Table of Contents

Internship Report

Metro Motorcycle Company

Table of Contents

4Executive Summary

5Chapter One

5Introduction

51.0 Background of study

51.1 Purpose

51.2 Scope

51.3 Objective

61.4 Methodology

61.5 Organization

61.6 Summary

7Chapter 2

7Organization

72.0 Half page introduction

72.1 Overall respective sector in Pakistan

72.2 Role of the Organization in Pakistan

82.3 Overall organization and functions of organization in Pakistan

102.4 Organization office in which I worked

112.5 Summary

12Chapter 3

12Organization Analysis

123.0 Half Page Introduction

133.1 Brief history of the Organization

143.1.1 Actual and prescribed functions

143.1.2 Relationship of head office to the offices

153.1.3 No. of Departments

163.1.4 Offices or field offices

163.1.5 Current staff

173.2.1 Current staff of branch according to qualification and experience

183.2.2 Training received by no. of people

183.2.3 Workload

193.2.4 Salary Structure

193.2.5 Promotion system

193.2.6 Incentives & Motivations

203.2.7 Responsibilities Performed

243.2.8 Critical Analysis of the Branch

253.3.1 Communication System

253.3.2 Morale of Staff

263.3.3 Physical facilities

263.4 Performance

273.6 Summary

28Chapter 4

284.0 Introduction

284.1 Policies

324.3 Success

334.4 Summary

34Chapter 5

34Application of Models

345.0 Half page introduction

355.1 SWOT Analysis

36Strengths

37Weaknesses

37Opportunities

38Threats

395.2 PEST Analysis

40Political

40Economic factors

41Social Factors

41Technological Factors

41Summary

42Chapter 6

42Recommendations

Executive Summary

I joined Metro Motorbikes Company for the sake of internship of six weeks. Internship was undertaken for the sake of learning some practical knowledge which will be helpful in further studies and for any job. Metro Hi-Tech (Pvt.) Ltd. was established in 1973 by Younas group of industries and it enters in to motorbikes field in 2003. Metro Motorbikes Companys main products are MR-70 andMR-125. Metro has second highest market share in the industry. Its main office at Lahore and the regional office in which I worked as internee is also the only manufacturing unit of Metro Motorbikes Company and known as Gujrat region or AJK region.There are almost thirteen departments overall in Metro Motorbikes Company but not all of them working in this regional office. So for the sake of internship I start studied the whole process of Manufacturing from purchase of raw material up to sales of finished products and providing after sales to customers.

Chapter One

Introduction1.0 Background of study

In Masters of Business Administration (M.BA), doing internship is one of the important courses and has equal markings like other courses. In internship student is asked to join an organization for a specific time period to learn from the business organizations practically, that how they implements those concepts which we read during our M.BA courses? At the end of internship, student has to submit internship report of what he/she gain from that organization to the respective supervisor. 1.1 PurposeThe basic purpose of our internship is to understand the practical implementation of our studies, and the purpose of this report is to inform our supervisor that what we gain from that organization in the given time. 1.2 ScopeBookish knowledge is not the sole purpose of (M.BA) but through this internship I have a lot of information regarding the basic concepts of my studies. This internship help a lot to me in understanding the basic concepts of management sciences and will help me in future because internship in this organization give me practical knowledge rather than bookish knowledge. This internship will also help in future in getting better job.1.3 Objective

Objective of this internship is to learn from the experienced personal who are working in the field and also to learn what hurdles they may face while the implementation of concepts/strategies in the organization and how they overcome on them. Another objective of this internship is to have a grip on my area of specialization which is marketing.1.4 Methodology

A short time of six week is allotted to us to understand the whole functions of the organization. Though it is not possible, but I manage in this way that for the first I understand the whole organization generally, than pay my keen interest to my area of interest/specialization. While doing internship for the completion of this report I gather information from the supervisors of the relevant departments and also from the head of departments.1.5 Organization For the sake of internship I need to select an organization to learn the proper implementation of my studies. That organization is to be selected in which there is proper management system. So for that purpose I Choose Metro Motorbikes Company because this organization is working on proper management principles. 1.6 SummaryIn nutshell, doing internship is one of the major activities in M.Com. Sole purpose of doing internship is to understand the practicality of the concepts which we learn from our courses in M.COM. Doing internship is very fruitful for us to gain practical knowledge from experienced personals. While doing internship I study all of the departments of the organization and study some of the departments in detail and collected data from the supervisors and heads of the relevant departments of that organization. Internship is also beneficial for us in future either to do job or to do further studies.Chapter 2Organization

2.0 Half page introductionIn the locality of Gujrat city there are several organizations are working to boost up countrys economy. Fan industry of Gujrat is famous in the country. Fans from Gujrat are also exported to several overseas countries. Many organizations in Gujrat (including fan industry) didnt have any proper organization system and they are still working on old ways of managing organization.

