PROJECT ON

Submitted to: Mr. Shuja Ilyas

Submitted by: Sufyan Zamir Minhas

Waqas Shawnawaz

Khurram Jawad

Sohail Zafar

Abdul Majid

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Contents
Submitted to: Mr. Shuja Ilyas.........................................1
Contents..........................................................................................2
Executive Summary.......................................................................4
Planning:....................................................................................................................................9
PORTERS FIVE FORCES MODEL: ......................................................................................11
Long term Planning:
................................................................................................................................................15
In organizing managers at Engro allocate and arrange human
and non-human resources so that their plan can be carried out
successfully. Like it allocate the machinery and advanced
technology in production unit that must be a relating to
accomplish our goals....................................................................15
. Administration:.......................................................................................................................16
2. Finance and Accounts:.........................................................................................................16
3. Human Resource:.................................................................................................................16
4. Marketing:............................................................................................................................16
5. Milk Procurement:................................................................................................................16
6. MIS:.....................................................................................................................................17
8. Quality Assurance:...............................................................................................................17
9. Supply and Distribution:.......................................................................................................17
Human Resource Management:................................................................................................17
.................................................................................................................................................18
MOTIVATION:.......................................................................................................................20
FAMILY:...................................................................................................................21
WORK LIFE BALANCE:.........................................................................................21
EMPLOYEE FRIENDLY POLICY:.........................................................................21
ENGRO WOMEN NETWORK:...............................................................................21
MOTIVATION IN ENGRO AT DIFFERENT LEVELS:........................................22
Leadership:...............................................................................................................................22
Communication Network:........................................................................................................22
Formal Communication:............................................................................................22
Informal Communication:..........................................................................................23
Communication Network:..........................................................................................23
Candid and Open Communications:..........................................................................23
Individual Growth and Development:.......................................................................23

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 Teamwork and Partnership: ......................................................................................23
Employees Welfare:...................................................................................................23
According to Mintzberg Theory.................................................24
Board Audit Committee:..........................................................................................................25
Internal Audit:..........................................................................................................................25
Management Committee:.........................................................................................................26
Board Compensation Committee:.............................................................................................26
Human Resource Committee:...................................................................................................27
Standards:.................................................................................................................................27
Actions:....................................................................................................................................29
Social Responsibility:...................................................................29
Environment Excellence Award-2009......................................................................................29
References:...................................................................................31

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 Executive Summary

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

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

that affect company’s performance are, political, economic, social and technological

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

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

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

consumers throughout the country.

After the introduction The EFL mission and vision statement, External and internal
audit steeple analysis, situational analysis ie.SWOT analysis of the company has
been done. The company core competencies also discussed.

Engro Businesses:
Our diversified businesses represent our immense growth potential to generate
opportunities for creating and sustaining value for our stakeholders.

Engro Fertilizers Limited:

Engro Foods Limited:
Engro Polymer & Chemicals Limited:
Engro Powergen Limited:
Engro EXIMP Private Limited:
Engro Vopak Terminal Limited:
Avanceon Limited:

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History:
Engro is one of Pakistan’s most progressive, growth oriented organizations, yet we
never forget where we came from. Our history is a part of who we are today. Our diverse
range of companies represent our rich legacy of innovation and growth.

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

From Esso to Engro:

Engro Chemical Pakistan Limited is the second largest producer of Urea fertilizer in
Pakistan. The company was incorporated in 1965 and was formerly Exxon Chemical
Pakistan Limited until 1991, when Exxon decided to divest their fertilizer business on a
global basis and sold off its equity of 75% shares in existent company. The Employees of
Engro, in partnership with leading international and local financial institutions bought out
Exxon’s equity and the company was renamed as Engro Chemical Pakistan Limited.
Engro is a public limited company listed on the Stock Exchanges of Karachi, Lahore and
Islamabad.

Engro Foods Limited:

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Engro Foods 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!

Engro Foods’ vision is “Elevating Consumer Delight Worldwide” and the Company
aims to generate a significant portion of its revenue from foreign operations.

CORE COMPETENCIES & KEY SUCCESS FACTORS:

There are several core competencies of EFL given below;

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

• EFL. Is only the recognizable food company which is doing business without
interest, which means that they do not take loan.

• EFL has one of the most modern plants which has the latest technology and has a
high production capacity.

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

.KEY SUCCESS FACTORS:

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 • Research & Development
• Financial Position
• Market Share
• Product Quality
• Price Competitiveness
• Management
• Global Expansion
• Customer service
• Network Sales And Distribution
• Production Capacity
• Alliances

Location:
Head Office:
Engro Foods Limited
6th Floor, Harbor Front Building
Marine Drive, Block 4, Clifton
Karachi, Pakistan.

At A Glance (as of December 2009):

• Total Employees: 928

• Sales Revenue: Rs. 15,900 Million
• Investments: Rs. 153 Million
• Profit After Tax: Rs. (434) Million

Stock Ticker:

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

Companies:

• Engro Foods Supply Chain (Private) Limited.

Executive Officers:

Sarfarz Ahmed Rehman – Chief Executive Officer.

Our People:

People at EFL 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. These are

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people who want to shine, make a name for themselves and for that they are willing to go
the extra mile.

Values that we live

by

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

1. Leadership
2. Innovation
3. Diversity and International focus
4. Quality
5. Continuous Improvement
6. Candid and open communications
7. Individual growth and development
8. Enthusiastic pursuit of profit
9. Ethics and integrity
10. Safety, Health and Environment

Vision:
“Elevating Consumer Delight Worldwide".

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

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

Objective and goals:

Engrofoods main objectives are to supply everyone their favorite olpers Milk and
to satisfy the consumer needs and wants. Engrofoods second main objectives are
to provide profit to the shareholders and increase the market share.

EFL dreams to be BIG. We want to be a major player in the food industry which
is also evident in our vision, "Elevating Consumer Delight Worldwide". EFL
wants to challenge the industry norms and surprise whoever has eyes on EFL.

STRATEGIC Internal and external Audit:

i. STEEPLE Analysis:
No organization exists in a vacuum; the environment within which the firm has to operate
will affect the way that strategy is both planned and carried out and changes in the
environment is also the most likely reason for making changes in the strategy. Changes in
the environment are also the most likely cause of failure of strategic plans Engro Foods
like all the organizations they also have to face such kind of environment which is very
dynamic. And they have planned to face such dynamic environment.

S - Social Factors:
Engro food has helped to bring about a change in life style of the Pakistani People by
introducing UHT (Ultra High Treatment) Milk, as the literacy rate is improving and it is
resulting in a better awareness of the olpers and Tarang UHT treated milk and is helping
them improve their sales and Milk with its basic benefits has helped improve the image
and more usage has been seen in the past years.

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T - Technological Factor:
. Engro food administrators claim that their plant adopted the latest technology for milk
processing and thus it had an edge over other around twenty plants in competition
including Haleeb, Milkpak as all other plants were based on obsolete European
technology. The idea behind UHT investment was to provide consumers with the best
quality of packaged dairy and food products that no other company can produce.

E - Economical Factor:
Engro Foods is strongly affected by both the Economic and the Demographic
environment around and have to keep on taking different steps to respond accordingly.

E - Environmental Factor:
. Engro Foods like all the organizations they also have to face such kind of environment
which is very dynamic. Engro food has a friendly environmental culture within the
organization to make their employees comfortable and to deal with the external problems.
There are few seasons in which the availability of milk reduces that effect the production
of milk and left Engro food with fluctuated sales.

P - Political Factor:
Engro food also abides by the rules formed by the Government and set their strategies
that are according to the laws and legislations of the Government. Engro food abides to
laws set by the government for trade policies, government policies and completes its
responsibilities in a better manner.

L - Legal Factor:
Engro foods always stand by the rules and legal conditions imposed by the Government
and set their strategies that are according to the employment laws and legislations of the
Government they are working under. Engro foods have the legal laws like, Minimum
wage, working time.

E - Ethical Factor:
Engro foods are well renowned company operating in the milk industry since 2002. And
the reason for this is importantly their ethical values. They don’t sale on credit or on
interest because they consider it unethical and not according to the law of our religion.

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PORTERS FIVE FORCES MODEL:

1. THREAT OF NEW ENTRANTS:

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

• Capital requirements:

Competing in a new industry requires resources to invest. Production of packed products

requires huge investment of financial, human, technical, and marketing resources. At the
moment Engro Olper’s have some threats like from new entrant’s goodmilk product of
shskargang food.

