Internship Report of

SHAMIM & COMPANY (PVT) LTD.

Submitted by:

Abdul Rehman
BE-15-14
Session (2015-2019)
Submitted on:
31 August, 2019

1
Result Sheet

2
Letter of Internship

3
Internship Certificate

4
 Dedication

By the grace of Almighty ALLAH have completed my internship time. I would like to dedicate my work
to my parents, precious Institute of Management Sciences and all faculty members of IMS specially my
course instructors and internship coordinator Rashid Waseem as their guidance enabled me to achieve my
objectives and in completing my internship successfully.

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 Acknowledgement

First and foremost, I am thankful to Almighty ALLAJH, most beneficent and the most merciful who gave
me knowledge and power to make me able to complete my internship successfully. I am also thankful to
University of Education Campus Multan which provided me this opportunity to have an experience in a
reputed organization and groom myself for the future professional responsibilities.
A special thanks to Mr. Muhammad Afzal (Executive Finance), Mr. Imran (Audit Executive), Mr. Waqas
Tareen (Executive Finance), Mr. Tahir Mehmood (Insurance Officer), Mr. Wali Bukhari (Accounts
Coordinator) and Rao Amjad Taufeeque (IT Procurement Officer) who would help me to enhance my
abilities, skills and knowledge.Supporting, guiding and encouraging me throughout my stay. Without
their support and proper guidance, it would be almost impossible to accomplish the tasks successfully.

I also like to acknowledge and show my deep gratitude to our respective teachers, all faculty members
and our institute of management sciences (IMS) for their consistence advice and support given during the
writing up of this report.

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 Executive Summary
This internship is based on the activities I’ve done in organization and basic information about Pepsi
Multan. Starting by providing overview of an organization including its brief history, introduction of
organization and policy of organization. Which highlights the background of Pepsi and basic introduction
of Shamim & Co. that how it establish in Multan in 1967.

After all this basic information organization structure is discussed along with how its hierarchy performs
and how many employees working currently moreover where else its main offices are located,
introduction of some departments how they operates and coordinate and in the end comments on
organization structure.

In the next step journey of my internship starts where I discussed about the plan of internship program
and introduction of departments Shamim & Co. where I work which is located near MDA Chowk Multan.
I started my internship on 20th of May, 2019 and successfully ended it with positive views from
organization on 29th June, 2019 by working in 4 departments Audit, Finance, Insurance and Accounts
Coordination.

Reflective Journal entries are the almost complete activities perform in the field or in the office all the
activities of 6 weeks are mentioned in there and in the end I critically analyze organization and its
activities and operations. Also discussing company’s SWOT analysis, conclusion and Recommendation
for an organization.

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Table of Content

(I) Title Page................................................................................................................................................1

(II) Result Sheet...........................................................................................................................................3

(III) Letter of Internship (IV) Internship Certificate....................................................................................4

(V) Dedication.............................................................................................................................................6

(VI) Acknowledgement...............................................................................................................................7

(VII) Executive Summary...........................................................................................................................8

(VIII) Table of Content................................................................................................................................9

1. Overview of the Organization................................................................................................................10

Brief History:.........................................................................................................................................10

Introduction of Organization.................................................................................................................10

PepsiCo:................................................................................................................................................10

Mission:.............................................................................................................................................10

Vision:...............................................................................................................................................10

Shamim & Company:............................................................................................................................11

Policy of the organization:.....................................................................................................................12

Strategy:............................................................................................................................................12

People:...............................................................................................................................................12

Structure:...........................................................................................................................................13

Rewards:............................................................................................................................................13

Processes:..........................................................................................................................................13

Competitors:..........................................................................................................................................13

2. Organizational Structure........................................................................................................................13

Organizational Hierarchy Chart:............................................................................................................13

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 Number of Employees:..........................................................................................................................14

Main Offices:.........................................................................................................................................14

Introduction of All Departments:...........................................................................................................15

HR Department:.................................................................................................................................15

Tracking Department:........................................................................................................................15

Marketing Department:......................................................................................................................15

MIS Department:...............................................................................................................................15

Sales Department:..............................................................................................................................16

Key Accounts Department:................................................................................................................16

Distributions:.....................................................................................................................................16

Comments on Organization structure:...................................................................................................16

3. Plan of Internship Program....................................................................................................................17

Introduction of Office:...........................................................................................................................17

Dates of Internship:...............................................................................................................................17

Departments and Duration.....................................................................................................................17

Sales:.................................................................................................................................................17

Trade Activation Department:...........................................................................................................18

Key Accounts Department:................................................................................................................18

4. Training Program...................................................................................................................................18

Detail of activities by the departments I worked in................................................................................18

Sales department:...............................................................................................................................18

Trade Activation department:............................................................................................................19

Key Accounts Department:................................................................................................................20

Net Discount:.....................................................................................................................................20

Advance Payment Discount:..............................................................................................................20

Trade Discount:.................................................................................................................................20

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 Detailed description of tasks and projects I’ve done during internship:.................................................20

Visit Market:..........................................................................................................................................21

Coordination with SO/SDE/OB/SM:.....................................................................................................21

Placing Order:........................................................................................................................................21

Execute outlets as per campaigns and criteria:.......................................................................................22

Customer Dealing:.................................................................................................................................22

Receiving and dispatching of POSM from marketing store:..................................................................22

Chiller verification:................................................................................................................................23

Survey of Outlets:..................................................................................................................................23

Project Implication:...............................................................................................................................23

5. Reflective Journal Entries......................................................................................................................23

Week 1:.................................................................................................................................................23

Week 2:.................................................................................................................................................24

Week 3:.................................................................................................................................................25

Week 4:.................................................................................................................................................26

Week 5:.................................................................................................................................................27

Week 6:.................................................................................................................................................27

8. Work Samples:......................................................................................................................................28

9. Critical Analysis:...................................................................................................................................28

Business Communication:.....................................................................................................................29

Trade and Activation Department (Campaigns & Marketing):..............................................................29

Target Market Specific:.........................................................................................................................30

MIS Department:...................................................................................................................................30

Employee Satisfaction:..........................................................................................................................30

Product Diversification:.........................................................................................................................31

4 Ps:.......................................................................................................................................................31

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 Place:.....................................................................................................................................................31

Promotion:.............................................................................................................................................31

Product:.................................................................................................................................................32

Price:.....................................................................................................................................................32

10. SWOT Analysis:..................................................................................................................................32

Strengths................................................................................................................................................32

Global Brand:....................................................................................................................................32

Market Leader:..................................................................................................................................33

Customer Awareness:........................................................................................................................33

Extensive distribution channels:........................................................................................................33

Unique Products:...............................................................................................................................33

Pioneers of Pepsi:..............................................................................................................................33

Coordination with Departments:........................................................................................................33

Customer Loyalty:.............................................................................................................................33

R & D:...............................................................................................................................................33

Wide Range of Brands:......................................................................................................................33

Production:........................................................................................................................................34

Health Issues:.....................................................................................................................................34

Employees:........................................................................................................................................34

Less Marketing:.................................................................................................................................34

Departments:......................................................................................................................................34

Complex Supply Chain:.....................................................................................................................34

Opportunities:........................................................................................................................................35

Energy Drinks:...................................................................................................................................35

Expansion of Distributions:...............................................................................................................35

Mineral Water:...................................................................................................................................35

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 Signature Outlet:................................................................................................................................35

Threats:..................................................................................................................................................35

Employee Switching:.........................................................................................................................35

Customer Trends:..............................................................................................................................35

Competitive Environment:.................................................................................................................35

Launching of New Brands:................................................................................................................36

Environment Safety:..........................................................................................................................36

11. Conclusion...........................................................................................................................................37

12. Recommendations...............................................................................................................................38

References.................................................................................................................................................39

Overview of the Organization

Introduction of Organization

Pepsi Multan commenced its activities in 1967. Allah Nawaz Khan Tareen initially got license
for the production of 7up. It was the first plant of PepsiCo in Pakistan. In 1973 it became Pepsi
Cola franchise. Now days the managing director of Pepsi Multan is Alamgeer Khan Tareen, who
is the son of Allah Nawaz Khan Tareen.
In the early days, there was only one production plant constructed by Netherland and was only
producing 7up. Because it was the only brand that was being produced by the parent company at
that time. In 1973 the parent company acquired 7up plant in Canada, and since than Pepsi Multan
started producing Pepsi and Marinda along with 7up, and became Pepsi franchise. Coke was
already operating in the market at the time when Pepsi Multan was established. At that time
Coke was the market leader, but with the passage of time Pepsi Multan kept focusing on gaining
the market share. Recently Pepsi has launched a new brand with the name of Mountain Dew.
Now Pepsi Multan is working with five production plants capable of producing 100,000 crates
per day. Installation arrangements for two new plants are in process, which will increase the
production capacity further. Recently automated production plant was installed which has a
production of 70,000 crates per day. The manual plants installed have a production of around

12
30,000 crates per day. The plant which was installed at the time of establishment has now been
grounded. Pepsi Multan was once the market leader, but recently due to some weaknesses its
market share has dropped.
The company is properly serving all these areas with quality products. PEPSI Multan is ISO
certified.

Brief History:
PepsiCo is one of the world’s largest American based food and Beverage Company by spreading their
different products in more than 200 countries. It changed its name in 1965 when Pepsi Cola and Frito lay
Inc. merged together. Headquarter of company is in Purchase, Harrison, New York United States. The
first ever Pepsi-Cola created by Caleb Bradham in the decade of 1880’s.
In 1930’s trademark of company and assets were takeover by Charles Guth who was the founder of the
modern Pepsi-Cola, he also the one who established new Pepsi-Cola company.
In the early 21st century PepsiCo focused on expanding its operations in other countries specifically
Russia, which was the 2nd largest market. Pepsi is a brand now and so much diversified that even
Bradham imagined.

PepsiCo:
This is one of the prominent world’s leading companies specializing in foods and beverages by
delivering diversified products in more than 200 countries also have complimentary foods and beverages
more than 22 running brands and each brand generated estimated $1 million retail sale

Vision:

The vision statement is “we were number one, and we will be number one”. Their collective
success depends on their healthy balance strategies the organizations needs and the needs of their
employees and their families.

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 Mission:

To be the world's premier consumer Products Company focused on convenient foods and
beverages. We seek to produce healthy financial rewards to investors as we provide
opportunities for growth and enrichment to our employees, our business partners and the
communities in which we operate, and in everything we do, we strive for honesty, fairness
and integrity.”

OBJECTIVES:
The company operates through well experienced, loyal and hardworking employees. The first
“We aspire to make Pepsi Company the world’s premier consumer Products Company, focused on convenient
beverages. We seek to produce healthy financial rewards for investors as we provide opportunities for growth
and enrichment to our employees, our business partners and the communities in which we operate. And in
everything we do, we strive to act with honesty, openness, fairness and integrity”15 and the most basic plan it
to train them according to the changing technology and computerized environment, and satisfying their needs
and requirements. Upgrading the plant structure and installation of the new machinery are other plans. The
company is planning to increase its sales force and development in its infrastructure in the coming time period

Policy of the organization:

“An organization’s decision should be based on its established polices. Policies are the collective voice of
the governing body. This means the decisions made by the governing body are policy decisions they set
the direction for the organization to follow”

Strategy:
Strategy influences how to make trade-offs between various organizational options to accomplish long-
term goals and to retention of successful planning, apart from that in any organization strategy is very
important.

People:
“HR processes produces the talent that is required by the strategy and structure of the
organization.” Employees of any organization are a core property and surely we have to take care of them
no matter what they are up to if they are happy then they surely perform better.

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Structure:
“Structure determines the placement of power and authority in the organization.” By structuring
organization is able to manage its employees according to their capabilities and giving them authority.
Just like in IT department when they provide sim cards and mobile phones they installed tracker and keep
an eye on them during field.

Rewards:

Rewards are given to competitive employees by providing incentive and bonuses quarterly.

Processes:

After structuring processes help allocating and enable resources by effective work flow.

Competitors:

 Coca Cola Beverages Limited

 Dr. Pepper Snapple Inc.
 Monster Beverage Corp.
 Suntory Beverage & Food Ltd.
 Nestle water
 Local beverages companies

2. Organizational Structure

Organizational Hierarchy Chart:

Number of Employees:
PepsiCo have 6000-7000 employees working
effectively in Pakistan

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Main Offices:
 Multan  Hyderabad

 Lahore  Faisalabad

 Sukkur  Peshawar

 Gujranwala  Islamabad

Introduction of All Departments:

Production Department:

This department is responsible for the production of the products according to the
requirements of the customers and also controls the quality of the products as per PCI standards.

Administration & Personnel Department:

Administration & personnel department deals with the overall matters of the company
and takes different actions for increasing the performance of the company. This department also
carries out different social welfare programs.

HR Department:

Human resource department of Shamim & Co. is very active and they are always in touch with
employees moreover they are in touch with tracking department and keep an eye on those employees who
are not working actively according to their head of departments. Human resource department don’t prefer
to fire any employee but they try to retain them and giving them opportunity to perform better so they
focusing on job rotation so they may be performing better in any department if they do so they surely be
stick there. Along with that when interns go for an internship then HR department is the one who give
orientation to them and ask them if they need anything or have any query then they can contact directly.

Team Tracking Department:

This department is under the supervision of HR department keeping an eye on each and every employee
of organization, numbers which are provided by the company can be tracked from tracking department.

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Let say if SO of sales department that either order booker is in the field or not so they can be contact with
tracking department and know his exact location.

Marketing Department:

Marketing department always plays a key role in the success of any organization. Marketing team is
considered as assets for any factor who nourishes it through getting continuous orders. The marketing
department of this organization is assigned to make public dealing. The marketing department is
responsible to make advertisements of the company products and get them sold. Advertisement through
road site painting, wall chalking, billboard, TV adds etc. different schemes offered.

