[SERVIS INDUSTRIES LTD.
CONTENTS:
Overview.
History.
Vision.
Mission.
Products.
Our management.
Organizational structure.
Hierarchy.
Priorities.
Management functions.
Planning.
Organizing.
Leading.
Controlling.
Decision making.
Strengths.
Weakness.
Recommendations.
Overview:
1
| Management of Servis Industries.
[SERVIS INDUSTRIES LTD.]
Service is the leading manufacturer and retailer of footwear in Pakistan. Service

Industry is well known for its consumer products and its contribution to the diversified
industrial growth of the country. Service Industries Limited is a flag ship company of the
group. It operates two modern shoe factories. The two factories are producing the
following products.
All categories of leather footwear and sports shoes.

Canvas shoes of Men, Women and Children.
Rubber Sandals and Slippers
Safety shoes and Footwear for defense force.
Bicycle tyres and tubes, Car tyres and tubes, Motorcycle tyres and tubes.
History:
The servis Industries is a Public Limited

Company Incorporated as a private limited
company on 20th March 1957 in Pakistan
under the Companies Act 1913 and
converted in to public limited company on
23rd September 1959, having its registered
office located at Lahore.
The story of servis begins with a group of fresh, young and energetic friends who
established Service Industries more than 50 years ago. These young men, named Ch.
Nazar Muhammad (Late), Ch. Muhammad Hussain (Late) both from Gujrat district and
Ch. Muhammad Saeed (Late) from Gujranwala District, started business in 1941 at a
small scale in Lahore. At that time, they were only manufacturing handbags and some
other sports goods.
In 1954, they installed a shoe manufacturing plant at industrial area Gulberg, Lahore.
The industry started manufacturing various types of shoes. Later management shifted
the factory from Lahore to Gujrat. The organization was then built up in a most
organized and scientific manner. The company had opened its own whole sale and
retail shops all over the country, enlacing the consumers to buy shoes at fixed prices
which were a new trend at that time. Service Sales Corporation is the Groups marketing
company established in 1959.
Today, the production side of the company has flourished into Service Industries Limited
(SIL) which has world-class shoes, tyres, tubes, and rubber production facilities in
Gujrat and Muridke. SIL is also the leading exporter of footwear. Service Sales
Corporation (Pvt.) Ltd. (SSC) is today Pakistans leading footwear retailer which is also
diversifying into other businesses.
Vision:
To become a global, world class and diversified

company this leverages its brands and its people
Mission:
To be a result oriented and profitable Company by

consistently improving market share, quality, diversity,
availability, presentation, reliability and customer
acceptance.
Products:
Two major product lines of Servis are:
Footwear
Tyres and Tubes
Footwear Products:
Service is continuing its journey on the road to feel
good by connecting three generations in the thread
of
happiness.
Service
Sales
Corporation
is
responsible for marketing the footwear products in

6

local market. Servis is producing variety of footwear. Following are its registered Brands
in this product line:
CHEETAH
Cheetah is Pakistan leading sports and performance footwear brand. It has

come to symbolize the sportsman spirit and passion having no parallel on
the ground. The brand offers a variety of sports shoes including Cricket,
Football, Tennis, Hiking, Outdoor and Basketball. The brand also includes
sport and casual shoes for women as well. It known for its durability and
comfort and has won the brand winning award in 2008.
SOUL COLLECTION
The brand is casual fashion footwear for women. The product range covers
shoes for formal, casual, and party wear. Soul Collection is based on
trendy, fashionable and affordable ladies footwear. It is for ladies who
prefer graceful appearance and to look beautiful and stylish.
CALZA
Calza is a cultural brand of Pakistan. It is a brand for those men who

accepts challenges of everyday life with a smile; motivated for more, but
doesnt forget their background. Calza product range contains affordable
slippers, sandals and shoes for varying weather conditions, but mostly
used in summer.
LIZA
7
Liza is the most acknowledged women footwear brand in Pakistan.

Basically its a casual and a comfort wear shoe, for different occasions and
moods of a woman with a happening lifestyle. The product range
comprises slippers, sandals, and shoes. It is lightweight, comfortable and
stylish brand for smart look.
SKOOZ
It is boys and girls footwear range specially made for school purpose.
These are very light weight and comfortable.
TOZ
TOZ is a brand for Kids that brings fun in their world. It includes shoes for
boys and girls with animated colors and attractive styling. TOZ product line
contains verity of chapels, sandals and close shoes for kids. It requires
extra care for ensuring comfort, fit and safety in product designs.
Tire and Tubes:
Servis has been the pioneer in tyres & tubes manufacturing

in Pakistan. At present Servis is market leader in bicycle
tyres & tubes and hold solid share of motorcycle tyres &
tubes market. Major supplier of these products to Japanese
motorcycles manufacturers like HONDA, YAMAHA,
SUZUKI, and other local motorcycle assemblers in
Pakistan. The major brands of Tyre and tube for auto and
bicycle are following:

Long Life
(Auto and Bicycle)
Long Life Load
(Bicycle)
Cheetah
(Bicycle)
Cheetah Plus
(Auto and Bicycle)
Hi-Speed
(Bicycle)
Super star
(Bicycle)
Racer
(Bicycle)
Golden Star
(Bicycle)
BMX Silver
(Bicycle)
Super Trail
(Auto)
Mamagement:
9
The entire organizational authority is represented with the help of

Organizational Chart, which is headed by a Resident Director. Hierarchy of
10

each department is defined according to need of organization. It has large
number of departments in which positions are grouped according to their
main functional (or specialized) area.
Chairman: Mr. Ahmad Javed

CEO: Mr. Omar Saeed
Management Team
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Ghulam Muhammad (GM SIL Gujrat Factory)

Adnan Wasal (GM SIL Muridke Factory)
Jawwad Faisal (Chief Commercial Officer)
Sohail Chaudhry (GM Domestic Sales)
Muhammad Usman Amjad (Chief Financial Officer)
Hassan Ehsan (Head of Exports)
Rao Humayun Suleman (Head of Human Resource)
Number of Employees:
Company was started the operations with few numbers of employees. It
currently employs close to
9000 people
Hierarchy:
11
Priorities:
12
Product Development and better quality

Increase export of their product
Open new franchise in populated area
Customer satisfaction
Suitable price
According to Servis:
At the heart of all our endeavors lies the spirit of our countrymen. Servis and
its roots are grounded firmly in Pakistan and its people. We understand their
needs, their lives and their dreams. Sharing in their moments both big and
small, Servis has been their companion in happiness for over 50 years. And
with our commitment to constant innovation and uncompromising quality, we
endeavor to delight our customers with the very best products and services.
Management functions:
13
14
PLANNING
-goals
-objectives
-strategies
LEADING
-motivation
-leadership
-communication
15
ORGANIZING
-structure
-design
CONTROLLING
-measurements
-action
-standard
Planning:
They do both long term planning and short

term planning to get their corresponding outcome
or profit. They forecast their future conditions,
opportunities and problems. Their planning
process involves following steps:
Preparation of physibility report

Forecast the demand in market
Finalize their investment
Evaluate the sale margin
Feed back
Future planning:
Servis plans before the beginning of the
year and the season. Like June is going
on and the Management is planning for
Eid and winter.
16

They plan like:
5 years planning,
next year planning,
this year planning,
Event planning,
Seasonal planning etc.
17
Organizing:
Organizing has two modes:

Organizational structure
Organizational design
Organizational structure includes:
WORK SPECIALISATION
DEPARTMENTALIZATION
CHAIN OF COMMAND
CENTRALIZED ORGANIZATION
Organizational design includes:

MECHANISTIC ORGANIZATION
18
Chain of command:
Chief
executive
Departme
nt head
Managers
Executive
s officers
Supervisio
n
Office
assistants
19
Work specialization:
SIL fixed employees for a particular job for getting job specialization AND each
Manager is made responsible for only a particular function, which is his expertise.
Departmentalization:
20
Production
department
Supply chain
management
Quality assurance
department
Account and finance

department
HRM DEPARTMENT
MARKETING
DEPARTMENT
Management of departments:
21
1. Design
2. Product development
3. Sourcing
4. Manufacturing
5. Distribution
6. Marketing
7. Sales
HIERARCHY CHAIN OF SUPPLY:
22
DEPARTMENT OF ACCOUNTING AND FINANCE:

Double entry book keeping system is being used by the
company.
ERP System is used for to run functions
smoothly
Hierarchy:
Manager
Deputy manager
Assistant manager
Quality assurance department:
Quality assurance manager is appointed to check out the qualities matters

and responsible to deliver the goods to finish godowns to avoid end
customer complaints and to goodwill for the company.
RY
V
E
IL
D
O
T
OM
T
S
U
C
R
E
RN
P
O
C
E
C
DP
O
T
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UC
D
O
R
P
IN O
T
RD
P
OC
U
T
IG N
S
E
D
RO
P
T
GT
N
I
P
Y
RA
P
E
S
UC
D
O
L
T
23
24
HRM DEPARTMENT:
H.R develop job descriptions and Organizational chart and define

responsibilities and authorities of the employees who manage, perform and
verify their work accordingly. The HR department is responsible to provide
the man power to the all other
25
HRM Department hierarchy

HR manager (Mr. Rao Humayun Suleman)
Assistant to GM (Mr. Salman Nawaz)
Admin officer (Mr. Khuram Murtaza)
Time keeper (Hafiz Muhammad Arshad)
MARKETING:
26
LEADING:
Servis have very effective leadership which involves managing people and
the work through the means of
Motivation
Communication
Coordination of employees and employers
27
THEY MOTIVATE THEIR USERS:
By annually bonuses these bonuses are

provided in the month of April,
Provide security and insurance
Promotion
Provide working environment
Better hygienic conditions
Free medical facility
Free education for their Children
Cheap food facility at canteen (20 Rs. per
Head)
Commission (over time)
COMUNICATION:
They have very strong communication pattern and
network. Meeting are occurs on regular basis.
Sometimes emergency meetings are called in conflict
situation. Mostly their conflicts are occurring in
production, planning and purchase departments.
These conflicts are resolved in emergency held
meetings
28
COORDINATION:
The coordination occurs among the employees and
manager by visits. Managers have good ability of
command. They issue orders and instructions
without arousing any resentment among the
subordinates. They are able to secure willing
obedience from their subordinates without
destroying their initiative and creativity. They have
good relationships with labor union.
29
CONTROLING:
There are certain performances standards for evaluating results. There is

strong culture of making records and reports which tells about the progress
of the company. So, they use these reports for comparing their performance.
Corrective actions are taken to regulate operations, remove deficiencies and
improve performance. There is a helping department which oversees the
activities of all the departments. If any wrong action occurs it take notice and
provide help about the issue. There are suggestion boxes for the employee.
These suggestions are noticed on weekly basis.
30
DECISION MAKING:
The decisions are made on the basis of the

inputs provided by the lower level employees
and the managers at the middle management
level and on basis of feedback.
The top management takes their time while
making decisions, evaluate all the possible
alternatives before choosing any decision
TYPES OF DECISION MAKING:
31
STAFTING OF NEW
EMPLOYEES:
Staffing (includes recruiting,
selecting, hiring and firing of employees) is
among the skills that become more
important as the complexity and overall
level of performance organization
increases Both external and internal
recruitment takes place in SIL by different
methods as follows:
NEW EMPLOYEES
ARE STAFFED
THROUGH:
Advertisements
Applicants data
bank
Employee
referrals
Interview
Selection tests
32
Servis use following

means to receive
feedback from
costumers:
OFFICIAL WEBSITE
SOCIAL MEDIA
SERVEYS
33
SWOT ANALYSIS:
34
STRENGTHS
35
Highly Qualified Management

One of the most salient advantages SIL has its highly qualified,
c o m p e t e n t a n d experienced management. All heads of departments are equipped
with theoretical knowledge along with vast part of experience of getting things done properly.
Excellent Managerial Policies

A part form highly qualified management, policies and practices are very progressive and
growth-ridden. Every personnel form top to bottom are bound to abide the rules a n d
regulations lay down by the board of directors. Promotions, recognition
o f employees and respect for every one is the strong pillars of organizational culture.
Loyal Employees
The company is enjoying another strong benefit that hardly few companies enjoy that is
employees loyalty. Every organization does it best to hinder the employees from leaving the
job. If turnover rate is high then it had negative impact upon profitability and vice
versa.
Self-Motivated Work Force

SIL enjoys another excellent competitive advantage that it has got self-motivated
workforce. People at SIL take on responsibility as their duty not as burden. They
embrace every assignment whole heartedly and strain every nerve to accomplish it.
Brands Strength
The brands of the service industries have a good strength. Their brands like Don
C a r l o s , L i z a , S c o o p , Toz , C a l z a a n d c h e e t a h a r e c o m p e t i n g w i t h
t h e o t h e r competitor, which are included Bata Pakistan, Hush Puppies, Ihsan shoes etc.
Dueto quality and reasonable price which is increasing the brand strength and customers
reliability on the service brands. Innovation in brands also strength
Production Units
They have two production units.
Service Shoes Industries Limited, Muridke.
Most of local (Don Carlos, Liza all ranges, Skooz, Toz) and export articles areproduced in
Muridke Unit
Service Shoes Industries Limited, Gujrat.
36

Local articles like (Duke, Calza, Cheetah etc.) and many articles of exports are produced at
Gujrat Unit.
Cost Department
Only few companies in the world has cost department and service is one of them
who has independent cost department. Cost department control over per unit cost
with all aspects such as material cost, labor cost, and rates
c o n t r o l b y b i l l verification. Cost department never compromise on
q u a l i t y t h e y b e a r t h e i r o w n rejection but they did not deliver low quality shoe to the
customer that is the cause of their effective and efficient management.
Advanced Technology
They have advanced technology and computerized plants and
m a c h i n e r y i n production process. The computerized machinery and plats
using at Service in the production process are not having any other organization,
even, BATA Pakistan have-not such kind of machinery and technology. The
computerized machinery and plants has the approximately value of Rs. 10000000 each .
Pu Products
The major production of service industry is in Pu sole. They import Pu material fromICI
chemical, France. Pu material is very lightweight sole. By wearing Pu sole we feel
bear footed. They are leader in market in Pu product. They also have introduced the direct
injection that reduces the cost of production.
Employees Education Opportunities

Service also provides education facilities to its staff. Higher education is encouraged for
valuable increase in his staff education that up the moral of the organization and make
better/positive changes within the organization. And lead to introduce new
techniques of production.
Tannery
They have their own tannery for meeting the urgent requirements of orders. If they
purchase all the leather from outsider parties then there will be a possibility to delaying dispatch
in leather order that can be reason of delay in order dispatch.
37
WEAKNESES
38
Advertisement
Now a day electronic and print media play very important role in success of any
organization. Through media we can increase revenue for many times. As they are
popular through out the country they have not proper planning
r e g a r d i n g t o advertisement. Like their big competitor Bata Pakistan they have
not proper way to advertisement on TV & Internet.
No Job Rotation
Leading companies pursues the strategy of job rotation in which one employee is
posted at different position after elapsing certain period of time. SIL does not follow this
strategy yet. The managers are appointed in particular department forever. In case
any employee abandons the job due to particular reason there becomes pause in the
department that creates some intensive problem
Little Empowerment
The management of SIL is highly centralized and almost every decision is taken
atop management. Lack of authority is found to take independent decision by middle
managers. Most of companies execute the policy of deregulation of authority that
plays an important role in satisfaction of consumers. In this direction
b e c a u s e motivation level of employees hinges greatly upon the autonomy of personnel.
39
OPPORTUNITIES
40
E-Market Development
Service has the opportunities of establishing and exploring new market like Internet
market. Service has introduced the e- shops where customer can buys shoes & tyrosine
tubes with out any botheration. It has given new dimension in sales of products and also
a way of introducing company and its products internationally.
Joint Venture
In today business to improve the efficiency of their product
a n d t o a t t a i n n e w technology firms made joint venture with each other. It is also
made for research and to compete with the large firms. Keeping in view this service has
made joint venture with LEVIS and NIKE. This will open new window for service in
international market and in expanding business.
Changing Customer Preferences

This modern world is the world of continuous changes. Innovation in products is they
key element of businesses for their survival. Customers taste changing day by day. To
meet the requirement of customers and taste there is a need of
c o n t i n u o u s introduction of variety. Services industry has the opportunity to
grasp market by bringing innovation in their design and services. Service
captures a huge share of local market by providing their products according to
customer taste.
Entering New Segments of Markets

41

SIL is considered as the shoes & tyres and tubes of motorcycles for some particular and
limited market. Pakistan is one of the most profitable market that consist of huge
number market segments. So, Service has a great opportunity to enter in the
new market segments. They should concentrate on entering new market
segment of ladies shoes and new coming motorcycle companies like Ghana
motorcycles, Super Asia motorcycles companies. Large revenue can be
generated from this market segment.
THERATS
42
Competitors
Service is facing the threat in shape of new competitors in footwear market.
The competitors are both local and multinational companies. In local market
Service Industries is competing with local shoe manufacturer. In
multinational competitors Service has to compete with BATA the giant in shoe
industry and other international brands like HUSH PUPPIES. China and India are
also the new threats in todays market for services.
Price War with Competitors

Tod a y s w o r l d i s t h e w o r l d o f c o m p e t i t i o n a n d t o c o m p e t e w i t h t h e
c o m p e t i t o r s c o m p a n i e s r a p i d l y c h a n g e s t h e i r p r i c e s t r a t e g y.
O r g a n i z a t i o n s s e t t h e i r p r i c e s according to their competitors to survive in the
market. In shoe market service have the price war with BATA, and other local
competitors. Now service also has price war with china. In price war the firm who control
their cost of production and provide their products at cheap prices can one this war.
Rebate Reduction
Rebate is the subsidy which government provides to exporters to enhance exports.
If Rebate has reduced which increases cost of production due to which company has te
43

face tough competition. Since last two years government has reduces rebate from12%
to 5 %, which increase the cost of production. Due to which service industry
facing tough competition.
Increase in Taxes
There are man y types of taxes which service industr y has to face
i m p o s e d b y Government. There is high rate of taxes due to which it increases the
expenses and cost of production. Mainly taxes imposed by government are
sales tax, income taxed.
Increase in Rate of Duties

