Engo Corporation by Mr. Abdul Hameed Anwar

8/16/2019 Engo Corporation by Mr. Abdul Hameed Anwar

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Prepared by

Abdul Hameed Anwar GDW2015138

Title

Analysis of Business Environment and Strategy of Engro Cororation !imited" A

#a$istani Comany

%ear #ages Do&ument format

201' (( )i&rosoft Word

Programme

*nternational E+e&utive )asters of Business Administration

,*E)BA-.2015.1'

University

/niversity of *nternational Business and E&onomi&s ,/*BE-

Supervised by

#rofessor !einen ang

Abstract

is study reort e+amines te usiness environment and strategy of a &omany in

#a$istan4 *t analyes its resour&es and &aailities and teir utiliation to suort usiness

and mar$eting strategies in te &ase of medium sied industry &omany4 An in&reasing ody

of literature emasies te strategi& &oi&es of &ore &ometen&ies6&aailities ased on

resour&es and te &omination of tese 7it mar$eting strategies4 Bot &ometen&ies and

&aailities need to e aligned to te usiness environment 7ere te &omany oerates4urter9 te &ometitive advantages at te mar$et la&e 7ere analyed against te

&ometitive environment 7ere te &omany oerate9 and teir de&isions of te &urrent and

future geograi&al lo&ation4 :arious study reorts on similar industry &ase &omany 7ere

studied4

e reort on te &omany emasied &loseness to te mar$ets9 good logisti&

net7or$ and large mar$et sie as te main sour&es of its &ometitive advantage4 e overall

reliaility9 good image and reutation of te &omany and its ;ualified and s$illed ersonnel

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7ere te most imortant fa&tors 7i& la&ed te &omany in te est &ometitive osition

against teir rivals4 =D te&ni;ues9 it &an old &ometitiveness in te industry and e+and its usiness in

oter &ountries for iger value added rodu&ts4

Contact information

Adul


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irst of all * 7ould li$e to give my gratitude to Almigty Alla for


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3.1.1. Political4444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444422

3.1.2. $conomical444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444422

3.1.3. "ocial4444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444423

3.1.&. ,ecnological444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444423

3.2. "8, (nalysis44444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444442(

3.2.1. "trengts444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444442(

3.2.2. 8eaknesses444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444442(

3.2.3. pportunities444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444425

3.2.&. ,reats4444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444425

3.3. "ummary4444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444442'

C. 0(44444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444442

(4 )ar$eting Strategy Design6 S# ,Segmentation9 argeting9 #ositioning-4444444444444444444444442

&.1. "egmentation44444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444442

&.2. ,argeting44444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444428

&.3. Positioning44444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444428

CH(P,$/' 9*4444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444430

*. Marketing "trategy Implementation: Marketing Mi;444444444444444444444444444444444444444444444430

*.1. Product in te Marketing Mi; o# $ngro oods44444444444444444444444444444444444444444444444430

*.2. Place in te Marketing Mi; o# $ngro oods444444444444444444444444444444444444444444444444444431

*.3. Price in te Marketing Mi; o# $ngro oods4444444444444444444444444444444444444444444444444444431

*.&. Promotion in te Marketing Mi; o# $ngro oods4444444444444444444444444444444444444444444432

C. 0'444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444433

'4 CC!/S*4444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444433

'414 eoreti&al *mli&ations44444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444433

0.2. Managerial Implications444444444444444444444444444444444444444444444444444444444444444444444444444444444444444443(

0.3. /esearc +imitations and uture /esearc )irections44444444444444444444444444444444444435

4 >eferen&es44444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444443

5


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!ist of Areviations44444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444443?

Anne+.A44444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444(0

Anne+.B44444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444(1

A4 Cororate Stru&ture of te Comany444444444444444444444444444444444444444444444444444444444444444444444444444(1

i. Board o# )irectors444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444(1

ii. $;ecuti%e Committee : Cie# $;ecuti%e ##icer 4444444444444444444444444444444444444444444444444(1

iii. "are Holders4444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444(2

i%.


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1. INTRODUCTION

1.1. Indstr!al!"at!on !n #a$!stan

*ndustry is one of te vital se&tors and ma$es te maor ortion of te e&onomy of te

&ountry4 e industry gained a great oost after te F*ndustrial >evolution4 e &ountries

7i& 7ere reviously relying solely on agri&ulture en&ouraged teir industrial se&tor4 is

s7it& over from agri&ultural to industrial se&tor as aid te ri&e to tese &ountries4 e

e+amles of develoed nations li$e Ameri&a9 Germany9 Great Britain9 Haan9 >ussia9 Cina

et&4 are efore us4 n te oter and te &ountries 7i& did not give 7eigt to te industry

are lagging eind4 Wit te develoment of industry national in&ome in&reased9 te livingstandard imroved9 emloyment oortunities in&reased and te investment in&reased4 ot

only tis9 ut tere 7as also a great rise in agri&ultural rodu&tion4 All su& develoments

oened ne7 vistas for te &ountries4 Countries of te 7orld &limed out of te overty and

e&ame self.deendent4

*ndustrialiation is lin$ed 7it te develoment of te industrial se&tor on a massive

s&ale in a so&iety i4e4 &anging te so&iety from an agrarian one to an industrialied nation4

is ro&ess involves te&nologi&al &anges9 7ere ne7 te&nology is develoed and used4

e *ndustrial >evolution 7as a great enomenon in te istory of te 7orld4 *t

started in England during te 18t &entury 7en ma&ines egan to rela&e manual laour in

many industries4 *t sread troug mu& of te 7orld starting in te 1?t &entury and is still

&ontinuing in undeveloed &ountries4 e 7ole s&enario of te rodu&tion altered 7it te

introdu&tion of te ma&inery4 )a&ines made te 7or$ faster and easier4 e rodu&tion

e+&eeded te demand of te items4 >esultantly te ri&es droed a&&ording to te suly and

demand teory4 Wit industrial develoment9 many oter se&tors of te e&onomy also

develoed4 *n sort9 te *ndustrial >evolution rougt unre&edented &anges in every ase&t

of life4

#a$istan got indeenden&e in 1?(4 At te time of artition9 #a$istan ad a negligile

industrial ase4 *t got only 3( industries out of total ?559 7ile remaining 7ere eld y *ndia4

Su& a small numer of industries 7ere not enoug for a ne7ly orn &ountry to fa&e te


