zahida engro (1)

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Internship Report

Acknowledgement

Apart from the efforts of me, the success and completion of any work depends largely

on the encouragement and guidelines of many others. I take this opportunity to express

my gratitude to the people who have been instrumental in the successful completion of

my internship and internship report.

I would like to show my greatest appreciation to my internship supervisor at the institute

Sir Tariq Mahmood and internship supervisor in the organization (EFL) where I

completed my internship, Mr. Muhammad Asif HR Officer in Human Resource

department. I cant say thank you enough for their tremendous support and help. I feel

motivated and encouraged every time as they helped me and guided me whenever I

needed. Without the encouragement and constant guidance from Mr. Aalam Khan, I

would not have been able to learn a lot and complete my internship and internship

report.

The guidance and support received from both of my supervisors, was vital for the

success of my internship and internship report. I am grateful for their constant support

and help.

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Executive Summary

This report is about my internship experience. My eight weeks internship in EFL Sahiwal

Plant was a compulsory part of my degree. Doing internship in EFL Sahiwal Plant was a

great opportunity for me as I got platform to acquire practical knowledge and experience

and learn the working of finance department. I completed my internship in finance

Department. EFL is an affiliate of Engro group. Now in short span of five years they are

offering a number of products. A new ice cream Omore launched by EFL is a great

success on the side of EFL. The company is continuously moving towards success. In

this report I have discussed the brief history of EFL, their brands, their core values,

departments in Sahiwal Plant, the working of finance Department and most of all I

focused on my learning as an internee in EFL. I have explained my duties that were

assigned to me during my internship. I completed all the tasks assigned to me. I havediscussed those tasks in detail in this report. I found the people in the finance

department very cooperative. My supervisor Mr. Aalam Khan guided me at every stage

and helped me to learn the activities and then practically perform all those activities. On

the basis of my working experience I also did the SWOT analysis of the company

specially focusing on the EFL Sahiwal Plant. My internship experience will smooth the

progress of my career specially while entering the professional life, as now I have the

practical experience of working in any organization. I have also thrown light on the

aspect that how internship will impact my career. Internship experience is also a great

opportunity in a way that I got a chance to evaluate and examine the practical

implementation of what I have read in my course of finance; this will help me further in

my specialization. I have explained all my findings and new knowledge acquired while

working as an internee.

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Table of Contents

Table of Contents..............................................................................................................3

Vision:................................................................................................................................5

Mission Statement:............................................................................................................5

Values:...............................................................................................................................6

Integrity..............................................................................................................................6

Our People.........................................................................................................................6

Innovation..........................................................................................................................6Corporate Social Responsibility (CSR)............................................................................6

Consumer Centric..............................................................................................................6

Customer is the king of the market .So the basic target of any organization is their

customers. Engro is delivering high quality to their consumers........................................6

Objectives and Goals.........................................................................................................6

Main Brands.......................................................................................................................7

Main Branches...................................................................................................................8

Fertilizer Business ...................................................................................................8

Engro Energy Limited .......................................................................................................8

Engro Innovative Automation Limited ...............................................................................9

Engro Vopak Terminal Limited .........................................................................................9

Engro Asahi Polymer &Chemicals. Limited ......................................................................9

Executive Committee.......................................................................................................10

Competitor analysis.........................................................................................................12

Segmenting and targeting the Market for Olpers............................................................17Demographic Segmentation............................................................................................18

Psychographic Segmentation..........................................................................................19

Behavioral Segmentation................................................................................................19

Placement and distribution..............................................................................................20

Promotion and Distribution..............................................................................................21

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Promotional strategy:.......................................................................................................21

Purpose of HR Department.............................................................................................24

Main Functions of HR Department ................................................................................24

Organization of HR department.......................................................................................24

Major Functions of HR department..................................................................................26

Recruitment & Selection..................................................................................................29

Orientation by Department..............................................................................................32

Performance & Management...........................................................................................33

Career Planning and Management.................................................................................35

SWOT Analysis................................................................................................................48Strengths..........................................................................................................................48

Weaknesses....................................................................................................................50

Opportunities...................................................................................................................51

My learning experience during Internship Program........................................................56

Suggestions and Recommendations...............................................................................58

Overview of the Organization

The 21st century for Engro Corporation has thus far proved to be the most successful

period in the total life of Engro, from then onwards Engro has only faced success and

never looked back, 2003 was the year of the establishment of Engro EXIMP, after which

in 2005 Engro decided to expand their business more by venturing into the food

business by establishing Engro Foods Limited, which is now experiencing a great

success and contending now with international brands like Nestl and Wall's Ice Cream.

Engro Foods Limited is auxiliary of Engro Chemical Pakistan Ltd. which is one of the

most reputed enterprises in Pakistan with more than 40 years of diversified business

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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, Olpers

Lite, 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, effective Supply Chain

has geared Engro for the growing sales of their products.

Vision:

Engro Foods vision is Elevating Consumer Delight Worldwide and the Company aims

to satisfy their customer and to make them their loyal customers and generate a

significant portion of its revenue from foreign operations.

Mission Statement:

We exist to deliver high quality food products, which exceeds our costumers (EFLs)

expectations. Our people are greatest assets and we have a value in market place,

which inspires excellence in our teams. Our deed reflects our pride in being

environmentally responsible and good community citizen which enhance our goodwill

and creditworthiness.

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Values:

IntegrityEngro has crystal-clear processes ,open disclosure policy and decentralization decision

making. They are doing their business activities and transactions with fairness and

honesty.

Our People

Engro have a team of passionate people which are self directed and skilled and trained,

they have intelligence and firm approach towards business. Engro enhance their skills

by facilitating them with training, fun loving environment, necessary resources and

facilities.

Innovation

Engro has team of innovative people, which innovate new products and make

continuous improvement in the existing products .Engro always encourages innovation

by their people or from wherever they get anything new.

Corporate Social Responsibility (CSR)

Engro has always follow CSR rules to take the measures for the safety of their people

or the environment. Engro always consider it, their responsibility to take care of their

employees and ocal people because they all are the valuable assets for him.

Consumer Centric

Customer is the king of the market .So the basic target of any organization is their

customers. Engro is delivering high quality to their consumers.

Objectives and Goals

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Engros main goal is to satisfy the customers needs and wants by providing them high

quality products like Olpers Milk, Omore Icecream, Olfruite etc. Second main objective

of Engro is to increase the profit share, market penetration, goodwill ,creditworthiness

and get hold on a large market share.

Main Brands

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Main Branches

Fertilizer Business

Agriculture accounts for 25% of GDP and 45% of employment in Pakistan Second

largest Urea producer of Pakistan .Capacity975 KT/A Market share20% Second highest

phosphates sales (~400KT/A) Market Share 23% ECPLs Margins are by far the best

in the industry. Zarkhez (NPK) Market leader -Capacity 160 KT/A Market Share 95%

Urea shortage expected to grow to 1.2 million tons/annum by 2010. Worlds largest

single-train Urea plant of 1.3 million tons being setup at a cost of US$ 950 million. On

commencement of operations in mid 2010, cash fixed costs of the new plant will be a

third of the existing plant; scale & brown field synergies Gas consumption at the new

plant will be 15% less than the existing plant. Engros Daharki complex will become the

worlds fifth largest Urea production site; 2.28 million tons, 3 plants.

