You are on page 1of 13

JS Investments (Proposal)

Research Proposal: JS

Investments Limited

Group Members Ahsan-ullah Akbar Aqil Imran Adeel Haider Imran Farooqi Jibran Wasiq Najeeb Swaleh Rafay Anwar Waseem Ahmad BD-66/2004 BD-21/05 BD-41/04 BD-04/03 BD-28/05 BD-18/05

Course: Managerial Policy Instructor: Dr. Mahnaz Fatima Institute of Business Administration

JS Investments (Proposal)

Table of Contents

TABLE OF CONTENTS ..........................................................................................................................2

JS INVESTMENTS LIMITED (RESEARCH PROPOSAL) ..............................................................................3

INTRODUCTION TO THE COMPANY ..............................................................................................................3 RESEARCH PLAN ....................................................................................................................................3 TENTATIVE TABLE OF CONTENTS ................................................................................................................4 TENTATIVE STATEMENT OF MAJOR PROBLEMS ..............................................................................................5 TENTATIVE STATEMENT OF MINOR PROBLEMS ..............................................................................................5

REFERENCES ......................................................................................................................................8

APPENDIX ..........................................................................................................................................9

APPENDIX A: ORGANIZATIONAL CHART .......................................................................................................9 APPENDIX B: TENTATIVE INTERVIEW SCHEDULE ........................................................................................... 10 APPENDIX C: STATEMENT OF CONTRIBUTION .............................................................................................. 11

JS Investments (Proposal)

JS Investments Limited (Research Proposal)


Introduction to the Company
JS Investments Limited (formerly JS ABAMCO Limited) was incorporated on February 22, 1995. It undertakes investment advisory and asset management services, and is active in the Investment Finance Services, along with being a Pension Fund Manager. It is listed on Karachi Stock Exchange (KSE) since April 19, 2007 with the symbol JSIL. JSIL is a part of the Jahangir Siddiqui Group, one of Pakistans most diversified and prestigious financial institutions. Its founding partners also include INVESCO PLC (which manages assets in excess of USD 370 billion) and International Finance Corporation (IFC). Some important points to consider about JSIL are: First private sector asset Management Company in Pakistan. Managing the largest fund size (over PKR 35 billion). First asset Management Company with AM2+ Asset Management Intrinsic

rating by PACRA.

Research Plan
The research will be conducted over a period of approximately three months. Both secondary and primary data sources shall be used for absolute quality. To evaluate the financial performance of JSIL and to perform competitive analysis, we will mostly be looking into secondary data. These include the accounts of the company and its major competitors1, websites of JSIL2, its major competitors and the MUFAB3, Asset Management Industry reports published by the MUFAB and various asset management firms and other relevant data sources.

http://www.mufap.com.pk/Members%20Address.htm http://www.jsil.com

JS Investments (Proposal)

For a functional analysis of JSIL, we will meet the heads of the various business units and a few middle management personnel. The agenda would be emailed to the interviewee prior to the meetings in the form of a questionnaire. A tentative interview schedule for the remaining meetings has been prepared and is attached in Appendix. On the basis of the data gathered, we will perform a financial analysis of JSIL, an external and internal environmental analysis and identify major and minor problems facing JSIL. We will then determine strategic alternatives and recommend one strategy which we feel JSIL should adopt to tackle its problems. These contents will be part of a Progress Report which will be submitted on March 8, 2008. Based on the Progress Report and the feedback received on it, a Live Case will be submitted on April 25, 2008.

Tentative Table of Contents


Introduction History The External Environment


-

Economic Social, Cultural, Demographic & Environmental Factors Technological Environment Regulatory, Legal & Political Environment Asset Management Industry in Pakistan Global Asset Management & Investment Finance Challenges

Functional Analysis Investments Finance

http://www.mufap.com.pk

JS Investments (Proposal)

Research Compliance & Risk Management. Marketing & IR4 Function. Business Planning & Development. Operations Human Resource Management Information Technology Sales IFS invest financial services

Tentative Statement of Major Problems


Although there is a vague direction that JSIL has to be the largest asset management company of Pakistan, there are no clear vision and mission statements. This leads to the bigger problem that there is no strategic direction of the company. This is because the asset management business has its roots in brokerage business, which is not managed strategically by the owners: saeths5 Thus there is no shared vision or set directions of the organization.

Tentative Statement of Minor Problems


From the information collected so far, the following have been tentatively explored as the minor problems. 1Lack of knowledge on mutual funds: In Pakistan, people do not know what mutual funds

are. They only know that they can invest their savings with banks, who give meager returns. 2Company awareness: People recognize ABAMCO, but not JS Investments.

Investor Relations

Pakistani Business Jargon which signifies a mindset of typical business entrepreneurs who are reluctant to adopt the best business practices commonly believed and implemented worldwide.

JS Investments (Proposal)

3-

Inefficient system at Call Center & Customer Relationship Management: There is no

system in place to inform of the number of calls a customer made, nature of problems reported, resolution, and the individual of Operations to whom the request was forwarded. It lacks such analytics, which could help marketing department in segmenting customers. Thus useful information is being lost, using which the organization can do a lot. 4Lack of co-ordination between Marketing & IR: IR is not updated with new campaigns

and information that Marketing makes. Thus if a customer calls IR, the IR representative would not be in a position to satisfactorily answer the queries about new products. Such products are usually what Marketing dept. would have already sent to press for advertising. 5Weak sales follow-up system: There is no way to track and follow-up on sales leads that

IR receives. Customers have to wait for days. 6There are no departmental budgets that could be monitored. There is no system to track

the expenses and profitability of a campaign. 7Employee turnover: There is so much competition in the market that people are being

picked away. In two years, they have had three teams of marketing. 8Few Distribution channels: There are not many distribution channels. JSILs funds are

sold at the branches of Citibank, ABN AMRO and Standard Chartered Bank. But these banks do not project JSIL funds very much. There are no flags or marketing material for the customers to know and ask for it. The reason is that there is that banks do not want their customers to withdraw money from them and invest with someone else. They want to earn on the spread and give away very little to the customers. 9Internal marketing is missing: There is no realization yet that the business has to change

its way of doing business, and Marketing has to have a say in how the company functions. If that doesnt happen, customers could be driven elsewhere and JSIL will lose. 10Internal brand awareness: People within the organization are not aware fully of the

products that JSIL offers to its customers.

JS Investments (Proposal)

11-

Lack of creativity/old-style approach: The marketing of mutual funds is growing very

fast. Customers are expecting more from the asset management companies. They are also beginning to realize the importance of brands. Since JSIL is not an established brand yet, people do not have affinity for it. On the other hand, the mindset of the people at JSIL is to focus on corporate and high net-worth individuals. In such a fast pace market, JSIL can lose a lot if it doesnt rid itself of this approach. 12Workflow and Procedural Hassles/ Loopholes: There is no system to facilitate the process

of creating a campaign, its approval from the higher authorities and later by Finance dept. which causes a lot of delay. 13Lack of wide-scale Accounting System: There is no cost accounting system that could

tell the Profit and Loss of a campaign. Furthermore, there is no inventory management system of the marketing collaterals. 14Automation (external): JSILs processes are highly automated and proper checks and

balances are in place but problem arises when they do not get the required information on time in order to perform their work and this is mainly due to lack of automation at our stakeholders part. 15Product development: With the passage of time requirements changes and JSIL has to

keep pace with the change of process, system and procedures accordingly.

JS Investments (Proposal)

References
JS Investment official website: http://www.jsil.com accessed on 10th January 2008 Mutual Fund Association of Pakistan; http://www.mufap.com.pk accessed on 27th January 2008

JS Investments (Proposal)

Appendix
Appendix A: Organizational Chart

JS Investments (Proposal)

10

Appendix B: Tentative Interview Schedule


# 1 Name Surraiya Hasan Position Head of Human Resources Phone 111-222-626 Date and Time 28-Jan-08 05:40 PM Address JSIL Head Office, 7th Floor, The Forum, Block 9, Clifton, Karachi. (Phone) 2 Bilal Rashid Senior Manager, Marketing and Investor Relations 3 4 5 5 Surraiya Hasan Zafar Iqbal Munawar Alam Siddiqui Bilal Rashid Head of Human Resources Head of Operations Chairman Senior Manager, Marketing and IR 6 Manager Compliance and Risk 7 8 Manager Investments Manager Business Planning and Development Manager Compliance and Risk Manager Investments Manager Business Planning and Development 111-222-626 111-222-626 14-Feb-08 03:00 PM 19-Feb-08 11:00 AM JSIL Head Office JSIL Head Office 111-222-626 07-Feb-08 03:30 PM 111-222-626 111-222-626 111-222-626 111-222-626 07-Feb-08 03:00 PM 02-Feb-08 02:00 PM 07-Feb-08 03:00 PM JSIL Head Office JSIL Head Office JSIL Head Office JSIL Head Office, 7th Floor, The Forum, Block 9, Clifton, Karachi. JSIL Head Office 111-222-626 29-Jan-08 12:00 PM JSIL Head Office, 7th Floor, The Forum, Block 9, Clifton, Karachi.

JS Investments (Proposal)

11

Appendix C: Statement of Contribution


Name: Najeeb Swaleh Contribution: Identified alternate organization (Siemens Pakistan) and spoke to relevant people in the organization. Participated in group meetings and task assignments Contributed towards finalizing the research proposal.

Signature:

Name: Waseem Ahmad Contribution: Was part of the initial group discussions regarding the identification of the organization and then its major and minor problems. Researched on the external environment the asset management companies are working in. Worked with the team on preparing the research proposal. Signature:

Name: Akbar Aqil Contribution: Visited the Organization and accessed Mr. Bilal for the interview with the team available. Gathered data on research on the asset management companies already done by Al-Falah Securities Private Limited for analyzing. Was part of the initial discussions with JSIL personnel and discussed about the issues and address JSIL's concerns about the project. Worked with the team on preparing the research proposal.

Signature:

JS Investments (Proposal)

12

Name: Imran Adeel Haider Contribution: Identified the organization and accessed the relevant contact person. Conducted research on the asset management companies and the problems they are facing. Held initial discussions with JSIL personnel to iron out the issues and address JSIL's concerns about the project. Conducted initial interview with Ms. Surraiya Hasan (Head of HR). Facilitated groups meetings and task assignments. Coordinated the interview with Mr. Bilal Rashid and took notes. Worked with the team on preparing the research proposal.

Signature:

Name: Raafay Anwar Contribution: Formulated the tentative table of content needed for the proposal Contributed towards brainstorming of the minor issues concerning JSIL

Signature:

Name: Imran Farooqi Contribution: Participated in the brainstorming session at the start of the project Contributed minor points in the collaborative project document

Signature:

JS Investments (Proposal)

13

Name: Jibran Wasiq Syed Contribution: Participated in the brainstorming session at the start of the project which decided the direction and scope of the project. Participated in all the meetings sessions regarding the project. Participated in the interview with Mr. Bilal Rashid and took notes. Provided collaborative document sharing facilities which enabled all group members to work concurrently on a single project document via the Internet. Made the Research plan, Introduction and final formatting of the proposal.

Signature:

Name: Ahsan-ullah Contribution: Participated in the group meetings and brain-storming sessions Helped identify the project issues and proposal development.

Signature: