Sitra Chemical Industries Limited Essay

3551 words - 15 pages

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. ...view middle of the document...

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...

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