strategic Marketing Managment

HIGHNOON LABORATORIES 1

Value Chain of Highnoon

Primary Activities

Inbound Activities:

Inbound logistics is primarily associated with receiving, storing, and distributing inputs to the

product. It includes material handling, warehousing, inventory control, vehicle scheduling, and

returns to suppliers. Highnoon is mostly purchasing molecules and other chemicals from

different suppliers in Pakistan and also importing from United States, U.K., Germany,

Switzerland, Japan, Holland and France. According to the company “Only the best Raw

materials make it to the finished products, thus ensuring that what roles of the production line the

finest of products and is nothing less”. Once the materials are sorted out then they are shifted to

companies

Operations:

Operations include all activities associated with transforming inputs into the final product form.

Highnoon ensures that tools employed in production process are of the top most quality.

According to the company HighNoon production plant is comprised of latest equipment from


UK, Germany, France and Italy. Highnoon is also one of the few companies in Pakistan that

have a dedicated antibiotics manufacturing facility in Pakistan. Medicines are made while

keeping all the specific procedure that is assurance of highest quality medicine produced.

Outbound Logistics:

Activates related to the outbound logistics are associated with collecting, storing, and distributing

the product. Highnoon laboratories have its own distribution channel but it is not as strong as

other companies having. Highnoon manages all the outbound functions by itself, like storing in

warehouses to the distribution of medicine to doctors and general stores. Highnoon should

improve its distribution channel globally. So it can compete with the other pharmaceutical

laboratories.

Marketing and Sales force:

Highnoon laboratories have highly skilled motivated and competent sales force to market its

products. Since HighNoon is a pharmaceutical company so making sure that the sales force are

to capture the market by using innovative approaches towards doctors and medical stores is

important. Highnoon have selected the most appropriated channel i.e. referrals by Doctors and

medical stores. And also because Highnoon is working with a differentiation strategy through

setting up the price and product line they have been successful in capturing their part of the

market.

Services:


Pharmaceutical companies need to work with very error free environment and there is not much

margin for errors in them. Highnoon understands the situation and make sure that all the expired

medicines are taken out of the market on time. Relations with the Doctors are also key aspect of

the companies services policies.

Secondary Activities:

General Administration and Infrastructure

General administration in Highnoon consists of number of activities like general management,

planning of how much productions are needed and how to produce according to the demand of

the customers, finance and legal and government affairs as it is a highly a sensitive industry with

no chance of error.

The production unit and the head office of the Highnoon are located at Multan Road, Lahore. All

the demands are fulfilled by the production from this facility.

Human Resource Management

Highnoon is very much concerned about the humans which it hires because it can fulfill the

needs of the customers by recruiting the best human resources. Highnoon investment in human

resource starts with the recruitment. It invests heavily on the human resource because it is one of

the resources from where they are getting competitive edge over their competitors.

Technology


Pharmaceutical companies mostly rely on their research and development because it is a key

success factor for any pharma company. The research and development is based on the latest

technology and Highnoon is well equipped with latest machinery for the production of anti-biotic

products. This machinery recently has been imported from Germany and France. Research and

development has been geared up in Highnoon to introduce new products and to increase the

market share.

Procurement

In order to have good relation with their suppliers, Highnoon has made their suppliers as

business partners. Following are the suppliers from where Highnoon purchases the raw materials.

Solvay Pharmaceuticals (Germany)

Mitsubishi Tanabe Pharma Corporation (Japan)

Chugai Pharmaceuticals Co., Ltd (Japan)

Laboratories Almirall, S.A (Spain)

Bouchara Recordati (France)

` Yes/ No How Highnoon does create value for its customers?

Primary

Inbound logistics Yes Highnoon is currently purchasing the best raw materials

from the best pharma product suppliers in the world.

Operations Yes Highnoon is equipped with latest production units which

help it to efficient production development and timely new


launches.

Outbound Logistics No Highnoon is not well equipped with distribution.

Marketing and Sales No Because of the poor distribution, their marketing activities

are also disturbed.

Services Yes Highnoon is facilitating their customers with after sale

services.

Support

Procurement Yes Highnoon is purchasing from the well known companies

all around the world.

Technology yes Highnoon is equipped with the latest technology and

efficient research and development.

Human resource

Management

Yes Intellectual capital is the main resource of Highnoon

competitive edge.

