Fmc United

ACKNOWLEDGEMENT All our praises for ALLAH THE ALMIGHTY, who bestowed potentially upon us to accomplish this present report successfully. With all our sincerity, we express. Our gratitude to the HOLY PROPHET (P.B.U.H) and his fellows, who are the source of enlighten guidance and wisdom for the humanity. I have deep sense of gratitude to our honorable teacher Madam Naima Khursheed and Mr. Kashif (Business Manager FMC UNITED) for his generous guidance for this report. We would also like to appreciate the praise-worthy efforts and the assistance of some people who have kindly helped us out in the completion of this report. They definitely include our parents, teachers and friends.

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EXECUTIVE SUMMARY FMC United Private was incorporated in 1883.When founder john bean created an innovative insecticide spray pump to combat scale, an infestation that was ravaging California's orchards and endangering the livelihood of growers. The marketing division of FMC is mainly concerned with sale distribution, promotion, procurement, finance, human resource management and general administration etc. The skill inventory of the FMC comprises of highly efficient and proficient team of people, which leads to competitive edge with maximum production of pesticide. It is only due to self-driven management of plant that the company is utilizing the plant capacity more then maximum caliber, which has facilitated the company to diversity its business with minimum risk and threats. Company's sales force consists of dynamic and efficient galaxy of people who are self driven and highly motivated to achieve the sales targets. Company's promotion department is striving hard to strength corporation image and brand loyalty. The very department launches two campaigns rabbi and kharif consisting of six months each. The promotion department of company is bit conservation the reason being that company is facing fierce competition. The company is lacking in societal marketing, which is emerging treads of era. FMC due to being in process industry observe the pesticide and spray control while a muddling of autocratic and participative style of management is adopted to achieve the corporative objectives. FMC is got ore competence in technical service department, which not provided only technical assistance but also enhance the brand loyalty and enhance the brand loyalty and assures the establishment of objectives of the company. Its key responsibility is to facilitate the farmers with invaluable suggestion to optimize the use of spray to enhance the productivity. It conducts seminars, village meetings to guide the farmers through the course of difficulties. Planning department is brain of organization that decides the ways to achieve the business level objectives, which are concerned with the SOP's of marketing. The every department relies only on its own channels to gather the information concerned with decision making to minimize the risk of errors. 2

General administration and HR department are overlapping each other; the first ensures the compensation of the employees of the marketing division while the former looks after the employees needs to help them to get the maximum caliber performance department makes sure the smooth sailing of the plant site as well as marketing division. It always manages to register and maintain the list of national as well as international suppliers and vendors. It assures to provide the right things in minimum time with maximum quality. It is exercising JIT approach with minimum lead time so that things may keep on floating well. Company always makes purchase through channel zed ways so that there should not be any risk of embezzlement. The finance department is key department recording all business transactions of the marketing division. It directly reports to the head office of the company, the company has own certain excellent awards in environment protection and employees safety measures. Today, FMC continues changing lives as the innovative force behind industry and agriculture, where our products maintain leading market positions.

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Background of Host Organization

INTRODUCTION OF FMC FMC (Food, machinery, and chemical) is an American based company selling products related to agriculture in Pakistan. On crops like Cotton, Rice, Sugarcane, wheat, Mize, potato, 4

Vegetables. FMC started marketing in Pakistan during 1994 at nine regions. FMC formulated plant in situated at Lahore, where the entire products is formulated and packed for future supply to the warehouses at different regions. This product is then supplied to the market through United Distributors (PVT) Limited. FMC Agriculture products groups: With more then half of our business in international markets. FMC's agriculture products group provides crop protection and pest control products around the world with environmentally sound chemistries and delivery system Necessary to ensure a safe and abundant fool supply. A strong insecticide portfolio, coupled with next generation, herbicides products, reflect FMC's expertise in discovering, developing and formulation state of the art crop protection. In addition, FMC offers specialty products for pest control\, wood protection, public health and hygienic, stored grain, turf and ornamental, animal health, home, and garden. Out strategy for growth in agriculture ourselves as a focused player with a concentration on insecticide, select crops and region FMC Industrial Chemicals: FMC specially chemicals consists of FMC bio polymer, which serves the food, pharmaceutical, and specially in markets: and FMC Lithium, which serves the pharmaceutical and industrial markets. Our success is keyed to having extensive knowledge of customer's applications and working to find new and proprietary solution to their needs based on our strong research and development capabilities and applications knowledge. We have successfully secured and developed low cost sources of key products, and we are competing increasingly around the world, drives by global expansion or our current customers and the potential of serving new customers. Today sales outside of North America have grown to 55% of these combined businesses. The Specialty Chemicals: FMC is recognized around the world as market leader in industrial chemicals. Our success is based on our law cost position; longer term raw material supply, efficacy, state of the art production and strong industrial/market position. 5

The European market for industrial chemicals is sizeable. FMC meets the need of this important market through FMC. From a strong local business in Spain. FMC has evolved into a strong European player, with exports to the Mediterranean area, Middle East and Latina America. Our industrial chemical products play a role in manufacturing products for virtually every industry. The major markets we serve are solid detergents, pulp and paper, and glass. PRODUTS AND SERVICES PRODUCT: A product is one of the most important contingents of 4 P's because it is the thing which company sells to its customers. It's a set attributed, a package of benefits tailored to customers needs here we will discuss what FMC UNITED (PVT) LIMITED offers to customers. FMC UNITED (PVT) LIMITED sells pesticides and spray to customers, which are farmer who apply it to their crops, so as to get batter yields. Pesticides and spray generally, is a commodity and almost all pesticides and spray marketed, by all companies is similar in nature and content. By product classification, pesticides and spray is an industrial product treated as raw material for from products.

