Internal and External Analysis of Pak Electron Ltd

Internal and External Analysis of Pak Electron LtdPak electron ltd is the pi adepter manufacture of electrical goods. It was exhibit in 1956 in technical col forceation with M/S AEG of Germany. In October 1978 the group was bought by Saigal convocation of Industries. Since its inception, the caller-up has always been contribution towards the advancements and development of the engineer sector in Pakistan by producing hundreds of engineers, versatile workers and technicians through its apprent sparklership schemes and training program.The increases manufactured by pixel shake up always been of luxuriously standard and the look up pixel is synonymous with QUALITY all over Pakistan. Since its inception, the familiarity has been working for the advancement and development of engineering know-how in Pakistan. The company has produced hundreds of engineers, skilled workers and technicians through its apprenticeship schemes training programs. pel has been continuously adding saucy products to its range. As a result, pixel has registered a signifi great dealt increase in its sales volume, during the last ten years. pixel PROFILEPak Elektron mode direct (picture element) is the pioneer manufacturer of electrical goods in Pakistan. Itwas established in 1956 in technical collaboration with M/s AEG of Germany. In October1978, the company was bought by the Saigol Group of Companies. Since its inception,the company has always been contributing towards the advancement and development ofthe engineering sector in Pakistan by introducing a range of forest home appliances andby producing hundreds of engineers, skilled workers and technicians through itsapprenticeship schemes and training programmers.The company comprises of two divisionsAppliances DivisionPower DivisionAppliances DivisionPELs appliance division is the flag carrier of the Saigol group. This division of PEL consists of nursing home appliance manufacturing.PEL Air ConditionersPEL window- image be aring conditioners were introduced in 1981 in technical collaboration with General Corporation of Japan. Ever since their launch, PEL personal line of credit conditioners digest a leading position in the market. PEL air conditioners cooling performance has been tested and approved by Copeland and ITS USA and today PEL holds approximately45% of air conditioners market sh are.PEL RefrigeratorsThe manufacturing of refrigerators started in 1986-87 in technical collaboration with M/s IAR-SILTAL of Italy. Like the air conditioner, PELs refrigerators are in any case in great demand. Today, PEL Crystal has 30% market share. Its cooling performance is tested and approved by Danfoss, Germany and its manufacturing facility is ISO 9002 aware by SGS Switzerland.PEL Deep FreezersPEL block indicateed freezers were introduced in 1987 in technical collaboration with M/s Ariston of Italy. Due to their durability and high quality, PEL deep freezers are the preferred choice of companies alike Lev er Brothers.POWER DIVISIONPEL Power Division manufactures energy meters, transformers, switchgears, Kiosks,compact stations, shunt capacitor banks etc. All these electrical goods are assembled to a poorer place strict quality support and in accordance with international standards.PEL is one of the major electrical equipment suppliers to Water and Power DevelopmentAuthority (WAPDA) and Karachi galvanic Supply Corporation (KESC), which are thelargest power companies in Pakistan.Over the years, PEL electrical equipment has had been used in numerous power projectsof national importance indoors Pakistan. PEL has the privilege of getting its equipmentapproved and certified from well-reputed international consultants such asPreece, Cardew and Rider, EnglandHarza Engineering society, USASnam Progeti, ItalySociete Dumezm, FranceMiner Miner International Inc. USAEnsa, FranceIn spite of stiff competition from emerging local and multinational brands, PEL Groups appliances and electrical e quipments have remained in the spotlight due to constant innovation. Strategic partnerships with Copeland, Danfoss, Samsung and others have enabled the PEL Group to incorporate new technologies into existing product ranges, thus giving the Pakistani market access to innovative, affordable and quality products.TRANSFORMERPEL has spacious experience in design and manufacturing of standard and special purpose transformers up to 33kV and up to 6000kVA ratings.PEL make oil immersed transformers with natural cooling are commensurate for both indoor and outdoor installations. These are manufactured according to BSS-171, IEC-76 or VDE-0532 and tropical zed to meet adverse environmental conditions. All our transformers are offered with tabular tank, having a conservator and breather. However, hermetically sealed transformers are also manufactured up to 1000kVA ratings.PEL transformers are available for various applications dissemination transformers (pole mounted or pad mounted design)Auto transformersFurnace transformersWelding transformersChokes for furnace transformersAny other special requirementPELs transformers have been successfully type tested for Impulse voltage and pathetic circuit tests at KEMA, (Holland), HVSC Lab, Rawat (Pakistan), NIP (Pakistan) and UET (Pakistan).ENERGY METERSingle-Phase Energy MetersPEL manufactures Electro-mechanical Energy Meters under license from ABB-USA. The quality of PEL meters has been certified by KEMA Laboratories (Holland) and conforms to IEC 521, SGS Yarsley, and U.K., has certified PEL Energy Meter plant for ISO 9002.PEL type