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A REPORT ON

“BACKWARD INTEGRATION IN THREE

SUCCESSFUL COMPANIES AND THEIR SECRET OF
SUCCESS”

GROUP MEMBERS:
MARIAM MEHDI
ASMA SHOAIB
BILAL AHMED
SAFDAR ALI

COURSE: STRATEGIC MANAGEMENT

CLASS: MBA (EVENING)
INSTRUCTOR: DR. MUSTAGHIS UR REHMAN
SUBMISSION DATE: 15TH MAY 2019
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ACKNOWLEDGMENT

“GLORY AND PRAISE BE TO ALLAH THE ALMIGHTY- THE MOST GRACIOUS &
THE MOST MERCIFUL”

We take this opportunity to express our gratitude to our mentor Sir Dr. Mustaghis-Ur-Rahman
for his commendable guidance throughout the making of this report. Without his backing and
active participation, there would no success in the completion of this report.

Lastly, we thank Allah Almighty, our families and our friends for their constant support and
encouragement without which this given task would not be possible.
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TABLE OF CONTENTS
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CHAPTER NO: 1

INTRODUCTION

As a part of our course, the topic that we were assigned to conduct a research analysis is
entitled as “Backward Integration in any three successful companies”

We were required to study the practical implications of how backward integration works
and have proven to be effective for organizations. For this purpose, we had selected three
organizations which have adopted the functioning of backward integration and see the
implications of backward integration upon the organization’s success.

Vertical integration is a form of corporate strategy through which an organization attempts

to handle its business operations itself within its value chain. Firms do so in order to gain control
over their industry’s value chain.

Backward Integration is a type of vertical integration through which a company aims to

produce the materials itself that are to be used in the production or manufacturing process i.e. a
company tends to become its own supplier. Organizations adopt backward integration due to
several reasons depending upon the organization’s business model. However, the main theme is to
be able to handle procedures by their own selves in order to utilize cost-effectively and generation
of maximum profits. By adopting the practices of backward integration, organizations aim to
increase productivity and are able to take appropriate measures to overcome any possible
deficiencies. An important benefit that an organization may receive is that by using backward
integration the firm can maintain the secrecy of its processes and procedures and provides a
competitive edge in the market place along with profit maximization.

The purpose of this research report is to analyze the practices and implications of
backward integration in three different organizations (Mitchelle’s, K & N’s and Meat one),
identify how these firms have managed to become their own suppliers and find the key reasons to
the company’s success.

The organizations that we have selected to conduct the research belong to the food
industry chain of Pakistan. Therefore, by the help of this research, we are able to identify the
practices of backward integration in Pakistan’s food industry as well as indicate the impact of
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backward integration upon the food industry. The report will provide facts and knowledge
regarding the processes and procedures of backward integration being carried out in our food
industry chain, interpret the significance of it as well as provide recommendations that can help to
forecast solutions to issues prevailing in the industry.

Conducting this research has helped us to understand and appreciate the core concepts that
were presented during the lecture of the Strategic Management course and has helped us to relate
the theoretical knowledge with practical situations.
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Background of Study

The research is a part of our Strategic Management course. The main objective of the
research is to understand and analyze the theoretical concepts and to gain a practical
understanding of those theoretical concepts presented during lectures. The research topic assigned
to us for the research is entitled “Backward Integration in any three successful companies”.
Through this research project, we have studied the concepts and information related to backward
integration in several organizations and analyzed how the theoretical knowledge of backward
integration is implemented in practical practices.

Backward Integration is considered to be an effective competitive strategy resulting in

improving the company’s business model along with providing a number of benefits such as:

 Convenience
 Improved quality
 Time-saving
 Cost management
 Control over the value chain

Aims and Objectives of the Research

The research is conducted in a way that it has made us analyze and acknowledge the importance
of backward integration. Some of the aims and objectives of this research are as followings:

 To develop a better understanding and knowledge of how does backward integration works.
 To conduct a comprehensive research of vertical integration system.
 To examine the practices and procedures related to backward integration and how businesses
make use of them.
 To analyze and highlight the drawbacks backward integration and suggest ways to overcome
those drawbacks.
 To analyze the effectiveness and efficacy of researched firms and see the handling of their
respective value chains in order to gain a better understanding of integration.
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 To study how backward integration has proven to be competitive for the organizations that
have adopted it.
 To focus on basic backward integration technique and to create a comparative analysis for
firms not following SOPs
 To provide recommendations and solutions regarding the problems identified in broad areas
of the integration process.

