SUBMITTED BY:SUBMITTED BY: Ali Sherazi (3269)Ali Sherazi (3269)

Usman Shamshair Usman Shamshair (3242)(3242)

Umair Hameed Umair Hameed (3246)(3246)

Ahsan Mailk Ahsan Mailk (3243)(3243)

SUBMITTED TOSUBMITTED TO: : Sir Ghulam Ahmad RanaSir Ghulam Ahmad Rana

MBA < E8 > 2MBA < E8 > 2ndnd Semester Semester

HAJVERY UNIVERSITY LAHOREHAJVERY UNIVERSITY LAHORE

Final Project:Final Project: Principle Of Management Principle Of Management

Engro Foods PakistanEngro Foods Pakistan

ResourcesResources

Interview Of relating PersonInterview Of relating Person

Mr. Ali ShamshairMr. Ali Shamshair ((Manager in Engro Foods SahiwalManager in Engro Foods Sahiwal))

Also help of InternetAlso help of Internet

Mr. Ali Shamshair (Mr. Ali Shamshair (Manager Manager SAHIWALSAHIWAL))

11. Company History & Profile. Company History & Profile

2. Vision, Mission, Objective & Goals2. Vision, Mission, Objective & Goals

3. Company Ownership & Organ 3. Company Ownership & Organ

gram Chartgram Chart

4. Company KSF (Key Success Fact)4. Company KSF (Key Success Fact)

5. Company Core Competency5. Company Core Competency

6. Competitive Advantages6. Competitive Advantages

7. Company Environment7. Company Environment

a. Internal culture b.External Culture a. Internal culture b.External Culture

8. 8. PESTLE AnalysisPESTLE Analysisi.i. Planning AnalysisPlanning Analysis

ii.ii. Organizing StaffingOrganizing Staffing

iii.iii. Team ManagementTeam Management

iv.iv. Motivation TechniquesMotivation Techniques

v.v. Leadership In ActionLeadership In Action

Control & Assurance Control & Assurance

Solution To ProblemSolution To Problem

Engro Foods Limited was officially launched as a Engro Foods Limited was officially launched as a fully owned subsidiary of Engro in 2004. Using dairy fully owned subsidiary of Engro in 2004. Using dairy as a stepping stone to enter into the food business, as a stepping stone to enter into the food business, the Company has established state-of-the-art the Company has established state-of-the-art processing units in Sukkur and Sahiwal, along with processing units in Sukkur and Sahiwal, along with an ice cream production facility in Sahiwal.an ice cream production facility in Sahiwal.

Top quality brands like Olper’s, Tarang, Omore and Top quality brands like Olper’s, Tarang, Omore and Owsum have been successfully launched under the Owsum have been successfully launched under the helm of Company’s dairy products. To support helm of Company’s dairy products. To support these brands and their highest standards of quality, these brands and their highest standards of quality, Engro Foods has invested heavily in milk processing Engro Foods has invested heavily in milk processing and milk collection infrastructure.and milk collection infrastructure.

ProfileProfileType:Type: Public Company Public Company Company Size: Company Size: 1001-5000 1001-5000

employeesemployeesWebsite:Website:

http://www.engrofoods.comhttp://www.engrofoods.comIndustry:Industry: Food & Beverages Food & BeveragesFounded: Founded: 20042004Headquarters:Headquarters: 5TH FLOOR, THE HARBOR FRONT 5TH FLOOR, THE HARBOR FRONT

BUILDING, HC # 3,BLOCK 4, SCHEME 5, BUILDING, HC # 3,BLOCK 4, SCHEME 5, CLIFTON,KARACHI, SIND PAKISTANCLIFTON,KARACHI, SIND PAKISTAN

CORE VALUESEngro’s employees performance can only flourish in a sound work environment. That is why Engro Foods Limited is committed to supporting its leadership culture through systems and policies that foster open communication, maintain employee and partner privacy, and assure employee health and safety.

1.Safety, Health & EnvironmentEngro manage and utilize resources and operations in such a way that the safety and health of their people, their neighbors, their customers and their visitors is ensured. They believe their safety, health and environmental responsibilities extend beyond protection and enhancement of their own facilities, and they are concerned about the distribution, use and after use disposal of their products.

2.Ethics And IntegrityThey care how results are achieved and express honest and ethical behavior in all their activities. Choosing the course of highest integrity is their intent and they establish and maintain the highest professional and personal standards. A well-founded reputation for scrupulous dealing is itself a priceless asset.

3.LeadershipEngro have leaders of high integrity, energy and enthusiasm who have the necessary managerial, professional and people skills to inspire a group or an organization to set high goals and achieve them willingly. They believe that leadership skills need to be strengthened at all levels within their organization and that managerial and professional competence is necessary foundation.

4.Quality & Continuous ImprovementEngro believe that quality and a relentless commitment to continuous improvement are essential to their ongoing success. To this end, they define quality as understanding the customer's expectations, agreeing on performance and value, and providing products and services that meet expectations 100 percent of the time. Their motto is, "Quality in all wedo”.

