PROJECT OF STRATEGIC

MANAGEMENT ON
SITARA CHEMICAL
INDUSTRY
GROUP MEMBERS

Zonash Ghaffar 2009-ag-118

Sameen Sajjad 2009-ag-114
Beenish Mukhtar 2009-ag-140
Sara Bashir 2009-ag-60
RESEARCH
METHODOLOGY
The research techniques that are adopted for the purpose of this
study are as follows:
Primary Data Collection
Formal Interview
The formal interview include people from management in Sitara
Chemical and their name are
Ubaid A. Khan DGM (Marketing)
Tariq Mahmood (Manager HR)
Questionnaire
That is formally filled by Managers
Secondary data collection
www.sitara.com.pk
Limitation
One of the major limitations while carrying out this research was
the lack of cooperation on the part of the management in
providing the data regarding the company and its policies.
 Contents
Introduction & history
Vision & mission
SWOT
Formulation (stage #1)
Input stage
EFE
IFE
CPM
Matching stage
SWOT
IE MATRIX
SPACE MATRIX
BCG MATRIX
GRAND MATRIX
Decision stage
QSPM
Implementation (stage # 2)
Evaluation stage (stage # 3)
INTRODUCTION
Strategic management is all about
Formulation

Implementation

& evaluation of strategies

So our project will revolve on these

critical parameters.
Strategic Management
Strategy Formulation
Input /action stage
Matching stage
Decision stage
Strategy Implementation
Strategy evaluation
STAGE # 1
INTRODUCTION
 Introduction of Sitara
Chemical
Sitara Chemical Industries Limited (Sitara Chemical) is a chemical
product manufacturing company. The company operates through its two
core divisions namely chemical division and textile division. These two
divisions include Chlor Alkali plants and yarn spinning units. The
company is engaged in manufacturing Caustic Soda and Allied Products
as well as yarn. Its product line includes caustic soda solid, sodium
hypochlorite, caustic soda liquid, hydrochloric acid, liquid chlorine,
caustic soda flakes, Specialty Chemicals, Fertilizers, Polyester Cotton
(PC) and Polyester Viscose (PV). The company is headquartered in
Faisalabad, Pakistan and employs 343 people.

We present strategic analysis of Sitara Chemical Industries Limited. The

report provides a comprehensive insight into the company, including
business mission, vision and key competitors. The companys strengths
and weaknesses and areas of development or decline are analyzed as
well. The hallmark of the report is the detailed strategic analysis on the
company
VISION & MISSION
Vision statement
Strive to develop and employ innovative"
technological solutions to add value to
business with progressive and proactive
."approach
Mission Statement

Continuing growth & diversification for the

bottom line result with risks well
contained
SWOT ANALYSIS
Strengths Weaknesses
Largest manufacture(caustic
soda) Need Sizable Market to
Largest Shareholder Sustain
Advance Technology Lack of Operations in
Plant Infrastructure Abroad

Strong Management Relying on Permanent

Customers
Strong Brand name
Financially Sound

Opportunities
Increase Production Capacity
Increase Product Line
Taking Advantage of
Geographic position
Provide Online Customer
Service & Ordering
System
Threats
Competitors
Economic Environment
Energy Crises
Threat of Stakeholders
Unstable Law & Order Situation
STAGE # 2
INPUT STAGE
 IFE
(INTERNAL FACTOR EVALUATION MATRIX)
Key Internal factors Weight Rating Weighted
Score
Strengths
Largest manufacturer(caustic soda) 0.12 4 0.48
Largest shareholder 0.11 3 0.33
Advance technology 0.13 4 0.52
Plant infrastructure 0.10 3 0.30
Strong management 0.09 4 0.36
Strong brand name 0.10 4 0.40
Financially strong 0.10 3 0.30

Weaknesses
Need sizeable market to sustain 0.10 1 0.10
Lack of operations in abroad 0.08 2 0.16
Relying on permanent customer 0.07 2 0.14

Total 1.00 3.09

INTERPRETATION
As the total weighted score of IFE is
greater than 2.5 so according to this the
strategy of Sitara Chemical is aggressive
and their internal environment is
superior and stable
 EFE
(EXTERNAL FACTOR EVALUATION
MATRIX)
Key External factors Weight Rating Weighted
Score
Opportunity
Increase production capacity 0.11 3 0.33
Increase product line 0.08 2 0.16
Taking advantage of geographic position 0.13 4 0.52
Provide online customer service and ordering system 0.09 3 0.27