CHAPTER NO: 2
LITERATURE REVIEW
Businesses strive to maintain a competitive share in the marketplace. New businesses
make efforts to enter the industry while the existing businesses tend to strengthen their position
and dominate others in the market. Control is one of the strategies through which businesses get
to capture a fair advantage in the marketplace. Use of the integration is a significant method that
businesses use to gain competitive control over the industry. Vertical Integration is the ability
through which organizations tend to control or operate its value chain activities by itself in order
to survive effectively in the marketplace (County, 2008). Business Integration is a significant
strategy to address a number of concerns such as customer problems and satisfaction, workflow
management, designing an effective supply chain process to integrate different procedures and
integrating information into a single channel from different sources (Techtarget, 2012). Towards
the achievement of success, businesses tend to develop strategies for survival and growth and
integration is one of those strategies. The aim of integrating vertically is survival and gaining
competitive market share.

The two types of vertical integrations are forward and backward integration. The ability of
a business to control the supply of input is termed as backward integration while the handling of output
distribution is termed as forwarding integration (Stuckey and White, 1993). The main purpose of
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integrating vertically is to get control over the activities by controlling the supply chain either at
the production end or distribution end.

Farlex Financial Dictionary (2012) described backward integration as a business model

designed in a way that it holds control over the supply of production material. For example, a
company may tend to develop a structured way to supply its raw material to all the production
line itself. Backward integration is advantageous when a company’s present suppliers are
unpredictable, expensive or are not up to the standard of required inputs. Backward integration is
a form of corporate strategy that allows a company to increase and enhance its control over the
input supply processes. Companies do so by utilizing their resources and skills appropriately and
reducing risks caused by the external environment.

Organizations tend to use innovation within their processes by adopting new technologies.
Due to rapid changes in technologies firms might be lacked behind in the marketplace. Therefore,
research suggests that in order to attain a fair advantage in the market, companies tend to adopt
the practices of backward integration to capture value (John E. Ettlie1 and Ernesto M. Reza,
1992). Many evidence are present which shows that effective supply management is an important
key factor for success to compete in the global market and development of a strategic tool to gain
control over the activities is necessary to achieve success (Zhou, 2011).

The concept of being a supplier of your own self is encouraged as it helps organizations to
improve performance and efficiency. Accuracy of factors such as internal, product, operational
and profit, etc improve when supply input is managed at the company’s own end (Robert, 1987).

Backward integration acts as a combining force that helps firms to capture a competitive
advantage over competitors in the market and enable the company to keep a proactive approach
towards taking cost-effective measures that are might be ignored by rivals. This in turn results to
increase profitability and enhance the production process (Saloner and Salop, 1990). Backward
integration not only helps to control the supply chain but also helps to increase the quality of the
manufactured supplies to be used for production (Techtarget, 2012).

Food chain industries are often seen to adopt the practices of backward integration in
order to gain control over their supplies and raw materials to be used in the production of food
products. Food production chains adopt the fun to ensure that the quality of raw material meets
the standard benchmark. In Pakistan, a number of companies are using the concept of backward
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integration to bring simplification and improvement in their supply chain processes and
procedures. This way the food companies are enabled to meet their standards of requirements.
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CHAPTER NO: 3 – INDUSTRY & COMPANY ANALYSIS

