Professional Documents
Culture Documents
Internship Report
Internship Report
Submitted By:
Zahid Bilal
BAF-09-44
Department of commerce
BZU, Multan.
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Preface
I am heartily thankful to my teacher and Pepsi management whose encouragement, guidance and
support from the initial to the final level enabled me to develop an understanding of the
internship and in writing the report about my internship from I have learn a lot because it is a
demonstration of my ability in research, analysis, and effectiveness of expression. After writing
this report ideally adds to the store of human knowledge and serves as a contribution to future
researchers.
I am really thankful to Mr. Asif Bukhari and Mr. Javed Iqbal who have so much
coordinated with me and gave me advices about career planning. I am also very thankful to Mr.
Usman Butt, Mr. Tahir Ameen, Mr. Afzal, and Mr. Khuram Shehzad who gave me very valuable
knowledge about the workings in their respective departments.
Last but not least, all admirations for my parents without them I will be nothing.
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Table of Content
preface.........................................................................................................................................................2
Acknowledgements.....................................................................................................................................3
Executive summery 6
History of Pepsi Cola...................................................................................................................................7
Organizational structure.............................................................................................................................10
Mission Statement..12
Objective13
My own activities...13
- Finance Department..........................................................................................................................13
Life insurance...................................................................................................................................15
General insurance.............................................................................................................................15
Supply chain..........................................................................................................................................16
-Supplier....................................................................................................................................................17
- Audit department..18
- Accounts coordination department 18
- Management Department..................................................................................................................19
HRM department.......................................................................................................................................20
Process of Recruitment and Selection Chart..............................................................................................21
-Financial Analysis....................................................................................................................................23
Liquidity Ratios............................................................................................................................23
Current Ratios...............................................................................................................................23
Profitability Ratio......................................................................................................................................25
PESTEL Analysis......................................................................................................................................30
SWOT Analysis.........................................................................................................................................32
Competitors...............................................................................................................................................33
Market Share.............................................................................................................................................33
Suggestions................................................................................................................................................34
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EXECUTIVE SUMMARY
This report contains my learning during my internship in Pepsi (Shamim & Co. (Pvt.)
Ltd). Shamim & Co. is a franchise of PepsiCo International, in Multan and covering almost area
from Okara to Rahim Yar Khan. Shamim & Co. have number of departments including HR,
Marketing & Sales, Accounting & Finance, Production, Shipping & Logistics, MIS
(Management Information system), IT, Insurance and Banking.
In this report I also brief functions of different departments through which I have gone
through and afterwards I have also mention, what I gain in every department. After departments
overview I jot down the points of SWOT analysis and PEST Analysis. In the last suggestion
which I thought that are good for the Shamim & Co. are given and then conclusion.
Whole report is basically my learning on how to manage the work, decision making,
leadership techniques, teamwork, and management of the organization.
HISTORY OF PEPSI COLA:
Pepsi cola started in the January 1898, from a small drug store in the city of North
Carolina. The owner of the Drug store Mr. Caleb Bradham prepared a drink, which the customer
called the Bred Drink. Bred registered this drink, with the name of Pepsi cola in 1903. Then he
started his own production at Marco level and establishes his own company. The business
expanded and this drink got fame time. In 1909 this company reached to 24 states of America
with more than 250 dealers. The very first packing of Pepsi was in 16.5 ounce.
In 1932 Pepsi cola has introduced its new packing in 12 ounce. In 1950 Pepsi cola started has its
new Advertising Campaign with the name of Refresh without Filling. It also changed the
chemical formula and decreased its sweetness and calories.
With the effort of the Sales & Marketing Department, Pepsi got so much fame that it established
new plants at a rate of thirty per annum. In 1985 the design of the bottle has been changed after
20 years and a new and attractive packaging has been offered with two new flavors i.e. Teem &
Mirinda.
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HISTORY OF PEPSI COLA IN PAKISTAN:
Pepsi cola is being produced and consumed 1n 48 countries of world including Pakistan.
At present, Pepsi Cola is No. 1 in Pakistan in terms of sales wise and in market share. In Pakistan
pepsi Cola is the market leader. But overall in the world Coca-Cola is No. 1.
In Pakistan, there are nine territories where the franchised unit produce and sell Pepsi-Cola.
Some of these territories are:
1. Lahore
2. Karachi
3. Rawalpindi
4. Peshawar
5. Multan
6. Gujranwala
7. Sakhar
8. Faisalabad
9. Baluchistan
INTRODUCTION TO SHAMIM & CO. (PVT) LTD MULTAN:
Shamim & company (Pvt.) Ltd. is a franchise of Pepsi Cola International. The company
established in 1964. Mr. Allah Nawaz Khan Tareen was the founder 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 famous Beverage Company of South Asia.
