Strategic Management Report on Al-Ghanim Industries, Kuwait, 2018

This report provides a comprehensive strategic management analysis of Al-Ghanim Industries, a Kuwait-based multinational conglomerate. It includes an assessment of the company's vision, mission, objectives, and strategies, followed by external and internal analyses using tools like PESTLE, SWOT, CPM, EFE, and IFE matrices. The report identifies the company's strengths, weaknesses, opportunities, and threats, and uses the BCG and Grand Strategy matrices to formulate strategic recommendations. Specific recommendations are provided for the management, marketing, and R&D departments, along with procedures for strategy review and evaluation, aimed at enhancing the company's competitive position and facilitating business expansion.

Strategic Management

EXECUTIVE SUMMARY
Strategic management refers to the preparation of long-term objectives and goals for the
organization which also formulate the specific course of action for the achievement of those
goals. The strategic management is helpful for companies to attain a competitive advantage in
the global market. The report is related to strategic management of Al-Ghanim industries,
Kuwait and for that different types of analysis has been done to know about the competitive
position in the global market. In this regard, it has been identified that the company is keeping a
competitively strong position in the market due to brand image, quality products and better
customer relations. Hence, several recommendations have been provided for the management,
marketing and R&D department for the improvements and new strategies have also been
implemented for the expansion of businesses.

Table of Contents
1.0 INTRODUCTION................................................................................................................1
2.0 EXISTING VISION, MISSION, OBJECTIVES AND STRATEGIES....................................1
2.1 Company information............................................................................................................1
3.0 DEVELOPING VISION AND MISSION STATEMENTS FOR ORGANIZATION.............2
4.0 EXTERNAL ANALYSIS.........................................................................................................3
4.1 Recognizing an organization's external opportunities and threats.........................................3
4.2 Developing PESTLE analysis................................................................................................3
5.0 CONSTRUCTING COMPETITIVE PROFILE MATRIX (CPM)...........................................5
6.0 CONSTRUCTING AN EXTERNAL FACTOR EVALUATION MATRIX (EFE)................6
7.0 RECOGNIZING THE ORGANIZATIONS INTERNAL STRENGTHS AND
WEAKNESSES...............................................................................................................................7
8.0 CONSTRUCTING AN INTERNAL FACTOR EVALUATION MATRIX (IFE)..................8
9.0 RECOMMENDING LONG-TERM OBJECTIVES AND SPECIFIC STRATEGIES............9
9.1 Recommending long-term objectives....................................................................................9
9.2 Specific strategies to achieve long-term objectives...............................................................9
9.3 Comparing recommendations to actual strategies planned by the company.......................10
10.0 APPLICATION OF TWO MATRIXES...............................................................................10
10.1 Boston Consultancy Group Matrix (BCG)........................................................................11
10.2 Grand strategy matrix........................................................................................................11
11.0 SPECIFYING THE RECOMMENDATIONS FOR MANAGEMENT, MARKETING AND
R&D...............................................................................................................................................13
12.0 RECOMMENDING PROCEDURES FOR STRATEGY REVIEW AND EVALUATION
.......................................................................................................................................................14
13.0 CONCLUSION......................................................................................................................14

REFERENCES..............................................................................................................................16
List of tables
Table 1: External opportunities and threats of Al-Ghanim industry...............................................3
Table 2: CPM matrix for Al-Ghanim industry................................................................................5
Table 3: EFE matrix of Al-Ghanim industries................................................................................6
Table 4: Internal strengths and weaknesses of Al-Ghanim industries.............................................7
Table 5: IFE matrix for Al-Ghanim industry...................................................................................8
List of figures
Figure 1: BCG matrix for Al-Ghanim industries...........................................................................11
Figure 2: Grand strategy matrix of Al-Ghanim industries.............................................................12

1.0 INTRODUCTION
Strategic management is used by the organizations for the management of resources to
achieve the vision, mission and objectives (Freeman, 2010; Wheelen and Hunger, 2011; Eden
and Ackermann, 2013). It is also associated with the formulation and implementation of
strategies to attain the organization’s strategic intentions. In this regard, the current report is
based on the strategic analysis of Kuwait based Al-Ghanim industries. In this context,
environmental analysis has been carried out by using SWOT and PESTLE analysis. Further,
Competitive Profile Matrix (CPM), External Factor Evaluation (EFE) and Internal Factor
Evaluation (IFE) matrix have been constructed with regards to Al-Ghanim industries. Apart from
this, Boston Consultancy Group (BCG) and Grand strategy matrix have been applied for the
entire analysis of the company. At the end, appropriate recommendations have also been
provided for the growth of the businesses.
