INTERNSHIP REPORT ON PAKARAB FERTILIZER MARKETIND

MARKETING DEPARTMENT

NAME:

Muhammad Tauheed Sattar

ROLL NO:

1009 (8TH)

SESSION:

2013-2017

(Morning)

UNIVERSITY OF EDUCATION LAHORE (MULTAN CAMPUS)

1. Title Page.
1.1 Name of the organization………………………………………………………………

1.2 Name of internee, student Roll No and session……………………………..

1.3 UE Logo…………………………………………………………………………………………

1.4 Name of University……………………………………………………………………….

2. Internship Complete Certificate.

2.1 Scanned copy of the Internship offer latter………………………………………

2.2 Scanned copy of your internship completion certificate……………………

3. Dedication (Optional)……………………………………………………….

4. Acknowledgement……………………………………………………………

5. Executive Summary………………………………………………………….

6. TABLE OF CONTENT……………………………………………..............

7. Overview of the Organization…………………………………………..

7.1 Brief History……………………………………………………………………………………

7.2 Nature of the Organization……………………………………………………………..

7.3 Production line and Brand Portfolio…………………………………………………

7.4 Strategy of Branding used of the Organization…………………………………

7.5 Main clients………………………………………………………………………………………

7.6 Main Competitors of the Organization……………………………………………..

8. Organization Structure……………………………………………...........
8.1 Hierarchy………………………………………………………………………………………….

8.2 Number of Employees in the Organization……………………………………….

8.3 Introduction of the All Departments………………………………………………...

8.4 Comments of the Organization…………………………………………………………

9. Plan of yours Internship Program…………………………………........

10. Training Program……………………………………………………………….

10.1 Detailed description of the operation\ activities performed by the department in which
you worked…………………………………………………….................................

10.2 Detailed description of the task assigned to you OR project assigned to you….

11. Structure of the Marketing Department……………………………..

11.1 Department Hierarchy………………………………………………………………………….

11.2 Number of employees working in the Marketing Department………….

11.3 Marketing Operation………………………………………………………………………………

12. Function of the Marketing Department…………………………………..

12.1 Segmentation Strategy…………………………………………………………………………………

12.2 Target Marketing strategy…………………………………………………………………………

12.3 Product Planning, development & management………………………………………..

12.4 Positioning………………………………………………………………………………………………….

12.5 Pricing Strategy…………………………………………………………………………………………..

12.6 Distribution Strategy…………………………………………………………………………………..

12.7 Promotional Strategy………………………………………………………………………………….

13. Structure of the Sales Department…………………………………………...

13.1 Department Hierarchy…………………………………………………………………………………

13.2 Number of employees working ……………………………………………………………………

13.3 Sales Operation…………………………………………………………………………………………….

14. Function of the Sales Department……………………………………………….

14.1 Sales Methodology………………………………………………………………………………………….

14.2 Type of selling…………………………………………………………………………………………………

14.3 Sales return procedures…………………………………………………………………………………..

15. Customer Service Department……………………………………………………….
15.1 Process of development Relation with customer………………………………………….

15.2 Techniques of retaining customers………………………………………………………………

15.3 Techniques of attracting new customer………………………………………………………

15.4 Ways of Handling different kind of customer…………………………………………………

16. Financial Analysis………………………………………………………………………..

16.1 Profitability Analysis……………………………………………………………………………………….

 Net profit Margin.

 Administrative Expense Ratio.
 Operating Expense Ratio.
 Return on Equity.

16.2 Liquidity Analysis…………………………………………………………………………………………….

 Current Ratio.
 Current Assets to Total Assets.
 Quick Assets Test Ratio.

16.3 Long term debt paying ability analysis………………………………………………………………

 Debt Ratio.
 Debt to Equity Ratio.

16.4 Analysis for inventory……………………………………………………………………………………….

16.5 Vertical and Horizontal Analysis of the Financial Statements……………………………

17. Critical Analysis……………………………………………………………………………

18. SWOT Analysis……………………………………………………………………………..

18.1 Strength…………………………………………………………………………………………………………….

18.2 weakness’………………………………………………………………………………………………………….

18.3 Opportunity………………………………………………………………………………………………………

18.4 Threats………………………………………………………………………………………………………………..

19. Conclusion & Recommendation……………………………………………………

20. References…………………………………………………………………………………….
 DEDICATION
“I dedicate this effort to my Parents & Teacher and especially my Mother who has
supported me all matters of life & profession.”

&

“Special thanks to my friends for their love and support and my teacher who have provided
me guidance.”
 Acknowledgement

“All the praise is for Allah, the most merciful and beneficent, who bless me with
the knowledge, gave me the courage and allowed me to accomplish this task.”

I have taken efforts in this project. However, it would not have been possible without the
kind support and help of many individuals and the organization. I would like to extend my
sincere thanks to all of them.

