Business Policy and Strategy Mission &

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Engro Foods limited Pakistan
Eat, drink and be merry

Introduction:

Engro Foods Limited was officially launched as a fully owned subsidiary of Engro in 2004.
Using dairy as a stepping stone to enter into the food business, the Company has established
state-of-the-art processing units in Sukkur and Sahiwal, along with an ice cream production
facility in Sahiwal. Top quality brands like Olpers, Olwell, Tarang, Omore and Owsum have
been successfully launched under the helm of Companys dairy products. To support these
brands and their highest standards of quality, Engro Foods has invested heavily in milk
processing and milk collection infrastructure.
With an acquisition of Al Safa a fast growing and established Halal meat brand Engro Foods
is now venturing into North American market starting from Halal Foods category. The new
organization, Engro Foods Canada Ltd. with a subsidiary Engro Foods USA, LLC, intends to
aggressively grow the business in this market.
With the vision of Elevating Consumer Delight Worldwide, Companys significant focus will be
towards the global operations in the years to come.
Engro Foods Limited is subsidiary of Engro Chemical Pakistan Ltd. which is one of the most
reputed enterprises in Pakistan with more than 40 years of diversified business operations in 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 Olpers cream, it has established
itself as a major player in the foods business. Engro Foods has already set up two processing
plants at Sukkur and Sahiwal. With the ever expanding milk collection network and processing
facilities, the Supply Chain has geared us for the growing sales of our products.
We believe that our recent successes will take us to our goal: To be one of the biggest players in
the food business. Our aim is to dominate the food business, and to achieve this we will settle for
nothing less than the cream!
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Q: 1 Choose a company of your own interest. Critically analyze the companys vision and
mission according to following criteria.
i) Five criteria for judging the organizations investigation of its vision

Criterion Indicative area to be investigated
Foresight What imagination and real vision is shown? Over what
times frame?
Breadth How broad is the vision of the changes likely to take place
in the industry? And of the forces that will lead to the
changes?
Uniqueness Is there an element of uniqueness about the future? Will it
cause our competitors to be surprised?
Consensus is there some consensus within the organization about the
future? If, not, there may be a problem if too many
different visions are pursued at once.
Action ability Have the implications for current activity been considered?
Is there basic agreement on the immediate steps required?
Have the necessary core competencies and future market
competencies and future market opportunities been
identified?
ii) Some criteria for judging mission statements
Mission statement should:
Be specific enough to have an impact upon the behavior of individual throughout the
business;
Reflect the distinctive advantages of the organization and be based upon an objective
recognition of its strengths and weakness;
Be realistic and attainable;
Be flexible enough to take account of shifts in the environment


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Answer:
Engro is progressing day by day because they have a vision and mission that keeps them
motivated and keeps them going. Their vision as they describe as:
To be a premier Pakistani enterprise with a global reach, passionately perusing value
creation for all stakeholders
i) Critically analysis of Engro foods limited vision is given below:-

Criterion Indicative area are investigated
Foresight To be premier Pakistani enterprise
Breadth Global Reach
Uniqueness Value creation for all stakeholders
Consensus Passionate persuasion of progressive and fair environment
Action ability Solid Companys background i.e. Brand Name, Strong
Resources had/has allowed Engro foods to achieve what it
has saw in its vision.
ii) Critically analysis of Engro foods limited mission statement is given below:-
Engro mission statement
Our mission is twofold, to help farmers maximize their farm produce by providing
quality plant nutrients and technical services upon which they can depend. To create
wealth by building new businesses based on company and country strengths in
petrochemicals, information technology, infrastructure, food and other agriculture
sectors. I n pursuing the mission we shall at all time be guided in our conduct and
decision making by our Core Values.
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Criteria to Judge mission statement Engro Mission statement
Be specific enough
To help farmers maximize quality plant nutrients
and technical services
To create wealth by building new businesses
Reflect the distinctive advantages of the
organization
Strengths in food and other agriculture sectors.
Be realistic and attainable; Engro has made its goal real by attaining
successful start in multi business
Be flexible enough They are in different business like
petrochemicals, information technology,
infrastructure, food and agriculture.

