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At the end of my six weeks internship program at Pakistan Tobacco Company Jhelum Factory, I have compiled this report

that includes the companys detail and all the activities in which I had been involved during my internship period. The first project that was assigned to me was to design a template of leave entitlement on Ms-Excel. It involved detailed study of different kind of leaves along with its period and payment procedure. While going through this project I learned about different payment formulas, accumulation, conversion, its encashment and the conditions applied on it. My second project was to do the Record Management of all the BSOs at PTC JF. First I studied in detail the record management procedures and policies and then I managed around 50 files according to the checklist given to me. I observed various documents like interview assessment forms, approval forms, application forms, STEP form which is basically the appraisal form etc. This helped me in understanding their various procedures and policies of HR. The third project was to conduct training on Occupational Safety. This training was supposed to be given to food handlers which covered environmental, health and safety issues. I designed the whole training and made the presentation but due to some reasons it was delayed and I was not able to conduct that training.


Firstly I would like to thank Allah Almighty who gave me the opportunity to work in a professional environment and who always blessed me with countless favors. Next I would thank my parents who were always there to hold my hand whenever I fell. Truly they are the one who filled me with confidence with their words of encouragement which made me feel that I can do even the impossible. I sincerely believe that it is because of their prayers and support that I reached here. I would like to thank my teachers who cultivated in me those seeds that really proved fruitful for me. They were the one who illuminated my life with their teachings and through their guidance. I would specially thank sir Aqil, and Miss Samia who provided me with an environment in which I could learn and freely discuss the issues I had during my period of internship. Finally all those people who made my internship a pleasant memory that I would never forget.

Table of Contents
Chapter #1 Introduction: 1.1. 1.2. 1.3. 1.4. Background of the study Purpose of the study Scope of study Methodology used in the study

Chapter # 2 History of the organization: 2.1. Introduction of the organization 2.2. Company Background 3.3. Vision and Mission of the organization 3.4. Strategic objectives Chapter # 3 Organization Structure and Management Review: 3.1. Organizational chart 3.2. Structure of organization

Chapter # 4 SWOT analysis: 4.1. Strength 4.2. Weaknesses 4.3. Opportunities 4.4. Threats

Chapter # 5 Analysis: 5.1. Financial Analysis 5.2. Operational Analysis 5.3. Environmental Analysis 5.4. Competitor Analysis 5.5. Technology Analysis

Chapter # 6 Human Resource Assessment: 6.1. Human Resource Department introduction 6.2. Dimensions of HR 6.3. Classification of workers 6.4. Areas covered by Human Resource Department Recruitment and selection Training and Development Promotion Transfers Welfare Activities Health Aids Preparation of ID cards Internship Handling Industrial Relation Mutual Industrial Issues Voluntarily Separation Scheme (VSS)

Chapter # 7 Solution: 7.1. Conclusion 7.2. Limitations 7.3. Recommendations

Chapter #1
1.1 BACKGROUND OF STUDY Bahria University requires its student of business administration to undergo six to eight-weeks internship programme. Selection of organization depends upon the interest of the student as well as the field of specialization. This six week practical experience is then documented in the written form known as Internship Report which is based on theoretical and practical learning of the internee. To-Day professional fields are becoming more and more challenging. To survive and get success in any field, you should have the deep knowledge and appropriate skills of the concern field. In fact this is very true about the field of management studies. Knowledge and skills of a person can be polished, if he goes through some practical experiences. Internship provides an excellent opportunity to students of professional field especially management studies, to polish their skills and concrete their theoretical knowledge. Student gets the opportunity to match their knowledge with the actual happening of the fields. Internship program is the exposure for the students to the real working condition, and the chance to learn the practical work and know about the culture, working conditions, processes, and procedures of an organization to fulfill the demand of a job. All these things are very important for the student to pursue a good career. 1.2 PURPOSE OF THE STUDY The purpose of the report is to study the management practices, processes and procedures followed by PTC. The study is intended to analyze PTC in terms of its strength and weaknesses. The report also discusses the financial position of the company. The SWOT analysis is done with recommendations and suggestions.