2.0 EXISTING VISION, MISSION, OBJECTIVES AND STRATEGIES
2.1 Company information
Al-Ghanim industries is the largest multinational sector of several privately-owned
companies of Gulf region, Kuwait. The company is operating the businesses since 1932 in
Kuwait and it has various branches in almost 40 countries. Further, Al-Ghanim industries
involve in 30 types of diversified businesses such as automotive, construction, media, FMCG
products, furniture etc. Moreover, it also deals in oil and petroleum, travel, retail, food and
beverages, insurance, engineering and other consumer services etc. (Al-Ghanim industries,
2018). Apart from this, the company is a market leader with diversified multinational
corporations and products. On the other hand, the company is offering high-quality products and
different new brands in the market involving ALGO elevators, Alaska air conditioners and
Wansa consumer electronics (Al-Ghanim industries, 2018). The company is affiliated with 300
international and regional brands along with brand partners involving Europcar, Honda, OREO,
Palmolive, American express etc.
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Vision- Vision of the company is to become more successful, victorious and affluent company in
the region as well as international level (Al-Ghanim industries, 2018). In this way, the company
is straightforward towards the vision by offering the diversified products.
Mission- The mission of the company is to deliver the remarkable values to stakeholders and
consumers with the help of consistent quality products. Moreover, for the achievement of vision,
the company is focused on empowerment, high performance and passionate teams in the
industries (Al-Ghanim industries, 2018).
Objectives and strategies- The objectives are helpful to create the firm more competitive in the
market (Scarborough, 2016). The Al-Ghanim has several specific objectives to achieve the
success and create value which are as follows-
 To be customer centered by offering the quality products and services
 To achieve the expected growth in the international market
 To emphasize the empowerment and teamwork for the achievement of vision and mission
 To maintain diversified and open cultural environment in the organization
Strategies- Currently Al-Ghanim is using different types of business strategies such as growth
revenues and constant improvement strategy etc. to attain vision, mission and objectives of the
company. Further, the company is committed towards the expansion strategy along with an aim
to enhance the retail industry in Kuwait as Assima mall which is a part of Assima project and
going to launch in the upcoming year (Al-Ghanim industries, 2018.).
3.0 DEVELOPING VISION AND MISSION STATEMENTS FOR ORGANIZATION
On the basis of existing vision, mission and objectives, the additional vision and mission
have been developed for Al-Ghanim in a strategic manner, so that company can expand the
business in other countries.
New Vision- To enrich the retail industry in Kuwait, bring international brands to Assima mall
along with a new vision for Arab employment.
New Mission- For the achievement of new vision, the company decided to commit the
expansion strategy for the diversified industries with the involvement of a skilled workforce.
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4.0 EXTERNAL ANALYSIS
4.1 Recognizing an organization's external opportunities and threats
A SWOT analysis is used to know about the external opportunities and threats of the
company which also contains to strength and weaknesses (Nikolaou and Evangelinos, 2010).
External threats affect the business adversely because they are not under the control of the
company. In this regard, on the basis of SWOT analysis, it has been found that Al-Ghanim
industries have various opportunities and threats in the international market as follows-
Table 1: External opportunities and threats of Al-Ghanim industry
Opportunities (W)
 Possibility to become a major supplier
of a diversified product range
 Coverage of entire consumer market
 Uses of vibrant and experienced
employees for future success
 Attractive investment opportunities as a
low-income women entrepreneur
 Become a part of Corporate Social
Responsibility (CSR) through a
donation to Kerala relief fund
Threats (T)
 Availability of competitors
 Easy access to subsidiary goods
 Mis-management of retail stores all
over the world
4.2 Developing PESTLE analysis
PESTLE analysis is the framework which is used to analyze the external factors of the
environment such as political, economic, social, technological, legal and environmental etc.
