INTRODUCTION

With a vision to acquire self - sufficiency in fertilizer production in the country, FFC was
incorporated in 1978 as a private limited company. This was a joint venture between
Fauji Foundation (a leading charitable trust in Pakistan) and Haldor Topsoe A/S
of Denmark. The initial authorized capital of the company was 813.9 Million Rupees.
The present share capital of the company stands at Rs. 3.0 Billion. Additionally, FFC has
Rs. 1.0Billion stakes in the subsidiary Fauji Fertilizer Bin Qasim Limited (formerly
FFC-Jordan Fertilizer Company Limited).FFC commenced commercial production of
urea in 1982 with annual capacity of 570,000metric tons. Through De-Bottle Necking
(DBN) program, the production capacity of the existing plant increased to 695,000 metric
tons per year Production capacity was enhanced by establishing a second plant in 1993
with annual capacity of 635,000 metric tons of urea.
FFC participated as major shareholders in a new DAP/Urea manufacturing complex
with participation of major international/national institutions. The new company FaujiFer
tilizer Bin Qasim Limited (formerly FFC-Jordan Fertilizer Company Limited)
commenced commercial production with effect from January 01, 2000. The facility is
designed to produce 551,000 metric tons of urea and 445,500 metric tons of DAP.
This excellent performance was due to hard work and dedication of all employees and
the progressive approach and support from the top management. In the year 2002, FFC
acquired ex Pak Saudi Fertilizers Limited (PSFL) Urea Plant situated at Mirpur Mathelo,
District Ghotki from National Fertilizer Corporation (NFC) through privatization process
of

the

Government

of

Pakistan.This acquisition at Rs. 8,151 million represents one of the largest industrial secto
r transactions in Pakistan.

VISION
To be a leading national enterprise with global aspirations, effectively pursuing multiple
growth opportunities, maximizing returns to the stakeholders, remaining socially and
ethically responsible.

MISSION
To provide our customers with premium quality products in a safe, reliable, efficient and
environmentally sound manner, deliver exceptional services and customer support,
maximizing returns to the shareholders through core business and diversification,
providing a dynamic and challenging environment for our employees.

CORPORATE STRATEGY
Maintaining our competitive position in the core business, we employ our brand name,
unique organizational culture, professional excellence and financial strength diversifying
in local and multinational environments through acquisitions and new projects thus
achieving synergy towards value creation for our stakeholders.

OUR CORE VALUES

Honesty in communicating within the Company and with our business partners,
suppliers and customers, while at the same time protecting the Companys
confidential information and trade secrets.

Excellence in high-quality products and services to our customers.

Consistency in our word and deed.

Compassion in our relationships with our employees and the communities affected
by our business.

Fairness to our fellow employees, stakeholders, business partners, customers and

suppliers through adherence to all applicable laws, regulations and policies and a high
standard of moral behavior

FUNCTIONS OF MANAGEMENT
PLANNING
In FFC planning through by a proper channel and it take a long time. When they plan
something, they started their planning from the beginning of year and almost taking one
year on research and other precaution and facts relating to their planning they implied
what they planned. In their planning there is a proper channel/ sequence which we
mentioned above.
First of all they analysis the situation and see with the alternative goals and plan and
measure the opportunity cost. After that they select the best way and last step of
their planning is implication with monitoring and controlling. While doing planning and
implication of planning they also see and measure internal and external threats, weakness,
strengths, resources etc. The most interesting thing in FFCs planning that there is vertical
planning but from Bottom to top because their bottom staff directly relating to their
customers (farmers) so they started planning at gross root level.

CONTROLLING
Controlling is a very much important aspect of big business. FFC controlling technique is
Bureaucratic. Because of in rules and regulation they use Bureaucratic controlling mean
the formal control, feed forward control aims to prevent problem before they arise,
feedback control implies the performance measure by the data and analysis the results.

With this they have the also have audit management and budgetary control by the help of
auditors, balance sheet, income statement and financial ratios.
Sometimes employees show reaction against these control then management take the
actions against him/her.

INNOVATION IMPACT
In fertilizer sector innovation is not so much important aspect. Because as old as
fertilizer product as increase in value and demand of product.
Because

Industry Market

innovation

are

slowly as

compare

to

Consumer

Marketing FFC for the purpose of innovating ideas Research and Development (R&D)De
partment is working. They used the latest equipment and welcome to positiveinnovation
by all over the world.

