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Geo-Design ジオデザイン 一級建築士事務所株式会社 > article > Company objectives overview of pak electron limited

Company objectives overview of pak electron limited

Pak Electron Limited (PEL) is one of the better manufacturer company of electric goods in Pakistan. It had been established in the entire year of 1956 in technological collaboration with M/s AEG of Germany. In 1978 company was taken over by Saigol Group of Companies. The company is definitely participating towards the improvement and development of the engineering division in Pakistan by launching a whole lot of quality electrical tools and kitchen appliances and by producing lot of engineers skilled employees and specialists through its training programmes.

PEL has continuously introducing services to its range. Due to this PEL has gained great target in the sales department. At the juncture the business was simply manufacturing transforms and move gears. With the Saigol in management, PEL begun expanding its product range by getting into air conditioner manufacturing.

In the year on 1981, PEL launched window AIR CONDITIONING EQUIPMENT with the technical collaboration

of General Corporation of Japan.

In 1986-87 the company introduced refrigerator in specialized collaboration with M/S Airston of Italy


In 2006, enterprise had started making of Split AIR CONDITIONING EQUIPMENT as the customer choice has shifted from windows type to Split AC.

The company divided in two category

Appliances Division

Power Division

Statement Of The Problem

During the last year or two styles in Pakistan using home appliances has changed because of rocket switch in technology and different entry of brands .PEL also introduced its Split AIR CONDITIONING EQUIPMENT on the market. PEL electric is facing tough time in the Split Air Conditioner their brand image isn’t strong in this category. Additional competitor has good brand name and brand graphic and doing good organization like Mitsubishi, Seek the services of ,LG etc.

1.2 Vision

‘To excel in rendering engineering things and services through continuous



To provide quality items & services to complete satisfaction of our consumers and maximize returns for all stakeholders through optimum usage of resources.

To concentrate on personal expansion of our employees to meet up future challenges

To promote good governance, corporate values and a secure working environment with a solid sense of social responsibility



The strengths , weakness, chances and threats of PEL happen to be mentioned bellow:


Brand Name

PEL has developed a good brand graphic in its consumer’s head sue to top quality and low prices. The client of PEL generally prefer its home appliances like refrigerator, micro waves Owen water cooler etc. PEL is quite popular provider in Pakistan and every one knows about PEL products and its own brand name. This is the reason that PEL is a market leader in terms of Window AC

Good Dealer Network

Its another advantage for PEL that it has generated a good supplier network in the marker.

These dealer always focus to sell PEL items, gives them an excellent profit percentage. PEL management likewise gives great incentive to its dealer if we do a comparison of it to its rivals. Thats why they happen to be consequently conscious about the PEL products assortment and always convince the customer to get PEL products.

Good Sales Services:

PEL provides the good after sales service to its client which improve the customer satisfaction. The main strength of service division is that it handles customer complaint with in a day in any area of the Pakistan that provide edge in increasing the customer satisfaction.

Quality Products:

PEL has also a solid position in providing outstanding quality goods to its client. So its give a advantage over its competitors. Because of best quality guarantee of its item after sale in a lot more than its competitors

Market Leader inWRAC( Screen Room Air Conditioner)

Its also strength of PEL that it is becoming market leader in windows room air conditioner. Customer always gives concern to PEL in windows ac consequently in reintroducing its split ac it might get good thing about its branding.

Strong management Team:

Having a strong management team is also PEL’s another strength.

Its employees are qualified, competent efficient and knowledge. They definitely corporate with the hierarchy level administration in achieving of goal which are assigned to them.

Distribution of Authority:

Top level administration of PEL presenting authority to its subordinates to for achieving the marketplace objectives in a given time period. So each manager has authority to have quick decision to aceive the goals in this way they manage their task in good time and react quickly.

Research and Development Section.

PEL includes a good R&D department which is constantly trying to build up new features in the products. Which introduce fresh technology in its products minimize the cost and time. R&D department spends huge sum of money for the production of services.

Free Customer Services:

PEL provides free customer service for just one year to its buyer after buying any product. Due to this customer become brand faithful.

Weakness of PEL:

Like others companies PEL possesses few weaknesses. If PEL overcomes these weaknesses then I could become a market leader and get a huge market show in home appliances.

Financial Problems

sometimes PEL faces the fiscal problems due to its stocks because its stocks are too much piled up in the stores place that become the reason behind shortage of cash flow. Because when stocks in stores and production in process for constantly 24 hours per day then company faces such problems

Lack of Advertisement:

Its a second major weakness of PEL that it’s not a large advertiser. But from the last handful of year it spend a significant amount in the sector of advertisement but not up to the mark. Because now a also a little companies spend a huge amount in the advertisement sector. Then then can achieve there objectives. Consequently PEL has to invest in this discipline as its competitor undertaking and getting benefit.

System variations:

its also primary weakness of the PEL that there is rocket transformation in the polices of reselling the products

That creates challenges for the sales division to sell the merchandise to the sellers and agencies for the reason that demand of the very best level management. They might need urgent sum of money for different operations. Because of this sales department must sale their item on income which decrease the price of the product which create the condition for the management.

Lack of Product Collection:

Although PEL has released more products for its customer. But its not enough if we have start looking on its competitor like Haire, LG, Dawlance etc. since when customer become brands devoted then he prefer to have all kitchen appliances of same makes so PEL has to introduced new products as well for the sales of its current products.

Working Under Capacity:

Because PEL faces personal problem that is why could not utilize its all information on its full potential. Due to this the price of each unit increase and that’s why profit margin also fall and business suffer. Sometimes, the company cant utilize its resources according the requirement of the production section. Later on which become the situation for the full usage of resources.

Opportunities for PEL:

There are more prospects for the PEL to boost up its organization Following are a few of them

Exploration of Marketplace in Pakistan:

PEL has good opportunity to enhance its business all around the Pakistan. Although PEL has got launched its products in lots of metropolitan areas of the Pakistan. But there are lots of town on towns are however to be explored. Because due to this company can get benefits and increase its marketplace share because other competitor also has not captured these places and towns and PEL can launch its Split AC in this spot and could get advantage due to exploration of market in Pakistan.

Increase in Product Collection:

PEL can boost its Product range which over all increase the PEL profit. Because its requirement to develop new home appliance products for the PEL clients. Those consumer who are brand faithful they want all selection of product to fulfil their necessity PEL has to increae its product array due to this customer will come to be retained by the PEL and customer will not shift to other brands. So for the retention of the customer PEL should give attention to increasing its products spectrum.

Export Opportunity :

PEL has also possibility to export its Split air conditioning equipment to other countries like UAE Saudi Arabia and additional Arabic and African countries. Because its offers cheaper labour charge in Pakistan and may introduce its product in foreign market with good quality and at cheap.

Increase in Production Range:

PEL may also greatly increase its production brand at the advanced. For this reason PEL can raise the efficiency if its personnel and will also reduce the overall cost of the product. Because of this PEL can provide its product at lower price and ca:n increase its marketplace share.

Threats for PEL

these are the main threats for the PEL:

Strong Competition

China’s Brand

Price War

Slow Growth level in Pakistan

Political unstable

Porters Five Forces

As market research shows that PEL has lost its competitive advantage when its involves another manufacturer. Why this happen porters five forces.

The threat of new access by potential competitor

Rivalry in established firms

The bargaining ability of the buyer

The risk of new substitute

Direct Competitor:

The immediate competitor of PEL are dawlance waves LG Haier Orient mitsubishi etc.

as the mitsubishi is usually market leader in the market of Pakistan

Window AC:

PEL is a market leader in Pakistan talk about about 60% of its localized manufacturing sector. And it provides overall 35% market shares for this product.

LG has 32% marketplace talk about and stand second.

And all the rest of suppliers have 23% market talk about.

Indirect competitors:

The indirect opponents for PEL happen to be Mitsubishi Haier sabro Orient Samsung Nobel and also some others Chines makes. But PEL has got some danger from the Mitsubishi Orient Haier because they are making very high quality Split ac in Pakistan

Risk of New Entry :

There is a higher risk of new entrance in this industry, because this is a huge industry and includes a lot of potential for the foreign companies. But in order to produce a good brand loyalty and also to be in business PEL has to do more investment .

Bargaining Vitality of the Buyers:

Company’s customers are those persons who buy and ingest its products. If you have a lot range of brands available in the market then it’ll effect the bargaining electricity of the buyers. As there are a great number of brands available in the market so the bargaining ability of the buyers is high.

The Bargaining Power of the Suppliers:

Suppliers bargaining powers is also a risk. But within Pakistan market is so vast and there’s a lot of suppliers in the market for the production brand and provides JIT and cheaper in price and good in top quality. So there is no a such high risk of suppliers bargaining powers.

Substitute Products:

As Split AC is certainly in declined stage of PEL and there is usually others makes doing good organization so availability of substitute is threat but with the boosting the product quality and at good deal PEL could overcome there issues

Objective Setting

Following are the key goal of the PEL because of its Split AC product.

To raise the Brand Image of PEL in Split AC product.

To provide the top quality of merchandise and gain market show at least one half of its main competitor by the end of next season.

Minimize the price tag on Split AC to provide it at less expensive as its likely to get rivals edge.

1.4 Strategy Production:

After studying the market I suggest to utilize the competitive technique to grow the business of PEL in Pakistan.

Competitive Strategy

Cost Leadership:

as the goals of the PEL is certainly to reduce the cost and raise the market share. Thus PEL should adopt this plan to reduce its cost as the market is too vast and the behaviour of the clients to look for the expense of the product and there are a great number of competitors available in the market. So to become pioneer in the Pakistan PEL has to minimize the cost by this PEL will increase its sale and can increase the market share by the duration of time because this strategy is linked to the large numbers of scale of business and the market for the split ac is normally too large and PEL includes a potential to do business on this scale because its already market leader in the Window ac.

Ansoff ‘s Matrix:

The Ansoff matrix can be another tool to business strategy to growth its business.

Market Penetration:

PEL should give attention to marketplace penetration because Split AC may be the new styles in the Pakistan its cheaper in consumption of electricity and includes a good demand. An additional reason is that there surely is no need to move around in the other industry because Pakistani market includes a good probable because normally hot time remains a lot more than 6 month and there’s a very good demand for Split AC.

To succeed in this market PEL has to focus on minimizing the cost by this it’ll attract the customer and it also has to improve its quality because there are a great number of other brands offering a high quality split ac available in the market to get edge on them in addition, it has to give attention to the quality.

1.5 Marketing Mix


The Item of PEL is certainly Split Air Conditioner. PEL has to appear on its split ac while comparing it with different competitor because its need a high-quality in its compressor and Inner of its should be trendy and as its provided in market with different colors. And the filtration of AC ought to be long life and of top quality. The handy remote control of PEL split AC ought to be in long selection and there should be screen on its Inner of the Split AC.


price is a significant element in the marketing blend it impacts on the client straightly.

And as far as concerned with the purchase price PEL management sets the price after undertaking the cost of its competitor. As the significant inhabitants of Pakistan upfilling their standard and striving to meet their requirement. So PEL management deeply focus on portion of society during setting the purchase price.


promotion is an essential part of advertising mix. Its includes advertising and marketing personal selling and sales promotion aswell.

Push Strategy:

PELL should adopt this streatgy to improve their sales volume by giving some incentive programs to its dealers.

Methods of Promotion:

Following are the strategies which PEL will adopt in promotion of its Split AC.


Personal Sales

Sales Promotion

Public Relation


there are large amount of channels which could be used.

By Print Media:

PEL should use the Print mass media as others competitor are employing this channel because now a days its a very goof channel for advertisement. By publishing advertisings in local selling magzines.

By Electronic Media:

PEL should use electronic digital media as well for the promotion of its split AC. Its should bring in notice different ethical issues and current trends in the home appliance products.

Sales Promotion:

PEL should also give attention to the sales advertising by sponsor locating like its brands ambassador is normally Hadiqa Kiyani who is a famous pop singer, it will also used distinct out door activities



Road Shows

Promotions Scheme

Public Relations:

PEL should also consider the general public relation with the people to get soft corner within their hearts, because pr will improve the good brand image of the business.


this is also a basic element of marketing combine. PEL should use the placement technique in allocating the right place where the demand for the merchandise will be high. It worried about the activities which are connected to the approach of product from seller to buyer, merchandise reach to customer by various stations of distribution. PEL should eliminate and try to minimize the complexity of including different stations and use such placement by which customer can easily usage of the product.

1.6Action & Implementation :

for the advertisement of PEL Split AC PEL will take different action to put into action its all planed stations.

PEL put in 50million Rupees on the advertising of its merchandise annual. Out which almost 30 million allocated to Air Conditioner. PEL should spent one half of which on the advertisement of the Macintosh series.

80% of its total promotion finances PKR 12016000 should be correct for the advertisement.

Budgeting for the Electronic Media

Channels for Advertisement



1285000(10 days Package)

Geo News TV

1474000(18 days Package)

Sun multimedia Cable Network.

1085000(6months package)

NBC Cable

1075000(6month package)

World call network

1080000(6month package )



Allocation Responsibility to Staff.

PEL has to utilize the companies own staff and also has to take providers of the marketing companies

like for the advertisement of PEL split AC it use some electronic media for these channels needs professional ads developer.

As considerably as concerned some printing media channels PEL must use its own staff to develop the commercials in the print media and pay to them for the advertising.

Scheduling and Planed Marketing Activities

Marketing activities




Advertisement by electronic media

March to September

GEO and others channels


1.7Monitoring and control


For each objectives there must be a monitoring process because its very necessary part of the management. There must be a monitoring process for the PEL firm to timely screen all ongoing pursuits like as its an objective of the PEL to provide the low cost Split AC for this PEL must establish such a system that it should monitor the expense of the product.

An other aim of the PEL is definitely to provide a good quality Split AC for this their ought to be a TQM process which includes to implement and screen as well.


Control is up coming to the monitoring when PEL control get any loops in the ongoing method then it must control that concern. Sometime hurdles comes in getting objectives.

There ought to be checks in the every single department rather than at the end of the process it safe times and in addition helps in minimizing the price tag on product and also helps in top quality control.

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