Académique Documents
Professionnel Documents
Culture Documents
Qutab Sikander
Executive Summary
Other than this, the company has developed a very good repute in the World
of credit due to which most of the Financial Institutions like National Bank,
Faysal Bank, Punjab Mudaraba have provided especial credit limits to the
Company in order to support its operational activities. While working with PAK
ELEKTRON LTD, I got very broader visions about company financial and
marketing activities more than those that I had learned during my B.Com
(Honors) program.
We are now living in that modern era of life which is full of challenges and
hurdles. So to survive in such sort of age a high degree of dedication,
confidence, & competency is required specially for those younger ones who
are going to be the future of the country specially students. But our education
system is not suitable for students as according to the coming period’s
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requirements needed to be successful in life in this severe time. It is just only
limited to knowledge, prepares personnel for clerical work not for
entrepreneurship.
The practical life involves those methodologies and task which the students
never experienced in their daily routine of school, college, or university life.
Only the bookish knowledge is not sufficient to be well at home in all respects
in a student life as it demands strong distinction with respect to knowledge as
well as working capabilities. Only positive attitude and passion to perform any
task makes a man perfect in all respects/
Our educational institutes are only here to provide overviews about any field
or area of interest to students not the practical exposure. The market now a
time is so crucial that it is so difficult to have a place and retain here for a
general fellow. Besides there are some other factors that are responsible for
such critical position of the country like inflation, unemployment, lack of
resources etc. simply each and every part & portion of life of students is full of
problems regarding future. So only those younger ones may be able to
breathe here who may have potentials and commands over various
fundamental tactics of practices and pre-requisites and have enough strength
to face and accept the assigned task in their practical life.
Introduction
PAK ELEKTRON LIMITED was set up in 1956 as a joint venture with one of
the largest and renowned manufacturers of electrical equipment messrs. AEG
After conclusion of agreement with AEG, total share holding of AEG was
purchased by the then sponsors-Malik Brothers. The production continued
with AEG designs with much greater emphasis on the quality and reliability of
the products which earned unique distinction of supplying electrical equipment
to projects of paramount national importance like Mangla Dam and Tarbela
Dam Projects. PEL equipment was approved by consultants of international
repute including price cardew & Rider (England), Binnie & Partners (England),
Harza Engineering International (USA) and Miner & Miner International Inc.
(USA).
The majority shares were acquired from Malik Brothers by Saigol Group on 11
October 1978 and immediately on takeover the new management chalked out
both long term and short term plans to put the company back on the path of
progress. As a part of first phase of its BMR Programmer the new
management injected the additional working capital of Rupees 8.98 million
and Bridge loan of Rupees 7.50 million (against the public issue of its shares )
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was provided by the ICP-led consortium. As a part of long term plans, the
manufacturing of window type Air Conditioners was taken up in 1981 and was
immediately established for quality.
The company launched the second phase of its BMR and expansion of
the existing product line in the 1987 and imported machinery for the
manufacture of Refrigerators and Deep-freezers for a total value of Rupees
22.11 million. For the project National Bank of Pakistan – the leading bank of
the company provided the financing. Like Air-conditioners these products
have also been well received by the local market which speaks highly of the
confidence, the consumer has developed in the quality products
manufactured by the company.
During the year 1990 the company has signed an agreement with
Messrs HITACHI of Japan for the manufacture of Vacuum Circuit Breakers.
MISSION STATEMENT
To provide quality products & services to the complete satisfaction of
our customers and maximize returns for all stakeholders through
optimal use of resources.
To focus on personal development of our employees to meet future
challenges.
To promote good governance, corporate values and a safe working
environment with a strong sense of social responsibility.
HR Vision
To achieve excellence through innovative HR practices and continuously
exceeding our PEOPLE Expectations.
HR Mission
PEL’s HR Mission is two-fold:
• Working conditions
• Leave policy
• Health policy
• Transition policy
• Relocation policy
• Insurance policy
• Vehicle policy
• Hotel/travel policy
• Attendance policy
HR Values
Respect, Team spirit, Commitment & Customer Satisfaction.