 Prize winning schemes

 Pepsi Ramadan offer
 Hajj scheme
 Umrah scheme

Sales Department:
Sales department is the backbone of any organization which generate sales for the company and helping
in profit maximization apart from that sales manager is one designing and implementing strategic sales
plans that expands company’s base and ensure its presence in the market through communication or by
assigning it to sales team for fulfilling that they also reward with various incentives, bonuses, trips and
many other home appliances.

Finance Department:
It deals with the financial matters of the company. It collects the revenues and makes different
payments and maintains proper record of the financial performance of the company’s business to
show the net result in the form of either profit or loss.

Audit Department:
Audit department is a section of Management Accounts Department a sub department of
Finance. Mr. Tahir Ameen (Manager Mgt. Accounts, Audit & IT) is head of department. The
immediate head of Audit is Mr. Javed Iqbal. It is a team of 6 members. The main responsibilities
of Audit are to verify physically the different stocks in all depots and godowns.

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Accounts Coordination Department:
It is a section of Finance department supervised by Mr.Shahid Nazir with a team of 3 members.
Their main task is to provide one window solution of bill clearing of sales & other staff and
different parties. They play a rule of coordination between party and accounts department.

Management Accounts Department:

Mr. Tahir Ameen (Manager Mgt. Accounts, Audit & IT) is head of department. Management
Accounts department is supervised by Mr. Asim who is Asst. Manager Mgt. Accounts. He is
supervisor of a team of 10 members.

Mr. Suhaib Khalid Mgt. Accounts Executive is Supervisor of 2 sub sections of Mgt. Accounts
(Clearance Inspection, with a team of 10 members and Waste control section with a team of 16
members). The responsibilities of Mgt. Accounts are to generate more than 60 reports to
calculate the performance of all departments on daily basis. This department makes the MD up to
date with every issue of the company.

Insurance Department:
It is a Sub Section of Finance. Head of Finance Department is Mr. Shoaib Tirmzi. It is a section
of 3 members. They deal with the banks and insurance companies regarding insurance of assets
and employees.

MIS Department:
Department which connect whole company with each other is IT department, main purpose of this
department is to make possible that every other department should connect with each other so they can
perform smartly as in this modern era this is very impartment to connect through website and other
servers, talking about websites and application a specific web. and app is develop just for sake of
information which is accessible by related departments and have records and data base of every day
activity perform. Even attendance of every employee is biometric which is also operate by IT department.
Two departments are working under MIS:
1- IT Support
2- IT Development

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IT Support department controls the all over the systems and networking of factory and DPG’S.
This department is under the working of Mr Saqib Javaid and IT Development makes new
software and controls the previous software. This department is under the working of Mr
Masroor Bhatti.

Key Accounts Department:

Every company need some executives who can directly contact with owners and CEO of different
restaurants, shops, hotels etc. Job of key accounts is to Retain specific point those who are operating with
Pepsi and selling its products they should retain with the organization ever, another job is to Convert
points to Pepsi those points who are in specially Coca Cola or any other point for that they offer them
many things or renovate owner’s shop or point and last one is New Point those points which are going to
be open should operate through Pepsi and surely retain with it. For conversion, retention and new points
key accounts department give different types of offers to shopkeepers or anyone who is running business
like giving them discounts in terms of advance discount and trade discount, or by giving deep freezer or
many other things according to sale point and order he produced.

Comments on Organization structure:

Shamim & Co. have no doubt well managed structure as all departments are connect with one another,
but one thing I would like to highlight that all of the departments should be at one place so upper
managers can have access to those departments specifically who are working behind the desk like IT
department and Finance department. Another issue I would like to mention about distribution owner is
that they don’t prefer or very pleased to listen managers those are operating through company there is
mostly conflict between distribution owner and Company executive. There are also some conflicts
between departments.
Marketing Mix
Marketing is the task of creating, promoting and delivering goods and services to consumers and
businesses. Organizations identify and profile distinct group of buyers who might prefer or
require varying products and marketing mixes. The customer seeks for value and satisfaction.
The organizations can increase the value of the customer offering in several ways e.g. raising
benefits, reducing costs etc. marketing mix is a set of marketing tools that the firm uses to pursue
its marketing objectives in the target market. These marketing tools are known as 4 Ps of
marketing.
Products

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 A product is anything that can be offered to a market to satisfy a want or need and a service is an
act or performance that is essentially intangible and does not result in the ownership of anything.
What products or services have to be offered to the target market depends on the market
requirement and also the organization’s profits. The organization will offer those products and
services, which result in maximum profits and minimum costs. The products related to soft
drinks offered by PepsiCo in Pakistan are as following.
         Pepsi cola
         Pepsi Diet
         7UP
         7UP free
         Miranda
         Mountain Dew
         Sting
         Slice juice
Price
It is second important tool of marketing mix because it plays a major role in determining the

customer’s choice. Also it is the only marketing tool that results into revenue.  The customer makes

a comparison between the prices offered by other companies and PepsiCo and then selects the

most suited offer. Following is the list of prices of different products of all brands.
Product Price
250ml Rs. 20
1000ml Rs. 65
1500ml/1750ml Rs. 85
300ml Rs. 35
500ml Rs. 45
250ml Sting Rs. 30
500ml Sting Rs. 60
240ml Slice Juice Rs. 25
Shamim and Co Bottling Company normally uses on going price strategy by seeing its major
competitor Coca Cola besides this company also uses Discount price strategy during special
occasions. Like Ramadan offer.
Place

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 The location of the organization plays a vital role in making its operations profitable. If the
organization outlets are located in some near markets then it will be very easy for it to attract
people. Therefore Shamim and co has most of its outlets at places where it can reach its targets
customer easily. Following are the major areas which come under operations of Shamim and co:

 Multan Bahawalpur
 Bahawalnagar Lodhran
 Rahim Yar Khan Sahiwal
 Pakpattan Khanewal
 Muzaffargarh D.G Khan
Major Customers in Multan
Following are some major customers of Pepsi Multan (Shamim and Company) in Multan city:
         Tasty Food Plus
         Mehboob Bakers
         Ideal Bakers
         Food Festival Network
         Chase Up
Shamim and co identifies their target market in Multan division through following ways:
 General stores
 Cold corners
 Parks
 Traffic areas and public areas
Promotion
PepsiCo is actively participating in promotion of its products and services through advertisement
and other promotional schemes. PepsiCo spends a major portion of its budget on advertising.
Advertising is done through different ways like.
Promotion through the their chillers and other materials such as refrigerators that are provided to
different shops with the LOGO of PEPSI are the ways of promotions which are included into
point of purchase promotions. Marketing by using different marketing mediums like electronic
and print media and using famous celebrities as endorsers and ambassadors of PEPSI, they
mostly use television ads for their promotions. PepsiCo has also developed its culture among

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children and Next Generation is its Slogan. Now Pepsi has become the need of everyone and it is
only possible due to its strong promotion.

