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At the end of my six weeks internship program at Pakistan Tobacco Company
Jhelum Factory, I have compiled this report that includes the company’s detail and all the
activities in which I had been involved during my internship period.
The first project that was assigned to me was to design a template of leave
entitlement on Ms-Excel. It involved detailed study of different kind of leaves along with
its period and payment procedure. While going through this project I learned about
different payment formulas, accumulation, conversion, its encashment and the conditions
applied on it.
My second project was to do the Record Management of all the BSO’s at PTC JF.
First I studied in detail the record management procedures and policies and then I
managed around 50 files according to the checklist given to me. I observed various
documents like interview assessment forms, approval forms, application forms, STEP
form which is basically the appraisal form etc. This helped me in understanding their
various procedures and policies of HR.
The third project was to conduct training on Occupational Safety. This training
was supposed to be given to food handlers which covered environmental, health and
safety issues. I designed the whole training and made the presentation but due to some
reasons it was delayed and I was not able to conduct that training.
AKNOWLEDGEMENT
Firstly I would like to thank Allah Almighty who gave me the opportunity to work
in a professional environment and who always blessed me with countless favors.
Next I would thank my parents who were always there to hold my hand whenever I
fell. Truly they are the one who filled me with confidence with their words of
encouragement which made me feel that I can do even the impossible. I sincerely believe
that it is because of their prayers and support that I reached here.
I would like to thank my teachers who cultivated in me those seeds that really
proved fruitful for me. They were the one who illuminated my life with their teachings
and through their guidance.
I would specially thank sir Aqil, and Miss Samia who provided me with an
environment in which I could learn and freely discuss the issues I had during my period
of internship.
Finally all those people who made my internship a pleasant memory that I would
never forget.
Table of Contents
Chapter #1
Introduction:
1.1. Background of the study1.2. Purpose of the study1.3. Scope of study1.4. Methodology used in the study
Chapter # 2
History of the organization:
2.1. Introduction of the organization2.2. Company Background3.3. Vision and Mission of the organization3.4. Strategic objectives
Chapter # 3
Organization Structure and Management Review:
3.1. Organizational chart3.2. Structure of organization
Chapter # 4
SWOT analysis:
4.1. Strength4.2. Weaknesses4.3. Opportunities4.4. Threats
Chapter # 5
Analysis:
5.1. Financial Analysis5.2. Operational Analysis5.3. Environmental Analysis5.4. Competitor Analysis5.5. Technology Analysis
Chapter # 6
Human Resource Assessment:
6.1. Human Resource Department introduction6.2. Dimensions of HR6.3. Classification of workers6.4. Areas covered by Human Resource Department
Recruitment and selection Training and Development Promotion Transfers Welfare Activities Health Aids Preparation of ID cards Internship Handling Industrial Relation Mutual Industrial Issues Voluntarily Separation Scheme (VSS)
Chapter # 7
Solution:
7.1. Conclusion7.2. Limitations7.3. Recommendations
Chapter #1
1.1 BACKGROUND OF STUDY
Bahria University requires its student of business administration to undergo six to
eight-weeks internship programme. Selection of organization depends upon the
interest of the student as well as the field of specialization. This six week practical
experience is then documented in the written form known as “Internship Report”
which is based on theoretical and practical learning of the internee. To-Day
professional fields are becoming more and more challenging. To survive and get
success in any field, you should have the deep knowledge and appropriate skills of
the concern field. In fact this is very true about the field of management studies.
Knowledge and skills of a person can be polished, if he goes through some
practical experiences. Internship provides an excellent opportunity to students of
professional field especially management studies, to polish their skills and concrete
their theoretical knowledge. Student gets the opportunity to match their knowledge
with the actual happening of the fields.
Internship program is the exposure for the students to the real working condition,
and the chance to learn the practical work and know about the culture, working
conditions, processes, and procedures of an organization to fulfill the demand of a
job. All these things are very important for the student to pursue a good career.
