Capstone Sample

Topics: Sugar, Sucrose, Morocco Pages: 48 (14761 words) Published: April 29, 2013
EXECUTIVE SUMMARY: The history of sugar in Morocco goes back to the 7th century. It developed through different stages until 1929 when the French started the first modern sugar refinery in the country; “COSUMA”. Today, this same refinery, called COSUMAR, dominates the Moroccan market with 100% market share. A thorough analysis reveals remarkable facts. Despite a strong internal position, the sugar producer is not taking advantage of important external opportunities, especially those on the international markets. Opportunities that can solve its major issue: the very slow growth on the saturated Moroccan market. Other than the growth concern, the main looming threats for which the company is not preparing any effective solutions are the potential entry of new competitors and the elimination of tax exonerations for the agricultural sector in 2013. It also has weaknesses that it needs to address. The main ones include a dangerous exposure due to the import of 55% of the national consumption from a single provider (Brazil) and the concentration of all its operations in the saturated Moroccan market. Obviously, the internal and external assessments of the company yielded few issues. Other than the previously mentioned slow growth and heavy dependence on Brazilian imports, the company is suffering from the high average age of its employees, and the low brand awareness. If the weak has problems, the strong has solutions. For the above mentioned issues, different long term objectives were set to solve them by 2013. To address the major issue of growth, the objective set is to increase sales by 9% annually. Then, for the problem of dependence on imports, the objective set is to reach 60% self-sufficiency while for the threat of new entrants; the objective is to increase awareness of the company’s five brands. Finally, the objective set to solve the high average age issue is to decrease it from 45 to 40 years old. An additional suggestion is made to negotiate a solution with the government for the tax issue. For each of these ambitious objectives clear and meticulous strategies are orchestrated. To reach the targeted growth rates, COSUMAR is advised to establish a production unit in Sudan to produce for the Sudanese and neighboring markets. Similarly, for the increase of selfsufficiency to 60% it is recommended that COSUMAR pushes the productivity of its suppliers to increase by 35%. The company should also replace 25% of its employees by younger ones with an average age of 25 years old to get to the desired 40 years old average. The exhaustive details of the different conducted analysis, the identified issues, the set objectives, the devised strategies and the recommended courses of action are within the paper at hands.


Strategic Plan 2011-2013

Company overview:
I. Company history: In the 10th century, Morocco became a mass producer of sugar destined to be sold in both the domestic and foreign markets (e.g. Italy). In the 15th century, Morocco became a mass sugar importer after the production had shifted to Europe. This situation continued until 1929 with the creation in Casablanca by a French company (Société Nouvelle des Raffineries de Sucre de SAINT LOUIS de MARSEILLE) of the first modern sugar refinery in the country: COSUMA. It had a production capacity of 100 tons per day of sugar. In 1967, the Moroccan state acquired 50% of COSUMA which became COSUMAR. Later, in 1985, the company was introduced in the Casablanca Stock Exchange Market. In the same year, Omnium Nord Africain (ONA) became the majority shareholder of the company. In 1993, COSUMAR merged with the Zemamra and Sidi Bennour refineries. In addition, the whole decade and the 21st century were characterized by massive investments to increase the production capacity and the market share of the company. In 2005, COSUMAR acquired the sugar companies privatized by the government to become a monopoly in the Moroccan sugar industry: SUTA, SURAC, SUNABEL and...
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