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STRATEGIC MANAGEMENT

NCBA&E
(National College of Business
Administration & Economics WCC)

A Project On

A STRATEGIC MANAGEMENT PLAN FOR RAJPUTANA CORPORATES NEW PRODUCT

PIKACHU
AN ENERGY DRINK

NCBA&E

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STRATEGIC MANAGEMENT

Project Advisor

Prof. FAISAL AKRAM


Department of Business Administration
2017

NCBA&E

Session 2013-

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This write-up has been prepared and submitted to fulfill the partial requirement for
the Bachelors Degree Of Finance & Accounts.

Submitted by:
No.

Student Id.

Student Name

1.

BS-FA02-10

Faria Anwaar

2.

BS-FA02-01

Asma Khan

BS-FA02-09

Saud-Ur-Rehman

3.

Approved by:

Prof. FAISAL AKRAM

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Signature

STRATEGIC MANAGEMENT
NCBA&E

NCBA&E

JULY 27, 2016.

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STRATEGIC MANAGEMENT

UNDERTAKING
The project has been carried out by FARIA ANWAAR (BS-FA02-10), ASMA KHAN (BSFA02-01) & SAUD-UR-REHMAN (BS-FA02-09) as a partial fulfillment of the requirement for
the Bachelors degree of Finance & Accounts from NATIONAL COLLEGE OF BUSINESS

ADMINISTRATION & ECONOMICS, WEST CANAL CAMPUS.

COPYRIGHT
All copyright and privileges are reserved by the Department of Business Administration.

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ACKNOWLEDGMENT
First of all, we are grateful to ALMIGHTY ALLAH for grant of endurance and patience
required in carrying out the Project. We are also thankful to our respected and capable
teachers for their timely advice and cooperation. We are also grateful to our loving parents,
for the prayers and encouragement that helped us at every stage of the Project.

The project was carried out under the able guidance of Prof. FAISAL AKRAM, a true
professional who has excellent command over the subject. He helped us to conceive the
project to start with and later-on answered my numerous queries and enabled us to complete
the project. We owe him our thanks for his precious time and attention.

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DEDICATION
We dedicate this project to our loving parents, whose prayers are always with us. We dedicate
this project to all the teachers in our entire educational tenure. Along with all, we bestow our
project to some special personalities, whose help led us towards the completion of this
project.

DECLARATION
This project is the result of indigenous efforts and this will not be presented in any other
University/Institute for any other degree or qualification.

FARIA ANWAAR
ASMA KHAN
SAUD-UR-REHMAN

TABLE OF CONTENT

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1.

Executive Summary...................................................................................................10

2.

Industry Profile...........................................................................................................11

3.

The Rajputana Corporate.........................................................................................12

4.

Projected Mission & Vision.......................................................................................14


i.

Mission.......................................................................................................................14

ii.

Vision.........................................................................................................................14

iii.

Tagline........................................................................................................................14

5.

The Product................................................................................................................14

6.

The External Analysis................................................................................................15


i.

Demographic Segment...............................................................................................16

ii.

Political Segment.......................................................................................................16

iii.

Economic Segment....................................................................................................16

iv.

Socio-cultural Segment..............................................................................................17

v.

Technological Segment..............................................................................................17

7.

Internal Analysis.........................................................................................................18
i.

a.

RCs Resources, Tangible And Intangible Product....................................................18


Tangible Resources Of RC......................................................................................18

i.

Financial Resources...................................................................................................18

ii.

Organizational Resources..........................................................................................19

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iii.

Physical Resources.....................................................................................................19

iv.

Technological Resources............................................................................................19

b.

Intangible Resources Of RC....................................................................................19


i.

Human Resources......................................................................................................19

ii.

Innovation Resources.................................................................................................20

iii.

Reputational Resources..............................................................................................20

c.

Departments Of Rajputana Corporate..................................................................20


i.

Administration Department.......................................................................................20

ii.

Distribution Department:...........................................................................................20

iii.

Human Resources Department..................................................................................20

iv.

Marketing Department...............................................................................................21

v.

Management Department...........................................................................................21

vi.

Manufacturing............................................................................................................21

d.

Core Values...............................................................................................................22
i.

Energy........................................................................................................................22

ii.

Responsibility............................................................................................................22

iii.

Morality......................................................................................................................22

iv.

