Pel
Pel
Pel
PEL
BUSINESS POLICY
SUBMITTED TO:
SIR NAVEED AHMAD
Group Members:
Muhammad Saad Tariq F16-1036
Kashif Sohail F16-1310
Robinson Javed F16-1006
Table of Content:
1. Acknowledgment
2. Dedication
3. Executive Summary
4. Company Logo
5. Introduction
6. History
7. Company Operation
8. Product Line
9. Certification
10. PEL Hierarchy
11. Management Levels
12. Vision / Mission Statements
13. Mission Statement Analysis
14. Mission Statement Evaluation
15. PEL Customers
16. External Factors
16.1. Economics Forces
16.2. Political Legal & Govt Forces
16.3. Technological Forces
16.4. Social Cultural
16.5. Demographic & Environmental Forces
16.6. Competitive Forces
16.7. Porter`s Model
16.8. SWOT (OPPORTUNITY/ Threats)
16.9. External Factor Evaluation Matrix
17. Internal Forces
17.1. Management Function
17.2. SWOT (Strength /Weaknesses )
17.3. Internal Factor Evaluation Matrix
18. Market Analysis
18.1. Major Competitor
18.2. Market Analysis
18.3. BCG Matrix
18.4. Product Life cycle
19. Financial Analysis
19.1. Gross Sale
20. Strategies & Objective
20.1.1. Goals at PEL
20.1.2. Plan at PEL
21. Contemporary Issues in Planning at PEL
22. Objectives
23. Recommendation
24. Conclusion
Acknowledgment
It Gives Us Great Pleasure In Bringing Out This Report Of The Project Entitled
“PEL”. Firstly We Would Like To Thank Our Teacher And Our Group Members
Who Worked Hard In Preparation Of This Report And Shared Their Valuable
Suggestions And Ideas When We Were In Need Of Them. We Are Also Grateful
To Them For Giving Us The Opportunity To Work With Them And Providing Us
The Necessary Things For The Project. We Are Very thankful To All Involved In
This Project As Without Their Inspiration And Valuable Suggestion It Would Not
Have Been Possible To Develop The Project Within The Time.
History:
Pak Electron was setup in 1956 as a Public Limited Company with the object of initially
producing transformers, switchgears, and electric motors. AEG experts and PEL personnel
carried out the designing and production of this equipment jointly. After the conclusion of joint
venture agreement with AEG Saigol Group acquired the PEL COMPANY in October 1978. The
company floated its shares to the general public and was listed on Karachi Stock Exchange
(KSE) and Lahore Stock Exchange (LSE). In 1980, Appliances Division was established and in
1981 its starts the production of Window Type Air Conditioners with the technical collaboration
of General Corporation of Japan. This air conditioner was well received in the market for its
quality. Subsequently in 1987 the production of Refrigerators and Deep Freezers was started. In
1993 the company has started the assembly of Compressors for Refrigerators and Deep Freezers
under technical collaboration with Messrs. NECCHI COMPRESSORI of Italy. It was in early
70s that PEL became known in overseas markets due to its quality. The company started its
export to countries like Saudi Arabia, Abu Dhabi, Qatar etc. Later on PEL supplied electrical
equipments to various other countries in the Middle East, Far East and Africa with great success.
Company Operations:
PEL is the company of Pakistan .which is produce those thing which is use by Govt &
General Public. The company’s operations are divided into two divisions:
1. Power Division
2. Appliances Division
Product Lines:
Power Line:
1. Distribution Transformer
2. Dry Type Transformer
3. Power Transformer
4. PMT Transformer
5. Switchgear
6. Digital Energy Meters
7. Analog Energy Meters
8. EPC contracting
Certification:
The Company also provide their services related with their product which is certified
with these companies
PEL Hierarchy:
CHAIRMAN Director
Operations
Director
Manager
QC
Supply Power
Management Division
Finance /
Accounts
Chairman BOD
Managers 200
Executives 670
Workers 4274
Mission:
To provide quality products & services to the complete satisfaction of our customers and
maximize returns for all stakeholders through optimal use of resources. To focus on personal
development of our Human Resource to meet future challenges. To promote good governance,
corporate values and a safe working environment with a strong sense of social responsibility
Mission Statements Analysis:
Mission Components Included Not Description
included
Customers Loyalty
Products and Services To provide quality products
Markets
Technology use of resources
Concern for Survival maximize returns for all
Growth and Profits stakeholders
Philosophy Quality , customer care,
good governance, corporate
values
Self-Concept complete satisfaction of our
customers
Concern for Public Image strong sense of social
responsibility
Concern for Employees safe working environment
with
PEL Customers:
PEL have many customer including Govt & Private companies like
External Factor:
Economic Forces:
Devaluation of Currency
Interest Rate
Uncertain Economic Situation
Dumping Pricing.
Competition inside; China & Korea.
Competition outside; China, Korea, India & Turkey.