PRODUCT ATTRIBUTES: Products attributes are the tangible benefits being accrued from a product these are product quality, features and design. Pesticides and spray (pesticides and spray products by FMC UNITED (PVT) LIMITED) is one of the finest in quality; it is prepared on most modern plant. It is clean i.e. don't have any dust, one value highly favored by farmers. It is on attribute from which farmer judge quality of pesticides and spray has this in absence. 6

PRODUCT FEATURES: Pesticides and spray has product features unmatched by other pesticide and spray. It is easily soluble in water, a quality of goods pesticide and spray even after a year it will retain its quality. While pesticide and spray is known as a perishable commodity even many pesticides and spray become hard after a year in store becoming less soluble in water. Another feature is it does determine of its periling capability. If pesticide and spray become a cake, you can make return it in to pervious shape by hitting hard bag of pesticide and spray once or twice on the ground. These two are some of many reasons, which made the best and most preferred brand in the market. The company pervaded quality pesticides on economic price & its product line the following: SERVICES: The company provided farm advisory services to the servile thousand farmers and contribution in the increase of production & productivity of agriculture sector.

HISTORY OF FMC FMC is a chemical manufacturing company headquartered in Philadelphia, Pennsylvania. FMC employs over 5,000 people world wide, and had gross revenues of US$3.115 billion in 2008. Founded in 1883 as the Bean Spray Pump Company in San Jose, California by John Bean, the company's first product was a piston pump. Bean invented the pump to spray insecticide on the many fruit orchards in the area. In 1928, Bean Spray Pump purchased Anderson7

Barngrover Co. and Sprague-Sells, and changed its name to Food Machinery Corporation, and began using the initials FMC. FMC received a contract to design and build landing vehicles tracked for the United States War Department in 1941. FMC also built the M113 (APC) Armored Personnel Carrier and the Bradley Fighting Vehicle as well as the XR311 at its former facility in Santa Clara, California. The troubled development of the Bradley was satirized in the 1998 HBO movie The Pentagon Wars. In the movie FMC was fictionalized as A.O.C Corporation. Bean also manufactured fire fighting equipment in the 1960s through the 1980s under the FMC and the Bean names. FMC sells chemical products used by beef and poultry processors to reduce pathogens, such an E. coli and salmonella, on uncooked beef and poultry. FMC obtained a patent on a method for sanitizing fowl that has been killed, plucked and eviscerated by contacting the fowl with an aqueous acid solution and maintaining that contact for a time sufficient to sanitize the fowl. FMC changed names again in 1948, becoming Food Machinery and Chemical Corporation. In 1961 the name was changed to FMC Corporation. In the 1980s, 1990s, and 2000s, FMC Corporation began spinning several of its divisions into separate companies, including United Defense and FMC Technologies, and selling its divisions, including the John Bean Company, now a subsidiary of Snap-on.

COMPANY PROFILE

Company Name: FMC UNITED (PVT) LIMITED Legal status: Private Limited Company Registered Office: 8

1-G-II M.A Johar Town, Lahore, Pakistan. Phone: +92-42-111-222-362 Fax:

+92-42-531-4459 E-mail: [email protected]

Managing Director: Farooq Shahid Director Technical& Operation: Mr.M.sarwar Auditors: Shahzad saleem Nasir Ali Legal Advisor: Mr. Rashid A. Malik (Advocate) Bankers:  Citi Bank Limited  United Bank Limited  Alfalah Bank Limited  Habib Bank Limited

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VISION STATEMENT

Improved the quality of life in Pakistan. Feeding the world protecting the health and providing the convenience of life.

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MISSION STATEMENT "FMC United (PVT) Limited is committed Ted to play its leading role in supporting agriculture advancement in Pakistan by providing quality pesticides and allied services to its customers with the passion to excel by setting new goals and taking new initiatives for development of profitable venture."

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Managing Director BUSINESS OPERATIONS HR Manager

Plant Manager

ORGANIZATIONAL STRUCTURE FMC UNITED (PVT) Limited

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R&D Manager

Business Zonal Sales Field Manager Officers

Finance Manager

Marketing Manager

CENTERLIZATION The flow of command is centralized in FMC UNITED (PVT) LIMITED. Basically top management makes all the major decision and there is less directed involvement of thee middle and lower management. The authority flows from top to bottom and less authority and power is delegated. Functions of Different Departments at FMC UNITED There are different departments working in FMC UNITED Pakistan. But I am describing the functions of these departments.  Marketing Department  Finance Department  Human Resource Department Marketing Department

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Marketing division set up in July, 1994 is responsible for the marketing operations including planning, distribution, sales farm advisory services, field warehousing finance and administration. With the commencement of commercial production in June 1995, the company stared marketing its own pesticides and spray under the brand name "TALSTAR" the company markets not only "TALSTAR" pesticides and spray but also export nitrogenous and potash pesticides. The company is also undertaking the marketing of FMC UNITED LIMITED (PVT) LIMITED. The company is fully marked up and capable of taking up challenge of marketing one million tons of pesticides to be produce this plant every year. When FMC UNITED LIMITED (PVT) LIMITED came into the market with its production in June 1995, the other manufactures namely "DAWOOD HERCULARS and NATIONAL PESTICIDES CORPORATION was already well establishing in the market. The brand of the Dawood Hercules was persevered premium brand in Sindh and Central Punjab respectively.

