GROUP MEMBERS

AMEERA JAHANGIR
HUMERA M HANIF

MADIHA RAZZAQUE

CEMENT INDUSTRY OF
PAKISTAN
o All Pakistan Cement

Manufacturer Association
(APCMA) is a governing body
for cement industry.
APCMA plays a significant role in
protecting the cement industry
to the governmentinrespect of
formulation of
governmentpoliciesfor the

INTRODUCTION
Lucky cement was founded in

1994 by Mr. Abdul Razzaq Tabba.

Lucky cement has been

sponsored by one of the largest

business group in Pakistan the
Younus brothers (YB) group.
Fulfills Customer Social

Responsibility (CSR) by offering

scholarships to students
Donations for social welfare

BRANDS OF LUCKY
CEMENT

VISION
We envision being the leader
of the cement industry in
Pakistan, identifying and
capitalizing on new
opportunities in the global
market, contributing towards
industrial progress and
sustainable future, while
being responsible corporate
citizen

MISSION
Our mission is to be a premium
cement manufacturer by building a
professional organization, having
state-of-the-art technology,
identifying new prospects to reach
globally and maintain service and
quality standards to cater to the
international construction needs
with an environment-friendly
approach.

EVALUATION OF MISSION
STATEMENT

S.N
O
1.
2.
3.
4.
5.
6.
7.
8.
9.

AVAILABILITY

COMPONENTS
Customer
Product/service
Market
Technology
Concern for survival
growth, profitability
Philosophy

Self-concept
Concern for public
image
Concern for
employees

Yes
Yes
yes
Yes
yes
No
yes
yes
No

PROPOSED
VISION
STATEMENT
To

transform lucky cement into a

model cement manufacturing
company engaged in nation
building through most efficient
utilization of resources and
optimally benefiting all
stakeholders while enjoying public
sector and goodwill in local and
international market.

PROPOSED MISSION:OUR MISSION IS TO BE PERCEIVED BY OUR

CUSTOMERS BY PROVIDING HIGHEST
QUALITY OF CEMENT USING STATE OF THE
ART TECHNOLOGY AND RETAINING
PERSONNEL OF EXCEPTIONAL ABILITY
WHILE MAINTAINING ITS LEADING
POSITION AIMS TO BUILD UP ON ITS
PRESENT STATE OF PROFITABILITY WITH A
VIEW TO MAXIMIZE SHAREHOLDERS
WEALTH AND CARE FOR GLOBAL
ENVIRONMENT.

INFORMATION GATHERED
OPPORTUNITIES
Upcoming national building

projects
Increasing demand for
cement in gulf region
Market development and

penetration
Infrastructure development

Population increase causing

increase in real state

Increase production to
reduce cost and achieve
economies of scale
Global expansion
Undiscovered markets of
northern regions of Pakistan

THREATS
Governmental

regulations
Fluctuation in
currency rates
Price competition
Alliance opposition
Fluctuation in
demand
Political instability
Increase production
cost

 High product

STRENGTHS
quality
Infrastructure

near ports
Highest export

share
High pay scale

Large dealer

network
Employee

development

WEAKNESSE
S
High transportation cost
Low advertising and

exposure
Increasing general and
admin expense
Capital intensive
industry
Increased production
cost
Highly Localized and
regionalized markets
Low gratuity and PF

funds

ANALYTICAL FRAMEWORK

input stage
Stage 1 summarizes the basic input
information needed to formulate
strategies.
The information derived form IFE
matrix , EFE matrix & CPM a provides
basic input information for matching
& decision stage.
Good intuitive judgment is always
needed in determining appropriate
weights & ratings.

EXTERNAL FACTOR EVALUATION MATRIX

(EFE)
OPPORTUNITIES
Increase in infrastructure
development
Unexploited markets in
North Pakistan
Increase in population
causing growth in
housing sector
Global expansion
Increase production to
reduce cost and achieve
economies of scale
THREATS
Government regulations
Fluctuation in market
demand
Price competition
Political Instability
Rising input costs
TOTAL

WEIGHTS
0.20

RATING
S
3

WEIGHTED
SCORE
0.60

0.05

0.15

0.10

0.40

0.15
0.07

4
3

0.60
0.21

0.15
0.08

2
1

0.30
0.08

0.10
0.03
0.07
1.00

3
3
2

0.30
0.09
2.8
0.14
7 2.87

EXTERNAL FACTOR
EVALUATION MATRIX
The most important(EFE)
factor to being successful
in Lucky cement is the global expansion indicated
by the 0.15 weight.

