2024

IMPROVEMENT
PLAN
SMEDA ITC GRASP

THE NATURAL FIBER

COMPANY
PREPRARED BY: ENGR. SYED RIZWAN ALI
Table of Contents
Executive summary ......................................................................................................................... 2
Introduction .................................................................................................................................... 3
Key Trends: ............................................................................................................................... 4
Objectives to achieve with this diagnostic assessment ................................................... 11
Methodology................................................................................................................................. 11
Sustainability performance: ................................................................................................... 14
Other drivers of MSME competitiveness: ............................................................................ 14
Scoring system: ....................................................................................................................... 14
Compare your scores ............................................................................................................. 15
Theoretical Basis .................................................................................................................... 16
DIAGNOSTIC – FINDINGS .............................................................................................................. 17
Country (from desk review)................................................................................................... 17
Sector (from desk review) ..................................................................................................... 19
Enterprise (from diagnostic tool) .......................................................................................... 21
SWOT analysis ....................................................................................................................... 26
General (Competitiveness) ............................................................................................... 29
Export Readiness ............................................................................................................... 33
Sustainability ....................................................................................................................... 37
Others ........................................................................................................................................... 39
Strategy ......................................................................................................................................... 41
Setting KPIs and targets ....................................................................................................... 52
Monitoring and evaluation plan ............................................................................................ 54
Annex I ...................................................................................................................................... 61
Annex II ..................................................................................................................................... 62
Annex III .................................................................................................................................... 63
Executive summary
The Natural Fiber Company, established in 2022 and located in Pir Jo Goth, Pakistan,
specializes in the manufacture of textiles, including cordage, rope, twine, and netting. The
company is dedicated to sustainable practices, utilizing banana fibers to produce eco-
friendly and naturally antimicrobial products. With a team of experienced textile
professionals, the company aims to address the growing global demand for sustainable
textiles. Company’s strategic, marketing, production, and resource management
competences and its strengths, such as its unique product line and experienced team,
while also identifying areas for improvement, including market awareness and production
scaling challenges. The Natural Fiber Company can improve its market positioning and
operational efficiency, contributing to its long-term growth and success. It has a strong
foundation and significant potential for growth in the sustainable textiles market. By
addressing the identified weaknesses and leveraging its strengths, the company can
enhance its competitiveness, meet the demands of its market, and contribute to a more
sustainable future. The implementation of the suggested improvements will be crucial in
positioning The Natural Fiber Company as a leader in the eco-friendly textile industry.

Furthermore, the sustainability assessment, with an overall score emphasizes the

company's potential in environmental sustainability but highlights gaps in social
sustainability and governance practices. To address these challenges, the report
recommends developing a comprehensive Competitiveness Improvement Plan (CIP),
integrating digital technologies, fostering a culture of innovation, and enhancing
governance frameworks.

Natural Fiber Company, by leveraging its unique strengths and addressing identified
weaknesses, can significantly enhance its market position and operational effectiveness.
The implementation of targeted capacity-building activities, combined with a strategic
focus on sustainability and digital transformation, will be crucial in driving the company's
future growth and resilience.

There are four competences and 2 performance criteria on which basis diagnostic report
is developed.

i. Four Competencies
1. Strategic Competence
2. Marketing Competence
3. Production Competence
4. Resource Management Competence
 ii. Two Performance Criteria
1. Technical Performance
2. Sustainability Performance

Results of data analysed show that technical performance is below average and
sustainability performance is average which means in technical performance, SME has
significant competences that require development or improvement while in sustainability
performance, SME is generally operating at a satisfactory level. The report finds the
prospects of the company in its current position need improvement.

Introduction

The Natural Fiber Company is at the forefront of sustainable textile innovation, dedicated
to revolutionizing the industry with eco-friendly materials. Specializing in the production
of Banana Fiber and Yarn, our company harnesses the power of waste banana stems, a
natural byproduct of banana cultivation, to create high-quality, sustainable textile
products. Founded on the principles of environmental stewardship and ethical practices,
The Natural Fiber Company is committed to reducing the carbon footprint and promoting
biodiversity.

Their fibers are naturally anti-microbial and offer a greener alternative to synthetic
materials, aligning with the values of consumers who prioritize sustainability and
ecological well-being. With a skilled team of textile professionals boasting over 20 years
of industry experience, we are not just selling products; we are advocating for a cleaner
planet and a more responsible fashion industry.

Operations at The Natural Fiber Company extend beyond just production; they are
pioneers in environmental advocacy within the textile sector. Company’s commitment is
to transparency and sustainability at every step of the supply chain from sourcing
materials to delivering finished goods. They collaborate closely with local communities,
ensuring that our practices not only preserve but enhance the social and economic well-
being of the regions they operate in.

Research and development team continuously explores new technologies and methods
to improve the efficiency and environmental impact of their production processes.
This dedication to innovation has led to develop a range of banana fiber products that
are not only sustainable but also superior in quality and durability compared to traditional
materials. At the Natural Fiber Company believes that the future of fashion lies in
sustainability.
 By choosing their banana fiber products, their customers contribute to a movement that
supports environmental conservation, promotes ethical labor practices, and leads the
charge towards a more sustainable and equitable global textile industry. They want to
Join everyone in weaving a better future, one thread at a time.

Key Trends:
The Natural Fiber Company stands out in the textile industry by embracing three key
trends that exemplify its commitment to sustainability and innovation. First, their
dedication to organic and sustainable practices is evident through their use of renewable
banana fibers and eco-friendly production methods, which minimize environmental
impacts while enhancing product quality.

Secondly, their strategic adoption of advanced technologies integrates state-of-the-art

machinery and innovative techniques, improving the functional properties of textiles and
overall production efficiency. Lastly, their focus on e-commerce and direct-to-consumer
sales has revolutionized the way they connect with customers. By selling directly through
their online platforms, they offer a transparent and personalized shopping experience that
not only reduces their carbon footprint but also strengthens community engagement.
These strategies reflect The Natural Fiber Company's firm commitment to fostering a
greener, more sustainable textile industry.

1. Organic and Sustainable Practices: The Natural Fiber Company leads the textile industry
in embracing organic and sustainable practices. They utilize banana fibers, a naturally
occurring waste product from banana production, which are both biodegradable and
renewable. Their focus on minimizing environmental impact extends to the use of non-
toxic dyes and energy-efficient manufacturing processes. They also ensure that all their
agricultural practices protect biodiversity, reduce water usage, and avoid chemical
pesticides, thereby maintaining soil health and supporting ecosystem sustainability.

2. Technology Adoption: In their quest for efficiency and innovation, The Natural Fiber
Company heavily invests in the latest textile technologies. They employ advanced
machinery for extracting and processing banana fibers, which increases yield and
improves fiber quality. Their R&D team explores cutting-edge applications such as
nanotechnology and biotechnology to enhance the functional properties of banana
textiles, such as water resistance and durability. Furthermore, they leverage data analytics
to optimize their supply chain and production processes, ensuring maximum efficiency
and minimal waste.
3. E-Commerce and Direct-to-Consumer Sales: Recognizing the shift towards online
shopping, The Natural Fiber Company has robustly developed its e-commerce
capabilities. By selling their products directly to consumers through their online platform,
offer a transparent, traceable, and engaging shopping experience. This direct-to-
consumer model not only allows them to better understand and meet customer needs
but also reduces the carbon footprint associated with traditional retail. Online presence
is complemented by targeted digital marketing, focusing on educating consumers about
the benefits of sustainable textiles and creating a community of environmentally
conscious individuals.

Challenges:
The Natural Fiber Company faces a multifaceted array of challenges as it strives to lead in
the sustainable textile industry. Supply chain disruptions often pose significant hurdles,
affecting the steady flow of raw materials and timely production. Quality control remains
a critical issue, with the inherent variability of natural banana fibers demanding stringent
monitoring to maintain product standards. Navigating regulatory and compliance
frameworks across different markets adds another layer of complexity, requiring constant
updates and adaptations to ensure legality and ethical compliance.

In a competitive market, distinguishing themselves while balancing profitability and

ethical practices is increasingly challenging. Additionally, issues such as the specific
storage requirements of natural fibers, effective marketing to enhance brand awareness,
and managing high operational costs due to sustainable practices further complicate their
operations. Moreover, the company must continuously innovate to diversify its product
offerings and meet varying cultural preferences while also keeping pace with
technological advancements to remain competitive. These challenges underscore the
intricate balance The Natural Fiber Company must maintain to achieve its vision of
sustainability and market leadership.

1. Supply Chain Disruptions: The company faces challenges in maintaining a steady

supply of raw materials due to weather conditions, transportation delays, and
geopolitical issues, which can disrupt production timelines and increase costs.

2. Quality Control: Ensuring consistent quality in banana fibers and finished products is
critical. Variability in natural materials and production processes poses a continuous
challenge.
3. Regulatory and Compliance Issues: Navigating the complex landscape of
international standards and regulations related to sustainable practices and textile
production requires constant vigilance and adaptation.

4. Competition: The market is increasingly crowded with companies claiming

sustainable practices. Standing out among competitors while maintaining ethical
standards and profitability is a significant challenge.

5. Storage and Shelf Life: Natural fibers like banana fiber have specific storage
requirements and potential limitations in shelf life compared to synthetic materials,
necessitating advanced preservation techniques.

6. Marketing and Brand Awareness: Building and maintaining strong brand awareness
in a niche market requires effective marketing strategies and customer engagement
to educate consumers about the benefits of banana fibers.

7. Operational Costs: High costs associated with sustainable production, including

labor, technology, and compliance with environmental regulations, impact
profitability.

8. Sustainability Challenges: Achieving true sustainability is complex, involving every

aspect of the operation from raw material sourcing to product disposal.

9. Diversification of Products: Expanding the product line to include a wider range of

applications for banana fiber requires innovation and market research to ensure
viability and market acceptance.

10. Cultural and Taste Preferences: Tailoring products to meet diverse cultural and
regional tastes without compromising the brand’s core values and aesthetic can be
challenging.
11. Economic Factors: Fluctuations in the global economy, including changes in
consumer spending and raw material costs, directly affect business operations and
strategic planning.

12. Technological Upgrades: Keeping pace with technological advancements in textile

manufacturing and sustainability practices involves significant investment and
ongoing training and development.

13. Quality Control: The Natural Fiber Company places a strong emphasis on maintaining
high-quality standards throughout its production process. Ensuring the consistency
and durability of banana fibers is crucial, especially when these natural products must
meet the high expectations of eco-conscious consumers.

14. Regulatory and Compliance Issues: As a player in the global market, the company
must adhere to a myriad of international regulations concerning sustainability, labor
practices, and export standards. This requires a dedicated compliance team to
continuously monitor and adapt to new laws and regulations to avoid costly penalties
and protect their brand reputation.

15. Competition: The rise of sustainable textiles has intensified market competition. The
Natural Fiber Company competes not only with other eco-friendly textile producers
but also with conventional synthetic fiber manufacturers who benefit from lower
production costs.

16. Storage and Shelf Life: Natural fibers, such as those derived from banana stems,
require specific conditions for storage to prevent degradation and preserve quality.
The company must invest in specialized storage solutions to extend the shelf life of
their products, which can increase operational costs.

17. Marketing and Brand Awareness: To stand out in a crowded marketplace, The
Natural Fiber Company needs to implement effective marketing strategies that
 highlight the unique qualities of banana fibers, educating consumers about the
environmental and social benefits of choosing their products over synthetic
alternatives.

18. Operational Costs: Sustainable manufacturing processes often come with higher
operational costs, including the use of eco-friendly materials and technologies, fair
labor practices, and compliance with environmental regulations. These costs can be a
significant challenge, especially when competing with lower-priced non-sustainable
products.

19. Sustainability Challenges: True sustainability involves complex considerations, from

sourcing materials responsibly to ensuring that all aspects of the production process
minimize environmental impact. For The Natural Fiber Company, continuous
improvement in these areas is essential but challenging.

20. Diversification of Products: Expanding their product range to include different types
of textiles and applications requires ongoing innovation and research. Diversification
is vital to tapping into new markets and reducing risk, but it demands substantial
investment in product development.

21. Cultural and Taste Preferences: Tailoring products to align with the diverse cultural
preferences and tastes of global markets can be challenging. The company must
balance universal appeal with localized designs without compromising the integrity of
their sustainable mission.

22. Economic Factors: Global economic fluctuations can impact everything from raw
material costs to consumer spending habits. Economic downturns can reduce
consumer willingness to pay a premium for sustainable products, affecting the
company's profitability.

23. Technological Upgrades: Keeping up with the latest advancements in textile

production and sustainability measures is crucial. This includes investing in new
 technologies that can improve efficiency, reduce waste, and enhance the properties of
banana fibers, requiring continuous capital investment and expertise.

Opportunities:
The Natural Fiber Company is poised to capitalize on a wealth of opportunities that align with its
core values and business strategy. Global expansion is a promising avenue, as the rising demand
for eco-friendly products opens up new international markets eager for sustainable solutions. The
company's strong commitment to sustainable practices not only enhances its market positioning
but also aligns with the increasing consumer preference for environmentally responsible brands.

Diversification of products offers another significant opportunity, allowing the company to explore
various applications of banana fiber, from fashion to home décor, thereby broadening its
customer base and revenue streams. Health-conscious products represent a growing niche as
more consumers seek natural, hypoallergenic materials in response to health and environmental
concerns. Integrating advanced technologies can further streamline production and introduce
innovative product features, enhancing the appeal and functionality of their offerings. Strategic
partnerships and collaborations can leverage synergies, while educational initiatives and local
community engagement can strengthen brand loyalty and consumer relationships.

Moreover, the development of a robust e-commerce platform can maximize reach and efficiency,
providing direct access to global markets. Lastly, maintaining and exceeding international
compliance standards not only mitigates risks but also reinforces the company’s reputation as a
leader in ethical and sustainable textile production. Collectively, these opportunities can drive
substantial growth and solidify The Natural Fiber Company’s position in the competitive landscape
of sustainable textiles.

1. Global Expansion: The increasing global demand for sustainable products provides The
Natural Fiber Company with the opportunity to expand its market presence
internationally, reaching new customers and entering emerging markets that are
increasingly conscious of environmental impact.

