1 Daewoo
1 Daewoo
1 Daewoo
INTERNSHIP REPORT
DAEWOO EXPRESS LIMMITED
A REPORT SUBMITTED TO THE DEPARTMENT OF ECONOMICS AND BUSINESS
ADMINISTRATION UNIVERSITY OF EDUCATION, TOWNSHIP CAMPUS,
LAHORE IN THE PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
DEGREE OF BACHELORS IN BUSINESS ADMINISTRATION (4 YEARS)
SUBMITTED BY
MUHAMMAD ABDULLAH AFZAL
15-BBA (Hons.)1069 (E)
2015-2019
17 SEP 2019
[1]
UNIVERSITY OF EDUCATION
TOWNSHIP CAMPUS, LAHORE
DEPARTMENT OF ECONOMICS AND BUSINESS
ADMINISTRATION
LETTER OF UNDERTAKING
This internship report submitted by MUHAMMAD ABDULLAH AFZAL S/O MUHAMMAD
AFZAL ROLL NO 15-BBA (Hons.)1069 (E) for the partial fulfillment of the requirements for
the degree of
BBA HONS
2015-2019
SPECIALIZATION IN MARKETING
PRINCIPAL __________________
[2]
[3]
Acknowledgement
Every word of praise and gratitude goes to Allah Almighty whose blessings and
bounties are innumerable to realize and count, and due respect to Holy Prophet
(peace be upon Him) who enable us to recognize our creator and whose teachings
are a role model for us to follow in the time of darkness and despair.
I am obliged to all personnel of different departments in DAEWOO EXPRESS
LIMMITED
Who guided and inform me about the whole setup of DAEWOO MARKETING &
CARGO Department and particularly my Supervisors Mr. Jazib & MS. Mehwish
Zaman (Marketing Manager & Cargo Manager) for their kind assistance at every
stage of report.
I have my tried my level best to give this report a professional touch which I learned
during my career at UOE I regret for any shortcomings.
[4]
Executive Summary
The Daewoo Group was founded by Kim Woo-Jung in March 1967. He was the son of the
Provincial Governor of Daegu. He graduated from the Kyonggi High School, then finished with
an Economics Degree at Yonsei University in Seoul.
Daewoo Industrial was declared bankrupt on 1 November 1999, with debts of about US$50 billion
(equivalent to $75 billion in 2018). Prior to the Asian financial crisis, Daewoo was the second
largest conglomerate in Korea after the Hyundai Group. There were about 20 divisions under the
Daewoo Group, some of which survive today as independent companies.
Daewoo Express Ltd incorporated in Pakistan as a private limited company on December 1997
and beginning of express bus operations on April 1998. Beginning of city bus services on
November 1999 and took over by sammi corporation, Seoul, Korea on January 2004.
The Diagnostic study on Daewoo Express Bus Service is indeed an informative one. Daewoo came
into Pakistan for the construction of Motorway [M-2] Project. Then they were asked to operate
their Inter City Bus Service that was from Lahore to Islamabad. The government of Pakistan
proposed this, on November 11 1999, Daewoo started Inter City Bus Service with a fleet of initially
20 buses, which was from Railway Station Lahore to Choongi Amar Sadhoo. Then they gradually
increased their fleet and currently they are operating with 70 buses. Daewoo is facing severe
competition with Niazi Express. Other franchise companies like New Khan Metro, Premier are
also indirect competitors of Daewoo. As far as the financial situation of Daewoo is concerned, it
had to bear a large number of losses in its first two years of operations. But, it is the growth phase.
This can be judged from the fact that the percentage of net loss was greater than 20 buses, and it
reduced as the number of buses increased to 70. So we can say that Daewoo, though now not
financially sound, has a strong tendency and in the near future it will be a profitable enterprise.
Express Bus Service started working from 1998 with 40 buses and now they are at 64 and also
profitable. Daewoo operates in the kind of industry where the entry barriers are high. The reasons
being a large amount of investment, equipment and network are required. The major weakness in
the Daewoo Express and City Bus Services is that their network is not extensive enough to
accommodate most areas. Even Daewoo City Buses are too much crowded. An increase in the
[5]
number of routes and buses especially in the Daewoo City Bus Service Department is the best way
of tackling this situation.
Daewoo Pakistan Express Bus Service has been a vital contributor to the people affected by the
earthquake in 2005. Daewoo Pakistan served with its best effective efforts with the assistance of a
team of 27 Korean Specialist Surgeons and Doctors, in the affected regions. Today Daewoo
occupies a leading position in the transport industry. The company’s success may be attributed to
its…
Marketing Expertise
Funding ability
Network of all branches
Cargo team
Technical ability based on the experience of Daewoo Express.
As far as the financial situation of Daewoo is concerned, it had to bear a large number of losses in
its first two years of operations. But, it is the growth phase. This can be judged from the fact that
the percentage of net loss was greater than 20 buses, and it reduced as the number of buses
increased to 70. So we can say that Daewoo, though now not financially sound, has a strong
tendency and in the near future it will be a profitable enterprise. Express Bus Service started
working from 1998 with 40 buses and now they are at 64 and also profitable. Daewoo operates in
the kind of industry where the entry barriers are high. The reasons being a large amount of
investment, equipment and network are required.
[6]
Table of Contents
Introduction of Transportation Industry ................................................................................................ 11
Overview of the Daewoo Express .......................................................................................................... 12
Early History: ..................................................................................................................................... 12
Slogan: .............................................................................................................................................. 14
Vision Statement: .............................................................................................................................. 14
Mission Statement:............................................................................................................................ 14
Daewoo in Pakistan: .......................................................................................................................... 15
Starting in Pakistan: ........................................................................................................................... 15
Terms & Conditions: .......................................................................................................................... 16
Competitors of Daewoo Express: ....................................................................................................... 17
Business volume: ............................................................................................................................... 18
Product line: ...................................................................................................................................... 19
Express Bus Service: ....................................................................................................................... 19
Major routes .................................................................................................................................. 19
City Bus Service:............................................................................................................................. 20
DAEWOO EXPRESS: ........................................................................................................................ 20
DAEWOO LAHORE FEEDER ROUTE: ................................................................................................ 20
DAEWOO MULTAN METRO: .................................................................................................... 21
DAEWOO CAB: ............................................................................................................................... 21
DAEWOO FastEX: ........................................................................................................................... 21
DAEWOO GLOBEX .......................................................................................................................... 22
DAEWOO COD: .............................................................................................................................. 22
DAEWOO GREETINGS: ................................................................................................................... 22
SMART CARGO:.............................................................................................................................. 22
Organizational Structure ........................................................................................................................ 23
Number of employees ....................................................................................................................... 26
Head offices of Daewoo Express: ....................................................................................................... 27
Brief Introduction of all the departments ........................................................................................... 27
a. HR Department ...................................................................................................................... 27
b. Marketing Department: ......................................................................................................... 29
c. Procurement Department: ..................................................................................................... 30
d. Cargo Department: ................................................................................................................ 31
[7]
e. Daewoo FastEX Cargo & Logistics Service: .............................................................................. 31
f. COD service in Cargo Department: ......................................................................................... 31
g. Finance Department: ............................................................................................................. 32
h. Workshop & Maintains Department: ...................................................................................... 32
i. Safety & Security .................................................................................................................... 34
j. Supply chain department ....................................................................................................... 34
I. Comments on the organizational structure ................................................................................ 35
Plan of internship program .................................................................................................................... 35
I. Introduction of the branch/ area office: ..................................................................................... 35
Training Program at Daewoo Express .................................................................................................... 36
I. Operations performed by the department ................................................................................. 36
Marketing Department .................................................................................................................. 36
Cargo Department: ........................................................................................................................ 37
II. Training Activities at Daewoo Express: ....................................................................................... 38
1 week (5th to 12th July 2019): Activities........................................................................................ 38
st
[8]
Human Resource Management of Daewoo Express ............................................................................... 50
I. Employee’s recruitment and selection ....................................................................................... 50
II. Selection Management: ............................................................................................................. 51
CATEGORY ................................................................................................................................. 52
SELECTION ................................................................................................................................. 52
III. Training & development:........................................................................................................ 52
IV. Performance management:.................................................................................................... 53
V. Compensation policy.................................................................................................................. 53
RETENTION: ............................................................................................................................... 53
Financial Analysis .................................................................................................................................. 54
I. Ratio Analysis of company report ............................................................................................... 54
II. Long Term Solvency Ratios/Leverage Ratios ............................................................................... 55
III. Macro Level Ratios ................................................................................................................. 58
IV. Profitability Ratios .................................................................................................................. 59
Critical Analysis ..................................................................................................................................... 61
Analysis of micro environment of the organization: ........................................................................... 61
Analysis of the macro environment of the organization ..................................................................... 62
Political forces: .............................................................................................................................. 62
Economic factors: .......................................................................................................................... 62
Social factors: ................................................................................................................................ 62
Technological factors: .................................................................................................................... 62
Legal factors: ................................................................................................................................. 62
Environmental factors: .................................................................................................................. 62
Cultural Factors: ............................................................................................................................ 63
Personal Factors: ........................................................................................................................... 63
Psychological Factors: .................................................................................................................... 63
Industry analysis: ............................................................................................................................... 63
Forecasting demand: ......................................................................................................................... 65
Customer analysis:............................................................................................................................. 65
Competitor analysis: .......................................................................................................................... 67
STP: ................................................................................................................................................... 67
Marketing mix strategies ................................................................................................................... 68
Components of Daewoo Group SWOT analysis ...................................................................................... 69
[9]
Structure of Daewoo Group SWOT analysis: ...................................................................................... 69
i. Daewoo Group Strength: ........................................................................................................... 69
ii. Daewoo Group Weakness .......................................................................................................... 70
iii. Daewoo Group Opportunities: ................................................................................................... 71
iv. Daewoo Group Threats: ............................................................................................................. 71
v. Limitations of Daewoo Group SWOT analysis: ............................................................................ 72
Conclusion............................................................................................................................................. 72
Recommendation .................................................................................................................................. 73
References & Sources ............................................................................................................................ 74
Annexes ................................................................................................................................................ 75
[10]
Introduction of Transportation Industry
Transport in Pakistan is extensive and varied but still in its developing stages and serving a
population of over 170 million people. Different modes of transportation such as air, rail, road,
water are used for transportation of goods and people from one place to another. Rail services in
Pakistan are provided by the state-run Pakistan Railway, under the supervision of the Ministry of
Railways. The railway network comprises 8,163 km of which 1,676 mm (5 ft. 6 in) (broad gauge)
forms 7,718 km including 293 km of electrified track. Pakistan Railways carry 65 million
passengers annually and daily operates 228 mails, express and passenger trains. Much of
Pakistan's road network (National Highway) and Railway network were built before 1947, during
the British Raj. In recent years, new National Highways have been built, with the addition of
motorways. Airports and Seaports have been built within the last 30 years.
Thousands of people travel daily through public and private transport to reach their destination
within the city and out of city. Bus service in urban areas and between cities is well established
with services run by both public and private sectors. Bus services like Daewoo Express, Kohistan,
Khan Brothers, Skyway and Niazi Bus have set up modern intercity service in Pakistan which
connects to most cities in Pakistan and runs 24 hours a day. Intercity buses tend to be more modern
and well-kept as compared to urban transport within cities which are also well established. With
its own distinctive technology and development capabilities, Daewoo international has been, for
more than three decades, a worldwide name for fine quality products. Now, with new
environmentally friendly materials, the company augmented its renown and reliability in material
for footwear, garments, car interiors components and miscellaneous goods. First in Korea to
acquire ISO 9002 and QS 9000 quality certification in its field, the company continues to expand
its global exports and develop new trade strategies. With its solid capabilities in manufacturing
technology and improvements in both process and quality, Daewoo International is steeping into
the new millennium with top competitiveness, top products, and top services.
However the fleet of buses used tends to be in horrible shape and is not air-conditioned. And
with the passage of time the fleet of these buses is becoming lesser as compared to the increasing
population of Pakistan. The people are suffering because of bad conditions of buses, rude
behavior of conductors and others, huge frights, overloading on buses, delaying of buses and
unavailability of conveyance. Pakistanis make up 2.5 percent of the world’s population, which
[11]
makes it the sixth most populous country and its population growth rate is still among the highest
in the region. It is widely acknowledged that transport has a crucial role to play in economic
development. More specifically, it has been recognized that the provision of a high quality
transport system is a necessary precondition for the full Participation of remote communities in
the benefits of national development. Business development, education and health are too much
dependent on transport. Pakistan’s major trade with China, Afghanistan, Iran and India is done
through road and rail transport. So the development of transport industry for Pakistan is
important from both aspects i.e. people transportation and trade. Tourism is the world’s third
industry from revenue point of view. Despite having an image problem, hyped particularly in
the West, and once alleged as one of the most dangerous countries in the world by the British
magazine "The Economist", tourism is still a growing industry in Pakistan because of its diverse
cultures, peoples and landscapes However, tourism is still limited because of the lack of proper
infrastructure, the worsening transport and security situation in the country.
Early History:
Beginning in 1962 the South Korean government instigated a series of five-year plans and forced
the chaebols to aim for a number of basic objectives. In common with their Far East competitors,
Hong Kong and Taiwan, South Korea's government relied on a strategy that focused attention on
the importance of exports as the method to decrease the country's balance-of-trade gap and to
strengthen domestic production. Daewoo began trading in 1967 at the start of the second five-year
plan, and benefited from government-sponsored cheap loans on borrowing for exports. The
company chose to concentrate on the labor-intensive clothing and textile industries, this would
provide relatively high profit margins while utilizing South Korea’s major asset, its large
workforce. A factory was set up at Pusan and in 1990 3.6 million shirts were made there each
month. Daewoo further contributed to the increases in South Korea's level of exports, which
averaged 38.6 percent growth per annum during this period, by producing uncomplicated light
manufacturing machines the construction of which, again, was labor intensive. The third and fourth
phases of Korea's economic recovery ran from 1973 to 1981. The country's most significant
resource, labor, was then in high demand, and as wages increased, competitors from Malaysia and
Thailand began to erode Korea's comparative advantage in labor-intensive production. The
[12]
government responded by concentrating on mechanical and electrical engineering, shipbuilding,
petrochemicals, and construction. This change in emphasis was designed to continue Korea's
export-led expansion and to provide domestic industries with parts that previously had to be
imported. A home-based defense industry was also a priority as plans were announced for the total
withdrawal of U.S. peacekeeping forces.
Daewoo moved into construction, serving the new village program and, in a farsighted move, the
rapidly growing African and Middle Eastern markets.
During this period Daewoo achieved its GTC status and received significant investment help from
the South Korean government. Subsidized loans and strict import controls aroused the anger of
competing nations, but the chaebols were in need of protectionist policies if they were to survive
this period of world recession, triggered by the oil crisis of 1973.
Government policy forced Daewoo into shipbuilding, an industry to which Hyundai and Samsung
were more suited because of their greater expertise in heavy engineering. Kim's reluctance to take
over the world's biggest dockyard, at Okpo, in 1980 was well documented, and his comment on
the Korean government indicated a growing frustration as his entrepreneurial instinct was being
stifled. "They tell you it's your duty and you have to do it even if there's no profit." Displaying
characteristic vigor and enthusiasm, however, Kim soon saw Daewoo Shipbuilding and Heavy
Machinery earn a reputation for competitively priced ships and oil rigs that were often delivered
ahead of schedule.
Daewoo Pakistan Express Bus Service (Daewoo or DPEBSL) is the first and the only company
with an advanced and organized transport system in Pakistan. It is the only transport company to
have a nationwide network with various international trade links
As 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, and
training Institutes for Drivers
Daewoo has been rendering transport facilities for more than last 15 years to the people of Pakistan
and appreciated by the masses simultaneously and highly praised by the Governments of Pakistan
and Korea for its consistent success. Daewoo Pakistan Express Bus Service renders high quality
intercity common carrier services to passengers. With the geographic approach to 60 destinations,
Daewoo provides long distance time efficient bus service to numerous cities, extending to entire
Punjab, Sindh, and Khyber Pakhtunkhwa and covering some destinations in Gilgit Baltistan
[13]
Daewoo Pakistan started City Bus Service in 1998 in Lahore, providing international standards of
local travel facilities. Cargo service of Daewoo Express Bus Service provides cheap but safe and
quick courier service as compared to other similar companies. The cargo operations have increased
multiple folds since the start of the service
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.
A timeline of the operations and beginnings of Daewoo Express Ltd:
December 1997 - Incorporated
April 1998 - Beginning of Express Bus Operations
November 1999 - Beginning of City Bus Operations
January 2004 - Took Over by Sammi Corporation, Seoul, Korea
35 cities on 43 destinations with over 200 buses.
Slogan:
Luxury, Safety, Punctuality
Vision Statement:
To be the superlative business institution in Pakistan & achieve market recognition by delighting
commuters’ with quality services as well as the range of product offerings at modern state of the
art Motorway Service Areas.
Mission Statement:
An organizational environment that fosters professionalism, motivation & quality by adopting
our core values & services.
[14]
Daewoo in Pakistan:
As Daewoo has a name all over the world due to interest in automobiles, consumer goods, financial
and securities, construction, engineering and trade sector, Daewoo is working for the last thirty
years and their motto is “from tile till ship”.
Daewoo, a top Korean company, emerged in Pakistan in 1993, when it sorts $1 billion in Lahore-
Islamabad Motorway Project which was highly political in nature. Though it discouraged in getting
more projects but with the re-election of Nawaz Sharif Government, Daewoo has come with its
renewed commitments in taking part in development related activities. In the first phase, company
would import buses from Korea and intends to invest $60 million in its transport venture which
would have 600 buses fleet in total. Company source says that it is also considering installing a
bus assembling plant to take part in the massive demand of passenger transport. The company
commenced its business on December 10, 1997 after obtaining certificate for commencement of
business from registrar of companies, Lahore. Daewoo Pakistan Motorway Services Ltd. was
incorporated as a public ltd. company on October 23, 1997. The object of the company was to
provide services on Lahore- Islamabad motorway. Daewoo Pakistan Express Bus Services Ltd.
was incorporated as a public ltd. company by shares with the object of engaging in transportation
business. Their detailed description activities are:
To plan, survey, design, finance, construct, own, operate and maintain bus services.
To carry on the business of transport of goods, mails, passengers, animals from place to
place either by air, by land or sea whether in airplanes, motor-vehicles, cars, ships or in
any manner what so ever.
To indulge in higher transportation services in all the parts of the world.
Starting in Pakistan:
In May 1999, Daewoo signed memorandum of understanding with the Government of Punjab at
Seoul, Korea to operate 1500 buses in Pakistan out of which 700 buses were proposed to be
operated in Punjab whereas 800 buses in Sind. It was also agreed that government would provide
the requested funds for this project from outstanding payment on the construction of Lahore-
Islamabad Motorway Project. Anyhow, this agreement could not be materialized and due to the
certain reasons and eventually Daewoo had to arrange funds for import of 50 buses through
financial institutions and those maintain its commitments made with the citizens of Pakistan. To
[15]
operate the city bus in Lahore, a franchise agreement was signed on August 3, 1999 between
Daewoo and Lahore Regional Transport Authority, Government of Punjab.
Terms & Conditions:
1. Confirmed booking is cancelled 15-minutes before scheduled departure time if the passenger
doesn't report at the ticketing counter for buying ticket. Late comers would be accommodated in
the same departure subject to the availability of seats.
2. Passengers having no advance booking are requested to get their names included in waiting
list and get waiting numbers. They will be accommodated on availability of seats in the order of
their waiting numbers.
3. If a passenger having advance ticketing gets it cancelled before the departure, he / she will be
charged with 30% cancellation charges.
4. If a passenger having advance ticket reports at the Terminal Office after the bus departs and
doesn't avail the next departure, his ticket will not be refunded.
5. Full ticket will be charged for children of 4 years and above.
6. Passengers are requested to check / confirm the cash balance before leaving the ticketing
counter. Company will not be responsible for any short balance claimed after leaving the counter
once.
7. For the purpose of safety and security, passengers are requested to cooperate with the staff
performing security scanning / body search at the time of boarding.
8. Passengers, who missed the bus for which they had tickets, are requested to report at the
ticketing office and avoid catching the bus by running after it or by other vehicle lest some
accident occurs. They will be accommodated in next departure subject to the availability of seats.
9. Passengers are requested to ensure the loading of their luggage (if any) in the luggage
compartment of the bus and carefully collect the luggage tags. They are strictly prohibited to put
any cash, jewelry, prize bonds, or any precious / delicate item in such luggage lest it is lost or
damaged. The company will entertain no claim in this regard.
10. Luggage weighing up to 30 Kgs per ticket is allowed free of charge in the bus. In case of
excess luggage, ELT (Extra Luggage Tariff) will be charged as per company policy. Passengers
are requested to take ELT Slip from the loader at any cost.
11. In case of luggage (other than the hand luggage) is misplaced / lost from the compartment,
the passenger shall be compensated in terms of weight (and not in terms of value) as per
[16]
compensation policy of the company (which is presently Rs.100/- per Kg except food items
which is Rs.20/- per Kg).
12. In case of luggage (other than the hand luggage) is misplaced / lost, passengers are requested
to report to the terminal office immediately / before leaving the terminal.
13. Passengers are also requested to take care of their belongings in the passenger's lounge,
washrooms, ticketing or departure area etc. Company will not bear any responsibility in case of
loss of luggage.
14. Pets / Animals are not allowed in the bus or its luggage compartment.
15. Chemicals, Oil Cane, Gas Cylinders (Full or Empty), Alcohol, Drugs, Weapons, Explosives,
Liquids, Perishable Items are not allowed in the bus or its luggage compartment.
16. Any passenger who is drunk or in condition will not be allowed to enter in the bus even he /
she has bought the ticket.
17. Company is not responsible if any passenger lost his / her luggage, money, jewelry, prize
bonds and precious items etc. due to accident / any kind of tragic incident.
18. Passengers are not allowed to leave their vehicles in the premises of the company while
traveling to / from different stations. Only those persons can park their vehicles for a short while
who have come to receive or see their guests off.
19. Company will not be responsible for any damage to the passenger's vehicles due to wrong
parking by them.
20. In case of any accident / tragic incident, the liability of the company shall be limited in terms
of its insurance policy.
21. In case of breakdown of bus en-route, the passengers shall be accommodated in the next /
substitute / same bus and part of the fare would be refunded as per company policy.
