pel final ir - copy
TRANSCRIPT
PEL
NATIONAL UNIVERSITY OF MODERN LANGUAGES
DEPARTMENT OF MANAGEMENT SCIENCES
LAHORE CAMPUS
FINAL INTERNSHIP REPORT
Pak Elektron Limited Project of NUML
Submitted By Zahid Zamir
Roll No Lc-2112
____________________________________________________
Master of Business AdministrationSession January 2009 to December 2012
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Pak Elektron Limited
Project of National University of Modern Languages Lahore
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National University of Modern LanguagesFaculty of Management Sciences
It is hereby certified that the report has been thoroughly and carefully read and recommended to
the Faculty of Management Sciences for acceptance of final internship, by Zahid Zamir Roll
No.LC-2112, Session (Jan 2009 to Dec 2012) Morning, in partial fulfillment of the
requirements for the degree of Master of Business Administration of National University of
Modern Languages Lahore.
Supervisor Name _________________
Supervisor Signature _________________
Panel Members Name _________________
Panel Members Signatures ________________
Head of Department ________________
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TABLE OF CONTENTS
TITLE PAGE PAGE NO
LETTER OF TRANSMITTAL iviv
iv
ACKNOWLEDGEMENT iv
ivEXECUTIVE SUMMARY iv
Chapter # 1: INTRODUCTION OF ORGANIZATION (PEL) 01
1.1 Introduction of the PEL 02
1.2 Historical Background of PEL 06
1.3 Vision of PEL 08
1.4 Mission of PEL 08
Chapter # 2: PRODUCTS & SERVICES of PEL 09
Chapter # 3: DEPARTMENTS OF PEL 15
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Chapter # 4: PERSONAL EXPERIENCE 21
Chapter # 5: ANALYSIS on PEL 25
5.1 SWOT Analysis 26
5.1.1 Strengths 26
5.1.2 Weaknesses 26
5.1.3 Opportunities 27
5.1.4 Threats 27
5.2 PEST Analysis 28
5.2.1 Political 28
5.2.2 Economical 28
5.2.3 Social 29
5.2.4 Technological 30
Chapter # 6: SUGGESTIONS & RECOMMENDATIONS 32
Chapter # 7: CONCLUSION 37
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Letter of Transmittal
Head of Management Sciences Department
National University of Modern Languages
Lahore Campus
Respected Sir,
It is to present you the internship report which was executed at Pak Electron
Limited to fulfill the requirements of BBA (HONS) degree program. This report
is arranged according to the guideline given by the department. It was my first
professional experience. During internship I applied the knowledge that I gain
from NUML. Through this report I introduce the Pak Electron Limited, its
working structure and products, detail of my working and learning from that
company and impact of internship on my career in future. I have tried my best to
explain the experience and knowledge that I have gained from internship, to
make this report inclusive to meet the reader’s expectations.
Regards,
Zahid Zamir
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Acknowledgment
I have discovered a responsibility in me to learn from others that has shaped my
life. The work with some unidentified people makes life easier every day. I
think it is a proper way to recognize all these strangers and those people who are
close to me and have directly shaped my life during my work. First, I want to
express my gratefulness to my parents for their persistent provision and
encouragement which I received during my career. I have a great depth of
thankfulness to all my teachers for their treatment and helping approach during
my stay in the institution. I would like to thank them for his great help in
carrying out my duties. I would like to express my appreciation to people who
help me personally during the course of my studies. Last but not utmost, it
forces me much to acknowledge those who helped me to get the knowledge of
the marketing and support me constantly during my internship program.
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Executive summary
Pak Electron Limited (PEL) is a standard of Saigol group of companies.
Products manufactured by PEL always been the high level and the name (PEL) is
symbol of excellence throughout the Pakistan. Since its beginning, the company
has been working for the development and progress in Pakistan. The PEL has
produced hundreds of engineers, skilled workers and technicians through its
internship and training programs. The company consists of two divisions: The
first one is Appliances Division. This division consists of manufacturing the
specific appliances like refrigerators, microwave ovens, washing machines etc.