General

Administration

Yes Highnoon management is working effectively to manage

all the activities in order to create value for their customers.


Inbound

LogisticsIn

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Operations Yes No Yes No No Yes Yes Yes Yes

Outbound

Logistics

No Yes No Yes No No Yes Yes Yes

Marketing and

Sales

No Yes Yes No Yes No No Yes Yes

Services No No Yes Yes No No No Yes Yes

Procurement Yes Yes No No No No No No Yes

Technology Yes Yes Yes No Yes No No Yes Yes

Human

Resource

Management

No Yes Yes Yes Yes No No No Yes

General

Administration

Yes Yes Yes Yes Yes Yes Yes Yes No


Resource/

Activity

Is it Valuable? Is it Rare? Are there few

Substitutes?

Is it Difficult to

make?

In bound

Logistics

Yes No No No

Operations Yes No Yes Yes

Outbound

Logistics

Yes No No Yes

Marketing and

Sales

Yes No No Yes

Service Yes No No Yes

Procurement Yes No Yes No

Technology Yes Yes No Yes

Human Resource

Management

Yes Yes No Yes

General

Administration

Yes No No Yes


Resources of HIGHNOON

Following are the resources that give HIGHNOON a competitive edge over their competitors;

Efficient Production Process

Human Resource

Highly Efficient R&D

Due to the above mentioned resources, HIGHNOON are enjoying a competitive edge over their

competitors. The competitive edge is that they are having differentiation products that are being

sold at high prices in the market.

For Example:

Loprin

Lipirex

Blokium

Xyilin

Cidine

Colofac

Duphaston

These above mentioned medicine are formulas that other companies also have and producing the

same formula products under different names but Highnoon is differentiating them by having

higher prices in these medicines and they are successful in doing so. The prices of these types of

products of Highnoon are 3 to 4 Rs. Higher than competitors.


Highnoon is creating competitive edge with patents rights of more than 5 formulas, which they

have acquired with extensive Research and Development. These formulas are under patent and

copyrights of Highnoon so no other pharma company can produce medicines from these

formulas. These formulas are the resources from which Highnoon is making itself different from

other market players. Highnoon is also creating differentiation by having higher prices than its

competitors and customers are willing to buy at given prices.

Example

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Artrodar

Ratio Analysis (2009-2010)

Short-Term Solvency or Liquidity Ratios

a) Current Ratio = Current Assets/Current Liabilities

= 866,886,416/640,403,587

= 1.35 Times

If it is less than 1.90 then it is dangerous for the company and if it is above 2.10 then it is in-

efficiency of the company. In this case current ratio is 1.35 which shows that company is in a

dangerous position.


b) Quick Ratio = Current Assets – Inventory/Current Liabilities

= 866,886,416-640,844,633/640,403,587

= 0.35 Times

Industry average for this ratio is 1.20 so that is not good for the company because it is low then

the industry average.

Long-Term Solvency or Financial Leverage Ratios

a) Total Debt Ratio = Total Assets – Total equity/Total Assets

= 1,740,968,895-188,475,264/1,740,968,895

= 0.90 Times

Industry average for this ratio is 0.90 so the ratio for the company is good because it is according

to the industry average.

b) Debt Ratio = Total Debt/Total Assets

= 1,028,359,762/1,740,968,895

=60 %

This ratio shows the risk factor of the business, if it is between 40%-60%, then it is reasonable.

In this case debt equity ratio for the company is 60% so it is reasonable for the company.

c) Time Interest Earned Ratio = EBIT/Interest

= 105,580,358/89,424,804

= 1.180 Times


This ratio shows that how many times the firm can pay interest. Industry average for this ratio is

6 times and in this case it is 1.180 so it is below industry average.

Asset Utilization or Turnover Ratios

a) Inventory Turnover = CGS/Inventory

= 1,732,983,015/640,844,633

= 2.70 Times

This ratio shows that how many times we sell our inventory in a year. Industry average is 9

times, but for it is 2.70 which is below the industry average.

b) Receivable Turnover = Sales/ Account Receivables

= 2,636,538,261/195,710,292

= 13.48 Times

This ratio shows that how many receivables we have in a year, the low is better. It is high so it

needs to be minimized.

c) Total Asset turnover = Sales/Total Asset

= 2,636,538,261/1,740,968,895

= 1.52 Times

This ratio shows that using total assets, how much sales we managed in a year. Industry average

is 1.8 times and for the company it is 1.52 times, so it needs to be improved.


d) Capital Intensity = Total Asset/Sales

= 1,740,968,895/2,636,538,261

= 0.66 Times

Profitability Ratios

a) Profit Margin = Net Income/Sales

= 70,343,964/2,636,538,261

= 2.67%

This ratio shows that if we make a sale of 1$, how much in this 1$ is our profit. Industry average

is 5% and in this case it is 2.67% which is very below as compare to industry average.

b) Return on Asset = Net Income/Total Asset

= 70,343,964/1,740,968,895

= 4.04%

This ratio shows that how many returns we can gain by engaging the total assets. Industry

average is 9.0% and for the firm it is 4.04% which is below then the industry average.

c) Return on Equity = Net Income/Equity

= 70,343,964/712,609,133

= 9.88%

In this ratio we do not check performance, we check benefits. Industry average is 15.0% and for

the company it is 9.88% which is below then the industry average.


Du Pont Equation:

ROE = (Profit Margin) (Total Assets Turnover) (Equity Multiplier)

= (Net Income/Sales) (Sales/Total Assets) (Total Assets/Common Equity)

= (70,343,964/2,636,538,261) (2,636,538,261/1,740,968,895) (1,740,968,895/712,609,133)

= 9.88%

Strengths & Weaknesses of Highnoon

Ratios Amounts Industry Average

Comments

Current Ratio 1.35 1.90 - 2.10 Poor

Quick Ratio 0.35 1.20 Poor

Total Debt Ratio

0.90 1.00 OK

Debt Ratio 60% 40% - 60% Good

Times Interest Earned

1.180 6.0 Poor

Inventory Turnover

2.70 9.0 Poor

Receivables Turnover

13.48 36 Days Poor

Total Assets Turnover

1.52 1.8 Somewhat Low

Capital Intensity

0.66 Good

Profit Margin 2.67% 5.0% Poor

Return On Assets

4.04% 9.0% Poor

Return On Equity

9.88% 15.0% Poor

Du Pont 9.88% 15.0% Poor


Following are the strengths and weaknesses of Highnoon:

Strengths:

• Providing high quality products

• Efficient capacity management

• Patent & copy rights

• Human resource

• Continuous improvement

• Financial stability

Weaknesses:

• Providing high quality products

• Efficient capacity management

• Patent & copy rights

• Human resource

• Continuous improvement

• Financial stability

IFE Matrix of HIGHNOON


Internal Strengths Weight Ratings Weighted Score

1. Providing high quality products 0.2 4 0.8

2. Efficient capacity management 0.1 4 0.4

3. Patent and copy rights 0.1 3 0.3

4. Human resource 0.1 4 0.1

5. Continuous improvement 0.1 4 0.4

Internal Weakness

1. Distribution channel 0.1 2 0.20

2. Shortage of space 0.05 2 0.01

3. Utilization of funds 0.05 2 0.01

4. Lack of variety of products 0.05 2 0.01

5. Internal control system 0.15 2 0.30

Total Weighted Score 1.00 3.10

Result: Total weighted score value is 3.1 which mean company internal position is Good

Strategic Group Mapping


Strategic group mapping categorizes industry competitors into meaningful groups based on at

least two strategic variables. The size of circle shows the market share of companies lying in that

circle. Close competitors fall in same circle. Circles which are close to each other are also close

competitors. These companies have the following characteristics

• Profit potential is same for all the companies lying in the same circle and those who belongs

to the close circle.

• Driving forces are also almost the same for these companies.

• They are also close competitors.

Product Range & Product Quality

HIGHNOON laboratory is providing high quality products and moderate product range that’s

why it is close to CCL and SPL. SPL is offering high quality with low product range while CCL

is offering high product quality with high product range.

Brand Image & Distribution Channel


HIGHNOON laboratory has moderate distribution channel along with high brand image. CCL

and SPL are its close competitors having moderate and low distribution channel respectively.

Both CCL and SPL have high brand image as of HIGHNOON laboratory.

Global Expansion & Market Penetration

HIGHNOON Laboratory and CCL highly focusing on market penetration along with moderate

focus on global expansion. SPL has moderate focus on market penetration and global.


