Strategic Management & Business Policy

Muhammad Rizwan

MUHAMMAD RIZWAN

Contents
ENGRO CORPORATION LIMITED................................................................................4
Introduction to Engro:................................................................................................. 4
History:....................................................................................................................... 5
From Esso to Engro:................................................................................................. 5
From EXXON TO ENGRO:......................................................................................... 5
HISTORY OF ENGRO CHEMICALS:............................................................................... 5
HISTORY OF ENGRO FOODS:....................................................................................... 6
Products of Engro Foods:............................................................................................ 7
Strategy Formulation Process:.................................................................................... 8
Environmental Scanning:............................................................................................ 8
SWOT Analysis:........................................................................................................... 8
Strengths:................................................................................................................ 8
Weaknesses:............................................................................................................ 9
Opportunities........................................................................................................ 10
Threats.................................................................................................................. 11
Mission Statement:................................................................................................... 12
Vision Statement:..................................................................................................... 12
Hierarchy structure of Engro Corporation limited:....................................................13
Scanning the Societal Environment:.........................................................................14
STEEPLE Analysis:..................................................................................................... 14

S - Social Factors............................................................................................. 14

T - Technological Factor................................................................................... 14

E - Economical Factor...................................................................................... 14

E - Environmental Factor.................................................................................14

P - Political Factor............................................................................................ 15

L - Legal Factor................................................................................................ 15

E - Ethical Factor............................................................................................. 15

Culture at Engro:...................................................................................................... 15
Values at Engro:....................................................................................................... 16
Core values of Engro Corporation:............................................................................16
Engro Businesses: (A diversified Conglomerate)......................................................17
Engro Foods limited:.............................................................................................. 17
Engro Fertilizers limited:........................................................................................ 18
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Engro EXIMP private limited:.................................................................................18

Avanceon limited:.................................................................................................. 19
Engro Powergen limited:........................................................................................ 19
Engro Vopak terminal limited:...............................................................................19
Industrial Analysis:................................................................................................... 20
Porters Five Forces Model:..................................................................................... 20
1.

Competitive rivalry within the Industry:..........................................................20

2.

Threat of New Entrant:.................................................................................... 21

3.

Availability of substitutes:............................................................................... 21

4.

Bargaining Power of Suppliers:.......................................................................21

5.

Bargaining Power of buyers:...........................................................................22

Swot Matrix:............................................................................................................. 23
Internal Factor Evaluation Matrix:............................................................................. 24
External Factor Evaluation Matrix:............................................................................25
Competitive Profile Matrix:....................................................................................... 26
BCG Matrix:.............................................................................................................. 27
Grand strategy:.............................................................................................................. 28
Conclusion:............................................................................................................... 29
References:............................................................................................................... 30

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ENGRO CORPORATION LIMITED

Introduction to Engro:
Engro corporation is Pakistans one of the largest amass (conglomerate) and its business ranges from
fertilizers to power generation. After it, for the overseeing of its business subsidiaries Engro chemical
limited converted to a holding company structure. And then two major changes occurred in Engro
chemical limited, it was renamed as Engro Corporation limited and transferred its fertilizer business to a
separate subsidiary, Engro Fertilizers limited.
Engro Corporation currently consists of seven businesses that include chemical fertilizers, industrial
automation, PVC resin, power generation, foods, commodity trade and a bulk liquid chemical training.
Engro Corporation limited provides a long term vision for the company and also overseeing the
performance of the its subsidiaries, it is also responsible for leadership development, allocation of capital,
human resource guiding, CSR activities, management of talent, control structures, legal & IT support,
control structures and leadership roles in public relations.
Engro is working continually towards its vision and has come a long way to becoming a premier Pakistani
company globally.
In the journey of Engro for becoming a profitable company and a growth oriented company, their
management structure has played an important role for creating an accessible and more transparent
organization.

