6. Ghandhara Industries Ltd. (GIL), is the exclusive distributor of ISUZU
products in Pakistan, and is part of the Bibojee Group of Companies. GIL
is very proud of their performance in one of the world’s most
competitive trucks and bus market in terms of over loading & fuel
efficiency. Using leading edge engineering and manufacturing
technologies, Ghandhara Industries has developed a reputation for
reliability, durability and cost efficient Light/Medium/heavy Duty trucks
and buses.
7. To assist the society in fight against pollution hazards by introducing
environment friendly vehicles.
To maximize share of Isuzu in Pakistan.
To be a market & customer oriented organization.
To provide effective & efficient after sales services to the customers.
To enhance performance in all operating areas, ensuring growth of the
Company and optimum return to the stakeholders.
To create conducive operational environments for optimum
productivity, job satisfaction, carrier development and well being of
employees.
8. The objectives of Ghandhara Industries Limited are
as under:
Increase Customer Satisfaction Level
Ensure Financial Profitability
Ensure fuel consumption
9. Ensure availability of the right product at the right place and time.
Designing the product line in order to capture the maximum share of
the market.
Ensure nationwide availability through nationwide 3S dealer network.
Complete customer satisfaction through best after-sales support.
Setting up and continuous up gradation of business on modern
professional lines.
Maintaining and retaining best available human resource.
10. PRODUCT POLICY: Continuous liaison with the principals in Japan to
ensure provision of technologically advanced vehicles.
SERVICE POLICY: Carefully designed and properly equipped service centers
to ensure delivering state-of-the-art service facility to its esteemed
clientele.
PRICING POLICY: Continuous product audits and close watch on
competition to price the product accordingly and remain competitive as
well as acceptable to the customer.
SALES POLICY: Selection of technically qualified and renowned
businessmen with strong financial capability to effectively manage the 3S
operations.
MAKRETING POLICY: Continuous and well planned promotional campaigns
throughout the year to strengthen the brand image and reliability.
HUMAN RESOURCE POLICY: Hiring and retaining the best available human
resource with strong emphasis on their continuous development for
continued growth and prosperity.
11. • BOARD OF DIRECTORES
• CODE OF CONDUCT OF BOARD OF DIRECTORS
• TOP MANGEMENT
• CONSITITUES THE TOP MANGEMENT
12. • NATURAL PHYSICAL ENVIORNMENT
• SOCIETAL ENVIRONMENT
• TASK ENVIRONMENT
• FIVE FORCES OF PORTERS
13.
14.
15. External Factor: Weight Rating Weighted
Score
Comments
Opportunities
Vertical integration 0.2 3 0.6 Opportunities to produce
Economic development 0.10 4 0.4 Development work
Environmental friendly engine 0.15 5 0.75 Working with many NGO’s
Differentiate the product 0.05 2 0.1 Established according to need
Threats
Fuel prices 0.25 4 1 Fuel prices is increasing
Inflation in the country 0.14 3 0.42 Economy is instable
Rapid changing in technology 0.10 5 0.5 New innovation
High competition 0.01 2 0.02 Low competition
Over All 1 3.79
18. • MARKETING DEPARTMENT
• FINANCE DEPARTMENT
• HUMAN RESOURCES DEPARTMENT
• LOGISTIC AND OPERATIONS
• RESERCH AND DEVELOPMENT
19. Internal Factor: Weight Rating Weighted
Score
Comments
Strength
Offer variety of services 0.10 3.0 0.30 Offer verity service to customer
Personal selling 0.2 4.0 0.8 Niche marketing strategy
Low labor cost 0.18 3.5 0.63 Low cost of labor
Cost efficient 0.02 2.0 0.04 Provide cost effective trucks
Weakness
Low market capitalization 0.05 2.5 0.125 Because market is mature
Low cash reserves 0.2 5.0 1.0 Due to high guarantees
Weak R & D 0.05 3.5 0.175 low budgeting
Weak management 0.2 5.0 1.0 Due to in transprancy in hiring
Over All 1 4.07
20.
21. • TOWS MATRIX
• INDUSTRY EVALUTION
• STRATEGIC GROUPS
• STRATEGIC TYPES
• HYPERCOMPITION
22.
