strategic comparison of pel and singer pakistan
Post on 04-Jun-2018
234 Views
Preview:
TRANSCRIPT
-
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
1/30
Strategic Comparison
of PEL and SingerPakistan
-
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
2/30
Submitted To
Mam Tahira Azam
Submitted By
M.Ali Naqvi [L1F11MCOM0164] (Group Leader)
Arslan Nawaz [L1F11MCOM2165] (D.M.D)
Fatimah Haroon [L1F11MCOM2220]
Maaz-ul-Hassan [L1F11MCOM0162]
Aqsa Muzaffar [L1F11MCOM2169]
Zainab Abbas [L1F11MCOM0029]
Own Haider [L1F11MCOM2126]
-
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
3/30
Table ofContents
Companies Introduction .......................................................................................... 5
Introduction of PEL.............................................................................................. 6
Vision and Mission Statement of PEL .................................................................. 6About PEL ............................................................................................................ 7PEL Product Line .................................................................................................. 8
Introduction of Singer Plus.................................................................................. 9
Vision and Mission of Singer Plus ........................................................................ 9About Singer Plus .............................................................................................. 10Singer Product Line ........................................................................................... 10
SWOT Analysis of PEL and Singer ........................................................................... 12
SWOT Analysis of PEL......................................................................................... 12
SWOT Analysis of Singer Pakistan....................................................................... 14
Application 9 Strategic Tools on PEL ...................................................................... 15
Input Stage............................................................................................................ 16
Internal Factor Evaluation (IFE) ......................................................................... 17
IFE of PEL .......................................................................................................... 17IFE of Singer Pakistan ........................................................................................ 18
External Factor Evaluation (EFE) ........................................................................ 19
EFE of PEL .......................................................................................................... 19EFE of Singer Pakistan ....................................................................................... 20
Competitive Profile Matrix (CPM) ...................................................................... 21
Matching Stage ..................................................................................................... 22
BCG Matrix........................................................................................................ 23
IE Matrix............................................................................................................ 24
Space Matrix...................................................................................................... 25
SWOT Matrix..................................................................................................... 26
-
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
4/30
-
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
5/30
Com
panies
Introd
uction
Companies Introduction
IN THIS SECTION:
Introduction of PEL
Introduction of Singer
SWOT Analysis of PEL and Singer
-
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
6/30
Introduction ofPEL
Vision and Mission StatementofPEL
Vision Statement
To Excel in providing engineering goods and services
through continuous improvement.
Mission Statement
To provide quality products and services to the
complete satisfaction of our customers and maximize
returns for all stake holders through optimal use ofresources.
To promote good governance, corporate values, and
safe working environment with strong sense of social
responsibility.
-
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
7/30
Ab o utPE L
Pak Elektron Limited (PEL) is the pioneer manufacturer of
electrical goods in Pakistan. It was established in 1956 in technical
collaboration with AEG of Germany and the Malik family. In
October 1978, the Saigol Group of Companies1purchased major
shares of Pak Elektron Limited. At that juncture, the company was
only manufacturing transformers and switchgears. With the
Saigols in management, PEL started expanding its product range by entering into Air
Conditioner manufacturing.
Currently the company comprises of two divisions:
Appliances Division Power Division
Appliances Division
PELs Appliances Division is the flag carrier of the Saigol Group. This Division of PEL
consists of home appliances manufacturing.
In 1981, PEL window type air conditioners were introduced in technical collaboration
with General Corporation of Japan. In 1986-87, the company started manufacturing
of refrigerators in technical collaboration with M/s IAR-SILTAL of Italy. In 1987, PEL
deep freezers were also introduced in technical collaboration with M/s Ariston of
Italy. In 2006, the Company has started manufacturing of split type air conditioners of
various capacities as the customer choice has shifted from window type to split type
air conditioners. The product has received good response from the market, which
encourages the company to multiply its production in the coming years.
Today, PEL has become a household name. Its products are not only in great demand
in the local market but the Company has also started exporting its appliances to
foreign markets.
