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Internshi

p Report
Metro
Motorcycle
Company

Table of Contents
Executive Summary............................................................................................... 4
Chapter One......................................................................................................... 5
Introduction...................................................................................................... 5
1.0 Background of study....................................................................................... 5
1.1 Purpose....................................................................................................... 5
1.2 Scope......................................................................................................... 5
1.3 Objective..................................................................................................... 5
1.4 Methodology................................................................................................ 6
1.5 Organization................................................................................................. 6
1.6 Summary..................................................................................................... 6
Chapter 2............................................................................................................ 7
Organization..................................................................................................... 7
2.0 Half page introduction.................................................................................... 7
2.1 Overall respective sector in Pakistan...................................................................7
2.2 Role of the Organization in Pakistan...................................................................7
2.3 Overall organization and functions of organization in Pakistan...................................8
2.4 Organization office in which I worked...............................................................10
2.5 Summary................................................................................................... 11
Chapter 3.......................................................................................................... 12
Organization Analysis........................................................................................ 12
3.0 Half Page Introduction..................................................................................12
3.1 Brief history of the Organization......................................................................13
3.1.1 Actual and prescribed functions..................................................................14
3.1.2 Relationship of head office to the offices......................................................14
3.1.3 No. of Departments.................................................................................15
3.1.4 Offices or field offices............................................................................. 16
3.1.5 Current staff.......................................................................................... 16
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3.2.1 Current staff of branch according to qualification and experience........................17


3.2.2 Training received by no. of people..............................................................18
3.2.3 Workload............................................................................................. 18
3.2.4 Salary Structure..................................................................................... 19
3.2.5 Promotion system...................................................................................19
3.2.6 Incentives & Motivations.........................................................................19
3.2.7 Responsibilities Performed.......................................................................20
3.2.8 Critical Analysis of the Branch..................................................................24
3.3.1 Communication System...........................................................................25
3.3.2 Morale of Staff...................................................................................... 25
3.3.3 Physical facilities................................................................................... 26
3.4 Performance............................................................................................... 26
3.6 Summary................................................................................................... 27
Chapter 4.......................................................................................................... 28
4.0 Introduction............................................................................................... 28
4.1 Policies..................................................................................................... 28
4.3 Success..................................................................................................... 32
4.4 Summary................................................................................................... 33
Chapter 5.......................................................................................................... 34
Application of Models....................................................................................... 34
5.0 Half page introduction.................................................................................. 34
5.1 SWOT Analysis.......................................................................................... 35
Strengths..................................................................................................... 36
Weaknesses................................................................................................. 37
Opportunities............................................................................................... 37
Threats....................................................................................................... 38
5.2 PEST Analysis............................................................................................ 39
Political...................................................................................................... 40
Economic factors.......................................................................................... 40
Social Factors............................................................................................... 41
Technological Factors..................................................................................... 41
Summary....................................................................................................... 41
Chapter 6....................................................................................................... 42
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Recommendations............................................................................................ 42

Master of Business Administration

Executive Summary
I joined Metro Motorbikes Company for the sake of internship of six weeks.
Internship was undertaken for the sake of learning some practical knowledge which will
be helpful in further studies and for any job.
Metro Hi-Tech (Pvt.) Ltd. was established in 1973 by Younas group of industries
and it enters in to motorbikes field in 2003. Metro Motorbikes Companys main products
are MR-70 andMR-125. Metro has second highest market share in the industry. Its main
office at Lahore and the regional office in which I worked as internee is also the only
manufacturing unit of Metro Motorbikes Company and known as Gujrat region or AJK
region.
There are almost thirteen departments overall in Metro Motorbikes Company but
not all of them working in this regional office. So for the sake of internship I start studied
the whole process of Manufacturing from purchase of raw material up to sales of finished
products and providing after sales to customers.

Master of Business Administration

Chapter One
Introduction
1.0 Background of study
In Masters of Business Administration (M.BA), doing internship is one of the
important courses and has equal markings like other courses. In internship student is
asked to join an organization for a specific time period to learn from the business
organizations practically, that how they implements those concepts which we read during
our M.BA courses? At the end of internship, student has to submit internship report of
what he/she gain from that organization to the respective supervisor.

1.1 Purpose
The basic purpose of our internship is to understand the practical implementation
of our studies, and the purpose of this report is to inform our supervisor that what we gain
from that organization in the given time.

1.2 Scope
Bookish knowledge is not the sole purpose of (M.BA) but through this internship
I have a lot of information regarding the basic concepts of my studies. This internship
help a lot to me in understanding the basic concepts of management sciences and will
help me in future because internship in this organization give me practical knowledge
rather than bookish knowledge. This internship will also help in future in getting better
job.

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1.3 Objective
Objective of this internship is to learn from the experienced personal who are
working in the field and also to learn what hurdles they may face while the
implementation of concepts/strategies in the organization and how they overcome on
them. Another objective of this internship is to have a grip on my area of specialization
which is marketing.

