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Rohi Motorcycle (RI 70 and 100) Is The Product of Rehman Auto Industry. 1
Rohi Motorcycle (RI 70 and 100) Is The Product of Rehman Auto Industry. 1
INTERNSHIP REPORT
ON
REHMAN AUTO INDUSTRY BAHAWALPUR
Submitted to
By
Majid Ali
BBA (Evening)
The Islamia University of Bahawalpur
2014-18
DESCRIPTION Page #
EXECTIVE SUMMARY___________________________________5
ACKNOWLEDGEMENT__________________________________6
DEDICATIONS_________________________________________7
INTRODUCTION_______________________________________8
ORGANTIZATION BACKGROUND________________________ 9
Organization information_______________________________10
VISION OF RAI________________________________________11
GOALS OF RAI________________________________________13
COMPANY POLICY_____________________________________14
COMPETITIVE ANALYSIS________________________________19
PROMOTION___________________________________________23
DISTRIBUTION__________________________________________25
SWOT ANALYSIS________________________________________27
BCG MATRIX___________________________________________32
DEPARTMENTS_________________________________________33
FINANCIAL ANALYSIS____________________________________60
CONCLUSION____________________________________________74
REFERENCES ___________________________________________ 75
EXECUTIVE SUMMARY
As I have completed my internship of Six weeks periods in the Rehman Auto Industry.
I have compiled a report about the organization which comprise the history, departments
(i.e. Finance, Departments) my experiences and duties performed in the organization
during my period of stay.
A brief description of the history of the organization is provided to get an overview of the
organization. And also a brief history of the Auto Business of organization. The hierarchy
and the way of functioning of the organization is also included in the report to get an
overview of the different functions being performed in the organization at different levels
of Hierarchy. The Assembling process, geographic location and distribution of the
organization are described in the report. The business volume and financial analysis of
the organization are also a part of the report to get an overview of the organizations
performance over the years.
The Human Resource pol RAI_70 and strategies are also described to provide
information about the planning, selection, recruitment, compensation, rewards etc
provided to the employees in the organization.
There is a brief introduction of the Marketing Department and the duties performed by it
in the organization as well.
The SWOT of the organization is also a vital part of the report which gives a clear view
of the internal and external environment of the organizations with respect to the
competitors in the market.
In the last it contains all the duties and projects performed by me in the organization
during my period stay. The data of the project as well as my learning’s in the
organization is also included in the report.
ACKNOWLEDGMENT
A pessimist sees the difficulty in every opportunity; an every optimist sees the
opportunity in every difficulty. I deem it an honor to pray and pay thanks to Almighty
Allah who has gradually bestowed us with the ability to think, read, write, compose and
assimilate the gathered wisdom and knowledge and to complete this internship report in a
logical and presentable form.
I would also like to thank the entire Rehman Auto Industry for the support and guidance
provided to me during the internship programmers. Specially my Finance Department
Employees who help me in order to know the basic requirement of my internship. Lastly
I would like to utilize to for guiding me and helping me in the successful completion of
my 5 weeks internship.
DEDICATIONS
Holy Prophet
Muhammad (PBUH)
My Parents.
&
My Brother.
I
N
T
R
O
D
U
C
T
I
O
N Auto Industry
8-Km.Hasil pur road
Bahawal pur.
ORGANIZATION BACKGROUND
Parts are the basic in any unit; thus, it was started from the basics. In 1
Years only, the trademark “ROHI MOTOR’s” was very much known in
genuine market, which shows the QUALITY and its economical standard.
The REHMAN AUTO INDUSTRY believes to Produce best quality
motorcycles in the market rather than to maximize their profits.
RAI-70is the only well established motorcycle Company in the Bahawal pur
city which facilitate the local people to work with them and increase their
living standereds.
