Swot Analysis of Descon Chemicals Pvt Ltd- Pakistan

This report is prepared under the Contemporary Management Practices course by EMBA Spring 2010 session students, as a final project for the mentioned course. This report will show you the brief introduction about the Descon Chemical business area And will show you the detailed “SWOT” analysis of different departments, and its Extrapolation to the whole organization done by the students of this group.

Management of Descon & our course supervisor can have a quick analysis & conclusion of this study.They will be really able to define the Descon chemicals pvt ltd in terms of their strengths & weaknesses, opportunity and expected threats hence it will remarkably help to for strategic management decisions. ACKNOWLEDMENT This report can’t be completed without mentioning these persons. First of all, credit goes to IB;M UET, where we got chance to continue our business education, and research activities, with respect to our organisations in order to place another brick towards the continual improvement of the industries and ultimately our state.It would also a step forward to bridge the gap between the university and industry.

We are also especially thankful to the Production manager of Descon chemicals Pvt ltd, who did great cooperation in this regard to prepare the report, and given us enough information, so that we can prepare real factual report. Our last ; special thanks to our course instructor (Mr. Haider Zaidi), whose cooperation and encouragement remains wonderful throughout the subject, Introduction to SWOT Analysis:It has always been important for a business to know and understand how it fits in and interacts with the surrounding environment on both an internal (office/factory/shop environment) and external view (how your business operates with the outside world). Researching your environment will benefit you and/or your management team by putting you in a position to develop a strategy for both the long and short term. Analyzing the Business The most influential way of doing this is to perform a SWOT analysis of the company.

It is a common phrase used to abbreviate Strengths, Weaknesses, Opportunities and Threats.Each term is a heading for a separate analysis of the business but they can be related as seen below: Strengths provide an insight to your business opportunities ; weaknesses in your business can cause immediate threats A guideline of how to carry out the analysis is explained in the next section, but it is important to know that the SWOT analysis is only based upon information that is known by the assessors (you), and is seen as perhaps the more basic approach of analyzing a business’ position: but SWOT is still a powerful tool when looking for immediate benefits.Performing SWOT Recognizing the Strengths and Weaknesses before tackling the Opportunities and Threats is the best way to approach the analysis: the more Strengths and Opportunities the better they can both be seen as the bigger influences for the success of your company. You need to be aware that the most important rule is not to leave anything out no matter how small the issue may be. There is no fixed way of doing a SWOT analysis, but it should be done in a way that you feel most comfortable with, and more importantly that you understand it.The objective is to be in a position where you can determine a strategy for the future to improve your company’s overall performance (or maintain it if you are happy with your final analysis).

Strengths: What advantages does your company have? What do you do better than anyone else? What unique or lowest-cost resources do you have access to? What do people in your market see as your strengths? What factors mean that you “get the sale”? Consider this from an internal perspective, and from the point of view of your customers and people in your market. Be realistic: It’s far too easy to fall prey to “not invented here syndrome”. If you are having any difficulty with this, try writing down a list of your characteristics. Some of these will hopefully be strengths! ) In looking at your strengths, think about them in relation to your competitors – for example, if all your competitors provide high quality products, then a high quality production process is not strength in the market, it is a necessity. Weaknesses: What could you improve? What should you avoid? What are people in your market likely to see as weaknesses? What factors lose you sales? Again, consider this from an internal and external basis: Do other people seem to perceive weaknesses that you do not see?Are your competitors doing any better than you? It is best to be realistic now, and face any unpleasant truths as soon as possible.

Oppertunities: Where are the good opportunities facing you? What are the interesting trends you are aware of? Useful opportunities can come from such things as: Changes in technology and markets on both a broad and narrow scale. Changes in government policy related to your field. Changes in social patterns, population profiles, lifestyle changes. Local events. A useful approach for looking at opportunities is to look at your strengths and ask yourself whether these open up any opportunities.

Alternatively, look at your weaknesses and ask yourself whether you could create opportunities by eliminating them. Threats: What obstacles do you face? What is your competition doing that you should be worried about? Are the required specifications for your job, products or services changing? Is changing technology threatening your position? Do you have bad debt or cash-flow problems? Could any of your weaknesses seriously threaten your business? Carrying out this analysis will often be illuminating – both in terms of pointing out what needs to be done, and in putting problems into perspective.Strengths and weaknesses are often internal to your organization. Opportunities and threats often relate to external factors. For this reason the SWOT Analysis is sometimes called Internal-External Analysis and the SWOT Matrix is sometimes called an IE Matrix Analysis Tool. Introduction to DESCON Group : Over the last three decades Descon has evolved into a multi-faceted Engineering and Manufacturing concern and has further spawned a group of ventures with a diverse activities portfolio: Project Management, EPC, Engineering, Manufacturing, Construction, Maintenance, Software Development, Mining, Chemicals and Trading.

While the group companies operate independently under a corporate structure, Descon Engineering remains the flagship company and provides the associated identity to its affiliates. The company is unique in its resource base with in-house capabilities for Design Engineering, Manufacturing, Construction and Maintenance Services. These are applicable to a wide variety of projects related to Industrial plants, Energy and Infrastructure development for which services are provided selectively or on turnkey / EPC basis.Project management expertise vested through sophisticated IT based systems is one of the key elements in achieving successful culmination of projects. The company’s operations span Pakistan, The UAE, Saudi Arabia, Qatar, Oman, Egypt and Afghanistan.

Joint venture partners and technology alliances include JGC Corporation – Japan, Teleflex Presson – Canada, and Eckrohr Kessel – Germany. The roster of clients and end-users is replete with auspicious names such as Sabic, Aramco, Adnoc, Borouge, Gasco, Qatar Petroleum and WAPDA, NHA, OGDCL at home. All establishments are system oriented with ISO and OHSAS certifications and ASME stamps.HSE achievements are reflected in the statistics with over 350 million man-hours of work executed. Considerable investment is made in human resources focusing on development of this vital asset.

Descon is project-oriented and client-driven. Quality and HSE are taken as “value-adders” and the company culture encourages teamwork and innovation. With all these attributes and resources, the company is well placed to compete and succeed in the local as well as international contracting arena while being recognized as a quality service provider and manufacturer of capital equipment.The synergy between various business areas fuels strategic growth by providing cost effective solutions. Introduction to DESCON Chemicals (pvt) ltd.

Founded in 1980, Descon Chemicals (Pvt) Ltd has established itself as one of the leading Chemical manufacturers in the country. Descon Chemicals offers its clients and partners a diverse portfolio of products, unsurpassed quality and technical service, strong commitment and innovation driven by latest trends in the market.All these ingredients result in Descon Chemicals helping its clients to add value to their products and production process, which are driven by introducing new ideas and solutions. During 1980, a production facility engaged in the manufacturing of Sulphuric Acid, was acquired by DESCON, which after restructuring and reorganizing was renamed as “Sulfa Chemicals”. With the birth of “Sulfa”, Descon entered into the chemical sector in Pakistan.

In 1982, “Delta Industries (Pvt) Ltd. ” which was adjacent to “Sulfa Chemicals” was acquired by Descon’s Chemical Business and later on Sulfa Chemicals was merged into Delta Industries.After the merger, Delta Industries initiated an aggressive development and growth plan. Delta made significant investments in R;D and infrastructure and with continuous hard work ; introduction of innovative products, the organization evolved into a major player in the chemical sector. Delta increased its product range manifold and became a major producer of POLYMER products covering Water Based Coating Resins, Alkyd Resins, Amino Resins, Hard and Special Resins, Unsaturated Polyester Resins and Special Coating Additives.Delta’s Product Line also included Textile Chemicals and Paper Chemicals.

During 2004, with an objective to align the name of the Company with its actual line of business, Delta Industries Pvt. Ltd. was renamed as Dawchem Industries (Pvt) Ltd. During 2006, as a result of Corporate Strategy and futuristic thinking of Descon management, Dawchem Industries Pvt. Ltd. was finally renamed as DESCON CHEMICALS (PVT) LTD.

The backbone of Descon Chemical’s success has been the research and development department which is strongly supported by active marketing services.Our research and development department has been continuously involved in products and market related development in close cooperation with our valued customers. We have young and enthusiastic R ; D team with great zeal and potential. They have strong technical skills and use latest methods of new technologies to meet the needs of customers. Due to strong technical know-how and latest R ; D facilities we can tailor-made products according to customer special requirements. We are constantly working to improve our development capability by developing new technology in house or by acquiring new technology from abroad.

Our goal is to become the de facto top in the chemical market. Our experience in polymer chemistry and our willingness to incorporate valuable inputs from stakeholders sets us apart from our competitors. Our listing of Products shows the depth of our chemistry knowledge. Look at our chemistry, inquire about our product and capabilities and let our chemical experience be your Solution. SWOT Analysis Of MIS Department of DESCON Chemicals (Pvt) Limited.

Strengths: Innovative and efficient Enterprise solution provider in the Global IT market, Head office in Colorado, USA.Good reputation around the successful software design, development, and delivery of Quality enterprise applications. 200+ employees Customer focused staff Industry certified professionals Ability to adapt with new technology Effective project management Outstanding executive leadership Proven past performance Experienced, dedicated workforce Outstanding company portfolio Value Added Software development with Innovation. Have switched their overall Business from Fox pro software to Modernized Electronic business suite of ERP. Weakeness: Out sourcing of Business Leeds HR policies are not in good practice.

Poor incentives High Employee turnover rate Most of the employees are work overloaded. Oppertunities: Expanding Digital marketing services. Technology development in focused areas Business Growth in Global Market E-marketing to get online business globally Threats: Competitors Ever changing internal process changes, with Respect to the product formulations and internal processes. SWOT Analysis of Maintenance Engineering Dept of Descon Chemicals Pvt Ltd. Large manufacturing plant area having a big scope of research and development Big workshop facility at works having big staff of all depts. i.

e. electrical, mechanical, instrumentation and civil. Near to the market, all kind of mechanical as well as general store items are available in the vicinity. Technical support is available to mechanical department from Production and process. Weaknesses: Monopoly of lower level worker and supervisory staff.