MC8 is a direct connection single-phase meter. The design and constructional features include overload compensation and temperature compensation, thus providing maintenance-free routine over a long period and accurate measurement of electrical energy. The frame is sturdy in construction and the covers are available in unbreakable polycarbonate plastic material.Poly-Phase Energy MetersPEL type TBL i s a direct connection poly-phase meter having amend load performance and precision accuracy over a wide load range. All meter parts are corrosion protected for long-term reliability. It has a magnetic bearing system that is self-cleaning, non-aging and tamper resistant. This ensures nearly frictionless operation of the rotor while withstanding abuse from surges and magnetic tampering. The meter is available with one-piece high impact polycarbonate cover. The terminal cover is extended type that completely shrouds the service cable.History of RefrigeratorIn 1748 Dr.William Cullen did introductory experiment in artificial refrigeration.In the early 1800s, Michael Faraday discovered the liquefying ammonia gas which causes cooling.IN 1804, Oliver Evans, and American design the first refrigeration machine.In 1834, Jacob Perkins, an American invented the refrigerator in London.In 1844, an American physician, Oliver Evinces built a refrigerator to make ice to cool the air.In 1874, Raoul Picked of Switzerland, invented a a compressor system using sulphur dioxide instead of ammonia.In 1876, German engineer, Carl Von Linden made the process of liquefying gas, basic refrigerator technology.In 1915 Alfred Mellows starts to build first self container refrigerator for home use.In 1920 there were few 200 different refrigerators in the market.In 1922 Baltzar Von Platen and Carl Munters introduce dousing process refrigerator.Refrigerator from the late 1800s until 1929 used the toxic gases, ammonia and methyl chloride and Sulphur dioxide as refrigerant.In 1931 the first air cooled refrigerator launched by Electrolux.In 1947 GE launched two door refrigerators freezer combination.In 1955 80% of American homes now have refrigerators.Throughout the 1960s to 1970s house hold refrigerators were improved to better suit consumers.According to the history channel, today refrigerators are more energy efficientWith the advancement of technology from this era to current era, now, ther e is mobile modify in the styles and quality.Timeline of Air Conditioning EventsHere is a timeline of historical facts or so the development of the air-conditioning industry you may find interesting and help you revalue the impact this important industry has on our lives.1882 Thanks to Thomas Edison, the first electric power plant opens in New York, making it possible for the first time to have an inexpensive source of energy for residential and commercial buildings.1889 Central station refrigeration is used in large cities to preserve foods and documents.1902 Willis letter carrier builds the first air conditioner to combat humidity wrong a printing company. Controlling the humidity in printing companies and textile mills was the start of managing the inside environments.1906 Willis Carrier patents his invention calling it an Apparatus for Treating Air.1906 Stuart W. Cramer coins the term Air Conditioning.1913 The first international exposition devoted exclusively to ref rigeration is held in Chicago.1917 The first record theater to use refrigeration is the New Empire Theatre in Montgomery, Alabama. In that same year, the Central Park Theater in Chicago is built to incorporate the new technology air conditioning.1928 The Chamber of the House of Representatives is air conditioned.1929 The Senate is air conditioned.1930 The White House, the Executive Office Building, and the plane section of Commerce are air-conditioned.1942 The Potomac galvanic Power company (PEPCO) becomes the nations first summer peaking utility.1946 After World War II, the demand for room air-conditioners begins to increase. Thirty thousand room air-conditioners were produced that year.1947 Air conditioning becomes a bargain issue when textile workers in North Carolina strike because of stressful heat and humidity in the workplace.1950 A major study shows that families living in air conditioned homes sleep longer in summer, enjoy their food more, and have more leisure time.1953 Room air conditioner sales exceed one million building blocks with demand still exceeding supply.1953The air conditioning and refrigeration institute is formed from two associations the Refrigeration Equipment Manufacturers Association and the Air-Conditioning and Refrigerating Machinery Association.1955 Mass merchandise of frozen dinners begins ads promote TV dinners.1957 The first rotary compressor was introduced, permitting units to be smaller, quieter, weigh less, and more efficient than the reciprocating type.1969 Neil Armstrong and Buzz Aldrin walk on the moon in spaces suits with feeling support and cooling systems.1977 New technology allows heat pumps to operate at lower outdoor temperatures while heating on the reversed refrigeration cycle.1987 The join Nations Montreal Protocol for protection of the earths ozone layer is signed. The Protocol establishes international cooperation on the phase-out of stratospheric ozone depleting substances, including t he chlorofluorocarbon (CFC) refrigerants used in some refrigeration and air conditioning equipment.1990 ARI, in company with the U.S. Department of Energy, initiates the Materials Compatibility Lubricants Research (MCLR) program, which helps manufacturers