MGT 402 SEU An Agile Distribution Network for Products & Strategies Analysis

Description


‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية‬
‫اإللكترونية‬
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic
University
College of Administrative and Financial Sciences
Assignment-2
MGT402 – Entrepreneurship and Small Business
Deadline: 16/04/2022 @ 23:59
Course Name: Entrepreneurship and Small
Student’s Name:
Business
Course Code: – MGT 402
Student’s ID Number:
Semester: II
CRN: 24516
Academic Year: 1443/1444 H
For Instructor’s Use only
Instructor’s Name: Dr. Asif Hasan
Students’ Grade: Marks Obtained/Out of
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the cover page.
• Students must mention question number clearly in their answer.
• Read carefully Grading Rubric below for specific criteria: 0-5 Marks
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students or
other resources without proper referencing will result in ZERO marks. No exceptions.
• All answered must be typed using Times New Roman (size 12, double-spaced) font.
No pictures containing text will be accepted and will be considered plagiarism).
• Submissions without this cover page will NOT be accepted.
Entrepreneurship and Small Business
ASSIGNMENT -2
Submission Date by students: Before the end of Week- 11th
Place of Submission: Students Grade Centre
Weight: 10 Marks
Learning Outcome:
1. Utilize strong analytical skills and tools to formulate an effective Bootstrap Marketing Plan
on which a small business can build a competitive edge in the market place. (Lo 1.8).
2. Deliver and communicate marketing massages in coherent and professional manner. (Lo 4.4).
Assignment Workload:
This assignment is an individual assignment.
CRITICAL WRITING
The founder of Almarai is HH Prince Sultan Bin Mohammed Bin Saudi Al Kabeer who recognized
the potential to transform the traditional dairy farming in Saudi Arabia in order to meet the needs of a
growing domestic market. Numerous agricultural projects were developed under his guidance to
achieve the objective of the company. Almarai stepped into the market with the processing of fresh
milk and laban into the modern dairy farms.
The Company has invested heavily in technologically advanced production facilities and recruiting the
right person for the right job. Almarai is considered to be the second and the larger Central Processing
Plant with a new cheese plant along with it. On a daily basis, Almarai is capable of serving high quality
and hygienic products to more than 43,500 customers within the GCC countries. In 2007, Almarai
entered the bakery products market by acquiring Jeddah-based Western Bakeries. Two years later,
Almarai started the construction of a new bakery facility in Al Kharj. In the same year, Almarai
established a joint venture with Chipita and Olayan Finance Company under the name of the Modern
Company Industries to launch 7DAYS brand.
In 2009, Almarai added poultry products to its portfolio through the acquisition of Hail Agricultural
Development Company (HADCO). After investing in an excellent production facility, Almarai
launched the new premium poultry brand – Alyoum. During the same year, Almarai made acquisition
with Mead Johnson Nutrition to form a 50-50 joint venture known as the International Pediatric
Nutrition Company (IPNC).
In 2010, Almarai entered the infant nutrition market with the construction of the region’s first infant
nutrition plant at Al-Kharj. Recognizing that the best way forward involves working with
acknowledged experts in this field, Almarai formed the International Pediatric Nutrition Company
(IPNC), Almarai has recently acquired the entire project and now offers its products under the brands
Nura.
The success of Almarai is because of its unique infrastructure, which includes farms, dairy, juice and
bakery processing plants and also determined by the marketing and distribution expertise, all of which
are working towards delivering a quality product to the consumer.
Product / Services Details
1. Juices: Almarai always uses the best fruit to make the juices that the customers love. It
maintains good balance between good health and great taste. Mixed Fruit, Strawberry,
Alphonso Mango, Orange with Pulp, Orange, Orange and Carrot, Apple, Mango, Mango
Mixed Fruit, Fruit Cocktail, Mixed Berry, lemon with Mint, Guava with Pulp.
2. Home Snacks: Snacks products are the tastier and the simple one which would give relishing
taste. Tinned Cheese, Butter, Ghee, Mozzarella Cheese, Feta Cheese, Whipping Cream,
Tomato Paste.
3. Yoghurts and Desserts: Pure and calcium-rich favourites for the entire family. Desserts are
made from 100% natural, fresh cow’s milk. Yoghurt, Fresh Cream, Labneh, Layered fruit
Yoghurt, Stirred Fruit Yoghurt, Sterilized Cream, Desserts.
4. Culinary Products: Almarai provides the tastiest cheeses, and richest creams which makes
mother’s work easy in the kitchen. Cream Jar Mix, Cheddar Jar Cheese, Sliced Cheese, Square
Cheese Portions, Block Cheddar, Halloumi Cheese.
5. Dairy Liquids: There is a complete range of delicious laban and milk based dairy products for
the entire family. Fresh laban, Fresh Milk, Flavoured Fresh Milk, UHT Milk, Evaporated Milk,
Advanced Nutrition.
6. Kids Products: Kids products prove to be a fun and a healthy bunch for kids. Triangled
Cheese, UHT Flavored Milk, Zady Drinking Yoghurt, Zady Flavored Yoghurt, Zady Jelly
Custard, Zady Fruit Dairy Snack.
Almarai ensures that all its products are properly packed and refrigerated in proper temperatures so
that the products maintain its fresh nature and quality. Liquid products are transported in those
transports which has refrigerator facility so that it does not get spoiled by over time. Almarai mainly
emphasis on quality. Packaging is done in a very clear and uncluttered way so that it is easily
recognizable. The company distributes its products annually which covers more than 110 million
kilometres in delivering dairy, juice, bakery and poultry products reaching up to 43,500 customers
across six GCC states.
Almarai has long-haul fleet which transports raw milk from dairy farms to the Central Processing
Plants and then it transports the finished goods from the production site to different designated sales
locations. Almarai reaches to more than 42,000 shops within the GCC countries on daily basis. It
ensures that the products are properly packed with appropriate temperatures for different products. The
transports are specially designed so that the products are not spoiled and last for longer time.
Almarai transports the finished to small grocery stores and supermarkets. Almarai enjoys increasing
incomes and demands that come from supermarkets where one shop for one’s weekly requirement in
a single visit.
Critical Questions.
1.
2.
3.
4.
Conduct a SWOT analysis for Almarai based on the information given. (2.5 Marks)
Examine the 4 P’s of Almarai based on the information given. (2.5 Marks)
Critically analyze the competitive structure of the organization. (2.5 Marks)
Critically evaluate the product portfolio of Almarai along its USP (Unique selling
prepositions). (2.5 Marks)
The Answer must follow the outline points below:

Each answer should be within 300 to 500 range of word counts.

Reference
Note: You can support your answer by the course book.
You can use secondary source available on internet.
The SWOT Matrix is as follows:
Internal
External
Positive Nature
Negative Nature
Strengths:
1. Leader in Dairy market in GCC
Weakness:
1. High Production cost
2. High quality
2. Over dependency in a particular type of ingredient.
3. Climate is suitable
3. Importing dependency of raw material
4. Distribution Network
4. Production only in GCC
Opportunities:
1. Growth in milk market
Threats:
1. Political problems
2. Diversification
2. Increased cost of feedstock supply
3. Increasing tourist visit
3. Competition
Strength:
1. One of the leading companies in Diary market in GCC.
2. High quality and very well made products.
3. Hot climate suitable for beverages market.
4. Strong distribution network.
Weakness:
1. High production cost.
2. Over dependance on diary and juices segment.
3. Major importing dependency for raw materials.
4. Production facilities only in GCC.
Opportunities:
1. Milk Market Growth in GCC.
2. Production diversification.
3. Increasing tourists visiting KSA for Hajj Umrah will increase the demand.
Threats:
1. Political problems in Gulf region.
2. Increasing the cost of feedstock supplying.
3. Competition between other brands like Nada and Nadec.
Here are discussing about almarai Company. SWOT analysis , 4ps , porters five forces model etc are
described in detail below. And also evaluate the product portfolio of almarai company.
SWOT analysis:
The strength of almarai company is the quality of the product provide to customers. The company have a
unique infrastructure and delivered quality product .The customers needs high quality. And company
gives such good quality enough for customers. The weakness of almarai company is the transportation
and keeping the diary products fresh and hygiene. This keeping products for long lasting is difficult and
transportation on daily basis from production site to different location sites , is the weakness for the
company. The threats of the company is to keep the products for long lasting and not spoiling the
products and keep fresh. It needs refrigerating facility. The opportunity of the company is to enjoy the
income and demand come from supermarket where one shop for ones weekly requirement in a single
visit.
4p’s :
The four p’s of company are product, place, price, promotion. Product includes the products produced by
the company. It includes juice, diary product, snacks, yoghurt etc. Differianted products, positioning of
product are the highlights .
Place means the location of the products supplied. The production site and different location site are
included. Products delivered at the different areas that who need the products for their selling.
Price means the amount of money charged for a product or service. The sum of the value that customer
exchange for the benefits of using the product. Price of almarai products are normally low and some
products are only less than five riyal.
Promotion means the marketing communication activity that attempts to inform and remain individuals
and persuaded them to accept, resell, or use the products. It consist of advertising, direct marketing tools
etc used by the company.
Porter’s five forces model used for analyse the competitive structure of organisation:
*Threats of barriers to entry , which the potential competitors have threats to enter into market because
of the successful going of alamarai company. Potential competitors needs to satisfy the quality and
hygiene comparing to the almarai company provide. And the competitor needs to lower the price for
reaching the customer.
* bargaining power of suppliers, which includes the potential suppliers to decrease the price for
bargaining and cross the limit of alamarai company.
*bargaining power if buyers, which includes bargains to low the price as they needed . Bargaining power
of buyers are more and to satisfy the quality and level of expectation.
*threat of substitute products ,Substitute products of potential competitors satisfy the level of products of
Amarai company
*rivalry among existing firms,competitive struggle face by competitor for market share of the firms. And
have a threat to profitability.
Evaluate the product portfolio of alamarai :
Market share and market growth of almarai company are equal and demand for the product is high. The
alamrai company entered the bakery products market by acquiring Jeddah based western countries.
Then alamrai established a joint venture with chipitha and olayan company. Then, in 2009 ,asked poultry
products to its portfolio through acquisition of hail. Almarai launched new premium poultry brand. In
2010, almari entered the infant nutrition market with construction if regions first infant nutrition plant at Al
kharj. Almarai formed international nutrition company. Almarai has recently acquired the entire project
and now offered it’s product in brand of nura.

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