GLASGOW CALEDONIAN UNIVERSITY

SCHOOL OF ENGINEERING AND COMPUTING

COURSE WORK ON STRATEGY AND

INNOVATION

VICTOR UZODINMA
Maintenance Management (MSc)
MATRICULATION NO: S0912456

(MODULE NO: MMN212602)

LECTURED BY
PROF David Edgar
Dr Kevin Grant

TABLE OF CONTENT

1
10 INTRODUCTION-------------------------------------------------------------------------------4

20 BACKGROUND---------------------------------------------------------------------------------4

30 STRATEGIC POSITION OF PRESCO NIGERIA PLC-----------------------------------4

4.0 CULTURES----------------------------------------------------------------------------------------7

5.0 MARKET PRODUCTS--------------------------------------------------------------------------7

6.0 BALANCE OF THE ORGANISATION------------------------------------------------------7

7.0 VALUE CHAIN ANALYSIS -----------------------------------------------------------------11

8.0 PRIMARY ACTIVITIES-----------------------------------------------------------------------12

8.1 INBOUND LOGISTIC---------------------------------------------------------------------12

8.2 OPERTIONS---------------------------------------------------------------------------------12

8.3 OUTBOUND LOGISTIC------------------------------------------------------------------13

8.4 MARKETING AND SALES---------------------------------------------------------------14

8.5 SERVICE---------------------------------------------------------------------------------------15

9.0 SUPPORT ACTIVITIES-------------------------------------------------------------------------15

9.1 PROCUREMENT-------------------------------------------------------------------------------15

9.2 TECHNOLOGY DEVELOPMENT ----------------------------------------------------------16

9.3 HUMAN RESOURCES AND MANAGEMENT---------------------------------------------16

9.4 INFRASTRUCTURE ------------------------------------------------------------------------------16

10.0 COMPETENCES OF PRESCO PLC----------------------------------------------------------17

11.0 CORE COMPETENCES FOR PRESCO PLC---------------------------------------------17

2
12.0 S W O T ANALYSIS FOR PRSCO PLC---------------------------------------------------17

12.1 STRENGHT-------------------------------------------------------------------------------------18

12.2 WEAKNESSES---------------------------------------------------------------------------------18

12.3 OPORTUNITIES-------------------------------------------------------------------------------18

12.4 THREATS---------------------------------------------------------------------------------------19

13.0 PESTL ANALYSIS FOR PRESCO---------------------------------------------------------20

14.0 PORTERS FIVE FORCES--------------------------------------------------------------------21

15.0 EFFECT OF FIVE FORCES ON PRESCO PLC------------------------------------------22

15.1 THE THREAT OF NEW ENTRANTS-----------------------------------------------------22

15.2 THE BARGAINING POWER OF BUYERS----------------------------------------------22

15.3 THE BARGAINING POWER OF SUPPLIERS------------------------------------------22

15.4 POTENTIAL DEVELOPMENT OF SUBSTITUTE PRODUCT ---------------------23

15.5 RIVALRY AMONG COMPETING FIRMS----------------------------------------------23

16.0 STRATEGIC DIRECTION FOR PRESCO PLC-----------------------------------------23

17.0 IMPACT OF TECHNOLOGY ON PRESCO PLC---------------------------------------24

18.0 STRATEGY RECOMMENDATION------------------------------------------------------25

3
 1.0 INTRODUCTION

This report analyses the strategic position of PRESCO PLC in Nigeria. PRESCO is a fully

integrated agro- industrial establishment that specializes in the cultivation of oil palm,

extraction of palm oil from palm fruit, refining and fractionation of crude palm oil into

finished products. This report presents the strategic position of the company, the internal and

the external environment, the impact of technology and the strategy to be adopted for

efficiency in the palm oil production.

2.0 BACKGROUND

PRESCO is a public limited liability company incorporated on September 24, 1991 under

Nigerian law. Its corporate head office is at the company's Obaretin Estate near Benin City.

