Shamim & Co. Final Report

INTERNSHIP REPORT
ON
Shamim & Company ( Pvt) Ltd Multan
Submitted to: Management Science Faculty

Submitted By: SYED SAJJAD RAZA
Roll No. 2117
BBA (HONS.)
DEPARTMENT OF MANAGEMENT SCIENCES

NATIONAL UNIVERSITY OF MODERN LANGUAGES
Shamim & Co. (Pvt) Ltd., Multan
PREFACE
Assignments, Term reports and Internship programs are the vital teaching techniques of
National University of Modern Languages, BBA (Hons.) program. The aim of such
activities is to develop a practical evaluation approach in students along with their studies.
As an integral part of BBA (hons.) studies, every student has to undergo an internship
program in a reputed institution to observe daily life business practices and problems in
business life.
In order to fulfill this purpose department assigned me internship of Shamim & Company
(Pvt) Ltd Multan being the private largest private Company and franchisee of Pepsi cola
international.
I have tried my best to make this report comprehensive to provide information about the
strategic and functional areas of Shamim & Company (Pvt) Limited.
Syed Sajjad Raza
2
Dedication
All My Words Dedicated with Respect, Reverence Love and Affection to My Loving
Parents who taught and hold my hands on several occasions and help me to reach this
stage.
Acknowledgement
3
I pay special thanks to ALLAH Almighty who bestowed me the opportunity, courage and
confidence to obtain more knowledge to complete my internship program, which will
facilitate me greatly in my intellectual development and skills capitalization.
I would like to submit my deepest gratitude to my parents, whose prayers always

supported in every task of my life and my teachers, who really guided me to enhance my
learning in Shamim & Co. (Pvt) Ltd Multan.
To accomplish whatever I have done in my internship, there were many people

along the way who have been responsible for guiding me, advising me, encouraging me.
To them, I am deeply grateful and would like to take this opportunity to offer my heartfelt
appreciation.
Table of Contents:
Acknowledgement 04
4
EXECUTIVE SUMMARY 06
Introduction OF PEPSI CO. International 07
Vision Statement 08
Mission Statement 09
PepsiCo in Pakistan 10
Introduction to Shamim & Co. (Pvt) Ltd Multan 17
Company Profile 18
Organizational Structure 20
MANAGEMENT OF SHAMIM AND COMPANY 21
SHAMIM & CO. OBJECTIVE 22
Departments 22
INTERNSHIP PROGRAM 23
MARKETING MIX 36
Financial Analysis 37
PESTEL FRAMEWORKS 44
SWOT ANALYSIS 47
Suggestions 51
Comments 52
Balance Sheet 53
Income Statement 54
Internship Letter 55
5
EXECUTIVE SUMMARY
Shamim & Co. Multan is working in beverages business (PEPSI cola) under a franchise
setup since 1963. PEPSI Multan is currently having 80% market share in Multan and the
share is still rising. Pepsi Multan has not the certified ISO Company because there is no
export of Pepsi drink; it is an international drink encloses their standards.
The Pepsi-cola is the market leader in the Pakistan as well as in the Asia but Coca Cola is
the market leader in the whole world. These industries develop their own marketing
policy to meet the necessities of their respective target market. As for as the Shamim &
Co. beverage in Multan is concerned, it creates its control in its target market, which is
based on Multan, Rahim Yar Kahn and the sub areas of these cities. Shamim & Co.
beverage successfully complete the obligation of its target market. Shamim & Co.
beverages think important departmentalization in their office works and therefore they set
up different department to achieve their particular tasks. There are different departments
in the Shamim & Co. beverages like human resource department, management
information system department, finance department, internal and external audit
department, sales & marketing department and shipping department.
Introduction OF PEPSI CO. International
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Mr. Caleb Bradham is the owner of a ting drug store in of North Carolina City In
January 1898, which was the starting period of Pepsi-cola. The Drug store owner
