Service Industries Limited: University of Gujrat

Service Industries Limited
INTERNSHIP REPORT ON
Servis Industry limited
Internship Report submitted to the Faculty of Management & Administrative Sciences in Partial Fulfillment of
the Requirements for the Degree of Master of Busi
ness Administration.
Program & Session MBA 2012 to 2015
UNIVERSITY OF GUJRAT
Date of Submission
13/09/2013
Name of Program Coordinator ___________________
Signature of Program Coordinator_________________
Page 1 Master in Business

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Acknowledgement
“IN THE NAME OF ALLAH, THE MOST GRACIOUS AND MERCIFUL, THE BENEFICENT”
First of all I would like to bend over my head in front of ALMIGHTY ALLAH. It was HE who direct me in every
stage of my life, and who bestow me with capability to accomplish the best and helped me to conquer every
attempt and difficulty in every field of life. Without His help, we cannot accomplish any objectives in our lives.
Thanks are also due to last Prophet HAZRAT MUHAMMAD (peace be upon him), through whom Almighty
Allah communicated knowledge to mankind and who is forever a torch of guidance and knowledge for whole
humanity.
I extremely thank full to my honorable teachers who helped me to complete my report as it is compulsory part
of the Master in Business Administration because perhaps I would not be able to write such a report without
their help and cooperation.
Especially I am very thankful to the Head of Human Resource department Deputy HR Manager of Servis Mr.
Saleem Nawaz who organized my internship program. I am very thankful to my supervisors who help me in
my learning activities during my internship.
Finally, I am very thankful to my family and my sweet friends for their prayers, love and encouragement and
their faith in my abilities. The completion of my work is the result of their co-operation and moral support.
Without their co-operation and support, a project like this is difficult at best.
Thanks All!
Table of contents

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2.4.6. Internship activities correlated with classroom knowledge 53

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3 Conclusion of the report 54 to 57
3.1 summary of key Conclusion derived from internship experience 54
3.2 General observations about Servis 54
3.3 SWOT 55 to 57
4 Recommendations 58
5 References 59

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EXECUTIVE SUMMARY
The Servis is Pakistan's famous shoes brand. Servis is Pakistan’s largest footwear manufacturer and exporter.
The Servis is founded by Ch. Nazar Muhammad, Ch. Muhammad Hussain from Gujrat and Muhammad Saeed
from Gujranwala more than 50 years ago. In Lahore they started their business of shoe manufacturing by
installing a manufacturing plant in1954.The Service has it’s headquarter in Lahore and factories in Gujrat and
Muridke. Now company is involved in making worldwide shoes, tyres, tubes and rubber production facilities.
Service industries have strong culture. With a strong emphasis on product quality, SIL has built both domestic
and international recognition of company’s products. The main purpose of the internship is to gain and
knowledge from practical work, prepare and submit the report in UOG because it is the partial requirement of
my degree and it will give me benefit in my future plans. It has different strengths and weaknesses but also
have threats and opportunities in market. Report findings are as follows. That there are many problems that
industry is facing. Some problems are:
• Lack of new products.

• Lack of promotional activities.
• Not a fashion oriented brand.
• Functional problems in departments.
• Centralized decision making.
I have performed a number of activities in Service Industry during my internship period.

Some are as follows:
• Employee Status Updating.

• Approving Leaves.
• Entering miss timing of employees.
• Record of Dead Files.
• Calculate retail tax amount.
• Record the import details.
• Entering personal information of workers.
• Entering receipt invoices.
• Posting.
• Issuing warning letter.
• Issuing dismiss letter.  Making charge sheet.
Company should make its distinctive position in such area of competition by providing more effective services
so that it will get succeeded and earn more profit than their competitors.

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Part-I

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2. Main body of report
2.1. Introduction of study:-

All the students of Master of Business Administration are required to spend some weeks in any financial
institution/ commercial banks for getting practical experience. I choose Service Industry Gujrat for getting the
practical exposure. Service Industry Limited (SIL) is publicly limited company listed on the stock exchanges of
Pakistan and the largest manufacturer of footwear tires and tubes for two wheelers and has been the largest
footwear exporter of the country for last 10 years.
Servis industry is today an efficient, progressive and customer oriented organization. Servis is also involves in
many Social activities, it has been a regular contributor to community welfare, charities, and causes. It has
developed a wide range of consumer products, to enhance business and accommodate to the different
segments of society.
Scope of the study:-

Servis industry Limited is one of the oldest and well reputed organizations in Pakistan. The scope of my work is
based on observation service industry, but due to shortage of time, I worked in special department of
industry. So, I decided to work in accounts department of industry. There is not too much work in accounts
department so I worked in HR department as well. It was a good opportunity for me to involve in Finance and
HR Department of a huge and well established industry.
Purpose of study:-
Servis Industry is a large and well established organization in Pakistan. So, I prefer servis industry in order to
set knowledge of this organization for the internship. The purpose of study is to functioning of industry to
analyze the overall performance of Servis Industry Limited and to analyze the theoretical application of
finance. The main purpose of the study is to gather the relevant information to compile internship report on
Service Industry Limited Gujrat and practical operations of the organization.
My aims of doing internship are:
 To work practically in the organization and correlate my class room knowledge with reality.
 To acquire practical experience for my future career.
 To get awareness about the management work.
Objectives:-
There are some objectives behind this study. My objectives of doing internship are:

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 It is the requirement of MBA course that all students of MBA have to spend 6 weeks in any organization to
get practical exposure. So, it is the partial requirement of my degree to do internship.
 To develop skills and techniques that directly applicable to my career.

 Check that how bookish knowledge is implemented in reality.
 To learn the practical activities of finance department.
 To get some practical exposure for job.
2.2. Overview of Organization
2.2.1. Brief History:-

Service Industries Limited (SIL) is a public limited company listed on the stock exchanges of Pakistan. It has
annual revenues of about PKR 12 billion ($130 Million) and is the largest manufacturer of footwear, tyres &
tubes for two-wheelers, and has been the largest footwear exporter of the country for the last 10 years.
The company employs more than 6,000 people in its facilities located in Gujrat and Muridke and exports its
products primarily to Germany, Italy, France and the UK. With a strong emphasis on product quality and
innovation, SIL has built both domestic and international recognition of company’s products. The visionary
leadership and hardworking management team has led SIL to hold this top position in the business arena. The
Board and Management comprises of:
Chairman
Mr. Ahmad Javed
CEO
Mr. Omar Saeed
Board of Directors
• Mr. Arif Saeed, Mr. Omar Saeed, Mr. Ahmad Javed, Mr. M. Ijaz Butt, Mr. Hassan
Javed, Mr. Ahmad Shahid Hussain, Mr. Hamid Hussain, Mr. Riaz Ahmed and Mr. Manzoor Ahmed
Group Executive Committee
• Mr. Arif Saeed, Mr. Omar Saeed and Mr. Hassan Javed

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Management Team
• Mr. Ghulam Muhammad (GM SIL Gujrat Factory), Mr. Adnan Wasal (GM SIL Muridke Factory), Mr.
Jawwad Faisal (Chief Commercial Officer), Mr. Sohail Chaudhry (GM
Domestic Sales), Mr. Muhammad Usman Amjad (Chief Financial Officer), Mr. Hassan Ehsan (Head of
Exports) and Mr. Hyder Chaudry (Head of Human Resource
The Servis Industries is Public Limited Company Incorporated as a Private Limited Company in 20 th March 1957
under the Companies Act 1913 and converted into Public Limited Company on 23 rd September 1959, having its
registered office located at Lahore.
The story of ‘Servis’ begins with a group of friends - young, energetic, fresh from college who established
Service Industries more than 50 years ago. These young men, named Ch. Nazar Muhammad (Late), Ch.
Muhammad Hussain (Late) – both from Gujrat district and Ch. Muhammad Saeed (Late) from Gujranwala
District, started business in 1941 at a small scale in Lahore. At that time, they were only manufacturing
handbags and some other sports goods. Within years their business flourished remarkably and they were
supplying their products to every corner of India at the time of partition.
In 1954, they installed a shoe manufacturing plant at industrial area Gulberg, Lahore. This started production
in the same year. The industry started manufacturing various types of shoes. Later management shifted the
factory from Lahore to Gujrat. Service Sales Corporation (Pvt.) Ltd. the Group’s marketing company was
established in 1959. Humility, fairness, and respect were the values close to the heart of these founders and it
were these values that led to phenomenal success of the Group over the years.
Today, the production side of the company has flourished into Service Industries Limited (SIL) which has
world-class shoes, tyres, tubes and rubber production facilities in Gujrat and Muridke. SIL is also the leader
exporter of footwear. Service Sales Corporation (Pvt.) Ltd. (SSC) is today Pakistan’s leading footwear retailer
that has set new record standards and created new benchmarks in the retail industry.
A humble venture of friends has grown into a Group that makes a difference in lives of millions of people
every day today.

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2.2.2. Nature of the Organization:-
Service Industries Limited (SIL) is largest manufacturer of footwear and tyres & tubes in Pakistan. Servis Group
is one of the most respected corporate citizens of the country and has a rich heritage spanning over half a
century. Today the Group is Pakistan's largest footwear manufacturer and exporter with interests in wholesale
and retail sectors. With a growing portfolio of brands and a nationwide network that touches millions of lives
every day, Servis is one of the leading brands in the country. The Service factory is producing the following
products:
 All categories of leather footwear and sports shoes.

 Canvas shoes of Men, Women and Children.
 Rubber Sandals and Sleepers.
 Safety shoes and Footwear for defense force.
 Bicycle tyers and tubes.
 Car tubes.
 Motorcycle tires and tubes.
The company's registered brand name is 'SERVIS'. It is the largest exporter of footwear from Pakistan and has
maintained its top position. Servis footwear are available throughout
Pakistan at fixed price through a chain of 258 retail stores and 15 whole sale depots run by Service Sales
Corporation Lahore (Pvt.) Ltd. In addition to company's own retail stores, thousands of shoe dealers / stockiest
are selling Servis Shoes in the country.
Servis has been a trend setter in footwear fashion in Pakistan. It introduced colorful joggers for the first time in
Pakistan in early eighties. Product innovation has been an important part of Company's Marketing Strategy.
New product range is offered twice a year, at the beginning of summer and winter seasons.

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Overall revenue of the company is increased by 5% in 2012. The tyre and tube sales increased by 30% due to
increase in sale the service tyre got the “Best Export performance Award” Whereas the footwear sale showing
declining trend during the year and it is decreased by 9%.This shows that the increase in sale of Tyre and Tube
division is much more than footwear. Company is in profit due to its tyre and tube sale.
2.2.3. Reward honors and Success stories:-

Servis Industries Limited (SIL) is a public limited company listed in Karachi and Lahore stock exchanges. It is
purely engaged in the manufacturing and sale of footwear, tyre tube and technical rubber products.
1. Celebrating 50 Years of Happiness:-

Company has celebrated its 50 years of great success. Now it is leading footwear brand and retailer in
Pakistan. The Company started its journey with single retail store and now it has more than 400 outlets all

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over Pakistan and progressing internationally. It exports products to Europe, Middle East and many other
countries.
2. FPCCI Trophy:-
Servis Company was awarded with “Best Export Performance Award” by Federation of Pakistan Chambers of
Commerce and Industry (FPCCI) for increase in sale of tyre and tube.
3. Best Vendor Performance Award:-

In recognition and acknowledgement of exceptional performance and exemplary service,
Atlas Honda Limited recently awarded Servis Tyres with the “Best Vendor Performance Award” for 2012.
4. ISO 9001, certified company:-

Servis is a member of Satra, so they follow Satra guidelines for quality check of shoes.
Service got the ISO certificate because they are fulfilling their quality requirements.
2.2.4. Product lines of Service:Two main
product lines of Service are:
 Footwear
 Tyres and tubes
Footwear Products:-
Service is leading footwear brand and retailer. Service is continuing its journey on the road to
“feel good” by connecting three generations in the thread of happiness. Service Sales Corporation is
responsible for marketing the footwear products in local market. Service is producing variety of footwear
products. Following are registered Brand in this product line:
DON CARLOS:-
DON CARLOS is the first men’s mega brand in Pakistan. It is style leader the men’s
in the footwear industry. The brand features fine craftsmanship and
distinctive design with hand-crafted details cutting-edge quality. It and
includes casual and dress shoes along with sandals.
CHEETAH:-
CHEETAH is Pakistan’s leading sports and performance
footwear brand. It has come to symbolize the

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sportsman’s spirit and passion having no parallel on the ground. It is known for its durability and comfort and
has won brand winning award in 2008. The brand offers a variety of sports shoes including Cricket, Football,
Tennis, Hiking, Outdoor and Basketball. The brand
also includes sport and casual shoes for women as
well.
CALZA:-
CALZA is a brand that has its inspiration rooted deep
in Pakistan and its culture. The unique style and
amazing comfort of CALZA have made it Pakistan’s
most favorite slipper.
It is a brand for the man who accepts challenges for

everyday life with a smile; motivated for more but doesn’t forget their background. Their product range
includes affordable slippers, shoes and sandals for wearing in different weather conditions, but mostly used in
summer.
LIZA:-
LIZA is the most acknowledged women’s footwear brand in Pakistan. It is a
casual and comfort wear shoe, for different occasion and moods of a woman
with a happening lifestyle. The product includes sandals, and shoes. It is slippers
stylish, lightweight and comfortable brand for smart adds a unique flair of look and
style to your walk.
SKOOZ:TOZ:-
SKOOZ puts a whole new spin on student’s life with comfortable and durable shoes that are perfect for fun on
and off the schoolyard. The product range covers school shoes for boys and girls.

