Group Members …….. …….. …….. …….. …….. ……..

Engro Foods Limited

Engro Corporation Introductiono Engro Corporation Limited (formerly known

as .Engro Chemical Pakistan Limited.) is one of the largest industrial corporations in Pakistan.

o It operates in various sectors• Fertilizer• Food• Energy• Chemical• Business Automation Solutions

Engro Corporation o It is a public sector company listed on KSE. o The current share market price of Engro

Corporation Limited, as of June 10, 2011 is PKR 187/- per share.

o It start is operation in 1957 as an Esso/Mobil joint venture.

o It has following business units• Engro Polymer• Engro Energy• Engro Fertilizer• Engro Foods• Engro Foods Supply Chain

Engro Foods Ltd

Introduction o Engro Foods Limited was formed as a wholly

owned subsidiary of Engro Corporation in 2005.o It start its operation in 2006 and become major

player in Food industry.o It launches multiple products• Ice Cream • Flavored Milk • Fruit Juices • Milk Powders

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

stakeholder’s 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.”

Objectives and goals: 

Engro Foods main objectives are to supply everyone their favorite Olper’s 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.

Engro’s Board of Directors includes eight non-executive 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

 

Corporate Level Strategy:

 

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.

 

Business Level Strategy:

 

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.

Functional Level Strategy:

  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 AnalysisWeaknesses: (internal)

Engro food is not having it’s 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 AnalysisWeaknesses: (internal)

When engro food launshed its first dairy product, Olper’s Milk on March 20, 2006. But Engro Foods brand portfolio still consists of just 3 products that is Olper’s Milk, Olwell Milk and Olper’s Cream

SWOT AnalysisOpportunities: (external)

Increases in funding by government. Increased in consumption of PM (processed milk) Awarreness. Third Largest Milk Producing Country.

SWOT AnalysisThreats: (external)

Competition Perceptions and Price Differential.

BCG Matrix

BCG Matrix BOSTON CONSULTING GROUP (BCG) MATRIX is

developed by “BRUCE HENDERSON “of the BOSTON CONSULTING GROUP IN THE EARLY 1970’s.

According to this technique, businesses or products are classified as low or high performers depending upon their market growth rate and relative market share.

BCG Matrix

Stars OmoreTarang

Question MarkOlfrute

Cash CowsOlpers

DogsTarang Powder

Mark

et

Gro

wth

Rate

Low

H

igh

Relative Market Share

High Low

BCG Matrix It is a portfolio planning model which is based

on the observation that a company’s 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 (High growth, High market share) 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

Cash Cows (Low growth , High market share)

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

Dogs (low Market growth, low market share) Dogs are the cash traps.

Dogs do not have potential to bring in much cash.

Number of dogs in the company should be minimized.

Business is situated at a declining stage. Tarang Powder

Question Marks (High Growth, Low Market Share) 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 Factor. Economic Factor. Social Factor. Technological Factor.

PEST Analysis Political Factors:

It includes rules and regulation by the government. Every organization can run it’s operation sucessfully when it follows the laws rules and regultion related to them.

PEST Analysis Economic Factor:

Every organization have impact by it’s 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 packing’s 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 AnalysisTechnological Factors:

This factor also effects enviroment. Technology brings competitive advantage for any organization.

Porter’s Five Forces Model

Porter’s Five Forces Model

Threat Of New Entrant Cost and capital. Specalist knowledge. Technology protection New idea.

Bargaining Power Of SupplierBargaining power of supplier is effected by

different factors. i.e no. of suppliers. Most of the time companies own supply of raw material.

Barganing Power Of BuyerAn indiviual buyer can’t effect the indutry while

large no. of buyer have more power with the industry. There are large no. of milk supplier in the market so there is less barganing power of buyer.

Avalibility Of SubstituteThe 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.

Competitive Rivarly Within The IndustryThe food industry is highly competitive. The

difference between 1 food company to other is not that much.companies try to beat with low cost, quality and customers satisfaction.

Any Question?