Plan of Internship Program

Introduction of Office:
I have started my internship from Accounts & Finance department of Shamim & Co. and
spent my whole time Six weeks there under the same roof in different departments related to accounts and
finance.

Dates of Internship:
I have joined office as an internee on 20th May, 2019 and ended on 29th June, 2019

Departments and Duration

Audit Department:
During 6 weeks tenure I have completed 2 weeks of my internship in Audit department from 20 th
May to 2nd June, 2019 under the supervision of Mr. Ahsan and Mr. Imran.

Finance Department:
After spending 2 weeks in Audit department, the next department was Finance where I work from
3 June, 2019 to 16th June, 2019 with Mr. Waqas Tareen.
rd

Insurance Department:

On the fifth week the 3rd department was Insurance where I work from 17 th June, 2019 to 23rd
June, 2019 with Mr. Tahir Mehmood.

Accounts Coordination Department:

The last department where I work on the sixth week of my internship was Accounts Coordination
Department. Here I work with Mr. Wali Bukhari.

5. Reflective Journal Entries.

Week 1:

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 When I joined Shamim & Co. as an intern on first day assistant HR Mr. Muhammad Fahad took
my interview and after that all interns gather in conference room where Mr. Fahad and Ma’am Arshial
gave orientation about the company and assigned us to related department. They also told us Shamim &
Co. is also operating in out stations it is also the pioneer of Pepsi in Pakistan and share some information
about different departments. They send me to the Accounts & Finance Department. Where all
departments related to accounts and finance were working together under one roof. In this week our
supervisor was Mr. Ahsan Raja who was at the post of Audit Officer. He started with introduction of the
company and told us about different departments. On the next day he told us about the DPG’s (Duty Paid
Godowns) of the company. Company is having 4 DPGs in which 4 are in Multan, Rahim Yar Khan
Depot, Dera Ghazi Khan Depot and Muzaffargarh Depot. Then on the next day we move forward to the
different reports used in audit which were named as:

1- Filled Stock

2- Empty Stock

On the other days we work on the reports.

Week 2:

In Second week of audit department I was attached with Mr.Imran the Audit Executive. After Mr.
Javed he is the leader who leads the team of audit department. He told me about the different departments
the whole process that how the finished goods are delivered to the final customer. He told me about the
two main processes:

1- Loading/Unloading

2- Shipping Department

Loading/unloading process steps are as follows:

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Shipping Department process is as follows:

24
Following are the reports which are made on daily basis:
1- Usable Glass Summary
2- Reconciliation of Usable
3- Daily Plastic Shell Position
4- Pallets Utilization Report
5- Empty Shells & Pallets Position
6- Glass & Plastic Shell Report
7- Breakage Report
a- Calculation of Projected Breakage
b- Budgeted Breakage for glass
c- Actual Breakage
d- Breakage % on barred of loading

Week 3 & 4:

In 3rd & 4th week I continue my internship in finance department, over there I was supervised by
Mr. Waqas Tareen who is a finance executive. On day first he started with the interview and introduction
of department and told me about all his operations and duties he performed by his department. Those
were purchasing of raw material, Plant & Machinery, costing and budgeting. He told me about the raw
material used in making drinks i.e. CO2, Syrup Preform, Sugar etc.

His area of knowledge was very vast about the company’s operations. I worked with him for a complete
week and learned alot. He also told me about the two biggest religious events of Pakistan which causes
disturbance in projection those events were Eid-ul-Fitr and Eid-ul-Azha. The projection for the purchase

25
of raw material is made with the collaboration of finance and production department mostly. The
company purchased glass from Ghani Glass and Fridge & Freezers from Waves. Every year company
increases the budget projection by 10%.

Every year manufacturing/Production formula is:

Manufacturing every year = Previous YTD*1.10

Week 5:
In the 5th week of my internship I joined insurance department which was supervised by Mr.
Tahir Mehmood. He was the Insurance Officer there and this also comes under finance. In this department
I learned about how company manages its requirements to run the operation and need of machinery etc.
Company uses different banks for the insurance purpose. Meezan Bank Ltd. provides the services of
Leasing (Ijara) and Takaful to SCL. This also holds the data of drinks issued to KFC. It also manages to
send the bills to KFC and management of all activities related to Insurance.

Week 6:
This is the last week of my internship and I was sent to Accounts Coordination Department under
the supervision of Mr. Wali Bukhari. He was Accounts Coordination Officer there. He clears the
payments and bills received from other departments. My activities there was to maintain the data, separate
the bills RM (Routine Maintenance), AM (Annual Maintenance) and to write them in the Record
Maintenance Register. Mostly the excel sheets are used in the overall departments of the company. But in
this department data is also maintained in hard form. This department made payments according the
budget available to them. This department made payments through cash and pay order.

It was one of the best experiences in 6 weeks of internship period, I learn very much and realize many
things which surely be helpful for me in future.

Critical Analysis:
I am going to discuss bit of my theoretical knowledge which I gained through courses and
respected faculty of Institute of Management Sciences by applying it on operations and activities of
Shamim & Co. and critically analyze it in both positive and negative way with my practical experience in
this specific organization.

11. Financial Statements

11.1 INCOME STATEMENT

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 SHAMIM & Co.
2014 2013
000 000
Rupees Rupees
Net Revenues 6,534,934 6,508,670
Cost of goods sold 3,026,632 3,061,814
Gross profit 3,508,302 3,446,856

Selling, General and Administrative expenses 2,560,348 2,484,986

Amortization of intangible assets 9,016 10,780

Operating profit 938,938 951,090

Interest expenses (89,082) (89,278)

Income before income tax 849,856 861,812

Provision for income tax 215,502 206,192
Net Income 634,354 655,620

11.3 Balance Sheet

Shamim & Co.
2014 2013
000 000
ASSETS Rupees Rupees
Current Assets
Cash & Cash equivalent 601,132 918,750
Short term investments 254,016 29,694
Accounts & Notes Receivables 651,798 681,492
Inventories 308,014 334,082
Prepaid expenses & other assets 210,014 211,876
Total Current Assets 2,024,974 2,175,894
Non-Current Assets
Property, Plant & Equipment 1,689,912 1,820,350
Amortization of Intangible Assets 142,002 160,524
Goodwill 1,466,570 1,628,074

27
Other amortized intangible assets 1,238,622 1,411,290
Non amortized intangible assets 2,705,192 3,039,372
Investment in non-controlled affiliates 263,522 257,054
Other Assets 84,280 139,650
Total Assets 6,909,882 7,592,844

LIABILITIES AND EQUITY

Current Liabilities
Short term obligations 497,448 519,988
Accounts payable and other current liabilities 1,275,568 1,228,234
Total Current Liabilities 1,773,016 1,748,222
Long term debt obligations 2,334,458 2,384,634
Other liabilities 562,912 483,238
Deferred Income taxes 519,792 586,628
Total Liabilities 5,190,178 5,202,722
EQUITY
Capital stock 405,720 403,760
Retained earnings 4,811,016 4,549,160
Accumulated other comprehensive loss (1,045,562) (502,446)
Repurchase common stock (2,448,530) (2,058,392)
Total common share equity 1,722,644 2,392,082
Non-controlling Interest (2,940) (1,960)
Total Equity 1,719,704 2,390,122
Total Liabilities and Equity 6,909,882 7,592,844

