CHAPTER 6: RECOMMENDATIONS

6.1 Pakistan Cables Ltd. (2016-2021)

 Cost Effective Strategy and Improving R&D

Cost of sales is major and the largest expense of Pakistan Cables. It averages 96% impact on the

net sales as compared to other expenses such as marketing, selling, distribution and administrative

costs. Pakistan Cables is largest importer of the Copper in Pakistan and strong linkages with

highly recognized raw materials suppliers like Borealis suggests that Pakistan Cables doesn’t

compromise on its quality. But on other hand we observe impact of costs related to production and

procurement are really high. After nearly 70 years of working experience now Pakistan Cables

must become more self-dependent and it must reduce its cost of sales by acquiring professional

labor and manufacturing skills of producing its own Copper and most of raw materials essentially

required in production phase which can only be done if they improve their Research and

Development department. At Pakistan Cables emphasis should be made on internal efficiency and

cost effective management especially in the present circumstances of financial uncertainty and

global market inflation.

 Increasing Collaborative Partnerships

Pakistan Cables already collaborates with many highly recognized firms such as Shell, Honda,

Engro, Samsung, Nestle, Coca-Cola, PEPSICO, GSK, SIEMENS, Schneider Electric and many

more. General Cables had 24.6% shares in Pakistan Cables from 2010-2017 which played vital role

in enhancing its reputation and financial aspects of Pakistan Cables. Through effective strategy of

increasing collaborative partnerships with other renowned firms Pakistan Cables can increase its net

sales, it can become globally recognized and a highly reputable firm.

 Increasing Exports and Effective Marketing Strategy

Pakistan Cables must not only further improve its partnerships but its marketing and sales strategy

so that it can enhance its customer base both within Pakistan and abroad so that it can gain fruits of

high profits via remittances.

 Effective Pricing Strategy and High Quality Standards

Although Pakistan Cables is only cable manufacturing company firm in Pakistan that is listed in

stock exchange. It competitors which are new entrant in market such as Riyadh Cables Group,

Kabelindo Murni, Future Fibers and Cofle are relatively new entrants in market. Thus, in order

retain its customer base and to meet customers’ expectations they must adapt strategy of using top

quality materials and develope effective pricing strategy considering the pockets of masses.
6.2 WAVES Corporation Ltd. (2016-2021)

 Regarding Operational excellences which are risks associated with internal factors, administrative and

operational procedures like employee turnover, supply chain disruption, IT system shutdowns or control

failures.

o Company should initiate vendor rationalization, emphasis on in-house manufacturing and

scorecard evaluation of vendors could be put in place.

o Company should place a quality and process improvement program across the Company,

including strategic vendors, during the year with progress being tracked at regular Management

reviews.

 Regarding Branding/Innovation Risk which applies to innovative areas of your business such as

product research and to cope up with latest market trends and product innovation.

o Company should strengthen its consumer insight process and fill up competency gaps in the

concerned function.

o Company’s research and development department should be more strengthened and should be

continuously looking into and implementing product innovation strategies.

 Credit risk represents the risk of a loss if the counterparties fail to perform as contracted.

o The company can apply individual credit limits and by securing the majority of trade debts

against bank guarantees. The credit risk arising on account of acceptance of these bank

guarantees can be managed by ensuring that the bank guarantees are issued by banks of

reasonably high credit ratings as approved by the Board of Directors.

 Price Risk is when there are new entrants in the market; there is a likelihood of price competition which

might squeeze margins.

o The Company should be constantly sourcing competitive suppliers, improving its technology,

efficiency and productivity.