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History:
From Esso to Engro:
In 1957 Pak Stanvac, an ESSO/Mobil endeavor in search of oil exposed Mari Gas in a small inaccessible
area in upper Sindh. Esso then reputable urea plant, after that Esso Pakistan Fertilizer Company Limited
was established. The nation first fertilizer brand Engro helped a lot to transfigure traditional practices to
intensification production in farm. As a result of these efforts ingesting of fertilizers was augmented and it
covered the way for the companys branded urea called Engro

From EXXON TO ENGRO:

As the part of International name change program, Esso became Exxon and company was renamed
Exxon chemical Pakistan limited. Exxon then decided to differentiate its fertilizer business on worldwide
level thats why the company name was changed to Engro chemical Pakistan limited.
Engro chemical Pakistan limited then started diversifying its self into other sectors as foods, energy, PVC
resin manufacturing and marketing, chemical shutting and stowing and industrial control and
mechanization.
In 2009 plans were to demerge fertilizer business into independent effective company. Engro fertilizer
business was cohesive to manage fertilizer business.
To replicate the change in the scope of edict and scale of operations, Engro Chemical Pakistan Limited
has been renamed as Engro Corporation Limited.

HISTORY OF ENGRO CHEMICALS:

In 1978, it was decided to rename the company from Esso Pakistan Fertilizer Company limited to Exxon
Chemical Pakistan Limited.
In 1991, Exxon decided to dispossess its fertilizer business on a global basis. The employees of Exxon
Chemical Pakistan Limited, in partnership with foremost transnational and local monetary institutions,
bought out Exxons 75% equity. This was at the time and perhaps still is the most successful employee
buy-out in the corporate history of Pakistan. Renamed as Engro Chemical Pakistan Limited, the Company
has gone from strength to strength, replicated in its loyal financial performance, growth of the
fundamental fertilizer business, and diversification into other businesses.

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HISTORY OF ENGRO FOODS:

Engro Foods Limited was legitimately launched as a fully owned subsidiary of Engro in 2004. To enter
into food business they use dairy products and the company started inaugurating processing units in
Sukkur and Sahiwal along with ice cream manufacture facility. Top quality brands like Olpers, Olwell,
Tarang, Omore and Owsum have been successfully propelled under the tiller of Companys dairy
products. To support these brands and their highest standards of quality, Engro Foods has financed heavily
in milk processing and milk collection substructure. And the company believes that the success of its
products will help the company to achieve its goals. And the company is aiming to be the giant of food
industry in Pakistan.

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Products of Engro Foods:

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Strategy Formulation Process:

Environmental Scanning:
Gathering information from outside & inside the organization and delivering to the key people
within the organization. The simplest way is through SWOT analysis.

SWOT Analysis:
Strengths:
As older being a brand of Engro foods, consumers can relate their image of Engro with Olpers.
Engro being a well established name in fertilizer industry and the information technology
industry. This means that the brand is well known and the costumer will have a well known
association with its product Olpers milk and can see it as a good quality product. As Engro is well
known all over the world, it can easily attract the investors from outside the country so that it may
be backed with other competitor companies like Nestle etc. it can also easily afford the costs for
the development and research of the Olpers having order to introduce any new product. It can also
distribute the brand through better channels because of its Long arm relation with the suppliers
and distributors of the industry.
Some of the strengths of Engro foods are:
Personal Relations with farmers
ENGRO has gained a god reputation among the farmers. The farmers get an opportunity to sell
their milk to the industry and to supply them milk which is an advantage and strength of Engro.
Positive response from customers
In first year of its launce it got customer attention and also got them satisfied by the quality and
taste

Strong consumer & product research

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The industry has done a very strong research regarding the consumer and the product before
launching their product Olpers done a strong consumer & product research before and after
launching the product. EFL has hired various global research partners like AC Nielsen,
Mindshare, JWT Asiatic and MARS marketing and advertising agencies to develop its future
portfolio.
Third-Generation Plant
Only Engro food limited has the third generation UTH milk plant in the country which uses bacto
fuge technology to eliminate virtually the bacterias and ensure premium quality and health.
Some other strength is:
Global distinction of Engro
professional dairy collection system
observance their quit standards high
concentric diversification
Good market share of Engro innovative and chemical
nonspecific variety name of Olpers
excellent repute of the companionship

Weaknesses:

Olwell TVC
Olwell ad which was based on western life style did not match the Pakistan's religious values.
They did not focused about the ethics, religious beliefs and cultural values of Pakistan and their ad
failed.
Owning Red Color
As the company has not owned its own color like all the other companies like Nestle, which uses
green color and that of haleeb which uses blue color. So it might be difficult for the customers to
recognize their product in a super market store. Therefore the company must focus for a color to
use in its products for better strategic alliances.
Low Quality Milk
As Engro foods limited is not having its own dairy farms has to collect milk from different farms,
it collects milk from 40 different centers which might be sometimes of low quality as you cannot
trust any other if you are not having your own farms.
Packaging
As tetra pack is the only option available to Olpers because it is having monopoly in the
packaging sector in Pakistan. Which must cost them high and it might increase the production
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cost.
Milk anthology & giving out costs
As the only milk processing facility is situated in sindh whereas 34 out of 40 milk collection
centers are located Punjab. Which increases the collection and distribution cost as because of the
chances of getting the milk spoiled because of too much traveling time?

Narrow brand portfolio

It also has a drawback that it has narrow portfolio as compared to the other companies like Nestle
and Haleeb foods having a much diversified dairy product line.
Some other weaknesses are:

High antagonism in price aware segments of UHT market.

Capacity is not exploited up to the mark
Not been abling in fulfilling demand of milk market.

Opportunities
Increased funding by Government
As the govt has given notice about increasing the funding for farmers .which might be an
opportunity for the farmers to better able to store the milk for longer period of time.
Increased consumption of PLM
As there is an increased consumption of PLM that might result in an opportunity for accelerated
growth and also for the company because each competitor wants to increase the milk penetration
and also for the consumers through different advertising media.
Awareness
As the literacy rate is increasing the awareness about health and hygiene issues might increase so
by advertising Engro might led to increased processed milk consumption.
3rd largest producer of milk
Pakistan is the third largest milk producing country in the world with the total production of 32
billion liters a year. Milk is the largest commodity from the livestock sector accounting for 51
percent of the total value of the sector. This production might increase due to the government
taken steps.
Some other opportunities are:
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humanizing Economy
Population.
High urbanization.
High literacy rate.
Stretchy government policy for food industry.
Have important enlargement opportunity
Has adequate capital to get bigger.
Has the latent to innovate and discriminate the company's products to keep up a
spirited advantage
gifted of getting bigger into other markets of the world

Threats
Competition
A threat of competition is there for Engro foods as for there already exist competitors like Nestle
and Haleeb which are already in the eyed of the consumers and gaining attention of consumers
eliminating the competitors might be difficult for the company because these brands are there in
the industry for long time. Also if any new company enters into the milk industry that might also
affect the company.
Perceptions and Price Differentials
A threat to the company might be the consumers perception and the price differentials. It is very
important that the Olpers must come up to the expectations of the consumer so that they might
pay the demanded price of their product. And also that the other competitors and forces may try to
eliminate Oilerss. As it has competitive competitors like NESTLE and HALEEB. These
competitors may develop marketing strategies to eliminate The Engro foods Olpers. Which might
create an economic downturn in the business cycle?
Some other threats are:

Far above the ground price rises rate.

Low purchasing power.
Diminish in GDP expansion rate.
Mounting attention rates.
Falling speculation.
Recessionary period in business cycle
Rivalry with nestle, Engro foods and the new entrants.
Engro foods is now in front of are augment in sales tax

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Mission Statement:

Build Branded food business to improve quality of life by offering

tasty, affordable and highly nutritional products to our consumers while
maximizing stake holders' value

Vision Statement:

Aims at transforming the company within the next five years into first
a national food industry giant, then into a regional force and finally into
a global player

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Hierarchy structure of Engro Corporation limited:

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Scanning the Societal Environment:

STEEPLE Analysis:
None of the corporation lives in a space; the environment affect the way that strategy is both
planned and carried out and changes in the environment also might cause the changes in the
strategy. The environmental change may also be the reason of becoming failure for the strategic
plans. The Engro food has to face such kind of dynamic environment as being in the market
accepting the challenges of the external and internal forces and the environment.
Some of the factors are:

S - Social Factors
As the literacy rate is increasing and the awareness among the people is increasing people are
getting well aware of that what is good and what is wrong for them also the UHT milk treatment
of Engro food has helped to bring about a change in life style of the Pakistani People. Also as the
literacy rate is increasing the attitude of people is also changing so that to use UHT milk instead
of open Gwala milk.

