faheem internship report pepsi - copy
TRANSCRIPT
Shamim & Co. limited Multan
Submitted By M.Faheem Asghar
Submitted to Pepsi
Acknowledgement
I pay special thanks to ALLAH Almighty who bestowed me the opportunity, courage and confidence to obtain more knowledge to complete my internship program, which will facilitate me greatly in my intellectual development and skills capitalization.
I would like to submit my deepest gratitude to my parents, whose prayers always supported in every task of my life and my teachers, who really guided me to enhance my learning in Shamim & Co. (Pvt) Ltd Multan.
To accomplish whatever I have done in my internship, there were many people alongthe way who have been responsible for guiding me, advising me, encouraging meand even reprimanding me. To them, I am deeply grateful and would like to take thisopportunity to offer my heartfelt appreciation.
I
INTRODUCTION TO THE COMPANYPepsi International is a world renowned brand. It is a very well organized multinational company, which operates almost all over the world. They produce, one of best carbonated drinks in the world. Pepsi is a symbol of hygiene, quality and service, all over the world. Pepsi is producing Cola for more than 100 years and it has dominated the world market for a long time. Its head office is in New York.
FACTS ABOUT THE COMPANY
1. Pepsi is a USA based public company whose stocks are available in New York.2. Mountain Dew, acquired by Pepsi-Cola in 1964, switches its advertising and package graphics room hillbillies to action-oriented scenes.3. The third Mountain Dew slogan appeared in 1973 "Put A Little Yahoo in Your Life."4. PepsiCo acquired Pizza Hut, Inc. Pizza Hut was founded in 1958 by Dan and Frank Carney.5. Taco Bell is was acquired by Pepsi. Taco Bell was established in the mid 1960s by Glen Bell.6. PepsiCo purchased Kentucky Fried Chicken, the leader in the quick service chicken market. KFC was founded by Colonel Harland Sanders. Colonel Sanders began franchising the company in 1952. KFC was spun off along with Pizza Hut and Taco Bell businesses as Tricon Global Restaurants, Inc. in 1997.7. PepsiCo purchases Seven-Up International, the third largest franchise soft drink operation outside the United States
History of the company:
Pepsi-Cola was first made in New Bern, North Carolina in the United States in the early 1890s by pharmacist Caleb Bradham. On August 28, 1898
The owner of the Drug store Mr. Caleb Bradham prepared a drink, which the customer called “the Bred Drink”. "Brad's drink" was changed to"Pepsi-Cola" And later trade marked on June 16, 1903. Caleb Bradham bought the name "Pep Kola" from a local competitor and changed it to Pepsi-Cola. "Pepsi-Cola" is an anagram for "Episcopal" - a large church across the street from Bradham's drugstore. Caleb Bradham and his customers simply thought the name sounded well or the fact that the drink had some kind of "pep" in it because it was a carbonated Drink; They gave it the name "PepsiHe started his own production at Marco level and establish his own company. The business expanded and this drink got fame time. In 1909 this company reached to 24 states of America with more than 250 dealers. The very first packing of Pepsi was in 16.5 ounce.
In 1932 Pepsi cola has introduced its new packing in 12 ounce. In 1950 Pepsi cola started has its new Advertising Campaign with the name of “Refresh without Filling”. It also changed the chemical formula and decreased its sweetness and calories.
With the effort of the Sales & Marketing Department, Pepsi got so much fame that it established new plants at a rate of thirty per annum. In 1985 the design of the bottle has been changed after 20 years and a new and attractive packaging has been offered with two new flavors i.e. Teem & Miranda.
BUILDING THE BUSINESS4Advertising Pepsi-Cola as “Exhilarating, Invigorating, Aids Digestion,” the business began to grow. Caleb sold 7,968 gallons of syrup in 1903. Two years later, he awarded two franchises to bottle Pepsi- Cola to independent investors in Charlotte and Durham, North Carolina. In 1906, the number of franchises grew to 15, and leapt to 40 by 1907. By the end of 1910, there were Pepsi-Cola franchises in 24 states, and the company was selling more than 100,000 gallons of syrup per year. Building a strong franchise system was one of Caleb’s greatest achievements.Local Pepsi-Cola bottlers, entrepreneurial in spirit and dedicated to the product’s success, provided a sturdy foundation for a growing company. They were then, and continue to be today, the cornerstone of the Pepsi-Cola enterprise. Caleb’s business expertise and advertisingsavvy captured widespread attention for his company. He erected a Pepsi-Cola headquarters so spectacular that the town of New Bern featured it on a postcard. The company was one of the first in the United States to switch from horse-drawn transport to motor vehicles, and a 1913editorial in the Greensboro Patriot praised Caleb for his “keen and energetic business sense.” He was even mentioned as a possible candidate for governor. Pepsi-Cola’s advertisements changed, too. Famous racing car driver Barney Oldfield endorsed Pepsi in newspaper ads as “abully drink ... refreshing, invigorating, a fine bracer before a race.” Caleb promoted Pepsi sales with the slogan, “Drink Pepsi-Cola. It Will Satisfy You.” The outbreak of World War I changed the U.S. financial landscape, and the cost of doing business increased drastically. Sugar prices fluctuated wildly between record highs and disastrous lows, and so did the cost of producing Pepsi-Cola. In 1923, Pepsi-Cola was bankrupt. Caleb returned to his pharmacy and sold thevaluable Pepsi-Cola trademark to Craven Holdings Corporation, the first of what would be several owners.
