Assignment On Berger Paints
Assignment On Berger Paints
Assignment On Berger Paints
BERGER
PAINTS
Introduction
Vision, Mission & and objective
Berger a learner organization
Strategic decision making
Planning mode
Corporate governance
Role of board of director
Social responsibilities (Economic Legal , Ethical , Discretionary )
Sustainability
Ethical code of conduct
Ethical approach
Environment scanning
Macro environment
Task environment
Prospector strategy
External Factor Analysis Summary (EFAS)
Core competency
Distinctive competency
Business model (Time Model)
Value chain
Financial leverage
Research and development(R&D)
Strategic operational
Human resource
STRATEGIC INFORMATION SYSTEMS
internal Factor Analysis Summary (IFAS)
Introduction
Berger is one of the largest paint manufacturing company and one of the well
growing paint company in Pakistan since its inception from 1950.Despite many
challenges, Berger Paints has succeeded in staying at the forefront of Pakistans
paint.
The strategic management of Berger paint is given below
Vision
We will become the leading paints and associated products manufacturing and
marketing company in Pakistan ensuring best returns to our investors & highest
customer satisfaction.
Mission
Objective
The company utilizes all available resources to pursue its EHS (Health, Safety &
Environment) objectives by striving to attain economic prosperity and ecological
balance.
Planning mode:
Corporate Governance
BERGER PAINTS PAKISTAN became a public limited company in 1974.At present it
has 7 board of director in which Mr. Maqbool H.H. Rahimtoola is the chairman and Dr.
Mahmood Ahmad is the chief executive
Berger paints has nominal participation of the board of director with limited
degree of involvement in reviewing the performance or review of key decision and
program of management. The role is widely occupied by CEO and its management
team. However the key decision is made by board of director.
Social responsibility
Berger Paints believes in growth and fostering of human assets which eventually
contribute for the wellness of respective families, their country and humanity at
large which indicate that Berger paints is following the carol view of social
responsibility.
Economic responsibilities
Berger is a most trust worthy name in quality paints. This proud reputation has
helped them very well in performing the economic responsibility of providing
value and then generating money to repay its shareholder.
Legal responsibilities
Ethical responsibilities
Following the moral correct path as well as to follow generally held believe related
to behavior is first priority of Berger paints. HAJ draw, birthday celebrations
celebrating Pakistan day etc. are the activities that help Berger feel its employee
like a family.
Discretionary responsibilities
Berger paint has carried out activities such as helping schools and hospital in
painting to support their dignified cause of corporate social responsibility (CSR).
Berger paints Pakistan was given Corporate Social Responsibility awards 2015 for
its recognized effort on (CSR).
Berger is also a part of (NOP) national outreach program that act as a platform of
knowledge sharing among people as seminar are conducted on different topic.
NOP under the name of rising star is conducting a free training program that is
also supported by Berger paints Pakistan.
Sustainability
Berger has very well satisfied the social responsibility i.e. economic, ethical,
discretionary, and legal responsibilities this has led to sustainable business
corporation of Further our journey for excellence is fully supported by continues
learning along with capability and skill development.
Similarly sustainable growth is ambition of Berger paint with right kind of people
that possess an unmatched capability and skills along with commitment
Ethical approach
Environmental scanning
3. Task environment
Natural environment
It is very important while making strategic decision firm must take into account
the natural environmental issue as they affect the performance of business
organization e.g. global warming as climate change, increasing sea level etc. are
becoming unpredictable and uncertain that is why in Berger paints a special focus
is given on protecting the environment as well the safety and health of customer,
employee and communities at large. The company has done tremendous job to
fulfill its Environment, Health& Safety EHS objectives by attaining economic
prosperity and environmental balance.
Societal Environment
Health, Safety & Environment
Special focus is placed at Berger on protection of the environment as well as
health and safety of employees, customers and communities where it operates.
The company utilizes all available resources to pursue its EHS objectives by
striving to attain economic prosperity and ecological balance.
Berger manufacturing facility conforms to the international and national
environmental standards where company is manufacturing environmental
friendly products to minimize the potential effect on the people and the
environment.
A clean and pollution-free environment is ensured at the companys
manufacturing facilities through a Solvent Recovery Plant that recycles used
solvent, a Dust/Vapor extraction system and a Xylene recovery system.
Safety training programs are organized on a regular basis for all personnel
and factory workers and vendors to ensure safety of the work environment.
Strict safety regulations for PPEs (Personal Protection Equipments) and work
procedures are enforced at every step .In addition, safety officers conduct regular
Safety Audits that identify and rectify any non-compliance and enforce proper
maintenance of safety procedures with active cooperation of all employees.
Macro Environment:
PEST: PEST is an economic tool which is used in evaluating the environment so
that we can understand the suitability of the environment for making strategy for
the Berger paints. PEST is actually abbreviation for political, environment, social
and technology.
Political factor
Political factor involve government regulation. Laws on business, pollution,
employment and taxation are the factor applies on the organization and they are
bound to follow them.
Trends:
Interest rates
Similarly imports policy as Berger imports its paints from Dubai. Pollution control
law health and safety law and environmental law are too followed by burger.
Energy crises in Pakistan as well as its increasing cost day by day is one of the
factors that is of great concern for Berger paints Pakistan limited while making
strategic decision making.
Economic situation
Inflation: Generally increase in price in an economy that result fall in purchase
value of money is inflation. So if the inflation rate is increased purchase value will
decrease. Thus a moderate inflation rate is desirable for Berger paints. Trend of
previous year average inflation was 2.54 which is favorable and it expect
moderate inflation in future as well
SOCIAL
These factor may include demographic factor in which variable i.e. Population ,
,norm and culture etc. are some of social factor that have to some extent an
impact on the ongoing operation of business and in future as well. Trend toward
using tiles instead of paints is a threat as tiles has greater life time.
TECHNOLOGICAL
Dura Cromix for car paint and Nippon for latest technology i.e. environmental
friendly how because scientifically it is proved that led emit fumes i.e. is injurious
to health.
Task environmentWhile scanning the task environment, Supplier Public, Intermediaries and
Customer Market (SPICC) help in better understanding of task environment.
Supplier
Raw material is supplied from UAE and reaches Lahore from where it is supplied to
other city main warehouses; however every city has it on distributor chain. In
supplying to market the intermediary channel is used while in case of Business to
Business (B2B) selling the paint is directly supplied to the B2B customer.
Public
Intermediaries
Customer
A large number of sales team personnel and a wide network of distributors and
dealers serve customers in all large cities across the country. Berger Paint offers a
wide range of solution through different paint categories in order to meet the
demands of its customers.
Berger have highly qualified and experienced personal that offers professional
services to its industrial customers through Technical Services team.
Competitor
List of competitor is long including local company but because its brand image is
high thus competitor who compete include AkzoNobel Pakistan, ICI, deluxe bright
etc
However In a conversation on 11 December 2015 sales officer M.
Meraaj confirmed that AkzoNobel is leader in market while Berger is second to it.
The reason behind it is that fire evoked in Karachi head quarter that burn billion of
stuff.
Prospectors
Berger paint follow prospector type strategy i.e. fairly comprehensive product
lines that focus on market opportunities and product innovation. They tend to
emphasize efficiency along with creativity .E.g. as an innovative and progressive
paint company, Berger Paints Pakistan offers a wide range of paints for diverse
applications and uses .Berger has eleven product line Decorative Business,
Automotive Business, General Industrial Finisher, Powder Coating, Protective
Coatings etc.
weig
ht
rati
ng
0.45
0.25
2.5
0.2
0.1
1
1.5
Threat
Increasing costs
0.4
fire accident
0.1
3.5
Tax changes
Stiff competition
0.3
0.2
1
3
2.5
Growing economy
Business
diversification
weighted
score
comment
Core Competencies
Consistent quality has always been Bergers trait .This has been the driving force
in making it the leading brand name backed by premium quality across Pakistan.
Berger has the most comprehensive product for numerous paint market divisions.
Berger has gained through its superior technology, product quality and better
customized services.
Distinctive competencies
Quality is the main focus and to make its distinctive competency Berger
established a state of the art manufacturing facility in Lahore. This plant has
provided Berger an edge over its competition through enhanced production. It
has enabled Berger to meet the growing demands of its valued customers across
Pakistan
Business model
Time model
Berger paints R&D and speed is the keys to success in the time model. Being the
first to market with a new innovation allows a Berger to earn high margins. Market
Company continues on innovation with process R&D and lower margins, its help
keep them in market as pioneer.
Value chain
Although in Berger paint every activity is creating value but focus on supporting
activity such as technological and HRM and primary activity such as marketing
and sales has bring great value to product e.g. Berger keep on upgrading and
expand its range by bringing together innovative products in order to meet
consumer needs. Personal visits by the technical sales team to address problems
that the customers may have.
Financial leverage
The table below shows the ratio percentage of how much capital comes in the
form of debt as well as determines the capability of a company to encounter its
financial obligations.
Debt to
equity
long term
debt
share holder
equity
54,670
626,56
5
0.0872
54
8.73
%
Debt to
asset
long term
debt
54,670
3,547,4
83
total asset
0.0154
11
1.54
%
R&Ds
Berger keeps on upgrading and expands its range by bringing together innovative
products in order to meet consumer needs. To ensure high standard of paint by
using resin is produced at own plant of Berger.
By virtue of Research and developments (R&Ds), its better technology, quality and
services has earned Berger the admiration and trust of customer.
Strategic operational
Berger has continuous systems of operational action those laid out as lines on
which products can be unceasingly assembled and processed. Consistent quality
has been the driving force in making it leading brand across Pakistan.
Human resource
At Berger people are considered as most precious. This belief has led to a more
focused approach in developing the Human Resource as our competitive strength.
Corporate Activities such as GREEN DAY (Pakistan day), LONG SERVICE AWARDS,
and HAJJ DRAW etc. are there to bring motivation among employee.
weig
ht
Ratin weighted
g
score
0.4
0.1
0.3
2.5
3
comment
0.2
1
1.5
0.45
0.25
4
3.5
0.2
0.1
1
3
2.5
Reference