PEPSI MULTAN INTERNSHIP REPORT (FINANCE)

1. Executive Summary

Beverage industry is very well established in almost all parts of the world and the same goes for
Pakistan. The major beverage companies in Pakistan are PepsiCo and Coca Cola. The emerging
beverage company in Pakistan is Gourmet Cola. PepsiCo and Coca Cola have neck to neck
competition in Pakistan, but Coca Cola is in lead internationally. Both of these companies have
their own strategies to meet the requirement of the target market.
PepsiCo is well reputed multinational company, operating in almost all countries in the world.
The company is registered in New York stock exchange. To make a better control over the
business around the world, the company has given the manufacturing rights to certain
companies. Therefore these companies are producing the products on their behalf by using their
trademark.
Shamim and Company successfully fulfills the requirement of its target customers in the market.
It believes in the departmentalization in their office work and therefore they have established
different departments to achieve their respective tasks.
There are different departments in PepsiCo Multan (Shamim and Company), like human
resource department, management accounts department, accounts coordination department, audit
and control department, banking and finance department, procurement department, training and
development department, store management department, marketing department and sales
department.
Each department is under the control of the manager and respective team of assistants. As my
area of specialization is finance, therefore I visited the departments related to the finance sector
of the company at MDA Chok Multan. The departments related to the finance sector are,
banking and finance department, where I met Mr. Waqas Khan Tareen. Accounts Coordination
department, where I met Mr. Adnan. Management Accounts department, where I meet Mr.
Rizwan Zafar. Audit department where I met Mr. Javed Iqbal and Human resource department,
where I met Mr. Afzal.
Information related to sales, purchases, investment and many more are collected and distributed
among all the departments of the company, out of which quarterly and annual financial reports
are produced after each accounting period. These financial reports show the financial position
and performance of the company.

2. Pepsi Co International

Pepsi is a carbonated soft drink that is produced by PepsiCo. The drink was first made in 1890s
by a pharmacist called Caleb Brad in North Carolina. The brand was registered as a trademark in
1903. Pepsi was first introduced as ‘Brad’s Drink’. It was later named as Pepsi Cola, possibly
named after an enzyme used in it as a recipe and called as Pepsin. The initial aim of Brad was to
produce a drink that aids in the digestion of food. Later Brad moved the bottles from the drug
store to the rented ware house. Where almost 8,000 gallons of Pepsi was sold that year. The next
year sales increased to almost 20,000 gallons. The logo was changed to Pepsi in 1905.
In 1909, automobile race pioneer Barney Old field the first celebrity to endorse Pepsi-Cola,
describing it as "A bully drink...refreshing, invigorating, a fine bracer before a race". The
advertising theme "Delicious and Healthful" was then used over the next two decades. In 1926,
Pepsi received its first logo redesign since the original design of 1905.
Pepsi Company entered into bankruptcy, in large due to financial losses arising due to the
fluctuating prices of sugar after World War I. Assets of the company were sold and Roy C.
Megargel bought the trademark of Pepsi. After almost eight years, the company went bankrupt
again. Pepsi assets were now bought by a candy manufacturing company that sold soft fountain
drinks at its retail stores.
The company was previously selling Coca Cola at its stores, but Coca Cola refused to give
discount on its syrup, therefore the company replaced Coca Cola by Pepsi Cola. The company
than reformulated the syrup formula of Pepsi Cola.
On three separate occasions between 1922 and 1933, the Coca Cola Company was offered the
opportunity to purchase the Pepsi Cola and it declined on each occasion. In 1965, Expansion
outside the soft drink industry began. Frito-Lay of Dallas, Texas, and Pepsi-Cola merged;
forming PepsiCo, Inc. Pepsi Cola Company operates in beverages industry. Pepsi Cola
international is well reputed multinational company which is doing its business in almost every
country of the world. The company is registered in New York stock exchange.
To make a better control over the business the company has given the manufacturing rights to
different companies. Now these companies are producing the products on the behalf of the
company by using company’s trademark. To maintain their goodwill in the market the company
has a strict policy of granting manufacturing rights. Pepsi Cola have standardized products all
over the world (e.g. same in size, shape and quality). The franchises have to follow all the
standards given by the company.
The head office of PepsiCo international is situated in New York (USA) with different units
operating in different regions of the world. These are called the Business Units. The local head
offices for each country are situated in the respective capitals.
To maintain their goodwill in the market the company has a strict policy while granting the
manufacturing rights Pepsi-Cola have standardized products all over the world (e.g. same in size,
shape and quality). The franchises have to follow all the standards as given by the company.
Even they have the mobile team, which check the company after 2 or 3 months. Either company
is producing products according to the standards given by the Pepsi Cola international.
3. Shamim and Company
Pepsi Multan commenced its activities in 1967. Allah Nawaz Khan Tareen initially got license
for the production of 7up. It was the first plant of PepsiCo in Pakistan. In 1973 it became Pepsi
Cola franchise. Now days the managing director of Pepsi Multan is Alamgeer Khan Tareen, who
is the son of Allah Nawaz Khan Tareen.
In the early days, there was only one production plant constructed by Netherland and was only
producing 7up. Because it was the only brand that was being produced by the parent company at
that time. In 1973 the parent company acquired 7up plant in Canada, and since than Pepsi Multan
started producing Pepsi and Marinda along with 7up, and became Pepsi franchise. Coke was
already operating in the market at the time when Pepsi Multan was established. At that time
Coke was the market leader, but with the passage of time Pepsi Multan kept focusing on gaining
the market share. Recently Pepsi has launched a new brand with the name of Mountain Dew.
Now Pepsi Multan is working with five production plants capable of producing 100,000 crates
per day. Installation arrangements for two new plants are in process, which will increase the
production capacity further. Recently automated production plant was installed which has a
production of 70,000 crates per day. The manual plants installed have a production of around
30,000 crates per day. The plant which was installed at the time of establishment has now been
grounded. Pepsi Multan was once the market leader, but recently due to some weaknesses its
market share has dropped.
The company is properly serving all these areas with quality products. PEPSI Multan is ISO
certified.

4. Vision Statement
The vision statement is “we were number one, and we will be number one”. Their collective
success depends on their healthy balance strategies the organizations needs and the needs of their
employees and their families.

5. Mission Statement
To be the world's premier consumer Products Company focused on convenient foods and
beverages. We seek to produce healthy financial rewards to investors as we provide opportunities
for growth and enrichment to our employees, our business partners and the communities in
which we operate, and in everything we do, we strive for honesty, fairness and integrity.”

6. Management of Shamim and Company

Managing Director Alamgeer Khan Tareen

Chief Operating Officer Amir Hameed

General Manager Plant Mohammad Sarwar

Audit Manager Javed Iqbal

MIS Manager Rizwan Zafar

Head of Sales Waqas Rahim

Head of Procurement Department Farooq Tareen

Head of Banking Department Sajid Butt

Accounts Manager Irfan Shehzad

Head of HR Department Mohammad Afzal

 Manager Training Jawad Zafar

7. Organization Hierarchy

Managing Director
General Manager Technical
General Manager Sales
General Manager Finance
General Manager
Operations
Manager Production
Manager Sales & Marketing
Manager Management Accounts
Manager Admin
Manager Personnel
Manager Banking Department
Manager Research & SIS
Manager Quality Control
Manager Shipping
Manager Account Department

Departments under the head of Finance are as following:

         Human Resource Department
         Audit Department
         Accounts and Coordination Department
         Management Accounts Department
         Banking and Finance Department

8. Marketing Mix
Marketing is the task of creating, promoting and delivering goods and services to consumers and
businesses. Organizations identify and profile distinct group of buyers who might prefer or
require varying products and marketing mixes. The customer seeks for value and satisfaction.
The organizations can increase the value of the customer offering in several ways e.g. raising
benefits, reducing costs etc. marketing mix is a set of marketing tools that the firm uses to pursue
its marketing objectives in the target market. These marketing tools are known as 4 Ps of
marketing.
8.1 Products
 A product is anything that can be offered to a market to satisfy a want or need and a service is an
act or performance that is essentially intangible and does not result in the ownership of anything.
What products or services have to be offered to the target market depends on the market
requirement and also the organization’s profits. The organization will offer those products and
services, which result in maximum profits and minimum costs. The products related to soft
drinks offered by PepsiCo in Pakistan are as following.
         Pepsi cola
         Pepsi Diet
         7UP
         7UP free
         Miranda
         Mountain Dew
         Sting
         Slice juice

8.2 Price

It is second important tool of marketing mix because it plays a major role in determining
the customer’s choice. Also it is the only marketing tool that results into revenue.  The
customer makes a comparison between the prices offered by other companies and
PepsiCo and then selects the most suited offer. Following is the list of prices of different
products of all brands.
Product Price
250ml Rs. 20
1000ml Rs. 65
1500ml/1750ml Rs. 85
300ml Rs. 35
500ml Rs. 45
250ml Sting Rs. 30
500ml Sting Rs. 60
240ml Slice Juice Rs. 25
 Shamim and Co Bottling Company normally uses on going price strategy by seeing its major
competitor Coca Cola besides this company also uses Discount price strategy during special
occasions. Like Ramadan offer.
8.3 Place
The location of the organization plays a vital role in making its operations profitable. If the
organization outlets are located in some near markets then it will be very easy for it to attract
people. Therefore Shamim and co has most of its outlets at places where it can reach its targets
customer easily. Following are the major areas which come under operations of Shamim and co:

 Multan
 Sahiwal
 Muzaffargarh
 Lodhran
 Bahawalpur
 Bahawalnagar
 Rahim Yar Khan
 Pakpattan
 D.G Khan
 Khanewal
 Vehari
8.3.1  Major Customers in Multan
Following are some major customers of Pepsi Multan (Shamim and Company) in Multan city:
         Tasty Food Plus
         Mehboob Bakers
         Ideal Bakers
         Food Festival Network
         Chase Up
Shamim and co identifies their target market in Multan division through following ways:
 General stores
 Cold corners
 Parks
 Traffic areas and public areas
8.4 Promotion
PepsiCo is actively participating in promotion of its products and services through advertisement
and other promotional schemes. PepsiCo spends a major portion of its budget on advertising.
Advertising is done through different ways like.
Promotion through the their chillers and other materials such as refrigerators that are provided to
different shops with the LOGO of PEPSI are the ways of promotions which are included into
point of purchase promotions. Marketing by using different marketing mediums like electronic
and print media and using famous celebrities as endorsers and ambassadors of PEPSI, they
mostly use television ads for their promotions. PepsiCo has also developed its culture among
children and Next Generation is its Slogan. Now Pepsi has become the need of everyone and it is
only possible due to its strong promotion.

9. Learning as Internee
9.1 My Activities in Human Resource Department
My first day of internship started in HR department of the company. Mohammad Afzal told us
the importance of the human resource department in a company. The purpose of a human
resource department is to recruit the right person for the right job at right time. HR department
forms a bridge between the employee and employer. The major functions of HR department in
Shamim and Company are as following:
9.1.1 Recruitment and Selection
Information and requests are sent from within the company for the hiring of new people.
Applications are received from hiring department, which mentions the name of department,
name of manager of that department and also the name of supervisor that need new hiring.
Shamim and Company frequently publishes ads related to jobs. It provides opportunity to skilled
people to show their abilities. Job description and job requirements are mentioned in those ads.
The company receives plenty of applications and CVs each time. The people who best meet the
requirement are short listed and called for training programs.
There are majorly two types of employments in Shamim and Company,
         Permanent or temporary
         New or replacement

9.1.2 Employees Training

Shamim and Company provides job training to new employees. There are two major types of job
training that are, on job training and off job training. In Shamim and Company only on job
training is provided. The job training for present employees include the following types:
         Team Building and Team base skills training
         Advance excel and visual base trainings
9.1.3 Performance Appraisal
The performance of employees is also evaluated and measured by the human resource
department in Shamim and Company.  There are forms that are filled by supervisors related to
the performance of the specific employees. Performance are not only evaluated by the
supervisors but also through the behavior of employees with their fellow workers.
The performance report include three categories of documents, these three documents are:
         Job description document.
         Quarterly objectives.
         Competencies and skills
9.1.4 Rewarding
The employees who have performed well continuously and achieved the objectives on time are
rewarded with various benefits. These rewards can be monetary as well as non-monetary. Non-
monetary rewards include the appreciation letter by the GM of the respective department or
promotions.
Those who do not perform well in their work are given further training if required, and if they
still do not perform as per requirement, they are demoted or fired.
9.1.5 Meetings and Activities
Emails are sent by the HR department for the setting of meetings and discussing the projects.
During my course of internship Alamgeer Khan Tareen visited the company and had a meeting
in Gillani house. Shamim and Company also arrange sport activities for the employees.
 Cricket matches are played once a year and musical concerts are also arranged for employees
some times.
9.1.6 Compensation and Benefits
Shamim and Company gives various benefits to its employees and management. Some of the
major compensations and benefits are as following:
         Yearly bonus.
         Eid bonus.
         Sampling (Bottles for Home).
         Leave facility.
         Employee old age benefits.
         Mobile charges.
         Security.
         Life insurance.
         Fuel and Convince.
         Incentives.
Mr. Afzal in the Human resource department showed us the documents related to performance of
the employees. He also showed us the past ads that Shamim and Company gave in Dawn and
Jang Newspapers. The ads asked for the qualifications, skills and personality traits. We also
conducted an artificial job interview in the office.
The online test is conducted in the office. The questions in the online test are related to basic
mathematics, logical reasoning and some part of it is Basic English. Job ads are also posted on
the websites like roozi.pk.  The final job approval is made by Alamgeer Khan Tareen.
9.2 My Activities in Audit Department
I met Mr. Syed Zubair Shah on the first day in the audit department. He gave some basic
introduction of the Pepsi Multan. The company cover almost all of the South Punjab region,
including:
         Multan
         Sahiwal
         Muzaffargarh
         Lodhran
         Bahawalpur
         D.G. Khan
         Khanewal
         Vehari
         Rahimyar Khan
The purpose of audit department is keep a check and balance and gives opinion. The audit
department in Pepsi Multan (Shamim and Company) keeps check on every work, from canteen
to accounting transections. The audit department reports all issues to the senior management.
9.2.1 Reports in Audit Department
The reports received by audit department are non-verified, and audit department verifies them.
All the Audit reports include three major sections. These are as following:
         Observation
         Recommendation
         Management Response
Mr. Javed Iqbal in the audit department showed me recent audit reports one of the report was
about the stock which was received from Tariq Glass and was lying in direct sun light. The audit
team observed that the stock in sun light can be damaged. The recommendation given by the
audit team was that this stock should be in the shed or at least be covered. The management gave
response that the stock was outside the shed because of the welding being done in the shed. 
9.2.2 Internal Audit
The audit department also tests the items that are daily bought for canteen and the recipes that
are made in the canteen for the labor. When bottles are filled in the production plant, a chemist
also takes the sample and checks the quality and reports it to the audit department. The
preservation and ingredients ratios are also checked. If any deviation from the standard is found,
the whole batch is drained before going in market. The audit team makes inspection after every
30 minutes, and if the team finds any laziness from the side of employees, it is immediately
reported to the operation manager.
9.2.3 External Audit
I was informed that there is an external audit team which comes from Dubai. This team takes
samples randomly from the market and check the quality, as if they are according to standard or
 not. Shamim and Company has shown good quality for last five years, and been awarded many
times for it. The company has a very rigid quality control system. The bottles also have codes on
it.
L14164083612RCM15
L License code
14 Year
164 Day of the year
0836 Time of the day
1 Shift
2 Plant number
R Plant in charge code
C Chemist code
M City code
15 Tank number

The Audit team is involved on each step of production process, that includes processes like;
         Testing of Raw Material.
         Sugar Testing.
         Water Treatment Testing.
         Syrup Testing.
         Finished Product Testing.

9.3 My Activities in Accounts and Coordination Department

I met Mr. Irfan in the accounts and coordination department. I was told about the major work
that is done in the accounts and coordination department of Shamim and Company. Accounts
department records the transections and other major tasks in raw form, which are later processed
and transferred to Management Accounts department. The accounts department records both
major types of accounting systems, i.e. cash basis and accrual basis. This department in Shamim
and Company performs the following functions:
         Payments
         Collections
         Payroll
         Recording
         Budget
The management in accounts department of Shamim and Company keeps an eye on the
opportunity to save money, looking for discounts or incentives available for paying the vendors
as soon as possible. This department is also accountable for tracking receivable. In the ratio
analysis we will see that the day’s sales in receivables ratio of Shamim and Company is good
enough and it remained same for both the years, indicating the steady performance of the
company.
Accounting department makes sure that all the employees are paid accurately and on time. Other
than this, the department calculate the tax for the company. The department maintains the
accounts, it has its own software.
Accounts department in Shamim and Company maintains budgets. Those budgets are as
following:
         Annual maintenance budget, which include overhauling of plants and maintenance of the plant
at the year end.
         Routine budget, which include the maintenance or meeting the needs of routine work.
         New machine budget is related to the amount required to purchase and install new machinery in
the company.
The accounts and coordination department calculates allowances which include daily allowance
and travel allowances. The company looks for the key areas in the city where there is more sale.
The company makes agreements with the shopkeepers in that area and provide them deep freezer
or refrigerators. Allowance is paid in advance.
Accounts are also maintained for the sales and promotion activities related to the company.
Promotion activities include the advertisement, posting banners and sponsorships. Mr. Irfan gave
me some receipts and asked me add the net amount of all the receipts. After totaling I matched
the amount with the one which was already recorded.
9.4 My Activities in Management Accounts Department
In the management accounts department I met Mr. Rizwan. This department is also called as
Management and information department and it is in the building where the manufacturing plant
is. During this period I visited the production plant twice. Mr. Rizwan guided me about the plant.
9.4.1 List of Major Suppliers
 Mr. Rizwan told me about the various suppliers, who provide the raw material. The list of these
suppliers is given below.

No. Material Manufacturer/ Supplier

1 Pepsi Concentrate
2 Caps and Closures
3 Plastic Bottles
4 Glass Bottles
5 Carbonated Water
PepsiCo International Ireland.
Gatron Pakistan Limited in Karachi
Gatron Pakistan Limited in Karachi
Baluchistan Glass Mills & Tariq Glass Limited
Pakistan Bottlers Limited

In Shamim & company, major item of inventory is finished product. There are two ways to
distribute that finish inventory, the first method is direct and second is indirect method. In direct
method they provide crates of bottles to their dealers at the required destination through their
own transport, in indirect method the dealers have their own transport for distribution.
Company has its own vehicles for the distribution service. The company maintain all records of
delivery trucks in Vehicles Detail Report. This report includes two types of record of delivery
trucks. Which are as following:
1.      One way vehicles.
2.      Two ways vehicles.
The department maintains several reports, for which the data has been collected from accounts
department and various other department.
9.4.2 Reports
Some of the reports made by this department in Shamim and Company are as following.
         Sugar Procurement Report
         Production Efficiency Report
         Daily Shift wise Report
         Vehicles Detailed Report
         Empty Unload Report
         Raw Material Report
         Daily Liquid Report
         FIFO Implementation Report
         Daily CO2 Production Report
 The reports produced by this department are very important, because company’s function depend
on these reports. It also records breakage, actual production, stoppage time and production time
of the plant.
I viewed all these reports during my time in this department. The company maintain separate
record for all the brands. Some of these reports are combined into a single report which is send to
the senior management.
The report include the following data.
Particular Production Day Production Day Production Day
1 2 3
7up
Pepsi
Marinda
Mountain Dew
Sting
Total
Sugar
Carbon dioxide CO2
Carbon Powder
Crown Caps
Shrink Wrap
Label
Stretch Wrap
Layer Pad
Total
9.5 My Activities in Banking and Insurance Department
The last department I visited during my internship program was the banking and insurance
department of Shamim and Company. This is one of the most important department of the
company. I met Mr. Waqas Khan Tareen in this department. This department in the company
ensures that the valuable assets of the company are secured and also provide the financial
services to the company, like leasing and looking for the financial sources. Following are the
assets that are secured by this department:
         Vehicles
         Machinery
         Stock
         Life insurance
 Shamim and Company uses the services of the following insurance institutions.
         Askari General Insurance Company Limited.
         Shaheen Insurance Company.
These assets of Shamim and Company are usually insured for a period of one year, and if there is
any damage to the asset. The company can claim for the payment of such damages.
9.5.1 The Process of Insurance
The assets of the company are insured by the following process.
         Intimation: Intimation means giving hint. The Shamim and Company gives intimation to the
insurance company for the insurance of a specific asset. All the important documents are
provided to the insurance company related to the asset.
         Survey: After receiving the intimation from the company, the insurance company than send a
team to investigate about the asset. The team needs to investigate to get all facts about the market
value, cost and life of the asset.
         Cover Letter: After the completion of survey process, if the insurance company is satisfied it
issues cover letter to Shamim and Company. This cover letter includes all important information
about the expiry date, premium and other necessary information needed to get asset insured.
         Premium Payment Receipt: When the cover letter is received by the banking and insurance
department, it has to pay the premium within a period one month to the insurance company.
After the payment is made, insurance company issues premium payment receipt to Shamim and
Company. This receipt is kept by the banking and insurance department. It can be used when
there is any damage to the asset that is being insured.
9.5.2 Leasing Activities
Firms often choose to lease long-term assets rather than buy them for a variety of reasons. There
are two kinds of accounting methods for leases: operating and capital lease. A vast majority are
operating leases. An operating lease is treated like renting payments are considered operational
expenses and the asset being leased stays off the balance sheet. In contrast, a capital lease is
more like a loan; the asset is treated as being owned by the lessee so it stays on the balance sheet.
Banking and insurance department in Shamim and Company is responsible for leasing activities.
The company has leased many assets from different financial institutions in the past years.
Following are few of financial institutions providing assets on lease to Shamim and Company:
         MCB Bank Limited
         Faysal Bank Limited
         Habib Bank Limited
9.5.3 Major Documents
The major documents used in banking and insurance department of Shamim and Company are as
following:
Letter of Credit
The letter of credit is a document used by the company when it is importing raw material from
another country. The bank issues a letter of credit in favor of Shamim and Company and ensures
to the importer that if the company does not pay the bank will pay the amount for the goods
imported.
Cover Note
As discussed before, a cover note is a document that is issued by the insurance company to the
banking and insurance department when Shamim and Company insures any of its asset. This
document contains important description like the value of asset and period of insurance.

10. Competitor Analysis

10.1 Coke vs Pepsi
The major competitor of Pepsi in the world is Coca Cola. Coke covers a larger portion of market
as compared to Pepsi. Coke is the direct competitor of Pepsi, where as there are some other
competitors too in the market. The same competition persists in the market of Pakistan. Coke is
dominating the market of Pakistan as well. The market of Pepsi in Pakistan has dropped in recent
years.
PepsiCo Coca Cola
Market Share 31.4% 44.1%
Number of Countries 160 200
Variety of Product Large Large
Target Market Youth General
Strategy Differentiation Differentiation
Diversification Related Related

The promotion activities of Coke have increased in the past years. Coke is has hosted seven
seasons of Coke Studio. Music is very popular in Pakistan, due to the Coke studio strategy the
market share of Coke has increased. Further, there is a drop in the taste and level of CO2 in
Pepsi, forcing the consumer switch to Coke. The market shale according to sales is given below.
2014 Pepsi Coke
Net Sales 100% 100%
Gross Margin 53.7 61
Operating Income 13 13.7

The sales of Coke is greater than Pepsi. The management of Coke has been working efficiently
in controlling the cost of goods sold, and using that amount in selling, advertising and
promotional activities.
10.2 Gourmet vs Pepsi
There has always been a threat of new entrant to Pepsi in Pakistan. Gourmet is the uprising local
carbonated drink producer. Its sale has increased during the past year. The main reason for the
increase in sales of Gourmet is the low price and different additional flavors.

11. Financial Statements

11.1 INCOME STATEMENT
SHAMIM & Co.
2014 2013
000 000
Rupees Rupees
Net Revenues 6,534,934 6,508,670
Cost of goods sold 3,026,632 3,061,814
Gross profit 3,508,302 3,446,856

Selling, General and Administrative expenses 2,560,348 2,484,986

Amortization of intangible assets 9,016 10,780

Operating profit 938,938 951,090

 Interest expenses (89,082) (89,278)

Income before income tax 849,856 861,812

Provision for income tax 215,502 206,192
Net Income 634,354 655,620

11.2 Statement of Cash Flows

Shamim & Co.
2014 2013
000 000
Operating Activities Rupees Rupees
Net Income 634,354 655,620
Depreciation & Amortization 257,250 260,974
Stock-based Compensation expenses 29,106 29,694
Merger & Integration charges - 980
Cash payments of merger & integration charges - (2,450)
Restructuring & impairment charges 40,964 15,974
Cash payment for restructuring & charges (26,068) (13,034)
Cash payments to restructuring charges related to Tariq Glass - (2,548)
Shaikhu Pura remeasurement charges 10,290 10,878
Excess tax benefits from share based payments (11,172) (11,466)
Pension & retirement medical plan expenses 65,366 64,974
Pension & retirement plan contribution (64,190) (25,676)
Deferred Taxes (1,862) (103,684)
Accounts & notes receivables (33,614) (8,624)
Inventories (10,878) 392
Prepaid expenses 7,840 (4,998)
Account payables 113,876 98,686
Income tax payable 36,358 8,428
Other net (26,362) (34,202)
Net Cash provided by Operating Activities 1,029,588 949,424
Investing Activities
Capital spending (280,182) (273,910)
Sales of property, plant & equipment 11,270 10,682
Cash payments related to transactions with Tariq Glass - (294)
Acquisition & investment in non-controlled affiliates (8,624) (10,682)
Divestitures 19,894 13,034
Short term investments
     More than three months purchase (617,890) -
     More than three months maturities 381,318 -
     Three months or less, net 11,368 5,978
Other investing, net (980) (2,058)
Net Cash used for Investing Activities (483,826) (257,250)
Financing Activities
Proceeds from Insurances of long term debt 377,790 411,110
Payments of long term debt (214,522) (381,612)
Short term borrowings:
     More than three months proceeds 4,900 2,254
     More than three months payments (980) (48,216)
     Three months or less, net (199,626) 160,132
Cash dividends paid (365,540) (336,532)
Share repurchase-common (491,176) (294,098)
Share repurchase-preferred (980) 686
Proceeds from exercise of stock options 73,990 110,054
Excess tax benefits from share based arrangements 11,172 11,466
Acquisition of non-controlling interests - (1,960)
Other financing activities (4,900) (3,234)
Net Cash used for Financing Activities (809,872) (371,322)

Effects of exchange rate changes on cash & cash equivalent (53,508) (19,208)
Net Decrease/Increase in cash & cash equivalent (317,618) 301,644
Cash & cash equivalent at the beginning of year 918,750 617,106
Cash & cash equivalent at the end of year 601,132 918,750

11.3 Balance Sheet

Shamim & Co.
2014 2013
000 000
ASSETS Rupees Rupees
Current Assets
Cash & Cash equivalent 601,132 918,750
Short term investments 254,016 29,694
Accounts & Notes Receivables 651,798 681,492
Inventories 308,014 334,082
Prepaid expenses & other assets 210,014 211,876
Total Current Assets 2,024,974 2,175,894
Non-Current Assets
Property, Plant & Equipment 1,689,912 1,820,350
 Amortization of Intangible Assets 142,002 160,524
Goodwill 1,466,570 1,628,074
Other amortized intangible assets 1,238,622 1,411,290
Non amortized intangible assets 2,705,192 3,039,372
Investment in non-controlled affiliates 263,522 257,054
Other Assets 84,280 139,650
Total Assets 6,909,882 7,592,844

LIABILITIES AND EQUITY

Current Liabilities
Short term obligations 497,448 519,988
Accounts payable and other current liabilities 1,275,568 1,228,234
Total Current Liabilities 1,773,016 1,748,222
Long term debt obligations 2,334,458 2,384,634
Other liabilities 562,912 483,238
Deferred Income taxes 519,792 586,628
Total Liabilities 5,190,178 5,202,722
EQUITY
Capital stock 405,720 403,760
Retained earnings 4,811,016 4,549,160
Accumulated other comprehensive loss (1,045,562) (502,446)
Repurchase common stock (2,448,530) (2,058,392)
Total common share equity 1,722,644 2,392,082
Non-controlling Interest (2,940) (1,960)
Total Equity 1,719,704 2,390,122
Total Liabilities and Equity 6,909,882 7,592,844

12 RATIO ANALYSIS
12.1 LIQUIDITY RATIOS
The liquidity ratio is used to measure a company's ability to pay the short term obligations. This
ratio is basically used to have an idea of the company capability to pay off its short term
obligations which are usually debt and notes payables, with its short-term assets such as cash,
inventory, and receivables.
12.1.1 Current Ratio

The current ratio of Shamim and Company shows that the company has sufficient current assets,
which can be converted into cash easily to pay the obligations which can arise on a sudden. The
current assets in the year 2014 decreased a little because of the outflow of the cash in investing
and financing activities.
The Current Ratio = Current Assets/ Current Liabilities

2013 2014
1.24 1.14

12.1.2 Quick Ratio/ Acid Test Ratio

This ratio also measures the company’s ability to meet the short term obligations. But this
method is based upon a conservative approach, because inventories are also a part of current
assets, but can take time to be converted into cash. Therefore this ratio excludes inventories from
the current assets and uses only the most liquid assets to meet its current obligations. According
to the data I received, Shamim and Company could meet 93% of its current obligation with its
most liquid assets in the year 2013. Which reduced to 85% in 2014. The formula for calculating
the ratio is given below.
Quick ratio = (current assets – inventories) / current liabilities

2013 2014
0.93 0.85

12.1.3 Cash Ratio

Cash ratio is also used to measure the company’s ability to meet its current obligation but with
cash only, which does not need to be converted into anything else to pay the obligation. This is
based on the most conservative approach. You don’t have sell off your investments and other
current assets to get cash to pay the immediate obligations. Although the current ratio of Shamim
and Company decreased from 0.53 in 2013 to 0.34 in 2014, the company is still in position to
pay off almost 34% of current liabilities in 2014. Cash was reduced during the year of 2014,
because of increase in cash outflow in investing and financing activities. The formula for
calculating the cash ratio is given below:
Cash Ratio = Cash and Cash Equivalent/ Current Liabilities

2013 2014
0.53 0.34
12.1.4 Working Capital
This ratio is actually used to measure the company’s financial health in a specific period. There
are the approaches related to working capital, conservative approach in which the company does
not take risk and the investing activities of the company are very low, where as aggressive
approach is opposite to it, in which companies are eager to take risks and therefore investing
activities are more. The moderate approach is in between these two approaches. During the year
of 2014 Shamim and Company leaned a little towards the aggressive approach, as the investing
activities increased by double during the year. Working capital is calculated by deducting current
assets from current liabilities, and it compares current assets with the current liabilities. The
current assets of Shamim and Company have stayed more than current liabilities in the past two
years.
Working Capital = Current Assets – Current Liabilities

2013 2014
427,672 251,958

12.1.5 Liquidity Performance

Liquidity ratios are used to determine a company’s ability to meet its short-term debt obligations.
Company that is consistently having trouble meeting its short-term debt is at a higher risk of
bankruptcy, liquidity ratios are a good measure of whether a company will be able to
comfortably continue as a going concern. From the data we can see that the current assets of the
company have stayed greater than the current liabilities, because of which the company has a
good financial position. The short term investments increased in the year 2014. The cash
decreased because of the increase in investing activities and because of the payment of some
short term obligations.

12.2 ACTIVITY RATIOS

Accounting ratios that measure a firm's ability to convert different accounts within its balance
sheets into cash or sales. Activity ratios are used to measure the relative efficiency of a firm
based on its use of its assets, leverage or other such balance sheet items. These ratios are
important in determining whether a company's management is doing a good enough job of
generating revenues, cash, etc. from its resources.
12.2.1 Receivable Turnover Ratio
This ratio is used to calculate the effectiveness of the company in the extending of credit and its
ability to collect the debts. It show the number of times during the year the company collects its
average accounts receivables. Higher the receivable turnover ratio the aggressive collection
policy and also more number of high quality customers. The collecting policy of Shamim and
Company is good enough, but still there is a room for improvement. The ratio shows a little
increasing trend. The formula for calculating the receivable turnover ratio is given below:
Receivable Turnover Ratio = Net Sales/ Average Gross Receivables

2013 2014
9.76 9.80

12.2.2 Days Sales in Receivables

This ratio is used to evaluate or calculate how long the customers of the company are taking to
pay. This show the efficiency of the company in collecting the receivables. The lower the ratio,
the more effective the management is, in collecting payments. The days sales in receivables ratio
of Shamim and Company is good enough and it remained same for both the years, indicating the
steady performance of the company. The formula for calculating the day’s sales in receivable
ratio is given below:
Days Sales in Receivables = Gross Receivables/ Net Sales x 365

2013 2014
37 Days 37 Days

12.2.3 Inventory Turnover

This ratio show the number of time the inventory of a specific company is sold during a year, or
is replaced during a year. The low inventory turnover ratio show that there is excess inventory
and there is poor sale. Company’s usually selling perishable goods have higher inventory
turnover ratios, as is the case in Shamim and Company. The syrup cannot be stored for weeks.
Therefore the inventory turnover ratio of Shamim and Company is good enough. Although it
decreased a little in 2014, but the change is minor.
The formula for calculating the inventory turnover is given below:

Inventory Turnover = Cost of Goods Sold / Average Inventory

2013 2014
9.67 9.40

12.2.4 Days Sales in Inventory

This ratio is used to calculate the time in days for a company to convert its inventory into sales.
The lower ratio indicates that the product of the company are well demanded, and therefore the
shorter the time in days the better it is for a company. The days sales is in inventory of Shamim
and Company has stayed almost the same in the last two years. It takes almost a month on
average to convert the inventory into sales. Further the sales increase in the summer season.
Pakistan is in a region where the summer has a longer spell. The formula for calculating days
sales in inventory ratio is calculated as bellow:
Days Sales in Inventory = Ending Inventory/ Cost of Goods Sold x 365

2013 2014
38 Days 39 Days

12.2.5 Operating Cycle
Operating cycle includes both day’s sales in receivable and day’s sales in inventory. Operating
cycle is used to find out the number of days a company usually takes in realizing, its inventory
into cash. If the operating cycle is less, which means the company’s cash is tied up for a short
period. The operating cycle in 2014 increased by one day, due to increase in day’s sale in
inventory by one day. The operating cycle is calculated as follows:

Operating cycle = Days sales in Receivables + Days sales in Inventory

 2013 2014
75 Days 76 Days

12.2.6 Operating Performance

Operating ratios activity ratios, measure the efficiency with which a business uses its assets, such
as inventories, accounts receivable, and fixed assets. The more commonly used operating ratios
are the average collection period, inventory turnover ratio, and inventory turnover in days. After
the calculation of some important activity ratios, we come to a conclusion that the performance
of the company’s management is good enough. The performance of the company has stayed
steady during the last few years. Companies selling perishable goods have higher inventory
turnover ratios, as is the case in Shamim and Company.
The syrup cannot be stored for weeks. Therefore the inventory turnover ratio of Shamim and
Company is good enough. Although it decreased a little in 2014, but the change is minor. The
operating cycle of the company has also stayed the same.

12.3 DEBT RATIOS

These ratios give users a general idea of the company's overall debt load as well as its mix of
equity and debt. Debt ratios can be used to determine the overall level of financial risk a
company and its shareholders face. In general, the greater the amount of debt held by a company
the greater the financial risk of bankruptcy.
12.3.1 Times Interest Earned Ratio
This ratio is used to find out whether the company is able to meet the interest expenses or how
much times greater or less the earnings before interest and tax is as compared to the interest
expense. It is also sometimes known as Interest Coverage ratio. The earnings before interest and
tax of Shamim and Company are over ten times the interest expense in both the years. This
shows the success of the company in the region. Creditors will always be in favor of such
company because it shows that Shamim and Company can easily afford its interest payments
whenever they are due. The formula for times interest earned ratio is given below:
Times Interest Earned = Earnings before Interest and Tax / Interest Expense
 2013 2014
10.65 10.54

12.3.2 Debt Ratio

Debt ratio indicates the percentage of assets that are provided by debt. The debt ratio needs to be
lower. The higher debt ratio the more it is exposed to financial risk. Financial ratio should be
lower than one.  If the ratio exceeds one that means the company has more debts than the assets.
The Debt ratio of Shamim and Company is less than one, which is a okay, as the company was
incorporated in mid 1960s, it has developed a strong base. The debt ratio is calculated by the
following formula:
Debt Ratio = Total Liabilities / Total Assets

2013 2014
0.68 0.75

12.3.3 Debt to Equity Ratio

This ratio shows the relative portion of owners’ equity and debt used to finance the assets in the
company. It also expose the amount of debt financing in the business. High debt to equity ratio
can mean that the company is aggressive in growth financing. On the other hand if the company
is using less leverage than it has a strong position. Shamim and Company has high debt to equity
ratio. The company is well established and has the potential of taking risk, because in this way it
can generate more earnings. The formula for debt to equity ratio is given below:
Debt to Equity Ratio = Total Liabilities / Total Equities

2013 2014
2.17 3.01

12.3.4 Debt Performance

Debt performance can be used to determine the overall level of financial risk a company and its
shareholders face. In general, the greater the amount of debt held by a company the greater the
financial risk of bankruptcy. The earnings before interest and tax of Shamim and Company are
over ten times the interest expense in both the years. This shows the success of the company in
the region. The Debt ratio of Shamim and Company is less than one, which is a fine. The long-
term liabilities increased in the year 2014, causing the debt ratio to increase.
There are no shareholders of Shamim and Company. The company is well established and has
the potential of taking risk, because in this way it can generate more earnings.

12.4 PROFITABILITY RATIOS

These ratios are used to assess a business's ability to generate earnings as compared to its
expenses and other relevant costs incurred during a specific period of time. For most of these
ratios, having a higher value relative to a competitor's ratio or the same ratio from a previous
period is indicative that the company is doing well.
12.4.1 Net Profit Margin
Net profit margin is used to find out, what portion of the total revenues is kept as the net income.
Higher net profit margin indicates that the company is running successfully. So is the case with
Shamim and Company, Pepsi and other drinks like 7up etc. are sold in the market throughout the
year. The net profit margin of Shamim and Company has decreased by 0.1 in the year 2014,
because the net profit of the company decreased a bit in 2014. This could be because of the
increase in the market share of Coca-Cola. The net profit margin is calculated by the formula
given below:
Net Profit Margin = Net Profit / Net Sales
2013 2014
0.10 0.09

12.4.2 Return on Assets

This ratio is used to find out the efficiency of the assets of the business in generating the profit
for that period. It measures the profitability. This ratio also gives an idea about how well the
management is in utilizing the assets of the company to generate the profit. The return on asset of
Shamim and Company has decreased a little because of the decrease of net income in 2014.
Return on Assets is calculated by the formula given below:
Return on Assets = Net Income /Average Total Assets

2013 2014
 0.09 0.08

12.4.3 Gross Profit Margin

A financial metric used to assess a firm's financial health by revealing the proportion of money
left over from revenues after accounting for the cost of goods sold. Gross profit margin serves as
the source for paying additional expenses and future savings. The company’s gross profit margin
increased a little from the last year, because of the increase in revenues. The increase in revenues
could be because of the increase in price of 250ml bottles.
The formula for calculating gross profit margin is as following:
Gross Profit Margin = (Sales – CGS) / Sales
2013 2014
53 53.7
   

12.4.4 Profitability Performance

As the net revenues for the year 2014 were greater than 2013 and the corresponding cost of
goods sold decreased, the gross profit margin ratio was therefore greater in 2014. The company
spent more on selling and administrative expenses as compared to the last year. Pepsi and other
drinks like 7up etc. are sold in the market throughout the year. The net profit margin of Shamim
and Company has decreased by 0.1 in the year 2014, because the net profit of the company
decreased a bit in 2014. The return on asset of Shamim and Company has decreased a little
because of the decrease of net income in 2014.

13 Horizontal Analysis
Balance Sheet
2013 2014
ASSETS % %
Current Assets
Cash & Cash equivalent 100 65
 Short term investments 100 855
Accounts & Notes Receivables 100 95
Inventories 100 92
Prepaid expenses & other assets 100 99
Total Current Assets 100 93
Non-Current Assets
Property, Plant & Equipment 100 92
Amortization of Intangible Assets 100 88
Goodwill 100 90
Other amortized intangible assets 100 88
Non amortized intangible assets 100 89
Investment in non-controlled affiliates 100 102
Other Assets 100 60
Total Assets 100 91

LIABILITIES AND EQUITY

Current Liabilities
Short term obligations 100 95
Accounts payable and other current liabilities 100 104
Total Current Liabilities 100 101
Long term debt obligations 100 98
Other liabilities 100 116
Deferred Income taxes 100 88
Total Liabilities 100 99
EQUITY
Capital stock 100 100
Retained earnings 100 106
Accumulated other comprehensive loss 100 208
Repurchase common stock 100 119
Total common share equity 100 72
Non-controlling Interest 100 150
Total Equity 100 72
Total Liabilities and Equity 100 91

Interpretation
Total Assets and total liabilities and equities all decreased from the previous year. The major
change, or rather the major increase was in the short term investment of Shamim and Company
in the year of 2014. Looking at the cash flow statement, I found that there was an increase in
investing and financing activities of the company because of which the cash and cash equivalent
decreased to 65% in the year 2014.
 Income Statement

2013 2014
% %
Net Revenues 100 100.4
Cost of goods sold 100 98.8
Gross profit 100 101.8

Selling, General and Administrative expenses 100 103

Amortization of intangible assets 100 83.6

Operating profit 100 98.7

Interest expenses 100 99.7

Income before income tax 100 98.6

Provision for income tax 100 104.5
Net Income 100 96.7

Interpretation
The management of the company was very effective in controlling the cost of goods sold,
because of which the gross profit of the company increased in 2014. The company might of used
different techniques to control the cost of goods sold, because of which the administrative
expenses increased by 3% from the previous year. Other than this the tax for the year also
increased. Although the gross profit for the year increased, but due to other expenses the net
profit was lower than the previous year.
14 Vertical Analysis
Balance Sheet
2013 2014
ASSETS % %
Current Assets
Cash & Cash equivalent 12.1 8.7
Short term investments 0.4 3.6
Accounts & Notes Receivables 8.9 9.4
Inventories 4.4 4.4
Prepaid expenses & other assets 2.8 3.0
Total Current Assets 28.6 29.3
Non-Current Assets
Property, Plant & Equipment 24 24.4
Amortization of Intangible Assets 2.1 2.0
Goodwill 21.4 21.2
Other amortized intangible assets 18.6 18
Non amortized intangible assets 40 39
Investment in non-controlled affiliates 3.4 3.8
Other Assets 1.8 1.2
Total Assets 100 100

LIABILITIES AND EQUITY

Current Liabilities
Short term obligations 6.8 7.2
Accounts payable and other current liabilities 16.1 18.5
Total Current Liabilities 23 25.6
Long term debt obligations 31.4 33.8
Other liabilities 6.4 8.1
Deferred Income taxes 7.7 7.5
Total Liabilities 68.5 75.1
EQUITY
Capital stock 5.3 5.8
Retained earnings 60 69.6
Accumulated other comprehensive loss (6.6) 15.1
Repurchase common stock (27.1) (35.4)
Total common share equity 31.5 24.9
Non-controlling Interest (0.03) (0.04)
Total Equity 31.4 24.8
Total Liabilities and Equity 100 100
Interpretation
Total current assets of Shamim and Company increased in the year 2014. Among the current
assets the major increase was in the short term investment. The retained earnings in the year
2014 were also more than the retained earnings in 2013. Total equity in 2014 was lower than the
last year, whereas the total liabilities were greater in 2014 as compared to the last year, because
of the debt to equity ratio in 2014 was greater than the past year, as calculated in ratio analysis
portion.
Income Statement

2013 2014
% %
Net Revenues 100 100
Cost of goods sold 47 46.3
Gross profit 53 53.7

Selling, General and Administrative expenses 38.2 39

Amortization of intangible assets 0.16 0.14
 Operating profit 14.6 14.4
Interest expenses 1.37 1.36

Income before income tax 13.2 13

Provision for income tax 3.2 3.30
Net Income 10 9.7

Interpretation
As discussed earlier, the company tried to control cost of goods sold, because of which cost of
goods sold was lower in the year 2014, and therefore gross profit in the year 2014 was higher
than the year 2013. The administrative expenses and the tax for the year 2014 were higher than
the last year, because of this the net income was lower than the past year.

15 SWOT Analysis
A tool that identifies the strengths, weaknesses, opportunities and threats of an organization.
Specifically, SWOT is a basic, straightforward model that assesses what an organization can and
cannot do as well as its potential opportunities and threats. The method of SWOT analysis is to
take the information from an environmental analysis and separate it into internal (strengths and
weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT
analysis determines what may assist the firm in accomplishing its objectives, and what obstacles
must be overcome or minimized to achieve desired results.

15.1 Strengths
 PepsiCo Pakistan has a large market share. The second highest market share after Coca
Cola.
 PepsiCo was established in mid 1960s, there it is well established and well known
company in the region.
 PepsiCo is one of the leading company in the world, therefore it has a very strong
position internationally.
 PepsiCo Pakistan offers many different discounted schemes to its customers time to time.
 The target customers of PepsiCo Pakistan are mostly youngsters, therefore PepsiCo has
more brand loyal customers.
 PepsiCo Pakistan sponsors Pakistani cricket team, and many other concerts and cultural
events.
 PepsiCo Pakistan has a vast distribution channel, and the drinks are available almost
everywhere in Pakistan.
 The company has a strong distribution system.
 Onsite training of 4 to 6 months enables plant engineers to manage plant operations
effectively so that machine downtime is reduced to minimal.

15.2 Weaknesses
 PepsiCo Pakistan always try to target youngsters in the commercials and promotion
activities.
 PepsiCo tins are not available everywhere except for the center of the rural areas.
 Over the past few years the market share of PepsiCo Pakistan has decreased from 46% to
40%.
 Demand of the disposable 500ml bottles is declining, and the cause is still unknown to
the company.

 Poor feedback from employees

 The taste of Pepsi has also declined in last few years.

 Communication can only take place in a formal communication path which leads to delay
in decision making.
15.3 Opportunities
 The company has the opportunity to introduce new flavors. Like it apple and ice cream
flavors produced by other companies.
 Clean water demand is increasing in Pakistan, although the company has Aquafina in its
product line, but it should increase its production related to Aquafina.
 There is a wide range of products offered by PepsiCo internationally. But PepsiCo
Pakistan is only promoting limited fizzy drinks through advertisement and other promoting
activities.
 To increase the sales, PepsiCo Pakistan should sponsor more cultural events and fast food
restaurants.
 There is high market growth opportunity.
15.4 Threats
 The main competitor of PepsiCo in Pakistan or internationally is Coca Cola. Coca Cola
has increased the advertisement activities, and performing it effectively.
 Cola drinks are damaging towards the health, the awareness of people towards this issue
is increasing, which can decrease the sales of PepsiCo fizzy drinks.
 The production of carbonated drinks by other companies is increasing.
 Gourmet is another company that could pose threat to PepsiCo in Pakistan in near future.

16 PEST Analysis
 16.1 Political Factors
The political conditions in Pakistan are not stable. None of the government has completed its
tenure except the last one. The political factors effect greatly on the industrial sector of the
country. Following are the important political factors that affect PepsiCo in Pakistan:
1.      The change in rate of sales tax.
2.      The change in rate of the major operating variables, such as the electricity.
16.2 Economic Factors
The economy of Pakistan is strong enough, because of which PepsiCo is affected by number of
economic factors. They are as following:
1.      The literacy rate is one of the big problem, because of which rural customers are unable to
differentiate between Coke and Pepsi.
2.      Increasing demand of Pepsi requires installation of new Pepsi plants.
3.      Combined pricing decisions with mutual agreement between Coke and Pepsi.
16.3 Social Factors
The social factors of each society are different from each other, therefore these also have an
impact on PepsiCo in Pakistan. These are as following:
1.      Soft drinks and carbonated drinks are now a day’s part of every social gathering.
2.      The trend of fast food has increased among the youngster, which has led to increase in
consumption of Pepsi.
3.      PepsiCo Pakistan also takes part in welfare activities, such as, it donated 1 million to the flood
victims in 2010. Free clean water to general public and providing free lights to the people
affected by the war in North Waziristan.
4.      PepsiCo has also been sponsoring different cricket event and also the Pakistani cricket team.
16.4 Technological Factors
The current era is of technology, no matter if its information technology or production
technology. These technologies do have the effect on PepsiCo. These are as following:
1.      In earlier days there was separate plant for the production of different brand size. Now the new
automated plant is capable of producing different brand sizes at the same time.
2.      There is very limited automation to keep production record. Most of the record is maintained
manually but currently they are trying to shift towards fully automated production control
system.
3.      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
17 Recommendations and Suggestions
Recommendations  and  suggestions  are  considered  to  be  the  most  important  part  of  an
internship report, without which report is not considered complete and meaningful. This part of
the report is based on the previous sections. The recommendations and suggestions are as
following:
         The finance department is established in a house, the rooms of the Human resource department
and Information department are very small and congested. An office should look like an office.
         Cleanliness should be maintained in the canteen.
         Lunch should be offered free to employees.
         There were number of power cuts during my internship program. Such power cuts in the offices
should be reduced or alternative steps must be taken.
         The computers in the offices were all Pentium 4, which is an old technology. Company should
have new computers in offices.
         Company should provide transport facility to its employees.
         Department must provide financial statements to students, so that can make their internship
reports easily.
         The company should use Wi-Fi internet in offices instead of cable connection.
         The company should give incentives to the key accounts executive on the basis of conversion of
coke point into Pepsi point.
         The market share of Pepsi is decreasing continuously, steps must be taken to overcome this
issue.

18 Conclusion
         The company overall has a good working environment in each department, except for few small
issues discussed before.
         The staff is very hard working and responsible.
         The coordination among the departments is good.
         The new plant is producing 70,000 crates each day.
         The management has huge responsibility to play.
         The financial performance of the company is consistent for last few years.

19 References
         Human resource department of Shamim and Company.
         Wikipedia.org
         Procurement department of Shamim and Company.
         Investopedia.com
         PepsiCo.com