There are 9 franchise of Pepsi cola international in Pakistan, Shamim & co. is one of them that is
situated at District jail road Multan. Other franchise of Pepsi cola are situated in Lahore,
Faisalabad, Karachi, Islamabad/Rawalpindi, Gujranwala, Sakhar, Peshawar and Baluchistan that
are describe above. The company was started 1st production in 1967 that time brand was 7-up
270ml that is why it is also known as 7-up factory. It is deal in CSD (carbonated Soft Drinks).
Pepsi cola international franchise Shamim & company covering 18 districts & 135 stations.
Shamim & Co. Multan has very committed staff and this is the reason that it captures more than
85% share of market share. Company has now serviced new experienced & competent sales staff
& increases this share to 90% and above.
As the distribution channel is conserved company has a very well-establish distribution network
covering whole of the franchise areas.
Depending on the potential of the town we have one and more than one distribution in each
town. Sales supervisor, sales officer is responsible for all the activities of the entire distributor.
Salesman training is also a main responsibility of sales supervisor.
Company has invested too much money in shape of coolers, counters and cabins.
These are offered to those shops which are producing good sales to promote sales.
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All the services matters of coolers and maintenance and look after of these assets are also the
responsibility of our sales force.
Every salesman the distribution network is covering a specified area in which all the points and
shops are listed in a Route Card salesman is bound to fill that.
Route card with the sales figures of every point on that specified day.
ORGANIZATIONAL STRUCTURE :
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DEPARTMENTS OF SHAMIM & CO. (PVT) LTD MULTAN:
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MISSION OF COMPANY:
OBJECTIVES :
The company operates through well experienced, loyal and hardworking employees. The first
and the most basic plan it to train them according to the changing technology and computerized
environment, and satisfying their needs and requirements. Upgrading the plant structure and
installation of the new machinery are other plans. The company is planning to increase its sales
force and development in its infrastructure in the coming time period.
MY OWN ACTIVITIES :
FINANCE DEPARTMENT:
Finance department deals with the money and how it is used. The main objectives of the Finance
department are to manage the cash flows and how to generate the finance. Mr. Asif ali Bukhari
is the head of the finance department. Mr Asif says that Finance considers the relationship of
money to time and risk. One of the main subordinate of finance is the study of credit and
banking, as this involves money, time, and risk all together. Finance also deals with the personal
or corporate issues, like how will an individual or a company acquires the money needed to
perform a certain act.
OPERATIONS:
Department of banking and finance involves in different type of operations
Short term financing
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Long term financing
Letter of credit.
Short term
Cash finance is a type of short term financing. Running finance and working finance
are also involves in short term financing.
Long term
Leasing and term financing are dealing in long term. Two parties are involved i.e. lease
(to take) and leaser (to give). Two types of leasing
Operating leasing
Financial leasing
In operating lease the ownership title is renewed mean after maturity the ownership is
not converted.
In financial leasing case the ownership title is converted mean at the end of maturity
ownership is converted.
In Pepsi all the activities are on financial leasing.
How to make the schedule?
Date, installments, markup rate, principal and ending principal are important.
Principal portion and markup portion make the rent.
Securities, pledge and collateral terms are used in leasing.
Lease schedule should be per day, monthly and quarterly basis.
On the size of the company the terms and conditions are varying for approving the
lease e.g. Pepsi have more than 1000 million for approving the lease.
Insurance mean to secure the assets. In Shamim and Co, there are two types of insurance
1- Life insurance
2- General insurance
LIFE INSURANCE
- To claim on death.
- Co. did not responsible on health causes.
Employee name, father name, date of birth and designation are filed. Checked these details
and send to state life. State life proofed all information and gives the claim amount. Claim is
renewal after 365 days.
- Group insurance policy having the information like NIC, death certificate, physicians claim
form about outgoing and new employees and give it to the state life(bank).
Pepsi cola mentioned 2 categories A & B. In A category, guards, supervisor, line manager
etc. are here and their premium is less. In B category, executives, middle and generals
managers here. Their premium is high.
GENERAL INSURANCE
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- Production and sale
- forecasting on previous basis
- Current conditions
The output supplies are linked with sales and marketing
In Shamim and Co. basic dealing in supply chain is raw material i.e.
- Crown corks
- Caps (liter, pet)
- Carbon dioxide gas
- Chemicals
For packaging
- Pet bottles
- Pet packing material
- Label
- Glue
Supply chain department maintain the documents:
- Goods receivable notes
- Invoice
- Online payment receipt
- Quality certificate
- Payments receipt
- Purchase order
SUPPLIERS:
The main suppliers for different materials are
Material Supplier
AUDIT DEPARTMENT :
The head of audit department is Mr. Javiad Iqbal sahib. The Basic purpose of this department is
is to verify the glass of 250ml and 1,000ml.
