INTERNSHIP

REPORT
Markiting Department
Shamim and Company (Pvt) Limited Multan

For Peroid: July to Augest 2018

Submitted By:

Faizan Faiz

Reg No. BBA-MN140479 (2014-18)

Course: BBA (Hons)

University of Education Multan Campus

Department of Business Administration
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 PREFACE
Assignments, Term reports and Internship programs are the vital teaching techniques of University of
Education Multan Campus B.B.A (hons) program. The aim of such activities is to develop a practical
evaluation approach in students along with their studies.

As an integral part of B.B.A (hons) studies, every student has to undergo an internship program in a reputed
institution to observe daily life business practices and problems in business life.

In order to fulfill this purpose department assigned me internship of Shamim & Company (Pvt) Ltd Multan
being the private largest private Company and franchisee of Pepsi cola international.

I have tried my best to make this report comprehensive to provide information about the strategic and
functional areas of Shamim & Company (Pvt) Limited.

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 Dedication
All My Words Dedicated with Respect, Reverence Love and Affection to My Loving Parents who taught and
hold my hands on several occasions and help me to reach this stage”.

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 Acknowledgement

I pay special thanks to ALLAH Almighty who bestowed me the opportunity, courage and confidence to
obtain more knowledge to complete my internship program, which will facilitate me greatly in my intellectual
development and skills capitalization.

I would like to submit my deepest gratitude to my parents, whose prayers always supported in every
task of my life and my teachers, who really guided me to enhance my learning in Shamim & Co. (Pvt) Ltd
Multan.

To accomplish whatever, I have done in my internship, there were many people along the way who
have been responsible for guiding me, advising me, encouraging me. To them, I am deeply grateful and would
like to take this opportunity to offer my heartfelt appreciation.

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 EXECUTIVE SUMMARY

Shamim & Co. Multan is working in beverages business (PEPSI cola) under a franchise setup since 1963.
PEPSI Multan is currently having 80% market share in Multan and the share is still rising. Pepsi Multan has
not the certified ISO Company because there is no export of Pepsi drink; it is an international drink encloses
their standards.

The Pepsi-cola is the market leader in the Pakistan as well as in the Asia but Coca Cola is the market leader in
the whole world. These industries develop their own marketing policy to meet the necessities of their
respective target market. As for as the Shamim & Co. beverage in Multan is concerned, it creates its control in
its target market, which is based on Multan, Rahim Yar Kahn and the sub areas of these cities. Shamim & Co.
beverage successfully complete the obligation of its target market. Shamim & Co. beverages think important
departmentalization in their office works and therefore they set up different department to achieve their
particular tasks. There are different departments in the Shamim & Co. beverages like human resource
department, management information system department, finance department, internal and external audit
department, sales & marketing department and shipping department.

Finally, I am thankful to complete management of Shamim & Company (Pvt) Ltd Multan, particularly
Executive Mr. Junaid Shah who provide me opportunity to work with them and provide chance to learn
operation of Shamim & Company Pepsi Cola Multan.

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Table of Contents:
Acknowledgement 06
EXECUTIVE SUMMARY 07
Introduction OF PEPSI CO. International 09
PepsiCo in Pakistan 10
Vision Statement 12
Mission Statement 13
Introduction to Shamim & Co. (Pvt) Ltd Multan 14
Company Profile 15
Organizational Structure 16
MANAGEMENT OF SHAMIM AND COMPANY 18
SHAMIM & CO. OBJECTIVE 19
Departments 19
INTERNSHIP PROGRAM 21
MARKETING MIX 34
Financial Analysis 47
PESTEL FRAMEWORKS 54
SWOT ANALYSIS 58
Suggestions 60
Comments 61
Internship Offer Letter 62
Internship certificate 63
Balance Sheet 64
Income Statement 65
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Introduction to Shamim & Co. (Pvt) Ltd Multan

Shamim & company (Pvt.) Ltd. is a franchise of “Pepsi Cola International”. The company has established in
1964. Mr. “Allah Nawaz Khan Tareen” was the inventor of the company and also chairman. It is a great
pleasure of “Shamim & Company” that it was Second Beverage Company of Pakistan that time, and this time
one of celebrated Beverage Company of South Asia.

Pepsi Multan was incorporated in 1963 but it in progress its manufacture in 1967. At that time Pepsi Multan
was having only 1 production plant made by Netherlands. At the start Pepsi Multan was only manufacture 7-
Up because it was the only brand produced by Parent Company. In 1973, parent company got hold of PEPSI
so the Multan franchise started producing PEPSI and Marinda along with 7-Up.

Coke was already in service in the market at the time when Pepsi Multan well-known. At that time Coke was
market leader but with the passage of time Pepsi Multan reserved on focusing on gaining the market share.
Recently Pepsi has launched a new brand with the name of Mountain Dew. Now Pepsi Multan is working
with eight production plants capable of producing more than 200,000 crates per day. “The plant which was
installed at ht e time of establishment has now been grounded. Pepsi Multan is at present market leader with
more than 75% of market shares.

The Area allotted to Multan Franchise. The franchise area consists of the following districts.

 Multan
 Muzafar Garrah
 D.G Khan
 Bahawalpur
 Lodhran
 Bahwalnagar
 Sahiwal
 Pakpattan
 Rahim Yar Khan
 Khanewal & Vehari

Company Profile
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 Shamim & Co was established in 1967 under a
franchise agreement with 7-UP to bottle 7-Up Soft Drinks. During 1973 Shamim & Co. Pepsi Cola Multan
going ahead bottle Pepsi cola as well. This was the first Pepsi franchise in Pakistan.

Since 1967 we have run to grow rapidly and grasp an authoritative market share which has made us one of the
prime minister bottling companies in the region. Our products are manufactured under strict quality control
and conform to international quality standards set by Pepsi co. We have an all-embracing network of
Distributors and well-trained sales staff to market and distribute our products in whole of the southern Punjab,
a territory that covers almost 150,000 Sq.k.m. we provide a population of over twenty million people through
more then 22000 outlets out of which 14,000 are exclusively Pepsi cola sellers. We supply a complete
business package to our retailers including horizontal and vertical bottle coolers, point of purchase
advertising, cash credit, etc.

Shamim & Co. Pepsi Cola Multan is now enjoying above 75% market share in the franchise which is the
highest for any Pepsi Cola Franchise in the world. We were declared “Bottler of the Year” in the region for
outstanding performance. We plan to continue with our business traditions in the future.

Address

Pepsi Shamim & Company (Pvt) Ltd

Factory District jail Road Multan

Tel :( 061) 4515037

Fax :( 061) 4586644

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 Introduction OF PEPSI CO. International

Mr. Caleb Bradham is the owner of a ting drug store in of North Carolina City In January 1898, which was

the starting period of Pepsi-cola. The Drug store owner created a drink, which is call "the Bred Drink". In

1903 Bred index the name drink Pepsi. At Marco level he ongoing his own produced and build his own

organization. The trade extended and this drink achieved appreciation time. This company appears at 24

states of America with more than 250 dealers in 1909. First time Pepsi packed in 16.5 ounce packing size.

Pepsi-cola has launched its new filler in 12 ounce in 1932. New promotion struggle is started with the name

of "Refresh without Filling" in 1950 by Pepsi-cola. The chemical formula also changed which caused to

decrease its sweetness and calories. Pepsi acquired so much celebrity that it established new plants at a rate

of thirty per annum with the hard working of the Sales & Marketing Department. In 1985 the design of the

bottle has been changed after 20 years. And a new and eye-catching packaging has been presented with two

new flavors i.e., Teem & Miranda. Pepsi is accessible now in more than 160 countries of the world

including Soviet Union & China..

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 PepsiCo in Pakistan

Pepsi-cola market share is about 75% in the soft-drink market in Pakistan because it is very traditional. Pepsi-
cola International, a significant name in the cola trade is doing its business in Pakistan through franchising.
PCI has industrial following bottlers in Pakistan till now. Shamim and Co Company is the largest producer
and distributor of Pepsi Cola soft drinks in Pakistan.
These franchises are situated in:
 Karachi

 Lahore

 Multan

 Sukkher

 Gujranwala

 Faisalabad

 Peshawar

 Islamabad

 Hyderabad

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Current Product Portfolio of Pepsi Co. in Pakistan Market:

Currently PepsiCo is offering following products & brands in Pakistan market:

 Pepsi
 7Up
 Mirinda
 Mountain Dew
 Pepsi Diet
 7Up Diet
 Sting
 Slice
 Aquafina
 Lay’s
 Cheetos

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 Organizational Structure

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 MANAGEMENT OF SHAMIM AND COMPANY

MANAGING DIRECTOR (OWNER) MR. ALAMGIR KHAN TAREEN

CHIEF OPERATING OFFICER MR.AMIR HAMEED

SALES CAPABILITY MANAGER MR MIRZA JAVED

PLANT MANAGER MR ANWAR SHAHID

HUMAN RESOURCE MANAGER MR M AFZAL

MARKETING & SERVICES MANAGER MR.MUBASHER GHAYOOR

KEY ACCOUNTS MANGER MR IRFAN SHAHZAD BUTT

MIS MANAGER MR: RIZWAN MANAGER

SALES OPERATIONAL MANAGER MR: KAMRAN ZAFAR

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 SHAMIM & CO. OBJECTIVE

The key objective of the company is to make up and distribute of peak level quality, which verify to both the
national and international quality stands. The company is committing to provide maximum level of client
satisfaction.