1.2 PURPOSE OF THE STUDY
The purpose of the report is to study the management practices, processes and
procedures followed by PTC. The study is intended to analyze PTC in terms of its
strength and weaknesses. The report also discusses the financial position of the
company. The SWOT analysis is done with recommendations and suggestions.
1.3 SCOPE OF THE STUDY
The reader can have a brief introduction to the PTC Jhelum Factory form this
report. It encompasses the various departments of JF, their processes and
procedures, and the various human resources policies adopted by PTC. It also
encompasses the SWOT analysis of the company, and recommendations.
1.4 METHODOLOGY OF RESEARCH
The method for data collection is central theme of the study. No study is completed
without using the scientific and systematic ways to get latest knowledge about the
study. So the methodology for data collection is based on the traditional categories
i.e.
1. Primary Data Collection 2. Secondary Data Collection
PRIMARY DATA COLLECTION
In primary data collection I used the techniques of: 1) Personal observation. 2) Briefing and discussion during the internship with BSO’s and MTO’s
departments.3) Unstructured interview technique is also used when I faced any problem
during work.
SECONDARY DATA COLLECTION In secondary data collection method I get information from:
1) Annual reports of different years. 2) Brochures for information to customers.3) Inter organization memos.
CHAPTER – 2HISTORY OF THE ORGANIZATION
2.1 INTRODUCTION TO THE ORGANIZATION
The business of British American Tobacco was originally established in 1902,
when- to end an intense trade war. The Imperial Tobacco Company of the United
Kingdom and the American Tobacco Company of the United States agreed to form
a joint venture, the ‘British-American Tobacco Company Limited’.
The BAT business began life in countries as diverse as Canada, China, Japan,
Denmark, Germany, New Zealand, South Africa and Australia – but not the UK or
the USA. By 1910, its operations had extended to the West Indies, India, Ceylon
(now Sri Lanka). East Africa, Java, Malaya (now Malaysia) and Nigeria. BAT
listed on the London Stock Exchange in 1912 and British investors acquired most
of its American parent’s shares.
BAT held strong market positions around the world and had leadership in more
then 50 markets. Since 1994, the group has grown global market share from 10.7
percent to over 15 percent. BAT has 86 factories in 64 countries. BAT uses more
than 700 million kilos of tobacco and has 25 leaf growing projects and 23 leaf
processing plants, with over 300 brands in BAT portfolio and a market share of 15
percent, make the cigarette chosen by one in seven of the world’s one billion adult
smokers. BAT differentiated portfolio of brands included well established
international brands such as Lucky Strike, Kent, Dunhill, Benson & Hedges, 555,
Viceroy, Pall Mall. John Player Gold Leaf (JPGL). BAT is the second largest
quoted tobacco group with annual shipment of more than 800 billion cigarettes.
2.2 PAKISTAN TOBACCO COMPANY BACKGROUND
Pakistan Tobacco Company is the first-multinational company of Pakistan and
recently completed 64 years of its operations in the country. The company is the
member of the multinational British American Tobacco group.
History of Pakistan Tobacco Company:
Pakistan Tobacco Company is the member of the multinational British American
Tobacco group (BAT). In Pakistan, BAT carries out its business under the name of
“PAKISTAN TOBACCO COMPANY” (PTC). Pakistan Tobacco Company is the
first-multinational company of Pakistan PTC was incorporated in Pakistan and is
listed on the three stock exchanges of the country. It was established in the same
year when Pakistan took its birth in 1947, and took over the business of Imperial
Tobacco Company (India). It had three branches – Karachi, Jehlum and Akora
Khattak, but Karachi factory however has been closed since 1992 due to heavy
losses and some other reasons.
The first plant was set in a warehouse in Karachi port with monthly production of
30 million cigarettes against sales of 60 million, the gaps being filled up by import.
When Pakistan came into being all tobacco was imported in for production of
cigarettes. But in 1952, a development project was initiated in N.W.F.P. and the
top quality American Tobacco found way to Pakistan.
