FACULITY OF BUSINESS

DEPARTMENT OF MANAGEMENT

INTERNSHIP COMPANY: NATIONAL ALCOHOL & LIQUOR

FACTORY

BY: Leul yilma

COMPANY SUPERVIOSUR: HAIMANOT T. (HR TEAM LEADER)

Table of Contents
ACKNOWLEDGMENT..................................................................................................................i
CHAPTER ONE..............................................................................................................................1
INTRODUCTION...........................................................................................................................1
1.1 Overall Introduction...............................................................................................................1
1.2 Background of the Organization............................................................................................1
1.3 Types of Products...................................................................................................................3
Pure Alcohol.....................................................................................................................3
Denatured Alcohol and.....................................................................................................3
Different types of alcoholic drinks....................................................................................3
1.4 Number of Employees...........................................................................................................4
1.5 Major markets served.............................................................................................................5
1.6 Current Revenue Size and Profit (Annual Budget)................................................................5
1.7 Vision, Mission and Values of the Company........................................................................7
Vision................................................................................................................................7
Mission..............................................................................................................................7
Values................................................................................................................................7
1.8 Background of Field of Practice............................................................................................7
1.9 Organization’s Activities (Practice of the Agency Organization).........................................8
Strategic Planning Practices..............................................................................................8
Organizing Human Resource............................................................................................8
Human Resource Planning Practice................................................................................10
Recruitment.....................................................................................................................10
Selection..........................................................................................................................11
Orientation......................................................................................................................11
Career Development.......................................................................................................11
Motivating Employees....................................................................................................11
Decision Making Practices..............................................................................................12
Evaluating Managerial and Organizational Effectiveness..............................................12
CHAPTER TWO...........................................................................................................................13
ACTUAL WORK EXPOSURE....................................................................................................13
2.1 Work Performed...................................................................................................................13
 2.2 Educational Value of the Internship.....................................................................................14
2.3 Relationships: Classroom Experience to Actual Work Environment..................................14
2.4 SWAT Analysis of the Organization...................................................................................15
Strength...........................................................................................................................15
Weakness........................................................................................................................15
Opportunities...................................................................................................................15
Threats.............................................................................................................................16
CONCLUSION..............................................................................................................................17
ACKNOWLEDGMENT
First of all, thanks to GOD who without him nothing can be done at all.
Second, I would like to thank my family and my internship supervisors both in the school and
internship company to share me their experience with full respect and happiness.

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 CHAPTER ONE
INTRODUCTION
1.1 Overall Introduction
An internship is a professional learning experience that offers meaningful, practical work related
to a student’s field of study or career interest. An internship gives a student the opportunity for
career exploration and development, and to learn new skills. Internship program is very useful
for students to get practical experience for what we learn theoretically for the past few years in
the class room. This program takes one summer semester starting from July 1,2024 to August
31,2024 in our university.

On this regard a was able to take this internship program and I had applied for my internship
company National Alcohol & Loury Factory which is found in Addis Ababa around Mekanisa.
Then they accept me to share their experience and to practice what I was learning theoretically.

1.2 Background of the Organization

National Alcohol and Liquor Factory, is a state-owned business enterprise, which has been
operating for more than a century is a pioneer in Ethiopia’s liquor industry. The factory is
engaged in the production and distribution of Extra Neutral Alcohol (ENA) and various alcoholic
liquors of high quality both for domestic and export market. The factory comprises four branch
factories (two of them operational and two of them service giving) which was once established
and owned by individuals in different period. It acquired its current name after being
nationalized by the dreg regime in 1976.

 The branch factories are named as

 Maichew Branch Factory (Established in 1906 E.C)
 Mekanissa Branch Factory (Head Office & Established in 1949 E.C)
 Sebeta Branch Factory (Established in 1898 E.C)
 Akaki Branch Factory (Established in 1930 E.C) Not operational for the
time being.

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National Alcohol & Liquor Factory occupies a pioneering status signaling a major breakthrough
in the onset of beverage industrialization in Ethiopia over the last century. The factory improved
its manufacturing technologies and production capacity through time and reached in producing
3.2 million liters of Pure Alcohol & 7.3 million liters of alcohol liquors annually during 2015
using its old machineries. But, at this time the factory realized that liquor products supply to the
local market is short of supply in most cases. Hence, the factory’s management & Board of
Management decided to conduct market & feasibility studies. The study clearly indicated the
growth of demand for liquor products & feasibility of the project. The feasibility study also
showed the existence of growing demand of liquor products abroad. The Factory then, started to
implement Rehabilitation & Expansion of its old & downsized plant Machineries.

