Ghani Glass 2007
Ghani Glass 2007
Ghani Glass 2007
PREFACE
He who seeks find
By Allahs grace and His blessings we are able to complete our PROJECT that was assigned to us by our respected PROFESSOR DR.SHOUKAT ALI RAZA who gave us an opportunity to prove our abilities and to learn from practical environment. We pay gratitude to our Parents, who made us able to reach here and explore the corporate world. This project helped us to flourish our technical and personal skills in the subject.
ACKNOWLEDGEMENT
Praised to ALLAH ALMIGHTY who enabled us to successfully complete the project. Here we would like to say few words of gratitude for those without whom this project could have ever been completed. First of all we would like to pay our gratitude to our respected Professor DR.SHOUKAT ALI RAZA who covered each and every aspect of subject, which would enable us to survive in marketing environment. We also want to thank our loving parents whose moral support made us able to complete our project successfully. We wish to acknowledge the management of Ghani Glass. Special thanks and appreciation to MR. AZIZ MUNEER Asst Brand Manager who provided congener atmosphere to us for learning with full zeal of corporation and support. Although we cannot mention the name of every person but the whole management and infect every soul there was extremely cooperative and helpful.
MISSION
To be successful by Effectively & efficiently Utilizing our Philosophies, So that we achieve & maintain Constantly the High Standards of Product Quality & Customer Satisfaction.
CHAPTER 1
GROUP INTRODUCTION Ghani Group is a Lahore based Group. The founder of Ghani Group (Late) the Sheikh Abdul Ghani started business carrier of the Group in 1963 and established a coal/ silica sand mining firm in the name of Ahmad Brothers and Company. Alhamdulillah now the group is running a diverse range of businesses including three glass plants, an automobile plant, number of leading mining companies, and trading houses and has an annual turnover of over Rs 8 Billion. The origins of this group can be found in the mining industry given its involvement in coal, salt and sand mining since 1959. The substantial strategic benefits of vertical integration led them to consider venturing into the manufacturing field in subsequent years. The chosen manufacturing field was glass manufacturing due to the robust demand for glass products in the country. The Ghani Group was not new to the glass manufacturing industry. They had been supplying silica sand to the glass industries four decades back. Their dedication to quality and customer service allowed them to land an exclusive 25-year excellence certificate from Phillips. Their venture into the manufacturing field took the form of Ghani Glass, incorporated in 1992 and starting production in 1995, forming the first step on the road to success of Ghani Glass limited, which today own three glass plants namely GGL1 Hattar, GGL2 Landhi and GGL3 Sheikhupura Road.
The diversified businesses operating under the umbrella of Ghani Group are as follows: Ghani Glass Limited, Hattar (GGL-I) Ghani Glass Limited, Karachi (GGL-II) Ghani Glass Limited, Sheikhupura (Float Glass Plant) Ghani Automobiles Limited (formerly Ghani Textile Ltd.) Makerwall Collieries Limited Ghani Mines (Pvt.) Limited Ghani Chromites Mines Pvt. Limited Ghani International Ghani Corporation Ahmed Ghani Joint Venture Al-Muhandus Corp. Ahmed Brothers and Co.
HISTORY Ghani Glass Limited was incorporated in 1992 and during 1994 the company was listed on stock exchanges. The Company setup its glass plant in village Shadi of district Haripur and started commercial production in 1995. This plant was the first to facilitate the GMP requirements of pharmaceutical industries. This demand resulted from their strong focus on product quality, testament to which is the ISO 9002 certification that the plant received in October 1998. This made Ghani Glass the first ISO certified Glass Company in Pakistan. Within a short span of time, Ghani Glass became the leading manufacturer of glass products in Pakistan.