The second division of PEL is the Power Division. PEL Power Division consists
of manufacturing high-power electrical equipment like energy meters,
switchgears and transformers etc. And these are supplied to WAPDA and KESC.
In 1980 the company prolonged into consumer products with the introduction of
window air conditioners and today also the split AC, refrigerators, freezers,
compressors and microwave ovens .PEL products from the beginning have been
of the highest standard and the name PEL is synonymous quality throughout the
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Pakistan. Since its beginning, the company has been acting as an institution that
works for the promotion and development of knowledge in Pakistan.
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Chapter # 1
Introduction of
Pak Elektron Limited
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INTRODUCTION OF PEL’S BUSINESS
PEL is one of the oldest manufacturing units of Home Appliance in
Pakistan. PEL products are produced of extraordinary quality and have
been introduced over the years. PEL was established with the partnership
of Technology AEG Germany in 1956. In 1980 PEL prolonged their
business into consumer domestic market with introduction of window AC.
In October 1978, PEL was attained by the Saigol group of companies. PEL
has continued on the track of regaining of business, both in power and
electrical divisions. Efforts to increase efficiency, product quality and
expansion have produced the positive results. While increasing business
capacities that need surplus working capital have legitimate much and
ease their cash flow, which could offer horizontal operations. Business in
the Energy Division is endorsing confident and is estimated to develop
more in the years certifying. PEL is travel around the export market for
our food products division. The Crystal brand refrigerator launched in
1998 has become a captain source of our persistent development. This
movement is expected to endure in the upcoming years. Furthermore air
conditioner sales have not grasped the required ranks due to some severe
fault in import processes and smuggled goods, the contraction in the size
of the labor market and capital controls. In order to get reliability,
customer base company is moving towards a strategy of diversifying its
product. As a result Appliances Division is being strengthened by which
the marketing grid has extended with a focus on setting up the sales team
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and dealer network. 3S concept introduced above, is working effectively
in our service network. Exceptional devotion is being given to going up
the variety of products introducing fresh models, sizes and colors.
Demand for appliances and particularly refrigerators which are emergent
at a speedy level has improved mostly by the increasing role of consumer
financing through financial institutes and estimated schemes which are
attained by retailers.
POWER DIVISION
Products manufactured in the power division are transformers, energy
meters and switch gears. Business in this division has suffered seriously
in recent years due to problems in absorptive WAPDA and KESC. The
theft up gradation neediest WAPDA distribution was introduced by the
new administration. The production of energy meter single phase and
three phases are moving toward a finest level. The plans to improve
productivity and quality of our meters are also in growth. Our actions to
supply distribution transformers for WAPDA have recently taken a
significant enlargement. Subsequently, PEL is planning to increase our
production volume of transformers through improved methods of
production processes with the use of labor, product modernization and the
process of re-engineering. We are waiting to get the level of production
capacity of 2,000 transformers per year. A break in the business through
switchgear has been attained. PEL has successfully supplied a large order
of WAPDA switchgear against international bidding. Since all the
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activities of the Energy Division are conducting against international
tenders or advances, the chronic problem of late payments has also been
resolute.
