INTERNSHIP REPORT

SM (Siam Mubeen) Food Maker Company Multan

Advisor:
Sir Najum Janjua
Assistant Professor (MS)

Submitted by:
M. Sajjad
CIIT/SP15-BBA-008/VHR

Department of management science

COMSATS University Vehari Campus
 Letter of Undertaking

This internship report was submitted by Muhammad Sajjad S/O Muhammad Hussain for the
completion of the requirement for internship of Comsats University Islamabad Vehari Campus.

From June 25, 2018 to Aug. 10, 2018

Internship in

MARKETING & SALES DEPARTMENT OF SM DOOD MKERS

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Internship certificate

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 Acknowledgement

I am thankful to Mr. Abdullah (HR Executive) Sir Najum who guide me and whose proposals
and participation empowers me to create my endeavors and learning and who have persistently
guided me in finishing this hard undertaking. Their security help helped me understand and
accomplish what I at first went for.
Very special thanks to all my dear teachers because they enabled me to do some Showing the
ability create interesting new thing in practical life.

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 Preface

Internship report covers my comprehensive findings of SM FOOD. The purpose to do

internship report is make to realize what is actually happening in the company in reality and to
observe the practicality of the courses that we are studying.
The periods of my internship was 6 weeks. During internship I spend a lot of my time in
marketing department, Mr. Farukh and Mr. Abdul Wahid are the Brands Managers they
provided me opportunity to learn more.
This report covers the whole information of Food sector and general information about SM
Food Ltd.

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 Executive Summery

Today, SM food considered be at standard with multinationals working locally in terms its

quality items administration skills. Organization is free from the energy crisis because they

have set up own particular power units. The organization is possess the position of

confectionery and bakery plants with the extraordinary production capacity.

SM is running different business with popular brand like Gibbs and Gibbs Gold it has opened

its outlets in significant urban areas in Pakistan. Distinctive divisions are functioning admirably

to accomplish the key points of the organization. They are embracing the most recent

Management Information System (MIS) to get to information that outcomes in creating

auspicious results for various divisions. The PESTEL investigation demonstrates that

organization has lived far from any sort of difficulties that may have influence the

organization's goodwill by satisfying the legitimate, natural necessities and utilizing worldwide

money related guidelines as a part of the creation of budgetary explanations. The SWOT

investigation shows that qualities are more strength in number when contrasted with

shortcomings and dangers that demonstrates the organization wells know its position and stay

up with the latest. Still there are a few does not have that organization ought to overcome to

get extreme results.

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Table of Contents

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 CHAPTER: 01

1. Overview the Organization

1.1 Introduction
S.M food limited established in the year 2000, is primarily engaged in manufacturing of food
products I.e. .biscuits ,wafers, chocolates, toffees, candies, Choco bunties, Nikos, and bubble
gums. Since its inception S.M Foods limited has established itself as one of the best biscuits
and confectionery products manufacturing company in Pakistan. S.M foods Limited’s brands
are available in every nook and corner of Pakistan and as well as. SM is running different
business with popular brand like Gibbs and Gibbs Gold it has opened its outlets in significant
urban areas in Pakistan. Distinctive divisions are functioning admirably to accomplish the key
points of the organization. They are embracing the most recent Management Information
System (MIS) to get to information that outcomes in creating auspicious results for various
divisions. The PESTEL investigation demonstrates that organization has lived far from any
sort of difficulties that may have influence the organization's goodwill by satisfying the
legitimate, natural necessities and utilizing worldwide money related guidelines as a part of
the creation of budgetary explanations. The SWOT investigation shows that qualities are more
strength in number when contrasted with shortcomings and dangers that demonstrates the
organization wells know its position and stay up with the latest. Still there are a few does not
have that organization ought to overcome to get extreme results.

1.2 Company Mission

To be established manufacturer of bakery and confectionery, offering safe with premium
quality in attractive packaging and at affordable price, in line with customer requirements .Be
a responsible corporate citizen and conduct business with highest degree of integrity.

1.3 Our Vision

To be a market leader in Confectionary and Bakery items in Pakistan with a focus on quality
and positive contribution to national economic growth and development.

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1.4 Company Structure

Chain of Command

A proper chain of command exist in this organization. Starting from top management to middle
level managers and ultimately ending up at lower staff. A clear reporting criteria is developed
at all levels.

