Engro Case Study

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ASIAN JOURNAL OF MANAGEMENT CASES, 7(2), 2010: 135–155 SAGE PUBLICATIONS LOS ANGELES/LONDON/NEW DELHI/SINGAPORE/WASHINGTON DC DOI: 10.1177/097282011000700204

ENGRO CHEMICAL PAKISTAN LIMITED—RESTRUCTURING THE MARKETING DIVISION
Anwar Khurshid Muddassir Shafique Chaudary
This case describes the restructuring initiative undertaken to change the forty-yearold structure of the marketing division into a more flexible and rewarding set-up. Towards the beginning of 2008, Khalid Mir, General Manager, Marketing, at Engro Chemical, realized that significant changes were needed in order to address major issues the company was facing in terms of employee turnover, poor inventory control, low market development and sub-optimal merchandizing efforts
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Engro had also successfully diversified into various other sectors through new projects, joint ventures, acquisitions and mergers (see Exhibit 2 for a list of Engro’s subsidiaries).

1

Engro is an acronym for ‘Energy for Growth’.

136 ANWAR KHURSHID AND MUDDASSIR SHAFIQUE CHAUDARY

ASIAN JOURNAL OF MANAGEMENT CASES, 7(2), 2010: 135–155

ECPL’s main production facility was located at Daharki in upper Sindh, near the Mari gas fields. This plant had increased its production capacity nearly sixfold since its inception. The latest expansion plan which would be operative in the year 2009 would increase production by another 1.3 million tonnes. This $1 billion project was estimated to bring Engro’s share of total domestic production capacity up to 32 per cent.

CULTURE
Engro Chemical was committed to supporting its culture through policies and administrative frameworks that promoted open communication, maintained employee and partner privacy, and assured employee health and safety. More than 700 employees brought their expertise and dedication to the workplace. According to Mir, ‘[a]11 employees are valued and their inputs and views are given significance, which builds a friendly environment within the organization, independent of any barriers in communication.’ Such an open environment had a positive impact on employee morale and their willingness to continue working in the organization. Engro’s safety, health and

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