PEST Analysis Of Engro Fertilizers, Pakistan

Abstract

We can analyze various different factors in a firm's macro environment by the use of the PEST framework. The PEST analysis of current trends in marketing seems to be favouring the overall industry whereas in reality due to shortfall of basic raw material gas Government is unable to provide the necessary facilities for maintaining optimal production of fertilizer in the country. A report by the Daily Dawn indicates that the shortage of urea can cause a loss of Rs. 150 billion to the fertilizer industry and the farmers which will finally lead to enormous economic loss for the country. Engro is one of the biggest companies of Pakistan with a sizeable contribution to the GDP which is severely suffering from the political instability and economic recession which in turn poses threat to the company’s profitability and its survival depleting its capacity to compete under the existing production cost structure in given circumstances. Labour force is the major input of any industry and Engro is facing the crisis of an escalated series of labour-management conflicts. The concern must endeavour to fulfil the labour demands in order to retain them for better future prospects of the Company.

Keywords: PEST Analysis, Engro Fertilizers, Pakistan, Political, Economic, Social, Technological analysis