Project Objectives And Overall Research Marketing Essay

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ACCA is one of the most prestigious degrees of this era of competition. As a qualified ACCA, one gets a lot of opportunities to enhance his educational pursuits and one of them is obtaining a 'BSc (Hons.) in Applied Accountancy'. Choosing from a list of 20 topics was not an easy task as most of them were interesting and were my keen interests. But I was looking for a topic that can add in my knowledge and enable me to keep pace up with the modern world. So I have, finally, chosen the following topic for my Research Report:

"How the introduction of a new technology can assist an organization in achieving its business objectives"

One of the motives of choosing this topic is that the technological advances achieved in the past few decades have brought about a revolution in the business world, affecting nearly all aspects of working life. People can reach others throughout the world in a matter of seconds, with cost being increasingly irrelevant. With technology's penetration into every business function executives have seen first-hand how it gives them access to well-organized, quality information they can use to make better decisions, and how it fundamentally supports the day-to-day running of their business.

Most people, however, think of technology in terms of its artifacts: computers and software, aircraft, pesticides, water-treatment plants, birth-control pills, and microwave ovens, to name a few. But technology is more than these tangible products. In border aspects, Technology includes the entire infrastructure necessary for the design, manufacture, operation, and repair of technological artifacts, from corporate headquarters and engineering schools to manufacturing plants and maintenance facilities. The knowledge and processes used to create and to operate technological artifacts-engineering know-how, manufacturing expertise, and various technical skills-are equally important part of technology.

The other reason for choosing this topic is an association of technology with innovation. Innovation is the essential factor in any economy to have efficient production. Technology is also closely associated with innovation. Innovation enables the introduction of new technology which is non existent earlier and can bring about enormous changes in the work practices, business operations as the benefits are manifold.

The other major task entrusted to me through this project was choosing the organisation for carrying out the subject research which required a great deal of planning as the most suitable entity had to be selected. Being a student of accountancy, I am highly interested in analyzing the industrial sector as industrial sector is the backbone for every economy. For the selection of the industry, I went through internet and business magazines. In order to define the real impact of new technology, along with elaborating the fact that how it aids an organization in achieving its business objectives, I selected PAK ELEKTRON LIMITED (PEL).

PAK ELEKTRON LIMITED is the pioneer manufacturer of electrical goods in Pakistan. It was established in 1956 in technical collaboration with M/s AEG of Germany. In October 1978, the company was undertaken by the SAIGOL GROUP OF COMPANIES. Since its setting up, PEL has always been contributing towards the advancement and development of the engineering sector in Pakistan by introducing a range of quality in home appliances and electrical goods and by producing hundreds of engineers, skilled workers and technicians through its apprenticeship scheme and training programs. The Company also continued to enhance its facilities to meet the growing demand of the products. In technology sector, they also showed a marvelous progress by producing new, innovative and automatic products both in appliance division and power division.

Developments In technology have a momentum of their own. However, the question arises as to "what will be the impact of new technology on the performance of the PAK ELECTRON LIMITED (PEL)?"

Quite clearly the Internet and other new technology like telephone fax, and automatic machinery did affect every kind of business as well PAK ELEKTRON LIMITIED to change their performance and production level and to cut costs. It is often cited that the cost of conducting one transaction or manufacturing one unit over the Internet and through the use of new technological ways may be only one-hundredth of the cost of doing the same transaction via old conventional ways. On the revenue side, it is also accepted wisdom that the NEW TECHNOLOGY provides PAK ELEKTRON COMPANY with much greater opportunities to cross-sell their products to the customers. This is because the new technology and new technological ways of manufacturing enable PEL to collect and analyze information about their customers in a much more systematic way than before and to engage in what is known as "mass customization" of their products. They introduced more lines of products in appliances divisions and power divisions, which are the two major segments of their production.

The reasons stated above constituted my choice of the organization. The aims and objectives of my report are to present a detailed analysis on PEL, based on its history as well as on the data currently available, regarding its technological evolution and the achievement of its objectives. My report will depict the various internal and external technological factors that have an impact on the company's performance and results.