It prepares five different types of reports.
Shipping report:
- In shipping report all the details about empty stock (bottles), filled stocks that are takes and
given by the distributers.
- Production report:
It prepares at the time of production process.
EB4:
- In EB4 report all empty bottles are filled and available in EB4 (excise before duty). There is
no charge the duty when stock in factory.
- DPG:
After paying the duty the stock is stored in warehouses of Pepsi like DPG1, DPG2 and
DPG3. And RGI is a running godown.
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Distribution Load:
This report is prepared when the stock is loaded for the distribution.
Mr.Khuram sahab is the head of Accounts co-ordination department. This department works on
purchasing the goods, making the bills and payments. All the claims are in written form. Fuels,
daily allowance and phone expense allowances are the main payments. They make the purchase
order and check that the goods are received then approve the cash bill for payments.
The main purpose of this department is to make the budget. Because it having all the information
about income and expenses of the company. Budget is very important for controlling the
expenses of company. For this purpose minimize the expenses as department wise.
Tahir Ameen sahab is the managing director as well as the head of the management department.
The main purpose of this department is that to see the operations of the company. They make the
reports of all activities like
- Production report
- Amanat comparison report
- Raw material report
- High and low fill losses
- Daily co2 consumption report
- Useable caps status report
All the brands like 7up, pepsi, marinda, dew and sting all are dealing in standard (regular)
i.e. converted in 250ml.
Management department prepares more than 50 repots per day to manage all the operations
performed in the organization.
HRM DEPARTMENT :
HRM is a bridge between employee and employer. Basic purpose is to co-ordination. The
main functions are given below
Recruitment is the process of finding and attracting capable applicants to apply for
employment. Although operating managers are often involved much of the recruitment
responsibility is of the professionals in the HR department, these professionals are called
recruiters. Recruiters should be aware of the constraints and challenges surrounding the
recruitment process before they attempt to find suitable applicants.
Once new recruits are hired, they must be given adequate training and orientation, so that they
have ample knowledge about their respective commitments. Mr.Taahir sahib and Afzal sahib are
the head of this department.
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PROCESS OF RECRUITMENT AND SELECTION CHART:
CV acceptance Qualification
Demand generation
By respective dept Experience
3rd Interview 2nd Interview 1st Interview
A yearly training program is devised, which is mandatory for all sales personnel. This is done to
develop the employee abilities to
(a) Manage them
(b) Work with others
(c) Lead others.
Few of the salespeople were also exposed to overseas training and 10 of then were sent on
international assignments for developing their skills and experience.
Incentives and gain sharing are compensation approaches that reward specified outcomes.
Incentives usually link individual performance and rewards, whereas gain sharing unusually
embraces groups of employees.
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FINANCIAL ANALYSIS:
I was provided with some financial data of Pepsi (Shamim & Company Private Limited)
and with the help of that financial data I have been able to analyze the financial condition of
Pepsi (Shamim & Company) in terms of ratios. These ratios are as follows:
LIQUIDITY RATIOS
WORKING CAPITAL:
Working capital compares current assets to current liabilities, and serves as the liquid reserve
available to satisfy contingencies and uncertainties . Working capital is an indication of the
short run solvency of business.
= Current Assets - Current Liabilities
17441 - 18154
= (713)
CURRENT RATIO:
It provides an indication of the liquidity of the business by comparing the amount of current
assets to current liabilities. This ratio measures the short-term debt-paying ability of the
company.
= Current Assets
Current Liabilities
= 17441
18154
= 0.96
This ratio is showing that the companys short term debt paying ability is not so good, as its
current assets proportion to current liabilities is low, which is resulting in very low ratio as
compared to the standard ratio of 2.
AVERAGE AGE OF INVENTORY:
It measures how quickly the inventory of company liquidates.
= Average Inventory
CGS/365
= (3372+3877)/2
31953/365
= 41.4
This ratio is showing that the companys inventory is liquidating or converting into sales in 41
days.
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= 36.31
This ratio is showing that the liquidity of companys receivables is 36 days i.e. the amount of
receivables is collected within 36 days.
PROFITABILITY RATIOS
= Net Income
Net Sales
= 6462
66504
= 0.097
This ratio is showing that the companys efficiency is enough to continue the business as its net
profit margin is 9% of its net sales.
= Gross Profit
Net Sales
= 9633
66504
= 0.14
This ratio is showing that the proportion of gross profit to net sales is 14% which might be good
or not according to the trends of industry ratios. The ratio showing that the companys efficiency
is enough to continue the business as its net profit margin is 14% of its net sales.