To meet the customer demand and honor the in time delivery promises, management invested more than Rs. 130 million and build an entirely new plant in the same premises at Ghani Glass Hattar. At that time in Ghani Glass Hattar there were now two separate state-of-the-art glass plants, each having a daily production capacity of 125 tons. Two mega size furnaces are controlled by auto optic fiber system, designed and installed by SORG, Germany. There are seven high-speed machines, working around the clock, producing top quality glass bottles and covering the range of all kinds of USP type-III 7.5ml to 1000ml Amber and clear glass bottles vials and jars for the pharmaceuticals and Food & Beverages industries to meet the requirement of local and international markets. Ghani Glass had led the way by introducing 8 section machines for the first time in the country, paving the way for other glass manufacturers to adopt the same technology. To step forward for adoption of available technology in the world..
ORGANIZATIONAL STRUCTURE
President (CEO)
Vice President
Managerial Staff
Clerical Staff
Non-Clerical Staff
Cashier
Typist
Clerks
Guards
Messengers
WHAT IS STRATEGIC BUSINESS UNIT A strategic business unit is a significant organization segment that is analysed to develop organizational strategy aimed at generating future business or revenue. Exactly what constitutes an SBU varies from organization to organization. In larger organizations, an SBU could be a company division, a single product, or a complete product line. In smaller organizations, it might be the entire company. Although SBUs vary drastically in form, they have some common characteristics. All SBUs are a single business (or collection of businesses), have their own competitors and a manager accountable for operations, and can be independently planned for. Now, the following are strategic business unit of Ghani glass. FLOAT GLASS PHARMACEUTICAL GLASS FOOD GLASS BEVERAGES GLASS
FLOAT GLASS
INTRODUCTION Marketing decisions generally fall into the following four controllable categories Product Price Place (distribution) Promotion The term "Marketing mix" became popularized after Neil H. Borden published his 1964 article, The Concept of the Marketing Mix. Borden began using the term in his teaching in the late 1940's after James Culliton had described the marketing manager as a "mixer of ingredients". The ingredients in Borden's marketing mix included product planning, pricing, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding and analysis. E. Jerome McCarthy later grouped these ingredients into the four categories that today are known as the 4 P's of marketing, depicted below
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These four P's are the parameters that the marketing manager can control, subject to the internal and external constraints of the marketing environment. The goal is to make decisions that center the four P's on the customers in the target market in order to create perceived value and generate a positive response.
PRODUCT
FLOAT GLASS The term "Product" refers to tangible, physical products as well as services. Now, our product here is Float glass, which is a product of Ghani Glass. WHAT IS FLOAT GLASS?
Float Glass is the term for perfectly flat and crystal glass, which is free from bubbles, layers and all kinds of distortion. The term Float Glass derives from the production method, introduced in the UK by Alastair Pilkington in the late 1950s.
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for environment. Therefore, it has all the relevant certification of ISO and other operative standards. A full-fledged Nitrogen processing plant is based at GGL III. It has the
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capacity to produced ample nitrogen gas, used during tin bath of the floating glass to make it oxide free, so as to facilitate bubble/distortion free production of floating glass. The plant features an automatic and virtually intelligent Digital control system (DCS) facility that ensures error free production of extremely high grade of glass. QULALITY OF PRODUCT State-of-the-Art separate plants have highly and technologically advanced plant machinery, wide ranging logistical support and thoroughly trained professionals continues to efficiently cater to the diverse demands of both national and multinational companies. The company has a clear and distinct focus on designing, implementing and sustaining a continual quality assurance program. The TQM programs are effectively and efficiently being implemented. This is evident from the fact that the glass plants are ISO 9002 and ISO 14001 certified plants. The companys continued focus on such accreditation signifies our determination to ensure that all our processes and systems are adequate, relevant and current to help satisfy the stringent quality requirements of the local and global glass containers industry. It is our desire to consistently provide products that satisfy the requirements of the local and global clients. STANDARDS & TECHNICALS Ghani Float glass follows the international ASTM standards (American society for testing and measurements standards). At each and every step, it is ensured that no compromise is made in strictly following all the laid down standards and internationally laid down procedures. This is the reason why Ghani Float glass has been able to give consistent to the market.
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Light transmittal value = 84% of L.T.V. Distortions value against Zebra Board = 55 degree Floats value for mirror quality = 50 degree Finishing = Smooth (as per standards) Edging = Proper (as per standards)
Ghani Float available in more than 180 sizes in thickness of 2mm to 12 mm throughout the country.
