Pacakges Project PDF

Building Blocks for a
Sustainable Future
PAPER AND BOARD
SECTOR
RESEARCH PROJECT
(Session 2013-17)
SUBMITTED TO:
MR. RASHID SALEEM
SHERAZ ARIF (20%) Introduction
External Environment
13-BBA-H-FM-36
IE Matric
FARHAN NAEEM (20%)
13-BBA-H-FM-29
MOHSAN MEHDI (20%) Value Chain Analysis
13-BBA-H-FM-47 HR Functions
Marketing Functions
ARSLAN RASHEED (20%)
IFE Matrix
13-BBA-H-FM-23
JUNAID SAFDAR (20%) Financial Ratios
13-BBA-H-FM-44
University of Education (LMC) Lahore

PAPER AND BOARD
SECTOR
“ Innovation Distinguishes Between

a Leader and a Follower “
STEVE JOBS
DEDICATION
We Dedicate Our Project Work to Our Family and Acquaintances.
A Special Feeling of Gratitude to Our Loving Parents, Whose Words of Encouragement and
Push for Tenacity Ring in Our Ears.
We Also Dedicate This Dissertation to Our Kashmiri Brothers, Sisters and Especially Innocent
Children Who Are Suffering Miserable Time and Brutality of The Indian Army Extremely.
Especially, We Would Like to Share Our Never-Ending Gratitude to Our Revered SIR
RASHID SALEEM For Giving Us the Opportunity to Use and Execute Our Erudition in Order
to Innovate a Business Plan.
ACKNOWLEDGEMENT
“All Praises for Almighty Allah, Who Guides Us in Darkness and Helps Us in Difficulties
and Due Respect for Holy Prophet (Peace Be Upon Him) Who Enables Us to Recognize
Our Creator.”

PAPER AND BOARD
SECTOR
First, We Would Like to Thank Almighty Allah Who Provided Us Confidence,
Guidance & Strength to Complete This Challenging Project. The Journey Has Not
Finished Yet and We Pray to Allah Almighty to Show Us the Right Path & Help Us More
in Future as We Are Nothing Without His Blessings.
We Would Like to Express Our Gratitude towards Our Parents Who Support and
Encourage Us throughout Our Life.
We would prefer to convey our deep sense of veneration to our revered Sir RASHID
SALEEM. We would like to impart never ending gratitude towards all the members of this
group. Who have had helped with each other for the accomplishment of this report, everyone
devoted and participated to make this project completed. At last but not the least, we would
like to express our gratitude towards our eminent parents who support and encourage us
throughout our lives.
This particular Project has aided us in many ways. It was a challenging but informative
experience of ours as well as an opportunity to polish and upgrade our hidden skills. It added
a lot to our knowledge.
TABLE OF CONTENTS
PAPER AND PAPERBOARD INDUSTRY ........................................................................
1
PACKAGES LIMITED ........................................................................................................
2
Rationale of selecting . ............................. 4
EXTERNAL ENVIRONMENT ...........................................................................................
5
Natural Environment . .............................. 5
Minimizing Paper Pollution .........................................................................................
6

PAPER AND BOARD
SECTOR
Societal Environment . .............................. 6
GPEST Analysis ............................................................................................................. 7
Global challenges .........................................................................................................
7
Political Factors ........................................................................................................... 8
Economic Environment Factors .................................................................................. 9
Social Factors .............................................................................................................
11
Technological forces ..................................................................................................
12
Task Environment . ............................. 14
Porter’s 5 Forces .......................................................................................................... 15
1. Threat of New Entrants (Weak Force) .............................................................
15
2. Bargaining Power of Suppliers (Moderate Force) ...........................................
15
3. Bargaining Power of Customers/Buyers (Moderate Force) ............................ 16
4. Threat of Substitutes (Weak Force) .................................................................
16
5. Competitive Rivalry or Competition with Packages (Weak Force) ................ 17
Opportunities ............................................................................................................. 18
Threats ....................................................................................................................... 18
Issues Priority Matrix .................................................................................................. 19
Issues ..........................................................................................................................
19
Priority Matrix ........................................................................................................... 19
Opportunities ............................................................................................................. 20
Threats ....................................................................................................................... 20
EFE Matrix . .............................
21
INTERNAL ENVIRONMENT ..........................................................................................

22

PAPER AND BOARD
SECTOR
Value Chain Analysis . ............................
22
Primary Activities or Core Processes ........................................................................ 22
Inbound Logistics ...................................................................................................... 22
NPD/ Operations ........................................................................................................
24
Outbound Logistics ....................................................................................................
24
Marketing and Sales .................................................................................................. 25
Services ......................................................................................................................
26
Secondary Activities or Support Processes ............................................................... 28
Research and Development (R&D) ........................................................................... 28
IT & other Technological Development ....................................................................
28
Human Resource (HR) Management .........................................................................
29
Procurement ...............................................................................................................
30
ORGANIZATION STRUCTURE ..................................................................................... 31
MARKETING FUNCTIONS AND STRATEGIES .........................................................
33
HR FUNCTIONS .................................................................................................................
36
FINANCIAL RATIOS ........................................................................................................
36 Liquidity Measurement Ratios .
...................... 59
Profitability Indicator Ratios . .........................
41
Debt Ratios . ......................................................
46
Operating Performance Ratios . ......................
59

PAPER AND BOARD
SECTOR
Cash Flow Indicator Ratios . ...........................
59
Cash Flow Coverage Ratios . ...........................
59
Investment Valuation . .....................................
59
STRENGTHS AND WEAKNESSES .................................................................................
59
IFE MATRIX .......................................................................................................................
61
IE MATRIX ......................................................................................................................... 61

PAPER AND BOARD
SECTOR
PAPER AND PAPERBOARD INDUSTRY

Paper industry of Pakistan is an important industry and serves primarily the domestic market.
This sector involves process innovation and due to this companies need to improve their
technologies in manufacturing process as well as product innovation. In Pakistan, companies
like Packages and Century Paper and Board Mills are continuously improving their products
by spending huge amount in R&D. If we talk about immaterial, organizational or soft
innovation in paper industry of Pakistan, some of the big companies introduced new
production concepts and supply chain management as well as they are working on value
added services to support products. But still lots of continuous work and consistent policies
are required by the government to compete in the world market.
Globally, paper industry has realized a linkage between production of paper and the farming
community thereby infusing huge capital in agricultural economy. The USA, Latin America,
Scandinavian countries, Australia, Japan and neighboring Asian countries viz. China,
Indonesia etc. all have been quick to create conducive land use/forestry policies to encourage
large-scale production plantations and attract mega investments in pulp and paper/paperboard
manufacturing and in the process creating millions of jobs.
PACKAGES LIMITED
University of Education (LMC) Lahore 1|Page

PAPER AND BOARD
SECTOR
Established in 1956 as a joint venture between the Ali Group of Pakistan and Akerlund and
Rausing of Sweden, Packages Limited provides premium packaging solutions for exceptional
value to individuals and businesses in the most efficient, profitable and sustainable way. We
offer a complete range of packaging solutions including offset printed cartons and flexible
packaging materials to individuals and businesses world-wide. Our clientele includes
illustrious names such as Unilever and Pakistan Tobacco Company, who have been our
customers for over 50 years. We employ over 1500 people and had sales of over US $ 141
million in 2013.
Listed on all three stock exchanges in Pakistan, Packages Limited has maintained a long-time
credit rating of AA. Our joint ventures and business alliances with some of the world's biggest
names reflect our forward-looking strategy of continuously improving customer value
through improvements in productivity.
Packages has always been at the forefront of new developments in packaging research and
has pioneered several innovations, including the use of wheat straw as a raw material for
paper and board manufacture.
Packages is an economically significant company.
In 2012, to enable continuous growth and technical development in the Paper & Paperboard
segment, Packages signed a 50/50 Joint Venture agreement with StoraEnso OYJ Group of

