Internship Report

ON

Sumitted By: Muhammad Nawaz Hayat MB-10-26

1

preface
This report is submitted in the practical acknowledgement of MBA program. This report is developed from internship and the data from internet in which I have defined about the pepsi & shamim co. it contains work done from June to July 2012.

we offer our regards and blessings to all of those who supported me in any respect during the completion of the report.Acknowledgements I am heartily thankful to my teacher and Pepsi management whose encouragement. 3 . and effectiveness of expression. After writing this report ideally adds to the store of human knowledge and serves as a contribution to future researchers. analysis. Lastly. guidance and support from the initial to the final level enabled me to develop an understanding of the internship and in writing the report about my internship from I have learn a lot because it is a demonstration of my ability in research.

.

............................... 23 Bibliography...........................................................................................Table of Contents Internship Report ....................................................................... 10 Finance Department .................................................................................................................................................................................................................................................................................... (Pvt) Ltd Multan ............................................................................................................................................................................................... 13 Supply chain ................................................. 10 Currently Offering Products .................................................................................................................................................... 10 Objective ........................................................................................................ 6 History of Pepsi Cola in Pakistan ......................................... 10 Research & SIS Department ......... 10 Production Department ................................................................................................................................................................. 15 Management accounts department ........................... 11 Department of banking & finance .................................................. 10 Mission statement ............................................... 16 Process of Recruitment and Selection Chart ...................................................................................... 13 Audit department ................... 15 Accounts co-ordination department ........................ 12 Life insurance.......................................................................................... (Pvt) Ltd Multan ........................................................................... 10 Human Resource Department .......................................................................................... 11 Insurance & supply chain department .................................................................................................. 6 Introduction to Shamim & Co........................................................................................................................................................................................................................................................................................... 10 MIS Department ......................................... 12 General insurance .................................................................................................................................................................. 24 5 ...................................................................................................................................................................................................... 2 Acknowledgements ....................................................................................... 10 Cash Department ............................... 11 My own activities ............................................................................................................................................................................................................................................................................................................................................................................ 1 preface ...................... 20 Suggestions................................................................ 15 HRM department ................................... 10 Sales & Marketing Department ......................... 7 Organizational structure .......................................................... 17 PESTEL FRAMEWORKS ........................ 9 Departments of Shamim & Co...................................................................................................................................................... 3 History of Pepsi Cola ......................................................................................................................................................................... 18 SWOT Analysis.......................................................................

Rawalpindi 4. from a small drug store in the city of North Carolina. 1.5 ounce. 1 in Pakistan in terms of sales wise and in market share.then he started his own production at Marco level and establish his own company. Bred registered this drink. Multan . With the effort of the Sales & Marketing Department. At present. The very first packing of Pepsi was in 16. It is the market leader. Pepsi Cola is No. In Pakistan. In 1985 the design of the bottle has been changed after 20 years and a new and attractive packaging has been offered with two new flavors i. It also changed the chemical formula and decreased its sweetness and calories. The owner of the Drug store Mr. Lahore 2.e. Peshawar 5. Karachi 3. Pepsi got so much fame that it established new plants at a rate of thirty per annum. Teem & Mirinda. there are nine territories where the franchised unit produce and sell PepsiCola. Caleb Bradham prepared a drink. Some of these territories are: 1. History of Pepsi Cola in Pakistan Pepsi cola is being produced and consumed 1n 48 countries of world including Pakistan. In 1932 Pepsi cola has introduced its new packing in 12 ounce. The business expanded and this drink got fame time. But overall in the world Coca-Cola is No.History of Pepsi Cola Pepsi cola started in the January 1898. with the name of Pepsi cola in 1903. which the customer called “the Bred Drink”. In 1909 this company reached to 24 states of America with more than 250 dealers. In 1950 Pepsi cola started has its new Advertising Campaign with the name of “Refresh without Filling”.

7 . Sales supervisor. is one of them that is situated at District jail road Multan. Shamim & co. Islamabad/Rawalpindi. He looks after the stock availability possibility and all the routes covered by the salesman of that distribution. It is a great pleasure of “Shamim & Company” that it was Second Beverage Company of Pakistan that time.6. Shamim & Co. Faisalabad. Mr. Allah Nawaz Khan Tareen was the founder of the company and also chairman. Other franchise of Pepsi cola are situated in Lahore. Sakhar 8.) Ltd.Pepsi cola international franchise Shamim & company covering 18 districts & 135 stations. As for as distribution is conserved company has a very well-establish distribution network covering whole of the franchise areas. There are 9 franchise of Pepsi cola international in Pakistan. Sakhar. (Pvt) Ltd Multan Shamim & company (Pvt. Salesman training is also a main responsibility of sales supervisor. Gujranwala. Karachi. Peshawar and Baluchistan that are describe above. Multan has very committed staff and this is the reason that it captures more than 85% share of market share. it is deal in CSD(carbonated Soft Drinks). Depending on the potential of the town we have one and more than one distribution in each town. Gujranwala 7. Company has now serviced new experienced & competent sales staff & increases this share to 90% and above. and this time one of famous Beverage Company of South Asia. sales officer is responsible for all the activities of the entire distributor. Baluchistan Introduction to Shamim & Co. The company established in 1964. is a franchise of “Pepsi Cola International”. The company was started 1 st production in 1967 that time brand was 7-up 270 ml that is why it is also known as 7-up factory. Faisalabad 9.

Route card with the sales figures of every point on that specified day. . counters and cabin. visi coolers. These are offered to those shops which are producing good sales to promote sales. Every salesman the distribution network is covering a specified area in which all the points and shops are listed in a “Route Card” salesman is bound to fill that. All the services matters of coolers and maintenance and look after of these assets are also the responsibility of our sales force.Company has invested too much money in shape of coolers.

Organizational structure Managing Director Manager SIS & Research General Manager Finance Manager Finance Manager Account General Manager Technical General Manager Sales Manager Production Manager Quality Control General Manager Operations Manager Sales & Marketing Manager Admin Manager Personal 9 Manager Shipping .

fairness and integrity.Departments of Shamim & Co. our business partners and the communities in which we operate. we strive to act with honesty. But the Company is producing 4products:       Pepsi Cola Mirinda 7-up Diet Pepsi Mountain Dew sting Mission statement Our mission is to be world premier products company focused on convince foods and beverages. And in every thing we do. (Pvt) Ltd Multan There are seven main departments of Shamim & Company. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees. . Production Department MIS Department Research & SIS Department Finance Department Cash Department Sales & Marketing Department Human Resource Department Currently Offering Products The first product of Shamim & Company was 7-up.

such as how will an individual or company acquires the money needed to perform a certain act. • • Short term Running finance and cash finance are dealing in short term financing Long term Leasing is dealing in long term. first is operating leasing and second is financial leasing. letter of credit. Operations In Pepsi and Shamim Company the department of banking and finance involve different operations like short term and long term financing. The first and the most basic plan it to train them according to the changing technology and computerized environment. Finance considers the relationship of money to time and risk. Two parties are involved i. 11 . One of the main subsets of finance is the study of credit and banking. Upgrading the plant structure and installation of the new machinery are other plans. as this involves money. loyal and hardworking employees. My own activities Department of banking & finance The study of money and how it is used. There are 2 types of leasing. and risk all together. The company is planning to increase its sales force and development in its infrastructure in the coming time period. lease (to take) and leaser (to give).Objective The company operates through well experienced. time.e. Finance may deal with personal or corporate issues. • In operating lease the ownership is renewed mean after maturity the ownership is not converted. and satisfying their needs and requirements.

Principal portion and markup portion make the rent. There are two types one is direct lease and the other is sale and lease back.Life insurance 2. Co.• In financial leasing the ownership is converted mean at the end of maturity owner owned all the things. Insurance & supply chain department Insurance mean to secure the assets. In Pepsi. In Pepsi all the activities are on financial leasing. 2. there are two types of insurance 1. Checked these details and send to state life. . principal and ending principal are important. date of birth and designation are filed. It is used in foreign. It is also known as documents presented. Lease schedule should be per day.General insurance Life insurance To claim on death. monthly and quarterly basis. Employee name. • Letter of credit (LC) A letter of credit is issued by a bank at the request of an importer and states the bank will pay a specified sum of money to a beneficiary. It is also known as documents acceptance. State life proofed all information and gives the claim amount. It is used in land. on presentation of particular. Claim is renewal after 365 days. did not responsible on health causes. Securities. Two types are used in Pepsi 1. father name. Pepsi have more than 1000 million for approving the lease. At usance. normally the exporter. specified documents. At sight. On the size of the company the terms and conditions are varying for approving the lease e. pledge and collateral terms are used in leasing. installments. How to make the schedule? • • • • Date. markup rate.g.

