EDITA Internal analysis

 Organization resources
Tangible Resources:
 Manufacturing Facilities: Edita operates multiple production facilities
equipped with state-of-the-art machinery for producing various food
products.

 Distribution Network: The company has an extensive distribution

network covering Egypt and other regional markets, including
distribution centers, warehouses, and fleet vehicles.
 Brands and Product Portfolio: Edita owns a diverse portfolio of popular
brands across different food categories, including baked goods, snacks,
and confectionery.
 Raw Materials and Ingredients: Access to a stable and diversified
supply chain of raw materials and ingredients necessary for food
production.
 Technology and Equipment: Investment in technology and equipment
for manufacturing, packaging, and quality control processes.
 Financial Resources: Adequate financial capital for investment in
operations, expansion, and innovation initiatives.

Intangible Resources:
 Brand Reputation: Edita has built a strong brand reputation over the
years, known for quality, taste, and affordability.
 Intellectual Property: Ownership of trademarks, patents, and
proprietary recipes or formulations for its products.
 Organizational Culture: A culture focused on innovation, customer
satisfaction, and continuous improvement.
 Human Capital: A skilled and experienced workforce, including
professionals in various functions such as production, R&D, marketing,
and sales.
 Customer Relationships: Strong relationships with retail partners,
distributors, and consumers built on trust and reliability.
 Market Knowledge: Deep understanding of consumer preferences,
market trends, and competitive dynamics in the food industry.
 Capabilities of Edita

Edita Food Industries possesses several key capabilities that

contribute to its success and competitive advantage in the market.
Some of these capabilities include:
 Product Development and Innovation: Edita has a strong capability in
developing innovative food products tailored to meet changing consumer
preferences and market trends. This includes introducing new flavors,
packaging formats, and healthier options to its product portfolio.

 Manufacturing Excellence: The company has robust manufacturing

capabilities, leveraging advanced technologies and efficient processes to
ensure high-quality production at scale. This includes adherence to rigorous
quality standards and certifications to maintain consistency and safety across
its product range.

 Distribution and Logistics: Edita has developed a sophisticated distribution

and logistics network, allowing it to efficiently deliver its products to
customers across Egypt and other regional markets. This includes a fleet of
vehicles, strategically located warehouses, and optimized supply chain
management systems.

 Brand Management and Marketing: Edita excels in brand management and

marketing, leveraging its strong brand equity to drive consumer engagement
and loyalty. This includes strategic marketing campaigns, sponsorships, and
partnerships to enhance brand visibility and market share.

 Customer Focus and Consumer Insights: The company has a deep

understanding of consumer preferences and behavior, allowing it to tailor its
products and marketing efforts to meet evolving customer needs. This
customer-centric approach enables Edita to maintain strong relationships
with its target audience and drive repeat purchases.

 Operational Efficiency and Cost Management: Edita is committed to

operational excellence and cost management, continuously seeking
opportunities to optimize processes, reduce waste, and improve efficiency
throughout its value chain. This includes investments in automation, resource
utilization, and supply chain optimization initiatives.
 Regulatory Compliance and Quality Assurance: Edita prioritizes regulatory
compliance and quality assurance across its operations, ensuring that its
products meet industry standards and regulatory requirements. This
commitment to quality and safety enhances consumer trust and confidence
in the brand.

competencies of Edita company

Market Leadership:
 Strong brand portfolio: As a leader in the MENA region's FMCG market,
Edita likely prioritizes maintaining a strong brand portfolio with established
names like Ruwais and Canola.
 Distribution network: Efficient distribution across 13 countries is crucial for
Edita's success.
Customer Centricity:
 Understanding customer needs: Innovation in product development likely
involves understanding and responding to customer preferences.
 Building customer relationships: Edita emphasizes strong customer
relationships, suggesting a competency in building customer loyalty and
satisfaction.
Operational Excellence:
 Manufacturing capabilities: Running a vast production network efficiently
requires expertise in areas like quality control and production planning.
 Supply chain management: Sourcing ingredients and managing logistics
across a large region is a key competency for Edita.
People and Culture:
 Employee development: Edita's focus on employee training and
development suggests a competency in fostering a culture of learning and
growth.
 Commitment to ethical practices: Edita's anti-corruption policies and
adherence to the UN Global Compact principles point towards a competency
in ethical business conduct.
 Customer Centricity Competency:
 Operational Excellence Competency:
 People and Culture Competency:

 Value chain
Value chain analysis is a strategy tool used to analyze internal firm activities. Its
goal is to recognize, which activities are the most valuable (i.e. are the source of
cost or differentiation advantage) to the firm and which ones could be improved to
provide competitive advantage.
In other words, by looking into internal activities, the analysis reveals where a
firm's competitive advantages or disadvantages are. The firm that competes
through differentiation advantage will try to perform its activities better than
competitors would do. If it competes through cost advantage, it will try to perform
internal activities at lower costs than competitors would do. When a company is
capable of producing goods at lower costs than the market price or to provide
superior products, it earns profits.
 PRIMARY ACTIVITIES
The primary value chain activities of Edita are directly involved in producing and
selling the product to targeted customers. Analysis of primary value chain activities
can improve the performance of Edita as explained below.
 Inbound Logistics
It is important to develop strong relationships with suppliers as their support is
necessary to receive, store and distribute the product. Without analyzing the in-
bound logistics, Edita can face various challenges in product development phases.
Analysis of in-bound logistics requires a company to focus on every aspect of
transformation from raw material to finished product. Some examples of inbound
logistics are retrieving raw material, storing the inputs and internally distributing
the raw material and components to start production.
 OPERATIONS
The importance of analysing operational activities raises when raw material
arrives, and Edita is ready to process the raw material into the end product and
launch it in the market.
Some examples of operational activities are machining, packing, assembling and
testing.
Equipment repair and maintenance also falls into this category. It includes both-
manufacturing and service operations. Analysis of operational activities is
important for improving productivity, maximizing the efficiency and ensuring the
competitive success of Edita. The increased productivity can help Edita to achieve
consistent economic growth, increase profitability and set a powerful basis for
competitive advantage.
 OUTBOUND LOGISTICS
Outbound logistics include the activities that deliver the product to the customer by
passing through different intermediaries. Some outbound logistics activities are
material handling, warehousing, scheduling, and order processing, transporting and
delivering to the destination. Edita can analyze and optimize the outbound logistics
to explore competitive advantage sources and achieve its business growth
objectives.
Because, when outbound activities are timely managed with optimal costs and
product delivery processes put a minimum negative effect on the quality, it
maximizes the customer satisfaction and increases growth opportunities for the
firm. Edita should pay specific importance to its outbound value chain activities
when it's offered products are perishable and require quick delivery to the end
customer.
 MARKETING AND SALES
At this stage, Edita will highlight the benefits and differentiation points of offered
products to persuade the customers that its offering is better than competitors. Only
producing a high quality product at affordable costs and distinctive features cannot
create value until Edita invests on the marketing and sales activities. The sales
agents and marketers play an important role here.
Some examples of Edita's marketing and sales activities are-sales force,
advertising, promotional activities, pricing, channel selection, quoting and building
relations with channel members. The company can use the marketing funnel
approach to structure its marketing and sales activities. The marketing strategies
can either be push or pull in nature, depending on the Edita's business objectives,
brand image, competitive dynamics and current standing in the market.
Effective and wisely integrated marketing activities can develop the brand equity
of Edita and help it stand out from the competition. However, Edita must avoid
making false commitments about product features that cannot be fulfilled by the
production department.
It indicates the need to ensure coordination between different value chain activities.
 SERVICES
The pre-sale and post-sale services offered by the Edita will play an important role
in developing customer loyalty. The modern customers consider post-sale services
as important as marketing and promotional activities. The power of negative e-
WOM due to poor support service cannot be undermined in the current
technologically advanced era. The company must analyze its support activities to
avoid damaging brand reputation, and instead use it as a tool to spread positive
word of mouth due to quick, timely and efficient support services.
 SECONDARY ACTIVITIES
The support activities play an important role in coordinating and facilitating the
primary value chain activities. Edita can also benefit from analysis of its support
activities as explained below.
 FIRM INFRASTRUCTURE
The firm infrastructure denotes a range of activities, such as- quality management,
legal matters handling, accounting, financing, planning and strategic management.
Effective infrastructure management can allow Edita to optimize the value of the
whole value chain.
Edita can control the infrastructure activities (or commonly called overhead costs)
to strengthen the competitive positioning in the market.
 HUMAN RESOURCE MANAGEMENT
Edita can analyze human resource management by evaluating different HR aspects,
including- recruiting, selecting, training, rewarding, performance management and
other personnel management activities. The effective HR management can allow
Edita to reduce competitive pressure based on motivation, commitment and skills
of its workforce. The company can also achieve its cost minimization objectives by
analysing hiring and training costs with their relative return. The heavy dependence
of Edita on employees' talent will increase the importance of this value chain
support activity.
 TECHNOLOGY DEVELOPMENT
In a modern, technological advanced era, almost all value chain activities depend
on technological support. The technological integration in production, distribution,
marketing and human resource activities requires Edita to realize the importance of
technology development. It can be divided into product and process technological
development activities. Some examples are-automation software, technology-
supported customer service, product design research and data analytics. The
research and development department of Edita is classified in this category.
 PROCUREMENT
The procurement in value chain denotes the processes involved in purchasing the
inputs that may range from equipment, machinery, raw material, supplies, raw
material and other items necessary for producing the finished product. Due to its
linkage with multiple value chain activities, Edita should carefully consider its
procurement activities to optimize the inbound, operational and outbound value
chain.
As mentioned above, the application of Porter Value Chain model depends on
understanding the importance of all activities. After understanding the relative
importance of identified value chain activities, Edita should highlight areas where
value can be added, cost efficiency can be achieved, differentiation basis can be
set, or processes can be optimized.

 VRIO Framework
Activities VRIO
Value Rareness Imitabilit organization
y
Inbound logistics
Relationships with suppliers

Raw materials

Quality reception

Operations
Manufacturing & service
operations
Increase productivity

Taste and product quality

Process the raw material

Outbound logistics
Order processing

Full delivery trucks

FG Warehousing

Distribution

Marketing & sales

Pricing

Communication

Promotion

Channel selection

Services
Pre-sale service

Post sale services

Customer service

Firm Infrastructure
Quality management

Legal matters handling

Accounting

Financing

Planning & strategic

management
Human resource management
Recruiting

Selecting

Training

Rewarding

Performance management

Technology development
The technological integration

ERP system

Procurement
Purchasing the inputs

Supplier audit & development

 Internal strategic audit

1) Management
  STRENGTHS
1. Low operational costs
2. Can control the production volume
3. High ROE
4. Large Market Share
5. Low prices that satisfy customer needs.
6. Long distribution coverage among Egypt and the Middle East
7. Presence in more than 17 countries in Middle East & North Africa
8. Launching new products adding to the company and increasing brand
awareness.
9. Strong Marketing companies
10. High Inventory turnover ratio
 WEAKNESSES
1. Low exports levels due to the nature of product
2. Future debt rating (due to the large number of shareholders)
3. Inability to invest in research and development (Due to the exist of large number
of competitors)
4. Low salary for labors
5. Highly turnover rate
6. Lack of competitive salary structure
7. Working conditions
8. technological problems due to old software & old servers

IFAS Matrix Weight Rating Weighted

score
strengths
Low operational costs 0.06 3 0.18
Can control the product volume 0.03 3 0.09
High ROE 0.08 5 0.4
Large market share 0.10 5 0.5
Low prices that satisfy the market share 0.09 4 0.36
Distribution coverage all over Egypt 0.10 4 0.4
governorates
Presence in more than 17 countries in Middle 0.03 4 0.12
East & North Africa
Launching new products adding to the 0.05 4 0.20
company and increasing brand awareness
Strong marketing campaigns 0.08 5 0.4
High inventory Turnover ratio 0.10 5 0.5
Sub-Total 0.72 - 3.15
Weaknesses
Low exports due to product nature 0.02 3 0.06
Seen as unhealthy product 0.03 2 0.06
Low spent on R&D 0.05 2 0.1
High turnover ratio 0.03 2 0.06
Lack of competitive salary structure 0.02 1 0.02
Low labor salary 0.04 1 0.04
Labor working conditions 0.04 3 0.12
Technological problems due to old SW & old 0.05 3 0.15
servers
Sub-Total 0.28 - 0.61
Total 1 - 3.76