Management Report on BAKEPARLOR

Course: Management Principle Submitted to: Fahad Zuberi Submitted By: Zohaib Manzoor Zain Afridi Daniyal Pasha Mujtaba Aslam Shah Muhammad Usman Ahsan

Index
Acknowledgement ----------------------------------------------------------------------------------- 04 ECECUTIVE SUMMARY ------------------------------------------------------------------------ 05
Introduction ------------------------------------------------------------------------------------------------ 06 Vision Statement and Mission Statement ---------------------------------------------------------07 Core Values ----------------------------------------------------------------------------------------------- 07

Planning ------------------------------------------------------------------------------------------------- 08
Goals -------------------------------------------------------------------------------------------------------- 09 Strategies -------------------------------------------------------------------------------------------------- 09 Rules and procedures ---------------------------------------------------------------------------------- 10 Workforce -------------------------------------------------------------------------------------------------- 12 Raw material ---------------------------------------------------------------------------------------------- 12 Production ------------------------------------------------------------------------------------------------- 12 Finance ----------------------------------------------------------------------------------------------------- 13 Capital ------------------------------------------------------------------------------------------------------ 13 SWOT Analysis ----------------------------------------------------------------------------------------- 14 Strengths --------------------------------------------------------------------------------------------------- 14 Weaknesses ---------------------------------------------------------------------------------------------- 15 Opportunity ------------------------------------------------------------------------------------------------ 15 Threats ----------------------------------------------------------------------------------------------------- 16 BCG Matrix ----------------------------------------------------------------------------------------------- 17 PEST Analysis ------------------------------------------------------------------------------------------19 Political ----------------------------------------------------------------------------------------------------- 19

Economical ------------------------------------------------------------------------------------------------ 20 Social ------------------------------------------------------------------------------------------------------- 20 Technological---------------------------------------------------------------------------------------------- 21

Organizing --------------------------------------------------------------------------------------------- 22
Organization structure ---------------------------------------------------------------------------------- 24 Corporate Culture and Behavior of Bake Parlor with Its Stake Holders ------------------- 25 Stake holders --------------------------------------------------------------------------------------------- 26 Motivation -------------------------------------------------------------------------------------------------- 28

Leading -------------------------------------------------------------------------------------------------- 29
Leading policies ------------------------------------------------------------------------------------------ 30 Leadership style ------------------------------------------------------------------------------------------ 32

Controlling --------------------------------------------------------------------------------------------- 33
Controlling policies -------------------------------------------------------------------------------------- 34 Security policies ------------------------------------------------------------------------------------------ 35 Work ethics ------------------------------------------------------------------------------------------------ 36 Product List ---------------------------------------------------------------------------------------------- 37 Bibliography --------------------------------------------------------------------------------------------- 39

Acknowledgement

In the name of ALLAH the most Gracious and the most Merciful We are thankful to Almighty Allah who gave us the strength and power to complete this report on time. We were told to make this report in our management principle course by Sir Fahad Zuberi (our instructor). We are very thankful to him for his guidance, support and everlasting encouragement throughout the report. The making of this report was a memorable and a learning experience for us. Therefore I would like to mention the names of Mr. Mian Mahmood Hasan (Managing Director), Mr. Rub Nawaz (GM sales and Marketing) and Mr. Saeed (GM Finance and HR) of Bake Parlor for being kind to us and providing us with the information we needed, on our visit to Bake Parlor.

Executive Summary
Bake Parlor, in Pakistan is mainly involved in providing consumer goods to the general public. It came in to existence in 1926; inaugurated by Mian Ghulam Hasan. The main objective of Bake Parlor is to provide its customer with good quality consumer goods which includes bakery products, Italian food products, sauces, flour goods and snack product. However, this report is a research on Bake Parlor operation in Pakistan with its history and introduction included in it. This report basically focuses on the management related topic which includes Planning, Organizing, leading, controlling, SWOT and PEST analysis, their product positioning in the market and a small part covers some other management related topics. The planning part of this report consists of both short term and long term plans for their running of a business. Organizing is the way the company is organized with reference to hierarchy which shows the chain of command. Leading is the leadership styles used at Bake Parlor. Controlling includes the policies which the company adopt to control its employees. SWOT analysis is listing of the Bake Parlor strengths, weaknesses, opportunity and threats, whereas PEST analysis covers political, economic, social and technological factors that can affect running of the Bake Parlor BCG matrix helps them identify their product positioning in the market, which helps them in making strategy accordingly. The other management related topics includes motivation factors which helps Bake Parlor to motivate its employees. Major stakeholders and the culture of the company are also discussed as a part.

