Strategic for Production of Natural Sugar Company - Business Plan Example

Strategic plan for production of natural sugar company Vision To be an international all round product sugarcane industry Mission statement To facilitates all round product sugarcane industry which is diversified, efficient and globally competitive. We can only realize this by improving competitiveness in the industry through cost cutting measures, improvement of efficiencies, infrastructure improvement, product diversity and strengthening internal control and regulatory framework. Core values In order for us to achieve the mission and the vision of our company and excellence within the industry, the following core values must me upholds my all our stakeholders. Integrity each and every one must uphold the virtue of integrity through fairness and honesty in all dealings. Excellence in product and service delivery this will meet the customer needs hence satisfactions Accountability each and everyone should strive to be a good steward of the resources of the company entrusted in them with some level of professionalism in them Partnership of stakeholders this will ensure team spirit in service delivery and thorough consultation among the stakeholders Social responsibility the company will struggle to be socially responsible in all the aspect of its dealings and return back to the society Gender equity embracing principle of gender fairness and equity balances in all aspect Challenges within the sugar cane value chain analysis Farm level operation pre-factory operations processing distribution consumption Challenges Limited irrigation schemes which do not allow farmers to harvest sugarcane throughout the season but are forced to stop during dry season, Long maturity period of sugar plantation actually demoralizes farmers to do sugarcane plantation this actually make the farmers to opt for other fast maturing crops with immediate returns. Other challenges include Inadequate funding which result delay payments to farmers and other workers are also not well remunerated hence being demoralized, High cost of sugar production which result to high prices past to consumers hence many have resorted to alternative or substitutes. Narrow product base as the company only concentrate in the production of sugar which is a narrow product range there is need for the company to come up with other alternatives product like molasses product, ethanol and others. The issue of delayed farmer’s payment has greatly affected the initial stage of sugar production has through farmers we get our main raw materials in the sugar production, delay in payment make them to sell the product for other uses apart from the sugar manufacturing company which can promptly pay them Fire out breaks and diseases is a common phenomenon has the fire destroy large track of sugarcane plantation which brings loses to the farmers, diseases also affect the sugarcane produce to a greater extend makes the farmers to sever a total loss, compromising the product quality makes it less competitive in the global market hence makes the market very narrow Adaptation of new technology is very slow is not only expensive but also meet a lot of resistant from the employees hence make it difficult to implement hence slow progress in terms of the new technology development. High taxation makes the product too expensive has that extra cost is being past to the end users of the product in terms of high prices. Strategic goals to be achieved a long value chain of sugar production Farm level Reduce cost of inputs used in farm will help the farmers to cut the cost of growing sugarcane and act as a motivating factor. This is very essential and will be achieved through subsidies and tax exempt on farm product. Improve research and development at farm level, this will enable us to come up with fast maturing sugarcane hence farmers will not wait long for return By Investing money in irrigation schemes which will enable all season growing of sugarcane Pre-factory operation Improve of management of cane yard hence reduction of sugarcane loss through poor handling Ensure reduction of loses of post harvest sugarcane losses through pilferage Information communication technology improvement through new system installation Processing stage Improve efficiency in production process this is very essential as it will ensure steady supply in the market hence meeting consumers demand Reduction in the cost of production as this will ensure lower prices and higher profits for the company Rehabilitate factory set up through facilities modernization of new technology and new production plans and equipment Distribution procession Increase retail centers which will ensure market penetration hence increasing market share of the company product Marketing pattern harmonization throughout the branches both nationally and internationally Good stock level maintenance to ensure smooth flow of goods and services throughout the supply chain Good branding which will help the product to market by itself Strategic objectives for year 2012 to 2014 The pillars of this strategic plan include the following areas of concern To improve industry competitiveness through high quality product, competitive product prices and service delivery within sugar industry To enhance infrastructure system both the communication and transport system within the sugarcane plantation and processing zone which will help in reduction of post harvest loss or spoilage of sugarcane Expand product diversity like other product which can be produced by the by product of sugarcane, they include ethanol molasses and others. Improve the regulatory system framework through strengthening the sugar cane regulatory bodies in place, this will ensure safeguarding of the interest of the stakeholders The SWOT analysis of the company Strength There is large unutilized land for