Q: 2 Investigate and analyze, either the chosen company is working towards achieving
their vision and mission or not? Explain with evidences.

Answer:

i) Analysis and investigation of Vision of Engro foods limited Pakistan;

Foresight in Vision: - To be premier Pakistani enterprise
Explanation with evidence:-
Engro foods established in 2005, a 100% owned subsidiary First investment of dairy plant
Processed milk market is growing at approx. 20% per annum Olpers achieved peak market shares
of 12.3% within 6 months of launch Other products launched -Olpers Cream, Olwell High
Calcium Low Fat Milk (Premium Brand) Plans to expand product portfolio Milk processing
capacity to increase by 200% to 200 million liters annually Will become the only company in
Pakistan covering the entire milk catchments area Already has the second largest chilled milk
collection system in the country Distribution network to double from 58 towns to 119 towns by the
end of 2007JV with global food major in advanced stage of negotiation (Annual report 2011 ;
Page No. 30 )

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Breadth in Vision: - Global Reach
Explanation with evidence:-
Today Engro foods is fast growing local company with the total investment of Rs. 12.2 billion
into Capex and Rs. 4.6 billions into brands. With an annual consumption over one billion packs,
we are also ranked as the 18
th
largest customer of Tetra pack worldwide. (Annual report 2011;
Page No. 08) With the encouragement by success in local market Engro foods have made the
foray within the international arena with the recent acquisition of Al-Safa, a leading Halal meat
of North America. Engro Foods aim to strengthen presence in North American market by
expanding product portfolio and drawing upon our local expertise in the foods business to
emerge as a major contender and a key player with in the international halal markets. As part of
our long term vision to achieve sustainable business growth, we aim to extend al-safas divers
product line by introducing new brands to gain a larger market share in our quest for continued
penetration within the international markets, we are also planning to expand geographically by
taping new regions and unexplored segments within the main stream foods business (Annual
report 2011; Page No. 09). Engros food global footprint spans 18 states in United States and
04 provinces in Canada. (Annual report 2011; Page No. 11).

Uniqueness in Vision: - Value creation for all stakeholders
Explanation with evidence:-
Besides ensuring the highest ethical standards in operations Engro foods strives to create real
value for its Stake-holders by investing in sustainable initiatives that can impact lives and inspire
changes by achieving social and economic growth. Engro foods business strategies are fully
aligned with our vision to serve all our stake-holders beyond their expectation by taking
complete responsibility for the far-reaching impact of our business decisions- as well as total
ownership for the welfare and growth of the communities that we engage with.


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To achieve our vision of inspiring social change and sustainable economic growth we also build
successful alliance with our stake-holders and forge strategic networks with development
agencies to ensure that people living in marginalized communities are given easy access to
improve basic amentias and opportunities to secure a better livelihood.

To meat and create value for stake holders Engro foods collaborate with Engro
foundation and USAID to establish and launch Khushaal livestock project aimed at
restoring the productivity of farm animals to pre-flood levels in disaster ridding areas of
Larkana and Dadu. In this Project more than 18000 households benefitted from our
investment of Rs. 77.4 million.
Engro foods cooperate with CAREF foundation to provide safer, better and rich
schooling experience to the community of Sahiwal. Where 4 schools educate 800
students in Sahiwal. Sukkur renovation work on a government school on full swing.
Teacher training programs with collaboration to CAREF in which 25 teachers trained
during 2011.
Women empowerment through Livestock development (WELD) Project in collaboration
with USAID this project seeks to empower and enhance the socio-economic
opportunities available to rural women. Under this initiatives , Engro foods is constantly
involved with the developing capacity and enhancing collection infrastructure and
imparting education to female workers on ways to maintain health and nutrition of
livestock. (Annual report 2011; Page No. 32-33).

