Professional Documents
Culture Documents
Table of contents
CHAPTER #1
Dedication………………………………………………………………………………3
Acknowledgement.....................................................................................4
Executive Summary………………………………………………………………...5
History and Background……………………………...……………………….….6
Vision statement…………………………………………………..……….…………..9
Mission Statements………………………………………………..…………………..9
PEL-LG strategic Partnership…………………………………………………….....10
Company Products………………………………………………………………….12
Company Profile……………………………………………………………………..17
Organizational Structure…………………………………………………………....20
Hierarchy of Marketing Appliances Division……………………………..….….21
Description of Marketing Departments……………………………….……...….22
Description of Different Departments……………………………………………26
SWOT Analysis of PEL………………………………………………………………...35
Strength……………………….……………………………………………….36
Weaknesses………………..….……………………………………………...39
Opportunities………………………………………………………………….42
Threats………………………………………………………………………….43
Problems………………………………………………………………………………..47
CHAPTER #2
Internship Activities…………………………………………………………………..48
Associated Manager and his Style……………………………………………….56
Conflicts and appreciation………………………………………………………..56
Stress and strain………………………………………………………………………56
Compliance of Internship Program and BBIT…………………………………...57
CHAPTER # 3
Overall Summary……………………………………………………………………..59
Recommendations for the Organization………………………………………..61
Recommendations for IBIT………………………………………………………….63
The Institute for Next Internship................................................................64
Special Thanks…………………………………………………………..…………….65
Dedications
Acknowledgements
We are extremely grateful to Allah for granting us the opportunity, perseverance and
determination for handling the internship at PEL for the July-August 2010 duration. We
extend many thanks to our supervisor Mr. Ghulam Aziz-ud-din who was extremely co-
operative with us and guided us throughout the Internship Program, and Mr.Noor and Mr.
Abdullah for his prowess in Excel and for also taking out time to explain. They helped
me a lot in performing all the activities and in gaining the practical knowledge of
marketing. They monitored my all activities and gave me the best suggestions to
complete all the assigned tasks in an effective manner.
I am so thankful to my institute and my teacher Sir Mansoor Ashiq for giving me the
opportunity of this internship during my course of studies, that build my personality and
enable me to do some creative work be a successful person in practical life.
Executive Summary
I have worked as intern at PEL (Pak Elektron Limited) for the duration of 6 weeks (22nd
July to 9th august 2010). I made this report about the working of PEL specially consumer
marketing department and appliances division. Whole staff is very co-operative. I have
learnt a lot from this organization which I mentioned in this report.
This report will give its reader knowledge about the history and background of PEL, its
strategic alliance with LG, its products, owners, organizational structure, departments and
their working, its competitors and goals. It also provides SWOT analysis for the over all
analysis in the market. Finally, this report contains my practical learning,
recommendations and suggestions.
The purpose of this exercise was to learn while working in the practical field, especially,
the knowledge related to the Marketing division. It has really helped me observe as to
what extent the text book knowledge is being practiced in real field.
Pak Elektron was setup in 1956 as a Public Limited Company with the object of initially
producing transformers, switchgears, and electric motors. AEG experts and PEL
personnel carried out the designing and production of this equipment jointly.
After the conclusion of joint venture agreement with AEG Saigol Group acquired the
PEL COMPANY in October 1978.
The company floated its shares to the general public and was listed on Karachi Stock
Exchange (KSE) and Lahore Stock Exchange (LSE).
In 1980, Appliances Division was established and in 1981 it started the production of
Window Type Air Conditioners with the technical collaboration of General Corporation
of Japan. These air conditioners were well received in the market for its quality.
Subsequently in 1987 the production of Refrigerators and Deep Freezers was started.
In 1993 the company has started the assembly of Compressors for Refrigerators and Deep
Freezers under technical collaboration with Messrs. NECCHI COMPRESSORI of Italy.
It was in early 70s that PEL became known in overseas markets due to its quality. The
company started its export to countries like Saudi Arabia, Abu Dhabi, Qatar etc. Later on
PEL supplied electrical equipments to various other countries in the Middle East, Far
East and Africa with great success.
PEL (Pak Elektron Limited) is the flag holder of the Saigol Group of Companies. Pak
Elektron Limited (PEL) is the pioneer manufacturer of electrical goods in Pakistan. It was
established in 1956 in technical collaboration with M/s AEG of Germany.
In October 1978, the Saigol Group of Companies bought the company. Since its
inception, the company has always been contributing towards the advancement and
PEL products right from the beginning have been of a high standard and the name PEL is
synonymous with QUALITY all over Pakistan. Since its inception, the company has been
acting as an institution working for the advancement and development of engineering
know how in Pakistan. The company has produced hundreds of engineers, skilled
workers and technicians through its apprenticeship schemes and training programs.
In October 1978, the company was taken over by the SAIGOL GROUP, which is one of
the leading industrial groups in PAKISTAN, having diversified business activities in the
fields of: Textile, Engineering, Banking & Finance, Fuel & Energy, Trading,
Automobiles.
Home Appliance Division includes the products like WRAC (Window Room Air
Conditioner), Split Air Conditioner, Refrigerator, Fridge, and Microwave Oven.
Power Division:
Power Division includes the products like Transformers, Switchgear and Energy Meters.
The present range of power products includes Transformers up to 33KV 5MVA capacity,
Switchgears up to 33KV, Cage Induction Motors up to 40HP, Single Phase Energy
Motors, Small Generators, Shunt Capacitor, Banks and Recloser etc.
Vision Statement
Mission Statements
Slogan
Change your Life
Pak Elektron Limited, held a press conference (April 21, 2009) to announce the strategic
alliance between Pak Elektron Limited & LG Electronics. An agreement in this regards
was signed at the ceremony by Mr. Murad Saigol, Director Operations, Pak Elektron
Limited & Mr. E. D. Choi, General Manager, LG electronics, Pakistan Liaison Office.
Mr. Saigol announced this to be the biggest partnership in the history of home appliances
and air conditioners in Pakistan and this strategic alliance will expand in the times to
come. PEL has been appointed the official distributor for LG Air Conditioners,
Refrigerators, Microwave ovens, washing machines and vacuum cleaners from June
2009. The addition of LG for Pak Elektron will now mean Pak Elektron will have two
leading brands, PEL and LG, in both the categories of home appliances and Air
conditioners.
This synergy of brands will bring technologically better products to the customer at
competitive prices. PEL will be offering innovative products made from cutting edge
technology of LG. LG Electronics has 30 R&D centers globally and spends hundreds of
millions of dollars on R&D making it one of the leading brands in the world. This will be
possible as LG has a wealth of global expertise in terms of designing the right product for
the consumer. LG will also enhance the production capabilities of Pak Elektron through
technology transfer which will translate into more smart and sophisticated designs, with
competitive cost of production.
As the facility is upgraded it will be fully capable for export of LG products thus
improving the foreign exchange earnings for Pakistan. Pak Elektron will benefit from
economies of scale as a result maximizing return to all stakeholders
Company Products
1. Appliances Division
2. Power Division
1) Appliances Division
PEL Refrigerators
The manufacturing of refrigerators started in 1986-87 in technical collaboration with M/s
IAR-SILTAL of Italy. Like the air conditioner, PEL's refrigerators are also in great
demand. Today, PEL Crystal has 30% market share. Its cooling performance is tested and
approved by Danfoss, Germany and its manufacturing facility is ISO 9002 certified by
SGS Switzerland.
PEL Deep Freezers
PEL deep freezers were introduced in 1987 in technical collaboration with M/s Ariston of
Italy. Because of durability and high quality, PEL deep freezers are the preferred choice
of companies like Unilever.
2. Power Division
PEL Power Division is one of the major electrical equipment suppliers to WAPDA &
KESC. Over the years, PEL electrical equipment has been used in numerous power
projects of national importance within Pakistan. Since 1956 the company manufactures
Transformers
Energy meter
Switchgears
Kiosks
Compact Stations
Shunt capacitor banks
Transformers
PEL’s first major power product being produced since 1956. The company
manufactures Transformers up to 5000KVA capacity. These oil-immersed
transformers are suitable for both indoor and outdoor installations, being
manufactured as per IEC 76, BSS 171 or VDE 0532 standards. Sealed tank designs
are available up to 200KVA while all larger sizes are conservator type. PEL
Transformers have been tested in KEMA labs Holland, against short circuit
withstand in addition to Routine Type and Impulse Tests in Pakistan.
Besides the standard 11/0.415 KV transformers, PEL also manufactures. 33/11 KV
transformers up to 45000 KVA, pad mounted transformers and Silicon Oil Transformer
etc.
Switch Gears
PEL’s second major power product is High Tension and Low Tension switchgears being
produced for indoor and outdoor installations complying with the latest international
specification i.e. IEC, BSS or VDE, PEL’s switchboards are sheet fabricated totally
enclosed, floor mounting vermin and dust proof. These are supplied with factory fitted
relevant components and copper bus bars internal wiring, terminal blocks etc. in
preprinted form. Out switch gear manufacturing line consists of High Tension Indoor or
Outdoor type switch gear, metal clad, draw out type with vertical or horizontal isolation
can be supplied upto 33 KV voltage during rating and short circuit level of 750 MVA as
per customers requirements. These panels can be supplied complete with triple-pole,
minimum oil/bulk oil /SF6 Air Magnetic / Vacuum Circuit Breakers, Current and
Potential Transformers, meters protection relays and other standard accessories PEL’s
11KV switchgears have been tested for short circuit withstand if the KEMA International
Laboratory.
Energy Meters
PEL’s third power product is the high tech, high quality single-phase wattmeter
being produced under licensed from ABB (Asea Brown Boveri Power T&D
Company) of USA. In the range 10-40 amps and rated 240 volts. It is also being
planned to expand in other metering areas in near future. The plant with an annual
production capacity of 5, 60,000 meters became the first unit of its kind in 1997, to
be awarded ISO-9002 certification, in Pakistan.
Special products like 11KV and 33KV Auto Re-closers and 11KV shunt capacitor
banks were also supplied to WAPDA under IDA and USAID International contracts
through open international competition
Distribution Transformers,
1956 Switch Gears, & Three AEG West Germany
Phase Induction Motors
PEL was taken over by
1978
Saigol Group
PEL Window Type Air
1981 General Corporation Japan
Conditioner
2009 LG Titan LG
Pak Elektron Limited (PEL) is the flag bearer of the Saigol Group of Companies.
The products manufactured by PEL have always been of high standard and the name
'PEL' is synonymous with QUALITY all over Pakistan. Since its inception, the company
has been working for the advancement and development of engineering know-how in
Pakistan. The company has produced hundreds of engineers, skilled workers, and
technicians through its apprenticeship schemes & training programs.
PEL has been continuously adding new products to its range. As a result, PEL has
registered a significant increase in its sales volume, during the last ten years.
The company has always been contributing towards the advancement and development of
the engineering sector in Pakistan by introducing a range of quality electrical equipments
and home appliances and by producing hundreds of engineers, skilled workers and
technicians through its apprenticeship schemes and training programs.
Board of Directors
Company Secretary
Mr. M. Omar Farooq
Chief Financial Officer
Syed Manzar Hasan FCA
Auditors
M/s Yousaf Adil Saleem & Co. (A member firm of Deloitte Touche Tohmatsu)
Chartered Accountants
Legal Advisors'
M/s Hassan & Hassan Advocate
Organizational Structure
IT
Marketing department is main nerve of any organization as far as PEL is concerned; PEL
has two different marketing departments i.e. separate for the two divisions:
Appliance Division.
Power Division.
Appliance Division
The products marketed and managed in Appliance Division are as follows:
Refrigerators
Microwave ovens
Split and Window Air Conditioners
Washing Machine
Water Dispenser
The primary duty of marketing department is to make an overall marketing plan for each
product and also analyze the current market situations by monitoring the competitors
separately and constructing strategies accordingly.
It includes the development of daily sales report region wise, location wise and to
compare it with the annual sales plan and in case of fluctuation take corrective actions
and make necessary arrangements. Another task of marketing department is allocation of
advertising budget and to develop promotional plans for retailers, wholesalers and end
consumers within limited financial budget for the whole year.
Beside these activities this department is also responsible for check and balance of
dealers. This department not only motivates the dealers but also check their activities. It
also checks their credit limit because dealers have awarded different credit limits
according to their potential of sales. Whenever any dealer’s credit crosses its limits they
stop the supply and first they try to motivate dealer to clear his credit then they restart his
supply. These all things happen because much of PEL’s sale is on credit.
Dispatch
Dispatch is another department under the Marketing Head. In this department all the
things are maintained which are send out of the factory or to dealers.
The main function of this department is the collection of the monthly installments from
customers and develops monthly installment reports and ledger. It also includes the
presentation of monthly cheques, their report as well as preparation of bounced cheques
Sheet.
Cash inflow & Cash Outflow Position is Checked on daily basis. Balance with
different banks is matched with Ledger.
Application Collection
Covering letter for approval and audit
Approval and payment
Entry in software
Order from generation
Audit of order forms
Order form send to dispatch office for delivery
Filling the application with GSS wise
Finally send the Delivery Orders to the consumers.
As the security in the company like PEL is very much important so there is 24-hour
arrangement of security by three shifts in charges headed by a security officer. He is also
responsible for the fire fighting activities and for the placement and checking of all the
fire fighting equipments. For the purpose of security and for the visitors there are two
gates under the supervision of a supervisors with two gate assistants who are responsible
for all the in and out transport and movement activities in the organization.
There is a telephone exchange in the organization having a facility of 13 lines. The
organization is providing the basic necessities to the workers e.g. flour, ghee, sugar etc.
from the fair price shop at very controlled price and quality. Because this is part of fringe
benefits these benefits are provided to the employees. There is a fair price supervisor who
is responsible for the purchase and distribution.
PEL is also providing the facility of mess to the workers, officer as well as to the interns.
Mess is provided at very nominal charges. Mess supervisor is responsible for the
purchases and cooking.
There is not a particular hospital in PEL but there is a dispensary with two dispensers and
one senior dispenser. For the medical checkups and for any detailed curves the employees
are sent to social security hospital.
Finance Department
Finance Management is the lifeblood of any industry. If this area of corporate activities is
improperly handled, a company may lead insolvency despite having all the resources and
opportunities. Therefore proper financial management is vital for every business concern
and PEL is not lacking behind over here.
At PEL finance department for both division (Appliance and Power) is separate but their
procedure are same. To control both another departments called “Finance Center” is
established. Functions of finance are:
The finance department maintains record of all its expenses through vouchers. Generally
the following types of vouchers are used for this purpose.
The Finance Center prepares and keeps up to date record of income tax & Sales Tax
deductible at source on the payments made to its buyers i.e. WAPDA and others, income
tax/sales tax deductible on the salaries / wages or on sales of its employees/dealers and
tax payable to the government on the company’s profit.
Procurement Department
PEL has state of the art methods of production and they also outsource the products and
raw material not only from Pakistan but also from Asia, America, Europe, and Africa.
So for this purpose PEL has two different departments for procurement, which are:
Institute of Business and Information Technology Page 26
Pak Elektron Limited
Local Procurement
Foreign Procurement
Production Department
Production department’s key responsibility is to develop and create products that are
required for the specific department. They also receive a major plan for the whole
financial year that indicates the number and models of each brand and the deadline time
for each lot. PEL’s production department is comprised of different units according to the
products. Following are the names of production department:
Refrigerators Production Department.
Transformers And Switchgears Production Department
Electricity Meters Production Department.
Accounts Department
The Accounts Department looks after the financial matters. Accounts department for both
power and appliances division have similar functions as below
Financial keep of daily, including the income statement and balance sheet.
Book keeping of daily monetary transactions.
Production maintenance reports
Cost data on labor, materials and overheads.
Remittances and loans
Expense reimbursement
Tax statement
Employees Salary Recording
Cash payment vouchers for cash transactions recording.
Purchase vouchers
Bank payment vouchers
Journal vouchers for general expenses.
Income Tax /Sales Tax Recording
Controlled by Account Officer, this section is responsible for keeping three types of
employee’s salaries record. These records pertain to workers, staff and officers /
managers.
When a person joints the organization he needs to submit a joining report to HR&A
for verification. Only those employees are eligible for salaries that have salary
authorization and appointment letter issued by HR&A department. Every month
HR&A department send an absentees report to salary controller of Finance Center.
This list contains names of those employees who were on unauthorized leave. The
salary controller deducts required amount of money for unauthorized leave. No salary
is deducted if casual / sick / earned leave is properly applied for.
The monthly salary record of each employee is entered in the permanent master file
of computer. Necessary changes are made if any increment is observed in the
employee’s salary.
Industry Analysis
There are two major local brands i.e. Dawlance and PEL.
Dawlance
The company started their operations in early 80’s. Currently United Refrigeration
Limited is the leader in the Industry, its annual sales are approximated up to 240,000
refrigerators per annum, and they are also dealing in deep freezers, Microwave ovens,
washing machines, Split air conditioners, Televisions and kitchen appliances.
Like every other brand, they also got into agreements with different financial institutions
to cater the hire purchase customer. Company also got its own network of retail outlets in
Karachi to cater the same.
Company’s R&D made them the most progressive and dynamic brand in the market; they
normally introduce new design after every two – three years. Dawlance offer their
products at competitive rates to their customers. They used to offer very controlled credit
and incentive policy but now they have increased their incentives and relaxed credit
policy, because of improved competition products.
PEL
Institute of Business and Information Technology Page 30
Pak Elektron Limited
PEL got into appliances business in 1983 with window room air conditioners. The
product was a big success and became the leaders in this product. In 1987 PEL added
refrigerators in their product line. The initial product didn’t get a good response from the
market
PEL re-launched refrigerators under the silver bullet brand CRYSTAL in 99. During the
first year of launch 50,000 units were sold against 27,000 units in 97-98. Before the
launch of Crystal, the product was at the decline stage of product life cycle. From ’99
onwards PEL refrigerator sales grew at an average internal growth of 36% per annum and
emerged as the second largest manufacturers in Pakistan market.
In many competitor analyses, marketers build detailed profiles of each competitor in the
market, focusing especially on their relative competitive strengths and weaknesses using
SWOT analysis. Marketing managers will examine each competitor's cost structure,
sources of profits, resources and competencies, competitive positioning and product
differentiation, historical responses to industry developments, and other factors.
Marketing management often finds it necessary to invest in research to collect the data
required to perform accurate marketing analysis. Accordingly, management often
conducts market research (alternately marketing research) to obtain this information.
Marketers employ a variety of techniques to conduct market research, but some of the
more common include:
SWOT analysis is just one method of categorization and has its own weaknesses. For
example, it may tend to persuade companies to compile lists rather than think about what
is actually important in achieving objectives. It also presents the resulting lists
uncritically and without clear prioritization so that, for example, weak opportunities may
appear to balance strong threats.
Strengths
PEL has the following strengths and is in more competitive position in these areas than
its competitors. Following are the main strong points of PEL:
PEL has created the strong brand image in the mind of the customers through higher
quality and low price. The customers of the PEL always prefer to buy the PEL home
appliances like WRAC split AC and refrigerators whenever they wanted to buy. PEL is a
popular company in Pakistan and every one knows about the PEL products and its brand.
That’s why PEL selling of WRAC are very high in the market than the competitors
selling.
It is also the plus point for the PEL that it has also developed the strong dealer network in
the market. The dealers are always trying to sell the PEL appliance to the customers
because they know there are high margin in the PEL products. They can get more money
after selling the PEL products. The management of PEL also provides more incentives to
their dealers than their competitors. Dealers are very conscious about the PEL products
and always guide the customer in buying the PEL appliances and tell them the more
qualities of PEL products than others products.
PEL is also in a strong position that it provides the superior quality to your customers. It
makes sense in the mind of the customers that PEL products are better in quality than the
other companies’ products. PEL also provides the after sale service to their customers
which delight the customers satisfaction. It is another way to advertise the products
because when customer is highly satisfied then he tells the other ten persons that they
should buy the PEL products. It is the free publicity of PEL products that PEL Company
gains.
After the Dawlance refrigerators PEL has a second position in refrigerators market. PEL
always continuously strives to pursue the strategies adopted by the competitors. As a
consequence the price war starts among the companies so each company reduces the
prices and tries to increase the sales of its refrigerators. PEL is also making efforts for the
quality improvements than its competitor Dawlance.
So PEL is one of the companies, which is having a strong grip in the home appliance i.e.
WRAC, Refrigerators, micro wave Oven etc that is a strong point for the company. PEL
is penetrating the market by introducing the new home appliance like Split Air
conditioner and always trying to get the maximum shares in the home appliance market.
Strong Management
It is another plus point that PEL has a strong management. Its employees are more
competent and fully skill and knowledge. They always co-operate the top management in
achieving the goals that are assigned to them. Employees are well aware about the
company objectives and so they are committed to the development of company.
Distribution of Authority
Top management of PEL delegates the power to the subordinates for achieving the
marketing objectives in a specified time period. So every manager has an authority that
use in achieving the Goals. He can easily handle the complaints of customers and try to
satisfy them. So it is a strong point for the PEL because there is decentralization of
powers.
PEL provides free customer service for one year to its customers. So the customers
always buy the PEL products due to its free service and it becomes loyal customer for the
PEL. PEL always provides help to their customers for repairing the WRAC, Refrigerators
and other items. PEL always make efforts to satisfy the customers.
Although PEL is owned by the SAIGOL GROUP but its shares can be purchased and
sold in stock exchange market. So every one who is interested in purchasing the shares of
PEL he can purchase. It is also called public limited company. So people are more
interested in buying the PEL products.
Weaknesses
Like other companies PEL has some weaknesses in operating the business. If PEL
overcome on these weaknesses then it can become a market leader in the home appliance.
PEL loose some competitive edge in the following points:
Financial Problems
Lack of advertisement
System variations
Lack of Product range
Less Utilization of capacity
Financial Problems
Sometimes PEL faces the financial problems because its stocks are so much piled up in
the stores that create the problem of cash flow because when the stocks are not sold and
the production is in process for 24 hours a day than the company faces such problems. So
company aggressively researches the sources of cash and stresses the dealers to sell the
PEL’s products to the end consumers. Company sometimes sells their products on
advance bases to the dealers and gives them high margin of profit. That’s why a company
is facing the financial problems and company never pays attention on the alternative
resources that will help in reducing the stocks. That is a customer demand and due to this
it is the main weakness of company.
Lack of Advertisement
It is a second major weakness of PEL that it never makes advertising on TV. That creates
hurdle in selling the products and customers cannot know the changes, which are made in
products by the company time to time. Company is not in a position that it made
advertising of all their products on a wide range because of its high cash requirement
towards the production side. Due to this problem company always make efforts to
develop strong relationships with dealers.
System Variations
It is also the main weakness of PEL that there are rapidly a change in polices of selling
the products. That’s creates problems for the selling team how to sell the products to the
dealers because the top management requires the urgent amount of money. So selling
team sells the products sometimes on hard cash that will reduce the prices of products
that gives the benefits to the dealers and creates problems for the management.
PEL has introduced more products of consumer items but there are more needs to
develop new consumer items like PEL washing Machines, Vacuum cleaner and other
items. Due to lack of product Range, Company cannot earn more profit because
consumers have high demand of these products and they say that if company is investing
in these products then we can keep all PEL items and we never need to keep other’s
company products.
Due to lack of finance a company cannot utilize all its resources on its full capacity. It
increases the cost of products per unit that decreases the profit margin of each consumer
item. Sometimes company cannot allocate the resources according to the requirements of
production department that’s becomes the problem for the complete utilization of
resources. For the company it is also the main point of weakness.
Opportunities
For the PEL there are more opportunities for expansion the business. If PEL realize that
opportunities then it will be more fruitful and profitable for the company. Even if
company does not take advantage of these opportunities then it will loose its competitive
position and high profit. Its `competitors will give PEL tough time to pursuing the
opportunities that are adopted by them. Following are the opportunities for the PEL.
PEL has the opportunity to explore the market in all over the Pakistan. Even though PEL
introduce its products in all cities of Pakistan but there are so many places that have the
capacity to absorb the PEL’s products. These places are tribal areas in NWFP and
northern areas of Punjab and NWFP, central area of SIND. If company introduces their
products in these areas then it can get a large amount of profit and increase its market
shares.
It is the main opportunity for the PEL that it can increase its product range that will be a
more profitable for the company. There are more needs to develop new consumer items
like PEL washing Machines, Vacuum cleaner and other items. Due to lack of product
Range, Company cannot earn more profit because consumers have high demand of these
products. If PEL does not take this opportunity then it will loose high margin of profit
and market share. It will reduce the fixed cost and increase the efficiency of the
employees.
Export Opportunity
PEL Company has also the opportunity to export their products in other international
countries like UAE, SAUDI ARABIA, and other Arabic and African countries. It will not
only reduce the dependence on one market but also increase the market shares and
profits. It will also help the company to spread the fixed cost on all of its production that
will reduce the total cost and company will enjoy the high profit.
Threats
PEL Company in such a competitive era has many threats as well. These threats are for
the present situations and future. Company should make its policies and strategies
according to these threats. So following are the main threats for the PEL:
There are few people who have big investments and they are importing the Chinese
product by their own Brand name. This is a very big threat for the company and company
is trying to create some attraction for the investors to de motivate the investors.
As there is stiff competition in the home appliance market, it will cause the price war. So
every company reduces the prices of its products to increase the sales. It will not only
reduce the profit margin of the company but also reduce the quality of products. So price
war is the main threats for all the companies, which are operating in these products.
There is also slow growth rate of home appliance in Pakistan that will increase the stocks
of the company. It becomes the burden for the company that how to sell these stocks. Its
main reason is that purchasing power of the buyer is very low and it has no income to buy
the expensive the home appliance. It is also becoming a main threat for all the companies.
The rapid changes in governments will become threats for the companies because every
government adopts its own policies for the industries. So it increases the uncertainty for
the investors who want to invest heavy amount in their new projects. That’s become the
major threat for the companies and decreases the profitability. Due to fear of politically
instability companies will also not invest the heavy amounts.
Tax Department
Tax department is another major threat for the companies that will restrain the business
expansion. There is more complicated tax procedure for the companies, which are
interested to increase the investment in their businesses. A tax department also asks the
company from where it receives the money and where this money will spend. Due to fear
of heavy taxes companies would not like to invest the heavy amount.
Problems
Most of the business of PEL is on banks finance based that is not a good for future
because they are giving very high mark-up to banks and investment agencies from their
profit.
Lack of Advertisement
PEL does not focus on advertising while its competitors are focusing on this part.
Lack of Co-ordination
There is lack of co-ordination between the departments. Every department is concerned
with its own matters not with the whole company.
Chapter # 2:
Week # 1
Activities
During first week, I observe company culture, rules and regulation, norms and the
working of CMD department. I observe the Head of Department Mr. Ghulam
Aziz-ud-Din and marketing executive Mr. Noor.
The first main task assigned to me was to match the (GSS) number from the
customer’s files given to me and I had to draw the file of customer who’s GSS
and name match with the list. Then I have to draw that NOC’s and make a copy of
that NOC and send the original NOC to the consumer and keep the photocopy as
record in the file. And then I have to report my HOD about the missing
information in the NOC file.
Learning
I have learned a lot from the observation, as it was my first experience so everything
here was new to me.
I learnt that NOC’s are Not Objection Certificate, which is issued to the
consumers when their installments are completed. This certificate shows that now
there is no objection and no installments remaining.
GSS stands for ‘Ghar sanwaro scheme’, which is basically a number assigned to
the customer when he/she order some product through lease. This number is
Unique.
I learnt the way to collect, arrange and report information according to the
standard format provided by Mr. Ghulam Aziz-ud-Din sir.
Week #2
Activities
Task assigned to me was to calls the customers and inform them about the delay
in the delivery of their orders. I called several customers and inform them the
reasons of delaying their orders. As there were some changes taking place in
government policies and taxes, so our finance department took some time to
finalize the price list. So supplies delayed for about 4 to 6 working days.
Dealings with customer and also giving them information about the lease
agreement, requirements for leasing the product and also help the customers in
filling their application forms.
Learning
My business communication is improved there. I learnt communication skills first
in my BBIT program in Business Communication subject which is taught to me
by Mr. Tahir
Secondly I should thank to my Supervisor who told me how to talk to customer,
one should have to be polite and reply calmly in every situation, as Customer is
always at top priority. That increases my patience level and taught me
professional behavior.
Then I made a report of customers who are not satisfied with this and I submitted
it to my supervisor which looks like:
2916 Usman Afzal House#21, Zaid I don’t want, just Slip Air
road, lalpul, cancel my order Conditioner
Lahore.
Week#3
Activities
I visited many departments for different assignments like accounts and finance
departments for signing of cheques, and also in marketing AD department for
signing the documents and copying then which was given to me by Mr. Noor
(marketing executive-PEL, CMD)
Again dealing with customers. Helping customers in filling their forms of buying
product on lease.
they call me for interview and conduct my interview. Out of 300 interns, 6 to 8 is
selected for this interview and I was one of them.
Learning:
Visiting different departments gave me opportunity to interact with different
people of different departments; I still have a very good relation with some of
them. I remained patience all the time even if I had to wait for my work for no
reason. Patience is one of the most important tools for learning. Following the
teachings of Sir Mansoor (selling and sales management) I learnt so much in the
company.
Form the very first interview I ever had in my life in the company, I learnt that
interviewer should reply calmly and never get nervous at any situation.
Week # 4 and 5:
Activities
I worked in Appliances division of marketing in 4th and 5th week.
Learning
From the first task I came to know the practical implementations of Observational
and Quantitative research. Teachings methodologies of Ms. Nazish Rizvi helped
me a lot in doing the research. In this research I visited different dealers which
were not only dealers of PEL products but also its competitors.
Week # 6
Activities
Survey of different departments to gain some more practical knowledge and to
know the workings of different departments. I surveyed in detail the following
departments:
Consumer Services Department (CSD)
Human Resource Department (HRD)
Learning
From the surveys of different department, I learnt work of different departments.
In Consumer Service Department of PEL, their main task is to provide after sales
services to the customers. Some of the employees of Consumer Service
Department resign from the job because of the too much work load; So PEL
should decrease the workload in order to retain employees in this department.
One very interesting thing and a common mistake even made by the
organizations I have learnt is that I was not an INTERNEE; definition of
internee at Google is “the internees were enemy aliens and suspected terrorist”
I also learnt that how to prepare for the interview. How to sit in front of
interviewer, how to dress up and how to use gestures properly. How to
counter your week points.
To increase your sales and stay in competition with top brands it is necessary to
keep your dealers happy by giving them incentives.
The way to deal with your customer’s complaints in such a way to satisfy them.
Importance of documents
Chapter # 3:
Overall Summary
My over all experience at PEL was very good. I learned lot of new things which I believe
will help me throughout my life. PEL is a recognized organization but still there are some
problems as I mentioned above. If PEL considers these problems and solve them it would
be very easy for them to achieve maximum market share and became the market leader.
I have learnt many things through this internship program. Ranging from how an
organization works and essentials of surviving in a business environment to importance
of proper and updated documentation and also the ways and means of dealing customers
effectively. As well as the pivotal role that coordination among various departments plays
in achieving optimal results. This internship program will produce quality employees in
the future. A Youth empowerment program (YEP) held by HR DEPARTMENT for the
improvement of CV writing and interview skills was very learning experience.
Why Not?
- Too much distance between PEL & my home.
- Unsatisfactory Pay package.
- Strict Rules & regulations
As I found brand name is very important factor in consumer buying behavior, thus
it is advised that PEL should work on the brand image. Although PEL has a
strong brand name, but it has to create much more stronger one, mainly through
advertising mainly electronic media advertising, to compete with Dawlance,
Waves, and other international brands.
There should be job rotation to make the more learning culture of PEL, which
keeps the interest of the employees in their work.
The company should add more features to their products, like different products
in different colors and sizes. People are attracted towards a product with unique
features and something that would make the customers feel that they have got
their moneys worth.
To gain more competitive advantage over their competitors, PEL has to work on
their distribution network. The company must give more incentives to the dealers
so that they remain loyal to the company and promote the products.
The company should change the advertising theme and slogan to attract and for
the attention of customers. They should show some creativity in all promotional
activities. So PEL should come with some catchy Slogan.
They should advertise throughout the year so people should remember them and
will be more brand loyal and new customers will be attracted. They should use all
the medium of advertising to be more successful in attracting customers.
IBIT should do something constructive towards building the brand image of the
institute as well as its degree because people still don’t much aware of that
degree.
One thing I appreciate about coca PEL; they give a lot of liberty to their interns.
Special Thanks
I was not alone in making this report many people were directly and in directly involved
in this effort. Where ever I went to get the information related to Pak Elektron Limited, I
got the positive response. In the organization there were many persons who should be
getting words of thanks form my side
I am very grateful to the following persons for helping me to complete my internship
under their guidance and supervision.
http://www.pel.com.pk/
Mr. Ghulam Aziz-ud-din (Head if department-CMD)
Mr. Noor (Marketing Executive-CMD)
Mr. Abdullah (Marketing executive-CMD)
Mr. Irfan (Brand manager-PEL)
Mr. Junaid (Brand Manager-LG)
Mr. Sheraz Shaukat (Marketing Executive-CSD)
Mr. Ruhkaam kairinia
Above all I am especially thankful to my GOD who always helped me out in tough times
and helped me in compiling this Report.
Omer Latif