FMC UNITED LIMITED (PVT) LIMITED had to facing tough competition from the banging this competition coupled with the huge surplus of pesticides and spray in the domestic market posed a great challenge of the company in thee initial years. FMC UNITED LIMITED (PVT) LIMITED not only met the challenge by capturing the desired market share but in the process, enhances the brand image of the product "TALSTAR" pesticides and spray which has become a number one brand. during the period 1983 to 1986 when a large pesticides and spray surplus rousted in the country, FMC UNITED LIMITED (PVT) LIMITED pioneered pesticides and spray exports which not only helped in stabilized domestic pesticides and spray but also earned valuable foreign exchange for country. Government of Pakistan deregulated the trade and prices of phosphate pesticides on august 21, 1993.subsequent to this decision FMC UNITED LIMITED (PVT) LIMITED started self imports of these pesticides and spray. Result timely supplies were arranged. Farmers were thus provided with quality product in bags 14

with guaranteed correct weight and this brought about a positive qualitative change in the pesticides business in the country. The marketing division now has the necessary expertise to handle pesticides imports and exports. FMC UNITED LIMITED (PVT) LIMITED believes in selling a program rather than just a product. For this the company has adopted a customer orientation strategy, marketing quality products backed up by efficient and effective support services with emphasis on developing the market through particular and innovative farmer education. VARIOUS FUCTIONS OF MARKETING DIVISION PLANNING DEPARTMANT: Planning department is basically the brain of the company. The cooperative strategy is formulated at the head office of the company while the department planes and formulated concerned with the marketing operations. The department's activities are to develop an efficient management information system (i.e., production, distribution, warehousing, sales, Finance, Technical, Services etc.) and to collect, compile, analyze, and present information relevant to market information. 1. To assist the marketing management in the analysis, planning and monitoring of the marketing operations for the purpose of achieving the FMC UNITED LIMITED (PVT) LIMITED marketing objectives. The detail functions given as under: 2. To produce daily & monthly progress reports for General Manager Marketing and other quarterly ,half yearly and annual report for the MD's coordination meeting and board of directors. 3. Various analyses are carried out to keep management updates. 4. To conduct marketing surveys necessary for marketing planning and analysis 5. Preparation of feasibility reports for new projects. 6. To do long term and short term projects 15

7. Coordination data and preparing presentations material as and when required. 8. To monitor competitors, regions ' sales performance, dealers 'selling capacity, sales campaign and utilization of capital budget. 9. Computerization of industry pesticides data. 10. Compiling information preparing presentation material as and when required. 1. Daily Report: It contains basic daily data and analysis of the data pertaining to: 1Production 2Dispatches to customers & warehouses 3Sales position 4Inventory Level 5Position of order generation 6Pending order status Monthly, quarterly & annual reports not only covered Marketing Division's Achievement for the period but also gave an insight of the pesticides market situation with particular references to competitors.

2. Annual Business Plan: It consists of: a. Operational budget b.

Capital budget

The process of budget preparation starts from last week of June and ends in September by submission of the plan to the management for approval. The detail of activities involved is in the transparency. 3. Analysis: 1Industry situation 2Sales Performance 3Receivables 4Budget Performance 16

5Freight Analysis These analyses are carried out on a weekly basis and reports are sent to GMM to keep him updated and facilitate modification of strategies according to the prevailing situation. 4. Market Survey: For example during 1994 pesticides consumption in the country was law as compared to pervious year. Till the end of third quarter 1994 the decline was over 9 % as compared to the first three quarter of 1993. It was, therefore decided to conduct a field survey with the objective of getting first hand information for determining the factors which impact pesticides consumption. 5. Market Feasibility: This department has developed market feasibility for FMC UNITED LIMITED (PVT) LIMITED. 6. Pesticides Data Book: For the last 12 years planning department is compiling and printing pesticides data book containing impact historical information pertaining to FMC UNITED LIMITED (PVT) LIMITED sales data, pesticides industry and agriculture related data. This book is divided into five main sections: (I) Pesticides off take (ii) Pesticides production (iii) Pesticides imports (iv) Pesticides prices & important data on agriculture (v) FMC UNITED LIMITED (PVT) LIMITED statistics 8. Monitoring: 1Sales Performance 2Sales Companions •

Dealers' Budget

•

Capital Budget

3Competitor's Activities 9. Presentations: 1Management 2Government of Pakistan 3Annual meeting 17

The preparation of these presentations is planning responsibility. They are developed on need basis. 10. Training: Planning chalks out orientation program for the newly indicated officers/internees to acquaint them with the marketing operation of the company planning also arrange for the training of the management employees at "department of Business administration BZU Sahiwal campus." the coordination with the Head Office to select the officers for such training programs. 11. Company Newsletter: News from all the twelve regions, distribution officers Sukker and from different departments of marketing division come to planning where they are compiled & edited and sent to Head Office for publishing in the company 's quarterly new letters.

