Imran Final Report Pepsi

7/30/2019 Imran Final Report Pepsi

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INTERNSHIP REPORT

ON

Shamim & Company Pvt Ltd.,

Submitted To:

Sir. Saeed Ahmad

Submitted By:

MUHAMMAD IMRAN

Roll No. 231

MBA (HRM)Session 2010-14

UNIVERSITY OF EDUCATION, LAHORE

(MULTAN CAMPUS)

Internship Report Shamim & Company Pvt Ltd., 1


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PREFACE

To dream anything that you want to dream that's the beauty of the human

mind. To do anything you want to do that is the strength of the human will.

To trust yourself to test your limits. That is courage to succeed. This report

has widely increased my insight knowledge. Practical experience is very

much necessary in order to make yourself master in any field of life. The

knowledge that the students of MBA (HRM) receive from their distinctive

teachers is solely theoretical as well as practical based. Some Prof. gave us

some assignments to do some practical work. Practical work plays a very

important role in any field that is adopted by a student.



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DEDICATION

TO MY BELOVED ALLAH

& MY PARENTS

Who always wishing and praying for

My success in every sphere of life.

I pray to Almighty Allah to

Enable me to serve them

So well and kindly as they did

In my life especially in my childhood



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ACKNOWLEDGEMENT

All prays goes to Allah Almighty who has given me courage and

confidence to complete this gigantic task. But with the noble passion of hard

work, nothing remains difficult. To write an acknowledgement, after the

completion of an enormous task has always been very enthusiastic for me

because it's the best source to thank all those whose support enable me to

complete this project. After thanking God I will thank to my parents &

teachers who prayed for me and without their support I might not be able to

complete this internship. Special thank to my supervisor Mr. SAEED

AHMAD who helped me and encourage me a lot during my MBA.

I want to thank for all those personalities, who have been a continuous

source of guidance during the report. I want to say thanks to all the

employees of Shamim & Co. Pvt Ltd., Their attitude towards me was really

very positive and appreciable. I want to acknowledge them with thanks for

their help and guidance on each and every step. I made many mistakes as I

had never been confronted with the business world but they never minded.

They treated mc as their younger sister and forgave all my inaccuracies. But

In this regard, I particularly want to thank those personalities who have been

the continuous source of guidance throughout my internship.

Muhammad Imran



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Table of Contents

Chapter 1

1.1 Executive summary 07

1.2 Objective of Studying the Organization 09

1.3 OVERVIEW OF THE ORGANIZATION 10

1.4 Mission Statement 12

1.5 Vision Statement 13

1.6 Objective 14

1.7 COMPANY QUALITY OBJECTIVES 17

1.8 stock keeping units (S.K.U) 19

1.9 Unique features of Shamim & Co. Multan 20

1.10 Organizational Structure: 21

Chapter 2

2.1 DEPARTMENTS OF SHAMIM & COMPANY 23

2.1.1 Research & MIS Department 23

2.1.2 Finance Department 23

2.2.3 Sales & Marketing Department 24

2.2.4 Supply Chain Department 24

2.2.5 Shipping Department 242.2.6 Supply chain Department 24

2.2 Delivery system of the Company 25

2.3 Major and Minor Competitors 25

Chapter 3

3. HUMAN RESOURCE DEPARTMENT 26

3.1 General Discussion on HR Department 27

3.2 JOB ANALYSIS 28

Factors and functions of Human Resource Department Involve 29

Human Resource Planning & Forecasting 30

Recruitment 30

Selection 30

Orientation & Training 33



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Performance Appraisal & Management 35

Compensation & Benefits 36

3.5 Structure of Human Resource Management: 40

3.6 Human Resource Planning: 413.7 Human Resource Planning (HRP) Process: 41

3.8 Human Resource Management Forecasting: 42

3.10 EMPLOYMENT AGENCY 45

3.12 EMPLOYEE DEVELOPMENT 47

3.14 PERFORMANCE MANAGEMENT 49

3.15 EMPLOYEE COMPENSATION AND BENEFITS 50

3.16 ORGANIZATION CAREER MANAGEMENT 53

3.17 JOBS CHANGES WITHIN THE ORGANIZATION 54

3.18 SEPARATION: 56

Chapter 4

4.1 FINANCIAL ANALYSIS 59

4.1.1 LIQUIDITY RATIOS: 59

4.1.2 Current Ratios 60

4.1.3 ACID- TEST RATIO 61

4.1.4 TIME EARNED INTEREST 62

4.1.5 DEBT RATIOS: 63

4.1.6 D/E RATIO: 64

4.1.7 ASSET MANAGEMENT: 65

4.1.8 TOTAL ASSET TURNOVER: 66

4.1.9 INVENTORY TURNOVER: 67

4.1.10 PROFITABILITY RATIOS: 68

Chapter 5

5.1 SWOT ANALYSIS 71

5.2 PEST ANALYSIS 75

5.3 SUGGESTIONS & RECOMMENATIONS 76

5.4 SLOGANS THROUGH TIME 78

5.5 REFERENCES: 81

5.6 ANNEXURE 82



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1.1 Executive Summary

According to Richard D. Brown and George J. Petrol (1986), the history of the Beverages

industry start from 1886, when Atlanta chemist Doe Pemberton developed a reddish -

brown syrup with a smidgen of cocaine (for medicinal purposes) to compete with the

many patent medicines and cure - all elixirs of that time. His company recommended it

for the relief of hangovers headaches, menstrual pains, and a host of other problem. One

warm summer day Pemberton took some syrup down to will is venerable at Jacob's Drug

Store in Atlanta. An ounce of the mixture was put into a glass, which was then filled with

water and ice, creating the first Cola.

The Beverage industry has undergone a revolutionary change during the last couple of

decades. The form of processing and the machinery used these days has developed and is

very sophisticated. Automatic and computerized plants have been installed in the industry

thus making it an industry which is dealing in million of gallons of beverages yearly.

Pakistan Beverages, the bottlers for Pepsi, and Coke bottlers National Beverages claim

that their primary goal is not to undermine the competition but to expand the market as a

whole. Market expansion, in fact, seems to be the buzzword these days in the beverage

industry. Analysts believe the potential market in Pakistan is though to be enormous

because the country's per capita consumption is as low as 14 bottles per year. Compare

this with a 120 bottles per year in the Philippines, and the scope for expansion becomes

more than obvious.

Pepsi Cola is among the most successful consumer product companies in the world with

annual revenues of $24 billion and approximately 140,000 employees. Some of Pepsi

Cola's brand names are nearly 100 years old but the corporation remains relatively young.

Pepsi Cola Inc. was founded in 1965 through the merger of Pepsi-Cola Company and

Frito-Lay Inc. Pepsi Cola divisions operate in two major domestic and international

businesses: beverages and snack foods.



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Pepsi Cola's brand names are some of the best known and most respected in the world

and our restaurants are named as favorites by millions of people. Pepsi Cola has achieved

a continuing record of growth. This record is based on high standards of performance,

distinctive competitive strategies which are superbly executed, the personal and

professional integrity of our people, business practices and products.

Shamim & Co was established in 1967 under a franchise agreement with 7-UP to bottle

7-Up Soft Drinks. In 1973 Shamim & Co. started to bottle Pepsi Cola as well. This was

the first Pepsi franchise in Pakistan. Mr. Allah Nawaz Khan Tareen was the founder of

the franchise and also the first Managing Director. It is a great honor of "Shamim &

Company" that it was Second Beverage Company of Pakistan that time and currently one

of most famous Beverages Company of South Asia. Shamim & Co. products are

manufactured under strict quality control and conform to international quality standards

set by Pepsi Cola International. Shamim & Co. bottles over 500 million drinks per annum

which have earned Shamim & Co. the distinguished status of being classified as "Mega

Plant" in the PEPSI system.

Shamim and Company being the largest territory in Pakistan covers the following areas.

Multan A Zone, Multan B Zone, Multan C Zone, Multan District, Khanewal, Mailsi,

Vehari, Muzafar Garh, Leiah, D.G Khan, Sahiwal, Okara,Bahawal Pur, Ahamad Pur,

Bahawal Nagar, Haroon Abad, Rahim Yar Khan.



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1.2 Objective of Studying the Organization

Shamim & Co. has been working in the field of Beverage in Pakistan. The purpose of

studying the organization is to have practical demonstration over business principles

especially to know the Human Recourse Management department. The real objectives of

studying the organization are based on following facts;

I have a comprehensive knowledge about different section of Human

Resource Management department.

I have a great opportunity to make critical analysis of this theoretical concept

relating to practical experience.

Practical study of the training and development and other activities of this

department.

Understanding / Comprehension of the role played by a Human Resource

Management department in any organization.

Learn interaction of a beverage company and comparing with other firms of

the same industry to make the compressive knowledge of Human Resource

functions and activities

Furthermore it was also my aim to update the current information about

organization.



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1.3 OVERVIEW OF THE ORGANIZATION

1.3.1 Brief History of Shamim & Co. (Pvt) Ltd Multan

Shamim & Co was established in 1967 under a franchise agreement with 7-UP to

bottle 7-Up Soft Drinks. In 1973 Shamim & Co. started to bottle Pepsi Cola as

well. This was the first Pepsi franchise in Pakistan. Mr. Allah Nawaz Khan Tareen

was the founder of the franchise and also the first Managing Director. It is a great

honor of "Shamim & Company" that it was Second Beverage Company of

Pakistan that time and currently one of most famous Beverages Company of SouthAsia. Shamim & Co. products are manufactured under strict quality control and

conform to international quality standards set by Pepsi Cola International. Shamim

& Co. bottles over 500 million drinks per annum which have earned Shamim &

Co. the distinguished status of being classified as "Mega Plant" in the PEPSI

system.

There are 9 franchise of Pepsi Cola international in Pakistan, Shamim & co. is one

of them that is situated at District jail road Multan. Other franchise of Pepsi Cola

are Peshawar and Quetta that are described above. The company's 1st production

was in 1967, that time the brand offered was 7-up 270 ml that is why it is also

known as 7-up factory. Shamim & Co. primarily deals in CSD's (Carbonated Soft

Drinks). Pepsi Cola international franchise Shamim & company covers 17 districts

& 134 stations. Shamim & Co. Multan has very committed staff and this is the

reason that Shamim & Co. Multan is currently enjoying 80% market share in the

franchise which is the highest for any Pepsi Cola Franchise in the world. Shamim

& Co. was declared "Bottler of the Year" in the region for outstanding

performance.



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Company is currently passing through the phase of hiring new experienced '&

more competent sales staff in order to increase the share to 90% and above. As far

as distribution is concerned company has a very well-established distribution

network covering whole of the franchise areas.



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1.4 Mission Statement

Our mission is to be the world premier consumer products company focused on

convince beverages. We seek to produce healthy financial rewards to investors as

we provide opportunities for growth and enrichment to our employees, our

business partners and the communities in which we operate. And in everything we

do, we strive to act with honesty, fairness and integrity.



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1.5 Vision Statement

Their vision statement is "We were number 1, we are number 1, and we will be

number I". Our collective success depends on our effective strategies, the

organization's needs and the needs of our employees and their families like

enhanced career opportunities, Education and development, Medical, dental and

prescription coverage Flexible spending accounts, Retirement, Life insurance,

Vacation time, Disability, Tuition reimbursement, Scholarships, matching

charitable donations.



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1.6 Objective

The ultimate objectives of our business strategy are to increase volume, expand

our share of worldwide nonalcoholic ready-to-drink beverage sales and maximize

our Long-term cash flows.

Pepsi-Cola International has keen focus on enhancing value for the customers and

helping them grow their beverage businesses. We strive to understand customer's

needs and demands in order to increase their satisfaction level.

1.6.1 Nature and Profile of Shamim & Co.:

Shamim & Co. has an extensive network of Distributors and well-trained sales

staff to market and distribute the products in whole of the southern Punjab, a

territory that covers almost 150,000 Sq. k.m. Shamim & Co. caters the needs of

over twenty million people through more then 22000 outlets out of which 14,000

are exclusively Pepsi Cola retail outlets. We provide a complete business package

to our retailers including horizontal and vertical bottle coolers, point of purchase

advertising, cash credit, etc.



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1.6.2 Product Line of Shamim & Co.:

The first product of Shamim & Company was 7-up. But currently the Company is

offering:

Pepsi Cola

Diet Pepsi

7-up

Diet 7-up

Mirinda

Mountain Dew



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1.7 COMPANY QUALITY OBJECTIVES

Corporate objective of Shamim & Company is to continue to build a strong company

which provides value to its all stakeholders. Company will accomplish this mission

through its commitment to the following four key components.

1.7.1 CONSUMER FOCUS

Shamim & Company focus CPQ (Consumer Perception of Quality)

Benchmarking

Up-gradation of Quality Measurement System

Sensory & Appearance Testing

1.7.2 SUPPLIER APPROVAL

To strive for continuous improvement in the quality of Incoming Raw Materials and

Packaging by:

Vendor Certification Approval

1.7.3 PLANT AND TRADE

To upgrade technological capabilities by the acquisition of latest tools & technology

recommended by PCI to drive Quality Evolution:

Statistical Process Control

Standards, Methods and Manuals

Trade Age Management

Laboratory Validation & Up-gradation



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1.7.4 PEOPLE AND ORGANIZATION

To share ownership for Quality with everyone at all levels through:

Training

Process Ownership

Empowerment



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1.8 Stock keeping Units (S.K.U):

S.K.U is the different packings of the brands. Like if we take Pepsi as a brand, availabale

S.K.U are 250 ml standard, 1 litre glass, Buddy pack, Can 330ml, 1 litre pack, Half litre

pack etc. The available S.K.U of the company are 54.Further categories are as:

SSRB This stands for Single Serving Returnable Bottle (Regular)

We are offering Pepsi, Mirinda, 7-Up & Mountain Dew in this group.

LRB This stands for Liter Returnable Bottle this includes Pepsi, Mirinda &

7-Up. We are not offering Mountain Dew in this class.

Pet Bottle (1.5 Liter)

o This includes Pepsi, Mirinda & 7-Up. This group also does not have

Mountain Dew in their family.

o Here Diet Pepsi & 7-Up are also available to enlarge the range of group.

NRB This stand for Non Returnable Bottle. It can also be called as Deposable

o It has 300ml quantity. This group includes Pepsi, Mirinda, 7-Up, Diet

Pepsi & Diet 7-Up.

Cane Packing, we are offering cane packing of all that brands that are offered in

SSRB. Including Pepsi, Mirinda, 7-Up and Mountain Dew.



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1.9 Unique Features of Shamim & Co. Multan:

The Company has following distinguishing features:

Shamim & Company covers the largest area/territory among all Pepsi

franchises in Pakistan.

Shamim & Company has won quality awards at international level. Also

declared

It enjoys 80% market share which is the highest for any Pepsi Cola Franchise in

the world.



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1.10 Organizational Structure:

Managing Director, Mr Alamgir Khan Tareen

General Manager Sales & Marketing, Mr Amir Hameed

General Manager Technical, Mr Asmat ullah Baig

General Manager Finance, Mr Sohail Butt

Manager Sales Information System & Research (SIS), Mr. Kamran Ahsan

Manager HRD, Mr Ahmed Abdi

Manager Shipping, Mr Major Farooq



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2.1 DEPARTMENTS OF SHAMIM & COMPANY

There are seven main departments of Shamim & Company.

Sales & Marketing Department

Production Department

MIS Department

Research & SIS Department

Finance Department

Cash Department

Human Resource Department

2.1.1 Research & MIS Department

MIS department of Shamim & Co. is playing in this regard. The department is

working with a small setup & satisfying the information requirements of the

organization with a small staff and developed a setup, the department has

eliminated much work load, paper work and saved a lot previous time.

2.1.2 Finance Department

This is one of the most important departments of this organization. This

department made the financial plans of the organization, they analyze their

resources and then concise other reports and gives the whole budget the

organization can afford. Another job of this department is to make the complete

record all financial and non-financial transactions made inside as well as outside

the organization.



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2.1.3 Sales & Marketing Department

Sale and marketing is the most important department of any beverage company.

To maximize the sales and profit, this department should be proper planed and

managed.Shamim & Co. Pvt. has a very aggressive and hardworking Sales and marketing

department.

2.1.4 Human Resource Department

Human Resource Department is responsible for all activities regarding recruiting,

selecting, hiring, training, compensation etc. Human Resource Department ensures

that the job vacancies are filled by appropriate persons. Human Resource

Department deals with every matter regarding workforce

2.1.5 Shipping Department

Shipping is a very critical area for any beverage organization. It serves the role of

coordinator or middleman between production and sales. Ensuring appropriate

quantity and on time availability of empty & liquid stock is utmost important. Any

malfunction in empty receiving, storage, and supply to plants, liquid stock and

distribution directly affects sales. This is a complete chain or cycle and any weak

link, bottleneck or disturbances will slowdown the whole operations.

2.1.6 Supply Chain Department

This department proves to be back bone for the company. It performs various

functions that are:

Generates Inventory Reports

Policy making

Contacting with suppliers

Planning for future activities regarding inventory



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2.2 Delivery System of The Company

The company is following two types of delivery systems.

2.2.1: Direct Delivery System:

The Company spends its own resources to sell directly to the retailers. The company

uses its own distribution system.

2.2.2: Indirect delivery System:

Most usable system of NBC that is they sell to distributors and then distributors uses itsown resources to sell the products. The company sales products on low prices and also

commissions are there.

2.3Major and Minor Competitors:

Coca Cola

Gourmet Cola

Muree Beweray

Shandy Cola

Shezan

Red Bull

Kooler Cola

Boomer Cola Other Local Made.



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3. HUMAN RESOURCE

DEPARTMENT



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3.1 General Discussion on HR Department:

FIRM department plays a vital role in each organization. The department of

Human resource is working efficiently in the company from approximately 4

months. The basic functions of this department are

Job Analysis

Preparation and collection of applicants information

Recruiting

Selection

Placing

Specifying jobs and roles

Training

Evaluation

Feed Back

Career development

Out sourcing

Preventing violence in the workplace

Ensuring safety at the workplace

Transfer and promotions



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3.2 JOB ANALYSIS

Following steps should be taken by the SCL:

Step1: Obtain Documentary information such as procedure manuals and written

instruction.

Step 2: Ask about more general aspect such as the job purposes, the main activities.

Step 3: Ask the jobholders about the job.

Step 4: Observe the jobholders to see what they actually do.

Formulation of Job Specification and Job Description:

3.2.1 Job description

Human resource Division analyze each job and the it's required

Out comes. Job analysis is done by analyzing the past experience and emerging trends.

SCL holds documents about terms, duties, responsibilities, and specifications about each

job.

SCL clearly defined everything that the applicant face no difficulties for application to

see the criteria defined he lies are not.

3.2.2 Job specification

SCL also has well developed criteria for each job in term of the job specification. In all

the area of the jobs the pre- requisite for the job arc defined for example:

Qualification required for a job

Skill required for a job

Experience required for a job

Age Limit



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3.2.3 Factors and functions of Human Resource Department Involve:

Human Resource Planning & Forecasting

Recruitment

Selection

Orientation & Training

Performance Appraisal & Management

Compensation & Benefits

Career Development

Roles of the Human Resource Department include Strategic Role, Operational Role,

Administrative Role and employee's advocacy Role. Out of these roles only strategic and

operational role is exercised in SCL HR department, where as the administrative role is

exercised by the personal department.

3.2.3.1. Division of HR Department in SCL

The Human Resource department is divided in two Sections.

I. Team Tracking Department

II. The Personnel Department

Functions of Team Tracking Department include: (Strategic & Operational Role)

Planning & forecasting

Recruitment & selection

Orientation & training

Performance appraisals & management

Compensation & benefits



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Functions of Personnel Department include: (Administrative Role)

Retirement benefits

Liaison with govt. Agencies regarding legal matters

HRIS of permanent employees

Salary structure

Bonus schedule

Gratuity plans

Annual routine increments

Labor force management system

Planning of direct & indirect labor

Recruitment & Decruitment of Labor

Division of labor among different department

3.2.3.2. HR Planning & forecasting in SCL

HR Planning is the process by which managers ensure that they have the right number

and kinds of people in the right places, and at the right times, who are capable of

effectively and efficiently performing their tasks, It helps avoid sudden talent shortages

and surpluses resource planning.

Forecasting is the process of deciding what positions the firm will have to fill and how to

fill them.

Assessing Current Human Resources

Assessing Future Human Resource Needs (forecasting)

Developing Action plans to meet the HR needs

3.2.3.3. Recruitment & Selection in SCL

Recruitment is the process of seeking & attracting pool of people from Labour Force

Population to short listed applicant pool, out of which qualified candidates for job



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vacancies can be chosen. It is the process of locating, identifying, and attracting capable

applicants.

Identification of vacancies to be filled.

New Vacancy

Replacement Vacancy

Internal recruitment

By Promotion

By Transfers

External recruitment:

Job Posting in News Papers

Job Postings at employment sites such as www.Rozee.pk

Campus Recruiting (Job Fairs)

Company Own Data Bank

Physical Filling Record of Dropped Applicant C Vs. (External)

Company Employees Data Bank, HRIS (Internal)

Company Data Bank, HRIS (External)

References based applications which have been tested

Internship Candidate CVs

CVs from Previous Advertisements (not selected in past)

Internal Recruitment: is done by evaluating the current employees Data Base. Potential

candidates (employees) are short listed depending upon their skill, knowledge and

experience and then referred to concerned department heads for final interview. On

Successful Interviews candidates are promoted or transferred. Internal Promotions and

transfers play very important role in boosting morale and motivation level of existing

employees as the team members become clear that in case of any opportunity, priority

will be given to the best available in house source, and work with more dedication.

http://www.rozee.pk/http://www.rozee.pk/http://www.rozee.pk/


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Steps of Internal Recruitment include:

Selecting Suitable Candidates based on the data available in CVs

Preliminary Interviews by Team Tracking Department.

Aptitude Test. (Focus on IQ & Team Working Capabilities)

Panel Interview

Job Offer.

After Final Interview selected candidate's profile is sent to the MD (along with

recommendation and proposed Salary Package) for Appointment Approval.

External Recruitment: In case of Middle Management Recruitment preference is given

to well known employment Agencies (like Abacus Consulting or KPMG). In Case of

Line Managers and support staff recruitment SCL uses its own Team & Tracking

Department for recruitment.

Steps of External Recruitment & Selection include:

Employee Requisition is send to HR Department.

HR Department than issue a form to the department from which requisition is

raised. This form is required to fill by the requested department, contains

particular information required for that job such as JDs, salary offered, Education,

Experience, specialty area, employment status.

1st Preference: On the basis of information supplied, the HR Department gather

the application population from the HRIS, if application population is not

available in HRIS then advertized in news paper and on employment websites to

gather the applicant pool.

2nd Preference: Job Posting by External Agency on Behalf of SCL _

3rd Preference: HR Consulting agency such as abacus Consulting mdip3iV&r~

Screening of Applications for Interview Calls "

Preliminary Interviews according to Job Specification

Tests according to Job Specification



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HR Department than recommends Potential Candidates to concerned Department

for Final Interviews by SCL Management depending upon the acceptance of the

offer by the applicant and availability to fill the vacancy within specified time.

Panel Interviews by Department Head along with AM Team & Tracking Dept. for

final Selection. Selection ratio is very limited that is around 5% and acceptance

rate is 100%.

3.2.3.4. Orientation in SCL

As far as concerned SCL, Orientation is mainly informal by assigning the job to any

senior member to introduce the newly appointed employee:

Introduction to department peers and seniors

Key members of other departments

Product line of the company

Role and functions of department

Organizational chain of command

Administrative policies

Cultural orientations

Working styles of departments

3.2.3.5. Training in SCL

It is the process that involves the acquisition of skills, concepts, rules and attitude to

enhance employee's performance and maintain the organizational competency to attain

competitive advantage over the industry. In order to analyze the need of training,

employees and departments are appraised for GAP analysis. These performances GAP

are then categorized as:

Resource GAP

Competency GAP

Motivational GAP



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Effort GAP

Constraints GAP

On these bases trainings are planed which cover training assessments (GAP Analysis),

design of trainings (Contents), Delivery of Trainings (Scheduling and Arrangements) and

evaluation of trainings (Trainings tests and Performance Measurements). In SCL the

frequency of performance appraisal is quarterly which give the employees assessments

and helps in recognizing the need for trainings. Training initiatives could also be raised

from any particular departmental head for their subordinates.

After finalizing the need for training, the company then analyzes the option of internal

trainer or external trainer. In case of external trainer than training contents and modules

are finalized against the trainer fees. On the spot customization of contents could also be

exercised subject to negotiations with trainer on fees issues.

HR department is responsible for all arrangements, resources, availability of trainers and

trainees and scheduling. After one week of training, HR department circulates a form

required to fill by the trainees covering the trainee's satisfactions, training effectiveness,

re-producability, ambiguities and need to revise the training etc. This form only coversthe employee feedback and collected formally. Additionally, Sr. Manager of the

concerned department is asked by the General Manager about the effectiveness of

training. This is just verbal practice and will never be the part of evaluation record.

Beside all these short term trainings, there is a provision in Govt. Labour Department that

if an employee is working with same organization for certain time and he/she want to

upgrade academic profile by taking advance studies, then the company may apply on

behalf of that employee to grant the scholarship. Some time companies also grant

scholarships covering whole or partial financial aid to that employee for long term

trainings or up gradation of academic profile, but in case of SCL there is no any practice.

Training in SCL Include:



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In House Training Seminars, training through the expert management staff within

the departments (Mentoring) and at Manager Level, inter departmental trainings

sessions are also conducted to improve the horizontal communication and co-

ordinations.

Technical and Job Based Training are also organized from Reputed Consulting

Firms, where new level of training is required than trainers are outsourced and

they are highly paid. This type of training is much more expensive than in house

training.

Job Rotations these are by virtue of working with other department culture and

understanding the working ethics and enhance knowledge. This could also be

carried out for inter departmental compatible jobs.

3.2.3.6. Performance Management System in SCL

Performance management is a process used to identify, encourage, measure, evaluate,

improve, rewarding employee performance on the basis of quality and quantity of work

assigned and achieved, time variances, absenteeism and duty hours completions and over

all conduct of employees such as competiveness and attitude within organization to

establish and evaluate an individual's job performance to achieve goals and objectives.

Different Methods are used in Different Department for Evaluation of Employee

Performance:

Sales & Distribution Department

Achievement of Targets

Supply of Products as per demand

Production Department

Yield Percentage (Productivity)

Quality of the Product

Finance Department

Management By Objectives (MBO)

360 feed back



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Job Description Performance

Role of performance appraisals includes compensations (money rewards), promotions

(uplift in hierarchy), warnings before dismissals and downsizings. In SCL only

administrative role of performance appraisal is practiced. Whereas organizational role of

performance appraisal is also important which include HR inventory strengths, identify

areas of growth and HR development plans. Appraisal sources include self evaluations,

subordinates, supervisors, managers and coworkers or peers.

Frequency of this performance appraisal system is quarterly but only three quarters are

implemented as one month is consumed in each quarter for data collections.

In case of 360 appraisals: co workers, subordinates and supervisors appraise within the

department at offices level and executive level evaluations. While in case of Assistant

Managers and Sr. Managers, additionally interdepartmental evaluation is also exercised.

In case of MBO appraisals: quarterly objectives are set by the respective supervising

Manager in term of objectives and job descriptions. At the end of each quarter, a meeting

is held in which competency and skill form of respective employee is filled whichincludes self evaluation, cross checked by the supervisor and finally variances are

discussed with the employee in meeting. 360 appraisal forms are already collected for

that employee before MBO meeting and also discussed weak areas of 360 appraisal

report.

3.2.3.7. Compensation System in SCL

It is define as what employees receive in exchange for their work. The synonym of the

compensation system is reward system. There are two types of reward systems Intrinsic

(intangible, psychological, social effects) and extrinsic (tangible and money matters).

Components of reward system include:

Direct Reward Indirect Rewards



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Base Pay (individual) Insurance

Wages Paid time off

Salaries Retirement Pensions

Bonuses Worker's compensations

Variable Pay (individual, dept., org)

Stock options

Incentives

Objectives of Compensation Include:

To attract and keep the desired quality and mix of employees

To ensure fair and equitable treatment

To motivate employees to improve their performance continually

To ensure compensation is maintained at the desired competitive

level

Employment benefits includes:benefits and services that employees receive as indirect

compensation; these benefits are of different nature such as Legal Benefits, Retirement

related, Insurance Related & others.

Legal benefits include: Social Security, unemployment compensation and

workers compensations.

Retirement related benefits include: Pension plans & Preretirement plans

Insurance related benefits include: Health Insurance, Dental Insurance, Life

Insurance and Accident & Emergency Insurance.

3.3 Benefits in SCL:

For Higher Management

Company Provided Transportation

Pick & Drop Facility

Free Accommodation

For All Staff Members



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Medical Benefit

Life Insurance

Paid Holidays

Paid Medical Leaves

LEGALLY

Social Security

INSURANCE

Life Insurance

Health Insurance

3.4 Labour Union Relations in SCL

In SCL there no labor Union exists. However all the labor related issues are handled by

Personnel Department and play advocacy role on behalf of Labour to the Top

Management.

3.4.1 Preparation and collection of applicant's info:

Resumes are collected from applicants. Already present resumes are also collected

which are resulted from walk ins and write ins.

3.4.2 Evaluation:

Evaluation of employees is done by using software. This software helps the HR

department in evaluation of employees. Evaluation is done on monthly basis.

3.4.3 Feed Back:For feed back company uses the 360 degree rule. This enables the HR department

to get feed back from every level and every side. Further feed back is provided and

received by each employee.



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3.4.4 Career development

Career development is the important function of the HR department because all

the training programs are initiated by this department and therefore it plays a vital

role in career development.

3.4.5 Outsourcing:

HR department also outsource employees which are above manager level. For this

purpose this department gets services of a recruiting agency named "Abacus

Recruiting Agency Lahore". So Shamim and Co. acts as a client of this agency for

hiring of staff members above manager level.

3.4.6 Ensuring safety at the workplace

Providing safe working environment to the employees in the responsibility of the

HR department and it has a check over it. Particularly employee's safety is ensured

in tile production department in order to avoid the loss.

3.4.7 Transfer and promotions

All the transfer and promotion decisions are made by the HR department. But in

case of senior manager a meeting is conducted and the decision is made whether to

promote or not.



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3.5 Structure of Human Resource Management:

The structure for Human Resource Management starts from Executive Inchgarge of HRand then Assistant Executive Incharge for HR and then coordinator. The post of

coordinator is of two types which include Region Vise and Branch vise. The structure is

as under:



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3.6 Human Resource Planning:

The processes by which management ensures that it has the right personnel, who are

capable of completing those tasks that help the organization, reach its objectives.

Human resource planning refers to the planning of human resource functions, or in otherwords, planning how human resource management will be executed.

Recruiting

Selecting

Hiring

Orienting

Training and retraining

Motivating

Coaching

Mentoring

Counseling

Recognizing achievements

Empowering

Communicating

Evaluating

Promoting

Laying off

Dismissing

3.7 Human Resource Planning (HRP) Process:

a) Determine the organ iza tional mission

It states Shamim & Co,s overall purpose and basic business scope and operations it

provides information.



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b) Scan the organ iz at ion environmen t: This is known as SWOT analysis

through this process Shamim & Co,s HR department identifies opportunity, threat,

strength and weakness that can be faced by the Shamim & Co.

c) Set s t ra teg ic goa ls : Set specific long term and short term goals and

objectives. These goals are specific, challenging and measurable.

d) Formulate a s trateg ic plan: Course of action is designed to meet strategic goals

and departmental goals are selected at this step.

3.7.1 These are steps of HRP process.

Determining the objectives

Defining skills required to meet objectives

Determine additional human resources requirements in light of current HR.

Develop action to meet the anticipated HR needs

3.8 Human Resource Management Forecasting:

Shamim & Co. uses different techniques to determine the human resources required that

involve identifying the jobs, skills and knowledge required by those jobs and the

performance level of the current workforce. Using this data, it can forecast hiring or

reorganizing needs for both the short and long term. Forecasting methods typically

includes using past data to predict future staffing. Additionally, Shamim & Co. can use

survey, benchmarking and modeling techniques to estimate workforce staffing numbers.

Use several methods and cross-check your findings to obtain the most accurate results.

Step 1

Analyze work operations. Conduct a detailed job analysis for each function by company

and list the policies and procedures required to complete each task. Document the



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Step 5

Document the forecasting process and follow it consistently throughout the company so

that all managers align their forecast to your strategic direction, identify skill gaps, create

action plans to address shortages, implement plans to hire and retain skilled personnel

and evaluate forecasts on an ongoing basis. Using this model, Shamim & Company can

more accurately guide workforce planning efforts for all skill areas such as information

technology and knowledge management.



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3.10 EMPLOYMENT AGENCY

Shamimn & Company does not consult any employment agency for its recruitment

process.

3.10.1 ADVERTISING MEDIA

Advertisement is done through print media as Newspaper in order to attract applicants.

Especially daily Jang will be preferred for advertisement.

3.10.2 APPLICATION FORMS

Almost all organization requires job candidates to fill out an application. The application

might be a form on which the person gives his or her name, address, and telephone

number. Or it might be a comprehensive personal history profile, detailing the persons

activities, skills and accomplishments.

3.11 EMPLOYMENT SELECTION PROCESS

All of the process from recruitment to training is done in the main head office of Shamim

& Company in Lahore. Selection process consists of following procedures.

3.11.1 POLICY

It is the Companys policy

1. To lay down procedures for recruitment and promotion of employees.

2. To lay down procedures to select right men for the right jobs on merit in order to

attain optimum efficiency and productivity

3.11.2 OBJECTIVE

The objective of the policy is: - To establish a fair & rational system for recruitment and

promotion of employees.



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3.11.3 SELECTION BOARD/COMMITTEE

The Competent Authority may constitute the selection committee for recruitment of

employees. The recommendations of the selection committee shall be referred to the

competent authority for final selection and approval, as laid down in the Recruitment

Procedure for Council Employees attached as Annexure to regulations.

1. All employees of the Shamim & Co. will be appointed through advertisement in the

Press except grade S4.

2. The quorum for selection board will be 50% of the total member of selection board

including HR Manager.

3. If President of selection board can not chair due to any reason, he may request any

member of selection board to chair the Board.

3.11.4 WRITTTEN TEST

In Shamim & Co. written test of all applicants is conducted by the HR Department. The

test includes almost all areas depends upon nature of the job. Those applicants who

qualify are invited for an interview. The criteria of written test are change upon nature of

job

3.11.5 INTERVIEW

Short listing is done on the basis of academic record and written test and these short listed

candidates are called for an interview. Interview process is done in the main head office

Shamim & Co. at Lahore.

3.11.6 EMPLOYEES PLACEMENT

Selected employees are appointed to the position for which they are selected at desired of

Shamim & Co near to his home station etc.



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3.11.7 APPOINTMENT OF TEMPORARY (Daily Basis)

The Production Manager with permission of HR Manager and Director may appoint any

person on temporary basis depending on the requirements. Such appointments vary with

the variations in season.

3.12 EMPLOYEEDEVELOPMENT

3.12.1 WHAT IS EMPLOYEE DEVELOPMENT?

Employee development is a joint, on-going effort on the part of an employee and the

organization for which he or she works to upgrade the employee's knowledge, skills, and

abilities. Successful employee development requires a balance between an individual's

career needs and goals and the organization's need to get work done. Employee

development programs make positive contributions to organizational performance. A

more highly-skilled workforce can accomplish more and a supervisor's group can

accomplish more as employees gain inexperience and knowledge. Employee

development programs make positive contributions to organizational performance. A

more highly-skilled workforce can accomplish more and a supervisor's group can

accomplish more as employees gain inexperience and knowledge.

3.13 WHY SHOULD EMPLOYEE SKILLL & ABILITIES BE

DEVELOPING?

Employee development programs make positive contributions to organizational

performance. A more highly skilled workforce can accomplish more as the individuals

gain in experience and knowledge. In addition, retaining an employee saves the

organization a great deal of money. One method of retention is to provide opportunitiesto develop new skills. In research conducted to assess what retained employees,

development was one of the top three retention items.

1. Improve Employee Performance

2. Develop New Managers

3. Recognizing and developing high-potential employees



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3.13.1 IMPROVE EMPLOYEE PERFORMANCE

We can create a customized, in-depth developmental plan for each of your employees by

pinpointing their abilities, motivations and growth opportunities. When individuals have

clear expectations and learn specific strategies for maximizing their potential and

improving performance, they feel valued, motivated and invested in their own

professional development, as well as in the growth of the company

3.13.2 DEVELOP NEW MANAGERS

Most people in managerial positions have had little or no management experience or

training before taking on their current roles. And problems often occur because the

individual's initial expectations, as opposed to the real responsibilities of the position, are

entirely different. When people are promoted to management positions for the first time,

it is vital that appropriate tools, techniques and guidance are provided to make a

successful transition from being a member of the team to leading the team. Caliper can

help new managers hone the skills required for making decisions, managing priorities,

developing others, communicating effectively and getting projects completed through

delegation.

3.13.3 RECOGNIZING & DEVELOPING HIGH POTENTIAL EMPLOYEES

Pinpointing and developing high-potential employees is the main ingredient to ensuring

your organization's continued success. Whether it's preparing them for a high-level role

or helping them take on more responsibilities, acknowledging your top performers will

help you retain valuable employees and set themand your companyup for future

success. Caliper can work with you to discover the competencies necessary for success in

your organization, to conduct Three Sixties to determine who has leadership potential and

to begin development programs so your high-potential employees are ready take on more

responsibility when you need them to.



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3.14 PERFORMANCE MANAGEMENT

3.14.1 SETTING PERFORMANCE STANDARD & EXPECTATION

The success of your business is directly related to the commitment and productivity of the

people who work in your business. And yet it is generally recognized that 60% of

employees, or more, are underutilized in their role sat work. So what are the factors that

contribute to low performance standards andexpectations?Communication, or miscommunication, is one of the major sources of low productivity.The messages that move between the owner, employees, managers and even customers

are not understood in the same way. One classic example is that business owners tend to

assume that employees and managers see things the same way they do. Managers tend to

lower their expectations (unconsciously) so that they will not have to confront

employees. Most people dislike discussing declining performance with their employees,

and so actively avoid having to do so by reducing heir expectations of whats required.

Employees have a tendency to protect themselves from possible failure by pushing back

on what is expected. They will often negotiate/bargain the job down to a more

comfortable level

3.14.2 PERFORMANCE REPORTS WRITING PROCEDURE

Every employee will be appraised on the basis of his / her performance, achievement of

goals, general conduct, communication skills, pear relationship, teamwork, and academic

and professional qualifications.

1. Appraisal shall primarily be done by the immediate supervisor on prescribed

Performas.

2. The appraisal shall be done on yearly basis for the period ending June30 for each

employee.



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3. The process of performance appraisal shall be initiated by the Administration / HR

Department of Shamim & Co. and shall be completed within 3 week of receipt of

performance appraisal forms by the respective in charge.

4. While rating and employee on two extreme positions in outstanding or bad

(unacceptable) the appraiser will justify by recording his comments giving particular

instances for arriving at such conclusions.

5. Competent Authority will finally approve the recommendations.

3.15 EMPLOYEE COMPENSATION AND BENEFITS

3.15.1TYPES OF COMPENSATION AND BENEFITS

These are the following types of compensation and benefits are in Shamim & Co..

3.15.1.1 ANNUAL INCREMENT IN THE SALARY

The Chairman will issue increment policy for each year (1st July 30 June)and

appointing authority for the various posts will sanction annual increment to the

employees as per increment policy issued by the Chairman for that year. The increment

annual shall accrue on 1st July each year subject to the condition that the employee will

be entitled to the increment if he/she has rendered at least six months continues service

on 30th June. The annual increment will be given to all employees as per increment

policy for the year. The increment of an employee may be withheld on account

of unsatisfactory performance or on account of disciplinary action based on misconduct

and the employee shall be informed accordingly.

3.15.1.2 PERFORMANCE INCREMENT

The Chairman will issue increment policy for each year (1st July 30 June)and

appointing authority for the various posts will sanction performance increment to the

employees as per increment policy issued by the Chairman for that year.

The performance increment shall accrue on 1st July each year subject to the condition

that the employee will be entitled to the increment if he/she has rendered at least six



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months continues service on 30th June. The performance increment will be give to the

selected employees base on the overall performance evaluated of the employee during

the year as per increment policy for the year

3.15.1.3 SPECIAL ADDITIONAL MERIT INCREMENT

The Chairman may grant special additional merit increment to any employee based on

his/her exceptional services / performance beyond the call of the duty

3.15.1.4 PROVIDENT FUND

An employee after confirmation in service shall be entitled to become the member of the

employee provident fund scheme of the Council. A deduction@ 10% of the basic pay

shall be made from the salaries with equal contribution for Shamim & Co. secretariat

Employee from Shamim & Co. account to Employees account. The administration of

provident fund will be done by the trustees house in Human Resource Management

Department in accordance with laid down provident fund rules /regulations approved by

the Council and as permissible under income tax laws.

3.15.1.5 Group Life Insurance Scheme

All permanent employees will be insured under a group life scheme for the amount

prescribed from time to time by the management, payable in the event of his/her death

during service in accordance with the terms & conditions of Group Life Insurance

Scheme approved by the Council.

Premium under this scheme shall be fully paid from Shamim & Co. accounts to all

employees respectively.

315.1.6 Group Health Insurance Scheme

Under the Group Health Insurance Scheme hospitalization and other charges for

treatment at a hospital other than food shall be provided to all permanent employees and

their families through a health insurance scheme in accordance with the terms &

conditions of Group Health Insurance Policy.



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The Chairman is authorized to frame the health insurance policy and approved the terms

and conditions of health insurance with reputable insurance companies subject to Council

ratification.

3.15.1.7 Leave Fare Assistance

Permanent employees shall be eligible to leave fare assistance equal to one month gross

present salary in a calendar year for completed year of service provided the employee is

granted earned leave for not less than 10 days at the time of availing the LFA. Leave fare

assistance is to be availed in the same year it is granted. However, it may be accumulated

for two years incase earned leave is refused due to exigency of service. The period

of earned leave in any will not be less than 10 days.



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3.16 ORGANIZATION CAREER MANAGEMENT

Career management/planning are the process of making and implementing career

decisions. Ideally you should start the process well before your final year, but you can

start at any stage. An effective career plan requires all the elements in the career

planning. You may find you have already explored some of them. It really does not

matter where you start as long as you cover all the elements. You should find the process

helpful whether you have a clear vision or no ideas what you want to do and you should

be able to apply this process throughout your working life .Careers service staff are keen

to help, but the commitment to tackle the process must be yours. If you are unsure where

to start we suggest you begin with 'What I want and what I have to offer'

3.16.1 TEN STEPS TO PLANNING YOUR CAREER

1. Develop a career plan. Think about what you want to do and find out more about

the kind of training, education, and skills you will need to achieve your career

goal

2. Assess your skills and interests. Think hard about what you enjoy,what youare good at, what kind of personality you are, and the values you hold.

3. Research occupations. Find out more about the nature of the jobs that interest you,

such as educational requirements, salary, working conditions, future outlook, and

anything else that can help you narrow your focus.

4. Compare your skills and interests with the occupations youve selected. The

career that matches your skills, interests, and personality the closest may be the

career for you.

5. Choose your career goal. Once you've decided what occupation matches up best

with you, then you can begin developing a plan to reach your career goal.

6. Select a school that offers a college degree or training program that best meets

your career goal and financial needs.

7. Find out about financial aid to help support you in obtaining your career goal. If

you haven't already done so, begin saving for college.



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8. Learn about job hunting tips as you prepare to graduate or move into the job

market.

9. Prepare your resume, and practice job interviewing techniques.

10. Go to your career guidance center (at your middle school, high school, or college)

or local library for additional information and help on career planning, or check

out our Other Internet Resources.

3.16.2 EMPLOYEE JOB CHANGES

Employee attitudes toward job changes, Management enforced job change and employee

perceptions of the psychological contract examine employees contractual responses to

enforced job change. Some job changes may be voluntary. You may be unhappy with

your present employer. Any two appointing authorities may authorize a lateral job changeor voluntary demotion for an employee between organizations. In Shamim & Co. the

employee may be moved from Main office to sub offices and from Head Office to

Multan Office into other department regarding same position and same scale.

3.17 Jobs Changes within the Organization:

These are the following points be capable to a person for promote, transfer and enforce

for job changes;

Abilities (aptitude)

Skills

Interests

Values (what motivates you)

Personal qualities

Preferred lifestyle



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3.17.1 Promotion:

1. Promotion is the discretion of the management and cannot be claimed as a

matter of right.2. Vacant posts of Council will be filed with existing employees as possible

who fulfill the eligibility criteria (Both Qualification and Experience) of that

post to which one is being promoted.

3. Employee may be considered for promotion in the next grade based on

performance / circumstances provided they have completed a minimum of 3

years of service in the existing grade.

4. Chairman will be the competent authority to approve cases for accelerated

promotion of employees based on exceptional performance / circumstances by

relaxing condition of 03 years service.

5. Employees if promoted will get promotional increase of up to 10%or

minimum of new pay scale which ever is higher to the promoted employee.

6. Proposals for promotion of eligible employee will be considered once in a

year. Total process is completed by 1st October of each year.

7. The proposal for promotion of employee will be forwarded by the

immediate supervisor to the Competent Authority of that post in which one is

being promoted on the basis of his / her performance. The Competent

Authority will constitute a Promotion Board to review the promotion

proposals on the basis of employees annual appraisal, performance, results of

in house examination/test, achievement of goals, general conduct,

communication skills, pears relationship, and team work, academic &

professional qualifications and make recommendations for his

consideration/approval.