ORGANIZATIONAL CULTURE
The culture of the organization is very much differentiated with their competitor. The
culture of the organization is too much dynamic that is encouraged to the individual to do
hardworking & show the achievement. Following are the practices that make the culture
of the organization dynamic.

CENTRALIZATION/ DECENTRALIZATION
The culture of the organization is centralized and also decentralized that everyone has
followed the orders of the Top management and decentralized in the sense that some
decision are taken into consideration and solved by the specific department head.

QUALITY DEPARTMENT
There is a production department who is responsible for the productions of the fertilizers.
There is a proper management team whose look after the products timely.

METHOD OF FORECASTING IN FFC

The method of forecasting use in FFC

Native Approach
Delphi Method
Expert Opinion

NATIVE APPROACH
Assume demand in next period is the same as demand at most recent period.
In native approach company evaluate its past sale and production performance and then
forecast the future demand and supply and take necessary decisions.

DELPHI METHOD
In Delphi method the panel consist of three experts; Staff, Decision Maker, and
Respondents.
Decision makers take necessary decision about product and respondents tell about the
market conditions.

EXPERT OPINION
In expert opinion a panel of experts sit and take decisions and forecast future plans.

FEEDBACK
Feedback is taken from farmer on quarterly basis.

PRODUCT STRATEGY
In FFC they use Differentiation strategy
Differentiation Strategy
FFC used differentiation strategy to distinguish the offerings of the organization in any
way that the customer perceives as adding value.
Differentiation is concerned with providing uniqueness.

What strategy support as a competitive advantage?

FFC using product development strategy in which they are always focusing on introduced
a new product of fertilizer in a market.
Sometime they also using market penetration strategy through which they can obtain as
much profit they want. Because they are pinner of that product.

INSPECTION PROCESS
In FFC there are special inspection teams which inspect the products in every hour. If
there is any error the production will be stop unless they eliminate the errors.

SUPPLY CHAIN MANAGEMENT

For supply chain management they use a network of dealers which is IT based system
and every distributor is linked together through that network.
They use different mediums for supply chain which are as follows;

Railway
Roads

STANDARD BENCHMARK
Sr. No
1
2
3

Certification Name
ISO-9001:2000
ISO 14001:1996
OHSAS 18001:1999

Brief Description of Certifications

Quality Management System
Environmental Management System
Occupational Health & Safety Assessment Series

EMPLOYEES RELATIONSHIP
The culture has focused on the good relations among the employees. Each and every
person is working in the friendly environment and co-operate with each other.

GLOBALIZATION IMPACT
Now a day world became a global village and every field is directly affected by the
incident done all over the world. Fauji Fertilizer Company Limited also affected by the

political and social conditions of world just like increase in oil prices. With this new
technology, innovation, ways of communication and new management styles affect the
FFC in positive manners.

DECISION MAKING
In FFC decision making done by the team work. Leaders consult with individual or group
subordinates, obtaining their ideas and opinion, and then make the decision.
While doing decision making FFC identifying and diagnosing the problems or facts
or both, generalizing the alternatives, choosing best alternative and after implication
evaluation
theresults.FFC decision making some times very lightly affected by organizational politic
s,emotions and personal preferences but FFC management quickly overcome on it due to
good controlling

SOCIAL RESPONSIBILITY
In social responsibility of FFC there come environment and safety of their workers who
are worked at sight.
Safety has always been a hallmark of out their performance. They have always placed
safety ahead of all other business requirements. They have come a long way to develop a
safety culture where everybody speaks safety language

FFC PHILOSOPHY
They believe that most of the accidents are caused by human error and are preventable.
The management recognizes that safety is of prime importance and high
productiontargets can only be achieved through a good safety performance. FFC endeavo
rsexcellence in the field of personnel and plant safety. Personnel safety is regarded above
all business requirements

SAFETY AWARDS
They got 2 safety Awards

ENVIRONMENT
Like safety, environment at plant site is held. All efforts remain focused on themaintenan
ce, preservation and improvement of environment. If not complete elimination,
mitigation of pollution is the primary goal. Management is completely committed in its
support to sustenance of environment, which encompasses pollution, noise and greenery.
FFC has spent millions in achieving a complete control of the environment. For FFC, end
of the pipe treatment remains the last resort. It believes in mitigating pollution
throughrecycling, elimination or bringing changes to the system. Plant operation is strictl
ycontrolled to maintain a safe environment for plant personnel as well as the surrounding
community.