SALAR AHMAD

MBA 1.5

GROUP B
ASSIGNMENT: CONTEMPORARY ISSUES IN MANAGEMENT

SUBMITTED TO : DR SHAHID ALI

ASSIGNMENT : 3RD

Question1:
Dilemmas:
Dilemma is a situation in which individual or portion of peoples has to choose from two
available options , which both may not favorable or desirable but have to choose one. In dilemma
there will be no clear picture of available options. Some time they choose on basis of indigenous
population , majority of peoples consider something right and on the basis of it we select an
option that may illegal but majority of peoples consider it right.

Ethical Dilemmas:
Ethical dilemma is complicated or complex situation that usually involves probable mental
conflicts between moral mandate or moral imperatives in which to follow or obey one would
result in violating other.

Examples from local businesses:

Bribe:
Bribe is an ethical dilemma in Pakistan. Corruption is widespread in Pakistan particularly in
police , government departments , hospital , education sectors and many other departments, so to
carry out your desired job or any other favor you have to pay bribe for that . even to get
government contracts you have to pay bribe from top to lower staff otherwise you will be stuck
there.

Low Quality products:

Pakistani businesses are offering low quality products for there customers, there is no such
quality control organization in Pakistan and if there is some one who can keep an eye on them
they are under immense pressure of corrupt politician or any other powerful person who are
using there powers in wrong directions. These low qualities products are causing major dieses in
consumers .

Cheap local medicines manufacturing companies:

There are many local medicines companies who are producing cheap medicines specially for
those rural areas where majority of peoples are poor and they cannot pay much for medicines and
also peoples of those areas or regions doesnt care much about quality or effectiveness of these
medicines.

Recommendations:
I would recommend strong judiciary, police department, NAB, strong food inspectors who can
keep close eye on all these illegal and health hazard activities. If our police investigate properly
and arrest some of these culprits, then the situation will change suddenly .

Question 2:
Comparison of three top and three bottom companies of KSE 100 Index in term of financial facts
and non financial facts
Top three companies:
1. OGDCL oil and gas development company limited
2. Standard chartered Pakistan
3. K-Electric

OGDCL facts:
Listed companies with OGDCL
1

Shell Pakistan Limited

Pakistan State Oil Company Limited

Pakistan Refinery Limited

Pakistan Petroleum Limited

Pakistan Oilfields Limited

National Refinery Limited

Mari Gas Company Limited

Byco Petroleum Pakistan Limited

Burshane LPG ( Pakistan)Limited

10

Attock Refinery Limited

11

Attock Petroleum Limited

S.no

categories

No of
shareholders

No of shares

%
percentage

Government of Pakistan

3,224,609,081

74.97

OGDCL Employee
Empowerment Trust

432,189,039

10.05

Others

120

5,334,054

0.12

Charitable Trusts

21

970,583

0.02

Co-operative societies

0.00

Foreign investors

117

524,981,937

12.21

Modarabas and Mutual Funds

71

51,055,638

1.19

Banks, DFIs, NBFIs

14

10,649,548

0.25

Joint Stock Companies

129

1,445,750

0.03

10

Insurance companies

12

17,019,982

0.40

11

Investment companies

646,253

0.02

12

Individuals

21,706

32,026,532

0.74

Total

22,200

4,300,928,400

100.00

No of employees :

Contractual employees : 218,000

Regular employees: 10,185,000

Standard chartered Pakistan:

Facts:

Profit and loss

Half year ended

30 june 2014
PKR million

Half year ended

20 june 2013
PKR million

Revenues

13,867

12,727

Non mark up expenses

199

139

Administrative expenses

6,433

6,089

Operating profit

7,236

6,500

Provisions

(18)

(682)

Profit before tax

7,254

7,182

Profit after tax

4,715

4,684

K-Electric Facts:
Units in million
Descriptions

2012-13

2013-14

2014-15

Units generated-gross

8,567

8,709

9,318

Units generated-net

7,903

8,050

8,614

Units purchased

7,257

7,282

7,497

Units sent out

15,160

15,232

16,111

Units sold

10,941

11,453

12,294

T and D loss

28%

25%

24%

Operational
performance

Summary of loss and profit

( PKR millions )

2012-13

2013-14

2014-15

Revenue

188,781

194,490

190,359

Consumption of
oil and gas and
purchase of
electricity

146,179

147,307

131,437

Gross profit

28,602

32,200

43,264

O and M
expenses

29,301

31,230

37,396

Financial
charges

13,960

11,275

9,760

Other charges

(4,661)

(4,897)

(3,311)

Profit before tax

4001

9,575

15,076

Profit after tax

6,826

11,887

28,325

Earning before
interest, taxes,
depreciations,
and amortization
(EBITDA)

26,903

30,159

34,337

Three Bottom companies:

1. Bata Pakistan
2. Siemens Pakistan
3. Grays of Cambridge Pakistan
Bata is family owned shoes manufacturing company , operates more then 75 countries .
Grays of Cambridge Pakistan is manufacturing company of sports products , ie cricket bats,
hockey sticks , tennis rackets etc . its current shares price is rs 72.93, grays market cap is total of
7,348,950 with revenue of more then 16 million.
Siemens Pakistan is engineering service provider .

