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This project is a collaborative effort of:

Danyal (F17-61) Auns (F17-69)


Laraib (F17-73) Nisha (F17-47)
Iqra (F17-51) Kainat (F17-72)
Maria (F17-66)
Presented to: Ms. Tehmeena Khan

University of the Punjab


Jhelum Campus
Introduction:
 History of Service group:
• Service group, formed in 1954, operates in two sectors, Services Sales Corporation and
Service Industry Limited.
• Business is divided into the segments of wholesale and retail.
• Well known for its consumer products and its contribution to the diversified industries.
• Pakistan's largest footwear manufacturer and exporter.
• This group today has sales of more than PKR 9 billion.
• Headquarters at Lahore, factories located at Lahore, Gujrat and Muridke.
• The Gujrat factory was setup in 1964 and Muridke factory commenced production in
1989.
 Introduction of Servis Shoes:
• First outlet of Servis shoes was established in Lahore in 1959.
• Network of more than 500 retail outlets and 1500 independent retailers in wholesale
networks.
• Maintaining its leadership in unmatched products for all age groups and tastes.
• The main business is to purchase the shoes from Servis industries limited and also from
leading international brands and take ownership of them.
• Own marketing network and distribution network in the country.
• Sales are carried out through wholesale and retail outlets.
• At present, our capacity is more than 40,000 pairs of shoes every day.
 Vision Statement:
Be the fastest growing company in every market we enter.

 Mission Statement:
Mission of Service is to satisfy its customers by providing quality and
reasonable priced footwear and other products throughout the country, and to
satisfy its employee’s through good management.
 Specific environment:
Specific environment refers to the forces and institutions outside the organizations with
which an organization interfaces in the course of conducting its business.
• Customers:
Servis shoes target men, women and kids as well. They also produce leather belts and socks
as accessories. Organization is working hard on daily basis to improve its quality of products
and services, stay close with customers.
• Suppliers:
Organizations purchase these resources from different individuals and organizations i.e.
suppliers. Servis shoes get leather and rexine from China Rexine Manufacturers and
Suppliers in China. They import glue and chemicals from England.
• Competitors:
Competitors of Servis are Hush Puppies, Bata and Stylo.
• Hush Puppies is targeting upper class customers and their outlets have online system to
place order to factory, which Servis outlets do not have.
• Bata targeted is changing its strategy with respect to target market. Now Bata offers
Chinese outsourced shoes with their own Bata brand to capture the large segment of target
market of price conscious buyers and to achieve low manufacturing cost.
• Stylo’s production capacity and existing infrastructure are prime reasons for making it a
perfect entrant into the global export market. It is producing wide variety of fashion and
fancy foot wears.
All of them are giving high competition to Servis shoes.
• Pressure groups:
Pressure groups include labour union as they are able to give really tough time to the
organization through strikes for their rights. Suppliers can also be in pressure groups as per
their demands; they may cause hindrance in supplying resources to the organization. Politics
is one of the main pressure groups. The power of pressure groups change with the change in
social and political attitudes. Therefore organizations have to continuously monitor the major
shifts in society.
 PRODUCTS:
It has also established some of the most loved footwear brands including:
LIZA CHEETAH
NDURE SKOOZ
DON CARLOS TOZ
CALZA
• LIZA is a famous women’s footwear and product range comprises of slippers, sandals and
shoes.
• NDURE is a recent addition to the Servis brand portfolio. The product range comprises
casual, formal and sports’ shoes for men and women.
• DON CARLOS is the men’s style leader in the footwear industry, including casual and
dress shoes and sandals.