FOOD INDUSTRY ANALYSIS
The three organizations that we have selected to conduct our research on are:
 K & N’s
 Meat One
 Mitchelle’s.
These brand names mainly belong to the processed food segment of the industry and these
firms have utilized the functions and practices of backward integration.
Processed food and beverage industry are one of the expanding industry that dominates
the international market and market leaders occupies a fair market share. Firms such as Unilever
has the highest rate of sales per day as compared to other firms operating in the same industry.
Ready to eat or cook food has gained a lot of popularity within the market segments and has
helped to overcome several barriers like power shortage and changing demands of consumers.
Pakistan’s processed food chain industry has gone through some major changes for the
past 10 years. Innovations and introduction to new technologies have bought remarkable
transformations within the industry. Food chain firms are focused to deliver high value-added
products (such as frozen items, ready to cook, healthier diet products as well as processed meat
and poultry) rather than traditional food items. The industry has encountered a large number of
firms of different sizes promising to cater to the needs and requirements of consumers belonging
to varying demographics, age, gender, taste, and income, etc. Whereas, this increasing trend has
been enhanced by strong distribution channels developed by retailers.
A number of companies are operating in Pakistan’s food industry. Some of them are
considered to be the market leaders due to their quality and customer’s perception of those
brands. Some of those brand names are namely Nestle, Dalda Foods, National Foods, Shan Foods,
K & N’s, Bake Parlor, Dawn, Shezan and Mitchelle’s, etc. Such names have highly saturated the
food industry’s market segment and have their own market share respectively.
A major part of Pakistan’s economy is contributed by the agricultural and food industry
sector.
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METHODOLOGY

COMPANY’S ANALYSIS:

ORGANIZATION NO 1: K & N’s

Company’s history

K & N's, a pillar and founding signal of the poultry industry in Pakistan, was launched in 1964 by
Khalil Sattar. He had the vision to anticipate the need to build a poultry farm. His advantage led
him to start a small farm of 1000 broilers. He had not realized that this race would become the
cornerstone of K & N.

Company’s Vision
“To give better nutrition through poultry products for nation’s happiness and good health”.

Company’s Mission
“To focus on producing best quality products those are hygienic under regular development in
order to pursue perfection”.

Goals and Objectives

K&Ns set a determined target that gives a superior wellbeing and nourishment to the country.
K&Ns have accomplished this goal through poultry ability, promise to commitment to food and
security and coordinating all poultry creation exercises under one umbrella to guarantee quality
and food safety managing and controlling all phases of production.

Products
K&N's provides a wide range of value-added, safe and healthy chicken products, with a variety of
whole chicken, karahi cut, both cut, qorma cut and premium boneless meat, with a broad choice
of ready-to-cook and fully cooked chicken products.
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SWOT Analysis

STRENGTHS WEAKNESS

a. Own logistics, shops and production farm a. High prices are affecting sales as the
b. Recognized brand name consumers are moving to their competitors
c. Ease of Access, availability in most stores, b. Discounts are for regular customers only
super markets, and hypermarkets c. Targeting upper class of society
d. Halal (certifications)
e. Less time consuming – Ready to eat
products

THREATS OPPORTUNITIES

a. Competitors like Menu, Man-o-Salwa, a. Exporting distribution channels in order to

Dawn food, are a major threat. expand business
b. Diseases in the poultry like bird flu, b. Foreign Markets
Influenza, Hydro pericardium syndrome c. More franchises across Pakistan to increase
etc. local sales
c. Growing prices of equipment
d. High Inflation
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ORGANIZATION NO 2: MEAT ONE

Introduction of the Organization
Meat One is the center claim to fame in the store chain, wide assortment of meat cuts and related
items. Meat One gives Fresh premium quality beef, mutton and chicken alongside prepared to
cook meat item. The offer prepared to cook things incorporates solidified samosa, rolls and
chickens nuggets and so on. Meat One began it activity in 2010 and now it has substantial chain
of retail outlets working all over Pakistan. It is auxiliary of AL-SHAHEER Corporation build up
2008, on the grounds that organization understand that there has been significant ascent in the
interest of Halal Meat Product.

