Study of Strategic

Planning in
Descon
Engineering

Presented to
Dr. Abdul Waheed
Assistant Professor at UCP - Business School
PhD, School of Business and Economics
Maastricht University, The Netherlands
MSc, Econometrics, Tilburg University, The Netherlands
MSc, Statistics, Punjab University, Pakistan

Presented by
Arslan Nawaz (L1S14MBAM1101)
Khawaja Faizan Masood
(L1S14MBAM1095)
Muhammad Rahman Yousaf
(L1S14MBAM1111)
Syed Muhammad Daud Zaidi
(L1S14MBAM1070)

Chapter 1: Company Overview

1.1: About Descon Engineering Limited

Descon Engineering Limited is a part of Descon group.

Descon group has interests in chemical and power sector as well

but Descon Engineering remains the flagship company for the
group.

Descon Engineering is a Lahore, Punjab, Pakistan based company

established in 1977 with 4 employees.

Today Descon Engineering is a major player in the region serving

the oil and gas, chemical, petrochemical, cement, power and
infrastructure sectors in Pakistan and internationally.

Chapter 1: Company Overview, 1.1: About Descon Engineering Limited

Descon Engineering Limited International Footprint

United Arab Emirates, Saudi Arabia,

Qatar, Kuwait, Iraq, Oman and Egypt

Chapter 1: Company Overview

1.1: About Descon Engineering Limited

Joint venture includes Olayan Descon in Saudi Arabia in 1980.

Descon Engineering Limited is in the business of delivering clientspecific solutions for projects related to Energy, Infrastructure and
Process industry.

All operations have requisite ISO, OHSAS and ASME certifications

in addition to Descon's own QA/QC and HSE standards.

Chapter 1: Company Overview

1.2 1.4: Vision, Mission, Core Values

Vision

Mission

To become a world-class
engineering, manufacturing and
construction company operating
internationally.

To provide additional value to

our customer through
comprehensive and integrated
engineering, procurement,
construction and project
support, while maintaining
commitment to quality, schedule
and service.

Core Values

Professionalism, Team Work, Open Communication,

Leadership, Continuous Improvement

Chapter 1: Company Overview

1.5: Descon Engineering Interested Sectors

Gas Processing and

compression

Soda Ash

Industrial
Chemicals

Refining
Power

Thermal

Hydel

Wind

Chemicals

Hydrogen
Peroxide

Petrochemicals

Polyester

PTA

Ethylene/Polyethy
lene
Polypropylene/PD
H
PVC

Fertilizer

Ammonia

Urea

DAP

Cement

Infrastructure

Dams

Barrages

Irrigation
Channels

Motorways

Buildings

Water Treatment

Public Health

Industrial

Waste Water

Demineralization

Reverse Osmosis

Desalination

Chapter 2: Descon Structure and Hierarchy

1.6: Descon Engineering Services

EPC

Basic and Detailed Engineering

Procurement

Manufacturing

Construction

Civil/Structural

Mechanical

Piping

Equipment

Painting

Insulation

Heavy Lifts/Rigging

Electrical

Instrumentation & Control

Tanks

Buildings

Testing

Pre-Commissioning

Commissioning

Maintenance

Retrofits & Upgrades

Chapter 2: Descon Structure and Hierarchy

2.1: Descon Corporate Structure

Descon Engineering - Abu
Dhabi Head: Muhammad
Iqbal Khan
Olayan Descon - KSA GM:
Wasif Hanif Khawaja
Qatar, Kuwait, UAE C.E.O:
Dr Salman Zakaria

Descon Group
Engineering Business

Descon Engineering
C.E.O: Dr Salman Zakaria

Company Subsidiaries
Descon Integrated
Projects (Pvt.) Ltd.
President: Muhammad
Khawar Khan
Presson Descon
International (Pvt.) Ltd.
C.E.O: Samad Goraya