12 RATIO ANALYSIS
12.1 LIQUIDITY RATIOS
The liquidity ratio is used to measure a company's ability to pay the short term obligations. This
ratio is basically used to have an idea of the company capability to pay off its short term
obligations which are usually debt and notes payables, with its short-term assets such as cash,
inventory, and receivables.
12.1.1 Current Ratio

The current ratio of Shamim and Company shows that the company has sufficient current assets,
which can be converted into cash easily to pay the obligations which can arise on a sudden. The

28
current assets in the year 2014 decreased a little because of the outflow of the cash in investing
and financing activities.
The Current Ratio = Current Assets/ Current Liabilities

2013 2014
1.24 1.14

12.1.2 Quick Ratio/ Acid Test Ratio

This ratio also measures the company’s ability to meet the short term obligations. But this
method is based upon a conservative approach, because inventories are also a part of current
assets, but can take time to be converted into cash. Therefore this ratio excludes inventories from
the current assets and uses only the most liquid assets to meet its current obligations. According
to the data I received, Shamim and Company could meet 93% of its current obligation with its
most liquid assets in the year 2013. Which reduced to 85% in 2014. The formula for calculating
the ratio is given below.
Quick ratio = (current assets – inventories) / current liabilities

2013 2014
0.93 0.85

12.1.3 Cash Ratio

Cash ratio is also used to measure the company’s ability to meet its current obligation but with
cash only, which does not need to be converted into anything else to pay the obligation. This is
based on the most conservative approach. You don’t have sell off your investments and other
current assets to get cash to pay the immediate obligations. Although the current ratio of Shamim
and Company decreased from 0.53 in 2013 to 0.34 in 2014, the company is still in position to
pay off almost 34% of current liabilities in 2014. Cash was reduced during the year of 2014,
because of increase in cash outflow in investing and financing activities. The formula for
calculating the cash ratio is given below:
Cash Ratio = Cash and Cash Equivalent/ Current Liabilities

2013 2014

29
 0.53 0.34

12.1.4 Working Capital

This ratio is actually used to measure the company’s financial health in a specific period. There
are the approaches related to working capital, conservative approach in which the company does
not take risk and the investing activities of the company are very low, where as aggressive
approach is opposite to it, in which companies are eager to take risks and therefore investing
activities are more. The moderate approach is in between these two approaches. During the year
of 2014 Shamim and Company leaned a little towards the aggressive approach, as the investing
activities increased by double during the year. Working capital is calculated by deducting current
assets from current liabilities, and it compares current assets with the current liabilities. The
current assets of Shamim and Company have stayed more than current liabilities in the past two
years.
Working Capital = Current Assets – Current Liabilities

2013 2014
427,672 251,958

12.1.5 Liquidity Performance

Liquidity ratios are used to determine a company’s ability to meet its short-term debt obligations.
Company that is consistently having trouble meeting its short-term debt is at a higher risk of
bankruptcy, liquidity ratios are a good measure of whether a company will be able to
comfortably continue as a going concern. From the data we can see that the current assets of the
company have stayed greater than the current liabilities, because of which the company has a
good financial position. The short term investments increased in the year 2014. The cash
decreased because of the increase in investing activities and because of the payment of some
short term obligations.

12.2 ACTIVITY RATIOS

Accounting ratios that measure a firm's ability to convert different accounts within its balance
sheets into cash or sales. Activity ratios are used to measure the relative efficiency of a firm

30
based on its use of its assets, leverage or other such balance sheet items. These ratios are
important in determining whether a company's management is doing a good enough job of
generating revenues, cash, etc. from its resources.
12.2.1 Receivable Turnover Ratio
This ratio is used to calculate the effectiveness of the company in the extending of credit and its
ability to collect the debts. It show the number of times during the year the company collects its
average accounts receivables. Higher the receivable turnover ratio the aggressive collection
policy and also more number of high quality customers. The collecting policy of Shamim and
Company is good enough, but still there is a room for improvement. The ratio shows a little
increasing trend. The formula for calculating the receivable turnover ratio is given below:
Receivable Turnover Ratio = Net Sales/ Average Gross Receivables

2013 2014
9.76 9.80

12.2.2 Days Sales in Receivables

This ratio is used to evaluate or calculate how long the customers of the company are taking to
pay. This show the efficiency of the company in collecting the receivables. The lower the ratio,
the more effective the management is, in collecting payments. The days sales in receivables ratio
of Shamim and Company is good enough and it remained same for both the years, indicating the
steady performance of the company. The formula for calculating the day’s sales in receivable
ratio is given below:
Days Sales in Receivables = Gross Receivables/ Net Sales x 365

2013 2014
37 Days 37 Days

12.2.3 Inventory Turnover

This ratio show the number of time the inventory of a specific company is sold during a year, or
is replaced during a year. The low inventory turnover ratio show that there is excess inventory

31
and there is poor sale. Company’s usually selling perishable goods have higher inventory
turnover ratios, as is the case in Shamim and Company. The syrup cannot be stored for weeks.
Therefore the inventory turnover ratio of Shamim and Company is good enough. Although it
decreased a little in 2014, but the change is minor.
The formula for calculating the inventory turnover is given below:

Inventory Turnover = Cost of Goods Sold / Average Inventory

2013 2014
9.67 9.40

12.2.4 Days Sales in Inventory

This ratio is used to calculate the time in days for a company to convert its inventory into sales.
The lower ratio indicates that the product of the company are well demanded, and therefore the
shorter the time in days the better it is for a company. The days sales is in inventory of Shamim
and Company has stayed almost the same in the last two years. It takes almost a month on
average to convert the inventory into sales. Further the sales increase in the summer season.
Pakistan is in a region where the summer has a longer spell. The formula for calculating days
sales in inventory ratio is calculated as bellow:
Days Sales in Inventory = Ending Inventory/ Cost of Goods Sold x 365

2013 2014
38 Days 39 Days

12.2.5 Operating Cycle
Operating cycle includes both day’s sales in receivable and day’s sales in inventory. Operating
cycle is used to find out the number of days a company usually takes in realizing, its inventory
into cash. If the operating cycle is less, which means the company’s cash is tied up for a short
period. The operating cycle in 2014 increased by one day, due to increase in day’s sale in
inventory by one day. The operating cycle is calculated as follows:

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Operating cycle = Days sales in Receivables + Days sales in Inventory

2013 2014
75 Days 76 Days

12.2.6 Operating Performance

Operating ratios activity ratios, measure the efficiency with which a business uses its assets, such
as inventories, accounts receivable, and fixed assets. The more commonly used operating ratios
are the average collection period, inventory turnover ratio, and inventory turnover in days. After
the calculation of some important activity ratios, we come to a conclusion that the performance
of the company’s management is good enough. The performance of the company has stayed
steady during the last few years. Companies selling perishable goods have higher inventory
turnover ratios, as is the case in Shamim and Company.
The syrup cannot be stored for weeks. Therefore the inventory turnover ratio of Shamim and
Company is good enough. Although it decreased a little in 2014, but the change is minor. The
operating cycle of the company has also stayed the same.