AL-SHAHEER Corporation has been biggest private slaughtering office the whole way across
the nation. They select healthy and fit creature from inside Sindh and Punjab. At that point they
process these at its office and afterward send out it to various territorial and other worldwide
market like Gulf States and Middle East Countries, for example, Kuwait, Bahrain, Oman and
Saudi Arabia. The quality preparing of meat is HACCP (Hazard investigation and basic control
focuses) guaranteed, which keep carefully checking of each progression of the generation
procedure of sustenance. One of the significant key factor that they are proficient to control food
preparing and control real dangers like, for example, concoction, physical regulation and smaller
scale natural. HACCP has been connected the diverse global bodies, for example, NASCA which
is a standout amongst the best controlling framework accessible in the present ages.
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Across Meat One Outlets in Pakistan, customers can choose from variety of expert cuts of
mutton, beef, chicken and fish carefully carved by expert butchers to deliver you. Meat One
Cooperate portfolio includes institution and organization who are health, quality and fitness
conscious from Hospitals like Agha Khan Hospital to well renowned restaurants like
Cosmopolitan and Pompeii etc. Meat One experts everyone Covered for their quality and taste.
Meat One Also provides stores to door delivery service for its customers to ensure high quality
product at your door step.
Background of the Study
Utilization of the meat and meat item is the expansion in diet for human. Its persuasions by our
way of life, monetary status and religious standards. Among these, religious factor is considered
as essential part and family salary has positive relationship to meat utilization. This reality
portrays the higher per capita meat utilization for creating nations. The development of meat is
basically impacts by pay status and populace development particularly in nations of Middle
classes like Asia and Middle East. Be that as it may, the market advancement in this industry
includes distinctive meat types as beef, mutton, poultry, camel and so forth. Poultry is the least
expensive and favored meat donor in term of creation systems, business setup and handling.

Pakistan is the eleventh biggest poultry maker and overwhelms in poultry business with on the
planet with yearly 1.02 billion preparations. This business contributes 30% of all out meat
creation, show development at rate of 8-10% basic capability of this segment. Also, this segment
contributes 1.6% in generally speaking GDP of Pakistan (Economic Survey of Pakistan, 2017). A
lot of little scale meat ranch has been setup in everywhere throughout the nation to acknowledge
independence. In any case, significant generation everywhere scale ranch generally originates
from Punjab and Northern zones. Pakistan being situated in the region with immense and variable
air far and wide, has inside and out kinfolk and goat cultivating because of openness in northern
zone and Cholistan, common creature raising capacity, meat producing breeds and positive
atmosphere condition.
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Vision
Meat One Vision is to lead Player in Halal Food Business.
Mission
Meat One mission is to rethink the various ways individuals purchase meat in Pakistan, through
high quality meat arrangement, extraordinary client benefits just as appealing shopping
background to their client.

Swot Analysis

Strength
a. The animal is of plain region and trail free. Meat one raises its animal in plain fields of grass
to convey the best quality without meat for all animal.
b. Animals are free from hormones and serum poison medicines which makes animals
improvement regularly and meat dynamically characteristic and advantageous to eat up.
c. The pre-packaged model which offer solidarity to their thing. Its offer's customer's tendency
meat cuts, for instance, leg pieces, boneless, wings, etc.
d. Meat is HACCP affirmed (Hazard Analysis and Critical control centers).
e. Meat is new and kept chilled and never hardened the meat. Its motivation of qualification as
its opponent on a very basic level when all is said in done stores, (for instance, Nahid's and
Imtiaz supermarkets) offers and sell hardened meat.
f. Professionally arranged butchers and meat dealing with protective and clean clothing.
g. Meat from meat one is convey quality and ISO ensured.

Weaknesses
a. The professional butcher as they are having their own shops.
b. The cost incurred on the training of butchers are expensive and it self-problem for company.
c. Meat One can also limited in three cities of Pakistan. (Karachi, Lahore, and Islamabad)
Opportunities
a. Expand to other cities of Pakistan and province like Baluchistan and Khyber Pakhtunkhwa,
which will help to increase the company market share.
b. Other variety of products in product line like Parathas, bread, etc.
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c. With the cooperation of Al-Shaheer Cooperation can easily utilize Meat One’s name to
expand the global market as well.
Threats
a. The meat itself becomes a treat for the company as harm animals (dogs and donkey) started
selling in Pakistan.
b. People are reluctant and hesitant to buy meat even from premium butcher’s outlets such as
Meat One.
c. Disease such as Mad Cow, swine flu, bird flu can damage the company sales.
d. Another competitor of meat seller and meat related product.

Meat One’s Orientation With 4p’s

Price
a. Slightly premium price with just able and you get what you pay for.
b. Customization of meat cuts.
c. Issue of price fluctuation in meat one which is confusion among consumers.

