Engro Foods Pakistan

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Executive SummaryExecutive Summary

The repot at hand provides useful insight about Engro Foods Pakistan Ltd,

Established in 2006, a 100% owned subsidiary Forces in the external environment

that affect companys performance are, political, economic, social and technological

whereas company-specific external forces are Major Players in the food Industry,

which are ten in number; Our competitor Nestle has the 39%market share. Typical

packed milk consumers are the children. Therefore, Engrofoods has a large number of

consumers throughout the country.

After the introduction The EFL mission and vision statement, External and internal

audit steeple analysis, situational analysis ie.SWOT analysis of the company has

been done. The company core competencies also discussed.

Engro Businesses:

Our diversified businesses represent our immense growth potential to generateopportunities for creating and sustaining value for our stakeholders.

Engro Fertilizers Limited:Engro Foods Limited:Engro Polymer & Chemicals Limited:

Engro Powergen Limited:Engro EXIMP Private Limited:Engro Vopak Terminal Limited:Avanceon Limited:

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http://engro.com/our-businesses/engro-fertilizers-limited/http://engro.com/our-businesses/engro-foods-limited/http://engro.com/our-businesses/engro-foods-limited/http://engro.com/our-businesses/engro-foods-limited/http://engro.com/our-businesses/engro-polymer-chemicals-limited/http://engro.com/our-businesses/engro-power-gen-limited/http://engro.com/our-businesses/engro-EXIMP-pvt-limited/http://engro.com/our-businesses/engro-vopak-terminal-limited/http://engro.com/our-businesses/avanceon-limited/http://engro.com/our-businesses/engro-fertilizers-limited/http://engro.com/our-businesses/engro-foods-limited/http://engro.com/our-businesses/engro-polymer-chemicals-limited/http://engro.com/our-businesses/engro-power-gen-limited/http://engro.com/our-businesses/engro-EXIMP-pvt-limited/http://engro.com/our-businesses/engro-vopak-terminal-limited/http://engro.com/our-businesses/avanceon-limited/


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History:Engro is one of Pakistans most progressive, growth oriented organizations, yet we

never forget where we came from. Our history is a part of who we are today. Our diverserange of companies represent our rich legacy of innovation and growth.

We are proud of our heritage and experiences, as these are the things that define whowe are and where we are going.

From Esso to Engro:

Engro Chemical Pakistan Limited is the second largest producer of Urea fertilizer inPakistan. The company was incorporated in 1965 and was formerly Exxon Chemical

Pakistan Limited until 1991, when Exxon decided to divest their fertilizer business on aglobal basis and sold off its equity of 75% shares in existent company. The Employees ofEngro, in partnership with leading international and local financial institutions bought outExxons equity and the company was renamed as Engro Chemical Pakistan Limited.Engro is a public limited company listed on the Stock Exchanges of Karachi, Lahore andIslamabad.

Engro Foods Limited:

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Engro Foods is subsidiary of Engro Chemical Pakistan Ltd. which is one of the mostreputed enterprises in Pakistan with more than 40 years of diversified business operationsin the areas of fertilizer and chemicals. Engro Foods started its business operations in

March 2006 and with the successful launch of Olpers Milk, Tarang, Olwell, and Olperscream, it has established itself as a major player in the foods business. Engro Foods hasalready set up two processing plants at Sukkur and Sahiwal. With the ever expandingmilk collection network and processing facilities, the Supply Chain has geared us for thegrowing sales of our products.

We believe that our recent successes will take us to our goal: To be one of the biggestplayers in the food business. Our aim is to dominate the food business, and to achieve thiswe will settle for nothing less than the cream!

Engro Foods vision is Elevating Consumer Delight Worldwide and the Company

aims to generate a significant portion of its revenue from foreign operations.

CORE COMPETENCIES & KEY SUCCESS FACTORS:

There are several core competencies of EFL given below;

EFL foods Pvt. Ltd has been able to build a good brand name in a number ofyears. There are several consumers who are loyal to the brand and do not shift toother brands

EFL. Is only the recognizable food company which is doing business without

interest, which means that they do not take loan.

EFL has one of the most modern plants which has the latest technology and has ahigh production capacity.

HFL has one of the most extensive distribution networks across the nation. It has

one of the best distributions..

.KEY SUCCESS FACTORS:

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Research & Development

Financial Position

Market Share

Product Quality Price Competitiveness

Management

Global Expansion

Customer service

Network Sales And Distribution

Production Capacity

Alliances

Location:

Head Office:

Engro Foods Limited6th Floor, Harbor Front BuildingMarine Drive, Block 4, CliftonKarachi, Pakistan.

At A Glance (as of December 2009):

Total Employees: 928

Sales Revenue: Rs. 15,900 Million

Investments: Rs. 153 Million

Profit After Tax: Rs. (434) Million

Stock Ticker:

Engro Foods Limited is a fully owned Subsidiary of Engro Corporation and is not tradedon the stock market.

Companies:

Engro Foods Supply Chain (Private) Limited.

Executive Officers:

Sarfarz Ahmed Rehman Chief Executive Officer.

Our People:

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People at EFL are very dynamic and vibrant with an attitude of challenging the norms, atthe same time these people are highly professional, ethical and result oriented. These arepeople who want to shine, make a name for themselves and for that they are willing to go

the extra mile.

Values that we liveby

Core ValuesCore Values

Our employees performance can only flourish in a sound work environment. That is whyEngro is committed to supporting it leadership culture through systems and policies that

foster open communication, maintain employees and partner privacy, and assureemployees health and safety.

1. Leadership2. Innovation3. Diversity and International focus4. Quality5. Continuous Improvement

6. Candid and open communications7. Individual growth and development8. Enthusiastic pursuit of profit9. Ethics and integrity10. Safety, Health and Environment

Vision:

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Elevating Consumer Delight Worldwide".

Mission:

Build Branded food business to improve quality of life by offering tasty, affordable andhighly nutritional products to our consumers while maximizing stake holders' value .

Planning:

In Planning Engro managers engage in planning, they define goals, establish strategiesfor achieving those goals and develop plans to integrate and coordinate activities.In Engro Pakistan all the mangers are involve in planning function. The chairman withthe help of all the directors set some long term as well as short term goals, and then thedirectors and manager make the strategies to accomplish such goals.

Objective and goals:

Engrofoods main objectives are to supply everyone their favorite olpers Milk andto satisfy the consumer needs and wants. Engrofoods second main objectives areto 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 whichis also evident in our vision, "Elevating Consumer Delight Worldwide". EFLwants to challenge the industry norms and surprise whoever has eyes on EFL.

STRATEGIC Internal and external Audit:

i. STEEPLE Analysis:

No organization exists in a vacuum; the environment within which the firm has to operatewill affect the way that strategy is both planned and carried out and changes in theenvironment is also the most likely reason for making changes in the strategy. Changes inthe environment are also the most likely cause of failure of strategic plans Engro Foods

like all the organizations they also have to face such kind of environment which is verydynamic. And they have planned to face such dynamic environment.

S - Social Factors:

Engro food has helped to bring about a change in life style of the Pakistani People byintroducing UHT (Ultra High Treatment) Milk, as the literacy rate is improving and it isresulting in a better awareness of the olpers and Tarang UHT treated milk and is helping

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them improve their sales and Milk with its basic benefits has helped improve the imageand more usage has been seen in the past years.

T - Technological Factor:

. Engro food administrators claim that their plant adopted the latest technology for milkprocessing and thus it had an edge over other around twenty plants in competitionincluding Haleeb, Milkpak as all other plants were based on obsolete Europeantechnology. The idea behind UHT investment was to provide consumers with the bestquality of packaged dairy and food products that no other company can produce.

E - Economical Factor:

Engro Foods is strongly affected by both the Economic and the Demographic

environment around and have to keep on taking different steps to respond accordingly.

E - Environmental Factor:

. Engro Foods like all the organizations they also have to face such kind of environmentwhich is very dynamic.Engro foodhas a friendly environmental culture within theorganization to make their employees comfortable and to deal with the external problems.There are few seasons in which the availability of milk reduces that effect the productionof milk and left Engro food with fluctuated sales.

P - Political Factor:

Engro foodalso abides by the rules formed by the Government and set their strategiesthat are according to the laws and legislations of the Government. Engro foodabides tolaws set by the government for trade policies, government policies and completes itsresponsibilities in a better manner.

L - Legal Factor:

Engro foods always stand by the rules and legal conditions imposed by the Governmentand set their strategies that are according to the employment laws and legislations of the

Government they are working under.Engro foods have the legal laws like, Minimumwage, working time.

E - Ethical Factor:

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Engro foods are well renowned company operating in the milk industry since 2002. Andthe reason for this is importantly their ethical values. They dont sale on credit or oninterest because they consider it unethical and not according to the law of our religion.