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industrialied 7orld4 #a$istan ad to start from te s&rat& to develo its industrial se&tor and

stand on its o7n feet4 *t ad to ma$e te most of its limited resour&es in order to $ee te

a&e 7it te &anging trends of te 7orld4 Wit te assage of time #a$istan utilied itIs all

availale resour&es domesti& as 7ell as e+ternal for raid develoment of manufa&turing

se&tor4 #a$istan as no7 attained a fairly diversified ase in manufa&turing ranging from

essential goods to si uilding industry4 Domesti& rodu&tion of items su& as refined sugar9

steel9 fertiliers9 &ement et&4 as eled in imort sustitution and as saved sustantial

amount of foreign e+&ange4

1.2.Co%&an'(s )ac$*rond

ComanyIs story egins 7it one &omanyIs enterrising de&ision to strive aead and

invest 7en anoter ad o7ed out4 *n 1?59 #a$ Stanva& "an Esso6)oil oint venture "

stumled uon vast deosits ri& in natural gas in )ari 7ile ursuing viale oil e+loration

in Sind4 Wit #a$ Stanva& fo&used e+&lusively on oil e+loration9 te dis&overy sifted te

imetus to Esso 7i& de&ided to invest on te massive industrial otential of )ari gas field4

Esso roosed estalisment of a giant urea lant in Daar$i9 aout ten miles from te )ari

gas fields9 7i& 7ould use natural gas rodu&ed as its rimary ra7 material to turn out urea

fertilier4

al$s 7it te Government of #a$istan ore fruit in 1?'(9 and an agreement 7as

signed allo7ing Esso to set u a urea lant 7it an annual &aa&ity of 139000 tons4 Esso

rougt in state.of.te.art designJ &ommer&ially tried fa&ilitiesJ and a igly distinguised

ool of te&ni&al e+ertise to ensure a smoot start u4 otal investment made 7as /SK (')

"te single largest foreign investment in #a$istan to date ten4 e lant started rodu&tion

on ( De&emer 1?'8 "a fe7 monts late and 7it less tan 10 L over run on te original

udget4

o oost sales9 a full.fledged mar$eting organiation 7as estalised 7i& undertoo$

agronomi& rograms to edu&ate farmers of #a$istan4 As te nationIs first randed fertilier

manufa&turer9 te Comany eled modernie traditional farming ra&ti&es and oost farm

yields9 dire&tly ima&ting te ;uality of life for farmers and teir families9 and for te nation

at large4 armer edu&ation rograms in&reased &onsumtion of fertiliers in #a$istan9 aving

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7ay for ComanyIs randed urea &alled FEngro "an a&ronym for FEnergy for Gro7t4

*n 1?89 Esso e&ame E++on as art of an international name &ange4 e Comany

7as9 terefore9 renamed E++on Cemi&al #a$istan !imited4 *n 1??19 E++on de&ided to divest

its fertilier usiness on a gloal asis4 e emloyees of E++on Cemi&al #a$istan !imited

"in artnersi 7it leading international and lo&al finan&ial institutions "ougt out E++onIs

5L e;uity4 is 7as9 and eras still is9 te most su&&essful emloyee uy.out in

#a$istanIs &ororate istory4

Engro Cororation !imited 7as estalised in #a$istan in 1?'5 as a susidiary of

E++on !td ,/SA- ,Engro9 2015-9 mainly $no7n as a fertilier rodu&er and sulier9 ut

&urrently it is oerating in many oter areas as 7ell4 *n fertiliers9 as a &ore rodu&t9 te

&omany offers nitrogenous9 osate9 lended fertiliers9 and mi&ro nutrients9 su& as in&

sulate ,Engro9 2015-4 Comany as susidiaries troug 7i& it also oerates in &emi&al

terminal and storage9 #:C resin manufa&turing and mar$eting9 industrial &ontrol =

automation usinesses9 dairy food and o7er generation usinesses4 e &omany 7as

reviously $no7n as Engro Cemi&al #a$istan !imited9 ut in Hanuary 20109 in result of

eing &onverted into a olding &omany stru&ture9 it as &anged its name to Engro

Cororation !imited9 and no7 te &omany as e&ome #a$istanMs largest &onglomerate

involved in te usinesses from fertilier manufa&turing to food rodu&tion and o7er

generation ,Engro9 2015-4

Engro is one of te most dynami& and rogressive institutions in #a$istan4 *ts )antra

of FEnergy for Gro7t is 7ell reresented in te nature and usiness of its

Susidiaries4 /ndenialy9 te &omany as e&ome an i&on of augmentation and :alue

addition for its sta$e olders4 ey ave an oortunity to enan&e usiness6sales a&tivities

y understanding &ustomersI usinesses etter4 Caitalie on &ometitorMs 7ea$nesses and

target te mar$et oortunities availale to tem4 S&out for otential a&;uisition targets9 7it

detailed insigt into te &omaniesI strategi&9 finan&ial and oerational erforman&e4

1.2.1. Vision

o e&ome te remier #a$istani enterrise 7it a gloal rea& assionately ursuing

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value &reation for all sta$eolders4

1.2.2. Mission

ComanyMs mission is to gro7 its usiness in rofitale9 eti&al and sustainale 7ay4

Gro7t and sustainaility are asi& targets of te mission4

1.2.3. Hierarcy ! Corporate "tructure o# te Company


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1.3.2. Core %alues o# $ngro Corporation

)ain &ore values of Engro Cororation limited4

i4 Integrity) Et#ics* Engro sustain eti&al eavior and loyalty in all teir

a&tivities tat so7 teir &are for te a&ievement of te results4


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i+4 /un and En0oyment* Engro elieve tat for te &reative9 ealty and ig

erforming 7or$ environment te satisfa&tion and e+&itement and re&ognition

are te imortant elements4 Engro elieves tat aving fun in 7or$ is a great

e+erien&e4+4 Partners#ip and Teamwor1* eam is strengt of any &omany and tere are

ig erforming teams in Engro and tey retain uilding teams in teir

organiation so tat a good artnersi &an e uild4+i4 $evelopment and Individual growt#* Engro elieve in value and dignity of

teir eole and tey elieve tat tey must so7 rese&t for ea& oter sould

&reate an environment tat rovides oortunities to te individuals so tey

&an gro7 and rogress4+ii4 International focus and $iversity*or a&ieving te usiness goals and for

meeting te &ustomerIs needs 7e must ma$e stru&ture and aroa&es li$e tat

7ay and Engro al7ays value te differen&es in ra&e9 nationality9 gender9

ersonality9 &ulture and style of eole4

1.,.$ngro' ( )i%ersi#ied Conglomerate

e differentiated usinesses of Engro Cororation reresent te gro7t otential for

te &omany and its sta$eolders4

i4 Engro oods limitedii4 Engro ertiliers limited

iii4 Engro EO*)# rivate limitediv4 Avan&eon limitedv4 Engro #o7ergen limited

vi4 Engro :oa$ erminal limited

vii4 Engro #olymer and Cemi&als limitedviii4 Engro oods limited

!aun&ed in 20059 E! manufa&tures9 ro&esses9 and sells dairy rodu&ts9 ui&e9

i&e &ream9 and froen desserts in #a$istan4 *t is te se&ond largest rodu&er of ro&essed

mil$ in te &ountry4 E! as state.of.te.art ro&essing lants and an i&e &ream fa&tory in te

rovin&e of #una9 as 7ell as its o7n dairy farm in te rovin&e of Sind4 e &omany

emloys more tan 1900 eole9 in&luding 200 staff in rural areas4 E! is a maority.o7ned

