Professional Documents
Culture Documents
Akbar Motars
Akbar Motars
Ayaz family was originally from Jhang and was well known in the business community in textile and
plastic manufacturing industry. Akbar sold his manufacturing industries due to his inability to arrange
interest-free financing, and joined the spare parts business. Akbar Motors became family oriented
business in early the Akbar’s Nephew Zia run the Akbar motors business later on he left Akbar motors
and his own sons became Director in both shops after Zia left business. His both branches catered for
new and used car sales, in addition to spare parts. They were considering opening branches in other
suburbs of Lahore. There was a tendency in Lahore, for markets of certain items to develop within
specific areas. It usually started with a few successful businesses dealing with a certain item and then
others followed by opening stores in the same vicinity.
PROBLEMS IDENTIFICATION:
Poor structure problems
Poor decision without any consultation
New business without any experience
Instability
Interest free financing
Same activities at both of the shops
Both brother are director of small business
Unrelated expense
Selling problems by salesman of Akbar during in sales
Errors occur during the checking of bin numbers in present system
Concentration on expanding the business rather than sales
Improper hierarchy
Salesman sales part lower then cost price
Only salesman check bin and commit miner errors
Salesman made slight errors in judgment of spare parts order
Salesman less look over some parts not order them at all
High prize of computer system and inventory software
Ayaz was computer oriented and he only focus on computer technology
Gather information on computerization
Ayaz was a fresh graduate and don’t have enough experience in related business
3 full time purchase agents
1
Quantitative Analyses
Year Quantity Value
(In books of kegs) (Rs in millions)
1979-80 5711 274.565
1980-81 4154 308.618
1981-82 16.570 319.212
1982-83 8657 410.211
1983-84 8424 408.663
Due to the growth in the number of automobile in Pakistan, the spare parts market had recorded
vigorous expansion within a couple of decades. According to the federal bureau of statistics the number
of automobile in Pakistan had grown at a rate of 10% per annum during the period 1975-1985. Imports
of spare parts increased from Rs. 275 million in 1979/80 to Rs. 410 million in 1982/^; while falling
slightly to Rs. 409 million in 1983/84.
To maintain customer confidence, Akbar motors had hired three full-time purchasing agents whose only
duty was to ride their motorbikes to get an out-of-stock part when needed from Montgomery road. In
this manner the ‘carder system’ proved to be useful as a check on the sales people. Any missing part
would readily show at the time of quantity checks.
2
Qualitative Analyses
The identification of problem was poor they have facing different problems but they were focusing on
inventory system. Akbar took decision alone of selling his manufacturing industry without consulting
with any skillful person. When he start business cars were few in use of general people. His decision of
selling business was poor and quick. He was new at business and don’t have related experience. He was
thinking of opening new branches in suburbs of Lahore but he didn’t focus on the running shops. The
distance between both shops were 10-15mins. Both shops have same nature of business and both
covers the same area of customers. They were facing selling problems; Salesman sometime sells parts
lower than the cost price. Salesman check bin which led him to slight errors in judgment of order.
Sometimes he order more than requirement of stock.