PORTERS FIVE FORCES MODEL:

1. THREAT OF NEW ENTRANTS:

The threat of new entrants lies within the food industry itself. Some companies havecarved out niche areas in which they underwrite dairy supply. These food companies arefearful of being squeezed out by the big players. Another threat for Engro food companyis other food services companies entering the market.

Capital requirements:

Competing in a new industry requires resources to invest. Production of packed productsrequires huge investment of financial, human, technical, and marketing resources. At themoment Engro Olpers have some threats like from new entrants goodmilk product ofshskargang food.

2. BARGAINING POWER OF SUPPLIERS:

The suppliers of Engro food might not pose a big threat, because of the reasons;

Number of suppliers:

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Raw milk is standard commodity and is available in the open market from a large numberof milkmen. If anyone refuses to sell its product then Engro foods can buy it from otherswho are already willing to sell to company.

Importance of volume to supplier:

Suppliers also have less leverage to bargain over price becausetheEngro foods ispurchasing the large volume of their milk and suppliers dont have much option to sellmilk to others.

3. BARGAINING POWER OF BUYERS:

Engro food always consider the bargaining power of buyer before set the price.

4. AVAILABILITY OF SUBSTITUTES:

This one is pretty straight forward, for there are plenty of substitutes in the food industry.Most large food companies offer similar suites of services. Companies focusing on nicheareas usually have a competitive advantage, but this advantage depends entirely on thesize of the niche and on whether there are any barriers preventing other firms fromentering.

5. COMPETITIVE RIVALRY:

The food industry is becoming highly competitive. The difference between one Food

Company and another is usually not that great. As a result, food industry has becomemore like a commodity . In case ofEngro foods so far nestle and hale are the onlydiverse rival and another players that has just joined the UHT Milk sector is goodmilk, nodoubt the competition between Engrofoods and Haleeb is quite intense both are engagedin consistent homework just to break and attract the customer towards each other

SWOT Analysis:

Strength:

Engros back.

Olpers is a brand ofENGRO foods. This means that consumers can relate their formerimage ofENGRO foods to Olpers. ENGRO is a well established brand name inFertilizer, IT and infrastructure business. ENGRO foods can easily afford research anddevelopment costs for Olpers have in order to introduce new products. It can alsodistribute the brand through better channels because of its long term relationship withdistributors in the agriculture sector.

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Positive response from customers:

In first year, EFL crossed 1.4 billion sales figure which shows customers satisfaction

upon EFLs products. 4. Its taste, quality proposition and world-class quality propositionsystem.

Strong consumer & product research:

Olpers done a strong consumer & product research before and after launching theproduct. This has provided them the perfect launching pad to eventually emerge as aglobal player in the food industry. To develop its future portfolios, EFL has hired variousglobal research partners like AC Nielsen, Mindshare, JWT Asiatic and MARS marketingand advertising agencies.

Third-Generation Plant:

EFL only, has the third-generation UHT milk plant in the country. EFL plant is theonly plant in Pakistan that uses Bactofuge technology to virtually eliminate bacteriaand ensure premium quality and hygiene.

Weaknesses:

Owning Red Color:

The company has not owned the color red like Nestle has a green Milkpak; Haleeb has ablue carton etc. This may create problems because when a consumer enters a groceryshop, then he/she might have problems in recalling the brand because there is no colorassociation attached to Olpers. The company may need to find a suitable color in whichto focus its upcoming marketing strategies.

Low Quality Milk:

EFL is not having its own dairy farms; it largely collects loose milk from farmers &gwalas through its 40 milk collection centers, which sometimes is of low quality andimpure because they add vegetable oil to milk to get higher prices.

Packaging:

EFL is dependent upon Tetra Pak for the packaging of its entire dairy products. Tetra Pakis the only option available to Olpers for packaging because it is having monopoly in thepackaging sector in Pakistan. Due to this reason, Tetra Pak can charge them higher and itcould increase the production costs.

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Milk collection & distribution costs:

EFLs 34 out of 40 milk-collection centers are located in Punjab, where as its only milk

processing facility is situated near Sukkur (Sindh). It increases the milk collection &distribution costs; and also increases the chances of milk getting spoiled because ofincreased traveling time.

Narrow brand portfolio:

It has been more than a year now, when EFL launched its first dairy product, OlpersMilk on March20, 2006. But EFLs brand portfolio still consists of just 3 products i.e.Olpers Milk, Olwell Milk and Olpers Cream.

Opportunities:

Increased funding by Government:

Government has decided to increase farmers funding. This is an opportunity forENGRO foods because previously due to weather conditions and other reasons there waslots of wastage of milk but now that can be reduced as farmers will be better able to storemilk for longer time periods.

Awareness:

Growing dissatisfaction with loose milk and increasing awareness about health andhygiene issues have led to increased processed milk consumption.

Third largest producer of milk:

Pakistan is the Third largest producer of milk in the world with a total production of 32billion liter of milk a year, whose value is more than that of the combined value of wheatand cotton, This is quite an opportunity forENGRO foods as there is lot of growth inthis part of the sector.

Threats:

Competition:

Competition may pose a threat because the company will have to maintain its leadershipin an expanding market so that it doesnt lose its market share to its competitors. For

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Olpers it might be difficult to penetrate in a market where the loyalties exist for suchbrands as Nestle and Haleeb.

Perceptions and Price Differentials:

Consumers perceptions and price differentials can cause a threat for the company. It isimportant that Olpers comes up to the expectations of the customers and fulfills itsconformance quality that is the company meets its promised specifications. Consumerspreferences change with time and prices might create certain barriers in terms of theprofit margins for Olpers.

. COMPETITIVE ANALYSIS:

The strategic priorities of Nestle Pakistan are claimed to be focused on delivering

shareholder value through the achievement of sustainable, capital efficient and profitablelong-term growth. Improvements in profitability would be achieved with due respect toquality and safety standards at all times.

Nestle Pakistan envisions that the company should develop an extremely motivated andprofessionally trained work force, which would drive growth through innovation andrenovation. Special training programs have been designed for employees at each level tokeep up with and develop this vision.

Long term Planning:

Engro Foods expansion on a bigger scale:

Engro Foods Limited who had recently set up Dairy industry in Central Sindh (UHTMilk plant) by investing about Rs one billion, further plans to set up a similar set up inCentral Punjab and also emerging as Food Giant firstly on National Level and secondlyas world class International Food Giant by adding a large number of other food productsthrough investment of $200 million plus, probably envying to emerge as an internationalfood company on similar lines as NESTLE did. The company plans exporting itsproducts to central Asia and Middle East.

ORGANIZING:Managers are also responsible for arranging and structuring work to accomplish theorganizations goal. This is known as organizing. When mangers organize, theydetermine what tasks are to be done, who is to to do them, how the tasks are to begrouped, who reports to whom, and where decisions are to be made.

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In organizing managers at Engro allocate and arrange human and non-human resourcesso that their plan can be carried out successfully. Like it allocate the machinery andadvanced technology in production unit that must be a relating to accomplish our

goals.

1. . Administration:

Efficient management of all administrative affairs ofEngro Foods (Pvt.) Limited is thejob of the Administration department. From legal matters to general day-to-dayoperations of the office, the Administration department ensures that all affairs runsmoothly.

2. Finance and Accounts:

The Finance and Accounting departments at Engro Foods are responsible for the totalfinancial management of the different businesses of the company. From the usual

accounting statements and sheets to risk and portfolio management, the team ensures thatevery rupee coming into and out of the Companies' pockets is properly documented andaudited.

3. Human Resource:

The Human Resource department at Engro Foods (Pvt.) Limited spearheads therecruitment process to ensure that the finest human resource is taken on board at EngroFoods. Resumes of candidates are carefully filed and documented for current or futurereference. The department, besides carrying out succession planning, maintains andimplements HR policies pertaining to employment, retention and superannuation.Assessing training needs of employees and ensuring adequate training is also carried out

by the professional HR team at Engro Foods.

4. Marketing:

Consisting of leading marketing professionals of the industry, who are graduates of topbusiness schools of Pakistan, the Marketing Department ensures that from product needidentification to product development, launch and post-launch, all strategic decisions aremade based on authentic information and research. Identifying the target markets,effectively communicating to them and building the image of the brands as well as theCompanies, is the job of the professionals running the marketing at Engro Foods.

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5. Milk Procurement:

As all of our food products are milk based, the entire Milk Procurement department playsa critical role in defining the quality of the end product that reaches our customers.

Ensuring regular collection of fresh and pure milk right from the farmer to the factoryand ascertaining the freshness of milk all across the milk procurement process, is theresponsibility of Milk Procurement department, consisting of food technologists workingat the collection centers and veterinary doctors providing service to the farmers.

6. MIS:

The MIS department at Engro Foods ensures that all automation is running error-free atall times. Regularly modifying and updating the Company's accounting software is alsothe MIS team's responsibility.7. Production:

Modern technology is part and parcel of Production at Engro Foods. The state-of-the-art

plant set up near Sukkhar has a processing capacity of more than 300,000 litres of milkper day, making it one of the largest in the country. Professionally qualified humanresource efficiently works night and day to maintain highest hygiene standards.

8. Quality Assurance:

Quality Assurance is strictly followed in Engro Foods. Qualified food technologists atthis department ensure that highest quality parameters are adhered to through all steps ofproduction and that the products reach the consumers as per promise.

9. Supply and Distribution:

This department ensures timely and effective distribution of the products to different

shops and stores spread all across Pakistan. From transportation management to obtainingroute permits and approvals, is done by this department.

Human Resource Management:

2009 was one of the most challenging years for businesses in Pakistan owing largely tothe global economic slowdown, energy crisis and security situation in the country.Workers become the first victim of a precarious and uncertain economy.But EngroFoods hire the employees in 2009.. With the Grace of Allah, Engro Foods was able tocontinue its strategic imperative of investing in its people and there was not a singlelayoff at any level. We believe that the extraordinary production, sales and safety recordsachieved during the year are the outcome of the combined efforts of a highly competentand committed workforce operating in a performance driven high-energyenvironment .We hire employees considering them as soft assets in the company whowill manage and optimize the use of the hard assets of the company in future. Employeesare the only physical assets that appreciate in value. As the employees, learnmore andmore about the business and about their own role, their performance increases over thetime. Following is a brief description of HR related initiatives undertaken during the year:

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Organization Chart

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16

PRESIDEN

T

CEO


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LEADING:Every organization includes people, and mangers job is to work with and through

people to accomplish organizational goals. This is leading function. When mangersmotivate subordinates, help resolve work group conflicts, influence individuals or teamas they work, select the most effective communication channel, or deal in any way withemployees behavior issues, they are leading.

Managers at Engro influence others work behavior. Labours and subordinates to getoptimum task achievement even by satisfying them accordingly.

MOTIVATION:

HERZBERGS THEORy APPLICATION ON ENGRO FOOD:

According to Engro motivation is nothing new its a force which derives people towardsachievement.We are not only working for our self or for Engro but we all are working

REGIONALMANAGER

AREAMANAGER

TERROTIRIESMANAGER

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VICE

PRESIDENT

GENERAL

MANAGER

ZONALMANAGER


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for Pakistan.

MOTIVATION FACTORS THAT REVOLVES AROUND ENGRO

and THEORY Y:

As per the Engros environment suggest every factor that revolves in itsAtmosphere has two impact that is the positive and negative.

1. Flexibility

2. Environment3. Top-level managers

FLEXIBILITY:

Engro provide its workers full flexibility, they are result oriented. Theywant their workers to perform their task efficiently and effectively. In organization asthey give their workers the space to perform their task according to their owndetermination and giving best results to the organization in which they never compromiseabout their success.

TIME:

Engro do not care what time the workers enter or leave the office premises.They are only concern with the result which they are expecting. Employers there,are given a time period in which they have to complete their. They are goaloriented. They are least concern with the time employees spend in office.

WORK:

Work environment in Engro is challenging yet attainable, currently the Engrofood is operating nine business units and is making a tough time for its competitor.Example of Olpers, a product ofEngro foods can explain it clearly as it has givena tough time to NESTLE and HALEEB.

TWO FACTORS THEORY AND ENGRO WORKING ENVIRONMENT:

At Engro, they strive to uphold the tradition of excellence and become theemployer of choice. There is a workplace where there employees feel confident,valued, and most importantly, inspired

FAMILY:

They treat every employ as a part of their own family, whether it is managerialor non managerial employees, each one is treat respectfully and given equaldeferentially, courteously, graciously and politely.

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WORK LIFE BALANCE:

They understand the importance of family and appreciate that their employees

need to balance their professional and personal responsibilities. It is Engros intentto make it easier for their employees to manage their work/life balance moreeffectively. Engro also encourage their employees to take part in numerousprograms aimed at strengthening their overall wellbeing.

EMPLOYEE FRIENDLY POLICY:

There constant pursuit towards the welfare of their employees has led to theformulation of many unique policies, to create a more positive work environment,promote greater gender diversity, provide opportunities for training anddevelopment and build career opportunities. Such policies include ethics policy,

gift policy, non-discrimination and anti-harassment policy, maternity leave policy,part time work policy and off track policy.