Engro Energy Limited

Established in 2006-100% owned subsidiary Pakistan is facing growing energy deficit

Energy consumption has been growing at 7% per annum Setting up a 220 MW gas

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based power plant at a cost of $220 million with commercial operation in 2009 Short-

listed along with 3 other companies for privatization of Jamshoro Power Company.

Engro Innovative Automation Limited

Acquired majority stake (51%) in a knowledge based company Innovative Engineering

& Automation Ltd in 2003 Market Leader in domestic Industrial Automation Honeywell

distributor in Pakistan Expanding internationally to synergize, and benefit from lower

costs at home and higher demand abroad Now operating in Dubai, UAE which

contributes 25% of revenue and half of the profit Companys first IP product iboiler

launched internationally in 2006 Acquired an automation company in the US in Dec.

2006; mandated to develop outsourcing opportunities.

Engro Vopak Terminal Limited

A 50-50 JV with Royal Vopak of Holland; established 1997 Royal Vopak is the worlds

largest independent tank terminal operator Engro Vopak handles 70% of liquid chemical

imports in Pakistan .Setting up our countrys first Cryogenic facility for ethylene imports

Well positioned for setting up proposed LNG terminal under active consideration of the

government; Cost US$ 350 400 million.

Engro Asahi Polymer &Chemicals. Limited

Established in 1999. 80-20 JV with Mitsubishi Corp. Pakistans only PVC manufacturing

plant; facing buoyant domestic demand since 2006 Successfully placed 22% of sales in

diverse export markets from Australia to East Africa in prior years (2004 2005)

Expansion and back integration underway imported ethylene + new caustic soda plant;

EDC/VCM/PVC.

Organizational structure

Engro's 13-member Board of Directors is responsible for the overall supervision of the

company.

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1. Hussain Dawood (Chairman)

2. Asad Umar (President)

3. Asif Qadir (Director)

4. Arshad Nasar (Director)

5. Shahzada Dawood (Director)

6. Israr Ahmed (Director)

7. Shabbir Hashmi (Director)

8. Khalid Mansoor (Director)

9. Rohail Mohammad (Director)

10.Khalid Siraj Subhani (Director)

11.Muhammad Aliuddin Ansari (Director)

12.Abdul Samad Dawood (Director)

13.Saad Raja (Director)

Executive Committee

Committee is headed by President & CEO Mr. Allahudin, while others include:

Mr.Asif Qadir (President & Chief Executive Officer Engro Polymer &

Chemicals Limited),

Khalid Siraj Subhani (President & Chief Executive Officer Engro Fertilizers

Limited),

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Bakhtiar Wain (President & Chief Executive Officer Avanceon Limited),

Khalid Mansoor (President & Chief Executive Officer Engro Powergen Limited),

Sarfaraz A. Rehman (President & Chief Executive Officer Engro Foods Limited),

Shaikh Imran-ul-Haque (President & Chief Executive Officer Engro Vopak

Terminal Limited),

Ruhail Mohammed (Group CFO Engro Corporation Limited),

Tahir Jawaid (Vice President Engro Corporation Limited) and

Syed Ali Akbar (Vice President Marketing Engro Foods Limited)

Integrated Management Policy

The management and employees of EFL are committed to maintain a leading

position in Halal and safe food value chain of Dairy Farm, Milk procurement,

processing at Dairy produced (UHT milk, powder milk, icecream and Ghee) and

huices and Nector, through team work continual improvement, implementation of

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good practices and maintaining the hygiene food excellence and safety standards

to the entire satisfaction of our valuable customers.

We are also endeavoring to comply with International, National and companys own

health, safely hygiene, quality and regulation applicable to EFLs IMS and take concrete

measures to minimize waste, prevent pollution, conserve natural resources, prevent

injury and ill health of our people.

Reviews at defined targets/objective and their fulfillment for continued improvement are

the hall mark of all activities undertaken by EFL.

Competitor analysis

Brands like Milk Pak (owned by Nestle) and Haleeb Milk (from Haleeb Foods) had led

the dairy market in the worlds fourth largest milk producing country for nearly two

decadeswithout any real sustained competition. Engro Foods, in contrast, had only

recently been established by Engroa traditional giant in Pakistan's chemical and

fertilizer.

Branding experts could not imagine how Olpers could distance itself from its parent

companys incredibly unappetizing, chemical-laden, and non-edible roots. Yet, by the

end of 2006, sales for Olpers Milk had reached Rs.1 billion (approximately US$ 15

million) and in 2008, the brand has a market share of close to 22 percentsecond only

to Milk Pak (estimated at 40 percent). The critics had to grudgingly accept that the new

entrant to the multi-billion rupee packaged milk category meant business.

The packaged milk category was originated in 1981 by (quaintly named) Milk Pak,

which pioneered tetra pack milk in Pakistan. The supply chain involved collecting milk

from rural areas across Punjab, processing the milk through UHT (Ultra-High

Temperature Processing) treatment, and selling it to consumers in uniquely colored

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triangular and rectangular packs designed to prolong the milks quality. Milk Paks Milk

Packs were very well-received and the brand soon became synonymous with quality

milk. Its first real competition came in the form of Haleeb, which introduced distinctively

blue tetra packs to the market in 1986.

Milk Pak, however, further grew in stature when Nestle used it to break into Pakistan's

marketplace. By 2006, the dairy milk category was growing at 20 percent annually, and

Milk Pak and Haleeb were well-entrenched brands with distinctive colors and brand

promises of providing high quality, natural and healthy milk. Milk Pak was identified by

its green and white packagingthe colors of the countryand offered a brand backed

with the strong equity of Nestle, coupled with its own traditional heritage. Haleeb was

recognized as the blue brand, and professed to have the "naturally thickest" milk. With

the market dominated by two strong, familiar, and widely respected brands, the

marketplace appeared completely impervious to new comers.

Olpers, however, stepped into the forway by launching a massive campaign that started

off with an introductory slice-of-life television commercial featuring some of the biggest

stars in Pakistan. Billboards went up at key locations in the major cities, and soon thebrand had become a voice above the media cluttera voice that differentiated Olper's

brand from the others.

Rafey Nisar Zuberi, the marketing manager for Engro Foods, says, From the onset, we

wanted to introduce a true paradigm, bringing the dairy brand to the fore. The name

itself made it sound like a foreign brand, giving the perception of quality, and was unlike

anything previously experienced by Pakistani consumers. Rafey continues, We wanted

consumers to consider Olpers as a contemporary and modern brand, and all of ourcommunication and brand attributes were geared toward ensuring that end.

