Company Profile:

Faridpur Sugar Mill is located in Modhukhali of Faridpur district. It was set up by the
Government in 1974-78 at a cost of Tk.144.55 million. Machinery & equipment of the sugar mill
were supplied by M/S. Stork Werks Poor of Holand. The sugar mill started trial production in
1976-77.

Sugarcane crushing capacity of Faridpur Sugar Mills is 1016 M.Tons per day and sugar
production capacity is 10,160 M.Tons per year. Since establishment, the sugar mill has produced
10,427 M.Tons of Sugar per year on average at an average sugar recovery rate of 7.73% from
sugarcane.

Highest sugar production was 16,828 M.Tons in 1994-95.

Total land under Faridpur Sugar Mill ltd. is 83.58 acres as detailed below:
Factory -19.50 acres
Residential Area -19.00 acres
Experimental Farms -18.00 acres
Pond, Railway Siding-17.08
Total -71.58 acres

Total cane-cultivable land in the mill zone of Faridpur Sugar Mill Ltd. is about 35,500 acres of
which 12,500 acres per year on average is brought under sugarcane cultivation. The sugar mill
has contributed Tk.766.10 million to the National Ex-chequer as dividend taxes and duties since
its establishment.
Mission:
To manufacturing high quality sugar and associated products by utilizing leading edge
technology and investing in our people in order to deliver superior customer value, maximize
customer satisfaction.

Vision:
Our aim is to become a top class manufacturer of sugar and associated products.

Core values:
The mission and vision of the company shall be accomplished and realized respectively while
embracing the following core values.
• Integrity
• Professionalism
• Transparency and Accountability
• Customer focus
• Social responsibility

Situation Analysis:
In this paper, we are going to do a situation analysis on Faridpur Sugar Mill Ltd. We will do it by
answering the following questions:

A. How well is the company’s present strategy working?

B. What are the company’s resource strengths and weaknesses and its external
opportunities and threats?
C. Are the company’s prices and costs competitive?
D. How strong is the company’s competitive position relative to its rivals?
E. What strategic issues does the company face?

A. How well is the company’s present strategy working?

We will start our discussion by talking about the company’s present strategies and how well it is
working for Faridpur Sugar Mill Ltd. is a production firm which produces sugar for fulfilling the
local market demand. Basically they are serving to the mass market and distribute the sugar
across the nation. The strategy they are following seems effective which facilitates them to
become one of the leading sugar cane mill.

1. They are one of the leading sugar cane mills.

2. Their production increases over three years of time period.
3. Among all the sugar cane mills of our country they are the leading sugar producer.
4. By creating efficient and effective distribution channel they take the cost advantage over its
rivals
5. Their resources and production capacity increases over the years by implementing fruitful
strategy.
All the evidence stated above indicates that the company’s current strategy working up to the
mark and it does not need any radical changes for the current period.

B. What are the company’s resource strengths and weaknesses and its
external opportunities and threats?

Now we will do a SWOT analysis on Faridpur Sugar Mill Ltd. Before that let us talk about what
it is. A SWOT analysis shows a firm’s strengths, weaknesses and its external opportunities and
threats. It also provides a good overview whether a firm’s business position is fundamentally
healthy or unhealthy..

Strengths:

At first, let us take a look at the company’s strengths which arev stated below:

1. It has a strong foundation.

2. They are highly solvent. As they are government owned, they don’t have to
worry about investment / Fund / Capital.
3. They have strong distribution channel. Moreover, they have efficient work force
at the field level.
4. They have efficient work force. With the help of this work force they are dealing
with a handful of customers.
5. Less carrying cost as they are located near to the capital city.
6. New technology is used by them. (Such as electronic sugar cane crusher, distillery factory)
7. The demand for sugar is everlasting.
8. Our environmental condition is suitable for sugar cane production.
Weaknesses:
A weakness is something a company lacks or does poorly. Faridpur Sugar Mill Ltd. has fewer
weaknesses.
1. Sugar cane supply outdated technology.
2. Unavailability of lands.

Opportunity:
Market opportunity is a big factor in shaping a company’s strategies. For our company there is a
huge market opportunity and it is nothing but the market itself.

1. Government undertook several policies to meet the market demand properly.

2. Government also declared that they are going to form a monitoring board to provide
facilities and guidance to increase sugar production within the nation and become self
solvent.
3. The ongoing increase in demand makes the market more attractive than ever before.

Considering the above factors, we can say that the company can generate huge amount of profit
from the mass local market.

Threats:
Often certain factors in a company’s external environment pose threats to its profitability and
competitive well-being. Here is a list of threats for Faridpur sugar cane mill.

1. Many importers import sugar and then they try to make local market become volatile and
uncertain.
2. Apart from that global sugar price fluctuation also signify that the global market is also
vulnerable and indecisive.
3. Government imposed rules can be a threat for the company. Recently, our Government
acknowledged that private sugar mills will move toward under government direct
supervision and strict parameter.
4. Corruption is another considerable problem that hinders the market turns out to be weak
and less productive.

C. Are the company’s prices and costs competitive?

Now we will talk whether the company’s prices and costs competitive. We know that majority of
the sugar cane mills of our country are state owned and all of these mills operating their business
under same authority and command. So among the public sugar cane mills there are no price
sensitivity exists. In fact all these sugar mills have to sell sugar at a predetermined rate provided
by the management. But in case of private sugar cane mills they try to stay competitive, every
sugar mills has to pay attention to the costs and prices of the products. Private sugar mills
compete with price only among themselves.

D. How strong is the company’s competitive position relative to its

Rivals?

Now let us talk about the company’s competitive position relative to its rivals. As they are
holding the leading position among all the public sugar mill industries, we can say that they are
the market leader. Faridpur Sugar Mill Ltd. has some competitors like privately owned sugar
mills, such as Deshbondhu, Igloo, Fresh, etc. and they are importing the raw materials from
Brazil, India, Myanmar, China, etc that are essential to produce sugar. Considering all its rivals,
we can say that this company is in a better position because they do not need to import the raw
materials from abroad as they produce sugar cane on their own sugar cane field.

E. What strategic issues does the company face?

Finally, we will talk about the strategic issues that the company faces. They are given below:

1. The company’s present strategy is adequate for protecting and improving its market position.
2. Their current strategy is closely matched with their mission.
3. Improving the outdated existing technology and turn it into a significant tool which facilitates
more production.
4. Ensuring continuous improvement in each phase of manufacturing and operational process.

Conclusion:
So far we have done a situation analysis based on five questions. We now know that the
company’s current strategy is working properly and the company is having a higher profit
margin than that of its competitors. We have mentioned the company’s strengths, weaknesses,
opportunities and threats. We also know that they can offer the products at a competitive price.
They are well positioned in this sugar mill industry. Now the company has to watch out for the
threats that may come from the competitors as well as from the Government and act accordingly
in order to stay in business.

Thank You