Part: A:

Name of Firm:
Engro Corporation.

Engro Corporation is a Pakistani multinational corporation based in Karachi with subsidiaries

involved in production of fertilizers, foods, chemicals, energy and petrochemicals. Engro
Corporation Limited ab initio introduced with Engro Chemical Pakistan which
quickly built their growing in chemical industry and after few old ages Engro
Chemical go Engro Corporation Limited by doing diversified investing in differen t
sector like Foods, Energy, Fertilizer and Business solutions. It started operations in
1957 as an Esso/Mobil articulation venture which discovered the Mari Gas field
near Daharki.

Engro nutrient is now going the biggest and fastest turning company in Pak istan.
From the beginning boulder clay day of the month Engro Foods Limited 100 %
owned auxiliary company of Engro Corporation. Engro Foods Limited operations
began in the twelvemonth of 2006 and within 5 old ages company started to mount
the ladder of growing quickly. It has manage to be the market leaders in Ultra High
Temperature ( UHT ) Industry at the terminal of 2010 and has launched multiple
new merchandises including Ice Cream, Flavoured Milk, Fruit Juices and Milk
Powders, that show great possible for future. In order to endorse these merchandises
and to accomplish high quality criterions Engro Foods Limited made backward
integrating scheme in which they to a great extent invested in milk processing and
aggregation substructure. The Company has inno vated by embarking out of the
dairy sector and stepping in the Beverage Industry by establishing Olfrute and ice
pick industry by establishing Omore.

The Company is besides come ining into the planetary markets. Its first mission is
to pull off a Halal nutrient concern in North America known as Al -Safa, which was
late acquired by Engro Corporation at a entire spending of 6.3 mn dollars.

Engro Fertilizers Brands:

At Engro Fertilizers, when they talk about their dying commitment to deliver the highest
standards of quality, their focus goes well beyond how their brands will fare amongst their target
audience to how they will impact customers lives by enriching their soils and crops to maximize
yield, and this is precisely why they strive to combine innovation and quality with customers’
needs and expectations.

1: Engro urea
2: Engro DAP
3: Engro NP
4: Zingro
5: Engro Zarkhez
6: Engro MOP
7: Engro SOP
8: Engro SSP+Zinc
9: Engro Ammonium Sulphate
10: Zabardast Urea
Engro Food:
Engro Foods is a Pakistani food and beverage company. Its product portfolio comprises;
. Olper’s
. Olper's Lite
. OMORE
. Dairy Omung
. Olper's Lassi
. Tarang.

Engro Energy and Petrochemicals:

Engro Polymer & Chemicals Limited (EPCL) is the only fully integrated Chlor-Vinyl chemical
complex in Pakistan. It is a subsidiary of Engro Corporation, involved in the manufacturing,
marketing and distribution of quality Chlor-Vinyl allied products and PVC under brand name
‘SABZ’.

Location of Engro Corporation:

Engro Corporation Limited, 8th Floor, The Harbor Front Building, HC # 3, Marine Drive, Block
4, Clifton, Karachi, Pakistan.

Retail stores/Distributors:

Manufacturer
(Engro Food) Distributors Retailers

Final consumer
EFL’s having an intensive distribution network for its product olpers in the market. This product
is available in all places in Pakistan. In terms of distribution, having kicked off simultaneously in
20 cities of Pakistan. The launch has been ambitious and currently Olpers is available in 80 cities
across Pakistan. EFL has divided Pakistan into 5 regions for milk distribution:
1. Karachi
2. Lahore
3. Islamabad
4. Peshawar
5. Multan

Olpers having its 350 distributors all across Pakistan. They distribute the products to retailers
who are engaged to provide products to ultimate end users.

Profile of CEO:
Ghias Khan is a 4th President and CEO of Engro Corporation. Ghias khan holds a Master’s
degree in Business Administration from the institute of Business Administration, Karachi. He
joined the board of Engro Corporation in 2015. Most recently Mr. Khan was the executive
director of Dawood Hercules, one of the largest holding companies in Pakistan. At Dawood
Hercules,, he participated with BOD’s in developing a digital first division and strategic plan to
guide the organization and had oversight of corporate governance , communications , external
relationships and special projects integral to growth. Mr. Khan served as a chairman of Elixir
Securities from 2011 to 2014.

