NAME OF COLLEGE-----
FACULTY OF MANAGEMENT
BACHELORS IN BUSINESS ADMINISTRATION
YEAR II FOURTH SEMESTER 2014
A REPORT ON
SWOT ANALYSIS OF ‘WAI WAI’ NOODLES OF CG
Submitted by:
Submitted to:
---------------- ---------------
Second page:
Acknowledgement:
It is a pleasure to
get acquainted with the, resources, business operations, and employees thereby
CG group of companies. As a business student, we got an opportunity to meet and
understand the business operation of Chaudhary group of industries. After our
meeting with marketing manager, we realized that all the entrepreneurs and
students who have interest in business can understand how successful
entrepreneur, Mr. Binod Chaudhary got into the business and how succeeded on
that, which is going to motivate youths like us.
First and foremost,
we would like to express our gratitude to our principal ------ (name) and all the college staffs who cooperated with us to
visit there. Then as well we would like to request the college management to
make arrangements for meeting with manager which helped us to know about the
business climate of our country.
We are fully
confident that whoever read this report will make up mind to visit CG group of
industries and genuinely be interested to learn more not only of Chaudhary
group but also different business in the nation where people are slowly
advancing ahead in terms of business utilizing local resources.
Third page:
Table of contents:
1.0 List of illustration……………………………………………………IV
2.0
Background.……...…………………………………………………..V
1.
3.0
Introduction……………………………………………………….....1-3
3.1 Purpose……………………………………………..…………1
3.2 CG as a multi-brand company……………….……..................1
3.5 Visuals showing facility of CG
group………………………..2-3
4.0 Discussion………………………………………………………….3-11
4.1 Types of Noodles ………………………………………………3
4.2 SWOT analysis………………………………………………4-11
i.
Strength
ii.
Weakness
iii.
Opportunities
iv.
Threats
5.0 Conclusion ……………………..…………………………………….12
6.0 Work
Cited………………………………………….....………………13
Fourth page:
List of illustration:
·
Fig. 1……………………“Wai Wai” varieties
·
Fig 2……………………...CG Digital
·
Fig 3……………………….Feast Masala
·
Fig 4……………………………CG cement
·
Fig 5……………………………….Rio
·
Fig 6…………………………………… “Wai Wai”
·
Fig 7……………………………………..CG ice beer
·
Fig 8……………………………………….Kwiks cheese ball
Fifth page:
Background:
Chaudhary
Group is a
multi-industrial transnational conglomerate having diversified
interests across various sectors established by Binod Chaudhary
with the investment of Rs. 20 crores with technical collaboration from Thai Preserved Food Factory
(TPFF), Thailand. Inspired from
his industrious father, Chaudhary always envisioned becoming a very big
industrialist of Nepal. With more than four decades of continuous hard work, he
is living his dreams as he developed the Chaudhary Group to the biggest
conglomerate of Nepal which is worth a billion dollars and more. The company includes over 40
businesses spanning across all five continents what’s more the company is a
power dominant in production and services of food, beverages, beer, tobacco,
consumer electronic products in Nepal. The company focuses
on Infrastructure, homes, real estate, healthcare, education and power sector
in. It is the only billion dollar company of Nepali origin that also has an
impact on the south Asian Food and Beverages market. Today brands like WAI-WAI noodles (must
successful business) are the market leader in its segment and a household name
not only in Nepal, India & Bhutan but also in the fast growing markets
across the world.
In this way, Mr. Binod Chaudhary
is providing a credible example of individual initiative and leadership which
is especially inspiring given Nepal’s entrepreneurial climate.
Sixth page:
Introduction
Purpose:
The main purposes to
prepare this report are:
·
To arrive at a deeper level
of insight on Chaudhary Group's strategic planning and production process where
it connects its objectives and strategies to actionable tactics carried out by
employees
·
To impart the finding of SWOT analysis on
Chaudhary Group’s noodles ‘wai wai’
·
Business aside, our primary goal is to
help people to know how successful entrepreneur, Mr. Binod Chaudhary got into
the business and how succeeded on that, which is going to motivate youths like
us
CG as a multi brand company:
The
Group's progress over the last sixty-seven years has been a trial-blazer on the
Nepalese horizon. In a land-locked, developing third world nation, this spells
nothing short of very hard-earned success. Apart from also being a responsible
citizen, Chaudhary Group forms an intrinsic part of every
realm of life from Biotech, Cement, Education, and Electronics & White
goods, Energy and Infrastructure, Financial Services, FMCG, Hotels & Resorts, Realty to
Retail. The CG touches every aspects of public life- with presences in
industries like food and beverages, apparel, health care, education tobacco,
real state, financial services, steel, automobiles, hydroelectric power, and
hospitality tourism. The CG, as the first Nepalese company, also has growing
presence in world’s competitive FMCG markets.
Seventh page:
CG products images
Eighth page:
Discussion
We also visited the CG facility and researched on the quality and types of
“Wai Wai”. We also conducted SWOT analysis of “Wai Wai” business on the basis
of that information. Some of the detail information and findings about all
these are listed below:
Instant
Noodles
Instant noodles are
available in different flavors:
Brown Noodles
·
Wai Wai is
a popular brown noodle (3 Seasonings) available in 2 different flavors -
Vegetable and Chicken. It is available in 75 gm packet.
·
Wai Wai Quick is
a brown noodle (Curry Base - 3 Seasonings) available in Vegetable and
Chicken flavors. It is available in 75 gm packet.
White Noodles
·
Wai Wai X Press is
a white noodle (2 Seasonings) available in Vegetable and Chicken flavors.
It is available in 90 gm packet.
·
Wai Wai X
Press Masala Delight is a white vegetable
noodle with 2 seasonings. It is available in 90 gm packet and 50 gm packet.
·
Soaltee is
a white noodle available in Chicken flavor. It is available in 50 gm
packet.
Snack Noodles
·
Mimi snack
noodle (2 Seasonings) available in Chicken flavor. It is available
in 50 gm packet.
Bhujia
·
Mama Bhujia is
available in Chicken flavor in three different weights - 40 gm, 10 gm and
20 gm.
SWOT Analysis:
Strengths:
“Wai Wai” has stood the pressure of
competitions and prevailed as the best instant noodle. It
has an annual turnover of Rs 3 billion, while in Nepal it is approximately
Rs 1.40 billion. “Wai Wai” is the most affordable food product. For this achievement, Mr. Chaudhary efforts
are very commendable. His dialogues in developing society collectively,
expanding, opening new markets and benefit of new products for the Nepalese
society a level of understanding far beyond can foster a polarization of
economy. Some of the strengths of “Wai Wai” business are listed below:
1.
Brand image:
“Wai Wai” is the most preferable product; what’s more it is market leader
among several noodles producer in Nepal. Its product name has entered into
language of common people and “Wai Wai” has become popular brand. Just like
popular trademarks -Cold
Means Coke, sticky tape means sellotape noodle means “Wai Wai”. ‘Wai
Wai’ instant noodle is a recognized and established brand not just in Nepal but
in 20 different countries.
2.
Huge capital:
“Wai Wai” has an
annual turnover of Rs. 3 billion while in Nepal it is approximately Rs. 1.4
billion. As Chaudhary
Group spreads
its wings beyond Nepal, it
has over 40 Companies under its umbrella and an investment outlay of over
$1 Billion. Thus, it has huge capital
which it is investing in possible areas.
3.
Quality focused:
“Quality is never an accident. It is
always the result of high intention, sincere effort, intelligent direction and
skillful execution.”
- Binod K. Chaudhary
(President, Chaudhary Group)
“Wai Wai” has been
certified ISO 22000 for food safety management system and ISO 9001:2008 for
quality management system. These certificates blindly infer people too blindly
in the product. “Wai Wai” noodles are hygienically packed in metallic wrapper and available in best
quality. Recently, “Wai Wai” has launched ‘NO MSG ADDED’ 5 grains noodle which
is suitable for people’s health.
4.
Economies of scale
production:
CG operates within 24
hours in 3 shifts with hundred percent local talents and utilizes local
resources as far as possible. This help to reduce cost and gain economies of
scale.
Strong distribution Network:
“Wai Wai” instant
noodles are the Nepal’s leading distributors having wide network of 2000
distributors all over Nepal. CG/FMCG has widest reach in the country through
its retail outlets and dealers and sub-dealers network.
5.
Higher acceptance and
global network:
Being first Nepali
multi-national company having world-class quality and unique taste of noodle it
has higher acceptance and distribution network in global market.
6.
Skilled Expertise:
Teams of highly
qualified and experienced professionals manage the company professionally. They
have the foreign experts and technician from UK, Germany, Korea, Thailand who
are assisting employees to improve work quality and efficiency.
7.
