Strategic Analysis on Advanced Chemical Industries (ACI) Limited
KPMG Rahman Rahman Huq; The Institute of Chartered Accountants of Bangladesh (ICAB)
June 10, 2012
The first part of the report is mainly a general discussion about the ACI Limited, including – a general overview, organizational structure, brief discussion of the units and subsidiaries, product lines, mission and vision of the organization, business environment analysis through PEST and SWOT analysis of the organization. The second and the core analytical part of the paper includes strategic analysis of the ACI Limited in four area, including – management structure, financial analysis, marketing analysis and distribution analysis. These analyses are done by using a wide range of tools of strategic analysis. Management structure of the ACI Limited is analyzed according to the ‘Mintzberg theory of organizational structure’. Whole management structure is divided into five core blocks according to the theory and so their contribution to the organization. Financial analysis is mainly based on three tools, including - break-even point (BEP) analysis, margin of safety analysis and sensitivity analysis. As we do not have all the information required to make these analysis accurate, we based our analysis on some assumption. These are – 1. All the cost of goods sold is assumed to be variable. 2. Expenses other than cost of goods sold are assumed to be fixed. Marketing and product analysis of the ACI Limited also based on the three tools, including – stakeholders mapping; power and interest analysis, BCG growth share matrix analysis and Ansoff model analysis. Stakeholders mapping analysis is there to find out the key players for the organization which have a very good impact in formulating marketing and distribution strategy. BCG growth matrix indentified the current market position of each product and indicates for whom the management should concentrate more. Ansoff model divided the products into four major categories and prescribed marketing strategies for each. Distribution system analysis are based on the distribution models which only demonstrate the distribution channel used to reach the product form producer to end user or consumer. All of these analyses find out some core advantage of the ACI Limited and some lacking which are summarized at the end of the analysis along with some recommendations.
Number of Pages in PDF File: 38
Keywords: ACI LImited, strategic analysisworking papers series
Date posted: June 13, 2012
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