Vision:
To be the premier Pakistani enterprise with a global reach, passionately pursuing
value creation for all stakeholders.
Mission:
To provide and integrated material solutions that are value-adding, sustainable and cost-
effective.
To be a leader in the promotion of Green, with a “knowledge-based and continuous learning”
culture and a spirit of innovation, EnGro work constantly with our partners to drive industry
adoption of new environmentally-friendly products, thus discovering new possibilities.

Being market driven and technology focused, EnGro will invest in in-house research and
development capability and form technology partnerships to venture into new frontiers of green
applications that provides long term value for our shareholders and ultimately benefits customers
and communities for future sustainability.

Integrated into the way we do business with our partners and customers; is our belief in
Harmony, Trust, Excellence, and Win-Win.

Culture of Engro Corporation:

The people of Engro are a special part of Engro Corporation. Engro culture is strenuous and
projectile and with the emphasis of their core values and honestly to the employees.
The culture of Engro food contains leadership, diversity and excellence.

Objective and goals of Engro Corporation:

The goals and objectives of Engro Foods are simple and well designed with the core
strategies to meet the demand of the consumers and to fulfill the needs of the customers.
Following are the main goals:
-To possess leadership among other companies.
-To introduce innovative products.
-To capture diversified marked and international focus.
-To maintain quality and work for continuous improvement.
-Candid and open communications.
-External & Community Involvement.
-To focus on individual growth and development.
-Enthusiastic pursuit of profit.
-To keep satisfied ethics and integrity.
-To promote safety, health and pure environment.
-To create opportunities of enjoyment and fun.
-To promote teamwork and partnership.

Major trends in general environment, Impact on the firm and information to

monitor these trends:

-Relation with farmers:

Strong bond
-Customer Response:
Positive response, crossing over 1.4 billion sales.
-Quality:
World class quality
-Technology:
Third generation plant.
Bactofuge technology.

Engro food is a quality conscious company and customer focus company. Customers is its first
priority. Engro launched only that product that appeal customers and satisfy customers’ needs and
wants. Price is calculated according to customers’ affordability and easily available in all over the
country. By using different types of promotion method e.g Advertising, Direct marketing, Sales
promotion, Public Relation, Engro creates awareness in the public.
External marketing environment consist of Political, Economic, Social, Technology. These are
very important for trends in general firm.
ORGANIZATIONAL STRUCTURE:

Now companies are improving their production by adopting different strategies in which
backward integration is one of them. Backward Integration is a type of vertical integration in
which a company gets control over its suppliers to improve the efficiency and save the cost
which improves its profit margins and make the firm more competitive. Backward integration
occurs through acquiring input suppliers, establishing long-term contracts with existing suppliers
or investing in new input production capacity through internal corporate growth.

The main advantages of backward integration regardless of the industry are decreased marketing
expenses, the stability of operations, the certainty of supplies of materials, much control on the
distribution of products, tighter quality control, the on time review of fabrication and allocation
policies, more control over inventory, and additional profit margins or the ability to charge lower
prices on final products. These advantages must be weighed against the disadvantages which
normally are disparities among productive capacities at a range of stages of manufacturing,
governmental pressure, lack in interest of specialty, the firmness of operations, the extension of
the management team and lack of direct competitive influence on the costs of transitional
products.
Engro Corporation HRM practices:
 Recruitment
 Selection
 Training and development
 Compensation and Benefit
 Reward System
 Career Development
 Performance Appraisal
 Recruitment:
 Identification of needs
 Advertisement
 Job Description
 Job specification
 Application Form/ Submission of resume
 Evaluation of resume
 Short listing
 Test
 Interview
 Recommendation HR department
 Medical
 Hiring

Selection:
 Attitude
 Ability to express ideas
 Team player
 Organization Fit
 Passion/ enthusiasm for work
 Believe in continuous working
 Acceptability of new ideas and technology

Training and development:

 Multimedia Training
 Near transfer training
 On the job Training
  Team Leader training

Compensation, Benefit AND Reward System:

o Smart/Quality work
o Exceptional performance in a project
o Target achievements
o Special Assignments
o Medical Care
o Life insurance
o Vacations
o Relocation
o Recreation
o Club Policy travel

Career development:

Engro Corporation is an energizing company that provides exciting career opportunities to its
experienced professionals. Engro provides a great culture to its employees in which they achieve
the organizational goals and as well as professional goals.