The Expansion in addition with the Rehabilitation increased the production capacity of the
Factory to more than fourfold of the previous capacity. Currently, the new plant at Mekanissa
has 18,000 liters ENA per day production capacity. In addition, the factory has erected a new
distillery at Sebeta with production capacity of 12,000 liters per day; which will enhance the
factory’s overall production capacity to rise to 30,000 liters per day. Recently, our annual
revenue exceeds USD 23 million/665 million birr/. When Sebeta enters into line the revenue will
again exceed to more than USD 45 million/1.2 billion birr/. The company’s profit is also
expected to rise to USD 14 million/390 million birr/ from its current level of USD 8 million/229
million birr/. It is also contributing to the national economy by paying USD 7 million/197
million birr/ as excise tax. With the launching of the new plant, we expect to pay USD 13
million/364 million birr/ excise tax.

The factory is implementing various systems and certified by ISO 9001:2015, ISO 14001:2015
and on progress to be accredited by ISO/IEC 17025: 2005 Laboratory Management System.

The present National Alcohol and Liquor Factory have grown in to far-reaching reputation for
mounting quality and taste of its variety products among the public all over the country and to
foreign market.

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1.3 Types of Products
Currently the factory produces and distributes the following products: -

 Pure Alcohol
This is the final product of the distillation process and has an alcoholic content of 96%. It is used
for many purposes. Among which some of them are

 For production of different liquors.

 For preparation of medicine.
 For laboratory work.
 For perfumes and cosmetic production.
 For production of chemical and plastic products.

 Denatured Alcohol and

Which is the by-product in the distillation process with an alcoholic content of 95%. This
product is used for many purposes. To mention few of them are:

 For clinical purpose,

 For beauty salons and barberries,
 For cleaning electrical equipment’s,
 For cooking purpose,
 For band saws in ripping logs into boards and cutting very thick wood.

 Different types of alcoholic drinks

The different varieties of liquors are produced in from pure alcohol in bottling plant. In the
bottling plant each glass bottle is filled with 1L and 890ml of liquor except the pet bottles with
250ml of liquor.

1.4 Number of Employees

Any organization need skilled and adequate number of man power for its sustainability. National
Alcohol and Liquor Factory also have number of employees in different sectors starting from the
top manager up to lower-level employees in it’s all branches.
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 Man power
N Company
Permanent Contract Temporary sum
o. name
M F sum M F sum M F sum M F sum
National 13
342 479 18 8 26 7 0 7 367 145 512
1 Alcohol and 7
Liquor Factory Outsourced 394
Total Sum 906

The number of employees has been increasing from time to time, due to an expansion of the duty
and increment of products from time to time.

1.5 Major markets served

National Alcohol and Liquor Factory is the leading factory in manufacturing & selling
Liquor and Alcohol products to local and export market. Products of the company are
exported to different countries. From those countries the major export areas are South Sudan,
Israel, Germany and Kenya and also now the company is trying to export it’s different
products to China and America.

The customers are depending on the product type: -

- For liquors: -Addis Ababa agent and customers (grocery, hotels, bar and
restaurant owners), and region agents.

- For pure Alcohol: -pharmaceutical factories, research and development

institutions, ministry of defense,

- For denature alcohol: -hospitals, barber shop and beauty salons, …

1.6 Current Revenue Size and Profit (Annual Budget)

An annual budget is a plan for a company’s projected expenditures over the course of a year.
Revenue is also known as sales which is the money generated from normal business operations,
calculated as the average sales price times the number of units sold. Profit is the amount of
income that remains after accounting for all expenses, debts, additional income streams and
operating costs.

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1.7 Vision, Mission and Values of the Company
 Vision
We aspire to be the best pure alcohol and liquor products producer and distributor in the
local market and become competent at 2030 in the export market.

 Mission
To fully satisfy our customer’s needs and expectation by producing high quality alcohol and
liquor products consistently using modern technology, applying modern management system and
employing experienced and qualified professionals and also satisfy other stakeholders by
creating value as well as enhancing the well-being of the society and protecting the environment
to contribute our share for the growth of our country.

 Values
 Customer focused,
 Quality & improvement driven,
 Team oriented,
 Accountability,
 Transparency,
 Socially responsible;

1.8 Background of Field of Practice

National Alcohol and Liquor Factory have different departments from those I was assigned for
internship in Human Resource Department. Human Resource department is a group who is
responsible for managing the employee life cycle (i.e., recruiting, hiring, onboarding and firing)
and administering employee benefits. This department also give training for employees in their
weak area. The trainings may have different purposes like for example to improve employee’s
communication skills, customer handling, machinery maintenance and also to support the
strategic plan of the organization. One employee can train at most 5 trainings in 1 year because
the employee should not be absent from his/her work because of training.

