Strategic Comparison of PEL and Singer Pakistan

8/13/2019 Strategic Comparison of PEL and Singer Pakistan

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Strategic Comparison

of PEL and SingerPakistan


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Submitted To

Mam Tahira Azam

Submitted By

M.Ali Naqvi [L1F11MCOM0164] (Group Leader)

Arslan Nawaz [L1F11MCOM2165] (D.M.D)

Fatimah Haroon [L1F11MCOM2220]

Maaz-ul-Hassan [L1F11MCOM0162]

Aqsa Muzaffar [L1F11MCOM2169]

Zainab Abbas [L1F11MCOM0029]

Own Haider [L1F11MCOM2126]


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Table ofContents

Companies Introduction .......................................................................................... 5

Introduction of PEL.............................................................................................. 6

Vision and Mission Statement of PEL .................................................................. 6About PEL ............................................................................................................ 7PEL Product Line .................................................................................................. 8

Introduction of Singer Plus.................................................................................. 9

Vision and Mission of Singer Plus ........................................................................ 9About Singer Plus .............................................................................................. 10Singer Product Line ........................................................................................... 10

SWOT Analysis of PEL and Singer ........................................................................... 12

SWOT Analysis of PEL......................................................................................... 12

SWOT Analysis of Singer Pakistan....................................................................... 14

Application 9 Strategic Tools on PEL ...................................................................... 15

Input Stage............................................................................................................ 16

Internal Factor Evaluation (IFE) ......................................................................... 17

IFE of PEL .......................................................................................................... 17IFE of Singer Pakistan ........................................................................................ 18

External Factor Evaluation (EFE) ........................................................................ 19

EFE of PEL .......................................................................................................... 19EFE of Singer Pakistan ....................................................................................... 20

Competitive Profile Matrix (CPM) ...................................................................... 21

Matching Stage ..................................................................................................... 22

BCG Matrix........................................................................................................ 23

IE Matrix............................................................................................................ 24

Space Matrix...................................................................................................... 25

SWOT Matrix..................................................................................................... 26


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Com

panies

Introd

uction

Companies Introduction

IN THIS SECTION:

Introduction of PEL

Introduction of Singer

SWOT Analysis of PEL and Singer


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Introduction ofPEL

Vision and Mission StatementofPEL

Vision Statement

To Excel in providing engineering goods and services

through continuous improvement.

Mission Statement

To provide quality products and services to the

complete satisfaction of our customers and maximize

returns for all stake holders through optimal use ofresources.

To promote good governance, corporate values, and

safe working environment with strong sense of social

responsibility.


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Ab o utPE L

Pak Elektron Limited (PEL) is the pioneer manufacturer of

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

collaboration with AEG of Germany and the Malik family. In

October 1978, the Saigol Group of Companies1purchased major

shares of Pak Elektron Limited. At that juncture, the company was

only manufacturing transformers and switchgears. With the

Saigols in management, PEL started expanding its product range by entering into Air

Conditioner manufacturing.

Currently the company comprises of two divisions:

Appliances Division Power Division

Appliances Division

PELs Appliances Division is the flag carrier of the Saigol Group. This Division of PEL

consists of home appliances manufacturing.

In 1981, PEL window type air conditioners were introduced in technical collaboration

with General Corporation of Japan. In 1986-87, the company started manufacturing

of refrigerators in technical collaboration with M/s IAR-SILTAL of Italy. In 1987, PEL

deep freezers were also introduced in technical collaboration with M/s Ariston of

Italy. In 2006, the Company has started manufacturing of split type air conditioners of

various capacities as the customer choice has shifted from window type to split type

air conditioners. The product has received good response from the market, which

encourages the company to multiply its production in the coming years.

Today, PEL has become a household name. Its products are not only in great demand

in the local market but the Company has also started exporting its appliances to

foreign markets.

Power Division

PEL Power Division is one of the major electrical equipment suppliers to WAPDA &

KESC. Since 1956 the company manufactures transformers, energy meters,

1The Saigol Group is a group of companies owned by one of Pakistan's wealthiest families, the Saigols. The family and

its companies are based in Lahore, Pakistan. The Saigols originally hail from Chakwal. The group is managed by three

Saigol brothers: Tariq, Nasim and Taufeeq. Amin Saigol was the founder of the Saigol dynasty where he started a

Calcutta shoe shop; the shop eventually led the Bihar Rubber Works in 1938. Amin had a son called Yusuf who is the

father of this business Trio. In 1948, the Saigols migrated from Calcutta and initiated their business in Faisalabad, the

textile city of Pakistan, under the banner of Kohinoor Industries Limited. Tariq Saigol is the eldest brother; he is head of

Kohinoor-Maple group, which owns the Kohinoor textile mills and Maple-Leaf Cement. He is known to be openly critical

of the Pakistani governments lack of interest in the textile sector. Nasim Saigol heads PEL and Kohinoor industries.


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switchgears, kiosks, compact stations and shunt capacitor banks. PEL also has had the

privilege of getting its equipment approved and certified from well-reputed

international consultants such as:

Preece, Cardew and Rider, England Harza Engineering Company, USA Snam Progeti, Italy Societe Dumezm, France Miner & Miner International Inc. USA Ensa, France

PEL Product Line

PEL Appliances Division Product Line

Refrigerator

Air Conditioner

(Split + Floor

Standing)

Water

Dispenser

Washing

Machine

Microwave

Oven

PEL Power Division Product Line

Transformer Energy Meters Switchgear


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Introduction of SingerPlus

Vision andMission of SingerPlus

Vision Statement

To be the leading retailer of home appliances

in Pakistan.

Mission Statement

To improve the standard of life of our

customers by offering high-qualityproducts and services at affordable prices.


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About Singer Plus

Singer has been operating in Pakistan

since 1877, when the first Singer sewing

machines went on sale in shops. Today,

Singer Pakistan Limited is a large,

diversified company with a presence throughout Pakistan. Singer has the largest

retail network in South Asia with over 750 stores.

Beginning with the sewing machine, Singers product portfolio has diversified to

encompass a highly successful multi-brand strategy combining products of top world

marquees with the companys own products across a range of household and

industrial categories.

Singer (Pakistan) B.V. holds 70.28% of the issued share capital of Singer Pakistan

Limited. Singer Pakistan Limited was listed on Karachi and Lahore Stock Exchanges in1985.

The foremost Home Appliance Retailer in Pakistan, offering various renowned brand

choices to its consumers, with a loyal customer base spread across the country from

North to South and East to West, catered to by a strong network of retail showrooms

and dealers and backed by the strongest of after sales service.

Singer Product Line

T.V Refrigerator A.C.

Deep freezer Cooking Range Water Heaters


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Washing Machines Sewing machine Food processor

Toaster Electric Kettles Iron


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SWOT Analysis of PEL and Singer

SWOT Analysis of PEL

S Strengths

Around 54.60% of Capital is Equity.PEL major shareholders are from Saigol Family which makes PEL family owned business

due to which there is a high level of control, trust and desire to gain profits.

Online portal system for employees.Customer care offices in +21 cities of Pakistan.Area sale offices in 19 cities of Pakistan.Strong distribution network in +50 cities of Pakistan with +3000 Distributors.Parts & Accessories of PEL products are available in all over Pakistan.PEL is one of the major electrical equipment suppliers to Water and Power Development

Authority (WAPDA) and Karachi Electrical Supply Corporation (KESC), which are the

largest power utilities in Pakistan.

International Awards and certificates like ISO 9002 certified by SGS Switzerland, nualEnvironment Excellence Award, 2010 for best Health, Safety and Environmental

performance etc.

Engineering Procurement and Construction division delivers custom designed and builtHV and EHV grid stations, electrification of housing projects, industrial parks and

optimum solutions for power utilization to all kinds of industries and commercial

customers.Attracting foreign investment around 0.03%.Brand image is strong.

W Weaknesses

Poor marketing departmentLess stylish home applianceFinancial ProblemsHigh pricePoor R&D


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O Opportunities

Increase in product range like T.V, vacuum cleaners etcGeographical expansion. Joint venture with other companies.Partnership with other companies like Orient have partnership with Samsung etc.

T Threats

Family business High influenced of distributors. Big advertising budget of other companies.

Energy crisis. Alternative energy resource products such as solar A.C. etc Chinese brands are available in market in less cost. New competitors


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SWOT Analysis of Singer Pakistan

S Strengths

Different ProductsBrands collaborationNationwide service network

W Weaknesses

Low market shareLow economies of scaleAvailability of costlier fundsPoor Marketing departmentPoor R&DObsolete technology

O Opportunities

Development and improved product mixDelivery of enhanced production efficienciesUp gradation of product portfolioLowering operational costsNew productsNew geographical areaAcquire new technology Improvement in brand image

T Threats

Riskiness of firm May face shortage of funds Questionable financial health Liquidation


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Application9Strategic

Tools

onPEL

Application 9 Strategic Tools on PEL

IN THIS SECTION:

Input Stage

Matching Stage

Decision Stage


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Inpu

tStage

Input Stage

IN THIS SECTION:

IFE

EFE

CPM


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Internal Factor Evaluation (IFE)

IFE of PEL

PEL

Internal Factor Evaluation

Strengths Probability Rank WeightOwner Equity 0.03 2 0.06

Family Business 0.02 1 0.02

Portal System for employees 0.02 2 0.04

Area sale office 0.05 3 0.15

Customer care offices 0.07 4 0.28

Distribution network 0.09 4 0.36

Availability of Parts & Accessories of PEL

products0.07 4 0.28

Power Division 0.1 4 0.4

International Awards and certificates 0.05 3 0.15

Engineering Procurement and

Construction division0.12 4 0.48

Brand image 0.04 3 0.12

Weakness Probability Rank Weight

Poor marketing department 0.09 4 0.36

Less stylish home appliance 0.03 2 0.06

Financial Problems 0.1 4 0.4

High price 0.04 3 0.12

Poor R&D 0.08 4 0.32

Total 1 3.6


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IFEof Singer Pakistan

Singer Pakistan

Internal Factor Evaluation

Strenghts Probability Rank WeightDifferent products 0.11 4 0.44

Brands Collaboration 0.1 2 0.2

Nationwide service network 0.09 3 0.27

Weakness Probability Rank Weight

Low market share 0.1 4 0.4

Low economics of scale 0.07 2 0.14

Availability of costlier funds 0.1 3 0.3

Poor marketing department 0.1 4 0.4Poor Research & Development 0.09 3 0.27

Obsolete technology 0.15 3 0.45

Poor Brand Image 0.09 3 0.27

Total 1 3.14


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External Factor Evaluation (EFE)

EFE of PEL

PEL

External Factor Evaluation

Opportunities Probability Rank WeightIncrease in product range 0.14 4 0.56

Geographical expansion 0.11 3 0.33

Joint venture 0.07 3 0.21

Partnership with other companies 0.06 3 0.18

Threats Probability Rank Weight

Family business 0.03 2 0.06

High influenced of distributors. 0.14 3 0.42

Big advertising budget of Othercompanies. 0.1

40.4

Energy crisis. 0.09 4 0.36

Alternative energy resource products

such as solar A.C. etc. 0.083

0.24

Chinese brands are available in market

in less cost. 0.072

0.14

Decline in industry growth 0.05 1 0.05

New competitors 0.06 3 0.18

Total 1 3.13


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EFE of Singer Pakistan

Singer Pakistan

External Factor Evaluation

Opportunities Probility Rank Weight

Developed & improved product mix0.07 1 0.07

Delivery of enhanced production

efficiencies 0.1 3 0.3

Up gradation of product portfolio 0.1 2 0.2

Lowering operational costs 0.08 2 0.16

New geographical area 0.08 4 0.32

Acquire new technology 0.1 3 0.3

Improvement in brand image 0.15 4 0.6

Threats Probility Rank Weight

Riskiness of firm 0.07 3 0.21

Shortage of funds 0.1 2 0.2Questionable financial health 0.05 2 0.1

Liquidation 0.1 3 0.3

Total 1 2.76


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Competitive Profile Matrix (CPM)

Competitive Profile Matrix (CPM)

CSFs ProbabilityPEL Singer Pakistan

Rank Weight Rank Weight

Better and effectivecommunication system

with employees plus

customers

0.05 3 0.15 1 0.05

Better customer sale

services0.06 4 0.24 3 0.18

Efficient distribution

networks0.08 3 0.24 2 0.16

Improvement in Brand

image 0.09 3 0.27 4 0.36Increase market share 0.1 4 0.4 4 0.4

New product development 0.11 4 0.44 4 0.44

Geographical expansion 0.12 3 0.36 4 0.48

Joint venture 0.04 2 0.08 3 0.12

Acquire new technology 0.13 3 0.39 4 0.52

High tech and efficient R&D

department0.08 3 0.24 4 0.32

Removal of financialproblems

0.07 4 0.28 4 0.28

Efficient marketing

department0.07 3 0.21 4 0.28

Total 1 3.3 3.59


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Matchin

gStage

Matching Stage

IN THIS SECTION:

BCG

IE Matrix

Space Matrix

SWOT Matrix

GSM


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BCG Matrix
http://localhost/var/www/apps/conversion/tmp/scratch_2/Boston%20Model%20Chart.docx


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IE Matrix
http://localhost/var/www/apps/conversion/tmp/scratch_2/IE%20Matrix.docx


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Space Matrix
http://localhost/var/www/apps/conversion/tmp/scratch_2/Space%20Matrix.docx


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SWOT Matrix
http://localhost/var/www/apps/conversion/tmp/scratch_2/SWOT%20Matrix.docx


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GSM
http://localhost/var/www/apps/conversion/tmp/scratch_2/GSM.docx


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Decisio

nStage

Decision Stage

IN THIS SECTION:

QSPM


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QSPM

Click on word to open a file

QSPM.xlsx
http://localhost/var/www/apps/conversion/tmp/scratch_2/QSPM.xlsxhttp://localhost/var/www/apps/conversion/tmp/scratch_2/QSPM.xlsxhttp://localhost/var/www/apps/conversion/tmp/scratch_2/QSPM.xlsx


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Recommendations

Adopt a true decentralized organization setup which gives all employees to takepart in decision making.

The company should have a strong marketing information system to make properforecasts.

Make sure proper functioning of HR department. More allocation of budget to the marketing department. More focus on the pull strategy in its promotion mix. Shorten its cash conversion cycle.

Should also focus on direct selling of its products to its customers. Should constantly add technology in its products & systems. Should speed up its delivery process by expanding its stores in areas of high

demand.

Conclusion

Pel has a great strength & opportunities. PEL Should take risk and go to other

markets. PEL Management philosophy is the hurdle in the progress of the company.

PEL should takeadvantage of todays media power to capture market

. Future of PELis very bright as it is grabbing opportunities & has the potential to compete with

challenges.

Documents

Strategic Comparison of PEL and Singer Pakistan