STRATEGIC MANAGEMENT FINAL PROJECT

GROUP MEMBERS & ID

Hamza Shahid Khan 20191-25430

Kamil Abdullah 20191-25680
Muhammad Muzammil Amin 20212-29176
Muhammad Abdul Wasay 20212-29417
Syed Ahmed Ali 20212-29474

SUBMITTED TO
Sir Naveed Muhammad Khan
ORIENT ENERGY SYSTEMS LIMITED
• OES is one of the leading engineering companies of Pakistan
which was incorporated in 1996 by a group of engineers with
an aim to provide seamless support to their customers in the
area of power generation.
PRODUCTS/SERVICES
• Some of the world-renowned brands of industrial products
like

• GE Jenbacher, Cummins, Siemens Gamesa, Ingersoll Rand,

Shanghai Electric, Bosch, Grundfos, Aquamach, SANY etc.
have chosen OES as their local distributors/partners/agents in
Pakistan.

• Being the distributors of GE Jenbacher in UAE, Oman, Bahrain

and Qatar, OES has managed to make a strong foothold in the
Middle East (UAE, Oman, Bahrain and Qatar).
PRODUCTS/SERVICES
• Manufacturing of Diesel Genset and Diesel
Engine.
• Manufacturing of Gas Generators.
• Renewable Energy - Wind and Solar Power
Generations Projects.
• Coal Power Projects.
• Fire and Security.
• Product Support Parts.
• Project Management.
PROFILE OF INTERVIEWEE
• Name: Tauseef Dawood
• Designation: Senior Executive
• Department: Energy Services
• Organization: Orient Energy Systems (Pvt.) Ltd
• LinkedIn:
https://www.linkedin.com/in/tauseef-dawood-19a3b7195/?
originalSubdomain=pk
ANALYSIS OF VISION STATEMENT
“Our vision is to enable industrial growth through provision of the foremost
reliable, technologically advanced, and efficient and environment friendly
engineering products and services to our customers at an unmatched value”

CLEAR, VIVID & LASTING

• The vision of company is Vivid, clear and long term.

• It’s not confusing as they have mentioned the area, technology as well as the
product.
• It is also somewhat inspiring as they want to be environment friendly by
introducing products which does not cause much damage to the environment of
the Country. Similarly, they want to provide unmatched values to the customers
which shows positive mind set of the company and long term thinking.
 ANALYSIS OF MISION STATEMENT
“To become the market leader and the most dependable power and industrial
engineering solution provider in the regions we serve. To supply globally
recognized and high performing equipment that is backed by paramount
engineering and product support.”
Components Points Reasons
Customers NO  
Power and Industrial engineering solutions, Product
Products/Services YES
support.
Markets YES Globally recognized

Concern for
Market Leader, Dependable Power solutions, globally
survival, growth YES
recognized, high performing equipment’s.
and Profitability
 ANALYSIS OF MISION STATEMENT
Components Points Reasons

Philosophy YES To supply globally…..product support.

 
Technology YES High Performing Equipment's 
 
Concern for Public NO  
Image
 
Concern for NO  
Employees
 
Self Concept YES industrial engineering solution provider 
 
PROPOSED MISION STATEMENT
• To deeply recognize the needs of our Clients who are
constantly searching for the latest technologies and new ways
of thinking to make the best project decisions.
• We continuously develop our knowledge and expertise and
apply them in helping our Clients in their business activities.
we also develop new, efficient software tools that enable our
Clients to strengthen their business opportunities. And, above
all, we work together with our Clients and transfer our
knowledge and experience through our efficient team.
 EXTERNAL FACTOR EVALUATION MATRIX
Rating Weighted
Opportunities Weight
(1-4) Average
1. Expansion to overseas market 0.12 4 0.48
2. Changes in social patterns, population profiles, lifestyle changes 0.08 3 0.24
3. Arrival of new technologies 0.10 3 0.30
4. New group of customers in emerging markets 0.05 3 0.15
5. Exponential growth of renewable energy 0.10 3 0.30
6. Exploring lubricant oil industry 0.06 3 0.18
7. Diversifying into product support parts 0.07 3 0.21
Rating Weighted
Threats Weight
(1-4) Average
1. Dependency on imported raw material 0.09 3 0.27
2. Import duty is continuously increasing 0.05 1 0.05
3. Economic Recession due to COVID-19 outbreak 0.05 3 0.15
4. New regulations and other small consultancies looking to invade the 0.08 2 0.16
marketplace
5. Future competition with the other well established industries 0.06 2 0.12
6. Price wars with competitors 0.03 2 0.06
7. Buying power of customers due to uncertain economic condition of Pakistan 0.02 2 0.04

8. Increase Trade barriers 0.02 1 0.02

9.Fluctuations in foreign exchange currency 0.02 1 0.02

Total: 1.00   2.75

 INTERNAL FACTOR EVALUATION MATRIX
Weighted
Strength Weight Rating (3-4)
Average
1. Brand Image & Brand Value 0.10 4 0.40
2. Highly Skilled Engineers 0.09 4 0.36
3. Strong Distribution network in Middle East 0.08 3 0.24
4. Diversified Product Line 0.08 3 0.24
5. Better Profitability Margins 0.07 3 0.21
6. Product Innovation 0.05 3 0.15
7. Research & Development 0.05 4 0.20
8. Good Financial Standing 0.05 3 0.15
9. Strong Supplier Network 0.04 3 0.12
10. Renewable Project have low running cost 0.07 4 0.28
Weighted
Weakness Weight Rating (1-2)
Average
1. Lack of export driven strategies 0.07 2 0.14
2. Warehouse shortages 0.04 2 0.08
3. Little presence on Social Media 0.03 2 0.06
4. No backup spare parts provider Locally 0.05 1 0.05
5. Very little emphasis on expanding internationally 0.08 1 0.08
6. High prices due to inflation might reduce sales revenue 0.03 2 0.06
7. Dedicated Space for renewable Projects 0.02 2 0.04
Total: 1   2.86
 COMPETITIVE PROFILE MATRIX
Critical Success Factors Weight Rating Score Rating Score Rating Score

MASCO ENERGY ORIENT ENERGY JASCO

SYS PVT LTD

Brand reputation 0.13 2 0.26 3 0.39 2 0.26

Range of products 0.13 3 0.39 3 0.39 2 0.10

Successful new introductions 0.04 3 0.12 3 0.12 2 0.26
Market share 0.14 2 0.28 3 0.42 1 0.14
Sales per employee 0.08 2 0.16 3 0.24 2 0.16
Low cost structure 0.05 1 0.05 3 0.15 2 0.10
Variety of distribution channels 0.07 4 0.28 2 0.14 2 0.14
Customer retention 0.02 2 0.04 4 0.08 2 0.04
Superior IT capabilities 0.11 3 0.33 4 0.44 2 0.22
Strong online presence 0.15 3 0.45 2 0.30 2 0.30
Successful promotions 0.08 1 0.08 2 0.16 1 0.08
Total 1.00   2.44   2.83   1.80
 SWOT MATRIX
Strength - S Weaknesses - W
1. Brand Image and Brand Value 1. Lack of Exports driven strategies
2. Better Profitability Margins 2. Warehouse Shortages
3. Renewable projects have low running 3. Little emphasis on expanding
cost. internationally
4. Diversified Product line. 4. No Backup spare parts providers
5. International Quality and Standards in locally
Project Management 5. Little presence on social media
6. Strong foothold in Middle East 6. High Prices due to inflation might
7.Good financial standing reduce sales revenue
8. Strong supplier network 7.Dedicated Space for renewable
9. Product Innovation projects
10. Highly skilled engineers
 SWOT MATRIX
Opportunities - O SO Strategies WO Strategies
1. Expansion to overseas Develop and produce Develop compatible
Markets. Multiproduct Line with model for storage and
many price classes to reduce storage cost.
2. Changes in social patterns, target various sme’s and (W2,O7,O2)
population profiles, lifestyle giants due to products and
changes service range.
(O1,O3,O4,S7,S9,S10)
3. Exponential growth of
Renewable Energy.