Cooperation................................................................................................................22

e.

Organizational Goals...............................................................................................22
i.

Individuals And Organizational Leadership..............................................................22

ii.

Business Leadership...................................................................................................22

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iii.

Store Network............................................................................................................23

iv.

Operational Excellence..............................................................................................23

v.

Supportability.............................................................................................................23

8.

Application Of Taylors Theory................................................................................23

9.

The SWOT Analysis...................................................................................................24

a.

Strengths.....................................................................................................................24
i.

Loyal Customers........................................................................................................24

ii.

Most Extensive Beverage Distribution Channel........................................................25

iii.

Sustained Quality & Brand Name..............................................................................25

iv.

Working Environment................................................................................................26

b.

Weaknesses..................................................................................................................26
i.

Less Focus On Small Cities.......................................................................................26

ii.

Brand Failures............................................................................................................26

iii.

Utilization of Resources.............................................................................................27

c.

Opportunities..............................................................................................................27
i.

Bottled Water Consumption Growth..........................................................................27

ii.

Increasing Demand For Healthy Food And Beverages..............................................27

iii.

Enter Into New Market..............................................................................................27

d.

Threats.........................................................................................................................28
i.

Changes In Consumer Tastes.....................................................................................28

ii.

Competition From Pepsi And Coca Cola...................................................................28

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iii.
10.

Local Manufacturers..................................................................................................28
Corporate Strategies..................................................................................................28

i.

Vertical Integration.....................................................................................................28

ii.

Backward Integration.................................................................................................29

iii.

Related Diversification..............................................................................................29

iv.

Concentration Strategy...............................................................................................29

11.

BCG Matrix................................................................................................................29

12.

Application of Fayols 14 Principles of Management.............................................30

i.

Division Of Work.......................................................................................................30

ii.

Authority....................................................................................................................30

iii.

Discipline...................................................................................................................31

iv.

Unity Of Direction.....................................................................................................31

v.

Remuneration.............................................................................................................31

vi.

Centralization.............................................................................................................31

vii.

Order..........................................................................................................................31

viii. Equity.........................................................................................................................32
ix.

Initiative.....................................................................................................................32

x.

Esprit De Corps..........................................................................................................32

13.

Conclusion...................................................................................................................33

14.

References...................................................................................................................34

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1. Executive Summary
In this project we've fashioned a product underneath the already existing company.
The RAJPUTANA CORPORATE is a beverages manufacturing company. They were already
manufacturing fizzy drinks, mineral waters, juices, syrups, malts and squashes. They had
currently launched an energy drink PIKACHU.
This project will allow us to knowledge that how they had stepped into energy drinks
world. We had established a tagline for the merchandise. The purpose of this report is to
gauge how RAJPUTANA CORPORATE had developed strategic intent for his or her new
business following the analysis of external and internal business environments.
We are going to analyze the strategic management method as firm accustomed come
through strategic aggressiveness and earn above-average returns. We are going to discuss the
strategy formulation that features business-level strategy and corporate-level strategy. It
additionally aims to spot market place opportunities and threats.
These all will be aimed within the external atmosphere and to make mind up the way
to use their resources, capabilities and core competencies within the firms internal
atmosphere to pursue opportunities and overcome threats.
As to strengthen this assignment regarding RAJPUTANA CORPORATE, there are
many strategies of gathering and analyzing the information has been used like SWOT
analysis, BCG matrix, the approaches to management and Fayols Fourteen Principles of
Management, Taylors four principles of management and Market Growth Rate.

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2. INDUSTRY PROFILE
The beverage business in Pakistan has become large over the time. The business
delivers soda pops, juices, syrups, milks, malts, mineral waters and squashes. With around
170 units as of now in operation all through the nation, both upstream and downstream
commercial enterprises have developed and are prospering.
There are 34 drink corporates in the nationwide working right now like Coca Cola,
Pepsi, Gourmet, Nestle, Pakola, Murree Brewery, Sheezan, RC and in local Coffee places of
Pakistan and many more, which are exceptionally very much sorted out. Specifically they are
job oriented in nature.
The refreshment business representatives more than 500,000 individuals specifically
and in a roundabout way furthermore boosts numerous other up/down stream commercial
ventures, for example, crown stops, glass bottles, plastic shells, sugar, transport, publicizing
and media, plastic containers and concentrates.
So forth because of this industry an enormous number of outlets or shops are upheld
to produce across the board monetary action in the nation. Sodas market in Pakistan is
becoming quickly. What's more, the carbonated class is the pioneer in the soda pop market
with an offer of 63.7 %.Company Profile

