WAVES Cool Industries

Contents

introduction
HISTORY
Cool Industries (Pvt) Limited, was established in 1973 and grew to a leading Home Appliances manufacturing Company in Pakistan, in a very short span of time. This was achieved by the tireless efforts of our devoted Management, highly motivated professionals and dedicated team work, committed to excel in the quality and services. Cool Industries (Pvt) Limited, has highly skilled professionals, responding rapidly to the market needs. With the most modern and high-tech CAD manufacturing facilities, our products capture over 80% of the local market for Refrigerators, Deep Freezers, Air Conditioners and other home appliances. The company manufactures Refrigerators, Deep Freezers, Air Conditioners, Washing Machines, Microwave Ovens and many other quality home appliances, with the production ratio exceeding the overall production of Pakistan's appliances manufacturers. Our brand name Waves is undisputed leader in the market, both in residential and commercial sector in Pakistan. Waves are also exporting its products to Middle East and Central Asian States including Afghanistan. Our company is known for its commitment to the latest technological advancements in design & manufacture. Owing to the engineering experience and skills available, the identification and adaptation of new techniques, materials and know-how, our production processes and products requires a minimal lead-time. This flexibility in our production has given us distinguished edge over our competitors in the market. We have brought into the market a 100% indigenously designed and manufactured split air conditioning system with different innovations and choices, which has attracted a large customer base. The company is fully committed to protecting the environment and has been awarded a substantial grant by the World Bank to phase out ODS (Ozone Depleting Substances) its production processes. This is an ongoing activity and is being given all the importance it deserves for a timely and successful competition. STRUCTURE OF ORGANIZATION: waves is fully Decentralized hierarchy system prevails in the whole organization. OFFICE LOCATION: 9 Kilometers, Hanjarwal, Multan Road Lahore Pakistan.

NUMBER OF TOTAL EMPLOYEES: In seasons 1500, and out seasons are 1300
employees work in the company NATURE OF BUSINESS: Productions of Home Appliances

TYPE OF OWNER SHIP: Private Limited Company KEY PLAYES: board of director and the administrations are the key players for
waves cool industry

Vision, mission and objective

VISION STATEMENT
Strive to accomplish the best, which seems unachievable to others, utmost dedication, hard work, enthusiasm in leadership is the modern

MISSION STATEMENT
Aim to serve the needs of our customers and build value for our stakeholders by continuing to remain

OBJECTIVES OF COMPANY
To provide customer a prompt, quality product and reliable services at their doorstep. Repairing of Refrigerator, Repairing of Washing Machine, and Microwave oven. Waves after sales service is the only service who provide the facility to customers by meeting complaints.

External and internal assessment

PESTLE ANALYSIS:
POLITICAL ANALYSIS:
Political conditions of Pakistan have been very unstable for the past decade and are still on the verge of decline. Almost every industry of Pakistan has faced a striking disaster during this period. This situation has given a high rate boost to the already present problems like energy crisis, low living standards of the people, unavailability of basic needs and much more. Waves is working in home appliance industry that highly depends on the energy availability, production fulfillments, trading and transportation facilities etc. for all these issues the present governments policies are very uncertain and unclear. There cant be seen any prominent efforts by the government in resolving the energy crisis issue. This can lead to high production costs for the home appliances industry. However, import and export of such products has very much been encouraged by the government and has encouraged many foreign investors to invest in this industry. But due to unstable security conditions of Pakistan this effort is not being fruitful up to the mark. Many already working foreign companies are trying to move out of Pakistan. One of the basic reasons of this attitude also lies in the fact that the present government has increased duty rates on these products. In 2009, these rates were from 25% to 35% on air conditioners/ refrigerators, electric fans, toasters, micro wave ovens; televisions etc while 20% to 30% rates on electric ovens/ cooking ranges. Presently they have been much more increased. This can cause a barrier for the new comers to enter in this industry and a difficulty for the already present companies like waves. Other governments like that of china are also providing manufacturing facilities at low cost. This can reduce manufacturing cost for this industry due to cheaper labor, electricity availability and cheaper manufacturing units. Therefore a political analysis for this industry shows that the political environment is not so favorable for this industry to flourish.

ECONOMICAL ANALYSIS:
Pakistans economic conditions started to drop in the early 2007 and up to 2010 they have faced a large set back due to the depressed consumer credit market, slow progress of public sector programs, inflation, reduction in subsidies, security threat, instability in the state and energy crisis.. The exports declined by 6% and imports by 10%. The only thing that became a silver lining was the increment in remittances by 22%. Shortages of energy and power do not let the boom enter into the industrial sector so home appliance industry had to suffer. In addition the sanction applied by IMF on different sectors creating a hurdle. This resulted in unemployment and

services sector decline. Because of security crisis the graph of investment does not take any surge. The beginning of declining in core inflation is a hopeful factor but the domestic inflation is on peak. The poverty in country rise Pakistan has the highest population growth. The largest population represents a large potential market for goods and services yet the condition are deplorable. All these factors have affected home appliance Sector. The buying powers of people have declined. Due to inflation manufacturing costs have increased. The value of money has decreased so investing in such an industry is not that much favorable economically.

SOCIAL ANALYSIS:
Pakistan is a country where status differentiations are very much in and every status level has its own lifestyle and buying patterns. Mainly the population of Pakistan either belongs to lower class, middle class or elite class.

CHANGING LIFESTYLES:
Although the lifestyle of every class is changing at a fast pace, still the social factors affecting these lifestyle are same like always. People are more money and time oriented now. They are moving from traditional values towards western lifestyles. Now people prefer living separately than in joint families. As family size has decreased so more and more homes are required for each separate family and hence more are more home appliances are needs in turn. So it overall increases demand for home appliances products and especially for freezing unit industry.

BUYING PATTERN
In Pakistan people mostly purchase home appliances at the time of occasion like marriages as dowry item and it has changed the sales patterns. Now the sale for freezing unit is not seasonal but it is sold throughout the year. The availability of different products has also affected the buying patterns

INCOME DIFFERENCES:
Home appliance industry is mostly profitable in Pakistan by either the elite class or the middle to some extent. For elite class affording latest home appliances models is never a problem rather it suits their status consciousness. It is also somehow convenient for the middle class to afford such luxuries. But in the lower class, home appliance industry cant find much potential customers.

BASIC NECESSITY FOR LIFE:

More economic development made it possible that people are considering freezing units as a basic necessity of life, and it overall increases demand for this industry

HOT WEATHER:
Pakistan is a country where people enjoy all four seasons, but summer stays more than others seasons, and overall climate in summer is very hot. People now purchase more freezing units in summer for their convenience and it also increase in demand.

GROWTH IN POPULATION:
Pakistan is among the top ten most populous countries of the world, increase in population also increase in demand for the products and it also increase demand for freezing unit industry.

TECHNOLOGICAL ANALYSIS:
The technology of this industry has taken a very positive change. Older Refrigerators were used to be manufactured by a type of gas called Freon. Freon is the brand name of the gas. This gas chemically is called chlorofluorocarbon or CFC. This gas was disastrous for the environment and was said to damage the ozone layer if leaks from refrigerators. Today's refrigerator technology is changing day by day. Globalization has made possible to transfer things/products from one country to other within days and this is happening because of fast mode of transportation and communication. Modern refrigerators don't use CFC because CFCs are harmful to the atmosphere if released. Instead they use another type of gas called HFC-134a, also called tetrafluoroethane. HFC turns into a liquid when it is cooled to -15.9 degrees Fahrenheit (-26.6 degrees Celsius). A motor and compressor squeezes the HFC. When it is compressed, it heats up as it is pressurized. When you pass the compressed gas through the coils on the back or bottom of a modern refrigerator, the warmer gas can lose its heat to the air in the room.

Some appliances includes micro processor based control that allows adaptive defrost Certain parameters are monitored and the control software determines the moment of defrosting. In freezing units, products are made energy efficient keeping the view that o o o o People have to buy both refrigerators and deep freezers for capacity purposes. Refrigerator like automatic operation for intelligent operation is a new feature. Vitamin C technology is using for fresh food storage. Slide-out shelf for easy food access is new trend.

Automatic problem detecting and warming system, door cooling warning system, optimized condensing system. Water dispensers are also attached with new units. Nowadays industry is focusing on low noise operation and low energy consumption products.

LEGAL ENVIRONMENT
Home appliance industry is particularly looked upon legally when it comes to energy usage, recycling methods and anti dumping. Legally this industry is bound to consume energy and manufacture energy dependent products effectively and efficiently. In a country like Pakistan where there is already energy crisis, a company like waves has to take care by providing its customers with such products that cater this problem it their own way. Moreover recycling methods are also very important. Recently, introducing some environment friendly techniques for refrigerators have helped this industry flourish. Law also forbids dumping in this industry i.e. The export of a product at a price (export price) lowers than the price it normally charges on its own home market (normal value). Dumping can harm the domestic industry by reducing its sales volume and market shares, as well as its sales prices. This in turn can result in decline in profitability, job losses and, in the worst case, in the domestic industry going out of business. Therefore it is not allowed.

ENVIRONMENTAL ANALYSIS:
Environment of Pakistan is although certain and precise but not for business industries. Pakistan enjoys all 4 seasons but primarily summer stays more. Therefore home appliance industry particularly manufacturing freezing units can be very profitable in this environment. However climatic disasters like the earthquake of 2005 and recent flood disaster has turned this environment very unfavorable for this industry. These disasters where on one hand have turned the lives of people towards economic crisis have also damaged many established businesses, created transportation problems, and hence the production costs.

MICHAEL PORTERS FIVE FORCES MODEL:

POTENTIAL DEVELOPMENT OF SUBSTITUTE PRODUCT:

The potential development of substitute products is very high in the market and many companies are working on same business in Pakistan e.g. DWALANCE, PEL, HAIER. But the WAVES has prevented the threat of substitutes by offering diversified products like COOL Bank and TRIPLETS and ICE MAGICA.

POTENTIAL ENTRY OF NEW COMPETITOR:

HIGH INVESTMENT:
Threat for new entrants is high in this industry, partly due to the fact that this industry is a lucrative industry and is very attractive for foreign companies. But in order to really make a mark in this industry, you need to have strong investment and funding.

FOREIGN BRANDS:
Foreign brands like LG, HAIER etc. are a big threat for local brands. The quality and brand image of foreign brands is high as compared to local brands

RIVALRY AMONG COMPETING:

We can examine the rivalry by different aspects: Market share of any company tells about its strong and weak position in the market, and in refrigerator industry. Dawlance and Waves are close competitors.

DAWLANCE is a market leader in refrigerator with 55% share. PEL has 24% market share Waves has 17% market share. 4% shares are others.
To defeat the competitor Waves works on different strategies.

INNOVATION:
Waves Company believed on the innovations so Waves has proudly introduced miraculous "Cool Bank Technology Waves Cool Bank technology facilitates not only the consumers but also the country in its need to economize scarce energy resources. The Cool Bank refrigerators and deep freezers consist of double back up system, one stores electricity and other stores cooling. In case of power failure or load shedding, Cool Bank provides internal light and cooling to maintain temperature up to 5 hours. Contrary to Cool Bank, common refrigerators and deep freezers loose their cooling rapidly within 20~30 minutes and food gets spoiled.

PRODUCT RANGE:
There are many products of Waves Company like refrigerators, deep freezers, air conditioner, visi cooler, microwave ovens, washing machines and home appliances .

VERTICAL INTEGRATION:
Waves network of authorized dealers spread all over Pakistan. Waves distribution channel is through the retailers and his outlets.

BARGAINING POWER OF CUSTOMER:

There are so many products and brands are available in market at different prices and the bargaining power of the customer will be high due to many alternatives products are available in market, the customers preferred to purchase lower price products while the other if there are few brands in the market, then the customers power will be weak position for purchasing due to this the companies raises the prices of products and earn higher profits. If we see the Pakistani industries the bargaining power of the customers is very high due to the variety of products are present in the market at different prices. So the customers can choose the products according to his requirements.

BARGAINING POWER OF SUPPLY:

Suppliers can be viewed as a threat when they are in few numbers in the market. In that case, the suppliers are able to force up the price of inputs. The after effects of that can result in the reduction in the quality of inputs. If the suppliers of Waves Company are weak then the industry will force the suppliers to reduce the prices of inputs or product and demand for higher quality. If the suppliers are selling the products that have few substitutes and differentiated from others, then the suppliers are always in good bargaining position

EXTERNAL FACTORS EVALUATION (EFE) MATRIX OF WAVES COOL INDUSTRY

External factors are extracted after deep analysis of external environment. Obviously there are some good and some bad for the company in the external environment. Thats the reason external factors are divided into two categories opportunities and threats.

External Factors Evaluation of Waves Cool Industry:

OPPORTUNITIES Establishing existing market Growth in a home appliances market Home appliances as the necessity Trend of dowry Promotion campaign THREATS Country economic conditions High investment Input policies Political crisis Smuggling of inventories TOTAL WEIGHTS (W)
.10 .09 .20 .07 .05

RATE (R)
3 4 4 2 2

SCORE (W*R)
.30 .36 .80 .14 .10

WEIGHTS (W)
.16 .20 .05 .05 .03 1.00 TABLE (EFE matrix)

RATE (R)
3 3 3 1 1

SCORE (W*R)
.48 .60 .15 .05 .03 3.03

Waves Cool Industry has scored 3.03 in the EFE Matrix. This score shows a good standing of the business in the market and this Industry have a visionary leadership to avail the opportunities and also have competency to face the threats.

INTERNAL FACTOR EVALUATION (IFE) MATRIX OF WAVES COOL INDUSTRY

Internal Factor Evaluation (IFE) matrix is a strategic management tool for auditing or evaluating major strengths and weaknesses in functional areas of a business.IFE matrix also provides a basis for identifying and evaluating relationships among those areas.

Internal Factors Evaluation of Waves Cool Industry:

STRENGTHS After sale providing service Highly skilled management Use of modern technology Wide range of products Clear hierarchy Approved quality standards Strong brand names Strong slogan WEIGHTS (W)
.07 .09 .09 .08 .07 .06 .09 .07

RATE (R)
4 3 4 3 3 3 4 4

SCORE (W*R)
.28 .27 .36 .24 .21 .18 .36 .28

WEAKNESSES Absence of HRM capability Centralization of power Promotion campaigns Lack of MIS system Poor distribution in rural areas TOTAL

WEIGHTS (W)
.07 .06 .09 .08 .08 1.00

RATE (R)
1 2 2 1 2

SCORE (W*R)
.07 .12 .18 .08 .16 2.79

TABLE (IFE MATRIX)

Waves Cool Industry has scored 2.79 in the IFE Matrix. This score shows the industry is internally strong position.

COMPETITIVE PROFILE MATRIX OF WAVES COOL INDUSTRY

Competitive profile matrix is an essential strategic management tool to compare the firm with the major players of the industry. Competitive profile matrix shows the clear picture to the firm about their strong points and weak points relative to their competitors. The best thing about CPM that it includes your firm and also facilitates to add other competitors make easier the comparative analysis.

Competitive Profile Matrix of Waves Cool Industry:

CRITICAL SUCCESS FACTOR Customer satisfaction Innovation After sale services Quality Of Offered Products Largest selling brand No of service centers TOTAL
WEIGH T(W)

WAVES
RATING (R) W.SCORE (W*R)

PEL
RATING (R) W.SCORE (W*R)

DAWLANCE
RATING (R) W.SCORE (W*R)

0.20 0.20 0.20 0.15 0.15 0.10

2 4 3 3 3 4

0.40 0.80 0.60 0.45 0.45 0.40

4 3 2 4 4 3

0.8 0 0.60 0.40 0.60 0.60 0.30

4 4 3 4 4 4

0.8 0 0.80 0.60 0.60 0.60 0.40

1.00

3.10

3.30

3.80

TABLE (C P MATRIX)

In CPM, we compare WAVES with the PEL and DAWLANCE. We get the different rating for both the industries and we can also evaluate the results very easily. By analyzing these facts and figures, we can say that DAWLANCE and PEL have a better standing in the marketing than WAVES.

Core competencies
CORE COMPETENCIES ANALYSIS:
Core competency is a specific factor that a business sees as being central to the way it, or its employees, works. It fulfills two key criteria It is not easy for competitors to imitate It can be leveraged widely too many products and markets.

INNOVATION:
Unique and compelling solutions valued by our customers and aligned to our brands create competitive advantage.

OPERATIONAL EXCELLENCE (OPEX):

A methodology for solving problems & continuous improvement of products & processes through pursuit, acquisition, and utilization of knowledge using critical thought and planned experimentation helps us achieve operational excellence. By introducing different models and uniqueness in our products we become ahead in market.

CUSTOMER EXCELLENCE:
Excelling the customer expectation from the company, its brands, products and services are a three-step process. The three steps are: Know a customer, be a customer, Serve a customer. Knowing a customer helps us know who our customers are, how to treat them, how we add value, and what the drivers of brand loyalty are. This information is gathered from the customer's data base history. This way we are better able to customize products for them and recommend the right product to solve problems. Being a customer is important to share customer knowledge and insights, drive actions based on customer insights, be passionate about our brands and customer loyalty and provide a positive voice for our brands. We show empathy for customers and seek to resolve their problems by creating consistent customer touch-points, showrooms and customer care centers with our endeavor always being to provide unique solutions for the customer. Our products mostly for middle class people because we have economical prices strategy.

KEY SUCCESS FACTROS:

Waves is ahead from its competitors due to its different factors

INNOVATION:
Waves always introduce new products and designs in markets after a short period of time to differentiate its products from competitors As during load shedding period in Pakistan waves introduces cool bank refrigerator in Pakistan which can work 6 hours in electricity absence. The triplet refrigerator was introduce after that ice magic and many more so these innovation keep waves ahead from competitors .

QUALITY CONTROL:
waves products are checked before dispatching and a quality control team recheck it again randomly after packing.

CUSTOMER CARE CENTER:

waves are having different customers care centers, which help its customers to choose appropriate products according to their need and guide people about their products and keep them update about their innovation in products.

SERVICE CENTER:
waves service centers are located at different locations which give them advantage to keep in touch with their customers problems. Waves are having 17 service centers in all major cities of Pakistan 154 franchise workshops and all over the country with proudly having Pakistan largest Service network.

HIGH TECHNOLOGY PRODUCTIONS:

waves industry is having a research and development department which is always tries to introduce new technological products in markets and they keep up to date with their customers requirement. Waves have also having the biggest network of Split Air-conditioner installation and after sales department.

Corporat culture
Waves have highly qualified Engineers and technical staff always ready to give you prompt services. Waves corporate culture has been widely recognized by waves employees as innovative value created by waves senior management. Innovation is the core of waves corporate culture, Waves unique cultural system cultivated and developed over the past 7 years. Waves corporate culture is guided and developed by advanced concept, innovative strategy, efficient organization, creative technology and market orientation, which have enabled waves to grow swiftly with business expansion all over Pakistan. Waves corporate culture features recognition and participation of all employees. Today, waves is ambitious to gain worldwide recognition. To achieve this magnificent goal, waves has all its employees involved in realizing their duties toward the company. Waves also manage international trips to their employees as bonus.

Management strategy
HRM
Waves is one of the leading brand in home appliance industry after Dawlance. It has been competing for the market share by producing the best ever products using the latest technological advancements in design and manufacture. Waves undisputed name is not just by its product quality but its highly skilled workforce as well. As far as its human resource department is concerned, waves has no proper HRM department. Although focuses on the proper hiring of the employees but all this is done under a combined roof of the administration, there is no separate HRM department. Waves to gather the cream of skillful workers focuses its team to be Production efficient Market efficient Its technicians have to be fully aware of the new trends changing in the market. And also the new techniques used by the competitors as well so that waves can at the right time produce a counter for the competition. About this, it however full care of while hiring employees.

ADMINISTRATION
Waves is being administered by a collaborative effort of every department. However the entire administration is under the supervision of a managing director M.D. He in fact deals with the entire recruiting process while hiring the employees. Then comes the Admin manager who takes of the payroll system and other benefits of the employees. He uses his own points of views while deciding policies about the reinforcement of the employees.

DECISION MAKING
The decision making at waves cool industries is highly centralized. All the policy formation and strategy formation lies with the top management. They are authorized for the important decision making. The operating authorities are given to the middle management and it is bound to take work from the lower lever workforce. The lower level workforce is only bound for the operations and tasks. However 30-40% of the lower level decision making regarding simple operations can be done by the lower management.

TQM (Total Quality Management):

The policies that waves is using for TQM are that first of all waves has created a quality assurance team This team is responsible for checking every product at required stags of manufacture and at all departments.

The techniques they use are

SAMPLING CHECKING
At sampling checking stage the products are checked while being manufactured and it is assured that no product is faulty.

RANDOM CHECKING
At random checking stage the products are taken at random for an assurance check to see whether the products are accurately manufactured or not.

MOTIVATION AND INCENTIVE TECHNIQUES:

Waves provides monetary bonuses to its deserving employees and also annual bonuses. It also gives medical facilities and ration cards to employees in addition to monthly salaries and payrolls. Deserving employees are also given timely promotions to the above positions for their motivation.