Place
a. Meat one can also limited in three cities of Pakistan. (Karachi, Lahore, and Islamabad)

Promotion
a. Meat One does its promotion through print advertisement, sponsorship, and product
placement.
b. Discounted offer and digital marketing
c. THINKS ABOUT IT Campaign in 2010 in which they answer the technique for consumer
questions regarding hygienic factor in consuming the milk.
Product
a. Beef, Mutton, Chicken and Fish related hygienic and export quality meat.
b. Traditional meat cutting process through the hygienic environment.
c. Professional butchers.
d. Marinade chicken, lamb, ribs, mutton and ready to cook frozen food.
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KEY SUCCESS FACTORS

Here is a list of some important factors that are the key to the success of Meat One.

a. Global Exporter
b. Customer oriented services.
c. Certification.
d. ISO Certified.
e. Quality assurance
f. Backward integration strategy
g. Medically checked, hygienic cuts, bacteria free product.
h. Value-added product.

ORGANIZATION NO 3: MITCHELL’S

Introduction of the Organization

Mitchell's Fruit Farms Limited, generally famous as Mitchell's, is a Pakistani food
products business established by Francis J Mitchell in 1933. The land of Mitchell is720 acre in
Okara District, Pakistan.

Mitchell’s is the most senior and reliable Food Company in Pakistan. Since starting its
activities in 1933, the Company has gone from strength to strength, and its big range of goods has
included breakfast tables with fresh items, direct from its Farms in Renala Khurd - results of high
quality, improving the healthy lifestyle of many individuals with all the integrity of nature for a
healthy lifestyle.
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Mitchell's Objectives

Mitchell's objective is to convey its buyer with a hygienic, fresh and high standard item that will
entice their craving consistently. Mitchell's additionally encouraging comfort and assortment at a
reasonable price.

Vision and Mission Statement

● To leading the markets, we cater by offering superior goods and well-organized services
to our buyers while getting knowledge from their response to set even greater criteria for our
goods.
● To be a business that keeps improving its high-tech capability to deliver advanced
solutions and greater goods as per the demand of the customers.
● To be a business that uses all its resources, Management, and advanced equipment and
market opportunities to increase profit and expansion of the business.
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Swot Analysis

STRENGTH WEAKNESSES

a. Mitchells has a wide range of tastes. a. It has a limited number of outlets.

b. Mitchell has a strong brand name b. Lack of online ordering option and
c. Strong distribution system with limited combos, offers and deals
countrywide coverage
c. Their target marketing is limited
d. Quality products and trustworthiness.
e. Employees are loyal and optimistic d. Less Packaging verities
f. Mitchell is a strong brand
e. CSR staff needs training
and.recallable.
g. Mitchell has a display of the
customized cutting room.

OPPORTUNITIES THREATS

a. Increasing no. of outlets to different a. Raise in competition

locations b. Aggressive marketing of rivals
b. Untapped Market segments c. Increase demand of rivals brand
c. New flavors can be introduce d. Political uncertainty
d. Using Social Media to endorse the e. Challenge of workforce diversity

brand f. Market demand very seasonal

e. Can surprise competitors
f. Local competitors have poor
products
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CHAPTER NO 4: ANALYSIS

Backward integration of K&Ns

The company follows backward integration as they have their own feed mill and they are
producing their own bird. Quarter millions of birds are used in the company’s own farm and rest
is placed with contract growers. Some part of logistics is also being own by the company to be
more cost efficient.

K&Ns Manufacturing Process

I. Poultry Breeding
K&Ns is maintaining a layer and boiler parent stock populations in different regions of Pakistan.
Broiler parents are bred in colder mountainous northern region while Layer parent stock farms are
located in the south region.

To guarantee severe bio-security, all breeder farms work on the important

principle of all-in-out to avoid multiple ages at any breeder farm. Breeding stock is
housed in condition controlled houses outfitted with most present-day ventilation,
cooling, and warming gear. A portion of the world's best performance has been
accomplished at K&N's.

II. Hatching
K&N’s operates several strategically located hatcheries covering throughout the day-old chick
markets to guarantee the delivery of high-quality layer and broiler day-old chicks to commercial
farmers throughout Pakistan.