Chemicals Business

Descon Chemicals Pvt

Limited C.E.O:Taimur
Saeed

Company Subsidiaries
Descon Oxychem Limited

Power Business

Descon Power Solutions

Pvt Limited C.E.O:
Waseem Qazi

Company Subsidiaries
Rousch Power Pakistan
Limited
Altern Energy Limited

Chapter 2: Descon Structure and Hierarchy

2.2: Descon Engineering Structure and Hierarchy

C.E.O: Dr Salman Zakaria

Board of Directors Chairman:

Abdul Razak Dawood

COO: Mansoor Rashid

HR Head: Dr. Sitwat Husain
Recruitment and Selection
Training and Development
Performance Management
Compensation and Benefit
ICT Head is called C.I.O:
Shahid Saeed
Project Management

Business Applications
IT Engineering
Enterprise Solution
Enterprise architecture and
services
Client Management
Services
BD Head: Aamer Hadi Khan
Local
International
Proposals Head : Munir
Ahmed Alvi
Contracts Management

Head: Azman Zain Ahmed

Domestic Construction and
Services Head: Adnan
Bakhtiar
Equipment & Plant Head:
Akhtar Ali
Manufacturing Head: Habib
Raza Khan
Commercial: Head Murtaza
Ali
HSE Head: Ahmad Abbas
Mirza
QA/QC

Chapter 3: Study of Strategic Planning in Descon Engineering

3.1: Current Strategies

Corporate Level Strategy (Descon Group)
Diversification
Defensive
Business Level Strategy (Descon Engineering
Limited)
Related Diversification
Market Development
Product Development

Chapter 3: Study of Strategic Planning in Descon Engineering

3.2: Stages of Strategy Planning

Strategy
Implementation

Strategy
Formulation

Strategy
Evaluation

3.2: Stages of Strategy Planning

3.3.1: Strategy Formulation

In Descon engineering business goals are primarily derived from

company vision which is To become a world class engineering,
manufacturing and construction company operating internationally.

The two words in the Vision statement, World class EMC Company
and operating internationally defines company goals. But one word
in the vision is itself vague in nature, means to say how company
wants to be World class EMC company either by Cost or by quality or
by any other factor.

3.2: Stages of Strategy Planning

3.3.1: Strategy Formulation

The explanation of word World class EMC Company relies on the

mission statement or interpretation of Board of Directors or by Head
of Departments or by mutual consent of both.

And accordance to their interpretations they make strategies to fulfill

company ultimate goal which is to be World class international EMC
Company.

By taking one portion of vision to became world class company,

Descon engineering is currently adopting strategies on technological
advancement, quick project completion, and on high quality side
where as second portion posses strategies like market development.
This scenario follows goals to strategy approach.

3.2: Stages of Strategy Planning

3.3.1: Strategy Formulation

The explanation of word World class EMC Company relies on

mission statement or interpretation of Board of Directors or by Head
of Departments or by mutual consent of both.

And accordance to their interpretations they make strategies to fulfill

company ultimate goal which is to be World class international EMC
Company.

By taking one portion of vision to became world class company,

Descon engineering is currently adopting strategies on technological
advancement, quick project completion and on high quality side
where as second portion posses strategies like market development.
This scenario follows goals to strategy approach.

3.2: Stages of Strategy Planning

3.3.1: Strategy Formulation

Clear
Goals

Derived from
vision

Hidden
Goals

Other then
vision statement

3.2: Stages of Strategy Planning

3.3.1: Strategy Formulation

Head of Department made his own
strategy which they called as initiative.
The main focus of this initiative is to
improve business operations or to
introduce new things in the company.
These initiatives sometimes later
become business level strategies.
Board of Directors and C.E.O or Mutual
consent of Head of departments and
Board of Directors plus C.E.O make
business level strategies in their
meetings and then these strategies are
converted into annual objective and
these annual objectives later translates
into monthly objective for the
concerned department.

3.2: Stages of Strategy Planning

3.3.1: Strategy Formulation

There are two types of
business level
strategies in Descon by
time limit.

Whereas by nature
they also have two
types of business level
strategies.

Short
term
(within 1
year)

Business
Plan
strategy

Long term
(1 to 3
years)

Future
Business
strategy

3.2: Stages of Strategy Planning

3.3.1: Strategy Formulation

As per the interview and visit observations proper documented,

comprehensive strategy formulation framework is not present in
Descon. Descon have its own mechanism to formulate strategies and
these techniques are oral.