ENGRO WOMEN NETWORK:

Professionally Engro believes that networking, coaching and mentoring provideopportunities for people to grow personally and throughout their careers at Engro.Engro is known to be an equal opportunity employer. As part of their diversityinitiatives, WEAVE was formed to facilitate informal networks and relationshipsamong women employees of Engro across functions and affiliates.

CEO:

If the head or the upper management in an organization are simple, piratical, humble,realistic, down to earth, that is the CEO of the Engro foods MR. SARFARAZ as seen bythe workers in the office said that for the past 3years he has being seen in 3 shirts and 3pants. Then obviously there wont be any artificiality in the air due to this reason theworkers are satisfied with their jobs and are motivated. Lets take an example of the EFLdinner where the CEO was standing along with the tea boy and the tea boy was asked tocut the cake and do the cake cutting ceremony.These factors explains that Herzbergs Theory of motivationis also present in

the organization which satisfy all the workers with their jobs and are given suchfacility which leads them to job satisfaction, job reorganization, personal and jobsecurity and good relationship with the sub ordinates and upper level management.All the Motivational and hygiene factorsare full filled with in the organization.

MOTIVATION IN ENGRO AT DIFFERENT LEVELS:

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In Engro the managerial employees and non managerial employees are being alsomotivated through following factors.As the other companies Engro offers its employees:

Mobile phonesCompensation carField carCar earned out

Bonus which are performance drivenShare option at higher levelAnnual leavesSalariesMedical, spouse and deadly disease like cancer and heart

Allowances, provident funds

Leadership:We have leaders of high integrity, energy and enthusiasm who have the necessarymanagerial, professional and people skills to inspire a group or an organization to sethigh goals and achieve them willingly. We believe that leadership skills need to bestrengthened at all levels within our organization and that managerial and professionalcompetence is a necessary foundation.

INDIVIDUAL GROWTH & DEVELOPMENT:INDIVIDUAL GROWTH & DEVELOPMENT:

We strongly believe in the dignity and value of people. We must consistently treat each

other with respect and strive to create an organizational environment in which individualsare encouraged and empowered to contribute, grow and develop themselves and help todevelop each other.

Communication Network:An understanding of managerial communication isnt possible without looking at thefundamentals of organizational communication. Communication within an organizationis often described as formal or informal.

Formal Communication:

Communication that follows the official chain of command or is required to do ones job.

Informal Communication:

Communication that is not defined by the organizations structural hierarchy.

Communication Network:Communication Network:

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The vertical and horizontal flows of organizational communication can be combined intoa variety of patterns called communication networks.In Engro Pakistan all channel network is working because they think that employees are

our most important asset of our organization. All the company policies and information isshared with the employee thats why they are going to progress. Engro Pakistan is one ofthe leading organizations in Pakistan and has a good communication network within theorganization as well as outside the organization. They are always in touch withemployees and shareholders for the betterment of organization. From bettercommunication network there logo Growing with Pride is fully understandable

Candid and Open Communications:

Engro foods value communications that are courteous, candid and open and that enableeach of us to do our jobs more effectively by providing information that contributes to the

quality of our judgment and decision making. Effective communication should alsoprovide the means for gaining understanding of the company's overall objectives andplans and of the thinking behind them.

Individual Growth and Development:

Engro foods strongly believe in the dignity and value of people. We must consistentlytreat each other with respect and strive to create an organizational environment in whichindividuals are encouraged and empowered to contribute, grow and develop themselvesand help to develop each other.

Teamwork and Partnership:

We believe that high-performing teams containing appropriate diversity can achieve whatindividuals alone cannot. Consciously using the diversity of style, approach and skillsafforded by teams is a strength, which we must continue building into our organization.

Employees Welfare:

16 employees performed Hajj under Company's Hajj Scheme. A total of 357 employeeshave performed the sacred pilgrimage since 1988 under this scheme. This year, 36employees performed Umrah under Company's Production Incentive Umrah Scheme

making the aggregate of 336 employees since the inception of the scheme in 1997. Underthis scheme, four employees are sent for Umrah in the month when a specifiedproduction target is achieved.