APPLIANCES DIVISION
Business in the appliances division has shown mixed trend but the
company is finally on the perfect track. Refrigerator glass with smooth
design and Dan Foss compressor with certification of compliance with
Dan Foss Germany was launched in February 1999. This has been very
well received in the market and our refrigerators sales have been
increased. This trend is expected to continue in the coming year as a
result of the company's innovative approach to product development,
along with forceful marketing strategy. Freezer experienced and certified
by Dan Foss Germany and value-added aesthetics has also been well
received by the market. We have been supplying our Deep Freezers to
Coca-Cola International and Lever Brothers and intend our attention on
institutional sales of this product. Sales of window air conditioner is
about the same level as last year, but have not reached the desired level
with pressure on prices and exchange rates are caused the losses to back
up PEL Limited. The core cause for this situation is a massive arrival of
imported products in addition of smuggling supply of air conditioners. It
is estimated that after terminating old stocks of smuggled goods have been
drained and fresh supplies are not permitted. The company to compact
with the above situation has boarded on a major plan to improve product
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quality, expand product range, introduce energy proficient models, add
competitive features such as remote control, added filters, and to improve
the product creatively. After continuous struggles in recent years PEL
have been able to develop a new variety of models with the brand names
of "energy saving". Cooling and balance of this machine is experienced
and certified by U.S. Copeland. This has received a very optimistic
response from the market because of its energy proficiency savings,
cooling, low noise, compact size and features friendly character. PEL
expects that the company will make breakthrough the capacity of energy
savings as we have done effectively in the case of Cristal brand
refrigerators. It also a great exercise that is being done to decrease
material costs and improve the manufacturing process. Technical support
of international companies and foreign laboratories made this goal to
much energetic.
PEL APPLIANCES LTD
Freezers and window air conditioners are subsidiary products.
Optimistically, PEL Appliances Limited will travel to a recovering
condition in the following years.
PEL DAEWOO ELECTRONICS LTD
Contract for converting Sony television plant was finalized and PEL has
started production of its products since May 1999. Under this setting up
television equipment are supplied to us by Sony and then these necessaries
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are renewed into television and are marked through its own system. TV
tariff structure has been reorganized in the federal budget for 2001-2002
and as a result blessedness of locally enlarged televisions has upgraded
significantly. Sony aims to take full advantage of this situation and
capacity of locally assembled televisions resultantly is estimated to
increase miscellaneous. Agreement for the makeover of the flat screen TV
has been finalized and excellently started production in September 2000.
HISTORY & BACKGROUND
Pak Elektron Limited (PEL) is the innovator manufacturer of electrical
appliances in Pakistan. It was established in 1956 in mechanical coalition
with AEG of Germany. In October 1978, the company was recognized by
the Saigol Group of Companies. At that time, the company was
manufacturing only transformers and circuit breakers. With Saigols in
supervision, PEL initiated increasing its product range by entering into
the manufacturing of air conditioning. In 1981, the company started to
manufacture window air conditioners. In 1987, while expanding the
product assortment further, the company started to manufacture
refrigerators and freezers. In 1988, a subsidiary company was established
which is called the (PEL Appliances Limited). In 1992, the product
variety again prolonged and company start to manufacturing energy
savers. In 1993 it established a joint venture with (Daewoo Electronics
Limited) of South Korea to manufacture the color televisions. PEL is one
of the prominent manufacturers of electrical products in Pakistan,
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concentrating on consumer and engineering sections. The company has a
resilient presence in the power equipment market and is well recognized
in the appliance market. The Energy Division mainly manufactures
transformers, energy meters and circuit breakers and is a prominent
supplier to WAPDA and KESC and commands a market share of
approximately 36% in transformers, 35% of energy meters and 34% in
switch gears. These actions are based on the allocation of orders by
WAPDA, KESC and deliveries to private consumers. The PEL Appliances
Division has a resilient position in the local market of home appliances,
specifying in refrigerators and air conditioners, with an expected market
share of 28% and 10% correspondingly. In the last five years, the
companies have made the substantial improvement to increase the sale
through product modernization, competitive prices and a durable
distribution set-up. The industry of consumer durables has recently
experienced prompt growth in demand compelled by low commodity
prices, the introduction of consumer finance initiatives, low interest rates
and the purchasing power of consumers has improved. In the same way,
the construction movement in the country and upgrading of the set-up of
the WAPDA and KESC are the main drivers behind the growth of food
industry equipment. PEL is in healthy position in development of
consumer appliances and power equipment markets. The question is to
certificate that PEL should finance their advance needs. Both subsidiaries
namely (PEL Appliances Limited (PAL) and PEL Daewoo Electronics
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Limited (PDEL) had be merged into PEL through the decision of
Resolutions by the Honorable High Court, Lahore. Since its beginning, the
company has always been contributing to the advancement and expansion
of the engineering sector in Pakistan by introducing a range of excellent
electrical utensils and appliances and by producing hundreds of engineers,
technicians and skilled workers through their internship and training
programs.
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Mission Statement
Providing quality products and services for the customer
satisfaction to maximize profitability for all stakeholders through
the finest use of possessions.
Focus on the personal development of our human resources to meet
future experiments through good governance, corporate values and a
safe working environment with a strong wisdom of social
responsibility.
Vision statement
To excel in providing engineering goods and services through continuous
improvement.
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CHAPTER#2
Products & Services
Of PEL
Products & Services of PEL
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The company comprises of two divisions:
Appliances Division
Power Division
Products of Power Division
The Power Division of PEL has following products;
EPC Contracting
Power Transformer
Distribution Transformer
Dry type Transformer
Energy Meter
Switch gear
Transformer Services
Appliances Division
Business in the appliances division has shown mixed trend, but the
company is finally on track. Crystal Fridge with aerodynamic design and
Dan Foss compressor with compliance authorization Germany was Dan
Foss launched in February 1999. This has been very healthy received in
the market and our refrigerator sales have shown an increase of 125%
since 1999. This trend is expectable to continue in the upcoming year as a
result of the company's innovative methodology to product improvement
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with marketing strategy. Deep an aggressive freezer experienced and
licensed by Dan Foss developed aesthetics Germany and has also been
well received by the market. PEL has been supplying our Deep Freezers to
Coca-Cola international and lever Brothers and aim to continue our
attention on institutional sales this product. Sales window air conditioner
is not closely on the same level but have last year reached the desired
level with a pressure on prices and the impact exchange rates causing
increased losses of the subsidiary Appliances Limited PEL. The main
cause for this condition is an enormous coming of imported products as a
result of the change in the assessment recorders that allow during prices
imports and under-charging. In addition, smuggling supply air
conditioning also persistent after the announcement by the Government to
execute such activities controls on. It is estimated that after terminating
old stocks of smuggled goods have been bushed and other supplies are not
certified. The company to deal with the above circumstances has get on a
key plan to increase product quality, expand product series, introduce
models power effective, adding competitive sorts such as remote control,
filtered added and to improve product aesthetics. After continuous efforts
in years the recent PEL have been able to develop a new range of models
from Energy Saver under the name. "Cooling and this machine balance is
tested and certified by U.S. Copeland. This has very positive received a
response from the market because their savings from energy efficiency,
cooling, low noise, compact size, features friendly character. PEL expects
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that the company will make a development in the amount of energy
savings as we have successfully performed in the case of the addition of
Crystal Refrigerators. In mark being a great workout to do to decrease
material costs and improve manufacturing process. Technical support and
know how being acquired international companies and foreign laboratories
for achieve this goal.
PEL APPLIANCES LTD.
Freezers and window air conditioners are subsidiary products of PEL .Its
Appliances Limited is predictable to grow in healthier situation in
following years.
PEL DAEWOO ELECTRONICS LTD.
Agreement for converting Sony television plant established and PEL has
started production of its products since May 1999. Under this
prearrangement TV kits were supplied to us by Sony and renewed
televisions are distributed to them and markets through its own network.
The conversion price of $ U.S. called by us is charged attached televisions
every fortnight.
TV bill structure had been reorganized in the federal budget 2001-2002
and as a result of locally assembled televisions inviolability has
considerably improve. Sony intends to make the most of this volume
situation and of locally assembled televisions is expected to increase
resultantly collectors. Agreement for the conversion of flat screen
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television has VEGA also resolved and we have started production
successfully In September 2000.
