2. Group Members
Muhammad Umair Shafi 14-EE(E&T)-022
Muzammil Zahoor 14-EE(E&T)-026
Muhammad Ahmad Kamal 14-EE(E&T)-045
Turab Haider Naqvi 13-EE(E&T)-047
Pak Elektron Limited(PEL)
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4. Contents
Introduction
Vision
Mission statement
Appliance Division
Power Division
Major Department of PEL
Management Activities
Work Flow And Market Competition
Marketing Strategy
Pel’s Life Cycle
Pak Elektron Limited(PEL)
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5. Continue
Porter Five Process Model
Business Process Analysis
SWOT Analysis
PEST Analysis
Achievements
New Knowledge Learned
Recommendations
Conclusion
references
Pak Elektron Limited(PEL)
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6. Introduction
• A pioneer electrical goods manufacture in Pakistan
• Established in 1956 with collaboration of M/S AEG of Germany
• saigol group of companies took over the company in 1978
• Net profit 17billian
• Company Is doing business in two division(7000 employee)
• Major share of business Is from power division but increasing
investment in appliances division also.6
Pak Elektron Limited(PEL)
7. Vision
To excel in providing engineering goods and services trough
continuous improvements.
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Pak Elektron Limited(PEL)
8. Mission Statement
To provide quality products and services to complete
satisfaction of our customers and maximize returns for all
stakeholder through optimal use of resources .
To focus on personal developments of or human resources to
meet future challenges
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Pak Elektron Limited(PEL)
9. PEL divisions
PEL Group has two divisions:
1. Appliances division
2. Power division
Pak Elektron Limited(PEL)
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10. Appliance Division
Appliances division has the following products
Refrigerators
Air conditions
Microwave oven
Washing machines
Generators
Water dispensers
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Pak Elektron Limited(PEL)
11. Power Division
Power transformer
Distribution transformer
Drytype transformer
Energy meter
Switchgear
Transformer services
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Pak Elektron Limited(PEL)
12. Major Department of PEL
Marketing ad
Corporate sales department
Customer services department
Distribution and credit control department
Human resources department
Finance department
Procurement
Information technology
Production
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Pak Elektron Limited(PEL)
14. Work Flow And Market
Competition
PEL
29%
Siemens
15%
Elmetic
10%
Transfopo
wer
21%
Others
25%
MARKETE COMPETITION
RetailersManufacturer
Consumers
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Pak Elektron Limited(PEL)
15. Marketing Strategy
segment the market according income level and
geographically
Target market of middle class consumers and consumers
from sub-urban or rural areas.
Position itself as high quality brand in les price
Does mass marketing to attract customer
Uses push strategy mostly in promotion
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Pak Elektron Limited(PEL)
17. Porter Five Process Model
High rivalry
amongst industry
rivals
Low
bargaining
power of
suppliers
Low threats of
new entrants
High
bargaining
power of
buyers
Low threats of
Substitutes
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Pak Elektron Limited(PEL)
20. SWOT Analysis
1.Strengths
Strong brand image
Strong dealer network
Monopoly in power market
Number 2 in appliance market in Pakistan
Contract with government of Punjab
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Pak Elektron Limited(PEL)
21. Continue
2. weaknesses
Financial problem
Low satisfaction level of employees
Lack of advertisement
System variations
Lack of products range
Inappropriate working of HR department
Lees utilization of resources
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Pak Elektron Limited(PEL)
22. Continue
3. Opportunities
Exploration of market in Pakistan
Rising population
Increase in product range
Export opportunity
Increase in production capacity
Increasing investment in power sector
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Pak Elektron Limited(PEL)
23. Continue
4. Threats
Strong competition
Chinese products
Decrease in Pakistani rupee value
Decreasing growth rate in Pakistan
Instability of government
Tax department
Black economy in Pakistan
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Pak Elektron Limited(PEL)
24. PEST Analysis
1. POLITICAL ENVIRONMENT
Pakistan is one of the most vulnerable countries in the
world
Very few incentives to manufacturer by the government.
The government also increased the minimum wage rate.
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Pak Elektron Limited(PEL)
25. Continue
2. Economic Environment
Economy is facing financial crisis.
Strong black economy in Pakistan.
Unemployment rate has increased from 5.6% to 7.4%.
A negative 3.3% growth rate in manufacturing.
PCI has increased from $1042 to $106.
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Pak Elektron Limited(PEL)
26. Continue
3. Social Environment
In Pakistan air conditioners are used by upper and middle class.
People are more price conscious now a days due to financial crisis.
Customers have started considering split air conditioners as a status
symbol.
More demand of split AC due energy saving.
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Pak Elektron Limited(PEL)
27. Continue
4. Technological Environment
Technology is rapidly changing.
Companies are in competition to introduce latest technology
in its products.
The use of CFC gasses has abolished in refrigerant products.
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Pak Elektron Limited(PEL)
28. Achievements
First super brand of Pakistan in home appliances.
PEL awarded health & environment national excellence award-
2008
PEL wins best environmental reporting card
PEL awarded 6th annual environment excellence award-2009.
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Pak Elektron Limited(PEL)
29. New Knowledge Learned
Patience is very important in deal.
How to work individually as well as in groups under relaxed
and stressful environment .
Ling,, as anger can lose your customer.
To increase your sales and stay un competition with top
brands it I necessary to keep your dealers happy by giving
them incentives.
Working of production plant of PEL products by visiting the
production site.
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Pak Elektron Limited(PEL)
30. Recommendations
Adopt a true decentralized organization setup which gives all
employee to take part in decision making.
The company should have a strong marketing information
system to make proper forecasts.
The company should announce two holidays in week.
Make sure proper function of HR department.
More allocate budget to its marketing department
More focus on the pull strategy in its promotion mix.
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Pak Elektron Limited(PEL)
31. Continue
Shorten its cash conversion cycle.
Should also focus on direct selling of it product to its
customers.
Should constantly add technology in its products and
system.
Should speed up its delivery process by establishing expand
its stores in areas of high demand.
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Pak Elektron Limited(PEL)
32. Conclusion
PEL has great strengths and opportunity.
Should take risk and go to other markets.
Management philosophy I the hurdle in the progress of the
company.
Take advantage of today media power to capture market.
Future of PEL is very bright as it is grabbing opportunities
and has the potential to compete with challenges.
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Pak Elektron Limited(PEL)