Soon, New York stockbroker Roy C. Megargel bought the Pepsi-Cola trademark and struggled to save the business. He moved the company’s operations from New Bern, North Carolina,to Richmond, Virginia, in 1923, and with his own funds made up the deficits the company incurred annually. In 1931, despite his best efforts, the restructured National Pepsi-Cola Company was declared bankrupt for the second time. It wasn’t until a successful candymanufacturer, Charles G. Guth, appeared on the scene that the future of Pepsi-Colawas assured. Guth was president of Loft Incorporated, a large chain of candy stores and soda fountains along the Eastern Seaboard. He saw Pepsi-Cola as an opportunity to discontinue anunsatisfactory business relationship with the Coca-Cola Company, and at the same time to add an attractive drawing card to Loft’s soda fountains. He was right. Under Guth’s leadership, Pepsi-Cola became a thriving national brand once again. Within two years after its sale, Pepsi would earn $1 million for its new owner. With the resurgence came new confidence, a rarity in those days because the nation was in the early stages of a severe economic decline that came to be known as the Great Depression.
PEPSI EXPANDS AROUND THE WORLD
After the war ended in 1945, Pepsi-Cola turned its attention to ideas that would capture the spirit of a victorious America. The company moved its world headquarters to Manhattan, and continued to expand overseas into Latin America, the Philippines and the Middle East. At home,the company began experimenting with new bottle sizes, and for the first time began to package Pepsi-Cola in cans. But the post-war marketplace was changing rapidly. A new retail phenomenon called supermarkets was beginning to appear, and in combination with equallydramatic changes in the economics of producing soft drinks, Pepsi was forced to abandon its strategy of selling the soft drink for half the price of its chief competitor. Soon, the long-running “Nickel, Nickel” advertising was replaced with a claim more in keeping with energetic postwar America, “More Bounce to the Ounce.”
Throughout this period, Pepsi’s company president Al Steele’s constant traveling companion was his wife, known to America’s film fans as the glamorousmovie star, Joan Crawford. Many believe that it was stylish and sophisticated Miss Crawford who moved the company away from its “value” theme of the ’40s into the more sophisticated campaigns of the ’50s. A new logo incorporating the “bottle cap” was adopted, and Pepsi was no longer advertised based on price, but as a lifestyle accompaniment. After Mr. Steele’s death in 1959, Miss Crawford was elected amember of the board of directors.
Throughout this period, Pepsi’s company president Al Steele’s constant traveling companion was his wife, known to America’s film fans as the glamorous movie star, Joan Crawford.Many believe that it was stylish and sophisticated Miss Crawford who moved the company away from its “value” theme of the ’40s into the more sophisticated campaigns of the ’50s. A new logoincorporating the “bottle cap” was adopted, and Pepsi was no longer advertised based on price, but as a lifestyle accompaniment. After Mr. Steele’s death in 1959, Miss Crawford was elected amember of the board of directors.Premier Khrushchev to visit the Pepsi-Cola kiosk. The press snapped pictures of the two world leaders sipping Pepsi, inspiring “Sociable” themed headlines in newspapers around the world.“Sociables” was the first Pepsi-Cola campaign to focus on young people as the brand’s majorconsumer target, and was soon followed by another youth-oriented campaign that was to become Pepsi’s persona, “Now It’s Pepsi, for Those Who Think Young.”
THE PEPSI GENERATION:
The stage was set for another advertising breakthrough. In the late 1950s, a demographic phenomenon called the post-war “baby boom” would change forever the way Americans wouldthink, act and live. They were a new generation, embracing a new lifestyle and heading into the future with a conviction that what lay ahead was better than what lay behind. Pepsi-Cola sensed that attitude and captured their spirit with a name that has transcended time and continues to identify with Americans today. They were the first “Pepsi Generation.” This vanguard of active, funloving, contemporary America would claim Pepsi as its own,
under the banner “Come Alive! You’re in the Pepsi Generation.” That daring campaign, launched in the early ’60s, set a new standard for advertising. It captured, like no other, a portrait of America living life to the fullest. Ever since then, the spirit of that first Pepsi Generation campaign has been an integral part of America’s best-loved and most recognized advertising— “Join the Pepsi People, Feelin’ Free”...“You’ve Got a Lot to Live. Pepsi’s Got a Lot to Give”... “Have a Pepsi Day!”... “Catch that Pepsi Spirit!”...“Pepsi Now!” ... “The Joy of Pepsi”—campaigns that hold a mirror to the face of America and reflect the best of it. This is really what the Pepsi Generation set out to do in the first place. During its first 65 years, Pepsi-Cola Company sold only one product—Pepsi.
But with the baby boom, not only did the nation’s population change, so did their dietary habits. So, in 1964, the company developed a new low-calorie drink with a taste worthy of carrying the Pepsi-Cola name: Diet Pepsi. Initially advertised alongside Pepsi, Diet Pepsi later took on an identity of its own. One of its earliest campaigns, “Girlwatchers,” was built around a catchyjingle that became so popular it was released as a commercial record and hit the Top 40 list. In 1964, Mountain Dew, a regional soft drink favorite, became an important new addition to the growing family of Pepsi- Cola brands, and its advertising theme, “Ya-Hoo, Mountain Dew!” became the brand’s instantly recognizable signature.
