An Analysis of Strategic Formulation and Implementation for Al-Majeed Plastic Industrial Company
Talal Abu Ghazaleh School of business
Dr. Mamoun Akroush
Fall Semester 2013/2014
Table of Contents
Executive Summary 4
Company Overview 5
Levels of strategy 6
Organizations’ values 6
Organization’s vision 7
Organization’s Mission 7
Organizations’ Goals and objectives for the year 2014 7
MACRO Environment Analysis 8
Industry competition analysis-Porter’s five-forces 12
Product Portfolio and Industry life cycle 16
Competitors Analysis 17
Identify strategic group of competitors 17
Competitors’ ...view middle of the document...
This has helped in developing an understanding of the factors that affect the company’s strategy.
Al-Majeed Industrial Company adopts a best value provider strategy. The essence of this strategy is to provide customers with products that have appealing features at lower costs than rivals creating a greater perceived value by the customer. This paper included an analysis of the company’s strengths and weaknesses, value chain, resources, capabilities, and critical success factors that enabled the company to pursue such a strategy. An understanding was also developed on the company’s governance, culture, and structure to identify how these affect the strategy selected by the company.
After studying the company’s strategy, the factors that affect it and the elements that support it, analysis was directed at the mechanism of how the company intends to implement the chosen strategy - The practical realization of the strategy and its performance evaluation criteria and methods.
The final initiative was taken to understand future scenarios of the company, what are its future plans, strategies, and critical decision on how the company plans to conduct business and maintain its stand in the market.
Al-Majeed for Plastic Industries Co. was established on October 11th 1995. It is specialized in the production of plastic containers and covers. These containers are used in food production (dairy, in particular) and in the production of oils and cosmetics.
Al-Majeed for Plastic Industries Co. started its first business using one injection machine. In 1996, the Company dealt with the Petroleum refinery Company and produced the seals used on gas cylinders. The tender included the supply of around 18 million pieces.
Between 1996 and 1997, the demand was increased to 52 million pieces, a matter which required the Company to buy two more injection machines to satisfy the growing demand. Knowing that such tenders are normally limited, and there are greater chances to produce other products, the Company started to conduct studies and researches to create new products that serve the dairy industry. At that stage, the Company began to invest its profits to serve that end.
The production started with buying two new blowing machines. Due to the high quality of its products, the Company increased its market share in this field, a matter which increased the annual growth of the Company by 25%.
In order to meet the growing demands on its products, the Company continued to invest its wealth in buying new machines. Currently, the Company owns blowing machines, injection machines (PP+ Pe), injection machines type (Pet), and a blowing machine type (Pet), which produced a large set of products that satisfy the needs of the local market, and the surplus was exported.
The Company plans to expand its business by incorporating new machines, including (PE) blowing machines, (Pet) blowing machines, (PP+Pe) injection machines, and (Pet)...