Engro Chemical Pakistan Limited—Restructuring the Marketing Division

Abstract

This case describes the restructuring initiative undertaken to change the forty-year-old structure of the marketing division into a more flexible and rewarding set-up. Towards the beginning of 2008, Khalid Mir, General Manager, Marketing, at Engro Chemical, realized that significant changes were needed in order to address major issues the company was facing in terms of employee turnover, poor inventory control, low market development and sub-optimal merchandizing efforts in its original marketing structure. In March 2008, Engro Chemical Pakistan Limited (ECPL) undertook the restructuring of its marketing division. As Mir progressed through the planning and implementation of the new structure and related changes, he came across several challenges and issues emanating from this change effort. At the end of the case, Mir is contemplating his next steps. How successful had the restructuring effort been? Should he fine-tune the new structure or was another round of restructuring imperative? How could Engro reap maximum benefits out of this newly implemented structure? What lessons could be learnt regarding change management that might be helpful in future restructuring efforts? These questions still remained to be answered.