CENTURY PAPER & BOARD MILLS LIMITED

MEMBERS NAMEFahad Ismail

Ahsan AliZubair Khan

Abdul WaheedAbdul Qadir

Abdul RehmanShariq SaeedRehmat Ullah

COMPANY PROFILECentury Paper & Board Mills Limited (CPBM), established in 1984, is Flagship Company of the Lakson Group of Companies – Pakistan. The Company started commercial production in 1990 and established its name as major producer of quality Packaging boards in the country. It has attained a position of Market Leader in Packaging Boards in particular and is considered as most Preferred Supplier to Printing and Packaging Industry. The Company serves many of the prestigious clientele and maintaining Strategic Business Relationships with leading Packaging and Converting units as well as end users, which include national and multinational companies. The Company is also in export business and its Packaging Boards are successfully competing in the international market.

VISION MISSION & OBJECTIVES

VISIONTo be the market leader and an enduring force in the paper, board and packaging industry, positively influencing and providing value to our stakeholders, society and our nation.

MISSIONTo strive incessantly for excellence and sustain our position as a preferred supplier of quality paper, board and packaging material within a team environment and with a customer focused strategy.

OBJECTIVESCentury’s quality objectives are designed for enhancing customer satisfaction and operational efficiencies and committed to building Safe, Healthy and Environment friendly atmosphere.

DEVELOPED VISION AND MISSION

VISION  To be a World Class Paper, Board and Packaging

company that creating values to their customers, employees, community and shareholders.

 MISSION  Our Mission is to deliver values to our

Stakeholders, driven by our focused strategies for Growth, Culture, Safety, Sustainability and Operational Excellence.

 

OPPORTUNITIES & THREATSOpportunities Signing a contract with a new

supplier Change when required Increasing Demand of Paper &

Board R&D and other advancements Price Competition Better use of Information

Technology Develop new value added

products Gaining advantage through

strategic fit Customer loyalty Global expansion

Threats

Rising raw material prices Electricity shortage Gas shortages International and National

Competition, including technology

Economic crises Law and order situation Strong competition amongst

rivals High increasing energy cost Increasing recovered paper

costs Increasing exports

COMPETITIVE PROFILE MATRIX

Competitive Profile Matrix (CPM)

  Century Paper & Board Mills Ltd

Packages Ltd Competitor

Critical Success Factors Weight

Rating

Score

Rating

Score

Rating

Score

Market Share 0.13 3 0.39 2 0.26 3 0.39Product Quality 0.10 3 0.30 3 0.30 1 0.10Frequency of updates 0.06 2 0.12 2 0.12 1 0.06Price Competition 0.07 2 0.14 2 0.14 2 0.14Product Brand Reputation 0.05 3 0.15 3 0.15 3 0.15Financial Position 0.11 3 0.33 3 0.33 2 0.22Marketing Capabilities 0.11 4 0.44 2 0.22 2 0.22Customer Loyalty 0.04 4 0.16 2 0.08 2 0.08Technology 0.04 4 0.16 1 0.04 1 0.04Global expansion 0.10 3 0.30 2 0.20 1 0.10Company Brand Reputation 0.07 4 0.28 3 0.21 2 0.14Distribution Channels Management 0.12 3 0.36 3 0.36 1 0.12

Totals 1.00   3.13   2.41   1.76

EXPLANATION The CPM study discloses that Century Paper & Board

Mills is the robust participant in the industry with comparative strengths in market share, distribution channels, Product quality and technological advancement.

Packages do not have any competitive strength and become a weakest in nature.

competitive profile matrix shows that the total weighted average score of Century paper and board mills is higher than other competitors which means that Century papers and board mills enjoys the strongest competitive position

COMPANY’S EXTERNAL FACTOR EVALUATION

  External Factor Evaluation Matrix (EFE)      

  OpportunitiesWeig

htRating

Weighted Score

1. Signing a contract with a new supplier 0.18 4 0.722. Change when required 0.10 3 0.303. Increasing Demand of Paper & Board 0.08 2 0.164. R&D and other advancements 0.07 2 0.145. Price Competition 0.08 3 0.246. Better use of Information Technology 0.14 2 0.287. Develop new value added products 0.11 2 0.228. Gaining advantage through strategic fit 0.06 4 0.249. Customer loyalty 0.08 4 0.3210. Global expansion 0.10 2 0.20