T - Technological Factor
The creative use of new technology often gives the competitive advantage this kind of
environment does not change quickly but it brings out disastrous changes for the industry. The
administration of Engro foods claim that they have the latest technology of milk processing and
they also say that there way is much different than its competitors. The idea being this was to
provide consumer with the best hygienic and quality milk and other products which are not
manufactured by any other company.

E - Economical Factor
One of the economical factor and an advantage to the Engro foods is that there is no sales tax on
milk. Which is also a plus point for the company? Some problems are also faced in the economy
as the milk production is seasonal and keep fluctuating. So special steps must be taken to keep it
working smoothly. Haleeb also dont
Charge interest on its products which also makes a huge difference economically.

E - Environmental Factor
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Environment affects the way a strategy is planned and carried out and also affects the strategies
when implemented. Engro food also has to face such sort of dynamic environment. They have to
face all kind of external and internal environment and also have to cope up with them. The
environment of Engro food is very friendly as to match up with the employee requirement so that
they could deal with the problems effectively and efficiently. There are few seasons in
Which Engro food has fluctuated sales.

P - Political Factor
Engro foods follow the rules and regulations by the government and therefore also abide by the
government laws for trade policies and complete its responsibilities in a better manner. They are
also not actually bound by any trade agreements. They also set their strategies according to the
rules and regulations imposed by Government.

L - Legal Factor
Engro food always follows the rules and regulations given by the government. They also keep
their information system up to date about the happenings in the milk industry. They also have
some legal laws like:
They dont believe in under 18 working because they consider it an ethical and against the
environmental regulations and because they follow the consumer protection regulations etc.

E - Ethical Factor
Engro foods follow all the laws and regulations opposed by government. Also they do not sale on
credit because they consider it unethical and against the religious rules and regulations.

Culture at Engro:
The people of Engro are a special part of Engro Corporation. Engro culture is persistent and projectile and
with the emphasis of their core values and honesty to the employees. The leadership, diversity, excellence
and team work is promoted by the work environment of Engro. Engro is determined to keep their culture
open and transparent and widespread for its employees.

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Values at Engro:
The leadership culture at Engro is supported by their policies and unique system that ensures open
communication. Engro promoted the environment of employee and partner privacy, and ensure about the
safety and wellbeing of employees.
Engro never forget that what its stands for. The core values of Engro are the basis or everything that is
from simple decision making to the business convoyed for spot awards and gratitude.

Core values of Engro Corporation:

There are 12 core values of Engro Corporation limited.
1. Integrity& Ethics: Engro sustain ethical behavior and loyalty in all their activities that show
their care for the achievement of the results. Highest integrity is their best interest and they
maintain the highest standards and professionals.
2. Health, safety& environment: Engro always ensured the safety of their people, customers,
neighbors and visitors and for this they use their resources and operations smoothly. It is the
belief of Engro that their health, safety and environmental responsibilities have extended beyond
their own facilities.
3. Quality improvement: For the ongoing success of Engro the persistent commitment and quality
to the continuous improvement is the most important factor. Quality in all we do is the motto
of Engro Corporation.
4. Innovation: in any field of business, innovation is very important. Engro makes sure of an
environment that provides paths towards the creative thinking and make possible for its people
to work that generated ideas as Engro happily accept challenges to its status quo.
5. Leadership: People skills are required for inspiring a group or any organization and for it Engro
set high goals and surly achieve them. Engro have great leaders at their company that are very
energetic, enthusiastic and loyal.
6. Community and External involvement: The industrial organizations must be trusty and the
trust and confidence can be earned by different ethical ways. The performance of the Engro, its
direct and open communication and the active involvement in the communities earned that trust
and confidence.
7. Open and Candid communications: communication must be gracious, open and plain spoken
that enables people to do their jobs effectively. And this type of communication is valued at
Engro that contribute to their decision making process.
8. Enthusiastic search of profit: The important basis of our career security and personal growth
depends on the distribution of responsibilities to the shareholders of Engro for improvement of
the long-term profitability and growth of the Engro Corporation.

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9. Fun and Enjoyment: Engro believe that for the creative, healthy and high performing work
environment the satisfaction and excitement and recognition are the important elements. Engro
believes that having fun in work is a great experience.
10. Partnership and Teamwork: Team is strength of any company and there are high performing
teams in Engro and they retain building teams in their organization so that a good partnership
can be build.
11. Development and Individual growth: Engro believe in value and dignity of their people and
they believe that they must show respect for each other should create an environment that
provides opportunities to the individuals so they can grow and progress.
12. International focus and Diversity: For achieving the business goals and for meeting the
customers needs we must make structure and approaches like that way and Engro always value
the differences in race, nationality, gender, personality, culture and style of people.

Engro Businesses: (A diversified

Conglomerate)

The differentiated businesses of Engro Corporation represent the growth potential for the
company and its stakeholders.
Engro Foods limited
Engro Fertilizers limited
Engro EXIMP private limited
Avanceon limited
Engro Powergen limited
Engro Vopak Terminal limited
Engro Polymer and Chemicals limited
Engro Foods limited

Engro Foods limited:

In 2004 Engro launches its totally owned subsidiary Engro Foods limited. Engro used dairy as a striding
stone for entering in the food business and established the state-of-the-art processing units in Sukkur and
Sahiwal and also established ice-cream production unit in Sahiwal. Under the wheel of companys dairy
products Engro successfully launched its top quality brands like Olwell, Tarang, Olpers, Owsum and
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Omore. For the support of these high quality brands Engro financed heavily in milk processing and milk
collection infrastructure.
After the success of Engros dairy products, to which Engro customers are testify, Engro foods now
planning to expand its business beyond the dairy products and in 2011 Engro started its sales of rice from
its own rice processing plant.
In North America and Canada, Engro food is entering in Halal food businesses through its planned
triumph of Al-Safa Halal and this will be foods first International endeavor.
Heartening consumer delight worldwide is Engros food vision and the companys objective is to
produce greater revenue from its foreign operations.

Engro Fertilizers limited:

A foremost fertilizer manufacturing and marketing of Engro Corporation is Engro Fertilizers limited that
is a wholly owned subsidiary with the products focused on balanced crop nutrition and increased fruitage.
Engro Urea, Engro Zorawar, Engro DAP, Engro Zarkhez, and Zingro are some of Engros primary and
secondary fertilizers.
Through All-encompassing market development activities and providing high quality fertilizers, Engro
Fertilizers has developed a reliable customer base in overall Pakistan. A premier brand and nationwide
existence of company guarantee sellout production. For balanced fecundity and improved farm yields
Engro also sells phosphate fertilizers.
The company achieved mechanical completion and started experimental production of its urea extension
project in 2010 at Dharki which is the worlds largest single train urea-ammonia plant.

Engro EXIMP private limited:

Engro Corporation limited establishes its wholly owned subsidiary Engro EXIMP private limited in 2003.
Company trades in product fertilizers like MAP, DAP, SOP and MOP, and micro nutrients also like zinc
sulphate. Then Engro EXIMP supplies these fertilizers as raw materials to Engro fertilizer Zarkhez plant
for industrial unified compound fertilizers. Addition to these Engro also markets them locally. The largest
trader of phosphates and potash fertilizers are Engro EXIMP limited, in Pakistan for the last five years
and also expanded into bucolic trade of fertilizers.
Engro EXIMP has established a fast growing basmati rice trading business to enlarge into new and
profitable swapping avenues. Engro acquire high quality basmati paddy from farmers and export finished
basmati rice to B2B customers crosswise the world. Engro is starting up a large and state-of-the-art rice
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processing mill, as a part of this creativity, in heart of the basmati growing area in Pakistan. In the late
2010, mill has started its operations.

Avanceon limited:
Avanceon limited is a leading global automation business as an Engro subsidiary. It delivers process and
control solutions with subsidiaries functioning in UAE and the United States. The Avanceon limited also
offers power and energy management conformed solutions and as well as high end software that
assimilate creation and business applications. Avanceons driving force as its vision to develop coherent
property to expand the energy footprint of the manufacturing industry.

Engro Powergen limited:

As a fully owned subsidiary Engro Powergen was amalgamated in 2008, to develop power projects in
Pakistan. In this way power shortage can be reduced in the country and earn a reasonable return for
shareholders.
A joint venture between government of Sindh and Powergen is the Sindh Engro Coal mining company
limited. The company aims to utilize the bountiful reserves of coal in Thar Deserts for power generation,
although the projects in its early stages of technical and economic workability assessments.
Through exploring and applying cleaner, efficient and economic methods of power generation, Engro
powergen trails to reduce power shortage in the country. In this chase wind, hydro and solar power
projects are being actively appraised as alternative energy options for Pakistan.
Another Engro Corporation subsidiary, Engro Energy limited, has developed a 220 MW plant in Qadirpur.
This will be Engros first independent power project which will utilize marinate gas currently being
broadening from the Qadirpur gas field thus helping reduce carbon emission. This will be the first Green
power plants in the country.

Engro Vopak terminal limited:

An innovation in chemicals and LPG storage, Engro Vopak terminal limited is a company of Royal Vopak
of the Netherlands and the Engro Corporation. The world class services are provided by Engro Vopak to
the growing chemical and petrochemical industry of Pakistan. The company submissions storage and
handling solutions for liquid, oil products, vegetable oils, bio-fuels, gaseous chemicals, petrochemicals
and liquefied natural gas.

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Industrial Analysis:
Porters Five Forces Model:

1. Competitive rivalry within the Industry:

Rivalry is intense between the competitors within the food industry as companies
like Nestle, Haleeb, and Engro foods are competing well within the industry with
each other. As the difference between one food company and the other is not that
great so in such a scenario the company who will have better cost structure,
efficient operations & minimum cost will be able to attract the customers towards it
and can grab the market.

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In case of Engro foods competitors like haleeb & Nestle are consistently involve in
their homework in order to capture the market and in attracting the customers
towards them. Competitor like goodmilk is also adding competition to the industry.

2. Threat of New Entrant:

A new entrant is a potential competitor which could be the threat for existing companies. But in
order to enter in the market the new entrant have to consider the entry barriers which prevents
from entering into the industry.
Entry Barriers:

Capital requirements:
In order to produce the packed products it requires a big investment in terms of finances, human
resources, technicalities etcso these prevents a new entrant from entering to the industry.
Because it is not easy to do.

Economy of Scale:
A new entrant has to operate on large scale basis because it forces the new entrant to operate on
large scale basis or either to accept the cast disadvantage. As the existing firms in the industry
have achieved their breakeven & are operating beyond that. As the new entrant might have to
suffer with the scale related barriers not only in manufacturing the products but in the marketing
& advertisement as well and all other related issues.

Product Differentiation:
This one also presents a entry barrier for the new entrant as in the industry the competitors like
Nestle & Engro foods are differentiating their products. So this could be a difficult task for a new
comer to the industry.

3. Availability of substitutes:
Substitutes are available in the food industry as there is not much difference
between the companies operating in the food industry. As all the companies are
offering similar type of products. So if one company increases the price of their
products the customers can switch to the products & services of another company.
So this also have an impact at the attractiveness of an industry.

4. Bargaining Power of Suppliers:

Suppliers also do affect an industry by increasing the prices of their supplies or by decreasing the
quality of the products they are supplying, but in food industry the bargaining power of suppliers
is not that great due to the following reasons:
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Number of Suppliers:

As milk is a standard commodity so is easily available from number of suppliers like milkmen &
farmers. So suppliers are not the big issue for the companies currently available in the food
industry. As number of suppliers are available & those are willing to sale their milk.

Importance of Volume to the Supplier:

Suppliers also have less capacity to bargain as they also have to sale their milk and they are also
looking someone to purchase. And another reason is that the company is buying in bulk
purchase.

5. Bargaining Power of buyers:

Buyers also can affect attractiveness of an industry as they are asking for lower prices and
improved quality of the products. While if we talk about the individuals they dont pose much of
the bargaining power to the buyers while large clients like airlines & retailers can affect heavily
as they are purchasing in bulk amount. And they do have a bargaining power in terms of food
industry. A vital reason of low bargaining power is that:

Backward Integration:

The main reason behind is that the buyers & distributors can integrate and manufacture the
products by their own as it requires much resources. So the limitation of resources limit them &
the buyers have low bargaining power in the food industry.

