tayyaba report

Internship Report of Leather Coordinators

INTERNSHIP REPORT

ON

LEATHER COORDINATORS

Tayyaba Ishfaq

ROLL # BBA-12-26

SESSION (2012-2016)

BBA_ 7TH SEMESTER

DEPARTMENT OF BUSINESS ADMINSTRATION

BAHAUDDIN ZAKARYA UNIVERSITY

SUB CAMPUS SAHIWAL

LEAHTER COORDINATORS (PVT) LTD.


ACKNOWLEDGMENT

“First of all I am thankful to Allah Almighty who gave me the strength and ability to write this

report and complete it in time without any hurdles. I am thankful to my parents. Their affection

and support allows me to accomplish my task successfully. I would also like to thank my advisor

Sir munir who gave me the confidence, and guided me at every step during the

accomplishment of my report. It was a great experience to write this report due to the fact that it

was an explanation of what I experienced and learnt during my internship. It gave me a better

idea of how things work practically and how important it is to deal with all aspects of leather

garment businesses. This report gave me the opportunity to put into practice of what I had learnt

during my internship”.


Internship Report of Leather CoordinatorsExecutive Summary:

Leather coordinator is private limited company that deals purely in leather garments. It

manufactures and exports quality leather garments in Pakistan. It is doing business in Pakistan

from about 42 years and was also awarded as the best leather exporter of the year in 2008 by

the government of Pakistan. The Leather coordinator is manufacturing all kinds leather

garments, but it majorly focuses, and is specialized in leather jackets production and the target

market of Leather Coordinator are foreign countries like Germany, France, Holland, England

and some other countries in UK.

This report is the brief and explanatory analysis of leather coordinator. The objective is

to share my practical knowledge that I gained during my work at Leather Coordinator. The

research is based on my findings that I gathered during my work. Primary data was collected

through interviews, from the employees of different ranks, survey and observation at sites. For

secondary data collection I read newspapers, articles, text books and used internet. During my

internship tenure I worked in different departments. Different tasks and duties that were

assigned to me have been mentioned in this report.

At start, the introduction and history of leather industry is given in order to understand

its importance in Pakistan. The first chapter is about the introduction and background of LC,

objectives, organizational structure and the product portfolio is also discussed in it. In second

chapter, the operational activities, production plan of LC, Competitive advantage and market

segmentation are discussed. The third chapter contains the findings and the analysis.

SWOT analysis of the organization is also done. SWOT analysis plays a vital role and

acts as a mirror for the management to know about their internal strengths and weaknesses and

external opportunities and threats. Management can take corrective actions and can avail

different opportunities by using their strengths. The focus of the last and fourth chapter is on

recommendations related to management and administration to let LC capitalize the

opportunities and overcome the weaknesses.



Table of Contents

Introduction to the sector----------------------------------------------------------- 05

History of leather industry in Pakistan-------------------------------------------06

Background of leather coordinator-----------------------------------------------06

Location of Leather tanneries in Pakistan---------------------------------------07

Company Vision and mission-------------------------------------------------------07

Organization structure--------------------------------------------------------------08

Market segmentation and market strategies-----------------------------------09

PESTL Analysis-----------------------------------------------------------------------12

SWOT Analysis-----------------------------------------------------------------------14

Recommendations---------------------------------------------------------------------16

References------------------------------------------------------------------------------17


Internship Report of Leather Coordinators1. Introduction:

1.1 Introduction to the sector

Leather industry is the largest industry in Pakistan that is doing the second largest

export after textile industry. Leather coordinator (pvt.) was established in1990as a private limited

company at Sahiwal. Initially the main objective of the organization was manufacturing and

export leather goods. Sheik Muhammad Younis is the pioneer of leather industry at Sahiwal

which is exporting the leather products. Muhammad Younis started his business with the

tannery process. According to estimation this industry is contributing about $650 million in a

year, and it has the potential to go farther than this. Apart from the foreign exchange earning it is

providing employment to a larger part of the economy. Leather technologists can claim to be a

member of an ancient profession because leather was one of the very first manufactured

products. At first, leather garments were not considered as valued products, but now leather

and leather products are included in the luxurious products. It has become the necessity of the

world and especially for the Western culture and countries. It is the only product which is used

completely, and not even a single piece of smallest cutting remains useless. The raw material

for leather and leather made products are the skins and hides of animals such as sheep, goat,

buffalo and cow, which are available in abundance in Pakistan. These hides are available at the

registered slaughter houses in Karachi, Kasur and Multan where the quality and other

precautionary measures for both animals and the product are kept under consideration.

