Contents Table

1. Introduction
2. Vision Statement
3. Mission Statement
4. History of the Organization
5. Strategy Analysis
6. Company Analysis
7. Internal Evaluation Matrix
8. External Evaluation Matrix
9. Competitive Profile Matrix

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 1. Introduction:

Royal fans is the manufacturer of Electric Fans & appliances whose parent company is by Rafiq
Engineering Industries (Pvt.) Limited.

Royal fans is considered as one of the leading brands of Pakistan across the country, and is
considered the leader in technological and product innovation in the fan industry. Royal fans
product range includes: Ceiling fans, pedestal fans, Exhaust fans, bracket fans, stand fans,
ventilation fans, table fans, washing machines, air coolers etc.

2. Vision Statement:

“Attempts to excel in terms of innovation, knowing new technologies with an eye employee
development and the changing needs of customer.”

3. Mission Statement:

Aim to maintain present position, by constantly improving the quality in products and producing
new designs with cutting edge technologies. And to be recognized as a good corporate citizens
and supporting workforce.

4. Brief History:

Rafiq Engineering was established in 1957 by Sheikh Rafiqullah in the city of Gujrat, Pakistan.
The company with the humble beginnings as a small unit in already established fan industry. In
1970, 2nd generation joined in and did all the hard work and set the company’s path to lead the
industry. With the commitment to quality and customer service and Faith in Almighty Allah,
Royal fans buried its feet among the industry leaders. Now Royal fans is exporting its products
to Afghanistan, Iraq, Saudi Arabia, Yemen, Sudan, South Africa etc.

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5. Company Analysis:

5.1. Strengths:
 As an old company it has developed a goodwill in the market of Pakistan.
 Largest market share in the market of Pakistan in Fans Industry.
 Targets all kinds of home appliances, like Washing machines, Air Conditioners,
Spinners, Fans, Room Air Coolers etc.
 Exports around the world mainly markets like Africa, Middle East and Asia.
 Few Loyal employees who are committed to with the well-being of the company.
 Royal fans also benefit from Loyal customers as well.

5.2. Weakness:
 Shortage of skilled labor
 No direct link between Management staff and dealers.
 Lack of good customer service
 No online updates, for updates customers has to contact management directly
 No proper strategies for operating in international markets
 Weak R& D department.

5.3. Opportunities
 Due to low export duty, Royal fans has the opportunity to increase their exports.
 With strong financial position new technology can be used for the products
 With financial strength they can promote them using print and electronic media to
increase sales
 Should make an appearance in the international industrial exhibition to create the
awareness of its brand

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 5.4. Threats
 Current power shortage is a big threat
 Cheap Chinese products
 Lower price products offered by competitors
 Complaints in some SBU’s is a big threat to the brand

Internal Factor Evaluation:

Strengths Weights Rating Score

Large Market Share 0.20 4 0.8
Good Will 0.15 4 0.6
Loyal Employees 0.05 3 0.15
Loyal Customers 0.06 3 0.18
Quality Coverage 0.07 3 0.21
Big Exporter 0.02 3 0.06
Financial Strength 0.03 4 0.12

Weakness Weights Rating Score

Skilled labor 0.07 1 0.07

Low Coordination 0.15 1 0.15

Lack of customer 0.10 2 0.20
care
No online service 0.05 2 0.10
Weak R and D 0.05 2 0.10

Total 1.0 2.74

The weighted score for Royal fans is 2.74 which is slightly above.

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External Factor Evaluation:

Opportunities Weights Rating Score

Increase in Exports 0.05 1 0.05
Purchasing power for 0.15 2 0.30
New technology
Promotion on print & 0.20 2 0.40
electronic media
Take part in 0.10 1 0.10
International Industry
exhibition

Threats Weights Rating Score

Power shortage 0.20 4 0.8

Cheap Chinese 0.15 3 0.45

products
Low prices by 0.10 4 0.40
competitors
Complaints in SBU’s 0.05 3 0.15

Total 1.0 2.65

The weighted response to company’s external environment is just above average.

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Competitive profile matrix

Critical Factor Weights GFC Fans Pak Fan

Ratings Score Ratings Score

Market share 0.35 4 1.4 3 1.05

Financial Strength 0.25 3 0.75 3 0.75

Management 0.20 3 0.60 4 0.80

Advertising 0.15 4 0.60 3 0.45

Price Competitiveness 0.05 3 0.15 3 0.15

Total 1.0 3.5 3.2

GFC fans is more competitive to Royal fans than Pak Fans as its weighted score is higher.

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BCG growth Matrix:

Market Share

High Low

STAR
? Question Mark

Make more Investment Promote & Expand

Cash Cows Dogs

Liquidate

Market Growth Low

Market Share Position

High Low

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Internal External (IE) Matrix:
IFE

4.0 3.0 2.0 1

4.0
1 II III

3.0

IV V VI
EFE

2.0

VII VIII IX

The result of EFE is 2.65 and IFE is 2.74 which puts Royal Fans in quarter V of IE matrix.
Thus, quarter V of IE matrix shows that Royal Fans is not in a strong position rather it is a
position of average response. It should focus on expansion of the business. Company can
penetrate its market, can develop its market, can also develop its products to capture high market
share that increase companies profit ratio and also help to sustain at this stage.

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QSPM matrix
Strategy 1 Strategy 2

Strengths Weights A.S T.A.S A.S T.A.S

Large Market Share .15 3 .45 3 .45
Good Will .10 3 .30 3 .30
Loyal Employees .05
Loyal Customers .05
Quality Coverage .10 2 .20 1 .10
Big Exporter .05
Financial Strength .10 2 .20 1 .10
Weakness
Skilled labor .10 3 .30 3 .30
Low Coordination .05
Lack of customer care .10 3 .30 3 .30
No online service .05
Weak R and D .10
Total 1.0
Opportunities
Increase in Exports .15
Purchasing power for New technology .10 3 .30 2 .20
Promotion on print & electronic media .15 3 .45 3 .45
Take part in International Industry exhibition .10
Threats
Power shortage .20 2 .40 3 .60
Cheap Chinese products .15 2 .30 2 .30
Low prices by competitors .15
Total 1.0 3.2 3.1

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