Tayyaba Report

Internship Report of Leather
Coordinators
INTERNSHIP REPORT
ON
LEATHER COORDINATORS
Tayyaba Ishfaq
ROLL # BBA-12-26
SESSION (2012-2016)
BBA_ 7TH SEMESTER
DEPARTMENT OF BUSINESS
ADMINSTRATION
BAHAUDDIN ZAKARYA UNIVERSITY
SUB CAMPUS SAHIWAL
LEAHTER COORDINATORS (PVT) LTD.
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Coordinators
ACKNOWLEDGMENT
First of all I am thankful to Allah Almighty who gave me the strength and ability to write this
report and complete it in time without any hurdles. I am thankful to my parents. Their affection
and support allows me to accomplish my task successfully. I would also like to thank my advisor
Sir munir who gave me the confidence, and guided me at every step during the
accomplishment of my report. It was a great experience to write this report due to the fact that it
was an explanation of what I experienced and learnt during my internship. It gave me a better
idea of how things work practically and how important it is to deal with all aspects of leather
garment businesses. This report gave me the opportunity to put into practice of what I had
learnt during my internship.
Executive Summary:
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Coordinators
Leather coordinator is private limited company that deals purely in leather garments. It
manufactures and exports quality leather garments in Pakistan. It is doing business in Pakistan
from about 42 years and was also awarded as the best leather exporter of the year in 2008 by
the government of Pakistan. The Leather coordinator is manufacturing all kinds leather
garments, but it majorly focuses, and is specialized in leather jackets production and the target
market of Leather Coordinator are foreign countries like Germany, France, Holland, England
and some other countries in UK.
This report is the brief and explanatory analysis of leather coordinator. The objective is
to share my practical knowledge that I gained during my work at Leather Coordinator. The
research is based on my findings that I gathered during my work. Primary data was collected
through interviews, from the employees of different ranks, survey and observation at sites. For
secondary data collection I read newspapers, articles, text books and used internet. During my
internship tenure I worked in different departments. Different tasks and duties that were
assigned to me have been mentioned in this report.
At start, the introduction and history of leather industry is given in order to understand
its importance in Pakistan. The first chapter is about the introduction and background of LC,
objectives, organizational structure and the product portfolio is also discussed in it. In second
chapter, the operational activities, production plan of LC, Competitive advantage and market
segmentation are discussed. The third chapter contains the findings and the analysis.
SWOT analysis of the organization is also done. SWOT analysis plays a vital role and
acts as a mirror for the management to know about their internal strengths and weaknesses and
external opportunities and threats. Management can take corrective actions and can avail
different opportunities by using their strengths. The focus of the last and fourth chapter is on
recommendations related to management and administration to let LC capitalize the
opportunities and overcome the weaknesses.
Table of Contents
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Coordinators
Introduction to the sector----------------------------------------------------------- 05
History of leather industry in Pakistan-------------------------------------------06
Background of leather coordinator-----------------------------------------------06
Location of Leather tanneries in Pakistan---------------------------------------07
Company Vision and mission-------------------------------------------------------07

