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Group Members
Waseem Azam
Fahad Tariq
Abu Bakar
Danish Aftab
Almas Umer
Waqas Aziz
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Muhammad Abu Bakar
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ENGRO
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INTRODUCTION
Incorporated in 1965.
Fertilizer in Pakistan.
With the name of EXXON Chemicals.
1991 Name changed as Engro.
Joint venture engaged in chemical related
activities.
New milk plant is established in Sukkar
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Diversified Portfolio
Fertilizer Business
Engro Energy Limited
Engro InnovativeAutomation Limited
Engro Vopak TerminalLimited
Engro Asahi Polymer&Chemicals. Limited
Engro Food Limited
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Our Affiliates
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MISSIONSTATEMENT
Our mission is two fold, to help farmersmaximize their farm produce by providing
quality plant nutrients and technicalservices upon which they can depend. Tocreate wealth by building new businessesbased on company and country strengths in
petrochemicals, information technology,infrastructure, food and other agriculturesectors.
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Vision Statement
To be the premier Pakistani enterprise with
a global reach, passionately pursuing value
creation for all stakeholders.
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WASEEM AZAM
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ENGRO FOODS
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Food industry in Pakistan
The food and its allied products
industry is considered Pakistans
largest industry
27 percent of its value-added
production
Total value of production is over Rs.46
billion
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Engro Food
More than 40 years in fertilizer and
chemical.
Engro Foods started its business operationsinMarch 2006
Successful launch of Olpers Milk, Tarang,
Olwell, and Olpers cream,Two processing plants at Sukkur and
Sahiwal.
Our aim is to dominate the food business.
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Our Brands
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Our Values
Integrity
Our PeopleInnovation
CSRConsumer Centric
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Vision according to Engro
Foods
Aims at transforming the company
within the next five years into first
a national food industry giant, then
into a regional force and finally
into a global player.
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Mission according to Engro Foods
Build Branded food business to
improve quality of life by offering
tasty, affordable and highly
nutritional products to our
consumers while maximizing stakeholders' value
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Objectives And Goals
Supply everyone their favorite olpersMilk to satisfy
the consumer needs and wants.
To provide profit to the shareholders and increase the
market share.
EFL dreams to be BIG
We want to be a major player in the food industry
"Elevating Consumer Delight Worldwide".EFL wants to challenge the industry norms and
surprise whoever has eyes on EFL.
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ANALYSISOFMISSION
Component of mission
statement
Description Addressed or not?
Customers Who are the firms customers? Yes
Products or service What are the firms major
products?
Yes
Markets Geographically, where does the
firm compete?
Yes
Technology Is the firm technologically
current?
No
Concern for survival, growth
and profitability
Is the firm committed to growth
and financial soundness?
Yes
Philosophy What are the basic beliefs, values,
aspirations, and ethical priorities
of the firm?
Yes
Self-Concept What is the firms distinctive
competence or major competitive
advantage?
Yes
Concern for public image Is the firm responsive to social,
community, and environmental
concerns?
No
Concern for employees Are employees a valuable asset of
the firm?
No
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DANISH AFTAB
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PORTERS FIVEFORCES MODEL
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COMPETITIVE RIVALRY
The food industry is becoming highly
competitive.
low cost structure, greater efficiency andbetter customer service will beat out
competitors.
Food companies also use higher investmentreturns
competition between Engro foods and
Haleeb is quite intense
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THREAT OF NEW
ENTRANTS
The average entrepreneur can't come along andstart a large food company.
Capital requirements
Production of packed products requires hugeinvestment of financial, human, technical, andmarketing resources.
Economy of scale
potential competitors either to enter on a largescale bases (a costly and perhaps risky move)or to accept a cost disadvantage.
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AVAILABILITY OF SUBSTITUTES
There are plenty of substitutes in the
food industry
Companies focusing on niche areasusually have a competitive advantage
Most large food companies offer
similar suites of services
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BARGAINING POWER OF
SUPPLIERS
Number of suppliers
Raw milk is standard commodity and is
available in the open market from a largenumber of milkmen
Importance of volume to supplier
Suppliers also have less leverage to bargainover price
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BARGAINING POWER OF BUYERS
The individual doesn't pose much of a threatto the food industry
Large clients have a lot more bargainingpower with food companies. (Large corporate clientslike airlines )
Backward integration
Another reason of low bargaining power isthat no buyer/distributor has the resourcesto start involve in backward integration.
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Strengthsstrong brand name i.e. Engro
PR with farmers
Positive response from customers
Strong consumer & product research
Third-Generation Plant
Worldwide fame of Engro.
Efficient milk collection system.
Keeping high quality standards.
Integrated distribution and warehousing facilities.Successful related diversification.
Generic brand name of Olpers
S
W
OTAn
aly
sis
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WeaknessesOlwell TVC
Owning Red Color
Low Quality Milk
Packaging
Milk collection & distribution costs
Narrow brand portfolio
Unable to compete in price sensitive segment of UHTmilk market.
Under-utilization of the capacity.Unable to fulfill the demand of local powder milkmarket.
