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Engro Corporation
Introduction
Engro Corporation Limited (formerly known as .Engro Chemical Pakistan Limited.) is one of the largest industrial corporations in Pakistan. It operates in various sectors
Engro Corporation
o o o o
It is a public sector company listed on KSE. The current share market price of Engro Corporation Limited, as of June 10, 2011 is PKR 187/- per share. It start is operation in 1957 as an Esso/Mobil joint venture. It has following business units
Engro Polymer Engro Energy Engro Fertilizer Engro Foods Engro Foods Supply Chain
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Introduction
Engro Foods Limited was formed as a wholly owned subsidiary of Engro Corporation in 2005. It start its operation in 2006 and become major player in Food industry. It launches multiple products
Products
Mission Statement:
Build branded food business to improve quality of life by offering tasty, affordable and high nutritional products to our consumers while maximizing stakeholders value.
Vision Statement:
Aim at transforming the company within the five years into first national food industry giant, then into regional force and finally into a global player.
Engro Foods main objectives are to supply everyone their favorite Olpers Milk and to satisfy the consumer need and wants. EngoFoods second objective is to increase the value for the stakeholders and company value. We want to be the major player in the food industry.
Market Segmentation:
Demographic
Segmentation
Psychographic Segmentation
Behavioral
Segmentation
Board of Directors:
The board of director committee meets at least once every quarter to review the financial standing of the company, the business polices. The president handle the meeting and review the stakeholders standing and other business policies and discuss the matters with other directors. Engros Board of Directors includes eight nonexecutive directors and five executive directors, who share the collective responsibility of ensuring that the affairs of the organization are managed competently and with integrity. The Board has been reconstituted as of April 2009, supplementing the number of non-executive directors
Engro Foods is horizontally integrated itself and increase its number of products. At this time company has a lot number of products in the market.
Engro Foods wants to achieve more market share than other competitors. In order to achieve the more competitive advantage company uses the differential strategy by differentiate its products from other competitors. Engro Foods differentiate itself in the form of taste, quality and availability of their product in the market.
Marketing
Strategy:
Financial
Strategy:
HRM
Strategy:
SWOT Analysis
SWOT Analysis
Strengths: (internal)
Good relationship with farmers. Positive response from customers. Strong consumer and product research. Third generation plant.
SWOT Analysis
Weaknesses: (internal)
Engro food is not having its own dairy forms. Company gets milk from farmers. Engro foods totally depends on the Tetra Packs for the packing of their entire dairy products. Engro foods have 34 out of 40 milk collection centers are located in punjab, whereas its only milk processing facility is situated near sukkhur(Sindh).
SWOT Analysis
Weaknesses: (internal)
When engro food launshed its first dairy product, Olpers Milk on March 20, 2006. But Engro Foods brand portfolio still consists of just 3 products that is Olpers Milk, Olwell Milk and Olpers Cream
SWOT Analysis
Opportunities: (external)
Increases in funding by government. Increased in consumption of PM (processed milk) Awarreness. Third Largest Milk Producing Country.
SWOT Analysis
Threats: (external)
BCG Matrix
BCG Matrix
BOSTON
CONSULTING GROUP (BCG) MATRIX is developed by BRUCE HENDERSON of the BOSTON CONSULTING GROUP IN THE EARLY 1970s. to this technique, businesses or products are classified as low or high performers depending upon their market growth rate and relative market share.
According
BCG Matrix
Relative Market Share High Low
Question Mark
Olfrute
Cash Cows
Olpers
Dogs
Tarang Powder
Low
BCG Matrix
It is a portfolio planning model which is based on the observation that a companys business units can be classified in to four categories: Stars Question marks Cash cows Dogs
It is based on the combination of market growth and market share relative to the next best competitor.
Stars are leaders in business. They also require heavy investment, to maintain its large market share. It leads to large amount of cash consumption and cash generation. Attempts should be made to hold the market share otherwise the star will become a CASH COW. Omore Tarang
They are foundation of the company and often the stars of yesterday. They generate more cash than required. They extract the profits by investing as little cash as possible They are located in an industry that is mature, not growing or declining. Olpers
Most businesses start of as question marks. They will absorb great amounts of cash if the market share remains unchanged, (low). Why question marks? Question marks have potential to become star and eventually cash cow but can also become a dog. Investments should be high for question marks.
Olfrute
PEST Analysis
PEST Analysis
Political
PEST Analysis
Political Factors:
It includes rules and regulation by the government. Every organization can run its operation sucessfully when it follows the laws rules and regultion related to them.
PEST Analysis
Economic Factor:
Every organization have impact by its economic factorsand they must respond economically.
PEST Analysis
Social Factor:
The improvement in litracy rate brings the awarness about tetra packing.
PEST Analysis
Social Factors:
The improvement inlitracy rate brings awarness about tetra packing, this will enhace tetra packings sales e.g olpers, tarang, olfrut etc. increase in litracy rate will change the mind of the peoples to preffer standardised milk instead of open milk.
PEST Analysis
Technological Factors:
This factor also effects enviroment. Technology brings competitive advantage for any organization.
Avalibility Of Substitute
The threat of substitute is always there in the food industry. Companies usually focus on niche area in which they have competitive advantage.in food industry there is more competition in the food industry so, threat of substitute in food industry is more.
Any Question?