GE MED Sun Zola

GLOBAL ECONOMICAL MICRO ENTERPRISES DEVELOPMENT (PVT) LTD

OFFICE: No- 32 5/B, MAIN STREET

MALIKAIKKADU, SAINTHAMARUTHU

FACTORY: No- 20 E, AL KAMAROON LANE, SAINTHAMARUTHU -03 +94672224443 +94777296053

E-mail: [email protected]

Phone: +94672224443

Mobile: +94777296053

Email: [email protected]

Company Name: GE-MED (PVT) LTD Strategic Plan for Sun Zola

Table of contents

Front Page ………………………………………………………………….....……..01

Table of Contents…………………………………………………...……….….…02

Introductions……………………………………………………………………..…03

Executive Summary ……………………………………………………………...06

Back Round of this Study ……………………………………………………..07

Back Round of the Company……………………..……………………….….11

Company Objectives…………………………………………………………...…13

Long-Term Objectives…………………………………………………………….14

SWOT Analysis………………………………………………………………..…...15

What is that strategic planning process………………………………..…16

Initial Assessment…………………………………………………………………17

Situation Analysis and Strategy Formulation…………………………..18

Benefits of Strategic Management………………………………………...24

Recommendations for the SUN ZOLA……………………………………25

Summery…………………………………………………………………………..26

Reference………………………………………………………………………….27

Event Snaps………………………………………………………………….28-…44

Sun Zola Future Strategic budget for five years…………………….. 45

Annexes……………………………………………………………………………….

Introductions

The strategic plan involves defining and controlling the business’s future, as well as its current status. A thoughtfully prepared strategic plan helps the organization to compete against its competition while controlling its financial standpoint and takes steps towards achieving its mission. The organization’s mission and vision determines the success of the strategic plan. Without the mission or vision statements, the strategic plan has no ultimate goal to strive and lacks memorability. While an organization can have a strategic plan without a mission or vision statement, the plan is sure to be unsuccessful because it will lack direction which will reduce the organization’s potential for a competitive advantage. The business’s mission statement provides a wide, universal view of the organization’s reason for existence. It identifies the organization’s ultimate goal, or vision, and serves as the foundation for the organization’s values and cultures.The mission statement is void of specifics and is often so general that it may appear unattainable.

Founder of the firm ABOOBAKKER MUSTHAK AMEEN

Executive Summary

GE MED Sun Zola is quality & food safety policy is set out below. It is owned and endorsed by the Corporate Social Responsibility Committee of the Board of Directors; responsibility for the successful implementation of this program belongs with every specific employee at each level and function in the organization.

GE MED Sun Zola Hellenic believes that success depends on the supply of high quality products, packages and services that meet or exceed customer and consumer expectations of premium brand products. Fundamental to this belief is the responsibility to ensure the food safety of all products specially that the Company Fruits Nectars manufactures. The Company is committed to continually enhance the reputation of the brands it produces and maintain consumer confidence in its products through the development and implementation of quality and food safety systems, standards and practices. All GE MED Sun Zola Hellenic operations commit to continuous improvement, which is measured, evaluated and validated for effectiveness through internal and external audits.

The Company believes that the responsibility for achieving quality commitments lies with each GE Med Sun Zola employee in the ex*****on of their jobs and their relationship with stakeholders. Food safety is the responsibility of all employees that have direct influence on ingredients, packaging, manufacturing, storage and the transport of products. The following food safety and quality principles are the foundation of the GE MED Sun Zola Hellenic commitment to quality:

· Manufacture and deliver fruits Nectar products that meet the highest food safety and quality standards.

· Meet or exceed all statutory and regulatory requirements for quality and food safety.

· Ensure sustainable food safety and quality performance through implementation and certification of effective quality management systems compliant with of GMP 0044, HACCP 0046, FSMS 0054, and The GE MED Sun Zola Management System standards in all operations and PASS where applicable. SLS 143:1999, SLS 1266:2011. ISO 22000:2005,

· Validate the effectiveness of the food safety and quality management systems through internal and external audit processes recognized by the International Standards Organization and the GE MED Sun Zola Company.

· Build food safety and quality capability through structured programs that develop technical skills, increase awareness, manage risk and drive increasing levels of excellence.

· Continually review food safety policies, standards and procedures to effectively manage food safety risks associated with changes in products, processes and technologies.

· Include food safety and quality strategies in the annual business planning process to ensure that food safety and quality remains an integral part of operations.

· Set annual measurable food safety and quality objectives for all operations, and at group level, to ensure continuous improvement and compliance with all standards.

· Ensure that suppliers and contractors embrace the same food safety and quality commitments, and monitor the materials and services they supply through audits and incoming goods inspections.

· Communicate food safety requirements to suppliers, contractors, customers and consumers by establishing specifications for ingredients and packaging materials, product storage and consumer guidelines.

· Communicate food safety and quality aspects, strategies and performance to associates, consumers, customers and principal stakeholders that have an impact on, or are affected by the Company’s food safety and quality management systems

Can an Organization Have a Successful Strategic Plan without Effective Mission & Vision statements

The strategic plan is the blueprint that defines the steps and procedures the business will take to achieve its mission and objectives. Without a mission or vision statement, the business cannot define its objectives, nor can it establish the strategies for success. The successful strategic plan is built around the business’s missions and objectives and, its success is dependent upon the organization attaining its mission.

Back Round of the Company

The company started manufacturing dairy foods products such as curd, yoghurt, fresh milk, at the mean time distributing juice items from MD Company and onjus, & other products from GK e.g., Sugar, Tea, Mineral water, Bas mathi rice etc.. And beginning stages / early periods,

Through the NAMA suppliers is our trusted stake holders we have involved as a food suppliers

We have delivery and distributing quality fresh foods such as vegetables, fruits, milks, from our

Own farm, and others frozen items e.g., bred, rice, sugar, tea, fresh fish, try fish, etc... All

FMCG Items To Government hospitals & Retailers handling and distributing food &

Beverages items to all our Retailers & stake holders. At the same time The “SUN ZOLA” soft

Drink Fruit Nectar manufacturing company is not a new firm it’s expanding to starts its

Operation multiline in Ampara region. It will start with en soft drink product with the name

“SUN ZOLA” soft drink Company is a sole proprietorship firm. The firm its

Operation in limited geographical area. The company’s growth policy is to full fill the

Customer’s need with quality and tasty natural fruits nectar products.

GE-MED, was established since 2003, legal individual business proprietorship registered

Under Divisional Secretary SAINTHAMARUTHU SM/DS/80, and KALMUNAI Municipal

Trade License Name NAMA TRADIN CENTER on 01.01.2006, by foundered / proprietor

Of the firm Mr. A.MUSTHAK AMEEN. This business base Situated in AMPARA District in

Eastern Province,

Later than company was renamed as a Global Economical Micro Enterprises Development [PVT] LTD. Limited liabilities register since 06.05.2013 short form name is GE-MED [PVT] LTD. Under act no 2007-7 register no -92380. Official address no 32, 5/B. Main street MALIKAIKKADU SAINTHAMARUTHU - the company producing natural fruits juices , nectar , fruits preserves dairy products, ice packets, under the brand name [GE-MED Sun Zola ] Nectar are produced from 100 % local fresh fruits and dairy without use of any artificial . Color, or flavors. Or any chemicals The fruit juices and nectar are sold in glass bottles, pet bottles such as mix fruits, woo dapple guava, mango, orange, apple, ext. especially we are manufactured every month 25.to 40 .thousand fruits nectar bottles 1.5 to -2 million turnover per month during the last ten years periods distributing the range of consumers good.[ FMCG] serve the societies.

Mission

“To create and promote great-tasting, healthy, organic beverages in Ampara region”

Vision

“To capture Ampara region market leader by providing quality ORGANIC energy natural fruit nectar in reasonable price in order to keep healthy and tasty fit”

Motto

“Quality you can Trust’

Company Objectives

ü To provide healthy and tasty drinks ( fruit Nectar)

ü Maintain positive, strong growth each year not withstanding seasonal sales patterns

ü Achieve a comprehensive output in market pe*******on

ü Increase the profit margin by adequate percentage through efficiency and economics of scale

ü Maintain a significant research and development and advertisement budget to enhance future product developments

Key success factors

ü Will be the first business

ü Business will be located on a major city like Amapra, Kalmunai, potuvil

ü Product quality will include only natural ingredients

ü Business has the potential for expansion

These components are steps that are carried, in chronological order, when creating a new strategic management plan. Present businesses that have already created a strategic management plan will revert to these steps as per the situation’s requirement, so as to make essential changes.

Components of Strategic Management Process

Strategic management is an ongoing process. Therefore, it must be realized that each component interacts with the other components and that this interaction often happens in chorus.

Why Is Strategic Planning Important to a Business?

Strategic planning provides a road map to help your business get from where you are now to where you want to be. Milestones are expressed in specific terms, as quantifiable objectives that measure whether you're proceeding as planned and, if not, how far you've gone off path.

Long-Term Objectives

Long-term strategic objectives help you think in terms of big picture goals and overarching visions. The farther in the future you're planning, the more difficult it is to set specific goals. You may project an intention to open five stores in the next ten years without knowing what the real estate market or demand for your product will look like that far into the future. This objective can still be useful because it provides a general time frame, a schedule and a plan for ongoing growth, and it will still be relevant, even if you only open four stores in five years.

Long-term objectives provide distant milestones that help you orient your shorter term decisions. For example, if you plan to eventually open five stores, you can build supply chain relationships based on your intention of eventually doing considerably more business with these suppliers. Or, you may approach your branding as an effort that will start off small but build on memes and themes over time.

Short-Term Objectives

Align the short-term objectives in your strategic plan with your longer term goals. This syncing allows you to make incremental steps while also proceeding in a clear direction. If you plan to open five stores in ten years, you'll need to open them one by one, and the opening nearest at hand is your most urgent goal. It's easier to be specific with shorter term objectives, and the more specific you are, the better able you'll be to assess your progress.

If you plan to open your next store in two years, you can base your timeline on this objective, making plans to finalize your lease and financing in six months, complete major construction after a year and half, and spend the final six months on finishing work, furnishing, collecting inventory and training your staff.

Strategic Planning as a Team

Strategic planning is an important tool for bringing your team together and motivating them to work in tandem. If your managers and staff know the company's short- and long-term goals, it's easier to stay on task and rein in projects and individuals when they're veering off track. Strategic objectives provide a shared sense of purpose, a shared language to gauge progress. They also provide milestones to celebrate, once they have been achieved.Feasibility Analysis services feasibility

ü Mango ,Mix fruits , Guava , wood apple, Wild Watermelon, Pineapple Colada, Pink Lemonade, Grape, Cherry, Kiwi, Strawberry, Orange, Lime, Banana, Melon, Papaya and Other products will include soft-drinks in three flavors

ü The business provide unique soft drink with fresh, natural healthy, tasty, delicious and nutrition

ü 200 ml, 500ml for affordable price

ü No anticipated color or ingredients

ü Using environmental friendly glass bottle

ü Continuous research and development

ü Sourcing

Sun Zola soft drinks manufacture and distributes high-quality all equip

The fundamental of our business will be able to full fill the need of the people to remain energetic with our product and affordable price. We take our customer as our first priority while taking our decision.

Our target market of our product is mainly targeted towards those who need natural drink. Now everyone likes to drink natural fruit drinks. We provide 03 levels of sugar level food drinks such as high level sugar, medium level sugar, and low level sugar products in order to consider healthy factor as well.

SWOT Analysis

SWOT Analysis is a useful technique for understanding our Strengths and Weaknesses, and for identifying both the Opportunities open to us and the Threats face. Our SUN ZOLA soft drink company SWOT analysis are as follows.

lead consultant has a strong reputation in the market. We can change direction quickly if we find that our marketing

Strengths

ü We have low overheads, so we can offer good value to customers.

ü Powerful management team and well trained staff

ü Fully helpful stack holders

ü Cannot easily imitate our product

ü Natural fruit drink

ü All manufacturing formula we have ( unable to copy by others)

ü Founder and our teams with well Marketing knowledge’s

Weaknesses

ü Our company has little market presence or reputation.

ü We have a small staff, with a shallow skills base in many areas.

ü We are vulnerable to vital staff being sick or leaving.

ü Our cash flow will be unreliable in the early stages.

ü MD and SMAK , KIST competitors are producing multi line products from the fruits

Opportunities

ü Our business sector is expanding, with many future opportunities for success.

ü Local government wants to encourage local businesses.

ü Our competitors may be slow to adopt new technologies.

ü Demand for natural fruits products

ü Heath concept support natural fruits nectars

ü Eastern province populations have more buying power natural foods.

ü All other related have a chemical mix. OUR products is fresh Nectar.

Threats

ü Developments in technology may change this market beyond our ability to adapt.

ü A small change in the focus of a large competitor might wipe out any market position we achieve.

ü Climate changes it will effect to get fresh fruits

ü Changes in the government policy and regulations

Strategic Management & Strategic Planning Process

Definition

Strategic management process

Is a method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage?

Strategic planning process

is a systematic or emerged way of performing strategic planning in the organization through initial assessment, thorough analysis, strategy formulation, its implementation and evaluation.

What is that strategic planning process?

The process of strategic management lists what steps the managers should take to create a complete strategy and how to implement that strategy successfully in the company. It might comprise from 7 to nearly 30 steps [4] and tends to be more formal in well-established organizations.

The ways that strategies are created and realized differ. Thus, there are many different models of the process. The models vary between companies depending upon:

Organization’s culture.

Leadership style.

The experience the firm has in creating successful strategies.

All the examples of the process in this article represent top-down approach and belong to the ‘design school’.

Components of strategic planning process

There are many components of the process which are spread throughout strategic planning stages. Most often, the strategic planning process has 4 common phases: strategic analysis, strategy formulation, implementation and monitoring (David[5], Johnson, Scholes & Whittington[6], Rothaermel[1], Thompson and Martin[2]). For clearer understanding, this article represents 5 stages of strategic planning process:

Initial Assessment

Situation Analysis

Strategy Formulation

Strategy Implementation

Strategy Monitoring

Initial Assessment

Components: Vision statement & Mission statement Tools used: Creating a Vision and Mission statements.

The starting point of the process is initial assessment of the firm. At this phase managers must clearly identify the company’s vision and mission statements.

Business' vision answers the question: What does an organization want to become? Without visualizing the company’s future, managers wouldn’t know where they want to go and what they have to achieve. Vision is the ultimate goal for the firm and the direction for its employees.

In addition, mission describes company’s business. It informs organization’s stakeholders about the products, customers, markets, values, concern for public image and employees of the organization (David, p. 93)[5]. Thorough mission statement acts as guidance for managers in making appropriate (Rothaermel, p. 34)[1] daily decisions.

Situation Analysis

Components: Internal environment analysis, External environment analysis and Competitor analysis Tools used: PEST, SWOT, Core Competencies, Critical Success Factors, Unique Selling Proposition, Porter's 5 Forces, Competitor Profile Matrix, External Factor Evaluation Matrix, Internal Factor Evaluation Matrix, Benchmarking, Financial Ratios, Scenarios Forecasting, Market Segmentation, Value Chain Analysis, VRIO Framework

When the company identifies its vision and mission it must assess its current situation in the market. This includes evaluating an organization’s external and internal environments and analyzing its competitors.

During an external environment analysis managers look into the key external forces: macro & micro environments and competition. PEST or PESTEL frameworks represent all the macro environment factors that influence the organization in the global environment. Micro environment affects the company in its industry. It is analyzed using Porter’s 5 Forces Framework.

Competition is another uncontrollable external force that influences the company. A good example of this was when Apple released its IPod and shook the mp3 players industry, including its leading performer Sony. Firms assess their competitors using competitors profile matrix and benchmarking to evaluate their strengths, weaknesses and level of performance.

Internal analysis includes the assessment of the company’s resources, core competencies and activities. An organization holds both tangible resources: capital, land, equipment, and intangible resources: culture, brand equity, knowledge, patents, copyrights and trademarks (Rothaermel, p. 90)[1]. A firm’s core competencies may be superior skills in customer relationship or efficient supply chain management. When analyzing the company’s activities managers look into the value chain and the whole production process.

As a result, situation analysis identifies strengths, weaknesses, opportunities and threats for the organization and reveals a clear picture of company’s situation in the market.

Strategy Formulation

Components: Objectives, Business level, Corporate level and Global Strategy Selection Tools used: Scenario Planning, SPACE Matrix, Boston Consulting Group Matrix, GE-McKinsey Matrix, Porter’s Generic Strategies, Bowman’s Strategy Clock, Porter’s Diamond, Game Theory, QSP Matrix.

Successful situation analysis is followed by creation of long-term objectives. Long-term objectives indicate goals that could improve the company’s competitive position in the long run. They act as directions for specific strategy selection. In an organization, strategies are chosen at 3 different levels:

Business level strategy. This type of strategy is used when strategic business units (SBU), divisions or small and medium enterprises select strategies for only one product that is sold in only one market. The example of business level strategy is well illustrated by Royal Enfield firms. They sell their Bullet motorcycle (one product) in United Kingdom and India (different markets) but focus on different market segments and sell at very different prices (different strategies). Firms may select between Porter’s 3 generic strategies: cost leadership, differentiation and focus strategies. Alternatively strategies from Bowman’s strategy clock may be chosen (Johnson, Scholes, & Whittington, p. 224[6]).

Corporate level strategy. At this level, executives at top parent companies choose which products to sell, which market to enter and whether to acquire a competitor or merge with it. They select between integration, intensive, diversification and defensive strategies.

Global/International strategy. The main questions to answer: Which new markets to develop and how to enter them? How far to diversify? (Thompson and Martin, p. 557[2], Johnson, Scholes, & Whittington, p. 294[6])

Managers may choose between many strategic alternatives. That depends on a company’s objectives, results of situation analysis and the level for which the strategy is selected.

Strategy Implementation

Components: Annual Objectives, Policies, Resource Allocation, Change Management, Organizational chart, Linking Performance and Reward Tools used: Policies, Motivation, Resistance management, Leadership, Stakeholder Impact Analysis, Changing organizational structure, Performance management

Even the best strategic plans must be implemented and only well executed strategies create competitive advantage for a company.

At this stage managerial skills are more important than using analysis. Communication in strategy implementation is essential as new strategies must get support all over organization for effective implementation. The example of the strategy implementation that is used here is taken from David’s book, chapter 7 on implementation [5]. It consists of the following 6 steps:

Setting annual objectives;

Revising policies to meet the objectives;

Allocating resources to strategically important areas;

Changing organizational structure to meet new strategy;

Managing resistance to change;

Introducing new reward system for performance results if needed.

The first point in strategy implementation is setting annual objectives for the company’s functional areas. These smaller objectives are specifically designed to achieve financial, marketing, operations, human resources and other functional goals. To meet these goals managers revise existing policies and introduce new ones which act as the directions for successful objectives implementation.

The other very important part of strategy implementation is changing an organizational chart. For example, a product diversification strategy may require new SBU to be incorporated into the existing organizational chart. Or market development strategy may require an additional division to be added to the company. Every new strategy changes the organizational structure and requires reallocation of resources. It also redistributes responsibilities and powers between managers. Managers may be moved from one functional area to another or asked to manage a new team. This creates resistance to change, which has to be managed in an appropriate way or it could ruin excellent strategy implementation.

Strategy Monitoring

Components: Internal and External Factors Review, Measuring Company’s Performance Tools used: Strategy Evaluation Framework, Balanced Scorecard, Benchmarking

Implementation must be monitored to be successful. Due to constantly changing external and internal conditions managers must continuously review both environments as new strengths, weaknesses, opportunities and threats may arise. If new circumstances affect the company, managers must take corrective actions as soon as possible.

Usually, tactics rather than strategies are changed to meet the new conditions, unless firms are faced with such severe external changes as the 2007 credit crunch.

Measuring performance is another important activity in strategy monitoring. Performance has to be measurable and comparable. Managers have to compare their actual results with estimated results and see if they are successful in achieving their objectives. If objectives are not met managers should:

Change the reward system.

Introduce new or revise existing policies.

The key element in strategy monitoring is to get the relevant and timely information on changing environment and the company’s performance and if necessary take corrective actions.

Different models of the process

There is no universal model of the strategic management process. The one, which was described in this article, is just one more version of so many models that are established by other authors. In this section we will illustrate and comment on 3 more well-known frameworks presented by recognized scholars in the strategic management field. More about these models can be found in the authors’ books.

Figure 1. David’s Model of the Strategic Management’s Process

Source: David (p. 46)

Stages

Strategy Formulation

Strategy Implementation

Strategy Evaluation

Steps

Develop vision and mission

External environment analysis

Internal environment analysis

Establish long-term objectives

Generate, evaluate and choose strategies

Implement strategies

Measure and evaluate performance

Benefits

Indicates all the major steps that have to be met during the process.

Illustrates that the process is a continuous activity.

Arrows show the two way process. This means that companies may sometimes go a step or two back in the process rather than having to complete the process and start it all over from the beginning. For example, if in the implementation stage the company finds out that the strategy it chose is not viable, it can simply go back to the strategy selection point instead of continuing to the monitoring stage and starting the process from the beginning.

Drawbacks

Represents only strategy formulation stage and does separate situation analysis from strategy selection stages.

Confuses strategy evaluation with strategy monitoring stage.

Figure 2. Rothaermel’s The Analysis-Formulation-Implementation (AFI) Strategy Framework

Source: Rothaermel (p. 20)

Stages

Analysis

Formulation

Implementation

Steps

Initial analysis

External and internal analysis

Business or corporate strategy formulation

Implementation

Benefits

Shows that the process is a continuous activity.

Separates initial analysis (in this articles it’s called initial assessment) from internal/external analysis.

Emphasizes the main focus of strategic management: “Gain and sustain competitive advantage”.

Drawbacks

Does not include strategy monitoring stage.

Arrows indicate only one way process. For example, after the strategy formulation the process continues to the implementation stage while this is not always the truth. Companies may go back and reassess their environments if some conditions had changed.

Figure 3. Thompson’s and Martin’s Strategic Management Framewor

Source: Thompson and Martin (p.36)

Stages

Where are we?

Where are we going?

How are we getting there?

How are we doing?

Steps

Situation appraisal: review of corporate objectives

Situation assessment

Clarification of objectives

Corporate and competitive strategies

Strategic decisions

Implementation

Monitor progress

Drawbacks

Arrows indicate only one way process.

Benefits of Strategic Management

Benefits

Indicates all the major steps that have to be met during the process.

Shows that the process is a continuous activity.

The model is supplemented by 4 fundamental strategic management questions.

Recommendations for the SUN ZOLA

The strategic plan analyzes the internal and external factors that affect the business and defines the procedures and steps the business will take to achieve the defined goals and objectives. While the goals and objectives are quite similar to the strategic plan, the strategic plan is more specific. This plan details the employees and clients that are required to achieve success, as well as the budget and resources that must be used to complete the task.

In order to develop successful strategies, the organization must have goals and objectives. The goals are short and long term statements that define a series of plateaus the business must climb in order to achieve its ultimate goal, the mission. The objectives provide specific and measurable actions that are required in order to meet the organization’s goals. Goals and objectives include deadlines and measurable actions that are used to determine if the organization is meeting its objectives in a timely and affordable fashion.

Summery

It is rare that the company will be able to follow the process from the first to the last step. Producing a quality strategic plan requires time, during which many external and even internal conditions may change. This results in the flawed strategic plan which has to be revised, hence requiring even more time to finish.

On the other hand, when implementing the strategic plan, the actual results do not meet the requirements of the strategic plan so the plan has to be altered or better methods for the implementation have to be discovered. This means that some parts of strategic management process have to be done simultaneously, which makes the whole process more complex.