Organization information:
DIRECTORS:
Mr.Zahoor Hussain Dharala Mr. glulam Yaseen
BANKERS:
VSION OF RAI
Habib Bank Limited Allied bank Limited
AUDITOR:
Hameed Chaudhri & Company .Chartered Accountants
Phones: 062-2005602
Fax: 062-2050927
E.MAIL: Asif_Cmc2018@hotmail.com
Rehman auto Industry, being Chines, always believe in quality leadership customer
satisfaction and satisfaction of Owners. The executives and managers at RAI are keen
about the staff cooperation and dedication. That’s why promoting teamwork culture is the
core activity of the Organization. The vision of RAI as follows:
production.”.
MISSION STATMENT
Mission Statement, the statement that further reveals the practicalities of any
organization, comparable to its vision statement. MISSION STATEMENT
GOALS OF RAI
STRATEGIC PLANNING
dealers to ensure that the customer enjoy the highest level of satisfaction from use of
QUALITY
To ensure that our product and service meet the set standards of excellence.
LOCAL MANUFACTURING
To be the industry leader in indigenous of motorcycle parts.
TECHNOLOGY
To develop and maintain distinct business advantage through continuous induction of
improved hard and soft technology.
EMPLOYEE
To enhance and continuously update each member’s capabilities and education and to
provide an environment to encourage practical expressions of individual potential in goal
directed team efforts and compensate them attractively, according to their abilities and
performance.
MARKETING MIX
PRODUCT
Rehman Auto Industry basic products
REHMAN AUTO INDUSTRY RI 70 and 100 cc
This is the four stroke motorcycles. Both the products have a good repute in the market
and that is the reason that REHMAN AUTO INDUSTRY has approximately 20% market
share now a days. The basic reason of the success is the quality maintained by the
company throughout its career. The models of REHMAN AUTO INDUSTRY are being
manufactured in Sadiqabad . Plant has a capacity to produce 250 motorcycles per day,
but still the market demand is not being fulfilled.
In order to increase market share marketing department perform following activities
New model
Changes in design
COMPETITIVE
ANALYSIS.
Rohi RAI 70
United US-70
Ravi RA-70
Star DS-70
Lifan 70cc
Unique UD-70cc
Hero RF-70cc
Level of Competition:
Generic competition
Industry competition
Brand competition
Honda70, Hero, Ravi, Star etc
Market Based
Full campaign promotion of RIE-70
Value Creation
Customer segmentation
Male ------Female
Age above 18 Years
Income group above Rs.20000
Rs.15000 – Rs.19000
Rs.10000 – Rs.14000
Market selection
Male
age above 18 Years
Quality Based
Product development
Raw material
Engine are import from China.
Machinery & Installation: In BAWAL PUR.
Services development
A regular skill development program for engineers and other support staff is implemented
through local and foreign training courses.
The various activities performed at RAI, After Sales & Services department are listed
below:
Recreational Activities
Factory Visits
Training & also new model training.
PRICE
Meaning of Price:
Price is the amount of money and/or other items with utility needed to acquire a product.
Promotion mix is
Advertisement
Sales promotion
Personal selling
ADVERTISEMENT
RAI-70uses the print media as well as electronic media for advertisement. In print media
the company gives advertisements in newspapers and it also uses billboards on the road
side for the promotion of the product.
SALES PROMOTION
RAI-70also promotes its product through different sales promotional activities.
Company sponsors different functions and activities in main cities.
Company provides rewards and incentives to their dealers on achieving targets.
Company send their successful dealers to different trips all over the world.
PERSONAL SELLING
The company does personal selling as well, not to individuals but to institutional
customers.
RAI-70gained good market share due to its strong distribution network. For distribution
RAI-70has divided the whole country into two regions.
1. South region
2. North region
SOUTH REGION
It includes following territories
Karachi
Sukkur
Quetta
(This covers whole Baluchistan province)
NORTH REGION
It includes following three territories
Multan
(Its includes all lower Punjab cities)
Lahore
(It covers cities from upper Punjab)
Rawalpindi
(It covers Islamabad and NWFP.)