created a drink, which is call "the Bred Drink". In 1903 Bred index the name drink
Pepsi. At Marco level he ongoing his own produced and build his own organization.
The trade extended and this drink achieved appreciation time. This company appears at
24 states of America with more than 250 dealers in 1909. First time Pepsi packed in
16.5 ounce packing size. Pepsi-cola has launched its new filler in 12 ounce in 1932.
New promotion struggle is started with the name of "Refresh without Filling" in 1950
by Pepsi-cola. The chemical formula also changed which caused to decrease its
sweetness and calories. Pepsi acquired so much celebrity that it established new plants
at a rate of thirty per annum with the hard working of the Sales & Marketing
Department. In 1985 the design of the bottle has been changed after 20 years. And a
new and eye-catching packaging has been presented with two new flavors i.e., Teem &
Miranda. Pepsi is accessible now in more than 160 countries of the world including
Soviet Union & China..
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Vision
The vision statement is we were number one, and we will be number one. Their
collective success depends on their healthy balance strategies the organizations needs
and the needs of their employees and their families
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Mission Statement
To be the world's premier consumer Products Company focused on convenient foods
and beverages. We seek to produce healthy financial rewards to investors as we provide
opportunities for growth and enrichment to our employees, our business partners and
the communities in which we operate, and in everything we do, we strive for honesty,
fairness and integrity.
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PepsiCo in Pakistan
Pepsi-cola market share is about 75% in the soft-drink market in Pakistan because it is
very traditional. Pepsi-cola International, a significant name in the cola trade is doing its
business in Pakistan through franchising. PCI has industrial following bottlers in Pakistan
till now. Shamim and Co Company is the largest producer and distributor of Pepsi Cola
soft drinks in Pakistan.
These franchises are situated in:
Karachi
Lahore
Multan
Sukkhar
Gujranwala
Faisalabad
Peshawar
Islamabad
Hyderabad
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Current Product Portfolio of Pepsi Co. in Pakistan Market:
Currently PepsiCo is offering following products & brands in Pakistan market:
In the 1950s one of the most potent business community of Pakistan, brimming with
the spirit of Independence from the late 1940s, decided to launch a local brand of
beverages. Pakistan Beverage Limited created the brand Pakola which is still holding
on its unique equity with the Pakistanis within and outside the country. The Plant was
situated in a 1,000 square yard area in the hub of Karachi industrial area.
With the booming success of their brand and their well known reputation of
enterprising marketing and trade penetration, Pakistan Beverage Limited easily
became the target of many a multinational companies who were interested in seeding
their beverage businesses in this new land of tremendous opportunity driven by its
demographics. In 1979 Pepsi Cola International offered the Pepsi Franchise to
Pakistan Beverage Limited, the then Bottlers of Pakola Brands of Beverage in
different flavors.
Within five years of acquiring the Pepsi Franchise, Pakistan Beverage Limited
succeeded in replicating its previous business successes in the beverage market by
becoming the market leader in Soft Drinks in Karachi and then later in Hyderabad.
The dynamic partnership which was created in 1979 between Pakistan Beverage
Limited and Pepsi Cola International, indeed, is a force to reckon with in the market
which stands true till this day.
This great success gradually trickled down to other cities of Pakistan in the south and
the North, over a period of time, making Pepsi and its brands the most popular drink
in the country.
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Today, with almost 60 acres of accumulative area under manufacturing and

warehousing, Pakistan Beverage Limited is one of the most well equipped and well
managed Pepsi Cola Bottling Plant among all Pepsi franchises across the country.
Pakistan Beverage Limited currently consists of 5 manufacturing sites which includes
the Karachi Site, Yasir Fruit Juice, Hyderabad Plant, Quetta Plant and the Aquafina
site.
The Company has made tremendous progress under the dynamic leadership of its
Chief Executive/Managing Director Mr. Yasin Kassam Teli, his younger brother Mr.
Siraj Kassam Teli and his son Mr. Zaid Yasin. Not only did they make
advancements in leaps and bounds with respect to latest equipment installation, but
also got gelled together a blend of diverse group of highly qualified professionals to
run and manage the ever so growing business.
Pakistan Beverage Limiteds Karachi plant has four (4) state of the art bottling lines
and one (1) canning line which are all producing various brands and flavors of
Carbonated Soft Drinks, namely Pepsi, Mirinda, Mountain Dew, Diet Pepsi, 7 Up and
7up Free. The company also has another renowned PepsiCo brand of drinking bottled
water under the brand name of Aquafina which is produced at a plant located on super
highway and is PSQCA certified. Through its subsidiary company, M/s Yassir juice
Limited, it is manufacturing juice under brand name Slice in PET,GLASS and Tetra
packs.
With the vision of becoming the largest branded beverage manufacturing and selling
company, Pakistan Beverage Limited is marching ahead and continues to provide
superior quality beverages to the consumers with a quality backup service to the
customers in the market place.
Pakistan Beverage Limited, through another Group Company, M/s Pakola Products
Limited, also produces plain & flavored milk in Tetra Pack at its plant on Super
Highway. It is market leader in flavored milk with a wide range of different flavored.
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Name and picture of product as follows :
Pepsi
7Up
Mirinda
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Mountain Dew
sting
Lays
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Chettos
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Introduction to Shamim & Co. (Pvt) Ltd Multan
Shamim & company (Pvt.) Ltd. is a franchise of Pepsi Cola International. The
company has established in 1964. Mr. Allah Nawaz Khan Tareen was the inventor of
the company and also chairman. It is a great pleasure of Shamim & Company that it
was Second Beverage Company of Pakistan that time, and this time one of celebrated
Beverage Company of South Asia.
Pepsi Multan was incorporated in 1963 but it in progress its manufacture in 1967. At that
time Pepsi Multan was having only 1 production plant made by Netherlands. At the start
Pepsi Multan was only manufacture 7-Up because it was the only brand produced by
Parent Company. In 1973, parent company got hold of PEPSI so the Multan franchise
started producing PEPSI and Marinda along with 7-Up.
Coke was already in service in the market at the time when Pepsi Multan well-known. At
that time Coke was market leader but with the passage of time Pepsi Multan reserved on
focusing on gaining the market share. Recently Pepsi has launched a new brand with the
name of Mountain Dew. Now Pepsi Multan is working with eight production plants
capable of producing more than 200,000 crates per day. The plant which was installed at
ht e time of establishment has now been grounded. Pepsi Multan is at present market
leader with more than 75% of market shares.
The Area allotted to Multan Franchise. The franchise area consists of the following
districts.
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Multan
Muzafar Garrah
D.G Khan
Bahawalpur
Lodhran
Bahwalnagar
Sahiwal
Pakpattan
Rahim Yar Khan
Khanewal & Vehari
Company Profile
Shamim & Co was established in 1967 under a franchise agreement with 7-UP to bottle
7-Up Soft Drinks. During 1973 Shamim & Co. Pepsi Cola Multan going ahead bottle
Pepsi cola as well. This was the first Pepsi franchise in Pakistan.
Since 1967 we have run to grow rapidly and grasp an authoritative market share which
has made us one of the prime minister bottling companies in the region. Our products are
manufactured under strict quality control and conform to international quality standards
set by Pepsi co. We have an all-embracing network of Distributors and well-trained sales
staff to market and distribute our products in whole of the southern Punjab, a territory
that covers almost 150,000 Sq.k.m. we provide a population of over twenty million
people through more then 22000 outlets out of which 14,000 are exclusively Pepsi cola
sellers. We supply a complete business package to our retailers including horizontal and
vertical bottle coolers, point of purchase advertising, cash credit, etc.
Shamim & Co. Pepsi Cola Multan is now enjoying above 75% market share in the
franchise which is the highest for any Pepsi Cola Franchise in the world. We were
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declared Bottler of the Year in the region for outstanding performance. We plan to
continue with our business traditions in the future.
Address
Pepsi Shamim & Company (Pvt) Ltd
Factory District jail Road Multan
Tel :( 061) 4515037
Fax :( 061) 4586644
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Organizational Structure
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MANAGEMENT OF SHAMIM AND COMPANY
MANAGING DIRECTOR (OWNER) MR. ALAMGIR KHAN TAREEN
GENERAL MANAGER MR.AMIR HAMEED
SALES CAPABILITY MANAGER MR MIRZA JAVED
PLANT MANAGER MR ANWAR SHAHID
HUMAN RESOURCE MANAGER MR M AFZAL
MARKETING & SERVICES MANAGER MR.MUBASHER GHAYOOR
KEY ACCOUNTS MANGER MR IRFAN SHAHZAD BUTT
MIS MANAGER MR: KAMRAN AHMED
AUDIT MANAGER MR.MALIK HAMEED
FINANCE MANAGER MR. ABID HUSSAIN
QUALITY CONTROL MANAGER MR.AFTAB TASSADUQE
RSM MULTAN MR: HAROON NAZEER
SALES OPERATIONAL MANAGER MR: KAMRAN ZAFAR
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SHAMIM & CO. OBJECTIVE
The key objective of the company is to make up and distribute of peak level quality,
which verify to both the national and international quality stands. The company is
committing to provide maximum level of client satisfaction.
Departments
1. Administration Department
2. Production Department
3. MIS department
4. SIS Department
5. Finance & Accounts
6. Cash Department
7. Human Resource Department
8. Sales & Marketing Department.
9. Operations Department
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INTERNSHIP PROGRAM
FIELDS OF ACTIVITIES
Shamim and Co Bottling Company is the franchise of Pepsi Cola International. It performs all
the functions throughout its different types of department, only company receives Concentrate
(basic formula) from Pepsi cola international and all other activities are performed by the
company itself.
Through my 6 week internship program, I was motivated through following departments:
A. HRM Department
B. Internal Audit department
C. Finance (Banking) department
D. Insurance department
E. Account & Coordination department
F. Accounts Management department
G. Marketing & Sales department
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A.HRM DEPARTMENT
Recruitment Procedure:
i. Main sources of potential job candidates are

