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Change Management Case Study
Change Management Case Study
Abstract: ENGRO is Pakistan’s one of the top most progressive and growth oriented organization.
ENGRO never forgets where they came from; their history is a part of what they are today. The ENGRO’s
diverse range of business units represents the rich legacy of growth and innovation. ENGRO Chemical
Pakistan is a company incorporated in 1965 under the name ESSO Chemical Pakistan Limited later on in
1978 it was renamed to ENGRO Chemical Pakistan Limited (ECPL), it was a major competitor in fertilizer
market of Pakistan and 2nd largest Urea producer having the production capacity of 975,000 tons per
annum. From that time till now the ENGRO Corporation Pakistan Limited has successfully diversified into
various other sectors and this was done by initiating new projects, going under mergers and acquisitions
and having joint ventures. The purpose of this case study is to determine the change management
practices and processes undertaken by ECPL and how it impacts the overall organization, it also
undertakes the acceptability level of the change in organization and the extent to which employees are
informed and satisfied with the Change Management processes and practices.
____________________________________________________________________________
INTRODUCTION
mainly active in the areas of fertilizer, foods, energy, and petrochemical businesses. Taking back
to 1957 is when its parent company ESSO Chemical Pakistan Limited had discovered the Mari
Gas Field in the Ghotki District; it was that precious discovery which founded the basis for Urea
Fertilizer production. The company was involved in the efforts to modernize the agriculture
sector of Pakistan and this was initiated by being the first producer of a fertilizer brand. In 1991
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
when the EXXON decided to completely divest its fertilizer business worldwide the employees
along with the International Financing Institutions has decided on acquiring the 75% shares of
Exxon. Later in 2002, soon after expanding its fertilizer business the company has decided to
In June of 2009, when the company decided to demerge it from the parent company; the ENGRO
Fertilizer Limited was incorporated as a separate business entity with a vision “To be the premier
Pakistani enterprise, with a global reach passionately pursuing value creation for all
stakeholders”. The organization has expanded and travelled year’s long journey from strength to
strength which is again reflected in their consistency in the financial performance, growth of the
core fertilizer business as well as diversification in the other domains of business. The
headquarters and the company groups were located in Karachi but the production of fertilizer
still took place in the Ghotki District, Daharki. And there the company built largest single-train
urea plant of that time and thus became the first and leading manufacturer of urea in Pakistan.
After successfully running fertilizer business they have diversified into foods industry in 2005
Other than that it entered into the energy and power generation business by establishing ENGRO
Energy Limited in the year 2006 which was again renamed to ENGRO Powergen Limited after
two years. The basic view to enter into this sector was to tackle and solve the energy crisis of
Pakistan as each step taken by ENGRO was a continuous pursuit in uplifting the entire nation in
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
In 2007 another significant step was taken and ENGRO further diversified their portfolio by joint
venturing with Mitsubishi followed by its divestiture of ENGRO Asahi Polymer and this new
Followed by numerous diversification and joint venturing the company has renamed its parent
It is one of the largest conglomerates, Pakistan Public Multinational Corporation which is based
in Karachi Pakistan. ENGRO’s various subsidies involve fertilizers, foods, energy, chemicals,
The objective behind this case study is to get necessary insight regarding the perception, policies
and practices in terms of the change management team (also referred as change agents i.e. top
executives). The research basically is intended to understand and then differentiate between the
theoretical concepts of change management and their practical implication here in ENGRO
Corporation Ltd. Pakistan. This case study research is also undertaken to have an in-depth
analysis on the types of change ENGRO Corporation Pakistan Ltd. have undergone in the past
This case study is basically undertaken to study the change management process in the ENGRO
Corporation Limited, how are they managing the huge changes in this highly dynamic
environment of completion among the industry. This study is particularly focusing on the change
management process as well as those of organizational changes that ECPL as a whole has
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
undergone. The significance of this study can be justified as it is studying the nature of the
changes in the ENGRO Corporation Limited and certain other factors which are aiding in the
change process like Change resistance, role and importance of change agents, resistance towards
change and how to manage it efficiently, and 7S of change model and inspirations of future
changes.
RESEARCH METHODOLOGY
The research design used in this study was descriptive study. The main objective of this study is
to explore, understand and explain the change management practices implemented in the
ENGRO Corporation Limited and to deeply dig in the Change Phases that they have undergone,
in relation to this core objective the research methodology is Quantitative research with closes
ended questions with 5 point LIKERT Scale, as well as some of the open ended questions in
order to understand the nature of the change plus the descriptions of the way it was adopted. The
research questionnaire was adopted and was circulated among the employees of ENGRO
Corporation Pakistan Ltd. (ECPL). The population of this research is employees and the sample
Basically a Google Forms version of the Questionnaire is rotated among the employees of
ENGRO Corporation Pakistan Ltd. included both close ended and some of the open ended
questions related to the change management practices and activities and also about the
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
The McKinsey 7S change model applied in order to better understand the change management
In the fast changing and highly competitive business environment, it is very important to adopt
change management practices in order to gain the competitive advantage; otherwise you will end
up in a dark area where your business will be obsoleted hence no long accepted.
Change management is basically a structured approach in order to ensure that smooth and timely
implementation of change has taken place in organization and also to analyze that organization
has been leveraging from the new change implemented. The main focus is on the impact of
change on wider levels especially on people and the way they as an individual move from the
current stage to the desired state, basically how people react in the transition phases of change.
The change might be of a simple process change or a drastic change like organization-wise
change, it might be planned change or the unplanned changes just like in the COVID pandemic
period there were certain unplanned changes happened in the way organizations operated. On the
other hand there might be departmental changes occurring in a certain department (functional
area) and non in the whole organization. Other than that there might be changes in organizational
structure and if undertaking the strategic changes then it might include the changes in mission,
vision or policies and procedures. As every business organizations are different on the basis of
how they operate so the change is also different for different organizations and roles and
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
responsibilities also vary depending upon how change management practices and projects are
organized.
The scope of change management can only be known once it will be clear that who is
responsible and how things are organized in your change management situation and once these
things will be know it will be easier to evaluate the way in which you will be working with other
people to bring about the change. Just-in-time, a strategic technique in change management can
be used in order to upgrade the flexibility in structure of how organization work while change
implementation.
The ENGRO Corporation Pakistan Ltd. is an organization aiming to focus on the continuous
change as the vision statement of one of the business unit (ENGRO Fertilizer Ltd.) says:
It is obvious from the fact that the organization has an image of continually changing the
dynamics and it is not about only the episodic change. The changes that are introduced in the
organization are to be considered as opportunities for the stakeholders directly concerned with
the company but on the other hand these are considered as threats for the opposing parties.
Business world is evolving at a very fast paced now then it was in past, the business environment
has become highly dynamic and if the organizations need to survive and flourish in this
environment then they need to adopt to change management practices, change management
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
In ENGRO Corporation Pakistan Ltd, the change was adopted from the day it was renamed from
EXXON to ENGRO (Energy for growth) from being the first producer of Urea to introducing the
new plant for urea production from the overseas, to diversifying in the wider ranges of the
sectors be it foods, Energy, Petrochemical or the fertilizers there is no stone untouched by them
in their pursuit to grow and develop the quality of life of the individuals living in Pakistan.
Pakistan, being an agricultural country have abundance of agriculture what ENGRO did was to
empower them at first because agriculture is the primary source of raw material on the basis of
which other industries ran, by providing the farmers training about the new technologies in the
field of agriculture to equipping them in order to increase the yield they have completely
transform the agricultural field and them diversified in to various other sectors and now ENGRO
In order to change there is always the need to break the old system and its boundaries in order to
welcome the new changes and to do so organizations need to unfreeze the old structure, the
mindsets of the individuals, and over all the policies and practices in order to mold them in to the
new ways of thinking and undertaking the tasks. Whenever there is a change in any organization
• Drivers of change
• Implementation of strategy
Drivers of Change
• Competition among industry
• Technological advancements
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
• Market gap
➢ Unknowingly making the changes which leads to the problems in other areas
➢ Culture of distrust
➢ Fear of failure
➢ Lack of communication
➢ Available resources not sufficient enough to implement the change in processes and
practices
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
➢ Strategic change
➢ Technological change
ENGRO has undergone various strategic changes one of which is diversification, joint venture,
merges and divestitures. Other than that ENGRO has undergone certain technological changes
by partnering with various technologies oriented companies in order to uplift and upgrade the
Alongside, it has gone under various structural changes one of which was restructuring the
marketing division to a whole new structure with major changes in its hierarchy and control
structures. The details regarding each of the major change approaches in discussed in the below
section.
