Murree Brewery Internship Report

MURREE BREWERY Submitted To: MR. NAZIK HUSSAIN In-Charge Internship and Placement Submitted By: M.UMAR HAYAT ABBASI ROLL #: 39, BBA 6th (Morning) Session (2007-2011) Department of Management Sciences The Islamia University of Bahawalpur, Pakistan Internship report on Murree Brewery Table of Contents Preface Acknowledgement Dedication Executive Summary Introduction Of Organization History Of Brewery Introduction Of Organization History Board of Directors Introduction Pakistan’s only Beer and Whisky firm Management Techniques Mission, Vision And Objectives Of Organization Corporate, Business And Departmental Level Strategies Organizational Structure Social Responsibility Products Production Process Distillary Process Brewery Process NAB Hall Reserve Osmosis Plant Pet Plant (1&2) Botteling Hall Bio Gas Plant TOPS foods and Beverages Quality Policy of TOPS Adverisement/Promotional activities and Demand Creation. ISO 14001 Enviornmental Factors Enviornmental Aspects at Murree Brewery Different Accounting Policies of the Company Financial Analysis SWOT Analysis Work Done By Me Suggestions And Recommendations Conclusion Annexure The Department of Management Sciences Page No. 3 5 6 13 14 17 18 19 22 23 24 27 29 30 38 39 43 46 48 51 54 57 60 64 65 67 70 71 74 76 106 108 109 111 Page 2 Internship report on Murree Brewery Executive Summary The Murree Brewery Company Ltd was established in 1860.It is a Pakistan-based company .Its products are only legally available in Pakistan owing to a prohibition on the exportation of alcohol from Pakistan. The Company is principally engaged in the manufacturing of Pakistan made foreign liquor (PMFL) including alcoholic beer, non-alcoholic beer (NAB), non-alcoholic products (NAP), which includes juices in tetra packs in Rawalpindi and food products, juices, glass bottles and jars in Hattar. Murree Brewery Company Limited operates in three divisions: liquor division, which includes PMFL, alcoholic beer, NAB, Big Apple, Lemonade, Cindy and Malt -79; tops division, which includes food products and juices, and glass division, which includes glass bottles and jars. The Murree Brewery Company Ltd has been certified from ISO 9001(Quality Management System).Now they are working on ISO 14001(Environmental Management System). The Murree Brewery is one of the oldest public companies of the sub-continent. Its shares were traded on the Calcutta Stock Exchange as early as 1902, and are now the oldest firm continuing industrial enterprise of Pakistan. Is aimed to have a good quality of products and it is providing different types of liquids to upper class, middle class and low class people. The company believes that whatever we provide to the customers should be the best for them. They should get the maximum satisfaction in this product. The Department of Management Sciences Page 3 Internship report on Murree Brewery This internship program helped me in the polishing of communication skills, a musthave to survive and make it big in the present world. It even gave a good understanding of behavior of customers when placed in different situations. It was a good opportunity to work on the skill of patience, as a large number of customers were to be dealt with. It helped in developing the kind of relations one needs to uphold in the corporate world and it helped in building up the right attitude. The Department of Management Sciences Page 4 Internship report on Murree Brewery Introduction of Organization The Department of Management Sciences Page 5 Internship report on Murree Brewery History of Brewery Beer is one of the world’s oldest beverges. Beer-like beverages were independently invented among various cultures throughout the world. The invention of beer has been argued to be responsible for humanity’s ability to develop technology and build civilization. The earliest known chemical evidence of beer dates to circa 3500-3100 BC from the site of Godine Tepe in the Zagros Mountains of western Iran. Beer produced before the Industrial Revolution continued to be made and sold on a domestic scale, although by the 7th century AD beer was also being produced and sold by European monasteries. During the Industrial Revolution, the production of beer moved from artisanal manufacture to industrial manufacture, and domestic manufacture ceased to be significant by the end of the 19 th century. The development of hydrometers and thermometers changed brewing by allowing the brewer more control of the process, and greater knowledge of the results. Today, the brewing industry is a global business, consisting of several dominant multinational companies and many thousands of smaller producers ranging from brewpubs to regional breweris. Historical documentation shows that around 5,000 years ago, ancient Chinese civilizations were breweing a beer-like substance known as Kui. In ancient Mesopotamia, clay tablets indicate that brewing was a fairly well respected occupation during the time, and that the majority of brewers were women. The discovery that reuse of the same container for fermenting the mash provided more reliable results was an early one: brewers on the move carried their tubs with them. Some types of beers were used especially in relegious ceremonies. In 2,100 BC, the Babylonian King Hammurabi included regulations governing tavern keepers in his law code for the kingdom. Beer drinking accessories, such as mugs, have also been found in Israel, and date back to nearly 2000 BC. The Department of Management Sciences Page 6 Internship report on Murree Brewery Beer was part of the daily diet of Egyptian Pharaohs over 5,000 years ago. Then, it was made from baked barley bread, and was also used in religious practices. The role of beer in Egyptian society was far greater than just a drink. Often, beer was prescribed to treat various illnesses. Beer was considered to be the most proper gift to give to Egyptian Pharaohs and it was also offered as a sacrifice to the gods. The process of brewing beer grew tremendously during the rise of Christianity. This was primarily because of the roles that monks had in the production of beer. Monasteries were some of the first organizations to brew beer as a trade. Monks built breweries as part of their efforts to provide food, shelter and drink to various travelers and pilgrims. A large number of Christian saints are patrons of brewing. Saint Augustine of Hippo, Saint Luke the Evangelist, and Saint Nicholas all are considered to be patrons of brewing. Emperor Charlemagne, the ruler of the Christian kingdom around 770 AD considered beer to be an important part of living, and is often thought to have trained Christian brewers himself. As in ancient times, women were the primary brewers during the middle Ages. Women took over brewing after the monasteries had really established the process. A funerary model of a bakery and brewery, from the Eleventh dynasty of Egypt, circa 2009-1998 BC The Department of Management Sciences Page 7 Internship report on Murree Brewery Early Beers As almost any cereal containing certain sugars can undergo spontaneous fermentation due to wild yeasts in the air, it is possible that beer-like beverages were independently developed throughout the world soon after a tribe or culture had domesticated cereal. Chemical tests of ancient pottery jars reveal that beer was produced about 5,500 years ago in what is today Iran, and was one of the firstknown biological engineering tasks where the biological process of fermentation is used. Also recent archaeological findings showing that Chinese villagers were brewing fermented alcoholic drinks as far back as 7000 BC on small and individual scale, with the production process / methods similar to that of ancient Egypt and Mesopotamia. Beer became vital to all the grain-growing civilizations of Eurasian and North African antiquity, including Egypt—so much so that in 1868 James Death put forward a theory in The Beer of the Bible that the manna from heaven that God gave the Israelites was a bread-based, porridge-like beer called wusa. Medieval Europe Beer was one of the most common drinks during the Middle Ages. It was consumed daily by all social classes in the northern and eastern parts of Europe where grape cultivation was difficult or impossible. Though wine of varying qualities was the most common drink in the south, beer was still popular among the lower classes. Since the purity of water could seldom be guaranteed, alcoholic drinks were a popular choice, having been boiled as part of the brewing process. Beer also provided a considerable amount of the daily calories in the northern regions. In England and the Low Countries, the per capita consumption was 275-300 liters (60-66 gallons) a year by the Late Middle Ages, and beer was downed with every meal Though probably one of the most popular drinks in Europe, beer was disdained by science as being unhealthy, mostly because ancient Greek and more contemporary Arab physicians had little or no experience with the drink. The Department of Management Sciences Page 8 Internship report on Murree Brewery Laws to enforce the use of hops in beer were introduced in England in the 14th century, and later similar laws were introduced in other countries. In England, these laws led to peasant uprisings, since it was considered to spoil the taste, but these uprisings were brutally put down. Early modern Europe In Europe, beer largely remained a homemaker's activity, made in the home in medieval times. The oldest still operating commercial brewery is the Weihenstephan (Bavaria) abbey brewery, which obtained the brewing rights from the nearby town of Freising in 1040. By the 14th and 15th centuries, beermaking was gradually changing from a family-oriented activity to an artisan one, with pubs and monasteries brewing their own beer for mass consumption. In 15th century England, an unhopped beer would have been known as ale, while the use of hops would make it a beer. Hopped beer was imported to England from the Netherlands as early as 1400 in Winchester, and hops were being planted on the island by 1428. The popularity of hops was at first mixed—the Brewers Company of London went so far as to state "no hops, herbs, or other like thing be put into any ale or liquore wherof ale shall be made— but only liquor (water), malt, and yeast." In 1516, William IV, Duke of Bavaria, adopted the Reinheitsgebot (purity law), perhaps the oldest food regulation still in use through the 20th Century (the Reinheitsgebot passed formally from German law in 1987). The Gebot ordered that the ingredients of beer be restricted to water, barley, and hops; yeast was added to the list after Louis Pasteur's discovery in 1857. The Bavarian law was applied throughout Germany as part of the 1871 German unification as the German Empire under Otto von Bismarck, and has since been updated to reflect modern trends in beer brewing. To this day, the Gebot is considered a mark of purity in beers, although this is controversial. Most beers until relatively recent times were top-fermented. Bottom-fermented beers were discovered by accident in the 16th century after beer was stored in cool caverns for long periods; they have since largely outpaced top-fermented beers in terms of volume. The Department of Management Sciences Page 9 Internship report on Murree Brewery The Industrial Revolution Following significant improvements in the efficiency of the steam engine in 1765, industrialization of beer became a reality. Further innovations in the brewing process came about with the introduction of the thermometer in 1760 and hydrometer in 1770, which allowed brewers to increase efficiency and attenuation. Prior to the late 18th century, malt was primarily dried over fires made from wood, charcoal, or straw, and after 1600, from coke. In general, none of these early malts would have been well shielded from the smoke involved in the kilning process, and consequently, early beers would have had a smoky component to their flavors; evidence indicates that maltsters and brewers constantly tried to minimize the smokiness of the finished beer. Writers of the period describe the distinctive taste derived from wood-smoked malts, and the almost universal revulsion it engendered. The smoked beers and ales of the West Country were famous for being undrinkable - locals and the desperate accepted. This is from "Directions for Brewing Malt Liquors" (1700): Modern Beer Many European nations have unbroken brewing traditions dating back to the earliest historical records. Beer is an especially important drink in countries such as Belgium, Germany, Ireland, and the UK, with nations such as France, the Scandinavian countries, the Czech Republic, and others having strong and unique brewing traditions with their own history, characteristic brewing methods, and styles of beer. Unlike in many parts of the world, there is a significant market in Europe (the UK in particular) for beer containing live yeast. These unfiltered, unpasteurised brews are awkward to look after compared to the commonly sold dead beers: live beer quality can suffer with poor care, but many people prefer the taste of a good live beer to a dead one. While beer is usually matured for relatively short times (a few weeks to a few months) compared to wine, some of the stronger so-called real The Department of Management Sciences Page 10 Internship report on Murree Brewery ales have been found to develop character and flavour over the course of as much as several decades. In some parts of the world, breweries that had begun as a family business by Germans or other European émigrés grew into large companies, often passing into hands with more concern for profits than traditions of quality, resulting in a degradation of the product. In 1953, New Zealander Morton W. Coutts developed the technique of continuous fermentation. Coutts patented his process which involves beer flowing through sealed tanks, fermenting under pressure, and never coming into contact with the atmosphere, even when bottled. His process was introduced in the US and UK, but is now used for commercial beer production only in New Zealand. In some reluctant sectors to brewers embrace are new technology for fear of losing the traditional characteristics of their beer. For example Marston's Brewery in Burton on Trent still uses open wooden Burton Union sets for fermentation in order to maintain the quality and flavour of its beers, while Belgium's lambic brewers go so far as to expose their brews to outside air in order to pick up the natural wild yeasts which ferment the wort. Traditional brewing techniques protect the beer from oxidation by maintaining a carbon dioxide blanket over the wort as it ferments into beer. Modern breweries now brew many different types of beer, ranging from ancient styles such as the spontaneously-fermented lambics of Belgium; the lagers, dark beers, wheat beers and more of Germany; the UK's stouts, milds, pale ales, bitters, golden ale and new modern American creations such as Chili Beer, Cream Ale, and Double India Pale Ales. The Department of Management Sciences Page 11 Internship report on Murree Brewery Today, the brewing industry is a huge global business, consisting of several multinational companies, and many thousands of smaller producers ranging from brewpubs to regional breweries. Advances in refrigeration, international and transcontinental shipping, marketing and commerce have resulted in an international marketplace, where the consumer has literally hundreds of choices between various styles of local, regional, national and foreign beers. The next great development occurred in the mid-nineteenth century, through work done by Louis Pasteur, the first to propose