To a large extent, they were successful. It was certainly a campaign with its own

unique identity, says Farah Jamaluddin, a media professional. All of their

communication was aesthetically on the mark and had a sense of synergy about it, she

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Explains. The campaign highlighted and expanded upon the various occasions in which

milk could, and should, be enjoyedand kept driving home that message through its

various promotions. Olpers became the "All Purpose Milk" and could be consumed with

breakfast or blended with tea (arguably the most popular beverage for the masses in

Pakistan), and appreciated by all members of the family. Engro Foods utilized a

dynamic campaign, and during Ramadan (the Muslim month of fasting), molded its

message to talk about the "All Purpose" nature of their brand during both Iftaar

(breaking of the fast at dusk) and Sehree (pre-dawn food before the fast). We are

aiming to own the religious month and our special edition packaging, Ramadan relevant

ATL (Above The Linetelevision, radio, etc.) and tailor-made iftaar activations, are

aimed at building the necessary association we want in consumers minds, Rafey

points out.

Other avenues of BTL (Below The Linebrochures, flyers, etc.) have also contributed

to the brands success. The World of Olpers, for example, involves reaching out to the

different locations in various cities and having the housewives participates in learning

and showcasing milk-based recipes. The intention is to purely build trial experiences,

says Rafey. We are in our third year, and so far we have had close to 350,000contacts, he adds with pride. The Olpers Consumer Relationship Party is another

ongoing BTL based program, which intends to create and maintain loyalty amongst the

brands users.

In its launch, Engro Foods has made a conscious and concerted effort to distance its

milk brand from its parent companys chemical and fertilizer roots to ensure that no

negative connotations or cross-pollination of brand identities were manifested in the

minds of consumers. Interestingly though, the company has been able to use Engroshistorical equity with rural farmers positively toward growing its milk collection network in

the province.

Our milk collection network has grown exponentially post launch, says Rafey.

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So much so that we reached our supply capacity within six months and had to begin

using a second UHT plant within three months,

he adds. Today, Engro Foods aims to become the only company to utilize all of the milk

collecting areas in Pakistan and also plans on developing the biggest dairy farm in the

country. The companys reputation as a local giant actively involved with community

welfare in remote areas has also been a positive add-on for Engro Foods.

Marketing Strategy

The milk sector in Pakistan is Huge. According to SMEDA Engro produce about 28

billion liters a year and Packaged Milk is just a dent on this number.Packaged Milk is

still not that popular here Because of various socio economic factor .92% to 93% of milk

is open milk. It may possible that after some time the need and demand of packaged

milk increases and the drive to turn that need into profit that defines the success of a

Good Business and Olpers saw that need.

Before OLPERS, Nestle MILKPAK was the king of the castle and Haleeb was second

best. Sometimes Businesses become too comfortable with present situations and

forgets and also forget strategic vision and analyzing the market and that is exactly what

happened.

The grass mowed under the feet of Nestle and Haleeb when OLPERS (with huge

financials) came in. OLPERS did something else that was amazing; they attracted, they

strenghten and delighted their customers into becoming more health conscious and

purchase savvy.

Haleeb lost their market share and their place as second best. It was an all out war of

the worlds and Olpers came prepared. A barrage of line extensions and big budget

spending saw them become one of the most recognizable brands in Pakistan, and that

too in just two years. Their presence was everywhere on shelves, on billboards you

name it! Olpers was everywhere!

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Marketing research

Before the inception of the brand Olpers, AC. Neilson carried out a marketing research

for Engro Foods to determine the viability of the brand name Olpers and the market

readiness through surveys, interviews and focus groups.1200 names were reviewed

and analyzed before Olpers was decided. Olpers is promoted as the milk for all-

purposes. The reason for this is that while conducting research, they found out that

people want milk that could be used for all purposes such as drinking, tea whiteners etc.

Once the brand was introduced the organization wanted to add more product lines to it.

Therefore they conducted another marketing research to find out the success of Olpers.

The researchers started off with secondary data that was available. They tried to

uncover the level of complexity involved in such a decision and the magnitude of

success. But that wasnt enough so they started to collect primary data through the use

of different techniques.

They first started with survey research to understand the peoples beliefs, preferences

and core needs that can be satisfied by introducing additional products. The

researchers also conducted observational research to observe the people in different

settings. They used it to find out which brand the people really bought, where did they

take more time in purchase process and where did they look when they were shopping

for grocery. This helped them to see the shelf-space that can be used. They used the

method of shadowing that is they observed people while using the product. They also

conducted unfocused groups where they interviewed a diverse set of people to explore

Idea about the brand and what more they want in the food sector to be available to

people.

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The researchers conducted questionnaires to find the responses of consumers about

Olpers. They got a positive feedback from the customers who also encouraged them to

invest further and to setup a new plant in Sahiwal. Through different research methods

the organization was also able to find out the number of competitors brands.

After the analysis of data researchers present the findings to the decision makers who

pass the final verdict. Due to the positive responses of consumers, the decision makers

decided to go ahead with the idea of introducing more product lines to the food Olpers

brand.

It can be said that successful marketing research helps the marketers to understand the

customers needs that are still unfulfilled. The four new products of Olpers in the market

are:

1. Olpers lite

2. Olpers cream

3. Tarang

4. Omore

5. Olpers milk

The organization has further plans to expand more in this sector and introduce more

products related to milk.

Segmenting and targeting the Market for Olpers

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The milk sector has a market that has homogeneous taste and demand that is the

consumers have similar preferences.

1. Milk should be clear and free from any impurities.

2. It should be carefully processed

3. Milk should be good for bones and health.

Olpers market has been segmented according to these things. Olpers marketers had a

number of options available to them when segmenting the market for their products

Demographic Segmentation

Olpers is meant for all the users in higher upper or middle class families. Olpers

products are not restricted to any particular age, gender or lifecycle stage. Lower class

wouldnt want to buy the brand maybe because they are price sensitive or because theystill believe lose milk is better than processed milk .Milk companies are trying to change

the image of processed milk as non-nutritionist milk. Therefore it can be said that

Olpers had a image as a brand for high income earners. Due to that image it can be

said that Olpers milk target a specific social class who are health conscious and

concerned about their weight.

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Psychographic Segmentation

During segmentation Olpers also focuson psychographics factors, factors such as

personality traits, lifestyles and values, Olpers marketers have segmented the market

who are goal-oriented and focused on their careers, and those who are looking variety

in the milk sector. For example the ads for Olwell ,focus on achievers who want to be

successful, have high aims and are already doing quite well in their concerned fields.

And why OLPERS have targeted variety seekers because the company has given them

a new set of brand and so, many will make their first purchase because they want to try

something new. Olpers ads also target believers, traditional conservative people withConcrete beliefs. Olpers ads show the beliefs of healthy life with processed milk and

plays on the emotional aspect more.

Behavioral Segmentation

Olpers products have been segmented on the basis of benefits that consumers seek in

the milk.Olpers ads are always based on the theme of family.Olpers milk can be used in

daily life.Olpers can be used for all purposes like tea whiteners or to feed the animals.

