FINAL PROJECT

REPORT ON BUSINESS POLICIES OF AN

ORGANIZATION

Recruitment, retirement, performance appraisal,

training and marketing policies of Fauji Cereals

Table of Contents
FAUJI CEREALS............................................................................................................ 4
Vision of Fauji cereals:............................................................................................. 4

SUBMITTED TO:
MADAM ALEENA MUKARRAM
SUBMITTED BY:

SHUMAIL SHAUQUE (2013-BBA-038)

MAHIN ABID (2013-BBA-022)
ULFAT YASMIN (2013-BBA-043)
KHADIJA NAFEES (2013-BBA-016)
HIJAB GHAFOOR (2013-BBA-009)
AQSA SEHER (2013-BBA-004)

SEMESTER: BBA-7TH
SUBJECT: BUSINESS POLICY
DATE OF SUBMISSION: 15TH DECEMBER, 2016

Mission of Fauji cereals:........................................................................................... 4

Introduction:............................................................................................................ 4
RECRUITMENT POLICY................................................................................................ 7
Literature Review:................................................................................................... 7
Summary of first Article:...................................................................................... 7
Summary of second article:.................................................................................7
Fauji Cereals Recruitment:....................................................................................... 8
Findings and Analysis:............................................................................................. 8
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Discussion:.............................................................................................................. 9
Corporate Strategy and Recruitment Policy Alignment:.......................................9
Fauji Cereals Recruitment Policies and Organizational performance:.................10
Recommendations:................................................................................................ 10
RETIREMENT POLICY................................................................................................. 12
Literature Review.................................................................................................. 12
Summary of first Article:.................................................................................... 12
Summary of second Article:...............................................................................12
Analysis:................................................................................................................ 13
Retirement Policy of Fauji Cereals:.....................................................................13
Procedures of Retirement at Fauji Cereals:.........................................................13
Findings:................................................................................................................ 14
Discussion:............................................................................................................ 14
Recommendations:................................................................................................ 14
TRANING AND DEVELOPMENT..................................................................................17
Literature Review.................................................................................................. 17
Summary of first Article:.................................................................................... 17
Summary of Second Article:............................................................................... 17
Findings and Analysis:........................................................................................... 18
Discussions:........................................................................................................... 18
Recommendations:................................................................................................ 19
PERFORMANCE AND APPRAISAL POLICY...................................................................21
Literature Review.................................................................................................. 21
Summary of first article:..................................................................................... 21
Summary of second Article:...............................................................................21
Findings and Analysis:........................................................................................... 22
Recommendations:................................................................................................ 22
Marketing Policy....................................................................................................... 26
Literature review................................................................................................... 26
Summary of Article:........................................................................................... 26
Summary of second Article:...............................................................................28
Summary of third article:................................................................................... 27
Summary of fourth article:................................................................................. 27
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Findings and analysis:........................................................................................... 29

Discussion:............................................................................................................ 30
Recommendations:................................................................................................ 30
CONCLUSION:........................................................................................................... 31
References:............................................................................................................... 32
Appendix:................................................................................................................. 34

INTRODUCTION

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Page | 4

FAUJI CEREALS:
Fauji Cereals was established in 1954, a fully owned Project of Fauji Foundation and started trial
production initially in collaboration with Quaker Oats England in 1956. It is the pioneer
commercial venture of Fauji Foundation. It is the major producer of breakfast cereals in Pakistan
with wide range of products. It is Pakistans most prestigious and biggest cereal processing unit,
having the latest modernized machinery, highly hygienic environments for production of Halal
Food Products. The Company enjoys over 80% of the market share in the category of Breakfast
Cereals and Porridge Food Products.

Vision of Fauji cereals:

As a role model welfare-cum-industrial organization, maintain sustained operational
excellence in health care, education and industry.

Mission of Fauji cereals:

Provide and facilitate quality education and health care to the Beneficiaries and Invest in
ventures ensuring earning growth compatible to the demands of welfare.