Departments
.

 Administration Department

 Production Department

 MIS department

 SIS Department

 Finance & Accounts

 Cash Department

 Human Resource Department

 Sales & Marketing Department.

 Operations Department
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INTERNSHIP PROGRAM
FIELDS OF ACTIVITIES

Shamim and Co Bottling Company is the franchise of Pepsi Cola International. It performs all the functions
throughout its different types of department, only company receives Concentrate (basic formula) from Pepsi
cola international and all other activities are performed by the company itself.

Through my 6 week internship program, I was motivated through following departments:

 HRM Department

 Marketing & Sales department

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HRM DEPARTMENT

Recruitment Procedure:

 Main sources of potential job candidates are

 Paper Adds

 Internal Search Advertisement

 Employees Referrals (Permanent Employees of SCL)

 Manager’s Recommendations

 The candidates are selected on the basis of

 Written Test

 Interview by HR Manger

 Interview by Concerned Department Head

 Final Interview by MD/Director

Conference for worker level job where qualification and skill requirement is low, this formal
procedure is not adopted rather candidates abilities are fledged by department head and sent to factory
manager for approval. Orientation is the introduction of new into his or her job & the organization. This is for
few selected persons in Shamim and co training is generally on the job employees in all departments are
bearing by the time or with the help of seniors.

My activities

I worked with Mr. Afzal in this department. He helped me out to learn, how they select and hire new
employees. I also learnt how they are managing all departments. And I work in employee selection process
and also involve in test and interview session.
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A.
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 SALE & MARKETING
DEPARTMENT

Sale and Marketing is the significant department of any beverage company. To enhance the revenue
and income, this department should be properly planed and managed. Shamim and Co PVT has a very hard
line and painstaking sales and marketing department. Due to its efforts the company has got the first position
in 1993 throughout the Pakistan.

OBJECTIVE OF MARKETIND DEPARTMENT

 Add to brand consciousness and loyalty along with the target audience through best possible use of
resources.

 To improve the marketing share by improving visibility

 To improve the BTL planning and effecting (Budget signage quality)

 To retain market leadership

 To create improvement store branding and merchandising activities

 To Facilitate sales by truthful and comeback

Marketing Operation

 Marketing strategy

 BTL budget planning and execution

 Merchandising and staff management

 BTL Execution and planning

 Central workshop (base)
 BTL execution process
 Existing vendor setup
 Budget planning

 Marketing strategy
 Customary the strategy in which type of market come in and increase the market share.
 Use best way of promotion and awareness to customer about brands or products.
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 Make strategy to increase sales of the company

 Subsequent are the major contents of
this department

 Market Development
 Outlet
 Tactical analysis and routine planning of market strategies.
 Competition activity monitoring
 Publicity Management
 Publicity Verification

My activities

I work in marketing and sales department for one week. Here Mr. Mubashir & Mr Kashif are Our
controller, and they were very accommodating with us. It is satisfied to see that the automation in the
marketing department in respect of the guidebook work is going into the DBMS , And we deals with to
outside vendors of the company for the marketing of the company that was our major assignment in our
internship period according to our specialization

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 MARKETING MIX

The job of creating, promoting and deliver goods and services to consumers in the businesses is
called Marketing. Associations identify and outline separate group of purchasers who power to prefer or
require changeable products and marketing mixes. The customer always desires satisfaction. The
organizations can boost the worth of the customer offering in a number of ways e.g. raising compensation,
sinking costs etc. marketing mix is a set of marketing deal with that the firm uses to follow its marketing
objectives in the target market. These marketing tools are known as 4 ps of marketing. These four marketing
tools are viewed as 4c’s by the consumers.

4 P’s 4C’s

Product / Services Customer Solution

Price Customer Cost

Place Convenience

Promotions Communication

To categorize the client needs and satisfying them is the basic intention of an organization.
Shamim and Co Bottling Company provides a winning mixture of products and services to its prime
customers. PepsiCo is one of the world leading companies, which ensures complete security, and
dependability in all transactions.