I am highly indebted to Mr. Tayyab Amin, Mr. Sajid Iqbal, Mr. Safwan, & Mr. Mirza Younas
for their guidance and constant supervision as well as for providing necessary information
regarding the project & also for their support in completing the project.

I would like to express my gratitude towards my parents & member of Pakarab Fertilizer
Ltd. (FATIMA GROUP) for their kind co-operation and encouragement which help me in
completion of this project.

I would like to express my special gratitude and thanks to industry person for giving me such
attention and time to guide and fully support my project.

My thanks and appreciation also go to people who have willing helped me out with their
ability.

MUHAMMAD TAUHEED SATTAR

University of Education Lahore
(Multan Campus)
 Executive Summary.
Pakistan is a developing country, economy dominated by agriculture. Pakistan’s principal
natural resources are arable land and water. About 25% of Pakistan total land area is under
cultivation and is watered by one of the largest irrigation system in the world. The most
agriculture province is Punjab where wheat and cotton are the most grown. Some people
also have mango orchards but due to some problems like weather. They not found in a big
range. Fertilizers are used to improve the quality of food, growth production of the crop. It
is an important factor that is involved in the farming and cultivation. There are number of
companies running in Pakistan proving quality fertilizer for such purpose. Pakarab Fertilizer
is one of these companies which is currently owned by Fatima Group and Arif Habib Group.
The company was taken over by the current management through the process of
privatization in 2005.

This work is the collection of my observation and experience during the internship period
and after wards. This internship has also prepared me for my future career. The experience
has taught me responsibility, teamwork and how to handle problem occurring. Even though
the nature of work was quite basic as an internee, never the less I got to see what practical
life is. This report gives a profile of Pakarab Fertilizer and an insight into the department
where I worked. This report also reflects my learning and experience at pakarab fertilizer
along with my responsibility and the task that I performed.

M. TAUHEED SATTAR

ROLL# 1009
7.1 Brief History.
7.1.1 FERTILIZER INDUSTRY IN PAKISTAN;
Pakistan is an agricultural country where about 72% of the total population not only resides
in rural areas but also relies for its sustenance on agri-activities. This sector is contributing a
lion’sshare in thenational economy. It contributes 24% to the total GDP. The fertilizer is an
important input, which boosts the agri-production. Unfortunately, it is used three times
lower in our country than that of the developed countries in the world. We are not still self-
sufficient in producing our staple food grain, soil deterioration, nutrient mining. And there is
insufficient and inadequate use of fertilizer.

7.1.2 History of Industry;

The first fertilizer plant in Pakistan was built in 1958 at usta khail producing Ammonium
Sulfate. First Urea plant of the country was set up at Multan by WPIDC in 1962 where
expansion took place in 1973 and 1979. Then another plant was set up in 1968. These
produce 750000 MT of urea jointly. Then OH built its plant in November 1971 with 34500
MT capacities, which increase to 445000 MT in 1991. In 1981, NFC's Pak-Saudi fertilizer
plant started production of 550000 MT of urea and in 1982 Haripur Hazara station
producing 96,000 MT same year, FFC's Machigoth570, 000 ton capacity plant
gave production which increased to 1,330,000 M.T in March1993.

7.1.3 PIDC (Pakistan Industrial Development Corporation).

In 1952 Pakistan industrial Development Corporation (PIDC) was established which has
improved the ratio of investment in public sector.

7.2. Nature of the Organization.

Pakarab Fertilizer is a private Limited registered company.

Vision:
To be a world class manufacturer of fertilizer and ancillary products, with a focus on safety,
quality and positive contribution to national economic growth and development. We will
care for the environment and the communities we work in while continuing to create
shareholders' value.

Mission:
 To be the preferred fertilizer company for farmers, business associates and suppliers
by providing quality products and services.
 To provide employees with an exciting, enabling and supportive environment to
excel in, be innovative, entrepreneurial in an ethical and safe working place based on
meritocracy and equal opportunity.
 To be a responsible corporate citizen with a concern for the environment and the
communities we deal with.
Business Values:

 Integrity.

 Innovation.

 Team work.

 Safety, Health, Environment and CRS.

 Customer Focus.

 Excellence.

 Valuing People.

These are the values that Pakarab Fertilizers Limited epitomize, and are reflected in all our
transactions and interactions. Congruence to these values has been a part of our business
strategy. They are bound in the very fabric of our organization, shaping and shaped by
organizational processes, procedures and practices.