,8L- susidiary of Engro Cororation !imited ,EC!-9 one of #a$istanIs largest

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&onglomerates 7it seven usinesses in a 7ide range of industries4 ter sareolders

in&lude individuals9 emloyees9 and institutional investors4 E! is listed on t7o sto&$

e+&anges in #a$istan4

1.-.$ngro’s Inclusi%e Business Model

E! see$s to uild strong9 long.term relationsis 7it small dairy farmers to ensure

te &omany as a stale and se&ure suly of mil$4


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on ele&tri&ity or a generator in off.grid areas4 Centers are on average 7itin t7o $ilometers of

farmersI omes so are 7al$ing distan&e or a sort ride y lo&al transort4 Ea& &enter &olle&ts

around (00 liters of mil$ er day4

Se&ond9 farmers 7o are far from an )CC &an sell mil$ to :illage )il$ Colle&tors

,:)Cs- ired y E!4 e &omany as ired over 1900 :)Cs in&luding emale :illage

)il$ Colle&tors ,:)Cs-4 E! trains tem in mil$ testing9 andling9 and ygiene ra&ti&es4

e &omany rovides :)Cs 7it asi& e;uiment su& as &olle&tion utensils9 a testing $it9

and re&ord $eeing registerJ tose 7o &olle&t large ;uantities are given &oolers and

generators4 :)Cs &olle&t mil$ regularly from dairy farmers in teir villages at te &omany.

set ri&e and after &ondu&ting te re;uired tests4 ey re&eive &ommissions ased on volumes

&olle&ted4

ird9 E! uses &ontra&tors and dodis 7o ur&ase mil$ from farmers and transort

it to an )CC 7ere it is tested4 Dodis are village.level door.to.door mil$ &olle&tors 7o

ur&ase and sell mil$ to a numer of uyers4 Contra&tors may ave teir o7n mil$ &olle&tion

net7or$s of dodis4 *n general9 ur&ase ri&es are mutually agreed9 farmers may re&eive

&as advan&es9 and tests are not &ondu&ted at te time of ur&ase4 )ore tan 3'0 tru&$s

7it insulated tan$s ten transort mil$ from )CCs to E! regional us and

tereafter to te mil$ ro&essing lants4

1.*.2. ,ransparency and $##iciency troug ,ecnology

E! as &reated a management information system to &olle&t9 transmit9 and

monitor real time data from its )CCs &alled te Engro )il$ Automation et7or$

,E)A-4 is name evo$es te /rdu 7ord iman9 meaning fait9 and signifies te trust.

ased9 fair9 and transarent relationsi tat E! see$s to uild 7it its suliers4

)il$ is tested and measured at an )CC at te time of delivery4 After

a&&etan&e9 a uni;ue magneti& &ard assigned to te farmer is s7ied at a oint.of.sale

terminal to enter te transa&tion in E)A4 /sing a G#>S &onne&tion9 data is transmitted to

E! staff to so tey &an monitor gains and losses in te value &ain9 otimie

logisti&s9 and advise on imrovements among oter areas4 E)A is finally used to

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fa&ilitate ayment via dire&t deosit to suliers or to )CCs tat ay farmers in &as4

#ayment s&edules &an e &ustomied ased on farmersI needs4

1.*.3. Impro%ed -ields troug ,raining and (ccess to Inputs

E! as estalised (0 agri.servi&e units staffed 7it 8 veterinarians and agrarians

7o te &omany trains to serve )CC &lusters4 Ea& unit serves an average of 25 farmers4

:ets rovide ra&ti&al training and guidan&e in areas su& as va&&ination9 ygiene9 and

feeding ra&ti&es4

E! is aout to laun& sos for dairy and agri.inuts for farmers at its 22 field

offi&es4 e &omanyIs roe&ts 7it /SA*D and CA>E *n&4 /SA are &reating liveliood

oortunities for 7omen y training tem in livesto&$ and dairy management4 ese emale

!ivesto&$ E+tension Wor$ers ,!EW- rovide servi&es to 7omen dairy farmers in&luding

tose in E!Is net7or$4 :)Cs are also trained troug tese rograms4 *n artnersi

7it te Asian Develoment Ban$ and a lo&al an$9 E! lans to e+tend 12.mont

7or$ing &aital finan&e and longer.term finan&e for ur&ase of &o7s and oter assets4

armersI loan reayments 7ill e dedu&ted from 7ee$ly mil$ ayments from E!4

1.-.,. Dr!ers for E/L(S Incls!e )s!ness Model0

A maority of dairy farmers in #a$istan rear 2.5 &o7sJ engaging and strengtening

small farmers underins E!Is aility to se&ure its mil$ suly4 *mroving and maintaining

mil$ ;uality re;uires training and deeer engagement 7it small farmers4 eed to e+and

domesti& mil$ ro&urement rater tan mil$ imorts as E! gro7s4 ver ?2L of mil$ is

rodu&ed y small farmers in #a$istan4 ese farmers rear t7o to five &o7s tat rodu&e

et7een 3.5 liters er day as against te 7orld en&mar$ of 25.30 liters er day4

Small farmers are disersed over undreds of tousands of $ilometers in rural areas

7it oor or limited a&&ess to mar$ets9 transortation9 and oter infrastru&ture4 is results

in a ig rate of mil$ soilage or loss of 15L4 urter9 farmers rely on middlemen to sell mil$

and re&eive unfair ri&es and ig interest rates for &redit4 Comanies ay transa&tion fees to

middlemen and re&eive mil$ of in&onsistent ;uality4 A rimary usiness driver9 terefore9

for E!Is in&lusive usiness model is te need to engage small farmers dire&tly for ra7

mil$ suly4 Se&ond9 E! re&ognies tat ro&uring mil$ troug middlemen 7ill not

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el te &omany imrove ;uality4 *nstead9 it needs to invest in farmer training to

ro&ure ;uality mil$ to deliver ig ;uality rodu&ts4 ird9 gro7ing demand for E!Is

rodu&ts re;uires te &omany to ram.u its mil$ suly4 o ensure staility and se&urity

of mil$ suly in te medium. to long.term E! re;uires a strong system to e+and

domesti& ro&urement4

1.-.-. Reslts of E/L(s Incls!e )s!ness Model0i4 otal revenues of K30 million and gross rofits of K845 million in 2013

ii4 #ro&uring mil$ from 3009000 small dairy farmersiii4 )ore tan 19800 mil$ &olle&tion &enters &overing around 159000 villages

