Ocp final case

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Strategic Management

THE FINAL CASE COMPETITION

We Are ,,,

o LAKBIRI Yosrao JABER TEMSAMANI Salma

o MOUSSAOUI Nisrineo KAAYA Mohamed Achraf

o NAJIB Soumayao BENOUNI Ilyasseo SAOUI Ghita

And here’s the Outline

I. What is OCP ?

II. OCP Yesterday # OCP Today

III. OCP and their prices

IV. OCP and their customers

V. The growth strategy and the challenges

VI. Recommendations

What is OCP ?

OCP is ,,,

the world’s leading producer of phosphate

rock and phosphoric acid and one of the

leading global fertilizer players

more than 90 years of history serving

agriculture

the Group has 23,000 employeesRevenue of 4.575 billion $

Founded in 1920 Casablanca, Morocco

The legend

Mostafa Terrab – President and Ceo

the world’s leading producer of phosphate

rock and phosphoric acid and one of the

leading global fertilizer players

more than 90 years of history serving

agriculture

the Group has 23,000 employeesRevenue of 4.575 billion $

Founded in 1920 Casablanca, Morocco

Financial Highlights

OCP Group achieved remarkable financial performance and some

of the highest margins of the industrial sector by the end of 2015.

The growth in rock and acid sales counterbalanced the slight drop

in fertilizer sales. Consequently, sales for 2015 reached MAD

47,747 million versus MAD 41,436 million in 2014

Financial Highlights

In an unfavorable international context marked by the increase in

Chinese phosphate exports and the decrease in demand from South

American countries, particularly Brazil, OCP Group achieved

remarkable financial performance and some of the highest margins

of the industrial sector by the end of 2015.

The growth in rock and acid sales counterbalanced the slight drop

in fertilizer sales. Consequently, sales for 2015 reached MAD

47,747 million versus MAD 41,436 million in 2014

Financial Highlights

The outlook for 2016 is positive. The Group

expects gradual improvement in 2016. .

The outlook for 2016 is positive. The Group expects

gradual improvement in 2016

OCP Yesterday # OCP Today

The change

OCP Yesterday # OCP Today

The change ,,,

Positioning

OCP Yesterday # OCP Today

The change ,,,

ASIA

• Opening two representative offices in Asia: Singapour And Abu dhabi

• Sharing knowledge and expertise between morocco and india

OCP Yesterday # OCP Today

The change ,,,

AFRICA

• Openning of 14 subsidiaries in Africa

• Establish a factory in jorf lasfar of fertilizers dedicated to africa

nammed Africa Fertilizer Complex : 5,3 Billion dirhams of investment

and 350 employee

OCP Yesterday # OCP Today

The change ,,,

Commodity global chain value

OCP Yesterday # OCP Today

The change ,,,

• OCP has competitive advantages across all three product segments.

• 30% of all global imports of phosphate and phosphate-derived

products, specifically:

48%Phosphoric Acid

33%

Phosphate

rock

21%fertilizer

OCP Yesterday # OCP Today

The change ,,,

Innovation

OCP Yesterday # OCP Today

The change ,,,

WHY

OCP and their prices

Law of supply and demand

The demand

World’s population

Agricaltural production

Demand for

How was OCP able to impact the price through its

strategy?

How was OCP able to impact the price through its

strategy?

Law of supply and demand

The supply

Law of supply and demand

High demand

Highersupply

Slump in prices

How was OCP able to impact the price through its

strategy?

OCP and their customers

OCP serves about 150 customers on 5 continents.

OCP and their customers

Proactive business strategy

Understand custommer’s needs

Understanding the Soil to

define the needs

Optimization of the supply

chainSupport and Guidance of

fertilizer use

Recommendation of the

adapted fertilizer solution

OCP and their customers

R & D and Innovation

Worldwide position

Cost effectiveness

Growth Strategy

Challenges

Challenges

New Markets and Important MarketShare The raw phosphate market has less added value hence the

profits are not important

The need to expand to new markets ( fertilizers ): Africa

Challenges

Stimulate the Demand

Assist the development of agriculture in Africa

Recommendations

Recommendations

Reinforce the group’s financial structure in order to develop needed

investesments.

Encourage research and innovation for fertilizers since the

custommers of phosphate are the first competitors of ferlitizers.

Invest on the humain capital by providing training to be more

productive and efficient.

Use local subcontractors instead of international companies.

Promoting internship offers to improve transparency.

Respect environment (The waste of phosphates is directly thrown

into the seas )

Strategic Management

THE FINAL CASE COMPETITION

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