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EXECUTIVE SUMMARY
With the changing world scenario the need for effective and efficient managers has increased manifold. The organizations require managers with analytical and problem solving abilities enabling them to exploit the opportunities presented today, the most important pre-requisite for the managers is to have well developed communication skills so that they not only are able to communicate within the organizations but also with the groups outside the organization, customers, suppliers government and community. The development of these skills not only requires strong theoretical knowledge but also a practical experience. Although the two months of internship program has not fully developed these abilities but it has at least given me a feel of the market. It has, to some extent, enabled me to see CEO the relevance and applicability of various tools and theories of management, moreover, this training has been created an awareness of various career opportunities available in the market as well as t. 1~S-S-11~S-1111.. 1~S-S-11~S-111111Bw1s1p1a1p11e1r1.1j1p1g11111 t1h1e11~S-[;11~S1n11a1t1i1o1n1-111n1e1THE-NA~1JPG S-[;11
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SUGARCANE Sugarcane crop serves as a major raw material for the production of white sugar and Gur. The share in value added of agriculture and GDP are 3.4% & 0.7% respectively. 8
OTHER MAJOR CROPS Maize Tobacco Bajra & Jowar Rapeseed & Mustered MINOR CROPS Minor crops such as: Sunflower Canola Masoor Mong Mash Onion Chilies Potatoes Accounts for 12.3% of agriculture value added.
VISION
To be one of the superior and leading enterprise in agriculture sector recognizing for flexibility, responsibility, responsiveness and quality.
Our customer will share in our success through modernized products, authenticated quality and exceptional services.
Structured to maintain in depth competence and knowledge about our business, customers and nationwide markets.
The integrated teamwork through our experienced, educated and skilled workforce for the efficient and effective accomplishment of the objectives.
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MISSION STATEMENT
Our mission is to be recognized as premier supplier of seeds, fertilizers and pesticides, excellence in customer services and sale support programs.
CORPORATE GOALS
Provision of distinctive quality products.
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PART II
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Objectives: My prime objective of studying the SAWA-AG (network) was to get the actual experience by working in the company and to find the awareness of the SAWA-AGs position in the market. As marketing management is of my academic interest, so in providing this service I want to learn about marketing system of SAWA-AG (network). I want to supplement my formal education with practical experience. I want to meet not only the compulsory requirements of the degree but also to promote my personal development and professional experience regarding Marketing. I want to learn through some combination of participation and observation of at least a portion of organizational work. Moreover, after getting actual experience I want to apply this knowledge in practical field of my life. I want to gain an awareness of the organizations position in the community.
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PART III
OVERVIEW TO THE ORGANIZATION
Introduction to SAWA-AG- NETWORK. Brief History Nature of the organization Business Volume Product line
Number of employees
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BUSINESS AREAS
The following are the business areas of SAWA-AG-NETWORK. 1. 2. 3. 1. Seeds Fertilizers Pesticides. SEEDS:SAWA-AG-NETWORK offers a wide verity of quality seeds of major crops to their prestigious customers. Seed varieties are launched in the market with the brand name of SAWA-SEEDS. Seeds comprises of about 35% of the SAWAs total business. SAWA deals in the seeds of the following major crops: Cotton Rice Wheat Okra Sorghum Sudan Grass 2. FERTILIZERS:Fertilizers are one of the basic inputs of agriculture and its timely availability is very crucial for agricultural production. SAWA-AG-NETWORK offers various fertilizers to boost up the per acre yield. Fertilizers contribute to 15% of SAWAS business. The major fertilizers are: Mala Mall (Tonic for cotton crop) Sarmaya (For Potatoes & vegetables) Sawa- Zink (Tonic for any crop) Al-Karam (For Soil conditions) 3. PESTICIDES: Plant protection measures help in increasing for hectare yield by protecting crops from damages because without effective protection against the attack of pests & diseases, 16
beneficial outcome of other inputs may not be realized either. In this regard SAWA-AGNETWORK provides facilities such as: Locust Survey & control Arial pest control Testing & Ground sprays. Sawas Pesticides business account for 50% of total sales volume. Pesticides product comprises of three main categories: Insecticide Fungicides Vedisides.