Introduction of Bake Parlor

Bake parlor is a brand name of Rasul Group Industries; inaugurated by Mian Ghulam Hasan in 1926. It is the family business of Mian Ghulam Hasan. The management techniques, quality standards and the passion for growth in the local market have propelled them to the top of the Pakistani food industry. The product Diversification and market development strategies have enabled them to grow tremendously within a decade. Today the product portfolio of bake parlor consists of flour; confectionary, vermicelli, a complete range of pasta items (Marconi, spaghetti) and snacks. Lites, which are packaged chips, are the only products provided in the snacks range Bake parlor have one of the largest flour mills in Karachi and in encouraging environment they utilize their setup to import wheat through international links. They practice both horizontal and vertical integration by owning all the entities from flour mills to trading companies. More than 1000 employees constitute the workforce of bake parlor nationwide. Bake parlor has a thriving culture of teamwork to accomplish specific tasks and co-ordinate with other departments; this approach includes specific crossfunctional teams and permanent teams. Bake parlor believes that their employees are the main differentiating factor and the effective use of the latest leadership and management techniques are important in making a professional and corporate environment. Bake parlor believe that they have the advantage as they envision their organization as an integrated whole with all departments interconnected and working in combination and harmony with each other. Market penetration and development are there first priorities at present and their product portfolio is believed to have a global audience, to tackle this issue they have established a import and export department to explore the foreign markets for product positioning strategies. Bake Parlors current installed production capacity and expected additional increments mean that they are in an ideal position to expand into foreign markets while still providing top quality services to local consumers in Pakistan. They believe that a global food crisis could occur in the near future and that their job, as a responsible corporation, is to protect customers by developing strategies that maintain the standards of their products at affordable prices. However economic stability must persist for this to take place. Since they are a large wheat producer and major player in the food industry they recognize their responsibility lies in protecting consumer standards, where
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environmental scanning is given top priority. In doing so they have successfully acquired membership to ISO 9001, FDA and SFA, in order to ensure that good quality foods are provided at low prices. Change and innovation are daily goals that they hope will advance the food industry they operate in into greatness.

Vision
To attain sustainable competitive advantage at a global front by associating Bake Parlor with nutritious, scrumptious and diversified food product range.

Mission
Bake Parlor offers more for less by providing a diversified range with premium quality and extra quantity at an affordable price. We consistently monitor our ingredient mix by analyzing our customers eating habit so as to provide food that is easy to cook and fun to eat. We acknowledge the global commodity needs and consider it our responsibility to make the most out of limited resources through optimization. We decipher opportunities and make most out of them. Our operational efforts are subject to continuous improvement and our success trickles down to our customers, employees, business partners, community and environment and that is how we aim to sustain it.

Core Values
Integrity: We are always true to our promises and committed to deliver. Passion: To establish Bake Parlor as an internally recognized brand by delivering superior values and ensuring customer satisfaction. Cohesion: we are an integrated whole, with harmony and cooperation as the basic business foundation. Innovation: Explore the farthest boundaries of the nutritious diet plan.

Planning

Planning

Planning is a process in which the organization defines goals and objectives and thus making an overall strategy to achieve those goals with the coordination of people in the organization. Therefore planning is done in Bake Parlor in a way in which they first set out the objectives and goals which they want to achieve and then they make strategies to achieve those goals and objectives. Secondly the goals are set taking in to consideration the factors of production available to them. However these plans can vary according to the situations being faced by the economy or by Bake Parlor and are usually set for one fiscal year. There was one question that we were very eager to ask was that SHAAN and NATIONAL made plans up to 10 to 15 years, then why dont you. He said that time never remains the same as told earlier Pakistan is very unpredictable and it is difficult to organize such huge plans. He then said that we focus on yearly plans because they can be executed perfectly to a great extent.

GOALS:
Goals are defined as desirable outcome which the want to achieve in the upcoming years. According to the manager of bake parlor, one of the major goals of the Bake Parlor is to remain a market leader in the food industry in Pakistan. They have diversified into the production of pasta, where they face competition from Kolson and Crispo. However they remain the market leaders with more than 50% market share and aim to maintain this in the near future. Their other basic short term goals are to deliver low priced products to the end consumer by cutting their costs of production and improving quality. Another short term goal of theirs is to increase employee motivation because they believe that their workforce is one of their most important assets. They do not have any affiliations with any political parties and therefore aim to maintain friendly relations with any government that comes into power.

Another desirable long term goal of theirs is to increase the number of products in their snacks range, as they currently have only one product in this range which is Bake Parlor Lites, a potato starch product.

Strategies:
With the aim of providing better quality products to their customers Bake Parlor has adopted certain strategies that they hope will help achieve this aim. They have hired Mehboob Khan, a respected professional chef who helps them with the innovation of their products. This has also helped their customers remain brand loyal with to products. To cut their cost and provide their customers with low and improved quality products they have installed the latest Italian food plants at their factories and have adopted quality assurance and control techniques such as quality circles. Since their employees are their biggest assets they aim to keep their workforce motivated by giving them both financial and non-financial benefits. For example, employees receive fair wages and there is job rotation at the production line. They also recognize the employees efforts which in turn increase job satisfaction. They are carrying out market research to determine what products to add to their snacks range. The market research includes determining their customers demands so as to introduce new products into the market that meet consumer needs. Their main competitors for their snacks product Lites is Kolsons Slanty, however due the decrease in the market share of slanty there are trying to capitalize on this by introducing new flavors and expand their distribution channels.

Basic Rules and Procedures:

According to the Managing director of Bake Parlor Mian Mehmood Hassan they do not have fixed procedures or rules that they always follow. It varies according to the plans they make. One basic procedure they always follow is the carrying-out of a SWOT analysis. They look at all their strengths, weaknesses, opportunities and threats and then according to that make rules and procedures which are followed in the Bake Parlor. They also take advice from the Bake Parlor management team in planning. They set out the plans which they want to achieve in the coming year and put them forward to the management team. According to these the management does a few brain-storming sessions with both the upper level management and the middle level management. With the ideas born out of these sessions various changes are made in the initial plans.
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In every private limited organization around the globe the final decision rests in the hands of the CEO of the organization. The same is the case at Bake Parlor. The final decision to implement a plan or the approval of a plan is in the hands of the Chairman of Bake Parlor. Any decision made by the Bake Parlor Chairman can be challenged by the GM of Sales and Marketing Mr.Rab Nawaz, GM of Finance and Human Resources Manager Mr. Saeed. This is because they are the main people who are dealing with the sales and finance of the company; and thus they have a clear picture of the company and its performance. Therefore if they think that the plans contain certain aspects which are hard to achieve or are not in favor of the organization in the current time period they have the authority to challenge the decision at Bake Parlor. Once the plans are finalized at Bake Parlor, they have certain channels from which the plans pass through for implementation. The Chairman tells the final plans to the Managing director, so that he may convey the plans to those at lower levels under him (GM of Sales and Marketing, GM of Finance, the HRM and the four other directors) who then further convey those plans to their lower management in Bake Parlor. Therefore this is the process through which the plans are implemented in Bake Parlor.

The way the plans are implemented at Bake Parlor illustrated:

CEO

Managi ng directo

Direct ors
GM sales and marketi GM finance and HRM

Lower level under

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Workforce:
Whenever possible, the need for employees is usually satisfied by the concerned departments by themselves. The department looks for possible candidates by market research which they carry out themselves. If a suitable candidate is not found they then relay their need to the HRM department. If however, the concerned department finds a suitable candidate, he or she then goes through the hiring process which the HRM department conducts. This includes interview and shortlisting. Otherwise HR searches the market for people that fulfill the requirements. Afterwards an interview is taken through which they short list people according to their needs. They also check the market background of these people during this time before hiring an individual. This is how workforce planning is carried out at Bake Parlor.

Raw Material:
Bake parlor owns flour mills therefore whenever there is a need for raw material it is efficiently and accurately met, for example the Bread Division manager makes sure that they have enough flour available at the Bake Parlor flour mills to fulfill their requirement for the production of bread. Otherwise they meet their needs by importing the raw materials from abroad (Germany, Holland, Denmark). Usually they make sure that the raw materials are available on time for the production process so that no delays are caused in the production process. Similarly the pasta, snacks, flour and sauces divisions managers carry out planning for raw materials in a timely manner to ensure a fluid production process. They have proper storage houses where they store their raw material and from where they are also provided to Production Department. A proper computerized inventory system is in place to minimize the risk of theft of raw material. When raw material stocks fall to a certain level an order is placed to fulfill future requirements of the business. This is how raw material planning is carried out at Bake Parlor.

Production:
Bake Parlor plans for its production in various ways. They look at sales trends and according to these they carry out their production. The market information they gather from retailers helps them in the planning for the production process. By identifying their demand through these methods they produce enough to meet these demands. Apart from this, the use of automated production lines helps them to carry out production in an efficient and effective manner. Quality checks are carried out at different phases of the
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production process. They aim to cut costs by reducing wastage and ensure that the best quality products are produced by the use of these quality checks. After the products are completed they are sent to the storage houses where accurate inventory checks are carried out. An inventory report is then sent to the Finance Department. The finished products at the storage houses are then sent to Bake Parlors own distributor chain who further distributes the products to the retailers. This is how Bake Parlor plans for the production of their goods till they are delivered to the retailers.

Finance:
Bake parlors planning for finance is carried out by the finance department. They estimate the need for finance accordingly. For the purposes of finance they usually take loans from selected banks, which have low interest rates (Standard Chartered, AlHabib). The finance department checks the need for finance at a macro level every quarter, and every month at a micro level so that the company does not face any shortage of finance when there is need for it. To get finance for their LC they also use banks which offer good terms and conditions at low interest rates. They also have to make sure that all their finance does not come in the form of loans from the bank as these increase their interest rate expenses and create cash flow difficulties for the company. Therefore they also generate finance in the form of new capital invested by the owners and by reinvesting retained profits.

