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    Case Study (Ahmed Food Industries)

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    kashanpirzada
    Ahmed Foods Industries was established in the 1950s in Pakistan and pioneered packaged traditional sweets and halwa. The company found success and expanded its product range to include jams, jellies, and drinks like Naurus to compete with established brands. After the death of the founder Zamiruddin Ahmed in 1988, the company faced internal disputes between his sons over leadership and split into two units. Today, Ahmed Foods has lost much of its past market standing and image due to weak management, low employee motivation, and declining quality. In contrast, Naurus Foods has fared better since separating from Ahmed by diversifying beyond its core Naurus syrup product and maintaining motivated staff

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    Case Study (Ahmed Food Industries)

    Uploaded by

    kashanpirzada
    2K views3 pages
    Ahmed Foods Industries was established in the 1950s in Pakistan and pioneered packaged traditional sweets and halwa. The company found success and expanded its product range to include jams, jellies, and drinks like Naurus to compete with established brands. After the death of the founder Zamiruddin Ahmed in 1988, the company faced internal disputes between his sons over leadership and split into two units. Today, Ahmed Foods has lost much of its past market standing and image due to weak management, low employee motivation, and declining quality. In contrast, Naurus Foods has fared better since separating from Ahmed by diversifying beyond its core Naurus syrup product and maintaining motivated staff

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    CASE STUDY (AHMED FOOD INDUSTRIES)

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    CASE STUDY (AHMED FOOD INDUSTRIES)

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    Ahmed Foods Industries was established in the 1950s in Pakistan and pioneered packaged traditional sweets and halwa. The company found success and expanded its product range to include jams, jellies, and drinks like Naurus to compete with established brands. After the death of the founder Zamiruddin Ahmed in 1988, the company faced internal disputes between his sons over leadership and split into two units. Today, Ahmed Foods has lost much of its past market standing and image due to weak management, low employee motivation, and declining quality. In contrast, Naurus Foods has fared better since separating from Ahmed by diversifying beyond its core Naurus syrup product and maintaining motivated staff

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    2K views3 pages

    Case Study (Ahmed Food Industries)

    Uploaded by

    kashanpirzada
    Ahmed Foods Industries was established in the 1950s in Pakistan and pioneered packaged traditional sweets and halwa. The company found success and expanded its product range to include jams, jellies, and drinks like Naurus to compete with established brands. After the death of the founder Zamiruddin Ahmed in 1988, the company faced internal disputes between his sons over leadership and split into two units. Today, Ahmed Foods has lost much of its past market standing and image due to weak management, low employee motivation, and declining quality. In contrast, Naurus Foods has fared better since separating from Ahmed by diversifying beyond its core Naurus syrup product and maintaining motivated staff

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
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    The case study outlines the rise and fall of Ahmed Foods due to internal conflicts and lack of quality control after the founder's death. Naurus fared better by diversifying products.

    Focus on quality control, motivate employees through career growth, and improve marketing efforts. Reduce surplus staff and regain lost experts.

    Merging could regain economies of scale but past conflicts must be resolved and a unified vision developed to succeed.

    CASE STUDY (AHMED FOOD INDUSTRIES)

    One of the pioneers in food industry of Pakistan, Ahmed foods started their business way
    back in the fifties on a small scale. They were manufacturers of traditional sweets
    (mithai). They owned a manufacturing unit in site industrial area and initially that was
    their selling out let as well. The owner Syed Zamiruddin Ahmed, who hailed from
    Delhi, realized that there was a big market for traditional HALWA, provided they were
    packed and presented nicely. He took the initiative and Ahmed foods marketed tin packed
    HABSHI HALWA, SOHAN HALWA & KARACHI HALWA. The launching of tin
    packed sweets proved a great success and by the start of the 60’s Ahmed foods had
    become a fairly renowned name through out the country. Their only competitor in tin
    packed sweets was FRESHWELL SWEETS.

    Zamiruddin Ahmed decided to diversify the product range. Ahmed foods introduced
    AHMED JAMS, JELLIES & MARMALAIDS. There were already two well
    established companies manufacturing the same range of products, one was
    MITCHELLS & the other SHEZAN. The management of Ahmed Foods emphasized on
    quality and with in a short span of time they were serious competitors of Mitchells and
    Shezan. Ahmed Foods further diversified their product range when they decided to
    compete with the best selling local brand ROOH AFZA by introducing NAURUS. The
    marketing campaign of Ahmed Foods was really impressive; especially the TV
    advertisement of NAURUS (bhool Na Jana phir papa Naurus le key ghar ana) was
    very popular. NAURUS was giving a tough time to ROOH AFZA. The success of
    NAURUS was followed by AHMED MASALA JAT (RED CHILLIES, HALDI
    POWDER ETC)

    By the end of the 70’s Ahmed Foods were not confined with in the local boundaries, they
    were into the MIDDLE EAST market as well as ENGLAND. One of their major
    competitors SHEZAN were passing through a lean phase in the local market due to an
    issue pertaining to religion but their export business was good.

    The year 1970 witnessed the emergence of NATIONAL FOODS, owned by WAQAR
    HASAN a former TEST CRICKETER. National Foods started out very systematically
    and they were destined to become market leaders in the years to come. However Ahmed
    Foods despite increasing competition were still a force to reckon with. Their local
    businesses as well as exports were thriving.

    The slump in their business started when ZAMIRUDDIN AHMED passed away in 1988.
    He was the master mind behind all their successes. Zamiruddin Ahmed had controlled the
    organization in a very centralized manner. He was one and the only authority. From
    production & finance to selling & marketing his word was taken as LAW. Since Ahmed
    Foods was a family concern, his sons (ZAFAR & ZIA) took charge of the organization.
    But they were far behind their father in business and administrative skills. Keeping aside
    the ethical issue of right or wrong, Zamiruddin Ahmed had resisted the pressure of the
    workers and never allowed a labor union in Ahmed Foods. But his sons couldn’t with
    stand the pressure of the workers and succumbed to their demands. For the first time
    since its inception a Labor Union was formed in Ahmed Foods in 1992. From that point
    onwards the management became weaker and employees gained power.

    To make the matters worse a cold war started between the two brothers. Both of them had
    a desire to gain complete command. They were not willing to share the power, both
    wanted complete dominance over the other. Due to internal rifts business started to
    shrink. The differences among Zafar and Zia developed to an extent that ultimately they
    parted ways. Ahmed Food was split in two separate business units. Zafar took charge of
    Ahmed Foods inclusive of full product range except NAURUS which was taken over by
    Zia.

    AHMED FOODS today are merely a shadow of their glorious past. They have lost the
    footing and the image that they had held over such a long period of time in the local
    market. Employees are unable to put in their best efforts because of lack of interest from
    the management. There are no proper marketing efforts. There are so many surplus
    employees unwilling to work. Also there is lack of motivation among the workers since
    there is no visible career growth. The management could not retain people who were
    experts in food industry. The most competent people left Ahmed Foods and joined
    National Foods & Shan Foods. Last but not the least; Ahmed Foods forgot the basic
    principle that quality is the key to success. The quality, which was once their hallmark
    deteriorated and owing to that they lost their export business as well. Both National and
    Shan are excelling in export market. Another negative factor that went against them was
    miscommitments both with customers and employees.

    NAURUS FOODS on the other hand have fared better despite initially having just one
    product (NAURUS SYRUP). When Naurus was separated from Ahmed they had just one
    competitor in red syrup and that was the very well known ROOH AFZA. But in 1995
    QARSHI DAWA KHANA launched their red syrup JAM-E-SHIRIN in the market
    with a bang. The taste & quality of JAM-E-SHIRIN was refreshing and they marketed it
    with intensity. They had a very expensive TV advertisement featuring celebrities
    NADEEM & ATIQA ODHO which was telecast daily just before the KHABAR
    NAMA for continuously 6 months (there were no private channels at that time). Their
    promotional efforts made an impact and JAM-E-SHIRIN captured a significant market
    share. The current market share of the 3 competitors is as follows.
    1- ROOH AFZA 48%
    2- JAM-E-SHIRIN 35%
    3- NAURUS 17%

    NAURUS FOODS realized that it won’t be possible to survive on the basis of just one
    product decided to diversify their product range. They have now introduced NAURUS
    JAMS, JELLIES, and KETCHUPS & MASALA’S. The competition is stiff but the
    management of NAURUS FOODS is determined to compete and excel. The staff at
    NAURUS is more satisfied and motivated as compared to AHMED FOODS.
    QUESTIONS.

    1. If you are assigned the responsibilities of AHMED FOODS CEO, highlight at least 3
    steps that you would take immediately in order to streamline the things.

    2. Do you think that if AHMED & NAURUS merge once again into a single unit that can
    help them to regain their past glory?

    3. The trend of younger generation is more towards PEPSI & TANG, rather than ROOH
    AFZA & its substitutes. Do you think that the market for red syrup is going to squeeze in
    future? What strategies should be adapted by HAMDARD, QARSHI & NAURUS in
    order to expand or even retain the market share in future?

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