Integrity
Behaviors for “Integrity”:

 We are sincere, truthful and trustworthy in all our transactions and interactions and
will honor commitments.
 We respect the dignity and rights of individuals and groups assuring that our
judgments are free from discrimination and biases.
 We create an environment of fairness and transparency and abide by all applicable
laws in letter and spirit.
Innovation
Behaviors for “Innovation”:

 We encourage knowledge building and information sharing by creating an

environment in which innovative ideas are nurtured and developed.
 We maintain an environment of openness towards new ideas that challenges the
status quo while eliminating the fear of failure.
Teamwork
Behaviors for “Teamwork”:

 We consciously encourage “We” culture & discourage “I/Me” culture as we believe

that teams can achieve more than what individuals can do.
 We take pride in the accomplishment of the teams while respecting differences in
opinions and value diverse talents.
 We believe in working together for the achievement of common objectives by
empowering employees collectively while retaining their individuality.
 Our team agenda takes precedence over personal goals as we take pride in team
accomplishments and accept joint responsibility for any possible shortcomings.
Safety, Health, Environment and CSR
Behaviors for “Safety, Health, Environment & CSR”:

 We are committed to building a safe and healthy workforce that contributes towards
the business growth and sustainability.
 We take a proactive approach towards health, safety and environment management
in order to achieve zero harm.
 We support communities and main a special focus on protecting environment across
all our business operations.
Customer Focus
Behaviors for “Customer Focus”:

 We are committed to exceeding our customers’ expectations by actively engaging

with them and ensuring prompt actions for continuous improvement in our products and
services.
 We conform to customer needs in everything we do by adopting a proactive
approach – we go to customer’s door step and do not wait for the customer to come to us.
Excellence
Behaviors for “Excellence”:

 We endeavor to exceed expectations in everything we do.

 Our pursuit of business excellence is characterized by the formulation and
implementation of world class processes and effective use of technologies.
 We continuously develop and improve skills and competencies of people and ways
of working to achieve outstanding results and benchmark our performance with “best in-
class”.
 We make optimal use of all resources for sustainable business growth.
Valuing People
We value our people as our greatest resource

Behaviors for “Valuing People”:

 With mutual respect at all levels, we develop sense of ownership by involving people
in decision making.
 We treat all people equally with respect, dignity and without any discrimination.
 We provide an exciting and enjoyable environment, ensuring work-life balance,
creating opportunities for growth and development and supporting gender diversity.
 We are working diligently in a diverse culture while respecting and valuing people for
their individuality.
 We ensure providing a career path for each individual.
 We believe in nurturing and helping people unleash their talent whilst rewarding
their contributions through a high performance culture.
 Our environment will always be favorable for attracting and retaining the best talent
through a transparent, merit based system.

7.3. Product Line and Brand portfolio of the organization.

Products produce by Pakarab Fertilizer in this plant.

 NP
 CAN
 UREA

Product import by Pakarab Fertilizer.

 DAP
 ZINK
 SOP
 SSP
 MOP
Brand Portfolio:

7.4 Strategies:

 Product Brand Strategy: The strategy involves the assignment of a particular name
to one and only product as well as one exclusive positioning.
 Line Brand Strategy: in this strategy the line responds to the concern of offering one
coherent product under a single name by proposing many complimentary product
 Range Brand Strategy: Range brand bestow a single brand name and promote
through a single promise a range of product belonging to the same area of performance.
 Umbrella Brand Strategy: The same brand supports several products in different
market. Each of them has its own advertising tools and develops its own communication.
 Source Brand Strategy: This is identical to umbrella branding strategy expect for one
key point the product are now named directly. Within the source brand strategy the farmer
spirit dominates even if the offspring all have their own individual name.

7.5 List of main clients.

There are main clients in this organization. The all client are register to the organization in
specific term and condition.

 Rana Iqbal Enterprise.

 Shakh Arshad.
 Taraq Fertilizer.
 Taj fertilizer.
 Kamran Enterprise.
 Saad enterprise.
 Ali Hanan.
 Kasan Enterprise.
 Kareem Ali.

7.6 List of main Competitors.

 Engro Chemical Company Ltd.
 Fuji Fertilizer Company Ltd.
 Dawood Hercules.
 Fatima Fertilizer Ltd.
 National Fertilizer Corporation.
 Pak American Fertilizer Limited.
 Tara Urea (Agritech Pakistan).
8. Organizational Structure.

Board of Directors | Pakarab Fertilizers.

Arif Habib Chairman

Mr. Arif Habib is the Chairman of Pakarab Fertilizers Limited. He is also the Chief Executive
Officer of Arif Habib Corporation Limited, director of Pakarab Energy Limited and Chairman
of Fatimafert Limited, Fatima Fertilizer Company Limited.

Fawad Ahmed Mukhtar Chief Executive Officer

Mr. Fawad Ahmed Mukhtar is the Chief Executive Officer and Director of the Company.

