Sarker Food beverage

SARKER FOOD AND BEVERAGE

GROUP MEMBERS: ID#

PRESENTED BY:

KHAN,IFTEAR MASUD 12-21321-2SARKER,SOLOMON 12-21397-2QUANIZ SADIA 12-21261-2SAHA PRITOM 12-22071-2MAHMUD MD.KHONDOKER ASIF 12-20149-2

SARKER FOOD AND BEVERAGE MISSION AND VISION:

They’ve a clear vision and mission to define their work objectives and motives to serve. They want to be one of the leading food and beverage industry in Bangladesh within next 20 years.

The company aims to expand their business to all the divisions of Bangladesh within next 5 years.

SARKER FOOD AND BEVERAGE CURRENT AND FUTURE OBJECTIVES AND STRATEGIES

They develop their own distribution channel and Company prefer to sell their product in cash because company don`t want to take risk to sell their product in credit. Company minimize their operating cost to raise up their profitability. Company always try to develop new product according to the taste and demand of their consumer and increase their product variety.

Their future is more or less certain but they needs a clear strategic plan to continue their operation smoothly .

External Factor Evaluation

Opportunity

Available scope to capture the market

Proper transportation systems

Labor cost is comparatively low

Available Natural Resources

Growing number of distributors

External Factor Evaluation

Threat

Political unrest.

Decreasing labor supply

Threat from substitute companies.

Increased electricity bill for per unit production

Increasing value added tax in beverage

EXTERNAL FACTOR EVALUATION

Key External Factor Weight Rating Score

Opportunity

1. Available scope to capture the market .15 4 .60

1. Proper transportation systems .10 2 .20

1. Labor cost is comparatively low .15 1 .15

1. Available natural resources .05 2 .10

1. Growing number of distributors .05 3 .15

Threats

1. Threat from substitute companies. .15 4 .60

1. Increasing value added tax in beverage .05 2 .10

1. Increased electricity bill for per unit production .05 1 .05

1. Decreasing labor supply .10 3 .30

1. Political unrest. .15 3 .45

TOTAL 1   2.70

COMPETITIVE PROFILE MATRIX

Key External Factors

Weight Sarker Food & Beverage Universal

Rating Score Rating Score

Advertising .10 1 .10 2 .20Product quality .20 2 .40 3 .60

Price competitiveness

.20 4 .80 3 .60

Financial Position

.15 2 .15 4 .60

Market Expansion

.10 2 .20 3 .30

Management .15 3 .45 2 .30Customer loyalty

.10 2 .20 3 .30

Total 1   2.3   2.9

Porters Five Forces

Internal Factor Evaluation

Strengths:

Forward integration strategy

Backward integration strategy

Large production capacity

Well organized management

Differentiate of product

Internal Factor Evaluation

Weakness:

SR (sales representative) is not skilled enough

Not enough working capital.

Quality is not up to the mark

Debt to equity is high

Minimum effort in marketing policy

INTERNAL FACTOR EVALUATION

Key Internal Factor Weight Rating Score StrengthsLarge production capacity .10 4 .40

Differentiate of product .10 3 .30

Well organized management .15 4 .45

Backward integration strategy .05 3 .15

Forward integration strategy .05 3 .15

Skilled employ in production .10 3 .30

WeaknessQuality is not up to the mark. .10 2 .20

Minimum effort in marketing policy. .05 1 .05

Debt to equity is high .05 2 .10

Not enough working capital. .05 2 .10

SR (sales representative) is not skilled enough. .10 1 .10

Inventory management is not well enough .10 2 .20

TOTAL 1   2.50

TO EXPAND THE MARKET BEYOND THE NORTH BENGAL WOULD BE A GOOD STRATEGY OF THIS COMPANY .

THIS COMPANY SHOULD DIVERSIFY THEIR PRODUCT RANGE.  

SWOT MATRIX

SO Strategy

It should produce high quality product and their target customer should be mass people.

They should hire more skillful people for producing high quality product.

WO Strategy

It should produce high quality product and their target customer should be mass people.

They should hire more skillful people for producing high quality product.

ST Strategy

It should change their management system so that they can provide better decision that makes profitable business.

It should collect more fund to advertise their product very often even if it is needed they launch their own web site if it is needed

WT Strategy

BCG MATRIX

• The company falls under QUESTION MARKS.

Recommendation

Market Penetration : This company should continue to meet its current businesses in the North Bengal area as number of competitors low, customers are increasing significantly and to fulfill this it should increase market share through greater marketing effort. It can be done by increasing the number of salespersons, increasing advertising expenditure, increasing sales promotions and increasing publicity

Market Development : It should expand the market into new geographic areas like Dhaka, Chittagong, and Sylhet which is populated country to grab the market.

Differentiation Strategies: It should producing unique products that may prefer to the consumers who are price insensitive

Recommendation

Product Development: It should collect funds for developing R&D section and it should introduce better-quality products than its competitors who are producing same types of product at a comparative price.

Defensive Strategies: As it is in the question marks, it should divestiture it Energy Drink business as government has imposed more VAT and should raise capital for strategic acquisitions and investment in research and development. This company had done retrenchment strategies and sold its fixed asset (Amusement Park).But it has failed to fulfill its debt. So it might improve their financial condition if they adopt divestiture strategy. they adopt divestiture strategy.

END