PAPER AND BOARD
SECTOR
Finland in its 100% wholly owned subsidiary, Bulleh Shah Packaging (Private) Limited. The
Joint Venture included Paper & Paperboard and Corrugated business operations at Kasurand
Karachi and involved initial equity participation by Stora Enso OYJ Group of 35% by way of
subscription of right shares with a commitment to increase the shareholding to 50% at a later
stage.
In the same year, Packages also invested in a New Rotogravure Machine for its Flexible
Packaging Business with a total estimated project cost of PKR 326 million as part of the
Company's efforts to remain abreast of improved technological developments in the
Packaging business.
The Joint Venture Agreement with Stora Enso OYJ Group, signed in 2012, was implemented
in 2013 and Packages completed the transfer of assets and related obligations of Paper &
Paperboard and Corrugated business operations to Bulleh Shah Packaging (Private) Limited
along with cash equity injection. Packages now holds 65% equity in BullehShah Packaging
(Private) Limited. The joint venture partner, StoraEnso OYJ Group, is actively involved in
providing technical expertise to further enhance the Paper &Paperboard and Corrugated
business operations.
Rationale of selecting .
We have opted Packages limited company in order to work on this research project. Because
we have made couple of projects and accomplished various assigned tasks on renowned
industries, like, Beverage (Pepsi) and Automobile Industry (Atlas Honda Pakistan limited)
subsequently. For now, we thought to change the industry, after developing, evaluating and
selecting the four organizations as our alternatives for final decision. We agreed to choose
this Company due to our interest in manufacturing business. However, we got some
connections because we had worked with Packages as their clients and we have some

PAPER AND BOARD
SECTOR
references in this company too. Another reason to select this organization is that this is one
of the famous company in Asia with respect to manufacturing papers. For example, bottle's
stickers and pouches of other products like Nestle's "Lactogen". To summarize, we found it
appealing to us and we believed this project and working on this organization will add a lot
to our knowledge.
EXTERNAL ENVIRONMENT
Natural Environment .
The environmental impact of paper production is important to note since it has many
negative effects and which are very vulnerable to Pakistan’s overall environment as well.
Here are some of them:
• 40% of the world’s commercially cut timber is used for the production of paper.
• Pulpwood plantations and mills endanger natural habitats.
• Over 30 million acres of forest are destroyed annually.
• The pulp and paper industry is a big contributor to the problem of deforestation and
is partly to blame for the endangerment of some species that live in the forests.
• The life cycle of paper is damaging to the environment from beginning to end. It starts
off with a tree being cut down and ends its life by being burned – emitting carbon
dioxide in the atmosphere.
• Paper production uses up lots of water. An A4 paper requires 10 liters of water per
sheet.
• The paper industry is the 5th largest consumer of energy in the world. It uses up 4% of
the world’s energy. To produce 1 ton of virgin paper, it is estimated that 253 gallons
of petrol is used.
Small Paper, Big Problem
The business of issuing paper receipts, by itself, is a microcosm of the problem. Here are some
statistics on the environmental damage we cause by using receipts:

PAPER AND BOARD
SECTOR
• Receipts waste one-billion gallons of water

• To make them, we kill 10 million trees
• To supply them, we use 250 million gallons of oil
• Overall, receipts make for 1.5 billion pounds of waste
Environmental damage isn’t the only problem with receipts. Up until fairly recently, we had
no idea as to the health effects of thermal paper. In addition, Govt of Pakistan is imposing
some strict laws on this industry, in order to save the environment from being spoiled through
these worse factors.
Paper Is Big Business
Coniferous and deciduous trees are the primary pulp and paper sources, but companies don’t
just do their logging in temperate regions where pine forests thrive; according to the
Encyclopedia of Occupational Health and Safety, companies also harvest in tropical and
boreal forests and which is bad for environment and against the policies of go green in
Pakistan. On the other hand, Packages needs a huge amount of raw material from trees as well
and for this their suppliers will ultimately cut the trees that will result in shortage of the trees.
In the result, there would be a shortage of trees in Pakistan.
Water pollution
Waste water discharges for a pulp and paper mill contains solids, nutrients and dissolved
organic matter such as lignin. It also contains alcohols, and chelating agents and inorganic
materials like chlorates and transition metal compounds. It spoils the water of rivers and
canals as well and causes the water pollution in Pakistan.
Deforestation
Worldwide, deforestation is estimated to be responsible for about 12% of greenhouse gas

emissions. Forests house carbon in wood, leaves, and soil. When loggers and developers cut
down forests, CO2 escapes into the atmosphere. A deforested area can’t absorb and store any
more CO2. Furthermore, animals and indigenous people who once depended on forests for
life can do so no longer.

PAPER AND BOARD
SECTOR
Minimizing Paper Pollution
Paper is recyclable, but not everyone recycles. We need to make an effort to be consistent
about recycling. We’ve come to the point where people need to contribute to a greener
environment by changing the way they manage their personal wastes. Remember to
Reduce, Reuse and Recycle – and encourage everyone you know to do it.
Buy recycled paper and encourage the paper industry to use environment friendly ways of
manufacturing paper. As a consumer, you can influence how industries produce the
products that you buy.
Societal Environment .
GPEST Analysis
Global challenges
Globally, paper industry has realized a linkage between production of paper and the farming
community thereby infusing huge capital in agricultural economy. Worldwide, all companies
have been quick to create conducive land use/forestry policies to encourage large-scale
production plantations and attract mega investments in pulp and paper/paperboard
manufacturing and in the process creating millions of jobs.
Innovations as a global challenge
The Research and Development department at Packages is tirelessly working to understand
consumer needs and providing innovations on both design and structure based on global
trends. The department also plays a key role in supporting the customers in their cost
control initiatives as we see the growth of our customers business as our success.
Go Green concern
We are a member of the global network of green offices project of the World-Wide Fund
for Nature, and the first company in Pakistan to be awarded Green Office diploma in the

PAPER AND BOARD
SECTOR
manufacturing sector. Green Office is an environmental service for/by offices. With its help,
work places are able to reduce their burden on the environment, achieve savings and slow
down environmental changes.
Political Factors
Environmental Laws: Paper Industry is one of the most pollution like (water, air and waste)
causing Industry in Pakistan. The effluent that flows out of the production processes contains
toxic chemicals that can cause damage to the crops. The paper industry has been intensive to
these factors until recently and it has been the case for packages industries as well, as the
production plant of the packages has been shifted from Lahore to Kasoor due to complains of
the residents.
Government Stability: Too often turmoil in the Government causes uncertainty in the
Government policies and is often viewed as not favorable for the market. As far as the paper
industry is concerned there are serious implications for Government policies. For Example,
throughout the history of Pakistan, the government have not allowed any manufacturing for
newsprint paper fearing that it would cause growth in the Newspaper industry, a threat to the
undemocratic Govt. Packages produce most of the paper they require themselves, but these
implications have adverse effects as a whole.
Specifically, political factors include areas such as:

Tax policies (Taxes) Trade and tariff restrictions
Labor law Employment laws
Trade restrictions or policies Level of government interference
Political stability or instability in the market-place
Obstacles from Government Side
• Tariff and local duties irregularity