PRESCO is a subsidiary of Siat s.a., a Belgian agro-industrial company specialized in

industrial as well as smallholder plantations of tree crops, mainly oil palm and rubber, and

allied processing industries such as palm oil mills, palm oil refining / fractionation, soap

works and crumb rubber factories. Siat diversified its activities into cattle ranching. Siat has

as its shareholders agronomists and economists with experience in the development of agro-

industrial ventures in the tropics.

3.0 STRATEGIC POSITION OF PRESCO NIGERIA PLC

Presco is one of the largest employers in Edo and Delta states, with a total of about 1,800

employees. PRESCO today consist of oil palm plantation of 10,384 hectares of which 9,161

hectares are mature, a palm oil mill with a capacity of 24 tonnes fresh fruit bunches per

hour ,a refinery/fractionation plant with a capacity of 60 tonnes per day. In a recently

published list of Nigeria’s Top 100 Companies, PRESCO is shown as the 67th biggest

company by turnover in the country. The listing, published by the leading business magazine

4
Bottom Line, shows that PRESCO is not only the market leader in Nigeria palm oil industry

but also the leading agricultural enterprise.

Indirectly, Presco’s operations positively impact on the livelihoods of many more people

through transport contracts, construction contracts, fruit purchases from farmers, as well as

by the company being a large consumer of goods and services

VISION

To be the Nigerian market leader for specialty fats and oils

MISSION

To satisfy needs of our customer in the food industry with respect of quality and quantity

To increase the planted area according to RSPO rules

To expand the process capacity according to the plantation expansion

To operate and act as a socially responsible corporate body

GOALS

To improve key operational parameters for better industrial efficiency.

To increase the processing capacity of the palm oil mill to cope with the increasing

production of fresh fruit bunches.

To further expand the refinery and fractionation capacity to be able to process the increasing

production of palm oil.

Fig 1, STAKE HOLDER MAPPING FOR PRESCO PLC

LEVEL OF INTEREST

5
 LOW HIGH

LABOUR UNION STAFF

LOCAL FARMERS LOCAL COMMUNITIES

INDUSTRY TRADE GROUPS CUSTOMERS

NIGERIAN GOVERNMENT HEALTH AND SAFETY EXEC

EDO STATE GOVERNMENT S.I.A.T GROUP

LOCAL GOVERNMENT EXECUTIVE TEAM

INVESTORS

LOW

POWER

6
HIGH

4.0 CULTURES

Cultures are the values and practices shared by the members of a group. The company culture

therefore, is the shared values and practices of the company's employees.

PRESCO is guided by strong cultures of health and safety, customer focus, mission clarity,

employee commitment, fully empowering its employees through training ,ensuring high

integrity of workplace, entrusting strong relationship between staff and management as well

as the Host community, highly effective leadership, ensuring effective system and process,

encouraging good performance based on compensation and reward programmes, commitment

to learning and skill development, emphasis on recruiting and retaining outstanding

employees, high degree of adaptability and compatibility. As well as maximum support for

innovation.

5.0 MARKET PRODUCTS

5.1CORE

The core product of PRESCO PLC is crude palm oil.

5.2 SUPPORT

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The support products for PRESCO PLC are refined bleached and deodorised oil, crude palm

kernel oil, palm olein, palm stearin etc

6.0 BALANCE OF THE ORGANISATION

Presco has always striven to diversify its product to achieve its organisational balance, presco

achieved this by maximising the potential of its employee, through empowerment, strong

motivational leadership, skill acquisition and engagement in other related products because of

its belief that focus on a single aspect of business or organisation may lead to short term gain.

