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Shamim & Co. (Pvt) Ltd Multan

Shamim & Co. limited Multan

Submitted By:

Zafar Saleem

MB-08-64

Submitted To:

Madam Javeria Abass

Internship Report

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Acknowledgement

I pay special thanks to ALLAH Almighty who bestowed me the opportunity, courage

and confidence to obtain more knowledge to complete my internship program, which will

facilitate me greatly in my intellectual development and skills capitalization.

I would like to submit my deepest gratitude to my parents, whose prayers always

supported in every task of my life and my teachers, who really guided me to enhance my

learning in Shamim & Co. (Pvt) Ltd Multan.

I am also very thankful to Mr. Muhammad Afzal , Mr. Mansoor Ahmed, Mr.KhurramShahzad, Mr. Muhammad Tahir, Mr. Muhammad Tahir Ameen, Mr. Haider Ali Abidi,

who gave me very valuable knowledge about the workings in their respective

departments.

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Preface

Institute of Management sciences has its prime objective to develop trained managers by

offering them broad knowledge in a number of business areas and thus preparing

successful management careers. One step to achieve this objective for students is to

exercise internship program in any recognized organization. So this internship program

facilitate the students to gain some understanding of complete working of the

organization and at the same time enables the students to face challenges in their

professional life by sharpening their skills of decision making, leadership,

communication and team work.

Career Development Center in BZU Multan issued me letter for internship at “Shamim

& Co (Pvt) Ltd Multan”. I submitted letter in HRM office of Organization. After passing

the internship test I joined the organization on Monday 21st of June 2010. I completed

my six week internship from 21st of June to 31st of july 2010.

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Management of Shamim & CO.It Includes:

Managing Director: Alamgeer Khan Tareen

GM Sales& Marketing: MR Amir Hameed

GM Production: MR Ijaz

GM Finance: MR Sohail Butt

Manager Managements Accounts: Mr Ch. TAHIR Ameen

Manager MIS: MR Rizwan Zafar

Manager HR.D: Miss. Parsa Habib

Manager Shipping: Mr Major Farrooq

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Organizational Structure

Internship program

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l Manager

les

General M anager Finance

General Manager

Operations

ager QualityControl

Manager F inance Manager Account

Manager Sales &

Marketing

Manager AdminManager Personal

Manager Shipping




During my six week internship program, I was moved through following departments:

1. Human Resource Department

2. Accounts Co-ordination Department

3. Supply chain Department

4. Managements Accounts Department

5. Finance Department

6. Audit Department

HUMAN RESOURCE DEVELOPMENTMy 1st week was in Human Resource Department. This department deals mainly with a

significant asset of the organization namely human resource. Miss Parsa Habib is

manager of this department. Mr. Muhammad Afzal and Mr. Muhammad Tahir are

coordinating her.

Human Resource department is one of most important part of any organization which

performs the activities for staffing the organization and sustaining high employee

performance. The Human Resource mfg. process is as follow.

Recruitment procedure

Major sources of potential job candidates are

Internal Search Advertisement

Employees Referrals

School placement

Selection devices used for selection of graduates, masters & MBSs are

Application form written tests (English, Math, business/Engineering essay)

Interviews for worker level job where qualification and skill requirement is low, this

formal procedure is not adopted rather candidates abilities are fledged by department

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head and sent to factory manager for approval. Orientation is the introduction of new

into his or her job & the organization. This is for few selected persons in NBC

training is generally on the job employees in all departments are bearing by the timeor with the help of seniors.

The organization provides compensation benefits to its employees such as:

Accommodation

Holidays

14 Annual

10 Casual

16 Medical with 112 pay. Annual pay

increment & bonus.

Medical facility

Mess

Time office maintains personal file of each employee, daily attendance, leaves,

incentives & commission etc., job descriptions and organizational charth are availablefor all employees. Employees are rotated from one department/post to other on

request or when required. Payroll system.

Recruitment Process

After collection of CVs a test is conducted. For all four levels there are different types of

tests available. If the applicant passes the test then a realistic job preview is done. In

which the applicant is shown the job environment and responsibilities.

After the RJP further interviews are collected.

The manager of HR takes 1st interview. It is an unstructured type of interview. The

manager of respected department takes 2nd interview. This is a structured interview.

After this GM and a panel of mangers take a 3rd interview. This interview is optional.

Sometime it is taken and sometime not. It depends upon the level of job.

Final Selection:

After clearing all interviews final selection is made.

Placement:

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Then employee is placed on his job.

Specifying jobs and roles:

When the new employees are hired the HR department specifies the job and the role of

the new employee in the organization, which he will play in the future. In other words job

specification and HR department does job description

Training:

Then employee is trained. For this purpose On the job training is used.

Evaluation:

Evaluation of employees is done by using software. This software helps the HR

department in evaluation of employees. Evaluation is done on monthly basis.

Feed Back:For feed back company uses the 360 degree rule. This enables the HR department to get

feed back from every level and every side. Further feed back is provided and received by

each employee.

Career developmentCareer development is the important function of the HR department because all the

training programs are initiated by this department and therefore it plays a vital role in

career development.

Outsourcing:HR department also outsource employees which are above manager level. For this

purpose this department gets services of a recruiting agency named “Abacus Recruiting

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Agency Lahore”. So Shamim and Co. acts as a client of this agency for hiring of staff

members above manager level.

Preventing violence in the workplace:

Due to the good policies of the Shamim & Co. there are no unions and the HR

department is providing the peaceful working environment to the employees by

preventing the violence.

Ensuring safety at the workplace

Providing safe working environment to the employees in the responsibility of the HR

department and it has a check over it. Particularly employee's safety is ensured in the

production department in order to avoid the loss.

Transfer and promotions

All the transfer and promotion decisions are made by the HR department. But in case of

senior manager a meeting is conducted and the decision is made whether to promote or

not.

My activities in HR departmentI worked with Mr. Afzal and Mr. Tahir in this department. They helped me out to learn,

how they select and hire new employees. I also learnt how they are managing all

departments.

Accounts coordination department

My 2nd week was in the accounts coordination department..

Mr. Khuram Shahzad is assigned the task of payment to supplier, others department

and employees.

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Function of department:

This department is basically a service department.

The goal of the department is to make the payment of payable to supplier and

others timely through a proper channel. Supplier submits its Bill to respective department and that department sends it to

Account Co-Ordination department.

This department verified each bill and cross checking is made with account

department.

Mr. Khurm Shazad and Mr. Abdurehman look after the production budget.

For production budget the main concern is the machinery maintenance. Because a

working machinery is very much important for production. These includes

• Daily/Routine maintenance budget

• Seasonal/Annual maintenance budget

• New machinery budget

Mr. Haider Shah and Mr. Nauman are concerning with the sales budget.

This budget includes

• Publicity budget ( Banners, posters, gift, paint)

• TA ( Traveling Allowance)

• DA ( Daily Allowance )

• TOT ( Tools of Trade)

• Department expenditure

• Insurance Payment

In the beginning large budget is approved from the Managing Director Alamgeer Khan

Tareen. These payments subtracted from annual expenditure and production budget.

Purpose of department:

Bill delivery and receiving timing is noted.

Provide help to every department through one window operation in accounts.

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Every department has a Co-Coordinator who looks after all the payment of that

department.

Make payment through cash if amount is less than 10,000 Rs and more than

payment is made through cheque.

In case of any problem and error

The issue is discussed with the GM Finance Sohail Butt

My activities in accounts coordination department

Mr. Khurram Shahzad and his team cooperated with me very much. I worked mostly with

Mr. Haider Ali Abidi. I learnt there how to give exclusive rights to their distributors. How

they do make agreements with them. I learnt how they maintain records of production

budget and sales budget etc.

Supply chain department

My 3rd week was in Supply chain department. This department is working under the

supervision of Mr. Abdul Qadir

Assistant Manager of Supply Chain.

Function of department: Mr.AbdulQadir looks after the procurement of raw material.

These raw material include

Labels

Plastic Bottles

Glass Bottles

Glue

Pallets and shells

Cartons

Layer Pad

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Case Pad

Crowns

Caps

Preform

CO2

Shrink and stretch sheet

Function of department:

Make the timely availability of raw material purpose.