Fazal Ahmed Sheikh Executive Director

Mr. Fazal Ahmed Sheikh is a Director of the Company. He holds a degree in Economics from
the University of Michigan, Ann Arbor, USA. He has played a strategic role in Fatima Group’s
expansion and success. He is the CEO of Reliance Weaving Mills.
 Faisal Ahmed Mukhtar Non-Executive Director

Mr. Faisal Ahmed Mukhtar is a Director of the Company. He holds a Law degree from
Bahauddin Zakariya University, Multan. He is the former Mayor and City District Nazim of
Multan, and continues to lead welfare efforts in the city.

Abdus Samad Non-Executive Director

Mr. Abdus Samad is Director of the Company. He has vast experience of equity portfolio
management, capital market operations and corporate finance.

Nasim BegNon-Executive Director

Mr. Nasim Beg is Director of the Company.

Muhammad Kashif Habib Non-Executive Director

Mr. Muhammad Kashif Habib is a Director of the Company.

 Rehman Naseem Non-Executive Director

Mr. Rehman Naseem is Director of the Company. He obtained a Bachelor of Economics

Degree from Columbia University, New York.

Management Team of Pakarab Fertilizers.

 Muhammad Abad Khan (Advisor to CEO)

 Salman Ahmad
 Arif ur Rehman
 Brig. Adeeb Azam
 Ahsen ud Din
 Lt Col (Retd) Rana Irfan
 Arif Hamid Dar
 Ausaf Ali Qureshi
 Ahsan Qadir Qureshi
 Sardar Naufil Mahmud
 Iftikhar Mahmood Baig
 Aftab Ahmed Khan
 Kashif Mustafa
(Head of Internal Audit)
(Chief Manufacturing Officer)
(General Manager Administration)
( Director Technology Division)
(Admin Manager)
(Chief Financial Officer)
(Company Secretary)
(Chief Human Resource Officer)
(Chief Information Officer)
(Director Business Development)
(Chief Supply Chain Officer)
(Finance Controller)
8.1 Organization Hierarchy.

8.2 No.Of employees.

 Executives 151
 Office Worker 181
 Daily wages worker 4140 (According to the requirements.
8.3 Introduction for all the departments.
Marketing Department at PFL & Its Functions.
Like marketing departments of most organization, Marketing Department of Pakarab
fertilizer has to study the market and the target customer and their buying behaviors from
time to time. It is also one of the duties of the marketing department to decide and
formulate best ways and road-maps to reach valuable customer.
Being a student of BBA (Marketing) I was appointed as an internee at pakarab fertilizer
Regional Office Multan marketing department & Plant Distribution section (PFL).

Function of the marketing departments:

Sales Department: sales department at Pakarab Fertilizer has been divided into 10
regions a recently add a Peshawar region. I will explain the region and coverage of the
marketing department in detail on next page. Warehouse network of pakarab fertilizer is
operated with the help of private contractors as well as pakarab has its own warehouse
throughout the country. There are three sales operations in marketing department.

Sales operation.

 Distribution.
 Dealers.
 Formers

Distribution Department: Distribution Department at pakarab fertilizer companies of

plant distribution, which is handled from different localities and hence Pakarab has three
distribution channels in three plants of the organization. In this distribution department
there are sub-department are

 Administration.
 Distribution.
 Allocation.
 Freight.

The location appearing in the first column is the defined Marketing Regions (MR) of PFL.
Each region is looked after by Regional Marketing Manager (RMM). The RMM Supervisor of
all the ten regions report to the Director Marketing in the Head Office.

Each marketing region is further divided MD. A marketing district is looked after by a DMM.
The MDs have been worked out keeping in view the geography of the area and the
functional convenience in operation. One MD may cover one or more political district
wholly or partially. These MRs and MDs are modified from time to time based on the
environment, geography alignments and business needs.

Supply Chain Department

The primary objective of supply chain management is to fulfill customer demands through
the most efficient use of resources, including distribution capacity management, inventory
optimization and efficient delivery to point of sale.
Supply Chain at Pakarab fertilizer

- Demand & Supply Planning, on one side coordinates with Marketing &sales team to
understand the varying demand and on the other with factories to ensure supply of
the products with required mix volume and time effectiveness. Supply chain
manages the fresh stock availability while ensuring efficient working capital
management.
- Physical Logistics, manages warehousing requirements and efficient transportation
of finished goods to customer and consumers. There are different distribution
contractors to distribute the fertilizer product throughout the country. Carriage
contractors registered to the organization with Business Associate (BA). 300 plus
distribution channels throughout the country.

8.4 Comments on the Organization Structure.

9. Plan of internship:
My internship program was in Pakarab Fertilizer Limited located at Khanewal Road Multan.
The departments of organization where I work are Marketing & distribution Office of
pakarab Plant side. In this innovative era marketing is the main component of any
organization. And the marketers are those who make possible and create ways for an
organization. They set different strategy to capture the market and to achieve organization
goals regarding the selling of product. I started my internship from 28th august till 25th
September, 2017. Marketing & Distribution fits in the organization structure. Plan of my
internship program are!