Serving Pepsi in cans had, by now, proved so popular that full-scale commercial distribution began in 1965. That same year, the Pepsi-Cola Company merged with a successful Dallas, Texas, marketer of salty snacks, Frito-Lay, Inc., to form PepsiCo, Inc.—one of the great consumer products companies on the U.S. business scene. Donald M. Kendall was founder,and soon after the merger, the company opened its first soft drink operations in Eastern Europe and Japan.
PEPSI LOGOS (1898 TO 2010)
Have a look at how Pepsi worked on its logo from 1898 till date:
Let’s get on with an example of one of the biggest soft drinks company, Pepsi and see how this
company has adopted the idea of creating an identity for itself and to what extent it has been
modified over time.
In 1980’s, Pharmacist Celeb Bradham started this company by the name of ‘Brad’s drink in New
Bern, North Carolina. He had no company logo by that time, which proved good for him since he
soon realized that there should be some other name for his company, so he changed it to ‘Pepsi-
Cola’ and decided to have a registered logo for it which is visible in the 1898 logo.
The new name Pepsi-Cola became so popular among the masses that it was trademarked in 1903
and hasn’t been changed till date. In 1905, Bradham decided to modify the font type of the logo
to make it more readable. However, there were no design changes as such.
One year later, he thought to add the word ‘Drink’ in the logo and made the fonts bolder than
before.
In 1933, the company was bought by Loft, Inc. The company changed the bottle size from 6 to
12 oz. and came up with the ‘Refreshing and Healthful’ logo. The word ‘Drink’ was again
removed from the new Pepsi-Cola logo.
However, the major breakthrough in the Pepsi logo design came in 1940’s. Walter Mack, the
CEO of Pepsi came up with the idea of a new bottle design, with a crown having the Pepsi logo.
The ‘Pepsi Globe’ emerged when USA was in WWII, and to support the country’s war efforts,
Pepsi had a blue, red and white logo. This logo became hugely popular, and went on to be the
identifier for the company.
As a result, in 1950 and 1962, this bottle cap with the swirling blue and red became prominent in
the company logo. During the 1960’s when it became even more popular, the script was changed
from the curly red, and the main attraction was on the bottle cap in the logo.
We see the first appearance of the Pepsi Globe instead of the bottle cap in 1973. The typeface
was made smaller so as to fit in the globe. The Pepsi Globe was “boxed in”, with a red bar
coming in from the left and a light-blue bar coming in from the right.
Later in 1991, the typeface was moved from inside the globe. The red bar was lengthened and
the typeface came on the top of the globe.
The white background in the logo was replaced by the blue color, which also resulted in
dropping the red horizontal band in 1988. The globe now had 3D graphic and larger than earlier
versions. The name ‘the Pepsi Globe’ was given to the logo since both Pepsi and the globe were
touching each other.
After 1998, Pepsi changed its logo and gave the globe more prominence than the script itself. So,
the globe came on top of the script in 2003.
SLOGANS THROUGH TIMES Pepsi Logo
Pepsi-Cola has different slogans through its history. They remained much known. Pepsi is one of the world's most famous brands much like its rival Coca Cola. Pepsi Cola was originally called Brad's Drink after its creator, Caleb Bradham, a pharmacist from North Carolina. Pepsi was a carbonated soft drink he created to serve his drugstore's customers. The new name, Pepsi-Cola, was first used on August 28. The Pepsi logo is a simple globe with the Pepsi colors in the background and the word Pepsi in the foreground. Pepsi has changed its logo and its slogans a number of times since its introduction in 1898. The Pepsi slogans through the years are listed below
1898 Brad's Drink
1903Exhilarating, Invigorating, Aids
Digestion
1906 Original Pure Food Drink
1908 Delicious and Healthful
1915 For All Thirsts - Pepsi: Cola
1919 Pepsi: Cola - It makes you Scintillate
1920 Drink Pepsi: Cola - It Will Satisfy You
1928 Peps You Up!
1929 Here's Health!
1932 Sparkling, Delicious
1933 It's the Best Cola Drink
1934Double Size
Refreshing and Healthful
1938 Join the Swing to Pepsi
1939 Twice as Much for a Nickel
1943 Bigger Drink, Better Taste
1947 It's a Great American Custom
1949 Why Take Less When Pepsi's Best?
1950 More Bounce to the Ounce
1954The Light Refreshment
Refreshing Without Filling
1958 Be Sociable, Have a Pepsi
1961
Now It's Pepsi for Those Who Think
Young
1963Come Alive! You're in the Pepsi
Generation
1967Taste that Beats the Others Cold, Pepsi
Pours It On.
1969You've Got a Lot to Live, Pepsi's Got a
Lot to Give
1973 Join the Pepsi People Feelin' Free
1976 Have a Pepsi Day!
1979Catch That Pepsi Spirit
Take the Pepsi Challenge
1981 Pepsi's Got Your Taste for Life
1983Pepsi Now!