Consensus in Vision: - Passionate persuasion of progressive and fair environment

Explanation with evidence:-
Engro foods limited is passionate about creating a progressive and fair environment at Engro
Foods and have implemented targeted policies to achieve goal.
Following are the ways through which Engro foods optioned to create progressive and fair
environment:
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Engro foods policies ensures that employee pay structure are aligned with pay scales
being offered at some of largest and most prestigious multinational and local
organizations in the country,
Engro foods strive to create employee synergy and bonding through a number of out-of-
the-box initiatives such as in-house and external trainings, company-wide orientations
and employee get-togethers to boost employee motivation and morale.
Speak out policy among employees about concerns when they see the violation in code
of corporate governance or ethics.
Non-discriminatory policy at organization sets Engro foods as company passionate about
creating a progressive and fair environment at all levels to achieve the goal. (Annual
report 2011; Page No. 36).

Actionability in Vision: - Solid Companys background i.e. Brand Name; Strong Resources
had/has allowed Engro foods to achieve what it has seen in its vision.

Explanation with evidence:-

Engro foods limited Pakistan used stepping stone to enter into food business. The business has
established the state-of-art dairy processing units in Sukkur and Sahiwal, along with ice cream
production facility in Pakistan. Top Quality Brands like; Olpers, Olwell, Tarang, Omore and
Owsum have successfully lunched under the helm of business dairy products. To support these
brands and their higher standards of quality, Engro foods have invested heavily in milk
processing and milk collection infrastructure; the business as also made step out of the dairy
sector with the launch of its brand of juices, olfrute and has completed construction of its rice
processing facility in Muridke.

The business is now set to conquer international markets through a global business unit, which is
prepare to enter the halal meat market in America and Canada, following its acquisition of Al
Safa Halal (Annual report 2010; Page No. 03).

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ii) Analysis and investigation of mission statement of Engro foods limited Pakistan;

Mission Statement Says: Be specific enough to have an impact upon the behavior of
individual throughout the business.
Explanation with evidence:-
Mission Statement of Engro food (corp.) has specified in to two folds One: To help farmers
maximize quality plant nutrients and technical services. To help formers Engro fertilizer is
perineum fertilizer to improve productivity and lifestyle for thousands of farmers across
Pakistan. Engro started with the single product, Urea but today it caters the variety of fertilizers
for different farmers. Like; Engro Zorawar, Engro Zarkhez, Engro Zingro. Engro fertilizer has
developed a loyal customer base all across Pakistan, not only by providing farmer with quality
fertilizers, but also through extensive market development activities. Second: To create wealth
by building new businesses. To be very specific as mentioned in Mission statement Engro has
started following business after fertilizers like. Engro Foods limited, Engro Powergen limited,
Engro Polymer and chemical limited, Engro VoPak Terminal limited, Engro Eximp Private
limited & Avanceon limited. (Annual report 2011; Page No. 03).

Mission Statement Says: Reflect the distinctive advantages of the organization and be
based upon an objective recognition of its strengths and weakness.
Explanation with evidence:-
The Engro Corporation the distinctive advantages of its underutilized resources our competitors.
Like; Profits, People and Networks. This things highlights following at top on organization:
Launched 11 brands Since its inception
Market Leader in Tea Cream Segment
Pakistans first company to cross 1 billion Tetra packs in one year
The Market leader in UHT
Omore Pakistans No. 2 ice cream brand in less than two years
Voted Best place to work for consecutive years (Annual report 2011; Page No. 10).
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Mission Statement Says: Be realistic and attainable.

