ISMAIL INDUSTRIES LIMITED

Management Functions Case Study

Final Project Report

Group Members: Course: Management Principles

Rabia Ghuman: 2011277 Program: BBA Fall 2020

Muhammad Saud: 2011263 Section: 1D

Marium Muzammil: 2011256 Instructor: Iqra Anwar Shah

Shuja Uddin Shaikh: 1911400 Date: 27th December 2020

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Table of Contents
Executive Summary.....................................................................................................................................3
Introduction – Ismail Industries Limited.....................................................................................................4
Historical Background.............................................................................................................................4
Business Segments of Ismail Industries Limited.........................................................................................5
A. CandyLand: No. 1 Confectionery Company in Pakistan..................................................................5
B. Bisconni: Innovation Hub................................................................................................................5
C. Snack City: 3rd Biggest Snacks Company in Pakistan....................................................................6
D. Astro Films......................................................................................................................................6
E. Ismail Nutrition................................................................................................................................6
Ownership Structure of the Company..........................................................................................................8
Immediate Board of Directors.....................................................................................................................8
Management Functions at Ismail Industries Limited...................................................................................9
1. Planning...........................................................................................................................................9
2. Organizing.....................................................................................................................................11
3. Leading..........................................................................................................................................14
4. Controlling.....................................................................................................................................16
Conclusion.................................................................................................................................................18
Appendix...................................................................................................................................................19
References.................................................................................................................................................20

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Executive Summary

Ismail Industries Limited is a public limited company in Pakistan. It was initially founded by the Ismail
family as a private company; however, it was later announced as a public company with the symbol of IIL
on Pakistan Stock Exchange.

Ismail Industries is one of the biggest players in the market of confectionary, snacks, and biscuits. In
addition to that, the company has investments in plastic films and wind power. Ismail Industries Limited
is involved in the production of very large pool of products, including biscuits, chips, candies, cakes, and
other snacks. The company’s business segments are basically the household names, i.e., Bisconni, Snack
City, CandyLand, and Astro Films.

Ismail Industries Limited, being one of the biggest Pakistani company which is also recognized globally,
runs by a very unique and effective management, who oversees every management function and work
their level best to improve them.

This report includes a very detailed introduction of Ismail Industries Limited, and explains each of the
four management functions, i.e., planning, organizing, leading, and controlling, which Ismail Industries
Limited is associated with on a large scale.

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Introduction – Ismail Industries Limited

Ismail Industries was founded in Karachi, Pakistan on June 21, 1988 as a private limited company. On
November 01, 1989 the company was transformed into a public limited company. Under the
'Candyland', 'Bisconni', 'Snack City' and 'Astro Films' brands, the company's main activities are
manufacturing and trading of sugar confectionery products, biscuits, potato chips, and cast polypropylene
film. The company's symbol is listed on Pakistan Stock Exchange as ISIL.

Historical Background

Since 1952, Ismail family has been synonymous with the biscuit industry with the first biscuit
manufacturing operation in Sukkur under the name JB Mangaram. Union Biscuits was established in the
early 1960s, and the first fully automated biscuit line was imported from Europe. Union Biscuits then
became a household name in Pakistan. In 1987, the Ismail family parted ways with Union Biscuits and
went on its own, forming its confectionery arm under the name of Candyland. Candyland—company's
first division—is not only a standout player for the company, but also a market pioneer in bakery goods.

Bisconni, which came into being in 2002 with the aim of supplying the highest quality cookies in
Pakistan, was the next big achievement. Bisconni is now known as the pioneer in the category of quality
biscuits in Pakistan today.

Snack City—another venture of Ismail Industries—was established in 2006, with the aim of becoming a
market leader in Pakistan's food industry.

Moreover, Astro Films was founded in 2004 and is now a renowned producer of CPP, BOPP and
BOPET films. Ismail Industries claims to be the leader in the category of CPP, which introduced recently
with the collaboration with Italian government plant that is supposedly going to improve its production.

Over the last 30 years, Ismail Industries has diversified its operations into biscuits, snacks, plastics,
banking, and power generation. Ismail Industries provides a wide variety of premium goods to its clients
and business buyers, from delightful sweets to commercially manufactured goods.

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Business Segments of Ismail Industries Limited
A. CandyLand: No. 1 Confectionery Company in Pakistan
CandyLand is the sole proprietor of highly specialized and modern confectionary technologies and is
Pakistan's first confectionery maker to invest in such a large range of machinery. CandyLand’s ongoing
growth represents the company's attention towards the provision of premium goods to the customers.

