PROJECT ON
Qarshi Jam e Shirin
An assignment submitted for academic requirement of mentioned subject.
SUBMITTED TO Sir SUBMITTED BY
Business Strategy
Term Project: 2018
University of Central Punjab
UCP Business School
Acknowledgment
In performing our project, we had to take the interview of Group Manager who deserve our
gratitude for helping us. Without his help, this project would not have been completed. While
performing this project we had support of our course instructor Mr. Adeel Younes who guided
and encouraged us through the project. We like to thank all of people who helped us to complete
this project.
Introduction
75 years ago, in Beadon Road in Lahore a clinic was opened by Shifa-ul-Mulk Hakim
Muhammad Hassan Qarshi, He was petitioner of herbal medicine and health supplements. The
clinic was started with the view to provide pure and effective herbal medicines to the general
populace. In 1968 the youngest son of Shifa-ul-Mulk, Mr. Iqbal Ahmed Qarshi after completing
M.S.C in Chemical Engineering, laid the foundations of Qarshi Dawakhana that has now evolved
into Qarshi Industries, a modern and successful company that outweighs by far the expectations
of is original founder. Qarshi Industries is highly rated company in its category in Pakistan. It
has consolidated its image as a quality-conscious company and has, over the year, demonstrated
its firm commitment to quality and strict adherence to international standards. Qarshi takes pride
in maintaining a high quality in its products and superior skills and acquiring the latest in
advanced technology. Qarshi Industries (Pvt.) Ltd has over 260 natural health food products
from pure herbs and plants. They are produced by maintaining the higheststandard of quality and
purity. These include:
Health food supplements
Medicines
Tonics
Syrups
Vision:
Distinctive Leadership in Quality, Human Resource, Research & Development,
Corporate Social Responsibility.
Mission:
To be Premier source of knowledge and Leadership for the Achievement of
Economically, Environmentally and Socially Sustainable Development.
Industry Analysis:
PEST Analyses:
Political:
If we analyses the political situation of Pakistan we can see that it is politically unstable.
Foreigners are reluctant to invest in Pakistan. In recent time Pakistan is becoming stable country.
Pakistan also become the member of WTO (World Trade Organization).
Economical:
If we do the economic analysis we can see that there are high inflation rates in Pakistan and
economic cycle is going in recession stage.
Social:
In Pakistan huge number of people are living under poverty line. Cultural values and norms are
highly celebrated and it creates a high demand for goods and services during any nearing event.
Technological:
The world is technology driven nowadays. For industries technology plays a vital part since it
is in manufacturing sector.
Porter’s Five Forces Model:
Threats of new entrants are high in red syrup industry because people can enter very easily, but
for them exiting the industry is very difficult. Threats of substitutes are very high we can take the
example of Coke and Pepsi. In this industry bargaining power of consumer is moderate.
Bargaining power of supplier is low. Rivalry among competing firms are high to moderate.
Overall if we can see that industry is mature and competitive.
Opportunities:
1. Trend for consuming natural products
2. Increasing demand for herbal products
3. People are becoming more health consciousness
4. Can introduce new beverage drinks.
5. Raw material is cheap because of local production
6. Never ending demand of foods and beverages industry.
Threats:
1. Low entry barriers of industry.
2. Multinational substitutes
3. Uncertainty in currency exchange
4. WTO is making to go global too
5. Political instability
6. Energy crisis
EFE Matrix:
Factors Weight Rating Weighted
Score
Opportunities:
Trend for consuming natural products 0.10 4 0.1
Increasing demand for herbal products 0.10 4 0.4
People are becoming more health consciousness 0.05 2 0.1
Can introduce new beverage drinks. 0.10 3 0.3
Raw material is cheap because of local production 0.10 2 0.2
Never ending demand of foods and beverages industry 0.05 4 0.2
Threats:
Low entry barriers of industry. 0.15 3 0.45
Multinational substitutes 0.10 4 0.4
Uncertainty in currency exchange 0.05 1 0.05
WTO is making to go global too 0.10 2 0.2
Political instability 0.05 3 0.15
Energy crisis 0.05 2 0.1
Total Weighted Score 1 2.65
CPM:
Qarshi Hamdrad Marhaba
CSF Weight Rating Score Rating Score Rating Score
Expertise and 0.17 4 3 1
proficiency in herbal 0.68 0.51
medicine 0.17
Plants and equipment 0.07 3 2 1
for appropriate 0.21 0.14
production levels 0.07
Reputation in fair 0.06 3 4 2
0.18 0.24
dealing ‘b to b’ 0.12
Financial resources 0.18 4 0.72 3 0.54 2 0.36
Research and 0.1 3 4 2
0.3 0.4
development 0.2
Favorable capital 0.13 4 3 1
0.52 0.39
structure 0.13
Distribution network 0.1 4 0.4 3 0.3 2 0.2
Market share 0.14 4 0.56 3 0.42 2 0.28
Foreign operations 0.05 4 0.2 3 0.15 1 0.05
Total 1 3.77 3.09 1.58
Company Analysis
Internal Audit
Marketing
Target Market:
The target market for Qarshi are families of urban population. People concerned about their
health and preferring quality natural products. School, college and university students engaged in
sports activities.
Market Share:
PRODUCT MARKET SHARE (PERCENTAGE)
Jam e Shirin 55
Rooh Afzah 30
Others 15
Promotional Strategy:
They are making new adds, advertising more and trying to build a Top of Mind Recall to make
Jam e Shirin more demandable and either retain its position or grow even more. Although in the
start they were using the Push strategy to increase the sales and penetrate the market.
Finance
Ratios:
Ratios Rs
turnover ratios
fixed asset turnover 1.89
Total Asset Turnover 1.23
profitability ratios
Profit Margin 38%
ROA 46%
ROE 46%
solvency ratios
Equity Multiplier 1
Research & Development:
Qarshi has always been emphasizing on quality which lead to research and development. R&D
Department has developed a complete profile of more than 207 products based on indigenous
knowledge of Tibb-e-Islami. R & D Main role is to provide lead to production dept to pursue
business level strategy.
Human Resource Management:
It administers various benefit programs (health insurance and medical allowances). They also
measure employees work performance against the set objectives and are graded and rewarded
annually according to their performance.
Strengths:
1. Research and Development
2. Brand Recognition
3. Largely Diversified
4. Products are made from natural herbs
5. Easy availability on every retail store
6. Strong Financial and capital resources
Weakness:
1. Low employee motivation
2. High centralization
3. Brand recognition in Sindh is poor
4. No ready to drink beverage
5. Only one production plant in Pakistan
6. Seasonal variation
IFE:
Factors Weight Rating Weighted
Score
Strengths:
Research and Development 0.10 4 0.4
Brand Recognition 0.10 4 0.4
Largely Diversified 0.05 3 0.15
Products are made from natural herbs 0.10 3 0.3
Easy availability on every retail store 0.10 3 0.3
Strong Financial and capital resources 0.05 4 0.2
Weakness:
Low employee motivation 0.10 2 0.2
High centralization 0.15 1 0.15
Brand recognition in Sindh is poor 0.05 1 0.05
No ready to drink beverage 0.05 2 0.1
Only one production plant in Pakistan 0.10 1 0.1
Seasonal variation 0.05 2 0.1
Total Weighted Score 1 2.45
SWOT Analysis
Strengths Weakness
1.Research and 1.Low employee motivation
Development 2.High centralization
2.Brand Recognition 3.Brand recognition in Sindh is
3.Largely Diversified poor
4.Products are made from 4.No ready to drink beverage
natural herbs 5.Only one production plant in
5.Easy availability on Pakistan
every retail store 6.Seasonal variation
6.Strong Financial and
capital resources
Opportunities SO WO
1.Trend for consuming natural products 1.Enhance the operations 1.Make ready to drink carbonated
around the world in foreign market. (S2, beverage. (W4, O4)
2.Increasing demand for herbal products O1) 2.Open production plant in Sindh.
3.People are becoming more health 2.Carry out market (W3, W5, O5)
consciousness campaign for health-
4.Can introduce new beverage drinks. conscious people. (S6,
5.Raw material is cheap because of local O3)
production 3.Introduce Juices. (S6,
6.Never ending demand of foods and O4)
beverages industry.
Threats ST WT
1. Low entry barriers of industry. 1.Build coal plant. (S6, 1.Build more production plants in
2. Multinational substitutes T6) Pakistan (W1, T5)
3. Uncertainty in currency exchange 2.Horizontal integration.
4. WTO is making to go global too (S6, T1)
5. Political instability
6. Energy crisis
Long Term Objectives:
Financial Objectives:
Capture market growth and increase sales and profit margin by 20%.
Non-Financial Objectives:
Capture new segments and create brand loyalty.
Matching stage
Space Matrix:
Axis X Internal Strength Position External Strength Position
Competitive Advantage Industry strength
Product Quality -2 Growth potential +3
Market Share -1 Entry of new firms +4
Brand Image -1 Access to Financing +3
Research and -3 Competition +3
development pressure
Average Score = -1.75 Average Score = +3.25
Total X-Axis Score = +1.5
Axis y Financial Strength Environment Strength
ROI +1 Inflation -6
Leverage +2 Technology -4
Liquidity +3 Demand Elasticity -3
Cash Flow +2 Taxation -4
Average Score = +2 Average Score = -4
Total Y-Axis Score = -2.25
+6.00
Conservative Aggressive
1.5
+6.00
-6.00
-2.25
Competitive
Defensive
BCG Matrix:
Divisions Percent Percent Market Share Industry
Revenues Profit Growth
1.Jam e Shirin 50 60 .55 8
2.Joshanda 30 30 .20 5
3.Herbal medicine 20 10 .03 -0.5
Market Share
1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0
15
1
10
2
Industry Growth
5 60%
30%
0
-5
3
-10
10%
-15
QSPM:
The analysis of QSPM matrix conclude that from set 1 the best strategy would be that Qarshi
should start producing Juices and from set 2 the strategy they should adopt is build a new
production plant in Sindh.
Strategy Implementation:
Set 1
Qarshi represents the quality and providing customer with healthy and natural products. Qarshi
understand that there is seasonal variation, people buy Jam e Shirin only in summers or in
Ramadan which impact their sales to counter that they have to implement some strategy and the
best strategy for them to counter seasonal variation is to introduce a product for all season.
Qarshi is well known for quality had products made with natural ingredients, Qarshi can use that
and introduce juices. They can make use of there brand image well place distribution to
introduce juices in market. To make sure costumer buy their product they have to spend extra on
promotion.
Set 2
Qarshi market in Sindh is very poor they don’t have well set distribution network in Sindh. To
counter that they can make production plant in Sindh. For Qarshi it won’t be difficult task
because of their financial stability, by doing that they can create many job opportunities and it
will help them increase their sales. They can also use market penetration strategy to enter the
market.
Evaluation and Control:
1. Empower managers.
2. Integrate the goals of all the departments.
3. Marketing importance.
4. Encourage creativity and performance.
5. Remove operational bottle necks.
6. Improve incentive and promotion policies.
7. Change of culture
Conclusion:
Qarshi is huge company with the highest market share and the company is still growing. In next
five years if Qarshi made the right choices we can see them the market leader in herbal medicine,
and challenging other juice manufacturing companies. The can also become biggest red syrup
company in Pakistan by the next 5 years if the open more manufacturing plant in another
provinces. The can also increase their market share in next years by promoting other variants of
Jam e Shirin.
While doing this project we learned how to implement strategy in real life. By with real company
understood the business strategy and different matrix used in strategy overall this project helped
us understand how to implement different type of strategy.