22. Company will not be responsible for any late departure or arrival due to road construction /
traffic congestion / accident / tragic incident or any improper weather condition.
Competitors of Daewoo Express:
More and more bus services in Pakistan are competing against Daewoo style of luxury services.
With the decline of Railway services, bus travel has become the chief source of intercity travel in
Pakistani. The transit market is becoming overly competitive in Pakistan with new companies
offering more comfort and facilities opening at a fast pace all over the world. Al Halal Travels, a
new Bus Terminal, in Faisalabad, built at an estimated cost of Rs.500 million, is an interesting new
[17]
addition to this burgeoning expanding market in Pakistan. This newly constructed terminal, with
international standard facilities, is located at the main Sargodha Road, opposite Crescent Textile
Mills, in an area that is often called, “Bolay di Chuggi” after a local saint. Three bus companies –
Faisal Motors, Shuja Motors and Silk Line – are offering services from this terminal. Silk Line is
affiliated with Al Halal Travels that owns and operates the terminal. Connecting Faislabad with
Rawalpindi, Lahore and Multan this terminal is already offering luxury services to more than a
thousand passengers daily. Fast developing motorways are transforming lifestyle and travel
dynamics across Pakistan – especially in Punjab. Buses from Faisalabad now reach Lahore in less
than two hours and Rawalpindi in four. Multan, which at the moment is at a four hours bus
distance, will be reachable in two and a half hours once the new motorway is complete and
operational. Credit for the motorways will go to Pakistan Muslim League-Nawaz (PML-N)
government who first conceived the idea, and kick started the work on Lahore – Islamabad
motorway in 1993. The real idea behind the motorways was to inspire the nation that Pakistan,
too, can compete with the rest of world when it comes to infrastructure development. The
government’s idea of introducing a service provider like Daewoo into Pakistani transport system
in 1997 lead to a revolution of its own kind. Today increasing number of indigenous service
providers like Al Halal Travels is competing to provide services often better than Daewoo at
affordable prices.
Business volume:
The Business Volume Report provides visibility into the number of sales and the amount of
revenue generated during a specific period of time. The sum of the total amount of sales orders
for each day determines the earned revenue. The key indicators to a business, company or other
type of organization based on data, evidence, fact, record, trend or experience that inform an
employee or manager of the current state of business volume or business orders.
[18]
This table is the business volume of Daewoo Express Limited.
Product line:
The Daewoo express has been providing its transportation services since the last 12 years to the
crowd in Pakistan. The company has been providing long distance traveling to the public of
Pakistan and aims to keep on increasing the number of destinations across the country. The
company currently has 31 cities that it covers and 40 total destinations from Sindh, Punjab and
KPK. The bus service is currently not operating in any part of Baluchistan. The bus service
currently is not only limited to city to city traveling but Daewoo express Lahore has its inter-city
service which are shuttles which drop off people from one point to another in very nominal rates.
Daewoo fares are nominal when it comes to city based traveling as long journeys privately are
more costly. Daewoo in the recent times expanded its services to Okara and its now been connected
to 9 major cities of Pakistan which in itself is a major achievement.
If we look into the bus service, it's the first of its kind to keep environment friendly technology in
the bus system. To add up to the services, there's a cargo service as well which is operational 24/7.
Cargo consignments are transported safely and professionally from one city to another.
There are two types of services that Daewoo is providing in Pakistan which are as follows:
1. Express Bus Service
2. City Bus Service
Express Bus Service:
This is the inter-city bus service of Daewoo International Corporation in Pakistan.
Major routes
Lahore - Islamabad
Lahore - Multan
Lahore - Sargodha
Lahore - Faisalabad
Rawalpindi - Murree [wagon]
Lahore - Peshawar
[19]
City Bus Service:
This is the intra-city service of Daewoo International Corporation in Lahore, Pakistan. This
department offers an extensive transportation network within Lahore through a fleet of 70 buses.
Daewoo is also considering the launch of this service in other metropolitans such as Karachi.
DAEWOO EXPRESS:
Daewoo Express 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 a
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 Express has been rendering transport facilities since its
inception in 1997 to the people of Pakistan. It is appreciated by the masses as well as 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
a transport sector, through various channels. Daewoo Express has been rendering transport
facilities since its inception in 1997 to the people of Pakistan. It is appreciated by the masses
as well as 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 a transport sector, through various channels.
DAEWOO LAHORE FEEDER ROUTE:
Lahore Feeder Route is a project of Daewoo Pakistan. The Punjab Mass Transit Authority (PMA)
has started 200 new public buses in collaboration with Daewoo on feeder routes for the Lahore
Metro Bus routes. The feeder bus service will connect the rest of the city with the 27-km-corridor
of the Metro Bus. The transportation authority has already handed over the possession of Green
Town Bus Depot and Lahore Railway Station to Daewoo Pakistan Express, the contractor and
operator of the feeder buses. The PMA and Daewoo has started the feeder buses project as these
buses has successfully passed through warranty inspection, vehicle inspection, registration,
insurance and installation of e-ticketing and GPS tracking equipment. Initially, these buses would
run on 15 feeder routes of the Lahore Metro Bus service, covering 123km. Later, more buses would
be inducted in a phased manner once Lahore Orange Line Metro Train becomes operational. The
[20]
authority has already completed its homework to integrate e-ticketing systems of both the Lahore
Metro Bus service and feeder buses.
DAEWOO MULTAN METRO:
Multan is the 3rd largest city in the Province Punjab and is located on National Highway (N-5)
leading to Bahawalpur and Muzaffargarh / Dera Ghazi Khan en-route to Karachi. The city lies east
of Chenab River, almost in the geographic center of the country, at a distance of about 966 km
from Karachi. The Multan Bus Rapid Transit or Multan Metro bus System is a bus rapid transit
(BRT) system under-construction in Multan, Pakistan. Multan Metro Bus system has 18.5 KM
dedicated track running from Bahauddin Zakria University (BZU) to Chowk Kumharan. There is
a 12.5 KM elevated track to avoid conflict of Metro bus with other traffic in the congested areas,
which runs from the Northern Bypass to BCG Chowk and Veharhi Chowk to General Bus Stand.
The System has 21 stations in total while 7 station at grade and 14 at elevated track.
DAEWOO CAB:
Daewoo Cab Service was launched in Lahore and Rawalpindi in May 2014, essentially as an
affordable cab service to facilitate Daewoo Express bus passengers only. With a fleet of over 200
vehicles, Daewoo Cab now provides point-to-point and Inter-city cab service in Lahore,
Rawalpindi, Islamabad, Multan, Faisalabad, Peshawar, Abbottabad, Sialkot and Karachi. During
the summer season it also operates from the northern regions of Pakistan.
DAEWOO FastEX:
It was the year 1997 that began our journey through time with the inception of Daewoo Pakistan
Logistics Pvt. Limited. The company was aimed at providing courier and logistics services which
it has rendered throughout its course to the people of Pakistan. Being one of the most speedy and
reliable cargo service of the country it was known as Daewoo Cargo which has now transformed
into a full-fledged logistics solution and rebranded as Daewoo FastEX.
Following services are offered under the umbrella of Daewoo FastEX
1. Daewoo GlobEX
2. Daewoo COD
3. Smart Cargo
4. Daewoo Greetings.
[21]
DAEWOO GLOBEX
Daewoo GlobEX provides speedy & reliable movement of international shipments across the
globe through an integrated network. Your documents and parcels are delivered with utmost care
through world’s renowned international logistics partner brand DHL to over 220+ destinations
worldwide. DHL is the global market leader in logistics industry. Daewoo Pakistan and DHL have
joined hands and now DHL franchisees would be opened at all Daewoo terminals.
This alliance of both the brands Daewoo Pakistan and DHL would surely provide great
convenience to the customers. International shipments can be booked with ease from any Daewoo
terminal.
DAEWOO COD:
Daewoo COD provides hassle free cash on delivery service to its customers. With the surge in
ecommerce and online businesses Daewoo COD would be a great help to grow your business. We
will deliver your shipment, collect cash on your behalf and return cash safely and efficiently within
hours. Currently we are providing terminal to terminal service but for our customers ease we would
soon be launching our doorstep service. Currently Our COD service is available nationwide on all
Daewoo Terminals.
DAEWOO GREETINGS:
Daewoo Greetings brings joy to relations & festivities by delivering your feelings to your loved
ones. No matter what the event we will deliver your heartfelt emotions in the best possible way
and will provide you with the ultimate gifting experience. We offer a wide range of products to
our customers which includes cakes, flowers, gift items arranged from top notch vendors. Daewoo
Greetings also brings for you the traditional Soghaat from all over Pakistan. Be it Nankhatai from
the famous Khalifa Bakery, Halwajat from Multan or Nimko from Karachi we will make it
available for you. The Soghaat from Pakistan are a sign of our rich cultural heritage and glorious
past. These are a source of inspiration and pride for us people of Pakistan. Now you can order it
with ease for your loved ones anywhere in Pakistan.
SMART CARGO:
Smart cargo offers terminal to terminal services. It provides same day delivery options for the
customers. Customers can conveniently book their shipment from one Daewoo Terminal and
receive it once it reaches the destination terminal. There is continuous movements of our buses
daily, on some destinations multiple times a day so it is quite convenient for the customers to
[22]
transport their goods in a secure and economical way. Through this service customers can transport
their parcels, documents, heavy weight shipments, light weight shipments, special handling parcels
and much more.
Organizational Structure
An organizational structure is a system that outlines how certain activities are directed in order to
achieve the goals of an organization.
These activities can include rules, roles, and responsibilities. The organizational structure also
determines how information flows between levels within the company. For example, in a
centralized structure, decisions flow from the top down, while in a decentralized structure,
decision-making power is distributed among various levels of the organization. Having an
organizational structure in place allows companies to remain efficient and focused.
ABBREVIATION DEFINITION
BOD Board of Director
CEO Chief Executive Officer
GM General Manager
DM Direct Manager
[23]
[24]
Board of directors
ShaheryarArshad Chishty
Sameer Arshad Chishty
Jong HoonKim
Min Sang La
GiKyunWang
Hyun Sang Youn
SaadSaeed Faruqui
[25]
Number of employees
Daewoo say, “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.”
That’s mean Business owners need employees that are able to get the job done,
because employee performance is critical to the overall success of the company. ... Doing so helps
determine strengths, weaknesses and potential managerial gaps in the business organization.
Total number of employees 4046 are working purely for Daewoo express limited.
Number of employees varies time by time due to following reasons:
New hiring
Resignation from employees
Establishment or extension of a new branch
Transferring of existing staff to any overseas branch
Therefore, number of employees in Daewoo express limited varies time by time
Designation Employees
Board of directors 7
Chief executive officer 1
President 1
Vice president 1
CFO 1
Director Procurement & Legal 1
GM 6
DGM 4
DM 1
Sr. Manager 6
Manager 13
Other employees Approx. 4004
Total Approx. 4046
[26]
Head offices of Daewoo Express:
Daewoo express have office those cities where give services. Like Lahore, Multan, Islamabad,
Karachi, Rawalpindi, Faisalabad, Peshawar, Sargodha, Abbottabad, Sialkot, Bahawalpur,
Hyderabad, Sahiwal, Sukkur, Swat, Dera Ismail Khan, Chowk Bahadurpur, Dera Ghazi Khan etc.
