SWOT is the acronym for the internal strengths and weaknesses of a firm and the environmental opportunities and threats facing the firm. SWOT analysis is a technique that is easy to use for managers to get a quick overview of a business’s strategic position. (Cathy H.C. Hsu, 2001)
Limitations:
The PEST analysis is a framework that is used to scan the external environment in which a company operates. PEST is an acronym of the following:
Political factors
Economic factors
Social factors
Technological factors (www.valuebasedmanagement.net)
Limitations:
Company history and profile
FFCL was a joint venture between Fauji Foundation and Haldor Topsoe A/S of Denmark. The company was incorporated in 1978 as a private limited company. The company’s key activities are to produce, purchase and market fertilisers and to invest in other fertiliser and chemical manufacturing operations. (www.wrightreports.ecnext.com).
FFCL started production of urea on a commercial basis in 1982, with annual capacity of 570,000 metric tons. The production capacity of the existing plant increased to 695,000 metric tons through De-Bottle Necking program. Production capacity was further enhanced in 1993 by establishing a second plant with an annual capacity of 635,000 metric tons of urea. (www.ffc.com.pk)
SWOT
Strengths
Weaknesses
Opportunities
Threats
PEST analysis
Political
Economical
Social
Technological
Conclusion
FFCL is a growth-oriented leading fertiliser company in Pakistan with highest market share and its focus is to deliver performance through excellence in the fertiliser industry by utilising its strengths. By using them wisely the company wants to maximise returns to its shareholders and provide optimum value to all stakeholders. There are some weaknesses, like lengthy hierarchy, that can create administrative problems. Through exploring the opportunities, the company is trying to sustain production through the application of innovative technology to obtain maximum productivity in the presence of curtailment of gas by the government for longer periods. However, FFCL also takes measures to mitigate the threats that it faces. However, due to a shortage of gas in the country and new urea plants, further expansion and growth opportunities for the company are limited in the production of urea.
After analysing the political, economic, social and technological factors it can be concluded that the external environment of the country is highly compatible with growth in the fertiliser sector. There are some fears but the strong performance of FFCL along with other companies in the fertiliser sector is expected to continue in view of rising DAP and urea prices, along with substantially higher demand for fertilisers from the agricultural sector. By providing good quality fertilisers and services to its customers and by having the passion to excel, take on new challenges, set fresh goals and take initiatives for development of profitable business ventures, FFCL is committed to play its vital role in industrial and agricultural advancement in Pakistan.
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