Dalda SM Report

TABLE OF CONTENTS
PARTICULARS PAGE NO
INTRODUCTION 2-4
• Pakistan Edible Oil Industry Overview 5-6
• Introduction & History Of Dalda 5-6
• Mission Statement 7-8
• Organization Structure 9-10
• Manufacturing Facility & Process 11
• Market Share 12-13
• Competitors Overview: Sufi Oil 14-16
Habib Oil Mills
ENVIRONMENTAL ANALYSIS
• Porter five forces model 17-23
• Political, Economic, Social and Technological 24
• EFE Matrix 25-26
COMPANY AND COMPETITOR ANALYSIS
• CPM Matrix 27
INTERNAL ANALYSIS
• Value Chain Management 28
• Core Competencies 29
• Strategic Cost Management 30
• IFE Matrix 31-32
STRATEGIC ANALYSIS AND RECOMMENDATIONS
• Generic Strategy 33
• SWOT Analysis 34-37
• TOWS Matrix 38-39
• SPACE Matrix 40-42
• BCG Matrix 43-44
• IE Matrix 45
• Grand Strategy Matrix 46
• QSPM Matrix 47-49
STRATEGIC IMPLEMENTATION
• The components of Strategic implementation 50-51
• Balanced Business Scorecard 52-54
• Diagnostic Survey 54-58
Institute of Business Management 1

PAKISTAN EDIBLE OIL INDUSTRY-
OVERVIEW
Edible oils and fats are an essential part of the daily needs of a Pakistani family. It is also a
significant part of household expenditure of an average family - almost 6% of the household
budget is spent on it.
Branded as well as non-branded products compete in the market. Branded products are
mostly at the high end of the market and non-branded towards the lower end of the market
and mostly selling in loose form.
Edible oils and fats are marketed in variety of packaging formats – tin cans, plastic bottles,
plastic pouches, plastic buckets and in loose form.
Ghee and cooking oil industry in Pakistan relies heavily on the imported edible oil and
spends a hefty foreign exchange on the payment of edible oil imports. Currently, Pakistan
spends about $1.0 billion per annum on the import of edible oil.
At present the capacity utilization of ghee or edible oil is about 55 percent. A probable reason
for this under utilization is the existence of unregistered ghee and cooking oil-processing
units in the country.
Edible oils market is a highly fragmented market with many brands and non branded players.
Total Consumer Cooking Fats & Oils Market
48% Branded
52%
Unbranded
The Cooking Fats and Oils market in Pakistan is about 1.2 million tones of which Vanaspati
market accounts for 0.875 million tones and edible oils for about 0.325 million tones. Of the
total market of 1.2 million tones, the branded market is about 51.65% and the remaining
48.35% is un-branded.

An analysis of the major players in the branded market reveals that most of this market is
non-premium segment taken by a large number of very small regional brands. Companies
with national presence dominate the premium segment.
On the basis of its market, it is divided into three categories; national, regional and local.
National brands are those popular in the whole country and marketable in the whole cities of
Pakistan. Some examples are Dalda, Habib and Sufi. Local brands are those, which are
present in a particular province like Punjab. Some examples are Kisan, Meezan, Kashmir or
Shan. Regional brands are those which are present in a particular city like Rawalpindi.Some
examples are Latif, Shahbaz etc.
INDUSTRY SEGMENTS
The oil and ghee industry has 3 clear segments.
 Ghee (75.33%) with a total consumption of 1.75 Mil tons.

 Cooking Oil (23.33%) with a total consumption of 1.0 Mil tons
 Industrial Fat (1.34%) with a total consumption of 50,000 tons.
LIST OF ALL PLAYERS:

INDUSTRY PALYERS
The names of various players in the industry with their respective sales volume per annum in
the ghee and oil categories are as follows:
GHEE OIL
Dalda 65,000 100,000
Habib 85,000 105,000
Ghee Corpo. Of 144,000
Pakistan
Associated 66,000 1,200
Hamza 30,000 1,500
United 30,000
Punjab Oil 20,000 800
Gulf 6,000 700
Continental 2,500 600

Mehboob 20,000
Faisalabad (Kissan) Oil 20,000 3,000
Shahbaz 30,000
Khayaban 30,000
Chniot Ent. 20,000
Waheed Hafeez 40,000
Piracha Ghee 10,000
Hunza 20,000 2,500
Madni 10,000 2,500
PTC 3,000
Agro (Soya Supreme) 15,000 65,500
TULLO 25,000 85,000
SUFI 20,000 81,000
Evolin 5,000
Market Share
Habib Oil Mill - ATM Gases -

Wazir Ali - Tullo,
Habib, 13% Soya Supreme,
3%
2%
Dalda, 11%
Paracha Textile -
Meezan/ Kissan,
Loose & Other 0.5%
Small Branded
Cooking Oil, Sufi Group - Sufi
70% Cooking Oil,
0.5%

DALDA FOODS
INTRODUCTION
The Dalda brand has a strong heritage in Pakistan. It is synonymous with assured quality,
which is why the business has been able to charge a premium over its competitors year after
year. The Dalda brand is one of the 3 leading top brands in the Country.
Current trademark and license rights in Pakistan only for:

o Dalda Vanaspati
o Dalda Melange
o Dalda Cooking Oil
o Dalda Planta
HISTORY OF VANASPATI
Dalda brand was first launched in British India in 1938. However, the Company launched
the brand in Pakistan in 1952. The brand was successfully re-launched in 1997 when the
Trans level in formulation was reduced to below 1% making it the healthiest Vanaspati
available in Pakistan. The brand was again re-launched in 2001 with a new flavor
“Irresistible taste with nutrition.
HISTORY OF COOKING OIL
Dalda cooking oil was first launched in 1981 and re-launched in 1997 with the addition of
Vitamin-E to create functional differentiation.
The brand was again re-launched in 2001 on the platform of “Good Health, Great Taste…”
Dalda is an all-purpose Vanaspati used in the preparation of all types of meals and is branded
as a high quality grade in the retail market. Dalda is the most established branded vanaspati
and holds a significant market share of the premium branded vanaspati market (Excluding
Industrial Vanaspati Market).
Dalda Melange is a recently developed cooking medium that is typically used in the
preparation of all types of meals. It has been developed as a middle product between
Vanaspati and edible oil primarily to appeal to the health conscious customers
Dalda Cooking Oil is a well-established name in the Edible Oils Market having significant
share of premium branded cooking oil. Launched in 1981, the brand is on top of the recalled
foods brands of Pakistan. It has seen a continuous volume growth over the years and is one
of the most trusted household names.

Planta was launched in 1989 specifically to attract the customers who wanted the health
benefits of oil and taste of Vanaspati. The brand was transferred to the house of Dalda in
June 2000 and the name was reformatted as Dalda Planta. It enjoys very loyal customers’
base taking 4% of the branded edible oil market.
Dalda products are manufactured in a Company-owned plant located at Sindh Industrial &
Trading Estate (S.I.T.E.) Karachi.
The Company’s principal products compete in the categories of

• Vanaspati and
• Edible Refined Oils and are distributed primarily through an integrated channel of
company distributors.

