PTC

PAKISTAN TOBACCO COMPANY

Group MembersFARAZ SHAHID

IBRAHIM HAFEEZ

ALI AWAN

MALIK HASSAM

MALIK AHEMAD

SUBHAN ASHRAF

INTRODUCTION

Introduction

• Incorporated in 1947

• Operating under the license of British American Tobacco (BAT)

• ‘Seed to Smoke’ path

MANAGEMENT OVERVIEW

Management Overview

• Interview• Mr. Naseer Ali, the strategic planning manager

• ‘Work is never ending’, he said

• Grading System of the company defines the Vertical Hierarchical present in Organization

ORGANIZATION STRUCTURE

Organization Structure

Chairman, Executive Officers, Directors and CEO

HR General Manager

HR Development

Manager

Training and Conference

Center

Health Unit

IT General Manager

Finance General Manager

Supply Chain Finacne Manager

Marketing Finance Manager

Corporate Finance Manager

Supply Chain General Manager

Procurement of Materials Manager

Leaf Manager

Wrapping Material Manager

Packaging Manager

Marketing General Manager

Legal Department Manager

Quality Control Manager EHS Manager

Organization Structure

• There is coordination among the hierarchical levels through formalization

• Centralization exists

ENVIRONMENT

Environmental effects

• Manage Environmental Elements • Adaption

• Favorability Influence

• External Factors impacting the organization• Legal-political Element

• International Element

• Socio-cultural element

• Characteristics of the Organization's Culture are Administrative

MANAGERIAL DECISIONS

Managerial Decision Making at PTC

• Crisis issues are given priority over non-crisis issues

• Programmed decisions are made by the middle-level management

• Non- Programmed decisions are made by the top-level management

• Barriers to effective decision making are eliminated at all levels

STRATEGY DEVELOPMENT TO ACHIEVE ESTABLISHED GOALS AND

PLANS

PTC’s Vision

• “ First choice for everyone”

• Vision encompasses the headship in tobacco industry that is to be on the apex

PTC’s Vision

The three strategies include:

• Growth Includes organic growth and mergers

• Productivity includes increasing efficiency with minimum resources

• Responsibility includes socially responsible and following business principles.

Mission Statement

•  “Our strategy reflects our vision, being the champion of growth, productivity, responsibility and the winning organization”

• Importance is given to the customers

• Use of the latest technology in the production area to give a competitive edge to the company

Strategic Management Process

• Vision formulation which leads to the statement of the Mission.• The mission is then converted into performance Objectives• To achieve objectives you develop Strategies• Strategy Implementation• Evaluation of performance

Levels of Strategies• Corporate Level

• Business Level

• Functional Level

Environmental assessment

• Rivalry; Lakson Tobacco

• Bargaining power of customers; low

• Bargaining power of suppliers; high

• threats of new entrants ; not much

• threat of substitute

SWOT

• Strenght : Market leader, best H.R

• Weakness : Highly regulated market

• Opportunity : Own leaf operations (leaf growing areas)

• Threat : Competition, restrictions by importing countrries

STRATEGIC ORGANISATION DESIGN

PTC Structure

• PTC follows a functional structure

• Functional structure is departmentalization according to the functional or specialization area.

• PTC has HR Manager, IT Manager, Finance Manager, Finance Manager, Supply Chain manager, Marketing Manager, Legal Department Manager

Uses of Functional Structure for PTC

Advantages Possible Economies of scale

for PTC

Functional Structure suitable for stable environment

Coordination within functions

Development of expertise gives competitive advantage

Disadvantages Managers are trained for a

narrow field of work

Restricted view of organisation among employees

Difficult to measure performance

HUMAN RESOURCE (HR)

Human Resource

• HR development• Recruitment

• Employee database

• Public relations

• Training programming• Company orientation

• Share experiences

• Basic guidance of job description

LEADERSHIP

Leadership

Sources of leadership power

• legitimate power• reward power• coercive power• expert power• information power • Referent power

MOTIVATION

Motivation

• Belongingness needs- employees has good relation with coworkers and higher management

• Esteem needs- as we move upper hierarchy level they get good important projects, and good offices.

• Than they develop their capabilities and such environment is created in PTC.

Motivation

• Factors such as growth, recognition, pays, working conditions etc.

• Effort performance expectance- employees put their full effort.

• Performance outcome- resources efficiently, which leads to required outcomes.

RECOMMENDATIONS

Recommendations

• Should use divisional structure

• Should remain attentive to the changing situation and should look for new opportunities

• Should favour the approach of decentralization over centralisation

• Should formulate more ways of enhancing the training and development

• Some authority should be delegated to the lower level

Thank You!