1984 The Choice of a New Generation
1987 America's Choice
1989 A Generation Ahead
1992 Gotta Have It
1993 Be Young, Have Fun, Drink Pepsi
1995 Nothing Else is a Pepsi
1997 Generation Next
1998 Same Great Taste
1999 The Joy of Cola
2000 The Joy of Pepsi
2003 Pepsi. It's the Cola
2005 Dare for more(Ask for me)
2006 Why you Doggin' Me
2008 Pepsify Karo Gay
Mountain Dew Slogans
Mountain Dew slogans since Pepsi purchased Mountain Dew from the TIP Corporation
in 1964:
1965 Yahoo Mountain Dew... It'll Tickle Your Innards 1969 Get That Barefoot Feelin'
Drinkin' Mountain Dew
1973 Put a Little Yahoo in Your Life
1974 Hello Sunshine, Hello Mountain Dew
1979 Reach for the Sun, Reach for Mountain Dew
1981 Give Me a Dew
1983 Dew it To it
1986 Dew it Country Cool. (Diet Dew also introduced this year)
1992 Get Vertical
2008 Do The Dew
MISSION STATEMENT
"To be the world's premier consumer Products Company focused on convenient foods and 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 for honesty, fairness and integrity."
VISION STATEMENT
"To be the world's best beverage company". Being the best means providing outstanding quality, service, cleanliness and value, so that their every customer is contented and happy with their products.""To increase the value of their shareholder's investment through sales growth, cost control and wise
Corporate Strategy
Goals:
As earlier discussed, the main objective or goal of Company is to satisfy the customer’s
needs along with maximization of profits.
Core Competencies:
The core competencies of Shamim & Company are:
Well-trained & experienced workforce.
Systems & Technology.
Financial & market know-how of its managers.
Well supportive facilities.
Competitive Priorities:
Shamim & Company is producing standardized products. So competitive priorities of
Shamim & Company are as following:
Cost:
Due to standardized products, Company gives priority to minimize the per unit cost &
total cost as well.
Quality:
Shamim & Company wants to maintain a consistent quality of its products i.e. the
product, which is produced here, must meet the design specifications.
Time:
Shamim & Company meets its delivery-time promises i.e. The Company pays most
attention to delivery -on- time, to satisfy customers & retailers’ needs on the time,
which they want.
Flexibility:
Since Shamim & Company does not focus the unique demand of customers & products
are standardized, So Company works for volume flexibility i.e. Company is able to
accelerate or decelerate the rate of production quickly to handle large fluctuations in
demand. The marketing department of this organization is assigned to make public
dealing. The marketing department is responsible to make advertisements of the
company products and get them sailed. They are given yearly sales targets and they are
liable to achieve that. They use different schemes and offer different discounts etc. to
achieve those targets. Sales 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. Due to its efforts the company has got the first position in sales in
1993 through out the Pakistan.
Following are the major contents of this department:
Marketing Development
Planned Analysis and Routine Planning of Market Strategies.
Competition Activity Monitoring
TOT Management
Time Management
Market Development:
The first and the most basic job of the sales and marketing department is to plan and
make targets. And also to makes strategies to achieve those targets and develop the
market. The following major factors are considered in this respect.
Collection of all the data about each and every distributors/outlets about its volume,
sales, growth and exclusivity.
Finding the gaps in market where there is potential.
Finding the points, where competitors are strong and how we can break this point.
Location of non traditional shops where potential is available for the beverage.
Different offers must be given to break the competitors point.
OUTLET:
Outlets play an important role in the growth of the market. By monitoring them you can
build your market, have their loyalty and increase your sale. Sales persons should
continuously visits outlets, listen their complaints and satisfy their needs and
requirements. They must have information about each and every outlet, its growth and
volume and type business. Proper check must be maintained to get the feedback from
the shopkeeper.
HISTORY OF PEPSI COLA IN PAKISATN
Pepsi cola is being produced and consumed 1n 48 countries of world. The areas covered
by Pepsi are divided into various zone or territory. There are 12-15 countries, that are
define above. In South Region Pakistan is also including.
At present, Pepsi Cola is No. 1 in sales wise and market share. It is the market leader.
But overall in the world Coca-Cola is No. 1.
In Pakistan, there are nine territories where the franchised unit produce and sell Pepsi-
Cola. Some of these territories are:
Lahore
Karachi
Rawalpindi
Peshawar
Multan
Gujranwala
Sakhar
Fasil Abad
Balochistan
Introduction to Shamim & Co. Pvt. Ltd.
Shamim & company (Pvt.) Ltd. is a branch of “Pepsi Cola International”. The company
established in 1964. Mr. Allah Nawaz Khan Tareen was the founder of the company and
also chairman. It is a great pleasure of “Shamim & Company” that it was Second Beverage
Company of Pakistan that time, and this time one of famous Beverage Company of South
Asia.
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 situated in
Lahore, Fasilabad, Karachi, Islamabad/Rawalpindi, Gujranwala, Sakhar, Peshawar and
Bolochistan that are describe above. The company was started 1st production in 1967 that
time brand was 7-up 270 ml that is why it is also known as 7-up factory. it is deal in
CSD(carbonated Soft Drinks).Pepsi cola international franchise Shamim & company
covering 18 districts & 135 stations.
Shamim & Co. Multan has very committed staff and this is the reason that it captures more
than 85% share of market share.
Company has now serviced new experienced & competent sales staff & increases this share
to 90% and above.
As for as distribution is conserved company has a very well-establish distribution network
covering whole of the franchise areas.
Depending on the potential of the town we have one and more than one distribution in each
town. Sales supervisor, sales officer is responsible for all the activities of the entire
distributor. He looks after the stock availability possibility and all the routes covered by the
salesman of that distribution. Salesman training is also a main responsibility of sales
supervisor. Company has invested too much money in shape of coolers, visi coolers,
counters and cabin.Which are offered to those shops which are producing good sales to
promote sales & obliges these shops?