Question 3:
Working in an stressful environment arise conflicts amongst stakes holders. These conflicts arise
from broken legal environment or shifting or priorities or even violence against staff members
and stakes holders. Despite of all these challenges there are ways and elements which can
minimize these conflicts and can help a company to build trust amongst skate holders. For
resolving these conflicts we have to established or build trust amongst them.

Communicate clearly:
Without clear and proper communication it is impossible for stake holders to know or recognize
priorities and constraints of one another. If company stake holders communicate with each other
at regular intervals it can minimize the risks of conflicts and can build trust .

Build relationship:
Trust can be developed by building good relationship or deeply rooted relationship amongst
stake holders. Companies are always in transition stage it changes continuously. This continuous
change arise some serious problems for a company so by building good relationship these
problems can be solved.

Minimize stress:
Staff members , stake holders in stressed environment or during crisis are under extreme stress
due to which they cannot perform well. By providing concealing to these peoples can minimize
stress from them and make them able to work for the betterment of company.

Be efficient and make it happens:

Be efficient and effective and make it happens what you are saying for building trust,
communication , building relationship and minimizing stress. If these activities are just for
documentation then it cannot build trust , if you are working on it and do some practical work for
the betterment of these stake holders then it will build trust.

Pakistani companies who went bankrupt:

KASB bank:
KASB announced bankruptcy and closed its business on November 14, 2014 . State bank of
Pakistan instructed KASB to fine a business partner willing to take KASB and reschedule there
term of business.

BCCI:
Bank of credit and commerce international was founded in 1972 by Agha Hassan Abidi, BCCI
was the 7th largest bank in world by holding more then 20 $millions. In july 1991 BCCI failed
because of its illegal activities and filled for bankruptcy.

Insta phone:
Insta phone was the first cellular communication brand launch by M/S pakcom limited. PTA
cancelled license of insta phone for not paying renewal license fee that was total of 291
$million.

Question 4:
Most important manufacturing industry of Pakistan

Textile Industry:
Textile industry is the most important manufacturing industry of Pakistan. Textile is the 2nd
largest manufacturing industry after agriculture. Textile industry has a major role in uplifting the

economy of Pakistan , textile industry contribute 9.5% of Pakistan total GDP . Textile industry
to contributes 52% of total exports of Pakistan and 46% of total manufacturing .
Textile industry is generating huge employments in Pakistan ie: more then 15 million which is
40 % of total labor force . Pakistan is 8th largest textile exporter , 4th largest cotton producer in
ASIA . Pakistan is exporting cotton yarn , cotton cloth, knitwear, bed wear, towels and ready
made garments.

Quantity in tons
Cotton cloth
Cotton yarn
Ready made garments
Bed wear
Towels
Knitwear

tons
912,134
366,108
13,483
128,700
77.761
52,622

Value in $ million
Cotton cloth
1,421
Cotton yarn
2,980
Ready made garments 66,592
Bed wear
6,771
Towels
4,746
Knitwear
19,905

Pakistan shares of textiles in world trade

Period

Cotton yarn
World
Pakistan
export
export

2003
2120
503.5
2004
1783
504
2005
1783
671
2006
2380
780
Source: ICAC(world textile demand 2007)

Pak shares
in world
trade %
23.8
28.3
37.6
32.8

Cotton cloth
World
Pakistan
export
export
2856
3065
3180
3235

283
282.2
239.9
263.3

Pak shares
in world
trade %
9.9
9.2
7.5
8.1

Growth of cotton textile Industry in Pakistan

periods
2007-08

units
521

spindles
11834

Growth%
13

rotors
188

Growth%
25

Looms
8

Groth%
0

2008-09
2009-10
2010-11
2011-12
2012-13

521
526
524
526
526

11280
11392
11762
11946
11946

0.12
0.99
3.25
1.56
1.56

194
195
196
214
214

3
1
1
9
9

8
7
7
8
8

0
-12.50
0.00
7.71
7.71

Production , Exports and Domestic requirement of cloth

Quantity in million sq meter
period

Mill
sector

Non mill
sector

Total
production

Exports
quantity

2007-08
2008-09
2009-10
2010-11

1016.3
1019.6
1009.5
1029.6

7899.05
7995.5
7940.1
7988.65

9005.4
9015.2
8949.7
9018.32

2035.1
1898.5
1753.1
2297.3

Source: TCO/CSO

Pakistani Textiles principal buyers

Values in 000 $
Countries
Australia
South korea
Sri lanka
Portugal
Canada
South Africa
Saudi Arabia