5.External & Community InvolvementEngro believe that society must have industrial organizations that it can trust. Trust and confidence are earned by their performance, by open and direct communication, and by active involvement in the communities in which they live and conduct their business.

6.Candid & Open CommunicationsEngro value communications that are courteous, candid and open and that enable each of them to do their jobs more effectively by providing information that contributes to the quality of their judgments and decision making. Effective communications should also provide the means for gaining understanding of the company's overall objectives and plansand of the thinking behind them.

7.Enjoyment & FunEngro believe that excitement, satisfaction and recognition are essential elements of healthy, creative and high-performing work environment. Having fun in their work should be a normal experience for everyone.

8.InnovationSuccess requires them to continually strive to produce break through ideas that result unimproved solutions and services to customers. They encourage challenges to the status quoand seek organizational environments in which ideas are generated, nurtured and developed.

9.Individual Growth & DevelopmentThey strongly believe in the dignity and value of people. They 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.

11.Teamwork & PartnershipThey believe that high-performing teams containing appropriate diversity can achieve what individuals alone cannot. Consciously using the diversity of style, approach and skills afforded by teams is strength they must continue building into their organization.

Aims at transforming the company with in the next five years into first national food industry giant, then into a regional force then into a Global player. Mission STATMENT Build branded food business to improve quality of life by offering tasty, affordable and highly nutritional products to our customers while maximizing stake holders value.

VISION STATMENT

OBJECTIVE AND GOALSOBJECTIVE AND GOALS

Engro foods main objective are to Engro foods main objective are to supply their own favorite olper’s milk supply their own favorite olper’s milk and to satisfy the consumer’s needs and to satisfy the consumer’s needs and wants. Engro foods second and wants. Engro foods second objective to provide maximum profit objective to provide maximum profit to their share holders and increase to their share holders and increase the market share.the market share.

EFL dream to be Big. We want to be EFL dream to be Big. We want to be major player in food industry which is major player in food industry which is also evident in our vision.also evident in our vision.

Company OwnershipCompany OwnershipBoard Of DirectorsBoard Of Directors Engro’s Board of Directors includes eight non-executive directors Engro’s Board of Directors includes eight non-executive directors

and five executive directors, who share the collective responsibility and five executive directors, who share the collective responsibility of ensuring that the affairs of the organization are managed of ensuring that the affairs of the organization are managed competently and with integrity. The Board has been reconstituted as competently and with integrity. The Board has been reconstituted as of April 2009, supplementing the number of non-executive directors. of April 2009, supplementing the number of non-executive directors.

Hussain DawoodHussain Dawood Chairman Chairman Muhammad Aliuddin Ansari Muhammad Aliuddin Ansari

President & CEOPresident & CEO

Shahzad DawoodShahzad Dawood

Director Khuwaja Iqbal Director Khuwaja Iqbal AhsanAhsan

DirectorDirector

Board Of DirectorsBoard Of Directors

Shahid Hamid PrachaDirector

Shabbir HashmiDirector

Ruhail MohammedDirector

Khalid Siraj SubhaniDirector

Abdul Samad DawoodDirector

Saad RajaDirector

Organo Chart Of Engro Organo Chart Of Engro FoodsFoods

Engro Food products

Key Success FactKey Success Fact EFL is only the recognizable food company EFL is only the recognizable food company

which is doing business without interest, which which is doing business without interest, which means that they do not take loan or take means that they do not take loan or take advantage of the interest income which they advantage of the interest income which they can easily do? If they want loan and they cannot can easily do? If they want loan and they cannot find anyway out they go for Islamic Financing find anyway out they go for Islamic Financing like mudarba and musharka. It is their strength like mudarba and musharka. It is their strength as majority of the people in Pakistan are as majority of the people in Pakistan are Muslims and Muslims are advised to remain Muslims and Muslims are advised to remain away from interest income. EFL has one of the away from interest income. EFL has one of the most modern plants which has the latest most modern plants which has the latest technology and has a high production capacity. technology and has a high production capacity. They produce 80,000 liters of milk in a day.They produce 80,000 liters of milk in a day.

Company Core Company Core Competency Competency

EFL foods Pvt. Ltd has been able to build a EFL foods Pvt. Ltd has been able to build a good brand name in a number of years. good brand name in a number of years. There are several consumers who are loyal There are several consumers who are loyal to the brand and do not shift to other to the brand and do not shift to other brands. Building a good brand name is not brands. Building a good brand name is not easy. It takes years to build a brand image easy. It takes years to build a brand image by providing the best quality to its by providing the best quality to its consumers which Haleeb Foods have done. consumers which Haleeb Foods have done. They have consistently delivered which They have consistently delivered which provides a competitive advantage to the provides a competitive advantage to the company of having a good name in the company of having a good name in the market.market.

CompetitorsCompetitors

Competitive AdvantageCompetitive Advantage

SWOT ANALYSISSWOT ANALYSIS

StrengthsStrengths1.Engro’s Back1.Engro’s Back     Olper’s is a brand of ENGRO foods. This means that consumers can Olper’s is a brand of ENGRO foods. This means that consumers can

relate their former image of ENGRO foods to Olper’s. ENGRO is a relate their former image of ENGRO foods to Olper’s. ENGRO is a well established brand name in Fertilizer, IT and infrastructure well established brand name in Fertilizer, IT and infrastructure business. The brand is well known so customers will automatically.business. The brand is well known so customers will automatically.