• Continuous increase of prices of paper products like books and copies by government

PAPER AND BOARD
SECTOR
• Imposition of 15 percent excise duty

• 25 percent regulatory duty and 20 percent anti-dumping duty
• Law and order situation

PAPER AND BOARD
SECTOR
Economic Environment Factors
Market requires purchasing power as well as people. The available purchasing power in an
economy depends upon current income, prices, savings, debt and credit availability.
Marketers must pay close attention to major trends in income and patterns in consumer
spending like:
• Higher Interest Rates • High Inflation
• Devaluation of Money • Low income

Economic growth and inflation
Weak economic growth also impacts Packages Limited investments, traditionally considered
risky, as investors display flight to safety in tough economic times. High inflation results from
central banks raising interest rates in the country. This leads to a higher cost of borrowing for
Packages Limited, which leads to reduced capital and R&D investments. With the limited
available capital, the Packages Limited has to offer higher return rates to obtain funding. As
this is a corporation and Packages needs funds to finance its projects.
Oil prices
As paper and board, industry needs colossal amount of oil. Therefore, Lower oil prices will
assist to boost up Packages Limited in the short term. A reduction in oil prices leads to lower
raw material rates and their expenses as well. The reduced input cost is further passed on to
Packages Limited thus resulting in higher profit margins for the company.
Tax rate
The term Tax is pivotal in economics. Packages limited company is paying more taxes in this
year as compare to the last year. In addition to this FBR is increasing the sale tax and dividend
payment tax on this industry.
Income level
The income effect may have positive or negative consequences on Packages, depending on
many factors. The thing is that, the income effect relates to how a consumer spends money
based on an increase or decrease in their income level respectively. An increase in income
(LMC) Lahore
results in demanding for more services and goods, thus spending more money. A decrease in
income results in the exact opposite. When the income of the people is lower, they prefer to
University of Education 9|Page

PAPER AND BOARD
SECTOR
buy mandatory items, which they need badly. As far as it is concerned with the products of
the Packages being offered to their consumers. We think that lower income level people will
hardly buy the products like tissues rolls and so forth.
Consumption patterns
In these days, People prefer to use the tissues, whether they are at home, ceremony, on a
meeting and so forth. People are getting more awareness about hygienic and its importance.
Therefore, people prefer to consider to their health issues. Stock market Trends
Stock market of the Packages’ is getting healthy day by day and performing very well for the
best interest of the company, its shareholders as well as its existing and new investors. This
will ultimately effect positively on the business as a whole. To finance operations, Packages
needs capital. One of the most effective ways to raise capital is to issue stock. Doing so
generates more capital when the stock market is up like in these days as the Pakistani Stock
Market is at its peak and investors are enjoying returns on their investments. Potential
investors exist in greater abundance, as more people put their money in stocks during bull
markets. Prices are higher during a bull market, so Packages can sell each share for more
money.
Value of the dollar in the world market
As the Packages limited company occupies more than 79% of its ownership of Print care
(Ceylon) Limited Sri Lanka. It engages in sending and receiving the funds, not only for profit
or investment but also for importing of raw material like Ink and exporting its products to the
various parts of the world. So, company will be keeping its eye on the dollar rate fluctuations.
Import and export factors
Packages limited primarily engage in imports and exports of raw materials, machinery and
sending its finished products to the other counties. Custom duty and other port taxes will
affect the operations of the Packages. As packages imports raw materials or machineries; both
are used in the manufacturing sector and once they accomplished the production, they export
their products.
Monetary policy (Interest rates)
High interest rates will make it more expensive for the Packages to borrow money to finance
their operations, payroll and purchases. However, Low interest rates reflect the price of goods
because lower rates make the financing of operations, manufacturing and distribution less
University of Education (LMC) Lahore 10 | P a g e
PAPER AND BOARD
SECTOR
expensive for Packages. In addition to this, Packages plan for expansion during periods of
low interest rates, because the expense of that expansion is lower than during high-interest
rate periods.
Social Factors
The number of marriages/Particular ceremonies
The sale of the Tissues and related products of the Packages will be much more if the number
of events increases. That is what the case will be. Because, nowadays people and management
of the events prefers to make sure the usage of tissues.
Lifestyle/Buying habits
A person’s lifestyle is essentially who he/she is. A person’s habits, beliefs, morals and
financial status combine to manifest how he/she chooses to live his//her life. It determines the
choices they make, the things they want and the things they purchase. If those trends change,
the business needs to change. Therefore, over the period the preferences of the people with
respect the usage of the products has been modified actively. Consumers such as, students,
jobholders, business people and many others prefer to keep the packets of tissues in their
pockets likewise they ask for it while at restaurants that is the result of changes, which has
developed in the buying habits of consumers. That is how the preferences of the people are
being changed. So, it has become significant for the Packages to keep an eye on the
preferences as well as buying habits of the people as a whole.
Education
Education has its own significant. For business as a whole it benefits through many ways. For
example, if the more well-trained workers employed by Packages, the more they can
theoretically produce. An employee’s intellectual ability can be treated as an asset. If we see
the significance of education from the consumer’s point of view, the more the educated people
are there. We believe that the more the buyers would be of tissues and things like that. The
reason behind this is that these consumers will be awarded by the importance of cleanliness,
benefits of using tissues and so on. Interestingly, their target market for Rose Petal is also
Includes educated people.

PAPER AND BOARD
SECTOR
Attitude toward Product quality
Quality, Packages are very concerned about the production of the quality products and the
quality orientation of their products has been the major reason that their business customers
are their clients from many decades. Because, the aim of Packages Ltd is to follow the product
concept which shows that the company is very much particular and do not compromise on the
quality of its tissues. It has a separate quality control department, which tests the tissues in
terms of their quality on the spot before dispatchment. So, any loop holes in tissue quality is
checked at the same time.
Furthermore, their consumers are quite satisfied from their products and services. In addition,
in these days’ customers’ demands more quality-oriented products; which Packages are
looking to enhance their quality according to the expectation of the consumers.
Technological forces
Technology is key to success for a business nowadays to be sustained in the modern and
technological world. Packages has realized that they must have to equip their selves with the
new and upgraded kind of machinery that will ultimately increment their production level and
profit as well. For this, packages limited has purchased couple of machineries such as, a new
rotogravure printing machine, Lemanic rotogravure inline printing and cutting creasing
machinery, new 8-color Flexographic printing machinery.
In general, Technological changes have become particularly significant in this

postmillennium world; this is particularly true in terms of modern communication
technologies. The creation of databases and electronic communications have enabled vast
quantities of information to be shared and quickly distributed in a modern company enabling
vast cost reductions, and often improvements in service.
For example, Heavy mechanical complex can introduce new production systems for the
Pakistan industry. Still the machinery of most of the organization is imported from abroad
which specifically has increased the cost for Packages. Improved production process it will
accommodate in order to increase the productions at lower costs. This will have a positive
impact on company as a whole. In Pakistan, there is no attention given to improve the

PAPER AND BOARD
SECTOR
production systems and we have to rely on the technological innovations of the West. This
trend can be changed by increased interaction of Govt, industry and technical people.
Specifically, technological factors include:
Communication channels New business processes

Automation Internet
Rate of technological change Technology development Production (level)
Global communications

PAPER AND BOARD
SECTOR
Task Environment .
Packages competes in the indigenous consumer goods market as well as in global world A
Five Forces Analysis (Porter’s model) of the company shows the need to strategically
prioritize competition and the bargaining power of customers in the industry environment.
Michael Porter’s Five Forces Analysis model is a management tool for understanding the
impacts of external factors in a firm’s environment. In Packages, Five Forces Analysis,
competitive rivalry is viewed as one of the strongest external forces, along with the bargaining
power of buyers (Business & Consumers). To ensure long-term success, the company must
address the issues related to these forces Packages’, market position and organizational
strengths are adequate to address such forces. A Porter’s Five Forces analysis of Packages
identifies competition and consumers as the most important forces in the company’s industry
environment. The external factors related to these forces have a direct impact on Packages’
financial performance in the consumer goods market.
Overview: Packages’ Five Forces Analysis
Packages deals with a wide variety of external factors, considering the extent of its operations
in the domestic as well as in global consumer goods market. However, as shown in this Five
Forces analysis, such external factors lead to variations in the intensities of the five forces
impacting the business. The following are the intensities of the five forces in affecting
Packages
1. Competitive rivalry or competition (Weak Force)

2. Bargaining power of buyers or customers (weak force)
3. Bargaining power of suppliers (moderate force)
4. Threat of substitutes or substitution (weak force)
5. Threat of new entrants or new entry (weak Force)
Highlights
This Porter’s Five Forces analysis highlights competitive rivalry and the bargaining power of
buyers as the issues with the highest intensity in affecting Packages business. The bargaining
power of suppliers is also important, but has moderate impact on the company with respect
to prices and other factors. The threats of substitutes and new entry have nominal effect on
Packages as well as the bargaining power of the customers as their approach to decrease the
price is zero.

PAPER AND BOARD
SECTOR
Porter’s 5 Forces
1. Threat of New Entrants (Weak Force)
Packages competes with established firms as well as new firms in the Paper & Board goods
industry environment. This section of the Five Forces analysis considers the influence of new
firms on the industry environment. The following external factors create the weak force of
the threat of new entrants against Packages:
• Low switching costs (strong force)

• High cost of brand development (weak force)
• High economies of scale (weak force)
The low switching costs enable new entrants to impose a strong force against Packages. For
example, consumers can easily decide to try new products from new firms. However, it is
costly to build strong brands like Packages. This external factor weakens the intensity of the
threat of new entrants against the company. Also, Packages takes advantage of high
economies of scale, which support competitive pricing and high organizational efficiencies
that new firms typically lack. As a result, the company remains strong despite new entrants.
Based on this section of the Five Forces analysis, the threat of new entry is a minor concern
in Packages’s industry environment.
2. Bargaining Power of Suppliers (Moderate Force)
Suppliers impact Packages’s industry environment by affecting the level of supply available
to firms. This section of the Five Forces analysis presents the influence of suppliers on
companies. The following are the external factors that contribute to the moderate force of the
bargaining power of suppliers on Packages:
• Size of individual suppliers (moderate force)

• Moderate population of suppliers (Weak force)
• Moderate overall supply (moderate force)
While Packages has large suppliers like foreign renowned firms that supply Wood Pulps,
Wheat Straw, Waste Paper and Chemicals constitute major raw materials for the Paper and
Board. Furthermore, the average supplier is moderate in size. In addition, the moderate
population of suppliers enables them to impose less significant and limited influence on firms

PAPER AND BOARD
SECTOR
like Packages. Similarly, the moderate level of the overall supply adds to such significant but
limited influence of suppliers. For example, any supplier’s change in production level leads
to significant but limited change in the availability of raw materials used in Packages’s
business.
3. Bargaining Power of Customers/Buyers (Moderate Force)
Packages’s business and industry environment slightly depend on the response of consumers
to its products especially business consumers. The influence of buyers on business
performance is considered in this section of the Five Forces analysis. Packages must address
the following external factors that lead to the strong force of the bargaining power of
customers:

• High quality of information (strong force)
• Large size of individual buyers (strong force)
• Large business consumers (Strong force)
• Price Giver (Strong Force)
The low switching costs make it easy for consumers to transfer from Packages’s products to
other companies’ products. If they are not agreed with respect to the prices or conversation.
In addition, consumers have access to high quality of information about consumer goods,
making it even easier for them to decide when transferring from Packages to other providers.
For example, buyers can compare products based on their quality standards. Furthermore,
Packages captured large size of individuals and business consumers as they got more than
35% of the market share. Moreover, majority of the business which are operating in Pakistan
whether they are MNCs or indigenous buys their products from Packages. Due to their
Monopolistic approach. The packages Ltd is the price giver. Based on this section of the Five
Forces analysis, the bargaining power of customers is of the moderate forces affecting
Packages’s consumer goods business.
4. Threat of Substitutes (Weak Force) (TOWEL)
Substitutes can reduce Packages’s revenues and the strength of firms in the paper & board
goods industry environment. The impact of substitution is determined in this section of the

PAPER AND BOARD
SECTOR
Five Forces analysis. In the Packages case, the following external factors are responsible for
the weak force of the threat of substitution:

• Substitute availability (weak force)
• Low performance to price ratio of substitutes (weak force)
The low switching costs enable consumers to easily use substitutes to Packages’s products.
This external factor imposes a strong force on the company and the paper & board goods
industry environment. However, the overall impact of substitution is weakened because of
the low availability of substitutes. For example, it is easier to access Packages’s substitutes
like Tissues related product than flexible business units for the business. In relation, most
substitutes have low performance with minimal or insignificant cost difference when
compared to the products of Packages. This condition makes Packages’s products more
attractive than substitutes, thereby further weakening the intensity of the threat of substitution.
This section of Packages’s Five Forces analysis shows that the threat of substitutes is a minor
issue in the business.
5. Competitive Rivalry or Competition with Packages (Weak Force)
Competition is a weak force in Packages’s industry environment. This section of the Five
Forces analysis identifies the external factors that present the impact of firms on each other.
The weak force of competitive rivalry against Packages is based on the following external
factors and their intensities:
• Number of firms (A bit strong force)

• True competition (Weak force)
• High aggressiveness of firms (Weak force)
• Low switching costs (Strong force)
There are couple of firms operating in the Paper & Board industry. This external factor
imposes a strong force on Packages. In addition, these firms are generally aggressive, further
adding to the intensity of competition. Packages experiences weak competition because they
have successfully developed Monopoly from last 24 years. However, low switching cost is a
strong force which can be vulnerable for the packages. For example, it is easy for consumers
to switch from one firm to another.

PAPER AND BOARD
SECTOR
Opportunities Threats
Advantage of fast growing industry in

Low Switching Cost
Pakistan
Substitute availability
Monopolistic Approach
High number of Firms
High quality of information
Bargaining power of suppliers is high (57%, 14%)
Large size of individual buyers Strong competition from the Cottage Industry in
Karachi producing corrugated cartons.
Large business consumers
Entrants of MNCs
Price giver Other multinationals such as P&G, as already their

competitors for Feminex, can further capture market
High cost of brand development share.
Customer product department is not mature enough to

compete if a single large operator starts business in
same segment.
Less concern for aggressive marketing
• Oil Prices
Issues Priority Matrix
Issues
Priority Matrix
• Air and Water Pollution
• Income Level
• Waste Management
• Consumption Patterns
• Oil and Energy Consumption of
• Go Green Concern Customers
• Environmental Law
• Currency Fluctuation
• Taxes and Duties
• Lifestyle
• Import and Export factors