2. BARGAINING POWER OF SUPPLIERS:

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

• Number of suppliers:

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

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 • Importance of volume to supplier:

Suppliers also have less leverage to bargain over price because theEngro foods is
purchasing the large volume of their milk and suppliers don’t have much option to sell
milk to others.

3. BARGAINING POWER OF BUYERS:

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

4. AVAILABILITY OF SUBSTITUTES:

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

5. COMPETITIVE RIVALRY:

The food industry is becoming highly competitive. The difference between one Food
Company and another is usually not that great. As a result, food industry has become
more like a commodity . In case of Engro foods so far nestle and hale are the only
diverse rival and another players that has just joined the UHT Milk sector is goodmilk, no
doubt the competition between Engrofoods and Haleeb is quite intense both are engaged
in consistent homework just to break and attract the customer towards each other
SWOT Analysis:
Strength:
Engro’s back.

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 well established brand name in
Fertilizer, IT and infrastructure business. ENGRO foods can easily afford research and
development costs for Olper’s have in order to introduce new products. It can also
distribute the brand through better channels because of its long term relationship with
distributors in the agriculture sector.

Positive response from customers:

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In first year, EFL crossed 1.4 billion sales figure which shows customers’ satisfaction
upon EFL’s products. 4. Its taste, quality proposition and world-class quality proposition
system.

Strong consumer & product research:

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

Third-Generation Plant:

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

Weaknesses:
Owning Red Color:

The company has not owned the color red like Nestle has a green Milkpak; Haleeb has a
blue carton etc. This may create problems because when a consumer enters a grocery
shop, then he/she might have problems in recalling the brand because there is no color
association attached to Olper’s. The company may need to find a suitable color in which
to focus its upcoming marketing strategies.

Low Quality Milk:

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

Packaging:

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

Milk collection & distribution costs:

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EFL’s 34 out of 40 milk-collection centers are located in Punjab, where as its only milk
processing facility is situated near Sukkur (Sindh). It increases the milk collection &
distribution costs; and also increases the chances of milk getting spoiled because of
increased traveling time.

Narrow brand portfolio:

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 portfolio still consists of just 3 products i.e.
Olper’s Milk, Olwell Milk and Olper’s Cream.

Opportunities:
Increased funding by Government:

Government has decided to increase farmers’ funding. This is an opportunity for

ENGRO foods because previously due to weather 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
milk for longer time periods.

Awareness:

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

Third largest producer of milk:

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

Threats:
Competition:

Competition may pose a threat because the company will 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 be difficult to penetrate in a market where the loyalties exist for such
brands as Nestle and Haleeb.

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Perceptions and Price Differentials:

Consumers’ perceptions and price differentials can cause a threat for the company. It is
important that Olper’s comes up to the expectations of the customers and fulfills its
conformance quality that is the company meets its promised specifications. Consumer’s
preferences change with time and prices might create certain barriers in terms of the
profit margins for Olper’s.

. COMPETITIVE ANALYSIS:

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

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

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

Long term Planning:

Engro Foods expansion on a bigger scale:

Engro Foods Limited who had recently set up Dairy industry in Central Sindh (UHT
Milk plant) by investing about Rs one billion, further plans to set up a similar set up in
Central Punjab and also emerging as Food 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, probably envying to emerge as an international
food company on similar lines as NESTLE did. The company plans exporting its
products to central Asia and Middle East.

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

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

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. 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 Accounts:

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 at Engro
Foods. Resumes of candidates are carefully filed and documented for current or future
reference. 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 Foods.

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 to the factory

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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 is also
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 and Distribution:

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

Human Resource Management:

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

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Organization Chart

PRESIDE
NT

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 CEO

VICE GENERAL
PRESIDENT MANAGER

REGIONAL ZONAL
MANAGER MANAGER

AREA TERROTIRIES
MANAGER MANAGER

LEADING:
Every organization includes people, and manger’s job is to work with and through
people to accomplish organizational goals. This is leading function. When mangers
motivate subordinates, help resolve work group conflicts, influence individuals or team
as they work, select the most effective communication channel, or deal in any way with
employees behavior issues, they are leading.
Managers at Engro influence others work behavior. Labours and subordinates to get
optimum task achievement even by satisfying them accordingly.

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MOTIVATION:

HERZBERG’S THEORy APPLICATION ON ENGRO FOOD:

According to Engro motivation is nothing new it’s a force which derives people towards
achievement.
“We are not only working for our self or for Engro but we all are working
for Pakistan.”

MOTIVATION FACTORS THAT REVOLVES AROUND ENGRO

and THEORY Y:

As per the Engro’s environment suggest every factor that revolves in its
Atmosphere has two impact that is the positive and negative.

1. Flexibility
2. Environment
3. Top-level managers

FLEXIBILITY:

Engro provide its workers full flexibility, they are result oriented. They
want their workers to perform their task efficiently and effectively. In organization as
they give their workers the space to perform their task according to their own
determination and giving best results to the organization in which they never compromise
about their success.

 TIME:

Engro do not care what time the workers enter or leave the office premises.
They are only concern with the result which they are expecting. Employers there,
are given a time period in which they have to complete their. They are goal
oriented. They are least concern with the time employees spend in office.

WORK:
Work environment in Engro is challenging yet attainable, currently the Engro
food is operating nine business units and is making a tough time for its competitor.
Example of Olper’s, a product of Engro foods can explain it clearly as it has given
a tough time to NESTLE and HALEEB.

TWO FACTORS THEORY AND ENGRO WORKING ENVIRONMENT:

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

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FAMILY:

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

WORK LIFE BALANCE:

They understand the importance of family and appreciate that their employees
need to balance their professional and personal responsibilities. It is Engro’s intent
to make it easier for their employees to manage their work/life balance more
effectively. Engro also encourage their employees to take part in numerous
programs aimed at strengthening their overall wellbeing.

EMPLOYEE FRIENDLY POLICY:

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

ENGRO WOMEN NETWORK:

Professionally Engro believes that networking, coaching and mentoring provide

opportunities for people to grow personally and throughout their careers at Engro.
Engro is known to be an equal opportunity employer. As part of their diversity
initiatives, “WEAVE” was formed to facilitate informal networks and relationships
among women employees of Engro across functions and affiliates.


CEO:
If the head or the upper management in an organization are simple, piratical, humble,
realistic, down to earth, that is the CEO of the Engro foods MR. SARFARAZ as seen by
the workers in the office said that for the past 3years he has being seen in 3 shirts and 3
pants. Then obviously there won’t be any artificiality in the air due to this reason the
workers are satisfied with their jobs and are motivated. Let’s take an example of the EFL
dinner where the CEO was standing along with the tea boy and the tea boy was asked to
cut the cake and do the cake cutting ceremony.
These factors explains that Herzberg’s Theory of motivation is also present in
the organization which satisfy all the workers with their jobs and are given such
facility which leads them to job satisfaction, job reorganization, personal and job

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security and good relationship with the sub ordinates and upper level management.
All the Motivational and hygiene factors are full filled with in the organization.

MOTIVATION IN ENGRO AT DIFFERENT LEVELS:

In Engro the managerial employees and non managerial employees are being also
motivated through following factors.
As the other companies Engro offers its employees:
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
Allowances,
 provident funds

Leadership:
We 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. We believe that leadership skills need to be
strengthened at all levels within our organization and that managerial and professional
competence is a necessary foundation.

INDIVIDUAL GROWTH & DEVELOPMENT:

We strongly believe in the dignity and value of people. We must consistently treat each
other with respect and strive to create an organizational environment in which individuals
are encouraged and empowered to contribute, grow and develop themselves and help to
develop each other.

Communication Network:
An understanding of managerial communication isn’t possible without looking at the
fundamentals of organizational communication. Communication within an organization
is often described as formal or informal.

Formal Communication:

Communication that follows the official chain of command or is required to do one’s job.

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Informal Communication:

Communication that is not defined by the organization’s structural hierarchy.