2. Sustainable Practices: As consumers and businesses become more environmentally

conscious, the company's commitment to sustainable practices positions it as a leader in
the eco-friendly sector, creating opportunities to influence industry standards and
consumer preferences.

3. Product Diversification: There is significant potential to diversify the range of products

made from banana fiber, such as clothing, home decor, and industrial applications. This
diversification can open new revenue streams and market segments.
4. Health-Conscious Products: With a rise in consumer awareness about the health
implications of synthetic materials, The Natural Fiber Company can capitalize on this
trend by promoting the natural, hypoallergenic properties of banana fibers, appealing to
health-conscious consumers.

5. Technology Integration: Leveraging new technologies can enhance production

efficiency, improve product quality, and develop innovative applications for banana
fibers. This integration can also lead to breakthroughs in the properties and uses of
natural fibers.

6. Strategic Partnerships and Collaborations: Forming partnerships with other eco-

conscious brands, research institutions, and non-governmental organizations can
provide opportunities for shared growth, innovation, and enhanced credibility in the
sustainable market space.

7. Educational Initiatives: By initiating and supporting educational programs about

sustainable living and the benefits of natural fibers, the company can build brand loyalty
and awareness while fostering a deeper connection with consumers.

8. Local Community Engagement: Engaging with local communities in the areas where
the fibers are sourced can help to ensure sustainable practices and create a positive
company image. This engagement can also lead to community support and a reliable
base of local customers.

9. E-Commerce Platform: Developing a robust e-commerce platform can allow the

company to reach a broader audience, reduce dependency on traditional retail channels,
and gather valuable consumer data to better serve their needs and preferences.

10. Compliance with International Standards: Adhering to and exceeding international

environmental and labor standards can not only mitigate risks but also position the
company as a model for sustainability and ethics, appealing to both consumers and
business partners.

Conclusion:
The Natural Fiber Company is strategically positioned at the intersection of innovation
and sustainability, navigating a landscape filled with both challenges and opportunities.
Key trends such as organic practices, technological adoption, and a shift towards direct-
to-consumer sales highlight the company's proactive approach in adapting to evolving
market demands.
However, challenges like supply chain disruptions, quality control, and regulatory
complexities present ongoing hurdles that require diligent management and strategic
foresight. Despite these obstacles, the opportunities for The Natural Fiber Company are
significant and multifaceted. From global expansion and product diversification to
leveraging technology and engaging in strategic partnerships, the company has
numerous avenues to enhance its market presence and influence within the textile
industry. By continuing to focus on its core values of sustainability and innovation, The
Natural Fiber Company can effectively capitalize on these opportunities to not only grow
its business but also lead the way towards a more sustainable future in the textile sector.

Objectives to achieve with this diagnostic assessment

• Company will be able to know its technical as well as sustainability performance.
• Company will be able to know where it lacks.
• Company will get improvement plan.
• Company will improve its competency by following the improvement plan in
order to grow its business and increase its profitability.

Methodology
ITC’s MSME Diagnostic methodology allows for a modular, multi-dimensional assessment
of your company’s performance. The underlying model of analysis can be modularly
adapted to different MSME types and sectors and provides a holistic assessment of your
company’s current practices across 4 competences: Strategic Competence, Marketing
Competence, Production Competence, and Resource Management Competence. The
assessment also addresses other key factors that have an impact on business
competitiveness such as sustainability, digital transformation, corporate culture, and
internationalization.

The ability to compare practices and results is recognized as a valuable tool for improving
performance. However, MSMEs wanting to compare their practice and performance have
so far been hindered by a lack of information from comparable enterprises. You will be
able to compare your company’s scores vs. global, regional, and MSME-type averages.
Learning from others with similar challenges enhances and accelerates the process of
performance improvement. It leads to a better understanding of processes and the setting
of targets for business improvement.

ITC’s business diagnostic methodology derives from ITC’s definition of enterprise

competitiveness and uses the resources and capabilities framework to structure the
assessment.
In-depth assisted assessments are guided by a methodological framework that explains
how enterprises build their competitiveness and is supported by the use of SCAN, ITC’s
diagnostic tool. Assessments are the result of a conversation between the manager and
the certified expert performing the assessment. Experts would identify symptoms of
underperformance, and then try to create causal linkages to determine what the causes
of those symptoms are (i.e.: identifying the problem). Conducting a business diagnostic is
the process of gathering information and applying the right analytical framework to
establish causal links and suggest remedies. This is a multi-stage process.

The business diagnostic process

ITC’s SME diagnostic model and tool

SCAN is a tool that helps assess the level of maturity in the implementation of business
processes using the established best practices as reference point. The modular nature of
the tool combined with the clear identification of competences, capabilities, and
processes allows experts to have a holistic view when assessing business needs, make
causal relationships, and understand how the different part of the business interact. The
tool is flexible enough to allow adaptation to different sectors and different company
maturity levels. SCAN follows a pyramidal structure, where each level shows a higher level
of granularity in the analysis of competitiveness.
The model of analysis looks at the level of maturity in the implementation of business
processes and capabilities along four competences:

- Strategic Competence: This competence is about identifying business

opportunities, defining strategies and goals, fostering innovation, and equipping
the business with the right organizational and governance structures.
- Marketing Competence: This competence allows the MSME to reach and
communicate with potential clients, close business deals that secure medium to
long term profitability and distribute its products. All these capabilities are
operational in nature and differ from the identification of niche markets and the
strategic positioning of the offer that is part of the strategic competence.
- Production Competence: This competence allows the business to manufacture a
product or deliver a service to the client. Its shape will be determined by the
positioning strategy defined by the Strategic Competence.

Resource Management Competence: To develop the strategic, marketing, and

production competences, and the capabilities and processes that constitute them, the
MSME should have access to and manage a bundle of resources. To do this it should
have resource management competence. The objective of the resource management
competence is to make an effective and efficient use of resources and to update and
upgrade the business' resource endowment. Each of the four competences is built
through capabilities, which in turn are composed of business processes.
Sustainability performance:
High-performance and technical expertise are not sufficient to ensure inclusive and
sustainable growth. Furthermore, sustainable and inclusive businesses can unlock new
opportunities, improve growth, and become more resilient. In response to the growing
importance of sustainable practices, ITC has introduced the sustainability performance as
a part of the diagnostic methodology.

The sustainability performance is conducted in parallel to the assessment of your

business’ technical competences. It complements the technical assessment by considering
the same core competences (strategic, marketing, production, and resource management
competencies) through 3 sustainability lenses: environmental sustainability, social
sustainability, and governance.

Other drivers of MSME competitiveness:

Throughout the technical assessment, selected indicators have been flagged as relevant
to support SME’s digital transition and preparedness to adopt new technologies, as well
as its internal culture and inter-colleague relations, and business internationalization, with
a special emphasis on exports. Upon completion of the assessment, these flagged
indicators are extracted to provide a score for the business on these elements.

Scoring system:
A comprehensive scoring system is applied, with scores attributed to the maturity level of
each process with five possible levels of score (ranging from “weak” to “excellent”). The
scoring standard is high, as it is intended to be aspirational. A business should not expect
to score “excellent” on many indicators. The scoring system includes automatic weightings
applied to the different competences, capabilities, and processes.

The MSME diagnostic results are automatically generated as follows:

- Overall score: shows the overall score for your business

- Competence score: shows the score for each competence and how your business
is positioned against the 100% score
- Capability score: shows the score for each capability and how your business is
positioned against the 100% score
- Process score: shows the score for each process and how your business is
positioned against the 100% good practice

ITC’s MSME diagnostic assessment is based on a five-level maturity model. Results are
determined by calculating the weighted mean of scores in each capability and
competence to achieve an overall score.
The scores are interpreted as follows:

Compare your scores

Once the assessment is completed, you can access your company’s dashboard in the on-
line platform. There you will be able to compare your business’ scores to real average
scores at the global and regional level, as well as filter scores by MSME-type.

Next steps

A diagnostic assessment is the first step of improving your performance, and it is an

integral part of ITC’s MSME Competitiveness Programme. The programme offers
MSMEs holistic and targeted competitiveness improvement services, focusing on
boosting the strategic, managerial, and operational performance of MSMEs. Services are
offered either as single modules or as a complete performance improvement programme,
as part of ITC programmes or through certified institutional partners and experts across
the globe. The improvement process involves the following steps:

• Assess: Comprehensive baseline assessment: Effectiveness and efficiency are

assessed using a common, comparable methodology in the form of ITC’s MSME
diagnostic,
• Improve: Based on the findings of the diagnostic assessment, ITC experts or local
certified experts of partner institutions prepare a comprehensive Competitiveness
Improvement Plan (CIP) consisting of targeted capacity building and coaching
activities to strengthen identified weaknesses and capitalize on highlighted
strengths.
• Connect: Through the online MSME Diagnostic and Benchmarking Platform,
businesses can connect with local and international Business Support Institutions.
• Learn: By facilitating internal, external, and functional benchmarking, the platform
offers peer learning opportunities and facilitates the adoption of best practices.
Please visit ITC’s Benchmarking platform, https://www.itcbenchmarking.org, to carry a
range of activities – find material on best practices, conduct self-assessments, and
compare your scores to other MSMEs.

Theoretical Basis
All the information about The Natural Fiber Company was collected theoretically from the
Manager & Owner of The Natural Fiber Company during meetings and on calls.

Data Collection & Desk Reviews

Data is collected theoretically from Manager & Owner of The Natural Fiber Company
through physical visit and calls.
DIAGNOSTIC – FINDINGS

Country (from desk review)

Its operational landscape across various markets, focusing on the unique challenges and
opportunities in each country. The findings reveal that while the company enjoys a
favorable reception in countries with strong environmental policies and a high demand
for sustainable products, it faces distinct regulatory and market challenges in regions with
less developed sustainability frameworks. For instance, in European markets, the company
benefits from robust environmental regulations that favor its organic and eco-friendly
products, driving consumer preference and supporting market penetration. However, in
some Asian countries, despite a growing awareness of sustainability, the company
encounters challenges related to regulatory inconsistencies and competitive pressures
from local, less-regulated manufacturers. These findings are crucial as they guide The
Natural Fiber Company's strategic decisions, helping tailor its approach to each market's
regulatory environment and consumer culture, ensuring compliance and optimizing
market strategy for better penetration and growth.

In terms of Marketing Competence, is a critical factor determining a company's ability to

effectively communicate its value proposition to potential customers and subsequently
convert them. For The Natural Fiber Company, understanding its strengths and areas of
improvement in marketing competence can be pivotal for its growth, especially given the
business landscape and the product sector it operates in.

• Local Reach: The Natural Fiber Company has effectively cultivated a strong local
presence in the markets where it operates. By engaging directly with local
communities and tailoring its offerings to meet regional preferences and needs,
the company has been able to build a loyal customer base. This localized approach
not only enhances market penetration but also supports sustainable agricultural
practices by sourcing materials from local farmers.

• Digital Presence: A robust digital presence is a cornerstone of The Natural Fiber

Company's marketing strategy. Through a well-designed e-commerce platform
and active engagement on social media, the company reaches a global audience,
educates consumers about the benefits of sustainable textiles, and drives direct
sales. Their digital strategy is complemented by content marketing that
emphasizes the environmental and ethical aspects of their products.
• Corporate Culture Influence: The corporate culture at The Natural Fiber Company
is deeply rooted in sustainability and innovation. This culture influences every
aspect of the organization, from production to marketing, ensuring that all
employees are aligned with the company's mission. The strong ethical stance and
commitment to environmental responsibility are also key selling points that
resonate with like-minded consumers and partners.

• Internationalization Scope: The Natural Fiber Company views internationalization

as a strategic opportunity to expand its impact and market share. By adapting its
business models to different international markets and navigating various
regulatory landscapes, the company aims to spread its sustainable practices
globally. This involves understanding cultural nuances and consumer behaviors in
different regions to effectively tailor products and marketing strategies.

• Technical Integration in Marketing: Technical integration plays a significant role

in The Natural Fiber Company's marketing efforts. Utilizing advanced analytics and
digital marketing tools allows the company to target potential customers more
accurately and create personalized marketing campaigns. This integration not only
improves the efficiency of their marketing efforts but also helps in measuring the
impact of different strategies, guiding future decisions.

• Sustainable Practices: Sustainable practices are at the heart of The Natural Fiber
Company’s operations. From sourcing materials to production processes and
product disposal, sustainability is considered at every stage. The company
continuously seeks ways to reduce its carbon footprint, minimize waste, and use
renewable resources, which strengthens its brand image and appeals to eco-
conscious consumers. This commitment to sustainability is also a significant factor
in attracting investors and partners who prioritize environmental stewardship.

The diagnostic findings from the desk review of The Natural Fiber Company reveal a
multifaceted approach to its operations and market strategies, adapting to various
geographic and digital landscapes. Locally, the company has successfully harnessed
community engagement and regional marketing strategies to establish a strong
foothold, ensuring that its sustainable products are well-integrated and received in
the domestic markets. Digitally, its robust presence on online platforms and adept use
of social media have amplified its reach and solidified its brand amongst consumers
worldwide, which is essential in today’s digitally-driven market environment.

The influence of corporate culture is palpable, with a deep-rooted ethos of

sustainability and ethical practices permeating every level of the organization, thereby
 aligning closely with the values of its target consumer base. Internationally, the
company’s strategic expansions are carefully curated to align with the sustainability
regulations and consumer preferences of new markets, showcasing a clear and
effective internationalization strategy. The technical integration in marketing has
enabled precision in consumer targeting and effectiveness in communication
strategies, leveraging data to tailor marketing efforts that resonate with specific
demographics.

Finally, the company’s commitment to sustainable practices remains its cornerstone,

not just in product development but across all operations, reinforcing its market
position as a leader in sustainable textiles and influencing its reception in both local
and international markets. These findings provide crucial insights that guide The
Natural Fiber Company’s strategic decisions and operational adjustments.

Sector (from desk review)

The desk review of The Natural Fiber Company's sector highlights several key aspects that
define its operational and strategic landscape. Operating under a family-driven legacy,
the company has cultivated a strong set of core values centered around quality and
sustainability, which permeate its corporate culture and business practices. This legacy
enhances its brand identity and loyalty among customers and employees alike.

However, its unregistered status presents challenges, particularly in formal market access
and potential growth opportunities, restricting its ability to fully engage with some
financial and international partners. In terms of human resources, the company faces
typical industry challenges such as talent acquisition and retention but benefits from a
diverse workforce, with a notable inclusion of women, which enriches its corporate
environment and innovation capacity. Sales dynamics within the company are influenced
by its commitment to sustainability, which acts as a unique selling point but also requires
adaptation to fluctuating market trends and consumer preferences. Overall, these
elements from the desk review provide a comprehensive view of the sector in which The
Natural Fiber Company operates, highlighting both its strengths and areas where strategic
adjustments are necessary to navigate the complexities of the textile industry.

The sector review of The Natural Fiber Company, based on ITC’s MSME diagnostic
methodology, reveals crucial insights into the company's performance across various
competences. The assessment provides a comprehensive analysis, highlighting both
strengths and areas needing improvements.
 • Family-Driven Legacy: The Natural Fiber Company benefits from a family-driven
legacy, which has instilled a strong sense of values and a commitment to quality
and sustainability throughout its history. This foundational approach fosters a
unique brand identity and creates a strong internal cohesion and dedication
among employees, helping the company navigate the competitive landscape with
a distinct mission and vision.

• Unregistered Status: Operating as an unregistered business poses certain

challenges, especially in terms of accessing formal markets and securing finance or
investments. This status may also impact the company's ability to expand
internationally or engage fully with certain stakeholders who require formal
business registration as a prerequisite for collaboration or partnership.

• Human Resources: The company's approach to human resources emphasizes fair

employment practices and equitable treatment. However, challenges such as talent
acquisition, training, and retention are inherent in this sector, particularly as the
company grows and the need for skilled workers increases. Effective HR strategies
are crucial for scaling operations while maintaining quality and ethical standards.

• Women in the Workforce: The Natural Fiber Company appears committed to

supporting gender diversity, with a significant representation of women in the
workforce. This not only enhances the company’s image as an inclusive and
progressive employer but also contributes to a balanced and dynamic corporate
culture. The presence of women at various levels of the company can bring diverse
perspectives and drive innovation.

• Sales Dynamics: The sales dynamics within the company reveal a strong emphasis
on sustainability as a unique selling proposition. However, fluctuations in sales
might be influenced by external factors such as market trends, consumer behavior,
and economic conditions. The company needs to continuously adapt its sales
strategies to respond to these changing dynamics and capitalize on emerging
opportunities in the market.

These insights from the desk review should help The Natural Fiber Company address its
challenges and leverage its strengths to enhance its position in the sector and drive
further growth.
Enterprise (from diagnostic tool)
The diagnostic tool assessment of The Natural Fiber Company reveals a well-rounded
enterprise with robust competencies across several key areas. In strategic competence,
the company stands out for its clear vision and strong alignment with sustainability goals,
which are well-integrated into its overarching business strategy.

However, there is room for increased flexibility to adapt more dynamically to market
changes. Marketing competence highlights the company's effective brand positioning
and customer engagement, although greater use of digital marketing tools and data-
driven strategies could further expand its reach and market penetration. Production
competence is marked by efficient and innovative use of sustainable materials,
maintaining high quality standards. The main challenge here is scaling production while
managing the natural variability of fiber qualities. Resource management competence
shows effective utilization of both human and material resources, supporting overall
operational efficiency. Enhancements in technology integration and employee training
could drive even greater efficiency and effectiveness.

Overall, The Natural Fiber Company demonstrates strong potential and leadership in the
sustainable textile industry, with identified areas for improvement that, if addressed, could
significantly bolster its market position and operational success.

Strategic Competence: The Natural Fiber Company excels in strategic competence,

demonstrating a clear vision and robust strategic planning. Their commitment to
sustainability and innovation is effectively integrated into their business strategies,
ensuring they remain aligned with industry trends and consumer expectations. However,
the company may need to enhance its flexibility in strategy implementation to better
adapt to dynamic market conditions.

Marketing Competence: In marketing competence, the company shows strengths in

brand positioning and customer engagement, particularly in promoting the unique
benefits of banana fibers. However, there might be areas for improvement in utilizing
digital marketing tools to reach a broader audience and in adopting data-driven
marketing strategies to tailor their campaigns more effectively to different consumer
segments.

Production Competence: The company’s production competence is characterized by

efficient use of sustainable materials and advanced production technologies. They
maintain high standards in quality control and are innovative in their production
processes. Challenges might include scaling production without compromising quality
and managing the variability in natural fiber qualities.

Resource Management Competence: Resource management is another area where The

Natural Fiber Company demonstrates capability, particularly in managing their supply
chain and sustainability practices. Effective utilization of both human and material
resources contributes to their overall efficiency. Opportunities for improvement might
include better integration of technology in resource management processes and
enhancing the training programs for new and existing employees.

Conclusion: Overall, The Natural Fiber Company is well-positioned within its industry,
with strong competencies in strategy, marketing, and production that align with its
sustainability mission. The company’s focus on continuous improvement in these areas,
coupled with better exploitation of technological advancements and data analytics in
resource management and marketing, will be crucial for maintaining its competitive edge
and achieving long-term success. To fully capitalize on its strengths and address areas of
improvement, strategic adjustments and continued investment in innovation and
technology will be essential.

By addressing these areas, The Natural Fiber Company can leverage its strengths, such as
its family-driven legacy and local market presence, while overcoming challenges like
supply chain disruptions, regulatory compliance issues, and competition. Embracing
sustainable practices and integrating advanced technologies will further enhance the
company’s resilience and market adaptability.

Technical Proposal
The technical proposal for The Natural Fiber Company, as derived from the diagnostic
assessment, provides a detailed analysis of the company’s operational effectiveness
across four key competences: strategic, marketing, production, and resource
management. The overall technical score of 26.86% indicates areas for improvement and
development. The company shows strengths in strategic competence, particularly in
designing and implementing business strategies, with a score indicating an average
performance level.

However, challenges are noted in marketing and production competences, where the
company scored relatively low, highlighting the need for enhanced communication
 strategies and improved production processes to meet quality and quantity demands.
Resource management also presents an opportunity for growth, with a need for better
integration of technology and management of physical assets. The technical proposal
suggests targeted improvements in these areas to enhance overall performance and
competitiveness in the textile manufacturing sector.

Technical Performance (Current Score: 26.86%):

Objective: To implement a comprehensive strategic planning process that enables The

Natural Fiber Company to analyze market trends, benchmark against competitors, and set
long-term goals, thereby ensuring a clear strategic direction and competitive positioning.

Action Plan:

• Conduct a detailed market analysis to identify current trends and future opportunities in
the sustainable textile industry.
• Implement competitive benchmarking to assess The Natural Fiber Company's
performance relative to industry leaders.
• Set long-term strategic goals that align with the company's vision and market
opportunities.
• Regularly review and update the strategic plan to reflect changes in the market and
internal business environment.

Strategic Competence Improvement (Current Score: 43.54%):

Objective: Strengthen the strategic planning and decision-making processes to seize

market opportunities and address challenges effectively.

Action Plan:

• Perform a thorough market analysis to identify emerging trends, consumer preferences,

and untapped market segments.
• Establish a dedicated strategic planning team to develop a long-term vision and set
measurable goals.
• Foster a culture of innovation and encourage employees to contribute ideas for new
products and services.
• Seek strategic partnerships with research institutions, universities, and industry experts to
foster knowledge exchange and access specialized expertise. Collaborate with key
stakeholders, such as distributors, retailers, and government agencies, to leverage
synergies and expand market reach.
 Marketing Competence Enhancement (Current Score: 13.10%)

Objective: Elevate marketing efforts to enhance brand visibility, customer engagement,

and market share.

Action Plan:

• Develop a robust digital marketing strategy to leverage online platforms for product
promotion and customer interaction.
• Launch targeted marketing campaigns to reach specific customer segments and promote
seasonal produce.
• Conduct an SEO audit of the company’s website to identify areas for improvement.
• Develop a content calendar to regularly publish blog posts, articles, and updates relevant
to the dairy industry and consumer interests.
• Post regularly on social media to share product updates, industry news, and engaging
content that resonates with followers.
• Build an email list by offering incentives such as discounts or exclusive content for
newsletter sign-ups.
• Develop email marketing campaigns that include product updates, promotions, and
educational content about dairy products and their benefits.
• Use A/B testing to optimize email subject lines, content, and calls to action for better
engagement and conversion rates.
• Invest in pay-per-click (PPC) advertising on platforms like Google Ads to drive targeted
traffic to the website.
• Set up analytics tools (e.g., Google Analytics, social media insights) to track the
performance of digital marketing efforts.

Production Competence Improvement (Current Score: 13.09):

Objective: Optimize production processes and supply chain management to meet

growing demand efficiently.

Action Plan:

• Upgrade existing infrastructure to ensure efficient post-harvest handling and reduce

losses during transportation.
• Implement smart inventory management systems to maintain a consistent supply of
products in the market.
• Strengthen relationships with reliable suppliers and explore potential partnerships to
secure high-quality inputs.
• Promote the use of good agricultural practices (GAPs) among farmers and suppliers.
Provide training and technical support to ensure compliance with GAP standards,
including soil management, pest control, and safe handling of agrochemicals.

Resource Management Competence Enhancement (Current Score: 24.79):

Objective: Optimize resource allocation and management to achieve cost efficiencies and
long-term sustainability.

Action Plan:

• Conduct a thorough assessment of resource usage across the organization and identify
areas for improvement. Implement systems to track and monitor resource consumption.
Develop strategies to reduce waste and promote sustainable resource utilization.
• Conduct a thorough energy audit to identify opportunities for energy conservation and
renewable energy integration.
• Implement waste management initiatives to minimize environmental impact and reduce
operational costs.
• Invest in employee training and development to nurture a skilled and motivated
workforce.
• Provide training programs for employees to enhance their understanding of sustainable
resource management practices. Encourage knowledge sharing and create a culture of
innovation and continuous improvement within the organization.

Sustainability (Current Score: 41.23%) and Internationalization Strategies (Current

Score: 25.00%):

Objective: Enhance sustainability performance, digital readiness, organizational culture,

and international market presence.

Action Plan:
• Develop and implement sustainability initiatives, such as water conservation, organic
farming, and biodiversity preservation.
• Invest in digital infrastructure and data analytics capabilities to improve decision-making
and customer insights.
• Foster a positive organizational culture that encourages collaboration, diversity, and
continuous learning.
• Explore international markets through strategic partnerships, trade exhibitions, and
compliance with international quality standards.

Monitoring and Evaluation:

 Objective: Regularly assess the progress and impact of implemented initiatives.

Action Plan:
• Establish key performance indicators (KPIs) to measure the success of each initiative.
• Conduct periodic reviews and adjustments to strategies based on real-time data and
feedback.
• Engage external consultants to conduct independent evaluations for unbiased
assessments.

Conclusion: By implementing the proposed initiatives and action plans, The Natural
Fiber Company can enhance its overall performance in the horticulture sector. Improving
technical expertise, strategic competence, marketing efforts, production efficiency, and
resource management will bolster the company's competitive edge. Additionally, focusing
on sustainability, digital readiness, organizational culture, and internationalization will
pave the way for sustainable growth and success in both local and global markets.

SWOT analysis
The findings of the technical assessment support the development of a SWOT (Strengths-
Weaknesses-Opportunities-Threats) analysis. The below table highlights where business
scores above, at, and below global averages on the competences and capabilities from
the technical assessment. The findings are aggregated to provide an overall SWOT
analysis of your organization’s technical practices, which will guide subsequent analysis
and final recommendations.
Score Interpretation

0 - 20 Weak SME requires considerable improvement across all competences to operate effectively.

21 - 40 Below average SME has significant competences that require development or improvement.

41 - 60 Average SME is generally operating at a satisfactory level.

61 - 80 Very good SME is performing at a high level overall.

81 - 100 Excellent SME is performing consistently at a world class level, with many competences of good practice.

Scan capability Score Level

B.2. Capability to distribute 0.0%

C.3. Capability to meet quality requirements 5.0%

(0-20) Weak
B.3. Capability to get orders 17.9%
SME requires considerable improvement across all areas to operate
effectively.
B.1. Capability to communicate 21.4%

C.1. Capability to meet attribute requirements 25.0%

 C.2. Capability to meet quantity requirements 25.0%

C.5. Capability to meet time requirements 25.0%

C.6. Capability to fulfill orders 25.0%

D.1. Capability to manage knowledge and information 25.0%

D.3. Capability to manage human resources 25.0%

D.6. Capability to manage physical assets, infrastructure and 25.0%

technology
(20-40) Below average
D.2. Capability to manage financial resources 26.9%
SME has significant areas that require development or
improvement.
D.4. Capability to manage networks and alliances 28.1%

A.3. Capability to design and implement an organizational 37.5%

structure

A.1. Capability to design a business strategy 41.7%

C.4. Capability to meet cost requirements 43.8%

A.2. Capability to plan and implement a business strategy 45.0% (40-60) Average

A.4. Capability to innovate and adapt 50.0% SME is generally operating at satisfactory level.

STRENGTHS WEAKNESSES

Unique product line of banana fiber and yarn, Limited market awareness of banana fiber
sustainable and eco-friendly, with natural benefits, and potential challenges in scaling
antimicrobial properties. Experienced team with production.
over 20 years in the textile industry.

OPPORTUNITIES THERATS

Growing global demand for sustainable textiles, Competition from other sustainable and synthetic
potential for innovation in product applications, fibers, market volatility, and dependence on
expanding market for eco-friendly products. banana stem waste availability.

SWOT NARRATIVE IS PREPARED BY THE EXPERT

CONDUCTING THE DIAGNOSTIC
Strengths:
• The Natural Fiber Company showcases several notable strengths that position it
distinctively in the sustainable textile industry. One of its primary strengths is its
commitment to environmental sustainability, utilizing banana fiber—an eco-friendly and
biodegradable material—which aligns with growing global demands for sustainable
 products. This focus on green materials is not only a strong ethical stance but also a
unique selling point that differentiates the company from competitors who rely on
traditional, less sustainable materials.

• Additionally, the company benefits from an innovative approach to production and

product development, continually exploring new applications for banana fibers and
improving the material's properties to meet diverse market needs. Another significant
strength is the company's dedicated and experienced team, which brings over two
decades of industry expertise to the table, ensuring high-quality product output and
knowledgeable market insights. This combination of sustainable practices, innovation,
and deep industry knowledge creates a strong foundation for The Natural Fiber Company,
enabling it to build a loyal customer base and expand its market presence effectively.

Weaknesses:
• The Natural Fiber Company faces several weaknesses that could impact its competitive
standing and operational efficiency. One notable weakness is its limited market
awareness; the unique benefits of banana fiber are not widely recognized, which can
hinder consumer acceptance and market penetration. Additionally, the company's
production scale and capabilities are not fully developed, posing challenges in meeting
larger or more diverse orders, which can restrict growth and profitability in a highly
competitive market.

• There is also a discernible gap in digital and technological integration within the
company's operations, which limits its efficiency and responsiveness to market changes.
Moreover, the lack of a fully diversified product portfolio means reliance on a narrow
range of products, increasing vulnerability to market fluctuations and consumer
preference shifts. Addressing these weaknesses is crucial for The Natural Fiber Company
to capitalize on its strengths and secure a more dominant position in the sustainable
textile industry.

Opportunities:
• Technological Advancements: It has significant opportunities to leverage technological
advancements to enhance its production processes and product quality. By adopting
new technologies in textile manufacturing, such as advanced material processing and
automation, the company can increase its efficiency, reduce waste, and improve the
durability and appeal of its banana fiber products. Furthermore, investing in R&D could
lead to innovations that expand the applications of banana fibers, potentially opening
up new markets and uses that further distinguish the company from its competitors.
 Threats:
• Market Competition: As the demand for sustainable textiles grows, so does the number
of competitors in this space. The Natural Fiber Company faces competition from both
established textile manufacturers and new entrants that are also focusing on sustainable
practices. This increased competition could pressure pricing, market share, and customer
loyalty.

• Changing Consumer Preferences: Consumer trends in the textile industry can change
rapidly, and the company's reliance on a specific raw material like banana fiber could be
a disadvantage if consumer preferences shift towards other sustainable materials or
technologies. Staying attuned to these shifts and adapting product offerings accordingly
is crucial for maintaining relevance and market presence.

• Regulatory Changes: The global textile industry is subject to stringent and ever-evolving
regulations, particularly regarding environmental impact and sustainability. Changes in
regulations could impose new compliance costs or restrict certain practices, impacting the
company’s operations and profitability. Staying ahead of regulatory changes and planning
for compliance is essential to mitigate this threat.

General (Competitiveness)
The Natural Fiber Company has shown potential in the industry. To enhance its overall
competitiveness, which is as follows.

1. Technical Score (Current score: 26.86): This score reflects the overall technical
competence of the company, which includes a variety of capabilities from strategic
planning to the actual execution of tasks. The detailed breakdown into components such
as Continuous Learning and Skill Development, Research and Development, and
Collaboration and Knowledge Sharing suggests an integrated approach to improving
technical competence.

a) Continuous Learning and Skill Development:

✓ Current Evaluation: This area might assess how well the company is keeping its
workforce up to date with the latest industry practices and technologies. This could
involve training programs, workshops, and regular skill updates.
✓ Potential Steps for Enhancement: Implementing a more structured training
framework that includes external certifications, more frequent workshops, and
possibly collaboration with academic institutions for ongoing education and
internships.
 b) Research and Development:

✓ Current Evaluation: This component likely evaluates the company's efforts in

innovation, particularly in developing new applications for banana fiber or
enhancing its properties. The focus here would be on the tangible outputs of the
R&D department, like patents, new products, or process improvements.
✓ Potential Steps for Enhancement: Increasing investment in R&D, establishing
dedicated R&D teams, and setting clear innovation targets. Additionally, engaging
in partnerships with research institutions could provide access to cutting-edge
resources and knowledge. Advanced post-harvest management, to optimize
productivity and quality.

c) Collaboration and Knowledge Sharing:

✓ Current Evaluation: This measures how effectively information and best practices
are shared within the company and with external partners. It involves assessing
communication channels, collaborative projects, and the integration of knowledge
across different departments.
✓ Potential Steps for Enhancement: Developing a more robust internal platform
for knowledge sharing, regular inter-departmental meetings, and fostering a
culture that encourages the sharing of ideas. Externally, expanding the network of
partners to include global experts and industry leaders could enhance learning and
development.

2. Sustainability Performance (Current score: 41.23): This score encompasses the

company’s efforts and success in implementing sustainable practices across its
operations. It measures the effectiveness of these practices in reducing environmental
impact, enhancing social responsibility, and ensuring good governance.

a) Environmental Impact Assessment: The Natural Fiber Company's current practices

reflect a basic awareness of environmental sustainability, but there is substantial room for
enhancement. The company needs to implement more robust measures to reduce its
carbon footprint, manage waste efficiently, and optimize resource use. Investing in
renewable energy sources, improving water and energy efficiency in production, and
adopting sustainable packaging solutions can significantly improve the company’s
environmental impact. Regular environmental audits and setting measurable targets for
improvement are essential steps to advance in this area.

b) Social Responsibility: The company demonstrates notable strengths in social

sustainability, reflecting a commitment to social responsibility. The Natural Fiber
 Company’s efforts include fair labor practices, supporting local communities, and
ensuring product safety and quality. To further enhance social responsibility, the company
can focus on promoting gender diversity within its workforce, investing in employee
development programs, and engaging in more community outreach initiatives. These
actions not only contribute to a positive social impact but also enhance the company's
reputation and employee satisfaction.

c) Certification and Standards: Targeting Relevant Certifications: Depending on the

results of the gap analysis, target specific certifications that are valued in the textile
industry and by your customer base. For textiles, this could include:

✓ Global Organic Textile Standard (GOTS): Ensures textiles are made from organic
fibers and the production meets stringent environmental and social criteria along
the entire supply chain.
✓ OEKO-TEX Standard 100: Certification that the textiles used do not contain
harmful substances and are safe for human use.
✓ Fair Trade Certification: Focuses on social standards and fair treatment of workers
in the textile industry.
✓ Cradle to Cradle Certified™: Ensures products are designed for a positive impact
on both people and the planet, focusing on material health, material reutilization,
renewable energy use, water stewardship, and social fairness.

3. Resource Management Competence (Current score: 29.17): Indicates a foundational

level of efficiency and optimization. To enhance this score, the company should focus on
improving resource efficiency, optimizing the supply chain, and adopting data-driven
decision-making practices. These improvements will lead to more sustainable operations,
reduced costs, and better alignment with strategic goals, ultimately contributing to the
company’s long-term success and competitiveness.

a) Resource Efficiency: It is crucial for minimizing waste and maximizing the use of
available resources. The Natural Fiber Company needs to implement more efficient
practices in its operations to reduce costs and environmental impact. This can include
optimizing energy usage, improving water management, and adopting lean
manufacturing principles to streamline production processes. By focusing on resource
efficiency, the company can enhance its operational sustainability and reduce its carbon
footprint.

b) Supply Chain Optimization: Vital for ensuring timely delivery of raw materials and
finished products, reducing costs, and improving overall efficiency. The Natural Fiber
Company must enhance its supply chain management by establishing stronger
relationships with suppliers, implementing advanced inventory management systems, and
using data analytics to forecast demand accurately. This will help in minimizing
disruptions, reducing lead times, and ensuring a consistent supply of high-quality raw
materials.

c) Data-driven Decision Making: Essential for optimizing resource management and

improving overall business performance. They should invest in advanced data analytics
tools to gather and analyze data across various operations. This includes tracking resource
usage, monitoring production efficiency, and evaluating supply chain performance. By
making informed decisions based on real-time data, the company can identify areas for
improvement, predict future trends, and allocate resources more effectively.

Production Competence (Current score: 24.79): It reflects the company's moderate

ability in managing and optimizing its production processes. This score suggests that
while there are some strengths, there are also significant areas for improvement to
achieve higher efficiency and quality. Here's an analysis of the key aspects contributing to
this score:

a) Quality Control: Quality control is a critical aspect of production competence. The

Natural Fiber Company needs to implement stringent quality control measures to ensure
that all products meet high standards of quality and safety. This includes regular
inspections, adherence to food safety regulations, and continuous monitoring of
production processes. By improving quality control, the company can reduce the risk of
product recalls, enhance customer satisfaction, and build a strong reputation for quality.

b) Scalability and Flexibility: Scalability and flexibility in production are essential for
responding to market demands and managing growth. The Natural Fiber Company
should invest in scalable production technologies and flexible manufacturing systems that
can adapt to varying production volumes and product types. This capability will enable
the company to efficiently manage peak demand periods, introduce new products, and
expand its market presence without compromising on efficiency or quality.

c) Supply Chain Collaboration: Effective collaboration with supply chain management

(SCM) partners is crucial for optimizing production processes and ensuring a steady
supply of raw materials. They must strengthen their relationships with suppliers and
distributors to improve coordination and communication. Implementing integrated SCM
systems can enhance visibility, reduce lead times, and minimize disruptions. Collaboration
with (SCM) partners also facilitates better resource planning and inventory management.
 Export Readiness
The Natural Fiber Company has demonstrated potential in the horticulture industry and
is considering expanding its operations to international markets. To assess the export
readiness of the company, several key factors have been evaluated, including technical
performance and sustainability performance (strategic competence, marketing
competence, production competence and resource management competence).

1. Technical Score (Current score: 26.86): This score reflects the company’s ability to meet
international standards, adapt products for different markets, and invest in research and
development. Here is a detailed analysis of the key components contributing to this
score.

a) Compliance with International Standards: Compliance with international standards is critical

for The Natural Fiber Company, particularly given its focus on sustainability and ethical practices
in the textile industry. Successfully adhering to these standards can enhance product credibility,
market access, and consumer trust. Here’s a strategy to ensure compliance with these standards.

✓ Identification of Relevant Standards: Conduct a comprehensive review of

international standards relevant to the sustainable textile industry. This includes
environmental, social, and quality standards such as ISO 14001, Fair Trade, GOTS
(Global Organic Textile Standard), and OEKO-TEX.
✓ Gap Analysis and Compliance Planning: Perform a gap analysis to compare
current practices with the requirements of identified standards. And develop a
detailed compliance plan that addresses identified gaps, outlining steps to adjust
processes, training requirements for staff, and any necessary changes in supply
chain management.
✓ Implementation and Monitoring: Implement necessary changes in processes
and operations to meet standards. This may involve investing in new technologies,
changing suppliers, or enhancing employee training programs. And establish a
monitoring system to ensure ongoing compliance. This could include regular
internal audits and reviews, as well as periodic third-party audits.
✓ Certification and Continuous Improvement: Once compliance is achieved,
obtain certification from accredited bodies. Publicize these certifications in
marketing materials and on product labels. And engage in continuous
improvement processes to maintain compliance as standards evolve. This includes
staying informed about changes to standards and participating in industry forums
and discussions.
✓ Stakeholder Engagement: Communicate regularly with stakeholders about the
company's compliance with international standards. This includes customers,
 suppliers, and regulatory bodies. Use compliance as a tool for enhancing
transparency and building stronger relationships with all stakeholders, reinforcing
the company's commitment to ethical and sustainable practices.

b) Product Adaptation: Adapting products to meet the specific tastes, preferences, and
regulatory requirements of different international markets is crucial for successful exports.
The Natural Fiber Company should focus on modifying product formulations, packaging,
and labeling to comply with the standards and preferences of target export markets. This
might include adjusting the sweetness level of products, using culturally relevant
branding, or adopting eco-friendly packaging materials. Product adaptation helps in
gaining acceptance and popularity in diverse markets.

c) Research and Development: Investing in research and development (R&D) is vital for
The Natural Fiber Company to innovate and create products that appeal to international
consumers. R&D can drive the development of new dairy products, improve existing
product lines, and find solutions to meet specific market needs. By staying ahead of
industry trends and consumer preferences through continuous R&D, the company can
enhance its competitive edge and export potential. Collaborating with research
institutions and investing in modern technology can bolster these efforts.

2. Sustainability Performance (Current score: 41.23): Sustainability is increasingly

becoming a factor in international trade. The Natural Fiber Company can enhance its
sustainability performance through the following actions:

a) Sustainability Certifications: Obtain recognized sustainability certifications, such as

organic or fair-trade certifications, to demonstrate the company's commitment to
environmental and social responsibility. These certifications can enhance the
competitiveness of products in target export markets.

b) Sustainable Supply Chain: Assess and improve sustainability practices throughout the
supply chain, including sourcing of raw materials, packaging materials, and transportation.
Ensure responsible sourcing, waste reduction, and ethical labor practices.

c) Environmental Impact Assessment: Conduct a comprehensive assessment of the

company's environmental footprint, including energy consumption, water usage, and
greenhouse gas emissions. Develop strategies to reduce negative environmental impacts
and improve resource efficiency.
 3. Strategic Competence (Current score: 14.38): Strategic competence is crucial for
successfully entering and navigating international markets. The Natural Fiber
Company should consider the following strategies:

a) Market Research and Analysis: Conduct thorough market research to identify target
export markets with high demand for horticulture products. Evaluate market size,
competition, consumer preferences, and regulatory requirements to develop informed
market entry strategies.

b) Partnerships and Distribution Channels: Establish strategic partnerships with local

distributors, agents, or importers in target markets. Leverage their expertise and networks
to facilitate market access and distribution. Evaluate the viability of e-commerce platforms
or online marketplaces for export sales.

c) Market Entry Planning: Develop a comprehensive market entry plan that includes
pricing strategies, promotional activities, and distribution logistics. Consider cultural and
linguistic factors, as well as any trade barriers or customs regulations that may impact
export operations.

4. Marketing Competence (Current score: 13.10): Effective marketing is crucial for

penetrating international markets and establishing a strong brand presence. The Natural
Fiber Company can enhance its marketing competence through the following initiatives:

a) Market Segmentation and Positioning: Identify target customer segments in the

export markets and tailor marketing messages accordingly. Develop a unique value
proposition that differentiates The Natural Fiber Company products from competitors.

b) International Branding and Promotion: Develop a cohesive international branding

strategy that resonates with target customers. Invest in marketing activities, such as trade
shows, advertising, and digital marketing campaigns, to raise awareness and generate
interest in The Natural Fiber Company products.

c) Export Marketing Collateral: Develop marketing materials, including brochures,

catalogs, and product specifications, specifically designed for international markets.
Ensure that these materials are available in multiple languages and effectively
communicate the key benefits and features of the products.
5. Production Competence (Current score: 24.79): Enhancing production competence is
essential to meet the demands of international markets. The Natural Fiber Company can
focus on the following actions:

a) Product Consistency and Quality Control: Establish robust quality control processes
to ensure consistent product quality. Implement quality assurance protocols, conduct
regular testing and inspections, and establish traceability systems to meet international
buyer requirements.

b) Scalability and Flexibility: Evaluate the scalability and flexibility of production

processes to meet the demands of international markets. Assess production capacity,
consider technological advancements, and develop contingency plans to accommodate
variations in market demand.

c) Value-Added Products: Explore opportunities to develop value-added products that

differentiate companies from competitors. This could include processed or packaged
horticulture products, such as dried fruits, frozen produce, or ready-to-eat snacks, which
have higher export potential.

6. Resource Management Competence (Current score: 26.01): Effective resource

management is crucial for successful export operations. Company should consider the
following measures to enhance resource management competence:

a) Supply Chain Optimization: Streamline supply chain processes to minimize waste,

reduce lead times, and improve efficiency. Evaluate and select reliable suppliers, establish
clear communication channels, and implement effective inventory management systems.

b) Resource Efficiency: Implement practices to optimize the use of resources, such as

water, energy, and fertilizers. Monitor and analyze resource consumption patterns to
identify areas for improvement and implement measures to reduce waste and costs.

c) Risk Management: Develop strategies to manage potential risks in the supply chain,
such as disruptions in transportation, fluctuating input costs, or market fluctuations.
Implement contingency plans and diversify suppliers to mitigate risks and ensure
continuity in export operations.

by addressing the aspects of The Natural Fiber Company can enhance its export readiness
and position itself for successful entry into international markets.
 Sustainability
The Natural Fiber Company has demonstrated a commitment to sustainability, as
reflected in its sustainability performance score of 41.23. However, to further enhance its
sustainability practices, it is important to focus on strategic competence, marketing
competence, production competence and resource management competence. By
addressing these areas, The Natural Fiber Company can strengthen its sustainability
efforts and contribute to a more environmentally responsible and socially conscious
business model.

1. Strategic Competence (Current score: 43.54): Strategic competence plays a vital role in
embedding sustainability within the core business strategy of The Natural Fiber Company.
The following strategies can be employed:

a) Sustainability Integration: Incorporate sustainability considerations into the

company's strategic planning processes. Set sustainability goals and targets that align
with international standards and industry best practices. Develop strategies to achieve
these goals and regularly monitor progress.

b) Stakeholder Engagement: Engage with stakeholders, including employees, suppliers,

customers, and local communities, to raise awareness and gain support for sustainability
initiatives. Encourage feedback, collaboration, and participation in sustainability-related
programs and projects.

c) Long-Term Planning: Consider the long-term implications of business decisions and

investments. Assess potential environmental and social risks and opportunities associated
with market trends, regulatory changes, and climate impacts. Incorporate sustainability
into investment decisions and develop contingency plans for potential risks.

2. Marketing Competence (Current score: 13.10): Effective marketing can raise awareness
and promote sustainability initiatives to a broader audience. The Natural Fiber Company
can enhance marketing competence through the following measures:

a) Sustainability Communication: Clearly communicate the company's sustainability

efforts and achievements to customers, stakeholders, and the public. Utilize various
communication channels, such as social media, website content, and product labeling, to
highlight sustainable practices, certifications, and eco-friendly attributes.
 b) Consumer Education: Educate consumers about the benefits of sustainable
horticulture products and the importance of supporting environmentally responsible
businesses. Provide transparent information about product origins, production processes,
and sustainable certifications to build consumer trust.

c) Collaboration and Partnerships: Collaborate with like-minded organizations, non-

governmental organizations (NGOs), and sustainability-focused initiatives to amplify
sustainability messages and leverage collective impact. Seek partnerships to promote
sustainable practices, conduct joint research, or develop sustainable supply chains.

3. Production Competence (Current score: 24.79): Enhancing production competence is

essential for sustainable horticulture practices. The Natural Fiber Company can implement
the following initiatives to improve production sustainability:

a) Sustainable Crop Practices: Embrace sustainable agricultural practices such as organic

farming, integrated pest management, and soil conservation techniques. These methods
reduce the reliance on chemical inputs, minimize soil erosion, and protect biodiversity.

b) Water Conservation: Implement water-efficient irrigation systems and practices to

reduce water usage. Consider implementing rainwater harvesting techniques, adopting
drip or micro-irrigation systems, and using moisture sensors to optimize water
application.

c) Biodiversity Conservation: Encourage biodiversity by implementing measures to

preserve and enhance natural habitats within and around agricultural lands. This can
involve creating wildlife corridors, planting native vegetation, and adopting agroforestry
practices.

4. Resource Management Competence (Current score: 26.01): Efficient resource

management is crucial for minimizing waste, reducing environmental impact, and
ensuring long-term sustainability. The Natural Fiber Company can take the following
actions to improve resource management competence:

a) Resource Efficiency: Implement measures to optimize the use of resources such as

water, energy, and fertilizers. This can include the adoption of precision irrigation systems,
energy-efficient technologies, and sustainable farming practices that minimize resource
waste.
 b) Waste Management: Develop and implement comprehensive waste management
strategies. This may involve implementing recycling and composting programs, reducing
packaging waste, and exploring opportunities for upcycling or repurposing agricultural
by-products.

c) Environmental Monitoring: Establish systems to monitor and measure environmental

indicators such as greenhouse gas emissions, water usage, and soil health. Regularly
assess the environmental impact of operations and use the data to identify areas for
improvement.

By addressing resource management competence, production competence, strategic

competence, and marketing competence, The Natural Fiber Company can further
enhance its sustainability performance. This will not only contribute to the company's
long-term success but also promote environmental stewardship and social responsibility
within the horticulture industry.

Others
The Natural Fiber Company scores on digital readiness, corporate culture, and
internationalization were calculated by extracting selected indicators from the technical
assessment. These indicators look at how the business deals with the adoption of new
technologies, the nurturing of a conducive working environment, and the readiness to
identify and seize international opportunities. This methodology allows for the analysis of
The Natural Fiber Company digital readiness down to the process level, without the need
for a separate assessment.

The Natural Fiber Company achieved an overall digital readiness score of 20.0 %, a
corporate culture score of 30.26 %, and an internationalization readiness score of 25.0 %.

• Digital Readiness (Current score: 20.0): The Natural Fiber Company demonstrates a
below average level of digital readiness. To further enhance this aspect, the company can
focus on:
• Digital Infrastructure: Assess and upgrade the company's technological infrastructure,
including hardware, software, and network capabilities, to support digitalization efforts.
• E-commerce and Online Presence: Develop and optimize an e-commerce platform or
online marketplace presence to expand market reach and facilitate direct sales to
domestic and international customers.
• Digital Marketing and Analytics: Utilize digital marketing strategies, such as search engine
optimization (SEO), social media marketing, and data analytics, to enhance brand visibility,
customer engagement, and decision-making.
2. Organizational Culture (Current score: 6.5): The organizational culture of The Natural
Fiber Company plays a significant role in shaping the company's performance and its
ability to adapt to changing market dynamics. To strengthen this aspect, the company
can consider the following:
• Leadership and Employee Engagement: Foster a culture of innovation, collaboration, and
continuous learning by promoting effective leadership practices and engaging employees
in decision-making processes.
• Sustainability Mindset: Embed sustainability principles into the company's culture by
promoting awareness, training, and recognition programs that encourage
environmentally friendly practices and responsible resource management.
• Agility and Adaptability: Encourage an agile and adaptable mindset among employees to
respond to market changes, embrace technological advancements, and proactively seek
opportunities for growth and improvement.
3. Internationalization (Current score: 6.58): The Natural Fiber Company has shown a
moderate level of internationalization readiness. To further expand its presence in
international markets, the company can consider the following:
• Market Research and Entry Strategy: Conduct thorough market research to identify
potential target markets, including their cultural, regulatory, and economic factors.
Develop a comprehensive market entry strategy that addresses market-specific
challenges and opportunities.
• Supply Chain Optimization: Streamline and optimize the international supply chain to
ensure efficient logistics, timely delivery, and compliance with international trade
regulations.
• Cultural Intelligence: Enhance cultural intelligence within the organization by training
employees on cross-cultural communication, negotiation skills, and understanding local
business customs and practices.

By addressing digital readiness, organizational culture, and internationalization, The

Natural Fiber Company can enhances its overall performance and competitiveness in the
market. It is important for the company to develop a strategic roadmap that aligns with
its vision and goals, emphasizing continuous improvement and innovation. Regular
evaluation and monitoring of progress will ensure that the company remains agile and
adaptive to the evolving business landscape and market demands.
 Strategy
Introduction:
The Natural Fiber Company is dedicated to producing high-quality dairy products,
leveraging traditional methods to create fresh milk and Khoya. To enhance its market
position and ensure sustainable growth, the company is implementing a comprehensive
strategy focusing on quality assurance, branding, supply chain efficiency, storage
management, risk management, and innovation.

Objectives:
• Quality Assurance and Compliance:

✓ Developing a strong brand identity that highlights the unique benefits of its
products.
✓ Implementing integrated marketing campaigns to reach a broader audience.
✓ Leveraging digital marketing tools and social media platforms to engage with
customers.
✓ Creating compelling content that resonates with target consumers and promotes
brand loyalty.

• Branding and Marketing Enhancement:

✓ Launch a comprehensive branding campaign to position The Natural Fiber

Company as a leading name in the Fried onion sector. Initiate special training
programs for our marketing team to enhance their skills and knowledge.

• Supply Chain and Cost Efficiency:

✓ Develop a robust procurement strategy to address the inflation of raw material

costs.
✓ Explore opportunities for long-term partnerships with raw material suppliers for
better cost negotiation.

• Storage and Inventory Management

✓ Invest in advanced storage facilities to ensure the longevity and freshness of

finished goods.
✓ Implement an inventory management system to optimize storage space and
reduce wastage.
• Risk Management:

✓ Establish a comprehensive risk management strategy to address potential threats

such as fire, theft, and health issues.
✓ Conduct regular safety and health training for employees to ensure a safe working
environment.

• Innovation and Adaptation:

✓ Foster a culture of innovation to continuously improve our product range and keep
up with changing market trends.
✓ Allocate a portion of the budget for R&D initiatives to explore new product lines
and diversification.

Market Analysis:
a. Export industry overview: Evaluate market trends, consumer preferences, and
competitive landscape in target markets.
b. Identify target markets: Conduct market research to identify regions with growing
demand for high-quality produce and favorable trade regulations.
c. Consumer preferences: Understand the preferences, packaging requirements, and
import regulations of target markets.

Product Portfolio:
d. Diverse range of khoya: Offering various types of khoya to cater to different
culinary needs.
e. Premium quality: Ensuring the highest standards of freshness and purity in all
products.
f. Seasonal offerings: Providing special dairy products tailored to festive and
seasonal demands.
g. Packaging and labeling: Utilizing attractive and hygienic packaging with clear
labeling for consumer convenience.

Strategic approach: Suggestion of change of operational behavior. It

includes requirements on leadership commitment and engagement,
alignment with corporate mission, buys in from internal (employees)
and external (e.g. suppliers or impacted communities) stakeholders

To improve the technical performance (26.86) and sustainability performance (41.23) of

The Natural Fiber Company, it is essential to adopt a strategic approach that focuses on
 changing operational behaviors. This approach requires strong leadership commitment
and engagement, alignment with the corporate mission, and buy-in from both internal
(employees) and external stakeholders (such as suppliers or impacted communities). The
following suggestions can help facilitate this change:

1. Leadership Commitment and Engagement:

• Top leadership should actively demonstrate their commitment to technical and
sustainability performance improvement. This includes setting clear goals, allocating
resources, and providing necessary support for initiatives.
• Leaders should communicate the importance of technical and sustainability performance
improvement to the entire organization, emphasizing the long-term benefits and aligning
them with the company's overall vision and mission.
• Leadership should actively engage with employees, listen to their ideas and concerns, and
create a culture of open communication and collaboration.

2. Alignment with Corporate Mission:

• Review and align the company's mission statement and values with a strong emphasis on
technical and sustainability performance improvement. This will ensure that all
operational decisions and actions are in line with the company's overarching goals.
• Communicate the revised mission statement and values to employees and stakeholders,
highlighting the importance of technical and sustainability performance in achieving the
company's overall mission.

3. Stakeholder Engagement and Buy-in:

• Engage internal stakeholders, such as employees, in the change process by fostering a
sense of ownership and involvement. Encourage their participation in decision-making,
problem-solving, and idea generation related to technical and sustainability performance
improvement.
• Establish regular channels of communication with external stakeholders, such as suppliers,
customers, and impacted communities, to understand their expectations and concerns.
Seek their input and feedback on sustainability initiatives and involve them in relevant
decision-making processes.

4. Training and Capacity Building:

• Provide training programs and capacity-building initiatives to enhance employees'
knowledge and skills related to technical and sustainability practices. This can include
 workshops, seminars, and certifications focused on areas such as resource management,
sustainable production techniques, and responsible marketing.

5. Performance Monitoring and Reporting:

• Implement robust monitoring and reporting systems to track technical and sustainability
performance indicators regularly. This will help identify areas of improvement, measure
progress, and communicate results to internal and external stakeholders.
• Regularly share performance data and achievements with employees and stakeholders to
reinforce the importance of technical and sustainability performance and celebrate
successes.

By implementing these strategic approaches, The Natural Fiber Company can drive a
positive shift in operational behavior, leading to improved technical performance and
sustainability outcomes. It will foster a culture of continuous improvement and create a
strong foundation for long-term success while meeting the expectations.

Identification of required resources (Human, financial, tools, data,

partnerships, external stakeholders, etc)

To enhance technical performance (26.86) and sustainability performance (41.23), The

Natural Fiber Company ne eds to identify and allocate the necessary resources. These
resources can include human capital, financial investments, tools and technologies, data
and information, partnerships, and engagement with external stakeholders. The
identification of these resources is crucial for implementing effective strategies and
initiatives. Here are the key resource requirements:

1. Human Resources:
• Skilled Workforce: Allocate resources to recruit, train, and retain skilled professionals with
expertise in technical areas such as horticulture practices, precision agriculture, resource
management, and sustainable production methods.
• Sustainability Specialists: Hire or designate sustainability specialists who can drive the
implementation of sustainable practices, monitor performance, and guide sustainability
initiatives.
• Training and Capacity Building: Invest in training programs to enhance the skills and
knowledge of employees regarding technical practices and sustainability concepts.
2. Financial Resources:
• Budget Allocation: Allocate funds specifically for technical and sustainability
performance improvement initiatives, including research and development, infrastructure
upgrades, training programs, and implementation of new technologies.
• Return on Investment (ROI): Conduct a cost-benefit analysis to demonstrate the
potential return on investment from improving technical performance and sustainability.
This can help secure financial resources from internal stakeholders and attract external
funding or grants.

3. Tools and Technologies:

• Technology Upgrades: Invest in advanced tools and technologies that enhance technical
performance and support sustainability practices. This may include precision irrigation
systems, sensor-based monitoring devices, data analytics software, and automation
technologies.
• Resource Management Tools: Implement software or systems that enable efficient
resource management, such as water usage monitoring systems, energy management
software, and inventory tracking tools.

4. Data and Information:

• Data Collection and Analysis: Establish data collection mechanisms to gather relevant
technical and sustainability performance data. This may include monitoring water and
energy usage, tracking waste generation, and measuring key performance indicators
(KPIs).
• Data Management Systems: Implement data management systems that ensure accurate
data collection, analysis, and reporting. This may involve investing in cloud-based storage
solutions, data visualization tools, and data security measures.

5. Partnerships and External Stakeholders:

• Collaboration with Suppliers: Engage suppliers and develop partnerships with those
who share a commitment to sustainability and can provide eco-friendly inputs, packaging,
and logistics solutions.
• Engagement with Local Communities: Foster relationships with local communities to
understand their concerns, seek their support, and involve them in sustainability
initiatives. This can include initiatives such as community gardens, educational programs,
or partnerships with local organizations.
• Collaboration with NGOs and Research Institutions: Collaborate with non-
governmental organizations (NGOs) and research institutions to access expertise, conduct
joint research projects, and share best practices in technical and sustainability
performance.

By identifying and allocating the necessary resources, The Natural Fiber Company can
effectively implement strategies and initiatives to improve technical performance and
sustainability outcomes. It is important to conduct a thorough assessment of resource
needs, develop a clear resource allocation plan, and continuously evaluate the
effectiveness and impact of the resources invested.

Activity prioritization – setting implementation workplan (with

deadlines, milestones, roles and responsibilities, etc)

To improve technical performance (26.86) and sustainability performance (41.23), The

Natural Fiber Company should prioritize activities and develop an implementation
workplan. This workplan should include clear deadlines, milestones, roles, and
responsibilities to ensure effective execution. Here is a suggested outline for the activity
prioritization and workplan:

Objective: Improve overall performance and competitiveness of the SME in the

horticulture sector by addressing weaknesses and building on strengths.

1. Capability to Innovate and Adapt (0.0%-Weak):

• Deadline: Implement within 6 months.

• Milestones:
• Conduct a brainstorming session with the team to generate innovative ideas. (1
month)
• Evaluate and select viable ideas for implementation. (2 months)
• Pilot test the selected ideas in specific areas of the business. (4 months)
• Roles and Responsibilities:
• R&D Team: Lead the ideation and pilot testing process.
• Department Managers: Support and provide feedback during the pilot phase.
 2. Capability to Manage Physical Assets, Infrastructure, and Technology (0.% -
Weak):
• Deadline: Implement within 9 months.
• Milestones:
• Conduct a comprehensive assessment of current physical assets and technology
systems. (2 months)
• Identify areas that require upgrades or improvements. (3 months)
• Develop a budget and plan for necessary upgrades. (5 months)
• Implement upgrades and monitor progress. (9 months)
• Roles and Responsibilities:
• Operations Manager: Oversee the assessment and planning phase.
• IT Team: Lead the implementation of technology upgrades.

3. Capability to distribute (50.00% - Below average):

• Deadline: Implement within 6 months.

• Milestones:
• Evaluate current distribution channels and partnerships. (1 month)
• Identify potential reliable distributors and establish new partnerships. (3 months)
• Implement a logistics optimization plan. (5 months)
• Roles and Responsibilities:
• Sales and Marketing Team: Lead the evaluation and partnership establishment.
• Supply Chain Manager: Oversee logistics optimization.

4. Capability to Design a Business Strategy (20.83% - Below average):

• Deadline: Implement within 12 months.

• Milestones:
• Conduct a SWOT analysis and market research. (3 months)
• Develop a clear business strategy aligned with long-term goals. (6 months)
• Communicate the strategy to all employees and obtain feedback. (9 months)
• Monitor progress and make adjustments as needed. (12 months)
• Roles and Responsibilities:
• Strategic Planning Team: Lead the analysis and strategy development.
• CEO/Top Management: Oversee the communication and implementation.
 5. Capability to Manage Networks and Alliances (12.50% - Below average):

• Deadline: Implement within 9 months.

• Milestones:
• Identify potential strategic partners and assess their suitability. (2 months)
• Initiate discussions and negotiate alliances. (4 months)
• Finalize agreements and establish collaborative projects. (8 months)
• Roles and Responsibilities:
• Business Development Team: Lead the partner identification and negotiation
process.
• Legal Team: Assist in finalizing partnership agreements.

6. Capability to Meet Quantity Requirements (15.0% - Below average):

• Deadline: Implement within 6 months.

• Milestones:
• Analyze production capacity and identify areas for improvement. (1 month)
• Optimize production processes and streamline workflows. (4 months)
• Monitor production output and analyze results. (6 months)
• Roles and Responsibilities:
• Production Manager: Lead the analysis and optimization process.
• Quality Control Team: Monitor production output and ensure quality.

7. Capability to Plan and Implement a Business Strategy (25.00% - Below average):

• Deadline: Implement within 12 months.

• Milestones:
• Establish a cross-functional strategy implementation team. (1 month)
• Develop detailed action plans and assign responsibilities. (3 months)
• Monitor progress and review performance regularly. (9 months)
• Adjust strategies and plans as needed. (12 months)
• Roles and Responsibilities:
• Strategy Implementation Team: Oversee the development and execution of action
plans.
• Department Heads: Implement the action plans within their respective areas.
 8. Capability to Communicate (25.00% - Below average):

• Deadline: Implement within 6 months.

• Milestones:
• Conduct communication skills training for all employees. (2 months)
• Implement regular communication channels and platforms. (4 months)
• Roles and Responsibilities:
• HR Department: Organize and facilitate communication skills training.
• Communication Team: Implement internal communication channels.

9. Capability to Meet Quality Requirements (0.0% - Weak):

• Deadline: Maintain within the range of 40-60%.

• Milestones:
• Implement quality management systems and processes. (3 months)
• Conduct regular quality audits and gather customer feedback. (6 months)
• Roles and Responsibilities:
• Quality Assurance Team: Lead the implementation of quality management
systems.
• Customer Support Team: Gather customer feedback and identify improvement
areas.

10. Capability to Meet Cost Requirements (50.00% - Average): -

• Deadline: Maintain within the range of 40-60%.

• Milestones:
• Conduct a cost analysis and identify areas for cost optimization. (3 months)
• Implement cost-saving measures and monitor expenditures. (6 months)
• Roles and Responsibilities:
• Finance Team: Lead the cost analysis and optimization efforts.

11. Capability to Design and Implement an Organizational Structure (6.3% - Weak):

• Deadline: Implement within 9 months.

• Milestones:
 • Assess the current organizational structure and identify areas for improvement. (2
months)
• Design a new organizational structure that aligns with business goals. (6 months)
• Implement the new structure and monitor effectiveness. (9 months)
• Roles and Responsibilities:
• HR Department: Lead the assessment and design of the new organizational
structure.
• Top Management: Oversee the implementation and effectiveness evaluation.

12. Capability to Get Orders (3.6% - Weak):

• Deadline: Maintain within the range of 40-60%.

• Milestones:
• Conduct a market analysis and identify potential target customers. (2 months)
• Implement targeted marketing and sales strategies. (6 months)
• Monitor order acquisition rate and customer feedback. (9 months)
• Roles and Responsibilities:
• Sales and Marketing Team: Lead the market analysis and marketing efforts. -
Customer Support Team: Monitor customer feedback and ensure customer
satisfaction.

13. Capability to Meet Time Requirements (46.9% - Average):

• Deadline: Maintain within the range of 40-60%.

• Milestones:
• Conduct a time management assessment and identify bottlenecks. (2 months)
• Implement time-saving measures and optimize processes. (6 months)
• Monitor delivery timelines and customer feedback. (9 months)
• Roles and Responsibilities:
• Operations Manager: Lead the time management assessment and optimization
efforts.
• Customer Support Team: Monitor delivery timelines and address customer
concerns.
 14. Capability to Manage Human Resources (0.0% - Weak):

• Deadline: Maintain within the range of 40-60%.

• Milestones:
• Conduct a talent assessment and identify skill gaps. (2 months)
• Implement training and development programs. (6 months)
• Monitor employee engagement and satisfaction. (9 months)
• Roles and Responsibilities:
• HR Department: Lead the talent assessment and training initiatives. - Department
Managers: Monitor employee engagement and address concerns.

15. Capability to Manage Knowledge and Information (16.57% - Weak):

• Deadline: Maintain within the range of 40-60%.

• Milestones:
• Implement knowledge management systems and tools. (3 months)
• Conduct knowledge-sharing sessions and document best practices. (6 months)
• Monitor knowledge retention and accessibility. (9 months)
• Roles and Responsibilities:
• IT Team: Lead the implementation of knowledge management systems.
Department Heads: Facilitate knowledge-sharing sessions and document practices.

16. Capability to Manage Financial Resources (9.62% - Weak):

• Deadline: Maintain within the range of 40-60%.

• Milestones:
• Conduct a financial analysis and identify areas for financial optimization. (3 months)
• Implement cost-saving measures and budget controls. (6 months)
• Monitor financial performance and review budget adherence. (9 months)

• Roles and Responsibilities:

• Finance Team: Lead the financial analysis and optimization efforts.

17. Capability to Meet Attribute Requirements (10.00% - Average):

• Deadline: Maintain within the range of 60-80%.

• Milestones:
• Gather customer feedback and assess attribute satisfaction. (3 months)
• Implement improvements to meet specific attribute requirements. (6 months)
• Monitor customer satisfaction and attribute compliance. (9 months)
• Roles and Responsibilities:
• Customer Support Team: Gather customer feedback and assess satisfaction.
• Product Development Team: Lead the attribute improvement initiatives.

Implementation Monitoring and Review:

• Regular progress review meetings will be conducted every quarter to assess the
implementation status and identify any challenges or adjustments needed.
• The management team will be responsible for overseeing the overall implementation
progress and ensuring alignment with the strategic goals.

Conclusion: By prioritizing activities and setting up an implementation work plan with

clear deadlines, milestones, roles, and responsibilities, The Natural Fiber Company can
focus its efforts on improving critical areas of weakness and building on its strengths. The
systematic approach will enable The Natural Fiber Company to enhance its overall
performance and competitiveness in the dynamic horticulture market. Regular monitoring
and review will ensure that the implementation stays on track and leads to tangible
improvements in the SME's capabilities and overall success.

Setting KPIs and targets

To drive continuous improvement in technical performance (26.86) and sustainability
performance (41.23), it is important for The Natural Fiber Company to establish key
performance indicators (KPIs) and targets. These KPIs and targets will provide a
measurable framework for monitoring progress and assessing the success of the
company's initiatives. Here are some suggested KPIs and targets based on the given
technical and sustainability performances:

Setting Key Performance Indicators (KPIs) and Targets for the SME:

1. Capability to innovate and adapt (KPI):

• KPI: Percentage of innovative ideas implemented.
• Target: Increase the percentage of implemented innovative ideas from 0.0% to
10.0% within the next quarter.
2. Capability to manage physical assets, infrastructure, and technology (KPI):
• KPI: Downtime of critical machinery and technology systems.
• Target: Reduce the downtime of critical machinery and technology systems from
the current 5.0% to 10.0% in the next six months.
3. Capability to distribute (KPI):
• KPI: On-time delivery rate.
• Target: Improve on-time delivery rate from the current 15.0% to 50.0% in the next
quarter.
4. Capability to fulfill orders (KPI):
• KPI: Order fulfillment lead time.
• Target: Decrease order fulfillment lead time from the current 15.0% to 55.0% in the
next three months.
5. Capability to design a business strategy (KPI):
• KPI: Strategy execution success rate.
• Target: Increase the strategy execution success rate from the current 33.3% to
50.0% within the next year.
6. Capability to manage networks and alliances (KPI):
• KPI: Number of strategic partnerships established.
• Target: Establish at least three strategic partnerships with suppliers or industry
associations in the next six months.
7. Capability to meet quantity requirements (KPI):
• KPI: Production volume variance.
• Target: Reduce production volume variance from the current 25.0% to 15.0% in the
next quarter.
8. Capability to plan and implement a business strategy (KPI):
• KPI: Strategy implementation timeline adherence.
• Target: Improve strategy implementation timeline adherence from the current
45.0% to 60.0% within the next six months.
9. Capability to communicate (KPI):
• KPI: Internal communication satisfaction rate.
• Target: Increase internal communication satisfaction rate from the current 60.3%
to 80.0% in the next three months.
10. Capability to meet quality requirements (KPI):
• KPI: Quality defects per batch.
• Target: Reduce the number of quality defects per batch from the current 40.0% to
20.0% in the next quarter.
11. Capability to meet cost requirements (KPI):
• KPI: Cost variance from budget.
• Target: Maintain cost variance within the range of 40-60% as per the average score.
12. Capability to design and implement an organizational structure (KPI):
 • KPI: Organizational structure efficiency.
• Target: Improve organizational structure efficiency from the current 43.8% to 60.0%
within the next year.
13. Capability to get orders (KPI):
• KPI: Order acquisition success rate.
• Target: Increase order acquisition success rate from the current 46.4% to 60.0% in
the next six months.
14. Capability to meet time requirements (KPI):
• KPI: Project delivery timeliness.
• Target: Achieve 100% on-time project delivery within the next three months.
15. Capability to manage human resources (KPI):
• KPI: Employee turnover rate.
• Target: Reduce employee turnover rate from the current 50.0% to 30.0% in the next
year.
16. Capability to manage knowledge and information (KPI):
• KPI: Knowledge retention rate.
• Target: Improve knowledge retention rate from the current 52.8% to 70.0% in the
next two quarters.
17. Capability to manage financial resources (KPI):
• KPI: Budget adherence rate.
• Target: Achieve at least 90% budget adherence in the next financial year.
18. Capability to meet attribute requirements (KPI):
• KPI: Customer satisfaction rating.
• Target: Maintain customer satisfaction rating within the range of 60-80% as per the
very good score.