to 21 accelerate away from CFC refrigerants.1992 The R-22 Alternative Refrigeration Evaluation Program (AREP) begins a four- year program to investigate alternatives to R-502 and HCFC-22.1995 chlorofluorocarbon (CFC) production in the unit of measuremented States ends December 31.1997 North American Technician Excellence (NATE) formed to promote excellence in technicians who install and service air-conditioning and refrigeration equipment. The NATE-certified logotype is synonymous with The Best.1998Research for the 21st centaury a multi-year, million-dollar research program for air-conditioning and refrigeration equipment begins. The objective is to decrease building energy usage while improving indoor air quality.1998 Shi pments of unitary air conditioners and heat pumps set a record of more than 6.2 million Units.1998 After receiving five annual awards from the U.S envoi mental protection place for contributions to environmental protection, ARI was awarded a Best of the Best award for continued environmental concern.Organizational DepartmentsFinance departmentMarketing department sales department barter departmentConsumer marketing departmentCredit insure departmentCustomer service departmentHuman resource management departmentDistributions department timberland control departmentDepartment workingFinance DepartmentFinance department furnish money for the working of the cheek. pixel companys department borrows loan in general from national bank and settle terms and conditioned of the interest and time period of pictureing the load with it. when the sale is made the company firstly return the loan with interest.Human Resource DepartmentHuman resource department of the Pel Company is very much conscious of hiring the employees for the company. The standards he set for hiring the new poople.HRM department of the company primarily makes the orthogonal recruitment .this is usually done through news paper web sites extra.HRM department also set salaries, packages and TA, DA allowances.Marketing DepartmentMarketing 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 tern launches the products according to the needs of the customers. Marketing department is responsible for making strong advertisement for the products.Sales DepartmentSales department is responsible for making sales of the product.This department generally takes orders from the market, gives information to the credit control department. Area credit control department gives information to the head office. Head office discuss situation with the finance department and so at last finance department gives authority to land credit control department to settle term and conditions with dealers.Customer service center departmentThis department is very much important for the company because its makes the good will of the company. It provide services to the customers who have their clams and makes the customer loyal. It also gives the feed back to the head office to provide the required spare parts.Consumer Marketing DepartmentConsumer 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.Trading DepartmentThis department is touch on for importing products. This department imports the required products according to the demand of the customer such as break out unit. This department is controlled by its head, which works instantaneously under the head office. This department sends terms and condition of trade to the head office and finance department for the financing. carrefourion DepartmentProduction department is involved only producing the products. This department purchases raw material from the suppliers. Then pass the raw material from various dyes machines, toughieling machines etc from the assembly line according to the required shapes of the products.Distribution departmentThis department distributes the final products from the production department to the dealers and then ultimately to the consumers. This department is only responsible for distributing products according to the requirement and demand of the sectors.Managerial Functions prepRefrigeratorPlanning is very much important function of the management.PEL company makes the planning regarding refrigerator by observing the market. How much a company can sales in a particular segments there any chance of growth is also in the planning of the company refrigerator.Split UnitThe company planning regarding split unit firstly i s the observation ofthe market. Then after observation how much to import the split units. Finance andtrading department also give suggestion for planning regarding split unit .Then set theirplans according to the requirement.OrganizingRefrigeratorThe organizing regarding refrigerator how to make availability of refrigerator assured. Taking in the depend the policy regarding refrigerator of the company how much to produce and when to produce etcAlmost all the department are involved in organizing and also how much borderline to give to the dealers.Split UnitWhile organizing the company takes into account that the last year sales and how much to sale in a particular area. in the first place quality control, finance department and trading department are involved in organizing for how much to import, when to import,where to import etcLeadingReferenceHead office mainly leads all departments regarding refrigerator .Allthe sub ordinate department officers lead the related department an d employees and loyalto the head office for their working. Their is check and balance situation for every(prenominal)department.Split UnitHead office mainly leads all the related department