23. Ghandhara industries is a fragmented industry because it has no clear leadership
in market share in the truck manufacturing industries and it has got many direct
and indirect competitors like Hinopak, Korakaram motors, Master motor
corporation, Biboojee services private limited and Adam motor company etc.
Many of these companies has got market share but especially Hinopak and Adam
motor are the direct competitors of Ghandhara industries. Hinopak particularly
compete with Ghandhara industries and do not allow the Ghandhara industries to
capture the high market share. Ghandhara industries deal with the truck
manufacturing and they are famous for their reliability. Similarly Hinopak and
Adam motors are also famous for manufacturing trucks and its parts.
24.
25. Prospector is companies with fairly broad product lines that focus on product
innovation and market opportunities. This sales orientation makes them somewhat
inefficient. They tend to emphasize creativity over efficiency. We are saying
Ghandhara a prospector because in its initial time they only involve in distribution
of the trucks but gradually they started to manufacture the different parts of the
trucks which their competitor do not manufacturing.
Analyzers are corporations that operate in at least two different product-market
areas, one stable and one variable. In the stable areas, efficiency is emphasized. In
the variable areas, innovation is emphasized. Ghandhara industries can also be
include in analyzer because when they have analyzed that their competitors are
manufacturing the cheaper trucks like Hinopak and Adam motors they make their
trucks reliable for which they are famous for.
26. Ghandhara industry is not in hyper competition because hyper competition results
from the dynamics of strategic maneuvering amongst competitors. It is the
condition of rapid escalation of competition based on price-quality positioning,
competition to protect or invade established product or geographic markets and
competition based on deep pockets (financial capital) and the creation of even
deeper pocketed alliances. Often a characteristic of new markets and industries,
hyper competition occurs when technologies or offerings are so new that standards
and rules are in flux, resulting in competitive advantages and profits resulting from
such competitive advantages cannot be sustained.
29. • using Cost Leadership Strategy that helps in
Provides a defense against competitors
Provides a barrier to entry
Generates increased market share
• our recommendation is follow same
30. • currently focusing on
using concentric (related) diversification
Stability strategies using profit strategies
• Our recommendation
Used a Paused strategy
Work on weak culture and Human Resource
management
31. • Currently focusing on
Marketing strategy
Using R & D
Our recommendation
Market development strategy
Financial strategy
Upgrading the Human resource department
Operational strategy
35. • ANALYSIS OF LIQUIDITY RATIO
• ANALYSIS OF ASSET MANGEMENT RATIO
• ANALYSIS OF PROFITABILTY RATIO
36. Liquidity ratios:
Benchmarks (last three years
average)
2010 2011 2012
Current Ratio
(1.13+1.08+1.05)/3
=1.087
1.13 1.08 1.05
Quick Ratio (0.48+0.66+0.54)/3
=0.56
0.48 0.66 0.54
Inventory to net
working capital
(5.08+5.11+10.69)/3
=6.96
5.08 5.11 10.69
37. Asset Management ratios Benchmarks (last three years average) 2010 2011 2012
Inventory Turnover
(3.30+2.08+2.14)/3
=2.50
3.30 2.08 2.14
Debtor turnover ratio
(22.2+12.64+12.69)/3
=15.84
22.2 12.64 12.69
Creditor turnover ratio
(21.26+10.14+11.44)/3
=14.28
21.26 10.14 11.44
Total asset turnover ratio
(0.74+0.49+0.56)/3
=0.6
0.74 0.49 0.56
Fixed asset turnover ratio
(1.32+1.04+1.25)/3
=1.20
1.32 1.04 1.25
38. Profitability
ratios:
Benchmarks((last five years average) 2010 2011 2012
Gross Profit
Margin
(14.22+10.68+12.01)/3
=12.30%
14.22% 10.68% 12.01%
EBITDA Margin
(11.72+5.81+7.09)/3
=8.20%
11.72% 5.81% 7.09%
Net Profit Margin
(6.5+0.47-1.58)/3
=1.79%
6.50% 0.47% (1.58)%
Return on Equity
(9.28+0.47-1.87)/3
=2.62%
9.28% 0.47% (1.87)%
Earnings per
share
(6.36+0.36-1.46)/3
=1.75
6.36 0.36 (1.46)