Make the timely payment to supplier.

Build good links with the supplier.

Planning of future raw material.

Availability of raw material for future at least 1 month.

Future target is set like Initial+ X% Growth.

Purpose of Supply Chain Department:

Mr. Abdul Qadir has been performing his job very efficiently.

• He himself set the target of raw material and approve it to

CFO (Chief Finance Officer) Mr.Sohail Butt and GM Plant Mr. Sarwar.

• Mr. Abdul Qadir is very good planner.

• While looking at the current requirements he set the target for future

o Cash flow.

o Required raw material quantity.

Management accounts department

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My 4th week was in the management accounts department. This department is working

very efficiently under the leadership of Mr. Asim. He is the manager of this department.

This department is very well established and having devoted workers.

Function of this department:

• This department prepares almost more than 57 reports.

• Receive data from different department to prepare these reports like shipping,

production, MIS.

• These reports are send to MD (Managing Director), GM Sales and GM Finance

etc to evaluate the performance.

• While making these reports they convert all brands into standard 250ML.

Reports prepared by this department:

Shipping department:

Daily load comparison report

Filled stock position

Through put report

Amanat comparison report

FIFO Implementation

Production Reports:

Daily raw material reports

Daily CO2 Comparison report

Plant wise yield report

Daily shift wise yield report

Daily 250ML Production losses

Batch Consumption Report

General Reports:

Labor cost tracking report

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Daily permanent staff overtime

Diesel consumption and comparative summaries

My activities in management accounts department

I worked with them to prepare many reports which are prepared on daily and shift wise

basis. For example these reports include daily losses reports, daily yield reports etc. I

learnt how to calculate the stock, How the measure the quantity which is loaded out.

Finance department

My 5th week was in the finance department. This department is under the

supervision of Mr. Shoaib Tirmazi. This department looks after the insurance of

all the Assets of Organization. Leasing like direct leasing and sales and lease

back.

Letter of credit like Irrecoverable LC and Irrecoverable and Confirmed LC.

Clearance of shipment is also comes under this department. Short term and long

term financing too.

This is one of the most important departments of this organization. This

department made the financial plans of the organization, they analyze their

resources and then concise other reports and gives the whole budget the

organization can afford. Another job of this department is to make the complete

record all financial and non-financial transactions made inside as well as outside

the organization

Functions of Finance departmentInsurance of Shamim & Co. (Pvt) Ltd Multan.

Insurance of all the assets of Shamim & Co. (Pvt) Ltd Multan.

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These assets includes

o Machinery

o Building

o Stock ( Empty & Liquid )

Leasing:

There are two type of leasing

• Direct leasing

• Sales and lease back

Direct leasing:Suppose you want to buy a new asset (Machinery). You go to bank ask

him to purchase on the behalf of you and bank make the payment. You take that asset

from bank on lease. You make the payment to bank in Installment with mark up. At the

end asset will be your when you pay all the installment of that Machinery.

Sales and Lease back:

You sale your working asset to bank when you need short/long

term finance to fulfill your operating expense or any of the others. You have to make the

payment to bank in installment with mark up/interest. After the complete payment assets

again come under the organization ownership.

Letter of Credit:

There are many types of Letter of Credit

• Irrevocable Letter of Credit

• Revocable Letter of Credit

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• Irrevocable and Confirmed Letter of Credit

• Confirmed Letter of Credit

• Un-Confirmed Letter of Credit

Modes of payment:

By Sight Payment

By Acceptance

By Negotiation

By deferred payment

BY SIGHT PAYMENT:

• When shipment is delivered to buyer

• Supplier submit complete documentation to bank

• Bank inform the buyer through the letter or simply calling it

• Then buyer has to make the payment to beneficiaries

Document Delivered Against Acceptance (DDAA OR DD):

• Bills of exchange are used and organization gives acceptance for this.

• Buyer has to make the payment after receiving the whole shipment after the date

of Truck receiving in 180-days.

LC Procedure:

• Letter of Credit can be local/Inland or for foreign supplier

• Only difference between local and foreign LC is that for foreign LC Import Form

or Export Form is submitted by bank to State Bank of Pakistan while in local it’s

not submitted.• In Import/Export Form detail of goods, quantity and prices are mentioned.

• Organization want to buy raw material, machinery etc from supplier

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• Organization contact the supplier

• Supplier send detail of requirement with the rates

• Supplier demand for letter of credit

•

Buyer sends a request to its bank along with the detail document of buyingmaterial, quantity and price.

• Bank make the letter of credit

• Send it to buyer and seller

Shipment Clearance procedure:

For clearance original document are require. These document include

Commercial Invoice

Air Way bill or bill of lading

Packing list

• For clearance purpose organization higher an Agent.

• Agent go to custom house and told them that he be authorized by part

• Show them the original document.

• After this there are some duties and charges on shipment like

• Custom duty

• Excise duty

• Delivery order charges

• Port charges(by sea)

• Air port charges(by air) good own rent

• Agent own service charges

Then Agent sends detail of charges for each above. Organization makes the draft for each

according to Agent. Confirmation for each is received from Agent that all payment is

made truthfully. Foreign companies have their Agent in Pak (Karachi etc).

Debt Advice:

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• Organization has cash balance with bank

• Bank send daily report of debt advice

• Suppose payment is made to supplier

My activities in finance department

In finance department I learnt about leasing, insuralnce procedures and shipment

clearance procedures etc.

Applications of classroom learning in the organization

I applied different concepts, which I learnt in my classes. For example

• Hiring and selection

• Interviewing new employees

• Supply and distribution channels

• Customer relationship

• Planning

• Leading

• Controlling

• Marketing

• Promotion

Audit department

My 6th week was in the “Audit Department” of “Shamim & CO (Pvt) Ltd Multan” This

department audits the empty Glass bottles, empty shells, Pallets on daily, weekly and

monthly basis. The department also control and maintain the record of “Khanpur Depot”.

This department is interlinked with the Management Account.

Function of Department :

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• There are two types of empty in factory.

• Production empty at factory

• Shipping empty at factory

•

In this department• Audit of MIS department (Mela credit, Liquid Credit, Contingency short/excess

reports).

• Audit of empty Glass bottles, empty shells, Pallets on daily and monthly basis.

• They daily verified the empty of shipping and production department.

• Verification of empty stock and liquid filled stock is also made.

• The department also control and maintain the record of “ Khanpur Depot”

•Daily reporting of sale, cash and expense are made.

Purpose of Audit Department:

• Check the availability of empty bottles to meet the demand of production.

• Accurately verified the empty of shipping and production.

• Check whether empty is short and excess.

• Daily report are made and matched with the production and shipping department.

• Plastic shell, Pallets verification are also made regularly

• Verification of empty of different depot.

My activities in Audit department

I worked in department to audit empty glass bottles. I learnt how they audit different

departments and maintain records.

What I learnt in the organization

During my internship program I learnt a lot. For example

• How to deal with seniors and subordinates

• How to communicate with others

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• Discipline

• Punctuality

• How to lead my subordinates

•

How to maintain different records

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Financial Analysis

LIQUIDITY RATIO’S:

These ratios are important in measuring the ability of a company to meet both its shortterm and long term obligations.

Working Capital:

Working capital is an indication of the short – run solvency of business

Working Capital = C.A – C.L.

Year 2005 2006 2007 2008 2009CA 34317964

0

390387892 468465470 562158564 674590277

CL 28025363

5

326286103 375229018 431513371 496240376

Working Capital 62926005 64101789 93236452 130645193 178349901

Current Ratios: This ratio measures the short-term debt-paying ability of the company

Current Ratio = LC

AC

.

.

Years 2005 2006 2007 2008 2009

CA 343179640 390387892 468465470 562158564 674590277

CL 280253635 326286103 375229018 431513371 496240376

Current Ratio 1.2 1.2 1.25 1.30 1.36

ACID- TEST RATIO:

This ratio is like the current ratio but excludes current assets such as inventories and

prepaid expenses that may be difficult to quickly convert into cash.