All the services matters of coolers and maintenance and look after of these assets are also
the responsibility of our sales force.Every salesman the distribution network is covering a
specified area in which all the points and shops are listed in a “Route Card” salesman is
bound to fill that. Route card with the sales figures of every point on that specified day.
COPMANY PROFILE
Shamim & Co was established in 1967 under a franchise agreement with 7-UP to bottle
7-Up Soft Drinks. During 1973 Shamim & Co. Pepsi Cola Multan started to bottle Pepsi
cola as well. This was the first Pepsi franchise in Pakistan.
Since 1967 we have managed to grow rapidly and hold a commanding market share
which has made us one of the premier bottling companies in the region.
Our products are manufactured under strict quality control and conform to international
quality standards set by Pepsi co. we bottle over 500 million drinks per annum which
has earned us the distinguished status of being classified as “Mega Plant” in the PEPSI
system.
We have an extensive network of Distributors and well-trained sales staff to market and
distribute our products in whole of the southern Punjab, a territory that covers almost
150,000 Sq.k.m. we cater a population of over twenty million people through more then
22000 outlets out of which 14,000 are exclusively Pepsi cola sellers. We provide a
complete business package to our retailers including horizontal and vertical bottle
coolers, point of purchase advertising, cash credit, etc.
Shamim & Co. Pepsi Cola Multan is currently enjoying 85% market share in the
franchise which is the highest for any Pepsi Cola Franchise in the world. We were
declared “Bottler of the Year” in the region for outstanding performance.
We plan to continue with our business traditions in the future.
Organizational Structure
Internship program
During my six week internship program, I was moved through following departments:
1. Accounts Co-ordination Department
2. Human Resource Department
3. Supply chain Department
4. Managements Accounts Department
5. Finance Department
6. Audit Department
Accounts coordination department
My Ist week was in the accounts coordination department.
what is Account Coordination Dept?
Collection of all payment from all dept except admin dept to makeo Collection of bills from the coordinator of concerned dept
Function of department:
This department is basically a service department.
The goal of the department is to make the payment of payable to supplier and others
timely through a proper channel.
Supplier submits its Bill to respective department and that department sends it to Account
Co-Ordination department.
This department verified each bill and cross checking is made with account department.
further To maintain complete record of bills received and payment received. To make payment on the base of urgencies and priorities. Verification of completeness and correct payment received. Collection of cash voucher, pay order, checks and Demand Draft from account dept and
the concerned person, employees or suppliers General Manager Finance keep eye on all process Accounts coordination dept resolves all the queries, problem, issues pertaining
regarding /related to payment Accounts Coordination dept contacts to the GM Finance in case of Major error /Problem
in payment All suppliers and coordinators staff will contact in accounts coordination through phone
calls for information regarding their pay Accounts coordination act as a Call Center , Suppliers and employee services officer Accounts coordinator dept prepares daily payment reports of payment made to the
suppliers and employers separately. These reports shows the performance of Accounts Coordination’s Department time taken in making payment by Account Dept
Accounts coordination Dept maintains complete records of Budget of all dept except Admin
In case of after receiving any discrepancy in document Accounts Coordination dept will immediately referred it to the coordinator of concerned dept
Payment make urgent by dept GM should be given the priority over routine payment and these payment should be made immediately
In case of, if changes are needed in claimant of urgent payment and change is not possible on the same day. The payment will be made and change will be completely later.
Mr. Khurm Shazad and Mr. Abdur Rehman look after the production budget.
For production budget the main concern is the machinery maintenance. Because a working
machinery is very much important for production. These includes
Daily/Routine maintenance budget
Seasonal/Annual maintenance budget
New machinery budget
Mr. Haider Shah and Mr. Kashan Mehmod are concerning with the sales budget.
This budget includes
Publicity budget ( Banners, posters, gift, paint)
TA ( Traveling Allowance)
DA ( Daily Allowance )
TOT ( Tools of Trade)
Department expenditure
Insurance Payment
In the beginning large budget is approved from the Managing Director Alamgeer Khan Tareen.
These payments subtracted from annual expenditure and production budget.
My activities in accounts coordination department
Mr. Khurram Shahzad and his team cooperated with me very much. I worked mostly with Mr.
Haider Ali Abidi. I learnt there how to give exclusive rights to their distributors. How they do
make agreements with them. I learnt how they maintain records of production budget and sales
budget etc.
Audit department
My 2n week was in the “Audit Department” of “Shamim & CO (Pvt) Ltd Multan” This
department audits the empty Glass bottles, empty shells, Pallets on daily, weekly and monthly
basis. The department also control and maintain the record of “Khanpur Depot”.
This department is interlinked with the Management Account.
Function of Department:
There are two types of empty in factory.
Production empty at factory
Shipping empty at factory
In this department
Audit of MIS department
Audit of empty Glass bottles, empty shells, Pallets on daily and monthly basis.
They daily verified the empty of shipping and production department.
Verification of empty stock and liquid filled stock is also made.
The department also control and maintain the record of “ Khanpur Depot”
Daily reporting of sale, cash and expense are made.
Check the availability of empty bottles to meet the demand of production.
Accurately verified the empty of shipping and production.
Check whether empty is short and excess.
Daily report are made and matched with the production and shipping department.
Plastic shell, Pallets verification are also made regularly
Verification of empty of different depot.
Finance department
My 3rd week was in the finance department. This department is under the supervision of
Mr. Shoaib Tirmazi. This department looks after the insurance of all the Assets of
Organization. Leasing like direct leasing and sales and lease back.
Letter of credit like Irrecoverable LC and Irrecoverable and Confirmed LC.
Clearance of shipment is also comes under this department. Short term and long term
financing too.
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
Departments which come under Finance Departments are
Management Accounts Department
Supply Chain Management Department
Banking and Insurance Departments
Functions of Finance department
Leasing:
There are two type of leasing
Direct leasing
Sales and lease back
Direct leasing: Suppose you want to buy a new asset (Machinery). You go to bank ask him to
purchase on the behalf of you and bank make the payment. You take that asset from bank on
lease. You make the payment to bank in Installment with mark up. At the end asset will be your
when you pay all the installment of that Machinery.
Sales and Lease back: You sale your working asset to bank when you need short/long term
finance to fulfill your operating expense or any of the others. You have to make the payment to
bank in installment with mark up/interest. After the complete payment assets again come under
the organization ownership.
Letter of Credit:
There are many types of Letter of Credit
Irrevocable Letter of Credit
Revocable Letter of Credit
Confirmed Letter of Credit
Un-Confirmed Letter of Credit
Modes of payment:
By Sight Payment
By Acceptance
BY SIGHT PAYMENT:
When shipment is delivered to buyer
Supplier submit complete documentation to bank
Bank inform the buyer through the letter or simply calling it
Then buyer has to make the payment to beneficiaries
LC Procedure:
Letter of Credit can be local/Inland or for foreign supplier
Only difference between local and foreign LC is that for foreign LC Import Form or
Export Form is submitted by bank to State Bank of Pakistan while in local it’s not
submitted.
In Import/Export Form detail of goods, quantity and prices are mentioned.
Organization want to buy raw material, machinery etc from supplier
Organization contact the supplier
Supplier send detail of requirement with the rates
Supplier demand for letter of credit
Buyer sends a request to its bank along with the detail document of buying material,
quantity and price.
Bank make the letter of credit
Send it to buyer and seller
Shipment Clearance procedure:
For clearance original document are require. These document include
Commercial Invoice
Air Way bill or bill of lading
Packing list
For clearance purpose organization higher an Agent.
Agent go to custom house and told them that he be authorized by part
Show them the original document.
After this there are some duties and charges on shipment like
Custom duty
Excise duty
Delivery order charges
Port charges(by sea)
Air port charges(by air) good own rent
Agent own service charges
Then Agent sends detail of charges for each above. Organization makes the draft for each
according to Agent. Confirmation for each is received from Agent that all payment is made
truthfully. Foreign companies have their Agent in Pak (Karachi etc).
My activities in finance department
In finance department I learnt about leasing, insurance procedures and shipment clearance procedures etc.
Management accounts department
My 4th week was in the management accounts department. This department is working very
efficiently under the leadership of Mr. Asim. He is the manager of this department. This
department is very well established and having devoted workers.
Function of this department:
This department prepares almost more than 57 reports.
Receive data from different department to prepare these reports like shipping, production,
MIS.
These reports are send to MD (Managing Director), GM Sales and GM Finance etc to
evaluate the performance.
While making these reports they convert all brands into standard 250ML.
Reports prepared by this department:
Shipping department:
Daily load comparison report
Filled stock position
Through put report
Production Reports:
Daily raw material reports
Daily CO2 Comparison report
Plant wise yield report
Daily shift wise yield report
Daily 250ML Production losses
Batch Consumption Report
General Reports:
Labor cost tracking report
Daily permanent staff overtime
Diesel consumption and comparative summaries
My activities in management accounts department
I worked with them to prepare many reports which are prepared on daily and shift wise basis. For
example these reports include daily losses reports, daily yield reports, Production gernator
efficiency report, CO2 consumption report, loading report and etc. I learnt how to calculate the
stock, How the measure the quantity which is loaded out.
Supply Chain & Insurance department
My 5th week was in Supply chain & Insurance department. This department is working under the
supervision of Mr. Abdul Qadir (Assistant Manager of Supply Chain)
Function of department:
Mr.AbdulQadir has been performing his job very efficiently.
He himself set the target of raw material and approve it to CFO (Chief Finance Officer) Mr.Sohail Butt and GM Plant Mr. Sarwar.
While looking at the current requirements he set the target for future
o Cash flow.o Required raw material quantity.
He looks after the procurement of raw material
These raw material include
Labels
Plastic Bottles
Glass Bottles
Glue
Pallets and shells
Cartons
Layer Pad
Case Pad
Crowns
Caps
Perform
CO2
Function of department:
Make the timely availability of raw material purpose.
Make the timely payment to supplier.
Build good links with the supplier.
Planning of future raw material.
Availability of raw material for future at least 1 month.
Future target is set like Initial+ X% Growth.
Insurance:
Mr Usman is performing his duties in Insurance. General type of insurance
Marine Insurance
Life Insurance (State Life Insurance)
Vehicle Insurance
Fire Insurance(Askari insurance)
Insurance of Shamim & Co. (Pvt) Ltd Multan.