Introduction:
We choose the Fauji Cereal Company for the completion of our project of Business Policy.
First we all visited the whole organization and came to know about the History and background
of the company. And then we saw all the warehouses and production areas of the Fauji Cereals
Company. Our main focus is to ask questions about them regarding their business policies, which
they made and implement in their organization for effective and efficient performance.
This project covers the importance of the business policies of the Fauji Cereals Organization.
The business policies or strategies contain a number of key principles that outlines how a
company will go about attaining these goals. For example it will explain, how to deal with its
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competitors, look at the needs and expectations of customers, and will examine
the long term growth and sustainability of the organization. The reason why having a strategy is
so important is because it gives business time to get a sense of how they are preforming, what
their capabilities are, and if these capabilities are able to help them grow.
As Fauji cereals are committed to supply the best morning cereals around the Pakistan so it
makes its policies accordingly. The main policies for which we have discussed in our projects
included the recruitment policies, retirement policies, performance compensation and rewards/
benefits, marketing policies and training and development polices and strategies. The recruitment
policies and retirement policies are decided by the Fauji Foundation which is the head of these
organizations. While marketing and training policies and strategies are decided by the
organization itself, as they changes very frequently.
According to the brand manager of the Fauji Cereals, a well-defined business strategy will offer
us a guide on how our business is performing internally. Also, how we are performing against
our competition and what we need to stay relevant into the future. A strategy can identify trends
and opportunities in the future. It can examine the broader changes in market such as political,
social or technological changes, as well as consumer changes, and can develop tactics so our
business can modify and develop to suit these future changes. A business strategy creates a vision
and direction for the whole organization. It is important that all people within a company have
clear goals and are following the direction, or mission of the organization. A strategy can provide
this vision and prevent individuals from losing sight of their companys aims. Finally, by creating
a business strategy a company can create a competitive advantage and ultimately understand
more about themselves and where they are going.

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RECRUITMENT POLICY

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RECRUITMENT POLICY:
Literature Review:
Summary of first Article:
A study of HRM and recruitment and selection policies and practices in Taiwan
The article discusses the HRM and recruitment and selection practices in Taiwan`s
manufacturing Industry. It suggests that HRM policies are integrated with corporate strategy and
that HRM should be involved in decision making at board level. The majority of HR managers
felt it was important that there was an HR specialist on the board participating in the
development of corporate strategy and that HR policy and corporate strategy were fully
integrated. (Yu-Ru Hsu, 2012; Mike Leat, 2012). The paper also discusses that line management
is held participative in HRM decisions but mostly in recruitment and training and not in the
decisions related to pay and benefits, health and safety, and industrial relations. The realistic job
preview (RJP) can better allow applicants to select whether a particular job is suited to their
needs and enables the expectations of applicants to become more realistic. (Yu-Ru Hsu, 2012;
Mike Leat, 2012)
According to Lengnick-Hall and Lengnick-Hall (1988), the integration of HRM with business
strategy has four advantages: (1) it provides a broader range of solutions for solving complex
organizational problems; (2) it ensures that human, financial and technological resources are
given consideration in setting goals and assessing implementation capabilities; (3) organizations
explicitly consider the individuals who comprise them and who implement policies; and (4) it
ensures that human resource considerations contribute to, rather than are subordinate to, strategic
decisions.
Summary of second article:
The impact of recruitment and selection criteria on Organizational performance

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The article says that people are vital to organizations as they offer perspectives,
values and attributes to organizational life; and when managed effectively, these human traits can
be of considerable benefits to the organization. Akin to this development is the contention in
National University of Ireland (2006) that the continued growth of the enterprise depends on its
ability to recruit and select high quality personnel at all levels. Most recruitment and selection
processes have elements of subjective judgment inherent in them. But treating job applicants in a
professional and positive manner is more likely to leave them, whether they are successful or
not, with a positive view of the organization and how it has dealt with the applicants (National
University of Ireland, 2006). Human Capital theory as proposed Adam Smith (1723-1790) in
Teixeira (2002) has the central idea that people are fixed capitals just like machine because they
have skills and useful abilities that has genuine cost and yields profits.
The research population covered the six (6) main business divisions of Fidelity Bank Plc in
Lagos State. The respondents covered top, middle and lower positions workers in marketing and
operation sections of the bank. The findings of this study is in tandem with existing information
in the literature that recruitment and selection criteria have significant effect on organizations
performance. Given that organizational environment is ever changing, the banks management is
implored to constantly evaluate the banks selection methods on the basis of their validity,
impartiality, scope of usage, and cost. (Joy O. Ekwoaba, 2015; Ugochukwu .U. Ikeije, 2015;
Ndubuisi Ufoma, 2015).

Fauji Cereals Recruitment:

Strict adherence to the specific job requirements are kept in mind and Welfare & Rehabilitation
Directorate (GHQ) is duly involved in the process through nomination based on criteria defined
in the Armys Selection procedure.
Other than ex-servicemen, Fauji Foundation and its associated companies, enroll qualified
professionals required through advertisement in the newspapers. The transparency of the
selection criteria helps in achieving excellence in their commercial and industrial ventures.

