PROJECT OF STRATEGIC

MANAGEMENT ON
“SITARA CHEMICAL
INDUSTRY”
Contents
 Introduction & history
 Vision & mission
 SWOT
 Formulation (stage #1)
v Input stage
ü EFE
ü IFE
ü CPM
v Matching stage
ü SWOT
ü IE MATRIX
ü SPACE MATRIX
ü BCG MATRIX
ü GRAND MATRIX
v Decision stage
ü QSPM
 Implementation (stage # 2)
 Evaluation stage (stage # 3)
INTRODUCTION
Strategic management is all about
vFormulation
vImplementation
v& evaluation of strategies
 So our project will revolve on these
critical parameters.
Strategic Management
vStrategy Formulation
 Input /action stage
 Matching stage
 Decision stage

vStrategy Implementation
vStrategy evaluation



STAGE # 1
INTRODUCTION
 Introduction of Sitara
Chemical
q 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.
q
q 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 company’s 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

ØLargest manufacture(caustic
soda)
ØNeed Sizable Market to
ØLargest Shareholder Sustain
ØAdvance Technology ØLack of Operations in Abroad
ØPlant Infrastructure ØRelying on Permanent
ØStrong Management Customers
Ø
ØStrong Brand name
Ø Financially Sound

Opportunities Threats
ØCompetitors
ØIncrease Production Capacity ØEconomic Environment
ØIncrease Product Line ØEnergy Crises
ØTaking Advantage of Geographic ØThreat of Stakeholders
position
ØUnstable Law & Order Situation
ØProvide Online Customer
Service & Ordering System
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

 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

 CPM
(COMPETITIVE PROFILE
MATRIX)
Critical success factor SITARA chemicals
ENGRO chemicals
ITTEHAD
weight
Chemicals
Rating Score Rating Score Rating Score
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


Largest manufacture(caustic soda)  Need Sizable Market to Sustain

Largest Shareholder  Lack of Operations in Abroad
Advance Technology 

Plant Infrastructure  Relying on Permanent Customers

Strong Management 

Strong Brand name

TOWS  Financially Sound

MATRIX

Opportunities – O SO - strategies WO – strategies

Increase Production Capacity (S4, S5,S7,O1,O2) (W2,W3,O3)
Increase Product Line
(Add new product line ) (Geographic expansion )
Taking Advantage of Geographic
& purchase land to build new plant) (W1,O1,O2)


position (S1,S2,S6,O3) (Need to improve infrastructure)

Provide Online Customer Service &
(Enter in new market)
Ordering System

Threats - T ST – strategies WT – strategies

Competitors (S1, S5,S6, T1,T4)

Economic Environment (stable environment & Compete (W2,T1)



Energy Crises competitors by taking advantage of (Launch products in other

Threat of Stakeholders management & brand name ) geographical areas)
Unstable Law& Order (S3,T3)

(Install & update new technology)

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
Control over suppliers and distributors -3 Resource Utilization +5
Capacity utilization +4
Technological know-how +5

Total -11 Total +28

Average -2.2 Average
+4.67
 FS
+6 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
ES
INTERPRETATION
Ø 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
EF E TOTAL WEIGHTED SCORE 3 . 2

Strong 3.0 – 3 . 09 Average 2.0 – 2.99 Weak 1.0 – 1.99

4.0 4.0 3.0 2.0

I ii iii
High
3.0 – 4.0
Sitara
3.0 Chemicals
iv V Vi
Medium
2.0 – 2.99
2.0
vii viii ix
Low
1.0 – 1.99
1.0
INTERPRETATION
Ø 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

Sitara Chemical

Strong competitive
Weak competitive

Quadrant III Quadrant IV

position

position
Slow market
growth
INTERPRETATION
Ø 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 DEVELOPMENT
MARKET
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 DEVELOMENT
MARKET
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
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.