a. Paper Adds
b. Internal Search Advertisement
c. Employees Referrals (Permanent Employees of SCL)
d. Managers Recommendations
ii. The candidates are selected on the basis of

a. Interview by HR Manger
b. Interview by Concerned Department Head
c. Final Interview by MD/Director
This is for few selected persons in Shamim and co training is generally on the job
employees in all departments are bearing by the time or with the help of seniors.
session.
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My Activities
I worked with Mr. Afzal in this department. He helped me out to learn, how they select
and hire new employees. I also learnt how they are managing all departments. And I work
in employee selection process and also involve in test and interview
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B. INT
ERNAL AUDIT DEPARTMENT
The department work for reconciliation of filled stock and as well as empty stock, shells,
pallets etc. In other words compare actual to theoretical position.
In this department different types of reports are prepare:
i. Useable Glass movement report
ii. Production empty at factory
iii. Useable Glass summary report

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iv. Daily cash receipt and payment report
v. Overall glass report
vi. Stock placement report
vii. Daily plastic shells position report
viii. Plastic shell losses report
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How to identify the bottle:

For example: L12209085311B6EM (bottle code)
L is code of Pakistans franchisee

13 Years
98 number of day of year
0853 Time
1 figure shows the shift number
1 the plant number
B6 Shift in charge code
E chemist code
M shows that the bottle manufactured in
Multan
My activities
I worked with Mr. Junaid Shah &Mr. Imran in this department. They helped me out to
learn, how they prepared different types of reports and how these reports help out for
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decision making. I also get knowledge that how they are organizing Audit process, and
field work.
C.FINANCE (BANKING) DEPARTMENT
The finance department is major department in any organization; it deals with banking as
we know that all export import is impossible without the help of bank and it is a big
source for short and long term loaning.
The banking or finance department of SCL is also has importance for SCL, the SCL
works with MCB, UBL and SCB etc. As its balance shows the debt to equity ratio is only
1.3 app. So the bank has more important source for SCL.
The Finance (Banking) department activities are:
i. Arrangement of long term loan
ii. Arrangement of short term loan
iii. Arrangement of letter of creditor (L.C)
iv. Provide useful finical information to company for decision making
i. Arrangement of long term loan

There are different source of long term loan for company but which is commonly used in
SCL is Lease. The lease is an agreement for future payments series in the return of assets
that is used by any body now. The two types of lease exit one is operating lease and
second is financial lease. Operating lease is an agreement in which at maturity the
ownership is not transfer to leasee and asset return to leasor. The SCL vehicles are leased
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normally under this type of argument. While the financial lease deals with an
arrangement in which at maturity the ownership is transfer to leasee. Financial lease is
further divide into two other types: 1) Direct lease 2) Sale and lease back.
In first type financial lease the leasor invest total investment for Asset on the behalf of
lease and in Sale and lease back asset is sale by leasee to leasor and then an agreement is
made of lease and after a maturity the ownership is transfer to leasee. The plant and
heavy machinery of SCL is leased by this type of lease.
ii. Arrangement of short term loan

There are many source of short term loan like as pledge, mortgage & loan from investors,
which is commonly used in SCL is first two that is pledge and mortgage.
The pledge is on moveable goods/things while the mortgage 0n immo0veable things like
as land building etc
iii. Arrangement of letter of creditor (L.C)

The basic purpose of L.C is reducing risk and deals on behalf of banks include out of city
or out of country, L.C is also called DDA (document delivery against acceptance). Two
type of L.C is work out 1) sight 2) ursine
The first type of L.C when present in bank the amount of L.C cut off from account of
customer the second type of L.C is present in bank the bank made payment of behalf of
customer and collect payment after certain period.
Document required for L.C is following:
a. Performa invoice
b. Insurance
c. L.C opening form
d. Request on company legal document

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e. I form (In case import)
iv. Provide useful finical information to company for

decision making
The provide report to upper management about the resource of finance and current rate of
interest in capital market for decision making purpose and get information from bank for
future purpose which is very helpful in decision making.
My activities
I worked with Mr. Asif Ali in this department. He helped me out to learn, how they select
source of loan. I also I also get knowledge how they are preparing different types of
document. I work in department and see the document of pledge &mortgage
D.INSURANCE DEPARTMENT
This department links with insurance the basic purpose of this department is make
possible that every thing company is insured including employee, machines, buildings,
plants, vehicles and even Gown den with stock limit. There is two type of insurance made
in SCL:
i. Life group insurance
ii. General insurance
i. Life group insurance

Work for employee insurance in case of death or any injury of any employee during job
this can be claimed. The document required for claim:
a. Insurance policy
b. I.D card
c. Death certificate
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d. Physician report
ii. General insurance

Work for stock, machine and all type of assets insurance, can be claimed in any type of
accident.
My activities
I worked in insurance department. Although it is small department but has its own
importance, I learnt Process of insurance and claim. I also get knowledge that how they
are organizing all departments and DPGs for insurance.
E.ACCOUNT & COORDINATION DEPARTMENT
It facilitates sales, production, finance, shipping & sales information system (SIS)
department in processing their transaction in accounts department
Responsibilities of Account & Coordination department:
i. To maintain complete record of bills received and payment received.
ii. To make payment on base of urgencies and priorities
iii. Verification of completeness and correctness of document received
iv. Collection of cash voucher, payment, pay order, cheques and demand draft from
accounts department and to handover person employees or supplier
v. General manger finance keep eve on all process
vi. Account & Coordination department resolves all queries, problem and issues
related to department
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vii. All departments coordinates employees and supplier contacts account coordination
information regarding their payment
viii. Account & Coordination act as cell centre for suppliers and employees from
remote areas
ix. Account & Coordination department prepare daily payment reports of payment
made to the suppliers and employees separately.
x. Account & Coordination department maintain records of budgets of all

departments except admin
My activities
I worked with Mr. Khurram in this department. He helped me out to learn, how they for
budget preparation. I also get knowledge that how they are organizing budgets for all
departments. And I work in department for approvals of payments.
F. ACCOUNTS MANAGEMENT DEPARTMENT
The purpose of this department is to generate the reports for high level management for
decision making purpose. The time factor is important factor in this department, so that it
is busy department of SCL. Different types of reports are prepared in this department,
i. Raw martial shift wise yield report.
ii. Co2 consumption & inventory management report
iii. Daily production losses report
iv. Sugar procurement summary report
v. Glass and plastic shells order in process

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vi. Extra Labor cost report
The three types of survey are also happens there:
Content survey
DPG survey
Syrup room survey
My activities
I worked with Mr. Umer &Mr. Touqir in this department. They helped me out to learn,
how they prepared different types of reports and how these reports help out for decision
making. I also get knowledge that how they are organizing all departments cost. And I
learn the process of survey.
SALE & MARKETING DEPARTMENT
Sale and Marketing is the significant department of any beverage company. To enhance
the revenue and income, this department should be properly planed and managed.
Shamim and Co PVT has a very hard line and painstaking sales and marketing
department. Due to its efforts the company has got the first position in 1993 throughout
the Pakistan.
OBJECTIVE OF MARKETIND DEPARTMENT
I. Add to brand consciousness and loyalty along with the target audience through
best possible use of resources.
II. To improve the marketing share by improving visibility
III. To improve the BTL planning and effecting(Budget signage quality)
IV. To retain market leadership

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V. To create improvement store branding and merchandising activities
VI. To Facilitate sales by truthful and comeback
Marketing Operation
I. Marketing strategy
II. BTL budget planning and execution
III. Merchandising and staff management
I. BTL Execution and planning

a) Central workshop (base)
b) BTL execution process
c) Existing vendor setup
d) Budget planning
II. Marketing strategy

a) Customary the strategy in which type of market come in and increase the
market share.
b) Use best way of promotion and awareness to customer about brands or
products.
c) Make strategy to increase sales of the company
Subsequent are the major contents of this department
a) Market Development
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b) Outlet
c) Tactical analysis and routine planning of market strategies.
d) Competition activity monitoring
e) Publicity Management
f) Publicity Verification
My activities
I work in marketing and sales department for one week. Here Mr. Mubashir & Mr Kashif
are Our controller, and they were very accommodating with us. It is satisfied to see that
the automation in the marketing department in respect of the guidebook work is going
into the DBMS , And we deals with to outside vendors of the company for the marketing
of the company that was our major assignment in our internship period according to our
specialization
MARKETING MIX
The job of creating, promoting and deliver goods and services to consumers in the
businesses is called Marketing. Associations identify and outline separate group of
purchasers who power to prefer or require changeable products and marketing mixes. The
customer always desires satisfaction. The organizations can boost the worth of the
customer offering in a number of ways e.g. raising compensation, sinking costs etc.
marketing mix is a set of marketing deal with that the firm uses to follow its marketing
objectives in the target market. These marketing tools are known as 4 ps of marketing.
These four marketing tools are viewed as 4cs by the consumers.
4 Ps 4Cs
Product / Services Customer Solution
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Price Customer Cost
Place Convenience
Promotions Communication
To categorize the client needs and satisfying them is the basic intention of an
organization. Shamim and Co Bottling Company provides a winning mixture of products
and services to its prime customers. PepsiCo is one of the world leading companies,
which ensures complete security, and dependability in all transactions.
FINANCIAL ANALYSIS
1. LIQUIDITY RATIOS:
These ratios are important in measuring the ability of a company to meet both its short
term and long term obligations.
WORKING CAPITAL:
Working capital is an indication of the short run solvency of business
Working Capital = C.A C.L.
Year 2009 2010 2011 2012 2013

CA 343179640 390387892 468465470 562158564 674590277
CL 280253635 326286103 375229018 431513371 496240376
Working Capital 62926005 64101789 93236452 130645193 178349901
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CURRENT RATIOS:
This ratio measures the short-term debt-paying ability of the company
C. A
Current Ratio = C. L
Years 2009 2010 2011 2012 2013

CA 343179640 390387892 468465470 562158564 674590277
CL 280253635 326286103 375229018 431513371 496240376

Current
1.2 1.2 1.25 1.30 1.36
Ratio
ACID- TEST RATIO:
This ratio is like the current ratio but excludes current assets such as inventories and
prepaid expenses that may be difficult to quickly convert into cash.
Quick Ratio=Quick Assets / Current Liabilities
Years 2009 2010 2011 2012 2013

CA 42218250 49449960 57856450 67692050 79876619
CL 280253635 326286103 375229018 431513371 496240376
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Q
Ratio 0.15064301 0.151554 0.1541897 0.15687127 0.16096356
2. DEBT MANAGEMENT:
This is the most common measure of the ability of a firms operations to provide
protection to the long-term creditor.
TIME INTEREST EARNED:
TIE = EBIT /INTEREST EXPENSE
YEAR 2009 2010 2011 2012 2013

EBIT 13130022 15544100 18432038 21643604 25539453
Interest
Exp 1644312 1061878 1536003 1812483 2138730
TIE 8 15 12 11 12
DEBT RATIOS:
This relation measures what share of a companys assets is add up by creditors.
DEBT RATIO: TD / TA
YEAR 2009 2010 2011 2012 2013