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TOZ is a brand that brings a colorful world

packed full of fun and adventure for kids. It
includes shoes for boys and girls with vibrant
color and attractive
variety
styling. TOZ product line containsof sandals,
chapels and close shoes for kids. Extra care is
required for ensuring fit, comfort and safety in
product design.
SOUL COLLECTIONS:-
Soul Collections is premier ladies fashion footwear brand. The brand is based on fashionable, trendy and
affordable ladies footwear. The product line includes shoes for casual, formal and party wear. It is for those
ladies who prefers graceful appearance and to look good, stylish and beautiful.
Tyres and Tubes:-

Service Industries Ltd is the pioneer in tyres and tubes
manufacturing in Pakistan since 1970.Servis is marketin leader
bicycle tyres and tubes and hold solid share of motorcycle tyres
and tubes market. Servis is major supplier of tyres and tubes to
Japanese motorcycles manufacturers like HONDA, YAMAHA and
other local motorcycle assemblers in Pakistan. The major brands
of Tyre and Tube for auto and bicycle are as follows:
 Long Life (Auto and Bicycle)

 Long Life Load (Bicycle)
 Cheetah (Bicycle)
 Cheetah Plus (Auto and Bicycle)
 Hi-Speed (Bicycle)
 Super Star (Bicycle)
 Racer (Bicycle)
 Golden Star (Bicycle)
 BMX Silver (Bicycle)
 Super Trail (Auto)
Other Products:-
Following are the some other products being produced at Service Industry Limited Gujrat:

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 IV Tube (Surgical)
 Gas Mask (Defense)
 Auto Parts (Auto)
 Hand Grenade Body (Defense)
 Mine Body (Defense)
 Tank Track Pad (Defense)
 Bogh Wheel (Defense)

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 Footwear for Defense Forces (Defense)
2.2.5. PESTLE Analysis:-
PESTLE analysis is concerned with macro environmental

framework used to understand the impact external
of factors on strategic development of a
business. These external factors are
political, economic,
social, technological, legal
and environmental.
Political Factors:-
The political situation of Pakistan is not satisfactory. Due to the rapid change in the Government every
government sets its own new trade policies.
Following are the effects of political system on Servis:
 High taxation on growing industries

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 Political interference does not leave independence in work.

 Trading policies will change.
 Change in complexion and composition of legislatures.
 Government’s policy in the economy.
 Terrorism.
Economic Factors:-
The economic condition of Pakistan can also affect the foreign investors increasing inflation rate make the cost
of production high and thus reduce the profit margin of the investor. Some economic factors that affect the
footwear industry are as follows:
 Increasing energy and input prices leads to an increase in cost of production that influences the expected
production of the industries and the exports.
 One of the problems in growth of service industry is higher energy prices.

 Inflation and interest rates also affect the industry.
 Skill level of workforce.
 Staff cost is very heavy.
 Heavy operating cost occurs in daily working.
 One of the economic factors is changes in exchange rates.
 Labor costs.
 Economic growth rate.
 Efficiency of financial markets.
Social Factors:-
In Pakistan the life style of people is changing with a fast pace. The change in the lifestyle and needs in
different demographics also affect the demand of customers.
Following are the social issues faced by Servis:
 Consumer attitude and demand of products.

 Changing life style.
 Class structure.
 Demographics.
 Media vies of industry.
 Cultural restrictions to save money.
 Entrepreneurial spirit in people.
 Buying trends of people.

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Technological Factors:-
These factors pertain to innovations in technology that may affect the operations of industry. The technology
can cause tremendous in quality and quantity of products and this affect the market position of company.
 Competitor technology development is the biggest problem faced by industry.

 Inadequate communication infrastructure.
 Technology’s impact on product offering.
 Lack of networking facilities.
 Online selling facilities.
 Research and innovation.
Legal Factors:-
Legal factors relates to law, regulation and legislature that affect the way the industry operates. Service
industry is a legal public limited company. It is fulfilling the entire legal requirement for becoming the public
limited company. It is also satisfying all the legal requirements of workers e.g. all the workers are associated
social security and they are getting every benefit which is legally required by Government of Pakistan.
Following are the legal concerns:
 Restrain on import material.

 Restrain on export.
 Tax regulations.
 Quota policies.
Environmental Factors:-
Environmental factors relates to ecological and environmental aspects that will affect the demand for service
products and affect their business operations.
 Impact of adverse weather.

 Environmental regulations.
 Ecological regulations.
 Geographical changes.

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2.2.6. Contribution of Organization towards economic development:-
SIL is contributing a lot of towards economic development. Service industry in Gujrat remove the
unemployment in Gujrat and other cities providing jobs also improve the living standard of people. It is
providing job to 6000 people. Due to increase the revenue of industries the contribution towards economic
development also increases.
Service industries export is its main source of generating revenue and also pay healthy amount of tax to
government every year. It provides internship opportunity to number of students throughout the session.
Service is also contributing to social development.
Corporate Social Responsibility:-

Corporate Social Responsibility (CSR) is the commitment of corporate entity to participate in economic and
social development of its employees and society. Service believes that CSR is more than taking up initiatives; it
is about solving problems that will improve lives in our community. IL Practices CSR through the followings:
 Occupational safety and health:

Service tailored their processes in a conscious effort of providing safe, injury and illnessfree environment
to their employees.
 Loan facility:
Service Industry provides loan facility to their employee without charging interest rate.  Flood relief
operations:
Service industry and its employees acted collectively and participated in flood relief operations.
 Consumer protection measures:

Service is committed to producing quality products which exceeds our customer’s requirements which
help them to achieve their foremost concern i.e. customer satisfaction.
 Employment of female and special person:

Service encourages the employment of females and special person. They have several females are
working in various roles. Moreover, a separate production line in Gujrat factory is managed by females
only.
 Business ethics and ant corruption measures:

Service is renowned for quality and highest principles of business ethics. They have a commitment of
conducting their business with honesty, integrity and in full compliance with applicable laws and
regulations.

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 Energy conservation and environmental protection measures adopted to protect the environment.
 Contribution to community welfare, charities and causes  Donations.

 Sponsorship.
 Free shoes.

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2.3. Organizational Structure:-
The entire organizational authority is represented by the help of Organizational Chart, which is headed by a
Resident Director. The management structure of SIL is as follows:
2.3.1. Organizational Hierarchy Chart:-

General Manager
Costing
Maintenance Commercial H.R
Planning
Factory manager
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MCTT CTT
MC BC Tire
MC Tire BC Tube
Tube
2.3.2. Number of Employees:-
Company has started the operations with few numbers of employees. Now it has become a group of industry
and accounted in large organizations of Pakistan.
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It currently employs close to 9000 people in its following companies:
 Service Industries Ltd

 Service Sales Corporation (Pvt) Ltd.
 Servaid Pharmacy (Pvt) Ltd.
The total numbers of employees related to footwear & tyre division are more than 8000 out of which more
than 5000 are working in Gujrat factory and 3000 are at Muridke factory remaining at head office. 2.3.3. Main
Offices:-
The Service factories have their Head Office in Lahore. Their finance, sales and marketing departments are also
working at head office.
Following its main offices:
1. Service Industries Limited

Head Office:
Service Industries Ltd,
Service House, 2 Gulberg, Lahore, Pakistan
Factories:
G T Road, Gujrat
Sheikhupura Road, Muridke, Pakistan
2. Service Sales Corporation (Pvt.) Ltd. Head Office:

Service Sales Corporation (Pvt.) Ltd.
EFU House,6-D Main Gulberg, Jail Road Lahore, Pakistan.
3. Product Development Center:
Service Sales Corporation (Pvt.) Ltd.
Office No.204 Siddiq Trade Center,
Gulberg, Lahore, Pakistan.
4. Shoe Planet Private Limited:
Corporate Office Shoe Planet,

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Servis House, Gulberg, Lahore, Pakistan.
5. Servaid Pharmacy:
Servaid Pharmacy (Pvt.)Ltd.
6. UAE Offices:
Service Sales Corporation
Murshad Bazar, Deira Dubai,
UAE.
2.3.4. Introduction of all Departments:-
Service has divided its departments according to their functions. Each department is responsible to handle
different tasks. It has number of employees being headed by a department’s head, which is mostly a manager.
The departments are inter-related to each other. Thus the performance of one sector affects the activity of
others. Managers have the authority, so they are responsible for group performance. Following is the list of
departments working at Service Industry Ltd Gujrat.
1. Human Resource Department:-

