Executive SummaryWe the student of FBMG have done this assignment on PotashCorp. We have discussed about the Potash Corporation history, vision statement, mission statement then we discuss about marketing mix, we prove that this company is certified, we have stated about issues, we have included the logo, product picture, related picture, table and references. 1
PotashCorp is the world's largest crop nutrient company and plays an integral role in global food production. The company produces the three essential nutrients required to help farmers grow healthier, more abundant crops. With global population rising and diets improving in developing countries, these nutrients offer a responsible and practical solution to meeting the long-term demand for food. PotashCorp is the largest producer, by capacity, of potash and one of the largest producers of nitrogen and phosphate. While agriculture is its primary market, the company also produces products for animal nutrition and industrial uses. Common shares of Potash Corporation of Saskatchewan Inc. are listed on the Toronto Stock Exchange and the New York Stock Exchange the Company was the world's largest potash producer and the third largest producer of nitrogen and phosphate, three primary crop nutrients used to produce fertilizer. 2
Founder and History The company was created by the government of Saskatchewan in 1975. In 1989 it became a publicly traded company as the government of Saskatchewan sold off some of its shares, selling the remaining shares in 1990. The Saskatchewan potash industry began in the 1950s and 1960s. The government saw it as a promising new field and granted large subsidies to the new projects, mainly by American companies. However, this led to overproduction and when a global potash glut began in the late 1960s the industry almost collapsed. The Liberal government of the province introduced an emergency plan setting up quotas and a price floor in 1969. This plan was popular among the companies, which could now charge monopoly prices. The NDP government that was elected in 1971 in Saskatchewan was dissatisfied with this plan as the huge profits went to the companies rather than the government, and it wasn't sustainable in the long term. In 1974 the government passed a new potash regulation scheme that included a reserve tax. This plan was resisted by the potash producers, and its constitutionality was challenged. Thus in 1975 the provincial government established the Potash Corporation of Saskatchewan as a government crown corporation. In November 1975 the province announced its intention to take part of the potash industry into public ownership. The government offered to negotiate with the producers, and many of them agreed to sell to the government. Over the next several years PCS bought mines around Saskatchewan, and eventually came to control 40% of domestic production. Public ownership drew the ire of the United States government, which criticized the provincial government for buying Americans' assets and creating a monopoly. In the 1980s the Commerce Department accused the corporation of dumping and imposed massive duties on all potash imports to the United States. In the early 1980s the company struggled and lost money for several years accumulating an $800 million debt. In 1989 the Conservative government decided to privatize it by selling the company to private investors. During the 1990s PotashCorp expanded by buying up a number of American potash companies including Potash Company of America, Florida Favorite Fertilizer, Texas gulf, and Arcadian Corporation. Today it owns assets across Canada, the United States, and also in Brazil and the Middle East. By March 2008, due to rising potash prices it had become one of the most valuable companies in Canada by market capitalization, valued at almost C$63 billion. In August 2010, PotashCorp became the subject of a hostile takeover bid by BHP Billiton. The bid was ultimately rejected by the federal government under the Investment Canada Act, as it does not provide a net benefit to the country. BHP withdrew its bid soon thereafter. In October 2013, PotashCorp reported that it had sustained a 43% drop in third quarter profit year-over-year. The company cited Uralkali's decision to break apart its joint venture with Belaruskali, and the impending threat of lower potash prices that would result, as having hampered its profits. In December 2013, the company announced that it would lay off 1,045 employees. 3
Objective of PotashCorp Our Mission Since forming in 2004, Mosaic has grown to be a global leader in phosphates and potash crop nutrition. We are proud to be a competitive low-cost producer with strong customer relationships, and the financial strength to invest in growth and innovation. And we’ve led the industry in developing high-quality premium products that help growers succeed. None of Mosaic’s success would be possible without our greatest asset—our people. Each employee at Mosaic adheres to the same companywide principles and priorities, and contributes to our company strategy: to win in our core businesses of phosphates, potash and international distribution, and to grow in new ways. Our vision We are responsible, innovative, collaborative and driven. We are accountable for the safety and wellbeing of our colleagues and our company. We act with integrity and conviction. We are careful stewards of natural resources. We foster innovation and encourage ideas that make us better. We collaborate across departments and geographies to accelerate our performance. We strive to achieve excellence knowing that we can always improve. Together, we are driven to succeed. Our value 1.Develop, engage and empower our people- Work together to build a culture based on our guiding principles, where people are proud to work and grow. 2.Grow and strengthen our business- Maximize efficiency, accelerate growth, and deliver exceptional products and services for our customers – safely and sustainably. 3.Create value for our stakeholders- Be transparent, operate responsibly, build trusted relationships and help our stakeholders thrive. 5
Market positioning of PotashCorp PotashCorp is one of the best raw material producer industry for the potash and urea based industry. The products of this company is classed in to three sectors 1.As a raw material for various industry 2.For farmer 3.For export purpose For export and raw material are expensive. This product can only be purchased by government farm and private limited company. (Industrial products) The products that are produce for farmer are cheap and only sold for local agriculture purpose. (shoppy product) Market Segmentation Type of segmentationSegmentation criteriaPepsiCo target segment GeographicRegionDomestic and international DensityUrban/rural countryNorth America, Europe, Asia pacific, LAMEA DemographicIndustry Agriculture, public sector, health care, manufacturer, energy and utilities. User TypeLarge enterprises, small and medium enterprises Production processorganicChemical, fertilizer Mode of applicationSoil, foliar, fertigation By crop typeOil seed and pulses, fruits and vegetable, grains and cereals, plantation and cash crops 6
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