Explanation with evidence:-
Engros mission came to its reality and remained successful to attain it when Engro
Corporations profits rose 34% to Rs5.4 billion during January to September 2011 as its single
train fertilizer plant, which is the largest in the world, made its first impact on the companys
financial statements. Increased profits from Engro Fertilizer and Engro Foods along with lower
losses from Engro Polymer are the primary reasons for the growth, according to analysts. The
conglomerates consolidated results are in line with market expectations as analysts expected the
figure to stand between Rs5.3 and Rs5.8 billion. The board of directors announced an interim
dividend of Rs2 per ordinary share along with the result. Engros new plant even, built at a cost
of $1.3 billion, started commercial operations at the end of June. Although the plant remained
shut for much of July, it operated at 80% gas flow for the rest of the period under review. The
fertilizer sector of the corporation contributed 62% to the total profits. The market reacted
positively to the result announcement as the stock price raised Rs5.63 to close at Rs118.23
during trade at the Karachi Stock Exchange. Net sales surged 47% to Rs79 billion during the
period under review compared with last years Rs53.6 billion. Fertilizer and food segments
lead the growth: With 48% increase in urea prices and 150% jump in volumetric urea sales,
Engro Fertilizer net profit rose 22% to Rs3.5 billion during the period under review, according to
a JS Global Capital research note. The company managed to report decent profits amid gas
curtailment issues at its new plant, adds the note. Moreover, Engro Foods also reported healthy
profits of Rs408 million compared to a meager bottom-line of Rs35 million in the same period
last year. The food segment jumped due to its UHT milk business which increased its market
share to 44% in nine months of 2011 from 39% in December 2010.

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Mission Statement Says: Be flexible enough to take account of shifts in the environment
Explanation with evidence:-
Engro foods has remained flexible enough from its inception, with respect to external
environment, in rare it might have left any opportunity otherwise it has seen many seeds of
successes due to its aligned strategies with external challenging environment. It is become fit
with its environment in this ways that in last fifteen (15) years it is diversified in six (06)
businesses since its inception in year 1965 so as to survive in this ever changing environment.
Engro Corporation has beaten severely to its environment. Given here its diversified businesses
or areas which Engro Corporation has gone for by seeing opportunity in market:

1. Engro Foods Limited-2004
Engro Foods Limited was officially launched as a fully owned subsidiary of Engro in 2004.
Using dairy as a stepping stone to enter into the food business, the Company has established
state-of-the-art processing units in Sukkur and Sahiwal, along with an ice cream production
facility in Sahiwal.
Top quality brands like Olpers, Olwell, Tarang, Omore and Owsum have been successfully
launched under the helm of Companys dairy products. To support these brands and their highest
standards of quality, Engro Foods has invested heavily in milk processing and milk collection
infrastructure.
With an acquisition of Al Safa a fast growing and established Halal meat brand Engro Foods
is now venturing into North American market starting from Halal Foods category. The new
organization, Engro Foods Canada Ltd. with a subsidiary Engro Foods USA, LLC, intends to
aggressively grow the business in this market.

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With the vision of Elevating Consumer Delight Worldwide, Companys significant focus will be
towards the global operations in the years to come.

2. Engro Polymer & Chemicals Limited-2007
Engro Polymer & Chemicals Limited, an Engro subsidiary, is Pakistans leading manufacturer
and marketer of PVC (polyvinyl chloride) resin, with an annual PVC production of 150,000 tons.
The Company markets its products under the brand name of SABZ. Following recent expansion,
the Company now has an integrated facility with the capability to manufacture EDC, VCM,
Chlorine and Caustic soda.
The Company is the sole producer of PVC resin, hence plays a pivotal role in ensuring the
sustainability of the domestic PVC industry and provides support through the provision of
quality products and technical services. It also invests in developing new products and markets;
as part of market development it is looking to set up a complete business line for the construction
industry by promoting PVC based doors and windows.

