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Project Report

FUNDAMENTALS OF MANAGEMENT
SUBMITTION DATE: November 27, 2013

SUBMITTED TO: Miss Fatima Omer

Mr. Ahmed Mujtaba

GROUP MEMBERS

Muhammad Mohteshim Ashraf 12L-4706/Section B/Batch 12/Fall 13


Ch. Zaid Iqbal 12L-4714/Section B/Batch 12/Fall 13
Kh. Owais Qurni 12L-4730/Section B/Batch 12/Fall 13
Muhammad Sohaib Hassan 12L-4825/Section B/Batch 12/Fall 13
Muhammad Imran Yaqub 12L-4767/Section B/Batch 12/Fall 13
Shaheryar Yousaf 12L-4870/Section B/Batch 12/Fall 13
SAMMI DAEWOO EXPRESS

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................... 3
KEY OPERATIONS ............................................................................................................................... 3
DAEWOO CITY BUS SERVICE ........................................................................................................... 3
Detail of Routes and Fares ................................................................................................................... 4
DAEWOO CARGO ................................................................................................................................ 4
WORKSHOP .......................................................................................................................................... 4
Driver’s Recruiting & Training System ................................................................................................ 4
Pre Selection Training ......................................................................................................................... 5
Monitoring System .............................................................................................................................. 5
Refresher Trainings ............................................................................................................................. 5
Vehicle Inspection / Fitness System ..................................................................................................... 5
General Maintenance ........................................................................................................................... 5
Pit Inspection....................................................................................................................................... 5
Wash Service....................................................................................................................................... 5
Periodic & Preventive Maintenance ..................................................................................................... 5
DASTARKWAN FAMILY RESTAURANT ........................................................................................... 6
HRM ....................................................................................................................................................... 6
THE WEBSITE....................................................................................................................................... 7
PHYSICAL AND ONLINE MARKETING SLOTS FOR OTHER COMPANIES ................................... 7
DAEWOO MILES CARD....................................................................................................................... 7
The Application Form.......................................................................................................................... 7
CUSTOMER RELATION MANAGEMENT (CRM) .............................................................................. 8
The CRM Desk.................................................................................................................................... 8
Major Fault in the CRM Concept ......................................................................................................... 8
COMPANY ORIENTATION TOWARDS THE MARKETPLACE ........................................................ 8
COMPETITORS ANALYSIS ................................................................................................................. 9
CUSTOMER PERCEIVED VALUE (CPV) ............................................................................................ 9
INTERNAL MARKETING..................................................................................................................... 9
STRENGTH............................................................................................................................................ 9
APPENDIX ........................................................................................................................................... 11
Rate List of Sammi Daewoo Express Bus Service .............................................................................. 11
Route and Destinations of Sammi Daewoo Bus Service ..................................................................... 12
Cargo Rates ....................................................................................................................................... 13
Sammi Daewoo Express Miles Card Form ......................................................................................... 14

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SAMMI DAEWOO EXPRESS

INTRODUCTION
Daewoo is the first and the biggest foreign investment Company with an advanced and organized
transport system in Pakistan. It is the only transport company to have nationwide network with various
international trade links. Being a transport service provider the company owns a large fleet of buses,
Technically Advanced Workshops to maintain the fleet for the safety of the passengers, State of the Art
Terminals, Training Institutes for Drivers and Mechanical Staff.

Daewoo has been rendering transport facilities for the last 15 years to the people of Pakistan and
appreciated by the masses simultaneously highly praised by the Governments of Pakistan as well as
Korea for its consistent success. Media of both the countries often express appreciation for the
revolutionary accomplishment of the Company in transport sector, through various channels.

(Daewoo.com.pk)

Sammi Daewoo Express is the most successful transportation company Pakistan has ever seen. It is a
company which has now made strong roots in the transportation business in Pakistan.

KEY OPERATIONS
Sammi Daewoo Express is basically performing two key operations, both related to transportation.

