Competitive rivalry within the Industry:
A problem could arise because it is based on past information and events collected within past environmental conditions PEST is only a starting point Swot analysis of engro fertilizer strategic analysis, and has its limitations; other factors need to be considered when stressing the need to test the results and findings against the reality.
The company was incorporated in as a private limited company.
FFCL started production of urea on a commercial basis inwith annual capacity ofmetric tons. The production capacity of the existing plant increased tometric tons through De-Bottle Necking program.
Production capacity was further enhanced in by establishing a second plant with an annual capacity ofmetric tons of urea. FFCL has a strong dealer network all over country that helps availability even in far-flung areas.
Lengthy organisational hierarchy Sales force faced a tough time when being moved to distant areas in other provinces to ensure they were spread equally. This also contributed to high transportation costs for the company.
Opportunities Urea demand is expected to remain buoyant on the back of improved farmer economics and seed varieties.
The off-take is forecast to remain above industry capacity even after upcoming expansions due by mid Increased support prices of crops like wheat sugar etc.
Geo TV, Domestic fertiliser demand is going to be strong in the coming cropping season due to higher farm income from recently harvested crops. Economic survey of Pakistan, Having a strong financial position company can start production of the new product line.
The government is going focus on the agriculture sector due to its major contribution towards GDP, and important issues like soil conservation, farm mechanisation, land reclamation and plant protection.
Pakistan assistance strategy report, Threats The manufacturing costs pertaining to the fertiliser industry were impacted by inflationary factors, combined with escalations in the prices of feed and fuel gas The Dawn, Shortages of natural gas in the country can limit the opportunities for the company in future The Financial Daily, New competitors in the industry like Fatima Fertiliser Company can reduce the market share of FFCL The Nation, PEST analysis Political To fulfill local demand for fertilisers at affordable prices, the Government is providing subsidy on the production and import of fertilisers.
Import by manufacturers of Rock Phosphate and Phosphorous of fertiliser free of customs duty.
Federal Board of Revenue, Economical Tax relaxation has been offered in order to attract new entrants andto reduce the dependence on imported fertilisers by enhancing the local production capacity. The Government is providing a subsidy on the production and import of fertilisers. A massive subsidy of Rs.
Zee News, Ban on the export of fertiliser is also imposed for the economic stability. Social Although the adverse effects of this industry is very high because of the improper handling of the waste.
Due to this, many diseases like asthma, kidney diseases, hepatitis etc are caused. Still, the usage of the fertilisers cannot be stopped because it gives farmers so much ease in terms of saving time and actuallyusing it.
Technological In order to meet the expectation of fertilisers in the country, a strong technological base is required in the planning and development of specific engineering and expertise in project management and execution. The fertiliser industry is also carrying out several schemes, including energy saving and de-bottlenecking in their current plants to improve the capacity and reduce the energy consumption per ton of product.
Conclusion FFCL is a growth-oriented leading fertiliser company in Pakistan with highest market share and its focus is to deliver performance through excellence in the fertiliser industry by utilising its strengths. By using them wisely the company wants to maximise returns to its shareholders and provide optimum value to all stakeholders.
There are some weaknesses, like lengthy hierarchy, that can create administrative problems. Through exploring the opportunities, the company is trying to sustain production through the application of innovative technology to obtain maximum productivity in the presence of curtailment of gas by the government for longer periods.
However, FFCL also takes measures to mitigate the threats that it faces. However, due to a shortage of gas in the country and new urea plants, further expansion and growth opportunities for the company are limited in the production of urea.
After analysing the political, economic, social and technological factors it can be concluded that the external environment of the country is highly compatible with growth in the fertiliser sector. There are some fears but the strong performance of FFCL along with other companies in the fertiliser sector is expected to continue in view of rising DAP and urea prices, along with substantially higher demand for fertilisers from the agricultural sector.
By providing good quality fertilisers and services to its customers and by having the passion to excel, take on new challenges, set fresh goals and take initiatives for development of profitable business ventures, FFCL is committed to play its vital role in industrial and agricultural advancement in Pakistan.Engro Chemical Pakistan Limited - Company Profile & SWOT Analysis, is a source of comprehensive company data and information.
The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a ˚ view of the company. The PEST analysis of current trends in marketing seems to be favouring the overall industry whereas in reality due to shortfall of basic raw material gas Government is unable to provide the necessary facilities for maintaining optimal production of fertilizer in .
What is a SWOT Analysis? It is a way of evaluating the strengths, weaknesses, opportunities, and threats that affect something. See WikiWealth's SWOT tutorial for help. SWOT Analysis: Starbucks Melissa Moore BUS Strategic Management and Business Policy Bradley Simon April 22, SWOT Analysis: Starbucks SWOT is an analysis of a company’s strengths, weaknesses, opportunities, and threats.
This gives a company an idea of things that are working for them as well as areas of opportunity. Engro Fertilizers Limited is a whol ly owned subsidiary of Engro Corporation and a renowned name in Pakistan’s fertilizer industry.
Engro holds a v ast, nationwide p roduction and marketing. PEST Analysis Of Engro Fertilizers, Pakistan Hassan Shahid Forman Christian College (A Chartered University), Lahore, Pakistan (PEST Analysis Overview, n.d.).
Engro Fertilizers Limited is a wholly owned subsidiary of Engro Corporation and a renowned name in Pakistan’s Engro’s fertilizer manufacturing facility at Daharki has been.