Internship Report On Nfml 213r65

COMSATS Institute of Information Technology

National Fertilizer Marketing Limited

Internship Advisor Name: Mr. Shumail Sarwer Designation: Lecturer, Department of Management Science COMSATS Institute of Information Technology M. A. Jinnah Building Defence Road, Off Raiwind Road, Lahore E-Mail: [email protected] Tel: +92 (42) 111-001-007 Fax: +92 (42) 99203100

In The Name of

ALLAH

Most Merciful and Comionate the Most Gracious and Beneficent who gave me ability and resources to accomplish my task.

ACKNOWLEDGEMENT

All praise to Allah Almighty, the most merciful and comionate, who gave me skills and abilities to complete this report successfully. I am grateful to my parents who are a source of encouragement for me throughout my life and from beginning to the end of this report. I am thankful to all my staff of NFM Lodhran branch. I found everyone very co-operative and helpful for providing me the theoretical as well as practical knowledge about the functions and operations of the institution.

I express my greatest gratitude to my kindhearted Supervisor (Manager Operations) who was the Person mad me able to write this report. His enthusiasm shows the way forward to me to achieve this success and who kept me in high spirit through his appreciation. He helped me a lot each time I went up to him. AHSAN ALAM

BBA (Hons) COMSATS IIT Lahore.

Session 2009 - 2013

Table of Contents S.NO.

Chapter No.1

Topic

Page No.

Acknowledgement

iii

Executive Summary

vi

Introduction to Organization

7

1.1

Mission

7

1.2

Vision

7

1.3

History

7

CHAPTER No.2

Organizational Chart

9

CHAPTER No.3

SWOT ANALYSIS

13

3.1

Strengths

13

3.2

Weaknesses

13

3.3

Opportunities

13

3.4

Threats

14

Four P’s

14

4.1

Production

14

4.2

Place

14

4.3

Price

14

4.4

Promotion

15

MARKETING STRATEGY

15

5.1

Targeting

15

5.2

Positioning

15

CHAPTER No.6

BUSINESS PROCESS ANALYSIS

15

CHAPTER No.7

WORK AS INTERNEE

18

CHAPTER No.4

CHAPTER No.5

7.1

Duties

7.2

General Work

18

EXECUTIVE SUMMARY This report is specially meant for the student of BBA (Hons). It is concerned to brief study of the operations, functions, tasks and services of National Fertilizers Marketing Ltd. Pakistan is an agricultural based country. Fertilizers play very important role in the development of agricultural process and the increase in productivity level. Having insufficient fertilizers and due to continuous cultivation of the same area leads us to low productivity of the soil. To meet the requirements of agricultural field in the modern era and for the development of country’s economy; NFML was established. NFML was established by Government of Pakistan in 1976. Purpose was to deliver imported Urea to farmers. NFML has a good network of distribution for this purpose which consists of well trained employees. NFML has 32,000 dealers whom specific sacks of fertilizers are allotted. NFML has also its own intermediate warehouses in shape of bulk stores in different cities due to seasonal demand of fertilizers. In preparation of this report I have tried my best to provide all possible information about the operation, function and tasks of NFML in brief and comprehensive form. It also includes a brief part worked during internship. I have also tried my best to use simple and easy words and language.

CH.1 INTRODUCTION TO THE ORGANIZATION NFML is a corporation, serving the agricultural sector by providing imported fertilizers at the door step of farmers since 36 years.

1.1 MISSION The aim is to provide imported fertilizers to the farmers at the time, because this factor plays very significant role in the cultivation of crops.

1.2 VISION    

To increase number of dealers/agencies. Development of Marketing & Distribution infrastructure. Conduct liaison with Government istration. Maintain an up-to-date marketing advisory cell.

1.3 HISTORY National Fertilizer Marketing Ltd is a wholly owned subsidiary of National Fertilizer Corporation. It was established as a Public Limited Company in July 1976. In initial period of its establishment NFML was assigned to market the products of the then NFML companies namely; Pak American Fertilizers Limited, Lyallpur Chemical and Fertilizers, Natural Gas Factory. When NFML enhanced its production capacity by establishing new plants, NFML was given the responsibility of marketing and distribution of the products of NFML plants. During 2008, it was decided by Government to give the task to NFML for the distribution of Urea imported by T (Trading Corporation of Pakistan) to the farmers at the desired location and prices. NFML accepted this challenge and got success in it with a

CH.2 ORGANIZATIONAL CHART

CH.3 SWOT ANALYSIS 3.1 Strengths   

NFML has good distribution channel consisted on well trained employees. NFML is a Govt. organization that’s why there is no fear of bankruptcy It has large budgets because it is a Govt. organization

3.2 Weaknesses       

Size of organization is very high which creates management problems. There is no production of fertilizers but only distribution of fertilizers. Due to Govt. organization chances of corruption are scarce Limit of fertilizer sacks given to dealers is 1200 sacks, which is low. The high differences between the salary packages of executives and employees. The ideas from the bottom are not welcomed; for the most part orders are assigned from higher authorities. Non-availability of transport during peak season.

3.3 Opportunities  

NFML can establish its own production plant for fertilizers instead of distributing them. Being an agricultural country and due to increase of awareness of balanced use of fertilizers; the demand can increase.

3.4 Threats     

Economic instability Political instability Fertilizer corporations (FFC etc.) Fertilizer supply in remote areas Unbalanced use of fertilizers

Ch.4 FOUR P’S 4.1 PRODUCTION NFML doesn’t produce or manufacture its own products; but it is responsible for delivering the imported fertilizers to the farmers at perfect time. In this scenario, NFML is producing best distribution channel through which availability of fertilizers to the farmers is assured.

