Group members

Ehsan Qadir BE-10-22

Najam u Saqib BE-10-50
Shoaib Hassan BE-10-06
Hamza Sheikh BE-10-75
Ehsan Qadir

INTRODUCTION
LUCKY CEMENT


Lucky Cement Limited (LCL) is the largest cement
producer in Pakistan. Its shares are traded on
the Karachi Stock Exchange, and are part of the KSE
100 Index. Its symbol in the Karachi Stock Exchange
(KSE) is 'LUCK'. The company's highest share price
was PKR 147.00, on 18 April 2012
MISSION STATEMENT
Our mission is to be a premium cement manufacturer by
building a professional organization, having state-of-
the-art technology, identifying new prospects to reach
globally and maintain service and quality standards to
cater to the international construction needs with an
environment-friendly approach.

VISION STATEMENT
We envision being leader of cement industry in
Pakistan analyzing and capitalizing on new
opportunities in global market, contributing toward
industrial progress and sustainable future, while being
a responsible and corporate citizen.

PRODUCT
We are providing the best quality cement to the market
of Afghanistan for building strong infrastructure.


ABOUT Afghanistan
TARGET COUNTRY: Afghanistan
ADMINISTRATIVE CAPITAL: Kabul
COMMERCIAL CAPITAL: Kabul




Najam u saqib

INTRODUCTION ABOUT
AFGHANISTAN
GEOGRAPHY: Islamic Republic of Afghanistan, is
landlocked country located in Central Asia and South
Asia. It has a population of around 30 million
inhabiting an area of approximately
652,000 km
2
(252,000 sq mi), making it the 42nd most
populous and 41st largest nation in the world. It is
bordered by Pakistan and India in the south and the
east, Iran in the west


Afghanistan cement INDUSTRY
we have targeted the Afghanistan industry due to
following reasons
Low production in domestic industry
Huge demand of cement
New infrastructure building due to war destruction.


CEMENT INDUSTRY IN PAKISTAN
There are some major cement producers operating in
the country:
DG cement
Lucky cement
Maple leaf cement
Askari cement
Attock cement
Fauji cement



MAIN PRODUCER OF AFGHAN
INDUSTRY
1. AFGHAN CEMENT LLC.

2. GHAURI CEMENT.
PEST ANALYSIS OF PAKISTAN
POLITICAL
political condition of Pakistan is getting worse day
after day and minute after minute
political instability is a threat for any business
new investors are now more reluctant to invest in
Pakistan
The rules and regulations are changed quite frequently
due to change in the successive government that
affects the business flow
ECONOMIC
Inflation is at its highest
the interest rates are also highest
overall purchasing power of the consumer is weak.
Unemployment is rising
Distribution of wealth system continues to worsen year
afteryear because the gap between the rich and the
poor continues to widen
Disposable income of the general public has
decreased
government is in debt
Pakistans integration with the global economy has
brought positive changes to its overall economy,
including increase in GDP and decline in import
duties.
Government is providing youth with debt for business
SOCIO-CULTURAL
Islamic society
Following western culture
Education and health system is in progress now-a-
days

TECHNOLOGICAL
Technological expertise is readily available in the
country but the professionals has no opportunities to
progress
Industrialization in the country is fairly stagnant with
international investors quite wary of entering this
risky Pakistani market.
Latest manufacturing technology is significantly
missing from the market.
Shoaib hassan

PEST OF AFGHANISTAN
POLITICAL
Political:
Government type is presidential.
low freedom for media.
Rules and regulation are not enforced by law due to
terrorism. There is very low employment level.
Tax policy and tariff controls are not strongly
regulated. Influence of Talibanization is evident in
the political system.
ECONOMIC
Afghanistan is an impoverished and least developed
country
As of 2012, the nation's GDP stands at about $34.29 billion
with an exchange rate of $19.91 billion, and the GDP per
capita is $1,100.
The country's export was $2.6 billion in 2010.
Its unemployment rate is about 35% and roughly the same
percentage of its citizens live below the poverty line.
About 42% of the population live on less than $1 a day,
according to a 2013 report.
The nation has less than $1.5 billion external debt





SOCIAL AND CULTURAL

The Afghan culture has been around for over two
millennia, tracing record to at least the time of the
Achaemenid Empire in 500 BCE.
It is mostly a nomadic and tribal society, with different
regions of the country having their own tradition,
reflecting the multi-cultural and multi-lingual
character of the nation.
In the southern and eastern region the people live
according to the Pashtun culture by following
Pashtunwali, which is an ancient way of life that is
still preserved

TECHNOLOGY

Technological advancement and adoption is very much
low due to low literacy rate and continuous war.
Technology is necessary for the success for competitive
advantage and is provide power to globalization. This
includes:
R&D Activity
Informational Technology
New machines
LEGAL
The rights of every citizen are protected by legal
provisions in the Federal Constitution
The respect for social harmony is preserved and
protected.
Mixed legal system of Islamic law, and customary law;
judicial review of legislative acts in the Supreme Court
at request of supreme head of the federation
ENVIRONMENT
Bio diverse range of flora and fauna found in
various eco regions throughout the country.

Several environmental organizations have been
established to raise awareness regarding the
environmental issues in Afghanistan.

SWOT OF LUCKY CEMENT


STENGTHS:
1. Strong Financial Position.
2. High Product Quality.
3. High Pay scale.
4. Highest Export Share
WEAKNESSES:

Low Advertising and Less Exposure.
Low Gratuity and PF funds.
Increasing General & Administrative Expenses


OPPORTUNITIES:
Upcoming national building projects.
Demand for cement in Gulf region
Less freight charges for export of cement
Expansion in cement industry due to house building
loans by banks.
Advancements in technology.
Can move in Afghanistan.


THREATS:
Government Regulations on Slots
Price Competition
Alliance Opposition.
Labor Union Problems.


PORTERS FIVE FORCES MODEL
COMPETITIVE RIVALRY WITHIN AN
INDUSTRY

While choosing the market, where the basic entry
point would be major retail giants of in Afghanistan,
the chances to face rivalry decreases to minimum.
This technique would not only provide the business to
develop but also to capture as market as possible


THREATS OF NEW ENTRANTS

Entry barriers in the markets are very much low which
has increased the threat of new entrants in this
market. So this market has a very much greater threat
of new entries
BARGAINING POWER OF SUPPLIER

As Pakistan has one of the largest reservoirs for
cement production which has reduced the threat of
bargaining power of suppliers. And above all the
higher purchasing power of the targeted market has
lowered the threat of this situation.

BARGAINING POWER OF BUYER

The purchasing power per capita in Afghanistan is
relatively lower than any other nations in the world.
Moreover their consciousness towards the health has
reduced their bargaining power which would be the
best resort for this export to prosper


THREAT OF SUBSTITUTE PRODUCT
According to recent surveys the consumption of
cement in Afghanistan and in most of the is increasing
which has reduced the risk for the presence of
substitutes
CONCLUSION
Rivalry is LOW
Threat of new entrants is HIGH
Bargaining power of supplier is low
Bargaining power of buyer is LOW
Threat of substitute is low
BUSINESS ORIENTATION
Polycentric
Local demand of people
Management styles
Language
Suitable strategy to target host country customers


COST LEADERSHIP

Cost leadership is defendable strategy
It defends against powerful byers
It defends against powerful suppliers

Achieve cost leadership through
(i) Cheaper availability of raw materials
(ii) Economies of scale
(iii) Short Run



(iv) Process innovation
(v) Hiring competent staff
(vi) Tight control of overhead


1
Polycentric
approach
Foreign direct
investment
Cost leadership
3
Poly and regio
centric approach
All entry modes
Cost/differentiatio
n
2
Ethnocentric
approach
Exporting
Not consistent
strategy
4
Geo centric
approach
Licensing and
franchising
Focus strategy
Firm specific advantage
C
O
U
N
T
R
Y

S
P
E
C
i
F
I
C

A
D
V
A
N
T
A
G
E

Strong
Weak
Weak
Strong
According to comparative advantage theory the
business will fall in first quadrant, where we can opt
for polycentric approach as per the regions. Along
with an advantage of cost leadership we would be
having the chance to differentiate our product on the
basis of quality awards and certificates. We are going
for FDI and cost leadership.