MISSION STATEMENT OF DALDA
Dalda …. Our Purpose
”At the heart of the corporate purpose, which guides us in our approach to doing
business, is the drive to serve consumers in a unique and effective way. This purpose
has been communicated to all employees worldwide”.
Our purpose in Dalda is to meet the everyday needs of people everywhere – to anticipate the
aspirations of our consumers and customers and to respond creatively and competitively with
branded products and services which raise the quality of life.
Our deep roots in local cultures and markets around the world are our unparalleled
inheritance and the foundation for our future growth. We will bring our wealth of knowledge
and international expertise to the service of local consumers – a truly multi-local,
multinational.
Our long-term success requires a total commitment to exceptional standards of performance

and productivity, to working together effectively and to a willingness to embrace new ideas
and learn continuously.
We believe that to succeed requires the highest standards of corporate behavior towards our
employees, consumers and the societies and world in which we live. This is Dalda’s road to
sustainable, profitable growth for our business and long-term value creation for our
shareholders and employees.”

MAIN COMPONENTS OF MISSION STATEMENT
1. CUSTOMERS: The purpose of Dalda is to serve consumers in a unique and

effective way.
2. PRODUCTS OR SERVICES: It caters the requirement of everyday namely soap

and detergents for washing and cleaning, tea for drinking and margarine for daily
breakfast.
3. CONCERN FOR SURVIVAL: The Economic objectives of Dalda are deep rooted
in local cultures and markets around the world.
4. PHILOSOPHY: The philosophy of the company is to provide highest standard of

corporate behavior towards the employees, consumers and the societies.
5. SELF CONCEPT: Total commitment to exceptional standards of performance and

productivity.
6. CONCERN FOR PUBLIC IMAGE: Profitable growth for the business and long
term value creation for shareholders and employees.
7. CONCERN FOR EMPLOYEES: The Company also focus to look after the
employees and to motivate them to look after the interest of consumers.

DALDA FOODS (PVT) LIMITED
ORGANIZATION STRUCTURE
CHAIRMAN
BOARD OF
DIRECTORS
DIRECTOR DIRECTOR DIRECTOR DIRECTOR

PRODUCTIO COMMERCIA FINANCE HUMAN
N L RESOURCE
GENERAL
GENERAL MANAGER- GENERAL GENERAL
MANAGER- MARKETING MANAGER- MANAGER-
PRODUCTIO FINANCE HUMAN
N RESOURCE
SALES
FACTORY
MANAGE
MANAGE FINANCE
R
R MANAGE GENERAL
R MANAGER-
HUMAN
RESOURCE

Organizational Chart Of a Department
Business Unit Head
Marketing Commercial Factory Development

Manager Manager Manager Manager
Brand
Manager

MANUFACTURING FACILITY
Production facilities are situated at a strategic location at Sindh Industrial & Trading Estate
(S.I.T.E.), Karachi near to the Karachi Sea Port to enable easy access to imported raw
material. The factory has an area of about 9.27 acres.
The oil refinery is highly automated and utilizes advanced technological processes. The
Refinery includes all buildings, land, electrical and mechanical installations, furniture,
fittings, machinery and equipment utilized by the business, including the margarine plant but
excluding the third party packing facilities, which are located within the same vicinity.
MANUFACTURING PROCESS
Edible Re fine d Oil Va na spa ti
M aterial Intake M aterial Intake
B lending
P hosphoric Acid De-Gumm ing P hosphoric Acid De-Gumm ing
Caustic Soda Neutralisation Caustic S oda Neutralisation
S odium Methylate Interesterification
Bleaching E arth Bleaching Bleaching Earth Bleaching
Filteration
De-Gassing De-Gassing
De-odourisation De-odourisation
V itamins flavours etc. Blending V itamins flavours etc. B lending
Filling Filling

MARKET SHARE
In a highly fragmented MARKET Dalda is the largest selling single brand. Dalda‘s market
can be broadly divided in two parts.
1. Vanaspati market
2. Edible oil market.
VANASPATI MARKET
Total Vanaspati Market
Dalda
4%
Non-Premium
Brands
41% Un-branded
47%
Other Premium
Brands
8%
Branded Vanaspati Market
Dalda
8%
Other
Premium
Brands
15%
Non-
Premium
Brands
77%
An analysis of the total market reveals that about 47% of the market are un-branded. Of the
remaining 53% market, premium segment constitutes only about 12% of the total market. In
the branded market however, the premium segment accounts for 23%.

Edible Refined Oil Market
An analysis of the total market reveals that about 52% of the market is un-branded. Of the
remaining 48% market, premium segment constitutes about 30% of the total market. In the
branded market, however, the premium segment has a major share and accounts for about
62%.
OIL COSTING SHEET

A: COSTING PER KG % EXAMPLE (RS)
Oil 80% 80
Ingredients 1% 1
Packaging Material 8% 8
Total Cost of Material / TON 89% 89
2. Product Cost (per ton)
Variable Costs
Material Cost 89% 89
Variable FOE 2% 2
Distribution Cost 2% 2
Fixed Costs
FOE 2% 2
Total Product Cost per ton 94% 94

3. Period Cost (per ton)
Direct
Team Cost
Admin Costs 1% 1
Finanical Charges 1% 1
Ammortization 0% 0
Advertising & Promotion 2% 2
Others - Taxation 1% 1
Total Period Cost Per Ton 3% 3
4. NPS COST
Redistribution 0% 0
TPR 2% 2
Shortages/ Damages .35 % of GSV 0% 0
Total NPS Cost 2% 2
Total Cost 100% 100
CHANGE TOTAL COST ALL OTHER
COSTS WILL CHANGE AS PER %.

COMPETITORS
INTRODUCTION
Sufi Group of Industries are one of the most dynamic and quality conscious companies with
customer oriented approach towards their products.
Sufi has a long-standing commitment to the community and to giving back to society. The
top management of Sufi has believed that the Company has a responsibility to use its money,
its people, its energies and resources for the long-term benefit of society.
Over the last decade, Sufi Group of Industries has emerged as one of the fastest growing,
forward-looking and most innovative consumer goods company in Pakistan. Right from
recruiting and training top talent to setting new standards of product quality and promotional
excellence.
Sufi provides products and services of superior quality and value their customers. Their
customer oriented policy has given them a proper identity in the market. Their slogan is that
customer is the lifeline of business and they need to be satisfied at any cost.
Serving the country since 1952, the company has diversified into the field of Soap chemical
products, detergent and edible oil business.
Products are Sufi Mini, Sufi Darja Awwal, Sufi Glycerine, Sufi Brown, Sufi Special
Quality, Sufi Super, Sufi Nirol and Sufi Ploy Bag 1 kg; 1/2 kg.

HISTORY OF SUFI
Established in 1992 with state of the art facilities to produce quality guaranteed cooking oils.
The company defined its goals as producing the best edible oil for quality conscious
consumers with the local market in mind and proper influx of quality management. The Sufi
oils have become a household name. The company is currently producing oil under the
following brand names.
o Sufi Canola Oil

o Sufi Banaspati Ghee
o Sufi Sunflower Oil
o Sufi Soyabean Oil
The Strong market presence with its marketing team and customer support has built a solid
reputation of being committed to their quality. This has led Hamza Vegetable oil to become a
leading manufacture of quality oils.