The overall objective of this study is to identify the impact of NEW TECHNOLOGIES on PAK ELEKTRON COMPANY and prepare a business analysis report. The broader purpose of this research project is to explore the relationship among new technologies and business sectors.

More specifically the objectives of the report are:

Understanding and analyzing the concept of new technology;

Exposing the scope of an association sandwiched between technology factor and business sector; and

Measuring the level of impact of new technology on PAK ELEKTRON COMPANY.

Part 2 - Information gathering and accounting / business techniques

Information is "the result of applying data processing to data, giving it context and meaning." Information can then be further processed to yield knowledge.

This section of the research report discusses the sources of information as well as the procedures and methods used in collecting, collating, generating and interpreting the information.

Generally, there are two sources of data (or information).

Primary Source of Data

Secondary Source of Data

Such data that establishes a link to the first hand information that comes to you directly from its origin.

Any data or second hand information that passes through some media and reaches you.

Primary sources of data collection

The source of primary data collection was directly from head office of PEL. This comprised interviewing personnel at various levels of the hierarchy such as the General Managers Appliance & Power Division, the Area Manger or Customer Services Officer and the use of Questionnaires.

According to the nature of this research, it is clear that such a source would be the best one to obtain relevant data. My discussion with these personnel revealed the internal strategies of PEL in respect of new technologies, used in their area business. Moreover, I also got a chance to have a short meeting with the General Manager, Power Division of PEL Mr. Aftab Ahmad, that was extremely helpful for me in carrying out this research project.

Source

Reason for use

Description

Meeting with the General Manager, Power Division

Meetings have always been pillar stone in collecting information. The meeting with the General Manager, Power Division, Mr Aftab Ahmad proved very fruitful as it enabled me to gather vital information for my project such as company policies, operations, use of new technology, adherence to standards of using them

Moreover the General Manager explained to me the reasons for introduction of new technology in their home appliance and power divisions specifically in 'switch gears' and 'deep freezers'. Furthermore, he also explained regarding introduction of improved assembly methods of generators and as to how the introduction of new technology has an impact on the business. We also discussed some of the questions that I had regarding the project.

Later the General Manager instructed one of his assistants to accompany me to the factory and the workplace which helped me to get a better perspective of the practices of PEL.

Getting an appointment with the key personnel of PEL was a cumbersome task; however, I managed to arrange a meeting with the General Manager.

This particular meeting lasted a short while though, but it was a big source of information and I was able to discuss many points related to the changing technological environment and its impact on organization's overall performance.

Questionnaires

A questionnaire was designed by me containing a set of questions which were submitted to people to gain statistical information.

Such questionnaire was used to gather market response to the products of PEL.

This was a tiresome work. I had to roam about in market going from shop to shop where there are showrooms of PEL's products. The motive behind this activity was to gather data about consumers' preferences and PEL's response towards these preferences.

Secondary sources of data collection

While collecting secondary sources of information, it was ensured that the sources used are highly reliable. The sources that were used to gather information are discussed below:

Source

Reason for use

Description

Financial Reports

Yearly published financial reports contain detailed statements of organization's financial position, comprehensive income, cash flows and the annexed notes to the accounts.

Financial reports also include directors' report which, along with giving an overview of company's performance over the years, provides a broader outlook of the effect on revenue due to the technological changes.

Financial reports of all the listed companies are readily available from Lahore Stock Exchange. So, I collected latest annual reports of PEL. I used these statements for calculating annual performance and studying the economic and environmental factors affecting the business sector.

Internet

The Internet includes commercial, educational, governmental, and other networks, all of which use the same set of communications protocols.

Internet is the biggest hub of information. It lets you explore all type of data. I went through different articles and analysis relating to PEL as well as its competitors in order to gather information relating to the impact of introduction of technology.

This method was time consuming but proved to be the key source.

I visited he website of PEL (www.PEL.com.pk). I also searched a number of other websites to get information about the concept of technological advancement.