4. Diversifying into product Build assembly plant of Chinese market is open

support parts Renewable energy place to market
products and explore Renewable product.
5. Exploring Lubricant Oil overseas markets. (06,03,W1,W3)
Industry (S7,S8,S9,S10,01,03)

6. New group of customers in

emerging markets

7. Arrival of new technologies

 SWOT MATRIX
Threats - T ST Strategies WT Strategies
1.Fluctuation in Foreign
Currency. Reduce Effect of Exchange Explore Market for Export
2. Increase Trade barriers. rate by building a Plant in oriented products.
3. Economic recession like various parts of the world (W3,W1,T2,T4)
Covid-19 (T1,S1,S2,S3)
4. Price War with competitors
5. Buying power of customers
due to uncertain economic
condition of Pakistan
6. Dependency on imported Well-Suited model should be Reduce Threat of
raw material developed to Target Growing competition by developing
business due to prevailing Flexible Product Line.
7. Import duty is continuously circumstances. I.e. Hospitals, (T9,W7,W4)
increasing Financial Institutions,
8. New regulations and other warehouses
small consultancies looking to (T5,T9,S4,S5,S6)
invade the marketplace.
9. Future competition with the
other well established
industries
 EVALUATION OF BUSINESS MODEL
Components Details
High Quality products and Support Services.
Affordable pricing.
After Sales Service.
1. Value Proposition 100% Genuine Parts
Diversified Product line.
Integrated Solutions for lower energy cost.

Commercial Customers
Government power projects.
2. Customers Segments SME’s and Retail.

Local Media.
Company Website.
3. Channels News Letter on Company’s Site
Press Release.
Dedicated personal assistance
Project Discounts.
Timely Availability of spare parts.
Field Services (Schedule & Unscheduled).
Pre Sales & Post Sales services.
4. Customer Relationships Planned Cash Counter to facilitate customers for spot purchases.
 EVALUATION OF BUSINESS MODEL
Project based.
Reduced cost for energy production and increased profits from
selling energy as a result of optimizing the production, shortage
5. Revenue Streams /retrieving and buying/ selling of energy oriented products.
Revenues from long term customers.
Fixed monthly fees from leased customers.
Import Oriented Products.
Innovative technology
Energy Management tools to optimize assembling of products.
6. Key Resources Professional Engineers, Supportive field staff, Customer support
representatives.
Financial Resources
Cummins N.V
Innio Jenbacher.
Valvoline.
Grundfos.
7. Key Partners Hangcha Forklift Truck
Jenbacher
Bosch
Major Contractual agreements with major suppliers
 EVALUATION OF BUSINESS MODEL
Manufacturing and Assembling Cost.
Operating Cost. (Depreciation Cost, Selling, ongoing daily task)
Installation and Maintenance of Solar Panels, Generators, fire
extinguishers etc.
8. Cost Structure Payments to key partners.
Product handling Cost.
Storage Cost.

Manufacturing of Diesel and Gas Generators.

Engineering Support for Gas/Diesel generation, solar projects.
Production of Renewable Energy Projects.
Communication
Installation and Maintenance of Product Line
9. Key Activities Earth moving projects.
Lube Oil.
Fire and Security.
 SPACE MATRIX
Financial Position Stability Position
Increment in Net Sales 6.00 Technological Change. -2.00
Price Range of Competing -3.00
Increment in EPS 5.00 Products.
Return on Assets Competitive Pressure. -3.00
5.00
Revenue/Profit 6.00 Barriers to entry into the Market. -4.00