Not yet ISO certified
S
W
OTAn
aly
sis
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OpportunitiesIncreased funding by Government
Increased consumption of PLM
Awareness
Third largest producer of milk
Population growth rate.
High urbanization rate.
High literacy rate.
Flexible government policies for food industry.
Have significant growth opportunities
Has sufficient capital to expand.
Has the potential to innovate and differentiate the company's products to
sustain a
competitive advantage
May merge with other global businesses to eliminate competitors.
Having Capable of expanding into other markets of the world
S
W
OTAn
aly
sis
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Threats
CompetitionPerceptions and Price Differentials
High inflation rate.
Low purchasing power.
Decrease in GDP growth rate.Increasing interest rates.
Decreasing investment.
Recessionary period in business cycle
Competition with Nestle, Engro Foods and thenew entrants.
Engro foods is currently facing are increase inSales Tax
S
W
OTAn
aly
sis
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FAHAD TARIQ
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StrengthsEndowed with the very good breed of
buffalos and cows
Highest per capita consumption of
milk in AsiaRegular culling of lessproductive/unproductive animals
A high ratio of agricultural land to
agricultural ratioAn emergence of commercial dairyfarms on a large scale
INDUS
TRIAL
SWOT
ANAL
YSIS
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WeaknessesSmall and scattered animal holding
Prevalence of traditional raw milk marketing system
Poor quality of milk; lack of remunerative producerprice for milk
Milk processing predominantly dependant onobsolete UHT technology
Mushrooming growth of cattle colonies in suburbanareas; High cost of milk
Production; a long chain of middle men
Inadequate infrastructure and institutional facilities
and supportLow utilization of installed capacity of dairy plants
Poor quality of animal health care and breedingservices; lack of professional management
INDUS
TRIAL
SWOT
ANAL
YSIS
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Opportunities
Huge unsatisfied demand of milk and
milk products.
Substantial scope for increasing milk
production through improvement in the
marketing
system by ensuring a year round
remunerative price to milk producersIncrease consumer awareness of
healthy eating
INDUS
TRIAL
SWOT
ANAL
YSIS
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ThreatsUnregulated imports of dairyproducts at cheap prices
Inadequate public and privateinvestment in modernization of the
sector
Vested interests in perpetuating the
dependence on imports of dairy
commodities
INDUS
TRIAL
SWOT
ANAL
YSIS
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SWOT matrix
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STRENGTHS WEAKNESSES
Worldwide fame of Engro.
Unable to compete in price
sensitive segment of UHT milk
market.
Efficient milk collection system. Under-utilization of the capacity.
Keeping high quality standards.Unable to fulfill the demand of
local powder milk market.
Integrated distribution and
warehousing facilities.Not yet ISO certified
Generic brand name of Olpers
Large market share of Engro
innovative and chemicals.
Having Good reputation in the
market by strong brand name i.e.
Engro
Strong R&D
OPPORTUNITIES SO Strategies WOStrategies
Improving EconomyIncrease production of quality milk to
cater the unsatisfied demand(S2,O2,O8)
Population growth rate.As per the increase demand of the milk they should fulfill the demand as EFL have the
ability to expand.(W3,O8).
High urbanization rate.They should go in the product line of
powdered milk. (S8,O2,O5)
High literacy rate.They should make a strong distribution system to cater to avail the full benefit of the
growing market.(W3,O2
Flexible government policies
for food industry.They should increase their exports. (S1,O6,O7)
Have significant growth
opportunities
May merge with other global
businesses to eliminate
competitors.
They should cater the wide range of
unsatisfied demand by improving their distribution
networks(S4,O8))
Having Capable of expanding
into other markets of the world
They should adopt affective marketing strategies for the promotion of their
product.(W2,O1)
THREATS ST Strategies WTStrategies
High inflation rate.
Invest more on the dairy product line as there is still a
large chunk of the market which require modernization
(S6,T5)
Low purchasing power.
The co-ordination between different
departments of EFL should be improved it will lessen the bureaucratic cost and
increase the efficiency of the company.
