SITRA CHEMICAL INDUSTRIES LIMITED
SCIL, a public limited company incorporated in 1981. SITARA Chemical Industry Co., Ltd. - the market leader in industrial chemicals, has installed the latest technology to produce high quality products. In order to run and manage these complex plants, they employ a large number of professionals in various fields, namely engineering, marketing, finance / accounting, integrated management and the competent authorities. All of these professionals and recruiting a large number of employees SCIL has its own HR department, perform the following duties. They have effective recruitment process. Through job analysis, they check vacant posts of various departments. Advertising, short-listing application, examination, and interview is the basic point of choice. After the election of staff training is a basic requirement. In this regard, human resource management has established GHR Training Center. For professionals, they arrange external training courses known as the body. Pay is a way to motivate staff. SCIL offers considerable number of additional wages and benefits package to all employees, like beating, welfare activation, security, and free medical facilities, both BA and other household free accommodation
In addition the company offers a competitive remuneration package, in order to ensure a good career progression for employees. They predict in need of employment, and also the use of human resources planning internal and external resources. SCIL has a strong communication system using Intranet and Extranet technologies. Sometimes there is a strong union influence company policy. Different employment terms and conditions on a daily basis and regularly carry out the contract. All of these features SCIL's human resources department to perform very carefully and patiently.

TABLE OF CONTENTS
PART ONE Environmental Analysis
Executive Summary……………………………………………………………………………………………3 2. Part one; environmental analysis 4 2 a; Country and industry analysis 4 2a1; industry’s analysis 4 2 a2; Pakistani’s economic system 8 Organizational analysis 9 2b1;sitara Chemical industry limited 9 2b2; Sitara’s current objective and strategic approach 10 2b3; SWOT table 11 Part two; Scenarios 3a; Suggestions for corporate objectives for Sitara Chemicals Limited for the next 5 to 10 years 13 3b1.strategies to achieve this objective at high risk 14 Scenario 3b2 strategies to achieve this objective with low risk strategy 14 Conclusion 16 Reference list in Harvard system……………………………………………………………………………….17

2 Part one; Environmental analysis
Owing to the ever changing business environment and increasing market competition, it is important for any organization to carry out an environmental, strategic and organizational analysis. This can be attributed to the fact that, if a company is able to understand its environment and itself, then it will be able to respond and meet the requirements and needs in the environment. In addition to that, understanding these factors helps it to capitalize on its opportunities early and it is able to respond to signs of any impending threats and synthesize the company to the ever changing environment. Consequently, carrying out an economic an analysis helps an organization to improve its image as well as act as an effective strategic tool when making corporate decisions. Nevertheless, it is the aim of this report to carry out an economic analysis on sitara chemicals Industries LTD. Additionally, it will also address environmental analysis, industry and company analysis and organizational analysis affecting the company, (Negbennebor, 2001)
2 a; Country and industry analysis
2a1; industry’s analysis
Sitara’s industry can be described as being that of oligopoly. This means that the market form operating in the industry is dominated by a small number of sellers. This means that decisions made by one organization directly or indirectly will likely to influence the decisions of others. This can be attributed to the fact that under an imperfect competition in the oligopoly market, the stiff competition usually creates a sticky upward demand curve which means that for

a firm to survive it has to use a non-price based competition so as to increase its market share and revenue. Pakistani’s chemical industry is one of the oldest industries in the country as it produced chemical products for its domestic needs. However in the 1990’s the industry was liberated and exposed to the international market and competition which saw governmental roles in the industry in terms of intellectual property rights, regulations, import substitution policies and even high tariffs. In addition to that this saw the shift of the industry from producing just basic chemical to producing chemicals like agrochemicals, paints, dyestuffs and petrochemicals. Despite the fact that other industries have developed to a great extent, the chemical industry has remained stagnant .In the 1950s, the Pakistan Industrial Development Council was formed by the Pakistani government, (Caves, 2007)

Internal business environment
The internal business environment also known as the microenvironment consists of forces which are usually close to the organization and affects its ability to serve its competitors, consumers, market, marketing channel firms, suppliers, its consumers and the general public.
Owners and Employees; Sitara’s goals, mission and vision, which is to enable continuous diversification and growth so as to achieve results that are contained well. They are all meant to favor the company owners who are the main stakeholders. It has employed numerous professionals and offers its employees conducive working conditions and environment which

allows them to build their career and also develop their technical, professional and managerial skills.
Competitors; The sitara chemicals industries LTD runs in an oligopoly market... Nevertheless, the main competitors in the market include Nimra chemicals, and Ittihad Chemicals
Consumers; as one of the leading companies in the market, the company hosts many consumers and is thus trusted for the provision of quality and effective products. It has a wide range of consumers from different parts of the world, some of them includes; Twiga Chemical industries in Kenya, Industrial Chemical suppliers Gujranwala, Protea Chemicals in Inland and , Jayes Trading Company in Srilanka., (Stilwell,2006).
External business environment
The external business environment, the macro environment consists of the general forces and trends that are affecting the organization’s relationship with its suppliers and intermediaries, and its consumers in regards to the changes in the environment.
Political and legal factors; The political and legal factors which affect Sitara Company mainly comes from Governmental and law agencies, and pressure groups. Nevertheless, the recent political changes being witnessed in the country have a positive economic effect in the country and company at large in its financial years.
Economic factors; the economic factors in this case are those which are likely to affect Sitara’s consumers buying patterns. This means that their spending patterns and consumer

Purchasing patterns will change drastically. Nevertheless, since Sitara’s products are effective and are well bought by many consumers the company has expanded to operate in both local and international context.
Socio cultural factors; the social and cultural factors which are likely to influence an organization include the society’s institutions, their values and beliefs which in the end affect their behavior, preference, perceptions and values on a specific product or service. Sitara usually makes products which have been manufactured in accordance to the consumer’s beliefs and values. In addition to that, the company usually makes their products to fit its consumer’s beliefs and wants.
Technological factors; Owing to the ever changing technology, many companies have seen it fit to purchase new machines that are technologically advanced so as to stay relevant in the market. This has seen Sitara Chemicals in a race to purchase the latest machines in their company that are enhanced with the latest technology. Doing this is important so as to stay relevant in the market and also to stay on top of its competitors.
Demographic factors; The main demographic factors which affect Sitara Chemicals industry is the general population as it generally constitutes a large part of its market. A country which has large populations means many consumers for Sitara which operates internationally, but it could also mean another thing. This is because the human population characteristics usually shape and affect the market. Demographic factors that also affect Sitara Chemicals include,

Dispersion and geographical characteristics, religious affiliations, education, sex marital status, immigration, births and deaths, and age distribution.
Environmental factors; Due to the increasing environmental pollution and increasing concerns on natural environment, Sitara Chemicals is greatly affected by this; this can be attributed to the fact that the company manufactures chemicals which to the mind of many is harmful to the environment. It is therefore, important for the company to do as much as possible to reduce environmental pollution. In addition to that, apart from the general public being interested in the environment, there are specific legislations which have been imposed on the country by the government on reducing pollution, (Hansen, 2003)
2 a2; Pakistani’s economic system
Most of the products in the industry comprise of Pak Dyes, Penicillin (Antibiotics), Maple Leaf Cement and Pak American Fertilizers and any other products related to chemicals And brings approximately US 0.17 billion while import of chemicals increase both volume and value up to $ 3.9 billion in 2013 and bringing in a deficit of $ 2.83 billion. Nevertheless, owing to the industry’s ever increasing demand, this has caused it to attract a Foreign Direct Investment of $ 253 million a period of five years. At the moment, there are more than 20 developed and 400 chemical industries in the region, while most of them have specialized in the manufacture of key chemicals which causes a steady development and progress in the industry. Pakistani’s current economy is a mixed economy. This is a type of economy where both the state and the private sectors have a say in the economy and thus both of them are able to control it. This means that the economy reflects both characteristics of the planned and market economies. In this some

cases, it can be described as being a market economy which is being strongly overseeing and the government provides public goods, (Whittington, 2000). Additionally, the ever changing and increasing Pakistani economy has impacted on the industry by reinforcing the industry’s local sector and urging them to engage in imports and export substitution which encourages product diversification and acquisition of latest technology. This means that it is a fiscal economy where governmental expenditure and revenue influence the economy.
Organizational analysis
2b1; Sitara Chemical industry limited
Sitara was established in the year 1981, but started the production of Caustic Soda in the year 1985, at a rate of producing only 30 metrics per day. However with time, the company has been able increase and produce up to even 545 metric tons in one day. The company is the largest producer of Chlor Alkali products in the whole country and its total revenue is more than RS 600 billion. Nevertheless, The Company produces basic chemicals like Caustic Soda Flakes, Bleaching Powder, Ammonium Chloride, and Caustic Soda Liquid, specialty chemicals like, Anhydrous (Flakes), Calcium Chloride, Ammonium Bicarbonate, and .Aluminum Sulphate, It
Also produces gases like Carbon Dioxide, and Oxygen Gas, and Nitrous Oxide. The company operates in local markets but also exports its products to external markets like Kenya, Srilanka, UAE and even USA. The company’s main consumer is the industrial chemicals who offer the company a large consumer base. In addition to that, the company is strategically located such

that its main consumers who belong to the vegetable oil, paper, soap and textile are found in the neighboring areas.

2b2; Sitara’s current objective and strategic approach Due to the increasing competition and globalization,, the company has come up with a viable strategic decision so as to have a competitive advantage over its competitors. The company’s main strategy for international consumers is consumer satisfaction through quality goods and services together with adopted consumer feedback and timely international shipment this is in line with its objectives which are to attain increased sales revenue at the end of each financial year. The company’s export department consists of well trained staff that ensures effective delivery as the company’s 62 percent of products are normally exported, and makes use of both direct and indirect marketing strategies. The company’s current marketing strategy;
Price; the Company uses a number of ways to establish its price point. Different prices for different regions, locally and internationally. It uses the customer based price; competitors based price as well as the competitive based price as it operates in an oligopoly market.
Place; first of all, the company has strategically placed itself which enables most of its consumer to access its products. In addition to that, the company also exports its products and services to the Product; The company deals with numerous products, like basic chemicals like The Company produces basic chemicals like Caustic Soda Flakes, Bleaching Powder, Ammonium Chloride, and Caustic Soda Liquid, specialty chemicals like, Anhydrous (Flakes), Calcium

Chloride, Ammonium Bicarbonate, and .Aluminum Sulphate, It also produces gases like Carbon Dioxide, and Oxygen Gas, and Nitrous Oxide. It is also the largest producer of Chlor Alkali products in the whole country.
Promotion; the company uses a number of ways to promote its products; it makes use of print advertising like newspapers and brochures. Apart from that it also makes use of emails, faxes, telephones, word of mouth personal visit to consumers and chemical exhibitions.

2b3; SWOT table

Strengths * The company has a large customer base. * Sitara has a huge capital which enables it to run its business smoothly. As of 2013, the company had a total value of more than 186million Rupees. * The company uses the latest technology which enables it to stay relevant in the market. Its most important plants make use of the electrolyze which is environmental friendly and energy conserving. * The company has a large skilled labor workforce which enables it to produce effective e products. * The company witnesses an increasing market growth of more than 15 percent and a 75 percent market share.

Weaknesses * The company uses high costs in producing its products. * So as to expand it will require large business investments. * There are many disputes between the company’s Lower level Management and Middle level. * A high percentage of raw materials is wasted during production. * The company does not have a stable workforce as they often leave the organization after working for one year only. Opportunities * The emergence and usage of Gas and PVC plant which will enable production of effective products. * The energy resources are free or they have a low cost.
Calcium chloride is readily available which increases its market share and opportunities. Threats * There is an increasing rate of competitors in the industry plus the current ones. * Generally, people view chemicals as environmental unfriendly which means that some view it negatively.

Part two; scenarios
3a; Suggestions for corporate objectives for Sitara Chemicals Limited for the next 5 to 10 years

For Sitara to maintain its competitive advantage, its main objective should be to be the leading company in both domestic and export supply of chemical products in the next 5 to 10 years. It can also aim to attain an increased 20 % in revenue in the next 5 to 10 years. However, attaining this can be attained in two ways, it can be attained using the high risk or the low risk method.
3b1.Strategies to achieve this objective at high risk

One way that the company can increase its competitive advantage in terms of the marketing mix of place is to open up additional companies in the region or in developing countries which will be able to provide the company with cheap raw materials and labor. This will increase the organization’s general output; however it will still cost the company a lot.
Nevertheless, there are also governmental factors which will be increased ,Price is increased taxes and interest rates on exported goods, place is restrictions on where to put up structures and products are in terms of legal restrictions on chemical products. This will increase the country’s economy at the expense of the products and increased employee salary, which will

rise but in the end it will be effective for the company as I will attract Foreign Direct Investment and quality of goods.
Product and price; will be to produce high end product which will be sold at a higher price but have its own set of consumers. For instance, classify products in grades according to consumer category and preference; higher category can be sold at the highest price, product quality price tactic will be used in this case, and revenue will increase
Promotion; Optimized internet marketing and social media marketing this will include the use of key words, programmer and through pay ad clicks, this methods are expensive but are effective as they lead to the company’s Profitability, liquidity and working capital
Scenario 3b2 strategies to achieve this objective with low risk strategy

