Student Name: Dukhtar-e- Saeed

Submission Date: 13 Jan, 2016

Assignment on Dawlance refrigerator company
Department of English
Kohat University of Science & Technology

Table of contents

Title page ----------------------------------------------------------------------------------------------1

Table of Contents------------------------------------------------------------------------------------2
Introduction of Dawlance----------------------------------------------------------------------------3
Home Appliances Industry --------------------------------------------------------------------------4
Management System and Management Functions -----------------------------------------------7
Strategic Decisions --------------------------------------------------------------------------------- 15
Environment ----------------------------------------------------------------------------------------- 16
Dimensions that shapes the Company's Culture------------------------------------------------ 18
Working on the goals and Planning Techniques ----------------------------------------------- 19
Organizational Hierarchy -------------------------------------------------------------------------- 21
Recommendations for the company for growth ------------------------------------------------ 22

Introduction of 'Dawlance'
Dawlance is the 7th most Favorite brand in Pakistan out of 3500 brands Highest market
share in 3 out of 5 categories Among Top 2 Top of mind (TOM) Brands in all product
categories Research revealed that Dawlance is in Every 2nd house hold in Pakistan (out
of those house holds which have appliances) Dawlance is considered to be the most
Reliable & Innovative brand among all home appliance brands in Pakistan.
Dawlance is a leading manufacturer of house hold appliances in Pakistan. It is privately
held organization. The company has maintained superior quality standards. The Company
hired up to 5000 employees. It stands for durable and reliable household appliances.
Dawlance was established in 1980. It was established by Mr.Dawood Bashir. It was set
up in Karachi Clifton Steel Bridge, Dr. Ziauddin Ahmed Road. It has a long history of
more than 3 decades. Dawlance has the largest set up with respect to manufacturing
capabilities, retail outlets, service centers and distributors
Since 1980, Dawlance Premium Home Appliances Company has been turning houses
into homes with thoughtfully innovative household appliances. The legacy of Dawlance
that now stretches over more than 3 decades - started off with the production of
Refrigerators. Today, Dawlance with reliability as its core value - provides cutting edge
Washing Machines, Chest Freezers, Vertical Freezers, Split AC & Microwave Ovens.
Over the last 35 years, Dawlance has not only developed the largest dealer network but
has also established the largest after-sales service across Pakistan.
Its factory is located in Hyderabad and Karachi. The company has almost sixteen big
ware houses all over the country and retail stores in almost all the big cities. Its imports
its raw material mainly from China, Germany, Italy, Taiwan and some other countries.
The market share of Dawlance product is: Microwave Oven 40%, Chest Freezers 45%,
Air Conditioners 15%,
The company has maintained superior quality standards throughout its 35 years and can
proudly state it is also the first Pakistan Company to have been awarded the ISO 9001,
ISO 14001 and OHSAS 18001.

THE PRODUCT
The company chosen are the manufacturer/assembler of five main products. The Products
are;
Refrigerators (Direct Cool and No frost models)
Deep Freezers (One door and two door models)
Air-Conditioners
Microwave ovens

Washing Machines

Home Appliances Industry

Home appliances industry was established in Pakistan in 1980s, on the basis of fiscal
incentives offered by the Government of Pakistan. In the initial phase, the industry
worked with low economies of scale but high production costs while remaining protected
by high customs duties on import. With start of supply side reforms and reduction in
import tariffs in 1990s, the home appliances industry received its first shock as it had to
face competition from imported products. Fortunately, the market size started expanding
and industry also restructured itself to stage a comeback with higher economies of scale
and reduced costs of production. Amazingly, the industry which was not prepared to talk
about exports at the time of Engineering Vision in 2002, took the initiative of exports
itself. Though small in number, the industry exported refrigerators and freezers worth
US$ 13 million in 2010, washing machines worth US$ 2.7 millions in 2010 and air
conditioners worth US$ 4 million in 2010. The success is not without problems the
industry faced while making its efforts to enter international market.
The domestic home appliance engineering industry consists of medium to large size
units in organized sector with enough managerial capacity. Product wise analysis of the
industry is as follow:(i) Refrigerators:
Refrigerator manufacturing in Pakistan has now matured. All the players in this product
are in organized sector, have sufficient managerial and technical capabilities and
sufficient financial strength to manage their organic growth. However, there are two
shortcomings in this product. Firstly, the compressor and a few other critical components
are not manufactured locally and have to be imported, which increases cost of
production. Secondly, the industry only manufactures direct cool refrigerators and no
frost refrigerators are not manufactured, which takes a large chunk of international
market out of the potential of this industry to export. As far as competition in direct
cool market segment in international market is concerned, the going is not smooth.
Pakistan origin refrigerators have to compete with Chinese origin refrigerators which are
cheaper as Chinese Government offers hidden subsidies.
(ii) Freezers:
Like refrigerators, the freezer manufacturing in Pakistan has also matured. All the
manufacturers are in organized sector and have the same strengths, weaknesses and
problems that are characteristic of refrigerator manufacturers.
(iii) Air conditioners:

Air conditioners industry was established in Pakistan in 1980s through fiscal incentives
and high a high tariff wall to protect local industry. It used to produce window type air
conditioners. The whole of industry closed down as the consumer preference shifted from
window type to split type energy efficient air conditioners. At the same time, Pakistan
underwent a fiscal policy restructuring phase wherein through supply side reforms, the
import tariffs were liberalized. For some years Pakistan was not manufacturing air
conditioners. Around 2006, the activity restored but only to a limited extent. Now, air
conditioners are being assembled in Pakistan through CKD/ SKD operation, only to avail
the fiscal incentives offered by the Government. In its present state air conditioner
manufacturers are not in a position to export and compete Chinese exporters who also
supply CKD/ SKD kits to Pakistan. In fact, the industry needs to do a lot of inward
thinking to integrate backward and add value locally so that they are able to reduce their
costs and export at competitive prices.
(iv) Washing Machines:
Washing machines industry in Pakistan is clearly divided into tow groups: (i) the
organized sector and (ii) the unorganized sector. The organized sector of washing
machine industry started in 1980s through fiscal incentives and in its initial phase worked
under high tariff walls. The washing machine industry survived the supply side reforms
and matured. It produces approximately 150,000 units of single tub washers and 125,000
units of semi-automatic twin tub washing machines. No fully automatic machines are
manufactured in Pakistan. In comparison the unorganized sector mainly clustered around
Gujranwala and Lahore is stated to be much larger than the organized sector. Though
exact figures of manufacture are not available there are varying claims of manufacture
from 500,000 units to 750,000 units per year. This sector also claims to have exported
small quantities to under developed African markets.
The strengths and weaknesses of this sector were identified for capitalizing on strengths
and overcoming of weaknesses. Strengths and weaknesses are listed in proceeding paras.
Strengths:
(i) The Home Appliances sector has matured over its history and is ready to take off.
(ii) Export orientation already exists at limited level.
(iii) Economies of scale exist. The sector has occupied a large part (over 95%) of
domestic market.
(iv)

Large pool of low cost human resource.

(v) A number of basic technologies have already been acquired.

(vi) The organized sector has sufficient managerial capacity to handle export business.

(vii) Industry has freight advantage over Chinese competitors in Middle East and
African markets.

Weaknesses:
(i) The products are low tech. Refrigerators and freezers are based on direct cool
technology. Fully automatic washing machines are not produced.
(ii) A large part of washing machine segment is unorganized and does not have
managerial capacity to handle export business.
(iii) Knowledge about potential markets and their dynamics is not available with home
appliances industry.
(iv) The organized sector of home appliances industry needs to expand its production
capacity and needs funding availability from financial sector.
(v) Standards and certification requirements in target markets, need to be addressed.

Management System and Management Functions

MANAGEMENT: Management is the act of coordinating the effort of people to
accomplish desired goals and objectives using available resources efficiently and
effectively.
Overall the companys management is centralized. The sales officer is being given
limited authority to exercise and thus has less influence in the sales. As written above the
sales officer has to report to the sales manager every day and thus has ask for his
permission to finalize the sales.

The company till recently depended totally upon their advertising agency which was free
to do all advertising operations which resulted on a loss of control over advertising
activities.