12.3 DEBT RATIOS

These ratios give users a general idea of the company's overall debt load as well as its mix of
equity and debt. Debt ratios can be used to determine the overall level of financial risk a
company and its shareholders face. In general, the greater the amount of debt held by a company
the greater the financial risk of bankruptcy.
12.3.1 Times Interest Earned Ratio
This ratio is used to find out whether the company is able to meet the interest expenses or how
much times greater or less the earnings before interest and tax is as compared to the interest
expense. It is also sometimes known as Interest Coverage ratio. The earnings before interest and
tax of Shamim and Company are over ten times the interest expense in both the years. This
shows the success of the company in the region. Creditors will always be in favor of such

33
company because it shows that Shamim and Company can easily afford its interest payments
whenever they are due. The formula for times interest earned ratio is given below:
Times Interest Earned = Earnings before Interest and Tax / Interest Expense
2013 2014
10.65 10.54

12.3.2 Debt Ratio

Debt ratio indicates the percentage of assets that are provided by debt. The debt ratio needs to be
lower. The higher debt ratio the more it is exposed to financial risk. Financial ratio should be
lower than one.  If the ratio exceeds one that means the company has more debts than the assets.
The Debt ratio of Shamim and Company is less than one, which is a okay, as the company was
incorporated in mid 1960s, it has developed a strong base. The debt ratio is calculated by the
following formula:
Debt Ratio = Total Liabilities / Total Assets

2013 2014
0.68 0.75

12.3.3 Debt to Equity Ratio

This ratio shows the relative portion of owners’ equity and debt used to finance the assets in the
company. It also expose the amount of debt financing in the business. High debt to equity ratio
can mean that the company is aggressive in growth financing. On the other hand if the company
is using less leverage than it has a strong position. Shamim and Company has high debt to equity
ratio. The company is well established and has the potential of taking risk, because in this way it
can generate more earnings. The formula for debt to equity ratio is given below:
Debt to Equity Ratio = Total Liabilities / Total Equities

2013 2014
2.17 3.01

12.3.4 Debt Performance

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Debt performance can be used to determine the overall level of financial risk a company and its
shareholders face. In general, the greater the amount of debt held by a company the greater the
financial risk of bankruptcy. The earnings before interest and tax of Shamim and Company are
over ten times the interest expense in both the years. This shows the success of the company in
the region. The Debt ratio of Shamim and Company is less than one, which is a fine. The long-
term liabilities increased in the year 2014, causing the debt ratio to increase.
There are no shareholders of Shamim and Company. The company is well established and has
the potential of taking risk, because in this way it can generate more earnings.

12.4 PROFITABILITY RATIOS

These ratios are used to assess a business's ability to generate earnings as compared to its
expenses and other relevant costs incurred during a specific period of time. For most of these
ratios, having a higher value relative to a competitor's ratio or the same ratio from a previous
period is indicative that the company is doing well.
12.4.1 Net Profit Margin
Net profit margin is used to find out, what portion of the total revenues is kept as the net income.
Higher net profit margin indicates that the company is running successfully. So is the case with
Shamim and Company, Pepsi and other drinks like 7up etc. are sold in the market throughout the
year. The net profit margin of Shamim and Company has decreased by 0.1 in the year 2014,
because the net profit of the company decreased a bit in 2014. This could be because of the
increase in the market share of Coca-Cola. The net profit margin is calculated by the formula
given below:
Net Profit Margin = Net Profit / Net Sales
2013 2014
0.10 0.09

12.4.2 Return on Assets

This ratio is used to find out the efficiency of the assets of the business in generating the profit
for that period. It measures the profitability. This ratio also gives an idea about how well the
management is in utilizing the assets of the company to generate the profit. The return on asset of

35
Shamim and Company has decreased a little because of the decrease of net income in 2014.
Return on Assets is calculated by the formula given below:
Return on Assets = Net Income /Average Total Assets

2013 2014
0.09 0.08

12.4.3 Gross Profit Margin

A financial metric used to assess a firm's financial health by revealing the proportion of money
left over from revenues after accounting for the cost of goods sold. Gross profit margin serves as
the source for paying additional expenses and future savings. The company’s gross profit margin
increased a little from the last year, because of the increase in revenues. The increase in revenues
could be because of the increase in price of 250ml bottles.
The formula for calculating gross profit margin is as following:
Gross Profit Margin = (Sales – CGS) / Sales
2013 2014
53 53.7
   

12.4.4 Profitability Performance

As the net revenues for the year 2014 were greater than 2013 and the corresponding cost of
goods sold decreased, the gross profit margin ratio was therefore greater in 2014. The company
spent more on selling and administrative expenses as compared to the last year. Pepsi and other
drinks like 7up etc. are sold in the market throughout the year. The net profit margin of Shamim
and Company has decreased by 0.1 in the year 2014, because the net profit of the company
decreased a bit in 2014. The return on asset of Shamim and Company has decreased a little
because of the decrease of net income in 2014.

13 Horizontal Analysis

36
 Balance Sheet
2013 2014
ASSETS % %
Current Assets
Cash & Cash equivalent 100 65
Short term investments 100 855
Accounts & Notes Receivables 100 95
Inventories 100 92
Prepaid expenses & other assets 100 99
Total Current Assets 100 93
Non-Current Assets
Property, Plant & Equipment 100 92
Amortization of Intangible Assets 100 88
Goodwill 100 90
Other amortized intangible assets 100 88
Non amortized intangible assets 100 89
Investment in non-controlled affiliates 100 102
Other Assets 100 60
Total Assets 100 91

LIABILITIES AND EQUITY

Current Liabilities
Short term obligations 100 95
Accounts payable and other current liabilities 100 104
Total Current Liabilities 100 101
Long term debt obligations 100 98
Other liabilities 100 116
Deferred Income taxes 100 88
Total Liabilities 100 99
EQUITY
Capital stock 100 100
Retained earnings 100 106
Accumulated other comprehensive loss 100 208
Repurchase common stock 100 119
Total common share equity 100 72
Non-controlling Interest 100 150
Total Equity 100 72
Total Liabilities and Equity 100 91

Interpretation

37
Total Assets and total liabilities and equities all decreased from the previous year. The major
change, or rather the major increase was in the short term investment of Shamim and Company
in the year of 2014. Looking at the cash flow statement, I found that there was an increase in
investing and financing activities of the company because of which the cash and cash equivalent
decreased to 65% in the year 2014.
Income Statement

