ASSIGNMENT # 2

FINANCIAL ACCOUNTING (8501) MBA (BANKING & FINANCE) SEMESTER : AUTUMN 2011

SUBMITTED BY ASIF IQBAL Roll no. AM 572794

Department of Business Administration Allama Iqbal Open University Islamabad

EXECUTIVE SUMMERY Pakistan Accumulators (Pvt) Limited (PAL) has more than 18 years experience in the battery industry. PAL is an ISO 9001 & ISO 14001 certified company that concentrates in various types of batteries, UPS and battery related products with the brand name of "VOLTA "&" OSAKA". The primary purpose of this study is to fulfillment of the requirements for the Assignment of MBA .For this connection each student of this particular course is required to undertake research based assignment in a relevant organization selected by university, for a preparation. Pakistan Accumulators (Pvt.) Ltd. aims at continuous improvement through skills and modernization of its products to the entire satisfaction of its customers requirements and expectations. The production capacity of this industry is approximately 2.70 lacs per month. Pal has an excellent goodwill in the market and in stock exchange. A market share of 58%-60% proves to be a demanding strength of the pakistan accumulators (pvt) limited There are 150 battery dealers in multan region, which is a good strength of the company

Table of Contents CHAPTER 1

1.0 Introduction of Pakistan Accumlators (pvt) Limited 1.1 Introduction 1.2 Vision statement 1.3 Core values 1.4 Tag line 1.5 Goals
CHAPTER 2

2.0 Business Operations 2.1 Organization Structure chart of PAL 2.2 Trading production of PAL 2.2.1 Goods 2.2.2 Stock 2.2.3 purchases 2.2.4 Carriage inwards 2.2.5 Sales
2.3 chart of Comparison of steps involved in calculating

Profit & loss of service companies and the trading companies 2.4 The purchase function 2.4.1 The purchase function of PAL 2.4.2 Accounting for purchases 2.4.2.1 Periodic method

2.4.2.2 Perpetual method 2.4.3 Credit terms 2.4.4 Cash discount 2.4.5 Trade discount 2.4.6 Carriage costs 2.4.7 Return outwards 2.4.8 Net method 2.5 Accounting for stock of cost of goods sold 2.6 Perpetual method 2.6.1 Accounting for sales 2.6.2 Treatement of discount received and discount allowed 2.6.3 Worksheet

CHAPTER 3

3.0 Departmental Accounts of PAL 3.1 Departmental trading & Profit & loss Account 3.2 Marketing Strategy 3.2.1 Marketing mix 3.2.2 MF batteries 3.2.3 Local products 3.2.4 Export products 3.2.5 Price 3.2.6 Place

3.2.7 Promotion 3.3 Competitive Strategy 3.3.1 Market share

CHAPTER 4

4.0 SWOT Analysis 4.1 Strength 4.1.1 Goodwill 4.1.2 Market share 4.1.3 Delivery through dealer 4.1.4 After sale services 4.1.5 Availability of products 4.1.6 Network of dealers 4.1.7 Diversification 4.2 Weakness 4.2.1 Job strategicness 4.2.2 Long claim period 4.2.3 Non specialized people at front desks 4.3 Opportunities 4.3.1 E-commerce 4.4 Threats 4.4.1 Political instability 4.4.2 Strong local competition

4.5 Recommendations 4.6 References

Chapter 1: INTRODUCTION OF PAKISTAN ACCUMULATORS (PVT) LIMITED

1.1- INTRODUCTION Pakistan Accumulators (Pvt) Limited (PAL) has more than 18 years experience in the battery industry. PAL is an ISO 9001 & ISO 14001 certified company that concentrates in various types of batteries, UPS and battery related products with the brand name of "VOLTA "&" OSAKA". Initially it was manufactured under Technical support of Chloride Industrial Batteries Limited, a subsidiary of Hawker Batteries UK. Hawker Batteries is a world leader in battery manufacturing having numerous factories all over the world.

