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EXECUTIVE SUMMARY

1. Tyre industry of Pakistan is well established where growth rate is

increasing every year. Its market is also very competitive. There are

number of foreign and local suppliers including General Tyre

Company Karachi, Silver Stone Tyre Company Peshawar, service

Industries Ltd Gujrat and King Tyre and Rubber (Pvt) Ltd Lahore.

2. Silver Stone Tyre Company is Pakistans leading tyre manufacturing

company established on 18 August 1990 with Rs: 40.00 million

authorized capital. Being in the field of automobile tyre for long time

the management of company has developed a philosophy of harmony,

service, creativity and is providing quality product to its consumers.

3. The purpose of this report is to study the overall activities, processes,

and performance of the company with special focus on the Sales and

Marketing Department of the company.

4. The Silverstone Tyre Company was established on 18-08-1990 and

was registered with the Registrar of Joint Stock Companies. There arethirty-nine shareholders of the company who have been issued a capital

of Rs: 31,160,000,00. The company imports raw material from

European, and East Asian, countries. It produces different types and

sizes of tyre and tubes. The company target market is almost all the

major big cities of Pakistan, company also have some prestigious

clients like GHQ Rawalpindi and WAPDA Lahore. Chief executive is

the head of the company followed by chairman and than by the

managers of their particular departments.

5. Sales and Marketing Department is headed by the Sales and Marketing

Manager followed by Sales and Excise Officers, they have their own

duties and responsibilities. The company has also a proper procedure

for customer complaints, customer feedback and customer satisfaction.

Finance and Accounting Department is headed by the finance

executive of the company followed by Chief Accountant and other

officers and assistants all of them have their own duties and

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responsibilities. The company also maintains accounting books for

initial accounting entries.

Report Findings are

Some of the major problems of Silverstone are:

a. There is no provision for extensive training and development

programs, and employees are selected on previous experience and expertise

b. The company is relying mostly on short-term loans and funds,

which is dangerous, because of not being able to provide adequate short term

financing in tight money periods.

c. Current liabilities of the company have increase because of raw

material purchase on credit. Also the average collection period of the company

is high, as compared to the previous year.

d. The company is following an extremely conservative set-up both in

finance and general administration. The company does not undergo any formal

planning sessions. Too much reliance on spot decision making.

e. There is no concept of promotion activities like advertising,

although the company in using some sales promotion tools, but it still needs

some improvement.

Report recommendations are

a. The company should provide better training facilities to the employees

in whatever limited resources are available. The company should

provide better working environment and incentives to its employees.

The company needs to follow Management by Objectives (MBO)

principles. Company also needs to pay special attention to the

promotion activities with special emphasis on advertising.

b. To protect against effect of short term financing in tight money period,

the company should rely on long-term fund to cover short-term needs.

c. The company needs to follow some aggressive policies of growth in

both the finance and general administration. The company also needs

to develop an effective standard costing system, which will provide the

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opportunity of objective analysis of Cost of Goods Sold Statement and

Income Statement.

d. Receivable collection channels need improvement. Inventory costs

should be reduced by properly maintaining the accurate level of

inventory and also current liabilities should be reduced, by equitably

calling its debts especially to the suppliers of raw materials.

e. As mentioned, the company has no concept for promotion activities

like advertising for which an action plan is given in which the kind of

advertising, the timing and the channel for advertising is given.