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FINANACE DEPARTMENT

The finance department 1994, the basic purpose of finance department is collect, monitor and control finance. Its responsibilities and objective have been formulated to ensure attainment of long and short term business plans, compliance with corporate and fiscal regulation and to fulfill internal and external reporting needs. The finance term is composed of qualified and experienced chartered / cost accountant, Master in Business Administration / Commerce and professionally trained graduates. Its personnel are placed at all locations under decentralization organizational structure to ensure effective and continuing participation in all the company activities. The financial position of FMC is very strong and FMC is profitable institution. The operating revenue of the company has increased from Rs.26 Million in 1994 to 100 Million in 2008 Finance department comes under line authority of finance department but also a report to General Manager Marketing (Head of Marketing Department).It is division into two sections. 19

1General Accounting 2Sales Accounting General Accounting: It handles all general record keeping responsibilities of marketing department from distribution of salaries to disbursement of medical bills. It also handles responsibility of maintaining necessary funds and transferring excess funds and transferring excess fund s to head office. Sales Accounting: It is the most important function of finance department. It maintains dealer's account and record all sales made. It tracks all activities right from customer order to making of an invoice and delivery to the customer. It has two sections 1Dealers Account 2Collections Dealers Account: Dealers account section holds all information about dealers. They record how much product a specific dealer has order whether it is delivered or not etc. when a dealer gives order whether on warehouse or for direct shipment from plant, a customer order is made. One of its copies is sent to finance department. When shipment is made, an invoice is prepared its one copy is given to finance department. Actually finance department keep track of every major activities from customer order to shipment advice. Collections: FMC UNITED LIMITED (PVT) LIMITED gives 14% of its products on credit, out of this 12% is secured credit. It gives secured credit mostly on bank guarantees while a small amount is given on basic of inland of credit. FMC UNITED LIMITED (PVT) LIMITED account receivables are very good and it is able to avoid bad debts. They keep track of every recoverable and on cash bank guarantees if recoverable are not cleared.

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Human Resource Department

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HUMAN RESOURCE PLANNING Human resource planning is the process of determining and assuming the number of qualified persons, available at the proper time performing jobs, which meet the need of the organization and which provided satisfaction for the individuals attached with the organization. The personnel department of FMC UNITED (PVT) LIMITED performs this function and set plans to acquire proper and skilled employees for the organization. These plans are set in coordination with the top management and line managers. The HR planning process is following: 1. The personnel department consults with top management in order to determine the goals and objectives of the FMC UNITED (PVT) LIMITED and to get future expansion plans of the top management. 2. After consulting with top management they meet the line manger or unit manger in order to determine to manpower need at present or in the future. 3. Now the personnel department sees whether the current or future manpower need can be fulfilled from with in the organization or not. For the purpose of fulfilled the current or future 22

needs from within the organization .the personnel department keeps up the date record of all the employees. The record kept includes the following information regarding employees:1Name 2Age 3Date of joining 4Position at the time of joining 5Current Position 6Health 7Performance 8Skills possessed by employees, etc. This record also helps the management to determine the manpower strengths of the FMC UNITED (PVT) LIMITED. If the current or future needs of manpower cannot be filled from within the organization then the personnel department looks in the labor market or outside in order to hire skilled employees.

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SWOT ANALYSIS STRENGTHS Stable Market Market of the pesticide spray is very stable now so company can produce higher amount of product and can achieve economies of scale in this the production cost of the company will reduce. Dealership Network FMC UNITED has the loyal dealers. Which gives more important to the products of FMC UNITED. They personally give the product on credit to the farmers. Company also gives them incentive at the year end . Sales Force FMC UNITED has the qualified sales staff. All sales officers having the degree of master in agriculture. In this way they can easily understand the problems of the farmers. So the sales force helps the company in achieving the objectives with their excellent knowledge. Quality Products All the companies which operate in the agriculture sectors tell to their customers that we are providing the quality products but FMC UNITED always giving them quality product. This thing 24

is also proved by the government of Pakistan. Government takes samples of FMC UNITED and proved that all the product are fulfils the quality. Brand Preference Farmers of this country are well aware about FMC UNITED and its products. So when they are going to purchase Pesticides they giving the preference to the company. Every customer who use the product at one it left all the companies and join FMC UNITED. Broad Product Range If the company has the product for every problem then consumer giving them preference on other companies. So FMC UNITED has a broad product range which differentiates it from others. High Production FMC UNITED has the higher capacity of production. That is the biggest strength of the company. WEAKNESSES Sugarcane Crop FMC UNITED has not any product for the sugarcane crop. While the major

competitor

of the company having the all products for the sugarcane. Weediciades and fungicides Company has not any weediciades or fungicides in this time but in the near future company makes a plan to introduce new chemicals of this type. Higher Prices FMC UNITED used the skimming strategy of pricing. So they charge higher then every company in Pakistan. This thing cuts the loyal customer of the company. Distribution Channel Company has very well distributors. Which is the competitive edge for the company but in 25

these days distribution channel is not working well. They distribute the order very late. Broad Field Area Every sales officer has the broad area so he is unable to provide FAS service on time .So they should have be broad sales force to solve the problems of the company. Dealers Incentive FMC UNITED give the dealer incentive at the year end so it is difficult for dealer to continue their business. While other companies give the incentive at purchase. So dealers give more importance to other companies.

