www.reportsmba.

com

Relation with Pepsi Company

(International)
Pepsi Company is listed in New York Stock Exchange. In
Pakistan, there are 10 units of Pepsi Company. Shamim &
Company is franchised by Pepsi Company on these terms &
conditions:
Shamim & co., has got a quality standard and has been
provided parameters to maintain and improve quality by
Pepsi Company.
Territory is fixed by Pepsi Company:
Pepsi Company is responsible for advertisement of its
products.

Profile of Shamim & Company

History:
Shamim & Company was established in 1967, as
private limited company. It started production in 1968. At
first it was known as 7-up factory as 7-up was its initial
product.
Shamim & Company was named after the nephew
of
Allah Nawaz Khan Tareen, the real owner of
Company. Currently Alamgir Khan Tareen is its Managing
Director & Chairman who is the son of Allah Nawaz Tareen.

Territory:

Shamim & Company covers the widest territory in

Pakistan. It does not only cover Multan Division but the areas
of, Rahim Yar Khan, Sahiwal and even Quetta are also
included in its territory.

Products:
The first product of Shamim & Company was 7up. But now the Company is producing 4-products:
1. Pepsi Cola
2. Mirinda

www.reportsmba.com

www.reportsmba.com
3. 7-up
4. Teem
Mirinda Green was also its product but it failed to
get adequate response from customers as it was not
according to their taste and there was no proper publicity or
advertisement for it.

Product Designing:
All products have been designed
by parent company i.e. Pepsi International. So Shamim &
Company is not involved in product designing.

Main Operation:

Operation is a process that

transforms inputs into finished goods and services. Shamim
and Company has its main operation as:
To convert empty-returned bottles into filled bottles and to
distribute them to retailers.

Main objectives:
The two main objectives of Shamim
& Company are:
1. To provide the customers, quality-products,
along with maximization of profits.
2. The continuous improvement in quality.

Unique features of Shamim & Company:

The Company has following distinguishing features:

Shamim
&
Company is
the
biggest
soft-drink
manufacturer in Pakistan.
Shamim & Company covers the largest area/territory
among all Pepsi Companys franchisees in Pakistan.
Shamim & Company has won quality awards at
international, asia & national level.

Departments:
The main departments of Shamim &
Company are:

www.reportsmba.com

www.reportsmba.com

Production Department
Finance Department
Sales Department
Shipping Administration

www.reportsmba.com

Marketing Department
Personnel
Accounts Department

www.reportsmba.com

Project Management
Main
Activity
A
B
C
D
E
F
G
H
I
J
K

Description
Prepare feasibility of project
Fulfill legal requirements for
being franchised by Pepsi Co.
Select administration.
Select site, capacity and do site
survey
Select equipment/plants.
Prepare final construction plans
and layouts.
Bring utilities to site
Purchase and take delivery of
equipment.
Interview applicants to fill
position.
Construction of building
Installation of equipment

www.reportsmba.com

Immediate
Predecesso
rs
A
A
B
D
D
D
E
C
F
G, H, J

www.reportsmba.com

Operations Strategy
Pepsi Company international and its franchisees
basically follow consumer driven operation strategy i.e. the
strategy which focuses at consumers needs & wants.
This strategy begins which Market analysis:

Market Analysis:

The main consumers of Shamim &

Company are:
Youngsters
Middle Social Class

So marketing compaign of Pepsi products

focuses on these two mentioned segments. The direct
customers of Company are retailers and after it consumers
are indirect customers.
Coca Cola Company is the major competitor of
Pepsi at world-level, producing the products of Coca-Cola,
Fanta & Sprite. Similar is the case with Shamim & Company.

Corporate Strategy:
Goals:
As earlier discussed, the main objective or goal of
Company is to satisfy the customers needs along with
maximization of profits.

Core Competencies:

The core competencies of

Shamim & Company are:
Well-trained & experienced workforce.
Systems & Technology.
Financial & market know-how of its managers.
Well supportive facilities.

www.reportsmba.com

www.reportsmba.com

Competitive Priorities:

Shamim & Company is

producing standardized products. So competitive priorities of
Shamim & Company are as following:

Cost:
Due to standardized products, Company gives
priority to minimize the per unit cost & total cost as well.

Quality:
Shamim & Company wants to maintain a
consistent quality of its products i.e. the product, which is
produced here, must meet the designe specifications.