“5S” DEALERS
This is a new emerging trend set by REHMAN AUTOS. Now days the company is
emphasizing on “5S” facilities to their customers through “5S dealers”.
5s stands for the following five facilities
1. Sale
2. Service
3. Spare parts
4. Special sale
5. Second hand sales
SALE
It SWOT ANALYSIS includes only the sale
of new motorcycles.
SERVICE
It includes after sale service to the customers like Warranty claims, Tuning of
motorcycles, Repair of motorcycles etc.
SPAREPARTS
Company provides spare parts facility to their customer
.
SPECIAL SALE
It deals with the credit facility. In special sale, the dealer provides the customer with
credit facility at his own behalf. RAI-70does not provide any support for credit sale.
STRENGTHS
QUALITY PRODUCT
RAI-70. has quality products, which is one of its major strengths.
GOOD IMAGE
Company has a good and favorable image in the market and in the mind of
customers.
EXCELLENT SERVICES
Company provides excellent services (after sales services) to its customers.
FINANCIAL STRENGTH
RAI-70. is financially strong company which is its another strength.
COMMITTED EMPLOYEES
Company has committed and devoted employees that are loyal to the company,
which is another strength of the company.
AVAILABILITY OF PARTS
The Spare Parts OF the motorcycles are easily available all over the country
which is another strength of the company.
MARKET RESEARCH
Company has a sophisticated market research system. With the help of this
system company is able to get knowledge about competitors activities and market trends.
INNOVATIVE CULTURE
The culture of the company is very rich which is supportive for employees to
innovate new ways to improve the things.
LOCALIZATION
Till now company is in a position to localize its productions up to 89%. Almost
89% of parts to be used in production are in house.
WEAKNESSES
HIGH PRICE
OPPORTUNITIES
“5S” CONCEPT
New concept of “5S” is an opportunity for company to develop. With this new
concept company has introduced two new “S” other than sales, spare parts and service.
These are special sales and second hand sale. According to this new idea dealers will help
The customers to replace their second hand motorcycle with new one and customers can
get motorcycle on credit as well.
Pakistan. According to this rule, within few years only that motorcycle company will be
able to sell their brands which will localize its production at a rate of 5% to 10 % each
year. RAI-70has localized its production up to 89% till now. So the company is leading
the industry in this regard. This is an opportunity for company as it has more government
THREATS
Finance
Quality control department
Information technology
Marketing
FINANCE
FINANCE:___________________________________________
Finance
General ledger
Costing
Taxation
Sales
Payables
Payroll
COSTING
It is an important section of finance department, which deals with all costing
matters including all material, labor, and overhead costs.
TAXATION
It deals with all tax and custom duty related affairs.
PAYABLES
This section deals with the following activities.
Vender payables
Utility payables
Insurance payables
Tax payables
Club payments
Other payable
PAYROLLS
This section controls the salary system of the organization. All the system is
computerized. First of all the attendance of all employees is recorded and at the end of
the month salary of all employees are paid after all deductions*
Tax deductions, absenteeism deductions and all other deductions
GENERAL LEDGER
Finally all the transactions are recorded in general ledgers. General ledger for each
account is maintained separately. There is a computerized system, which then produce
different statements.
Mr.Zahid Farooq
We fully concentrate on our quality because we are offering quality to our customers. We
have Quality Control department which is equipped according to the requirement of
PSQCA and EDBP. All the parts are checked by the Quality Control equipment in all the
process of manufacturing in our plant.
REHMAN AUTO INDUSTRY has a sophisticated IT system. All the departments are
finance department have different soft wares to support their work. All these soft wares
have been developed by company’s own IT department. Mostly soft wares are developed
VISION STATEMENT
OF IT MARKETING DEPTT
DEPARTMENT
I.T Department is dedicated to provide reliable information base using most modern
technology to potential users at all levels. Our professionals individually and collectively,
will constantly improve their competitive skills and excel in providing quality service
covering all the aspects of the technology.
