Strategic Management

Research Proposal 1

(K&N’s Chicken, Pakistan)

Submitted to:

Miss Farah Zarak

Submitted by:

Muhammad Owais Rana

Abdur Rehman Bakhshi

Muhammad Waqas Ranjha

Jawwad Jahan

Jahanzeb Khan

Khawaja Omer Javed

Dated:

25th October 2010

Company Background

The year 1964; Pakistan a young independent nation forging ahead towards a dream: self

sufficiency in food production. Malnutrition remained a major problem and one out of four

children died before attaining the age of five. 80% of ailing children were affected with diseases

caused by protein, vitamin and mineral deficiency. Poultry production, the quickest and least

expensive way of filling the protein gap was planned to overcome malnutrition. Backyard

poultry farming had to graduate to a more professional level. January 1964, a young man, Khalil

Sattar, still a college student, had the vision to foresee a need to establish poultry farm of 1,000

chicks. Little had he known his flock was to become the foundation stone of K&N’s.

This was the simple, inspired and nationalistic beginning of K&N’s with a single-minded

objective of providing better nutrition for Health and Happiness of the Nation. Following are the

business activities of K&N’s Pakistan:

1. Poultry Breeding

2. Hatching

3. Broiler Growing

4. Feed Milling

5. Poultry Processing

6. Distribution Systems and K&N’s Chicken Stores

7. Quality Assurance Lab

8. Poultry and Diagnostic Research Institute

Keeping the business activities in mind, following are the product lines of K&N’s Chicken in

Pakistan:

1. Ready-to-cook Products

2. Fully cooked Products

3. Deli Line Products

Vision Statement:

Providing better nutrition for Health and Happiness of the Nation

Mission Statement:

Our prime mission & vision is to serve chicken food products that are absolutely free from

contaminations and are rich in respective nutrients. Moreover, we strive to maintain hygienic

level so as to serve fresh non-vegetarian food products to our customers.

Proposed Vision Statement:

Our vision is based on four basic values of Absolute Integrity, Enthusiastic Diligence,

Continuous Improvement and High Quality are at the core of all operations which provide an

impelling urge for attaining perfection.

Proposed Mission Statement:

K&N’s has a strict plan to follow in terms of target orientation. Each product is based on the rule

that it should be healthy to eat and according to the taste of consumers. In this regard no

compromise is solicited on hygiene and quality. Making K&N’s the leading producer and a

company with huge demand for its products is the aim of K&N’s Pakistan.

External Assessment

External Factor Evaluation

Competitive Profile Matrix

Internal Assessment:

Internal assessment focuses on identifying a firm’s strengths and weaknesses, in different

functional areas which are:

Management

Marketing

Finance/Accounting

Productions/Operations

Research and Development

Management Information Systems

1. Management:

Management audit has five different components without which, it cannot be completed. Those

are:

a. Planning

b. Organizing

c. Motivating

d. Staffing

e. Controlling

The only thing certain about the future of an organization is change, and planning is the essential

bridge between the present and the future that increases the likelihood of achieving goals.

If we look at the history of K&N’s, in 1964, the project was a single-minded objective of

providing better nutrition for Health and Happiness of the Nation.

The plan was to start a small broiler farm of 1,000 chicks which has now become very popular

with more than 100 shops across Pakistan and its wide range of products is now a necessity of

many households.

2. Marketing:

Management is the process of defining, anticipating, creating and fulfillment of customer’s needs

and wants for products and services. This particular head has seven basic functions:

a. Customer Analysis

b. Selling Product/Service

c. Products and Services Planning

d. Pricing

e. Distribution

f. Marketing Research

g. Opportunity Analysis

We will be discussing how K&N’S covers all of the above mentioned and analyze what better can

be done to improve the overall marketing efforts

3. Finance/Accounting:

Finance condition is often considered the single best measure of an organizations competitive

position and overall attractiveness to investors.

K&N’S finance positions have been sky rocketing in recent years and are growing rapidly in the

poultry industry of Pakistan. We will reviewing some of the finance statements and looking at the

overall growth rates, profits and ratios over the years.

4. Productions/Operations:

This area consists of all the functions and activities that transform inputs into goods and services.

How raw material is processed and used to make finished goods.

In our project we will see how K&N’S hatch the chicken eggs and what quality of feed they use

to spoon the chicks and then how they process the chicken to get to the finished good.

5. Research and Development:

The fifth major area in the internal strengths and weaknesses of an organization is R&D.

We will look at how the company uses R&D which leads them to a superior product and service

to help gain competitive advantage. We will also see how the allocation of their finances to their

R&D is done and what percentage is selected to establish a connection to a strong research and

development team.

6. Management Information Systems:

Information ties all the businesses functions together and provides the basis for all managerial

decisions being the cornerstone of any organization. Information represents a major source of

competitive advantage or disadvantage. Assessing a firm’s internal strengths and weaknesses

using MIS is a critical dimension.

We will have a sneak peak into the K&N’S MIS to gather knowledge on how the firm is

collecting its data for raw materials and then organizing them. How they use MIS to gather

data about marketing, finance, production and personnel matters internally, and social, cultural,

environmental, demographic, economical and legal, governmental, technological and competitive

factors externally.