OPPORTUNITIES Demand With every passing day demand for the agriculture products are growing day by day. Because every passing day introduce new pest so demand is going to high and high. Chances of Expansion Company has the chances of expand their business. They can produce fertilizer and machinery for the agriculture. They can also introduce solar energy system and the farmer can easily purchase the product of FMC UNITED due to its fame and quality. Joint Venture Company has chances to create a joint venture with Fuji Fertilizer Pakistan or other fertilizer company. THREATS Free Trade Policy Company is affected by many policies of WTO and government of Pakistan. In these polices 26

government remove tax from imports so everyone can import the foreign product which is better in quality. BT Cotton As time passes companies introduce BT cotton which is free of pest. It means pest can not attack on it. So farmers will not purchase the products of FMC UNITED. Company depends largely on cotton crop or if cotton crop is protected from pest then who will purchase the product. BT Corn Seed This seed also creates the problems for the company. Company will be unable to achieve the sales target if the given situation will be occur. Water, Gas and Electricity Crisis These things creates problem for the farmers in the future. India wants to use the whole water of Pakistan in this way Pakistan will be free from water and if water will disappear then light will also disappear. If farmer left the farming then company will not be able to survive.

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MARKETING STRATEGY Segmentation: FMC UNITED divided the whole market into three segments on the basis of agriculture land. They make three types of segments. Upper Class (More then 500 Acres) Middle class (More then 30 Acres) Lower class (Less then 30 Acres) Targeting: FMC United Target the lower class farmers. Because it is easy to satisfy them and they are sincere with their work. They can also target upper or middle class but they thing they are black mailers. They always want to make a deal with the company. So upper class and middle class are less profitable as compare to lower class. Positioning: FMC UNITED used different tools for creating positive image in the mind of target customers. Basically FMC UNITED used pull strategy for attracting target customers. FMC UNITED used different tools i.e. Personal selling, direct marketing, sales promotion and advertising.

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MARKETING MIX STRATEGIES Product Strategy: Company markets all of their products with brand name to build brand equity. While the major competitors use generic names of their products or in the future government ban the generic names so that’s why it is completive edge for the company. In this time some of the products of FMC united have generic name which are shown into the product line. But now company changes that name and turn towards brand name. PRODUCT LINE MACHINES & NOZZLES 1HAND SPRAY NOZZLES 2BOOM SPRAY NOZZLES 3KNAPSACK SPRAY MACHINE PESTICIDES 1ACELAN 20SL-250ML 2ACELAN 20WP-500ML 3AFFINITY 50WP-800GM 4ACROBAT MZ 5ADVANTAGE 20EC 6AIF 40DF 29

7ARRIVO 20EC 8ATRAZIL 9ATRAZINE 10AUTHORITY 11BUPROFEIZIN 25WP 12BESTOX SEC 13BUMPER COTTON 14BUMPER CANE 15BUTACHLOR 16CARTAP 40G 17CASCADE 100C 18CABRIO TOP 60WDG 19CHLORPYPHOS 40EC 20EMMAMACTIN BENZOATE 19EC 21FURADAN 3G 22IMIADACLOPRID 20SL 23IMIADACLOPRID 70WB 24IMIADACLOPRID 25WP 25KUMULUS DF 26MATRIBUZIN 27MUSTANG 380 EC 28NOVASTAR 56EC 29PROFENOFOS 50 EC 30RUGBY 5G 31SHINKAR 50EC 32STOMP 455CS SEED 1SUNFLOWER SEED DK 4040 2FRONTLINE POWER PACK SX 17 Pricing Strategy: 30

In pricing company used Skimming strategy .They charge higher then every company as compare to multi national, national and generic companies. I also attached a pricing analysis in Appendix which shows their pricing strategy. Placing Strategy: FMC UNITED (PVT) has joint venture with UNITED distributor. In Pakistan FMC has only one distributor which is at top position. This joint venture is a core competency of FMC. DISTRIBUTION SYSTEM The primary function of distribution department is distribution of pesticides all over Pakistan, ensuring that at the minimum possible freight cost while maintaining the competitive edge. Following are the company's responsibilities of the distribution department 1. To ensure the effective distribution of all products from United Distribution Limited (UDL) to the dealers network and various warehouse located all over the Pakistan is coordinating with the field. 2. To conduct field surveys at united distribution limited (UDL) from time to time to ensure that the existing company freights are competitive at minimum cost to company. 3. To maintain close liaison with the Head Office Lahore and coordination all matters affecting imported Pesticides, Demigod product, claims etc. 4. To coordinate with N.L.C Rawalpindi for trucks in case of emergency. 5. To maintain all dealer record and information responsible for analysis of dealer performance during rabbi and kharif. 6. To ensure the dispatch and effective distribution of all (imported) pesticides from Karachi port by road and rail. 7. To supervise, guide to concerned distribution staff at Lahore, United Distribution Limited (UDL) and Karachi port by road and rail.] DISTRIBUTION OBJECTIVE  To ship out total production.  Services 240 dealers, 8 warehouse, and customer.  All shipments to be made in cost effective manner.  To keep inventory at plants at minimum levels.  To maintain regional / zonal allocations. 31