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3. THE RAJPUTANA CORPORATE
The Rajputana Corporate (RC) was initially
presented by Faria, Asma and Saud, the pioneers of
RC in the year 2000 in Lahore, Pakistan. They
initially distributed the item free of expense with a
specific end goal to draw in individuals. Sugary water was blended with the new syrup,
whether coincidentally or something else, creating a beverage that was declared "flavorful
and stimulating".
A topic that keeps on reverberating today wherever RC-Cola is delighted in. Saud-UrRehman the Regional Manager kept business on developing, and in 2011, the primary sweet
fluid assembling plant outside Lahore was opened in Kasur, Pakistan. Others were opened in
Faisalabad and Multan the next year. In 2013, three years after The Rajputana Corporate's
joining, Miss. Asma Khan the Managing Director declared in her yearly answer to share
owners that "RC beverages" is presently served on each and every dining table of Pakistan.
Another building raised in 2013 was committed solely to the generation of new
syrups, malts, mineral waters, more kinds of flavors of RC beverages and squashes. But a few
others failed and didnt survive.
RC in the year 2016 and his over sixteen years of initiative took the business to
unparalleled statures of business achievement, making RC refreshments a standout amongst
the most perceived and esteemed brands around the Pakistan. They had presented another
caffeinated drink named as Pikachu. Another plant has been set up in Mianwali for this
reason. It's a product line extension.

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Be the extraordinary refreshment organization driving


the business sector, motivating individuals, including esteem through
magnificence.

Construct a reasonable and gainful business through invigorating


shoppers, banding together with clients, conveying better esteem than
shareholders and being trusted by groups.

The Thirst Quencher

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4. PROJECTED MISSION & VISION
I.

MISSION
Our main goal is to bring purchasers quality refreshments that foresee and fulfill their

cravings and necessities through present day innovation and moving workers to be as well as
can be expected keep on providing the best items available.
II.

VISION
We are devoted to maintaining benchmarks, while keeping up the authority position in

the drinks class while conveying unrivaled client administration in an exceedingly effective
and productive way.
III.

TAGLINE
The slogan of the RC is "The Thirst Quencher". It gives the message that at whatever

point you are parched drink any refreshment of RC and it will promptly extinguish your
thirst.

5. THE PRODUCT
Rajputana Corporate has extended its portfolio from frizzy drinks, flavored milks and
malts to a new energy drink Pikachu. Energized beverages are normally a soda pop having
a high rate of sugar, caffeine, or another stimulant, regularly used during or in the sports
activity or as a method for conquering tiredness
Pikachu is an energy drink. Its a non-flavored energy drink. It has a unique stylish
bottle. It is actually caffeinated drink which boosts up the energy. The reason behind choosing
the unique bottle is to set a separate image in consumers minds.

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Pikachu's slogan is "Untamed Energy". This demonstrates subsequent to consuming
the beverage one will get uncontrollably charged and enthused.

6. THE EXTERNAL ANALYSIS


The general environment is composed of extents in broader society that influence an
industry and, indirectly, the firms within it. They group these dimensions into five
environmental segments such as demographic, political, economic, socio-cultural and
technological. These structured segments are external to the firm.

Demographic

Technological

Industry Environment
Threat of new entrants
Power of supplier
Power of buyers
Product substitutes
Intensity of rivalry

Socio-Cultural

Political/Legal

Economic

The challenge to the firm is to scan, monitor, forecast, and assess those elements in
each segment that have great importance in business. These efforts results in appreciation of
environmental changes, trends, opportunities and threats.

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I.

DEMOGRAPHIC SEGMENT
RCs product is for everybody. People from any area, any culture, any age, and any

income group will drink water, will buy milk, will like fizzy drinks and will also need energy
drinks. These are not luxury items which are used by a specific Income groups or age groups.

Nearly all age from young to old people can consume RCs products. For instance,
RC segments into different age groups. For toddlers and aged people, they have RC plain
milk to consume; while for young people they can drink flavored milks, malts, fizzy drinks
and energy drink.

II.

POLITICAL SEGMENT
Political factors are important especially in beverage industry. The company policies

are affected and its budget is also affected. RC provides beverage assurance to provide
guarantee to the consumers that RCs products are manufactured and distributed under the
strictest hygienic and sanitary condition. Besides that, to ensure that consumers do not buy
any fake products, RCs products are always come with the seal of guarantee.

By having the seal of guarantees, consumers are now more confident and trust of
RCs products. Strict quality control played a role in political factor too. It means that RCs
products quality will not be different with other cities in Pakistan. Consumers are guarantees
with full satisfaction of the products all over the Country.

III.

ECONOMIC SEGMENT
Although RC is leading beverage industry only in Pakistan, it shares its knowledge

and expertise with other small and medium companies in Pakistan. It helps entrepreneurs to
compete in the new environment which will ultimately benefit the industry and the economy

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by making the market growth. Besides that, RC also collaborates with local government to
provide technical assistance to farmers in animal farming and fruit farming. The farmer will
get income and RC will get to purchase good and fresh milk to produce flavored milks and
Fruit malts.

IV.

SOCIO-CULTURAL SEGMENT
A healthy drinking water and adequate food supply, is the central of promoting health

and well-being is the focus of every person even these days; whether people tend to value
products that incorporate with them healthy benefits. Obviously, these types of goods are
preferred more than that of junk foods and its relative products.

Moreover, generation Y cohorts, those born from 1980s-2000s, possess characteristics


such as acceptance to change and being technologically savvy. These kinds of characteristics
should match to the firms aggressiveness of using technology especially that this is also the
link of the entry of technology in the Pakistan.

V.

TECHNOLOGICAL SEGMENT

Internet and Mobile Technology is currently growing so rapidly in the market where
almost all of the people nowadays will get contact with it. RC could use this advantage to
benefit them by using technology to promote their products over those advanced technology.
Customer could get any information from their site.

RCs employee uses this internet service to connect to its industry in other cities such
as Faisalabad, Kasur, Multan and Lahore. They did research and development by using the
technology to find more information to satisfy the local tastes and cultural flavour in each

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city market. By understanding what each city asks for, RC could market difference product
according to the customer demand in difference country.

7. INTERNAL ANALYSIS
Here, we will discuss about the nature of RCs firms internal environment analysis.
Evaluate the tangible and intangible resources, which are the sources of the firms
competitive advantages. In this section, we will discuss the techniques firms can use to
identify and evaluate resources and departments and the criteria for selecting core
competencies from among them.

I.

RCS RESOURCES, TANGIBLE AND INTANGIBLE PRODUCT


Resources are the source of the firms capabilities. Resources are bundled to create
organizational capabilities. Some of a firms resources are tangible and intangible. Tangible
resources are assets that can be seen and quantified. Intangible resources include assets that
typically are rooted deeply in the firms history and have accumulated over time. Intangible
resources are relatively difficult for competitors to analyze and reproduce. The types of
tangible resources are financial, organizational, physical and technological. And the types of
intangible resources are human, innovation and reputational.

A.

TANGIBLE RESOURCES OF RC

I.

FINANCIAL RESOURCES

Total Revenue

: Rs. 83.64 billion (2016)

Operating income

: Rs. 12.538 billion (2016)

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Profit

: Rs. 9.487 billion (2016)

Total Equity

: Rs. 62.60 billion (2015)

Total Assets

: Rs. 111.64 billion (2015)

II.

ORGANIZATIONAL RESOURCES

RCs governing body is the Annual General Meeting of shareholders.

Leading the company is the Chairperson of the Board and MD.

III.

PHYSICAL RESOURCES

Malts

Mineral Water

Plain milk

Flavored milk

Fizzy drinks

Energy drinks

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IV.

TECHNOLOGICAL RESOURCES
RC moved from being a technology controlled company that produced beverages for

sustenance, to being a science driven, health and wellness company. Continual involvement
of rapid technological change.

B.

INTANGIBLE RESOURCES OF RC

I.

HUMAN RESOURCES

Approximately 100,000 people have been employed by RC Company all over the
Pakistan.

II.

INNOVATION RESOURCES

RC R&D generates the innovative science and technology needed to build nutritional
and health benefits into products.

III.