2. PR with farmers2. PR with farmers ENGRO has been interacting with the farmers for fertilizers and has ENGRO has been interacting with the farmers for fertilizers and has

gained quite a good reputation over the years. It has led to a strong gained quite a good reputation over the years. It has led to a strong bond and long term relationship with the farmers who are willing to bond and long term relationship with the farmers who are willing to supply milk to the company. This is an added advantage and supply milk to the company. This is an added advantage and strength for the company because it will never be short of milk strength for the company because it will never be short of milk production. The farmers also won’t have to look elsewhere to production. The farmers also won’t have to look elsewhere to sell their milk.sell their milk.

WeaknessesWeaknesses

1. Olwell TVC1. Olwell TVC Olwell ad which is based on Western life style, ENGRO foods Olwell ad which is based on Western life style, ENGRO foods

brand management showed a man who put off his clothes & remain brand management showed a man who put off his clothes & remain just in his undergarments, or half nude lady in a cat walk or just in his undergarments, or half nude lady in a cat walk or men admiring the figures of a lady in mix gender health club.men admiring the figures of a lady in mix gender health club.

2. Owning Red Color2. Owning Red Color The company has not owned the color red like Nestle has a green The company has not owned the color red like Nestle has a green

Milk pack; Haleeb has a blue carton etc. This may create problems Milk pack; Haleeb has a blue carton etc. This may create problems because when a consumer enters a grocery shop, then he/she might because when a consumer enters a grocery shop, then he/she might have problems in recalling the brand because there is no color have problems in recalling the brand because there is no color association attached to Olper’s. The company may need to find association attached to Olper’s. The company may need to find a suitable color in which to focus its upcoming marketing strategies.a suitable color in which to focus its upcoming marketing strategies.

3. Low Quality Milk3. Low Quality Milk  

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

4. Packaging4. Packaging EFL is dependent upon Tetra Pak for the packaging of EFL is dependent upon Tetra Pak for the packaging of

its entire dairy products. Tetra Pak is the only option available its entire dairy products. Tetra Pak is the only option available to Olper’s for packaging because it is having monopoly in the to Olper’s for packaging because it is having monopoly in the packaging sector in Pakistan. Due to this reason, Tetra Pak can packaging sector in Pakistan. Due to this reason, Tetra Pak can charge them higher and it could increase the production costs.charge them higher and it could increase the production costs.

5. Milk collection & distribution costs5. Milk collection & distribution costs EFL’s 34 out of 40 milk-collection centers are located EFL’s 34 out of 40 milk-collection centers are located

in Punjab, whereas its only milk processing facility is situated near in Punjab, whereas its only milk processing facility is situated near Sukkhur (Sindh). It increases the milk collection.Sukkhur (Sindh). It increases the milk collection.

6. Narrow brand portfolio6. Narrow brand portfolio It has been more than a year now, when EFL launched its It has been more than a year now, when EFL launched its

first dairy product, Olper’s Milk on March20, 2006. But EFL’s brand first dairy product, Olper’s Milk on March20, 2006. But EFL’s brand portfolio still consists of just 3 products i.e. .Olper’s Milk, Olwell portfolio still consists of just 3 products i.e. .Olper’s Milk, Olwell Milk and Olper’s Cream. Whereas its competitors like Nestle and Milk and Olper’s Cream. Whereas its competitors like Nestle and Haleeb Foods have a much diversified line of dairy products.Haleeb Foods have a much diversified line of dairy products.

CONT…

OpportunitiesOpportunities

1. 1. Increased funding by GovernmentIncreased funding by Government   Government has decided to increase farmers’ funding. This is Government has decided to increase farmers’ funding. This is

an opportunity for ENGRO foods because previously due to weather an opportunity for ENGRO foods because previously due to weather conditions and other reasons there was lots of wastage of milk but conditions and other reasons there was lots of wastage of milk but now that can be reduced as farmers will be better able to store now that can be reduced as farmers will be better able to store milkfor longer time periods.milkfor longer time periods.

2. Increased consumption of PLM2. Increased consumption of PLM Competition may create opportunities for the company Competition may create opportunities for the company

because each competitor in the milk industry wants to increase because each competitor in the milk industry wants to increase penetration of processed liquid milk and so they will create penetration of processed liquid milk and so they will create awareness for consumers through different advertising media.awareness for consumers through different advertising media.

3. Awareness3. Awareness Growing dissatisfaction with loose milk and increasing Growing dissatisfaction with loose milk and increasing

awareness about health and hygiene issues have led to increased awareness about health and hygiene issues have led to increased processed milk consumption.processed milk consumption.