Our products are sold worldwide for a broad range of electronic and industrial applications, where cost effective battery power is required. Major export countries are India, Bangladesh, Afghanistan, Saudi Arabia, Lebanon, Kuwait, Singapore, Dubai, Sudan, Madagascar, Nepal, Mauritius, Jordan and other West African Countries. Our access is global because of our potential to produce customized products for export to valuable customers in foreign countries. Today PAL s brand have established a reputation for high performance in power and durability in domestic as well as international market.

Our product range includes 12 volts JIS (Japan International Standard) batteries ranging from 32 AH to 200AH and DIN (European Standard) batteries from 44AH to 92 AH.

It is the largest battery-manufacturing unit in Pakistan with more than 700 employees. We have Head Office in Islamabad and Regional Offices across the country to fulfill the genuine needs of ultimate customers.

We are constantly developing new products to keep pace with industrys rapidly changing needs. The continuous improvement of our engineering processes allows us to develop products with better value and performance. The capability to provide our customers with reliable and economical products is the cornerstone of our business.

Pakistan Accumulators (Pvt) Limited (PAL) takes pride in introducing new and improved range of products and product applications. Our Factory is situated on 6-Acre land in industrial Estate Hatter District Haripur (N.W.F.P). It was established in 1993 with the prime object of producing quality batteries with the help of latest manufacturing techniques available in the international battery market.

Our technical department is staffed by well trained and qualified professionals, who are available for technical advice and troubleshooting all the times. Helping you select the right battery for your particular application is of great concern to us. Our plan and machinery has been imported from world renowned companies i.e Wirtz-USA, Sovema Italy, Jungfer Austria, Mac USA Accurate Product Denmark, Jih Hsing Taiwan, Kawaguchi Japan, Bitrode USA, AGA Sweden, Digatron Germany, Beardsley & Piper USA, Chentech Taiwan and Zamil Steal Saudi Arabia.

We feel pleasure to introduce ourselves as the leading manufacturer & exporter of Automotive and UPS Batteries in Pakistan.

Due to our superior quality, competitive prices & minimum delivery period we are able to cater markets of different countries like Afghanistan, Nepal, Sri Lanka, Mauritius, Madagascar, Sudan, Lebanon, Jordan, Kuwait, Dubai, Saudi Arabia, India, Iraq & Libya.

We are awarded three times Export Merit Trophy by the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) for the year 2004-05 (Exports value $3.20 Million US Dollars)

2005-06 (Exports value $4.20 Million US Dollars) & 2006-07 (Exports value $5.40 Million US Dollars). In the year 2007-08 exports worth $ 9.35 Million US Dollars.

Pakistan Accumulators Pvt Ltd (PAL) is the leading manufacturer and exporter in Pakistan for Automotive and Inverter Dry Charged Batteries. PAL established since 1989 (in Islamabad) and the factory was setup in 1993 (Hattar, NWFP). We have 08 regional offices throughout the country and staff of around 600 employees. PAL is engaged in the manufacturing of batteries under JIS standards ranging from 34AH to 200AH and DIN standards ranges from 44AH to 92AH.

We are quality conscious and provide best performance batteries; we know if our product satisfies you, we will receive repeat orders & more business from your side. It is due this policy we are receiving repeat orders from our International Buyers.

PAL has the most sophisticated laboratory equipped with the latest instruments and devices to test raw materials and the manufacturing process at each stage up to the finished form to ensure high quality.

We like to extend our business relations with you & will highly appreciate to have business opportunity to fulfill your requirement satisfactorily.

We shall be glad to respond to your inquiry & assure you of our fullest support and best attention.

1.2- VISION STATEMENT To be largest manufacture of quality products with advanced technology to ensure adequate return to stake holder 1.3- CORE VALUES

 Integrity Honesty Commitment Determination Accountability Environment friendly

1.4- TAG LINE

CUSTOMERS TRUST IS OUR FAITH

1.5- GOALS

Establish dealers network all over Pakistan to ensure the availability of their
products.

