Professional Documents
Culture Documents
Table of Contents
Title
Introduction
Company Profile
Aims and Objectives
Vision
Mission Statement
Product Range
Production and Sales volume
Analysis
Graphical Analysis
Horizontal Analysis
SWOT Analysis
PEST Analysis
Porter's Five Forces
BCG Matrix
Product Life Cycle
Conclusion
Bibliography
Page No
2
2
3
3
3
4
7
8
8
13
14
15
16
17
18
19
20
Page 1
Company Profile
Pak Suzuki Limited is the organisation I have selected for this presentation. Pak Suzuki Motor Company
Limited is thelargest automobilecompanies operating in Pakistan. Others are Atlas Honda, Indus Motors,
Gandara Nissan and Deewan Faroque Motors and etc. The basic activities of Pak Suzuki includethe
import, assembling andmanufacturing of automobile products. Having an overall market share of around
(53%) in the sector, Pak Suzuki is undoubtedly the market leader with Indus Motors (23%) and Atlas
Honda (17%).
Market Share
Others; 11%
Page 2
The Vertical Analysis Comparison of the key ratios for Pak Suzuki over the years and in some
instances the absolute figures will also be used to analyze the planning function of organization.
The Horizontal Analysis Comparison of Pak Suzukis financial position with the next competing
company operated in the sector, which in this case would be Indus Motors Limited.
Vision
Excellence in all respects.
Our Mission
Our mission to realize this vision is:
Page 3
Product Range
Following are some varieties of Moped with their and Prices:
LIANA(1300&1600cc)
The Suzuki Liana available in 1300 cc manual transmission and 1600cc automatic transmission takes
you out of ordinary and into the realm.
Page 4
CULTUS (1000cc)
Cultus is the blend of space and craft. Its trim body conceals ample space &flexibility for both passenger
and storage.
ALTO (1000cc)
Alto has a bright, roomy and comfortablecabin which keeps body relax and strong and lighter body shell
resulting in smooth drive due to reduction of unpleasant noise harshness and vibration.
Page 5
MEHRAN (800cc)
Mehran is Pakistans largestselling car. More smart features like headturning lamp,
matching front grill and a two spoke steering wheel gives it the tidy look. Functional
economy, peak performance or unmatched fuel efficiency.
APV (1500cc)
The New APV (Imported) gives you everything you ever wanted in your vehicle.
Spacious interior for comfort, tough engine to carry large loads and plenty of room for passengers
Page 6
JIMNY( 1300cc)
Steady, sturdy and smart. Suzuki Jimny (Imported) with new wide tread brings
you the ultimate pleasure of a real4-wheel drive.
Page 7
BIKES
Suzuki GS-150
Page 8
P
S
2006
38433
38297
2007
41988
41984
2008
27249
27009
2009
13239
13007
2010
20693
20891
Alto
P
S
20841
20792
21546
21492
18805
18904
6641
6550
11437
11299
Cultus
P
S
24823
24367
24897
24759
19097
19117
8109
7924
13388
13076
Bolan
P
S
14429
13842
15520
15507
13891
13907
9639
9123
14963
15001
Liana
P
S
6270
5902
5964
5984
2352
2183
684
577
359
417
Ravi
P
S
9418
8973
10984
11205
9027
9178
12107
12244
15202
14982
Page 9
Graphical Analysis
Sales Revenue
50000
40000
30000
Sales Revenue in
Millions
20000
10000
0
2006
2007
2008
2009
2010
Sales Revenue for the FY 2010 has increased by around 62.5%. This is primarily because of increase in
the no. of units sold and increase in unit price due to inflation. In2010, company performed well as
compare to 2009 where its revenue decreased by 34%.
Page 10
60000
40000
20000
0
2006
2007
2008
2009
2010
Sales volume increase by 11% in 2007 which later on decrease by 25% and 44% in 2008 and 2009
respectively due to higher interest rates since most of the customers buy the cars on lease. In 2010, the
economy revived a little and the sales volume increase by 53%.
6
4
2
0
2006
2007
2008
2009
2010
The ratio explains the relationship between operating profit and sales. The Gross profit ratio has shown a
decline from 11.8% in 2006 to 9.4% in 2007. Later on, it decreases to 1.5%, 2.2% and 2.4% respectively
in 2008, 2009 and 2010.The primary reason of this decrease is the movement in exchange rates.
Page 11
3000
2000
1000
0
2006 2007 2008 2009 2010
Profit before tax is a better indicator as compared to profit after tax because the taxes paid by a
company over the years vary depending upon the variation in tax rates. There has been a phenomenal
decrease in profit before tax from FY 2006to FY 2010 of around 87%. This happened due to the
increase in exchange rate, administration expenses and loss in other operating income.
1500
1000
500
0
2006
2007
2008
2009
2010
Page 12
PAT as % of Sales
7.25
6.25
5.25
PAT as % of Sales
4.25
3.25
2.25
1.25
0.25
2006
2007
2008
2009
2010
Profit after tax as a percentage of sales revenue declined to 1.5% in 2008 as compare to 2007 where it
was 5.5 %. In 2009, it declined to 1% and in 2010 it further declined to 0.5%.
Page 13
Current ratio
2007
2008
2009
2010
A rule of thumb is that the current ratio should be at least 2. It has increased from 1.58 to 2.28 in 2007
and then increased to 4.44 in 2008, representing an increase of 44% and 95% respectively. In 2009,
current ratio decreased to 3.74 and 3.01 in 2010.
Exchange Rates
1.2000
1.0000
0.8000
0.6000
0.4000
0.2000
39052 39417 39783 40148 40513
38869 39234 39600 39965 40330 40695
88.0000
83.0000
78.0000
73.0000
68.0000
63.0000
58.0000
38869 39052 39234 39417 39600 39783 39965 40148 40330 40513 40695
Page 14
10
0
2006
2007
2008
2009
2010
This shows how much of a companys profit can be attributed to each ordinary share. Pak Suzukis EPS
has decreased from Rs 40.75 in 2006 to Rs 33.7 in 2007. Later on, it decreases to 7.6, 3.1 and 2.6
respectively in 2008, 2009 and 2010.
155
145
135
2006 2007 2008 2009 2010
The fair value of the share increased to Rs 176.16 in 2010 from Rs 139.98 per share from 2006 which
shows that the company is performing well and the investors can earn good returns by investing in the
shares for the longer-term.
Page 15
2.25
1.25
0.25
2006 2007 2008 2009 2010
Page 16
Horizontal Analysis
Pak Suzuki
Indus Motors
2.35 %
7.84%
0.5 %
5.73%
4.61 %
27.36%
Current Ratio
3.01 : 1
1.67:1
Quick Ratio
0.61 : 1
0.9:1
Inventory Turnover
4.76
12
Asset Turnover
2.22
4.66
Capital Gearing
0%
0%
2.57
43.81
0.48
15.00
27.17
5.99
69.82
262.38
176.16
160.15
75
33
No. Of Dealers
Page 17
SWOT ANALYSIS
Strengths
Weaknesses
Higher WACC.
Page 18
Threats
Opportunities
Inflation rate.
Heavy Taxes.
Page 19
Earthquake in Japan.
PEST ANALYSIS
Uncontrollable environment are those external factors which can prohibit us or can create hurdles
between us and our business. It is also called pest analyses which are as follow:
Political Environment
Pakistan has to face lots of ups and down since its independence. So many governments have been
broken down by military authority and most of the time martial law applied on Pakistan. In this scenario
no entrepreneur was willing to invest in Pakistan except few. Due to this market environment wasnt so
good in Pakistan. Anyhow Pakistani government never been trustworthy for any investor.
Economic Environment
Pakistan, an impoverished and underdeveloped country, has suffered from decades of internal political
disputes and external ongoing conflict with India. And after economic recession of 2008 the economy of
Pakistan is highly unstable due to increase in interest rates.
Socio-Culture Environment
Pakistan has strong culture background and it has been follow in some particular region of Pakistan
strictly. But with the passage of time it is going to change. Thoughts of people, choices, taste and style
has been totally changed. If we talk about the transportation source in Pakistan, People use buses,
Page 20
Technological Environment
Technology is grooming with the passage of time. People also want that the product that they have is full
of technology. We never control on technology for example you launched the product last year and your
sale volume on that time is very high but after sometime due to latest invention a lots of substitute exist
in market which affect on your business so you cant hold on it.
Market Analysis
Porters 5 Force
The strategic business manager seeking to develop an edge over rival firms can use this model to better
understand the industry context in which the firm operates.
Page 21
power of suppliers.
Pak Suzukis suppliers have been known to be some of the most dedicated suppliers in the industry. By
virtue of the Just-In-Time production concept pioneered by Pak Suzuki, the auto industry itself has seen
a very positive relationship develop between its suppliers and producers.Suppliers are expected to make
deliveries of parts in small quantities several times a day. Pak Suzuki, by reducing its part inventory, has
been able to speed up production costs, save money by not letting parts sit on the shelf, and improve its
relationship with parts suppliers, which rely on Pak Suzuki for their revenue.
4. Threat
of substitutes
Consumer preference is changing (Mini cars are being replaced by compact or midsized cars) .Setting
up integrated manufacturing facilities may require higher capital investments than establishing assembly
facilities. Pakistan passenger car market is moving towards cars of higher capacity.
5. Rivalry
between competitors
Industry competition between auto makers is fierce. The typical consumer, when searching for a
particular vehicle is bombarded by choices. For example, a search for ALTO (Product of Suzuki) yields a
result of Cuore (Daihatsu) with a minimal extra amount.
BCG MATRIX
Page 22
Question Mark
High
Market
Growth
Sprinter
ECO
Cash Cow
GS-150
Dog
Low
SHOGUN
High
Market
Share
Low
Page 23
ALTO
BOLAN
SWIFT
JIMNY
SHOGU
N
SPRINTE
R
MEHRAN
CULTUS
LIANA
RAVI
APV
SHOGUN
Page 24
Page 25
Bibliography
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
http://www.paksuzuki.com.pk/Automobile/PDFfile/Financial/SuzukiAnnualReport06LR.pdf
http://www.toyota-indus.com/financial/Annual-Rep-2010.asp
www.kse.com
(9)
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