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Shamim & Co. limited Multan Submitted By M.Faheem Asghar Submitted to Pepsi

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Page 1: Faheem Internship Report Pepsi - Copy

Shamim & Co. limited Multan

Submitted By M.Faheem Asghar

Submitted to Pepsi

Page 2: Faheem Internship Report Pepsi - Copy

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

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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

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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.

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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.

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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.”

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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.

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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.

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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.

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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.

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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.

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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

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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

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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

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1986 Dew it Country Cool. (Diet Dew also introduced this year)

1992 Get Vertical

2008 Do The Dew

MISSION STATEMENT

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"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

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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.

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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:

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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.

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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

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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.

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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.

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Organizational Structure

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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

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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.

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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

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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

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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.

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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:

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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

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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.

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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

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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.

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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

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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 )

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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

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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.

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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.

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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

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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

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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.

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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

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General Manager

Assistant General Manager

Manager

Analyst

Assistant Manager

Executive

Sales offices

Junior officer

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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

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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.

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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

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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.

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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.

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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

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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

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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.

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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.

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