GHANI GREEN
Ghani Green, the First Evergreen Float glass of Pakistan, made in Pakistan, had been launched by Ghani Float. This green float glass is available in all thick nesses from 2 mm to 12 mm. Ghani Float did a tremendous effort from of going into color float glass successfully within just one year of its operations. Ghani Green has saved a lot of foreign exchange for the country, as the imports of green float glass from outside of Pakistan almost stopped.
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GHANI BROWN
Ghani Glass Limited, innovation is our stance and R & D is our tradition. Keeping in line with this vision, Ghani Float has released the second color in its Float glass range. This is a break through not only in the Pakistan's history but also worldwide that a float glass manufacture has given two colors to the market within two years time of its inception. The brand name for the brown float glass is Ghani Brown, which is also available throughout Pakistan in full range of sizes and thick nesses from 2mm to 12mm.
USAGE AND ADVANTAGES OF GHANI GLASS Ghani float has taken leads the pioneer top quality producers of float glass in Pakistan. Ghani glass quality products are increasingly utilized throughout the county for DOMESTIC, COMMERCIAL and INDUSTRIAL purposes, in the following areas like shopping malls, multi storey building, plazas, appropriate for making of looking glass mirrors and tempering of all types and all applications.
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Ghani glass is extremely suitable for tempering purposes. Ghani glass holds the distortion of being declared as the fastest glass for tempering at the big five, Dubai from worlds 5 top glass tempering companies. That is why Ghani glass is a major supplier to glass tempering companies of Pakistan. Moreover, looking at the advantages of using Ghani glass, it proves to be cost effective in place of cement and steel structures. PRICE (FLOAT GLASS) One of the four major elements of the marketing mix is price. Pricing is an important strategic issue because it is related to product positioning. Furthermore, pricing affects other marketing mix elements such as product features, channel decisions, and promotion. We will discuss here price of Ghani float glass. Some factors which is helpful for determine the price of Float glass. PRICING STRATEGY Pricing strategy is the important factor which is determines the price of product. The price of Float glass is as compare to imported glass is approachable to consumer. The quality standard of Ghani Float glass meets to imported glass. So, pricing strategy Ghani 16
Float glass is fabulous which create a center of attention the marketer both factors involve in quality and price. RETAIL PRICE Ghani Float glass has retail price for consumer. It is also important to decision making of product. Ghani Float glass also available in market at retail price. WHOLESALE PRICE Ghani Float glass is also available in wholesale price for the only distributors. Through the distributors the product of Float glass reached to final consumer. CASH DISCOUNT Cash discount is offer to the distributors. Cash discount is good offers for distributors interest. PRICE FLEXIBILITY Price flexibility is occurring due to international market fluctuation. Ghani Float glass Price wills high if the international market price high. PLACEMENT (FLOAT GLASS) Placement of product is also an essential part of marketing mix. Placement of Ghani Float glass is very strong in Pakistan and outside of country. Ghani glass is being exported to cover 12 countries globally, in the presence of competition of internationally renowned players of the float glass industry. More ever, this endeavor is absolutely in line with Ghani glass vision of becoming a market leader not only in Pakistan but also globally. There is some dealer in Pakistan in which it sells our product.
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Dealers Name Haji Rafique & company Qasim Brother Majeeb glass House New pak Glass Corporation Zain Traders Al karam Glass House National Glass House Shan Glass House Classic Traders Sheesh Mahal Amafahh traders Lucky glass A Crystal glass house Z-M-corporation G-H-Enterprises
Contact person Muhammad Rashid Muhammad Qasim Haji Muhammad imtiaz Atif ilyas Asmat ullah Muhammad ijaz Haji Abdul Hameed Awan Haji Tariq Javed Khawaja Tahir Zia khan Tayyab Ali Aslam Shabeer H Rangoon wala Muhammad zubair Gulam Hussain
Area Lahore Lahore Faisalabad Gujarat Sargodha Rawalpindi Islamabad Peshawar Lahore Multan Karachi Karachi Karachi Rahim yar khan Quetta
MARKET COVERAGE; Float glass market coverage through the distributors points. Float Glass has got 75% of market share. Ghani float has taken leads the pioneer top quality producers of float glass in Pakistan. Ghani float is the leader in Float glass market.
