Vision To excel in providing engineering goods and services through continuous improvement. Mission To provide quality products and services to the complete satisfaction of our customers and maximize returns for all stakeholders through optimal use of resources. To promote good governance, corporate values and safe working environment with strong sense of social responsibility. PEL Company was established. Manufacturing of air conditioners with assistance of Fujitsu, Japan. Acquired technology Ganz, Hungary to produce power transformers.
Technical Assistant Agreement with Pauwels, Belgium to produce distribution transformers. Apr 20, am. These type of business news, success stories should be in the front page.
The business section news are meager by any standards. DAWN should add more news in business section, its vital for the economy and for the country image. The front page has mostly mundane, irrelevant news Recommend 0. Apr 20, pm. I am happy DAWN has selected an company with an positive out look.
This is an story of frat transformation. Malik from Australia. I am delighted to read the report about Pak Elektron Ltd. Right from the beginning, PEL was a success story. I wrote my Masters thesis about this organization over 50 years ago.
They used to make electric fans and transformers then. The quality control in place was amazing, the staff and employees were thoroughly competent and the company finances were in good shape. Since then PEL has come a long way and the result is here for all of us to see.
Well done, PEL. And yes this should have been a highlighted news! Against this order form, delivery order is issued from dispatched department after that delivery order approved by manager distribution and credit control. In case of free delivery dispatched department issues the goods received note and give it to the driver of vehicle, which gives receiving from the customer. And then prepare the supply invoice annexure and bill that includes the total amount customer paid. Mostly sales are done on credit basis so after sending the invoices to the customers they follow up them to make payments.
Continuous visit are made to customer for removal of objection and collection of payments Corporate sales department received the payment from customers against this payment they made payment confirmation report and then depositing it to the Distribution and Credit Control department where this department makes their entry into the system.
With the help of that data Distribution department feed into the system Corporate Sales department generate different reports. To keep the record up to date sales coordinators prepare consignee status on weekly bases and aging reports. The department has its sales officers in different cities of Pakistan and they are responsible for communicating with customer parties, sells products, installation and to make collections of credit sales.
This department prepares different reports regarding sales and collection. Corporate Sales Department deals with the business parties or organizations rather than individual customers. Where after sales services are provided to satisfy customers having problem in their appliances. PEL is well known for their customer care services. The basic function of credit control is to do sales accounting of Corporate Sales department and maintains ledgers.
This department is responsible for check and balance of dealers, and allocates credit limitations for dealers and Corporate Sales department. This department not only motivates the dealers but also check their activities.
It also checks their credit limit because dealers have awarded different credit limits according to their potential of sales. In this department all the data regarding products sending out from the factory is maintained. This department sends daily dispatch report to Corporate Sales which help to identify the orders and their status.
At the start this department did not exist in the hierarchy but with the passage of time and with the success of easy installment scheme, this department came into being. It not only deals with the employees of the organization but also help in management of the affairs of the company.
If this area of corporate activities is improperly handled, a company may lead insolvency despite having all the resources and opportunities. Therefore proper financial management is vital for every business concern and PEL is not lacking behind over here. It includes from nails to large metal sheets. At the start of each financial year they receive a major plan from the management, which highlights all the raw material required for each product.
Dates and maximum time limit for raw material requirement is also mention in this major plan. Now procurement team makes small benchmarks and milestones from the major raw material required plan in order to ease them for remembering the required time limit and also reminds finance department to arrange finance for such purchases.
Foreign Procurement Responsibilities and duties are same as Local procurement but they vary in the dimension that, they have to arrange the raw material from abroad. They also receive same plan as local procurement for the whole financial year and develop milestones to carry out the plan execution properly. The skill of this department is to purchase the raw material in the optimum cost that best satisfy the need of production department and also to finance department in quality as well as in monetary terms respectively.
They also receive a major plan for the whole financial year that indicates the number and models of each brand and the deadline time for each lot. The Accounts department maintains record of all its expenses through vouchers.
Generally the following types of vouchers are used for this purpose. The company identifies the total market, divides it into smaller segments, selects the most promising segments and focuses on serving them. PEL understands the importance of customers and that is why it has a customer-driven marketing strategy. As PEL does mass marketing so it is good for company. It designs a marketing mix using mechanisms under its control: product, price, place and promotion.
The company engages in marketing analysis, planning, implementation and control to find the best marketing mix and to take action. The company uses these activities to enable it to watch and adapt to the marketing environment. PEL does segmentation of the market according geographic and demographic variables like rural and semi-urban areas and income level of the customer. Market Targeting Market targeting involves evaluating each market segment's attractiveness and selecting one or more segments to enter.
PEL targets these markets because it has differential advantages of economical and durable products over its competitors; where it can generate the greatest customer value and sustain it over time.
Market Positioning PEL positions itself as an electronic company offering durable products of best performance at economical rates. PEL plans positions durability and low prices that distinguish its products from competing brands like Mitsubishi, Sabro etc. PEL offers several models of its refrigerator and air conditioners and dozens of optional features. The products of PEL come fully serviced and with a comprehensive warranty that is as much a part of the product.
Price Price is only element in the marketing mix which generates revenues for the company. PEL calculates suggested retail prices that its dealers charge from the consumers. PEL is adopting pricing approaches to bring it into line with changing economic conditions and consumer price perception. PEL has adopted good-value pricing strategy—offering just the right combination of quality and good service at a fair price. Place Place includes company activities that make the product available to target customers.
PEL has a strong network of dealers throughout the country. PEL has indirect marketing channel in customer market and contain one intermediary level of retailers. PEL selects its dealers carefully and supports them strongly. The dealers keep an inventory of PEL products, demonstrate them to potential buyers, negotiate prices, close sales and service the products after the sale.
Promotion 2 Promotion means activities that communicate the merits of the product and persuade target customers to buy it. PEL has lack of advertising through print media due to the financial restrictions. It was directing its marketing activities toward channel members to induce them to carry the products and to promote them to final consumers.
The industry of electrical products is in decline stage as industry is showing negative growth. PEL Orientation Toward Marketplace PEL has Production as well as Product orientation towards marketplace, as it is focusing on procedures to achieve high production efficiency, low costs, and mass distribution.
On the other hand company also focusing on making superior products and improving them over time. The prices of its power division appliances are high but they are of very high quality. PEL has a competitive advantage of its brand name. In the branded air coolers, major players are National, Super Asia and Atlas.
From above analysis it is clear that air conditioners are facing a weak threat of substitute. Threat of New Entrants PEL has low level of threat of new entrants in the industry as he electronic industry has different barriers to entry. The companies are introducing products with new and advance technology to attract and capture the customers. They are using advertisement and technology as a weapon to increase market share in the related markets. The Procurement Department is responsible for the purchase of the raw material.
The company purchases raw material from local as well as from foreign markets. The company analyzes the material requirement and selects the market which gives the company high quality material in a favorable credit terms and price. Before purchasing the manager of procurement department gets permission from Finance department, which allocate the budget for procurement according to the needs and forecast of production. The forecast of Production is decided by the Marketing as well as Production department.
Marketing Department forecasts the market demand by analyzing the economic, political, social and technological indicators of the target market. This forecast is very critical for the company as a wrong forecast can lead to shortage or surplus of the product.
As for the year , the company forecasted a low demand for home appliances due to economic meltdown but during the year shortage of products happened in the market. The raw material is stored in the raw material stores where from the concerned departments demand the material when needed. The Production Manager issues a material requisition voucher to the store and also feeds its entries in the web system of the company.
After receiving this voucher the store issues the material to the department and also does the entries in the network system which also maintains the inventory of material.
Business Process 2 The raw material is processed in the production departments of different products and controlled by their divisions. This raw material is put into the process where the quality control inspection is occurred at every stage of production, and defected units are separated from the good units. The quality checked products are packed and then sent to the finished goods stores in the factory. The finished goods store departments maintain the inventory of the finished goods and issue a units receiving note to production department as a proof.
On the other hand units received are entered in the system of network of the company. The Sales department receives orders from the customers and confirmed the orders if stock are available in the factory.
The units from finished goods store are sent to the customers by the dispatch department after receiving request from the Sales department. Permanent Workers 2. Temporary Workers Temporary workers are employed for about 6 months, and when the season concludes the temporary workers are laid off. Temporary workers are employed as helpers and assigned those jobs where skills are not required. According to the Economist. Due to this problem business activities in Pakistan are severely affected.
The Foreign Direct Investment also decreased dramatically due to current insecurity. The cost of manufacturing is very high due to the electricity rates and other overheads.
So most of the time manufacturer hesitates to do manufacturing in Pakistan and prefer to import finished goods or only assemble goods in Pakistan.
It is heard that it will be increased more in future. Largescale manufacturing witnessed a across the board decline of 7. The massive contraction is because of acute energy outages, a weak security environment and political disruption in March Their primary focus is on food and daily use goods and thus people have lessened their interest in electronic goods.
That is why Window ACs are almost obsolete because of high energy consumption and Split ACs are becoming more popular because of low electricity bills. In Pakistan Air Conditioners are used by upper and middle class. That is why people purchase home appliances on installments from the dealers. The bigger is the outer units the more efficient will its inner unit. So companies are introducing big outer units to get more efficiency. CFC gases are harmful for the environment and cause depletion of ozone layer, due to which the danger of global warming is happening.
From , no CFC gases product can be sold or bought in the international market. So to remain in the international market it is necessary for the Pakistani companies to adopt new technology of non-CFC gases.
The electronic inventory management systems are used to reduce the cost of handling the inventory and orders. Following are the main strong points of PEL; 2 Strong Brand Image PEL has created the strong brand image in the mind of the customers through higher quality and low price.
Strong Dealer Network It is also the plus point for the PEL that it has also developed the strong dealer network in the market. The dealers are always trying to sell the PEL appliance to the customers because they know there are high margin in the PEL products.
They can get more money after selling the PEL products. The PEL also provides more incentives to their dealers than their competitors. Dealers are very conscious about the PEL products and always guide the customer in buying the PEL appliances and tell them the more qualities of PEL products than others products.
PEL is also in a strong position that it provides the superior quality to its customers. PEL also provides the after sale service to their customers which delight the customers satisfaction.
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