All hatcheries are equipped with most modern cooling, heating, and humidification systems to
provide a uniform and consistent hatchery environment independent of varying outdoor weather
conditions.

Incubators from world-renowned manufacturers are installed at all hatcheries and their
performance data is recorded and monitored by a computerized incubation monitoring system.

Upon arrival from breeder farms, hatching-eggs are candled at all hatcheries to remove eggs,
which may have cracked during transit. Sanitation and hygiene are upgraded by mechanically
transferring eggs from one type of tray onto another until chicks are harvested from hatchers.
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Maximum care is exercised while handling, reconstituting and administering vaccines using
proper techniques and modern equipment. To ensure chicks get off to the healthiest start and stay
protected from viral diseases, they receive injectable and spray vaccinations at the hatchery.

Day-old chicks are delivered to farmers in environment-controlled chick delivery

vehicles to maintain the quality during transit. After making deliveries, vehicles
are washed and disinfected before entering the hatchery premises to avoid any risk
of carrying disease causative agents back to the hatchery from the field.

III. Broiler Growing

K&N’s is also engaged in broiler growing at company-owned farms to produce broilers for our
poultry processing plant.

The chickens freely strut around, breathe fresh air, eat at will and drink fresh, cool and pure water.
They take sips from “nipple drinkers” which allow chickens to peck individual water jets, which
release one sip of water at a time to avoid water contamination.

IV. Feed Milling

To ensure consistent performance with high standards, chickens really live on a healthy and well-
balanced diet. It is based on natural grain products such as corn, corn gluten, rice,
and wheat; oil seed meals such as soybean, canola, and sunflower supplemented
with multi-vitamins and minerals.

The feed is always tested by the quality assurance lab to ensure it is wholesome
because K&N’s does not compromise on quality. The feed is also supplied to the day-old chick
customers and growers for realizing the profit potential of K&N’s quality day-old chicks.

V. Poultry Processing
At K&N’s state-of-the-art poultry processing plant, only healthy chickens are used to produce
high quality, safe and healthy chicken products. Chickens are slaughtered in a
Halal way strictly according to The Shariah.

After Halal slaughter, chickens are prepared in the most hygienic, clean and
automated way. During preparing, the birds are washed inside out and
veterinarians constantly examine the birds to confirm they are healthy.
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Cleaning is steady and each night the entire operation is completely washed and sanitized. Simply
after an intensive examination, the plant starts task every day. All chickens go through a
veterinary examination to affirm they are healthy.

Some chickens are packed as a whole; others are packed as bone-in cuts or boneless products.
Products for quality and food-safety conscious institutions - such as hotels, restaurants, airlines,
clubs and international restaurant chains - are cut according to their specific requirements and
packed in bulk packaging. Products for retail are packed in K&N's branded packaging and
individually weighed, adding another step to K&N’s quality control.

VI. Quality Assurance Labs

K&N's at each stage has guaranteed quality support to convey sound and healthy products to
customers. They have quality assurance lab at their assembling plant so as to test the entire
production process from feeding the chickens till planning or preparation of the products. They
guarantee the chicken and products to fulfill their moral guidelines.

REASONS BEHIND K&NS SUCCESS

Company is successful so far in the wake of confronting more terrible financial and social issues.
The purpose behind this massive achievement is they have proficiently filled the market gaps,
vertical integration gave them a decent chance to spare a great deal of money and control quality
in the meantime.

The following factors are the major reasons for K&Ns success:

i. Certifications

Chickens are HALAL slaughtered by hand strictly according to slaughter rules of the Shariah.
The slaughtering procedure has been checked and certified by Darul-Ifta of authentic institutions
for granting Halal certification.

a. Food & Safety Management System at K&Ns is FSSC 22000:2010 certified.

b. K&N's ensures food-safety by implementing the HACCP (Hazard Analysis & Critical
Control Points) system.
c. Quality Management System at K&N's is ISO 9001:2015 certified.
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ii. Quality assurance labs:

K&Ns tests the whole process of production (from feeding chickens until preparation of the
products) through Quality Assurance Labs that are being established in manufacturing plants.
Along with Quality Assurance Labs, they have established a research institute.