HABIB OIL MILLS
Habib Oil Mills (Pvt.) Ltd. "HOM" is the largest FMCG Company exclusively in the
vegetable oil & fats sector in Pakistan. The company produces premium brand cooking oils
and hydrogenated cooking mediums, and markets the products through its own distribution
network, which covers almost all commercially viable markets nation wide.
Habib Oil Mills (Pvt.) Ltd. is one of the leading processors and marketer of vegetable oil and
its products. The company sells 52,000 tons of branded consumer packs of cooking oil and
banaspati nationally through a well-established network of 350 distributors. The total
turnover of Habib Oil Mills is Rs. 2 billion. It has grown at the rate of 9-10% per annum for
the last 5 years. It has an 8.8% share of the total branded consumer pack market.
The company covers all major segments of the market. It enjoys an excellent marketing
reputation and is viewed as a professionally managed, ethical company marketing quality
product. There is a growing concern with environmental issues in the organization.
PRODUCTS
The products of Habib Oil Mills include Edible Oil and Banaspati. These products are being
marketed in a variety of sizes and packaging options. Habib has the largest range of products.
Out of all the products offered by the company, Super Habib, Habib Cooking Oil, and Habib
banaspati are all flagship brands. Super Habib and Habib Cooking Oil are the most profitable
brands whereas Habib Banaspati has the highest volume tonnage sales.
• Super Habib
• Habib Cooking Oil
• Habib Banaspati
• Habib Corn Oil
• Nayab, Handi and Mayar Banaspati
• Nayab, Handi and Mayar Banaspati are regional brands of Habib Oil Mills.
• Fryo

ANALYSIS OF THE INDUSTRY USING MICHAEL PORTER’S FIVE
COMPETITIVE FORCES
Potential
Potential
Entrants
Entrants
LOW
MODERATE MODERATE
Industry
Industry
Competitors
Competitors
Suppliers
Suppliers  Buyers
Buyers
Rivalry
Rivalry Among
Among
Existing
Existing Firms
Firms
MODERATE
MODERATE
LOW
Substitutes
Substitutes
Worksheet on Industry Structure

1. Threat of Entrants
Yes No
(+) Moderate (-)
1) Do large firms have a cost or performance advantage in your

segment of the industry? 
2) Are there any propriety product differences in your industry? 
3) Are there any established brand identities in your industry? 
Do your customers incur any significant costs in switching
4) suppliers? 
5) Is a lot of capital needed to enter your industry? 
6) Does the newcomer to your industry face difficulty in
accessing distribution channels? 
7) Does experience help you to continuously lower costs? 
8) Does the newcomer have any problems in obtaining the
necessary skilled people, materials or supplies? 
9) Does your product or service have any proprietary features
that give you lower costs? 
Are there any licenses or qualifications that are difficult to
10) obtain? 
Can the newcomer expect strong retaliation on entering the
11) market? 
12
) Is serviceable used equipment expensive? 
Total 6 6
ANALYSIS
Although this matrix suggests that the threat of entrants is moderate, however, we feel that
factors such as capital requirements (and existing established brands would create problems
for new entrants) have a higher weight age. It is therefore our opinion that the threat of
entrants is low. This alone explains why in recent past we have seen hardly any new
companies entering the edible oil industry.
Low Moderate High

2. Bargaining Power of Buyers
(To what extent are your customers locked into you?)
Yes No
(+) Moderate (-)
1) Are there a large number of buyers relative to the number of

firms in the business? 
Do you have a large number of customers, each with relatively
2)
small purchases? 
Does the customer face any significant costs in switching
3)
suppliers? 
4) Does the buyer need a lot of important information? 
5) Is the buyer aware of the need for additional information? 
6) Is there anything that prevents your customer from taking your
function in-house? 
7) Your customers are not highly sensitive to price 
Your product is unique to some degree or has accepted
8)
branding 
9) Your customers' businesses are profitable 
10) You provide incentives to the decision makers 
Total 5 1 4
ANALYSIS
The table above shows that buyers of the edible oil industry have low to moderate bargaining
power. This is because, there are large numbers of buyers as compared to the producers in the
edible oil industry, and the end consumer to some degree does purchases based on brands
rather than prices, therefore, buyers have little bargaining power. There is however a limit to
which the company can exploit the buyers, for example if Dalda starts charging too higher
price then the buyers would switch brands.
Low Moderate High

3. Threat of Substitutes
(some other product or service that performs the same job as yours)
Yes No
(+) Moderate (-)
1) Substituteshave performance limitations that do not

completely offset their lowest price. Or, their 
performance is not justified by their higher price.
2) The customer will incur costs in switching to a substitute. 
3) Your customer has no real substitute. 
4) Your customer is not likely to substitute. 
Total 4
ANALYSIS
As the table suggests, there is basically no real substitute of the edible oil. The closest
substitute is butter however that poses as a little threat to the industry. And there is very little
chance that consumers would use this substitute.
Low Moderate High

4. Bargaining Power of Suppliers
Yes No
(+) Moderate (-)
1) My inputs (materials, labor, supplies, services etc.) are standard rather

than unique or differentiated. 
2) I can switch between suppliers quickly and cheaply. 
3) I can substitute inputs readily. 
4) I have many potential suppliers. 
5) My business is important to my suppliers. 
6) My suppliers would find it difficult to enter my business or my
customers would find it difficult to perform my function in-house. 
7) My cost of purchases has no significant influence on my overall costs. 
Total 4 3
ANALYSIS
Bargaining power of suppliers is moderate. Companies cannot easily switch from one
supplier to another as they have signed contracts. As producers, there is virtually no
substitute to the inputs that the firm uses.
Low Moderate High

5. Determinants of Rivalry among Existing Competitors
Yes No
(+) Moderate (-)
1) The industry is growing rapidly.


2) The industry is not cyclical with intermittent overcapacity.

Fixed costs of the business are a relatively low portion of total
3)
costs. 
There are significant product differences and brand identities
4)
between the competitors. 
5) The competitors are diversified rather than specialized 
6) Itwould not be hard to get out of this business because there are no
specialized skills and facilities or long term contract commitments,
etc. 
My customers would incur significant costs in switching to a
7)
competitor. 
8) My product is complex and requires a detailed understanding on
the part of my customer 
9) My competitors are all of approximately the same size as I am. 
Total 4 1 4
ANALYSIS
This table illustrates that the rivalry among the firms in the edible oil industry is moderate.
Since no new firms are entering the market, existing firms have targeted specific end
consumers, and unless there is significant price increase, end consumers would not switch
brands easily.
Low Moderate High

Summarized Worksheet
Favorable Moderate Unfavorable
1) Threat of new entrants 
2 Bargaining Power of 
) Buyers
3) Threat of Substitutes 
4) Bargaining Power of 
Suppliers
5) Intensity of Rivalry 
among Competitors
Overall Rating 2 3 0
FINAL ANALYSIS
The porters 5 forces model shows that the edible oil industry is a two star industry; however
we feel that the remaining factors do not show that the industry is un-favorable. We feel that
the current profit margins would remain the same. And existing firms that are doing well
would have no real threat of new entrants and there is no real threat of substitutes.
Rivalry to some degree is non existent, however rivalry would occur when competing firms
target each other target market, there have been one or two occasions where this has
happened but this doesn’t occur in the industry very often.
Since there are very few producers in the edible oil industry as compared to the buyers, and
the general end consumer does look at brand when making a purchase decision rather than
the price, at the same time buyers of this industry have a tendency to switch to other brands if
firms try to exploit them too much. Therefore we feel that buyers have low to moderate
bargaining power.