Appliance division has following products;
Refrigerators
PEL’s refrigerators are available in 6 series of different colors, models, prices, and
capacities. The series are as follow
Expression Series
Premier Series
6-Series
Deluxe Series
Smart Series
Mini Series
Air Conditioners
The air conditioners are available in three types;
Split Air Conditioners
Window Air Conditioners
Floor Standing Air Conditioners
Microwave Oven
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PEL also introduced series of furnace models "Silver PEL line"
Microwave. PEL offers 26 different oven models with different prices,
models and dimensions.
Washing Machine
PEL’s washing machines are available in different models. The series are
as follow;
Magic Clean PWM7700
Magic Clean PWM512
Water Dispensers
PEL also introduce water dispensers. The main objective of introducing is
to increase its product line and provide value to customers.
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CHAPTER # 3
Departments Of
PEL
Departments of PEL
Departments
There are 6 major depar tments in PEL which are as fol low:
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1. Market ing Depar tment
2. Finance Depar tment
3. Product ion Depar tment
4. Human Depar tment
5 . Adminis t ra t ion Depar tment
6. Research &Development Depar tment
1. MARKETING DEPARTMENT
This depar tment i s control led by the Managing Director . Then fur ther
down the hierarchy are :
Brand Managers .
Credi t Dis t r ibut ion Manager .
Customer service agents .
Ins t i tu t ional sa les manager .
There are s ix branches of PEL in Pakis tan.
They are in charge of Regional Sales Manager (RSM).
Pol ic ies suggested by the sa les off ice for the whole region. The
customer service pol ic ies are def ined by the Customer Service Manager
of the off ice . The object ives are given to regional sa les manager of
each par t icular region and addi t ional object ive are performed by the
RSM and sa les agents to achieve the demand.
In Lahore , th is depar tment i s use up by these people who are as fol low:
RSM
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Sales Area Manager
Sales Execut ive
This depar tment controls the 4Ps of market ing l ike product , pr ic ing,
Placement and promot ion. They are a lso responsible for the
modif ica t ion and modif ica t ion of the var ious brands of the company
and new products . They may recommend changes in color and s ize of
product that i s being used by customers . They t ry to in t roduce
modernizat ions in products to make them eye-catching for customers
and to compete wi th compet i tors Dawlance, Waves e tc . There are pr int
and e lect ronic media for ac t ive suppor t the idea .
2. FINANCE DEPARTMENT
The depar tment i s organized by the Chief Financia l Off icer . The main
responsibi l i ty of the f inance depar tment i s to provide funding in
accordance wi th the company pol icy for d i f ferent depar tments
according to thei r need and susta in f inancia l budget for each
depar tment independent ly . Al l purchases are made wi th the f inance
depar tment ; th is depar tment i s d ivided in to three sect ions:
Finance
Accounts
Credi t Control
( i ) Finance
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Finance deals wi th Banks
( i i ) Accounts
Accounts are deal wi th the cost ing system, bi l l ing, operat ions
management and in ternal audi t .
( i i i ) Credit Control
This sect ion of the f inance depar tment handles credi t and
recovery procedures .
3. PRODUCTION DEPATMENT
This depar tment handles the manufacture of products . This depar tment
i s g iven by the object ives of senior management to produce a number
of products that are determined by past sa les data and market
condi t ions . This depar tment i s responsible for qual i ty control , so for
example we see that there are no defects or def ic iencies in any product .
In abroad, i t i s a habi t to implement new technologies and to keep up
to date on any new machinery or o ther equipment to get a bet ter
product performance. After the manufacture of a new product , i t i s
t ranspor ted to Germany for technical assessment for Dan Foss
Company. After author izat ion of the same, then i t s major i ty product ion
is s tar ted.
4. HUMAN RESOURCE DEPARTMENT
This depar tment uses the fore ign employee se lect ion cr i ter ia i .e .
d i f ferent se ts of guide l ines for se lect ing employees . After se lect ion of
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the employees but a lso provide t ra ining and improve thei r ski l l s . The
head of human resources depar tment ca l led Human Resources Manager .