COMPETITIVE PROFILE MATRIX (CPM)

Competitive profile matrix is an essential strategic management tool to compare the firm with the

major players of the industry. Competitive profile matrix shows the clear picture to the firm

about their strong points and weak points relative to their competitors. The CPM score is

measured on basis of critical success factors, each factor is measured in same scale mean the

weight remain same for every firm only rating varies. The best thing about CPM that it includes

your firm and also facilitates to add other competitors make easier the comparative analysis.

CPM includes both internal and external factors to evaluate overall position of the firm with

respective to their major competitors. We have taken Searle Pakistan Ltd and CCL as a

competitor of HIGHNOON laboratories on the basis of strategic group mapping.

VERTICAL ANALYSIS

This figure shows that CCL is responding more to the mentioned critical success factors as

compare to HIGHNOON Laboratories and Searle Pakistan Ltd. So far as HIGHNOON


laboratory is responding more to these success factors as compare with Searle Pakistan Ltd. So,

HIGHNOON laboratories avail a strong position in its competitors.

HORIZONTAL ANALYSIS

So far as each critical success factor is concern the response and position of these three

companies is as follows:

Product Availability

Weighted Score of HIGHNOON laboratories and CCL are 0.45 which is more than the weighted

score of Searle Pakistan Ltd. So, the distribution channel of HIGHNOON laboratory and SPL is

more competitive than SPL resulting in better product availability.

Product Quality & Brand Image

CCL, HIGHNOON Laboratories, and SPL are maintaining product quality in same passion. As

they are close competitors of each other they have same brand image.

Product Range

With reference to product range CCL bears strong position as compare with HIGHNOON

laboratory and HIGHNOON laboratory is having strong position as compare with SPL.

Product Development

HIGHNOON laboratories and CCL are more competitive and insuring efficient product

development.


Global Expansion

CCL and SPL are more competitive than HIGHNOON laboratories in global expansion.

HIGHNOON is a local company involved in exports on moderate level.

Customer Loyalty

All of these three companies have equally loyal customers according to our analysis.

Market Penetration

HIGHNOON

LABORTORIES

SEARLE

PAKISTAN

CCL

Critical Success Factors

Weights Rating Weighted Scores

Rating Weighted Scores

Rating Weighted Scores

Product

Availability

0.15 3 0.45 2 0.30 3 0.45

Product

Quality

0.20 4 0.80 4 0.80 4 0.80

Brand Image 0.05 4 0.20 4 0.20 4 0.20

Product

Range

0.10 3 0.30 2 0.20 4 0.40

Product

Development

0.15 3 0.45 2 0.30 3 0.45

Global 0.10 2 0.20 3 0.30 3 0.30


Expansion

Customer

Loyalty

0.15 4 0.60 4 0.60 4 0.60

Market

Penetration

0.10 3 0.30 2 0.20 4 0.40

Total 1.00 3.30 2.90 3.60

CCL has the ability to penetrate into the market where as HIGHNOON laboratory and SPL is

still trying to penetrate into the market.

CPM Matrix

By this CPM we can conclude that CCL is responding more to the critical success factors as

compare to Searle Pakistan and HIGHNOON. HIGHNOON is responding more to the critical

success factors as compare to Searle Pakistan so it has strong position it its competitors.

Generic Strategies of Firms

Highnoon:

Highnoon was incorporated in 1984 in the historical and culturally rich city of Lahore called the

heart of Pakistan. It took initiative with a culture of commitment, competitiveness and distinction

in every area of its operations. So far as its strategic alliance is concerned it is trend setter and

leading company in the industry right from its initiation up till now. The organizational structure

allows the employees the freedom, which is necessary to further initiative and creativity.

Employees can take appropriate decisions and implement these with conviction. This approach

has enabled Highnoon to bring forth world-class capabilities in marketing and sales.


Following are the strategies on which Highnoon focuses:

Efficient Production Process

Human Resource

Highly Efficient R&D


Generic Strategy of HIGHNOON:

Highnoon is using the differentiation strategy because they are selling the same formula products

at high price in the market; moreover they are having few products on which they have patent

and copyrights. These medicines cannot be copied by the other market players. It is giving a

differentiation advantage over their competitors.

Searle Pakistan Limited:

Searle Pakistan Limited (SPL) was incorporated in Pakistan as a Private Limited Company on

October 5, 1965 as a subsidiary of G.D. Searle & Co., U.S.A. In 1966, Searle Pakistan (Private)

Limited acquired a small manufacturing facility in S.I.T.E. and production of Aldactone,

Lomotil, Diodoquin, Ovulen, Neomycin Sulphate, Probanthine and Hydryllin, etc. started there.

