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EXECUTIVE SUMMARY

1. Tyre industry of Pakistan is well established where growth rate is


increasing every year. Its market is also very competitive. There are
number of foreign and local suppliers including General Tyre
Company Karachi, Silver Stone Tyre Company Peshawar, service
Industries Ltd Gujrat and King Tyre and Rubber (Pvt) Ltd Lahore.
2. Silver Stone Tyre Company is Pakistan’s leading tyre manufacturing
company established on 18 August 1990 with Rs: 40.00 million
authorized capital. Being in the field of automobile tyre for long time
the management of company has developed a philosophy of harmony,
service, creativity and is providing quality product to its consumers.
3. The purpose of this report is to study the overall activities, processes,
and performance of the company with special focus on the Sales and
Marketing Department of the company.
4. The Silverstone Tyre Company was established on 18-08-1990 and
was registered with the Registrar of Joint Stock Companies. There are
thirty-nine shareholders of the company who have been issued a capital
of Rs: 31,160,000,00. The company imports raw material from
European, and East Asian, countries. It produces different types and
sizes of tyre and tubes. The company target market is almost all the
major big cities of Pakistan, company also have some prestigious
clients like GHQ Rawalpindi and WAPDA Lahore. Chief executive is
the head of the company followed by chairman and than by the
managers of their particular departments.
5. Sales and Marketing Department is headed by the Sales and Marketing
Manager followed by Sales and Excise Officers, they have their own
duties and responsibilities. The company has also a proper procedure
for customer complaints, customer feedback and customer satisfaction.
Finance and Accounting Department is headed by the finance
executive of the company followed by Chief Accountant and other
officers and assistants all of them have their own duties and
responsibilities. The company also maintains accounting books for
initial accounting entries.

Report Findings are


Some of the major problems of Silverstone are:
a. There is no provision for extensive training and development
programs, and employees are selected on previous experience and expertise
b. The company is relying mostly on short-term loans and funds,
which is dangerous, because of not being able to provide adequate short term
financing in tight money periods.
c. Current liabilities of the company have increase because of raw
material purchase on credit. Also the average collection period of the company
is high, as compared to the previous year.
d. The company is following an extremely conservative set-up both in
finance and general administration. The company does not undergo any formal
planning sessions. Too much reliance on spot decision making.
e. There is no concept of promotion activities like advertising,
although the company in using some sales promotion tools, but it still needs
some improvement.

Report recommendations are


a. The company should provide better training facilities to the employees
in whatever limited resources are available. The company should
provide better working environment and incentives to its employees.
The company needs to follow Management by Objectives (MBO)
principles. Company also needs to pay special attention to the
promotion activities with special emphasis on advertising.
b. To protect against effect of short term financing in tight money period,
the company should rely on long-term fund to cover short-term needs.
c. The company needs to follow some aggressive policies of growth in
both the finance and general administration. The company also needs
to develop an effective standard costing system, which will provide the
opportunity of objective analysis of Cost of Goods Sold Statement and
Income Statement.
d. Receivable collection channels need improvement. Inventory costs
should be reduced by properly maintaining the accurate level of
inventory and also current liabilities should be reduced, by equitably
calling its debts especially to the suppliers of raw materials.
e. As mentioned, the company has no concept for promotion activities
like advertising for which an action plan is given in which the kind of
advertising, the timing and the channel for advertising is given.

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