Product Categories:

 Toffees
 Lollipop
 Marshmallows
 Candies
 Jellies
 Chews
 Coated Chews
 Compound Chocolates
 Milk Chocolates
 Chewing Gums

B. Bisconni: Innovation Hub

The company has established itself as a major player in the local market through Bisconni. Bisconni is the
3rd largest player in the biscuit industry with a market share of 20%. It leads the category in 3 segments:

 Wafer
 Chocolate Chips

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  Centre Filled Biscuits

C. Snack City: 3rd Biggest Snacks Company in Pakistan

The Snack City - Potato Chips Unit was set up in 2006. A delicious selection of potato chips and other
savory snacks are sold by Snack City. Ismail Industries Limited has been planting its own potatoes for the
Snack City division since 2006.

Product Categories

 Potato Chips
 Potato Sticks
 Peanuts

D. Astro Films
Owned and operated by Ismail Industries Limited, Astro Films is a renowned manufacturer of CPP,
BOPP and BOPET films. The Astro Films family comprises of three brands, namely: Astro Pack,
Plastiflex Films Pvt. Limited, and Astro Plastics Pvt. Limited

Product Categories

 CPP FILMS: Astro Films launched a CPP film line in 2003, pioneering groundbreaking
alternatives to packaging needs in Pakistan.
 BOPET FILMS: Ismail Industries is pioneering the development of BOPET films in Pakistan
since 2002.
 BOPP FILMS: Plastiflex Films (Pvt.) Limited, operating under the name of Astro Films, entered
into the BOPP Films market in 2011.

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 E. Ismail Nutrition
Ismail Industries Limited partnered with the World Food Program of the United Nations to provide a
substance to tackle deprivation in Pakistan. This substance is manufactured with strict quality controls in
government facilities. Ismail Industries has now been licensed by UNICEF manufacturers to globally
supply this commodity. They are the only organization in Pakistan to be certified by UNICEF because of
their Quality Assurance (QA) and Quality Control (QC).

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Ownership Structure of the Company

Major Shareholding of the Company lies within the Ismail Family (99%) through Mr. Muhammad Ismail
(29%), Mr. Miftah Ismail (31%), Ms. Almas Maqsood (33%), and associates (6%). Remaining shares of
the Ismail Industries Limited are distributed among the general public.

Immediate Board of Directors

1. Mr. Muhammad M. Ismail (Chairman):

Mr. Muhammad M. Ismail finished his B.S. 1974 from the University of Florida, USA in Industrial
Engineering. He entered the Union Biscuits family company and worked as a director until he founded
Ismail Industries Limited in 1989. He oversees all areas of management as Chairman of IIL, including
engineering, trading and marketing, marketing, and growth and investments. He is also an avid hunter and
has a specific interest in bridge.

2. Mr. Maqsood Ismail (Director):

Mr. Maqsood Ismail completed B.S. In Economics in 1981 from the University of Delaware, USA. Prior
to the establishment of the Ismail Industries Limited, he was also a part of the Union Biscuits and looked
after Economy, Public Affairs and Import Divisions. Currently, he acts as a director general at Ismail
Industries Limited and of Bank of Khyber (BOK), where the Ismail family holds a considerable interest.
Mr. Maqsood Ismail was also the Chairman of the Export Processing Zones Authority, Pakistan

3. Mr. Munsarim Saifullah (Chief Executive Officer):

Mr. Munsarim Saifullah received his Bachelors in Engineering from N.E.D, Pakistan. Before he joined
Ismail Industries Limited, he was an employee at Pakistan International Airlines. He is currently Ismail
Industries Limited's Chief Executive Officer. He played in National Table Tennis Team for several years.
and was the 1984 Table Tennis Champion of Pakistan. From its inception, he is with the firm and played
a crucial role in setting up the business.

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Management Functions at Ismail Industries Limited

Ismail Industries Limited has managed to set a nationwide example of excellence because of their
competent efficient management. Undoubtedly, the most effective path to success is quality management,
and judging by the worldwide recognition and success of Ismail Industries, it is safe to say that topline
managers at Ismail Industries Limited are using their best methods to conduct operations throughout
different segments of the business.

Similar to other renowned companies, Ismail Industries Limited manage its business with four orderly
management functions, i.e., planning, organizing, leading, and controlling.

Each function has its own importance in the firm. Without any one of them, the operations of the firm can
be at risk. For instance, planning is what makes the company know its worth in the future, organizing
prevents the company from landing into chaos, leading protects the rules and policies safely embedded in
the walls of the company, and controlling makes sure the risks are subtracted and profits are added. These
functions are what make Ismail Industry Limited provide Quality Assurance and Quality Control to its
stakeholders.

1. Planning

At Ismail Industries Limited, plans are reinforced by creating a budget—a company’s series of reports
used to compute its plans for the future. Ismail Industries plans by establishing a budget indicating the
labor hours required to perform specific services for each client. In the company’s terms, “each client”
refers to each chain link the company produces for and supplies to—nationwide and globally.

The process of generating a budget for each client allows the company to plan for staffing needs. At
Ismail Industries, managers do not expect it to work out in the end by itself. In order to make sure the
budget plans are reinforced; the managers converse the needs of budget to employees.

Ismail industries projects the labor hours required in the future, hires accounting staff based on these
predictions, and schedules the staff required for each client.

A “budget” is not only in financial context at Ismail Industries. It can take a variety of forms. A budgeted
income statement shows a profit plan for the future. A capital budget shows the long-standing
investments planned for the future. A cash flow budget sketches cash inflows and outflows. Time

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duration and innovation budget plans are made to figure out staffing and “new talent” needs—which later
gets reinforced through Human Resource department at the company.

Plans for the Future

Management of Ismail Industries Limited keeps a close eye on upcoming opportunities to plan
accordingly for the future. For the ventures ahead, the Company targets further improvement for its
competitive position by using manufacturing capabilities, strengthening research and development by
leveraging its global capability. The board and management of Ismail Industries keep focused on creating
long-term value for all stakeholders through better-quality operational efficiencies, cost controls, portfolio
broadening and leveraging strong customer relationships—these are the core factors that, according to the
company, help them make futuristic decisions.

As the management of Ismail Industries Limited goes through the process of decision making for the
future, it also simultaneously develops plans based on their decisions, and controls the execution of their
plans. For that, managerial accounting information plays an important part in all segments of the decision-
making process.

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 2. Organizing

Ismail Industries Limited, being a global organization, has to be extremely competent and errorless with
their organization in order to maintain their reputation. There are a few factors that management Ismail
Industries Limited adapts in order to be effective and efficient with their management and, consequently,
lucrativeness.

Cultural Diversity

At Ismail Industries Limited, the management supports diversity in culture. Ismail Industries Limited has
a firm belief that cultural diversity benefits company in a number of ways; one of them is contributing to
an organization’s efficiency and creating a competitive advantage. The Human Resource department of
Ismail Industries Limited hires people from different backgrounds and cultures and respect their beliefs,
giving the deserved and equal respect to every individual belonging to its respective culture or society.
Ismail Industries Limited is of the view that when people from different cultural backgrounds meet, their
ideas and perspectives collectively formulate a lot of profitable strategies.

The company’s ability to understand, accept and operate in a multicultural world benefits the company’s
business. Their strategies include attracting talent from different backgrounds and providing support and
education. Ismail Industry Limited’s policy is to ensure a comprehensive and fair work treatment for all
the employees.

Stable Communication

The communication process defines how the orders are transferred from the higher authorities to the
lower level of management. Similar to their competitors, the management of Ismail Industries Limited
believes in following Chain-of-Command technique to communicate with the employees.

At Ismail Industries Limited, chain of command determines the structure of reporting to authority levels.
This facilitates the coordination of activities to ensure that the company meets its strategic objectives and
influences how well employees communicate with each other.

Ismail Industries Limited exhibits different command and leadership structures, with some having less
hierarchy and levels of authority than others.

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Ismail Industries Limited also has departments that facilitates people doing jobs in different sectors of the
company. That includes the ER department, HR department, Talent Acquisition, Sales department, and
other departments, such as packaging, assembling, finishing etc. These departments make it clear to
employees what exactly their job is, and what they are accountable for. It is one of the ways that speeds
up efficiency of operations at Ismail Industries and shows how talented the core management is in their
organizational skills.

Departmentalization and Organizational Structure

Similar to most of the global organization, Ismail Industries Limited follows textbook-style
departmentalization techniques which helps the company operate with efficiency and cause a more
productive organizational environment. At Ismail Industries Limited, we find:

 Departmentalization by Functions
 Departmentalization by Product
 Departmentalization by Process
 Departmentalization by Customer
 Departmentalization by Geography

As described in the textbook:

To clarify it with the example, the strategic leading of the corporation is broken into five key divisions.
All of them are must-reporting to the CEO.

Based on roles, the management is divided into 3 positions:

 Distribution Network

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  Finance & Accounts
 Management is divided

These roles are further divided on the basis of products—business segments. “Bisconni” and “Snack
City” operations are handled by one person, while CandyLand is managed by another person.

Human Resource Management

The Human Resource (or HR) department is one of the most important part of any organization. It says a
lot about how the function of “organizing” goes on in the firm. It is perfectly safe to say that HR
department is the backbone of the Ismail Industries Limited. It provides the company with the best talents
from Pakistan and abroad. In fact, Ismail Industries Limited’s Group Talent Acqusition program plays a
vital role in the organization’s management. Ismail Industries Limited also uses the new faces to promote
their brand identity and philosophy.

Every other year, Ismail Industries Limited publishes new video(s) where new interns and newly hired
employees talk about how working at Ismail Industries has managed to bring sudden positive change in
their lives, and how it became a learning experience.

The importance of human resource management in Ismail Industries Limited is to increase productivity
from manpower. In fact, it has become a factor in the organizational strategic management. The
promotion of new talent gradually increases organizational performance, human capital, and motivating
environment—and, of course, it gets managed by the best hands, effectively.

Today, Ismail Industries Limited considers human capital to be the most important asset of the
organization for competitive advantage and to sustain in the long run. Ismail Industries Limited believes
in Resource Based View (RBV) by Barney (1986, 1991, and 1995).

The RBV theory realizes that the company would have such an advantage over the competitors that they
won’t be able to imitate their style and it would remain unique. Exercising RBV theory in HR practices in
organizational management is the reason why Ismail Industries Limited and its business segments has
managed to remain competitive throughout decades.

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 3. Leading

Leadership is one of the most important part of any business organization. Being a management
functions, it is a one of the four pillars on which the company stands. There are many forms of leadership
according to the textbook, and the most accepted form is the “influential” type. The leaders who influence
people almost always achieve their goals and manage to increase their organizational performance, and
that is exactly what kind of leadership is adopted by the topline management of Ismail Industries Limited.

The history of Ismail Industries Limited is already an influencing story which gets employees to pay
utmost respect to the company’s leaders.

According to Ismail Industries Limited, they have leaders that can genuinely motivate people to harness
their personal and societal potential. The company states publicly that their leaders can generate success.
Their management style requires them to work with vision, organization, enthusiasm, and adequate
amount of interaction to inspire confidence.

Management of Ismail Industries Limited follows the procedure where they prefer to motivate employees
and focuses on increasing employee satisfaction than consumer satisfaction.

It does not mean that the leader uses his power over his followers to achieve the desired objectives, but
the followers themselves try emulate the leader's attitudes to achieve desired goals.

At Ismail Industries Limited, the leader—whatever department they may lead—is expected to lead the
process of planning and execution of activities to achieve the industry’s goals. Ismail Industries Limited’s
philosophy states that there is a difference between management and leadership. The management is
concerned about the short-term issues in a company, whereas leaders adopt and look into broader
prospective.

In many organizations, management develops leadership theories to accomplish their organizational

goals. Those theories are focused on behaviors, traits, controlling and circumstances (Mintzberg, 1973).
However, the theories at Ismail Industries more centered not only on the leader, but the correlation and
cooperation between the leader and the followers. That is why Ismail Industries is known for their
democratic style of leadership.

In the democratic style, the leader educates their group regarding the activities in which they are
involving. The new and more recent employees at the Ismail Industries Limited know that core position

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holders of the company are part of the organization from the beginning and are trying to implement
profitable strategies from the start; however, the leaders (position holders) never expect employees—
especially the new and the recent ones—to provide their 100% at once. The leaders walk side by side to
employees to walk them through the company’s environment, philosophy, and strategies. At Ismail
Industries, that happens by setting up different departments to facilitate employees, such as employee
training, group meetings, etc.

Corporate Values Which are Taught to Employees by Leaders at Ismail Industries

 TEAM WORK: Unless someone is there, none will get there. We concentrate on maximizing
joint energies and fostering a society in which every work, large or small, is valued.
 FAIRNESS: Fairness is a technical talent that needs to be developed and practiced. We uphold
primary justice, we do as we say
 EXCELLENCE: Excellence is not even an anomaly; it is a mentality which prevails. We view
success in anything we do as a continual phase of improving the bar.
 BELIEF: It takes belief in yourself to do something; everything is achievable for those who trust.
We trust our goods, our systems, our collaborators and, most of all, we trust each other.

Leaders try their best to embed these philosophies in the employees’ minds with practical examples,
business policies, and QA/QC strategies.

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 4. Controlling

The control function assesses whether the organization’s plans were executed effectively or not. Proper
control often leads to recommendations for the future—which is a good thing.

To be extremely accurate with the control policies, management of Ismail Industries Limited compare
actual results with the initial plan (or budget, explained in the planning) to evaluate performance of
employees, departments, or the entire company.

Ismail Industries Limited creates a budget signifying the resources needed to get the task done (this
comes under “planning” function). After the work is completed, actual resources used to complete the
work are equated to budgeted resources. This exploration is then used to assess whether employees were
able to complete the work within the planned time and with the planned resources, and whether they
managed to provide the planned results. This exploration is also used to plan out what will be the
requirements of the similar tasks in future. These future endorsements might include the need for adding
more resources, such as labor hours, finance, supporting documents from the consumer, etc.

Managers continually control operations within the company. If the planning contains forming goals and
communicating these goals to employees, the control function evaluates whether goals were attained, and
is also often used to evaluate the presentation of employees, departments, and the company as a whole.

The control function allows for an evaluation of how well company met the goals established in the
planning process, how well the leading function is working, and how organizing is going on in the
company. Perhaps some goals were attained (e.g., food expenditures were close to what was budgeted)
while other goals were not (e.g., transportation overheads were higher than what was budgeted).

At Ismail Industries, the control function classifies these areas and leads to developed goals in the future.

In today’s business setting, effective control by managers can be essential for survival—and Ismail
Industries Limited knows it well enough. That is why the management of Ismail Industries have set up
different departments of maintenance and evaluation.

R&D Department at Ismail Industries

The Human Resource & Remuneration Committee evaluates the human resource planning of the
Company. Its aim is to help the board and guide the management in the structure of the market-driven HR

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policies concerning performance management, HR staffing, compensation and benefits. It is one of the
core departments of

Auditing Department

Ismail Industries has a self-governing in-house Audit Department, which believes in a risk-based audit
policy. Internal Audit reports are presented to the Board Audit Committee on a quarterly basis along with
the areas of expansion for their review and onward execution.

The guidance and on time decisions of the board—based on audit reports—throws company in the right
direction. This results not only in accomplishing the preferred targets, but also helps the company in
creating new targets while preserving its reputation for good governance and establishment of composed
returns to its shareholders.

The skill to effectively identify, evaluate and to be able manage risks is a vital component of success for
all parts of the business of the Ismail Industries Limited. At Ismail Industries Limited, risk management
occurs at the Functional, Business and Corporate levels, where “3D view of risk” is provided. The
responsibility of supervising the risk management processes, including risk management and internal
control procedures, lies with the Board of Directors at Ismail Industries Limited.

Management Information System

To promote efficient monitoring, Ismail Industries Limited implements a robust MIS reporting
framework. It recently deployed SAP, a German management software, with the introduction of all
modules—except the Human Resources—as its “Enterprise Resource Planning” framework. This
acquisition would further improve the company’s controlling function.

Monitoring and Quality Control

The internal audit department of Ismail Industries Limited has fundamental internal controlling
techniques which are sufficient to ensure enforcement and performance. In addition, the organization uses
stringent quality management procedures at its manufacturing plants, which requires all goods to be ISO
22000 certified.

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Conclusion
Undoubtedly, Ismail Industries Limited has proved itself one of the best public companies of Pakistan in
terms of management functions. The company’s techniques to have firm grasp over its management
functions and solutions to improve them over time is quite extraordinary.

These management functions and the improvement linked to them has benefited Ismail Industries Limited
in the recent years with great margins. The company recently agreed to turn the unsecured debt value of
~PKR 902mln from investors into shares through more share issuance. The matter is in progress and the
company hopes to finish it till the end of the next year. Ismail Industries Limited had a combined fund
base of ~PKR 23,851mln during FY18—and that says a lot about company’s lucrativeness.

Furthermore, sponsors have been operating in the industry for over three decades, and are considered to
have strong business components.

To conclude, Ismail Industries Limited is already one of the most prominent public companies, and it is
just a matter of time till its shares blow up in the stock market.

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Appendix

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References
1. https://ismailindustries.com.pk/company-information.php
2. https://ismailindustries.com.pk/about-us.php
3. https://opendoors.pk/annual-reports/ISIL/2019/Ismail%20Industries%20Limited/
4. https://saylordotorg.github.io/text_principles-of-management-v1.1/s05-04-planning-organizing-
leading-an.html
5. https://www.linkedin.com/company/ismail-industries-limited/?originalSubdomain=pk
6. file:///C:/Users/user/Downloads/ISIL%20-%202019%20Ismail%20Industries%20Limited
%20OpenDoors.Pk.pdf
7. https://www.slideshare.net/TouqeerAhmed17/candyland-147552280
8. https://www.slideserve.com/delila/introduction-to-ismail-industries-ltd-candyland-marketing-sdn-
bhd

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