2. Submitted
TO
The University Of Lahore

3. Presented By

4. NAME
Auto Mobile Industry
PRODUCT

5. RUN
E
C

6. Competitive

8. Vision
.
Our vision is to be the
country's best company
for all our customers,
shareholders, employees
and the society.
Our vision is to offer the
best product and services
to our customers. To
always exceed customer
expectations resulting in
customer delight.

9. Mission
• Our mission is to delight our
customers, employees and
shareholders relentlessly delivering
the best product and services.
• Our mission is to provide high quality
products that combine value for
money and performance while
establishing a successful relationship
with customer and supplier.
• Our mission is to consistently try to
meet or exceed customer
expectations on pricing, services and
choice.

10. In Pakistan almost everyone wants to have a car but
because of financial problems they could not afford
it, if someone buys it then they face a lot of
problems during its use like high petrol prices, non
availability of CNG. On the other hand many types of
cars in Pakistan are the big cause of pollution
specially the cars on CNG put a lot of pollution in the
air.
As I mention in my vision that I select this
business because I want to lunch economical and
environmental friendly car (which is affordable and
reduce the pollution as well).
Background

11. Under the provisions of the Companies Ordinance,
1984 a company is a body corporate with separate
legal entity and a perpetual succession and a
company may be formed by persons associating for
any lawful purpose by subscribing their names to
the Memorandum of Association and complying with
other requirements for registration of a company
under the provisions of the Ordinance.
Law in Pakistan

12. Machinery
S.No Item Detail Quantity Unit Price
($)
Total Price
($)
1 Lathe Machine 5 10,000 50,000
2 Forge Machine 2 120,000 240,000
3 Press Machine 3 100,000 300,000
4 Welder Plant 10 10,000 100,000
5 Grinder Machine 2 120,000 240,000
6 Boring Machine 4 22,000 88,000
7 Print Shop 3 24,000 72,000
8 Assembling machine 5 28000 140,000

13. 1:http://www.alibaba.com/product-detail/Used-machine-tools-of-all-
varieties_163596381.html
2:http://www.alibaba.com/product-detail/forging-press-machine-used-for-
auto_1494068203.html
3:http://www.alibaba.com/product-detail/Y81F-2000-hydraulic-scrap-car-
press_1625026324.html
4:http://www.alibaba.com/product-detail/Q35Y-Series-universal-us-shearing-
machine_642164632.html
5:http://www.alibaba.com/product-detail/High-Speed-Reciprocating-Precision-Grinder-
grinding_139638650.html
6:http://www.alibaba.com/product-detail/2014-Newly-better-quality-core-
used_1685762468.html
7:http://www.alibaba.com/product-detail/RD456II-Japanese-Used-Four-Color-
Offset_1303216540.html
8:http://www.alibaba.com/product-detail/H-beam-Automation-assembly-
machine_558216118.html?s=p

14. Corporate Strategy:
• Achieving profitable and
sustainable sales
operations
•Product and value chain
enhancement
•Strong local manufacturing
profitability
•Implementing workplace
reform
Strategy

15. H/R Strategy:
•Health Facilities to
employees
•Training and development
program
•Send the right candidate for
next round

16. Marketing Strategy:
•Create & capture new
demand
•Serving several distinct
market

17. Operational Strategy:
•Minimize the cost
•Maximize the shareholder
wealth
•Provision of better quality
•Availability of product
almost everywhere

18. PESTAL Analysis

19. POLITICAL FACTORS:
• Aimed at promoting an integrated
growth of the Pakistan's automotive
industry.
• Instability
• Assist development of vehicles which
work by alternate energy sources
• Income Tax:
Law concerning taxation
of income in Pakistan is stated in the
Income Tax Ordinance, 2001 (the
Ordinance).The Ordinance is a Central
statute and is, therefore, applicable to
the whole of Pakistan .Under section 4
of the Ordinance, income tax is
imposed for each tax year at specified
rates on every person who has taxable
income for the year.

20. Economic Factor:
• Lack of transportation
infrastructure
• Wide Financing
• Mature Market
• Interest Rate (10%)
• Inflation Rate (8.04%)
• Exchange Rate (1UAD=99.65)

21. Social Factor:
• upward migration in income levels.
• Small cars.
• Growth in urbanization.
• Population size (186,703,573) & growth rate is (1.94%)
• Seasonal change in life style
• Age Distribution: 0-14 years: 34% (male
33,774,720/female 31,967,787)
• 15-24 years: 21.6% (male 21,560,699/female 20,223,691)
• 25-54 years: 35.1% (male 35,272,193/female 32,587,417)
55-64 years: 5% (male 4,767,260/female 4,832,047)
• 65 years and over: 4.3% (male 3,877,418/female
4,375,636) (2013 est.)

22. Technological Factor:
•With the entry of global
companies into the
Pakistan market,
advanced technologies,
both in product and
production processes have
developed.
•Evolution of alternate
fuels.

23. Environmental Factor:
• Pakistan have different weather
and climate in a years. Change in
temperature can impact on cars
engine difficult to start when
weather is cold and engine easy
to overheat when weather is hot.
Therefore I am going to develop
specific engine in country due to
weather and climate problem.
• Water pollution from raw sewage,
industrial wastes, and agricultural
runoff, limited natural fresh
water resources, a majority of
the population does not have
access to potable water,
deforestation, soil erosion.

24. Legal Factor:
• Due to employment laws in Pakistan, employee working
hours and the wages. Working hours in Pak standard
are 8 hours per day and minimum wages are RS. 10,000
to 12,000 per month. Due to this situation, company
could be affected because of high wages in a company.
• Pakistan's government has proposed all the company
workplace must be as safe as is reasonably practical.
They cover issues such as training, reporting accidents
and the appropriate of safety equipment to make sure
employee are in safety situation.
• Employment Law: If you are working 8 hours/day, you
are eligible for one-day holiday in a week. It can be
either day in a week and can also be the day when
your establishment is closed. But you need to
remember that if you are made to work on your
holiday; you can’t be made to work consecutively for
10 days without being given a compensatory holiday for
full one day. Your weekly holidays are paid and your
employer can’t deduct money for these holidays.

25. Portal Fire Force Analysis

26. Threat of new Entrants:
Pakistan's incredible
growth forecasts,
infrastructure progress
(especially new and better
roads), and ever-expanding
financing options to rural
residents, the market is
attractive. As such, we
expect the threat of new
entrants to be high.

27. The bargaining
power of buyers:
Buyers in Pakistan
have a wide variety of
choice. There are more
than 20 foreign
manufacturers selling in
Pakistan. Of course
bargaining power of
customer will be high.

28. The threat of
substitute products:
Pakistan is famous
for its two-wheelers
(bikes) and three
wheelers. These are
very real and obvious
threats to auto
manufacturers.

29. The amount of
bargaining power
suppliers:
It is likely that the
suppliers to the
manufacturers have
considerable bargaining
power. They are not held
influence by one single
manufacturer as they can
market their products to
any of the others in
Pakistan.

30. The amount of rivalry
among competitors:
Is high. The industry is
not yet in its shake-out
phase and is still
struggling to find the up-
and-coming stars and
possibly topple the
leaders.

32. Employer contract: (upper layer)
• work to fulfill organization task.
• Insert all of their abilities.
• Only have organizational interest.
• Work to maximize the profit margin of organization.
• Managing people and building working community.
• Influence the operating environment and managing
change.
• Improving and monitoring efficiency and quality.
• Achieving results and steering the organization.
• Work within the rules and regulation

33. Employer Behavior: (Down Layer)
• After 3 months when actual attitude,
communication pattern are studied then found that
some serious conflicts.
• Required production are not found.
• Not reached at targeted sale.
• Profit margin is very low.
• Lack of Efficiency.
• Lack of quality.

34. As the owner of organization I want to found all of causes of the
failure. After some inspection and via making comparison of upper
and bottom layers organization I came to know that the employer
do not work as the contracted (Conflict in bottom and upper
layer), found the reasons that some of them want the failure of
upper management to get dominating position in org. They
externally show full concentration but internally have something
different.
Decision:
After watch out all the matter I decide to fire all of those
employers who involves to mislead the organization and appoint
some other efficient and honest employers.

36. Strategic Apex:
BOD of my company decide to adopt best
material, labor and also decided to use electronic media
for advertisement. Because this is the start of business
that's way do not think to earn to much profit,
concentration should be on best quality products on
reasonable prices, aware the public about your product
via best way of advertisement, public dealing should be
best. This is the sensitive stage of business that's way don
not try to take any sort of risky step which cause bad
perception in the mind of people.

37. Middle Line:
Middle line work as communication medium
b/w strategic apex and operating core.
The strategic staff communicate to middle line managers
that in production department best quality material should
be use with all of labor expertise, sale department should
be enough efficient to timely availability of product in all
referred markets.
If Sale department face any sort of problem
to approach any specific market the problem are
communicate to upper management via middle line.

38. Operational Core:
Processing stage of all of the planning
made by upper stage. Need to produce the car
with best use of material and expertise, adopt the
best way for distribution as communication made
by middle line.
If any problem faced by any of
department relate to upper staff then it is the
duty of related manager or supervisor to share
with middle line to approach upper management.

39. Support Staff:
I also want to hair some of staff as support
staff to make my organization self contained in
some of field like legal counsel, industrial relation,
cafeteria etc.

40. Technostructure:
I also hair some members
who's duty to aware the org with latest
technology, also specify the job of
middle line and operating core. They
analyze the budget and also give expert
opinion.

41. SPAN OF CONTROL

42. Tall or Flat Business:
Now my start of business
that's way I decided to adopt flat business
(Business B) because my business is not to
wide and I also want to get aware from day
to day matters with no interval.

43. SWOT ANALYSIS

44. Strengths
 Low cast and cheap labor.
 Rise in working and middle
class income
 Increasing demand for
European quality
 Expert skill in producing small
cars
 Large pool of engineers
Weaknesses
 Low quality as compare to
another automotive countries
 Low labor productivity
 High interest rate and
overhead level
 Production cost are generally
higher as compare to other
Asian states, such as China
 Local demand is still towards
low cost vehicles due to low
income level
Opportunities
 Growing population in country
 Focus from the government in
improving the road
infrastructure
 Better car technology is
demanded
 Rising rural demand
 The car is a status symbol
Threats
 Less skilled labor
 Lack of technologies for Pakistani
company
 Increasing in import tariff and
technology cost
 Increased congestion in the urban
areas
 External changes (government,
politics, taxes, etc.)

45. • BCG matrix has two dimensions
market share and market growth.The
basic idea behind it is if a product has
biggest market share, or if the
products market grows faster. It is
better of the company.
• The four segment of BCG matrix: -
STAR, high growth and high market
Share.
CASH COW, low growth and high
Market share
DOG, low growth and low market share
QUESTION MARK, high growth
And low market share.

46. STAR:
No investment or very low
Low expenses
High sale volume
Product self advertise
QUESTION MARK:
High investment
Advertisement
What is the product
Generation is revenue is starts

47. CASH COW:
No marketing activity
Maturity stage of product
Reshape the product or shut down
DOG:
Distribution of product in every market
Advertisement is not here
Market growth is low
Expenses high
Revenue low

48. 4Ps

49. Product:
A new model car with verity of colors.
Price:
Price is varying in order to vehicle color and grade. The price
of all cars fall near between RS: 0.8 million to 1 million.
Promotion:
My high concentration on electronic media for promotion
but I also decide to adopt printed and social media.
Place:
Firstly I decide to launch the car in big cities (Islamabad,
Karachi, Lahore, Peshawar, Quetta).

50. Risk:
I decided to launch 50
cars each of every color
in particular cities. It is a
risk for me to launch
such a huge quantity but
it is necessary to create
good impression in minds
and timely availability to
interested people.
RISK MANAGEMENT

51. Management
identify:
Heavy delivery may cause the
difference b/w demand and supply which my
results decease in price.
Assess:
Low demand may harm my product
badly that's way need to take some steps to
get aware from all of the benefits of my
product.
Treat/Avoid:
Now I aware from the risk and its
reactions. After taking views from advisors I
decided to treat (launch the decided
quantity) the risk.
Review:
I have a lot of other threats which
force me to review my decision like
terrorism, downward movement in income
level, brand oriented society etc but I do not
like to review because risk is a one step
further towards success.

52. Elastic or inelastic demand:
ELASTICITY

53. Benefits or Threats:
Firms can be at a disadvantage if they do not know if their
demand is elastic or inelastic. If demand is inelastic, a firm should
raise prices. If it is elastic, the firm should lower prices. If the firm
does not know which thing to do, it can lose money. Thus, a poor
understanding of price elasticity of demand (and not the concept
itself) can be a disadvantage to companies.
Assessment:
I assess that the demand of cars is inelastic because car is a
luxury item and the people who can buy car conscious about prices but
not too much.

54. Performance Management & Working CapitalRatio
Name Target Reason
Current ratio
2:1
 Generally 2:1 is ideal for most of businesses, In my business
2:1 is also prefect because the stock (inventory) of my
company is not easily convertible into cash that’s way I
enough resources to meet my obligations in time which is
possible with 2:1 current ratio.
Quick ratio 1:1  If I consider 2:1 current ratio prefect for me the because of
the reason (inventory of my org is not easily convertible in to
cash )then 1:1 quick ratio is prefect for me because I think in
current assets of my org except inventory have enough
potential to get rid from debts in time.
Receivable ratio 12 Times  12 times; debt payment period of 30 days is considered ideal.
 Very less creditors’ turnover ratio or a high debt payment
period may indicate the firm’s inability in meeting its
obligation in time.
payable ratio 10 times  The average collection period represents the average number
of days for which a firm has to wait before its receivables are
converted into cash, 10 times is prefect for me.
Leverage ratio(Debt+
Equity) 40-50%
 To low or to high leverage are both not beneficial for org
 For manufacturing org 40 to 50% are prefect.