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InternalFactor Evaluation Matrix
Key Strategic Factors Weights Ratings Weighted Scores
StrengthsBrand Image 0.08 4 0.32
Growing Sales 0.03 3 0.24
Market Share 0.05 3 0.15
Distribution Channel 0.08 4 0.32
Product Quality 0.07 3 0.21
Capacity 0.08 4 0.32
Innovation 0.04 3 0.12
Customer Oriented 0.02 3 0.06
Qualified Work force 0.01 3 0.03
R & D 0.05 4 0.2
Business without Interest 0.02 3 0.06
Exporting 0.06 4 0.09
Weaknesses
Local Company 0.05 1 0.05Centralized Decisions 0.09 2 0.18
No Sales on Credit 0.06 2 0.12
High Price 0.05 2 0.1
Uncertain Economic & Political
Conditions
0.03 1 0.03
Market Demand 0.05 2 0.1
StrikerTerms And Conditions 0.03 1 0.03
Promotion 0.05 2 0.1
T tal 1 2.83
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ExternalFactor Evaluation
Key Strategic Factors Weights Ratings Weighted Scores
Opportunities
RawMaterial Availability 0.1 4 0.4
Market Capitalization 0.08 3 0.24
Diversification 0.07 2 0.14
Exports 0.07 3 0.21Haleeb Bottle 0.04 1 0.04
Credit Policy 0.06 2 0.12
JointVentures 0.06 3 0.18
Threats
New Entrants 0.08 3 0.24
Sales Tax 0.05 2 0.1
Changing Season 0.06 3 0.18Suppliers 0.07 3 0.21
Economic Conditions 0.05 2 0.1
Price Sensitive People 0.06 2 0.12
Gawala Milk 0.1 4 0.4
SmallT
argetM
arket 0.05 2 0.1
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Competitive Profile Matrix (CPM)
Critical Success Factors WeightRating Score Rating Score Rating Score
1 Research &
Development
0.08 3 0.24 3 0.24 4 0.32
2 Advertisement 0.09 3 0.24 4 0.36 3 0.27
3 Financial Position 0.09 3 0.27 3 0.27 3 0.27
4 Market Share 0.07 2 0.14 4 0.28 3 0.215 Product Quality 0.08 3 0.24 3 0.24 3 0.24
6 Price Competitiveness 0.11 3 0.33 3 0.24 2 0.22
7 Management 0.10 3 0.30 4 0.40 3 0.30
8 Global Expansion 0.08 3 0.24 4 0.32 3 0.24
9 Customer service 0.06 3 0.18 3 0.18 2 0.12
10 Sales And Distribution
Network
0.09 3 0.27 4 0.36 3 0.27
11 Production Capacity 0.07 2 0.14 3 0.21 4 0.28
12 Alliances 0.08 3 0.24 4 0.32 3 0.24
Total 1.0 2.76 3.51 2.98
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WAQAS AZIZ
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KEY SUCCESS FACTORS
Research & DevelopmentFinancial Position
Market Share
Product QualityPrice Competitiveness
Management
Global Expansion
Customer serviceNetwork Sales And Distribution
Production Capacity
Alliances
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SPACE MATRIX
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SPACE MATRIX
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SPACE MATRIX
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SPACE MATRIX
our company should pursue an aggressive
strategy. Our company has a strong
competitive position it the market with rapid
growth. It needs to use its internal strengths to
develop a market penetration and market
development strategy.
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BCG Matrix Model
Division Revenues
Percent
Revenues Profits
Percent
Profits
Percent
Market
Value
Percent
Growth
Rate
Olpers $4500 49.90% $2000 41.62% 60 +8
Olwell TVC $2550 24.87% $1500 31.21% 25 -6
Tarang $3200 31.21% $1305 27.18% 35 +4
Total = $10250 100% 4805 100% .. ..
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Division wise data forEngro foods BCG
Matrix
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Internal External (IE)Matrix
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Internal External (IE)Matrix
Score from the EFE matrix -2.75- this scoreis plotted on the y-axis
Score from the IFE matrix -2.83- plotted on
the x-axis As blue lines indicate
This IE matrix for Engro foods tells us that ourcompany should hold and maintain its
position. The company should pursuestrategies focused on increasing marketpenetration and product development
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Grand Strategy Matrix forEngro foods
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QSPM Matrix OFEngro foods
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QSPM Matrix OFEngro foods
we came to a conclusion that Expansioninternally a is a better option. This is given
by the Sum Total Attractiveness Scorefigure. The expansion strategy yields higherscore than the acquiring of competingcompany. The acquisition strategy has ascore of 2.75 in the QSPM shown abovewhereas the internal expansion strategy hasa smaller score of 2.78
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ALMAS OMER
FINANCIAL RATIO
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FINANCIAL RATIO
ANALYSIS
Liquidity Ratios
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Leverage Ratios
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Activity Ratios
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Profitability Ratios
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SUGGESTIONS
The co-ordination between different departments of EFL should be improved it willlessen the bureaucratic cost and increase the efficiency of the company.
The activities like customer satisfaction day should be performed on regular basis
so the company should know the feedback and satisfaction level of customers
regarding the product and the image of the company.
The shopkeeper complains that EFL is not providing replacement for the expired
products, EFL should provide proper replacement to the shopkeeper to enhance the
image of the company, and create better working relations with such an important
stakeholders.
EFL has shifted to branding concept but it really has not adopted it fully, for smoother working of the different brands, the sales teams should merged with
respective brand management.
There is no check on the performance of the distributor, and this has led to huge
problems in the delivery of many products in some areas of the city
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SUGGESTIONS
They should also start to manufacture powder milk in order to
meet the domestic demand
Explore the market potential in a way, so that it can utilize its
full capacity in order to gain economies of scale in the
production.
Develop theMKT program that distinguishes the
characteristics of existing available substitutes to their highly
quality & hygiene oriented product.
Develop an integrated awareness plan in order to aware thepeople about the quality of the UHT milk as compared to other
pasteurized or loose/fresh milk.
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THANKS
"Whatever you can do, or dream you can, begin it. Boldness has
genius, magic, and power in it."--Johann Wolfgang Von Goethe