E! egan oerations in 200' 7it a ro&essing &aa&ity of 23(9000 liters of mil$ er

day9 7i& as in&reased to over 148 million liters er day as of 20134 e &omanyIs total

revenues gre7 from K1'45 million in 200' to K30 million in 20134 e &omany e&ame

rofitale in 20109 and its gross rofits in&reased from K2 million in 2010 to K845 million in

20134

e &omanyIs sulier ase of small dairy farmers more tan douled et7een 2008

and 2013 to rea& 30090004 During te same eriod9 te total value of mil$ ro&ured gre7

from K55 million to K?0 million4 *n 20139 E! ro&ured 200 million liters of mil$ or ?5L of

its total suly from small farmers9 7ile te alan&e 7as sour&ed from te

&omanyIs dairy farm4 A small dairy farmer sulies an annual average of 19000 liters

of mil$ to E!9 earning aro+imately K(50 in sales revenue4 e &omany as also

estalised a vast ro&urement infrastru&ture 7it a field for&e9 (0 agri.servi&e units9 and

over 19800 mil$ &olle&tion &enters a&ross 2009000 s;uare $ilometers to &over around 159000

villages4

*n 20129 E! re&eived te G20 Callenge on *n&lusive Business *nnovation A7ard4 *n 20139

te Comuter 7orld


17/44

e oe&tive of tis study is to analye usiness environment and strategy of Engro

Cororation !imited and to investigate o7 te said &omany er&eives te usiness

environment &urrently in #a$istan4 *n arti&ular9 te study is to form an udated

understanding of te fertilier and dairy rodu&ts industry in te #a$istan 7it regard to o7

tis industry er&eives te usiness environment4 is study also evaluates o7 te rolems

and ossiilities resent in &omanyIs internal stru&tures and in e+ternal usiness

environment ave develoed during te last de&ade from te &omany standoint4

urtermore9 te study des&ries 7at $ind of &ore &aailities te &omany emasies9 and

o7 te &omany lans to develo its usinesses in future4

1.2.Researc3 4est!ons

is study addresses te follo7ing se&ifi& ;uestions

i4 Wat $ind of usiness environment and strategy 7i& is eing adoted y te

&omany oerating in #a$istanPii4 >easons for su&&ess of Business model of te &omanyP

iii4 Wat $ind of mar$eting6usiness strategies te &omany as and o7 te

resour&es and &ore &ometen&ies are lin$ed 7it tese strategiesPiv4


18/44

;uestions aout a se&ifi& toi&9 7ile te survey is aroriate 7en ans7ering 7o9 7at9

7ere9 o7 many and o7 mu& ;uestions aout a toi&4 Bot resear& strategies re;uired

7en te resear&er as little &ontrol over te eavioural events and 7en te events under

investigation are &ontemorary4 *n te instant &ase * ave adoted te &ase study resear&

metod9 7i& in&ororates te usiness strategies and &urrent develoment in te industry4

1.4.2. /esearc (pproac

e resear& metodology 7as e+lorative and des&ritive4 E+lorative resear&

tends to7ards loose stru&ture 7it te oe&tive of dis&overing future resear& tas$s4 *t is

useful 7en te resear&ers la&$ a &lear idea of te rolems tey fa&ed during te study4

Des&ritive resear& is aout te ;uestions 7o9 7at9 7en9 7ere and o7 of a toi&4 An

e+lorative metod 7as alied e&ause fe7 resear&es already done 7it regard similar

usiness environment and strategies4

1.6.rame6ork

1st &ater of tis study reort &overs te follo7ing areas

i4 e&tive of te Study reortii4 >esear& Nuestions

iii4 )etodiv4 Brief istory of industrialiation in #a$istanv4 ComanyIs a&$ground9 its :ision = )ission

vi4 Environment and Business of te Comanyvii4 Business model of te &omany

viii4 Business Strategies of te Comany

2nd

&ater deals 7it te literature revie7 se&tion4 e 3rd

&ater in&ludes te #ESand SW analysis4 Wile &ater 0( &overs te mar$eting strategy design se&tion 7i&

in&lude S# for a &omany4 )oreover9 &ater 05 in&ludes mar$eting strategy

imlementation se&tion i4e4 ( #s of a mar$eting mi+4 inally &ater 0' te follo7ing se&tion

i4 eoreti&al imli&ationii4 )anagerial imli&ations

iii4 uture resear& dire&tions

18


19/44

C7A#TER8 9:

:. L!teratre Re!e;e literature revie7 in tis &ater gives a&$ground e+lanations of te elements of

te resear& 7or$ su& as analysis of usiness environment and strategy of a &omany in

#a$istan4 is is also an overvie7 of literature and ast resear& 7or$ in related areas 7i&

rovides a remise for tis &urrent resear&4

o e &ometitive9 a &omany needs to ave a suerior erforman&e in &omarison

7it its &ometitors4 /sually9 suerior erforman&e is &onne&ted 7it suerior ;uality of

rodu&ts and servi&es9 or oter means of differentiation4 e se&ond otion is to gain su&

&ost.advantage tat fa&ilitates &ost.leadersi4 e tird alternative is to e a ni&e.&omany

and fo&us on a &ertain very small mar$et segment ,#orter 1?85-4 e &on&et of sustainale

&ometitive advantage may e seen as a fun&tion of te uni;ueness or diffi&ulty to imitate te

sour&e of tis advantage ,see e4g4 B:-9 Barney 1??19 #ralaad and B: defines availaility of resour&es . tangile9 intangile or uman . and teir

eterogeneous &omination in te formation of &ometitive advantage4 Wile te #orterIs

&ommonly alied frame7or$ is dominantly ased on te industry &ara&teristi&s9 te >B:

underlines te role of &omanyIs internal resour&es and is terefore more suitale for

analying eterogeneous grou of small.and medium sied &omanies9 as in tis study4

1?