In Descon no formal documented tool is followed to judge Strengths,

Weaknesses, Opportunities and Threats of the company although
Descon followed it unconsciously. The SWOT is carried out according
to nature of proposed situation, if situation is on high level then
SWOT is orally done in the meeting of Board of Directors, or HOD, or
both. Otherwise in the case of low stake situation this is done with
CEO and HOD of the Concerned department.

3.2: Stages of Strategy Planning

3.3.1: Strategy Formulation

Selection of any strategy depends upon financial and strategic outcomes.

Some of these outcomes include
Return on investment
Cash flows
Income Vs Cost analysis
Market share
Quality
Goodwill
Profits

The higher return of these outcomes for certain strategy is, more chance is
to select that strategy.

3.2: Stages of Strategy Planning

3.2.2: Strategy Implementation

Strategy is implemented in Descon through top to bottom approach.

Strategy formulated and selected at top level is now pushed down.

First, Business level strategy become concerned departments, departmental

objectives then these departmental objectives become annual objective for
concerned department and later this become monthly objectives. Now
these monthly objectives become individual tasks for concerned personnel.

For example if business level strategy is to introduce latest technology of

computing servers, hardwares, and softwares in the company within 6
quarters after strategy selection. Then this technological advancement
strategy become primary departmental objective for ICT department which
main function is to address information and communication technology
needs.

3.2: Stages of Strategy Planning

3.2.2: Strategy Implementation

For example there are 35000 computers in the
Descon now annual objective will be formed like
that upgrade 72% of computer within first four
quarters after selection now this annual objective
break down into monthly objective like upgrade
6% of computers from July 2014 to June 2015. This
monthly objective will be on concerned personnel.

3.2: Stages of Strategy Planning

3.2.2: Strategy Implementation

It is quite obvious that Descon will face some issues while strategy
implementation. Most of the time company faced following issue while
implementing their strategies but these issues varies from strategy to
strategy.
Shortage of Human resource needed
Resources movement
Funds allocation
Behaviors of employees
Communication problems
Interglot

As issues vary from strategy to strategy same like this solution of issue vary
to from strategy to strategy.

3.2: Stages of Strategy Planning

3.2.3: Strategy Evaluation

In Descon strategies are controlled and evaluated through

monthly review, some time weekly review. The main purpose of
these monthly reviews is to check progress towards achievement
Vs Plan. In case of any problem or error corrective measures are
taken.

There is also another way to control strategy implementation. And

that is performance appraisal system. Monthly objective assigned
to certain personnel become their job responsibility. Now
concerned employee is ranked accordance with progress in
respect to strategic objective complementation in the specified
time frame.

3.2: Stages of Strategy Planning

3.2.3: Strategy Evaluation

Individual employee will not be rate as alone for strategic

objective complementation. Now Performance appraisal system
follows bottom to up approach. Concerned head of department
will also be rated for strategic complementation.

Strategies also evaluated through expected outcome Vs Actual

outcome.

3.2: Stages of Strategy Planning

3.2.3: Strategy Evaluation

Take the example of technological advancement
strategy to make understanding easy. Monthly
tasks were assigned to certain employees. On the
performance appraisal day employee will be rated
for this objective accordance with his/her
performance. Now this mechanism move up and
head of department will be rated accordance with
his/her performance.

Bibliography

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Descon Engineering:
http://www.descon.com/engineering.php?id=61

Descon Engineering Sectors . (n.d.). Retrieved 6 7, 2014, from

Descon Engineering:
http://www.descon.com/engineering.php?id=25

Descon Engineering Services . (n.d.). Retrieved from Descon

Engineering: http://www.descon.com/engineering.php?id=18

Descon Philosophy. (n.d.). Retrieved 6 7, 2014, from Descon

Engineering: http://www.descon.com/engineering.php?id=63

Hussain, S. I., & Saeed, S. (2014, 6 9). Strategic Planning in

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