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ACKNOWLEDGEMENT
I would like to thank to my department of Management Sciences at NUML Islamabad,
for providing me this opportunity of exploring and learning the practical implementation
of our theoretical knowledge which I get during my studies, in a commercial
organization. It certainly helped me in understanding the practical nature of business
operation and has broadened my vision. It has also enabled me to find out that up to
which extent my knowledge is applicable in a commercial organization. At the same time
I would like to thank *** for providing me the detailed knowledge of business
operations. Especially I would like to thank my supervisor *** whose continues guidance
which enabled me to write this report.
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DEDICATION
I would like to dedicate this report to my parents, brother in law and teachers whose
continuous support lead me to the successful completion of this assignment.
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EXECUTIVE SUMMARY
This report has been prepared in accordance with the mandatory requirement of MBA
course. This report focuses on an Indenting & Trading firm Global Business
Concerns. Established in 1998, Global Business Concerns aimed to be an efficient,
advanced business trade setup to serve not only in every province of Pakistan but also
internationally. The target area was too broad to be covered in a short span of time but
having settled its aim at lesser profit margins with utmost satisfaction of its clients made
it easier for Global Business Concerns to increase its clientage considerably in a very
short time. Now I am submitting this written report about this period. During my internship,
I was assigned work in the different departments of the company in order to get the deep
experience of its functions. This report thoroughly explains my observations, understandings,
experience, analysis, and knowledge about the company.
This report contains five chapters and in the first chapter the introduction and
background, mission, vision and products of GBC are included like Mechanical
Components, Sensors, Transducers and Detectors, Test and Measurement Equipment,
Laboratory Equipment and Scientific Instruments, Medical/Industrial/Educational
Equipments, Electrical and Electronic Components and Soft wares.
In the second Chapter the objectives and all that ways and terms which are used in
Business help me in this internship are included. I also observe how to manage and all the
ups and downs of the business in this internship.
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In the third Chapter I mentioned all that companys department like Procurement,
Finance, Sales, administration, where I worked for short time and seek all that techniques
which are used to run a successful business.
In the fourth chapter I analyze all the strength, weakness, opportunity, and threats, I also
analyze the PEST analysis in this report because my specialization is in marketing, so it is
necessary that how the Political, economic, Social and technological factors which effects
the company.
During my working in Global Business Concerns I have learned a lot about the business
world that too in International context. All that positive things I have noticed someshortcomings in the operations of GBC which in my opinion needs to be addressed on
priority basis. Extensive efforts have been made to provide as much of the inner view of
indenting business of the firm.
In the last chapter, I have given the suggestions & recommendations and conclusion of
the internship, by following these recommendations company can improve its product
market and can easily gain the attraction and satisfaction of customers, Not only the
customers, GBC can also improve the satisfaction and performance level of its employees
by following these recommendations.
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TABLE OF CONTENTS
Descriptions Page No
1. Acknowledgement i2. Dedication ii
3. Executive Summary iii-iv4. Table of contents v-vii
CHAPTER NO 1
1.0 Introduction & Background 1-31.1 Mission Statement 31.2 Vision Statement 41.3 Product Range 4-121.3.1 Mechanical Components 4
1.3.2 Sensors, Transducers and Detectors 41.3.3 Data Acquisition and Signal Conditioning 51.3.4 Test and Measurement Equipment 51.3.5 Laboratory Equipment and Scientific Instruments 51.3.6 Materials, Chemicals and Adhesives 61.3.7 Heating Solutions 61.3.8 Medical/Industrial/Educational Equipments 71.3.9 Gas Containers/Cylinders/Valves 71.3.10 Soft wares 81.3.11 Electrical and Electronic Components 81.3.12 Industrial Computers and Embedded Computer Components 8
1.3.13 Optical Components and Optics 91.3.14 Imaging and Video Equipment 91.3.15 Laboratory Equipment and Scientific Instruments 101.3.16 Semiconductors 101.3.17 Networking and Communication Equipment 101.3.18 Cables & Connectors 111.3.19 Motion and Controls 111.3.20 Flow Control and Flow Transfer 121.3.21 Fluid Power Components 12
CHAPTER NO 2 13
2.1 Objective of the Study 142.2 Significance of The Study 142.2.1 Exposure 142.2.2 Better Understanding of the Concepts 142.2.3 Understanding of Business 142.2.4 Working in Team 152.2.5 Integrated Role of Departments 15
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2.2.6 Impact of Technology 152.3 Definition of Terms 15-162.3.1 Procurement 152.3.2 Supplier 152.3.3 Buyer 15
2.3.4 Purchase Enquiry 162.3.5 Letter of Credit 162.3.6 FOB 162.3.7 CFR 162.3.8 Ex-Works 162.3.9 Lead Time 162.3.10 GBC 16
CHAPTER NO 3 17
3.0 Work Experience 18
3.1 Procurement 18-233.1.1 Defining the Specification 183.1.2 Defining the contractual Terms 193.1.3 Sourcing 193.1.3.1 Competitive Tendering 193.1.3.2 Open Tendering 193.1.3.3 Selective Tendering 203.1.4 Sources of Information 203.1.5 Supplier Appraisal 203.1.5.1 Technical/Production Capabilities 203.1.5.2 Financial Capabilities 213.1.5.3 Commercial Capabilities 213.1.6 Inviting Quotations 213.1.7 Analyzing the Quotations 223.1.8 Price Negotiation 223.1.9 Contract Award 223.1.10 Follow Up 223.1.11 Payment 223.1.12 Evaluation 233.2 Finance Department 23-243.3 Sales Department 253.4 Administration Department 25
CHAPTER NO 4 26 4.0 Analysis 27-294.1 PEST Analysis 274.1.1 Political 274.1.2 Economical 274.1.3 Socio-culture
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4.1.4 Technological 274.2 SWOT Analysis 284.2.1 Strengths 284.2.2 Weaknesses 284.2.3 Opportunities 29
4.2.4 Threats29
CHAPTER NO 5 30
5.1 Conclusion and Recommendations 31-335.1.1 Market Focus 315.1.2 Supplier Selection Criteria 315.1.3 Bidding 325.1.4 Communication Gap 325.1.5 Compensation Plan 32
5.1.6 Training 335.1.7 Reward System 335.1.8 Employee Turn Over 335.2 References 34
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Chapter No.1
Introduction & Background
1.0 Introduction & Background
Todays highly competitive business environment, fast changing technology ,
highly complex product requirements and omission of trade barriers has opened the door
of new era of business. Now the role of indenting firms has become more important and
necessary in any business environment. Companies normally cannot reach the best
supplier for the goods required nor do they have extra resources to put in this specialized
field so they chose the other option they ask from indenting firms/suppliers to fulfill the
demand. In Pakistan there are not very indenting firms that are operating in local as well
as in International market, Global Business Concerns was created to fill this gap.
Established in 1998, Global Business Concerns aimed to be an efficient, advanced
business trade setup to serve not only in every province of Pakistan but also
internationally. The target area was too broad to be covered in a short span of time but
having settled its aim at lesser profit margins with utmost satisfaction of its clients made
it easier for Global Business Concerns to increase its clientage considerably in a very
short time.
A team of experienced professionals from the areas of business and marketing, finance
and administration started this laborious task of introducing Global Business Concernsto the local and international markets. The task was not an easy one but thanks to our
devoted professionals who worked day and night to achieve the desired goals. The hard
earned reputation is the result of team work by our highly professional marketing staff
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along with the diligent administration backup, which helped Global Business Concerns
to set its market at private, industrial, educational, medical, telecom, semi government
and government organizations working in the major cities of Pakistan and also at remote
sites in all the provinces of Pakistan. Now Global Business Concerns has dealt with
almost every leading group in Pakistan including numerous Engineering, Electrical,
Hydropower, Oil & Gas, Telecom, IT groups as well as Educational and Medical sectors
too.
Since implementing a stringent control system, we have received a warm welcome from
every international organization and have established strong business relations globally.The product range is not limited as Global Business Concerns is in business with several
organizations from Europe, USA, and Far East including China, South Korea, Singapore
and Taiwan etc. The very first year of establishment Global Business Concerns hit a
target of 1.1 million $ (US) and now it has reached up to the limit of 2.8 million $
(US).Our constant and reliable quality services coupled with professional skilled backups
from concerned organizations has made us enable to satisfy our clients as per their
requirements. The quality control cell was established in 2000 to assure the standards of
the products imported globally which has the prompt backup of professionals from the
concerned areas; the cell ensures that all production processes are in conformance with
both national and global standards. We have already exported/imported items to/from
more than 30 countries and regions worldwide, with our main markets in Asia, Europe
and USA.
1.1 Mission Statement:
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1.3.3 Data Acquisition and Signal Conditioning:
GBC is proud to provide the quality products for data acquisition and signal conditioning
from the manufacturers like Texas Instruments, National Instruments, and Super Logic
etc.
1.3.4 Test and Measurement Equipment:
Main Clients are Educational, Industrial, Medical and telecom sectors, GBC has been
serving above mentioned sectors as well as Oil & Gas and many R&D organizations of
Pakistan by Providing High Tech Equipments from all over the world.
1.3.5 Laboratory Equipment and Scientific Instruments:
GBC is capable of supplying a wide range of laboratory instruments, scientific lab
equipment, telescope, electro freezer micro tomes, panel meter, microscope, tissue
processor, Survey Equipment, Metrology, Educational Training Boards, and helps life
science, also GBC is trustworthy name among the leading industrial groups of Pakistan
in order to depend for their requirements.
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1.3.6 Materials, Chemicals and Adhesives:
GBC is a prime source of Adhesives, Sealants, Coatings - Materials for Structural & Decorative
Restoration - Materials for Composites, Electronics, Marine & Industrial Use - Compounds for Rigid and
Electrometric Molds, Castings, Embedding & Tooling - Epoxies, Urethanes, Acrylics & Other Compounds
- Chemical Specialties - R & D.
1.3.7 Heating Solutions:
GBC represents worlds renowned manufacturer of Heat Resistant Products M/S ADL
Insulflex of Canada in Pakistan and has captured a reasonable business during the year
2004 and is very optimistic about the future aspects. The range includes Fire Proof
Sleeves to Thermal cloths supplied in different standard sizes and can be customized as
per customer requirements.
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1.3.8 Medical/Industrial/Educational Equipments:
Medical equipments from Microscopes to high tech latest MRI and cardio vascular
diagnostic systems and Pathological lab equipments are main focused products for the
health sector, including industrial health. GBC has established a vital position among all
of the industrial groups of Pakistan for their equipments and components requirements,
also fulfilling the requirements of educational institutes by providing them most advance
training and lab equipments at very competitive prices.
1.3.9 Gas Containers/Cylinders/Valves:
GBC represents high pressure cylinder manufacturer from Poland and Czech Republic in
Pakistan and is fulfilling industrial and faster growing CNG sectors requirements. For
labs high quality gas containers are available for the safe transportation of different types
of gases and liquid gases.
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1.3.10 Soft wares:
GBC is a prime source for its valuable clients for their software requirements, can supply
original licensed soft wares from all the renowned soft ware groups of the world, focused
sectors are Banking, educational, corporate and industrial including R&D organizations.
1.3.11 Electrical and Electronic Components:
GBC is serving Electronic and electrical industry by providing items from ICs, to high
tech testing equipments and has strong business relations with the world renowned
manufacturers from Europe, USA, Canada, Taiwan, and china for quality products.
1.3.12 Industrial Computers and Embedded Computer Components:
Single board computers, networking, flat panel displays, industrial rack mounts, graphics
controller, analog data acquisition, digital I/O control boards, and software, PC's,
peripherals, fiber optics, wiring, compact PCI industrial systems, are some of examples
from a list of items which were supplied by GBC to achieve the toughest standards for
applications in telecoms, railway/railroad signaling/information display and
manufacturing machinery.
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1.3.13 Optical Components and Optics:
GBC is a leading supplier of custom fabricated and coated optical elements and finished
assemblies for medical and other OEM applications. Our principals state of the art
optical coatings include antireflection, diachronic and metal mirrors, interference filters,
beam splitters, polarizer, high power laser coatings and transparent conductive films. We
supply windows, spherical lenses, wedges, prisms and mirrors, working with a variety of
substrates, including optical and filter glasses, fused silica, and infrared materials such as
silicon, germanium, and zinc compounds. CVI Optical Components specializes in precision optical components for the ultraviolet, visible, near and far infrared, in
prototype and production quantities.
1.3.14 Imaging and Video Equipment:
From Data acquisition to video cameras, lenses, panel meters and CCD Cameras,
telescopes and binoculars to LCD, GBC can assist you to find the exact product
according to your project and requirements. Also has the capability to provide worlds
most advance surveillance cameras including software.
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1.3.15 Laboratory Equipment and Scientific Instruments:
GBC is capable of supplying a wide range of laboratory instruments, scientific lab
equipment, telescope, electro freezer micro tomes, panel meter, microscope, tissue
processor, Survey Equipment, Metrology, Educational Training Boards, and helps life
science, also GBC is trustworthy name among the leading industrial groups of Pakistan
in order to depend for their requirements.
1.3.16 Semiconductors:
GBC deals in discrete semiconductors and analog and digital ICs for audio, video,
automotive, consumer, mobile, multimedia, and wireless communications markets, also
can provide a wide range of semiconductors including programmable logic devices,
memory, chipsets and networking ICs, Linear and mixed-signal integrated circuits
including microcontrollers, fiber, communications, wireless RF, data converters, high-
speed interface and optoelectronic.
1.3.17 Networking and Communication Equipment:
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From digital transmission equipment to network routing and internet security products,
broadband communications solutions, enterprise wireless networking, low power chips
empower networking equipment and voice communication equipment and services to all
areas of Industry, GBC has a lot of satisfied clients in all over the country including most
remote areas of Pakistan.
1.3.18 Cables & Connectors:Supplier of standard and custom electronic, Telecommunication cable , connectors , cable
assemblies, and patch panels for broadcast, audio, video, RF, microwave, heat shrinkable
terminations and can provide 50,100,200, 250,300 pairs armored jelly filled
telecommunication cables as per clients requirements.
1.3.19 Motion and Controls:
Products include electronic, pneumatic, robotic, mechanical systems & components as
well as motion sensor lights, occupancy sensor lights, driveway motion detectors,
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Factory Automation Products. Specializes in cost effective, easy to use motion control
solutions ... Programmable Servo Drives Multi Axis Controls Gear heads.
1.3.20 Flow Control and Flow Transfer:
Measuring the flow of liquids is a critical need in many industrial plants. In some
operations, the ability to conduct accurate flow measurements is so important that it can
make the difference between making a profit and taking a loss. In other cases, inaccurate
flow measurements or failure to take measurements can cause serious (or even disastrous)
results, GBC can provide up to the standard and cost effective equipments from all over
the world according to the individuals requirements.
1.3.21 Fluid Power Components:
We have a strong customer base all over the country and offer our customers pneumatic
and hydraulic solutions using our knowledge and expertise. Our sales team is highly
trained and we aim to offer our customers the best possible service at competitive prices.
Focused clients are Oil & Gas, Mining and construction Industries.
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CHAPTER # 2
OBJECTIVES AND SIGNIFICANCE OF THE STUDY
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2.1 OBJECTIVES OF THE STUDY
The objective to undergo this study/internship is to get an in depth knowledge of business
operations of a commercial organization, that can broaden my vision, enhances my
understanding towards theoretical concepts and their practical implementation in the
business world. It will certainly help me to adjust in the business market after the
completion of my studies. Another objective is to see what new things I can come up
with during my internship period, what kind problems will be there once I will enter the
practical world, further it is also a mandatory requirement for my degree.
2.2 Significance of the Study
This internship has helped me in the following ways.
2.2.1 Exposure:
This internship has helped me a lot in my practical exposure towards office work. And I
have found it quite different from what I had studied in the books.
2.2.2 Better Understanding of the Concepts:
Internship has helped me a lot in the better understanding of the theoretical concepts of
management, international business, finance etc. that cannot be fully understood by me
without any practical exposure.
2.2.3 Understanding of Business:
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It helped me to understand the nature of business world and its operations. How it relates
to international trade, what kind of barriers/difficulties are faced by the International
trading environment.
2.2.4 Working in Team:
I also learned the significance of team work in any organization. How to manage team as
a team leader. How to motivate the subordinates and what are the tools available with
which we can make the lazy and less spirited people of the organization work.
2.2.5 Integrated Role of Departments:
To understand the relationship that exists between various departments of an
organization. What is the importance of each department in the attainment of
organizational goals?
2.2.6 Impact of Technology:
I have also observed that how technology has played a very important role in the field of commercial trading. Where in the past most of the things were mostly done with
manually and record keeping was also very manual and laborious task. But now a day
things are quite the contrary as the most well developed soft wares and programmes are
playing an important role in businesses.
2.3 Definition of Terms
2.3.1 Procurement:
The process of obtaining/acquiring goods, raw material and supplies.
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2.3.2 Supplier:
A firm/person who supplies good, raw material or supplies.
2.3.3 Buyer:
A firm/govt./person who intend to buy goods, raw material or supplies
2.3.4 Purchase Enquiry:
Invitation to quote for required item from pre qualified supplier
2.3.5 Letter of Credit:
A famous mode of payment used in International trade dealings.
2.3.6 FOB:
Free on board means that seller/shipper will deliver the merchandise to the buyer or
its agent at the designated point of origin.
2.3.7 CFR: Cost and freight means that it is the shippers responsibility to get things from their door
to port of destination
2.3.8 Ex-Works:
Good are made basically available for pickup at the shipper/sellers factory or warehouse.
2.3.9 Lead Time:
Time from order placement to delivery of goods
2.3.10 GBC:
Global Business Concerns
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Chapter No. 3
The Company Departments and Work Experience
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3.0 WORK EXPERIENCE I work in different department of the GBC like Procurement, Finance, Sales and
Administration.
3.1 Procurement
Procurement department is the vital department of Global Business Concern because as
an indenting firm it relies on competitive pricing with high quality goods and services.
The main function of procurement department is to procure the items/goods that are
demanded by the Potential clients by considering the following five points
The right quality
The right quantity
Delivery to right place
Delivery on time
At right/desire price
The procurement department of Global Business Concerns strictly follows the above
mention five points. I have performed all the jobs related to procurement that are
discussed below
3.1.1 Defining the Specification:
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At this stage, we clearly define the specification of the required item. We need to
integrate with the technical staff or the customer who is the end user of the item.
An effective specification will
State the requirement clearly
Contain detailed information for Suppliers Costing
Permit Products to evaluated
Provide equal opportunity for suppliers
3.1.2 Defining the contractual Terms:
The terms of business need to be firmly established, thats why at GBC we give special
attention in deriving these terms. These contractual terms form the basis for relationship
and state the rights and duties of both parties i.e. buyer & seller. These terms contain
information like lead time, mode of payment, quantity required etc. These terms are
devised while considering the constraints from customer. We normally devise these terms
before asking for any quotation.
3.1.3 Sourcing:
Sourcing means the choice of supplier. It is a process of identifying suppliers who are
able to supply the required goods/items. At GBC we have a broad pool of suppliers so;
we can get the best possible price of required item. We use several methods of sourcing
as and when required. These are discussed below.
3.1.3.1 Competitive Tendering:
In competitive tendering the tenders have to be submitted and then opened subsequently.
All tenders are opened at the same predefined time.
3.1.3.2 Open Tendering:
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All interested suppliers have the opportunity of bidding for the required item. We
normally advertise in trade journals, E trade web sites to attract large number of
suppliers. A negative aspect of open tendering is that it takes sufficient time to filter those
large no. of offers.
3.1.3.3 Selective Tendering:
A practice that is used by GBC extensively for regular orders/items. We identify potential
suppliers then conduct supplier appraisal and after that we shortlist the suppliers for
tender. It saves our time from unnecessary filtering of inadequate offers.
3.1.4 Sources of Information:
We use several sources of information like supplier catalogue, on & offline trade
directories, Chamber of commerce journals etc. to get information about the product,
manufacturers, suppliers etc.
Of these we heavily rely on online trade directories.
3.1.5 Supplier Appraisal:
It is a process of evaluating the most appropriate supplier. Supplier appraisal is necessary
to reduce the risk related with supplier. The right supplier can provide us with
The product when needed
At the right price
To agreed specification
In right quantities
A positive, and helpful attitude from supplier
There can be several methods of supplier Appraisal like Visit to Supplier, Comprehensive
questionnaire, Short questionnaire etc.
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At GBC we evaluate our suppliers capabilities in following areas
3.1.5.1 Technical/Production Capabilities:
While assessing these capabilities we concentrate on following things
Suppliers maximum and current out put
Research & development capability
Systems for managing quality like ISO9000
Details of equipment
Nature/Quality of work force
Inspection and testing procedures
3.1.5.2 Financial Capabilities:
Financial capability is essential for suppliers to assure the continuity of supply and
reliability of product quality. We normally use it for those suppliers to whom we want to
have long term relationship. We normally ask for suppliers bank/financial statements,
credit rating, bank guarantee etc. at this stage.3.1.5.3 Commercial Capabilities:
It includes the supplier companys history, its structure etc. It is always very important to
get the information about
how long the company is in the business,
its product range
location
Distribution Channel
Lead Time for required item
Customer list etc .
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3.1.6 Inviting Quotations:
After supplier appraisal, we request for quotes from only those suppliers who are capable
of performing the required task. The specification and contractual terms will be used by
the supplier to produce their quotation.
3.1.7 Analyzing the Quotations:
At this stage we make the comparative statements of the quotations received. We
compare the price factor and strictly follow it by giving it highest weight in our decision
making.
3.1.8 Price Negotiation:
Negotiation can reduce the cost substantially. After our comparative analyses we short
list few supplier on their pricing terms and start negotiation to get discount in the quoted
price. Cost can be reduced and quality can be improved by careful negotiation.
3.1.9 Contract Award:
Now after the negotiations are completed and a single supplier is selected for the supply
of goods, we issue the purchase order to our supplier. The purchase order contains the
purchasers requirement. This order is the basis of the contract with supplier.
3.1.10 Follow Up:
Follow up with the supplier is necessary to keep the status of goods up dated, so we will
be aware of any delay in shipment etc.
3.1.11 Payment:
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The contract between the purchaser and seller contain the payment terms. At GBC we
normally go for Letter of Credit (L/C) in orders higher than $10000 and otherwise
Advance part payment and remaining at the time of delivery, pattern is followed.
3.1.12 Evaluation:
After the contract has matured then comes evaluation stage. Here we analyze the
performance of our supplier. This evaluation can provide us very important information
that can help us for future purchases.
3.2.1 Finance Department:
The finance is the life blood of any commercial organization. An efficient finance
department can be a competitive advantage for any business. The finance department at
GBC is using computerized accounting software Peach Tree, which enables the
department to work efficiently. At GBC the finance dept is involved multiple tasks like
a) Regular maintenance of accounts books, it includes recording income and
expenditures incurred. Preparation & disbursement of salaries to employees etc.
Jobs Performed
I have to fill in the employees pay group number.
Then all the information about the employee is displayed on the computer screen.
Then we have to add all of the allowances and feed in the number of days
employee had worked against the number of days in a month.
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In case of any leave or such event we have to see if it was duly authorized or not.
If it is authorized then we do not make much of the changes in the total number of
days employee has worked. For e.g. if there are 25 working days in the month and
employees attendance sheet shows that he was present for just 20 days then we have
to see if the employee had taken the leave for these days or not. If the leave is
approved then we will feed in full 25 days otherwise we will reduce the number of
days in the column. And computer will make changes to the salary of the employee
b) Provide support to procurement department while analyzing comparative
statements of suppliers.
I used to check and compare the prices offered by different suppliers in accordance
with the given specification and after that short list the five suppliers for further
negotiation.
c) Provide support to Sales department while making bid for any tender,
Here I do the costing of the product to be quoted which includes the price, taxes,
duties (if applicable), cost of after sale service etc.
d) Preparation of documents and coordinate with banks to generate/accept L/C for
import/export of goods.
e) Deduction of tax at source from supplier as governed by the law and deposit the
same with in due period.
f) Claim for Exemption of tax paid at the time of imports (from Purchaser). When e
import some item and pay the taxes like income tax, sales tax at port then we
claim for its exemption from our customer, to avoid any duplication in taxation.
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While working in finance department of GBC, I learned a lot about posting of entries,
preparation of salary, document preparation for opening letter of credit with the bank,
deduction of tax at source, claiming exemption of tax etc. these are the activities that are
specific to some businesses and I might not get knowledge of these areas in any other
organization. Concepts become clearer after working in practical implementation of my
theoretical knowledge.
3.2.2 Sales Department:
Though GBC is registered with several organizations and its sales department needs not
to make die hard efforts to get business enquiries but they are burdened with more
difficult and important task of bidding for tenders/enquiries.
The sales dept work closely with procurement and finance department while making an
offer to the buyer.
Procurement department is responsible for
Sourcing of right product
Sourcing right supplier
At right price
Desired lead time
While finance department deals with costing of the bid that includes feed back from
procurement dept. on price and other terms, and duties & taxes etc. . After getting feed
back from these two departments sales/Bidding department make the bid for the client.
I was involved in making the demo bid but not the real one, may be they dont want me
to know the profit percentage.
3.2.3 Administration Department:
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This department fulfills the need of standard admin department, all hiring, firing,
maintenance, promotions etc comes under this department. It also heads the small MIS
department which directly comes under it. The admin department looks after the human
resource requirement, any material requirement of other departments. I also worked there
but only for a short period; my job includes the maintaining employees personal records,
their appraisal forms, etc.
Chapter No.4
ANALYSIS
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4.0 Analysis
4.1 PEST Analysis
PEST Analysis is a simple, useful and widely used tool that helps to understand the "big
picture" of Political, Economic, Socio-Cultural and Technological environment. Thats
why I select PEST method to analysis of organization.
4.1.1 Political Factors:
Pakistan is not stable with its political trends. Its keep on changing and with every new
political environment there are new legal regulations which impact the GBC e.g. import
duties, taxes etc. Inter company relationship/ attitude is another factor which affects the
GBC.
4.1.2 Economic Factors:
Economic growth in the country is really going bad as whole the world is going through
financial crisis. There is an economic slump which causes in the break down of new
project and potential investor to interest in Pakistan. Government is also not specialty
highly. So there is a less opportunity for GBC to carry out tenders. Exchange rates are
also high. Inflation itself concerns for the company but in such a bad economic condition
GBC still manage to stable its position.
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4.1.3 Socio-Culture:
While there is less economic growth people are hesitate to invest leisure activities are on
low level. Earning capacity of people is also a failure.
4.1.4 Technological Factors:
Technology is vital for competitive advantage, and is a major driver of globalization.
GBC uses the latest technology to compete the market. The best example of latest
technology is Online networking Sytem. Latest technology also helps the GBC to
improve the services and quality of their products.
4.2 SWOT ANALYSIS
SWOT Analysis includes the analysis of Strength, Weaknesses, Opportunities, & Threats
of the organization.
4.2.1 Strength:
Lead the market in which it operates
Member Islamabad chamber of commerce and industry
An integrated monopoly
Fewer competitors
A well renowned business networking
Experienced work force
Offer variety of products
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4.2.2 Weakness:
Internet organization and business issues
Slow decision making including external interference
Low level of cash flows, causes in loss of contracts
Monopolistic culture further added to its complexities
4.2.3 Opportunities:
Scope for efficient cost effective operations
Partnership with new entrants in deregulated environment
Large variety of contracts available due to the new ongoing projects in Pakistan
4.2.4 Threats:
Increase competition e.g. FX Concern also a leading Co. in the similar market
Ability to attract & retain professional
Reduction in international settlement rates
Inflation
Exposure to market competition
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Chapter No.5
CONCLUSIONS & RECOMMENDATIONS
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5.1 Conclusions & Recommendations
During my working in Global Business Concerns I have learned a lot about the business
world that too in International context. They are growing with at an above average rate.
They have a long list of satisfied corporate clients but they are facing stiff competition
from Pakistan and abroad also.
Despite all the positive things I have noticed some shortcomings in the operations of
GBC which in my opinion needs to be addressed on priority basis.
5.1.1 Market Focus:
The management of GBC is focusing on some specific areas of market confined mostly
to public sector. They have the resources and an excellent product range to serve the
customers of Private sector which includes Industrial sector, NGOs; Companies working
in neighboring country of Afghanistan etc. all those have great potential of business for
GBC. Huge projects by private sector and NGOs can be a lucrative opportunity for GBC
to avail.
I recommend the management of GBC to think on positive note and try to enter gradually
in private sector, especially to serve the NGOs as there are little chances of any mishap
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about payment of bills. If they will be able to develop a healthy, trustworthy relationship
with some NGOs, it will be very beneficial for them in long run.
5.1.2 Supplier Selection Criteria:
At GBC supplier selection takes place while giving the highest weight to price quoted, by
ignoring the other material facts. In my opinion this is not a healthy practice because we
should also consider the other facts also with price like mode of payment, delivery time,
FOB/CFR, bulk discount etc.
If a supplier quotes Rs.100 for a product and giving you credit of two months, while the
other supplier offers the same product at Rs.98 then we should consider the value of our money and make trade off.
I suggest to the management of GBC to change their supplier selection criteria
And give due consideration to others factors also.
5.1.3 Bidding:
At GBC the bid preparation comes under Sales department which has to coordinate with
remaining department, in the said case if there is mistake at any stage of bidding then it
will be quite difficult to find culprit and no body accepts the responsibility. Further it
becomes the lengthy process and deviates the sales department from its original task.
In my opinion GBC should create a separate section for bidding which includes the
person from procurement, finance and sales. It will fasten the process and provide relief
to sales department. There will be fewer chances of error in the bidding process.
5.1.4 Communication Gap:
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There is a strong communication gap between higher management and middle
management which lead to an environment of mistrust.
Higher Management should bridge this gap by interacting with the lower ones.
5.1.5 Compensation Plan:
The compensation offered to junior employees is not up to the standard. Though the
organization is growing but they are not sharing it its employees which creates low level
of motivation and further lead to high turn over of employees.
5.1.6 Training:
Training of the employees is the weak point of GBC. They dont try to equip their
employees with latest development in the industry. Technology has changed, trading is
computerized, payment is computerized and most of the things have been computerized.
So there is a need for time to time training.
In my opinion employees should be trained after every 3 years or so (specially the
technical staff) OR according to the need of the business.
5.1.7 Reward System:
Under the present system there are nor reward system for the employees no mater how
hard they work they will just get their salary, one bonus, and may be an increment once a
year and its not fair enough in present times of high inflation.
GBC should introduce the reward system to encourage employees and also enhance effort
from the lazy employees.
5.1.8 Employee Turn Over:
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Employee turnover is becoming common in GBC due to few of the above mentioned
reasons in the beginning such as lack of promotion criteria and no reward system. Due to
these reasons employee prefer to work in those organizations where they can get good
rewards and promotion on time and where employers can recognize their efforts.
Management is also very keen and quick on punishing the employees but they are little
reluctant to acknowledge their good deeds.
GBC should consider the following suggestions to reduce its turn over
Promotion criteria should be established
Reward system should be introduced
References:
Kotler, P. (9 th ed.) Principals of Marketing. New York: McGraw-Hill.
Sekeren, U. (7 th ed.) Business Research Methods.
Keller, L.K. (2 nd ed.) Strategic Brand Management.
Previous Annual report and case studies of GBC.
Haynes, M.G. (1978).Techniques of Developing Report: Part I. Personal
Journal.
Online References:
Web site: GBC (n.d).GBC Introduction & Background. Retrieved January10,
2009, from http://www.gbcpk.com/intro
Web site: Engelshcall, R. S. (1997). Report Writing. Retrieved January 2, 2009,
from http:// www.marcbowles.com/.../chapter4/amc1_ch4_one.htm
Web site: OWL Resources (n.d). APA Formatting. Retrieved January 30, 2009,
http://www.marcbowles.com/.../chapter4/amc1_ch4_one.htmhttp://www.marcbowles.com/.../chapter4/amc1_ch4_one.htm