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1.9 Organization’s Activities (Practice of the Agency Organization)
 Strategic Planning Practices
Strategic Planning is a process in which an organization’s leaders define their vision for the
future and identify their organization’s goals and objectives. All employees and stakeholders are
working toward common goals, establish agreement around intended outcomes/results, and
assess and adjust the organization’s direction in response to a changing environment.

In the case of National Alcohol and Liquor Factory the following steps apply during the Strategic
Planning Process: -

Step 1: Getting Ready/Initiating the planning process Results in a work plan

Step 2: Assess the organization/ Internal
Step 3: External environment Assessment
Step 4: Developing the Mission and Vision Statements
Step 5: Developing Strategies, Goals and Objectives
Step 6: Completing the Written Plan
Step 7: Review the plan

 Organizing Human Resource

Organizing Human Resource is the function of HRM that involves developing an organizational
structure to ensure the accomplishment of the organizational goals. The structure is usually
represented by an organizational chart, which provides a graphical representation of the chain of
command within an organization. National Alcohol and Liquor Factory also have its own
organizational structure.

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  Human Resource Planning Practice
Human Resource Planning helps organizations recruit, retain and optimize the deployment of
environment. National Alcohol and Liquor Factory have its own steps for HR planning practice.

Step 1: - Analyze Organizational Objectives

Step 2: - Inventory Current Human Resource and Review the past 3 years HR history

Step 3: - Forecast Demand for the next year

Step 4: - Formulate the Human Resource Action Plan

Step 5: - Implementing the Plan

Step 6: - Monitoring, Control and Feedback

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  Recruitment
Recruitment is the process of finding, screening, hiring and eventually onboarding qualified job
candidates. To increase efficiency in hiring and retention and to ensure consistency and
compliance in the recruitment and selection process, National Alcohol and Liquor Factory
implement the following steps as Staff Recruitment and Selection Hiring Checklist.

Step 1: Identify Vacancy and Evaluate Need

Step 2: Develop Position Description

Step 3: Develop a Recruitment Plan

Step 4: Select Recruitment Committee

Step 5: Post Position and Implement Recruitment Plan

Step 6: Review Applicants and Develop a Short List

Step 7: Conduct Interviews and entry exam

Step 8: Select Hire

Step 9: Finalize Recruitment

Note: - The position description is already prepared document with the organizational structure
except there is new position demand and also the organization gives priority for its internal
employees for any vacancy.

 Selection
Selection is a process of choosing the most suitable candidate from the applicants. It is putting
the right person for the right job. Selecting the best candidates is the final process of the
recruitment process that the recruitment committee selects based on the entry exam and
interview result.

 Orientation
Orientation is given to new employees before joining the job. The orientation helped new
employees to become familiar with the work setting and the tasks he/she is supposed to carry
out. Furthermore, an induction document and employee association agreement documents are
given, an induction program is prepared for welcoming and awareness creation on the overall
organizational culture and objectives.
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  Career Development
Career Development is the process of self-knowledge, exploration and decision making that
shape employees career. It requires successfully navigating employee’s occupational options to
choose and train for jobs that suit their personality, skill and interests. National alcohol and
Liquor Factory gives different opportunities for its employees to develop their career like giving
priority to vacancy for internal employees, giving training for employees in their weak area and
give the opportunity to learn in higher educational center for employees.

 Motivating Employees
Motivating employees leads the company for sustainable development and employee
satisfaction. In National Alcohol and Liquor Factory case the following activities have done: -
 Well performer employees’ recognition
 Annual bonus and salary increment
 Providing medical services on the company clinics and at contracted health facilities
 Monthly subside the cafeteria for employees to use the service at an affordable price.

 Decision Making Practices

Decision Making Practice is a process which is choosing the best alternatives from the list. Any
company must decide with respect to the organizational objectives and strategies. In National
Alcohol and Liquor Factory decision making has steps.

Step 1: - Define the problem

Step 2: - Identify the alternatives

Step 3: - Choose the best alternative

Step 4: - Implementing

Step 5: - Evaluating the result.

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  Evaluating Managerial and Organizational Effectiveness
Organizational Effectiveness is defined as a concept to measure the efficiency of an organization
in meeting its objectives with the help of given resources without putting undue strain on its
employees. Every organization evaluate its employees. National Alcohol and Liquor Factory also
has performance appraisal twice a year. Every employee evaluated by their manager out of 100%
but before evaluating them the employees must sign in the evaluation paper to have their willing
to be evaluated by the managers.