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SWOT Matrix:

In order to remove the criticism of the SWOT matrix IFAS & EFAS are performed so
that company could analyze their Strengths, Weaknesses, Opportunities & Threats.

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Internal Factor Evaluation Matrix:

Key Strategic
Weights
Ratings Weighted Scores
Factors
Strengths
Brand Image

0.08

0.32

Growing Sales

0.03

0.24

Market Share
Distribution Channel

0.05
0.08

3
4

0.15
0.32

Product Quality

0.07

0.21

Capacity

0.08

0.32

Innovation

0.04

0.12

Customer Oriented
Qualified Work force

0.02
0.01

3
3

0.06
0.03

R&D
Business without Interest

0.05
0.02

4
3

0.2
0.06

Exporting

0.06

0.09

Weaknesses
Local Company
Centralized Decisions

0.05
0.09

1
2

0.05
0.18

No Sales on Credit

0.06

0.12

High Price
Uncertain Economic &
Political Conditions

0.05
0.03

2
1

0.1
0.03

Market Demand
Striker Terms And
Conditions

0.05
0.03

2
1

0.1
0.03

Promotion

0.05

0.1
2.83

Total

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External Factor Evaluation Matrix:

Key Strategic Factors Weights

Ratings

Weighted
Scores

Opportunities
Raw Material
Availability

0.1

0.4

Market
Capitalization

0.08

0.24

Diversification

0.07

0.14

Exports

0.07

0.21

Haleeb Bottle

0.04

0.04

Credit Policy

0.06

0.12

Joint Ventures

0.06

0.18
Threats

New Entrants

0.08

0.24

Sales Tax

0.05

0.1

Changing Season

0.06

0.18

Suppliers

0.07

0.21

Economic Conditions 0.05

0.1

Price Sensitive
People

0.06

0.12

Gawala Milk

0.1

0.4

0.1

Small Target Market 0.05

Total

2.78

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Competitive Profile Matrix:

Critical Success
Factors

Weigh
t

Rating

Score Rating

Score Rating

Score

1
Research &
Development

0.08

0.24

0.24

0.32

2
Advertisement

0.09

0.24

0.36

0.27

3
Position

0.09

0.27

0.27

0.27

Market Share 0.07

0.14

0.28

0.21

Product

0.08

0.24

0.24

0.24

0.11

0.33

0.24

0.22

Management 0.10

0.30

0.40

0.30

Financial

4
5
Quality

6
Price
Competitiveness
7

8
Global
Expansion

0.08

0.24

0.32

0.24

9
service

0.06

0.18

0.18

0.12

0.09

0.27

0.36

0.27

0.07

0.14

0.21

0.28

0.08

0.24

0.32

0.24

Customer

10
Sales And
Distribution
Network
11
Capacity
12

Production
Alliances

Total

1.0

2.76

3.51

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BCG Matrix:

Stars:
Engro foods is in Stars which means it has high growth rate & high market Share, has been
generating income for the Engro corporation.

Cash Cows:
They are at the maturity stage & dont have much chances of growth though they have high
market share. Engro fertilizer of Engro Corporation have been a cash cow for the corporation.

Question Marks:
The products lying in this category have low market share but high growth is expected from this
category of products. In case of Engro corporation Engro polymer & chemical are question
marks for the company.

Dogs:
These have low growth & low market share. Company have to think about that whether they
want to invest in this category or to stop their operations. Engro Powergen falls in this category
in case of Engro Corporation.

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Grand strategy:

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Conclusion:
As the Engro Corporation is Pakistans biggest company with different businesses currently in operation
is also now recognized globally due to some of its global projects. Engro is always busy in doing different
projects which involve its professionals, technicians, engineers, and even labor employees equally which
is the best way to increase the motivation of employees. Engros culture and its values show that the
people are a special part of the company and employees are considered a great asset and Engro always
supports the leadership environment as well as team work in the company which promotes excellence,
diversity and motivation of the employees, Engro also promotes friendly environment with partner
privacy and the candid communication between employees in the company.
Thus it is concluded that Engro Corporation provides good working environment to its employees giving
them healthy and safe working conditions, take care of their employees professional and personal needs,
encourage the team work of its people and train them for becoming great leaders in the company.

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References:
o Official site of Engro Corporation limited
o Google
o Engro Rawalpindi

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