Description
The report explains on internship report of DANDOT Cement company.
DANDOT CEMENT COMPANY LIMITED.
In The Name Of Allah, The Most Beneficent, The Most Merciful. Read: In the Name of Your Lord Who Created, Created Man from A Clot. Read: And your Lord is The Most Bounteous. Who Taught by the Pen. Taught Man that which He did not know. Al-Quran
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Table of Contents
DEDICATION ......................................................................................................................................................... 2 TABLE OF CONTENTS........................................................................................................................ ………….. 3 EXECUTIVE SUMMARY ............................................................................................................................. 6 INTRODUCTION ....................................................................................................................................... 7 MISSION .................................................................................................................................................. 7 VISION ........................................................................................................................................ 8 ISO CERTIFICATION ................................................................................................................................ 9 PROMISE ........................................................................................................................................ 10 CHAPTER – 1 HISTORY ................................................................................................................................ 12 1.1 OVER THE YEAR ................................................................................................................................... 13 1961 ............................................................................................................................................. 14 1963 ............................................................................................................................................. 14 1965 ............................................................................................................................................. 14 1966 ............................................................................................................................................. 14 1969 ............................................................................................................................................. 14 1970 ............................................................................................................................................. 14 1972 ............................................................................................................................................. 14 1975 ............................................................................................................................................. 15 1978 ............................................................................................................................................. 15 1981 ............................................................................................................................................. 15 1983 ............................................................................................................................................. 15 1985 ............................................................................................................................................. 15 1.2 COMPANY PROFILE .............................................................................................................................. 16 1.3 BOARD OF DIRECTOR .......................................................................................................................... 17 1.4 SWOT ANALYSIS .................................................................................................................................. 18 2 Comsats Institute Of Information Technology,Lahore
DANDOT CEMENT COMPANY LIMITED.
1.5.1 STRENGTHS.......................................................................................................................... 18 1.5.2 WEAKNESS ........................................................................................................................... 19 1.5.3 OPPPRTUNITY ....................................................................................................................... 20 1.5.4 THREATS ............................................................................................................................... 20 CHAPTER 2. ORIGINIZATIONAL STRUCTURE ......................................................................................... 21
CHAPTER 3. FUNCTIONAL DEPARTMENTS ………………………………………………………………………………………… 22 3.1 PRODUCTION DEPARTMETNS ............................................................................................... 22 3.1.1 3.1.2 3.2 3.2.1 Quarry Departments ...................................................................................................... 22 Qality Control Departments ........................................................................................... 23 NON PRODUCTION DEPARTMENTS ..................................................................................... 24
Chemical Departments .............................................................................................. 24 Mechanical Departments .......................................................................................... 25 Electrical Departments .............................................................................................. 25 Marketing Department .............................................................................................. 26
3.2.2 3.2.3 3.2.4
4.1 4.2 4.3 4.4 4.5
CHAPTER 4. MARKETING STRATEGIES ........................................................................................................ 27 Targer Market & Market Share ...................................................................................... 27 Major Compititiors ........................................................................................................ 28 Pricing Policy ................................................................................................................. 29 Branding Labling and Packiging ...................................................................................... 31 Image Building Factors .................................................................................................. 32 4.5.1 Brnad Name ..................................................................................................................... 32
4.5.2 Product Quality .................................................................................................................... 32 4.5.3 Product Servicing ........................................................................................................ 33 4.6 PDM.................................................................................................................................. 34
4.7 Advertising & Sales Promotion ........................................................................................... 35 4.8 Order Processing ................................................................................................................ 35 CHAPTER NO 5. FINANCE DEPARTMENT............................................................................................. 37 5.1 Payable Section ................................................................................................................... 38 5.2 Payback Section .................................................................................................................... 38 5.3 Book Keeping Section ........................................................................................................... 39 5.4 Sales Accounting Section ...................................................................................................... 39 3 Comsats Institute Of Information Technology,Lahore
DANDOT CEMENT COMPANY LIMITED.
5.5 Payment Section ................................................................................................................... 39 5.6 Audit Section .................................................................................................................................. 40 CHAPTER-6 BUSINESS ANALYSIS PROCESS ............................................................................................... 41 CHAPTER-7 WEEKLY REPORTS ..................................................................................................................... 43 7.1 7.2 7.3 7.4 7.5 7.6 Ist week Report ....................................................................................................................... 43 2nd Week Report...................................................................................................................... 43 3rd week Report ....................................................................................................................... 44 4th week Report ........................................................................................................................ 44 5th week Report ........................................................................................................................ 45 6th week Report ......................................................................................................................... 45
CHAPTER 8. INTERN SHIP DUTIES .................................................................................................... 46 8.1 8.2 8.3 8.4 Learning ................................................................................................................................. 46 Problems Encountered .......................................................................................................... 47 Suggestios & Recommendtiions ............................................................................................ 48 References ............................................................................................................................. 49
7.1 Learning ...................................................................................................................................................... 7.1 Learning ...................................................................................................................................................... 7.1 Learning ......................................................................................................................................................
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DANDOT CEMENT COMPANY LIMITED.
Executive Summary
Dandot has several competitive advantages. The cost of production is very low because the raw material used in the production process is available from a distance of 3km. The method of production adopted at DANDOT Is dry one. This method is very cost effective because of its lower cost of fuel consumption and it is very environment friendly. This lower cost of production enables the company to market its product in farther areas from its natural geographical market. in this way company is able to expand Its market. The natural geographical market of Dandot is comprised of D. G. Khan, Multan, Bahawalpur, Bahawalnagar, Rahimyar Khan and Muzaffargarh, Gujranwala, Gujrat & other cities of Southern & northern PUNJAB. Quality control of Dandot is very good. That is why company has been able to establish very strong brand loyalty. Overall In market, cement is in excess, but Dandot is not able to fulfill the orders. This shows that how much is the demand of Dandot and how strong is the brand loyalty that customer are not willing to Substitute Dandot with any other cement. That is why it is planned to increase the capacity of the plant by 3300 tones per day by the end of 2007.
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Mission Statement
DANDOT'S mission is to perform to the highest levels of professional excellence within the industry and the national economy, while catering to the needs of our ever dedicated workforce, ensuring reasonable return to the stakeholders while delivering our product to the end consumer at competitive prices to accelerate the sustained development of Pakistan.
…to constantly endeavor for excellence in all spheres of business activity, maintain its market position in key centers of Punjab and Azad Kashmir, promote mutually satisfactory relationship with our customers and other stakeholders by creating value additions, and construct a strong, durable and forward moving Pakistan.
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Vision Statement
DANDOT strives to continue its path of market growth, consolidation and improvement, spanning the areas of north and central Punjab and Azad Kashmir. Our vision is to establish a strong market presence, focused on customer brand loyalty and satisfaction, on long term basis. DANDOT envisions maintaining consistent quality, keeping abreast with technology as well as updating our dynamic managerial and human resource capabilities in a competitive business environment, and accomplishing further improvement in its market share in an aggressive growth scenario.
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I S O Certification
The GHARIBWAL Group (which’s been the parent company to Dandot cements) has gained the trust of “ISO” by fulfilling all its commandments; it’s been awarded ISO 9001:9002 Certification for its subsidiary operations at Dandot Cement Company. This was awarded in the month of May 2002. This was to ensure the vision of both “ISO” & Gharibwal Group to maintain the quality and to keep abreast with technology in a rapidly changing business world.
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Objectives
? ?
To get growth through professional management
To have a corporate culture based on decentralization, delegation of authority, encouraging the acceptance of responsibility and
inculcating the quality consciousness. ?
To strive to be a better group than what we were yesterday. For our customers, for our shareholders, for our investors, for our employees and for the environment.
?
To continue to surpass our past achievements
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Promise
We constantly seek to strengthen our position as the construction industry's preferred provider and partner. So, in addition to our quality cement, we offer an array of complementary building materials and services across our industry's value chain from aggregates and paving stones to concrete and multi-products. Essential ingredients and... We are one of the country's largest suppliers of aggregates: the crushed stone, sand, and gravel used in virtually all forms of construction. Aggregates are not only a key component in the construction and maintenance of highways, roads, and streets, but also an indispensable ingredient in concrete. Accounting for 60% to 70% of the total volume of concrete, aggregates strongly influence concrete's freshly mixed and hardened qualities. ...extensive range of products to serve builders' growing demand Through our multi-products strategy, we leverage our purchasing power to offer our distributors and customers a full line of building materials, from plumbing and electrical supplies to paint, lumber, and lighting fixtures. Builders enjoy our convenient one-stop shopping and corresponding savings in time, logistics, and money.
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DANDOT CEMENT COMPANY LIMITED.
1. History of Dandto Cement Company Limited
Dandot was a project of State Cement Corporation, which was privatized in 1992. The project was acquired by the present management of the company through acquisition of 51 per cent shares (847.363 million). The Group acquired Dandot Cement Company Limited, a Public Limited Company involved in the Manufacture & Sale of cement in March 2000. The Company started commercial production and dispatches of cement in April 2000. The Plant is situated at P D Khan; district Jhelum, in the province of Punjab, in northern Pakistan. It is a superior dry process plant which was originally purchased from and erected by Mitsubishi (MHI) of Japan in 1984. The installed capacity of plant was 1000 metric tones per day (TPD) in 1994; it was optimized by F.L. Smidth (Denmark) to 1600 TPD. The plant is composed of sound machinery and is capable of producing high quality cement at an economical cost for many years to come. The work-force of the Plant, which numbers is excess of 800 personnel, is well experienced and diligent in nature whereas the Dandot Cement Plant itself is serviced by an adequately developed and equipped colony which is located nearby.
Dandot Cement is principally engaged in production and sale of Ordinary Portland Cement
DANDOT has been at the forefront for the past forty years, in building a strong and solid Pakistan. Our brand of cement as GHARIBWAL has endured the test of time which is reflected by its performance in the Mangla Dam, the Qadirabad Barrage, the Rasool / Sulumanki Barrage, and so forth.