Engro is committed to the essential concept that career development is a shared responsibilities,
with employee’s part in it being active and positive one.

Performance Appraisal:
 To measure the work performance
 To motivate and assist employees in improving their performance
  Achieving their professional goals
 To identify employees training and development needs.
 To provide a solid path for career planning for each individual

Part: B:

Mobilink and Warid

Merger and Acquisition:

Objective:

Mobilink ( HAR DIL HAR DIN) and Warid announced they have agreed to merge both
companies to become one company within few months. CEO’s of both companies held a press
conference in Lahore, where they explained to the media about ins and outs of entire deal.

Introduction and background:

Pakistan mobile communications LTD, better known as Mobilink GSM. Mobilink has 28.24
million customers by March 2009. Mobilink’s Head office is located in Mobilink House, 1 A
Kohistan Road, F-8 Markaz Islamabad. Mobilink started operations 1994 as the first GSM
cellular Mobile service in Pakistan. Total strength of employees, over all 4500, top managers 75,
Middle Managers, 750 and line managers 3675. Mobilink offers both Pre-paid and post-paid
services, INDIGO ( Postpaid) and JAZZ (Pre-paid).
Mobilink added value services:
1: GPRS
2: Mobilink
3: SMS Messaging
4: Power Tools
5: Chat services
6: Dedication services
7: Power tools
8: Mail services
9: Info Services
10: IVR ringtones/Logos
11: On call services
12: Missed Call Alerts

In 2004, Warid Telecom International purchased a license for operating a nationwide mobile
telephony and long distance international for $291 Million US. The license was acquired by a
team led by Bashir Tahir the former CEO of the Abu Dhabi group. Warid Pakistan launched its
services in May 2005. Within 80 days of launch warid Pakistani claims to have attracted more
than 1 million users.

On June , 30 2007 Singapore telecommunication ltd (SingTel) and warid telecom entered into an
agreement subsequent to which SingTel will acquire a 30% equity stake in January 2013 for
$150 million and a right to receive 7.5% of the net proceeds from any future sale, public
offering, or merger of Warid.

Terms of agreement:
The parent companies of Mobilink and Warid Telecom announced on Thursday that they had
reached a merger agreement at a price tag of $500 million, Mobilink will acquire 100 per cent
shares of Warid under the agreement while the shareholders of Warid Telecom will get 15 per
cent shares of Mobilink.
An announcement by VimpelCom, said that VimpelCom and Global Telecom Holding S.A.E.
(GTH), together with Warid Telecom Pakistan LLC and Bank Alfalah Limited (Dhabi Group
shareholders), reached an agreement on Thursday to merge their Pakistan telecom businesses.

The transaction is expected to create Capex and Opex synergies with a net present value of
approximately $ 500 million. The combined revenue of both companies for the 12 months to
September 2015 was $1.4 billion.

VimpelCom and the Dhabi Group shareholders have agreed a clear corporate governance
structure. The board will consist of seven directors, of whom six will be nominated by
VimpelCom and GTH and one nominated by the Dhabi Group shareholders. Upon successful
completion of the transaction, Mobilink’s CEO Jeffrey Hedberg will become the CEO of the
combined business and Mobilink’s CFO Andrew Kemp will become the CFO of the combined
operation.

The transaction is expected to close within six months from date of agreement, subject to
obtaining approvals from the relevant authorities in Pakistan and the satisfaction of customary
closing conditions. The merger is expected to close within 6 months from closing of the
transaction, subject to the satisfaction of customary closing conditions.

After a four year lock-in period following the date of closing of the Acquisition Transaction, the
Dhabi Group shareholders will have the option to put their shares of the merged company to
VimpelCom/GTH, and VimpelCom/GTH will have the option to call the shares of the merged
company held by the Dhabi Group shareholders, each at fair market value.

The merger of Mobilink and Warid Telecom will see the combined entity serving 45 million
customers. The transaction is the first merger in the mobile telecommunications sector in
Pakistan.

