Shoaib Metro Engineering Private Limited` Internship Report Submitted by Daniyal Ahmad L1S20BBAM0176 Session 2020 - 2024 Supervised by Prof. Uzma Tahira A report submitted in partial fulfillment of the requirements for the degree of Bachelors of Business Administration Faculty of Management Sciences University of Central Punjab University Of Central Punjab Shoaib Metro Engineering Private Limited` Table of Contents Chapter 1 ....................................................................................................................................................... 3 Introduction of the Company ........................................................................................................................ 3 Company name: ........................................................................................................................................ 3 History of the Firm: .................................................................................................................................. 3 Type of industry: ....................................................................................................................................... 3 Company’s Hierarchy: .............................................................................................................................. 3 Product line: .............................................................................................................................................. 4 Facility Layout: ......................................................................................................................................... 5 Vision and Mission: .................................................................................................................................. 6 Chapter 2 ....................................................................................................................................................... 7 Organizational Analysis ................................................................................................................................ 7 Departments/Functions of the company: ................................................................................................ 7 Human Resource Policies of the Company: .............................................................................................. 7 Marketing Strategies:................................................................................................................................ 7 Shoaib Metro Engineering - SWOT Analysis: ............................................................................................ 8 Financial Analysis of the Company: ....................................................................................................... 16 EFE Matrix: ........................................................................................................................................ 16 IFE Matrix........................................................................................................................................... 17 Space Matrix: ...................................................................................................................................... 18 Competitive Profile Matrix (CPM) : ................................................................................................ 18 Chapter 3 ..................................................................................................................................................... 20 Conclusion & Recommendations................................................................................................................ 20 Conclusion: ............................................................................................................................................. 20 Recommendations: .................................................................................................................................. 20 Activities Report: .................................................................................................................................... 21 i) Assigned Job ............................................................................................................................... 21 ii) Tasks achievable.......................................................................................................................... 