IMPLEMENTATION OF MANAGEMENT

TOOLS ON
MICRO DRIP(Pvt)Ltd

Team Members:

 NAEEM IQBAL ANSARI E/M-SPR11-040

 MUHAMMAD SAJID E/M-SPR11-013
 JUNAID KHURRAM E/M-SPR11-025
 IMRAN LATIF C/E-SPR11-023
 EJAZ AKHTAR C/C-SPR11-018
 Breakup of Presentation
 Introduction of Micro drip (Pvt)Ltd

 Product Overview

 Application of Management Tools

 SWOT Analysis

 PEST

 Porter Five Forces

 Balance Score Card

 Introduction of MICRODRIP (Pvt)Ltd
1. Micro Drip (MD) is a drip irrigation company that develops
and provides high efficiency irrigation system (Drip,
sprinkler and pipe irrigation) for the purpose of saving
fertilizer, water, energy; enhance crop production and
poverty alleviation all over Pakistan.
2. Initially in 2007 MD started his business in one geography
and in one market segment, that is, interior Sindh
3. In present days Micro drip is working in all over the Pakistan.

4. Government Support to Micro Drip

 PRODUCT OVERVIEW
Rain gun Irrigation System
Drip Irrigation system
Bubbler Irrigation System
Landscape Irrigation System
RAIN GUN IRRIGATION SYSTEM
DRIP IRRIGATION SYSTEM
BUBLLER IRRIGATION SYSTEM
LANDSCAPE IRRIGATION SYSTEM


 MISSION AND VISSION
Mission
Make irrigation systems more relevant for the farmers by
adapting it to local conditions and farmer’s requirements
Vision
Increase agricultural productivity and save energy with
efficient irrigation systems leading to a sustainable
agriculture growth and poverty alleviation.
 Application of SWOT Analysis
Strengths

IDEI Low cost modular & divisible drip

technology

Competitive prices

Diverse product portfolio

high end products

Commercial & social agenda

 Application of SWOT Analysis
Weaknesses

Low brand awareness

Water source limitation

IDEI non pressure compensating laterals

Smaller hydro-zones

Limits area under cultivation

Application of SWOT Analysis

Opportunities
IDEI products for IP model

Premium drip products for Tunnel segment

RSPs water conservation and livelihood

projects

Rain guns for IP and retail

Government subsidy HEIS project

Working in untapped areas of Pakistan

Application of SWOT Analysis

Threats

Lack of drip technology awareness

High up-front capital cost

Undeveloped retail market

Cyclical nature of business

Crop rotation limitation

Slow adoption process

 PEST ANALYSIS
Pest analysis which tells
about the external
factors or macro
environmental
compatibility with the
firm. As its mention
earlier Pest is the
abbreviation of Political,
Economical, Social and
Technological.
Political Factors
 Pest analysis which political factors include government
regulations and legal issues and define both formal and
informal rules under which the firm must operate. Now a day
in Pakistan, there is political instability that cause serious
problem for the country because tax rate is increasing day by
day, and nation is suffering from the wrong policies and their
impacts.

 About the external factors or macro environmental

compatibility with the firm. As its mention earlier Pest is the
abbreviation of Political, Economical, Social and
Technological.
Political Factors
 As micro drip is working for the saving of water and
energy and enhancing the crop production so there is
no important drawback for micro drip from
government side . In fact government is appreciating
and providing subsidy to farmers for this purpose but
there is huge uncertainty in this subsidy.
Economic Factors.

 Factors include economic growth, interest rate, exchange

rate and the inflation rate. These factors have major
impacts on how businesses operate and make decisions.
For example, interest rates affect firm's cost of capital and
rate of investment so to what extent a business grows and
expands is depend on it.

 As micro drip is importing some of its system parts from

foreign countries so economically its threat for this
company but micro drip is continuously serving his
country by compromising on its margins to a great extend.
Social Factors
 Factors include the cultural aspects age distribution,
population growth rate, career attitudes and emphasis
on safety. Trends in social factors affect the demand for
a company's products and how that company operates.

 As in present days there is a great shortage of water in

our country so products of micro drip are highly
appreciated in all over the Pakistan which is also due
to unique products of this company
Social Factors
Its also honors for micro drip that it not only works for
revenue generation but developing market in flooded
areas of Pakistan with very low cost system that is
admirable.
Technological Factors
 Factors include technological aspects such as Research
and development activity, automation, technology
incentives and the rate of technological change.

 This water conservation technology is very efficient as

adopted by all progressive countries so technology is
highly acceptable for this country which has water
crises.
Technological Factors
 As this technology is new in Pakistan that’s why
customer awareness is needed that micro drip is doing
in all over the country by advertising and installing the
demonstration sites
Porter’s Five Forces
Micro Drip Pvt. Ltd
 Porter’s Theory
“Porter's five forces is a framework for the industry
analysis and business strategy development formed by
Michael E. Porter of Harvard Business School in 1979.
It draws upon Industrial Organization (IO) economics
to derive five forces that determine the competitive
intensity and therefore attractiveness of a market.
Attractiveness in this context refers to the overall
industry profitability”
Porter’s Forces Model
Potential new entrants In “MICRO DRIP”
It can be in the New Entrant category of Porter's 5
forces, Micro Drip has threat from 17 new partner
organizations of PPAF and other NGOs. This can bring
new potential and threat to Micro Drip. However, in
South they have broken ground with Indus Earth and
OSDI and have won a sizable
project with Indus Earth and a pilot project with OSDI.
In the North, they have successfully reached out to
RCDS and have won 4 rain gun projects. After successful
completion of their start up projects, they are confident
in winning more projects with these IP’s in the future.
Potential new entrants In “MICRO DRIP”
With current IP partners and new prospective
partners, MICRO DRIP is gaining access to the
markets and expanding its footprint. This is creating
the required awareness and lead to market creation
and ultimate move to retail sales so that it could be
more beneficial to the small farmers.
Bargaining Power of Buyers

Buyers, from the strong competition inside of the

market find themselves in a very favorable position.

Since competition is so strong between dealers and

farmers, farmer will often do research on a products
before making a purchase.
Bargaining Power of Buyers
The high quantity of dealer’s forces prices to be very
negotiable and the farmers often knows exactly what
the dealer paid for products.
Thus, farmers are in an enviable position: The market
supply is strong, competition between farmer and
dealer is very intense, and there is no set price.
Bargaining Power of Suppliers:
Micro Drip” suppliers have been known to be some of the
most dedicated suppliers in the industry. By virtue of the
Just-In-Time production concept pioneered by them, this
industry itself has seen a very positive relationship develop
between its suppliers and producers.

Suppliers are expected to make deliveries of quantity in

small quantities several times a day.

Micro Drip, by reducing its inventory, has been able to speed

up production costs, save money by not letting products un
Threats and Substitutes

There are more than 50 companies registered with MINFAL

Water Management Cell dealing in drip / rain gun
irrigation projects throughout the country.
Most of them saw the government subsidy program as a
lucrative opportunity and joined the bandwagon with some
prominent names of agriculture industry.
 The government subsidy was fixed @ Rs. 36,000/acre
irrespective of the cost and type of the system to a
maximum of 50 acres per farmer.
Industry Competition/Rivalry between
Competitors
There are more than 50 companies registered with MINFAL
Water Management Cell dealing in drip / rain gun irrigation
projects throughout the country.

 Most of them saw the government subsidy program as a

lucrative opportunity and joined the bandwagon with some
prominent names of agriculture industry.

The government subsidy was fixed @ Rs. 36,000/acre

irrespective of the cost and type of the system to a
maximum of 50 acres per farmer
Industry Competition/Rivalry between
Competitors
The government subsidy was fixed @ Rs. 36,000/acre
irrespective of the cost and type of the system to a
maximum of 50 acres per farmer.