The company has a great opportunity to increase

the infrastructure development.
Unfortortunatly, the company is facing its major
threat in government regulation .
The price competition is also the second major
threat that the company is tackling with in the
present situation.
Overall the weighted score is 2.87 which shows

COMPETITIVE PROFILE MATRIX (CPM)

LUCKY CEMENT

CRITICAL
SUCCESS
FACTORS
Advertising
Product
quality
Price
competitiven
ess
Management
Financial
position
Customer
loyalty
Global
expansion
Market share
TOTAL

DG KHAN
CEMENT
WEIGH RATIN SCORE RATIN SCORE
T
G
G

PIONEER
CEMENT
RATIN SCORE
G

0.10
0.20

3
4

0.30
0.80

4
3

0.40
0.60

2
3

0.20
0.60

0.15

0.60

0.60

0.60

0.15
0.15

4
4

0.60
0.60

3
2

0.45
0.30

4
2

0.60
0.30

0.10

0.30

0.20

0.30

0.10

0.20

0.10

0.10

0.05
1.00

0.15
3.5

0.10
2.75

0.10
2.80

COMPETITIVE PROFILE MATRIX (CPM)

The most critical success factor

enjoying DG Khan is in advertising.
Whereas, Lucky cement is weaker in
advertising to its competitors.
The most import factors for being
successful in the organization are the
product quality & the major strength
lies in its financial position.
.However the market share of the
company is far better to its
competitors.

INTERNAL FACTOR EVALUATION MATRIX (IFE)

STRENGTHS

WEIGHT

RATING

WEIGHTED
SCORE

0.09
0.12
0.10
0.20
0.05

4
4
3
3
3

0.36
0.48
0.30
0.60
0.15

0.08
0.06

4
4

0.32
0.24

Low advertising
Increase in cost of production
High transportation cost
Highly regionalized and
localized market.

0.05
0.10
0.07
0.08

2
1
1
1

0.20
0.10
0.07
0.08

TOTAL

1.00

2.9
0

Revenues increased
High product quality
High pay scale
Highest export share
Inventory turnover up 3.58 to
4.00
Larger dealer network
Employee development

WEAKNESSES

INTERNAL FACTOR EVALUATION

MATRIX (IFE)
The 12 key factors mentioned in the
IFE Model shows the most attractive is
its export share 7 its high product
quality.
The major weakness of the company
is high transportation cost &
regionalized and localized market.
There is a room for improvement in
the inventory turn-over.
Overall the weighted score is 2.90
which above than the average showing

PROJECTS - NEW &

ONGOING

NTS

The financial document for cement plant in DR Congo

have been signed with multilaterals and International
institutions in London on the 27th Nov 2014 & financial
goals have been achieved.

The DR Congo Cement Plant is expected to be

start commissioning from June 2016.It will open

new door for growth & to implement the
company future expansion plant outside
Pakistan.
Pakistan leading & larger provider of quality cement

organized Employee Volunteer Activity in collaboration with

WWF Pakistan under the aim of social cause.

MATCHING
STAGE

For the purpose of matching

stage we made:
SWOT

(Strength,weaknesses,opportu
nities,Threats) matrix
SPACE ( strategic position and

action matrix) matrix

SWOT MATRIX
The concept of

determining
strengths,
weaknesses,
opportunities, threats
is the fundamental
concept behind SWOT
model

To present the model

in a more
understandable way

STRENGTHS

1. Financially strong
2. High product
quality
3. Highest export
share
4. High pay scale

1.

WEAKNESSE
2.
S
3.

OPPORTUNI
TIES

1.
2.
3.

SO

strategies

WO strategies

BUILD UP
EXPOSURE AND
BETTER BRAND
IMAGE THROUGH
RIGHT
PROMOTIONAL

MIX
INCREASED
EXPORTS TO GULF
( W1 ,
Low advertising and
REGIONS
O1 ,O2 )
exposure
( S1 ,S2,O2)

Low gratuity and PF

DIVERSIFY IN
funds

GULF REGION
Increasing general
(W1,O2 )
and administrative
expenses

Upcoming national
ST strategies WT strategies
projects

Demand for cement

OVERCOMING
REDUCE GENERAL
in gulf region
COMPETITORS
& ADMIN
Expansion in
PRESSURE
EXPENSES TO COPE
cement industry
THROUGH MORE
WITH NARROW

1. Govt regulation on
slots

SETUP NEW
FACTORIES IN
NORTHERN
REGIONS OF
PAKISTAN
(S1 , O1 )

QUALITY (S2,T2)