Newspapers and Business Magazines

I also scanned newspaper and business magazines like 'The Recorder' to obtain any articles related to the business industry and specifically PEL and prepared a summary of the gathered information. I also watched CNBC Pakistan and Business Plus to find out any related news.

Such kind of information source gives an immense help while preparing reports.

Such sources are readily available. I visited libraries, especially I paid weekly visits to the British Council Library to scan different newspapers for some related articles I searched the relevant information from different papers. This process was time-consuming.

Part 3 - Results, analysis, conclusions and recommendations

This section of the research report analyses the data collected in detail. As mentioned above, the impact of new technologies on PEL and its usefulness in achieving organization's objectives is analyzed using several techniques. The analysis includes, along with other things, predicting the trend of NEW INVENTED TECHNOLOGY in global economy and studying the potentials benefits of technologies. The research continues by analyzing various different non-financial factors and issues by the use of strategic theories and models. Further, the recent annual performance and position of PEL is deeply analyzed by using latest annual reports.

The products manufactured by PEL have always been of high standard and the name PAK ELEKTRON LIMITED is synonymous with QUALITY all over Pakistan. Since its inception, the company has been working for the advancement and development of engineering know-how in Pakistan which is evident from its mission statement, reproduced hereunder:

"To provide quality products and services to the complete satisfaction of our customers and maximize returns for all stake holders through optimal use of resources. To focus on personal development of our Human Resource to meet future challenges. To promote good governance, corporate values and a safe working environment with a strong sense of social responsibility."

PEL is one of the major manufacturers of electrical goods in Pakistan, focusing on both industrial and consumer segments. The Company has a strong foothold in the power equipment market and is well established in the home appliances market. PEL has been continuously adding new products to its range. As a result, PEL has registered a significant increase in its sales volume, during the last ten years.

Product Portfolio

The company comprises of two divisions:

POWER DIVISION

The gap in demand and supply of energy in the country is on the rise for quite a while resulting into severe load management. This requires huge input from Government and Private sector on the generation side in different forms such as thermal, hydel, coal and wind. Funding aspect of fuel supply and the circular debt issue also results into less than optimum capacity utilization of the generation facilities.

Keeping in view the challenges in this area, few years ago the company embarked upon a major program of enhancing its capabilities to design and manufacture state of the art electrical distribution equipment in the country.

The Power Division primarily manufactures

Transformers

Switchgears

Energy Meters

EPC

And is a major supplier to WAPDA and KESC and commands the market with an approximate share of 36% in transformers, 35% in energy meters and 34% in switchgears. These shares are based on the allocation of orders by WAPDA, KESC and supplies made to private consumers.

Transformers

Setting up of the new manufacturing facility has given a technological edge to the Company over its competitors not only within the country but also in the entire Middle East and North African region.

There are two types of Transformers:

Distribution Transformers

Power Transformers

Distribution Transformers

It includes

Pad Mounted Transformers: These transformers are installed on grounds

Pole Mounted Transformers: These are installed on poles and distribute electricity to area around.

PEL is producing 'distribution transformers' that range from 10 KVA to 6000KVA.

Power Transformers

Power transformers are huge size transformers that are installed in grid stations. These transformers are produced ranging from 10 MVA to 40 MVA.

Major Customers

Major Suppliers

WAPDA and KESC

Account for over 90% of the total transformer sales

ORB UK, for Silicon Steel Sheet

Thyssenkrupp Electrical Steel GmbH of Germany, which supplies Silicon Steel Sheet

International Industries Limited Pakistan for supply of elliptical tube

Universal Industries Pakistan for Copper Rod, wire etc.

Pak Hye Oils for supply of transformer oil.

Switch Gears

Switchgear business during the current period remained constant due to moderate demand from both private sectors as well as from WAPDA. Since implementation of programs funded by World Bank and ADB, PEL is expecting more orders from public sector.