Market analysis
SEGMENT AND TARGET MARKET:
A market segment is a sub-set of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function.

DEMOGRAPHIC SEGMENTATION:
Demographic includes age, gender income levels. Waves is segmenting their market demographically. It is providing household items like refrigerators deep freezers, microwave ovens washing machine toasters which are mostly used by house wives

BEHAVIORALLY SEGMENTATION:
Secondly it is segmenting market on the bases of different life style of people . refrigerators and freezers are now become necessity of everyones life There is a concept of dowry in our society and people buy washing machines ,air conditioners ,ovens and refrigerators as a dowry .

TARGET MARKET
Our target market is basically housewives and middle income families. Marketing 4 P`s: Marketing decisions generally fall into the following four controllable categories:

Product Price Place (distribution) Promotion

PRODUCT:
The term "product" refers to tangible, physical products as well as services. Cool industry has been providing a large number of products which are mentioned below. Deep freezers: In deep freezers they have introduce TRIPS,,SLIDE DOOR GLASS DOOR & UPRIGHT Refrigerators: They are providing a wide variety of refrigerators like COMBO, ICE MEGICA< DIRECT COOL SERIES. Ovens: In oven series they are providing micro wave ovens with or without grill. Air conditioners: In conditioners they have introduced FLIP SERIES. Washing machines: They have introduce washing machines with jell water fall technology. Also they have a large product line including toasters, iron, sandwich maker and blenders.

PRICE:
This is how much you charge for your product or service. Varied pricing could occur according to geography, time frame, or volume. Additionally, with a service, price can be varied according to level of service. Waves has followed product line pricing Where there is a range of product or services the pricing reflect the benefits of parts of the range. Their pricing strategies are also effected by change in any season like as the winter comes the demand of their refrigerators and deep freezers are low.

PLACEMENT:
Distribution is about getting the products to the customer. Waves has a network of authorized dealers spread all over Pakistan. To provide customer a prompt, quality and reliable services at their doorstep Waves has a largest after sales service network through out the country. By having seventeen (17) own service centers in all major cities and one hundred and fifty-seven franchised workshops. Waves factory is situated at 9 Kilometers, Hanjarwal, Multan Road Lahore Pakistan they have also braches in 14 cities of Pakistan.

PROMOTION
Waves promote its products in a great manner. They organize a general meeting with marketing department after every moth in which they discuss the promotion strategies. They are conducting BTL and ATL advertisements

BELOW THE LINE(BTL):

They are having BTL advertisement through bill boards, broachers, banners and newspapers

ABOVE THE LINE (ATL):

They have also advertised their products through advertisements on electronic media like TV and radio. Launch our new products split Air Conditioners, Washing Machines, Microwave Ovens and other domestic appliances with aggressive advertising support

MARKET SHARE
COOL Industry is having 45% of the market share while PEL is having a 50% of market share and Maintains 75% ~ 80% share of Deep Freezer sold in the market. Increased the sale of refrigerators by 40%~45%

USPs:
Waves has a unique selling preposition .Waves is always into innovation like they made cool bank In case of power failure or load shedding, Cool Bank provides internal light and cooling to maintain temperature up to 5 hours. Contrary to Cool Bank, common refrigerators and deep freezers loose their cooling rapidly within 20~30 minutes and food gets spoiled. .and its product MAGICA freezer which freezes food like meat, chicken, fish and also makes ice in no time. More over waves knows the customer needs. it knows what customer wants .They are very good in after sale service .they respond to customer with in 48 hours of installment .They also have an online system of selling there product .There is a site of waves where they sell there products online .

COMPETITIVE ANALYSIS
If we compared, WAVES with PEL and DAWLANCE which are our direct competitor. The following result comes.

Customer satisfaction:

Customers satisfaction could be the main key source of success. Waves provides a large number of diversified products to its customer which satisfied its customer in every manner and also they have online feed back system. They promptly respond toward the customers problem. And their after sale service centers also provides repairing service to the customer in shortest possible time. Waves after sale service also provide the facility to customer of lifting their units from residence to service center and delivering within 48 hours.

Innovation:
Waves also have a huge research and development department which continuously producing many innovative products. As compare with their competitor they have provided many innovative products like cool bank and MAGICA

After sale service center:

By having seventeen (17) own service centers in all major cities and one hundred and fifty-seven franchised workshops. After sales service team consist of Engineers and highly qualified staff with great professional approach due to this reason customer feels confident, once their appliance are being maintained while their competitors have service centers which are not under the direct approach of every customer.