an explanation of how yeast worked. Shortly thereafter, samples of Bavarian yeast provided the successful identification of a single-cell and strain of the bottomfermenting lager yeast. German brewers had started to make beer by lagering (storing) in 1402. Brewing was not possible in the warm months because wild yeasts prevalent in the warmer weather of summertime would sour the beer. Brewers discovered that brewing in the cold months and storing the beer in caves in the nearby Alps impacted stability to the beer and enhanced it with a cleaner taste, although they did not know why. Today, we know that the reason the beer was clearer and cleaner was due to the fermentation process the beer underwent in the cold, during which the chemicals and bacteria responsible for clouding beer were unable to thrive and were therefore filtered out of the beer. In 1880, there were approximately 2,400 breweries operating in the US embracing many of the classic brewing styles. Today, there are 375 breweries. The change can be traced back to the era of the Volstead Act of 1919 - this Eighteenth Amendment to the Constitution ushered in Prohibition. During this time, the smaller breweries lay idle as the larger establishments limped by with the production of cereal malts and near-beers. Following Prohibition in World War II, with corresponding food shortages and therefore increased substitution of adjuncts for malt - a lighter beer resulted. With a large part of the male population off fighting the war, the work force in America was made up largely of women; thus marketing to this population solidified the hold of a lighter-styled beer. Following the war, the large national breweries catered to the tastes of this expanded beer market. Today, there is a revolution in America as brewing returns to its roots, and a great variety of high-quality beers are being revived, imported and enjoyed! The Department of Management Sciences Page 12 Internship report on Murree Brewery Introduction of Organization The Department of Management Sciences Page 13 Internship report on Murree Brewery History Consequent to the British annexation of the Punjab in 1849 from sikh rule, and more so after 1857 when the British Crown formally extended its sovereignty over india, a structured administration commenced in the Punab. To meet the beer requirements of British personnel (mainly army), the Murree Brewery was established in 1860 and incorporated a year later at Ghora Galli, located in Pir Punjal range of the Western Himalyas at an elevation of 6000’ above sea level, near the resort town of murree. Between 1885 & 1890 the company established Breweries in Rawalpindi & Quetta & acquired an interest in the Oticumand (South India) & Norailiya (ceylon) breweris. A distillery was also established in the above period in Rawalpindi next to the Brewery. The Murree Brewery at Ghora Galli was therefore among the first modern beer breweries established in Asia. Murree Beer proved to be very popular among the British troopers who were largerly barracked in tha ‘Galis’ of these hills. The virtues of the beer brewed form barley malt & hos as a light alcoholic beverage were not lost on the local population who rapidly became avid consumers. By the turn of the 20 century, the name “Murree” was famous for its beer in Keg and bottle in the bars, beer halls and army messes of British India. Murree Beer was first awarded a medal for product excellence at the Philadelphia Exhibition in 1876, followed by numerous awards over the past 140 years. In 1935, a massive earthquake totally demolished the Quetta brewery as well as substantial part of Quetta town, killing thousands of persons, including a number of our employees. At Ghora Galli (Murree), the scarcity of water became an emerging problem. By the 1920s, brewing was mostly transferred to the Rawalpindi brewery but malting continued at Ghora Galli till the 1940s, when this property was sold. The historic brewery built in Gothic style architecture was burnt during the partition riots of 1947/48. The Department of Management Sciences Page 14 Internship report on Murree Brewery Park Lodge a handsome resedential property was purchased by the company from Mrs. H. Whymper in 1888. It was the principal residence and head office of the company till 1959, when it was taken by the Government of Pakistan to house the office of the President of Pakistan. It remains an office of the Head of State of Pakistan from 1960 till the present day. The original brewery was founded by two closely connected english families. Edward Dyer was the first General Manager of the Company. He was also the founder of the Dyer Meaken breweries, Simla hills. Edward Whymper, a member of this family was the first person to climb Matterhorn mountain in 1865. The Rawalpindi brewery is blessed with deep aquifers of good watter. A railway siding was extended to the premises in the 19th century, which is now derelict. Under the present prohibition law, only non-Muslims and foreigners are permitted to consume alcohol. Notwithstanding the consequent reduction in demand, the Company decided as policy to concentrate on product excellence. It was decided to modernize the plants. A Ziemann (German) brew house was installed in 1967, 'Saladin' Box Melting’s in 1971. Also in the late sixties, it was decided to embark on an ambitious long-term program to mature Malt Whiskies. Over the past four decades white oak casks and vats have been procured from North America, Australia and Spain Our two underground cellars now hold over half a million liters of Malt Whisky for varying periods of maturation up to 12 years under controlled temperature conditions. Another wave of modernization was undertaken in the 1990s. New beer canning and modern bottle filling facility from Holstein and Kappert (Germany) was installed. Two units of alcohol rectification columns for producing extra neutral grade of potable alcohol from Molasses were procured from France and Italy, respectively, to give our Vodkas and Gins a qualitative edge. Also in this period, the beer fermentation capacities were renewed. It is pertinent to point out that our basic beer fermentation system installed in the 1930s was then at the cutting edge of this technology. Known at the time as the Nathan system, it incorporates fermentation and the laagering of beer in a single double jacketed vessel. A variation of this system is now in extensive use worldwide. The Department of Management Sciences Page 15 Internship report on Murree Brewery Tops Food and Beverages a division of the Company was established in 1969. It processes fruits and markets fruit juices and allied food products. Two manufacturing units are located in Rawalpindi and Hattar (NWFP) respectively. A Tetra Pak packaging facility was added in 2001. The Hattar plant was installed in 1992. The plant is based on a Recuperative Melter and two Emhart I.S. container manufacturing machines and has the latest quality control equipment for online inspection of containers. The Murree Brewery is one of the oldest public companies of the sub-continent. Its shares were traded on the Calcutta Stock Exchange as early as 1902, and are now the oldest continuing industrial enterprise of Pakistan. In 1997-1998 and 1998-1999, we were judged among the top 25 performing public companies by the Karachi Stock Exchange. The Department of Management Sciences Page 16 Internship report on Murree Brewery Board of Directors Chairman Mr. Khurram Muzaffar Chief Executive Mr. Isphanyar M. Bhandara Mr. M. M. Shahbaz Mr. Asadullah Khawaja Ch. Mueen Afzal Mr. Aamir H. Sherazi Mrs. Goshi M. Bhandara PRINCIPAL OFFICERS Company Secretary Mr. M. Zaffar Iqbal Chief Financial Officer Kh. Mushtaq Ahmed, FCA General Manager (Brewery Division) Mr. Mohammad Javed Director (Glass Division) Mr. M. M. Shahbaz Acting General Manager (Tops) Major ® Sabih-ur-Rehman AUDIT COMMITTEE Mr. Khurram Muzaffar (Chairman) Ch. Mueen Afzal (Member) Mrs. Goshi M. Bhandara (Member) AUDITORS PRINCIPAL BANKERS M/s KPMG Taseer Hadi & Co. Bank Alfalah Ltd, Rawalpindi Chartered Accountants Standard Chartered Bank, Rawalpindi/Lahore th 6 Floor, State Life Bldg, Askari Commercial Bank Ltd, Rawalpindi Jinnah Avenue, Islamabad. National Bank of Pakistan, Rawalpindi/Hattar The Bank of Khyber,Hattar. Allied Bank Ltd, Lahore / Gujranwala. The Department of Management Sciences Page 17 Internship report on Murree Brewery Introduction Murree Brewery is the maker of Pakistan's premier beer brand known Murree Beer. Its products are only legally available in Pakistan owing to a prohibition on the exportation of alcohol from Pakistan. The brewery has two manufacturing units located in Rawalpindi and Hattar (North-West Frontier Province). In 1977 the Murree Brewery suffered a significant setback when Zulfiqar Ali Bhutto imposed a total prohibition in Pakistan, to appease Islamic elements of the electorate. Subsequently the government of General Zia-ul-Haq amended this law, requiring anyone wishing to consume alcohol to present credentials demonstrating that they were non-Muslim. The small Christian, Hindu and Parsi communities were not large enough to support the enterprise, and production had to be scaled back. However, gradual relaxation of the prohibition laws has allowed Murree to introduce variations of Murree beer, vodka, gin and whisky. Today, all Murree products are readily available in legal liquor shops that operate openly in Karachi in places like Zamzama and Defense. It is also available in the interior of Sindh. Although the consumption of alcohol in public is still nominally banned, it is becoming increasingly available in clubs and high-class restaurants. Murree Beer was initially being produced in Austria for European markets and was available in various Pakistani and Indian restaurants, an enterprise which has since ceased since 2004. The Murree Brewery is one of the oldest public companies of the sub-continent. Its shares were traded on the Calcutta Stock Exchange as early as 1902, and are now the oldest continuing industrial enterprise of Pakistan and among the top 25 performing public companies by the Karachi Stock Exchange. The Department of Management Sciences Page 18 Internship report on Murree Brewery Murree's biggest competitor is the Quetta Distillery and its products have to increasingly vie with smuggled brands from the West and India. Pakistan’s only Beer’s and Whisky firm Understandably, making beer and whiskey in a Muslim country, where 97 per cent of the population is officially banned from enjoying your products, has never been an easy business. NonMuslims are exempt from the ban, but even for them getting a drink can be complicated: some fivestar hotels require foreigners to affirm in writing that they are non-Muslims and will be responsible for anything that happens when they are under the influence before they can order a drink. And amid the upsurge of militant violence of the last two years that has seen the Taliban attacking targets across the country, setting fire to girls' schools and even banning the sale of videos and DVDs, common sense might suggest that the fortunes of this establishment, which celebrates its 150th anniversary next year, might be on the wane. Yet the opposite is happening: sales are booming – embarrassingly so. "Sales are good," said Isphanyar Bhandara, the brewery's 36-year-old chief executive, "but we don't want to shout about it because that also brings negative publicity and criticism, because this is a Muslim country – and yet sales are growing." Pervaded by a rich smell of fermenting yeast and equipped with Victorian maturing cellars, the brewery is located in the heart of the military cantonment area of Rawalpindi, the garrison city where 30 people died in a suicide bomb attack earlier this week. The scenes within the thick stone walls are reminiscent of a British brewery of the remote past. Located opposite the residence of the Chief of the Army Staff, the brewery says it has never received a direct threat from the militants. Metaphorically speaking, the Murree brewery sits on one of the major fault lines of Pakistan's often contradictory society. While Muslims have been banned from buying or drinking alcohol since 1977, few private social gatherings among the country's political or business élite take place without the lubrication of liquor. A well-established network of bootleggers dealing in both locally The Department of Management Sciences Page 19 Internship report on Murree Brewery produced and smuggled alcohol ensures that, while bars do not exist except for a couple of gloomy premises in five-star hotels, a drink in a private home is never far away. For an institution such as the brewery, this two-faced attitude towards alcohol has meant several things. Firstly, while Christians, Hindus, Zoroastrians and other non-Muslims officially constitute its customers, there is a private acknowledgement that the vast majority of drinkers are Muslims who work their way through the easily exploited permit system. Non-Muslims and foreigners can get an official permit allowing them to buy 30 bottles of beer or a quart of spirits every month. Reports suggest that such permits are easy both to copy and to obtain fraudulently. At the same time, the brewery and distillery have to operate within a set of cramping rules. They are not allowed to advertise their products, for instance, and they have yet to be given permission to export them. The Islamic Ideology Council of Pakistan, which advises the government on policy issues, has made clear that it believes the export of alcohol abroad would damage the country's international image. The council's secretary Riaz-ur-Rehman confirmed: "We cannot allow anyone in the country to be engaged in the trade or production of alcohol." Meanwhile, the company, which earlier this year produced the Muslim world's first 20-year-old malt, provides the state and federal authorities with around $1m (£604,000) a month in taxes and duty. "Absurd as it sounds, it's true," said Mr. Bhandara, who is a member of Pakistan's tiny population of Zoroastrians or Parsis and is also, ironically, a teetotaler, even though he is permitted to drink because of his religion. "It's totally hypocritical. I'm talking to the government at the moment about permission to export our beer to Britain [where it would be marketed with the catchphrase 'Have a Murree with your curry'], as many Asians in Britain are familiar with our products. Carlsberg were going to brew and sell it in the UK but then they said the beer market was shrinking. I am saying to them we have a 20 per cent increase in beer sales year-on-year in a Muslim country." The Murree Brewery, shares of which are publicly traded on the Pakistan stock exchange in Karachi, was initially established in 1860 among the woods and cooling breezes of the Murree Hills, 20 miles north of Islamabad, where the elevation of 6,000ft was perfect for producing light beer for British colonial troops. Growing demand for its award-winning products saw the company The Department of Management Sciences Page 20 Internship report on Murree Brewery establish additional breweries in Quetta in 1886 and in Rawalpindi in 1889, the site of the current operation. On a recent morning, bright with early winter sunshine, Jamshed Iqbal, the company's enthusiastic quality control manager, led The Independent on a tour of the facilities. "Making liquor is easy, but brewing beer is an art," he said, describing the challenges of temperature control in a region where the summer mercury can top 45C. Part of his duties includes checking the taste of the finished products to ensure consistency. He said he believed the company's "classic" lager had the best taste. But as a Muslim, was he allowed to taste it? "Just a mouthful," he replied. The Department of Management Sciences Page 21 Internship report on Murree Brewery Management Techniques Consensus based process Board meeting at different points of time Annual meetings Specialized professional team Incentives and bonus Adjustable environment and discipline The Department of Management Sciences Page 22 Internship report on Murree Brewery Mission and Vision Statement To fulfill customer requirements & expectations through CARE Contionous improvement Alignment of our missions and goals Responsibility and respect of our jobs and each other Educate one another We the people of Murree Brewery Co. make personal commitment to first understand our customer’s requirement then to meet & exceed their expectations, by performing the correct tasks on time and every time through. MOTTO We respect our past. We are the industry leaders in present and accept the challenge of the future. The Department of Management Sciences Page 23 Internship report on Murree Brewery Corporate, Business and Departmental level Starategeis Marketing strategy of the company is based on the folloeing points:  First come to know about the who are our customers and what are their requirements.  