3. Engro Powergen Limited-2008
Engro Powergen was incorporated in 2008, as a fully owned subsidiary, to develop power
projects in Pakistan so as to help reduce the power shortage in the country and earn a competitive
return for shareholders.
The Sindh Engro Coal Mining Company Limited is a joint venture between the Government of
Sindh and Engro Powergen, to mine coal from Thar Block II. Although the project is in its early
stages of technical and economic feasibility assessments, the Company aims to utilize the ample
reserves of coal in Thar Desert for power generation.
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Engro Powergen seeks to reduce Pakistans power shortage through exploring and implementing
cleaner, efficient and economic methods of power generation. In this pursuit wind, hydro and
solar power projects are being actively assessed as alternative energy options for Pakistan.
Engro Energy Limited, another Engro Corporation subsidiary, has established a 220 MW power
plant in Qadirpur. This will be Engros first Independent Power Project (IPP) which will utilize
permeate gas, currently being flared from the Qadirpur gas field thus helping reduce carbon
emissions. This power plant will be one of the first green power plants in the country.

4. Engro EXIMP Private Limited-2003
Engro EXIMP Private Limited, established in 2003, is a wholly owned subsidiary of Engro
Corporation Limited. The Company trades in commodity fertilizers such as DAP, MAP, MOP
and SOP, and micro-nutrients like Zinc Sulphate. It supplies these fertilizers as raw materials to
Engro Fertilizers Zarkhez plant for manufacturing blended compound fertilizers. In addition, the
Company also directly markets them locally. Engro EXIMP has been the largest importer of
phosphates and potash fertilizers in Pakistan over the last five years. It has also recently
expanded into regional trade of fertilizers.
With a vision to expand into new and profitable trading avenues, Engro EXIMP has established a
fast growing basmati rice trading business. The Company will procure high quality basmati
paddy from farmers and export finished basmati rice to B2B customers across the world. As part
of this initiative, Engro has setting up a large and state-of-the-art rice processing mill in the heart
of the basmati growing area in Pakistan.

5. Engro Vopak Terminal Limited-1997
A breakthrough in chemical and LPG storage, Engro Vopak Terminal Limited, is a joint venture
of Royal Vopak of the Netherlands and Engro. It has been providing world class services to the
growing chemical and petrochemical industry of Pakistan. The Company offers storage and
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handling solutions for liquid and gaseous chemicals, oil products, petrochemicals, bio-fuels,
vegetable oils and Liquefied Natural Gas (LNG).
Engro Vopak maintains safety and quality as per international standards of OHSAS 18001, ISO
9001, 14001, CDI-T (THA) and ISPS. With successful commissioning of Pakistans first
cryogenic import facility for Ethylene, Engro Vopak has achieved yet another landmark in the
terminal industry of Pakistan.
Engro Vopaks growth is fueled by its passion for excellence and we are currently pursuing
investment opportunities in the energy sector of Pakistan.

6. Avanceon Limited-2003
Avanceon Limited, an Engro subsidiary, is a leading global automation business, providing
process and control solutions, with subsidiaries operating in UAE and the United States. The
Company also offers power and energy management integrated solutions, as well as high end
software that integrate production and business applications. Avanceons driving force is its
vision to develop intellectual property to optimize the energy foot print of the manufacturing
industry.









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References:
http://www.engro.com/
http://www.engro.com/our-businesses/engro-foods-limited/
http://en.wikipedia.org/wiki/Engro_Corporation
http://www.dawoodgroup.com/company_eia.html
http://www.scribd.com/doc/62888143/23/Vision-and-Mission-Statement-of-Engro-Foods
http://www.scribd.com/doc/26712927/Engro-food-STG-Mngt-1
http://tribune.com.pk/story/285808/corporate-results-engro-profits-surge-34/

Annual Report References:
http://engro.com/wp-content/themes/engro-v1.0/pdf/pastanualreports/ar_engro2009.pdf
http://engro.com/wp-content/themes/engro-v1.0/pdf/pastanualreports/ar_engro2010.pdf
http://engro.com/wp-content/uploads/2012/02/engro-foods-annual-report-2011.pdf