Capital:
Bake Parlor is a private limited company and therefore they cannot sell their shares at the stock exchange for additional capital. Therefore if they require additional capital, the first source is internal, i.e. the directors of the Bake Parlor company. In case of any huge capital requirements they plan to obtain loans from different banking institutions.

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S.W.O.T. ANANLYSIS

Bake parlor has been in the food industry for a long time. With the passage of time it has grown into a strong firm and these days it has a lot of competition in the local market. Here we shall be discussing about its strengths, weaknesses, opportunities and threats in short we shall be taking its S.W.O.T. analysis.

STRENGTH:
First of all they have their own flour mills so they can use a proper quantity of flour in their products as per their requirements. This makes them completely independent and can therefore work freely.
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They are also one of the pioneers in the Pakistani food industry to use Italian Computer Technology (I.C.T.). This technology ensures them the best quality of the product and it also seals the perfection as well as quality of food. The decision system is imposed to the heads. There is no communication barrier between the top managers and the first line managers. In short there is no transparency between the employees and the managers and everyone has information what is going on Man power is the X factor for their success. As they have lots of work on the same hand they have distributed the work properly to get the maximum output. They have a great distribution network which is spread up to 350-400 retailers 7 days a week. Their brand ambassador is the leading chef in the market. He endorses and markets their products in a fashionable way. They have the best Italian pasta range which makes them the leading Italian food range in the Pakistani food industry.

WEAKNESS:
As they are not the only operating industry in Pakistan so ultimately they cannot be the price maker. There is a price barrier so they cannot set the prices themselves Economic and political conditions can play an important role because these conditions are unknown and can occur any time mysteriously.

OPPURTUNITY:
If eating habits change then it can be an opportunity for the firm in any of their product range.

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As they hold a position in the food industry they can also alter prices of some products to a certain extent. This can be the only possible opportunity according to our research.

THREATS
Multinational companies can be a threat to this firm because as new companies enter, they can certainly introduce new products, which can again bring competition in the market that can hurt their sales and thus profit. Banking interest rates can be a major threat because all their transaction are through the bank.

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BCG Matrix

Bake parlor deals in a variety of products such as an Italian Food Range, Recipe-mix Range and a Pasta food Range which includes spaghetti, noodles, lasagna and macaroni. Apart from these product ranges they also deal in a Vermicellis Range, Ketchup Range, Vinegar Range, Syrup Range, Lites Range and a Bread and Flour Range. Therefore according to Bake Parlor their product ranges lie in different sectors in a BCG matrix.

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STAR (High Market Growth and High Market Share)

Italian Food Range, Recipe mix Range and Pasta food Range are the star product ranges for Bake Parlor. This is because they have more room for market growth as compared to other products of Bake Parlor. Firstly, these products have a high demand in the market and therefore generate a large amount of cash for Bake Parlor. Secondly, as these products have high potential market growth they need more investment in their promotion/advertising to make them an established brand in the market because of which the cash is net out.

CASH COW (Low market Growth and High Market Share)

Bread and Flour, Ketchup and Syrup Ranges are the cash cows for Bake Parlor. This is because these products have passed through the cycle of star products and the potential market growth has decreased significantly. Therefore these products have already created their names in the market and give Bake Parlor larger returns as compared to their star products. However according to the Bake Parlor GM Sales and Marketing Rab Nawaz the profit which they get from these cash cow products are invested into the research and development of other products and also into those products which lie in the question mark category.

DOG (Low Market Growth and Low Market share)

According to the GM of Sales and Marketing Bake Parlor they do not have any dog product till now. A few of their products lie in the category of question mark but none of their products lie in the dog category and need to be closed down.

QUESTION MARK (High Market Growth and Low Market Share)

The Lites Range lies in the question mark or problem child category for Bake Parlor. This is because this product has the potential to grow but because of the increasing cost of the product and other factors it has a low market share. Therefore, according to the GM of Sales and Marketing, Bake Parlor are thinking of investing more finance in the product to find ways to cut its price and make it competitive in the market. However he also thinks that it can become a cash cow product for their company if they are successful in their strategy.

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PEST Analysis

PEST analysis determines the political, economic, social, and technological factors that can affect the running of Bake Parlor Company. According to bake parlor management, PEST analysis is the examination of the external macro environment in which the organization operates in. The increasing importance of environment and other external factors has given rise to the importance of the PEST analysis. The Bake Parlor PEST analysis is as follows:

Political and legal factors:

The political and legal factors that could affect the Bake parlor company are as follows: 1. Stability in the economy 2. Employees Laws
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3. Taxation 4. Environment protection laws 5. Political situation Bake Parlor Company is operating in an economy which has become unstable in recent years. However Bake Parlor takes it as a challenge and feels motivated to work even harder to achieve its desired goals and objectives. They formulate their work and strategies according to the current economic situation and the trend of people purchasing power in Pakistan. Bake Parlor Company is not involved in any ethical work with its employees. Thus they are not affected by employees law by the government. Bake Parlor restrains itself from political issues in the country and it does not have any type of affiliation with any political parties. This keeps them away from any and all political issues which can affect their business. Bake Parlor is consistently paying off taxes to government and all their activities and transactions are audited, which keeps the government away from interfering in their business. Bake Parlor is providing the country with so many of basic services that it does pollute the environment. In return they try to cut down the harm to the environment and pay government proper taxation for harming the environment. This keeps the government and other stakeholders away from the company activities.