To completely satisfy the customers Ensure customer satisfaction by providing quality products at competitive prices
with the warranty coverage and ensuring after sale service.

Constantly endeavor to be market leader in terms of market share and

technology pace-setters in area of operations and to continuously improve efficiency and competitive strength.

By continuously improving performance, aim to generate earnings sufficient to ensure a secure future for the company and to produce and increase market share. To enhance creativity and job satisfaction, provide employees opportunity for personal development

CHAPTER NO. 2 BUSINESS OPREATION 2.1- Organizational structure

OF

PAKISTAN ACCUMULATOR PVT. LIMITED

Chief Executive officer

GM HR

General Manager Factory DGM Claim

Chief Finance Officer

General Manager Sales &marketing

Audit Manager

Manager HR

DGMF

DGM Sales &marketing

Audit Officer

Claim Officer

Manager Accounts

RSM

Assistant Manager Accounts

DRM

Accounts Executive

ASM

ASI 2.2 TRADING PRODUCTS OF PAKISTAN ACCUMULATORS PVT LTD (PAL) Officer

Accounts

The Pakistan Accumulators Pvt Ltd (PAL) form a significant part of any economy of Pakistan. The two other main forms of economic activities in any economy are trading and manufacturing activities. In the development economies, manufacturing organizations are the major contributors towards GNP. In developing countries, however, agriculture and trading makes the major part of economic activity. Pakistan Accumulators Pvt Ltd (PAL) sells goods substantially in the same physical form in which it acquires them. The basic accounting principles explained for PAL remain applicable to the trading organizations. It, however, requires certain additional accounts and procedures to record purchase and sale of goods. It further requires calculating the cost of the unsold stock, which involves certain conceptual issues. The cost of unsold stock differs under different assumptions. The issue basically arises due to price fluctuations. Before getting to the accounting procedures, the following terms used in the accounting of trading organizations need to be understood: 2.2.1 GOODS It means the trading commodity, i. e. the items purchased for resale .For example, for a cloth merchant, cloth is goods; for a general store, grocery is goods. 2.2.2 STOCK The goods held for sale at any particular point of time are called stock as at that time. The stock at the beginning of the year is called opening stock and the unsold stock at the year-end is called closing stock. 2.2.3 PURCHASES When goods are purchased, an accounting head purchases is debited. If some asset other than goods is purchased it is not termed as purchases; rather, a separate accounting head for that asset is opened. For example, if furniture is purchased for use, furniture & fixture account will be debited. 2.2.4 CARRIAGE-INWARDS The cost of purchases includes all essential expenses to bring an item to a saleable position. The transportation cost is the most significant expense and is the part of the cost of purchases. However, a separate account is opened for transportation cost called carriage-inwards. While calculating cost of goods sold it is added to the purchase price.

2.2.5 SALES When goods are sold an accounting head sales is credited. If an asset other than goods is sold, it is not termed as sales

2.3 Comparison of steps involved in calculating profit & loss of service companies and the trading companies

SERVICE ORGANIZATION S SERVICE REVENUE

TRADING ORGANIZATION SALES REVENUE (MINUS)

(MINUS) EXPENSES TRADING (EQUALS) PROFIT BEFORE TAX before tax (MINUS) TAX (EQUALS) ACCOUNT GROSS PROFIT P&L A/C (MINUS) OPERATING EXPENSES COST OF GOODS SOLD (EQUALS)

(EQUALS)

NET PROFIT

PROFIT BEFORE TAX P&L A/C (MINUS) TAX

(EQUALS) NET PROFIT

2.4 THE PURCHASE FUCTION The purchase can be made on cash or credit. Accounting to the accounting principle, purchases are to be recorded when the title of ownership is transferred from the seller to the purchaser. Like any transaction, the purchases should be supported by a document. If purchases are on cash, they may be supported by an evidence of paid cheque , a cash receipt from the supplier or a cash payment supplier . In fact, the supplier sends a sales invoice which acts as purchase document for purchases. In Pakistan Accumulators (Pvt) Limited (PAL) there is a separate purchase department. Each purchase is initiated on the demand of the sales department or the stores department. When the stock on the shelf touches a certain minimum level, a requisition is sent by the stores department to purchase department. The purchase department places an order with the supplier who supplies the goods according to the specifications of the purchase order.

STORES/SALES DEPARTMENT REQUISITION

PURCHASES DEPARTMENT

SHIPMENT OF GOODS SALES INVOICE RECEIPT SLIP

SUPPLIER 2.4.1 THE PURCHASE FUNCTION OF PAKISTAN ACCUMULATORS (Pvt) LIMITED (PAL)

The Pakistan Accumulators (Pvt) Limited (PAL) store receives the goods and issues a certificate of receipt. The entire purchase process involves time and requires a continuous vigilance on the part of the sales department and the stores department. Just imagine that how many items would be there in the stock of trading department. A minimum stock of each part is to be kept and order placed with the supplier in time so that the department is never out of stock for any item. Large departmental stores like the utility stores have a very efficient stock management system. A delayed purchase results in an opportunity cost of lost sales. In the developed countries, the task of indicating the level of stock on the shelf and placing the order with the supplier has been taken over by the computers. When a sale is entered in the computer at the sales counter it automatically updates the stock record. 2.4.2 ACCOUNTING FOR PURCHASES There are two methods for accounting of purchases and stock: i. ii. The periodic method Perpetual method When goods are purchased, purchases account is debited and the mode of payment credited under periodic method which is commonly used. The act of purchase involves negotiation of price, credit tend shipping terms. An explanation of following terms is essential for understanding accounting for purchase: 2.4.1 CREDIT TERMS: When the goods are purchased or sold on credit the credit terms are to be specified. The credit terms specify the cash discount rate, discount period and maximum credit period if discount is not availed. The term e.g, 2/10 has two components; the numerator describes the discount rate and the denominator is the discount period. If payment is made within 10 days the purchaser will be entitled to 2% discount. The term n/30, means that net amount is to be paid in maximum of 30 days. 2.4.2 CASH DISCOUNT A discount is allowed to customers to encourage them to pay their accounts earlier than the normal credit period. It is a deduction from the invoice price of goods if payment is made in the specified discount period. The delayed payments by the customers may require the business to get loan from the bank on which interest is to be paid. The finance manager has to make a comparison between the cost of funds needed and the discount to be allowed or received.

If trading organization makes payment within the discount period, following is the entry to record the payment:

Creditors a/c Discount received Bank a/c

xxx xxx xxx

If it was decided not to avail the discount, the payment will be made on 30th day, the entry would be as follows: Creditors a/c Bank a/c xxx xxx

2.4.3 TRADE DISCOUNT: The trade discount is part of price negotiation and is not reflected anywhere in the accounts. The purchases are recorded at net of trade discount amount. The trade discount is generally allowed to regular customers in the same trade. Bulk discount is provided if a customer purchases large quantity at a time. This discount is also not reflected in the accounts. 2.4.4 CARRIAGE COSTS: The purchase or sale agreements specify as to who is going to bear the transportation costs. The freight or carriage terms are expressed as FOBterms.FOB stand for free on board and it determines when the legal title of that the responsibility of seller is only up to delivering the goods to the careeier, i.e., airport, seaport,truvkstand ,etc. Once delivered at shipping point, the title of destination means that the seller has to deliver the goods at the shipping point. The entry would be as follows: Carriage inward Cash a/c xxx xxx

2.4.5 RETURN OUTWARDS Sometimes a part of the goods supplied are not according to the specifications of the purchase order. They may be damaged or substandard. Such goods are returned to the supplier or a reduction in price negotiated. I both cases, the liability, i.e. amounts payable to the creditor, is decreased. Return outwards are also purchase returns and allowances. For return outwards, the creditors account is debited and return outwards account is credited. The journal entry for return outwards is:

Creditors a/c Return outwards a/c

xxx xxx

2.4.6 NET METHOD: There is an alternate method to record purchases, which is called net method. The method assumes that purchases may be recorded at cash price, i.e. net of discount. The emphasis is that cash discount may be availed in all cases. Therefore, instead of discount received, discount lost is reported. If the payment is made with on discount period the entry will be as follows: Capital a/c Bank a/c xxx xxx

The discount lost is reported as a financial expense along with the interest or as an administrative expense.

2.5ACCOUNTING FOR STOCK AND COST OF GOODS SOLD In trading organizations, the revenue through sale of goods. The revenue is then matched with the cost of goods sold. The difference is gross profit. The unsold goods at the end of the period are called closing stock and reported as current asset in the balance sheet. The cost of goods sold can be calculated under two different methods: I. Periodic system II. Perpetual system

2.6 PERPETUAL SYSTEM The Pakistan Accumulators (Pvt) Limited (PAL) dealing in items of high unit cost and selling a limited number of units may like to maintain a continuous record of stock sold and on-hand. Under this system, the goods purchased are recorded in the stock account. The return inwards are accompanied by a reversing entry for cost of goods sold. The cost of goods sold is recorded at the time of sale.

2.6.1 THE ACCOUNTING FOR SALES

Pakistan Accumulators (Pvt) Limited (PAL) may sell on credit or cash or use both modes. Sales revenue, in accordance with recognition principle, is earned when the title of ownership of goods is transferred from the seller to the buyer. Every sales transaction should be supported by sales invoice. The entry to record the transaction is: Company abc a/c SALES A/C xxx
XXX

Return Inwards A customer may return goods if these are defective or not according to the specification order by him. Sometimes the goods may not be returned rather a discount in price known as sales allowance may be asked for. Once the returned goods or allowance is agreed upon, a credit memorandum like debit memorandum is issued to the customer. The entry is shown below: Return inwards a/c Company abc a/c ( company returned defective goods for the sale) 2.6.2 TREATMENT OF DISCOUNT RECEIVED & DISCOUNT ALLOWED Discount received and discount allowed may be treated as contra to purchases and sales respectively. In such case, discount received is subtracted from purchases and discount allowed from sales. The purchase discount and the sales discount are treated as reduction in purchase cost and sales respectively. The net of discounts is taken in profit and loss account. In this case discounts are treated as part of financial activity rather than trading activity. 2.6.3 WORKSHEET The worksheet of a merchandising organization differs from that of a service organization only in items of trading account. The basic steps remain the same. The year-end adjustments are made in the same way. However, care should be taken in case adjustments required for opening & closing stock. The stock figures can be transferred to trading account through adjusting or closing entries. The treatment of stock may be noted in the worksheet. The opening stock is taken to the debit of trading a/c while the closing stock is taken in the credit side of the account. The closing stock is also taken on the debit side of the balance sheet columns. Further note that the opening stock, carriage-in and purchases are in debit column whereas closing stock and return outwards are in credit columns. It conforms to the formula of cost of goods sold, i.e; xxx xxx

[Opening stock + (purchases + carriage in return out)- closing stock ]

The formula can be rearranged as: (Opening stock + purchases + carriage in)- (return out + closing stock)

CHAPTER NO. 3 DEPARTMENTAL ACCOUNTS

3.1 DEPARTMENTAL ACCOUNTS OF Pakistan Accumulators (Pvt) Limited (PAL) The Pakistan Accumulators (Pvt) Limited (PAL), trading business generally has more than one department. In order to evaluate the performance of different departments separately, they prepare separate trading and profit and loss account for each department.