Government has also increased the rate import and exports duties, which is
also th r e a t f o r s e r v i c e b e c a u s e i t i n c r e a s e s t h e r a t e o f r a w
m a t e r i a l a n d c o s t o f production. The rate of duties is 25% while rebate has
reduced to 5%. There is high freight cost.
Political Instability
Pakistan is a country that politically not stable. There is no stable government from l a s t
55 years. This has a great impact on industrialists and investors.
S e r v i c e industry has threat due to political instability because in instable government
there is rapid change in laws, rules and regulations.
WTO Regime
WTO means world trade organization. It is an international organization responsible for
global rules governing trade among nations. It ensures trade free and smoothly. It was
established in 1995. Due to WTO regime service have to face many hardships in shoe
industry because it increase the number of competitors. And also reduce the share in
shoe market. The main threats due to WTO are china and India as they
provide their product at low price because of cheap labor.
Economic Threat
The service industries have to face economic threats. The first economic threat is the
high prices of electricity. There are no subsidies for the service. Another threat is threat
of inflation, which causes the rise in prices of things. In recent years oil
prices have gone up due to which it has increased the transportation cost
which increase the cost of production
44
Recommendations
45
The company must reduce its operating expenses in order to compete

in the market on price basis because operating expenses are
controllable factor.
Footwear industry is highly fashion industry; hence SIL must improve

the efficiency of the product development in order to bring new design
and style in the market to satisfy the consumers
Different training courses should be arranged for the up lifting and

improving the quality of work for employees
They provide transportation facility to only female employees I think

male should also be provided with conveyance convenience. This will
create the easiness for workers and reduce the wastage of time.
46
47

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[SERVIS INDUSTRIES LTD.

| Management of Servis Industries.

[SERVIS INDUSTRIES LTD.]

Service is the leading manufacturer and retailer of footwear in Pakistan. Service

All categories of leather footwear and sports shoes.

| Management of Servis Industries.

[SERVIS INDUSTRIES LTD.]

The servis Industries is a Public Limited

| Management of Servis Industries.

[SERVIS INDUSTRIES LTD.]

To become a global, world class and diversified

| Management of Servis Industries.

[SERVIS INDUSTRIES LTD.]

To be a result oriented and profitable Company by

| Management of Servis Industries.

[SERVIS INDUSTRIES LTD.]

responsible for marketing the footwear products in

| Management of Servis Industries.

[SERVIS INDUSTRIES LTD.]

Cheetah is Pakistan leading sports and performance footwear brand. It has

Calza is a cultural brand of Pakistan. It is a brand for those men who

| Management of Servis Industries.

[SERVIS INDUSTRIES LTD.]

Liza is the most acknowledged women footwear brand in Pakistan.

Tire and Tubes:

Servis has been the pioneer in tyres & tubes manufacturing

| Management of Servis Industries.

[SERVIS INDUSTRIES LTD.]

(Auto and Bicycle)

Long Life Load

(Auto and Bicycle)

| Management of Servis Industries.

[SERVIS INDUSTRIES LTD.]

The entire organizational authority is represented with the help of

| Management of Servis Industries.

[SERVIS INDUSTRIES LTD.]

Chairman: Mr. Ahmad Javed

Ghulam Muhammad (GM SIL Gujrat Factory)

| Management of Servis Industries.

[SERVIS INDUSTRIES LTD.]

| Management of Servis Industries.

[SERVIS INDUSTRIES LTD.]

Product Development and better quality

| Management of Servis Industries.

[SERVIS INDUSTRIES LTD.]

| Management of Servis Industries.

[SERVIS INDUSTRIES LTD.]

| Management of Servis Industries.

[SERVIS INDUSTRIES LTD.]

They do both long term planning and short

Preparation of physibility report

| Management of Servis Industries.

[SERVIS INDUSTRIES LTD.]

next year planning,

this year planning,

Seasonal planning etc.

| Management of Servis Industries.

[SERVIS INDUSTRIES LTD.]

Organizing has two modes:

Organizational design includes:

| Management of Servis Industries.

[SERVIS INDUSTRIES LTD.]

| Management of Servis Industries.