• CALZA is an organized family shoe brand. The unique style and comfort has made it
Pakistan’s favourite slipper.
• CHEETAH is leading brand of sports footwear in Pakistan and is the shoes of choice for
professional athletes.
• SKOOZ refers to school shoes which follow uniform requirements and kids can pick
according to their own choice.
• TOZ brings a colourful world, full of fun and adventure for kids, which never stops.
Functions of Management
 Planning:
• Planning provide direction
• Planning reduce uncertainty
• Planning minimize waste & redundancy
Planning and distribution department is the most
important department of Servis. These department
serves as a link between the factories and market.
Officers have to be well aware of this diverse
geographical layout especially the type of articles of
footwear preferred by the people of each region.
 Goals:
The ultimate goal of the Servis Shoes is to deliver the shoes to the general consumers to their
maximum satisfaction.
• Short term goals:
• Breaking into a new industry.
• Learning a new set of skills.
• Gaining experience in leadership and team-building.
• Becoming an authority in industry.
• Improved interaction with current members.
• Greater visibility to media.
• Better communication.
• Motivation of group actions
• Long term goals:
• To provide good job opportunities.
• To provide better quality products to consumers with low price.
• To make optimum use of the physical and financial resources to increase productivity.
• Never be satisfies with the level of quality, always strive for continuous improvement
using latest techniques.
• Our products should meet the customer expectations.
• We should respect our competitors.
• Teamwork and cooperation.
• The aim is to become the quality leader.
 Strategies:
 Set the right objectives towards which the organization should be moving.
 Deliver the products to the customers on time in all circumstances.
 To provide the best quality products available in its class.
 Using best Rexene and leather for shoes.
 Compete through innovation.
 Top management strategies:
 Marketing and communication efforts.
 Must be best career destination for talented, motivated and ambitious professionals.
 Fully integrated systems (Servis, suppliers, customers) ensure efficient business processes.
 Non-strategic activities and products are outsourced or discontinued
 Diversification to reduce risk.
Organizing:
• involves developing an organizational structure
• allocating human resources for fulfilment of objectives
The structure of Service group and Servis shoes is represented by an
organization charts, which provides a graphic representation of the
chain of command within an organization. Organizing at the level of
the organization involves deciding how best to departmentalize, or
cluster, jobs into departments to coordinate effort effectively.
Four steps of organizing includes:
• Identification of activities
• Departmentally organizing the activities
• Classifying the authority
• Co-ordination between authority and responsibility
 Top authority:
• CHAIRMAN:
Mr Ahmad Javed
• CEO:
Mr Omar Saeed
• BOARD OF DIRECTORS:
Mr Arif Saeed
Mr Omar Saeed
Mr Ahmad Javed
Mr M. Ijaz Butt
Mr Hassan Javed
Mr Ahmad Shahid Husain
Mr Hamid Husain
• GROUP EXECUTIVE COMMITTEE:
Mr Arif Saeed
Mr Omar Saeed
Mr Hassan Javed
• MANAGEMENT TEAM:
Mr Ghulam Muhammad (GM SIL Gujrat factory)
Mr Adnan Wasal (GM SIL Muridke factory)
Mr Jawwad Faisal (Chief Commercial Officer)
Mr Sohail Chaudhry (GM Domestic Sales)
Mr Muhammad Usman Amjad (Chief Financial Officer)
Mr Hassan Ehsan (Head of Exports)
Mr Haider Chaudhry (Head of Human Resource)
• AUDITORS:
Mr Rehman Sarfraz
Mr Rahim Iqbal
Chartered Accountants
• (Footwear division management team):
Mr Ghulam Mohammad (GM Gujrat Plant)
Mr Qadeer Vaseer (GM Muridke Plant)
Mr Kashif Khawaja (country Manager Footwear)
Mr Muhammad Asif Husain (GM Domestic Sale)
Mr Hassan Ehsan (Business Head Muridke Plant)
• (Tyre tube division management team):
Mr Muhammad Ejaz (country manager sales and marketing)
Mr Ghulam Ahmed Cheema (GM Gujrat plant)
Mr Ghazanfar Ali (Chief Technical manager)
 Organogram (Service group):

Group executive committee


(GEC)

Corporate
Corporate Corporate Corporate Human
Procurement
Finance Sales marketing resource

Tyre and Tube Footwear unit Mall Footwear Unit Footwear unit
Unit Gujrat Load Lahore Domestic Gujrat export Muridke
 Functional departmentalization:

Footwear Unit Mall Road Lahore

Sales and
Finance Engineering
marketing

Production Human
Accounting
And Resource
Planning
 Span of control:
Jhelum District manager
Hassan Raza

Machine TEHSIL ROAD 2 TEHSIL ROAD 3


Civil lines
Mohalla Number. 1

BRANCH BRANCH BRANCH BRANCH


MANAGER (AZHAR MANAGER MANAGER MANAGER
AHMED) (RASHID JAVED) (FAISAL) (SHERAZ ZAHEER)

ASSISTANT ASSISTANT ASSISTANT ASSISTANT


MANAGER MANAGER (ZOHAIB MANAGER MANAGER
(MUZAMMIL) HASSAN) (TAUQEER) (RIZWAN)

SALESMEN SALESMEN SALESMEN SALESMEN


 Job specialization:
Servis is the name of a collection of individuals who believe in excellence. It specializes in
hiring people who have the drive to succeed and the will to implement the discipline
required to succeed.
It is the process of focusing one's occupational concentration on a specific area of
expertise. An increase in job specialization among employees can make them less flexible
since it tends to reduce their ability to perform other types of work within the business that
fall outside their particular specialty. Servis usually specializes in foot wears and tyres
tubes. All employees working in Service industries limited are trained and professional.
 Leading:
• Managers as leader
• Motivation
Servis leads it employees and motivate them so
they can achieve success and leadership over shoe
industry.
Leading involves the social and informal sources of
influence that you use to inspire action taken by
others. Studies of motivation provide important
information through which workers can be
energized to put forth productive effort and how
managers can effectively and persuasively
communicate.
• Employee compensation & benefit:
Employees are provided provident funds, cars, health insurance, life insurance, bonuses
and are provided leaves as well. Welfare schemes are also working.
• Promotion policies:
Servis also motivates its employees by promoting them to higher level jobs after specific
period.
• Bonuses:
Servis give bonuses depending on yearly profits of the company. Usually they give the
bonuses once a year according to the wages and the salaries of the workers.
• Linkage with banking system:
The company has to import the raw material from foreign countries. For this purpose they
need the letters of credit from different banks. So, they have strong linkage with banks
• Economic environment:
The economic environment of Pakistan is not good. Purchasing power is going low & low
day by day so Service Industries are trying best to capture maximum share in the market by
providing comparatively cheap & by giving a lot of attentions on the advertisement.
• Employee training:
Training is conducted, throughout the year. Employees are provided training i.e. On the Job
Training, and External Trainings through training institutes, Training Abroad.
 Controlling:
It check mistakes and tells us how new challenges can be
met or faced. Servis’s controlling department ensures that
performance does not deviate from standards.
Controlling consists of three steps:
• Establishing performance standards
• Comparing actual performance against standards
• Taking corrective action when necessary
It most importantly includes:
 Who reports to whom:
• Manager reporting to:
Managing Director/ Chief Executive
• Manager (Accounts/finance) reporting to:
Chief Executive
• Reporting Staff:
Deputy Manager Account
Assistant Manager Finance
 Major function:
• Handle accounts, finance and tax matters
• Dealing with banks and leasing companies
• Approval of all vouchers
 Quality improvement circle:
The basic goal of the company is to provide a quality product to their customers. So
they check the quality at every process in quality control laboratory.
• Quality in product:
Product quality and reliability are the hallmarks of all Service products. Understanding
specific customer needs and satisfying these with good value products, the company has
earned the reputation of professional enterprises engaged in the manufacturing of
quality products.
• Quality in people:
From the chief executive to the shop floor, all employees working in Service Industries
are dedicated professionals, experts in their field and fully committed to the goals of
quality and service of the company. A number of engineers and sale executives have
experience in foreign markets as well.
• Quality in Service and commitment to the customers:
Servis pays particular attention to the quality of after sales support to dealers and service
to their customers. A comprehensive network, of over 500 authorized retail price shops,
dealers, cut price shops, agencies etc., is fully geared to meet all customers’ needs.
• Quality policy:
• To meet or exceed customers’ requirements regarding quality of the product
consistently.
• Deliver the best quality products on time in all situations.
• To use new technological advances and advance process controls to remain at the
forefront of quality.
• To ensure complete familiarity of each employee of the above policy and a categorical
recognition of their role in achieving these objectives
 PEST Analysis of Servis shoes:
Political factors:
• Energy problems
• High taxations
• Trading policies
• Government policy
Economic factors:
• Prices
• Inflation and interest rates
• Skill level of workplace
• Staff cost is very heavy
Social factors:
• Changing life style
• Demographics
• Buying trend of people
• Entrepreneurial spirit in people

Technological factors:
• Research and innovation
• Changing technology
• Competitor’s technology development
• Online selling facility
 SWOT Analysis of Servis shoes:
Strengths:
• A strong brand name
• Good relations with customers
• Believes on customer satisfaction and comfort
Weaknesses:
• Lack of new products
• Centralize decision making
• Distribution network as compared to Bata is little bit weak
Opportunities:
• Provide online shopping facilities
• Replacement of infrastructure
• Improved shopping experience at retail outlets
Threats:
• Rivals like Bata, Stylo, Starlet, Hush puppies etc.
• Inflation is also fearful threat
• Political risk factors
Recommendations:
• Servis should focus more on Public relations.
• Organization should enhance its promotional activities.
• Servis has an opportunity to come in fashion shoes industry.
• It should also produce medicated shoes for patients having orthopedic disorders.
• Servis should focus on feedbacks of customers to sort out problems.
• Company must pay a continuous attention to the quality of the products so that
competitors may not surpass it.
Conclusion:
Servis shoes need to introduce new products including fashionable and trendy foot wears to
compete in shoe industry. Because of lack of marketing and print media, Servis has created
communication gap with customers and it is difficult to attract new customers when there
are so many alternatives. There are a lot of opportunities which can be utilized to increase
the sales, revenue and market shares.
Servis must focus on causes which may cause decline in market share of Servis. If these are
catered well and effective planning and execution is done, Servis can generate more market
share through shoes.

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