Economical Factors:
The inflation rate in Pakistan is increasing rapidly, thus the purchasing power of the people is decreasing. Therefore Bake Parlor is finding ways to cut their prices down in order to satisfy consumer needs at lower prices and to survive in the market. Bake Parlor also takes government economic policies in to consideration, in order to take a correct step to spend or save for the future time period.
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Social Factors:
Bake Parlor is very much concerned for the social welfare of the environment. Therefore they are in favor of a green environment. They look towards making Pakistan a green place, because of which they are trying to cut down the waste disposal in to environment. Some of the social works apart from go green is that they do offer their products to the poor people of Pakistan. According to the GM sales and marketing they recently contributed some social work for childrens at Darul Sakun by distributing free of cost company products.

Technological Factors:
Technology plays an important role in company success or a failure. Every industry in todays world is dealing with technology. Thus Bake Parlor has also adapted to the technological change to survive in the market. Major technologies used are as follows: Italian computerized technology in machinery. Internet Telecommunication Faxes

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Organizing

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Organizing:
Organizing is one of the most important activities of this company. From production to finance as well as distribution, organizing is very important. It is one of the key roles performed by the company, because proper organizing leads to proper functioning of the business which in turn results in profitable operations Bake Parlor is one of the current food industries operating in Pakistan. Its organizational culture is a mixture. It fashions itself as a traditional and learning organization. Bake Parlor organizes its work on daily basis. As it is an organization with no communication barriers, anyone can share their ideas freely without any hierarchical barriers interfering in the process. The plans made in this company are on a daily basis because of the environmental uncertainty prevailing in Pakistan. In Bake Parlor we observed an organized environment. The basic tools required for maintaining such an environment according to the managers are authority, openness and a positive approach. This type of an environment has great benefits on the company and the overall morale of the workforce. One of the most important tools used in this environment was appreciation. If any goal is achieved by someone his or her work is appreciated by the awarding of bonuses. An organized environment always brings positive change to an organization. At Bake Parlor there exists a well-organized environment which they believe helps maintain efficiency as everybody works as a family-unit. In an organized environment such as Bake Parlor there is a proper hierarchy in place and if a problem occurs it goes to the top management. One of the problems that may occur at this point is that the problem may take some time to be solved. However, an organized environment is beneficial because each and everything is monitored and problems are solved eventually if not immediately. This is the core reason that why an organized environment is necessary. After the approvals of the CEO and M.D. the organizing plans are approved by the General Managers of every department. After the plans are organized they are
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forwarded to the departmental heads and employees. If anyone has issues with the plans he has the authority to raise his concern to the relevant people. To maintain such environment they hold monthly meetings where all the issues are discussed thoroughly so that they can come up with a suitable solution. The annual meeting is headed in Dubai under the managing director where various new ideas are discussed in order to improve the company and improve its mindset.

Organization Structure
Underneath the Chairman, a managing director is in place that every director, an internal auditor and a group financial controller report to. There are 4 directors in all, not including the managing director and are all brothers. One of the directors is in charge of the Bread, Atta and Ketchup divisions of Bake Parlor. The heads of these divisions are the Bread Production Incharge, Atta Production In charge and the Ketchup Production Incharge respectively. The Atta Production Incharge has two assistants who both have clerks underneath them and for whom they are responsible. The Bread Division is further segmented in to the departments of Mixing, Oven, Molding and Packing. There are also helpers in place to be used by all of these departments. There is one Department manager who is in charge of all these departments and is responsible for the helpers as well. In the Ketchup and Sauces Division there is a Section Incharge underneath the Ketchup Production Incharge who is responsible for the Machine operator and the junior and Senior Helpers that are there as well. The General Manager Factory has two divisions which fall under his jurisdiction, which are the Pasta and Lites Divisions. He reports directly to the Managing Director as well. The Pasta Division much like the Bread Division has been segmented into different departments. These include the Dispatch, Inventory, Maintenance and Administration departments respectively. There are supervisors and a Production Incharge who supervises the workers employed in these departments. Bake Parlors Human Resources department includes an Administration/Human Resources manager who has an assistant in place for administrative purposes. The Administration/Human resources manager reports to the Group Financial Controller. The Group Financial Controller is also responsible for the Commercial, Finance, IT and Material Managers who all reports directly to him. All these managers have people under them for whom they are responsible. For example, the IT manager has a Software Engineer and Hardware Technician. Together they comprise the IT department of Bake Parlor.

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The Finance Manager on the other hand has two Assistant Managers, both of which have further Accounts Officers underneath them.

Corporate Culture and Behavior of Bake Parlor with Its Stake Holders
The culture of Bake Parlor is formal in nature. Therefore the behavior adopted for its stakeholders is also a formal one. Bake parlor, in ensuring its formal culture, makes sure that all transactions the business does, whether related to sales, purchases or finance is done formally. This has helped Bake Parlor in maintaining their name in the market. As Bake parlor has a formal culture they make sure all its stakeholders are content with them. If we look at its relations with different banks, we see that Bake Parlor makes sure that they pay their bank interest on time so that they can easily get additional finance at lower rates in the future. Taking into account how they maintain their relations with the government as a stakeholder, they make sure that the appropriate accounts are audited and approved by their head. And according to the audit they pay government the comprehensive tax in order minimize government intervention in their business. Now if we look at the suppliers of Bake Parlor, we also see the formal culture being applied. They make sure that they pay their suppliers on time in order to make sure that the raw material supplies are also received on time. A healthy relation with creditors has helped in building a good image in the market and helped Bake parlor in different ways. For example, any urgent need of additional raw material can be ordered if available. The culture with its employees is semi-formal. They can be penalized for unethical work, however in order to increase their motivation and productivity they get both monetary and non-monetary benefits.

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Stakeholders:

Like any business Bake Parlor also has its fair share of stakeholders, people that are affected by the operations of Bake Parlor. Stakeholders include the government, customers, suppliers, media, workforce, competitors and the community. Since Bake Parlor is a private limited firm the shareholders are replaced by the directors of Bake Parlor as important stakeholders of the business. Therefore the directors themselves become important stakeholders of the business daily activities and have double the stake in the affairs of Bake Parlor than regular directors. Another aspect of Bake Parlors directors that is different from public limited companies directors is the aspect of retaining control over the business. As stakeholders, usually directors have to worry about other shareholders taking majority share in the company and electing new directors. However in the case of Bake Parlor this is not possible since there are no other shareholders apart from the directors themselves. The government which is another stakeholder of Bake Parlor is concerned about the tax revenue it receives from the profitable operations of the business. Therefore government is concerned about all revenue producing endeavors that Bake Parlor undertakes and that all of these are accurately presented in the companys year-end financial statements. It is also important for the government to ensure that Bake Parlors operations do not violate any national laws such as the black market of flour. As Bake Parlor deal in flour they make sure that they dont participate in any unethical activity which would allow the government to interfere in their operations. Bake Parlor one of the major sate holders is its competitors. They make sure that all the steps taken by Bake Parlor competitors are fully analyzed and step are taken accordingly to that. The customers of Bake Parlor want to receive good value for their money and to this extent Bake Parlor aims to deliver. Their mission statement Bake Parlor offers 'more for less' by providing a diversified product range with premium quality and extra quantity at

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an affordable price is a good example of how Bake Parlor aims to satisfy its customer stakeholders. Bake Parlor has always been positive towards the community. They always try to reduce their pollution wastage which could harm the local community of the area. Apart from that they try to generate employment in the local community. Bake Parlor has more than 1000 employees employed at their organization. However it concludes that they have tried to maintain good relation from the start of their business, because if they harm the community or have poor relation with them, in turn they can cause failure of Bake Parlor organization by boycotting their products or by holding strikes. Media is also one of the important stake holders for Bake Parlor, as it can help in creating an image of a business at a same time can lead to a failure of a business. They take care that they do not indulge in any unethical work with any one which would allow the media to interfere in the business. However apart from these concerns, they use the media as a tool to promote their products and thus maintain good relations with them. Bake Parlor also has to take into consideration its workforce. As discussed earlier Bake Parlor uses motivational techniques it deems fit to be used in a particular situation. The workforce is their biggest asset which they believe has allowed them to progress to such a well-built organization. Therefore they make sure that the employees have a well-organized environment to work with and that all their legitimate demands are fulfilled to help increase their motivation level.

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Motivation
Motivation is a technique which every organization around the globe uses to increase the enthusiasm and interest of workforce. Bake Parlors management employs what it terms as bookish concepts to their motivational strategies. This means they usually try to practically apply any and all motivational theories that they feel will be appropriate to a particular situation. When dealing with employees they try to motivate the employees by financial motivators which include bonuses to the employees of Bake Parlor on their performances and giving them respectable wages. Other than the financial motivators they believe more in the use of non-financial motivators to encourage their employees. These include appreciation of the employees on doing a good job, this in turn causes employees feel job satisfaction and remain loyal to the Bake Parlor organization. To ensure that the employees dont feel alienated at the production line department, they apply job rotation technique to improve the productivity of the employees and create an appropriate and friendly working environment. Team working is also applied at the bake parlor organization in order to foster a healthy relationship between employees, because according to the managing director of the company they feel the biggest asset they own is their workforce. According to the managing director Mian Mehmood Hasan The healthier the relationship is between employees; more successful our organization will be in term of performance and success. Obviously the most effective motivational tools that any manager possesses are financial reward systems. These are also employed at Bake Parlor to motivate employees to do their jobs with more enthusiasm. Different employees are reimbursed differently for different skills that they employ in the organization and therefore the financial motivators used for them are also different. For the sales person they have a basic salary and a commission which is given to a sales person for going beyond their
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target, to motivate them to sell more of Bake Parlors products. However this is not applied for employees at higher levels in the organization. Bake parlor has a good pay policy and therefore financial motivators do not work as effectively in the case of higher level management. Therefore they are motivated by giving them a feeling of job security and by giving them a proper status and independence in the organization. However non-financial motivators do not end here, if they have been performing well for many years they are also given promotions in the Bake Parlor organization.

Leading

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Leading Policies
Bake parlor has developed a history of enterprising excellence ever since its inception in 1926. Their management techniques, standards of quality and passion for growth have moved them to the top of the Pakistani food industry. Their product heterogeneity and market development strategies have enabled them to grow tenfold within a decade. According to the CEO of Bake Parlor: I consider myself as a leader and as a company head. It is my prime duty to recognize the prevailing morale of the workforce and motivate people to achieve high levels of performance in alignment with the overall business goals. This is essential in gaining a competitive advantage. As a traditional organizations head it is believed that the company heads only concern is revenue but I believe through what I have studied, that it is imperative to run an organization like a team and family. Thats why I wanted to make Bake Parlor a learning organization too. We do not have a large numbers of employees but I believe that a learning environment in an office or at the production site will definitely help us to grow and better our organization. Bake Parlor strongly believe that their employees constitute their main differentiating factor and that effective application of the latest management and leadership techniques is essential for creating value in the corporate environment. Bake parlor give good opportunities to employees and envision their organization as an integrated whole with all the parts acting in conjunction and good will with each other. Bake parlor knows their social responsibilities and try to fulfill them as much as they can at their factories and in their offices. Bake Parlors CEO strongly thinks that every manager should have leadership qualities that lead the organization in to a better future.
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Leading plays a very important role in the success of an organization. A good manager who is a good leader is necessary for every organization so that their employees can work effectively and efficiently. Managers at Bake Parlor believe that there should be open discussions about issues with employees in order to lead effectively.

The leadership qualities that are inherent in all managers at Bake Parlor are as follows:
1. Reinforcing contributions and achievement:

Managers always take timely ,positive and specific feedback to employ for the better work
2. Developing employees:

By providing opportunities for acquiring or enhancing desirable knowledge, skill and abilities.
3. Encouraging two-way communication:

Seeking input from employees about products and their qualities and acting on that input. 4. Acting as a positive role model: Executives and managers of the company talk positively to their peers, about the organization, about the customers and about their products. 5. Displaying emotional intelligence: Managers are always ensuring that physical reactions, body language, and personal statements promote constructive dialogue among sub ordinates, peers and superiors.
6. Facilitating positive interactions among employees:

Encouraging a pleasant atmosphere and reducing conflicts. 7. Maximizing employee performance: Managers make sure that tasks are given to those employees whose capabilities are sufficient for completing the tasks, and giving emotional support that matches employee needs. 8. Coaching employees:
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Managers provide advice about individual performance, goal achievement and career development.

At Bake Parlor managers possess the ability to recognize whether or not their subordinates are satisfied or not, because unsatisfied workers produce unsatisfactory results. It is a must that managers take constant feedback from employees whether at the office, mill or the factory. During this process the information gathered gives the manager an idea of how to go about satisfying the employee if he or she seems unsatisfied. Therefore mangers learn whether the wage rate or environmental conditions etc. are the root of the problem or not. It could be that someone is having domestic problems and managers at Bake Parlor are also willing to help out with these if they can. For example, if some employee has a death in their family Bake Parlor ensures that they help out by covering any costs and pays the employee for the days they do not work, this is of course if and only if the employee wants help from Bake Parlor and brings it to their notice.

Leadership Style
The leadership style of Bake Parlor is primarily democratic in nature, i.e. most employees are free to discuss issues etc. with their superiors. However there are some decisions that come from the top that most probably cannot be challenged by the lower level employees. Nevertheless, the management aims to involve the employees on a conversational level on decisions being taken. This process only works due to the fact that the Bake Parlor management has good communication skills and understands their workforce well. The democratic process is in place here because the management believes that the employees have much to contribute because of all the work experience that they possess at a particular level and also because it increases the staffs motivational levels to do their job more effectively.

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CONTROLLING

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Controlling policies
At bake parlor the organizational structure is highly decentralized. The general managers appointed have high level of authority in their departments; Rab Nawaz for sales, and marketing and Saeed for finance and HR. They have been given authority to control their own departments respectively, keeping in mind the boundaries and policies of the organization. There are no legal framed controlling procedures that control employees. The general managers have the authority and have to devise ways as to how they have to control employees. However the doors of the chief operating officer and founder of Bake parlor are always open for the general managers who are always welcomed on seeking advice relating to the controlling side of the department. Many a times the chief operating officer also points out and suggests ways during weekly meetings in which he feels controlling can be made more efficient. The employees are controlled according to the general managers rules and regulations. If newer scenarios arise then seeking advice from the COO is a common option general managers adopt to maintain a controlled environment. Hence there is an indirect type of controlling that prevails through the organization. Also since the organizational structure is de-centralized there are no tools that are used in controlling. The main tool that is used for controlling is the internet mailing system. Through the emails the board of directors and the general manager are directly connected which is the medium or you could say tool that aids in the controlling process. If need be warnings, notices, answers to specific controlling ways are commonly sent out through the email system that immediately gets the message across and brings about in a change in controlling the employees/issue. Also control motivates employees by keeping a certain target to receive a bonus. This way the superiors not only motivate the employees but keep them controlled they are all like family.
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Controlling usually helps organizations to prevent or minimize mishaps. However, at Bake Parlor there are no jotted-down contingency plans. The general managers and board of directors try and plan to avoid mishaps as much as possible. Taking extra precautions and fewer risks keeps them away from the mishaps that may occur. However it is inherent in the nature of businesses that anything can happen and so for that contingency plans are beneficial in keeping the company safe. If a catastrophe does take place which is extremely rare then the board and general managers sit together and come up to a solution of how to tackle and control a certain problem. The reason there is no set contingency plan is because Bake Parlors decentralized organization feels sitting and coming up with a solution with diverse and multiple opinions is the best way to tackle a problem. Bake parlor does not have a specific controlling method they use. Some managers may not even be aware of the types of controlling that they are using. The cultural, decentralized structure uses a bit of feed forward control, concurrent control and feedback controlling methods. The board and general managers make use of the feed forward control when they have joint meetings to set targets, resolve issues, forecast ahead etc. Concurrent control comes into action while an activity is in progress. This type of control ensures whether employees in the production lines are working efficiently and effectively and whether they are producing the right good in the right quantities and qualities. Lastly they make use of feedback control methods much more compared to the other types of control. Feedback control deals with outputs and gives them feedback when they require it upon a certain good or product.

Security Policies
Video cameras are installed in all the offices and the production factories of Bake Parlor, which covers the whole area inside the offices and factories, through which the activities going in the boundaries of Bake Parlor are monitored. Managing Director has direct camera coverage of all the factories and offices in his room, from where he looks at all the activities. Security Guards are their serving 24 hours a day to provide the security to the management of the Bake Parlor. Proper working equipment for production line workers is provided for their safety.

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Work ethics in Bake parlor

In bake, parlor work ethics are very string. The reason of high work ethics is to provide 100% work as well as customer satisfaction. Bake parlor use best quality raw material because if they dont give good products then gradually the sales would go down which could ruin the companys image. In Bake parlor, they consider their employees as a very important asset. They are provided with job satisfaction so that they work diligently. When females are hired, they are asked to follow certain dress code so that they maintain the companys decorum. Dress codes also stand with men. In Bake parlor when we were talking with the M.D. about work ethics he said that they recently fired one of their employee because his attitude with the female employees was very uncouth and was thus fired. One can clearly say that in Bake parlor proper work ethics are followed. This company has been in the market for a quite long time so it tries its level best to maintain discipline. They also provide their employees with fringe benefits so they always stay motivated and always work to their fullest

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Product List

Bakery products

Bread Fruit bun Tea Rusk Burger Bun Sheer Mall Hot Dog Single slice

Italian Food Range Noodles and Spaghetti

Macaroni
Elbow Macaroni Big Elbow Long macaroni Small Elbow

Hot and sour Noodles Chinese egg noodles Fancy Spaghetti Fajita Spaghetti
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White Spaghetti Kajun Spaghetti African Spaghetti Khawsue Lasagne Pasta Green

Tikka Macaroni African Spice Macaroni Thai Green Biryani Macaroni

Sauces and Ketchup

Vinegar Soy sauce Tomato ketchup

Vermicelli

Roasted Vermicelli Pasta Cut Color Vermicelli Traditional Vermicelli

Atta
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Super Fine Atta Fine Atta

Lites
Salty Veggie Tomato ketchup

Other Products

Suji Maida Paratha

Bibliography
http://www.bakeparlor.com/site/ Management principle, 10th edition by: Stephen P. Robbins, Mary Coulter, Neharika Vohra. Managing Director of bake parlor (Mian Mahmood Hasan)

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Gm Sales and marketing Bake parlor (Rub Nawaz)

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