Final Presentation ME

7/31/2019 Final Presentation ME

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Final

Presentation

Presented by:

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Managerial Economics

Presented to:Sir Dawood Mamoon


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Preface

The project of Managerial Economics is about the overall

analysis of home appliance industry in depth.

We smartly study Professional level approaches and techniques

to analyze the firms market and profitability analysis which

are required to understand the industry standards.


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Mission/Vision of PEL

To excel in providing Engineering good and services

Through continuous improvement {VISION}

To provide quality products & services to the complete

satisfaction of our customers and maximize returns for all

stakeholders through optimal use of resources. (Mission)


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Introduction of PEL

Pak Elektron Limited (PEL) is the pioneer manufacturer

of electrical goods in Pakistan. It was established in 1956 in

technical collaboration with AEG ofGermany.

In October 1978, the company was bought by the Saigol

Group of Companies.
http://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/AEGhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Saigol_Grouphttp://en.wikipedia.org/wiki/Saigol_Grouphttp://en.wikipedia.org/wiki/Saigol_Grouphttp://en.wikipedia.org/wiki/Saigol_Grouphttp://en.wikipedia.org/wiki/Saigol_Grouphttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/AEGhttp://en.wikipedia.org/wiki/Pakistan


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The company comprises in two divisions

Appliances Division.

Power Division.


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Appliances Division

Air conditioners.

Refrigerator.Deep freezers.

Microwave oven.

Washing machine.

Generators.


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Power Division

Transformers

Switchgears

Kiosks

Compact stations

Shunt capacitor banks

Energy meters

Generators


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Strengths

of PEL

Brand Name

Strong Dealer Network

Quality Products

Best Sales Services

Market leader in WRAC

Number 2 in Refrigerators in Pakistan Strong Management Team


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Weaknesses

of PEL

Financial Problems

Lack of advertisement

System variations

Lack of Product range

Less Utilization of capacity


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Pricing of PEL

Price is a strong element in the marketing mix. It has a direct

impact on the customer, business.

1 Raw Material

2- Labor Charges

3- Factory Overheads

4- Advertisement Cost 5- Governmental Duty

6- Excise Duty

7- Company's Profit Margin


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Financial Analysis

Results for the 3rd quarter ended September 30, 2011. Sales

for the period ended amounted to Rs. 11.446 billion as

compared to Rs. 16.719 billion in the corresponding periodlast year.

This reduction in sales is the main reason for the loss

suffered during 9 months which is at Rs. 663 Million. Ratiosof this quarter


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3rd Qarter of 2011 Ratios

Current Ratio 1.029

Debt Ratio 0.23

|Interest Coverage Ratio -1.77

Gross Profit Margin 12.77%

Net Profit Margin -5.79%

Earning Per Share (EPS) -5.85

1st

Qarter of 2012 Ratios

Current Ratio 0.91

Debt Ratio 0.18

|Interest Coverage Ratio -0.27

Gross Profit Margin 14%

Net Profit Margin -5.16%

Earning Per Share (EPS) -1.98 per Share


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Documents

Final Presentation ME