A PROJECT OF

“Principles of Management”

ON

“IMPLEMENTATION OF
MANAGEMENT FUNCTIONS IN
PAKLITE ELECTRIC COMPANY

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EXCUETIVE SUMMARY

This project is made with the intention and goal of study the “Implementation of
Management functions in Paklite”. Paklite was established in 1987 and now their
authorized capital is 20million.To know about the implementation of these
functions, we collected the data through unstructured interviews, of top
executives, of PAKLITE Co. From this we get the information’s about the
implementation of functions. Their mission is to provide the customers with
maximum satisfaction. This project also contains the brief history of Paklite Co
and organization’s structure. They have lot of strengths but in the recent era they
are facing the problem of low profitability. This also shows the critical appraise
and recommendation for further improvement.

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 Introduction
PAKLITE was established in 1987 as sole proprietorship and started
manufacturing of 40-Watt Ballasts and Strip Lights of 4-Ft size. Soon after they
added 20-Watt Ballasts and 2-Ft Strip light in their line of production. Within a
short period, they started production of many other quality items such as Double
Light, Batten Light, Street Lights, and Office Lights etc. Due to expanding
business requirements, a company was formulated in 1994 and was named
PAKLITE Electrical Industries (Pvt) Ltd with a paid up capital of Rs 2 million,
which was further increased to Rs 8.6 million and it now stands for Rs 20 million.
They possess 21045 Sq Ft of land with 23151 Sq Ft covered area including ground
and 1st Floors.

We are providing complete range of electrical fixtures and ballasts through

countrywide distribution net work. Our market force is well- equipped with modern
facilities of communications as mobiles, fax and e-mail etc. PakLite is ISO 9001-
2000 certified Company due to its high quality of products.

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 Vision

In a world where technology increasingly touches every aspect of our daily lives,
we will be a leading solutions provider in the areas of healthcare, lifestyle and
enabling technology, aspiring to become the most admired company in our
industry as seen by our stakeholders.

They look forward for the satisfaction of customers and don't consider the profits.

They believe that

“Quality begins with customers

needs and ends with their satisfaction”

Mission

Their basic mission is to provide the “Lighting Fixtures & Ballasts” of International
quality at affordable prices for Pakistani customers and to safeguard them from
Multinational exploitation. They also look forward to explore International Markets
in order to generate “Foreign Exchange” for their country.

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 History
PAKLITE was established in 1987 as sole proprietorship and started
manufacturing of 40-Watt Ballasts and Strip Lights of 4-Ft size. Soon after they
added 20-Watt Ballasts and 2-Ft Strip light in their line of production. Within a
short period, they started production of many other quality items such as Double
Light, Batten Light, Street Lights, and Office Lights etc. Due to expanding
business requirements, a company was formulated in 1994 and was named
PAKLITE Electrical Industries (Pvt) Ltd with a paid up capital of Rs 2 million,
which was further increased to Rs 8.6 million and it now stands for Rs 20 million.

Quality Policy

Quality at PAKLITE means to meet or exceed customer requirements and

expectations, and to provide true value of their money. The Company recognizes
the vital importance of its customers. The goal of customer’s satisfaction requires
us to be flexible, not only accommodating to their needs, but also to delight them
consistently.

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 CEO
ceo

ELECTRICAL CO-
ORDIANTOR PRODUCTION ADVERTISING DIRECTOR
DIRECTOR OFFICER

ELECTRONIC
ENGINEER GENERAL
MANAGER

COMPLAIN
OFFICER
ASST GM

CNC OPERATOR

PRODUCTION
MANAGER

ASST

INV ACCOUNT FINANCE AMIN/HR

MANAGER MANAGER MANAGER MANAGER
ASST

ASST F.M RECEPTION (1)

OFFICE BOY (1)
ASST ACCT ACCT S.GUARD (1)
WATCHMAN (1)
OFFICER OFFICER COOK (4)
DRIVER (2)
CASH SWEEPER (1)
OFFICER
ASST
ASST ACCT ASST ACCT

