ACKNOWLEDEMENT

We would like to thank our course instructor Prof. Dr Khawaja Amjad Saeed For guiding and encouraging us in every step of making of this project. Has his encouragement been not there we would never have been able to complete this project? We would also like to thank the management of Pak Electron Ltd (PEL)

Mission Statement Vision Statement

Journey towards excellence

HISTORY & INTRODUCTION OF PEL

Pak Elektron Limited (PEL) is the flag bearer of the Saigol Group of Companies. Pak electron ltd is the pioneer manufacture of electrical goods. It was establish in 1956 in t e c hn i c a l c ol l a b o r a t i o n wi t h M/ S A E G o f Ge r m a n y . In Oc t o b e r 1 97 8 t he gr o u p wa s bought by saigal group of industries . Since its inception, the company has always been contribution towards the advancements and development of the engineering sector in Pakistan by producing hundreds of engineers, skilled workers and technicians through its apprenticeship schemes and training program. The products manufactured by PEL have always been of high standard and the name'PEL' is synonymous with QUALITY all over Pakistan. Since its inception, the company has been working for the advancement and development of engineering know-how in P a k i s t a n . Th e c o m p a n y h as pr o du ce d hu n dr e ds o f en gi n e e r s , s ki l l e d wo r ke r s a n d technicians through its apprenticeship schemes & training programs. P E L h a s be en c on t i n u o u s l y a dd i n g ne w p r o d u c t s t o i t s r a n g e . A s a r e s u l t , P E L h as registered a significant increase in its sales volume, during the last ten year

PEL PROFILE
Pak Elektron Limited (PEL) is the pioneer manufacturer of electrical goods in Pakistan. It was established in 1956 in technical collaboration with M/s AEG of Germany. In October 1978, the company was bought by the Saigol Group of Companies. Since its inception, the company has always been contributing towards the advancement and development of the engineering sector in Pakistan by introducing a range of quality home appliances and by producing hundreds of engineers, skilled workers and technicians through its apprenticeship schemes and training programmers. The company comprises of two divisions: Appliances Division Power Division

Group Profile
In 1948, the Saigols Migrated From Calcutta Initiated Their Business In Lyallpur (Later Named Faisalabad)

 Under The Banner Of Kohinoor Industries Ltd. Kohinoor Textile Mills. Pak Elektron Ltd. Kohinoor Power Company Ltd. Kohinoor Energy Ltd. Kohinoor Motor Works Ltd. Saigol Computer Pvt. Ltd. Saritow Spinning Mills & The Azam Textile Mills

Organizational Hierarchy
Chairman, Managing director, General Manager, senior manager, Sales manager, Production manager, HR Manager ,Marketing manager, Finance manager ,Distribution manager ,Consumer marketing department ,Credit control manager ,Staff Trading department, Customer service department.

SBU s hierarchy
Refrigerator \Split units Deep freezers Power division Transformers Switch gears Energy meter Kiosks Compacts stations

Appliance division:

Organizational Departments
Finance department Marketing department Sales department Trading department Consumer marketing department Credit control department Customer service department Human resource management department Distributions department Quality control department Department working Finance department:

Human resource department:

Human resource department of the Pel Company is very much conscious of hiring the employees for the company. The standards he set for hiring the new people. HRM department of the company mainly makes the external recruitment. T h i s i s u s u a l l y d o n e t h r o u g h n e ws p a p e r we b s i t es e xt r a. HR M d e p a r t m e n t a l s o s e t salaries, packages and TA, DA allowances.

Marketing department:
Marketing department is the back bone of any firm.marketing department generally analyzes the needs and wants of the customer. Then this department tells about the customer needs to the company which in tern launches the products according to the needs of the customers. Marketing department is responsible for making strong advertisement for the products

Department working Finance department:

Finance department provide money for the working of the organization. Pel Companys department borrows loan mainly from national bank and settle terms and conditioned of the interest and time period of returning the load with it. When the sale is made the company firstly returns the loan with interest. Sales department: Sales department is responsible for making sales of the product.This department generally takes orders from the market, gives information to the credit30

.Customer service center department: This department is very much important for the company because its makes the good will of the company. Its provide services to the customers who have their clams and makes the customer loyal. Its also gives the feed back to the head office to provide the required spare parts.