PRODUCTS

Anything that can be presented to a market to accomplish want or need and a service is an act or
presentation that is essentially intangible and does not result in the ownership of anything is called product.
What type of products or services has to be offered to the target market depends on the market obligation and
also the organization’s income. The organization will offer those products and services which maximize the
profits and minimize the costs.
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 BRANDS INTRODUCED IN
PAKISTAN

 Pepsi cola
 Pepsi Diet

 7UP

 7UP free

 Mirinda

 Mountain Dew

 Sting

 Slice

PEPSI LOGOS

The Pepsi logo has changed many times over the years. Here's a sequential history of the a range of logos.

2003

2010
PEPSI MARKETING PHRASES
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1909-1939: “Delicious and Healthful”

1939-1950: “Twice As Much For A Nickel Too”

 “The Light Refreshment”
1950-1963:

1953-1961: “Be Sociable”

1961-1963: “Now It's Pepsi For Those Who Think Young”

1963-1967: “Come Alive! You're In The Pepsi Generation”

1967-1969: “Taste That Beats The Others Cold”

1969-1973 “You've Got A Lot To Live, Pepsi's Got A Lot To Give”

1973-1975: “Join The Pepsi People Feeling' Free”

1975-1978: “Have A Pepsi Day”

1978-1981: “Catch That Pepsi Spirit”

1981-1982: “Pepsi's Got Your Taste For Life!”

1983-1983: “Pepsi Now!”

1984-1991: “Pepsi, The Choice Of A New Generation”

1991-1995 "Got to Have It".

1995-1997 "Nothing Else is a Pepsi"

1997-1999 "Generation Next"

1999-2000 "Ask for More"/"The Joy of Cola".

2000-2003 “It's the Cola"/"Dare for More".

2003-2009 “Dil ha tu mango more”

2009-2010 “Hum sey hai yeh Zamana!”

2010-Onwards “Dunya hy Dil Walon Ki”

COMPLETE PRODUCT LINE OF SHAMIM & CO

Brand Packing Unit Volume

250 ML 24 bottles per case 250 ML per bottle

1000 ML 12 bottles per case 1000 ML per bottle

Pepsi 1500 ML(PET) 6 bottles per case 1500 ML per bottle

300 ML 12 bottle per case 300 ML Per bottle

500 ML 6 bottle per case 500 ML per bottle

Pepsi Diet …………….. ……………….. ……………….

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7 up 250 ML 24 bottles per case 250 ML per bottle

 6 bottles per case 1500 ML per bottle
1500 ML(PET)
12 bottle per case 1000 Ml per bottle
1000 ML

300 ML 12 bottle per case 300 ML Per bottle

500 ML 6 bottle per case 500 ML per bottle

7 up free ……………… ……………… ……………….

250 ML 24 bottles per case 250 ML per bottle

1500 ML(PET) 6 bottles per case 1500 ML per bottle

Mirinda 300 ML 12 bottle per case 300 ML Per bottle

500 ML 6 bottle per case 500 ML per bottle

1000 ML 12 bottle per case 1000 ML per bottle

250 ML 24 bottles per case 250 ML per bottle

1500 ML(PET) 6 bottles per case 1500 ML per bottle

Mountain Dew
300 ML 12 bottle per case 300 ML Per bottle

500 ML 6 bottle per case 500 ML per bottle

Sting 250 ML 24 bottle per case 250 ML per bottle

Slice 240 ML 24 bottle per case 240 ML per bottle

PRICE

It is second essential tool of marketing mix because it acting a major role in shaping the customer’s choice.
Also it is the only marketing tool that results into revenue. The customer makes a comparison between the
prices offered by other companies and PepsiCo and then chooses the most suited offer. Following is the list of prices of
different products.

PRODUCT PRICE

250ML OF EACH BRAND Rs. 20 RUPEE

1000ML OF EACH BRAD Rs. 60 RUPEE

1500ML OF EACH BRAD Rs. 80 RUPEE

500 ML OF EACH BRAND RS.45 RUPEE

250 ML STING RS.30 RUPEE

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 Shamim and Co Bottling Company normally uses on
going price strategy by seeing its major competitor Coca Cola besides this company also uses Discount price
strategy during special occasions. Like Ramzan offer.

PLACE

The location of the organization plays a vital role in making its operations profitable. If the organization
outlets are located in some near markets then it will be very easy for it to attract people. Therefore Shamim
and co has most of its outlets at places where it can reach its targets customer easily. Following are the major
areas which come under operations of Shamim and co:

 Multan
 Sahiwal
 Muzafar Garrah
 Lodhran
 Bahwalpur
 Bahawal Nagar
 Rahim Yar Khan
 Pakpattan
 D.G Khan
 Khanewal
 Vehari

The company functions through a deep-rooted network of a number of distributors. The

company has two types of delivery systems.

 Direct delivery system

 Indirect delivery system
The critical difference between the direct and the indirect delivery system is that in a direct
distribution system, the company spends its own resources while in an indirect distribution; the dealer spends
his own resources on all the factors which increases the sales volume:
Shamim and company use indirect delivery system but to some extent they use direct delivery system as like
as CSD (carbonated soft drink) store.

DIRECT DELIVERY SYSTEM

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 INDIRECT DELIVERY SYSTEM

MAIN CUSTOMERS IN MULTAN ARE:

There are at least 40 main store of Pepsi Shamim and co in Multan in few store names is mentioned here.

 Tasty Food Plus

 Dera In hotel
 Al Habib store
 Akhtar&sons
 Mahboob Bakers
 Family Mart
 E-Mart
 Mega Mall
 Mercado
 Ideal Beakers
 Al Hateem
 Fresh Life

Shamim and co identifies their target market in Multan division through following ways:

 General stores
 Cold corners
 Parks
 Traffic areas and public areas
 Retailers and distributors

PROMOTIONS

PepsiCo is convincingly additional in promotion of its products and services through classified ad and other
promotional schemes. PepsiCo pay out a large amount of its financial plan on publicity. Promotion is done
from beginning to end different mores like.
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POINT OF PURCHASE PROMOTIONS

 Promotion through the their chillers and other
resources such as refrigerators that are provided to different shops with the LOGO of PEPSI are the ways of
promotions which are included into point of purchase promotions.

PERSONALIZE MARKETING

Marketing by using different marketing intermediate like electronic and print media and using famous
celebrities as endorsers and ambassadors of PEPSI, they mostly use television ads for their promotions.

PEPSI CULTURE

PepsiCo has also creates culture among children and Next Generation is its motto. It has become the
requirement of everyone and it is only possible due to its well-built promotion.

Other Two ways that Pepsi cola is used.

 BTL (Below the Line)

 ABL (Above the Line)
In Below the line company use advertising tools such as bill board, outdoors, banners and above the line
company use electronic media, print media, radio. Shamim and company use below the line strategy. Above
the line strategy is use in upper Punjab.

COMPETITORS

Following are the competitors of Shamim & Co

 Coca cola

INCOME STATEMENT

2013 2014
000 000
Rupees Rupees
Net Revenues 6,534,934 6,508,670
Cost of goods sold 3,026,632 3,061,814
Gross profit 3,508,302 3,446,856

Selling, General and Administrative expenses 2,560,348 2,484,986

Amortization of intangible assets 9,016 10,780
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 Operating 938,938 951,090
profit
Interest expenses (89,082) (89,278)

Income before income tax 849,856 861,812

Provision for income tax 215,502 206,192
Net Income 634,354 655,620

Statement of Cash Flows

Shamim & Co.
2014 2013
000 000
Operating Activities Rupees Rupees
Net Income 634,354 655,620
Depreciation & Amortization 257,250 260,974
Stock-based Compensation expenses 29,106 29,694
Merger & Integration charges - 980
Cash payments of merger & integration charges - (2,450)
Restructuring & impairment charges 40,964 15,974
Cash payment for restructuring & charges (26,068) (13,034)
Cash payments to restructuring charges related to Tariq Glass - (2,548)
Shaikhu Pura remeasurement charges 10,290 10,878
Excess tax benefits from share based payments (11,172) (11,466)
Pension & retirement medical plan expenses 65,366 64,974
Pension & retirement plan contribution (64,190) (25,676)
Deferred Taxes (1,862) (103,684)
Accounts & notes receivables (33,614) (8,624)
Inventories (10,878) 392
Prepaid expenses 7,840 (4,998)
Account payables 113,876 98,686
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Income tax payable 36,358 8,428

Other net (26,362) (34,202)
 Net Cash provided 1,029,588 949,424
Investing Activities
Capital spending (280,182) (273,910)
Sales of property, plant & equipment 11,270 10,682
Cash payments related to transactions with Tariq Glass - (294)
Acquisition & investment in non-controlled affiliates (8,624) (10,682)
Divestitures 19,894 13,034
Short term investments
     More than three months purchase (617,890) -
     More than three months maturities 381,318 -
     Three months or less, net 11,368 5,978
Other investing, net (980) (2,058)
Net Cash used for Investing Activities (483,826) (257,250)
Financing Activities
Proceeds from Insurances of long term debt 377,790 411,110
Payments of long term debt (214,522) (381,612)
Short term borrowings:
     More than three months proceeds 4,900 2,254
     More than three months payments (980) (48,216)
     Three months or less, net (199,626) 160,132
Cash dividends paid (365,540) (336,532)
Share repurchase-common (491,176) (294,098)
Share repurchase-preferred (980) 686
Proceeds from exercise of stock options 73,990 110,054
Excess tax benefits from share based arrangements 11,172 11,466
Acquisition of non-controlling interests - (1,960)
Other financing activities (4,900) (3,234)
Net Cash used for Financing Activities (809,872) (371,322)

Effects of exchange rate changes on cash & cash equivalent (53,508) (19,208)
Net Decrease/Increase in cash & cash equivalent (317,618) 301,644
Cash & cash equivalent at the beginning of year 918,750 617,106
Cash & cash equivalent at the end of year 601,132 918,750

Balance Sheet
Shamim & Co.
2014 2013
000 000
ASSETS Rupees Rupees
Current Assets
Cash & Cash equivalent 601,132 918,750
Short term investments 254,016 29,694
Accounts & Notes Receivables 651,798 681,492
Inventories 308,014 334,082
Prepaid expenses & other assets 210,014 211,876
Total Current Assets 2,024,974 2,175,894
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Non-Current Assets
Property, Plant & Equipment 1,689,912 1,820,350
Amortization of Intangible Assets 142,002 160,524
 Goodwill 1,466,570 1,628,074
Other amortized intangible assets 1,238,622 1,411,290
Non amortized intangible assets 2,705,192 3,039,372
Investment in non-controlled affiliates 263,522 257,054
Other Assets 84,280 139,650
Total Assets 6,909,882 7,592,844

LIABILITIES AND EQUITY

Current Liabilities
Short term obligations 497,448 519,988
Accounts payable and other current liabilities 1,275,568 1,228,234
Total Current Liabilities 1,773,016 1,748,222
Long term debt obligations 2,334,458 2,384,634
Other liabilities 562,912 483,238
Deferred Income taxes 519,792 586,628
Total Liabilities 5,190,178 5,202,722
EQUITY
Capital stock 405,720 403,760
Retained earnings 4,811,016 4,549,160
Accumulated other comprehensive loss (1,045,562) (502,446)
Repurchase common stock (2,448,530) (2,058,392)
Total common share equity 1,722,644 2,392,082
Non-controlling Interest (2,940) (1,960)
Total Equity 1,719,704 2,390,122
Total Liabilities and Equity 6,909,882 7,592,844
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 Financial Analysis

LIQUIDITY RATIO’S:

These ratios are important in measuring the ability of a company to meet both its short term and long term
obligations.

WORKING CAPITAL:

Working capital is an indication of the short – run solvency of business

Working Capital = C.A – C.L.

Year 2013 2014 2015 2016 2017

CA 343179640 390387892 468465470 562158564 674590277

CL 280253635 326286103 375229018 431513371 496240376

Working Capital 62926005 64101789 93236452 130645193 178349901

CURRENT RATIOS:

This ratio measures the short-term debt-paying ability of the company

C. A
Current Ratio = C. L

Years 2013 2014 2015 2016 2017

CA 343179640 390387892 468465470 562158564 674590277

CL 280253635 326286103 375229018 431513371 496240376

Current Ratio 1.2 1.2 1.25 1.30 1.36

ACID- TEST RATIO:

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This ratio is like the current ratio but excludes current assets such as inventories and prepaid expenses that
may be difficult to quickly convert into cash.
 Quick Ratio=Quick Assets / Current Liabilities

Years 2013 2014 2015 2016 2017

CA 42218250 49449960 57856450 67692050 79876619

CL 280253635 326286103 375229018 431513371 496240376

Q Ratio 0.15064301 0.151554 0.1541897 0.15687127 0.16096356

DEBT MANAGEMENT:

This is the most common measure of the ability of a firm’s operations to provide protection to the long-term
creditor.

TIME INTEREST EARNED:

TIE = EBIT /INTEREST EXPENSE

YEAR 2013 2014 2015 2016 2017

EBIT 13130022 15544100 18432038 21643604 25539453

Interest Exp 1644312 1061878 1536003 1812483 2138730

TIE 8 15 12 11 12

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DEBT RATIO’S:

This relation measures what share of a company’s assets is add up by creditors.

DEBT RATIO: TD / TA

YEAR 2013 2014 2015 2016 2017

TD 281275235 327307703 376403858 432864437 497794102

TA 385165619 439795604 527754820 633305785 759966942

Debt
Ratio 73% 74% 71% 68% 65%

D/E RATIO:

This relation shows the degree to which debt is enclosed by shareholders’ funds. It reflects the qualified
position of the equity holders and the lenders and indicates the company’s policy on the mix of capital funds.

D/E = TD / TE

YEAR 2013 2014 2015 2016 2017

TD 281275235 327307703 376403858 432864437 497794102

CE 103890384 112487901 151350962 200441348 262172840

D/E 2.71 2.9 2.5 2.2 1.9

ASSET MANAGEMETNT:

These relations are significant in measuring the effectiveness of a company

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 DAYS SALES IN RECEIVABLE:

It shows both the typical time takes to turn the receivables into money and the period, in terms of days, of a
company's accounts receivable

Gross Re ceivables
Days sales in receivable = Net Sales / 365

YEAR 2013 2014 2015 2016 2017

A/R 16881442 15527617 20156759 23180273 26657334

Sales 849952926 885258201 1062309841 1274771809 1529726171

DSO 7 6 7 7 6

PROFITABILITY RATIO’S:

It shows how doing well a company in consideration of generating income or earnings on the Investment that
it has made in the business. If a trade is liquid and efficient it should also be Profitable. Ability to provide
sufficient financial rewards for attracts and retains financing.

RETURN ON EQUITY (ROE):

It measures the expertise of the management of the organization to generate sufficient profits for the
investment invested by the owners of a company. Normally a return of 10% would be attractive to provide
dividends to owners and have finances for future development of the company

R.O.E = N.I / C.E

YEAR 2013 2014 2015 2016 2017

NI 11485710 14482222 18102777 22628471 28285589

CE 103890384 112487901 151350962 200441348 262172840

ROE 11% 13% 12% 11% 11%

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 RETURN ON ASSET’S:

The ability to operate the Assets working in the company proficiently and successfully to earn a good return
by a ratio called Return on Assets. The relation find out the percentage of income earned per dollar of Asset
and thus is a find out of effectiveness of the company in produce profits on its Assets.

R.O.A= N.I / TA

YEAR 2013 2014 2015 2016 2017

NI 11485710 14482222 18102777 22628471 28285589

TA 385165619 439795604 527754820 633305785 759966942

ROA 3% 3.30% 3.40% 3.60% 4%

NET PROFIT MARGIN:

There is a method to determines endure struggle and unfavorable situation like going up costs, declining
prices or decrease in sales in the future by the Profit Margin ability of a company. The relation finds out the
percentage of earnings produce per dollar of sales and therefore it is calculate of effectiveness of the
organizations.

N.P.M = NI /SALE

Years 2013 2014 2015 2016 2017

NI 11485710 14482222 18102777 22628471 28285589

Sales 849952926 885258201 1062309841 1274771809 1529726171

NPM 1.35% 1.64% 1.70% 1.80% 1.85% 3

PESTEL FRAMEWORKS
  POLITICAL FACTOR

In Asia and especially in Pakistan where the political situation is not stable no Government has completed its
possession and the politics also a great influencer on the different industries of the country. Now following are
the effects on the beverages industry.

 The govt. decides that what will be the rates of sales tax
 The rates of main operating variables inputs such as the Electricity are also decided by the govt.

 ECONOMICAL FACTORS

The country like Pakistan whose economy is not strong enough is affected by so many economic variables
which are the following.

 Low literacy rate is a trouble due to which rural customers are not able to distinguish between
PEPSI and Coke and etc.
 Employment opportunities will be higher.
 Increasing demand of PEPSI requires institution of new production plants.
 Combined pricing decisions with mutual agreement between PEPSI and Coke.

 SOCIAL FACTORS

The social factors of each society and culture are different from each other so these also control the industries
as well.

 Now it has become a tendency that soft drink should be served in almost every meeting.
 Fast food reputation among teenagers has led to the increase in demand of PEPSI.
 Social interests’ program is also active at PEPSI for example PEPSI donated 1 million Rs. For
helping recent earth quake victims.
 They have been supporter different cricket events and Pakistan cricket team for almost 8 to10
years.

 TECHNOLOGICAL FACTORS
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Today is the era of Technology whether it is Information Technology or Production Technology so the PEPSI
is also affected by these. Following are some of these.
  Previously there were separate production
plants for the production of specific brand size.
 Now they have installed a new production plant which is capable of producing different brand
sizes at the same time.
 The plant has been grounded now which is putting in place at the time of project.
 The sixth production plant which is currently being installed is the latest one imported from
Germany.
 There is no institute in Pakistan providing engineering training regarding beverages production
plants so PEPSI people have to arrange onsite training for its maintenance engineers to learn
working with latest technology plants
 There is very limited automation to keep production record. Most of the record is maintained
manually but currently they are trying to shift towards fully automated production control system.

 ENVIRONMENTAL FACTORS

 They are having an ammonia plant installed within the residential area of Multan so they have to
follow environment safety laws imposed by govt.
 As they are having no solid waste but they have to make special drainage arrangements for the
disposal of water used to wash empty bottles before filling them.

 LEGAL FACTORS

 As there is no concept of profit repatriation so the govt. involvement in profit distribution is nil.
 Laws regarding working condition, working hours and child labor are also enforced by govt.
 Because of their location in residential and urban area they are not able to perform loading and
unloading of trucks in day time because trucks cant enter in urban areas in day time. So they can
only load and unload trucks between 10 PM to 6 AM.
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 SWOT ANALYSIS

STRENGTHS

 High brand image and customer loyalty

 Pepsi is currently the market leader with more than 80% of market share
 Effective and efficient management of distribution channel allows Pepsi Multan to cover a huge
geographical area.
 On site training of 4 to 6 months enables plant engineers to manage plant operations effectively so
that machine downtime is reduced to minimal.
 Pepsi provides its own transport to distributors to cover those geographical areas where competitors
are not distributing their products because of difficulties to reach there.
 Strong coordination between different departments
 Strong distribution network
 Strong sales & marketing department
 They have their own R&D department which is responsible for conducting market research
 Their plants are capable of producing round the clock.
 They offer attractive margins to the distributors, so distributors are willing to carry PEPSI brands
 They provide direct delivery on CSD department.
 They offer attractive margins to the distributors, so distributors are willing to carry PEPSI brands

WEAKNESSES

 Supply Gap stock is not provide on the time

 Poor feed back from employees
 There is bad act due to law that is cargo of trucks can acquire put only in the night as of the law allow
trucks to go through into township only in the darkness.
 The location of factory is in the housing region with no appropriate parking provision for its
automobiles.
 Communication can only take place in a formal communication path which leads to delay in decision
making.
 No involvement of lower level subordinates in decision making.
 Record keeping is mostly done manually.
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 OPPORTUNITIES

 Provide awareness to customer on time to time

 Due to high customer loyalty and brand image new product can grow consumer favorite extremely
shortly.
 The high market growth opportunity exit.
 They are planning for new production plant which will increase production capacity.
 Expanding markets through its strong advertisement
 Training of sales officer and salesman
 There is high market growth opportunity

THREATS

 There is a continuous threat from Coca Cola and other new entrants.
 Empty glass bottles can be used by other parties to sell their drinks in PEPSI bottles.
 Low graded PEPSI is also available in the market.
 Increase in competition
 Coca- Cola is on its way to get market share

SUGGESTIONS

 The access of all departments must have proper greeting to deal the guests.
 The facility of Internet must be making available for every worker in Finance and Management
department.
 One time meat (i.e. Lunch) must be for employees at no cost.
 The arrangements of canteen must be appropriate about the hygiene of food preparation.
 Accounts coordination department ought to be fair swab properly.
 The all Steps are supposed to be ensuring cleanliness in all departments. The decoration of every
department must be exit.
 HR Department task should be enhanced and its role should be enlarged to all main departments.
 The facility of Transport should be making available for workers. It works as a enthusiasm instrument
and will make sure in time existence of workers in appreciated departments.
 The culture about internship must be developed suitable and appropriate arrangements about internees
must be developed so that internees can get appropriate knowledge about approximately every section
in the firm.
 For increasing motivation of employees, give them incentive on basis of performance.
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COMMENTS
  All departments have very good working
atmosphere.
 SCL have responsible and very hard working staff.
 There is high-quality inter associations among workers. Workforce is very gracious to each other.
 The available resources are used properly by all departments.
 There is good power, to manage, organize and exchange a few words with its team, every
department’s manager has. They have well prepared their particular zone.