Shamim & Co.

(Pvt) Ltd Multan

Shamim & Co. limited Multan

Submitted By:
Zafar Saleem
MB-08-64

Submitted To:

Madam Javeria Abass

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Acknowledgement
I pay special thanks to ALLAH Almighty who bestowed me the opportunity, courage
and confidence to obtain more knowledge to complete my internship program, which will
facilitate me greatly in my intellectual development and skills capitalization.

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

supported in every task of my life and my teachers, who really guided me to enhance my
learning in Shamim & Co. (Pvt) Ltd Multan.

I am also very thankful to Mr. Muhammad Afzal , Mr. Mansoor Ahmed, Mr.Khurram
Shahzad, Mr. Muhammad Tahir, Mr. Muhammad Tahir Ameen, Mr. Haider Ali Abidi,
who gave me very valuable knowledge about the workings in their respective
departments.

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Preface

Institute of Management sciences has its prime objective to develop trained managers by
offering them broad knowledge in a number of business areas and thus preparing
successful management careers. One step to achieve this objective for students is to
exercise internship program in any recognized organization. So this internship program
facilitate the students to gain some understanding of complete working of the
organization and at the same time enables the students to face challenges in their
professional life by sharpening their skills of decision making, leadership,
communication and team work.

Career Development Center in BZU Multan issued me letter for internship at “Shamim
& Co (Pvt) Ltd Multan”. I submitted letter in HRM office of Organization. After passing
the internship test I joined the organization on Monday 21st of June 2010. I completed
my six week internship from 21st of June to 31st of july 2010.

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Management of Shamim & CO.

It Includes:
Managing Director: Alamgeer Khan Tareen
GM Sales& Marketing: MR Amir Hameed
GM Production: MR Ijaz
GM Finance: MR Sohail Butt
Manager Managements Accounts: Mr Ch. TAHIR Ameen
Manager MIS: MR Rizwan Zafar
Manager HR.D: Miss. Parsa Habib
Manager Shipping: Mr Major Farrooq

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Organizational Structure
Managing
Direc tor

Manager S IS & General M anager

Res earc h Financ e

M anager Financ e M anager A cc ount

General M anager
General M anager
Sales
Tec hnical

Manager S al es &
Manager Manager Quality Marketing
Produc tion Control

General Manager
Operations

M anager
Manager A dm in
Pers onal

M anager
Shipping

Internship program

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During my six week internship program, I was moved through following departments:
1. Human Resource Department
2. Accounts Co-ordination Department
3. Supply chain Department
4. Managements Accounts Department
5. Finance Department
6. Audit Department

HUMAN RESOURCE DEVELOPMENT

My 1st week was in Human Resource Department. This department deals mainly with a
significant asset of the organization namely human resource. Miss Parsa Habib is
manager of this department. Mr. Muhammad Afzal and Mr. Muhammad Tahir are
coordinating her.
Human Resource department is one of most important part of any organization which
performs the activities for staffing the organization and sustaining high employee
performance. The Human Resource mfg. process is as follow.

Recruitment procedure

Major sources of potential job candidates are

 Internal Search Advertisement

 Employees Referrals
 School placement
 Selection devices used for selection of graduates, masters & MBSs are
 Application form written tests (English, Math, business/Engineering essay)

 Interviews for worker level job where qualification and skill requirement is low, this
formal procedure is not adopted rather candidates abilities are fledged by department

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head and sent to factory manager for approval. Orientation is the introduction of new
into his or her job & the organization. This is for few selected persons in NBC
training is generally on the job employees in all departments are bearing by the time
or with the help of seniors.
 The organization provides compensation benefits to its employees such as:

 Accommodation
 Holidays
 14 Annual
 10 Casual
 16 Medical with 112 pay. Annual pay
 increment & bonus.
 Medical facility
 Mess
 Time office maintains personal file of each employee, daily attendance, leaves,
incentives & commission etc., job descriptions and organizational charth are available
for all employees. Employees are rotated from one department/post to other on
request or when required. Payroll system.