  ThreatsWeig

htRating

Weighted Score

1. Rising raw material prices 0.20 3 0.602. Electricity shortage 0.10 4 0.403. Gas shortages 0.15 4 0.604. International and National Competition,

including technology 0.15 2 0.305. Economic crises 0.05 2 0.106. Law and order situation 0.05 3 0.157. Strong competition amongst rivals 0.05 2 0.108. High increasing energy cost 0.10 3 0.309. Increasing recovered paper costs 0.05 2 0.1010. Increasing exports 0.10 1 0.10  TOTALS 1.00   2.86

INTERPRETATIONScore is the result of multiplication by weight

and rating. Each factor should receive a score. Total weighted score is the result of sum off all individual scores.

The total score of 5.57 is an average which shows companies strategies are well to meet opportunities and to defend against threats

STRENGTH & WEAKNESSES Strength  Availability of Raw Materials

due to agricultural country Excellent employee

management Synergy within the group Huge Capital Spending in R&D Extensive Distribution

Channels Continuous improvement

mindsets Quality of Products &

Customer services

Friendly environment Availability of recovered paper Weaknesses  High increasing energy cost Production cost Inflation Competition based on prices Regulatory impact High labor cost Increase Wood cost Employee Turnover Operating Expenses

COMPANY’S INTERNAL FACTOR EVALUATION

  Internal Factor Evaluation Matrix (IFE)       

StrengthsWeigh

tRatin

gWeighted

Score1. Availability of Raw Materials due to agricultural country 0.05 3 0.152. Excellent employee management 0.25 4 1.003. Synergy within the group 0.10 3 0.304. Huge Capital 0.15 4 0.605. Spending in R&D 0.10 4 0.406. Extensive Distribution Channels 0.05 3 0.157. Continous improvement mindsets 0.10 4 0.408. Quality of Products & Customer services 0.10 4 0.409. Friendly environment 0.05 3 0.1510.

Availability of recovered paper 0.05 3 0.15

 

WeaknessesWeigh

tRatin

gWeighted

Score1. High increasing energy cost 0.18 1 0.182. Production cost 0.14 2 0.283. Inflation 0.10 2 0.204. Competition based on prices 0.05 1 0.055. Regulatory impact 0.05 2 0.106. High labor cost 0.10 1 0.107. Increase wood cost 0.11 1 0.118. Employee Turnover 0.16 2 0.329. Operating Expenses 0.07 1 0.0710.

50% Old design outlet 0.04 1 0.04

  TOTALS 2.00   5.15

INTERPRETATIONScore is the result of multiplication by weight

and rating. Each factor should receive a score. Total weighted score is the result of sum off all individual scores.

The total score of 2.89 is an average. In an internal evaluation that score indicates that company has good command over there weaknesses.

SWOT ANALYSISSO Strategies1 (Huge Capital , Develop new value added products)

2(Excellent employee management , Gaining advantage through strategic fit)

3 (Quality of Products & Customer services , Customer loyalty)

4(Extensive Distribution Channels , Better use of Information Technology)

ST Strategies

1(Excellent employee management , Strong competition amongst rivals)

2 (Availability of Raw Materials , Rising raw material prices)3 (Availability of recovered paper , Law and order situation)4 (Continuous improvement mindsets , Electricity shortage)

WO Strategies1 (Competition based on prices , Price Competition)2 (Inflation , Global expansion)3 (Production cost , Increasing Demand of Paper & Board)4 (Increase wood cost , Signing a contract with a new supplier)

WT Strategies1 (Inflation , Economic crises )2 (High increasing energy cost , Electricity shortage)3 (Regulatory impact , Law and order situation)4 (Competition based on prices , Rising raw material prices)

EXPLANATION SO Strategy this situation applies to the company for which dominates

strengths in the environment and opportunities within. This situation corresponds to the maxi-maxi strategy: strong expansion and diversified development.

  WO Strategy In this situation company has the more vulnerability -

weaknesses, but its environment gives more opportunities. The strategy should include the use of these opportunities while reducing or correcting weaknesses within the organization.

ST Strategy The source of development difficulties for the company is unfavorable external conditions (prevalence of threats). The company may use large internal strengths in attempt to overcome threats from environment.

WT Strategy the Company in this case is devoid of any development opportunities. It operates in hostile environments, and its potential for change is small. It does not have significant strengths, which could withstand threats. Mini-mini strategy boils down to a pessimistic version of the liquidation or in optimistic situation - to strive for survival, or merger with another organization.

SPACE MATRIX

Internal Analysis:         External Analysis:          Financial Position (FP)       Stability Position (SP)        Return on Investment (ROI) 7 Rate of Inflation   -4Leverage 4 Technological Changes   -2Liquidity 3 Price Elasticity of Demand   -3Working Capital 5 Competitive Pressure   -2Cash Flow 5 Barriers to Entry into Market   -5                             Financial Position (FP) Average 4.8 Stability Position (SP) Average   -3.2

Internal Analysis:         External Analysis:          Competitive Position (CP)     Industry Position (IP)        Market Share -1 Growth Potential   4Product Quality -2 Financial Stability   5Customer Loyalty -3 Ease of Entry into Market   5Technological know-how -5 Resource Utilization   6Control over Suppliers and Distributors -3 Profit Potential   4                   Competitive Position (CP) Average -2.8 Industry Position (IP) Average     4.8

EXPLANATIONThis particular SPACE matrix identifies us

that our company should follow a competitive strategy. Our business has a strong competitive position it the market with speedy growth. It requires utilizing its internal strengths to build up a market penetration and market development strategy. This can comprise product development, integration with other business, acquirement of competitors, and so on.

BCG MATRIXRelative Market Share Position

High Medium Low 0.01.0 .50

High+20 Star Question Mark

Century Papers & Board Mills Ltd       

              

Medium 0 Cash Cow Dog

                     

          

Low -20    

EXPLANATION

Cash Cow-CPBMThe BCG Matrix shows that Organization has good command over the market that it has 38% market shares in respect of all industry. BCG Matrix shows the multi-dimensional factors but as per CPBM is concerned organization don’t disclose the profit of each sector they only describe the whole sale of their product rather than describe individual sale or profits, so in respect of the above these Matrix this matrix only describe the Strength or Market share of the Organization which tells that CPBM is the market leader in all level right now.

IE MATRIXThe Total IFE Weighted Scores

Strong Average Weak4.0 to 3.0 2.99 to 2.0 1.99 to 1.0

4.0 I II III                    

High                                         

3.0 IV V VI

        

The    EFE    

Total Medium    Weighted    

Scors          

 Century Paper & Board Mills Ltd

   2.0 VII VIII IX

                    

Low                                    

1.0      

INTERPRETATION & EXPLANATION We calculated IFE matrix for an anonymous

company on the IFE matrix page. The total weighted score calculated on this page is 2.89 which points at a company with an above-average internal strength.

We also calculated the EFE matrix for the same company on the EFE matrix page. The total weighted score calculated for the EFE matrix is 5.57 which suggests more than average ability to respond to external factors.

A CELL V suggests the hold and maintains strategy. In this case, our tactical strategies should focus on market penetration and product development.

GRAND MATRIX          Rapid Market Growth                                            

    Quadrant II         Quadrant I                                                                          0                               

      0        

 Century Paper & Board Mills

                                                                                          

                           

Weak Competitive

Position

                    Strong Competitive

Position

                                                         

                                                                                   0                                        0                                                                                         

    Quadrant III        Quadrant

IV                                   Slow Market Growth                       

EXPLANATIONCentury Paper & Board Mills Limited Lies in Quadrant 1 which gives the Company focus to adopt Market Development Strategy and Doing Market Penetration and enter into the new Market with the New Product and doing the Line or Brand Extension. Also attains development by accepting product growth, market growth and market saturation approaches. Also CPBM Diversified into related product that makes more market shares in a respect and has command over the market.

QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM)

     

Demand Supply          

  OpportunitiesWeigh

t AS TAS AS TAS1. Signing a contract with a new supplier 0.08 2 0.16 3 0.242. Change when required 0.06 2 0.12 3 0.183. Increasing Demand of Paper & Board 0.08 3 0.24 4 0.324. R&D and other advancements 0.06 3 0.18 2 0.125. Price Competition 0.07 4 0.28 3 0.216. Better use of Information Technology 0.05 3 0.15 4 0.207. Develop new value added products 0.04 2 0.08 2 0.088. Gaining advantage through strategic fit 0.02 2 0.04 1 0.029. Customer loyalty 0.03 4 0.12 3 0.0910.

Global expansion 0.03 4 0.12 4 0.12

  ThreatsWeigh

t AS TAS AS TAS1. Rising raw material prices 0.04 4 0.16 3 0.122. Electricity shortage 0.03 2 0.06 2 0.063. Gas shortages 0.04 1 0.04 2 0.084. International and National Competition, including

technology 0.03 3 0.09 4 0.12

5. Economic crises 0.04 3 0.12 2 0.086. Law and order situation 0.04 4 0.16 3 0.127. Strong competition amongst rivals 0.05 3 0.15 2 0.108. High increasing energy cost 0.07 2 0.14 1 0.079. Increasing recovered paper costs 0.08 2 0.16 1 0.0810.

Increasing exports 0.06 2 0.12 2 0.12

EXPLANATIONStrategies applied:-

◦ Related Diversification.◦ Product Development.

Both Strategies have good results as per QSPM but CPBM must have to do Diversified into related product or in their relative Business which give more profitable to the Company.

CPBM Diversified into Packages, Printing and Lamination as there has Synergy so Organization should take profitable by making the initiative through these factors and must adopt the Strategy of related Diversification.

Company have good Strength on Given total of Product Diversification that is 2.69 and Product development has 2.53. This is given by the Sum Total Attractiveness Score figure. The related diversification strategy give ways higher score than the Product Development Strategy.

FINANCIAL RATIOS

2012 2013 2014 2015 2016 20170.00.20.40.60.81.0

Quick Ratio

0 0

2012 2013 2014 2015 2016 20170.00.20.40.60.81.01.21.41.61.8

Current Ratio

0 0

CONTINUED..

2012 2013 2014 2015 2016 20170.0

0.1

0.2

0.3

Inventory Turnover Ratio

0 0

2012 2013 2014 2015 2016 20170.0

0.1

0.1

Total Assets Turnover Ratio

0 0

CONTINUED…

2012 2013 2014 2015 2016 20170.0

0.2

0.4

0.6

Accounts Receivable Turnover Ratio

0 0

2012 2013 2014 2015 2016 20170.0

1000.0

2000.0

3000.0

Average Collection Period Ratio

0 0

CONTINUED….

2012 2013 2014 2015 2016 2017

-100.0-80.0-60.0-40.0-20.0

0.0

Gross Profit Margin Ratio

0 0

2012 2013 2014 2015 2016 20170.01.02.03.04.05.0

Net Profit Margin Ratio

0 0

CONTINUED….

2012 2013 2014 2015 2016 20170.0

0.1

0.1

ROA

0 0

2012 2013 2014 2015 2016 20170.0

0.1

0.2

ROE

0 0

ANNUAL OBJECTIVES AND POLICIES

QUALITY POLICIES: Century excels in manufacturing of quality Paper,

Paperboard and Corrugated Boxes for packaging. Century a customer focused company, is always

ready to accept challenges for achieving its mission. Century’s quality objectives are designed for

enhancing customer satisfaction and operational efficiencies.

Century is committed to building Safe, Healthy and Environment friendly atmosphere.

SAFETY POLICIES:

Century Paper & Board Mills is committed to: Improve Occupational Health and Safety (OH & S). Implement necessary controls and measures for

mitigation of accidents and associated risks by setting objectives and following applicable legal and other requirements.

Promote OH & S practices through training of employees for healthy and safe work environment.

CONCLUSION & RECOMMENDATIONCentury Paper & Board Mills is presently a strong universal leader in the Paper industry. . Century Paper and Board Mills Limited should focus on to the expansion of their growth and gain benefit of possible opportunities by ongoing to recover on extents at the business level. They should recover their employee relationships in order to generate employees all over the world. Packages Limited has executed an Environmental safety program, which delivers an appreciated necessity and at similar period presenting their brand name. If Century Paper and Board Mills Limited followed this similar philosophy with Paper goods and environmental safety then it too would suggestively raise their brand appreciation.