Departmentalization

All types of departments are existing in the organization and all departments support other
department to fulfil the goal and objective of firm. The departments having different size of
teams according to the nature and type of department.

1.5 Values

Enterprise
Empowerment
Accountability
Trust
Teamwork

1.6 Events

SM had organize many events. Some of them are here:

BZU Multan College Of art (KUAAR)
26 to 29 March, 2012
College Of Art, BZU – Multan

Craft Festival

4 to 6 May, 2012
Chamber of Commerce – Multan

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Express Family Festival
Agriculture University – Faisalabad

ISM – World’s Biggest Confectionery Trade Fair

29 Jan to 1st Feb, 2012
Cologne – Germany

Live Musical Concert – Jal&Roxen

October 20, 2012

Railways Club – Multan Cant

1.7 Company Hierarchy

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 CHAPTER: 02

2. Service and Products

The manufacturing of food products I.e. .biscuits, wafers, chocolates, toffees, candies, Choco
bunties, Nikos, and bubble gums. Since its inception S.M Foods limited has established itself
as one of the best biscuits and confectionery products manufacturing company in Pakistan.

Today, SM food considered be at standard with multinationals working locally in terms its
quality items administration skills. Organization is free from the energy crisis because they
have set up own particular power units. The organization is possess the position of
confectionery and bakery plants with the extraordinary production capacity.
S.M foods Limited’s brands are available in every nook and corner of Pakistan and as well as.
SM is running different business with popular brand like Gibbs and Gibbs Gold it has opened
its outlets in significant urban areas in Pakistan. Distinctive divisions are functioning admirably
to accomplish the key points of the organization.

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 CHAPTER: 3

3. Learning as a Student Internship

3.1 Introduction of branch/head office

I do my internship at SM Food head that is situated, 1 km new Central Jail Road Multan. SM
Food is very vast because the production unit was also situated in the same area. Final products
storage is also present there.

I have selected SM Food Company for my internship because it is the most well-know and
prestigious company of Pakistan. It works in an organized way. The products of SM Food are
more reliable than others. There is no report about shortage of their any product in the market
and all are available at any time. SM Food constitutes each and every department in it. SM
Food organizes a formal internship program every year. For doing internship in SM Food
Company, there is a proper way to apply which included a test. One must have to pass a test in
order to be the part of SM Food as an internee. It is not only necessary to pass the test but the
candidate needs to stand on merit too. And the internees are selected on purely merit basis.
The system is so organized that all the priorities and works for the internees are per-decided.
All the contestants have allotted the specific work. And the best part of this organization is that
it trains the internees in the way that they become able to work in market after getting practical
skills from SM Food along with their theoretical knowledge.

3.2 Training Program

On first day, there was an orientation for me. Orientation was conducted by the HR team.
Orientation session last for 3 hours. It covers the following topics:

 Overview of the company

 History of the firm
 Main Divisions
 Products range
 Current position of company
 Standards of the company

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Rules and regulations were also told in the session which includes:

 Timing ( 9:00 to 6:00)

 Working days ( Saturday to Wednesday)
 Leaves ( 1 leave are allowed)
 Restricted area
 Permission required for short leave
The departments and supervisors were assigned by the HR managers and after that there was a
visiting session. I visited the marketing and sales departments and the guider let me to ask
questions about them. Then we met supervisor, she gave us introduction and there were total
12 internees in the marketing department and then all introduced themselves. The supervisor
told us that SM Food is one of the best firm in Pakistan, where internes learns in a friendly
environment and where the given task is project based.

On the start of 2nd day, there was a meeting session for 1 hour. The on-site Supervisor covered
the following topics:

 How to make effective questionnaire

 How to conduct a survey
 How to maintain paper data into electronic form (Excel)
The questionnaire consists of many questions about the refrigerators and oven. I had to convert
the data into excel form for the following reasons:

 Record keeping ( including sales-man data)

 The firm wants to send Eid gifts to the sales team
This day I also applied the theoretical theory in real world because I already know how to make
effective, clear and concise questionnaire for the survey. The conversion of paper work to excel
is also very easy as I learned this in 1st semester of BBA.