Recruitment Process

After collection of CVs a test is conducted. For all four levels there are different types of
tests available. If the applicant passes the test then a realistic job preview is done. In
which the applicant is shown the job environment and responsibilities.
After the RJP further interviews are collected.
The manager of HR takes 1st interview. It is an unstructured type of interview. The
manager of respected department takes 2nd interview. This is a structured interview.
After this GM and a panel of mangers take a 3rd interview. This interview is optional.
Sometime it is taken and sometime not. It depends upon the level of job.
Final Selection:

After clearing all interviews final selection is made.

Placement:
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Then employee is placed on his job.

Specifying jobs and roles:

When the new employees are hired the HR department specifies the job and the role of
the new employee in the organization, which he will play in the future. In other words job
specification and HR department does job description

Training:

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

Evaluation:
Evaluation of employees is done by using software. This software helps the HR
department in evaluation of employees. Evaluation is done on monthly basis.

Feed Back:
For feed back company uses the 360 degree rule. This enables the HR department to get
feed back from every level and every side. Further feed back is provided and received by
each employee.

Career development
Career development is the important function of the HR department because all the
training programs are initiated by this department and therefore it plays a vital role in
career development.

Outsourcing:
HR department also outsource employees which are above manager level. For this
purpose this department gets services of a recruiting agency named “Abacus Recruiting

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

Preventing violence in the workplace:

Due to the good policies of the Shamim & Co. there are no unions and the HR
department is providing the peaceful working environment to the employees by
preventing the violence.

Ensuring safety at the workplace

Providing safe working environment to the employees in the responsibility of the HR
department and it has a check over it. Particularly employee's safety is ensured in the
production department in order to avoid the loss.

Transfer and promotions

All the transfer and promotion decisions are made by the HR department. But in case of
senior manager a meeting is conducted and the decision is made whether to promote or
not.

My activities in HR department
I worked with Mr. Afzal and Mr. Tahir in this department. They helped me out to learn,
how they select and hire new employees. I also learnt how they are managing all
departments.

Accounts coordination department

My 2nd week was in the accounts coordination department.
.
Mr. Khuram Shahzad is assigned the task of payment to supplier, others department
and employees.
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Function of department:
 This department is basically a service department.
 The goal of the department is to make the payment of payable to supplier and
others timely through a proper channel.
 Supplier submits its Bill to respective department and that department sends it to
Account Co-Ordination department.
 This department verified each bill and cross checking is made with account
department.
Mr. Khurm Shazad and Mr. Abdurehman look after the production budget.
For production budget the main concern is the machinery maintenance. Because a
working machinery is very much important for production. These includes
• Daily/Routine maintenance budget
• Seasonal/Annual maintenance budget
• New machinery budget
Mr. Haider Shah and Mr. Nauman are concerning with the sales budget.
This budget includes
• Publicity budget ( Banners, posters, gift, paint)
• TA ( Traveling Allowance)
• DA ( Daily Allowance )
• TOT ( Tools of Trade)
• Department expenditure
• Insurance Payment

In the beginning large budget is approved from the Managing Director Alamgeer Khan
Tareen. These payments subtracted from annual expenditure and production budget.
Purpose of department:
 Bill delivery and receiving timing is noted.
 Provide help to every department through one window operation in accounts.
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 Every department has a Co-Coordinator who looks after all the payment of that
department.
 Make payment through cash if amount is less than 10,000 Rs and more than
payment is made through cheque.
 In case of any problem and error
 The issue is discussed with the GM Finance Sohail Butt

My activities in accounts coordination department

Mr. Khurram Shahzad and his team cooperated with me very much. I worked mostly with
Mr. Haider Ali Abidi. I learnt there how to give exclusive rights to their distributors. How
they do make agreements with them. I learnt how they maintain records of production
budget and sales budget etc.

Supply chain department

My 3rd week was in Supply chain department. This department is working under the
supervision of Mr. Abdul Qadir
Assistant Manager of Supply Chain.
Function of department:
Mr.AbdulQadir looks after the procurement of raw material.
These raw material include
 Labels
 Plastic Bottles
 Glass Bottles
 Glue
 Pallets and shells
 Cartons
 Layer Pad

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 Case Pad
 Crowns
 Caps
 Preform
 CO2
 Shrink and stretch sheet

Function of department:
 Make the timely availability of raw material purpose.
 Make the timely payment to supplier.
 Build good links with the supplier.
 Planning of future raw material.
 Availability of raw material for future at least 1 month.
 Future target is set like Initial+ X% Growth.