cane growing hence easy expansion of land under sugarcane plantation which will result to continuous flow of raw materials for sugar production Large free unutilized production and processing capacity this can be utilized fully to increase the production capacity of the company Capable agronomic research ability which can be used to develop varieties of fast maturing sugarcane seedlings Capable hard working and resilient farmers who are able and willing to work against all the odds hence the company is in a good position to utilize this opportunity Local markets are secured hence no competition has there are rules and regulation preventing the importation of sugar hence the company will be developing monopoly in the sugar supply Corporative stakeholders both the farmer, government and other shareholders are active and usually participate fully in the company activities and well being. Weaknesses of the company One single product which is not good for the company due to overreliance on it and that means incase of any fall in demand then the company profits will automatically fall. Inadequate irrigation facilities which hinders the growing of sugarcane throughout the year and farmers are forced to stop producing due to dry spell, this slow down the production process due to inadequate raw materials Corporate governance is generally weak cannot develop sound policies which govern the sugar industry at large High post harvest loses due to poor roads and lack of proper coordination within the companies and farmers Underutilized capacity of the production machines due to lack of proper planning Poor infrastructure which hinders the movement of raw materials and finished goods out of the firm hence delay in the delivery to customers Poor ICT system which are not user friendly and cannot integrate all the services of the company Opportunities the company has Agronomics potentiality in research and development which should be fully utilized Availability of local and regional markets which currently has not been fully exploited Availability of product diversification like ethanol production as a by product Production of sugarcane through irrigation schemes which will ensure continuo’s floor of raw materials Threats High cost of energy which increases cost of production hence lowering profits for the company Tax burden is high hence high prices passed to final consumer which makes them to resort to other sugar substitutes HIV/AIDS and malaria which is an international epidemic and affect both the customers, supplies and the employees Insecurity of food which makes the world food organization to advocate for growing of grain food as opposed to sugarcane Presence of high informal trade across the border as they bring export sugar which is a threat to a locally made sugar Poor and uneconomic land sub-division among the farmers to traditional believes PESTLE Analysis Political World majorly focused on governance which should be proper and discipline in services delivery, the observation of human right in there operations and activities Terrorism factors also need to be considers and looked for as they bring insecurity to potential investors, Piracy along Indian Ocean as also be the major stabling block in the trade along the Indian ocean and its environs and affect the COMESA trading, Darfur conflict and political instability in major African states affect the general free business in the region. Economical factors Continuous increase in global oil prices affect the energy cost hence cost of product which needs to be checked on, Increase price in food commodities hence it makes sugar to be a luxuries not a necessity Non tariff barriers also is a major stabling block in the sugar industry, the WTO bilateral trade agreement also opens room for unfair completion in the market Social factors Language barriers in the market hinders the trade within the COMESA trading block, Drug trafficking and abuse leading to reduction in productivity of the sugar , Human trafficking and brain drain within the member state affect the company has the competent employees move to look more greener pasture Technological factors, Expensive technological equipments, Poor negotiation capability and Slow adaptability to advance technology Legal factors High cost of legal matters,, National ratification of regional treaties Weak institutional rules and regulation capability in sugar industry Environmental factors Desertification and deforestation Global warming Evaluation review There will be evaluation of the policies in the strategic plan in order to ensure smooth flow and coordination of the parties involved in the implementation process There will be; Quarterly review meetings This will be held quarterly to ensure that all the stakeholders are moving in the same direction in achieving the company vision and mission statement Quarterly service delivery survey This will be done to know to what extend the service being delivered has reached the intended target or not. Internal annual evaluation This will be done twice throughout the policies implementation process by the end of 2012 1nd 2013, the plans and policies will be reviewed annually Mid -term evaluation survey Will be majorly done to determine the level or the extend through which the policies meets the planned objectives Final review Will give the last feedback of entire strategic plan and the outcome of the implementation and the necessary recommendations References Strategic planning by Matt H. Evans, CPA, CMA, CFM www.exinfm.com/training Strategic Planning of BMW’s Global Production Network, Bernhard Fleischmann Department of Production and Logistics, University of Augsburg, Universitätsstraße 16, D-86135 Augsburg, Germany, bernhard.fleischmann@wiwi.uni-augsburg.de Sonja Ferber, Peter Henrich BMW AG, D-80788 München, Germany {sonja.ferber@bmw.de, peter.henrich@bmw.de} Read More