TD 281275235 327307703 376403858 432864437 497794102
TA 385165619 439795604 527754820 633305785 759966942
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Debt
Ratio 73% 74% 71% 68% 65%
D/E RATIO:
This relation shows the degree to which debt is enclosed by shareholders funds. It
reflects the qualified position of the equity holders and the lenders and indicates the
companys policy on the mix of capital funds.
D/E = TD / TE
YEAR 2009 2010 2011 2012 2013

TD 281275235 327307703 376403858 432864437 497794102
CE 103890384 112487901 151350962 200441348 262172840
D/E 2.71 2.9 2.5 2.2 1.9
3. ASSET MANAGEMETNT:
These relations are significant in measuring the effectiveness of a company
DAYS SALES IN RECEIVABLE:
It shows both the typical time takes to turn the receivables into money and the period, in
terms of days, of a company's accounts receivable
Gross Re ceivables
Days sales in receivable = Net Sales / 365
YEAR 2009 2010 2012 2012 2013
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A/R 16881442 15527617 20156759 23180273 26657334

Sales 849952926 885258201 1062309841 1274771809 1529726171
DSO 7 6 7 7 6
PROFITABILITY RATIOS:
It shows how doing well a company in consideration of generating income or earnings on

the Investment that it has made in the business. If a trade is liquid and efficient it should
also be Profitable. Ability to provide sufficient financial rewards for attracts and retains
financing.
A)RETURN ON EQUITY (ROE):
It measures the expertise of the management of the organization to generate sufficient

profits for the investment invested by the owners of a company. Normally a return of
10% would be attractive to provide dividends to owners and have finances for future
development of the company
R.O.E = N.I / C.E
YEAR 2009 2010 2011 2012 2013

NI 11485710 14482222 18102777 22628471 28285589
CE 103890384 112487901 151350962 200441348 262172840
ROE 11% 13% 12% 11% 11%
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B) RETURN ON ASSETS:
The ability to operate the Assets working in the company proficiently and successfully to
earn a good return by a ratio called Return on Assets. The relation find out the percentage
of income earned per dollar of Asset and thus is a find out of effectiveness of the
company in produce profits on its Assets.
R.O.A= N.I / TA
YEAR 2009 2010 2011 2012 2013

NI 11485710 14482222 18102777 22628471 28285589
TA 385165619 439795604 527754820 633305785 759966942
ROA 3% 3.30% 3.40% 3.60% 4%
C)NET PROFIT MARGIN:
There is a method to determines endure struggle and unfavorable situation like going up
costs, declining prices or decrease in sales in the future by the Profit Margin ability of a
company. The relation finds out the percentage of earnings produce per dollar of sales
and therefore it is calculate of effectiveness of the organizations.
N.P.M = NI /SALE
41
Years 2009 2010 2011 2012 2013

NI 11485710 14482222 18102777 22628471 28285589
Sales 849952926 885258201 1062309841 1274771809 1529726171
NPM 1.35% 1.64% 1.70% 1.80% 1.85%
PESTEL FRAMEWORKS
1. POLITICAL FACTOR
In Asia and especially in Pakistan where the political situation is not stable no
Government has completed its possession and the politics also a great influencer on the
different industries of the country. Now following are the effects on the beverages
industry.
The govt. decides that what will be the rates of sales tax
The rates of main operating variables inputs such as the Electricity are also
decided by the govt.
2. ECONOMICAL FACTORS
The country like Pakistan whose economy is not strong enough is affected by so many
economic variables which are the following.
Low literacy rate is a trouble due to which rural customers are not able to
distinguish between PEPSI and Coke and etc.
42
Employment opportunities will be higher.

Increasing demand of PEPSI requires institution of new production plants.
Combined pricing decisions with mutual agreement between PEPSI and Coke.
3. SOCIAL FACTORS
The social factors of each society and culture are different from each other so these also
control the industries as well.
Now it has become a tendency that soft drink should be served in almost every
meeting.
Fast food reputation among teenagers has led to the increase in demand of PEPSI.
Social interests program is also active at PEPSI for example PEPSI donated 1
million Rs. For helping recent earth quake victims.
They have been supporter different cricket events and Pakistan cricket team for
almost 8 to10 years.
4. TECHNOLOGICAL FACTORS
Today is the era of Technology whether it is Information Technology or Production

Technology so the PEPSI is also affected by these. Following are some of these.
Previously there were separate production plants for the production of specific
brand size.
43
Now they have installed a new production plant which is capable of producing
different brand sizes at the same time.
The plant has been grounded now which is putting in place at the time of project.
The sixth production plant which is currently being installed is the latest one
imported from Germany.
There is no institute in Pakistan providing engineering training regarding
beverages production plants so PEPSI people have to arrange onsite training for its
maintenance engineers to learn working with latest technology plants
There is very limited automation to keep production record. Most of the record is
maintained manually but currently they are trying to shift towards fully automated
production control system.
5. ENVIRONMENTAL FACTORS
They are having an ammonia plant installed within the residential area of Multan
so they have to follow environment safety laws imposed by govt.
As they are having no solid waste but they have to make special drainage
arrangements for the disposal of water used to wash empty bottles before filling
them.
LEGAL FACTORS
As there is no concept of profit repatriation so the govt. involvement in profit

distribution is nil.
Laws regarding working condition, working hours and child labor are also
enforced by govt.
Because of their location in residential and urban area they are not able to perform
loading and unloading of trucks in day time because trucks cant enter in urban
areas in day time. So they can only load and unload trucks between 10 PM to 6
44
SWOT ANALYSIS
1. STRENGTHS
High brand image and customer loyalty

Pepsi is currently the market leader with more than 80% of market share
Effective and efficient management of distribution channel allows Pepsi Multan to
cover a huge geographical area.
On site training of 4 to 6 months enables plant engineers to manage plant
operations effectively so that machine downtime is reduced to minimal.
Pepsi provides its own transport to distributors to cover those geographical areas
where competitors are not distributing their products because of difficulties to
reach there.
Strong coordination between different departments
Strong distribution network
Strong sales & marketing department
They have their own R&D department which is responsible for conducting market
research
Their plants are capable of producing round the clock.
45
They offer attractive margins to the distributors, so distributors are willing to carry
PEPSI brands
They provide direct delivery on CSD department.
They offer attractive margins to the distributors, so distributors are willing to carry
PEPSI brands
2. WEAKNESSES
Supply Gap stock is not provide on the time

Poor feed back from employees
There is bad act due to law that is cargo of trucks can acquire put only in the night
as of the law allow trucks to go through into township only in the darkness.
The location of factory is in the housing region with no appropriate parking
provision for its automobiles.
Communication can only take place in a formal communication path which leads
to delay in decision making.
No involvement of lower level subordinates in decision making.
Record keeping is mostly done manually.
3. OPPORTUNITIES
Provide awareness to customer on time to time

Due to high customer loyalty and brand image new product can grow consumer
favorite extremely shortly.
The high market growth opportunity exit.
46
They are planning for new production plant which will increase production
capacity.
Expanding markets through its strong advertisement
Training of sales officer and salesman
There is high market growth opportunity
4. THREATS
There is a continuous threat from Coca Cola and other new entrants.
Empty glass bottles can be used by other parties to sell their drinks in PEPSI
bottles.
Low graded PEPSI is also available in the market.
Increase in competition
Coca- Cola is on its way to get market share
Competitor Analysis
1. Coca-Cola was created in 1886 in Georgia, while Pepsi was created in 1893 in North
Carolina.
2. Pepsi is sweeter than coke, despite what labels on the bottles say about its sugar
percentage.
3. Coke has a vanillan chemical, which gives it a vanilla taste, while Pepsi has a more
citrus flavor.
47
4. Pepsi is less carbonized than Coke, because it contains less CO2. Which means that
Coca-Cola drinks are more fizzy than Pepsi ones.
5. In order to compete with Coca-Cola, Pepsi created a new formula for their Pepsi
Challenge. It was a successful move, since people preferred the distinguishable citrus
taste of the less carbonated drink.
6. Coke has a larger salt percentage than Pepsi. While in a 240 ml serving Pepsi contains
20mg sodium, Coke contains 33mg.
7. Pepsi contains more caffeine than Coca-Cola. So, if youre looking for something to
drink when you need a little bit more energy, you might find Pepsi more appropriate.
Gourmet cola Vs Pepsi
1. Gourmet is local brand of Pakistan while Pepsi is international brand.
2. Gourmet is popular in only Punjab province but Pepsi is popular in whole world.
3. Gourmet cannot give franchise while Pepsi have strong franchise system.
4. Pepsi use cricket celebrity for advertisement but Gourmet could not.
48
SUGGESTIONS
The access of all departments must have proper greeting to deal the guests.
The facility of Internet must be making available for every worker in Finance and
Management department.
One time meat (i.e. Lunch) must be for employees at no cost.
The arrangements of canteen must be appropriate about the hygiene of food
preparation.
Accounts coordination department ought to be fair swab properly.
The all Steps are supposed to be ensuring cleanliness in all departments. The
decoration of every department must be exit.
HR Department task should be enhanced and its role should be enlarged to all
main departments.
The facility of Transport should be making available for workers. It works as a
enthusiasm instrument and will make sure in time existence of workers in
appreciated departments.
The culture about internship must be developed suitable and appropriate
arrangements about internees must be developed so that internees can get
appropriate knowledge about approximately every section in the firm.
49
For increasing motivation of employees, give them incentive on basis of

performance.
COMMENTS
All departments have very good working atmosphere.

SCL have responsible and very hard working staff.
There is high-quality inter associations among workers. Workforce is very
gracious to each other.
The available resources are used properly by all departments.
There is good power, to manage, organize and exchange a few words with its
team, every departments manager has. They have well prepared their particular
zone.
50
51
Pepsi Shamim & Company (Pvt) Ltd, Multan

Balance Sheet
For the period ending on 30 June, 2013
2009(audited) 2010(audited) 2011(audited) 2012(audited) 2013(semi
Annually)
Current Assets:
Cash & Cash Equivalents 9589803 10269719 29026515 34831818 41798182
Accounts & Notes Receivable, Net 16881442 15527617 20156759 23180273 26657334
Inventories 316708395 364590556 419282196 504146472 606134761
Total Current Assets 343179640 390387892 468465470 562158564 674590277
Property, Plant & Equipment, Net 28983089 33967862 40441500 52286500 62545440
Goodwill 100000 100000 100000 100000 100000
Vehicles etc 12673990 15104160 18387160 18395031 22340036
other Assets 228900 235690 360690 365690 391189
Total Assets 385165619 439795604 527754820 633305785 759966942
Current Liabilities:
Short-term Obligations 238172564 269523256 317130132 362713961 419017087
Accounts Payable & Other Current 39209644 53142292 53573192 63142292 70151892
Liabilities
Income Taxes and markup Payable 2871428 3620556 4525694 5657118 7071397
Total Current Liabilities 280253635 326286103 375229018 431513371 496240376
Long-term Debt Obligations 1021600 1021600 1174840 1351066 1553726
Total Liabilities 281275235 327307703 376403858 432864437 497794102
Total equity 103890384 112487901 151350962 200441348 262172840
Total Liabilities & Equity 385165619 439795604 527754820 633305785 759966942
52
Pepsi Shamim & Company (Pvt) Ltd, Multan
Income Statement
53
For the period ending on 30 June, 2013
2009 2010 2011 2012 2013

Sales 849952926 885258201 1062309841 1274771809 1529726171
Less: Cost of sales 501472226 522302339 626762806 752115367 902538441
Gross profit 348480700 362955862 435547035 522656442 627187730
Less: Admin exp. 83837670 86852941 104278749 125253210 150412069
Less: Selling and Marketing expenses 184442873 191076469 250268998 290587446 330906552
Less: General and Other expenses 67070136 69482352 62567250 85172182 120329655
EBIT 13130022 15544100 18432038 21643604 25539453
Add: Other income 0 0 1206742 2797350 4884866
NET PROFIT BEFORE TAXATION 13130022 15544100 19638780 24440954 30424319
Less: Provision for taxation 1644312 1061878 1536003 1812483 2138730
NET PROFIT AFTER TAXATION 11485710 14482222 18102777 22628471 28285589
54
Internship Letter
55

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INTERNSHIP REPORT

Submitted to: Management Science Faculty

DEPARTMENT OF MANAGEMENT SCIENCES

Syed Sajjad Raza

I would like to submit my deepest gratitude to my parents, whose prayers always

To accomplish whatever I have done in my internship, there were many people

Introduction OF PEPSI CO. International

Soviet Union & China..

and the needs of their employees and their families

To be the world's premier consumer Products Company focused on convenient foods

and beverages. We seek to produce healthy financial rewards to investors as we provide

fairness and integrity.

Current Product Portfolio of Pepsi Co. in Pakistan Market:

Currently PepsiCo is offering following products & brands in Pakistan market:

Today, with almost 60 acres of accumulative area under manufacturing and

Name and picture of product as follows :

Introduction to Shamim & Co. (Pvt) Ltd Multan

Pepsi Shamim & Company (Pvt) Ltd

Factory District jail Road Multan

Tel :( 061) 4515037

Fax :( 061) 4586644

MANAGEMENT OF SHAMIM AND COMPANY

MANAGING DIRECTOR (OWNER) MR. ALAMGIR KHAN TAREEN

GENERAL MANAGER MR.AMIR HAMEED

SALES CAPABILITY MANAGER MR MIRZA JAVED

PLANT MANAGER MR ANWAR SHAHID

HUMAN RESOURCE MANAGER MR M AFZAL

MARKETING & SERVICES MANAGER MR.MUBASHER GHAYOOR

KEY ACCOUNTS MANGER MR IRFAN SHAHZAD BUTT

MIS MANAGER MR: KAMRAN AHMED

AUDIT MANAGER MR.MALIK HAMEED

FINANCE MANAGER MR. ABID HUSSAIN

QUALITY CONTROL MANAGER MR.AFTAB TASSADUQE

RSM MULTAN MR: HAROON NAZEER

SALES OPERATIONAL MANAGER MR: KAMRAN ZAFAR

SHAMIM & CO. OBJECTIVE

5. Finance & Accounts

7. Human Resource Department

8. Sales & Marketing Department.

Through my 6 week internship program, I was motivated through following departments:

B. Internal Audit department

C. Finance (Banking) department

E. Account & Coordination department

F. Accounts Management department

G. Marketing & Sales department

i. Main sources of potential job candidates are

b. Internal Search Advertisement

c. Employees Referrals (Permanent Employees of SCL)

ii. The candidates are selected on the basis of

b. Interview by Concerned Department Head

c. Final Interview by MD/Director

In this department different types of reports are prepare:

i. Useable Glass movement report

ii. Production empty at factory

iii. Useable Glass summary report

iv. Daily cash receipt and payment report

v. Overall glass report

vi. Stock placement report

vii. Daily plastic shells position report

viii. Plastic shell losses report

How to identify the bottle:

L is code of Pakistans franchisee

C.FINANCE (BANKING) DEPARTMENT

Shamim & Co. Final Report

Shamim & Co. Final Report