REPUTATIONAL RESOURCES

The health and wellness benefits of products from consumer need into research

priorities.
The health and wellness benefits of products to from emerging science into consumer
benefits and services.

C.

DEPARTMENTS OF RAJPUTANA CORPORATE

I.

ADMINISTRATION DEPARTMENT

Its responsibility is to take complex decisions. Like as business expansion, capital


expenditures and to stabilize the working conditions in the organization.

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Miss. Faria is the top head Chair-Person of the company who takes all the decisions
regarding business extension, human investment, capital expenditures and on how to
introduce new strategies to improve the working conditions for the employees.

II.

DISTRIBUTION DEPARTMENT:

RC has outsourced distribution networks to ensure that every day more than 100.000
Bottles of various beverages are transported to customers from their factories and
distribution centers to all over Pakistan.

III.

HUMAN RESOURCES DEPARTMENT

The Company employs around 100,000 people, operates in all over Pakistan.

The training is given to employee as the time passes just to make them enough
compatible with surroundings

IV.

This department hires and fires the employees as per company policies.
MARKETING DEPARTMENT

In market to famous the brand name and to make efficient strategy to meet the taste of
each type of consumers, proper surveys are conducted to ensure quality and likeliness
of consumers.

To increase sales and build an image in the mind of consumer, RC advertises their
product in different ways, as for as Pikachu is concerned company use television,
radio, newspaper, bill board, flex, posters and broachers.

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V.

MANAGEMENT DEPARTMENT

RC has a Board of Directors, led by their Chairperson Faria Anwaar, who is the former
RC CEO.

The day to day management of RC business is taken care by Executive Board


members composed of company executives and department heads. Asma Khan is the
current Managing Director of RC.

The Lahores Regional Manager is Saud-ur-Rehman who take cares the Lahore region
only.

VI.

MANUFACTURING

RC produced malts with fresh fruits. And packed fresh milk collected from farms into
tetra packs. Now they are trying to make energetic drinks with caffeine instead of sugar.

D.
I.

CORE VALUES
ENERGY
We put our hearts and brain into what
we do.

II.

RESPONSIBILITY
We act with high awareness of other's
expectations

and

consider

ourselves

responsible.

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III.

MORALITY
We are open, fair, and moral and we trust and regard each other.

IV.

COOPERATION
We team up for our aggregate achievement.

E.
I.

ORGANIZATIONAL GOALS
INDIVIDUALS AND ORGANIZATIONAL LEADERSHIP
Build a profoundly proficient association
and be the business of decision.

II.

BUSINESS LEADERSHIP
Profitably convey better esteem than buyers and

clients at the ideal

expense to serve.
III.

STORE NETWORK

To be the best in class purchaser request satisfaction suggestion that surpasses client
desires most amazing in quality, least in expense, in a practical, socially capable way.
IV.

OPERATIONAL EXCELLENCE
Create a society of Operational Excellence to boost ceaseless change of our business
procedure and frameworks.

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V.

SUPPORTABILITY
Ensure the long struggle feasibility of our business by being proactive and
imaginative in securing the earth and be perceived as a standout amongst the most
mindful corporate subjects by all partners.

8. APPLICATION OF TAYLORS THEORY


RC has applied Taylors theory in the management of day to day works. They are
working with both modern and old technologies parallel. With the passage of time they are
replacing the old methods with the new ones.

They recruit the employees with a proper method and pass them through training in
order to make them capable of working in the desired conditions. The management
energetically cooperates with the workers so as to ensure that all work is done in accordance
with the principles of the managements that have been developed.

They divide the work and responsibilities almost equally between management and
workers. Management takes over all work for which it is better fitted than the workers.

9. THE SWOT ANALYSIS

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One of the outer dangers is the
new

contestants

which

is

our

shortcoming. Opening hindrances are


moderately low for drink industry. The
other risk is the client changing to
different items. There is very nearly 0
consumer exchanging cost which is our quality. Another danger for the business expansion
could be the requirement of capital for this business.
Certainty is that low capital is required for a product offering expansion and it's an
open door for us. There are increasingly new brands showing up in the business sector with
for the most part lower cost than RC items. These new contestants are the soft spot for our
association. However RC is seen as a drink as well as a brand.
It has an extremely noteworthy piece of the pie for quite a while and steadfast clients
are not liable to attempt brand refreshment. The client dependability is our incredible quality.
A.

