PEL Final Internship Report

PEL INTERNSHIP REPORT
2022
INTERNSHIP
REPORT ON PAK
ELECTRON
LIMITED
SUBMITTED BY:
Hamna Tariq
FA19-BBA-190
PAK ELEKTRON LTD. | 14km, Ferozepur Rd, Lahore 54000
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PREFACE
The report for internship is an important affair in one’s educational career. The
Degree program for which this internship report was formed is BBA Marketing. The
purpose of this report is for a student to thoroughly analyses his or her capabilities
regarding practical implementations and educational knowledge.
This report focuses on understanding the working principles of Pak Elektron Limited.
The first section in this report is comprised of a general introduction to PEL, its
history, its board of directors and the Vision and Mission statements.
In the later part of this report, the marketing mix of the company is given as well as
the SWOT analysis which provide a complete understanding on company’s current
position regarding its strength and weaknesses so that areas can be identified for
improvement purposes.
In the end, some advices are given with the complete conclusion of the internship
and its learnings.
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EXECUTIVE SUMMARY
Pak Elektron Limited or PEL is one the founders in manufacturing of electrical goods
in Pakistan. The company was established in 1956 as a result of a technical
collaboration with M/s AEG, a German company. In the year 1956, the company was
acquired by Saigol Group of Companies.
Since the starting of its operations, the company has been contributing towards the
development and advancement of Pakistan’s engineering sector by introducing
numerous ranges of quality electrical equipment and goods both for commercial
usage and household use. It has also developed Pakistan engineering sector by
producing thousands of engineers, technicians, skilled workers and business
graduates over its lifespan through various internship programs and apprenticeship
opportunities.
In this report I have given a very brief review of what I have seen during my
internship. I have mentioned all of these as I have made an internship as according
to the schedule. I have discussed that what I have been doing in these six weeks in
PEL and what are the aspects of the Electronics & Appliances that I have learned so
far. I also mentioned about the Appliances industry in Pakistan. Then I have
compared prices of resembling models from different brands. I have mentioned a
detailed SWOT analysis as well as PEST Analysis. I have also prepared a complete
segment regarding financial analysis of the company.
I did an internship in this company for 6 weeks and I have learned a lot by them
regarding marketing strategies, corporate sales, internal sales and strategic
implementations.
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Table of Contents
PREFACE ii
EXECUTIVE SUMMARY iii
1) Introduction of the Organization 9
1.1 APPLIANCES DIVISION 9
1.2 POWER DIVISION 9
2) Appliances Division 10
2.1 Refrigerator: 10
2.2 Air Conditioner: 10
2.3 Deep Freezer: 10
2.4 Microwave Oven: 10
3) Power Division 11
3.1 Power Transformers: 11
3.2 EPC Contracting: 11
3.3 Energy Meter: 11
4) History of PEL: 12
5) Electronic Industry in Pakistan: 13
5.1 Role of PEL in electronic Industry: 13
5.2 Nature of the Organization: 14
6) Main Competitors: 14
6.1 Market Share – Major Competitors: 15
6.2 Lahore Factory: 15
6.3 Location: 15
7) Vision & Mission of company: 18
7.1 Vision: 18
7.2 Mission: 18
7.3 Company’s objectives: 18
PART TWO: COMPANY MANAGEMENT SYSTEM 19
8) Organizational structure: 20
8.1 ORGANIZATIONAL CHART 20
8.2 DESIGNATION IN PEL 21
8.3 RESPONSIBILITY OF MANAGEMENT 21
 Board of Directors 21
 Chief Executive 21
 Executive Director 21
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 Company Secretary 21
 Technical Directors 21
 Director Finance 21
 General Manager Purchase 22
8.4 Finance Department: 22
8.4.1 General Manager Finance: 23
8.4.2 Manager Finance: 23
8.4.3 Assistant Manager Finance: 23
8.4.4 Senior Finance Officer (General): 23
8.4.5 Finance Officer (Treasury Finances): 23
8.5 ACCOUNTS DEPARTMENT: 24
8.5.1 Functions: 24
8.6 IMPORT SECTION DEPARTMENT: 25
8.6.1 Pre-shipment activities: 25
8.6.2 Post-shipment activities: 26
8.7 PROCUREMENT: 26
8.7.1 Local Procurement: 26
8.7.2 Foreign procurement: 27
8.8 HUMAN RESOURCE DEPARTMENT: 27
8.8.1 Recruitment & Job Analysis: 27
8.8.2 Job Design: 27
8.8.3 Performance Appraisal: 28
8.8.4 Goal Setting: 28
8.8.5 Incentive Systems: 28
o Short Run Incentives: 28
o Long Run Incentives: 28
CORPORATE Policy: 29
8.9 STATEMENT OF ETHICS AND BUSINESS PRACTICES 29
9) CODE OF CONDUCT 30
10) CORE VALUES 30
11) Management Functions: 31
11.1 Planning: 31
Refrigerator: 31
11.2 Organizing: 31
Refrigerator: 31
11.3 Leading: 32
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Refrigerator: 32
Controlling: 32
Refrigerator: 32
11.4 Transportation mode: 32
11.5 ISO Certified Product: 32
12) Product Mix: 34
12.1 Products: 34
13) Appliances Division: 34
14) Power Division: 38
15) Services Mix 39
15.1 People: 39
15.2 Process: 39
15.3 Physical Evidence: 40
16) Marketing procedures & policies: 40
16.1 Promotions: 40
17) Advertising Procedure for a Commercial ad: 40
17.1 Advertising Messages: 41
17.2 Ad – Viewer: 41
17.3 Selecting Advertising Media: 41
17.4 Electronic Media 42
17.5 Print Media 42
 News Papers: 43
 P.O.S Material 44
17.6 Outdoor Media 44
17.7 Exhibitions: 44
17.8 Direct Advertising: 45
17.9 Direct Mail Advertising: 45
17.10 Advertising Specialties: 45
18) Pricing policies & procedures: 45
19) Distribution Policies & Procedures: 46
19.1 Distribution Strategy: 46
SWOT ANALYSIS 46
19.2 Strengths: 46
19.3 Weaknesses: 46
19.4 Opportunities: 47
19.5 Threats: 47
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PART SIX: ACCOUNTING AND FINANCE SYSTEM 48

19.6 FINANCE DEPARTMENT 49
19.7 ACCOUNTS DEPARTMENT 49
19.8 Functions 49
20) TRAINING PROGRAMME 52
20.1 Roles & Responsibilities of marketing department: 52
20.2 Roles & Responsibilities of Sales department: 52
21) Week 1: 52
22) Week 2nd and 3rd: 53
23) 4th Week: 53
24) 5th Week: 54
25) Problems: 56
26) Recommendations: 56
26.1 Conclusion: 58
26.2 REFERENCES: 58
vii
PART ONE:
INTRODUCTION OF THE
ORGANIZATION
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1) Introduction of the Organization

Pak Elektron Limited (PEL) is the pioneer manufacturer of electrical goods in
Pakistan. It was established in 1956 in technical collaboration with M/s AEG of
Germany. In October 1978, the company was taken over by Saigol Group of
Companies. Since its inception, the company has always been contributing towards
the advancement and development of the engineering sector in Pakistan by
introducing a range of quality electrical equipment’s and home appliances and by
producing hundreds of engineers, skilled workers and technicians through its
apprenticeship schemes and training programs. In fact PEL has been more than just
an industrial unit. It has been acting as an institution working for the advancement
and development of electrical engineering know how and technology in the country.
Through its apprenticeship schemes and training programs for engineers and
technicians who have exhibited high proficiency in their profession, both in and
outside Pakistan.
The company comprises two divisions:
 Appliances Division
 Power Division
1.1 APPLIANCES DIVISION
 Refrigerators
 Air Conditioners
 Deep Freezers
 Microwave Ovens
 Washing Machines
 Water Dispensers
1.2 POWER DIVISION
 Distribution Transformers
 Power Transformers
 Energy Meters
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 Switchgears
 Grid Stations
 EPC Contracting
2) Appliances Division
PEL is among the Market Leaders in Home Appliances Business with a very good
Presence and Market Share since year 1987. Growing demand is due to innovation
and product development through R&D
2.1 Refrigerator:
PEL started Refrigerator Manufacturing in Year 1987 with the technical assistance of
IAR-SILTAL Italy. Its cooling performance is tested and approved by Danfoss
Germany while the manufacturing facility is ISO 9002 certified from SGS
Switzerland.
2.2 Air Conditioner:
PEL is among the Pioneers of Window AC Manufacturing. Split A.C has been
replaced with Window Ac due to change in Fashion and Market demand. PEL Split
A.C is well received in the market due to its durability, quality and brand equity.
2.3 Deep Freezer:
PEL Deep Freezers were introduced in 1987 in technical collaboration with

ARISTON Italy. Due to durability and high quality, PEL Deep Freezers are preferred
choice of corporate Institutions like Unilever and Engro.
PEL Ice Cream Cabinets Are best choices of “Walls” and “Omore’’ Ice cream
Products.
2.4 Microwave Oven:
PEL Electrical Home Appliances have always been well received in Market. The
company has started microwave oven three years back.
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To have competitive Product range PEL launched Microwave Oven with PEL Brand
and Warranty which is well accepted by the large audience.
3) Power Division
PEL is among the pioneers of Electrical Capital Goods and has been serving the
Power utilities, Industries, individual customers, housing and commercial projects by
providing cost effective solutions.
PEL is now technology forerunner and market leader in providing new products and
services to meet the challenges and technology intensive needs of its customers.
3.1 Power Transformers:
Extensive Experience and success in manufacturing distribution transformer led to

establishment of Power Transformer Division in 2005. Since its birth this division has
produced Transformers of rating 31/40 MVA, 20/26 MVA and 10/13 MVA FOR
132KV level.
3.2 EPC Contracting:
PEL EPC Division was formally established in 2006 and delivers Custom made
designed solutions in following areas.
 132 & 220 KV Grid Station for Power Utility Companies.

 132 and 11 KV Substations for Commercial & Industrial Customers.
 Electrification of housing Projects and Industrial Parks.
3.3 Energy Meter:
PEL Single Phase and Three Phase Static Meters are manufactured as per
Specifications of Utility Companies licensed from ABB USA and its quality is certified
by KEMA Laboratories.
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4) History of PEL:
PAK ELEKTRON LIMITED was set up in 1956 as a joint venture with one of the
large stand renowned manufacturers of electrical equipment Messrs. AEG of West
Germany for manufacturing Transformers, Switchgears and Electric Motors etc. The
entire job of machinery requirements and layout of the factory building was planned
and implemented by AEG who produced very well-balanced facility for the design
and manufacture of the above equipment and the commercial production was
commenced on 22 November 1956.Up to 1962, when AEG finally phased out, the
designing and manufacturing of all equipment was carried out jointly by AEG experts
and PEL personnel. PEL staff, in the meantime, had received specialized training in
USA and West Germany which enabled PEL to establish itself as the leading
manufacturers of electrical equipment in the country with an excellent reputation for
high quality and thus PEL came to be known as "THE QUALITY CONSCIOUS
COMPANY".
After conclusion of agreement with AEG, total shareholding of AEG was purchased
by the then sponsors - Malik Brothers. The production continued with AEG designs
with much greater emphasis on the quality and reliability of the products which
earned unique distinction of supplying electrical equipment to projects of paramount
national importance like Mangla Dam and Tarbela Dam Projects. PEL equipment
was approved by consultants of international repute including Preece Cardew &
Rider (England), Binnie & Partners (England), Harza Engineering International (USA)
and Miner & Miner International Inc. (USA). The majority shares were acquired from
Malik Brothers by Saigol Group on 11 October 1978 and immediately on takeover
the new management chalked out both long term and short-term plans to put the
company back on the path of progress. As a part of first phase of its BMR
Programmer the new management injected the additional working capital of Rupees
8.98 million and Bridge Loan of Rupees 7.50 million (against the public issue of its
shares) was provided by the ICP-led Consortium. As a part of long-term plans, the
manufacturing of window type Air conditioners was taken up in 1981 and was
immediately established for quality.
The company launched the second phase of its BMR and expansion of the
existing product line in the year 1987 and imported machinery for the manufacture
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of Refrigerators and Deep-freezers for a total value of Rupees 22.11 million. For the
project National Bank of Pakistan - the leading bank of the company provided the
financing. Like Air conditioners these products have also been well received by the
local market, which speaks highly of the confidence, the consumer has developed in
the quality products manufactured by the company? During the year 1990
the company has signed an agreement with Messrs HITACHI of Japan for the
manufacture of Vacuum Circuit Breakers. The company has entered into an
agreement with Pakistan Industrial Credit and Investment Corporation (PICIC) for a
foreign currency as well as local currency loan of Rupees 25 million for the
expansion, balancing, modernization and replacement of the four existing plant. The
machinery has come into operation in October 1991 and with the balancing,
modernization and replacement of machinery, the production capacity of Refrigerator
Section will reach a level of 252,450 cubic feet. The management of the Company
decided to further expand its operation by establishing a plant for the manufacture
of compressors for refrigerators and deep freezers. The technical know-how
agreement has been signed with M/S NECCHI Compressors, Italy for the assembly
and progressive manufacturing of compressors for refrigerators and deep freezers.
5) Electronic Industry in Pakistan:

Companies in Electronics Goods Sector in Pakistan are
 Pak Electron
 Waves
 Orient
 Siemens Pak
 Singer Pak
In conclusion, I can say that the science of electronics is one of most important
science today. We all witness the influence of electronics on our life in good and bad
side as well. The process of development was relatively quick and interesting. The
best brains of 20th century were this process. However, the history of electronics has
not ended, as we see, and our using of electronics is the best evidence for it.
5.1 Role of PEL in electronic Industry:
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PEL is market leader in Air conditioners throughout Pakistan. Due to the better
quality of its A/C the brand loyalty is high. It has introduced different new models to
attract the customers. General is No.2 in market.
In refrigerator PEL is 2nd in the Market in respect of sales. While Dawlance is

number 1. PEL is striving to become No.1 in next 3 to 4 years by introducing new
Models and modifications in their products. The market for refrigerator is growing
while for Air-conditioner it is stagnant.
There is very intense competition in the home appliance industry. The companies in
the industry are trying to capture the market by aggressive advertisement new
product launching, bringing innovative features in existing products.
The active companies in this industry are:
 PEL
 LG
 Dawlance
 Waves
 General
5.2 Nature of the Organization:

Pak Elektron Limited (PEL) falls in the category of consumer durables. This category
in the past was considered as luxury goods. People used to think it like this because
the per capita income was low. Most people used to buy washing machines and
deep freezers to show them off but with technological advancement, knowledge and
increase in disposable wealth now the deep freezer has become the necessity of
every house whether it is small or large.
6) Main Competitors:
PEL is the oldest and pioneer organization in home appliances market. With the
passage of time many players have entered in this business and now the
competition has become intense. PEL has celebrated its 50 years anniversary in
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2006 but the Dawlance which has completed just its 25 years of birth has risen itself
to No.1 brand in home appliances market.
Appliances Division Power Division
 Dawlance  Siemens
 Waves  Climax
 Haier  Transfab
 Mitsubishi  J&P
 Orient  AB Ampere
 Singer  Ahmad & companies
 Panasonic  Feco
 Areva
 Fico
 Pempam
 Tariq Electric
6.1 Market Share – Major Competitors:
Company Market Share
Dawlance 50.5%
Haier 7%
Orient 2%
Waves 7.5%
Others including (Mitsubishi, SG, Super Asia etc) 3%
While the PEL has sliced its market share about 30%.
6.2 Lahore Factory:

In Lahore Factory, Refrigerators, Transformers, Energy Meters, and Switchgears are
produced. Previously, Window AC and Deep freezers were also produced in Lahore
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Factory but PEL quit these operations. However, PEL has restarted the production of
Deep freezers once again at Lahore factory.
6.3 Location:
PAK ELEKTRON was set up in 1956, at that time the location site was selected
outside Lahore City 14km Ferozpur road, Kot Lakhpat Industrial Area. The site for
the purposes of the operation was selected by adopting the judgmental method and
no sophisticated technique was utilized. The following were the dominant factors,
which moved the management to select the site for the facility location.
The major cost involved in any organization is in the shape of the construction costs.
That took a large amount. But at that time the labor was available at the cheaper
rate. Due to which the site was selected at that place.
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PAK ELEKTRON
LTD.
Appliances
Power Division
divisin
Distribution Manufactruing Tarding

Transformers division Division
Washing
Energy Meters Refrigratior
Machine
Microwave
Switchgare Deep Freezer
oven
Power
Air conditined Genrator
transformer
Grid Station Televison
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7) Vision & Mission of company:
7.1 Vision:
“To excel in providing engineering goods and services through continuous
improvements”
7.2 Mission:
 To provide quality products and services to the complete satisfaction of our
customers and maximize returns for all stakeholders through optimal use of
resources.
 To focus on personal development of our Human Resources to meet future
challenges
 To promote good governance, corporate values and a safe working environment
with a strong sense of social responsibility.
7.3 Company’s objectives:

 The continuous improvement of all products and services through total
involvement of employees.
 The development and strengthening of joint ventures and partnerships with
external and internal customers and suppliers.
 Providing innovative and higher quality products to achieve total customer
satisfaction by understanding their requirements and anticipating their future
expectations or needs through:
 Monitoring Annual Targets for quality improvement in all areas and function of the
organization.
 Valuing people by understanding and drawing upon their strengths i.e., abilities
and knowledge and make efforts for their training and development.
 With a dedicated team of professionals, the company is striving to improve the
quality of life in Pakistan homes through reliable equipment for power distribution
and home appliances.
 The growth in the size of the organization develops better business practices and
builds up greater resources.
 The aspiration to capture the complete product family of the product.
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PART TWO:
COMPANY MANAGEMENT
SYSTEM
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8) Organizational structure:
The structure of the Pak Elektron Limited is Hybrid, because the organization
combines the characteristics of functional and divisional structure in its
organizational structure. As the organization has grown large and have several
products and markets so it is organized into self-contained divisions of some type.
Functions that are important to each product and market are decentralized to the
self-contained units. However, some functions that are relatively stable and required
economies of scale and in-depth specialization are centralized at the management
level. The functions of Accounting, Finance, Human resources, Industry relations,
R&D and Information technology are same for the both divisions but each division
has its own separate functions of sales, production and marketing
8.1 ORGANIZATIONAL CHART
GM T&M
Managing
Power Division GM Marketing
Director
GM Power
Projects
General
Manager Sales Sr. Manager
Production(AD
Chairman Director Appliance GM )
operations(AD) Division Manufacturing
Sr.Manager QC
&A
Manager
GM Finance
Marketing
GM HR
Shared
Services
Chief Audit
Executive
GM IR&A
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8.2 DESIGNATION IN PEL

PEL has the following designations:
 Chairman BOD
 Managers
 Executives
 Line Staff
 Workers
8.3 RESPONSIBILITY OF MANAGEMENT
 Board of Directors
All decisions regarding:
 New investments.
 New borrowings.
 Approval of annual/ half yearly/ quarterly accounts/ dividend/ bonus etc.
 All management and operational decisions.
 Chief Executive
 Overall controlling of the operations.
 Executive Director
 To manage all the business activities of the company.
 Company Secretary
 To manage all secretarial jobs as required by the companies ordinance.
 Technical Directors
 To manage the operational activities of the company.
 To improve the quality/standard of the products.
 To suggest the modernization/expansion plans
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 Director Finance
 To manage the all-financial matters of the company.
 To manage/improve the management information system.
 To manage the accounting, costing, taxation, auditing and all other related
matters.
 General Manager Purchase
 To manage the local purchases and imports of the company.
 General Managers/ Managers Accounts
 To manage the monthly, quarterly, half quarterly and annual accounts of the
company.
 Managers Taxation
 To manage all the matters related to taxation.
 General Manager Administration
 To manage the personal and the administration matters of the company.
8.4 Finance Department:
Finance
Material
Pledge Gurantee Budgeting Treasury
Planning
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Finance manager works under General Manager Finance. His span of management
contains three finance officers. Major function of this department, obviously, is to
arrange funds for company and also allocate funds. These officers perform
significant role at their stead.
8.4.1 General Manager Finance:

His duty is to take major financial decisions.
8.4.2 Manager Finance:

 Rate negotiations
 Handling cash in & out
 Bank relations
 Handling short term and long-term funds requirements
8.4.3 Assistant Manager Finance:

 Reports to manager finance
 Arranging funds for production
 Preparation of Budget
8.4.4 Senior Finance Officer (General):

Fund arrangement is a major responsibility of this officer, including leasing,
modaraba, and secured and unsecured loan arrangements. He keeps check on
inventory in Bond houses against which company finances. He is responsible to
release raw material from bond houses for production and sales purpose.
Check on working capital of the company is another task that falls in his job
description. What are the receipts and due payments for a day is also a matter of
concern? Moreover, he also coordinates with other departments..
8.4.5 Finance Officer (Treasury Finances):

In PEL Finance department is working under the supervision of four managers and
one General Manager. This department is comprised of four sections, namely
 Budgeting Section
 Guarantees Section
 Material Planning Section
8.5 ACCOUNTS DEPARTMENT:
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Accounts
PEL INTERNSHIP REPORT Department
All matters, starting from “Book keeping” to formulation of financial statements are
supervised by “Account manager”. Accounts manager directly reports to General
Accounts
financeCost
Inventory
section He Import
manager. section his staff into five-section
has divided Payable Salary ii).
I). Cost section, section
Import
section
section
section, iii). Inventory section, iv). Salary section and v). Accounts Payable section.
On the basis of these bookkeeping activities financial statements and relevant
statements are prepared, which necessitate in decision making at corporate level.
8.5.1 Functions:
This particular department has the responsibility to prepare and keep an up-to-date
record of following:
 Financial keep of daily, including the income statement and balance sheet.
 Book keeping of daily monetary transactions.
 Production maintenance reports
 Cost data on labor, materials and overheads.
 Remittances and loans
 Expense reimbursement
 Tax statement
 Financial deals with the banks, leasing companies, modaraba companies, and
other government agencies through Finance Center.
8.6 IMPORT SECTION DEPARTMENT:

PEL is an engineering concerns company introducing Deep freezer, Air-conditioner,
Refrigerator, Energy meters, Transformer and Switchgears. Not even any one
product is entirely manufactured in PEL by locally available raw material. But
practice is that, company imports a large portion of raw material from foreign
suppliers.
Import section plays an integral role in achieving cooperate goals, as it is responsible
for all imports concerned matters. Usually, this department imports:
 Raw-material
 Parts
 Equipment
 Machinery
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Import activities are started from marketing- plan, in general. This plan is forwarded
in systematic way and finally import plan is formulated. On the bases of import plan,
import section allocates their activities.
8.6.1 Pre-shipment activities:

 Pre-qualification of supplier(s):
Before submitting “request for quotation” import officer assess supplier(s) either they
fulfill criteria for pre-qualification or not. Supplier should be certified by ISO 9000 or
should have consistent performance regarding,
 Competitive price.
 Adherence to agreed shipment schedule.
 Documentation without discrepancies.
 Backup for technical assistance (if required.)
 Import purchase order:
After selection of most appropriate supplier, order is placed. In charge import

receives a Performa invoice/ sales contract from supplier.
 Opening letter of credit:
On the month of basis schedule for L.C. is prepared with reference to annual
material plan. Company mostly engages with National Bank of Pakistan in respect of
opening L.C. When bank opens L.C, commercial department faxes or mails it to
supplier.
Follow up the shipment schedule:
In case of delayed shipment, L.C is required to extend further. Import officer is also
responsible for that.
8.6.2 Post-shipment activities:

 Movement of consignment from Karachi:
After opening L.C supplier sends four types document to company through fax or
mail such as:
 Commercial Invoice.
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 Packing list.
 Bill of lading.
 Certificate of origin.
These documents are treated as non-negotiable documents. Company receives
original shipping documents through Bank.
 Custom clearance:
Custom clearing agent of the company submits “Bill of entry” to custom authority,
and clears the consignment.
 Receipt of consignment at receipt store of the company:
After custom clearance the consignment is free. Now consignment is received at
receipt store of the company. Receipt store officers assure quantity and quality of the
consignment. Otherwise, company claims for damage.
8.7 PROCUREMENT:
PEL has state of the art methods of production and they also outsource the products
and raw material not only from Pakistan but also from Asia, America, Europe, and
Africa. So for this purpose PEL has two different departments for procurement, which
are:
 Local Procurement
 Foreign Procurement
8.7.1 Local Procurement:
Local Procurement department is responsible for all the raw materials that are
required for making various products in the factory. It includes from nails to large
metal sheets. At the start of each financial year they receive a major plan from the
management, which highlights all the raw material required for each product. Dates
and maximum time limit for raw material requirement is also mention in this major
plan.
8.7.2 Foreign procurement:
Responsibilities and duties are same as Local procurement but they vary in the
dimension that, they have to arrange the raw material from abroad. They also
receive same plan as local procurement for the whole financial year and develop
milestones to carry out the plan execution properly.
8.8 HUMAN RESOURCE DEPARTMENT:
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8.8.1 Recruitment & Job Analysis:

In PEL the HR department performs a detailed procedure for the recruitment and
selection of its employees. First the HR department list down all the activities which
are necessary to perform that job. For that purpose, they have prepared a Job
Analysis Information Sheet which covers all the activities of that job. HR managers
give this form to a number of employees performing the identical jobs for which the
new recruitment is to be done.
The HR managers also conduct interviews from the employees to get to know that
whether they are performing their duties well or not and to get the information about
the job by asking employees about the following
 Job identification
 Job summary
 Responsibilities and duties
 Authority of employee
 Standards of performance
 Working condition
 Job specification
 Job description
Considering the following areas can assess the level of motivation among the
organizational participants
 Job Design
 Performance Appraisal
 Goal Setting
8.8.2 Job Design:
The designing of jobs at PEL offers the incumbents an opportunity to use their skills
with a fair degree of autonomy. This enables the individuals to view their jobs as
interesting, important and challenging and consequently, they pour in a lot of hard
work at work place. However the feedback exists only at moderate levels that need
further improvement.
8.8.3 Performance Appraisal:
Annual Appraisal system is followed at PEL in order to ensure successful
achievement of set objectives and to motivate the employees. During evaluation, the
superiors usually offer friendly attitude to their subordinates. However, a
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considerable number of respondents were not satisfied with their superiors’ attitude
during performance appraisal. The same respondents further cited that they only get
identification of their mistakes out of such review. Others were satisfied that they not
only get identification of mistakes but also the possible solutions to avoid those in
future which helps them to keep on the right track.
8.8.4 Goal Setting:
In most cases, the superiors and the subordinates set the goals mutually. Moreover,
these goals are not such that offer the employees an ample time to accomplish
them; rather the goals are made somewhat difficult to stretch the employees’ efforts.
8.8.5 Incentive Systems:
The incentives can be split into two categories
 Short Run Incentives
 Long Run Incentives
o Short Run Incentives:
 Bonus (Normally given once a year)
 Increments (Normally given once a year)
 Promotion (Based on performance)
 Traveling allowance (For those who go out for company's business)
o Long Run Incentives:
Apart from the above-mentioned short run incentives, the company also provides
long run incentives like
 Provident Fund
 Group Insurance
 Old Age Benefits
CORPORATE Policy:
To remain competitive in appliances and electrical capital goods industry through
continued focus on consumer needs with improved product quality and after sale
service, research and development, cost economization and efficiency improvement.
8.9 STATEMENT OF ETHICS AND BUSINESS PRACTICES
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We are serving the nation through manufacturing and sales of electrical goods and
home appliances. We are committed to represent the ethical responsibilities of
company operations. In recognition of this, our commitment reflects the value
statements.
As directors, and employees, we all are passionate to our contents and strive to be
model of the principles. It is an organization of people who are united to achieve the
common goal. We are accountable for all our actions both individually and as a
company. We act with absolute honesty, integrity and fairness in the way we conduct
our business and in the way we live and act
We realize the importance of the human life and company's all other resources. We
are committed, all the time, to the safe and reliable operations of our power complex,
and to the incident-free workplace. We ensure that this commitment shall remain one
of our utmost priorities
We are persistent about delivering our promises to the customers as our success
comes only with the success of our customers. We carried out jobs keeping in view
the satisfaction of our internal and external customers. We believe in cost effective
quality of work with the aim of excellence in everything
We value the safety, security and peace of mind of our employees. We recognize
and affirm the unique and intrinsic worth of each individual and treat all with
compassion and kindness. We value treating each individual with an attitude of
mutual respect, caring attention and fairness
We observe strict compliance in the organization discipline with respect to all the
company rules and regulations
We embrace progress and growth as the life blood of our organization that gives us
the freedom to fulfill our vision and mission. This includes company's growth as well
as the career growth of the employees
We value and promote teamwork by providing a work environment that helps to
recognize the benefits of the individual and collective wisdom which is achieved
through empowering the employees to create and act based upon the highest level
of ethical conduct
We strive to enhance the quality of life of our surrounding community and set the
precedent for the corporate sector to recognize the responsibilities. We value the
promotion of mutual trust between the community and corporate sector
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9) CODE OF CONDUCT
Honesty and integrity: We shall demonstrate highest standards of honesty and
integrity while conducting our employment activities.
Unlawful activities: We shall not engage in any activity that is believed to be in
violation of any law.
Unfair advantage: We shall not abuse our position in any manner to influence any
person, including subordinates, to provide us any favor, whether financial or
otherwise.
Conflict of interest: We shall not allow ourselves to be put in a position, while
representing the Company in dealings with third parties, in which an actual or
perceived conflict of interest exists..
Confidentiality: We shall not use or disclose the Company's proprietary or
confidential information to make personal gains or benefits
10) CORE VALUES
Our employee’s performance can only flourish in a sound work environment. That is
why ENGRO is committed to supporting its leadership culture through systems and
policies that foster open communication, maintain employee and partner privacy and
assure employee health and safety.
1. Safety, Health & Environment