Pakistan was the leader in producing quality finished leather from 2001 till 2006. After this the

downfall started on this industry. That downfall was from 2006 till 2009. The main reasons

behind this downfall were poor economic conditions and negligence of producers. Low and

medium graded leather garments were produced in that time period. The current structure of

this industry is well established and this structure is divided in to various segments such as

tanning, finished leather, foot wear, leather goods, leather garments and component parts of

leather garments. U.S, France, Italy, Germany, Brazil, Japan, Holland and South Africa are the

major buyers of Pakistani leather. Pakistan is highly competing with China and India for exports

because these two countries are the major competitors of Pakistan. Pakistani leather industry is

well known in international markets. This industry contributes about 8% in Pakistani exports and

it has the share of 4% in GDP. This industry is making progress by leaps and bound. Pakistani

government is providing support to improve this sector.


Internship Report of Leather Coordinators1.2 History of Leather Industry in Pakistan

Leather has been export oriented business for many decades. Pakistan had been

exporting raw leather 1970s, in 1980s; Pakistan started exporting finished leather, leather

garments and leather products. The history of leather is as old as the current age of Pakistan. In

the beginning vegetable tanned skins were produced, but due to the technological change

chrome tanning is used now. At the time of independence of Pakistan, only a small scale

production was done by few tanneries, but after the independence of Pakistan there was seen a

rapid growth in this sector. In 1950s, some tanneries were established in Lahore and Karachi,

and those setups were very well. In 1960s, and 1990s, some more units were installed at

Sialkot, Multan, Sahiwal, Gujranwala and Hyderabad. Early setups produced only picked and

vegetable tanned hides and skins, but now Pakistan’s tanneries are not only producing crust

and wet blue, but are also producing and exporting the finished leather. Pakistan started from

exporting raw leather and now is exporting finished leather, leather goods and leather products.

All this rapid growth happened due to the favorable conditions of Pakistan’s environment, cheap

labor and raw material and demand of leather products in international markets.

1.3 Background of Leather Coordinator

Leather Coordinator started its business about 45 years ago. The owners of Leather

Coordinator used to work in Aziz Leather Craft (ALC), near Harrapa which was the second

largest leather factory of Asia at that time. Leather coordinator started its business from a very

small unit which had 4 – 6 machines only which were used to produce leather gloves only. They

earned profit and started the production of leather about 42 years ago in their production unit

which they named as Yousaf Tanneries. Yousaf Tannery is the registered tannery under

Pakistan Tanners Association (PTA). It was awarded the best leather manufacturer in Pakistan

in 2008 by PTA. They made progress and expand their business by making leather garments

and named this company ‘Leather Coordinators’. This company is exporting leather finished

goods and earning substantial foreign exchange. Their hides and skin dealing unit is in Jahan

Khan. Wet blue is manufactured there and is brought for further process in Yousaf Tanneries.

Leather is made here and then is brought to Leather Coordinator which processes it for the

leather garments. The finished product of Yousaf Tanneries is the raw material for Leather

Coordinator. Yousaf Tanneries and LC are situated at Tufail Shaheed road in PSO Storage and

dealing in Sahiwal. This business is owned by Sheikh Mazhar Waseem, Sheikh Azmat Saleem,

Sheikh Basharat Nadeem and Sheikh Basharat Naeem. It is a family owned business.


General Manager


1.4 Location of Leather Tanneries in Pakistan:

There are more than 2600 registered and unregistered tanneries in Pakistan under

Pakistan Tanners Association ‘PTA’. Along with the passage of time the number of registered

tanneries has increased from 530 to 600 in 2003, and up to 745 at present. These tanneries are

located in all Pakistan in Karachi, Hyderabad, Faisalabad, Multan, Lahore, Kasur, Sialkot,

Peshawar, Gujranwala, Sheikhupura and Sahiwal. PTA facilitates these tanneries in to the local

and international markets. The increase in number of these tanneries shows the growth of

leather industry in Pakistan.

2. Company’s Mission:

“To be a leader in producing matchless and supreme quality leathers with promise to ensure

quality for excellent output and delivery of products in competitive prices”.

3. Company’s Vision:

Customer requirements are much important for satisfaction of customers.

To encourage the human growth to the full potential.

To achieve the international standards through quality and higher efficiency.

To assure maximum satisfaction to the customers and bringing timely services to them.

To recognize the customer's need and customer’s right to quality and deal accordingly.

3.1 Objectives of the Company: Earn maximum earnings in order to benefit the employees and to do maximum business,

never to compromise on quality.

The clients and to live up to the demands of growing organization, employees.

Maximum satisfaction to the clients to assure.

To keep integrity & fair play.

Pay all the levied revenue enhancements and to function as a framework unit, follow all

the Laws applicable, report earnings.

Outside and to keep an open info system & understanding within the company.

Outside and to keep an open info system & understanding within the company.


Internship Report of Leather Coordinators4. Organization Structure

5. Market Segmentation and Marketing Strategies:

Into two main segments market is separated as.

National market segmentation

International market segmentation

Into following both are further divided as.

Individual

Business customers

Business customers and Individual customers

Who buy the Small amount of items for their personal use those are individual

consumer and others business that will sell them to their customers and cover the entire

wholesaler, retail merchants are the business customers.

5.1 Product lines

As the part of its long term plan the initial product line was that.

1. Man’s jackets

2. Women’s jackets

3. Children jackets

4. Leather Trousers

5. Men's leather coats

6. Women's leather coats

7. Leather Skirts

8. Motorbike Jackets



5.2Marketing Plan:

5.2.1 Pricing

There are two kinds of customers that Leather Coordinator have individual customer

and business customer that’s why there are different pricing strategy for both the customers.

Customize merchandises for individual consumer leather coordinator is offering. That’s why they

are charging premium price from the individual customer but in the market, business partners of

Leather Coordinators are charging standard price that is existing.

Value Based Price

According to the customization in merchandises, customers can add new ascribes and

their desired contrive so leather coordinators can accuse value based price at every modify

merchandise.

Cost Based Price

For us in whom certain percent of earnings is charged at cost, it's another pricing

option. Leather coordinator is charge 20 pct of earnings at any cost.

5.1.2 Place (Distribution procedure):

Leather Coordinator is focal point on direct distribution and indirect channel from

beginning to end through any courier/logistic company to supply goods delivery at set time.

5.1.3 Promotion Strategies

Leather Coordinator is using different tools for promotion they are doing online

marketing through internet. Through e-mail to their business customers they promote their new

product or innovation and via e-mail their customers also tell them that what is their


Internship Report of Leather Coordinatorsrequirements. Another way of promoting the product is telephone through telephone they

communicate with their customers and market their products also knowing the trend of that

market from the customer and customize their product according to that foreign market.

Direct marketing:

Leather Coordinator is also involved in direct marketing one or two employees from the

company go abroad twice in a year for the purpose of marketing. At that time they meet with

their existing customers and as well as their potential customers.

6. Competitive Advantage:

The leather coordinator has several benefits to operate in Pakistan Market some of

these advantages are.

6.1 Availability of low cost skilled and technical labor

Low cost is the biggest advantage of Pakistan and the other advantage is the skilled

labor. Such as manufacturing companies like leather garments and leather footwear

which are producing leather garments and footwear are labor intensive.

Among the other key leather garments manufacturing countries Pakistan has the lowest

labor cost. In leather craft Islamic Republic of Pakistan also has the world's largest

technically trained manpower. The double advantages of low cost and technical skills

gives Pakistan separate competitive advantages of low cost and technical skills.

