final presentation of pom
TRANSCRIPT
Team Members: NAEEM IQBAL ANSARI MUHAMMAD SAJID JUNAID KHURRAM IMRAN LATIF EJAZ AKHTAR E/M-SPR11-040 E/M-SPR11-013 E/M-SPR11-025 C/E-SPR11-023 C/C-SPR11-018
Breakup of PresentationIntroduction of Micro drip (Pvt)Ltd Product Overview Application of Management Tools SWOT Analysis PEST Porter Five Forces Balance Score Card
Introduction of MICRODRIP (Pvt)Ltd1.
Micro Drip (MD) is a drip irrigation company that develops and provides high efficiency irrigation system (Drip, sprinkler and pipe irrigation) for the purpose of saving fertilizer, water, energy; enhance crop production and poverty alleviation all over Pakistan.
2.
Initially in 2007 MD started his business in one geography and in one market segment, that is, interior Sindh
3. 4.
In present days Micro drip is working in all over the Pakistan. Government Support to Micro Drip
PRODUCT OVERVIEWy Rain gun Irrigation System y Drip Irrigation system y Bubbler Irrigation System y Landscape Irrigation System
RAIN GUN IRRIGATION SYSTEM
DRIP IRRIGATION SYSTEM
BUBLLER IRRIGATION SYSTEM
LANDSCAPE IRRIGATION SYSTEMy
MISSION AND VISSIONMissionMake irrigation systems more relevant for the farmers by adapting it to local conditions and farmer s requirements
VisionIncrease agricultural productivity and save energy with efficient irrigation systems leading to a sustainable agriculture growth and poverty alleviation.
Application of SWOT AnalysisStrengthsI I c st tec l y C etitive rices lar & ivisi le ri
iverse r
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cts
C
ercial & s cial a e
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Application of SWOT AnalysisWeaknessesLow brand awareness
Water source limitation
IDEI non pressure compensating laterals
maller ydro-zones Limits area under cultivation
Application of SWOT AnalysisOpportunitiesIDEI products for IP model Premium drip products for Tunnel segment
RSPs water conservation and livelihood projects
Rain guns for IP and retail Government subsidy HEIS project
Working in untapped areas of Pakistan
Application of SWOT AnalysisThreatsLack of drip technology awareness High up-front capital cost
Undeveloped retail market
Cyclical nature of business
Crop rotation limitation Slow adoption process
PEST ANALYSISy Pest analysis which tells
about the external factors or macro environmental compatibility with the firm. As its mention earlier Pest is the abbreviation of Political, Economical, Social and Technological.
Political Factors Pest analysis which political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Now a day in Pakistan, there is political instability that cause serious problem for the country because tax rate is increasing day by day, and nation is suffering from the wrong policies and their impacts. About the external factors or macro environmental compatibility with the firm. As its mention earlier Pest is the abbreviation of Political, Economical, Social and Technological.
Political Factors As micro drip is working for the saving of water and
energy and enhancing the crop production so there is no important drawback for micro drip from government side . In fact government is appreciating and providing subsidy to farmers for this purpose but there is huge uncertainty in this subsidy.
Economic Factors. Factors include economic growth, interest rate, exchange rate and the inflation rate. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect firm's cost of capital and rate of investment so to what extent a business grows and expands is depend on it. As micro drip is importing some of its system parts from foreign countries so economically its threat for this company but micro drip is continuously serving his country by compromising on its margins to a great extend.
Social Factors Factors include the cultural aspects age distribution,
population growth rate, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. As in present days there is a great shortage of water in
our country so products of micro drip are highly appreciated in all over the Pakistan which is also due to unique products of this company
Social Factorsy Its also honors for micro drip that it not only works for
revenue generation but developing market in flooded areas of Pakistan with very low cost system that is admirable.
Technological Factors Factors include technological aspects such as Research
and development activity, automation, technology incentives and the rate of technological change. This water conservation technology is very efficient as
adopted by all progressive countries so technology is highly acceptable for this country which has water crises.
Technological Factors As this technology is new in Pakistan that s why
customer awareness is needed that micro drip is doing in all over the country by advertising and installing the demonstration sites
Micro Drip Pvt. Ltd
Porter s Theoryy Porter's five forces is a framework for the industry
analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979. It draws upon Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability
Porter s Forces Model
Potential new entrants In MICRO DRIPy It can be in the New Entrant category of Porter's 5
forces, Micro Drip has threat from 17 new partner organizations of PPAF and other NGOs. This can bring new potential and threat to Micro Drip. However, in South they have broken ground with Indus Earth and OSDI and have won a sizable y project with Indus Earth and a pilot project with OSDI. In the North, they have successfully reached out to RCDS and have won 4 rain gun projects. After successful completion of their start up projects, they are confident in winning more projects with these IP s in the future.
Potential new entrants In MICRO DRIPy With current IP partners and new prospective
partners, MICRO DRIP is gaining access to the markets and expanding its footprint. This is creating the required awareness and lead to market creation and ultimate move to retail sales so that it could be more beneficial to the small farmers.
Bargaining Power of Buyersy Buyers, from the strong competition inside of the
market find themselves in a very favorable position.y Since competition is so strong between dealers and
farmers, farmer will often do research on a products before making a purchase.
Bargaining Power of Buyersy The high quantity of dealer s forces prices to be very
negotiable and the farmers often knows exactly what the dealer paid for products. y Thus, farmers are in an enviable position: The market supply is strong, competition between farmer and dealer is very intense, and there is no set price.
Bargaining Power of Suppliers:y Micro Drip suppliers have been known to be some of the most dedicated suppliers in the industry. By virtue of the Just-In-Time production concept pioneered by them, this industry itself has seen a very positive relationship develop between its suppliers and producers. y Suppliers are expected to make deliveries of quantity in small quantities several times a day. y Micro Drip, by reducing its inventory, has been able to speed up production costs, save money by not letting products un
Threats and Substitutesy There are more than 50 companies registered with MINFAL Water Management Cell dealing in drip / rain gun irrigation projects throughout the country. y Most of them saw the government subsidy program as a lucrative opportunity and joined the bandwagon with some prominent names of agriculture industry. y The government subsidy was fixed @ Rs. 36,000/acre irrespective of the cost and type of the system to a maximum of 50 acres per farmer.
Industry Competition/Rivalry between Competitorsy There are more than 50 companies registered with MINFAL Water Management Cell dealing in drip / rain gun irrigation projects throughout the country. y Most of them saw the government subsidy program as a lucrative opportunity and joined the bandwagon with some prominent names of agriculture industry. y The government subsidy was fixed @ Rs. 36,000/acre irrespective of the cost and type of the system to a maximum of 50 acres per farmer
Industry Competition/Rivalry between Competitorsy The government subsidy was fixed @ Rs. 36,000/acre irrespective of the cost and type of the system to a maximum of 50 acres per farmer. y The industry sales were totally subsidy dependent and no effort was made by any company to invest in the retail market, therefore a distributor network is conspicuous by its absence. The following table highlights the competitor activity during the last 3 years:
Where Developed?y Harvard Business School y Dr. Robert Kaplan y Dr. David Norton y Utilized by industry y General Electric y Ford Motor Company y IBM y Walt Disney World
What is it?y The BSC translates mission and strategy into objectives
and measures, organized into four different perspectives: financial, customer, internal business process, and learning and growth. y The BSC provides a framework, a language, to communicate mission and strategy. y The four perspectives of the BSC permit a balance of ST and LT objectives, between desired outcomes and performance.
Why Developed?y Financial Measures are no longer the only measure
responsible for success of a company. y Others includey Customer Satisfaction y Better Internal Process y Learning and Growth
y All of these should work together (in Balance) for the
success of the company y All systems are part of a whole and every action taken affects the sum of the parts
Financial
Customer
Vision and Strategy
Internal Business Process
Learning and Growth
Balance Scorecard Philosophy, Vision & MissionTop Bottom Reflection Forward Looking
Help Focusing
Vision To upgrade our existing facilities, systems and enhance in house capabilities to meet the demands of Pakistan s agriculture sector in making it nation wide competitive and modern.
Integrative
Mission
To increase agricultural productivity with efficient irrigation systems leading to a sustainable agriculture growth and poverty alleviation.
Balance score card of Micro DripFinancial Perspective1. Projects Profitability Measures 2. Return on Capital Employed in terms of Customer Satisfaction & Services Provided 3. Systems for Reliable Profit Forecast
Customer Perspective1. 2. 3. 4. Customer Concept Customer Satisfaction Low Priced Solutions Modernize the irrigation system 5. Serve the small and low income farmers 6. Increase the agricultural productivity
Internal Perspective1. R&D Capabilities 2. Measuring Success in terms of in house Production Capabilities. 3. Project Performance Index 4. Projects Closeout Cycle
Growth Perspective1. %age Revenue Measured on the Basis of Quality of Services and Customer Satisfaction. 2. Ability to Adapt Changing trends in Technology and Culture. 3. Employees Skills and Expertise. 4. Measuring Criteria for Improvements. 5. Value added by Employees
Application of Balance ScorecardCustomer PerspectiveObjectiveso Customer Concept o Customer Satisfaction o Products o Market Share
Measureso Making Independent Entity o Customer Satisfaction Index o Low Priced Solutions o Increase in Share
Targetso Innovation, Quality & Delivery Based Evaluations o Enhanced Customer Satisfaction o Awareness of drip irrigation and develop BOP market. o 20% Revenue from retail market
Financial PerspectiveObjectiveso Projects
Measureso Profitability Measures
Targetso 80 % Success Rate of Execution
o Return on Capital Employed
o Usability of Investment
o PDCA Teams of Each Project
o Profit
o Systems for Profit Forecast
o Systems for Reliable Profit Forecast
Application of Balance ScorecardInternal PerspectiveObjectiveso Research & Development o Project Performance Index o Projects Closeout
Measureso Inhouse Capabilities o PDCA Cycle o Time Consumed
Targetso Replication of Modern Carriages & Wagons o 100% Forecasted Results o Forecasted Task Time
Growth PerspectiveObjectiveso %age Revenue o Accepting Change
Measureso Indigenization and Services to small farmers o Ability to Adapt Changing Trends in Technology and Culture. o Measuring Criteria
Targetso 30 % of Budgetary Requirements o Gap Minimization in Processes and Practices o Continuous Improvement
o Improvements.
o Employees Trainings
o Skill Measuring Charts
o Level of Value Addition
Any Question