A factory was established in 1955 at Jehlum, and PTC became a Public Limited
Company in the same year. Pakistan Tobacco Company has divided the whole
country into 5 regions (Central Punjab, Southern Punjab, Northern Region, Lower
Sindh and Upper Sindh). Within each region, there are four to six areas, and each
area is further sub-divided into direct delivery and wholesale. In total, the company
has five regions, 22 areas, 355 distributors and 12 area warehouses.
2.3 VISION AND MISSION STATEMENT OF PAKISTAN TOBACCO COMPNAY
VISION:1st choice
ForEveryone
MISSION STATEMENT:
“Transform PTC to perform with the speed, flexibility and enterprising spriteOf an innovation, consumer-focused company”
2.4 STRATEGIC OBJECTIVES
Our strategy reflects our vision, being the champions of growth,Productivity, Responsibility and the wining organization.
CHAPTER # 3
ORGANIZATION STRUCTURE AND MANGEMANT
REVIEW
3.1: ORGANIZATION CHART
3.2 STRUCTURE OF ORGANIZATION
DEPARTMENTS
Pakistan Tobacco Company houses eleven departments in all including those
involved in direct manufacturing e.g. PMD and SMD, as well as supporting
departments like IT and Security. Roles and responsibilities of each department are
discussed as follows:
PRIMARY MANUFACTURING DEPARTMENT (PMD)
Responsible for,
Lamina Conditioning, Cutting and Drying
Stem Conditioning, Cutting and Drying
Cut Tabocco Storage (CTS)
Converting bale of tobacco into blend
Adjusting moisture level in tobacco
Treating both stem and lamina of tobacco
Flavor mixing and preparing Cut tobacco
SECONDARY MANUFACTURING DEPARTMENT (SMD)
Responsible for,
Cigarette making
- Taking tobacco from PMD and converting it into cigarettes with the help
of multiple machines having different capacities
- Materials used include filter rods, tipping paper, cigarette paper etc.
- Also responsible for regular maintenance of machines including weekly
service and handling during breakdowns.
Cigarette packing
- Taking cigarettes from making department and then converting them into
packets
- These packets are then put into outers and then finally packed in cartons
known as CBCs
- These CBCs are then transferred to shipping godowns
FINANCE
Responsible for,
Handling wages of workers & contractors
Analyzing manufacturing cost including direct & in-direct costs.
Book keeping section
Cash Section
General Ledger
HUMAN RESOURCE
Responsible for,
Maintain industrial relation between employees and workers
Maintain worker services record
Worker training and promotion
Worker welfare activity
Legal obligation on behalf of workers and management
ENGINEERING
Responsible for,
Responsible for keeping a stock of machines parts
Maintaining a Goods Receiving Register for keeping a track of goods
received
Ensuring that all machines are in working condition
Providing engineering supports functions that are required in
manufacturing departments
QUALITY ASSURANCE DEPARTMENT
Responsible for,
Consistent monitoring of product and services to meet the quality standards
set by BAT
Monthly quality briefings
Introduction of ever-improving quality standards through programs that
enable employees to do their job first time every time
INFORMATION TECHNOLOGY (IT)
Responsible for,
Handling internet access provision
Providing users with access to various softwares and platforms such as
Lotus Notes and SAP etc.
Providing employees with company email addresses.
Ensuring a sound and robust networking system in whole plant
Serving as support team for trouble shooting of computer systems
TRAINING
Responsible for,
Conducting trainings of employees in order to keep them abreast with latest
innovations in industry
Executing Training Need Analysis and Specialized Needs Assessment and
allotting trainings in required areas of improvement
ENVIRONMENTAL HEALTH & SAFETY (EH&S)
Responsible for,
Providing and maintaining healthy and safe working environment including
use of cleaner technologies and safer working system.
Complying with all the applicable national and BAT laws and regulations
pertaining to environment health and safety.
