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Name: Class: Subject: Assignment: Nauroz Khan BBA 5th Marketing Management SWOT Analysis On Utility Stores Corporation Of Pakistan. Abasyn University 21/11/2009

University: Date:


Utility Stores Corporation Of Pakistan:
Utility Stores Corporation of Pakistan (USC or USCP) is an organization, which is handling the vast chain of stores throughout [Pakistan]. The main emphasis of the Corporation is to provide basic commodities to general public on the rates which are lower than the rates in open market.

Brief History:
Utility Stores Corporation of Pakistan was established in 1971 by taking over 20 retail outlets from the Staff Welfare Organization. Passing through various stages of expansion and reorganization, the Corporation at present is operating 6000 stores all over the country.

Basic Objectives:
Utility Stores Corporation's objectives are following: Protection of real income of people by selling essential consumer items at prices lower than those prevailing in the open market. Price moderation in the market and deterrence to profiteering, hoarding and black marketing.


Major Functions:
Provision of large varieties of goods to consumers at lower prices under one roof. Bulk procurement at the time of harvesting, so as to pass rebate to the consumers. Bulk breaking and packing of essential commodities in small packs at USC Warehouses. Large network of Warehouses–62 Warehouses and 6000 outlets throughout the Country. Penetration to rural areas through opening of outlets at [Union Council] level. More than 60% stores are functioning in the rural areas. Contribution to National Exchequer through various types of taxes. Uniform prices throughout the Country. Support to Agro based Industrial sector. Creation of direct and indirect employment and poverty reduction. Provision of essential commodities to consumers at reduced prices at the time of shortage through subsidized operation.

Special Role:
Food Security during Crisis. Intervention in market through sales of subsidized items. Government’s Relief Packages, e.g. Ramzan Package. Market Intelligence.


SWOT Analysis On Utility Stores: Strength:
Utility stores strengths are its resources and capabilities that can be used as a basis for developing competitive advantages. As we know that the strength is on internal basis. Some example of such strength includes: 1. The Utility stores already very famous all over the Pakistan, which is the big strength for Utility stores. Because every body knows bout it, there is no need of expenses on advertisement. 2. The products they used to sale is have already good brand and quality. They have exclusive access to high grade products. 3. Their reputation is good among customers. And their staff is well educated. 4. Their prices of products are lowest in all over the country according to the market. 5. Their distribution is very well and access able all over the Pakistan. 6. It’s backed by government which is its big strength. 7. They are already specialist in marketing expertise.

The absence of certain strengths may be viewed as a weakness. For Example: 1. Lack of good quality products and weak brand because of low price. 2. Poor reputation among the customers, and lack of skillful staff. 3. Lack of distribution channels. They don’t proper channels to provide products in every area. 4. There is no proper access to get every product. 5. They don’t provide product in that quantity in which the customer demand. 6. Some time they quickly change their strategy and policy, which become problematic for customer because they don’t have awareness about it. 7. They don’t have their channels in proper location. 8. Fewer amounts of products.


The external environmental analysis may reveal certain new opportunities for profit and growth. Some examples of such opportunities include: 1. An unfulfilled customer need, which is the opportunity for Utility Stores to fulfill their needs and get more profit because of more selling. 2. Using of new technologies to provide products with better way. They will take advantages of using new technologies for example mobile system and use of transport for supply. 3. They have more opportunities to open more branches in rural areas. OR move to new markets which need proper segmentation. 4. They have opportunities to store the stock in season of every product. 5. They have opportunity to develop their marketing strategy. 6. They don’t have strong competitors.

Changes in the external environment bring threats to the Utility Stores. Some examples of such threats include: 1. Political situation and unsafely situation. Which made the people scared, which compel them to buy products from nearest market. 2. Inflation rate made uncertainty to sell the products. 3. Generating of new rules and regulations. 4. Corrupted staff. 5. Lack of supply. 6. Improper supply system. (Transport) 7. Their competitors have all kind of products in large amount to attract the customers. 8. Competitors (Super GS) have superior access to channels of distribution.

