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Prepared by: Abdul Qadir Jilani

ID #: 9960
Course: Human Resource Management

Without the right succession planning put to play in human resources, we build
for the future without a future
Mmanti Umoh
ACKNOWLEDGEMENT

First of all, I would like to express my deep gratitude to Almighty Allah, who enabled me
to undertake such an important task to study about SBT JAPAN.

I also wish to acknowledge the valuable guidance provided by our respected teacher. He
always motivated and encouraged me in the completion of this report.

I am also very thankful to the team of SBT JAPAN which is located in Karachi. They
appreciated the efforts of KASBIT. They have provided all the relevant data as well as
other information relating to my report.
CHAIRMANS REVIEW

In Year 2009 the demand for automobile was sluggish .The industry for cars and light
commercial vehicles experienced 29% decline in the sales volume. The industry sold
107,768 units during the year against 151,517 units last year. Its my pleasure to present
review on the performance of the company for the year December 31, 2009

The demand has depressed during the year due to cost push inflation resulting from
depreciation of Pak rupee, limited financing by banks/leasing companies and general
economic recession.

First half of the year was the worst. Sales volume during this period has dropped by 53%
compared to last period of last year. Second half was somewhat better than first half year.
As it was grew by 33% over the first half year.

The market size of cars has marginal improved by 2% over the last year in the organized
sector. During the year 593,479 units were sold against 580,604 units last year. During
the first half year Demand was 25% lower than same period of last year. However this
loss of demand was offset by the increased demand latter half year.
HISTORY OF AUTOMOBILE INDUSTRY

The growth was relatively slow in the 1950s and 1960s due to nationalization & which hampered
the Pakistan private sector. Total restrictions for import of vehicles were set and after 1970 the
automotive industry started to grow, but the growth was mainly driven by tractors, commercial
vehicles and scooters. Cars were still a major luxury item. In the 1970s price controls were finally
lifted, inserting a competitive element into the automobile market. By the 1980s, the automobile
market was still dominated.

To promote the auto industry the government started the Pak Auto Expo which was had its debut
showcasing in 1986. The Auto Expo of 1986 was a window for technology transfers showing how
the Pakistan Automotive Industry was absorbing new technologies and promoting indigenous
research and development for adapting these technologies.
PORTER FIVE FORCES MODEL IN THE PAKISTAN AUTOMOBILE INDUSTRY:

Threat from New Players: Increasing Market Strength of


Most of the major global players are present in the Suppliers: Low
Pakistan Market; a few more are expected to enter. A large number of
Financial strength assumes importance as high automotive component
investments are required for building capacity. suppliers are present in
Access to distribution network is important. Although industry
important for all segments, having a distribution Automotive players
network in rural areas is vital for two-wheeler are rationalizing their
makers. vendor base to achieve
Lower tariffs in the post-World Trade Organization consistency in quality.
era may expose Pakistan companies to threat of
imports (however, the threat may be mitigated by
non-tariff barriers that may still exist).

Market Strength of Market Strength of Consumers:


Suppliers: Low Increasing
A large number of Increases awareness among
automotive component consumers has raised expectations.
suppliers are present in Thus, the ability to innovate
the Indian automotive (technology being the enabler) is
industry. critical.
Automotive players Product Differentiation via new
are rationalizing their features, improved performance and
vendor base to achieve after sales support is critical.
consistency in quality. Increases competitive intensity has
limited the pricing power of
manufacturers.

Threat from Substitutes:


Low-Medium
With consumer preferences changing, inter-
product substitution is taking place (scooters
are being replaced by motorcycles, and Mini
cars by Compact Mid-size cars.
SBT Pakistan - Profile

Country Name Pakistan

Country Manager Osawa Naoki

General Manager Ali Hussain

Al-Tijarah Center, 6th & 16th Floor


Local Office Address (Karachi) Plot No. 32-1-A, Block-6 P.E.C.H.S,
Main Shara-e-Faisal Karachi, Pakistan.

Local Phone Number +92-21-37137000

Local Mobile Number +92-300-0273201

Whatsapp Number +92-300-0273201

Local Fax Number +92-21-3416-9010

UAN Number (021) 111-111-728

Office No. 09, 1st floor, Al Anayat Mall,


Plot No. 08, G-11 Markaz, Islamabad.
Local Office Address (Islamabad)
051-2362710
+92-300-8238048

Office No 102,103 First Floor


Eden Heights, 6 Main Gulberg,
Local Office Address (Lahore)
Jail Road Lahore
+92-304-4951145

Official Email Address pakistan@sbtjapan.com


ABOUT SBT PAKISTAN
SBT is one of the leading automobile trading companies whose headquarter is located in
Yokohama, Japan. Each and every automobile in our great stock is purchased after careful
appraisal and inspection in Japan, South Korea, United States, UK, or Germany by our discerning
and experienced buyers, so any automobile that we have can be your best choice. Once a
customer buys our automobile, it is sent to the customer in the shortest time possible through
our smooth and prompt procedures. We are now operating our foreign offices in 15 countries to
provide our proud services globally.
Since our first entry into the market, we have been growing with innovative ideas, improved
technologies, and solid systems. Our customers can select cars by using our powerful search
engine from our stock.
We have sales offices around the world and 24/7/365 customer service centers to assist your
purchasing procedures. We are always beyond your screen to help you!
SBT also let registered customers participate in automobile auctions, where you may find your
favorite. Our discerning and experienced buyers can bid for your selection in place of you. We
perform thorough inspection for each automobile, so you never have to worry the quality and
condition of the automobile, and will be surely satisfied with your automobile.
We never stop making efforts for providing our customers with better services, and keep
pursuing higher customer satisfaction.

OUR MISSION

To continuously provide better service to our customers all around the world, and pursue
customer satisfaction with constant efforts and passion in used automobile industry.

OUR VISION

With the growth of developing countries and increased awareness of resource saving, the needs
for used automobiles have been and will be becoming greater and greater. Our worldwide
services will assist and promote your business according to the global trend.
SPECIAL SERVICES

Door to Door Service:

SBT provides door to door service of delivering the purchased unit to the desired customer
location anywhere in Pakistan. The service includes transportation of unit from yard to desired
port of Pakistan (Karachi) to the desired customer location around Pakistan.

Basic Checkup Service:

When a new unit arrives in SBT's stockyard, the unit goes through a basic inspection by our yard
staff. After the inspection detailed pictures of unit are taken by our staff from interior to exterior
to the engine and assembly parts for customer satisfaction.

Translation Service:

Translation of auction sheet is done prior to the auction on request of registered customer. Our
expert translates the auction sheet for a better understanding of the customer on unit, customer
willing to bid.

Clearing Service:

Custom clearing service can be arranged on customer demand. Our reliable clearing agents
provide a satisfactory service to the customer for clearing cars & arranging their delivery
nationwide.

Delivery Service:

Delivery of unit to the desired city as per customer demand is also provided by SBT. The process
is done through local transportation and the unit is delivered to the desired point on customer
request.

IMPORTANT SCHEME AND INFORMATION

Shipping:

SBT Japan ship cars from all major ports of Japan. The journey (sea transit time) takes between
4-5 weeks. We are in contract with all major shipping company that provides satisfactory service
on reasonable rates. We will take care of all export procedures in Japan and arrange shipping for
our customers. Our door to door service means that everything is taken care of for you from
auction site to your desired location. (All checks, documentation, certificates & fees included).
Main Port:

Karachi Port

Freight Schedule:

At least one shipment per week is scheduled for Karachi port from Japan. Therefore, 4 to 5
shipments are available within a month for insuring a fast delivery to meet customer demand.

Import Regulation:

According to Pakistan import policy, for commercial & SUVs, one can import a unit coming under
5years old range. For passenger vehicle, one is eligible to import a 3 year old vehicle from its
manufacturing date.