2013 2014
% %
Net Revenues 100 100.4
Cost of goods sold 100 98.8
Gross profit 100 101.8

Selling, General and Administrative expenses 100 103

Amortization of intangible assets 100 83.6

Operating profit 100 98.7

Interest expenses 100 99.7

Income before income tax 100 98.6

Provision for income tax 100 104.5
Net Income 100 96.7

Interpretation
The management of the company was very effective in controlling the cost of goods sold,
because of which the gross profit of the company increased in 2014. The company might of used
different techniques to control the cost of goods sold, because of which the administrative
expenses increased by 3% from the previous year. Other than this the tax for the year also
increased. Although the gross profit for the year increased, but due to other expenses the net
profit was lower than the previous year.
14 Vertical Analysis
Balance Sheet
2013 2014
ASSETS % %
Current Assets
Cash & Cash equivalent 12.1 8.7
Short term investments 0.4 3.6
Accounts & Notes Receivables 8.9 9.4

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Inventories 4.4 4.4
Prepaid expenses & other assets 2.8 3.0
Total Current Assets 28.6 29.3
Non-Current Assets
Property, Plant & Equipment 24 24.4
Amortization of Intangible Assets 2.1 2.0
Goodwill 21.4 21.2
Other amortized intangible assets 18.6 18
Non amortized intangible assets 40 39
Investment in non-controlled affiliates 3.4 3.8
Other Assets 1.8 1.2
Total Assets 100 100

LIABILITIES AND EQUITY

Current Liabilities
Short term obligations 6.8 7.2
Accounts payable and other current liabilities 16.1 18.5
Total Current Liabilities 23 25.6
Long term debt obligations 31.4 33.8
Other liabilities 6.4 8.1
Deferred Income taxes 7.7 7.5
Total Liabilities 68.5 75.1
EQUITY
Capital stock 5.3 5.8
Retained earnings 60 69.6
Accumulated other comprehensive loss (6.6) 15.1
Repurchase common stock (27.1) (35.4)
Total common share equity 31.5 24.9
Non-controlling Interest (0.03) (0.04)
Total Equity 31.4 24.8
Total Liabilities and Equity 100 100

Interpretation
Total current assets of Shamim and Company increased in the year 2014. Among the current
assets the major increase was in the short term investment. The retained earnings in the year
2014 were also more than the retained earnings in 2013. Total equity in 2014 was lower than the
last year, whereas the total liabilities were greater in 2014 as compared to the last year, because
of the debt to equity ratio in 2014 was greater than the past year, as calculated in ratio analysis
portion.
Income Statement

39
 2013 2014
% %
Net Revenues 100 100
Cost of goods sold 47 46.3
Gross profit 53 53.7

Selling, General and Administrative expenses 38.2 39

Amortization of intangible assets 0.16 0.14

Operating profit 14.6 14.4

Interest expenses 1.37 1.36

Income before income tax 13.2 13

Provision for income tax 3.2 3.30
Net Income 10 9.7

Interpretation
As discussed earlier, the company tried to control cost of goods sold, because of which cost of
goods sold was lower in the year 2014, and therefore gross profit in the year 2014 was higher
than the year 2013. The administrative expenses and the tax for the year 2014 were higher than
the last year, because of this the net income was lower than the past year.

PESTEL ANALYSIS:

POLITICAL FACTOR
In Asia and especially in Pakistan where the political environment is not stable no Government has
completed its tenure except the last and the politics also a great influencer on the different industries of
the country. Now following are the effects on the beverages industry.
 The govt. decides that what will be the rates of sales tax

 The rates of main operating variables inputs such as the Electricity are also decided by the
govt.
ECONOMICAL FACTORS

40
The country like Pakistan whose economy is not strong enough is affected by so many economic
variables which are the following.
 Low literacy rate is a problem due to which rural customers are not able to differentiate between
PEPSI and Coke and etc.

 Employment opportunities will be higher.

 Increasing demand of PEPSI requires establishment of new production plants.

 Combined pricing decisions with mutual agreement between PEPSI and Coke.

41
SOCIAL FACTORS

The social factors of each society and culture are different from each other so these also influence the
industries as well.
 Now it has become a trend that soft drink should be served in almost every gathering.

 Fast food popularity among teenagers has led to the increase in demand of PEPSI.

 Social welfare program is also active at PEPSI for example PEPSI donated 1 million Rs. For
helping recent earth quake victims.

 They have been sponsoring different cricket events and Pakistan cricket team for almost 10 to15
years.
TECHNOLOGICAL FACTORS

Today is the era of Technology whether it is Information Technology or Production Technology so the
PEPSI is also affected by these. Following are some of these.
 Previously there were separate production plants for the production of specific brand size.

 Now they have installed a new production plant which is capable of producing different brand
sizes at the same time.

 The plant which they installed at the time of establishment has now been grounded.

 The sixth production plant which is currently being installed is imported from Germany.

 The seventh production plant which is currently being installed is the latest that is imported from
Italy.
ENVIRONMENTAL FACTORS
 They are having an ammonia plant installed within the residential area of Multan so they
have to follow environment safety laws imposed by govt.
 As they are having no solid waste but they have to make special drainage arrangements for
the disposal of water used to wash empty bottles before filling them

42
 LEGAL FACTORS

As there is no concept of profit repatriation so the govt. involvement in profit distribution is nil.
 Laws regarding working condition, working hours and child labor are also enforced by govt.

 Because of their location in residential and urban area they are not able to perform loading
and unloading of trucks in day time because trucks can’t enter in urban areas in day time. So
they can only load and unload trucks between 10 PM to 6 AM.

10. SWOT Analysis:

SWOT analysis is the tool which identifies of strengths, weakness, opportunity and threats of the
company. It highlights the strengths of the company, what weaknesses has to tolerate, what are the
opportunities that company can avail and the threats company have to face in the market by customers as
well as competitors. SWOT analysis the procedure which helps company to plan effectively.

43
Strengths

Global Brand:
Pepsi is globally acceptable brand which is operating in more than 200 countries by providing
their quality products.

Market Leader:

Pepsi is leading market by containing 36.5 % market share globally, which surely is a huge
achievement.

Customer Awareness:
Pepsi came earlier than Coca Cola in Pakistan and the capture market effectively; reason is every
single person who is talking about beverage surely know about Pepsi.

Extensive distribution channels:

It is clear that Pepsi is reaching each and every corner of the whole world for the consumers.
When we talk about Shamim & Co. it covers huge geographical area of south Punjab through distributors.

Unique Products:
Pepsi have a high brand image as it is producing some unique products and effectively market it
better than anyone else like Mountain Dew and Sting. No other company offers these tastes which make it
more demanding.

Pioneers of Pepsi:
Shamim and Co. are the pioneer of Pepsi in Pakistan that is one of the strongest reason is that it
has huge word of mouth rural and urban areas.

Coordination with Departments:

Company has great coordination between departments and always in touch with each other
through advance technologies and cheaper way. Through which they can perform much better.

Customer Loyalty:
Customer loyalty regarding Pepsi is very high in Pakistan which makes ultimately its competitive
edge.

44
R & D:
Shamim & Co. have its own research and development department which identify flaws and
failures in sales or any other activity, through which they planed accordingly to resolve them.

Wide Range of Brands:

Pepsi have a wide range of brands like Pepsi, 7up, Mountain Dew, Mirinda, Sting some of them
are unique that any other company can’t produce. These brands are highly acceptable by target audiences.

Production:
Shamim & Co. have very huge capacity of production approximately 200,000 cases every day

Weaknesses

Health Issues:

In Pakistan there are many issues regarding pesticides use in different things and especially
chemical used in beverages. Day by day customers are more conscious about their health and we can’t
deny that excess using of carbonated drinks could be dangerous for health. So it could problem for
maximize sales.

Employees:
One of the biggest weaknesses is not to give equal respect to each and every employee of
company which makes them possible to run especially low level employees who directly interact with
retailers.

Less Marketing:
Nowadays Coca Cola efficiently market its product through different ways through bill board and
prominently through TVC television commercials with very unique ideas and according to running trend
or make it. But Pepsi is far behind in TVC which may cause that Coca Cola is captured enough market.
Unlike before the most unique ad which includes a character which becomes signature of 7Up they are
just focusing on DEW and Sting rather than their core brand.

Departments:
Although Shamim & Co. is using advanced technologies for communication but still it is important to
interact with each other, but departments are apart from each other like R & D department in Cantt, Key

45
Accounts in Khawar Center, Production in MDA, Finance in Some residential area even TOT department
is in industrial state which may cause difficulty for coordination.

Complex Supply Chain:

Pepsi is a multinational brand so it has
very complex network of supply chain. When
we talk about Shamim & Co. it is spending a lot
of investment for maximum availability of
products everywhere but somehow they are
unable to do so and can’t manage either.
Availability of every SKU is not possible every
outlet especially in rural areas.

46
Opportunities

Energy Drinks:

As the company sets bench mark of energy drinks in Pakistan that any other company unable to do this so
it is great opportunity to promote more their energy drinks as young generation are highly demanding these days.

Expansion of Distributions:
Pepsi has a great opportunity to expand their distribution network, no doubt Pepsi is available almost
every corner in world but still that needs improving in availability of product.

Mineral Water:

People nowadays are very conscious about their health and prefer to use pure things especially to eat and
drink, although AquaFina reach its success but it is an opportunity for Pepsi to introduce another brand of Mineral
Water in market to maximize profit.

Signature Outlet:

There is a clear opportunity to open a new outlet by exclusively selling Pepsi and its respective brands. It
surely is a good way of promotion through selling.

Threats:

Employee Switching:
This is the biggest threat for any organization when its employee switch to other company after getting
experience and skills from the organization just because of not getting paid well and for not receiving enough
benefits.

Customer Trends:
Customers are becoming more demanding these days and having maximum information about product’s
ingredients. So they prefer to move towards healthier products and spend more on them.

Competitive Environment:

The biggest competitor of Pepsi is Coca Cola and in Multan many of the retailers are converting to Coca
Cola by not getting proper supply.
Launching of New Brands:
Launching of new beverage brands in the market is great threat for company which could be challenging
for sales maximization, as these brands introduce their products in market on low price which attract consumers
having low income especially those who belong to rural areas.

Environment Safety:
While increasing in population people increasing their properties, this is why Pepsi factory is in between
residential area that is the reason government authorities and representatives of health departments are
pressurizing company to move out from residential area.

Govt. Regulations:
The ban on Soft drinks in Schools, Colleges and Universities has also decreases its sales.
 11. Conclusion
According to my observation and my experienced I spend in that organization reason of its success and
survival surely be its seniority no doubt they are managing very well in multiple areas but there is lack of
management I the area of employee satisfaction. Shamim & Co. have both types of employee smart worker and
hard worker by the mixture of which they can easily capture market before any other company can take it.

Mismanagement issues can be caused due to Shamim & Co. doesn’t have all departments under an
umbrella and in different areas and some of these offices are in residential area which kinds of unprofessional for
a multinational. There is another thing promotion which is weak point of Shamim & Co. and Coca Cola is taking
over of it much better than Pepsi. On the other side retailers are showing loyalty with Pepsi as Pepsi providing
them visi- cooler, Chiller and different type of discounts which causes maximization of sales.

Through distribution system products of Pepsi are available in almost every corner but still there is a need
of improvement in rural areas where many of the products are not available especially tin packs of Pepsi and 7up.
Although its prominent SKU Mirinda is taken for granted and just focusing on promoting DEW and Sting. They
also try to increase sales of Pepsi Cola which is its core brand but through pushing strategy. As already mentioned
about integration and coordination of departments within the organization they make decisions after getting
results from research and development department for example in case of product diversification, research and
development department plays vital role for making decisions by executive personal of Shamim & Co.

I would like to conclude my discussion by highlighting alarming situation about employee satisfaction and their
motivation regarding there are of interest and the area they are working in many of the organization using a
successful strategy of Job Rotation as well as Shamim & Co. apart from that they should have enough facilities
through which they happily work on the behalf of organization and spreading positive word of mouth.
12. Recommendations
First and foremost I like to discuss about employee satisfaction and I recommend that company should
understand nature of their (low level employees) work they represents company in the market through their
feelings, behavior positive or negative comments about organization, so company should take care of their
employees so they don’t switch to other company and stay loyal with the organization. Everyone have a different
mode or level of satisfaction like some of them just need money, some of them may be satisfy by getting
appreciation, let them feel that they are most important part of organization and then they perform beyond your
expectations.

Another problem which I want t discuss is availability of products even in rural areas because these areas
are sensitive and they should takeover it even this is easy for Pepsi as low literacy rate in backward they can
easily be manipulate and converted into any other brand. In rural areas Pepsi Cola is the signature of black water
even though it is available or not so it should be available. Products
Company should promote through them just like they are giving discounts
in urban areas they should give in rural areas to for retailer satisfaction and
maximize sales.

There are lack of promotion activities and campaigns done by

Shamim & Co. unlike other companies who are promoting their products
by sponsoring various events, giving away free sampling, and TVC they
are focusing on energy drinks by targeting youth and no doubt it is
successfully done by recent activities and events but they also have to focus on core brands of their like Pepsi and
7up especially. Pepsi introduce a new strategy through sting by engaging customers through fitness challenge
from celebrities like international boxer Amir Khan by #ChallengeTheKing.
References

www.pepsico.com

Mr. Muhammad Afzal (Executive Finance)

Mr. Imran (Audit Executive)

Mr. Waqas Tareen (Executive Finance)

Mr. Tahir Mehmood (Insurance Officer)

Mr. Waleed Bukhari (Accounts Coordinator)

Rao Amjad Taufeeque (IT Procurement Officer)

Mr. Muhammad Fahad (HR department Shamim & Co.)

Ma’am Arshial (HR department, Shamim & Co.)