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FINAL PROJECT PRSENTATION

PRINCIPLE OF MANAGEMENT By Athar Qadeer

Date of Submission: 12-12-2015
Faiza Hina - 28212, Hussain Sikandar - 27926, Yashfeen Shah - 27825 ,
Mohammad Zaheer - 28281 , Mohammad Ali - 28280
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ACKNOWLEDGEMENT

Countless Thanks to He Who Is Lord of Lords

At first instant, humbly we bow our head with all the feeling of our heart
and soul before the Almighty Allah, the beneficent, the omniscient
who bestowed us with all the mental abilities to work out this
project.
The report being submitted today is a result of collective effort. There are
innumerous helping hands behind who have guided us on our way.
Writing this report appeared to be a great experience to us. It added a
lot to our knowledge. This report is one of our memorable
experiences in student life.
Though words are inadequate in offering thanks to our teacher but we
owe our profound gratitude to Sir Athar Qadeer for stimulating
our creative abilities by assigning this project to us and for his able
guidance and useful suggestions, which helped us in completing the
project in time. Whatever we have learnt from him and this report
has put indelible impression on our minds and it is our conviction
that this learning experience will always be a source of help in our
practical life and professional career.
Finally, yet importantly, we would like to express our heartfelt thanks to
our beloved parents, for cooperation, help, kindness and blessings,
our family and friends for their help and wishes for the successful
completion of the work.
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SUMMARY

This is the project about Portfolio Analysis of a company.

In this regard the company which we chosen to be analyzed is
ENGRO CORPORATION.
The company is dealing in food business for many years. The company is
well reputed in the market and deal in a wide range of healthy food
products. Its product line contains products such as milk, tea whitener,
cream, ice cream, juices, flavored milk and many others.
The company has strong marketing strategies to come up with in a
competitive market.
It has targeted all of its customers no matter they are of what age. The
company is running its business so well.
ENGRO FOODS & CORPORATIONis the 1st company which is using
Bactofuge technology. The company has not been in this business for
as long as NESTL is, but the way it has grown up is appreciable.
It has come up with innovative features in its products.
The company has capability to pay it liabilities on time and to keep its
assets managed. ENGRO FOODS not only provide incentives to its
stockholders but also to its employees. It offers its employees much
outdoor training so that they can work in a healthy environment and
dont get tired of their hectic routine. That is why it has many loyal
employees to work with..
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TABLE OF CONTENTS

Contents Page
Acknowledgment 2
Summary 3
Introduction 5
Overview of Engro 6
Mission 7
Vision 8
Policies, Rules & Regulations 9
Goals & Plans 10
Core Values 11
Product Portfolio 13
SWOT Analysis 14
BCG Matrix 15
Organogram 16
The Recruitment Process 17
Departmentalization 21
The Production Process 24
Leadership 25
How Engro motivates? 26
Controlling 29
Awards & Recognition 30
Recommendations 31
Conclusion 32
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INTRODUCTION

Engro Foods is among the biggest and fastest growing companies in

Pakistan with a vision to cater to local needs with products
conforming to global standards.
Engro Foods Limited is a subsidiary of Engro Corporation which is
one of the most reputed enterprises in Pakistan with more than 40
years of diversified operations in the areas of fertilizers and
chemicals.
Basic Foundation: 1957 as Esso/Mobil Joint Venture, Company
Incorporated 1965 as Esso Pakistan Fertilizer Company Limited.
Engro Foods started its business in 2005-06.
Top Quality Brands like Oplers, Tarang, Omore , Dairy Omung ,
Omung Lassi have been launched.
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OVERVIEW OF ENGRO

12 Brands.
Key People, Hussain Dawood (Chairman), Aliuddin Ansari (CEO)
Head Quarter, Karachi.
Area Served, Pakistan.
2093 Employees (December 2009)
45% Market Share of Dairy Products.
Market Share in 310 Cities in Pakistan 18 states in USA 4 Provinces
in Canada.
18th Largest Customer of Tetra Pak World Wide.
2nd Largest Company of Chilled Milk Collection of Pakistan.
900 Milk Collection Centers.
35,000 farmers directly linked with Engro Foods Limited.
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MISSION

Our mission is to provide satisfaction at a competitive cost, growth in

diversity, and continue to contribute to the growth of
industrialization in Pakistan by being the market leader".