Commenting on the agreement, VimpelCom Chief Executive Officer Jean-Yves Charlier said,
“We are delighted to announce the agreement with the Dhabi Group shareholders today to
combine our businesses in Pakistan. With the addition of Warid to our already strong customer
base at Mobilink, we will serve more than 45 million customers and offer a best-in-class mobile
and high-speed data network – a key factor in the digital enablement of Pakistan’s economy.”
Dhabi Group Chairman His Highness Sheikh Nahyan Mubarak Al Nahyan said, “Creating the
largest operator in Pakistan is a significant milestone not only for Mobilink and Warid but also
for Pakistan as a whole. Warid’s partnership with Mobilink will create value for all stakeholders
and pave the way for exceptional and cost-efficient telecommunication services for customers.
Both parties bring their unique strengths to this merger. Warid, with its strong post-paid base and
high quality 4G/LTE network will complement Mobilink’s position in the market. We are very
pleased to continue to contribute to the strengthening of the competitive landscape for the
broader telecom sector and the overall economy of Pakistan. The transaction reaffirms my own
and my fellow investors’ long-standing and continuing commitment to Pakistan.”

Reasons for the merger and acquisition:

If both companies were agreed to merge then its mean both have try to assured its own benefits.
It’s a win win situation for both. The reasons are listed in the following:
1: Warid was facing narrow spectrum problem due to voice and text services now mobilink will
shift all warid users voice text data on their own spectrum and use their 3G and warid LTE
spectrum only for data services.
2: But due to huge datebase mobilink have to deploy more cell sites in big cities like Karachi,
Lahore, Faisalabad, Rawalpindi/Islamabad and multan. Where lzrge number of users connect on
a single cell site ( or use 3G and LTE) to fulfill the speed demand.
3: On November 26, 2015 VimpleCom and Dhabi group agreed to merge mobilink and warid
into a single company.
4: The first merger in the mobile communication section in Pakistan.
5: Mobilink will acquire 100% shares of Warid.
6: There will be no company as a mobilink.
7: After a lock-in period of 4 years, Dhabi Group will allowed to sell its 15% stakes at fair
market values.
8: VimpelCom will have 1st rights to these 15% shares, however they may offer Dhabi Group to
sell these shares to anyone else.
9: Board composed of 7 directors of which 6 will be nominated by VimpelCom while Dhabi
group can appoint 1 director.
10: Resolutions of the board, in general shall be decided by majority vote.
11: Jeffrey Hedberg will be the CEO of merged company.
12: Andrew kemp will be the CFO of merged company.
13: Both companies think that through merger we easily create a value.
14: They also optimized organizational structure through this merger.
15: It’s also a tool through which both companies improve its future strategy.
16: Due to increase in output both firms can reduce its average costs (Economies of scale)
17: Also gets a unique strengths in market.
18: Also provide user friendly online banking services on mobile.

Merger benefits:
 Synergies of capex and opex

 Total number of towers: 13,00

 Current mobilink towers: 5,000

 3G towers: 3,600
 4G LTE Towers: 1,000

Revenue Comparison:
 Current Warid and current mobilink customers will start using one single network, one
helpline and same services.

 Current mobilink revenues for months till sep 2015: USD 1 billion

 Current warid revenues for 12 months till sep 2015: USD 357 Million

 Proforma revenues for 12 months till sep 2015: 1.36 billion

 Net debit position as September 2015:

mobilink: USD 380 million
Warid: USD 470 Million

 Proforma USD 850 Million

 USD 115 million annual run rate cost synergies, 90% expected by third year post closing;
in excess of USD 500 million NPV cost synergies expected, net of integration costs.

IHRM IMPLICATIONS OF THE ACQUISITION:

 Identifying and communicating the reasons for the acquisition to employees. Often
employees see change as dislocating and upsetting
 Assessing the corporate cultures of both the companies
 Deciding who stays and who gos.HR must determine the new organizational structure and
retain and motivate key talent.
 Comparing benefits, compensations and union contracts and deciding on HR policies and
practices.
 Inspiring and motivating its people.

 Developing its people to strive for higher standards.

  Driving an open minded and enterprising corporate culture where people through leadership at all levels
dare to dream, dare to try, dare to fail and dare to succeed.

 Attracting and recruiting the best talent

Mobilink has a very defined and well-structured department and its various
policies of keeping each employee productive part of the organization areintoned with the corporate
world’s requirement.