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Quick Ratio=Quick Assets / Current Liabilities

Years 2005 2006 2007 2008 2009

CA 42218250 49449960 57856450 67692050 79876619

CL 280253635 326286103 375229018 431513371 496240376

Q Ratio 0.15064301 0.151554 0.1541897 0.15687127 0.16096356

DEBT MANAGEMENT:

This is the most common measure of the ability of a firm’s operations to provide

protection to the long-term creditor.

TIME INTEREST EARNED:

TIE = EBIT /INTEREST EXPENSE

YEAR 2005 2006 2007 2008 2009

EBIT 13130022 15544100 18432038 21643604 25539453

Interest Exp 1644312 1061878 1536003 1812483 2138730

TIE 8 15 12 11 12

DEBT RATIO’S:

This ratio measures what portion of a company’s assets is contributed by creditors.DEBT RATIO: TD / TA

YEAR 2005 2006 2007 2008 2009

TD 281275235 327307703 376403858 432864437 497794102

TA 385165619 439795604 527754820 633305785 759966942

DebtRatio 73% 74% 71% 68% 65%

D/E RATIO:

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This ratio indicates the extent to which debt is covered by shareholders’ funds. It reflects

the relative position of the equity holders and the lenders and indicates the company’s

policy on the mix of capital funds.

D/E = TD / TE

YEAR 2005 2006 2007 2008 2009

TD 281275235 327307703 376403858 432864437 497794102

CE 103890384 112487901 151350962 200441348 262172840

D/E 2.71 2.9 2.5 2.2 1.9

ASSET MANAGEMETNT:

These ratios are important in measuring the efficiency of a company

1. Days sales in receivable:

Shows both the average time it takes to turn the receivables into cash and the age, in

terms of days, of a company's accounts receivable

Days sales in receivable =365/

Re

Sales Net

ceivablesGross

YEAR 2005 2006 2007 2008 2009

A/R 16881442 15527617 20156759 23180273 26657334Sales 849952926 885258201 1062309841 1274771809 1529726171

DSO 7 6 7 7 6

TOTAL ASSET TURNOVER:A company's effectiveness in generating sales revenue from investments back into the

company. The higher the Total Asset Turnover is the more effective use of the company's

investments. Total Asset Turnover can be very useful if you watch what actually makesup the Total Assets of the company. A company with low inventory and strict credit

policies to keep Accounts Receivable low will help the Total Asset Turnover look even

better. Of course it depends on all of the company's Total Assets.

TAT = SALE / TA

YEAR 2005 2006 2007 2008 2009

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Sales 849952926 885258201 1062309841 1274771809 1529726171

TA 385165619 439795604 527754820 633305785 759966942

TAT 2.21 2 2 2 2

Inventory Turnover:

This ratio measures the number of times merchandise is sold and replaced during the year

Inventory turnover: Cost of goods sold/ Average Inventory

YEAR 2005 2006 2007 2008 2009CGS 587227740 644574970 741261215 852450397 980317957

A Inventory 300961390 340937931 388669241 443082935 505114546

ITO 2 1.9 1.9 1.92 1.94

PROFITABILITY RATIO’S:

Profitability Ratios show how successful a company is in terms of generating returns or

profits on the Investment that it has made in the business. If a business is liquid and

efficient it should also be Profitable. Ability to provide financial rewards sufficient to

attract and retain financing.

RETURN ON EQUITY (ROE): The Return on Equity of a company measures the ability of the management of the

company to generate adequate returns for the capital invested by the owners of a

company. Generally a return of 10% would be desirable to provide dividends to ownersand have funds for future growth of the company

ROE = N.I / C.E

YEAR 2005 2006 2007 2008 2009

NI 11485710 14482222 18102777 22628471 28285589

CE 103890384 112487901 151350962 200441348 262172840

ROE 11% 13% 12% 11% 11%

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RETURN ON ASSET’S:

The Return on Assets of a company determines its ability to utilize the Assets employed

in the company efficiently and effectively to earn a good return. The ratio measures the percentage of profits earned per dollar of Asset and thus is a measure of efficiency of the

company in generating profits on its Assets.

ROA= N.I / TA

YEAR 2005 2006 2007 2008 2009

NI 11485710 14482222 18102777 22628471 28285589

TA 385165619 439795604 527754820 633305785 759966942

ROA 3% 3.30% 3.40% 3.60% 4%

NET PROFIT MARGIN: The Profit Margin of a company determines its ability to withstand competition and

adverse conditions like rising costs, falling prices or declining sales in the future. Theratio measures the percentage of profits earned per dollar of sales and thus is a measure of

efficiency of the company.

NPM = NI /SALE

YEAR 2005 2006 2007 2008 2009

NI 11485710 14482222 18102777 22628471 28285589Sales 849952926 885258201 1062309841 1274771809 1529726171

NPM 1.35% 1.64% 1.70% 1.80% 1.85%

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VERTICAL ANALYSIS (COMMON SIZE ANALYSIS

From vertical of Shamim&Co (Pvt) Ltd Multan I have concluded that the

performance of Organization is good from previous five years. In the vertical analysis I

have calculated the values of all items of Balance Sheet and income Statement in

percentage with respect to the sales and total assets. From these calculations I come to

know that the Current Assets and fixed asset are increased in every next year.

Shamim&Co (Pvt) Ltd Multan Operating Income is increasing and Net Income

increasing in the every next month as total percentage of sales. Shamim&Co (Pvt) Ltd

Multan is able to receive its receivable on time due to which it receiving cash time by

time and able to pay back to its creditors on time. It means its average collection period

as well as the average payment period of the firm are good.

On the basis of my conclusion I can say that the overall performance of Shamim&Co

(Pvt) Ltd Multan is good from previous five years

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Common-sizePercent

Analysis AmountBase Amount 100%=

×

Financial Statement Base AmountBalance Sheet Total AssetsIncome Statement Revenues

Financial Statement Base AmountBalance Sheet Total AssetsIncome Statement Revenues

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Horizontal Analysis

From horizontal analysis of the Shamim&Co (Pvt) Ltd Multan I have concluded that

over all performance of the firm from previous five years is very good. From the last five

years its profit is increasing. Organization focusing on expansion in the last 3years as a

result of expansion its Fixed Assets 2008 increased by 35% and in 2009 increased by

60%.

Similarly current asset were also increased 20-25% in 2007, 2008 and 2009. But relative

to this its current liabilities increased less. So, it had enough working capital to which

was enough for solvency of organization. In 2005, 2006, 2007 Common Equity increased

while purchasing Fixed Assets.

Shamim&Co (Pvt) Ltd Multan its assets efficiently as result of this generating more profit. So, we can say the performance of fixed asset is up to standard. Profit of

Shamim&Co (Pvt) Ltd Multan is also increasing 2005,2006,2007,2008 and 2009.

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TimeThe term horizontal analysishorizontal analysis arises from left-to-right (or right-to-left) movement of our eyes as

we review comparative financial statementsacross time.

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PEST Analysis

The PEST analysis examines changes in a marketplace caused by the following factors.

Political Factors

Economical Factors

Social Factors

Technological Factors

POLITICAL FACTORS:

In Asia and especially in Pakistan where the political environment is not stable no

Government has completed its tenure except the last and the politics also a greatinfluencer on the different industries of the country. Now following are the effects on the

beverages industry.

• The govt. decides that what will be the rates of sales tax

• The rates of main operating variables inputs such as the Electricity are also

decided by the govt.

ECONOMICAL FACTORS:

The country like Pakistan whose economy is not strong enough is affected by so many

economic variables which are the following.

• Low literacy rate is a problem due to which rural customers are not able to

differentiate between PEPSI and Coke and etc.

• Employment opportunities will be higher.

• Increasing demand of PEPSI requires establishment of new production plants.

• Combined pricing decisions with mutual agreement between PEPSI and Coke.

SOCIAL FACTORS: The social factors of each society and culture are

different from each other so these also influence the industries as well.

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• Now it has become a trend that soft drink should be served in almost every

gathering.