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DANDOT strives to ensure and maintain its excellence in the field of sales, marketing and distribution by a strong focus on customer satisfaction and loyalty, a wide network of cement stockiest in Punjab and Azad Kashmir and resultantly, there is preference and brand loyalty for our cement by our valued patrons. DANDOT remains engaged and in constant pursuit of the endeavors to promote technological up gradation and consequently, its plant efficiency and all-round cost control. DANDOT envisions that the sustained administrative and financial restructuring measures undertaken in the previous two years shall be continued in the future periods for the Company's prosperity. DANDOT cement plant, situated in the heart of Punjab Province, is gearing itself for technological modernization in the near future and scaling the ranks of county's premier cement producers
1.2 Over the Years:
1961:
Ismail Cement Industries Limited was incorporated in Pakistan on December 29, 1960 as a Public Limited Company with Authorized Capital of Rs.50,000,000. Mr. Naseer A. Sheikh was the first chairman of the company. Registered was situated at Gardee Charity Trust Building No.2, Napier Road, Lahore and plant site was at Ismailwal, Pind Dadan Khan-Jhelum.
1962:
During the year, 320,000 'A' Class Ordinary shares were called and paid. Its shares were quoted on Karachi Stock Exchange.
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The Company appointed M/s Henry Pooley, London as their consulting Engineers and placed orders for the main cement plant (wet process) and machinery with Societe Fives Lille-Cail, Paris. The contract for the construction of the factory buildings and foundations was awarded to M/s Gammon (Pakistan) Limited and housing colony was completed by petty contractors. Initially two kilns were installed for clinker production carrying yearly capacity of 360,000 M Tons based on 300 days.
1963:
Financing from International Finance Corporation & Pakistan Industrial Credit and Investment Corporation extended to $3,038,325 and $2,278,744 respectively.
1965:
In the first year of commercial production, the Company earned a net profit of Rs. 6,595,337 (excluding depreciation).
1966:
Company announced its first dividend @ 6%.
1969:
Third kiln commissioned on trial basis on September 15, 1968 which increased the production capacity to 540,000 M tons.
1970:
Last year of eight years of tax holiday expired.
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1972:
Name changed to "DANDOT CEMENT LIMITED", Management of the Company was taken over by the Central Government on January 3, 1972 under the Economic Reforms Order (presidential Order No.1) of 1972.
1975:
Company gave its cement brand name "PAIDAR".
1978:
Company announced dividend @ 20% to its shareholders..
1981:
Company announced its highest dividend @ 22.50% to its shareholders.
1983:
Cement production was 566,526 M Tons, highest in the history of Company.
1985:
Cement production was 582,427 M Tons, highest in the history of Company.
Expansion:
By virtue of its location & potential in the market the management planned to expand the capacity of plant with the capacity of 3300 TPD. Production line raising the total production capacity to 5500 T.P.D.
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DANDOT CEMENT COMPANY LIMITED.
1.3 Company Profile
The Plant is situated at P D Khan, District Jhelum, In the province of Punjab, in northern Pakistan. It is a superior dry process plant which was originally purchased from and erected by Mitsubishi (MHI) of Japan in 1984. the installed capacity of plant was 1000 metric tons per day (Clinker Production) in 1994, it was optimized by F.L. Smidth (Denmark) to 1600 TPD clinker production. The plant is composed of sound machinery and is capable of producing high quality cement at an economical cost for many years to come. Audit Committee Mr. Saud Rasheed (Chairman) Mrs. Ayesha Mansoor Mrs. Amina Saud Director Finance Mr. Muhammad Shafique Bankers Habib Bank Limited Saudi Pak Commercial Bank Limited The Bank of Punjab Citibank N.A United Bank Limited National Bank of Pakistan Bolan Bank Limited Muslim Commercial Bank Limited PICIC Commercial Bank Limited Statutory Auditors Amin Mudassar & Co. Chartered Accountants Legal Advisor International Legal Services Chief Financial Officer Mr. Dawood Ahmad Company Secretary Mr. Abdul Khabir Shares Registrar Corplink (Pvt) Ltd. Wing Arcade 1-k Commercial, Model Town, Lahore, Pakistan. Telephone:5839182, 5887262 Fax: 5869037
? ?
? ?
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1.4 Board of Directors:
? ?
Mr. Mohammed Rasheed (Chief Executive) Phone: (+92) 61 -539229 Fax: (+92) 61 -539366 Email: [email protected]
Mrs. Tanveer Rasheed (Chairperson) Phone: (+92) 61 -539229 Fax: (+92) 61 -539366
? ?
Mr. Mansoor Rasheed (Director ) Phone: (+92) 61 -539229 Fax: (+92) 61 -539366 Email: [email protected]
Mr. Saud Rasheed (Director) Phone: (+92) 61 -539229 Fax: (+92) 61 -539366 Email: [email protected]
? ?
Ms. Rizwana Rasheed (Director ) Phone: (+92) 61 -539229 Fax: (+92) 61 -539366 Mrs. Amina Saud (Director ) Phone: (+92) 61 -539229 Fax: (+92) 61 -539366
Mrs. Ayesha Mansoor (Director) Phone: (+92) 61 -539229 Fax: (+92) 61 -539366
?
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DANDOT CEMENT COMPANY LIMITED.
1.5 Swot Analysis
1.5.1 Strengths:
1. Their location is their major strength. Ideally located in the middle of the country. From Dandot to Jamshoro,
2. They don’t have any strong competitor.
3.
They can approach the market as they are near to the main Highway so they can easily target from Lahore to Karachi.
4. They have very wide and strong distribution network about more then 400 distributors across Pakistan.
5. They have brand loyal customers.
6. They take advance payments for orders, so they don’t face problem of bad debts.
7. They have image, as they are the part of Gharibwal Group.
8. They have also converted their plant on coal from fuel that reduces their cost of production.
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9. Established dealer network as well direct sales force for large orders like from FWO, LDA, Habib Rafiq, and TEKSER etc.
10. It is the only company in Pakistan having ISO-9001 and 14001 certifications.
1.5.2 Weakness:
1. The company has no separate personnel department and less importance is given to man power.
2. Decentralized system.
3. The advertising budget is very less
4. Company has no ware house other than factory.
5. Although finance department works at site, but payroll section at head office is responsible for the salaries of employees.
6. Not constant supply of high quality coal.
7. Low quality of local coal.
8. Every body at lower level has job fear.
9. Interdepartmental relations are not good.
10. Over crowded offices 18 Comsats Institute Of Information Technology,Lahore
DANDOT CEMENT COMPANY LIMITED.
1.5.3 Opportunities:
1. As historical demand shows shortage of supply, it is a good opportunity for Dandot to increase its supply and can maximize the profits.
2. Government has started different construction works in Pakistan as government building, dams which will provide an opportunity to cement industry.
3. As this is an era of business, every body is engaged in any type of business. So commercial buildings are increasing rapidly. This is opportunity for cement industry.
4. Export to Afghanistan and central Asian countries.
1.5.4 Threats:
1. In the past the price was controlled, after privatization. The price fixing has been de regulated and private section changes the prices at their own
2. It is also a major threat for the cement industry that it might be again nationalized.
3. The other main threat for the company is their competitors.
4. The increasing competition results in price reduction war and subsequently in squeezing profits.
5. Low per capita consumption that is 72 Kg/person. 19 Comsats Institute Of Information Technology,Lahore
DANDOT CEMENT COMPANY LIMITED.
Organizational Structure
Cheif Executive
Depty General Manager (Admin & H.R)
Director (Marketing)
Director (Finance)
Director (Tech & Oper)
Manager (Admin & H.R) Sr. Depty Mrg. (H.R)
S.O D.G.Khan Karachi (Office) Multan (Office) Head Office (Lahore)
Co. Sectary
Sr. Mgr. (Administration)
G.M (Works)
Sr. Mgr. (Finance) Sr. Mgr.
Hospital
Utility Deptt.
Security
Purchase Deptt.
Office Timing
Stores
Production Deptt.
Quary Deptt.
Mechanical Deptt. Electrical Deptt.
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DANDOT CEMENT COMPANY LIMITED.
3.0 Departments
To conduct the day to day business and for effective control over operations, each organization is divided in several departments each having its specified duties and responsibilities. Since D andot is a manufacturing company therefore its departments can be divided in two major categories 1. 2. Production Departments Non Production Departments
3.1 Production Departments
Production departments are those which are directly involved with the production process. Obviously these departments are located at site.
Following the major production departments: ? .Quarry Departments. ? .Quality Control Departments.
3.1.1 Quarry Departments:
These departments are directly related to production. The main function of the department is to provide raw material for production of cement. Firstly the mountains are bomb blasted and the stones of lime stone and shale are separated then crushed into small pieces.
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3.1.2 Quality Control Department:
The
production
department
performs
all
the
activities
from
manufacturing of cement to its storage. Production department also prepares daily production report, diesel consumption report, power consumption report, and daily storage report. The process used for the product ion is dry method. This is very cheap and reduces the input cost to a great extant. This method is more environments friendly. This is a competitive edge for D andot over its competitors. The management of the production procedure is very efficient. Similar ly the quality of Dandot Cement is very high, due to which company has been able to establish its brand name .
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3.2 Non Production Departments
These are the departments which are not directly involved In the production process. 1. CIVIL DEPARTMENT. 2. ADMINISTRATION DEPARTMENT. 3. STORE. 4. CHEMICAL DEPARTMENT. 5. MECHANICAL DEPARTMENT. 6. ELECTRICAL DEPARTMENT. Some of the departments are mainly working at the head office but they also have their sub -offices at plant site. They are as following: 1. MARKETING DEPARTMENT 2. FINANCE DEPARTMENT 3. COMMERCIAL DEPARTMENT 4. MIS DEPARTMENT
3.2.1 Chemical Department
Chemical department has a laboratory. Quality control department is responsible to keep the quality of the product up to the standard. This chemical laboratory p rovides an aid to chemical department to check the quality of the production. Most important department of the procuction is chemical depatment because every experiment is done here for good quality and customer satisfaction. My main focous was in marketin g department so I
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there is a little bit explained about the production and Marketing Manager told me that there is a relation between marketing and chemical departments because marketing department told them about the demand of the market and all things o f their competiotrs about production.
3.2.2 Mechanical Department
Mechanical department perform s the routine mechanical jobs. Trained mechaincal engineers are in this department to work ...properly. related to mechanics.
