This document presents a case study of Sonaoverseas Corporation, a food products company. It discusses how demand affects pay packages in industries. Sonaoverseas manufactures various food products and exports them. It employs 8 workers and 2 consultants. Due to rising input costs and dollar appreciation, salaries increased between 2009-2013. For example, an assistant manager's pay rose from Rs. 19,500 to Rs. 33,000. The case study examines how changes in demand and costs impacted compensation at the company.

1. INDUSTRY PAY PACKAGES : A
CASE STUDY OF LAW OF
DEMAND
Group Members:-
Dharti Shah (46)
Dhrumil Shah (47)
Kavisha Shah (48)
Param Shah (49)
Shairavi Shah (50)
ManagerialEconomics

2. CONTENTS
 Demand and Law of Demand
 How Demand Affects Pay Packages
 Average Pay packages in the market
 Case Study on Sonaoverseas Corporation
 Products
 Manpower
 Pay Packages
 Perks and Perquisites
 Change in Salary of the Employees
 Why there is a change in the salaries?
 Bibliography

3. DEMAND & LAW OF DEMAND
 Demand means desire backed by willingness and
ability to pay a price for a specific good or service.
 A microeconomic law that states that, all other
factors being equal, as the price of a good or
service increases, consumer demand for the good
or service will decrease and vice versa.

4. ASSUMPTIONS OF DEMAND
 While expressing the law of demand, the
assumption is that other factors of demand, except
the price of a good, are unchanged. If they don't
remain constant, the inverse relation may not hold
well. This law operates when the price of the good
changes and all other non-price factors do not
change.
 The main assumptions are:
1.Number of consumers
2.Taste and preferences
3.Income of consumer
4.Future expectation of price
5.Price of related goods

5. HOW DEMAND AFFECTS PAY PACKAGES
 If there is a higher supply and lower demand then
the salaries will be lower. If there is a higher
demand than supply then the salaries will go up.
Salaries are based around the needs of the
product, the more people want it the higher the
salaries will be.

6. CASE STUDY ON SONAOVERSEAS
CORPORATION
 Sonaoverseas corporation is a partnership firm
trading in food products and processed food. It was
established in 1977.
 Company aims at providing food products under 6
different brands. The company is manufacturing all
its products in 5 different manufacturing units which
are ISO and HASSAP certified.
 All the recipes are proprietary of the company.
 Exports in branded packing to various countries like
Canada, USA, UK, Australia.

7. PRODUCTS
The company deals in various products as below:
1. Pickle paste and chutneys
2. Spices- whole, grounded and compounded
3. Snacks and savories
4. Biscuits and baked products
5. Fruit juices and mango pulp

8. MANPOWER
 Sona Overseas Corporation is a trading company
and has 8 workers and 2 consultants.
 Workers comprise of peons, receptionists, skilled
labour, publicists, assistant manager, exports
manager and food specialist.
 In these companies, as food is a seasonal process,
contract workers are in demand. For example: in
mango season, April-may more than 100 contract
workers are required.
 The company hires custom and excise consultants.
It also takes the service of logistics and forwarders.

9. AVERAGE PAY PACKAGES IN THE FOOD
INDUSTRY
 Top Level Management - Rs 40000 – 50000 p.m
 Middle Level Management – Rs. 20000 – 30000 p.m
 Bottom Level Management – Rs. 3000 - 15000 p.m

10. PAY PACKAGES
 Salaries drawn by the managerial skills range
between Rs.35000 – 50000 (approx.)
 Salaries drawn by the administrative and office staff
range between Rs. 8000 – 15000 (approx.)
 Consultants are given remuneration on container
basis.
 There is a increase in the salary depending on the
company turnover.

11. PERKS AND PERQUISITES
 Allowances are given to the employees on their
needs.
 Allowances like medical allowance , conveyance
allowance and children education allowance.
 The top level management has the benefit of ECGC
policy
 The employees are given the benefits of LIC
insurance.

12. CHANGE IN SALARIES OF THE EMPLOYEES
Level of Employee 2009 (in rs.) 2013 (in rs.)
Assistant Manager 19500 33000
Officer Supervisor 7300 15000
Food Specialist 15500 27800
Skilled Labour 3100 11300
Unskilled Labour 1500 8000

13. WHY CHANGE IN SALARIES?
 The prices of raw materials and procurement of raw
materials, packing material and cost of forwarding
went high. The pay and other charges also shooted
up but the company has survived just due to 2
facts:
1. Rise in selling prices
2. Rise in value of US Dollar
 The company deals in US Dollars only and books
the rates. Hence the company has managed to
survive so far.

14. BIBLIOGRAPHY
 Wikipedia.org
 Investopedia.com
 Payscale.com
 Slideshare.com