Time:
Shamim & Company meets its delivery-time promises
i.e. The Company pays most attention to delivery -on- time,
to satisfy customers & retailers needs on the time, which
they want.

Flexibility:
Since Shamim & Company does not focus the
unique demand of customers & products are standardized,
So Company works for volume flexibility i.e. Company is able
to accelerate or decelerate the rate of production quickly to
handle large fluctuations in demand.

www.reportsmba.com

www.reportsmba.com

Flow strategy:

There are three possible flow strategies, which an

organization can adopt.

1. Flexible flow strategy:

Under this strategy,
employees & equipment are organized around process.
This strategy is for low-volume or customized products.

2. Line flow strategy:

Under this strategy
equipment & employees are organized around the product
or service. This strategy is for high volume or standardized
products.

3. Intermediate flow strategy.

The strategy is
mixture of above both strategies but with some dominant
flows. Product or service volumes are relatively high and
system is capable of handling several customer orders at a
time.

Flow strategy in Shamim & Company:

Shamim & Company work with Line flow strategy where
people & equipment are organized around the product as
product is standardized & high-volume production is there.

www.reportsmba.com

www.reportsmba.com

Strategies based on Flows:

There are 3

strategies based on three flow- strategies.

Make-to-Stock Strategy:
Its for line-flow
strategy & high- volume production.

Assemble to- order Strategy:

intermediate flow strategy. The components
organization but they are assembled on order.

Its for
exist in

Make-to-order Strategy:
Its for flexible-flow
strategy & customized product or services.

Application on Shamim & Company:

Shamim
& Company works under make-to-stock strategy as it holds
items in stock for immediate delivery, thereby minimizing
customer delivery times. This strategy causes the
competitive priorities of low cost & consistent quality for the
Company.

www.reportsmba.com

www.reportsmba.com

Decision-Making
In Shamim & Company major decisions e.g. about
product development or product design or advertisement
etc. are made by its franchiser i.e. Pepsi Company, like
decision for launching Mirinda Green, was made by Pepsi
Company.
The managers of Shamim & Company while making
decisions about the co., use different techniques like breakeven analysis & other software.
Normally the departments make independent
decisions, but for some main issue or major problem, all
departments heads jointly make decisions.

Process
In Shamim & Company resources are organized around
product as Company adopts line-flow strategy. Company can
change production according to demand fluctuations.
Process is same for all products i.e. Pepsi Cola, 7-up,
Mirinda & Teem. No plant is fixed for a certain product. Pepsi
Cola has largest production as it has highest demand among
all products.

Product Switch over:

On the same plant, while switching over
to another product (e.g., from Pepsi Cola to 7-up) the plant is
washed by washing detergent , called TSP.

www.reportsmba.com

www.reportsmba.com

Process Stages:
1st Stage (Getting Treated Water):
Lime, Farris Sulphate (for
iron) & chlorine are added to raw/hard water & it goes in
chemical tank where carbonates and bi-carbonates settle
down, & they get treated/soft water.

2nd Stage (Preparation of Simple Syrup):

Simple Syrup is
made by mixing up sugar into water after poisturization of
water at 85C. After stay for a time period, this simple
syrup is filtered & then cooled down at 19 C. Water is
heated/boiled & cooled down at extreme temperature to
avoid germs-growth at normal temperature like 32 C to 35
C

3rd Stage (Preparation of Finish Syrup):

Now this simple syrup
goes into syrup storage tanks. Concentrate & flavor are
added to simple syrup & it is called finish syrup.

4th Stage (Washing Empty Returned Bottles):

Empty returned
bottles pass through steam under 57 C to 77 C, then
these are cooled down. This process-step takes 45 minutes.
Now bottles are washed by Caustic-Soda, TSP and water.
Now a light-test is conducted for these treated bottles, where
the bottles pass in front of a light.

5th Stage (Filling Section):

Now syrup & treated water come to
Carbo Cooler in which NH3 (Ammonia) chips, are used for
cooling purpose. Co2 gas also comes in Carbo Cooler. After
a flow-mix in Carbo Cooler, the resultant drink comes into
filler, where empty washed bottles are filled.

www.reportsmba.com

10

www.reportsmba.com

6th Stage:
Now bottles come to Crowner where these are
crowned then bottles pass through a light test to have a
check for overfilled, underfilled or any deficiency.