Olpelrs milk can use for drinkin or as a tea whitener.

Positioning the Brands

Positioning involves designing the product and image that will occupy a distinctive place

in the minds of the target market. As can be seen, Nestle Milkpak and Haleeb have the

largest profit margins and market share in the milk industry. Thus the marketers at

Olpers have decided to create its own unique image and then

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strengthen the position in the customers minds. They have done this by taking a

number of following steps:

Packaging of Olpers Milk in red colour are quite different and distinctive from the typical

green and blue packing used by other competitors.

The brand has been positioned as an all purpose milk that is meant for everyone,

especially those who live life to the fullest, hence its tag line is

jo dil khol kay jeetey hain unheen kay liyay hai Olpers

Placement and distribution

According to Mr. Fuad Chundrigarh, Director Marketing EFL,

In order to succeed, you should always capitalize on your strengths and

never on your competitors weaknesses

Engro Foods did exactly that. They used their decades of PR with farmers and used it to

provide world-class supply-chain management for delivering the ultimate quality milk in

Pakistan.

Having kicked off simultaneously in 20 cities across Pakistan, the launch has been

ambitious and currently Olpers is available in 80 cities across Pakistan. It reflects the

companys intention to become a big player in the industry, both on a national and

international level. Engro Foods Limited has its own distribution network. EFL has

divided Pakistan into five regions for milk distribution namely:

1. Karachi

2. Lahore

3. Islamabad

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4. Peshawar

5. Multan

Due to an appealing color scheme, which stands out in the clutter and thanks to the

EFLs strong relationship building and special discounts to retail outlets, Olpers has

gained a proper shelf placement in the presence of competitors like Nestle and Haleeb.

Promotion and Distribution

Promotional strategy:Olpers promotional strategies:

a. Stalls in BAZAAR

In order to encourage and attract the consumer company using the strategy, stalls in

Sunday Bazaar, Tuesday Bazaar and Friday Bazaar at different location of pakistan and

especially to those areas where the volume of sales of the Olpers is low .

b. Integrated marketing communication

In order to inform the consumer about the new, upcoming product and value added

services to the existing product company have a complete plan. The company uses

print media to inform their consumer.

c. Unique selling proposition

Olpers is a trend setter in market.The usp of Olpers is wo log jo khul k jete hai. They

provided their consumer pure milk and this the usp of nestle milkpak.

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d. Advertisements

Olpers emphasis on advertsing.they use different medias to advertise their product ,

TVCs, print ads, radio commercials, billboards and plenty of BTL (below theline)

activities including direct consumer and shop branding activities. Because of OLPERS

aggressive marketing campaign, the company gave tough completion to well

recognized brands.

e. Ramadan Campaign

Olpers celebrates the spirit of Ramadan. Olpers celebrate Ramadn with unique style,in Ramadan 2009 is the latest example for it. Every Ramadan they have has come up

with nice promotional campaign. They try to promote the patriotic spirit of Muslims all

around the world through the most popular Hum Mustafavi Heinsong that gives the

message of Peace for the whole world. The song is directed by Asim Raza advert

features Atif Aslam and Dawood Ali.And worked has done fabulously. This ad has

been shot in 5different countries I-e Pakistan, Dubai, Morocco, Brunei and Turkey. In

Olpers ads They have shown the Muslim rich heritage, culture and beautiful mosques.

Olpers association with religion and cultural heritage grows stronger each Ramadan as

their worth talking about Ramadan Campaign penetrates through the industry setting a

bench mark of gleeful trail for competitors to witness. Their rich hues of corporate color

and emphasis on cultures across the globe give more meaning and depth to the brand

as a whole. What we see today is a great project execution by TNBT (The Next Big

Thing) to take the Olper's digital campaign to the next level by going beyond traditional

online banners and simple Facebook page management.

OLPERS brand shows Islamic nations as a united faction in their ads. In Olpers ads

they try to show the principals and family values are very important. Their user friendly

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website opens up unfurling the corporate colours and takes the user for a journey of

engaging features and advertisement downloads that could be cherished as collectibles.

Similarly, the display of Sehri and Iftar timings and the integration of digital and

traditional media are worth noticing where Olpers has lked recipes on a local TV

channel and the brand enjoys good product placement.

This Islamic theme integrate in Olpers Ramadan campaign and the digitalized aspect in

its entirety have made the viral impact and positive word of mouth inevitable and thus

more of related campaigns are expected in years to come.

Now days there has been a growing trend of targeting Muslim consumers around the

world, Providing Halal food is the main target of national and international markets . ,

Islamic Marketing is the term in use and thus relevant activities increase in Ramadan.

NewYork Times also talked about OLPERS work how Olpers competing against

Nestle. NewYork Times also mentioned in his section Media and Advertising about

various international brands focusing on the Muslim market and mentioned how Olpers

has been doing its part in terms of Ramadan and how it helps in competing against

Nestle.

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HR Department of Engro

Purpose of HR DepartmentThe Human Resource department may be considered the backbone of companies. The

HR department makes sure that the company policies, visions, and values are being

followed through by the company, as well as the employees within that company. The

Human Resource department develops initiatives and provides strategic support to

management concerning Human resources policy

Main Functions of HR Department

The HR department is responsible for many every day functions. For instance, HR is

responsible for manpower planning, which is the balancing of overstaffing and

understaffing within a company. HR also deals with organizational development, or

determining the hierarchy of a companys many positions. Employment and association

conditions, recruitment, job classification and salary administration, performance

appraisal, advancement, internal mobility, training and development, and corporate

social responsibility are just many of the other responsibilities that the HR department is

responsible for.

Organization of HR department

1. Control of records:

Data on all HR related activities are generated and recorded in a meaningful

manner to provide objective evidence of quality and work done. All HR separating

manual related records are retained in good manner. HR officers maintain a list of

quality records and their retention time. These papers are important as backup

information, or if ever a need arises to determine whether or not a particular objective is

being met, if an employee is working properly based on their job descriptions, and much

more.

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2. Management commitment

HR department of EFL is committed to developing and implementing HR policies,

procedures, and continually improving their department effectiveness through

conducting management reviews, establishing HR objectives, & providing strategic

support to the management with regard to HR policies. The HR department helps keep

all of the different policies and procedures in check by overlooking all aspects of a

company, including management.

HR Objectives

HR Objectives have been developing for EFL. These specific objectives are the prime

basis for the performance evaluation of HR department. Objectives can be reviewed

any time when the needs arise. Objectives are important to keep not only the HR

department, but also the overall company on the right tracks. A planned review is

performed once a year to help ensure this.

HR Policy

It is the policy of the company to provide Human Resource services and staff

development programs responsive to the needs of the company and delivered at

highest possible standards of quality.

The HR policies are related to:

HR deals with who is hired, and how they are hired. HR also deals with an employees

benefits relating to medical and dental benefits. If employees want to travel, or to

transfer to another department, company, or position, then HR works with that

employee to the best of their abilities. Transportation allowance and company assigned

car are other aspects of a company that the HR department deals with.