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3.3 My activities at SM Food Company
I spent almost 6 weeks in the SM during my stay I experienced many things at the plant. I got
many type of practical experiences. I observed that what we are studying in our BBA courses
these theories or concept are practically applied there. I realized organizations apply all these
things but there is a little bit difference due to the fluctuation in situation and requirement of
that company. For example, in finance department every organization has different activities
due to the different sort of requirements. In Marketing some items are lightly depend on
marketing activities but some companies are highly marketing oriented, their totally sales are
dependent on the efforts of marketing department so these organizations give more focuses to
the marketing exercise while a capital intensive industry give more weightage to the financial
activities. SM Food is one of the companies where marketing efforts are of most importance.
And I am lucky that I got the chance to do work in the marketing department for most of the
time of my stay at SM Food Company.
During the internship I realized following duties.

. Cohesiveness

. Ever ready for challenges

.Think big

. Learning from cradle to grave

. Always create opportunities

. Open communication with boss

. Appearance

3.4 Cohesiveness
Team person can accomplish more than a person. Great coordination and collaboration with
companions and staff individuals can drive a man to perform better in troublesome
circumstances. During my temporary job I saw that the level of cohesiveness among the SM
representatives is high, that is the reason SM is accomplishing its objective effectively.
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.

3.4 Open correspondence with Boss

To evade any mistake in misunderstanding with your supervisor, discuss openly. During my
internship I realized that; “Person don’t leave company, they leave managers” Be inviting with
your supervisor and convey openly to evade company changing.

3.5 Appearance

“Serve yourself as product”

Magnetic appearance helpful to impress others. A professional get up is properly to influence
others.

3.6 In Accounts and Finance Department

I spent almost three days in the finance department. It is very difficult for a person to fully
understand the activities are performed in finance department in a short period. But during my
stay I trying my best to understand the procedure work in finance department.
Mr. Asad working accounts manager in SM Food. My session with him was of three days.
Accounts concerned when transactions arises small or large. All buying and sale exercises of
all of the goods are put in accounts and Financial Statements are made on monthly basis but
decisions are made on annual reports. He tell me about many types of sales and purchase
vouchers and how the accounts have been maintained in the industry.
He further explained:

 Record of all transactions

 Generation of demand book offer

 They are using the average method of accountancy

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3.7 In Marketing Department
I spent most of the time in the Marketing Department at SM. Mr. Farrukh and Mr. Abdul
Waheed help me a lot how the marketing department work in the organization. They tell me
that we promote our product through;

 ATL (Above the line)

 BTL (Below the line)

ATL:
They promote their product on the mass media by making advertisement.

BTL:
They promote their product through bill boards.

3.8 Market surveys

I have also done market surveys with marketing people. The work of marketing people, who
are directly connected with the market is to have a check and balance on the performance of
sales boys. They also check out that is there any complaint the shopkeepers are having about
the products, packages or sales boys etc.
In my marketing survey I have filled a Performa in which I mentioned the product availability,
product display, which area or shop is not having our product etc. It was a very good experience
of visiting markets and interacting with retailers.

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 CHAPTER: 4

4.1 Main Strategies of S.M

Every company has some strategies are adopted. Strategies adopted by SM Food Company
that are fruitful:

 Consumer communication
 Product availability and development

Product availability
Activities are performed such as area storming, searching new places or areas are being done.
Making sure that distribution equally available everywhere.

4.2 Corporate Social Responsibility

Corporate Social Responsibility is a management concept in which companies do work for the
social and environmental benefit to interact with stake holder.

The targets and cover the following areas:

 Accommodation and providing relief to flood victim.

 Dispensary with Doctor for the employee and their families (Health and Safety).

 Regular donation on Monthly basis to orphans & widows in SOS village.

 Regular Donations to different NGO'S.

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4.3 Segmentation Strategy

4.3.1 Demographic segmentation

SM Food products not restricted to any specific age, gender. Although their major focus is on
children but they are targeting people from all the age groups. Brand is mean that is accessible
to all users in higher upper or middle class. Brand can take small amount of individual’s income
but lower class don’t want to buy the brand due to they are price conscious. But now SM Food
is spreading awareness about their products and telling the customers that VFI products are
made for them in very cheaper price and VFI is not using any hazards things. This effort by
VFI is working for them and their sales are increasing day by day.

4.3.2 Psychographic segmentation

On foundation of psychographics, factors such as personality characteristics and lifestyles, the
marketers at SM Food have segmented the market more towards achievers who are Goal-
oriented and focused on their careers, and experience those who are seeking variety in the
confectionary and bakery. For example the ad for tea time is mentioning all the families that
how much tea time biscuit is having value for them. SM ads are for target believers, traditional
and conservative people who have concrete beliefs. The ads of SM Food the belief of healthy
life and plays on the emotional aspect more.

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4.3.3 Behavioral segmentation

SM provides the quality products to the customer and is based on the domestic demands and
needs, make sure that the items will be rewarded by the person who are quality sensitive.

4.4 Positioning the brand

Positioning contains designing the product and image that do positive impact on in the minds
of the target market. As can be seen, Darbari Nimko and Wafers have much higher profit
margins and market share in the confectionary and bakery industry.

 Wrapping of SM products in quite unique and sophisticated way that looks quite
different and eye catching for the customers.

 SM shows that their products are fully hygienic and safe for health. In my stay at SM
Food I have seen that SM is fulfilling this promise. Person who visits VFI can never
think about purchasing the products of another company. This is the reason their
revenues are jumping up.

4.5 Distribution strategy

The distribution system of SM Food has experienced many changes.

At initial they system was very simple. At initial time they have only four sale officers, who
have responsibility to manage area offices in Multan, Rawalpindi, Lahore and Faisalabad.

After some years the company categorical decided to make an effective distribution network.
The company had its distribution in all major cities.

4.6 Promotional Strategies

PUSH STRATEGY

This strategy basically work to promote the distribution in organization emphasizes to sell their
product. In some pervious years SM Food used this strategy to grow their sales by giving more
and more incentive to the distributors.

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METHODS OF PROMOTION

ADVERTISING:

The company is investing a lot of resources on different media vehicle which are:

 TV
 Key chain
 Billboards
 Stickers etc.

Sales Promotion

 Exhibitions
 Road Shows
 Promotional Schemes

4.7 Pricing Strategy

Prices are set according to competitor level. SM Food considers market should not contract due
to pricing.

Pricing is tool to control sales. Prices sets according to the market conditions.

4.8 Competitive Priorities

Cost
As SM FOOD is creating items so they need to keep up a fixed cost. They need to bring down
per unit cost and also the total cost of generation.

Quality

SM is producing standardized products and want to keep up the quality of products. They want
to convey high quality products as per to global model because is part of their vision that they
will never compromise on quality.
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Time

SM meets its conveyance time promise i.e. Company gives careful consideration on
conveyance - on-time to fulfill customer and retailer's requirement on the time, which they
want.

Flexibility

SM does not concentrate on extraordinary request of customer and results of SM Food

standardized, Organization can increase or decrease the rate of production rapidly to control
huge variances in demand. Other Competencies are;

 Strong distribution network

 Wide geographical coverage

 Experienced engineers and sales staff

Quick customer response and feedback

4.9 Competitive Edge

 Regular Donations of equipment to a local school system.

Competitors

In confectionary and bakery, SM Food is confronting extremely savage rivalry. Main

competitors of VFI are as follows:

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4.10 Strategies to achieve the Target
The most important role of the sales department is to achieve the annual target of the company.
The target is given to GM Sales then the Target is divided into the zonal managers on the basis
of the areas. Likewise the target is divided further into the lower levels from Zonal managers
to Regional manager then area sales manager and then the target is given to the sales
executives. The number of strategies are made on every level to achieve the sales on monthly
basis and then to achieve the yearly target. The sales team plays an important role in building
good relations with the retailers.

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 CHAPTER: 0 5

5.1 Competitor

5.2 List of main competitors

Power Division Competitors

 Hilal
 Candy land
 Mitchell’s(onlyConfectionery&Chocolates)
 B.P Sweets
 Cadbury’s
 Kidco
 Mayfair

5.3 Customer oriented Marketing Mix

1. Product

The product of SM Food includes consumer food products like Biscuits, Jelly, bubble gum
etc.

2. Price

SM Food is fair priced to its competitors, offering finest items at a competitive price.

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 3. Place

They place their items in local as well as all the Pakistan.

4. Promotion

Promotion is the main part of this company. Firstly TV advertising with radio, magazine.

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 CHAPTER: 6

6.1 Number of employees in the Marketing department

Total numbers of workers at marketing department of SM Food are 15. But marketing
department having support of huge team of sales department. Both marketing department and
sales department work together like a team and focuses on the organizational goals and
objectives. Both departments cannot achieve success individually that’s why SM Food creates
an environment in which both works together as a team.

Production
Technology is part of Production at SM Foods. Up to date plant installed near Bahawalpur
Bypass generating products at fast track, one of the largest plant in the country. Professionally
capable HR maximum effectively works to secure hygiene standards and food.
To give time in production plant with professional person was an excellent experience.

Quality Assurance
Quality Assurance precisely supervene in SM Foods. Competent food professionals at
department make sure that finest quality measurement are stuck to through all steps of
production and that the items reach to who use our product as per requirement. Our goal of
promise is the “OPPORTUNITY IS A RESPONSIBILITY”, we SM Food not securing finest
quality but taking care of quality through our strict standards. SM Food have duty to provide
finest quality to its loving customers, Loving parents, who is interested in our business.

Updated with latest stuff, laboratory checks quality and keeping clean for batch and stock
keeping unit. Our laboratory is prepared with highly technical and experienced staff and
updated with latest stuff like spectrophotometer, moisture analyzers, ash determination
equipment and purity confirmation equipment for sugar, glucose, milk powders and other
ingredients used in our products.

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Supply and Distribution
Department guarantee that efficient distribution of items to different shops and stores in all
Pakistan. Through transportation management to gaining route permits and approvals is done
by this department.

6.2 Hierarchy of sales Department

GM Sales

ZM

RSM

Area sales
Manager

Sales
Executives

6.3 Number of Employees in sales Department

Total number of representative in sale department is 70. Sales team is very larger than
marketing department because sales team have to cover the whole Pakistan and the sales team
have to work in the market instead of doing work in the offices.

6.4 Purchase Department

Responsibility of this department is buy sort of needed thing of multiple department but they
are not responsible for some technical needed thing. The work process of this department is, if
they wants to purchase any thing they prepare purchase lists on this lists the approval of

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departmental head and financial executive is necessary. Then lists sent to the purchase
department where they start a work of order and send one copy to supplier who is generating
the items and one copy sent to financial department and one will remain in the purchase
department to receive the amount of that work.

6.4 Internal Audit department

This department inside reviews all records in SM Food. The organization inside auditors
attempt to find out issues, fraud and corruption and investigate that workers and organization.

Human Resource
Human Resource office at SM Foods make the enlistment procedure to make sure that finest
human asset is accepted at SM Foods. Resumes of candidates are accurately recorded and
reported for present or future reference. Department, other than completing progression
arranging, keeps up and running HR approaches relating business, maintenance and numerous
different matters. Evaluating preparing necessities of employees and sufficient preparing is
done by the expert HR group at SM Foods.

Marketing:

Marketing department is accountable for types of activities containing the promotion,

advertising and tools used for producing demand.

Marketing department accountable for setting stalls and events so that more of the person get
to know importance of items ensure quality. These stall activities active for around 6 days.

6.5 Function of department

Administration
Productive administration of every regulatory issue of SM Food is the employment of the
administration department. Legal matters to general regular operations of the workplace, the

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administration office guarantees that all issues run easily. Some responsibilities of
administration department

 Make sure transport facility to administration staff.

 Providing transport for the journey of administration & non-administration staff.

 Providing of stationery and printing.

 Issuance and maintenance of stationery record.

 To provide entertainment to management during working hours.

6.6 Research and Development

Unique Product Development is critical factor for survival of organization. For organization is
important to spend on R & D because of changing in innovation and preferences of clients.
Development with consumer loyalty to deliver world best items is first priority. Thoughts of
new product improvement are altogether refined and exchanged to an unmatched item which
is defined with most ideal imported ingredient from everywhere throughout the world.. SM
Food R & D is contained of highly knowledgeable confectionery and bakery professionals
who are trying to formulate excellent items the Pakistan. SM Food mission of "showing the
ability to create new things work tried on a well thought out basis in order to increase our items
and consumer”. Food are our own rivals and are working continuously to enhance our items
with continuously research and development.

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 CHAPTER: 7

7.1 Organizational Culture

Culture of SM Food is differentiated from the other Confectionary organization following
important characteristics.

Innovation & risk taking

The organization emphasis on advancement and risk taking is higher than the rivalries and this
is advantageous for SM Food is getting popularity and increasing its market share day by day.

Attention to detail
The organization's employees show exactness, attention to detail. Because to these qualities,
the overall performance of organization is acknowledged &well managed.

Outcome orientation
The management of SM concentrate on results rather than on the ways of doing things and
processes used to gain with effort these results. Due to this responsibility of behavior trend of
results remains upward.

Aggressiveness
Workers of SM Food are always open to gain the challenges and show positive attitude to
complete tasks assigned and competitive rather than easy going.

Stability
Some places of working relationship between the workers are keep in way things are now in
contrast to growth like causing people to interact each other so they are friendlier.

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7.2 How the New Employees SM Learn Culture

SM Food Culture transmitted to new Workers in a forms, some important being;

 Stories

 Rituals

 Material symbols

 Languages

Stories

The most imperative methods for transmitting way of life to newly workers in SM Food stories.
Old representative of the organization convey stories to the general population who worked
with company. They are highly familiar with past experience and results. They either scare
them or give them courage to take after strategies made by the organization. Old managers of
office tell new persons how they ought to need to play out their obligations and what are the
standards of the organization which can't be disregarded.

Rituals

Another critical component of transmitting the way of life to new workers is ceremonies. A
few exercises considered to understand the comprehended exercises like break for Names-E-
Juma.As the individuals from SM Food, are regular prayer sayings, a break for prayer is
understood and no one is forced to do office work during break.

Language

The workers of SM Food have a formal method for carrying to each other. They speak formal
like "Sir" even to their coworkers. They show respect each other the distance to share the
respect

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 CHAPTER: 8

SWOT Analysis

1. Strengths

 Growing trade and transaction.

 Major shareholder in the food industry of Pakistan.

 Efficient Distribution networks throughout the country.

 Generating quality items.

 Environment friendly.

 Socially Responsible Company.

 Innovative and steady growing product line.

 Sales force is the major resource strength in terms of physical resources of the Company.

 Innovating marketing strategies build by the company.

 After some time periodic research conduct to get out market trends.

 Sophisticated plant.

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 Qualified work force.

 Focuses on research and development.

 ISO Certified Company.

 Decentralized authority.

2. Weaknesses

 Small and local company in comparison with its rivals.

 For supply of raw material depend on 3rd party.

 Sales margins become low because of value added products.

 SM cannot introduce many of its expensive items because to the lower income groups.

 Because of certain change in economic and political conditions selective investment were
made.

 Department of sales have more authority than marketing which creates hurdle to implement
marketing strategies.

 Low promotional activities.

 Weak distribution Network.

3. Opportunities

 Credit policy can established to grow sales.

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SM Food can start the production of beverages as they mention to their vision.

 SM Food can go for joint venture with other well established organization to grow the
market share.

4. Threats

 Effect of Seasonal ties upon sales.

 Price fluctuations because of rupee devaluation as raw material are imported.

 Uncertainty of economic or government policies show a great threat.

 Price sensitive person.

 Suppliers can providing low quality material.

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 09 CONCLUSION

This internship help me a lot to gain knowledge about how the actually industries run. I earned
bundle of knowledge and most importantly gain practical knowledge. It was my first
experience in organization, which was very tough, but it will be providing beneficiary for me
in my coming future.

. If the management of SM Food National in show the some extra outcomes in the future then
SM Food should have to take some decisions timely, because in this era or coming era those
companies are survive who have a sense of change and successfully attempt the change.

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 10 RECOMMENDATION

 If organization want to increase their sale they give more profit margin to shop keeper.

 Workers of company become more get involved in policy making to become more
effectively.

 Reward or compensation given to employees to keep them loyal.

 Company should create environment which is supported for the work, so the employees do
their work actively.

 Company should conduct survey from time to time according to which changes can be
introduced in the organization to stay updated in the market.

 Training should be given to employees according to the changing and stay up dated.

 SM Food should also allocate a healthy budget for the advertising of its products

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