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Ali Raza
L1F18BBAM8006

Table of Contents
OVERVIEW OF ELECTRONICS INDUSTRY..............................................................................5
OVERVIEW OF PEL COMPANY................................................................................................... 7
History............................................................................................................................................... 7
VISION OF PEL............................................................................................................................... 8
MISSION OF PEL............................................................................................................................. 8
SLOGAN........................................................................................................................................... 8
INTRODUCTION OF PEL................................................................................................................ 9
OBJECTIVES OF PEL...................................................................................................................... 9
COMPANY POLICY........................................................................................................................ 10
COMPETITIORS............................................................................................................................. 10
Direct Competitors.......................................................................................................................... 10
Indirect Competitors........................................................................................................................ 10
MAJOR COMPETITORS............................................................................................................... 10
BUSINESS VOLUME....................................................................................................................... 11
PRODUCT LINE OF PEL............................................................................................................... 11
Appliances Division........................................................................................................................ 11
Power Division................................................................................................................................ 12
STRUCTURE OF PEL..................................................................................................................... 12
BOARD OF DIRECTORS PROFILE............................................................................................. 12
HIERARECHY OF PEL.................................................................................................................. 15
NUMBER OF TOTAL EMPLOYEES............................................................................................ 16
MAIN OFFICE.................................................................................................................................. 16
MAJOR DEPARTMENTS OF PEL................................................................................................ 16
Production Departmen:.................................................................................................................... 16
Human Resource Department.......................................................................................................... 17
Marketing Department..................................................................................................................... 17
Finance Department......................................................................................................................... 17
Sales Department............................................................................................................................. 17
Customer Service Department (CSD).............................................................................................. 17

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Consumer Marketing Department (CMD)....................................................................................... 18
Trading Department......................................................................................................................... 18
Distribution Departmen:.................................................................................................................. 18
COMMENTS ON ORGANIZATIONAL STRUCTUE.................................................................18
HUMAN RESOUCE MANAGEMENT.......................................................................................... 19
RECRUITMENT & SELECTION.................................................................................................. 19
RECRUITMENT PROCESS........................................................................................................... 21
INTERNAL SOURCES.................................................................................................................. 21
Job Posting........................................................................................................................... 22
Employee Referral Programs............................................................................................... 22
EXTERNAL SOURCES................................................................................................................. 22
Advertising........................................................................................................................... 22
Giving Advertisement in News Papers.................................................................................23
Giving Advertisement on Internet........................................................................................ 23
SELECTION PROCESS................................................................................................................. 23
Test.............................................................................................................................................. 24
Interview...................................................................................................................................... 24
Medical Test................................................................................................................................ 24
Back Ground Reference............................................................................................................... 24
TRAINING AND DEVELOPMENT............................................................................................... 25
TRAINING OF NEW EMPLOYEES:............................................................................................ 26
Induction Training....................................................................................................................... 26
Orientation Program.................................................................................................................... 26
TRAINING OF EXISTING EMPLOYEES.................................................................................... 27
On-the Job Training.................................................................................................................... 27
Off the job Training.................................................................................................................... 27
PERFORMANCE MANAGEMENT & APPRAISAL SYSTEM.................................................30
THE APPRAISAL PROCESS........................................................................................................ 30
PERFORMANCE APPRAISAL IN PEL........................................................................................ 31
PERFORMANCE PLANNING...................................................................................................... 31
WHO CARRIED OUT THE APPRAISAL PROCESS?...............................................................32
HUMAN RESOURCE PLANNING................................................................................................ 32

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GOALS AND PLANS OF ORGANIZATION...............................................................................33
Planning Period............................................................................................................................ 34
JOB ANALYSIS................................................................................................................................ 34
JOB DESCRIPTION FORM........................................................................................................... 34
JOB SPECIFICATION.................................................................................................................... 34
ORIENTATION................................................................................................................................ 35
3 Days Orientation Program............................................................................................................ 35
Procedure Of Orientation................................................................................................................. 36
ORIENTING AND TRAINING OF EMPLOYEES......................................................................36
Who Supervises the Training Programs?......................................................................................... 37
COMPENSATION POLICY............................................................................................................ 37
COMPENSATION AND BENEFITS.............................................................................................. 37
MARKETING FUNCTIONS........................................................................................................... 39
4P’s of PEL........................................................................................................................................ 39
Product............................................................................................................................................. 40
Price................................................................................................................................................. 40
Place................................................................................................................................................ 40
Promotion........................................................................................................................................ 41
ANALYSIS OF MICRO ENVIORNMENT...................................................................................41
Customers........................................................................................................................................ 41
Suppliers.......................................................................................................................................... 42
Competitors..................................................................................................................................... 42
Public Pressure Groups.................................................................................................................... 42
Structure.......................................................................................................................................... 42
Culture............................................................................................................................................. 42
ANALYSIS OF MACRO ENVIORNMENT.................................................................................. 43
Political Environment...................................................................................................................... 43
Economical Environment................................................................................................................ 44
Social Environment......................................................................................................................... 44
Technological Environment............................................................................................................. 45
Legal Environment.......................................................................................................................... 45
COMPETITOR ANALYSIS............................................................................................................ 45

