Engro Foods Pest Analysis

EduQual Extended Postgraduate Diploma in Business and Marketing Strategy

Assignment No 3

[Type the author name]

1/26/2015

Table of Contents
Engro Foods Limited: 2
Task 1: 2
Classification of Stakeholders: 2
Level of Interest of Stakeholders: 3
Employees and Management: 3
Investors: 4
Customers: 4
Non-Governmental Organizations: 4
Government/Regulatory Authorities: 4
Competitors: 4
Suppliers: 5
Risks: 6

Engro Foods Limited:
Task 1:
Classification of Stakeholders:
Engro Foods is one of the prominent companies in Pakistan’s food industry which is listed in the Karachi Stock Exchange. Engro Foods has been incorporated as a subsidiary of Engro Corp. in 2004. Since then, it is offering a wide range of quality products to satisfy the

Currently, Engro Foods has a diversified portfolio ranging from milk to juices and ice creams. For the analysis of the current position of Engro Foods a study of various macro environmental factors and a competitors study are required.
To undergo a complete macro environmental factors analysis PESTLE is conducted:
PESTLE ANALYSIS:
Political factors:
The political instability in Pakistan has been a major factor in the decrease in the overall GDP. Any changes or alterations in the rules relating to the food industry like pure food ordinance 1960 could influence the Engro Foods to change their working condition.
Economic Factors:
Pakistan is facing terrible electric and gas load shedding due to which the industries have been closed down. Engro Foods has to manage the alternative fuel which not only increases the cost of the products but also results in wasted products which in most cases is O’more Ice Cream. Secondly, economic conditions of the buyers may influence the sales of the company. If the buying power of the society decreases continuously they will shift to the milk provided by the milk men rather than bacteria less packaged milks which will result in diminishing profits for the Engro Foods.
Social

Some of the already existing brands in the market were Nestle Milkpak and Haleeb Food’s Haleeb Milk. The brands that invaded the market after the launch of Olper’s are Good Milk by Shakarganj Industries. Some of the packaged milk brands have created their brand value but Olper’s has increased its market share by targeting the specific customers and price differentiation. If we talk about ice cream Wall’s is the major competitor of O’more; before the launch of O’more the major market share was captured by Wall’s and a little by Hico but now Wall’s and O’more have an equal market