ORGANIZATIONAL OBJECTIVES
By incorporating the essence of the mission statement in the company
branding line, company intends to create the desired image and achieve the
following objectives.
A high visibility level.
Heightened awareness amongst the target market.
To favorably mobilize the target market towards the organization and its
products.
Minimum cost for maximum projection.
Enhance the level of relationship with customers (corporate / individual)
and employees.
Upgrade teaching abilities, skills and knowledge of teaching staff.
Upgrade teaching equipment to the required standards.
MANAGEMENT PROFILE
A committed team of highly qualified, experienced professionals, financially
sound and reputed sponsors manages the company. Through sheer
dedication, diligence and the Almighty’s Beneficence the management team
at Pak Elektron Limited have earned reputation for excellence in
manufacturing of electrical as well as home appliance and their marketing.
BOARD OF DIRECTORS
NAME DESIGNATIONS
Mr. Naseem Saigol Chairman / chief Executive
Mr. Azam Saigol DIRECTOR
Mr. Murad Saigol DIRECTOR
Mr. Zeid Yousaf Saigal DIRECTOR
Mr. Haroon Ahmad Khan Managing DIRECTOR
Mr. Muhammad Rafi Khan DIRECTOR
Mst. Neelofer Hameed NBP Nominee U/S 182 of The
Ordinance
Mr. Rizwan Hameed NBP Nominee U/S 182 of The
Ordinance
Mr. Tajammal H. Bokhree NBP Nominee U/S 182 of The
Ordinance
Mr. Wajahat A. Baqai NBP Nominee U/S 182 of The
Ordinance
COMPANY SECRETRY
Sheikh Muhammad Shakeel, FCA
AUDITORS
M/S Yousuf Adil Saleem & Company
Charted Accountants
(A member firm of Deloitte Touche Tohmatsu)
Advocates
M/S Hassan & Hassan
Pak Electron
Limited
PEL is one of the major electrical equipment suppliers to major power sources
like Water and power Development authority (WAPDA) and Karachi Electrical
Supply Corporation (KESC).
Over the years, PEL electrical equipment has been used in numerous power
projects of national importance within Pakistan. PEL has the privilege of
getting its equipment approved and certified by well-reputed international
consultants such as:
In spite of stiff competition from emerging local and multinational brands, PEL
Group’s appliance and electrical equipments have remained in the spotlight
due to constant innovation. Strategic Partnership with multinational of repute
have enabled the PEL Group to incorporate new technologies into existing
TRANSFORMERS
PEL has vast experience in design and manufacturing of standard and special
purpose transformers. New technical designs for improved efficiency and
quality against special orders of non-standard transformers are continuously
being explored. These transformers are available for various applications.
I. Distribution Transformers
II. Auto Transformers
III. Furnace Transformers
IV. Welding Transformers
PEL transformers have been successfully type tested for impulse voltage and
short circuit tests by KEMA Laboratories of Holland. Customized
transformers, in accordance with domestic and international client
specifications have also been manufactured for use within and outside
Pakistan. Transformers are normally supplied in a period of 3 – 4 months
after the receipt of orders from respective distribution companies of WAPDA
and varied supply time for private customers. The company provides one year
after sales service warranty to WAPDA, DESC and private sector customers.
Main competitors are Siemens, Transfopower, Elmetec and Climax while PEL
having a market share of 38%.
PEL offers transformer tanks with corrugated walls, detachable radiators and
tubular arrangement. The corrugated tanks have a better cooling efficiency,
since the fins are expandable. Tanks are hermetically sealed where possible.
In order to meet sophisticated requirement of customers PEL has also started
manufacturing transformers with foil winding. Foil winding efficiently uses
space which results in size reduction. It has better heat dissipation and also
increases potential to withstand short circuit current.
ENERGY METERS
PEL manufactures these types of energy meters; single Phase and Poly
Phase. The electro-mechanical energy meters are manufactured under
license from ABB of USA. The quality of PEL meters has been certified by
KEMA Laboratories of Holland. PEL meters are superior to others due to their
ability to lower revenue losses through accurate & precise operation and
reduction of maintenance expenses.