So that I choose Metro Hi-tech this organization manufactures motorbikes. The main reason behind choosing Metro is this, that it is one of some organization in Gujrat who have proper management system. Metro have several departments to manage their organization like productions, human resource, sales and marketing, procurement, quality and so on. Metro is working on international standards. Main office of Metro is located at Lahore.2.1 Overall respective sector in PakistanAs the demand of motorbikes is increasing many organizations enter in this industry. There are almost 40 firms which are producing bikes. Demand of bikes in Pakistan is increasing day by day so there is a high need of investment in this sector. All of the organizations related to this industry are earning reasonable profits but still there is a need of improvement in the respective sector. Motorcycle industry in Pakistan manufactured about 1.6 million motorbikes in the current year and industry experts believe that this figure will increase to 2 million as the increase in demand. In motorbike industry of Pakistan there is a high demand of 70cc motorbikes and very immense competition as well in manufacturing 70cc motorbike. Atlas Honda is market leader of the industry with almost 50% of market share. 2.2 Role of the Organization in PakistanIn Motorbikes industry Metro motorcycles is one of the market leading brands. Metro receive brand of the year award 2010 which is a great effort by Metro that they achieve this award by competing many national and international organizations. Last year Metro set a sales target of 6000 units and Metro due to its high reputation and Goodwill in the market achieve 140% of the targeted units. This year Metro sets a target of 10,000 units of which Metro achieve 60% of the targeted units till now.Metro is second organization in this industry after Honda which is doing their business only in cash form just because of their goodwill and their quality products. On the other hand all of other organizations are doing business on credit basis.2.3 Overall organization and functions of organization in Pakistan

Metro Motorbikes Company is very well established organization in Pakistan. Metro is serving the whole nation by its 5 regional heads (Azad Jammu Kashmir, Rawalpindi, Lahore, Multan, and Karachi) that are covering whole of the country for the sake of sales of Metro motorbikes and all related matters.Metro Motorbikes have very established management system to manage the whole organization very effectively. Metro Motorbikes have 13 departments to manage their whole process and the human resource, they are; Procurement

Finance

Quality

Store

Production

Human Resource & Administration Accounts Pre delivery Inspection (PDI)

Sales and Marketing

Information technology (IT)

Product development

Finished goods

After Sales and Services

The process of Metro Motorbikes starts with purchasing raw material from the vendors. They make contracts with the vendors for the delivery of specific material with specific quality for a specific time period. Quantity of material to be purchased is decided by the sales target which is to be achieved.

After the material is purchased and checking its quantity it is checked by the Quality department. They check the quality of raw material purchased. If the raw material doesnt meet the specified quality standards it is rejected and sends back to the vendor.If the material is passed it is transferred to the store room, from where material is transferred to the supervisor of the relevant sub departments within production department.In production department bikes are manufactured. In production department there are further departments which are divided on the base of specialized work like engine assembly, wheel assembly, paint shop, main assembly and so on. The end product of every sub department is transferred to the main assembly and on the main assembly whole bike is assembled.When a bike is assembled it is transferred to the next department which is known as Pre Delivery Inspection (PDI). In this department bike is checked by QC department. There are several tests which are which are specially conducted in this department to check a bike. If a bike didnt perform up to the mark it is transferred to the relevant sub department in the production department to which its problem is relating and if a bike pass out all the tests it is ready for the delivery and is transferred to the sales department.

In sales and marketing department, bikes which are transferred from production PDI department are transferred to the dealers of METRO Motorbikes. In METRO Gujrat there is only sales and after sales department is working and all marketing concerns are handled at the main office at Lahore. In sales department METRO MR-70, MR-125 and other spare parts are sold to the authorized dealers who are sale dealer, warranty dealer and parts dealer. In HR&A department whole of the workforce which is about 350 workers are managed. All of the concerns related to employees are handled in this department from hiring till firing. Finance and accounts are two separate departments. Both of these are working only in the main office at Lahore. In finance department routine bases of transaction regarding finance are occurred while accounts department maintain accounts of Metro Motorbike Company.

Function of IT department is to maintain all of IT related equipments in various departments of the organization. 2.4 Organization office in which I worked

Actually Metro is working in two totally diverse fields one is Metro Motorbikes and the other one is Metro fans. I start my internship in Metro motorbikes because of their proper management system. Metro motorbikes have more than 13 departments and their main heads in Lahore office.

In Gujrat Metro didnt have all of the departments because in Gujrat their main concern is with manufacturing so they have all those departments which are related to manufacturing from purchasing raw material (Procurement) to selling (Sales and after sales services) departments. Some of the departments which have no direct link with throughout the process from purchasing raw material to selling bikes are accounts, marketing, are handled through the main office at Lahore.So for the sake of internship I spent my time in manner to understand the whole process of METRO motorbikes, from purchasing raw material to the end which is selling motorbikes and dealing with warranty within after sales department.2.5 Summary

For the sake of internship I choose Metro Motorbikes Company Gujrat because of it well organized management system as compare to other manufacturing organizations. Profit potential in motorbike industry is very high because of increase in demand. There are almost more than 40 organizations in this industry. Metro is at second place in Pakistan in this industry and receives brand of the year award 2010. We can measure success of Metro by sales of last year that they 140% of the target sales.Metro is serving whole the whole nation through its 5 regional heads and more than 70 sectors under these heads to serve the customers nationwide. There are 13 departments in Metro Motorbikes Company to manage the organizations process. I worked as internee in the only manufacturing unit of Metro and this region is AJK region also known as Gujrat region some of the departments of Metro like Procurement, Store, Quality, Production, Finished goods, Sales and Marketing and After Sales. Chapter 3

Organization Analysis

3.0 Half Page Introduction

In this chapter I will try to analyze the whole Metro Motorbikes Company on the base of my knowledge which I gain about the organization during my internship. As I have discussed earlier that in Gujrat where I worked as an internee the only manufacturing unit of Metro Motorbikes and main or head office is in Lahore. Motorbikes are supplied to the whole country from Metro Gujrat. All the decisions and budgets are planned at head office and then communicated to the supervisors of the relevant departments. Metro start manufacturing motorbikes in 2003 and in a very short time period Metro came in competitors list of many multinational brands like Honda, Yamaha, Suzuki etc. Metro is an ISO 9002:1994 certified organization. Metros product and development department is so efficient that it introduces many innovations before its competitors do e.g. digital meter is introduced by Metro for the first time in the market. Metro is highly committed in producing quality products and is approved by various institutions e.g. Pakistan Standard and Quality Control Authority, Standard Development Center. 3.1 Brief history of the OrganizationMetro was established in 1973, by Younas group of industries and become a private limited organization on 7th October 1985. In start Metro manufactures electrical fans of various designs and shapes it includes ceiling fan, Pedestal, Exhaust, table fans, circumatic fans and double action bracket fans. After having expertise in the field of Electrical fans Metro started a new setup of manufacturing motorcycles under the same brand name in 2003.VisionTo be a leading industry manufacturing contemporary high quality durable products making life truly pleasant.

MissionTo build better relations with all stake holders especially with customers and tailor sophisticated products at affordable price to serve local and global markets.

Main Goals of the Organization

It is goal of Metro organization to achieve international standards in production

Metro Motorbikes Company is committed I innovating new products and improving current products. Metro is trying its best to adopt highest level of customer services. Metro struggles in developing more customer-oriented approach

Objectives

Metro objective is to provide friendly and safe working environment to employees Metro objective is to develop human resource to inspire workmanship Its Metros objective that continuous improvement in plant ensures better quality. Metro objective is to train its technicians and develop a network of authorized workshops. Metro objective is to ensure the availability of genuine spare parts to the customers. Metros objective is to have an efficient network of dealership for delivery of products. 3.1.1 Actual and prescribed functions

Metro is competing with many national and multinational companies in the market. Metro has its prime focus on its customers and for that purpose Metro is widening its area to many new cities and also makes quality and innovative products for its customers. Metro Motorbikes Company deals in sale of Metro MR-70 and MR-125 in various color ranges but its main focus is on MR-70 just because of its high repute and demand in the market. Metro also sales spare parts of Metro motorbikes to Metro automotive parts dealers, not only this Metro also gives warranty to buyer for motorbike and also provide free service of motorbike for 1st two times.

Metro is just focusing on MR-70 but they are not focusing on MR-125 but still there is demand of 125cc bikes of other companies like Honda so Metro needs to give equal importance to both bikes. 3.1.2 Relationship of head office to the offices

The main office of Metro Motorbikes Company located at Lahore. All the departments are operated directly from the main head. There are about 13 departments in Metro to manage their operations. Some of the departments are only operated at main office like accounts and finance and on the other hand all the other departments which have direct link with production like procurement, quality, sales etc. are working in Metro Gujrat.All the decision is taken in the main office Lahore. All the supervisors from all the departments went to Lahore every weekend the decisions are communicated to the relevant department supervisor e.g. top management set a target to manufacture 300 bikes per day, than this message is transferred to procurement departments supervisor to buy enough raw material to meet target, HR&A departments supervisor to hire enough workforce to meet the target and so on. 3.1.3 No. of Departments

To manage various operations every organization need a specialized set of departments. Similarly Metro has various departments to manage all of its operations and they are;

Procurement

Quality

Production

Sales and Marketing Information Technology (IT)

After sales services

Human resource and Administration (HR&A)

Pre Delivery Inspection (PDI)

Dispatch

Store

Not the entire departments are working in Metro Gujrat but some of them are working here in Gujrat properly and rest of all departments are working and managing operations at Metro Lahore.3.1.4 Offices or field officesMetro Motorbikes Company has their regional heads as sub offices. They divide the whole country in four regions i.e.

Lahore

Karachi

Rawalpindi

Multan

Azad Jammu Kashmir also known as Gujrat region. These regional offices are used for better and prompt communications. In these field offices there are only staff related to sales department, after sales and HR&A department. These regional heads are further sub divided into sectors to manage some aspects of sales and after sales services in a better way. Under Lahore region there is Lahore sector, Faisalabad sector and Gujranwala sector and Multan sector there are Multan sector, Dera Ghazi Khan Sector, Bahawal Nagar sector and Rahim yaar Khan Sector. There are almost 72 warranty dealers of Metro Motorbikes Company under these regions and their sectors.3.1.5 Current staff

Currently Metro Gujrat has very experienced staff in all of its departments through which Metro is progressing very rapidly. There are 25 staff members working in various departments of Metro Gujrat. Following are some individuals with whom I worked as internee. In Sales and Marketing department there is only one person Mr. . . who is responsible for all the concerns regarding sales and marketing. In after sales services department there are two personnel Mr. and Mr. In procurement department there is only one person managing whole of the procurement department and communicating to the head office of procurement department at Metro Lahore. In production department there are round about 350 members in various sub departments of Metro motorbikes production department e.g. Engine assembly, Paint Shop, wheel assembly etc.3.2.1 Current staff of branch according to qualification and experienceAll of the staff personnel are experienced in their relevant fields and are working with Metro for a long period of time. For any new recruitment for the management posts Metro required a person having master degree and minimum middle for the workers in production department. As far as current staff is concerned following is the qualification and experience of some of the employees at Metro. In production department now a days it is rule to hire a person having qualification at least middle, but current workers in production department are even illiterate but they are specialized in their fields.3.2.2 Training received by no. of people

Just like other advanced and well developed organizations Metro trained their employees to make them trained and up to date in their relevant department.Training need for the employees is accessed by the relevant department supervisors. Training is provided to the employees under an organization named as Pakistan Electrical Fan Manufacturers Association (PEFMA).Metro also give training to the external people about the maintenance of Metro motorbikes under an organization Technical Education and Vocational (TEVTA) and at the end of training Metro gives certificate to the individuals.3.2.3 WorkloadWorkload refers to the number of hours employees worked in Metro. In Metro working hours are from 8:00 am to 5:00pm. Employees worked in the organization for about 9 hours. There is a break to employees from 1:00pm to 1:45pm and in this break lunch is offered to all of the employees of Metro by the organization free of cost.Employees are also allowed to work for extra time and they are being paid on per hour based predefined rate along with the salary.3.2.4 Salary Structure

Metro is using job based method to give salary to their employees which means that salary is paid to employees according to their job post. Metro is paying Rs.,,,,,,,,,,? minimum wage which is set by Government of Pakistan for labors. Metro pays salary to employees according to their experience in Metro or any previous experience with any organization. Metro also pays some allowances to its employees e.g. house rent, utilities, conveyance allowance, and medical allowance. 3.2.5 Promotion system

Promotion system is used in almost every organization to give reward to honest and hard worker employees of the organization. Similarly in Metro promotion system is adopted and individuals are promoted to upper grade by evaluating their performance. This process is also known as succession planning that one is prepared for higher job post after the retirement of person on that post.

3.2.6 Incentives & MotivationsIncentives and motivations are some tools to boost up employees performance who are working well and also positive reinforcement for the employees who are not working up to the mark.

In Metro incentives are paid to various departments on various bases, because performance measures are not same for all of the departments. Incentives to employees of production department are paid on occasional bases in shape of money e.g. In after sales department also, staff is not rewarded with money. They are also rewarded with tours but within the country. Organization affords all of the expenses of tour. Staff members from after sales department went to tours with warranty dealers of better performance.3.2.7 Responsibilities PerformedAs internee I joined Metro on for a time period of six weeks. The main purpose of my internship is to understand the whole organizations management system. Metro has its head office at Lahore and all of the operations of Metro are operated at Metro Lahore. All the departments working here are sub offices of Metro organization. Metro Gujrat is a manufacturing unit of Metro so it has more of its concerns with production of motorbikes and all other related functions.

So for internship purpose I decided to study whole of the process of Metro Motorbike from purchase of raw material to sale of motorbikes to sales dealers and providing after sales services to the employees. Duties performed in first week

To understand the whole process of Metro, in the first week Mr. from HR department and Mr. give me brief introduction of Metro motorbikes and all of its functions and departments operating the whole process.

To study thoroughly about the production process I start my internship from procurement department. While in working as internee in procurement department they only told me functions of this department and rest I observe from their working. In short main function of procurement department is to buy raw material from particular vendors and transfer it to production department. Now Metro Motorbikes Company has 80 vendors. Metro buys raw material from vendors on credit basis.

To choose a new vendor Metro gives tender notice in newspapers and then vendor is selected by a panel including personal from top management and from finance department too. After setting quality standards and rates with vendor Metro Motorbikes Company gives a pilot lot order to supplier which is to check sample and after that routine orders are given to supplier. This department is monitored by main office of Metro Motorbikes at Lahore. Duties Performed in second WeekIn the next week I study the remaining sub departments of production department paint shop and main assembly in which motorbike is assembled at the end.

After analyzing the whole production department I moved toward next department which is Pre Delivery Inspection (PDI). In this department various tests are conducted to check motorbikes that whether they are working properly or not. Some of the tests are wheel alignment test, speed test, electrical system test, speed meter test, accelerator test and so on. After these numbers of tests, if the bike qualified all of the tests bike is transferred to dispatch or finished goods department. Duties performed in forth weekIn fifth week of my internship joined after sales and services department Mr. Sabih-ur-Rehman and Mr. Badar give me a detail view of after sales department. There are 3 warranty dealers in AJK region. They also tell me about warranty policy of Metro motorbikes and they deals with claims. They also give me description of services which are offered twice by Metro organization free of cost for a new motorbike. They also tell me about training they give to the service dealers. How they get feedback from customers and how they give report to higher officials and also provide me some information about free service camp conduct by Metro as sales promotion of their brand. Duties Performed in fifth Week In the last week I practically do some work with Mr. Badar. I check the claim slips which are filled by warranty dealers and are submitted to after sales department for the sake of collection of dues from organization.

I also visit HR department to collect some information regarding internship report from MR. Hassan and also collect some information about IT department.3.2.8 Critical Analysis of the BranchThe branch in which I worked as an internee is known as AJK or Gujrat region of Metro Motorbikes Company and this branch is also having pivotal importance in Metro organization because it is also the only production unit of Metro Company.

Being as internee I saw that this branch is performing at its best. All of the departments are working on rules and regulations and also adopting fundamental studies which are important to run an organization. There is a need of improvements in the organization in almost all of the departments at Metro Gujrat. There is lack of power for decision making. All of decisions regarding any aspect took at main office in Lahore. There is a need of decentralization in the organization to some extent to make some decisions which didnt need any sort of involvement from top management. While working as an internee in sales and marketing and after sales department I observe that employee must be rewarded with financial rewards instead of any national or international tour. While working as internee in production department I observed that free hand is given to employees and supervisors are not monitoring employees properly. If they do so efficiency of employees can increase easily. Metro Gujrat have very well educated and experienced management who are struggling to maintain and improve the position of Metro. Communication system of this branch with main branch is pretty good and Metro Gujrat has very effective communication system within the organization as well. Production department is working very well. The entire workforce in the department is fully trained and experienced. To reduce number of errors and to make a perfect motorbike for customers, there is a quality check at every point while manufacturing a bike. Throughout the process of manufacturing from purchase of raw material to sale of finished goods all departments are working on standards for production of quality product. 3.3.1 Communication SystemMetro Gujrat has it main office at Lahore and all the major decisions took by top management at Metros main office. All the head of departments from this branch go to Metro Lahore and decisions are transferred to them for its implementation. A single decision is further bifurcated for all of the departments so that it becomes easy to implement. 3.3.2 Morale of StaffOverall progress has a great link with the morale of staff working in the organization. There is a direct link between organizations output with the level of employees morale.

While working with management staff at Metro I observed that morale of employees at Metro is very high because they work enthusiastically for the organization. Recent achievements like brand of the year award and achieving140% of sales target also shows morale of employees at Metro.3.3.3 Physical facilities

To get maximum output and utilize all of the abilities of personnel it is required to provide them all of the physical facilities in which they feel comfortable to work. Metro provided separate rooms to separate departments, rooms are fully furnished and air conditioned, computers are available to every staff member with high speed internet facility, during break time lunch is offered to all of the employees at Metro with a very delicious menu changes on day to day basis and all the other facilities like furniture, stationery, etc. are provided to staff members.3.4 PerformancePerformance of manufacturing organization can be measured by number of customers satisfied with the quality of products manufactured by the organization. As Metro manufactures motorbikes and they are targeting whole country.

Performance of Metro can be measured by some of its recent achievements and the way Metro do its business. Performance through Customer satisfactionCustomers are fully satisfied by using Metro motorbikes. Metro has second highest market share in motorbike industry. There is very little difference in both Honda and Metro but on the other hand there is a great difference in the price level of both motorbikes. That is why large number of customers are willing to buy Metro motorbikes. Performance in terms of accounts and budgets After Honda Metro is 2nd largest brand in motorbike industry of Pakistan. Metro is the only local brand which is doing business on credit basis. Metro receive brand of the year award in 2010 which is an achievement by Metro. Because Metro receives this award after leaving many national and multinational brands behind. Last year Metro achieves 140% of its sales target, which is a proof of trust of large number of customers on Metro. This year up to now Metro achieves 60% of its targeted sales. While working in after sale & services department I come to know that that metro has zero claim for its engine and very less claims against other parts.3.6 SummaryIn this chapter I discussed that Metro was established in 1973 and started their business from fans and in 2003 diversified business in to motorbike industry. Metro Motorbikes Company is dealing in MR-70 and MR-125 and its business is spread all over the country. There are 13 departments at metro and head offices are at Lahore. Metro has its field office in major cities of the country to serve their large customer base with an ease. Currently Metro has very well educated and experienced staff and the working hours for the employees are 9 hours with a break of one hour. Metro give handsome salary packages to their employees and some annual rewards to employees as well. I also briefly discussed duties which I performed at Metro and also discussed performance of Metro organization in terms of customer satisfaction and on the basis of accounts as well. Morale of staff of Metro is high which is represented in recent achievements by Metro.Chapter 44.0 Introduction

This chapter includes some of the policies of Metro Motorbikes Company. Policies are set of processes that a company adopts to perform various functions. This chapter also includes some of the functions which are performed by various departments of Metro Motorbikes Company. At the end there is detail about some success stories of Metro Motorbikes Company which are achieved in recent years.4.1 Policies

To achieve annual objectives of an organization policies are formed. Policies are combination of some guidelines, rules and procedures. Policies are made for repetitive conditions and they help organizations to make decisions with an ease. Quality Policy. Warranty PolicyMetro Motorbikes Company also offers warranty for its motorbikes and a policy is also formed regarding warranty claims. Warranty policy is defined to check that whether its fault of company or its the fault of user of the bike. Warranty policy of Metro is Metro Hi tech (Pvt.) is trying its best to provide free of error motorbikes to the customers, but being a human there is possibility of any error. If there is error in the bike due to any workers fault, company will sort that problem out. But it is conditioned that motorbike is properly used and user take care of that motorbike up to required extent. Conditions for Warranty Warranty is given on every Metro motorbike for a specific time period and for a specific distance traveled by that particular motorbike which starts from the date of purchase of motorbike. Warranty automatically comes to an end if any of the given limits reached. It is required for normal customers to get benefit from the facility of warranty and get their motorbike first tuning from any nearest warranty dealer and get their motorbike second free tuning and checkup according to the schedule given by company. If there is an error in any Metro Motorbike, Metro Motorbikes Company is only responsible to change that part which is the reason for error. In that case company gives free services and free of cost product to the customer. But if the reason of error in the motorbike is it wrong usage than Metro Motorbike Company is not responsible to fulfill any claim. Motorbike which is out of order must be present at any nearest warranty center. It is required for all customers to read warranty policy carefully and sign on warranty card. Limitations of WarrantyAll of the claims which are made by customers are not entertained but there are some limitations for warranty. That warranty will not be valid under any of following conditions; All such kind of motorbikes which are not properly tuned and get their routine checkup according to the schedule given in the owners manual. All those motorbikes in which genuine Metro oil is not used. If some changes are made in motorbike or use some additional parts. If the motorbike is used in any kind of racing, rally or track racing. If there is an error in the layers of chromed or painted parts due to industrial pollution, dust, or moist. Any sound, vibration, or any leakage of oil which have no impact on performance of motorbike. If any error occurs in motorbike due to any non genuine parts, oil, and poor quality grease etc. All those errors which are occurred due to improper motorbike usage, oil changing on irregular basis, or due to usage of poor quality petrol and due to worse condition of road. All those motorbikes which are used for commercial purpose or use as a taxi. If a motorbike during warranty period is repaired from any workshop which is not authorized warranty dealer of Metro Motorbike Company.

All such motorbikes which are not used according to the way of use mentioned in owners manual. Error occurs due to rubbed chrome parts and painted parts.

Errors occur due to changing in electrical system or additional electrical load.

Errors occur due to any unauthenticated storage of motorbike for a long period of time.

All those errors which are not differentiated that whether it is material error or due to negligence of human being. Metro Motorbikes Company has the final decision to give a warranty claim and customer is unable to perform any legal proceedings against company. Company has the right to make some changes in warranty policy without giving any prior information.

Warranty periodWarranty periods are different for both of Metro MR-70 and MR-125 and they are; Metro MR-70For Metro MR-70 warranty period is 1 year from the date of purchase of that motorbike. During the warranty period of one year facility of unlimited mileage is also included.

Metro MR-125Warranty for Metro MR-125 is valid for 6 months and up to 6000kilometer. Warranty comes to end if any of both reached to their specified limits. 4.3 SuccessMetro by implementing various strategies gain a very well repute in the industry. Metro is committed to serve their valued customers by their quality products.

Metro is second largest motorbike manufacturers in the country.

Metro also achieve brand of the year award in 2010, which is very important success in the history of Metro. Metro achieve this award by leaving many national and multinational companies behind. In the recent years this award is hold consecutively by Atlas Honda. Metro is the only local organization which is doing business on credit basis.

Metro achieves 140% of its sales target in last year due to its customer oriented strategies.

Metro by focusing on intensive strategies introduce digital meter in the country for the first time.

Metro is running on its good will because they have marketing expenses up to negligible level. Unlike other motorbike manufacturers Metro has very low level of claims regarding major parts of motorbikes.

This year Metro achieves 60% of its sales target. 4.4 Summary

In this chapter I have discussed some of the policies of Metro Motorbikes Company. Through these policies Metro is progressing day by day and also mange some of its major issues like warranty. I have also discussed Metros success stories in recent years. These successes in Metro are only due to the strategies they applied in the organization.Chapter 5

Application of Models5.0 Half page introduction

In this chapter I will discuss Metro Motorbikes Company according to its external environment. This external environment is friendly in some cases with the organization and sometimes has very negative impacts on the organization. There are some strengths of the organization which help the organization to face some threats from external environment and through these strengths organization can also overcome some of the opportunities in the external environment. As the organization has some strength it also has some weaknesses too. On the other hand organization faces some threats from external environment. These threats may be in the form of political instability, economical instability etc. But it is the duty of management of the organization to determine any threat which organization is facing than took some steps to overcome those threats. 5.1 SWOT Analysis

SWOT is the analysis of organization in which internal environments like strengths and weaknesses are compared with external opportunities and threats. Through organizational strengths Metro can overcome the opportunities in the external environment and also can reduce external threats.

On the other hand organization can also overcome its weaknesses by the help of SWOT analysis. More the weaknesses are there in the organization the more the threats to the organization. So through this analysis organization come to know about its strengths, weaknesses opportunities and threats and by analyzing all this management can move organization in a position where the organization faces very few numbers of threats and have enough strength to overcome opportunities in the external environment. Strengths

Metro Motorbikes Company is ISO 9001:1994 certified organization, which is a strength for this company over many of its local competitors. Metro receives brand of the year award in 2010 which is Metros highest achievement in some recent years. Metro is providing new technology products in the market. Recently Metro introduce digital meter in Metro MR-70. Metro is has second highest market share of the industry. Metro is the only local organization dealing on cash basis. Metro has very powerful brand image due to its long history of serving the nation. Metro Motorbikes Company has well educated, professional and experienced staff members. Metro has extra ordinary sales revenue because they achieve 140% of targeted sales in recent year. Metro has very competent after sales services staff because they have direct contact with end customers and organization reputation depends on these frontline managers. Weaknesses Metro is not investing properly on marketing of its products. Metro is not properly giving rewards to the employees on some extra performance. Rewards must be in the shape of money. No proper check balance for employees of production department. Their supervisors are not performing their job up to standards. Marketing department is handling all of its activities from main office at Lahore. There is no marketing office at regional offices like AJK. Staff of some departments is though well experienced but they are not well educated. So they are not able to run with modern trends. Metro has very limited number of regional and field offices. So they might face hurdles to serve diverse customer base.Opportunities Through use of state of the art technology Metro can decrease its cost and increase its profits as well. Metro can attract more of potential customers by running marketing campaigns.Threats Entrance of new competitors in the industry is a major threat to Metro. Because with the entrance of every new competitors some of the potential or ex customers move toward that brand. If Govt. of Pakistan changes import policy, it is a major threat to Metro because Metro is importing some major parts of motorbikes form China. Prices of raw material are increasing day by day. In Metro decision making is very centralized, lower management have authority to take decisions up to negligible level. Increase in price of petroleum on rapid basis. Existing rivals to Metro like Atlas Honda, Yamaha, Sohrab, Ravi etc. are also a threat to Metro Motorbikes Company. Unemployment and inflation in the country reduces buying power of people. 5.2 PEST AnalysisPEST is the analysis of political, economical, social and technological factors which an organization is facing from its external environment. These forces have direct impact on the performance of organization.

These all can be benefits to an organization as well like if there is any change in above given forces which are organization friendly can lead organization to the path of success.

Political

Political factors have direct influence on an organization. Political instability in any country has direct impact on its industrial sector. When any new government/party is set to rule they introduce some tariffs which are in favor to them. These changes in policies on government level can affect a business to great extent.

Now a days terrorism is a major political drawback of the country. It is also a threat to any organization that they have to spend millions of rupees on their security purpose.

Energy crisis really ruin industries in Pakistan. There is shortfall of thousands of Megawatts shown in summer season and load shedding hours reach up to 16 to 18 hours a day. To use alternatives of energy like generators increase cost up to great extent. Now load shedding of Sui gas is also started which is also a threat for Metro because alternatives for these are much expensive. Metro purchase it engine of Motorbikes from China, any political instability or trade barriers can cause a real problem for Metro.

Economic factors

Economic factors have direct and immediate impact on any organization. Due to high rate of inflation in the country, prices of raw material increasing rapidly. Its hard for any organization to buy raw material at higher price and sell the finished goods at lower prices with quality assurance. Unemployment is also a major economic factor. Because of this evil buying power of public reduce to great extent.

Along with energy crisis prices of electricity and Sui gas are increased very much and cost of manufacturing a bike increased as well.

Social Factors

Organization only exists until people like its products or services. Social factors can influence any organization up to great extent. Now a days there is a demand of 70cc motorbikes because of its less petrol consuming function. Metro is making profits from MR-70.

On the other hand there is a segment of people who like heavy bikes, Metro needs to cater the need of that particular segment.

Technological Factors

Technological factors also influence a lot a business functions. As technological changes are occurring on rapid basis company has to adopt newest technology to remain in competition and sustain its competitive advantage. Metro is serving its customers with latest technological and quality products. Metros product development department is striving to introduce something new in market. Recently Metro introduces digital meter for Metro MR-70 which is competitive advantage of Metro Motorbikes Company. SummaryEnvironmental analysis of Metro is done in this chapter through two of these analytical tools SWOT and PEST. In both of these it is discussed that how external environment can affect the internal environment of the organization. It is also discusses that which are opportunities prevailing in the market and the strengths which organization is have to overcome those opportunities and also to reduce it weaknesses.

Chapter 6

Recommendations

After studying the whole organization I have some recommendations for Metro though Metro is experienced and leading organization in the industry but no one is perfect and process of improvement never comes to an end.

There must be a marketing department in all of the regional offices.

Metro Motorbikes Company also needs to invest on marketing purposes to compete properly. Because other companies like Honda Yamaha are running marketing campaigns for their product through various media. While working as an internee in production department I observe that employees are not working properly which causes wastage of time. So it is recommended to the organization there must a strict eye on the working of employees to reduce wastage of time. A proper system for training and development system should be

As Metro Motorbikes Company is second largest organization in Motorbikes industry it is highly recommended to Metro to increase the numbers of regional areas to target more number of customers with an ease. There is centralization in decision making in Metro Motorbikes Company so decision making must be decentralized in the organization. Political

Social

Economical

Organization

Technological

5Master of Business Administration