Engro Chemicals Pakistan Limited - Business Disaster Overcome
(10 pages of text)
Engro Chemicals Pakistan Limited (Engro) was a very large manufacturer and marketer of fertilizer in Pakistan. It had a number of subsidiaries and joint ventures in a variety of businesses. The company was listed on the Karachi Stock Exchange (KSE) and was among the top companies as ranked by the KSE. In August 2007, the company's head office was completely destroyed by a fire. The office was located in Karachi and the fire destroyed all the equipment as well as the hardcopies of the accounting records. The company was suddenly faced with a catastrophic loss as the records were critical to Engro's day to day operations. The information technology (IT) department had developed a disaster recovery plan (DRP) in 2005 that was exclusively related to reestablishing the IT facilities after any event that could make the business systems inoperable. The company invoked the DRP as soon as the news of the complete destruction of the office facilities was received. The IT and finance staff had to use the backup equipment and data files to restart the transaction processing.The case includes a description of various business systems used by Engro and the data security processes that had enabled the company to restore the accounting and other systems needed at its head office. The main teaching objective is to focus on minimizing the business risks arising due to the destruction of the IT facilities. The case also has details of the DRP, which can be analysed as to its contents, and details of the management processes of Engro, which allows for a discussion on corporate governance within the company.
This case can be used in an MBA or executive program in which the teaching objective is to highlight the need for a disaster recovery plan (DRP) as part of an organization's business risk minimization strategy. With the increasing importance of IT for the continuation of critical business functions, combined with a transition to a 24-hour economy, the importance of protecting an organization's data and IT infrastructure in the event of a disruptive situation has become an increasing concern in recent years. The case can also be used in a class on IT in which the teaching objective is to discuss the issues related to IT security.
Pakistan, Large, 2007
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