Procurement

Production

Distribution

Dealer Ship

Final Consumer

 To rectify dealer complaints.  All dispatch to be on FIFO basis  Adequate and proper warehousing / control.  To ensure prompt handling, good quality packing, correct

weight and timely

delivery of products. Strong distribution system is a competitive edge for FMC UNITED. UDL distribute all of their products into minimum time and UDL also manage the warehouse of FMC UNITED. Company has the regional sales office with the facility of ware house in these cities Regional Sales Offices:  Lahore Sales Office  Multan Sales Office  Rahim Yar Khan Sales Office  Vehari Sales Office  Behawalpur Sales Office  D.G. Khan Sales Office  Quetta Sales Office  Sahiwal Sales Office  Hyderabad Sales Office  Sukhar Sales Office

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Promotion Strategy: FMC UNITED (PVT) used pull strategy to promote their products. Promotion team directly attract and convince the customers by using direct marketing and personal selling. Advertisement and Sales Promotion An Advertisement and sales promotion department has the responsibility planning and execution of all the promotional activities. This department is successfully executing the activities from its inspection because of company's share of market has increased to 9%.It is one of the major forces behind "TALSTAR" pesticides and image of No.1 brand in the market. FMC UNITED LIMITED (PVT) LIMITED promotes its product on almost all type of media other then direct mail. They are 1Electronic Media 2Print Media 3Transit Media In electronic media, FMC UNITED LIMITED (PVT) LIMITED advertises on Television and Radio. T.V Advertising: In television advertising very limited choice is available an case of channels. Only P.T.V available where only P.T.V fulfils FMC UNITED LIMITED (PVT) LIMITED requirements. Target audience is mostly in villages where only P.T.V can reach. Therefore FMC UNITED LIMITED 33

(PVT) LIMITED advertises on P.T.V. Print Media: Most farmers, who are FMC UNITED LIMITED (PVT) LIMITED target audience, are illiterate and therefore FMC UNITED LIMITED (PVT) LIMITED do not run major campaigns in print media but it is advertise on occasions of national importance, so as to enhance its image. Transit Media: FMC UNITED LIMITED (PVT) LIMITED has more then 300 billboards placed in different parts of the country, where FMC UNITED LIMITED (PVT) LIMITED target market is situated. Also it runs close circuit television (CCTV) at airports, railway stations and in trains. FMC UNITED LIMITED (PVT) LIMITED put heavy emphasis on sales promotion to its dealers as well as farmers. Following are the activities take during 1996 for sales promotion Sales promotion. Items 1Calendars 2Key chain 3Garden Parks 4Dairies 5Wall Clocks 6Wallets Sales promotion Material: FMC UNITED LIMITED (PVT) LIMITED use following

promotional material

1Crop Posters 2Crop Literature 3Stickers 4Price Lists 5Mobiles Other Advertising: 1Eid Season cards 34

2Stalls at Exhibition

COMPETITIVE STRATEGIES FAS Services FAS services are competitive edge for FMC UNITED because its competitors only sale their products. They are not giving the services to their customers. So that’s why it is competitive edge for the company. Farmer Meetings: These are the meeting of the farmers conducted in villages and towns. Farmers are explained the latest crop technology to be adopted for getting higher profitable yields. Other farmer related problems like plant protection and oil testing besides many other issues are discussed in these meetings. FMC UNITED LIMITED (PVT) LIMITED crop literature is distributed during these meetings. Normal attendances vary between 50-70 farmers. Special Farmer Meetings These are farmer meetings conducted at Tehsil/Distric level head quarters. The participants in these meetings are progressive farmers and Government/Agri. Related sugar mills officials. Agri related issues are discusses in the on set of rabbi/ kharif season and the numbers of participants are between 150 to 200. Group Discussions: Discussions with small group of farmers are held at the farm levels or at the dealer's shop. Crop related problems are discussed and suggestions pertaining to these problems are advised. Farmer Visits: Farmer's farms are visited and on the sport issues regarding land preparation, soil 35

testing, pesticides application , use of pesticides and many other farmer's related problems are discussed and suggestion are made accordingly. Crop Experiments: In order to carry out applied research about the use of pesticides, crop experiments are conducted by FMC. Pesticides treated treatments are compared with the control plots and the results are shown to farmers.. Sales force Company has a competitive sales force which has excellent knowledge about chemicals and pest with this knowledge they can easily solve the problems related to pest. All the sales officer have master degree in agriculture and some of them having business degree along it. Branding Strategies FMC UNITED use brand names as compare to their competitors. With brand names product can easily get loyal customers. On the previous pages I show companies product line. All the products having the brand name with registration. Competitors have no chance of copy FMC brand name because company has legal right to protect them.