iii. Future strategic planning:

K&Ns with its mission and vision to provide quality and healthy poultry food is working for
better in the future.

iv. Strong business plan:

Strong business plan and thought had worked out and had made K&Ns effective around the
world. It will likewise make them prosper in the future as well.

v. Backward Integration:

K&Ns is doing backward integration by producing their own chickens. They do breeding,
growing hatching on their own and guarantee legitimate quality control. This empowers
straightforwardness and grabs customer trust and loyalty.

vi. Fully cooked and Ready to cook chicken products:

K&Ns deals in both fully cooked and ready to cook products with the best quality. Customers like
working ladies can rely on these in today’s busy world. They use proper equipment and ensure
quality control. This is also convenient for customers.

vii. Customer oriented services:

K&Ns teach its customers through handouts and on the spot, specialized expertise besides it has
nutritionists who manage customers. This leads to increase customer knowledge and awareness
regarding healthy and hygienic diet and will ultimately increase the sales of K&Ns products.

viii. Value Added Chicken:

K&Ns offers some benefit included, safe and healthy chickens. Well, being and cleanliness is a
noteworthy concern in this period. In addition, they give entire, designer cut, bone-in, and
boneless chicken.
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Backward Integration at Meat One

Process of Meat One Integration

Essentially, the value chain is divided into different value chain process. High-quality meat that
contaminated and fresh give a competitive edge to meet on another supplier of meat and chicken
products. Meat One pure hygienic fresh and clean makes different to the health. Meat one makes
sure that animals whose reach their cattle farm are free from antibiotic, healthy and 100% grass
feed.

Meat one only takes animal who is not the victim of artificial breeding, medicated, Anti-abiotic
method, harmful injection. Inspection system thoroughly checks the animal through individual
bases medically and then proceeds to abattoirs (Slaughter Houses). After that, they move and
wash with reverse and Oblated water and then they slaughter as per Halal standard and Sharia
laws. Then these animals can move to abattoirs to sterilize lab tests where meat can check
medically again in the pure hygienic environment. Ones it approved medically, the meat will
move to handlers with protective and hygienic clothing.

These protective meats can move to the storage unit and refrigeration. Meat one offers fresh,
hygienic and chilled and never frozen the meat. This meat will move its store and outlets after
packaging and distribution. The pre-packaged model which give strength to their product. Its
offer’s customer’s preference meat cuts such as leg pieces, boneless, wings, etc. Meat one is a
tailor-made chain of stores dedicated to meat from nurturing to slaughtering, chilling,
transportation and retailing. Meat One product has to go experience quality checks on each and
every step. Halal, healthy and fresh meat one available at various designed through various Meat
One outlets. Meat One giving priority to health and hygiene product.

Physical and Psychological Benefits

Functional Benefits

a. Providing the facilities of Hand copped meat

b. Germ-free and hygienic product.
c. Handles and trained butchers wearing hygienic gloves and hair caps.
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Emotional Benefits:

a. Halal meat and all procedure abide by the Islamic laws and regulation
b. Keep an in-house mufti to keep check and balance on the slaughtering of animals.

Brand Discrimination

a. Brand discrimination for meat one is providing a wide range of meat product continue high
techniques and technology with the assurance of Halal.

Brand Personality

a. Meat one possesses a personality that is trustworthy and sincere with sophistication as
icing on top. These three attributes make very strong and brand personality for its
consumers.

Backward Integration at Mitchells

Mitchell has a competitive advantage as the first mover in the market if we relate to other
companies. Mitchell’s was the pioneer in the field of squashes, they increased big market share
and successful to improve constructive word of mouth in favor of their products as they made
from fresh farm fruits.

Mitchell’s is the only big business among other companies, which has fully integrated operations
at one location consuming its own farming and production facilities and do not outsource any
activity. Updated Machinery, qualified executives, and competent workforces make sure that
Mitchell’s sustain its position. Mitchell’s has strong distribution structure countrywide coverage
and stated below points show the firm’s image;

● Fully integrated operations

● Own farms and processing units
● Modern and updated Machinery
● Specialized administration and skilled employees
● Advance and Continuous R & D
● A strong distribution network with countrywide coverage
● Quality products and trustworthiness
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Fully integrated operations

The company supply chain operations are fully integrated and its primary emphasis to
encourage modern equipment in the plant that is extremely effective in the manufacturing of
quality products. Each product is manufactured into different machine lines and delivered to
different machines for wrapping to give it final form. The company uses modern wrapping
equipment.