of the split units. Trading department is mainly the leader in split unit case for importing it and direct re presumable to the head office. For leading it also give its requirement to its head office for finance and for the quality control of the product.ControllingRefrigeratorControlling is the main functions after making the pervious steps. Managers of the each department control its own department working and are liable to the managing director. There is check and balance situation. In controlling, monthly and annual basis analysis are made. How much sale is made and for the betterment of the product research and development department then do its job.Split UnitIn controlling of the split units, trading department mainly control the import of the splits units. it checks the step of the unit s and quality control department checks the quality of the split units before launching it in the market.Strategic Management Model environmental ScanningEnvironmental examine is the monitoring, evaluating and discriminating of information from the external and internal environment to keep people within the corporation. The company scans the environment in the following wayGeneral ForcesIt includes semi semipolitical Legal ForcesPEL Company is very much conscious about the political and legal environment of the country. The company changes its labor wages which is registered whenever a govt. changes the labor laws.Technological ForcesPEL Company tries to adopt the future technology for using in the product. They always keep in view the technology for change magnitude the quality of the product for their customers. On the basis of modern technology, company is the market leader regarding the appliances.Economic ForcesEconomic forces means change in disposable Income, flections in the market, inflation, change in rate of interest etcCompany always keep in mind the economic conditions of the country and sets its prices accordingly.Social Cultural ForcesIt includes environmental concerns, work manners quality attitudes and also work force diversity etcPEL Company keeps in view the social culture changes of the country and sets its target accordingly.Task EnvironmentIt IncludesCustomersPEL Company customers include various government organization such as wapda and Karachi power company regarding power divisions.PEL Company has also an internal and external customers.Internal customers are those who are the employees of the company which dont makes big affect on the sales. External customers are those which are the outsides the company such as general pubic except employees.SuppliersPEL Company has its suppliers regarding its appliance division are Abdullah and Heartz, Star enterprises, Pals codes system. Etcand have its suppliers regarding split unit from china .CompetitorsPEL Company has its competitors like Dawlance, Waves, LG, Haier etc. PEL Company makes close analysis of its competitors to understand its strategies and to overcome its deficiencies.Public Pressure GroupsThere is no public pressure group which affect the working of the company because PEL Company makes product by viewing all its aspects which dont affect the societal environment of the economy.Internal EnvironmentStructureCompany has very domineering structure the information flows from top to low bottom and from bottom to top mean mechanistic style have rigid chain of command.CultureThe company has strong culture. Employees work in teams and have set great expectation and values for the incoming employees.ResourcesIt includesAssetsHeavy Machinery, Skill full Employees etcSkillsLabour skills, employee skill etcCompetences chop-chop responsible to competitorsKnowledgeHalf and annually based training. system FormulationMissionObjectiveCompany has its objective regarding refrigerator to be number 1 in the market in the coming three years. Company also set the objective to make the split units in the factory in future. dodgingCompany has a comprehensive master plan to achieve its mission and objectives. Company is trying to stabilize its market share regarding its refrigerator and split unit and also want its growth in the future.PoliciesCompany has its policy to maintain the quality of its products at lower cost and provides the consistent value satisfaction to the customer.Strategy ImplementationStrategy implementation is the process in which strategy and policy are put into the action through the development of program, budgets and procedures.ProgramProgram is the narration of the activity of the steps needed to accomplish a single use Plan.PEL Company has a program to make split units in its own factory.BudgetsA budget is a statement of the corporation program in term of money. In Planning and controlling list the detail cost of each program. Co mpany set a budget for making split unit in its own company and its also for having advertising.ProceduresSequential steps to complete program cognize as procedure. Companys program for making split units includes procedures .How much to purchase from supplier at which cost.Evaluation ControlIt is the process in which cooperates activity and performance results are monitored so that actual performance can b compared with the desired performance.PEL Company makes the evaluation by acquiring the information at all level from managers. And then they take the step for controlling the situation if it is non matching with the desired performance.Business AnalysisSWOT AnalysisSWOT stands for strength and weakness of an organization in the light of opportunities and threats outside the organization.StrengthRefrigeratorCompany has its strength in refrigerator.Customer loyaltyTrade and experienced staffUsage of vinyl radical coating materialCompressor quality (DAN FOSS Germany)Splits Units Company has its Strength in Split Units.Low cost from othersBetter coolingLow power consumption failingRefrigeratorCompany has its weakness in refrigerator.No uses of compressor drain tryNo use of drain triesSplits UnitsCompany has its weakness in Split UnitCooling problemOpportunityRefrigeratorCompany has the opportunityCan increase it sales due to loyaltyCan import due to its nameSplits UnitsCompanies have the opportunityTo make split unitsControl pricesCan increase its market shareThreatsRefrigeratorCompanies have the opportunityCompetitors can produce similar productsNew foreign companiesReduction of pricesPEST ANAYLSISpoliticalPolitical or legal forces means law and order situation in the country. Countrys policies for the trading companies. Political and legal situation regarding PEL Company is stated asRefrigeratorRegistered LaboursIncrease wages when govt. changes Labour policiesNo political affectsSplits UnitsNo pressure from political partiesEconomicalMean economic condit ion of the country such as change in dispose bale income, fluctuation in market, inflation rate etcCompany sets the prices according to the economic situation of Pakistan.RefrigeratorMiddle and upper classGenerally in inflation situation buying power decreasesReduction of prices lower of qualitySplits UnitsCost of product is main thingSocialRefrigeratorEmployees Work in Shifts.No Women in Work Force.Employees are well settled according to the cultureSplit UnitSocially no affectTechnologicalRefrigerator engineering science Affects The Working OF A Company.Company Adopts Modern TechnologyReceives Feedback.Split UnitUse of modern Of Technology.Quality Checking.POTERs 5 ModelBargaining Power of SupplierBargaining power of PEL Companys suppliers is comparatively low due to the large number of supplier such as Abdullah and hearts, Pals Codes system etcBargaining Power of buyerPEL Company have high bargaining power as compare to suppliers due to presence of many suppliers.Threat Of New En trantThere is always a threat of new entrant. PEL Company is facing a threat from foreign a local companies.Existing firmsPEL Competitors like Dawlance, Waves and LG can reduce its appliances products prices.Threat Of Substitute ProductDawlance, Waves, LG etccan produce substitute products at low rates which is threat for the company.BCG MatrixRefrigeratorRefrigerator is fixed in star box because it has high share and market growth. Refrigerator has 45% of the market share and also increasing its market growth.Split UnitSplit unit is also placed in star box due to high market share and market growth. Split unit has 30%of the market share and continuously increasing market growth.Marketing ResearchPicturesMarketing MIXPRODUCTPRICEPLACEPROMOTIONProductProduct is a thing that satisfies customer demands. Pel Company is very much conscious to make the products which satisfy the customer needs.Company makes the productAccording to the needs of the customerWhat kind of size and model they wantWhat kind of features and functions they wantWhat kind of packaging they wantPricePrice is very much important because it attracts the customer in first look. PEL Company is very much conscious about price.Company sets the prices of the products byAnalyzing the market situationActual cost of the productMarketing expenses of the product winnings margin of the companyComparison to other home appliancesSetting deal with dealersPlacePlace plays a very important role for any companys product. If the product is not rightly placed, company will suffer from loss.Company places its productAccording to the requirement of customer and marketIn more populated area of the cityAgainst competitors productsMore convenient to the customersPromotionOnce company makes the product, it needs publicity for the awareness of the customers. Unless a company will not arrange for promotion a products cant succeed.PEL Company promotes its product throughBill BoardsInternetNews paperBrushersTelevisionISO D etailThere are some requirements that the PEL Company fulfill to get the ISO certificate.International Standard PracticesTotal Quality ManagementGood Management practiceKey ForcemilitantTeamworkState Of The Art ProductionCommitment For QualityEfficiency Monitoring ProcessZero DefectGroup ProfileIn 1948, The Saigols Migrated From CalcuttaInitiated Their Business In Lyallpur(Later Named Faisalabad)Under The Banner Of Kohinoor Industries Ltd.Kohinoor Textile Mills.Pak Elektron Ltd.Kohinoor Power Company Ltd.Kohinoor Energy Ltd.Kohinoor Motor Works Ltd.Saigol Computer Pvt. Ltd.Saritow Spinning Mills The Azam Textile Mills.Completely conditional relation exportationImportsRefrigeratorIn refrigerator there is Usually No Import because the PEL Company manufactures it own refrigerator.Some Time PEL Company Import Spare Parts on the Requirement of need.Split UnitPEL Company Import split unit From China.It completely import the splitunit because they do not manufacture the split unit.Expor tIn split unit there is no export because PEL Company totally import the split unit. prospective Plans ProspectsThere is only one future plan and that isThey want to manufacture the split unit in own company.Suggestions RecommendationsAfter the visit of the PEL Company and check the complete management functions we suggested to the PEL Company to do1. More aggressive advertisement2. To manufacture the split units in their own company