Management Practices in

FrieslandCampina Engro Pakistan limited

Nimrta Rani (013-18-0231) - Team Leader

Sunaina Mandhan (013-18-0232)
Zahid Ali (013-18-0226)
Akram Ali (013-18-0229)

Program
BBA-III

Submitted to
Mr. Faisal Qamar

SUKKUR IBA UNIVERSITY

KANDHKOT CAMPUS

ACKNOWLEDGEMENT

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Thanks to Almighty Allah-The Creator, The Supreme, The True Judge, The Perfect and Purest for
all. Defiantly, He is the Creator and Commandant, and gave us the strength to accomplish our
assigned management project.

History of all great work is to witness that no great work was ever done without the support of
your delegating hardworking team efforts.

We are submitting our generous gratitude to our instructor Sir Faisal Qamar, Assistant Professor
at Sukkur IBA, University Kandhkot Campus, for his sincere and great efforts to guide and make
us able to complete this project. We warmly send special thanks to Mr. Faheem Fazal, Manager
Planning-Dairy at FrieslandCampina Engro Foods, who gave their precious time for the interview
and appreciate every question which was placed before him.

I would like to appreciate my teammates with my heartiest expressions for their useful work,
references and suggestions for this project. However, it would not have been possible without the
support of our teachers Mr. Faisal Qamar who guided us about how to conduct interviews.
Madam Syeda Beena Zaidi we are very much thankful to you for your constant support and
motivation you gave us throughout the process.

Finally, we would like to especially thank to Mr. Ataullah who arranged this interview for us and
made it possible on giving time.

Table of Contents

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Executive Summary: ............................................................................................................................... 5
Rationale: ................................................................................................................................................ 6
Chapter 1 - Introduction to FrieslandCampina Engro Pakistan Ltd. .......................................................... 7
History: ................................................................................................................................................ 7
Facts and Figures: ................................................................................................................................ 7
Incorporation: ..................................................................................................................................... 8
Vision Statement: ................................................................................................................................ 8
Mission Statement:.............................................................................................................................. 8
Objectives and Goals: .......................................................................................................................... 8
Core Values: ........................................................................................................................................ 8
Product Line: ....................................................................................................................................... 9
Head Office: ........................................................................................................................................ 9
Plant Location: ..................................................................................................................................... 9
Chapter 2 – General Management .......................................................................................................... 10
Management Levels: ......................................................................................................................... 10
Organizational Chart/hierarchy: ......................................................................................................... 11
Decision Making Approach: ............................................................................................................... 12
SOPs (Standard operating procedures): ............................................................................................. 12
Rules and Regulations: ....................................................................................................................... 13
Critical Analysis: ................................................................................................................................. 14
Chapter 3 – Managing Today’s Workplace ............................................................................................ 15
Symbolic vs. Omnipotent view: .......................................................................................................... 15
The External Environment: ................................................................................................................ 15
Stakeholders Relations: ..................................................................................................................... 17
Seven Dimensions of Organizational Culture: ..................................................................................... 17
Socialization: ..................................................................................................................................... 19
Strong vs. Weak culture: .................................................................................................................... 19
Critical Analysis: ................................................................................................................................. 19
Chapter 4 - Planning .............................................................................................................................. 21
Vision Statement: .............................................................................................................................. 21
Mission Statement:............................................................................................................................ 21

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 Departmental Goals:.......................................................................................................................... 21
SWOT Analysis: .................................................................................................................................. 21
BCG Matrix: ....................................................................................................................................... 22
Growth Strategy: ............................................................................................................................... 22
Competitive Strategy: ........................................................................................................................ 22
Goal- Setting Approach: ..................................................................................................................... 23
Critical Analysis: ................................................................................................................................. 23
Chapter 5 – Organizational Design ........................................................................................................ 24
Work Specialization: .......................................................................................................................... 24
Departmentalization: ......................................................................................................................... 24
Chain of Command: ........................................................................................................................... 24
Span of Control: ................................................................................................................................. 24
Centralized or Decentralized: ............................................................................................................. 25
Formalized:........................................................................................................................................ 25
Critical Analysis: ................................................................................................................................. 25
Conclusion: ........................................................................................................................................... 26
Management Team: ............................................................................................................................... 27
Annexure: ............................................................................................................................................. 28

