Pak Electronic Ltd.

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PAK ELECTRONIC Limited.

Pak Electronic Limited (PEL) is operating in Lahore city of Pakistan. PEL is listed in Karachi Stock Exchange. As name implies, PEL is engaged in manufacturing electronic products as Refrigerator, Microwave, Washing Machines, Energy Meter, Generators and Air conditioners. According to the nature of products, PEL is divided into two divisions Appliances Division Power Division

DEPARTMENTS
There are the following seven departments in Factory of PEL Production Department Research and Development Department Finance Department Quality Assurance & Control Department Human Resource Department Finance Department Marketing Department. Distribution and Credit Department Customers Care Department

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LAYOUT AND LOCATION

Pak Electronic Limited is located in Lahore city at Farooz Road , Lahore.
Power division 1. Manufacturing and quality control 2. Design and development 3. Marketing Appliance division 1. Manufacturing and quality control

2. Research and development 3. Marketing

4. Consumer finance

LEVEL OF INNOVATIVENESS
The PEL use four level of innovation The first level emphasizes minimal changes to existing products, a low amount of new investment, and very low risk. Examples at this level would be changing the color of a product or putting a new logo design on a label. The second level is a higher level of changes. Level Two changes include integrating new features into existing products on the market or creating differentiated versions of the same new product to sell to various demographic groups. The third level is the beginning of large financial and product risk, but it is also where the rewards are potentially larger.

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PRODUCT PORTFOLIO
PEL divides its portfolio in two divisions: Appliances division. Power division.

Appliances Division Air Conditioner Refrigerator Television Microwave Oven Washing machine Generator

Power Division Transformer Energy Meter Switch Gear

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EMPLOYEES AND SKILLS

There are total 10,000 employees working in PEL
Employee Name Syed Manzar Hassan M.khuram Designation Chief Financial Officer Marketing Manager Department Finance Marketing skills Analyzed and investment Decisions Excellent leadership, communications and management skills

M. Omar Farooq M. Naseem Saigol M.Haroon Ahmad Khan

Irfan Shabbir

Company Secretary Chairman/Chief Executive Officer Managing Director Senior Execuitve Employees Relations HRM
Team Lead-HR Operations

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SWOT ANALYSIS
The Strengths, Weakness, Opportunities & Threats of PEL Company are listed below:

Strengths:
The following Strengths of PEL are: Brand Name: with low prices and high quality based products, PEL has created strong brand image in the mind of customers. Quality Products: PEL is serving its customers with its quality bases products, which is strong edge of PEL over its competitors. Strong Distribution Network: PEL has strong Distribution Network to distribute the products all over the markets of Pakistan. Research and Development Department: Having Research and Development Department, PEL try to add new features in its products and want to be innovative in products and processes. Strong Management Team: PEL possesses competent and highly skilled employee as compared to competitors.

Weakness:
PEL has the following some weakness: Financial Problems: PEL is facing financial problems because its stock is not sold and cash flows problems occur. Lack of Advertisement: Another weakness of PEL is that, it is not vigorous advertiser. it is so weak in this sector as compared to competitors. Lack of Range of Products: As compared to PELs Competitor Dawlance PEL has low range of consumer products and need to develop more consumers products.

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Opportunities:
The following opportunities of PEL are: Increase in Product Range: PEL can increase its products range which would be more profitable. Export Opportunity: Due to quality based products, PEL can export its products to foreign markets. Exploration of Markets: PEL has an opportunity to explore its products all over the Pakistan.

Threats:
PEL has the following threats: Strong Competition: Being an era of competition, every company selling their products with different marketing strategies which reduces the chances of profit. China Products: China products are cheaper than Pakistani companies that create serious threats for PEL and assist PEL to keep price & quality low that will be not profitable. Energy Crisis: Pakistan is facing energy crises. Due to increasing the prices of fuel, diesel, PEL can face high cost to manufacture the products. Instability of Government: Instability of Government is another threat. Because there is a fear of new Governments policies and regulations in industry. Slow growth rate: Due to Slow growth rate of home appliances in Pakistan, that will increase the stocks of company.

PEST ANALYSIS
PEST Analysis of PEL is explained below:

Political Environment:
The political situations and conditions of Pakistan is uncertain and unstable. But from few years, we have seen some consistency in Governments Policies which have encourage the foreign investors.