FUNCTIONS
Recrui tment
Select ion
Tra ining
Transfer
F i r ing decis ions
Labor Affa i rs
S taff Welfare
Human resource planning for the next f ive years .
5. ADMINISTRATION DEPARTMENT
The main responsibi l i t ies are :
Maintenance Suppor t
Maintenance of Pr inciples
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Inspect ion of the mater ia l in and out of the fac tory
Maintenance Factory
Assis t a l l depar tments about mater ia ls
6. RESEARCH & DEVELOPMENT DEPARTMENT
This is the most important department regarding the future of the company
as a market leader in this department is continually in touch with the
market to meet customer preferences and product specifications. After a
thorough analysis of customer expectations then this department gives its
recommendations to senior management for changes in the product for
market success. This department conducts market surveys to obtain
information. This department is also responsible for bringing new
technologies into products.
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Personal Experience
Personal Experience
My knowledge of Marketing and Advertising helped me while doing
internship. I learned a lot during this activity that how much important it is
to organize the things in proper manner, sending advertising material
(posters, stickers, wobblers, buntings, banners etc.) and letters or
Notification to all area sale offices of PEL. Arbitrarily calling existing
customers in different areas of Pakistan and asking them if they were
gratified with the product they purchased, and then make a customer
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satisfaction report. Preparation of monthly report 0f Sales Plan vs. Actual
Production.
Visit to Lahore sales office in order to get the information regarding
PEL competitors.
Preparation of the comparing report of competitors and world well-
known brands in order to make easy to compare and know the strength
and weaknesses of PEL home appliances.
Preparation of daily sales and collection report.
I participate with our Print Media manager and select the price tags
which have circulated all over Pakistan in PEL presentation and whole
sale centers.
New Things Learned
Some of the new things I learned here were which are as follow:
How to work both individually and in groups in a stress-free and
tense condition.
Working under the command of someone.
How to manage the business while introducing new products.
Tolerance is very important in relationships, like anger can lose
your customer.
To increase sales and stay competitive with the best brands that is
necessary to keep their dealers happy by giving them incentives.
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How to consolidate with other sales areas of PEL by phone / fax.
How to deal with customer complaints, so of satisfy them.
How to manage promotional materials.
How to manage time for several instant tasks in hours.
How to bring about communication between different departments .
CHAPTER# 5
Analysis Of
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Pak Electron Limited
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SWOT ANALYSIS OF PEL
The following is an assessment of the strengths, weaknesses, opportunities
and threats of Pak Elektron Limited:
Strengths
Widespread focus on supreme quality of products
Strong brand image
Strong dealer network
Strong grip in home appliances
Highly skilled and expert Management
Modernized research and development department
High quality products and brilliance after sales service
Weaknesses
Lack of advertisement
Lack of product range as compared to competitors
Weak marketing strategies than competitors
Vast unreached markets of Pakistan as PEL has dealer networks in
only 24 cities of Pakistan
PEL is not conducting E-Business and some of its competitors are
conducting business online like Waves.
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Opportunities
Reaching the large unreached markets of Pakistan
Formation of strategic alliances with potential partners
Online and more modified marketing
Transmission of online business along with traditional element and
pointing business
Foreign alliances especially in technology and development
Increase in product range
Increase in production capacity
Reaching foreign markets
Threats
Strong competition both in appliances and power products industry
Un-explored markets may be confronted by foreign companies
Financial Problems
Deteriorating political conditions
Increasing prices due to inflation
Slow growth rate in Pakistan
Uncertainty of government
Increase in fuel prices & electricity power failure
Difficulties in recovery from debtors i-e liquidity problems
PEST Analysis
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Political:
The political environment in Pakistan has been presenting quite unsteady
and affecting circumstances to virtually all the business in the country.