2008-09 textile exports

Value
84,767
91,182
105,405
113,480
132,530
136,218
169,618

% of total
0.9
1.0
1.1
1.2
1.4
1.4
1.8

% of
productio
n
22.69
21.0
19.59
25.48

Available for local

market
quantity % of
productio
n
6970.3
77.4
7116.7
78.9
7196.6
80.4
6720.8
74.5

France
Hongkong
Netherland
Turkey
Belgium
UAE
Spain
Bangladesh
Italy
China
Germany
UK
USA
Other countries
Total
Source :TDAP

228,946
282,674
293,778
304,380
321,600
324,872
327,980
334,342
385,168
457,414
547,440
678,592
2,925,545
1,318,458
9,564,390

2.4
3.0
3.1
3.2
3.4
3.4
3.4
3.5
4.0
4.8
5.7
7.5
30.6
13.8
100.00

Question 5:
Important ingredients for starting-off a business:
Definition of the problem:
Every business starts with the aim to solve the problems of customer not only to maximize the
profit, before staring the new business we have to research or gather information about our
market demands , customers needs and wants to know there problems that what kind of product
they expect from us .

Solution and benefits:

How our product will solve customers problems, how we make our products , how it gives
benefits to customers. How we can fulfill customers requirements.

Industry and market size:

Before starting a business we will need enough knowledge of our industry, market size , market
segmentation and market dynamics, customers landscape. Who we are targeting , which segment
we are targeting, where are our customers , or which industry we are choosing to start our
business.

Explanation of business model:

In this step we explain our whole business plan , how to start this business , from where
resources will come, how much we can earn , our revenues , expanses , product or service
business.

Competitors and sustainable advantage:

Know your competitors , who can give you a tough time in market, how you compete them make
strategies for that. Second look for the barriers in entry to a business and make such strategies
which help your business to sustain for longtime in market.

Sales and marketing strategy:

Here you go to market , you want to launch your product to market, now which distribution
channel you are selecting , how can you make deal or sign agreements with your distributers.
What are your marketing strategies , promotion , advertisements strategies etc.

Executive team:
Every business want to hire such executive teams which can run there business well and make it
successful in long term . you have to hire financial experts , HR and marketing experts and other
skilled persons which give you benefit to your business.

Funding requirements:
How you allocate your resources , that may come from your personal savings or from family or
loans from banks. Make a plan for it how you invest it and get maximum profit.

Financial forecast:
Forecasts your financial reports which includes revenues , expances of previous years and project
them with your future .

Exit strategy:
You have to make an exit strategy , just in case if the competition is very tough in market and
survival for your business is very hard so you quit that business or exit from that market and
enter to another one.

Pakistan Entrepreneurs:
SHAMOON SULTAN CEO khaadi:

Shamoon sultan is Pakistan fashion designer , fashion businessman and CEO of famous Pakistan
brand Khaadi . shamoon did his graduation from Indus valley school of arts Karachi . after his
graduation he started working for Noor Jehan Bilgrami. After getting experiences he starts his
own business with the name of Khaadi . shamoon open his first store in zamzama Karachi and
now owns a chain of more then 40 stores across Pakistan as well as Europe , USA and Australia
and middle east.

MARIA B:
Maria B is leading designer brand of Pakistan with vast retail outlets and affordable fashion
accessories for women. Maria graduated from Pakistan one of finest fashion institute Pakistan
institute of fashion design PIFD . she start its business from one small stitching unit in Lahore
now she is one the most diverse fashion design brand with more then 25 standalone outlets in 12
major cities of pakistan as well as 6 international outlets.

ROSHANEH ZAFFER:
Managing director and founder of Kashaf micro finance foundation . Roshaneh zaffer holds a
degree in international development and BSC degree in finance from yale university and
Wharton university respectively. She starts kashaf foundation after she meet with dr younas of
Bangladesh founder of grameen bank . she start it from Lahore and then widening it to different
parts of country . kashaf foundation have currently 185 branches across Pakistan .
Some other Pakistan most famous Entrepreneurs

SANA SAFINAZ :
Fashion designers

DEEPAK PARWANI :
Fashion designer

JEHAN ARA:
President of Pakistan software house association.
SALMA JAFRI:
A successful marketer , CEO of WorldPL.net
SIDRA QASIM:
Co founder of shoes company known as MARKHOR

SHEEBA NAJMI:
Founder of TECH FOR CHANGE
KALSOOM LAKHANI:
CEO of Invest to Innovate.