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DIRECT COMPETITORS.............................................................................................................. 45
INDIRECT COMPETITORS.......................................................................................................... 46
SEGMENTATION, TARGETING & POSITIONING (STP).......................................................47
MARKET SEGMENTATION......................................................................................................... 47
Geographic Segmentation................................................................................................................ 47
Demographic Segmentation............................................................................................................. 48
Psychographic Segmentation........................................................................................................... 48
Behavioral Segmentation................................................................................................................. 48
POSITIONING.................................................................................................................................. 48
TARGETING..................................................................................................................................... 49
DEPARTMENTAL HIERARCHY................................................................................................. 50
HEIRARCHY OF MARKETING DEPARTMENT.......................................................................51
Number of Employees................................................................................................................. 51
HAIRARCHY OF HUMAN RESOURCE MANAGEMENT DEPARTMENT............................52
Number of Employees................................................................................................................. 52
HAIRARCHY OF FINANCE DEPARTMENT.............................................................................53
Number of Employees................................................................................................................. 53
SWOT ANALYSIS............................................................................................................................ 54
STRENGHTS OF PEL..................................................................................................................... 54
WEAKNESSES OF PEL.................................................................................................................. 57
OPPERTUNITIES FOR PEL.......................................................................................................... 58
THREATS FOR PEL........................................................................................................................ 58
FINANCIAL ANALYSIS................................................................................................................. 60
VERTICAL ANALYSIS................................................................................................................... 60
HORIZONTAL ANALYSIS............................................................................................................ 63
COMPETITIVE ANALYSIS WITH OTHER ORGANIZATION...............................................74
FUTURE OUTLOOK....................................................................................................................... 75
RECOMENDATONS........................................................................................................................ 76
CONCLUSION.................................................................................................................................. 77
REFRENCES AND SOURCES....................................................................................................... 77
ANNEXES.......................................................................................................................................... 78

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OVERVIEW OF ELECTRONICS INDUSTRY

Electronics, which is world’s largest industrial sector and most lucrative consumer market with
an annual turnover of US$ 1.5 trillion, needs special attention. Pakistan still lacks appropriate
technology and expertise to establish a viable industrial base in electronics sector, as only 3
percent is contributed by the sector. Pakistan’s consumer electronics market is expected to grow
by an annualized average of about 13.3% to $3.3 billion by 2016, according to a newly released
report by the London-based research firm Business Monitor International.

Key competitors of PEL are Dawlance, Waves, LG, and Haier etc. The Dawlance is market
leader in the refrigerator and PEL is still on second number. But in window room air conditioner
(WRAC) the PEL is market leader. PEL provides the quality products and services to the
complete satisfaction of our customers and maximize the returns of the all the stake holders
through optimal use of resources which enable it to compete at its best like increase the product
range, export opportunity, increase in production capacity etc.

Barriers to entry are high manufacturing cost, high advertisement cost high cost of raw material,
requires huge capital to get entry in the industry. Some of the technological trends that affect the
industry are System Variations, Product Range and Distribution network, introduction of the
seasonal scheme to boast sales and electronic media and advertisement media to get edge over
competitors. These are the main modes of marketing: Advertising: Include running ads on TV
or radio stations, in magazines and newspapers, using outdoor media such as billboards or
vehicles or placing banners or pay-per-click displays on websites.

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Personal Selling: When you sell face-to-face, you use personal selling. This includes phone
calls, sales visits and in-store sales staff. Sales Promotion: A promotion is a temporary activity
aimed at boosting sales and revenue. These include discounts, sales, buy-one-get-one-free deals
etc. Direct Marketing: Direct Marketing occurs when you give customers an opportunity to
respond using information in the ad, rather than heading to a store. This might include a TV ad
that tells customers to “Call now!” and provides a phone number.

The Government of Pakistan through its notification dated 16th October 2017 has imposed
Regulatory Duty on hundreds of items including electronics equipment and appliances. Pakistan
Electronics Manufacturer’s Association (PEMA), in a statement issued moments ago, straight
away rejected the new duties. The statement said that the Federal Government has taken this
decision in haste, unilaterally and without consultation with any of the stake holders.

This statement said that electronics and Home Appliances products such as Refrigerators, Air
conditioners and Televisions are not classified as “luxury” items globally. Association members
said that their factories import parts to manufacture electronics goods in Pakistan. These factories
generate huge amounts of taxes for the government and provide large scale employment to the
people of our country. So Imposing Regulatory Duty on components, parts and materials is in
absolute negation to the industrial policy of our country, as such measures shall make local
production unviable.”

The demographic trends which affect the electronics industry are the Product Design
Outsourcing, Virtual Reality in Electronic Manufacturing, Robotics and Automation, Smart
household appliances powered by IoT Technology, Growing Demand for Smart TVs. In an
economic cycles management must be able to recognize what part of life cycle is product is at
any given time. The completive environment and marketing strategies that should be used
ordinarily depends on the particular life cycle stage.

Some of the key financial measures which are most frequently used by investors interested in the
electronics sector include Gross Margin, Operating Margin; Earnings Value to Earnings before
Interest, Taxes, Depreciation and Amortization, the Current Ratio and Return on Equity.

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Ali Raza
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OVERVIEW OF PEL COMPANY

VISION OF PEL:

 To Excel in providing engineering goods and services through continuous

improvement.

MISSION OF PEL:

a) To provide quality products and services to the complete satisfaction of our customers
and maximize returns for all stake holders through optimal use of resources.
b) To focus on personal development of our employees to meet future challenges
c) To promote good governance, corporate values, and safe working environment with
strong sense of social responsibility.

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INTRODUCTION OF PEL
Pak Elektron Ltd. is one of the oldest and amongst the leading Home Appliances
Manufacturer and Distributor in Pakistan.
The company has an annual turnover of Rs 13.9 billion.
PEL is the pioneer manufacturer of electrical goods in Pakistan.
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.
The company floated its shares to the general public and was listed on Karachi Stock
Exchange (KSE) and Lahore Stock Exchange (LSE).
A pioneer electrical goods manufacturer in Pakistan
Company is doing business in two divisions
In 1980, Appliances Division was established, then 1981, it started the production of
Power Division
ISO CERTIFICATION PEL was 16th Company in Pakistan, which got ISO 9002
Certification in 1997.

PRODUCT LINE OF PEL

Appliances Division:

 Air Conditioners
 Deep Freezers
 Refrigerator
 Microwave Oven
 Washing Machine Generator
 Water Dispenser

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Marketing Department:

Marketing department is the back bone of any firm. Marketing department generally analyze the
needs and wants of the customer. Then this department tells about the customer needs to the
company which in turn launches the products according to then needs of the customers.
Marketing department is responsible for making strong advertisement for the products.

Consumer Marketing Department (CMD):

Consumer marketing department gives packages to the person who has low income to attract
them to purchase their products. They have their own area offices. This department works under
credits control departments.

MARKETING FUNCTIONS

4P’s of PEL

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Product:

Product is a thing that satisfies customer demands. PEL Company is very much conscious to
make the products which satisfy the customer needs.

PEL makes the product:

 According to the needs of the customer.

 What kind of size and model they want.
 What kind of features and functions they want.
 What kind of packaging they want.

Price:

Price is very much important because it attracts the customer in first look. PEL company is very
much conscious about price.

PEL Company sets the prices of the products by:

 Analyzing the market situation.

 Actual cost of the product.
 Marketing expenses of the product.
 Profit margin of the company.
 Comparison to other home appliances.

Place:

Place plays a very important role for any company’s product. If the product is not rightly placed,
company will suffer from loss.

PEL Company places its product:

 According to the requirement of customer and market.

 In more populated area of the city.
 Against competitors products.
 More convenient to the customers.

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Promotion:

Once company makes the product, it needs promotion for the awareness of the customers. Unless
a company will not arrange for promotion a products can’t succeed.PEL Company promotes its
product through:

 Bill boards
 Internet
 News paper
 Brushers
 Television

SEGMENTATION, TARGETING & POSITIONING (STP)

MARKET
SEGMENTATION

GEOGRAPHIC DEMOGRAPHIC

PSYCHOGRAPHIC BEHAVIORAL

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MARKET SEGMENTATION
Segment marketing offers several benefits over mass marketing. The company can more easily
select the best distribution and communication channels and it will also have a clear picture of its
competitors. Market segmentation refers to the different areas of the population that companies
can aim their products towards. The market segment that PEL has chosen to aim is the quality
conscious people.

Geographic Segmentation:

PEL is doing mass market which is not limited to one county but all over the world. The main
target of PEL is Pakistani market. In Pakistan, PEL is available at every city because it’s very
famous and good product of market.

Demographic Segmentation:

PEL divide its market on the basis of following characteristics of population.

 Age group:
Earlier PEL used to segments its market among people age ranges from 35-----45 years.
But now PEL focus between the age group ranges from 25----35 years.
 Gender group:
For the segmentation, the company is recently focusing on young graduate girls and the
latest ad of PEL reveals the fact in which famous singer Hadiqa is representing young
college girl.

Psychographic Segmentation:

 Income group:
 PEL is offering its several products to different income groups of society
 In case of Generators, company focuses on elite class.
 In case of refrigerators, split air conditioners, washing machines, deep freezer.
Televisions Company focus on middle class.

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 In case of Microwave oven, the company focuses on elite and middle class.

Behavioral Segmentation:

We provide a quality product for our customers. It is purely base on local demands and needs,
and we sure that our product will be appreciated by that people who are quality conscious.

POSITIONING
PEL positions itself as an electronic company offering durable products of best performance at
economical rates.

PEL has different positioning levels for different products.

 In case of refrigerators the company is challenger of DAWLANCE.

 In case of air conditioners company is challenger for WAVES and MITSUBISHI.
 In case of televisions company is challenger of LG and some other companies.

PEL occupies the strong position in the market because, it has very good market share of 38%.
PEL is the Market Challenger.

TARGETING

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PEL’s target markets are customers from lower middle, middle and upper and middle income
level.

PEL also targets rural and sub urban areas markets.

PEL targets these markets because it has differential advantages of economical and durable
products over its competitors; where it can generate the greatest customer value and sustain it
over time.

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FUTURE OUTLOOK

The economy is expected to perform well in the next year however it is exposed to certain
challenges like current account deficit, lower exports, increased competition in the international
market and lack of technological advancement as compared to competing nations. It is still
hoped that national economy will continue to grow and rising prosperity will bring expanding
opportunities for the Engineering Industry and for your Company.

 The company wants to be No.1 in the coming five years.

 Moreover it was a sales oriented company previously and now it is going towards the
Marketing concept.
 In addition to that company wants to set plants for local assembling of the key products
which are becoming popular day by day in the market such as Split Unit.
 The company may target another segment of lower income by producing cheaper split
units. Their current target market is upper class and middle class.
 The company will continue to focus on cost effectiveness, quality standards and best after
sales services to our valued customers.

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RECOMENDATONS
After looking into different weaknesses and future threats, we recommend following steps to
PAK Elektron in order to cope with future problems.

 Pak Elektron Limited should adopt a true decentralized organization setup which gives all
employees to take part in decision making for the company. It will boost their motivation
and loyalty for the company.
 The company should add more features to their products. People are attracted towards
products with unique features and something that would make the customers feel that
they have got their money’s worth.
 To gain more competitive advantage over its co-market players, PEL should give more
focus on the Pull Strategy in its promotion mix especially for appliances.
 PEL should develop its image as an employee oriented company rather to an employer
oriented company.
 The company should also focus on direct selling of its products to its customers, although
Consumer Marketing Department is doing so but at a very meager level.
 The company should advertise throughout the year so people should remember them and
will be more brand loyal and new customers will be attracted. They should use all the
medium of advertising to be more successful in attracting customers.
 The company should constantly add technology in its products and systems according to
changes in the international development that will give it a competitive advantage in the
marketplace.
 The company should develop systems for identifying opportunities, ranking them and
choose the best ones.

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CONCLUSION
In Pakistan the brand image of Pak Elektron Limited is excellent in the minds of its customers.
The company has good strengths and so it can make a rapid progress in local as well as foreign
markets. In my views the management philosophy is the main hurdle in progress of the company.
Now the company’s focus is only profit and employer’s oriented which cause employees' low
motivation. No doubt PEL is making excellent products, but unfortunately PEL is not realizing
creative advertising is also important part of their Marketing success.

The strategic alliance of PEL with LG will helpful for the company to expand its technical and
production capacity and will also expand the target market. I see the future of PEL very bright as
it is finding new opportunities and the company has the potential to compete with any challenge
in the market as it is in the market since an era of above 50 years.

REFRENCES AND SOURCES

i. www.google.com
ii. www.pel.com/Annualreport2017
iii. www.pel.com/Annualreport2016
iv. www.pel.com/Annualreport2015
v. www.pel.com/Annualreport2014
vi. www.scribd.com/document/65000355/HRM-project-on-PEL
vii. www.dailytimes.com.pk /383622
viii. www.dawn.com/news/1327205
ix. www.ukessays.com/pak electron limited/
x. http://dartways.com/sectors/16
xi. www.worldbank.com/report-on-pel/
xii. https://www.dawn.com/news/1174131
xiii. http://www.pacra.com.pk/uploads/doc_report/HouseholdAppliances_Nov15.pdf
xiv. https://tribune.com.pk/story/179856/home-appliance-industry-continues-to-grow/
xv. https://dailytimes.com.pk/66815/pakistani-households-waste-25-of-electric-supply/
xvi. www.dailytimes.com.pk /383622

Prof .Usman Mumtaz Information Technology