What do we really know about their needs, preferences, behavior and their life styles?  What can we offer them... at a price... that other companies do not?  How do we perform in comparison to our competitors?  How are we currently performing for our customers?  Where are the gaps, the weak points, the fudges, and the point of excellence... the USPs (Unique Selling points)?  How are we different?  Why are we different?  How can we better delight?  How do we change?  What do we change?  How clever are we with our market intelligence?  How well is our market research working? Consider groups who share a similar need and who will respond in a similar way.  Design a Marketing Strategy  To achieve specific marketing objectives, based (e.g.) on the Marketing mix.  Set Tactical Plans, Budgets, Programs  Assign individual responsibilities to achieve the objectives.  Monitor Progress The Department of Management Sciences Page 24 Internship report on Murree Brewery Product Strategy Murree brewery is aimed to have a good quality of products and it is providing different types of liquids to upper class, middle class and low class people. The company believes that whatever we provide to the customers should be the best for them. They should get the maximum satisfaction in this product. Murree Brewery has launched a new product Big Apple which is now being used at a large scale in the whole country. The company provides Beers to the upper class that has the authority to do so. They have energy drinks and soft drinks. Pricing Strategy Company has 15 different types of juices, which come into jars, bottles and packs. They have to maintain a price which is affordable to the customers and which is profitable to them, it appears that they have position their product pricing in such a way that their main focus is middle and upper middle class. However, they have some selected range for upper class as well. Promotion Strategy They believe that print media and outdoor activity help them to reach to their target customer. Due to satellite transmission and having multi channels, it does not pay one unless you have very huge budget to spend on this media. On promotion, their spending is more on putting banners on the roads, on bridges and sometimes on the newspapers. Since it pays them and there is direct relationship between sales and consumer. The Department of Management Sciences Page 25 Internship report on Murree Brewery Distribution Strategy TOPS have nationwide users so they have to arrange dealers in the every city. They have their branch offices in Karachi, Lahore, Islamabad, Faisalabad and all the major cities of Pakistan so that one can get easy delivery of their product easily in every city or village of country. Provide quick and timely delivery to their dealers: they have got big warehouses located in almost all big cities and towns. Whenever they get order from the dealer they try to provide supplies to their dealer from closest warehouse. They believe that, timely delivery of their product to the dealer is one of an important element in their success in Pakistan. Product Life Cycle It is one of their missions to provide quality product to their customers. Therefore, they ensure that every product, which is delivered from their factory, must go through rigorous quality check. So that only perfect product, free from any defect is delivered to their customers. “So, when it is delivered to the customer, it must meet customer's expectations” The Department of Management Sciences Page 26 Internship report on Murree Brewery Organizational Sructure Computer programmer Supervisor CFO CA Distiller Customer Manager Assistant Supervisor Workers Technical Manager Assistant Beuru Cheif Executive Supervisor Brewery Assistant Supervisor Workers GM Supervisor Workshop Assistant Supervisor Workers Cheif Engineer Supervisor Security Incharge Presentive Maintainance Engineer Assistant Supervisor M(HR) Workers The Department of Management Sciences Page 27 Internship report on Murree Brewery Corporate Information Board of Directors Chairman Mr. Khurram Muzaffar Chief Executive Mr. Isphanyar M. Bhandara Mr. M. M. Shahbaz Mr. Asadullah Khawaja Ch. Mueen Afzal Mr. Aamir H. Sherazi Mrs. Goshi M. Bhandara PRINCIPAL OFFICERS Company Secretary Mr. M. Zaffar Iqbal Chief Financial Officer Kh. Mushtaq Ahmed, FCA General Manager (Brewery Division) Mr. Mohammad Javed Director (Glass Division) Mr. M. M. Shahbaz Acting General Manager (Tops) Major ® Sabih-ur-Rehman AUDIT COMMITTEE Mr. Khurram Muzaffar (Chairman) Ch. Mueen Afzal (Member) Mrs. Goshi M. Bhandara (Member) AUDITORS PRINCIPAL BANKERS M/s KPMG Taseer Hadi & Co. Bank Alfalah Ltd, Rawalpindi Chartered Accountants Standard Chartered Bank, Rawalpindi/Lahore th 6 Floor, State Life Bldg, Askari Commercial Bank Ltd, Rawalpindi Jinnah Avenue, Islamabad. National Bank of Pakistan, Rawalpindi/Hattar The Bank of Khyber, Hattar Allied Bank Ltd, Lahore / Gujranwala The Department of Management Sciences Page 28 Internship report on Murree Brewery Social Responsibility They provided area to Govt. of Pakistan in Zia-Ul-Haq era. Also provided place for Govt. Bhandara High School. Place for Golf Club. Dispensary for employees. Provide renovation facilities. Post office for the area people. Benefit to their employees. Provident funds. Pension. Medical fecilities. Insurance. The Department of Management Sciences Page 29 Internship report on Murree Brewery Products of Murree Brewery The Department of Management Sciences Page 30 Internship report on Murree Brewery Products of Murree Brewery The Murree Brewery produces a wide variety of Beer’s, liqour’s and non-alcoholic products. There premium products include Murree’s Millennium Beer, Murree’s Classic Beer, Lite Export Pils, Eight and twelve years old single Malt Whiskies, Vintage with a blend of a Scotch Grain Whisky, Silver Top Gin, Boskaya Vodka And Doctor’s Brandy. Beers: 1) Murree Beer An all time favourite since 1860. Alc. Contents 4.5% v/v. Brewed from local six row barley, malts and bavarian hop products. Has a distinctive taste and flavour. Murree’s Classic Lagger Premium beer, inputs identical to the millenium Beer. Alc 5.5% v/v. A real classic. Smooth on the plate. Taste and flavour close to classic European lagers. The Department of Management Sciences Page 31 Internship report on Murree Brewery 2) Murree’s Millennium Our flagship beer 8% Alc. v/v. Brewed from highest grade Australian malt and hallertau a German Hop products. The millennium is celeberation brew for special occasion 3) Lite Export Pils Is brewed from continental Malts and Hops. A light beer Alc. 3.5% v/v. Correspond in flavour and quality to the famous beer brewed in Pilsen, Czech Republic,. An ideal summer drink. Liqours 1) Murree’s Matured Malt Whiskies Murree’s premium Malt whiskies are brewed from a Barley Malt mash, distilled on traditional pot stills and matured in imported oak wood casks & vats for guaranteed periods specified on respective packaging. Jim Murray, one of England’s best known writers on Scotch Whiskies comments on Murre’s 8 years old classic Malt whisky at page 202 in his “Complete book of Whisky” (1997) as follows: “Not only does Murree’s 8 years old single matured malts compare favourably, it is much better than a lesser Scotch malt, which comes nowhere near matching this whisky’s crisp and delicate maltiness”. Compare in maltiness, character &crispness to any reputed Scottish Malt whisky of equal age. The Department of Management Sciences Page 32 Internship report on Murree Brewery 2) BOLSKAYA VODKA & SILVER TOP GIN Produce under arrangement with Bols international B.V. Netherlands Distilled from extra neutral grade alcohol under arrangement with Bols international BV, Netherlands world famous distillers of fine liquors. 3) MURREE GINS Tower of London Gin is rich in juniper flavour extracted from the juniper berries of the world famous Ziarat juniper forest near Quetta. London Dry Gin is a typical English s\dry gin with a delicate flavour, balanced aromatics and botanicals. Lemo lime & citrus Gins Convey the flavour of citrus fruits. Non Alcoholic Beers (NAB) Malt 79 & cindy malt drinks are brewed from golden barley malt and hops. Ideal thirst quenching summer drinks. Once you get the taste of real grain beverages rich in natural sugars, you will never look back to synthetic colas. Non alcoholic malt drinks are recommended by doctors for a vareity of elements. Our non alcoholic malt drinks our genuine earth drinks. The Department of Management Sciences Page 33 Internship report on Murree Brewery Fizzy Drinks 1) Big Orange Is an all time favourite all season drink. 2) Big Apple Pakistan first corbonated drink. A delight for every Pakistani house hold. 3) Big Lemon The Department of Management Sciences Page 34 Internship report on Murree Brewery There Lemonade are best in Pakistan. MALTS Stawerbry Malt The Department of Management Sciences Page 35 Internship report on Murree Brewery Lemon Malt Peach Malt The Department of Management Sciences Page 36 Internship report on The Department of Management Sciences Murree Brewery Page 37 Internship report on Murree Brewery Production Process The Department of Management Sciences Page 38 Internship report on Murree Brewery Distillary Process The barley is first soaked in water, then spread inside the germination box allowing it to germinate. The germination produces sugar and thus converts the barley into malt. As the germination releases heat, the barley has to be turned regurarly, and the temperature need to be controlled. The malt is then transferred to the kiln, spread over a mesh and dried over a fire. The malt is coarsely ground by roller. In the mash tun it is mixed with hot water at specified temperatures, in which the malt sugars are dissolved. The resulting sweet solution is called wort. Wort is cooled, and yeast is added, while the solid residue of the malt is sold as cattle feed. The temprature is done in vats till a ‘beer’, with around 7-8% alcohol, is formed. Distillation takes place in onion-shaped pot still made from copper. In the first distillation, which takes place in the wash stills, the alcohol fraction is raised to somewhat over 20%. The product, called low wines, the is distilled a second time in spirit stills, which results in a spirit with over 60% alcohol. In distillation process, the first and the last fractions are recycled back for Re-distillation process, while only the middle cut via the spirit safe goes to the spirit store to be filled into barrels. The spirit safe is locked by the Excisemen. By law, the spirit can only be called ‘whisky’ after at least three years of maturation. Usually no new casks are used, but rather the casks are charred before use, which helps to release vanilla from the wood. Once matured, the whisky is bottled. To achieve a more uniform taste, usually many casks are blended. Whisky may also be filtered a t low temperature (about +5 to -5 Celsius) to remove fat particles. And finally it is colored with caramel to achieve a “Uniform Color”. The Department of Management Sciences Page 39 Internship report on Murree Brewery Flow Diagram of Distillation Unit In distillation Unit we prepare Alcohol through fermentation of Molasses The Department of Management Sciences Page 40 Internship report on Murree Brewery Distillation Distillation is a method of separating mixtures based on differences in their volatilities in a boiling liquid mixture. Distillation is a unit operation, or a physical separation process, and not a chemical reaction. Distillation of fermented solutions has been used since ancient times to produce distilled beverages with higher alcohol content. The premises where distillation is carried out, especially distillation of alcohol are known as a distillery. Fractional Distillation Fractional distillation is the separation of a mixture into its component parts, or fractions, such as in separating chemical compounds by their boiling point by heating them to a temperature at which several fractions of the compound will evaporate. It is a special type of distillation. Generally the component parts boil at less than 25 °C from each other under a pressure of one atmosphere (atm). If the difference in boiling points is greater than 25 °C, a simple distillation is used. Fermentation Fermentation is a metabolic process whereby electrons released from nutrients are ultimately transferred to molecules obtained from the breakdown of those same nutrients. Yeast carries out fermentation in the production of ethanol in beers, wines and other alcoholic drinks, along with the production of large quantities of carbon dioxide. Molasses Molasses is a viscous byproduct of the processing of sugar cane or sugar beets into sugar. The quality of molasses depends on the maturity of the sugar cane or sugar beet, the amount of sugar extracted, and the method of extraction. Fermenter Yeast added to fermentation occurs. 