Over the years the operation expanded and during 1984 construction of a new factory started.

During mid 1986 manufacturing operations of high quality pharmaceutical products commenced

at this newly built factory at Plot # F-319, S.I.T.E. Area, Karachi, measuring 5.24 acres.

Following are the strategies on which Searle Pakistan is focusing:

Quality of products

New methods of cost cutting

New technologies


Generic strategy of Searle Pakistan:

Searle Pakistan is using overall cost leadership strategy in the production process by introducing

cost cutting measures and as a result they are having a competitive advantage over their

competitors by introducing low cost products in the market.

CCL Pharmaceuticals:

CCL was formed in 1965 by a renowned physician, Dr. Dilawar Hussain and his sons. In 1970,

Pulmonol cough syrup was launched, which turned out to be an instant success and grew to

become the flagship of the company. Many a times, Pulmonol has had the honor of being the

best selling cough syrup in the country, and proved a vital source of paving way for the company

heavy expenditure on research & development of innovative and novel new products.

Collective Responsibility & Integrity

Participative Management

Ongoing Interpersonal Communication

Mentoring and nurturing other colleagues

Continuous Improvement

Generic strategy of CCL Pharmaceuticals:

CCL pharmaceuticals are using differentiation strategy. They are differentiating themselves on

the basis of their distribution channel. CCL have a strong marketing and sales force of more than

300 people with a reach of more than three hundred territories covering literally every nook and


corner of the country. Their sale force visits more than 50,000 doctors and their medicines are

present at more than 50,000 pharmacies nationwide. This reach, depth and strong presence make

it a very strong player in the local pharmaceutical arena.

Generic Strategy and Five Forces Model

The generic strategy that is used by Highnoon is “differentiation”. Highnoon is differentiating

itself on the bases of product range and product quality. It is having a very efficient research and

development department which helps it for making the new products. Highnoon also deals with

its suppliers as business partners so they together are also researching on making the new

products so that they can serve the humanity in the better way. This strategy is helping the

Highnoon that they are selling their products at higher prices as compare to their competitors.

This strategy is also helping the Highnoon to fifth against the five forces model.


Bargaining power of Buyer:

Bargaining power of buyers is at moderate level. It is very sensitive to switch from one product

to another because it is a life concern so customers cannot switch easily from one reliable

product to the other. On the other hand there are many pharmaceutical companies offering a wide

range of products. So, the bargaining power of customers is at moderate level.

As Highnoon is manly focusing on their research and development, this will help the firm to

introduce more products that are not manufactured by other competitors. After having patents

and copyrights on new formulas, Highnoon will be the only producer of those products. This will

decrease the bargaining power of buyer for Highnoon.

Bargaining power of Supplier:

Bargaining power of Supplier is high. Suppliers of pharmaceutical industry of Pakistan are the

originators and large research based companies located in developed countries. They are a few in

numbers as compared with pharmaceutical companies in Pakistan. Therefore they have strong

bargaining power with them.

Highnoon has made their suppliers as their business partners. They are having good relationships

with their suppliers. As there are few suppliers available in the market so when a company

makes the supplier as their business partners, they work on win-win bases. This will help to

reduce the bargaining power of suppliers.


Intensity of Rivalry:

Rivalry is at moderate level. So far as industry analysis is concerned it implies that rivalry among

existing firms in pharmaceutical industry is almost at moderate level. Pharmaceutical companies

are competing on the basis of quality, cost, product range and research and development.

The most successful firm in pharma industry is that is giving differentiated products to the

customers. Highnoon is spending a lot on their research and development, they do not want the

new firms to entre in the market, and they are trying to fill the gaps that are not filled by other

companies. It will help to reduce the rivalry in the industry. When the gaps will be filled, no one

will be willing to entre in the pharma industry.

Threat of New Entrants:

Threat of new entrant is at moderate level. Pharmaceutical industry of Pakistan is growing

rapidly and there is still significant potential for growth. There are chances of some new entrants

but this threat is at moderate level. It is not easy to establish a new pharmaceutical company in

Pakistan due to requirement of huge investment.

Threat of new entrants can be minimized if all the gaps are filled by current market players. All

the companies in the industry want to fill gap that are not still fulfilled. It will help to reduce the

threat of new entrants.

