This document provides a strategic management analysis report on Engro Foods Limited submitted to Ma'am Sadia Parveen. It includes an overview of Engro Foods, its history, vision, mission, core values, facts and strategic objectives. It also analyzes Engro Foods' brand portfolio, income statement, balance sheet, Porter's Five Forces model, SWOT analysis, EFE matrix, IFE matrix, CPM, Space matrix, BCG matrix, IE matrix and QSPM. It concludes with the company's organizational structure and recommendations.

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RReeppoorrtt OOnn::
SSTTRRAATTEEGGIICC MMAANNAAGGEEMMEENNTT AANNAALLYYSSIISS OOFF
Engro Foods Limited
SSuubbmmiitttteedd ttoo::
MMaa’’aamm SSaaddiiaa PPaarrvveeeenn
Federal Urdu University (Abdul Haq)
Department of Commerce
SSuubbmmiitttteedd bbyy::
Abdul Latif (1204101)
Muhammad Waseem (1204136)
Syed Tufail Haider (1204177)
DDaatteedd::
November 05, 2015

3. 3 | P a g e

4. 4 | P a g e
AAcckknnoowwlleeddggeemmeenntt
“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 “Ma’am Sadia Parveen” 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 her 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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TTAABBLLEE OOFF CCOONNTTEENNTTSS
S.NO Topics Page No
1 An Overview 06
2 Introduction & history 07
3 Vision, Mission & Core Values 08
4 Facts & Figure Strategic objectives 09
5 Brand Portfolio 10
6 Income Statement & Balance Sheet 11-13
7 Porters Five Forces Model 14-16
8 SWOT Analysis 17-20
9 EFE & IFE Matrix 21
10 CPM 22
11 Space Matrix 23-25
12 BCG Matrix 26
13 IE Matrix 27
14 QSPM 28-30
15 Organization Structure 31
16 Suggestions & Recommendation 32
17 References 33

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AANN OOVVEERRVVIIEEWW
This is the project about Strategic Management analysis of a company. In this regard
the company which we chosen to be analyzed areENGRO FOODS LIMITED. 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 is the 1st company
which is using Bactofuge technology. The company has not been in this business for
as long as NESTLÉ 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 stockholder’s but also to its employees. It offers its employees much outdoor
training so that they can work in a healthy environment and don’t get tired of their
hectic routine. That is why it has many loyal employees to work with..

7. 7 | P a g e
IInnttrroodduuccttiioonn::
Engro Foods Limited was officially launched as a fully owned subsidiary of
EngroCorporationin2004.Using dairy as a stepping stone to enter into the food business,
the Company has establishedstate-of-the-art processing units in Sukkur and Sahiwal, along
with an ice cream productionfacility in Sahiwal. Top quality brands like Olpers, Olpers Lite,
Tarang, Omore and Olpers Cream have beensuccessfully launched under the helm of
Company’s dairy products. To support these brandsand their highest standards of quality,
Engro Foods has invested heavily in milk processing andmilk collection infrastructure.
Engro Foods has also venture beyond the dairy sector. In thispursuit, grain and fruit
markets have been analyzed in great detail. Engrohas launched its newbrand in fruit juices
called as Y-frooter. EngroFoods’ purposeis to “EElleevvaattee CCoonnssuummeerrss’’ DDeelliigghhtt WWoorrllddwwiiddee” and
the Company aims to generate a significant portion of its revenuefrom foreign operations.
HHiissttoorryy::
Engro Foods Pvt. Limited (EFL) has beenestablished in 2005 as part of a diversification
process attheEngro Group. The plant located at Sukkur on 23acre land, has the raw milk
reception capability of more than 300,000liters per day and UHT milk capacity of more than
200,000liters perday. The plant has been established at a cost of Rs. 1billion which provides
direct employment to 750people.Engro Foods has entered the Food businessthrough milk
processing and sale with the company’s vision to pursue growth opportunitiesbased on
country fundamentals and own strength. It also positions the company to leverage
itscorporatesocial responsibility initiatives and work closely with rural communities to
promoteintegrated farming and livestock development. This effort is expected to play vital
role inpoverty alleviation and improving livelihoods of the poor in the milk collection areas.
Engro Foods will work with the Pakistan Poverty Alleviation Fund and its three
partnerorganizations to help implement sustainable business models that increase farmer’s
profitability and develop a positive social and business climate for growth and expansion
oflivestock and other forms of value added agriculture.