Communication Network:

The vertical and horizontal flows of organizational communication can be combined into
a variety of patterns called communication networks.
In Engro Pakistan all channel network is working because they think that employees are
our most important asset of our organization. All the company policies and information is
shared with the employee that’s why they are going to progress. Engro Pakistan is one of
the leading organizations in Pakistan and has a good communication network within the
organization as well as outside the organization. They are always in touch with
employees and shareholders for the betterment of organization. From better
communication network there logo “Growing with Pride” is fully understandable

Candid and Open Communications:

Engro foods value communications that are courteous, candid and open and that enable
each of us to do our jobs more effectively by providing information that contributes to the
quality of our judgment and decision making. Effective communication should also
provide the means for gaining understanding of the company's overall objectives and
plans and of the thinking behind them.

Individual Growth and Development:

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

Teamwork and Partnership:

We 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 a strength, which we must continue building into our organization.

Employees Welfare:

16 employees performed Hajj under Company's Hajj Scheme. A total of 357 employees
have performed the sacred pilgrimage since 1988 under this scheme. This year, 36
employees performed Umrah under Company's Production Incentive Umrah Scheme
making the aggregate of 336 employees since the inception of the scheme in 1997. Under

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this scheme, four employees are sent for Umrah in the month when a specified
production target is achieved.

CONTROLLING:
The final management function is controlling. After the goals and plans are set
(Planning), the tasks and structured arrangements determined (Organizing), and the
people hired, trained and motivated (Leading), there has to be some evaluation of
whether things are going as planned. To ensure that goals are being met and that work is
being completed as it should be, Engro’s manager regulates organizational activities so
that actual performance conforms to expected organizational standards and goals the
mangers must monitor and evaluate performance. Actual performance must be compared
with the previously set goals. If there are significant deviations, it’s management’s job to
get work performance back on track.

Negotiator at Engro represents the organization in major negotiation affecting the

manager’s area of responsibility means negotiator talk to external affecting factors to
maintain and improve the Engro’s alacrity.

According to Mintzberg Theory

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

1. Interpersonal Roles

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

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

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

2. Informational Role

Monitor at Engro seeks internal and external information about issues affecting
organization.

Disseminator at Engro transmits information internally obtained from either internal

or external sources, so that all employees go through by all current situations.

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 Spokesperson in Engro transmits information about the organization to outsiders so
people and other organizations can reach its features, benefits etc.

3. Decisional Role

Entrepreneur acts as initiator designer and encourager of change and innovation in

Engro to promote diversity and best selling.

Disturbance handler Takes corrective action when organization faces important,

unexpected difficulties at Engro like Technical or Mechanical fault, Labor union
issues, Labour health issues etc.

Resource Allocator in Engro distributes resources of all types including time,

funding, equipment and human resources so that services with in the organization and
out side the organization should be manage in proper order to get maximum output
from given resources and material.

Board Audit Committee:

The Board Audit Committee assists the Board of Directors in monitoring the framework
of managing business risks and internal controls. The Committee also assists the Board in
discharging its statutory and other responsibilities relating to internal controls, financial
and accounting matters, compliance, and business and financial risk-management. As per
latest scope of Internal Audit, it is no more police function rather it keeps the heads of
various functions of the Company to perform their duties more efficiently and diligently.
The Board Audit Committee of the Company comprises of four members. The Board of
directors is responsible to ensure that majority of the members of the Committee are
financially literate and possess the professional skills and personal characteristics
necessary to carry out their duties as members of the Committee. The Board recognizes
that it is desirable that at least one member of the Committee be a financial professional,
with accounting and auditing or related financial management expertise.

Internal Audit:

The Internal Audit department comprises a team of 4 staff members, including the Chief
Internal Auditor. The Internal Audit plan is reviewed and approved by the Board Audit
Committee. The reviews performed by Audit are aimed at assisting the Board in
promoting sound risk management and good corporate governance, through assessing the
design and operating effectiveness of controls that govern key business processes and
risks identified in the overall risk framework of the Company. Internal Audit's reviews
also focus on compliance with the Company's policies, procedures and regulatory
responsibilities, performed in the context of financial and operational and information
systems reviews..

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The functions of the Committee shall include the following:

• To review and approve the Chief Executive and Senior Executives' compensation;
• To establish all components of compensation for directors and recommend changes to
the Board;
• To assist the Board in reviewing and monitoring processes related to succession
plans;
• To review and monitor processes and initiatives related to work environment and
culture;
• To report to the Board of Directors on Committee findings, recommendations, and
any other matters that the Committee deems appropriate;
• To perform such other duties and responsibilities as may be assigned to the Board
Compensation Committee from time to time by the Board of Directors.

Management Committee:

The Management Committee is the consultative body within theEngro Foods, which
supports the development of policies and ensures the alignment and continuous
implementation of key priorities and performance. The terms of reference of the
Committee includes the following:

• To ensure that HR policies and procedures are aligned with the vision and strategic
objectives of the Engro food Company;
• To maintain a consultative role with the Board Compensation Committee;
• To ensure formulation of policies in the areas of HR Management and HR
Development including Compensation, Benefits and Performance Management;
• To provide general oversight and philosophy of the management cadre compensation
package;
• To discharge the responsibility relating to compensation packages by reviewing their
competitiveness with the market to attract, retain and motivate the human assets;
• To oversee the Company's plans for succession planning and development and
submission of Management Succession Plan to the Board;
• To ensure occupational health and safety of all cadres of employees;
• To provide leadership and guidance for the organizational transformation required to
achieve the corporate goals;

Board Compensation Committee:

The Board Compensation Committee assists the Board in carrying out its responsibilities
with respect to salary and other perquisites of the Company's senior executives. It also
assists the Board in matters regarding compensation in relation to retirement and, welfare
and other benefits plans.

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Human Resource Committee:

The Human Resource (the “HR”) Committee assists and makes recommendations to the
Board of Directors on matters relating to organizational structure, management
development, succession planning and establishing compensation policies.

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

waste. Separate bins have been provided for this purpose.

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

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

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

Standards:

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

Comparison of Sales:

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Years Sales (in Arab)
2006 3
2007 7
2008 11
2009 16
16
14
12
10
8
6
4
2
0
2006 2007 2008 2009

Company Market Share (%)

Engro 41%
Nestle 39%
Others 20%
50%

40%

30% Engro
Nestle
20%
Others
10%

0%
Market Share (%)

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 Others
Haleeb 5%
13%

MilkPak
43%
Good Milk
16%

Olper's
23%

Actions:
Engro food company write a report of every employees in every year. If a employ does
not work properly or not obey or fulfill the company requirement then maximum three
time report it and company dismiss the employ. company inspectors inspection the works
of employees and also check the relationship with customer through legally process. If
our product expire the date or any other default the company pays the full price of
product but others company pay only 50% of its price.

Social Responsibility:

Corporate Social Responsibility is at the heart of ENGRO’s work. We believe in working

with all the stakeholders to improve their quality of life, in a way that is both good for
business and development. We also believe in earning the trust of our stakeholders by
acting responsibly within the communities that we serve.

Environment Excellence Award-2009

The Company’s efforts for protecting the Environment were acknowledged by the
National Forum for Environment and Health (NFEH) by awarding DHCL the 6th Annual
Environment Excellence Award 2009

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Help for IDPs of Swat and Wana:

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

Land for Forest Fruit Plantation Wheat Cultivation

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

Water Purification Plant

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

Education Programs:
Ali Institute of Education, Lahore and The Citizens Foundation are the major partners of
ENGRO in educational interventions. A brief description of the educational projects led
by ENGRO is as follows:

Katcha Schools:

The program started off as an informal education program in Katcha (riverine) area of
Indus in Ghotki district with 2 schools in 2001.
Training and Resource Centre:

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

Sahara Welfare Society, a non-profit voluntary organization managed by company

employees at Daharki, runs a primary school, vocational training school and a free clinic.
Health Programs

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

Dialysis Centers at Daharki and Mirpur Mathelo:

Responding to the President of Pakistan and local government’s desire for enhanced
corporate support for Ghotki and surrounding areas, company constructed its second
dialysis centre at District Head Quarter Hospital Mirpur Mathelo in 2004, at a cost of Rs
3.5 million
Tele-Medicine Project

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

References:
1. Strategic Management concept and cases by FRED R DAVID 12th edition.
2. Marketing Management by Kotler 11th Edition.
3. http://www.scribd.com
4. www.olpers.com.pk
5. www.engrofood.com.pk
6. www.engrochemicals.com
7. www.docstoc.com
8. www.google.com
9. www.wikipedia.com
10. HASSAN RAZA ( Area manager)
0302 8545796

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