PEL manufactures MV & LV switchgears for indoor & outdoor installations which comply with all significant international standards & regulations. PEL's share in market for switchgear including MV metal clad switchgear cubicles, MV Pad Mounted Transformers, Kiosk Type Substations, LV Power Factor improvement plants, Motor control centers & bus tie duct remained stable due to better management of customer relation.

Major Customers

Major Suppliers

WAPDA and private sector almost equally divided

Areeva (Dubai) for supply of Relays

Hyundai Heavy Industries, South Korea for supply of VCB

Pelka Elektrik Malzemeleri of Turkey

Samitomo Corporation (Taiwan) for supply of hot rolled sheets

Energy Meters

The cash machine of Electric Utility Companies is in the process of change from Electro Mechanical to Digital Meters. The features of digital metering include time of the day, maximum demand indication, remote access, two way communications and a number of other features that make this equipment a smart product. It also enjoys the confidence of the consumer with respect to its reliability and accuracy

.

PEL had anticipated this new trend and had timely acquired proven technology. Hence we are able to meet the demand for single and three phase applications by in-house production. The business in this product is showing healthy signs in terms of revenue and profitability and enhanced utilization of production capacities. PEL manufactures four types of energy meters;

Single Phase Electromechanical Meters

Single Phase Static Meters

Three Phase Electromechanical

Three Phase Static Meters

The electro-mechanical energy meters are manufactured under license from ABB of USA. The quality of PEL meters has been certified by KEMA Laboratories of Holland. PEL meters are superior to others due to their ability to lower revenue losses through accurate and precise operation and reduction of maintenance expenses.

Single Phase energy meters provide maintenance-free operations over a long period and accurate measurement of electrical energy. They improve load performance and precision accuracy.

Major Customers

Major Suppliers

WAPDA and KESC

Account for almost 100% of the total energy meter sales

Zhejiang Holley Imp. & Exp. Co. Ltd of China and ABB INC Electricity Metering of USA supply energy meter parts for single phase meters

Mitsubishi Corporation of Singapore provides polycarbonate resins

Weldey Electric (HK) Ltd.- supply of EM Kit

EPC Contracting

With restructuring of power sector in Pakistan customers' demand of high value packaged solutions for transmission systems and enterprise electrification requirements are expected to grow. PEL EPC consists of human resource with high academic qualifications and experience of local as well as global markets. The EPC division delivers custom designed and built solutions in following areas.

132KV and 220KV grid stations for power utility companies.

132KV and 11KV substations for industrial and commercial customers.

Integration of private captive power generation plants into utility network for sale of their surplus power to utility companies.

Electrification of housing projects and industrial parks

APPLIANCES DIVISION

The Appliances Division was established in 1980-81 when company introduced its first consumer product i.e. Window room Air conditioner in Pakistan. Refrigerators and Deep Freezers followed this in the year 1986-87.

Appliances Division deals in following product lines.

Refrigerators

Air conditioners

Deep Freezers

Other Domestic Appliances

Refrigerators

PEL Refrigerators were introduced in 1987 with features such as VCM (Vinyl Coated Metal) coating; stylish finishing and auto drain systems. PEL refrigerators carry compressor made by Danfoss of Germany. With respect to refrigerators, company's motto is:

"Not only refrigeration, we believe in healthy preservation"

The refrigerator business contributes 40% of the Company's sales and this trend is expected to continue in years to come. PEL's market share is 28 %. And its competitors are also big names like Dawlance, Waves, Haier and some other International brands.

Major Suppliers

Danfoss Compressors D.O.O of Slovenia- for supply of Compressors

BASF Corporation Ltd. Korea- Polystyrene

Marubani ITOCHU Thailand and POSCO S.Korea for CR steel sheets.

Chang Zhu appliance Support Ltd.- Evaporators

LG Chemicals South Korea for VCM Sheets

Golden Dragon Precise Copper Tube Inc. China- for Copper Tube.