6.2 Large quantity of raw material:

Accessibility of back upping institutions Islamic Republic of Pakistan is the largest farm

animal holding country with 21 percent of the large animals and 11 percent of small

animals in the world.

The big population of cattle, buffaloes, goat and sheep that the country possesses

ensure that Pakistan has 10% of the world’s raw material base.

Much sought after and in addition, some of the leather available in Pakistan is insurance

premium quality that’s why Pakistan is also the big exporter of raw leather.



7. PESTEL Analysis:

7.1 Political Situation

The political situation of Pakistan is not satisfactory. Due to rapid change in the

government every government set its own trade policies. Government should apply the

sustainable policies for the benefit of the exporter as well as investors.

Stability in political environment

Government policy and law that regulate or tax business

Government’s position on marketing ethics

Government’ policy on the economy

7.2 Economic situation

The economic condition of Pakistan also affect the foreign investor increasing inflation

rate make the cost of production high and thus reduce the profit margin of the investor high

flexibility in exchange rate also adversely affects on the international deals of organization.

Interest rate

The level of inflation

Employment level and per capital income level

Long term prospect for the economy gross

Domestic product GDP per capital

7.3 Social situation:

The change in life style of the people affects the growing demand of the unique tanning

industries private ltd. The change in lifestyle and need in different demo graphing also affect the

demand of the customer. Due to this change in lifestyle people demand high quality products LC

private ltd. are meeting this demand by having latest machinery.


Internship Report of Leather Coordinators Attitude to foreign products and services.

Life style of people

7.4 Technological Factor:

Technological Advancement in all sectors of country has changed the entire

socioeconomic environment. Especially in the leather sector there is a lot of technological

development. LC private ltd. has excellent computerized machines and device and have made

extension in its present setup by installation of well advanced technology imported from china.

Improvement in technology for production of cheap products

Introduction of new way to communication with customer

Automation

Rate of technological change

Environmental and ecological aspect

Barriers to entry

7.5 Environmental Factor:

The physical environment is also a key issue for firms operation in any given national

market and consideration should be considered two how firms treat the physical environment

and the impact this has on the business, but the impact the physical environment generally has

upon a business, general term, the physical environment which LC operates within the SWL

may seen as relativity benign in comparison to other parts of the world which suffer from high

intensity natural disasters such as earthquakes, hurricanes and forest fire.

7.6 Legal Factors:

Like all business, LC must conform to the legal minimum standards which are as

enforceable jurisdiction. The case of LC operations legal element may be seen as more

complex given that the company must comply with both UK law and EU law. Some of the key

legal regulations which affect LC in the SWL are consider below:


Internship Report of Leather Coordinators Maximum wage legislation

A key piece of legislation in the SWL which affects organizations such as LC with a large

number of low paid workers is that of the various minimum wages regulations.

8. SWOT Analysis:

SWOT analysis is key to measure the performance of an organization and its

environment. SWOT analysis includes the internal strengths and weaknesses and external

opportunities and threats of an organization. This is a sort of performance appraisal of the

organization. By seeing its strengths, organization tries to overcome its weaknesses, minimizes

its external threats and try to avail and hit the available opportunities. Hence, SWOT analysis

evaluates the performance and helps in taking the important decisions. The SWOT analysis of

Leather Coordinator is done in order to know its performance in current scenario.

8.1 Strengths: Strong market image in foreign market

Company certified by ISO 9001

Labors are available low rates

No transportation cost because staff belongs to Local town

Rate of growth increase day by day and meet the demand

Advantage of self-backed tannery they are producer of their raw material

Supporting Policies of the government

Able to adopt technological change and change in trend

Leather coordinator has enough resources Ability to handle Large projects

Strong management efficient in decision making

Produce leather garments in bulk quantities achieves the economies of scale and saves

much cost.