characteristics of the business like responding to new market threats and opportunities. The
responsibility to make this change mainly lies with upper management of chief executive officer
of the organization. The main part of strategic change is basically concerned with creating a
certain strategy for business and then doing the required changes to it. The strategy is defined as
a long term plan or path way to achieve the goal of the organization.
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
Changes are hard to predicted and controlled that is the reason why organizations must be
prepared for each kind of scenarios i.e. best scenarios or worst scenarios. For acquiring the
durability of the company there is great need of strategic changes to be incorporated in the
company. If any company is failing to incorporate strategic changes in the organization then it
will question their survival and may be pushed out from the industry.
The strategic changes involve diversifications, joint ventures, mergers and divestures as a
defensive strategy.
The diversification may be related or unrelated. In terms of ENGRO it has undergone unrelated
diversification as in the two domains of ENGRO Chemical and ENGRO Foods and in the each
domain it has further demerged in to various industries which again related diversification.
ECPL is the organization continuously striving for the change in their structure, process,
operations or the strategies of the organization. ECPL started as a fertilizer company and soon it
diversifies in to larger domains and now became the largest conglomerates among the whole
world. Be it foods, petrochemicals or sustainable sources of energy ENGRO has left no stone
unturned in its pursuit to build a greater future of the country and aiming to provide quality of
life to its individuals. The questionnaire survey addressed this change by letting the respondents
following the philosophy of diversification. Due to this it has been operating its business in
different sectors and in 2005 it entered into the foods industry this was built on UTH (Ultra High
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
After successful growth in the foods industry they have gone under another strategic change i.e.
they announced a merger with Friesland Campina by going under an agreement of selling up to
51% of its shares to ENGRO Foods Ltd. As a result they have become the partners in the
The management of ENGRO Foods Limited is believing that he major role is played by the
change agents in the timely and successful implementation of the organizational as well as
change or strategic alliances with Friesland Campina corporation which is an outside of the
organizational change.
ENGRO Foods Limited has undergone various changes at various levels of its life. Some
changes have the diagnostic nature it includes change in the top management of the organization
or changes in the capital structure. Other than diagnostic nature there is also some changes which
are of dialogic nature like altering the product portfolio, o making the significant changes in the
contemporary projects under ENGRO Foods Limited one of the projects are coming under the
name of TARANG. This subsidy of ECPL is also continuously evolving in to the new and
changing dynamics of the industry and this is because of the successful change management
practices undertaken in the organization and their successful implementation. Hence it can be
concluded that there is successful change management process in the ENGRO Foods Limited in
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
Technology is highly dynamic aspect of today’s world, it has took over the entirety of the each
domain of life and hence the business. Organizations today are highly technologically advanced
business cannot even survive as the need of the customers are highly change overnight and
without being updated it is difficult for an organization or business to meet its obligations and
ENGRO Corporation Limited has initiated a platform called “new age” which is basically a
provider of tech services with a huge global outlook and presence worldwide through this new
change in its technology domain ENGRO is enabling clients in order to scale up the demands of
The survey was conducted from the Employees of ENGRO Corporation Limited and the survey
results sows that 25% of the employees strongly agreed and 50% agreed that there are
65% of the respondents were strongly agreeing that our company and its employees are highly
tech savvy i.e. they are highly informed and updated regarding new technologies introduced in
the organization in order to increase the efficiency of the work processes. However 5% of them
also remained neutral with this statement. 30% of the employees agreed to the above statement
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
and hence it can be concluded that employees with in ENGRO Corporation Pakistan Limited are
highly informed and updated with respect to the technology needs of the organization.
There were several technological advancement initiative taken by the ENGRO Corp this
included signing a digital MOU with General Electric (GE). ENGRO entered in to an agreement
for the development of industrial software application which entails that Inbox Business
Technologies should be developing the applications for the Fertilizer, Dairy, and captive power
segments for them to effectively work and perform the business operations in a timely manner.
ENGRO is remaining up to the mark in its commitment to further develop the industrial sector
by introducing tech-platforms that can further their expertise in the particular domains.
As it is clearly known from the statistics that Pakistan lies at the 4th number as a milk producer
all around the world, it has 36 million tons of annual production and that too from farmer
households of a total of 8 million, from this it can be concluded that country’s per capital milk
consumption is around 200 liters, so overall milk industry of Dollar 1.5 billion provides milk as
But this huge industry is facing some problems in their management of livestock and in the yield
improvement sector. It is the firm believe of experts that if these operational efficiencies will be
improved that it will result in higher economic vale all around the globe.
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
It the packaged milk sector recently ENGRO has gained a market leader status after having a
tough competition with World’s giant nestle. This is because of the operational change that the
company has undergone. They started to directly procure the milk from the farmers excluding all
the subsidiaries. As in old system there were huge involvement of middleman and there were a
lot of number of frauds and treacheries also late payments which resulted in farmers getting short
The major concern of ENGRO was high quality procurement as milk was travelling 300 KMs to
reach at the processing area. And it was only possible when the payments frauds reduce. In doing
so ENGRO launched a network by the name of EMAN. It highly improved their productivity in
the operations.
This was an automated value chain project launched by ENGRO in 2009 whose meaning in Urdu
is faith. As it was an initiative to reduce the frauds and negative practices that were hindering the
operational efficiency of the company. The basic transformation was that ENGRO actually
without involving any middle man and at a time the payment were transferred by the help of strip
card.
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
Once the card was swiped whole information of the farmer appeared all the back account details
were visible and once the milk has been collected the payments were transferred to the registered
accounts. There was less involvement of the physical cash hence less number of frauds.
In a view to develop the ease for farmers the ENGRO partnered with different
telecommunication companies in order to install data SIMs in the remote areas of Pakistan.
Through the smart card the farmers could also ask for help in various issues like seeking help for
the unwell cattle and loans etc. this initiative was a great help in order to eliminate the
After this initiative many farmers were interested to do business with ENGRO. And as
ENGRO’s initiative is to turn the quality of life the same was implemented here, the employees
were become aware of the life of farmers as there was a direct relation of the employees with
farmers so in those collection centers they were able to educated farmers as well in order to make
them capable of enjoying the better quality of life and earn through better sources of income for
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
Statistics
Familiarity With
ID Job Title Work Experience Job Status Change
N Valid 20 20 20 20 20
Missing 0 0 0 0 0
Mean 10.50 2.00 3.35 1.15 1.05
These are the demographics of the respondents described according to their frequency.
FAMILIARITY_WITH_CHANGE
employees of ENGRO) were aware of the term change management. The total number of
respondents was 20 out of which 19 answered to yes. This suggests that organization has been
having a close exposure of change to their employees. They were well aware of the change
practices in their organization. This was fruitful in determine the whole change management
JOB_STATUS
Cumulative
Frequency Percent Valid Percent Percent
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
WORK_EXPERIENCE
Cumulative
Frequency Percent Valid Percent Percent
JOB_TITLE
Cumulative
Frequency Percent Valid Percent Percent
Change_Vision_1
There are logical reasons for the change which are visible and the goals are transparent
regarding change management has been clearly communicated. Are the employees really aware
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
of the change vision? This suggests that whether the organization is on a single path or not. The
results suggest that 65% of the respondents agreed strongly to this statement. With this view it
can be said that there are maximum employees who were communicated well the vision of
change management.
Change_Vision_2
the change in ENGRO is dynamic initiative with flexible timescales and deliverables
Change_Vision_3
Change management is considered an essential leadership competence in our organization
Cumulative
Frequency Percent Valid Percent Percent
Change_Resistance_1
change initiative creates resistance which has to be managed
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
Out of 100 percent, 70 percent of the respondents agreed that there is always resistance while
adapting to the change situation. However it is the responsibility of the management staff to
tackle these resistances in order to better leverage the organizations from the change process.
Change_Resistance_2
Conflicts within change process are looked for and try to be managed
Cumulative
Frequency Percent Valid Percent Percent
Change_Resistance_3
Conflicts regarding change implementation are avoided
Cumulative
Frequency Percent Valid Percent Percent
Change_Resistance_4
the direction of change management is influenced by resistance
Cumulative
Frequency Percent Valid Percent Percent
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
Technological_Change_1
There are continuous improvements in the technologies
Technological_Change_2
We are always up to date with the recent and updated technologies
Technological_Change_3
We are always provided with training in order to adapt to the technological advancements in ENGRO
Cumulative
Frequency Percent Valid Percent Percent
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
Technological_Change_4
Our company and its employees are highly tech savvy
Cumulative
Frequency Percent Valid Percent Percent
Technological_Change_5
Our company and its employees are highly adaptable to the new technology and its upgraded
versions
Cumulative
Frequency Percent Valid Percent Percent
This particular statement has been proving that whether there is continuous change in the
ENGRO, to which the extent of relationship was checked, the 60% of the employees were
strongly agreeing to this statement. On the other hand 10 percent simply agreed over the
statement. We are always up to date with the recent and updated technologies this statement was
agreed by 75% of the respondents. This proved that ENGRO has been a conglomerate which is
continuously changing for the betterment of the employees and for the nation as a whole.
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
Strategic_Change_1
We are informed about the changes in the strategies of the organization
Strategic_Change_2
There was diversification happened in our organization’
the 45% of the respondents agreed that they were informed about the changes in the strategies or
There was diversification happened in our organization this statement was favored by 65% of the
respondents it suggested that respondents were well aware of the strategic changes taking place
at ENGRO.
Mission_Change_1
The mission of our company has transformed
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
Mission_Change_2
There are significant changes in the vision communicated around the organization in present or
past years
RECOMMENDATIONS
According to the study and the analysis conducted on the frequency of the responses over the
change management process and practices in the ECPL, the 7S of change model has been
suggested that actually fits best for this particular organization in terms of the number of
Moreover the whole organization is well integrated; it suggests that the whole ENGRO is
working for continues growth and changes in order to basically work on improving the quality of
life of individuals of Pakistan. So there is high need for the organization to develop a 7S model
of Change in order to easily keep a record of the changes taking plan in the organization as
whole and also among the various subsidiaries along with this model we can incorporate 5 star
model of change which can combine to form a Hybrid Model of Change which is given below:
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
Strategy The strategy changes that ENGRO has Strategy: more focused towards
Planning processes
initiatives
technologies
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
Style Participative
Decentralized
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
Teamwork focused
CONCLUSION
ENGRO “Energy for Growth” one of the largest conglomerates in the world which stated off
firstly in the domain of fertilizer business later became world’s largest producer of urea
afterwards first time introducing urea power plant in Pakistan. After successfully running the
Since the inception of ENGRO Corporation Pakistan Limited it has come a long way stated off
as fertilizer business and marketing company, then further demerging in the largest and
Change management is of the utmost significance to the ECPL as their vision and mission has
articulated the importance of change which is deeply rooted in their company values.
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
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Fazal, O., & Kanwal, S. (2020). Managing the Change in a Dynamic? Environment: A Case
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Gul, I., Bukhari, S. F. H., & Rizvi, A. (2015). Effect Of Organizational Work Climate On Job
Satisfaction: An Empirical Study Of Engro Foods Ltd Pakistan. IBT Journal of Business Studies
(JBS), 2(2).
Langroodi, B. P., & Staub-French, S. (2012). Change management with building information
Kuipers, B. S., Higgs, M., Kickert, W., Tummers, L., Grandia, J., & Van der Voet, J. (2014). The
1-20.
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Change Management Strategy: A Case Study of ENGRO Corporation Pakistan Limited
Waddell, D., & Sohal, A. S. (1998). Resistance: a constructive tool for change
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