INTRODUCTION:

Ayaz family was originally from Jhang and was well known in the business community
in textile and plastic manufacturing industry. Akbar sold his manufacturing industries
due to his inability to arrange interest-free financing, and joined the spare parts
business. Akbar Motors became family oriented business in early the Akbar’s Nephew
Khalid Zia run the Akbar motors business later on he left Akbar motors and his own
sons became Director in both shops after Zia left business. His both branches catered
for new and used car sales, in addition to spare parts. They were considering opening
branches in other Areas of Lahore. There was a tendency in Lahore, for markets of
certain items to develop within specific areas. It usually started with a few successful
businesses dealing with a certain item and then others followed by opening stores in the
same vicinity.

PROBLEMS IDENTIFICATION :

1.Poor structure problems

2.Poor decision without any consultation
3.New business without any experience
4.Interest free financing
5.Same activities at both of the shops
6.Both brother are director of small business
7.Unrelated expense
8.Selling problems by salesman of Akbar during in sales
9.Errors occur during the checking of bin numbers in present system
10.Concentration on expanding the business rather than sales
11.Improper hierarchy
12.Salesman sales part lower then cost price
13. Only salesman check bin and commit miner errors
14.Salesman made slight errors in judgment of spare parts order
15.Salesman less look over some parts not order them at all
16.High prize of computer system and inventory software
17.Ayaz was computer oriented and he only focus on computer technology
18.Gather information on computerization
19.Ayaz was a fresh graduate and don’t have enough experience in related
business
 20.Family-owned business Is also a major problem.

Problems Analyses

Due to the growth in the number of automobile in Pakistan, the spare parts market had
recorded vigorous expansion within a couple of decades. According to the federal bureau
of statistics the number of automobile in Pakistan had grown at a rate of 10% per
annum during the period 1975-1985. Imports of spare parts increased from Rs. 275
million in 1979/80 to Rs. 410 million in 1982, while falling slightly to Rs. 409
million in19 83/ 84.

Outlet-where market is not of spare-parts 3 full time purchase agents (3km-6km)

100 parts per day.
50% to company.
45%to industry.
5% to credit.

Potential benefit of technology system on sale computer is

1bm –30000
Software-25000.

To maintain customer confidence, Akbar motors had hired three full-time purchasing
agents whose only duty was to ride their motorbikes to get an out-of-stock part when
needed from Montgomery road. In this manner the carder system proved to be useful
as a check on the sales people. Any missing part would readily show at the time of
quantity checks.

The identification of problem was poor they have facing different problems but they were
focusing on inventory system. Akbar took decision alone of selling his manufacturing
industry without consulting with any skillful person. When he starts business cars were
few in use of general people. His decision of selling business was poor and quick. He was
new at business and do not have related experience. He was thinking of opening new
branches in suburbs of Lahore but he did not focus on the running shops. The distance
between both shops were 10-15mins.Both shops having same nature of business and
both covers the same area of customers. They were facing selling problems; Salesman
sometime sells parts lower than the cost price. Salesman check bin which led him to
slight errors in judgment of order. Sometimes he orders more than requirement of stock.

RECOMANDATION & SUGGESTIONS:

  He should not depend on his family business.
 They should set work differently on both shops.
 They should find identification of problem rather than running towards the
other resource.
 Concentration on selling rather than to expanding the business.
 Provide cash memo to every salesman.
 Personally visit the markets.
 He should take care of his business himself rather than on his nephew .
 He should open a branch in Bedami-bagh.
 He should analysis in quantitative way but he doesn’t consider thinking in
qualitative way.
 They should cover more area and shouldn’t keep focus on same area.
 Both brothers should give time separately in different branches rather then focus
on one branch.
 Inventory system was expensive and Toyota has already given much better
inventory system.
 Make salesman to check bin twice and make his visit to shops every day.
 Ayaz was computer oriented so, Akbar should not focus on his views.
 They haired three purchase agents for same purpose of getting items from market
which was

Prepared By: Nauman Tariq & Usman Malik

Roll # (11429 & 11433)

Standard: MBP-B (Evening)