Own Farms and processing Units

Mitchell supply chain is centered on backward integration because they own farms which
are a source of fresh, healthy fruits and vegetables. The company also Own warehouses and cold
storages to keep fruits and vegetables fresh. Mitchells always encourage modern technology and
up-to-date machinery.

Advance and continuous Research & Development

Mitchell's has its own examination research centers where they look at the items to break
down its taste and upgrade the nature of the item range to keep up the focused edge in the market.
R & D team up with quality control and promoting division for constant improvement of an
existing item and makes progress toward introducing new imaginative, unique product offering
that can increase consumer loyalty and trust for the organization.
A strong distribution network with countrywide coverage.
They have a strong distribution network countrywide to cope with the growing demands
of the products. When the products converted into finish goods then the stock keeps in the
warehouses from where it supplied to countrywide. Quality products and trustworthiness
Mitchell’s is a leading business in its kind in Pakistan. The organization continuously tried to
keep its position in the market. The company has set its standards to guarantee the excellence of
product and trustworthiness. The company favors being adaptive to the changing atmosphere so
that is able to compete with its competitors offering the same products.

Specialized administration and skilled employees

Concerning the executives, its primary focus to set objectives and resolved to accomplish
that objective. The executives take a significant decision for all its tasks associated with business
and ready to implement modern processes, technology, and HR related practices. The executives
step up to the plate and make its production network attainable and on a month to month premise
take a review of its store network division and prop mindful of the exercises up.
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Trained workforce
The organization has a decent arrangement of difficult work engaged with the sorting out
of coming material into an industrial facility falling behind financially to the realities that the
homesteads have no shade. Prepared work is responsible for working the machines. The
organization has in-house utilitarian preparing stage for ceaseless redesigning of the
representatives. The work is well informed about the procedures and culture of the organization,
they never compromised for meeting the objectives and aims for which the organizations gain the
leading in the market.

Packing services
Mitchell's keep itself familiar with the most recent innovation and update equipment and
machinery by the time. The result is that Mitchell has the most recent innovation to handle the
crude material and assembling of confectionary items. By updating the innovation, Mitchell got
the upside of expanded creation limit and to deal with its generation limit, the organization began
offering co-pack administrations. The organization bargain in referenced underneath product
offerings:

• Squashes & syrups

• Pickles
• Bottled fruit beverages
• Sauces
• Canned fruits and vegetables
• Chocolate confectionary
• sweet Confectionery
• Bottled water
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Reason Behind the success of Mitchelle’s

The reason behind the success is the taste that has been appealing customers to remain loyal with
Mitchell, is because of the Company’s continuous investment and concentration on maintaining
high quality, maintained by (R & D). Following are some of the factors behind Mitchell’s
success

a. Fresh fruits
b. Vertical Integration of Supply Chain
c. Advanced R & D
d. Focus on Quality Assurance
e. ISO Certified
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CONCLUSION

Today in Pakistan, Mitchell's is the main significant organization with completely coordinated
activities having its own developing and handling offices at one area. Present day high-volume
modern gear, proficient administration and a prepared workforce guarantee that Mitchell's keeps
up its lead. Mitchell's was the pioneer in the field of squashes, they increased gigantic piece of the
overall industry and accomplished the positive verbal exchange viewing their items as they are
made of crisp ranch natural products.

Meatone is a growing brand name that’s providing good quality of products & are ISO ensured.
Animal are of plain region and trail free. Meat one raises it animal in plain fields of grass to
produce the best quality meat free for all animal.

K&N plants are self-made which are autonomous to give helping materials and fixings without
the contribution of anybody for completed K&N's things. Adjacent to this the organization's
production network is top notch. These significant factors are the key characteristics of the
organization obtained from the authoritative setup. Likewise the organization has their very own
particular collecting set up too which is a gigantic in addition to point for them.
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