Only one mechanical engineer is available to deal with all depts. , i. e. electrical, mechanical, civil and instrumentation. Least expertise available for instrumentation dept, so that all instrumentation work is being outsourced.

Least interest of engineer at floor level.Non- compliance of preventive maintenance schedules. Non availability and non compliance of Purchase procedures for maintenance dept. Oppertunities: Large and diversified plant operational area. Large and enriched facility for repair and maintenance.

Great room is available as per the organization’s vision for atomization of the processes. Opportunity available for research and development. Availability of large manpower. Technical guidance from process engineers for continuous improvement. Technically sound ERP system available for tasks management. Threats;The empowerment of union labor more than the management of the department.

Highest turnover of the engineers in the department. Unavailability of instrument engineer in case of respective shutdowns. SWOT Analysis of Production Dept of Descon Chemicals Pvt Ltd. Strengths: Highly motivated and experienced Management staff including Top rated double degree Process Engineers. Self motivated and experienced non-management staff. Technically advanced and growing production facility.

Most of the controls of Production Facility are automated. Low Turnover of the non-management staff both Skilled and non-skilled.Rewards, appreciation for the staff contributing extraordinarily in continuous improvement of the system (The KAIZEN award). Annual incentives / profitability sharing among the employees. Production management is executed with the concept of MBO having smart objectives. Product chemistry guidance is available by the experienced and top rated chemists.

Highly advanced and equipped Lab is available for in process quality control. Weakeness: Highest turnover of the Process / chemical engineers. Least incentives and less room for individuals continuous improvement is available with in the department.Least technical support available from Maintenance dept, especially at B and C shifts, and for instrumentation trouble shooting. The conflicts of labor union. Highest turnover of the contractual non management staff.

More process variations and troubleshooting issues due to Batch process. Un-consistency of the specifications of the raw materials. Legal-Political and economics uncertainty of the country, which effects the sourcing and supply of the raw materials which affects the process and ultimately the product quality. Non Continuity of the implementation of the corrective actions suggested against any non-compliance.Repetition of the root causes for any reported non-compliance in the dept. Response time of the Non-compliance from production dept to their customers both internal and external.

In consistency for the quality of packaging material of the final product. Non physical availability of chemists in shifts for troubleshooting consultation. Oppertunities: Great available room for continuous improvement both for Process parameters and Product quality. A great marketing orders for new products manufacturing, which is challenge as well as an opportunity. Energy savings and cost reduction by process optimization.Increasing productivity of the department by reducing the process times and more effective shift and manpower management.

Reducing lead time. Optimizing the formulation load of the products, for maximum productivity and maximum cost saving. To further BMR the process techniques, relying more on automation than manual dependence. Threats: The energy crisis of the country. The appraisal of oil prices in international market. The closure of small industries in Pakistan due to energy backlash, and hence suppliers of raw materials for the product are changed continuously and hence the process parameters and ultimately the product quality.

The Overall SWOT Analysis Of Descon Chemicals Pvt Ltd. Strengths: The plant operational facility is near to Lahore. Self motivated experienced staff. Bigger industrial brand name. Have sister concerns companies, proven in engineering excellence. The largest Branded manufacturers of Paint, textile and paper chemicals.

ISO 9001:2000 Certified organization. An open Culture organization believes in open and candid environment, and welcomes feedback from all stakeholders for continual imp-movement. Organization has vision for continuous improvement. Hitech electronic communicational setup, with in and outside the organization.Research oriented. Believes in business ethics.

Also focused on customized manufacturing business. A strong IT support team in accordance with the ERP systems. Ability to deliver a large range of Products with different specifications. Weakenesses: Large employee turnover. Less focused on engineering and more focused towards Technical (chemist’s dept).

Least incentives Available for first line and 2nd line managers, most of the incentives are focused on top level management. Fails to retain the experienced and result oriented employees. Long traveling distance between facility and Head office.Imbalanced and non-complying HR policies and their non effective implementation. Least reliance on systems and more on individuals.

Least focused on employees Extrinsive motivational factors. Fails to place rite person at rite job. Non-compliance of implementation of corrective actions suggested with respect to a specific non-conformance. Repetition of root causes. Non conductive attitude of Labor union.

Hiring of less educated human resource at supervisory level. Most of the plant operations are manual than to be automated. Oppertunities: A wide export market.To expand the product range by more focusing on research and development. To deliver products with precised quality by automating all the key process parameters. To trade off the excess imported raw materials.

To provide consultancy to the other national and international chemicals manufacturers, by retaining the self motivated and result oriented seasoned professionals. Threats: The first biggest threat to DESCON Chemicals Pvt ltd is the energy shortage in the country and increase in the energy prices as well, as the increase in energy prices results in increase in unit kg price of the product and hence loses the export market.The highest professional employee turnover is the second biggest threat to the organization, as the company fails to retain its seasoned and valuable employees, even after spending big revenue on HR functions. The unavailability of expertise professional technical staff in Engineering Maintenance department. The appraisal of Mineral oil prices in the country, is also one of the threats, because most of the products of the organization have mineral oils as solvents, hence the product prices can’t compete in the international market.