ASST

INV CO-ORD FINISH

GOODS
STOREKEEPER
ASST
ASST. FINISH
STORE PURCHASE HELPER GOODS
KEEPER OFFICER STOREKEEPE
Dye
maker ASST R
foreman
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 Products
Following are the main Products of the Company:

 Strip Lights
 Channel Lights
 Industrial Lights
 Street Lights
 Highway Lights
 Flood Lights
 Office Lights
 High Bay Lights
 Canopy Lights
 Low Power Ballasts
 High Power Ballasts

STRIP LIGHTS

PakLite Slim Shaped Strip Light is most commonly used economical lighting
fixture available in 4ft, 2ft and 1ft sizes. Due to its low price factor it is titled by
“PL ECONO” and extensively used where initial cost is concerned.

CHANNEL LIGHTS

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Modern Way to the series lighting. PakLite semi covered light is a light to light
attachment system with built in channel. Give enormous look while installed in
series and beneath your production flows.

INDUSTRIAL LIGHTS

Durability and maintenance cost stand first. Industrial light is available in 4ft, 2ft,
single and double rods utility. Also available in stainless steel for tough
environment.

STREET LIGHTS

Traditional Lighting for boundary walls and uncovered passage areas. Quality is
priority that’s why its strong structure would last for long in tough weather.

HIGHWAY LIGHTS

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Make your project more lustrous example for others to follow. High way light
series is a dazzling, flickering and sparkling new product to make your project
more attractive and impressive.

FLOOD LIGHTS

Paklite Flood light series used with high power magnetic ballast to give
extensive light output for security purposes. PakLite quality fixture with
correct light distribution system would make flood light a boundary
watchman.

OFFICE LIGHTS

Paklite DP Series is a simple and easy installation surface fixture for direct ceiling
applications. Available in 1x4, 2x2 and 2x4 ft sizes to fulfill customer’s need.

HIGH WAY LIGHTS

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 High roofs need high bay lights. Presenting high bay light series, a style in
lighting designs that really differ. Especially for those lighting designers,
experts that really want feasibility, professional look and correct light
distribution.

PAKLITE BALLASTS

In the PakLite labs, the engineers have developed a new breed of ballasts to
make such lighting system that saves more energy, are more adaptable, and
deliver optimal lamp performance. The innovative, technology in our new
quality ballasts exceed expectations, and are like nothing else available. Our
Production line passes through a series of tests I-e; High Voltage test, High
voltage leakage test, low voltage test & impact test etc.

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 Our valuable target customers
 Shan Food Company
 Honda
 Master tiles
 Dawlance
 Bata
 Berger paints
 Service
 Super Asia
 Suzuki
 Unilever
 Pace
 Pakistan international airlines
 Punjab group of colleges
 Sonex sanitary fittings
 PEL
 Gul Ahmad
 Coca Cola
 Beacon House School System
 Fatima group
 Gharibwal Cement Limited
 Nishat mills limited
 Pak – American Fertilizer Limited
 University of Gujrat
 Gift university
 Waves
 Allama Iqbal International Airport
 Sialkot International Airport
 Toyota

Main competitors
 Philips
 Zoom Lights
 Sun lights
 ECO

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Organizational culture:

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 MANAGERIAL ETHICS AND CORPORATE SOCIALRESPONSIBILITIES

“Employees are the basis of our success.”

The highly skilled, committed employees of the PAKLITE and the work that they produce
form the basis for the company's success. This philosophy is at the heart of the value-
oriented and values-based personnel and social policies of the PAKLITE. For more than 15
years, this has been part of the PAKLITE corporate culture, which is based on trust,
tolerance, and the concept of "give and take”.

Working in the PAKLITE means meeting the demanding requirements of a premium

manufacturer - being enthusiastic about the brands and products, achieving results of the
highest quality, being willing to learn at all times, being flexible when it come to forms of work
and working times and, most of all, wanting to push the success of the PAKLITE further
forward in harmony with the model of sustainability. The company offers excellent
employment conditions in terms of salary and social welfare benefits, following its concept of
"give and take". This too makes the PAKLITE one of the Pakistan’s most attractive employers.

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 External environment
All outside factors that may affect an organization make up the external
environment.

Following are the factors the affects Paklite Company:

a. Customers

Paklite meet or exceed customer requirements and expectations, and provide true
value of their money. The Company recognizes the vital importance of its
customers. The goal of customer’s satisfaction requires being flexible, not only
accommodating to their needs, but also to delight them consistently.

b. Suppliers

Inputs prices are increasing consecutively, causing significant increase in

products prices. In this way end-consumer suffers, they stop to reduce buying and
ultimately company has less demand for its products and services. The increasing
price of inputs that includes Copper and Steel has resulted in the closing of a lot
of firms in Pakistan in the last few years. So it is a great threat for Paklite.

c. Economic satiation

Inflation rate is high in Pakistan which causes increase in cost of production and
decrease in profitability. This situation has a bad influence on paklite. Another
reason is high load shedding and strikes.

d. Political situation

There is no stability in political situation in Pakistan as every government has

changed rules and regulations according to their own desire. Industrial sector is
disturbed due to this situation because industrial sector has to change rules
according to government’s policy which badly affect the company.

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 Goals and objectives of paklite

 To become market leader in electrical fixtures.

 To provide high quality electrical fixtures at affordable prices to build
a long-term business relationship. In PIEL, the concept of quality
begins with customer needs and ends with customer satisfaction.
 To have fair profit volume.
 To acquire desirable market share, combating competitors in health
competition.
 To safeguard customer from market exploitation by presenting the
true picture of quality.
 To create a sense of belongingness and carefulness of the whole
society (Societal concept of marketing).
 To have 140 million sales for the year 2008-2009.
 To reduce the large market share of China made products

 They look forward for the satisfaction of customers and don't consider
the profits. Their basic mission is to provide the “Lighting Fixtures &
Ballasts” of International quality at affordable prices for Pakistani
customers and to safeguard them from Multinational exploitation.
They also look forward to explore International Markets in order to
generate “Foreign Exchange” for their country. There is little bit
discrepancy in stated and real goals. To achieve goals are not easy.
Good planning, better management and authentic controls mandatory
for achieving objectives. Sudden slumps in Pakistani economy have
compelled the investors to review the investing projects. Time-to-time
changes in economic policy have discouraged the investors, from
previous two decades.

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 Decision making at paklite

Using step-by-step decision making process help Paklite Company to make more
deliberate, thoughtful decisions by organizing relevant information & defining
alternatives. This approach enables them to better insure the chances of the
choosing the most satisfying possible alternative.

Following are the steps that help in decision making:

 Identify the problem

 Gather information
 Identify the alternatives
 Weights the evidence
 Choose from alternate
 Take action
 Review the decision

Decision making style

The decision making in Paklite takes place at upper level of company. The
Paklite has centralized management. Employees are not considered in
decision making process. Top management gives order to their
subordinates.
Paklite has large production process so they can’t involve their employees in
decision making.

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 Structure
Paklite has mechanistic organizational structure. It has rigid departments,
clear chain of command, narrow span of control & centralization.
Organizational strategic goal is to achieve competitive advantage over its
competitors. Two world-wide strategies are used to achieve competitive
advantage. One of them is used by Paklite Company which is cost effectiveness.
It states that “minimize your cost to maximize your profits”. Cost effectiveness
is often used in mechanistic structure.

STUCTURAL DIMENTIONS OF PEIL

Formalization
 
PEIL is an organization with not very high level of formalization. But there are
explicit job descriptions, numerous organizational rules, and clearly defined
procedures covering work processes, therefore job behaviors of employees are
structured at PEIL. And also the degree of formalization varies within this
organization
Specialization

Work specialization is the degree to which activities in an organization are divided

into separate jobs. PEIL uses high work specialization to efficiently make
products. Managers at PEIL see work specialization as an important organizing
mechanism but not as a source of ever-increasing productivity
Hierarchy of Authority

Paklite delegates authority to their managers. At the lower level the problems are
handled by the supervisor in production department, the supervisor has the
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authority to take the decision for the betterment. But in the upper level
of management there is no delegation of authority.

Centralization

The management structure for operation possesses both characteristics

of centralization and decentralization. Strategic decisions are made by top
management and middle management tries to achieve targets set by the top
management. As a whole it is more centralized. Any worker, any manager can
share his problem with top-level management. There is no restriction about that.

Departmentalization

Paklite have nine different departments which are following:

 Production department.
 Sales department.
 Purchase department.
 Finance department.
 Marketing department.
 R & D department
 Human Resource Department
 Quality Control Department
 Inventory Department

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 SWOT Analysis
In SWOT Analysis we check the strengths, weaknesses, Opportunities and the
Threats of the organization which is helpful to make the proper strategies for the
organization.

SWOT ANALYSIS OF PAKLITE ELECTRICAL INDUSTRY:

SWOT Analysis of “Paklite Electric Company” involves two type of analysis.

I. Internal Analysis
II. External Analysis
Internal Analysis
While doing the Internal Analysis of Paklite Electric Company we will check their,

 Strengths
 Weaknesses
External analysis
External Analysis involves the analysis of the External Environment Of the
organization. In the External Analysis Of Paklite Electric Company we will check
the,

 Opportunities
 Threats
STRENGTHS
PAKLITE has a lot of strengths. The detail description of these strengths is as
under,

1. Complete Range of Fixtures and Ballasts

Paklite is providing complete range of Electrical Fixtures and Ballasts through

countrywide distribution network.

2. Well Organized Distribution Channels

They have well organized distribution channels in the whole country. Their
products are available from Karachi to Khyber. They have their agency
holders in almost all the cities of the world.

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3.Strong line of Production:

They have strong Production Line including

 Strip Lights
 Street Lights
 Batten Lights
 Diffuser Lights
 Industrial Lights
 Road Lights
 Ballasts ranging

4.Imported Machinery
They have heavy imported machinery which is very helpful for them for the
reduction of cost.

They have imported Slitting Mach, a machine to cut coils and also the
machinery for Molding Department has been imported from the modern
countries.

5.Well Organized R & D Department

The Research and Development Department of Paklite is working very well.

They are continuously trying for the improvement of their existing products.
They are working on the modern production techniques so they can be able to
reduce the cost and increase the profitability

6. Highly Qualified Professionals

They are a team of highly qualified professionals. Qualified, skilled and
experienced employees are working in each and every department of Paklite.

7. Manufacturing of Dyes
They have a special department in which they produce the Dyes to manufacture
their product. So they are able to produce most of the dyes which they are using
in the manufacturing of their different products under the same roof. This is very
fruitful in order to enhance the self-sufficiency of the organization.

8. Approvals and Certificate

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 The products of Paklite are only one in their field which is approved by PSI. Their
Ballasts are also tested and certified by PCSIR (Pakistan Council of Scientific and
Industrial Research)

9.Loyalty for the customers

They have loyalty for their customers and vendors. They are customer oriented,
they believe on the strategy of customer pull. They make those products which are
liked and demanded by them.

10. Unipolicy for the price:

They have uni-policy for price in the whole country. Their products will be
available in the whole market at the same price no matter from where they are
being purchased

WEAKNESSES
Paklite Electric Company like all other organizations also has some weak points.
The detail description of the weaknesses of the Paklite is as under:

1. Lack of advertisement

The main weakness of Paklite is the lack of advertisement. Advertisement has got
much importance in today’s world. It is very difficult for any organization and even
for a product to get the proper market shares without advertisement. Because of
the popularity of the product people will be attracted to buy it. So, this will
enhance the sale of the product which is very important for the organization in
order to increase the profitability.

2. No Brand Power

One of the main weaknesses of the Paklite is that they have no Brand Power.
People are less aware of their brand name. The brand power plays a very
important role for any organization. A firm with strong brand name finds it very
easy to attract the customers in the market

3. No Exports

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 Another major weakness of the Paklite is that they have no exports. They have
products of International Quality which can be exported to other countries in
order to earn foreign exchange.

Opportunities
Paklite Electric Company has following opportunities in the external and internal
environment.

1. Opportunity of Globalization

Paklite has the opportunity to go to the globe. They have the global market to
expand their business. They can do so with the help of export in the international
market. In this way, not only they can earn profit but also the foreign exchange for
the country.

2. Less number of competitors

The number of competitors of Paklite Electric Company is low. Because in

Pakistan a very small number of companies are making electric fixtures and
ballasts. The main competitor is Philips which is multinational. So, a very
small number of companies are competing with them. Thus it is an opportunity
for them to come forward and capture the market with their better planning
and strategies.

3. Opportunity of atomization and innovations

Paklite has the opportunity to bring variation in the existing products and also for
the manufacturing of new products. They can also adopt atomization which will be
helpful in reducing the cost of production.

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 Threats
Followings are the important threats prevailing in the environment for Paklite
Electric Company.

1. Increasing Price of Inputs

The main threat for Paklite is the increasing price of inputs that
includes Copper and Steel. Increase in the prices of Copper and steel has resulted
in the closing of a lot of firms in Pakistan in the last few years. So it is a great
threat for Paklite.

2. Low profitability

The profits of Paklite Electric Company are decreasing for the last few years
which is an alarming situation for the company. The profit is the primary objective
for every organization and also important for the survival and growth. So it is a big
threat for Paklite.

3. Brand power of the main competitor

The brand power of their main competitor i.e. Philips is a big threat for Paklite.
The awareness of the people about the products of Philips is affecting their
business to a great extent.

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 RECOMMENDATIONS

Our recommendations for Paklite Electric Company are as follows.

1. Advertisement

Paklite should increase the advertisement of their products. Advertisement has got
great importance in today’s world. It is very difficult to sell the product without its
advertisement. The advertisement strategy of Paklite is not satisfactory. So, if they
want to increase their sale and profits they must do better advertisement of their
products. Both Print Media and Electronic Media can be important in this regard.

2. Production of Aluminum Based Products

Paklite should focus on the production of Aluminum Based products instead of

Copper and Steel based products so that they can avoid the threat of increasing
values of Copper and Steel.

3. Exports of the Products

Paklite is producing the products of international quality but they aren’t exporting
their products. They should export their products to other countries. This will
increase their profitability and also they can earn foreign exchange.

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 4. Aggressive Policy:
Paklite Electric Company should adopt Aggressive Policy in the market. This will
prove helpful for their survival and growth in the market.

5. Diversification:
Paklite is dealing in the same line of production from the last few years. The
diversification and innovations in their products are not up to the mark. Although
they have strong line of production but Diversification has got great importance
now days. So, Paklite should emphasis on the diversified and innovative products.

6. Increase in Brand Power

The Brand Power of Paklite Electric Company is absent. Brand Power is very
important for the success of any product and organization. So, we recommend
that they should also give importance to their brand image if they want to get
success in the market.

7. Atomization
This is the era of atomization. It is the best strategy to adopt in order to decrease
cost. So, Paklite should also adopt atomization in some fields of production.

8. Import of Technical Information

Paklite should import technical information from the developed countries instead
of importing heavy machinery. Their own R & D can work on this technical
information in order to make the machinery and new and innovative products.

9. Globalization:
They should set business unit around the globe for increasing their market growth
and future profits.

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