 1
Transportation of People
 Cargo Service ( Transportation of
goods)

This shows how the company very quickly


realized that their infrastructure could be enough
for entering two dimensions in the transportation
business. The best quality services including all
the features that a passenger could dream of are
something that Sammi Daewoo Has realized in
Pakistan. The History of Daewoo in Pakistan
goes back to 15 years. In these 15 years the company itself has evolved.

The company has a much extended network going to many cities of Pakistan. The company infrastructure
is very basic like any other local transportation service but Daewoo has reformed and decorated it in a
way that the company now holds the key position of being the public road transport also accessed by the
upper social class. The company physically exists through its terminals present in all the cities it
connects. It has workshops near terminals.
2
DAEWOO CITY BUS SERVICE
Daewoo City Bus was the first environmental and technological revolution in Urban Transport Sector in
Pakistan in 1999. Provision of A/C, call bell and announcement system were some modernistic changes in
Urban Transport Culture. Since 1999, Daewoo City Bus Division has been serving the valorous people of

1
Daewoo Bus Service rates & destination & route map is included in appendix.
2
www.daewoo.com.pk

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SAMMI DAEWOO EXPRESS

Lahore. Currently 4 routes are being operated within the city covering all the localities while one Sub-
Urban Routes is being operated for Sheikhupura.

Similar to urban transport service, same Cultural


Revolution was successfully launched for two nearer
cities of Lahore i.e. Sheikhupura (Inaugurated on June
7th 2005) as there was no bus service available earlier
having such exclusive features. Thus not only the feat
was widely appreciated by the citizens of all these localities but the said routes are strengthening the basis
of company with optimum output.

Detail of Routes and Fares


CRITERIA ROUTE NAME STAGES FARE
0~5 km Rs. 18
5.1~9 Rs. 25
URBAN 5, 10 11 & 16 9.1~13 Rs. 30
13.1~17 Rs. 35
17 and above Rs. 40
SUB URBAN LAHORE ~ SHEIKHUPURA Flat fare Rs. 120

3
DAEWOO CARGO
Sammi Daewoo Express has also made a significant position for itself
in the cargo Business. The company’s existing infrastructure needed
very little to add to support the cargo service. Along with every terminal
they have established an office which is dedicated to cargo operations.
Things as minute as a letter to things as big as furniture are no part of
Daewoo Cargo operations. A dedicated vehicle for cargo moves from
Karachi to Islamabad every 3 days which moves bigger objects. Other
small packages are carried in the passenger buses.

You are assigned a number for your belonging which you can
personally convey to the receiver who can simply collect the sent object
by presenting the number along with his NIC.
4
WORKSHOP

Driver’s Recruiting & Training System


We are recruiting our workers (drivers, technician, etc) through a comprehensive testing and observation
process. During the testing/observation, our experts observed the candidates keenly both practically and
theoretically.

3
Cargo Rate List is included in Appendix
4
www.daewoo.com.pk

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SAMMI DAEWOO EXPRESS

Pre Selection Training


After the initial selection, candidates are given 15 days practical and theoretical training (on/off the field)
for final selection. Finally the successful candidates in final test/medical might be the employee of the
company.

Monitoring System
Through our highly advance techograph system we observed the driver¡¯s driving on the routes on every
arrival of the bus at its destination. Drivers are bound to drive the buses as per the rules and regulations
(i.e. specified speed limit, specified stopovers and etc) of the company. During observation violated
drivers are recommended for further refresher course and also warned/penalized as per nature of the
violation.

Refresher Trainings
Through the critical observation on workers through the different modes of checking instruments,
management arranging time to time refreshers courses to overcome these negligence while execution of
duties.

Vehicle Inspection / Fitness System


In order to maintain the buses as road worthy all the time, our technical teams are always high alert to
meet any abnormality. For this purpose we have 18 site workshops & 4 mobile workshops fully equipped
with latest tool are working. To meet the fitness requirement of the buses we practicing the maintenance
rules recommended by the manufacture and also categorized some maintenance types.

