Taj Din

Nirala Private Limited

Introduction Nirala is Pakistan's leading multinational group - consisting of 10 rapidly grow ing companies and a vision of being the world's largest manufacturer of ethnic f ood. Our products range from Sweets, Snacks, Restaurants and Dairy products to S oftware. The innovative use of technology has played a pivotal role in the growt h of the group as it has evolved from a single business to over 5 different busi nesses across 40 locations worldwide in the last three years. Our key strength r emains investment in human resource and a strong focus on technology. Nirala for esees an even more aggressive growth path over the next five years and invites c ommitted professionals to join its journey. Nirala Sweets, Pakistan's leading mi thai (sweetmeats) manufacturers is pursuing a geographical expansion. The compan y has successfully launched a retail outlet outside its home city, where all the previous outlets were located. Many of the lessons learnt in that expansion are either forgotten, or many unknown factors emerge in the planned new project in Karachi. A new professional manager, hired by the company is sent to resolve the problems. The case allows students to see the many uncertainties that affect a new project as well as the importance and limitations of project planning. The c ase is intended for early use in a graduate course in Project Management or Mana gement of Growth. 52 years ago Taj Din, migrated from India and laid the foundation of a dream so unique for its time that he choose to call it "Nirala". Over the years, his fami ly has embraced the timeless traditional values of good taste and unmatched qual ity, by bringing you fresh mouth watering mathai so uniquely called Nirala! Toda y, proudly uphold the traditions of pioneer that have earned the love and loyalt y of millions of customers all over the world. Nirala continue to make the happy moments of your life truly memorable and joyful and give you all the right reas ons to stay in love with our irresistible temptation.

History Over half a century ago, the foundation of Nirala was laid in Lahore, Pakistan, with the commitment to provide people with delectable quality delights. The grea t journey started when Taj Din migrated from Amritsar, India, to Lahore and star ted a small breakfast shop in the inner city of Lahore in 1948. The passion for quality, distinctiveness and hard work set by our founder is the spirit we seek as our guiding principle. Nirala family Over 50 years ago Taj Din, our founder introduced the best mithai the city of La hore has ever known. Today, Taj Din's family strives to bring you the best of th ose age-old recipes.

Taj Din: Taj Din founded this business d entrepreneurial spirit that ness. His special emphasis on lways found the same superior ala Sweets. Farooq Ahmad: Taj Din's son Farooq Ahmad, the Chairman of the Group, has been gifted with his father's vision and entrepreneurial spirit in his blood. It was he who took the shop out from the congested Fleming Road in the old city of Lahore and relocated to the more central and accessible area of Jail Road. He also paid special emph asis on shop environment and packaging design, besides of course the product qua lity. Faisal Farooq Farooq Ahmad's eldest son, Faisal Farooq was made CEO of the business by his fat her in 1997, at the young age of just 23 years, when Farooq Ahmad fell unwell an d could not devote full time and attention to the business. Faisal courageously took about the challenge of growing the family business. With a dynamic approach and an MBA, Faisal kept adding more and more shops across the country and today has added new businesses to the establishment including a large milk processing and packaging plant, snacks plant and 2 restaurants, besides VCS (software hous e) and Porsche Pakistan, the dealership for the most sought after 'dream car' in the world! more than half a century ago. It was his vision an made Nirala a strong brand name in the Mithai busi 'nothing but the best' ensured that the customer a quality whenever he experienced any product of Nir

Ahmer Farooq Farooq Ahmad's younger son, Ahmer Farooq is a creative individual with an MBA an d education in creative design from the UK. Besides heading the creative and com munication side of the Group, Ahmer is actively involved in the Companies' day-t oday decision making. Omar Farooq and Fahad Farooq Farooq Ahmad's youngest sons, Omar and Fahad are twins and are still completing their education so that they when they join Nirala, they can add value to the bu siness.

Present of Nirala Sweets Companies The Nirala Group consists of ten companies operating in different market segment s Anmol Company N Design N Restaurants Nirala Canada Ltd. Nirala Dairy (Pvt) Ltd. Nirala Snacks (Pvt) Ltd. Nirala (Pvt) Ltd. Nirala (UK) Ltd. Porsche Pakistan Taj Trading

Anmol Company Anmol Company holds the exclusive franchise rights in Pakistan for Nirala Sweets & food products. Anmol Company is responsible for manufacturing, distributing a nd selling Nirala Sweets, which is undoubtedly the leading brand in the Mithai m arket in Pakistan. There is a wide range of products that the company has to off er. The brand has been built to this level over a period stretching beyond half a century. At the moment the Company has 39 shops; 37 in 9 cities of Pakistan an d 2 abroad, in the UAE. N Design Nirala cares for nature and values art. The group contributes in designing eleme nts by offering a wide range of designing services that include multimedia prese ntations, web sites, outdoor and press advertisements, modernistic dcor for super markets and retail outlets and outputs for print media. These services are rende red to sister concerns and to other leading companies and multinationals operati ng in telecommunication, banking, oil and gas, and textile sectors etc.

N Restaurants N Restaurant is another entity of the Nirala Group of Companies. When Taj Din es tablished a sought after breakfast joint in the busy Mewa Mandi of Lahore way ba ck in 1948, few would have imagined that more than 50 years later, his grandson will establish a classy restaurant in the busy and most posh locality of Lahore city, Defense Y Block. Ironically, the restaurant, by the name of Caf Gowalmandi, is most famous today for the traditional breakfast served on weekends and all g azetted holidays. Having opened its first branch in September 2004, a second bra nch was added, in the busy St. Marys Park (Alfalah Mini Golf) in the latter part of 2005. Nirala Canada Ltd. The Company is being established to introduce Nirala Sweets and related products in the Canadian market. The core activity will include import of semi-finished products from Pakistan and to refine them at the semi kitchen established in Can ada, before marketing the product at various stores. Semi kitchen will only be e ngaged in the refining of product or bringing them in marketable condition. Prod ucts will be marketed through a network of retail outlets around big business ma rkets in Canada, like Toronto, Montreal, Ottawa, Vancouver and Calgary. The regi stered office of the company is located in Vancouver, British Columbia.

Nirala Dairy (Pvt) Ltd. An integrated milk & milk powder processing plant has been set up at Tandlianwal a, near Faisalabad, under the name of Nirala Dairy (Private) Limited. Nirala Doo dh, the UHT packaged milk of the Company was launched in June 2005 and is now th e favourite brand in many households. This is due to the strict quality measures that the Company religiously adheres to. Nirala Desi Ghee (Butter Oil) was laun ched earlier and is leading the market in its category due to is superior qualit y and taste. Many more products in the dairy range are being developed and will be launched shortly. Nirala Snacks (Pvt) Ltd. Nirala Snacks Pvt Ltd Our saltish range is one of the best and can be had with a cup of tea, coffee or a refreshing drink. An ideal snack prepared in natural oi l to invigorate you and provide utmost fulfillment, our snacks range consists of Chips, Dal Masoor, Dal Safaid, Mongra, Namak Paray, Samosay (Potato and Chicken ) and Sawaian, and are available across Pakistan from Nirala outlets as well as leading retail stores and supermarkets.

Nirala (Pvt) Ltd. Nirala Private Limited is the custodian of the brand name Nirala. The brand is o wned by this company and is a registered trade mark world over. Nirala (UK) Ltd. For United Kingdom & European Union, Nirala UK Limited holds the exclusive franc hise rights of the Nirala brand. Under the franchise, it can set up Nirala shops , manufacture, sell and market Nirala products in its domain. Although Nirala UK Limitedis yet to open its first shop in the region, it is aspiring to capture th e hearts of many sweets lovers in the region.

Mission Statement To make Nirala a global brand, recognizable for uniqueness worldwide. To be an i nnovative and pioneer company continuously offering unique products and interest ing service concepts others cannot even dream of. Vision Statement Our vision is to make Nirala a global brand, a brand recognizable for its unique ness and quality in ethnic food market all around the worldwide. In this percept ive we consider our self as an innovative and a pioneer company, continuously of fering unique products and interesting service concepts that others havent even d reamt of. Core Values The core values of our organization which we consider the Spirit of Nirala have not changed over the past half century. Those values and traditions which have m ade the brand Nirala a market leader for the past 59 years are: Continuous Impro vement Innovation Integrity Team work and Social Responsibility

Decision Making Defination: The process of selecting from several choices products or ideas, and taking acti on. Decision making is the cognitive process leading to the selection of a cours e of action among variations. Every decision making process produces a final cho ice. It can be an action or an opinion. It begins when we need to do something b ut we do not know what. Therefore, decision making is a reasoning process which can be rational or irrational, and can be based on explicit assumptions or tacit assumptions. Common examples include shopping, deciding what to eat, when to sl eep, and deciding whom or what to vote for in an election or referendum. Decisio n making is said to be a psychological construct. This means that although we ca n never "see" a decision, we can infer from observable behavior that a decision has been made. Therefore, we conclude that a psychological event that we call "d ecision making" has occurred. It is a construction that imputes commitment to ac tion. That is, based on observable actions, we assume that people have made a co mmitment to affect the action. Structured rational decision making is an importa nt part of all science-based professions, where specialists apply their knowledg e in a given area to making informed decisions. For example, medical decision ma king often involves making a diagnosis and selecting an appropriate treatment. S ome research using naturalistic methods shows, however, that in situations with higher time pressure, higher stakes, or increased ambiguities, experts use intui tive decision making rather than structured approaches, following a recognition primed decision approach to fit a set of indicators into the expert s experience and immediately arrive at a satisfactory course of action without weighing alte rnatives. Also, recent robust decision efforts have formally integrated uncertai nty into the decision making process.

Decision making styles

Strategic Structure All Nrala strategies are made by keeping in mind the mission statement of the or ganization, which clearly reflects the companys objectives and goals. After decid ing their task/objectives, they start analyzing the outside environment to analy ze weather their strategies are applicable or not. If it is applicable then they start evaluating about opportunities and threats that they could face. After an alyzing internal factors, management starts working on allocating, analyzing org anization resources. When they allocate resources, they start finding specific a reas where they look and point out their strengths. Then they summarized all the internal and extrernal data and decide how to execute their strategies. After h aving all the planning and collection of required data they start the execution of their plans and every single employee try its best to make it successful. And at the end the management starts evaluating the results either they are satisfa ctory or not.

Structure of the Organization A key issue in accomplishing the goals identified in the planning process is str ucturing the work of the organization. Organizations are groups of people, with ideas and resources, working toward common goals. The purpose of the organizing function is to make the best use of the organization s resources to achieve orga nizational goals. Organizational structure is the formal decision-making framewo rk by which job tasks are divided, grouped, and coordinated. Formalization is an important aspect of structure. It is the extent to which the units of the organ ization are explicitly defined and its policies, procedures, and goals are clear ly stated. It is the official organizational structure conceived and built by to p management. The formal organization can be seen and represented in chart form. An organization chart displays the organizational structure and shows job title s, lines of authority, and relationships between departments. The informal organ ization is the network, unrelated to the firm s formal authority structure, of s ocial interactions among its employees. It is the personal and social relationsh ips that arise spontaneously as people associate with one another in the work en vironment. The supervisor must realize that the informal organization affects th e formal organization. The informal organizations can pressure group members to conform to the expectations of the informal group that conflict with those of th e formal organization. This can result in the generation of false information or rumors and resistance to change desired by management. The supervisor should re cognize the existence of information groups, identify the roles member play with in these groups, and use knowledge of the groups to work effectively with them. The informal organization can make the formal organization more effective by pro viding support to management, stability to the environment, and useful communica tion channels. Even though the differences among organizations are enormous, the re are many similarities that enable them to be classified. One widely used clas sification is the twofold system (mechanistic versus organic forms of organizati onal structure) developed by Tom Burns and G. M. Stalker in their study of elect ronics firms in the United Kingdom. (See Burns, Tom and G. M. Stalker, Managemen t of Innovation, London: Tavistock Publications, 1961, p. 19.) The mechanistic s tructure is the traditional or classical design, common in many medium- and larg e-size organizations. Mechanistic organizations are somewhat rigid in that they consist of very clearly delineated jobs, have a well-defined hierarchical struct ure, and rely heavily on the formal chain of command for control. Bureaucratic o rganizations, with their emphasis on formalization, are the primary form of mech anistic structures. According to Max Weber, bureaucracy is a form of organizatio n characterized by a rational, goal-directed hierarchy, impersonal decision maki ng, formal controls, and subdivision into managerial positions and specializatio n of labor. Bureaucratic organizations are tall consisting of hierarchies with m any levels of management. In a tall structure, people become relatively confined to their own area of specialization.

Bureaucracies are driven by a top-down or command and control approach in which managers provide considerable direction and have considerable control over other s. Other features of the bureaucratic organization include functional division o f labor and work specialization. On the other hand, the organic structure is mor e flexible, more adaptable to a participative form of management, and less conce rned with a clearly defined structure. The organic organization is open to the e nvironment in order to capitalize upon new opportunities. Organic organizations have a flat structure with only one or two levels of management. Flat organizati ons emphasize a decentralized approach to management that encourage high employe e involvement in decisions. The purpose of this structure is to create independe nt small businesses or enterprises that can rapidly respond to customers needs or changes in the business environment. The supervisor tends to have a more pers onal relationship with his or her employees.

Diagram: 1 GM OPERATIONS DGM OPERATIONS Quality Control Supply (Func.Sit) Semi kitchen Karachi & Dubai Sweets Production Finished Goods Store Packing Department

Diagram: 2 GM GM Shop Operations Operation Manager Pakistan OPERATION MANAGER UAE Operation Manager UAE Operation Manager UK MANAGER Lahore Karachi ISL ISLAMABAD Dubai DUBAI IDubai Semi Sharjah GjIslamabad & Rawalpindi SIA Sialkot Peshawar

Diagram: 3 M GM Marketing MARKETING GM MARKETING CUSTOMIZED CUSTOMIZED PACKAGING CREATIVE MARKETING SHOPS Customized Packaging Creative Department New Product Line Development Shops Marketing Web Marketing PRODUCT SERVICE PACKAGING

Diagram: 4 GM GM Administration ADMINISTRATION HUMAN RESOURCE PROJECT Maintenance

Diagram: 5 Manager Corporate Affairs CORPORATE TAX Tax Affairs L Legal Affairs

Taj Din smiles again

Managerial Hierarchy Top Managers Middle Managers First Line Managers Operatives

Levels of Management Top Managers: Managers at or near the top level of management who are responsible for making t he organization-wide decisions and establishing the goals and plans that affect the entire organization. Middle Managers: Managers between the first line level and the top level of the organization who manage the work of first line managers. They are bound to take orders from the t op management and bound to implement them on lower level of managerial hierarchy . First line Mangers: They are at the third level of managerial Hierarchy. Managers at the lowest leve ls of the organization who manage the work of non managerial employees who are d irectly involved with the production or creation of the Organizations products. In other words they are also known as supervisors. Operatives: They are at lowest level of managerial Hierarchy. They are the workers who are a ssigned a specific task or a job to be done. They do not supervise any one and t hey obey the above managerial Hierarchy.

Hierarchy of Organization CEO CEO MR. Faisal Farooq GM GM GM GM FINANCE CORPOR GM Operation Mr. Sohail Rana OP GM Shop.0peration Mr. Omer MR.OMER GM Marketing Mr.Saad Zahoor GM Administration Mr. Shahbaz MR SHAHBAZ Finance Manager M Mr. Azam MR.AZAM Corporate Affairs Mr. Hafiz Ishaq