Threat of Substitute:


Research and development are the essence of pharmaceutical industry. Every pharmaceutical

company in Pakistan is making efforts for the betterment of their research and development

department. Still there is a significant threat of substitute products because of rising discoveries

and pacing research and development in the whole world.

By introducing new products, Highnoon is continuously trying to reduce the threat of substitute

products.

Product Life Cycle of Pharma Industry

Product life cycle describes that at what stage currently the industry lies. Either its on

Introduction stage or Growth or Maturity or at the ending stage of Decline, Pharmaceutical

industry in Pakistan is at a growth stage. This trend is not only in Pakistan but worldwide its on a

growth stage. New product developments are taking place and continue Researches are done on

finding ways to cure the diseases.


If we see the growth trends in the past 5 years of Pakistan we can clearly see that industry growth is

increasing from 8.67 % in 2009 to 9.39 % and its still growing at a steady pace. New companies are

trying to enter in the market and new research and developments are made by companies to gain the

patent rights.

Typical Product Life cycle in Pharmaceutical Industry

The typical product of a pharma industry goes under following steps:

Drug Discovery

Lead Optimization

Drug Development

Manufacturing & Supply Chain

Marketing, Sales and Distribution


Drug Discovery

The first step in the typical product life cycle in a pharmaceutical industry is of the drug

discovery. Drug discovery refers to the idea of the drug which arises when a new disease is

found or new developments are done to the previously discovered diseases.

Lead Optimization

A complex process of refining the chemical structure of a hit to improve its drug characteristics,

with the goal of producing a pre-clinical drug candidate. The synthetic modification of a

biologically active compound, to fulfill all stereoelectronic, physicochemical, pharmacokinetic

and toxicological required for clinical usefulness

Drug development


Once the lead optimization is done next PLC step is to actually develop the new drug. This phase

is very critical and the testing of the product is done in this phase. This phase is mostly

completed in 6 to 7 years and lots of experiments and testing are done before the manufacturing.

Manufacturing and Supply chain

After the initial testing and experiments the Manufacturing process begins. Raw materials are

processed and developed in to the final form of the medicine. Finished products are then

distributed in the market. This phase comprises of almost 8 to 9 years.

Marketing Sales and Distribution

After the initial production of the medicine a single drug can be marketed. This advertisement is

to make sure that the formula is now available in the market. This process is more of more than

10 years.

Conclusion & Recommendations

High Noon Laboratories Pakistan Ltd is currently working fine under a very tough situation in

Pakistan. Company is trying to follow the market leaders and trying to tackle other big

Multinational companies in the scene. Company Management is working effectively to maintain

a proper position in the market, with high concentration on their research and development and

their distribution channel. Company was established in the mid 1980’s and has established itself


as one of the leading manufacturers of pharmacy products. Company was ranked as # 17 in the

Pakistani Pharmaceutical market.

Pharmaceutical industry is currently in the growth stage. From recent five years Government of

Pakistan is focusing on pharma industry and providing them incentives because its contribution

to GDP has been grown above from 1% to 4.8%. The Government has also minimized the

import duties on chemicals from 25% to 5 % and on 10 type of chemicals, the duties have been

completely eliminated.

But there are many things that are not being done properly by the company and that need a lot of

attention by the company management. Company is currently not completely fulfilling its

mission statement and objectives of providing welfare to the customers.

In their Mission statement they have mentioned that they are working for the betterment of the

humanity but if we look at the statistics we come to know that they are only spending 1 % of

their net profit on research and development which is for a pharmaceutical company is very low.

If they really want to serve the humanity in a better way they have to spend a lot on the research

and development so they can find new cures to those diseases that are still unburnable.

Highnoon is currently not focusing on a single product, so we recommend them to adopt the

product development strategy for further enhancement and betterment in existing products or

developing new products so that the sales can be boosted up. This will be beneficial for all the

stakeholders and also for the overall situation of the company. They are using resource based

model by focusing on core competencies that are considerably valuable, rare, costly to imitate

and well organized.


If we also have a look at financial part of the Highnoon, we can conclude that Highnoon needs to

improve their financial situations. Their all ratios are below the industry average. The main focus

of the Highnoon is to improve their asset turnover ratio, return on equity and return on assets

ratio. Improvement in these ratios will show that firm is using their equity and assets at full

capacity.

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