8% alcohol is pure here. The Department of Management Sciences Page 41 Internship report on Murree Brewery Condenser A device or unit used to condense vapor into liquid. E10, E11, E50, E51, E43 are condensers. C10 It is Feed Column and boiling done here C50 It is Impurity Column. Alcohol is passed to C40 and Vapours are condensed in E50 & E51. C40 It is Rectifying Column. We get 96% alcohol here and remaining fusel oil (have 30 – 40 % alcohols) is passed to C10 with wash. SSR It is Spirit Receiver and water are added here to reduce the percentage of alcohol upto 43 or 37 % (depend on requirement). Essence and Colour are also added here. Onion Shaped Pot Made from Copper The Department of Management Sciences Page 42 Internship report on Murree Brewery Brewery Process The brewing process begins when the barley grain is soaked in water, thereby facilitating germination, and then drying and curing the grain through kilning. The barley has now turned into barley malt. The mill uses steel rollers to crack the grain open before it enters the mash tun. After the mixture of malts are cracked open by the mill they are mixed with the warm waters in the German built mash tun. The mash is then pumped sparged (sprayed) with hot water; this helps extract all the sugars from the malt as possible. The base of beer, or “wort”, is then pumped into the brew kettle where it is boiled, concenterated and clarified. The wort is now cooled before it is moved to a fermentation cellar where it will become beer. In order to speed the cooling process it is passed through a heat exchanger (Whirl pool). After the wort is cooled it is pumped into a fermentation tank located in the tun room, where specially cultured yeast, Saccharomy cerevisiac, is added to induce fermentation at 20-21 degree C over the next 48 to 56 hours. After the beer has been cold cellared and matured in the fermenter it is passed through a filter. The Department of Management Sciences Page 43 Internship report on Murree Brewery Murree Brewery’s bottling line is made up of several components. At the heart of the system is a counter-pressured filter which is capable of filling 500 bottels per hour. Filled bottles then enter into a pasteurizor, where hot water is sprayed on them. This ensures elimination of microorganisms, if any, in the beer. A modern packaging machine, SAMOVI, packs the beer bottles automatically in specific beer cartons. Beer is then shipped out of the final consumer through proper channel by the sales department of Murree Brewery Co. Ltd. The Department of Management Sciences Page 44 Internship report on Murree Brewery Flow Diagram of Brew House Steeping to increase moisture 40-45% (1.5 day process) Barley Screening A Grade For Beer B Grade For NAB D.V (dilution Vat) to make up the batch size and to cool Germination to activate Beta + Alpha enzymes (6 days process) Killing (multiage) to stop the activator of enzymes & roasted C Grade Keep safe in silo B low C Grade + foreign matter Grinding Filtration Chilled process at 11 degree Celsius (F.V) fermenting Vat fermentation (Add Yeast) The Department of Management Sciences Wert boiling in Kettle + addition of Nutrients Hops etc. Maturation process Filtration process 4 to 6 weeks (Beer) Mashing to change starch into sugar Bright beer tanks in BBT room in BBH hall Page 45 Internship report on Murree Brewery NAB Hall In NAB hall, non alcoholic products are prepared The Department of Management Sciences Page 46 Internship report on Murree Brewery Rinser Here empty bottles are washed. Screening 1 Screening of empty bottles. Screening 2 Screening of filled bottle (check the particles). Screening 3 Screening of final product in bottle (again check the particles). Pasteurization Pasteurization is a process of heating a food, usually liquid, to a specific temperature for a definite length of time, and then cooling it immediately. This process slows microbial growth in food. Pasteurization is not intended to destroy all pathogenic micro-organisms in the food or liquid. Instead, pasteurization aims to reduce the number of viable pathogens so they are unlikely to cause disease (assuming pasteurization product is stored as indicated and consumed before its expiration date). In that unit, temperature gradually increase and decrease from 25 to 60 C The Department of Management Sciences Page 47 Internship report on Murree Brewery Reserve Osmosis Plant Reverse Osmosis Reverse Osmosis (RO) is a filtration method that removes many types of large molecules and ions from solutions by applying pressure to the solution when it is on one side of a selective membrane. The result is that the solute is retained on the pressurized side of the membrane and the pure solvent is allowed to pass to the other side. To be "selective," this membrane should not allow large molecules or ions through the pores (holes), but should allow smaller components of the solution (such as the solvent) to pass freely. Reverse osmosis is most commonly known for its use in drinking water purification from seawater, removing the salt and other substances from the water molecules. RO Plant A reverse osmosis plant is a manufacturing plant where the process of reverse osmosis takes place. An average modern reverse osmosis plant needs six kilowatt-hours of electricity to desalinate one cubic metre of water. In RO plant, we remove the hardness of water. RO can give you all of these benefits: Delicious, pure, salt-free drinking water Crystal-clear, pure ice cubes Peace of mind, knowing your water is highly pure Compact, simple equipment - nothing to break down Cheap to operate - only requires water pressur The Department of Management Sciences Page 48 Internship report on Murree Brewery Ro plant Diagram Flow Diagram of RO Plant The Department of Management Sciences Page 49 Internship report on Murree Brewery Sand Filter Sand filters are used for water purification. Particles are removed in sand filter. Carbon Filter Carbon filtering is a method of filtering that uses a piece of activated carbon to remove contaminants and impurities, utilizing chemical adsorption The Department of Management Sciences Page 50 Internship report on Murree Brewery Pet Plant (1&2) (For 500 and 1500 ml bottles) In Pet Plant, Big Apple is prepared. In Pet Plant 1, both 500 and 1500 ml bottles are prepared. In Pet Plant 2, only 500 ml bottles are prepared. In Pet Plant 1, Caper machine should be attached to filler machine to reduce the wastage of Big Apple. Pet Plant 1 The Department of Management Sciences Page 51 Internship report on Murree Brewery Pet Plant 2 The Department of Management Sciences Page 52 Internship report on Murree Brewery Rinser Empty bottles are passed to rinser through air conveyer and are washed. Filling Machine Menoblock 3 series combine in 1 machine Capacity 1500 bottles/hour Weight 7000 kg Power 7.5 kw Dryer Wet bottles are dried here. Screening Screening of final product in bottle (check the particles). Pasteurization Pasteurization is a process of heating a food, usually liquid, to a specific temperature for a definite length of time, and then cooling it immediately. This process slows microbial growth in food. Pasteurization is not intended to destroy all pathogenic micro-organisms in the food or liquid. Instead, pasteurization aims to reduce the number of viable pathogens so they are unlikely to cause disease (assuming pasteurization product is stored as indicated and consumed before its expiration date). Temperature is kept from 0 to C. The Department of Management Sciences Page 53 Internship report on Murree Brewery Botteling Hall The Department of Management Sciences Page 54 Internship report on Murree Brewery (For bottles & canes)  In bottling hall, especially alcoholic products are prepared. The Department of Management Sciences Page 55 Internship report on Murree Brewery Rinser Here empty bottles are washed. Screening 1 Screening of empty bottles. Screening 2 Screening of filled bottle (check the particles). Screening 3 Screening of final product in bottle (again check the particles). Pasteurization Pasteurization is a process of heating a food, usually liquid, to a specific temperature for a definite length of time, and then cooling it immediately. This process slows microbial growth in food. Pasteurization is not intended to destroy all pathogenic micro-organisms in the food or liquid. Instead, pasteurization aims to reduce the number of viable pathogens so they are unlikely to cause disease (assuming pasteurization product is stored as indicated and consumed before its expiration date). In that unit, temperature gradually increase and decrease from 2 to 60˚ C. PU Meter For alcoholic 30 to 40 PU For non alcoholic 50 to 60 PU Gamma Level Detector That unit is before pasteurizer and for canes. If we give standard value for cane (e. g product filling till 320ml).Then less than of that has rejected and equal or greater has passed. The Department of Management Sciences Page 56 Internship report on Murree Brewery Bio Gas Plant Biogas typically refers to gas produced by the biological breakdown of organic matter in the absence of oxygen. The biogas plant consists of two components: Digester (or fermentation tank) Gas holder The digester is a cube-shaped or cylindrical waterproof container with an inlet into which the fermentable mixture is introduced in the form of liquid slurry. The gas holder is normally an airproof steel container that, by floating like a ball on the fermentation mix, cuts off air to the digester (anaerobiosis) and collects the gas generated. The decomposition of organic matter releasing various gases.The main gases released are methane, carbon dioxide, hydrogen and hydrogen sulphide. Bacteria carry out the decomposition or fermentation. The organic waste matter is generally animal or cattle dung, plant wastes, etc. These waste products contain carbohydrates, proteins and fat material that are broken down by bacteria. The waste matter is soaked in water to give the bacteria a proper medium to grow. Absence of air or oxygen is important for decomposition because bacteria then take oxygen from the waste material itself and in the process break them down. The Department of Management Sciences Page 57 Internship report on Murree Brewery It is assumed that one kg of fresh (wet) cow dung manure will give about 1.66 cubic feet of gas per day. Murree Brewery boiler tank used almost 30% of gas from bio gas plant. Flow Diagram The Department of Management Sciences Page 58 Internship report on Murree Brewery Spend Wash It is a liquid waste which comes from Distill House (Alcohol preparation house). Digester It is a closed tank. Here we feed cattle dung. Bacteria feeds through spend wash in the absence of oxygen. Digester has gas aeration coils which mixed the cattle dung and spend wash and generate gas. Gas Washer Here we used caustic soda (NaOH) to remove sulphur gas. Gas Holder Tank We collect the methane gas in gas holder tank. If order to supply, then supply the gas to boiler tank through blower. Blower It is used to push the gas to boiler tank. Clarified Tank In clarified tank, amylases settled down in lower cone which again moved to chamber no 1 through primary clarified tank and remain liquid waste drain out to Nala Lei. Environmental factor There is no smell and a good plantation in bio gas plant. The Department of Management Sciences Page 59 Internship report on Murree Brewery TOPS foods and Beverages The Department of Management Sciences Page 60 Internship report on Murree Brewery TOPS is the division of Murree Brewery. It was established in 1969. It processes fruits and markets fruit juices and allied food products. Two manufacturing units are located in Rawalpindi and Hattar (NWFP) respectively. A Tetra Pack packaging facility was added in 2001. The Hattar plant was installed in 1992. Its products are: Fruit Juices (Mango, Orange, Lychee etc.) Fruit squashes(Mango,Orange,lemon & Diet) Conserves( Apple & Strawberry Jam, Orange Marmalade) Vinegar ( Malted & Plain) Tomato Ketchups in various sizes, flavors & containers Malt Extract The Department of Management Sciences Page 61 Internship report on Murree Brewery Flow Diagram Tops The Department of Management Sciences Page 62 Internship report on Murree Brewery Sugar Dissolver Tank Here we dissolve the sugar through heating (steam) provided by boiler tank. Blending tank Juice preparation Pasteurization Plant Pasteurization is a process of heating a food, usually liquid, to a specific temperature for a definite length of time, and then cooling it immediately. This process slows microbial growth in food. Pasteurization is not intended to destroy all pathogenic micro-organisms in the food or liquid. Instead, pasteurization aims to reduce the number of viable pathogens so they are unlikely to cause disease (assuming pasteurization product is stored as indicated and consumed before its expiration date). Water tank The water come from pasteurization plant are collected in water tank and recycled and again used for pasteurization. Homogenizer Here we thick the juice. Tetra Pack Machine Filling of the juice Straw Machine Straw are attached with tetra pack The Department of Management Sciences Page 63 Internship report on Murree Brewery Quality Policy of TOPS Prepare the best quality products, believing that quality is first priority and will take all steps to encourage quality consciousness. Meet all applicable regulatory requirements and system standards. To recognize that our workforce is our strength. To satisfy the customer. Continuously improve the skills systems and business of the organization. They are commited to consistently meet their customer’s needs and expectation on product quality and performance of optimum cost through their competent human resource and continual improvement of process and system. The Department of Management Sciences Page 64 Internship report on Murree Brewery Advertisement / Promotional Activities and Demand Creation The marketing and promotional activities of fruit juice and related commodity groups are crucial in increasing the demand for fruit juices. These activities include, but are not limited to, promotion, advertising, new product development, and packaging innovations. Marketers adopt their strategies in accordance with specified consumer wants and needs. They also create product image and influence consumer purchases. Often, consumer demands for processed food like juices are difficult to categorize. Consumers tend to purchase products and services that cover a broad spectrum of price and value combinations. Servicing the educated, nutritionally aware consumer who dwells in the localities i.e. E-8, F Sectors of Islamabad, Blue Area etc. and same type of Consumer category in Lahore and other metro cities is a complex role which marketers strive to master. In these types of areas people use to have a pure fruit juice at least once a day, with an imported or prime local fruit juice. Similarly this market could be catered through intensive marketing and promotion campaign on television or other sophisticated media. New product developments in conjunction with technological advancements have improved the marketing of fruit juices like many other food items. Relatively recent innovations appearing on The Department of Management Sciences Page 65 Internship report on Murree Brewery supermarket shelves are single serving aseptically packaged fruit juices, fruit roll-ups and fruit juice blends. Marketing infrastructure, which includes refrigerated transportation facilities and the composition of retail and wholesale markets, is correlated to the consumer demand for high quality produce. Equipment that transports from the field to the supermarket, field wrapping machines, improved cooling techniques, and temperature controlled distribution centers have been developed to ensure the delivery of quality produce to retail outlets. It is also important to ensure that the product has a meaningful point of difference i.e. sophisticated and healthy attractive packaging, less use of preservatives and clearly mentioning of purity of the juice etc. Most new products fail in the market because they are "me-too" products with no unique benefit (or attraction) for the consumer. Generally for the fruit juice business advertising budget is around 5% of the Total Revenue but for a small or medium scale unit, it may vary (on the higher side). Billboards, Television, Radio, F.M Channels, and Newspapers are the conventional mediums, which have been powerfully used for the promotion of fruit juice products. The Department of Management Sciences Page 66 Internship report on Murree Brewery ISO 14001 ISO 14000 is primarily concerned with environmental management. This means what the organization does to eliminate harmful effects on the environment caused by its activities. It is the Environmental Management System specification with guidance for use. The design of EMS is an on-going, interactive process which consists of defining, documenting and the continually improvement of required capabilities. Environmental Aspects and Impacts The key to a successful registration for conformance with ISO 14001 is to accurately determine the organization's Environmental Aspects and Impacts Environmental Aspect Element of an organization's