INTRODUCTION

With a vision to acquire self - sufficiency in fertilizer production in the country, FFC was
incorporated in 1978 as a private limited company. This was a joint venture between
Fauji Foundation (a leading charitable trust in Pakistan) and Haldor Topsoe A/S
of Denmark. The initial authorized capital of the company was 813.9 Million Rupees.
The present share capital of the company stands at Rs. 3.0 Billion. Additionally, FFC has
Rs. 1.0Billion stakes in the subsidiary Fauji Fertilizer Bin Qasim Limited (formerly
FFC-Jordan Fertilizer Company Limited).FFC commenced commercial production of
urea in 1982 with annual capacity of 570,000metric tons. Through De-Bottle Necking
(DBN) program, the production capacity of the existing plant increased to 695,000 metric
tons per year Production capacity was enhanced by establishing a second plant in 1993
with annual capacity of 635,000 metric tons of urea.

FFC participated as major shareholders in a new DAP/Urea manufacturing complex

with participation of major international/national institutions. The new company FaujiFer
tilizer Bin Qasim Limited (formerly FFC-Jordan Fertilizer Company Limited)
commenced commercial production with effect from January 01, 2000. The facility is
designed to produce 551,000 metric tons of urea and 445,500 metric tons of DAP.

This excellent performance was due to hard work and dedication of all employees and
the progressive approach and support from the top management. In the year 2002, FFC
acquired ex Pak Saudi Fertilizers Limited (PSFL) Urea Plant situated at Mirpur Mathelo,
District Ghotki from National Fertilizer Corporation (NFC) through privatization process
of the Government of
Pakistan.This acquisition at Rs. 8,151 million represents one of the largest industrial secto
r transactions in Pakistan.
 oyees.

COMPETITIVE STRATEGY

Maintaining our competitive position in the core business, we employ our brand name,
unique organizational culture, professional excellence and financial strength diversifying
in local and multinational environments through acquisitions and new projects thus
achieving synergy towards value creation for our stakeholders.

FUNCTIONS OF MANAGEMENT

PLANNING

In FFC planning through by a proper channel and it take a long time. When they plan
something, they started their planning from the beginning of year and almost taking one
year on research and other precaution and facts relating to their planning they implied
what they planned. In their planning there is a proper channel/ sequence which we
mentioned above.

First of all they analysis the situation and see with the alternative goals and plan and
measure the opportunity cost. After that they select the best way and last step of
their planning is implication with monitoring and controlling. While doing planning and
implication of planning they also see and measure internal and external threats, weakness,
strengths, resources etc. The most interesting thing in FFC’s planning that there is
vertical planning but from Bottom to top because their bottom staff directly relating to
their customers (farmers) so they started planning at gross root level.

CONTROLLING

Controlling is a very much important aspect of big business. FFC controlling technique is
Bureaucratic. Because of in rules and regulation they use Bureaucratic controlling mean
 the formal control, feed forward control aims to prevent problem before they arise,
feedback control implies the performance measure by the data and analysis the results.
With this they have the also have audit management and budgetary control by the help of
auditors, balance sheet, income statement and financial ratios.

Sometimes employees show reaction against these control then management take the
actions against him/her.

INNOVATION IMPACT

In fertilizer sector innovation is not so much important aspect. Because as old as

fertilizer product as increase in value and demand of product.

Because Industry Market innovation are slowly as compare to Consumer

Marketing FFC for the purpose of innovating ideas Research and Development (R&D)De
partment is working. They used the latest equipment and welcome to positiveinnovation
by all over the world.

QUALITY DEPARTMENT

There is a production department who is responsible for the productions of the fertilizers.
There is a proper management team whose look after the products timely.

METHOD OF FORECASTING IN FFC

The method of forecasting use in FFC

 Native Approach
 Delphi Method
 Expert Opinion

NATIVE APPROACH

“Assume demand in next period is the same as demand at most recent period”.
 In native approach company evaluate its past sale and production performance and then
forecast the future demand and supply and take necessary decisions.

DELPHI METHOD

In Delphi method the panel consist of three experts; Staff, Decision Maker, and
Respondents.

Decision makers take necessary decision about product and respondents tell about the
market conditions.

EXPERT OPINION

In expert opinion a panel of experts sit and take decisions and forecast future plans.

FEEDBACK

Feedback is taken from farmer on quarterly basis.

PRODUCT STRATEGY

In FFC they use Differentiation strategy

Differentiation Strategy

FFC used differentiation strategy to distinguish the offerings of the organization in any
way that the customer perceives as adding value.

Differentiation is concerned with providing uniqueness.

What strategy support as a competitive advantage?

FFC using product development strategy in which they are always focusing on introduced
a new product of fertilizer in a market.

Sometime they also using market penetration strategy through which they can obtain as
much profit they want. Because they are pinner of that product.