8. 8 | P a g e
VViissiioonn::
Engro Foods will continue to make investments aimed at impacting lives and delighting
consumers each day, every day, in a multitude ways.
MMiissssiioonn::
To build food business to improve quality of life by offering tasty, affordable and high
nutritional products to our consumers while maximizing stakeholder’s value.
CCoorree VVaalluueess::
 Ethics and integrity
 Safety, Health and Environment
 Innovation& Risk Taking
 Our People
 Community & Society

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FFaaccttss &&FFiigguurreess::
 12 Million Consumers nationwide use Engro’s products each day.
 More than 1600 milk collection points spread throughout the country.
 Ranked2nd
in ice-cream business.
 Holds more than 50% market share in UHT milk business.
 Providing livelihood to 350,000 farmers across Pakistan.
 2 state of the art processing plant and a production farm.
 Growing Market Share covers more than 310 cities in Pakistan.
 FT/IFC Transformational Business Award 2014 for achievement in inclusive Business.
 The first Pakistani company to produce 1 billion tetra packs in a single year.
 Engro Foods 2012 Annual Report secured 2nd position for the Best Corporate Report
Award in its category.
SSttrraatteeggiicc OObbjjeeccttiivveess ((44DDss))::
 DIVERSIFY: Moving beyond the traditional dairy portfolio and explore new categories
to delight consumers.
 DECIPHER: bringing clarity in approach within our dairy portfolio to encompass a
wider consumer segment.
 DISTANCE: The brand portfolio to allow further expansion.
 DEVELOP: Extending physical reach to other geographies for exploring the untapped
possibilities

10. BBrraanndd PPoorrttffoolliioo::
Enhance the culinary experience
with Olper’s Cream- A rich
celebration of life at its creamy
best.
Get nutrition and the best value for money
with omung
::
Enhance the culinary experience Sheer indulgence in every sip comes
only with the rich creamy thickness of
Olper’s. Give your day
with Olper’s!
Get nutrition and the best value for money
with omung dobala.
10 | P a g e
Sheer indulgence in every sip comes
only with the rich creamy thickness of
Olper’s. Give your day a fresh start

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IINNCCOOMMEE SSTTAATTEEMMEENNTT
(Rs. In Thousands) 2014 2013
Sales 43,027,377 37,890,688
Cost of sales (34,926,132) (29,747,587)
Gross profit 8,101,245 8,143,101
Distribution and marketing expenses (4,692,502) (5,063,279)
Administrative expenses (1,282,240) (1,041,254)
Other operating expenses (103,770) (188,729)
Other operating income 304,854 324,301
Operating profit 2,327,587 2,174,140
Other expenses (596,328) (881,456)
Finance costs (1,236,904) (784,904)
Profit before taxation 494,355 507,780
Taxation 394,476 (296,820)
Profit for the year 888,831 210,960

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BBAALLAANNCCEE SSHHEEEETT
Assets 2014 2013
Property, plant and equipment 15,021,519 14,504,771
Long term Investment - -
Biological assets 858,680 716,465
Intangible assets 112,208 122,838
Long term advances and deposits 109,174 93,132
Compensation expense 112,581 168,865
Investment in subsidiary 427,288
Non Current Assets 16,214,162 16,033,359
Stores, spares and loose tools 788,141 739,671
Stock-in-trade 3,697,787 3,083,583
Trade debts 95,962 153,573
Advances, deposits and prepayments 113,501 181,080
Other receivables 2,865,607 2,354,280
Deferred employee share option compensation expense 90,430 136,153
Taxes recoverable 1,637,018 636,588
Short term investments - 170,000
Cash and bank balances 196,900 557,266
Current Assets 9,485,346 8,012,194
Total Assets 25,699,508 24,045,553