Purpose of Supply Chain Department:

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

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

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

• Mr. Abdul Qadir is very good planner.

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

o Cash flow.
o Required raw material quantity.

Management accounts department

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My 4th week was in the management accounts department. This department is working
very efficiently under the leadership of Mr. Asim. He is the manager of this department.
This department is very well established and having devoted workers.
Function of this department:
• This department prepares almost more than 57 reports.
• Receive data from different department to prepare these reports like shipping,
production, MIS.
• These reports are send to MD (Managing Director), GM Sales and GM Finance
etc to evaluate the performance.
• While making these reports they convert all brands into standard 250ML.
Reports prepared by this department:

Shipping department:
 Daily load comparison report
 Filled stock position
 Through put report
 Amanat comparison report
 FIFO Implementation
Production Reports:
 Daily raw material reports
 Daily CO2 Comparison report
 Plant wise yield report
 Daily shift wise yield report
 Daily 250ML Production losses
 Batch Consumption Report
General Reports:

 Labor cost tracking report

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 Daily permanent staff overtime

 Diesel consumption and comparative summaries

My activities in management accounts department

I worked with them to prepare many reports which are prepared on daily and shift wise
basis. For example these reports include daily losses reports, daily yield reports etc. I
learnt how to calculate the stock, How the measure the quantity which is loaded out.

Finance department

My 5th week was in the finance department. This department is under the
supervision of Mr. Shoaib Tirmazi. This department looks after the insurance of
all the Assets of Organization. Leasing like direct leasing and sales and lease
back.
Letter of credit like Irrecoverable LC and Irrecoverable and Confirmed LC.
Clearance of shipment is also comes under this department. Short term and long
term financing too.
This is one of the most important departments of this organization. This
department made the financial plans of the organization, they analyze their
resources and then concise other reports and gives the whole budget the
organization can afford. Another job of this department is to make the complete
record all financial and non-financial transactions made inside as well as outside
the organization

Functions of Finance department

Insurance of Shamim & Co. (Pvt) Ltd Multan.

 Insurance of all the assets of Shamim & Co. (Pvt) Ltd Multan.
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 These assets includes
o Machinery
o Building
o Stock ( Empty & Liquid )

Leasing:

There are two type of leasing

• Direct leasing

• Sales and lease back

Direct leasing:
Suppose you want to buy a new asset (Machinery). You go to bank ask
him to purchase on the behalf of you and bank make the payment. You take that asset
from bank on lease. You make the payment to bank in Installment with mark up. At the
end asset will be your when you pay all the installment of that Machinery.

Sales and Lease back:

You sale your working asset to bank when you need short/long
term finance to fulfill your operating expense or any of the others. You have to make the
payment to bank in installment with mark up/interest. After the complete payment assets
again come under the organization ownership.

Letter of Credit:

There are many types of Letter of Credit

• Irrevocable Letter of Credit
• Revocable Letter of Credit
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• Irrevocable and Confirmed Letter of Credit
• Confirmed Letter of Credit
• Un-Confirmed Letter of Credit

Modes of payment:
 By Sight Payment
 By Acceptance
 By Negotiation
 By deferred payment

BY SIGHT PAYMENT:
• When shipment is delivered to buyer
• Supplier submit complete documentation to bank
• Bank inform the buyer through the letter or simply calling it
• Then buyer has to make the payment to beneficiaries

Document Delivered Against Acceptance (DDAA OR DD):

• Bills of exchange are used and organization gives acceptance for this.
• Buyer has to make the payment after receiving the whole shipment after the date
of Truck receiving in 180-days.
LC Procedure:

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

• Only difference between local and foreign LC is that for foreign LC Import Form
or Export Form is submitted by bank to State Bank of Pakistan while in local it’s
not submitted.
• In Import/Export Form detail of goods, quantity and prices are mentioned.
• Organization want to buy raw material, machinery etc from supplier

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• Organization contact the supplier
• Supplier send detail of requirement with the rates
• Supplier demand for letter of credit
• Buyer sends a request to its bank along with the detail document of buying
material, quantity and price.
• Bank make the letter of credit
• Send it to buyer and seller

Shipment Clearance procedure:

For clearance original document are require. These document include
 Commercial Invoice
 Air Way bill or bill of lading
 Packing list
• For clearance purpose organization higher an Agent.
• Agent go to custom house and told them that he be authorized by part
• Show them the original document.
• After this there are some duties and charges on shipment like
• Custom duty
• Excise duty
• Delivery order charges
• Port charges(by sea)
• Air port charges(by air) good own rent
• Agent own service charges
Then Agent sends detail of charges for each above. Organization makes the draft for each
according to Agent. Confirmation for each is received from Agent that all payment is
made truthfully. Foreign companies have their Agent in Pak (Karachi etc).
Debt Advice:
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• Organization has cash balance with bank
• Bank send daily report of debt advice
• Suppose payment is made to supplier

My activities in finance department

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

Applications of classroom learning in the organization

I applied different concepts, which I learnt in my classes. For example
• Hiring and selection
• Interviewing new employees
• Supply and distribution channels
• Customer relationship
• Planning
• Leading
• Controlling
• Marketing
• Promotion

Audit department
My 6th week was in the “Audit Department” of “Shamim & CO (Pvt) Ltd Multan” This
department audits the empty Glass bottles, empty shells, Pallets on daily, weekly and
monthly basis. The department also control and maintain the record of “Khanpur Depot”.
This department is interlinked with the Management Account.

Function of Department:

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• There are two types of empty in factory.
• Production empty at factory
• Shipping empty at factory
• In this department
• Audit of MIS department (Mela credit, Liquid Credit, Contingency short/excess
reports).
• Audit of empty Glass bottles, empty shells, Pallets on daily and monthly basis.
• They daily verified the empty of shipping and production department.
• Verification of empty stock and liquid filled stock is also made.
• The department also control and maintain the record of “ Khanpur Depot”
• Daily reporting of sale, cash and expense are made.
Purpose of Audit Department:

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

• Accurately verified the empty of shipping and production.
• Check whether empty is short and excess.
• Daily report are made and matched with the production and shipping department.
• Plastic shell, Pallets verification are also made regularly
• Verification of empty of different depot.

My activities in Audit department

I worked in department to audit empty glass bottles. I learnt how they audit different
departments and maintain records.

What I learnt in the organization

During my internship program I learnt a lot. For example
• How to deal with seniors and subordinates
• How to communicate with others

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• Discipline
• Punctuality
• How to lead my subordinates
• How to maintain different records

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Financial Analysis

LIQUIDITY RATIO’S:
These ratios are important in measuring the ability of a company to meet both its short
term and long term obligations.
Working Capital:
Working capital is an indication of the short – run solvency of business
Working Capital = C.A – C.L.

Year 2005 2006 2007 2008 2009

CA 34317964 390387892 468465470 562158564 674590277
0
CL 28025363 326286103 375229018 431513371 496240376
5
Working Capital 62926005 64101789 93236452 130645193 178349901

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

C. A
Current Ratio = C. L

Years 2005 2006 2007 2008 2009

CA 343179640 390387892 468465470 562158564 674590277
CL 280253635 326286103 375229018 431513371 496240376
Current Ratio 1.2 1.2 1.25 1.30 1.36

ACID- TEST RATIO:

This ratio is like the current ratio but excludes current assets such as inventories and
prepaid expenses that may be difficult to quickly convert into cash.

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Quick Ratio=Quick Assets / Current Liabilities

Years 2005 2006 2007 2008 2009

CA 42218250 49449960 57856450 67692050 79876619

CL 280253635 326286103 375229018 431513371 496240376

Q Ratio 0.15064301 0.151554 0.1541897 0.15687127 0.16096356

DEBT MANAGEMENT:
This is the most common measure of the ability of a firm’s operations to provide
protection to the long-term creditor.

