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XYZ Co: Alkyd Resin Production in Egypt

XYZ Co is an Egyptian company established in 1998 that produces alkyd resin for paint. Alkyd resin acts as a binder that holds paint ingredients together and provides durability. While XYZ had sales of EGP 15 million in 2014 and was growing, its sales remained stagnant in 2015 as competitors gained market share. XYZ's vision is to increase customer satisfaction, enter the African market, maintain low costs, and ensure quality products. Its strategic objectives include providing low-cost, high-quality products and services to be competitive and increase customer satisfaction, growing its local market share, and entering the African market to utilize excess capacity.

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Sajid Sarwar
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5 views2 pages

XYZ Co: Alkyd Resin Production in Egypt

XYZ Co is an Egyptian company established in 1998 that produces alkyd resin for paint. Alkyd resin acts as a binder that holds paint ingredients together and provides durability. While XYZ had sales of EGP 15 million in 2014 and was growing, its sales remained stagnant in 2015 as competitors gained market share. XYZ's vision is to increase customer satisfaction, enter the African market, maintain low costs, and ensure quality products. Its strategic objectives include providing low-cost, high-quality products and services to be competitive and increase customer satisfaction, growing its local market share, and entering the African market to utilize excess capacity.

Uploaded by

Sajid Sarwar
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Introduction

XYZ Co is an Egypt-based company commenced commercial operation in the year 1998, XYZ
Company located in Borg El Arab industrial zone.

Establishment Year 1998

Company Location
Borg El Arab Industrial zone, Egypt

2014 total Sales EGP 15 million

Major Shareholders
Mainly Three (3) Shareholders

The company engaged in the production of Alkyd resin for the painting industry.

It binds or glues ingredients (pigments and additives) of paint together and provides durability &
resistance properties to the paint. Binders (resins) come in several forms such as Latex, Alkyd,
Epoxy and Polyurethane in accordance to its industrial usage. In general, modern paint is a
complex mixture of components that comprises binder (resin), additives, pigments and solvents.
Binders (resins) are considered as a crucial component that is present in all types of paints. In
alkyd paint, the binder is a synthetic resin, which is called an alkyd resin. Alkyd resin is used in
varnish, lacquer, sealer, etc.

However, in 2015, the sales numbers were not worthy. Sales remained almost constant (and
sometimes decline) for the fifth straight month while the market is still expanding (local and
regional). On the other hand, competitors are increasingly taking market share on the company
expense.

The total sales for XYZ were around 15 Million Egyptian pounds during year 2014 with current
growth rate standing at 15% over 2013. The company is operating under a strategy that aims to
minimize the overall cost of operation (cost leadership).
Corporate Vision:
The XYZ Corporate Vision statements focuses on the following key areas:

 To increase customer satisfaction level.


 To enter into African Market
 Cost Leadership.
 ensuring a quality product.

A clear corporate vision ensures that the company can work towards meeting its goals thereby
increasing its sales by increasing the customer satisfaction level by providing quality product
meeting the customer expected timeline.

Strategic objectives

Strategic objectives adhere to the company’s vision statement, XYZ key


Strategic objectives are:
 be competitive by providing low cost product without compromising on quality and delivery.
 Enhance customer satisfaction level by providing high quality products and services such as
delivery, customization, customer feedback etc.
 Target Local market growth by regaining its market share and expand year by year.
 Enter into African market that will utilize its excess capacity and optimize fixed cost.

Passion

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