GROUP 2
MGMT-142
FINAL PROJECT
GENERAL CONTEXT
MEMBERS:
SHAZAIB MUKHTIAR (27110265)
HAFSA KAMRAN (27110056)
AMEER HAMZAH KHAN (27110285)
ALI HAMMAD (27110235)
MOMINA ASAD (27110380)
MOHAMMAD UMAR AHSAN (27110251)
MUHAMMAD RAAHIM BILAL (27110263)
Pakistan Tobacco Company
1: Size of the Organization (Revenues, Number of Employees etc.)
Products: 300
International markets: 180
Number of employees: 1200 plus employees
Market Shares: Over 49.7% market share (PTC annual report 2022)
Market Capital: 236, 331, 757.60000 PKR (Pakistan stock exchange).
Market Growth:
• In 2022, its market share grew by 0.4 % (PTC et al. 2022). By Sept 30, 2023, it has the
current year profit of 9895134000 PKR.
• In 2022, it contributed 154 billion PKR to the treasury through excise and various
regulatory duties (PTC annual report 2022).
• Cigarettes being the primary selling one for the company with a market volume of 1.7
billion USD in 2023 (Statista).
Products:
• Dunhill
• Benson and Hedge
• John Player Gold Leaf
• Capstan by Pall Mall
• Gold Flake
• Embassy
Market Trend:
They are consistently innovating their product portfolio according to the shifting trends of the
modern age. They are also the first ones to introduce VELO (nicotine pouches) in the country
and are working on establishing their vaping brand as well.
2: Briefly analyze the competitive environment of the organization (Porters Model)
• Competitors:
The tobacco market in Pakistan is characterized by intense competition, with Pakistan
Tobacco Company (PTC) holding the leading position and the largest market share.
PTC's primary competitor is Philips Morris Pakistan, which occupies the second most
substantial market share and serves as the main challenger to PTC. (Hcommons report)
[1]
• Suppliers:
The BAT Group works with a vast network of Suppliers worldwide, from smallholder
farmers, international leaf suppliers, and product materials Suppliers, including their
growing supply chain for consumer electronics and e-liquids for their New Category
products (PTC supplier code of conduct 2022). Due to recent import restrictions on PTC,
it has shifted its focus on localizing its raw materials and approaching local vendors and
suppliers.
• Buyers:
The primary target consumers for the company are adult nicotine users. With Over 31
million current tobacco-consuming adults, or 19.7%, it has a massive base of buyers
spread all over the country. Moreover, as per the Pakistani tobacco market, people are
price sensitive and intent to switch towards cheaper mediums available. Therefore, PTC
has to be very cautious of their pricing decisions. [2]
• Substitutes:
The company faces a consistent threat in the market due to the availability of cheaper
illicit cigarettes such as Marlboro crafted and Milano. However, with market cheap illicit
cigarettes and new products like vaping devices have been of interest to companies'
marketing teams. PTC has also introduced its vaping devices to capitalize on this new
good.
• New Entrants:
With the rise of vaping devices, IVG Bar and Nicocino, new potential competitors have
made their way into the market launching their cheaper alternatives. However, in order to
follow the societal trend, PTC is also working on launching its vaping devices such as
VUSE.
3: Analyze the organizational structure (Hierarchy, Centralized versus Decentralized
Decision Making, and Delegation of Authority)
Framework:
• PTC operates under a functional organizational framework.
Hierarchy and Delegation of Authority:
• At the top of the hierarchy is the board of directors who elect a CEO. The CEO is
responsible for developing, leading and executing the company's short and long term
strategies, keeping shareholders' interest in mind.
• The organization is structured with departmental heads overseeing key functions like
finance, HR, production, marketing, corporate and regulatory affairs etc.
Decision Making and Decentralized System:
• The decision-making power also lies with the departmental heads, indicating a
decentralized structure. The extent to which a departmental head can take a decision
depends on the nature of said decision. Any decision that may affect the whole organization
is taken by the top-level management, however decisions like when the employees in the
department are to report to the office depend on the functional heads.
4: Organization’s mission and vision, analyze these aims in light of its SWOT analysis.
Mission:
• To anticipate and satisfy the ever-evolving consumers: provide pleasure, reduce risk,
increase choice and stimulate the senses of adult consumers worldwide.
Vision:
• To reduce the health impact through offering a greater choice of enjoyable and less risky
products for their customers.
SWOT Analysis:
Strength:
• Offering a variety of tobacco products can cater to different market segments and therefore
help in satisfying the needs of consumers from different areas.
• In line with the Group's aim for tobacco harm reduction, PTC continued to build on its
venture into new categories of tobacco-free nicotine products.
Weakness:
• Weakness PTC has is the huge amount of waste produced. This contradicts their vision to
reduce the health impact.
Opportunity:
• Emerging trend of smoking and increase in number of young smokers helps PTC gather
readily available information to anticipate the consumer needs
Threat:
• Threat PTC has is the import duties and heavy taxes, this increases the import costs hence
reducing the profit margins. PTC addressed the problem by introducing Real Check in
2021, allowing the distributors, retailers, consumers and officials to verify the authenticity
of PTC’s cigarette brands and ensure proper taxes are being paid. [3] [4]
5: Organization’s stance on CSR (briefly mention their CSR activities, if applicable)
• PTC provided four generators to support irrigation across more than 1,000 hectares in
Buner, KPK, in order to mitigate the impact of frequent power outages on the availability
of water.
• These initiatives improved access to water, which raised agricultural output. Furthermore,
PTC encourages drip irrigation across 215 hectares, saving about 115 million rupees
in water waste.
• PTC maintains 6 nurseries and has assisted in the planting and distribution of over
120 million plant saplings since the program initiated.
• PTC and the Provincial Government of KPK also collaborated to start a project in 2015
that supplies solar kits to off-grid villages, providing essential electricity to deprived
areas. Currently, PTC is working to grow this important project even more right now.
• In 9 districts, PTC has established and is maintaining 27 water filtration plants, aiming
to reduce waterborne diseases and to ensure that clean and safe drinking water is
available for underprivileged communities.
• In partnership with the National Rural Support Programme, PTC has provided training
to more than 2,000 farmer families.
• PTC has won four prestigious awards at 11th Annual Int’l CSR Summit and
Awards ceremony held in Karachi in the categories of Business Practices, Green
Environmental Stewardship, Sustainability Innovation, and D&I Leader.(PTC CSR
activities highlighted in “OCCI report on CSR activities 2021-2022”)[5][6][7]
6: A brief introduction of the Manager/s you have interviewed (Position/Rank, JD etc.)
Name: Mr. Rizwan Zafar
Position: Head of Marketing and Finance
Company: Pakistan Tobacco Company Limited (PTC), a division of British American Tobacco
(BAT), for nearly two years.
General Information:
• He earned his accounting and finance bachelor's degree from LUMS in 2006 and
completed his MBA from LUMS in 2010.
• He has about 13 years of managerial experience at PTC in a variety of roles. Presently, he
resides in Islamabad.
LinkedIn link: https://www.linkedin.com/in/rizwan-zafar-9596b530/
KAWISH
1: Size of the Organization (Revenues, Number of Employees etc.)
Location:
• Initially based in Bahawalpur, its headquarters are now in Lahore.
Start up:
• Starting in 2003 with only 6 staff members and an annual budget of Rupees 300000. The
initial program of Kawish was non formal schools based in masjids where students would
receive free books, bags, and uniforms.
Market Size:
• 208 non formal schools with 6000 students
• 24 primary health centers
• 10 vocation centers with special skill courses for women
Employees: 350
Budget: 170 million PKR
Operational Zones:
• 27 separate run zones (Lahore, Bahawalpur, and Karachi)
• International relief projects in Turkey and Palestine
[9]
2: Briefly analyze the competitive environment of the organization (Porter's Model)
Competition:
The barrier of entry for an NGO is considerably lower than a business and hence
Kawish faces substitutes in the form of other organizations addressing similar social
issues.
However, rather than rivalry, Kawish aims to collaborate with other NGOs. In the past, it
has collaborated with NGOs such as Akhuwat and Maria-Helena Foundation [9].
• Suppliers:
Kawish receives funds from organizations such as the POB Trust and Shafi group.
Kawish does not depend on advertisements or network of industrialists to attract
donors.
• Buyers:
Several donors ensure no one holds too much power over Kawish. The beneficiaries of
Kawish's program serve as the "buyers". Kawish engages in diverse social programs
with each program having a separate team ensuring the conflicting needs of
different programs are met.
3: Analyze the organizational structure (Hierarchy, Centralized versus Decentralized
Decision Making, and Delegation of Authority)
Hierarchy:
The top-level managers of Kawish are divided into 3 broad categories:
• Chief Patrons: Involved in major decision-making processes and provide leadership and
vision
• Central Advisory Council: Involve offering insights, recommendations, and guidance
on key issues and challenges.
• Executive Committee: Responsible for the day-to-day management and execution of
Kawish's operations.
In total, Kawish has 4 Chief Patrons, 4 members of Central Advisory Council, and 7
members of Executive Council. [8]
• Decision Making
• Centralized
• Instructions regarding different projects are decided by top-level managers and their
meetings are presided by Mr. Ammar Ahmad Tarin, the President of the Executive
Committee and Founder of Kawish.
• Kawish has assembled an extensive network of accountable and approved parties
who are fully empowered to decide on major financial and operational matters at the
local and regional levels, which facilitates responsible and effective management. Hence,
although key decisions are taken at the center, some decisions are delegated to lower-
level managers too.
4: Organization’s mission and vision, analyze these aims in light of its SWOT analysis
Mission:
• To develop a literate, healthy and self-esteemed society ready to take on challenges of
life and supporting each other in the hour of need.
Vision:
• To improve the quality in all areas with main focus on education and health. For this
Kawish is targeting to consolidate and strengthen our already existing system, identifying
weaknesses and flaws and removing them or at least minimizing them to the tolerance
level.
SWOT Analysis:
Strength:
• Committed team and leadership
• Effective communication
• Self-sustainability
Weakness:
• Limited resources
• Recruitment difficulties
Opportunities:
• Kawish is always on board to help people in natural disasters such as floods and
earthquakes.
Threats:
• A deteriorating law and order situation influenced by political rivalries.
• The uncertainty in the post-election and geo-political landscape makes planning for the
next 2-5 years challenging as well [8][9]
5: Organization’s stance on CSR (briefly mention their CSR activities, if applicable)
• As an NGO almost all of Kawish's activities center on social responsibility.
• The NGO considers the "Iqra primary school" as its basic unit, however in recent
years, it has greatly diversified its activities.
• Health projects such as Al Rahman Hospital provide free medical checkups to
underprivileged children.
• In collaboration with Akhuwat, Kawish has also established microfinance programs to
provide motorcycles, bicycles, and sewing machines to the unemployed on riba-free
installments [9].
• Furthermore, Kawish has also been involved in SRP of different corporations such as
Bentley and Pak Fans.
6: A brief introduction of the Manager/s you have interviewed (Position/Rank, JD etc.)
Name: Mr. Ammar Ahmad Tarin [9]
Position: CEO of Kawish NGO, whose remarkable leadership has spanned an impressive 21
years. [9]
General Information:
• Mr. Ammar, a seasoned electrical engineer, brings a unique blend of technical acumen
and compassionate leadership to his role. Concurrently managing his thriving business,
Star Automation, he has deftly guided Kawish from a modest annual budget of
$300,000 to a commendable $17 million, showcasing his strategic prowess.[9]
• Mr. Ammar's unwavering commitment to community development shines through as he
navigates the delicate balance between overseeing a successful business and prioritizing
the impactful work of the NGO. His dedication is not only evident in the financial growth
of Kawish but also in the countless lives touched by the organization's initiatives.
Mr.Amaar Tareen stands as a beacon of inspiration, embodying the ethos of responsible
leadership and sustainable impact in the pursuit of a better tomorrow. [9]
Cited work
[1] https://hcommons.org/deposits/item/hc:16931/).
[2] (https://www.nation.com.pk/27-May-2023/imf-paints-smoking-burden-on-economy)
[3] Enterprise of the future, Pakistan Tobacco Company, 2021
https://www.ptc.com.pk/group/sites/PAK_AMPC26.nsf/vwPagesWebLive/DOCU3C2Z/$FILE/
PTC_Annual_Report_2021.pdf?openelement
[4] Majid, Ayesha, et al. “Pakistan Tobacco Company: Strategic Analysis.” 2017, pg. 24
https://hcommons.org/deposits/objects/hc:16932/datastreams/CONTENT/content
Accessed 11th November 2023
[5]https://www.ptc.com.pk/group/sites/PAK_AMPC26.nsf/vwPagesWebLive/DO9T5K52
[6]https://www.brecorder.com/news/40231208/pakistan-tobacco-company-wins-four-csr-awards
[7]https://www.oicci.org/wp-content/uploads/2023/07/OICCI-CSR-REPORT-2022-FINAL-
FEB-16-2023.pdf
[8]Ahmed, Fahim. “KAWISH WELFARE TRUST ….a study of CHANGE through community
development.” 2012
[9] Kawish Welfare Trust - Index (kawish-welfare-trust.org)