Employees in the company are largely committed to their organization and have shown progress
in the company. Employees are satisfied with the HR department of Mobilink GSM Company.

It was informed during a media briefing attended by Augie K. Fabela, co-founder and chairman
emeritus of Jazz’s parent company VimpelCom, Jazz CEO Aamir Ibrahim, Chief of Corporate
Affairs Ali Naseer and Director Communications and Sustainability Anjum Nida Rahman.

“Mobilink was a huge company and it had 335 outlets across the country, but Warid had 330
outlets despite the fact that it was almost one-third of Mobilink,” Mr Ibrahim said. “So we have
closed 260 outlets, of which 80 per cent are of Warid.”

It was informed that Warid was doing good business, but it needed more funds to compete with
other companies.

However, after the merger all the issues regarding capacity-building were automatically addressed.

Replying to a question that competitors of cell phone companies have now increased, and apps
like WhatsApp are also providing call, SMS and other services, he said that Jazz was looking into
it and will devise a strategy about it.

“Moreover, we don’t want to limit consumers to just entertainment or simple use of internet. We
want to provide them knowledge and education,” he said.

The company says it has more than 49 million subscribers and covers 80pc area of the country.
HRM Practices of Mobilink after Merger and acquisition:
 1. Planning
2. Recruitment
3. Selection
4. Training and Development
5. Compensation
6. Performance Appraisal system

Planning:
After the emergence of new telecom companies, market has become much more competitive and
employees are less loyal to the company. Whenever they get any opportunity better than the
existing job, they just opt for that. Which is there right, however Mobilink is aware of this fact
and that’s why they do not have any formal strategy for succession planning. They do consider
the people from inside but proper succession planning is not practiced in Mobilink these days.
When they entered into the market they used to have strategy regarding this matter. But now due
to market trends they have transformed there new strategies. According to the management it’s
not useful to invest a lot in the employee at a larger extent. They do develop employees for
their career planning but no formal succession planning is practiced.

Recruitment and selection:

In Mobilink, the activity to fill a vacancy or new job starts with the requirement communicated
by respective managers and HR department. The HR department then looks for the possibilities
of internal and external recruitment.

Internal recruitment:
In MOBILINK, internal recruitment is done for the managers of the higher grade and directors.
When a position is vacant, the HR department views the past performance of the people
working at lower levels than the vacant position and chooses the right person who is promoted to
that position.
At the manager and director level, the internal recruitment process is mostly carried out but when
managerial position is vacant and a suitable person is not available for the desired post from
within the organization then external recruitment is carried out.

External recruitment:

For external recruitment in MOBILINK, the line managers are required to make a requisition
form for the job in which they have to mention their need taking in
account the budget for establishment and salaries for the position of Management, Business Sup
port Officers and Workers. Role profile for thespecified job is also prepared matching up the
requirement and the grade of the job. Training period is also specified on the requisition form.
The requisition form along with the role profile is sent by the line manager to the functional
director for his approval and then forwarded to HR Manager. The HR manager confirms the
availability of budgets required for establishment, salaries and cost of advertisement for the job.
After all this, the requisition form along with the job profile and the budget forecast is sent to the
HR Director for his final approval. After approval from the HR director the HR manager and the
line manager workhand in hand to prepare job and person specifications for advertising or giving
to the head hunters.

Selection:
After a substantial amount of applications have been received, the line and the HR managers
again work together to shortlist the applications. This is done by carefully going through all the
application and by giving different weightage to the following criteria:

•Quality of early schooling

•Grade obtained
•Extra-Curricular activities
•Overseas travel and education
•Age
•Target University
•Relevant experience
after the preliminary interview is cleared people applying for different jobs
aretested in different ways. The following management competencies areassessed by a panel
of cross functional assessors In the case of management selection:

•Communication skills
•Resource management
•Rational decision making
•Influencing
•Creative thinking
•Business development The HR department is responsible for overall administration of the
assessment center including training of the assessors.The HR department provides details of
remuneration package and terms and conditions of service. The HR department also
prepares appointment letter, service agreement and finalizes other documentation for service
record.