General Maintenance
General Maintenance includes the pre departure and after arrival inspections. Generally two types of work
"Pit Inspection & Wash Service” carried out in this maintenance.

Pit Inspection
On every arrival of buses pit inspection carried out by the foreman/incharge. During the inspection
Engine noise, oil levels, water, brake system, tyres, A/V system and also rectified the defects mentioned
on crew comment (C C) paper.

Wash Service
After carrying the pit inspection bus washed and cleaned thoroughly (interior/exterior) and ready for
departure.

Periodic & Preventive Maintenance


During this maintenance we give special attention towards the regular replace parts e.g. Engine oil &
filters, steering oil & filter, gear oil, brake lining, audio/video system, A/C, radiator coolant and
passenger¡¯s facility setup etc. Further more on quarterly basis we are carrying docking service of buses.
In this service we check engine, chassis, bus interior & exterior body condition etc. We are using genuine
parts all the time to ensure the safety and comfort of our valued passenger.

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SAMMI DAEWOO EXPRESS

5
DASTARKWAN FAMILY RESTAURANT
Dastarkwan Restaurant is another type of service
provided by Sammi Daewoo Express. It is a
restaurant that exists in (Chowk Bahadur pur)
Rahim Yar Khan City of Pakistan. The Restaurant
offers ample range of Pakistani, Continental,
Chinese & Fast Food.

Dastarkwan Restaurant is the main attraction for


dinners who like Pakistani (Chicken Karhai,Beef, Chicken Haleem, Chicken Nihari Biryani, Vegetables,
and Pulses) Chinese (Soups, Chicken Manchurian, Fried Rice), Continental dishes (Salads, Pasta,
Desserts, Cold drinks) & Fast Food (Burgers, Sandwiches, Nuggets, Pizza).

Dastarkwan dish up fresh and appetizing Pakistani, Indian, Chinese and Continental food to their
customers. They use only the most suitable ingredients in all of the recipes. At Dastarkwan Restaurant,
you can imagine a wide assortment of dishes from the subcontinent.

HRM
The Company employs:

 Drivers
 Female Hostess’
 On Route Security Personal
 Managerial and Administrative staff
 Mechanics
 Terminal Organizers
 Sanitary Workers

The company selects eligible drivers and on route hosts from all the cities Daewoo Connects. Local staff
is hired for the terminals and the workshops. Daewoo has a much attractive payroll as compared to the
other transport companies. All of Daewoo’s staff including drivers is paid well. The Drivers and hosts are
selected on minimum academic criteria as well.

Sammi Daewoo Pakistan’s HR mission statement is the following

“We live by our core values every day - Trust, Teamwork, Integrity - and work towards creating value
for all of our stakeholders. Our employees are the lifeline of this business and Daewoo takes great
pride on the dedication and customer orientation of all its employees”

Mr. Arif Hussain Noumani is currently head of HR and training at Sammi Daewoo Pakistan. Sammi
Daewoo also offers training sessions to its employees on monthly basis and a compulsory training session
after 4 months.

5
www.daewoo.com.pk

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SAMMI DAEWOO EXPRESS

THE WEBSITE
Sammi Daewoo Pakistan has established its own website. It has proved to be a very useful tool in
providing the company with the needed exposure and also in expanding its revenues. The website offers
ticket booking brief information on the company and it also provides a marketing slot for other
companies.

PHYSICAL AND ONLINE MARKETING SLOTS FOR OTHER COMPANIES


Sammi Daewoo Express increases its revenue by providing a very good platform for marketing for many
other companies. The terminals host advertising banners of beverage companies and mobile
manufacturing companies. The lunchbox offered during the traveling is also sponsored by companies
using products such as water, soft drinks, biscuits etc.

In the online world the Daewoo’s website provides slots for advertisements where different companies
can post their banners on a cost which they pay to Sammi Daewoo Express.