• Fast food popularity among teenagers has led to the increase in demand of PEPSI.

• Social welfare program is also active at PEPSI for example PEPSI donated 1

million Rs. For helping recent earth quake victims.

• They have been sponsoring different cricket events and Pakistan cricket team for

almost 10 to15 years.

•

TECHNOLOGICAL FACTORS:

Today is the era of Technology whether it is Information Technology or Production

Technology so the PEPSI is also affected by these. Following are some of these.• Previously there were separate production plants for the production of specific

brand size.

• Now they have installed a new production plant which is capable of producing

different brand sizes at the same time.

• The plant which they installed at the time of establishment has now been

grounded.

• The sixth production plant which is currently being installed is imported from

Germany.

• The seventh production plant which is currently being installed is the latest that is

imported from Italy.

• There is no institute in Pakistan providing engineering training regarding

beverages production plants so PEPSI people have to arrange onsite training for

its maintenance engineers to learn working with latest technology plants

• There is very limited automation to keep production record. Most of the record is

maintained manually but currently they are trying to shift towards fully automated

production control system.

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SWOT Analysis

STRENGTHS:

• High brand image and customer loyalty

• Pepsi is currently the market leader with more than 82% of market share

• Inspection of quality is regularly performed by Country Office to insure

consistent quality products.

• Effective and efficient management of distribution channel allows Pepsi Multan

to cover a huge geographical area.

• On site training of 4 to 6 months enables plant engineers to manage plant

operations effectively so that machine downtime is reduced to minimal.

• Very huge production capacity 500,000 per day.

• Pepsi provides its own transport to distributors to cover those geographical areas

where competitors are not distributing their products because of difficulties to

reach there.

• Suppliers are bound to supply material on the terms and conditions specified by

PEPSI

• Strong coordination between different departments

• They have their own R&D department which is responsible for conducting market

research

• They are proactive in their competitive strategies.

• They are having more than one supplier for a particular material to avoid stock

outs in case of high demand or supplier’s inability to ship material.

• Daily revision of production schedule based on daily demand.

• They are financially very strong and require no financial help from country office

• Their plants are capable of producing round the clock.

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• Coca- Cola is on its way to get market share

• Amrat and Makka cola also trying to get market share

• Changes in consumer purchasing power

• Increase in competition

• Inflation

• Due to blame of religious group

• No proper employee’s orientation programs

Suggestions

On the basis of SWOT analysis I observed that shamim & Co. Multan is working in avery well manner. But I think they are lagging in some areas. So they need to

improvement in some aeas. I have following suggestions to cope with their weakness and

threats and take competitive advantage of theor strengths and opportunities.

• Taste

As the climate of Pakistan particularly Multan is very hot. The people were like sweet

soft drinks as that of Coca-Cola. So there is a need to have slightly sweet drinks.

• Promotional Schemes

Most o schemes introduce by the Pepsi cola are standardized for all the regions. But the

organization should recognize the differences in different regions and then launch the

schemes to get feedback.

• Rules & Regulation

Implementation of rules should be make sure in the organization at any cost. Some

policies need to be redefined.

• Islamic Activities

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There is the perception that Pepsi cola is the Jewish company and it facilitates Israel. The

people who believes & don’t like to drink. So it can be reduce by adding Islamic valued

in the promotional campaigns.

• Motivation

The employees should be motivated to be loyal with the organization. It can be in the

form of incentives and free sampling.

• Online Linkage

All the plants and distributors should be online to increase efficiency.

Conclusion:

Shamim&Co showing profits since last 5years and according to it’s annul reports

its profit is increasing.

Shamim&Co having 85%market share currently and market leader in Multan.

Shamim&Co focusing on continuous expansion especially in fixed assets like

building and installing plant.

The purpose of expansion is to increase its share.

Committed staff is the main reason that it captures more than 85% share of market

share.

A very well-establish distribution network covering whole of the franchise areas.

Company has invested too much money in shape of coolers, visi coolers, counters

and cabin.

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References

I searched the following sites and search engines for this report:

www.google.com

www.SCL.com.pk

www.pepsi.com

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zafar pepsi2222222222222222 final

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