The industry sales were totally subsidy dependent and no

effort was made by any company to invest in the retail
market, therefore a distributor network is conspicuous by
its absence. The following table highlights the competitor
activity during the last 3 years:
BALANCE SCORECARD
 Where Developed?
Harvard Business School
Dr. Robert Kaplan
Dr. David Norton
Utilized by industry
General Electric
Ford Motor Company
IBM
Walt Disney World
 What is it?
The BSC translates mission and strategy into objectives
and measures, organized into four different perspectives:
financial, customer, internal business process, and
learning and growth.
The BSC provides a framework, a language, to
communicate mission and strategy.
The four perspectives of the BSC permit a balance of ST
and LT objectives, between desired outcomes and
performance.
 Why Developed?
Financial Measures are no longer the only measure
responsible for success of a company.
Others include
Customer Satisfaction
Better Internal Process
Learning and Growth
All of these should work together (in Balance) for the
success of the company
All systems are part of a whole and every action taken
affects the sum of the parts
 Financial

Vision and Internal

Customer
Strategy Business
Process

Learning
and Growth
Balance Scorecard Philosophy, Vision & Mission

Top Bottom
Reflection
Forward Looking

Help Focusing

Integrative
 Vision  Mission
To increase agricultural
To upgrade our existing facilities,
productivity with efficient
systems and enhance in house irrigation systems leading to a
capabilities to meet the demands sustainable agriculture growth
of Pakistan’s agriculture sector in and poverty alleviation.
making it nation wide competitive
and modern.
 Balance score card of “Micro Drip”
Financial Perspective
1. Projects Profitability
Measures
2. Return on Capital
Employed in terms of
Customer Satisfaction &
Services Provided
3. Systems for Reliable
Customer Perspective Profit Forecast Internal Perspective
1. Customer Concept 1. R&D Capabilities
2. Customer Satisfaction 2. Measuring Success in
3. Low Priced Solutions terms of in house
4. Modernize the irrigation Production Capabilities.
system 3. Project Performance
5. Serve the small and low Index
income farmers Growth Perspective 4. Projects Closeout Cycle
6. Increase the agricultural 1. %age Revenue Measured on
productivity the Basis of Quality of Services
and Customer Satisfaction.
2. Ability to Adapt Changing
trends in Technology and
Culture.
3. Employees Skills and
Expertise.
4. Measuring Criteria for
Improvements.
5. Value added by Employees
 Application of Balance Scorecard
Customer Perspective
Objectives Measures Targets
o Customer Concept o Making Independent Entity o Innovation, Quality & Delivery
Based Evaluations
o Customer Satisfaction o Customer Satisfaction Index o Enhanced Customer Satisfaction

o Products o Low Priced Solutions o Awareness of drip irrigation and

develop BOP market.
o Market Share o Increase in Share o 20% Revenue from retail market

Financial Perspective
Objectives Measures Targets
o Projects o Profitability Measures o 80 % Success Rate of Execution

o Return on Capital Employed o Usability of Investment o PDCA Teams of Each Project

o Profit o Systems for Profit Forecast o Systems for Reliable Profit

Forecast
 Application of Balance Scorecard
Internal Perspective
Objectives Measures Targets
o Replication of Modern Carriages
o Research & Development o Inhouse Capabilities
& Wagons
o Project Performance Index o PDCA Cycle o 100% Forecasted Results
o Forecasted Task Time
o Projects Closeout o Time Consumed

Growth Perspective
Objectives Measures Targets
o Indigenization and Services to o 30 % of Budgetary Requirements
o %age Revenue
small farmers
o Accepting Change o Ability to Adapt Changing Trends o Gap Minimization in Processes
in Technology and Culture. and Practices

o Improvements. o Measuring Criteria o Continuous Improvement

o Employees Trainings o Skill Measuring Charts o Level of Value Addition

Any Question