Air Conditioners

PEL is among the major suppliers in the domestic air conditioning market. PEL started manufacturing window air conditioners for the first time in Pakistan in technical collaboration with "General" of Japan. The air conditioners were specifically designed to meet the extreme climatic conditions of Pakistan. PEL's air conditioners have excellent cooling capability at high temperature, varying levels of humidity, high air dust and uneven voltage power supply conditions.

The air conditioners market in Pakistan comprises of window air conditioners and split air conditioners. PEL holds market share of 10 % while rest is shared by various Local and International players. Major Suppliers include Galanz, Midea and Aux for supply of A.C Kit.

Deep Freezers

The company's ability to produce tailor made B2B projects has helped it in securing orders from corporate sector. This segment has become permanent feature to its deep freezer business with repeat orders. Proven quality of company's products and its prompt after sales service has also helped it to maintain and develop stronger relation with its valuable corporate customers.

Other Domestic Appliances

This category includes Microwave ovens, Water dispensers and Washing machines which compliment the home appliances range of the Company. PEL emphasizes on each product category through product campaigns, in-time availability & focusing on shop share. Microwave was the most highlighted in this category which is offered with new & attractive designs for the consumers. PEL has increased Microwave product range by offering different sizes and models meeting varying requirement of its customers. In addition, company has launched economical models in water dispenser category to meet the growing customer needs.

Developments in the Area of Information Technology

By incorporating the essence of the mission statement in the company branding line, and using new technologies, company intends to create the desired image and achieve the following objectives:

A high visibility level.

Heightened awareness amongst the target market.

To favourably mobilize the target market towards the organization and its products.

Minimum cost for maximum projection.

Enhance the level of relationship with customers (corporate/individual) and employees.

Upgrade teaching abilities, skills and knowledge of teaching staff.

Enhance the participation of Private Sector in training activities at Management level.

Prepare training plans, programs and projects keeping in view the local as well as foreign manpower training requirements.

For the purpose of achieving these set standards and to utilize the benefits of new technologies, PEL established a department of information Technology which is constantly striving to introduce simpler plans of buying the desired product. Moreover, it has played its part in respect of:

Lower product prices

Introduction of consumer finance initiatives

Low interest rates

Improved consumer purchasing power

IT department's key responsibilities are as follows:

Troubleshooting and problems facing in computers.

Installing and deletion of software's.

Right protection and issuance.

Developed and maintain internal network.

Developed and maintain domain of each person.

Create and enhance internal software's running currently.

Hardware and all software issues.

CRITICAL ANALYSIS / EVALUATION

Home Appliance Market

The industry enjoyed a boom period from 1992 to 1995 but it received a setback in 1996 when sales tax was raised to 18% from 15%, besides the levy of excise duty. The industry recovered from 1999 onwards following the government tariffs rationalization on imported components and the increasing domestic demand. Primarily three active players namely Dawlance, PEL and Waves are currently meeting almost the entire domestic demand of refrigerators, deep freezers and air conditioners.

However the volume level at which the local manufacturers are operating has resulted in cost efficiencies due to economies in product and raw material purchases thereby making local products competitive with Chinese brands. Furthermore, the threat from Chinese manufacturers is further reduced due to the high level of deletion achieved by local producers.

The home appliances market in Pakistan has expanded in the past several years and the growth is expected to continue. The total size of home appliances market is Rs 70 Billion out of which Rs 46 Billion comes from sales of white goods, Rs 16 Billion from electronic goods, and Rs 8 Billion from gas appliances.

DESCRIPTION

VALUE (RS. IN BILLION)

PERCENTAGE

White Goods

46

65.71

Electronic Goods

16

22.86

Gas Appliances

8

11.43

TOTAL

70

100

This expansion is mainly due to the constantly changing and, of course, improving technologies that answer consumers' ever changing demands. Moreover, low prices, availability of consumer financing at lower interest rates and changing life styles with a trend towards preserving eatables for a longer period have also been key factors in this expansion.

Power Equipment Market

The demand for power equipment is on the rise in the country due to system revamping and village electrification projects being implemented by the utilities and more investment in electricity transmission and distribution by the private sector.