Culture of Organization

What is Culture? Basically, organizational culture is the personality of the organization. Cultur e is comprised of the assumptions, values, norms and tangible signs (artifacts) of organization members and their behaviors. Members of an organization soon com e to sense the particular culture of an organization. Culture is one of those te rms that s difficult to express distinctly, but everyone knows it when they sens e it. For example, the culture of a large, for-profit corporation is quite diffe rent than that of a hospital which is quite different that that of a university. You can tell the culture of an organization by looking at the arrangement of fu rniture, what they brag about, what members wear, etc. -- similar to what you ca n use to get a feeling about someone s personality. Corporate culture can be loo ked at as a system. Inputs include feedback from, e.g., society, professions, la ws, stories, heroes, values on competition or service, etc. The process is based on our assumptions, values and norms, e.g., our values on money, time, faciliti es, space and people. Outputs or effects of our culture are, e.g., organizationa l behaviors, technologies, strategies, image, products, services, appearance, et c. The concept of culture is particularly important when attempting to manage or ganizationwide change. Practitioners are coming to realize that, despite the bes t-laid plans, organizational change must include not only changing structures an d processes, but also changing the corporate culture as well. There s been a gre at deal of literature generated over the past decade about the concept of organi zational culture -- particularly in regard to learning how to change organizatio nal culture. Organizational change efforts are rumored to fail the vast majority of the time. Usually, this failure is credited to lack of understanding about t he strong role of culture and the role it plays in organizations. That s one of the reasons that many strategic planners now place as much emphasis on identifyi ng strategic values as they do mission and vision. Defination: Organizational culture, or corporate culture, comprises the attitudes, experienc es, beliefs and values of an organization. It has been defined as "the specific collection of values and norms that are shared by people and groups in an organi zation and that control the way they interact with each other and with stakehold ers outside the organization. Organizational values are beliefs and ideas about what kinds of goals members of an organization should pursue and ideas about the appropriate kinds or standards of behavior organizational members should use to achieve these goals. From organizational values develop organizational norms,

guidelines or expectations that prescribe appropriate kinds of behavior by emplo yees in particular situations and control the behavior of organizational members towards one another. Senior management may try to determine a corporate culture . They may wish to impose corporate values and standards of behavior that specif ically reflect the objectives of the organization. In addition, there will also be an extant internal culture within the workforce. Work-groups within the organ ization have their own behavioral quirks and interactions which, to an extent, a ffect the whole system. Task culture can be imported. For example, computer tech nicians will have expertise, language and behaviors gained independently of the organization, but their presence can influence the culture of the organization a s a whole. Strong / weak cultures: Strong culture is said to exist where staff respond to stimulus because of their alignment to organizational values. Conversely, there is weak culture where the re is little alignment with organizational values and control must be exercised through extensive procedures and bureaucracy. Where culture is strongpeople do th ings because they believe it is the right thing to dothere is a risk of another p henomenon, Groupthink. "Groupthink" was described by Irving L. Janis. He defined it as "...a quick and easy way to refer to a mode of thinking that people engag e when they are deeply involved in a cohesive in-group, when members strivings for unanimity override their motivation to realistically appraise alternatives o f action." This is a state where people, even if they have different ideas, do n ot challenge organizational thinking, and therefore there is a reduced capacity for innovative thoughts. This could occur, for example, where there is heavy rel iance on a central charismatic figure in the organization, or where there is an evangelical belief in the organizations values, or also in groups where a friendl y climate is at the base of their identity (avoidance of conflict). In fact grou pthink is very common, it happens all the time, in almost every group. Members t hat are defiant are often turned down or seen as a negative influence by the res t of the group, because they bring conflict (conflicting ideas) and disturb the central culture. In cultural studies, culture is seen as ethnocentric (Barone, J .T, Switzer, J.Y), or culturocentric, meaning that we tend to think that our cul ture/subculture is the best. The stronger the culture, the greater the risks of groupthink. By contrast, bureaucratic organizations may miss opportunities for i nnovation, through reliance on established procedures.

Innovative organizations need individuals who are prepared to challenge the stat us quo be it groupthink or bureaucracy, and also need procedures to implement new ideas effectively. Leadership and how your people work together In looking at the family businesses organizational culture, we are assessing be haviors that are important to creating a strong effective staff and competent le adership. Leadership In the organizational culture, leadership deals with creating a clearly articula ted vision and possessing the skills and the resolve to recruit and develop foll owers who are committed to carrying out the vision. Having the ability to see th e bigger picture and maintaining a balance between high-level strategies and fro nt-line tactics. Different leadership styles are available depending upon concern for profit or c oncern for production. An imbalance in the concerns tends to sway the leader to a less effective style.

Questionnaire from Employees Name: Profession: Culture of employees in Organization: 1. Is the environment Friendly? Yes No May be Are you satisfied with the Hierarchal management of the company? Yes No May be Are you satisfied? Yes No May be How uch work load is given to you? Less More Burden Are you free to take decisions f or challenges relation to you job description? Yes No May be 2. 3. 4. 5.

6. Is the company providing you the fringe benefits? Yes No May be What do you thin k about your job protection? Yes No May be Do you feel convenient with the polic ies of the company relating to employees? Yes No May be What are the criteria of job Selection? Permanent Contract basis 7. 8. 9. 10. What types of problems you face during the job? Financial Administration Over burden All the above

Motivation and Reward Special Discount Given To Employees: On the marriage of any employee of Nirala, a gift of 10 kg sweets are given On E ID 1kg sweet is given as free to each employee In RAMADAN, employee s is given f ree if tar party. Company beliefs according to team work: Team work, mutual trust and respect leads to personal growth and dynamic improve ments in organizational team work. Team work shifts the culture of organization into a more productive atmosphere. They strongly believe on friendly environment . Effects of team work on company: Less duplication of work and rework. Improved morale Greater efficiencies in pro cesses. Less office miscommunication. Greater profitability.

Our Teams Shop Operations Quality Operations Marketing MIS Human Resource Finance & Accoun ts Administration Production Dairy Processing Stores & Procurement

Shop Operations Nirala is the best opportunity to utilize my skills to the fullest potential Mu hammad Yasin Shahid National Sales Manger MBA - Quaid-i-Azam University Islamaba d I have learnt and fulfill lots of challenges and feel proud to be an employee o f Nirala! Sidra Ghaffar Sales & Operations Coordinator B.Com Quality Operations It is exciting to see high quality standards at Nirala Asifa Khalid Sr. Qualit y Assurance Manager MBA, Superior University, Lahore. I feel proud to work in House of taste with various products and contributed to export and new products rewarded by promotion coz Lag Gaya Na chaska. Ayaz Khu rram Sir R & D Executive M.Sc (Hons) Food Technology, University of Agriculture, Faisalabad.

Marketing Its Different, Its Nirala! Saad Zahur Khan GM, Marketing & New Business Develop ment MBA, LUMS - B.ARCH, NCA. Everyday Is A Winding Road! Sharjeel Hasan Assistant Brand Manager MBA, PCBA. MIS Each day brings with itself a fresh challenge - that is what keeps me going at Nirala! Arsalan Ijaz Anwer Group Manager MIS & eCommerce BSc (Hons) Computer Sc ience, LUMS. This place provokes an Irresistible temptation to do better than the extraor dinary! Nabeel Akmal Qadeer Deputy Manager, MIS BSc (Hons) Computer Science, FA ST-NU, Lahore.

Imran Zarrar System Administrator MCS, University of South Asia, Lahore. Nirala helps me discover myself every day Sumayya Zia Jr. System Analyst BSc ( Hons) Computer Science, FAST-NU, Lahore Nirala, Nirala Hai! Nadeem Shafiq Marketing Executive B.A.

Human Resource Live a Nirala life Usman Ghani HR Assistant MBA, Institute of Management Scien ces.

Finance & Accounts Youthful Nirala team is my source of motivation! Muhamad Azam Adviser Account, Finance & Taxes Fellow Member, ICAP.

Working with Nirala is sweaty and salty in a progressive group. Reduction in pa nic of tax and streamlining the tax matters. In the result of painful efforts fa vorable ITAT orders for NPL received and subsequently its publication reporting in Taxation Journals for future reference Hafiz M.Ishaq Malik Manager Tax & Cor porate Affairs C.A.(Finalist) ICAP. Company s vision for a completely computerized environment motivates me to work with Nirala Naveed Ahmad Chief Accountant ACCA Part II UK.

Administration Good working environment & above all a talented bunch of colleagues to work wit h Shahbaz Ali Manager, Administration. Production My most memorable day at Nirala was when i got a car on achieving my Dairy targ et! Sohail Rana GM, Production Operations MBA, College of Business Administrati on - Production Management Professional, PIQC. Working in Nirala means a lot to me, as this company has a history of more than half a decade! M. Arif Head Karigar, (Laddoo) Working for over 19 years with N irala. When Nirala launched its Dairy project, we all felt really honored and special Adbul Sattar Head Karigar Working in Nirala for over 25 years.

Dairy Processing Nirala is my life! Muhammad Babar Riaz Project Manager, NDPL MBA, Institute of Leadership and Management

Stores & Procurement I wish my life was as organized as Nirala store! Arif Nazir Asst. Manager, Sto res Bsc, Faisalabad I love Nirala Stores Haroon Iqbal Store Office

Departments of the organization Departments Like any professional organization, the working at Nirala also follows a well pl anned organgram. The Nirala Group comprises of the following departments: Administration Finance & Accounts Human Resource Marketing Milk Procurement MIS Production Quality Assurance Retail Store Shop Operations Store & Procurement Su pply & Distribution

Administration Efficient management of all administrative affairs of Nirala Group of Companies is the job of the Administration department. From legal matters to general day-t o-day operations of the office, the Administration department ensures that all a ffairs run smoothly. Finance & Accounts The Finance and Accounting departments at Nirala are responsible for the total f inancial management of the different businesses of the Group. From the usual acc ounting statements and sheets to risk and portfolio management, the team ensures that every rupee coming into and out of the Companies pockets is properly docu mented and audited.

Human Resource The Human Resource department at Nirala spearheads the recruitment process to en sure that the finest human resource is taken on board at Nirala. Resumes of cand idates are carefully filed and documented for current or future reference. The d epartment, besides carrying out succession planning, maintains and implements HR policies pertaining to employment, retention and superannuation. Assessing trai ning needs of employees and ensuring adequate training is also carried out by th e professional HR team at Nirala. Marketing Consisting of leading marketing professionals of the industry, who are graduates of top business schools of Pakistan, the Marketing Department ensures that from product need identification to product development, launch and post-launch, all strategic decisions are made based on authentic information and research. Ident ifying the target markets, effectively communicating to them and building the im age of the brands as well as the Companies, is the job of the professionals runn ing the marketing at Nirala.

Milk Procurement As more than 90% of our food products are milk based, the entire Milk Procuremen t department plays a critical role in defining the quality of the end product th at reaches our customers. Ensuring regular collection of fresh and pure milk rig ht from the farmer to the factory and ascertaining the freshness of milk all acr oss the milk procurement process, is the responsibility of Milk Procurement depa rtment, consisting of food technologists working at the collection centers and v eterinary doctors providing service to the farmers. MIS The MIS department at Nirala ensures that all automation is running error-free a t all times. Regularly modifying and updating the Company s accounting software is also the MIS team s responsibility.

Production Modern technology is part and parcel of Production at Nirala. More than 20% of M ithai production at Nirala Sweets is carried out at automated plants, either imp orted from abroad or custom-made in the country. Fresh and crisp snacks products of Nirala Snacks (Pvt.) Ltd., are prepared and packaged on modern machines as w ell. As far as Nirala Dairy (Pvt.) Ltd., is concerned, the state-of-the-art plan t set up at Tandlianwala near Faisalabad, has a processing capacity of more than 300,000 liters of milk per day, making it one of the largest in the country. Pr ofessionally qualified human resource efficiently works night and day to maintai n highest hygiene standards. Quality Assurance Quality Assurance is strictly followed in all companies of Nirala Group. Be it N irala Sweets, Nirala Dairy or Nirala Snacks, qualified food technologists at thi s department ensures that highest quality parameters are adhered to through all steps of production and that the products reach the consumers as per promise.

Retail Store Whereas Shop Operations is the sales force of Nirala Sweets, the Retail Sales ar e responsible for the sale of all products of Nirala Dairy and Nirala Snacks at all leading retail outlets in the cities and towns where Nirala has entered. At the moment, Nirala Dairy and Nirala Snacks products are sold at more than 30000 retail shops across more than 50 cities of Pakistan. Shop Operations All operations of Nirala s 39 company managed outlets are run by the shop operat ions department. This department, in simpler terms, is the sales force of the bu siness. It includes professionally trained front-line salesmen at the shops, exp erienced floor managers, and area managers, headed by a General Manager. Identif ying strategically new locations and opening new shops is also done by this team .

Store & Procurement The Stores & Procurement department working under Nirala Sweets is responsible p rimarily for procurement of all raw and packaging material and keeping its recor d for Nirala Sweets and Caf Gowalmandi. Supply & Distribution This department falls under Nirala Sweets and ensures timely and effective distr ibution of the products to the chain of Nirala Sweets stores spread all across P akistan. From transportation management to obtaining route permits and approvals , is done by this department.

The BCG Matrix The BCG matrix The BCG matrix method is based on the product life cycle theory that can be used to determine what priorities should be given in the product portfolio of a busi ness unit. To ensure long-term value creation, a company should have a portfolio of products that contains both high-growth products in need of cash inputs and low-growth products that generate a lot of cash. It has 2 dimensions: market sha re and market growth. The basic idea behind it is that the bigger the market sha re a product has or the faster the product s market grows the better it is for t he company.

Placing products in the BCG matrix results in 4 categories in a portfolio of a c ompany: 1. Stars (=high growth, high market share) - use large amounts of cash and are leaders in the business so they should also generate large amounts of cash. - Frequently roughly in balance on net cash flow . However if needed any attempt should be made to hold share, because the reward s will be a cash cow if market share is kept. 2. Cash Cows (=low growth, high market share) - profits and cash generation should be high , and because of the low growth, in vestments needed should be low. Keep profits high - Foundation of a company. 3. Dogs (=low growth, low market share) - avoid and minimize the number of dogs in a company. - beware of expensive turn around plans. - deliver cash, otherwise liquidate. 4. Question Marks (= high growth, low market share) - have the worst cash characteristics of all, because high demands and low retur ns due to low market share - if nothing is done to change the market share, ques tion marks will simply absorb great amounts of cash and later, as the growth sto ps, a dog. - Either invests heavily or sells off or invests nothing and generate s whatever cash it can. Increase market share or deliver cash.

BCG Matrix

BCG Matrix 1. Stars (=high growth, high market share) Nirala UHT and SWEETS are the most well known and running products of Nirala Pri vate Limited in the market. They give the best production and they have the most sales over the other products 2. Question Marks (= high growth, low market share) Nirala SWEETS and Nirala SNACKS are in the category of question marks because th ey have low market share but have high growth specially (sweets). After the prod uction and sale of UHT sweets and snacks give the advantage to the Nirala Privat e Limited.

3. Cash Cows (=low growth, high market share) Nirala BEVERAGES are in the category of cash cows. They have less production and fewer sales in the market because the competitors of Nirala BEVERAGES are more and it is not well known in the market. 4. Dogs (=low growth, low market share) Nirala RESTAURANTS are in the category of dogs. They are not much published and are not well known among public because people prefer the well known RESTAURANTS but Nirala is working hard on their RESTAURANTS.

Product Life Cycle The Product Life Cycle model can help analyzing Product and Industry Maturity St ages. Product Life Cy cle Industry Maturity Stages

Product life Cycle Any Business is constantly seeking ways to grow future cash flows by maximizing revenue from the sale of products and services. Cash Flow allows a company to ma intain viability, invest in new product development and improve its workforce; a ll in an effort to acquire additional market share and become a leader in its re spective industry. A consistent and sustainable cash flow (revenue) stream from product sales is key to any long-term investment, and the best way to attain a s table revenue stream is a Cash Cow product, leading products that command a larg e market share in mature markets. Also, product life cycles are becoming shorter and shorter and many products in mature industries are revitalized by product differentiation and market segmenta tion. Organizations increasingly reassess product life cycle costs and revenues as the time available to sell a product and recover the investment in it shrink. Even as product life cycles shrink, the operating life of many products is leng thening. For example, the operating life of some durable goods, such as automobi les and appliances, has increased substantially. This leads the companies that p roduce these products to take their market life and service life into account wh en planning. Increasingly, companies are attempting to optimize life cycle reven ue and profits through the consideration of product warranties, spare parts, and the ability to upgrade existing products.

4 Products of Organization There are a lot of products of Nirala private limited but we are only describing four of them: 1. Mithai 2. Snacks 3. Dairy 4. Beverages

Mithai It all began in 1948 when the entrepreneurial Ustaad Taj Din migrated from Amrit sar, India and started a breakfast joint in Mewa Mandi of Lahore. The uniqueness of the taste offered at the joint made it so popular that Taj Din soon decided to venture into Mithai as well, and opened a shop on Fleming Road in Lahore. The mithai tasted so different that he chose to call it Nirala Today, over half a c entury after; the Nirala name has come a long way. Having won the trust and admi ration of millions of customers across the nation, Nirala has also gone internat ional with 2 shops in Dubai and Sharjah. Nirala Sweets is now all set to launch its operations in North America and UK soon. Today, Taj Din s family has evolved the business into an ever growing empire. Inducting experienced professionals i n the team, Nirala has grown from a small Mithai vendor to 37 outlets in the cou ntry and 2 in the UAE. Nirala Sweets proudly offers more than a hundred varietie s of Mithai to satisfy any taste. Our belief in nothing but the best ensures t hat every experience with Nirala Sweets is as sweet and tasty as ever and that quality is never compromised. Nirala Sweets is not just a name. It is a traditi on, a trust and an integral part of your joyful memories. Regular Mithai Special Mithai Sugar-free Mithai Cold Range Complete Range

Snacks Our saltish range is one of the best and can be had with a cup of tea, coffee or a refreshing drink. An ideal snack prepared in natural oil to invigorate you an d provide utmost fulfillment, our snacks range consists of Chips, Dal Masoor, Da l Safaid, Mongra, Namek Paray, Samosay (Potato and Chicken) and Sawaian, and are available across Pakistan from Nirala outlets as well as leading retail stores and supermarkets. Nirala Snipz Nirala Snipz Torpedoz Nirala Khataees Nirala Pheonian Nirala Samosa

Dairy An integrated milk & milk powder processing plant has been set up at Tandlianwal a, near Faisalabad, under the name of Nirala Dairy (Private) Limited. Nirala Doo dh, the UHT packaged milk of the Company was launched in June 2005 and is now th e favourite brand in many households. This is due to the strict quality measures that the Company religiously adheres to. Nirala Desi Ghee (Butter Oil) was laun ched earlier and is leading the market in its category due to is superior qualit y and taste. Many more products in the dairy range are being developed and will be launched shortly. Nirala Doodh Nirala Cream Desi Ghee

Beverages At Nirala, we believe in consistent expansion of our product range as per the ex pectations of the modern consumer. Our beverages line is yet another addition to the wide range of products relished by our prestigious consumers. Rabri Milk: Traditional, cool and refreshing Lahori milk drink has been developed by Nirala Sweets to provide our valued consumers with yet another product they can savor. Enjoy the chilled, energetic and nourishing Rabri milk available at all Nirala S weets outlets throughout the year. With low fats and a smooth-as-silk texture, o ur Rabri Milk is lighter on the stomach and is the ideal drink to refresh you on hot and humid afternoons. Bouncer: Niralas juice by the name of Bouncer is an exciting treat, yet nourishing and nat urally fruitful. It is becoming fairly popular especially amongst kids because o f its refreshing & energizing flavor. It is packed in a 6-layered Tetra Pack bri ck aseptic packaging. Nirala Pani: Living up to our legacy of invincible quality, we bring for you Nirala Pani, to refresh you anytime, any where.

Future Products Company has aggressive plans to launch value added products. The dispensation co mpetence of the products is relatively equivalent to large firms. Nirala will so on launch the consumer sale of following products. Powder Milk Nirala Butter Nirala Yogurt Nirala Swaiaan Future Plans of Nirala Sweets

FUTURE PLANS To promote Nirala diaries by offering its customers finest quality of UHT milk T o use the recognition to improve its operations. The company plans to expand nat ionality with a wider presence in Pakistan as well as to expand its organization s in the Europe and United States. They have planned to promote different produc ts of nirala by offering free gifts to its customers with some products

Porter 5 Forces Analysis Five Forces Analysis helps the marketer to contrast a competitive environment. I t has similarities with other tools for environmental audit, such as PEST analys is, but tends to focus on the single, stand alone, business or SBU (Strategic Bu siness Unit) rather than a single product or range of products. For example, Del l would analyze the market for Business Computers i.e. one of its SBUs. Five for ces analysis looks at five key areas namely the threat of entry, the power of bu yers, the power of suppliers, the threat of substitutes, and competitive rivalry . The Porter 5 forces analysis is a framework for industry analysis and business strategy development developed by Michael Porter in 1979. It uses concepts deve loped in Industrial Organization (IO) economics to derive 5 forces that determin e the competitive intensity and therefore attractiveness of a market. Porter ref erred to these forces as the microenvironment, to contrast it with the more gene ral term macro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace. The Porters 5 Forces tool is a simple but powerful tool for understanding where power lies in a business situation. This is useful, because it helps you understand both th e strength of your current competitive position, and the strength of a position youre looking to move into. With a clear understanding of where power lies, you can take fair advantage of a Situation of strength, improve a situation of weakness, and avoid taking wrong Steps. This makes it an important part of your planning toolkit. Conventionally, the tool is used to identify whether new products, services or businesses have the potential to be profitable. However it can be very illuminating when used to understand the balance of power in other situations too.

Porter 5 forces

Five Forces Four forces -- bargaining power of customers, the bargaining power of suppliers, the threat of new entrants, and the threat of substitute products -- combined w ith other variables to influence a fifth force, the level of competition in an i ndustry. Each of these forces has several determinants: The threat of entry: Economies of scale e.g. the benefits associated with bulk purchasing. The high o r low cost of entry e.g. how much wills it cost for the latest technology? Ease of access to distribution channels e.g. Do our competitors have the distribution channels sewn up? Cost advantages not related to the size of the company e.g. p ersonal contacts or knowledge that larger companies do not own or learning curve effects. Will competitors retaliate? Government action e.g. will new laws be in troduced that will weaken our competitive position? How important is differentia tion? e.g. The Champagne brand cannot be copied. This desensitizes the influence of the environment. The power of buyers: This is high where there a few, large players in a market e.g. the large grocery chains. If there are a large number of undifferentiated, small suppliers e.g. s mall farming businesses supplying the large grocery chains? The cost of switchin g between suppliers is low e.g. from one fleet supplier of trucks to another. The power of suppliers: The power of suppliers tends to be a reversal of the power of buyers. Where the switching costs are high e.g. switching from one software supplier to another. P ower is high where the brand is powerful e.g. Cadillac, Pizza Hut, Microsoft. Th ere is a possibility of the supplier integrating forward e.g. Brewers buying bar s. Customers are fragmented (not in clusters) so that they have little bargainin g power e.g. Gas/Petrol stations in remote places.

The threat of substitutes: Where there is product-for-product substitution e.g. email for fax where there i s substitution of need e.g. better toothpaste reduces the need for dentists. Whe re there is generic substitution (competing for the currency in your pocket) e.g . Video suppliers compete with travel companies. We could always do without e.g. cigarettes. Competitive Rivalry This is most likely to be high where entry is likely; there is the threat of sub stitute products, and suppliers and buyers in the market attempt to control. Thi s is why it is always seen in the center of the diagram. Number of competitors R ate of industry growth Intermittent industry overcapacity Exit barriers Diversit y of competitors Informational complexity and asymmetry Brand equity Fixed cost allocation per value added Level of advertising expense

Porter 5 Forces Analysis

S.W.O.T Analysis S W O T = = = = Strengths Weaknesses Opportunities Threats SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT sta nds for strengths, weaknesses, opportunities and threats. Strengths and weakness es are internal factors. Opportunities and thr3eats are external factors. SWOT A nalysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It i nvolves specifying the objective of the business venture or project and identify ing the internal and external factors that are favorable and unfavorable to achi eving that objective The SWOT analysis is an extremely useful tool for understan ding and decisionmaking for all sorts of situations in business and organization s. SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. Inf ormation about the origins and inventors of SWOT analysis is below. The SWOT ana lysis headings provide a good framework for reviewing strategy, position and dir ection of a company or business proposition, or any other idea. Completing a SWO T analysis is very simple, and is a good subject for workshop sessions. SWOT ana lysis also works well in brainstorming meetings. Use SWOT analysis for business planning, strategic planning, competitor evaluation, marketing, business and pro duct development and research reports.

S.W.O.T Analysis

In SWOT, strengths and weaknesses are internal factors. Strength could be: Your specialist marketing expertise. A new, innovative product or service. Locat ion of your business. Quality processes and procedures. Any other aspect of your business that adds value to your product or service. A weakness could be: Lack of marketing expertise. Undifferentiated products or services (i.e. in rela tion to your competitors). Location of your business. Poor quality goods or serv ices. Damaged reputation. In SWOT, opportunities and threats are external factors. An opportunity could be : A developing market such as the Internet. Mergers, joint ventures or strategic a lliances. Moving into new market segments that offer improved profits. A new int ernational market. A market vacated by an ineffective competitor. A Threat could be: A new competitor in your home market. Price wars with competitors. A competitor has a new, innovative product or service. Competitors have superior access to ch annels of distribution. Taxation is introduced on your product or service.

S.W.O.T Analysis of an Organization Strenghts: Strong Brand Name. Due to mass production the cost is reduced and it helps ma ain the financials on smooth flow. Company has their own setup/ it is the family business resulting into independent decision making. It enjoys approximately 30 % market share, which is greater than any other company in this business. It has ISO 9001 quality assurance certificates in sweets lines or divisions. Its brand is widely acceptable as a symbol of quality. Company owned delivery vans for sp ecial occasions.

Weaknesses: Cannot take small orders with reference to home delivery. NDPL (Nirala Diar Ltd.) & NSPL (Nirala Snacks Pvt Ltd.) still dont have dedicated structure of man agement. Heavily financed by financial institutions. Lack of inter-departmental coordinations. The employee rewards/promotion process is inadequate. The selling price is out of the reach of consumers from low income group where the sweet co nsumption is relatively higher. No retention policy for the outstanding performe rs. They have not promoted their Restaurant even people are not aware; where the restaurant is located and to whom (Nirala) it belongs.

Opportunities: Being one of the best mathai manufactures in Asia, the company has great opportu nity in the export market in Middle East, Canada, UK and USA. NIRALA being the l eader is far ahead from the competitors, there is no rival company with in the c ountry that can match the market share and production capacity. By increasing th e number of production facilities the sales volumes can be enhanced. NIRALA is going into diversification by establishing restaurants, caf, diary busi ness, snacks, etc which will improve their business turnover and profitability. Threats: Primary Competitors in sweet business like Gourmet bakers, Fazal Sweets, and sec ondary Shereen Mahal in addition of their growing branches. Products of other ba keries and Methai Shops are cheap. Taxation in advertisement is increasing the m arketing cost hence, reducing the profits. Strong and established competition in Milk industry like CDL Foods and Nestle. In snacks they would be facing antagon ism by companies like Tripple Emm and Saigol Foods Ltd.

Conclusion Research is the key device to sort out that what problems an organization is fac ing in the existing market situations and to suggest the solution to these probl ems this research is conducted about the management structure of Nirala (pvt) Lt d, one of the most progressing company in Pakistan, which has experienced tremen dous growth over the period of past ten years. Nirala is a distinguished brand i n Pakistan. NIRALA claims that we dont compromise on quality, and it is proved to b e right, that is why it is growing day by day.