Consumer marketing department:

C o n s u m e r m a r k e t i n g d e p a r t m e n t g i v e s packages to the person who has low income to attract them to purchase their

products. They have their own area offices. This department wor k s u n d e r c r e d i t s c o n t r o l departments. Control department. Area credit control department gives information to the head office. He a d o f f i c e d i s c u s s s i t u at i o n wi t h t h e fi na n c e de pa r t m e nt a n d T h e n a t l a s t f i n a n c e department gives authority to area credit control department to settle term and conditions with dealers.

Customer service center department:

This department is very much important for the company because its makes the good will of the company. Its provide services to the customers who have their clams and makes the customer loyal. Its also gives the feed back to the head office to provide the required spare parts.

Consumer marketing department:

C o n s u m e r m a r k e t i n g d e p a r t m e n t g i v e s packages to the person who has low income to attract them to purchase their products.T h e y h a v e t h e i r o w n a r e a o f f i c e s . T h i s d e p a r t m e n t w o r k s u n d e r c r e d i t s c o n t r o l departments.

Trading department:
This department is involved for importing products. This department imports the required products according to the demand of the customer such as split unit. This department is controlled by its head, which works directly under the head offce.This department sends terms and condition of trade to the head office and finance department for the financing.

Production department:

P r o d u c t i o n d e p a r t m e n t i s i n v ol ve d on l y pr o du ci n g t he produc ts. This department purchases raw material from the suppliers. Then passes the raw material from various dyes machines. Modeling machines etcfrom the assembly line according to the required shapes of the products.

Distribution department:
T h i s d e p a r t m e n t d i s t r i b u t e s t he f i n al pr o du ct s fr o m t h e p r o d uction department to the dealers and then ultimately to t h e c o n s u m e r s . T h i s department only responsible for distributing the products according to the requirement and demand of the product

Managerial Functions Planning

Refrigerator: Planning is very much important function of the management.PELcompany makes the planning regarding refrigerator by observing the market. How much company can sales in a particular segments there any chance of growth is also in the planning of the company refrigerator. Split Unit: The company planning regarding split unit firstly is the observation of the market. Then after observation how much to import the split units. Finance and trading department also give suggestion for planning regarding split unit .Then set their plans according to the requirement. Refrigerator: The organizing regarding refrigerator how to make availability of r e f r i g e r a t o r a s s u r e d . T a ki n g i n t he a cc ou n t t h e po l i c y r e ga r d i n g r e f r i g e r a t o r o f t h e company how much to produce and when to produce etcAlmost all the department are involved in organizing and also how much margin to give to the dealers. Split Unit: While organizing the company takes into account the last year sales andhow much to sale in a particular area. Mainly quality control, finance department and trading department are involved in organizing for how much to import, when to import, where to import etc

Leading
Refrigerator: Head office mainly leads all departments regarding refrigerator .Allthe sub ordinate department officers lead the related department and employees and loyalto the head office for their working. Their is check and balance situation for everydepartment. Split Unit: Head office mainly leads all the related department of the split units.Trading department is mainly the leader in split unit case for importing it and directreliable to the head office. For leading it also give its requirement to its head office for finance and for the quality control of the product. Refrigerator: Controlling is the main functions after making the pervious steps. Managers of the each department control its own department working and are liable to the managing director. There is check and balance situation. In controlling, monthly and annual basis analysis are made. How much sale is made and for the betterment of the product research and development department then do its job.

Split Unit: In controlling of the split units, trading department mainly control the import of the splits units. it checks the quantity of the u n i t s a n d q u a l i t y c o n t r o l department checks the quality of the split units before launching it in the market.

Environmental Scanning
is the monitoring, evaluating and discriminating of i n f o r m a t i o n f r o m t h e e xt e r n al a nd i nt er n al en v i r o n m e n t t o ke e p p e o p l e wi t h i n t he corporation. The company scans the environment in the following way:

General Forces.: It includes:

Political and legal forces: PEL Company is very much conscious about the political and legal environment of the country. The company changes its labor wages which is registered when ever a govt. changes the labor laws Technological forces: PEL Company tries to adopt the future technology for using in the product. They always keep in view the technology for increasing the quality of the product for their customers. On the basis of modern technology, company is the market leader regarding the appliances. Economic forces: Economic forces means change in disposable Income, flections in the market ,inflation ,change in rate of interest etcCompany always keep in mind the economic conditions of the country and sets its prices accordingly.

Social cultural forces:

It includes environmental concerns, work life quality a t t i t u d e s a n d a l s o wo r k fo r c e d i ve r s i t y e t c P E L C om p a n y ke e p s i n v i e w t h e s o c i a l culture changes of the country and sets its target accordingly Task Environment: It Includes: Customers:

Pel Company customers include various government organization such aswapda and Karachi power company regarding power divisions.PEL Company has also an internal and external customers. Internal customers are those who are the employees of the company which dont makes big affect on the sales. External customers are those which are the outsides the company such as general pubic except employees. Suppliers: PEL Company has its suppliers regarding its appliance division are Abdullah and Heartz, Star enterprises, Plas codes system. Etcand have its suppliers regarding split unit from china. Competitors: PEL Company has its competitors like dawlance, Waves, LG, Haier etc Pel company make close analysis of its competitors to understand its strategies and to overcomes its deficiencies. Public Pressure Groups: T h e r e i s n o p u b l i c p r e s s u r e gr o u p whi c h a f f ec t t he working of the company because PEL Company makes product by viewing all its aspects which dont affect the societal environment of the economy

Pest Analysis
Political Political or legal forces means law and order situation in the country. Countrys policies for the trading companies. Political and legal situation regarding PEL Company is stated as Refrigerator: Registered labors Increase wages when govt. changes Labour policies. No political affects Splits Units:

 No pressure from political parties

Economical Mean economic condition of the country such as chang e in dispose bale income, f l u c t u a t i o n i n ma r ket , i nf l a t i o n r a t e e t c . . . C o mp a n y s e t s t h e p r i c e s a c c o r d i n g t o t he economic situation of Pakistan , Refrigerator: Middle and upper class G e n e r a l l y i n i n f l a t i o n s i t u a t i o n b u y i n g p o w e r decreases Reduction of prices Reduce of quality

Splits Units: Cost of product is main thing Social Refrigerator Employees Work In Shifts. No Women in Work Force. Employees are well settled according to the culture Split Unit Socially no affect

Technological
Refrigerator Technology Affects The Working OF A Company. Company Adopts Modern Technology Receives Feedback. Split Unit Use of modern Of Technology Quality Checking

Potters's5 Models
Bargaining Power of Supplier: Bargaining power of PEL Company's suppliers is comparatively low due to the large number of supplier such as Abdullah andheartz ,Plas Codes system etc Bargaining Power of buyer: PEL Company have high bargaining power as compare to suppliers due to presence of many suppliers. Threat Of New Entrant: There is always a threat of new entrant. PELCompany is facing a threat from foreign a local companys. Existing firms:

PEL Competitors like Dawlance,Waves and LG can reduce its appliances products prices. Threat Of Substitute Product: Da w l a n c e , W a v e s , L G e t c c a n pr o du c e substitute products at low rates which is threat for the company

PODUCT PRICE PLACE PROMOTION Product Product is a thing that satisfies customer demands. Pel Company is very much conscious to make the products which satisfy the customer needs.63

Company makes the product: According to the needs of the customer. What kind of size and model they want. What kind of features and functions they want. What kind of packaging they want. Price Price is very much important because its attracts the customer in first look.Pel companyis very much conscious about price. Company sets the prices of the products by Analyzing the market situation. Actual cost of the product

Marketing expenses of the product. Profit margin of the company. Comparison to other home appliances. Setting deal with dealers Place Place plays a very important role for any companys product. If the product is not rightly placed, company will suffer from loss. Company places its product: According to the requirement of customer and market. In more populated area of the city. Against competitors products. More convenient to the customers. Promotion On c e c o mp a n y ma k e s t he pr od u c t , i t ne ed s pr o m o t i o n fo r t h e a wa r e n e s s o f t h e c u s t o m er s . Un l es s a c om p an y wi l l n o t a r r a n g e fo r p r o m o t i o n a pr o du ct s ca n t succeed.Pel Company promotes its product through:

B i l l N r e

b o a r d s I n t e r n e t w s p a B r u s h s Television

p e

e r

Suggestions & Recommendations After the visit of the PEL Company and check the complete management functions we suggested to the PEL Company to do1 . Mo r e a g g r e s s i ve a dve r t i s e m en t 2.To manufacture the split units in their own company