NATIONAL UNIVERSITY OF MODERN LANGUAGES DEPARTMENT OF MANAGEMENT SCIENCES LAHORE CAMPUS

INTERNSHIP REPORT ON PAK ELEKTRON LIMITED

SUBMITTED BY ZAHID ZAMIR ROLL NO: LC-2112

____________________________________________________ Bachelor of Business Administration Session January 2009 to December 2012

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SUPERVISORY NOTE

National University of Modern Languages Faculty of Management Sciences

It is hereby certified that the report has been thoroughly and carefully read and recommended to the Faculty of Management Sciences for acceptance of final internship, by ZahidZamir Roll No.LC-2112, Session (Jan 2009 to Dec 2012) Morning, in partial fulfillment of the requirements for the degree of Bachelor of Business Administration of National University of Modern Languages Lahore.

Supervisor Name Supervisor Signature Panel Members Name Panel Members Signatures Head of Department

_______________ _______________ ________________ ________________ ________________

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LETTER OF TRANSMITTAL
To, Head of Management Sciences Department National Universit y of Modern Languages Lahore Campus.

Respected Sir, It is to present you the internship report which was executed at Pak Electron Limited to fulfill the requirements of BBA (HONS) degree program. This report is arranged according to the guideline given by the department. It was m y first professional experience. During internship I applied the knowledge that I gain from NUML. Through this report I introduce the Pak Electron Limited, its working structure and products, detail of m y working and learning from that company and impact of internship on m y career in future. I have tried m y best to explain the experience and knowledge that I have gained from internship, to make this report inclusive to meet the readers expectations. Regards, Zahid Zamir Roll No: LC-2112

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ACKNOWLEDGMENT
I have discovered a responsibilit y in me to learn from others that has shaped m y life. The work with some unidentified people makes life easier every day. I think it is a proper way to recognize all these strangers and those people who are close to me and have directl y shaped my life during m y work. First, I want to express m y gratefulness to m y parents for their persistent provision and encouragement which I receiv ed during my career. I have a great depth of thankfulness to all my teachers for their treatment and helping approach during my stay in the institution. I would like to thank them for his great help in carrying out m y duties. I would like to express m y app reciation to people who help me personall y during the course of m y studies. Last but not utmost, it forces me much to acknowledge those who helped me to get the knowledge of the marketing and support me constantl y during m y internship program.

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EXECUTIVE SUMMARY
Pak Electron Limited (PEL) is a standard of Saigol group of companies.Products manufactured by PEL always been the high level and the name (PEL) is symbol of excellence throughout the Pakistan. Since its beginning, the company has been working for the development and progress in Pakistan. The PEL has produced hundreds of engineers, skilled workers and technicians through its internship and training programs.The company consists of two divisions: The first oneis Appliances Division. This division consists of manufacturing

thespecific appliances likerefrigerators, microwave ovens, washing machines etc. The second division of PEL is the Power Division. PEL Power Division consists of manufacturinghigh -power electrical equipment like energy meters, switchgears and transformers etc. And these are supplied to WAPDA and KESC.In 1980 the company prolonged into consumer products with the introduction of window air conditioners and today also the split AC,

refrigerators, freezers, compressors andmicrowave ov ens.PEL products from the beginning have been of the highest standard and the name PELis synonymous qualit y throughout the Pakistan. Since its beginning, the company has been acting as an institution that works for the promotion and development of knowledge in Pakistan.

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Table of Contents
SUPERVISORY NOTE ........................................................................................................................... i LETTER OF TRANSMITTAL ...................................................................................................................ii ACKNOWLEDGMENT ......................................................................................................................... iii EXECUTIVE SUMMARY ...................................................................................................................... iv CHAPTER # 1: INTRODUCTION OF PAK ELEKTRON LIMITED 1.0 1.1 1.2 INTRODUCTION OF PELS BUSINESS ............................................................................................. 1 Power Division .......................................................................................................................... 2 Appliances Division ................................................................................................................... 3