activities, products or services that can Interact with the environment. Interact may be positive, negative or neutral. Environmental Impact Any change to the environment, whether adverse or beneficial, wholly or partially resulting from an organization's activities, products or services. The Department of Management Sciences Page 67 Internship report on Murree Brewery The combination of environmental aspects and impacts is the first step in establishing the significance of environmental aspect. A significant environmental aspect is an environmental aspect that has or can have a significant environmental impact. There are three distinct requirements contained within this section of ISO 14001. First, the organization shall identify the environmental aspects of its activities, products and/or services. In other words the organization must understand how it interacts with the environment. Second, the organization shall identify the specific environmental aspects that can be controlled, and over which it can be expected to have influence. Third, arrive at a list of significant environmental aspects based upon the individual environmental impact of each environmental aspect. The importance of this third step cannot be underestimated. The final list of significant environmental aspects will provide the basis for the Environmental Policy statement, and the Environmental Objective(s) and Targets. In other words the list of significant environmental aspects drives the entire content and scope of the operational portion of the environmental management system. Identify Environmental Aspects All of the organization's activities, products and/or services must be included within the environmental aspects review framework. The organization must assemble a listing of potential environmental aspects. The listing might include the following: 1. releases of material to the air, water and/or soil; 2. Disposal of waste; 3. Energy and natural resource consumption; 4. Noise levels; 5. Transportation and/or storage of materials; 6. Manufacturing processes; The purpose of this activity is not to determine the importance of each aspect. The purpose is to create a complete listing of how the organization interacts with the environment. The organization must include the effect of non-routine situations in the listing such as emergency conditions, start-up and shutdown activities. The procedure that is developed to produce the list of environmental aspects must recognize the conceptof continual improvement The Department of Management Sciences Page 68 Internship report on Murree Brewery Continual Improvement The term continual improvement refers to an ongoing process of performance enhancement. In the context of this environmental standard, it means that you need to enhance your organization’s overall environmental performance by enhancing its environmental management system and by improving its ability to manage the environmental aspects of its activities, products, and services. Continual improvements can be achieved by carrying out internal audits, performing management reviews, analyzing data, and implementing corrective and preventive actions. The Department of Management Sciences Page 69 Internship report on Murree Brewery Environmental Factors Environmental Aspects Environmental Aspect is an element of an organization's activities, products or services that can interact with the environment. There are two types of environmental aspects: (i) Direct Environmental Aspect Activities over which a company can be expected to have an influence and control.For example, emissions from processes. (ii) Indirect Environmental Aspect Actual or Potential activities over which the organization can be expected to have an influence, but no control. For example, supply chain controlled aspects, customer controlled aspects, aspects managed elsewhere within the same company. Environmental Impact Any change to the environment, whether adverse or beneficial, wholly or partially resulting from an organization's activities, products or services. The combination of environmental aspects and impacts is the first step in establishing the significance of environmental aspect. Identification of Environmental Aspects (a) Identify Activities, Services and Products. (b) Consider direct and indirect environmental aspects. (c) Consider: Emissions to air. Release to water. Waste Management. Contamination of land. Impact on communities. Use of raw materials and natural resources. Other local environmental and community issues. The Department of Management Sciences Page 70 Internship report on Murree Brewery Environmental Aspects at Murree Brewery There are seven aspects in Murree Brewery i. Gas Emissions ii. Solid waste iii. Effluent iv. Noise v. Heat vi. Spillage vii. Dust Gas Emissions Gas emissions are any gaseous material released, either naturally or artificially, into the atmosphere. These gas emissions exist in a variety of forms: most notably water vapor, carbon dioxide, methane, nitrous oxide and ozone. The effects of these gas emissions come in the form of the greenhouse effect. Each of these gases absorbs radiation in the atmosphere, increasing the temperature of the Earth. Gas emissions from Boiler and Power House should have proper treatment because it causes air pollution, acid rain, global warming , ozone depletion We can minimize or pure the gases that come from Boiler and Power House through Electro precipitator technique. An electrostatic precipitator (ESP) or electrostatic air cleaner is a particulate collection device that removes particles from a flowing gas (such as air) using the force of an induced electrostatic charge. Electrostatic precipitators are highly efficient filtration devices that minimally impede the flow of gases through the device, and can easily remove fine particulate matter such as dust and smoke from the air stream. In contrast to wet scrubbers which apply energy directly to the flowing fluid medium, an ESP applies energy only to the particulate matter being collected and therefore is very efficient in its consumption of energy (in the form of electricity). The Department of Management Sciences Page 71 Internship report on Murree Brewery Trucks enters in Murree Brewery should have tuning well because if tuning not well, truck will emitted harmful gases which causes air pollution. The harmful gases are CO, NOx , Lead Compounds, Unburnt hydrocarbons etc Solid Waste Solid wastes are any discarded (abandoned or considered waste-like) materials. Solid wastes can be solid, liquid, and semi-solid or containerized gaseous material. In Murree Brewery, solid wastes are carton, glass, and paper, wood. Glass (silica) creates land contamination. The Department of Management Sciences Page 72 Internship report on Murree Brewery Noise Pollution Noise pollution is displeasing human, animal or machine-created sound that disrupts the activity or balance of human or animal life. In Murree Brewery, noise level is very high at Power house, Boiler plant and Pet plant. It damages the human ears. It can be minimized by using ear muff or ear plugs. Spillage Water and Molasses leakages in still house Water and Big Apple wastage in Pet plant Any product that prepared in NAB hall have wastages Waste water of Murree Brewery and Tops The Department of Management Sciences Page 73 Internship report on Murree Brewery Different Accounting Policies of the Company 1. Taxation policy of the Company Income tax on the profit or loss for the year comprises current and deferred taxation. Current and deferred tax is recognized in profit and loss account except to the extent that it relates to items recognized directly in equity in which case it is recognized in equity. Current Taxation Policy: Taxation charged in the financial statements is based on taxable income at the current rates of taxation after taking into account tax rebates and tax credits, if any. Deferred: Deferred tax is accounted for using the balance sheet liability method in respect of all temporary differences arising from differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax is calculated at the rates that are expected to apply to the period when the temporary differences are expected to reverse, based on tax rates that have been enacted at the balance sheet date. Deferred tax liabilities are recognized for all taxable temporary difference and deferred tax assets are recognized to the extent that it is probable that sufficient taxable profits will be available against which the deductible temporary differences, unused tax losses and tax credits can be utilized. At each balance sheet dates, the Company re-assesses unrecognized deferred tax assets and the carrying amount of deferred tax assets. The company recognizes the previously unrecognized deferred asset to the extent that it becomes probable that future taxable profits will allow the deferred tax asset to be recovered the company conversely reduces the carrying The Department of Management Sciences Page 74 Internship report on Murree Brewery amount of deferred tax asset to the extent that it is no longer probable that sufficient taxable profit will be available to the benefit of part or all of the deferred tax asset to be utilized. 2. Staff retirement benefits The company operates the following retirement benefit schemes for its employees: a) Defined contribution plan: The company operates a Provident Fund Trust for which the company and the employees contribute equally @ 8.33% of the basic salaries of employees. The Company’s contribution is charged to profit and loss account. b) Defined benefit plans The Company operates pension and gratuity plans for its eligible staff. The pension plan is funded while the gratuity plan is unfunded. The liabilities under the plans are determined on the basis of actuarial valuations carried out by using the projected unit credit method. The company has a policy of carrying out actuarial valuation after every two years. Significant actuarial assumptions are as follows: Discount Rate 10% Increase in Salary 10% Mortality Rate EFU 61-66 morality rate The Department of Management Sciences Page 75 Internship report on Murree Brewery Financial Analysis Company policies with reference to accounting, finance and corporate matters are governed by relevant corporate regulations, Companies Ordinance 1984, and the code of corporate Government. It is company resolved to comply with International Accounting Standards for the preparation of financial statements with any departure there from being adequately disclosed. Company is in the process of establishing and efficient Internal Audit Department to enhance the scope of internal control and data generated by the company, it also help in building the confidence of our creditors, financial institutions and other interested organization. Ratio Analysis The term “accounting ratios” is used to describe significant relationship between figures shown on a balance sheet, in a profit and loss account, in a budgetary control system or in any other part of accounting organization. Accounting ratios thus shows the relationship between accounting data. Ratio analysis is very important while measuring the performance of the business. These ratios are carried out from the income statement and balance sheet. Many parties including management, investor and Government are interested in these ratios. The purpose of analysis is to measure the performance of the company and financial health of the organization. Advantages of Ratio Analysis Ratio analysis is an important and age-old technique of financial analysis. The following are some of the advantages of ratio analysis: Simplifies financial statement It simplifies the comprehension of financial statements. Ratios tell the whole story of changes in the financial condition of the business. The Department of Management Sciences Page 76 Internship report on Murree Brewery Facilitates inter-firm comparison: It provides data for inter-firm comparison. Ratios highlight the factors associated with successful and unsuccessful firm. They also reveal strong firms and weak firms, overvalued and undervalued firms. Help in planning: It helps in planning and forecasting. Ratios can assist management, in its basic functions of forecasting for planning, co-ordination, control and communications. Make inter-firm comparison possible: Ratio analysis also makes possible comparison of the performance of different divisions of the firm. The ratios are helpful in deciding about their efficiency or otherwise in the past and likely performance in the future. Help in investment divisions: It helps in investment decisions in the case of investor and lending decisions in the case of bankers etc. Limitation of Ratios Analysis The ratios analysis is one of the most powerful tools of financial management. Though ratios are simple to calculate and easy to understand, they suffer from serious limitations. Limitation of financial statements: Ratios are based only on the information which has been recorded in the financial statements. Financial statements themselves are subject to several limitations. For example; non-financial changes though important for the business are not relevant by the financial statements. Financial statements are effected to a very great extent by accounting The Department of Management Sciences Page 77 Internship report on Murree Brewery conventions and concepts. Personal judgment plays a great part in determining the figures for financial statements. Comparative study required: Ratios are useful in judging the efficiency of the business only when they are compared with past results of the business. However, such a comparison only provide glimpse of the past performance and forecasts for future may not prove correct since several other factors like market conditions, management policies, etc. may affect the future operations. Ratios alone are not adequate: Ratios are only indicators; they cannot be taken as final regarding good or bad financial position of the business. Other things have also to be seen. Problems of price level changes: a change in price level can affect the validity of ratios are calculated for different time periods. In such a case the ratio analysis may not clearly indicate the trend in solvency and profitability of the company. The financial statements, therefore, be adjusted keeping in view the price level changes if a meaningful comparison is to be made through accounting ratios. Lack of adequate standard: No fixed standard can be laid down for ideal ratios. There are no well accepted standards or rule of thumb for all ratios which can be accepted as norm. It renders interpretation of the ratios difficult. Limited use of single ratios: A single ratio, usually, does not convey much of a sense. To make a better interpretation, a number of ratios have to be calculated which is likely to confuse the analyst than help in making any good decision. Personal bias: Ratios are only means of financial analysis and not an end in itself. Ratios have to interpret and different people may interpret the same ratio in different way. Incomparable: Not only industries differ in their nature, but also the firms of the similar business widely in their size and accounting procedures etc. It makes comparison of ratios difficult and misleading. The Department of Management Sciences Page 78 Internship report on Current Ratio = Murree Brewery Current Assets/Current Liabilities Years 2006 2007 2008 2009 Current Ratio 2.167 2.544 2.546 2.794 3 2.5 2006 2 2007 2008 1.5 2009 1 0.5 0 Current Ratio Interpretation: Current ratio may be defined as the relationship between current assets and current liabilities. This ratio is also known as “working capital ratio”. It is a measure of general liquidity and is most widely used to make the analysis for short term financial position or liquidity of a firm. It is calculated by dividing the total of the current assets by total of the current liabilities. As in the the above graph we see that the current ratio is gradually increasing from 2006 to 2009. Components: The Department of Management Sciences Page 79 Internship report on Murree Brewery The two basic components of this ratio are current assets and current liabilities. Current assets include cash and those assets which can be easily converted into cash within a short period of time, generally, one year, such as marketable securities or readily realizable investments, bill receivables, sundry debtors, (excluding bad debts or provisions), inventories, work in progress, etc. Prepaid paid expenses should also be included in current assets because they represent payments made in advance which will not have to be paid in near future. Current liabilities are those obligations which are payable within a short period of tie generally one year and include outstanding expenses, bills payable, sundry creditors, bank overdraft, accrued expenses, short term advances, income tax payable, dividend payable, etc. However, sometimes a controversy arises that whether overdraft should be regarded as current liability or not. Often an arrangement with a bank may be regarded as permanent and therefore, it may be treated as long term liability. At the same time the fact remains that the overdraft facility may be cancelled at any time. Accordingly, because of this reason and the need for conversion in interpreting a situation, it seems advisable to include overdrafts in current liabilities. Limitations of Current Ratio: This ratio is measure of liquidity and should be used very carefully because it suffers from many limitations. It is, therefore, suggested that it should not be used as the sole index of short term solvency. 