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Major Functions of HR department

There are seven major functions in HR department of every company:

1. Manpower planning

This aspect deals with the responsibility of determining whether or not a company is

understaffing or overstaffing. Understaffing is dangerous because it can lead to a

smaller workforce. Overstaffing leads to insufficient funds to pay a large amount of

employees.

2. Recruitment and selection of employees

HR is responsible for analyzing job descriptions, as well as finding and hiring proper

employees for the job. HR is also responsible for interviewing people for job positions.

The interview process is highly important because this is what helps the company hire

the right person for the right job.

Employee motivation

HR is also responsible for initiating professional development and leadership workshops

that can help employees grow. These types of workshops allow for employees to better

understand one another, determine ways of improving themselves, and feel more

motivated to work in the company. A company that takes the time getting to know their

employees will in return have employees who want to better understand and work for

their company.

3. Employee evaluationThis aspect deals with assessing and evaluating the progress of an employee. This is

important because it helps a company, through the HR department, determine at what

level an employee stands, if the employee has made sufficient progress, and how help

the employee advance and succeed within the company.

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4. Organizational relations

A company can range from a few people to thousands of people, and these people are

divided throughout various departments within the company.

5. Provision of employee service

HR is responsible for delivering its policies, paperwork, and much more their

employees.

6. Employee education, training, and development.This aspect is very similar to employee motivation. An employee is a human being, and

all human beings are able to learn and advance in their field of work. There is always

room for advancement, since no human being is perfect. This is perfect for the HR

department, which is able to deliver training and education to its employees.

Job Analysis Information

Job Analysis information is the basis for several interrelated HR management activities:

1) Recruitment and Selection

This helps HR find and hire the right people for the right job.

2) Compensation

This helps HR determine what amount of money should be given to an

employee based on experience, work productivity, and much more.

3) Performance Appraisal

This helps HR appraise those employees who are able to follow and complete the

responsibilities, objectives, and goals written in their job descriptions.

4) Training

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This helps to explain both to HR and employees the type of training that can be offered

to help reach the different objectives and goals.

5) Discovering unassigned duties

Developing a description for a job can often lead to discovering other responsibilities

that a specific job could provide! For example, lets suppose an HR specialist is creating

a job description for an Assistant Manager. While creating the description, the HR

specialist realizes that the Assistant Manager position also requires good

communication skills, and so he/she writes this requirement into the job description! By

doing this, the HR department will not only find people who have good communication

skills, but they can now provide TRAINING to previous Assistant Managers within the

company to help them develop their communication skills!

Job description is also a part of Job Analysis. A job description is a written statement of

what the worker actually does, how he or she does it, and what the jobs working

conditions are. You use this information to write a job specification; this lists the

knowledge, abilities, and skills required to perform the job satisfactorily.

There is no standard format for writing a job description. However, most descriptions

contain sections that cover the following:

1- Job identification

2- Job summary

3- Responsibilities and duties

4- Standards of Performance

5 Working Conditions

6- Job specification

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Recruitment & Selection

Once a pool of candidate has been completed, the next stage is to select the best

person for the job to achieve the organizational goal. The organization gives importance

to solution process as the result of this process. The better performance of the

employees shows the better performance of organization, which can achieve its

goodwill & vice versa. Further effective screaming leads towards cost minimization.

Finally the organization gives this process importance to fulfill legal formalities also.

Applications are reviewed by the HR Department and suitable candidates are selected

for departmental consideration. Applications are necessary to also be reviewed by the

concerned department. The concerned Department and HR select those candidates

who are to be called for initial interview by HR department.

1) Calling Candidates from outside for Interview.

Before a candidate is called for interview, an estimate of expenditure involved in his

travel will be proposed for approval by the HR Manager. It will be only after the approvalhas been accorded that the candidate will be informed in writing with necessary

instructions as to the date, time and place of his interview and he will be asked to

confirm his agreement to travel expenses admissible.

2) Preliminary Interview

Candidates are screened by HR Department

Appropriate tests are administered as explained below

Results of screening and tests are shown to the Department concerned.

Candidates for further interviewing are chosen on the basis of this screening and

testing.

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3) Testing

The purpose of the testing program is to collect from the applicant such supplemental

information regarding his mental abilities, skills and competencies as it would be used

by the management, in deciding if the applicant is likely to succeed as an employee forthe organization.

4) Final Interview

Candidates are interviewed by the members of Management as nominated by the

Department Head concerned and the HR department. The Interview Rating Form (form

no. HRD-1-2) is completed by each interviewer and returned promptly to HR

Department.

5) Interviewing the Candidate

The candidate should be interviewed under such conditions that he /she is as natural

as possible and has an opportunity to exhibit his usual behavior towards people. Of

course, this is not entirely possible when he / she knows that the selection or rejection

for employment may depend in part at least upon the impression he / she creates. But

with due allowance for nervousness and perhaps anxiety an interview conducted under

the following conditions go far towards revealing the human relations aspect of the

candidate:

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This interview must be conducted in an informal atmosphere.

The interview must be conducted like a friendly discussion between the

interviewer and the candidate.

The interview must be conducted as per the industry benchmarks.

6) Medical

The purpose of the medical examination is to determine and evaluate the general health

status of the applicant as it is related to his ability to perform the job for which he isapplying. Appointment letter is issued only after the candidate has been found fit for the

job applied for.

7) Appointment

HR prepares an appointment letter. The Department Manager signs the Appointment

Letter for all employees and returns it to HR for further processing.

8) Orientation

It is the responsibility of the HR Department to acquaint the new employees with the

general HR Policies and procedures of the Company. It is the responsibility of the

Department Head to acquaint the employee with the applicable working rules at the

place of assignment and to explain in full detail to the employee his place and duties in

the overall Company organization.

9) Replies to the other Candidates

All other candidates who were called either for initial interviews or any other interviews

are sent replies by the HR department thanking them for their cooperation and telling

them that the position has been filled.

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.

Orientation by Department

After the selection the head of Dept itself give the orientation to his sub-ordinates. He

gives an overview of organization culture, but the duties & responsibilities of new

employees in detail. First 2-3 days there is a not much/fully responsibility on the

employee.

For the fresh employee (having no experience) there is 3 to 6 month training period.

After it they are fully responsible for their duties.

For existing employees, there is continuous On Job Training by the supervisor

and Head of Dept. they are prepared as inside supply of candidates for an upper

level vacant post in future expected.

Orientation provides the information about the followings:

1. Organizations Culture

The entire employees are introduced with organizations culture. Organizations values,

norms and beliefs are discussed in detail. Employees are introduced with Engro Foods

image and its reputation in all over the world and the customs and traditions are

explained to the employees.

2. Employees Introduction

All the employees are introduced with other employees and their supervisors so they

can know each other. The purpose of this practice is that, if employees know each other

and they feel good to work with each other then definitely they will perform well and with

ease. Companys policies, rules and regulations, benefits, working hours, performance

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reviews, payroll system, vacation information, working conditions these types of issues

are discussed in this content of the orientation.