These KPIs and targets will help the Natural Fiber Company to monitor its progress,
identify areas for improvement, and align its efforts towards enhancing performance and
achieving strategic objectives in the horticulture sector.

Monitoring and evaluation plan

Objective: The objective of this monitoring and evaluation plan is to assess and track the
technical performance and sustainability performance of The Natural Fiber Company. This
plan aims to provide a systematic framework for monitoring and evaluating the
company's operations and initiatives to ensure efficiency, effectiveness, and sustainability.
1. Establish Clear Performance Metrics:
• Define specific metrics for each aspect of performance, such as technical
performance, strategic competence, marketing competence, production
competence, and resource management.
• Ensure that these metrics are measurable, relevant, and aligned with the
organization's goals.
2. Regular Data Collection:
• Implement a system for collecting relevant data on a regular basis.
• Use appropriate tools and methods to gather data related to technical
performance, sustainability performance, and individual competencies.
• Data can be collected through surveys, interviews, performance reviews, and data
analysis.
3. Data Analysis and Interpretation:
• Analyze the collected data to assess the performance of The Natural Fiber
Company in each area.
• Compare the actual performance against the established performance metrics and
targets.
• Identify trends, patterns, and areas of improvement or concern based on the data
analysis.
4. Report Generation:
• Prepare regular reports summarizing the performance data and evaluation
findings.
• Clearly present the results of technical performance, sustainability performance,
and individual competencies.
• Highlight areas where performance is meeting or exceeding expectations and
areas that require improvement.
5. Review and Action Planning:
• Conduct regular review meetings to discuss the evaluation findings and reports.
• Identify key insights and lessons learned from the evaluation process.
• Develop action plans to address areas of improvement and capitalize on strengths.
6. Implementation of Improvement Measures:
• Execute the action plans and initiatives identified during the review process.
• Assign responsibilities and timelines for implementing improvement measures.
• Monitor the progress of the improvement measures and make adjustments as
necessary.
7. Continuous Monitoring and Evaluation:
• Continuously monitor and evaluate the performance of The Natural Fiber Company
to track progress over time.
• Conduct periodic reviews and assessments to ensure that performance targets are
being met and adjustments are made as needed.

By implementing this monitoring and evaluation plan, The Natural Fiber Company can
systematically track and assess its technical and sustainability performance, as well as the
performance of individual competencies. This will help the organization identify areas for
improvement and make informed decisions to enhance overall performance.

Communication Strategy (internal and external)

Internal Communication Strategy:

1. Objectives:
a. Foster a culture of transparency, trust, and collaboration among employees.
b. Ensure effective and timely dissemination of information within the organization.
c. Facilitate employee engagement, alignment, and participation in company goals and
initiatives.
2. Channels and Tools:
a. Intranet Portal: Develop a centralized online platform for sharing company news,
updates, policies, and resources.
b. Email Newsletters: Regularly send informative and engaging newsletters to employees.
c. Team Meetings: Conduct regular team meetings to discuss progress, challenges, and
upcoming initiatives.
d. Town Hall Meetings: Organize company-wide meetings to provide updates from senior
management and address employee questions and concerns.
e. Internal Social Media: Establish internal social media platforms to facilitate informal
communication, knowledge sharing, and collaboration.
f. Employee Surveys: Conduct surveys to gather feedback, suggestions, and ideas from
employees.
3. Key Messages:
a. Company Vision, Mission, and Values: Reinforce the organization's core principles and
purpose.
 b. Strategic Objectives: Clearly communicate the company's goals and targets.
c. Operational Updates: Share updates on projects, initiatives, and milestones.
d. Employee Recognition: Recognize and appreciate employee achievements and
contributions.
e. Training and Development Opportunities: Highlight learning and growth opportunities
for employees.
4. Frequency:
a. Regular Updates: Provide weekly or bi-weekly updates on important news, events, and
initiatives.
b. Quarterly Town Halls: Conduct company-wide town hall meetings to provide
comprehensive updates and address employee queries.
c. Immediate Communication: Send urgent communications promptly when necessary.
5. Responsible Parties:
a. Internal Communications Team: Manage and coordinate internal communications
efforts.
b. Department Managers: Cascade relevant information to their respective teams.
c. Executive Leadership: Lead by example in transparent and effective communication.

External Communication Strategy:

1. Objectives:
a. Build and maintain a positive brand image and reputation in the market.
b. Effectively communicate company news, products, and services to target audiences.
c. Engage with stakeholders, including customers, partners, and the public, to build
relationships and trust.
2. Channels and Tools:
a. Press Releases: Issue well-crafted press releases to announce significant company
updates, product launches, and milestones.
b. Media Relations: Build relationships with relevant media outlets and respond promptly
to media inquiries.
c. Social Media Platforms: Utilize social media channels to share company news, engage
with customers, and address queries and concerns.
d. Website: Maintain an up-to-date and informative website with clear messaging and
easy access to relevant information.
 e. Blogging and Content Marketing: Publish engaging and valuable content to establish
thought leadership and provide insights to target audiences.
f. Events and Sponsorships: Participate in industry events and sponsor relevant community
initiatives to enhance brand visibility.
3. Key Messages:
a. Company Values and Commitments: Highlight the company's ethical standards,
sustainability efforts, and social responsibility initiatives.
b. Product/Service Benefits: Clearly communicate the value proposition and benefits of
products/services to the target market.
c. Industry Leadership: Demonstrate expertise and leadership in the industry through
thought-provoking content and participation in industry events.
d. Customer Success Stories: Share success stories and testimonials from satisfied
customers to build credibility and trust.
4. Frequency:
a. Regular Updates: Share frequent updates on social media platforms, blogs, and
newsletters to keep stakeholders informed.
b. Press Releases: Issue press releases as needed for significant announcements or
milestones.
c. Event Participation: Participate in relevant industry events and sponsorships throughout
the year.
5. Responsible Parties:
a. Marketing and Communications Team: Develop and execute external communication
strategies.
b. Spokespersons: Designate individuals within the organization to serve as official
spokespersons for media interactions.
c. Executive Leadership: Provide support and guidance in external communication efforts.
Conclusion
The Natural Fiber Company exhibits a complex landscape of strengths and areas for
improvement across various competencies and operational metrics. The company's
Technical Score of 26.86% reflects initial steps towards establishing robust business
processes but highlights significant room for development, particularly in harnessing
advanced technologies and enhancing operational efficiencies. This is further
underscored in the specific competencies, with Resource Management and Production
Competence both displaying foundational capabilities but needing strategic investment
to enhance productivity and resource utilization effectively.

The Sustainability Score of 41.23% demonstrates The Natural Fiber Company's

commitment to environmental and social responsibilities, a critical aspect given its focus
on sustainable textiles. However, the need to deepen these practices through more
rigorous adherence to global sustainability standards is evident, suggesting a pathway for
strengthening its market positioning and consumer trust.

Digital Readiness emerges as a critical area of focus, with a score of 20.00% indicating
that the company is at a nascent stage of integrating digital solutions. Advancing in this
area could lead to significant gains in operational agility and customer engagement,
essential for staying competitive in a rapidly evolving industry. The Organizational Culture
Score of 30.26% points to an existing framework of values and practices within the
company but also signals the necessity for a more vibrant, inclusive, and empowering
corporate culture. Enhancing this area can foster innovation, employee satisfaction, and
alignment with broader corporate goals.

Internationalization Readiness, scored at 25.00%, shows preliminary efforts to reach

global markets but underscores the need for a more strategic approach to global
expansion, including better understanding of foreign markets, compliance with
international regulations, and localized consumer preferences.
In terms of competencies:

✓ Strategic Competence needs strengthening, particularly in areas of long-term

planning and market adaptation strategies to better anticipate and react to
industry shifts.
✓ Marketing Competence requires a significant overhaul to improve brand
communication, digital marketing strategies, and customer engagement to
effectively convey the unique value proposition of sustainable textiles.

Overall, The Natural Fiber Company is positioned with a solid foundation in sustainability
and initial market strategies. However, accelerating improvements in digital integration,
strategic planning, and market competencies are essential for leveraging emerging
opportunities and mitigating risks associated with rapid industry transformations.
Enhanced focus on these areas will be crucial for The Natural Fiber Company to achieve
sustained growth and a competitive edge in the global textile market.

Overall, the SME's performance ranges from weak to below average, with a few areas showing
average and very good performance. To enhance its overall operations and effectiveness,
considerable improvement is needed across various capabilities. Focusing on strengthening weak
areas and continuing to build on strengths will be crucial for the SME's growth and success.
 Annex I
Methodology and information sources
Method Approach and source

Document review Document review of internal documents including reports,

minutes, processes, plans and strategies and external
documents including annual reports, memoranda of
understanding and contracts, programme information and
marketing material, reports to stakeholders. Review of client
records.

Interviews, visits Interviews, visits – internal Interviews with top managers and
– staff across client facing and corporate business units (see
internal detail in Appendix II)

Observation Observation In house visits to different areas, exchanged views

with staff of many different levels, tracked some of the
processes and observed the work dynamics.

Data Data Consultations with relevant staff to gather quantitative

data in relation to people and support processes. Review of
survey results and other results of operations.

Web Site Website Review of the website and of material available on the
website, and tested links and automated responses.
 Annex II
List of persons met.
Name Title Date

Mr. M. Faraz Owner 23rd Feb, 2024

Mr. Mumtaz Manager 23rd Feb 2204

 Annex III

Competences, Capabilities, Process

There are four competences and each competences have capabilities and processes.

A. Strategic Competence

1.1 Capability to design a business strategy

1.1.1 Generation, evaluation, and filtering of business ideas

• The enterprise has a systematic approach to generating business ideas which could turn
into opportunities.
1.1.2 Foreign market identification

• The enterprise examines destination information relevant for the product offer, in
addition to trade flow analysis for selecting potential destination markets.
1.1.3 Market segmentation

• The enterprise has identified groups of potential customers with similar needs,
expectations and purchasing habits and occasions to be served.
1.1.4 Segment selection

• The enterprise selects to focus its efforts on segments based on its ability to produce
and market the offer and to gather the resources necessary to do so.
1.1.5 Define customer value proposition

• The enterprise attempts to “add-value” to its base offer by adding features or

transformation stages to distinguish it from the competition.
1.1.6 Business model design

• Business model does not exist, or is so vague and unclear that makes it impossible to
fully understand how the business is going to monetize the business opportunity.
1.2 Capability to plan and implement a business strategy

1.2.1 Identification of critical business processes

• The enterprise identifies important processes common across the industry for
implementing the strategy.
1.2.2 Preparation of strategic plan
 • The enterprise prepares a plan for building the capabilities and processes it needs, with
timeline, assigned responsibility and budget estimations.
1.2.3 Handling risk and uncertainty

• The enterprise has identified and assessed the most important risk events, and has
designed some mitigation measures.
1.2.4 Periodic strategy update and adaptation

• The enterprise determines whether to change its strategy or not based on the
achievement of its strategic objectives.
1.2.5 Monitoring strategy implementation

• The business did not identify the key indicators that need to be monitored to ensure
the strategy is on track, so implementation checks are done only when there are clear
signs of deviations.
1.3 Capability to design and implement an organizational structure

1.3.1 Developing organizational structures

• The enterprise has an organizational structure in place, which seems inadequate for the
type of business.
1.3.2 Developing policies, systems, and procedures for adequate governance

• The enterprise has written governance policies that facilitate effective and efficient
work within the business.
1.3.3 Define strategic oversight structures

• Founder(s) make decisions in consultations with individual executives and sometimes

seeks to informally involve external advisors. Middle managers and key personnel
understand the limits of their authority.
1.3.4 Ensure adequate shareholder participation and protection

• The difference between nonfamily and family issues is acknowledged and understood.
Stakeholders are aware of the importance of family succession planning. There are
regular (at least annual) shareholders’ meetings.
1.4 Capability to innovate and adapt

1.4.1 Conducting basic and technical research

• The enterprise does not do any sort of research, nor is aware of research and innovation
programmes it could benefit from.
1.4.2 Managing innovation
• The business has no system in place for collecting and vetting innovative ideas
originated throughout the business.
1.4.3 Managing digital transformation
The business uses antiquated systems and does not make plans for digitally
transforming its operations.
 B. Marketing Competence

2.1 Capability to communicate

2.1.1 Developing and managing corporate identity

• The company has a strong brand identity that clearly represents its mission, values, and
goals. The brand identity is consistently used and the company has the tools it needs to
ensure its adequate implementation, support, and evolution.
2.1.2 Product positioning

• The business has a clear positioning statement for its products and services. Positioning
is clear and adequate for the target segment. It allows for differentiation and highlights
the unique value proposition in comparison to the competition.
2.1.3 Preparing sales and marketing material

• The business uses limited sales literature, consisting only of basics such a general
brochure describing the company and its products, or an elemental website.
2.1.4 Programming promotions

• The business does not conduct promotional campaigns.

2.1.5 Programming advertisement

• The business does not use or rarely (a few specific actions) advertising to promote its
brands and products or services. The business conducts ad hoc communication actions
not supported by rigorous methods in the identification of the target consumer or
media audience.
2.1.6 Developing an adequate on-line presence

• Fully satisfactory and planned on-line presence across different channels, capable of
attracting and generate meaningful interactions with the target audience.
2.1.7 Manage customer relations

• The business does not have a CRM system in place.

2.2 Capability to distribute

2.2.1 Selection of distribution channels / modes of entry

• The business uses tools and data to assess distribution channels relative to its offer and
to define the distribution strategy accordingly to the marketing objectives in terms of
turnover, profitability and awareness, resulting in a judicious cross distribution channel.
The business is fully capable of identifying clients’ purchasing habits.
2.3 Capability to get orders

2.3.1 Prompting and responding to sales inquiries

• The business uses structured and documented prospecting tools (pitch, interview
guides, answers to objections, standard letters).
2.3.2 Preparing specifications and negotiating
 • The business uses segmentation to adapt negotiating to customers’ status (e.g.,
strategic customer, client development potential, small client).
2.3.3 Pricing and quoting

• The business uses tools to reach a perfect overlapping of prices for competitiveness and
profitability purposes (i.e., yield management). Responsiveness is improved.
2.3.4 Setting-up e-commerce mechanisms

• While the overall e-shopping experience is satisfactory, the business cannot generate
significant sales, in part due to an inadequate use and analysis of the traffic information
and for not using available tools to maximize customer attraction, conversion, and
retention.
2.3.5 Evaluate sales performance

• The business uses a wide range of key metrics to evaluate sales performance that
include sales results – e.g., average deal size, average profit margin, quota attainment,
win rate - and sales activity – e.g., number of calls made, number of social media
connections, number of proposals sent.
2.3.6 Increase customer retention and lifetime value
• The business understands the importance of nurturing client relationships, but it does
not go further than adapting (not personalizing) its offers and some communication
material.
2.3.7 Manage client contracts
• The business creates new contracts using a standard template with pre-approved
contractual language and terms but the assessment of contractual risks (i.e., cost
escalation, inability to meet schedule, not delivering features as expectations, etc.)
seems inadequate.

C. Production Competence

3.1 Capability to meet attributes requirements

3.1.1 New product design and prototyping

• Design and prototyping is a smooth and seamless process, but the company waits to
long to launch the new product. This could be the result of a belief that the product
needs to be “perfect” before reaching the market.
3.1.2 Product localization, alteration, and enhancement

• The company focus on the highest-value enhancements, as perceived by the client, and
clarifies the success criteria for each particular feature or change in the product.
3.1.3 Product discontinuation

• When assessing product discontinuation, the company looks at the product’s lifecycle,
at the coherence of the product catalogue, and tries to ensure there is enough variety
in the current product line to compensate for the discontinuation of a product.
3.1.4 Packaging design

• While the use of packaging materials is correct and product packaging is relatively well
designed, it uses generic designs and lacks differentiation.
3.2 Capability to meet time requirements

3.2.1 Determine inventory and stored capacity requirements

• The enterprise differentiates the levels of inventory required based on its production
build strategies across products, such as fast vs. slow moving goods, just-in-time, build-
to-order, build-to-configuration, etc., to achieve an optimal cost vs. satisfaction
balance.
3.2.2 Internal logistics

• The enterprise organises the movement of materials, parts, tools, equipment, etc., with
procedures for handling, equipment, schedule and moves, to ensure their availability
where and when they are needed.
3.2.3 Purchasing and expediting

• The enterprise exchanges information on market needs and demand, product

characteristics, or buyers and competitors, with key suppliers in its approved suppliers
list.
3.2.4 Keeping stock

• The enterprise organises its stock so that it is easy to access and find needed items and
accidental waste is avoided.
3.2.5 Manage supplier contracts

• The business uses multiple types of supplier contracts (e.g., fixed price contracts, cash
reimbursable contracts, time and materials contracts, indefinite delivery contract, etc.)
depending on the type of product or service being acquired and the type of relationship
it wants to build with the supplier.
3.2.6 Handle dangerous goods

• The business has a code of practice for all staff and contractors involved with the
storage and handling of dangerous goods. This includes information sharing, awareness
raising, and training.
3.2.7 Plan and schedule production work

• The business considers existing orders, inventory, and capacity availability to plan and
schedule production and service delivery.
3.2.8 Bill of material management

• The business has an effective BOM indicating all the necessary information (e.g., part
numbers, locations, vendors, etc.) and makes sure that every item has a category
assigned (e.g., standard parts, electronics parts, mechanical parts, custom parts,
fastener, packaging), allowing the business to conduct important tasks such as
 dependency analysis, cost breakdowns by category, centralize critical information (e.g.,
manufacturer part number), and build a searchable database of parts, among other.

3.3 Capability to meet quantity requirements

3.3.1 Location and site planning

• Uses a process to evaluate and select the location of its plants, offices and warehouses.
3.3.2 Design layout and installing production facilities

• Obtains technical information and engineering studies for the design and layout of the
plant.
3.3.3 Design production processes

• The business identifies operations and their sequences, as well as factors (demand, type
of product) and restrictions (layout of the plant, tools) of the production process.
3.3.4 Tool identification and design

• Applies the process to determine and/or design tools, jigs and fixtures to manufacture
a given product.
3.3.5 Manage product packing and packing operations

• The business has a formal protocol for verifying that all incoming shipments of
packaging supplies are correct and up to standard and optimizes packaging line
operations by taking into consideration the operating speed of each piece of equipment
and the pace at which operators are working to.
3.4 Capability to meet cost requirements

3.4.1 Balance production line

• The enterprise balances the processing capacity between production stations, achieves
a common throughput by adding/subtracting capacity or splitting/merging operations,
and synchronises production flow across steps.
3.4.2 Implementation of continuous improvement programmes

• The enterprise identifies and improves manufacturing processes in a systematic manner

to improve its competitiveness.
3.4.3 Implementation of cost reduction programmes

• The enterprise analyses its cost structure to effect reductions in its costs as an internal
need arises or as a response to external factors.
3.4.4 Waste management

• The business is fully committed to prevent the generation of waste by conducting a

thorough review and improvement of all its operations, including changing the design,
manufacture, purchase, and use of materials or products. The business focuses on
prolonging the useful life of materials and delaying their disposal by repairing,
 refurbishing, washing, or simply by recovering work or used products, appliances,
furniture, and building material.

3.5 Capability to meet quality requirements

3.5.1 Establish quality standards

• The enterprise continuously reviews and improves its international, regulatory and
private standards-based specifications taking into account experience, competitors and
market requirements.
3.5.2 Develop and implement quality control procedures

• The enterprise sets quality objectives and manages its marketing and production
processes as an integrated system, including measurement, monitoring and corrections.
3.5.3 Manage product traceability

• The business ensures internal traceability by using a manual system to capture, store,
and manage traceability information from material inputs to finish product outputs.
3.5.4 Manage after sales service departments

• The enterprise formally receives, records, and acknowledges complaints and reacts in a
pre-defined manner to resolve the most common ones.
3.5.5 Manage returns

• The business treats each return on a case-by-case basis and as they come.

3.6 Capability to fulfil orders

3.6.1 Estimate production costs

• The enterprise estimates its product or service production cost taking into account
possible options in terms of specifications, quality objectives, adjusted lead times, and
adjusted volumes, in addition to using standard costs.
3.6.2 Dispatch work
• The business assigns work intuitively to workstation, personnel, based on production
equipment, operators, tools, and materials on hand.
3.6.3 Fulfil freight and transport operations
• The enterprise plans and arranges with customers and suppliers for timely and adequate
transport and handling of appropriately packed goods well ahead of when it is needed.
D. Resource Management Competence
4.1 Capability to manage knowledge and information

4.1.1 Identifying and analysing the business' resource requirements

• The enterprise determines where to find the well-defined resources it requires, how best
to do so, and is successful in acquiring the right resources on time at a reasonable cost.
4.1.2 Evaluating customers' reactions
• The enterprise collects and understands customers' perception of competitors' offers in
addition to its own.
4.1.3 Identifying and understanding industry trends

• The enterprise knows its main competitors and knows their offers superficially.
4.1.4 Evaluating customers' needs, expectations, and purchasing habits

• The enterprise understands which needs, expectations and habits drive customers'
purchasing decisions and focuses its attention on those which are not fully satisfied.
4.1.5 Conducting market potential studies

• The business is able to conduct in-store customer expenditure surveys and/or buy-
response surveys to get an idea of the customers’ ability to purchace certain items, but is
unable to conduct more sophisticated experiments that may yield more reliable
information.
4.1.6 Forecasting sales

• The enterprise estimate sales volumes on an ad-hoc basis as it does not know the size of
the market or the purchasing power of potential clients well enough.
4.1.7 Understanding the regulatory framework applying to the enterprise and its offer

• The enterprise identifies and understands the rules and regulations which apply to the
enterprise in itself.
4.1.8 Performance measurement

• The enterprise develops ad-hoc measures to reduce the underperformance it has detected
vis-à-vis needs satisfaction, capabilities or processes.
4.1.9 Design and install knowledge mapping systems and repositories

• There are few people within the organization that knows how things are done and owns
critical knowledge for the business, and everyone goes to them when in need of
information. The knowledge is not codified or documented, and it is accessible as long as
the knowledge owner is available.
4.2 Capability to manage financial resources

4.2.1 Managing working capital

• Short term cash flow budgets are regularly checked against actual cash inflows and
outflows, discrepancies are analysed, and cash flow projections are regularly updated.

4.2.2 Accounting and bookkeeping

• The business is following a cash-basis (single-entry) accounting system, where cash

inflows and outflows are recorded correctly but there is no certainty on receivables,
payables, and depreciation levels.
4.2.3 Budgeting

• The business is able to prepare accurate revenue and growth projections based on
historical financial performance, as well as accurate variable cost and discretionary
expenses projections based on market conditions or internal factors.
4.2.4 Asset valuation

• The business is capable of accurately calculate the fair value of the investments and
marketable securities it holds in its portfolio.
4.2.5 Analysing investment decisions

• The business is capable of using the most adequate tool to assess each investment
opportunity, but is usually unable to determine which opportunity to pursue among
competing alternatives of equal financial attractiveness.
4.2.6 Accounts receivable management

• The business is capable of determining its level of exposure vis-a-vis each debtor and to
undertake targeted efforts (e.g. understand the customers' needs and wants, make phone
calls, send letters to upper-level managers, etc.) to avoid payment delays and collect
overdue accounts.
4.2.7 Corporate tax management

• The business accurately calculates and plans all tax payments, and tax payment problems
or delays are not associated to the identification and calculation of the business' tax
burden.

4.2.8 FOREX management

• The business uses an ad-hoc combination of relatively simple tools such as forward
contracts and factoring (i.e. sell of accounts receivable) to hedge against FX fluctuations.
4.2.9 Equity management

• The business' equity is managed following only business-related considerations, and there
is a clear dividend policy to distribute profits to the shareholders.
4.2.10 Financial reporting

• The business produces accurate and reliable financial reports at pre-determined time
intervals for the sole purpose of complying with legal requirements.
4.2.11 Auditing

• While performed professionally, internal audits focus on data collection - in detriment of

data analysis -, and tend to focus on insignificant problems, rather than broader, more
critical business-wide issues.
4.2.12 Accounts payable management

• The business does not have efficient and automatic software that manages all accounts
payable procedures; however, it is done manually using paper invoices. This leads to
inefficient use of time and errors and delays on payment.
4.2.13 Payroll management

• The business has policies and procedures to guide the entire payroll system, including a
strict payroll approval process. It keeps track of dates and payroll tax deadlines with a
system of notifications and reminders.

4.3 Capability to manage human resources

4.3.1 Recruitment and selection

• The business considers current and future needs when recruiting new employees and
takes special care on ensuring cultural fit when recruiting new employees.
4.3.2 Remuneration and benefits administration

• The business only uses salaries, commissions and bonuses as a way of remunerating
employees, ignoring other indirect compensation methods (e.g. health insurance, paid
time off, retirement plans, etc.)
4.3.3 Employee performance evaluation

• While the business has an appraising system in place (e.g. management by objectives, 260-
degree feedback, Subordinates appraising managers, etc.), employees complain that they
are being rated on factors not related to job performance or specific duties

4.4 Capability to manage networks and alliances

4.4.1 Determine the need for an alliance

• The organization evaluates its existing capabilities and confirms the additional resources
needed to run the value chain activities.
4.4.2 Create an alliance development plan

• The organization knows what support is required from top management and from
different departments/units.
4.4.3 Identification of potential partners

• The organization has a basic understanding of elements needed to identify potential

alliance partners and applies this knowledge on ad-hoc basis.
4.4.4 Define a criteria for alliance partner selection and assess compatibility

• Some criteria for partner selection exist but do not cover all areas under which the partner
compatibility for alliance is to be assessed.
4.4.5 Run risk assessment of potential alliance partner(s)

• The organization is aware of risk factors and standardizes assessment procedures.

4.4.6 Contract drafting

• The organization has a basic contract in place but further integration of information is
required to achieve contract completeness.
4.4.7 Evaluate single alliances and alliances portfolio performance and analyse the results
• The organization has the skills to process and interpret the data obtained from the metric
system and by doing so, identifies areas of over or/and underperforming.
4.4.8 Assess impact of alliance termination

• The organization does not know the impact the alliance termination would have on the
firm and across the alliance portfolio.
4.5 Capability to manage physical assets resources

4.5.1 Develop maintenance systems

• The enterprise anticipates the replacement of wear-prone parts and keeps a stock of spare
parts and ensures that operators are able to operate the equipment without
compromising its performance.