PAPER AND BOARD
SECTOR
• Education • Technological Development
• Attitude towards Product Quality
Chances of Occurrence
High Medium Low
Environmental Law
Consumption Patterns
Lifestyle
Education
Air and Water Pollution Go Green Concern
Oil and Energy Consumption Income Level
Taxes and Duties Attitude towards Product Quality
Technological Development
Waste Management Currency Fluctuation
Import and Export factors
Oil Prices

PAPER AND BOARD
SECTOR
Opportunities Threats
Environmental Concerns (Air & Water Pollution,

Quality Deforestation)
Income Level Go Green Concern
Lifestyle Taxes
Demand for flexible packaging Port Duties
Technological Competitiveness Oil Prices
More Segments Opportunity Inflation
Growing Economy Cross Border Restriction
Approach to Global Market Governmental Regulations (Environmental Law)
Consumption
Education
EFE Matrix .
Weight Score Weighted
Score

PAPER AND BOARD
SECTOR
Opportunities
O O O
Lifestyle
0.3
Education 0.1 3
0.4
Demand for flexible packaging 0.1 4
0.9 3 0.27
Technological Competitiveness
0.8 3 0.24
Fast growing industry in Pakistan
0.7 3 0.21
Approach to Global Market
0.6 3 0.18
Threats
Low Switching Cost 0.1

0.2
Environmental Concerns 0.1 2
0.3
Taxes 0.1 3
0.2
Competition 0.7 2
0.21
Bargaining power of suppliers is high 0.7 3
2 0.14
New Entrants of MNCs 0.6
3 0.18
1.00
2.83
INTERNAL ENVIRONMENT
Value Chain Analysis .

“Value chain analysis is a strategic analysis of an organization
that uses value creating activities”
Packages LTD has the value chain that they use to identify ways to create more customer
value. Basically, value chain at Packages ltd is broken down in two activities.
Primary Activities or Core Processes

Primary activities contribute to the physical creation of the product, its sales and transfer to
the buyer and after sales services.

PAPER AND BOARD
SECTOR
Inbound Logistics
Raw material to produce paper and board is obtained locally through regular purchasing from
the agricultural sector and to maintain the quality the ingredients are mixed with imported
wood pulp. About 9000 tons of wood pulp and 1500 tons of chemicals (Sulphur and raisin)
are imported annually.
 Local Raw Material:
Raw materials procured locally by the company include wheat straw and waste paper.
Wheat Straw
Wheat Straw is the by-product of wheat. Pakistan’s annual wheat production amounts to
approximately 20 million tons and an equal amount of wheat straw is also produced in the
process. Since wheat straw is a seasonal commodity, the entire annual requirement is
purchased by Packages from April to December. Purchases are made at purchase centers
spread across the wheat growing areas of the country. The wheat straw purchased at the
centers is bailed and stored at the centers and transferred to the factory on need basis. The
company currently procures around 100,000 tons of wheat straw annually which is
approximately 0.5% of the total wheat straw production in the country.
The use of wheat straw not only provides an indigenous source of raw material but also shields
the company against adverse exchange rate movements faced by mills based on imported
wood pulp technology.
Waste Paper
Waste Paper is mostly purchased through registered / approved vendors at the mills and waste
purchase center in Karachi according to the company’s requirements. With the installation of
its 100,000 tons writing and printing paper machine (PM-7) at Kasur, the company has also
started to import waste paper from USA and Middle East.
 Imported Raw Materials
Major imported raw materials include wood pulps, polyethylene and packaging films.
Packages prefers to procure imported materials directly from renowned manufacturers which
have a primary focus on quality and provide strong technical support.

PAPER AND BOARD
SECTOR
Wood pulp
The use of wood pulp varies based on the final product specifications as high quality
writing/printing paper uses a higher proportion of wood pulp as compared to brown paper.
Wood pulp, both bleached and unbleached is the highest value industrial commodity of the
company’s total import bill. Packages procures Bleached Kraft Pulp from USA which is the
largest pulp supplier in the world. The company maintains an excellent business relationship
with its wood pulp suppliers over the past 35 years which can be ascertained from the fact
that the suppliers work on CAD basis (without the cover of L/C). Further in the post expansion
scenario, the increased demand of wood pulp is also being met from the supplier’s mills
situated in Canada.
Unbleached Kraft Pulp is also being imported from USA and purchases are made on monthly
rolling forecast basis. Further, supply of wood pulp is adequately distributed among other
suppliers in such a way that backup arrangements are always in place to meet any unforeseen
shortfalls in raw material supply.
Polyethylene
Polyethylene is being imported primarily from Qatar and purchases are made based on the
company’s supply chain management process. Suppliers are provided semiannual forecasts
of the company’s requirements and timely supply is ensured for smooth operations of the
factory.
Packaging Films
Packaging Films such as polyester films and PVC films are imported from suppliers in
Thailand and Japan while BOPP Films are either imported or locally procured from Tri-Pack
Films Limited, a joint venture company of Packages Limited. Payments are normally made
after 30 days’ credit period.
Packages limited has made some long-term contracts with service providers i.e. Transporters.
It also has Personals at regional offices overseeing the smooth transit of raw material.
Transparency and monitoring is made through deployment of IT. Also, Packages have
efficient storage facility-easy storage and retrieval.
Packages limited paid transit in fiscal year 2016 Rs. 247.656 million on raw material (2015:

PAPER AND BOARD
SECTOR
Rs. 205.130 million).
NPD/ Operations
Continuous flow is followed in the paper and board mill and assembly in the packaging
division as paper board is cut in appropriate sizes, printed and then modified to be folded. /
into the desired shape.
For new product development, Packages limited has hired professionals, provides
Apprentices Trainee Courses, acquired automated manufacturing process. Time to time it has
purchased new equipment and bring revolution in its machinery and process. Efficient plant
operations are there, quality production control system is there and efficient plant layout and
workflow design is there.
During Fiscal year packages was having Stock in Trade worth Rs 1769 million against 2015
figures of Rs 1780
Outbound Logistics
Tie packaging division uses all the paper produced by paper and board mill, which are stored
from time to time to accumulate in the warehouse and prevent from stock outs. Final products
are transported from the production department and the warehouse via trucks.
Packages limited have stockyards across the country and regional sales distributers that are
linked through SAP. It also has an efficient security system for prevention of any kind of
pilferage.
At this stage, Packages is associated with collecting, storing and distributing the final product
to buyers with effective shipping processes to provide quick delivery and minimize damages.
Packages has adopted efficient finished goods warehouses processes. Packages prefer to make
shipments of large lot sizes to minimize its transportation cost. Also, its employees use quality
material handling equipment.
Marketing and Sales
Packages provides packaging solutions to major consumer industries in Pakistan through cost
effective packaging. They do not have to extensively practice aggressive marketing or sales,

PAPER AND BOARD
SECTOR
as their position is strong being the only one capable of providing high quality paper and
board.
Packages has a structured approach to understanding the requirements of its customers. It has
clear identification of product requirements and hence leading to development of innovational
products e.g. tissues and many more.
Quick assessment of the changing market dynamics and consumer preferences also have large
number of distributers.
Packages has made up marketing revolution by understanding the era to era needs and
demands of its customers i.e. in 1981 it packages modified a paper machine to produce tissue
paper as response to the growing awareness and demand for hygienic disposable tissues. Rose
Patel brand name was launched with facial tissues, later expanded to include toilet paper,
kitchen roll, table napkin, party pack and pocket pack. The idea of convenient and economical
disposable items was extended to paper cups and paper plates.
In Packaging Division, Packages is primarily engaged in producing packaging material for

companies involved in manufacturing of fast moving consumer goods (FMCG) in food,
tobacco, pharmaceutical, and other sectors. Almost 75% of Packages’ sales are to FMCGs.
Packages uses direct selling to market its products to this segment. The company allows credit
terms of up to 30 days to packaging customers from the date of invoicing.
In Consumer Products Division, this division manufactures and markets tissue paper,
disposable paper cups and plates and feminine hygiene products. Packages is the largest
supplier in the domestic tissue paper category with brand names Rose Petal, Tulip and Double
Horse. Both household and away from home customer segments are catered through an
extensive sales and distribution network. Feminine care products are marketed through
Feminex brand. Consumer products of Packages are also exported to the region including
Afghanistan and Central Asia.
During the fiscal year 2016 company’s Marketing and distribution cost was amounted
to Rs 922 million against previous year’s expenses of Rs 678 million (35.95%
increment).
Local sales were amounted to Rs 19,767 million in fiscal year 2016 and Rs 18,683
million in previous year. (5.80% increment).

PAPER AND BOARD
SECTOR
Export sales were amounted to Rs 27 million in fiscal year 2016 and Rs 28 million in
year 2015 (4.44% Decrease)
Company’s cost of sales was Rs 13,221 million during year 2016 and Rs 12,664 in year
2015 (increment of 4.40%)
During the year 2016, company’s net sales were amounted to Rs 16,839 million that
was Rs 16,025 during year 2015 (5.08% increment).
During the year 2016 company paid sales tax and excise duty of Rs 2,934 million
against previous year of 2015 that was Rs 2,657 million (10.41% increment)
Services
There do not exist any dealers network and Packages do not operate in consumer market to
produce paper and board except of providing tissue papers and toilet paper and napkins.
Service Departments Packages believes that its entire operations have to be in line with the
needs of the customers. Our operations are supported by excellent service departments who
consistently strive to deliver what the customers need on timely basis.
Customer Services Department (CSD)
Our Customer Services Department (CSD) constantly monitors production and supply chain
to ensure on-time delivery to the customer to ensure that the right quality product reaches the
customer at the right time. CSD also performs core liaison function to arrange development
activities as well as technical support and after sales support to customers. Customer
complaints are followed by proper feedback and management reporting so that customers are
always given the due attention they require.
Pre-Press Department (PPD)
Pre-Press is the nerve center of Packages Limited where concepts and ideas are developed
and woven with marketing strategies of customers to attract the end users of the products
produced by customers.
The department has been revolutionized over the last two decades and now follows the design
process completely in soft form; images and texts are simultaneously directed from computers
to:

PAPER AND BOARD
SECTOR
• Image setters;
• Plate making devices (CDI, Digital System for Flexo); and
• Digital engraving machines
In the Art and Camera Department, Packages has high-tech computer systems where digital
files are produced instead of photographic negatives. For achieving high quality in all of
printing methods (Roto, Flexo and Offset), Pre-Press department is equipped with the latest
technology in cylinder, photo polymer and plate making equipment which provides support
to various production departments.
Pre-press converts the packaging design according to the technical requirements on any
printing technique like Gravure, Flexography and Offset without compromising the creative
integrity of designs.
Secondary Activities or Support Processes

Secondary or support services assist the primary activities and each other.
Research and Development (R&D)
Research & Development continues to be one of Packages’ unique selling points. As the
consumer industry focuses on cost control, limiting carbon footprint and an overall mindset
of “more with less”, innovation is the name of the game.
The Research and Development department at Packages is tirelessly working to understand

consumer needs and providing innovations on both design and structure based on global
trends. The department also plays a key role in supporting the customers in their cost control
initiatives as we see the growth of our customer’s business as our success. We have great
inhouse R&D facilities which help us in keeping ourselves updated to aggressive market
needs.
The company’s R&D center and production facilities are located at the existing premises at
Shahrahe-Roomi, Lahore. The center is well equipped, both in terms of human resources and
equipment, to provide technical support to production and to the external customers. These
facilities are used to study the effect of different variables on the process and the product and
are also available for comprehensive testing of paperboard and its products.
Currently Packages limited is investing 34% of its investments in R&D Sector.

PAPER AND BOARD
SECTOR
IT & other Technological Development
Packages has developed many IT software applications to run its organizational activities such
as SAP to fully integrate all its business processes. SAP is an Enterprise Resource Planning
(ERP) software through which a common database allows the company to be fully integrated
and be live in respect of its business process information. SAP products empower people to
respond quickly and decisively to dynamic market conditions, helping business achieve and
maintain competitive advantage by improving the response time and service to its customers.
Packages has always followed its policy to invest into modern technology and at the same
time upgrade its existing equipment which can be ascertained from the fact that in the past
ten years, the company has invested around USD 450 million on acquiring modern
technology, enhancing
capacity and equipment to safeguard environment. The aforesaid includes investment in a

new paper and board mill, a new tissue machine, rotogravure printing machine with online
cutting and creasing, computerized pre-press, laser cut dies, 5-layer extruder machines, new
fiber line, chemical recovery plant etc. Packages has an in-house state of the art cylinder
making and flexographic plates making facility for its high-speed printing machines which
enables the company to ensure its quality control standards.
Package Pledges to provide the market with the best quality products at competitive prices
through a system of customer driven, service oriented and dynamic management team. To
meet this obligation, the company continuously updates of employee skills by training,
acquisition of modern technology and regular revaluation of its quality control and assurance
system.
Improvement and new development are part of packages corporate objective to sustain
continuous and consistent progress in quality system. Moreover, company is using Computer
integrated manufacturing for production and manufacturing process.
Human Resource (HR) Management
Generally, University graduates are inducted by Packages limited and given intensive inhouse
training. They are groomed and trained in each department for a better understanding of how
various systems work in Packages limited. This training enables them to comprehend and
work for achieving corporate objectives. They also provide competitive salaries and wages.

PAPER AND BOARD
SECTOR
Statutory benefits such as social security, provident fund group insurance, worker’s
participation fund, worker’s student education expense, employees old age benefits schemes
and federal education fee schemes are provided as well. Packages also provide loans for
bicycles, motorcycles and cars. Bonus and gratuity are part of the scheme to keep managers
and workers as a happy and contented Packages family.
Packages limited has a vast pool of technically competent engineers and managers. It focuses
on development of technical capabilities and for this purpose it has technical training centers
and also have made alliances with technical institutes.
Retirement benefits paid by Packages limited during fiscal year 2016 were Rs (18,679,000)
and during year 2015 was Rs (15,329,000).
Procurement
Packages limited has developed a collaborative “win-win” relationship with its suppliers of
raw material. Packages have worldwide network of potential suppliers. Locally available raw
material includes wheat straw and waste paper whereas, imported raw material includes wood
pulp, polyethylene and packaging film. Packages have specially designed storage houses for
storage and retrieval of raw material.
Some useful material like printing ink and tri pack film are locally produced with the help of
Packages subsidiaries like Tri Pack Films Limited and DIC Pakistan Limited.
Although Packages has developed long term relationships with a stable and loyal pool of
suppliers, the need is to put more attention for analysis and selection of alternate sources of
inputs to minimize dependence on one specific supplier of specific raw material.

PAPER AND BOARD
SECTOR
ORGANIZATION STRUCTURE
(Hierarchy)
Organization Culture

PAPER AND BOARD
SECTOR
Our management style can best be described as egalitarian, with everyone having an equal
opportunity for development and growth. People are recruited into the company based purely
on merit and with total disregard to considerations of gender, race, color or creed. Merit alone
is the criterion of all subsequent professional growth. Performance evaluations are conducted
based on achievement of individual objectives that are in conformance with the departmental
and overall corporate objectives of the company. Promotions are similarly guided by merit
and the suitability of an employee to the position for which he or she is being considered.
Our working environment is so relaxed as to be almost casual; there is no bossing around or
subordination, no name tags on offices, and no appointments required for calling on seniors.
People are encouraged to communicate informally at all levels and interpersonal relationships
are greatly valued. Written communication is simple and to the point, with even personal
names abbreviated to initials to save time.
Our leadership follows the principle of 'management by walking around', where managers are
expected to make daily rounds of all areas of responsibility, and have first-hand information
of all significant happenings.
This informal style of management may seem arbitrary, but is serious without being
intimidating and has stood the company in good stead over the years. Today, our corporate
culture is so attractive that most people join us straight from an educational institute and leave
only after serving their full tenure.
Our policies and core values are aimed towards creating an informal yet stimulating
teamoriented work environment with a culture of sharing and open communication. We
cherish the diversity of viewpoint of every individual; we realize this encourages innovation
and develops character.
All employees have the right to a stress and injury free work environment. We ensure our
employee health and safety by providing various in-house facilities such as a gym and making
sure that all staff understand and uphold our safety policy. All our employees are permitted
and encouraged to afford time and attention to personal concerns.

PAPER AND BOARD
SECTOR
MARKETING FUNCTIONS AND STRATEGIES

Packages marketing functions and strategies changes with respect to its product divisions.
Packaging Division:
Packages provides multi-dimensional and multi product packaging solutions to its clients that
are involved in manufacturing consumer products across industries.
The Packaging Division comprises of two business units based on packaging material
categories:
1. Folding Cartons 2. Flexible Packaging
1) Folding Cartons
Folding Cartons With over 59 years of experience in providing reliable service and quality,
Folding Carton business provides a wide range of carton board packaging products to various
industry segments.
Folding Cartons business is equipped with state of the art machinery and a dedicated and
qualified workforce that is supported by strong value chain. These factors contribute in
providing high volumes and consistent quality at a competitive price for our esteemed
customers.
Market Segment
As the consumer industry in Pakistan matures, competition in the market has increased and
the market has a greater focus on product differentiation through branding. In the first
instance, this is carried out through attractive and unique packaging which is driving demand
for our products. Our team understands well the needs of the market and thus development
work and packing modifications are undertaken correspondingly. Folding Carton business
works to deliver the best carton board products that result in high value-added packaging for
industries like:
Pharmaceutical Confectionary
Tobacco Home care products
Personal care Food (including frozen)

PAPER AND BOARD
SECTOR
2) Flexible Packaging
To accommodate increasing demand for sophisticated packaging, Packages established a

Flexible Packaging business unit in 1986 at its Lahore plant. Flexible packaging business
provides a one stop packaging solution by providing high quality detailed graphics in
Flexographic and Rotogravure printing. Flexible packaging business also provides lamination
for plastic films, aluminum foil, paper, multi-layer blown film extrusion for high speed
technology in multi-lane slitting, standalone spout inserted bags, poly-bags, zipper-bags,
sleeves and ice cream-cones. As part of environmental friendly organization, Flexible
Packaging business unit is also working on 4 R’s of Packaging I.e. “Reduce, Re-use, Recycle
and Recover”.
Market Segment
Flexible Packaging business unit not only provides cost effective and perfect packaging
solutions to our valuable customers but also offers them strong technical support on products.
We have great in-house R&D facilities which help us in keeping ourselves updated to
aggressive market needs. The Flexible Packaging business caters to a wide range of customers
across industries including food, soaps & detergents, pharmaceuticals, pesticides and personal
& home care.
Consumer Products Division:
Packages started commercial production of tissue and other consumer products in 1982 at the
Lahore Plant. We currently provide a complete range of tissue and personal hygiene products
that are convenient, quick and easy to use; ranging from facial tissues to tissue rolls, table
napkins, pocket packs, kitchen towels, party packs, paper plates and cups. We understand that
tissue and allied products are seen as a luxury item without the requisite attention being paid
to the hygiene element. Packages has always attempted to develop the market for this business
segment through education of the population on the hygiene associated with the use of the
products.
Product development has always been our focus based on the demands and needs of our
consumers. Great effort is put into producing improved and innovative products to make life
hygienic and comfortable for our consumers.
University of Education |Page

PAPER AND BOARD
SECTOR
(LMC) Lahore 35
Brands
Key brands of Consumer Products Division are:
Rose Petal
Tulip
Maxob
Double Horse
In Packages limited sales force is strict to spend almost 80% of time in market and 20% of
their time in offices. Their distribution network is very strong.
Distributers
There are 211 distributers of Packages all over the Pakistan, and only in Lahore they have 5
distributers and whole 211 distributers are divided among 5 zones are:
Lahore, Islamabad, Karachi, Sukhar, Multan.
After these distributers, Packages have 7 sales supervisors to check upon their performance
they have meeting of supervisor in department every Friday where they discuss about ongoing
problems and about complaints from market and customers and about distributer’s
performance.
Packages sales team is assigned targets and they have to meet these targets and one of the
important thing is the institutional sales. In institutional sales they target the corporate, Food
chains, Hotels, and restaurants. These institutions include Pizza Hut, McDonalds, PIA, PM
House other different companies like PARCO, Pearl Continental etc.
Goals indicates what a business wants to achieve, whereas strategy indicates how to get these
goals. Marketing strategy for Packages can be presented in a list as follows.
Target market Advertising

Positioning Sales promotion
Product line Research and development Price Marketing research.
Service

PAPER AND BOARD
SECTOR
(LMC) Lahore 36
HR FUNCTIONS
A Packages limited view is that the strength of any organization lies in its people that work
for it. At the heart of their success lies in their commitment to equal opportunity, to a
performance culture and demonstrated performance. They continuously invest in their people
through training and development activities. Generally, university graduates are inducted by
Packages limited and given intensive in-house training. The process of grooming and training
is essential for comprehensive understanding of the function of the various departments.
HR department of Packages perform following functions:
Recruitment:
Packages has been very particular about recruitment of its employees. Their basic selection
criteria is based upon professional education as well as academics background.
Packages limited has designed a sound but easy method of recruitment. When any department
needs an employee, it sends its requirements to the Human Resource Department, which in
turn advertise the vacancy in the leading newspapers and asks for the qualified people. In case
of the posts requiring some years of experience, only interview method is used to select the
best candidates
Recruitment Programs
Packages has separate HR department that is held responsible for the recruitment of jobs,
subsequent department on their request are provided by suitable candidates through HR
department, a test is held which is based upon IQ test, aptitude test and of academics,
successful candidates are then screened through 3 interview, one by HR department, other by
the head of concerned department and final interview is the panel interview conducted by
head of board of selected people of various departments. Personal department known as
industrial relation department in packages limited, are held responsible for managing
recruitment for managing recruitment, record keeping of employees and all related industrial
affairs of the employees.
Recruitment of Employees
Minimum qualification for the post of the workers is Matriculation 2nd division with science
subjects. The workers should not be more than 21 years old and must be medically fit. These
University of Education |Page
PAPER AND BOARD
SECTOR
are employed as “Apprentice Trainee”. If the performance of the employee is satisfactory

during the probation period, he is hired. Normally workers get promotion after 2 years on the
recommendation of their supervisors. This post is not advertised.
Recruitment of Diploma Holders
Diploma holders in Electrical, Mechanical and instrument Engineering are also employed.
They are given a training of six months. They are employed for supervisory jobs.
Recruitment of Executives
In finance division, they normally require C.A, ACCA, ACMA, MBA, MCOM for respective
jobs according to their skills. As Packages has developed has developed one of the most
Expensive internal control systems, therefor to fill full requirements, highly qualified people
are required.
Training and Development
Appointed persons are trained for one year, they are given the title of “Management Trainee”.
In the industrial Marketing, the trainee is called “Sales Executives” and after one year they
are given the designation of “Assistant Manager Sales”
The trainee is given a brief view (orientation) of the company, various processes, roles and
regulations etc. This orientation may be from two weeks to two months. After the orientation,
the Participants may ask to submit short reports of presentation.
After a six-month training, the trainee goes to HR Manager and tells him what he has learnt
in this program. Some external courses may be offered not only to the existing employees but
also the new trainees. These courses are held in:
LUMS
PIM
Intek Solution
Packages recently has jointly entered diploma program with LUMS. It is 18 weeks’ program
called Diploma in Business Administration. Many sessions of this program have passed out
till.