Simple rules for successful SWOT analysis.
1. Be realistic about the strengths and weaknesses of your organization when conducting SWOT analysis

6 2. SWOT analysis should distinguish between where your organization is today, and where it could be in the future. 3. SWOT should always be specific. Avoid grey areas. 4. Always apply SWOT in relation to your competition i.e. better than or worse than your competition. 5. Keep your SWOT short and simple. Avoid complexity and over analysis. 6. SWOT is subjective.



Office Region: Zone: Head Office 1.

Date of Receipt


Applicant’s Name: _______________________________________________________________________________ Son/Daughter/Wife of: ____________________________________________________________________________ CNIC # Date of Birth: DD MM YYYY (Attested Copy Attached) Must be same as on CNIC and Matric Certificate

Nationality: __________________________ Education: _________________________________________________ Resident of (As per CNIC): ________________________________________________________________________ _________________________________________________________Union Council: _________________________ Resident of (As per Property Ownership Documents): ___________________________________________________ ________________________________________________________ Union Council:_________________________ Tehsil: ______________________________________ District: ___________________________________________ Telephone No: (Residence) _______________________________ (Mobile) _________________________________ Business Experience (If any): ______________________________________________________________________ Present Employment/Occupation: ___________________________________________________________________ Next of Kin (Name):______________________________________________________________________________ CNIC No. of Next of Kin 2. FINANCIAL STATUS -

Present Bank: ___________________________________________________________________________________ Bank Balance (Rs): ______________________ Account No: ____________________(Bank Statement to be attached) Bank Loan Required: YES NO Please Circle Clearly

Branch of National Bank (from which loan required): ___________________________________________________ 3. PROPOSED LOCATION OF FRANCHISE UTILITY STORE (For Static Store Only) Shop No: _______________ Building No/Name: __________________ Street No/Name: ______________________ Road _________________________________Mohallah/Colony __________________________________________ Name of Union Council: ______________________________________________ No. of Union Council: _________ Tehsil/Town___________________________________ District: _________________________________________ Covered Area of Shop: Width___________ Length____________ Total ____________ Sq. Ft. (Minimum 250 Sq. Ft) Ownership Status of the shop: OWN HIRED Please Circle clearly Name of Landlord: _______________________________________________________________________________ CNIC of Landlord: (Attested Copy Attached)

Nearest Utility Store (Regular/Franchise): ______________________________________ Distance __________ KMs


Vehicle Registration No. ______________________________ Type of Vehicle: ______________________________ Capacity: ________________________________________ Year of Manufacture: ____________________________ Engine No. ____________________________________ Chassis No. _______________________________________
Ownership Status of the Vehicle: CNIC of Owner:



Please Circle clearly
(Attested Copy Attached)

(Attested copy of Vehicle’s documents, Driving License and Lease Agreement be attached) Driving License No. ___________________________________ Valid up to: _________________________________ Name of Union Council: ____________________________________ No. of Union Council: ____________________ Tehsil: ________________________ District: ___________________Proposed Sale Route: _____________________ ________________________________________________________________________________________________ Existing Utility Stores in/close to this area: _____________________________________________________________ CERTIFICATE BY THE APPLICANT
I have read and understood the terms and conditions attached to the application form and those contained in Franchise Agreement for opening of a Franchise Utility Store. I undertake to abide by all orders, rules and regulations of Utility Stores Corporation of Pakistan. If Franchise License is granted to me, I shall not use this Franchise Utility Store in any unauthorized manner like overcharging, bulk selling, selling unauthorized items and subletting of Franchise Utility Store and any other activity which is not allowed in writing by Utility Stores Corporation of Pakistan. I also understand that the Utility Stores Corporation of Pakistan has right to make subsequent amendments in line with rules, regulations and internal control requirements. I also agree that Utility Stores Corporation of Pakistan reserves the right to revoke/cancel the Franchise License or suspend/stop supply at any time without prior notice in case of any violation of USCs orders by me.