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Executive Summary:
This industrial visit is an academic project assigned to the students of BBA-III of Sukkur IBA,
University. Structured interviews were taken from the senior position holders in company. The
main purpose of this project is to learn the difference of theoretical concepts and practical real
industrial life in terms of challenges faced and the use of strategies to overcome those constraints
by the authorities and managers of the organization and to prepare a report on organization. In
report making, our books first five chapter are taken on which we have to consider. During the
structured interview with manager, we had to gather required for our project

The FriesLandCampina (Engro Foods Pakistan) started its operations in 2006 and dominated the
milk industry of Pakistan, with a vision to provide “best nutrition and to produce UHT milk” and
to be a multinational organization in the market with two different located plants one in Sukkur
and other in Sahiwal, in very short period of two years it achieved its economies of scale. Their
product line is Olpers, Tarang and Omore. In Sahiwal plant they have two SBUs, Dairy products
and Ice-cream. They have two seasons of milk availability one is flush and other is flean, in flush
they have more availability of milk. Sukkur plant is for internal consumption and not
commercialization. The have introduced win-win concept in which they say our success is
farmers’ success and farmers better living is their success.

It is their promise to make the grass greener for the cows, the yields higher for the farmers, the
growth stronger for the milk industry and a glass of milk full of natural goodness for every
Pakistani. The company was highly formalized, disciplined and the coordination was also high
among the managers and other employees, they were having great knowledge of the vision of the
company. Moreover, their plans, goals were mutually set with upper level of management criteria.

This project report first portion consists on FrieslandCampina Engro history, second of
management level within organization, third managing today’s workplace, fourth planning and
the last is organizational design.

During this industrial visit, we faced the major issue of time management due to external forces.
Respondent took too much time while conducting structured interview although questionnaire

5
was designed very effectively and efficiently. Furthermore, next time these areas should be
revisited to save time.

Rationale:
Industrial visit has its own importance in a career of a student who is pursuing a professional
degree. It is considered as a part of University curriculum and objectives of industrial visit is to
provide students an insight regarding internal culture of companies. We know, theoretical
knowledge is not enough for making a good professional career. With an aim to go beyond
academics, industrial visit provides student a practical perspective on the world of work. This
interaction gave the students an exposure to current work practices similar to possibly theoretical
knowledge being taught at University. For meeting challenging market needs, business students
must be able to create a link between theory and practice.

The rationale of the event is to assess the organization culture, learn management practices in
organizations and understanding business processes, such industrial visits and academic projects
improve the quality of education and help students develop practical skills and thorough
understanding of industrial practices. Beside this, the project is to improve our interpersonal and
soft skills. Over all it was a wonderful learning to have in this stage of the degree as well as
career.

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Chapter 1 - Introduction to FrieslandCampina Engro Pakistan Ltd.

History:

Engro Foods limited has been a leading dairy and UHT milk producer in Pakistan since
26/march/2005 and started its operations in just a short period of seven months with record sales
at Sukkur and with a broad vision of producing “Best Nutrition and multinational products” to its
customer by quality milk in shape of its product “Olpers”. Moreover, observing the success in the
Sukkur plant, after two years in (2007) Engro Foods Limited established their second plant at
Sahiwal with different SBU such as Ice-cream along with diary and a mission of dominating the
market with best packed milk and dairy products in the Pakistan. In addition to that, EFL
produced 250000 liter milk at the beginning. Regardless of this, EFL introduce its new product
“Tarang tea whitener and Dairy Omung” in 2008 and “Omore Ice-cream” in 2009, in order to be
dominant and to provide customers with flavor. Furthermore, the dairy farm was established at
Narah with capacity to export 50000 – 60000 liters milk per day. The company was founded as a
subsidiary of Engro Corporation in 2005. In 2016, Dutch dairy co-operative, Friesland Campina,
acquired 51 percent stake in the company for US$450 million. The intends to expand its reach in
Pakistan and in future access Central Asian markets In July 2019, the company changed its name
to FrieslandCampina Engro Pakistan. Top quality brands like Olpers, Olwell, Tarang, Omore and
Owsum have been successfully propelled under the tiller of Company’s dairy products. To
support these brands and their highest standards of quality, Engro Foods has financed heavily in
milk processing and milk collection substructure. And the company believes that the success of
its products will help the company to achieve its goals. The company is aiming to be the giant of
food industry globally.

• The Plant Located at Sukkur on 23 Acre Land

• The Plant has been established at a Cost of Rs. 1 Billion
 Provide direct employment to 1400 people.

Facts and Figures:

• 45% Market Share of Dairy Product

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 • Market in 300+ Cities in Pakistan
• 18th Largest Customer of Tetra Pak World Wide
• 2nd Largest Company of Chilled Milk Collection of Pakistan
• 2000+ Milk Collection Centers
• 2 Milk Processing Plants

Incorporation:

Engro company was established in 2003, after which in 2005 Engro decided to diversify their
business more by venturing into the food business by establishing Engro Foods.

Vision Statement:

Our vision is to make a difference in the everyday lives of the people on either side of our
business fence. Our passion is to contribute towards a healthier and happier today to ensure a
healthier and happier tomorrow, through the quintessential element of relationships amongst
living beings and the miracle of nature called “milk”.

Mission Statement:

Build branded food business to improve quality of life by offering tasty, affordable and high
nutritional products to our consumers while maximizing stakeholder’s value.

Objectives and Goals:

Engro Foods main objectives are to supply everyone their favorite Olpers Milk and to satisfy the
consumer need and wants. Engro Foods second objective is to increase the value for the
stakeholders and company value. We want to be the major player in the food industry.

Core Values:

• Purpose driven
• Owner’s mindset
• Commercially obsessed

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We are driven by the purpose of nourishing by nature. This means we are committed to providing
better nutrition for Pakistan. As the population crosses 300 million by 2050, we will be there to
help feed the nation with affordable, safe and constantly improving dairy products. We are
committed to realizing a good living for our farmers so they can maximize their incomes by being
a part of our ecosystem & contribute to the GDP. We will continue to work towards reducing our
carbon footprint and make conscious contributions to achieve climate-neutral growth for now and
generations to come.

Our purpose, our plan is to revolutionize the dairy landscape in Pakistan. We will lead a white
revolution to provide safe, healthy & affordable dairy nutrition to Pakistan. We will actively
respond to the dynamic needs of our consumers with market oriented innovations and constantly
improving products through our brands. We will empower our farmers with economic stability
and sustainable livelihoods through dairy development programs to ensure inclusive growth.

Product Line:

FrieslandCampina Engro has the following product line in diary products at Sukkur plant.
• Flavored milk
• Powdered milk
• Milk
• Lassi

Head Office:

FrieslandCampina Engro Foods headquarter is in Karachi, Pakistan.

Branch Offices:
In Pakistan, there are two branch offices of FrieslandCampina Engro Foods.
1. Sukkur branch office
2. Sahiwal branch office

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Plant Location:

Sukkur plant is located on Old Barrage Road, Near Chohara Road Mandi, Rohri Sukkur, Sindh
6520
Chapter 2 – General Management

Management Levels:

There exist different management levels in the organization and under them there are
subcategories. In the top management they have a board of directors, managing director and
directors of departments who are overseeing middle managers, they are General Managers as
senior managers and managers and they are looking after first line managers in which they have
an assistant managers, team leaders and executive associates and then comes non-managerial staff
in which they have labors who work under first-line managers.

Moreover, each Director has its own departmental goals, targets to be achieved together with its
managers and other people. They make the plans, set targets and distribute each according to
capability of producing greater output.

The number of employees on each functional level is given below.

Top management: 13 employees

Middle management: 400-500 employees

First-line management: 250-300 employees

Non-managerial staff: 400-500 employees

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 Top
Managers

Middle Managers

First Line Managers

Non-Managerial staff

11
Organizational Chart/hierarchy:

12
Decision Making Approach:

Generally, FLC Engro Foods Organization uses rationality decision making approach and goes
through all possible solutions and chooses the best one for example: if any employees reports
problem against anything firstly they could contact their departmental heads, if they don’t feel
comfortable talking with their departmental head, there is open environment in organization they
can confess with other department senior manager. They have speak-out system with different
channels where you can openly share your problems with anyone and you will be heard. All
problems, conflicts or personal matters are resolved through formal process.

SOPs (Standard operating procedures):

The FriesLandCampina Engro is the real example of fully dignified in terms of Standard
Operating Procedures (SOPs), policies, disciplines, rules and regulations. Following are the SOPs
which everyone in the company follows;

• Safety: It is the major concern of the company that every individual safety must be insured, i.e.
everyone wears closed shoes to avoid any injury, everyone should step carefully while coming
down from stairs and should keep their hands on side handle, and phones must be kept inside
during the walk or any plant visit.