3.2.3 Electrical Department
Electrical department is responsible to keep electrical equipment in good working condition. Since plant has variety of electrical instrument, It makes the role of the electrical department more Important . This is
responsibility of the electrical departmen t to control the process and to modulate any variation for the sake of maintaining uniformity and consistency in the process line. A central control room is used to achieve coordinated process control during operation.
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3.2.4 Marketing Department
Marketing department of Dandot is in the head office. Dispatch loading unit at the plant site also works under the directions of the marketing department. I got a chance to learn as an internee in Head office of Dandot Cement in lahore. The regional offices receive orders and they inform to the marketing department. Marketing department gives instructions to the loading unit. Then loading unit prepares a loading programmed according to which cement is dispatched to the customers. In marketing departmne t I observed how the marketing strategies are applied in any originazation. In these days Cement industry in Pakistan is facing too much difficulties and declining the production of Cement and prices are not settled due to the Government involvement. There are some reasons of that and one of them is I think increase of General Sales Tax (GTS) that has increased from 750 to 900 per ton that is a huge change. That’s why Cement industry is not working properly and due to that some manufacturers have stopped the production of cement due to crises. In starting of my intern ship days Dandot Cement had also stopped his production and manufacturers and Government. Due to these crises all marketing activates were not working properly. conversation was going on between
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4.0 Marketing Strategies
4.1 Target Market and Market Share:
Dandot is situated right in the middle of the country having close road links with all the four provinces of Pakistan . In cement distribution,
transportation costs play a very important role. Cement can be sold in a certain economic radius with optimal freight cost. In distant areas the supplies can be sent in times of shortage or market share can be purchased by subsid izing transportation cost. D andot’s home market Include districts of Chakwal, Sargodha, Khushab, Jehlamm
Gujranwala. W here it has very strong market share of more than 60%. In Sahiwal, Okara, Bahawalpur, Bahawalnagar and Lodhran its market share is slightly less than 50%. In addition Dandot has fairly strong presentation In the markets of Kasur, Falsalabad, T.T.Singh, Jhang , Vehari, and in the market of Lahore. DANDOT has strong position in other provinces also. DANDOT has 16% of total market share in Pakistan than other cement industries. DANDOT also exports it cement to the other foreign countries specially Afghanistan, Egypt, and in Middle East markets.
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4.2 Major Competitors:
Major competitors of DANDOT are Lucky cement, Best way cement, Fauji, Maple leaf, Thatta and Associated Cement Rohri. Because these factories can not sell all of their production in their own market due to excess supply condition of southern market, they compete in DANDOT's market at lower rates.
4. Marketing Organization:
A strong marketing and sales organization of DANDOT is a major edge over its competitors. Strength of sales force is 21. W hile there are four regional sales offices at Dandot , Multan, Lahore and Gujrat Main functions of these sales offices are: 1. 2. To maintain constant contact with the stockiest. To keep a watch over market conditions and report various developments expeditiously to the concerned quarters to take corrective measures. 3. To foresee and follow up any new project and general development in area. Sales force is deployed with respect to the geographical areas. W ith the help of the sales force DANDOT is in a position to keep a watchful eye on markets competitor's activities, supply and demand position in the respective market and to keep a constant liaison with our stockiest, industrial users and local authorities.
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DANDOT CEMENT COMPANY LIMITED.
Stockiest ship Organization:
DANDOT has a network of more than 500 stockiest spread in its markets, each handling a monthly sale ranging between 40 to 1000 tones. A significant populati on of the stockiest is located in rural areas and this gives a strong foothold to DANDOT where its competitor can not reach. But now it is decided that a loyal network of stockiest will be selected among those 500, who are regular in bookings, financially strong, and have outlets at good commercial places. These stockiest will be supported by incentive programs, advertising and credit facility.
4.3 Pricing Policy:
Presently, the pricing policy is decided keeping in mind prices of the competitors in different markets. In major markets DANDOT leads the prices. Comparatively higher prices are fixed for the markets near the plant to compensate the other areas by absorbing part of the transportation cost. Basic objective of the pricing policy is to meet competition and to improve the market share. There are some important factors, which effect the price determination. They are demand, competitor’s reaction and cost of production.
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Currently supply of the cement i s more than overall demand of the cement. But in some regions still demand is higher. Southern Punjab lies in such region. DANDOT is the only cement factory in this region and these areas come under the natural marketing zone of DANDOT. DANDOT charges comparatively higher prices in this region to compensate the transportation cost of marketing cement in farther areas. Now competition is increasing in the cement industry and factories are trying to snatch the share of each other. This is a significant factor due to which prices of the Cement is decreasing. Another significant factor is cost of production. Cost of production of DANDOT is very low as it has all the raw material available very near to the plant and the method used f or the production is also very cost effective due to its lower consumption of fuel. All these factors are important in price determination and they are in favor of DANDOT.
Offensive Strategies:
DANDOT has a biggest market share of 16% over all of cement market. Major share in its home market and its share in the other markets is also increasing. The major reason for this share expansion is offensive strategy . DANDOT is following offensive strategy and quite rightly so, because he is the biggest ce ment producer In Pakistan and it is Increasing its market share even In the excess supply cement market.
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4.4 Branding, Labeling & Packaging:
Before privatization cement of DANDOT was advertised under the brand name of Paidar CEMENT. By the time DANDOT was privatized in 2001, Paidar CEMENT was a very well established brand name. After privatization, for some time, DANDOT continued to market its Product under the brand name of Paidar CEMENT. But it was decided that it Is best to promote the product with its separate brand name because it was estimated that in the future, increased production will lead to relentless competition. So, a separate brand name, logo and package were designe d. Selling under new brand name, at that time, did not require expensive advertising effort and the product kept selling because of the deficit market conditions. The time the competition got tougher and the pressure mounted established the brand name. Th e brand name for product of DANDOT was selected to be "Dandot Cement". The label of the product is descriptive one. It introduced the cement as a separate entity. Package of the "D andot Cement" is the paper bags, which are bought from " Nishat Paper Mills. Now new paper plant is under construction for preparation of its own paper bags near Kallar Kahar. The picture of the W heel is used to show the Dynamic nature a nd quality of the cement.
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4.5 Image Building Factors:
There are three most significant image building factors of Dandot Cement. ? Brand Name ? Product Quallity ? Product Serciving
? Brand Name:
Its Brand name is most important for image building factors.
? Product Quality:
Quality of the Dandot Cement is perceived to be the best in the market. In perception of the product quality DANDOT has edge over its competitors. Most of the factories located in the south produce slag cement. Some of these companies market their product with the name of Special Portland Cement. The major consumers of the cement are aware of this practice and they perceive slag cement to be inferior quality cement. This practice of the southern companies has added to the reputation and goodwill of DANDOT as it has never produced slag cement and always concentrated on quality of the Ordinary Portland Cement. The quality control measures used at the factory are discussed earlier.
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? Product Servicing:
DANDOT only deals with the stockiest. It does not sell the product directly to the ultimate customers. Sales force keeps constant contact with the stockiest and solves their problem if any. Another unique facility, which DANDOT provide to its customers, is transportation. DANDOT gets the payment of the freight fr om the stockiest and arranges a truck for the transportation of cement. For this purpose a few reliable goods forwarding agencies are selected. This makes sure that the cement will reach to the stockiest, and the transporter will not slip away in the mid way.
Physical Distribution Management:
Cement Is stored In 3 huge silos at plant site each with a capacity of 60,000 tones. These silos work, as ware houses here unpacked cement is stored. The stockiest deposit the money in a branch of Muslim Commercial Bank and Informs the regional sales office. On receiving Challan form the bank, regional sales office informs the head office. Head office asks the dispatch department to dispatch this much quantity to that stockiest. For the transportation purpose trucks are used. For this purpose DANDOT has contact with a few goods forwarding agencies. After receiving orders from the head office the dispatch department makes the daily loading programs which help to determine the inventory
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level. Keeping in mind the produ ction capability and the loading program a date of delivery is given to the stockiest.
4.6 Advertising & Sales Promotion:
Prior to the Privatization State Cement Corporation used to market cement produced by its units under a single brand name of "STATE CEMENT". After privatization the companies taken over by the private sector are selling their product under their own brand name. For example, Lucky cement and Maple Leaf Cement. Brand name of Dandot Cement was selected for the product of DANDOT. In the beginning when the new brand name was selected. A heavy advertisement was used to increase the awareness about the brand. W ith the passage of time the brand name has been established now. Now the advertisement is not that much extensive. Basic objective of the advertisement now is just to remind the customers about the product and to reinforce consumer loyalty. To achieve this objective DANDOT concentrates more on reach and continuity than frequency. But In the peak consumption periods, for example after the flood season, frequency is also emphasized. During my internship Pakistan had affected by a disaster of flood and more than 20 million people were out of their homes and after the flood Government announced to make them able to construct their homes so It was an opperunity for Cement manufacturer, because Cement will use in bulk qu antity in flood affected areas and for the construction of bridges and other things.
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4.7 Advertisement Budget:
DANDOT has one of the biggest advertisement campaigns in the cement industry in starting of new brand name as “DANDOT” . The
advertisement bu dget is determined by the conditions of the market. This budget is set by the GM Marketing in consultation with the top management.
4.8 Order Processing:
Order Processing is also a responsibility of the sales department which is a part of marketing depa rtment. Sales department is responsible for all the activities related to the order processing. The customer forwards a demand draft or pay order for the supply of cement together with a Customer Order Form (COF) to any regional sales office or to the cent ral sales section. Quota of the customer is verified and schedule of the delivery is indicated on the COF. A receipt of the amount received and carbon copy of the COF is send to the customer. One copy is send to the sales accounting section where they are entered in the
collections day book from which posting is made in the customer's ledger. Last copy of the COF, which is printed on card, is sent to the cement dispatch section at factory. At the time of dispatch of cement from factory a dispatch advice an d bill (DA&B) Is prepared. A tally sheet for facilitating the
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counting of the cement bags being loaded is also prepared. COP number is marked In DA&B and dispatch entry is made on the back of COF. A carbon copy of DA&B is sent to the customer as an Intima tion of dispatch. A daily dispatch statement is prepared by the dispatch section, which is sent to the central sales section.
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5.0 Finance Department
Finance is the most vital discipline in any organization. Sole objective of every business establishment is to increase its capital. For this an effective control over finance is inevitable. This is possible through
productive policies and a competent team for effective Implementation of these policies. DANDOT Cement Company has the services of highly qualified
professional managers and hard working staff. This department keeps the blood running in the body of the
organization by taking care of the financ ial health of the company. This department has got a great Importance due to the vital role it plays for the sound existence of the organization. This department is responsible to look after the profits, investments, present financial position and the fut ure needs and requirements. This department has two branches one at the head office and the other at the site. For every activity the company plans to undertake, the finance department helps in the decision making through doing cost and benefit analysis and evaluating risk engaged in It. My last week was in finance department and I got knowledge about the Shares in stock exchange and some key factors of accounts of any organization that help to promote an organization. The Director Finance who is chartere d accountant controls
finance department. He controls the activities and performance of this
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department He is associated by a team of senior accountants heading different sections. There are several sections in finance department. The most important sections in accounts office were as under: 1. Payable Section 2. Payroll Section 3. Book Keeping Section 4. Sales Accounting Section 5. Payment Section 6. Audit Section
? 5.1 Payable Section:
This section maintains record of the creditors and the payments made to them. This section receives the purchase order copy from the commercial department, invoice from the vendor and receiving report from the store. This section then , makes voucher payab le and sends it to Director Finance for approval.
? 5.2 Payroll Section:
This section remains busy in making a payroll for all officers and workers of the organization. The payroll of employees at head office and plant site is prepared separately by payroll section at the head office and plant site respectively.
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This section a lso prepares salary bill of the employees. Similarly, it also takes care of the over time of the employees. Because company has to pay for their services rendered for the well being of the company after their usual hours of working.
? 5.3 Book Keeping Section:
This section keeps the record and update the books of the accounts for internal and for the external use. This section has great Importance in the organization.
? 5.4 Sales Accounting Section:
This section keeps the record of the sales of the product s of the company. This section keeps the record of the balances and the payment made by the different booking offices and branches of the MCB. This section prepares a final list of amounts submitted to the accounts of company and also compares this stateme nt with the statement sent by banks.
5.5 Payment Section:
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Set of purchase order, receiving report and Invoice is Joined with the payment voucher and forwarded by the payable section to the Director Finance for approval. On approval, whole set of document s is sent to the payment section. The payment department and the cheque number prepare a cheque and amount is entered on payment voucher. This cheque is sent to the supplier and entry is made in the payment book. Copy of the purchase order, receiving repo rt and invoices are sent back to payable section after entering payment voucher No. in the receiving report.
? 5.6 Audit Section:
This department consists of 4 people. The basic function of this section is to facilitate the auditing of the company. These people also assist the auditors. These people manage the records so that it can be used for In -house or external auditing. These p eople provide the required data to external auditors so that it should be easier for the auditors to access the data . These people have direct interaction with the auditors
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6.0 Business Analysis process
A business process is a sequence of steps performed for a given purpose. Based on this generic definition, a business process considered within the framework of trade facilitation can be defined as: A chain of logically connected activities to move goods and related information across borders from buyer to seller. Business processes are valuable organizational assets. They enable the creation and delivery of business values as defined by organizational goals. Business processes are often driven by information. In Dandot Cement Company limited as there are inter related deparments that have to corporate to their extent. The production department is in Dist. Jahlim but Head office is in Lahore , so instructions are forward from head office to that departments in production units. When there is a demand of any order to fullfill then that order is send to production department from head office and production depatment then procude and fullfill the order and deliver to the head office and then it’s the duty of Marketing and finance department to deliver the order after getting the promised amount and the process how to do the steps of getting the promised amount and documentation,I have told this before briefly. But In these days of my internship production is not going on and many employees have fired and no labour is working there due the crises of cement industeries and cement manufactures want to set the price by the Government interfearence.
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And Marketing Manager MR. Allah Navaz told me that production will start again with in one week so again all activities will start again. The process is very simple but inter related because in any activity all departments have to corporate about it because if Marketing Manager brought an order to fulfill but the credit policies about this transaction will have to get from finance department.
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7.0Weekly Reports
7.1 Ist Week Report:
I started my Intern ship in Marketing Department of Dandot Cement
Company Limited.Mr Allah Navaz was Senior Marketing Manager in Dandot Cement. In first week sir told me about the Cement Industry of Pakistan and give me some assignments on Cement Industry in Paksitan as well as at international level. He mostly compared our Cement Industry with India. He told me about Policies , Rules and Regulations of our Government. In these days Cement Industry of Pakistan is in crises and specially Dandot is one of those Cement Companies that have stoped his production. So I got too much knowledge about Cement Industry and specially properly planning when your industry is in crises.In first week I observe the marketing policies of the Dandot Cement even when no production is there.Sir daily told me their activities of the whole day and in first week I checked the previous orders of the Customers and how Company fulfilled them.
7.2 2nd Week Report:
In second week of my Intern ship, sir suggested to go to market and chceck out that how all Cement Companies are doing their marketing campaigns and get information about their retailers. I went to field with sales manager of Dandot Cement because after some days Dandot Cement is also starting Production so Marketing strategies and polices are made on emergency basis. He told me that you must keep in mind the strategies of your competitors. He gave an assignment to bring a case study of that company in which at a level production was stopped and then again started. He also told me that as a marketing manager your focus shouldn’t b to delight the customers but your focus must be on
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satisfaction because the expectations of delighted customers grow up and next time you have to do more work and that may not b profitable.
7.3 3rd Week Repot:
In third week Marketing Manager was busy in setting the new price and quality. This was a big issue to plan that because in developing countries you have to keep in mind that customers are price sensitive. For this purpose there was a meeting of Marketing , finance and Produciton departments. After this meeting sir told me about the planning and also focused that there should be a close relation between the departments of the oraginizations. In this week he gave me the responsibility of checking the previous customers account and their orders. I prepared a report and gave to him and also assigned me to come with pricing policies in developing countries.
7.4 4th week Report:
I demanded the history of the Dandot Cement Company Limited . He gave me the brief history on very next day and also told me about the production of the Cement and suggest that a Marketing Manager must have the knowledge of about the product because it will be easier to convince the customers. So he gave me basic information about the production of Cement . In these days of my forth week of Intern ship report Pakistan is affected by a disaster that is flood. And lot of buildings dams and bridiges have broken so again there is a need to construct them and this is an opportunity for Cement Industy. In the ending days of my Marketing Department sir advised me that its not compulsory that the job you will find will be according to your taste and it may be lot of faults and conventions in that organization that are not good for the organization but you have to
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prove that you are right and you have the ability to change that rule or convention but first of all you have to prove that you can and it is better for the oraginization. Don’t hate the convention that you don’t like but make yourself able to change that one.
7.5 5th Week Report:
I spend this week in Finance Department and sir told me about the financial terms that any manager should have knowledge about it. Sir told me about the shares and Accountability and Credibility. The terms used in finance were Payable Section, Payroll Section,Book keeping Section ,Sales Accounting Section , Payment Section and Audit Section. 1. Payable Section 2. Payroll Section 3. Book Keeping Section 4. Sales Accounting Section 5. Payment Section 6. Audit Section
7.6 6 th Week Report:
I spend this week in Human Resource Department and got the
knowledge about job description ,job specifications and how to ad in proper media.
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8.0 Internship Duties
8.1 Learning:
It was a tremendous experience that I have availed with devotion and commitment. I have an interest in Cement industry that’s because Cement Industry is the back bone of the economy of the country. But one thing I want to share its not easy that looks it has a great toughness and complications in its process but the overall it was nice and great. Here I am sharing some of my learning regarding my internship in different departments. ? First I met Mr. Allah Navaz the Marketing Manager of Dandot Cement . I discussed about the marketing practices going on in the Cement market. I.e. to target your customer after knowing needs with product solution of the customer need. ? ? I learnt that every problem is solved with a systematic process like from the root of the problem. During my intern ship Overall Cement Industry and specially Dandot Cement is in crises and I learned too much specially how to manage and do proper decessions in crucial conditions and I got there the overall development of any industry depends upon the policies of the Managers. ? I also performed some task I n the Marketing department like how to calculate the no of frames for a specific order and how many days are require for a specific order.
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? ? ? ?
I learnt about the marketing procedure and required of the documents and dealing with customers. During my internship I learnt about the value that customer is the only who come first. The fulfillment of the demand of customer is our basic motive. The quality control as well inception in the Cement Industry should be parallel. I learnt about the HR policies that how many types of hiring Dandot Cement is using. And what are the procedures of the Dandot about HR matters.
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?
8.2 Problems Encountered
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? ? ? ? ?
The main problem I observed there in Dandot Cement Company Limited is that there is Politics involved in that organization that is very harmful for any organization. There is no proper training of employees and by doing this they can increase their efficiency. There is no proper communications between different channels. Process is very time consuming; sub departments have to wait for further process till the order of head office. No long term planning is there for the betterment of the system and organization due to that credibility of the organization loses.
8.4 Suggestions & Recommendations
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? ? ? ? ? ? ? ? ? ?
They should use the De-Centralized strategy. Transportation system should be improved. Proper training department should be there Company should separate the personnel department from admin department The company should pay proper salary to their employees according to the laborers equal pay act of 1969. There should be no political interference. The company should use the recourses using best way and new technology. The company controls the cost of production. Sale price should reduce as compared to other companies Rate of promotion is also slow. So the employees feel dissatisfaction. It should be noticed.
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Every one at DANDOT should be agree to follow three fundamental principles; respect individuals, strive for excellence, and provide the best service.
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They should continue to evolve their structures to enable them to "Think local, act local."
8.5 References
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? Mr Allah Navaz Senior Deputy Manager Marketing ? Internet.
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doc_411351360.docx
The report explains on internship report of DANDOT Cement company.
DANDOT CEMENT COMPANY LIMITED.
In The Name Of Allah, The Most Beneficent, The Most Merciful. Read: In the Name of Your Lord Who Created, Created Man from A Clot. Read: And your Lord is The Most Bounteous. Who Taught by the Pen. Taught Man that which He did not know. Al-Quran
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Table of Contents
DEDICATION ......................................................................................................................................................... 2 TABLE OF CONTENTS........................................................................................................................ ………….. 3 EXECUTIVE SUMMARY ............................................................................................................................. 6 INTRODUCTION ....................................................................................................................................... 7 MISSION .................................................................................................................................................. 7 VISION ........................................................................................................................................ 8 ISO CERTIFICATION ................................................................................................................................ 9 PROMISE ........................................................................................................................................ 10 CHAPTER – 1 HISTORY ................................................................................................................................ 12 1.1 OVER THE YEAR ................................................................................................................................... 13 1961 ............................................................................................................................................. 14 1963 ............................................................................................................................................. 14 1965 ............................................................................................................................................. 14 1966 ............................................................................................................................................. 14 1969 ............................................................................................................................................. 14 1970 ............................................................................................................................................. 14 1972 ............................................................................................................................................. 14 1975 ............................................................................................................................................. 15 1978 ............................................................................................................................................. 15 1981 ............................................................................................................................................. 15 1983 ............................................................................................................................................. 15 1985 ............................................................................................................................................. 15 1.2 COMPANY PROFILE .............................................................................................................................. 16 1.3 BOARD OF DIRECTOR .......................................................................................................................... 17 1.4 SWOT ANALYSIS .................................................................................................................................. 18 2 Comsats Institute Of Information Technology,Lahore
DANDOT CEMENT COMPANY LIMITED.
1.5.1 STRENGTHS.......................................................................................................................... 18 1.5.2 WEAKNESS ........................................................................................................................... 19 1.5.3 OPPPRTUNITY ....................................................................................................................... 20 1.5.4 THREATS ............................................................................................................................... 20 CHAPTER 2. ORIGINIZATIONAL STRUCTURE ......................................................................................... 21
CHAPTER 3. FUNCTIONAL DEPARTMENTS ………………………………………………………………………………………… 22 3.1 PRODUCTION DEPARTMETNS ............................................................................................... 22 3.1.1 3.1.2 3.2 3.2.1 Quarry Departments ...................................................................................................... 22 Qality Control Departments ........................................................................................... 23 NON PRODUCTION DEPARTMENTS ..................................................................................... 24
Chemical Departments .............................................................................................. 24 Mechanical Departments .......................................................................................... 25 Electrical Departments .............................................................................................. 25 Marketing Department .............................................................................................. 26
3.2.2 3.2.3 3.2.4
4.1 4.2 4.3 4.4 4.5
CHAPTER 4. MARKETING STRATEGIES ........................................................................................................ 27 Targer Market & Market Share ...................................................................................... 27 Major Compititiors ........................................................................................................ 28 Pricing Policy ................................................................................................................. 29 Branding Labling and Packiging ...................................................................................... 31 Image Building Factors .................................................................................................. 32 4.5.1 Brnad Name ..................................................................................................................... 32
4.5.2 Product Quality .................................................................................................................... 32 4.5.3 Product Servicing ........................................................................................................ 33 4.6 PDM.................................................................................................................................. 34
4.7 Advertising & Sales Promotion ........................................................................................... 35 4.8 Order Processing ................................................................................................................ 35 CHAPTER NO 5. FINANCE DEPARTMENT............................................................................................. 37 5.1 Payable Section ................................................................................................................... 38 5.2 Payback Section .................................................................................................................... 38 5.3 Book Keeping Section ........................................................................................................... 39 5.4 Sales Accounting Section ...................................................................................................... 39 3 Comsats Institute Of Information Technology,Lahore
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5.5 Payment Section ................................................................................................................... 39 5.6 Audit Section .................................................................................................................................. 40 CHAPTER-6 BUSINESS ANALYSIS PROCESS ............................................................................................... 41 CHAPTER-7 WEEKLY REPORTS ..................................................................................................................... 43 7.1 7.2 7.3 7.4 7.5 7.6 Ist week Report ....................................................................................................................... 43 2nd Week Report...................................................................................................................... 43 3rd week Report ....................................................................................................................... 44 4th week Report ........................................................................................................................ 44 5th week Report ........................................................................................................................ 45 6th week Report ......................................................................................................................... 45
CHAPTER 8. INTERN SHIP DUTIES .................................................................................................... 46 8.1 8.2 8.3 8.4 Learning ................................................................................................................................. 46 Problems Encountered .......................................................................................................... 47 Suggestios & Recommendtiions ............................................................................................ 48 References ............................................................................................................................. 49
7.1 Learning ...................................................................................................................................................... 7.1 Learning ...................................................................................................................................................... 7.1 Learning ......................................................................................................................................................
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DANDOT CEMENT COMPANY LIMITED.
Executive Summary
Dandot has several competitive advantages. The cost of production is very low because the raw material used in the production process is available from a distance of 3km. The method of production adopted at DANDOT Is dry one. This method is very cost effective because of its lower cost of fuel consumption and it is very environment friendly. This lower cost of production enables the company to market its product in farther areas from its natural geographical market. in this way company is able to expand Its market. The natural geographical market of Dandot is comprised of D. G. Khan, Multan, Bahawalpur, Bahawalnagar, Rahimyar Khan and Muzaffargarh, Gujranwala, Gujrat & other cities of Southern & northern PUNJAB. Quality control of Dandot is very good. That is why company has been able to establish very strong brand loyalty. Overall In market, cement is in excess, but Dandot is not able to fulfill the orders. This shows that how much is the demand of Dandot and how strong is the brand loyalty that customer are not willing to Substitute Dandot with any other cement. That is why it is planned to increase the capacity of the plant by 3300 tones per day by the end of 2007.
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Mission Statement
DANDOT'S mission is to perform to the highest levels of professional excellence within the industry and the national economy, while catering to the needs of our ever dedicated workforce, ensuring reasonable return to the stakeholders while delivering our product to the end consumer at competitive prices to accelerate the sustained development of Pakistan.
…to constantly endeavor for excellence in all spheres of business activity, maintain its market position in key centers of Punjab and Azad Kashmir, promote mutually satisfactory relationship with our customers and other stakeholders by creating value additions, and construct a strong, durable and forward moving Pakistan.
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Vision Statement
DANDOT strives to continue its path of market growth, consolidation and improvement, spanning the areas of north and central Punjab and Azad Kashmir. Our vision is to establish a strong market presence, focused on customer brand loyalty and satisfaction, on long term basis. DANDOT envisions maintaining consistent quality, keeping abreast with technology as well as updating our dynamic managerial and human resource capabilities in a competitive business environment, and accomplishing further improvement in its market share in an aggressive growth scenario.
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I S O Certification
The GHARIBWAL Group (which’s been the parent company to Dandot cements) has gained the trust of “ISO” by fulfilling all its commandments; it’s been awarded ISO 9001:9002 Certification for its subsidiary operations at Dandot Cement Company. This was awarded in the month of May 2002. This was to ensure the vision of both “ISO” & Gharibwal Group to maintain the quality and to keep abreast with technology in a rapidly changing business world.
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Objectives
? ?
To get growth through professional management
To have a corporate culture based on decentralization, delegation of authority, encouraging the acceptance of responsibility and
inculcating the quality consciousness. ?
To strive to be a better group than what we were yesterday. For our customers, for our shareholders, for our investors, for our employees and for the environment.
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To continue to surpass our past achievements
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Promise
We constantly seek to strengthen our position as the construction industry's preferred provider and partner. So, in addition to our quality cement, we offer an array of complementary building materials and services across our industry's value chain from aggregates and paving stones to concrete and multi-products. Essential ingredients and... We are one of the country's largest suppliers of aggregates: the crushed stone, sand, and gravel used in virtually all forms of construction. Aggregates are not only a key component in the construction and maintenance of highways, roads, and streets, but also an indispensable ingredient in concrete. Accounting for 60% to 70% of the total volume of concrete, aggregates strongly influence concrete's freshly mixed and hardened qualities. ...extensive range of products to serve builders' growing demand Through our multi-products strategy, we leverage our purchasing power to offer our distributors and customers a full line of building materials, from plumbing and electrical supplies to paint, lumber, and lighting fixtures. Builders enjoy our convenient one-stop shopping and corresponding savings in time, logistics, and money.
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DANDOT CEMENT COMPANY LIMITED.
1. History of Dandto Cement Company Limited
Dandot was a project of State Cement Corporation, which was privatized in 1992. The project was acquired by the present management of the company through acquisition of 51 per cent shares (847.363 million). The Group acquired Dandot Cement Company Limited, a Public Limited Company involved in the Manufacture & Sale of cement in March 2000. The Company started commercial production and dispatches of cement in April 2000. The Plant is situated at P D Khan; district Jhelum, in the province of Punjab, in northern Pakistan. It is a superior dry process plant which was originally purchased from and erected by Mitsubishi (MHI) of Japan in 1984. The installed capacity of plant was 1000 metric tones per day (TPD) in 1994; it was optimized by F.L. Smidth (Denmark) to 1600 TPD. The plant is composed of sound machinery and is capable of producing high quality cement at an economical cost for many years to come. The work-force of the Plant, which numbers is excess of 800 personnel, is well experienced and diligent in nature whereas the Dandot Cement Plant itself is serviced by an adequately developed and equipped colony which is located nearby.
Dandot Cement is principally engaged in production and sale of Ordinary Portland Cement
DANDOT has been at the forefront for the past forty years, in building a strong and solid Pakistan. Our brand of cement as GHARIBWAL has endured the test of time which is reflected by its performance in the Mangla Dam, the Qadirabad Barrage, the Rasool / Sulumanki Barrage, and so forth.
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DANDOT strives to ensure and maintain its excellence in the field of sales, marketing and distribution by a strong focus on customer satisfaction and loyalty, a wide network of cement stockiest in Punjab and Azad Kashmir and resultantly, there is preference and brand loyalty for our cement by our valued patrons. DANDOT remains engaged and in constant pursuit of the endeavors to promote technological up gradation and consequently, its plant efficiency and all-round cost control. DANDOT envisions that the sustained administrative and financial restructuring measures undertaken in the previous two years shall be continued in the future periods for the Company's prosperity. DANDOT cement plant, situated in the heart of Punjab Province, is gearing itself for technological modernization in the near future and scaling the ranks of county's premier cement producers
1.2 Over the Years:
1961:
Ismail Cement Industries Limited was incorporated in Pakistan on December 29, 1960 as a Public Limited Company with Authorized Capital of Rs.50,000,000. Mr. Naseer A. Sheikh was the first chairman of the company. Registered was situated at Gardee Charity Trust Building No.2, Napier Road, Lahore and plant site was at Ismailwal, Pind Dadan Khan-Jhelum.
1962:
During the year, 320,000 'A' Class Ordinary shares were called and paid. Its shares were quoted on Karachi Stock Exchange.
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The Company appointed M/s Henry Pooley, London as their consulting Engineers and placed orders for the main cement plant (wet process) and machinery with Societe Fives Lille-Cail, Paris. The contract for the construction of the factory buildings and foundations was awarded to M/s Gammon (Pakistan) Limited and housing colony was completed by petty contractors. Initially two kilns were installed for clinker production carrying yearly capacity of 360,000 M Tons based on 300 days.
1963:
Financing from International Finance Corporation & Pakistan Industrial Credit and Investment Corporation extended to $3,038,325 and $2,278,744 respectively.
1965:
In the first year of commercial production, the Company earned a net profit of Rs. 6,595,337 (excluding depreciation).
1966:
Company announced its first dividend @ 6%.
1969:
Third kiln commissioned on trial basis on September 15, 1968 which increased the production capacity to 540,000 M tons.
1970:
Last year of eight years of tax holiday expired.
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1972:
Name changed to "DANDOT CEMENT LIMITED", Management of the Company was taken over by the Central Government on January 3, 1972 under the Economic Reforms Order (presidential Order No.1) of 1972.
1975:
Company gave its cement brand name "PAIDAR".
1978:
Company announced dividend @ 20% to its shareholders..
1981:
Company announced its highest dividend @ 22.50% to its shareholders.
1983:
Cement production was 566,526 M Tons, highest in the history of Company.
1985:
Cement production was 582,427 M Tons, highest in the history of Company.
Expansion:
By virtue of its location & potential in the market the management planned to expand the capacity of plant with the capacity of 3300 TPD. Production line raising the total production capacity to 5500 T.P.D.
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1.3 Company Profile
The Plant is situated at P D Khan, District Jhelum, In the province of Punjab, in northern Pakistan. It is a superior dry process plant which was originally purchased from and erected by Mitsubishi (MHI) of Japan in 1984. the installed capacity of plant was 1000 metric tons per day (Clinker Production) in 1994, it was optimized by F.L. Smidth (Denmark) to 1600 TPD clinker production. The plant is composed of sound machinery and is capable of producing high quality cement at an economical cost for many years to come. Audit Committee Mr. Saud Rasheed (Chairman) Mrs. Ayesha Mansoor Mrs. Amina Saud Director Finance Mr. Muhammad Shafique Bankers Habib Bank Limited Saudi Pak Commercial Bank Limited The Bank of Punjab Citibank N.A United Bank Limited National Bank of Pakistan Bolan Bank Limited Muslim Commercial Bank Limited PICIC Commercial Bank Limited Statutory Auditors Amin Mudassar & Co. Chartered Accountants Legal Advisor International Legal Services Chief Financial Officer Mr. Dawood Ahmad Company Secretary Mr. Abdul Khabir Shares Registrar Corplink (Pvt) Ltd. Wing Arcade 1-k Commercial, Model Town, Lahore, Pakistan. Telephone:5839182, 5887262 Fax: 5869037
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1.4 Board of Directors:
? ?
Mr. Mohammed Rasheed (Chief Executive) Phone: (+92) 61 -539229 Fax: (+92) 61 -539366 Email: [email protected]
Mrs. Tanveer Rasheed (Chairperson) Phone: (+92) 61 -539229 Fax: (+92) 61 -539366
? ?
Mr. Mansoor Rasheed (Director ) Phone: (+92) 61 -539229 Fax: (+92) 61 -539366 Email: [email protected]
Mr. Saud Rasheed (Director) Phone: (+92) 61 -539229 Fax: (+92) 61 -539366 Email: [email protected]
? ?
Ms. Rizwana Rasheed (Director ) Phone: (+92) 61 -539229 Fax: (+92) 61 -539366 Mrs. Amina Saud (Director ) Phone: (+92) 61 -539229 Fax: (+92) 61 -539366
Mrs. Ayesha Mansoor (Director) Phone: (+92) 61 -539229 Fax: (+92) 61 -539366
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1.5 Swot Analysis
1.5.1 Strengths:
1. Their location is their major strength. Ideally located in the middle of the country. From Dandot to Jamshoro,
2. They don’t have any strong competitor.
3.
They can approach the market as they are near to the main Highway so they can easily target from Lahore to Karachi.
4. They have very wide and strong distribution network about more then 400 distributors across Pakistan.
5. They have brand loyal customers.
6. They take advance payments for orders, so they don’t face problem of bad debts.
7. They have image, as they are the part of Gharibwal Group.
8. They have also converted their plant on coal from fuel that reduces their cost of production.
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DANDOT CEMENT COMPANY LIMITED.
9. Established dealer network as well direct sales force for large orders like from FWO, LDA, Habib Rafiq, and TEKSER etc.
10. It is the only company in Pakistan having ISO-9001 and 14001 certifications.
1.5.2 Weakness:
1. The company has no separate personnel department and less importance is given to man power.
2. Decentralized system.
3. The advertising budget is very less
4. Company has no ware house other than factory.
5. Although finance department works at site, but payroll section at head office is responsible for the salaries of employees.
6. Not constant supply of high quality coal.
7. Low quality of local coal.
8. Every body at lower level has job fear.
9. Interdepartmental relations are not good.
10. Over crowded offices 18 Comsats Institute Of Information Technology,Lahore
DANDOT CEMENT COMPANY LIMITED.
1.5.3 Opportunities:
1. As historical demand shows shortage of supply, it is a good opportunity for Dandot to increase its supply and can maximize the profits.
2. Government has started different construction works in Pakistan as government building, dams which will provide an opportunity to cement industry.
3. As this is an era of business, every body is engaged in any type of business. So commercial buildings are increasing rapidly. This is opportunity for cement industry.
4. Export to Afghanistan and central Asian countries.
1.5.4 Threats:
1. In the past the price was controlled, after privatization. The price fixing has been de regulated and private section changes the prices at their own
2. It is also a major threat for the cement industry that it might be again nationalized.
3. The other main threat for the company is their competitors.
4. The increasing competition results in price reduction war and subsequently in squeezing profits.
5. Low per capita consumption that is 72 Kg/person. 19 Comsats Institute Of Information Technology,Lahore
DANDOT CEMENT COMPANY LIMITED.
Organizational Structure
Cheif Executive
Depty General Manager (Admin & H.R)
Director (Marketing)
Director (Finance)
Director (Tech & Oper)
Manager (Admin & H.R) Sr. Depty Mrg. (H.R)
S.O D.G.Khan Karachi (Office) Multan (Office) Head Office (Lahore)
Co. Sectary
Sr. Mgr. (Administration)
G.M (Works)
Sr. Mgr. (Finance) Sr. Mgr.
Hospital
Utility Deptt.
Security
Purchase Deptt.
Office Timing
Stores
Production Deptt.
Quary Deptt.
Mechanical Deptt. Electrical Deptt.
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DANDOT CEMENT COMPANY LIMITED.
3.0 Departments
To conduct the day to day business and for effective control over operations, each organization is divided in several departments each having its specified duties and responsibilities. Since D andot is a manufacturing company therefore its departments can be divided in two major categories 1. 2. Production Departments Non Production Departments
3.1 Production Departments
Production departments are those which are directly involved with the production process. Obviously these departments are located at site.
Following the major production departments: ? .Quarry Departments. ? .Quality Control Departments.
3.1.1 Quarry Departments:
These departments are directly related to production. The main function of the department is to provide raw material for production of cement. Firstly the mountains are bomb blasted and the stones of lime stone and shale are separated then crushed into small pieces.
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DANDOT CEMENT COMPANY LIMITED.
3.1.2 Quality Control Department:
The
production
department
performs
all
the
activities
from
manufacturing of cement to its storage. Production department also prepares daily production report, diesel consumption report, power consumption report, and daily storage report. The process used for the product ion is dry method. This is very cheap and reduces the input cost to a great extant. This method is more environments friendly. This is a competitive edge for D andot over its competitors. The management of the production procedure is very efficient. Similar ly the quality of Dandot Cement is very high, due to which company has been able to establish its brand name .
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DANDOT CEMENT COMPANY LIMITED.
3.2 Non Production Departments
These are the departments which are not directly involved In the production process. 1. CIVIL DEPARTMENT. 2. ADMINISTRATION DEPARTMENT. 3. STORE. 4. CHEMICAL DEPARTMENT. 5. MECHANICAL DEPARTMENT. 6. ELECTRICAL DEPARTMENT. Some of the departments are mainly working at the head office but they also have their sub -offices at plant site. They are as following: 1. MARKETING DEPARTMENT 2. FINANCE DEPARTMENT 3. COMMERCIAL DEPARTMENT 4. MIS DEPARTMENT
3.2.1 Chemical Department
Chemical department has a laboratory. Quality control department is responsible to keep the quality of the product up to the standard. This chemical laboratory p rovides an aid to chemical department to check the quality of the production. Most important department of the procuction is chemical depatment because every experiment is done here for good quality and customer satisfaction. My main focous was in marketin g department so I
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there is a little bit explained about the production and Marketing Manager told me that there is a relation between marketing and chemical departments because marketing department told them about the demand of the market and all things o f their competiotrs about production.
3.2.2 Mechanical Department
Mechanical department perform s the routine mechanical jobs. Trained mechaincal engineers are in this department to work ...properly. related to mechanics.
3.2.3 Electrical Department
Electrical department is responsible to keep electrical equipment in good working condition. Since plant has variety of electrical instrument, It makes the role of the electrical department more Important . This is
responsibility of the electrical departmen t to control the process and to modulate any variation for the sake of maintaining uniformity and consistency in the process line. A central control room is used to achieve coordinated process control during operation.
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DANDOT CEMENT COMPANY LIMITED.
3.2.4 Marketing Department
Marketing department of Dandot is in the head office. Dispatch loading unit at the plant site also works under the directions of the marketing department. I got a chance to learn as an internee in Head office of Dandot Cement in lahore. The regional offices receive orders and they inform to the marketing department. Marketing department gives instructions to the loading unit. Then loading unit prepares a loading programmed according to which cement is dispatched to the customers. In marketing departmne t I observed how the marketing strategies are applied in any originazation. In these days Cement industry in Pakistan is facing too much difficulties and declining the production of Cement and prices are not settled due to the Government involvement. There are some reasons of that and one of them is I think increase of General Sales Tax (GTS) that has increased from 750 to 900 per ton that is a huge change. That’s why Cement industry is not working properly and due to that some manufacturers have stopped the production of cement due to crises. In starting of my intern ship days Dandot Cement had also stopped his production and manufacturers and Government. Due to these crises all marketing activates were not working properly. conversation was going on between
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DANDOT CEMENT COMPANY LIMITED.
4.0 Marketing Strategies
4.1 Target Market and Market Share:
Dandot is situated right in the middle of the country having close road links with all the four provinces of Pakistan . In cement distribution,
transportation costs play a very important role. Cement can be sold in a certain economic radius with optimal freight cost. In distant areas the supplies can be sent in times of shortage or market share can be purchased by subsid izing transportation cost. D andot’s home market Include districts of Chakwal, Sargodha, Khushab, Jehlamm
Gujranwala. W here it has very strong market share of more than 60%. In Sahiwal, Okara, Bahawalpur, Bahawalnagar and Lodhran its market share is slightly less than 50%. In addition Dandot has fairly strong presentation In the markets of Kasur, Falsalabad, T.T.Singh, Jhang , Vehari, and in the market of Lahore. DANDOT has strong position in other provinces also. DANDOT has 16% of total market share in Pakistan than other cement industries. DANDOT also exports it cement to the other foreign countries specially Afghanistan, Egypt, and in Middle East markets.
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DANDOT CEMENT COMPANY LIMITED.
4.2 Major Competitors:
Major competitors of DANDOT are Lucky cement, Best way cement, Fauji, Maple leaf, Thatta and Associated Cement Rohri. Because these factories can not sell all of their production in their own market due to excess supply condition of southern market, they compete in DANDOT's market at lower rates.
4. Marketing Organization:
A strong marketing and sales organization of DANDOT is a major edge over its competitors. Strength of sales force is 21. W hile there are four regional sales offices at Dandot , Multan, Lahore and Gujrat Main functions of these sales offices are: 1. 2. To maintain constant contact with the stockiest. To keep a watch over market conditions and report various developments expeditiously to the concerned quarters to take corrective measures. 3. To foresee and follow up any new project and general development in area. Sales force is deployed with respect to the geographical areas. W ith the help of the sales force DANDOT is in a position to keep a watchful eye on markets competitor's activities, supply and demand position in the respective market and to keep a constant liaison with our stockiest, industrial users and local authorities.
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DANDOT CEMENT COMPANY LIMITED.
Stockiest ship Organization:
DANDOT has a network of more than 500 stockiest spread in its markets, each handling a monthly sale ranging between 40 to 1000 tones. A significant populati on of the stockiest is located in rural areas and this gives a strong foothold to DANDOT where its competitor can not reach. But now it is decided that a loyal network of stockiest will be selected among those 500, who are regular in bookings, financially strong, and have outlets at good commercial places. These stockiest will be supported by incentive programs, advertising and credit facility.
4.3 Pricing Policy:
Presently, the pricing policy is decided keeping in mind prices of the competitors in different markets. In major markets DANDOT leads the prices. Comparatively higher prices are fixed for the markets near the plant to compensate the other areas by absorbing part of the transportation cost. Basic objective of the pricing policy is to meet competition and to improve the market share. There are some important factors, which effect the price determination. They are demand, competitor’s reaction and cost of production.
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Currently supply of the cement i s more than overall demand of the cement. But in some regions still demand is higher. Southern Punjab lies in such region. DANDOT is the only cement factory in this region and these areas come under the natural marketing zone of DANDOT. DANDOT charges comparatively higher prices in this region to compensate the transportation cost of marketing cement in farther areas. Now competition is increasing in the cement industry and factories are trying to snatch the share of each other. This is a significant factor due to which prices of the Cement is decreasing. Another significant factor is cost of production. Cost of production of DANDOT is very low as it has all the raw material available very near to the plant and the method used f or the production is also very cost effective due to its lower consumption of fuel. All these factors are important in price determination and they are in favor of DANDOT.
Offensive Strategies:
DANDOT has a biggest market share of 16% over all of cement market. Major share in its home market and its share in the other markets is also increasing. The major reason for this share expansion is offensive strategy . DANDOT is following offensive strategy and quite rightly so, because he is the biggest ce ment producer In Pakistan and it is Increasing its market share even In the excess supply cement market.
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DANDOT CEMENT COMPANY LIMITED.
4.4 Branding, Labeling & Packaging:
Before privatization cement of DANDOT was advertised under the brand name of Paidar CEMENT. By the time DANDOT was privatized in 2001, Paidar CEMENT was a very well established brand name. After privatization, for some time, DANDOT continued to market its Product under the brand name of Paidar CEMENT. But it was decided that it Is best to promote the product with its separate brand name because it was estimated that in the future, increased production will lead to relentless competition. So, a separate brand name, logo and package were designe d. Selling under new brand name, at that time, did not require expensive advertising effort and the product kept selling because of the deficit market conditions. The time the competition got tougher and the pressure mounted established the brand name. Th e brand name for product of DANDOT was selected to be "Dandot Cement". The label of the product is descriptive one. It introduced the cement as a separate entity. Package of the "D andot Cement" is the paper bags, which are bought from " Nishat Paper Mills. Now new paper plant is under construction for preparation of its own paper bags near Kallar Kahar. The picture of the W heel is used to show the Dynamic nature a nd quality of the cement.
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DANDOT CEMENT COMPANY LIMITED.
4.5 Image Building Factors:
There are three most significant image building factors of Dandot Cement. ? Brand Name ? Product Quallity ? Product Serciving
? Brand Name:
Its Brand name is most important for image building factors.
? Product Quality:
Quality of the Dandot Cement is perceived to be the best in the market. In perception of the product quality DANDOT has edge over its competitors. Most of the factories located in the south produce slag cement. Some of these companies market their product with the name of Special Portland Cement. The major consumers of the cement are aware of this practice and they perceive slag cement to be inferior quality cement. This practice of the southern companies has added to the reputation and goodwill of DANDOT as it has never produced slag cement and always concentrated on quality of the Ordinary Portland Cement. The quality control measures used at the factory are discussed earlier.
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DANDOT CEMENT COMPANY LIMITED.
? Product Servicing:
DANDOT only deals with the stockiest. It does not sell the product directly to the ultimate customers. Sales force keeps constant contact with the stockiest and solves their problem if any. Another unique facility, which DANDOT provide to its customers, is transportation. DANDOT gets the payment of the freight fr om the stockiest and arranges a truck for the transportation of cement. For this purpose a few reliable goods forwarding agencies are selected. This makes sure that the cement will reach to the stockiest, and the transporter will not slip away in the mid way.
Physical Distribution Management:
Cement Is stored In 3 huge silos at plant site each with a capacity of 60,000 tones. These silos work, as ware houses here unpacked cement is stored. The stockiest deposit the money in a branch of Muslim Commercial Bank and Informs the regional sales office. On receiving Challan form the bank, regional sales office informs the head office. Head office asks the dispatch department to dispatch this much quantity to that stockiest. For the transportation purpose trucks are used. For this purpose DANDOT has contact with a few goods forwarding agencies. After receiving orders from the head office the dispatch department makes the daily loading programs which help to determine the inventory
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level. Keeping in mind the produ ction capability and the loading program a date of delivery is given to the stockiest.
4.6 Advertising & Sales Promotion:
Prior to the Privatization State Cement Corporation used to market cement produced by its units under a single brand name of "STATE CEMENT". After privatization the companies taken over by the private sector are selling their product under their own brand name. For example, Lucky cement and Maple Leaf Cement. Brand name of Dandot Cement was selected for the product of DANDOT. In the beginning when the new brand name was selected. A heavy advertisement was used to increase the awareness about the brand. W ith the passage of time the brand name has been established now. Now the advertisement is not that much extensive. Basic objective of the advertisement now is just to remind the customers about the product and to reinforce consumer loyalty. To achieve this objective DANDOT concentrates more on reach and continuity than frequency. But In the peak consumption periods, for example after the flood season, frequency is also emphasized. During my internship Pakistan had affected by a disaster of flood and more than 20 million people were out of their homes and after the flood Government announced to make them able to construct their homes so It was an opperunity for Cement manufacturer, because Cement will use in bulk qu antity in flood affected areas and for the construction of bridges and other things.
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DANDOT CEMENT COMPANY LIMITED.
4.7 Advertisement Budget:
DANDOT has one of the biggest advertisement campaigns in the cement industry in starting of new brand name as “DANDOT” . The
advertisement bu dget is determined by the conditions of the market. This budget is set by the GM Marketing in consultation with the top management.
4.8 Order Processing:
Order Processing is also a responsibility of the sales department which is a part of marketing depa rtment. Sales department is responsible for all the activities related to the order processing. The customer forwards a demand draft or pay order for the supply of cement together with a Customer Order Form (COF) to any regional sales office or to the cent ral sales section. Quota of the customer is verified and schedule of the delivery is indicated on the COF. A receipt of the amount received and carbon copy of the COF is send to the customer. One copy is send to the sales accounting section where they are entered in the
collections day book from which posting is made in the customer's ledger. Last copy of the COF, which is printed on card, is sent to the cement dispatch section at factory. At the time of dispatch of cement from factory a dispatch advice an d bill (DA&B) Is prepared. A tally sheet for facilitating the
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DANDOT CEMENT COMPANY LIMITED.
counting of the cement bags being loaded is also prepared. COP number is marked In DA&B and dispatch entry is made on the back of COF. A carbon copy of DA&B is sent to the customer as an Intima tion of dispatch. A daily dispatch statement is prepared by the dispatch section, which is sent to the central sales section.
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DANDOT CEMENT COMPANY LIMITED.
5.0 Finance Department
Finance is the most vital discipline in any organization. Sole objective of every business establishment is to increase its capital. For this an effective control over finance is inevitable. This is possible through
productive policies and a competent team for effective Implementation of these policies. DANDOT Cement Company has the services of highly qualified
professional managers and hard working staff. This department keeps the blood running in the body of the
organization by taking care of the financ ial health of the company. This department has got a great Importance due to the vital role it plays for the sound existence of the organization. This department is responsible to look after the profits, investments, present financial position and the fut ure needs and requirements. This department has two branches one at the head office and the other at the site. For every activity the company plans to undertake, the finance department helps in the decision making through doing cost and benefit analysis and evaluating risk engaged in It. My last week was in finance department and I got knowledge about the Shares in stock exchange and some key factors of accounts of any organization that help to promote an organization. The Director Finance who is chartere d accountant controls
finance department. He controls the activities and performance of this
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DANDOT CEMENT COMPANY LIMITED.
department He is associated by a team of senior accountants heading different sections. There are several sections in finance department. The most important sections in accounts office were as under: 1. Payable Section 2. Payroll Section 3. Book Keeping Section 4. Sales Accounting Section 5. Payment Section 6. Audit Section
? 5.1 Payable Section:
This section maintains record of the creditors and the payments made to them. This section receives the purchase order copy from the commercial department, invoice from the vendor and receiving report from the store. This section then , makes voucher payab le and sends it to Director Finance for approval.
? 5.2 Payroll Section:
This section remains busy in making a payroll for all officers and workers of the organization. The payroll of employees at head office and plant site is prepared separately by payroll section at the head office and plant site respectively.
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DANDOT CEMENT COMPANY LIMITED.
This section a lso prepares salary bill of the employees. Similarly, it also takes care of the over time of the employees. Because company has to pay for their services rendered for the well being of the company after their usual hours of working.
? 5.3 Book Keeping Section:
This section keeps the record and update the books of the accounts for internal and for the external use. This section has great Importance in the organization.
? 5.4 Sales Accounting Section:
This section keeps the record of the sales of the product s of the company. This section keeps the record of the balances and the payment made by the different booking offices and branches of the MCB. This section prepares a final list of amounts submitted to the accounts of company and also compares this stateme nt with the statement sent by banks.
5.5 Payment Section:
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DANDOT CEMENT COMPANY LIMITED.
Set of purchase order, receiving report and Invoice is Joined with the payment voucher and forwarded by the payable section to the Director Finance for approval. On approval, whole set of document s is sent to the payment section. The payment department and the cheque number prepare a cheque and amount is entered on payment voucher. This cheque is sent to the supplier and entry is made in the payment book. Copy of the purchase order, receiving repo rt and invoices are sent back to payable section after entering payment voucher No. in the receiving report.
? 5.6 Audit Section:
This department consists of 4 people. The basic function of this section is to facilitate the auditing of the company. These people also assist the auditors. These people manage the records so that it can be used for In -house or external auditing. These p eople provide the required data to external auditors so that it should be easier for the auditors to access the data . These people have direct interaction with the auditors
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DANDOT CEMENT COMPANY LIMITED.
6.0 Business Analysis process
A business process is a sequence of steps performed for a given purpose. Based on this generic definition, a business process considered within the framework of trade facilitation can be defined as: A chain of logically connected activities to move goods and related information across borders from buyer to seller. Business processes are valuable organizational assets. They enable the creation and delivery of business values as defined by organizational goals. Business processes are often driven by information. In Dandot Cement Company limited as there are inter related deparments that have to corporate to their extent. The production department is in Dist. Jahlim but Head office is in Lahore , so instructions are forward from head office to that departments in production units. When there is a demand of any order to fullfill then that order is send to production department from head office and production depatment then procude and fullfill the order and deliver to the head office and then it’s the duty of Marketing and finance department to deliver the order after getting the promised amount and the process how to do the steps of getting the promised amount and documentation,I have told this before briefly. But In these days of my internship production is not going on and many employees have fired and no labour is working there due the crises of cement industeries and cement manufactures want to set the price by the Government interfearence.
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And Marketing Manager MR. Allah Navaz told me that production will start again with in one week so again all activities will start again. The process is very simple but inter related because in any activity all departments have to corporate about it because if Marketing Manager brought an order to fulfill but the credit policies about this transaction will have to get from finance department.
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7.0Weekly Reports
7.1 Ist Week Report:
I started my Intern ship in Marketing Department of Dandot Cement
Company Limited.Mr Allah Navaz was Senior Marketing Manager in Dandot Cement. In first week sir told me about the Cement Industry of Pakistan and give me some assignments on Cement Industry in Paksitan as well as at international level. He mostly compared our Cement Industry with India. He told me about Policies , Rules and Regulations of our Government. In these days Cement Industry of Pakistan is in crises and specially Dandot is one of those Cement Companies that have stoped his production. So I got too much knowledge about Cement Industry and specially properly planning when your industry is in crises.In first week I observe the marketing policies of the Dandot Cement even when no production is there.Sir daily told me their activities of the whole day and in first week I checked the previous orders of the Customers and how Company fulfilled them.
7.2 2nd Week Report:
In second week of my Intern ship, sir suggested to go to market and chceck out that how all Cement Companies are doing their marketing campaigns and get information about their retailers. I went to field with sales manager of Dandot Cement because after some days Dandot Cement is also starting Production so Marketing strategies and polices are made on emergency basis. He told me that you must keep in mind the strategies of your competitors. He gave an assignment to bring a case study of that company in which at a level production was stopped and then again started. He also told me that as a marketing manager your focus shouldn’t b to delight the customers but your focus must be on
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satisfaction because the expectations of delighted customers grow up and next time you have to do more work and that may not b profitable.
7.3 3rd Week Repot:
In third week Marketing Manager was busy in setting the new price and quality. This was a big issue to plan that because in developing countries you have to keep in mind that customers are price sensitive. For this purpose there was a meeting of Marketing , finance and Produciton departments. After this meeting sir told me about the planning and also focused that there should be a close relation between the departments of the oraginizations. In this week he gave me the responsibility of checking the previous customers account and their orders. I prepared a report and gave to him and also assigned me to come with pricing policies in developing countries.
7.4 4th week Report:
I demanded the history of the Dandot Cement Company Limited . He gave me the brief history on very next day and also told me about the production of the Cement and suggest that a Marketing Manager must have the knowledge of about the product because it will be easier to convince the customers. So he gave me basic information about the production of Cement . In these days of my forth week of Intern ship report Pakistan is affected by a disaster that is flood. And lot of buildings dams and bridiges have broken so again there is a need to construct them and this is an opportunity for Cement Industy. In the ending days of my Marketing Department sir advised me that its not compulsory that the job you will find will be according to your taste and it may be lot of faults and conventions in that organization that are not good for the organization but you have to
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DANDOT CEMENT COMPANY LIMITED.
prove that you are right and you have the ability to change that rule or convention but first of all you have to prove that you can and it is better for the oraginization. Don’t hate the convention that you don’t like but make yourself able to change that one.
7.5 5th Week Report:
I spend this week in Finance Department and sir told me about the financial terms that any manager should have knowledge about it. Sir told me about the shares and Accountability and Credibility. The terms used in finance were Payable Section, Payroll Section,Book keeping Section ,Sales Accounting Section , Payment Section and Audit Section. 1. Payable Section 2. Payroll Section 3. Book Keeping Section 4. Sales Accounting Section 5. Payment Section 6. Audit Section
7.6 6 th Week Report:
I spend this week in Human Resource Department and got the
knowledge about job description ,job specifications and how to ad in proper media.
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8.0 Internship Duties
8.1 Learning:
It was a tremendous experience that I have availed with devotion and commitment. I have an interest in Cement industry that’s because Cement Industry is the back bone of the economy of the country. But one thing I want to share its not easy that looks it has a great toughness and complications in its process but the overall it was nice and great. Here I am sharing some of my learning regarding my internship in different departments. ? First I met Mr. Allah Navaz the Marketing Manager of Dandot Cement . I discussed about the marketing practices going on in the Cement market. I.e. to target your customer after knowing needs with product solution of the customer need. ? ? I learnt that every problem is solved with a systematic process like from the root of the problem. During my intern ship Overall Cement Industry and specially Dandot Cement is in crises and I learned too much specially how to manage and do proper decessions in crucial conditions and I got there the overall development of any industry depends upon the policies of the Managers. ? I also performed some task I n the Marketing department like how to calculate the no of frames for a specific order and how many days are require for a specific order.
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DANDOT CEMENT COMPANY LIMITED.
? ? ? ?
I learnt about the marketing procedure and required of the documents and dealing with customers. During my internship I learnt about the value that customer is the only who come first. The fulfillment of the demand of customer is our basic motive. The quality control as well inception in the Cement Industry should be parallel. I learnt about the HR policies that how many types of hiring Dandot Cement is using. And what are the procedures of the Dandot about HR matters.
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DANDOT CEMENT COMPANY LIMITED.
?
8.2 Problems Encountered
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DANDOT CEMENT COMPANY LIMITED.
? ? ? ? ?
The main problem I observed there in Dandot Cement Company Limited is that there is Politics involved in that organization that is very harmful for any organization. There is no proper training of employees and by doing this they can increase their efficiency. There is no proper communications between different channels. Process is very time consuming; sub departments have to wait for further process till the order of head office. No long term planning is there for the betterment of the system and organization due to that credibility of the organization loses.
8.4 Suggestions & Recommendations
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DANDOT CEMENT COMPANY LIMITED.
? ? ? ? ? ? ? ? ? ?
They should use the De-Centralized strategy. Transportation system should be improved. Proper training department should be there Company should separate the personnel department from admin department The company should pay proper salary to their employees according to the laborers equal pay act of 1969. There should be no political interference. The company should use the recourses using best way and new technology. The company controls the cost of production. Sale price should reduce as compared to other companies Rate of promotion is also slow. So the employees feel dissatisfaction. It should be noticed.
?
Every one at DANDOT should be agree to follow three fundamental principles; respect individuals, strive for excellence, and provide the best service.
?
They should continue to evolve their structures to enable them to "Think local, act local."
8.5 References
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DANDOT CEMENT COMPANY LIMITED.
? Mr Allah Navaz Senior Deputy Manager Marketing ? Internet.
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