CONTROLLING:The final management function is controlling. After the goals and plans are set(Planning), the tasks and structured arrangements determined (Organizing), and the

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people hired, trained and motivated (Leading), there has to be some evaluation ofwhether things are going as planned. To ensure that goals are being met and that work isbeing completed as it should be, Engros manager regulates organizational activities so

that actual performance conforms to expected organizational standards and goals themangers must monitor and evaluate performance. Actual performance must be comparedwith the previously set goals. If there are significant deviations, its managements job toget work performance back on track.

Negotiator at Engro represents the organization in major negotiation affecting themanagers area of responsibility means negotiator talk to external affecting factors tomaintain and improve the Engros alacrity.

According to Mintzberg Theory

So far managers are performing the roles of symbolic duties, like figurehead, liaison etc.Managers perform informational and decisional skills applying inside and outside theorganization.

1. Interpersonal Roles

Figurehead at Engro performs symbolic duties of a legal and social nature. They areBoard of Directors, Chief Executives, and Financial Managers etc.

Leaderbuilds relationship with subordinates and communicates with, motivates andcoaches them that how all employees can improve their professional skills in Engro.

Liaison maintains network of contacts outside work unit who provides help andinformation to other organizations and build good relation for Engro SalesPromotion.

2. Informational Role

Monitor at Engro seeks internal and external information about issues affectingorganization.

Disseminatorat Engro transmits information internally obtained from either internalor external sources, so that all employees go through by all current situations.

Spokespersonin Engro transmits information about the organization to outsiders sopeople and other organizations can reach its features, benefits etc.

3. Decisional Role

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Entrepreneuracts as initiator designer and encourager of change and innovation inEngro to promote diversity and best selling.

Disturbance handler Takes corrective action when organization faces important,unexpected difficulties at Engro like Technical or Mechanical fault, Labor unionissues, Labour health issues etc.

Resource Allocator in Engro distributes resources of all types including time,funding, equipment and human resources so that services with in the organization andout side the organization should be manage in proper order to get maximum outputfrom given resources and material.

Board Audit Committee:

The Board Audit Committee assists the Board of Directors in monitoring the frameworkof managing business risks and internal controls. The Committee also assists the Board indischarging its statutory and other responsibilities relating to internal controls, financialand accounting matters, compliance, and business and financial risk-management. As perlatest scope of Internal Audit, it is no more police function rather it keeps the heads ofvarious functions of the Company to perform their duties more efficiently and diligently.The Board Audit Committee of the Company comprises of four members. The Board ofdirectors is responsible to ensure that majority of the members of the Committee arefinancially literate and possess the professional skills and personal characteristicsnecessary to carry out their duties as members of the Committee. The Board recognizesthat it is desirable that at least one member of the Committee be a financial professional,

with accounting and auditing or related financial management expertise.

Internal Audit:

The Internal Audit department comprises a team of 4 staff members, including the ChiefInternal Auditor. The Internal Audit plan is reviewed and approved by the Board AuditCommittee. The reviews performed by Audit are aimed at assisting the Board inpromoting sound risk management and good corporate governance, through assessing thedesign and operating effectiveness of controls that govern key business processes andrisks identified in the overall risk framework of the Company. Internal Audit's reviewsalso focus on compliance with the Company's policies, procedures and regulatory

responsibilities, performed in the context of financial and operational and informationsystems reviews..

The functions of the Committee shall include the following:

To review and approve the Chief Executive and Senior Executives' compensation;

To establish all components of compensation for directors and recommend changes to

the Board;

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Board Compensation Committee:

The Board Compensation Committee assists the Board in carrying out its responsibilities

with respect to salary and other perquisites of the Company's senior executives. It alsoassists the Board in matters regarding compensation in relation to retirement and, welfareand other benefits plans.

Human Resource Committee:

The Human Resource (the HR) Committee assists and makes recommendations to theBoard of Directors on matters relating to organizational structure, managementdevelopment, succession planning and establishing compensation policies.

Engro foods have launched an organization-wide drive to manage different categories of

waste. Separate bins have been provided for this purpose.

Paper Waste:

A campaign is underway to minimize the use of office paper and recycle the waste.Paper waste is being collected and will be sent to some paper mill for recycling andmanufacturing of office stationary.

Metal Waste:

Metal waste is stored at the scarpyard and then sold for recycling.

Glass Waste:Glass, plastic and rubber waste is disposed off in an environment friendly manner.

Standards:

An Engro food trains its employees every year. we have seat belts at every vehicles andwe have Temperature gates at every supply centre and store and also working properly.we collect pure milk from central Punjab cities (Sialkot, Gujarawala, Sialkot, Okara andSakur etc )

Comparison of Sales:

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0

24

6

8

10

12

14

16

2006 2007 2008 2009

Company Market Share (%)

Engro 41%

Nestle 39%

Others 20%

0%

10%

20%

30%

40%

50%

Market Share (%)

Engro

Nestle

Others

Years Sales (in Arab)

2006 3

2007 7

2008 11

2009 16

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MilkPak

43%

Olper's

23%

Good Milk

16%

Haleeb13%

Others

5%

Actions:

Engro food company write a report of every employees in every year. If a employ doesnot work properly or not obey or fulfill the company requirement then maximum threetime report it and company dismiss the employ. company inspectors inspection the worksof employees and also check the relationship with customer through legally process. Ifour product expire the date or any other default the company pays the full price of

product but others company pay only 50% of its price.

Social Responsibility:

Corporate Social Responsibility is at the heart of ENGROs work. We believe in workingwith all the stakeholders to improve their quality of life, in a way that is both good forbusiness and development. We also believe in earning the trust of our stakeholders byacting responsibly within the communities that we serve.

Environment Excellence Award-2009

The Companys efforts for protecting the Environment were acknowledged by theNational Forum for Environment and Health (NFEH) by awarding DHCL the 6th AnnualEnvironment Excellence Award 2009

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Help for IDPs of Swat and Wana:

The military action against the militants in Swat and Wana unfortunately resulted in thebiggest ever displacement of the innocent and peace loving people of Swat. Theseinternally displaced persons (IDPs) were accommodated in make shift camps where theystruggled to cope with the rigors of living refugees' life in their own country. The CSRCommittee decided to send food and essential household items to bring some relief in thelives of some of these IDPs.

Land for Forest Fruit Plantation Wheat Cultivation

We have dedicated around 50 acres of land solely for the purpose of tree plantation.During the past four years,approximately 50,000 trees have been planted. Most of thesetrees have reached the self-sustaining stage. This year another 6000 trees were planted on3 acres of land.

Water Purification Plant

Drinking contaminated water is one of the major health risks in the Third Worldcountries. As a CSR initiative, DHCL has so far installed five Water Purification Plants,three in villages around our Plant and two in Hospitals of Lahore (Mayo and ChildrenHospital).

Education Programs:

Ali Institute of Education, Lahore and The Citizens Foundation are the major partners ofENGRO in educational interventions. A brief description of the educational projects led

by ENGRO is as follows:

Katcha Schools:

The program started off as an informal education program in Katcha (riverine) area ofIndus in Ghotki district with 2 schools in 2001.

Training and Resource Centre:

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Training and Resource Centre is the only teachers training facility in Ghotki district.Since its inception in 1999, more than 2500 teachers of Ghotki district have been trainedat the centre. A team of 4 full time PDTs carryout general and subject specific training

sessions.Sahara Welfare Society:

Sahara Welfare Society, a non-profit voluntary organization managed by companyemployees at Daharki, runs a primary school, vocational training school and a free clinic.

Health Programs

General availability of health facilities is less for growing population of Ghotki district.With this view ENGRO has developed a number of health infrastructural programs:

Dialysis Centers at Daharki and Mirpur Mathelo:

Responding to the President of Pakistan and local governments desire for enhancedcorporate support for Ghotki and surrounding areas, company constructed its seconddialysis centre at District Head Quarter Hospital Mirpur Mathelo in 2004, at a cost of Rs3.5 million

Tele-Medicine Project

The Company initiated work on the first Telemedicine project in 2004 that providesdelivery of health care services to selected rural areas from specialist doctors in Karachiusing communication technologies for diagnosis, treatment and prevention of diseases.

References:1. Strategic Management concept and cases by FRED R DAVID 12 th edition.2. Marketing Management by Kotler 11th Edition.3. http://www.scribd.com

4. www.olpers.com.pk5. www.engrofood.com.pk6. www.engrochemicals.com7. www.docstoc.com

8. www.google.com9. www.wikipedia.com

10. HASSAN RAZA ( Area manager)0302 8545796
http://www.olpers.com.pk/http://www.engrofood.com.pk/http://www.engrochemicals.com/http://www.google.com/http://www.wikipedia.com/http://www.olpers.com.pk/http://www.engrofood.com.pk/http://www.engrochemicals.com/http://www.google.com/http://www.wikipedia.com/

Engro Foods Pakistan

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