INTRODUCTION:

Ayaz family was originally from Jhang and was well known in the business community in textile and
plastic manufacturing industry. Akbar sold his manufacturing industries due to his inability to arrange
interest-free financing, and joined the spare parts business. Akbar Motors became family oriented
business in early the Akbar’s Nephew Zia run the Akbar motors business later on he left Akbar motors
and his own sons became Director in both shops after Zia left business. His both branches catered for
new and used car sales, in addition to spare parts. They were considering opening branches in other
suburbs of Lahore. There was a tendency in Lahore, for markets of certain items to develop within
specific areas. It usually started with a few successful businesses dealing with a certain item and then
others followed by opening stores in the same vicinity.

PROBLEMS IDENTIFICATION:
 Poor structure problems
 Poor decision without any consultation
 New business without any experience
 Instability
 Interest free financing
 Same activities at both of the shops
 Both brother are director of small business
 Unrelated expense
 Selling problems by salesman of Akbar during in sales
 Errors occur during the checking of bin numbers in present system
 Concentration on expanding the business rather than sales
 Improper hierarchy
 Salesman sales part lower then cost price
 Only salesman check bin and commit miner errors
 Salesman made slight errors in judgment of spare parts order
 Salesman less look over some parts not order them at all
 High prize of computer system and inventory software
 Ayaz was computer oriented and he only focus on computer technology
 Gather information on computerization
 Ayaz was a fresh graduate and don’t have enough experience in related business
 3 full time purchase agents

1
 Quantitative Analyses
Year Quantity Value
(In books of kegs) (Rs in millions)
1979-80 5711 274.565
1980-81 4154 308.618
1981-82 16.570 319.212
1982-83 8657 410.211
1983-84 8424 408.663

Due to the growth in the number of automobile in Pakistan, the spare parts market had recorded
vigorous expansion within a couple of decades. According to the federal bureau of statistics the number
of automobile in Pakistan had grown at a rate of 10% per annum during the period 1975-1985. Imports
of spare parts increased from Rs. 275 million in 1979/80 to Rs. 410 million in 1982/^; while falling
slightly to Rs. 409 million in 1983/84.

Outlet-where market’s not of spare-parts 3 full time purchase agents (3km-6km)

100 parts per day.
50% to company.
45%to industry.
5% to credit.

Potential benefit of technology system on sale computer is

1bm - 30000
Software-25000.

To maintain customer confidence, Akbar motors had hired three full-time purchasing agents whose only
duty was to ride their motorbikes to get an out-of-stock part when needed from Montgomery road. In
this manner the ‘carder system’ proved to be useful as a check on the sales people. Any missing part
would readily show at the time of quantity checks.

2
 Qualitative Analyses
The identification of problem was poor they have facing different problems but they were focusing on
inventory system. Akbar took decision alone of selling his manufacturing industry without consulting
with any skillful person. When he start business cars were few in use of general people. His decision of
selling business was poor and quick. He was new at business and don’t have related experience. He was
thinking of opening new branches in suburbs of Lahore but he didn’t focus on the running shops. The
distance between both shops were 10-15mins. Both shops have same nature of business and both
covers the same area of customers. They were facing selling problems; Salesman sometime sells parts
lower than the cost price. Salesman check bin which led him to slight errors in judgment of order.
Sometimes he order more than requirement of stock.

RECOMANDATION & SUGGESTIONS:

 He shouldn’t left his family business
 They should set work differently on both shops
 They should find identification of problem rather than running towards the other resource
 Concentration on selling rather than to expanding the business
 Provide cash memo to every salesman
 Personally visit the markets
 He should take care of his business himself rather than on his nephew
 He should open a branch in Bedami-bagh
 He should analysis in quantitative way but he doesn’t consider thinking in qualitative way
 They should cover more area and shouldn’t keep focus on same area
 Both brothers should give time separately in different branches rather then focus on one branch
 Inventory system was expensive and Toyota has already given much better inventory system
 Make salesman to check bin twice and make his visit to shops every signal day
 Ayaz was computer oriented so, Akbar should not focus on his views
 They haired three purchase agents for same purpose of getting items from market which was
just at drive of 3km – 6km. There spending on purchase agents was useless.