_____________________ (Signature of Applicant) Witnesses (Copies of CNICs of both witnesses must be enclosed) 1. ____________________________________________ (Signature of Witness 1) Name: ______________________________________ S/D/W/O: ___________________________________ CNIC #: ___________________________________

Date: _____________

2. ___________________________________________ (Signature of Witness 2) Name: ______________________________________ S/D/W/O: ___________________________________ CNIC #: ___________________________________

1 . 2 . 3 . 4 . 5 . 7 . 8 .

CHECK LIST Following documents must be attached with the application form
Attested copy of CNIC of Applicant (Permanent/present address must be of same Tehsil where applied for Franchise Store, if not, Applicant must own property in same Tehsil and proof must be attached. Attested Copies of CNICs of Witnesses Attested Copy of CNIC of Landlord /Vehicle Owner Attested Copy of BISE’s Matric Certificate (Can be attached educational certificate Higher than Matric but attested copy of Matric Certificate is Must) Static Store – Ownership Proof of Shop – Whether Own or Hired in both cases Ownership proof is must (i.e. Fard, Registry, Jama Bandi, Electricity/Gas Bill) Mobile Store – Ownership Proof of Vehicle – Whether Own or Hired in both Cases Ownership proof is must (Attested copy of Registration Book and valid Driving License) Notarized Lease Deed on Stamp Paper of at least Rs. 20/- (If the Shop/Vehicle is hired, Lease Deed is must whether belongs to Father/Mother or any other Family Member) Bank Statement in the name of Applicant duly attested by Bank Manager (Minimum Balance Rs. 3,50,000/- in case Bank Loan is not required or Rs. 1,50,000/- in case bank Loan is required, and in case of Mobile Store minimum balance Rs 55,000)

9 . Franchise Agreement (Must be signed by the applicant and Two witnesses – Attested copies of CNICs of witnesses must be attached)

VERIFICATION BY DISTRICT OFFICER USC I have examined the aforesaid data and visited the proposed site. On the basis of physical verification the applicant is Recommended/Not Recommended for Static/Mobile Franchise Utility store at ________________________________ ________________________________________________________________________________________________ Rationale _______________________________________________________________________________________ ________________________________________________________________________________________________ (Detailed Feasibility Proforma attached) Name: _____________________________________ Signature: ______________ Date of Verification: ____________ RECOMMENDATIONS OF REGIONAL MANAGER RECOMMENDED NOT RECOMMENDED

Reasons _________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ Re-supplies will be made from _______________________________________________________________________ ___________________________________ (Signatures and Stamp of Regional Manager) REMARKS BY ZONAL MANAGER RECOMMENDED NOT RECOMMENDED Date: ___________________

Reasons _________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________________________________________________________________________ ________________________________ (Signatures and Stamp of Zonal Manager) Date: ___________________

INSTRUCTIONS FOR APPLICANTS (Franchise Stores Scheme – Phase – III)
Following points must be kept in mind before completion of Application Forms for Franchise Stores Scheme – Phase–III. Franchise Agreement duly signed and the requisite documents as directed in these instructions must be attached. 1. Applicant must be a Pakistani National who will run/supervise the store himself. 2. Applicant must belong to same Tehsil in which Franchise Store is proposed to be operated. CNIC or property ownership in applicant’s own name should prove this fact. 3. Age of the applicant should be between 18-55 years. (Attach copy of CNIC duly attested). 4. The Applicant must have education level of Matric and above with proficiency to read and write in English. (Copy of education certificate, duly attested, be attached). 5. Distance from nearest store (whether regular or franchise), should be more than 2 KMs. 6. USC will deliver supplies in its own vehicle if the distance of proposed store is upto 100 KMs from warehouse and road can take Mazda vehicles. In case the distance is more than 100 KMs or road is poor, Franchisee will have to carry supplies in own transport. He will be provided appropriate discount fixed by USC. 7. Minimum required finances for the store are Rs. 350,000/- for which Bank Statement be attached.