Departmental accounts provide information about the contribution that each department makes to the overall profit of a business. On the basis of this information the management makes decision as to which department needs improvement and if needed may face closure. In order to improve the performance a departmental manger may be provided incentive in the form of commission based upon the profit he earns. If the commission is calculated as a percentage of the profit after charging the commission, the calculation is as follows:

Profit before commission X percentage of commission 100 + percentage of commission 3.2 DEPARTMENTAL TRADING & PROFIT & LOSS ACCOUNT Each department has to keep separate record for its sales, purchases and expenses. Unless this is done, it is not possible to prepare separate accounts. Separate books may be kept for each department in the central account section or in each department. Some of the expenses are direct, i.e. they can be traced and assigned to a particular department, e.g. the salaries and depreciation. However, most of the expenses are common and needs to be

apportioned between departments on some appropriate basis. Such expenses include rent, insurance, maintenance, etc. Examples of bases of apportionment are: Department wages, salaries by Actual payroll costs for each department obtained

analysis of the payroll. Administrative salaries department or on On the basis of number of employees in each

respective sales volume, i.e. turnover. Rent, rates, heating, lighting, property insurance Depreciation Insurance of fixed assets other than property On cost of fixed assets employed by each department. on replacement values of assets in each department on relative floor areas of the departments.

3.3 - M ARKETING STRATEGY

3.3.1- MARKETING MIX 3.3.1.1- MF Batteries Pakistan Accumulators (Pvt) Limited (PAL) proudly presents maintenance free batteries for our clients. Based on international standards these batteries have no hassle of charging or water. Our professionals are well trained and qualified for technical advice and troubleshooting at any time. 3.3.1.2- Local products The Pakistan Accumulators Pvt. Limited produces 12 volt batteries in different size and plates. Local products contain so many types which should be used in different vehicles and our product range includes 12 volts JIS (Japan International Standard) batteries ranging from 32 AH to 200AH and DIN (European Standard) batteries from 44AH to 92 AH.and also produce ups, MF batteries. The size of plates includes 9 to 31 plates so it is the huge manufacturing company.

3.3.1.3- Export Products The Pakistan Accumulators Pvt. Limited also exports its product. Our products are sold worldwide for a broad range of electronic and industrial applications, where cost effective battery power is required. Major export countries are India, Bangladesh, Afghanistan, Saudi Arabia, Lebanon, Kuwait, Singapore, Dubai, Sudan, Madagascar, Nepal, Mauritius, Jordan and other West African Countries. 3.3.1.4- Price The term pricing refers to: The key to pricing is to Build value into the product and price it accordingly. Pakistan Accumulators (Pvt) Limited has to face the ever-increasing competition in the battery industry. As the number of competitors are increasing day by day but still Pakistan Accumulators (Pvt) Limited enjoys a reasonable market share with the facts of providing excellent services amongst the competitors. PAL provides different products and services to its customers, which have been discussed in previous section. Pricing of product is set through cost and profit 3.3.1.5- Place Pricing refers to the following methodologies taken by an organization: Various activities the company undertakes to make the product accessible and available to the target customers Also, Its can be viewed as set of interdependent organization involved in the process of making a product or service available for use or consumption Place refers to the means by which our customer acquires your product. This includes the actual place it is purchased (the shop, the telephone, the web page, the warehouse) as well as the actual route of distribution. Simply place refers how you will sell your product to your customers.

The objective of Pakistan Accumulators Pvt. Ltd. has always been to expand its regional offices network to meet clients needs. Company is well positioned and geographically poised, to cater for increased business demands, from its existing potential customers Pakistan Accumulators (Pvt) Limited has 08 Regional Offices, spread all over Pakistan covering major business centers and principle cities. Head Office of Pakistan Accumulators (Pvt) Limited is located in Islamabad Volta House, House # 2, Street # 63, Sector F-8/4, Islamabad, Pakistan. 3.3.1.6- Promotion Promotion is a term that refers to the following statement: Steps taken by the company to enhance its sales by focusing the target markets Thus we can say that promotion can be categorized into different categories based on the above mentioned marketing perspective definition of promotion. So advertisement, sales force, billboards etc are major sources through which the promotion scheme can be implemented. This is an age of competition. Numerous organizations are providing batteries to the customer. These days every one is facing pressure of competitors. In this world of growing competition, the only way to survive and grow, for an organization, in the market place is the proper marketing and promotion of its products. Same is the case with Battery Industry. There is large number of foreign and local industries working in the country and it has been noticed that they are emphasizing much on their marketing strategies. In this scenario, the key for a Pakistan Accumulators (Pvt) Limited to succeed and attract its customers is adequate promotion of its products &services. Sales Promotion Advertisement Direct Marketing

 Public Relations The most prominent and important way to attract a large number of customers is the advertisement of company and its products/services. Pakistan Accumulators (Pvt) Limited has adopted different approaches for the accomplishment of this purpose. For example, formation of Maintenance Free Battery is a major step taken by PAL. It not only provides a source of recreation to the people but it serves as a major source of marketing for the Organization. However, one drawback or shortcoming is that, Pakistan Accumulators (Pvt) Limited has formalized a lot of Battery Types for its customers, even more than other other competitor, but any advertisement on electronic media has not been seen. Along with the advertisement, the company is providing personal services to its clients with maximum security as other competitor provide. PAL also encourages the public relation policy of marketing. Some brochures and promotional material has been printed but it is distributed mainly through the Dealers who visit the Regional Office for their day-to-day business or through the customers who come to get information about new schemes launched by the company. 3.4- COMPETITIVE STRATEGY Pakistan Accumulators (Pvt) Limited offer to the consumers both in terms of quality and price according to competition. They are different as compare to their competitors by using a different competitive strategy. It can be described in a few steps as following Pakistan Accumulators (Pvt) Limited have its own growing and processing facilities. Pakistan Accumulators (Pvt) limited also produces the brands of Volta /Osaka from its production department. Pakistan Accumulators (Pvt) Limited tried to adopt innovative policy, for last few years the Company introduces Maintenance Free Battery with the tag line CUSTOMERS TRUST IS OUR FAITH

 Pakistan Accumulators (Pvt) Limited management never compromise on the quality. Even if the company got any complaint, then immediately replace it. For the testing of products quality the lab has been introduced. Lab of Quality Control Department includes: Main Lab All tests of incoming products are carried out in this lab e.g. Moisture analysis, viscosity, determination. Particle size, boiler waters test, condensed oil checking of canned & R&D procedure. Line Control Lab Temperatures, Acidity of the products are tested in this lab. This is the main lab of Pakistan Accumulators pvt. Limited. If this lab not working properly than the whole organization will suffer. 3.4.1- Market Share Pakistan Accumulators (Pvt) Limited has the following market shares as compare to its competitors. Pakistan Accumulators (Pvt) Limited 30% Exide 40% AGS 20% Others 10%

CHAPTER NO. 4 SWOT ANALYSIS

4.1- SWOT ANALYSIS The SWOT analysis consists of analyzing the organizational strength and weaknesses, and its opportunities and threats which are related to external environment. It helps to identify a strategic niche that the organization might exploit. Here is a swot analysis of Pakistan Accumulators (pvt) limited 4.1- Strength Pakistan accumulators (pvt) limited is strong organization as for as its competitor is concerned. Basically the activities the firm does well or the resources it has or it controls are referred to as its strength. Following are the strengths of pal 4.1.1- G o o d W i l l / W e l l E s t a b l i s h e d I m a g e Pal has an excellent goodwill in the market and in stock exchange. It image is very positive as compared to its competitors. It gave the maximum value to their customers. 4.1. 2 - M a r k e t S h a r e A market share of 58%-60% proves to be a demanding strength of the Pakistan accumulators (pvt) limited. This high market share shows its better performance and also shows the PLC in growth stage. 4.1. 3 - D e l i v e r y t h r o u g h D e a l e r s Pal has strength over their competitors. It delivers batteries through dealers. The dealers should increase its sale using many ways although these are positive or negative for attaining their targets.