2. Ethics and Integrity
3. Leadership
4. Quality & Continuous Improvement
5. Enthusiastic Pursuit of Profit
6. External & Community Involvement
7. Candid & Open Communications
8. Enjoyment & Fun
9. Innovation
10. Individual Growth & Development
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Board of Directors
Managing Director
Four General Managers
Five Managers
Five Engineers( Section Incharge)
Three to Four Foremen
Twenty to
Thirty Workers
11) Management Functions:
11.1 Planning:
Refrigerator:
Planning is very much important function of management. Of PEL company makes
the planning regarding refrigerator by observing the market. How much a company
can sale in a particular segment’s there any chance of growth is also in the planning
of the company refrigerator.
11.2 Organizing:
Refrigerator:
The organizing regarding refrigerator how to make availability of refrigerator assured.
Taking in the account the policy regarding refrigerator of the company how much to
produce and when to produce etc…Almost all the department are involved in
organizing and also how much margin to give to the dealers.
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11.3 Leading:
Refrigerator:
Head office mainly leads all departments regarding refrigerator. All the sub ordinate
department officers lead the related department and employees and loyal to the
head office for their working. There is check and balance situation for every
department.
Controlling:
Refrigerator:
Controlling is the main functions after making the pervious steps. Managers of each
department control its own department working and are liable to the managing
director. There is check and balance situation. In controlling, monthly and annual
basis analysis are made. How much sale is made and for the betterment of the
product research and development department then do its job.
11.4 Transportation mode:

PEL is mostly using the road as the transportation mode. If they are Supplying. Their
products intercity then the trucks are used. But if they are sending it to outstation
then they use large trucks to send them at the price. The reason for their selection of
this mode is that they have to supply to the Destination of the user or customer.
11.5 ISO Certified Product:

The certified product of PEL is Energy Meter. The productions of meters are started
on August 1994. In January 1997 it got the ISO 9002 certificates. After the
certification the complaint level of every meter dropped to less than 0.07%.
On the job training competency certificate is issued. The team assesses weather
they learn anything or not. The backbone of this system corrective and prevention
action. All the workers are trained here for skilled jobs.
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PART FIVE:
MARKETING MIX
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12) Product Mix:
12.1 Products:
The products at the PEL can be categorized into two divisions:
 Appliances Division Products

 Power Division Products
13) Appliances Division:

PEL’s Appliances Division is the flag carrier of the Saigol Group. This Division of
PEL consists of home appliances manufacturing.
In 2006, the Company has started manufacturing of split type air conditioners of
various capacities as the customer choice has shifted from window type to split type
air conditioners. The product has received good response from the market, which
encourages the company to multiply its production in the coming years.
Today, PEL has become a household name. Its products are not only in great
demand in the local market but the Company has also started exporting its
appliances to foreign markets.
Home Appliances Division consists of following products:
1. Window type air conditioners “PEL”.

2. PEL Split Air Conditioners
3. Refrigerators (Direct Cool)
4. Floor Standing Air Conditioner
5. Microwave Ovens
6. Washing Machines
7. Diesel Generator
8. Water Dispenser
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 PEL Air Conditioner:
PEL window-type air conditioners were introduced in 1981 in technical collaboration

with General Corporation of Japan. Ever since their launch, PEL air conditioners
have a leading position in the market. PEL air conditioners cooling performance has
been tested and approved by Copeland and ITS USA. With the shift of user’s
preference from window type to split type air conditioners, PEL has started
manufacturing split type air conditioners.
PEL recently launched its Cool life Split air-conditioner which is a technologically
advanced model specially designed for Pakistan market. This masterpiece from PEL
provides maximum cooling even at very high.
 Free Installation Kit

 Self-diagnosis and auto-protection
 Auto restart function
 Two-direction air flow (SLR)
 Super quiet operation

 Maximum dehumidification
 Anti-rust cabinet
 Free Installation Kit

 Self-diagnosis and auto-protection
 Auto restart function

 PEL Refrigerators:
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The manufacturing of refrigerators started in 1986-87 in technical collaboration with

M/s IAR-SILTAL of Italy. Like the air conditioner, PEL's refrigerators are also in great
demand. Today, PEL Crystal has 30% market share. Its cooling performance is
tested and approved by Danfoss, Germany and its manufacturing facility is ISO 9002
certified by SGS Switzerland.
Different models of PEL refrigerators are given as under.
 Door - Galaxy
 Compressor - Danfoss
 5 years Compressor & 1 year Parts
Warranty
 Door - Galaxy
 5 years Compressor & 1 year Parts Warranty
 Door - Galaxy
 5 years Compressor & 1 year Parts
Warranty
 Door - Galaxy
 Door - Galaxy
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 Door - Galaxy
 PEL Deep Freezers:
PEL deep freezers were introduced in 1987 in technical collaboration with M/s
Ariston of Italy. Because of durability and high quality, PEL deep freezers are the
preferred choice of companies like Unilever.
 PEL Microwave Owen:
PEL the trustful company name in home appliances all over the country now
introduced all new models of "PEL Power Wave" Microwave Ovens. Now PEL
customers can have four models of PEL Power Wave in which they can enjoy the
grilling feature as well. PEL Microwave Ovens are available in different sizes, inner
cavities (steel & painted) and features.
 5 years Magnetron Warranty

 Smart Intelli-menu
 360-degree cooking system
 Enersave features
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 5 years Magnetron Warranty

 Smart Intelli-menu
 360-degree cooking system
 Enersave features
14) Power Division:
PEL Power Division manufactures energy meters, transformers, switchgears, Kiosks,

compact stations, shunt capacitor banks, electric Motors, Energy Meters etc. All
these electrical goods are manufactured under strict quality control and in
accordance with international standards.
PEL is one of the major electrical equipment suppliers to Water and Power
Development Authority (WAPDA) and Karachi Electrical Supply Corporation (KESC),
which are the largest power utilities in Pakistan.
In spite of stiff competition from emerging local and multinational brands, PEL
Group's appliances and electrical equipment’s have remained in the spotlight due to
constant innovation. Strategic partnership with multinationals of repute have enabled
the PEL Group to incorporate new technologies into existing product ranges, thus
giving the Pakistani market access to innovative, affordable and quality products.
This division consists of following products
1. Power Transformer
2. Distribution Transformers
3. Energy Meters
4. MV & LV Switchgears
5. Control 6 Protection
6. EPC Contracting
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 Transformers:
PEL’s first major power product being produced since 1956 is Distribution
Transformers up to 33KV and 5000KVA capacity. These oil-immersed transformers
are suitable for both indoor and outdoor installations, being manufactured as per IEC
76, BSS 171 or VDE 0532 standards. Sealed tank designs are available up to
200KVA while all larger size is conservator type. PEL Transformers have been
tested in KEMA labs Holland, against short circuit withstand in addition to Routine
Type and Impulse Tests in Pakistan.
 Switch Gears:
PEL’s second major power product is High Tension and Low-Tension switchgears
being produced for indoor and outdoor installations complying with the latest
international specifications i.e., IEC, BSS or VDE, PEL’s switchboards are sheet
fabricated totally enclosed, floor mounting vermin and dust proof. These are supplied
with factory fitted relevant components and copper bus bars internal wiring, terminal
blocks etc. in preprinted form. Out switch gear manufacturing line consists of High
Tension Indoor or Outdoor type switch gear, metal clad, draw out type with vertical or
horizontal isolation can be supplied up to 33 KV voltage during rating and short
circuit level of 750 MVA as per customers’ requirements.
15) Services Mix

 People
 Process
 Physical Evidence
15.1 People:
People is one of the major elements of service marketing mix and in PEL’s case it is
more important because employees in Customer Service Department and their
behavior towards customers defines what PEL’s actually is. The companies like PEL
have to focus on better customer service and customer satisfaction to attain a
healthier position in the market.
15.2 Process:
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Service process is the way in which a service is delivered to the end customer.
Service providing process should be simple and easy for the customers to attain the
customer loyalty. People prefers to buy those products whose product image is
strong and After Sale Service is good. PEL has a very simple process of providing
services. You just have to register your complaint first then their representative will
visit you and provide you a solution to the problem.
15.3 Physical Evidence:

It is an important element of services mix because people can evidence which
company is providing them a good service. For example, one company is offering a
Free Home Delivery service on buying of its product while other isn’t offering it.
Which one will you prefer? Obviously the one with the Free Home Delivery service.
16) Marketing procedures & policies:
16.1 Promotions:
 A good mix of push and pull is maintained by PEL.
 Product lines are advertised separately in order to create better product
awareness among the end customers.
17) Advertising Procedure for a Commercial ad:

The advertising is the one of major function of Marketing A.D, and they have
designed very affirmatively, it begins with the need of conveying the message which
is desired by managers, it could be awareness about new launch, amendments in
existing products, introduction of new models, revitalizing the continual of running
campaign. Then it put forward to General Managers, who approved it, after that the
ultimate design is sent to RED which prepared the first copy of the design or Art work
and also prepares the estimate of whole job. Then the project is again returned in
Marketing A.D, where managers sit asides the RED personals and decide whether
they want to run this ad or not. If the ad is feasible in all aspects the managers
decide by which vendor this ad will be created. Most of time RED does this job as it
is the in-house agency and liable for this. But if they are already very busy in some
other job or job is very minor in nature and could be economical by performed out-
40 | P a g e
sources, then it assigned to some parties like Astrontech, Alhafeez Printers,

Sahibzada Enterprises, etc. when job is assigned the vender provides a blue print of
actual ad and also the invoice of job. When the ad actually runs on media the
payment is made by finance dept. and one copy is filed for future prospects. This
filing enables managers for estimation next year.
17.1 Advertising Messages:

The advertising messages are very attractive and thoughtful which are now
created by RED Communications. The current punch line is “Change your life”, it
is also corporate slogan and were invented instead of “Aaj bhi kal bhi” due to
many reasons in which the stagnant out-look was main issue, the new message
describes the stories of success which leads in changing lives with enticing
styles and captive out-look of all PEL products. Here we scrutinize some
messages which were previously being used for different products.
 For A.C. the following messages were used in different ads
"Every second air-conditioner sold in Pakistan is a PEL"
"We are the largest manufacturers of No. 1. A.C. in Pakistan."
 Advertising Messages for Refrigerator/Deep freezer
"All New PEL"
"All New Style"
"All New Technology"
17.2 Ad – Viewer:
PEL has also hired a company by the name of Ad-Viewer. Ad-Viewer gives PEL
printed information about the number of their ads appearing on Electronic media
channels, like GEO, ARY, ATV, PTV, FM 106.54, FM 89, etc. duration and the
timing of appearance. This helps the company to know whether the ad actually
appeared on the station or not for which they had booked a spot. If the ad does
not appear PEL can contact station authorities and get a refund of their
payment. PEL renews contract with Ad - Viewer every year.
17.3 Selecting Advertising Media:
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While deciding for advertising media each (air-conditioner) product manager

along with "RED" people consider the following criteria:
1. Number of people who are exposed to the ad during a given period i.e.
reach.
2. Number of times an average person is exposed to an advertising message
during a given period or in other words frequency of message.
3. Media impact or qualitative value of a message exposure through a given
medium.
4. The cost of media to be selected
5. Media habits of target market
6. Nature of the product.
PEL usually uses three types of advertising media for the advertisements:
 Electronic Media
 Print Media
 Outdoor Media
17.4 Electronic Media

PEL also broadcasts and telecasts messages on every special occasion in the
country.
17.5 Print Media
Following mediums are used in print media by PEL.
 News papers
 Magazines and Periodicals
 POS materials
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 News Papers:
PEL is using a combination of English and Urdu newspapers for advertising

purpose. The reasons for using this combination is that the elite class in our
country reads mostly English newspapers while middle class reads both and
lower class reads Urdu newspapers mostly. During the season PEL advertises
on front, middle and last pages. The ads during the season of sales are big in
size. During off-season small ads are placed on the inner pages. Their purpose
is to remind the people about PEL appliances.
 Magazines and Periodicals:
Along with newspapers PEL is also advertising in different magazines and
periodicals as the life of ads in magazines is long, their print quality is good as
compared to newspapers and no extra charges are to be paid for colored ads.
Another benefit is that it is easy to target a specific market by placing ads in the
magazines, which they read. Presently PEL is advertising in Libas, She, Aajkal
and Banking Business.
 P.O.S Material
The POS material (point of sale) is published of different campaigns and of all
the products which help the customers and the dealers to know the information.
17.6 Outdoor Media

The importance of outdoor media cannot be ignored as it helps as reminder for
company's product when customers are on their way to buy. Before 1997 PEL
did not pay much attention to outdoor media but now PEL is using outdoor
media as a competitive tool and is advertising throughout the country at every
important spot in different cities. Outdoor media vehicles (billboards) are erected
in those places where competitors have advertised or where there is rush of
traffic all the time.
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Generator Launch Dealer Shop board
17.7 Exhibitions:
PEL participate in exhibition time to time. It only participates in the electronic
exhibitions in order to recall the brand in the minds of the customers.
17.8 Direct Advertising:

For air conditioner, refrigerator, deep freezer, and television PEL also uses
direct advertising. PEL has printed brochures for these products containing
information regarding each aspect of these products. To make brochures
attractive they are featuring models and are printed on an expensive paper. All
the brochures are colored; the brochures are distributed both by the dealers or
people at the head office. Brochures are also available on the website.
17.9 Direct Mail Advertising:

PEL has launched Split in 1997 by the name of Carrier. As it was an expensive
product it was not being advertised on television. PEL used "Direct Mail Shots"
(DMS) for the advertising of split. The DMS contains brochures of Split, a T-Shirt
on which carrier was written, a key chain, a sticker an introductory letter to the
person receiving DMS and a handout. These DMS were sent only to the
important people of Pakistan. The logic was that those influential people talk to
too many people every day and most of them could afford a split financially.
Furthermore, such people can act as opinion leaders as they have a place in
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society and people listen to them. They are the best source of advertising. Now
a day’s carrier is also advertised through television and newspapers etc.
17.10 Advertising Specialties:

Each year PEL distributes thousands of calendars, diaries, Wall Clocks, and
now a day’s Mission and vision of PEL to its dealers and customers free of cost.
These have the name of the company. In calendars all the appliances apart from
the models are also featured. Key chains bearing PEL's name are also given to
the dealers to distribute. While diaries and clocks are also given away as
presents or gifts which earns a huge number of favors from potential customers.
18) Pricing policies & procedures:

Prices are kept according to competitor level. PEL considers market should not
shrink because of pricing. Prices do not depend on seasons.
 PEL more often uses competitor-based pricing strategy moreover other strategies
are also practiced by PEL.
 A competitive pricing strategy is followed for all the ranges except the Jumbo
Range.
 Premium price strategy is followed for the Jumbo range as PEL has got the
monopoly in this product.
19) Distribution Policies & Procedures:
19.1 Distribution Strategy:

 There is an increase in the dealers’ network base especially in smaller towns
where our network base is not that strong.
 Sub-area offices are developed in D.G. Khan, Gujrat and Quetta.
 In order to have a better control over the market and eliminate the dealers
bargaining power, which is mainly due to high stock levels at the dealer’s
end, a policy for improved stock maintenance at the area ware houses is
introduced i.e., increase in warehousing in areas, which will help in having a
better control over the market.
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SWOT ANALYSIS
19.2 Strengths:
 Strong brand image
 Strong dealer network
 Strong quality, sale and service
 Market leader in WRAC (Window Room Air Conditioner)
 Monopoly in power market
 Number 2 in Appliances with LG
 Contracts with Government of Punjab
 Strong management
 Strong R&D department
 Public limited company
19.3 Weaknesses:
 Financial Problems
 Low level of satisfaction of Employees
 Lack of Advertisement
 System Variations
 Lack of Product Range
 In-efficient utilization of resources
19.4 Opportunities:
 Exploration of Market in Pakistan
 Rising Population
 Increase in Product Range
 Exports opportunity
 Increase in production capacity
 Increase investment in Power Sector
19.5 Threats:
 Strong Competition
 Chinese Products
 Decrease in Currency Value
 Instability of Government
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PART SIX:
ACCOUNTING AND FINANCE
SYSTEM
47 | P a g e
19.6 FINANCE DEPARTMENT

Finance Management is the lifeblood of any industry. If this area of corporate
activities is improperly handled, a company may lead insolvency despite having
all the resources and opportunities. Therefore, proper financial management is
vital for every business concern and PEL is not lacking behind over here.
At PEL finance department for both division (Appliance and Power) is separate but
their procedure is same. To control both other departments called “Finance Center”
is established.
.
19.7 ACCOUNTS DEPARTMENT
The Accounts Department looks after the financial matters. Accounts

department for both power and appliances division have similar functions as
below.
19.8 Functions
This particular department has the responsibility to prepare and keep an up-to-
date record of following:
 Financial keep of daily, including the income statement and balance sheet.
 Book keeping of daily monetary transactions.
 Production maintenance reports
 Cost data on labor, materials and overheads.
 Remittances and loans
 Expense reimbursement
 Tax statement
 Financial deals with the banks, leasing companies, modaraba companies, DFIs
and other government agencies through Finance Center.
The finance department maintains record of all its expenses through vouchers.
Generally, the following types of vouchers are used for this purpose.
 Cash payment vouchers for cash transactions recording.

 Purchase vouchers
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 Bank payment vouchers

 Journal vouchers for general expenses.
49 | P a g e
Hierarchy of Accounts Depart
DMD
Manager Finance
Accounts Finance
Assistant Manager
Accounts
Senior Manager
Accounts
Accounts Officer (Book Sales Accounts Officer Accounts Officer Costing Officer
Keeping & Accounts) (Sales Quantity AD) Purchase
Accountants Accountants Accountant Assistant Accountant

(2) (2)
Accountant Assistant
Accountant (5)
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PART SEVEN:
TRAINING PROGRAMME
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20) TRAINING PROGRAMME
It was a great honor working at PEL and learning their policies and procedures. I
have learned a lot of new things under the supervision of Miss Kiran Rafiq, Sir
Binyamin Khan, and Sir Muhammad Ali in Sales department (Central Desk). Every
day they use to give a set of tasks which needs to be done on oracle and excel.
They helped me in every difficulty and solved my queries helpfully.
20.1 Roles & Responsibilities of marketing department:
This department has some key roles and responsibilities including:
 Market Research
 Competitor analysis
20.2 Roles & Responsibilities of Sales department:
 Sales generation
 Taking order and informing credit control
 Head office is informed by Area credit control
 Financial planning and discussion
 Authority given by finance dept to settle terms & conditions with dealers
21) Week 1:
In First week of internship, we had an orientation which was attended by all the
interns in which the history of PEL was shared and past experience of different
interns were shared by the management After that the interns were allotted specific
departments and their supervisors.
I did my internship in the sub department of Sales & Marketing Ad which was under
the supervisor of Ma’am Kiran Rafiq.
I got to know about sales hierarchy as well as managerial levels. And the price
comparison of different products and learn about the discount schemes
Work on excel learn new formulas
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Had Marketing session about Airlift.
22) Week 2nd:

Learn about the PEL dost App, PEL’s division, PEL names history, Excel, Oracle software,
Session about marketing pillar
23) Week 3rd:

Excel work practice, Session about Communicating and dealing with customers, Marketing
session about digital marketing, compiled all data of different branches of PEL on excel,
check the previous order, Marketing sessions about how to target audience, how to run ads
on social media, strategies of google ads and YouTube bumper ads.
24) 4th Week:

Marketing session about social media calendar, excel sessions, Lecture on how to write
professional emails
25) Week 5th:

Our supervisor told that how they maintain and make their stock reports, Session with GM
about marketing and sales, he Explains us about the negative and positive points of PEL
marketing, Session about PEL’s warehouse management system, Price increase policies
check and match these lists with Urdu memo and English memo
26) Week 6th
Our supervisor gave us internship project to launch new product line of PEL and make
Social media marketing plan, He told us about the budget of our marketing plan, our
supervisor guides us about our plan to advertise our newly launch project on social media,
Data entering in excel, Make Presentation of our project to launch new product of PEL,
Presentations of our group
At the end it was the certificate giving ceremony.
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PART EIGHT:
CONCLUSIONS AND
RECOMMENDATIONS
54 | P a g e
27) Problems:
 Main problem I have found in this company is that it has the communication
barriers among the departments. If PEL is a team; departments are its players,
they need to work as one unit rather than seem working in their own capacity.
 Age difference:
 Lack of advertisement: PEL does not focus on advertising while its competitors
are focusing on this part.
 Lack of co-ordination: There is lack of co-ordination between the departments.
Every department has concern with its own matters not with the whole company.
 Lack of Product Range: Competitors are offering the products at a wide range in
term of different sizes and colors while PEL has limited offerings in terms of
different sizes and colors.
 Lack of well qualified staff in finance department. In some sections highly
qualified person is a subordinate of less qualified person.
 Dressing of officers even at executive level is casual.
 Too much favoritism and nepotism in PEL.
 There is no rotation of job work so one person is limited to his work
28) Recommendations:
 Co-ordination should be developed between departments to departments. This
can be done through setting goals and objectives of the whole company not only
for their different departments.
 As I found brand name is very important factor in consumer buying behavior, thus
it is advised that PEL should work on the brand image. Although PEL has a
strong brand name, but it has to create much stronger one, mainly through
advertising, to compete with Dawlance, Waves, and other international brands.
 The company should add more features to their products. People are attracted
towards a product with unique features and something that would make the
customers feel that they have got their money’s worth.
 The company should take measures to improve the quality of their products by
improving the process. Thus, the company is advised to take steps towards
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improving the quality of its products, otherwise it will lose a lot of potential
customers to their competitors.
 To gain more competitive advantage over their competitors, PEL has to work on
their distribution network.
 PEL more focus should be on electronic media to get competitive advantage over
the competitors. They have to increase their advertising expenditures.
 The company must give more incentives to the dealers so that they remain loyal
to the company and promote the products.
 The company should change the advertising theme and slogan to attract and for
the attention of customers. They should show some creativity in all promotional
activities. So PEL should come with some catchy Slogan.
 PEL should define the company’s mission and vision statement that can be more
helpful for them in future. Every organization however it is small or large has clear
direction where they want to go. Without direction or knowing the purpose of their
existence how an organization can make progress.
 They should advertise throughout the year so people should remember them and
will be more brand loyal and new customers will be attracted. They should use all
the medium of advertising to be more successful in attracting customers.
 PEL must introduce a true decentralize setup in the organization, giving everyone
some grounds for decision making, increase employee’s involvement in day-to-
day planning and retain back the morale plus satisfaction of the employees.
 PEL should also adopt any other methodology for projecting upcoming time
period sales which should include seasonal factors consideration in order to get
accurate future estimates rather than using that silly old average methodology.
 PEL should open its internship programs on frequent basis so more and more
students can get the chance to work as an internee in such a huge institute and
get their relevant work experience. They can personally go to
colleges/universities or give an ad in newspaper.
 In future, the managers of PEL should assign duties on daily basis.
 The work given to the internees should not be general, rather it should be
according to their specialized field (i.e marketing, finance, HR) so after the
completion of their internship program they have practical knowledge of that
specific field.
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 Introduction of seasonal schemes can help to boost sales.

 The product line of PEL is not good as compared to others like Haier, Waves,
Super Asia, so it’s good for the company for more success if they work on it.
 PEL should at least ensure same level of growth and packages among
employees working at each level like its competitors are offering to its employees
in order to retain the old employees as well as to attract new talent.
 PEL should also tighten up its monitoring and inspection Networks in order to
minimize the miss-utilization of the resources by the employees and verify the
data accuracy gathered by them.
 To make their products technically round they need more technology
advancement especially after failure of their T.V. in market. More innovative &
new technology is needed
28.1 Conclusion:
Concluding, I found that PEL has to exert more effort on advertising. Today proper
marketing is necessary for the success of a particular brand. PEL is not targeting
through advertising, by coordinating their marketing efforts, take advantage of
synergy among various communication tools, and develop more efficient and
effective marketing communication programs. Even a new technologies and formats
create new ways for marketers to reach consumers, they are affecting the more
traditional media Television, Radio, Magazines and Newspapers are becoming more
fragmented and reading smaller and more selective audience. PEL is doing some
advertising efforts but problem is that there is no creativity in ads. No doubt PEL is
making excellent products, but unfortunately PEL is not realizing creative advertising
is also important part of their Marketing success. Other thing that I concluded PEL
should increase its product range to gain a sustainable growth.
28.2 REFERENCES:
Pak Elektron Limited. (2020). Annual Report. Lahore.
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PEL Final Internship Report

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PEL INTERNSHIP REPORT

PAK ELEKTRON LTD. | 14km, Ferozepur Rd, Lahore 54000

PART SIX: ACCOUNTING AND FINANCE SYSTEM 48

1) Introduction of the Organization

The company comprises two divisions:

1.1 APPLIANCES DIVISION

1.2 POWER DIVISION

2.2 Air Conditioner:

2.3 Deep Freezer:

PEL Deep Freezers were introduced in 1987 in technical collaboration with

2.4 Microwave Oven:

3.1 Power Transformers:

Extensive Experience and success in manufacturing distribution transformer led to

3.2 EPC Contracting:

 132 & 220 KV Grid Station for Power Utility Companies.

3.3 Energy Meter:

5) Electronic Industry in Pakistan:

5.1 Role of PEL in electronic Industry:

In refrigerator PEL is 2nd in the Market in respect of sales. While Dawlance is

The active companies in this industry are:

5.2 Nature of the Organization:

Appliances Division Power Division

6.1 Market Share – Major Competitors:

Company Market Share

Others including (Mitsubishi, SG, Super Asia etc) 3%

6.2 Lahore Factory:

Distribution Manufactruing Tarding

Grid Station Televison

7) Vision & Mission of company:

7.3 Company’s objectives:

8.1 ORGANIZATIONAL CHART

8.2 DESIGNATION IN PEL

8.3 RESPONSIBILITY OF MANAGEMENT

All decisions regarding:

 Approval of annual/ half yearly/ quarterly accounts/ dividend/ bonus etc.

 All management and operational decisions.

 Overall controlling of the operations.

 To manage all the business activities of the company.

 To manage all secretarial jobs as required by the companies ordinance.

 To manage the operational activities of the company.

 To improve the quality/standard of the products.

 To suggest the modernization/expansion plans

 To manage/improve the management information system.

 General Manager Purchase

 To manage the local purchases and imports of the company.

 General Managers/ Managers Accounts

 To manage all the matters related to taxation.

 General Manager Administration

 To manage the personal and the administration matters of the company.

8.4 Finance Department:

8.4.1 General Manager Finance:

8.4.2 Manager Finance:

8.4.3 Assistant Manager Finance:

8.4.4 Senior Finance Officer (General):

8.4.5 Finance Officer (Treasury Finances):

8.6 IMPORT SECTION DEPARTMENT:

8.6.1 Pre-shipment activities:

 Import purchase order:

After selection of most appropriate supplier, order is placed. In charge import

 Opening letter of credit:

Follow up the shipment schedule:

8.6.2 Post-shipment activities:

8.8.1 Recruitment & Job Analysis: