Fundamentals of Management

Final Project

Submitted by:
Samer Shahzad (L1F18BBAM0056)

Muqaddas Butt (L1F18BBAM0071)

Zain Saleem (L1F18BBAM0050)

Submitted to:
Mam Huma Khan

Topic

ENGRO FOODS
Industry Overview

 The food and its allied products industry is considered Pakistan's largest industry
 Pakistan's food industry produces cooking oils, sugar, flour, dairy products such as milk,
butter, yogurt, cheese and ice-cream, biscuits, breads and confectionery, fruit juices and
fruit juice drinks, carbonated beverages, snack foods based on rice, potatoes, corn and
pulses, processed chicken, jams, jellies, squashes, sauces, pickles, and some canned
fruits.
 Pakistan is the 4rth largest milk producing country in the world.
 An estimated 33.25 billion liters of annual milk is produced.
 Approximately 50 million animals managed by 08 million farming households.
 The milk economy represents 27.7% of the total value of the Agriculture sector.

Vision Statement

Aim at transforming the company within five years into first national food industry giant,
then into regional force and finally into a global player.

Engro believes on building sustainability and globally oriented on green material solutions.
Engro focus on innovations relating to their products through strategic partnership, technological
researches and green initiatives.
Mission Statement

Provide quality of life by build branded food business by offering tasty, affordable and
high nutritional products to consumers and also maximizing stake holder’s value.

Engro Corporation has knowledge based and continuous learning culture. They work with their
partners on innovations and environment friendly green products that provide long term value,
customers benefits and sustainability.

Link between Engro Vision and Ethical Standard

Strong ethical standard is the reflection of company’s vision. Engro Corporation has clear vision
and code of conduct. Engro a globally oriented corporation focused on environment friendly
products believes on innovations and build sustainability achieve outcome without wasting too
much resources. Engro has positive influence through strategic partnership by involving
employees in decision making. Engro Corporation set goals to their employees that move
towards vision. Every employee know about ethics and during performing tasks employee are
required to ensure that they know code of conduct and it’s reflect through their performances.

Engro Corporation has highest ethical standards and it is necessary for all employees to behave
well and in case of any violation in ethical code of conduct corporation has email
speakout@[Link]. Company make ethical standard to fulfill company’s vision that’s why
Engro believes on ecofriendly environment focused on green material solutions and by training
employees how to behave? How to achieve organization goals and vision by engaging
employees in decision making and by awareness of ethical standards Engro concern about high
ethics and by using less resources (sustainability) they achieve their vision.
Why is it important for top management to put forth a clear vision and ethical
standards for a company?

Strong Ethical standard is reinforced by company’s vision. It is important for top management to
make and document rules and regulations and also circulate copy of that rules and regulation
among employees. Provide ethical trainings to employees and then if someone violates rules you
can punish them. But the first thing if you as a top management follows ethics as a leader your
employees automatically adopt them.

A lot of organizations punished due to lack of ethical leadership it is top management

responsibility to make sure about ethical standards. Your vision statement make sure to write
about something on ethical code of conduct. Sometimes organizations knows about ethical
standards but not implement them due to lack of ethical training. Top management should take
care about diversity like different ages, genders, race, and disability. If top management has no
discrimination among employees on age, disability, race, gender or any other reason its means
you are treating everyone equally that automatically create ethical code of conduct. If top
management develops flexibility like if your employees is also a student you can give them
flexibility of time to manage studies also. For disable employees try to make lifts while
structuring organization. Provide employee’s comfortable environment and give value to
employees.

If your employee is happy or satisfy with your organization that means your organization can
achieve their vision easily. Top management is responsible for ethical standards if top
management has high concern about ethics then employees are also responsible for code of
conduct. In this way you not only achieve organization goals and vision but also you can know
by your discipline. Many organization got success because they have high ethical standards. In
this way this is really important for top management to have clear vision and ethical standard.

Product line and Range of Engro Foods.

Engro foods product lines are Olpers, Omore, Tarang, and Dairy Omung.
Engro Foods Limited is engaged in the manufacturing, processing and marketing of dairy
products, frozen desserts and fruit drinks. The business has established several brands that have
already become household names in Pakistan such as Opler's (UHT milk, low-fat milk, cream,
desi ghee, lassi and flavored drinks), Omoré (frozen desserts), Tarang (tea whitener) and Dairy
Omung (UHT dairy liquid and dessert cream). These are the most trusted product lines their products
is trusted by millions of Pakistanis.

They promote their products by promotion strategy brand activation concerts and campus drives,
teaser campaign for 15 days, TVCs, Radio BTL, Trade and Retail Promotions, Billboards, Print
Media, Teaser Story line, Whistle tune ‘Taazgi Jagaa Re” and through social media.

COMPETITORS

Four major competitors of ENGRO COOPERATION are given below:

 NESTLE
 UNILEVER
 HALEEB
 SHAKARGANJ

COMPETITIVE ANALYSIS
  As a new entrant EFL focused more on advertising to compete with old ones like Haleeb,
Nestle.
 Nestle maintained its value of gross profit margin around or above 30% to ensure that it has
a strong control over its costs, and the efficiency of production. But on the other hand,
Haleeb faced a bit of down fall when Olper’s introduced their campaign.

Organizational Chart

CEO

MANAGER MANAGER
PRODUCTION MARKETING

FOREMAN FOREMAN SALES OFFICER SALES OFFICER

(FABRICATION) (ASSEMBLY) (B) (B)

Key positions:
It means the staff of organization with many duties. They work and compete their duties
according the top management. They work for same purpose to make their organization best and
to build maximum profit. There are some categories.

 Operations manager
 Environmental manager
 Accountants
 Office manager
 Receptionist
 Supervisor
 Marketing manager
 Professional staff

Numbers of employees:

 1 ,243 Employees
 Market Share of Dairy Products
 4 Provinces in Canada
 2nd Largest Company of Chilled Milk Collection of Pakistan
 2000+ Milk Collection Centers
 35,000 farmers directly linked with EFL
 2 Milk Processing Plants
 Milk Production Capacity is 700 Thousand Liters per Day.
 Total Assets Rs. 24,046 Million

Number of departments:

 Finance
 Human resources
 Production
 Supply & distribution
 Marketing
 Procurement
 Management Information System
 Production
 Quality Assurance
 Supply and Distribution

Production department:

Modern technology is the part and parcel of production at engro foods .the state of the art plant
set up near sukkhar has a processing capacity 300,000 liters of milk per day , making it one of
the most largest in the country. Professional and highly skilled staff is working at the production
department of engro to make best and clean food products. Production’s input includes money,
raw material and knowledge. The main supply is milked because their mostly product are dairy
products. An output are the products which converted into finish goods after processing. Engro
constrains include time, financials and Supply &distribution department.

Supply &distribution department:

The department ensures timely and effective distribution of the products to different shops and
stores all across the Pakistan.

Marketing department:

The marketing department work on making customers, relations with consumers, launch of the
products, tell customers about the product, making image in market, communication between
consumers and products most important they work to tell all information of the products.

Format: centralize or decentralize?

Engro involve their employees in decision making process and take action over the good ideas
and decisions of their employees so it means engro foods is decentralize.

PESTEL Analysis

POLITICAL FACTOR:

 EFL make strategies according to the laws and legislations.

 EFL abides to laws set by the government for trade policies, government policies and
completes its responsibilities in a better manner.
Economic Factors:

 EFL is strongly affected by both economic and Demographic.

SOCIAL FACTORS:
 EFL has helped to bring about a change in life style of the Pakistani People by
introducing Bactofuge technology
  People awareness program for Olper’s and Tarang Bactofuge treated milk, which helps to
improve the sale.
 Usage of open Gawala milk & standardized packed milk.

TECHNOLOGICAL FACTORS:
 Use of new technology gives firm their competitive advantage.
 EFL adopted Bactofuge Technology (Whereas Haleeb use UHT Technology)

ENVIRONMENTAL FACTOR:
 Environmental changes can cause failure of strategic plans.
 EFL is using environment friendly Technology.
 EFL has a friendly environmental culture within the organization to make their
employees comfortable and to deal with the external problems.

LEGAL FACTOR:
 Check government policy about milk industry.
 EFL strictly follows laws like, Minimum wage, working time, minimum working age, &
Environmental regulations

SWOT Analysis

STRENGTH:

 Good breed of buffalos and cows.

 4rth Largest Industry Dairy Industry in Pak.
 Pak Dairy Industry is Cheaper than Austria,
 America and other developed countries.
 Farmers are engaged in agriculture and dairy at the same time (corona virus situation)

WEAKNESS:
  Small and scattered animal holding at lockdown time.
 Prevalence of traditional raw milk marketing system.
 Milk processing predominantly dependent on obsolete UHT technology.
 Inadequate infrastructure and institutional facilities and support.
 Poor quality of animal health care and breeding services; lack of professional
management.

OPPORTUNITIES:

 Huge unsatisfied demand of milk and milk products.

 Increase consumer awareness of healthy eating.
 There is an opportunity for companies to introduce value-added products like ice creams,
flavored milk, dairy sweets, etc.
 There is a phenomenal scope for innovations in product development, packaging and
presentation.

THREATS:

 Unregulated imports of dairy products at cheap prices.

 Very low-quality milk is provided by the milkmen to dairy farms which is a very big
threat for the entire market.
 The shortage of milk providing animals is also a threat for entire milk industry especially
in current situation.

Product line of Engro Foods

In the beginning, Engro Foods sold only Milk but later it considered the demands of its health-
conscious consumers. The company expanded its products portfolio to provide more healthy
products include milk, flavored milk, lassi, milk powder, cream, ghee. It sells milk in different
forms including low fat, full cream, etc., considering consumer’s different health needs.
Engro Foods Sells a wide range of fruit nectars including apple, guava, mango, apricot, green
cocktail, orange and red grape. The other items it sells are fats, butter and frozen desserts in
multiple sizes. Along with these products, Engro Foods sells frozen meet in international
markets. The Engro Foods has the major ice cream plants in the Punjab province and has its own
dairy forms in the Sindh province

Product Mix of Engro Foods

These are the product mix of engro foods.

 Lassi.
 Flavored milk.
 Milk powder.
 Fruit juices.
 Ice creams.
 Milk.

ENGRO MARKETING STRATEGY:

The marketing strategy of Engro foods is consumer centric and this has made them a huge
success in the food industry. Under its promotional strategy, it has given special attention to its
packaging and marketing. The attractive and high-quality packaging is also colorful to make it
distinctive and eye catching. Tetra packs are used for protecting the flavor and freshness of dairy
products and that to in distinct colors like purple, orange, green and yellow. An Engro food
product is easily recognized at a glance. Engro foods have realized the importance of homemaker
in the scheme of their things and hence have been actively targeting the homemakers to buy their
products. The healthy milk products are a hit with them and the kids love the taste of its ice
creams.

Engro foods recognize the contribution of active advertising to make high sales. The vision of
the company is “Elevating Consumer Delight Worldwide” and for this purpose, it has taken the
help of print media to highlight its products in every nook and corner. Billboards magazines and
newspapers are an important part of their strategy. Besides this, they have created noticeable ads
that are colorful with catchy tunes and made them a part of the electronic media specially the
television and radio. Advertisements are also displayed on vehicles like the bus, trucks and
trains.

Distribution Chanel

Sells directly to the end user through retailers and shopkeepers. This is trend in Pakistan
followed by many FMCG’ Coverage. Engro products for the time being is only available in
limited areas on Punjab and available throughout Pakistan. The company started of its operation
in Punjab because it has the largest population. Transport Engro products are transported to
retailers and shopkeepers through private transportation firms and also through few trucks owned
by company locations; Available at large medium and small sized bakeries, grocery stores and
pharmacy in Pakistan. Sell their products directly to consumers using cycle and their own
personnel. This strategy has been in practice for many years and is being used by Walls and
Hico.

As a Manger of Engro Foods My Role in Current Scenario

If I am the manager of Engro foods in current situation corona virus is viral in our society which
is affecting our business and employees. Corona virus is affecting our employees financially,
morally and psychologically. It is my duty to save the jobs of our employees, so I should make
some strategies to protect and save the jobs of our employees. Firstly I will provide job security
to my employs. During lockdown make online channels for working. As a manager I will
provide training to my employees how to work online. Facilitate them with laptops or internet
source through which they can do their work easily from home. After lockdown it is my
responsibility as manager to provide employees proper protection like sanitizer doors, mask,
sanitizer, gloves. As a manager it is my duty how to tackle with these problems and provide
efficient solutions and facilitate employees and consumers and also try to gain profit by making
different strategies. These are given below

Leadership Style:
 Manager should provide face mask and sanitizer to employees. Make a social distance
between every employee and between employees and customer. This will protect your
employees with corona virus.
  Let them know you trust and depend on them also in this situation. They will fill those
shoes sooner than you think. Let them know you trust them to do the best job possible
and they will rarely disappoint you.
 Create a relationship between leader and employees like parent and child, this will
increase the satisfaction and trust in employees and increase the efficiency of
organization and in this situation try to develop flexibility with employees.

Organizational structure:

 At present situation our organizational structure should be flexible. We should increase

our communication level with employees and be honest with them. Try to cooperate with
them.
 Top line manager should involve low line managers in discussion and allow them to
share their decision and ideas with them. In case of emergency, low line manager should
also make a decision about organization.

Policies or techniques to increase efficiency:

 As a manager I make policies in which all aspects are include. In policies I should take
care my employees concern provide them job security and make things easy form them.
 Heath is the first priority at this time so it is my responsibility to take care of their health
make rules about social distancing provide better facilities.
 Make flexible policies to increase efficiency if employees are satisfied then they will do
work better and increase productivity. If we take care of employees by our policies it will
help us to achieve our vision.

Changing in Marketing & HR policies

 We should just help to our workers who cannot work in lockdown and give them to as
their salaries it would help our employees and also increase our sales.
 This plan would also help in HR by online training and interviews ,the persons who work
from home can work by virtual meetings and who ,who just are labor and can work in
factories for producing products can work with SOPs otherwise they would get their
salaries from that specific help account.
Ethical strategies:

 A manager can safe their employees and organization by providing new policies by
government with strict action. The policy should include social distance, wearing masks,
wearing gloves, take a lot of water, cleanses, washing hands again and again , daily
checkup of employees before entering in the organization, avoid travelling and take care
of themselves and others.
 And fully cooperate with their organization. If anybody has even a small sign of virus
consult immediately with doctor. And organization would provide all best facilities to do
this all processes.

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