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Shamim & Co. limited Multan Submitted By : M.Asif Ali Khan MB-08-57 Submitted To: Miss. Parsa Habib HR Manager Shamim & Co. Pepsi Cola Bottlers Multan

Shamim.internship Report Asif Ali Khan

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Page 1: Shamim.internship Report Asif Ali Khan

Shamim & Co. limited Multan

Submitted By:

M.Asif Ali Khan MB-08-57

Submitted To:

Miss. Parsa HabibHR Manager Shamim & Co. Pepsi Cola Bottlers Multan

Page 2: Shamim.internship Report Asif Ali Khan

Acknowledgement

I am very thankful to ALLAH Almighty who gave me the opportunity, courage and

confidence to explore more knowledge to complete my internship, which will help me

greatly in my intellectual development and capitalize on skills. I express my deepest

gratitude to my parents whose prayers always supported in every task of my life and my

advisor , Madam Javeria Abbass who really guide me to enhance my learning in Shamim

& Co. (Pvt) Ltd Multan.

.

I am also very thankful to Mr. Junaid Riaz, Mr. Mansoor Ahmed, Mr. Imran Younus,

Mr. Haider Ali Abidi, Mr. Khurrrum Shahzad, Mr. Abdul Qadir, Mr. Zain ul Abideen

Mr. Asif Bukhari, Mr. Mohsin Shahzad, Mr. Mohsin Niaz, Mr. Tahir Mehmood Asad

and Mr.Muhammad Asim who gave me very valuable knowledge about the workings in

their respective department.

Page 3: Shamim.internship Report Asif Ali Khan

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 Friday 23rd of July 2010. I completed my

six week internship from 23rd of July to 3rd of September 2010.

Page 4: Shamim.internship Report Asif Ali Khan

Shamim & Co. (Pepsi Cola)

INTRODUCTION:

Shamim & Co. (Pvt.) Ltd. was established in 1964, Shamim & Co. is a franchise of Pepsi

Cola International Which deals in CSD (Carbonated Soft Drinks).

Mr.Allah Nawaz Khan Tareen was the founder of the company and also

chairman Pepsi Cola International have 9 (nine) Franchises all over Pakistan. Shamim &

Co.(Pvt.)Ltd. Jail Road Multan in one of them covering 18 District&135Stations.Shamim

& Co. Multan has very committed staff and this is the reason that it captures More than

70% share of market share.

Company has now serviced new experienced & competent sales staff & increases this

share form 70% to 80 or 90%. As for as Distribution / Placement is conserved company

has a very well-establish distribution network covering whole of the franchise areas.

Depending on the potential of the town we have one and more than one distribution in

each town. Sale supervisor / Sale officer is responsible for all the activities of that

distributor. He looks after the stock availability, contingencies and all the routes covered

by the salesman of that distribution. Salesman training is also a main responsibility of

sale supervisor.

Company has invested too much money in shape of Coolers, Visi Coolers, Counters and

Cabin. Which are offered to those shops which are producing good sales to promote sales

& oblige these shops? All the services matters of coolers and maintenance and look after

of these assets are also the responsibility of our sales force.

Mission statement

Our mission is to be world premier products company focused on convince foods and

beverages. We seek to produce healthy financial rewards to investors as we provide

opportunities for growth and enrichment to our employees, our business partners and the

communities in which we operate. And in every thing we do, we strive to act with

honesty, fairness and integrity.

Page 5: Shamim.internship Report Asif Ali Khan

Managing Director

General Manager Technical General Manager Sales General Manager Finance General Manager Operations

Manager Production Manger Sales & Marketing Manager MIS Manager Admin

Manager PersonnelManager FinanceManager Research & SISManager Quality Control

Manager ShippingManager Account

Objective

The company operates through well experienced, loyal and hardworking employees. The

first and the most basic plan it to train them according to the changing technology and

computerized environment, and satisfying their needs and requirements. Upgrading the

plant structure and installation of the new machinery are other plans. The company is

planning to increase its sales force and development in its infrastructure in the coming

time period.

