University Of Central Punjab

“MANAGEMENT”

Section (H)

Submitted to: Prof. Abdul Sattar

Group Members:

Hassan Mansoor
(L1F06BBAM2061)

Muhammad Bilal Zakria

(L1SO7MBAM0153)

Muhammad Sohail Irfan

(L1S07MBAM0165)

1
 TABLE OF CONTENTS

TOPIC

HISTORY

MODERN NIRALA

VISION

CORE VALUES

BRANCHES

THE ENVORONMENT

PEST ANALYSIS

ORGANIZATION CULTURE

APPROACHES

PLANNING

SWOT ANYLSIS

BCG MATRIX

ORGANIZING

DEPARTMENTALIZATION

CHAIN OF COMMAND

2
 HISTORY

1940s
NIRALA’S legend began with the sub continent partition when Mr. Taj
Din migrated from Amritsar, India to Lahore, Pakistan. He settled in
one of the busiest areas of Lahore, The Meva Mundi, which was
basically a market place where people came from large distances to
sell their goods. Mr. Taj Din had an entrepreneurial spirit and saw an
opportunity to provide food to the travelers. He partnered with a friend
to open a breakfast shop, which grew popular in a couple of years.
During the same time, his partner sold off his share to him. Mr. Taj
Din aspired to be the best in the business and wanted to develop a
brand name everyone would recognize. He and his son, Farooq Ahmad,
wanted to choose a name that was unique and thus Nirala was formed.
The word Nirala stands for 'exceptional', 'distinctive', 'only one of its
kind and Nirala stands true to its name.

1950s
IN 1952-53, Mr. Taj Din started selling methai as a complimentary
line. He hired the best methai makers in the market. He also traveled
to Karachi to hire methai makers that made methai fairly new to the
people of Lahore. It was the first time cheese based methai was
introduced in this region. The shop was then moved from Meva Mundi
to Fleming road. This was when Nirala got more recognition. In 1965,
Nirala became the Official Methai Supplier for the Governor House.

3
 1960s

Mr. Farooq Ahmed joined the business when his father fell ill.
During the decades following his joining the business, Mr. Farooq
Ahmed was very instrumental in building up the business. He was
more service oriented and wanted to change the concept of selling
methai.

1970s

In 1970, Mr. Farooq Ahmed visited Japan and bought showcases for
his shop. This was the first time when the concept of sales persons was
introduced. Nirala moved a step ahead in 1971-72, when Mr. Farooq
Ahmed decided that the conventional methods of packaging methai
were too uninspiring. He contacted Packages, so they could help him
create his ideas into reality.

1980s
In 1985, Nirala received the World Star Packaging Award from
Packages. Nirala's delights were served in the Islamic Summit
Conference in 1974 and also were the favorites of the King of Jordan. In
1982, the outlet was moved from Fleming Road to Jail Road. This made
Nirala more accessible to the rather modern areas of Lahore and gave
its name a further boost .In 1987-88, Mr. Farooq Ahmed fell sick. His
brothers then ran the business for a few years until Mr. Farooq's son
(Faisal Farooq) decided to join the business in 1996.

4
 1990s
During the first few years the business was expanded in the city.
Therefore from year 1991 to 1994, Nirala spread in the major areas of
Lahore by opening branches in Moon Market Allama Iqbal Town, Hafeez
Center Gulberg and Sadiq Plaza Shahrah-e-Quaid-e-Azam, respectively.
When Faisal Farooq joined the business, he took the business to higher
grounds by deciding not to restrict their potential to a single city. In
January 1999, the branch in Islamabad was opened and was an instant
success. The following years saw the rapid growth of Nirala. Nirala's
delights were also served in state dinners during the visit of Queen
Elizabeth and Former First Lady of The United States, Mrs. Hillary
Clinton. Nirala's sweets are served in state dinners to date.