Today, Presco has diversified its production from their core product which is crude into the

production of refined bleached and deodorized oil (RBDO) , palm fatty acid distillate(PFAD),

palm Olein, palm stearin, crude palm kernel oil, refined palm kernel oil, and soap production

to achieve its organisational balance

Table 1.OPERATIONAL PERFOMANCE DATA SHEET OF PRESCO PLC

Operations Data 2003- 2008

2008 2007 2005 2004 2003

2006

Mature area (ha) 7 786 7 502 7,215 7,045 6,984 6,632

1,594
Immature area (ha) 1 557 1 601 1,323 1,065 1,074

Total area (ha) 9 348 9 103 8,538 8,110 8,058 8,226

Estate FFB (tonnes) 77 475 65 788 67,118 70,676 72,669 62,837

Outgrowers FFB (tonnes) 4 116 1 884 - 11,378 13,667 12,124

Total FFB (tonnes) 81 591 67 673 67,118 82,054 86,336 74,961

CPO produced (tonnes) 15 950 13 206 13,965 14,783 15,185 13,467

CPKO produced (tonnes) 780 828 1,067 1,361 1,234 1,072

Sales RBDO (tonnes) 7 675 3 431 5,394 4,187 5,658 1,733

Sales olein (tonnes) 5 173 4 725 4,240 5,966 4,903 6,804

Sales stearin (tonnes) 1 560 2 172 1,484 3,031 2,183 2929

ADAPTED FROM PRESCO PLC WEBSITE

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Fig 2.BCG MATRIX FOR PRESCO PLC PRODUCTS

REFINED BLEACHED AND PALM STEARIN

DEODORIZED OIL

STAR
??????????????

CRUDE PALM OIL CRUDE PALM KERNEL OIL

DOG
£
CASH COW

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STARS :Stars are business unit with high relative market share and high industrial growth

rate. There is need for substantial investment to maintain or strengthen their dominant

positions. From the above illustration using the BCG matrix to determine what priorities to

be given to the product of presco plc, the refined bleached and deodorised oil (RBDO) is

chosen to be given a maximum priority as the star product of the presco oil plc, following the

operational performance data sheet adapted from the presco plc in fig 1, the refined bleached

and deodorised oil has a high market share and there is a rapid growth in the sales of this

product at present. According to the operational performance data sheet adapted from the

presco plc in fig 1,the sales for the refined bleached and deodorised oil rose from 3431

tonnes in 2007 to 7675 tonnes in 2008 indicating a rapid growth in the industry. Therefore

there is need for presco plc to substantially invest in this product to strengthen and maintain

their dominant position.

CASH COWS : Cash cows are the business unit with high relative market share but compete

in a low growth industry. From the above illustration using the BCG matrix ,the crude palm

oil is the CASH COW of presco plc. The crude palm oil generate money in excess of their

needs, following the operational performance data sheet adapted from the presco plc in fig

1,it is observed that the growth rate in the industry is no longer tremendous and it is also

observed that the market share has been long for a very long time indicating a poor growth in

the industry. Therefore there is need for Presco plc to manage to maintain their strong

position in the business as long as possible.

DOGS : Dogs are the business unit with a relative low market share and as well compete in a

slow or no market growth industry. From the above illustration using the BCG

matrix,thecrude palm kernel oil(CPKO) is the dog of presco plc. The crude palm kernel oil

has a relative low market share and as well compete in slow growth industry, and looking at

the number of tonnes of palm kernel produced from the operational performance data sheet

10
of presco plc in fig 1,it is observed that the palm kernel oil offers few growth prospects and

may require significant investment of cash just to maintain its position. Therefore the

strategic recommendation for palm kernel oil production in presco plc is for presco plc to

divest the production of palm kernel oil and use any excess cash flow to support other

business unit like the refined bleached and deodorised oil RBDO.

QUESTION MARK :This are business unit with low relative market share but with a high

industry growth rate, the question mark are low in competitive strength, but they are in

industry where there is a lot of potential. From the above illustration with the BCG matrix,

the palm stearin is the question mark for presco plc. Because of the present use of palm

stearin in the making of dough for biscuit, snacks, crisps, chocolate and confectionary

products, the palm stearin has become attractive to the industry. Therefore the strategic

recommendation is that cash should be infused in palm stearin production since it is

becoming potential in the market in attempt to turn it into market leader.