CHAPTER TWO
ACTUAL WORK EXPOSURE
2.1 Work Performed
In the past 2 months I was performed different works in the organization. Each works needs its
own work experience and all jobs differ each other.

In the first two weeks my work responsibilities were simply arranging employee’s personal files
and organizational letters, removing dead files, preparing employees annual leave form and
arrange their annual leave letter and preparing large number of similar format letters for
employees like salary incremental letter.

Through time my responsibilities are changed in terms of scope and quantity. As I describe in
my second biweekly report my responsibility was to scan employee’s necessary files like
employee’s history, pension 1 form and hiring letters to have their pension ID number. This
responsibility was very large responsibility and it give the chance to communicate the employees
personally. This chance gives me the opportunity to develop my communication skill and
customer handling skill.

For my internship I was assigned in human resource department so, in this department there are
different duties like recruiting new employees. At the beginning of the second month there was a
recruitment on the position of sales man. So, I was responsible to accept applicant’s documents
and give them application letter. Then I have to screen (arrange) their documents and report to
recruitment committee for selection.

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At the end of the internship period, I saw about how to prepare weekly, monthly and semi-annual
reports. These reports are prepared in human resource department for middle level managers
about works done in the previous period like number of employees turned over, number of new
employees, absent rate of the employees, number of employees which retire in the previous
month and other information are included in the reports.

2.2 Educational Value of the Internship

Basically, the most valuable aspect of an internship is getting to learn the practical skills related
to a particular area of study. Translating textbook knowledge to real applications is an essential
way to continue one’s education and to foster a more concrete understanding. In the past two
months I had the best time ever in practicing my theoretical knowledge in the actual work
environment. I get different experiences from my internship supervisor and also from other
workers in the organization like:-

 How to dress in the office,

 How to handle different customers,
 About time management,
 Getting good recommendation from experienced persons,
 How to communicate with different employees in different situations,
 About the relationship of managers and lower employees,
 How to motivate employees,
 The overall process of recruiting new candidates,
 Having the chance to know my strength and weakness in the actual working area,
 And also I had the access to see a variety of tasks and departments.

So, internship is very important thing for students to be successful in their actual work area in the
future.

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2.3 Relationships: Classroom Experience to Actual Work
Environment
For the past 3 years I was learning different course in the classroom. Each course has their own
scope and study area. For my internship the course that helps me a lot is Human Resource
Management course and also the other course are very help full for the actual work environment.
For example, I was learned about recruitment, interview and selection process, orientation for
employees, planning and communicating with others in the classroom and these things are
happen in the actual work environment. And also, other things like calculating employee’s salary
and pension, about production, recording financial statement of the organization which are
learned in the classroom are happened in different departments.

2.4 SWAT Analysis of the Organization

 Strength
Strength is the quality that allows someone to deal with problems in a determined and
effective way. National Alcohol and Liquor Factory has its own strength like an
organization. Form its strength,
 The company is very computerized in its work
 It appreciate employees in different things like annual bonus and salary
increment
 Its attention for product quality
 And the relation between top level managers and other employees are so
nice.

 Weakness
Weakness is a quality or feature that prevents someone or something from being
effective or useful. The company’s weaknesses are,
 The company take a lot of time to hire new employees starting from the
recruitment time,
 The company did not complete the employee file on time.

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  Opportunities
Opportunity is an advantage and the driving force for an activity to take place. The
organization gives different opportunities for employees like,
 Given the opportunity to learn in higher educational center for employees,
 Giving priority to vacancy for internal employees,
 Giving the opportunity to train in different areas,
 Give its products for its employees in holidays.

 Threats

Threat is the possibility that something bad or harmful could be happen. At every stage of
alcohol production there is an environmental footprint from growing the raw ingredients, to
manufacturing; through to packaging and transporting the finished product. As the population of
the world grows, so does the demand – on land – to produce food to sustain people.

So, when land is given over to growing crops for alcohol production, this clearly reduces food-
growing capacity. Unlike food, alcohol is not essential to life. So, National Alcohol and Liquor
Factory have these threats to the external environment and also for the population. There are also
other threats like competitors, new regulations and change in technologies are threat for the
organization.

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CONCLUSION
In the past two months I was learning different things practically from experienced people. This
internship practice is so nice to all students for the future when we get to work. It teaches us
about everything which is found in in the actual work environment practically rather than
theoretical knowledge. And also National Alcohol and Liquor Factory is a good organization for
internship practice.

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