The Power Division market mainly comprises of Transformers, Switchgear and Energy Meters. PEL has been able to maintain its market share in all three products and is expanding its market share backed by strong R&D knowledge in power equipment and high product quality.

PRODUCTS

Market Size (units)

PEL SUPPLIES

Units

%age

Transformers

9,322

3,356

36%

Switchgears

2,547

866

34%

Energy Meters

1,669

584

35%

TOTAL

13,538

4,806

35%

Product Wise Sales History

2008

2007

2006

2005

2004

2003

Transformer (TR)

3,356

4,528

2,688

1,497

1,521

823

Energy Meters (EM)

584

1,045

1,246

934

786

508

Switchgear (SG)

866

751

610

445

306

112

Power Transformer (PT)

284

165

-

-

-

-

Power Projects (PP)

922

354

-

-

-

-

Refrigerators (RF)

5,446

4,345

5,179

4,489

3,013

1,787

Air conditioners (AC)

1,232

1,024

910

483

37

217

Trading

1,236

865

409

227

414

283

Total

13,926

13,077

11,042

8,075

6,077

3,730

New Technologies and Achieving Business Objectives

I would like to quote here Michael Schrage's following insightful observation that he made in an interview to Knowledge Inc.:

"I think "knowledge management" is a bullshit issue. Let me tell you why. I can give you perfect information, I can give you perfect knowledge and it won't change your behaviour one iota. People choose not to change their behaviour because the culture and the imperatives of the organisation make it too difficult to act upon the knowledge. Knowledge is not the power. Power is power. The ability to act on knowledge is power. Most people in most organisations do not have the ability to act on the knowledge they possess. End of story."

While discussing in detail the subject of achievement management, the interviewee explored a few aspects, the major of which was 'The Role of Technology'. Adopting new technology that perfectly responds to the changing demands of the consumers is indeed an achievement management. It is the biggest practical tool for an organization to achieve its objectives efficiently.

As detailed above, PEL has been using this tool for the last six years and evidently it has shown the result in form of increased sales and enhanced market share. PEL has always responded to the changing era in a positive way and introduced its new/improved products at right time. This has not only made its sales' graph grow higher but also enabled the company to pursue its mission statement. The questionnaires, I used, revealed that its PEL's trait of introducing new technology that has earned it a greater market share and customer loyalty.

Future Outlook

PEL is geared towards addressing and meeting the expectation of its customer its quality products in both domestic appliances and electrical equipments. PEL future performance will be based on cost savings, increased sales and high operating efficiencies and all that, of course, will be made possible by being technologically updated. Various steps have already been introduced with the objective of generating sustainable earnings by focusing on different operational areas and business diversifications.

PEL is well positioned to realize its potential by taking advantage from the expected growth in the economy as its capabilities are aligned with the priorities of its customers both in Power as well as Appliances division.

SWOT Analysis

Strengths

PEL is the pioneer manufacturer of electrical goods in Pakistan

PEL was 16th Company in Pakistan which got ISO 9002 Certification, ever since and top management is committed to make PEL a total Quality Management (TQM) Company

Huge distribution network all over Pakistan

Deploying the latest technology in Power Division

Strong brand image

Strong quality, sale and service

Skilled labour, technical staff and efficient finance executives

Regular arrangement for holding employee effective training programs

Goods Business relations of the company with potential customers

Effective material management

PEL provides excellent after sales services. For this purpose they have also developed a separate department by the name of Consumer Marketing Department (CMD).

Weaknesses

Lack of marketing orientation

PEL industry is characterized by high variable costs due to higher consumption of resources. This results in lower contribution margins as compared to other industries.

Due to lack of finance it cannot utilize all its resources on its full capacity. It increases the cost of products per unit that decreases the profit margin of each consumer item.

Opportunities

The manufacturing of Grid Stations and accessories supplementary to Grid Stations may help PEL for greater revenue generation.

Range of appliance products can be increased in near future.