Continuous improvement in operations

8.2 Weaknesses: International price fluctuation


Internship Report of Leather Coordinators Centralized power delegation

Lack of technological inputs

Absence in the global fashion market

Unawareness of the international standers

Huge labor force resulting huge labor cost

8.3 Opportunities:

To go up in domestic market

Growing fashion consciousness globally

Use of information technology

Use of e-commerce in direct marketing

Promotion of products in Pakistan

Capturing the customers from business expos

8.4 Threats

Hard and fast international standards

Lack of communication skills

Major component part of the company is unorganized

frequent changing currencies

Difficulty in obtaining the loans resulting in high cost of borrowing.



9. Recommendations:

Full utilization of available resources

Remove the loose tolls and old spindle machines which are “white elephant”

Proper use of energy power plant to avoid power break down

Proper incentive plan for the worker &employee

Proper quality control to increase the demand

Proper control on manufacturing cost, which is too high

Proper control on financial expenses

Proactive measures for the workers and machinery should be introduced

Under the experienced parsons it is observed that in most of the departments

Quality staff is appointed ,if properly qualified staff is appointed that will give a great

push to the business

Company should prepare cash budgets to meet the requirements of creditors and to

cover the amounts from debtors and at proper time

A defined internship program should developed for the internee



Learning as an Internee:

Internship in Leather coordinator was my first working experience in my career,

before this I never ever work in any organization as an employee or intrnee of

that organization. It was a chance for me to explore my abilities and to implement

the course, which I studied specially in BBA. I, did my internship in different

departments Leather coordinator for more than six weeks and in that duration, I

got the opportunity to identify that who the HRM, Marketing and production

department works. The reason for selecting Leather coordinator for internship is

that it is the sector, which provides multi-services and products to all around the

globe at one time & secondly, Pakistan is the big exporter of leather garments all

around the world and generating the revenue from the export of leather so it

helps me to know about how leather industry of Pakistan worked. My internship

experience gave me a good learning experience because I had the freedom to

work with such cooperative and experience staff.

At the time of joining as an Internee in Leather coordinator an orientation

program was arranged for us. In which I learn about all departments and history

of the Leather coordinator. I met with General Manager of the Leather

coordinator and get information about respective departments, so that I will be

able to achieve my duties efficiently.

It was the great experience to work in different department of Leather coordinator

as an internee. I worked two weeks in each department and I gained lot of

information from each department and now I am capable to know that how HR,

Marketing and Production department actually works.


Internship Report of Leather CoordinatorsDuties and Responsibilities at Leather Coordinator:

In marketing department I checked the e-mails from the customers from

outside the country.

I also reply to the foreign customer via e-mail.

I individually interviewed about 50 people in different markets; offices and

even house hold and ask them different questions about the leather

garments in Pakistan.

I individually verify the invoices of different customers in which the whole

information of payments were visibly mentioned.

In HRM department I checked the attendance register daily and update

the attendance of employees.

I also checked that what thing should required and then make the list of

that things which are required e.g. papers and ink for the printers etc.

In Production department I learned that how Production department works

in collaboration with other departments, i.e. cutting, planning, stitching,

purchase etc.

I also worked in SCR department this is the department of production in

this department I checked the records of the samples and some time also

record the results of the samples.

Accomplishments:

Learned how marketing department of Leather Coordinators work.



Learned the practical implication and implementation of planning and operations

department of Leather Coordinators.

Gained firsthand knowledge of how production department works in collaboration

with other departments, i.e. Cutting, Planning, Stitching, Purchase etc.

Worked with Inventory control and purchase Department and learned how to deal

with customers orders.

Learned the importance of record keeping in hard and soft data formats.

Learned how the HRM department works and how it utilized the human resource

in well mannered way.



References:

MR. Zeeshan (IT Department )

Leather Coordinator

http://leathercoordinator.com/

http://www.scribd.com/doc/24975694/Analysis-of-Leather-Industry-in-Pakistan

http://en.wikipedia.org/wiki/Leather_jacket


http://en.wikipedia.org/wiki/Leather_jacket

http://www.scribd.com/doc/24975694/Analysis-of-Leather-Industry-in-Pakistan

http://leathercoordinator.com/

tayyaba report

Documents

kinds leather garments

leather jackets production

history of leather industry

best leather exporter

different opportunities

swot analysis

internship tenure

different departments