7.0 VALUE CHAIN ANALYSIS

The value chain is a systematic way of examining all of the organisation’s functional

activities and how well they create customer value.

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 Fig 3 VA

FIRM IN
E
IV
C
TA
R
PO
SU

8.0 PRIMARY ACTIVITIES

8.1 INBOUND LOGISTIC : The inbound logistics for presco oil plc includes the activities

that are concerned with receiving ( raw materials like palm fruit bunches), transportation,

warehousing ,excellent material and inventory control system, packaging materials like

plastic bottles ,

ADVANTAGE .
HUM AN
HOW INBOUND LOGISTIC COULD BE USED TO GAINED COMPETITIVE

12
The inbound logistic of presco plc which includes the transportation of raw materials to the

company base can gain competitive advantage by ensuring that high quality palm fruit

bunches are being delivered to the industry as well as proper warehousing of this palm fruit to

avoid decay before being processed in order to ensure a better quality of finished

product(crude palm oil). There is also need for the use of “Navision” software for excellent

material and inventory control system.

Competitive advantage can also be gained if the company acquires more delivery truck of

their own for their transportation of palm fruit bunches and some other raw materials to the

company to improve efficiency in the transportation cost. Competitive advantage could also

be gained if the company could posses their own machine to make plastic bottles for the

crude palm oil thereby eliminating their inbound logistic for plastic bottle to raw materials

for plastic bottle production like priforms which has a lesser volume.

8.2 OPERTIONS

Operation involves the transforming of various inputs into finished product. This involves the

transformation of fresh palm fruit into crude palm oil, this process involves sterilising of the

palm fruit bunches, separation of the palm fruit from the bunches using the bunch hopper,

this is followed by digesting of the loose fruit in a digester, and finally to the screw press

where the oil is pressed out of the fruits. Furthermore there are more other refining

operational processes for other products

HOW OPERATIONS COULD BE USED TO GAIN COMPETITIVE ADVANTAGE FOR

PRESCO PLC

Competitive advantage could be gained by creating environmentally friendly manufacturing

reuse and recycling principle by ensuring that all the organic waste from the mill is used in

the plantation as a natural soil enhancer and helps to minimise the use of fertiliser.

13
Competitive advantage could be gained in operations by ensuring the use of efficient plant

operations to minimise cost, this could be achieved by revamping outdated existing

equipment with modern equipment that will process larger number of tons of palm fruit in an

hour, thereby improving the processing capacity. The efficiency in the plant layout and work

flow design of the oil palm mill will improve the production rate of the crude palm oil.

Installing appropriate production control system to control quality of palm oil produced and

reduce cost of production and as well enhance reliability and safety of the production

systems. There is also need to ensure the use of appropriate level of automation to ensure the

overall system performance.

8.3 OUTBOUND LOGISTIC

The activities of outbound logistics are associated with distributing the product or services to

buyers or customers. They include finished goods, warehousing, material handling, delivery

vehicle operation, order processing and scheduling.

HOW OUTBOUND LOGISTIC COULD BE USED TO GAIN COMPETITIVE

ADVANTAGE FOR PRESCO PLC

Presco plc could gain competitive advantage for free delivery of good to areas that are not

more than 7 miles in distance.

Competitive advantage could be gained in outbound logistic by presco plc by the installation

of electronic interchange system which will allow customers to electronically inform presco

plc of their product needs and their product needs transported as soon as possible. Ensuring

effective shipping process like, trucks to provide quick delivery and minimise damages.

Transportation of palm oil in large lot sizes to minimise transportation cost .implementing

efficient finished good warehousing to reduce damages will gain competitive advantage for

the company.

14
8.4 MARKETING AND SALES

The marketing and sales activities are associated with purchases of products and services by

end users and inducements used to get them to make purchases. These inducements includes

advertising, promotion, sales force, quoting, channel selection, channel relation, and pricing.

HOW MARKETING AND SALES COULD BE USED TO GAIN COMPETITIVE

ADVANTAGE PRESCO PLC.

Advertising of various presco palm oil products on television, radio, handbills, proper

training of marketing and sales personnel, adopting effective pricing strategy ,selection of

most appropriate distribution channels, engaging innovative approaches to promotion and

advertising will gain competitive advantage for presco plc. Competitive advantage could as

well be gained if presco plc takes on a television programme and sponsor it in which

intermittently their product will be advertised during the programme.

8.5 SERVICE

This primary activity includes all activities associated with providing service to enhance or

maintain the value of the product, such as installation, repair, training, parts supply, and

product adjustment.

HOW SERVICE COULD BE USED TO GAIN COMPETITIVE ADVANTAGE FOR

PRESCO PLC.

competitive advantage could be gained in service by presco plc by accepting every damaged

good from customer and changing it with a new good. Competitive advantage could as well

be gained if customers are given a new product at a cheaper rate when they return the cans or

15
tins of their used presco plc for recycling. Competitive advantage could be gained as well if

presco plc produces a special type of palm oil with lesser fat for consumers that are allergic to

the high level of fat content in crude palm oil.

9.0 SUPPORT ACTIVITIES

9.1 PROCUREMENT

Procurement is the process for acquiring and purchasing goods and materials of appropriate

quality for all areas of the business. Procurement in presco plc can be involved in acquiring

of machines and equipment for use .Presco plc could gain competitive advantage by

negotiating with the manufacturers of those equipment used in palm oil processing industries

that are more efficient in production and processing and if efficient machines are being

delivered, there could be reduction in price of products.

9.2 TECHNOLOGY DEVELOPMENT

This is the area of value chain that involves the use of technology to improve products,

service and their delivery to customers. Presco plc could gain competitive advantage by

improving their technology for palm fruit processing by negotiating with manufacturers to

produce a new processing equipment that will incorporate sterilising, bunch hopping,

digesting of palm fruit before being sent to the screw press for the oil extraction. This could

eliminate the time it takes to convey the processed palm fruit from each of the stages to other

stages. Presco can as well gain competitive advantage in improving their sales by operating

24hr online sales whereby their goods can be assessed and bought online anytime of the day.

This will reduce staffing cost and increase convenience for many customers.

16
9.3 HUMAN RESOURCES AND MANAGEMENT

Human resources is concerned with recruiting, managing, training, developing, and

rewarding staff to help the organisation achieve competitive advantage. Presco plc could gain

competitive advantage by proper training of their staff ,developing and rewarding staff

through incentives quarterly, providing staff with some of their products free of charge may

be annually may be during Christmas celebration. Competitive advantage could as well be

gained when the right people are recruited to do the job, this could be achieved by inviting

guest managers from other related firms during interviews and recruitment to avoid

favouritism.

9.4 INFRASTRUCTURE

Firm infrastructure includes structure ,culture and number of activities like planning, finance,

legal, government affairs, quality management and information systems. Presco can gain

competitive advantage with their infrastructure by ensuring the protection of its intellectual

through patents, trademarks and copyrights, acquiring a flexible culture in order operate

efficiently even in a turbulent environment.

10.0 COMPETENCES OF PRESCO PLC

competences can be defined as the attribute a firm require in order to be able to compete in

the market place. Presco plc can gain competency by developing multimedia campaign,

working with farm leaders, organise training for farmers at village level, develop a unit to

respond to farmer inquiries, and as well develop their ability to use statistical tool in

evaluating programmes.

11.0 CORE COMPETENCES FOR PRESCO PLC

Core competence are the skill and the abilities developed within an organisation with whic

competitive advantage can be achieved. Core competence results from the integration and

17
harmonisation of strategic business unit competencies. For example Toyota cars achieve core

competence by being the first automobile company to produce hybrid cars. Presco plc can

gain core competence by engaging into production of biscuits, chocolate, ice cream,

mayonnaise margarine, since some of their products like the refined bleached and deodorised

oil RBDO, palm olein, crude palm kernel oil CPKO are used in the production of these

products and Presco will be the first palm oil processing company to go into the production of

these products..

12.0 S W O T ANALYSIS FOR PRSCO PLC

Swot analysis can be defined as a situation analysis in which internal strength and

weaknesses of an organisation and external opportunities and threats faced by it are closely

examined to chart a strategy.

12.1 STRENGHT

Presco plc is considered as the largest palm oil processing industry in Nigeria.Following the

recent published list of Nigeria’s top 100 companies, Presco is shown as the 67th biggest

company by turnover in Nigeria. The listing published by the leading business magazine

Bottom line shows that Presco is not only the market leader in the Nigerian vegetable oil

industry but also the leading agriculture enterprise. Presco installed new 30 tonnes of steam

per hour boiler which provides enough steam to drive their steam turbine. Presco is the

largest employer of labour in Edo state and on March 2005 presented a bus to the Oba of

Benin for use in the Palace. Presco has designed and built a model primary school for the

children of agbomoba and neighbouring villages in Ikpobha-Okha local government area.

12.2 WEAKNESSES

18
Presco palm oil processing company is vulnerable to uncontrollable affective factors such as

changes in weather affect presco oil plantation. The lift of ban by Nigerian government on

crude palm oil importation allowed a room for a more competitive environment.

12.3 OPORTUNITIES

The support of Nigerian government and Edo state government and agencies to the industry

is an opportunity for uncovering useful research findings that would promote further growth.

Due to increase in the sales of refined bleached deodorised oil in Nigeria due to its reduced

fat content and use in soap production, Presco has planned to acquire a new plant for massive

production of the product to meet the demand in the near future and thereby strengthens its

sales network.

12.4 THREATS

Following the Ban lift on the importation of crude palm oil in Nigeria, a lot investors has

engaged in the importation of crude palm oil from Malaysia and Indonesia, posing a threat to

the sales of presco oil products. As with other palm oil processing company in Nigeria presco

faces tremendous competitive rivalry in the palm oil market, competition is increasing daily

with new entrants into the market.

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Table 2 13.0 PESTL ANALYSIS FOR PRESCO

Political & legal Economic Social Technological

Areas of change Industrial laws, Interest rate, Life style Government

changes and spending on

Foreign trade, Inflation,
level of research,
Environmental Disposable
education
New discoveries
protection laws, income,
and
Taxation policy,
development

Employment &

government

stability.

20
Potential effect Unfavourable This will This could lead Government

on company change of increase the cost to increased spending on

political and of production of demand or research &

legal factors presco products reduction in development

could cause set and this will as demand will lead to

back in well increase the ,depending on

discovery of
organisational sales price of the lifestyle
new varieties &
decision. their products. change
reduction in

production cost

Fig 4 14.0 PORTERS FIVE FORCES

21
The porters five forces is used as an analytical tool for examining the competitive

environment. It describes the competitive environment in terms of five basic competitive

forces which are the threat of new entrants, the bargaining power of buyers, the bargaining

power of suppliers, the threat of substitute product and services, and the intensity of rivalry in

an industry.

15.0 EFFECT OF FIVE FORCES ON PRESCO PLC

15.1 THE THREAT OF NEW ENTRANTS

22
There is no much threat of new entrants in the palm oil processing industry in Nigeria

because the palm oil processing industry is a long term business that takes a long time before

benefit is being realised. The palm oil processing industry involves the growing of palm fruit

and allow for about 7 or 8 years for maturity, therefore because of the long term nature of the

business and the enormous capital involved in the procurement of equipment for the mill, the

threat of new entrant into the business is reduced.

15.2 THE BARGAINING POWER OF BUYERS

When customers are large or buy in volume, their bargaining power represents a major force

affecting the intensity of competition in an industry. The buyers of presco plc products will

gain increasing bargaining power which will affect presco plc adversely if they can

inexpensively switch to competing brands or substitutes, due to the ban lift for the

importation of crude palm oil in Nigeria, the buyers are gaining increasing bargaining power

and this has affected Presco plc adversely by reducing the prices of their product in order to

remain relevant in the market.

15.3 THE BARGAINING POWER OF SUPPLIERS

The bargaining power of suppliers affects the competition in an industry,especially when

there is a large number of suppliers and when there are only a few good substitute raw

materials. Because Presco plc are the owners of 85% of their raw materials which is majorly

palm fruit which are harvested from their palm plantations across Nigerian, the bargaining

power of suppliers has but a little effect on presco plc as only 15% of palm fruit are being

supplied from local farmers.

15.4 POTENTIAL DEVELOPMENT OF SUBSTITUTE PRODUCT

23
Presco plc major produce is crude palm oil, and other support products are refined bleached

and deodorised oil, palm stearin, crude palm kernel oil. Though some of their products could

be substituted with groundnut oil and olive oil as well as sun flower oil, but the main produce

of presco plc which is crude palm oil has no substitute now in the Nigerian market, therefore

the threat of substitute product is brought to the barest minimum.

15.5 RIVALRY AMONG COMPETING FIRMS

Rivalry among competing firms is usually the most powerful of the five competitive forces.

The strategies pursued by one firm can be successful only to the extent that they provide

competitive advantage over the strategy pursued by rival firms. Presco has redefined its

strategy by diversifying their products, enhancing quality of their products, extending

warranties for their products, and increased advertising of their products to compete

effectively with its rival.

16.0 STRATEGIC DIRECTION FOR PRESCO PLC

The strategic direction for presco plc is to ensure that the managers throughout the

organisation are striving for common goals and objectives. This will be achieved by

specifying desired results which makes it easier to move forward. On all employees

knowledge of what the firm is striving to achieve, they will surely work towards achieving it.

Presco plc should as well seek sponsorship from Nigerian government for research and

development to identify new varieties of palm fruit that has a better yield.

17.0 IMPACT OF TECHNOLOGY ON PRESCO STRATEGIC POSITION

Technology has impacted positively on Presco plc enabling them to increase their milling

capacity to 48 tonnes per hour this year and looking forward to increase its refining capacity

to 100 ton per day in 2011.the new installed 30 tons per hour boiler at Presco plc have saved

24
enormous money for Presco plc on the cost of running diesel generator as the steam turbine

generates a sufficient steam to be able to drive the steam turbine of 2.5 MW.

18.0 STRATEGY RECOMMENDATION

25
CONCLUSION

26
With regard to the findings from the strategic analysis of Presco plc ,it is observed that

technology has impacted positively in the growth of the company.it is also desired that Presco

plc should consolidate maket penetration on their existing products with an existing market

and as well diversify distribution for their new product with new market.

27
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Claire Cappon.(2008) Understanding strategic management ,Edinburgh: Pearson Education

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Fred R, David.(2009) Strategic management concept and cases, twelfth edition. Pearson

education limited.

Gregory G, Dess and G.T, Lumpkin.(2004) Strategic management text and cases,

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Mansour Javidan ,Core competence,what does it mean in practice available on

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Mary Coulter. (2002) Strategic management in action, second edition, New Jersey: Prentice

Hall.

Reh John,f .(2009) company culture, what is it and how to change it available on

http://management.about.com/cs/generalmanagement/a/companyculture.htm assessed on the

24th of October 2010.

Stakeholders definition, types and example and stakeholder mapping.(2010) available on

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The Ninth Malaysian Plan and Agriculture Extension Officer Competency available on

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the 22nd of October.

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