Expansion of area because of brand equity.

PEL has a very strong network of sale offices all over the country, which they are making good use of.

Threats

Inflation and its effects on the cost of production

Cheap Chinese Products

Bigger advertising budgets of others

Government policies change with the change of government. The political influence affects the performance of PEL very badly.

To analyze this research project I used business techniques rather than accounting techniques. Evaluating the techniques being used is very vital for carrying the project successfully. At the heart of any successful evaluation is a set of relevant, succinct, considered and appropriate evaluation questions. The ability to recognize and then ask 'good' questions is an essential skill for any evaluator. The following generic questions helped me as a rough guide for project evaluation:

What do I want your project to accomplish?

How will I know if I have accomplished my goals?

What activities will my project undertake to accomplish my goals?

What factors might help or hinder my ability to accomplish my goals?

I completed this analysis in the following steps.

Gathered data from primary resources i.e. personally met with executives of PEL

Obtained information from internet

Collected desired piece of data from business journals and libraries

Studied the annual reports of PEL to get to know about the performance

Visited different technological sites to know about the latest electronic technologies trends

Visited showrooms of electrical appliances and got questionnaires filled.

Presented the data collected under the specified heads with full consideration the potential benefits of technologies for PEL

Limitations

One of the limitations, which I faced, was the time limitation. To complete this research project, I used the primary source of data. I met with managers of different outlets and customer service representatives. Some people were very cooperative. They really helped me out to get my desired information. But at the same time as they were the branch officers, they have very short time. I had to manage myself in that short time. That made me a little uncomfortable.

CONCLUSION / RECOMMENDATIONS

I conclude that PEL from its inception has always been contributing towards the advancement and development of the engineering sector in Pakistan by introducing a range of quality electrical equipments and home appliances. In spite of stiff competition from emerging local and multinational brands, PEL Group's appliances and electrical equipments have remained in the spotlight due to constant innovation. PEL is synonymous with quality. Strategic partnership with multinationals of repute have enabled the PEL Group to incorporate new technologies into existing product ranges, thus giving the Pakistani market access to innovative, affordable and quality products.

PEL is one of the most widely recognized brands in the domestic refrigerator market. It is among the largest local manufacturer and one of the leading brands. With continuous efforts in R&D, PEL is concentrating on quality of product and cost minimization. The Company is considering technical collaboration for value addition through planned capital expenditures.

Increased sales of manufactured refrigerators coupled with sales of split air conditioners are the major factors contributing towards growth in the appliances business. Other products are also being introduced as part of Company's strategy to broaden its product range.

The company's switchgear and energy meters business is progressing well with PEL being a major player in the local market. PEL's market share in the private sector has grown over the previous year with share in utilities staying at almost the same level.

As part of product diversification strategy and to address the changing market needs, PEL split air conditioners with already proven energy saver characteristics were very aggressively marketed during, 2003. PEL is expected to become a major player in split air conditioner market in future.

Company plans to continue focusing on broadening the product range, introducing new models, sizes, colors and features. To commensurate with the growing market, Company has launched television sets to add to its existing product range of split air conditioners, microwave ovens and vacuum cleaners.

PEL aims to introduce new products in order to capture higher market share through volumes. In line with this objective, the Company is expected to introduce Small Domestic Appliances (SDAs), kitchen appliances etc. The Company has recently set up a Consumer Marketing Division, which in association with various banks is targeting employees of private and public sector corporate to buy PEL products at attractive prices. It is taking full benefit of its technological development in achieving its objectives.

Recommendations

The company should add more features to their products. People are attracted towards a product with unique features that would make the customers feel that they have got their money's worth.

To gain more competitive advantage over their competitors, PEL has to work on their marketing strategies.

Company should improve its marketing for the power and appliance products by using Bill Boards.

Service rules should be strictly implemented.

Appliances scheme should curtailed.

Capital expenditure should be curtailed.

Margins on sales should be maximized.

Keeping in the power crisis prevailing in the country, the company should come forth with portable generators for household use.