A business system is a set of interrelated components that

work together to achieve a common goal. It is a collection of

processes, procedures, and policies that are designed to
support the core business functions of an organization.

A business system refers to the combination of people,

processes, and technologies within an organization that work
together to achieve specific business goals. It involves the
management of resources, workflows, and data to improve
efficiency, effectiveness, and profitability. A well-designed
business system can help organizations to streamline
operations, reduce costs, and increase customer satisfaction
Engro Fertilizers Limited operates a complex business system
that involves various interrelated processes and functions to
ensure that the company's products are manufactured and
delivered efficiently and effectively.
The company's business system involves several key
components, including:

Raw material procurement: Engro Fertilizers procures raw

materials such as urea, phosphoric acid, ammonia, and
sulfuric acid from local and international suppliers. The
company has established long-term relationships with
suppliers to ensure a reliable and consistent supply of raw
materials.

Manufacturing process: Engro Fertilizers operates three state-

of-the-art manufacturing facilities in Pakistan, which use
advanced technologies to produce a range of nitrogen,
phosphate, and blended fertilizers. The manufacturing
process includes several steps, such as mixing, granulation,
drying, and packaging.

Quality control: Engro Fertilizers has a strict quality control

process in place to ensure that its products meet the highest
standards. The company tests raw materials and finished
products at every stage of the manufacturing process to
ensure that they meet the required specifications.

Distribution network: Engro Fertilizers has a robust distribution

network that covers all major cities and rural areas of
Pakistan. The company distributes its products through a
network of dealers, distributors, and retailers who are
responsible for ensuring that the products reach the end-
users.

Sales and marketing: Engro Fertilizers has a dedicated sales

and marketing team that is responsible for promoting its
products and services to potential customers. The company
uses various marketing channels, including advertising,
promotions, and sponsorships, to reach its target audience.

Customer service: Engro Fertilizers places a high emphasis

on customer service and has a dedicated team to handle
customer inquiries and complaints. The company offers after-
sales support to its customers and provides them with
technical assistance and training to ensure that they get the
maximum benefits from its products.

Corporate social responsibility: Engro Fertilizers is committed

to conducting its business in a socially responsible manner.
The company has implemented several initiatives to promote
sustainable agriculture practices and support the local
communities.

Overall, Engro Fertilizers' business system is designed to

ensure that the company can deliver high-quality products to
its customers while maintaining efficient operations and
promoting sustainability.

Annual Business Plan:

An annual business plan is a road map for a company and its

employees. It contains milestones that carry the plan forward
through a series of smaller goals that lead to a broader vision of
where the business aims to be by the end of the year.

Annual Business Plan for Engro Fertilizers:

Vision Statement: To provide sustainable and innovative
fertilizer solutions to meet the global demand for food and
enhance the livelihoods of farmers.

Core Values:

• To ensure the safety and well-being of our employees,

customers, and communities.
• To operate with transparency, accountability, and ethical
standards.
• To innovate and lead the industry with sustainable and
eco-friendly practices.
• To support and uplift local communities through social
development initiatives.
• To prioritize the interests of our stakeholders and
shareholders.

Marketing Strategy: Engro Fertilizers will implement a

targeted marketing strategy by creating specific products
and services to cater to different segments of the farming
community. Engro aim to expand our product line to
reach a wider audience while focusing on sustainable and
eco-friendly practices. Engro will also invest in digital
marketing to enhance our online presence and increase
our reach.

Employee Safety: The safety and well-being of our

employees remain our top priority in 2022. Engro
Fertilizers will continue to follow strict COVID-19
protocols to ensure a safe working environment for our
employees. Engro will also provide training and
development opportunities to enhance their skills and
career growth.

Business Strategy: To achieve sustainable growth, Engro

Fertilizers will focus on investing in research and
development to provide innovative and cost-effective
fertilizer solutions. Engro will also prioritize
sustainability by using eco-friendly practices and
implementing measures to reduce our carbon footprint.
Engro.

Challenges: The agriculture industry is susceptible to

changes in weather patterns and crop yields, which can
impact fertilizer demand. Additionally, fluctuations in
foreign exchange rates and logistics costs can pose
challenges to our business operations. However, Engro
remain committed to overcoming these challenges by
focusing on innovation, sustainability, and growth.
1. Sales and revenue targets: Engro Fertilizers could
set targets for its sales and revenue for the
upcoming year, based on its historical
performance and the current market conditions.
These targets could be broken down by product
line, customer segment, and geographic region.
2. Product development and innovation: Engro
Fertilizers could invest in research and
development to create new and innovative
products that meet the needs of its customers
and differentiate itself from competitors. It could
also explore partnerships with other companies
or universities to accelerate product
development.
3. Marketing and branding: Engro Fertilizers could
invest in marketing and branding efforts to raise
awareness of its products and create a strong
brand image. This could include advertising,
public relations, and social media campaigns.
4. Operational efficiency: Engro Fertilizers could
focus on improving its operational efficiency to
reduce costs and increase profitability. This
could involve streamlining supply chain
 operations, optimizing production processes,
and reducing waste.
5. Sustainability: Engro Fertilizers could prioritize
sustainability in its operations and products, by
reducing its environmental impact, improving
the health and safety of its employees, and
supporting local communities. This could include
initiatives such as reducing greenhouse gas
emissions, conserving water resources, and
promoting sustainable agriculture practices.
6. Talent development: Engro Fertilizers could
invest in the development of its employees, by
providing training and development
opportunities, offering competitive
compensation and benefits, and creating a
positive work culture that fosters innovation and
collaboration.
7. Financial management: Engro Fertilizers could
focus on effective financial management, by
closely monitoring its cash flow, managing its
debt and capital structure, and ensuring
adequate financial resources to support its
growth and investment plans.
A business plan is a document that defines in detail a company's objectives and
how it plans to achieve its goals. A business plan lays out a written roadmap for the
firm from marketing, financial, and operational standpoints. Both startups and
established companies use business plans.
Goals:
Engro Fertilizers' main goals include:
• Increasing market share in Pakistan's fertilizer industry.
• Introducing innovative products to meet farmers' evolving needs.
• Enhancing operational efficiency to reduce costs and increase profitability.
• Expanding the company's presence in international markets.