Insurance of all the assets of Shamim & Co. (Pvt) Ltd Multan.
These assets includes
o Machinery
o Building
o Stock ( Empty & Liquid )
Human Resource Department
The department of Human resource is working efficiently in the company. This department deals
mainly with a significant asset of the organization namely human resource. Miss Parsa Habib is
manager of this department. Mr. Muhammad Afzal and Mr. Muhammad Tahir are coordinating
her.
Human Resource department is one of most important part of any organization which performs
the activities for staffing the organization and sustaining high employee performance. The
Human Resource mfg. process is as follow.
The basic functions of this department are
Job Analysis:
Preparation and collection of applicant’s info
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
Job analysis:
First of all information about the jobs are collected and then deciding what level of
employee is needed to perform the job. Either is a manager level, executive, officer or
junior officer level.
For Managers and AMs Level 1
For Executives Level 2
For Officers Level 3
For Junior Officers Level 4
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.
Recruitment Process:
After collection of CVs a test is conducted. For all four levels there are different types of
tests available. This test can be online test (through software)and can be written by the
Madam. If the applicant passes the test then a realistic job preview is done. In which the
applicant is shown the job environment and responsibilities.
After the RJP further interviews are collected.
The manager of HR takes 1st interview. It is an unstructured type of interview.
The manager of respected department takes 2nd interview. This is a structured
interview.
After this GM and a panel of mangers take a 3rd interview. This interview is optional.
Sometime it is taken and sometime not. It depends upon the level of job.
Recruitment procedure
Major sources of potential job candidates are
Internal Search Advertisement Employees Referrals School placement Selection devices used for selection of graduates, masters & MBSs are Interviews for worker level job where qualification and skill requirement is low, this formal
procedure is not adopted rather candidates abilities are fledged by department head and sent to factory manager for approval. Orientation is the introduction of new into his or her job & the organization. This is for few selected persons in NBC training is generally on the job employees in all departments are bearing by the time or with the help of seniors.
The organization provides compensation benefits to its employees such as:
Accommodation Holidays 14 Annual 10 Casual 16 Medical with 112 pay. Annual pay Increment & bonus. Medical facility Time office maintains personal file of each employee, daily attendance, leaves, incentives &
commission etc., job descriptions and organizational charth are available for all employees. Employees are rotated from one department/post to other on request or when required. Payroll system.
Process of Recruitment and Selection Chart
CV acceptance Qualification
Written Test If Qualified RJP
Demand generation
By respective dept Experience
3rd Interview 2nd interview 1st Interview
Panel interview By Manager of by team tracking Manager
With GM Respected Dept
Final selection Joining
Final Selection:
After clearing all interviews final selection is made.
Placement:
Then employee is placed on his job.
Specifying jobs and roles:
When the new employees are hired the HR department specifies the job and the role of
the new employee in the organization, which he will play in the future. In other words
job specification and HR department does job description
Training:
Then employee is trained. For this purpose On the job training is used.
Evaluation:
Evaluation of employees is done by seniors or Manager. Evaluation is done on monthly
basis.
Performance appraisal and Feed Back:
For appraisal and feedback company uses
360 degree rule or Pair performance Management by objective
360 feedback or Pair performance:In Pair performance employees of each level are involved e.g. junior with senior, senior with junior, and manager with junior. Management by objective:
Evaluation of subordinates is done only by the Managers.Through 3 Quarters:January to April May to AugustSeptember to December
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.
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.
Preventing violence in the workplace:
Due to the good policies of the Shamim & Co. there are no unions and the HR
department is providing the peaceful working environment to the employees by
preventing the violence.
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 the
production department in order to avoid the loss.
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.
Bonus:
Bonus is given for each year to permanent employees , Employees who stay with the
company for one year entitled for the bonus, Generally bonus is given in the mid of June or
End of June.
My activities in HR department
I worked with Mr. Afzal and Mr. Tahir in this department. They helped me out to learn, how
they select and hire new employees
I also learnt how they are managing all departments.
Applied
Applications of classroom learning in the organization
I applied different concepts, which I learnt in my classes. For example
Hiring and selection
Interviewing new employees
Supply and distribution channels
Customer relationship
Planning
Leading
Controlling
Marketing
Promotion
Career Path
General Manager
Assistant General Manager
Manager
Analyst
Assistant Manager
Executive
Sales offices
Junior officer
Profile of Employees:
Total employees in the Shamim & Co. are 2000. Out of which 500 are permanent and
the remaining are the temporary workers. In the summer season the number of the
temporary workers increases, who are lay off at the end of the season. These temporary
workers are usually unskilled and work as helpers.
In Shamim & Co. Pepsi Cola Multan about 90 employees are working in sales
department and they are all permanent employees that includes GM Sales 5 number
Divisional Sales Managers 3 Regional Sales Managers 10 Area Sales Managers 1 Key
Accounts Manager equivalent to RSM 1 MSM equivalent to ASM (Area Sales
Manager) and about 19 Sales Officers and 50 Sales Supervisors.
Workforce
PermanentWorkers
Temporary Workers
1500500
Product Line:
The major brand of Shamim & Co. Pepsi Cola Multan is Pepsi 250 ml, having highest
market share which is 47% as compared to other brands. The other brands produced by
the organization are
Pepsi
Mirinda
Pepsi diet
7up
7up diet
Mountain dew
Management:
Managing Director
Mr Alamgir Khan Tareen
He is the owner of this company and final operational authority to manage all the
departments of the company. All departments’ heads are responsible to report him all
about their performances and matters.