3. Contingency Training

In this content employees are introduced certain contingent situations in which they

have to respond immediately, like fire drill, safety issues, theft, robbery, to handle

disputes among the customers. Employees are taught about precautionary measures,

they should take during these critical situations. Engro food considers it very important

to discuss these sensitive and crucial matters on the very first day because these issues

can happen at any time and employees must know how to handle these situations in

advance, thats why first orientation session is taken very seriously. This training

session forms a base for all future training programs.

4. Follow-Up Orientation

Follow-up orientation is conducted after the 30 days of first orientation. This orientation

is also a 45 minutes session having following contents:

Performance & Management

As it is obvious that performance appraisal is very important tool for evaluating the

performance so in Engro Foods it is conducted in a very careful manner.

Immediate Supervisor: The Responsible Person

For this purpose the person or official who is in direct contact with employees and to

whom the employees are under reservations is selected to assign the duty of appraisingthe performance.

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The administrative manger, unit head, for example, General Manger also make surprise

visit. Moreover the immediate boss makes the performance appraisal in a very concise,

precise and systematic way as given below.

Defining the Job Properly

In order to avoid future problems the supervisors clarify from all aspects to employees

what the performance level is expected from them and what would be the standard for

their performance appraisal. Then in the light of definition of job performance appraisal

is made.

Feed Back

As without feedback performance appraisal remains fruitless. The keeping in mind

performance appraisal, discussion and feedback session are held time-to-time for

solving the problems.

Appraisal methods adopted by the Engro Foods

In order to get better results Engro Foods uses the combination of several methods andthis technique is very successful in their organization. The most important method by

them is:

The MBO method

Critical Incident Method

Behaviorally Anchored Routing Sale.

NOTE: In Engro Foods performance appraisal is not limited up to formulation just.

Rather based upon a reward system that is established for satisfaction providing

appraisal as:

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Special increment

Promotions

Career Planning and Management

The company consistently monitors its employees and as far as the betterment of their

career is concern, the company has a proper strategic plan through which it increases

the skill level of its employees. The company offers training courses which focuses on

injecting skills and professionalism into employees. These courses held in theorganization or outside organization and even abroad depending upon the course

requirements. Regardless of the location of these training programs, the company pays

all the expenses. The only focus is to improve the skills of their employees so that not

only company can get maximum out of them but also employees can enrich their nature

of job and life standard as well.

Along with these training programs, the company make their employees fully aware of

their job requirements so that they can develop a clear picture about at what they aregood and bad. Indirectly the promotions also play a key role in employees job

satisfaction.

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36

BALANCE SHEAT

as at december 31, 2011

amounts in thousands

2011 2010

Assets

Non current assets

Prperty, plant, equipment 9,615,426 148,219

Long term investment 980,000

biological assets 496,809 428,293

Intangible assets 133,598 142,433

Long term advances 24,212 23,126

10,270,045 8,722,071

Current assets

stores, spares and loos tools 571,812 441,841

Stock in trades 2,637,816 2,089,221

Trade debts 87,121 51,879

Advances, deposits & prepayments 266,093 244,209

other recievables 1,160,126 720,735

Taxes recoverable 1,443 9,417

Derivative financial instruments 510

Short term investments 1,294,000

cash & bank balance 350,728 180,181

6,369,139 3,737,993

Total assets 16,639,184 12,460,064

Equity & liabilites

Equity

Share capital 7,517,889 7,000,000

Share premium 722,181

Hedging reserves -18,878 331

accumulated loss -984,954 1,875,924

Non- Cuurent liabilites

Long term finance 5,610,000 4,625,000


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FINANCAIL ANALYSIS

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PROFIT AND LOSS ACCOUNT

as at december 31, 2011

amounts in '000'

2011 2010.00

Net sales 29,859,226 20,944,943

Cost of sales -23,230,345 -16,552,117

Gross profit 6,628,781 4,392,826

Distribution & marketing expenses -3,716,489 -2,913,448

Adminstrative expenses 504,722 473,198

Operating expences -228,902 -131,460

Operting income 213,133 54,142

Operating profit 2,411,801 929,662

Finance costs -1,049,141 -659,652

Profit before taxation 1,362,660 270,100

taxation -471,786 -94,878

Profit for the year 890,973 175,622

Earning per Share 1,22 0,31

HORIZONTAL AND VERTICAL ANALYSIS OF PROFIT & LOSSACCOUNT

Horizontal analysis 2011 11 VS 10 2010 10 VS 9

Rs % Rs %

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Sales 29,859 42.6 20,945 42.8

Cost of sales 23,230 40.3 16,552 38.5

Gross profit 6,629 51.9 4,393 61.7

Distribution & marketing

expenses

3,716 27.6 2,913 10.3

Adminstrative expenses 505 6.8 473 36.3

Other expences 209 58.3 132 187

Other income 213 287.7 55 -68.8

Operating profit & loss 2,412 159.4 930 -760.6

Finance Cost 1,040 59 660 28

Net profit before taxation 1,363 404.1 270 141.2

Provision for taxation -472 399.6 -94 -142.4

Net profit after taxation 891 406.5 176 140.6

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Vertical analysis 2011 2010

Rs % Rs %

Sales 29,859 100 20,945 100

Cost of sales 23,230 77.8 16,552 79

Gross profit 6,629 22.2 4,393 21

Distribution & marketing

expenses

3,716 12.4 2,913 13.9

Adminstrative expenses 505 1.7 473 2.3

Other expences 209 0.7 132 0.6

Other income 213 0.7 55 0.3

Operating profit & loss 2,412 8.1 930 4.4

Finance Cost 1,040 3.5 660 3.3

Net profit before taxation 1,363 4.6 270 1.3

Provision for taxation -472 -1.6 -94 0.5

Net profit after taxation 891 3 176 0.8

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HORIZONTAL AND VERTICAL ANALYSIS OF BALANCE

SHEAT

Horizontal analysis 2011 11 VS 10 2010 10 VS 9

Rs % Rs %

Equity & liabilities

Equity

Share capital 7,518 7.4 7,000 29.1

Share premium 722 100Hedging reserves -18 100

accumulated loss -985 47.5 -1,876 -8.6

7,237 41.2 5,124 52.6


Long term finance 5,610 21.3 4,625 39.1

Obligations 1 -80 5 -37.5

Deferred taxation 308 70.2 181 39.9

Deferred liabilites 2 -33.3 3

5,921 23 4,814 32.4

Current liabilites

Current long term finance 465 133 200 70.9

current obligation 4 4 -20

Trade & other payables 2,344 14.8 2,041 29

Derivative financial

instruments

28

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Accrued interest

_ Long term finance 368 33.8 275 50.3

_ short term finance 20 900 2

Short term finances 252 -100

3,481 38 2,522 28.3

Total equity & liabilites 16,639 33.5 12,460 38.4

Assets

Non current assets

Prperty, plant, equipment 9,615 34.5 7,148 23.1

Long term investment -100 980 540.5

biological assets 497 16 428 -2.2

Intangible assets 134 -5.9 142 408.7

Long term advances 24 3.8 23 194.8

Deferred taxation

10,270 17.7 8,722 35.5

Current assets

stores, spares and loos tools 572 29.4 442 52.4

Stock in trades 2,638 26.3 2,089 79.5

Trade debts 87 67.3 52 108

Advances, deposits &

prepayments

266 9 244 -28

other recievables 1 60.9 721 26

Taxes recoverable -88.9 9 -71

Derivative financial

instruments

-100 1 100

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Short term investments 1,294

cash & bank balance 351 95 180 21.6

6,669 70.4 3,738 45.5

TOTAL ASSETS 16,639 33.5 12,460 38.4

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vertical analysis of balance sheat