ENVIRONMENTAL ANALYSIS AND INDUSTRY ATTRACTIVENESS
PEST (Overall Industry)

Political
Political factors play an insignificant role. Even if the government changes the import duty or
tax structure, the increase in cost can be transferred to the consumer; an increase in price
would not result in decrease in sales due to the fact that edible oil has an in-elastic demand.
Also, any changes in the government regulation would affect the entire industry; therefore
the effect is on all firms.
Recently, the government has introduced sales tax on items that are imported, directly on the
port. This reduced the chances of small producers from tax evasion, however they start
smuggling raw materials. Geo-political factors influence greatly (as it does all other
industries), factors such as strike, riots are increasing in this country and they are greatly
affecting the profitability of all industries.
Economic
Economic factors greatly influence the edible oil industry, due to consistent increase in
inflation; the purchasing power of the end consumer is decreasing. The PKR Rs is also
devaluating, on top of that countries from which we import oil raw material (e.g. Malaysia)
have improved economically, their currencies have appreciated, and causing problem for our
local producers as the cost of imports has increased substantially. So companies have found it
difficult to purchase raw materials at high costs and not to increase prices. This has greatly
reduced the profit margin for the industry.
Social
Social factors play very insignificant role in this industry, existing oil producers have not
been able to create that “premium brand” image (one in which snob value cannot be created).
Also, as mentioned before although brands do influence purchasing decision making
however it is not that significant as consumers are becoming more and more price sensitive.
Technological
Technology doesn’t impact highly on this industry, even if firms are able to reduce
production cost, but the main expense comes from purchases of raw material and that cannot
be reduced. Technology has helped (as in the case of Dalda, who has tried to differentiate
themselves but introducing VTF technology) firms create core competencies but that doesn’t
greatly influence the firms profitability as consumers are becoming more and more price
sensitive.
EXTERNAL FACTOR EVALUATION

WEIGHT RATING WTD. SCORE
OPPORTUNITIES
Setting Refineries 0.08 4 0.32
Local production of Raw Material 0.06 3 0.18
Emerging modern trade departmental 0.07 4 0.28
chains like Macro and Metro
Institutional Selling 0.05 3 0.15
People are becoming more health conscious 0.04 3 0.12
Untapped rural Market 0.06 3 0.18
Export potential 0.06 3 0.18
Population growth 0.05 3 0.15
Increase in per capita consumption of edible 0.04 3 0.12
oil
THREATS
Unbranded edible oils 0.05 3 0.15
New entrants 0.04 2 0.08
Lower pricing by competitors 0.05 2 0.10
Intense competition in the industry 0.07 3 0.21
Deteriorated law and order situation 0.06 2 0.12
Declining real purchasing 0.05 2 0.10
Non-availability of basic utilities power 0.05 3 0.15
Political influence is used 0.04 2 0.08
Reduction in the purchasing power of 0.04 2 0.08
people due to inflation
International brands are entering in the 0.04 2 0.08
market
1.00 2.83
ANALYSIS
The average total weighted score of EFE Matrix is 2.83 which is above industry average. It
appears that Dalda is responding in a good way to existing opportunities and threats in the
industry. The average weighted score shows that Company’s performance is good but not
outstanding in the industry.
When we analyze the EFE Matrix by separating the opportunities and threats, we found that
Setting up Refineries and emerging modern trade departmental chains like Macro and Metro
carry more weights and Dalda’s rating to these factors is also very good means Dalda is
taking full advantage to these opportunities. After that, Local production of Raw Material,
Untapped rural Market and Export potential carry .06 weights each and company’s rating to

each factor is 3. These are the areas where Dalda needs improvement to take advantage of the
market opportunities.
When we analyzed the threats we found that the biggest threat in the industry is intense
competition and company’s rating is 3. It shows that competition is the biggest threat for
Dalda (competition from the local as well as from unbranded/ loose edible oil) after that
Deteriorating law and order situation and Non-availability of basic utilities power are also
severe threats face by the whole industry.
STRATEGIES
• Dalda has to focus on the local production of raw materials, because Dalda import the
basic raw material for production- they can enter into joint venture with Malaysian
companies for getting help in the local production and refining of raw material like;
cotton seed, Soya bean etc.
• Untapped rural market is one of the biggest opportunities for Dalda where people still
use unbranded or loose cooking oil- Dalda has to work on the easy availability and
distribution of cooking oil in the rural area/markets.
• The demand of Pakistani cooking oil is high in Asian countries like Afghanistan and
Middle Eastern countries like Dubai, where people know Dalda and also having
emotional attachment with Dalda- in these markets there is a high export potential.
Dalda has to work on the local production of the raw material to have an easy
accessibility of raw material to increase production at a lower cost to meet local
demand and also taking advantage from export potential.
COMPETITIVE PROFILE MATRIX
Dalda Habib Sufi

Critical Success Weight Rating Wtd. Rating Wtd. Rating Wtd.
Factors Score Score Score
Price .20 4 .8 4 .8 3 .6
Competitiveness .15 4 .6 3 .45 2 .3
Market Share .10 3 .3 3 .3 3 .3
Product Quality .20 3 .6 3 .6 4 .8
Promotion Efforts .20 4 .8 3 .6 3 .6
Customer Loyalty .15 4 .6 3 .45 3 .45
Financial Position Institute of Business Management 27
Total 1.00 3.7 3.2 3.05
ANALYSIS
From the analysis of CPM, we found that overall rating of Dalda is better than Habib and
Sufi. In CPM if Dalda’s rating is higher than the competing firms it doesn’t mean that
Dalda is better than the second or third. So, we have to take a look to individual success
factors.
If we take a look to individual factors we found that the price, Market share, Customer
loyalty and financial position is better as compare to competitors. In product quality the
company’s position is same as the competing firms. But in promotional efforts Sufi’s
position is better than Dalda. So, Dalda has to pay more attention to the promotional
efforts.
STRATEGIES
Dalda should increase the frequency of advertisement, to make sure that the target market
gets the exposure. Also Dalda need to keep a track of competitor’s promotional activities.

INTERNAL ANALYSIS
VALUE CHAIN
Human Resource Management
When the Dalda foods got de-merged from Unilever in 2004, 5 departmental heads and a
director straight away joined the new company and apart from them the management of the
new company was given the option of picking the employees working at the plant after they
were given “Golden Hand Shake” by Unilever. This is how Dalda has gotten the advantage
of employing the best skilled workers available in the industry.
Technological Development
Dalda has the plant that manufactures the banaspati which is Virtual Trans-Fat Free (VTF).
Company is providing the best quality product available in the market. Technology which
manufactures VTF is only available with Dalda. Efforts were made in the past by major
competitor like Habib to develop such technology but they could not succeed in developing a
plant that manufactures VTF banaspati.
Procurement
Most of the large companies in the industry purchase their raw materials from the same
suppliers. However “Dalda” employs procedures which help purify the final product. Most of
Dalda’s competitors are not employing these procedures and we feel this is giving Dalda a
competitive edge. Most of Dalda’s consumers are aware of this fact, since most of them
reveal that they purchase Dalda because of its superior quality.
Outbound Logistics
Dalda’s distribution network is one of the biggest strength the company has right now. It has
given the company a superior edge over its competitors. The distribution network has made it
possible for the management to make sure that product is available at every possible place
and at the same time the distribution network is also a very effective one. Ultimate goal is to
have a high product availability which is getting achieved through the well-structured
distribution network
Marketing & Sales
Dalda’s slogan “Jahan Mamta Wahan Dalda” is still in people’s mind and it is the marketing
of the product which has taken the brand to such new heights. The brand awareness is also
very high and this along with the marketing campaigns has played a major role in bringing
such success to the brand. The sales forces that the company has is well trained and has all
the traits that any sales team would require to perform at highest level.

Service
There is “Rabta Advisory Service” which is provided through a toll free number. Through
this service consumer can ask any question regarding the product. Dalda is the only company
in Edible Oil industry which is providing such service to its consumers.
CORE COMPETENCIES
Quality
Dalda is not just meeting the standards which are set by PSQCA but also the more stringent
ones which have been stated by the U.N. It has been learnt that in the recent past the
company has even exported the product to the European countries, which itself is a proof that
Dalda has been able maintain the quality levels which are at par with international standards.
Distribution
Dalda is the only company in Pakistan which has the distribution network spread all over the
country. Most of the brands in the country are either sold in a particular city or in a particular
province and those who have their presence in more than one province either don’t have
presence in all the four provinces and if they have the presence then they are not in every
city. Dalda has the most wide spread and efficient distribution network among its
competitors.
Efficient Supply Chain
The supply chain of the company is very efficient which has made the availability of the
product quite effective.
Strong Brand
Dalda is there in the industry for more than 50 years and has great brand equity. The brand
awareness is around 90-95 %( as been told by an employee).
Competent Sales Team
Sales personnel are always the front-liners for every company. They are the ones who are
representing the company in the market. Dalda is best equipped with the human capital in
sales department. The exponential growth which is been achieved by the company clearly
shows how good is its sales force.

STRATEGIC COST MANAGEMENT
Increased number of Depots

Dalda has increased its depots all over the country. This not only gives them a competitive
advantage but also a cost advantage. Through this large network of depots Dalda is able to
deliver goods to all their distributors quickly and cheaply. They save considerable
distribution/transportation costs, and the distributors stay satisfied with the timely deliveries.
Acquisition
Dalda recently acquired “TULLO”. This move not only helped Dalda to broaden/increase the
number of customers it had, but also helped the company decrease its cost per unit of
production slightly (economies of scale). Previously during certain seasons Dalda had to
increase production, and since it was working at full capacity it had to outsource some of its
production. Due to this the company was incurring huge costs. However after acquiring
Tullo, the company’s costs were reduced, since it no longer had to outsource its operations
any more.
Planning to Develop Logistics Network

The company is planning to buy and develop a logistics network, this way delivery of goods
will become more efficient and company can provide this service to other companies as well.

INTERNAL FACTOR EVALUATION
WEIGHT RATING WTD. SCORE

STRENGTHS
A respectable position in the eyes of 0.10 3 0.30
the consumers
Brand Name 0.05 4 0.20
Dalda’s slogan 0.02 3 0.06
Market leader – not a follower 0.08 4 0.32
Loyal customers 0.07 3 0.21
Production facilities 0.08 4 0.32
Efficient supply chain management 0.12 4 0.48
system
Pricing 0.06 3 0.18
Strong sales and distribution network 0.12 4 0.48
WEAKNESSES
Centralized Decision Making 0.12 2 0.24
Huge amount of Import 0.10 2 0.20
Lack of company-owned R&D 0.08 1 0.08
1.00 3.07

ANALYSIS
The total weighted score of IFE Matrix is 3.05 which is above industry average. It means that
company’s internal position is good. Factors like efficient supply chain management system
and sales and distribution network are getting higher weights and company’s rating to these
factors are also very strong. It appears from this analysis that Dalda is overcoming its
weaknesses quite fairly with its strengths. Such as strong distribution network, production
facilities and efficient supply chain management system.
When we analyzed the weaknesses, centralized decision making and huge amount of import
are the weaknesses that need to be overcome.
STRATEGY
• In order to decrease the amount of import of raw material, Dalda has to be self
sufficient in it. Dalda should enter in joint ventures with raw material producing and
refining companies like Malaysian oil refining companies to get help in cultivating
basic raw material like: cotton seed, Soya bean etc. in Pakistan and also refining it

STRATEGIC ANALYSIS AND RECOMMENDATIONS
GENERIC STRATEGY
ANALYSIS
We feel that Dalda has a large target market. In the edible oil industry, product information
does not play a vital role in influencing end consumer purchasing decision, the two most
important factors that do influence decision making are product price and brand image. We
have observed that Dalda has been able to create a high quality brand image of it.
Companies in the edible oil industry are consistently trying to reduce their cost, but we feel
that reducing cost should not be the primary strategy. As we know that companies that fall in
the product differentiation category consistently try to reduce costs, therefore it is our strong
belief that even though Dalda is trying to develop methods to reduce their expense but their
main strategy would be creating a product differentiation for their brand.
RECOMMENDATION
Keeping in view the current standing of Dalda and the edible oil industry in general, we
would advise Dalda to stay in the broad differentiation strategy and continue to differentiate
itself. By following this strategy Dalda not only differentiate itself but also working on cost
reduction.

SWOT Analysis
STRENGTHS
• A respectable position in the eyes of the consumers:
The Dalda brand is one of the 3 leading top brands in the Country. This is strength for the
company in the market as it gives a respectable position to Dalda in the eyes of the
consumers and ensures brand loyalty.
• Brand Name:
The name “ Dalda” is a great strength for the company as some people buy the product
just because of the name. Dalda has reserved the right for using the name Dalda for itself
through trademark. This prohibits any other company or individual from using the name
Dalda for their products.
Current trademark and license rights in Pakistan only for:

1. Dalda Vanaspati
2. Dalda Melange
3. Dalda Cooking Oil
4. Dalda Planta
• Dalda’s slogan:
Dalda’s slogan “Jahan Maamta, wahan Dalda” (“Mother’s Love is Dalda”) became a
synonym for purity and quality and has been the platform for the brand for many, many
years. It means that Dalda is as pure as a mother’s love. This is a strong message, which
has given Dalda an edge over the competitors. The company has hold true to the message
by maintaining their quality and standards over the years.
• Market leader – not a follower:
Dalda is the overall market leader in the vanaspati and edible refined oils market in
Pakistan as it has a significant market share position both in the edible oil market and
vanaspati market. This has enabled Dalda to be a leader in the market and not a follower.
• Loyal customers:
Dalda enjoys very loyal customers all over Pakistan.

• Production facilities:
Production facilities are situated at a strategic location at Sindh Industrial & Trading
Estate (S.I.T.E.), Karachi near to the Karachi Sea Port to enable easy access to imported
raw material. This cuts down transportation costs for Dalda.
• Efficient supply chain management system:

The Company has an efficient supply chain management system. There is a dedicated
specialized oil-buying department within the Company catering to all the input needs of
Dalda.
• Pricing:
The pricing of Dalda’s is almost equivalent to the pricing of Habib, which is a major
player in the industry. This has given Dalda a similar platform to compete in the industry.
• Strong sales and distribution network:
The company has a very strong sales and distribution network in Pakistan.
WEAKNESSES
• More like a family owned business:
Being a family owned business, although a very professional team of expert looks after
the marketing department, the marketing plan and the final budgets comes from the
owners of the business so some times the marketing department faces problems in
implementing certain decisions which have to be taken immediately in the competitive
environment.
• Centralized Decision Making
As discussed it’s a family owned business, so most of the decision making is centralized.
• Hugh amount of Import:

The Company imports most of its needs for palm oil from Malaysia whereas most of soya
bean oil is imported from South America. This makes Dalda vulnerable to changes in the
conditions of the countries in which its suppliers are situated.
• Lack of company-owned R&D

OPPORTUNITIES
• Setting Refineries
Industry players believe the setting up of refineries would encourage crude edible oil
import, which is much cheaper in terms of cost than the refined product.
• Local production of Raw Material
Now the government is taking steps to grow Soya beans and different type of seeds at the
coastal line of thatta.
• Emerging modern trade departmental chains like Macro and Metro
• Institutional Selling
• People are becoming more health conscious

Now the people become more health conscious and they prefer branded products.
• Untapped rural Market
There is a lot of potential to cater untapped market where people still use unbranded/
loose cooking oil.
• Export potential
There is potential to export in Middle Eastern countries where people prefer strong
established brands like Dalda.
• Population growth
• Increase in per capita consumption of edible oil
THREATS
Unbranded edible oils:
One of the threats for Dalda, are the low category brands which price their products at
much low cost then Dalda but they feature their brand in such a way that the people think
that the brand is very hygienic and nutritious.
• New entrants:

Edible oil industry is a growing market and hence many people are entering the market.
This is increasing competition in the industry.
• Lower pricing by competitors:

Sufi is charging a low price for its product. Although Dalda is well established all over
the country it still needs to be careful of Sufi’s action as it can steal some of Dalda’s
customers.
• Intense competition in the industry:
There is an intense competition in the industry, due to which Dalda has to keep a close
eye on its competitors.
• Deteriorated law and order situation
• Non-availability of basic utilities power
• Weak Infrastructure of the country
• Political influence is used
• Smuggling of unbranded edible oil from Afghanistan
The edible oil businesses were now facing fierce battle with the combined pressure from
smuggled, unbranded and competitive local ghee and cooking oil brands.
• Reduction in the purchasing power of people due to inflation

Consumers might shift to open packet oil due to rise in prices.
• International brands are entering in the market

TOWS
Int STRENGTHS (S) WEAKNESSES (W)

1. A respectable position in the
ernal eyes of the consumers; 1. Centralized Decision
2. Brand Name; Making;
3. Dalda’s slogan; 2. Hugh amount of Import;
Factors 4. Market leader – not a follower; 3. Lack of company-owned
5. Loyal customers; R&D.
6. Production facilities;
7. Efficient supply chain
External management system;
8. Pricing;
Factors 9. Strong sales and distribution
network.
OPPORTUNITIES (O) S-O STRATEGIES W-O STRATEGIES

• -If Dalda improves the
1. Setting Refineries; • -By using efficient
2. Local production of R&D it able to have local
distribution network, Dalda can
Raw Material; production of raw material
increase the market share by
3. Emerging modern trade (W3, O2).
targeting modern trade departmental
departmental chains chains and institutions (S9, O3.O4).
like Macro and Metro; • -If Dalda decrease
4. Institutional Selling; import and focus on local
• -Strong sales and
5. People are becoming production of raw material
distribution and sales network can be
more health conscious; can increase the export (W3,
use to tap rural market (S9, O6).
6. Untapped rural Market; O7).
7. Export potential; • -Dalda’s name and
8. Population growth; image is very reputable in the
9. Increase in per capita international market help Dalda to
consumption of edible get export potential (S7, O1, O2).
oil.
• -Dalda’s production
facility is very strong if it succeeds
to establish local production of raw
material Dalda can further increase
the production of cooking oil (S6,
O2).
• -If Dalda decreases

the price by lowering its cost, able to
get share in the rural market (S8,
O6).
THREATS(T)
S-T STRATEGIES W-T STRATEGIES
1. Unbranded edible oils;
2. New entrants; • Dalda can use its strong sales • If Dalda become self
3. Lower pricing by and distribution to compete with sufficient in raw material
competitors; unbranded oil in rural markets (S9, production, it helps Dalda to
4. Intense competition in the T1). decrease the cost of
industry; production and become
5. Deteriorated law and order • If Dalda decrease its prices by more competitive and strong
situation; lowering its cost, can cope with in the industry (W2, T3, T4)
6. Non-availability of basic the decreasing purchasing power
utilities power; (S8, T9)
7. Weak Infrastructure of the
country; • Dalda should further strengthen
8. Political influence is used its brand name and positioning to
9. Reduction in the increase threat for new entrants
purchasing power of people (S1, S2, T10)
due to inflation;
10. International brands are
• Dalda should decrease the
entering in the market.
prices by lowering cost to make
prices competitive and
reasonable(S8, T3)
• Strong sales and distribution ca

be used to face the competition
(S7, S9, O4)

THE SPACE MATRIX
INTERNAL STRATEGIC EXTERNAL STRATEGIC

POSITION POSITION
Financial Strength (FS) Environmental Stability (ES)
International Economic Instability-4
Return on Investment +4
Liquidity +4 Rate of inflation -4
Debt to Equity +4
Prices of Competitor’s Products -3
Ease of Exit from Markets +3
Competitive Pressures -3
FS Average +3.75
ES Average -3.5
Competitive Advantage (CA) Industry Strength (IS)

Market Share -1 International Growth Potential +4
Product Quality -2 Profit Potential +3
New Product Development -1 Capital Intensity +4
Customer Loyalty -2 Ease of Entry into New Markets +3
CA Average -1.50 IS Average +3.50

Y axis
Financial strength +3.75 Y axis: 3.75+ (-3.5) = 0.25
Environmental stability -3.5
X axis
Industry strength 3.50 X axis: 3.5 + (-1.5) = 2.0
Competitive advantage -1.50

Conservative FS Aggressive
+2
+1
*
CA IS
-1 +1 +2
-1
-2
-3
Defensive ES Competitive
ANALYSIS
Dalda is financially very strong (3.75) and having good competitive advantage (-
1.5) in a growing industry.
Dalda is in an excellent position to use its internal strengths. Dalda is taking full
advantage of external opportunities and overcoming internal weaknesses and
avoiding external threats.
STRATEGIES
• Market penetration and Market development – is a good strategy and this can be
increased by targeting rural markets where people are still using unbranded/ loose
cooking oil. Dalda should use its efficient distribution network to increase market
penetration.

• Product development – Dalda is currently is working on this strategy, recently it
introduced olive oil as people are becoming more health conscious. New product
development is a good strategy. Further new product development can be a good
strategy.
• Backward integration – backward integration is like acquiring supplier as the

suppliers of Dalda are the raw material providers and Malaysian refining companies,
acquiring supplier is a good strategy because raw material costs 70% of total cost of
production. Acquiring suppliers or join venturing with them is a good strategy to
driven out cost and decreasing cost of production.
BCG GROWTH MATRIX

Star
• Dalda Cooking oil

• Dalda MunPasand
• Dalda Olive Oil
These are products which have a large market share in a fast growing industry. Their sales
are consistent throughout the year. Their cash generation is also high and at the same time
has a high growth potential, therefore require larger investments.
Question Mark

• Tullo
This product of Dalda’s requires plenty of additional investment. It was acquired only a few
years ago. Right now it has a small market share in a market with a high growth rate.
Cash Cow
• Dalda Banaspati
This product of Dalda has one of the largest market shares in the category of banaspati.
However during recent years there has not been consistent growth in the industry. And the
company has chosen to decrease its additional investments.
Dog
• Dalda Canola
This is a declining market. Dalda’s product has a low market share in this category. And the
company is not considering heavy investment in this product.
IE Matrix

The IFE Total Weighted Score
Strong Average Weak

3.0 to 4.0 2.0 to 2.99 1.0 to 1.99
High I II III
3.0 to 3.99
Medium IV V VI
The EFE 2.0 to 2.99
Total
Weighted DALDA
Score
Low VII VIII IX
1.0 to 1.99
ANALYSIS
In IE Matrix, Dalda lies in the region of Hold and Maintain. Means that Dalda has to
maintain and hold its current position.
STRATEGIES
• Market penetration
Dalda need to work on market penetration, it should capture rural markets where people still
use loose or unbranded cooking oil. In this why Dalda can further strengthen its position and
increase its market share.
• Product development
Product development is another strategy that Dalda is following. Recently Dalda introduced
olive oil, in order to cater health conscious people. Further product development is a good
strategy to maintain and hold current position.

THE GRAND SRTATEGY MATRIX
RAPID MARKET
GROWTH
Quadra Quadrant I
nt II
DALDA
WEAK STRONG
COMPETITIVE COMPETITIVE
POSITION POSITION
Quadrant III Quadrant IV
SLOW MARKET
GROWTH
ANALYSIS
Dalda is in an excellent strategic position. Dalda should continue its current strategies.
As we discussed earlier:
• Market development,
• Market development,
• Product development,
• Horizontal and
Backward integration is good strategy for Dalda.

THE QSPM MATRIX
QSPM
Strategic Alternatives
Key factors weigh *Strategy Attractiveness *Strategy Attractive
t 1 score 2 ness
stratgey1 score
strategy2
OPPORTUNITIES
Setting Refineries 0.08 3 0.24 4 0.32
Local production of Raw Material 0.06 3 0.18 4 0.24
Emerging modern trade 0.07 - -
departmental chains like Macro
and Metro
Institutional Selling 0.05 - - - -
People are becoming more health 0.04 4 0.16 3 0.12
conscious
Untapped rural Market 0.06 4 0.24 3 0.18
Export potential 0.06 - - - -
Population growth 0.05 3 0.15 4 0.2
Increase in per capita 0.04 4 0.16 3 0.12
consumption of edible oil
THREATS
Unbranded edible oils 0.05 4 0.2 3 0.15
New entrants 0.04 2 0.08 4 0.16

Lower pricing by competitors 0.05 3 0.15 4 0.2
Intense competition in the industry 0.07 4 0.28 3 0.21
Deteriorated law and order 0.06 3 0.18 2 0.12
situation
Declining real purchasing 0.05 3 0.15 4 0.2
Non-availability of basic utilities 0.05 2 0.1 4 0.2
power
Political influence is used 0.04 2 0.08 4 0.16
Inflation 0.04 3 0.12 2 0.08

International brands are entering 0.04 2 0.08 3 0.12
in the market
STRENGTHS
A respectable position in the eyes 0.10 3 0.3 4 0.4
of the consumers
Brand Name 0.05 3 0.15 4 0.2
Dalda’s slogan 0.02 - - - -
Market leader – not a follower 0.08 - - - -
Loyal customers 0.07 3 0.21 4 0.28
Production facilities 0.08 2 0.16 4 0.32
Efficient supply chain 0.12 4 0.48 3 0.36
management system
Pricing 0.06 2 0.12 4 0.24
Strong sales and distribution 0.12 4 0.48 3 0.36
network
WEAKNESSES
Centralized Decision Making 0.12 - - - -
Huge amount of Import 0.10 1 0.1 4 0.4
Lack of company-owned R&D 0.08 1 0.08 4 0.32
Sum Total Attractiveness 1.0 4.63 5.66

Score
*Strategy 1: Market penetration, capturing the rural markets of Pakistan where people still
use unbranded / loose cooking oil for cooking.
*Strategy 2: Joint ventures with Malaysian companies for the production and refining of raw
material, in this way Dalda can reduce its cost of production, because raw material costs 70%
of total cost of production.
ANALYSIS
From the QSPM Matrix, it is found that strategy: 2 is more attractive as the sum total score of
the strategy: 2 is 5.66.
STRATEGY 2

Joint ventures with Malaysian companies for the production and refining of raw material, in
this way Dalda can reduce its cost of production, because raw material costs 70% of total
cost of production.
Through this strategy Dalda can easily get raw material as the raw material of cooking oil are
cotton seed, Soya beans etc are not easily available in Pakistan by joint venturing with
Malaysian companies for the production and refining of raw material. Dalda will be to reduce
the cost of production and make the prices more reasonable in the market.
In this way Dalda can also increase its market penetration, by increasing production and
lowering the prices.
STRATEGIC IMPLEMENTATION
Strategy implementation is the most important area of the whole
strategic management process. 99% of the strategies fail at the
implementation stage. Just being able to devise bold new
strategies to outperform the competitors is not enough. The
strategic vision has to be translated into concrete steps & the
internal processes and management system have to be aligned
accordingly.

THE COMPONENTS OF STRATEGIC IMPLEMENTATION
• Building an organization with the competencies,

capabilities and resource strengths to carry out the
strategy successfully
• Developing budgets to steer ample resources into critical

value chain activities.
• Creating Strategy Supportive Structure
• Creating a Strategy-supportive work environment and

corporate culture
• Pitfalls of Strategy Implementation
BALANCED BUSINESS SCOREBOARD
Initiative
Acquiring Tullo
Objective Measure Target has helped Dalda
Financial 1. Increase profits 1. Capturing more Increase profits by to broaden its
& ROI rural markets. 15% market share and
2. Drive out cost to increase profits.
•
increase profits.
Objective Measure Target Initiative

1. Increase 1. Increase the 1. Increase in sales 1. Bring Prime in
Customer volume by 25% by
customer base. institutional 16 Kg tin.
selling. June, 2008. 2. Introduce Sales
2. Take advantage Promotion
of International schemes for
modern trade Target modern trade
chains. 1. Increased chains.
one-to one
Measure contact at all
Learning Create a levels;
& Growth supportive 2.
workManagement Real time
Institute of Business 52
environment & communication.
corporate culture. 3. Collective
decision making
•
Objective Measure Target Initiative
1. Forward Acquire a transport Drive out costs. 1. Acquire a
Internal integration company and logistics
processes 2. Lower establish logistics company.
production network to drive
costs/ process out cost &
efficiency. decrease cost of
production.
Objective Initiative
1. Continuous Empowerment.
training and 2. Leading by
development example.
2. Bring in R&D 3. Restructuring of
3. Organizational Human Resource
culture which department and
encourages change policies.
and development.