I.

STRENGTHS
LOYAL CUSTOMERS
The firm appreciates having a standout among

the most

steadfast customer bunches. RC is getting a charge out

of a positive

picture in the brains of the shoppers. They regularly

imagine

that

it is better in quality as contrast with different competitors accessible in the business sector.

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II.

STRENGHTS
~Loyal Customers
~Broad distribution channel
~Sustained Quality and
brand name
~Working Enviornment

WEAKNESSES
~Less Focus on Small Cities
~Utilization of Resources
~Brand disappointments

OPPORTUNITIES
~Bottled water utilization
~Increasing interest for
nourishment and drinks
~Enter into new market

THREATS
~Changes in buyer tastes
~Competition from Pepsi &
Coca Cola.
~Local Manufacturers

MOST EXTENSIVE BEVERAGE DISTRIBUTION CHANNEL


RC serves everywhere throughout the nation. RC Established broad base which is

helping the association to expand the business volume of the organization.


III.

SUSTAINED QUALITY & BRAND NAME


They have supported Quality certification of the brand that they are putting forth to

clients.

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IV.

WORKING ENVIRONMENT
Another serious quality of RC is the workplace that they are putting forth to their

employees. Because of this environment, the employees that are working here are faithful to
the association and it is bringing about enhancing the inspiration level of the employees,
which at last results in high efficiency and better execution.
B.

I.

WEAKNESSES
LESS FOCUS ON SMALL CITIES
The real shortcoming of the organization is its distribution

channel. It

is one of the fundamental reasons of its moderate advance and low

piece

of the overall industry in this business sector when contrasted with the

competitor.

Because of absence of accessibility of the


less separation from competitors its hard

items and
to

reach

far-

fetched areas.
It has turned out to be extremely hard to catch a major piece of the overall industry.
RC possesses enormous shares in huge urban areas of Pakistan yet in country ranges it needs
behind a ton.
II.

BRAND FAILURES
The firms success of introducing new drinks is weak. Either they arent marketed

well or are not launched after a proper market survey. Many of its introduction results in
failures, for example, squashes.

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III.

UTILIZATION OF RESOURCES
After all having a Research and Development department and not utilizing its

resources is totally ill planning. After rejection of RC squashes it has been proved that RC
didnt utilized its resources fairly.

C.

I.

OPPORTUNITIES
BOTTLED WATER CONSUMPTION GROWTH
Consumption of bottled water is expected to grow both in Pakistan and the rest of the

world.
II.

INCREASING DEMAND FOR HEALTHY FOOD AND BEVERAGES


Due to many programs to fight obesity,

healthy food and beverages has increased drastically.

demand
The

RC

has

for
an

opportunity to further expand its product range with drinks that have low amount of sugar
and calories. RC has already inspired by this opportunity and introduced a caffeinated drink
named as Pikachu in the market.
III.

ENTER INTO NEW MARKET


A huge part of the market is still waiting for first entry. RC can get the advantage of

first entry if it focuses on such backward and small areas.

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D.

THREATS
I.

CHANGES IN CONSUMER TASTES


Consumers around the world have become more health conscious and had reduced

their consumption of carbonated drinks, drinks that have large


and fat. This is the most serious threat as RC is mainly

amounts of sugar, calories


serving

syrupy

drinks.
II.

COMPETITION FROM PEPSI AND COCA COLA


Pepsi and Coca Cola is fiercely competing with RC over market share in Pakistan.

High production capacity of the main competitor Pepsi is a threat for RC, because they are
having a better chance to increase the production and availability of the products and further
increase the market share.
III.

LOCAL MANUFACTURERS

The local manufacturers can also disturb the market share due to their low price
offerings. For example Gourmet spreads the Rumors of RC beverages being Un-Healthy.

10.CORPORATE STRATEGIES
I.

VERTICAL INTEGRATION

RC is using vertical strategy in order to minimize the cost of after production services.
They have outsourced the facility of distribution of the beverages to the retailers and the
wholesalers in order to decrease the cost of transportation.

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II.

BACKWARD INTEGRATION
In this case, RC started RC Enterprises (RCE) and positioned it as an independent

bottling subsidiary of RC. The company would buy other struggling bottlers and resell them
to RC.
III.