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Findings and Analysis:

The policies mentioned below are subject to change through revised orders issued from time to
time.

As a common practice, while hiring junior level staff / apprentices at plants minor
relaxation is given to the local population to encourage the locals. A third party recruiter

is also used i.e. Man Private Ltd.

Likewise, in the marketing group, preference to post locals is also given due
consideration to resolve communication issues/ language problems. No senior
management employee at locations of significant operation is hired on the basis of

location or domicile.
For managerial positions Ex-Army Persons are hired with a contract of 3 years and then
they get retired. The newly hired employee has the probation period of 6 months after

that either one is employed as a permanent or on contract base employee.

Fauji has not introduced any specific quotas for women, specific nationalities, ethnic
minorities or special age groups for the Board of Directors and Executive Committee. All
candidates are evaluated and selected on the basis of the same list of criteria.

Discussion:
Corporate Strategy and Recruitment Policy Alignment:
Fauji Foundation (also known as Fauji Group), is amongst the largest business conglomerate in
Pakistan which "Earns to Serve" the interests of ex-servicemen. It`s basic strategy is the welfare
of ex-service men and their families. So, the recruitment process highly conglomerates with the
business` main strategy as it has a major quota of ex-service men to be hired in its projects.
As highlighted earlier in the article, A study of HRM and recruitment and selection policies and
practices in Taiwan, it is mentioned that the corporate strategy and HR policies must be fully
integrated. From the observations it is clear that Fauji Cereals is going the right way. Because of
following reasons:

By hiring retired service persons it is getting a large supply of experience

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For the requirement fulfillment of up to date processes and their

knowledge it is also hiring young people who are skilled and qualified employees.

By both of these ways the company is Earning and Serving in the best way. Just in
accordance with the corporate strategy of the business.
Fauji Cereals Recruitment Policies and Organizational performance:
Fauji cereals recruitment policies as aligned with the organization`s strategies are helping the
whole Fauji group to achieve excellence and appreciative organizational performance. The
induction of Ex-service persons brings the traits of Discipline and Perfection into the operations
of the business. The experience of these employees makes harder operations easy to continue for
an appropriate period of time.
The fresh talent brings enthusiasm and passion with it to improve organizational performance. So
the recruitment policies of Fauji Cereals bring with it these traits which have positive impact on
the performance of Fauji Cereals individually and to the Fauji Group as a whole as well.

Recommendation:
Currently Fauji Cereals is not incorporating the quotas for women, minorities and ethnic groups.
Such Glass ceiling Effect should be reduced within the organization. So it creates the feeling of
discrimination among the employees. These are important elements for showing good image of
the company and gaining competitive advantage. Thus, it is highly recommended to incorporate
these policies into the corporate strategy of the business.

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RETIREMENT POLICY

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RETIREMENT POLICY:
Literature Review:
Summary of first Article:
The changing landscape of retirement rules of thumb
The prospect of the article is to measure the continued constancy to existing
rules of thumb for the percentage of pre-retirement income which should be
available to retirees. One should have knowledge about level of income
he/she needed in retirement because they develop their financial plans and
depend on a variety of assumptions including elimination and/or reduction in
tax payments and debt levels. There is no standard level because each
individuals

financial

situation

is

unique

and

going-forward

financial

conditions are unknown. General suggestions are made to encourage

younger workers to save at least 10 per cent of their take-home pay and
maturing workers should move up their saving scale to 30-40 per cent during
their ending working years. The reason of this planning suggestion is to
position the individual to have sufficient retirement income that is saved over
their lifetime. The most important consideration is that very little variation
has occurred in retirement income rules of thumb in the past two decades.
Findings of Palmer (2002) indicate a decline in preretirement savings rates
which has alarming implications into the levels of savings that individuals will
have for using during their retirement years. Underlying question in this
article is concerned with whether wage replacement ratios need to be
updated to reflect the current spending or debt patterns. If individuals are
moving into retirement with high debt levels, they may not have sufficient
income to provide them with a quality of life they have become habituated to
or may not have enough savings to last for the duration of their lives. Our
suggestion for these individuals would be to allow as much time as possible
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in pre-retirement planning to reduce their continuing mortgage

exposure through negotiating a lower interest rate and/or downsizing to a
smaller home and mortgage.
Summary of second Article:
Choosing to retire: how companies can support and respect the
decision better
Companies in any part of the world can make retirement more meaningful by
actions that let employees examine and step into a range of opportunities.
Also, they can show that those opportunities should command respect. If the
chance to shift into a second career, or entrepreneurship, or consulting, or
volunteer roles are offered to employees of all ages, they can move the
image and can change the reality of retirement from pasture to pleasure. No
strategic plan should be prevented by a mismatch of employees on the job
and those needed to implement the plan, and ideally no employee should
stay on the job simply to avoid the embarrassment of admitting the
retirement. Even organizations whose focus is keeping most employees in
their workforce rather than encouraging retirement, such as those in Europe,
may benefit from a more prevalent perception that when retirement does
seem wise, it can also seem desirable. A second career offers another way
for a retiree to acquire a socially acceptable title, and employers can
increase the likelihood of their employees gaining such post-retirement roles.
Schalk and van Veldhoven (2010) set forth what they refer to as a research
agenda examining such possibilities as additional holidays for older
employees and opportunities for them to work shorter hours or more flexible
hours, although the companys goal is to keep workers employed longer.

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Analysis:
Retirement Policy of Fauji Cereals:
Retirement in Pakistan means to retire from service, to go on retirement or
relieve from service after completing 60 years of age. Following are some
questions asked in interview about retirement policy of Fauji Cereals:
Procedures of Retirement at Fauji Cereals:
In Fauji Cereals first of all a person which is going to be retired have to apply
to his appointing authority to issue retirement notification. Ordinary one year
before the date of retirement. At least three months ago. The documents
needed to apply for retirement notification includes; photo copy of service
statement of first four pages of service book, matriculation certificate,
national identity card etc. Usually at least three months before the date of
retirement a person has to apply for issuance of retirement notification.
Services Provided After Retirement:
Retirement benefits are different for officers, clerical staff and field staff. Paid
leave during the job is accumulated and added in retirement income,
gratuity is paid. After retirement Fauji Foundation provide services for exservice-men like compensation in hospital services to the family and retiree
himself. As it is a semi-government organization so no pension benefits are
provided.
Head-office Fauji foundation deals with the policy formulation, modification
and fair implementation.

Findings:

There is discrimination in providing after retirement facilities between

upper and lower management staff.

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As no friendly services are provided after retirement i.e.

no pension so, every employee try to complete his working age
(service requirement). They merely think about getting retired before
the time.

Discussion:
According to the article organizations should provide sufficient amount to the
individuals before retirement. In Fauji Cereals this method is applied and all
the other funds offered by the company during work are accumulated in the
end if they are not being acquired. They provide a fair amount of income
before retirement. According to our second article organizations try to retain
their employees so that they dont get retired before service requirement
time. They provide additional holidays for older employees and opportunities
for them to work shorter hours as companys goal is to keep workers
employed longer. Other than that they also provide second career option to
the retired individuals i.e. can work as a part of board of directors. But in
Fauji Cereals there is no such case; they can adopt this procedure of hiring
their retired employees for policy making purposes or in board of directors
etc.

Recommendations:

Retirement incentive programs are clearly an important tool for

increasing turnover; they should be reconsidered.

Health benefits should be equal for all levels of employees as there is
no procedure of pension so, all retired individuals should get benefit
from it.

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TRAINING AND
DEVELOPMENT POLICY

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TRANING AND DEVELOPMENT POLICY:

Literature Review
Summary of first Article:
Degree of Influence of Training and Development on Employees Behavior
Training and development builds a team of highly effective and efficient employees. It prepares
and enhances employees knowledge and skills to enable them so that they adapt new
technology, the changes that are happened inside the organization and the working environment.
Training and development enhances job satisfaction and productivity for organizations because
the employees know what is expected of them as they are also equipped with the knowledge and
tools to perform their jobs efficiently. Errors are reduced and efficiency is increased with training
and development because employees are already well-equipped with the ways of the work.
A good training and development system ensure your employees to understand the business and
its condition and keeps updated on the skills they need to possess to perform their day to day job
so it brings in confidence and improves performance. In addition, employees who receive regular
training are more likely to accept change and come up with new ideas
Summary of Second Article:
Do trainer style and learner orientation predict training outcomes?
The way trainer outlines goals and provides feedback matters. Such directedness has significant
relationships with both training transfer and satisfaction. The reason behind this relationship is
trainees high learning goals enable them to face the challenges associated with acquiring new
knowledge which in result display more favorable reactions when aligned with an instructors
directive style. So trainer characteristics basically influence the learning experience.
Organizations must know the trainees interest toward training while selecting the training
participants. Furthermore organizations can prepare trainers to apply different instructional styles

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to adapt to learner needs and contexts. Consequently to make the training

session fruitful organizations have to be mindful of both trainees needs and trainers styles.

Findings and Analysis:

Fauji Cereals identified the need of training as they are going to introduce Italian Pasta very
soon. Its a new product so they are training their employees to aware them about the skills
needed to produce such product, to perform efficiently by reducing errors, which would
ultimately increase their job performance.
Besides identifying the employees training needs Fauji Cereals also focus on the trainers role in
training. Literature illustrates that the way trainer outlines goals and provides feedback has an
impact on training transfer and training satisfaction. So that is why they hire trainers from Italy.
Italians are here to give training on Italian Pasta. Hiring of Italians trainers would definitely
fulfill training goals and employees would be fully satisfied.
Fauji cereals also informed that they give training when new equipment and machinery is used,
new technology and new plant is introduced. Onsite training is provided by company owner.
They train employees department wise. They train employees for 6 months after that prohibition
period starts and training is evaluated. If goals are not met then they retrain employees for next 6
months.

Discussions:
As the literature shows that training brings different changes in employees behavior such as it
enables them to cope up with change in organization, which can be change in technology, change
in policies, change in working environment, or change in organizational culture as whole. This
change in employees behavior increase their confidence in their work as it let them know the
skills they need to possess to perform their day to day job and reduce errors which in return
increase productivity and efficiency. Therefore Fauji Cereals identified the need of training as
they are going to introduce Italian Pasta very soon. Its a new product so they are training their
employees to aware them about the skills needed to produce such product, to perform efficiently
by reducing errors, which would ultimately increase their job performance.

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Besides identifying the employees training needs Fauji Cereals also focus on
the trainers role in training. Literature illustrates that the way trainer outlines goals and provides
feedback has an impact on training transfer and training satisfaction. So that is why they hire
trainers from Italy. Italians are here to give training on Italian Pasta. Hiring of Italians trainers
would definitely fulfill training goals and employees would be fully satisfied.

Recommendations:

There should be proper training policy and competent professional in organization.

Top level management should provide support to these kinds of training programs.

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PERFORMANCE AND
APPRAISAL POLICY

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PERFORMANCE AND APPRAISAL POLICY

Literature Review:
Summary of first article:
Effective reward ensures effective engagement
Gemserv has developed a portfolio of services for the energy, water, environment, telecoms,
information security and smart sectors. With markets and industries becoming increasingly
complex and the step of change accelerating, the companys practical approach backed by over a
decade of experience is valued by clients in the UK and worldwide. Employee engagement is the
key to success in this era of versatility and competitiveness and this is only possible when
company is able to keep its employees satisfied by providing them a unique package of
performance appraisals and rewards. High-technology organizations are often referring to as
models for their rewards and recognition efforts to attract talent such as R&D engineers. Other
benefits drive from rewards is reduced turnover, more innovation and higher productivity. Here,
the author argues that managers should not look for simple and permanent solutions with respect
to rewards and motivation. Managers should be willing to think and act creatively to meet the
challenges associated with increasing demographic and cultural diversity in the workforce
because of globalization. The employees are aware with new reward system that is Be
imaginative go beyond pay in Gemserv and this system help company to maximize the
employee engagement.
The Employee Deal reward system in Gemserv represented three key elements of the reward
structure. First, the prot share and bonus system the objective is to encourage and reward high
performance and strengthen the environment that all employees are under similar circumstances.
Second, a personalized range of benets were designed to meet the lifestyle choices of
employees. Third, career development programs focus on supporting and developing employees
through structure career progression programmers.

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Summary of second Article:

Rewards for continuous training: a learning organization perspective
The organization under study in this article has strong learning culture. The advancement of a
learning environment encourages workplace learning. The rewards monetary, non-monetary or
psychological are tools to moderate the behavior of staffs at workplace. The position of
employees is independent to training rewards. Different types of rewards discussed that include
overtime, job security, salary increase, training working and time flexibility rewards and the
connection of these rewards with different job categories and job functions. It has found that the
most common reward types are related to workplace organization and that monetary rewards are
less frequent. These results propose that training is understood as a job activity that is to be
performed during the work time, but that the low level of monetary rewards might discourage
employees towards further training programs. Basically there are three types of rewards that a
company could offer to its employees i.e. financial, non-monetary and psychological but it is
very difficult to separate them on the basis of learning environment. In order to maximize the
learning opportunities, one of these circumstances offer rewards that motivate employees
towards growth opportunity and in this way the organization is able to make learning culture.