1.4 Methodology
A short time of six week is allotted to us to understand the whole functions of the
organization. Though it is not possible, but I manage in this way that for the first I
understand the whole organization generally, than pay my keen interest to my area of
interest/specialization. While doing internship for the completion of this report I gather
information from the supervisors of the relevant departments and also from the head of
departments.

1.5 Organization
For the sake of internship I need to select an organization to learn the proper
implementation of my studies. That organization is to be selected in which there is proper
management system. So for that purpose I Choose Metro Motorbikes Company because
this organization is working on proper management principles.

1.6 Summary
In nutshell, doing internship is one of the major activities in M.Com. Sole purpose
of doing internship is to understand the practicality of the concepts which we learn from
our courses in M.COM. Doing internship is very fruitful for us to gain practical
knowledge from experienced personals. While doing internship I study all of the
departments of the organization and study some of the departments in detail and collected

Master of Business Administration

data from the supervisors and heads of the relevant departments of that organization.
Internship is also beneficial for us in future either to do job or to do further studies.

Master of Business Administration

Chapter 2
Organization
2.0 Half page introduction
In the locality of Gujrat city there are several organizations are working to boost
up countrys economy. Fan industry of Gujrat is famous in the country. Fans from Gujrat
are also exported to several overseas countries. Many organizations in Gujrat (including
fan industry) didnt have any proper organization system and they are still working on old
ways of managing organization.
So that I choose Metro Hi-tech this organization manufactures motorbikes. The
main reason behind choosing Metro is this, that it is one of some organization in Gujrat
who have proper management system. Metro have several departments to manage their
organization like productions, human resource, sales and marketing, procurement, quality
and so on. Metro is working on international standards. Main office of Metro is located at
Lahore.

2.1 Overall respective sector in Pakistan


As the demand of motorbikes is increasing many organizations enter in this
industry. There are almost 40 firms which are producing bikes. Demand of bikes in
Pakistan is increasing day by day so there is a high need of investment in this sector. All
of the organizations related to this industry are earning reasonable profits but still there is
a need of improvement in the respective sector. Motorcycle industry in Pakistan
manufactured about 1.6 million motorbikes in the current year and industry experts
believe that this figure will increase to 2 million as the increase in demand. In motorbike
industry of Pakistan there is a high demand of 70cc motorbikes and very immense
competition as well in manufacturing 70cc motorbike. Atlas Honda is market leader of
the industry with almost 50% of market share.

Master of Business Administration

2.2 Role of the Organization in Pakistan


In Motorbikes industry Metro motorcycles is one of the market leading brands.
Metro receive brand of the year award 2010 which is a great effort by Metro that they
achieve this award by competing many national and international organizations. Last year
Metro set a sales target of 6000 units and Metro due to its high reputation and Goodwill
in the market achieve 140% of the targeted units. This year Metro sets a target of 10,000
units of which Metro achieve 60% of the targeted units till now.
Metro is second organization in this industry after Honda which is doing their
business only in cash form just because of their goodwill and their quality products. On
the other hand all of other organizations are doing business on credit basis.

2.3 Overall organization and functions of organization in Pakistan


Metro Motorbikes Company is very well established organization in Pakistan.
Metro is serving the whole nation by its 5 regional heads (Azad Jammu Kashmir,
Rawalpindi, Lahore, Multan, and Karachi) that are covering whole of the country for the
sake of sales of Metro motorbikes and all related matters.
Metro Motorbikes have very established management system to manage the
whole organization very effectively. Metro Motorbikes have 13 departments to manage
their whole process and the human resource, they are;

Procurement
Finance
Quality
Store
Production
Human Resource & Administration
Accounts
Pre delivery Inspection (PDI)
Sales and Marketing
Information technology (IT)
Product development
Finished goods
After Sales and Services

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The process of Metro Motorbikes starts with purchasing raw material from the
vendors. They make contracts with the vendors for the delivery of specific material with
specific quality for a specific time period. Quantity of material to be purchased is decided
by the sales target which is to be achieved.
After the material is purchased and checking its quantity it is checked by the
Quality department. They check the quality of raw material purchased. If the raw material
doesnt meet the specified quality standards it is rejected and sends back to the vendor.
If the material is passed it is transferred to the store room, from where material is
transferred to the supervisor of the relevant sub departments within production
department.
In production department bikes are manufactured. In production department there
are further departments which are divided on the base of specialized work like engine
assembly, wheel assembly, paint shop, main assembly and so on. The end product of
every sub department is transferred to the main assembly and on the main assembly
whole bike is assembled.
When a bike is assembled it is transferred to the next department which is known
as Pre Delivery Inspection (PDI). In this department bike is checked by QC department.
There are several tests which are which are specially conducted in this department to
check a bike. If a bike didnt perform up to the mark it is transferred to the relevant sub
department in the production department to which its problem is relating and if a bike
pass out all the tests it is ready for the delivery and is transferred to the sales department.
In sales and marketing department, bikes which are transferred from production
PDI department are transferred to the dealers of METRO Motorbikes. In METRO Gujrat
there is only sales and after sales department is working and all marketing concerns are
handled at the main office at Lahore. In sales department METRO MR-70, MR-125 and
other spare parts are sold to the authorized dealers who are sale dealer, warranty dealer
and parts dealer.

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In HR&A department whole of the workforce which is about 350 workers are
managed. All of the concerns related to employees are handled in this department from
hiring till firing.
Finance and accounts are two separate departments. Both of these are working
only in the main office at Lahore. In finance department routine bases of transaction
regarding finance are occurred while accounts department maintain accounts of Metro
Motorbike Company.
Function of IT department is to maintain all of IT related equipments in various
departments of the organization.

2.4 Organization office in which I worked


Actually Metro is working in two totally diverse fields one is Metro Motorbikes
and the other one is Metro fans. I start my internship in Metro motorbikes because of
their proper management system. Metro motorbikes have more than 13 departments and
their main heads in Lahore office.
In Gujrat Metro didnt have all of the departments because in Gujrat their main
concern is with manufacturing so they have all those departments which are related to
manufacturing from purchasing raw material (Procurement) to selling (Sales and after
sales services) departments. Some of the departments which have no direct link with
throughout the process from purchasing raw material to selling bikes are accounts,
marketing, are handled through the main office at Lahore.
So for the sake of internship I spent my time in manner to understand the whole
process of METRO motorbikes, from purchasing raw material to the end which is selling
motorbikes and dealing with warranty within after sales department.

2.5 Summary
For the sake of internship I choose Metro Motorbikes Company Gujrat because of
it well organized management system as compare to other manufacturing organizations.
Profit potential in motorbike industry is very high because of increase in demand. There
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are almost more than 40 organizations in this industry. Metro is at second place in
Pakistan in this industry and receives brand of the year award 2010. We can measure
success of Metro by sales of last year that they 140% of the target sales.
Metro is serving whole the whole nation through its 5 regional heads and more
than 70 sectors under these heads to serve the customers nationwide. There are 13
departments in Metro Motorbikes Company to manage the organizations process. I
worked as internee in the only manufacturing unit of Metro and this region is AJK region
also known as Gujrat region some of the departments of Metro like Procurement, Store,
Quality, Production, Finished goods, Sales and Marketing and After Sales.

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Chapter 3
Organization Analysis
3.0 Half Page Introduction
In this chapter I will try to analyze the whole Metro Motorbikes Company on the
base of my knowledge which I gain about the organization during my internship. As I
have discussed earlier that in Gujrat where I worked as an internee the only
manufacturing unit of Metro Motorbikes and main or head office is in Lahore.
Motorbikes are supplied to the whole country from Metro Gujrat. All the decisions and
budgets are planned at head office and then communicated to the supervisors of the
relevant departments.
Metro start manufacturing motorbikes in 2003 and in a very short time period
Metro came in competitors list of many multinational brands like Honda, Yamaha, Suzuki
etc. Metro is an ISO 9002:1994 certified organization. Metros product and development
department is so efficient that it introduces many innovations before its competitors do
e.g. digital meter is introduced by Metro for the first time in the market. Metro is highly
committed in producing quality products and is approved by various institutions e.g.
Pakistan Standard and Quality Control Authority, Standard Development Center.

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3.1 Brief history of the Organization


Metro was established in 1973, by Younas group of industries and become a
private limited organization on 7th October 1985. In start Metro manufactures electrical
fans of various designs and shapes it includes ceiling fan, Pedestal, Exhaust, table fans,
circumatic fans and double action bracket fans. After having expertise in the field of
Electrical fans Metro started a new setup of manufacturing motorcycles under the same
brand name in 2003.

Vision
To be a leading industry manufacturing contemporary high quality durable
products making life truly pleasant.
Mission
To build better relations with all stake holders especially with customers and
tailor sophisticated products at affordable price to serve local and global markets.
Main Goals of the Organization

It is goal of Metro organization to achieve international standards in


production

Metro Motorbikes Company is committed I innovating new products and


improving current products.

Metro is trying its best to adopt highest level of customer services.

Metro struggles in developing more customer-oriented approach

Objectives
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Metro objective is to provide friendly and safe working environment to

employees
Metro objective is to develop human resource to inspire workmanship
Its Metros objective that continuous improvement in plant ensures better

quality.
Metro objective is to train its technicians and develop a network of authorized

workshops.
Metro objective is to ensure the availability of genuine spare parts to the

customers.
Metros objective is to have an efficient network of dealership for delivery of
products.

3.1.1 Actual and prescribed functions


Metro is competing with many national and multinational companies in the
market. Metro has its prime focus on its customers and for that purpose Metro is
widening its area to many new cities and also makes quality and innovative products for
its customers. Metro Motorbikes Company deals in sale of Metro MR-70 and MR-125 in
various color ranges but its main focus is on MR-70 just because of its high repute and
demand in the market. Metro also sales spare parts of Metro motorbikes to Metro
automotive parts dealers, not only this Metro also gives warranty to buyer for motorbike
and also provide free service of motorbike for 1st two times.
Metro is just focusing on MR-70 but they are not focusing on MR-125 but still
there is demand of 125cc bikes of other companies like Honda so Metro needs to give
equal importance to both bikes.

3.1.2 Relationship of head office to the offices


The main office of Metro Motorbikes Company located at Lahore. All the
departments are operated directly from the main head. There are about 13 departments in
Metro to manage their operations. Some of the departments are only operated at main
office like accounts and finance and on the other hand all the other departments which
have direct link with production like procurement, quality, sales etc. are working in Metro
Gujrat.
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All the decision is taken in the main office Lahore. All the supervisors from all the
departments went to Lahore every weekend the decisions are communicated to the
relevant department supervisor e.g. top management set a target to manufacture 300 bikes
per day, than this message is transferred to procurement departments supervisor to buy
enough raw material to meet target, HR&A departments supervisor to hire enough
workforce to meet the target and so on.

3.1.3 No. of Departments


To manage various operations every organization need a specialized set of
departments. Similarly Metro has various departments to manage all of its operations and
they are;

Procurement
Quality
Production
Sales and Marketing
Information Technology (IT)
After sales services
Human resource and Administration (HR&A)
Pre Delivery Inspection (PDI)
Dispatch
Store

Not the entire departments are working in Metro Gujrat but some of them are
working here in Gujrat properly and rest of all departments are working and managing
operations at Metro Lahore.

3.1.4 Offices or field offices


Metro Motorbikes Company has their regional heads as sub offices. They divide
the whole country in four regions i.e.
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Lahore
Karachi
Rawalpindi
Multan
Azad Jammu Kashmir also known as Gujrat region.

These regional offices are used for better and prompt communications. In these
field offices there are only staff related to sales department, after sales and HR&A
department. These regional heads are further sub divided into sectors to manage some
aspects of sales and after sales services in a better way. Under Lahore region there is
Lahore sector, Faisalabad sector and Gujranwala sector and Multan sector there are
Multan sector, Dera Ghazi Khan Sector, Bahawal Nagar sector and Rahim yaar Khan
Sector. There are almost 72 warranty dealers of Metro Motorbikes Company under these
regions and their sectors.

3.1.5 Current staff


Currently Metro Gujrat has very experienced staff in all of its departments
through which Metro is progressing very rapidly. There are 25 staff members working in
various departments of Metro Gujrat. Following are some individuals with whom I
worked as internee.

In Sales and Marketing department there is only one person Mr. . . who is
responsible for all the concerns regarding sales and marketing.

In after sales services department there are two personnel Mr. and Mr.

In procurement department there is only one person managing whole of the


procurement department and communicating to the head office of
procurement department at Metro Lahore.

In production department there are round about 350 members in various sub
departments of Metro motorbikes production department e.g. Engine
assembly, Paint Shop, wheel assembly etc.

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3.2.1 Current staff of branch according to qualification and experience


All of the staff personnel are experienced in their relevant fields and are working
with Metro for a long period of time. For any new recruitment for the management posts
Metro required a person having master degree and minimum middle for the workers in
production department.
As far as current staff is concerned following is the qualification and experience
of some of the employees at Metro.

In production department now a days it is rule to hire a person having


qualification at least middle, but current workers in production department are
even illiterate but they are specialized in their fields.

3.2.2 Training received by no. of people


Just like other advanced and well developed organizations Metro trained their
employees to make them trained and up to date in their relevant department.
Training need for the employees is accessed by the relevant department
supervisors. Training is provided to the employees under an organization named as
Pakistan Electrical Fan Manufacturers Association (PEFMA).
Metro also give training to the external people about the maintenance of Metro
motorbikes under an organization Technical Education and Vocational (TEVTA) and at
the end of training Metro gives certificate to the individuals.

3.2.3 Workload
Workload refers to the number of hours employees worked in Metro. In Metro
working hours are from 8:00 am to 5:00pm. Employees worked in the organization for

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about 9 hours. There is a break to employees from 1:00pm to 1:45pm and in this break
lunch is offered to all of the employees of Metro by the organization free of cost.
Employees are also allowed to work for extra time and they are being paid on per
hour based predefined rate along with the salary.

3.2.4 Salary Structure


Metro is using job based method to give salary to their employees which means
that salary is paid to employees according to their job post.
Metro is paying Rs.,,,,,,,,,,? minimum wage which is set by Government of
Pakistan for labors. Metro pays salary to employees according to their experience in
Metro or any previous experience with any organization. Metro also pays some
allowances to its employees e.g. house rent, utilities, conveyance allowance, and medical
allowance.