Training and Development:

Training is a planned effort by a company to facilitate employees learning of job-
related competencies. These competencies include knowledge, skills or behaviors that
are critical for the successful job
performance. At MOBILINK, there is a continuous assessment of the technical andmanagerial
skills. For the further enhancement of these skills formal training
programmes offered at all levels. The employees are provided withopportunities to put these
skills into practice, in preparation for the move to a managerial
role.Training is viewed at MOBILINK as a way of creating intellectual capital. Employees are
expected to acquire new skills and knowledge, apply them on job and share this information
with other employees. The training is cross-functional for sharing of skills.
Training method:
On the Job training
Special Training Sessions
Team building
Problem Based
Refresher Courses

Types of training in Mobilink:

On general basis the training done in mobilink can be divided into two categories:
1: Soft skill training
2: Technical Training

1: Soft skill training:

Helping your employees develop a stronger base of knowledge on topics that affect their
personal lives can make them more productive and less distracted in their jobs. Soft skill
development courses in areas like personal finance and childcare can help your team better
manage the most important areas in their personal lives. This may include the following things
for e. g

•Conflict management training

•People management training
•Communication skills
•Anger management

2: Technical Training:
This type of training has direct effect on the job of the employee. Specific skills are focused and
developed accordingly. The engineering trainings of Mobilink are also included with this along
with
•Customer Services training
•Sales related training
•Marketing and technology training etc.
All these types of training are done to enhance the employee’s job skills at the level he is at.

Performance Appraisal:
Reviewing performance and taking positive steps to develop employees further is a key function
of management and is a major component in ensuring the success of the company through
effective employee performance.
A review is about ensuring people know what levels of performance areexpected of them and the
n taking action to ensure they are trained and developed to perform effectively.
At MOBILINK a review is intended to be an open and frank discussion
betweenan employee and their Team Leader/Manager. Generally there are two elements: first is
the element in which discussion takes place over the strengths and areas which need to be
developed as displayed by the job holder over
thepast 12 months. The performance is of course judged comparing the
performance against the core indicators of Job. The second element is
concerned with discussing the training needs/inputs activities that areconsidered to be appropriat
e to help the jobholder overcome some of development areas discussed in the review and also
those activities that are deemed appropriate to build upon their current strengths.

Appraisal Categories:
Appraisal Category Definition of category % of total employees which
can be rated in this category

1: Expert Indicate exceptional 15%

performance
2: Very Good Indicate performance that 10%
consistently meets the
requirements of the position
‘very good’
Compensation and reward system:
MOBILINK considers its employees not just as a cost but also as a resource in which the
company has invested from which it expects valuable returns. Pay policies and programs are one
of the most important human resource tools for encouraging desired employee behaviors. The
advantage of paying above the market average is the ability to attract and retain the top
talent available, which can translate into highly effective and productive work force.
The incentive schemes and incentive objective have been clearly
communicated to all individuals and weekly progress report is also communicated to all
concerned.
Mobilink has a separate department for compensation. That department deals in staffing and
compensation planning. First of all this department has all the information regarding who is
being employed and how it is performing. What so ever promises are made to the employees,
they know that. So it’s easy for them to design compensation plans because they know every
employee which is being
hired.Compensation and benefit plans are particularly based onperformance. If performance is up
to the standards of Mobilink and theemployee has good conducts he is rewarded. After
performance evaluation, results are rechecked and matched with the standards. Based on that,
proper compensation plans are designed.

Reward Categories at Mobilink

Intrinsic and Extrinsic rewards include:
-Smart/Quality work
-Exceptional performance in a project
-Targets achievements
-Special assignments
-Medical care
-Life insurance
-Vacations
-Relocation
-Credit advance policy provident policy/advance against provident fund and a capping of gratuity
-Recreation
-Club Policy Travel
-Education assistance policy

Motivational factors:
Mobilink is a leading telecom company and all the employees working there feel pride in
affiliating them with the organization. It’s the biggest intangible motivational factor. Affiliating
with organization, employees are self-motivated to work and loyalty comes from within.
However they have other factors too. They believe in praising the good work done by employees
and reward them on that. Reward may be tangible or intangible. They also arrange parties in
which star performers are highlighted. Also they have informal meetings after performance
evaluation and supervisors, subordinates, colleagues talk about their
successand are motivated through intrinsic factors. Delegation of authority and empowerment re
the tools which they use to motivate employees and that is how they keep up the good work.