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PROMOTION (FLOAT GLASS) Ghani glass follows different promotion activities for the promotion of Ghani Float glass, which is described, bellowed. DOKAN TO DOKAN DEALERS TRIP ANNUAL SALES CONFERENCE ADVERTISING DOKAN TO DOKAN Ghani glass promotes the Float glass through the DOKAN TO DOKAN campaign. Through this campaign Ghani glass achieved the huge market share. Sale department go to door to door every shopkeeper for the promotion of Ghani Float glass. In this way Ghani Float glass take over the Float glass market. Now, Ghani Float glass has 75% market share in Float glass. DEALERS TRIP Ghani glass arise the competition in dealers. At the end of ever year who three dealers have more sale other dealers go for trip. Through this competition sales volume of Ghani float glass increase. In this way Ghani Float glass rapidly capture the market share. ANNUAL SALES CONFERENCE Annual sale conference held at end of every year. In this conference announce the best area sale manager for the year and prize distributed among the area sale manager. This also the best way for the promotion of product through encourages the sale department.
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ADVERTISING Ghani Float glass also promote through the advertisement. Float glass advertise through newspaper, magazines, architect magazines, engineering magazine and billboards etc. So, different medium of promotion use for the promotion of Ghani Float glass. All mediums of advertising play a vital role for the promotion of Float glass.
MARKET SEGMENTATION Market segmentation is the identification of portions of the market that are different from one another. Segmentation allows the firm to better satisfy the needs of its potential customers. The following are the market segment areas of Ghani Float glass. DOMESTIC AREA COMMERCIAL AREA INDUSTRIAL AREA
MARKET POSITIONING In Marketing, positioning is the technique in which marketers try to create an image or identity for a product, brand, or company. It is the place a product occupies in a given market as perceived by the target market. Positioning is something that is done in the minds of the target market. A products position is how potential buyers see the product. Positioning is expressed relative to the position of competitors. Market Positioning of Ghani Float glass in following areas. All leading construction companies - local and multinational.
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All leading architectural and engineering companies. All leading builders - local and multinational. All national and multinational companies of Pakistan.
TARGET SEGMENTATION A target market is the market segment which a particular product is marketed to. It is often defined by age, gender and/or socio-economic grouping.
Targeting strategy is the selection of the customers you wish to service. The decisions involved in targeting strategy include. The following are the Target segmentation areas of Ghani Float glass. DOMESTIC AREA COMMERCIAL AREA INDUSTRIAL AREA
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growth-share matrix thus maps the business unit positions within these two important determinants of profitability.
Placing products in the BCG matrix results in 4 categories in a portfolio of a company: when we place the products of Ghani glass in Boston Consulting Group we get the following results. Ghani glass has four majors products, which is given below. FLOAT GLASS PHARMACEUTICAL GLASS FOOD GLASS BEVERAGES GLASS STARS: (=High Growth, High Market Share) According to Boston Consulting Matrix Food glass and the Beverage glass fall in the Stars. Because the Foods glass and the Beverage glass have the high growth rate and high
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market share in the glass. Foods glass and the Beverages glass 69% market share of the total market. CASH COWS: (=Low Growth, High Market Share) Ghani glass limited, popular as leaders in glass, fulfills major market needs of the glass of the country. According to Boston Consulting Matrix Float glass and the Pharmaceutical glass fall in the Cash Cows. Because the Float glass and the Pharmaceutical glass have the Low growth rate and High market share in the glass. Float glass has 75% market share and the Pharmaceutical glass has 88% market share of the total market. Next two categories of the Boston Consulting Group are Question Mark and Dog. No any product of Ghani glass falls in to these two categories.