 Distribution Section
 Team introduction
 Logistic Operation.
 Oracle Application.
 Dispatch note.
 Routine Operation.
 Sales Operation.
 Sales return procedure
 PSA, PDA, STR, BG, DD.
 CO,OGR, ROSP
 SS CARD, WATCH &WORD.
 Handling and Taking
 DES, Warehouse visit

10. Training Program:

During my internship I have done my project responsibilities and different activities at the
organization. My project was that I have to find a ware house for the storage of organization
product as chemical. And also perform daily routine task as scan the cargo receipt and
analysis the financial statement also. I check daily allocation statement of issued item plant
regarding fertilizer. And also looks transship statement. Once main work I perform that I
deal with the carriage contractor for the carriage contractor for the transfer delivery of
goods in shape of fertilizer.

 Daily Expenses statement.

 PDA & PSA
 ROSP & STR
 DD & CO
 OG Statement.
 Pending Order Status.
 Watch and Word Agreements.
 BG
 Allocation
 Dispatch not
 Freight bill

The experience definitely affects my career positively. As I would not have been come to
know about the atmosphere of any organization, this experience has told me a lot about
environment of organization and behavior of different type of people. All of this edge goes
to my institute’s good understanding about student’s future.

11. Structure of the Marketing Department.

11.1 Department Hierarchy Chart.

Brand Manager Director Channel

Marketing Manager

m
 NSM
South Zone

TSM
ZSM North
Central
DM South Zone
ZSM Central

North Zone
ZSM South DM Center

DM North
Supporting officer
RSM 1
Head office
RSM 1
RSM 2 AODO 1

RSM 3 RSM 2 AODO 2

RSM 1
AODO 3
RSM 3

AODO 4
RSM 2

AODO 5

RSM 3 AODO 7 AODO 6

11.3 Name of the employees working in MD.

 District Sales Manager 56
 Regional Sales Manager 10
 Zonal Sales Managers 1

The numbers of employee in marketing department are 77 employees are worked in

different task.
11.4 Marketing Operations.
The departments of organization where I work are marketing and distribution office of
Pakarab plant side. In this innovative era marketing is the main component of any
organization. And the marketers are those who make possible and create ways for an
organization. They sets different strategies to capture the market and to achieve
organization goals regarding the selling of product. Marketing and Distribution fits in this
organizational structure. In this department there are sub department.

 Administration.
 Distribution.
 Allocation.
 Freight.

.12. Function of Marketing Department:

 Segmentation Strategy: Segmentation strategy in marketing department of the
organization. There are two type of the segmentation. They are following there:
 Direct to consumer.
 Dealer register.
 Geography segmentation
The marketing department use two way of segmentation strategy first one is a direct
consumer mean to say that sale the product direct to consumer. They are focused on the
rich society. The rich societies start a business in the organization.
The second is a direct dealer is register to the organization through the BA (business
Associate). The total 3600 dealer throughout the country.
 Target Market: The marketing department of pakarab fertilizer is target to the
existing dealer.
 Product planning: is the ongoing process of identifying and articulating market
requirements that define a product’s feature set. Product planning serves as the
basis for decisions about price, distribution and promotion. The planning
departments focus on the product quality and the huge amount of the product and
develop the design of the product.
 Positioning: The positioning of the organization are two ways to positioning in
market.
 Public Awareness massage.
 Safety and secure.
 Pure quality and pure relation.
 Trade Market. Marketing is a discipline of marketing that relates to increasing the
demand at distributor level rather than at the consumer level. However, there is a
need to continue with Brand Management strategies to sustain the need at the
consumer end.
 Retail market. Is the process by which retailers promote awareness and interest of
their goods and services in an effort to generate sales from their consumers?
  Pricing Strateg: pricing strategy change to the pricing department of the pakarab
fertilizer. The pricing strategy of the product change into the condition of the market
and season. The pricing strategy change time to time. And pricing change to political
change and the change of international price, competitor’s price and inventory. And
the price increase due to plant distance.
13. Structure of the Sales Department:
13.1 Hierarchy Chart.

Sales Head

ZSM

RSM

DSM

13.2 NO. Of Employees:

 District Sales Managers 56
 Regional Sales Managers 10
 Zonal Sales Managers 2
 Sales Managers 1

13.3 Sales operation:

15. Customer Service Department:
15.1. Process of developing Relation with Customer:
Never underestimate the value and reach of a loyal, repeat customer. Keep customers
coming back for more-- and bringing their friends with them-Powerful relationships
don't just happen from one-time meetings at networking events-- you don't need
another pocketful of random business cards to clutter your desk. What you need is a plan to
make those connections grow and work for you.

There are 5 essential tactics for that:

1. Build your network-- it's your sales lifeline.

2. Communication is a contact sport, so do it early and often.

3. E-mail marketing keeps relationships strong on a shoestring budget.

4. Reward loyal customers, and they'll reward you.

5. Loyal customers are your best salespeople.

15.2. Techniques of retaining customer:

Customer retention refers to the activities and actions companies and organizations take to
reduce the number of customer defections. The goal of customer retention programs is to
help companies retain as many customers as possible, often through customer loyalty and
brand loyalty initiatives.

1. Keeping your VIP customers.

2. Target customers with special offers.

3. Rewarding your most profitable customers.

4. Personalizing your follow-ups.

5. Scheduling time with your customers.

15.3. Techniques of attracting new customer:

New customers can be attracted by three ways:

 Preparing to Attract Customers.

 Attracting Customers with General Marketing.
  Attracting Customers with Online Marketing.

Preparing to Attract Customers:

 Determine who your customers are.

 Opt to attract a new demographic.
 Model your strategies on what your customers want, not what you want to give.
 Consider increasing your budget for location, marketing and presentation.
 Follow your competition.

Attracting Customers with General Marketing:

 Choose a good location.

 Invest in signage.
 Offer a discount.
 Host an event or contest.
 Offer loyalty and/or referral discounts.
 Emphasize your expertise.
 Try several advertising strategies until you find the right fit.

Attracting Customers with Online Marketing:

 Spend money on the back end of each website.

 Offer them something for free.
 Start social media accounts.
 Consider offering free shipping.
 Give a well thought out loyalty bonus.
 Buy pay-per- click (PPC) marketing.

15.4. Ways of handling different kind of customers:

There are two types of customers:
1. The hostile and aggressive type.

2. Complainers.

The hostile and aggressive type:

 Remain calm and professional.

 Let them vent their emotions.
  Find the right moment to get your voice in.
 Be friendly
 Keep eye contact.
 Do not argue.

Complainers:

 Listen
 Do not pass judgment.
 Maintain service attitude.
 Solve the problem.

18.1 SOWT analysis

SWOT analysis is very important for any organization as it a very effective way of identifying
strengths and weaknesses, and of examining the opportunities and threats organization
trend to face. Strengths and weaknesses are internal while opportunities and threats are
external.

Strengths and weaknesses have to be matched with the opportunity in the external
environment and also and to counter any threats that might pose a danger to plan. SWOT
Analysis is generally considered a Marketing tool but although it has its origins in Marketing
field and is predominantly used by Marketing people, and it can also be done for self. SWOT
Analysis is a tool which guides one to see stand in terms of job prospects and career growth.

Every picture has two sides, good and bad side. If organization has some strength, thy also
have some weaknesses in internal environment. At the same time organization enjoy some
opportunities and have to face some threats from the external environment. In the SWOT
analysis of this report I have tried to mention some strengths, weakness, opportunities and
threats of the PAKARAB Fertilizers.

18.2 Strengths of Pakarab Fertilizer Company

 Pakarab Fertilizer is offering a wide range of products; i.e. NP, CAN, UREA and CO2.
 PFL has monopolized and ruled the production of Calcium Ammonium Nitrate and
Nitro Phosphate for a long time.
 Pakarab is the oldest project of Fertilizer in Pakistan and hence it has a valued
experience on production and marketing of fertilizer (products).
 Pakarab Fertilizer is located in the most productive agriculture belt of Pakistan.
 It enjoys the position of the 2nd largest fertilizer complex in Pakistan.
 It is one of best corporate entities in the country.
 CDM project at Pakarab Fertilizer is the only project of its type in the country.
 Pakarab has its own hospital with qualified doctors, nurses and staff in the
residential area.
 Industry has its own separate dispensary within the industrial premises.
 PFL has a management club for executive employees as well as a worker’s club for
non-managerial employees.
 PFL has three schools for the employee’s children within the housing colony, which
makes the job at PFL even more attractive.
 PFL has own transport system with the number of buses, cars and trucks which are
used by the organization as well as any employee can borrow these vehicles for their use.
 The industrial area has wide roads make it easier for vehicles to move around within
the industry.
 Pakarab has its own power generation plant which provides electricity to the
industry as well as to the housing colony.
 Pakarab has recently planted a new power generation unit which has reduced the
consumption of natural gas used in the electricity production.
 Newly installed CO2 collection units at PFL have made wasted material (CO2 ) a
profitable by-product.
 Residential area of Pakarab is adorned with trees, plant and greenery to reduce the
impact of deadly emissions from manufacturing plants that can severely affect the health.
 Foo-proof security system makes it comfortable and convenient for employees to
leave their family alone at home and hence employees are available at a phone call in
exceptional situation.

18.3Weaknesses of Pakarab Fertilizer Company

 PFL has outdated and obsolete plants with high operation costs.
 Earlier PFL was a Government Institution with signature political environment
normally seen in most of the Govt. organization. New management has tried to eliminate
this political factor with the help new policies and regulation but outcome are not as
expected.
 As PFL is the oldest Fertilizer Complex of Pakistan that is why most of the plants are
very old and hence have higher maintenance costs as compared to other fertilizer
complexes of the country which are not as old as PFL.
 PFL is depending on imported feed stock suppliers.
 Urea made by PFL is more powered as compared to the URAE produced by FFC.
 Pakarab is located on the belt where it is facing under fined load-shedding of natural
gas currently which has reduced the production of the company by 75%.
 There are a lot of Govt. Compellation, especially for the pricing policy.
 PFL has to outsource repair facilities, which boosts up the costs even more.
 The efficiency of UREA plant in unsatisfactory because of its obsolete and outdate
machinery.
 People living in surrounding often complain about facing environment and health
problem because of hazardous gaseous emission. Due to these allegation media has
criticized PFL a lot new and then.
 Warehouse owned by Pakarab Fertilizer are still not connection to the database,
hence the entries are done manually which slow down the process and the chances of error
are higher.
 I observed too much centralization in the organization which often result into
delayed decision making.
 Upward communication seems to be weak within the offices which results in
dissatisfaction among employees and reduces employee’s efficiency.

18.4 Opportunities for Pakarab Fertilizer Company

 A little improvement in the product quality can result in higher sales.

 There is a span of proper sales promotion.
 An improved decision making process well result in timely and efficient decision.
 Proper delegation of authorities is required and it will help in making decision on the
spot.
 Installation of new UREA facility is also the requirement of the company and it will
give a remarkable improvement in UREA production.
 Availability of gas from Iran can help in continuing and resuming of production
facilities.
 Long term profits should be preferred over short-term benefits.
 As Pakistan is an agriculture country and farmers are getting awareness about the
balance use of fertilizer, demand of fertilizer has increased and is still increasing.
 PFL can work on the project of placing a pipe line from the same natural gas reserves
which are being utilized by Fatima fertilizer currently, to run its daily operation.
 All warehouse have LAN connection, the need is to provide them with the computer
system only which will result in error-free operation at warehouse.
 There is no quota restriction by WTO since 2005, so there is more chance to export.
 As the demand of the fertilizer is high as compared to the supply, Pakarab Fertilizer
has an opportunity to expand capacity to fulfill the local demand.
 Proper placement and locality decision of warehouse can improve the distribution
network even more.

18.5 Threats for Pakarab Fertilizer Company

 In peak season, a threat of disconnection of natural gas prevails as often done by

tribes in Baluchistan.
 Pakarab has been threatened by the media and people several times for emitting
hazard into the atmosphere.
 Unstable political condition in the country is also a bi threat to the whole fertilizer
industry.
 Better quality UREA produced by FFC is also a threat for the UREA produced by PFL.
 Plants are very old and obsolete and shutting down is a constant threat for the
department heads and maintenance officer at the facility.
 Government policies are not consistent regarding fertilizer industry.
 Plant is not working since six month because of unavailability of natural gas, and still
the sources say that the load shedding is for undefined duration.
 Because of the uncertain job situations, resignation of valuable human resource for
doing a job at better place with more job security is also a threat for the organization
Human resource of a company is its most valuable asset.
 Worst condition of UREA plant is a greater threat as compared to other facilities;
once it is out of order it may take months to operate again.
 Government is importing cheaper fertilizer from other countries which are also a
threat for sale level of facilities in the country.
 Gradually increasing Gas prices are a continuous threat for profit level and rising
prices of the fuel is resulting in expensive transportation.
 Bio fertilizer is the main threat for the chemical fertilizer producers because it is
cheap as well as environment.
 Rapidly rising and huge market share of FFC is a constant threat for the company
 The need of agriculture lands of Sindh is majorly met by Engro, FFC, and FFBL and
hence these are the major shareholder in the province.
 Plant are very old and obsolete and shutting down is a constant threat for the
department head and maintenance officer at the facility.
19. Conclusion and Recommendation
Fatima Group is one of the leading business organizations in Pakistan. The sponsors have
been engaged in industrial and trading business since 1936 and, over the year the market
reputation, financial standing and strength of the group has grown has enormously.
Privatization Commission decided to privatize Pakarab Fertilizer in the era of General Pervez
Musharraf and Fatima Group took over Pakarab Fertilizer in collaboration with Arif Habib of
Karachi in 2005.

