Friday, August 8, 2014


Every TU students studying BBA are apprised to prepare SWOT analysis in third or fourth semester. Many  of them are baffled regarding format, criteria and content of SWOT analysis report. Herein, i have provided a sample of SWOT analysis report. I hope it will be helpful for all of you friends studying BBA. This report is written for the sole purpose of assisting students. 

Cover page:


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
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
































  





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