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Equity & Liabilities 2014 2013
Equity
Share capital 7,665,961 7,665,961
Advance against issue of share capital - -
Share premium 865,354 865,354
Employee share option compensation reserve 399,740 407,133
Hedging reserve (27,736) (9,581)
Re-measurement of post employment benefits - Actuarial loss (35,715) (34,839)
Inappropriate profit 2,710,013 1,821,182
11,577,617 10,715,210
Non-Current Liabilities
Long term finances 5,476,993 7,126,994
Obligations under finance lease - -
Deferred taxation 1,185,717 1,538,583
Deferred liabilities- pension scheme - -
Deferred Income 2,516 9,410
6,665,226 8,674,987
Current Liabilities
Current portion of long term finances 1,605,597 1,032,008
Trade and other payables 3,222,661 3,369,182
Derivative financial instruments 41,397 14,517
Accrued interest / mark-up on
* long term finances 194,025 229,312
*short term finances 61,092 10,337
Short term finances 2,331,893 -
7,456,665 4,655,356
Contingencies and Commitments
Total Equity & Liabilities 25,699,508 24,045,553

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PPOORRTTEERRSS FFIIVVEE FFOORRCCEESS MMOODDEELL
11-- TTHHRREEAATT OOFF NNEEWW EENNTTRRAANNTTSS::
The average entrepreneur can't come along and start a large food company. The threat of
new entrants lies within the food industry itself. Some companies have carved out niche
areas in which they underwrite dairy supply. These food companies are fearful of being
squeezed out by the big players. Another threat for many food companies is other food
services companies entering the market.
 Capital requirements
Competing in a new industry requires resources to invest. Production of packed products
requires huge investment of financial, human, technical, and marketing resources. At the
moment EngroOlper’s have some threats like from new entrant’s goodmilk product of
shskargang food and Cupshup of Dalda.
 Economy of scale
Economy of scale determines entry because they force potential competitors either to
enter on a large scale bases (a costly and perhaps risky move) or to accept a cost
disadvantage. Moreover, new entrants in the pasteurized milk business may encounter
scale related barriers not just in the production, but in the advertising marketing,
distribution, financing, and raw milk purchasing as well, Engrofoods achieved its breakeven
in 2010

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22-- BBAARRGGAAIINNIINNGG PPOOWWEERR OOFF SSUUPPPPLLIIEERRSS::
The suppliers of food might not pose a big threat, because of the reasons;
 Number of suppliers
Raw milk is standard commodity and is available in the open market from a large number of
milkmen. If anyone refuses to sell its product then company can buy it from others who are
already willing to sell to company.
 Importance of volume to supplier
Suppliers also have less leverage to bargain over price because the company is purchasing
the large volume of their milk and suppliers don’t have much option to sell milk to others.
33-- BBAARRGGAAIINNIINNGG PPOOWWEERR OOFF BBUUYYEERRSS::
The individual doesn't pose much of a threat to the food industry. Large clients have a lot
more bargaining power with food companies. Large corporate clients like airlines and
retailers pay millions of dollars a year. There are large numbers of distributors, who are
buying and distributing the product, so their bargaining power is low and company have
leverage to dictate implement its terms and conditions to distributors.
 Backward integration
Another reason of low bargaining power is that no buyer/distributor has the resources to
start involve in backward integration.
44-- AAVVAAIILLAABBIILLIITTYY OOFF SSUUBBSSTTIITTUUTTEESS::
This one is pretty straight forward, for there are plenty of substitutes in the food industry.
Most large food companies offer similar suites of services. Companies focusing on niche
areas usually have a competitive advantage, but this advantage depends entirely on the
size of the niche and on whether there are any barriers preventing other firms from
entering.

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55-- CCOOMMPPEETTIITTIIVVEE RRIIVVAALLRRYY::
The food industry is becoming highly competitive. The difference between one Food
Company and another is usually not that great. As a result, food industry has become more
like a commodity - an area in which the food company with the low cost structure, greater
efficiency and better customer service will beat out competitors. Food companies also use
higher investment returns and a variety
of food investment products to try to lure in customers. In the long run, we're likely to see
more consolidation in the food industry. Larger companies prefer to take over or merge
with other companies rather than spend the money to market and advertise to people.
Not only local but attempts by cross border competitors or companies to gain stronger foot
hold in each others domestic market boosts the intensity of rivalry, especially when the
foreign rivals have lower cost or very attractive products. In case of Engro foods so far
nestle and hale are the only diverse rival and another players that has just joined the UHT
Milk sector is goodmilk, no doubt the competition between Engrofoods and Haleeb is quite
intense both are engaged in consistent homework just to break and attract the customer
towards each other but goodmilk is adding to the competition between the sector.

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SSWWOOTT AANNAALLYYSSIISS
SSttrreennggtthh
Olper’s is a brand of ENGRO foods. This means that consumers can relate their former
image of ENGRO foods to Olper’s. ENGRO is a well established brand name in Fertilizer, IT
and infrastructure business. The brand is well known so customers will automatically have a
brand association with Olper’s and see it as a premium quality product. ENGRO is world
renowned so it can easily attract foreign investors in backing it against other competitors
such as Nestle. ENGRO foods can easily afford research and development costs for Olper’s
have in order to introduce new products. It can also distribute the brand through better
channels because of its long term relationship with distributors in the agriculture sector.
 PR with farmers
ENGRO has been interacting with the farmers for fertilizers and has gained quite a good
reputation over the years. It has led to a strong bond and long term relationship with the
farmers who are willing to supply milk to the company. This is an added advantage and
strength for the company because it will never be short of milk production. The farmers
also won’t have to look elsewhere to sell their milk.
 Positive response from customers
In first year, EFL crossed 1.4 billion sales figure which shows customers’ satisfaction upon
EFL’s products. 4. Its taste, quality proposition and world-class quality proposition system.
 Strong consumer & product research
Olper’s done a strong consumer & product research before and after launching the product.
This has provided them the perfect launching pad to eventually emerge as a global player in
the food industry. To develop its future portfolios, EFL has hired various global research
partners like AC Nielsen, Mindshare, JWT Asiatic and MARS marketing and advertising
agencies.
 Third-Generation Plant
EFL only, has the third-generation UHT milk plant in the country. EFL plant is the only plant
in Pakistan that uses Bactofuge technology to virtually eliminate bacteria and ensure
premium quality and hygiene. Moreover, it is also setting up another milk processing plant
in Central Punjab (Sahiwal) with an investment of Rs. 2 billion (US $ 33 million).

18. 18 | P a g e
 Worldwide fame of Engro.
 Efficient milk collection system.
 Keeping high quality standards.
 Integrated distribution and warehousing facilities.
 Successful related diversification.
 Generic brand name of Olper’s
 Large market share of Engro innovative and chemicals.
 Having Good reputation in the market by strong brand name i.e. Engro
WWeeaakknneesssseess
 Owning Red Color
The company has not owned the color red like Nestle has a green Milkpak; Haleeb has a
blue carton etc. This may create problems because when a consumer enters a grocery shop,
then he/she might have problems in recalling the brand because there is no color
association attached to Olper’s. The company may need to find a suitable color in which to
focus its upcoming marketing strategies.
 Low Quality Milk
EFL is not having its own dairy farms; it largely collects loose milk from farmers & through
its 40 milk collection centers, which sometimes is of low quality and impure because they
add vegetable oil to milk to get higher prices.
 Packaging
EFL is dependent upon Tetra Pak for the packaging of its entire dairy products. Tetra Pak is
the only option available to Olper’s for packaging because it is having monopoly in the
packaging sector in Pakistan. Due to this reason, Tetra Pak can charge them higher and it
could increase the production costs.
 Milk collection & distribution costs
EFL’s 34 out of 40 milk-collection centers are located in Punjab, where as its only milk
processing facility is situated near Sukkur (Sindh). It increases the milk collection &
distribution costs; and also increases the chances of milk getting spoiled because of
increased traveling time.

19. 19 | P a g e
 Narrow brand portfolio
It has been more than a year now, when EFL launched its first dairy product, Olper’s Milk on
March20, 2006. But EFL’s brand portfolio still consists of just 3 products i.e. Olper’s Milk,
Olper’s Cream. Whereas its competitors like Nestle and Haleeb Foods have a much
diversified line of dairy products.
 Unable to compete in price sensitive segment of UHT milk market.
 Under-utilization of the capacity.
 Unable to fulfill the demand of local powder milk market.
 Not yet ISO certified
OOppppoorrttuunniittiieess
 Increased funding by Government
Government has decided to increase farmers’ funding. This is an opportunity for ENGRO
foods because previously due to weather conditions and other reasons there was lots of
wastage of milk but now that can be reduced as farmers will be better able to store milk for
longer time periods.
 Awareness
Growing dissatisfaction with loose milk and increasing awareness about health and hygiene
issues have led to increased processed milk consumption.
 Third largest producer of milk
Pakistan is the Third largest producer of milk in the world with a total production of 32
billion liter of milk a year, whose value is more than that of the combined value of wheat
and cotton, from a total herd size of 50 million milch animals (buffaloes and cows).
Livestock accounts for 46.8 percent of agricultural value added and about 10.8 percent of
the GDP. Milk is the largest commodity from the livestock sector accounting for 51 percent
of the total value of the sector. Due to the steps taken by the government and private
sector, country’s annual milk production is expected to grow at an additional 3 billion liters
in the next few years. This is quite an opportunity for ENGRO foods as there is lot of growth
in this part of the sector.
 Improving Economy
 Population growth rate.
 High urbanization rate.
 High literacy rate.
 Flexible government policies for food industry.
 Have significant growth opportunities

20. 20 | P a g e
 Has sufficient capital to expand.
 Has the potential to innovate and differentiate the company's products to sustain a
competitive advantage
 May merge with other global businesses to eliminate competitors.
 Having Capable of expanding into other markets of the world
TThhrreeaattss
 Competition
Competition may pose a threat because the company will have to maintain its leadership in
an expanding market so that it doesn’t lose its market share to its competitors. For Olper’s
it might be difficult to penetrate in a market where the loyalties exist for such brands as
Nestle and Haleeb. These brands have been in the milk industry far too long and have left a
mark in the minds of consumers in terms of quality. Competition seems to be getting
tougher as a result of new players entering the dairy market.
 Perceptions and Price Differentials
Consumers’ perceptions and price differentials can cause a threat for the company. It is
important that Olper’s comes up to the expectations of the customers and fulfills its
conformance quality that is the company meets its promised specifications. Consumer’s
preferences change with time and prices might create certain barriers in terms of the profit
margins for Olper’s. For example, lose milk is still cheaper than packaged milk and that is
also one factor that people still prefer to buy lose milk.
 High inflation rate.
 Low purchasing power.
 Decrease in GDP growth rate.
 Increasing interest rates.
 Decreasing investment.
 Recessionary period in business cycle
 Competition with Nestle, Engro Foods and the new entrants.
 Engrofoods is currently facing are increase in Sales Tax

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EEXXTTEERRNNAALL FFAACCTTOORR AANNAALLYYSSIISS
Key Strategic Factors Weight Rating Weighted Score
OOPPPPOORRTTUUNNIITTIIEESS
Trend of cattle farming increase by 20% 0.3 3 0.9
Competitor across town slow down their operations 0.1 4 0.4
Diversification opportunities increased by 5% 0.05 1 0.05
Reduction in Exports Restrictions 0.07 3 0.22
Demand for UHT milk Growing by 9% 0.08 4 0.32
Milk Consumptions Increased 0.1 3 0.3
TTHHRREEAATTSS
New Entrants 0.08 2 0.16
Increment of Sales Tax 0.07 3 0.21
Economic & Energy Conditions 0.05 3 0.15
Fresh Milk market 0.05 2 0.1
Small Target Market 0.05 2 0.1
Total 1 2.91
IINNTTEERRNNAALL FFAACCTTOORR AANNAALLYYSSIISS
Key Strategic Factors Weight Rating Weighted Score
SSTTRREENNGGTTHHSS
Brand Image 0.08 4 0.32
Growing Trend of Sales 0.03 2 0.06
Market Share 0.05 3 0.15
Distribution Channel 0.08 2 0.16
Product Quality 0.07 3 0.21
Innovation 0.04 3 0.12
Customer Oriented 0.06 3 0.18
Qualified Work force / Excellent Employee Moral 0.02 3 0.03
WWEEAAKKNNEESSSSEESS
Centralized Decisions 0.17 2 0.34
No Sales on Credit 0.21 2 0.42
High Price 0.07 2 0.14
Related Diversification 0.12 1 0.12
Total 1 2.25