Power Division
PEL Power Division is one of the major electrical equipment suppliers to WAPDA &
KESC. Since 1956 the company manufactures transformers, energy meters,
1The Saigol Group is a group of companies owned by one of Pakistan's wealthiest families, the Saigols. The family and
its companies are based in Lahore, Pakistan. The Saigols originally hail from Chakwal. The group is managed by three
Saigol brothers: Tariq, Nasim and Taufeeq. Amin Saigol was the founder of the Saigol dynasty where he started a
Calcutta shoe shop; the shop eventually led the Bihar Rubber Works in 1938. Amin had a son called Yusuf who is the
father of this business Trio. In 1948, the Saigols migrated from Calcutta and initiated their business in Faisalabad, the
textile city of Pakistan, under the banner of Kohinoor Industries Limited. Tariq Saigol is the eldest brother; he is head of
Kohinoor-Maple group, which owns the Kohinoor textile mills and Maple-Leaf Cement. He is known to be openly critical
of the Pakistani governments lack of interest in the textile sector. Nasim Saigol heads PEL and Kohinoor industries.
-
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
8/30
switchgears, kiosks, compact stations and shunt capacitor banks. PEL also has had the
privilege of getting its equipment approved and certified from well-reputed
international consultants such as:
Preece, Cardew and Rider, England Harza Engineering Company, USA Snam Progeti, Italy Societe Dumezm, France Miner & Miner International Inc. USA Ensa, France
PEL Product Line
PEL Appliances Division Product Line
Refrigerator
Air Conditioner
(Split + Floor
Standing)
Water
Dispenser
Washing
Machine
Microwave
Oven
PEL Power Division Product Line
Transformer Energy Meters Switchgear
-
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
9/30
Introduction of SingerPlus
Vision andMission of SingerPlus
Vision Statement
To be the leading retailer of home appliances
in Pakistan.
Mission Statement
To improve the standard of life of our
customers by offering high-qualityproducts and services at affordable prices.
-
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
10/30
About Singer Plus
Singer has been operating in Pakistan
since 1877, when the first Singer sewing
machines went on sale in shops. Today,
Singer Pakistan Limited is a large,
diversified company with a presence throughout Pakistan. Singer has the largest
retail network in South Asia with over 750 stores.
Beginning with the sewing machine, Singers product portfolio has diversified to
encompass a highly successful multi-brand strategy combining products of top world
marquees with the companys own products across a range of household and
industrial categories.
Singer (Pakistan) B.V. holds 70.28% of the issued share capital of Singer Pakistan
Limited. Singer Pakistan Limited was listed on Karachi and Lahore Stock Exchanges in1985.
The foremost Home Appliance Retailer in Pakistan, offering various renowned brand
choices to its consumers, with a loyal customer base spread across the country from
North to South and East to West, catered to by a strong network of retail showrooms
and dealers and backed by the strongest of after sales service.
Singer Product Line
T.V Refrigerator A.C.
Deep freezer Cooking Range Water Heaters
-
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
11/30
Washing Machines Sewing machine Food processor
Toaster Electric Kettles Iron
-
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
12/30
SWOT Analysis of PEL and Singer
SWOT Analysis of PEL
S Strengths
Around 54.60% of Capital is Equity.PEL major shareholders are from Saigol Family which makes PEL family owned business
due to which there is a high level of control, trust and desire to gain profits.
Online portal system for employees.Customer care offices in +21 cities of Pakistan.Area sale offices in 19 cities of Pakistan.Strong distribution network in +50 cities of Pakistan with +3000 Distributors.Parts & Accessories of PEL products are available in all over Pakistan.PEL is one of the major electrical equipment suppliers to Water and Power Development
Authority (WAPDA) and Karachi Electrical Supply Corporation (KESC), which are the
largest power utilities in Pakistan.
International Awards and certificates like ISO 9002 certified by SGS Switzerland, nualEnvironment Excellence Award, 2010 for best Health, Safety and Environmental
performance etc.