8. If an employee has reached the maximum limit of his / her present pay

scale and has not been promoted to the next grade, he will continue to receive

increment in salary according to increment policy for the year subject to the

condition that total emoluments do not exceed the maximum limit of next

higher grade w.e.f. 01.07.2007. As an example date, month and year.



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3.17.2 Transfer:

Moving employees either laterally or downward; usually does not reduce costs but canreduce intra organizational supply demand imbalances. Every employees shall be liable

to serve anywhere within the province against any post. Transfer occurs when an

employee is moved from one job to another position that is relative, equal in pay,

responsibility or organizational level. Employees can be transferred from one station of

Shamim & Co. to any other station and head office(Lahore).

3.17.3 Demotion:

Demotion occurs when an employee is moved from one job to another position that is

lower in pay, responsibility and/or organizational level. Demotion is used as a tool of

punishment, but it is temporarily. The Competent Authority will be authorized to initiate

disciplinary action against any employee on the basis of his own knowledge or on

information placed before him, in accordance with Rules / Regulations and the provisions

of any law for the time being in force, applicable HR Department. The following types of

punishments or any other punishment as the competent authority may decide on

recommendations of the inquiry committee depending upon the nature of each

offence/charge may be imposed

3.18 SEPARATION:

3.18.1 Lay off

Temporary involuntary termination; may last only a few days or extended to years. The

Competent Authority will be terminate/dismiss any employees in accordance with Rules

& Regulations after giving one month notice. It is applicable over all the employees.



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3.18.2 Termination:

Every employee will be entitled to a service certificate on resignation /termination from

service as per noted as indicated in appointment letter. An employee whose services are

terminated on account of misconduct shall not be entitled to be paid any pay and other

benefits. Employment of any employee who is on contract basis can be terminated on the

completion of contract or contract period

3.18.3 Resignation

Every employee will be entitled to a service certificate on resignation /removal from

service as per noted in appointment letter. Resignation of employee can terminate

employment; similarly attrition can terminate employment permanently. Employees

sometimes need to leave their job temporarily. The reasons may include medical or

educational purpose

3.18.4 Retirement:

According to rules & regulations designed by HR department for the employees service,

all employees of Shamim & Co. shall retire from service on attaining the age of 60 years.

3.19 Labor Management Relationship:

The field of labor relations looks at the relationship between management and workers,

particularly groups of workers represented by a union. Labor relations is an important

factor in analyzing "varieties of capitalism", such as neo corporatism (or corporatism),

social democracy, and neoliberalism (or liberalism).Labor relations can take place on

many levels, such as the "shop-floor", the regional level, and the national level. The

distribution of power among these levels can greatly shape the way an economy

functions. Another key question when considering systems of labor relations is their

ability to adapt to change. This change can be technological (e.g., "What do we do when

an industry employing half the population becomes obsolete?"), economic (e.g., "How do

we respond to globalization?"), or political (e.g.," How dependent is the system on a



58/85

certain party or coalition holding power?").Governments set the framework for labor

relations through legislation and regulation. In Australia labor relations is the commonly

used term, though in recent years the term workplace relation has also become common.

This was a prominent issue in the defeat of the centre-right Howard Liberal government

tat the 2007 federal election, who with a Senate majority had introduced the Work

Choices policy. The academic discipline of labor studies is closely related to and often

studied and taught in conjunction with the study industrial and labor relations in English

language universities



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0100000000200000000

300000000400000000500000000600000000700000000

values

2005 2006 2007 2008 2009

year

LIQUIDITY RATIOS

CA

CLWorking Capital

4.1 FINANCIAL ANALYSIS

4.1.1 LIQUIDITY RATIOS:

These ratios are important in measuring the ability of a company to meet both its short

term and long term obligations.

Working Capital

Working capital is an indication of the short run solvency of business

Working Capital = C.A C.L.

Year 2005 2006 2007 2008 2009

CA 343179640

390387892 468465470

562158564 674590277

CL 280253635

326286103 375229018

431513371 496240376

Working Capital 62926005 64101789 93236452 130645193 178349901



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0100000000200000000300000000400000000500000000

600000000700000000

values

2005 2006 2007 2008 2009

Years

Current Ratios

CA

CL

Current Ratio

4.1.2 Current Ratios

Current Ratio =LC

AC

.

.

Years 2005 2006 2007 2008 2009

CA 343179640

390387892

468465470 562158564 674590277

CL 280253635

326286103

375229018 431513371 496240376

Current

Ratio 1.2 1.2 1.25 1.30 1.36



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0100000000

200000000

300000000

400000000

500000000

values

2005 2006 2007 2008 2009

Years

ACID- TEST RATIO

CA

CL

Q Ratio

4.1.3 ACID- TEST RATIO

This ratio is like the current ratio but excludes current assets such as inventories and

prepaid expenses that may be difficult to quickly convert into cash.

Quick Ratio=Quick Assets / Current Liabilities

Years 2005 2006 2007 2008 2009

CA 42218250 49449960 57856450 67692050 79876619

CL 280253635 326286103

375229018

431513371 496240376

Q Ratio 0.1506430

1 0.151554 0.1541897 0.15687127 0.16096356

DEBT MANAGEMENT

This is the most common measure of the ability of a firms operations to provide

protection to the long-term creditor.



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0

5000000

1000000015000000

20000000

25000000

30000000

Values

2005 2006 2007 2008 2009

Years

TIME INTEREST EARNED

EBITInterest Exp

TIE

4.1.4 TIME INTEREST EARNED

TIE = EBIT /INTEREST EXPENSE

YEAR 2005 2006 2007 2008 2009

EBIT 13130022 15544100 18432038 21643604 25539453

Interest

Exp 1644312 1061878 1536003 1812483 2138730

TIE 8 15 12 11 12



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0100000000200000000300000000400000000500000000600000000700000000800000000

Values

2005 2007 2009

Years

DEBT RATIOS

TD

TA

Debt Ratio

4.1.5 DEBT RATIOS:

This ratio measures what portion of a companys assets is contributed by creditors.

DEBT RATIO: TD / TA

YEAR 2005 2006 2007 2008 2009

TD

281275235

327307703

376403858

432864437 497794102

TA

38516561

9

43979560

4

52775482

0

63330578

5 759966942Debt

Ratio 73% 74% 71% 68% 65%



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0

100000000

200000000

300000000

400000000

500000000

Values

200520062007 20082009

Years

D/E RATIO

TD

CED/E

4.1.6 D/E RATIO:This ratio indicates the extent to which debt is covered by shareholders funds. It reflects

the relative position of the equity holders and the lenders and indicates the companys

policy on the mix of capital funds.

D/E = TD / TE

YEAR 2005 2006 2007 2008 2009

TD

281275235

327307703 376403858 432864437 497794102

CE

103890384

112487901 151350962 200441348 262172840

D/E 2.71 2.9 2.5 2.2 1.9



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0

500000000

1000000000

1500000000

2000000000

Values

2005 2006 2007 2008 2009

Years

ASSET MANAGEMETNT

A/R

SalesDSO

4.1.7 ASSET MANAGEMETNT

These ratios are important in measuring the efficiency of a companyDays sales in receivable

Shows both the average time it takes to turn the receivables into cash and the age, in

terms of days, of a company's accounts receivable.

Days sales in receivable = 365/Re

SalesNet

ceivablesGross

YEAR 2005 2006 2007 2008 2009

A/R 16881442 15527617 20156759 23180273 26657334

Sales

849952926 885258201

1062309841 1274771809 1529726171

DSO 7 6 7 7 6



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02000000004000000006000000008000000001000000000

120000000014000000001600000000

Values

2005 2006 2007 2008 2009

Years

TOTAL ASSET TURNOVER

Sales

TA

TAT

4.1.8 TOTAL ASSET TURNOVER

A company's effectiveness is generating sales revenue from investments back into the

company. The higher the Total Asset Turnover is the more effective use of the company's

investments. Total Asset Turnover can be very useful if you watch what actually makes

up the Total Assets of the company.

A company with low inventory and strict credit policies to keep Accounts Receivable low

will help the Total Asset Turnover look even better. Of course it depends on all of the

company's Total Assets.

TAT = SALE / TA

YEAR 2005 2006 2007 2008 2009

Sales

849952926 885258201

1062309841

1274771809 1529726171

TA

385165619 439795604 527754820 633305785 759966942

TAT 2.21 2 2 2 2



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0

200000000

400000000

600000000

800000000

1000000000

Values

2005 2006 2007 2008 2009

Years

Inventory Turnover

CGS

A Inventory

ITO

4.1.9 Inventory Turnover

This ratio measures the number of times merchandise is sold and replaced during the year

Inventory turnover: Cost of goods sold/ Average Inventory

YEAR 2005 2006 2007 2008 2009

CGS

587227740 644574970

741261215 852450397 980317957

A

Inventory

300961390 340937931

388669241 443082935 505114546

ITO 2 1.9 1.9 1.92 1.94



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0

50000000

100000000

150000000

200000000

250000000

300000000

Values

2005 2006 2007 2008 2009

Years

RETURN ON EQUITY (ROE)

NI

CE

ROE

4.1.10 PROFITABILITY RATIOS:

Profitability Ratios show how successful a company is in terms of generating returns or

profits on the Investment that it has made in the business. If a business is liquid and

efficient it should also be Profitable.

4.1.10.1 RETURN ON EQUITY (ROE)

The Return on Equity of a company measures the ability of the management of the

company to generate adequate returns for the capital invested by the owners of a

company. Generally a return of 10% would be desirable to provide dividends to owners

and have funds for future growth of the company

ROE = N.I / C.E

YEAR 2005 2006 2007 2008 2009

NI 11485710 14482222 18102777 22628471 28285589

CE

103890384

112487901 151350962 200441348 262172840

ROE 11% 13% 12% 11% 11%



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0100000000200000000300000000400000000500000000

600000000700000000800000000

Values

2005 2007 2009

Years

RETURN ON ASSETS

NI

TA

ROA

4.1.11 RETURN ON ASSETS:

The Return on Assets of a company determines its ability to utilize the Assets employed

in the company efficiently and effectively to earn a good return. The ratio measures the

percentage of profits earned per dollar of Asset and thus is a measure of efficiency of the

company in generating profits on its Assets.

ROA= N.I / TA

YEAR 2005 2006 2007 2008 2009

NI 11485710 14482222 18102777 22628471 28285589

TA

385165619 439795604 527754820 633305785 759966942

ROA 3% 3.30% 3.40% 3.60% 4%



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0

500000000

1000000000

1500000000

2000000000

Values

2005 2006 2007 2008 2009

Years

NET PROFIT MARGIN

NI

Sales

NPM

4.1.12 NET PROFIT MARGIN:The Profit Margin of a company determines its ability to withstand competition and

adverse conditions like rising costs, falling prices or declining sales in the future. The

ratio measures the percentage of profits earned per dollar of sales and thus is a measure of

efficiency of the company.

NPM= NI /SALE

YEAR 2005 2006 2007 2008 2009

NI 11485710 14482222 18102777 22628471 28285589

Sales 849952926 885258201 1062309841 1274771809 1529726171

NPM 1.35% 1.64% 1.70% 1.80% 1.85%



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5.1 SWOT ANALYSIS

The over all evaluation of the company's strengths, weaknesses, opportunities and threats

is called SWOT Analysis. In general a business unit has to monitor key macro

environment and significant micro environment factors that affects its ability to earn

profits. The business unit should set up a marketing intelligence system to track trends

and important developments.

Market Opportunity

A marketing opportunity is an area of buy need in which a company can -perform

profitably.

Environmental Threat

An environmental threat is a challenge posed by an unfavorable trend or development

that would lead in the absence of defensive marketing action to deterioration in sales -or

profit.

Strengths

The marketing financial manufacturing and organization competencies of an organization

and its resources a considered its strengths.

Weaknesses



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The extent to which an organization is failed to get competitive advantage in a dynamic

environment.



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5.1.1 Strengths

Quality (product service, systems)

Quality of people (trained, motivated, committed)

Better sales planning because of systems

Dominance in National / Local Accounts

Ideal distribution mix

The confidence of public and good repute that attracts the investor.

High profit rate.

Strong financial position.

Well organized network of business operations.

Cooperative and team oriented.

Excellent Workplace.

Efficient management that can take the heavy risk.

Vital role in economic development.

Standard product and consistent quality.

Good consumer perception about product.

Knowledge of market and consumer demand.

Rapidly increasing market share.

The best marketing strategy.

Latest and consistent production technology.

Awarding the hard work staff.

Motivation to the staff.

Best interaction with suppliers and buyers.

Interaction with internal resources.

Communication system in place as e-mail, fax, internet.



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Easy access through internet.

Heavy tax Payer Company in Pakistan.



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5.1.2 Weaknesses

Weak infrastructure at distributor level for market coverage

Outlet level secondary sales data in indirect market

Insufficient salaries low level employees

No more motivation and encouragement for employees in form of incentives and

entertainment program.

High turn over of employees.

Unable to fulfill the demand requirements

5.1.3 Opportunities

Growth prospects in new brands like Mountain Dew

Sales expansion through improved brand equity

Coverage improvements

Cooler and deepfreeze injections

Loyalty of retailer and wholesaler can create loyal consumer.

Contract with good suppliers can enhance the market share.

Social responsibilities.

New style management.

New brand introduction.

New technology emergence.

Trading term legislation as no price for creating customer loyalty.

Efficient managers hiring.

Low cost skilled person availability.



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5.1.4 Threats

Heavy discounting, free sampling and monthly incentive to the trade (even ill

general markets)

Empty lifting

Emergence of B-Brands (Amrat cola etc) and high growth in spurious drinks

Strong competitors (Coca-Cola).

Increasing investment of competitors.

Rapid changes in demand due to seasonal reasons.

Inflexible and rigid environment. Inflation.

Low-income level.

Growth of lemon industry.

High distribution cost to reach for off areas.

Long and complex documentation for issuing of chiller.

Changes in consumer purchasing power.



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5.2 PEST ANALYSIS

5.2.1 Political

Pakistan despite all internationals & public perceptions today is a functioning

democracy & gradually there is a change in completion & composition of legislatures

with more educated people exerting into politics, similarly it helps in designing best

strategies to implement that could support the rivals of that companies. Some

governmental issues impact as there should maximum 7000 salary of every worker.

5.2.2 Economical

There are no as such economical issues in shamim & Co. limited.

5.2.3 Societal

There are so many societal issues in SCL. He major issue is that due to heavy

traffic there are let of problems create in distribution, in day timing, so distribution takes

place in evening timings.

5.2.4 Technical

There are no as such as technical problems of technology or experts. Senior trains

the unexperienced people. SCL performs computerized work due to latest technology.



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5.3 SUGGESTIONS & RECOMMENATIONS

The domain of Human Resource Department is limited to only Finance Division.

It should be centralized Human Resource Department, so that departmental

integrated Human Resource practices can be practiced, as HR department only

exist in the form of team tracking department under the Finance Division. It

should also take up the recruiting, selection, training, appraisals and

compensations functions of other departments such as Operations, Sales &

Distribution, Productions, Accounts, Administration and research Departments.

There should be centralized roles of Human Resource Departments, as team

tracking department is just performing operational role and other branch of HR

department known as Personal Department is performing administrative role.

Only two roles are functioning out of four important role of Human Resource

Department, other two roles are Strategic Role and Employee Advocacy Role

which are not in practice.

In Recruitment process, the short listings of the candidates are done by human

resource executive on the

Documents

Imran Final Report Pepsi