DAEWOO MILES CARD


The latest addition to the marketing strategy of Daewoo Express Pakistan is the Daewoo Miles Card. This
is the perfect concept for building a stronger customer relation. This concept has been in action in many
other companies like PIA or Chen One which is to provide a smartcard which accumulates bonus points
on every time you buy the product or use the service
and after significant points you can use these points
in form of discounts and privileges. In this way, the
more you will travel with Daewoo Express; you will
collect more loyalty points. This is a very big step
ahead by the company in terms of building a strong
Customer Relationship.

The procedure is very simple. The customer has to


collect an application form from the nearest Daewoo
Cargo office or Daewoo Terminal and fill in the
details. A small application fee is attached along with and deposited. The customer can later receive
his/her Daewoo Miles Card from the Daewoo CRM Desk or it is spontaneously posted to the applicant.
6
The Application Form
The Application Form is of much importance as well. An application for the Daewoo Miles Card reveals
to the company the most travelled routes and also how the public is becoming aware of the services which
Daewoo Express is providing.

Once the customer is a cardholder, he/she becomes the part of the company’s records. On the basis of the
smart card, the customer is the recognized by a digital number. The company then will have the record of
how often the customer is using Daewoo Express and for what purpose and on what route he is most
frequent.

6
Daewoo Miles Card Application Form is included in appendix.

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SAMMI DAEWOO EXPRESS

CUSTOMER RELATION MANAGEMENT (CRM)


Sammi Daewoo Express is a company which has successfully implemented the CRM concept in Pakistan.
CRM is a term which basically defines the concept of providing value to the customers and striving to
keep the customer over a longer period of time. This concept constitutes the concept of CLV (Customer
Lifetime Value). Daewoo express does all this successfully. They start from the basics by making a
feedback form available in every bus for the customers. This helps in getting to know if the customers are
unhappy with something and to know what they like the most.

The CRM Desk


A physical CRM desk also exists. All Daewoo Terminals have an office. This office is home to the
Terminal manager, Admin officer and the CRM expert. The CRM basically deals with all positive and
negative cases related to the customers present at the Daewoo Terminal. The feedback forms available in
the buses are to be reported back to this officer’s desk, which then starts the job of analyzing them and
finding out the positives and features that the customers liked the most. After this comes the task of
filtering out complaints and taking appropriate steps to eradicate them.

Major Fault in the CRM Concept


Whereas Daewoo has mostly been able to apply the CRM concept successfully, they have been missing a
very important part. This part is the establishment of a working IS (Information System). No matter how
frequent a customer one is. You have to fill in the details again for every booking you make. The
information for every customer should be saved and when a call is made from the same number, the
representative only has to confirm the details.

Such IS are working in other companies in Pakistan. Companies like Pizza hut have your information
saved with them. When you call them, they know your name, they know your address.

The addition of Daewoo Miles Card now might add the IS factor as well to Sammi Daewoo Express.

COMPANY ORIENTATION TOWARDS THE MARKETPLACE


Sammi Daewoo Express Pakistan basically follows the Product Concept.

The Product Concept means to provide the optimal quality product giving less importance to cost
reduction. In this concept the company is less bound to go hunting for customers instead customers are
attracted to the high quality product.

In the case of Sammi Daewoo Express Pakistan, the product is their services. They have established such
a high quality standard that now customers prefer using Daewoo instead of many other competitors.
Daewoo being very expensive in comparison to the others still has its customers intact.

In usual cases the managers of companies following the product concept face the fear that if another
company providing better or equal quality might hurt the company severely.

In Pakistan companies like Fasial Movers and Niazi transport are among the top names but these
companies even after providing at very low cost have not been able to dent the success of Sammi Daewoo
Express Pakistan. This is how the product concept has led Daewoo Express to success.

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SAMMI DAEWOO EXPRESS

COMPETITORS ANALYSIS
Sammi Daewoo Express presented a new dimension to the transportation business in Pakistan. It totally
revolutionized the road transport in the country. The one word to explain this big change was “Luxury
“.The company claimed and claims to be the leaders in using the world’s most luxurious buses. Before the
advent of Daewoo Express in Pakistan, public road transport was only related to lower middle social class
of people. The people belonging to the upper tiers of the society could never imagine using public buses
for long distance travelling. They would use their personal cars, hire taxis or prefer paying the extra buck
to use air transport.