Engineering Procurement and Construction division delivers custom designed and builtHV and EHV grid stations, electrification of housing projects, industrial parks and
optimum solutions for power utilization to all kinds of industries and commercial
customers.Attracting foreign investment around 0.03%.Brand image is strong.
W Weaknesses
Poor marketing departmentLess stylish home applianceFinancial ProblemsHigh pricePoor R&D
-
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
13/30
O Opportunities
Increase in product range like T.V, vacuum cleaners etcGeographical expansion. Joint venture with other companies.Partnership with other companies like Orient have partnership with Samsung etc.
T Threats
Family business High influenced of distributors. Big advertising budget of other companies.
Energy crisis. Alternative energy resource products such as solar A.C. etc Chinese brands are available in market in less cost. New competitors
-
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
14/30
SWOT Analysis of Singer Pakistan
S Strengths
Different ProductsBrands collaborationNationwide service network
W Weaknesses
Low market shareLow economies of scaleAvailability of costlier fundsPoor Marketing departmentPoor R&DObsolete technology
O Opportunities
Development and improved product mixDelivery of enhanced production efficienciesUp gradation of product portfolioLowering operational costsNew productsNew geographical areaAcquire new technology Improvement in brand image
T Threats
Riskiness of firm May face shortage of funds Questionable financial health Liquidation
-
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
15/30
Application9Strategic
Tools
onPEL
Application 9 Strategic Tools on PEL
IN THIS SECTION:
Input Stage
Matching Stage
Decision Stage
-
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
16/30
Inpu
tStage
Input Stage
IN THIS SECTION:
IFE
EFE
CPM
-
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
17/30
Internal Factor Evaluation (IFE)
IFE of PEL
PEL
Internal Factor Evaluation
Strengths Probability Rank WeightOwner Equity 0.03 2 0.06
Family Business 0.02 1 0.02
Portal System for employees 0.02 2 0.04
Area sale office 0.05 3 0.15
Customer care offices 0.07 4 0.28
Distribution network 0.09 4 0.36
Availability of Parts & Accessories of PEL
products0.07 4 0.28
Power Division 0.1 4 0.4
International Awards and certificates 0.05 3 0.15
Engineering Procurement and
Construction division0.12 4 0.48
Brand image 0.04 3 0.12
Weakness Probability Rank Weight
Poor marketing department 0.09 4 0.36
Less stylish home appliance 0.03 2 0.06
Financial Problems 0.1 4 0.4
High price 0.04 3 0.12
Poor R&D 0.08 4 0.32
Total 1 3.6
-
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
18/30
IFEof Singer Pakistan
Singer Pakistan
Internal Factor Evaluation
Strenghts Probability Rank WeightDifferent products 0.11 4 0.44
Brands Collaboration 0.1 2 0.2
Nationwide service network 0.09 3 0.27
Weakness Probability Rank Weight
Low market share 0.1 4 0.4
Low economics of scale 0.07 2 0.14
Availability of costlier funds 0.1 3 0.3
Poor marketing department 0.1 4 0.4Poor Research & Development 0.09 3 0.27
Obsolete technology 0.15 3 0.45
Poor Brand Image 0.09 3 0.27
Total 1 3.14
-
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
19/30
External Factor Evaluation (EFE)
EFE of PEL
PEL
External Factor Evaluation
Opportunities Probability Rank WeightIncrease in product range 0.14 4 0.56
Geographical expansion 0.11 3 0.33
Joint venture 0.07 3 0.21
Partnership with other companies 0.06 3 0.18
Threats Probability Rank Weight
Family business 0.03 2 0.06
High influenced of distributors. 0.14 3 0.42
Big advertising budget of Othercompanies. 0.1
40.4
Energy crisis. 0.09 4 0.36
Alternative energy resource products
such as solar A.C. etc. 0.083
0.24
Chinese brands are available in market