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Business Process Analysis

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BCG Matrix

Cash cows Business units with high market share in a slow-growing industry. These units typically generate cash in excess of the amount of cash needed to maintain the business. They are regarded as staid and boring, in a "mature" market, and every corporation would be thrilled to own as many as possible. They are to be "milked" continuously with as little investment as possible, since such investment would be wasted in an industry with low growth. Dogs charitably called pets, are units with low market share in a mature, slow-growing industry. 38

These units typically "break even", generating barely enough cash to maintain the business's market share. Though owning a break-even unit provides the social benefit of providing jobs and possible synergies that assist other business units, from an accounting point of view such a unit is worthless, not generating cash for the company. They depress a profitable company's return on assets ratio, used by many investors to judge how well a company is being managed. Dogs, it is thought, should be sold off. Question marks Business which has low market shares they do not generate much cash is lie in this segment. The result is large net cash consumption. A question mark has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. If the question mark does not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines. Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share. Stars Business units with a high market share in a fast-growing industry. The hope is that stars become the next cash cows. Sustaining the business unit's market leadership may require extra cash, but this is worthwhile if that's what it takes for the unit to remain a leader. When growth slows, stars become cash cows if they have been able to maintain their category leadership.

This was not difficult for me to find that where FMC UNITED falls in BCG matrix. FMC falls in Stars situation because Stars generate large amount of cash because of their strong relative market share, but also consume large amounts of cash because of their high growth rate; therefore the cash in each direction approximately nets out. If a star can maintain its large market share, it will become a cash cow when the market growth rate declines. The portfolio of a diversified company always should have stars that will become the next cash cows and ensure future cash generation. . Meanwhile close competitor’s buyer and Syngenta lies into question mark position. 39

PEST Analysis Political These factors affected FMC UNITED in every aspect of business.Political factors include areas such as tax policy, labor law, environmental law, trade restrictions, tariffs, and political stability are the factors which effects the business of the company. With every passing day government changes the tax policy which is not good for the business atmosphere of the country. Some companies did not show the complete record of the companies due to save the amount of tax but FMC UNITED is only company in the Pakistan which gives the complete tax to the government. Political stability also effects the over all business of the country which also effects FMC UNITED. Economic Factors include economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decisions. From the previous year interest rate increased which affects commonly all the business in the Pakistan so it also affects the FMC UNITED. Interest rates increased the cost of capital for the company. Exchange rates increase the cost of production. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy. When the prices of every thing going up which affects the purchasing power of consumer so in inflation it is not easy for the company to achieve the desired target of sale. Social Factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. FMC UNITED is a multinational company witch effects the culture of Pakistan it hires employee from home country. These employees wear short dresses so in this way our culture is affected.

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Technological New innovation in the technology affects the FMC .Company has the latest plant in the Pakistan but every day technology changes and company purchase new machinery. Company faces a lot of problem from new pest they spend a lot of on research and development. So for the purpose of doing research they need a laboratory with latest equipments.

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Learning as a student intern

Duties 42

Actually I work with marketing department and also work with finance department so I write my duties separately. Marketing Department After joining the FMC UNITED my basic duty is to join field officer early in the morning for providing farm advisory services. It is very difficult for me because I have no knowledge about PEST and its solution. FMC field officers train me to analyze the PEST. IT is also my duty to attend three types of meetings in different areas. These meeting are.  Executives Meetings  Sales Officers Meetings  Farmers Meetings In these meeting my duties are to attend them regularly and giving them my personal views about planning and achievements of goals. I enjoyed a lot working with sales team because they help me a lot in learning their executive’s gives me answer of my every question. Mr. Abdul Rehman (TSO FMC UNITED) motivates me to give sale call. Visit of the field of the farmers is another task for me .It is very difficult to do. Company needs everyday data of FAS services. But I did not provide the updated FAS book mushawarti book. There are three types of books which should be maintained and human recourse can visit and checks these books any time and any where. These books are.  FAS List  FAS Card  FAS Book  Mushawarti Slip I did all to fulfill my duties and my boss Mr. Kashif is fully satisfied from me.

Finance Department I spend just one week with finance department so I did not learn too much like I learn from marketing department. So my duties in the finance department are to check the expenses of 43

the entire sales officer which are related to sahiwal office. Mr. Rafique gives me first day forms of 22 people. It is very difficult experience for me to calculate these expenses and audit them. After calculating these expenses it is my duty to post them into ledger after that I post them into software which is connected with the net. Accomplishments Marketing Department Companies Business Manger Kashif Ijaz gives me an assignment of pricing analysis of different companies. I complete this analysis with hard work and Mr. Kashif appreciates it. He also gives remarks in my evaluation form about this analysis. I attached my work which I have done on pricing in the annex. Mr. Kashif gives me sales target of 30000 PKR. I achieved this target in one week. Finance Department I spend only one week with finance department during my internship period. Mr. Rafique (Accountant) gives me expense forms of their 22 sales officers and my work is to check all the expenses and calculate them. I achieved this task into four days because it is time consuming work and sales officers having no knowledge about different expenses so they add petrol expenses into CNG and CNG into diesel. Accountant appreciate my work .