Threat
Competitors 0.12 3 0.36
Economic environment 0.10 3 0.30
Energy crisis 0.15 4 0.60
Threat of stakeholders 0.12 3 0.36
Unstable law and order condition 0.10 3 0.30

Total 1.00 3.20

INTERPRETATION

As the total weighted sore of EFE is

greater than 2.5 so that shows Sitara
Chemical strategy should be aggressive
and response to the external
environment is superior and strong
 CPM
(COMPETITIVE PROFILE MATRIX)
Critical success factor SITARA ENGRO ITTEHAD
weight
chemicals chemicals Chemicals
Rating Scor Rating Score Rating Score
e
Product quality 0.11 3 0.33 4 0.44 2 0.22
Management 0.08 3 0.24 2 0.16 4 0.32
Global expansion 0.10 3 0.30 2 0.20 4 0.40
Financial Position 0.10 4 0.40 2 0.20 3 0.30
Market share 0.11 4 0.44 2 0.22 3 0.33
Advance technology 0.12 3 0.36 4 0.48 2 0.24
Brand name 0.10 4 0.40 2 0.20 3 0.30
Production capacity 0.10 3 0.30 4 0.40 2 0.20
Organization structure 0.08 3 0.24 2 0.16 4 0.32
Customer loyalty 0.10 3 0.30 4 0.40 2 0.20
Total 1.00 3.31 2.86 2.83
STAGE # 3
MATCHING STAGE
TOWS MATRIX
 Strengths - S Weakness W

1. Largest 1. Need Sizable Market to

manufacture(caustic soda) Sustain
2. Largest Shareholder 2. Lack of Operations in
3. Advance Technology Abroad

4. Plant Infrastructure
TOWS 3. Relying on Permanent
5. Strong Management
MATRIX Customers
6. Strong Brand name
7. Financially Sound
Opportunities O SO - strategies WO strategies
1. Increase Production (S4, S5,S7,O1,O2) (W2,W3,O3)
Capacity (Add new product line ) (Geographic expansion )
2. Increase Product Line & purchase land to build new (W1,O1,O2)
plant) (Need to improve infrastructure)
3. Taking Advantage of (S1,S2,S6,O3)
Geographic position
(Enter in new market)
4. Provide Online
Customer Service &
Ordering System
Threats - T ST strategies WT strategies
1. Competitors (S1, S5,S6, T1,T4)
(stable environment & Compete (W2,T1)
2. Economic Environment competitors by taking advantage (Launch products in other
3. Energy Crises of management & brand name ) geographical areas)
(S3,T3)
4. Threat of Stakeholders
(Install & update new technology)
5. Unstable Law & Order
INTERPRETATION
Critical Region:
WO

Managerial Decision:
Market development
Product development
 SPACE
(STRATEGIC POSITION & ACTION
EVALUATION MATRIX)
 Internal Strategic Position External Strategic position
Financial Strengths (FS) Environmental Stability (ES)
Return on Investment +4 Technological changes -2
leverage +5 Rate of Inflation -4
Working Capital +5 Price range of Competing products -3
Liquidity +4 Competitive pressure -2
Cash flow +5 Risk involved in business -3
Price earning ratio +4 Demand variability -5

Total +27 Total -19

Average 4.5 Average -3.16

Competitive Advantage (CA) Industry Strength (IS)

Market Share -1 Growth Potential +5
Product Quality -2 Profit Potential +5
Customer Loyalty -3 Financial Stability +4
Technological know-how -2
Resource Utilization +5
Control over suppliers and distributors -3
Capacity utilization +4
Technological know-how +5

Total
Total -11 +28
Average
Average -2.2 +4.67
 F
+6 S Aggressive
Conservative
+5
+4 X-axis =CA + IS
+3 = -2.2+(4.67)
+2 = 2.47
+1

CA IS
-6 -5 -4 -3 -2 -1 +1 +2 +3 +5 +6

-1 Y-axis = FS + ES
-2 = 4.5+(-3.16)
-3 =1.34
-4
-5
-6 Competitive
Defensive
E
INTERPRETATION
According to the space matrix score SITARA
CHEMICAL falls in the AGGRESSIVE
quadrant . Their strategies should be one of
the following:

Vertical and horizontal integration

Market penetration
Market development
Product development
Diversification
 IE
(INTERNAL-EXTERNAL MATRIX)
 IFE Total Weighted Score
EFE TOTAL WEIGHTED SCORE

Strong 3.0 3.09 Average 2.0 Weak 1.0

4.0 4.0 3.0 2.99 2.0 1.99

I ii iii
High
3.0 4.0 Sitara
3.0 Chemicals
Medium iv V Vi
2.0 2.99
2.0

Low vii viii ix

1.0 1.99
3.2

1.0
INTERPRETATION
Sitara Chemical falls in first region of IE
matrix and there main focus will be on
GROW AND BUILD and they will
mainly focus on strategies which are:
Market Development
Product Development
GRAND STRATEGY MATRIX
 Rapid market
growth
Quadrant II Quadrant I

Strong competitive
Sitara Chemical
Weak competitive

Quadrant III Quadrant IV

position

position
Slow market
growth
INTERPRETATION
Sitara Chemical has rapid market growth
and strong competitive position so it falls
in first quadrant and the most suitable
strategies for Sitara Chemical are:

Market Development
Product Development
 STAGE # 4
DECISION STAGE
 QSPM
(QUANTITATIVE STRATEGIC PLANNING
MATRIX)
 Key Internal Factors PRODUCT MARKET
DEVELOPMENT DEVELOPEMNT
Strengths Weight AS TAS AS TAS
Largets manufacture 0.12 3 0.36 4 0.48

Largest shareholder 0.11 3 0.33 4 0.44

Advance technology 0.13 4 0.52 3 0.39
Plant infrastructure 0.1 -- -- -- --
Strong management 0.09 2 0.18 3 0.27

Strong brand name 0.1 2 0.20 3 0.30

Financially sound 0.1 3 0.30 4 0.40

Weaknesses

Need sizeable market to sustain 0.1 2 0.20 3 0.30

Lack of operations in abroad 0.08 2 0.16 3 0.24

Relying on permanent customers 0.07 1 0.07 2 0.14

Total weight 1.00

 Key External Factors PRODUCT MARKET
DEVELOMENT DEVELOMENT
Opportunities weight AS TAS AS TAS
Increase production capacity 0.11 3 0.33 4 0.44
Increase product line 0.08 2 0.16 1 0.08
Taking advantage of geographic position 0.13 2 0.26 3 0.39
Provide online customer service & ordering system 0.09 -- -- -- --

Threats

Competitors 0.12 3 0.36 4 0.48

Economic environment 0.1 1 0.10 2 0.20

Energy crises 0.15 3 0.45 2 0.30

Threat of stakeholders 0.12 3 0.36 2 0.24

Unstable law & order situation 0.1 -- -- -- --

Total weight 1.00

Sum Total Attractive Score 4.34 5.09

 INTERPRETATION

According to the total attractive score of

QSPM Sitara Chemical should go for

MARKET DEVELOPMENT
 RECOMMENDATION
We did not found much discrepancies in the Strategy Analysis of Sitara
Chemical industry they are performing pretty well and have strong
strategic direction
According to our recommendation we suggest them that they could go
for Market Development because there is opportunity for them to
export their product in new markets
The reason behind the selection of this strategy is that they have strong
management team including Human Resource, Finance, Marketing,
Production & R & D Departments.
HRM plays very important role in all activities so Sitara Chemical
industry focuses on its function and scope for the betterment in present
and future.
There is another opportunity for Sitara Chemical industry that they have
to make segment in their website through which they can provide online
customer services in which customer can place order and provide
Feedback as well this will help them to capture more customers
throughout the world.
. . . .Cont
They can also increase their production
capacity because they have proper
infrastructure , advance technology &
strong financial position and these all
enable them to take advantage to
increase the production capacity.
CONCLUSION

We have learnt a lot from this project because this

project provides a real picture that how an
organization performs Strategy Analysis and what
are the factors that they considering most important
while performing the analysis.
According to the current position of Sitara Chemical
they have strong strategic direction, growing day by
day and they have largest market share in industry
so they should go for Market Development.
They continue to strive towards its goal of being the
leader in a manufacturing of caustic soda & their
presence in industry is a big threat for competitors.