• City: Lahore
• Landmarks: Ferozpur Road, Kalma Chowk, and New Garden Town
• City: Islamabad
• Landmarks: Khadda Market, Sitara Market
• City: Faisalabad
• Landmarks: Akbarabad Chowk, Allied Hospital
• City: Peshawar
• Landmarks: Gulbahar Police Station, Old GTS Workshop
• City: Rawalpindi
• Landmarks: EME College, G.T Road
• City: Gujranwala
• Landmarks: Admore Petrol Pump
• City: Karachi
• Landmarks: Coridor Area Scheme, Main Super Highway
• City: Sialkot
• Landmarks: Garrisian Park, General Bus Stand
• City: Karachi
• Landmarks: Bombay Hotel, Cantt Station
Brief Introduction of all the departments
Daewoo express limited has many departments like, Finance, Marketing, HR, Safety & Security,
Workshop & Maintains, Supply Chain, Cargo, Logistics and procurement.
I will described all departments that how to work in Daewoo express limited
a. HR Department
Human resource management (HRM) is the process of employing people, training them,
compensating them, developing policies relating to them, and developing strategies to retain them.
In other words, HRM is not an administrative role rather than a strategic role crucial to the success
[27]
of the organization. Keep in mind that many functions of HRM are also tasks other department
managers perform, which is what makes this information important, despite the career path taken.
Following four main roles that HRM plays in any organizations:
1. STAFFING: Staffing involves the entire hiring process from posting a job to negotiating a
salary package. Within the staff function, there are four main steps:
• Development of a staffing plan – This plan allows HRM to see how many people they should
hire based on revenue expectations.
• Development of policies to encourage multiculturalism at work – Multiculturalism in the
workplace is becoming more and more important, as we have many more people from a variety
of backgrounds in the workforce.
• Recruitment – This involves finding people to fill the open positions.
• Selection – In this stage, people will be interviewed and selected, and a proper compensation
package will be negotiated. This step is followed by training, retention, and motivation.
2. DEVELOPMENT OF WORKPLACE POLICIES: Every organization has policies to
ensure fairness and continuity within the organization. Workplace policies might be as follow:
• Discipline process policy
• Vacation time policy
• Dress code
• Ethics policy
• Internet usage policy
3. COMPENSATION AND BENEFITS ADMINISTRATION: Compensation includes
anything the employee receives for his or her work. Employee compensation may include the
following:
• Health benefits & Retirement plans
• Stock purchase plans
• Vacation time and sick leaves
• Bonuses & Tuition reimbursement
4. RETENTION: Retention involves keeping and motivating employees to stay with the
organization. Compensation is a major factor in employee retention, but there are other factors as
well.
[28]
5. TRAINING AND DEVELOPMENT: Once we have spent the time to hire new employees,
we want to make sure they not only are trained to do the job but also continue to grow and develop
new skills in their job. This results in higher productivity for the organization. Examples of training
programs might include the following:
• Job skills training, such as how to run a particular computer program
• Training on communication
• Team-building activities
• Policy and legal training, such as sexual harassment training and ethics training
6. DEALING WITH LAWS AFFECTING EMPLOYMENT: HR must be aware of all the
laws that affect the workplace. An HRM professional might work with some of these laws:
• Discrimination laws
• Health-care requirements
• Compensation requirements such as the minimum wage
• Worker safety laws
• Labor laws
The legal environment of HRM is always changing, so HRM must always be aware of changes
taking place and then communicate those changes to the entire management organization.
7. WORKER PROTECTION: Safety is a major consideration in all organizations. Oftentimes
new laws are created with the goal of setting federal or state standards to ensure worker safety.
Worker protection issues might include the following:
• Chemical hazards
• Heating and ventilation requirements
• Use of “no fragrance” zones
• Protection of private employee information
8. COMMUNICATION: Besides these major roles, good communication skills and excellent
management skills are key to successful human resource management as well as general
management.
b. Marketing Department:
Marketing is the process by which companies determine what products or services may be of
interest to customers, and the strategy to use in sales, communications and business
development. It is an integrated process through which companies create value for customers and
[29]
build strong customer relationship in order to capture value from customers in return. Marketing
is used to identify the customer, to keep the customer, and to satisfy the customer. With the
customer as the focus of its activities, it can be concluded that marketing management is one of
the major components of business management. The evolution of marketing was caused due to
mature markets and overcapacities in the last 2-3 centuries. Companies then shifted the focus from
production to the customer in order to stay profitable. The term marketing concept holds that
achieving organizational goals depends on knowing the needs and wants of target markets and
delivering the desired satisfactions. It proposes that in order to satisfy its organizational objectives,
an organization should anticipate the needs and wants of consumers and satisfy these more
effectively than competitors. The term marketing has changed and evolved over a period of time,
today marketing is based around providing continual benefits to the customer, these benefits will
be provided and a transactional exchange will take place. Marketing is the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging offerings that
have value for customers, clients, partners, and society at large.
There are three main types of sales which we called sales channels.
Direct Sales: Direct selling is the marketing and selling of products directly to consumers away
from a fixed retail location.
Maker to Dealer: It is the marketing and selling of products directly to the dealer.
Dealer to Customer: In this type of marketing dealer purchase products from the maker and sale
it to customer with their own profit.
c. Procurement Department:
The act of obtaining or buying goods and services. The process includes preparation and
processing of a demand as well as the end receipt and approval of payment. It often involves
(1) purchase planning,
(2) standards determination,
(3) specifications development,
(4) supplier research and selection,
(5) value analysis,
(6) financing,
(7) price negotiation,
(8) making the purchase,
[30]
(9) supply contract administration,
(10) inventory control and stores, and
(11) disposals and other related functions.
The process of procurement is often part of a company's strategy because the ability to purchase
certain materials will determine if operations will continue. A business will not be able to survive
if it's price of procurement is more than the profit it makes on selling the actual product.
d. Cargo Department:
Cargo service of Daewoo Express Bus Service provides cheap but safe and quick courier service
as compared to other similar companies. The cargo operations have increased multiple folds since
the start of the service. 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.
e. Daewoo FastEX Cargo & Logistics Service:
FastEX is the part of cargo department. Daewoo FastEX Service has been facilitating our valued
customers since the inception of Daewoo Express in Pakistan. Our Cargo Setups, adjacent to all
terminals, are open 24/7 providing Safe & Speedy dispatch and delivery of cargo consignments to
our clients. In addition to the main bus terminals we have several Cargo collection points (for both
booking and delivery) strategically located all across the country. Traditionally, Daewoo utilized
the buses for the transport of cargo, which is still being done, but with an increase in demand of
our cargo service we have inducted a fleet of trucks to haul cargo across our nationwide network
without compromising on time. The transit time of our trucks is comparable to Daewoo Express
Buses. In short, the induction of the fleet of trucks has increased our capacity and helped us in
being punctual in delivering the cargo.
f. COD service in Cargo Department:
Now you can meet your nationwide orders without stressing over of their logistical requirements.
Daewoo COD revolutionizes the E-commerce industry through its efficient booking, delivery and
[31]
return services along with the provision of customized solutions to grow online business of our
valued customers. Cargo offer a complete range of services including updated shipment tracking,
API integration to streamline your processes, convenient recovery solution and most importantly,
a customer online portal to keep you informed of the payment schedules, shipment record and
other useful reports to assist your paperwork. Considering the needs of our valued customers, we
offer COD to walk-in as well as corporate customers with the facility of “Terminal to Terminal”
and Doorstep Pickup/Delivery.
g. Finance Department:
It maintains company’s accounts records. It maintains the record of all the business transactions.
It operates the company’s bank accounts and maintains the record of payments and receiving.
Finance Department will be responsible for proper disbursement of monthly salary. Monthly
payroll procedure is done by HR Dept. and Finance Department regarding monthly payroll
process. After that Terminal Staff handovers the salary cards to Admin & Finance / HR
Representative (at Terminal) who, thereafter, check the salary cards status and enter absents,
overtime, extra duty, trip charges etc. into salary software. Then salary cards are being sent to HR
Department HQ, till 23 rd. of every month, for final checking and preparation of payroll.
After completion of above process a monthly payroll summary will be printed out and the same
will be approved by Head of HR Department, Director Finance & CEO before disbursement of
monthly salary. After netting all the required approvals it is then submitted to Accounts
Department. Accounts Department maintains lender and after posting details, they forward it to
Finance Department for salary disbursement. Finance Department prepares employee’s salaries
cheques and sends it to concerned Terminals / Banks along with details. All approved bill shall
then be sent to Finance Dept. for further process and payment.
h. Workshop & Maintains Department:
The main objective of this department is "Provide road worthy fleet to operations for the
provision of reliable services to commuter"
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.
[32]
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 tachograph 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 refresher courses to overcome
these negligence while execution of duties.
VEHICLE INSPECTION: 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 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.
Furthermore on quarterly basis we are carrying docking service of buses. In this service we check
engine, chassis, bus interior and exterior body condition etc. We are using genuine parts all the
time to ensure the safety and comfort of our valued passenger.
[33]
i. Safety & Security
Daewoo assures its passengers a safe & secure journey. For this purpose a separate Security
Department is working with highly professional staff. Almost all staff members are Ex-Army
officials. The best way to ensure the most reliable security is to put the best possible candidate for
the job in the position. That's why the Security Department uses an extensive screening process
when hiring and continues with intensive candidate evaluation for specific jobs. The Security
Department is committed to deliver quality security services to our passengers through defined
procedures and measures. We have formalized and automated systems that enable us for effective
and efficient results.
Some of the security & safety measures followed are:
• A team of skilled guards at all terminals.
• Deputation of alert armed guard in the bus.
• Security checking of passengers at boarding time.
• Lost & Found department for the security of luggage.
• Movie capturing of all passengers before the departure.
• Before boarding, carry-on baggage of each passenger is checked.
j. Supply chain department
Supply chain management (SCM) is the active integration and coordination of all supply chain
activities to provide you, the customer, with the best value. Providing you with the best value
means providing you with a quality product for a reasonable price. Companies are able to
provide customer value by coordinating the efforts of every activity involved in their supply
chains internally as well as externally among supply chain members.
Conducts and improves forecasting activities and methods in order to maintain effective
inventory levels.
Analyses pertinent data such as usage history, lead times, inventory, and market trends in
order to maintain established operational readiness metrics.
Coordinates with Operations in order to ensure effective Material Requirement Planning
(MRP) and works closely with Purchasing to ensure material delivery as per MRP.
Develop, hone and execute new improved procurement strategies across all channels of
purchasing.
[34]
Manage every aspect of the supply chain and notify the senior management team of any
possible obstacles to ideal efficiency.
Institute policies and procedures for collecting and reporting key metrics that will reduce
our overall expenses while increasing productivity.
Perform cost analysis and set appropriate benchmarks.
Coordinate deliveries.
Create policies and procedures for risk management and mitigation.
I. Comments on the organizational structure
Organizational structure of Daewoo is much more co-operative with the customer as well as with
the work staff. They listen to the employees and gets important feedback to make their policies.
Organization Culture Daewoo Express is much more conscious about their time and there in and
out. The organization’s plus point is the time conscious and it is very strict in this issue. Not Only
the CEO takes the decisions but also gets feedback from employees and public also. Every man in
the organization follows the decisions of Management. The process of decision making is held in
organization both by centralization process and decentralization. The decision making in Daewoo
is held by Management of the company. Organizational structure of Daewoo is much more co-
operative with the customer as well as with the work staff. They listen to the employees and gets
important feedback to make their policies.
[35]
The websites, Facebook page, and other social works are run in this branch.HR polices are made
in this branch. For Traveling services give training to the crew. All buses routes, timing, online
tickets, timing of crew, management schedule, salary slip and other functions are issue by the main
office. With this branch Daewoo express limited have small terminal where run the some routes.
All management, internship, and job polices make in this branch.
All cargo and FastEX services are control and manage in this main office.
Internship program is consisting of 6 weeks training at Daewoo Express Limited Lahore head
office. I was assigned to work in marketing division.
I worked from 5-07-2019 to 16-08-2019 in Daewoo marketing department in the team of Sir
Jazib (Manager) in the main head office .Manage all Marketing promotional activities in this
department.
[36]
Internal & External signboard placement of terminals, passenger lounges, ticketing area,
etc.
Help establish strategic alliances resulting in enriching the overall passenger experience
To ensure revenue by leasing out space/air-time on Daewoo's platform for advertisement
purpose
To plan, execute & manage marketing campaigns nationwide
To coordinate with creative/releasing agencies w.r.t marketing campaigns
To coordinate with Electronic & Print Media w.r.t Media Communications
Ensure good contacts with company releasing/creating agencies, advertiser, etc.
Initiate & monitor market research/survey of different buses routes and analyze their
findings
Coordinate marketing activities plan and physically participate in promotional activities.
Ensure build up good working relationship with media for company good image.
Media spaces sales to the companies for generate advertisement income for the company.
Cargo Department:
The company is providing services like terminal to terminal cargo services. Door step cargo
services are also available in major cities of Pakistan. They are also providing international cargo
services to their customers. As an intern in Daewoo FastEX I can say it is best cargo company in Pakistan
with a fantastic environment for employees. 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.
CASH (WALK-IN) CUSTOMERS
Retail customers are accommodated without the need of a corporate account.
DOORSTEP PICKUP AND DELIVERY
Our well trained staff picks the shipments after proper verification and delivers at your desired
location.
[37]
COD CUSTOMER PORTAL
Helps you in tracking shipments, bulk booking, payment schedules and fetching data through
different useful reports.
REAL TIME TRACKING
Shipment tracking via customer portal, website, Daewoo express app and through our UAN
number as well.
CASH PAYBACK TO WALK-IN CUSTOMER
Our fast and reliable network allows us to pay back your cash within few hours after shipment
delivery.
EMAIL/SMS NOTIFICATIONS
Customer is notified regarding the real time delivery status of the shipment.
REVERSE LOGISTICS
Provide product recovery to our corporate customers covering their warranty and exchange
claims.
API INTEGRATION
Integrating our system allows us to automate your shipping process and to minimize errors.
[38]
Manage digital marketing with website and Facebook page
Operate website, Facebook page and give the answer to customers at Facebook page
Observer above the line and below the line marketing and manage this activities in
Daewoo Express Limited
My responsibility is that check out cargo activates and check out the campaign about
cargo marketing
Check out cargo service on website, billboard and cargo points flexes that it work
properly
Giving order for flexes that need on terminals
3rd week (19th to 26th July): Activates
Manage printers, vendors on daily basis
Where and how flex is release and display which terminal is choose for flexes and
advertising
Choosing lines words for printing press and flexes
Typing at word file for flexes and printing
How select the audio magazine and videos that show in the buses to public
Manage the magazine printing that give in all Daewoo buses
4th week (26th to 2nd August): Activities
Internal & External signboard placement of terminals and choose the correct places for
signboard
Graphic designing, editing for flexes, billboard, and paper advertisement for Daewoo new
routes, cab service and Cargo services
Contact with the photographers and describe her that what kind of pictures and motion
are need for marketing
Conduct marketing research meeting with senior and manager of marketing Head
Working with the catering staff to ensure daily 20,000 Passengers in Bus Journey Snack
on time serving for approx. 600 buses daily departure from 55 bus terminals.
[39]
Checking of travelled Passengers Complaints & Suggestions for improvements.
5th week (2nd to 9th August): Activities
Dealing with customers complaints & suggesting the best possible solutions in cargo
department
Coordination with other terminals in order to streamline cargo operations
Make marketing strategy with Cargo and FastEX team
Working with FastEX service COD
Manage the coming mangoes from Multan to Lahore deliveries
The data and addresses compare the list that come from other cities
If get any mistake in list and file inform to the senior
6th week (9th to 16th August): Activities
Manage FastEX Facebook Page, Instagram
Decorate the head office of FastEX and Marketing Department on the occasion of 14 th
August
Reply the customer on social media
Make a strategy that register on FastEX and get prizes this Strategy is attract the
customer
Update the Facebook page, website and Instagram
In last two days repeat all the works and strategies that I learn and do in five weeks.
[40]
Structure of Marketing & Cargo
Vice
CFO
President
Marketing Cargo
Gernenal
DGM
Manager
Sr.Manager Genrnal
Marketing Manager
Manager Sr.Manager
Assistant
Manager
Manager
Senior Assistant
Officer Manager
Senior
Officer
Officer
Officer
[41]
II. Job Description:
Job description are written statement that describe the:
Duties
Responsibilities
Most important contributions and outcomes needed from a position
Job description clearly identify and spell out the responsibilities of a specific job. Job
descriptions also include information about working conditions, tools, equipment used,
knowledge and skills needed, and relationships with other positions.
General Manager Job Description:
Managing all marketing for the company and activities within the marketing department.
Developing the marketing strategy for the company in line with company objectives.
Coordinating marketing campaigns with sales activities. Overseeing the
company's marketing budget.
Sr. Manager of marketing job description:
Senior Marketing Manager Job Description. Senior Marketing Managers oversee a
company's marketing department staff. They ensure the team is effectively promoting the company
and its merchandise and targeting the correct and appropriate audience in their campaigns.
Manager of marketing job description:
Marketing managers are responsible for developing, implementing and executing
strategic marketing plans for an entire organization (or lines of business and brands within an
organization) in order to attract potential customers and retain existing ones.
Assistant Manager of marketing job description:
Assistant Marketing Manager Responsibilities and Duties. Assist Marketing Manager in planning
and supervising marketing operations to achieve revenue target. Coordinate with
Brand Manager in developing marketing plan and budget. Conduct marketing campaigns and trade
shows to promote brand awareness among consumers.
Senior Officer of marketing job description:
Senior Marketing Manager Job Description. Senior Marketing Managers oversee a
company's marketing department staff. They ensure the team is effectively promoting the company and its
merchandise and targeting the correct and appropriate audience in their campaigns.
[42]
Officer of marketing Job description:
Preparing, planning and project managing the publication of all publicity material to maximize
brand promotion. ... Developing and implementing an internal marketing programmer. Supporting
the marketing manager in day to day marketing activities.
III. Number of employees working under Marketing & Cargo
A nice Company comprising hard working people. Everyone had a tough time with high targets
for job completion. In this branch total 142 staff work and in marketing 27 member are working
and in cargo approx. 43 staff are working.
IV. Sub-department
Marketing don’t have sub department but Cargo Department have sub-Department like
Smart Cargo
COD
FastEX
GlobEX
a) Price
After developing their pricing structures and strategies, companies often face situations in which
they must initiate price changes or respond to price changed by competitors. In some cases, the
company may find it desirable to initiate either a price cut or a price increase. In both cases, it must
anticipate possible customers and competitor reactions. Several situations may lead the firm to
consider setting its price. One such circumstance is excess capacity: In this case, the firm needs
more, business and cannot get it through increased improvement or other measures. It may drop
its "follow-the-leader pricing"— charging about the same price as its leading competitor—and
aggressively cut prices to boost profit. A successful price increase can greatly increase profits. For
example, if the company's profit margin is 3 percent of fare, 1 % price increase will increase profits
by 33 percent if fare volume is unaffected. Pricing is one of the most important elements of the
marketing mix, as it is the only mix, which generates a turnover for the organization. The
remaining 3 P’s are the variable cost for the organization. It costs to produce and design a product;
it costs to distribute a product and costs to promote it. Price must support these elements of the
mix. Pricing is difficult and must reflect supply and demand relationship. Pricing a product too
high or too low could mean a loss of sales for the organization.
According to above statements pricing a product too high or too low could mean a loss of sales for
the organization. The consumers of Daewoo Express Pakistan also say that the increase in the fairs
of busses is decreasing the number of customers. They said as the fairs are increasing day by day
many customers have shifted to other transport options. Majority of the customers suggested
decreasing the fair rates. When the survey was conducted regarding the services of Daewoo Express and
the customers what you say about the fair of Daewoo? In response to it 62.5% customers said the fair should
decrease, 8.7% customers said the fair should increase and 6% said there should be no change in the fair
rates.
Whereas the Daewoo management says our customers are quality conscious not price conscious.
They don’t care of the price that they are paying for these service they want only good services.
[44]
The survey conducted regarding the fair rates of Daewoo proved that people want decrease in the
fair rates. When people were asked that do you think you are getting enough services for which
you are paying? 62.5% customers said yes its justified and 37.5 % said it’s not justified.
“An organization can adopt a number of pricing strategies. The pricing strategies are based much
on what objectives the company has set itself to achieve”. There are different strategies that one
can adopt which includes penetration, skimming, competition pricing, product line pricing, bundle
pricing, psychological pricing, premium pricing, optional pricing.
According to the Daewoo management their prices are determined on the basis of their costs and
also self-determined. They are charging high fairs because they are having monopoly and they
don’t have any competitor. They say that they determine the buying power of the customers but
they are concentrating only on the upper class and ignoring the middle class. This has been
analyzed through the survey conducted because 70% customers said the fair must be decreased
and 30% said that there should be no change in the fairs. When setting the price the organization
or the individual has to make some other pricing decisions also which includes suggested retail
price, volume discounts, wholesale pricing, early payment discounts, seasonal pricing, bundling
price, flexibility, and price discrimination. There are no discounts provided by the Daewoo
according to the feedback of people. The Daewoo express is just operating at standard fairs and
not providing any discounts to anyone. When the customers were asked that any suggestions that
they want to give to the management the mostly given suggestion was that it should decrease the
fair rates. The right pricing strategy leads to the success of the business and bad pricing strategy
just destroys the business.
b) Place:
“Place or distribution. Looking at location and where a service is delivered.”
“Place represents the location where a product can be purchased. It is often referred to as the
distribution channel. It can include any physical store as well as virtual stores on the Internet.”
The Daewoo Company carries out special research to determine the place and city for their
terminal. There are many determinants on the basis of which they decide that they should start
their services in which city. It includes population of city, neighboring cities as well, standard of
living, lifestyle, source of income of people of that area etc. They also advertise when opening a
new terminal so that people may come to know about their launch of services.
[45]
Most of the customers are satisfied with the location of the terminal but some people have some
reservations regarding it. The terminals in small cites are easily accessible and at convenient place
according to the customers but the terminals are not convenient and at easy accessible locations
for all the customers. So the customers have also suggested solving this issue. According the
survey conducted 75% customers said that the Daewoo terminal is at convenient and at easily
accessible location while 25% customers said it’s not. Daewoo has its own terminals in the three
provinces of Pakistan and soon going to operate in Baluchistan as well. According to Daewoo
Express the Company will make sure that service is available throughout the country at all the
suitable locations. It will never stop until they open their terminals and provide services to the
people of Pakistan at all possible locations. The customers responded to the survey and suggested that
the company should start new terminals in different city of Pakistan specially Sindh. And the people of
Baluchistan are also ready to welcome Daewoo Express. People also suggested that there should be more
improvement in cleanliness and security at the terminal. There should be maps within the big cities to guide
people about the Daewoo terminal. Because in big city everyone is not aware of the whole city like in small
cities. According to the survey conducted 75% customers said that the Daewoo terminal is at convenient
and at easily accessible location while 25% customers said it’s not.
Distribution is about getting the products to the customer. Some examples of distribution decisions
include:
Distribution channels
Market coverage (inclusive, selective, or exclusive distribution)
Specific channel members
Inventory management
Warehousing
Distribution centers
Order processing
Transportation
Reverse logistics
The distribution channels of Daewoo Express are company owned. It is providing services through
its different terminals in the cities of Pakistan. And as for as the market share is concerned it is
concentrating on exclusive and selective market share because its target market is upper middle
class. There whole strategies are prepared according to the wishes and needs of upper middle class.
[46]
c) Promotion:
“This includes advertising, personal selling (e.g. attending exhibitions), sales promotions (e.g.
special offers), and atmospherics (creating the right impression through the working environment).
Public Relations are included within Promotion by many marketing people (though PR people tend
to see it as a separate discipline).”
“It represents all of the communications that a marketer may use in the marketplace. Promotion
has four distinct elements: advertising, public relations, word of mouth and point of sale.”
The above definitions explain the importance of promotion and also the means which can be used
to promote a product, service, company or an individual. Here the promotional efforts of the
Daewoo Express will be analyzed that how much it has focused on this P of marketing mix.
However, when the author was carrying out the empirical findings the Daewoo management said
we don’t do too much advertising and promotion. Here the response of the customers will also be
mentioned that what they said regarding the promotional efforts of Daewoo Express. But before
analyzing it lets looks at the various strategies by which the promotional efforts can be done. “A
successful product or service means nothing unless the benefit of such a service can be
communicated clearly to the target market. An organizations promotional strategy can consist of:
advertising, public relations, sales promotion, personal selling, personal selling, word of mouth,
direct mail”. From the statement “successful product or service means nothing unless the benefit
of such a service can be communicated clearly to the target market” it becomes very clear that the
business is incomplete without the promotional efforts. The customer will be attracted towards the
product or service only when he will be aware of its good and distinguished features. Now each
strategy of the promotion will be analyzes against the Daewoo’s promotional strategies.
Advertising: Any non-personal paid form of communication using any form of mass media.
Daewoo uses the cable TV and billboards only when it starts its operations in a new city or when
it launches a new route. And it uses newspaper also when required specially for recruitment
purpose. The customers in response to the advertising strategy said that they rarely see Daewoo’s
advertisement on the TV either its satellite TV or cable TV however they have seen its
advertisements on newspaper and billboard. According to the survey conducted 50% customers
said that they have seen the advertisement on newspaper, 33% on billboards, 13% on cable TV
and 4.2% on TV.
[47]
Public relations: Public relations Involves developing positive relationships with the organization
media public. The art of good public relations is not only to obtain favorable publicity within the
media, but it is also involves being able to handle successfully negative attention. Daewoo Express
is not doing any kind of Public relations promotion. They just have a good image in the mind of
people and media because they are the only company who is offering something different than the
other companies. And as for handling the negative attention we haven’t seen any activity. The
reason is only they are ignoring the most important P of marketing mix.
Sales promotion: It is commonly used to obtain an increase in sales short term. It can involve
using money off coupons or special offers. The Daewoo Express is operating standard fair rates so
the customers are attracted just as normal customers. They are not offering any incentives which
could increase their sales. Not offering any discounts or packages for regular customers. Through
the survey it was found that people suggested the management of Daewoo Express should offer
some discounts specially concession for the students.
Personal selling: Selling a product or service one to one is called personal selling. The Daewoo
express is offering only its services at its terminal and standard services.
Word of mouth: The passing of information from person to person is word of mouth. Originally
the term referred specifically to oral communication (literally words from the mouth), but now
includes any type of human communication, such as face-to-face, telephone, email, and text
messaging. Word of mouth is any apparently informal communication about the product by
ordinary individuals, satisfied customers or people specifically engaged to create word of mouth
momentum. Sales staff often plays an important role in word of mouth and Public Relations. As
mentioned in my empirical findings the Daewoo Express is not doing much advertising. The only
thing that is working for Daewoo Express as a promotional tool is the word of mouth. Its sales
staff is also working as word of mouth. The customers of Daewoo gossip about its services with
their friends and family. According to the survey conducted when customers of Daewoo Express
Pakistan were asked how they came to knew about Daewoo, 83.3% customers said friends &
family, 8.3 % customers said newspaper, 4.2% said cable TV and 4.2% said TV.
Direct Mail: Is the sending of publicity material to recipients of postal mail? There has been a
massive growth in direct mail campaigns over the last 5 years. Organizations can pay thousands
of pounds for databases, which contain names and addresses of potential customers. Direct mail
allows an organization to use their resources more effectively by allowing them to send publicity
[48]
material to a named person within their target segment. By personalizing advertising, response
rates increase thus increasing the chance of improving sales. Daewoo is not at all sending any
publicity material to the potential customers. This was found during my conversation with the
Daewoo management, also through the survey and interaction with the customers of Daewoo
Express.
d) Product:
“Defining the characteristics of your product or service to meet the customer’s needs.”
“A tangible object or an intangible service that is mass produced or manufactured on a large scale
with a specific volume of units. Intangible products are service based like the industry, transport
industry & the hotel industry or codes-based products like cell phone load and credits.”
The term "product" refers to tangible, physical products as well as services. Here are some
examples of the product decisions to be made: Now before analyzing the Daewoo’s product or
services, some things have to be cleared. Daewoo Pakistan is a service based company which is
operating in Pakistan for providing transport facilities to the people of Pakistan.
Daewoo Pakistan is offering three services in Pakistan which includes
Express bus Service
City bus service
Shuttle service
According to Daewoo Pakistan there customer is upper middle class. They expect good
and timely services with some extra advantages. They planned to position the market and
the company as number one in Pakistan. And somehow they managed to do so and they
are offering number of differential services like refreshment, pick and drop facilities,
punctual departures and arrivals, courteous hostesses and armed security guards. So as far
the product strategies are concerned they are trying to fulfill it by their best efforts.
According to the survey conducted people just want some more busses because they have
to wait a lot and sometime have to cancel their trip due to no seat available. Especially city
bus service is seriously affected. People want Daewoo in more cities of Pakistan to start its
services. And people also want that in busses there should be availability of toilet and health
care facility.
There are three level of product;
[49]
Level 1: Core Product: The level one concentrates on the core benefits of the product.
The core product of Daewoo is to provide transport facility out of city which it is achieving
through the Express bus service. It concentrates on providing scheduled journey facility.
Level 2 Actual Product: The strategy at this level involves organizations branding, adding
features and benefits to ensure that their product offers a differential advantage from their
competitors. Daewoo is offering extra features like refreshment pick and drop facilities,
punctual departures and arrivals, courteous hostesses and armed security guards which
others are not offering and as a result people travel through Daewoo.
Level 3: Augmented product: The third level of the Kotler’s concept of benefit building
with the product concentrates on what additional non-tangible benefits can offer. Daewoo
cares about its customers even after the end of the journey. If due to any negligence on the
behalf of Daewoo Pakistan any delay occurred in the timing of departure or arrival the fairs
are either fully returned or some percentage of it. And its customers will not be left helpless
they will be fully facilitated.
[50]
/ her department, he / she will make a proposal (with full justifications) for the approval of the
management. After approval for creation of the new post, same criteria for recruitment will be
followed Selection Penal will consist upon HR Head, Operations Dept. Head, COO and CEO.
However in case of recruiting Workshop Staff, the following parameters will be adopted.
1. Workshop will provide up to date manpower status to HR department. 2. Workshop will
send request to HR department for hiring any staff / worker with full justification. 3. After
netting approval from HR Head & CEO, workshop staff will conduct initial test and interview
of short listed candidates and send recommendation to HR department for verification for
original documents and final selection. 4. Final Selection will be made by the HR Head &
CEO. Moreover concerned workshop staff will be informed regarding selection of successful
candidates.
SCOPE: By adopting above said procedures, we will be able to recruit right person for the
right job and can net the required standard results. These steps will also be helpful to improve
company business because a good & hardworking employee can do work with sincerity,
devotion and dedication. These factors will definitely lead the company towards success and
prosperity.
II. Selection Management:
1. OBJECTIVE:
This policy pertains to selection of candidates for all open positions to be filled by DPEBSL. Final
selection of candidate(s) shall be made on merit by the interview panel. The HR Head will evaluate
the recommendations of the Interviewer established under this policy and finalize the selection of
the candidates.
2. ACCOUNTABILITY:
HR Head will be overall responsible for selecting best candidates for the suitable jobs for the
best interest of the company the selection of candidates for the position Deputy General Manager
and above will be recommended by the CEO and the Board of Directors will make appropriate
decision.
3. POLICY & PROCEDURE:
a) Appropriate selection procedures must be used for each post. Procedures may vary, at its
simplest this may involve a straight forward structured interview and skills testing.
b) Outstation candidates will be called on company buses by giving them complimentary tickets.
[51]
c) Interviews will be conducted at a suitable place with no interruptions.
d) After completion of the interviews a merit list will be prepared.
e) The candidates with the highest rankings will be given the first preference and will be offered
employment.
f) In case the number of recommended candidates exceeds the prescribed number of posts, the
HR Dept. will maintain a list of Reserve Candidates for future considerations
g) In case selected candidate rejects the job offer In case the Reserved Candidates will then be
offered employment.
h) Finally after mutual discussion with the concerned Manager the most suitable candidate with
high ranking would be appointed.
i) The Human Resources Department will inform the successful candidate along with offer letter,
mentioning briefly the compensation package and issuance of Appointment Letter subject to the
acceptance of the offer and clearance of medical test (in case of Bus Drivers).
CATEGORY SELECTION
Officer Security, Officers B/T, Jr. Executive, Interviewed by the Operations Dept. Head,
Sr. Executive, Legal Advisor H.R Head. Final Interview & approval will be
taken from the CEO.
Quantity Surveyor, Site Engineer, Architect, Interviewed by the H.R Head. Final Interview
Graphic Designer, Project Manager & approval will be taken from the COO.
Magazine Auditor Interviewed by the H.R Head. Final Interview
& Approval will be taken from Director
Marketing.
Assistant Manager, .Deputy Manager, Interviewed by the concerned HOD & H.R
Manager & Above Head. Final Interview & Approval will be
taken from concerned Director / COO / CEO.
[52]
• Job skills training, such as how to run a particular computer program
• Training on communication
• Team-building activities
• Policy and legal training, such as sexual harassment training and ethics training
IV. Performance management:
We at Daewoo Pakistan Express Bus Services Limited consider our Human Resources as our most
vital asset and we continuously strive to enhance the potential of our people. Being spread across
Pakistan we create job opportunities in remote areas of the country for people of various social
backgrounds. As an organization we see developing our employees, creating opportunities of
learning and a collaborative culture as vital part of our job at the Human Resources Division. Our
business allows our employees to work in a continuously challenging environment and develop
their skills whereby we reward and organically grow our talent right from the grass root level.
Going forward we look to strengthen our Performance Management system to ensure that we have
transparency and differentiation in our reward system based on contribution of each employee.
Our training department will be working extensively on working on individual training needs of
our employees along with various trainings to enhance the capacity of the organization. We are
focused on introducing best HR practices at DPEBSL to make it an employer choice in Pakistan
and strengthen our position as the market leader in our industry.
V. Compensation policy
Compensation includes anything the employee receives for his or her work. Employee
compensation may include the following:
• Health benefits & Retirement plans
• Stock purchase plans
• Vacation time and sick leaves
• Bonuses & Tuition reimbursement
RETENTION:
Retention involves keeping and motivating employees to stay with the organization. Compensation
is a major factor in employee retention, but there are other factors as well. The HR Head will be
responsible for arranging qualified candidates for all open positions, conducting interviews,
conducting reference checks, negotiating compensation and joining date, processing
induction/orientation of new employees and providing all necessary forms as per policy and
[53]
procedures. The Human Resources Department will inform the successful candidate along with
offer letter, mentioning briefly the compensation package and issuance of Appointment Letter
subject to the acceptance of the offer and clearance of medical test (in case of Bus Drivers). This
policy will apply to all the permanent/regular employees of the Company. The Compensation
Management Policies will cover all components of compensation paid to an employee including
salary related payments, and reimbursements of eligible allowances and benefits.
This Compensation Management section of HR Manual encompasses the following list of
policies:
Salary Management Policy
Monthly Payroll procedure
Overtime
Attendance Management
Leave Management
Financial Analysis
Financial ratios are relationships determined from a company's financial information and used
for comparison purposes.
I. Ratio Analysis of company report
Short term solvency ratios/liquidity ratios
Current Ratio:
Current Ratio = Current assets = 2.3
(2018) Current liabilities
Current Ratio = Current assets = 3.6
(2017) Current liabilities
Analysis:
The current ratio of the company has increased in 2018 as compared to 2017 but it is very minor
change. The current ratio of the company shows that liquidity position of the company is not very
bad. The company wants to increase its current assets
[54]
Quick Ratio:
[55]
Analysis:
The total debt ratio of the company has decreased in 2018 as compared to 2017 and 2016 so it can
be infer that the company is more relaying on its own financing with comparison to last year so
now it has less pressure of creditors.
Debt to Equity Ratio:
Debt to Equity Ratio = Total Debt = 0.07
(2018) Total Equity
Debt to Equity Ratio = Total Debt = 0.2
(2017) Total Equity
Analysis:
The debt to equity ratio of the company has decreased in 2018 as compared to 2017 and which
means that company is now more relaying on its own money so this shows that company is now
using its own money more efficiently that does not affect the company’s profit earning or earning
per share ratio.
Equity Multiplier:
[56]
Analysis:
The Interest Coverage ratio of the company has decreased in 2018 as compared to 2017. In 2018
company’s profit before interest and tax is decreased so that they are not able to pay so much as
them before.
Receivable Turnover Ratio:
Receivable Turnover Ratio = Sales = 11.44
(2018) Account receivable
Receivable Turnover Ratio = Sales = 26.6
(2017) Account receivable
Analysis:
The Receivable Turnover Ratio of the company has decreased in 2018 as compared to 2017 this
is why the company debt to equity ratio is increased because increase in debts borrowing and then
increase in credit sale which is not a good thing for company because now company is taking more
time to recover its debts as compared previous year. Now outsiders are using company’s finances
not the company.
Payable Turnover Ratio:
Payable Turnover Ratio = credit purchases = 17.5
(2018) Account Payable
[57]
Days sales in Payable = 365 = 20.8
(2018) Payable T/o Ratio
[58]
Analysis:
The capital intensity ratio is increased in 2018 as compared to 2017 so it signifies that now high
assets are required to generate the sale if one rupees.
IV. Profitability Ratios
Gross Profit Margin:
[59]
Analysis:
The Return on Assets of the company has decreased in 2018 as compared to 2017 and increased
in as compared to 2016 because now they are not using their assets efficiently and cost of finance
is also increased and they have increased the time for account receivable and reduce the time for
paying account payable.
Return on Equity:
Return on Equity = Net Profit = 0.12
(2018) Total Equity
Return on Equity = Net Profit = 0.10
(2017) Total Equity
Analysis:
The Return on Assets of the company has decreased in 2018 as compared to 2017 but increased in
as compared to 2016 because finance cost is increased, debt to equity ratio is increased so the
portion which is borrowed for business is must be paid so that return on equity is decreased.
Earnings per share:
Earnings per share = Net Profit = 48.1
(2018) No. of shares outstanding
Earnings per share = Net profit = 35.9
(2017) Shares out standing
Analysis
The return on equity is also effect on earnings per share because of return on equity, earning per
share is decreases in 2018 as compared to 2017 but increase so much as compared to 2016.
Book value per share:
[60]
Critical Analysis
[61]
Aforesaid list of behavior that the company considers unacceptable and any employee found
engaging in this behavior will be subject to disciplinary actions including warning / penalties etc.
Analysis of the macro environment of the organization
Political forces:
These are the Daewoo Group forces that tends to be altered by the influence of government on
the infrastructure of country. The political factors may involves environment regulations,
employment laws, tariffs, tax policy, trade restrictions, political stability and reforms. It is
noteworthy, that the charities needs to be included where a government are not willing services
and goods to be provided.
Economic factors:
The Daewoo Group economic factors or forces involves interest rates, inflation, and growth of
economy, cost of living, working hours, wage rate and exchange rates. Combining these factors,
it last greater and inevitable impact on organization.
Social factors:
The culture or social influence on certain businesses vary from country to country. It is
significant to consider these factors. The social factors includes safety and health consciousness,
various demographics, population growth rates and cultural aspects.
Technological factors:
Notably, Daewoo Group technology is one of the most important way of being competitive in the
highly competitive market arena. Not only this, it drives globalization, the factors includes
environmental and ecological aspects, and available services as well as products. An
organization should innovate and be compatible with the technologies.
Legal factors:
The Daewoo Group legal factors involves the certain laws and regulations which might effect on
the business operations of an organization. It also includes impending and current legislation that
tends to impact on the industry in areas including competition, employment, safety and health.
An organization should consider the influence of the national and international laws where the
organization would originate the business operations.
Environmental factors:
The environmental factors include all those factor lasting impact or influence, the surrounding
environment most likely determine environmental factors. The factors involves awareness of the
[62]
seasonal or climate change or terrain variation. The analysis of the environment including
internal and external elements is vital for organization since it impacts on the performance of an
organization.
Cultural Factors:
Culture is a set of values, perceptions, wants, behavior learned by a member of society from family.
Culture is a most basic cause of a person wants and behavior. We observed that in Pakistan, the
culture doesn't affect mostly on the service of Daewoo buses. And the company has not faced the
many problems to establish in this culture. Now the Daewoo Company is trying to start their
services in many cities of Pakistan in order to make the service common in between the people to
make its access and to increase their customers all over the Pakistan.
Personal Factors:
A buyer's decisions are also influenced by personal characteristics such as the buyer's age and life-
cycle stage, occupation, economic situations, life styles and personality and self-concept. The
Daewoo Company’s services may be affected greatly by the personal factors of people. If the life
styles are like in Islamabad, they like mostly to travel by the Daewoo bus services instead of the
people living in the small towns of the Pakistan. And there are many other personal factors like
people of high income, who don't take it much serious to travel this costly service of Daewoo
buses.
Psychological Factors:
A person buying choices are further influence by four major psychological factors, motivation,
perceptions, learning and beliefs and attitudes. In Pakistan, the most people think that the costly
things/services are good and the cheaper things/services doesn't satisfy their psyche. So as it is the
advantage to the Daewoo to have their maximum customers. Passengers like the hosting facility
provided in Daewoo buses very much.
Industry analysis:
Roads are the most important segment of infrastructure in any developing country. The rapid
development and economic wellbeing is dependent on the road networks. The road network in
Pakistan carries over 96 percent of inland freight and 92 percent of passenger traffic and are
undoubtedly the backbone of the economy. About 63% of our population lives in villages, the
topography of the region which consist upon hilly mountainous areas, far flung agriculture lands
and the productive resources are scattered all over the country. Roads provide easy and efficient
[63]
means of transportation. The total road-network in Pakistan is about 263,415 kms. consists of
9,324 kms. (3.53%) of National Highways and 2,280 kms of Motorways (0.87%). Strategic roads
and Expressways contribute 262 kms and 100 kms respectively i.e. (0.10%). The rest of the road
network contains provincial highways and the roads under respective local administration e.g.
Cantonment Boards, Municipal Corporations, Local Development Authorities, etc. About 40.9%
of total roads lie in the province of Punjab, followed by 30.9% in Sindh, 16.3% in Khyber
Pakhtunkhwa and 11.3 % in Baluchistan. Azad Jammu and Kashmir, being mostly hilly area,
shows a small proportion of just 0.6%, of road network. Following table shows the details of Roads
in Pakistan. Transport sector in general and road infrastructure in particular has profound and
enduring effect on the economic growth of Pakistan. NHA is contributing a vital role in improving
the quality of Pakistan’s road network which entails in improving the quality and standard of life
of the population. Pakistan is virtually bisected into two halves by River Indus. Eastern segment
is historically well developed. To bring the Western segment at par with the Eastern, NHA is
improving East-West connectivity through construction of numerous bridges across river Indus
and also across rivers Jhelum, Chenab, Ravi and Sutlej. The present NHA network comprises of
33 national highways, motorways, expressways, strategic roads. Current length of this network is
12131 kms. NHA existing portfolio consists of 79 development projects costing Rs 557 billion.
GOP allocated Rs. 50.7 billion for NHA’s development projects in PSDP 2012-13. The amount
included Rs. 26.1 billion foreign currency and Rs. 24.6 billion in local currency components.
To provide safe, efficient and comfortable urban transportation system in major cities of Punjab;
Government of the Punjab has established Punjab Metro bus Authority (PMA) for construction,
operation and maintenance of mass transit system with the technical support of M/s Ulasim a
Turkish based Company. The Metro bus System Line-1 from Gajjumata to Shahdara, in Lahore,
is the first initiative of PMA. Metro Bus Service has been started from February 2013 which
facilitate the passengers on 27 stations. The project cost is Rs.30 billion, 45 articulated buses are
running on the 27 kms long corridor starting from Gajjumata to Shahadra. About 1500 persons got
direct jobs and 1, 20,000 passenger are using Metro buses every day.
Daewoo express bus service is playing a very important and unique role in the overall
transportation sector of Pakistan. Although Daewoo service is in a monopolistic positioning the
market, but the proposed study will address the concept of marketing mix and it implementation
in view of Daewoo service. My findings suggest that thorough implementation and practice of
[64]
marketing mix will add value to the service and further strengthen its position with respect to
market share.
Different transportation industry run in the Pakistan like
Naizi Express
Faisal Movers
Volvo Buses
That provide transportation on different rates but Daewoo on the top in the Pakistan on the quality
and fare base.
