N Nouraiz Saleem

NOURAIZ SALEEM N

A 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. e I have deep sense of gratitude to our honorable madam Rizwana Hameed for their generous guidance for this report. We would also like to appreciate the praiseworthy 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 f friends.

Table Of Contents Page # Acknowledgment Introduction Vision of FMC Mission of FMC History Company profile Introduction to FMC Marketing mix Product price place Promotion Analysis Studies ENVIORNMENTAL ANALYSIS PEST ANALYSIS SWOT ANALYSIS SUGGESTIONS RECOMANDATIONS C CONCLUSION

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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.”

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."

H HISTORY 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. r 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. d 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 spry 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. o 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. v 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. c 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. m 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. t 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. a

COMPANY PROFILE C Company Name FMC UNITED (PVT) LIMITED Legal status Private Limited Company Registered Office 1-G-II M.A Johar Town, Lahore, Pakistan. Phone: +92-42-111-222-362 Fax: +92-42-531-4459 E-mail: [email protected] E 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 Regional Sales Offices

Lahore Sales Office Multan Sales Office Behawalpur Sales Office D.G. Khan Sales Office Sahiwal Sales Office Sukhar Sales Office

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, wheat, Mize, potato, 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. STRUCTURE OF FMC UNITED (PVT) LIMITED 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. FMC AGRICLTURE 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. MARKETING MIX • • • •

Product Price Place Promotion

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 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 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. 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: PRODUCT LINE                          

HAND SPRAY NOZZLES BOOM SPRAY NOZZLES KNAPSACK SPRAY MACHINE ACELAN 20SL-250ML ACELAN 20WP-500ML AFFINITY 50WP-800GM AIM 40DF 20 gm ARRIVO 10EC 250ml ARRIVO 10EC 1 Liter ARRIVO 10EC 5 Liter ARRIVO 10EC 20 Liter AUTHORITY 150 ml AUTHORITY 600 ml BUMPER COTTON 1 Liter BUTACHLOR 1 Liter BESTOX 5EC 250 ml BESTOX 5EC 1 Liter CHLORPYRIPHOS 250 ml CHLORPYRIPHOS 1 Liter EMAMECTIN BENZOTE 400ml IMIDACLOPRID 25WP 250gm KUMULUS DF 500 gm METRIBUZIN 250 gm METRIBUZIN 1kg METRIBUZIN 25kg MUSTANG 380EC 500ml

BCG MATRIX

PRICE Simply defined, pricing is the amount of money charged for a product or service. Price is only element in marketing mix that produces revenues. All other elements represent costs. There are many factors that affect the pricing policies of the company: Regarding price of the product FMC UNITED has well set policy. The price of the product remains same throughout the country. The price that is charged includes also the distribution charges. PLACE 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 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. 3. 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. 4. To maintain close liaison with the Head Office Lahore and coordination all matters affecting imported Pesticides, Demigod product, claims etc. 5. To coordinate with N.L.C Rawalpindi for trucks in case of emergency. 6. To maintain all dealer record and information responsible for analysis of dealer performance during rabbi and kharif. 7. To ensure the dispatch and effective distribution of all (imported) pesticides from Karachi port by road and rail. 8. 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.  To rectify dealer complaints.  Prompt complication discharge of vessel-imports  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.

PROMOTION ADVERSISMANT AND SALES PERMOTION 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  Electronic Media  Print Media  Transit 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 a 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 (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 Calendars Dairies Wall Clocks

SALES PROMOTION MATERIALS FMC UNITED LIMITED (PVT) LIMITED use following promotional material  Crop Posters  Crop Literature  Stickers OTHER ADVERTISING:  Eid Season cards  Stalls at Exhibition

ANALYSIS STUDIES      

ENVIORNMENTAL ANALYSIS PEST ANALYSIS SWOT ANALYSIS SUGGESTIONS RECOMANDATIONS CONCLUSION

ENVIORNMENTAL ANALYSIS Three major dimensions of changes are important to be viewed in depth for the environmental analysis of pesticides industry in order to make strategic planning .These dimensions included the changes in the agricultural sector, changes in the competitor activities and changes regarding the economical environmental external to the industry. The following figures shows that the contribution of the agricultural sector to the Gross Domestic product of the country Contribution of Agriculture to GDP 2004-2005 2006-2007 2008-2009 26.33% 26.33% 25.55% This means that the farmers are not having increasing profit and they are no more interested in future expansion of their activities due to tight financial contribution. On the other hand the awareness about the balanced use of pesticides, betterment of irrigational network, introduction of more mechanization and improved marketing and infrastructure facilitates have created opportunities to expand and flourish the pesticides market. MAJOR Major      

COMPETITORS Competitors of FMC UNITED are as under: SYNGENTA BAYER CROP SCIENCES DOW DUPONT ICI

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AURIGA ALI AKBAR GROUP

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JAFFAR BROTHERS

The local importers activities and the foreign exporters have also accelerated their selling programs and are willing to capture the market shares. Especially in the coming few years, when there will be no barrio to the international trade, to plan with international perspective has become highly essential. PEST ANALYSIS  POLITICAL AND LEGAL ANALYSIS  ECONOMICAL ANALYSIS  SOCIAL ANALYSIS  TECHNOLOGIGAL ANALYSIS SOCIAL AND CULTURAL ENVIORNMENT FMC UNITED is very much committed for the welfare of the society first of all by its products and its human resource policy secondly by showing profits and making Pakistan economically strong .FMC UNITED has developed its own culture by taking the following steps:  The company has built a model township for its employees at this remote location, which consist of residential accommodation along with allied facilities.  In caring for the community in health ,education, environment and sports, FMC UNITED following its key objective: “To use the skills, energies and technologies in building the image of the company, that market its employees to contribute towards society in way and enhance its image as a leading Pesticides Business company in Pakistan.” TECNOLOGICAL ENVIRNMENT FMC UNITED is expanding into new dimensions of technology, increasing production and setting up new projects to ensure a bight future and stable economy for the country. Following are the main technological steps the FMC UNITED is pursuing  Importing the test technology.  Generating revenues for the country.  Providing technical assistance to the farmers.  Producing Pakistan’s finest pesticides and spray. FMC UNITED has made its all plants technology sound and motivates the other industrialists to use state of art technology for the quality production and for the sake of survival in the international market.All the steps the FMC UNITED has taken in direction of creating STAE OF ART culture in the technological field along with other. POLITICAL AND LEGAL ENVIORNMENT Following are the some of the lines of Federal Commerce Minister in which the clear emphasis of the Government can be seen. “Clear objectives for this year are”  Achieved our export forecast of $15.1 Billion.  Continue previous year’s objective of greater value.  Addition and diversification of products and markets.  Reduce anti-export bias and improve the export culture.  Achieve greater market access.

Moreover the following steps the Government has taken in the recent past for the betterment of production for the pesticides industry .Deregulation of pesticides and spray business coupled with duty free import of plant and machinery, tax holiday for specification period and feedstock subsidy for 10 years has helped the country in doubling pesticide production capacity from 2.2 million tones to 4.3 million tones in the country. The GDP policy has helped in increasing indigenous supply of pesticides and spray at a lower cost and also reducing dependence on imports. Since 1990 an investment of over one billion Dollars has been made in the sector. SWOT ANALYSIS    

SRTENGHT ANALYSIS WEAKNESS ANALYSIS OPPRTUNITIES ANALYSIS THREATH ANALYSIS

STRENGTHS  FMC UNITED (PVT) LIMITED has a very stable pesticide and spray market.  FMC UNITED (PVT) LIMITED is market leader, its share is 9% no competitor is any where near this.  FMC UNITED (PVT) LIMITED has a strong dealer ship Network and a large sales force to cater to its needs.  FMC UNITED (PVT) LIMITED produces best quality Pesticides and spray.  FMC UNITED (PVT) LIMITED owns three mega plants with Central location.  Its brand is preferred on others.  Board production range.  No deceptive & unethical practices.  Top player of pesticides business with max production capacity  FMC UNITED (PVT) LIMITED captures 9 % of the pesticides and spray market of Pakistan.  Core competence in distribution with the largest distribution network.  FMC UNITED (PVT) LIMITED owns three mega plants with Central location WEAKNESSES  Because of high share in total production, it is allotted more of imported pesticides that sell slowly.  Its price is higher then of competitors.  Monetary sensitiveness to foreign exchange exposure  Dependence on imported feed stock, supplies and special repair maintenance faculties  Limitations in meeting up the demand of granular pesticides.  Too much centralization pesticide control effect timely decision making.     