Organization structure--------------------------------------------------------------08
Market segmentation and market strategies-----------------------------------09
PESTL Analysis-----------------------------------------------------------------------12
SWOT Analysis-----------------------------------------------------------------------14
Recommendations---------------------------------------------------------------------16
References------------------------------------------------------------------------------17
1. Introduction:
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Coordinators
1.1 Introduction to the sector
Leather industry is the largest industry in Pakistan that is doing the second largest
export after textile industry. Leather coordinator (pvt.) was established in1990as a private limited
company at Sahiwal. Initially the main objective of the organization was manufacturing and
export leather goods. Sheik Muhammad Younis is the pioneer of leather industry at Sahiwal
which is exporting the leather products. Muhammad Younis started his business with the
tannery process. According to estimation this industry is contributing about $650 million in a
year, and it has the potential to go farther than this. Apart from the foreign exchange earning it is
providing employment to a larger part of the economy. Leather technologists can claim to be a
member of an ancient profession because leather was one of the very first manufactured
products. At first, leather garments were not considered as valued products, but now leather and
leather products are included in the luxurious products. It has become the necessity of the world
and especially for the Western culture and countries. It is the only product which is used
completely, and not even a single piece of smallest cutting remains useless. The raw material
for leather and leather made products are the skins and hides of animals such as sheep, goat,
buffalo and cow, which are available in abundance in Pakistan. These hides are available at the
registered slaughter houses in Karachi, Kasur and Multan where the quality and other
precautionary measures for both animals and the product are kept under consideration.
Pakistan was the leader in producing quality finished leather from 2001 till 2006. After this the
downfall started on this industry. That downfall was from 2006 till 2009. The main reasons
behind this downfall were poor economic conditions and negligence of producers. Low and
medium graded leather garments were produced in that time period. The current structure of
this industry is well established and this structure is divided in to various segments such as
tanning, finished leather, foot wear, leather goods, leather garments and component parts of
leather garments. U.S, France, Italy, Germany, Brazil, Japan, Holland and South Africa are the
major buyers of Pakistani leather. Pakistan is highly competing with China and India for exports
because these two countries are the major competitors of Pakistan. Pakistani leather industry is
well known in international markets. This industry contributes about 8% in Pakistani exports and
it has the share of 4% in GDP. This industry is making progress by leaps and bound. Pakistani
government is providing support to improve this sector.
1.2 History of Leather Industry in Pakistan
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Coordinators
Leather has been export oriented business for many decades. Pakistan had
been exporting raw leather 1970s, in 1980s; Pakistan started exporting finished
leather, leather garments and leather products. The history of leather is as old as
the current age of Pakistan. In the beginning vegetable tanned skins were produced,
but due to the technological change chrome tanning is used now. At the time of
independence of Pakistan, only a small scale production was done by few tanneries,
but after the independence of Pakistan there was seen a rapid growth in this sector.
In 1950s, some tanneries were established in Lahore and Karachi, and those setups
were very well. In 1960s, and 1990s, some more units were installed at Sialkot,
Multan, Sahiwal, Gujranwala and Hyderabad. Early setups produced only picked and
vegetable tanned hides and skins, but now Pakistans tanneries are not only
producing crust and wet blue, but are also producing and exporting the finished
leather. Pakistan started from exporting raw leather and now is exporting finished
leather, leather goods and leather products. All this rapid growth happened due to
the favorable conditions of Pakistans environment, cheap labor and raw material
and demand of leather products in international markets.
1.3 Background of Leather Coordinator
Leather Coordinator started its business about 45 years ago. The owners of Leather
Coordinator used to work in Aziz Leather Craft (ALC), near Harrapa which was the second
largest leather factory of Asia at that time. Leather coordinator started its business from a very
small unit which had 4 6 machines only which were used to produce leather gloves only. They
earned profit and started the production of leather about 42 years ago in their production unit
which they named as Yousaf Tanneries. Yousaf Tannery is the registered tannery under
Pakistan Tanners Association (PTA). It was awarded the best leather manufacturer in Pakistan
in 2008 by PTA. They made progress and expand their business by making leather garments
and named this company Leather Coordinators. This company is exporting leather finished
goods and earning substantial foreign exchange. Their hides and skin dealing unit is in Jahan
Khan. Wet blue is manufactured there and is brought for further process in Yousaf Tanneries.
Leather is made here and then is brought to Leather Coordinator which processes it for the
leather garments. The finished product of Yousaf Tanneries is the raw material for Leather
Coordinator. Yousaf Tanneries and LC are situated at Tufail Shaheed road in PSO Storage and
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Coordinators
dealing in Sahiwal. This business is owned by Sheikh Mazhar Waseem, Sheikh Azmat Saleem,
Sheikh Basharat Nadeem and Sheikh Basharat Naeem. It is a family owned business.
1.4 Location of Leather Tanneries in Pakistan:

There are more than 2600 registered and unregistered tanneries in Pakistan under
Pakistan Tanners Association PTA. Along with the passage of time the number of registered
tanneries has increased from 530 to 600 in 2003, and up to 745 at present. These tanneries are
located in all Pakistan in Karachi, Hyderabad, Faisalabad, Multan, Lahore, Kasur, Sialkot,
Peshawar, Gujranwala, Sheikhupura and Sahiwal. PTA facilitates these tanneries in to the local
and international markets. The increase in number of these tanneries shows the growth of
leather industry in Pakistan.
2. Companys Mission:
To be a leader in producing matchless and supreme quality leathers with promise to ensure
quality for excellent output and delivery of products in competitive prices.
3. Companys Vision:
Customer requirements are much important for satisfaction of customers.
To encourage the human growth to the full potential.
To achieve the international standards through quality and higher efficiency.
To assure maximum satisfaction to the customers and bringing timely services to them.
To recognize the customer's need and customers right to quality and deal accordingly.
3.1 Objectives of the Company:
Earn maximum earnings in order to benefit the employees and to do maximum business,
never to compromise on quality.

