Strategic Planning At

Local Companies
Prepared by
Ahmed Rashad
Ghada Gamal
Kholoud Hossam
Nesreen Gawish
Ola Sadek
Yosra Assaker

Introduction
There is no single best practice for how to do successful
strategic planning.

The timing and process will differ depending on industry,
market pressures, and the size and culture of the business.

Data for the following presentation was collected from the
discussions with planning manager for EGAS company and
the ex-quality manger of RAMEDA company in addition to
literature survey for the two companies.
Egyptian natural gas holding
company (EGAS)
It is a public sector Company that represents the governmental
authority in dealing with all natural gas activities in Egypt.

EGAS is engaged in a wide range of activities, including :
1. Upstream : Exploration, Drilling and Production of natural gas.
2. Downstream : Processing, Transmission, Distribution of natural
gas in the domestic market and liquefied natural gas.




Vision

Develop natural gas business in Egypt to be one of the key natural
gas players in the region and worldwide.



Mission

Operate with integrity to improve HSE performance and increase the staff
& contractors awareness.
Maintain a strategy of innovation and growth.
Continue issuing Bid Round, signing Concession Agreements and applying
applications of state of art technology in all Exploration processes.
Increase natural gas proven reserves to meet all obligations that fulfill
local market demand and export commitments.
Increase Annual Production to manage Supply Vs. Demand requirements.
Create Infrastructure and optimize Facilities Utilization.
Project Management aiming cost optimization and effective schedule.
Maximize applying the Value Added Projects.
Establishing new specialized companies in the area of Drilling, Engineering
& Marine vessels.
Expand Egyptian Natural Gas Grid to meet the targeted projects and
develop new communities

Who participates in the strategic
planning process
Mission, vision and strategy formulation is done by the
board of directors , which is formed of nominated
experts in the field of oil and gas, including the chairman
of the company and some of the vice chairmen , and the
chairman of relevant authorities ; example , the
chairman of Egyptian general petroleum corporation ,
Ganoub el wadi holding company, representative of
ministry of finance ,etc.

Strategy formulation process
The strategic planning starts by collecting data from each
department (which is collected from different subsidiary
companies), including capacities of work in each sector,
priorities according to urgent opportunities /threats, and
several different plans to respond to them.
Then the proposed plans are merged together (some
approved, rejected or rescheduled) according to compliance
with government priorities / policies, and available resources
(funding/availability of gas / security requirements / social
aspects/etc.) then general objectives are derived.
Note : Although the corporate is an independent company, yet it is
considered as a business unit in the Ministry of petroleum which is
a part of the whole Government .


A strategy is formulated to meet such objectives.
Discussions then take place between the board and the top
management of different activities in the company to perform
further planning (detailed plans of each business unit).

Strategy formulation process
Business units &
Subsidiary companies
Top
management
BOD
External Factors:
Opp. / threats

Ex.: Gov. policies/
security / Funds/
international
relations/ political
factors
Internal Factors:
Strengths/ weaknesses

Ex.: Authority
/Budget/ HR
capabilities/
Technology /working
Capacity
Planning
Department
Benefits of the current process of
strategic planning
The presence of a strategic plan lead to the synchronization of
efforts, collaboration of all business units and an optimum
resource allocation which served the achievement of the
companys strategic objectives, example:
Gas connection to households and factories ; achieved around
650 000 household in the year 2013/2014.
As a strategic objective, all the departments had this project as a
priority , financial resources were provided, no. of calibers
(engineers and technicians) were increased, legal regulations
were made more flexible in practice , top management were
involved many times to facilitate any emerging obstacles
instantly.
Analysis and comments
1- Several stakeholders are not represented in the strategy formulation
process:
Customers (local / foreign).
Suppliers .
Partners.
Community (to consider : safety / environment / employment
concerns).

2- the strategy of the corporate is influenced by the government whole
strategy , as it is considered a business unit of the government.

3- the framework of the strategy formulation process is not firmly
organized ; ex. scheduled reviewing, documentation of findings and
discussions, criteria of experts to contribute ..etc.
Analysis and comments
4- external and internal assessment is not performed in a
written, documented way and it is left for the board members
assessment (as they are considered to be experts in their field),
this sometimes result in:
Effect of perception of the experts involved can hide some
facts.
Missing the recorded documentation of the brain storming
sessions , that can help in future evaluation of the strategy;
ex: who were consulted, what was their thoughts ,..etc.
The absence of SWOT analysis can drop some important
factors that should be taken into consideration , or can
distort the relative weight given to each factor.

Rameda pharmaceuticals

Rameda is a modern pharmaceutical company, manufacturing
and marketing a wide range of high quality pharmaceutical
products, based on its own development as well as
cooperation with multinational companies.
Vision
To become the most valuable emerging pharmaceutical
company in Egypt.

Mission
To provide our customers quality health care solutions in a cost
effective manner by developing products and services that
satisfy their health requirements.

Who participates in the strategic
planning process
Mission, vision and strategy formulation is done by the board
of directors lead by the chairman ( which is different from the
CEO), each division in the company is represented in the board
(functional managers) and participates in establishing the
framework for the best way each division will support
Ramedas Strategy.
Strategy formulation process
The company annually performs wide assessment involves the
following areas:
1-Current internal factors affecting the company.
2-Performance evaluation.
3-Quarterly financial review.
4-perform external scan: social, Competition, Economic,
Political, Technology, Industry and customer.

This assessment is performed through Rameda Academy which
utilizes the expertise of both in-house and outsourced highly
specialized industry professionals and instructors.




Board of directors establishes a ten year vision for the
company's long term future and compare that vision with
current status.
They set clear goals (measurable and comprehensible to
everyone) and these goals are equally meaningful to internal
and external stakeholders.
Then a strategic plan is set to achieve these goals.



Declared strategy
As stated by the Quality management division:

Our branding strategy focuses on protecting and promoting Rameda
through differentiating it from all other companies. We believe that
our brand has a unique story which we portray through all our
communication channels conveying the following:


High quality manufactured products

Patient Centricity

Patient Broad Accessibility

Affordable Prices

Wide & diversified products for diverse therapeutic areas

Better treatment outcomes than other generics

Benefits of such current strategic
planning

Rameda exports a wide range of approximately 55 medicines
that range from standard generics to value-adding molecules to
Libya, Sudan, Ethiopia, Yemen, Uganda, Saudi Arabia and Iraq.

due to Ramedas successful strategy of gaining competitive
advantage by forming collaborations it has entered into an
agreement of partnership with Alcon* to manufacture under
license - their ophthalmology products.
* Alcon incorporated and with corporate headquarters, in Switzerland, is a global
medical company specializing in eye care products.



Analysis and comments
Rameda has an organized well documented strategic planning
process and its strategy is implemented through clearly
communicated plan, active participation, and accountability of
all members across the organization which lead to the success
previously mentioned .
But that was not the case when the company first started, This
improvement in Rameda performance happened due to the
recent major changes in upper management at 2011 (Rameda
hired a new management team with a proven track record to
complement the existing team), a team who paid enough
attention to the best practices that starts by strategic planning.
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