8. If Bank Loan is required then Bank Statement of minimum Rs. 1,50,000/- for static store and Rs. 55,000/- for Mobile Store is required. Minimum covered area of the Static Franchise Store should be 250 sq. ft, greater will be preferable. Franchise Agreement Form be signed by the Applicant and two witnesses at the specified space and their NIC Copies, duly attested, be attached. IF shop/store is hired, Lease Deed on Rs. 20/- Stamp Paper should be prepared and attested by a Notary Public and duly signed by the Landlord (the person whose name appeared on ownership proof as Landlord), the applicant and two witnesses. Proof of ownership of Store/Shop i.e. copy of Registry, Fard, Jamabandi, Electricity/Gas Bill or any other document (duly attested by the concerned authorities) as ownership proof be attached in all cases. The shops owned by relatives like Father, Mother, Spouse etc have also to be formally hired on the lease deed. The Franchisee will sell the goods at the rates fixed by USC and they will not be sold in bulk to shopkeepers/Commercial dealers. Payments for initial inventory as well as re-supplies will be made through Bank Draft at least one day in advance. The Franchisee will get due training under arrangements of concerned Regional Manager. Rs. 10,000/- will be deposited as security before drawing the supplies. This security amount will be forfeited by USC if agreement is violated. Re-supplies will be normally made on weekly basis. However, Franchisees may draw supplies in between, in their own transport; a specified discount fixed by USC will be given on the total amount of supply. The Franchisee will display the signboard at the premises with the wording “Utility Store (Franchise)”. Logo and other details will be indicated by USC. The Franchisee will sell only those items at his Store, which are provided by USC. Incomplete cases as well as those not meeting the specified criteria are liable to rejection without formal notice. ADDITIONAL INSTRUCTIONS FOR MOBILE STORES 22. 23. 24. 25. 26. 27. Mobile Franchise Store will cover a route specified by USC within 25 KM of a regular store. Applicant may dedicate his own Rickshaw/Vehicle. For bank loan the Applicant must be under 40 years of age. The vehicle/Rickshaw will be painted in specified colour and marked with approved markings of Utility Stores Corporation. Applicant must have a valid Driving License and Rickshaw/Vehicle in his own name/Leased. (Attach copy of driving license, Lease Agreement and copy of Registration of Vehicle. The applicant will invest his own Rs. 55,000/- for drawing the supplies. Bank gives loan only for Rickshaw. Mobile Franchisee will deposit Rs. 5000/- as security with USC before drawing the supplies. The amount will be forfeited by USC if agreement is violated. Mobile Franchisee will draw his initial inventory and subsequent re-supplies from regular Utility Store designated by USC for which payment will be made through Bank Draft. APPLICATION PROCEDURE All applications will be deposited with respective Regional Managers who will ensure their completeness, carry out feasibility check and forward the cases to Zonal Managers with their comments. Zonal Managers will forward them to Head Office with their comments. Normally the applications received first will be processed first, if they are complete in all respects. However, if more than one application are received from particular area, Regional Manager will indicate their priority keeping in view better business prospects. Managing Director USC is the only Competent Authority to approve / reject any application. Applications accepted/recommended by the field staff have no formal / legal value unless approved by Managing Director USC. Applicants may keep a track of their applications through contact with respective Regional Manager or telephone No. 0519235421. Application and Franchise Agreement must be filled in Capital letters which should be legible and clearly readable.

9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21.

28. 29. 30. 31.

------------------------------------------------------------------------------------------------------------------------------------------ACKNOWLEDGMENT RECEIPT FOR APPLICANT (Receipt will be given to the applicant after Stamp & Signatures of USC Official) No. Allotted: Name of Applicant: Address: CNIC # Date of Submission: DD MM YYYY

Name, Designation, Signatures & Stamp of Receiving Official of USC

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