The clients and to live up to the demands of growing organization, employees.
Maximum satisfaction to the clients to assure.
To keep integrity & fair play.
Pay all the levied revenue enhancements and to function as a framework unit, follow all
the Laws applicable, report earnings.

Outside and to keep an open info system & understanding within the company.
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Outside and to keep an open info system & understanding within the company.
4. Organization Structure
General
Manager
5. Market Segmentation
and
Strategies:
Into two main segments
Into
market is separated as.
National
International
following
Marketing
Human Recourse
Department
both
Marketing
Department
are
Production
Department
Individual
Business
Business
market segmentation
market segmentation
further divided as.
customers
customers
Administration Department
and
Individual
customers
Who buy the Small
personal
use
those
are
Finance
Department
others business that will sell
amount of items for their

individual consumer and
them to their customers
and cover the entire wholesaler, retail merchants are the business customers.
5.1 Product lines
As the part of its long term plan the initial product line was that.
1. Mans jackets
2. Womens jackets
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Coordinators
3.
4.
5.
6.
7.
8.
Children jackets
Leather Trousers
Men's leather coats
Women's leather coats
Leather Skirts
Motorbike Jackets
5.2Marketing Plan:
5.2.1 Pricing
There are two kinds of customers that Leather Coordinator have individual customer
and business customer thats why there are different pricing strategy for both the customers.
Customize merchandises for individual consumer leather coordinator is offering. Thats why they
are charging premium price from the individual customer but in the market, business partners of
Leather Coordinators are charging standard price that is existing.
Value Based Price

According to the customization in merchandises, customers can add new ascribes and
their desired contrive so leather coordinators can accuse value based price at every modify
merchandise.
Cost Based Price

For us in whom certain percent of earnings is charged at cost, it's another pricing
option. Leather coordinator is charge 20 pct of earnings at any cost.
5.1.2 Place (Distribution procedure):

Leather Coordinator is focal point on direct distribution and indirect channel from
beginning to end through any courier/logistic company to supply goods delivery at set time.
5.1.3 Promotion Strategies
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Leather Coordinator is using different tools for promotion they are doing online
marketing through internet. Through e-mail to their business customers they promote their new
product or innovation and via e-mail their customers also tell them that what is their
requirements. Another way of promoting the product is telephone through telephone they
communicate with their customers and market their products also knowing the trend of that
market from the customer and customize their product according to that foreign market.
Direct marketing:
Leather Coordinator is also involved in direct marketing one or two employees from the
company go abroad twice in a year for the purpose of marketing. At that time they meet with
their existing customers and as well as their potential customers.
6. Competitive Advantage:
The leather coordinator has several benefits to operate in Pakistan Market some of
these advantages are.
6.1 Availability of low cost skilled and technical labor

Low cost is the biggest advantage of Pakistan and the other advantage is the skilled
labor. Such as manufacturing companies like leather garments and leather footwear
which are producing leather garments and footwear are labor intensive.
Among the other key leather garments manufacturing countries Pakistan has the lowest
labor cost. In leather craft Islamic Republic of Pakistan also has the world's largest
technically trained manpower. The double advantages of low cost and technical skills
gives Pakistan separate competitive advantages of low cost and technical skills.
6.2 Large quantity of raw material:

Accessibility of back upping institutions Islamic Republic of Pakistan is the largest farm
animal holding country with 21 percent of the large animals and 11 percent of small
animals in the world.
The big population of cattle, buffaloes, goat and sheep that the country possesses
ensure that Pakistan has 10% of the worlds raw material base.
Much sought after and in addition, some of the leather available in Pakistan is insurance
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Coordinators
premium quality thats why Pakistan is also the big exporter of raw leather.
7. PESTEL Analysis:
7.1 Political Situation
The political situation of Pakistan is not satisfactory. Due to rapid change in the
government
every government set its own trade policies. Government should apply the
sustainable policies for the benefit of the exporter as well as investors.
Stability in political environment

Government policy and law that regulate or tax business
Governments position on marketing ethics
Government policy on the economy
7.2 Economic situation

The economic condition of Pakistan also affect the foreign investor increasing inflation
rate make the cost of production high and thus reduce the profit margin of the investor high
flexibility in exchange rate also adversely affects on the international deals of organization.
Interest rate
The level of inflation
Employment level and per capital income level
Long term prospect for the economy gross
Domestic product GDP per capital
7.3 Social situation:

The change in life style of the people affects the growing demand of the unique tanning
industries private ltd. The change in lifestyle and need in different demo graphing also affect the
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demand of the customer. Due to this change in lifestyle people demand high quality products LC
private ltd. are meeting this demand by having latest machinery.
Attitude to foreign products and services.

Life style of people
7.4 Technological Factor:

Technological Advancement in all sectors of country has changed the entire
socioeconomic environment. Especially in the leather sector there is a lot of technological
development. LC private ltd. has excellent computerized machines and device and have made
extension in its present setup by installation of well advanced technology imported from china.
Improvement in technology for production of cheap products

Introduction of new way to communication with customer
Automation
Rate of technological change
Environmental and ecological aspect
Barriers to entry
7.5 Environmental Factor:

The physical environment is also a key issue for firms operation in any given national
market and consideration should be considered two how firms treat the physical environment
and the impact this has on the business, but the impact the physical environment generally has
upon a business, general term, the physical environment which LC operates within the SWL
may seen as relativity benign in comparison to other parts of the world which suffer from high
intensity natural disasters such as earthquakes, hurricanes and forest fire.
7.6 Legal Factors:

Like all business, LC must conform to the legal minimum standards which are as
enforceable jurisdiction. The case of LC operations legal element may be seen as more
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complex given that the company must comply with both UK law and EU law. Some of the key
legal regulations which affect LC in the SWL are consider below:
Maximum wage legislation

A key piece of legislation in the SWL which affects organizations such as LC with a large
number of low paid workers is that of the various minimum wages regulations.
8. SWOT Analysis:
SWOT analysis is key to measure the performance of an organization and its
environment. SWOT analysis includes the internal strengths and weaknesses and external
opportunities and threats of an organization. This is a sort of performance appraisal of the
organization. By seeing its strengths, organization tries to overcome its weaknesses, minimizes
its external threats and try to avail and hit the available opportunities. Hence, SWOT analysis
evaluates the performance and helps in taking the important decisions. The SWOT analysis of
Leather Coordinator is done in order to know its performance in current scenario.
8.1 Strengths:
Strong market image in foreign market

Company certified by ISO 9001
Labors are available low rates
No transportation cost because staff belongs to Local town
Rate of growth increase day by day and meet the demand
Advantage of self-backed tannery they are producer of their raw material
Supporting Policies of the government
Able to adopt technological change and change in trend
Leather coordinator has enough resources Ability to handle Large projects
Strong management efficient in decision making
Produce leather garments in bulk quantities achieves the economies of scale and saves
much cost.
Continuous improvement in operations
8.2 Weaknesses:
International price fluctuation

Centralized power delegation
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Lack of technological inputs

Absence in the global fashion market
Unawareness of the international standers
Huge labor force resulting huge labor cost
8.3 Opportunities:
To go up in domestic market
Growing fashion consciousness globally
Use of information technology
Use of e-commerce in direct marketing
Promotion of products in Pakistan
Capturing the customers from business expos
8.4 Threats
Hard and fast international standards

Lack of communication skills
Major component part of the company is unorganized
frequent changing currencies
Difficulty in obtaining the loans resulting in high cost of borrowing.
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9. Recommendations:
Full utilization of available resources

Remove the loose tolls and old spindle machines which are white elephant
Proper use of energy power plant to avoid power break down
Proper incentive plan for the worker &employee
Proper quality control to increase the demand
Proper control on manufacturing cost, which is too high
Proper control on financial expenses
Proactive measures for the workers and machinery should be introduced
Under the experienced parsons it is observed that in most of the departments
Quality staff is appointed ,if properly qualified staff is appointed that will give a great push
to the business
Company should prepare cash budgets to meet the requirements of creditors and to
cover the amounts from debtors and at proper time