ThreatsThreats1. 1. CompetitionCompetition Competition may pose a threat because the company will Competition may pose a threat because the company will

have to maintain its leadership in an expanding market so that it have to maintain its leadership in an expanding market so that it doesn’t lose its market share to its competitors. For Olper’s it might doesn’t lose its market share to its competitors. For Olper’s it might be difficult to penetrate in a market where the loyalties exist for be difficult to penetrate in a market where the loyalties exist for such brands as Nestle and Haleeb. These brands have been in such brands as Nestle and Haleeb. These brands have been in the milk industry far too long and have left a mark in the minds the milk industry far too long and have left a mark in the minds of consumers in terms of quality.of consumers in terms of quality.

2. Perceptions and Price Differentials2. Perceptions and Price Differentials Consumers’ perceptions and price differentials can cause a Consumers’ perceptions and price differentials can cause a

threat for the company. It is important that Olper’s comes up to the threat for the company. It is important that Olper’s comes up to the expectations of the customers and fulfills its conformance quality expectations of the customers and fulfills its conformance quality that is the company meets its promised specifications. Consumer’s that is the company meets its promised specifications. Consumer’s preferences change with time and prices might create certain preferences change with time and prices might create certain barriers in terms of the profit margins for Olper’s. For example, lose barriers in terms of the profit margins for Olper’s. For example, lose milk is still cheapen r than packaged milk and that is also one factor milk is still cheapen r than packaged milk and that is also one factor that people still prefer to buy lose milk.that people still prefer to buy lose milk.

Company EnvironmentCompany EnvironmentWorking Environment:Working Environment: At Engro, we strive to uphold the At Engro, we strive to uphold the

tradition of excellence and become the employer of tradition of excellence and become the employer of choice. Ours is a workplace where our employees feel choice. Ours is a workplace where our employees feel confident, valued, and most importantly, inspired.confident, valued, and most importantly, inspired.

Work Life Balance:Work Life Balance: We understand the importance of family We understand the importance of family

and appreciate that our employees need to balance and appreciate that our employees need to balance their professional and personal responsibilities. It is our their professional and personal responsibilities. It is our intent to make it easier for our employees to manage intent to make it easier for our employees to manage their work/life balance more effectively. We also their work/life balance more effectively. We also encourage our employees to take part in numerous encourage our employees to take part in numerous programs aimed at strengthening their overall programs aimed at strengthening their overall wellbeing.wellbeing.

Employees Friendly Policy:Employees Friendly Policy: Our constant pursuit Our constant pursuit

towards the welfare of our employees has towards the welfare of our employees has led to the formulation of many unique led to the formulation of many unique policies, to create a more positive work policies, to create a more positive work environment, promote greater gender environment, promote greater gender diversity, provide opportunities for training diversity, provide opportunities for training and development and build career and development and build career opportunities. Such policies include ethics opportunities. Such policies include ethics policy, gift policy, non-discrimination and policy, gift policy, non-discrimination and anti-harassment policy, maternity leave anti-harassment policy, maternity leave policy, part time work policy and off track policy, part time work policy and off track policy.policy.

PESTLE AnalysisPESTLE Analysis No Organization exists in a vacuum the environment No Organization exists in a vacuum the environment

with in which the firm has to operate will affect the with in which the firm has to operate will affect the way that strategy is both planned and carried out way that strategy is both planned and carried out and changes in the environment is also most likely and changes in the environment is also most likely reason for making changes in the strategy.reason for making changes in the strategy.

Engro Foods like all the organization they also have Engro Foods like all the organization they also have to face such kind of environment which is very to face such kind of environment which is very dynamic.dynamic.

Being in the market as a challenger they have to Being in the market as a challenger they have to face all the external factors and have to cope up with face all the external factors and have to cope up with their accordingly.their accordingly.

Political Factors:Political Factors: Engro Food also abides by the Engro Food also abides by the

rules farmed by the Government and set their rules farmed by the Government and set their strategies that are according to the laws and strategies that are according to the laws and legislations of the Government they are working legislations of the Government they are working under. Tetra pack that was for the first time that under. Tetra pack that was for the first time that milk came in that form soon followed by the milk came in that form soon followed by the Nestles milk pack .Nestles milk pack .

Economical Factors :Economical Factors : Engro Food is strongly affected by Engro Food is strongly affected by

both the Economical and Demographic both the Economical and Demographic environment around and have to keep on taking environment around and have to keep on taking different step to respond accordingly .There is no different step to respond accordingly .There is no sale tax on the milk.sale tax on the milk.

Haleeb also don't charge interest on its products Haleeb also don't charge interest on its products which also makes a huge difference economically.which also makes a huge difference economically.

Social Factors:Social Factors: Engro Food has helped to bring Engro Food has helped to bring

about a change in life style of Pakistani people about a change in life style of Pakistani people

by introducing UHT milk, as the literacy rate is by introducing UHT milk, as the literacy rate is improving and it is resulting in a better awareness of improving and it is resulting in a better awareness of the olpers and tarang UHT treated milk and is helping the olpers and tarang UHT treated milk and is helping them improve their sales and milk with its basic them improve their sales and milk with its basic benefits.benefits.