TIME INTEREST EARNED:

TIE = EBIT /INTEREST EXPENSE

YEAR 2005 2006 2007 2008 2009

EBIT 13130022 15544100 18432038 21643604 25539453
Interest Exp 1644312 1061878 1536003 1812483 2138730
TIE 8 15 12 11 12

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

YEAR 2005 2006 2007 2008 2009

TD 281275235 327307703 376403858 432864437 497794102
TA 385165619 439795604 527754820 633305785 759966942

Debt
Ratio 73% 74% 71% 68% 65%

D/E RATIO:

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This ratio indicates the extent to which debt is covered by shareholders’ funds. It reflects
the relative position of the equity holders and the lenders and indicates the company’s
policy on the mix of capital funds.
D/E = TD / TE

YEAR 2005 2006 2007 2008 2009

TD 281275235 327307703 376403858 432864437 497794102
CE 103890384 112487901 151350962 200441348 262172840

D/E 2.71 2.9 2.5 2.2 1.9

ASSET MANAGEMETNT:
These ratios are important in measuring the efficiency of a company

1. Days sales in receivable:

Shows both the average time it takes to turn the receivables into cash and the age, in
terms of days, of a company's accounts receivable

Gross Re ceivables
Days sales in receivable = Net Sales / 365

YEAR 2005 2006 2007 2008 2009

A/R 16881442 15527617 20156759 23180273 26657334
Sales 849952926 885258201 1062309841 1274771809 1529726171
DSO 7 6 7 7 6

TOTAL ASSET TURNOVER:

A company's effectiveness in generating sales revenue from investments back into the
company. The higher the Total Asset Turnover is the more effective use of the company's
investments. Total Asset Turnover can be very useful if you watch what actually makes
up the Total Assets of the company. A company with low inventory and strict credit
policies to keep Accounts Receivable low will help the Total Asset Turnover look even
better. Of course it depends on all of the company's Total Assets.

TAT = SALE / TA

YEAR 2005 2006 2007 2008 2009

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Sales 849952926 885258201 1062309841 1274771809 1529726171
TA 385165619 439795604 527754820 633305785 759966942
TAT 2.21 2 2 2 2
Inventory Turnover:

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

Inventory turnover: Cost of goods sold/ Average Inventory

YEAR 2005 2006 2007 2008 2009

CGS 587227740 644574970 741261215 852450397 980317957
A Inventory 300961390 340937931 388669241 443082935 505114546
ITO 2 1.9 1.9 1.92 1.94

PROFITABILITY RATIO’S:

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

profits on the Investment that it has made in the business. If a business is liquid and
efficient it should also be Profitable. Ability to provide financial rewards sufficient to
attract and retain financing.

RETURN ON EQUITY (ROE):

The Return on Equity of a company measures the ability of the management of the
company to generate adequate returns for the capital invested by the owners of a
company. Generally a return of 10% would be desirable to provide dividends to owners
and have funds for future growth of the company

ROE = N.I / C.E

YEAR 2005 2006 2007 2008 2009

NI 11485710 14482222 18102777 22628471 28285589
CE 103890384 112487901 151350962 200441348 262172840
ROE 11% 13% 12% 11% 11%

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RETURN ON ASSET’S:

The Return on Assets of a company determines its ability to utilize the Assets employed
in the company efficiently and effectively to earn a good return. The ratio measures the
percentage of profits earned per dollar of Asset and thus is a measure of efficiency of the
company in generating profits on its Assets.

ROA= N.I / TA

YEAR 2005 2006 2007 2008 2009

NI 11485710 14482222 18102777 22628471 28285589
TA 385165619 439795604 527754820 633305785 759966942
ROA 3% 3.30% 3.40% 3.60% 4%

NET PROFIT MARGIN:

The Profit Margin of a company determines its ability to withstand competition and
adverse conditions like rising costs, falling prices or declining sales in the future. The
ratio measures the percentage of profits earned per dollar of sales and thus is a measure of
efficiency of the company.

NPM = NI /SALE

YEAR 2005 2006 2007 2008 2009

NI 11485710 14482222 18102777 22628471 28285589
Sales 849952926 885258201 1062309841 1274771809 1529726171
NPM 1.35% 1.64% 1.70% 1.80% 1.85%

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VERTICAL ANALYSIS (COMMON SIZE ANALYSIS

Common-size Analysis Amount

Percent = Base Amount × 100%

Financial Statement Base Amount

Financial Statement Base Amount
Balance Sheet Total Assets
Balance Sheet Total Assets
Income Statement Revenues
Income Statement Revenues

From vertical of Shamim&Co (Pvt) Ltd Multan I have concluded that the
performance of Organization is good from previous five years. In the vertical analysis I
have calculated the values of all items of Balance Sheet and income Statement in
percentage with respect to the sales and total assets. From these calculations I come to
know that the Current Assets and fixed asset are increased in every next year.

Shamim&Co (Pvt) Ltd Multan Operating Income is increasing and Net Income
increasing in the every next month as total percentage of sales. Shamim&Co (Pvt) Ltd
Multan is able to receive its receivable on time due to which it receiving cash time by
time and able to pay back to its creditors on time. It means its average collection period
as well as the average payment period of the firm are good.

On the basis of my conclusion I can say that the overall performance of Shamim&Co
(Pvt) Ltd Multan is good from previous five years

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Horizontal Analysis

Time
The term horizontal analysis arises from left-to-
right (or right-to-left) movement of our eyes as
we review comparative financial statements
across time.

From horizontal analysis of the Shamim&Co (Pvt) Ltd Multan I have concluded that
over all performance of the firm from previous five years is very good. From the last five
years its profit is increasing. Organization focusing on expansion in the last 3years as a
result of expansion its Fixed Assets 2008 increased by 35% and in 2009 increased by
60%.
Similarly current asset were also increased 20-25% in 2007, 2008 and 2009. But relative
to this its current liabilities increased less. So, it had enough working capital to which
was enough for solvency of organization. In 2005, 2006, 2007 Common Equity increased
while purchasing Fixed Assets.
Shamim&Co (Pvt) Ltd Multan its assets efficiently as result of this generating more
profit. So, we can say the performance of fixed asset is up to standard. Profit of
Shamim&Co (Pvt) Ltd Multan is also increasing 2005,2006,2007,2008 and 2009.

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PEST Analysis
The PEST analysis examines changes in a marketplace caused by the following factors.
 Political Factors
 Economical Factors
 Social Factors
 Technological Factors

POLITICAL FACTORS:

In Asia and especially in Pakistan where the political environment is not stable no
Government has completed its tenure except the last and the politics also a great
influencer on the different industries of the country. Now following are the effects on the
beverages industry.
• The govt. decides that what will be the rates of sales tax
• The rates of main operating variables inputs such as the Electricity are also
decided by the govt.

ECONOMICAL FACTORS:
The country like Pakistan whose economy is not strong enough is affected by so many
economic variables which are the following.
• Low literacy rate is a problem due to which rural customers are not able to
differentiate between PEPSI and Coke and etc.
• Employment opportunities will be higher.
• Increasing demand of PEPSI requires establishment of new production plants.
• Combined pricing decisions with mutual agreement between PEPSI and Coke.

SOCIAL FACTORS: The social factors of each society and culture are
different from each other so these also influence the industries as well.
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• Now it has become a trend that soft drink should be served in almost every
gathering.
• Fast food popularity among teenagers has led to the increase in demand of PEPSI.
• Social welfare program is also active at PEPSI for example PEPSI donated 1
million Rs. For helping recent earth quake victims.
• They have been sponsoring different cricket events and Pakistan cricket team for
almost 10 to15 years.
•

TECHNOLOGICAL FACTORS:
Today is the era of Technology whether it is Information Technology or Production
Technology so the PEPSI is also affected by these. Following are some of these.
• Previously there were separate production plants for the production of specific
brand size.
• Now they have installed a new production plant which is capable of producing
different brand sizes at the same time.
• The plant which they installed at the time of establishment has now been
grounded.
• The sixth production plant which is currently being installed is imported from
Germany.
• The seventh production plant which is currently being installed is the latest that is
imported from Italy.
• There is no institute in Pakistan providing engineering training regarding
beverages production plants so PEPSI people have to arrange onsite training for
its maintenance engineers to learn working with latest technology plants

• There is very limited automation to keep production record. Most of the record is
maintained manually but currently they are trying to shift towards fully automated
production control system.