Avg. Financial Position Avg. Stability Position -3.00

5.50

Competitive Position Industry Position

Product Quality -2.00 Growth Potential 5.00
Customer Loyalty -4.00 Profit Potential 6.00
Technological Expertise -2.00 Financial Stability 5.00
Control over suppliers and -1.00 Ease Of Entry into Market 6.00
Distributors
Avg. Competitive Position -2.25 Avg. Industry Position 5.50
 SPACE MATRIX

Result:
Directional Vector Coordinates:
X-axis (CP + IP) = -2.25 + (+5.50) = 3.25
Y-axis (FP+SP) = 5.50 + (-3.00) = 2.50
 BCG MATRIX
Relative Market Share Position
High Medium Low
1.0 .50 0.0

High
+20

Stars Question Marks

Industry Sales Growth Rate

Cummins Engine Genset – Diesel Nitrogen – Oxygen Generator

Cummins Power Generation (CPG) (INMATIC N2)
Medium Gas Genset – Innio Jenbacher
0

Cash Cows Dogs

Cooling Towers – Mesan.
EPC – Coal Power Solutions.
Low Wind Power – Siemens Gamesa
-20

21
 PORTER’S FIVE FORCES

Competition in the Industry:

• Pakistan is currently on energy pathway towards over-reliance on
imported fossil fuels, outdated coal technology and expensive
seasonal and delayed hydro power.
• Moreover, polluting power plants relying on fossil fuel imports are
being planned in the context of Pakistan’s weakening currency,
growing current account deficit, declining foreign exchange reserves,
escalating circular debt and reducing Pakistan’s energy security.
• Tariffs for wind and solar are less as compared to all other generation
sources as the concept of renewable is growing the requirement of
solar power energy.
• Companies like Masco Energy Services, SIMTEK Power Services, and
Atlas Power Limited are major competitors in the energy and power
sector of Pakistan.
 PORTER’S FIVE FORCES

Potential Entry of New Competitors:

• In recent years, solar and wind power technology have made
staggering progress in improving efficiency and reducing cost and
rapid renewable energy tariff has declined around the globe.
• Market is potentially opened to explore because the concept of
renewable energy is expanding many companies to invest in
power sector as the requirement of energy is rapidly spreading.
• Further, although without solar module or wind turbine
manufacturing facilities, there are many components supply
opportunities across tracking, solar frames, smart meters,
inverters and tower frames including ongoing engineering,
procurement and construction (EPC) requirements to improve
local content, investment and employment opportunities.
 PORTER’S FIVE FORCES

Bargaining Power of Suppliers:

• International suppliers and partners, Orient

Energy Systems have strong network of
suppliers and vendors around the world.

• Some of the suppliers are Cummins, Valvoline

Inc., INNIO Jenbacher, and Grundfos Gulf which
provide best quality raw material and services to
the Orient Energy Systems at economical rates.
 PORTER’S FIVE FORCES

Bargaining Power of Consumers:

• Orient Energy Systems has diversified customer

portfolio from multinational to home based. Product
quality and variety attracts customer and built brand
loyalty. Thereof due to diversity and some unique
products the bargaining power of consumers are low.
 PORTER’S FIVE FORCES

 Potential Development of Substitute

Products:

There is a high risk for of substitute products.

However they are surviving because of product
portfolio and post/after sale services.
 BLUE OCEAN STRATEGY
• Cummins Power Generators, Manufactured and Develop by
Orient Energy Systems considered as most valuable energy
production asset having low consumption of fuel and provide
up to 3500 hp with wide range of products.
• Whatever industry you are in; Mining, Automotive,
Agriculture. It is considered to be the best of all time.
 BLUE OCEAN STRATEGY
ELIMINATE

With elimination, CUMMINS GENERATOR identifies and shortlists the factors through
which a given industry has competed over a long period of time, and which may be
eliminated now. These factors include, obsolete technology, mundane operational
processes, and stringent human resource policies.

RAISE

Under this option, CUMMINS GENERATOR is able to identify the factors that it wants
to rise well above the industry’s average in its own settings and operations. These
factors will give the company an edge over other players and will provide it with a
competitive advantage. It focuses on developing these factors for a sustainable
advantage. These factors includes, its organizational culture, human resource
training and policies, technological innovation, and market research capabilities.
 BLUE OCEAN STRATEGY
CREATE
The company is able to maintain and control costs, and is at the same time, able
to offer higher value to the buyers.
The company is also able to create sustainable advantage and a refined first-
mover advantage through the development of these capacities that will give it a
sustainable advantage.

REDUCE

Under this strategic option and choice, CUMMINS assesses and reviews a given
industry, and identifies factors and aspects that it should reduce in its expansion
plans to be able to maximally benefit from untapped market spaces and related
opportunities. These factors are reduced considerably in comparison to industry
standards.
 ANALYSIS OF FINANCIAL RATIOS

4 YEARS AT A GLANCE
 LIQUIDITY ANALYSIS
• The current ratio of the company has declined in the
years 2019 and 2021 which is a bad sign for the
company.
• Also, the ratio is almost near to 1 which shows
companies financial liquidity is towards a declining
trend.
• It is analyzed that they have to recover amount from
customer against services on credit thus does not
have much liquid assets like cash or market securities
therefore, needs to improve Current ratio which
should be above 1.50 to be able to pay and come out
of the border line.
• Also, Company had planned to expand their business
which has resulted in outflow of cash due to several
partnerships and investments in various projects.
 SOLVENCY ANALYSIS

• The Debt to Equity ratio is also on an

increasing trend which means they are taking
loans to finance for their assets and
operations shows aggressive strategies used
by the organization.
• Increasing debt of the company up to 53% in
current year 2021 which is increasing
solvency risk of the firm.
• Increased in Payments to Creditors.
• Debt to Equity ratio is as per the industry
average the ratios is good as currently is
above 1 and less than 1.50.
 PROFITABILITY ANALYSIS
• The ROA of Orient has declined dramatically
in the year 2020 due to covid19 impact.
However they have bounced back in the year
2021. Also it is a service based As well as slow
moving goods industry therefore assets ratio
is low.
• The Return on Equity of the Organization have
also declined in years 2020 mainly due to
covid 19 impact whereas they have bounced
back in the year 2021 and have met industry
average that should be around 15%-20%.
• The net profit margin of the company is
around 12% which is a positive sign for the
Organization as this shows they are able to
generate revenue by effectively controlling
expense and interest cost.
 ASSET TURNOVER RATIO

• The asset turnover ratio of the company is

towards declining trend since past 3 year.
• It shows company is not efficiently utilizing its
assets to generate revenue.
• Orient should apply more efficient method of
using the number of assets in order to
generate more sales.
RECOMMENDATIONS
• To keep current market conditions and scenario in mind, many
power generation companies considered Electrical battery as a
future. Where Tesla has already introduce the concept of Electrical
Cars, companies like Toyota is also looking up to this domain for the
enhancement of fuel consumption in Cars. Orient has a huge
opportunity to diversify its product line and introduce electrical
batteries for power generation in electrical cars.
RECOMMENDATIONS
• In addition to that, electrical batteries may
also enable to enhance their current portfolio
as if the utilize batteries in their current power
projects it may help them to save
consumption cost which normally occurred
from Diesel oil, Petrol or Gas.
CONCLUSION
• OES has won numerous national and international awards in providing
industrial solutions especially in the area of power generation.
• Pursuant to company’s philosophy, “Power for All” orient empowers people
and their businesses by bringing to them the best global performers to the
field of power generation and industrial solutions.
• Some of the world-renowned brands of industrial products like GE Jenbacher,
Cummins, Siemens Gamesa, Ingersoll Rand, Shanghai Electric, Bosch,
Grundfos, Aquamach, and SANY etc.
• Having strong suppliers network OES has been one of the leading Power
Generation companies in Pakistan.
• Having good quality and reliable products bring this company to the front line
of Power energy business.
• In order to grow Orient Energy should focus upon the expansion in Pakistan
and focus upon new emerging markets of renewable energy.