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.

1
 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.

2
 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.

3
In the third Chapter I mentioned all that company’s 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 some

shortcomings 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.

4
TABLE OF CONTENTS
Descriptions Page No
1. Acknowledgement i
2. Dedication ii
3. Executive Summary iii-iv
4. Table of contents v-vii

CHAPTER NO 1

1.0 Introduction & Background 1-3

1.1 Mission Statement 3
1.2 Vision Statement 4
1.3 Product Range 4-12
1.3.1 Mechanical Components 4
1.3.2 Sensors, Transducers and Detectors 4
1.3.3 Data Acquisition and Signal Conditioning 5
1.3.4 Test and Measurement Equipment 5
1.3.5 Laboratory Equipment and Scientific Instruments 5
1.3.6 Materials, Chemicals and Adhesives 6
1.3.7 Heating Solutions 6
1.3.8 Medical/Industrial/Educational Equipments 7
1.3.9 Gas Containers/Cylinders/Valves 7
1.3.10 Soft wares 8
1.3.11 Electrical and Electronic Components 8
1.3.12 Industrial Computers and Embedded Computer Components 8
1.3.13 Optical Components and Optics 9
1.3.14 Imaging and Video Equipment 9
1.3.15 Laboratory Equipment and Scientific Instruments 10
1.3.16 Semiconductors 10
1.3.17 Networking and Communication Equipment 10
1.3.18 Cables & Connectors 11
1.3.19 Motion and Controls 11
1.3.20 Flow Control and Flow Transfer 12
1.3.21 Fluid Power Components 12

CHAPTER NO 2 13

2.1 Objective of the Study 14

2.2 Significance of The Study 14
2.2.1 Exposure 14
2.2.2 Better Understanding of the Concepts 14
2.2.3 Understanding of Business 14
2.2.4 Working in Team 15
2.2.5 Integrated Role of Departments 15

5
2.2.6 Impact of Technology 15
2.3 Definition of Terms 15-16
2.3.1 Procurement 15
2.3.2 Supplier 15
2.3.3 Buyer 15
2.3.4 Purchase Enquiry 16
2.3.5 Letter of Credit 16
2.3.6 FOB 16
2.3.7 CFR 16
2.3.8 Ex-Works 16
2.3.9 Lead Time 16
2.3.10 GBC 16

CHAPTER NO 3 17

3.0 Work Experience 18

3.1 Procurement 18-23
3.1.1 Defining the Specification 18
3.1.2 Defining the contractual Terms 19
3.1.3 Sourcing 19
3.1.3.1 Competitive Tendering 19
3.1.3.2 Open Tendering 19
3.1.3.3 Selective Tendering 20
3.1.4 Sources of Information 20
3.1.5 Supplier Appraisal 20
3.1.5.1 Technical/Production Capabilities 20
3.1.5.2 Financial Capabilities 21
3.1.5.3 Commercial Capabilities 21
3.1.6 Inviting Quotations 21
3.1.7 Analyzing the Quotations 22
3.1.8 Price Negotiation 22
3.1.9 Contract Award 22
3.1.10 Follow Up 22
3.1.11 Payment 22
3.1.12 Evaluation 23
3.2 Finance Department 23-24
3.3 Sales Department 25
3.4 Administration Department 25

CHAPTER NO 4 26

4.0 Analysis 27-29

4.1 PEST Analysis 27
4.1.1 Political 27
4.1.2 Economical 27
4.1.3 Socio-culture

6
4.1.4 Technological 27
4.2 SWOT Analysis 28
4.2.1 Strengths 28
4.2.2 Weaknesses 28
4.2.3 Opportunities 29
4.2.4 Threats
29

CHAPTER NO 5 30

5.1 Conclusion and Recommendations 31-33

5.1.1 Market Focus 31
5.1.2 Supplier Selection Criteria 31
5.1.3 Bidding 32
5.1.4 Communication Gap 32
5.1.5 Compensation Plan 32
5.1.6 Training 33
5.1.7 Reward System 33
5.1.8 Employee Turn Over 33
5.2 References 34

7
 Chapter No.1

Introduction & Background

1.0 Introduction & Background

Today’s 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 Concerns

to 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

8
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:

9
To be renowned as a leader and a brand synonymous with trust, standards of service

quality, international best practices and social responsibility.

1.2 Vision statement:

GBC management ideals are based on honesty, efficiency, constant improvement and

market development. On this basis we are striving to maintain our relationships with our

current customers, meanwhile making new business contacts with clients/principals

worldwide.

1.3 Product Range

1.3.1 Mechanical Components:

GBC has always been in the forefront in providing mechanical components to different

industries/Clients including automobile, electro-mechanical and Oil & Gas sectors.

1.3.2 Sensors, Transducers and Detectors:

GBC deals in vast range of sensors and detectors including Heat, Tilt, Motion, pressure,

displacement, miniature and health monitoring sensors etc and can provide customized

sensors according to the specific requirement of clients.

10
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.

11
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 world’s 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.

12
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 sector’s requirements. For

labs high quality gas containers are available for the safe transportation of different types

of gases and liquid gases.

13
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.

14
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 principal’s 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.

15
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:

16
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,

17
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.

18
 CHAPTER # 2

OBJECTIVES AND SIGNIFICANCE OF THE STUDY

19
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:

20
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.”

21
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 shipper’s 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/seller’s factory or
warehouse.

2.3.9 Lead Time:

“Time from order placement to delivery of goods”

2.3.10 GBC:

“Global Business Concerns”

22
 Chapter No. 3

The Company Departments and Work Experience

23
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:

24
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 Supplier’s 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, that’s 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:

25
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.

26
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

• Supplier’s 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 supplier’s bank/financial statements,

credit rating, bank guarantee etc. at this stage.

3.1.5.3 Commercial Capabilities:

It includes the supplier company’s history, its structure etc. It is always very important to

get the information about

• how long the company is in the business,

• it’s product range

• location

• Distribution Channel

• Lead Time for required item

• Customer list etc.

27
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

purchaser’s 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:

28
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 day’s

employee had worked against the number of days in a month.

29
• 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

employee’s 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.

30
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 don’t want me

to know the profit percentage.

3.2.3 Administration Department:

31
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 employee’s personal records,

their appraisal forms, etc.

Chapter No.4

ANALYSIS

32
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. That’s

why I select PEST method to analysis of organization.

4.1.1 Political Factors:

Pakistan is not stable with its political trends. It’s 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 don’t 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. (9th ed.) Principals of Marketing. New York: McGraw-Hill.

• Sekeren, U. (7th ed.) Business Research Methods.

• Keller, L.K. (2nd 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,

from http://www.apafromthenest.com/.../formatting-success/

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