Findings and Analysis:

There is annual appraisal system in FAUJI cereals in which bonuses i.e. monetary rewards given
to all employees.
Bonus programs have been used in FAUJI cereals for some time. They usually reward individual
accomplishment on annual basis.
If targeted sales are achieved, then incentives are given to the employees in marketing
department. Target sales rewards in sales organizations are beneficial to encourage
salespersons to generate additional business or higher profits.
Medication facility for officers only in FAUJI foundation hospital and for clerical staff there is a
dispensary inside the company. Other than this separate system of medication related to severe
deceases like Cancer, Hepatitis and AIDS etc.
No pension benefit.

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Discussion:

Rewards

Motivation

Performan
ce

Success

Rewards are either monetary or non-monetary motivates employees. Employees motivation

directly affects their performance. The higher the employee performance, the more likely are
chances of organizational success. Management should know about employee perceptions,
aspirations and requirements covering a wide range of areas, including salary positioning, career
progression and intangible value of employee benets. Managers should think that how is it
possible to be more transparent around the process, the decision-making and is truly honest on
pay and benets positioning and how that can be effectively aligned with business policies and
objectives.
Herzbergs two-factor theory (Herzberg 1968) states that money does not motivate employees
but only satisfies them. Employees are dissatisfied if they get low wages but still may have a
high motivation to work if the intrinsic rewards such as sense of responsibility or achievement
are high. In contrast, employees are satisfied if salaries are high but may be still not motivated to
work if the intrinsic rewards are absent. As in case of FAUJI cereals they only give yearly
bonuses as a specific percentage of their salary and in terms of non-monetary rewards the
employee of the month award is given but to encourage talent and provide role satisfaction,
FAUJI cereals should need to develop employee career development objectives and programs.

Recommendations:

Communication between team leaders and their team members need to be improved. This
will ensure that individuals understand how they are assessed and feel that the process is

fair and objective.

Bonuses are generally short-term motivators so, different types of non-monetary rewards
which have the most impact on staff morale should also be provided.
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The current method of giving bonuses should be reviewed beside with

annual bonuses, good performance should also be rewarded additionally, to ensure that
everyone is motivated and challenged. A satisfied employee is well motivated towards
work and would contribute greatly towards working to achieve the overall goals of the

organization.
Performance Development should be made a continuous process and not only mentioned

when it is time for annual reviews or appraisals.

Methods of helping poor performers to improve upon their performance, such as
counseling, and change of role as well as transfers should be put in place or strengthened,

if in existence already.
There is the need to develop a good feedback system to ensure that appraisals are not
completely separated from the actual performance management process. Only this can
ensure that weak performers get the chance to develop and catch up with the rest of the

team.
Managers should be made to know and checked to ensure that they do not use sentiments

and their own ratings to judge their subordinates during performance reviews.
Along with in house training programs FAUJI cereals should provide extensive offsite
development programs for staff to complete qualified courses and professional training in
different areas especially in marketing.

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MARKETING POLICY

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MARKETING POLICY
Literature review
Summary of First Article:
Placement and promotion strategies to increase sales of healthier products in supermarkets
in low-income, ethnically diverse neighborhoods: a randomized controlled trial
This article discusses the impact of promotional strategies of healthier food in supermarket
stores. The study evaluates the impact of placement of different products in the store shelves on
the sales of these products. The study mainly includes milk products, ready to eat cereals, frozen
meal and beverages. The study was designed in 8 stores. 4 stores were subjected to interventions
and four were kept in control conditions. The intervention consisted of major marketing
strategies used across all categories, with placement as the dominant strategy and promotion as
the secondary strategy. Strategies included multiple facings i.e. Increase the number of facings
of the recommended products, prime placement i.e. placed recommended products at arm/eye
level. The overall approach was to simply increase the visibility of, and access to, healthier
options through increased number and optimal placement of the recommended products and
taste-testing. Control stores were received no interventions. These were 4 supermarket stores
and were kept under observation only.
The major findings of this study includes the impact of placement and availability strategies, the
stacking position of the products either vertical or horizontal position. It was found that only
making the product available at first sight and keep it in the eye of a customer can significantly
increase the sales. The second finding was that by placing the products in vertical position has
increased its sales. The reason behind this is that in this position the product becomes more
visible to the customers. The study also found that the sales of some products remain unchanged
throughout the process. One product of this study was ready to eat cereals. The reason behind
this was unclear but it was suggested that this may be happened due to the reason that those
people who use cereals as important part of their diet continue to use it in the same manner no
matter where or in what position it is placed.
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Summary of second article:

TV food advertising aimed at children: qualitative study of Pakistani fathers views
This article signifies the buying behavior of children towards food items that are depicted in the
advertisements. Television effects the attitudes and behavior of all persons, especially the
children. It has been noticed that children get influenced by the attractiveness of the
commercials. It was discussed in the article that fun and joyous themes depicted in TV ads attract
children. It has seen that those companies which produce unhealthy, low quality and cheap food
products tends to influence the childrens mind by excessive bombardment of the attractive
commercials. These advertisements not only change the mindset of the young children but also
change their attitude from quiet to aggressive by demanding those products from their parents.
These commercials tend to change the eating habits of the children as well as leading them to
serious health issues like obesity, high blood pressure and increased cholesterol level even in the
younger age. While on the other hand is has seen that those companies which produce healthy
products advertise less so children buying intension towards those products is very low. So
children are less attracted to those healthy products. Mostly children refused to believe several
times that another less advertised product can be better than the product being heavily advertised.
According to the article TV advertising is a great source of information and education for the
children and plays an important role in child education. It was discussed that positive impact of
TV food commercials in enhancing the knowledge of their children with regards to available
products. In this era of information, TV commercials are a great source of information and are
pivotal for their intellectual growth. So advertising is very important for the promotion of the
products and product line of an organization to influence the targeted customers and change their
buying behavior.
Summary of third article:
Importance of Marketing
The heart of your business success lies in its marketing. The overall marketing umbrella covers
advertising, public relations, promotions and sales. Marketing is a process by which a product or
service is introduced and promoted to potential customers. Without marketing, the business may
offer the best products or services in industry, but none of potential customers would know about
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it. Marketing is essential for communication of information to the prospective

customers. Customers get to know about the product and different products lines. When
customers are well aware of the products then they intent to buy those products which satisfy
their wants and needs. This results in the increase of the sales and revenues which is a productive
sign for the organization. Marketing builds brand name recognition or product recall with a
company. When a company reaches the high expectations of the public, its reputation stands on
firmer ground. As reputation grows, the business expands and sales increase. Marketing also
fosters an environment in the marketplace for healthy completion. Marketing efforts to get the
word out on pricing of products and services, this not only reaches the intended consumers, but
also reaches other companies competing for the consumers business. As opposed to companies
that have a monopoly on products and services that can charge almost any price, marketing helps
keep pricing competitive for a business to try to win over consumers before its competition does.
Without competition, well-known companies would continue to sell while lesser known
companies or new companies would stand little chance of ever becoming successful. A
marketing program that gives company the best chance is a healthy mix of different forms of
marketing, such as website development, public relations, print and broadcast advertising, design
and printing for all print materials, trade shows and other special events.
Summary of fourth Article:
Big Food corporations and the nutritional marketing and regulation of processed foods
This article is about the production and marketing strategies of highly processed foods called big
food corporation including ready to eat cereals, sweetened milk and yoghurt and snack foods.
The market consumption of processed food is increasing day by day but along this the awareness
of consumers about the disadvantages of ready to eat items also increases. The government,
nutrition and health experts and the public is taking action against over consumption of highly
processed foods and beverages. These actions in turn posed a number of challenges and threats to
these corporations one of main challenges is the prospect of direct government regulation that
would restrict the types of foods and beverages that corporations produce, or how they market
and sell their products. Another potential threat to Big Food corporations is the prospect of legal
action arising from health problems related to the consumption of processed foods. There is also
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the potential for a decline in sales or a reduced rate of growth in some markets
as health conscious consumers grow wary of highly processed foods and switch to more
healthful food options.
In response to these challenges, Big Food corporations have employed both negative and positive
strategies. One type of response has been to deny any special responsibility for these health
problems, as well as to actively weaken the introduction of mandatory government regulations.
The second type of response is positive to these health concerns by presenting themselves as part
of the solution to these dietary health problems. This includes producing healthier food
products, smaller portion sizes, new labeling initiatives, and nutrition education campaigns.
These initiatives form a part of the Corporate Social Responsibility (CSR) agendas of these
companies.

Findings and analysis:

Fauji Cereals continues to lead sales, recording a value share of 72% in 2015 due to its
longstanding presence in the market. Fauji offers a wide range of products in every cereals area
and has an extensive distribution system which allows it to distribute its products in all areas of
urban cities.
Fauji Cereals Company is known to be the market leader in breakfast cereals in Pakistan. Fauji
cereals start its marketing campaigns since 2015 due to the entry of Kelloggs cereals in
Pakistani market. When Kelloggs group got entry into the Pakistani market, the market share of
Fauji cereals start decreasing. Fauji Cereals was relaxed about its market shares in past that is
why they were not involved in any type of aggressive advertisements or any other activity of
marketing. They did marketing but on very small scale or one can say that it was not involved in
marketing at all.
In 2016, Fauji has made a comeback on commercial advertising after a long time with their latest
campaign titled, Khanay ke liye hain jeetay ja rahay! The cereal brand has been the nations
favorite for almost six decades now.

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The latest TVC comes with a catchy jingle and interesting insights on how
everyone has different eating habits and taste buds when it comes to taking cereal breakfast.
Conceptualized by Synergy Advertising, the 50-second commercial highlights Faujis wide
range of cereal products that cater to every age group. Now the company has started to advertise
each product separately. Their new billboard has recently displayed at airport road Rawalpindi.

Discussion:
Fauji cereals are known to be the leader of market in cereals and flakes. Although its
promotional strategies are not good but still they are enjoying highest sales due to their
monopoly and the best distribution strategies. Their distribution channel is very efficient using
170 distributers throughout the country. They are using their own vans for transportation near to
the city e.g. Karachi, Islamabad, Peshawar and other cities and they also used trucks for
Baluchistan or other far areas. They also enter into export business to Afghanistan and
Bangladesh. Despite of no promotional activities they are enjoying high profits and this is all due
to their distribution strategies and their loyal customers.
Pakistan doesnt have any regulatory mechanism regarding the control of amount of ingredients
in the production process or mentioning the ingredients on their packaging. Pakistan has its
policy regarding halal food called The Pakistan Halal Authority Bill 2015.

Recommendations:

Fauji cereals must focus on the advertising strategies that advertisement must be
attractive, informational and must be telling about the products benefits. They should use
other social media like Twitter, Instagram and Facebook to promote its products.

Promotion is very essential to position the products in the minds of the people. Most of us
didnt know about the product line of the Fauji Cereals. So Fauji cereals must make its
customers aware about the different products so customers have knowledge about the
products and can enjoy a healthy diet.

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CONCLUSION:
The overall project discusses the business policies of the Fauji Cereals organization. Fauji
cereals is the project of Fauji Foundation so most of the policies of the organization are decided
and set by the head Fauji foundation. While some minor policies decisions and implementation is
done by the Fauji Cereals itself. Recruitment policies are decided by the Fauji Foundation, as to
ensure effective performance of the organization by hiring highly skilled and well experienced
people. While employees for clerical level and low level are hired by the Fauji Cereal itself. The
recruitment policies have positive impact on the organizational productivity /performance.
Retirement policies and performance appraisals/ benefits are also decided by the Fauji
Foundation and these are not effective as top management dont treat all employees equally. And
this discrimination has negative impact on the performance of employees.
Training and development decisions are made within the organization as no specific department
here for training but training is offered to the employee i.e. on-site training. Training policies also
leads to positive impact on organizational performance. Marketing policies are very important
for the organization, it has seen that marketing polices or strategies are not very strong for
company as these policies are not updated and most of promotional activities are not
implemented in the organization. Competitors although having low market share can take the
competitive advantage by developing strong marketing policies or strategies that can influence
the minds of the people and may lead to increase in the market share of competitors. As Fauji
cereals is not for profit organization so their policy regarding marketing is align with their vision
and mission which states that it is a welfare organization to serve ex-service men but to continue
its existence in the market it should focus on their marketing policies.

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APPENDIX:
Interview Questions:
1. How Fauji foundation comes to know of your requirement of the employee type and
skills required?
2. How you deal with the new employee`s problems or if one is not suitable with the job
and skills requirements?
3. How are you measuring the success of your recruiting process in the short-term and in the
4.
5.
6.
7.
8.
9.

long-term?
When training sessions are held in Fauji cereals?
What training methods do you follow?
What is the significance of trainers role in training?
What are the techniques that are used in your organization for assessing performance?
Do you believe that linking rewards to performance would motivate employees?
In general, how effective has your organizations performance management processes

proved in improving overall performance?

10. Before retirement from which procedures employees have to go from?
11. Which services are provided after retirement?
12. Who formulate retirement policies?
13. Marketing is very essential for a business. Why your company has made no major efforts
for marketing strategies?
14. What next steps are you taking for promotion of your products?

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