1. It is crude ratio because it measures only the quantity and not the quality of the current assets. 2. Even if the ratio is favorable, the firm may be in financial trouble, because of more stock and work in process which is not easily convertible into cash, and therefore firm may have less cash to pay off current liabilities. 3. Valuation of current assets and window dressing is another problem. This ratio can be very easily manipulated by overvaluing the current assets. An equal increase in both current assets and current liabilities would decrease the ratio and similarly equal decrease in current assets and current liabilities would increase current ratio. Significance The Department of Management Sciences Page 80 Internship report on Murree Brewery This ratio is a general and quick measure of liquidity of a firm. It represents the margin of safety or cushion available for creditors. It is an index of the firm’s financial stability. It is also an index of technical solvency and an index of the strength of working capital. A relatively high current ratio is an indication that the firm is liquid and has the ability to pay its current obligations in time and when they become due. On the other hand, a relatively low current ratio represents that the liquidity position of the firm is not good and the firm shall not be able to pay its current liabilities in time without facing difficulties. An increase in the current ratio represents improvement in the liquidity position of the firm while a decrease in the current ratio represents that there has been deterioration in the liquidity position of the firm. A ratio equal to or near 2:1 is considered as a standard or normal or satisfactory. The idea of having doubled the current assets as compared to current liabilities is to provide for the delays and losses in the realization of current assets. However, the rule of 2:1 should not be blindly used while making interpretation of the ratio. Firms having less than 2:1 ratio may be having better ratio. This is because of the reason that current ratio measures the quantity of the current assets and not the quality of the current assets. If a firm's current assets include debtors which are not recoverable or stocks which are slow-moving or obsolete, the current ratio may be high but it does not represent a good liquidity position. The Department of Management Sciences Page 81 Internship report on Debt Ratio = Murree Brewery .Total assets /Total liabilities Years 2006 2007 2008 2009 Debt Ratio 3.534 3.724 7.708 7.746 8 7 6 2006 5 2007 4 2008 2009 3 2 1 0 Debt Ratio Interpretation: A ratio that indicates what proportion of debt a company has relative to its assets.The measure gives an idea to the leverage of the company along with the potential risks the company faces in terms of its debt-load. A debt ratio of greater than 1 indicates that a company has more debt than assets; meanwhile, a debt ratio of less than 1 indicates that a company has more assets than debt. Used in conjunction with other measures of financial health, the debt ratio can help investors determine a company's level of risk. In the above graph we see that in 2006 and 2007 there is a smaller change but in 2008 and 2009 the debt ratio gradually increase due to installation of the new plant. The Department of Management Sciences Page 82 Internship report on Debt –Equity Ratio = Murree Brewery . Long term debt/ Total capitalization Years 2006 2007 2008 2009 Debt-equity Ratio% 9.74 8.02 3.41 4.36 10 9 8 7 6 5 4 3 2 1 0 2006 2007 2008 2009 Debt-equity Ratio% Interpretation: A high debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense. If a lot of debt is used to finance increased operations (high debt to equity), the company could potentially generate more earnings than it would have without this outside financing. If this were to increase earnings by a greater amount than the debt cost (interest), then the shareholders benefit as more earnings are being spread among the same amount of shareholders. However, the cost of this debt financing may outweigh the return that the company generates on the debt through investment and business activities and become too much for the company to handle. This can lead to bankruptcy, which would leave shareholders with nothing. In the above graph we see that the debt to equity ratio is good and high in 2006 and 2007 but in 2008 and 2009 it gradually decreases due to some factors. The debt/equity ratio also depends on the industry in which the company operates. For example, capital-intensive industries such as auto manufacturing tend to have a debt/equity ratio above 2, while personal computer companies have a debt/equity of under 0.5. The Department of Management Sciences Page 83 Internship report on Murree Brewery Time intrest earned Ratio = . EBIT / I Years 2006 2007 2008 2009 Time intrest earned Ratio 124.99 334.16 400.84 79.81 450 400 350 2006 300 2007 250 2008 200 2009 150 100 50 0 Time intrest earned Ratio Interpretation: It is usually quoted as a ratio and indicates how many times a company can cover its interest charges on a pretax basis. Failing to meet these obligations could force a company into bankruptcy. It is also referred to as "interest coverage ratio" and "fixed-charged coverage”. Ensuring interest payments to debt holders and preventing bankruptcy depends mainly on a company's ability to sustain earnings. However, a high ratio can indicate that a company has an undesirable lack of debt or is paying down too much debt with earnings that could be used for other projects. The rationale is that a company would yield greater returns by investing its earnings into other projects and borrowing at a lower cost of capital than what it is currently paying to meet its debt obligations. The larger the time interest earned, the more capable the company is at paying the interest on its debt. In the above table we see that in year 2007 and 2008 company gives more interest as compared to year 2006 and 2009. The Department of Management Sciences Page 84 Internship report on Murree Brewery Avg Collection Period = Number of days in a year / Accounts receivable Turnover Years 2006 2007 2008 2009 Avg collection period% 0.67 0.34 0.31 0.35 0.7 0.6 2006 0.5 2007 0.4 2008 0.3 2009 0.2 0.1 0 Avg collection period% Interpretation: The approximate amount of time that it takes for a business to receive payments owed, in terms of receiveables, from its customers and clients Due to the size of transactions, most businesses allow customers to purchase goods or services via credit, but one of the problems with extending credit is not knowing when the customer will make cash payments. Therefore, possessing a lower average collection period is seen as optimal, because this means that it does not take a company very long to turn its receivables into cash. Ultimately, every business needs cash to pay off its own expenses (such as operating and administrative expenses). In the above graph we see that in 2006 the collection period is good but it decreases in next years. The Department of Management Sciences Page 85 Internship report on Accounts payable turnover Murree Brewery = . CGS / Avg accounts payable Years 2007 2008 2009 Accpunts payable turnover 4.019 4.046 5.1 6 5 2007 4 2008 3 20092 2 1 0 Accpunts payable turnover Interpretation: A short-term liquidity measure used to quantify the rate at which a company pays off its suppliers. The measure shows investors how many times per period the company pays its average payable amount. In the above graph we see that the turnover is gradually increases from year 2007 to 2009 The Department of Management Sciences Page 86 Internship report on Murree Brewery Avearge Payment Period = No Of days in a year / Accounts Payable Turnover. Years Avearage payment period 2007 88.983 2008 90.212 2009 71.56 100 90 80 70 2007 60 2008 50 2009 40 30 20 10 0 Avearage payment period Interpretation: The average payment period ratio represents the number of days by the firm to pay its creditors. A high creditor’s turnover ratio or a lower credit period ratio signifies that the creditors are being paid promptly. This situation enhances the credit worthiness of the company. However a very favorable ratio to this effect also shows that the business is not taking the full advantage of credit facilities allowed by the creditors. In the above graph we see that the payment period is high in 2008 as compare to 2009 but it was slightly higher from 2007. The Department of Management Sciences Page 87 Internship report on Total Assets Turnover Murree Brewery = . Annual sales / Avg total assets Years 2007 2008 2009 Total assets turnover 1.008 0.6212 0.553 1.2 1 2007 0.8 2008 0.6 20092 0.4 0.2 0 Total assets turnover Interpreatation: The total asset turnover ratio measures the ability of a company to use its assets to generate sales. The total asset turnover ratio considers all assets including fixed assets, like plant and equipment, as well as inventory and accounts receivable. The lower the total asset turnover ratio, as compared to historical data for the firm and industry data, the more sluggish the firm's sales. This may indicate a problem with one or more of the asset categories composing total assets - inventory, receivables, or fixed assets. In the above graph we can see that total asset turnover ratio of Murree Brewery showing mix trend in the year 2006 to year 2009. Total asset turnover ratio is at highest level in year 2007. The Department of Management Sciences Page 88 Internship report on Fixed Assests Turnover Murree Brewery = Annual Sales / Total fixed Assets Years 2006 2007 2008 2009 Fixed assests turnover times 1.497 2.056 0.5884 0.7533 2.5 2 2006 2007 1.5 2008 2009 1 0.5 0 Fixed assests turnover times Interpretation: Fixed assets turnover ratio is also known as sales to fixed assets ratio. This ratio measures the efficiency and profit earning capacity of the concern. Higher the ratio, greater is the intensive utilization of fixed assets. Lower ratio means under- utilization of fixed assets The fixed-asset turnover ratio measures a company's ability to generate net sales from fixed-asset investments - specifically property, plant and equipment (PP&E) - net of depreciation. A higher fixed-asset turnover ratio shows that the company has been more effective in using the investment in fixed assets to generate revenues. This ratio is often used as a measure in manufacturing industries, where major purchases are made for PP&E to help increase output. When companies make these large purchases, prudent investors watch this ratio in following years to see how effective the investment in the fixed assets was. In the above tgraph we can see that fixed asset turnover ratio of Murree Brewery showing mix trend in the year 2006 to year 2009. Fixed asset turnover ratio is at highest level in year 2007. The Department of Management Sciences Page 89 Internship report on Gross Profit Margin = Murree Brewery . Gross Profit / Sales *100 Years 2006 2007 2008 2009 Gross profit margin 26.158 26.71 29.571 28.341 30 29 2006 28 2007 27 2008 26 2009 25 24 Gross profit margin Interpretation: Gross profit ratio (GP ratio) is the ratio of gross profit to net sales expressed as a percentage. It expresses the relationship between gross profit and sales. The basic components of the calculation of gross profit are gross profit and net sales. Net sales mean those sales minus sales returns. Gross profit would be the difference between net sales and cost of goods sold. Cost of goods sold in the case of trading concern would be equal to opening stock plus purchase, minus closing stock plus all direct expenses relating to purchases. In the case of manufacturing concern, it would be equal to the sum of the cost of raw materials, wages, direct expenses and all manufacturing expenses. In other words, generally the expenses charged to profit and loss account or operating expenses are excluded from the calculation of cost of goods sold. Gross profit ratio may be indicated to what extent the selling prices of goods per unit may be reduced without incurring losses on operations. It reflects efficiency with which a firm produces its products. As the gross profit is found by deducting cost of goods sold from net sales, higher the gross profit better it is. There is no standard GP ratio for evaluation. It may vary from business to business. However, the gross profit earned should be sufficient to recover all operating expenses and to build up reserves after paying all fixed interest charges and dividends. In the above graph we see that the gross profit margin is highest in year 2008 as compare to other years. The Department of Management Sciences Page 90 Internship report on Operating profit margin Murree Brewery = . Operating profit / Sales *100 Years 2006 2007 2008 2009 Operating profit margin % 14.411 14.599 16.53 16.05 17 16.5 16 2006 15.5 2007 15 2008 14.5 2009 14 13.5 13 Operating profit margin % Interpretation: Operating ratio of cost of good sold plus operating expenses to net sales. It is generally expressed in percentage. It measures the cost of operations per dollar of sales. This is closely related to the ratio of operating profit to net sales. The two basic components for the calculation of operating ratio are operating cost (cost of goods sold plus operating expenses) and net sales. Operating expenses normally include (a) administrative and office expenses and (b) selling and distribution expenses. Financial charges such as interest, provision for taxation etc. are generally excluded from operating expenses. The profit is lower in 2006 and 2007 and then gradually increases in 2008 and 2009 because of installation of new machines and starting of new projects. The Department of Management Sciences Page 91 Internship report on Net profit margin = Murree Brewery . Net profit / Sales *100 Years 2006 2007 2008 2009 Net profit margin% 12.67 12.16 11.42 9.71 14 12 2006 10 2007 8 2008 6 2009 4 2 0 Net profit margin% Interpretation: Net profit ratio is the ratio of net profit (after taxes) to net sales. It is expressed as percentage. NP ratio is used to measure the overall profitability and hence it is very useful to proprietors. The ratio is very useful as if the net profit is not sufficient, the firm shall not be able to achieve a satisfactory return on its investment. This ratio also indicates the firm's capacity to face adverse economic conditions such as price competition, low demand, etc. Obviously, higher the ratio the better is the profitability. But while interpreting the ratio it should be kept in minds that the performance of profits also is seen in relation to investments or capital of the firm and not only in relation to sales. In the above graph we see that there is a bit mixed trend in the net profit margin. The Department of Management Sciences Page 92 Internship report on Murree Brewery Earning Per Share = Profit after Tax / No. of Shares outstanding Years 2006 2007 2008 2009 Earning per share RS 13.65 17.31 14.93 16.45 18 16 14 2006 12 2007 10 2008 8 2009 6 4 2 0 Earning per share RS Interpretation: Earning per share ratio (EPS Ratio) is a small variation of return on equity capital ratio and is calculated by dividing the net profit after taxes less preference dividend by the total number of equity shares. The earning per share is agood measure of profitability and when compared with EPS of similar companies, it gives a view of the comparative earnings or earning power of the firm. EPS ratio calculated for a number of years indicates whether or not the earning power of the company has incrased. The Earnig Per Share is higher in 2007 as compared to other years. The Department of Management Sciences Page 93 Internship report on Murree Brewery Price earning ratio=Market price per equity share /Earning per Share Years 2006 2007 2008 2009 Price earning ratio Rs 6.47 5.10 5.919 5.37 7 6 2006 5 2007 4 2008 3 2009 2 1 0 Price earning ratio Rs Interpretation: Price earning ratio (P/E ratio) is the ratio between market price per equity share and earning per share. The ratio is calculated to make an estimate of appericiation in the value of a share of a company and is widely used by investors to decide whether or not to buy shares in a particular company. Price earning ratio helps the investor in deciding whether to buy or not to buy the shares of a particular company at a particular market price. Generally, higher the price earning ratio the better it is. If the P/E ratio falls, the management should look into the causes that have resulted into the fall of this ratio. The Department of Management Sciences Page 94 Internship report on Murree Brewery Dividend pay out Ratio = Dividend per share / Earning per share Year Dividend payout ratio 2009 30 Earning yield = Earning Per Share / Market Price per Share * 100 Years 2006 2007 2008 2009 Earning yeild ratio 0.154 0.195 0.168 0.98 1 0.9 0.8 0.7 2006 0.6 2007 0.5 2008 0.4 2009 0.3 0.2 0.1 0 Earning yeild ratio Interpretation: The earnings per share for the most recent 12-month period divided by the current market price per share.The earnings yield (which is the inverse of the P/E ratio) shows the percentage of each dollar invested in the stock that was earned by the company. In the above table we see that the earning yield ratio is highest in year 2009 while in other years it is low. The Department of Management Sciences Page 95 Internship report on Return on equity = Murree Brewery [(Net profit after tax − Preference dividend) / Equity share capital] × 100 Years 2006 2007 2008 2009 Return on equity 14.25 15.9 5.7 6.7 16 14 12 2006 10 2007 8 2008 2009 6 4 2 0 Return on equity Interpretation: In real sense, ordinarily shareholders are the real owners of the company. They assume the highest risk in the company. (Prefrence share holders have a preference over ordinary shareholders in the payment of dividend as well as capital. Preference share holders get a fixed rate of dividend irrespective of the quantum of profits of the company). The rate of dividends varies with the availability of profits in case of ordinary shares only. Thus ordinary shareholders are more interested in the profitability of a company and the performance of a company should be judged on the basis of return on equity capital of the company. The return on equity is higher in 2006 and 2007 and then it gradually decreases in nest years. The Department of Management Sciences Page 96 Internship report on Return on investment Murree Brewery = Net income / LTD +equity * 100 Years 2006 2007 2008 2009 Return on investment% 12.987 14.75 5.56 5.84 16 14 12 2006 10 2007 8 2008 2009 6 4 2 0 Return on investment% Interpretation: Performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. Return on investment is a very popular metric because of its versatility and simplicity. That is, if an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment should be not be undertaken. The return on investment higher in 2006 and 2007 and then it gradually decreases in nest years. The Department of Management Sciences Page 97 Internship report on Murree Brewery Balance Sheet 2009 The Department of Management Sciences Page 98 Internship report on Murree Brewery Balance Sheet 2008 The Department of Management Sciences Page 99 Internship report on Murree Brewery Profit and Loss 2009 The Department of Management Sciences Page 100 Internship report on Murree Brewery Profit and Loss Account 2008 The Department of Management Sciences Page 101 Internship report on Murree Brewery Cash Flow 2009 The Department of Management Sciences Page 102 Internship report on Murree Brewery Cash Flow 2008 The Department of Management Sciences Page 103 Internship report on Murree Brewery Change in Equity 2009 The Department of Management Sciences Page 104 Internship report on Murree Brewery Change in Equity 2008 The Department of Management Sciences Page 105 Internship report on Murree Brewery SWOT Analysis A SWOT analysis stands for Strengths, Weaknesses, Opportunities, and Threats and is a simple and powerful way to analyze your company's present marketing situation. Strength:  Murree Brewery is the country only Licensed Brewer.  Majority of market share in major product categories making it a market leader in major product categories.  Murree Brewery has contract with five star hotels in Pakistan for supply of Alcoholic products.  Murree Brewery has modern glass manufacturing plant.  Strong Vertical Integration.  They know their customers, one by one. Their direct sale force maintains a relationship.  They have loyalty of customers and vendors. They are local.  This also its main strength as it has diversity in many businesses such as i. TOPS foods. ii. TOPS Beverages. The Department of Management Sciences Page 106 Internship report on Murree Brewery Weakness:  Decline in taste: during the last six months there have been big complaints from the customers with regard to the bad taste.  They have a lack of emphasis on their advertisement.  Weak Distribution: They lack behind in creating the rural areas and just concentrating in the urban areas.  Low consumer Knowledge: unable to maximize local consumer Knowledge.  No packages and bonuses are provided direct to the retailers.  Company does not focus on the Replacement of the Products.  There are only few chillers in the market.  Merchandizing: Make the availability of product in store and cover the picnic spots. Opportunities:  Increase Population: As almost in all over the country growth rate is increasing which in turn increases the demand of products and necessities and especially in Punjab the market is growing at a faster rate as compare to other Provinces. So they have to attract new entrants.  Changing Social Trend: As in all over the world people are rushing towards fast food and beverage because of life which has become much faster, it provide the company a favor to capture this fast moving market with its take away product. Threats:  Government Regulation: They face problem if government employ taxes on them which force them to raise the price of their product.  Corporation’s Shortage Problem: Again this is also a serious threat from it suppliers as if supplier is unhappy with the company. He may reduce the supply and exploit the company. This action will surely affect the production process.  Substitutes such as juices are maintaining a strong foothold in the market.  Political instability: The biggest threat is political instability.  Threats of Labor Strikes: External threat of labor strikes and power outages in Pakistan. The Department of Management Sciences Page 107 Internship report on Murree Brewery Work Done by Me It was pleasure for me to do work in Organization. I was mainly entrusted with the duties of the area of purchases and payables in the finance department and in the sales department. 1. Collect all the related documents for the purchase and sales of both Alcoholic and non-alcoholic products. And keep these documents in respective files for the proper maintenance of record and for the subsequent audit of the area. 2. Check the Work in Process invoices and supplier’s standard invoice. 3. Daily wrote the dairy on the work which I have done. 4. Work with the sales manager of the TOPS. 5. I visited different areas with sales manager and learn how sales manager put sales and take order by the different shop holders. 6. Work with the Auditors. Learn about the internal Audit that how internal audit took place. 7. Attend meeting on the waste management held by ISO 14001. 8. In this meeting we learn that how to dispose of the waste material. The Department of Management Sciences Page 108 Internship report on Murree Brewery Suggestions and Recommendations There is a need of strong communication within each department and between the departments. There was no proper system of communication as who is to report to whom and who is responsible of what. If a simple technical worker encounters a problem in the plant or any part of the equipment is broken, he at once rushes to the production manager as what to do. This is clear that they have no proper reporting system as to deal with the broken part of the equipment is not the job of the production manager. There must be clearly defined levels of communication. The technical worker must report to his immediate supervisor. If that supervisor is unable to solve the problem then the official next to him should be consulted and be preceded in the same pattern. The matter will reach the production manager but in a systematic way. So company needs a proper communication and reporting system. It may also help in reducing rather eliminating false reporting. Locate all the sub-departments of HR at same place. It will help to increase coordination between departments. There should be separate uniform for workers of each department within a specific business unit. Attendance procedure should be more appropriate. Finger prints should be taken from the employees. Internees should be free to visit all departments. There should be proper equipment provided to employees and workers to prevent noise pollution and dusty areas. The workers should be strictly bound to use these equipments. The Department of Management Sciences Page 109 Internship report on Murree Brewery Stipend should be given to internees. There should be separate equipment for training room. There should be separate cafeteria for female employees. There should be proper mosque for employees. Waste material should be recycled or proper disposal of waste material Products should manufactured with ingredients that are write on label and Govt. should have proper check and balance on production Company should provide moral persuasion to their workers. New flavors can be introduced into the market as early as possible because around 30% of the consumers were eager to know if the drink would come in more flavors and another 10% of the consumers did not like Orange flavour so they were anticipating the probable launch of other flavors. Whenever someone talks about motivating the employees, it is commonly said, “Don’t forget the money consideration”. So, apart from motivation through training for the work, the employees must be rewarded with proper reward and compensation systems. The company is also lacking in this area. Getting rewards especially when it is in the form of money or cash motivates the employees The Department of Management Sciences Page 110 Internship report on Murree Brewery Conclusion Beer is one of the world’s oldest beverges. Beer-like beverages were independently invented among various cultures throughout the world. The invention of beer has been argued to be responsible for humanity’s ability to develop technology and build civilization. The earliest known chemical evidence of beer dates to circa 3500-3100 BC from the site of Godine Tepe in the Zagros Mountains of western Iran. Today, the brewing industry is a global business, consisting of several dominant multinational companies and many thousands of smaller producers ranging from brewpubs to regional breweris. To meet the beer requirements of British personnel (mainly army), the Murree Brewery was established in 1860 and incorporated a year later at Ghora Galli, located in Pir Punjal range of the Western Himalyas at an elevation of 6000’ above sea level, near the resort town of murree. Between 1885 & 1890 the company established Breweries in Rawalpindi & Quetta & acquired an interest in the Oticumand (South India) & Norailiya (ceylon) breweris. A distillery was also established in the above period in Rawalpindi next to the Brewery. The Murree Brewery at Ghora Galli was therefore among the first modern beer breweries established in Asia. Murree Beer proved to be very popular among the British troopers who were largerly barracked in tha ‘Galis’ of these hills. In 1935, a massive earthquake totally demolished the Quetta brewery as well as substantial part of Quetta town, killing thousands of persons, including a number of our employees. At Ghora Galli (Murree), the scarcity of water became an emerging problem. The Department of Management Sciences Page 111 Internship report on Murree Brewery By the 1920s, brewing was mostly transferred to the Rawalpindi brewery but malting continued at Ghora Galli till the 1940s, when this property was sold. The historic brewery built in Gothic style architecture was burnt during the partition riots of 1947/48. The Rawalpindi brewery is blessed with deep aquifers of good watter. A railway siding was extended to the premises in the 19th century, which is now derelict. There two underground cellars now hold over half a million liters of Malt Whisky for varying periods of maturation up to 12 years under controlled temperature conditions. Another wave of modernization was undertaken in the 1990s. New beer canning and modern bottle filling facility from Holstein and Kappert (Germany) was installed. Two units of alcohol rectification columns for producing extra neutral grade of potable alcohol from Molasses were procured from France and Italy, respectively, to give our Vodkas and Gins a qualitative edge. Tops Food and Beverages a division of the Company was established in 1969. It processes fruits and markets fruit juices and allied food products. Two manufacturing units are located in Rawalpindi and Hattar (NWFP) respectively. A Tetra Pak packaging facility was added in 2001. The Hattar plant was installed in 1992. The plant is based on a Recuperative Melter and two Emhart I.S. container manufacturing machines and has