RELATED DIVERSIFICATION
RC used this strategy to explore new drink categories, and it is keeping the tradition

of expanding on their current portfolio of brands and products. RC has just introduced
Pikachu an energy drink with its help.
IV.

CONCENTRATION STRATEGY

In this strategy RC has followed a new product in the existing market. They have got
enough shares of consumers in the existing market. It would be easy for them to target the
same market for the new product Pikachu an energy drink.

11.BCG MATRIX
By making the analysis of BCG matrix we came to know that the energy drink
Pikachu is the Question Mark product of the RC in energy drinks market because it has just

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entered in the market and watching the market trends and the RC is deciding how to make
growth by utilization of resources and making strategies according to the situation.

Pikachu

In Pakistan people are not much in to the business of Energy Drinks thats why RC
can make growth in this portfolio. Because there is a potential in the market and more growth
and market share can be captured by making further strategies such as market penetration.

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12.APPLICATION OF FAYOLS 14 PRINCIPLES OF MANAGEMENT


I.

DIVISION OF WORK
Twice a year trainings are given to employees to make them specialized in their field.

Workshops are being arranged for the increase in work efficiency. Proper division of work is
managed by managers.
II.

AUTHORITY
Managers have limited authority. They can only take downward decisions. They are

capable of giving orders, but they have to report to their seniors also.
III.

DISCIPLINE
Bullying or harassing is not allowed with colleagues or coworkers on any forum

either it is in personal or on social media or in the office.


IV.

UNITY OF DIRECTION
Teams with the same objective or same department are working under the direction of

one manager, using one plan. They are only reportable to their only supervisors.
V.

REMUNERATION
Financial and non-financial compensation are given to employees. Like a trip to

Narran or Kaghan with family for good conduct. A cheque of Rs.5000/- is given to employee
directly in case of good performance which results in increasing the returns.

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VI.

CENTRALIZATION
Employees are not included in the decision-making process. Either it is important to

aim for an appropriate balance but it increases conflict among employees and top
management.
VII.

ORDER
Water dispensers with mineral water bottles are placed on each floor in order to

provide healthy drinking water to employees and management. A proper kitchen with full
crockery is provided at each floor of the building just to ease the facility of lunch. Cook,
office boys and sweepers are available at each floor just to provide their facilities to clean and
tidy the surroundings. A clean and tidy environment is provided so that employees can work
satisfactorily.
VIII.

EQUITY
Managers are detained to be fair with employees and compensate them when they are

in problem. Manager handles the staff with tactics so that the discipline could be maintained.
It helps in keeping the working environment productive.
IX.

INITIATIVE
Employees are free to share their new ideas in the suggestions boxes only. They can

take minor decisions regarding production process. i.e. oiling the machinery, daily
maintenance of the machinery etc.

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X.

ESPRIT DE CORPS
RC is totally running on team work. Everybody is working on his place and puts his

efforts to the carry out the project as a team. They move with hands in hands.

13.CONCLUSION
The RC is a very effective company that remains loyal to its customers, while
continuing to meet the ultimate goal of every company, to maximize its profits. RC could do
a better job with the marketing techniques of its company. It will also depend on the
execution skills of the companies and the organizational culture.

RC is local company which came to the stage it is today by gaining superior


competitive advantage over its rivals. It can always improve its products to meet the demands
of more consumers, especially in the untapped market where tastes vary. The related
diversification strategy has been very successful although it may not work for other firms.

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The company is able to create and deliver value not only by offering distinguished
beverages but also gaining effectiveness and efficiency by reengineering its business
processes. By doing all recommendations and follow all these steps of strategic management
processes, we are sure that RC will do better in the future than their competitors.

Might be RC would be the new trendsetter in some criteria and also gain its aboveaverage returns to their company. The target marketing and management group could work
on satisfying more races, cultures, age groups, and people that are in less developed areas.
Every company always has room for improvements, but the RC is not far from perfection.

This empire will continue to be prosperous as long as it continues to put its customers
at the top of its priorities list.

14.REFERENCES

David, F. R. (2009). Strategic management: concept and cases (12th Edition). NJ:
Pearson Prentice Hall.

https://en.wikipedia.org/wiki/Strategic_management
https://balancedscorecard.org/Resources/Strategic-Planning-Basics
https://strategicmanagement.net/
http://www.managementstudyguide.com/strategic-management.htm

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