2000s:
Branches in Faisalabad and Karachi were opened in March and August
2000, respectively. Year 2001 saw Nirala move to a whole new level
when its first international branch was opened in Dubai. Later that year
another branch was opened in Defence, Township, Lahore and one in
Rawalpindi in early 2002. Nirala also launched an outlet in Al-Fatah,
one of Lahore's most popular shopping Centers. Early months of the
year 2003 brought about worthwhile growth for Nirala, when 7 new
outlets were added into its list. 3 more shops were opened in a day in
Karachi. In Lahore, Lakshmi and Gulshan-e-Ravi were added to the list
of shops in February along with one shop at Shell Fuel Station busiest
outlet in Thokar Niaz Baig and another at Allama Iqbal International
Airport in March. As the year progresses further, it is planned to add
more shops in the cities of Sialkot, Gujranwala and Peshawar.

5
 MODERN NIRALA

The brand name NIRALA operates under the name ANMOLE

GROUP OF COMPANIES it’s a family owned business having 6
companies under its business .

 NIRALA SWEETS
 NIRALA SALTIES
 NIRALA DAIRIES
 VISIONARY COMPUTER SOLUTIONS
 TAJ TRADING COMPANIES
 NIRALA RESTAURANTS

It has a board of directors and a Chief executive officer, all of

them a family members.

6
 VISION

The vision is to make Nirala a global brand, a brand recognizable for its
uniqueness and quality in ethnic food market all around the world. In
this perspective it consider its self as an innovative and a pioneer
company continuously offering unique products and interesting service
concepts that other haven’t even dreamt of.

CORE VALUES==

The core values, known as the Spirit of Nirala within the organization
have not changed over the generations. These values were and still
are what makes Nirala the market leader.

1. Integrity

2. Innovation

3. Team Work

4. Continuous Improvement

5. Social Responsibility

7
 BRANCHES
WITH IN PAKISTAN

 LAHORE

 KARACHI

 ISLAMABAD

 RAWALPINDI

 SIALKOT

 GUJRAWALA

 PESHAWAR

THE ENVIRONMENT
EXTERNAL ENVIRONMENT

8
According to STEPHEN ROBINS & MARY COTLER external environment
is defined as the Out side institutions or forces that potentially affect
an organizations performance.

SPECIFIC ENVIRONMENT
According to STEPHEN ROBINS & MARY COTLER the part of
environment that is directly relevant to the achievement of
organizations goals is the specific environment.

GENERAL ENVIRONMENT
According to STEPHEN ROBINS & MARY COTLER Broad external
conditions that may effect the organization is the general environment.

ENVIRONMENTAL UNCERTANITY
According to STEPHEN ROBINS & MARY COTLER the degree of change
and complexity in an organization environment is called environmental
uncertainty.

• The following diagram predicts the environment of Nirala

which is Dynamic.

9
 PEST ANALYSIS
A scan of the external macro-environment in which the firm operates
can be expressed in terms of the following factors.

 Political
 Economic
 Social
 Technological

POLITICAL FACTORS

Political factors include government regulations and legal issues and

define both formal and informal rules under which the firm must
operate.

Government at all levels is an important component of the general

environment no organization or industry is immune of the various
decisions made by the government. In the case of NIRALA the
government as such imposes no such type of duty on the methai
manufacturers in Pakistan. But on the other hand NIRALA sweets are
the first to become the official sweet of governor house of Punjab that
is an honor for them.

10
ECONOMIC FACTORS

Economic factors affect the purchasing power of potential customers

and the firm's cost of capital. The following are examples of factors in
the macro economy

 G.D.P growth
 Excess of black money in the country

SOCIAL FACTORS

Social factors include the demographic and cultural aspects of the

external macro environment. These factors affect customer needs and
the size of potential markets.

Social Cultural and demographical variables have an overall positive

impact. As our Pakistani society has different types of social norms and
values for example on different types of occasion’s exchange of sweets
is a very common thing as in RAMAZAN, EID, BASANT, SHAB-RAT,
BIRTH OF NEW BORN BABIES, WEDDINGS etc.

TECHNOLOGICAL FACTORS

Technological factors can lower barriers to entry, reduce minimum

efficient production levels, and influence outsourcing decisions.
Technological variables have an overall positive effect on the business.
As rate of innovations and production technology is always in the favor
of business.

11
Technology is of particular importance because it has been and
continues to be the main source of increases in productivity. In the
case of sweet industry no such type of rocket science is being used in
the manufacturing of sweets but how ever NIRALA is keeping it self up
to date with the change in technology.

ORGANIZATION
CULTURE

ORGANIZATION CULTURE
According to STEPHEN ROBINS & MARY COTLER organization culture is
defined as a system of shared meaning within an organization that
determines, in large degree how employees act.

CHARECTERISTICS TO MEASURE ORGANIZATIONAL CULTURE

1. MEMBERS IDENTITY
The degree to which employees want to be recognized by the
organizations identity, Nirala’s employees are very much proud to be
identified by Nirala.

2. GROUP FOCUS
It means that it encourages to work together, yes in some departments
of NIRALA for example MARKETING DEPARTMENT, DESIGN
DEPARTMENT, RESEARCH AND DEVELOPMENT DEPARTMENT.

12
3. UNIT INTERGRTION
It means how much integration is between different departments. In
NIRALA there is a lot of integration between departments like SALES
OPERATIONS DEPARTMENT, PRODUCTION DEPARTMENT, DISTRIBUTION
DEPARTMENT.

4. RISK TOLERANCE
It means that how employees are allowed to take risk or they have to
just follow orders. In NIRALA the employees are not allowed to take risk
they have to follow orders.

5. OPEN SYSTEM FOCUS

It mean that are employees are allow to share ideas inside or outside.
In NIRALA employees at lower level are not allowed to share ideas but
at higher-level employees are allowed to say in decision making as well
as in planning.

6. REWARD CRITERIA
The reward criteria is not so much good in NIRALA employees are
rewarded on the basis of their off their performance but the aspect of
buttering and favoritisms is also in the organization to some extent.

CONCLUSION
We conclude that Nirala Sweets have strong culture as employees are committed to the
organization. Employees know what they are supposed to do and what is expected of
them. In case of any new policy the Manager communicates, motivates and convinces the
employees and employees follow the orders.

13
 MAJOR APPROACHES TO MANAGEMENT

• Scientific Management
• General Administrative Theory
• Quantitative Management
• Organizational Behavior
• Systems Approach
• Contingency Approach

Conclusion:
We conclude that Nirala uses a system approach.As it directly interacts with the
environment so it reflects open system.

PLANNING

A process that involve defining the organizational goals establishing an

overall strategy for achieving those goals and developing a
comprehensive set of plans to integrate and coordinate organizational
work.

Goals setting is done at higher-level employees of the organization

don’t want to say in organizational planning and decisions. Traditional
Goal setting approach is use to define the organizational goals.

14
NIRALAS GOALS TO BE ACHIEVED

 geographical expansion

 hit the international market

SWOT ANALYSIS
According to STEPHEN ROBINS & MARY COTLER it is an analysis of the
organizations opportunities weaknesses, threats, strengths. In
formulating sound strategic plans, an organization must assess its
internal strengths and weaknesses in relation to the external
opportunities and threats it faces. An effective strategy will take
advantage of organizations strengths and opportunities at the same
time it minimizes or overcomes weaknesses and threats. Regular
assessment and SWOT analysis is thus given importance.

Strengths
 The unique taste & quality
 Attractive colorful packing
 High availability level in all major areas of city.
 Official sweets provider of government of Pakistan.
 Environment of shops
 Product range (also sugar free)
 Skilled sales staff
 Skilled technical staff
 Certified suppliers of Govt.

 Hundred items of sweets

15
Weaknesses
 Less brand loyalty as compared to local area manufacturers &
bakeries
 Prices are high as compared to them.
 People are fewer brands conscious.

Opportunities

 Opportunity to build brand image better.

 Introduce new brands in the market like they are doing for
example NIRALA NIMKOS, NIRALA DOODH.
 Hit the international market.

Threats
As NIRALA has jumped in to the business of dairy products also by
introducing NIRALA DOODH now there competitors will be NESTLE
and C.D.L (CHAUDARY DAIRY LIMITEDS).

16
STABILITY STRATEGY

According to STEPHEN ROBINS & MARY COTLER this strategy is defined

as a corporate level strategy characterized by an absence of
significance change.

GROWTH STRATEGY

According to STEPHEN ROBINS & MARY COTLER this strategy is defined

as a corporate level strategy that seeks to increase the level of
organization operations.

OUR FINDINGS
Now a day NIRALA is following growth strategy because recently it has
jumped in the field of dairy products with the introduction of NIRALA
DOODH in the market in year 2005.Their future plan is to jump in the
field of beverages industry also. So we can say that NIRALA is following
growth strategy at this time by following RELATED DIVERSIFICATION
strategies.

17
 ENVIORMENTAL SCANNING

MARKET ANALYSIS
In the sweets manufacturing industry their is no concept of branding
NIRALA is the first to do it in our country and they have following major
competitors in this field are FAZAL SWEETS, RAFEEQ SWEETS, SHEZAN
BAKERS, GOURMENT BAKERS, GOOD LUCK, CAKES AND BAKES ,
SHIREEN MAHAL etc.

Threat of New Entrants

Capital Requirements

High capital cost is required for acquiring good places for the outlets
if any one wants to jump in the market.

Government Policy

In our country the government has no policies for this industry.

Own Distribution system

It’s very difficult for newcomer to own a distribution channel also

because it needs huge investment. NIRALA has its own distribution
systems.

Brand identity

How to identify our brand in the market is more difficult for any new
entrants, because NIRALA has introduced such type if taste &
quality in this industry that it is very hard to compete.

18
 Threat of Substitute Products
The substitute products MAY BE

Bakery,cakes,chocolates,ice-cream etc
Local area manufacturers

Bargaining Power of Buyers

The bargaining powers of buyers are high, because

 Convince Product
 Low Involvement of Buyers
 Buying Behavior – Price sensitivity
 Brand Loyalty Status is low

Bargaining Power of Suppliers

The bargaining powers of suppliers are low because,

 Large number of suppliers in the market.

 It is an honor to become a supplier for NIRALA.
 Now NIRALA has become its own supplier .

19
 RESOURCE ALLOCATION
THROUGH BCG MATRIX

With the help of this matrix the ANMOL Group is able to have a deep
look on their products with reference to the market share and growth
rate they are capturing

20
 FUNCTIONAL
DEPARTMENTALIZATION

NIRALA Departmentalization

Sales Operations
Marketing dept
dept

Account & MIS

Production dept
dept

Supply Design Division

& dept
Distribution
dept Management
dept

Research
&
Development
dept

21
TEAM

The Nirala team consists of dedicated professionals such as MBAs, CAs,

Food Technologists, Graphic Designers, who are always in quest of
exceeding customers expectations through latest products and work
practices.The Nirala team is a select group of highly motivated
professionals who reflect the highest levels of accomplishment in the
industry.Together,they form a collaborative and cohesive group, which
will deliver customers the best products and customer service.

MANAGEMENT

Nirala's management believes in people values. They build on a firm

belief that only by delegating responsibility and functions they can
take the holistic approach that will make their company unique -
ensuring consistent and quality-focused performance on all
assignments.

MARKETING

Nirala has taken firm steps toward building premier brand and
marketing capability, having on board managers and professionals
with broad industry experience to plan and drive upcoming product
launches. Nirala decides on customers behalf for products and services
through extensive research techniques and feedback.
A mix of outdoor and indoor campaigns and number of media channels
and tools are employed by Nirala to cater to various segments of
markets we serve.

22
SALES PROMOTION

Nirala has departmentalized the manufacturing of its products, and has

not only sophisticated equipment, latest production facilities, its own
dairy plant, but also quality control and MIS departments. Stringent
checks and process controls ensure that the product reaches customer
fresh and pure, to their entire satisfaction.
Nirala has a processing facility in Lahore, making millions of pieces of
various sweetmeats every year with existing production experts.
Processing facilities in Karachi and Dubai are capable of processing
millions more.