We believe our success depends on our customers. Thus, our primary

value is fulfillment of our customer's needs. Our manner of achieving
this success is to include value for money.
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VISION

"To be the Premier Pakistani enterprise with a gobal reach passionately

pursuing value creation for all stakeholders."
To become fast growing mega Food Company & also to elevate
Consumer Delight Worldwide.
The Company aims to generate a significant portion of its revenue from
foreign operations.
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POLICIES, RULES & REGULATIONS

The policy of Engro Corporation Limited, as stated over the years by the Board
of Directors, is one of strcit observance of all laws applicable to its
business.
There policy doesnot stop there. Even where the law is permsissive, Engro
corporation chooses the course of highest integrity. Local customs,
traditions, and mores differ from place to place, and this must be
recognized. But honesty is not subject to criticism in any culture. Shades
of dishonesty simply invite demoralizing & reprehensible judgments. A
well-founded reputation for scrupulous dealing is itself a price company
asset.
They donot care how they get the results. Engro expect compliance with our
standard of integrity throughout the organization & donot tolerate an
employee who acheives results at the cost of violation of laws or
unscrupulous dealing. By the same token, Engro support & expect to be
supported, an employee who passes up an opportunity or advantage which
can only be secured at the sacrifice of principle.
It has been & continues to be Engro Corporation's policy that all transactions
shall be accurately reflected in its books and records. This, of course,
means that falsification of its books and records and any off-the-record
bank accounts are strcitly prohibited.
This policy in in accord with the previously stated policies of
Engro Corporation Limited.
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GOALS & PLANS

After the struggle in restructuring its distribution network and improving

the milk-collection system, Engro Foods is hoping that a new dawn
is around the corner.
The subsidiary of Pakistans largest private-sector conglomerate Engro
Corporation had been struggling with its distribution system until
mid-2013, which hurt its growth and dampened plans for the future.
But, keeping long-term growth in mind, the issues were fixed with the
CEO terming the current year when the local foods giant makes a
comeback.
The company, however, has no plan of expanding business beyond dairy
products at least not anytime soon.
When we founded Engro Foods, it was decided that it would mainly
be a dairy company, said Chief Executive Officer Sarfaraz A
Rehman in response to a question about the companys long-
term plans.
Though it plans to focus on dairy products, the company may not launch
its own brand of yogurt in the near future.
The decision to launch yogurt will depend on the countrys energy
situation. We have already learned a lot from the experience of
our ice cream venture.
Though it may take them a while to launch their own brand, the company
is already selling yogurt at Mabrook shops, the Karachi-based retail
chain of Engro Foods that sells loose pasteurised milk. The company
calls it a pilot project.
This pilot project [Mabrook] will continue for another year before
we make a final decision, said the CEO. It has not been easy to
open more stores.
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CORE VALUES

Health Safety & Environment

We will manage and utilize resources and operations in such a way that
the safety and health of our people, neighbors, customers, and visitors is
ensured. We believe our safety, health and environmental responsibilities
extend beyond protection and enhancement of our own facilities.

Our People
We strongly believe in the dignity and value of our people. We must
consistently treat each other with respect and strive to create an
organizational environment in which individuals are fairly treated,
encouraged and empowered to contribute, grow and develop themselves
and help to develop each other. We do not tolerate any form of
harassment or discrimination.

Community and Society

We believe that a successful business creates much bigger economic
impact and value in the community, which dwarfs any philanthropic
contribution. Hence, sustainable business development is to be anchored
in commitment to engage with key stakeholders in the community and
society. Our motto is, Quality in all we do.
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Ethics & Integrity

We do care how results are achieved and will demonstrate honest and
ethical behavior in all our activities. Choosing the course of highest
integrity is our intent and we will establish and maintain the highest
professional and personal standards. A well-founded reputation for
scrupulous dealing is itself a priceless asset.

Enjoyment & Fun

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

Innovation & Risk Taking

Success requires us to continually strive to produce breakthrough ideas
that result in improved solutions and services. We encourage challenges
to the status quo and seek organizational environments in which ideas are
generated, nurtured and developed. Engro appreciates employees for well
thought out risks taken in all realms of business, and for the results
achieved due to them, acknowledging the fact that not all risks will result
in success.
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PRODUCTS PORTFOLIO

Engro Foods put great emphasis on manufacturing food products that

combine great taste with the best value and nutrition to enhance lives,
excite consumers and exceed expectations everyday.
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SWOT ANALYSIS OF ENGRO
This SWOT Analysis of Engro Corporation Ltd provides a strategic
SWOT analysis of the company's businesses and operations. This
free SWOT analysis shows strengths, weaknesses, opportunities
and threats. This SWOT analysis of Engro Corporation Ltd can
provide a competitive advantage.

STRENGHTS WEAKNESSES
-Barriers of market entry -Tax structure
-High growth rate -Brand portfolio
-Monetary assistance provided -Productivity
-Existing distribution and sales -Small business units
networks -Competitive market

OPPORTUNITIES THREATS
-Income level is at a constant -Government regulations
increase -Rising cost of raw material
-Growing demand -Law & order situation
-Growth rates and profitability -Energy,Gas & Electricity
Shortage
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BCG MATRIX OF ENGRO

It is a portfolio planning model which is based on the observation that
a companys business units can be classified in to four categories:

Stars.
Question marks.
Cash cows.
Dogs.

It is based on the combination of market growth and market share

relative to the next best competitor.
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ORGANOGRAM OF ENGRO
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RECRUITMENT PROCESS OF ENGRO

The recruitment process is taken very seriously. It is vital that Engro

select people with qualities essential for its continued success. Its human
resource team is comprised of experience recruitment professional with
diverse backgrounds.
During the recruitment process objective view is taken and best practices
are followed. Engros recruitment methodology is based on examining
capabilities or competencies. These capabilities are sets of behavior skills
and knowledge that can be determinants of job success and focus on the
role requirements. Thereby insuring consistency and accuracy in
assessments and increasing the reliability of the selection process.
The recruitment is different for two different categories of people. First is
the Management Profession and Technician and the second is Non
Management Profession and Technician. There are seven different
division of Engro. All have separate HR departments which evaluate the
candidates for respective positions in their division
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1. IDENTIFICATION OF NEED
The first step is to check whether there is a requirement for new
selection. If there is a new position to be developed then COED checks
for that. If an already existing position has become vacant due to any
reason, then the department notifies the Human Resource Department to
place advertisement in the newspapers.

2. ADVERTISEMENT
After the identification of need, the Human Resource department places
the advertisement in the newspaper to call for resumes. The
advertisement specifies the job description and the job specification.

3. JOB DESCRIPTION
These are the listing of duties as well as desirable qualifications for a
particular job e.g. the advertisement also specifies number of years worth
of experience to apply for the job.

4. JOB SPECIFICATIONS
These are the characteristics and the abilities required from a person to
work in that position such as leadership and teamwork qualities or
command over English.

5. APPLICATION FORM\ SUBMISSION OF RESUME:

Application forms enable the candidates to present a complete picture of
their talents, interests and ambitions. It is the first stage of evaluation and
the basic criteria for initial selection. The candidates must present a
resume which makes the person stand out.
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6. EVALUATION OF RESUME
After the resumes of hopeful candidates have been received, the HR
department checks all the resumes of the people who have applied. In its
evaluation the HR department checks the experience and the qualities of
the individual and matches them to the requirement of the job.

7. SHORT LISTING
After the evaluation of the resumes the HR shortlists the candidates who
have fulfilled the minimum requirement of the job description and
specification.

8. TEST
The test is conducted by the HR department. In the test the managers
check the IQ level, English Composition and Logic. The duration of the
test is exactly one hour. The test is checked manually and is done by the
HR department.

9. INTERVIEW
The candidates who have successfully cleared the tests and have scored
above than relevant mark are then called for interview. The interview is
conducted by four people, on executive and three managers. All the four
interviewers should preferably be from within the department but often
that is not the case. The purpose of the interviews is to check the persons
subjective skills which are difficult to measure such as attitude,
communication skills, abilities and personality. During the interview all
four person mark the candidate individually and then put forward a
cumulative mark. These are the marks against which different candidates
are differentiated.
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10. RECOMMENDATION TO HUMAN RESOURCE

DEPARTMENT
Following the interview the employee of the particular department goes
to the HR and gives recommendation to the HR manager regarding the
interview of the candidate. The HR then conducts an interview with the
candidate where they decide the Grade scale of the candidate, the
different benefits and the pay scale.

11. MEDICAL
After the terms of contract is agreed upon, the candidate is asked to have
a medical test.

12. HIRING
After the medical test, the candidate is referred back to the relevant
department with the contract. If the department agrees upon it, then the
candidate is hired.
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DEPARTMENTALIZATION OF ENGRO

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 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.
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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 atEngro 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 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.
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6. Management Information System

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 liters 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.
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THE PRODUCTION PROCESS AT ENGRO

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LEADERSHIP AT ENGRO

Engro's leadership comprises some of the most enterprising leaders of the

corporate world in Pakistan. These individuals are
responsible for conceptualizing and articulating goals that bring our
people together in pursuit of set objectives. They lead the company with
a firm commitment to the values and spirit of Engro. In our journey to
become a profitable, growth-oriented and sustainable company, our
management structure has evolved to create a more transparent and
accessible organization
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HOW ENGRO MOTIVATE ITS EMPLOYEES?

COMPENSATION AND BENEFITS/ PERFORMANCE

APPRAISALS:
The Company's Total Remuneration package is competitively aligned to
the best in the industry and is appropriately balanced between providing
cash compensation and benefits, including, medical and retirement
benefits. The annual salary rewards are linked to employee performance.
An Employee Share Option Scheme operated by the Employees Trust
offers new employees the opportunity to acquire ownership in the
Company.

