UNIVERSITY OF CENTRAL PUNJAB

SPRING 2022
Course Title: Business Strategy Planning
Course Code: MGMT 5163

Final Presentation
Course Instructor: Dr. Aitzaz Khurshid

Section: F Program: BBA Date: June 27, 2022

Submission Date: June 27, 2022 Maximum Marks: 100

Program Objective: Course Objective: Course Learning Objective: CLO1,
PO1, PO2, PO3 CO1, CO3, CO4 CLO3, CLO8
TO BE FILLED IN BY THE STUDENT

Student Name: Registration No:

Ahsan Tariq L1F19BBAM0167

Sr. No:
Taimoor Saleem L1F19BBAM0031

Muhammad Irfan L1F19BBAM0002

Page 1 of 7 Assignment
Introduction and history:

FFCL was a joint venture between Fauji Foundation and Haldor Topsoe A/S of Denmark. The
company was incorporated in 1978 as a private limited company. The company’s key activities
are to produce, purchase and market fertilizers and to invest in other fertilizer and chemical
manufacturing operations. (www.wrightreports.ecnext.com).

FFCL started production of urea on a commercial basis in 1982, with annual capacity of 570,000
metric tons. The production capacity of the existing plant increased to 695,000 metric tons
through De-Bottle Necking program. Production capacity was further enhanced in 1993 by
establishing a second plant with an annual capacity of 635,000 metric tons of urea.

Our Vision
To be an inspiring, distinguished and globally diversified enterprise with hallmark
of excellence, trust and innovation.

Our Mission
Taking a lead role in the agricultural & industrial development by delivering
premium products and services while maintaining a high level of social and
environmental responsibility for all the stakeholders, thus providing a dynamic
and challenging environment for our employees.

Competitors:

 Engro
 Fatima Fert.
 Suraj Fertilizer Industries (Private) Limited. ...
 National Fertilizer Marketing Limited (NFML) ...
 Blue Lines Trading.
Page 2 of 7 Assignment
PESTLE analysis

Political

 To fulfill local demand for fertilizers at affordable prices, the Government is providing
subsidy on the production and import of fertilizers. Investors will be allowed to relocate
second hand plant and machinery, with the same concession/exemption as applicable to
new plants.

 Import by manufacturers of Rock Phosphate and Phosphorous of fertilizer free of

customs duty.

 Tax relaxation has also been offered by the Government, giving export benefit to
suppliers of capital goods for new/modernization projects involving fertilizer.

Economical

 Tax relaxation has been offered in order to attract new entrants and to reduce the
dependence on imported fertilizers by enhancing the local production capacity.

 The Government is providing a subsidy on the production and import of fertilizers. A

massive subsidy of Rs.27billion in the supply of urea and DAP.

 Ban on the export of fertilizer is also imposed for the economic stability.

Social

 Although the adverse effects of this industry are 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 fertilizers cannot be stopped because it gives
farmers so much ease in terms of saving time and actually using it.

Technological

 In order to meet the expectation of fertilizers 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 fertilizer 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.

Page 3 of 7 Assignment
Legal

The Competition Commission of Pakistan (CCP) has alleged the fertilizer sector including the
FFCL for anti-competitive behaviour, making contracts subject to the acceptance of other
supplementary obligation and subjecting fertilizer dealers to unilateral changes in price during
the booking and delivery time.

Environmental

 Company collaborated with WWF-Pakistan for Better Management Practice in

agriculture to promote sustainable practices to reduce environmental impact of
agriculture in the rural areas.
 FFCL has installed facilities for processing of liquid effluents, gaseous emissions and
solid disposals for pollution abatement as per specified limits set by NEQS.
 FFCL is the first industrial organization to voluntarily monitor and report the compliance
with NEQS to Environment Protection Agency (EPA) through SMART. SMART is self-
monitoring and reporting program tool, which provides information on the compliance
status to the EPA.
 New Double walled Ammonia Storage to prevent environmental risk from existing single
walled.

EFE Matrix

Weight Ratin Weighted

Key External Factors
g Score

Opportunities
0.07 3 0.21
Further, increase their production capacity.
0.08 2 0.16
Introduce even better quality products.
0.20 4 0.8
Expand into neighbouring countries like Afghanistan and
Iran.
0.10 2.5 0.375
In the absence of little competition, FFC can further increase
its market share.
0.05 2 0.1
Increased support prices of crops like wheat, sugar.

Page 4 of 7 Assignment
 Having a strong financial position company can start 0.07 3 0.21
production of the new product line
The government is going focus on the agriculture sector due 0.10 2 0.2
to its major contribution towards GDP, and important issues
like soil conservation, farm mechanization, land reclamation
and plant protection.

Threats
0.04 2 0.08
Adverse agricultural policies by the government could also
affect FFC.
The manufacturing costs pertaining to the fertilizer industry 0.08 2.4 0.192
were impacted by inflationary factors, combined with
escalations in the prices of feed and fuel gas.

Shortages of natural gas in the country can limit the 0.06 3 0.18
opportunities for the company in future

New competitors in the industry like Fatima Fertilizer 0.10 2.5 0.25
Company and Engro Fertilizer and is the biggest threat to
Fauji Fertilizer due to its rapidly increasing market share
and sound financial backing.
Total 1.00 2.882

IFE Matrix

Weight Rating Weighted

Key Internal Factors
Score

Strengths
0.07 3 0.21
The market leader in the fertilizer sector.
0.08 4 0.32
Enjoys a very good reputation among the public as well as
the corporate sector.
0.05 2.5 0.125
High quality products.
0.10 3 0.3
FFCL is the market leader in the fertiliser industry having
48% of the market share.

Page 5 of 7 Assignment
 0.07 2.5 0.175
Strong financial strength
FFCL devotes considerable time and effort to promoting 0.04 2 0.08
awareness regarding good farming techniques and
methods among the growing community

FFCL is using a single brand name (SONA) for its 0.07 3 0.21
products, like SONA urea and SONA DAP, helping
farmers to remember the name, as many are highly
illiterate in the country.

FFCL has a strong dealer network all over country that 0.04 2.3 0.092
helps availability even in far-flung areas.

FFCL has an innovative education-oriented advertising 0.06 2.6 0.156

policy utilizing electronic/ print media and road side
advertising

FFCL has an innovative education-oriented advertising 0.04 2 0.08

policy utilizing electronic/ print media and road side
advertising

0.06 2.7 0.162

ISO certification
0..07 2.4 0.168
Friendly atmosphere in the organization, which leads to,
motivated employees and higher productivity.
Weaknesses

The large size of the company produces administrative 0.06 3 0.18

problems.

Lengthy organizational hierarchy 0.04 2.3 0.092

Sales force faced a tough time when being moved to 0.06 2.5 0.15
distant areas in other provinces to ensure they were spread
equally. This also contributed to high transportation costs
for the company
Armed forces management. 0.06 2 0.12
Lack of marketing. FFC products are rarely seen on 0.03 2 0.06
satellite TV channels.
Total 1.00 2.68

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