FACULTY OF COMMERCE

Managerial Economics
Master Tiles

Universal Home Appliances

Submitted to:

Prof. Yasir Iqbal

Submitted by:

The Expendables
Muhmmad Awais G1F18MCOM0070
Mian Zahaib Ahmad G1F18MCOM0068
Umer Iqbal G1F18MCOM0046
Adnan Saleh G1F18MCOM0056
Hamza Mughal G1F18MCOM0069
Abdul Wasy G1F18MCOM0058

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 ACKNOWLEDGMENT
First of all we are deeply grateful to “Allah Almighty”. Then we would like to express our
gratitude and appreciation to all those who gave us the possibility to complete this report. A
special thanks to “ProfessorUmer Farooq” who gave us a golden opportunity to do this
wonderful project and for providing his invaluable guidance, comments and suggestions
throughout the course of the project.

Then we would like to thanks our parents who have helped us with their valuable suggestions
and guidance has been helpful in various phases of the completion of the project.

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 DEDICATION

 We dedicate this report to our families and love ones. Whatever we are it’s because of
our parents.
 To our respected teacher Mr. Yasir Iqbal. Our teacher makes us able to face different
challenges and achieve those challenges.

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COMPANY HISTORY

1982
Master Industries is launched, initially producing high quality sanitary fittings.
1987
Master bathroom accessories are launched in technical collaboration of England and Germany.
1995
Master Tiles starts its journey. Based on Italian technology, Master starts manufacturing and
marketing a wide range of wall tiles – a quality product that forces replaces imported items and
captures the market like a storm.
2000
Ever-increasing demand necessitates increase in production which has to be tripled. In the
same year, Master installs a most modern plant and acquires the recipe for in-house production
of tiles raw material including frits and colors.
It doesn’t stop there as the Italians, the world leaders in ceramic industry, start importing our
frits and thus the capacity of this plant is also forced to be tripled.
2003
Master Granite storms the market. These tiles are produced using Italian technologies that are
yet to be practiced in Italy and the finest raw material found in Pakistan.
2005

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Soon after its launch, the products of Master Ballpoint Pen Industries Pvt Ltd start capturing a
sizable market share.
2011
Master Poly Plastic Industries (Pvt) Ltd is established, involved in commercial production of
world class PPRC pipes and fittings, the first of its kind in Pakistan.
2012
Master Sanitary installs CNC Spindle Machines which increase production and improve quality.
2013
Traditional Manual Mould casting process is replaced by state-of-the art Automatic Mould
casting CNC machines which confirm 99 per cent production success.
2014
In-house Plastic Chrome unit increases quality and precision. High-quality Chrome Chemicals
imported from Germany.
2015
New Press Shop is created and Laser Printing introduced.
2016
It’s a year of revolution as latest Lathe Machines are introduced from China which will increase
accuracy and perfection of Master Faucet.
New Master Sanitary Plant with latest and advanced technology is under construction with
following advancements:
a) 50 per cent increase in production and quality
b) Automated units and processes

Vision & Mission Statement of Master Industries :

Mission
Adopting to rapidly developing technologies and meaningful investment in human resource
training and products and services to its customers at a competitive price.

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Vision
Master,s vision is to lead the market with innovations in product development to improve the
quality of life and life styles of its customers. To install 9 units of production till 2022.

Products:

SAMPLE OF MASTER TILES

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Mono Tiles

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Granite Tiles
Production Capacity:
70,000 / meter tiles in 1 hr.

Price:
NID tiles, 1500 Rs /meter

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NID Tiles
Target Markets:
Master tiles have Gujranwala , Sialkot and Karachi targeted markets in which they are enjoying
high profits .
They have already targeted the whole Pakistan.
They can,t fulfill the demand of the National orders , so they are not thinking to Globalize .

Key suppliers:
 European supplier (spain) :
Torricid (frit , chemical for tiles)
Glossy glaze (Italy)

 China supplier :

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Monte biancko (colour,s for tiles )

 Malaysian supplier :
Zircons ( for decoration on tiles )

Distributors:
 Shakeel tiles
 Yousaf tiles
 Shabir tiles (karachi)
One of the biggest Distributor , 4th new unit is being installed for them to meet their order
requirement , which cost them 10 billion.

FOUNDER OR Managing Director:

-Sheikh Mohammad Iqbal
We interviewed , MR UMAIR , who is Finance executive manager of Master tiles.
(03076616105) is contact number of this staff member. With help of him we are able to acquire
the information of MASTER TILES.

Inputs:
Fix variable inputs

 Land
 Building
 Labor with the (long run, terms contacts).
 Production units (Machinary)
Variable inputs

 Raw material
 Energy
 Gas

Major expenses of per Month:

 Gas bill,25 to 30 crore (gas is used in the production units of tiles).
 Electricity bill, 10 to 12 crore.
 Head offices admin salaries , 1.5 crore minimum.

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Total Employees:
5000 employees are working currently.

Elasticity Calculation:
There are different types of products which are being delivered by the company, and
have different prices. If the company increase the Price by 10% then the quantity
demanded for this product is affected by less than 10% as shown in the above
table.
Price Quantity

1500 100

1650 90

1815 80

1997 70

Elasticity = dQ/dP*P/Q
Price 1 is 1500
Price 2 after 10% increase is 1650
Quantity 1 is 100
Quantity 2 is 90, more than 10%
Values putting in formula:
Elasticity = -10/150 * 1500/100 = |-1|
-1 , in elastic because it is less than 1
TR = P*Q TR decrease = price increase * quantity decrease

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Competitor of Master tiles:
 Sonex tiles
 Sharjah tiles
Sharjah tiles use to import tiles from china earlier , and then Master tiles sued on them
in that case the import duties are applied on them results, the heavy tax charges were
implicated on Sharjah tiles.

Products Differentiation from Competitors:

 MASTER TILES , are different because they use the Foreign materials in their tiles.
 There Tiles ingredients is imported from Europe, China and Malaysia.
 There tile design is of foreign shape.
 They have well shiny polished tiles because of Glossy glaze imported from
Malaysia.
Market Structure:
Master tiles is of Oliogoplistic Nature.

Swot Analysis of Master tiles:

Strength Weakness
 High Brand Image Nation wide  We still got 70% of production
 Good Quality of Tiles Capacity
 Material used in tiles is of  Credit history is not strong
Foreign  High Labor Turn over
 High Demand  Bad Repute in market regarding
behavior to the Labor

Opportunities Threats
 Expansion in International  Sonex Company is entering into
Market Granite Tiles too
 Retail Partnership  Overseas groups entering
 Internet Shopping regarding Market
tiles

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 UNIVERSAL HOME APPLIANCES
History OF Universal Home Appliances

The name of the owner of Universal Home Appliances is Mr. Muhammad Afzal and Mr
Muhammad Anees started the family business between two brothers.. He started his business
with two kharad machines, one press Machine and labor.They started there business almost 40
years ago since 1982.

Vision & Mission Statement of Universal Home Appliances

Vision

Our vision is to more and more satisfy our customer with our products and we contribute more
and more in economy.

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Mission

Our mission is we give the good service to our loyal customer and also other customer because
they do not move our substitutes. We spread our product all over the world and treat our

customer with honesty, respect and integrity.

CEO/ Director Of Universal Home Appliances

Muhammad Afzal, Muhammad Anees

(Family business between two brothers)

Director

Mr Hussnain Afzal

We interview the director of Universal Home Appliances who’s name is MR Hussnain Afzal
who is our class fellow in B.com.

Products of Universal Home Appliances

Roof Fans

Air Cooler

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Washing Machine

Instant Geezer

Target markets

The Universal Home Appliances targeted the all areas of Gujranwala.

Key suppliers and distributors

The key suppliers of the company are local farmers

Inputs of the company

Labor

Drill Machines

Raw Material

Kharad Machines

Tools

Press Machine

Fixed inputs

Building

Equipments

press

Kharad Machine

variable inputs

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Raw Material

Tools

Fuel

Electricity

Largest Expense per Month.

The largest expense of the company

Employee salaries

Labor

Total Employees

There are 16 employees with 20000 salary per Month.

Elasticity of universal

 There are different types of products which are being delieverd by the company, and have
different prices. If the company increase the price by 10% then the quantity demanded for
this product is affected by less than 10% as shown in the above table.

PRICE of PRODUCT QUANTITY OF

PRODUCT
10000 5000
10500 4500
11550 4050
12705 3645
13975.5 3280.5
15352.5 2952.45
16887.75 2657.205

Now we calculate the elasticity from the above shown table.

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Suppose the price is 10000
Increase by 10% 1000
Price 1 is 10000
Price 2 after 10 % increase is 10500
Quantity 1 is 5000
Quantity 2 is 4500 more than 10 %
Formula
Elasticity = dQ divided by dP * P divided by Q
= 500 divided by _500 *10000 divided by 5000
= _1 * 2
= _2 is inelastic because elasticity is less then 1
TR = P*Q
TR increase = price increase * quantity decrease

The Competitors of the Universal

There are many competitors like Super Asia, Sonica, Boss, Indusand some local competitors
United washing machine and Allas room cooler

The business fall Perfect Competition

The business falls in perfect competition.so we say that that there are many buyers of the
products and many sellers to sell the product.

SWOT ANALYSES OFUNIVERSAL HOME

APPLIANCES

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Strengths:

Loyal Customers, High quality product Latest mechanized machinery.Highly motivated work
force.Own power generation plant.Organization has friendly environment and having strong
distribution.

Weakness

Manually working and manually office work. Centralized decision making.Less promotional
activities.Lack of benefits and rewards for employees.

Opportunities:

Direct selling to customers. Theycan be capture new market segments around the world. They
can be reduce the cost by proper utilization of resources.Theycan be hire well-educated and more
experienced employees.

Threats:

Political instability.Changes government policy.Globally economic instability.

COMPARISON OF BOTH BUSINESSES.

 The total number of employees of Master Tiles are 5000 while Universal Home
Appliances has 16 employees only.
 The largest expense of Master Tilesare Sui Gas bill and electricity charges while
Universal Home Appliances has a largest expense of Labor.
 Master Tiles business fall in Monopolistic while Universal Home Appliances falls in
perfect competition business.

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