21 University Of Central Punjab Shoaib Metro Engineering Private Limited` Chapter 1 Introduction of the Company Company name: Shoaib Metro Engineering Private Limited History of the Firm: Started in 1982 with two brothers. First worked on soap dish. After that they worked on toilet Lid. After some time, the two partners ended their partnership. He started with one machine and made hangers for 8 years. Now they are working on multiple items like feeder, hangers, plastic bottles, led lights, bike lights, muhafiz switch and Ac Breaker etc. Type of industry: They are specialized in manufacturing all plastic related products. Company’s Hierarchy: The company is owned by Shoaib Ahmad. He has been in the manufacturing business for over a decade. At first they started with one machine at the ground floor of their home. He made his name slowly and after a decade they own a factory with lots of machines capable of manufacturing almost every kind of product. During this time he kept teaching their boys about his business and how the machines work. Now the factory is handled by two of his heirs Shahryar Shoaib and Danish Shoaib. They are best in their work and bring new customers and work on new products. Factory is depended mainly on Shehryar Shoaib because after the father he is the most competent person and head of all the operations. University Of Central Punjab Shoaib Metro Engineering Private Limited` Shoaib Ahmad (CEO) Shehryar Shoaib (Director) 4 employees under Danish Shoaib (Director) 3 employees under Product line: They are specialized in plastic injection molding machines and multiple blow molding machines. Following products are made through these machines only. Feeder bottles and all related accessories Hangers Water bottles of all sizes PVC rings/ rubber bands LED lights Muhafiz Switches A.C. breaker case Furnace USB Cables And all other plastic related products University Of Central Punjab Shoaib Metro Engineering Private Limited` Facility Layout: They layout of the facility is in such a way that the as soon as raw material is turned into preform, it is then moves to the next machine where preform is further converted into finished product. Above is the machine where in the chimney raw material (resin) is inserted and it converts the resin into preform. This is the machine which converts preform into the finished desired product. This machine is called blow molding machine. It can process thousands of products in one day. University Of Central Punjab Shoaib Metro Engineering Private Limited` We can make variety of products through these machines by just changing the molds in those. There are molds of hundreds of products in their warhorse and they can change those anytime when order comes. These molds are can be replaced by a manual crane designed by Mr. Shahriyar himself. Following is the machine called injection molding machine that converts resin into any kind of product that include led lights, hangers, caps of bottles etc. Vision and Mission: Mission and vision of the company is providing the best products to the clients through there years of experience in their respected field i.e. manufacturing, and increase their portfolio and knowledge and bring creativity to their work. University Of Central Punjab Shoaib Metro Engineering Private Limited` Chapter 2 Organizational Analysis Departments/Functions of the company: There are mainly three departments in the company that are followed: 1) Sales And Marketing 2) Supply Chain and Operations Since it is a small manufacturing company so most of the business functions are handled by the owners itself. Shahriyaar Shoaib usually deals with the operations and manufacturing side and Danish shoaib (younger brother) brings the clients and deals with distribution and sales. While Shoaib Gulzar ( Owner) do the dealings with clients and signs the contracts. Human Resource Policies of the Company: The workers there are provided with fix salaries and a tour to the northern side once a year. Also they take care of their families as well in case of any unfortunate events or even if there are events of happiness they participate to the fullest in both monetary and moral terms. Marketing Strategies: The only marketing they have is through the words of mouth. They have been in this field for a long time and everyone in the market knows them and admires their work. That is why there is never any off season in their business. Their contracts are usually long term and barely get any time to do their marketing for more clients. University Of Central Punjab Shoaib Metro Engineering Private Limited` Shoaib Metro Engineering - SWOT Analysis: Strengths: 1. Expertise and Experience: Shoaib Metro Engineering has been in the business of manufacturing for over a decade. Their team has the proper expertise and experience that must be needed to deal with complexities that occur in manufacturing and also they are expert in maintain and upgrading the machines themselves rather than depending on engineers. This gives them edge and saves a lot of their costs and headaches. 2. Diverse range of machinery: They company has diverse range of machinery from plastic molding to blow molding and also the machines that convert polyethylene resin into pet preforms. Resin is converted into preform and those preforms are used in machinery to convert in any desired shapes and products. They save lot of money through this as well. 3. Reputation and Relationships: The manufacturing companies barely do their marketing. The costumers mostly come on the basis of relations and reputation in the market. Shoaib metro engineering has attained a well reputation and has been maintaining that reputation for a long time. This lead them to have long terms contracts with their clients and their work never stops means no off season. Through word of mouth they keep getting calls for more orders from different wholesalers on daily basis. 4. Strong Product Portfolio: As mentioned in chapter 1, they have expertise in manufacturing more than dozens of products. This makes their portfolio really impressive and shows their professionalism in their work. Their best selling product is feeders. In feeders they are the masters in their work and no other company competes them. Their University Of Central Punjab Shoaib Metro Engineering Private Limited` latest product is a baby training cup. Its manufacturing cost was around Rs.300 and it selling for around Rs.1000 in the market. 5. Efficient Supply Chain Management: In order to avoid the hassle of buying raw material every time the order comes, they stock the raw material for the coming few months. This way their production is consistent and work does not stop unless the electricity does not get off. Because the online time their machines stop is when the electricity goes and it always remains unpredictable. They mainly have two sources from where they source the raw materials and if they face some shortage they give them a call and they deliver it to their factory at fair prices. 6. Skilled Workforce: The turnover rate is almost zero there. There are around 10 persons of labor working and they have been with them for a quite long time and they have the expertise to run the machines if the owner are not around to operate. They are very professional in their work and they have been trained for that. 7. Research and Development (R&D) Capabilities: Shahryar Shoaib is a genius person. He likes to work on projects which others hesitate to put their hands on. That is why he invests a lot on research before doing any project. His recent projects are an automatic bryani machine and a self made furnace that do coating of glass on a cattle. 8. Quality Assurance and Standards Compliance: Being recognized in the market is not an overnight success. It requires years and years of dedication and customer satisfaction. Today they are the most trustworthy manufactures in the market just because they deliver what is promised. Their foremost priority is maintaining the quality. In plastic field, colors matter the most and they provide the product with best finishing and best colors. University Of Central Punjab Shoaib Metro Engineering Private Limited` Shahryar shoaib takes all the responsibility of the quality assurance and meet the british standards because some of their products export too. 9. Strong Supplier Relationships: As mentioned earlier, their supply chain is efficient and to keep the supply chain efficient they have developed strong relations with their suppliers. They resin and preforms used are sourced from few suppliers that import these from UK mostly. 10. Capacity for Scale and Volume: Usually they work under limits but some times when customer demands more so they have the capacity to increase their production and volume produced by around half. As of my knowledge, recently they were producing 1 thousand feeders per day but when the demand increased that increased that production to 1500 units per day. So, there is always room for scaling up the production. Weaknesses: 1. Online Presence: The company has no online presence i.e. no website, no facebook group etc. In this era of social media, it is very necessary to market the company through social media. This limit their reach to new potential customers. Contrary their rivials like Sweet Baby and Kitko Feeders has pages and online selling platforms. 2. Outdated machines: All their machines are old machines. They keep updating them with newer efficient parts but their competitors have latest automatic machines. Their machines are manual ones and always require a labor along with the machine. This decreases their production and increases the costs. To cover this gap they usually work 18 hours a day making their work double to meet the standards. 3. No ERP software: They still write all their sales, inventory, orders etc. on registers rather than maintaining all the data on excel sheets or any ERP systems like SAP, University Of Central Punjab Shoaib Metro Engineering Private Limited` Dynamics 365. This is a major drawback that I feel they should work on. When we have all the stats arranged in well manner it gets easy to manage. 4. High Operating Costs: The operating costs are really high. The operating costs include the raw material, the electricity being used for the machines, machines maintaining for efficient working, labor etc. 5. Work on credit: Mostly their work is on credit. Due to recent economic crises, their payments get delayed most of the times. The reason he gave was distributors or wholesalers payback when they get sales. High production costs due to increase in electricity bills, petrol prices and increased dollar rates the retailers are forced to sell at more rates as well due to inflation. 6. Limited Product Differentiation: As every item requires a special mold and once the mold is made no such alteration in the design is possible other than coloring scheme. To bring changes new molds are to be made and that is an expensive process. 7. Lack of Sustainability Initiatives: No such measures are taken towards sustainability. 8. Limited Access to Capital: They do not work on new projects on their own due to limited access to capital. Mostly they are dependent on the projects given by interested parties. 9. Overdependence on Key Customers: The contracts are usually long term with the parties. So, they are dependent on their key customers. 10. Difficulty in Adapting to Market Trends: As said earlier, the switching costs are a lot and inflation has risen it is hard to keep up with trends. University Of Central Punjab Shoaib Metro Engineering Private Limited` Opportunities: 1. Infrastructure Development: By developing a bigger infrastructure for their factory to add more machinery and stock capacity could lead substantial growth opportunities. They want to expand their factory too. 2. Technological Advancements: They can integrate new technologies and software in their machines like AI, to enhance their productivity and efficiency. 3. Collaborations and Partnerships: The demand in the market is huge. Few factories cannot meet the demand. Best way is not to compete with each other but rather work with each other. In plastic field, a single product requires lot of molds. So, partnering with other firms to distribute the work load will benefit all and production will increase. 4. Diversification in Services: They are expert not only in manufacturing plastic products but also assembling and running the new machines that are imported from japan and china mostly. They can assemble and sale those machinery as well and can install new factories too. There are lot of opportunities for them here. 5. International Market: Their products are British standards and also exported by wholesalers and retailers. They can develop their relations with foreign customers directly and can directly export their products to them or can vertical integrate their company and sell their products in international markets. 6. Steps toward green and sustainability: There is not such trends to move towards sustainability in Pakistan. The company I am working in is already facing lot of financial challenges due to current country situation. But if they focus on sustainability and green solutions then they can motivate other manufactures too towards it and play their part in society and also their goodwill definitely will increase. University Of Central Punjab Shoaib Metro Engineering Private Limited` 7. Public - Private Partnership: Shoaib metro engineering can collab with public sector too and there are I believe would be lot of opportunities for them. 8. Automation: As their machines are run by labor and with labor comes lot of responsibilities and cost. A step towards automation can bring revolution in their factory. As they are already very professional in their work with automatic machines they can work on better and more other things. 9. Supply chain localization: They have always preferred to source raw material from other countries like Iran and UK. They can source it from local vendors as well if they are providing good quality. Threats: 1. Economic Instability: The biggest threat not just my company but all other manufacturing companies are facing is the economic instability. For the past two years it has become really difficult to even meet the standards. Everyday increase in patrol and electricity unit prices and the increase in taxes has impacted a lot on these firms. Shaoib Metro Engineering has been successfully fulfilling their contracts with costumer satisfaction. But their payments mostly are due because with increase in taxes, and other prices led to increase in the price of products and the market is cold. Wholesalers get the products on credit and products take time to sell and they return the money when they make the money. Also, the huge increase in electricity bills has reduced their profit margins. To meet the expected revenues they have to work a lot and sometimes run the factory 24 hours a day. 2. Political Instability: Due to political instability Shaoib Metro Engineering is facing difficulties in getting new orders. Customers are hesitating to invest due to regular University Of Central Punjab Shoaib Metro Engineering Private Limited` changes government policies. Also the prices of raw materials are depended on the dollar price and due to current political situation the dollar only seems to go up. 3. New Entrants: There is threat of new entrant with better machinery and lower prices as well. 4. Technological Obsolescence: Rapid advancement in technology can make existing solutions out dated. Continuous investment is needed to stay up to date all the time. Other threats that are as follows: 5. Competition and price wars: There are not many competitors in the manufacturing field but there is still tough competition among existing firms. The top selling product of Shaoib Engineering is Feeders. Their competitors in this field are KitKo Feeders, Sweet Baby and Mother's Happy kid. In order to compete with them in pricing they have reduce their price per product by few rupees. Since the quantity of order is huge so even marginal reduction of prices has an huge impact on overall cost. 6. Rapid change in trends: Shaoib Engineering also has the insights of the market that which product is trending and which is flop. Mostly the payback on their orders depends on the sales of their clients as most of the work is on credit. They do not want to work on the project that is not trending and ultimately in delayed payments. 7. Skilled labor shortage: Most of the labor they have is with them for a long time. They have trained them how to run machines, when to dispatch, quality control etc. But when there is need of more labor it is hard to find trained and skilled labor or if they find one the wages demanding are high. 8. Market Saturation: Market is saturated by not just Pakistani manufacturers but also chinese. That has created lot of competition and saturation. University Of Central Punjab Shoaib Metro Engineering Private Limited` 9. Quality control and products recall: Shehriyar Shoaib is responsible for the quality check. But sometimes machines do malfunction that results in loss of a lot raw material and finished products. It is very rare the products get recalled. It usually happens because of lack of finishing or coloring patterns. So, they have to bear all the costs of transportation and refurbishing. Strategies: 1. Mass Production: The minimum order they take is around 20 thousand per product. To achieve this level of production and meet the break even they have to manufacture around 1 thousand production per day. They have to achieve this level of production unless how many hours the machines work in a day. Due to shortage of electricity their machines work around 12 hours a day usually. 2. Competitive Prices: When producing mass quantity, just drop of 2 to 5 rupees has a huge impact on over all cost for the customer. They know what price their competitors are quoting so to compete the give the best possible prices for the interest of both parties. Recently one of their competing parties Mother’s Happy Kid offered their customers a bike who ever will order certain quantity. And they did deliver 3 to 4 bikes. This was a unique marketing tactic they used but to tackle this Shaoaib Metro Engineering dropped a massive Rs.10 on every unit produced of feeder. This way their customers remained loyal to them. 3. Contracts being negotiable: There is always a room for negotiation if the intentions are to contract in long terms. University Of Central Punjab Shoaib Metro Engineering Private Limited` 4. Stock of rat material: Instead of buying raw material when order comes, they stock the material (resin, preform, machine accessories) before hand in large quantity. So, this way fluctuation in demands or prices does not affect their profit margins. Financial Analysis of the Company: EFE Matrix: External Factor Evaluation Matrix (EFE) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Opportunities Infrastructure Development Technological Advancement Collaboration and Partnership Diversification in service Targeting International market Steps toward green and sustainability Public - Private Partnership Automation Supply chain localization Innovative Product Design Weight 0.10 0.05 0.01 0.08 0.02 0.05 0.05 0.01 0.10 0.04 Rating 3 1 1 4 2 3 1 1 4 4 Threats Economic Instability Political Instability New Entrants Technological obsolescence Supply chain disruptions Competition and price wars Rapid change in trends Skilled labor shortage Market Saturation Quality control and products recall TOTALS Weight 0.10 0.05 0.01 0.03 0.05 0.05 0.03 0.09 0.05 0.03 1.00 Rating 4 2 1 3 2 4 2 2 3 2 Weighted Score 0.30 0.05 0.01 0.32 0.04 0.15 0.05 0.01 0.40 0.16 Weighted Score 0.40 0.10 0.01 0.09 0.10 0.20 0.06 0.18 0.15 0.06 2.84 Interpretation: This weightage falls between the "moderate" (2) and "important" (3) ratings on the scale. Therefore, a weightage of 2.84 suggests that the factors are considered to be moderately important or possesses a moderate level of influence on the organization's overall performance in the EFE Matrix. It's positioned closer to being important (3) than being somewhat important (2), indicating a moderate level of significance. University Of Central Punjab Shoaib Metro Engineering Private Limited` IFE Matrix Internal Factor Evaluation Matrix (IFE) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Strengths Expertise and Experience Diverse range of machinery Reputation and Relationships Strong Product Portfolio Efficient Supply Chain Management Skilled Workforce Research and Development (R&D) Capabilities Quality Assurance and Standards Compliance Strong Supplier Relationships Capacity for Scale and Volume Weaknesses No Online Presence Outdated machines No ERP software High Operating Costs Work on credit Limited Product Differentiation Lack of Sustainability Initiatives Limited Access to Capital Overdependence on Key Customers Difficulty in Adapting to Market Trends TOTALS Weight 0.10 0.08 0.05 0.06 0.05 0.02 0.10 0.04 0.04 Rating 4 4 4 4 3 3 4 3 3 Weighted Score 0.40 0.32 0.20 0.24 0.15 0.06 0.40 0.12 0.12 0.03 3 0.09 Weight 0.04 0.05 0.05 0.04 0.06 0.03 0.01 0.06 0.05 0.04 1.00 Rating 1 1 1 2 2 2 1 1 2 2 Weighted Score 0.04 0.05 0.05 0.08 0.12 0.06 0.01 0.06 0.10 0.08 2.75 Interpretation: This weightage falls between "moderate" (2) and "important" (3) ratings on the scale. Therefore, a weightage of 2.75 suggests that the factors are considered to be moderately important or possesses a moderate level of influence on the organization's overall performance in the IFE Matrix. It's positioned closer to being important (3) than being somewhat important (2), indicating a moderate level of significance. Shoaib metro engineering needs to pay attention to these factors and consider appropriate strategies to leverage its potential or mitigate its negative impact. It’s important to monitor changes in this factor and adapt strategies accordingly. University Of Central Punjab Shoaib Metro Engineering Private Limited` Space Matrix: Interpretation: The "Aggressive" quadrant suggests that the company has a strong competitive position (X-axis: Competitive Advantage) and is in a strong financial position (Y-axis: Financial Strength). The arrow is pointing towards a growth-oriented strategy, indicating that the company should pursue aggressive strategies to capitalize on its strengths and opportunities. The company should consider strategies such as market development, diversification, mergers and acquisitions, product innovation, aggressive marketing campaigns, strategic partnerships, and other growth-oriented initiatives. The goal is to leverage the company's competitive advantage and financial strength to expand its market share, enter new markets, or introduce new products/services. Competitive Profile Matrix (CPM) : Competitive Profile Matrix (CPM) University Of Central Punjab Shoaib Metro Engineering Private Limited` Your Company Critical Success Factors Weight Rating Score Advertising Market Penetration Customer Service Store Locations R&D Employee Dedication Financial Profit Customer Loyalty Market Share Product Quality Top Management Price Competitiveness 0.05 0.05 0.10 0.09 0.20 0.05 0.09 0.10 0.05 0.05 0.10 0.07 Totals 1.00 2 3 4 4 4 3 3 4 2 4 3 4 0.10 0.15 0.40 0.36 0.80 0.15 0.27 0.40 0.10 0.20 0.30 0.28 3.51 Competitor Mother's Happy Kid Rating Score 4 2 3 4 2 3 1 2 2 3 3 3 0.20 0.10 0.30 0.36 0.40 0.15 0.09 0.20 0.10 0.15 0.30 0.21 2.56 Competitor Kitko Feeders Rating Score 2 2 3 3 4 1 3 3 2 3 3 2 0.10 0.10 0.30 0.27 0.80 0.05 0.27 0.30 0.10 0.15 0.30 0.14 2.88 Interpretation: My Company has the highest score among other companies representing strong competitive position compared to its competitors. Despite having the highest score, it's important to continuously monitor and improve upon identified key success factors to maintain or further strengthen the competitive position. Regular assessment and refinement of strategies are crucial for sustained success. Also, my company should remain agile and responsive to market changes, customer needs, and emerging trends. Flexibility in adapting strategies and business models will help maintain the competitive advantage. Considering strong competitive position, strategic options such as aggressive market expansion, product diversification, strategic alliances, or technological advancements should be explored to further solidify and enhance your market leadership. It's essential to capitalize on these strengths, continually innovate, and adapt to changing market dynamics to maintain and strengthen the competitive edge. University Of Central Punjab Shoaib Metro Engineering Private Limited` Chapter 3 Conclusion & Recommendations Conclusion: The conclusion is based on my two and a half week work in Shoaib Metro Engineering. It is a small manufacturing company but the work load is a lot means there is need of expansion of the factory by acquiring bigger place and more machinery. The company is working great under the experienced lead of Mr. Shoaib Gulzar and Shahriyar Sohaib. Their first priority has always been the quality no matter the political or economic instability. Their supply chain is efficient. They stock the raw material for the production of next few months and this strategy has always been super effective for them. Being a small manufacturing industry they are competing the mid-level industries and that is a considerable achievement. Recommendations: Need of automatic machines to replace with labor Need of ERP system to better manage the data To make the supply chain efficient they need to acquire warehouse and vehicles for that Need to divide the factory in different sections and departments University Of Central Punjab Shoaib Metro Engineering Private Limited` Activities Report: i) Assigned Job: The job that I am assigned is to keep the customers updated and to manage the production in the factory. Shahriyar bhai is my super wiser and he keeps guiding me in everything. I am learning how the machines work, how much material is required for the production per day and learning about sourcing the raw materials at fair rates. ii) Tasks achievable: It is been two weeks working here. I have not achieved much yet. I am at the learning stage right now. They do not want me to do big tasks until they are satisfied I have learnt things. I am just trying to prove my worth now. University Of Central Punjab