Place; Environmental business analysis involves identifying all the factors affecting the business which are in the environment, assessing their impacts and developing a strategy on how to take control of them. There are both internal and external factors which are affecting Sitara Chemicals in this case. The PESTEL tool will be used in analyzing the external factors affecting the company, (Samuelson, & Marks, 2003)
It is important for the company to come up with innovative products which will help in attaining its objectives. One way the organization can do so is by going green on its products. This means

trying to come up with environmental friendly products or labeling their product green which means that they are in support of green environment. In terms of price, the companies should go after other ways apart from the normal ones customer based price; competitors based price as well as the competitive based price as it operates in an oligopoly market, it can use the discounting method which will enable it to trust more consumers.
Promotion; Apart from using the old –fashioned way of promotion, sitara should consider making use of social media marketing. This is because not only has it proven to be effective but can be categorized according to demographics and reach a large consumer base since the company can also export its products.
The government on the other hand should also address issues which will enable the company and economy as large to grow. All the above recommendations not only will them enable effective strategic management of the company but will also help he financial efficiency strategy of the company as it will have covered its Profitability, liquidity and working capital, (Brouthers, 2002).The first step will be towards an increased economic growth this is important as it means increased National income and GDP which will mean increased activities And favorable economic conditions for the company to work in.

Conclusion

It is therefore important to conclude that despite the fact that Sitara is one of the leading companies in the chemical industry in Pakistan, there is need for it to come up with effective and innovative strategies which will enable it to do well and gain competitive advantage in the market. One way of doing so is carrying out an environmental and organizational analysis which will not only enable it to understand factors which are affecting it but it will also help in capitalizing on its opportunities early and it is able to respond to signs of any impending threats and synthesize the company to the ever changing environment.

References

Brouthers, K. D. 2002, Institutional, cultural and transaction cost influences on entry mode
Choice and performance, Journal of International Business Studies, vol. 33, no. 2, pp. 203-221
Caves, R. E. 2007, Multinational Enterprise and Economic Analysis, New York: Cambridge
University Press
Greiner L., Bhambri A. & Cummings T. (2003), searching for a strategy to teach strategy,
Academy of Management Learning and Education, vol. 2, no. 4 (2003), pp. 401–420.
Hansen, B 2003: The Economic Theory of Fiscal Policy, Volume 3. Routledge.
Laudicina, P. A. 2005, World Out of Balance: Navigating Global Risks to Seize Competitive
Advantage, McGraw-Hill
Negbennebor, a 2001 Microeconomics, the Freedom to Choose CAT. Page 291.
Porter, M.E. 2008. The Five Competitive Forces That Shape Strategy, Harvard business
Review, January 2008.
Samuelson, W. & Marks, S. 2003.Managerial Economics. 4th ed. page 415 Wiley 2003
Stilwell, F. 2006 Political Economy: The Contest of Economic Ideas, 2nd ed., Oxford University
Press. 2006. Stilwell
Whittington, R 2000, what is strategy – and does it matter? 2nd edition, International Thompson,

Appendix one; Probability risk matrix table
The above matrix shows the degree of risk of investing in an effective marketing strategy so as to increase consumer satisfaction and add competitive advantage to the company

| Impact | Probability | Negligible (1) | Minor (3) | Moderate (5) | Serious (8 ) | Critical (10) | Very likely to occur (5 ) | 5 | 14 | 26 | | | Probability will occur (4) | 4 | 11 | 21 | 30 | | About 50% chance of occurring (3) | 3 | 8 | 16 | 22 | 30 | Unlikely(2) | 2 | 5 | 11 | 13 | 20 | Very unlikely to occur (1) | 1 | 2 | 6 | 6 | 10 |

Risk with an exposure value of less than 20 is considered as low risk,
Risk with an exposure value of between 20 and 39 is considered as moderate risk,
Risk with an exposure value of between 40 and 50 is considered as high risks