Highest Salaries:
The salary packages Engro foods offer its employees the highest
remuneration package thats far above the industry average. And that's a
major part of its compensation philosophy to always keep employees
above their profile's market value. So be you an experienced professional
or a fresher, at Engro foods, you'll get the highest salaries ever.
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Benefits:
At Engro Foods, they value quality human resource. Their employees
lend the creativity and passion to meet business challenges with bold new
ideas. It offers unparalleled employee benefits, ranging from medical, to
financial and recreational. They want to keep their most important asset -
their people - healthy and happy.

Travelling and Subsistence Expenses:

All employees will be reimbursed for any travel and subsistence
expenses incurred in the course of their duties.

Holiday:
Each employee is entitled to a basic 23 days holiday per year. However,
for some people this amount is either too much or not enough. For this
reason, all their employees have the flexibility to trade salary and
holiday. Employees can choose between 15 days and 30 days holiday per
year, with the maximum rising to 40 days per year after two years'
service.

Car Allowance:
For consulting positions a car allowance is included in the package.

Pension and Life Assurance:

After three months' service, every employee has the option to join the
company's group personal pension scheme, or to take a cash alternative.
All employees are covered under Life Assurance from their first day with
Engro foods. The company contributes to the scheme and reviews its
contributions on a periodic basis, to ensure that these remain suitable,
attractive and fair.
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Gain Sharing:
On top of their highest salaries and outstanding benefits are their
performance based bonuses. And its performance gauge is very different.
They don't base employees performance on defined targets - they base it
on a certain percentage of the top performers among you. So every
quarter, the top 50% performers qualify for bonuses.

Permanent Health Insurance:

Engro Foods provides Permanent Health Insurance to all employees from
their first day

Health Scheme:
After six months' service, an employee can elect to join the
company's.
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CONTROLLING AT ENGRO

Due to Engros tremendous Standards and Quality checks, its

Performance Measure Criteria and Standard Operating
Procedures (SOPs), Engro has been awarded numerous times in
so many years and because of that it is Pakistans one of the
leading ISO certified company.
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AWARDS & RECOGNITION

Engro Corp wins the ACCA WWF-PERA Award for becoming the first organization in
Pakistan to adopt the integrated reporting model in their Annual Report 2013.
Engro Corp wins award in the Employmee Engagement category at 8th National CSR
Awards held by CSR Association of Pakistan.
Engro declared Best Green Office Coordinator by WWF Finland.
Engro receives Mehergarhs Award for Leaders of Change for its gender equality
initiatives.
Engro Corps Annual and Sustainability Report of 2013 declared 1st Runner-up by the
SAFA Best Presented Annual Report Awards 2013.
Engro received the Investor Relations Award at the 11th CFA Pakistan Annual
Excellence Awards ceremony.
Engro Corp Annual and Sustainability Award 2013 won two ICAP-ICMAP Awards the
Best Corporate Report Award in its category, and the Best Sustainability Report Award.
Engro Polymer Annual Report 2013 won the ICAP-ICMAP Award for Best Corporate
Report Award in its category.
Engro Foods Annual Report 2013 secured 2nd Position in the ICAP-ICMAP Awards for
the Best Corporate Report Award in its category.
Engro Corporation won the Best Corporate Governance in Pakistan Award for 2014.
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RECOMMENDATIONS

* Engro Foods should have much diversified bi-product line of dairy products

like Nestle & Haleeb.

* They should introduce new promotions to get customersattention.

* EFL should expand its dairy farms so that they can get

competitive advantage.

* EFL should focus on Market Penetration, Market Development and Product

Development strategies with more efforts to be the

market leader.

* They should go expand its capacity to enter into in international

market like Nestle.

* Engro Foods can be into Co-branding with other brands like Olpers with

Lipton tea bags, Olpers with different biscuits etc. to

increase their sales.

* They can also move towards other foods products like Nestle launch Kit Kat

Chocolate, Maggi Noodles, Sweets Candies etc.

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CONCLUSION

- Engro is going to be a market leader due to different reason like its financial
position, product quality, R & D, market share, sales growth etc. Its price is
more or less equal to its competitors, it matches its quality with its
competitors and capturing its competitors share from market. Engro is using
its brand name and its packaging is good to promote its products and EFL is
becoming very popular as compared to its competitors.

- Company has planned to make Omore world class premier quality brand like
existing brands of Engro Foods. Company is also working on cereals in
coming years. They has planned to move other dairy products as are offering
by its competitors Nestle like yogurt, flavoured yogurt (raita), cereal for
babies etc. Foods competitors Nestle and Haleeb are biggest threat. There
are opportunities and doors for new players are open who can be the future
competitors.

- Consumer is aware now, there is need to maintain the quality of products.

Consumers perceptions and price differentials can cause threat for the
company, Consumers preferences changes timely and prices might create
certain barriers in terms of the profit margins for ENGRO FOODS.

- In short Engro Foods should grow and maintain its position. That is why EFL
is increasing Market Penetration, Market Development & Product
Development strategies.