20/44

igure 1,elo7-9 modified from Grant ,2002-9 roadly summaries our teoreti&al

frame of referen&e4 *mortantly9 ot te &ometen&ies and &aailities need to e aligned

7it te usiness environment9 7ere te &omany oerates9 in order to identify industry $ey

su&&ess fa&tors4

Competitive

Strategy Industry 1ey

Advantage

success factors

.rgani2ational

Capabilities

(ES.U(CES*

angile*ntangileelationsis et7een resour&es9 &aailities and &ometitive advantage

,modified from Grant 2002-

*mrovement in te &ometitive osition may also e sear&ed troug transfer or

enlarging oerations to a ne7 lo&ation4 e ne7 lo&ation may allo7 te &omany to gain a

iger mar$et sare troug in&reasing sales or lo7er rodu&tion &osts4 /nderstanding

&omaniesI resour&e ase is &entral to effe&tive ositioning of te &omany in te mar$et and

igligt imortant differen&es et7een &omany.se&ifi& and &ountry.se&ifi& resour&es

,ay and Smitee9 1???-4 #ye ,1??8- lists te main motivating fa&tors for &omanies to

invest in ne7 lo&ations as follo7s9 and 7e ave in&luded in arenteses some relevant

e+amles suitale for tis study as follo7s

i4 mar$ets ,sie9 gro7t9 e+ort latform oortunities-9ii4 resour&es ,ra7 materials and oter similar inuts-9

20


21/44

iii4 emloyment fa&tors ,7or$ for&e9 su& as availaility and ailities of 7or$

for&e9 7or$ing &ulture su& as reliaility and attitude to7ards 7or$ing9 and its

&osts-9iv4 finan&ial effi&ien&y ,&ost advantages9 free trade-9

v4 $no7.o7 ,emodied in te&nology- ,te&nology9 ailities9 ossiility to use

ne7 &omany to gain te&ni&al $no7ledge-

Sin&e MM*ndustrial >evolutionM industrialiation is regarded essential for raid

develoment of te &ountry4 e &ountries tat solely relied on agri&ulture ave remained

oor and underdeveloed9 7ereas te nations 7i& gave 7eigt to raid develoment to

industry a&ieved ig rates of develoment4 #a$istan at te time of artition in 1?( ad

negligile industrial ase4 Sin&e te division of te Su&ontinent9 te Government of #a$istanas een utiliing all availale resour&es domesti& as 7ell as e+ternal for raid develoment

of te manufa&turing se&tor4

#a$istan as no7 attained a fairly diversified ase in manufa&tures ranging from

essential &onsumer goods of &emi&als steel9 eavy engineering and a&eneMs and tool

industries4 Domesti& rodu&tion of items su& as refined sugar steel9 fertilier9 &ement et& as

eled in imort sustitution and as saved sustantial amount of foreign e+&ange4

21


22/44

C7A#TER8 9+

+. EN


23/44

of #a$istan &an e seen troug gross domesti& ur&asing o7er arity of K(988'42 in

20159 and GD# er &aita in&ome of K19513 in 2015 ,


24/44

As a develoing &ountry9 #a$istan needs te&nologi&al advan&ement in every se&tor of

e&onomy9 from ele&tri&ity generation9 road &onstru&tion9 ort and airort develoments9 data

ase stru&turing9 information te&nology rail7ay9 food industry9 oil and gas se&tor9 logisti&s

and many more4 or saving &osts and gaining finan&ial alan&e9 government is rivatiing

and out sour&ing mega roe&ts and multi industry se&tors4 Ese&ially in oil and energy

se&tors9 #a$istan needs uge investments4 Engrois ta$ing advantage of tese &ir&umstan&es

and as offered in sour&ing to te government in multi se&tors su& as a o7er ouse roe&t

7it te &ollaoration of government4 e roe&t is &alled MMar &oal o7er roe&tMM 7i&

is e+e&ted to rodu&e 1200)W ele&tri&ity for te &ountry using &oal reserves ,Engro9 2015-4

+.:."8, (nalysis

o79 ro&eed to &omreensive SW rofile of Engro Cororation !imited9 7i&

rovides an in.det strategi& analysis of te &omanyIs usinesses and oerations4

3.2.1. "trengts

Be&ause of its long time relation 7it te suliers and distriutors of te industry9

one &an loo$ at te follo7ing strengts of te &omany

i4 Engro is a strong estalised rand name in ertilier9 * and infrastru&ture

usiness4ii4 Engro is 7ell.$no7n in te oter arts of te 7orld9 so it &an easily attra&t

investors4iii4 #ersonal >elations 7it farmers in Engro ood se&tor4 Engro as gained a good

reutation among te farmers4 e farmers are igly ale to sell and sulyteir mil$ to te industry9 7i& is a ig advantage for te &omany4

iv4 #ositive resonse from &ustomers4 All te rodu&ts of Engro from teir first

year of laun& get a &ustomer attention and ave a good feeda&$ for a est

;uality of rodu&ts4 So Engro ood in 2012 &rossed 14( illion sales figures9

7i& so7ed &ustomer satisfa&tion uon its rodu&ts4v4 Strong &onsumer = rodu&t resear&4 e industry is doing good 7or$ on its

>esear& and Develoment ,>=D-4 e &omany as ired various gloal

resear& artners9 ese&ially for its Engro food se&tor9 su& as ACielsen9

)indsare9 HW Asiati& and )A>S mar$eting and advertising agen&ies to

2(


25/44

develo its future ortfolio4vi4 ird.Generation #lant4 Engro food limited as te tird generation /


26/44

!!!. +rd lar*est &rodcer of %!l$

#a$istan is te tird largest mil$ rodu&ing &ountry in te 7orld 7it te total

rodu&tion of 32 illion liters a year4 )il$ is te largest &ommodity from te livesto&$ se&tor

a&&ounting for 51 er&ent of te total value of te se&tor4

Also9 some oter oortunities are &omany as imortant enlargement oortunity due to

oulation gro7t9 ig uraniation9 and fle+ile government oli&y on food industry4 *t

also may merge 7it oter gloal usinesses to eliminate &ometitors4

3.2.&. ,reats

!. Co%&et!t!onEngro as a treat of &ometition9 ese&ially in food industry9 7it &ometitors su&

as estle and eort 201(9 availale at Engro4&om-4

+.+."ummary

#ES and SW analysis of te &omany igligt a good rose&t to understand

and evaluate a &omanyIs usiness environment9 strategy and internal assets4 *n tis regard9