the latest quality control equipment for online inspection of containers. The Murree Brewery is one of the oldest public companies of the sub-continent. Its shares were traded on the Calcutta Stock Exchange as early as 1902, and are now the oldest continuing industrial enterprise of Pakistan. The Murree Brewery, shares of which are publicly traded on the Pakistan stock exchange in Karachi, was initially established in 1860 among the woods and cooling breezes of the Murree Hills, 20 miles north of Islamabad, where the elevation of 6,000ft was perfect for The Department of Management Sciences Page 112 Internship report on Murree Brewery producing light beer for British colonial troops. Growing demand for its award-winning products saw the company establish additional breweries in Quetta in 1886 and in Rawalpindi in 1889, the site of the current operation. In 1997-1998 and 1998-1999, we were judged among the top 25 performing public companies by the Karachi Stock Exchange. Murree Brewery is the maker of Pakistan's premier beer brand; Murree Beer.Its products are only legally available in Pakistan owing to a prohibition on the exportation of alcohol from Pakistan. The brewery has two manufacturing units located in Rawalpindi and Hattar (North-West Frontier Province). All Murree products are readily available in legal liquor shops that operate openly in Karachi in places like Zamzama and Defense. It is also available in the interior of Sindh. Although the consumption of alcohol in public is still nominally banned, it is becoming increasingly available in clubs and high-class restaurants. Murree Beer was initially being produced in Austria for European markets and was available in various Pakistani and Indian restaurants, an enterprise which has since ceased since 2004. The Murree Brewery is one of the oldest public companies of the sub-continent. Its shares were traded on the Calcutta Stock Exchange as early as 1902, and are now the oldest continuing industrial enterprise of Pakistan and among the top 25 performing public companies by the Karachi Stock Exchange. Murree's biggest competitor is the Quetta Distillery and its products have to increasingly vie with smuggled brands from the West and India. The Department of Management Sciences Page 113 Internship report on Murree Brewery "Sales are good," said Isphanyar Bhandara, the brewery's 36-year-old chief executive, "but we don't want to shout about it because that also brings negative publicity and criticism, because this is a Muslim country – and yet sales are growing." Murree brewery sits on one of the major fault lines of Pakistan's often contradictory society. While Muslims have been banned from buying or drinking alcohol since 1977, few private social gatherings among the country's political or business élite take place without the lubrication of liquor. Murree brewery is aimed to have a good quality of products and it is providing different types of liquids to upper class, middle class and low class people. The company believes that whatever we provide to the customers should be the best for them. They should get the maximum satisfaction in this product. Company has 15 different types of juices, which come into jars, bottles and Packs.An Company have 21 types of Alcoholic drinks.They have to maintain a price which is affordable to the customers and which is profitable to them TOPS have nationwide users so they have to arrange dealers in the every city. They have their branch offices in Karachi, Lahore, Islamabad, Faisalabad and all the major cities of Pakistan so that one can get easy delivery of their product easily in every city or village of country. The Murree Brewery produces a wide variety of Beer’s, liqour’s and non-alcoholic products. There premium products include Murree’s Millennium Beer, Murree’s Classic Beer, Lite Export Pils, Eight and twelve years old single Malt Whiskies, Vintage with a blend of a Scotch Grain Whisky, Silver Top Gin, Boskaya Vodka And Doctor’s Brandy. The murree brewery production process is divided in to different departments like distillery unit, brewery unit, NAB plant, botteling hall etc. The Department of Management Sciences Page 114 Internship report on Murree Brewery For making environmental friendly and good the murrree brewery using Bio Gas plant. Biogas typically refers to gas produced by the biological breakdown of organic matter in the absence of oxygen. The biogas plant consists of two components Digester (or fermentation tank) and Gas holder. It is assumed that one kg of fresh (wet) cow dung manure will give about 1.66 cubic feet of gas per day. Murree Brewery boiler tank used almost 30% of gas from bio gas plant. Murree Brewery TOPS department prepare the best quality products, believing that quality is first priority and will take all steps to encourage quality consciousness. They meet all applicable regulatory requirements and system standards.To recognize that our workforce is our strength, to satisfy the customer. Continuously improve the skills systems and business of the organization. Murree Beverages are commited to consistently meet their customer’s needs and expectation on product quality and performance of optimum cost through our competent human resource and continual improvement of process and system. The marketing and promotional activities of fruit juice and related commodity groups are crucial in increasing the demand for fruit juices. These activities include, but are not limited to, promotion, advertising, new product development, and packaging innovations. Marketers adopt their strategies in accordance with specified consumer wants and needs. They also create product image and influence consumer purchases. Often, consumer demands for processed food like juices are difficult to categorize. Consumers tend to purchase products and services that cover a broad spectrum of price and value combinations. It is also important to ensure that the product has a meaningful point of difference i.e. sophisticated and healthy attractive packaging, less use of preservatives and clearly mentioning of purity of the juice etc. Most new products fail in the market because they are "me-too" products with no unique benefit (or attraction) for the consumer. Generally for the fruit juice business advertising budget is around 5% of the Total Revenue but for a small or medium scale unit, it may vary (on the higher side). Billboards, Television, Radio, F.M The Department of Management Sciences Page 115 Internship report on Murree Brewery Channels, and Newspapers are the conventional mediums, which have been powerfully used for the promotion of fruit juice products. Murree brewery is working on ISO 14001. ISO 14000 is primarily concerned with environmental management. This means what the organization does to eliminate harmful effects on the environment caused by its activities. It is the Environmental Management System specification with guidance for use. The design of EMS is an on-going, interactive process which consists of defining, documenting and the continually improvement of required capabilities. Any change to the environment, whether adverse or beneficial, wholly or partially resulting from an organization's activities, products or services is called its environmental impact. A significant environmental aspect is an environmental aspect that has or can have a significant environmental impact. There are three distinct requirements contained within this section of ISO 14001. First, the organization shall identify the environmental aspects of its activities, products and/or services. In other words the organization must understand how it interacts with the environment. Second, the organization shall identify the specific environmental aspects that can be controlled, and over which it can be expected to have influence. Third, arrive at a list of significant environmental aspects based upon the individual environmental impact of each environmental aspect. The importance of this third step cannot be underestimated. The final list of significant environmental aspects will provide the basis for the Environmental Policy statement, and the Environmental Objective(s) and Targets. In other The Department of Management Sciences Page 116 Internship report on Murree Brewery words the list of significant environmental aspects drives the entire content and scope of the operational portion of the environmental management system. The purpose of this activity is not to determine the importance of each aspect. The purpose is to create a complete listing of how the organization interacts with the environment. The organization must include the effect of non-routine situations in the listing such as emergency conditions, start-up and shutdown activities. The procedure that is developed to produce the list of environmental aspects must recognize the concept of continual improvement. Continual improvement refers to an ongoing process of performance enhancement. In the context of this environmental standard, it means that you need to enhance your organization’s overall environmental performance by enhancing its environmental management system and by improving its ability to manage the environmental aspects of its activities, products, and services. Continual improvements can be achieved by carrying out internal audits, performing management reviews, analyzing data, and implementing corrective and preventive actions. Murree breverages’s uses process of Gas emissions are any gaseous material released, either naturally or artificially, into the atmosphere. These gas emissions exist in a variety of forms: most notably water vapor, carbon dioxide, methane, nitrous oxide and ozone. The effects of these gas emissions come in the form of the greenhouse effect. Each of these gases absorbs radiation in the atmosphere, increasing the temperature of the Earth. Gas emissions from Boiler and Power House should have proper treatment because it causes air pollution, acid rain, global warming, and ozone depletion. We can minimize or pure the gases that come from Boiler and Power House through Electro precipitator technique. Murree breverages’s is using an electrostatic precipitator (ESP) or electrostatic air cleaner is a particulate collection device that removes particles from a flowing gas (such as air) using the force of an induced electrostatic charge The Department of Management Sciences Page 117 Internship report on Murree Brewery Income tax on the profit or loss of Murree breverages’s for the year comprises current and deferred taxation. Current and deferred tax is recognized in profit and loss account except to the extent that it relates to items recognized directly in equity in which case it is recognized in equity. Taxation charged in the financial statements is based on taxable income at the current rates of taxation after taking into account tax rebates and tax credits, if any. Deferred tax is accounted for using the balance sheet liability method in respect of all temporary differences arising from differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax is calculated at the rates that are expected to apply to the period when the temporary differences are expected to reverse, based on tax rates that have been enacted at the balance sheet date. Company is in the process of establishing and efficient Internal Audit Department to enhance the scope of internal control and data generated by the company, it also help in building the confidence of our creditors, financial institutions and other interested organization. Through out the Financial Analysis I noted that the Murree breverages is performing very well as compared to other companys. Due to the heavy expention in plant, property and equipment in 2008 there was fluctuation in the ratios during 2007 and 2008. In my openion the overall financial posetion of Murree breverages is quite strong. Murree Brewery is using two types of sales strategys. First one is distributor sales strategy and second one is Door to Door sales strategy. In Rawalpindi and Islamabad they use door to door strategy while in other cities they have distributors which are uses for sales purpose. These distributors are divided in routes and company gives them different task to achieve. The Department of Management Sciences Page 118 Internship report on Murree Brewery These distributors are provided by the demand form on which products of the company are listed. And the distributor placed the order on the demand form. It was pleasure for me to do work in this Organization. I was mainly entrusted with the duties of the area of purchases and payables in the finance department and in the sales department. I also work in the marketing department and work with the sales manager and visited different target markets. After visiting different target markets my suggestions and recommendation to the companies are. There is a need of strong communication within each department and between the departments.Internees should be free to visit all departments. Packages and bonuses must provide to the retailer because in company 90% salesman does not give attention to the market. They donot focuses on the replacement of products, and donot giving attention towards advertising of the products. There are no chillers of the company in the market. They are not focusing upon the marchandizing. My suggestions towards advertising Is that, Advertisements should target the entire family, mainly because it has been observed that irrespective of age and gender, more than 75% of the people have liked the product and look forward to buy it again. Advertisements should highlight the main features of the product that is the existence of pulp (which is already made prominent in Advertisements); it should lay emphasis on the health and nutrition value of the product and also on the fact that it is as good as fresh fruit juice. In my opinion the Sampling activity was a good first step into the area of Marketing and Sales. It gave good amount of exposure mainly because after being trained, trainees were given an opportunity to carry out the process ourselves. It helped in developing a considerable amount of convincing skills, because, it took a lot of it to convince the store managers to give us cooler space to cool the product for 2 hours and even more to convince the customers into tasting the product and to get reviews from them. A good understanding of the market was accomplished as around 700 people were spoken to and that group consisted of a variety of customers. The Department of Management Sciences Page 119 Internship report on Murree Brewery This even helped in the polishing of communication skills, a must-have to survive and make it big in the present world. It even gave a good understanding of behavior of customers when placed in different situations. It was a good opportunity to work on the skill of patience, as a large number of customers were to be dealt with. It helped in developing the kind of relations one needs to uphold in the corporate world and it helped in building up the right attitude. As all the points in the above mentioned paragraph, are the must-have skills for anyone in the field of Marketing and Sales, the training period was a good experience and a good stepping stone into the real business world. I know have the ability to fulfil customer requirements & expectations through CARE (Contionous improvement, Alignment of my missions and goals, Responsibility and respect of my job, and Educateing one another) “We respect our past. We are the industry leaders in present and accept the challenge of the future!!! The Department of Management Sciences ” Page 120 Internship report on The Department of Management Sciences Murree Brewery Page 121