Fauji Foods Analysis - Project related work on planning PDF

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Project related work on planning...

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Company’s problem Not focusing on core value products such on Nurpur Butter and Cheese. Deviated interest on other supporting products such as Dostea Tea Whitener. 1. There was a new innovation of Tea Whitener which was introduced in Pakistan which was a cheaper alternate to milk. Resultantly, consumers shifted to tea creamers products. That created a lot of demand in the Pakistani market especially the north, thus all companies to gain competitive advantage ventured into the business. 2. Majority companies such as Nestle, Olpers and Fauji Foods gained competitive edge by grasping the tea creamer market and by making their product easily accessible in the local market. 3. There was managerial preferences to not focus on selling butter and cheese due to lower margins in the profitability whereas the tea creamer had higher profit margins. So the focus was short term to make quick earnings. Employees resisting to managerial change within the organization. 1. There was drastic managerial changes within the organization due to which the priorities and values of the organization were being changed. 2. Favoritism and internal politics created resistance to change and the behavior of the employees was effected negatively. 3. Organizational changes created instability in the policy makings and culture. Due to high turnover rate, there is lack of motivation amongst employees. 1. Due to heavy financial losses from 2017-2019, the company fired many employees during the duration as a cost saving strategy. 2. But high turnover rate, created many behavioral fears amongst existing employees amongst which was fear of losing the job, de-motivation to perform assigned tasks. The result was decrease in individual output by the employees. Focusing on short term projects and not long term projects. 1. Fauji Foods has been giving preferences to short term projects to create sustainability and not long term projects. 2. The company lost focus on potential customers which were accessible for long term projects with larger chunk of market shares. 3. Short term projects meant short returns which were not enough to sustain the daily operations of the company and the company had to take support of financial institutions to provide loans and credit lines to budget the projects / capital expenditures. Lack of market research to identify accurate demographics and preferences of customers. 1. Marketing and branding strategy has always remained weak since 2016 and cheaper marketing / promotional campaigns restricted to only distributors meant that the end users were not able to gain benefit out of the direct offerings. 2. Sale incentives were lacking for the distributors and product reach was never fully analyzed by the Marketing department.

3. Too many experiments by performing research on introducing products which were already available in the market by the competition or the preference of the consumers was not there due to lack of market / demographic preferences. 4. Avoiding high end / costly advertising projects during the initial launch or rebranding of the core product lines. Not focusing on cost optimized and efficient processes. 1. Having few alternate suppliers meant that Fauji Foods had to rely on single supplier for the material. 2. Less alternate suppliers meant that the material being procured would be more expensive due to reliability on monopolized supplier approach. 3. Material management, warehousing, logistics, spare parts etc all were being purchased and thus the functional departments were not able to create competitive supplier base. 4. End to end processes were heavily manual dependent and there was less utilization of technology to support the same. SAP was implemented in end of 2017 before which there was a lot of waste in the processes and procedures. 5. Efficiency was compromised in the long term due to errors due to manual working dependency....