Pepsi cola mentioned 2 categories A & B. physicians claim form about outgoing and new employees and give it to the state life(bank). Fire insurance having the premium payment receipt (policy). Their premium is high. line manager etc are here and their premium is less. Take the discount. In A category. sum which is insured. Output supplies Input supplies procedure is planned for annually and then divided in monthly and weekly within economic scale. death certificate. Supply chain There are 2 concepts of supply chain in Pepsi 1. pet) . General insurance Two types are here.forecasting on previous basis . . Marine insurance is basically used for those goods that are in transit. e. Planning depends on: .- Group insurance policy having the information like NIC.g premium value is calculated as. In special conditions the premium rate will be differed.Crown corks . executives. In B category. supervisor. marine insurance and fire insurance. Safe from any risk bank take 110% or 120% premium.Production and sale .Caps (liter. basic dealing in supply chain is raw material i.Chemicals 13 . rate and 17% duty. In marine insurance.Current conditions Output supplies are linked with sales and marketing In Pepsi. rate and conditions are changed while all the others things are same. Leasing is not mature the insurance will be given by the bank.e. guards. Input supplies 2.Carbon dioxide gas . middle and generals managers here. do not take discount.

Pet packing material .Pet bottles .For packaging .Glue Supply chain department maintain the documents: Goods receivable notes Invoice Online payment receipt Quality certificate Payments receipt Purchase order Suppliers The main suppliers for different materials are Material Caps Pet Bottles Supplier Mehran Karachi Plasto Bag Hattar (Islamabad) Mehran Karachi Glass Bottles Toyo Lahore Ghani Glass Karachi Cartons Plastic Shells Al Aziz Faisalabad Mehran / Blow Plast Karachi Plasco Pack Hattar (Islamabad) TOT Waves Lahore Ltd Varioline Pak Ltd Crowns Imran Traders Karachi Jillani Traders Karachi .Label .

There is no charge the duty when stock in factory. From this record check the stock in physical condition. In shipping department all the details about empty stock (bottles). All the claims are in written form. MIS. Fuels. They make the purchase order and check that the goods are received then approve the cash bill for payments. Because it having all the information about income and expenses of the company. Management accounts department The main purpose of this department is that to see the operations of the company. And RGI is a running godown. daily allowance and phone expense allowances are the main payments. After paying the duty the stock is stored in warehouses of Pepsi like DPG1. production procedure are the part of the audit department. Management information system inters all the data i. For this purpose minimize the expenses as department wise. filled stocks that are takes and given by the distributers.e.Audit department Basic purpose is to verify the transactions. Different reports are made for keeping the record. The main purpose of this department is to make the budget. In production department all empty bottles are filled and available in EB4 (excise before duty). how much stock is needed for sale. Budget is very important for controlling the expenses of company. Accounts co-ordination department This department works on purchasing the goods. making the bills and payments. Shipping department. DPG2 and DPG3. They make the reports of all activities like 15 .

Basic purpose is to coordination. so that they have ample knowledge about their respective commitments.- Production report Amanat comparison report Raw material report High and low fill losses Daily co2 consumption report Useable caps status report All the brands like 7up. The main functions are given below Recruitment is the process of finding and attracting capable applicants to apply for employment. Although operating managers are often involved much of the recruitment responsibility is of the professionals in the HR department. HRM department HRM is a bridge between employee and employer. . converted in 250ml. pepsi. Recruiters should be aware of the constraints and challenges surrounding the recruitment process before they attempt to find suitable applicants. Once new recruits are hired.e. dew and sting all are dealing in standard (regular) i. marinda. these professionals are called recruiters. they must be given adequate training and orientation.

which is mandatory for all sales personnel. This is done to develop the employee abilities to 17 .Process of Recruitment and Selection Chart CV acceptance Qualification Written Test If Qualified RJP Demand generation by respective dept Experience 3rd Interview 2nd Interview 1st Interview Panel interview With GM By Mngr of Respected Dept By team tracking Mngr Final Selection Joining A yearly training program is devised.

Increasing demand of PEPSI requires establishment of new production plants. Now following are the effects on the beverages industry. ECONOMICAL FACTORS The country like Pakistan whose economy is not strong enough is affected by so many economic variables which are the following.(a) manage themselves (b) work with others (c) lead others. Employment opportunities will be higher. Combined pricing decisions with mutual agreement between PEPSI and Coke. PESTEL FRAMEWORKS POLITICAL FACTOR In Asia and especially in Pakistan where the political environment is not stable no Government has completed its tenure except the last and the politics also a great influencer on the different industries of the country. where as gain sharing unusually embraces groups of employees. Incentives usually link individual performance and rewards. decides that what will be the rates of sales tax The rates of main operating variables inputs such as the Electricity are also decided by the govt. Incentives and gain sharing are compensation approaches that reward specified outcomes. Few of the salespeople were also exposed to overseas training and 10 of then were sent on international assignments for developing their skills and experience.     Low literacy rate is a problem due to which rural customers are not able to differentiate between PEPSI and Coke and etc. SOCIAL FACTORS .   The govt.

Social welfare program is also active at PEPSI for example PEPSI donated 1 million Rs. There is no institute in Pakistan providing engineering training regarding beverages production plants so PEPSI people have to arrange onsite training for its maintenance engineers to learn working with latest technology plants  There is very limited automation to keep production record. For helping recent earth quake victims. Following are some of these. 19 .       Previously there were separate production plants for the production of specific brand size. They have been sponsoring different cricket events and Pakistan cricket team for almost 10 to15 years. Now they have installed a new production plant which is capable of producing different brand sizes at the same time. Fast food popularity among teenagers has led to the increase in demand of PEPSI.The social factors of each society and culture are different from each other so these also influence the industries as well. The sixth production plant which is currently being installed is imported from Germany.     Now it has become a trend that soft drink should be served in almost every gathering. The seventh production plant which is currently being installed is the latest that is imported from Italy. Most of the record is maintained manually but currently they are trying to shift towards fully automated production control system. The plant which they installed at the time of establishment has now been grounded. TECHNOLOGICAL FACTORS Today is the era of Technology whether it is Information Technology or Production Technology so the PEPSI is also affected by these.

motivated. committed) Better sales planning Vital role in economic development High profit rate Rapidly increasing market share Strong image of PEPSI in consumer’s mind In time service of supplies and technical assistance More installation of post mix machine Strong financial position Rapidly increasing market share . involvement in profit distribution is nil. Because of their location in residential and urban area they are not able to perform loading and unloading of trucks in day time because trucks cant enter in urban areas in day time.ENVIRONMENTAL FACTORS   They are having an ammonia plant installed within the residential area of Multan so they have to follow environment safety laws imposed by govt. SWOT Analysis Strengths Quality in terms of product service Quality of people (trained. LEGAL FACTORS    As there is no concept of profit repatriation so the govt. Laws regarding working condition. working hours and child labor are also enforced by govt. As they are having no solid waste but they have to make special drainage arrangements for the disposal of water used to wash empty bottles before filling them. So they can only load and unload trucks between 10 PM to 6 AM.

No availability of spare parts. No signage’s of post mix in the market No promotional activities in post mix.Cola is on its way to get market share Amrat and Makka cola also trying to get market share Changes in consumer purchasing power Increase in competition Inflation Due to blame of religious group No proper employee’s orientation programs 21 . No proper workshop for post mix.Weaknesses Poor feed back from employees Insufficient salaries Monopoly of distributors cause harm to company No advertisement budgets for post mix. Threats Coca. Opportunities New style management New brand introduction Low cost skilled person availability Opening of new outlets Strong consumer commitment with Pepsi.

On the other hand Pepsi Cola is advertising and promoting their product so heavily that they have almost finished name of their competitors in the market. Pepsi Cola 50-60% Coke & RC 40-50% Others 2. MARKET SHARE Pepsi hold 50-60% of the market share. The rest is held by RC and Coca Cola.COMPETITORS The major competitors Pepsi Cola are Coca Cola and RC Cola.0-3. Because they have accumulative share of only 20% in market.% . Both of these are making little or no effort to put Pepsi down.

3. The problem of printers in MIS department must be solved. MIS Operation and MIS IT department should be separated to increase individual department’s efficiency. 7. Internet facility must be provided to every employee in Finance and MIS department. 6. 11. Proper culture about internship should be developed and proper arrangements about internees should be developed so that internees can get proper knowledge about almost every department in the company. 4. Proper arrangements about the cleanliness of food should be done at the canteen. As employees of IT requires complete silence in there work but in MIS Operations there is much noisy environment. Steps should be taken to ensure cleanliness in each department. 5. 10. Transport facility should be provided to employees. 12. Supply chain department should be white washed properly. 2. Each department should be well decorated. 23 . Lunch should be free for employees. 9. 8. The role of HR Department should be enhanced and its function should be increased to all major departments.Suggestions 1. Drink (Pepsi) should be provided to employees of MA and MIS department at least one time a day on daily basis. The entrance of every department must have proper reception to deal the visitors. It will act as a motivation tool and will ensure in time presence of employees in respected departments.

com www.Bibliography www.google.pepsico.com .com www.beverage-digest.