Note in the analysis below that the authors isolated the snacks vs.

beverage key factors and

utilized a 1 vs. 4 rating scale to perform the analysis. Factors not rated were determined not to
significantly impact the decision being made.

QSPM Strategies:
Strategy 1) Natural resources are scarce and can be costly, invest into renewable resources
Strategy 2) With the help of engineering excellence compete in the market with the pricing strategy

Internal and External Factors

Strengths
Strong brand recognition

Lean organizational structure, creating more customer value via efficient operations
Wide product and services portfolio, offering farmers complete range of seed to
harvest solutions
Financial sustainability and strong balance sheet position
Quality and efficiency of Human Resource
Renowned engineering
excellence
Personal Relations with farmers
Skill Development of farmers
Largest single train Urea plant

TOTAL

Weaknesses:
Mature industry with declining / stagnant market growth
Reliance on depleting natural resources
Phosphate and Potash based price elastic products in the portfolio
Bring trained workers from other areas
Expensive to consatntly train farmers
Inconsistent production
Plants not operating on full capacity

SUBTOTAL
Opportunities:

Probability of advancement in major gas projects (e.g. TAPI) will positively influence the
availability of Engro Fertilizers Limited’s primary raw material
Local urea prices are considerably lower than international prices and any surplus can
be easily exported
Low interest rates decrease the cost of borrowing for the company, also decrease costs
for farmers operating on credit.
High government support to the agri sector
Local urea industry increased by 7%
Nitrogen and Phosphorous deficient soil in Pakistan results in increased demand for
fertilizers.

Toatal
Threats:
Inconsistent gas supply and elevating costs of production

Inconsistent government policies and pressures on fertilizer pricing

FX changes adversely impact the dollar-linked prices of primary raw materials and
imports.
Engro Fertilizers posts 86% decline in profits of 1st quarter of 2020, as compared to the
same period last year
FFC looking for different energy options, like coal energy

Total
Sub Total

TOTAL

Interpretation

Engro should focus on increasing its market share by competing on the pricing stategy
as it has a rating of 4.38 and the potential is immense. It can increase its production
capacity and even export on the basuis of prcing to international markets
 Strategy 2) Compete in the market with
he pricing strategy Strategy 1) Invest into renewable resources the pricing strategy
Attractiveness Attractiveness Total Attractiveness
Weights Score Total Attractiveness Score Score Score

0.2 1 0.2 4 0.8

0.05 0 0 0 0

0.1 1 0.1 4 0.4

0.06 4 0.24 1 0.06
0.03 1 0.03 4 0.12

0.02 1 0.02 4 0.08

0.05 0 0 0 0
0.04 0 0 0 0
0.02 1 0.02 4 0.08

0.61 1.54

0.03 1 0.03 4 0.12

0.2 4 0.8 1 0.2
0.01 1 0.01 4 0.04
0.05 0 0 0 0
0.02 0 0 0 0
0.02 1 0.02 4 0.08
0.1 1 0.1 4 0.4
0.96 0.84

1.57 2.38

0.1 4 0.4 1 0.1

0.05 1 0.05 4 0.2

0.15 0 0 0 0
0.05 4 0.2 1 0.05
0.1 1 0.1 4 0.4

0.1 1 0.1 4 0.4

0.85 1.15

0.15 4 0.6 1 0.15

0.1 1 0.1 4 0.4

0.05 1 0.05 4 0.2

0.05 0 0 0 0
0.1 4 0.4 1 0.1

1.15 0.85
2 2

3.57 4.38