7th Stage:

After passing through printer, the casing of bottles

is made, & at last shipping hand over is there.

www.reportsmba.com

11

www.reportsmba.com

Location
Shamim & Company is situated near MDA (Multan
Development Authority), on the road leading to Nishtar
Hospital i.e. District Gaol road.

Selection of Location

The major factor was proximity to markets ,in selection

of location.

Location Analysis:

The location described above is favorable for Shamim &

Company due to following factors:

1.Market related factors:

Shamim & Company has proximity to its major
market i.e. Multan City which has been declared by
Pepsi Company; The Pepsi City.
This location is very much helpful for Shamim &
Company, in competition also to maintain proper
distribution, to reduce transportation cost & time etc.

2.Tangible factors:
Labour is easily available from villages & city at
normal wages.
No problem is there for supply of electricity.
Most essential raw material i.e. sweet water is easily
available to them.
Transportation cost is low.

3.Intangible factors:
Community attitude is positive towards Shamim &
Company.
Living conditions are quite good for employees i.e.
No harm is there for their health, safety &
psychology.

www.reportsmba.com

12

www.reportsmba.com

Capacity
Capacity is the maximum rate of output for a facility.
The facility can be a workstation or an entire organization.

How Shamim
capacity:

&

Company

plans

its

In Shamim & Company, capacity planning is based upon

demand analysis & demand forecasts.
Normally Sales department, analyses demand &
forecasts the demand. Then facts and figures about demand
are delivered to General Manager Technical, who plans
capacity.

Plants:

There are 4- manufacturing plants, which are imported

from Germany, and these plants are used according to
season.
So their usage very from 4- plants to 1-palnt.

Capacity Information:
Avg. output rate =15000, cases per day per plant.
Here 1- day =24 hours and 1-case = 24 bottles.
Maximum or peak capacity =20,000, cases per
day per plant.
Effective capacity = 15,000 cases per day per
plant.
Utilization
plant.

15,000
100 75% rate=
20,000

(peak) per

Utilization rate= 15,000 100 100% (effective)per

15,000
plant.
Capacity cushion =100% - 75% = 25% per plant.

www.reportsmba.com

13

www.reportsmba.com
Capacity cashion is large one, which costs money, but
Company is able to meet any future demand.

www.reportsmba.com

14

www.reportsmba.com

Expansion in Capacity:
In start, there was only 1manual plant having capacity of 2000-cases per day. But
now due to:
Increase in market size (population)
Increase in demand,
There are 4-plants in Shamim & Company in just 33-years.
These 4-plants are automatic with effective capacity of
15000-cases per plant per day.

Strategy:

Shamim & Company follows Expansionist

strategy as it uses frequent and large jumps in capacity.

Economies of large capacity:

Shamim & Company
with large capacity is enjoying following economies of scale:
Reduced costs of purchased material by having
discounts on heavy/large purchases.
When output rate increases utilization rate also
increase and per unit cost decreases in large
capacities because fixed costs are spread over
more units.
In large capacity, Company gets more
experienced workforce so productivity is
increased & so cost is reduced.

Diseconomies of large capacity:

Shamim & Company also faces following diseconomies

of scale (large capacity).
Its difficult to manage large capacity.
It requires more capital.
Forecast for demand is less accurate.

www.reportsmba.com

15

www.reportsmba.com

Simulation Analysis
In the process of Simulation, we use a model to
reproduce the behavior of system & to find solution of a
complex problem. This model consists of different variables
or alternatives.
Shamim & Company has a Research dept. which
works with Simulation Analysis. There are MIS-people to
handle simulation system.

Layouts
Layout is physical arrangement of economic activity
centers within a facility. An economic activity center can be
anything that consumes space.
In other words Layout is physical arrangement of
people, equipment or activities.

Application in Shamim & Company:

Shamim &
Company works with Product Layout type, as resources are
arranged around the products route. Computer application
is also there in making layouts.

Some Layouts, In Shamim & Company:

main layouts in Shamim & Company are following:
Layout of plants.
Layouts of Equipment.
Manufacturing layout.
Office layout.
Retail layout.
Distribution & warehouse layouts.

Forecasting
www.reportsmba.com

16

Some

www.reportsmba.com

Patterns of Demand:
Demand for products of
Shamim & Company follows Seasonal Pattern i.e.
repeatable pattern of increases or decreases in
demand, depending on the time of season.

Factors affecting demand:

1- External factors:

Now-a-days, the biggest facotr affecting demand of

products (of Shamim & Company) is the
Competitors actions & frankly speaking the
actions/policies of Coca Cola Company e.g. there
effective advertising compaigns etc.
Govt.s rule & regulations about taxes & prices also
influence the demand by affecting the price of
products.

1. Internal factors:
3-main

internal factors affecting demand are:

Price.
Advertisement.
Distribution.

Design of Forecasting System:

1. Deciding what to forecast:

Level of aggregation:
In Shamim & Company forecast is made about all four
products separately.
Unit of Measurement:
Forecasting is made in terms of Cases where 1 case = 24
bottles.

2-Type of Forecasting Technique:

In Shamim & Company forecasting is made for shortterm period i.e. for a quarter (3-monts).

www.reportsmba.com

17

www.reportsmba.com
In Shamim & Company, the base for forecasting is
previous data about sales, which is provided by sales
department. After analyzing the data, the forecast is made.
Executive Opinion is also used in forecasting i.e. Opinions,
experience & technical knowledge of related managers. So
forecasting in Shamim & Company is a blend of analysis of
data & executive opinion.

Supply Chain Management

Supply-chain management aims at synchronization of a
firms activities/ functions and those of its suppliers to match
the flow of materials, service and information with customer
demand.

Application on Shamim & Company:

Structure:
The structure of Shamim & Company is more inclined
towards segmented structure as most of the decisions are
made independently by Consumers
all the departments & only in case of
targeting (demand etc.) there are joint decisions.

Supply Chain:

Retailers
Distributors
Shamim & Company

Sugar

Gases

Concentrate + flavor

www.reportsmba.com

18

Detergents & Washing Powders

www.reportsmba.com

(Supplies of raw material)

Shamim & Company has independent supply-Chain
entities i.e.
All depts. normally make independent decisions.
Customers & suppliers are not involved in decisionmaking.

Mode of placing Order:

Telephone is used about in all
cases, to place order for acquisition of raw material.

Supplier Selection:
The first priority is given to Quality
while selecting suppliers, by Shamim & Company. Price is
considered after quality & delivery time at last. Selection is
on the basis of samples sent by the suppliers to production
managers.

Supplier relations:
Shamim & Company and its suppliers have
cooperative orientation b/w them. Its main reason may be
that Shamim & Company does not focus on price mainly but
quality & Shamim & Company in one of the biggest
customers of its suppliers, normally.

www.reportsmba.com

19

www.reportsmba.com
Sole Sourcing:
Sole sourcing is not there in Shamim & Company, as
Company does not place orders to only one supplier for a
particular item.

Raw Material & suppliers

Raw Material:
Water, sugar, CO2, Ammonia, Concentrate, Caustic
Soda, Empty Bottles, Flavor,etc.
Acquisition of Raw Material:
Water:
Water is obtained from local resources. As co. has
its own plant of water acquisition & treatment.
Sugar:
A Grade sugar is bought from Ittefaq Sugar
Mills, Layyah Sugar Mills and also imported from
Dubai.
Concentrate and flavor:
Concentrate and flavor come from Pepsi Co.
from U.S.A.

www.reportsmba.com

20

www.reportsmba.com
CO2 :
Company has its local plant for CO2, which does
not fulfill requirement of company. So it is bought
from other gas companies like Pak Gases, and
Multan Gases.
Caustic Soda:
Caustic soda for washing empty bottles is bought
from Sitara Chemicals, etc.
Empty bottles :
Empty bottles are returned by the people.
New bottles:
New bottles are acquired from glass factories like
Toyo Nasic, DGL (Balochistan).

Distribution:
1.Placement of finishing goods inventory:
Shamim & Company is involved in forward placement
of finished goods inventory, i.e. its locates the stocks closer
to customers.
Advantages from forward placement are following:
Reduction in transportation cost
Fast delivery times

2.Transportation mode :
Roads are the biggest/ main transportation mode in
distribution of shamim & co.
Trucks are normally used for distribution. So distribution
is very flexible due to use of high way-transportation.

3.Scheduling, routing & carrier- selection.

