CASE STUDY: PAKISTAN FOODS AND BEVERAGE COMPANY

Pakistan Food and Beverage Company having a workforce of 4500 people and 25 percent
annual growth has become a leading company in the confectionary and Food industry of
Pakistan. As living in a real world it is impossible to believe that any successful company has
achieved its status or has survived without facing any problems around. Similarly, PFBC has
faced these too.

Starting from a single shop it has developed so much due to massive increase of products which
are good in quality as well. Now, talking about the problems faced by PFBC.

It uses one man approach that became the major hurdle in the success of this company. This
approach leads to centralization, giving the authority only to the top level management means
that other employees have no power to argue or say something they see wrong happening.
Clearly, they won’t state any problem faced by them as they know they will be not be heard.
Due this problem faced by the lower level management people started leaving the company.
Means, more turnover rate. No doubt, this is not the only reason why, but is one of the main
reasons I see.

Another problem I saw in this case study is that when the top management behaved so
superiorly they will crush the sentiments of the people working under them. They will just want
others to respect them no matter what, but what makes sense is that give respect and get it.
You have to earn it. This thing led to lower employee productivity that means the employees
will not give more output that they could have. They don’t desire to show their potentials or in
other words they are less intended to be the loyal ones. They will hold grievances and grudges
in their hearts that will indirectly affect the productivity or success of the company.

Also, PFDC promoted those workers who were loyal to them and did not leave the company for
whatever reason. Instead promotion could have been done on the basis of skills and talents.

In my view, to make your company a successful one, it should have the factors like
decentralization; giving a chance to the lower level management to give advices and speak up
what they feel is wrong. Being good with employees will make them loyal; incentives should be
given so the employees can nourish better. Only quality does not matter but these other factors
also does.