Energy meter orders from WAPDA are received annually and their supply
period is 9-10 months. Energy meter to KESC are supplied in a period of 3-4
months. The company provides one year after sales service warranty to
WAPDA, KESC and other customers. In the supply of energy Meters PEL
share accounts for 35% of the total supplies while the rest is shared by Syed
Bhais, Escort and Telephone Industries, A brief description of Energy Meter
is as under.
Single Phase Static Energy Meters
Single phase static energy meter used for measurement of active kwh energy
for Domestic & commercial consumers. The meter complies with the IEC
62052-11. IEC 62053-21. some of the main features include:
Capable of recording on the basis of current with assumed voltage and
power factor in the absence of voltage on its terminals.
Display of energy kwh during power outages.
SWITHCHGRARS
Switchgears are one of the highly technical and specialized power products of
PEL. They are produced for indoor and outdoor installations complying with
international installation standards. A major customer fore this product is
WAPDA. The company provides one year after sales service warranty to
WAPDA, DESC and other customers. In Switchgear, PEL enjoys market
share 33% while competitors are Alstom, Siemens and Fico.
MV & LV switchgear are produced for indoor and outdoor installations. The
switchgear and their key components comply with the requirement of all
significant international standards and regulations i.e. IEC, BSS or VDE. SGS
UK has certified PEL Design & Manufacturing of Switchgear for ISO
9001:2000. PEL’s switchboards are steel sheet fabricated, totally enclosed,
floor mounting type and vermin and dust proof. These are supplied with
factory fitted components, copper bus bars, internal wiring and terminal blocks
etc.
Consultancy / Expertise
Fault investigation
Trouble shooting
Condition assessment
Capacity enhancement
Customer Training
Product / operation training
Product maintenance training
Risk assessment training
APPLIANCES DIVISION
This Division of PEL consists of appliances manufacturing. The Appliances
Division of PEL is the pioneer manufacturer of electrical goods in Pakistan.
The Division’s product portfolio comprises of air-conditioners, refrigerators,
televisions, microwave ovens, and split air-conditions. PEL is one of the
three leading players in the home appliances market. The company is
engaged in the manufacturing an/ or marketing of the following home
appliances.
PEL Refrigerators
The manufacturing of refrigerators started in 1986-87 in technical
collaboration with M/s IAR-SILTAL of Italy. Like the air conditioner, PEL
refrigerators are also in great demand. Today, PEL Crystal has 30%
market share. Its cooling performance is tested and approved by Danfoss,
Germany and its manufacturing facility is ISO 9002 certified by SGS
Switzerland.
Associated Companies
The following are the associated companies of the Company as section
2(2) of the Companies Ordinance 1984.
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Kohinoor Industries Limited.
Kohinoor Power Company Limited.
Kohinoor Energy Limited.
Azam Textile Mills Limited.
Saritow Pakistan Limited.
Saigol Brothers Limited.
Guarantee Life Employment Limited.
Progressive industries (Lahore) (Private) Limited.
Art Center (private) Limited.
Saigol (private) Limited.
Conforce (private) Limited.
Kohinoor Autos (private) Limited.
Kohinoor Tractors (Private)
Innovative Technologies (Private) Limited.
Raytex (Private) Limited.
Standard Grinding Wheel Industries Limited.
Fico
Pempam
Tariq Electric
Syed Bhais
Microtech
Escort
SB Electronic
Creative Electric
Chairman
Managing
Director
GM GM Marketing GM
GM Finance
Manufacturing (Power Manufacturing
(Power Division) Division) (Appliances
Division)
Sr. Manager GM
Sr. Manager
Sr. Manager Marketing Marketing
(Foreign
Finance (Power (Appliances
Procurement)
Division) Division)
Manager
Commercial Sr. Manager Sr. Manager
Marketing. QC. Sr. manager
(Appliances (Appliances HR & A
Division) & Power)
Managing
Director
My Learning
Inventory Section
The inventory section of PEL handles the activities of stock dispatch as well
as the stock taking procedure. Concerned departments raise “indents” or
requests to the local procurement section as per their requirements. PEL’s
procurement department uses four types of purchases as:
Credit Purchases:
It includes purchases by procurement department from suppliers’ on
credit. A “purchase Order” (PO) is made that bears the quantity computer
code rate and value drawing and all the specifications of required items.(PO)
Cash Purchase:
In this type of purchase materials are supplied to the local vendor for
Die casting, Molding, Chroming=, Machine printing, Powder coating etc. in
other words we may say that materials are given and some work is performed
on those materials and for these services, the local vendor is paid. Vendor
claims only processing charges.
Further Procedure:
When items are purchased, through any type of purchasing method
mentioned above, procurement section makes “Purchase challan” against the
cash memo or delivery challan provided by the suppliers. The supplies are
then sent to the stores.. in the stores, the keeper checks the items according
to the delivery challan. If he finds any discrepancy, he mention it on the
challan,. After counting, weighing, measuring the goods as per their nature,
he makes a goods receipt note (GRN) and hands the goods over to the
Quality Control department. Quality Control examines the goods to see
whether they match the required standards or not. Defective or sub-standard
items are returned. Remarks or reasons for rejection are mentioned on the
(GRN) by the Quality Control department. After checking for quality and
subsequent approval Quality Control sends the item back to the receiving
store, store-keeper assigns the goods a serial number and date on their
(GRN). Now the receiving store process is OK. After this the store-keeper
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sends the items along with their (GRN) to the relevant store, relevant store-
keeper further re-checks the material according to the (GRN) and makes entry
on his Bin Card. Material is now officially stored. The store-keeper now sends
the (GRN) to the accounts department where it is posted in the Stock Ledger
after its valuation.
(through intends)
Procurements Section (PA or AD)
(makes delivery)
Gate Entrance (through physical check & IGP is issued)
Store
Purpose of Inspection:
The purpose of these procedures is to establish uniformity and
consistency in the quality assurance of material and components
received from supplier by incoming quality control.
Issue Procedure:
Production department when in need of material sends a “Production Request
Form” to the stores. The form consists of items code, quantity, fabrication
number, cost center number etc. the department head must approve of this
request. It is then sent to the relevant store for issuance, if available stock is
issued after completion of some formalities such as store allocation etc. if
there is any difference in requested quantity and that what is available the
store-keeper change that quantity and posts it on the Bin Card. After posting
into Bin Card, store-keeper sends the request to Accounts department.
TASK:
In this section I completely learned the overall activities of receipt and
issue procedures of materials through built in software there.
Provision account is ended and excise duty and sales tax are charged to the
party
Party account
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Bank account
In this entry the party is clearing all dues by payment through bank.
Diagrammatical View
Overall procedure of APS may be represented as follows:
Sales invoices or Bills (From creditors)
(Through invoices)
Voucher preparation
(Makes delivery)
Supplier’s Request (For payment through buying department)
Income Tax
Income tax is also dealt in the Account department the tax is called
withholding tax also. It is at the rate of 3.5% of supplier, 6% on services, 5%
on rent paid and 2% on freight paid for transportations.
Income tax payments are made on daily basis to the State Bank Of Pakistan
by PEL.
Payments of tax is made through a withholding tax challan, which consist of
purchaser (i.e. PEL in this case) details on top name, NTN, registration
number etc, next comes the list of suppliers from whom sale tax is deductible
on the current date. The cost of purchases made from them and the taxes cut
are shown.
The challan is submitted to the bank and a temporary receipt/token is given.
After 3 days the challan is returned with a stamp that is proof of payment.
In the same way taxes on the salary of employees is deducted, retained and
then sent to the State Bank of Pakistan. Through payment of tax, refund may
be claimed for taxes on utility bills etc, the advantage to the supplier is that
now he may take refund of the withholding tax challan form PEL and send it to
the Federal Board of Revenue (FBR). This is proof that taxes on purchase
from them have been paid. The FBR then asks PEL for approval. The supplier
Task:
In this section I learned the internal operations of payment system by
personally practicing through preparation of the vouchers, posting of GRN,
verifying amounts and quantities of stock as according to vouchers, BRN, and
transactional reports (records) in order to avoid the dual discrepancies, mostly
APS involves the usage of software so too observed the coding system.
Besides I too learned to make details for audit work by having view of
previous vouchers of CP, JV,& BP respectively etc.
Costing
PEL uses job-order costing method. The two main product divisions of PEL
are appliances division and power division. Both divisions use similar costing
methods, save that in appliances division specific job-orders are not made
because the party is not defined. Appliances sales are usually to individual
consumers as per their requirement. A Cost Control System (CSS) is used to
control the costs of the products manufactured, production planning is both
month-wise and annual. After production plans are made, orders are made for
request of raw material. Orders are made on “production Order Forms” which
is made in the production department. Each order has a Fabrication Number.
This number has a special significance. The 1st figure is the division code, the
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2nd figure is the product code, the 3rd figure is the nature of the job and the rest
is just the serial number.
PEL’s specially designed software is used to keep track of the number of
orders. Quantities, fabrication number, model number and date are fed into
the system to get the rest of the information required. At any point of time, this
information may be fed in for a particular order to see up to what extent it has
been fulfilled, how much of the order is yet to be fulfilled, whether it is in parts
or the whole order has been demanded at once, so on and so forth. Another
important document formed is the “Bill of Quantity” (BOQ). This bill shows the
quantity of material that shall be used for the order in question. Issuance of
material may be of two types also. Incase of normal or routine issue the term
“issue Normal” (IN) is used and incases of any excess issuance an “excess
Voucher “ (EX) is made. Apart from the main materials, extra materials may
be required for a particular order. This may be the case when wastage takes
place e.g. when a required shape of metal is cut from the sheet provided, the
metal on the sides is extra and is scrapped. In some orders “auxiliary
materials are used which are not required in all orders. These are accounted
for also.
Further the costing of the product takes place. For this the cost of the three
basic parts required to make a product are calculated namely;
• Materials
• Labor
• Factory overhead
If the materials value is not present actually, it is taken from the “Bin Card”
which is a document made especially for each item. It records quantity issued,
quantity received and balances. Standard quantity is used in calculations. For
the cost of labor, Inspection Report is used. The value from inspection report
is multiplied by labor hours and labor rate. Factory overhead is taken as a
Task:
In costing section I experienced the costing methods, techniques, & other
procedures followed by PEL. Usually there is built-in software being used by
costing section named as FOX PRO but now it is being changed to ERP
(Enterprise Resource Planning) for budgeting and for other costing section
requirements. By observing sales advice, BOQ , Inspection report, system
flows I became able to understand each and every step of costing section
working. Besides I performed several calculations based on rates, quantities ,
& specifications in order to be assisted that in preceding audit job.
Task:
In this section I observed the routine system of Letter of Credit of PEL
whenever it imports any material from foreign suppliers. I was also sent to
commercial department to know more about L/C through that source I got
enough valuable information fruitful for my further concerns.
Diagrammatical view
Overall procedure of Imports (L/C) section may be represented as follows:
Production department (Requirements)
Payroll
There are two sub sections of payroll section;
• Salary
• Benefits and other expenses
So payroll section is managed by two persons. Whenever a new person is
recruited at
PEL the Human Resource (HR) department prepares an appointment letter. A
photocopy of this letter as intimation is sent to the Account department having
details about basic salary and allowances etc. this person is then formally
added to the payroll section of PEL. The salary period for the staff is from 25 th
of the last month to the 25th of the coming month. For workers the salary
billing is from 1st to 30th of the same month.
At the end of month, all the appointment letters of that month along with the
salary details is sent to the (HR) department to check for any discrepancies.
The marking of attendance for both the graded staff and the non-grade staff
i.e. workers and peons etc is in the same manner. When the employee walks
in, the time of his arrival is noted down at the gate. Graded staff has two
attendances, one being at the gate and one on an attendance register once
they reach their requisite department. Non-grade staff has one attendance.
Payroll is managed through the specially designed software of PEL.
Full profile of the employee is maintained in the database of the software
namely: name, father’s name, date of birth, area of work etc. This profile
information is forwarded by Human Resource Department who collect it in the
first place through forms provided to the new entrant.
Task:
In this section I experienced all the formalities like voucher preparation,
expenses entries in ECM as well understood clearly the coding system of
expenses.
Accounts Department
(For information)
IR &A
(Recalled information)
Accounts section
Salary Payments
Bill (From client write any expense or facility like Advance, medical,
or traveling etc.)
Verification of Bill
In ECM
Voucher Preparation
Checking
(Final signature)
Approval of expense
• Address
• Telephone #
• Fax #
• Contact Person
• E-mail Address
• NTN #
• Sales Tax
• Payment Term
Completion Process:
After verification new account is open according to Division
(Appliances, Power, and Common).
ACCOUNTS PAYABLE SYSTEM
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Following reports/ out put are available on APS system:
I. Purchase Voucher Report with GRN Support.
II. Debit Note Report
III. Bank Payment Voucher along with invoice detail
IV. Due Date Report (Due Payment)
V. Payment against Cash Purchase
VI. Party ledger
VII. Creditor Aging
VIII. Creditor Reports – Product wise
IX. Month wise Creditor Reports
X. Suppliers Payment Aging Report
XI. Suppliers Income Tax Challan Printing
XII. Supplier Income Tax Return on Monthly , quarterly and annual basis.
XIII. Supplier income tax Certificate
XIV. AP Voucher for Journal Ledger Posting
XV. Missing GRN Report
XVI. Party cheque Printing
XVII. Detail of Bills which is sent to vendor with cheque
XVIII. List of purchase Vouchers / Bank Payment Vouchers
XIX. Invoice Register
Purchase voucher (Through any section like Inventory, APS, or other etc.)
Explanation:
In this section of Accounts section depreciation is evaluated of fixed assets
only. Any financial transaction done through any section like APS, inventory or
any other section by means of voucher is brought down here. Form that
voucher fixed asses treatment is brought under consideration by dividing into
its sub sections where from depreciation is charged according to diminishing
balance method & as according to software. The whole process includes the
TASK:
I thoroughly observed the overall system of depreciation through annual
report and too understood the basic concepts of depreciation methods as well
as prepared details on assets like vehicles.
Reporting
TASK:
In reporting section I knew how to prepare a report and how to precede it with
higher authorities. Besides I experienced to observe the verification of
monetary transactions done in the multiple sections of the accounts
department.
• Bank of Khyber
• Bank of Punjab
• Deutsche Bank
• My Bank Limited
• SILK Bank
Ratios Formulae
Vertical Analysis
Final Analysis
Note:
All the amounts are drawn from the financial statement of PAK ELEKTRON LIMITED
as according to annual report of 2009 and all the calculations are performed
manually.
STRENGTHS
PEL has the following strengths and is in more competitive position in these
areas than its competitors. Following are the main strong points of PEL:
• Strong brand image
• Strong Management
• Distribution of Authority
• System variations
Lack of Advertisement
It is a second major weakness of PEL that it never makes advertising on TV.
That creates hurdle in selling the products and customers cannot know the
changes, which are made in products by the company time to time. Company
is not in a position that it made advertising of all their products on a wide
range because of its high cash requirement towards the production side. Due
to this problem company always make efforts to develop strong relationships
with dealers.
System Variations
It is also the main weakness of PEL that there are rapidly a change in polices
of selling the products. That’s creates problems for the selling team how to
sell the products to the dealers because the top management requires the
urgent amount of money. So selling team sells the products sometimes on
hard cash that will reduce the prices of products that gives the benefits to the
dealers and creates problems for the management.
Lack of Product Range
PEL has introduced more products of consumer items but there are more
needs to develop new consumer items like PEL washing Machines, Vacuum
cleaner and other items. Due to lack of product Range, Company cannot earn
more profit because consumers have high demand of these products and they
say that if company is investing in these products then we can keep all PEL
items and we never need to keep other’s company products.
Less Utilization of Capacity
Due to lack of finance a company cannot utilize all its resources on its full
capacity. It increases the cost of products per unit that decreases the profit
OPPORTUNITIES
For the PEL there are more opportunities for expansion the business. If PEL
realize that opportunities then it will be more fruitful and profitable for the
company. Even if company does not take advantage of these opportunities
then it will loose its competitive position and high profit. Its competitors will
give PEL tough time to pursuing the opportunities that are adopted by them.
Following are the opportunities for the PEL.
• Exploration of market in Pakistan
• Export opportunity
Export Opportunity
PEL Company has also the opportunity to export their products in other
international countries like UAE, SAUDI ARABIA, and other Arabic and
African countries. It will not only reduce the dependence on one market but
also increase the market shares and profits. It will also help the company to
spread the fixed cost on all of its production that will reduce the total cost and
company will enjoy the high profit.
THREATS
PEL Company in such a competitive era has many threats as well. These
threats are for the present situations and future. Company should make its
policies and strategies according to these threats. So following are the main
threats for the PEL:
• Strong competition
• Price war
• Instability of government
• Tax department
• Investors
Strong Competition
Price war
As there is stiff competition in the home appliance market that will cause the
price war, So every company reduces the prices of its products to increase
the sales. It will not only reduce the profit margin of the company but also
reduce the quality of products. So price war is the main threats for all the
companies, which are operating in these products.
Instability of Government
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The rapid changes in governments will become threats for the companies
because every government adopts its own policies for the industries. So it
increases the uncertainty for the investors who want to invest heavy amount
in their new projects. That’s become the major threat for the companies and
decreases the profitability. Due to fear of politically instability companies will
also not invest the heavy amounts.
World trade Organization
World trade organization will give the permission in 2005 to each company of
home appliance to export their products after paying fewer duties or duty free
products. That will increase the pressures for the indigenous companies to
reduce the prices and increase the quality. It will increase the competition
among the foreign companies and indigenous companies. But our companies
also run under uncertainty conditions. This will decrease the morale of
indigenous companies.
Investor’s:
There are few people who have big investments and they are importing the
Chinese product by their own Brand name. This is a very big threat for the
company and company is trying to create some attraction for the investors to
demotivate the investors.
RECOMMENDATIONS
• Co-ordination should be developed between departments to
departments. This can be done through setting goals and objectives of the
whole company not only for their different departments.
• 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 moneys worth.
• The company must give more incentives to the dealers so that they
remain loyal to the company and promote the products.
• PEL should define the company’s mission and vision statement that can
be more helpful for them in future. Every organization however it is small or
large has clear direction where they want to go. Without direction or
knowing the purpose of their existence how an organization can make
progress.
• The work given to the internees should not be general, rather it should
be according to their specialized field (i.e marketing, finance, HR) so after
the completion of their internship program they have practical knowledge
of that specific field.
• The product line of PEL is not good as compared to others like Haier,
Waves, Super Asia, so it’s good for the company for more success if they
work on it.
• PEL should also take care of the Economical, 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.
There are certain vague points which should be the prime objective of this firm
to improve and come over them and the points are enumerated as follows
It is advised that PEL should work on the brand image. Although PEL has a
strong brand name, but it has to create much more stronger one, mainly
through advertising, to compete with Dawlance, Waves, 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 moneys worth.
To gain more competitive advantage over their competitors, PEL has to work
on their distribution network.
The company should change the advertising theme and slogan to attract and
for the attention of customers. They should show some creativity in all
promotional activities. So PEL should come with some catchy and appealing
Slogan.
PEL should redefine the mission and vision statement because they fail to
comply and align the company objectives.
The product line of PEL is not good as compared to others like Haier, Waves,
Super Asia, so it’s good for the company for more success if they work on it.
INTERNSHIP EVALUATION
Finance Department
Accounts Department
One most important thing that I experienced in my training session was the training
ethics. Some people resist against some little work which is not according to their
status & qualification but still that little work may provide a lot.
Thank You