• Security: Before entering any department, be it administration or any other you must ensure
your identity first. On the main gate you have to submit your CNIC first then you can enter in
the company and if you have to park you car in company parking you should submit your
license also otherwise you will not be permitted to park you car inside the company.

• Road limits: Road limits are defined in the company; there was zebra crossing you have to
walk inside that otherwise an investigation report will be made on the violation of road limits.

While walking from zebra line or going from one department to other, you can’t make a call
while walk just to avoid any mishap.

• Orientation: Before going to plant visit you are given orientation of the plant how it works,
where it is situated, how it is designed, how is the work process and in what steps work is

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 divided. Safety orientation is given to avoid any mishap and clear instructions are given in case
of any emergency you have reach out for summary point.
• Medical assurance: Before going for plant visit, company ensures that a person doesn’t have
any major illness or allergy. In plant there was huge noise of machines, and aroma of milk
which could result in any drastic situation.

• Plant visit: Women are strictly prohibited for wearing jewelry, open shoes and loose clothes. If
anyone is having such attire there are apron coats present for women, jewelry is removed and
close shoes are provided. Men are not allowed to wear shalwar kameez. Wearing hair and nose
mask is mandatory for everyone.

There are many other SOPs for employees, but being visitors there we were given information
which could be maintained.

Rules and Regulations:

There are strict rules and regulations which everyone should follow. If anyone violates any rule
he/she pay huge penalty or expelled from job.

• Punctuality: Punctuality and discipline are the major factors which play part in success. There is
strict timing of 9:00am when you have to be there in office and closing time of office is 5:00pm
but its is not mandatory you should leave office by 5 you can stay late to complete your work
there.

• Dressing: People on senior positions like plant managers, managers can do casual smart dressing
i.e. jeans and shirt. People who are first-line managers have to follow formal dress-code they can
not wear jeans in office. Every department has its own dressing labors have their dress suitable
for their work and their supervisors have different dress just to differentiate the people according
to their work position.

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• Attendance: There is attendance portal where you’ve to sign-in when you have entered the
company and sign-out while leaving. If you want to avail any absences you first have to inform
then you are permit to leave otherwise your pay will be deducted.

• No violence: In company premises, any kind of violence is strictly prohibited. From the damage
of office property to fight with any colleague strictly not allowed.
• Outbreaks: If any employee is not motivated to work or tired of same job doing again and again,
he/she is given outbreaks for days or weeks. To energize and motivate the employee’s activities,
sessions are done.

There are many other rules and regulations other than above. Major rules and regulations for you
knowledge are provided to enhance your knowledge.

Critical Analysis:

In books we read that MD/ (Managing Director) and CEO/ (Chief Executive Officer) are different
people but in FrieslandCampina Engro Foods has only one person who is CEO and MD at same
time. Now FrieslandCampina Engro Foods is a multinational organization and in this level I think
that one person is not able to work efficiently because if there were two people then they can
solve different type of problem at a time in which they were assigned to do and must be both have
experience in this level.

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Chapter 3 – Managing Today’s Workplace

Symbolic vs. Omnipotent view:

According to the Manager, the FriesLandCampina Engro Foods Pakistan somehow uses both the
management views, symbolic and omnipotent. They encourage the manager to take the risk in
order to generate new ideas. Moreover, he said our organization has granted the manager
responsibility, authority and the decision making power, for that reason the manager would be
considered as responsible for the failure.

I.e. the manager can be responsible when the failure caused due to some internal team conflicts
and he was unable to resolve them, which later caused in the failure.

The External Environment:

There are many external forces that affect their organization such as:

Political/legal:

Government is the major stakeholder of the organizations like; changes in the government,
policies, rules, regulations and for that they hold meetings with all the upper governmental bodies
such as: PM, CM, Commissioner and others. Moreover, the Food Authority is liaison in terms of
the quality assurance of our brands.

Demographics:

In demographics, they see the region wise demand, in which area which product is preferred
most; they see its demand and which SKU of any product people purchase most. For example: In
Quetta region the SKU 1.5ml of Tarang is sold and generating profits and this has link with
income their purchasing power is less. Choice of people also matter in Quetta customers prefer
Tarang and in Karachi people prefer Olpers. They have to face challenges in terms of SKUs such

16
as we have to make the different versions in the products such as large pack, small pack and
medium size of the packaging in order to meet the needs of different demographics.

Socio-Cultural Factors:

There are some socio-cultural challenges in the areas like Balochistan where we have to ensure
the safety, the culture that demands so much of the product awareness in order to increase sales.
Further, there’s not a huge access to the social media to promote the products.

For example; They have had a case in the Supreme Court about Olpers (Chemical mixing case)
and Tarang, which affected the image through social media and the sales of the product quite
heavily, but at the end, they were able to prove by having a visit of the Media at the Sahiwal plant
in order to maintain the image of the product.

Furthermore, we created a Corporate Affairs Department (CAD) in order to oversee the

constraints in the remote regions like Balochistan.

Technological Advancement:

Technological advancement has been the major factor in terms of production and the competition
in the market, for that they have been using the advanced technology of Ghea company
equipments, from Germany. In addition to that, they are using the Tetra Pak equipments, which
are from Sweden; this is where we have competitive edge in the market. They have latest
machinery and latest tools. In January, they will do addition of equipment.

Economic Factors:

There are some factors in the economy that hurt the company’s bottom-line quite severely,
especially the inflation the FriesLandCampina Engro Foods has to face so many challenges in
terms of high taxes, high interest rates, low purchasing power and recessions and so on. Further,
due to heavy cost we have to increase the price of the products, but increase in the price decreases
the sales quite drastically and consumer start shifting towards other alternatives available in the
market.

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Global Factors:

After the acquirement of FriesLandCampina it has become global company, because FLC is
having operations in more than 30 countries. Now they can easily trade from one country to
another because it is internationally known.
Stakeholders Relations:

Stakeholders are the major source of the success for any organization. The manager told that they
have many stakeholders like, Contractors, Suppliers, distributors, customers, but the most
important are the vendors who are the distributors for the organization. They are the source of our
success, for that we are trying the best to facilitate every stakeholder in order to maintain the
positive relations. Furthermore, we have a Product Quality Complaint (PQC) system, in order to
get suggestions and feedback from the customers about the product satisfaction and for further
improvements.

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Seven Dimensions of Organizational Culture:

Attention to
Detail

Stability People
orientation

Oraganizational
Culture
Aggressiveness Outcome
Orientation

Innovation and
Team work Risk Taking

Innovation and Risk Taking:

Risk factor in the FriesLandCampina Engro Foods Pakistan is very high in order to get favorable
outcomes from the impossible ways and for innovative ideas. Risk taking is the key to have
fortune outcomes, until the organization take a risk or encourage the employees to bring new and
creative ideas; otherwise it would be difficult to have something new and different. They have
high innovation in terms of new machinery, equipment and technology.

People Orientation:

People orientation is high in the FriesLandCampina Engro Foods Pakistan told by the Manager.
Where they have different programs for the newcomers and the older ones, for supposing they
have an appraisal system for current employees on a yearly basis in order to ask about the area
they are interested in because employees become tired of doing the same job and get demotivated
so they give due transfers, send them on rotation to the new plant to boost their morale.

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Outcome Orientation:

Yes, it’s very high, there is how part in the organization in which the manager has to report on the
outcome that he/she has achieved. In addition to that he will provide detailed information about
the ways, sources or road map he used in order to achieve that specific target, they focus on hard
work and going through the legal process.

Attention to Detail:

The attention to detail has been increased since the FrieslandCampina has acquired it. It has
become more rigid to provide single detail in written form and formalized way. Proper channels
are being set for everything this indicates to high attention to details.

Team Work and Aggressiveness:

Yes, team work and aggressiveness are truly high, in FriesLandCampina Engro Foods. They
focus and encourage their employees as well as managers to work in teams in which they have
cross-functional working teams through which they try to get done impossible things by working
together. Further our aggressiveness is also high in terms of outcome by each department try to
work up to the mark by helping each other such as; engineer can work with a production officer if
required.

Stability:

FriesLandCampina Engro Foods is far away from these considerations, has no interference in
politics and doesn’t do any funding to the government. On the other side, in the social issues they
are step ahead from all the other organizations by going to schools and giving scholarships to
needy and poor students. They are highly involved in social corporate responsibility (CSR), for
suppose; it’s among our motives that even a drip of the factory’s unhygienic water should not go
to river or other populated areas, just not to harm sea animals.

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Socialization:

Each and every new employee gets the orientations in order to understand the organization
cultures, to become familiar with the organization rules, regulations and policies. New joiners are
given trainings to understand the work requirement. Moreover, we have TNA programs for
newcomers in order to create awareness and we set eligibility criteria for the employee to work
with.

Strong vs. Weak culture:

There is strong culture prevailing in the organization, where they have strict rules, regulation and
policies in terms of everything. Furthermore they are not restricted for formalized dressing but
they have different dressings for the different departments. There is no compromise on the rules,
regulation and policies, told by the manager.

Critical Analysis:

When it comes of management views, the FLCEF is an ideal one for any manger to work because
the risk factor was very high along with responsibility, authority and decision making power. The
creativity and innovation is a plus point in the company, the biggest risk that the company having
was they didn’t have older people in the management side; definitely they were not so much
experienced as well it shows they prefer the young and athletic employees. Moreover, the culture
was highly people oriented, outcome oriented as well as very strong and well-disciplined along
with socialization and training oriented programs in order to create awareness to the employees.
The stakeholders are key component so as for the FLCEF but they were totally relying on
suppliers and vendor. Depending so much upon these stakeholders may affect negatively in terms
of supply chain, company needs to make alternatives in the future.

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Chapter 4 - Planning

Vision Statement:

Plans are of little importance, but planning is essential. Engro Foods has plans to acquire any
multinational company and become global, but FrieslandCampina acquired it with 51% stake. If
they had planned this would not have happened. It is also global now but ownership is of
FrieslandCampina.

Mission Statement:

They are much planned to improve the quality of life by offering tasty milk with low fats which is
beneficial for health. It is their goal to maximize stakeholder’s wealth; because those investors
who have invested in company have firm belief so they try their best not to disappoint them. In
January they have planned to launch a new product

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 Departmental Goals:

Every department has definitely its goals. They follow KPIs (Key Performance Indicator) which
show them where they are standing and where they need to improve.

BCG Matrix:
Growth rate

Market
Low
Share
High Low

Their big star brand is Olpers with 40% market share, it is market leader.

Growth Strategy:

FrieslandCampina Engro foods focuses on two growth strategies one is the concentration strategy in
which they are Stars: Question Mark:

expanding their Olpers FCMP powder

product line in
dairy products Cash Cow: Dogs:
like milk to tea
Tarang Omung
whiteners and

High
now dairy creams and the other strategy which they follow is Integration in which they
SWOT Analysis:
are their own suppliers like farmers which provide them milk directly to their milk collection centers
Strengths
and distributors like contractors, Weaknesses
vendors distribute theirOpportunities Threats
product to different parts of country.

Their Less Brand Loose

developme
Competitivepeople
Strategy: diversity
nt
Milk

Narrow
They follow Globally
different competitivebrand
strategies; one is theOutbreaks
product differentiation strategy in which
Government
known Policies
portfolio
they say their products are unique in a way because they are producing low fat milk which gives
Safety for
their Awarenness Surveys Taxes
employees 23
Increased Higher
PR with consumption Gas
farmers of processed
charges
Liquid Miilk
 culture

them edge in the market. Second is the focus strategy in which they have one SKU of tarang in
1.25ml which no other competitor have and they enjoy good sales from it and last is cost
leadership which is very least used in the organization. In result, they follow mixed strategies
according to situations.

Goal- Setting Approach:

Goals are set mutually, every department sit together and decide what they can achieve together.
They follow the means by objective (MBO) approach. A target of achieving sales is set and it is
sub-divided into departments and they according to their capability achieve those targets.

Critical Analysis:

Over all, it looks healthy organization but things I learned in book and when I saw them
practically and analyzed myself I found few facts. They have only one product standing in their
stars. In long run, for suppose any competitor comes in market and sells its product in lower price
than them it will result in their failure. Their one product Pro-Cal milk, I had never seen any
advertisement of this product. Due to less awareness people don’t prefer buying packaged milk.

24
Chapter 5 – Organizational Design

Work Specialization:

Work specialization in the FriesLandCampina Engro Foods Pakistan is very high, in which there
are different people for different jobs and they work according to their skills, specialties and
eligibilities. Moreover, there are alternatives available as a backup for each job by which the work
can be handover to other same field specialist, in case of anyone’s absence.

Departmentalization:

There is departmentalization in company from top to bottom. They have separate departments as
functions, in its under comes, HRM, accounts, finance, supply chain etc. area wise they have sales
emphases according to regions i.e. in divisions north, south etc. In products, they have milk and
ice-cream, but at Sukkur plant they have only diary products. In processes they have operations
units, packaging units and distribution units. In customers there comes distribution unit in it,
which carries product to different retailers, wholesalers and finally to households chores.