General Manager Sales & Marketing
Mr Amir Hameed
General Manager Sales and marketing is responsible for the performance of his
department and to achieve the objectives assign him such as marketing, sales,
distribution. To carry out his duties more efficiently he has two Divisional Managers,
Four regional Managers & 18 Area sales Manager.
General Manager Finance
Mr Sohail Butt
Finance, accounts, audit and MIS departments work under his control. He is responsible
to make major company financial policies to meet the needs of each and every
department regarding budgets etc.
General Manager Plant
Mr Sarwar
SWOT Analysis
The overall evaluation of the company’s strength, weaknesses, opportunities and threats
is called SWOT Analysis. In general business unit should set up a marketing
intelligence system to track trends and important development.
Market Opportunity
A market opportunity is an area of buy need in which a company can perform
profitability.
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.
Strength
The marketing financial manufacturing and organization competencies of an
organization
and its resources a considered its strength.
Weaknesses
The extent to which an organization is failed to get competitive advantages in a
dynamic
environment.
STRENGTHS:
High brand image and customer loyalty
Pepsi is currently the market leader with more than 82% of market share
Inspection of quality is regularly performed by Country Office to insure consistent
quality products.
Effective and efficient management of distribution channel allows Pepsi Multan to cover
a huge geographical area.
On site training of 4 to 6 months enables plant engineers to manage plant operations
effectively so that machine downtime is reduced to minimal.
Very huge production capacity 500,000 per day.
Pepsi provides its own transport to distributors to cover those geographical areas where
competitors are not distributing their products because of difficulties to reach there.
Suppliers are bound to supply material on the terms and conditions specified by PEPSI
Strong coordination between different departments
They have their own R&D department which is responsible for conducting market
research
They are proactive in their competitive strategies.
They are having more than one supplier for a particular material to avoid stock outs in
case of high demand or supplier’s inability to ship material.
Daily revision of production schedule based on daily demand.
They are financially very strong and require no financial help from country office
Their plants are capable of producing round the clock.
They offer attractive margins to the distributors, so distributors are willing to carry PEPSI
brands
They have a recovery department which is responsible for the collection of bad debts and
identifying sales of low graded PEPSI.
Weaknesses:
Poor feed back from employees
Insufficient salaries
Loading and unloading of trucks can take place only in the night because of the law
permitting trucks to enter into urban areas only in the night.
Factory is located in the residential areas with no proper parking arrangements for its
vehicles.
No involvement of lower level subordinates in decision making.
Opportunities:
Because of high customer loyalty and brand image new brands can gain customer
preference very soon.
There is high market growth opportunity
Country office is responsible for national add campaigns which facilitate PEPSI Multan
to enjoy the benefits of integrated advertisements.
New brand introduction
Low cost skilled person availability
Strong consumer commitment with Pepsi.
Opening of new outlets
Strong consumer commitment with PEPSI
New generation like PEPSI
Due to new hotels, entertainment places it is use here.
Coverage improvements
New style management
New brand introduction
Low cost skilled person availability
Image of good task
Threats:
Coca- Cola is on its way to get market share
Amrat and Makka cola also trying to get market share
Changes in consumer purchasing power
Increase in competition
Inflation
Due to blame of religious group
No proper employee’s orientation programs
After getting the skills many employees run away due to pay.
Growth of lemon industry
Rapid changes in demand due to seasonal reason
Suggestions
On the basis of SWOT analysis I observed that shamim & Co. Multan is working in a very well
manner. But I think they are lagging in some areas. So they need to improvement in some aeas. I
have following suggestions to cope with their weakness and threats and take competitive
advantage of theor strengths and opportunities.
Taste
As the climate of Pakistan particularly Multan is very hot. The people were like sweet soft drinks
as that of Coca-Cola. So there is a need to have slightly sweet drinks.
Promotional Schemes
Most o schemes introduce by the Pepsi cola are standardized for all the regions. But the
organization should recognize the differences in different regions and then launch the schemes to
get feedback.
Rules & Regulation
Implementation of rules should be make sure in the organization at any cost. Some policies need
to be redefined.
Islamic Activities
There is the perception that Pepsi cola is the Jewish company and it facilitates Israel. The people
who believes & don’t like to drink. So it can be reduce by adding Islamic valued in the
promotional campaigns.
Motivation
The employees should be motivated to be loyal with the organization. It can be in the form of
incentives and free sampling.
Online Linkage
All the plants and distributors should be online to increase efficiency.
Conclusion:
Shamim & Co showing profits since last 5years and according to it’s annul reports its
profit is increasing.
Shamim & Co having 85%market share currently and market leader in Multan.
Shamim & Co focusing on continuous expansion especially in fixed assets like building
and installing plant.
The purpose of expansion is to increase its share.
Committed staff is the main reason that it captures more than 85% share of market share.
A very well-establish distribution network covering whole of the franchise areas.
Company has invested too much money in shape of coolers, visi coolers, counters and
cabin.
Very good working environment in each department.
Very hard working and responsible staff.
Good inter relations among employees. Employees are very friendly to each other.
Each department is using available resources properly.
Each department’s manager has good power to control, coordinate and communicate
with its staff. They have well organized their respected department.