4.2 PRICE As it’s been mentioned above that NFML delivers the imported products to the farmers. A sack of 50 kg UREA at Karachi port is of Rs.1920 but the farmers receive this sack of RS. 1600 from the agencies of NFML; this is due to special subsi dy given by Government to farmers.

4.3 PLACE NFML has a countrywide network of dealers for the operations of marketing. As traditional phenomena, marketing operations are managed by regional officers; who do this through marketing officers in the relevant areas of operation. For quick and easy delivery of imported Urea to the farmers NFML has created a network of 3,200 dealers throughout the country. Every dealer/agency is permitted 1200 sacks per month and security for an agency is Rs.350, 000. The consumption of fertilizers depends mostly on seasonal demand and limited to the extent of ready availability. Logistics consideration and constraints also hamper fertilizer availability and use. By constructing bulk stores at Eminabad, Jhang, Lodhran, Risalpur and Shahdadpur on permanent basis, having capacity of 1,15,000 Million Tons; NFML established intermediate warehouses; to overcome inventories build up due to seasonality of fertilizer demand. At strategic locations across the country NFML has also hired 30 satellite stores.

4.4 PROMOTION The promotion campaign of NFML is held through brushers. Brushers are given to dealers to make them known about the purchase of the agency, limit of fertilizers, security fee, rules and regulations and other matters related to purchase phenomena.

CH.5 MARKETING STRATEGY 5.1 TARGETING NFML basically targets the following:  

Farmers Agencies which purchase the sacks of imported Urea

5.2 POSITIONING NFML’s customer prefers it due to following factors:    

Good distribution channel Availability at the time Government subsidy Good quality of fertilizers

CH.6 BUSINESS PROCESS ANALYSIS As NFML is responsible for distributing the imported fertilizers. This process is done through a set mechanism, which is mentioned under:     

First of all the dealers approach to organization for purchase of specific sacks of fertilizers. After approval of application, an OBS (Order Book Slip) is made. This process is done by marketing department. When OBS is made, then the application is sent to finance department where Cash Voucher is made. When all the above mentioned process is done, then supply order is made. At the last stage cash is received from the dealers.

CH.7 WORK AS INTERNEE This section includes my work which I have done at NFML during my internship period. I have done my duties tasked by organization and also learnt so many things, which are being described in the following:

7.1 DUTIES 7.1.1 GENERAL WORK I am a student of BBA with specialization in marketing. Therefore, I done most of work related to marketing operations. As the process of approval of getting fertilizers by the dealers has been mentioned above. I while working in marketing department was part of considering the applications and afterwards the issuance of OBS (Order Book Slip). I issued many OBS during my internship period.

7.1.2 WITH CUSTOMERS Being a distributer of imported fertilizers, NFML has to maintain good relation with his customers which mostly are the dealers. I met many dealers and solved their queries relevant to NFML.

7.1.3 INSPECTION OF SITES When it is applied for an agency the proposed site is inspected by NFML team; I got a chance to done this job along with my colleagues.

7.2 ACCOMPLISHMENTS Now the accomplishments of my internship report are mentioned here.

7.2.1 EXPERIENCE I got experience how organizations do their work, how they manage their employees, how they achieve their set goals, how they maintain their position in the mind of their customers as well as in the market.

7.2.2 KNOWLEDGE I during my internship gained practical knowledge particularly about distribution process. Prior to this, I hadn’t much knowledge about this, after doing internship I have a sufficient grip on this process.

7.2.3 TEAM WORK In an organization or any other place a person mostly can’t do work alone, one has to work with team. I worked in an environment where all type of workers and employees do their jobs. Working with different types of people trains a person how to deal with people and how to do the job in a diversified environment.

7.3 PROBLEMS FACED  Learning of terminologies and jargons of organization was a little bit difficult.

 As traditional, employees proved their selves unwilling to share knowledge.

 Adjustment with work environment was not so easy.  To meet with customers and solve their problems is not an easy job.

7.4 How Experience Impacts your Career

My internship experience has given me a real view of my field of education. Now I feel that I am well prepared to enter the professional world. I have interacted and been valued by a number of top executive who are giving their services to the banking sector for more than a decade. I feel privileged that I have worked with such learned and experienced professionals. . Each duty I performed was a different practice in itself. By the end of it, I must say I have realized my abilities, I have realized that to earn money is not so easy after all; it requires a lot of hard work and allegiance. And I now know that if I want I can make

things possible, and I also know how good it feels to achieve something and being appreciated for it. I definitely have learnt things, which will impact my career and my character. The overall experience of my internship was very good; I have learnt the sense of responsibility in its literal meaning. I am now capable of dealing with different customers, and how to be patient while doing so. So in a nutshell, this internship gave me the experience, which would no doubt boost my confidence to work in future and also will help me in the future professional growth. This internship also makes it easy for me to set in the professional environment.

CH.8 GLOSSARY NFML: National Fertilizer Corporation NFML: National Fertilizer Marketing Limited OBS: Order Book Slip SWOT: An analysis of overall strategic position of business and its environment based on strengths, weaknesses, opportunities and threats. MISSION: Mission statement explains the purpose of a business and its short term goals. VISION: Organization’s long term goals.

CH.9 BIBLIOGRAPHY http://nfml.com.pk/ http://www.google.com.pk/ http://www.wikipedia.org/

http://www.idoub.com/