RESOLVE ALLIANCE

COMPETITION
(W3,T2)

FINANCIAL POSITION :-

SPACE MATRIX

COMPETITIVE POSITION :- rates

RATING

Increase in net sales revenue

4
Continuous increase in stock value (PRs 130/=)
Increased Earning price share-EPS (PRs 2.1 per
5share)
5
Total:
15
INDUSTRIAL POSITION :
Increasing competition in construction sector
4
Increasing domestic demand for cement i.e. 92%
5
Enhancement in the budget for Annual
5 Development Plan
Increasing growth rate
3
Total:
17
STABILITY POSITION :Allowance of subsidized cement imports & lesser
rebates
-4
Cut throat competition has created instability. -3

Strong distribution network.

-2
6

High quality products.

-3

High export share.

-4

Market development in Gulf

-2

Govt. Project as DGP Army.

-3
Total:14

DIRECTIONAL VECTOR
COORDINATES
X axis: (CA + IS) = -2.80 +

4.25= 1.45

Y axis: (ES + FS) = -3.40 +

5.00 = 1.60

FP

SP

DECISION
STAGE

KEY FACTORS
OPPORTUNITIES:-

GLOBAL EXPANSION RIGHT PROMOTIONAL MIX

WEIGHTS

AS

TAS

AS

TAS

Upcoming national projects

0.15

0.15

0.60

Demand for cement in Gulf

Expansion in industry due to
house building loans by banks
THREATS :Government regulations
Price competition
Alliance opposition
Fluctuating currency rates

STRENGTHS:Strong financial position

High product quality
Highest export share
High pay scale
Larger dealer network
WEAKNESSES :Low advertising
Increasing Gen & Admi
expenses
Low gratuity & PF funds
Increased production cost

0.20
0.10

4
1

0.80
0.20

1
4

0.20
0.40T

0.15
0.10
0.15
0.10
1.00

0.15
0.12
0.20
0.10
0.08

0.10
0.05

4
2
2
4

3
3
4
3
2

1
-

0.60
0.20
0.30
0.40

0.45
0.36
0.80
0.30
0.16

0.10
-

3
3
3
2

4
4
3
4
3

3
-

0.45
0.30
0.45
0.20

0.60
0.48
0.60
0.40
0.24

0.30
-

0.10
0.10
1.00

1
1

0.10
0.10

3
4
5.2

0.30
0.40 5.9
5.92

QSPM -QUANTITATIVE STRARTGIC PLANNING MATRIX

This technique basically tells which strategy is the best for the

company.
The

two alternative strategies considered are

GLOBAL
EXPANSION & EXPOSURE THROUGH BRAND IMAGE
&
PROMOTIONAL MIX.

The demand for cement in gulf areas are

high in gulf areas as

compare to domestic market.

The opportunity of expansion of cement industry due to house

building loan is more attractive with market penetraton strategy.

The major threat of governmental regulations ,price competition

& currency
strategies .

rate

are

associated

withdraw

both

alternative

The strong financial position , high product quality & pay scale

are attractive to brand image whereas market share of

highly attractive to capitalize the strengths.

19% is

Advertising, gratuity fund & production cost should be reduced

and convert in to the strength.

RECOMMENDATIONS
MARKET PENETRATION :- Because of number of

construction projects have been initiated by the

Government and the rising trend of house
financing through banks and investment in real
estate and property.
MARKET DEVELOPMENT :-The demand for

cement has drastically increased in Gulf region.

In order to cater to the increasing demand and
to develop new markets, Lucky Cement should
increase its exports towards Gulf region and
also in other countries, hence developing a
market in a new geographical segment.

GENERAL RECOMMENDATIONS
o INCREASE PAY SCALE OF ITS EMPLOYESS :-

In comparison with its competing

organizations still the turnover rate is very
high. The reason being low gratuities and
benefits after retirement due to which most
of the employees quit. To retain its valuable
Human Resource, Lucky Cement should pay
attention towards this area.

IMPLEMENT CONTINGENCY
PLANNING : Lucky cement need to implement

contingency planning to cope with

the future constraints

Cost leadership through best value

strategy

CONCLUSION
Lucky cement like any other responsible

organization is redefining its business

operations in a fundamental way

It is working to promote sustainable

development and integrating its endeavors of

profitable growth with the initiative of
environment all protection &uplifting the quality
of life of the present &the future generation

The company is moving towards its growth

mode and can aggressively employ the

strategies of market development market
penetration product development backward and
forward integration as per need of demand of
the org.

THANK YOU