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SWOT Analysis
STRENGTHS:

• High brand image and customer loyalty

• Pepsi is currently the market leader with more than 82% of market share
• Inspection of quality is regularly performed by Country Office to insure
consistent quality products.
• Effective and efficient management of distribution channel allows Pepsi Multan
to cover a huge geographical area.
• On site training of 4 to 6 months enables plant engineers to manage plant
operations effectively so that machine downtime is reduced to minimal.
• Very huge production capacity 500,000 per day.
• Pepsi provides its own transport to distributors to cover those geographical areas
where competitors are not distributing their products because of difficulties to
reach there.
• Suppliers are bound to supply material on the terms and conditions specified by
PEPSI
• Strong coordination between different departments
• They have their own R&D department which is responsible for conducting market
research
• They are proactive in their competitive strategies.
• They are having more than one supplier for a particular material to avoid stock
outs in case of high demand or supplier’s inability to ship material.
• Daily revision of production schedule based on daily demand.
• They are financially very strong and require no financial help from country office
• Their plants are capable of producing round the clock.

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• They offer attractive margins to the distributors, so distributors are willing to
carry PEPSI brands
• They have a recovery department which is responsible for the collection of bad
debts and identifying sales of low graded PEPSI.

Weaknesses:
• Poor feed back from employees

• Insufficient salaries

• Monopoly of distributors cause harm to company

• Loading and unloading of trucks can take place only in the night because of the
law permitting trucks to enter into urban areas only in the night.
• Factory is located in the residential areas with no proper parking arrangements for
its vehicles.
• No involvement of lower level subordinates in decision making.

Opportunities:
• Because of high customer loyalty and brand image new brands can gain customer
preference very soon.
• There is high market growth opportunity
• Country office is responsible for national add campaigns which facilitate PEPSI
Multan to enjoy the benefits of integrated advertisements.

• New brand introduction

• Low cost skilled person availability

• Strong consumer commitment with Pepsi.

Threats:

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

• Amrat and Makka cola also trying to get market share

• Changes in consumer purchasing power
• Increase in competition
• Inflation
• Due to blame of religious group
• No proper employee’s orientation programs

Suggestions
On the basis of SWOT analysis I observed that shamim & Co. Multan is working in a
very well manner. But I think they are lagging in some areas. So they need to
improvement in some aeas. I have following suggestions to cope with their weakness and
threats and take competitive advantage of theor strengths and opportunities.
• Taste
As the climate of Pakistan particularly Multan is very hot. The people were like sweet
soft drinks as that of Coca-Cola. So there is a need to have slightly sweet drinks.

• Promotional Schemes
Most o schemes introduce by the Pepsi cola are standardized for all the regions. But the
organization should recognize the differences in different regions and then launch the
schemes to get feedback.

• Rules & Regulation

Implementation of rules should be make sure in the organization at any cost. Some
policies need to be redefined.

• Islamic Activities

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There is the perception that Pepsi cola is the Jewish company and it facilitates Israel. The
people who believes & don’t like to drink. So it can be reduce by adding Islamic valued
in the promotional campaigns.

• Motivation
The employees should be motivated to be loyal with the organization. It can be in the
form of incentives and free sampling.
• Online Linkage
All the plants and distributors should be online to increase efficiency.

Conclusion:

 Shamim&Co showing profits since last 5years and according to it’s annul reports
its profit is increasing.
 Shamim&Co having 85%market share currently and market leader in Multan.
 Shamim&Co focusing on continuous expansion especially in fixed assets like
building and installing plant.
 The purpose of expansion is to increase its share.
 Committed staff is the main reason that it captures more than 85% share of market
share.
 A very well-establish distribution network covering whole of the franchise areas.
 Company has invested too much money in shape of coolers, visi coolers, counters
and cabin.

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References

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

www.google.com

www.SCL.com.pk

www.pepsi.com

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