Chain of Command:

According to manager, there is various level of command in the FLCEP. A company’s hierarchy
starts with the BOD at the top. The MD reports to BOD and middle management employees
report directly to the CEO. Then, there are department managers and supervisors who report to
the higher-level executives. Lastly, there come the front-line workers who report to their
respective supervisor and department manager. With that if an employee faces any issue
regarding the assigned task then they directly report to their departmental head.

25
Span of Control:

The span of control in the FrieslandCampina Engro Foods is distributed in terms of department
depends upon the manager as the number of the employees he/she can manage. Likewise, “I have
three people whom I coordinate and oversee”, said Mr. Faheem. In addition to that the span of
control depends upon the qualities, technicalities and the experience that a manager is having,
where in the Production and Engineering manager has been controlling more than 20 people quit
efficiently and effectively. Moreover, by having lesser people manager can get most output and
the coordination can also be sufficient.

Centralized or Decentralized:

FrieslandCampina Engro Foods is highly centralized in terms of decision making and authorities,
but they do follow the MBO approach in which they include their General Managers in the
decision making because they believe that the lower level issues and constraints cannot be rightly
identified except the influence and presence of managers, decisions are made mutually but the
manager and lower level employees are supposed to follow the upper level goals as sub goals.

Formalized:

The formalization of the FLCEF Pakistan begins right from the entrance encompass of the
organization. The company has fixed highly rigid rules and regulation in the every aspect and
their first preference is the safety of each and every individual in the organization and every
department has its own policies in terms of dressing, timing and working but those all the people
are not supposed to violate any law. Since the acquisition of the FriesLandCampina, the policies
has been strict a lot more than before.

Critical Analysis:

Keeping all the things aside the FrieslandCampina Engro Foods was highly formalized, departmentalized,
the span of control was ideal for any employee to work in, Chain of Command was as real as we learnt in
the books and observed over there and DOL was focused where employees were having different exposes

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to work on. But since the Acquirement of the FrieslandCampina Employees are facing a lot of strict rules
and regulations and workload, in future their skilled people may turnover from there due to that burden and
so much of formalities. Overall, the organization was properly designed.

Conclusion:
We are thankful to Sir. Faisal Qamar for organizing such as informative event for us in crucial to
develop our practical skills and exposure regarding management practices in organizations. While
going through the entire industrial visit, the co-operation is found to be very well organized
developed and most ideal industry in every walk of its production, administration and
management aspects.

As we have been there we have experienced and gained the knowledge about the industry. In
books we acquire only theoretical knowledge, but in actual, the pragmatic implementation of the
same, can be grasped only by visiting an industry, which FrieslandCampina Engro Foods
provided to us.

We have learned that how managers are able to manage an industry at a large scale. We come to
know that how we implement our ideas in practical way. The workers of FrieslandCampina
Engro Foods were very friendly and adjusting, they gave us more chance to learn about their
plant equipments also.

FrieslandCampina has won three awards in 2019 NFEH awards ceremony for their community
investments and farmer development in the following categories:

• Women welfare empowerment and development

• Community development and services
• Social impact and sustainability
• In 2018, they won Commonwealth Company of the year.

We hope we get more chances further to have such wonderful and informative experiences of
visiting different industries.

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Management Team:
A project “Management practices in organizations” was assigned to students of BBA-III for
academic purpose. The project was consisted to make a report of FrislandCampina Engro Foods
Pakistan Ltd. The students were assigned different roles and responsibilities.

• The project was managed by four students of BBA-III lead by Ms. Nimrta Rani, Ms.
Sunaina Mandhan, Mr. Zahid Ali and Mr. Akram Ali.
• The above most challenging responsibility of leading the whole team was given to Nimrta
Rani who worked very hard to bring the team on single page and spent a lot of efforts for
getting the favorable outcomes of the project.
• Sunaina Mandhan and Akram Ali were assigned the task of jotting down the main points
and relevant data for the project explained by respondent of the company
(FrieslandCampina Engro Foods Pakistan Ltd.). Both of the team members performed
exceptionally well during the interview session.
• Key responsibility of observer during the interview session was given to Zahid Ali who
handled the situation carefully and also applied mind-blowing approach. It was quite
challenging to manage, but he did well.

The management team was responsible for smooth and successful execution of the project.

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Annexure:

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