PEST Analysis Of Engro Fertilizers, Pakistan
Hassan Shahid Forman Christian College (A Chartered University), Lahore, Pakistan E-mail: firstname.lastname@example.org Owais Shafique (Corresponding Author) The Virtual University of PakistanLahore, Pakistan E-mail: email@example.com Adnan Shokat University of Ballarat, Victoria, Australia E-mail: firstname.lastname@example.org Omair Hassan Bodla Forman Christian College (A Chartered University), Lahore, Pakistan Saad Arshad Forman Christian College (A Chartered University), Lahore, Pakistan Abstract We can analyze various different factors in a firm's macro environment by the use of the PEST framework. The PEST analysis of current trends in marketing seems to be favouring the overall industry whereas in reality due to shortfall of basic raw material gas Government is unable to provide the necessary facilities for maintaining optimal production of fertilizer in the country. A report by the Daily Dawn indicates that the shortage of urea can cause a loss of Rs. 150 billion to the fertilizer industry and the farmers which will finally lead to enormous economic loss for the country. Engro is one of the biggest companies of Pakistan with a sizeable contribution to the GDP which is severely suffering from the political instability and economic recession which in turn poses threat to the company’s profitability and its survival depleting its capacity to compete under the existing production cost structure in given circumstances. Labour force is the major input of any industry and Engro is facing the crisis of an escalated series of labour-management conflicts. The concern must endeavour to fulfil the labour demands in order to retain them for better future prospects of the Company. Keywords: PEST Analysis, Engro Fertilizers, Pakistan, Political, Economic, Social, Technological analysis 1. Introduction: PEST analysis "Political, Economic, Social, and Technological analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations (PEST analysis, 2012).
Journal of Biology, Agriculture and Healthcare ISSN 2224-3208 (Paper) ISSN 2225-093X (Online) Vol 2, No.10, 2012
We can analyze various different factors in a firm's macro environment by the use of the PEST framework. If a factor emerges in numerous categories managers plainly make a decision of where they think it best belongs. This analysis helps managers decide whether the political, economic, social and technical conditions of the organization they want to invest in are perfect from investment perspective. It is one of the most important analyses for investing in another organization (Shafique, 2012). Using a PEST analysis helps a business to understand various macro environmental factors that they need to take into consideration when determining the decline or growth of a particular market. It is also a crucial tool for ascertaining business position, the potential of a business and the direction of business should be moving in to thrive in the marketplace. All large businesses should be undertaking this kind of analysis in order to understand the needs and wants of their customers (PEST Analysis Overview, n.d.). Engro Fertilizers Limited is a wholly owned subsidiary of Engro Corporation and a renowned name in Pakistan’s fertilizer industry. Engro holds a vast, nationwide production and marketing infrastructure and produces leading fertilizer brands optimized for local cultivation needs and demand. Engro is also a leading importer and seller of Phosphate products, which are marketed extensively across Pakistan as phospatic fertilizers (Engro Fertilizers, n.d.). Engro Fertilizers...