PROJE

CT
REPOR
T

DARAZ.
PK

MANAGEMNT
PRACTICES AT
DARAZ.PK

COURES TILE: PRINICIPLES OF

MANAGEMENT
COURSE INTRUCTOR: MAIRA AKHTAR
SUBMITTED BY:
ASIM HUSSAIN
MUMTAZ YASEEN
SADIQ AL ZAMAN
SHABBIR IQBAL
SHAHZAD AHMED

Contents
Acknowledgement.......................................................................................................
Preface.........................................................................................................................
Introduction.................................................................................................................
Global Management.....................................................................................................
Challenges In Global Management..............................................................................
Import/ Export..............................................................................................................
Challenges And Issues Related To Management..........................................................
Opinion Regarding Corporate Social Responsibility.....................................................
Participation In Corporate Social Activity.....................................................................
Vision.........................................................................................................................
Mission.......................................................................................................................
Short Term Goals........................................................................................................
Intermediate Goals....................................................................................................
Long Term Goals........................................................................................................
Short Term Plans........................................................................................................
Long Term Plans.........................................................................................................
Policies, Procedures, And Rules..................................................................................
Factors Considered For Planning................................................................................
Decision Making.........................................................................................................
Planning Tools............................................................................................................
Forecasting................................................................................................................
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Scheduling.................................................................................................................
Areas Of Planning......................................................................................................
Departmentalization..................................................................................................
Authority Delegation..................................................................................................
Structure Of Organization..........................................................................................
Coordination..............................................................................................................
Gangplank Concept...................................................................................................
Line Staff Relationship..............................................................................................
Task Management And Incentives..............................................................................
Work Environment Of Organization............................................................................
Error Identification And Monitoring Tools...................................................................
Customer Focus And Innovation................................................................................
Leadership Traits........................................................................................................
Leadership And Training Measures.............................................................................
Communication..........................................................................................................

ACKNOWLEDGEMENT

In the name of Allah, the beneficent and the merciful.

The assignment has been prodigiously undertaking. It would not

have been possible without the kind support and help of many
individuals and organizations. We would like to extend our sincere
thanks to all of them.
We are highly indebted to Madam Maira Akhtar for her guidance and
constant supervision as well as for providing necessary information
regarding the project & also for their support in completing the project.
We would like to express special gratitude and thanks to Marylou DMello
for giving such attention and time.
Regards,
Asim Hussain
Mumtaz Yaseen
Sadiq Al Zaman
Shabbir Iqbal
Shahzad Ahmad

PREFACE
This report is based on the MANAGEMENT TECHNIQUES that an
organization follows and implement . We have got the chance to
evaluate how those techniques, that we have learned in the course of
Principles of Management during our MBA program, are put into
practice in any organization to attain goals.
For this purpose we focused on one of the most new and under
developing market of our era i.e. E-commerce, its rapidly growing and
developing its roots in our life, In the recent year this market have seen
major growth .
So for understanding the management techniques that are under
practice at an E-commerce organization we have chosen and visited
Daraz.pk , one of the largest E-shopping destination in Pakistan.
As the infrastructure of E-commerce and as well as overall IT structure
of Pakistan is under development phase , Daraz and other associated
with this emerging e-market are facing various kind of new and out of
the box problems that they have tackle with such management skill
which has been designed and enhance to face the obstacles of the
advance problem of this market
In this report we tried to cover the major areas of problem that Daraz
have face and still facing by entering in this new marketing and
shopping world and how they have tackle them or plan to do, What are
there plans and missions and how they organization in an environment
where one have make a management system from sketch.
E commerce is the emerging world, and this will be future of all the
shopping to banking to every transaction that we make, to learn the
technique and methodology of this business is becoming very vital for
manager and to understand it need and to grow with it is the future.

INTRODUCTION

Daraz.pk is the leader of online retail in Pakistan, offering ecommerce

services for apparel, accessories, shoes, beauty products, electronics
and general merchandise.
Headquartered in Karachi, Daraz.pk has over 50,000 sq. of warehousing
space across Pakistan and has delivered to over 200 cities in the
country. The online shopping platform has a portfolio of over 1,800 local
and international brands and has established itself as a notable success

story. Daraz.pk is part of the Asia Pacific Internet Group (APACIG), a joint
venture of Rocket Internet and Ooredoo, leading internet platform in
Asia, supporting some of the top internet companies in the region.

To support the development of a vibrant online culture, Pakistans

leading ecommerce portal Daraz.pk, which hosts over 200,000 visitors
on its website daily, offers a portfolio of over 50,000 products, cash on
delivery, free nationwide shipping and a 7-day return policy.

To enhance user experience, Daraz.pk has launched an online shopping

app for Android and iOS phones. This is designed to provide a userfriendly and easily accessible platform for customers on-the-go and
simplify shopping by bringing online shopping to the fingertips of
Daraz.pks users.

MODERN MANAGEMENT
GLOBAL MANAGEMENT
Since Daraz.pk is part of
the Asia Pacific Internet
Group (APACIG), a joint
venture of Rocket Internet
and Ooredoo. Initiating and
managing business in
different countries is
challenge for the parent
company.

Currently daraz international, which is itself part of rocket internet, has

business in different countries namely;

Pakistan,
Bangladesh
Myanmar

CHALLENGES IN GLOBAL MANAGEMENT

In P akistan it is being operated for 3 years. The challenges to the new
venture in Pakistan and respective planning that was made against
these during these years of operation can be summarized as:

1ST YEAR:
After starting the business the first year was about getting people on
board. The challenge was to hunt the required talent. Since it is newly
launched business and e-commerce is a new dimension so finding
people with aptitude matching companies requirement was difficult in
Pakistan. Because the new business has obviously lots of challenges
and requires immense energy to sustain its existence in the market. In
this scenario, employee turnover was high.

2ND YEAR:
The company started with 100 employees. After a year of working and
evaluating, proper departmentalization was done and responsibility and
authority was defined.

3RD YEAR:

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In the 3rd year the company has started to kick off and to deepen its
roots.

IMPORT/ EXPORT
Daraz dont usually import outside PAKISTAN their point of view is to
business locally rather than globally they want to contribute in
PAKISTANI market and want it to prosper. They have also some
compliance issues so the percentage while importing products from
foreign countries is quite low.

CHALLENGES AND ISSUES RELATED TO

MANAGEMENT
According to the HR manager, the company is having issues every day.
It can be issue related to the website operation and error, tax and
compliance with the Government, issue related to suppliers or payment,
system errors, human resource related problems etc.

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The management is keen and dedicatedly putting efforts to cope these

issues.

OPINION REGARDING CORPORATE SOCIAL

RESPONSIBILITY
The management believes that corporate social activities are just the
source of building personal relations and prominence in market. They
believe that actual sense of good will and service to the society is not
observed rather this phenomenon is exploited as a tool to enhance
business.
However they also believe when truly observed or followed these
activities build maturity, a sense of responsibility and empathy.

PARTICIPATION IN CORPORATE SOCIAL ACTIVITY

The company does not find itself bound to observe such responsibility
but even then the company has participated in some of these activities
like they had stock that was about to get rotten, they distributed those
goods to EDHI CENTER and DARUL SUKOON.
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PLANNING
Every organization has its objectives set for certain period of time. It is
necessary to foresee and decide how to achieve those objectives, what
steps and measures to take and when to attempt those measures. The
pros and cons of every step must be discussed so as to choose best
possible way to achieve the objectives of organization. So planning is a
crucial part in the management of a business.
DARAZ consider planning as most important phenomena for the growth of
their organization .in daraz not only top level mangers involves in planning but
every employ participate it while planning and scheduling things within their
organization.

VISION
Our vision for the company is to become the biggest, most professional and most
customer-centric firm.

MISSION
Our mission is to be the only online shopping destination you will need.
We need to "wow" the customer at every touch point. We are going to
surprise every one of our consumers and suppliers by delivering an
incomparable experience.

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SHORT TERM GOALS

The companies short term goals are to keep the revenue generated,
maintain and enhance customer compliance, satisfaction and trust, to
fascinate more customers. To achieve these goals the company is
keeping pace with the market, keeping eye on competition and striving
for innovation and to lead.

INTERMEDIATE GOALS
The company is on its way to have number of brands on its platform.
For this, vendor management team and marketing team have its crucial
role in building relations with the vendors and to fascinate and convince
them for e-trade at companies platform.

LONG TERM GOALS

In the long run, the company believes to deepen its foot hole in the
market. Since the e-commerce is a new and emerging business field so
n this regard the competitors are also, keen and are working
aggressively. Therefore the company believes to keep itself vigilant to
the market dynamics, to be tactful to keep the pace and to have
brainstorming ideas to go ahead by dint of innovation and customer
attraction.

SHORT TERM PLANS

Business intelligence department has to do with making plans like
budgets, programs etc.

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Business intelligence department makes these after considering the

feedback and information that is obtained from different departments
on regular basis. The information is collected and put into software. The
software then gives data which is used for sales projection and forecast.

LONG TERM PLANS

POLICIES, PROCEDURES, AND RULES
Though the company promotes a liberal environment, there is no strict
working procedure or guidelines for the steps to follow in working but
compliance must be observed in working. Like there must be no fake
product on board. Whoever is found accused of doing such things that
deviate from the company policy will be dealt as per the rules that are
set by the company.

FACTORS CONSIDERED FOR PLANNING

ECONOMICAL FACTORS:
The most important factor the effect the business of DARAZ is taxation.
The fluctuation of taxes on each day made it difficult to manage the
prices of the products. DARAZ has a small department that are
continuously connecting with the taxation department for the changing
of taxes in products this is necessary for them because the investors
want each and every information about the numbers so they have to
maintain command on their numbers.

POLITICAL FACTORS:

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As DARAZ is an e-commerce organization so political issues usually

dont bother their functions.

TECHNICAL FACTORS:
Day by day as technology is changing within the globe and
organizations which are running through these technologies have to be
updated .So DARAZ have to be updated there software and they are
designing application for android and IOS to made easy for their
customers to shop.

DECISION MAKING
Decision-making is regarded as the cognitive process resulting in the
selection of a belief or a course of action among several alternate
possibilities. Every decision-making process produces a final choice that
may or may not prompt action. Decision-making is the process of
identifying and choosing alternatives based on the values and
preferences of the decision maker.
An effective decision can make the business to ascend while ineffective
and poor decisions can bring massive loss to the organization.
DARAZ employs follow group decision making technique rather than
individual decision making techniques. They encourage everyone to
give their inputs while taking decisions within the departments.
In DARAZ major decision of organization is taken by the top
management they took concerns of employ wherever they want it but
in major decision making top management is involved exclusively. So it
is a kind of brain storming in taking decisions.
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PLANNING TOOLS
FORECASTING

Business intelligence department keeps the data from all other

departments and generate a report by way of software. The report
gives key points and figures to project future sales.
The data keeping and analysis is done on weekly basis.
The sales planning is done by the software name as BI TOOLS its an
internal software data. The employ enter their sales in that software
and it automatically make graphs forecasting and every analysis
regarding that sale the software will give new targets automatically and
they plan to achieve that target accordingly.
The software shows every week that which category and from category
which brand and from brand which region has the highest sale and then
they plan to emphasize on that category, brand or region to increase
their sale

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SCHEDULING
Scheduling is done through software that is Central Desktop. Task
management, scheduling and project management are done through it
tasks are assigned as per schedule

AREAS OF PLANNING
In DARAZ every employ and department depends on each other. They
consider vendor management is the most important area in term on
planning because vendors are the core business generators. They try to
improve their management of vendors on daily basis and try to
enhance their relations with vendors by proposing different
opportunities of vendors sales in relation to DARAZ.
They also emphasize to enhance their customers service because
service is the major section in this organization. Day by day
augmentation takes place within DARAZ by improvement of their
quality of services for customers.

ORGANIZING
The relationship between people, work and resources must be in a way that
leads to the attainment of organizational objectives of no wastage of

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resources. For this, these relations must be organized properly that ensures
effective utilization of resources with maximum possible desired outcome.
Since daraz.pk is newly launched venture, so in the 1 st year of its launch,
organizing was not adequate rather the management had challenge to get
skilled personnels as the turnover was very high in the first year because of
less resources and more challenging work with the company.

DEPARTMENTALIZATION
Departmentalization was done in the second year of launch this new venture.

Departmentalization is done based on functions performed. There are

departments like human resource department, vendor management
department, vendor management operations department, marketing
department, business intelligence department.

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Organizational Hierarchy

AUTHORITY DELEGATION

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Authority or responsibility is delegated to a person based after

evaluating the capabilities and abilities and evaluating whether the

person can handle the responsibility or not.

STRUCTURE OF ORGANIZATION
Though formal structure is defined that outlines relationships among
organizational resources. The management of daraz.pk support informal
structure as well that is built as a result of informal activities of
organizational members. The management of daraz.pk reveals that
unlike other organizations, daraz.pk rather encourages informal
atmosphere and structure in the organization.

COORDINATION
Coordination among different individuals is highly encouraged at
daraz.pk. Coordination is considered to be the key factor for learning
and achieving. Since its e-commerce trade so coordination and
communication plays vital part in gaining information of the

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competitors, knowing the competition and sorting out ways to beat the
market.

GANGPLANK CONCEPT
As stated earlier the coordination and interaction among individuals is
encouraged and an informal environment prevails in the organization.
So the scalar chain of command is not usually followed when one
person has to take any information about another department. He/she
can directly pursue the concerned person rather than formally
conveying the concern through chain of command.

LINE STAFF RELATIONSHIP

An informal friendly environment has been adapted here. Everyone is
believed to have equal value and rights. There is no separate room or
cubicle for upper level management. In short the people are
intermingled with each other and keep a close and friendly interaction.

TASK MANAGEMENT AND INCENTIVES

Tasks are divided among individuals. And work rate and performance is
measured in terms of some key performance indicators. But there is no
incentive attributed to that task completion except for sales force that
is given incentive upon achieving required estimate of business.

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WORK ENVIRONMENT OF ORGANIZATION

The environment is liberal. All employees are treated as equally as
possible and the management strives to encourage harmony and
general good feelings among individuals.

ERROR IDENTIFICATION AND MONITORING TOOLS

Different softwares are used in different departments to track errors and
laps. Like Genera is used in IT Department, Triolan is used in Production
Department for Graphics etc.

CUSTOMER FOCUS AND INNOVATION

There is a department Customer Relationship Management
Department which is responsible to deal with social media, cell phones
etc. the basic aim is to get customers attention and to maintain the
trust of old customers.
To facilitate and enhance user experience, an online shopping app for
Android and iOS phones has been launched. This is designed to provide
a user-friendly and easily accessible platform for customers on-the-go
and simplify shopping by bringing online shopping to the fingertips of
Daraz.pks users.

INFLUENCING

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LEADERSHIP TRAITS
To cope with the new business challenge and to keep pace with
aggressive market competition the management requires the managers
to have some distinct leadership traits, like they must be assertive.
People with strong eye for details and having soft skills as well. They
must have flexibility and adaptability for learning and acquiring in a
challenging environment and managing to succeed.

LEADERSHIP AND TRAINING MEASURES

Since daraz is a newly launched venture so the company is not
investing massive budget on training and development. Rather the
company heirs employees considering their skills and the employees
learn from experiencing things. The company is said to encourage selflearning and adaptability of employees.

COMMUNICATION
Communication is given foremost importance. As stated earlier there is
informal environment. There are no boundaries set for interaction and
communication between individuals of different departments and between
people with different level of authority.

CONCLUSION

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Daraz.pk is new face of business with aggressive market dynamics and

excessive demand of dedication of work and passion. As a new venture
it is lacking behind in budgets and facing challenges because of rapid
market growth and competition. They have adapted new ways of
interaction and working and hence thereby management of things and
have put aside conventional attempts in working and management.
Keeping innovation and uniqueness is making them to achieve the
goals but they have to be more vigilant and aggressive for the
competition. They must implement to conduct leadership and
management training sessions. They should have reward and task
scheme so as to keep the employees up for achieving their tasks and to
motivate them and to extend the tenure.

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