Daewoo has changed the concept. It gave birth to other companies also in the race to provide quality
transport service. On the top of the list is Faisal Movers. Other companies such as Niazi coaches were no
longer a match. Sammi Daewoo Express is expensive when compared to all its competitors in the road
transport business.

CUSTOMER PERCEIVED VALUE (CPV)


A common question which pops up in the minds of many of us is that either Daewoo will be able to
sustain its customers or will it finally lose due to the cost difference. This brings forth a new concept. This
is the concept of CPV (Customer Perceived Value). Every customer has a satisfaction level and this level
is what all companies strive to attain. Very similar is the concept of CPV. The Customer Perceived Value
is the analysis of the benefits and the costs of a product in comparison to the other available options.

In the case of Sammi Daewoo Express, the company has been successful in establishing a positive CPV.
Customers prefer using Daewoo Express even if it’s expensive than the others because the benefits of
travelling with Daewoo outweigh the extra cost.

INTERNAL MARKETING
Sammi Daewoo Express also uses the concept of Internal Marketing to strengthen its brand image. The
employees are treated well and trained. Such employees are valuable assets to any company. These
members of the organization promote the brand in a positive way. Daewoo adds a small segment in which
the company itself is advertised as a part of the Visual Entertainment. Lunch Boxes and Headphones are
branded with the company name.

STRENGTH
The major strength of Sammi Daewoo Express Pakistan is its effective CRM strategy and the
implementation of the product concept. After 15 years of existence, the company has attained the
leadership slot in the transportation business. The company has always followed the product concept. It is
about providing optimal quality services. The customers are then attracted to the product themselves In
this case their services are their product. Even in this concept, the importance of customer is not less than
any other. The customers once attracted to the product have to be maintained as customers for a long term
period.

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SAMMI DAEWOO EXPRESS

Sammi Daewoo has always been very strong in building a strong Customer Relation. The core of CRM
begins with customer feedback as what the customer perceives about the product is what will form the
consumer behavior in the future as long term factor. Every Daewoo bus contains a set of feedback forms.
Any passenger can ask for the form and fill it to get their opinion and suggestions moved to the upper
tiers of the company management.

A recent and very strong addition to the CRM


department of Sammi Daewoo Express is the Daewoo
“Miles Card”. This card will provide bonus and
benefits to the frequent customers. This concept has
been implemented by organizing a customer database
system. Such an Information System which holds the
names and identities of the customers who are
Daewoo Miles cardholders and then storing the
routes, information and miles that a customer travels
with Sammi Daewoo.

Learning is psychological process which plays a very important part in deciding factors of sustaining long
term customers. Learning is basically depending on experiences which a customer develops with a certain
product. Sammi Daewoo following the product concept has been offering optimal quality services. This
develops a good image of the company and experience. A customer who will develop a good experience
for a certain product or service will be more likely to be a loyal customer.

The Miles card points which are stored also result in a free travel after a certain number of miles. The
card also offers privileges in reservations and ticketing. A CRM desk is also available in the office which
is a mandatory part of every major Daewoo Terminal. An online CRM desk is also available on the
website of the company. www.daewoo.com.pk. The following are the parts of the “Contact us” part.

OPERATION & PLANNING operations@daewoo.com.pk

CARGO SERVICES cargo@daewoo.com.pk

COMPLAINTS & SUGGESTIONS ccell@daewoo.com.pk

MARKETING & SERVICES marketing@daewoo.com.pk

INFORMATION & COORDINATION info@daewoo.com.pk

JOBS & CAREERS jobs@daewoo.com.pk

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SAMMI DAEWOO EXPRESS

APPENDIX

Rate List of Sammi Daewoo Express Bus Service

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Route and Destinations of Sammi Daewoo Bus Service

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Cargo Rates

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Sammi Daewoo Express Miles Card Form

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