pel strategy management project
Post on 08-May-2015
1.337 Views
Preview:
TRANSCRIPT
Pak Elektron Limited.
Strategic Management Group MembersUmer Shahzad 17Muhammad Usman 20Hafiz Farhan Saleem 28Umer Farooq 45Sajjad Zafar Pirzada 52Muhammad Umar Farooqi 145
Introduction By Muhammad Usman Roll # 20
TEXTILESKohinoor IndustriesAzam Textile MillsSaritow Spinning
311,678500569
SECTORS COMPANY TURNOVERMUSD
EMPLOYEES(Nos.)
ENGINEERING Pak Elektron Ltd.
232 7,036
FUEL & ENERGY Kohinoor PowerKohinoor Energy 86 98
137
TOTAL 349 10,018
PEL is a flag bearer of Saigol Group
PEL Introduction
Pak Elektron Limited.
PEL Introduction
• Pioneer manufacturer of electrical goods in Pakistan• One of the oldest and amongst the leading Home Appliances
Manufacturer and Distributor in Pakistan.• The company has an annual turn over of Rs 20.3 billion.• It was established in 1956 in technical collaboration with M/s AEG of • Germany.• In October 1978, the company was taken over by Saigol Group of• Companies.• Since its inception, the company has always been contributing
towards the advancement and development of the engineering sector in Pakistan.
Pak Elektron Limited.
Historical Overview
Pak Elektron Limited.
Company’s operations are divided into two divisions:
1) Power Division 2) Appliances Division
COMPANY OPERATIONS
Pak Elektron Limited.
PEL Product Line
Pak Elektron Limited.
PEL Product Line
DISTRIBUTION TRANSFORMER
POWER TRANSFORMER
DRY TYPE TRANSFORMER
SWITCHGEAR
PMT TRANSFORMER EPC CONTRACTING
Pak Elektron Limited.
CERTIFICATION
Source: www.pel.com.pk
Pak Elektron Limited.
Chairman
Director Operations
Managing Director
Power Division
Sales & Marketing
Manufacturing
EPC Contracting
Appliances Division
Sales & Marketing
Manufacturing
Finance
Finance / Accounts
Supply Management
QA&QC
HRD / IR&A
Internal Audit
PEL HEIRARCHI
Pak Elektron Limited.
Chairman BOD
Managers
200
Executive
670
Line Staff
800
Workers
4274
Management Level sat PEL
Pak Elektron Limited.
VISION
“To excel in providing engineering goods and services through continuous improvement.”
MISSION STATEMENT
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 VISION
Pak Elektron Limited.
Mission Components Included Not included Description
Customers ● Customers
Products and Services ● To provide quality products
Markets ●
Technology ● use of resources
Concern for Survival Growth and Profits ● maximize returns for all 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 -
Mission Statement Analysis
Pak Elektron Limited.
Key Variables Case Facts Evaluation
Broad in Scopequality products & services, complete satisfaction of our
customersAcceptable
Length (Less than 250 words) - Acceptable
Inspiring - -
Identify the utility of the firm’s products - Mentioned
Reveal that the firm is socially responsible strong sense of social responsibility
Mentioned
Reveal that the firm is environmentally responsible safe working environment Mentioned
Include Nine Component 9 out of 9 Acceptable
Reconciliatory - Unspecified
Enduring - Unspecified
Mission Statement Evaluation
Pak Elektron Limited.
PEL Major Customers
Utility: WAPDA, PEPCO, KESC & AJK-ED.
TRANSCO: NTDC.
DISCOs: TESCO, PESCO, IESCO, LESCO, FESCO, GEPCO, MEPCO, SEPCO, HESCO & QESCO.
GENCOs.
IPPs & RPPs.
Private customers.
Pak Elektron Limited.
External Factors By Umar Farooq
Pak Elektron Limited.
• 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.
External Forces
Pak Elektron Limited.
• Political, Legal & Govt. Forces:– Frequently Changes in tax laws– Unstable Political Environment– Energy Crisis– Local Rules: PPRA Rules.– International Rules: World Bank, ADB & JICA Rules.– “Lowest most responsive”.– No negotiations.– Bank Guarantee; 10% of Bid value.– Performance Guarantee; 10% of Purchase Order value.– Bound to Contractual agreements.
External Forces
Pak Elektron Limited.
• Technological Forces:– New Products.– Extended Services.– New Emerging Markets.– New Marketing methods.– Supply Chain Management.– Manufacturing Process & Techniques.
External Forces
Pak Elektron Limited.
• Social, Cultural, Demographic & Environmental Forces are not effective.
• Competitive Forces:– More than 50 competitors.– New Entrants.– Low pricing.
External Forces
Pak Elektron Limited.
PORTER’S MODEL
Substitute Products (Medium)
Rivalry amongst Competitors (High)
Bargaining Power of Suppliers (Medium)
Bargaining PowerOf Consumers (High)
Potential Entry of newCompetitors (Low)
Pak Elektron Limited.
PORTER’S MODEL
Rivalry amongst competitors: Modestly High
Potential New Entrants:1 to 2 new competitors every year.
Suppliers Bargaining Power:Medium; Depends upon economy, source, time, demand, supply, transportation mode and availability of raw material.
Pak Elektron Limited.
PORTER’S MODEL
Substitute Products: A lot of registered companies having the product of same specification or standard.
Buyers Bargaining Power:Tender advertised in daily news paper.Lowest most responsive bidder.Bound to contractual agreements.
Pak Elektron Limited.
SWOT ANALYSIS
OPPORTUNITIES
Expansion of Energy Sector
Increase in Population
Large Product Range
Globalization
Joint ventures, merger, acquisition or take over
Pak Elektron Limited.
SWOT ANALYSIS
THREATS
Strong Competition
Chinese Products
Grey Market
Devaluation of Currency
Obsoletion of Technology
Rapid Changes in Government Policies
New Entrants
Pak Elektron Limited.
EFE Matrix
Key External Factors Weight Rating Weighted Score
Opportunities Expansion of Energy Sector 0.10 3 0.30
Increase in Population 0.05 2 0.10
Large Product Range 0.10 3 0.30
Globalization 0.04 3 0.12
Joint ventures, merger, acquisition or take over 0.05 2 0.10
Threats
Strong Competition 0.16 4 0.64
Chinese Products 0.10 3 0.30
Grey Market 0.04 1 0.04
Devaluation of Currency 0.10 3 0.30
Obsoletion of Technology 0.06 2 0.12
Rapid Changes in Government Policies 0.10 2 0.20
New Entrants 0.10 3 0.30
Totals 1.00 2.82
Pak Elektron Limited.
Internal Factors By Farhan Saleem Roll # 28
Pak Elektron Limited.
Pak Elektron Limited.
• Management• Marketing• Finance and Accounting• Production Operation• R & D• MIS
Internal Factors
Pak Elektron Limited.
Management Function Performed at PEL
PlanningDefining goals, establishing strategies to achieve goals, developing plans to
integrate and coordinate activities.
OrganizingTeam formation of each dept with the help of team leaderArranging and structuring work to accomplish organizational goals
Leading Proper vision and direction of team leaderWorking with and through people to accomplish goals.
ControllingMonitoring, comparing, and correcting work
Pak Elektron Limited.
PEL SWOT ANALYSIS
STRENGTHS
ERP Based Company Strong Brand ImageStrong Dealer NetworkNumerous Super Brand Award State of the art plantOne of the largest manufacturerStrong R&D DepartmentStrong After Sales ServiceCompliance of International Standards
New Transformer Factory
Pak Elektron Limited.
PEL SWOT ANALYSIS
WEAKNESSES
Financial Problem
Large overheads High PricesSystem Variation
Pak Elektron Limited.
IFE Matrix
Key Internal Factors Weight Rating Weighted Score
Strengths
Strong Brand Image 0.15 4 0.60
Strong Dealer Network 0.15 4 0.60
Numerous Super Brand Award 0.05 2 0.10
State of the art plant 0.10 3 0.30
One of the largest manufacturer 0.05 3 0.15
Strong R&D Department 0.05 3 0.15
Strong After Sales Service 0.05 3 0.15
Compliance of International Standards 0.10 3 0.30
Weaknesses
Financial Problem 0.10 2 0.20
Large overheads 0.05 3 0.15
High Prices 0.10 2 0.20
System Variation 0.05 2 0.10
Totals 1.00 3.00
Pak Elektron Limited.
Market Analysis By Umar Shahzad Roll # 17
Pak Elektron Limited.
Major Competitors of Appliances Products
1-Dawlance
2-Haire
3-Orient
4-Waves
Pak Elektron Limited.
Major Competitors of Power Products
1-Transformer:
2-Energy Meters:
3-Switchgear:
4-Power Transformer:
5-EPC Project
substation, Rawalpindi DHA substation Isld Substations, in Nigeria
Pak Elektron Limited.
Market Analysis
PEL29%
Siemens
15%
Elmetec10%
Trans-fopow
er21%
Others25%
PEL
Siemens
Elmetec
Transfopower
Others
Pak Elektron Limited.
BCG MATRIX
Distribution Transformers
Power Transformers Refrigerator
Question Mark Instrument Transformer Water Dispenser Floor Standing
Cash Cow
Energy Meters Switchgear Panel Split AC
Dog
Generators Washing Machine
Mar
ket
Gro
wth
Market Share
High Low
Hig
hLo
w
Export Marketing-PEL
Pak Elektron Limited.
PRODUCT LIFE CYCLE
PEL Company PEL Transformers
Introduction Growth Maturity Decline
Sales and Profits
TimeDevelopment Introduction Growth Maturity Decline
Sales and Profits
TimeDevelopment
Export Marketing-PEL
Pak Elektron Limited.
Financial AnalysisBy Sajjad Zafar Pirzada Roll # 52
Pak Elektron Limited.
FINANCIALS
• Gross Sales: Rs. 20.3 Billion.• Net Sales: Rs. 17.7
Billion.• Gross Profit: Rs. 3.60 Billion.• Net Profit: Rs. 0.12
Billion.89%
11%
Gross Sales
Power DivisionAppli-ances Division
Pak Elektron Limited.
FINANCIALS
Pak Elektron Limited.
FINANCIALS
Pak Elektron Limited.
FINANCIALS
Pak Elektron Limited.
FINANCIALS
Pak Elektron Limited.
Summary of the Liquidity Ratio Comparisons
Ratio PEL Industry
Current 1.32 1.26
Acid-Test 0.82 0.88
> Strong current ratrionand weak acid test ration
indicates a potential problemin inventories account.
> Note that PEL has a relatively high level of inventories.
FINANCIAL ANALYSIS
Pak Elektron Limited.
Summary of the Liquidity Trend Comparisons
> The current ration for PEL has been declining & slowly rising
at the same time acid test ratio first declining and slowing rising.
> The current ration for Industry has been declining & slowly rising
at the same time acid test ratio first declining and slowing rising.
> This indicates inventories are a problem for PEL
FINANCIAL ANALYSIS
Pak Elektron Limited.
Summary of the Profitability Ratio Comparisons
Ratio PEL Industry
Gross Profit Margin 22.8% 16.9%
Net Profit Margin 1.8% 2.8%
Return on Investment 1.5% 3.5%
Return on Equity 6.8% 13.7%
> PEL profitability ratios have ALL been falling since 2007.
Each except Gross Profit Margin below the industry average
for the past three years.
> This indicates that COGS and administrative costs may
both be too high and a potential problem for PEL.
> Note, this result is consistent with the low interest
coverage ratio.
FINANCIAL ANALYSIS
Pak Elektron Limited.
Summary of the Financial Leverage Ratio Comparisons
Ratio PEL Industry
Debt to Equity 2.07 2.29
Debt to Assets 0.44 0.58
Total Capitalization 1.09 1.77
> PEL debt utilization and assets supports to debt relative
to industry is low.
> PEL long term debts also less than industry.
> That shows PEL debts utilization possition is very low
as compare to industry.
FINANCIAL ANALYSIS
Pak Elektron Limited.
Summary of the Financial Leverage Trend Comparisons
> PEL debt utilization tred stuck down as compare to
industry and than slowly rise.
> PEL assets support to debt financing is slowly down but
much down as compare to industry.
> PEL long term debt utilization trend also down.
FINANCIAL ANALYSIS
Pak Elektron Limited.
SUMMARY OF RATIO ANALYSIS
1. Inventories are too hihg.
2. A burden of financial charges.
3. May be paying off creditors too soon.4. Selling , general and administrative costs may be too high.
5. Less adminstrion performance.
6. Very poor profitability rates.
FINANCIAL ANALYSIS
Pak Elektron Limited.
Strategies/ObjectivesBy Muhammad Umar Farooqi Roll # 145
Pak Elektron Limited.
Pak Elektron Limited.
Financial GoalsTarget of reducing financial cost from 13%
Strategic GoalsIncrease profitability and sales turnoverIncreasing the product line
Defined Goals at PEL
Pak Elektron Limited.
Strategic PlansCapture 10% more market share within next 2 years.To become the leading manufacturer of electrical goods in
Pakistan.
Operational Plans Introduce a wide range of Products.To achieve the desired targets with cost cutting
techniques.Efficient utilization of resources to maximize output.
Plan at PEL
Pak Elektron Limited.
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.
Effective Planning in Dynamic Environments 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.
Contemporary Issues in Planning at PEL
Pak Elektron Limited.
Objective
Strategic:
Increase our ExportIncrease in production plant capacityRetain local market share.Lower production cost, not effecting the quality.Change in internal design.Superior on time deliverySuperior customer services.
Pak Elektron Limited.
Objective
Financial:
Lower factory overheads.Minimize liquidated damages on late delivery.Maximize profits.
Pak Elektron Limited.
Recommendations
1. They should retire their expensive loans.2.They should carefully study their competitors.3.As mentioned earlier company’s liquidity position is dismal. So they need to pay off their short term loans.4.Their operating cost is very high so they should control their operating expenses.5.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.6.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.7. 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
Pak Elektron Limited.
Distribution Transformer Plant
Pak Elektron Limited.
Pak Elektron Limited.
Pak Elektron Limited.
Question and Answer
Pak Elektron Limited.
• www.pel.com.pk• www.wikipedia.com• www.slideshare.com• https://www.google.com.pk
References
top related