Business Volume:
CUSTOMERS
SAWA-AG-NETWORK operates with the sophisticated network of dealers in almost twenty districts. SAWA has given a dealership certificate to various dealers major of them are as follows.
SR. NO.
1 2 3 4 5 6 7 8 9 10
DESCRIPTION
Master Shah Mohammad. Corporation Soban Traders National Traders Decent Spray Center Majid & Company Shadab Spray Center S.M Saleem & Company Ittehad Traders Ramey Traders Khuram Zarie Corporation
DISTRICT
Chishtiyan Hasilpur Haroon Abad Bahawal Nager Arifwala Pakpattan Dipalpur Okara Sahiwal Faisal Abad 17
11 12 13 14 15
Awan Traders Hamdard Zarie Corporation Zimidar Zarie Corporation Mian & Company Sawa Markaz
COMPANY PROFILE
NAME
Mohammad Saeed Akhtar Muhammad Naveed Akhtar Abdul Jabbar Mohammad Irshad
EDUCATION
BSC Honors (Agriculture) MBA
DESIGNATION EXPERIENCE
CEO 20 Years
Marketing Manager
12 years
10 years 10 years
Numbers of employee
18
Product line
SEEDS
Coron Autumn 8292 6690 Spring 8595 6390 Wheat Sehar Inqalab Bk 2002 Cotton BT 121 BT 806 BT 511 BT 370 BH 160 CIM 473 CIM 496 VIP 333 FVH 148
Pesticides
Insecticides Emamaectim Benzoate Chlopryrifos Triazophos Atratox
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PART IV
ORGANIZATION STRUCTURE
Organization
al structure Functional
Making
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Overview of
departments
ORGANIZATIONAL STRUCTURE
CEO
MANAGER ADMINISTRATIO N
BUSINESS MANAGER
INERNAL AUDITOR
PURCHASE MANAGER
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FUNCTIONAL AREAS
ADMINISTRATION DEPARTMENT
AUDIT DEPARTMENT
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ENVIRONMENT
TASK ENVIRONMENT:
Task environment of SAWA-AG-NETWORK includes: Agriculture Sector Competitors Raw Material (Seeds, chemicals) Market Sector Customers, clients Labor Market
GENERAL ENVIRONMENT:General environment of SAWA-AG-NETWORK includes: Knowledge of Farmers Agricultural Technology Govt. Policies Economic Conditions Financial Resources
SIZE
SAWA-AG-NETWORK is a small size organization having more than 60 employees.
CONTROL
SAWA-AG-NETWORK has very strong control system and the management is very effective in maintaining the overall control of the organization.
DECISION MAKING
In SAWA-AG-NETWORK the decision making process is centralized as well as decentralized. Long term or strategic decisions are centralized in nature while short term decisions which are taken at the lower level of hierarchy are decentralized. Organizational decisions that are Centralized includes: Setting prices Hiring employees & 24
Deciding Marketing Territories. While decentralized decisions includes: Short term goals Day to day expenses Budgeting
Overview of departments:
. ACCOUNTS DEPARTMENT Accounting department is necessary for every organization, weather it is private, Merchandising, Services, Manufacturing, Government, and Selling. SAWA-AG-NETOWRK also has accounts & Finance department. This is carrying the major burden of routine activities. Accounts of organizations are maintained by the accountants and these accountants work under Manager Accounts & Finance. All accounts of the departments are computerized. Most of the activities of the organization are on seasonal basis. In the season the work load increases by several time with compared to routine work. The routine work of accounts department includes: Recording and Posting the daily transactions Up-dating the accounting records Prepare bank reconciliation statement on monthly basis Trial Balance Balance sheets Profits & loss statements Comparative statement Making appropriate arrangements for accounts Audit. Collection of funds and their proper posting. Recording & Posting of daily receipts. 25
The SAWA-AG-NETWORK adjusts its accounts on quarterly basis and closed its accounts on annual basis.
AUDIT DEPARTMENT
AUDIT PROCESS For achieving the objectives the audit process is grouped into there phases: 1) 2) 3) 1) Planning Execution Reporting PLANNING: In planning phase auditor concentrates on the following matters. Describe entity Establish audit objections and scope Determine materiality Assessment of audit plan & Prepare an audit program
There are three types of risks by which auditor may encounter while auditing documents. a) Inherent risk 26
b) c)
So, because of this, the auditor must be alert about: Internal control weaknesses Inequancies in record keeping Errors Unusuall transactions
2)
EXECUTION:
Sampling concept Perform control procedures Perform analytical view Sampling for substantive test Review working papers
3)
REPORTING In reporting process auditors: Desire conclusions and evaluate audit findings. Prepare audit reports
TYPES OF AUDIT
In SAWA-AG-NETWORK the internal Auditor conducts the following three types of audit. 1) Routine Audit 2) Pre- Audit 3) Investigated Audit Now these are explained below: 27
1) ROUTINE AUDIT:
Routine audit means the daily working of the internal auditor, which he performs simultaneously with the business operations. The main purpose of this audit is to keep the business records up to date.
2) PRE- AUDIT:
Pre- audit is the scrutinizing of the dealing of the interested parties before the execution of the order. The internal auditor scrutinizes their past dealings and records to ensure the fairness of business. 3) INVESTIGATIVE AUDIT Investigative audit means when the internal auditor physically verifies the stock after the execution of order. He also visits the branch offices & production plants for the physical verification of stock with their records in the respective books.
Monthly bank reconciliation statement Physical verification of cash in hand. Monthly local purchase comparison with budget & identify the variances. Compare the actual expenses with relevant budgets and identify the variances.
MARKETING DEPARTMENT
BUSINESS MANAGER:
The business Manager is responsible for: Overall management of sales & distributions Establishing the sales targets for regional managers. Selection of appropriate & prompt distributors. Negotiation with interested parties. Report to chief executive officer.
REGIONAL MANAGER
The Regional Manager is responsible for: Assignment of work to sales officers Coordinating the sales officers Monitory the sales staff Accomplishing the sales targets. Report to business manager
SALES OFFICERS
The Sales officers are responsible for: Working of crop protection officers (CPOs) 29
Order booking from distributors Execution & delivery of orders Adjustments & acceptance of claims Report to regional manager
MARKETING MANAGER
The marketing manger responsible for: To implement the overall policies and strategies of the organization Managing the working of its sales staff Coordinating the efficient network of distributors Providing the helpful advisory services to the farmers Executing the Sales promotion programs Reporting to business managers
MARKETING COORDINATOR
The marketing coordinator is responsible for: Preparation of contracts signing for parties Confirmation of the delivery 30
Educating the farmers to develop the taste for the products Arranging the meeting of farmers Reporting to marketing manager
FUNCTIONS OF HUMAN RESOURCE DEPARTMENT In the todays modern world Human resources has become the strength of the economy of developed countries. The focus of economy has shifted a great deal from financial resources to human resources. The strength or weakness of an organization largely depends upon the: Knowledge Education Experience 31
Skills and Expertise of the employees. Hence, the human resources department performs the following functions: Human Resource Forecast Acquiring suitable man power Trainings Performance Appraisal Motivation
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Sales manager
Marketing manager
Regional S.M
Marketing Coordinator
Marketing Vice president Advertising and Sales Promotion Marketing Manager Marketing Coordinator Sales Manager Regional Sale manager Area Sale manager Crop protection officers
1 1 1 1 1 5 25 75 110
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HEAD OFFICE
SAHIWAL
BRANCH OFFICE
TOBA TAKE SINGH REGION
BRANCH OFFICE
CHISHTYAN REGION
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BUSINESS MANAGER:
The business Manager is responsible for: Overall management of sales & distributions Establishing the sales targets for regional managers. Selection of appropriate & prompt distributors. Negotiation with interested parties. Report to chief executive officer.
REGIONAL MANAGER
The Regional Manager is responsible for: Assignment of work to sales officers Coordinating the sales officers Monitory the sales staff Accomplishing the sales targets. Report to business manager
SALES OFFICERS
The Sales officers are responsible for: Working of crop protection officers (CPOs) Order booking from distributors Execution & delivery of orders Adjustments & acceptance of claims Report to regional manager
The crop protection officers are responsible for: Informing the farmers about new products Personal selling Feed back Suggestions & Report to sales officers
MARKETING MANAGER
The marketing manger responsible for: To implement the overall policies and strategies of the organization Managing the working of its sales staff Coordinating the efficient network of distributors Providing the helpful advisory services to the farmers Executing the Sales promotion programs Reporting to business managers
MARKETING COORDINATOR
The marketing coordinator is responsible for: Preparation of contracts signing for parties Confirmation of the delivery Educating the farmers to develop the taste for the products Arranging the meeting of farmers Reporting to marketing manager
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Product Strategy:
SAWA-AG-NETWORK has direct links with various agricultural research centers in a country. When they introduce new verities of seeds and develop new formulas for local fertilizers, SAWAS introduce these seed varieties and fertilizer with their due permission through their proper distribution and marketing channels. SAWA-AG products including all the features described in the product review section will be sold with a warranty if their product should expire. The brand and logo will be displayed on the product packaging CASH COW PRODUCTS SAWA- Seeds is the cash cow product of the firm which contributes to major portion of total sales volume. MOST PRODUCTIVE DIVISION Chistiyan is the most productive division for the firms business.
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MAJOR PRODUCTS
SAWA S PRODUCTS
PESTICIDES
LOCAL FERTILIZER
SAWA SEEDS
INSECTICIDES
FUNGICIDES
COTTON
RICE
WHEAT
SOIL TONICS
NEUTRITION TONICS
VEDICIDES
OKARA
SORGAN
SODAN
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Price Strategy:
SAWA-AG-NETWORK offers to customers lower price products as compare to their competitors with quality, because this low price strategy attract greater customer through this SAWA can become the market leader company. These prices reflect a strategy of (1) Attracting desirable channel partners (2) Taking market share from their competitors
Distribution Strategy:
SAWA-AG-NETWORK operates with a diverse network of distributors. For the efficient execution of sales operations, it relies on the prompt distributors. For this purpose it selects the distributors on the basis of following: Credibility Goodwill Work Experience Sales volumes Location Fair Dealings Govt. Certificate of dealership PROVISION OF DEALERSHIP CERTIFICATE After selecting the appropriate distributors, the dealers send the photo copy of certificate of dealership business issued by the Govt. to SAWA, then the organization issues a Dealership Certificate to them, for one-year period. Dealers having the dealership 40
certificate of the firm are entitled to sale its products. The firm reissues the dealership certificate to those, whom it wants to continue the business after the expiry of one year. SAWAS SALES OUTLETS Master Shah Mohammad Grain Market Chishtiyan Soban Traders Grain Market Hasilpur National Trader Sader Bazar Haroon Abad. Decent Spray center Grain Market Bahawal Nager. Majid & Company Arifwala Shadab Spray Centre Pakpattan S.M. Saleem & Company Depalpur Ittehad Traders Okara Ramey Traders High Street Sahiwal Khauram Zarie Corporation Faisalabad Awan Traders Chichawatni Zimidar Zarie Corporation Toba take sing Sawa Markaz Jahaniyan ADVANCE BOOKING SYSTEM In SAWA-AG-NETWORK there exists an advance booking system in the off season. A special discount offer of 15% OR 20% is given in the season to those distributor who get the order booked in the off season. This rebate in given for seeds. In case of fertilizers and pesticides, the firm gives a quantity discount to those distributors who purchase the products in bulk quantity. DELIEVERY OF ORDERS SAWA-AG-NETWORK does not have its own vehicles for the delivery of order, rather it hires the vehicles and expenses are born by the organization. 41
ADJUSTMENTS AND CLAIMS SAWA-AG-NETWORK has much emphasis on the satisfaction of its customers. Thats why it immediately gives quick response to customers claims and provides adjustments. For this purpose, the sales officers are in a direct connection with their customers.
PREPARATION OF INVOICES
COPY TO CLIENT
DELIVERY
PAYMENT 42
Promotional Strategy:
MARKETING MEDIA SAWA-AG-NETWORK advertises their products through the following sources: Broachers & Local Newspapers Sign Boards & Calendars Magazines Sales outlets etc. SALES PROMOTION PROGRAMS SAWA-AG-NETWORK launches various sales promotion programs to boost up the seasonal sales of its products which involve: Cash Rebates & Discounts Quantity Discounts Price offs & Prizes Free Samples & Gifts etc. PUBLIC RELATIONS Public relation is the life blood of every organization. As mostly of the population of the country is directly or indirectly belong to agriculture sector, thats why public relations are much important for agricultural business. Keeping in view the importance of public relations, SAWAAG-NETWORK always tries its level best to create & maintain efficient public relations.
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1. SEEDS:SAWA-AG-NETWORK offers a wide verity of quality seeds of major crops to their prestigious customers. Seed varieties are launched in the market with the brand name of SAWA-SEEDS. Seeds comprises of about 35% of the SAWAs total business. SAWA deals in the seeds of the following major crops: Cotton Rice Wheat Okra Sorghum Sudan Grass
2. FERTILIZERS:Fertilizers are one of the basic inputs of agriculture and its timely availability is very crucial for agricultural production. SAWA-AG-NETWORK offers various fertilizers to boost up the per acre yield. Fertilizers contribute to 15% of SAWAS business. The major fertilizers are: Mala Mall (Tonic for cotton crop) Sarmaya (For Potatoes & vegetables) Sawa- Zink (Tonic for any crop) Al-Karam (For Soil conditions)
3. PESTICIDES:
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Plant protection measures help in increasing for hectare yield by protecting crops from damages because without effective protection against the attack of pests & diseases, beneficial outcome of other inputs may not be realized either. In this regard SAWA-AG-NETWORK provides facilities such as: Locust Survey & control Arial pest control Testing & Ground sprays. Sawas Pesticides business account for 50% of total sales volume. Pesticides product comprises of three main categories: Insecticide Fungicides & Vedisides.
Delay in delivery of products Less training to CPO Less brand awareness to customers Very less use the promotion tools
COMPETITORS
SAWA-AG- NETWOR is operating in a dynamic environment and facing an intense competition. There is a list of major competitors offering substitute products.
LIST OF COMPETITORS
Pakistan Agro Chemicals Karachi. Dada Jee Corporation Lahore. Agro let Lahore Green Crop Private Limited Vehari Well Care Agro Chemicals Multan NH Chemical Karachi Agro Chemicals Lahore. UDL Private Limited Lahore Well Green Private Limited Lahore. Warble Private Limited Multan
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SWOT ANALYSIS
The overall evaluation of companys weaknesses, strengths, opportunities and threats is called SWOT ANALYSIS STRENGTHS SAWAs main strengths are as follows: Credibility in dealings Continues provision of quality products Trained teams Vast experience of CEO Responsiveness Professional Management style
WEAKNESSES
SAWA is still facing the following weaknesses: Limited financial resources Small scale business Fewer incentives given to employers No proper procedure for promotion. Centralized System of decision making OPPORTUNITIES SAWA has the following opportunities: New business horizons Technological advancement New Product development 50
Market expansion High demand than supply of products THREATS The main threats which SAWA is facing are as follows: Price war Large No. of Competitors Substitute products New Entrants Govt. rules & regulations
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PART IX
RECOMMENDATIONS & SUGGESTIONS
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RECOMMENDATIONS AND SUGGESTIONS:1) The outside building of the head office is not so such impressive. It should be properly painted. So, it could leave a lasting impression on the minds of the visitors. 2) A big sign board containing the name and slogan of the organization should be affixed on the main gate of the organization. 3) A proper place should be there for motorbike and car parking. 4) SAWA-AG-NETWORK is advertising its products through print & display media. It should also use the broadcast media to advertise its products such as: Television F.M Radio and Cable Network
5) SAWA-AG-NETWORK is highly centralized organization. It should adopt decentralized division making in some areas. 6) Monetary as well as Non-Monetary awards should be given to the employees to best motivate them 7) The organization must have its own delivery vans for on time distribution of its products. 8) SAWA is dealing with two branch offices, which face the heavy burden of workload; the branch offices should be increased to at least four to lessen the workload and to strengthen its market.
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