2011 2010

Rs % Rs %

Equity & liabilites

Equity

Share capital 7,518 45.2 7,000 56.2

Share premium 722 4.3

Hedging reserves -18 -0.1

accumulated loss -985 -5.9 -1,876 -15.1

7,237 43.5 5,124 41.1


Long term finance 5,610 33.7 4,626 37.1

Obligations 1 5

Deferred taxation 308 1.9 181 1.5

Deferred liabilites 2 3

5,921 35.6 4,814 38.6

Current liabilites

Current long term finance 465 2.8 200 1.6

current obligation 4 4 0

Trade & other payables 2,344 14.1 2041 16.4Derivative financial instruments 28 0.2

Accrued interest

_ Long term finance 368 2.2 275 2.2

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_ short term finance 20 0.1 2

Short term finances 252 1.5

3,481 20.9 2,522 20.2

Total equity & finance 16,639 100 12,460 100

Assets

Non current assets

Prperty, plant, equipment 9,615 57.8 7,148 57.4

Long term investment 980 7.9

biological assets 497 3 428 3.4

Intangible assets 134 0.8 142 1.1

Long term advances 24 0.1 23 0.2

Deferred taxation

10,270 61.7 8,722 70

stores, spares and loos tools 572 3.4 442 3.6

Stock in trades 2,638 15.9 2,089 16.8Trade debts 87 0.5 52 0.4

Advances, deposits &

prepayments

266 1.6 244 2

other recievables 1,160 7 721 5.8

Taxes recoverable 1 9 0.1

Derivative financial instruments 1

Short term investments 1294 7.8

cash & bank balance 351 2.1 180 1.5

6,369 38.3 3,738 30

Total assets 16,639 100 12,460 100

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Financial statement analysis

46

Financial Analysis

(Rs m n) 2010A 2011E

Income statement

Net Sales 20,945 31,282

COGS 16,552 24,381

Gross profit 4,393 6,900

Operating profit 930 1,930

EBITDA 1,630 2,717

Finical Charges 660 789

PBT 270 1,141

Tax 94 399

PAT 176 742

Balance Sheet

Share holder Equity 5,124 3,216

Non Current Liabilities 4,814 5,607

Current Liabilities 2,522 5,740

Total Liabilities & Equity 12,460 19,563

Non Current Assets 8,722 15,075

Total Current Assets 3,738 4,488

Total Assets 12460 19563


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47

Ratio Analysis Valuation

Earnings per Share 0.2 0.1

Book value per share 6.9 11.0Price of earning ratio(x) NM 25.2

Price of book value(x) 3.6 2.3

Price of Sales(x) 0.9 0.6

Profitability

Gross margin 21% 22%

Operating margin 4% 6%

Pretax margin 1% 4%

Net margin 1% 2%

Solvency

Total debt to total assets 0.4 0.3

Total debt to equity 0.9 0.8

long term debt to equity 0.9 0.7

Interest Cover 1.4 2.4

ROE 3% 9%

ROA 1% 4%

Momentum

Sales growth 43% 49%

Net profit growth NM 322%


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SWOT Analysis

Strengths

a) Engros Back

Engro has a great brand recognition all over the world. It has a big brand image in

Fertilizers, IT and Infrastructure business. Thats why the main product of Engro foods

Olpers can be recognized by foreigners and also it can be backed up by foreign

investors rather than Nestle. It makes its distributing channel strong.

b) Better Relations with suppliers

The main benefit to Engro Foods is its good reputation among farmers due to fertilizers

which has created a long term relation between farmers and organization. Now Engro

has the advantage of its long term interaction with farmers that they can easily buy milk,

also they have mad centres for milk collection. And also farmers wont have to look

anywhere else to sell the milk.

c) Positive Feedback from Customers

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EFL had a big success in the very first year, it crossed 1.4 Billion sales, which showed

the consumers belief and satisfaction with EFLs products, for its good taste and quality

proposition.

d) Strong consumer & product research

A strong consumer & product research was conducted before and after launching theOlpers. This has provided Engro 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.

e) Third-Generation Plant

Only EFL, has the third-generation UHT milk plant in the country. EFL plant is the only

plant in Pakistan that uses Bactofuge technology to eliminate bacteria and ensure

premium quality and hygiene. Moreover, it has also set up another milk processing plant

in Central Punjab (Sahiwal) with an investment of Rs. 2 billion (US $ 33 million).

1. Worldwide fame of Engro.

2. Efficient milk collection system.

3. Keeping high quality standards.

4. Integrated distribution and warehousing facilities.

5. Successful related diversification.

6. Generic brand name of Olpers

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7. Large market share of Engro innovative and chemicals.

8. Having Good reputation in the market by strong brand name i.e. Engro

Weaknesses

a) Not 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 agrocery shop, then he/she might have problems in recalling the brand because there is

no color association attached to Olpers. The company may need to find a suitable color

in which to focus its upcoming marketing strategies.

b) Low Quality Milk

Engro Foods Ltd dont have there own milk centres. They collect loose milk from

local gawalas and farmers. Which is the reason that the quality of milk is not that

good, it also have sometimes times vegetable oil and impurities add in it.

c) Monopoly of Tetra Pack

Tetra packs is the only packaging company in Pakistan. Engro is using Tetra Pack for

almost all their dairy products. So Tetra Pack being in monopoly can charge them at

whatever rate they want.

d) Milk collection & distribution costs

EFLs 34 out of 40 milk-collection centers are located in Punjab, where as its milk

processing facility is situated near Sukkur (Sindh) and Sahiwal. It increases the milk

collection & distribution costs; and also increases the chances of milk getting spoiled

because of increased traveling time.

e) Narrow Product line

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On March 20, 2006 when EFL launched its first dairy product, Olpers Milk. EFLs brandl

consists of just 3dairy products i.e. Olpers Milk, Olpers lite and Olpers Cream. But

EFLs competitors Nestle and Haleeb Foods have a diversified line of dairy products.