Pak Electronic Ltd. Change your life

There are a few incentives from the Government of Pakistan for manufacturers. The cost of manufacturing products is very high because of increasing prices of oil, gas and fuel Demand of split air conditioners increased due to Government replaced window based air conditioners with split units. There is no check on importers by Government. So importers can import the home appliances and sell in Pakistan by using own label .There is no quality check and brand authenticity. The example is FAST home appliances

Economic Environment:
Because of t he great boom in construction sector and more hoses and institutional building are being constructed, there will be great demand of home appliances and split units. The per capita income of has reached up to $763 which will increase the opportunities for the PEL. Cost of Production and imported raw material are very high. Due to increased demand for split air conditioners, more of the workers may loose their jobs employed by three window air conditioners manufacturers of the country.

Social Environment:
Now a days, people are becoming more prices conscious because of inflation and economic crises in Pakistan. Their primarily focus on food and daily use goods. In Pakistan, use of air conditioners is high but it is limited to middle and upper class. Now people prefer split AC as compared to Window type AC because Split AC are energy savers and electricity bill become low .

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Technical Environment:
With the introduction of split units, this new technology has made air conditioners more affordable and easy to install and use. The reason for being less efficient is that window type air conditioners have cooling and heating discharging unit at the same place so sometimes hot air tends to cause the cool air loose its potential to work properly. Split on other hand has two separate parts and the cooling unit in no contact with the heat discharging unit which tends to improve the efficiency of split unit. Due to innovations and new technology now there is need to make a small hole everywhere you want to install a split as compared to window type air conditioners which needs a huge hole and proper place to be installed. Due to more innovative technology, window type air conditioners use more electricity as a time of being switch on as compared to split units. New and innovative technology is cheaper as compared to existing technology and new technology leads the company toward success. The example is the replacement of window type air conditioners with split units.

MARKET STRATEGIES AND TECHNIQUES

Market Strategies and techniques taken by Pak Electronic Ltd. are divvied into there categories. Promotional Strategies Price Strategies. Competitive Strategies

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PROMOTIONAL STRATEGIES OF PEL

PUSH STRATEGY: . In past PEL used this strategy to increase their sales volume by giving more and more incentive to the dealers. PULL STRATEGY: Now days, PEL is using PULL strategy by improving product quality For example: PEL is using the imported DANFOSS compressors in its appliances. Pak Electronic Limited uses various methods to promote their products like:

Methods of Promotions
Advertising Sales Promotion Public Relations Personal Selling Advertising: PEL is using different type of advertising media like television, stickers, newspapers, clocks, calendar, banners, and wall. Sales Promotion Sales promotions sponsor-founded, demand-stimulation activity designed to supplement advertising and facilitate personal selling. PEL uses out door activities. Exhibitions Road shows Promotion schemes etc

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Public Relations PEL is also engaged in public relations activities just to create a soft image in the hearts of people.

PRICE STRATEGIES OF PEL

Price is a strong element in the marketing mix. It has a direct impact on the customer, business. PEL Company set price of its product lines on the basis of competition in the market. PEL set price of its products lines on the basis of quality. By recognizing the buying power of people of Pakistan, PEL set prices of its products on basis of income level of its customers.

COMPETITIVE STRATEGIES OF PEL

The Compatitive strategy of PEL is that it has wide range of products and at relative lower prices. PEL focus on cost leadership strategy in its power division appliances. In order to be competitive, PEL import high quality raw material form different foreign countries.

COMPETENCIES / COMPATITIVE ADVANTAGE

Pak electronic Limited is the poineer manufacture of electronic goods in pakistan. PEl was 16th company in pakistan which got ISO 9002 Certification,ever since and top management is Committed to make PEL a total quality management.TQM. Huge Network of Distribution all over the pakistan

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RECOMMENDATIONS
The top competitor of PEL company is Dawlance that is market leader. PEL is also Market leader but come ofter Dawlance. Dawlance has wide range of products lines as compared to PEL. PEL must enhance its products lines and then PEL can lead to Dawlance by getting high market share. PEL spends only 3% of Sales on Research and Development activites . PEL miust spends 10 to 12% of sales on Research and Development to develop new innovative and cheaper technology because new technology knowledge come from R & D Departmetnt. Upon doing this , PEL can improve more its compatitive advantage over Dawlance and attain high market share by cost Minimization. Since PEL Company has good image , strong distribution of network and quality products so PEL should use frontal attack strategy to compete its competitor Dawlance. PEL must to encirclement business strategy for purpose of adding new innovative features in its products . In order to increase market share, PEL must put their products in that places where PEL is not offering its products. PEL should performance. he Company should have strong and reliable marketing information system to make proper forecast about market situations. From organizational perspecitve, PEL should focus on decentralization Organization structure and involve the employees in decision making which will boost the employee loyaltiy and company performance. give incentives to its employees to improve the employees