22. 22 | P a g e
CCOOMMPPEETTIITTIIVVEE PPRROOFFIILLEE MMAATTRRIIXX ((CCPPMM))
OLPERS NESTLE HALEEB
Critical Success Factors Weight Rating Score Rating Score Rating Score
1 Research& Development
0.12 3 0.36 4 0.48 2 0.24
2 Financial Position
0.13 3 0.39 4 0.52 2 0.26
3 Market Share
0.09 4 0.36 3 0.27 1 0.09
4 Product Quality
0.08 3 0.24 3 0.24 2 0.16
5 Price Competitiveness
0.11 3 0.33 2 0.22 3 0.33
6 Management
0.12 3 0.36 4 0.48 2 0.20
7 Customer service
0.06 3 0.18 3 0.18 2 0.12
8 Sales And Distribution
Network
0.09 2 0.18 4 0.36 2 0.18
9
Production Capacity
0.07 2 0.14 3 0.21 4 0.28
10 Customer Loyalty 0.13 3 0.39 4 0.32 1 0.13
Total
1.0 2.93 3.28 1.99

23. 23 | P a g e
SSPPAACCEE MMAATTRRIIXX SSTTRRAATTEEGGIICC MMAANNAAGGEEMMEENNTT MMEETTHHOODD
The SPACE matrix is a management tool used to analyze a company. It is used to
determine what type of a strategy a company should undertake. The Strategic
Position & Action Evaluation matrix or short a SPACE matrix is a strategic management
tool that focuses on strategy formulation especially as related to the competitive position
of an organization. The SPACE matrix can be used as a basis for other analyses, such as the
SWOT analysis, BCG matrix model, industry analysis, or assessing strategic alternatives (IE
matrix).The SPACE matrix calculates the importance of each of these dimensions and places
them on a Cartesian graph with X and Y coordinates.
Financial
Position
+7
+6
+5
Conservative +4 Aggressive
+3
+2
+1
Competitive
Position
Industry
Position-6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6
-1
-2
Defensive -3 Competitive
-4
-5
-6
-7
Stability
Position

24. 24 | P a g e
Y-Axis
INTERNAL STRENGTH POSITION EXTERNAL STRENGTH POSITION
Competitive Position(CP) Industry Position(IP)
(Worst -7,Best -1)
-1 Product Quality
-1 Product Life Cycle
-3 Market Share
-2 Brand and image
Average Score =-1.75
(Worst +1,Best 7)
+5 Barriers to entry
+4 Growth Potential
+4 Access to Financing
+6 Consolidation
Average Score =4.75
Financial Position (FP) Stability Position(SP)
(Worst +1,Best +7)
+5 ROA
+5 Leverage
+4 Leverage
+6 Cash Flow
Average Score = 5
(Worst -6,Best -1)
-2 Inflation
-1 Technology
-2 Demand Elasticity
-4 Taxation
Average Score =-2.5
X-Axis

25. 25 | P a g e
EENNGGRROO FFOOOODDSS SSPPAACCEE MMAATTRRIIXX
CP = 1.75
FP = 5
SP = 2.5
IP = 4.75
X- Axis
1.75 + 4.75 = 6.5
Y- Axis
-2.5 + 5 = 2.5
Financial
Position
+7
+6
+5 Aggressive
+4
2.5
+3
+2
+1
Competitive
Position
Industry
Position-6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6 +7
-1 6.5
-2
-3
-4
-5
-6
-7
Stability
Position
Conclusion
This particular SPACE matrix tells us that our company should pursue an aggressive strategy. Our company
has a strong competitive position it the market with rapid growth. It needs to use its internal strengths to
develop a market penetration and market development strategy. This can include product development,
integration with other companies, acquisition of competitors, and so on.

26. BBCCGG MMaattrriixx MMooddee
The BCG matrix or also called
known portfolio management tool used in product life cycle theory. BCG matrix is often
used to prioritize which products within company product mix get more funding and
attention.
The BCG matrix model is a por
Boston Consulting Group in the early 1970's.
The BCG model is based on classification of products (and implicitly also company business
units) into four categories based on combinations of
relative to the largest competitor
eell
or also called BCG model relates to marketing. The BCG model is a well
known portfolio management tool used in product life cycle theory. BCG matrix is often
used to prioritize which products within company product mix get more funding and
portfolio planning model developed by Bruce Henderson of the
Boston Consulting Group in the early 1970's.
The BCG model is based on classification of products (and implicitly also company business
into four categories based on combinations of market growth and market share
relative to the largest competitor.
26 | P a g e
relates to marketing. The BCG model is a well-
known portfolio management tool used in product life cycle theory. BCG matrix is often
used to prioritize which products within company product mix get more funding and
model developed by Bruce Henderson of the
The BCG model is based on classification of products (and implicitly also company business
market share