Import Duty:

Duty structure for import unit is prescribed by Pakistan government. 100% payment of duty is to
be made when unit arrives at the port. Duties are fixed on the unit coming under 660, 1000, 1300,
1500 and 1800cc. Furthermore, for units more than 1800cc, duties are informed by custom
services after the inspection of unit at the port. According to Pakistan policy, duties on hybrid
cars are comparatively less (50%) then normal car. Duty of the car depends on three main factors.

Engine capacity (CC)


Manufacturing year
Hybrid or normal

* Duty for commercial vehicles are different from regular unit which are to be known from
custom house.

Document Handling:

All documents are couriered to customer through DHL to the customer prescribed address. The
documents includes original B/L (Bill of Landing), Export certificate (Tohan) and invoice of unit
purchased.

* Extra available accessories (keys, navigation card) are also couriered to the customer.

Payment:

All the payments should be made to SBT Co. Ltd. beneficiaries in Japan.
CORPORATE STRATEGY
SBT JAPAN is built on the idea of a responsible corporate citizenship thereby managing
environmental, safety & occupational health matters as an integral part of our business. In
fulfilling this responsibility Pak Suzuki adheres to the following principles:

We are committed to provide top quality products to the satisfaction and requirement of
our customers.
We conduct our operations in compliance with applicable environmental, occupational
health & safety laws and regulations.
We recognize the interrelationship between energy and the environment, and we
promote the efficient use of energy throughout our system.
We ensure safe disposal of waste generated from our facility
We minimize the discharge of waste materials into the environment by utilizing
responsible pollution control practices.
We will continuously seek opportunities to improve our adherence to these principles.

As it is clearly mentioned in their Vision Statement that to be excellent all around, and they
always operate in Environment friendly. And their Product always be the environment friendly.
With the globalization of markets, greater foreign competition, and the reduction of entry
barriers, it becomes all the more important to benchmark a companys financial indicators on a
worldwide basis. World stock markets have recently witnessed a return to fundamental financial
analysis. Sound management as opposed to hype will in the long run generate shareholder value.

SITUATION ANALYSIS
In order to plan in a better way we have to perform situation analysis
General Environment
Product Market
Customer Market

General Environment
As we know most of people in Pakistan associated with middle class families and havent got
enough money to buy a Luxurious car. So they purchase economical vehicles such as Suzuki
Mehran, Alto and bikes for their convenience. Nowadays our life becomes very fast and every
one try to reach their destination as soon as possible and life style of people is continuously
changing.

Product Market
Sale Volume and Trend
Growth Rate
Product variety & Prices

Sales Volume
Pakistan's car sales have shown signs of improvement in the early months of 2010, largely thanks
to price reductions on the part of carmakers. Car sales of 10,372 units were up by 28% month-
on-month (m-o-m) in October and were 8% higher than in October 2008.
Although this may appear to be a welcome sign of recovery after a 50% decline in car sales in
FY09 (ending June 2009), the Pakistan Automotive Manufacturers Association (PAMA) has partly
attributed the growth to a rush by consumers to buy before prices were increased again at the
end of October. Several carmakers have raised prices to counter the effects of exchange-rate
fluctuations, which have been adversely affecting margins.

commision
cost of sale
gross profit
140000
120000
100000
80000
60000 sales
40000
20000
0
2006 2007 2008 2009

150000

100000
Production
50000 volume

0
2006 2007 2008 2009

Customer Market:
Customer market and customer buying behavior can be categories:
Demographic Factor
Life Style
Usage Pattern and Behavior
Preference of Specific end Benefit

Demographic Factor:
Age 20 year to upwards
Gender Male and Female
Income starting from Rs.20000

Life Style:
Activities Early Professional, Executives, House Hold, and Business Purpose
Interest Personal Use, Luxury
Opinion Sensitive, Conscious, Responsible and Social
Usage Pattern and Behavior:
Mostly People use such vehicle for their convenience e.g. go for job and for family use, for
Business Purpose.

Preference of Specific end Benefit:


Customers who use such vehicle are sensitive, conscious and responsible people. They tried their
level best to save time as much as possible so they want something which is quality wise good
and also affordable.