Analyzing impact of its activities on its surroundings and working personnel
SECURITY
Responsible for,
Ensuring safety of company’s property, assets and personnel on factory
premises
Providing a congenial working environment where everybody could work
without any fear
SUPPLY CHAIN DEPARTMENT (SCD)
Responsible for,
Production planning to meet requirement of market
Procurement of all materials other than WM, leaf and machinery
Managing effective inventory control of WM and tobacco leaf
Arranging timely dispatch of Finished Goods
Running and maintenance of Company’s fleet of vehicles
CHAPTER # 4
SWOT ANALYSIS
4.1 STRENGTHS
Continuous learning and improvement.
Sustainable growth.
Environmental standards achievement.
Market leadership in the world.
Being beneficial to the community (CSR)
Diversified workforce and environment.
Technologically advanced machinery and equipments.
Good salaries packages.
Focus on health and safety on the company premises.
Training and development of its employees.
4.2 WEAKNESSES
Salaries difference between workers who work more and the one who put minimum efforts.
Technological advancement would decrease the workforce and unemployment will increase.
Lack of advertisement due to controversial industry
Workers are always under threat because of downsizing.
Salesman commission is low
4.3 OPPORTUNITIES
Greater opportunities of promoting lower brands in rural region.
PTC has the potential to further improve the cost reduction method.Create a better work environment in GLT department because of more hazards in this department.
Lowering the downsizing will create a good image in the eye of regulatory authorities and government.
Focus on its key brands will result in high growth rate.
Export of premium brands
As most of the population is in low social economic class, there is an opportunity for PTC to increase market share in this segment through focus strategy
Light cigarettes.
Market potential in rural areas.
Rising popularity of smokeless tobacco.
Participation in social activities can enhance the corporate image.
Intense competition provides opportunity for continuous improvement in the quality of brand.
4.4 THREATS
Some of its competitors are also producing high quality brands like Marlboro by Lackson.
Internationally some countries are continuously promoting anti-smoking slogans like the ban of smoking in Bhutan in 2002.
Better marketing campaigns by rivals.
Their well-established brands are highly copied by some local manufacturer.
The political, economic situation is not stable in Pakistan.
Strict laws and regulations by Government.
Increase in Taxes.
Increasing health concerns.
Competitor strategies
Contraband and counterfeit cigarettes
Philip Morris International acquired Lakson Tobacco Company.
CHAPTER # 5
INDUSTRY ANALYSIS
5.1 FINANCIAL ANALYSIS:
By doing the financial analysis of the statements it has been observed:-
That in 2010 firm is better utilizing its assets and profit margin is also high
In our common size balance sheet we see that our long term assets increased from previous year and most definitely this increase occurred due to increase property, plant and equipment. While other long term assets remained almost the same.
Our current assets decreased from previous figure. This decrease had occurred due to decreased in inventory by too much.
On the equity & liabilities sections we see that our equity didn’t change by too much.
Our noncurrent liabilities had increased which is because of increase in
Differed Taxation.
Our current liabilities also increased by a large figure.
Common size income statement shows decreased trend in the cost of sales, because of that gross profit had increased.
The firm’s operating profit didn’t change by small amount.
Firm’s EBT has increased that’s because our financing cost has decreased from previous year but our net income had increased by almost a tiny amount
5.2 OPERATIONAL ANALYSIS:
Jhelum Factory manufactures cigarettes according to the demand of the
marketing department. JF also keeps in mind the machines capacity. JF changes
its machine by increasing and lowering the capacity as per the. Recently Jhelum
Factory establishes GDX2 machines in its production department, which produce
10,000 cigarettes per minute.
5.3 ENVIRONMENTAL ANALYSIS:
PTC is promoting itself as an environmental friendly organization by adopting
“tree plantation” campaign. PTC planned 3 million trees* annually in different
areas of the country.
ECONOMIC ENVIRONMENT:
Majority of the population of Pakistan belongs to the low class and has low
purchasing power. The taxes imposed by the govt. on tobacco industry are also
very high that causes a significant increase in the prices of cigarettes which takes
the quality brands away from the reach of the majority. So for this segment (lower
class) PTC has introduced “ Embassy” and “Gold Flake”. For lower middle there
is “Capstan” and “Wills” and for high and upper class there is “Gold Leaf” and
“Benson and Hedges”.
TASK ENVIRONMENT:
As mentioned earlier, the population of Pakistan is growing by 2.7% annually and
number of smokers is increasing as well. Market size therefore is getting larger and
it is an opportunity for cigarette manufactures. But unfortunately Lakson has
emerged as a strong competitor of PTC and has attracted all the 10% growth of
potential consumers where PTC was not able to do so. This tough competition is
brining a decline in the profits of the company due to which PTC has decreased the
prices of almost all its brands (except Benson & Hedges) to remain in the
competition.
5.4 COMPETITORS ANALYSIS
MAJOR COMPETITORS:
LACKSON TOBACCO COMPANY (LTC):
LTC is PTC’s largest competitor and the second legal cigarette manufacturer in the
Pakistan besides PTC. Marlboro and Red & White are a few of its brands. LTC
used to be affiliated with Phillip Morris, the giant in the global cigarette market;
however, this association was dissolved few years ago. Its market share is actually
greater than PTC, around 46.2%. The main goal of LTC is money making and it
believes in short-term gains rather than long-term benefits. Surprisingly, LTC uses
quite unethical marketing strategies – for example – a number of “under-the-table”
deals are made with the retailers to convince them to take off PTC’s merchandize
from their store, and to accept LTC’s merchandize. This obviously results in a
huge loss to PTC as it costs around Rs. 100 000 to fully merchandize a small shop
MARDANWALLAS:
These brands are manufactured in Mardan and thus are called the “Mardanwallas.”
These are normally low category cigarettes (under Rs. 10) for example Gold Street.
The goal of the Mardanwalls is solely money-making, and is not concerned about
acquiring a strong position in the market. These are also 100% tax evaded. The
government has made legislation regarding this issue; however, nothing has been
done so far. Secondly, their factories are located in the northern areas so tax
evasion becomes very easy. No proper marketing structure or strategies exist for
these brands. Their ATL activities, which include electronic and print media, are
extremely low. These brands usually survive on BTL activities, which mainly
consist of posters.
COUNTERFEIT / OTHER TAX EVADED BRANDS
Counterfeit brands emerge as a threat for PTC, and later become competition as
well. In Pakistan, the concept of copyright laws and its implications is almost non-
existent. As a result, these brands are manufactured without any fear. As a result,
PTC has suffered a huge loss in the recent years as its premium brand Gold Leaf,
has been copied in three different qualities with three different prices for each.
These brands are normally sold in thickly populated villages to uneducated and
low-income people, and at interchanges and motorways. There are also other tax
evaded – that is – smuggled brands in the market. These are called ITBs
(International Transit Brands). These are usually smuggled from Peshawar through
Afghanistan or Dubai.
Market Share:
Market Share of PTC and its competitors
5.5 TECHNOLOGICAL ANALYSIS
IT is the backbone of every business, without it concept of successful business is becoming impossible in modern business environment.
Process Technology:
System Application Program (SAP)
SAP (SYSTEM APPLICATION PROGRAM)
The company undertook the mammoth task in 2004 to replace the existing
enterprise resource planning (ERP) system with SAP, world leading ERP system.
A smooth implementation across the organization, in short period it was possible
though excellent cross functional efforts by the projecting the Sap will greatly
facilitate the achievement of further efficiencies in all key business process.
PTC is the pioneer of using latest technology in Pakistan. The machine they use to
manufacture cigarettes “GDX 2” can produce 10,000 sticks per minute. Everyone
knows that technology has a significant effect on company’s production
capabilities. Use of this technology (GDX) enables PTC to fulfill the market
demand well in time and more efficiently
Pakistan Tobacco 45.70%
Lackson Tobacco 44.20%
Mardanwalls 2.20%
Counterfeit/other 1.8%
Tax evaded brands 5.90%
CHAPTER # 6
HUMAN RESOURCES ASSESSMENT
6.1 HUMAN RESOURCES DEPARTMENT
Every organization is comprised of people. Acquiring their services, developing
their skills, motivating them to high levels of performance, and ensuring that they
continue to maintain their commitment to the organization are essential to
achieving organizational goals and objectives.