RETURN ON ASSETS:
The Return on Assets of a company determines its ability to utilize the Assets employed in the
company efficiently and effectively to earn a good return. The ratio measures the percentage of
profits earned per dollar of Asset and thus is a measure of efficiency of the company in
generating profits on its Assets.
= Net Income
Average Total Assets
= 6462
(68153+72882)/2
= 0.09
This ratio is depicting that companys net income is .09 times of its total assets i.e. 9% profit is
generated by its total assets.
RETURN ON INVESTMENT:
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= Net Income
Long-term Liability + Total Equity
= 6462
20568+20899
= 0.15
The ROI ratio is showing that the companys invested capital is generating 15% profit.
RETURN ON EQUITY:
Measures the income earned on the shareholder's investment in the business. The Return on
Equity of a company measures the ability of the management of the company to generate
adequate returns for the capital invested by the owners of a company. Generally a return of 10%
would be desirable to provide dividends to owners and have funds for future growth of the
company.
= Net Income
Equity
= 6462
20899
= 0.30
This ratio is good enough to pay out handsome dividends as 30% profit is generated by capital
invested by the owners of the company.
It provides information about the company's ability to absorb asset reductions arising from losses
without jeopardizing the interest of creditors.
= Total Liabilities
Total Assets
= 51983
72882
= 0.71
This ratio is showing that in proportion to total assets, 71% is coming from creditors.
DEBT TO EQUITY:
Indicates how well creditors are protected in case of the company's insolvency. This ratio
indicates the extent to which debt is covered by shareholders funds. It reflects the relative
position of the equity holders and the lenders and indicates the companys policy on the mix of
capital funds.
= Total Debt
Total Equity
= 51983
20899
= 2.48
This ratio is showing that the companys total debt is 2.48 times of its total equity which is
reflecting that creditors are protected enough by the shareholders funds in case of insolvency.
It indicates a company's capacity to meet interest payments. Uses EBIT (Earnings Before Interest
and Taxes)
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= EBIT
Interest Expense
= 9690
856
= 11.32
This ratio is showing that the companys earnings before interest and taxes is 11.32 times of its
interest expenses so it has enough capability to meet its interest expenses.
CASH TURNOVER:
= Net Sales
Cash
= 66504
4067
= 16.35
This ratio is depicting that the utilization of cash is effective as it is generating 16.3 times net
sales.
PESTEL ANALYSIS:
POLITICAL FACTOR
In Asia and especially in Pakistan where the political environment is not stable no Government
has completed its tenure except the last 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.
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 problem due to which rural customers are not able to differentiate
between PEPSI and Coke and etc.
Employment opportunities will be higher.
Increasing demand of PEPSI requires establishment of new production plants.
Combined pricing decisions with mutual agreement between PEPSI and Coke.
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SOCIAL FACTORS
The social factors of each society and culture are different from each other so these also
influence the industries as well.
Now it has become a trend that soft drink should be served in almost every gathering.
Fast food popularity among teenagers has led to the increase in demand of PEPSI.
Social welfare program is also active at PEPSI for example PEPSI donated 1 million Rs.
For helping recent earth quake victims.
They have been sponsoring different cricket events and Pakistan cricket team for almost
10 to15 years.
TECHNOLOGICAL FACTORS
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 AM.
SWOT ANALYSIS
STRENGTHS
Quality in terms of product service
Quality of people (trained, motivated, committed)
Better sales planning
Vital role in economic development
High profit rate
Rapidly increasing market share
Strong image of PEPSI in consumers mind
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In time service of supplies and technical assistance
More installation of post mix machine
Strong financial position
Rapidly increasing market share
WEAKNESSES
Poor feedback from employees
Insufficient salaries
Monopoly of distributors cause harm to company
No advertisement budgets for post mix.
No signages of post mix in the market
No promotional activities in post mix.
No availability of spare parts.
OPPORTUNITIES
New style management
New brand introduction
Low cost skilled person availability
Opening of new outlets
Strong consumer commitment with Pepsi.
THREATS
Coca- Cola is on its way to get market share
Amrat and Makka cola also trying to get market share
Changes in consumer purchasing power
Increase in competition
Inflation
Due to blame of religious group
No proper employees orientation programs
COMPETITORS
The major competitors Pepsi Cola are Coca Cola and RC Cola. Both of these are making
little or no effort to put Pepsi down because they have accumulative share of only 20% in
market. On the other hand Pepsi Cola is advertising and promoting their product so heavily that
they have almost finished name of their competitors in the market.
MARKET SHARE
Pepsi hold 50-60% of the market share. The rest is held by RC and Coca Cola.
Pepsi Cola 50-60%
Coke & RC 40-50%
Others 2.0-3%
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SUGGESTIONS: