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Case Study Solution

PAKISTAN FOODS AND BEVERAGE


COMPANY (PFBC)

South Asian Journal of Business


and Management Cases

Facts of case
There has always been a knowing-doing gap, that is, the
boss would know what
The problem is but then will adopt totally a different
approach in solving (doing) the problem
This has caused a serious discourse amongst the various

Problem
Under Investigation
managers
at PFBC
The perils of managing growth

Are catching up the organization with extremely high


employees separation rate, lower productivity, endless
complaints and grievances,
Lack of HR management systems and a one man
show approach adopted by its owners.

Objectives of case
The CEO now wants to strategically realign and
incorporate the organization-wide cultural change
According to his Vision 2020 and revamp things to
make it great without leaving good.

Company Background and


History

Ali Akbar Khan, started with his personal savings of Rs. 2


millions,
With a small shop at Ichchra, Lahore laying the
foundations of Pakistan Foods and Beverages Company in
1987.

Vision: Provide quality food at affordable prices, with

integrity, sincerity
And ethical standards imbued in every aspect of his


Company
Continue..

Background

and

History

In 1999 it introduced Methai (local sweet) with fresh and


pure ingredients and innovative tastes
In its 25 years of operations so far, PFBC has diversified
into a versatile food
And beverage company and became a household name and
leading brand in Punjab
From 2002 till 2010,PFBC became one of the fastest
growing foods and confectionery stores in Pakistan
By 2010 it was operating 97 outlets in Lahore, 2 in
Shekhupura, 10 in Faisalabad,
With a total of 5 operational processing units at various
industrial zones of Lahore


Company
Continue..

Background

and

History

This growth however was jolted due to a family rift


amongst the sons of Ali Akbar
Not to create a major family setback Ali Akbar Khan
offered Kamran to start
A separate catering business under the banner of PFBC
group of companies
PFBC from 2010 till 2013: The Years of Umair Akbar Khan
The new CEO company made tremendous growth and
expansion during this period
He expects a lot and is considered as a CEO with a lot of

Corporate Culture at PFBC


Farhan (The Senior HR Manager) and Umair (The CEO)
dialogue

trategic and Financial Objectives of PFBC


Although PFBC is a Seth oriented organization, positive
signs of managing it strategically are present
Achieving optimum level of efficiencies in terms of

production, product quality,


Customer services and human resource management
Minimizing costs of supply chain management and
materials management
Excellence in implementation accounting procedures and

The HR
The HR department comprised of 25 people, headed by
Department
Group Head HR
Reporting to the group head was Manager HR
All recruiting and selection process is through HR

Employees at PFBC
Education, qualification or experience would be a

distinct second while considering the position to be filled


Theft, wastages, pilferages and non-balancing of the
cash tills with daily inventories was common
Customer complaints regarding the rude attitude of OTC

staff were frequent

SWOT Analysis
Strengths:
Product diversity
Extensive distribution channel
Corporate Social Responsibility (CSR) projects
Successful marketing and advertising campaigns
Complementary product sales
Cost advantage
Low pricing

Weakness:
High employee turn over
Low pricing
Questionable practices (labeling issues)

Much weaker brand awareness and market share in the world

beverage market
No online presence

SWOT Analysis Continue.


Opportunities:
Growing consumption in emerging markets

Increasing demand for healthy food and beverages

Further expansion through diversified products


Bottled water consumption growth
Savory snacks consumption growth
International expansion

Threats:
o Changes in consumer tastes
o Water scarcity
o Legal requirements to disclose negative information on product
labels
o Increased competition
o Volatile currencies
o Substitute products

PEST Analysis
Political Factors:
Government type and stability
Tax policy
Health and safety rules and regulations
Regulation and de-regulation trend
Level of corruption

Economic Factors :
Stage of business cycle
Impact of globalization
Fluctuations on the prices of raw materials
Likely changes in economic environment

Social Factors:

Increasing consciousness about green packaging amongst consumers


Population growth rate, health, education and social mobility
Life style choices and attitude toward socio cultural changes

PEST Analysis Continue..


Technological Factors:
Innovations in product research and development practices
Impact emerging technologies
Impact of technology transfer
Use of technology in production process

Competitor
Sales analysis
Analysis
Companies

2011

2012

2013

Total

Fazal Sweets

2268

2412

2520

7200

Nirala
PFBC

720
1800

1080
2520

1260
3420

3060
7740

Total

4788

6012

7200

Market share analysis


Companies
Fazal Sweets
Nirala
PFBC
Total

2011-2012
1.26
0.51
0.79
2.56/3=0.85

2012-2013
0.97
0.57
1.02
2.56/3=0.85

Evaluation:
Compare objectives with current standing of the company
Direction relating to case objective has been given by CEO but the
case is silent about current standing of company, its future direction
for study at PFBC
As concerned with current standing of the company, it sill has higher
turn over rate than its competitors

Conclusion:

To check that to what extent the culture of the organization has


been changed
Further future study is needed at PFBC , for this we may have to
wait until 2020 as this plan was up to 2020
As concern with company current performance, the company is
good in the shape of sales and market share
So we can conclude that they have been fail to achieve their
objective in short run with respect to culture change

Employee
Reviews
Excellent Work Environment

by Manager Sales & Co-

ordination(Current Employee),Lahore, PPBJanuary 9, 2016


The Largest Food Chain in Pakistan by Accounts Executive(Former
Employee),LahoreAugust 15, 2015
A very big and growing firm by Accountant(Former
Employee),LahoreApril 19, 2015
Overall Experience in PFBC is good but no benefits for the
employees, no job securities by Assistant manager accounts(Former
Employee),Lahore PakistanApril 6, 2015
Gaining Culture by Supply Chain Officer(Current Employee),Lahore,
PPBSeptember 4, 2014
Coordination with all stake holders by Assistant Supply Chain
Manager(Current Employee),Lahore, PakistanMarch 6, 2014

Any Question