Human Resources Department is the part of the organization that is concerned with
the people dimension. It is a staff or support function in the organization. Its role is
to provide assistance in HR matters to line employees or those directly involved in
producing organization goods and services. The main functions of HRD are to
resolve the workers grievances and care of disciplinary procedures, misconduct,
faults and omissions. The HR department provides an opportunity for the
employee and performance manager to discuss development goals and jointly
create a plan for achieving those goals. Development plans should contribute to
organizational goals and the professional growth of the employee.
Core Function of HRD
Industrial Relationship
Recruitment
Selection
Training & development
Placing
Promotion
Transfer
Salary statement
Agreement with Collective Bargaining Agents
Occupational health programme
Legal affairs
6.2 DIMENSIONS OF HUMAN RESOURCE
Mission:
According to the board of Human Resources Department, the mission of the Human Resources Department is;
“To attract, recruit, develop and remunerate the best suitable talent at all levels
and build a culture that triggers our corporate values in order to achieve the
company’s overall objective.”
Product:
According to the Department, the product of the Human Resources Department is Passionate, skilled, confident and excellent employees.
Customers:
Customers of Human Resources Department are, Finance Department, Engineering
Department, Information Technology Department, Production Department, Leaf
Department, Green Leaf Thrashing Department, Materials Management
Department, and Marketing Department.
Processes:
The processes of Human Resources Department include Recruitment,
remuneration & benefits, training and development, industrial relation, recreation
& welfare, and record management. Human Resource Department is the most
important asset of each organization. The role of this department is like the
backbone in the organization. It provides the most competent people to the
organization to get their strategic goals and to get loyalty for the organization.
Composition of Employees
In PTC JF, there are 37 grades. Out of these 37 grades,
Grade 1 to 10 includes general workers to senior supervisors and clerks. From 30 to 33 includes BSO's (Business Support Officers) From 34 to 37, MOM's (Members of Management).
When an employee of grade 10 gets promotion he directly jumps to grade 30 and is
designated as Business Support Officer.
6.3 CLASSIFICATION OF WORKERS
The workers employed in PTC Jhelum Factory and Leaf areas are classified into two categories:
Permanent or non- seasonal workers. Temporary or seasonal workers.
Permanent Workers:
Permanent workers are hired by HRD. The factory employs them directly on
permanent basis. Therefore, they are required to meet all the requirements that the
company has established for a worker. New workers when hired are properly
trained and closely watched at work during the early period of their job.
Temporary Workers
The temporary workers are hired by HRD as seasonal workers. They are on the job
for six months in a year i.e. from July to December now this period has declined to
only 3 months. At depots they are hired for buying tobacco and doing other jobs in
the Leaf areas. At factory they are hired normally for GLT services.
If a temporary worker works for the whole season, he gets the benefit of special
bonus. If he remains absent for 10 consecutive days, another worker for the rest of
the season replaces him. If a seasonal worker remains absent for three consecutive
seasons, his license is cancelled. The wage level and terms and conditions for the
temporary workers are nearly the same as that of permanent workers.
6.4 AREAS COVERED BY HR DEPARTMENT
1) RECRUITMENT:
Recruitment is mainly concerned with securing the potential candidates. It is the
process of contacting the public and encouraging suitable candidates to come
forward for final selection.
In PTC for recruitment, first of all there is a requisition from a department for a
post which if approved by the HRD and then advertised by the head office.
Thereafter there is a short-listing from a pool of candidates. The remaining
candidates undergo tests and interviews, after which there is a call, a medical test
and at the end the best candidate is selected.
FROM WITH IN THE INDUSTRY:
Employee Referrals Advertising Employment Agencies
SELECTION:
Preliminary Selection Filling Up The Application Form Wide Range Interview Employment Proffer
2) TRAINING & DEVELOPMENT:
An employee is trained in accordance with the needs of the concerned department.
The HRD specifies needs of training and arranges courses, which can be carried
out in the country or abroad also. The annual report of the employee includes the
courses he/she has received. The courses include office management,
communications, etc.
Other thing is the employee development. The difference between the employee
training and development is that, that training is present oriented activity while
development is future oriented. Employee development helps the employees and
enables them to cope up the future challenges and perform the activities in the
coming future.
3) PROMOTION:
The employees having a good performance are promoted to next higher post there
are two factors for promotions service/seniority, which is the time that employee
has spent the organization. Performance, which is based on workability, efficiency
of an employee, certain jobs require special training while some does not.
In case of workers annual assessments from is field in service record at the
beginning of every year. Line managers do their assessments, their immediate
bosses. That is from January to December having remarks of unit manager, sign of
in charge of department, marks according to percentage point system. In
production upgrading is easy, group operator to machine controller.
4) TRANSFERS:
Transfer and movements takes place from team to team inter departmental and
from one department to another e.g. depot change in leaf area. The transfer may be
one complete ground, job relation, and complete scuffing of development.
5) WELFARE ACTIVITIES:
One of the major aims of Human Resources Department is to ensure the better
working condition and to take care of welfare of the workers. Therefore, special
attention is paid to those activities that help in generating enthusiasm in the
workers and keep their loyalty to the company. For the sack of this a special post
of Welfare Officer is there in HR department. Following are some of the welfare
activities provided by PTC to its workers.
Learning Resource Center for employees, their dependants and the community.
Dastakari Center for girls.
Provision of free of cost, clean and Hygienic food for employees.
Free first aid services.
Mobile Dispensary for treatment of diseases for inhabitants of the community.
Arrangement of medical & blood donation camps.
Arrangement of sport tournaments.
Conveyance facilities/allowances for the workers.
Uniform allowance for the workers.
Hajj Scheme for workers.
Jahaize Grant to the workers for their daughters’ marriages.
Smoking allowances.
Burial and funeral allowances.
Arrangement is made for distribution of Long Service Awards for the workers who
have worked for at least 25 years at PTC.
Arrangement of Bara Khana on any major achievement.
Eid Millanprograms.
Arrangement of retirement parties.
Maintenance of Factory Mosque.
Scholarships for dependents of the workers.
Enrolment of workers with Employees Old Age Benefit Institute & Employees Social Security Institute.
6) HEALTH AIDS:
a) First aiders are trained from Alshifa their presence is around the clock for each shift, common, red and green. They help in medical checkups typing health records.
b) Medical examinations for workers twice a year January/July treatment allowance in pay. For a new recruit the doctor who is medical officer of the factory does health checkup. For canteen workers laboratory checks like urine, blood, hepatitis, x-ray is done.
7) PRERPARATION OF ID CARDS:
When a person is employed in any section of grade, even contractors are issued
security cards with date of validity, passport size photograph, and NIC number and
signed by issuing authority duly by HR Department.
8) INTERNSHIP HANDLING:
Commonly internship period is six weeks but it may vary subjects to the
requirement of the institution. When applications are found legible, the students are
informed with the joining latter, when they report they are dealt accordingly and
paid duly at the end of the internship if successful, they are given certificates.
9) INDUSTRIAL RELATION:
To keep good and friendly working atmosphere aiming healthy towards production
is necessary to have cordial relation with workers, whenever a issue, problem, a
grievance or misunderstanding is developed between management and unionized
staff it is taken over by understanding, reforming and stress relieving manner
through a specifies process. The industrial relations officers follows the industrial
relations ordinance 1969.
10) MUTUAL INDUSTRIAL ISSUES:
The department looks after following issues:-
Steadfast singing of documents without writing them.
Illegal strike
Stoppage of work.
Wages, rent, allowance.
Meal regulation.
Special attendance allowance.
Hajj allowance.
Leaves.
Financial assistance.
Basic pay increase.
11) VOLUNTARILY SEPARATION SCHEME (VSS):
The company has a scheme for voluntary separation, under this scheme the
employees has the opportunity of early retirement, he is paid more percentage of
his salary plus provident fund. The %age of salary to be paid to them depends upon
the years remaining to his retirement. The percentage is as below:
Up to 5 years 75%
Up to 8 years 40%
9 to 10 years 36%
11 to 15 years 25%
16 to 20 years 18%
1 to 25 years 15%
CHAPTER: 7
CONCLUSION, LIMITATIONS AND
RECOMMENDATIONS
7.1 CONCLUSION:
Pakistan Tobacco Company is part of a growing industry and the trends in the sales
for the five years studied have been positive. As said earlier the company is
enjoying a major share of the market through most of its brand being the market
leader. Thus the company did not let go of the opportunity of the trends in the
market growth and started invested in new and improved capital. The major
competitors of the company are importing their finished goods stock from their
operations in other countries and are well-established companies too. PTC still
enjoys the control over the local market, but today’s customer is more price
conscious and if PTC’s competitors give competition through improved
production facilitates and reduction in costs PTC might not be able to transform to
low cost production facilities in short span of time. Thus for the last six years PTC
has been investing in new tangible assets. To do so the company has been taking
advantage of long term loans and leasing. This has led to an increase in company’s
financial expenses. The company also had to take short term loans to run day to
day expenses as most of its operative income is unstable and cannot be reliable for
day to day expenses. The need for short term financing also escalated due to
increased financial expenses as a result of long term borrowing. Thus short term
financing also resulted in an increase in financial charges.
The company on the whole is a good venture for investing as it is showing a
potential for growth in the future. The investment into fixed assets during the
previous years has lead to a growth in sales. Thus as the firm comes out of its long
term financing burden the interest expense for long term financing will decrease.
The company is also gaining reputation in South Asian markets and with growth in
production it will also be able to explore international markets. Thus the growth in
the markets catered by the company when will go international the sales revenue of
the company will grow significantly. But from an investor’s point of view the most
important thing to be considered is that the company is part of a highly taxed
industry. This taxes and duties will always take away a major part of company’s
income
7.2 LIMITATIONS
Up-to-date information is one of the limitations of the study because the
information, which is available, is not sufficient to fulfill the requirement of the
report, and as all know PTC is such a large organization and the span of operation
is too big so to cover it in little time is one of the limitation of the study, because it
is very difficult to cover each and every aspect of an organization in allotted to me.
The internship program was limited to the Jhelum Factory only so the review
section only contains data about the JF and does not cover the whole of the
organization.
7.3 RECOMMANDATIONS:
WORKERS:
Working environment needs improvement is tried with heavy dust which may
cause lungs and eyes problems. It needs top level commitment to train employees
and to focus on implementation of health and safety policies.
The job of Labor is more hard and dangerous for health, as compared to other
production unit of the JF. The labors should be provided additional allowances.
MARKETING:
All the marketing strategies and planning should then be aimed at the consumers in
such a way that the slogans and images carry the message to the consumer in a
very convincing fashion for winning their favour. The modalities of such a strategy
should be worked out by marketing team familiar with the tastes, conventions and
preferences of the local people.
CAMPAIGN FOR SMUGGLING OF FOREIGN CIGRETTES:
PTC must initiate a vigorous campaign for curbing the growing menace of
smuggling of foreign cigarettes into the local market. And since NWFP has the
notorious reputation for being the hub of smuggled and contra banned goods in the
country as most of smuggled brands sneak into the country through Afghan border
therefore, it is incumbent on officials at the Area Sales Office to go out of the way
in a bid to put an end to this trade.
For this the company should collaborate with the retailers and custom officials to
pin point such elements who are engaged in this trade and through Concerted
efforts uproot them.
ACTION AGAINST NON-TAX PAYING CIGRETTE MANUFACTURS:
Likewise, a large number of non-tax paying cigarette manufacturers are into the
business in the province that must be taken to task and their operations be halted
and confiscated forthwith.
REFRENCES:
www.bat.com
www.business.com
www.ptc.com.pk
Interviews of different officers of different departments.