1) Choose a firm with which you are familiar in your local business community.

Answer the
following:

– Is the firm successful in following one (or more) generic (BL) strategies? Why or
why not?

– What do you think are some of the challenges it faces in implementing these
strategies in an effective manner?

Ghani Glass Limited is a company of Ghani Group; a reputed business house of South Asia; based in
Pakistan with interests in containers glass and float glass, automobiles manufacturing/marketing and
mining for silica sand, coal and rock salt. The group carries Over 50 Years of business experience in the
local and International markets, especially in the glass sector. The company features four modern glass
plants in Pakistan producing container glass, float glass and value added glass with annual capacity of
over 300,000 tons.

Corporate Information

Board of Directors

Masroor Ahmad Khan

Non-Executive Director
Chairman, Board of Directors

Atique Ahmad Khan

Executive Director
Chief Executive Officer

Hafiz Farooq Ahmad Executive Director

Ayesha Masroor Non-Executive Director

Rabia Atique Non-Executive Director

Saira Farooq Non-Executive Director

Farzand Ali Executive Director

Mian Zahid Said Independent Director

Key Management

Farzand Ali, FCS Company Secretary

Asim Mahmud, FCA Chief Financial Officer

Adnan Butt General Manager Sales & Marketing

Sajjad Ali Khan National Sales Manager

Ghani Glass Limited is a company of Ghani Group the used the cost leadership strategy. Because they
already have national and international market so they use the strategy of cost leadership so that they
remain the profit maximization and reduce cost. Main focuses in the internal environment of company’s
value chain analysis that give them help them to reduce the cost at every station of manufacturing An
organization's core competencies should be focused on satisfying customer needs or preferences in order
to achieve above average returns. This is done through Business-level strategies. Business level strategies
detail actions taken to provide value to customers and gain a competitive advantage by exploiting core
competencies in specific, individual product or service markets. Business-level strategy is concerned with
a firm's position in an industry, relative to competitors and to five force of competition.

Organizations compete for a wide customer based on price. Price is based on internal efficiency in order
to have a margin that will sustain above average returns and cost to the customer so that customers will
purchase your product/service. Works well when product/service is standardized can have generic goods
that are acceptable to many customers, and can offer the lowest price. Continuous efforts to lower costs
relative to competitors are necessary in order to successfully be a cost leader. This can include:

 Building state of art efficient facilities (may make it costly for competition to imitate)
 Maintain tight control over production and overhead costs
 Minimize cost of sales, R&D, and service.

- What do you think are some of the challenges it faces in implementing these strategies in an
effective manner?

Some of challenges they are facing it includes

How to Obtain a Cost Advantage?

 Determine and Control Cost

 Reconfigure the Value Chain as Needed

Risks

 Technology
 Imitation
 Tunnel Vision

Value Chain – A framework that firms can use to identify and evaluate the ways in which their resources
and capabilities can add value. The value of the analysis lays in being able to break the organization's
operations or activities into primary (such as operations, marketing & sales, and service) and support
(staff activities including human resources management & procurement) activities. Analyzing the firm's
value-chain helps to assess organizations to what you perceive your competitors value-chain, uncover
ways to cut costs, and find ways add value to customer transactions that will provide a competitive
advantage.
Porter’s 5 forces model:

A cost leadership strategy may help to remain profitable even with: rivalry, new entrants, suppliers'
power, substitute products, and buyers' power.

 Rivalry – Competitors are likely to avoid a price war, since the low cost firm will continue to earn
profits after competitors compete away their profits
 Customers – Powerful customers that force firms to produce goods/service at lower profits may
exit the market rather than earn below average profits leaving the low cost organization in a
monopoly positions. Buyers then lose much of their buying power.
 Suppliers – Cost leaders are able to absorb greater price increases before it must raise price to
customers.
 Entrants – Low cost leaders create barriers to market entry through its continuous focus on
efficiency and reducing costs.
 Substitutes – Low cost leaders are more likely to lower costs to entice customers to stay with their
 product, invest to develop substitutes, purchase patents
2) Think of a local firm that has attained a differentiation focus or Cost / Focus strategy. Are their
advantages sustainable? Why? Why not

Nayatel’s FTTH network has transformed Islamabad into one of the most connected and optically
wired cities of the world. In line with traditions of MBL, Nayatel purely focuses on quality and
customer service. In fact, both MBL and NTL have re-written the quality of service parameters in
Pakistani context. As we’ve been a trend setter in broadband, we’ve also set new quality standards
totally aligned with customers’ expectations and requirements. Fair and ethical business is hallmark
of our corporate strategy. Customers’ confidence earned over a decade of hard work is our most
prestigious asset and we will keep going an extra mile to protect this asset. These combinations make
NTL as most trusted and reliable telecom service provider of twin cities. NTL’s team has a passion to
make Pakistan a prosperous nation using modern IT enabled and cutting edge technology as tool for
development. We strongly believe that our country and society can become a great contributor to the
knowledge based economy of 21st century by leveraging the talent and intellect of young generation.
Thus providing an information super highway for this talent to access global knowledge repositories,
business opportunities and contribute towards national development.

Therefore their mission is to become a role model of trust set highest standards of quality and adds
value to the society. That’s why they are working on the strategy of differentiation focus because
there mission is to give to quality services to their customers.

Type Pvt. Ltd.

Industry Telecommunications

Founded 2004

Founder Wahaj us Siraj, Aqeel Khurshid and Saad Saleem

Headquarters Islamabad, Pakistan

Products Optical fiber broadband, Triple play (cable TV, telephony, broadband)

Owner Micronet Broadband

Number of employees More than 1200

Differentiation strategy involves making your products or services different from and more attractive than
those of your competitors. How you do this depends on the exact nature of your industry and of the
products and services themselves, but will typically involve features, functionality, durability, support,
and also brand image that your customers value.

To make a success of a Differentiation strategy some basic requirements

 Good research, development and innovation.

 The ability to deliver high-quality products or services.

 Effective sales and marketing, so that the market understands the benefits offered by the differentiated
offerings.

Value is provided to customers through unique features and characteristics of an organization's products
rather than by the lowest price. This is done through high quality, features, high customer service, rapid
product innovation, advanced technological features, image management, etc.

Large organizations pursuing a differentiation strategy need to stay agile with their new product
development processes. Otherwise, they risk attack on several fronts by competitors pursuing Focus
Differentiation strategies in different market segments.

Advantages of the Strategies

 In the case of focus differentiation, very high prices can be charged. Indeed, these firms often
price their goods far above the general, following a differentiation strategy.
 Firms often develop exemplary expertise about the goods and services that they offer in focused
strategies. In markets where product knowledge is vital, rivals and new entrants find it difficult
to compete with the firms that follow a focus strategy.

Disadvantages of the Strategies

 The limited demand available within a niche is problematic. First, the growth ambitions can get
stymied. Once its target market is served well, expansion might be the only way to grow, and
this needs a new set of skills.
 The niche could get diluted or be taken over by larger players
 Limited demands exist for specialized goods and services, so every potential sale counts.
 The area of focus may be taken over by others or even disappear over time.
3. Think of a local firm that successfully achieved a combination of overall cost leadership and
differentiation strategies. And answer the following:

– What can be learned from this example? Are these advantages sustainable? Why?
Why not?

4) Must introduce the firms. Indicate their products / services and some financial data.

Engro Foods limited introduction:

Engro foods are among the biggest and fastest growing companies in Pakistan with a vision to cater to
local needs with products conforming to global standards. Vision of company will continue to make
investment aimed at impacting lives and delighting consumers each day, in a multititude of ways.
Mission of company is to build branded food business to improve quality of life by offering tasty,
affordable and high nutritional product s to our consumers while maximizing stakeholder’s value.
Objective of company is to supply everyone their favorite dairy products and satisfy the consumer needs
and wants . engro foods second main objective s are to provide profit to the shareholders.

Mr. Dawood is the Chief Executive Officer of Dawood Hercules Corporation Limited. He is the
Chairman of Engro Foods limited, He is also Director on the Boards of Dawood Corporation Private
Limited, Dawood Industries Limited, Engro Corporation Limited, Engro Fertilizers Limited, Dawood
Lawrencepur Limited, Tenaga Generasi Limited, Reon, The Hub Power Company Limited, Hub Power
Holding Ltd and Patek Private limited. Mr. Dawood is also a member of the Young Presidents’
Organization. He joined the Engro Foods Board in 2012.

Abdul Samad Dawood

Our boards of directors who play a critical role in steering the strategic direction of our business include
eight non-executive directors and two executive directors. Members of the board share the collective
responsibility of ensuring that the affairs of the company are managed efficiently whilst adhering to the
highest standards of ethics and integrity.

Fueled by a vision to bring to the fore innovative food products packed with quality, value and nutrition,
Engro Foods made its foray into the consumer foods business in 2006 with the launch of Olper's, our
flagship all-purpose milk, which soon became a house-hold name widely known for its rich, creamy
freshness, high nutrition content and exciting, vibrant packaging.

Since then, we have surpassed all expectations and given the foods business in Pakistan a new direction
and a different spin with brands that go beyond the conventional and the ordinary by setting new
standards in product innovation.

As we continue to deliver excellence, Engro Foods will continue to bring premium food brands in the
market that will exceed consumer expectations in every way, every step of the way...with firm emphasis
on our passion for innovation and promise on quality.

our values

At Engro, we support our leadership culture through unique systems and policies which ensure open
communication, foster an environment of employee and partner privacy, and guarantee the well being and
safety of our employees.

Our core values form the basis of everything we do at Engro; from formal decision making to how we
conduct our business to spot awards and recognition. At Engro we never forget what we stand for.

Following are our core values:

Ethics and integrity

Health, safety and environment

Innovation and risk-taking

Our people

Community and society

Consumer centric

Products of Engro food:

Products of Engro food are

 Olper’s milk
 Low fat milk
 Cream
 Olper’s lassi
 Olper’s tarkka
 Dairy omung
 Ice cream
 Juices

Financial data:

Balnce sheet

Income statement

Cash flow

Earnings per share

Category of share holder

Market value of share

Net cash flow from operating activates

Financial Ratio
Comprehensive income