in less cost. 0.072
0.14
Decline in industry growth 0.05 1 0.05
New competitors 0.06 3 0.18
Total 1 3.13
-
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
20/30
EFE of Singer Pakistan
Singer Pakistan
External Factor Evaluation
Opportunities Probility Rank Weight
Developed & improved product mix0.07 1 0.07
Delivery of enhanced production
efficiencies 0.1 3 0.3
Up gradation of product portfolio 0.1 2 0.2
Lowering operational costs 0.08 2 0.16
New geographical area 0.08 4 0.32
Acquire new technology 0.1 3 0.3
Improvement in brand image 0.15 4 0.6
Threats Probility Rank Weight
Riskiness of firm 0.07 3 0.21
Shortage of funds 0.1 2 0.2Questionable financial health 0.05 2 0.1
Liquidation 0.1 3 0.3
Total 1 2.76
-
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
21/30
Competitive Profile Matrix (CPM)
Competitive Profile Matrix (CPM)
CSFs ProbabilityPEL Singer Pakistan
Rank Weight Rank Weight
Better and effectivecommunication system
with employees plus
customers
0.05 3 0.15 1 0.05
Better customer sale
services0.06 4 0.24 3 0.18
Efficient distribution
networks0.08 3 0.24 2 0.16
Improvement in Brand
image 0.09 3 0.27 4 0.36Increase market share 0.1 4 0.4 4 0.4
New product development 0.11 4 0.44 4 0.44
Geographical expansion 0.12 3 0.36 4 0.48
Joint venture 0.04 2 0.08 3 0.12
Acquire new technology 0.13 3 0.39 4 0.52
High tech and efficient R&D
department0.08 3 0.24 4 0.32
Removal of financialproblems
0.07 4 0.28 4 0.28
Efficient marketing
department0.07 3 0.21 4 0.28
Total 1 3.3 3.59
-
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
22/30
Matchin
gStage
Matching Stage
IN THIS SECTION:
BCG
IE Matrix
Space Matrix
SWOT Matrix
GSM
-
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
23/30
BCG Matrix
http://localhost/var/www/apps/conversion/tmp/scratch_2/Boston%20Model%20Chart.docx -
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
24/30
IE Matrix
http://localhost/var/www/apps/conversion/tmp/scratch_2/IE%20Matrix.docx -
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
25/30
Space Matrix
http://localhost/var/www/apps/conversion/tmp/scratch_2/Space%20Matrix.docx -
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
26/30
SWOT Matrix
http://localhost/var/www/apps/conversion/tmp/scratch_2/SWOT%20Matrix.docx -
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
27/30
GSM
http://localhost/var/www/apps/conversion/tmp/scratch_2/GSM.docx -
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
28/30
Decisio
nStage
Decision Stage
IN THIS SECTION:
QSPM
-
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
29/30
QSPM
Click on word to open a file
QSPM.xlsx
http://localhost/var/www/apps/conversion/tmp/scratch_2/QSPM.xlsxhttp://localhost/var/www/apps/conversion/tmp/scratch_2/QSPM.xlsxhttp://localhost/var/www/apps/conversion/tmp/scratch_2/QSPM.xlsx -
8/13/2019 Strategic Comparison of PEL and Singer Pakistan
30/30
Recommendations
Adopt a true decentralized organization setup which gives all employees to takepart in decision making.
The company should have a strong marketing information system to make properforecasts.
Make sure proper functioning of HR department. More allocation of budget to the marketing department. More focus on the pull strategy in its promotion mix. Shorten its cash conversion cycle.
Should also focus on direct selling of its products to its customers. Should constantly add technology in its products & systems. Should speed up its delivery process by expanding its stores in areas of high
demand.
Conclusion
Pel has a great strength & opportunities. PEL Should take risk and go to other
markets. PEL Management philosophy is the hurdle in the progress of the company.
PEL should takeadvantage of todays media power to capture market
. Future of PELis very bright as it is grabbing opportunities & has the potential to compete with
challenges.
top related