Technological Factors:Technological Factors: The types of technology The types of technology

availableavailable

with in the industry states the competitive with in the industry states the competitive environment because creative use of new technology environment because creative use of new technology is what often gives firm their competitive advantages. is what often gives firm their competitive advantages. This environment does not changes that much quickly This environment does not changes that much quickly but the changes that come are strong enough that but the changes that come are strong enough that can change the way the industry is currently running.can change the way the industry is currently running.

Legal Factors:Legal Factors: Engro Food always stand by the Engro Food always stand by the

rules and legal condition imposed by the rules and legal condition imposed by the Government this strategies that are according Government this strategies that are according to the employment laws and legislation of the to the employment laws and legislation of the Government they are working under. Engro Government they are working under. Engro food have the legal law like ,minimum wage , food have the legal law like ,minimum wage , working time, Food stuffs.working time, Food stuffs.

Ethical Factors:Ethical Factors: Engro foods are well renewed Engro foods are well renewed

company operating in the milk industry since company operating in the milk industry since 2002. And the reason for this is importantly 2002. And the reason for this is importantly their ethical values. They don't sales on credit their ethical values. They don't sales on credit it unethical and not according to the law of it unethical and not according to the law of our religion.our religion.

E.R.P System in Engro Foods Limited: As you know that EFL is a 100% Subsidiary of Engro Pakistan Limited.ECPL has made substantial investment in Information Technology. ECPL has its own dedicated Network of Intranet with a backbone of Internet & PTCL Fiber lines. Through this sophisticated & widespread intranet, All Business functions of E.F.L are integrated with each other like;

Production Logistic Accounts & finance MarketingSales This Widespread intranet is also offering a platform for developing and deploying critical business applications to support business operations and management decision-making across the Internet worked enterprise. Many customers application has been developed at ECPL, which helps in Order Processing Inventory Control Sale management & reportingAnd executive information system

NETWORKS RESOURCES IN ECPL

1. Local Area Network:LAN is being used at all Regional office of E.F.L with Star Topology. Star topology is the most common topology in a star network, a hub is placed in the center of the network, and all nodes are connected to the hub and communicate through it. Data packets travel through the hub and are sent to the attached nodes, eventually reaching their destinations. All of the stations in a star topology are connected to a central unit called a hub.

In LAN all PC’s are attach with TCP IP

2. WAN (wide area network 

HUB

FIBER OPTICS There are Fiber Optic connections between head office and Regional offices of E.F.L

Firewalls Whole intranet is connected to a firewall for data security.

Routers LAN’s are connected with each other and with WAN’s using devices calledrouters. These provide fairly advanced routing functions at the network layer.

E.F.L SALES & DISTRIBUTION SYSTEM:

This application helps in the accomplishment of daily sales operations &management. The application has five different modules i.e.

1.Setup 2.Transaction 3.Query 4.Report 5.Administration

Distribution claim The distribution has to process all the claims before 6thof every month on given formats. These claims are verified by the TSO’s and are sent to the regional office for verification after the verification at the regional office the claims are logged on to thesystem and are sent to the head office after verification from the head office the acknowledgement is sent to the distributor

POLCA AnalysisPOLCA Analysis

Planning Analysis: Planning Analysis: In planning Engro In planning Engro

managers engage in planning the define managers engage in planning the define goals, establish strategies for achieving goals, establish strategies for achieving those goals and develop. Plan to integrate those goals and develop. Plan to integrate and coordinate activities in engro Pakistan and coordinate activities in engro Pakistan all the managers are involve in planning all the managers are involve in planning function .function . The chairman with the help of all The chairman with the help of all the directors set some long term as well as the directors set some long term as well as short term goals, and then the directors and short term goals, and then the directors and managers, make the strategies, to managers, make the strategies, to accomplish goalsaccomplish goals..

Types Of PlansTypes Of Plans

Company Performance Industry sales were 5.5 million tons during 2008, growing 12% from 2007 whereas national food production during 2008 was 4.98 million tons which is 5%higher than 2007. In 2008, Engro produced 995KT, a bit less than target of one million tons. Engro has Food share of 19.2%.To minimize the inactive shortage, Engro extensively coordinated with government at federal, provincial and district levels.

Company sales ANGRO DEMAND

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

Engro Foods expansion on a bigger scale

Long term & Directional Long term & Directional PlanningPlanning

Future plansFuture plans   ENGRO Foods CEO ENGRO Foods CEO Muhammad Aliuddin Muhammad Aliuddin

AnsariAnsari stated, "Our vision is to become a fast stated, "Our vision is to become a fast expanding mega foods company. To achieve expanding mega foods company. To achieve our vision, the company will initially focus on our vision, the company will initially focus on dairy by investing a substantial amount in dairy by investing a substantial amount in plant, milk collection capability and plant, milk collection capability and marketing. We firmly believe that there is marketing. We firmly believe that there is a big dairy opportunity available and with our a big dairy opportunity available and with our strong entry in UHT milk category, with strong entry in UHT milk category, with Olper’s milk, we have placed ourselves ahead Olper’s milk, we have placed ourselves ahead of others in terms of quality and consumer-of others in terms of quality and consumer-understanding. It is our belief that we can understanding. It is our belief that we can get the maximum out of this opportunity by get the maximum out of this opportunity by focusing on innovation and quality.focusing on innovation and quality.

ENGRO Foods is making concrete efforts to ENGRO Foods is making concrete efforts to expand in and beyond Pakistan; through expand in and beyond Pakistan; through strategic international alliances, our vision is strategic international alliances, our vision is to eventually become global.to eventually become global.

He said that dairies have entered the market He said that dairies have entered the market in the past but failed due to lack of technical in the past but failed due to lack of technical expertise and financial soundness. expertise and financial soundness. Elaborating further, he mentioned that Elaborating further, he mentioned that ENGRO's 40-year-old relationship with the ENGRO's 40-year-old relationship with the farmer also gives ENGRO Foods another edge farmer also gives ENGRO Foods another edge over the competitors.over the competitors.

The future plans also include as ENGRO The future plans also include as ENGRO Foods coming up with new products / brands Foods coming up with new products / brands to expand its portfolio in the dairy industry. to expand its portfolio in the dairy industry. The company will be launching new brands in The company will be launching new brands in various dairy categories after completing various dairy categories after completing solid consumer and product research. solid consumer and product research. 

Setting Goals and Setting Goals and Developing PlansDeveloping Plans

Use Of M.B.OUse Of M.B.O Management By Objectives (MBO)Management By Objectives (MBO)

Specific performance goals are jointly determined Specific performance goals are jointly determined by employees and managers.by employees and managers.

Progress toward accomplishing goals is periodically Progress toward accomplishing goals is periodically reviewed.reviewed.

Rewards are allocated on the basis of progress Rewards are allocated on the basis of progress towards the goals.towards the goals.

Key elements of MBO:Key elements of MBO:Goal specificity, participative decision making, an Goal specificity, participative decision making, an

explicit performance/evaluation period, feedbackexplicit performance/evaluation period, feedback

Hierarchy Chain In Engro Hierarchy Chain In Engro FoodsFoods

 1.Administration2.Finance and Accounts3.Human Resource4.Marketing 5.Milk Procurement6.MIS7.Production8.Quality Assurance9.Supply and Distribution10.Human Resource Management

ORGANIZINGORGANIZING

1.Administration: Efficient management of all administrative affairs of Engro Foods (Pvt.) Limited is the job of the Administration department. From legal matters to general day-to-day operations of the office, the Administration department ensures that all affairs run smoothly.

2.Finance and Accounting: The Finance and Accounting departments at Engro Foods are responsible for the total financial management of the different businesses of the company. From the usual accounting statements and sheets to risk and portfolio management, the team ensures that every rupee coming into and out of the Companies' pockets is properly documented and audited.

3.Human Resource: The Human Resource department at Engro Foods (Pvt.) Limited spearheads the recruitment process to ensure that the finest human resource is taken on board tango Foods. The department, besides carrying out succession planning, maintains and implements 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 top business schools of Pakistan, the Marketing Department ensures that from product need identification to product development, launch and post-launch, all strategic decisions are made based on authentic information and research. Identifying the target markets, effectively communicating to them and building the image of the brands as well as the Companies, is the job of the professionals running the marketing at Engro Food.

5.Milk Procurement: As all of our food products are milk based, the entire Milk Procurement department plays a 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 tothe factory and ascertaining the freshness of milk all across the milk procurement process, is the responsibility of Milk Procurement department, consisting of food technologists working at 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 at all times. Regularly modifying and updating the Company's accounting software isalso the 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 milk per day, making it one of the largest in the country. Professionally qualified human resource efficiently works night and day to maintain highest hygiene standards.

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

9.Supply Chain and Distribution:This department ensures timely and effective distribution of the products to different shops and stores spread all across Pakistan. From transportation management toobtaining route permits and approvals, is done by this department

10.Marketing Research :

Marketing research is an important step when a new product is to be launched into the market. There are many risks associated with that new product and especially when accompany decides to diversify into a completely new market that it was not previously catering to. They used the method of shadowing that is they observed people while using the product. They also conducted unfocused groups where they interviewed a diverse set of people to explore ideas about the brand and what more they want in the food sector to be available to people.

Organizational DesignA process involving decisions about six key elements:

Work specialization

Departmentalization

Chain of command

Span of control

Centralization and decentralization

Formalization

Functional Grouping jobs by functions performed.

ProductGrouping jobs by product line.

GeographicalGrouping jobs on the basis of territory or geography.

Process Grouping jobs on the basis of product or customer flow.

CustomerGrouping jobs by type of customer and needs.

• Cross-functional teams

• Cross-hierarchical teams

• Free flow of information

• Wide spans of control

• Decentralization

• Low formalization

CULTURE OF ORGANIZATION 1.Engro is Japanese culture organization. 2.Low power distance and open culture. 3.Engro Foods is working on open door policy. 4.In Engro Foods suggestions are always welcomed from the employees. 5.Engro has always got the award of highest paying company since many years.

A stronger employee commitment to A stronger employee commitment to the organization.the organization.

Aids in the recruitment and Aids in the recruitment and socialization of new employees.socialization of new employees.

Fosters higher organizational Fosters higher organizational performance by instilling and performance by instilling and promoting employee initiative.promoting employee initiative.

ENGRO FOOD STRONG CULTURE BENIFITS

Our PeoplePeople at ENGRO FOOD LIMITED are very dynamic and vibrant with an attitude of challenging the norms, at the same time these people are highly professional, ethical and result oriented.

1. These are people who want to shine, make a name for themselves and for that they are willing to go thee xtramile.2. People at ENGRO FOODS are driven to achieve greater success they look for new and exciting ways to return value to their customers and shareholders.3. There are more than 700 experienced employees and in ENGRO input of every employee is encouraged.4. ENGRO is striving to become employer of choice by providing work place where people feel confident, valued and provided with training

Our DreamsENGRO FOODS LIMITED dreams to be BIG. They want to be a major player in the food industry which is also evident in their vision.

ENGRO FOODS LIMITED wants to challenge the industry norms and surprise whoever has eyes on it

  FINANCIAL ANALYSIS Engro Foods Limited

Balance Sheet20062007200820092010 Non-Current Assets156527634901648410084Current Assets 4231566242525203847Total Assets198743297326900414031Equity11581336273233705544 Non-current liabilities3691859335836375730Current Liabilities4601134123619972757Total Equity & Liabilities198743297326900414031

Balance Sheet 2006 2007 2008 2009 2010 

Non-Current Assets 1565 2763 4901 6484 1008

Current Assets 423 1566 2425 2520 3847

Total Assets 1987 4329 7326 9004 14031

Equity 1158 1336 2732 3370 5544 

Non-current liabilities 369 1859 3358 3637 5730

Current Liabilities 460 1134 1236 1997 2757 Total Equity & Liabilities 1987 4329 7326 9004 1403

MOTIVATION:MOTIVATION: MMOTIVATION FACTORS THAT REVOLVES OTIVATION FACTORS THAT REVOLVES

AROUND ENGRO REVOLVES and THEORY AROUND ENGRO REVOLVES and THEORY FlexibilityFlexibility EnvironmentEnvironment Top--level managers level managersTop--level managers level managers TWO FACTORS THERY AND ENGRO WORKINTWO FACTORS THERY AND ENGRO WORKIN

G G ENVIRONENVIRONMMENTENT WORK LIFE BALANCE:WORK LIFE BALANCE: EEMMPLOYEE FRIENDLY POLICY:PLOYEE FRIENDLY POLICY: ENGRO WOENGRO WOMMEN NETWORKEN NETWORK

MOTIVATION IN ENGRO AT DIFFERENT LEVELS: Mobile phones Compensation car  Field car Car earned out Bonus which are performance driven Share option at higher Level Annual leaves Salaries Medical, spouse and deadly disease like cancer and heart

Herzberg’s Motivation-Herzberg’s Motivation-Hygiene TheoryHygiene Theory

Motivation and GoalsMotivation and Goals

Goal-Setting TheoryGoal-Setting Theory Proposes that setting goals that are accepted, Proposes that setting goals that are accepted,

specific, and challenging yet achievable will specific, and challenging yet achievable will result in higher performance than having no or result in higher performance than having no or easy goals.easy goals.

Benefits of Participation in Goal-SettingBenefits of Participation in Goal-Setting Increases the acceptance of goals.Increases the acceptance of goals. Fosters commitment to difficult, public goals.Fosters commitment to difficult, public goals. Provides for self-feedback (internal locus of Provides for self-feedback (internal locus of

control) that guides behavior and motivates control) that guides behavior and motivates performance (self-efficacy).performance (self-efficacy).

LeadershipLeadership

Leadership In Engro FoodLeadership In Engro Food

Good leadership brings with it great Good leadership brings with it great success!success!

   Foods, we derive our success from the Foods, we derive our success from the combined expertise, knowledge and skills of combined expertise, knowledge and skills of our leadership representing a group of highly our leadership representing a group of highly successful and dynamic professionals, who successful and dynamic professionals, who bring in a wealth of knowledge and bring in a wealth of knowledge and experience and steer the company to great experience and steer the company to great ideas that pave the way for new product ideas that pave the way for new product innovations - and our continued success.innovations - and our continued success.

Contingency Theories of Contingency Theories of LeadershipLeadership

The Fiedler ModelThe Fiedler Model Proposes that effective group performance depends Proposes that effective group performance depends

upon the proper match between the leader’s style of upon the proper match between the leader’s style of interacting with followers and the degree to which the interacting with followers and the degree to which the situation allows the leader to control and influence.situation allows the leader to control and influence.

Assumptions:Assumptions:A certain leadership style should be most effective A certain leadership style should be most effective

in different types of situations.in different types of situations.Leaders do not readily change leadership styles.Leaders do not readily change leadership styles.

Matching the leader to the situation or changing Matching the leader to the situation or changing the situation to make it favorable to the leader is the situation to make it favorable to the leader is required.required.

Transactional LeadershipTransactional Leadership

In Engro food transactional In Engro food transactional leadership are involve in it.leadership are involve in it.

Leaders who guide or motivate their Leaders who guide or motivate their followers in the direction of followers in the direction of established goals by clarifying role established goals by clarifying role and task requirements.and task requirements.

Controlling & AssuranceControlling & Assurance

According to Mintzberg TheoryAccording to Mintzberg Theory Interpersonal RoleInterpersonal Role Informational RoleInformational Role Decisional roleDecisional role Internal AuditInternal Audit Board Audit CommitteeBoard Audit Committee Human resources managementHuman resources management

CONTROLLINGCONTROLLING

The process of monitoring The process of monitoring activities to ensure that they are activities to ensure that they are being accomplished as planned being accomplished as planned and of correcting any significant and of correcting any significant deviations.deviations.

Interpersonal Role:Interpersonal Role:

Engro managers assume to coordinate Engro managers assume to coordinate and interact with employees and and interact with employees and provide direction to the organization. provide direction to the organization.

INFORMATIONAL ROLE:INFORMATIONAL ROLE:

Associated with the Associated with the tasks needed to obtain and transmit tasks needed to obtain and transmit information for management of the information for management of the organization. organization.

Decisional role:

Engro food manager plays the major role in his unit's decision-making system. Four roles describe the decisional aspects of managerial work: �* The entrepreneur roleIn his entrepreneur role, managers search for �improvement his unit to adopt it to changing conditions in the environment.

� � * The disturbance handler role.* The disturbance handler role.

This role involves responding to high-pressure This role involves responding to high-pressure disturbances. For example, manager must resolve disturbances. For example, manager must resolve conflicts among subordinates or between conflicts among subordinates or between manager's department and other departments.manager's department and other departments.

� � * The resource allocator role* The resource allocator role

In their resource� allocator role, managers make In their resource� allocator role, managers make decisions about how to allocate people, budget, decisions about how to allocate people, budget, equipment, time and other resources to attain equipment, time and other resources to attain desired outcomes. desired outcomes.

��* The negotiator role* The negotiator role

The negotiations are duties of the manager's job. The negotiations are duties of the manager's job. These activities involve formal negotiations and These activities involve formal negotiations and bargaining to attain outcomes for the manager's bargaining to attain outcomes for the manager's unit responsibility.unit responsibility.

The management committee/board should organize its work to ensure that it makes the most effective use of the time, skills and knowledge of management committee/board members.

Management Committee

Internal Audit

HUMAN RESOURCES COMMITTEES:HUMAN RESOURCES COMMITTEES:

Our management committee is Our management committee is responsible for devising the overall responsible for devising the overall business strategy and overseeing business strategy and overseeing operations to ensure that our annual operations to ensure that our annual business plans are aligned with the business plans are aligned with the company's long-term growth vision.company's long-term growth vision.

RecommendationsRecommendations 1.Should add new spectrum of products to 1.Should add new spectrum of products to

their portfolio.their portfolio. 2.Should focus on the backward 2.Should focus on the backward

integration by building their own integration by building their own packaging plant.packaging plant.

3.Organizational Structure should 3.Organizational Structure should be converted from SBU to Matrix structure.be converted from SBU to Matrix structure.

4.Should focus on the high chain distribution 4.Should focus on the high chain distribution channel.channel.

5.EFL must enhance the operational activities 5.EFL must enhance the operational activities to cater the new markets.to cater the new markets.

6.Should focus on the low cost leadership and 6.Should focus on the low cost leadership and differentiation strategy to take the marketof differentiation strategy to take the marketof GuwalaGuwala..

Questions Questions History?History?Products?Products? Investment?Investment?Total employees?Total employees?Behaviour?Behaviour?Vision?Vision?Mission?Mission?Objective and goals?Objective and goals?

Company ownership?Company ownership?Board of director?Board of director?Key success fact?Key success fact?Company core competency?Company core competency?Competitors?Competitors?Response of customers?Response of customers?Weaknesses of EFL?Weaknesses of EFL?Opportunities?Opportunities?

Threats?Threats?Company environment?Company environment?Kinds of plans?Kinds of plans?Company performance?Company performance?Future plane?Future plane?Hierarchy chain?Hierarchy chain?Distribution of product?Distribution of product?Culture of Engro food?Culture of Engro food?Engro food Dream?Engro food Dream?

Top level management ?Top level management ?Flexibility ?Flexibility ?Controlling? Controlling? Motivation at different level?Motivation at different level?Purpose of planning ?Purpose of planning ?Kind of planning ?Kind of planning ?Goals and plans of Engro food?Goals and plans of Engro food?Types of goals might have?Types of goals might have?

Factor which affective on Factor which affective on planning ?planning ?

Determine goal individually or with Determine goal individually or with other?other?

Degree of environment?Degree of environment?Who setting goals and developing Who setting goals and developing

plans?plans?What kind of motivation? What kind of motivation? Contemporary theories of Contemporary theories of

motivation?motivation?

Why controlling is important Why controlling is important Source of informationSource of informationComparing standardComparing standardOrganization performanceOrganization performanceWhat about productivityWhat about productivityRanking of EFLRanking of EFLTools measuring organization Tools measuring organization

performanceperformance

What system used in information What system used in information controlcontrol

Who control budget analysisWho control budget analysis

Interview’s PicturesInterview’s Pictures