3.2.5 Promotion system


Promotion system is used in almost every organization to give reward to honest
and hard worker employees of the organization. Similarly in Metro promotion system is
adopted and individuals are promoted to upper grade by evaluating their performance.
This process is also known as succession planning that one is prepared for higher job post
after the retirement of person on that post.

3.2.6 Incentives & Motivations


Incentives and motivations are some tools to boost up employees performance
who are working well and also positive reinforcement for the employees who are not
working up to the mark.
In Metro incentives are paid to various departments on various bases, because
performance measures are not same for all of the departments.

Incentives to employees of production department are paid on occasional

bases in shape of money e.g.


In after sales department also, staff is not rewarded with money. They are also
rewarded with tours but within the country. Organization affords all of the

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expenses of tour. Staff members from after sales department went to tours
with warranty dealers of better performance.

3.2.7 Responsibilities Performed


As internee I joined Metro on for a time period of six weeks. The main purpose of
my internship is to understand the whole organizations management system. Metro has
its head office at Lahore and all of the operations of Metro are operated at Metro Lahore.
All the departments working here are sub offices of Metro organization. Metro Gujrat is a
manufacturing unit of Metro so it has more of its concerns with production of motorbikes
and all other related functions.
So for internship purpose I decided to study whole of the process of Metro
Motorbike from purchase of raw material to sale of motorbikes to sales dealers and
providing after sales services to the employees.

Duties performed in first week


To understand the whole process of Metro, in the first week Mr. from HR

department and Mr. give me brief introduction of Metro motorbikes and all of its
functions and departments operating the whole process.
To study thoroughly about the production process I start my internship from
procurement department. While in working as internee in procurement department
they only told me functions of this department and rest I observe from their
working.
In short main function of procurement department is to buy raw material from
particular vendors and transfer it to production department. Now Metro
Motorbikes Company has 80 vendors. Metro buys raw material from vendors on
credit basis.
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To choose a new vendor Metro gives tender notice in newspapers and then
vendor is selected by a panel including personal from top management and from
finance department too. After setting quality standards and rates with vendor
Metro Motorbikes Company gives a pilot lot order to supplier which is to check
sample and after that routine orders are given to supplier. This department is
monitored by main office of Metro Motorbikes at Lahore.

Duties Performed in second Week


In the next week I study the remaining sub departments of production

department paint shop and main assembly in which motorbike is assembled at the
end.
After analyzing the whole production department I moved toward next
department which is Pre Delivery Inspection (PDI). In this department various
tests are conducted to check motorbikes that whether they are working properly or
not. Some of the tests are wheel alignment test, speed test, electrical system test,
speed meter test, accelerator test and so on. After these numbers of tests, if the
bike qualified all of the tests bike is transferred to dispatch or finished goods
department.

Duties performed in forth week


In fifth week of my internship joined after sales and services department Mr.

Sabih-ur-Rehman and Mr. Badar give me a detail view of after sales department.
There are 3 warranty dealers in AJK region. They also tell me about warranty
policy of Metro motorbikes and they deals with claims. They also give me
description of services which are offered twice by Metro organization free of cost
for a new motorbike. They also tell me about training they give to the service
dealers. How they get feedback from customers and how they give report to
higher officials and also provide me some information about free service camp
conduct by Metro as sales promotion of their brand.

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Duties Performed in fifth Week

Master of Business Administration

In the last week I practically do some work with Mr. Badar. I check the claim
slips which are filled by warranty dealers and are submitted to after sales
department for the sake of collection of dues from organization.
I also visit HR department to collect some information regarding internship
report from MR. Hassan and also collect some information about IT department.

3.2.8 Critical Analysis of the Branch


The branch in which I worked as an internee is known as AJK or Gujrat region of
Metro Motorbikes Company and this branch is also having pivotal importance in Metro
organization because it is also the only production unit of Metro Company.
Being as internee I saw that this branch is performing at its best. All of the
departments are working on rules and regulations and also adopting fundamental
studies which are important to run an organization.
There is a need of improvements in the organization in almost all of the
departments at Metro Gujrat. There is lack of power for decision making. All
of decisions regarding any aspect took at main office in Lahore. There is a
need of decentralization in the organization to some extent to make some
decisions which didnt need any sort of involvement from top management.

While working as an internee in sales and marketing and after sales


department I observe that employee must be rewarded with financial rewards
instead of any national or international tour.

While working as internee in production department I observed that free hand


is given to employees and supervisors are not monitoring employees properly.
If they do so efficiency of employees can increase easily.

Metro Gujrat have very well educated and experienced management who are
struggling to maintain and improve the position of Metro.

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Communication system of this branch with main branch is pretty good and
Metro Gujrat has very effective communication system within the
organization as well.

Production department is working very well. The entire workforce in the


department is fully trained and experienced.

To reduce number of errors and to make a perfect motorbike for customers,


there is a quality check at every point while manufacturing a bike.

Throughout the process of manufacturing from purchase of raw material to


sale of finished goods all departments are working on standards for production
of quality product.

3.3.1 Communication System


Metro Gujrat has it main office at Lahore and all the major decisions took by top
management at Metros main office. All the head of departments from this branch go to
Metro Lahore and decisions are transferred to them for its implementation. A single
decision is further bifurcated for all of the departments so that it becomes easy to
implement.

3.3.2 Morale of Staff


Overall progress has a great link with the morale of staff working in the
organization. There is a direct link between organizations output with the level of
employees morale.
While working with management staff at Metro I observed that morale of
employees at Metro is very high because they work enthusiastically for the organization.
Recent achievements like brand of the year award and achieving140% of sales target also
shows morale of employees at Metro.

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3.3.3 Physical facilities


To get maximum output and utilize all of the abilities of personnel it is required to
provide them all of the physical facilities in which they feel comfortable to work. Metro
provided separate rooms to separate departments, rooms are fully furnished and air
conditioned, computers are available to every staff member with high speed internet
facility, during break time lunch is offered to all of the employees at Metro with a very
delicious menu changes on day to day basis and all the other facilities like furniture,
stationery, etc. are provided to staff members.

3.4 Performance
Performance of manufacturing organization can be measured by number of
customers satisfied with the quality of products manufactured by the organization. As
Metro manufactures motorbikes and they are targeting whole country.
Performance of Metro can be measured by some of its recent achievements and
the way Metro do its business.

Performance through Customer satisfaction


Customers are fully satisfied by using Metro motorbikes. Metro has second

highest market share in motorbike industry. There is very little difference in both
Honda and Metro but on the other hand there is a great difference in the price
level of both motorbikes. That is why large number of customers are willing to
buy Metro motorbikes.

Performance in terms of accounts and budgets


After Honda Metro is 2nd largest brand in motorbike industry of Pakistan.
Metro is the only local brand which is doing business on credit basis.
Metro receive brand of the year award in 2010 which is an achievement by
Metro. Because Metro receives this award after leaving many national and
multinational brands behind.

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Last year Metro achieves 140% of its sales target, which is a proof of trust
of large number of customers on Metro.
This year up to now Metro achieves 60% of its targeted sales.
While working in after sale & services department I come to know that
that metro has zero claim for its engine and very less claims against other
parts.

3.6 Summary
In this chapter I discussed that Metro was established in 1973 and started their
business from fans and in 2003 diversified business in to motorbike industry. Metro
Motorbikes Company is dealing in MR-70 and MR-125 and its business is spread all over
the country. There are 13 departments at metro and head offices are at Lahore. Metro has
its field office in major cities of the country to serve their large customer base with an
ease. Currently Metro has very well educated and experienced staff and the working
hours for the employees are 9 hours with a break of one hour. Metro give handsome
salary packages to their employees and some annual rewards to employees as well.
I also briefly discussed duties which I performed at Metro and also discussed
performance of Metro organization in terms of customer satisfaction and on the basis of
accounts as well. Morale of staff of Metro is high which is represented in recent
achievements by Metro.

Chapter 4

4.0 Introduction
This chapter includes some of the policies of Metro Motorbikes Company.
Policies are set of processes that a company adopts to perform various functions. This
chapter also includes some of the functions which are performed by various departments
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of Metro Motorbikes Company. At the end there is detail about some success stories of
Metro Motorbikes Company which are achieved in recent years.

4.1 Policies
To achieve annual objectives of an organization policies are formed. Policies are
combination of some guidelines, rules and procedures. Policies are made for repetitive
conditions and they help organizations to make decisions with an ease.

Quality Policy
.

Warranty Policy
Metro Motorbikes Company also offers warranty for its motorbikes and a

policy is also formed regarding warranty claims. Warranty policy is defined to


check that whether its fault of company or its the fault of user of the bike.
Warranty policy of Metro is Metro Hi tech (Pvt.) is trying its best to provide free
of error motorbikes to the customers, but being a human there is possibility of
any error. If there is error in the bike due to any workers fault, company will sort
that problem out. But it is conditioned that motorbike is properly used and user
take care of that motorbike up to required extent.
Conditions for Warranty
Warranty is given on every Metro motorbike for a specific time period
and for a specific distance traveled by that particular motorbike which
starts from the date of purchase of motorbike. Warranty automatically
comes to an end if any of the given limits reached.
It is required for normal customers to get benefit from the facility of
warranty and get their motorbike first tuning from any nearest warranty
dealer and get their motorbike second free tuning and checkup according
to the schedule given by company.
If there is an error in any Metro Motorbike, Metro Motorbikes Company
is only responsible to change that part which is the reason for error. In
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that case company gives free services and free of cost product to the
customer. But if the reason of error in the motorbike is it wrong usage
than Metro Motorbike Company is not responsible to fulfill any claim.
Motorbike which is out of order must be present at any nearest warranty
center.
It is required for all customers to read warranty policy carefully and
sign on warranty card.