27. 27 | P a g e
IInntteerrnnaall EExxtteerrnnaall ((IIEE))MMaattrriixx
The Internal-External (IE) matrix is another strategic management tool used to
analyze working conditions and strategic position of a business. The Internal External Matrix
or short IE matrix is based on an analysis of internal and external business factors which are
combined into one suggestive model.
I
Grow and Build
II
Grow and Build
III
Grow and Build
IV
Grow and Build
V
Grow and Build
EENNGGRROO
VI
Harvest
VII
Grow and Build
VIII
Harvest
XI
Harvest
1. Score from the EFE matrix -2.91- this score is plotted on the y-axis
2. Score from the IFE matrix -2.25- plotted on the x-axis
Conclusion
This IE matrix for Engrofoods tells us that our company should hold and maintain its
position. The company should pursue strategies focused on increasing market
penetration and product development.
Strong
3 to 4
Average
2 to 2.99
Weak
1 to 1.99
Low
1 to 1.99
Medium
2 to
2.99
High
3 to 4
IFE
IFE

28. 28 | P a g e
QQuuaannttiittaattiivvee SSttrraatteeggiicc PPllaannnniinngg MMaattrriixx oorr aa QQSSPPMM
The Quantitative Strategic Planning Matrix or a QSPM approach attempts to objectively
select the best strategy using input from other management techniques and some easy
computations. In other words, the QSPM method uses inputs from stage 1 analyses,
matches them with results from stage 2 analyses, and then decides objectively among
alternative strategies.
Stage 1 strategic management tools...
The first step in the overall strategic management analysis is used to identify key strategic
factors. This can be done using, for example, the EFE matrix and IFE matrix.
Stage 2 strategic management tools...
After we identify and analyze key strategic factors as inputs for QSPM, we can
formulate the type of the strategy we would like to pursue. This can be done using the
stage 2 strategic management tools, for example the SWOT analysis (or TOWS),
SPACE matrix analysis, BCG matrix model, or the IE matrix model.
Stage 3 strategic management tools...
The stage 1 strategic management methods provided us with key strategic factors. Based
on their analysis, we formulated possible strategies in stage 2. Now, the task is to compare
in QSPM alternative strategies and decide which one is the most suitable for our goals.
The stage 2 strategic tools provide the needed information for setting up the Quantitative
Strategic Planning Matrix - QSPM. The QSPM method allows us to evaluate alternative
strategies objectively.
Conceptually, the QSPM in stage 3 determines the relative attractiveness of various
strategies based on the extent to which key external and internal critical success factors are
capitalized upon or improved. The relative attractiveness of each strategy is computed by
determining the cumulative impact of each external and internal critical success factor.
QQSSPPMM OOFF EEnnggrroo ffooooddss
Based on strategies in the stage 1 (IFE, EFE) and stage 2 (BCG, SPACE, IE), company
executives determined that Engrofoods needs to pursue an aggressive strategy aimed at
development of new products and further penetration of the market. They also identified
that this strategy can be executed in two ways. One strategy is acquiring a competing
company. The other strategy is to expand internally. They are now asking which option is
the better one.
(Attractiveness Score: 1 = not acceptable; 2 = possibly acceptable; 3 = probably acceptable;
4 = most acceptable; 0 = not relevant)

29. 29 | P a g e
QQSSPPMM ooff TTaarraanngg
Internal External Factor Weight
DIVERSIFICATION
(TARANG POWDER)
MARKET
PENETRATION
STRENGTHS AS TAS AS TAS
Brand Image 0.08 3.00 0.24 2.00 0.16
Growing Trend of Sales 0.03 1.00 0.03 1.00 0.03
Market Share 0.05 3.00 0.15 1.00 0.05
Distribution Channel 0.08 4.00 0.32 4.00 0.32
Product Quality 0.07
Innovation 0.04 1.00 0.24 1.00 0.24
Customer Oriented 0.06
Qualified Work force / Excellent
Employee Moral
0.02 2.00 0.04 3.00 0.06
WEAKNESSES
Centralized Decisions 0.17
No Sales on Credit 0.21 3.00 0.63 2.00 0.42
High Price 0.07 4.00 0.28 4.00 0.28
Related Diversification 0.12
1.00
Opportunities
Trend of cattle farming increase by 20% 0.3 1.00 0.30 3.00 0.90
Competitor across town slow down
their operations
0.10 3.00 0.30 3.00 0.30
Diversification opportunities increased by 5% 0.05 4.00 0.20 1.00 0.05
Reduction in Exports Restrictions 0.07
Demand for UHT milk Growing by 9% 0.08 1.00 0.08 4.00 0.32
Milk Consumptions Increased 0.10 4.00 0.40 4.00 0.40
Threats
New Entrants 0.08 4.00 0.32 4.00 0.32
Increment of Sales Tax 0.07 2.00 0.14 3.00 0.21
Economic & Energy Conditions 0.05 4.00 0.2 3.00 0.15
Fresh Milk market 0.05 2.00 0.1 2.00 0.1
Small Target Market 0.05
Total 1.00 3.97 4.31

30. 30 | P a g e
QQSSPPMM ooff OOllppeerr’’ss
Internal External Factor Weight
MARKET
DEVELOPMENT
PRODUCT
DEVELOPMENT
Strength AS TAS AS TAS
Brand Image 0.08 2.00 0.16 1.00 0.08
Growing Trend of Sales 0.03
Market Share 0.05 2.00 0.10 1.00 0.05
Distribution Channel 0.08 4.00 0.32 2.00 0.16
Product Quality 0.07
Innovation 0.04 2.00 0.08 4.00 0.16
Customer Oriented 0.06 1.00 0.06 3.00 0.18
Qualified Work force / Excellent
Employee Moral
0.02
Weakness
Centralized Decisions 0.17
No Sales on Credit 0.21 2.00 0.42 1.00 0.21
High Price 0.07
Related Diversification 0.12 1.00 0.12 1.00 0.12
1.00
Opportunities
Trend of cattle farming increase by
20%
0.30
3.00 0.90 1.00 0.30
Competitor across town slow down their operations 0.10 4.00 0.40 1.00 0.10
Diversification opportunities increased by 5% 0.05
Reduction in Exports Restrictions 0.07 4.00 0.28 2.00 0.24
Demand for UHT milk Growing by 9% 0.08 3.00 0.24 2.00 0.16
Milk Consumptions Increased 0.1 2.00 0.20 2.00 0.20
Threats
New Entrants 0.08 1.00 0.08 2.00 0.16
Economic & Energy Conditions 0.05 3.00 0.15 2.00 0.1
Increment of Sales Tax 0.07
Fresh Milk market 0.05 3.00 0.15 2.00 0.1
Small Target Market 0.05
Total 1.00 3.66 2.32

31. EEnnggrroo
CEO
Chief Finance
Chief operating
management
VP of Marketing
VP of HR
oo ffooooddss SSttrruuccttuurree ((hhiieerraarrcchhyy))
Chief Finance
officer
Chief operating
officer
Brand head
tarang
Brand head of
omore
Brand head of
omang
Brand head of
olpers
Chief
management
officer
VP of Marketing
VP of HR
31 | P a g e
Subordnate
Subordnate
Subordnate
Subordnate

32. 32 | P a g e
SSuuggggeessttiioonnss aanndd RReeccoommmmeennddaattiioonnss
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.
 The shopkeeper complains that EFL is not providing replacement for the expired
products, EFL should provide proper replacement to the shopkeeper to enhance
the image of the company, and create better working relations with such an
important stakeholders.
 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
 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.

33. 33 | P a g e
RReeffeerreenncceess
1. Strategic Management concept and cases by FRED R DAVID 13th edition.
2. Marketing Management by Kotler 11th Edition.
3. www.olpers.com.pk
4. www.engrofoods.com.pk
5. www.engrocorporations.com
6. www.Engroweb searchmarketing-sales.aspx.html
7. www.Engroweb searchabout-us.aspx.html
8. www.google.com
9. www.wikipedia.com