The HR department plays vital role in the prosperity of organization. In SIL Gujrat the HR department develops
job description, organizational chart, resolve conflicts among employees and define responsibilities and
authorities of employees, who manage, perform and verify their work accordingly. The HR department is
responsible to provide the manpower to the all other departments and training and development of
employees. The department also receives demand of employees from the department heads where the
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employees needed. The HR staffs evaluate the job with the head of department and after approval by the
general manager and then the HR assistant manager appoint the person.
2. Industrial Relation Department:-

The department maintains the record of workers like HR department. In the Service Industries Ltd Gujrat
record of staff is maintains by HR and record of workers is maintains by IR department. This department
arranges the classes of newly appointed workers. It takes necessary actions against complaints to settle down
the disputes and differences among employees. It maintains good relations among employer and worker.
3. Production Department:-
It involves the production of producing the products. In manufacturing concern business the largest and most
important department is production. The production department is divided into following departments
according to their product and brands they produce and operations they perform.
 Leather Shoe Factory:-
Leather shoe factory is concern with the production of footwear. It is headed by the factory manager. Further
this department comprises several departments and sub-departments. In leather shoe factory main
departments are Lasting and PU. In lasting departments assemblies lines produce chapels, sandals and
children shoes. The other departments include in LSF are as follows:
• Planning.
• Upper cutting.
• Upper closing.
• Assembly.
• Lasting.
• P.U. and Sole making.
 Tyre and Tube Department:-
The tyre and tube produce tyres and tubes. It is also controlled by managed by factory manager. It is tough for
workers to work in these departments. Following are its main sub departments.
• Planning.
• Motorcycle Tyre Tube (MCTT).
• Cycle Tyre Tube (CTT).
4. Accounts Department:-
Accounts department is responsible to provide the picture financial condition of the company. One manager
along with deputy manager and assistant manager is leading the accounts department. Double entry book
keeping is being used by the company. This department is divided in to two parts. One part is purely accounts

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in nature and while other is with wages and salaries issues. This department is deals with salaries, wages,
receipts accounts receivable, payments accounts payable, sanctioning loans and accounts management. The
wages to workers are paid fortnightly while salaries are paid monthly.
5. Information Technology (IT) Department:-

IT department of SIL Gujrat is responsible to manage all the activities related to computer systems and
database.IT department is working as the system support for all other departments it helps them perform
their activities efficiently and effectively. There are many reasons of implementing management information
system. This information system helps the managers in decision making.
6. Costing Department:-
Costing department performs very important function it allocates the material and their quantities to be
required for the bulk production and prepare cost sheet each article. This department is further divided into
two sections.
 Costing footwear.
 Costing tyre division.
Department receives the orders from planning department and raise the bill of material that includes how
much material to be required to produce the order and how much values it carries. It works on the basis of
specifications received from model room and standard rates of material received from material management.
7. Material Management:-
Material management perform vital role in the company. This department deals with all type of purchases.
This department is divided into two sections local and foreign purchases (imports).The department is
responsible for working on inventory management and arrange the material timely. Manager of material
management is responsible for ensuring the delivery in time and manage the raw material inventory. Whole
production is depending on it. There are various sub departments heads that are responsible for reporting to
manager of material management.
 Procurement Department:-
Procurement department raise the purchase order on the basis of bill material that receive from costing
department and made all adjustment of material to avoid dead stock. Department establish and maintains
relation with suppliers and ensure them to delivery within the lead time. Lead time for local purchase is 40
days and for import are 3-months.

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8. Industrial Engineering:-
Quality assurance manager is appointed to check the quality matter and responsible to the responsibility of
this department is to measure and improve output and operational efficiency of the production unit. The
department is responsible to find discrepancies and try to remove them. So that production does not suffer
and produce with full capacity.
9. Engineering support:-
It is a supporting department. Chief engineer leads this department. This department consists of number of
engineer and technicians. This department supports in term of:
 Maintenance of various types of molds which is used for production.

 To monitor and controlling the compressor work efficiency.
 To monitor and controlling the boiler work efficiency.
 Maintenance of tyre and footwear division.
 Checking and controlling carpentry section.
 Checking power house working.
This department is responsible for smooth running of assets and maintenance of all the machinery after a
specified time.
10. Technical Support:-

Chief Technical Manager is the head of this department. All material that includes process of chemicals is
controlled by this department. It includes:
 Raw rubber processing.

 Main laboratories.
 P.V.C
 Molding pressing.
The laboratory inspects the incoming material which required lab test that they free from band chemical and
recording their specifications.
There are two laboratories at SIL Gujrat one for shoe division called main laboratory and other for tyre
division.
11. Quality Assurance Department:-

Deliver the goods to finished goods go downs to avoid end customer complaints and to maintains company’s
goodwill. It is duty of quality assurance manager to look after the claims. The company ensures that quality
policy is understood, implemented and maintained at all levels of organization to guarantee maximum
benefits and achievements in shortest possible time. The Management Review Meetings are held to review

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the quality system at defined intervals to ensure its continuing efficiency and effectiveness for satisfying the
requirement of ISO 9001:2000 standards.
12. Security Department:-

In industry security department is responsible to maintains law and order situation inside the factory. They are
responsible to handle any misconduct and to keep the eye on workers to stop theft. The security staff is
appointed at gates and other important places of factory.
Automatic security system is installed in factory close circuits cameras are fixed to check out activities inside
the factory.
2.3.5 Comments on the Organizational Structure:-
The structure of service industry limited Gujrat is functional. Hierarchy of each department is defined
according to the needs of organization. It has large number of departments in which positions are grouped
according to their main functional area. There are many advantages of functional organizational structure
which are as follows:
 Interdepartmental coordination is facilitated and it improves efficiency.

 Specialized technical competencies may be developed and may gain a competitive advantage.
 Employees have clear career paths with their specified functions.

 In depth development of expertise is encouraged.
 Resources are used more efficiently

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Part-II
2.4. Internee Work
2.4.1. Brief Introduction of Internee’s Office/Branch:-
My internship period at Service Industry Limited was from 11th July 2013 to 21st August 2013.During this period
of six weeks I focused on my work and tried to learn as much as possible. The following are the departments
where I worked as an intern and experienced good time with the Servis employees.
 Human Resource (HR) Department.

 Accounts Department.
 Industrial Relation (IR) Department.
2.4.2. Details of Supervisor:-

I have spent two and a half week days in HR department and worked with the supervisor.
 Mr. Hafiz Muhammad Arshad.(Assistant to HR manager)
During the weeks that I have spent in Accounts department my supervisor are:
 Mr. Hassan Taqveem.(Assistant Accounts)

 Mr. Usman Zamir.(Trainee Accountant)
I have spent one week in IR department and my supervisor is:
 Mr. Arshad Mehmood.(IR Officer)

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2.4.3. Weekly Time Table:-

Following are the schedule or time table of mine at work place, which contains the summary of my activities
and task performed.
Week 1
24 July to 30 July 2013
Human Resource Department
Supervisor: Hafiz Muhammad Arshad
Date Activities
24th July My supervisor told me how to approve leaves of employees and help
Mr. Arshad in updating the missing times of employee attendance.

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25th July I was told by my supervisor how to update missing times of employee attendance due to fault
of time machine. Then he gave some applications regarding this issue to update
them in HRIS.
26th July I approve leaves and update in and out missing timing of employees and help internee
colleague in file management.
29th July I have learned how to check details of applications of employees and approve leaves of
employees. 30th July I was absent.
Mr. Hafiz Muhammad Arshad
Supervisor’s Signature:-
Week 2
31 July to 06 August 2013
Date Activities
31st July I approved leaves and record the data of those employees who leave the organization for this
purpose is used MS Excel.
01st August There were some letters like salary increment, resignation, contractual agreements and
appointment letters for the month of July, I was asked to attach these letters in the
file of HCM.
2nd August I was absent.

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5th August Learn and then update the Status of employees who transferred or left the
organization. I update the summary of employees in their personal
files manually.
6th August I learnt about entering personal data of new employees in HRIS.
Week 3
07 August to 13 August 2013
Human Resource & Accounts Department
Date Activities
7th August I have stamped the educational documents of employees and then attach these documents in
the file of General Admin and help Mr.
Haseeb in entering data of new workers in HRIS.
8th August Eid ul Fitr Holiday.

9th August Eid ul Fitr Holiday.

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12th August I approved leaves and then I am transferred to Accounts department. I attach the purchase
vouchers with their invoices and sale invoices with their summary and mark stamp
on the sale invoices.
13th August I have attached the sales tax invoices with their vouchers and goods decelerations with
their receipts. Find out the sales tax recoverable in an excel file and record the imports details in import
purchase register in MS Excel.
Week 4
Accounts Department
Supervisor: Mr. Hassan Taqveem
Date Activities
th
14 August Independence Day Public holiday.
15th August Check the receipt invoices details whether they are correct or not. Attach purchase
invoices with their vouchers.
16th August Learn how to calculate retail tax amount and then I did practice. I have learn and then find
receipts in system that are missing from the file of receipts voucher for the month of
jun.

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19th August I have entered the personal data of footwear workers. For this purpose I used MS Excel.
Write details on the file of purchase vouchers for the month of June
20th August I was assigned by Mr. Sarfraz to calculate tax application on invoice payment.

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Mr. Hassan Taqveem
Week 5
Accounts Department
Supervisor: Mr. Hassan Taqveem & & Mr. Usman Zamir
Date Activities
21st August Record the detail of employees and attach invoices with voucher.
Write details on the file of receipt vouchers for the month of June. 22nd August
I was absent.
23rd August I was assigned to enter receipts invoices details in system for the purpose of making receipts
vouchers. Calculate retail tax amount.
26th August I have made the certificate of collection or deduction of tax letters. I was assigned for the
posting of payments in ORACLE (system).
27th August Understanding the whole purchase cycle. I have entered the import details in excel. Learn
how to enter import invoices/import cost sheet data in ERP.
Mr. Usman Zamir
Week 6

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28 August to 03 September 201
Industrial Relation Department
Supervisor: Mr. Arshad Mehmood
Date Activities
th
28 August I was instructed about making ten day notice and second showcase notice. I filled these
notice under the guidance of my supervisor and then dispatched them at employees
addresses.
29th August I have made the files of new workers and did posting in nominal register.
30th August I have learnt how to made charge sheet and wrote the charge sheet against misconducts of
worker.
2nd My supervisor told me about the difference between the terminations

September and dismiss with different condition. I have made some termination and dismissal letters for
workers.
3rd September I was assigned to made ten day notice and second showcase notice and made files of new
workers.
Mr. Arshad Mehmood
Supervisor’s signature:-
Miss. Naila Afzaal student of university of gujrat worked six weeks in Service Industries Limited (Gujrat) for
her internship and she completed all activities and tasks very successfully and efficiently.
Signature of HR Manager:
2.4.4. Detailed description of Internee’s Departments

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Human Resource Department manages the organization’s workforce. It is the toughest task to manage the
human rather than managing any resource else. The HR department acts a bridge between the organization
staff and top management.
The activities performed by HR department are: hiring, selection, retain the workforce of sufficient quality and
quantity, payroll management, organize duties and profiles of each and every personnel, ensuring training of
new employees, ensure compliance with labor laws, strategy development etc.
Functions of HR Department:-
Primary objective of this department is to provide and maintain Human Resource of required competency.
Human Resource may set strategies, develop policies standards, systems and processes and may supervise the
managers of different department. Following are the major functions performed by HR department in Service
Industry limited:
1. Organizational Strategy:-
HR strategy pertains to how to implement the specific functions of HRM The HR department develops the
human resource planning for assessment of current staff available and forecast the future demand of
workforce needed. They make staffing strategies and suggest the top management how human capital affects
organizational success. The HR strategic management participates in corporate decision making.
2. Recruitment:-
Recruitment is the process of attracting, screening and selecting employees for the organization. The HR
department recruits both the workers and the staff. The recruit process starts with the placement of demand
by the departments. Mostly recruitment of workers and lower level staff is done internally references are
used. But for the post of upper level staff and managers, newspaper and companies website is used to display
ads of job. They may consider the relevant available CVs as well. They can also fire the employee for bad
performance.
3. Selection:-
Selection is the process of selecting a qualified job candidate for a job who can successfully do it and add value
to the organization.HR department select the employees according to the organizations workforce need.

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There are well defined, valid and consistent criteria of selecting employees. For workers three months trial
period and medical fitness is required for to be selected and for upper level staff different tests and interviews
are conducted for final selection.
4. Employee Management:-
After selection of new employee the HR department record, manage and update the data of employees in
Smart Term and Human Resource Information System(HRIS).All of the office work in HR department is done
on these two databases and some work is done on excel as well. It also makes the file of top level posts and
keep updated them until they are transferred to dead files.
5. Job Evaluation:-
The major responsibilities of HR department include evaluating different jobs according to their tasks,
positions, ranks, salaries etc. with respect to their value to the organization. It is the duty of HR department
for listing out the general tasks or functions of every individual. It also includes the describing the position and
his immediate supervisor to whom he has to report.
6. Employee Motivation:-
It is the duty of HR department to motivate the employees. The organization provide many special benefits
like medical facility for the employees and their family, housing facilities and education facilities for their
children’s which help them in motivating employees and maintains loyalty to the organization.
7. Compensation Structure:-
The HR department is responsible for compensation structures to set and maintain company wages
competitive with other businesses that are located in same area or fall in the same industry or requires similar
skills.
8. Reward Management:-
Beside salary and wages, Servis also strives to provide competitive employee benefits packages. It provides
rewards such as Health Insurance, Provident fund, Bonus, Paid leaves etc. all these laid down in the field of
reward management in SIL. These rewards are given to employees for keeping their morale high and this will
help to motivate employees for doing work in an efficient way.
9. Training and Development:-

Learning is the continual process in Servis.HR department of service industry conducts training and
development programs regularly for getting better output. They provide training to both new and old

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employees. They provide training that supports the organizations fair practices and employee development
that help them in becoming leaders for administrative and management.
10. Implementation of Labor Laws:-

HR department ensures that organization is fulfilling the requirements of labor laws.HR office availed with the
recently updated employment laws by government. They convey these laws to the organization and work for
their implementation. For this changes can be required in organization strategy.
Accounts Department
Accounts department is responsible for all matters relating to Finance and accounting functions of the
Commission .Accounts department is responsible for Identifying and analyzing accounting and financial issues,
recommend and implement appropriate action for resolution. Typically, the accounting department is
responsible for the following:
1. Payroll:-
The total wages and salaries earned by every employee are calculated by accounts department. Payroll is a
critical and complex responsibility of the accounting department and includes making sure all employees are
paid accurately and timely.
2. Cash Collection & cash Payments:-

All cash received from sales and from all other sources has to be carefully identified and recorded by accounts
department. In most organizations, the treasurer may be responsible for some of these cash flow and cash-
handling functions.
3. Accounts Payable:-
In order to maintain great relationships with vendors making sure that everyone gets paid on time is a vital
role. In servis the accounting department’s role includes keeping an eye on opportunities to save money, for
example, determining if there are discounts or incentives available for paying certain vendors more quickly
then try to avail these opportunities. In Service industry Gujrat Mr. Usman deals with accounts payable. When
invoices are received then he enter them in ORACLE system for the purpose of making their vouchers.
4. Financial Controls:-
It is the major responsibility of accounts to maintain financial controls that include reconciliations, dividing
the responsibilities and following the GAAP standards of accounting principles, all of which are implemented

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with view toward compliance, fraud and theft prevention. These arrangements help them to save from
discrepancies.
5. Accounts Receivable and Revenue:-

Another key responsibility of the accounting department is to account for and track receivables, including
outstanding invoices and any required collection actions. Accounts receivable is responsible for creating and
tracking invoices. When invoices are received then information is entered in system for generating vouchers.
Mr. Hassan deals with accounts receivables so he posted the receipt invoices of sales. The responsibility here
includes assuring that customers pay those invoices on time, so a system of friendly reminders is crucial.
6. Making Budgets:-
Finance/accounts, together with the Administrator, plans, directs and coordinates the formulation,
preparation, execution, review and analysis of the company’s operating budget and operating program. The
finance department works very closely with all department heads and elected officials and gathers
information to create and maintain the annual budget.
7. Prepare Financial Statements:-

To prepare annual financial statements is important work of accounting department because after auditing, it
becomes proof in court and large numbers of decisions are affected from this. This department is basically
concerned with processes and activities of recovering, sorting, summarizing and reporting data resulting from
the whole day transactions of all the departments.
Actually the process of this activity starts from the preparation of all the required vouchers by different
related departments. In servis industry double entry system is used for book keeping record.
Industrial Relation Department
Industrial relation is the department which regulates the relation between the worker and the employer. This
department is found in big labor incentive organization.IR is one of the most important and beneficiary
ingredient for successful organization. Its main functions are:
1. Token number allotment:-

When workers are recruit they allotted a token number and enrolled in the nominal register then their
personal file is maintained and then it put forward in case if favor or against the employee.

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2. Disputes handling:-
Its main function is settlement and avoidance of disputes and differences between employers and workers. In
case of any dispute, the relevant authorized officer made complaint in the form of duplicate and send to IR for
taking necessary legal actions against the complaint.
3. Settlement of workers file:-

IR department make an update the file of every worker that may easily be used in favor of worker while apply
for the following benefits:
 For issuance of social security medical card.

 As a special case of re-employment.  For gaining help from management.
4. Provide benefits to the worker:-

IR department work for the employees to provide them different benefits. These benefits include:
 Scholarship for the children of workers, so they got education from colleges and universities.
 Medical leaves and treatment.

 Marriage grant for those workers whose daughters are getting married.
 Death grant for the deceased legal heirs.
5. EOBI and IR department:-

IR department is in interaction with EOBI to provide old age benefits. These benefits include:
 Old age pension and grant to those employees who are getting retired after 60 years.
 Disable pension provide to those workers who face a serious accident or disease at the workplace and
declared disable by Social Security doctor.  Survivor pension provide to legal heirs of deceased.
2.4.5. Detail Description of Activities Performed by Internee
Detail Description of Activities Performed by Internee in HR department:-
Majority of activities in HR department that I performed are related to HRIS database.
These include;

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1. Entering miss timing of employees:-

I enter the missing in and out timing of employees due to fault of time machine. An application is received
from employee regarding this issue and then time is entered in HRIS.
For this manual work login of Mr. Muhammad Arshad is used.
2. Approving Leaves:-
I approved the leaves of both the workers and staff members. Form is filled before approving leaves. For
approving the leaves of staff and management and workers, log in of Mr. Muhammad Arshad and Mr. Haseeb-
ul-Hassan is used. Every leave form contains a serial no and signature of related supervisor, which are used for
approval process.
 Option of Leave Approval in HRIS:-

Personal management → Leaves →Leaves approval.
3. Employee Status Updating:-

The record of employees is also updated regularly. It can be updated if there is mistake in data entered. But
basically we update when worker is transferred from one department to another, if he/she is terminated or
dismissed.
 Option in HRIS:-
Personal management → Employee status.
4. Personal Data Entry:-

Personal data of employee’s id entered in databases. Any worker cannot use time machine for attendance
until their record is not uploaded in databases. Personal data includes token number of employee, name,
father name, department of work, date of joining, Date of confirmation, education, CNIC number and
reference of employee.
 Option in HRIS:-
Personal management →Employee management.
5. Record of Dead Files:-

I record the data of those employees who left the organization. For recording data of these employees I used
MS Excel. The data includes information like the name, father name, department, address, date of joining,
date of leaving and CNIC number.

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Human Resource Information System:-

HRIS is the software that is used in most HR departments to perform the activities of employee management.
Every organization have different type of HRIS according to their need. The HRIS being used in Service industry
contains a lot of functions. Following are some functions in which I worked during my internship.
Personal Management
 Personal:-
In personal we enter the personal data of employees. This task need keen focus because it is difficult to alter
wrong entry, especially entry of date of joining. When the data is entered we say that employee account is
activated.
 Employee Status:-
By this option we update the data of employee. Employee status is updated when he is transferred to another
department or when he leaves the industry.
 Leaves:-
All types of leaves are recorded and approved in this option. When leave application is received first leave
request is filled and then it is approved by HR department.
• Leave request form.

• Leave approval.
Attendance
 Manual attendance:-
In manual attendance record of attendance of employee is maintained manually if there is problem in time
machine.
 Attendance View:-
We can view the attendance record of particular employee by using this option.
Reports
Every kind of reports about employees and departments cab be generated. I used following reports related
options:

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 Attendance:-
We can view the attendance logs, both department wise and employee wise. We can also get daily attendance
reports of present and absent employees.
 Leaves:-
The complete detail of leaves can also be generated about employees and department.  Overtime:-
Reports of overtime can also be seen of past, both department wise and employee wise.
Detail Description of Activities Performed by Internee in Accounts department:-
I have performed my activities in accounts department for the purpose completing some work I used MS Excel
and for completing some activities in accounts department I used ORACLE database.
My activities in accounts department are:
1. Calculate retail tax amount:-

I was responsible to calculate to calculate retail tax amount on daily sales of service industry. Then the copies
of these sale tax invoices are attached with their summary. One copy is sending to head office Lahore, one is
for tax department, one is for supplier and one is kept by accounts department.
 Option in ORACLE:
AR Super user →Transactions →Receipt invoices →Click on find option →Write ATT in transaction type and
then click on tab and select the last option from the list enter → Click on incomplete → Line items →Click on
tax information and press enter →Close the first window →Tools →Calculate retail tax amount →Complete.

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2. Record the import details:-

I was assigned to record the goods declaration details in import purchase register. The detail includes the
description of goods that imported from any country, quantity of goods, date, sale tax etc. For this purpose I
work on MS Excel.
3. Entering personal information of workers:-

I was assigned to enter personal information of workers in excel sheet. The information is required for the
purpose of opening employee account in bank. This information includes employee name, father name,
mother name, CNIC number, date of birth, home address and cell number.
When the data is entered then this list is send to bank for opening account so that the employees collect their
salary from bank.
4. Entering receipt invoices:-

I worked on system for the purpose of entering receipt invoices. We enter the invoices details for the purpose
of making receipt vouchers. When these receipts are at these are finalized by manager of accounts
department.
I also find some receipts in system that was missed from file. My supervisor told me about the whole sale
cycle of service industry. They told me about what entries are make when sale cycle starts.
 Option in system:-
AP In charge Gujrat →(Invoices entry) invoices →Press enter →Press enter →Write details like P.O number,
invoice amount, date etc. →Press enter(After pressing enter the system will give us a voucher number for the
invoice) and then write receipt number, match the quantity with unit price and press space button to select
and then f5 →Click on lane 2 →Click on tax column and then charge tax →Calculate tax →Shift f5 →Control
s →All distribution → Control s.
5. Apply tax application on invoice payment:-

I was assigned to change the tax rates of the parties to whom we make payments. When tax amount is
charged then payment is made to the party through cheque. Mr. Sarfraz is the person who deals with
payments in accounts department.
He deals with all the types of parties to whom they pay and maintain record of these in system.

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6. Posting of payables:-
I assigned to post the payable invoices in system. Mr. Usman deals with all payables in service industry and
maintains their records in system. He told me how the purchase cycle starts and what type of entries are done
at that time and when the purchase cycle ends.
Detail Description of Activities Performed by Internee in IR department:-
Following are the activities that I performed in IR department:
1. Posting:-
I post the data of new workers in register. It is process in which data of new workers is recorded on the
register.
First data is record by IR department manually and then this register is send to HR department to record the
information about workers in system. This information include the name of worker, Father name, Caste, Token
number, Address, Date of birth, Date of appointment, Department, Reference of any factory person and ID
card number.
2. Warning letter:-
It is the simple warning letter that issued to worker so that he did not repeat the same behavior in future. I
was assigned to make these letters.
3. Charge sheet:-
My supervisor told me how to made charge sheet against the worker for his sever misconduct with his worker
fellows or his incharge.IR department writes the charges against the worker on charge sheet and wait for the
answers from the worker .
3. Suspension letter:-
I made suspension letters of workers. If answers from workers are not justifiable then he will be suspended for
some days. During suspension period employee daily reports on the security office.
5. Termination letter:-

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If the worker is on probation period and made a serious type of misconduct then he will be terminated from
the organization. I was assigned by my supervisor to make these letters. The termination letter contains three
copies. One copy is moved to HR department, one copy is posted to worker’s home and one is attached with
the file of worker and file moved to dead files. All of these copies are signed by IR manager.
6. Ten days’ notice:-
If worker is absent for more than a month the IR department issue him a ten days’ notice. My supervisor told
me made this notice. One copy is posted at worker’s home and one is attached with the file of worker.
6. Second showcase notice:-
If worker respond to the ten days’ notice then he has to face inquiry for further job but if he did not respond
then IR department issued him a second showcase notice.
7. Dismiss letter:-
If worker still not respond to second showcase notice then IR department dismissed him. Red entry of dismiss
is made in register.
2.4.6. Summary of Learning
2.4.6.1. Skills and Qualification:-
I have gained the practical knowledge from the internship. The internship program is very helpful for me as far
as learning is concern. I have got my experience that contributed in my learning. I learnt variety of skills and
qualification. I have learnt how to behave with employees in different situations. The interaction between
employees should be friendly, so that employee can feel comfortable while sharing his problems. And we are
here to facilitate them, not for ordering them to do as we like. During the increase in workload, I got to know
how to complete tasks. When workers are satisfied then they become loyal towards the organization.
Organization’s success depends on the devotions of workers. If you are unable to keep your employees
satisfied then it is not productive for any organization. Another skill I have learnt is the adaption. The process
of adjustment is very tough; one should have to be flexible to induct himself into their system. It built
interpersonal skills. . I have learnt how to behave with senior managers. In human resource department and
accounts department I have learnt about the very important Database HRIS and ORACLE.I learnt how to work

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on them and what is the use of these two in their department. I also learned to supportive and cooperative
with colleagues and supervisors.
2.4.6.2. Responsibilities during the Internship:-
I undertook a number of responsibilities on the base of department I have worked in. During my internship
period in HR department I was given a number of responsibilities such as preparing and approving leaves. I
was assigned to enter the missing timing of employees in HRIS because time machine was out of order. I have
record the data of those employees who left the organization, for this purpose I used MS Excel. I was given the
responsibility to update the status of employees in Database in case of dismiss, transfer or termination.
In Accounts department I was given the responsibility to calculate retail sales tax amount. I have record the
import details in import purchase register, for this purpose I used MS Excel. I have entered the personal data
of footwear workers such as name, father name, mother name, address, CNIC number and phone number, for
this purpose I also used MS Excel. I was assigned to enter receipt and purchase invoices in system. I was
responsible to apply tax application on invoice payments in ERP.
2.4.6.3. Influences on My Future Career Plans:-
Internship play very important role in influencing my future career plan. This will help me in certain ways.
During my internship I got experience in field of finance because it is related to my specialization in MBA. It
will also help me in start of my career to get job in any organization. I have also built some network while
working in industry which is quite supportive in every way. According my thinking it was very necessary to
have practical exposure in industry with my degree so that I have some practical experience of field work. This
internship gives me a chance to gain practical knowledge with my theoretical knowledge. I also get a chance
to correlate the theory of my course with the industrial problem and their solutions. Definitely this all will
make a positive and effective impact on my future plans.
2.4.6.4. Internship activities Correlation with My classroom Knowledge:-
Internship activities are very much correlated with class room knowledge. I thought bookish knowledge is very
different from what is happening practically in different organization but this internship changed my views.
There was a practical implementation of the knowledge that in have gained in my classroom. As far as I am
doing my specialization in finance I have spent some weeks in HR department due to some reasons so I knew
what happed in HR department, and same was going on there. Although I did not seen any planning or

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training session there, but management was functioning. I realized how much communication skills are
important for professional life. The practical implementation was observed. Such as when it comes to financial
knowledge, subjects like analysis of financial statement and financial accounting helped me to understand
receipts, payments and financial statements and to have a thorough study of invoices, vouchers and financial
statements which helped me to understand its performance over past years. Financial accounting study
enabled me to understand the work of accounts department.
Therefore, it can be concluded that classroom knowledge was quite helpful during my internship period.
3. Conclusion
3.1. Summary of Key Conclusions:-

Internship is very important element in our MBA course. I have learned too much from internship. At start i
don’t know the practical implication of this knowledge but i learn how to prepare, how to present and who to
implement the knowledge. Internship not only increases our knowledge but also play a vital role for having job
in any respectable organization. It is conducted as experience of field work. It enables us to face hard time
because many of us struggle for their internship, especially when we go for finding the organization of your
interest.
The management of Service Industry Limited is very cooperative. The assigned me task and keep me busy in
learning different things. The provide guidance and support in difficulties. On the whole, this internship was a
useful experience. I have gained new knowledge, skills and met many new people. I achieved several of my
learning goals, however for some the conditions did not permit.
3.2. General Observations about the Sector:-

As an internee draws the following about Service:
 They are facilitating their employees very well. They have already done a lot of for their workers.
 They utilizing their workers efficiently to cut down their cost.

 There are very strict rules of company for their employees.
 HR department is doing very well. They have been able to attract pool of skilled labor and retaining it.
 The security system is very alert and strong in service industry.

 Factory’s infrastructure is not attractive, especially the offices and building of the company.
 There is a lot of work for the staff to do. They don’t have relaxation time, even able to complete their daily
activities.

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3.3. SWOT analysis of organization:It is very important

for any organization to know about its strengths,
weaknesses, opportunities and threats to compete in
the industry. So, by the help of environmental analysis
and organizational structure I can find out the
opportunities and threats and strengths and
weaknesses.
Strengths:
 Cost Advantage:
Lower costs are leads to higher profits for service. A low cost leader can undercut the rivals on price.
Only few companies has cost department and service is one of them who has independent cost
department. Cost department control over per unit with all aspects such as material cost, labor cost, rates
controlled by bill verification.
 Latest technology:
They have advanced technology and modern equipment that helped them in producing goods.
 Employee benefits and reward:
SIL is providing health, pension and transport facilities to its employees.
 Efficient Procurement department:
Procurement department is working very efficiently in transferring the inputs into outputs.  Customer
loyalty:
Customers are loyal to Service Industry. Instead of targeting all customers they only need to target new
customers in order to grow their business.
 Brand Name:
A strong brand is major strength of service. This gives the ability to charge higher prices for their products
because customers place additional value in the brand.
 Business portfolio: Service is producing variety of products that reduces the risk of company.
 Having company's own outlets all over the country.

 Heavy export of service industry.
 Having good relations with its suppliers.
 Company has vast experience in shoe manufacturing.
Weaknesses:-
 Lack of new products:
SIL is not introducing new products these days.  Less
promotional activities:

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The majority of people are not well aware about the products of SIL. It is due to their very low services of
promotional activity.  Centralized decision making:
The decisions are made by the upper management which is weakness of the SIL, because authority is not
delegated to branch level. Manager cannot take initiative regarding different decisions. They cannot work
freely.
 Resistance to change:
There is very frequent change in design, technology, process and marketing due to branded footwear
availability in the market. The service is not well known as making fashion oriented brand.
Opportunities:
 Innovation:
Great innovation can help service to produce unique products and services that meet customer’s needs.
 New technology:
New technology helps them to better meet their customer needs with new and improved products.
Technology also builds competitive barriers against rivals.  Low price:
Company can introduce low price product in the market because high percentage of population belongs
to lower class.
 Replacement of infrastructure:
SIL has to replace the old infrastructure with new one for best working environment.
Provide better online shopping facilities.
Threats:
 Political risk:
Politics can increase risk factors because governments can quickly change business rules that negatively
effect on Service.
 Government regulations:
Changes to government rules and regulations pay negative impact on the industry.  Substitute
products:
The availability of substitute products hurts service industry’s ability to raise prices because customers can
easily switch to another product.  Competition:
Competition is going to increase because of setting up modern units elsewhere and entrance of
multinational companies in local market.
 Political instability:

Administration
Pakistan is a country that politically is not stable. There is not stable government. This has great impact on
industrialists and investors. Service industry has threat due to political instability because in instable
government there is rapid change in laws, rules and regulations.
 Economic threat:
The service industries have to face economic threats. The first economic threat is high prices of electricity.
Another threat is rate of inflation, which causes rise in prices of things. In recent years, oil prices have
gone up due to which it has increased transportation cost which increases the cost of production.
4. Recommendations:-
After a thorough analysis of financial performance and operations of Service Industry Limited Gujrat during
internship, I want to draw following suggestions and recommendations for the industry.
 Footwear industry is highly fashioned industry so company should bring innovations in its products
according to new trends and fashions.
 The advertisement should be at large scale of Service products, on the famous channels to greed the
people of target market.
 The company must reduce its operating expenses in order to compete in the market on price basis
operating expenses are controllable factor.
 Company must pay a continuous attention to quality of products so that competitor may not surpass it.
 The company should increase their exports to all over the world through participate in expo festivals.
 The HR department should arrange programs for motivation of employees and the selection of employees
should be on merit not on references.
 Prices of Service products are high because now in the market there are China shoes and other competitor
companies, so they need to reduce their prices.
 They should have to decentralize the management decision. That will build trust on low level managers
and they will be confident and work with devotion.
 The Service shoes should start to sale its product through online, which can improve its sale as well as its
profits. It is also a good image for the customers that the company is involved in online business and easy
to access. Through this way company can also compete at good scale with its competitors.
 Different training courses should be arranged for the uplifting and improving quality of work for
employees.

Administration
 There should be a monthly magazine of Service products in which the company can give awareness about
the good features of the products of company and new features and designs.
References:-
 www.servis.com. Retrieved July 25, 2013, from http://www.servis.com/page/the_history
 www.servis.com. Retrieved July 27, 2013, from http://www.servis.com/page/the_brand
 www.servis.com. Retrieved Aug 3, 2013, from http://www.servis.com/page/financial_results
 www.servis.com. Retrieved Aug 11, 2013, from http://www.servis.com/contact
 www.servis.com. Retrieved Aug 17, 2013, from http://www.servis.com/page/ssc  www.servis.com. Retrieved
Aug 22, 2013, from http://www.servis.com/page/csr  Service industries limited (2012). 2012 servis annual
report.
Retrieved from http://servis.com/bbcontent
Repository/20121114140799/servisannualreport012.pdf

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Service Industries Limited

Servis Industry limited

Program & Session MBA 2012 to 2015

Name of Program Coordinator ___________________

Signature of Program Coordinator_________________

Page 1 Master in Business

Page 2 Master in Business

Page 3 Master in Business

2.4.6. Internship activities correlated with classroom knowledge 53

3.1 summary of key Conclusion derived from internship experience 54

3.2 General observations about Servis 54

Page 4 Master in Business

• Lack of new products.

I have performed a number of activities in Service Industry during my internship period.

• Employee Status Updating.

Page 5 Master in Business

Page 6 Master in Business

2. Main body of report

2.1. Introduction of study:-

Scope of the study:-

My aims of doing internship are:

Page 7 Master in Business

 To develop skills and techniques that directly applicable to my career.

2.2. Overview of Organization

2.2.1. Brief History:-

Mr. Ahmad Javed

Mr. Omar Saeed

Group Executive Committee

Page 8 Master in Business

Page 9 Master in Business

2.2.2. Nature of the Organization:-

 All categories of leather footwear and sports shoes.

Page 10 Master in Business

2.2.3. Reward honors and Success stories:-

1. Celebrating 50 Years of Happiness:-

Page 11 Master in Business

3. Best Vendor Performance Award:-

4. ISO 9001, certified company:-

2.2.4. Product lines of Service:Two main

product lines of Service are:

Page 12 Master in Business

It is a brand for the man who accepts challenges for

Page 13 Master in Business

TOZ is a brand that brings a colorful world

Tyres and Tubes:-

 Long Life (Auto and Bicycle)

Page 14 Master in Business

Page 15 Master in Business

Page 16 Master in Business

 Footwear for Defense Forces (Defense)

2.2.5. PESTLE Analysis:-

PESTLE analysis is concerned with macro environmental

Following are the effects of political system on Servis:

 High taxation on growing industries

Page 17 Master in Business

 Political interference does not leave independence in work.

 One of the problems in growth of service industry is higher energy prices.

Following are the social issues faced by Servis:

 Consumer attitude and demand of products.