4.1. 4 - A f t e r S a l e S e r v i c e s

A good package of after sales service by Pakistan accumulators (pvt) limited is another strength on its competitor and provide the customer satisfaction. And also the company introduce after sale service department that is a good step of company. 4.1. 5 - A v a i l a b i l i t y o f P r o d u c t s Pakistan accumulators (pvt) limited products are readily available all over Pakistan that is another strength. In season only the Volta / Osaka products are available in the market and they capture many customers of its competitor. 4.1. 6 - N e t w o r k o f D e a l e r s There are 150 battery dealers in Multan region, which is a good strength of the company and due to the good performance of our dealers we become able to sell 8000 batteries per month in Multan region. 4.1. 7 - D i v e r s i f i c a t i o n Pakistan accumulators (pvt) limited has diversified its business by producing generators, ups and batteries and now working on the automobiles business as well. 4.2- Weaknesses Weakness are the activities the firm does not do well or the resources it does not fully utilized or the resources it needs but does not have. Though pakistan accumulators (pvt) limited in a successful organization but it has following weaknesses. 4.2.1- Job Staticness There is lack of job rotation in pal which has created the staticness and reduces the productivity and efficiency of the employees. But the other companies give job staticness to their employee like AGS and EXIDE are two major competitors in Pakistan give job security to their employees.

4.2.2- Long Claim Period

As compare to its competitors c l a i m time period of batteries delivery is long. They take only short period of claim but Pakistan accumulators take long claim period that is negative attitude towards attracting customers. 4.2.3- Non Specialized People at Front Desks The marketing department has good workers but they are not good at public dealing and less interaction with the customers. The management is also not specialized in its work they take a long period for decision making but in current situation it is not suitable for success of business. 4.3- Opportunities Opportunities are positive external environmental factors. They have following opportunities for Pakistan accumulators (pvt) limited. Due to changing needs of country, pal has the opportunity to make power machine and diversifying its business. 4.3. 1 - E - c o m m e r c e Pal can established b2b e-commerce application with its dealers. This will help them to make true management information system If the crop yield is high and the farmers are going to get good price for it so this wills increase the demand of the batteries. 4.4- Threats Threats are negative external environmental factors. The external factors, which can be prove negative for Pakistan accumulators (pvt) limited are as following: 4.4. 1 - P o l i t i c a l i n s t a b i l i t y The major threat which is faced by pal is the instable political environment. A policy being carried out by one government is changed by next coming up government. Every government shows biasness and make policies by considering their favorites. 4.4. 2 - S t r o n g l o c a l c o m p e t i t i o n

Pal has faced a very strong competition not only in batteries but in agriculture implements as well. In batteries the major competitor is Exide, ags, phoenix, millet batteries limited. 4.5 Recommendations Production department should inform the Supervisor about the weekly production program.Then supervisor should tell the workers about this program. I have analyzed that supervisor told the workers about the production program on the spot. It can affect the production process and also employees efficiency. For example, if raw material were not available then production cannot start but, if supervisor was informed some day ago the supervisor can make all the necessary arrangement for the production process. In the finished goods store the company should store the products types wise. Due to types the loaders can easily load the products in the vehicles. It can save the workers time and normal or abnormal loss of goods Recommendations Planning & Store Department should told about their planning program to the Production Department. these departments. I have analyzed there is lack of co-ordination between

Planning Department told about their program on the spot.

Sometimes workers or supervisors were not present.

4.6 REFERENCES
Factory 1.Plot # 20, 21, 22 Phases III, Industrial Estate, Hattar, Distt Haripur N.W.F.P, Pakistan 2.http://www.batterycouncil.org/LeadAcidBatteries/HowaBatteryisMade/tabid/107/ Default.aspx 3, Head Office Volta House, House # 2, Street # 63, Sector F-8/4, Islamabad, Pakistan. 4. http://www.volta.com.pk/product.php?hdnTypeID=1

HRM Department

Talk with AM HR, and different People during internship http://www.ibwc.state.gov/Organization/Administration/Acquisitions.html http://www.ibwc.state.gov/Organization/Administration/budget.html