The area / territory of Shamim & co is divided into many
sectors/regions. For every region, there is RSM i.e. regional
sale manager, who is involved in scheduling/ routing &
carrier selection decision making by survey of outlets.

www.reportsmba.com

21

www.reportsmba.com

Inventory measures:
Shamim & co normally measures inventory in terms of
weeks of supply.
Where,
AverageAggregateInventory
weeks of supply
=

WeeklySales(atCost )

Inventory Management in Shamim & Company:

Shamim & Company has pressures for low-inventory
because:
Shamim & Company wants to provide fresh products
to its customers.
Holding cost of inventory is high.
High inventory causes high tax also.

Types of
Company:

inventories

in

Shamim

&

1. Cycle- inventory.
2. Anticipation inventory but at very minimal level as
products are not stored for a long-time period.
3. Safety stock at minimal level.
4. Pipe-line inventory is also there which is dependant upon
suppliers reliability & lead-time
Pipe line inventory/Buffer Stock = dL
Where
d = demand during unit of lead-time.
L = length of lead-time.
Supplies are distant normally, so Company has to
maintain a considerable amount of Buffer-Stock.

Inventory reduction tactics:

Cycle inventory is going to be reduced by increasing

repeatability.
Shamim & Company always tries to make good forecasts
about demand & suppliers-delays to reduce safety stock.

www.reportsmba.com

22

www.reportsmba.com
Suppliers of Shamim & Company are not habitual of
delaying in case of Shamim & Company, as Company cant
afford any delay.

Inventory control system:

Shamim & Company uses Periodic Inventory System

i.e. P-system for inventory management. So inventory is
reviewed normally on weekly basis. Some times daily
reviews are also made. Each month the store prepares
Monthly consumption reports.

Reorder point:
For two main items reorder pts., are as following:
Sugar is reordered when it is left for only 100batches.
Concentrate is ordered for 2 a 3 times a
year.

Inventory Record Accuracy:

Store manager is responsible for inventory record

accuracy. He personally reviews inventory on daily basis &
some times, production manager also reviews inventory
even on daily basis.

Replenishment:
For some items e.g. concentrate, flavor etc., Shamim &
Company experiences instantaneous replenishment & for
some items, e.g. sugar etc., co. experiences noninstantaneous replenishment i.e. Company receives orders in
installments.

Quantity discounts:

Company buys bulk-quantities, so it enjoys quantity

discounts also, by which cost is reduced, profit margin
increased and price becomes creative.

www.reportsmba.com

23

www.reportsmba.com

Aggregate Planning
Aggregate plan is a statement of production rates,
work-force levels and inventory holdings based on estimates
of customer requirements & capacity limitations.
Since Shamim & Company is a manufacturing co., so
its aggregate plan is also called production plan.

Unit of plan:

Aggregate plan is expressed in terms of no. of cases.

Which are also called SKU (stock keeping units). 1 case = 24
bottles.

Planning horizon:
Aggregate plan is mostly prepared for a period of one
year, but sometimes, it is also prepared for 3-4 years.

Strategy for aggregate planning:

Shamim & co. follows chase-strategy as it follows

demand-pattern-Demand for Shamim & co.s products is
seasonal.
So due to seasonality of demand & chasing of demand,
the co; adopts following alternatives:

Reactive Alternatives:
The reactive alternatives are the actions that are taken
to cope with demand requirement.

1.Work force adjustment:

Company has 2-types of employees:

Employees at permanent basis.
Employees at contract basis
The employees at contract basis are hired & fired in
peak & slack seasons respectively.

2. Work-force utilization:
(i). Overtime:
Normally there is not the tendency of over-time in
Shamim & Co. as management thinks that productivity
of workers is reduced during over-time.

www.reportsmba.com

24

www.reportsmba.com
(ii) Under Time:
The permanent workers are also paid; the under
time, but the workers on contract-basis are paid on the
basis of working hours so under time is not paid to
them.

3. Vacation schedule:
Shamim & Company gives incentives for vacations in
slack-season. Vacations are given on the basis of labor-laws
in Pakistan.
Company does not adopt aggressive alternatives, as co. has
not complementary products & creative pricing.

www.reportsmba.com

25

www.reportsmba.com

Linear Programming
Linear programming is not normally applied in Shamim
& co. or if it is applied, then at a very minimal level.

Objective Function:
Maximize

Z pixi
i 1

pi = price per case

xi = No. of cases

i = 4-products; Pepsi, Mirinda, 7-up, Team

Constraints are in terms of budgeted resources &
capacities.

www.reportsmba.com

26

www.reportsmba.com

Material Requirement Planning (MRP)

Material
requirement
planning
system
enables
businesses to reduce inventory levels, to utilize labour and
facilities in a batter way and improved customer-service.

Inputs to MRP:

1. Bill of material (BOM):

BOM is a record of all the components of an item, the
parent component relationship and usage quantities derived
from engineering & process designs.
The simple BOM for Shamim & Companys product is as
following.

1- Case of bottles

Case (1)

Crowns (24)

Bottles (24)

Print

Empty Bottles(24)

Returned
Sugar

Purchased
Water

Concentrate

End item
= 1-case of bottle
Purchased items
= raw material & cases
Intermediate items = Bottles, Syrup
Sub-assemblies
= Bottles, Syrup

www.reportsmba.com

Syrup

27

Others

www.reportsmba.com

2.Inventory Records:
In inventory records, Shamim & Company uses to order
after variable periods of time and of variable quantities,
depending upon season.
Item with highs lead time is Sugar
Item with lowest lead time is Co2

3.Master product Schedule (MPS):

MPS gives details about production of end items within
specified periods of time.
In Shamim & Company, MPSs are prepared normally on
weekly basis.

www.reportsmba.com

28

www.reportsmba.com

Total Quality Management (TQM)

There are basically three principles of TQM:
Customer satisfaction
Employee involvement
Continuous improvement
TQM in Shamim & Co., is also concerned with above
three basic principles.

Customer Satisfaction:
The management of Shamim & co., evaluates its
customers satisfaction in following terms:
Whether products meet customers needs.
How much utility they get out of these products.
How effective advertisement is?
The degree to which products can express lifestyle of
customers.

Employee Involvement:
Training:
There are no specific training centers/ programs for
employees. Employees are usually trained by:
Seniors
Seminars

Incentives:

Special allowances are given at Eid & Festivals.

Incentives are also given for regular work during
peak season.
Promotions are also given to employees on the basis
of their performance.

www.reportsmba.com

29

www.reportsmba.com

Continuous Improvement:
Continuous improvement is in
terms of continuous modification in quality. For such
modification the co., uses statistical process control , training
of employees and different problem-solving tools.

Other considerations:
Problem Solving tools:

In order to monitor the quality system, the

management & responsible personnel use checklists, graphs
and some other control charts.

Quality-Tests for raw material:

Sugar quality test is called Brix.

Concentrate test.
Water treatment tests.
Upper tap test.
San filter and carbon purifier test.
Water softness test.
Finished bottle test i.e. light test.
Microbiological test by chemist after a week

Quality Awards:

Shamim & co., has won valuable quality awards. Some

of them are:
1st prize for quality in 1994 at international level by
Pepsi International company.
Asian Champion in 1999.

Statistical Process Control:

Co. uses different control charts to match the output of

process with product design. Most of the charts/tests are
applied at work-in-process. These charts include Mean-chart,
Range-chart & c-chart (to check # of defects per unit.)

www.reportsmba.com

30

www.reportsmba.com
Sampling Plan:
Co., uses single-sampling plan to accept or reject the
lot. Normally sample size is very small as co., is confident
upon its suppliers.

www.reportsmba.com

31

www.reportsmba.com

Work Design And Measurement

Work must be done in selective, repetitive, reasonably
uniform manner (division of labor & specialists).
Work must be homogeneous.
There must be sufficient volume of work.
Production manager checks the productivity of
employees and machines.

Future Plans
Co., has two significant future plans:
Shift of facility/plant to out-side area of Multan City. The
reason is the restrictions imposed by Govt., on trucks &
other heavy transport vehicles, to enter into the city
boundaries in day time. So it becomes hurdle in the
way of distribution.
Shamim & Co., is trying to get ISO-9000 Quality
standards. ISO-9002 is their target standard as co. is
mainly involved in production & distribution.

www.reportsmba.com

32

www.reportsmba.com

Current Affairs
Now a day, the co. is facing two main issues:

Increased Competition:
Co. is facing very tough competition with its traditional
competitor i.e. Coca-Cola, people because of their effective
advertisement & modified strategies. So advertisement cost
at local level has been increased.

Sugar Prices:
Sugar is one of the major raw materials of
Shamim & co. Continuous increase in sugar prices is
enforcing the company to increase the price but it is very
difficult to do it due to increased competition.
So reduction in cost of operations along
with quality improvement is really a big challenge for
management of Shamim & co., particularly in recent
days.

www.reportsmba.com

33