Forecasting demand:
Pakistan is blessed with a very unique geo-strategic location, posing strengths and challenges for
its endurance. Pakistan has a reasonably developed transport infrastructure. Transport sector is the
backbone of any economy and acts as the catalyst for economic growth. Daewoo is committed to
develop and enhance a modernized transport and logistics services through favorable and alluring
macroeconomic indicators of Pakistan’s economy.
Responsible for controlling the bottom up information flow through synchronizing reports from
each department. Introduced Centralized Dashboard to update the running scenarios in contrast to
the history and the budgeted statistics to improve decision-making process. Ensure various timely
MIS’s for Buses and Routes evaluation, accurate trips scheduling, strategically reduce breakdowns
and accidents through tracking and preventive maintenance planning. Supervise Monitoring &
Control Room Staff for live surveillance of Buses and coordination with Call Center and EBS
staff. In line with the Top Management for several reports required with different parameters on
runtime. Leading WIMS project to develop Workshops Database completing end to end
requirements coordinating with IT department.
Customer analysis:
Organizational structure of Daewoo is much more co-operative with the customer as well as with
the work staff. They listen to the employees and gets important feedback to make their policies.
Our customers is committed with the organization because our organization delivers their products
to customers on time. We will strive continuously for the further improvement in our Services,
process and system, along with the betterment of our employees because this is our value.
Communication Process There is an open environment in the Daewoo which allows the employees
to communicate with each other. Before making the decisions the top level managers discuss it
[65]
with their supervisor or Daewoo Express employees. The organization allows the employees that
anyone of them can meet the general manager and Owner of the company if he is facing any kind
of difficulty. The organization conducts meetings with their employees to inform them about new
information, or complaints from customers or for lunching new product.
• Decision is not based on CEO. Customer feedback should also be taken into account.
They accommodate customers on the first come first serve basis. A customer can book his ticket
in the next turn after half hour if his desired time slot is not available.
Daewoo is the company which has successfully come up with Customer Relation Management
(CRM) concept in Pakistan. It is to provide value to the customers and fulfill their needs and
demands relating to the transportation. This concept allows the company to get better and better
with the coming time. 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.
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.
Our objective is to be the safest and most reliable transporter. To provide comfort to our customers
and to make their journey happy and safe.
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.
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
[66]
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.
Competitor analysis:
The competition among the firms help in identifying the lucrativeness of an industry where
companies are competing hard in order to maintain their power within the industry. The Daewoo
Group competition is moreover on basis of diversity, the development within the sector and the
barriers related to entrance in the market. The competitive rivalry is the analysis of the brands and
the product, its strengths and weakness along with the strategies, competitors and the share in the
market.
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. Daewoo Express is expensive when compared to all its
competitors in the road transport business.
STP:
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. Did not
consider itself worthy to challenge Maruti in small car segment. There were not enough players in
the mid-size segment, Daewoo thought that it would stand a fair chance in capturing this segment.
Daewoo found the mid-size market more alluring. Daewoo could not visualize that the small sized
segment would grow at a faster pace than the segment it decided to enter in. The mid-sized segment
got crowded with players like Opel, Maruti, Honda and Daewoo itself.
Targeting Youth & working Class.
Primary Targets should be the Metro Cities.
Cautious & One Step Approach.
[67]
The target group needs to be made aware of the existence and availability of the product through
promotion. Successful promotion helps a firm to spread costs over a larger output.
These four P's are the parameters that the marketing manager can control, subject to the internal
and external constraints of the marketing environment. The goal is to make decisions that center
the four P's on the customers in the target market in order to create perceived value and generate a
positive response. One of the most important decisions a marketing manager can make is about
branding. The value of brands in today’s environment is phenomenal. Brands have the power of
instant sales; they convey a message of confidence, quality and reliability to their target market.
Daewoo express bus service is playing a very important and unique role in the overall
transportation sector of Pakistan. Although Daewoo service is in a monopolistic positioning the
market, but the proposed study will address the concept of marketing mix and it implementation
in view of Daewoo service. My findings suggest that thorough implementation and practice of
marketing mix will add value to the service and further strengthen its position with respect to
market share.
[68]
Developing & ensure good Company relationships with relevant Government department,
Traffic Police, Transport Union & Bus Operators, Press media, etc.
Close liaison with government departments & senior government officials for approvals of
financial subsidy, different contractual matters and regulatory affairs.
Planning of City Buses on & off peak buses departure time and optimum utilization of
buses.
Effective marketing remains the hallmark of Daewoo as a company involved in supplying services
with a great emphasis on effective long-term strategies. Its services (traveling, pick & drop, cargo
etc.) will be promoted throughout the country using a network of bus-stations.
After developing their pricing structures and strategies, companies often face situations in which
they must initiate price changes or respond to price changed by competitors. In some cases, the
company may find it desirable to initiate either a price cut or a price increase. In both cases, it must
anticipate possible customers and competitor reactions.
Several situations may lead the firm to consider setting its price. One such circumstance is excess
capacity: In this case, the firm needs more, business and cannot get it through increased
improvement or other measures. It may drop its "follow-the-leader pricing"— charging about the
same price as its leading competitor—and aggressively cut prices to boost profit.
[69]
characteristics and situations of an organization which makes it more effective and efficient when compare
with its competitors.
It defines the areas in which the organization hold a command or is good at doing it and that provides the
organization and important capability. It can be a skill, a resource, image, market leadership, relation with
buyer or supplier or any other advantage relative to its competitors that fulfill the needs of the market by
providing the organization with a comparative advantage.
Brand name
Unique Service
State-of –the-art equipment
Professional management
Trendsetters (in transportation)
High traveler satisfaction
Extensive Employee Training Program
Strong brand portfolio
Huge market share
Quality products
Technology potential
State of art plant
ii. Daewoo Group Weakness
Daewoo Group Weakness refer to the situation in which the existing capabilities and the
resources the company holds are weaker or not sufficient compared to others organizations in the
market. In other words it means the aspects in which the organization is less efficient and needs
to improve in order to align with the market trends. As these aspects negatively affect the overall
performance of the organization by making it weaker compared to its competitors.
These are the factors that an organization lacks and does poorly in comparison to the
organizations operating in the same market at the same level. It is a deficiency or limitation of
resources, capabilities, skills that majorly affect the organizations effective performance.
Management capabilities, Facilities, financial resources, marketing skills and the weak brand
image can be the sources of weakness.
Lack of an extensive transport network
Overcrowding of vehicles
[70]
Insufficient marketing intelligence
Huge debts
Aggressive expansion
No training to sales staff
Huge discounts
iii. Daewoo Group Opportunities:
Daewoo Group Opportunity is an advantage and the driving force for an organization. It is the
convenient time or situation that is present in the environment and will help the organization in
achieving its goals. It is a factor that contribute positively towards the growth of the organization.
It is a condition existing in the external environment that allow the organization to take an
advantage of the organizational strengths, and help in overcoming the weaknesses and to neutralize
the threats present in the environment.
More buses, routes and a greater range of transport network
Better management of available resources
Innovative Marketing
Few players in mid-size segment
Regional Tie Ups
Tapping untapped market
iv. Daewoo Group Threats:
Threats are the factors that prevent the organization from the actualization of an activity. It is an
unfavorable situation that exist in the environment making it difficult for the organization to
achieve its defined goals. It is a situation that arises as a result of the changes that took place in
the immediate or distant environment, preventing the organization from maintaining its existence
and superiority in the growing competition and are disadvantageous for the organization.
All the environmental factors are consider as a threat to an organization that could affect the
efficiency and effectiveness of the organization.
[71]
Intensive disturbances on the roads
Non-availability of spare parts
Fluctuation in price of fuel and raw materials
v. Limitations of Daewoo Group SWOT analysis:
However there are certain limitation attached with it. The SWOT analysis is only a one stage of
the business planning process and do not provide the organization with an in-depth analysis or
research that could lead to a firm decisions. Apart from this it only cover the issues that are
definite and doesn’t priorities them. In addition to this it does not provide any solution or
alternatives decisions. As a framework, SWOT does processes a value but it doesn’t provide the
organization with any specific direction on how the key aspects can be identified. It significantly
rely on the capabilities of the manager that how effectively it can prioritize and determine the
most important element. Another limitation associated with Daewoo Group SWOT analysis is
that it provide equal weight to each factor regardless of their impact or relevancy.
Conclusion
Everyone is trying its perfect to become successful in the travelling market.
These services are excellent and supreme quality of Daewoo has promise with our customers.
Daewoo is an international brand and through its high quality and exclusive services, it has gained
a good repute in the local transport business. But it has been seen that Daewoo Corporation has
not lived up to its name as far as the establishment of an extensive transport network is concerned.
Passengers in most areas of Punjab and in all the other provinces of Pakistan have no access to the
Daewoo Bus Services. There is also a great need for an inter-city transport network of Daewoo in
metropolitans such as Karachi, Rawalpindi and Faisalabad etc.
Pakistan's biggest Inter-city bus operator, Daewoo Express is growing big time. Since its inception
in 1997, Daewoo Express has grown with the tick of clock. Today, it's offering international
standard transportation services from 60 stations across Pakistan. Over 500,000 passengers travel
across 60 stations of Punjab, Sindh & Khyber Pakhtunkhwa via Daewoo Express every month.
Furthermore, Daewoo Express also started operations from its 2nd Terminal in Lahore, located in
Defense Housing Authority, phase 5 which is part of the larger vision of company's management.
[72]
Recommendation
Once the options are developed and evaluated, the recommendation is made, on the basis of the
best suited option that offers the maximum value to the company and address the problem
succinctly. The recommendation is mad in away, that not only offers the solution the problem, but
also depicts the implementation process and the course of action that the organization needs to
take in order to be successful. A strong Daewoo Group recommendation must cover the key areas
as how the organization will implement the alternatives, what benefits will it receive if it
implement the when alternatives and what could be the cost, that he organization will need to
overcome or address, in order to effectively implement the alternatives. In addition to this, once
the alternative is selected, the recommendation needs to entail what change it will bring to the
organization like the 20 % increase in the Daewoo Group sales or profits or the sustainability or
increases in market share. These factors are important to be mentioned in the recommendation, in
order to make it strong and firm and allow the stakeholders/reader to connect the problem and
solution, leading to better understanding. Moreover, the recommendation also needs to entail the
plan B, that if for instance the results are not generated as per the plan, the second set of
recommendation must be incorporated in the plan, in order to allow the organization to quickly
shift to the plan B, in order to avoid the losses and sustain the presence of the company in the
market. Lastly, under the recommendation, it is important to incorporate the finding from the past,
so to make the given Solution more acceptable. A good recommendation is that, incorporates the
findings from the past. This is important, as it allows the reader and stakeholders to understand the
proven facts, and the pasts results such recommendation has harvested, leading to more
acceptability and also the determination of the plan that may be in need to be adopted so to avoid
the delays and resistance in the organization, while implementing the change.
Infect, the set of recommendation offered should also have a contingency plan, and the other course
of action for plan A and B both. This makes recommendation more firma and acceptable.
[73]
All in all, the recommendation include, what, why, how and whom factors. Thus is important as
to allow the organization. Shareholders to clearly understand what is required to done, how it is
required to do, who are the key player and how it will be implemented. In addition time required
has to be mentioned. This allows the stakeholder to understand and determine the time and
resources required to implement the plan effectively
[74]
Annexes
Financial Analysis:
[75]
[76]
[77]