Engro Cororation !imited is la&ed in a good osition4 us far9 as evaluated te &omany

olds a good osition in its ni&e4 As long as it olds &ontinuous imrovement9 y alying

various innovative and >=D te&ni;ues9 it &an old its &ometitiveness in te industry9 and

2'


27/44

e+and its usiness in oter &ountries and gro7 rodu&t line4

2


28/44

C7A#TER8 9,

,. Mar$et!n* Strate*' Des!*n> ST# ?Se*%entat!on@ Tar*et!n*@ #os!t!on!n*

,.1."egmentation

*t is diffi&ult for any one &omany to engage in mass rodu&tion9 mass distriution

and mass romotion for its rodu&t4 e &omle+ities arise from te roliferation of

advertising and distriution &annels and te ig &osts asso&iated 7it rea&ing a mass

audien&e4 erefore9 &omanies segment te mar$et so tat tey &an target te grou of

&ustomers 7o sare similar needs and 7ants4 e mil$ se&tor so7s a mar$et tat asomogeneous referen&es tat is te &onsumers ave similar referen&es4 ey 7ant mil$ to

e 7ite9 &arefully ro&essed9 and good for ealt and ones4 Qeeing tese tings in mind

Engro foods mar$et as een segmented4 e mar$eters at Engro oods ave ad a numer

of otions availale to tem 7en segmenting te mar$et for teir rodu&ts4

,.1.1. De%o*ra&3!c Se*%entat!on

Engro rodu&ts are not ounded to any arti&ular age9 gender or life&y&le stage4 e

rand is meant for all te users in iger uer or middle &lass families4 Even toug te

rand &alls for a small er&entage of an individualIs in&ome ut lo7er &lass 7ouldnIt 7ant to

uy te rand maye e&ause tey are ri&e sensitive or e&ause tey elieve lose mil$ is

etter tan ro&essed mil$ and as all te nutrients tat te ro&essed mil$ la&$s4


29/44

EngroIs rodu&ts ave targeted e+erien&es e&ause te &omany as given tem a ne7 set of

rand and so many 7ill ma$e teir first ur&ase e&ause tey 7ant to try someting ne74

lerIs ads also target elievers9 traditional &onservative eole 7it &on&rete eliefs4 e

ads for EngroIs so7 te eliefs of ealty life 7it ro&essed mil$ and lays on te

emotional ase&t more4

,.1.+. )e3a!oral Se*%entat!on

EngroIs rodu&ts ave een segmented on te asis of enefits tat &onsumers see$ in

te mil$4 *n tis &ase9 eole loo$ for a rand tat &an e used for all uroses from drin$ing

to tea 7iteners as 7ell to feed te animals4 e ads also so7 tat &onsumers sould

in&rease teir mil$ &onsumtion for e+amle 7it every tea tey sould use lerIs9 every

morning tey sould drin$ lerIs and everyday tey sould feed teir ets 7it lerIs

mil$4 ere may e some ard &ore loyal in te mil$ se&tor4 !oyalty may e to7ards su&

estalised rands as estle and


30/44

i4 #a&$aging of lerIs mil$ and l7ell in red &olor and lerIs &ream a&$ed

in urle &olor are ;uite different and distin&tive from te tyi&al green and

lue a&$ing used y oter &ometitors4ii4 e rand as een ositioned as an all urose mil$ tat is meant for

everyone9 ese&ially for tose 7o live life to te fullest9 en&e its tag line9 Fo

dil $ol $ay eetay ain uneen $ay liyay ai lerIs4 Engro foodIs al7ays

tries to &reate &ustomer intima&y tat is it fo&uses on satisfying te &ustomersI

unmet needs4 #ro&essed mil$ is seen as less la&$ing all te nutritionIs tat is

art of mil$ due to assing troug so many ro&esses4 But Engro foodIs

ositions itself as mil$ tat as not lost its nutrients4 e uni;ue selling

roosition for Engro foodIs is Sua Ba$air indagi 9 ut re&ently te

&omany &anged te /S# to Ho dil $ol $ay eetay ain uneen $ayliyay ai

lerIs4 Bot te tag lines ave a very ositive ima&t on lerIs image

e&ause of te emotions involved in ot te lines4 e mar$eters ave used

different ositioning for lerIs rodu&ts ey ave used te attriute

ositioning for lerIs mil$4 e main teme of te rodu&t is tat it is meant

for all uroses 7itout any user imagery4 lerIs ads also so7 attriutes of

mil$ su& as good for ealt4 ey used te enefit ositioning for l7ell4 e

rodu&t is ositioned as delivering te enefit of eling to redu&e 7eigt and

for ealty ones4 lerIs &ream is ositioned as good for a se&ifi& use or

ali&ation4 *n tis &ase te &ream &an e used to ma$e &a$e i&ings and

desserts loo$ great4 *t &an e said tat all te different stages ave een

erformed y te mar$eters 7it e+treme &are and resear&4

30


31/44

CH(P,$/' 9*

*. Marketing "trategy Implementation: Marketing Mi;

-.1.#rodct !n t3e Mar$et!n* M!B of En*ro /oods

Altoug Engro oods started its oerations9 using dairy rodu&ts li$e mil$ ut later it

in&luded many food rodu&ts under its rodu&t ortfolio4 *n order to meet te demands of its

ealt &ons&ious &ustomers9 it dealt in food items tat 7ere ealty and ad good nutritional

value4 Se&ial attention as een given to te taste and ;uality of te rodu&ts4 eir multile

rodu&ts in&lude items li$e te follo7ing

• !assi

• lavored mil$

• )il$ o7der

• ruit ui&es

• *&e &reams

• )il$

e rands mil$ items in&lude olerIs full &ream mil$ tat is &reamy in nature and

lerIs lite for ealt &ons&ious eole 7o tend to drin$ lo7.fat mil$4 e fruit ui&ers

in&lude Dairy omung and olerIs y.frooter4arang is te se&ial and &reamy mil$ o7der

7ereas te froen desserts are availale in &us and sti&$s4 lerIs &ream and olerIs tarr$a

are some of its oter rodu&ts4 e tarr$a is used as a se&ial si&e to enan&e any food item4

Altoug te i&e &reams are availale in various sies9 te oter dairy rodu&ts are availale

in mostly alf and one liter sies4 Engro oods also deals in anydrous mil$ fats tat are used

for various uroses li$e frying9 &oo$ing9 as rela&ement for fat in dairy rodu&ts9 as

ingredients in a$ery rodu&ts and for ma$ing i&e &reams and &onfe&tionary4 *ts rodu&t also

in&ludes unsalted utter tat is derived from te asteuried &ream of ot uffalo and &o74

31


32/44

or its international mar$et9 Engro oods as also started venturing in to various oter

food rodu&ts4 Besides te regular items9 te oter rodu&ts served are froen meat related

food items li$e tur$ey9 eef and &i&$en4

-.:.#lace !n t3e Mar$et!n* M!B of En*ro /oods

Engro oods is a&tively involved in te distriution of all its food rodu&ts4 *t follo7s

ot te dire&t and indire&t &annel of distriution4 /nder indire&t &annel Engro food

rodu&ts are availale at almost all te large and small.s&ale outlets and stores4 Even ig

rofile marts and so7rooms tat ave food item &ounters dislay te rodu&ts of tis

&omany4 is as e&ome ossile e&ause of te transorts o7ned y rivate firms4 e

usual &annel under tis s&eme in&ludes distriuter9 7olesaler9 retailer and ten te

&onsumers4

e dire&t &annel as e&ome ossile e&ause te &omany is selling teir rodu&ts

to te &onsumers dire&tly troug teir o7n ersonnel on &y&les9 tru&$s or tri&y&les4 e

distriution net7or$ is an e+tensive one so tat romt deliveries are ossile4 Engro oods

as set u its o7n dairy farms as 7ell as lants for mil$ ro&essing in Sai7al and Su$$ar4 *t

as aointed 7or$for&es for mil$ ro&urements and &reated deartments tat are vigilant in

its efforts to as&ertain te fresness of te rodu&ts4 e &omany &overs at least t7elve

regions and as nearly tree undred and fifty distriuters 7or$ing under it4

/nder its international e+ansion lans9 te &omany signed an agreement to uy te

Ameri&an food &omany Al.Safa.


33/44

e &omany as de&ided to $ee te ri&es fle+ile on a minimum and reasonale

s&ale9 so tat ea& and every se&tion of te &ommunity &an rea& to7ards tese rodu&ts4

!arge volume of sales yields larger rofits for te organiation4 Qeeing all its otions oen

te ri&es tend to flu&tuate to meet te demands of te &onsumers as 7ell as oter e&onomi&

fa&tors4 *n order to maintain its &ommitment to7ards roviding realisti& food ri&es te

&omany as ta$en admirale and a&tive stes so tat &utting of e+&essive &osts &an e made

ossile4

*n some &ases9 te &omany as also used a remium ri&ing oli&y 7ere te ri&es

are a it more tan te ri&es of lo&al availale rands ut are ;uite reasonale 7en

&omared to te international rands4 ese are for rand &ons&ious &ustomers 7o tend to

ur&ase rodu&ts tat rovide &ometition to foreign mar$ets4

-.,.Promotion in te Marketing Mi; o# $ngro oods

e mar$eting strategy of Engro foods is &onsumer &entri& and tis as made tem a

uge su&&ess in te food industry4 /nder its romotional strategy9 it as given se&ial

attention to its a&$aging and mar$eting4 e attra&tive and ig ;uality a&$aging is also

&olorful to ma$e it distin&tive and eye &at&ing4 etra a&$s are used for rote&ting te flavor

and fresness of dairy rodu&ts and tat to in distin&t &olors li$e urle9 orange9 green and

yello74 An Engro food rodu&t is easily re&ognied at a glan&e4

Engro foods re&ognie te &ontriution of a&tive advertising to ma$e ig sales4 e

vision of te &omany is FElevating Consumer Deligt World7ide and for tis urose9 it

as ta$en te el of rint media to igligt its rodu&ts in every noo$ and &orner4

Billoards magaines and ne7saers are an imortant art of teir strategy4 Besides tis9

tey ave &reated noti&eale ads tat are &olorful 7it &at&y tunes and made tem a art of

te ele&troni& media se&ially te television and radio4 Advertisements are also dislayed on

vei&les li$e te us9 tru&$s and trams4

33


34/44

C7A#TER8 9

. CONCLUSION

.1.T3eoret!cal I%&l!cat!ons

n te asis of te foregoing analysis of te Engro Cororation aout its mi&ro.

environment9 ma&ro.environment and finan&e9 rose&tive investors are invited to ma$e

investment in tis rogressive &omany of an emerging mar$et of te 7orld4 *nvesting 7it

Engro Cororation 7ill give investors an e+&etional oortunity to &annel teir ard earned

savings into one te fastest gro7ing organiations of #a$istan4 EngroIs diverse ortfolio of

usinesses and ime&&ale 7or$ eti&s guarantee tat all te investments are se&ure and

reliale4

* re&ommend tat Engro oods imlement te *nnovation to enetrate oen

mil$6loose mar$et strategy for te reasons des&ried aove4 is strategy as an immense

otential to rovide Engro ood 7it a resour&e to enter and gain mar$et sare of loose6oen

mil$ 7i& ma$es u ?1L of dairy mil$ industry of #a$istan 7ort aout /SD K2' illion4

*n te first ase of te imlementation9 Engro foods sould divest from some of oter

segments of te food industry su& as i&e.&ream segment 7ere it is &ometing against 7orld

largest i&e.&ream manufa&turer /nilever or it &an divest from its everage usinesses 7ere it

is fa&ing a stiff &ometition from &ometitors li$e #esi and Co&a Cola4 is divesture 7ill

rovide Engro oods 7it mu& needed &aital 7i& sould e invested in to >=D unit

under >=D division dedi&ated solely to rodu&t innovation to target oen mil$ industry4 o

imlement tis9 a fun&tional stru&ture sould e adoted so as to allo7 for a &oordinated

aroa& to in&rease te a&e of innovation4 Sin&e te fo&al oint of tis strategy is >=D

division9 it sould e suorted y all division4 Different division su& as >=D9 lant

oerations division sould ave an effe&tive &ommuni&ations &annel 7ere flo7 of

information su& e+&ange of ideas and feeda&$ ta$es la&e 7it ease4

Anoter maor &allenge tat Engro oods 7ill fa&e is attra&ting and sele&ting

;ualified team of s&ientists in #a$istan 7ere iger edu&ation in dairy te&nology is almost

non.e+istent4 Engro foods 7ill ave to ire mostly e+atriate staff or sele&t te est

&andidates from its ool of >=D staff to go overseas for advan&ed edu&ation in dairy

te&nology4 e time involved in te edu&ating a staff and ten imlementing tat edu&ation

to innovate a rodu&t is very long en&e iring a ;ualified staff from a&ross te gloe is a