Opportunities

a) Increased funding by Government

Government has decided to help the farmers by increasing their funding. This is also

help ENGRO foods because of bad weather conditions and some other reasons there

was lots of wastage of milk but now farmers will be able to overcome their loss by

storing milk for longer time periods.

b) Increased consumption of PLM

Competition may create opportunities for the company because each competitor in the

milk industry wants to increase penetration of processed liquid milk and so they will

create awareness for consumers through different advertising media. This will ensure

the increase in the consumption of processed milk instead of lose milk and so will in turn

lead to increase in sales for the company. Therefore there will be an opportunity for

accelerated growth.

c) Awareness

High awareness about health and hygiene issues helps the milk industry to increase

their product by Growing dissatisfaction with loose milk and increased processed milk

consumption.

d) Third largest producer of milk

In the world Third largest producer of milk is Pakistan, total production of 32 billion liter

of milk a year, which is more valuable than that of the value of wheat and cotton, from a

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total herd size of 50 million milch animals (buffaloes and cows).Milk is covering 51

percent of the total value of the sector.Milk production is expected to grow at an

additional 3 billion liters in the next few years because government and private sector

taking some steps for the betterment of milk industry. This is good opportunity for Engro

foods as there is lot of growth in this part of the sector.

1. Improving Economy

2. Population growth rate.

3. High urbanization rate.

4. High literacy rate.

5. Flexible government policies for food industry.

6. Have significant growth opportunities

7. Has sufficient capital to expand.

8. Has the potential to innovate and differentiate the company's products to sustain

competitive advantage

9. May merge with other global businesses to eliminate competitors.

10.Having Capable of expanding into other markets of the world

Threats

a. Competition

Competition is always a threatso the company try to keep a grip on their market share

and maintain its leadership in an expanding market. Sometimes it is difficult For Olpers

to stable in a market where the loyalties exist for such brands as Nestle and Haleeb.

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Such brands captured the milk industry for a long time and have a strong position in a

minds of consumers.

b. Perceptions and Price Differentials

Sometimes Consumers perceptions about price can cause a threat for the company. To

meet the companys promised specifications it is important that Olpers comes up to the

expectations of the customers and fulfills its conformance quality.Change in the taste

and preference of consumer with time and prices might create threat of the profit

margins for Olpers. For example,people still buy lose milk instead of packaged milk

because lose milk is cheaper. To eliminate Engro foods olpers the competitors may

develop some marketing strategies. Because of this there may be an economic

downturn in the business cycle.

1. High inflation rate.

2. Low purchasing power.

3. Decrease in GDP growth rate.

4. Increasing interest rates.

5. Decreasing investment.

6. Recessionary period in business cycle

7. Competition with Nestle, Engro Foods and the new entrants.

8. Engro foods are currently facing an increase in Sales Tax.

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PEST Analysis

A. Political factors

There are no specific government rules and regulations but because of unstable

political conditions, strikes and road blocking is creating problems for delivery on

time.

B. Economical factors

Inflation rate of Pakistan for the current fiscal year has grown to 7%.so, the

purchasing power of the customers is decrease. packaged milk industry which is

already considered as more costly compared to open milk .As a result there is

increased pressure on the companies to either decrease their prices or at least keep

prices stable

C.Social factors

In Pakistan the norm is to get up in the morning and get fresh milk from doodh wala.

Mostly people considered that milk is healthy for them. This will require a lot of time

and patience because most of the people are not willing to spend additional amount

of money on packaged milk when they are convinced that it has a lot of

preservatives and is unhealthy

D.Technological factors

Milk yields per animal have been increased through scientific feeding & breeding

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Our project is to establish farms. First 14 farms in Okara, Punjab have been formally

established as model farms

Currently, most equipment for storage and processing is being imported from

Western countries.

My learning experience during Internship Program

Engro Foods is known for its internship programs which actually inspired me to go for it

and learn new things. Internship programs are basically designed to give a practical

exposure to the students of what they have studied in their class rooms and books. The

experience by itself was a pleasant surprise which was full of learning, meeting new

people and understanding corporate culture. Throughout the course of my internship I

was encouraged and guided by my supervisory staff. There professional handling and

trust made me to excel for continuous improvement and simultaneously gave me the

confidence to accomplish my projects as a winner.

The objective and can-do attitude that I developed working on stretched and tedious

projects helped me to convert my opportunities into strengths. It can also be termed asa period of self-discovery where it was revealed that how far I can go, an estimate that I

have been revising to this day because of the new spirited attitude towards life.

Engro Foods stands as a company having its own culture, professionalism and strong

ethics. Equity and mutual respect are the core values which I greatly loved. The

company offers a very well-defined and structured internship program providing great

opportunities of learning. My experience as an internee with Engro Foods can be

summarized to be very befitting, fruitful and useful.

During the internship I was assigned with a project on T.I.S. It is a software EFL

developed the year to maintain the data of their permanent employees, such as:

Attendance, Leaves record, their personal information, their payroll and their other

bonuses and incentives etc. My project was to maintain the leaves record of the

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employees and their payroll. This took 4 weeks to complete this task. The leaves were

from june 1st till the date going. The learning through this project was the working on

Excel Sheet.

The next 4 week was mostly spent to maintain the record of organization daily and

monthly expenses.

I also helped my fellow internee who was working in accounts department. I helped her

in her task by managing the accounts of the employees, also I helped another internee

in making roasters, which is actually assigning the workers their shifts, i.e. There are

four of shifts in EFL:

General (9 am to 5 pm)

Morning (7 am to 3 pm)

Evening (3 pm to 11 pm)

Night (11 pm to 7 am)

I worked on DES (Daily Expense sheet). This is a sheet that employees use in order to

claim for some specified expenses such as mobile, travelling expenses. Firstly I verified

the amounts and bills that are attached to the sheets and then I put their data in SAP.

I also came to know about the working of R&D department. They are operating a

laboratory in which tasting of their products is done which confirms the productions ofthat specification product.

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Suggestions and Recommendations

Following are the suggestions and recommendations for EFL:

The co-ordination between different departments of EFL should be improved it

will lessen the bureaucratic cost and increase the efficiency of the company.

The activities like customer satisfaction day should be performed on regular

basis so the company should know the feedback and satisfaction level of

customers regarding the product and the image of the company.

EFL has shifted to branding concept but it really has not adopted it fully, for

smoother working of the different brands, the sales teams should merged with

respective brand management.

There is no check on the performance of the distributor, and this has led to huge

problems in the delivery of many products in some areas of the city.

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They should also start to manufacture powder milk in order to meet the domestic

demand and so that it can be helpful in saving the foreign exchange that is

expensed in importing the powder milk from foreign countries.

The company should explore the market potential in a way, so that it can utilize

its full capacity in order to gain economies of scale in the production.

At the moment the company is using focus marketing approach that only that

segment is approached which highly attractive for the company but it should also

develop the marketing program that distinguishes the characteristics of existing

available substitutes to their highly quality & hygiene oriented product.

The company should also develop an integrated awareness plan in order to

aware the people about the quality of the UHT milk as compared to other

pasteurized or loose/fresh milk.

zahida engro (1)

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