Balanced Scorecard aligns organizations to new strategies: away from the
historic, short-term focus on cost reduction and low-price competition, and
toward generating growth opportunities by offering customized, value-added
products, and services to customers.
• Financial: How does Dalda look to shareholders?

• Customers: How do customers see Dalda?
• Internal process: What must we excel at?
• Innovation and Learning: Can we continue to improve and create value?
Diagnostic Survey of Primary and Secondary Management

Practices
Strategy Inferior Average Superior
The company has a clearly articulated and 5

widely understood strategy. 1 2 3 4
The company has strong external antennae

and quickly anticipates external shocks, 5
1 2 3 4
emerging opportunities, and market
downturns.
The company has a very good
understanding of its competitors and can 5
1 2 3 4
anticipate competitors’ moves.
The company is focused on
extending/improving its core business or 5
1 2 3 4
businesses and is committed to growing
them aggressively.
Subtotal of Strategy score: 16

Inferior Average Superior
Execution
The company’s products and services 5

1 2 3 4
consistently meet customer expectations.
The company consistently improves 5

1 2 3 4
employee productivity.
The company’s programs and initiatives 5

1 2 3 4
consistently achieve desired outcomes.
The company’s IT systems enhance its 5

1 2 3 4
ability to execute its value proposition.
Subtotal of Execution score: 16
Culture Inferior Average Superior
The company sets demanding performance 5

standards for all of its employees. 1 2 3 4
The company consistently raises the 5

performance bar. 1 2 3 4
The company’s culture is exciting, 5

engaging, and fun. 1 2 3 4
The company has clear values that people 5

in the company abide by. 1 2 3 4
Subtotal of Culture score: 11

Organizational Structure Inferior Average Superior
The company makes decisions quickly. 5

1 2 3 4
The company minimizes bureaucracy. 5

1 2 3 4
The company’s business processes are 5

simple. 1 2 3 4
The company effectively cooperates across 5

the organization. 1 2 3 4
Subtotal of Organizational Structure score: 13
Talent Inferior Average Superior
The company has great “talent” and “bench 5

strength” at each position. 1 2 3 4
The company successfully develops talent. 5

1 2 3 4
The company designs jobs that intrigue and 5

challenge talented employees. 1 2 3 4
The company’s senior management is

personally involved in recruiting and 5
1 2 3 4
developing talent.
Subtotal of Talent score: 15
Quality of CEO/Board Inferior Average Superior

Leadership
The CEO is uncanny at spotting 5
opportunities and problems before others. 1 2 3 4

People at all levels of the organization feel 5
connected to the CEO. 1 2 3 4
The CEO matches words with actions 5

(“walks the talk”). 1 2 3 4
The company’s board members know the

business and have a significant stake in the 5
1 2 3 4
success of the company.
Subtotal of CEO/Board score: 18
Innovation Capability Inferior Average Superior
The company is continually transforming 5

or reshaping its industry. 1 2 3 4
The company’s products, devices, or

innovations are better than those of its 5
1 2 3 4
competitors.
The company does not hesitate to
cannibalize its existing business or 5
1 2 3 4
businesses.
People who have new ideas are respected 5

and enjoy high status in the company. 1 2 3 4
Subtotal of Innovation score: 15
M&A Growth Inferior Average Superior
The company consistently identifies good 5

M&A possibilities. 1 2 3 4
The company rarely overpays for mergers 5

& acquisitions. 1 2 3 4
The company is consistently better than its

competitors at integrating mergers and 5
1 2 3 4
acquisitions.

The company’s mergers and acquisitions
achieve most of their projected cost and 5
1 2 3 4
revenue benefits.
Subtotal of M&A score: 16
TOTAL SCORE: 113
EVALUATION OF DIAGNOSTIC SURVEY
BIBLIOGRAPHY

Dalda SM Report

Caricato da

Informazioni sul documento

Descrizione originale:

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Dalda SM Report

Caricato da

Copyright:

Formati disponibili

TABLE OF CONTENTS

Institute of Business Management 1

Total Consumer Cooking Fats & Oils Market

Institute of Business Management 2

 Ghee (75.33%) with a total consumption of 1.75 Mil tons.

LIST OF ALL PLAYERS:

Institute of Business Management 3

Habib Oil Mill - ATM Gases -

Institute of Business Management 4

Current trademark and license rights in Pakistan only for:

HISTORY OF COOKING OIL

Institute of Business Management 5

The Company’s principal products compete in the categories of

Institute of Business Management 6

Dalda …. Our Purpose

Our long-term success requires a total commitment to exceptional standards of performance

Institute of Business Management 7

1. CUSTOMERS: The purpose of Dalda is to serve consumers in a unique and

2. PRODUCTS OR SERVICES: It caters the requirement of everyday namely soap

4. PHILOSOPHY: The philosophy of the company is to provide highest standard of

5. SELF CONCEPT: Total commitment to exceptional standards of performance and

Institute of Business Management 8

DIRECTOR DIRECTOR DIRECTOR DIRECTOR

Institute of Business Management 9

Business Unit Head

Marketing Commercial Factory Development

Institute of Business Management 10

Edible Re fine d Oil Va na spa ti

M aterial Intake M aterial Intake

P hosphoric Acid De-Gumm ing P hosphoric Acid De-Gumm ing

Caustic Soda Neutralisation Caustic S oda Neutralisation

S odium Methylate Interesterification

Bleaching E arth Bleaching Bleaching Earth Bleaching

V itamins flavours etc. Blending V itamins flavours etc. B lending

Institute of Business Management 11

Branded Vanaspati Market

Institute of Business Management 12

OIL COSTING SHEET

Total Product Cost per ton 94% 94

Institute of Business Management 13

Institute of Business Management 14

o Sufi Canola Oil

Institute of Business Management 15

• Habib Cooking Oil

• Habib Corn Oil

• Nayab, Handi and Mayar Banaspati

Institute of Business Management 16

Worksheet on Industry Structure

Institute of Business Management 17

1) Do large firms have a cost or performance advantage in your

Low Moderate High

Institute of Business Management 19

1) Are there a large number of buyers relative to the number of

Low Moderate High

Institute of Business Management 20

1) Substituteshave performance limitations that do not

Low Moderate High

Institute of Business Management 21

1) My inputs (materials, labor, supplies, services etc.) are standard rather

Low Moderate High

Institute of Business Management 22

1) The industry is growing rapidly.