PAPER AND BOARD
SECTOR
Performance and Appraisal
Performance and appraisal are two sides of a coin. Immediate officer appraises performance.
For the appraisal of the performance, there is a Performa, which is filled by immediate officer.
The Performa is named as (PPE) Performance Planning and Evaluation. There are seven
sections in this form. The particulars of the candidates are written on the top of the form.
Performance Plan
In this section, some standards and target along with time frame are given. The target given
in Packages Limited is known as “SMART”
S= Smart
M=Measurable
A=Attainable
R=Realistic
T=Time frame
Performance Evaluation
In this section, the net result of the standard and targets given in this section# 1 is evaluated
or checked. Whether the person can achieve the targets on the required time frame or not.
Competency Dimensions
In this section, different behavioral indicators, in accordance with the performance ae

checked.
STRENGTHS AND WEAKNESSES

Internal Strengths
Great diversification in products

Easy availability of local raw material (wheat straw and waste paper)
Strategy to maintain suppliers (strong relations with large pool of suppliers)
Large pool of distributers (211 distributers all over the country)

PAPER AND BOARD
SECTOR
Huge technological development

Strong R&D (34% investment is made in R&D)
Increment in local sales
Only large industry that is pioneer in packaging (Miner competition)
Specialized management personal and highly motivated staff. Sales staff spent 80% of
time in market and 20% in office.
Major Market share in tissue paper in which rose petal covers almost 75% of tissue
paper industry.
Long listed product line as compared to the competitors i.e. rose petal has 7 variants
only in facial tissues.
Internal Weaknesses
Business to Business industry (Do not have local dealer’s consumer market)
Highly paid sales, sometimes reluctant to attend small shops.
Soaring prices as compared to competitors.
Promotion process is very slow in organization.
Various kinds of smuggled tissues are affecting its local sales.
An increment of 35.95% in marketing and distribution costs tells that this huge
increment could be due to poor marketing and distribution efforts.
Decrease in exports sales of 4.44%.
10.41% increment in sales tax and excise duty could harm company’s operations by
affecting its product prices.
Low promotional activities through websites
No advertising is made through social media of even through T.V commercials.

PAPER AND BOARD
SECTOR
IFE MATRIX
Description W S WS
S S S
0.10 4 0.40
Strengths
0.06 3 0.18
• Great diversification in products
• Easy availability of local raw material (wheat
0.08 3 0.24
straw and waste paper)
• Large pool of distributers (211 distributers all over
0.05 4 0.20
the country)
0.07 4 0.28
• Huge technological development
• Strong R&D (34% investment is made in R&D)
0.06 3 0.18
• Increment in local sales
• Only large industry that is pioneer in packaging 0.05 3 0.15
(Miner competition)
• Specialized management personal and highly 0.03 3 0.09
motivated staff. Sales staff spent 80% of time in
market and 20% in office.
W
Weaknesses W W
0.10
• An increment in marketing and distribution costs 0.10 1
(of 35.95%). 0.08
• Decrease in exports sales of 4.44%. 0.08 1
• 10.41% increment in sales tax and excise duty could

0.18
harm company’s operations by affecting its product 0.09 2
prices.
• No major advertising is made through social media 0.12
0.06 2
even through T.V commercials.
0.08
• Promotion process is very slow in organization. 0.04 2
• Highly paid sales staff, sometimes reluctant to 0.05
0.05 1
attend small shops. 0.08
• Soaring prices as compared to competitors. 0.08 1
∑=1.00 2.41

PAPER AND BOARD
SECTOR
IE MATRIX
The EFE Matrix shows that the Packages limited company is having as well as enjoying
their stable position in the market. As they are going very well with stability approach.
They need to move on with the similar approach and just put their utmost focus on the
stability position.

Pacakges Project PDF

Transféré par

Informations du document

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Pacakges Project PDF

Transféré par

Droits d'auteur :

Formats disponibles

Building Blocks for a

MOHSAN MEHDI (20%) Value Chain Analysis

JUNAID SAFDAR (20%) Financial Ratios

University of Education (LMC) Lahore

“ Innovation Distinguishes Between

Push for Tenacity Ring in Our Ears.

to Innovate a Business Plan.

University of Education (LMC) Lahore

First, We Would Like to Thank Almighty Allah Who Provided Us Confidence,

in Future as We Are Nothing Without His Blessings.

Encourage Us throughout Our Life.

throughout our lives.

a lot to our knowledge.

University of Education (LMC) Lahore

INTERNAL ENVIRONMENT ..........................................................................................

University of Education (LMC) Lahore

University of Education (LMC) Lahore

University of Education (LMC) Lahore

PAPER AND PAPERBOARD INDUSTRY

technologies in manufacturing process as well as product innovation. In Pakistan, companies

by spending huge amount in R&D. If we talk about immaterial, organizational or soft

are required by the government to compete in the world market.

manufacturing and in the process creating millions of jobs.

University of Education (LMC) Lahore 1|Page

packaging materials to individuals and businesses world-wide. Our clientele includes

names reflect our forward-looking strategy of continuously improving customer value

through improvements in productivity.

paper and board manufacture.

Packages is an economically significant company.

University of Education (LMC) Lahore 2|Page

Company's efforts to remain abreast of improved technological developments in the

University of Education (LMC) Lahore 3|Page

Small Paper, Big Problem

University of Education (LMC) Lahore 4|Page

• Receipts waste one-billion gallons of water

Paper Is Big Business

Worldwide, deforestation is estimated to be responsible for about 12% of greenhouse gas

University of Education (LMC) Lahore 5|Page

Minimizing Paper Pollution

production plantations and attract mega investments in pulp and paper/paperboard

manufacturing and in the process creating millions of jobs.

Innovations as a global challenge

The Research and Development department at Packages is tirelessly working to understand

University of Education (LMC) Lahore 6|Page

down environmental changes.

implications have adverse effects as a whole.

Specifically, political factors include areas such as:

Obstacles from Government Side

• Tariff and local duties irregularity

University of Education (LMC) Lahore 7|Page

• Imposition of 15 percent excise duty

University of Education (LMC) Lahore 8|Page

Economic Environment Factors

• Devaluation of Money • Low income

University of Education 9|Page

Value of the dollar in the world market

Import and export factors

Monetary policy (Interest rates)

The number of marriages/Particular ceremonies

of the events prefers to make sure the usage of tissues.

University of Education (LMC) Lahore 11 | P a g e

Attitude toward Product quality

machinery, new 8-color Flexographic printing machinery.