After the privatization of Pakarab Fertilizer when new management looks over Pakarab
Fertilizer, first thing they did was the firing of the employees with the help of top
management of Pakarab at that time. All employees which were not needed anymore
where offered Golden Shake Hand. Some of the work force was rehired from the same
bunch of employees who reigned for Golden Shake Hand. Later on when new management
started hiring new employees on vacant position, rehired employees realized that the newly
hired employees of the same designation are being offered for better and handsome pay
packages, which was quite humiliating and uncertain. This practice of biased treatment is
still being practiced in term of salary package as well as the facilities attached with the job
are different for the employees hired after privatization. This unfair practice has divided
employees in group and is developing a rivalry behavior among employee and it is giving
leg-pulling a boost. Fatima Group is in intense need to stop this practice and should do
justice to all employees without the biased treatment on the basis of new and old
employees. Like many organization of the country currently PFL is facing heavy crisis
because of unavailability of Natural Gas but still if we look into political trends they are
always in the favor of this industry. The Govt. has provided several incentives under fertilizer
policy, 2001, to encourage fertilizer production in the country, which include; investors will
be allowed to relocate second hand plant equipment and machinery, with the same
concession as applicable to new plants, the Govt. will be providing concessionary feed gas to
the fertilizer plants for production of urea, tax relaxation has also been offered by the govt.
according to this policy, imports by manufacturers of Rock Phosphate and phosphorus of
fertilizer free of custom duty, etc.

To meet the demand of fertilizer through indigenous production, self-reliance in design

engineering and execution in production facilities is crucial. This requires a strong
indigenous technological base in planning, development of process know-how, detailed
engineering and expertise in project management and execution of projects.

Pakarab Fertilizer is also in need of carrying out de-bottlenecking and energy saving scheme
in their existing plants and to enhance the capacity and reduce the specific energy
consumption per ton of product. Pakarab Fertilizer should do some planning to convert to
Liquefied Natural Gas (LNG).farmers’ education plan should be more enhanced and
developed as fertilizer can become a source of pollution when they are used in excess
quantities. Among all the fertilizers produced by Pakarab Fertilizer and other fertilizer
companies in the country, only potassium fertilizer is not yet considered as a source of
environmental pollution. Fertilizer like UREA, CAN and DAP if used unreasonably, causes
environmental pollution and mainly through increase of nitrate in agricultural products,
drinking water, eutrophication of water resources and increase of cadmium. Moreover,
company should be very careful in taking precise measures for the oxides of nitrogen as
they cause respiratory diseases like asthma, lung cancer and bronchitis.

It is noted that due to the existence of black market and heavy demand, farmers have to
pay above than the stated price because demand is higher than the supply and moreover,
the class who is buying this fertilizer is mostly not educated and hence they do not have
realization and knowledge about their rights. The government should check the prices at
which the farmers are getting fertilizer; they should make a platform for farmers where they
come up with such problem. A list of fertilizer prices should be provided by the government
to the local shops so that the farmers are aware of the prices which the Govt. has set. This
step will help in saving the farmers from the curse of black market.

As other players in the industry are financially strong, so they are doing their best to
enhance their production levels according to the demand. Production facility of Pakarab is
backward in technology and lack of resources cannot be ignored as well so Pakarab should
also facilitate their current production facilities with more capacity and improved
technology to sustain in the market.

The expectations of employees from the employees have changed over the decades.
Employees today expect employees to respect them and to facilitate them with work
friendly environment if they expect employees to work with devotion and efficiently.
Regional office Multan is lacking work friendly environment because the generators is not
available for air conditioners during load-shedding hours. Management should arrange
generator for Multan Regional Office and other regional offices for warehouse in charges
should also be facilitated with air-conditioners.

All organization is advancing their system and operation in terms of technology. Pakarab has
also created a data base; all regional offices in the industry are connected to the database
which is operated from the Lahore Head Office. The need is to connect the warehouse to
the same database, as Pakarab warehouse are still not provided with computer system and
operation and entries are done there manual.
References
In this section I have used for data collection in my internship REPORT.

 I have collect information through interviews for different sub department in the
organization
 I have collect information through previews report.

Relations with Business partners

We seek to do business with suppliers, vendors, contractors and other independent
businesses who demonstrate high standards of ethical business behavior. Our
company will not knowingly do business with any persons or businesses that operate
in violation of applicable laws and regulations, including employment, health, safety
and environmental laws. We shall take steps to assure that our suppliers, vendors
and contractors understand the standards we apply to ourselves, and expect the
same from them.

Our Employees
We believe that highly engaged employees are the key ingredient in professional development and business
success. Therefore, we invite our employees to contribute their best and to avail the opportunities for
improvement and growth. We are an equal opportunity employer and promote gender diversity, self-development
and innovation. We provide employees with tools, techniques, and training to master their current jobs, broaden
their skills, and advance their career goals.

Page Last Updated: Friday, April 29, 2016

Customer Focus
Behaviors for “Customer Focus”:

 We are committed to exceeding our customers’ expectations by actively engaging with them and
ensuring prompt actions for continuous improvement in our products and services.

 We conform to customer needs in everything we do by adopting a proactive approach – we go to

customer’s door step and do not wait for the customer to come to us.