Vision

The vision statement is “we were number 1, and we will be number 1”. Their collective

success depends on their healthy balance strategies the organizations needs and the needs

of their employees and their families.

ORGANIZATION HIRARCHY

Page 6: Shamim.internship Report Asif Ali Khan

Management of Shamim & CO.It Includes:

Managing Director:

Alamgeer Khan Tareen

GM Sales& Marketing:

MR. Amir Hameed

GM Production:

MR. Sarwar

D Finance:

MR. Mansoor Bukhari

Manager Managements Accounts:

Mr. Ch. TAHIR Ameen

Manager MIS:

MR. Rizwan Zafar

Manager HR.D:

Miss. Parsa Habib

Manager Shipping:

Mr. Major Farrooq

Page 7: Shamim.internship Report Asif Ali Khan

Internship program

During my six week internship program, I was moved through following departments:

1. Accounts Co-ordination Department

2. Supply chain Department

3. Banking and Finance Department

4. Management account Department

5. Human Resource Department

6. Audit Department

Accounts coordination department

My 1st week was in the accounts coordination department.

.

Mr. Khuram Shahzad is assigned the task of payment to supplier, others department

and employees.

Function of department:

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.

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.

Mr. Haider Shah and Mr. Kashan are concerning with the sales budget.

This budget includes

Publicity budget ( Banners, posters, gift, paint)

Page 8: Shamim.internship Report Asif Ali Khan

TA ( Traveling Allowance)

DA ( Daily Allowance )

TOT ( Tools of Trade)

Department expenditure

Insurance Payment

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

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:

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 .

Bill delivery and receiving timing is noted.

Provide help to every department through one window operation in accounts.

Every department has a Co-Coordinator who looks after all the payment of that

department.

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.

Page 9: Shamim.internship Report Asif Ali Khan

Suggestions

The future programs of the department are:

Networking with depots

Internet development within organization

There should be formal web site and e-mail accounts of employees in the organization. A

small computer books library will help the staff to add their skills.

Supply chain department

My 2nd 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

Case Pad

It performs various functions that are

Generates inventory reports

Policy making

Contacting with suppliers

Planning for future activities regarding inventory

Page 10: Shamim.internship Report Asif Ali Khan

This department analysis daily stock reports and generates inventory reports showing how much stock

is available.

It also performs the functions of policy making. It includes

Policy designing

Implementation

Amendment

In this regard different policies about different activities

Supply chain policy

Driver policy

NR Policy

Plastic policy

Mobile phone policy

Cash shortage policy

Plastic shell policy

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.

Page 11: Shamim.internship Report Asif Ali Khan

Finance department

My 3rd 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.

These assets includes

o Machinery

o Building

o Stock ( Empty & Liquid )

Modes of payment:

By Sight Payment

By Acceptance

By Negotiation

By deferred payment

Page 12: Shamim.internship Report Asif Ali Khan

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

Letter of Credit:

There are many types of Letter of Credit

Irrevocable Letter of Credit

Revocable Letter of Credit

Irrevocable and Confirmed Letter of Credit

Confirmed Letter of Credit

Un-Confirmed Letter of Credit

Leasing:

There are two type of leasing

Direct leasing

Sales and lease back

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.

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.

Page 13: Shamim.internship Report Asif Ali Khan

My activities in finance department

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

Planning

Leading

Controlling

Marketing

Promotion

Hiring and selection

Interviewing new employees

Supply and distribution channels

Customer relationship

Managements Accounts DepartmentThis department is working very efficiently under the leadership of

CH.AASIM. He is a Assistant manager of this department.

This department is very well established, having devoted workers.

The basic function of this department is to get data from production and

MIS department to prepare report.

Daily stock position

Ammanat Comparison Report

Filled Stock position

FIFO implementation Report

Daily raw material yield report

Daily production Losses Report

Daily CO2 Production Report

Labor Cost Tracking Report

Page 14: Shamim.internship Report Asif Ali Khan

Shift wise record of daily transactions is maintained.

Reconciling physical stock with MIS reports

Posting on balance sheet register

Maintenance of stock FIFO system

The whole company’s function depends upon the reports generated by this department.