New knowledge acquired Marketing Department FMC UNITED is a well reputed multi national company. It performs every business activity very 44

well so it gives me lot of chances to learn practical knowledge. I learn about.  Marketing Strategies  Promotion  Distribution  Pricing  Interaction with upper management  Customer relationship  Dealers Relationships I learn how to make plans and how to achieve them. They divide the yearly target into months and monthly into weeks and weekly into days in this way they can easily achieve the target. During achieving the target they also focus on the next month target or next week target .For example in this time cotton crop is at end or near to end now their sales officers focus on next crop and making new strategies about potato rice and other crops. I also learn that company gives more importance to services which are called FAS services. These services are free of cost so I think their concern should be with sale not with services. But their sales team told me with these services company makes the customers loyal and building a brand equity. FMC UNITED have a strong dealership network. Their dealers are very loyal with the company. Executives of the company say that they can not give them more then 14 % on credit but I personally see that they give 100 % on credit but this opportunity is not for every dealer this is for special dealers who have best business profile. Some upper class farmers personally purchase the entire product for the entire one year crop but they did not give them any incentive on bulk purchase. While other companies give them on special discount or allowance. They use pull strategy in promotion. They directly pull the customers toward their company. Before some years they use both the up the line promotion and below the line promotion but now they use only below the line promotion tool for promoting they products. In the executive I learn about the supply chain of the company. They produce their products personally but some product they also outsource from china. They purchase basic chemical which is use in production they import from china, South Africa and America. 45

My working with this company is improving my knowledge which I also learn from my institute but now I see the practicality of the concepts. Finance Department First of all I learn that it is very difficult to do work with finance department. Finally I learn to manage the expense accounts and posting then to software.

Problem Encountered: I worked one week with finance department that creates problem for me. On the first day Accountant gives me expense accounts. At this time my duty is to calculate all the expenses and audit these expenses of 22 territory sales officers. After four days I completed all expense forms because it is very difficult for me to arrange maintain these accounts . Because accountant has no time to teach me and guide me. Mr. Kashif sends me Arifwala to see the condition of the market and for achieving the target. 46

But the sales team of Arifwala did not accept me because they thinks I am come here for there audit. Companies Business manager gives me target of 30000 PKR sales but he dint gives me any discount or allowance with it so it creates problems for me. How experience impacts on your career: After the internship in FMC UNITED I have a lot of opportunities in agriculture sector. After the completion of my study I can also join dealers network of FMC UNITED.I have also opportunity to join sales team of FMC UNITED as a sales officer. I can also join other generic company easily in the future. In this time I know how to convince the customer of Pesticide Company and hoe to create profitable customer relationships.

Recommendations Over staffing and unbalanced distribution of employees in departments. Like all the government and semi government institutions FMC UNITED (PVT) LIMITED has also excessive staff then required. Moreover, there in uneven distribution, a place where one man can do the job three people are working there. And some place a job of three persons is taken from a man. This uneven distribution results in de-motivation of the employee and gradually his 47

interest in his work decreases the efficiency of worker job is assigned to its caliper to develop his interest in work that increases the out put and decrees the overall cost of organization. In the company there is an unnecessary emphasis on documentation. In transactions a lengthy procedure of paper work is involved that decrease the efficiency and result in wastage of time. It is also absorbed that in some cases the same record is maintained by more then one departments. There are very few programs for career development of the employees. People working in one section or department from years are still with the same knowledge and style of doing job. There not only sharpens the skills of the employee that not only sharpens the skills of the employee and improved output for the organization. Some employees are working in the same department or section since they are appointed. Too much centralization in the organization. Managers at low level are not authorized to make decision even about minor things. They have to consult top management and give justification on small matters. Involvement of top management and reaching at the final decisions is time consuming and some times result in heavy losses. Also man at low level with responsibility and no decision making power gradually lose interest in his job and de-motivation that affect his performance. So there should be delegation of authority up to certain extent that enable manger to take timely decision at the spot with confidence. When they take decision they feel themselves more involved and responsible for the job and in turn their efficiency increases. Due to high rate of unemployment in the country person join those jobs that are against their interest and not according to their caliper. So proper analysis should be done, and explore those employee which can do better what they are currently doing in the organization. They are no strict means to force employees to take safety measures and follow safety rules. Management should take necessary action in implementing the safety rules in the organization.

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After viewing the marketing analysis we see that product quality is not up to standard because management is more is quantity conscious then the quality. While FMC UNITED (PVT) LIMITED with most the plant and machinery giving the stranded product.

Conclusion FMC UNITED is a big name in agriculture sector. Its position is better then other multinational companies which are working in Pakistan. FMC UNITED has a good sales force, good business strategies and strong distribution system. This thing makes the company different from other companies. I spend seven weeks with this company but I see in this company there is no politics between management and employee. All the people who are working with FMC UNITED are hardworking and motivating. But I did not understand why they are focusing on agriculture sector while they have good set up in food and in machinery in America. FMC is basically American company and it is good reputation in America. In Islamabad airport all the machines are belonging to FMC. But they are not wanting sale these machines to local 49

Pakistani customer. I think if they can enter in Pakistan they will be market leader. Also with their machines Pakistan’s economic condition will improve.

Bibliography WWW.FMC.COM ANNUAL REPORT OF FMC 2008 WWW.GOOGLE.COM WWW.WIKIPEDIA.COM FMC MONTHLY NEWSLETTER Mr. Kashif Ijaz

(Business Manager)

Mr. Abdul Rehman

(Sales Officer)

Mr. Sohail Arshaad

(Sales Officer)

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