SWOT ANALYSIS

Strength:
1) Highest Market Share
2) Low Price Vehicles
3) Resale of Local Assembled Cars
4) Large Distribution Channels
5) Rising per capita income with changing demographic distribution
6) Highly Innovative and deep product line
7) Highly maintained supply chain
8) Well Managed and highly competitive staff
9) Well defined and beau acratic organizational structure
10) Complete understand between Distributors
11) Easy available of spare parts.

Weakness:
1) Scarcity of raw material
2) Bargaining power of supplier is low
3) Lack of coordination and linkage with Government/semi government supporting bodies
4) Less Technical Training Institute
5) Less distribution channels in sub urban
Opportunities:
1) Increasing Demand for Cars
2) Large Market size to operate
3) Global spare part market

PEST Analysis

Uncontrollable environment are those external factors which can prohibit us or can create
hurdles between us and our business. It is also called pest analyses which are as follow:

Political Environment
Pakistan has to face lots of ups and down since its independence. So many governments have
been broken down by military authority and most of the time marsh law applied on Pakistan. In
this scenario no entrepreneur was willing to invest in Pakistan except few. Due to this market
environment wasnt so good in Pakistan. Anyhow Pakistani government never been trustworthy
for any investor.

Legal Environment
As all countries, Pakistan also has some legislation about each sector. But like developing
countries it is hardly being imposed by authorities. Only due to corruption government
encourage smuggling and black marketing. When anyone supported by government or give
more commission to Govt. get inside in the market and they have very soft behavior by
government for any legal action. Such unethical activities destroy all law and legislation.

Economic Environment
Pakistan, an impoverished and underdeveloped country, has suffered from decades of
internal political disputes and external ongoing conflict with India. However, IMF approved
the government policies, encourages by different foreign assistance and renewed access to
global market since 2001.
Socio-Culture Environment
Pakistan has strong culture background and it has been follow in some particular region of
Pakistan strictly. But with the passage of time it is going to change. Thoughts of people, choices,
taste and style has been totally changed. If we talk about the transportation source in Pakistan,
People use buses, pickups etc. for journey.

Technological Environment
Technological factor also very important and we havent control on it. Technology is grooming
with the passage of time. People also want that the product that they have is full of technology.
We never control on technology for example you launched the product last year and your sale
volume on that time is very high but after sometime due to latest invention a lots of substitute
exist in market which effect on your business so you cant hold on it.

Consumer Research
Perception of people

People think the product should have excellent fuel consumption and a good resale
value.
Easily availability of spare parts everywhere even in rural areas.
The quality of product is made according to Pakistan roads and infrastructure.
Product line extension with the very low difference of price.
3S (Sales, Service and spare Parts) at your door step.
Brand Loyalty.
People want such vehicle which doesnt effect on their prestige and also within the
range of them.

HUMAN RESOURCE PRACTICES


HR VISION

Lead and Facilitate continuous change towards organizational excellence; create a learning and vibrant
organization with high sense of pride amongst its members.
HRINITIATIVES

Prepare best Strategic Business Plan to achieve the Vision & Goal
Improve the performance Appraisal system -its process, skill & usage
Improvements in internal & external Training & its effective utilization.
Systematic career planning; Job Rotation; Job Enlargement Job enrichment
Periodic communication meeting at various levels; Roll out of Vision
Retention of Talent

RECRUITMENT FOR FRESHERS

They recruit fresh Graduates from premier Business-Schools across the country in order to
build our future leadership talent pipeline. .

They give plenty opportunities for learning & growth through hands-on experience & rigorous
training sessions. The young talent undergoes a structured induction, buddy & umbrella
mentoring sessions, periodic management inputs and cross functional exposure.

With their exciting career paths coupled with hard work & dedication from your end, they
believe that you will keep on creating success stories in SBT.

Recruitment Process:

RECRUITMENT PROCESS FOR EXPERIENCED

For the last three decades, they have established themselves as the Market Leader in Automobile
sector in Pakistan. They appreciate the Knowledge & expertise that the experienced professionals
bring with them, and they come from diverse backgrounds to strengthen the business pillars and
explore new horizons with us.

They invite applicants, who

Are excellent performers with enthusiasm for constant improvement


Have intense desire to be a member of the organization and its success with a constant
yearn to learn
Are star performers, put in extra effort & are committed to engage in work that
contributes to business success.

Recruitment Process:

TRAINING AND DEVELOPEMENT

T&D Is a subsystem of an organization. It ensures that randomness is reduced and learning or


behavioral change takes place in structured format.
Traditional Approach Most of the organizations before never used to believe in training. They
are holding the traditional view that managers are born and not made. There are also some views
that training is a very costly affair and not worth. Organizations used to believe more in executive
pinching. But now the scenario seems to be changing.
The modern approach of training and development is that Pakistani Organizations have realized
the importance of corporate training. Training is now considered as more of retention tool than
a cost. The training system in Indian Industry has been changed to create a smarter workforce
and yield the best results.

Importance of training

Optimum utilization of resources


Development of human resources
Development of skills of employees
Productivity
Team spirit
Organization culture
Quality
Health and safety
T&D aids in organizational development. Organization gets more effective in decision making
and problem solving. It helps in understanding and carrying out organizational policies
T&D helps in developing leadership, motivation, loyalty, better attitude, and other aspect that
workers and managers usually display.

TRAINING PROCESS FOR SALES EXECUTIVES.-

INDUCTION: - aims to provide an understanding of the industrys policies and products.


PRODUCT PROGRAMS:-imparts complete knowledge of company and its competitors.
SELLING SKILLS/CONSULTIVE SELLING PROCESS: - enables understand customers needs, sales
processes etc. and enables apply learning in actual selling)
CUSTOMER CARE: - appositive attitude and the ability to move is a pre requisite for excellent
performance in any world. Program aims at helping one to build a positive attitude and
interpersonal skills and to enable better customer handling.
ADVISOR FOR LIFE PROGRAM:-in this changed competitive environment, role of dealer sales
executive is seen more than a person who is selling cars to the customers. He is expected to be
the customers for life .he has to be single window interface with his customers on all matters
related to cars, that is, finance , insurance , Extended warranty , service etc.
The training program on Delivery Process has been developed as delivery now has the maximum
the right age in the new factor structure. Delivery is not the end of a sale but a beginning of a
relationship.

TRAINING PROCESS FOR SALES MANAGERS / GENERAL MANAGERS/ BRANCH HEADS

1. Dealership Management Program: - To manage entire Dealership Operations. Financial


Management, staff management, motivation, tie management planning are covered.
2. Sales Managers/Team Leaders Program: The Training covers issues like Sales management
(target setting and achievement, enquiry management, resource and time management etc.),
Supervisory skills, Practical Coaching skills, knowledge of cars Finance Insurance Extended
warranty etc.
3. Branch managers Program: many of the dealers have multiple outlets. While the owners sit
any one outlet and control the others from there, different branch heads that managers the day
to day operations of the outlet manages the other outlets

CONCLUSION
Automobile market today is very dynamic & competitive with a range of players and products.
There are many reasons for the impressive growth of the Pakistani passenger car Industry. Some
of these are easy availability of vehicle finance, attractive rate of interest and convenient
installments. In todays aggressive competition it is very difficult to survive. Stiff competition has
forced manufacturers to be innovative and responsive to customer demands and needs. SBT
JAPAN Limited is a leading company in Pakistan Automobile sector which occupies prominent
place due to its innovative strategic marketing, promotional, Brand positioning, advertising.
Strategies. In todays scenario the success of company lies in structuring and restructuring the
marketing strategies and continuous innovation of product and services. The SBT has a huge
Market and has left no stone unturned to satisfy the customers. It has models in every segment
of the automobile market. In spite of rising input costs, the company tries their best to keep
prices down. Their running costs and resale values are unbeatable too. Competitive strategy of
this company facilitated healthy profit and customer satisfaction and its recognition as a
company which stands for environmental concerns.

Bibliography
http://www.google.com
http://en.wikipedia.org
News Papers,
Business Review magazines