SWOT ANALYSIS
STRENGTH Market Share leader in Pakistan. Strong technology base and state of the art equipment. Strong in house R&D for New Product development. Low Debt Equity Ratio. Following all international Quality control Centers Exporting Float Glass Globally. Strong Focus on environment, friendly operation. Effective logistics control and material Handling.
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WEAKNESS Packaging Problem No insurance (on float glass). Price varying day by day. No protection provided. Not meeting the needs of the market. OPPERTUNITIES Developing new rang of products. Local competitors have poor products. Could extend to around the world. Product development process is going on Process Temper and Float glass. Can surprise competitors while introducing Reflected Mercury Glasses. THREATS Political Factors No media Campaign because Court Decision. Economic Factors.
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PEST ANALYSIS
POLITICAL Govt. Impose taxes on Import. Govt. Policies are helping full for export no apposing of taxes. India and Pakistan rising tension. ECONOMICS Worse economy situation. Because of unavailability of gas, electricity. General taxation issues. Buying Power decreases. Devaluation of Pakistan economy. SOCIAL Old fashioned and monotonous face of the buildings had now been replaced by the Float glass both in plain and colored version. Consumer attitudes and opinions are positive. Advertising and publicity campaigns. TECHNOLOGICAL Competing international ASTM standards (American Society for testing and measurements standards) and ISO certification. No compromise on meeting laid down standards. Using DCS(Digital Control System) facility ensure error free production of extremely high quality grade of glass Plants have its own power generation plant.
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PRICING STRATEGY
FLOAT GLASS There are many ways to price a product. They are a four important beast policies/strategy which is the best for a product. ECONOMY PRICE STRATEGY SKIMMING PRICE STRATEGY PENETRATION PRICE STRATEGY PREMIUM PRICE STRATEGY Now, we will only discuss here pricing strategy which is adopted by ghani glass in ghani Float glass. Ghani glass adopte the premium price strategy in ghani Float glass. PREMIUM PRICE STRAEGY Ghani Float glass adopte a premium price strategy. According to this strategy ghani Float glass charge a high price with high quality of Float glass. Quality of Ghani Float glass approch the imported Float glass. Ghani float has taken leads the pioneer top quality producers of float glass in Pakistan. Ghani glass quality products are increasingly utilized throughout the county. That is the one reason for charge the premium price.
COMPETITOR ANALYSIS
FLOAT GLASS INTRODUCTION In formulating business strategy, managers must consider the strategies of the firm's competitors. While in highly fragmented commodity industries the moves of any single competitor may be less important, in concentrated industries competitor analysis becomes a vital part of strategic planning. 26
Competitor analysis has two primary activities. 1) Obtaining information about important competitors 2) Using that information to predict competitor behavior. The goal of competitor analysis is to understand: OBTAINING INFORMATION AND PREDICT COMPETITOR BEHAVIOR Ghani glass is the leader in glass industries. Ghani float has taken leads the pioneer top quality producers of float glass in Pakistan. Ghani glass quality products are increasingly utilized throughout the county for DOMESTIC, COMMERCIAL and INDUSTRIAL purposes, in the following areas like shopping malls, multi storey building, plazas, appropriate for making of looking glass mirrors and tempering of all types and all application. So, Ghani glass has only one competitor in glass industries that Khawaja glass. Khawaja Float glass quality is not meet with Ghani Float glass. Ghani Float glass only one leader in glass market through quality and demand vise. Ghani glass obtained the information of competitor through different sources. One source is strength and weekness of the competitor continous observe. WEEKNESS OF COMPETITOR Following are weekness of competitor. QUALITY STANDARAD NEW VARIATION IN PRODUCT LATEST DESING AND COLORS CONSUMER DEMAND MARKET SHARE PRODUCTION METHOD
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THROUGH RESEARCH AND DEVELOPMENT Another source of ghani glass is reseach and development department which is very strong department of Ghani glass. Ghani glass believes in continued research and development. May it be in the form in the human resources, technical facilities, engineering break break throughs or exploring of new horizons, Ghani glass puts a lot of interest by way of involvement of both time and money. However, a great emphasis is also given to the quality of research and development along with quantity. MEDIA CAMPAGIN Ghani Float Glass could not launch the media campaign because competitor KAWAJA GLASS Sue against them in the High Court. High Court Decision: Both companies cannot launch their media companion.
