Berger - Live Case Study For Managerial Policy (With Various Matrices)

1. ACKNOWLEDGEMENTS:

Working on this report has been a rich and rewarding experience, thanks to the camaraderie, generous guidance and encouragement of our teacher Syed Mateen Ahmed.

Our sincere gratitude to the Naseer Ahmed, Controller Purchase вЂ" Berger, we interviewed for this term report, for his generous time and insights, especially for granting us the permission to collect first hand information about the company itself and allows us to carry on with our research on their business strategies. And how the business world truly runs and promotes its products.

In the end we would like to thank God in helping us accomplish this task, and our teacher who gave us the opportunity to experience the dynamic world in person.

2. EXECUTIVE SUMMARY

This report examines the competitive position of Berger Paint Pakistan. Various industry sectors in which Berger in active are described to give a feel of the business. The starting point of this report was the analysis of the mission and vision statements. The vision statement had room for improvement and we have suggested a more strategic vision statement.

Financial analysis of the past 3 years was done to uncover the profitability and health of the business. Highlight of the financial information have been presented in our report. The number crunching was done by taking into account industry averages and expert opinion. This helps understand how secure the business is.

Different matrices we constructed to understand how Berger Paints challenges its competitors. These matrices focus on internal strengths and weaknesses as well as external opportunities and threats. The rating for each matrix is based both on industry standards and company performance on each measure. These matrices aid comprehension and are very useful in presenting company strategic success.

This report then goes on to highlight a real issues that is currently being faced by the Berger management. The problem is identified and a solution has been proposed.

3. INTRODUCTION OF THE COMPANY

The history of BERGER is as old as the history of organized paint manufacturing. The first company to introduce premium quality paints in the country. BERGER started its operations in 1950. Initially the paints were imported from the United Kingdom. It was in 1955 that a local manufacturing facility was established at Karachi. Ever since, the Company has met the growing demand through regular extensions in its products range, which has continued to attract a healthy market share and has maintained a high reputation for consistent quality.

BERGER PAINTS PAKISTAN became a public limited company in 1974, when 49.38% of the shares were acquired by Pakistani investors with the remaining 50.2% being held by the U.K. parent company, Jenson & Nicholson Limited. Soon afterwards, Jenson & Nicholson Limited were taken over by Hoechst, one of the world's major manufacturers of chemicals and allied products.

Berger alternatively is a brand which apart from being extremely popular amongst the household segments enjoys unquestionable loyalty of the institutionalized segments. Its wide product range and its growth with respect to the innovation it keeps bringing to the market marks its stature as the most solid and vicious threat to ICI. Some of the characteristics that make Berger equally popular amongst many is its distribution coverage with a network of 13000 dealers that is very close to that of ICI and its wide product range.

3.1. Strategic Intent

Berger Paints team intends to become the market leader in the Paints Business. We wish to be recognized for offering the best products and excellent customer service. We will stay in the forefront of innovation and tech development, run a high quality, profitable and growth oriented business in an exciting and safe environment.

3.2. Our Vision

"Pakistan’s dominant manufacturer and marketer of paints, coatings and allied products and services."

3.2.1. ANALYSIS OF VISION STATEMENT

I believe the mission and the vision statements of Berger are completely out of sync. Whilst the vision statement is clear about the business Berger is in the mission statement only contains the paints and leaves out the coating and allied products and services.

The vision statement is supposed to give the employees something to look forward to attain. The word dominant is very vague. Does this mean that Berger wants to be number one in the industry or does it want to be one of the majority market share holder. The vision statement of the company should be crystal clear of what the company wants to attain in the long term rather than having vague terms which hold no value for the employees.

Whilst the vision statement breaks down Berger into 2 departmental wise functions, namely manufacturing and marketing, the mission statement does not have anything related to these functions mentioned.

The mission statement should have the what, who and how for these departments as they are the backbone of Berger.

3.2.2. NEW PROPOSED VISION STATEMENT

“To be Pakistan’s number 1 manufacturer of paints, coatings and allied products and services by attaining the highest levels of quality and customer satisfaction”

3.3. MISSION STATEMENT

The company's employees are constantly encouraged to pursue the fulfillment of the Corporate Mission Statement.

We will stay in the forefront of innovation and technological development in the paintindustry.

We will achieve corporate success through an unwavering commitment to provide our customers high quality products to their