By embarking into the digital age we will accelerate the positive effects and mitigate the
challenges as knowledge grows when shared.
FINANCIAL ANALYSIS
OF REHMAN AUTO INDUSTRY
SALE
It is an important division of marketing department. It is the profit centre of the
company. It deals with three types of sales.
INDIVIDUAL SALE
This is the usual sale to the individuals. This usually follows the following path.
Company Dealer Customer
SERVICE
The second major section of the marketing department is service section. The service
section deals with
service dealers
Warranty and training centre.
SPARE PARTS
This is another important division of the marketing department. Basically company
doesn’t consider it as profit center rather a supportive section to produce better customer
service. It has separate distribution system and different parts dealers in different regions
FINANCIAL RATIOS
Financial statements have two major uses in financial analysis .first, they are used to
present a historical recover of the firm’s financial development. Second, they are used for
a course of action for the firm. A performance financial statement is prepared for a future
period. It is the financial manager’s estimate of the firm’s future performance. The
operation and performance of a business depends on many individuals are collective
decisions that are continually made by its management team. Every one of these
decisions ultimately causes a financial impact, for better or works on the condition and
the periodic results of the business. In essence, the process of managing involves a series
of economic choices that activates moments of financial resources connected with the
business.
Some of the decisions made by management one will be the major, such as investment in
a new facility, raising large amounts of debts or adding a new line of products or services.
Most other decisions are part of the day to day process in which every functional area of
the business is managed. The combine of effect of all decisions can be observed
periodically when the performance of the business is judged through various financial
statements and special analysis.
Liquidity ratios
Leverage ratios
Activity ratios
Profitability ratios
Current Ratio:
The current ratio gauges how capable a business is in paying current liabilities by using
current assets only. Current ratio is also called the working capital ratio
Jan
2017____________________________________________________1.48%
July
2017____________________________________________________1.38%
Comments: Last quarter the current ratio was 1.48 and the next quarter 1.38.So the
difference is telling that the company current assets are decreased.
Quick Ratio:
Quick ratio focuses on immediate liquidity (i.e., cash, accounts receivable, etc.) but
specifically ignores inventory. Also called the acid test ratio, it indicates the extent to
which you could pay current liabilities without relying on the sale of inventory.
Current assets
(- Inventory)
_____________________
Current Liabilities
Jan
2017____________________________________________________24.8%
July
2017____________________________________________________53.5%
Comments: As the difference is described that the RAI quick ratio in last quarter is
24.8 from last year 53.5 that shows the progress is going too much good in company
LEVERAGE RATIO
Leverage Ratios (propose for long term financial strength)
Debt to Equity:
Debt to equity is also called debt to net worth. It quantifies the relationship between the
capital invested by owners and investors and the funds provided by creditors. The higher
the ratio, the greater the risk to a current or future creditor. A lower ratio means your
client's company is more financially stable and is probably in a better position to borrow
now and in the future.
Jan
2017____________________________________________________0.57%
July
2017___________________________________________________0.616%
Comments: The company debt equity increased as well as the sales of company also
increased with the change in Total Liabilities as well as in Net Worth of the company
from last quarter.
Debt Ratio:
The formula is:
Total assets
Jan
2017____________________________________________________49%
July
2017____________________________________________________50%
Comments: This ratio shows a minor change in both quarters. which shows stability
that is good for company.
o ACTIVITY RATIO
EffRAI_70ency evaluates how well the company manages its assets. Besides determining
the value of the company's assets, you and your client should also analyze how
effectively the company employs its assets. You can use the following ratios:
Inventory Turnover: This ratio shows how many times in one accounting
period the company turns over (sells) its inventory and is valuable for spotting under-
stocking, overstocking, obsolescence and the need for merchandising improvement.
Inventory
July
2017________________________________________________8.32 Times
Days Inventory: This ratio identifies the average length of time in days it takes
the inventory to turn over. As with inventory turnover (above), fewer days mean that
inventory is being sold more quickly.
______________________
Inventory Turnover
Jan
2017___________________________________________________45Days
July
2017___________________________________________________35Days
Comments: As Ratio shows inventory turnover fewer days mean that inventory is
being sold more quickly. Which means RAI is making progress.
o PROFITABILITY RATIOS
Indicate to the firm how effectively the business is being managed. These ratios provide
the firm information about the company's bottom line -- simply stated they describe how
successfully the firm is running the business
Gross Profit Margin: Gross profit margin indicates how well the company
can generate a return at the gross profit level.
The formula is
Gross Profit
________________
Net sales
Jan
2017___________________________________________________9.7%
July
2017___________________________________________________13.31%
Comments: The G.P margin ratio increased in 2nd quarter. Which shows the Variable
The formula is
EBIT
________________
Net sales
Jan
2017___________________________________________________4.69%
July
2017___________________________________________________7.48%
Comments: The O.P margin ratio increased in 2nd quarter. Which shows the Expenses
are effRAI_70ently controlled by the management
Net Profit Margin: The net profit on sales ratio (also called the profit margin
on sales ratio) measures the headquarters' organization's profit per dollar of sales. The
profit margin on sales ratio is calculated as:
The formula is
________________
Net Sales
Jan
2017___________________________________________________2.5%
July
2017___________________________________________________4.9%
Comments: As the net profit after tax increase as compared to last Quarter due to
decreased fixed expense therefore the net profit margin ratio increased.
The formula is
Net Profit
________________
Net ASSETS
Jan
2017___________________________________________________5.91%
July
2017___________________________________________________11.76%
CONCLUSION
REHMAN AUTO INDUSTRIES main aim is to provide the latest, cutting-edge
technology, yet affordable means of transportation to people from all walks of life. We
have the infrastructure, business set-up and campaign management expertise to facilitate
us in building a solid reputation through the delivery of reliable technologies and
services, along with dedicated management and customer service personnel.As Auto
technology constantly evolves, our excellent resources will enable us to develop new
solutions that can enhance your demands and offerings by bringing new and innovative
services to the market first.
With the world of business becoming increasingly sophisticated, the requirement for
rapid, reliable and cost-effective solutions is critical to the success of our corporate
clients and individual customers. Most businesses have a common range of requirements,
but many have far more complex needs. As a dynamic company ROHI MOTORCYCLE
takes pride in its ability to respond rapidly and with great flexibility to meet individual
customer needs.
It was a good experience for me to work for the RAI_70 as an internee. I learned a lot of
good things during my internship period in the organization. I worked in different
Departments ofRAI_70. First I worked on the Store department through which I got
maximum knowledge and experience and than I have an other department Assembly line
for one week. There I came to know a lot about the manufacturing and parts of the
organization .
After that I worked on another department that is engine shop, paint shop, and at last the
FINANCE & Marketing department.
In the end, through my internship period the conclusion is that my 6 weeks in RAI_70
helps me in order to achieve an excellent carrier. And also this successful experience
opens the door of jobs in multinational companies for me.
References:
http://www.Atlashonda.com/pk http://www.pama.com.pk
http://www.mhhe.com http://www.google.cpm/
http://www.rai70.com.pk
BY By
Rondlend Philip Kottler 12th/ed
By
Michel Belch 6th ed
CERTIFICATE
This is to certify that this internship report submitted by Mr. MAJID ALI is accepted in
its present from the Department of management Sciences “The Islamia University of
Bahawalpur” as satisfying the requirement for the degree of Bachelor Business
administration
Committee
Supervisor Chairman
Ms Tabinda kiren DR Jawad iqbal
Department of Commerce Department of management Sciences
The is lamia University of The Is lamia University of
Bahawalpur Bahawalpur