A defined internship program should developed for the internee
Learning as an Internee:
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Internship in Leather coordinator was my first working experience in my career,
before this I never ever work in any organization as an employee or intrnee of
that organization. It was a chance for me to explore my abilities and to implement
the course, which I studied specially in BBA. I, did my internship in different
departments Leather coordinator for more than six weeks and in that duration, I
got the opportunity to identify that who the HRM, Marketing and production
department works. The reason for selecting Leather coordinator for internship is
that it is the sector, which provides multi-services and products to all around the
globe at one time & secondly, Pakistan is the big exporter of leather garments all
around the world and generating the revenue from the export of leather so it
helps me to know about how leather industry of Pakistan worked. My internship
experience gave me a good learning experience because I had the freedom to
work with such cooperative and experience staff.
At the time of joining as an Internee in Leather coordinator an orientation
program was arranged for us. In which I learn about all departments and history
of the Leather coordinator.
I met with General Manager of the Leather
coordinator and get information about respective departments, so that I will be

able to achieve my duties efficiently.
It was the great experience to work in different department of Leather coordinator
as an internee. I worked two weeks in each department and I gained lot of
information from each department and now I am capable to know that how HR,
Marketing and Production department actually works.
Duties and Responsibilities at Leather Coordinator:
In marketing department I checked the e-mails from the customers from
outside the country.
I also reply to the foreign customer via e-mail.
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Coordinators
I individually interviewed about 50 people in different markets; offices and
even house hold and ask them different questions about the leather
garments in Pakistan.
I individually verify the invoices of different customers in which the whole
information of payments were visibly mentioned.
In HRM department I checked the attendance register daily and update
the attendance of employees.
I also checked that what thing should required and then make the list of
that things which are required e.g. papers and ink for the printers etc.
In Production department I learned that how Production department works
in collaboration with other departments, i.e. cutting, planning, stitching,
purchase etc.
I also worked in SCR department this is the department of production in
this department I checked the records of the samples and some time also
record the results of the samples.
Accomplishments:
Learned how marketing department of Leather Coordinators work.
Learned the practical implication and implementation of planning and operations
department of Leather Coordinators.
Gained firsthand knowledge of how production department works in collaboration
with other departments, i.e. Cutting, Planning, Stitching, Purchase etc.
Worked with Inventory control and purchase Department and learned how to deal
with customers orders.
Learned the importance of record keeping in hard and soft data formats.
Learned how the HRM department works and how it utilized the human resource
in well mannered way.
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References:
MR. Zeeshan (IT Department )
Leather Coordinator
http://leathercoordinator.com/
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Coordinators
http://www.scribd.com/doc/24975694/Analysis-of-Leather-Industry-in-Pakistan
http://en.wikipedia.org/wiki/Leather_jacket
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Internship Report of Leather

LEAHTER COORDINATORS (PVT) LTD.

Internship Report of Leather

Internship Report of Leather

Internship Report of Leather

History of leather industry in Pakistan-------------------------------------------06

Background of leather coordinator-----------------------------------------------06

Location of Leather tanneries in Pakistan---------------------------------------07

Company Vision and mission-------------------------------------------------------07

Market segmentation and market strategies-----------------------------------09

Internship Report of Leather

1.2 History of Leather Industry in Pakistan

LEAHTER COORDINATORS (PVT) LTD.

Internship Report of Leather

LEAHTER COORDINATORS (PVT) LTD.

Internship Report of Leather

1.4 Location of Leather Tanneries in Pakistan:

never to compromise on quality.

the Laws applicable, report earnings.

LEAHTER COORDINATORS (PVT) LTD.

Internship Report of Leather

market is separated as.

others business that will sell

amount of items for their

Internship Report of Leather

Value Based Price

Cost Based Price

option. Leather coordinator is charge 20 pct of earnings at any cost.

5.1.2 Place (Distribution procedure):

5.1.3 Promotion Strategies

LEAHTER COORDINATORS (PVT) LTD.

Internship Report of Leather

6.1 Availability of low cost skilled and technical labor

6.2 Large quantity of raw material:

Internship Report of Leather

sustainable policies for the benefit of the exporter as well as investors.

Stability in political environment

7.2 Economic situation

7.3 Social situation:

Internship Report of Leather

Attitude to foreign products and services.

7.4 Technological Factor:

Improvement in technology for production of cheap products

7.5 Environmental Factor:

7.6 Legal Factors:

Internship Report of Leather

Maximum wage legislation

Strong market image in foreign market

International price fluctuation

LEAHTER COORDINATORS (PVT) LTD.

Internship Report of Leather

Lack of technological inputs

Hard and fast international standards

LEAHTER COORDINATORS (PVT) LTD.

Internship Report of Leather

Full utilization of available resources

cover the amounts from debtors and at proper time

Internship Report of Leather

I met with General Manager of the Leather

coordinator and get information about respective departments, so that I will be

LEAHTER COORDINATORS (PVT) LTD.

Internship Report of Leather

Internship Report of Leather

Internship Report of Leather