DEPARTMENTS

There are 6 major departments in Dawlance:(i)

Marketing Department

(ii) Finance Department

(iii) Production Department
(iv) Human Department
(v)

Administration Department

(vi) Research &Development Department

1. MARKETING DEPARTMENT
This department is headed MANAGING
DIRECTOR. Then Further down in hierarchy there are:-

Brand Managers.
Manager Distribution Credit.
Customer service officers.
Institutional sale Manager.
There are different branches of Dawlance in Pakistan.
They are Headed by Regional Sales Managers. (RSMs).
The sales policies are recommended by head office for all region. The policies
for customer service are defined by General Manager Customer Service at head office.
Targets are given to regional sales Manager of each particular region and then the RSM
gives further target and incentives to sales officers to achieve the demand targets.

Marketing department controls the 4P's in the company i.e. Product, Promotion,
Placement, Pricing. They are also responsible for the alteration and Modification in the
different brands of the company and of new product e.g. They can suggest color change,
size of product etc. which is being demanded by the customers. They try to bring
innovations in the products to make them attractive for the customers and to compete
with the competitors i.e. PEL, TOSHIBA, HAIER etc.
There are print as well as electronic media for promotion activities.

FINANCE DEPARTMENT

The department is controlled by general Manager finance. Tthis department is

divided into 3 sections:Finance
Accounts
Credit Control

(i)

Finance

Finance deals with Banks

(ii) Accounts
Accounts deal with costing system, Billing &
booking transactions as well as internal auditing.

(iii) Credit Control

This section of finance department
deals with Credit and recovery procedures.

PRODUCTION DEPATMENT

This department looks after the manufacturing of products. This department is

given targets by top management to produce a specific number of products which are
ascertained by previous sales data and market conditions. This department is responsible
for quality control as well i.e. it sees there are no defects or any shortcomings in the
product. It also overseas new technologies and also to remain updated regarding any new
machinery or other equipment for better product performance.

HUMAN RESOURCE DEPARTMENT

This department overseas the selection criteria for employees i.e. it sets
different guide lines for selection of employees. After selection of employees it also offer
the training and to upgrade their skills.
The head of HR department is called HR manager.
SALES PERSONS EVALUATION SYSTEM

Every sales officers would be given performance objectives at the beginning of the year,
or when taking over a new position. These would be discussed and mutually agreed
between the supervisor and the employee. They will be used for annual appraisals.

At the end of the each year human resource department will send the two page
performance appraisals form to supervisors/managers for the employees working under
them.

The supervisors would appraise the each employee against the objectives given at the
start of the year.

Both the appraise and the appraiser are suppose to write their comments on the appraisal
forms.

The HRD is suppose to receive the forms from the supervisor and file them in the
employees personal files.

The HRD will prepare the summary for each department which will be reviewed by the
Managing Director.

THE SALES PERSON REPORTING SYSTEM

Following the schedule of meetings that should be held at all branches.

Type of Meeting
Sales Meeting
Sales & W/H
Sales/Service
Branch Meeting

Frequency
Daily
Weekly
Fortnightly
Monthly

Participants
S/Officer & S/Manager
SM., W/H Inch. & Br. Accountant
All sales personnel
S/Officer & S/Manager SM., W/H

Consequently each sales manager that is the Branch Manger has to report to the ENSM at
the central desk.

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The sales manager is basically obligated for four reports.

Company sales report
Company stock report
Company collection report
Company outstanding report

The Company sales report actually contains the details of the sold unit and invoice
number for reference. It contains the particulars of the sales made during the day. It is
prepared daily. The Company stock report has to be prepared monthly containing the
particulars of the stock in the branchs warehouse and its value and the date the present
stock was shipped. The company collection report contains the details of collections
made during the month from the particular customer. It also gives an immediate picture
of the dealers current credit limit. The company outstanding report actually reciprocates
the above report containing the current outstanding limit of the dealers. Sales manager
also has to send monthly reports about their tour programs to the central desk.

RECRUITMENT & SELECTION

Following are the guidelines for Recruitment and Selection of Sales Personnel:

All vacancies must be budgeted and approved by the M. D. Approval will be given
according to the manpower standard modified from time to time.

Supervisor should fill out the PERSONNEL REQUISITION FORM, and send it to
Human Resource Department. If vacancy is not approved, HRD will notify the concerned
branch through the NSM.

Human Resource Department will internally advertise the vacant position on the notice
boards of all company locations.

All existing employees fulfilling the recruitment can apply directly to HRD.

Human Resource Department will scrutinize all applications received from existing
employees. Applicant meeting requirements will be interviewed by the supervisor

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making the requisition. If Applicant is acceptable then applicants supervisor will be

informed to prepare replacement.

If suitable candidate is not available internally, HRD will search its data bank. If no
suitable applicant is found in the data bank, the vacancy will be advertised in the
newspaper.

Human Resource Department will prepare the advertisement and get it approved by the
initiating manager/supervisor, and place it in the Fridays newspaper. Branch cannot give
advertisement in newspaper without the approval of the HRD.

All applicants will received and scrutinized by Human Recourse Department and short
listed applicants will be called for interview.

Applicants will be interviewed by Human Resource Department or, its nominee

(Interview Evaluation Form), and if anyone is found suitable he will be sent to the
concerned Manager/ Supervisor for final interview.

The initiating department will interview the applicant (Interview Evaluation Form is to be
used) and inform Human Resource whether the applicant is acceptable or not.

Human Resource Department or its nominee will inform the applicant about the final
decision.
HRD will send the appointment letter to the concerned manager / supervisor who will
deliver it to the new employee. A copy will be sent to Accounts at the head office for
inclusion of new employee in the payroll.

Joining report is to filled out on the first day. Both the new employee and his supervisor /
Manager must sign on it and send it to Human Resource Department along with a copy of
appointment letter signed by the new employee as acceptance.

TRAINING AND DEVELOPMENT

Human Resource Department is overall responsible for arranging various types of
training to company personnel. However for specific job related training the concerned

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Head of Department has to ensure it either through his own personnel or through the help
of HRD.

ORIENTATION OF NEW PERSONNEL

It is the responsibility of the immediate supervisor/ manager of a new employee to
prepare an orientation program for the new employee and give it to him on the first day.
Supervisor/ Manager has to make sure that the new employee becomes productive in
minimum time by becoming aware of his responsibilities.

PRODUCT KNOWLEDGE
All Sales officers must acquire complete product knowledge before going out in the field
or handling any dealer / customer. Regular courses on product knowledge will be
conducted by HRD while launching any new product. National Sales Manager will
initiate the requirement. In case any changes / modifcations are made to any existing
products , it will be the responsibility of the concerned Sales Manager to show it to all the
sales officers.

SALES & MARKETING TRAINING

National Sales Manager will be responsible to compile the requirements of sales &
marketing training by having meetings with the sales managers and his personal
observations. This requirement will be given to HRD, which will design or arrange a
training program.

GENERAL MANAGEMENT TRAINING

As a policy, company continues to develop its Human Resource by On-The-Job and class
room training. Every department head is responsible to identify training needs of his
department and send it to HRD for arranging the same.

TRAINING FACILITIES
United Refrigeration Industries Limited do not have its own training facility. As written
above most on the training is done on Job, but training programs are arranged by the

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Human Resource Department in various external institutions that are catering to the needs
of such organisations.

The company rely on experienced sales force and fresh graduates are inducted only as
sales officers. Annual Meetings under the supervision of Executive National Sales
Manager provides the sales staff with information about the key roles that they have to
play for the institution.

These meetings are held in Hotels where by the help of proper visual aids, targets and the
performance so far is shown. Policies of the firm for the future is also laid down to the
sales staff.

RESEARCH & DEVELOPMENT DEPARTMENT

This is the most important department regarding the future of company as a

market leader this department is constantly in-touch with market to know about customer
preferences and specification for products.
After through analysis of customer expectations this department then give its
recommendations to the top management to being changes in the product for market
success. This department conduct surveys in market to get information. This department
is also responsible for bringing new technologies in the products.

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Strategic Decisions
PRODUCT STRATEGY: Products, which are as per international standards and carry
all the basic features. The most important factors are durability and good after sales
services.
PRICING STRATEGY: Primary focus is to cater to the middle and upper middle class
however there is a selected range of a product which cater to the upper class as well
Uniform pricing throughout the Pakistan.
PROMOTION STRATEGY: For all products the Dawlance is selling directly or
indirectly they are not promote able. There will be a lottery ticket within and on draw the
consumer will be awarded free TV or Freezers. Dawlance has got around 800 dealer all
over the country. Around 25% of dealers are "A-class" dealers who sell over 1000 units
and above per year. "B-class" dealers are those dealers who sell from 400 units up to 999
units per year. They are around 50% in total dealer and the rest are in best 25% of "Cclass" dealers sell from 200 up to 399 units per year.

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Environment
Internal Environment:
As compared to prevailing market salary and compensation plans, Dawlance offers a
relatively small package. The basic salary for an MBA Graduate ranges from 800015000.

The company have a scarcity of young blood in their sales department. In Karachi Branch
there are only three sales officers aging between 25-32 otherwise the remaining five
officers are above 40. This creates a gap which does not allow any new ideas to come up.

The company till recently depended totally upon their advertising agency which was free
to do all advertising operations which resulted on a loss of control over advertising
activities.

There is no authentic internal audit system, Branch managers are free to do all if not
regularly scrutinized.

The company imports the units to be assembled and due to constant rupee devaluation
they face fluctuating raw material cost and ultimately per unit cost, hence their sales
margin also fluctuates.

External Environment:
EXTERNAL ENVIRONMENT:
The company faces very conventional external environmental constraints. The points that
we gathered from observing the sales department we came across with the following

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The literacy level among the dealers is very low. The sales officers have to answer all
their queries structured or structured and at the same not only to satisfy them but also not
offending them.

The households have the same problems. Due to their low exposure to such products they
create hassles for the after sales service departments and even for petty things they call
the department to help them out.

The dealers are reluctant to clear the outstanding amounts and some even hire hitmen to
scare the company. Company in turn takes police protection to assist their sales and
collection department.

The environment has become competitive. They must provide the constant services to all
of their dealers and customer to attain them and avoid brand switching. For this, company
offers gift schemes to enhance the moral and motivation of the customers.

Recently the inflation and other economic crises has lead to increase in expenses in
dealers expenditures which cannot be covered by the extensive incentive schemes hence
the margins have gone down.

The dealers resort to price under cutting just to sell the product. This diminishes the per
unit product margin and also the interest of the dealers in the that particular product In
which they resorted to undercutting. So the company has to keep the checks so that such
practices are reduced.

The competition has increased. There are no quasi profits left to harvest. The companies
have to work hard to survive and maintain their positions. Thats why companies give
different incentives and gift schemes to consolidate their products.

Because of new era in technology and information emphasis should be given to first hand
knowledge so that companies can strike before their competitors do. For which the sales
personnel should keep their eyes and ears open to exploit any development in the market
structure.

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Dimensions
that shapes the Company's Culture
CULTURAL FORCES
Pakistani culture is influenced by western culture. Now every member of the family is
working. The trend has been changed now many women are also working. Because of
busy life no one has a lot of time to cooking and baking and waste their time. So now
every people use ready to eat food at their home or use microwave ovens for cooking and
baking.
DEMOGRAPHICS FORCES: Demography is the study of human population in terms of
size, age groups, gender, location, race, occupation, and other statistics. The population
of Pakistan is approximately 200 million. Karachi population approximately range from
18 to 20 million of which an estimated 90% are migrants from different backgrounds
from which approximately 49% are the female and 51% are the males. In Karachi the
female age group between 18 to 35 is 27%. As Dawlance target market is female between
18 to 45 age groups.
TECHNOLOGY FORCES: Dawlance has launched its new HEALTH ZONE products.
Dawlance, Introduces the new range of Microwave Oven. Three new DW -108 HZ, Dw 125c HZ, and DW-132 HZ models have been added in H-Zone Category. The new range
of Dawlance Microwave Ovens is meant to alleviate healthy living. With its healthy
cooking options like calorie indicator and deodorizer. Dawlance H-Zone Microwave
Ovens is a new addition to this range.
POLITICAL FORCES: The laws and government agencies and pressure groups that
influence and limit various organizations and individual in a given society. As Dawlance
import raw material from other countries. The laws and import duties affect their
business. Political instability is the biggest threat to Dawlance because increase in dollar
price increase in the cost of raw material.

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Working on the goals and Planning Techniques

In order to achieve its goals, the company is moving towards a strategy of
diversification of its product and customer base. As a result Appliances Division is
being strengthened whereby marketing network has been widened with a focus on
strengthening sales team as well as the dealer's network. Concept of 3S introduced
earlier is working satisfactorily in After Sales Service network. A special focus is
being given on widening the product range introducing new models, sizes, colours
and new finishes. The demand of appliances products especially refrigerators
which is growing at a rapid pace is augmented mainly by increased role of
consumer financing through the financial institutions and the conventional hire
purchase schemes by the retailers.

Managerial Functions For achieving goals;

Planning
Refrigerator:
Planning is very much important function of the management. Dawlance company makes
the planning regarding refrigerator by observing the market. How much a company can
sales in a particular segment's there any chance of growth is also in the planning of the
company refrigerator.
Split Unit:
The company planning regarding split unit firstly is the observation of
the market. Then after observation how much to import the split units. Finance and
trading department also give suggestion for planning regarding split unit .Then set their
plans according to the requirement.
Organizing
Refrigerator:
The organizing regarding refrigerator how to make availability of refrigerator assured.
Taking in the account the policy regarding refrigerator of the company how much to

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produce and when to produce . Almost all the department are involved in organizing and
also how much margin to give to the dealers.
Split Unit:
While organizing the company takes into account that the last year sales and how much
to sale in a particular area. Mainly quality control, finance department and trading
department are involved in organizing for how much to import, when to import, where to
import.
Leading
Reference:
Head office mainly leads all departments regarding refrigerator .All
the sub ordinate department officers lead the related department and employees and loyal
to the head office for their working. Their is check and balance situation for every
department.
Split Unit:
Head 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 reliable 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.
Controlling
Refrigerator:
Controlling 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 Unit:
In controlling of the split units, trading department mainly control the import of the splits
units. it checks the quantity of the units and quality control department checks the quality
of the split units before launching it in the market.

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Organizational Hierarchy
The organizational hierarchy starts from chairman, then move toward managing director,
general manager, senior manager, manager and ends at staff. There are 18 managers, 68
executive staff members and 3500-4000 employees.

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Recommendations for the company for growth

Co-ordination should be developed between departments to departments. This can

be done through setting goals and objectives of the whole company not only for their
different departments.

As I found brand name is very important factor in consumer buying behavior, thus
it is advised that Dawlance should work on the brand image. Although Dawlance has a
strong brand name, but it has to create much more stronger one, mainly through
advertising, to compete with PEL, Waves, and other international brands.

The company should add more features to their products. People are attracted
towards a product with unique features and something that would make the customers
feel that they have got their moneys worth.

The company should take measures to improve the quality of their products by
improving the process. Thus the company is advised to take steps towards improving the
quality of its products, other wise it will lose a lot of potential customers to their
competitors.

To gain more competitive advantage over their competitors, Dawlance has to

work on their distribution network.

Dawlance more focus should be on electronic media to get competitive advantage

over the competitors. They have to increase their advertising expenditures.

The company must give more incentives to the dealers so that they remain loyal to
the company and promote the products.

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Introduction of seasonal schemes can help to boost sales.

The product line of Dawlance is not good as compared to others like Haier,
Waves, Super Asia, so its good for the company for more success if they work on it.

Dawlance should define the companys mission and vision statement that can be
more helpful for them in future. Every organization however it is small or large has clear
direction where they want to go. Without direction or knowing the purpose of their
existence how an organization can make progress.

They should advertise throughout the year so people should remember them and
will be more brand loyal and new customers will be attracted. They should use all the
medium of advertising to be more successful in attracting customers.

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