3(


35/44

mu& etter otion4 After iring ;ualified ersonnel9 Engro sould resear& on innovation of

a rodu&t 7i& as an e+tended selve li$e /esear& and Develoment deartment is a &riti&al issue tat

imedes future rose&ts of Engro foods9 7i& is a 7olly o7ned susidiary of Engro

Cororation4 >esear& and Develoment deartment is e;ually imortant in te same

geogray 7ere te &omany oerates4 e deartment els te &omany to remain

relevant in te industry4 But Engro goods la&$s tis strengt in teir usiness e+osing

temselves to treats from te industry4

Wile innovation is te $ey &riti&al strategy of fast moving &onsumer goods industry9

>esear& and develoment deartment forms te industry rose&ts for future gro7tR9 says a

mar$eting analyst at te Annual general meeting of Engro food 7i& as een reorting loss

for te ast four yearsR4 Comany re;uires eole 7o ta$e mar$eting ideas and turn tem

into est selling rodu&tsR relies one of te oard memers in te meeting4 Dis&ussing

furter aout te &ontinued loss of te susidiary many oter fa&tors su& as iger fi+ed

&osts &ontriuted uge to te losses4 Some finan&ial analysts ointed out te main &auses of

ig fi+ed &osts 7ere lesser &aa&ity utiliation of te fa&tory 7ile te sales generated &ould

not &over te fi+ed e+enses4

ter less imortant &auses 7ere dere&iation &arged for te ne7ly a&;uired fi+ed

assets4 *nnovation in te rodu&t and &reativity in its mar$eting 7ould do te oR9 a to

management ersonnel adds4 ot only tere is a need for an international >=D deartment to

suort te fast a&ed &onsumer demands9 ut also ringing &reativity to mar$eting and

romotion y rea$ing te &latter to stay &ometitive is as imortant as te manufa&turing of

te rodu&t itself4

35


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*n tis era of severe &ometition9 tis really matters to stay in a&e4 But te need to

remain &ometitive re;uires mu& effort ese&ially 7en te industry as ig e+it arriers4

erating rofitaly in su& an industry e&omes a matter of survival4 Ese&ially 7en te

attra&tiveness in te industry is so fas&inated y te ig rofitaility and gro7t otentials

7it future rose&ts saed so 7ell9 industry gradually e&omes oulated9 te mar$et sare

&on&entrates and te rofit margin deteriorates4 A similar situation is ta$ing sae around te

7orld in ast moving &onsumer goods industry and to remain &ometitive9 good &are of

e+ternalities sould e ta$en4 E+ternalities tat for&e to innovate te rodu&t mar$eting and

romotions and e+ternalities tat for&es to &reatively enan&e your rodu&t line in te

usiness ortfolio4

.+./esearc +imitations and uture /esearc )irections


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&omany is otimisti& of te otential tat te &ountry olds4 Engro oods 7ill &ontinue to

live its urose.insired gro7t strategy and ring to te fore affordale and nutritious

rodu&ts tat guarantee 7olesome goodness to its &onsumers. o allo7 te &omany to

maintain fo&us on managing and imroving oerations during te &ommodity do7nturn9 it

rooses to restru&ture its alan&e seet troug issuan&e of referen&e sares9 sue&t to

sareolder aroval4

EG> is one of te most dynami& and rogressive institutions in #a$istan4 *ts

)antra of FEnergy for Gro7t is 7ell reresented in te nature and usiness of its

Susidiaries4 /ndenialy9 te &omany as e&ome an i&on of augmentation and :alue

addition for its sta$e olders4 ey ave an oortunity to enan&e usiness6sales a&tivities

y understanding &ustomersI usinesses etter4 Caitalie on &ometitorMs 7ea$nesses and

target te mar$et oortunities availale to tem4 S&out for otential a&;uisition targets9 7it

detailed insigt into te &omaniesI strategi&9 finan&ial and oerational erforman&e4 *n fa&t

EC#! is gro7ing y leas and ound and tey rove tat tey say FGro7ing 7it ride4

Based on te su&&ess story of Engro Cororation9 in te future te multinational

&omanies &an do teir usiness su&&essfully in #a$istan and it 7ill e enefi&ial for te

investors to invest in Engro Cororation !imited9#a$istan4

3


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2. References

i4 Engro Cor9 ,2015-4 Engro Corp4 onlineT Availale at tt66engro4&om A&&essed 2?

)ay 2015T4

ii4 Government of #a$istan !aour #oli&y 20104 ,2010-4 1st ed4 eoo$T Availale at

tt667774ilo4org6dyn6travail6do&s6??56GovernmentL20ofL20#a$istanL20!aour

L20#oli&yL2020104df A&&essed 2 )ay 2015T4

iii4 4 ,2002-4 Contemorary strategy analysis4 ourt Edition4 Blackwell Business4

551 ,(-9 15.384

i+4


39/44

L!st of Abbre!at!ons

CAG> Comounded Annual Gro7t >ate

DA# Diammonium #osate

EB*DA Earnings Before *nterest9 a+es9 Dere&iation and Amortiation

E#S Earning #er Sare

GD# Gross Domesti& #rodu&t

ate

QSE Qara&i Sto&$ E+&ange

!*B> !ondon *nteran$ ffered >ate

!G !i;uid atural Gas

)A>S )ortgage Assistan&e >elief Servi&es

#AC>A #a$istan Credit >ating Agen&y

#Q> #a$istan >uee

#:C #olyvinyl Cloride

%o% %ear on %ear

/


40/44


41/44

AnneB8)

A. Cor&orate Strctre of t3e Co%&an'0

i. Board o# )irectors

EngroMs Board of Dire&tors in&ludes one E+e&utive Dire&tor9 our *ndeendent

Dire&tors and ive on.E+e&utive Dire&tors4 e Board as te &olle&tive resonsiility for

ensuring tat te affairs of Engro are managed &ometently and 7it integrity4 ese are te

memers of te Board of Dire&tors

i4


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43/44

i%.


44/44

rogram9 ased on an annual ris$ assessment of te oerating areas4 e *nternal Audit

fun&tion &arries out revie7s on te finan&ial9 oerational and &omlian&e &ontrols9 and reorts

on findings to te Board Audit Committee9 Cief E+e&utive and te divisional management4

D!rectors

As at De&emer 319 201(9 te Board &omrises of one e+e&utive dire&tor9 four

indeendent dire&tors and seven non.e+e&utive dire&tors of 7om tree are e+e&utives in

oter Engro Grou Comanies4 e Board as te &olle&tive resonsiility for ensuring tat

te affairs of Engro are managed &ometently and 7it integrity4 A non.e+e&utive Dire&tor9

)r

Engo Corporation by Mr. Abdul Hameed Anwar

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