1.3 SCOPE OF THE STUDY The reader can have a brief introduction to the PTC Jhelum Factory form this report. It encompasses the various departments of JF, their processes and procedures, and the various human resources policies adopted by PTC. It also encompasses the SWOT analysis of the company, and recommendations. 1.4 METHODOLOGY OF RESEARCH The method for data collection is central theme of the study. No study is completed without using the scientific and systematic ways to get latest knowledge about the study. So the methodology for data collection is based on the traditional categories i.e. 1. Primary Data Collection 2. Secondary Data Collection PRIMARY DATA COLLECTION In primary data collection I used the techniques of: 1) Personal observation. 2) Briefing and discussion during the internship with BSOs and MTOs departments. 3) Unstructured interview technique is also used when I faced any problem during work. SECONDARY DATA COLLECTION In secondary data collection method I get information from:

1) Annual reports of different years. 2) Brochures for information to customers. 3) Inter organization memos.


2.1 INTRODUCTION TO THE ORGANIZATION The business of British American Tobacco was originally established in 1902, when- to end an intense trade war. The Imperial Tobacco Company of the United Kingdom and the American Tobacco Company of the United States agreed to form a joint venture, the British-American Tobacco Company Limited. The BAT business began life in countries as diverse as Canada, China, Japan, Denmark, Germany, New Zealand, South Africa and Australia but not the UK or the USA. By 1910, its operations had extended to the West Indies, India, Ceylon (now Sri Lanka). East Africa, Java, Malaya (now Malaysia) and Nigeria. BAT listed on the London Stock Exchange in 1912 and British investors acquired most of its American parents shares. BAT held strong market positions around the world and had leadership in more then 50 markets. Since 1994, the group has grown global market share from 10.7 percent to over 15 percent. BAT has 86 factories in 64 countries. BAT uses more

than 700 million kilos of tobacco and has 25 leaf growing projects and 23 leaf processing plants, with over 300 brands in BAT portfolio and a market share of 15 percent, make the cigarette chosen by one in seven of the worlds one billion adult smokers. BAT differentiated portfolio of brands included well established international brands such as Lucky Strike, Kent, Dunhill, Benson & Hedges, 555, Viceroy, Pall Mall. John Player Gold Leaf (JPGL). BAT is the second largest quoted tobacco group with annual shipment of more than 800 billion cigarettes. 2.2 PAKISTAN TOBACCO COMPANY BACKGROUND Pakistan Tobacco Company is the first-multinational company of Pakistan and recently completed 64 years of its operations in the country. The company is the member of the multinational British American Tobacco group. History of Pakistan Tobacco Company: Pakistan Tobacco Company is the member of the multinational British American Tobacco group (BAT). In Pakistan, BAT carries out its business under the name of PAKISTAN TOBACCO COMPANY (PTC). Pakistan Tobacco Company is the first-multinational company of Pakistan PTC was incorporated in Pakistan and is listed on the three stock exchanges of the country. It was established in the same year when Pakistan took its birth in 1947, and took over the business of Imperial Tobacco Company (India). It had three branches Karachi, Jehlum and Akora Khattak, but Karachi factory however has been closed since 1992 due to heavy losses and some other reasons. The first plant was set in a warehouse in Karachi port with monthly production of 30 million cigarettes against sales of 60 million, the gaps being filled up by import. When Pakistan came into being all tobacco was imported in for production of

cigarettes. But in 1952, a development project was initiated in N.W.F.P. and the top quality American Tobacco found way to Pakistan. A factory was established in 1955 at Jehlum, and PTC became a Public Limited Company in the same year. Pakistan Tobacco Company has divided the whole country into 5 regions (Central Punjab, Southern Punjab, Northern Region, Lower Sindh and Upper Sindh). Within each region, there are four to six areas, and each area is further sub-divided into direct delivery and wholesale. In total, the company has five regions, 22 areas, 355 distributors and 12 area warehouses.


VISION: 1st choice For Everyone MISSION STATEMENT: Transform PTC to perform with the speed, flexibility and enterprising sprite Of an innovation, consumer-focused company

2.4 STRATEGIC OBJECTIVES Our strategy reflects our vision, being the champions of growth, Productivity, Responsibility and the wining organization.



3.2 STRUCTURE OF ORGANIZATION DEPARTMENTS Pakistan Tobacco Company houses eleven departments in all including those involved in direct manufacturing e.g. PMD and SMD, as well as supporting departments like IT and Security. Roles and responsibilities of each department are discussed as follows:

PRIMARY MANUFACTURING DEPARTMENT (PMD) Responsible for, Lamina Conditioning, Cutting and Drying Stem Conditioning, Cutting and Drying Cut Tabocco Storage (CTS) Converting bale of tobacco into blend Adjusting moisture level in tobacco Treating both stem and lamina of tobacco Flavor mixing and preparing Cut tobacco SECONDARY MANUFACTURING DEPARTMENT (SMD) Responsible for, Cigarette making - Taking tobacco from PMD and converting it into cigarettes with the help of multiple machines having different capacities - Materials used include filter rods, tipping paper, cigarette paper etc. - Also responsible for regular maintenance of machines including weekly service and handling during breakdowns. Cigarette packing - Taking cigarettes from making department and then converting them into packets - These packets are then put into outers and then finally packed in cartons known as CBCs - These CBCs are then transferred to shipping godowns

FINANCE Responsible for, Handling wages of workers & contractors Analyzing manufacturing cost including direct & in-direct costs. Book keeping section Cash Section General Ledger


Responsible for, Maintain industrial relation between employees and workers Maintain worker services record Worker training and promotion Worker welfare activity Legal obligation on behalf of workers and management

ENGINEERING Responsible for, Responsible for keeping a stock of machines parts Maintaining a Goods Receiving Register for keeping a track of goods received Ensuring that all machines are in working condition Providing engineering supports functions that are required in manufacturing departments

QUALITY ASSURANCE DEPARTMENT Responsible for, Consistent monitoring of product and services to meet the quality standards set by BAT Monthly quality briefings Introduction of ever-improving quality standards through programs that enable employees to do their job first time every time INFORMATION TECHNOLOGY (IT) Responsible for, Handling internet access provision Providing users with access to various softwares and platforms such as Lotus Notes and SAP etc. Providing employees with company email addresses. Ensuring a sound and robust networking system in whole plant Serving as support team for trouble shooting of computer systems TRAINING Responsible for, Conducting trainings of employees in order to keep them abreast with latest innovations in industry Executing Training Need Analysis and Specialized Needs Assessment and allotting trainings in required areas of improvement

ENVIRONMENTAL HEALTH & SAFETY (EH&S) Responsible for, Providing and maintaining healthy and safe working environment including use of cleaner technologies and safer working system. Complying with all the applicable national and BAT laws and regulations pertaining to environment health and safety. Analyzing impact of its activities on its surroundings and working personnel

SECURITY Responsible for, Ensuring safety of companys property, assets and personnel on factory premises Providing a congenial working environment where everybody could work without any fear SUPPLY CHAIN DEPARTMENT (SCD) Responsible for, Production planning to meet requirement of market Procurement of all materials other than WM, leaf and machinery Managing effective inventory control of WM and tobacco leaf Arranging timely dispatch of Finished Goods Running and maintenance of Companys fleet of vehicles


4.1 STRENGTHS Continuous learning and improvement. Sustainable growth. Environmental standards achievement. Market leadership in the world. Being beneficial to the community (CSR) Diversified workforce and environment.

Technologically advanced machinery and equipments. Good salaries packages. Focus on health and safety on the company premises. Training and development of its employees.

4.2 WEAKNESSES Salaries difference between workers who work more and the one who put minimum efforts. Technological advancement unemployment will increase. would decrease the workforce and

Lack of advertisement due to controversial industry Workers are always under threat because of downsizing. Salesman commission is low

4.3 OPPORTUNITIES Greater opportunities of promoting lower brands in rural region. PTC has the potential to further improve the cost reduction method. Create a better work environment in GLT department because of more hazards in this department. Lowering the downsizing will create a good image in the eye of regulatory authorities and government. Focus on its key brands will result in high growth rate. Export of premium brands As most of the population is in low social economic class, there is an opportunity for PTC to increase market share in this segment through focus strategy Light cigarettes. Market potential in rural areas. Rising popularity of smokeless tobacco. Participation in social activities can enhance the corporate image. Intense competition provides opportunity for continuous improvement in the quality of brand.

4.4 THREATS Some of its competitors are also producing high quality brands like Marlboro by Lackson. Internationally some countries are continuously promoting anti-smoking slogans like the ban of smoking in Bhutan in 2002. Better marketing campaigns by rivals. Their well-established brands are highly copied by some local manufacturer. The political, economic situation is not stable in Pakistan. Strict laws and regulations by Government. Increase in Taxes. Increasing health concerns. Competitor strategies Contraband and counterfeit cigarettes Philip Morris International acquired Lakson Tobacco Company.


5.1 FINANCIAL ANALYSIS: By doing the financial analysis of the statements it has been observed: That in 2010 firm is better utilizing its assets and profit margin is also high In our common size balance sheet we see that our long term assets increased from previous year and most definitely this increase occurred due to increase property, plant and equipment. While other long term assets remained almost the same. Our current assets decreased from previous figure. This decrease had occurred due to decreased in inventory by too much. On the equity & liabilities sections we see that our equity didnt change by too much. Our noncurrent liabilities had increased which is because of increase in Differed Taxation. Our current liabilities also increased by a large figure. Common size income statement shows decreased trend in the cost of sales, because of that gross profit had increased. The firms operating profit didnt change by small amount. Firms EBT has increased thats because our financing cost has decreased from previous year but our net income had increased by almost a tiny amount

5.2 OPERATIONAL ANALYSIS: Jhelum Factory manufactures cigarettes according to the demand of the marketing department. JF also keeps in mind the machines capacity. JF changes its machine by increasing and lowering the capacity as per the. Recently Jhelum Factory establishes GDX2 machines in its production department, which produce 10,000 cigarettes per minute.

5.3 ENVIRONMENTAL ANALYSIS: PTC is promoting itself as an environmental friendly organization by adopting tree plantation campaign. PTC planned 3 million trees* annually in different areas of the country. ECONOMIC ENVIRONMENT: Majority of the population of Pakistan belongs to the low class and has low purchasing power. The taxes imposed by the govt. on tobacco industry are also very high that causes a significant increase in the prices of cigarettes which takes the quality brands away from the reach of the majority. So for this segment (lower class) PTC has introduced Embassy and Gold Flake. For lower middle there is Capstan and Wills and for high and upper class there is Gold Leaf and Benson and Hedges. TASK ENVIRONMENT: As mentioned earlier, the population of Pakistan is growing by 2.7% annually and number of smokers is increasing as well. Market size therefore is getting larger and it is an opportunity for cigarette manufactures. But unfortunately Lakson has

emerged as a strong competitor of PTC and has attracted all the 10% growth of potential consumers where PTC was not able to do so. This tough competition is brining a decline in the profits of the company due to which PTC has decreased the prices of almost all its brands (except Benson & Hedges) to remain in the competition.

5.4 COMPETITORS ANALYSIS MAJOR COMPETITORS: LACKSON TOBACCO COMPANY (LTC): LTC is PTCs largest competitor and the second legal cigarette manufacturer in the Pakistan besides PTC. Marlboro and Red & White are a few of its brands. LTC used to be affiliated with Phillip Morris, the giant in the global cigarette market; however, this association was dissolved few years ago. Its market share is actually greater than PTC, around 46.2%. The main goal of LTC is money making and it believes in short-term gains rather than long-term benefits. Surprisingly, LTC uses quite unethical marketing strategies for example a number of under-the-table deals are made with the retailers to convince them to take off PTCs merchandize from their store, and to accept LTCs merchandize. This obviously results in a huge loss to PTC as it costs around Rs. 100 000 to fully merchandize a small shop MARDANWALLAS: These brands are manufactured in Mardan and thus are called the Mardanwallas. These are normally low category cigarettes (under Rs. 10) for example Gold Street. The goal of the Mardanwalls is solely money-making, and is not concerned about acquiring a strong position in the market. These are also 100% tax evaded. The government has made legislation regarding this issue; however, nothing has been done so far. Secondly, their factories are located in the northern areas so tax

evasion becomes very easy. No proper marketing structure or strategies exist for these brands. Their ATL activities, which include electronic and print media, are extremely low. These brands usually survive on BTL activities, which mainly consist of posters. COUNTERFEIT / OTHER TAX EVADED BRANDS Counterfeit brands emerge as a threat for PTC, and later become competition as well. In Pakistan, the concept of copyright laws and its implications is almost nonexistent. As a result, these brands are manufactured without any fear. As a result, PTC has suffered a huge loss in the recent years as its premium brand Gold Leaf, has been copied in three different qualities with three different prices for each. These brands are normally sold in thickly populated villages to uneducated and low-income people, and at interchanges and motorways. There are also other tax evaded that is smuggled brands in the market. These are called ITBs (International Transit Brands). These are usually smuggled from Peshawar through Afghanistan or Dubai.

Market Share: Market Share of PTC and its competitors

Pakistan Tobacco 45.70% Lackson Tobacco 44.20% Mardanwalls 2.20% Counterfeit/other 1.8% Tax evaded brands 5.90%
5.5 TECHNOLOGICAL ANALYSIS IT is the backbone of every business, without it concept of successful business is becoming impossible in modern business environment. Process Technology: System Application Program (SAP) SAP (SYSTEM APPLICATION PROGRAM) The company undertook the mammoth task in 2004 to replace the existing enterprise resource planning (ERP) system with SAP, world leading ERP system. A smooth implementation across the organization, in short period it was possible though excellent cross functional efforts by the projecting the Sap will greatly facilitate the achievement of further efficiencies in all key business process. PTC is the pioneer of using latest technology in Pakistan. The machine they use to manufacture cigarettes GDX 2 can produce 10,000 sticks per minute. Everyone knows that technology has a significant effect on companys production capabilities. Use of this technology (GDX) enables PTC to fulfill the market demand well in time and more efficiently


6.1 HUMAN RESOURCES DEPARTMENT Every organization is comprised of people. Acquiring their services, developing their skills, motivating them to high levels of performance, and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational goals and objectives. Human Resources Department is the part of the organization that is concerned with the people dimension. It is a staff or support function in the organization. Its role is to provide assistance in HR matters to line employees or those directly involved in producing organization goods and services. The main functions of HRD are to resolve the workers grievances and care of disciplinary procedures, misconduct, faults and omissions. The HR department provides an opportunity for the employee and performance manager to discuss development goals and jointly create a plan for achieving those goals. Development plans should contribute to organizational goals and the professional growth of the employee. Core Function of HRD Industrial Relationship Recruitment Selection Training & development Placing Promotion Transfer Salary statement

Agreement with Collective Bargaining Agents Occupational health programme Legal affairs 6.2 DIMENSIONS OF HUMAN RESOURCE Mission: According to the board of Human Resources Department, the mission of the Human Resources Department is; To attract, recruit, develop and remunerate the best suitable talent at all levels and build a culture that triggers our corporate values in order to achieve the companys overall objective. Product: According to the Department, the product of the Human Resources Department is Passionate, skilled, confident and excellent employees. Customers: Customers of Human Resources Department are, Finance Department, Engineering Department, Information Technology Department, Production Department, Leaf Department, Green Leaf Thrashing Department, Materials Management Department, and Marketing Department. Processes: The processes of Human Resources Department include Recruitment,

remuneration & benefits, training and development, industrial relation, recreation & welfare, and record management. Human Resource Department is the most important asset of each organization. The role of this department is like the

backbone in the organization. It provides the most competent people to the organization to get their strategic goals and to get loyalty for the organization. Composition of Employees In PTC JF, there are 37 grades. Out of these 37 grades, Grade 1 to 10 includes general workers to senior supervisors and clerks. From 30 to 33 includes BSO's (Business Support Officers) From 34 to 37, MOM's (Members of Management). When an employee of grade 10 gets promotion he directly jumps to grade 30 and is designated as Business Support Officer. 6.3 CLASSIFICATION OF WORKERS The workers employed in PTC Jhelum Factory and Leaf areas are classified into two categories: Permanent or non- seasonal workers. Temporary or seasonal workers. Permanent Workers: Permanent workers are hired by HRD. The factory employs them directly on permanent basis. Therefore, they are required to meet all the requirements that the company has established for a worker. New workers when hired are properly trained and closely watched at work during the early period of their job. Temporary Workers The temporary workers are hired by HRD as seasonal workers. They are on the job for six months in a year i.e. from July to December now this period has declined to only 3 months. At depots they are hired for buying tobacco and doing other jobs in the Leaf areas. At factory they are hired normally for GLT services.

If a temporary worker works for the whole season, he gets the benefit of special bonus. If he remains absent for 10 consecutive days, another worker for the rest of the season replaces him. If a seasonal worker remains absent for three consecutive seasons, his license is cancelled. The wage level and terms and conditions for the temporary workers are nearly the same as that of permanent workers. 6.4 AREAS COVERED BY HR DEPARTMENT 1) RECRUITMENT: Recruitment is mainly concerned with securing the potential candidates. It is the process of contacting the public and encouraging suitable candidates to come forward for final selection. In PTC for recruitment, first of all there is a requisition from a department for a post which if approved by the HRD and then advertised by the head office. Thereafter there is a short-listing from a pool of candidates. The remaining candidates undergo tests and interviews, after which there is a call, a medical test and at the end the best candidate is selected. FROM WITH IN THE INDUSTRY: Employee Referrals Advertising Employment Agencies SELECTION: Preliminary Selection Filling Up The Application Form Wide Range Interview Employment Proffer

2) TRAINING & DEVELOPMENT: An employee is trained in accordance with the needs of the concerned department. The HRD specifies needs of training and arranges courses, which can be carried out in the country or abroad also. The annual report of the employee includes the courses he/she has received. The courses include office management, communications, etc. Other thing is the employee development. The difference between the employee training and development is that, that training is present oriented activity while development is future oriented. Employee development helps the employees and enables them to cope up the future challenges and perform the activities in the coming future. 3) PROMOTION: The employees having a good performance are promoted to next higher post there are two factors for promotions service/seniority, which is the time that employee has spent the organization. Performance, which is based on workability, efficiency of an employee, certain jobs require special training while some does not. In case of workers annual assessments from is field in service record at the beginning of every year. Line managers do their assessments, their immediate bosses. That is from January to December having remarks of unit manager, sign of in charge of department, marks according to percentage point system. In production upgrading is easy, group operator to machine controller. 4) TRANSFERS: Transfer and movements takes place from team to team inter departmental and from one department to another e.g. depot change in leaf area. The transfer may be one complete ground, job relation, and complete scuffing of development.

5) WELFARE ACTIVITIES: One of the major aims of Human Resources Department is to ensure the better working condition and to take care of welfare of the workers. Therefore, special attention is paid to those activities that help in generating enthusiasm in the workers and keep their loyalty to the company. For the sack of this a special post of Welfare Officer is there in HR department. Following are some of the welfare activities provided by PTC to its workers. Learning Resource Center for employees, their dependants and the community. Dastakari Center for girls. Provision of free of cost, clean and Hygienic food for employees. Free first aid services. Mobile Dispensary for treatment of diseases for inhabitants of the community. Arrangement of medical & blood donation camps. Arrangement of sport tournaments. Conveyance facilities/allowances for the workers. Uniform allowance for the workers. Hajj Scheme for workers. Jahaize Grant to the workers for their daughters marriages. Smoking allowances. Burial and funeral allowances.

Arrangement is made for distribution of Long Service Awards for the workers who have worked for at least 25 years at PTC. Arrangement of Bara Khana on any major achievement. Eid Millanprograms. Arrangement of retirement parties. Maintenance of Factory Mosque. Scholarships for dependents of the workers. Enrolment of workers with Employees Old Age Benefit Institute & Employees Social Security Institute. 6) HEALTH AIDS: a) First aiders are trained from Alshifa their presence is around the clock for each shift, common, red and green. They help in medical checkups typing health records. b) Medical examinations for workers twice a year January/July treatment allowance in pay. For a new recruit the doctor who is medical officer of the factory does health checkup. For canteen workers laboratory checks like urine, blood, hepatitis, x-ray is done.

7) PRERPARATION OF ID CARDS: When a person is employed in any section of grade, even contractors are issued security cards with date of validity, passport size photograph, and NIC number and signed by issuing authority duly by HR Department.

8) INTERNSHIP HANDLING: Commonly internship period is six weeks but it may vary subjects to the requirement of the institution. When applications are found legible, the students are informed with the joining latter, when they report they are dealt accordingly and paid duly at the end of the internship if successful, they are given certificates. 9) INDUSTRIAL RELATION: To keep good and friendly working atmosphere aiming healthy towards production is necessary to have cordial relation with workers, whenever a issue, problem, a grievance or misunderstanding is developed between management and unionized staff it is taken over by understanding, reforming and stress relieving manner through a specifies process. The industrial relations officers follows the industrial relations ordinance 1969. 10) MUTUAL INDUSTRIAL ISSUES: The department looks after following issues: Steadfast singing of documents without writing them. Illegal strike Stoppage of work. Wages, rent, allowance. Meal regulation. Special attendance allowance. Hajj allowance. Leaves. Financial assistance. Basic pay increase.

11) VOLUNTARILY SEPARATION SCHEME (VSS): The company has a scheme for voluntary separation, under this scheme the employees has the opportunity of early retirement, he is paid more percentage of his salary plus provident fund. The %age of salary to be paid to them depends upon the years remaining to his retirement. The percentage is as below: Up to 5 years 75% Up to 8 years 40% 9 to 10 years 36% 11 to 15 years 25% 16 to 20 years 18% 1 to 25 years 15%


7.1 CONCLUSION: Pakistan Tobacco Company is part of a growing industry and the trends in the sales for the five years studied have been positive. As said earlier the company is enjoying a major share of the market through most of its brand being the market leader. Thus the company did not let go of the opportunity of the trends in the market growth and started invested in new and improved capital. The major competitors of the company are importing their finished goods stock from their operations in other countries and are well-established companies too. PTC still enjoys the control over the local market, but todays customer is more price conscious and if PTCs competitors give competition through improved production facilitates and reduction in costs PTC might not be able to transform to low cost production facilities in short span of time. Thus for the last six years PTC has been investing in new tangible assets. To do so the company has been taking advantage of long term loans and leasing. This has led to an increase in companys financial expenses. The company also had to take short term loans to run day to day expenses as most of its operative income is unstable and cannot be reliable for day to day expenses. The need for short term financing also escalated due to increased financial expenses as a result of long term borrowing. Thus short term financing also resulted in an increase in financial charges. The company on the whole is a good venture for investing as it is showing a potential for growth in the future. The investment into fixed assets during the previous years has lead to a growth in sales. Thus as the firm comes out of its long

term financing burden the interest expense for long term financing will decrease. The company is also gaining reputation in South Asian markets and with growth in production it will also be able to explore international markets. Thus the growth in the markets catered by the company when will go international the sales revenue of the company will grow significantly. But from an investors point of view the most important thing to be considered is that the company is part of a highly taxed industry. This taxes and duties will always take away a major part of companys income 7.2 LIMITATIONS Up-to-date information is one of the limitations of the study because the information, which is available, is not sufficient to fulfill the requirement of the report, and as all know PTC is such a large organization and the span of operation is too big so to cover it in little time is one of the limitation of the study, because it is very difficult to cover each and every aspect of an organization in allotted to me. The internship program was limited to the Jhelum Factory only so the review section only contains data about the JF and does not cover the whole of the organization. 7.3 RECOMMANDATIONS: WORKERS: Working environment needs improvement is tried with heavy dust which may cause lungs and eyes problems. It needs top level commitment to train employees and to focus on implementation of health and safety policies. The job of Labor is more hard and dangerous for health, as compared to other production unit of the JF. The labors should be provided additional allowances.


All the marketing strategies and planning should then be aimed at the consumers in such a way that the slogans and images carry the message to the consumer in a very convincing fashion for winning their favour. The modalities of such a strategy should be worked out by marketing team familiar with the tastes, conventions and preferences of the local people.


PTC must initiate a vigorous campaign for curbing the growing menace of smuggling of foreign cigarettes into the local market. And since NWFP has the notorious reputation for being the hub of smuggled and contra banned goods in the country as most of smuggled brands sneak into the country through Afghan border therefore, it is incumbent on officials at the Area Sales Office to go out of the way in a bid to put an end to this trade.

For this the company should collaborate with the retailers and custom officials to pin point such elements who are engaged in this trade and through Concerted efforts uproot them.


Likewise, a large number of non-tax paying cigarette manufacturers are into the business in the province that must be taken to task and their operations be halted and confiscated forthwith.

REFRENCES: Interviews of different officers of different departments.