Sadly the condition has much emphasized in the recent periods. Where the
political and governmental policies and conditions influence all
businesses in one way or the other, the relative impact and importance of
the fundamental political situation can be determined according to the
nature of the commerce and the kinds of establishments it has with the
external entities for its operations and market. With a sound
establishment, nature of products (white goods) and a leading group of
companies, PEL has a buffer to its advantage against the ever changing
political conditions. Proprietorship by such a prominent group brings
opportunities concerning politicization for governmental policies and
other politically relating concerns.
Economical:
The economy is facing a far stretching inflation period supplemented by a
severe energy crisis which has not affected only the market but also the
costs of production and the supply chain. The demand for refrigerators - a
power product of PEL in home appliances, and A/Cs, as well as other
products, has been comprehensively affected due to frequent power
outages and increase in utility charges. On the contrary, the conditions
have increased the demand for generators. The increase in costs of
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production can be signified by an increase in utility expense by
approximately 10 million rupees a month, where the company meets the
power shortage through its own generators. So as a result the retailers a
supply chain will be affected. As per the future prospects, major
investments in the energy sector are to be expected. If such struggles by
public and or private enterprises come by, should provide PEL with an
opportunity for its power products, which includes commercial type
electrical equipment like transformers, switch gears etc and EPC
contracting.
Social:
Pakistan is an LDC with a large population base. Certain dynamics over
the years have shaped the consumer first choice categorized by an
increasing demand in home appliances. However a standard underlying
consumer buying decisions is to prefer imported brands, when personal
economics are no restriction. However, an increased reliance on locally
manufactured and branded goods has increased over the recent times, as a
healthier competition has risen following establishment of various
manufacturers with in the country. Regarding marketing ethics and
environmental concerns, though awareness has increased over recently,
appeal to such problems and concerns by the general public remain low.
Technological:
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PEL being a home and power appliances company appeals a close relation
with the technological environment available in Pakistan. This
environment itself has improved over the years and provided opportunities
for new- technologically more advances ventures, such as added
production lines for more advanced kinds of A/Cs, Refrigerators and
better power appliances. Though the technological environment in
Pakistan may not be advances to a high degree, it still provides a good
base line for an appliances company that is not involved in difficult and
high end products, but rather requires more of a common technology. The
competitive advantage and marginal decreases in costs of production for
applying technology in Pakistan however may be argued over. The capital
costs for bringing in new technology may exceed the choice of using
labor- for labor costs are lower in Pakistan. On the contrary, technology
may provide a higher level of quality. Thus there lies the principle of
trade-off between costs vs. quality. Currently the technological
environment in Pakistan does offer a higher level of technology but with
higher costs. Thus where the marginal cost may decrease the overall
investment may not suggest that PEL would essentially do so as it is not
currently involved in the production of high-end products, which can be
produced equally good by a much cheaper labor. The technological
environment regarding communications has substantially increased over
the recent years. Such advancement has assisted PEL to provide better
customer relationship management (CRM). PEL has a well-established
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network of more than 1300 dealerships, display and customer care center
that communicate with a central customer service department and a call
center. The system keeps a close watch on the day to day bases and enjoys
good relationship with its customers.
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CHAPTER# 6
Suggestions &
Recommendations
On PEL
Suggestions
PEL is facing financial problems PEL must try to come out of curse of
loans because it is paying billions in interest to financial associations
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every year. For this PEL must try to realize more on equity and gradually
take release from all the loans. PEL must strengthen its collection policies
as it faces difficulties in recovery from debtors which creates liquidity
problems for the company. The PEL must have to apply better marketing
strategies to attract the customers, like other competitors are doing such
as Dawlance, Orient and Waves etc. PEL has narrow product range as
compared to its competitors e.g. kitchen appliances like sandwich makers,
juicers etc. so additional products must be included in PEL’s product
range. PEL must add attractive and advanced models and introduce new
features in its products like LED (Light Emitting Diode) temperature,
LCD displays on refrigerators.
The company must change the advertising theme and slogan to attract and
for the attention of customers. They must show some creativity in all
promotional activities. So PEL must come with some attractive slogan to
gain more competitive advantage over its competitors. PEL has to work on
their distribution network and must be spread in the unreached areas and
cities of Pakistan. PEL must form strategic alliances with potential
partners to strengthen the grip over national markets and reach
international markets as PEL has recently entered into a strategic alliance
with LG.
PEL must start selling its products online besides brick and mortar
business to reach the international customers especially as WAVES is
already following this strategy. PEL like other big companies should also
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PEL
use bill-boards for advertising purposes. As PEL statements are an equal
opportunity employer so PEL must hire more female employees because
there are only 10 female employees in a huge organization of almost 700
employees. PEL must set away a specific quota for female employees.
Separate washrooms and prayer rooms must be provided for females in all
departments. PEL must introduce more innovative and new products which
are available at International level.
PEL must organize team work within bureaucracy and try to move toward
small company thinking. PEL must have an Extranet for creating
horizontal relationships with its suppliers and dealers. Employees at PEL
still mark attendance on manual records although whole organization is
computerized so there must be an automatic attendance system for
employees.
RECOMMENDATIONS
After looking into different weaknesses and future threats I recommend
the following steps to PAK Elektron Limited in order to deal with future
problems; PEL should present a true decentralize setup in the
organization, giving everyone some grounds for decision making, increase
employee’s involvement in day to day planning and recollect back the
assurance plus satisfaction of the employees. PEL should also consider the
importance of advertising for their new products, which plays an
important role in raising awareness, customer favorites and maximizing
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market share. It should also use some tools such as organizing
promotional events, programs and gifts, etc. PEL needs to strengthen its
monitoring and inspection network in order to minimize the miss-use of
resources by employees and verify the correctness of the data collected by
them.
PEL should also make sure equal price incentives to all the retailers in
order to increase their willingness to offer more shelf space to the
company. PEL should also take care of the economic, political factors
such as inflation, Government Policies while projecting the Cost of
Production for future because this will help the company in entering into a
fix price contracts for the purchases of material at a single time similarly
than it will be able to charge stable prices to its customer. PEL should
also adopt any other methodology for projecting upcoming time period
sales, which should include seasonal factors consideration in order to get
accurate future assessments. As brand name is very important factor in
consumer buying behavior, thus it is advised that PEL should work on the
brand image. It already has a strong brand name but it has more to do,
mainly through advertising, to compete with its direct competitors and
other international brands. The company should add more features to their
products. People are attracted towards a product with unique features and
something that would make the customers feel that they have got their
money’s worth. The company should take measures to improve the quality
of their products. Thus the company is directed to take steps towards
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improving the quality of its products and cosmetic features; otherwise it
will lose a portion of potential customers to their competitors. PEL should
have to cut down on the great margins to the dealers and give more
incentives to the consumers to healthier competition in the market from
push strategy to pull strategy. PEL extra effort should be on electronic
media to get competitive advantage over the competitors. They have to
increase their advertising expenditures. Introduction of seasonal schemes
can help to increase sales.
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CHAPTER # 7
Conclusion
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CONCLUSION
My own finding is that people while purchasing a specific item have an
excessive courtesy in the brand name, quality and features. Strong brand
name has very good impression in consumer’s mind and they usually favor
to purchase the same brand which they believe that is remarkable. As now
a day’s consumer’s demand is for Haier & Dawlance refrigerator. People
have strong guarantee in these brand names. All other factors like price,
advertisement, word of mouth and even dealers are secondary importance
in this concern. I believe that PEL is focusing more on Push Strategy &
Dealers network rather than Pull Strategy to create consumer demands in
the market. PEL is not targeting through nominal advertising, directing
marketing efforts by using progressive supportive communication tools.
This is factual that new technologies and designs generate new customs
for marketers to reach & analyze consumers interactively, but still greater
part of consumers in Pakistan is being affected by traditional media
Television, Magazines and Newspapers. Although PEL is doing some
advertising efforts but problem is that there is no creativity in ads.
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