Limitations of Warranty

All of the claims which are made by customers are not entertained but there are
some limitations for warranty. That warranty will not be valid under any of
following conditions;
All such kind of motorbikes which are not properly tuned and get their
routine checkup according to the schedule given in the owners
manual.
All those motorbikes in which genuine Metro oil is not used.
If some changes are made in motorbike or use some additional parts.
If the motorbike is used in any kind of racing, rally or track racing.
If there is an error in the layers of chromed or painted parts due to
industrial pollution, dust, or moist.
Any sound, vibration, or any leakage of oil which have no impact on
performance of motorbike.
If any error occurs in motorbike due to any non genuine parts, oil, and
poor quality grease etc.
All those errors which are occurred due to improper motorbike usage,
oil changing on irregular basis, or due to usage of poor quality petrol
and due to worse condition of road.
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All those motorbikes which are used for commercial purpose or use as
a taxi.
If a motorbike during warranty period is repaired from any workshop
which is not authorized warranty dealer of Metro Motorbike Company.
All such motorbikes which are not used according to the way of use
mentioned in owners manual.
Error occurs due to rubbed chrome parts and painted parts.
Errors occur due to changing in electrical system or additional
electrical load.
Errors occur due to any unauthenticated storage of motorbike for a
long period of time.
All those errors which are not differentiated that whether it is material
error or due to negligence of human being.
Metro Motorbikes Company has the final decision to give a warranty
claim and customer is unable to perform any legal proceedings against company.
Company has the right to make some changes in warranty policy without giving
any prior information.

Warranty period
Warranty periods are different for both of Metro MR-70 and MR-125 and
they are;
Metro MR-70
For Metro MR-70 warranty period is 1 year from the date of purchase of
that motorbike. During the warranty period of one year facility of
unlimited mileage is also included.

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Metro MR-125
Master of Business Administration

Warranty for Metro MR-125 is valid for 6 months and up to


6000kilometer. Warranty comes to end if any of both reached to their
specified limits.

4.3 Success
Metro by implementing various strategies gain a very well repute in the industry.
Metro is committed to serve their valued customers by their quality products.

Metro is second largest motorbike manufacturers in the country.

Metro also achieve brand of the year award in 2010, which is very important
success in the history of Metro. Metro achieve this award by leaving many
national and multinational companies behind. In the recent years this award is
hold consecutively by Atlas Honda.

Metro is the only local organization which is doing business on credit basis.

Metro achieves 140% of its sales target in last year due to its customer
oriented strategies.

Metro by focusing on intensive strategies introduce digital meter in the


country for the first time.

Metro is running on its good will because they have marketing expenses up to
negligible level.

Unlike other motorbike manufacturers Metro has very low level of claims
regarding major parts of motorbikes.

This year Metro achieves 60% of its sales target.

4.4 Summary
In this chapter I have discussed some of the policies of Metro Motorbikes
Company. Through these policies Metro is progressing day by day and also mange some
of its major issues like warranty. I have also discussed Metros success stories in recent
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Master of Business Administration

years. These successes in Metro are only due to the strategies they applied in the
organization.

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Chapter 5
Application of Models
5.0 Half page introduction
In this chapter I will discuss Metro Motorbikes Company according to its external
environment. This external environment is friendly in some cases with the organization
and sometimes has very negative impacts on the organization. There are some strengths
of the organization which help the organization to face some threats from external
environment and through these strengths organization can also overcome some of the
opportunities in the external environment. As the organization has some strength it also
has some weaknesses too.
On the other hand organization faces some threats from external environment.
These threats may be in the form of political instability, economical instability etc. But it
is the duty of management of the organization to determine any threat which organization
is facing than took some steps to overcome those threats.

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5.1 SWOT Analysis


SWOT is the analysis of organization in which internal environments like
strengths and weaknesses are compared with external opportunities and threats. Through
organizational strengths Metro can overcome the opportunities in the external
environment and also can reduce external threats.

On the other hand organization can also overcome its weaknesses by the help of
SWOT analysis. More the weaknesses are there in the organization the more the threats to
the organization. So through this analysis organization come to know about its strengths,
weaknesses opportunities and threats and by analyzing all this management can move
organization in a position where the organization faces very few numbers of threats and
have enough strength to overcome opportunities in the external environment.

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Strengths
Metro Motorbikes Company is ISO 9001:1994 certified organization, which is
a strength for this company over many of its local competitors.
Metro receives brand of the year award in 2010 which is Metros highest
achievement in some recent years.
Metro is providing new technology products in the market. Recently Metro
introduce digital meter in Metro MR-70.
Metro is has second highest market share of the industry.
Metro is the only local organization dealing on cash basis.
Metro has very powerful brand image due to its long history of serving the
nation.
Metro Motorbikes Company has well educated, professional and experienced
staff members.
Metro has extra ordinary sales revenue because they achieve 140% of targeted
sales in recent year.
Metro has very competent after sales services staff because they have direct
contact with end customers and organization reputation depends on these
frontline managers.

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Master of Business Administration

Weaknesses
Metro is not investing properly on marketing of its products.
Metro is not properly giving rewards to the employees on some extra
performance. Rewards must be in the shape of money.

No proper check balance for employees of production department. Their


supervisors are not performing their job up to standards.

Marketing department is handling all of its activities from main office at


Lahore. There is no marketing office at regional offices like AJK.
Staff of some departments is though well experienced but they are not well
educated. So they are not able to run with modern trends.
Metro has very limited number of regional and field offices. So they might
face hurdles to serve diverse customer base.

Opportunities
Through use of state of the art technology Metro can decrease its cost and
increase its profits as well.
Metro can attract more of potential customers by running marketing
campaigns.

Threats
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Master of Business Administration

Entrance of new competitors in the industry is a major threat to Metro.


Because with the entrance of every new competitors some of the potential or
ex customers move toward that brand.
If Govt. of Pakistan changes import policy, it is a major threat to Metro
because Metro is importing some major parts of motorbikes form China.
Prices of raw material are increasing day by day.
In Metro decision making is very centralized, lower management have
authority to take decisions up to negligible level.
Increase in price of petroleum on rapid basis.
Existing rivals to Metro like Atlas Honda, Yamaha, Sohrab, Ravi etc. are also
a threat to Metro Motorbikes Company.
Unemployment and inflation in the country reduces buying power of people.

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5.2 PEST Analysis


PEST is the analysis of political, economical, social and technological factors
which an organization is facing from its external environment. These forces have direct
impact on the performance of organization.

Political

Economi
cal

Organizati
on

Social

Technolog
ical

These all can be benefits to an organization as well like if there is any change in above
given forces which are organization friendly can lead organization to the path of success.

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Master of Business Administration

Political
Political factors have direct influence on an organization. Political instability in
any country has direct impact on its industrial sector. When any new government/party is
set to rule they introduce some tariffs which are in favor to them. These changes in
policies on government level can affect a business to great extent.
Now a days terrorism is a major political drawback of the country. It is also a
threat to any organization that they have to spend millions of rupees on their security
purpose.
Energy crisis really ruin industries in Pakistan. There is shortfall of thousands of
Megawatts shown in summer season and load shedding hours reach up to 16 to 18 hours
a day. To use alternatives of energy like generators increase cost up to great extent. Now
load shedding of Sui gas is also started which is also a threat for Metro because
alternatives for these are much expensive.
Metro purchase it engine of Motorbikes from China, any political instability or
trade barriers can cause a real problem for Metro.

Economic factors
Economic factors have direct and immediate impact on any organization. Due to
high rate of inflation in the country, prices of raw material increasing rapidly. Its hard for
any organization to buy raw material at higher price and sell the finished goods at lower
prices with quality assurance.
Unemployment is also a major economic factor. Because of this evil buying
power of public reduce to great extent.
Along with energy crisis prices of electricity and Sui gas are increased very much
and cost of manufacturing a bike increased as well.

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Master of Business Administration

Social Factors
Organization only exists until people like its products or services. Social factors
can influence any organization up to great extent. Now a days there is a demand of 70cc
motorbikes because of its less petrol consuming function. Metro is making profits from
MR-70.
On the other hand there is a segment of people who like heavy bikes, Metro needs
to cater the need of that particular segment.

Technological Factors
Technological factors also influence a lot a business functions. As technological
changes are occurring on rapid basis company has to adopt newest technology to remain
in competition and sustain its competitive advantage.
Metro is serving its customers with latest technological and quality products.
Metros product development department is striving to introduce something new in
market. Recently Metro introduces digital meter for Metro MR-70 which is competitive
advantage of Metro Motorbikes Company.

Summary
Environmental analysis of Metro is done in this chapter through two of these
analytical tools SWOT and PEST. In both of these it is discussed that how external
environment can affect the internal environment of the organization. It is also discusses
that which are opportunities prevailing in the market and the strengths which organization
is have to overcome those opportunities and also to reduce it weaknesses.

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Chapter 6
Recommendations
After studying the whole organization I have some recommendations for Metro
though Metro is experienced and leading organization in the industry but no one is
perfect and process of improvement never comes to an end.
There must be a marketing department in all of the regional offices.
Metro Motorbikes Company also needs to invest on marketing purposes to
compete properly. Because other companies like Honda Yamaha are running
marketing campaigns for their product through various media.
While working as an internee in production department I observe that employees
are not working properly which causes wastage of time. So it is recommended to
the organization there must a strict eye on the working of employees to reduce
wastage of time.
A proper system for training and development system should be
As Metro Motorbikes Company is second largest organization in Motorbikes
industry it is highly recommended to Metro to increase the numbers of regional
areas to target more number of customers with an ease.
There is centralization in decision making in Metro Motorbikes Company so
decision making must be decentralized in the organization.

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Master of Business Administration

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