(Srdjevic, Bajcetic and Srdjevic, 2012). In this context, a PESTLE analysis has been done for
Kuwait country as follows-
 Political factors- There is a political disturbance in Kuwait in various political leaders
because the existing conditions of the country making it closed economy; however, the
other political leaders want to make it liberalized economy to derive the advantages from
the foreign countries (BBC News, 2018). On the other hand, the economy of Kuwait is
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not vibrant enough due to which it is dealing with the issue of putting the higher prices of
home-produced products. The economy of the country is based on the higher level of
export of oil. Apart from this, the respective country is not following the business law
which is a political issue for the country. For example- Kuwait airline was sued by an
Israeli citizen because the airline does not issue a ticket to that citizen due to the absence
of business law (Lucintel, 2016).
 Economic factors- The economic conditions of Kuwait were strong before a century ago
because the economy was based on the export of pearls. Now, the economy depends on
the export of oil because it has a major contribution to the growth of GDP. Further,
government income arising from the export of products which is 95% in a ratio (Business
Wire Inc, 2013). Here, the government of Kuwait is emphasizing to make the country
open economy by expanding the dependency of oil. On the other hand, the government of
the respective country is trying to keep prices of products stable which is helpful to
increase the revenue of the country. Apart from this, the current economic condition of
Kuwait is not better because of reduction in GDP ratio. However, the government is
putting efforts to improve the GDP in upcoming years from 0.8% to 3% p.a. which would
be helpful to improve the lifestyle of people (The Heritage foundation, 2018).
 Social factors- Kuwait is relatively surrounded by experienced people because of a large
number of migrations from foreign countries to Kuwait. The major social factor of
Kuwait is the availability of natural resources which enhances the GDP of the country.
The government of the respective country is forced by the citizens to create employment
opportunities for the local citizens on a primary basis and limits the number of migration
ratio. Besides of these, Kuwait is dealing with the social challenges such as maximization
of crime in the country which causes a higher level of corruption (Lucintel, 2016).
 Technological factors- Technological factors of Kuwait are advanced in nature because
the country is based on the mining of natural resources involving oil. In this context, the
mining procedure is based on modern techniques which are helpful to cover the entire oil
segment. The country is based on the technological projects which have a contribution to
make Kuwait advanced in different types of industries (Business Wire Inc, 2013). On the
other hand, the respective country has well educated and skilled workforce which is
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fruitful for technology-based industries to provide effective services involving an
automobile, information technology, telecommunication etc. (Lucintel, 2016).
5.0 CONSTRUCTING COMPETITIVE PROFILE MATRIX (CPM)
CPM is a strategic analysis which is used by the organizations to compare with major
competitors of the industry (Capps and Glissmeyer, 2012; Sohel, Rahman and Uddin, 2014). In
this regard, a CPM matrix has been consolidated for Al-Ghanim as per the critical external and
internal environmental factors of the firm. So, the company can easily identify that the strategies
are supportive or not for the critical success factors.
Table 2: CPM matrix for Al-Ghanim industry
Al-Ghanim company Competitor 1 (Al-
Mullah Automotive
Company)
Competitor 2
(Behbehani Motor
Company)
Critical success
factors
Weight Score Weighted
score
Score Weighted
score
Score Weighted
score
Brand reputation 0.22 4 0.88 4 0.88 4 0.88
Marketing 0.22 3 0.66 2 0.44 2 0.44
Location 0.08 3 0.24 4 0.32 3 0.24
Customer
Service 0.2 4
0.8
4 0.8 4 0.8
Product quality 0.2 4 0.8 4 0.8 4 0.8
Loyalty of
customers 0.08 3
0.24
3 0.24 3 0.24
Total Score 1 3.62 3.48 3.4
Key milestones of table-
Rank 4 - shows the strong position
Rank 1- displays the poor requirements
Weight has been assigned between 0 to 1
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There is a set of standards for the CPM matrix that is 2.5 average weighted score is considered
as a benchmark for the analysis of competitors (Borajee and Yakchali, 2011). In this regard, on
the basis of critical success factors, Al-Ghanim industries has got 3.62 average weighted score,
Al-Mullah automotive scored 3.48 and Behbehani Motor Company acquired 3.4 weighted
average score in the competitive matrix. Hence, it shows that all the companies are having a
strong position in the marketplace because they derived higher than 2.5 set of benchmarks.
However, both are the strong competitors of Al-Ghanim industries in the international market.
6.0 CONSTRUCTING AN EXTERNAL FACTOR EVALUATION MATRIX (EFE)
EFE matrix is used to analyze the external factors of the company through opportunities
and threats (Ommani, 2011). In this context, an EFE matrix has been constructed for Al-Ghanim
industries as follows-
Table 3: EFE matrix of Al-Ghanim industries
Weight Rating Weighted score
Opportunities
1. Possibility to become a major
supplier of diversified
products
2. Coverage of entire consumer
market
3. Uses of vibrant employees
for future
4. Investment opportunities in
low-income women
entrepreneurs
0.40
0.25
0.20
0.15
1
2
4
3
1.6
0.5
0.8
0.45
Threats
 Availability of competitors
 Easy access to subsidiary
goods
 Mis-management of retail
stores all over the world
0.70
0.10
0.20
1
2
3
0.70
0.20
0.60
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Total weighted score 6.4
In the EFE matrix, weight has been assigned between 0 to 1 and rate has been given
between 1 to 4. On the basis of EFE matrix, it has been found that the respective company is
having a strong position in the competitive market because it has a better total weighted score
which is more than average score (2.5) of the company (refer table 3). In this matrix, 4 displays
the company’s current strategies are not powerful and have the least importance to the company
whereas 1 shows the superiority of strategies as well as more significant impact on the Al-
Ghanim industry.
Key points of table-
Rank 1- shows that strong threats and opportunities of the market
Rank 4- indicates the least impact of threats and opportunities on business and remaining are
the average points for the company
7.0 RECOGNIZING THE ORGANIZATIONS INTERNAL STRENGTHS AND
WEAKNESSES
On the basis of SWOT analysis, internal strengths and weaknesses of Al-Ghanim industries has
been identified. Strengths show the internal effectiveness of the company and weaknesses
indicates that the respective company is lacking in the specific sectors (Amin, Razmi and Zhang,
2011). According to table 4, it has been recognized that a company has a strong market position
for being a market leader. However, the company is lacking at internal cultural environment due
to the diversity of employees.
Table 4: Internal strengths and weaknesses of Al-Ghanim industries
Strengths (S)
 Diversified portfolio of products and
services
 Strong brand value
 Quality products
 Better customer services
 Availability of skilled workforce
Weaknesses (W)
 Excessive work load for employees
 Cultural barriers in the organization
 More associated with employees
 Do not follow the business laws
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 Focus towards communities and giving
foreword aspects
8.0 CONSTRUCTING AN INTERNAL FACTOR EVALUATION MATRIX (IFE)
IFE matrix is a strategic tool of management which is adopted by organizations to evaluate the
internal strengths and weaknesses (Capps and Glissmeyer, 2012).
Table 5: IFE matrix for Al-Ghanim industry
Weight Rating Weighted score
Strengths
 Quality product
 Strong brand value
 Diversified portfolio of
products
 Availability of skilled
workforce
 Better customer services
 Focused towards communities
0.25
0.25
0.20
0.10
0.10
0.10
1
1
2
3
2
4
0.25
0.25
0.4
0.3
0.2
0.4
Weaknesses
 Excessive work load for
employees
 Cultural barriers in the
organization
 More associated with
employees (Decentralized
decision-making)
 Do not follow the business
laws
0.20
0.30
0.30
0.20
4
3
2
1
0.4
1.2
0.9
0.6
Total weighted score 3.1
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