Engro Foods

STRATEGIC MANAGEMENT
Case study on engro foods
Sana Ishtiaq
F18 3111
Presented to:
Prof. Dr Syed Aziz Haider
engro foods
SEQUENCES
1. Introduction 7. Business strategy
2. History 8. SWOT Analysis
3. Business Description and competitors 9. Five forces model
4. Vision, Mission and Values 10. Supply chain management
5. Cooperate strategy 11. Key Success factor
6. Competitive strategy
HISTORY
 Founding Days:
It was 1957 when in search for oil by Pak Stanvac, an Esso/Mobil joint venture led to the
discovery of the Mari Gas field near Daharki Pakistan. Esso proposed the establishment of a
urea plant in that area which led to a fertilizer plant agreement signed in 1964.
 Esso to Exxon Limited:
In 1978, it was decided to rename the company from Esso Fertilizer Company
Limited to Exxon Chemical Pakistan Limited. In 1991, Exxon decided to divest its
fertilizer business on a global basis. Then it is renamed as Engro Chemical Pakistan Limited.
 As Engro Chemicals (further expansions):
It was year 1997 when Engro Chemical Pakistan limited decided to establish Engro Vopak
Terminal Limited on 50/50 partnership basis between Engro and Royal Vopack
of Netherlands
 Recent History:
Engro company was established in 2003, after which in 2005 Engro decided to diversify
their business more by venturing into the food business by establishing Engro Foods
Limited.
INTRODUCTION
 Engro Corporation is a Pakistani
multinational corporation based in
Karachi.
 It is one of Pakistan's most progressive,
growth oriented organizations in
Pakistan.
 The subsidiaries involved in production
of fertilizers, foods, chemicals, energy
and petrochemicals.
 It was established in 2003.
INTRODUCTION
engro foods
 Engro Foods Limited (EFL) is a company built
from the fabric of Pakistan, it was driven
with a vision to cater to local needs with
products conforming to global food safety
standards.
 It was formed in 2005.
 It’s headquarter is in Karachi.
INTRODUCTION
 Engro Foods is the 2nd largest dairy company of
Pakistan.
 In December 2016 EFL became a subsidiary of
Friesland Campina that acquire 51% shares of
Engro foods.
 Friesland Campina is the 6th largest dairy
cooperative in the world.
 Friesland Campina is a cooperative which is
owned by 19,000 dairy farmers.
INTRODUCTION
Revenue
INTRODUCTION
Engro foods at Glance
 Slogans:
 Better nutrition for Pakistan
 Good living for our farmers
 Now & for generations to come
INTRODUCTION
Company Overview
 Parent Company: Dawood Group
 Engro food formed in 2005
 Become subsidiary company of Friesland
Campania in December 2016.
 Engro foods plays major role in food
industry.
 It has multiple products like: Ice cream,
Flavored Milk, Flavored Juices, Milk
powder.
BUSINESS DESCRIPTION
Products: Brands:
Milk Powder Olper’s full cream milk
Ice-cream Olper’s lite
Flavored Milk Dairy Omung
Flavored Juice Tarang (Tea whitener)
Frozen dessert Omore
Olper’s cream
Olper’s Tarka
Olper’s Dobala
Business Competitors
Vision
We will create more value for
the shareholders, now and for
generations to come, through a
distinguishing & progressive
chain approach that is market-
oriented.
Mission:
Safer, healthier, happier, more

prosperous lives for Pakistanis.
Slogan:
Now and for generations to come.
Strategies:
Cooperate
level strategy
Business
level strategy
Functional
level strategy
Cooperate Level Strategy:
Engro Foods is

horizontally integrated
itself and increase its
number of products.
At this time company has
a lot number of products
in the market.
Functional level strategy
Marketing strategy
Financial strategy
HRM strategy
Business Level Strategy
Engro Foods wants to achieve more

market share than other
competitors. In order to achieve the
more competitive advantage
company uses the differential
strategy by differentiate its products
from other competitors. Engro Foods
differentiate itself in the form of
taste, quality and availability of
their product in the market.
SWOT Analysis
Strength:
 Good relationship with
farmers.
 Positive response from
customers.
 Strong consumer and product
research.
 Variety of quality products.
SWOT Analysis
Weakness:
 Engro food is not having it’s own dairy
forms.
 Company gets milk from farmers.
 Engro foods totally depends on the
Tetra Packs for the packing of their
entire dairy products.
 Engro foods have 34 out of 40 milk
collection centers are located in
punjab, whereas its only milk processing
facility is situated near sukkhur(Sindh).
SWOT Analysis
 Opportunity
 Increases in funding by government.
 Increased in consumption of PM
(processed milk)
 3rd Largest Milk Producing Country.
 250,000 dairy farmers across Pakistan
supply them fresh milk.
SWOT Analysis
 Threats
 Competitors companies
 Perceptions and Price Differential.
 Promotion style of competitors.
 Shortage of milk providing animals.
Five forces model
Potential
new
entrains
Rivalry
among
Power of existing Power of
suppliers buyers
competitors
Threats of
substitute
products
and services
Five forces Model:
 Rivalry among existing competitors:

 As the difference between one food company and the other is not that
great so in such a scenario the company who will have better cost
structure, efficient operations & minimum cost will be able to attract the
customers towards it and can grab the market.
Five forces model
 Protentional new entrains:

• Cost and capital.
• Specialist knowledge. Potential new
• Technology protection entrains
• New idea.
Five forces Model
 Power of supplier:
Suppliers also do affect an industry by increasing the prices of their supplies or
by decreasing the quality of the products they are supplying, but in food industry
the bargaining power of suppliers is not that great due to the following reason:
Number of suppliers:
 As milk is a standard commodity so is easily available from number of
suppliers like milkmen &farmers. So suppliers are not the big issue for the
companies currently available in the food industry. As number of suppliers are
available & those are willing to sale their milk.
 Importance of Volume to the Supplier:
 Suppliers also have less capacity to bargain as they also have to sale their
milk and they are also looking someone to purchase. And another reason is
that the company is buying in bulk purchase
Five forces model:
 Power of buyers:
An individual buyer can’t effect the industry while large no. of buyer have more
power with the industry. There are large no. of milk supplier in the market so
there is less bargaining power of buyer.
Five forces Model
 Threat of substitute
Threat of substitute is always there in the food industry. Companies usually
focus on niche area in which they have competitive advantage.in food industry
there is more competition in the food industry so, threat of substitute in food
industry is more.
Supply Chain
Management
at engro foods
Supply chain at engro foods.
Storag
Raw e
Requiremen material Transportatio Process
t defined procuremen n
t
Distribution Warehousing
Key success
factor at
engro foods
Key success factor at engro foods
 Research & Development

 Financial Position
 Market Share
 Product Quality
 Price Competitiveness
 Management
 Global Expansion
 Customer service
 Network Sales And Distribution
 Production Capacity
Thank-You


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STRATEGIC MANAGEMENT

Case study on engro foods

2. History 8. SWOT Analysis

3. Business Description and competitors 9. Five forces model

4. Vision, Mission and Values 10. Supply chain management

5. Cooperate strategy 11. Key Success factor

Safer, healthier, happier, more

Engro Foods wants to achieve more

 Rivalry among existing competitors:

 Protentional new entrains:

 Research & Development

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