Main Marketing strategies and market positioning

Cool Industry has its own dedicated marketing and professional teams capable of analyzing the market trends, envisioning the opportunities, meeting the assigned challenges, develop efficient policies and strategies as well as effective promotional plans. Owing to the training provided, the marketing professionals are fully competent to meet targets and capture new markets by adopting ongoing market evaluation techniques. Its main marketing strategy is their concept statement. Is has a very strong concept statement which is Naam he kaafi ha which always deliver a positive sense to customers. They arrange events in Pc in which they invited their loyal as well as regular customers and take feedback. They have wide range of distribution channel. They respond to their customers when there is complaint .they respond within 48 hours after complaint. They are promising a quality product with their customers .All of their raw material comes from abroad 1. They are maintaining third position in the market having share of 45%. 2. We have highly qualified Engineers and technical staff always ready to give you prompt services through all over the country with proudly having

Pakistan largest Service network. Seventeen service centers in all major cities and 154 franchise Workshop

Financial strategies
Statements income statements, cash flows, balance sheet
All Amounts are in Pak Rupees and in 000

Cost / Expenditure Main

Administrative expenses, Rs. 609,004,

Profits
Profits of 2009 is Rs. 260,546,000

Revenue
In 2009 revenue is Rs14, 621,612

Ratios
Amounts are in Pak Rupees and in 000

Liquidity ratio:
Net working capital/ total asset
Net working capital = current asset- current liability
8,664,551- 6,553,832 = 2110719 2110719 / 19,070,035 0.110

EPS (EARNING PER SHARE):

Net income/ shares out standing
260,546/210552

1.23

ROI (return on investment)

Net income /total investment
260,546/ 21,771 11.96

Turn over rations:

Inventory turn over:

CGS/ average inventory

11,283,796 /3,258,607 3.462

Receivable turn over ratio:

Sales/ account receivable

11,283,796/12,671 =0.0000789

Asset turn over ratio: NWC turn over

Sales/ NWC
11,283,796/2110719 =5.34 Fixed asset turn over

Sales/ net fixed asset

11,283,796/10, 303, 53 10.951 Total asset turn over

Sales/ total asset

11,283,796/19,070,035 =0.5917

Other strategies
Research and development:
The Research and Development in Cool Industries is supported by state-of-the-art environment, with high-tech & fully computerized CNC machines with computer aided design facilities. The continuous updating and advance-training sessions held under Human Resource Development Programs are the key strengths of our Research and Development Department. Research development is very strong in the cool industry. As the company deals in electric appliances so rapid and effective research and development is essential to be fit in the market because there is a tough competition in appliance industry there are many direct and in direct competitors Local and international. So waves is having a very effective and active R&D department. Their different products like ICE MAGICA, COMBO, COOL BANK are the example of their latest research and development. They are also introducing SLIM refrigerator for small families and UPRIGHT DEEP FREEZERS. Which stand vertically and its especially design house wives those who have backache they don`t have to bed to keep things in it. They have also introduced glass door freezers.

Procurement:
Cool industry uses latest technology equipments. They have a proper an efficient procurement department which deals with all purchasing decisions. They have procured 80% of the raw material from foreign markets. They have also procured parts and moulds local markets also. They have also imported CRC sheet(coal rolled coil). They are also providing full range of their latest product on their service centers. The procurements of WAVES are the stationary, furniture, computer systems, the documents and other important things which are essentials for manufacturing and other purposes.

Production:
As highly skilled professionals, With the most modern and high-tech CAD manufacturing facilities, our products capture over 80% of the local market for Refrigerators, Deep Freezers, Air Conditioners and other home appliances. The company manufactures Refrigerators, Deep Freezers, Air Conditioners, Washing Machines, Microwave Ovens and many other quality home appliances, with the production ratio exceeding the overall production of Pakistan's appliances manufacturers.

It aims to Reduce Wastage by 2% in Production Sections. Cool Industries (Pvt) Ltd. has highly skilled and professional engineering and technical team coupled with the most advance and state-of-the-art manufacturing facilities. These professional and technical qualities enabled Cool Industries to capture a substantial share of the market. The advance nature of our manufacturing & marketing cycle has led us to develop the most sophisticated and highly effective, material ordering and inventory management system saving cost and cutting financial overheads as well. Waves have introduced complete new range of Digital micro wave ovens equipped with CRS technology, Fashion Color electric Iron, easy & quick toaster, fine & fast blender, twin Tub turbo contract Jet washing machine with Dryer. Waves split AC are energy savers and provide strong cooling because of its T4 compressor.

Control procedures
CONTROL DEPARTMENTS
There are 6 major CONTROL departments in waves they are :Marketing control Department Finance control Department Production control Department Human resource control Department Quality control Research &Development control Department

MARKETING& SALES DEPARTMENT

This department is headed MANAGING: SAADAT SHAH Then Further down in hierarchy there are:Brand Managers Manager Distribution Credit Customer service officers Institutional sale Manager

They are headed by Regional Sales Manager (RSM)

The sales policies are recommended by head office for all regions. The policies for customer service are defined by General Manager Customer Service at head office. Targets are given to regional sales Manager of each particular region and then the RSM gives further target and incentives to sales officers to achieve the demand targets. Marketing department controls the 4Ps in the company i.e. Product, Promotion, Placement, and Pricing. They are also responsible for the alteration and Modification in the different brands of the company and of new product e.g. they can suggest color change, size of product etc. which is being demanded by the customers. They try to bring innovations in the products to make them attractive for the customers and to compete with the competitors i.e. Dawlance, General, and PEL etc. There are print as well as electronic media for promotion activities.

FINANCE DEPARTMENT
The department is controlled by general Manager finance, this department is divided into 3 sections:Finance Accounts Credit Control

Finance
Finance deals with Banks

Accounts
Accounts deal with costing system, Billing & booking transactions as well as internal auditing.

Credit Control
This section of finance department deals with Credit and recovery procedures.

PRODUCTION DEPATMENT
This department looks after the manufacturing of products. This department is given targets by top management to produce a specific number of products which are ascertained by previous sales data and market conditions. This department is responsible for quality control as well i.e. it sees there are no defects or any shortcomings in the product. It also overseas new technologies and also remain updated regarding any new machinery or other equipment for better product performance.

PLANT CAPACITY AND ACTUAL PRODUCTION

Sanctioned Installed Capacity Electric motors 25,612 HP Transformers 1500 MVA Energy Meters 600,000 NOS. Air conditioners 36,250 TONS. Refrigerators/Deep- Freezers 89,525 CFT Compressors 360,000 NOS. Actual Production Nil 351 431,862 3,494 766,399 Nil

MVA NOS TONS CFT

HUMAN RESOURCE DEPARTMENT

This department overseas the selection criteria for employees i.e. it sets different guide lines for selection of employees. After selection of employees it also offer the training and to upgrade their skills.

The head of HR department is called HR manager.

FUNCTIONS
Recruitment Selection Training Transfer firing decisions Labor Affairs Staff welfare

Ma npower pl anni ng f or next 5 years

RESEARCH & DEVELOPMENT DEPARTMENT

This is the most important department regarding the future of company as a market leader this department is constantly in-touch with market to know about customer preferences and specification for products. After through analysis of customer expectations this department then gives its recommendations to the top management to being changes in the product for market success. This department conducted to survey in market to get information. This department is also responsible for bringing new technologies in the products. Our report concerns about home appliances sector of PEL. There are three main categories of products. Refrigerator Air Conditioner Deep Freezers Split Washing Machines microwaves oven

QUALITY CONTROL DEPARTMENT:

Cool Industries is heading towards quality documentation and other groundwork is being done to achieve this milestone.

QUALITY SYSTEMS DEPARTMENT:

The Company achieved ISO 9001: Certificate by June 2000.

COMPANY QUALITY POLICY:

We believe in timely provision of cost effective & quality products to achieve complete satisfaction of our valued customers while maintaining our efforts for constant improvement of our quality and services through research and development as per customer need.

We are committed to improve our skills in all areas to achieve excel by providing the best working environment and training for the development of our Human Resources.

QUALITY IN SERVICE AND COMMITMENT TO OUR CUSTOMERS:

Keeping in mind our over-riding commitment to our valued customers, we pay special attention to the quality of after sales support to dealers, and service to the valued customers. A comprehensive network of over 500 authorized WAVES dealers and service centers are fully geared up to meet all customers needs.