Social contribution:
Mr. Binod Chaudhary, chairman of CG group of company is also a recognized
philanthropist and till now contributed a lot in social sector. CG group fulfills its social responsibility with pride. Every year CG foundation pledges
$1 million for social business in various sectors. Some of the short listed
contributions are listed below:
v
Gyanudaya; scholarship for higher studies
v
Gyanjyoti; solar lamp distributing to students of remote
places
v
Hamroghar; for rehabilitating street children
v
Skill development training
v
Employment opportunities to locals
8.
Updated technology:
Taking about
technology CG uses German technology for snacks production. CG updates its
technology with newer ones with the pace of advancement. Similarly, training
and development programs are also conducted if the company feels employees are
having problem to get acquainted with new machines and methods.
Rests of the strengths are:
} CG , No. 1 corporate
house in Nepal
} 40 plus operating
businesses with 6000 employees
} 12 Global partners
and associates
} Presence in more than
50 countries
} Recognition from
Forbes Asia (Binod Chaudhary as a first billionaire of Nepal)
} Reputation of having
the largest yet fastest growing in all sectors of business at present
Weakness
1.
Land locked country:
In Nepal highway
routes with black pitched roads are not linked to all places of the country
because of geographical difficulty i.e. land locked structure. This has created
the problem in supply of “Wai Wai” produced in all remote places. Thus, there
is poor access and distribution in every nook and corner of the country.
2.
Supply doesn't meet
demand:
In the market there is
huge demand of “Wai Wai” but the company has been able to meet 40% of total
demand. The plant runs all day long (24 hours) in three shifts but the supply
is not adequate
.
3.
Turnover high in
sales department:
As per told by Mr.
Roshan Chettri, marketing manager there is the problem of turnover in sales
department, but in quite low percentage. On daily basis, 10-12 persons leave
the company but on contrary to that number same get involved also. Mr. Chettri
told that, this problem is especially occurring in regional salesperson. They
are poached by competitors for better pay and facilities.
4.
High competition in
cement and beverages:
Besides “Wai Wai”, in
cement, Masala and beverages there is quite high competition as these products
are new to this industry to counter with established brand existing since many
years.
- -----Taking about beverages CG only holds 8% of total market
shares.
- ---- Similarly, cement production plant has not been able to
produce the required amount to meet break-even point ( 10000 per day required
but 8000 produced).
Opportunities:
1.
Global expansion of
Business:
CG has high chance of expansion in other foreign countries
rather than India only. Till now it
exports “Wai Wai” to 58 countries but it has increasing chance to export to
other countries. Similarly, in domestic market, there is increasing population
density in metro politician cities where consumption is more than 70 percent.
2.
Brand building activities and market penetration strategy
can increase sales and build brand image among consumption group.
9
3.
Market is vacated by an effective competitor especially in
“Wai Wai”. “Wai Wai” has more than fifty percent of total market shares. There
is not effective competitor for “Wai Wai”. Mayoj and Ruchi are some competing
brand.
4.
Product Diversification:
Product
diversification can be a good opportunity for CG group of industry. It has been
launching various brands of noodles with various schemes which is quite good
sign of success.
Threats:
1.
Barriers by
infrastructure:
Our country is land lock country and due to lack of transportation in all
parts of country, CG/FMCG is not able to expand their product in various parts
of the country which is great barrier for them.
2.
Economic slowdown
could reduce demand:
The increasing economic slowdown will result the reduce of demand which is
great threat for this company
3.
Lack of subsidies
from government:
As told by Mr. Chettri, government is not providing enough subsidies as it
should provide. During loadsheding, due to the use of inverters and generators
production cost becomes high. This result high cost of product. In some cases,
product price increase by five times.
4.
New competitor in
home market:
New competitor in domestic market is a great threat. For CG/FMCG as per
data there are newly competitors entering into domestic market. For “Wai Wai”
Mayoj is competitor, for Rio real is competitor and so on.
5.
Price wars with
competitors:
When there is competition in market then there is arise a kind of war
regarding price. Increasing competition creates ups and downs in price between
competitors.
6.
Government rules and
regulations:
Political instability results the frequent change of rules and
regulations. This is a great threat for them if the changed government doesn't work in favor of them.
Ninth page:
Conclusion:
All these strength
has helped CG to be well rounded and managed business. Working in favor of and
utilizing ones strength will obviously lead CG to create a lasting image in the
international arena as well as it has already done in domestic setting. Though
the business is fostering but it has some weaknesses. Yet this business has
room for its expansion but because of several problems it has not been
possible.
Tenth page:
Work Cited:
o
Technical writing-Sharon and Jackson
o
www.chaudharygroup.com
o
Interview with Marketing manager