Sluggish promotion department. Need to focus on sugarcane crop. Require few weediciades and fungicides precuts. Need improvements in distribution channel? Increase sales team up to hundred (100) officers currently it is survey.

OPPORTUNITIES  

Demand of pesticides and spray is growing very rapidly. Good chances of expansions.

 All other type of pesticides are imported, while a related Company (FJFC) will market its D.A.P pesticides through FMC UNITED  Efficient as well as apt sales promotion and dynamic Advertisement.  Proper placement of warehouses  Great opportunities for joint ventures.  Quality should be improved gradually with the result and trends in market? May utilize the word of month influence by giving more benefits to dealers.  May diversify the business in allied services may be cost leaders by cutting down the unnecessary expenditures. THREATS     

Any sharp decline will heart it the most. A free trade policy of WTO is major is a major threat to the company. Threat of forward integration by FJFC. Threat of water and gas crisis. Threat of entry of new competitor especially that of Middle East.

SUGGESTION AND RECOMMENDATIONS Improper Employees Distribution 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 than 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 demotivation of the employee and gradually his 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. So there is need to do the proper and well planned task distribution among the employees. The company should first analyze the expertise of the employees then it should take the complete analysis of the work then the company will be in a position to assign the duties to the employees in such away that the above mentioned hurdle may remove. Unnecessary Documentation Burden 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. The task of documentation should assign to only one authority and this authority will be held responsible to keep the records of documentation. By assigning this task to a specific authority not only the time will be save but also the cost which the company spend in duplicating the record will be save. Absence of Career Development Programs 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. The company should exert forces towards the enhancement of expertise and knowledge of the employees so that they may show their abilities. It is not necessary to engage some outsider for conducting such programs to whom the company will have to

pay. Rather the may have some well qualified and experienced employees who can perform this job bitterly. So there is need to plan it properly if once it planned the company will not bear any extra expenses. High Centralization 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. It is not the case of just FMC rather more than 70% of companies in our country are facing this problem where there is high centralization even very minor affairs are discussed and settled by high authorities. So there is need not too much but some authorities to the employees which will give many advantages to the company in return. If it done then the employees will be in a position to take action or decision in case of some unusual circumstances. 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. Employees Hiring 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. HRM Department should give strength so that they may choose the most appropriate employees so that they may give the maximum benefits to the company. Wrong selection of employees just increases the burden on the company. Improving the Safety Measures They are no strict means to force employees to take safety measures and follow rules. Management should take necessary action in implementing the safety rules in the organization. The only way to convince the employees to be conscious about their safety during the work is conducting the awareness programs time to time. The programs should visually designed so that the uneducated employees may also understand them easily. Product Quality Improvement 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. As the company is still competing with very strong and well reputed competitors so there is not too low assumption standard of the product but the quality enhancement efforts are absent. So there is need to formulate a team of quality control and enhancement which may held responsible for frequent changes and improvements in the products. CONCLUSION FMC UNITED is 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. FMC is basically an American based company and good reputation in America. But they are not entered in Pakistan as in America if they do so they will be the market leader in Pakistan.

REPORT DATA REFRANCES 

MANAGEMENT REPORT OF FMC UNITED

 MARKETING REPORT BY KASHIF IJAZ (Business Manager FMC UNITED Sahiwal Region)   

TERM REPORT BY ABDUL REHMAN (Sales Officer FMC UNITED Sahiwal Region) WWW.FMC.COM..PK WWW.GOOGLE.COM..PK