DESIGN DIVISION

Nirala has a strong edge of in-house design division, in offering

innovative packaging and campaigns. This department works in close
liaison with marketing and not only meets all the in house needs but
also provides quality service, acting as a design house.

ACCOUNTS AND MIS DEPATMENTS

Besides above listed departments, Nirala has a strong backbone of

accounts & MIS departments, essence of any modern organization.
Their experts help them with sales trends, means of accessibility
especially intranet and broadband links, and online ordering
mechanisms, to name few.

INTERIOR

Nirala promises all its customers that modern and inviting decor of the
outlets and warm welcome of customer support team will pull
customers back to them again and again. Their customer support team
undergoes rigorous selection and subsequent training sessions and is
continuously monitored.

23
 CENTRALIZATION

According to STEPHEN ROBINS & MARY COTLER centralization is

defined as the degree to which the design making is concentrated at a
single point in an organization. So according to our research NIRALA is
highly centralized in the sense of decision-making.

DECENTRALIZATION

According to STEPHEN ROBINS & MARY COTLER decentralization is

defined as the degree to which the lower level employees actually
make decisions according to our research NIRALA is not so much
decentralized

SPAN OF CONTROL
According to STEPHEN ROBINS & MARY COTLER span of control is
defined as the number of employees a manager can efficiently and
effectively manage. Then according to our research the span of control
in NIRALA is tall.

24
 CHAIN OF COMMAND
The continuous line of authority that extends from upper organizational
level to lower organizational level and classifies into who reports to
whom. The NIRALA’S chain of command as follows
CEO

Board Of Directors

General Manager

Senior Manager

Officers

Executives

Workers

ORGANIZATION DESIGN DECISION

MECHANISTIC ORGANIZATION

According to STEPHEN ROBINS & MARY COTLER an organizational

design that’s rigid and tightly controlled.
According to our research NIRALA is a highly mechanistic organization
with following factors

25
  Clear chain of command
 Narrow spans of control
 Centralized
 High formalization

TRAINING NEED ASSESSMENT

It is define as identifying training needs of employees who is to be
train, ask employees what are their needs or you can also have an
internal research on it. HR uses questionnaire for TNA.
ON JOB TRAINING

In this process the employee is made to settle with some experience

person for 2 to 3 days the knowledge of the company transfers from 1
person to other person.
In NIRALA same procedure is being applied on the sales staff on the
distribution staff and in the production department also .

OFF JOB TRAINING

In this process you train your employees for some specific work you
would conduct it in your own premises or at some other place .In
NIRALA this type of training is given to the executive managers only.

PERFORMANCE EVALUATION SYSTEM

At the end of the year the evaluation of employee’s is done. Based on

this performance rewards are given to employees.
Compensation and benefits are also given.
A performance evaluation form is used to evaluate the performance.

26
CAREER DEVELOPMENT

NIRALA offers career development to its employees. Opportunities for

personal growth are there. An officer can go up to General Manager .

LEADING
MOTIVATION
Motivation is the willingness to exert high levels of effort to reach
organizational goals, conditioned by the effort’s ability to satisfy
individual need.
In NIRALA the methods of motivation are

 Job enlargement

 Job enrichment

MOTIVATING A DIVERSE FORCE

Motivation of diverse workforce is done through

Job sharing
Pay for performance

27
It includes incentives and bonuses based on the performance of the
employees. The other factors that are used to motivate the employees
are medical facilities, transportation facilities, mobiles etc.

CONCLUSION
According to our research we conclude the following points

 NIRALA is the leading brand in the sweet business.

 NIRALA should improve its performance evaluation criteria and
also should offer more incentives to employees.
 NIRALA should improve its hiring process for lower level
employees.
 In NIRALA the motivation level of employees is high.
 HUMAIN RESOURCE department of NIRALA is not active as it
should be.

28
29