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thinkiit pre foundation class viii biology
Muhammad Ahmad Iftikhar 14L-5238 (A)
K&N’s
Health and Happiness for Pakistan
Case summary A fully integrated poultry enterprise is established in 1964 names K & N’s (Khalil and Naushaba). Now ran with his son Adil K. Sattar. Projected sales of 2011 in the region of US$250 million. They just overtook all worse economic conditions in the Pakistan and build a very strong enterprise even the international visitors admired their performance. But still they are looking ahead as the sattars recognized a lot to accomplish they started exporting Arab countries. Moreover they analyzed the main demand with economic conditioned customers is in well-established countries like US and UK, where a lot of Muslims are living and are even curious about Halal meat. The company is fully vertically integrated as they have their own feed mill and producing their own bird. Quarter millions of birds are used in company’s own farm and rest is placed with contract growers. Some part of logistics were also being own by the company to be more cost efficient. Case explains how efficiently they have managed to find gaps in the market and gaps that are not yet filled relating to customer needs and health benefits. They offered some international products like nuggets, croquettes and burger patties more over some products that are not usually easy to made in home such as tikka and barbeque seekh kabab. There are some products in view of Muslims are made usually through a Haram process so K&N’s just take this out by revealing a video in their website
in which birds are being slaughtered in truly Islamic way. K&N’s has a very strong and reliable new product development process which includes 4
stages. Those effective four stages increases their chances successful development of a new product. K&N’s did not positioned itself against typical wet-market neither they ever degrade wet-market. Their only focus is to provide “safe and Healthy chicken”. They also support their chicken stores even they were proved costly in the beginning because this ideamarket. gives opportunity to deeply understand the consumer behavior and to penetrate in the They have also introduced “The K&N’s Way Club” to accelerate their penetration and encouraging their existing customers to turn their most loyal customer. K&N’s seems very keen to grow in foreign markets as very interesting stats of growing
demand of Halal food in US, UK and France. For this purpose Pakistani government is also seems supportive to help them grow outside the country.
Cases in Management
Muhammad Ahmad Iftikhar 14L-5238 (A)
K&N’s
Health and Happiness for Pakistan
PEST Analysis:
Political
Politically some subsidiaries are being providing to promote poultry domestically. Keri Lugar bill in which huge amount of funds are committed to promote dairy and poultry so this industry can rise by these opportunities. No incentive is currently providing to meat exporter.
Economical
Heavy taxes no subsidiaries Fluctuating prices volatile demand
Social
Religious issues put doubt on customer minds that birds are properly slaughtered or not. Consumer trend issues 90% of customers like to purchase chicken from wet-meat shops
Technological
Day old birds are now produced Average weight of birds can be increased or decreased Immense demand can be balanced if farms are operating efficiently with new technology.
Cases in Management
Muhammad Ahmad Iftikhar 14L-5238 (A)
K&N’s
Health and Happiness for Pakistan
SWOT ANALYSIS:
TOWS:
First strategy is relating w2 with O1 they need to start a campaign in which they show videos of their whole slaughtering process in a complete religious way. These kind of campaigns can be conducted in hyper star, metro and other places where people used to visit regularly. This strategy will help in awareness, penetration and
Cases in Management
Muhammad Ahmad Iftikhar 14L-5238 (A)
K&N’s
Health and Happiness for Pakistan
customer satisfaction. This will ultimately help K&N’s to cure the damage cause by those people who think these kind of meat are haram. W3–O2 their access to market is limited because of wet meat trend as the educational level is increasing people become more health conscious so that will help K&N’s as they are positioned for safe and healthy chicken.
Company has been successful so far?
Yes! I think company is successful so far after facing worse economic and cultural problems. Reason for this immense success is they have efficiently fill the market gaps, vertical integration gave them a good opportunity to save a lot of money and control quality at the same time. More over the example like how Hyper Star uses K&N’s as their loss leaders, loyalty program, quick serve meat and many other opportunities that has
taken very intelligently so far. Key Challenges:
Imported Chicken Electricity Rapid Price Fluctuations Wet-Market as in Barrier for further development of industry High Inflation Improvement in the general level of Education Less Productive Workforce
Options to these Challenges:
Imported chicken only face 16% import duty while local manufacturers cost 35% of tax including 16% sales tax. So Mr. Khalil want government of Pakistan to give some incentives to exporter and decrease some of the duties. Well in the end of the case minister shows a positive response to Khalil’s request.
Un-planned electricity is a very big problem and only option to over-come this is to have a Backup generator or to produce own electricity well both of these options are very costly and it can disturb the whole cost structure of the company. In wedding season as the demand of chicken increased the price also increase by 100% but on the other hand K&N’s needs to be a price consistent so they have to
forecast demand and prices which makes them bit higher comparing to other value added chicken suppliers. There is no specific options provided in the case for this challenge.
Cases in Management
Muhammad Ahmad Iftikhar 14L-5238 (A)
K&N’s
Health and Happiness for Pakistan
The challenge of high inflation is controllable to some extend but it affect the quality and productivity no solution is being presented in the case for this Adil stated that he is hoping for increase in educational stats in Pakistan he believes that this will help consumer to understand the positioning of K&N’s. I believe it too
because right now most of consumers are just following through Halal Haram thing and curious how the birds are being slaughtered in the plant after some time as K&N’s is making aware about its processing of birds to general public they will gain
trust eventually and this will help in getting good sales and market share as well. Cheaper labor is available in Pakistan but it need to be productive and efficient as well which is very difficult and costly to hire.
I would like to go with less productive workforce because I think this is the most controllable problem K&N’s needs to trained their labor in a way they will prove ver y cost effective for them. A very inspiring example comes in my mind when I talk about productive workforce before manufacturing and during manufacturing, the CEO of Tata motors decides to change the typical mindset of Tata motors because they are going to made a breakthrough car (NANO). They started giving spiritual and technical training to their labor this can help in changing view of typical labor and allows them to think in a productive way more over training will boost their moral and commitment. So h ere in case of K&N’s I would like to give focus on training of their labor this can help them I same way as in example discussed above.
Why not other challenges- if we talk about the wet meat which is their basic challenge I would not suggest to start spreading a bad mouth about them as almost 90% of customers uses wet meat so spreading rumors like poor quality or anything like that can hurt that 90% of market share. So this would not a good idea I appreciate how K&N’s tackle this thing by just saying “safe and Healthy Chicken”. Electricity, price fluctuations and inflation are some-how being ignored for the time
being as they are uncontrollable. Level of Education I think this will improve but it requires time to change view about the value added chicken and wet meat. So this is another thing that can be ignore Imported chicken this challenge is seems to be solved in the given case so that why I did not choose this.