•
Consumers The agricultural sector in Pakistan accounts for a significant portion of
the country's GDP, and Engro Fertilizers plays a critical role in providing farmers
with the tools they need to boost their crop yields and maximize their profits.
• Pakistan has a population of approximately 225 million people, with over
60% of the population living in rural areas. Agriculture is the primary source of
income for many of these rural communities, and the need for fertilizers to
improve crop yields is paramount.
• Engro Fertilizers caters to a diverse range of consumers, including small-
scale farmers, large-scale farmers, and agricultural enterprises. The company's
flagship product, Engro Urea, is a high-quality fertilizer that is specially
formulated to meet the needs of Pakistani farmers. Engro Fertilizers also offers
other fertilizers such as Nitro Phosphate (NP), Di-Ammonium Phosphate (DAP),
and Single Super Phosphate (SSP) to cater to different crop requirements.
• In addition to providing farmers with high-quality fertilizers, Engro
Fertilizers also offers a range of services to help farmers improve their crop yields.
These services include soil testing, crop advisory services, and farmer training
programs. By providing farmers with access to these services, Engro Fertilizers is
helping to improve the overall quality of agriculture in Pakistan, and supporting the
country's efforts to achieve food security.
• Overall, Engro Fertilizers' target market comprises farmers who are looking
to improve their crop yields and maximize their profits. With a diverse range of
high-quality fertilizers and value-added services, Engro Fertilizers is well-
positioned to meet the needs of Pakistani farmers and contribute to the growth of
the agricultural sector in the country.
Market:
Pakistan has a rapidly growing population, which is expected to reach 341 million
by 2050, according to the United Nations. This growth presents a significant
opportunity for Engro Fertilizers to increase its customer base. Additionally,
Pakistan is an agricultural country, with agriculture contributing 24% to the
country's GDP. Fertilizers are an essential input for agriculture, and demand for
fertilizers in Pakistan is expected to increase in line with the country's population
growth.

Competeive advantage:
Engro Fertilizers has a competitive advantage due to its long-standing presence in
the Pakistani fertilizer market. The company has been operating in the country for
over 50 years and has established a strong brand image and reputation for quality
fertilizers. Engro Fertilizers has also invested heavily in research and development
to produce innovative and high-quality fertilizers that cater to the needs of different
crops and soil types in Pakistan.
In addition, Engro Fertilizers has implemented modern technology and practices to
optimize its supply chain, logistics, and sourcing processes, which has helped the
company to reduce costs and improve efficiency. For instance, the company has
implemented a state-of-the-art Enterprise Resource Planning (ERP) system, which
provides real-time information on inventory levels, sales, and procurement,
enabling the company to make informed decisions and optimize its operations.
Engro Fertilizers also has a wide distribution network, which includes thousands of
dealers, retailers, and small farmers across Pakistan. The company works closely
with these stakeholders to ensure that its products are easily accessible and
available in the right quantities and at the right time. Moreover, the company has a
strong focus on sustainability and has implemented various initiatives to promote
sustainable agriculture practices and reduce environmental impact, which has
helped it to differentiate itself from its competitors and gain a competitive
advantage.

Supply Chain:
The SCM strategy ensures that the logistics of the company are planned out in
advance so that there is adequate supply of raw materials, minimum level of
inventory is maintained and the supply chain operations’ cost is reduced; all of
these measures ensure that an organization is able to generate an appropriate
amount of profit and maintain its strong position in the industry. Every strategy in
the SCM comprises of the plan that the company will implement for achieving its
goal of capturing the target market and enhancing the satisfaction level of
consumers.
When new and innovative systems were installed in the company that comprised of
SAP R/3 ERP software along with Oracle related DBMS (Database Management
System) and Solaris Operating System developed by the Sun hardware platform,
the company was able to take advantage of a well-integrated system. Colgate-
Palmolive was able to integrate with its cross-regional resource use systems (CBS)
demand and resource information about the international demand effectively. Since
the input was rapid, there was an increase in the number of shipments, reduction in
the number of improper or incomplete orders and a significant decline in the
number of inventory.
Marketing Strategy:
Engro Fertilizers' marketing strategy is focused on promoting its products to
farmers through various channels, including agro-dealers, government outlets, and
its own sales force. The company has also established a strong online presence to
reach farmers in remote areas. Engro Fertilizers' marketing messages emphasize
the quality and effectiveness of its products in improving crop yield and quality.
The company also offers training and support services to farmers to ensure they are
using its products effectively.
Financial Strategy:
Engro Fertilizers' financial strategy is focused on increasing profitability through
cost reduction and revenue growth. The company aims to achieve this by
increasing market share in Pakistan's fertilizer industry, introducing innovative
products, and expanding its presence in international markets. Engro Fertilizers
also aims to improve operational efficiency by implementing technology and
process improvements to reduce costs.