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.

HUMAN RESOURCE DEVELOPMENT

My 5th 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 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.

Page 15: Shamim.internship Report Asif Ali Khan

Final Selection:

After clearing all interviews final selection is made.

Placement:

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 developmentCareer 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:

Page 16: Shamim.internship Report Asif Ali Khan

HR department also outsource employees which are above manager level. For this

purpose this department gets services of a recruiting agency named “Abacus Recruiting

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

members above manager level.

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.

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.

Function of Department:

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”

Page 17: Shamim.internship Report Asif Ali Khan

Daily reporting of sale, cash and expense are made.

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

Discipline

Punctuality

How to lead my subordinates

How to maintain different records

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 2009CA 34317964

0390387892 468465470 562158564 674590277

CL 280253635

326286103 375229018 431513371 496240376

Working Capital 62926005 64101789 93236452 13064519317834990

1

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

Current Ratio =

C . AC . L

Page 18: Shamim.internship Report Asif Ali Khan

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.

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 2009EBIT 13130022 15544100 18432038 21643604 25539453Interest Exp 1644312 1061878 1536003 1812483 2138730TIE 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 2009TD 281275235 327307703 376403858 432864437 497794102

Page 19: Shamim.internship Report Asif Ali Khan

TA3851656

194397956

045277548

206333057

857599669

42Debt Ratio 73% 74% 71% 68% 65%

D/E RATIO: 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 2009TD 281275235 327307703 376403858 432864437 497794102

CE10389038

411248790

115135096

220044134

826217284

0D/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

Days sales in receivable =

Gross Re ceivablesNet Sales /365

YEAR 2005 2006 2007 2008 2009A/R 16881442 15527617 20156759 23180273 26657334

Sales84995292

6 885258201106230984

1 1274771809152972617

1DSO 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

Page 20: Shamim.internship Report Asif Ali Khan

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 2009Sales 849952926 885258201 1062309841 1274771809 1529726171TA 385165619 439795604 527754820 633305785 759966942TAT 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

CGS58722774

0 644574970 741261215 85245039798031795

7A 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

Page 21: Shamim.internship Report Asif Ali Khan

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

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 28285589TA 385165619 439795604 527754820 633305785 759966942ROA 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 28285589Sales 849952926 885258201 1062309841 1274771809 1529726171NPM 1.35% 1.64% 1.70% 1.80% 1.85%

Page 22: Shamim.internship Report Asif Ali Khan

Common-size Percent

Analysis AmountBase Amount

100%= ×

Financial StatementBase AmountBalance SheetTotal AssetsIncome StatementRevenues

VERTICAL ANALYSIS (COMMON SIZE ANALYSIS

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

Page 23: Shamim.internship Report Asif Ali Khan

Horizontal Analysis

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.

PEST ANALYSIS

The PEST analysis examines changes in a marketplace caused by the following factors.

Political changes

Economic changes

Social changes

Technological changes

Political changes

From one party to another in control for example the rise in private healthcare and

privatization under conservation governments.

Non-alcoholic beverages fall with in the food category under FDA. The government

plays a role with in the operation of manufacturing these products in terms of regulations.

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There are potential fines set by government on companies if they do not meet a standard

of law. The following are some standards of the factors that could cause Pepsi -cola

company’s actual results to differ materially from the expected results described in their

underlying company’s forward statements.

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.

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 changes:

Creates opportunities for new products and product improvements and of course new

marketing techniques, the internet, E-commerce. Some factors that cause companies

actually results to differ materially from the expected results are as follows:

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The effectiveness of company’s advertising, marketing and promotional programs. The

new technology of internet and television which use special effects for advertising through

media. They make some products look attractive.

SWOT Analysis

STRENGTHS:

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.

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.

High brand image and customer loyalty

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

Weaknesses:

Poor feed back from employees

Insufficient salaries

Page 26: Shamim.internship Report Asif Ali Khan

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.

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

Threats:

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

Page 27: Shamim.internship Report Asif Ali Khan

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

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.

Conclusion:

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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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.

Page 29: Shamim.internship Report Asif Ali Khan