GST: 17%
Price Preference: 30% to the importing country.
Political, Legal & Govt. Forces:
Technological Forces:
New Products.
Extended Services.
New Emerging Markets.
New Marketing methods.
Supply Chain Management.
Manufacturing Process & Techniques
Social, Cultural:
Competitive Forces:
Substitute Products
(Medium)
Potential Entry of
new Competitors
(Low)
Suppliers Bargaining Power: Medium; Depends upon economy, source, time, demand, supply,
transportation mode and availability of raw material.
Substitute Products: A lot of registered companies having the product of same specification or
standard.
Buyers Bargaining Power: Tender advertised in daily newspaper. Lowest most responsive
bidder. Bound to contractual agreements.
SWOT (Opportunity & Threats):
OPPORTUNITIES:
Expansion of Energy Sector
Increase in Population
Large Product Range
Globalization
Joint ventures, merger, and acquisition or take over
THREATS:
Strong Competition
Chinese Products
Grey Market
Devaluation of Currency
Obsoleting of Technology
Rapid Changes in Government Policies
New Entrants
External Factor Evaluation:
Internal Factor:
There are Multiple factor involve which is effect internally like Management of the organization
is the number one factory which effect on company performance directly. Marketing is another
factory which is effect on company sales & promotion. Finance and Accounting is the factory
which base on company resources. Production Operation is the factor which belong to company
quality standards. R & D research and development is the factory which is base on company
innovations. MIS management information system then manage those information which is
useful for company.
Management Function Performed at PEL:
Planning:
Defining goals, establishing strategies to achieve goals, developing plans to integrate and
coordinate activities.
Organizing:
Team formation of each dept with the help of team leader Arranging and structuring work to
accomplish organizational goals
Leading:
Proper vision and direction of team leader Working with and through people to accomplish
goals.
Controlling:
STRENGTHS:
WEAKNESSES:
Financial Problem
Large overheads
High Prices
System Variation
Major Competitor:
PEL have tow Type of competitor which is follow as
1. Appliances
2. Power
Appliances Competitor:
There are some competitors which is compete PEL in field of home appliances
1. Dawlance
2. Waves
3. Haier
4. Orient
Power Competitor:
There are also some power Competitor which is compete it in field of Powers
1. Transformer:
2. Energy Meters:
3. Switchgear:
4. Power Transformer:
5. EPC Project
BCG MATRIX:
Product Life cycle:
Financial Analysis:
Gross Sales
In competitive environment challengers strategies are very significant to survive in the market.
Firms in this category can adopt one of the following strategies: The leader is attacked but it is
very risky and high payoff. Company can attack unprogressive and under financed firms, it is
less risky and less payoff it can also attack on small local and regional firms, it is neither risky
nor high payoff
Frontal attack:
The attacker matches its opponent price, product, advertisement and distribution. The principle
of force says that side with greater manpower (resources) will win
Flank Attack:
Segmental.
Geographical
Guerrilla Warfare:
It consists of small but continuous attacks to harass and demoralize the opponents.
Encirclement attack:
It involves launching grand offenses on several fronts attack on every feature of opponent’s
products
As far as PEL is concerned, it uses technological leap fogging strategy to attack. PEL is
launching products having several innovative features to differentiate its product from
competitors
Strategies Objective:
Financial Goals:
Target of reducing financial cost from 13%
Strategic Goals:
Plan at PEL:
Strategic Plans :
Operational Plans:
Criticisms of Planning:
Main flaw in today's planning lies with the energy crisis prevailing in the country.
Due to its dynamic nature the changes in plans are very frequent.
Different plans including sales and production plans need to be changed very often and is an
ongoing process.
Need to cater to market trends while planning and therefore being static or fixed is of no use.
Strategies:
Increase our Export
Increase in production
plant capacity
Retain local market share.
Lower production cost,not effecting the quality.
Change in internal design.
Superior on time delivery
Superior customer services.
Recommendations:
They should retire their expensive loans.They should carefully study their competitors.As
mentioned earlier company’s liquidity position is dismal. So they need to pay off their short term
loans.Their operating cost is very high so they should control their operating expenses. There
should be a continuous monitoring of performance. When performance deviates from plans one
does not have to wait for the next periodic review to correct it. The supervisor and subordinate
should discuss the situation immediately so the corrective actions can be taken at once in order to
avoid the major disasters. Whether performance appraisal discussions are held monthly,
quarterly, annually appraise should be clear about what he/she is doing right and wrong ,and how
he/she can overcome there deficiencies for the future appraisal. Performance appraisal should be
conducted in a way that employee should not perceive it as a fatigue or threat for there job but it
should take it as an opportunity to add or contribute more value in work of there organization
Conclusion
PEL has great strengths and opportunities
Should take risk and go to other markets
Management philosophy is the hurdle in the progress of the company
Take the advantage of today's media power to capture market
Future of PEL is very bright as it is grabbing opportunities and has the potential to
compete with challenges