1.3 PEL Appliances Ltd .......................................................................................................................... 4 1.4 PEL Daewoo Electronics Ltd ............................................................................................................ 4 1.5 History & Background ..................................................................................................................... 5 1.6 Mission Statement .......................................................................................................................... 7 1.7 Vision statement ............................................................................................................................. 7 CHAPTER # 2: DEPARTMENTS OF PEL 2.1 Marketing Department ................................................................................................................... 8 2 . 2 Finance Department...................................................................................................................... 9 2.3 Production Department ................................................................................................................ 10 2.4 Human Resource Department ...................................................................................................... 11 2.5 Administration Department .......................................................................................................... 11 2.6 Research& Development Department.......................................................................................... 12 CHAPTER # 3: PRODUCTS & SERVICES OF PEL 3.1 Products of Power Division ........................................................................................................... 13 3.2 Appliances Division ....................................................................................................................... 13 CHAPTER # 4: PERSONAL EXPERIENCE 4.0 PERSONAL EXPERIENCE..................................................................................................................... 17 4.1 New Things Learned ...................................................................................................................... 18 CHAPTER # 5 SWOT ANALYSIS OF PAK ELECTRON LIMITED 5.1 Strengths ....................................................................................................................................... 19 5.2 Weaknesses................................................................................................................................... 19 5.3 Opportunities ................................................................................................................................ 20 5.4 Threats .......................................................................................................................................... 20 NATIONAL UNIVERSITY OF MODERN LANGUAGES Page v

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CHAPTER # 6 PEST ANALYSIS OF PAK ELECTRON LIMITED 6.0 PEST ANALYSIS .................................................................................................................................. 21 6.1 Political .......................................................................................................................................... 21 6.2 Economical .................................................................................................................................... 21 6.3 Social ............................................................................................................................................. 22 6.4 Technological ................................................................................................................................ 23 CHAPTER # 7: SUGGESTIONS & RECOMMENDATIONS ON PEL 7.0 RECOMMENDATIONS........................................................................................................................ 25 CHAPTER # 8: CONCLUSION 8.0 CONCLUSION ..................................................................................................................................... 27

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CHAPTER # 1: INTRODUCTION OF PAK ELEKTRON LIMITED

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1.0 INTRODUCTION OF PELS BUSINESS
PEL is one of the oldest manufacturing units of Home Appliance in Pakistan. PEL products are produced of extraordinary qualit y and have been introduced over the years. PEL was established with the partnership of Technology AEG Germany in 1956. In 1980 PEL prolonged their business into consumer domestic market with introduction of window A C. In October 1978, PEL was attained by the Saigol group of companies. PEL has continued on the track of regaining of business, both in power and electrical divisions. Effo rts to increase efficiency, product qualit y and expansion have produced the positive results. While increasing business capacities that need surplus working capital have legitimate much and ease their cash flow, which could offer horizontal operations. Business in the Energy Division is endorsing confident and is estimated to develop more in the years certifying. PEL is travel around the export market for our food products division. The Crystal brand refrigerator launched in 1998 has become a captain source of our persistent development . This movement is expected to endure in the upcoming years. Furthermore air conditioner sales have not grasped the required ranks due to some severe fault in import processes and smuggled goods, the contractio n in the size of the labor market and capital controls. In order to get reliabilit y, customer base company is moving towards a strate gy of diversifying its product. As a result Appliances Division is being strengthened by which the marketing grid has extended with a focus on setting up the sales team
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and dealer network. 3S concept introduced above , is working effectivel y in our service network. Exceptional devotion is being given to going up the variet y of products introducing fresh models, sizes and colors. Demand for appliances and particularl y refrigerators which are emergent at a speedy level has improved mostl y by the increasing role of consumer financing through financial institutes and estimated schemes which are attained by retailers.

1.1 Power Division

Products manufactured in the power division are transformers, energy meters and switch gears. Business in this division has suffered seriousl y in recent years due to problems in absorptive WAPDA and KESC. The theft up gradation neediest WAPDA distribution was introduced by the new administration. The production of energy meter single phase and three phases are moving toward a finest level. The plans to improve productivit y and qualit y of our meters are also in growth. Our actions to suppl y distribution transformers for WAPDA have recentl y taken a significant enlargement . Subsequentl y, PEL is planning to increase our production volumeof transformers through improved methods of

production processes with the use of labor, produc t modernization and the process of re-engineering. We are waiting to get the level of production capacit y of 2,000 transformers per year. A break in the business through switchgear has been attained. PEL has successfull y supplied a large order of WAPDA switchgear against international bidding. Since all the
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activities of the Energy Divis ion are conducting against international tenders or advances, the chronic problem of late payments has also been resolute.

1.2 Appliances Division

Business in the appliances division has shown mixed trend but the company is finall y on the perfect track. Refrigerator glass with smooth design and Dan Foss compressor with certification of compliance with Dan Foss Germany was launched in February 1999. T his has been very well received in the market and our refrigerators sales have been increased. This trend is expected to continue in the coming year as a result of the company's innovative approach to product development, along with forceful marketing strategy. Freezer experienced and certified by Dan Foss Germany and value-added aesthetics has also been well received by the market. We have been suppl ying our Deep Freezers to Coca-Cola International and Lever Brothers and intend our attention on institutional sales of this product. Sales of window air conditioner is about the same level as last year, but have not reached the desired level with pressure on prices and exchange rates are caused the losses to back up PEL Limited. The core cause for this situation is a massive arrival of imported products in addition of smuggling suppl y of air conditioners. It is estimated that after terminating old stocks of smuggled goods have been drained and fresh supplies are not permitted. The company to compact with the ab ove situation has boarded on a major plan to improve
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product qualit y, expand product range, introduce energy proficient

models, add competitive features such as remote control, added filters, and to improve the product creativel y. After continuous struggles in recent years PEL have been able to develop a new variet y of models with the brand names of "energy saving". Cooling and balance of this machine is experienced and certified by U.S. Copeland. This has received a very optimistic response from the market because of its energy proficiency savings, cooling, low noise, compact size and features friendly character. PEL expects that the company will make breakthrough the capacit y of energy savings as we have done effectivel y in the case of Cristal brand refrigerators. It also a great exercise that is being done to decrease material costs and improve the manufacturing process. Technical support of international companies and foreign laboratories made this goal to much energetic.

1.3 PEL Appliances Ltd

Freezers and window air conditioners are subsidiary products.

Optimisticall y, PEL Appliances Limited will travel to a recovering condition in the following years.

1.4 PEL Daewoo Electronics Ltd

Contract for converting Sony television plant was finalized and PEL has started production of its products since May 1999. Under this setting up televisionequipment are supplied to us by Sony and then these necessaries
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are renewed into television and are marked through its own system.TV tariff structure has been reorganized in the federal budget for 2001 -2002 and as a result blessedness of locall y enlarged televisions has upgraded significantl y. Sony aims to take full advantage of this situation and capacit y of locall y assembled televisions resultantl y is estimated to increase miscellaneous. Agreement for the makeover of the flat screen TV has been finalized and excellentl y started production in September 2000.

1.5 History & Background

Pak Elektron Limited (PEL) is the innovator manufacturer of electrical appliances in Pakistan. It was established in 1956 in

mechanicalcoalition with AEG of Germany. In October 1978, the company was recognized by the Saigol Group of Companies. At that time, the company was manufacturing onl y transformers and circuit breakers. With Saigols in supervision, PEL initiated increasing its product range by entering into the manufacturing of air conditioning. In 1981, the company startedto manufacture window air conditioners . In 1987, while expanding the product assortment further, the company started to manufacture refrigerators and freezers. In 1988 , a subsidiary company was established which is called the (PEL Appliances Limited ). In 1992, the product variet y againprolonged and company start to manufacturing energy savers . In 1993, it established a joint venture with (Daewoo Electronics Limited ) of South Korea to manufacturethe color televisions.PEL is one of the prominentmanufacturers of electrical products in Pakistan, concentrating
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on consumer and engineering sections . The company has a resilient presence in the power equipment market and is well recognized in the appliance market. The Energy Division mainl y manufactures transformers, energy meters and circuit break ers and is a prominent supplier to WAPDA and KESC and commands a market share of approximatel y 36% in transformers, 35% of energy meters and 34% in switch gears. These actions are based on the allocation of orders by WAPDA, KESC and deliveries to private consumers. The PEL Appliances Division has a resilient position in the local market of home appliances, specifying in refrigerators and air condit ioners, with an expected market share of 28% and 10% correspondingl y. In the last five years, the companies have made the substantial improvement to increase the sale through product

modernization, competitive prices and a durable distribution set-up. The industry of consumer durables has recently experienced prompt growth in demand compelled by low commodit y prices, the introduction of consumer finance initiatives, low interest rates and the purchasing power of consumers has improved. In the same way, the construction movement in the country and upgrading of the set-up of the WAPDA and KESC are the main drivers behind the growth of food industry equipment. PEL is in healthyposition indevelopment of consumer appliances and power

equipment markets. The quest ion is to certificate that PEL should finance their advance needs. Both subsidiaries namel y (PEL Appliances Limited (PAL) and PEL Daewoo Electronics Limited (PDEL) had be merged into

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PEL through the decision of Resolutions by the Honorable High Court, Lahore. Since its beginning, the company has always been contributing to the advancement and expansion of the engineering sector in Pakistan by introducing a range of excellent electrical utensils and appliances and by producing hundreds of engineers, technicians and skilled workers through their internship and training program s.

1.6 Mission Statement

Providing qualit y products and services for the customer

satisfaction tomaximize profitabilit y for all stakeholders through the finest use of possessions . Focus on the personal development of our human resources t o meet future experiments through good governance, corporate values and a safe working environment with a strong wisdom of social

responsibilit y.

1.7 Vision statement

To excel in providing engineering goods and services through continuous improvement

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CHAPTER # 2: DEPARTMENTS OF PEL

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2.0 DEPARTMENTS OF PEL
Th er e a r e 6 m aj o r d ep a rt m en t s i n P E L whi ch ar e a s fo l l o w: Ma rk et i n g D e pa rt m e nt Fi na n ce De p ar t m ent P ro du ct i on D ep a rt m ent Hum an De p ar t m ent Adm i ni s t r at i on D e p a rt m ent R es e a rc h & D ev el op m en t D ep ar t m ent

2.1 Marketing Department

Thi s d ep a rt m e nt i s c ont ro l l ed b y t h e Ma na gi n gD i r e ct or . Th en f ur t h e r dow n t h e hi er a r ch y a re : B r and M an a ge r s. C r edi t Di st ri but i on Ma na ge r . C ust om er s e rvi c e a gent s. In s t i t ut i o n al sa l e s m an a ge r .

Th er e a r e s i x b r an c he s o f P E L i n P ak i s t an . Th e y a r e i n c ha r ge of R e gi on al S al e s M an a ge r (R S M) . P ol i ci es s u gge st ed b y t h e s al es o f fi c e f or t he wh ol e r e gi on. Th e cu s t om e r s e rv i c e po l i ci e s ar e d ef i n ed b y t h e C ust om e r S er v i c e M a na ge r of t h e o ff i c e . Th e obj e ct i v e s a re gi v e n t o r e gi on al s al es m a n a ge r of e ac h p ar t i cul a r r e gi on a nd ad di t i on al obj e ct i v e a re p e r fo rm ed b y t h e R S M an d s al es a gen t s t o a chi ev e t h e d e m an d.

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In La h or e , t hi s d ep a rt m en t i s u s e u p b y t he s e p e opl e w ho a r e as fol l ow : RSM S al es A r e a M a na ge r S al es Ex e c ut i v e

Thi s d e p art m e nt co nt r ol s t he 4P s o f m a rk et i n g l i ke pr o du ct , p ri ci n g, P l a c em ent an d p r om ot i on . Th e y are a l so r es p ons i bl e f or the

m odi fi c at i on and m odi fi c at i o n o f t h e va ri ous b r an ds o f t he com p an y an d n e w p ro du ct s. Th e y m a y r e c om m e nd ch an ge s i n col o r an d s i z e of pr odu ct t h at i s be i n g u s e d b y c ust o m e rs. Th e y t r y t o i nt r od uc e m od e rni z at i ons i n pr odu ct s t o m ak e t hem e ye - c a t chi n g f or cus t om e rs an d t o com p e t e w i t h c om pe t i t o rs D a wl an c e, W a ve s et c. Th e re a r e pr i nt an d el e ct ron i c m ed i a fo r a ct i v e sup po rt t he i d e a .

2.2Finance Department
Th e de p art m e nt i s or ga ni z ed b y t h e C hi e f F i n an ci al O f fi c er . T he m ai n r es p ons i bi l i t y of t he fi na n ce d ep a rt m en t i s t o p ro vi d e fun di n g i n a cc o rd an c e a cc o rdi n g wi t h to t he com p an y n e ed an d p ol i c y for di f fe r en t d ep a rt m en t s fo r e a ch

t h ei r

s u st ai n

fi n an ci al

bud ge t

de pa rt m e nt i n d ep en de nt l y. A l l pu r ch as es ar e m ad e wi t h t he fi na n ce de pa rt m e nt ; t hi s de pa rt m e nt i s di vi d ed i nt o t h r e e s e ct i on s: Fi na n ce Ac c ou nt s C r edi t C o nt rol

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Fi n an c e Fi na n ce d e al s wi t h B an ks Ac c ou n t s Ac c ou nt s a r e d e al wi t h t h e co st i n g s yst e m , bi l l i n g, o pe r at i ons m an a ge m e nt a nd i nt e rn al a udi t . Cr ed i t C on t r ol Thi s s e ct i o n of t he fi n an c e d e pa rt m en t h an dl es c r edi t an d

r ec ov e r y p ro c ed ur es .

2.3 Production Department

Thi s d e pa rt m e nt h a ndl es t h e m anu f a ct u r e o f p ro du ct s . Thi s d ep a rt m ent i s gi v en b y t h e obj e ct i v e s of s en i o r m an a gem e nt t o p ro du c e a nu m b er of p ro du ct s t ha t a re d et e rm i ne d b y past s al es d at a an d m a rk et co ndi t i o ns. T hi s de pa rt m e nt i s r e spo ns i bl e fo r q u al i t y co n t ro l , so fo r ex am pl e w e s ee t hat t h e r e a r e no de f e ct s o r d ef i c i e n ci es i n an y pr odu ct . In a b ro ad , i t i s a h abi t t o i m pl em ent n ew t e ch nol o gi es an d t o ke ep u p t o d at e on a n y n e w m a chi n er y o r ot he r e qui pm e nt t o ge t a bet t e r p r odu ct p er fo rm an c e. Af t e r t he m an uf a ct ur e o f a n ew pro du ct , i t i s t r ans po rt ed t o Ge rm a n y fo r t ec h ni c al ass es sm ent f o r Da n F os s

C om p an y. A ft e r a ut ho ri z a t i o n of t h e s a m e, t he n i t s m aj o ri t y p ro du ct i on i s s t a rt ed .

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2.4 Human Resource Department
Thi s de p ar t m ent u ses t h e f or ei gn e m pl o ye e s el e ct i on cri t eri a i .e . di f f e re nt s et s o f gui de l i n es f or se l e ct i n g e m pl o ye e s. A ft e r sel e ct i on of t he e m pl o ye e s b ut al s o p ro vi d e t r ai ni n g a nd i m p ro ve t h ei r s ki l l s.T h e he ad o f hum a n r eso ur c es d ep a rt m en t c a l l e d Hum a n R es ou r c es M an a ge r. Fu n c ti on s R e c rui t m ent S el e ct i o n T ra i ni n g T ra ns f er Fi ri n g d ec i si ons La b or A f f ai rs S t a f f W el f ar e Hum an re so ur c e pl a nni n g fo r t h e n ex t f i ve ye a r s.

2.5 Administration Department

Th e m ai n r esp on si bi l i t i es a r e: Mai nt en an c e S up po r t Mai nt en an c e o f P ri n ci p l e s In s p e ct i o n of t h e m at e ri al i n an d out o f t h e f a ct o r y Mai nt en an c e F a ct or y Ass i st al l de p art m e nt s a bou t m at e ri al s

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2.6 Research& DevelopmentDepartment
This is the most important department regarding the future of the company as a market leader in this department is continuall y in touch with the market to meet customer preferences and product specifications.After a thorough anal ysis of customer expectations then this department gives its recommendations to senior management for changes in the product for market success. This department conducts market surveys to obtain information. This department is also responsible for bringing new technologies into products.

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CHAPTER # 3: PRODUCTS & SERVICES OF PEL

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3.0 PRODUCTS & SERVICES OF PEL
The company comprises of two divisions: Appliances Division Power Division

3.1 Products of PowerDivision

The Power Division of PEL has following products; Power Transformer Distribution Transformer Dry type Transformer Energy Meter Switch gear Transformer Services

3.2 Appliances Division

Business in the appliances division has shown mixed trend, but the company is finall y on track. Crystal Fridge with aerodynamic design and Dan Foss compressor with compliance authorization Germany was Dan Foss launched in February 1999. This has been very healthy received in the market and our refrigerator sales have shown an increase of 125% since 1999. This trend is expectable to continue in the upcoming year as a result of the company's innovative methodology to product improvement with marketing strategy. Deep an aggressive freezer experienced and

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licensed by Dan Foss developed aesthetics Germany and has also bee n well received by the market. PEL has been suppl ying our Deep Freezers to Coca-Cola international and lever Brothers and aim to continue our attention on institutional sales this product. Sales window air conditioner is not closel y on the same level but have last year reached the desired level with a pressure on prices and the impact exchange rates causing increased losses of the subsidiary Appliances Limited PEL. The main cause for this condition is an enormouscoming of imported products as a result of the change in the assessment recorders that allow during prices imports and under-charging. In addition , smuggling suppl y air

conditioning also persistent after the announcement by the Government to execute such activities controls on. It is estimated that after terminating old stocks of smuggled goods have been bushed and other supplies are not certified. The company to deal with the above circumstances has get ona key plan to increase product qualit y, expand product series, introduce models power effective, adding competit ive sorts such as remote control, filtered added and to improve product aesthetics. After continuous efforts in years the recent PEL have been able to develop a new range of models from Energy Saver under the name. "Cooling and this machine balance is tested and certified by U.S. Copeland. This has very positive received a response from the market because their savings from energy efficiency, cooling, low noise, compact size, features friendl y character. PEL expects that the company will mak e a development in the amount of energy

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savings as we have successfull y performed in the case of the addition of Crystal Refrigerators. In mark being a great workout to do to decrease material costs and improve manufacturing process. Technical support and know how being acquired international companies and foreign laboratories for achieve this goal.

3.2.1 Appliance divisions products 3.2.1.1 Refrigerators

PELs refrigerators are available in 6 series of different colors, models, prices, and capacities. The series are as follow Expression Series Premier Series 6-Series Deluxe Series Smart Series Mini Series

3.2.1.2 Air Conditioners

The air conditioners are available in three types; Split Air Conditioners Window Air Conditioners Floor Standing Air Conditioners

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3.2.1.3 Microwave Oven
PEL also introduced series of furnace models "Silver PEL line" Microwave. PEL offers 26 different oven models with different prices, models and dimensions.

3.2.1.4 Washing Machine

PELs washing machines are available in different models. The series are as follow: Magic Clean PWM7700 Magic Clean PWM512

3.2.1.5 Water Dispensers

PEL also introduce water dispensers. The main objective of introducing isto increase its product line and provide value to customers.

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CHAPTER # 4: PERSONAL EXPERIENCE

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4.0 PERSONAL EXPERIENCE
My knowledge of Marketing and Advertising helped me while doing internship. I learned a lot during this activity that how much important it is to organize the things in proper manner, sending advertising material (posters, stickers, wobblers, buntings, banners etc.) and letters or

notification to all area sale offices of PEL. Randomly calling existing customers in different areas of Pakistan and asking them if they were gratified with the product they purchased, and then make a customer satisfaction report. Visit to Lahore sales office in order to ge t the information regarding PEL competitors. Preparation of the comparing report of competitors and world wellknown brands in order to make easy to compare and know the strength and weaknesses of PEL home appliances. Assisted sales manager in Preparation of daily sales and collection report. I participated with our Print Media manager and select the price tags which have circulated all over Pakistan in PEL presentation and whole sale centers. I used to receive updates about demand of our products.

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4.1 New Things Learned

Some of the new things I learned here were which are as follow: How to motivate others. How to work both individuall y and in groups in a stress-free andtense condition. Working under the command of someone. How to manage the business while introducing new products. Tolerance is very important in relationships, like anger can lose your customer . To increase sales and stay competitive with the best brands that is necessary to keep their dealers happy by giving them incentives. How to consolidate with other sales areas of PEL by phone / fax. How to deal with customer complaints, so of satisfy them. How to manage promotional materials. How to manage time for several instant tasks in hours. How to bring about communication between different departments .

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CHAPTER # 5: SWOT ANALYSIS OF PAK ELECTRON LIMITED

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5.0 SWOT ANALYSIS OF PEL
The following is an assessment of the strengths, weaknesses,

opportunities and threats of Pak Elektron Limited:

5.1 Strengths
Widespread focus on supreme qualit y of products Strong brand image Strong dealer network Strong grip in home appliances Highl y skilled and expert Management Modernized research and development department High qualit y p roducts and brilliance after sales service

5.2 Weaknesses
Lack of advertisement Lack of product range as compared to competitors Weak marketing strategies than competitors Vast unreached markets of Pakistan as PEL has dealer networks in onl y 24 cities of Pakistan PEL is not conducting E -Business and some of its comp etitors are conducting business online like Waves PEL is not providing products on credit

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5.3 Opportunities
Reaching the large unreached markets of Pakistan Formation of strategic alliances with potential partners Online and more modified marketing Transmission of online business along with traditional element and pointing business Foreign alliances especiall y in technology and development Increase in product range Increase in production capacit y Reaching foreign markets

5.4 Threats
Strong competition both in appliances and power products industry Un-explored markets may be confronted by foreign companies Financial Problems Weakening political conditions Increasing prices due to inflation Slow growth rate in Pakistan Uncertaint y of government Increase in fuel prices & electricit y power failure Difficulties in recovery from debtors i-e liquidit y problems

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CHAPTER # 6:PEST ANALYSIS OF PAK ELECTRON LIMITED

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6.0 PEST ANALYSIS 6.1 Political
The political environment in Pakistan has been presenting quite unsteady and affecting circumstances to virtually all the business in the country. Sadl y the condition has much emphasized in the recent periods. Where the political and governmental policies and conditions influence all

businesses in one way or the other, the relative impact and importance of the fundamental political situation can be determined according to the nature of the commerce and the kinds of establishments it has with the external entities for its operations and market. With a sound

establishment, nature of products (white goods) and a leading group of companies, PEL has a buffer to its advantage against the ever changing political conditions. Proprietorship by such a prominent group brings opportunities concerning politicization for governmental policies and other politicall y relating concerns.

6.2 Economical
The econom y is facing a far stretching inflation period supplemented by a severe energy crisis which has not affected onl y the market but also the costs of production and the suppl y chain. The demand for refrigerators - a power product of PEL in home appliances, and A/Cs, as well as other products, has been comprehensivel y affected due to frequent power outages and increase in utilit y charges. On the contrary, the conditions
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have increased the demand for generators . The increase in costs of production can be signified by an increase in utilit y expense by approximatel y 10 million rupees a month, where the company meets the power shortage through its own generators. So as a result the retailers a suppl y chain will beaffected. As per the future prospects, major

investments in the energy sector are to be expected . If such struggles by public and or private enterprises come by, should provide PEL with an opportunit y for its power products, which includes commercial t ype electrical equipment like transformers, switch gears and EPC contracting.

6.3 Social
Pakistan is anleast developed country with a large population base. Certain dynamics over the years have shaped the consumer first choice categorized by an increasing demand in home appliances. However a standard underl ying consumer buying decisions is to prefer imported brands, when personal economics are no restriction. However, an

increased reliance on locall y manufactured and branded goods has increased over the recent times, as a healthier competition has ris en following establishment of various manufacturers with in the country. Regarding marketing ethics and environmental concerns, though

awareness has increased over recentl y, appeal to such problems and concerns by the general public remain low.

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6.4 Technological
PEL being a home and power appliances company appeals a close relation with the technological environment available in Pakistan. This environment itself has improved over the years and provided opportunities for new- technologicall y more advances ventures, such as added production lines for more advanced kinds of A/Cs, Refrigerators and better power appliances. Though the technological environment in Pakistan may not be advances to a high degree, it still provides a good base line fo r an appliances company that is not involved in difficult and high end products, but rather requires more of a common technology. The competitive advantage and marginal decreases in costs of production for appl ying technology in Pakistan however may be arg ued over. The capital costs for bringing in new technology may exceed the choice of using labor- for labor costs are lower in Pakistan. On the contrary, technology may provide a higher level of qualit y. Thus there lies the principle of trade-off between costs vs. qualit y. Currentl y the technological environment in Pakistan does offer a higher level of technology but with higher costs. Thus where the marginal cost may decrease the overall investment may not suggest that PEL would essentiall y do so as it is not currentl y involved in the production of high -end products, which can be produced equall y goo d by a much cheaper labor. The technological environment regarding communications has substantiall y increased over the recent years. Such advancement has assisted PEL to provide better

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customer relationship management (CRM). PEL has a well-established network of more than 1300 dealerships, display and customer care center that communicate with a central customer service department and a call center. The system k eeps a close watch on the day to day bas es and enjoys good relationship with its customers.

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CHAPTER # 7: SUGGESTIONS & RECOMMENDATIONS ON PEL

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7.0 RECOMMENDATIONS
After looking into different weaknesses and future threats I recommend the following steps to PAK Elektron Limited in order to deal with future problems. PEL should present a true decentralize setup in the

organization, giving everyone some grounds for decision making, increase employees involvement in day to day planning an d recollect back the assurance plus satisfaction of the employees.PEL should also consider the importance of advertising for their new products, which plays an important role in raising awareness, customer favorites and maximizing market share. It should also use some tools such as organizin g

promotional events, programs and gift.PEL needs to strengthen its monitoring and inspection network in order to minimize the miss -use of resources by employees and verify the correctness of the data collected by them. PEL should also make sure equal price incentives to all the retailers in order to increase their willingness to offer more shelf space to the company.PEL should also take care of the economic, political factors such as inflation, Government Policies while projecting the cost of p roduction for future because this will help the company in entering into a fix price contracts for the purchases of material at a single time similarly than it will be able to charge stable prices to its customer.PEL should also adopt any other methodology for projecting upcoming time period sales, which should include seasonal factors consideration in order to get accurate
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future assessments. As brand name is very important factor in consumer buying behavior, thus it is advised that PEL should work on the brand image. It already has a strong brand name but it has more to do, mainl y through advertising, to compete with its direct competitors and other international brands. The company should add more features to their products. People are attracted towards a product with unique features and something that would make the customers feel that they have got their moneys worth. The company should take measures to improve the qualit y of their products. Thus the company is directed to take steps towards improving the quality of its products and cosmetic features; otherwise it will lose a portion of potential customers to their competitors.PEL should have to cut down on the great margins to the dealers and give more incentives to the consumers to healthier competition in the market from push strategy to pull strategy.PEL extraeffort should be on electronic media to get competitive advantage over the competitors. They have to increase their advertising expenditures. Introduction of seasonal schemes can help to increasesales. And PEL should also provide goods to distributors on credit.

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CHAPTER # 8: CONCLUSION

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8.0 CONCLUSION
M y own finding is that people while purchasing a specific item have anexcessivecourtesy in thebrand name, qualit y and features. Strong brand name has very good impression in consumers mind and they usuall y favor to purchase the same brand which they believe that is remarkable. As now a day s consumers demand is for Haier & Dawlancerefrigerator. People have strong guarantee in these brand names. All other factors like price, advertisement, word of mouth and even dealers are secondary importance in this concern. I believe that PEL is focusing more on Push Strategy & Dealers network rather than Pull Strategy to create consumer demands in the market. PEL is not targeting through nominal advertising, directing marketing efforts by using progressivesupportive communication tools. This is factual that new technologies and designsgenerate new customsfor marketers to reach & anal yze consumers interactivel y, but still greater part of consumers in Pakistan is being affected by traditional media Television, Magazines and Newspapers. Although PEL is doing some advertising efforts but problem is that there is no creativit y in ads.

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GLOSSARY:

PEL LDC PAL

Pak Elektron Limited Least Developed Country. PEL Appliances Limited .

PDEL PEL Daewoo Electronic Limited . KESC Karachi Electric Suppl y Limited . CRM Customer Relationship Management. RSM Regional Sales Manager.

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REFERENCES:

www.pel.com.pk

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