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BILLBOARDS
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MAGZINE Ads
These are basic steps you may use when evaluating company cases in my graduate and undergraduate business strategy and business policy courses. 31
NET SALE GROSS PROFIT PROFIT BEFORE TAXATION TOTAL ASSETS SHARES HOLDER EQUITY MARKET PRICE OF SHARE
NET SALE Net slae of the Ghani glass during the year 2010 is 4000 Million. The net sale in 2009 is above 3000 Million. The net sale of Ghani glass increase very repadily.
GROSS PROFIT Gross profit of the Ghani glass during the year 2010 is above 1200 Million. The gross profit in 2009 is near the 800 Million.
PROFIT BEFORE TAXATION Profit before taxation of the Ghani glass during the year 2010 is 800 Million. The profit before taxation in 2009 is above the 500 Million.
TOTAL ASSETS Total assets of the Ghani glass during the year 2010 is above 4500 Million. The total assets in 2009 is near the 4000 Million.
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SHARES HOLDER EQUITY Shares holder equity of the Ghani glass during the year 2010 is near 3000 Million. The shares holder equity in 2009 is 2500 Million.
MARKET PRICE OF SHARES Market price of Shares of the Ghani glass during the year 2010 is above Rs.135/-. The market price of shares in 2009 is above Rs75/-.
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DATA COLLECTION SURVEYS OF DIFFERENT Shops SURVEY REPORT OF NEW 100CC GHANI BIKE LAHORE MARKET SURVEY
PROJECT 1 (Annexure 1) DATA COLLECTION During first week of my internship I have collected the data of architects, builders, interiors and civil workers from the books yellow pages, BRB, ASB and building material. When I have collected the data of 3000 architectures then I told them about my new product and also conveyed them that they should introduce our product to other persons.
PROJECT 2 SURVEY OF DIFFERENT Shops During the second week of my internship I visited every shop of Walton and personally meet with the shopkeepers. I told them the characteristics of Ghani glass and told them they should keep and sell ghani glass. 34
PROJECT 3 (Annexure 2) SURVEY REPORT OF GHANI 100CC BIKE During the next two weeks of my internship I prepared a survey report on ghani bike. I took five models of the bikes and it showed 34 outsiders and 53 office personnels. I took their views and 39% liked he model first and 9% like the model second.22% liked model third and further 9% liked model fourth and21% liked model five. Therefore maximum people like model first it is launched in the market.
PROJECT 4 (Annexure 3) SURVEY OF LAHORE MARKET During last week of my internship our company found that one competitor with the name of Tariq Glass is coming in the market. Our manager asked that we should make a questioner so I made a questioner. I took those 1 to 44 shopkeepers. I filled the Performa from the shopkeepers. After finding the result I know that most of the shopkeepers relied on the Ghani glass.
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CHAPTER 3 SUMMRY
I have learnt lot of things during these two months and I completed four projects during these periods, I have improved my learning and understanding power and I experienced a competitive environment which will be greatly helpful in my future. Along with I learnt a lot of market aspects. I would like say special thanks to Ghani glass that provided me an excellent opportunity to get such supplanted experience. Ghanis team helped me and encouraged me in every field.
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RECOMMENDATION Recommendation based on two strategies that are given below: EXISTING STRATEGIES NEW STRATEGIES
EXISTING STRATEGY Ghani Float glass follows these existing strategies. Retain Customers Quality Standards & Customer Satisfactions Increase in Sale Volume
NEW STRATEGIES Ghani Float Glass follows these strategies. Long Term Approach Strong Technology Base Export Float Glass Globally
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CONCUSLION
Ghani Glass Ltd, famous as leaders in glass, fulfills major market needs of the glass sector of the country, export globally, both the Float Glass and Glass Containers for food, beverages and pharmaceuticals.
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