A Project of Operations Management

Submitted to:
Ms Asia Bibi
Submitted by:
Naseem Ashraf (FA14MBA-11)
Sehar Khawer (FA14MBA-17)
Ali Raza (FA14MBA-08)
Sohail Anjum (FA14MBA-27)

LAHORE GARRISON UNIVERSITY

DHA PHASE VI, SECTOR C, LAHORE
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 Acknowledgement
We have taken efforts in this project. However, it
would not have been possible without the kind
support and help of many individuals and Lahore
Garrison University. I would like to extend my
sincere thanks to all of them.
We are highly indebted to Ms Asia Bibi for her
guidance and constant supervision as well as for
providing necessary information regarding the
project & also for her support and time in
completing the project.
We would like to express our gratitude towards our
parents & our university for their kind co-
operation and encouragement which help us in
completion of this project.
Our thanks and appreciations also go to our
colleagues who have willingly helped us out with
their abilities.

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EXECUITIVE SUMMARY
Walls is an ice-cream company which has leading ice-cream business in Pakistan. Walls is
a SBU of uniliver which is a famous multinational of the world with variety of products
regarding different areas of life. Walls initially launched in 1905 with a meat business and
later the owner, Mark Fisheries shifts their production from meat to ice cream
business.1970s research about the trend and liking of ice-cream, greatly motivated him for
growth of his business.
In 1995 Walls launch its factory in Pakistan in 11 months recorded time with twelve
products. Walls enter in Pakistani market through acquisition strategy. Polka was having a
good business of ice cream in Pakistan with some variety of products but after the
launching of walls give them tough time in survival of their business in ice cream industry
of Pakistan because Walls was having more variety and they were more quality oriented as
compare to the polka. So, after huge loss polka was acquired by Walls.
Upon thoroughly visit on their marketing strategy, it is concluded that their target market
is not limited as they are targeting every age group either demographically, geographically
or psychographically.
Their organizational strategies at corporate, business and operational level are also
discussed. These strategies in Walls are producing their desire result in the form of large
market share and huge profit margin. Walls currently have no strong competitors and
these forces mostly affect altogether with competitor.
SWOT analysis, which depicts the internal and external strengths and weakness, is also
been considered to determine the worth of the applied strategies.

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INTRODUCTION:
This report is prepared on the demand of the course instructor Ms Asia Bibi for the course of
OPERATIONS MANAGEMNT to determine the operations of the organization. This report
contain the background history of the WALLS , its launching and operation in Pakistan, its
acquisition with polka and its products with respect to target market and market segmentation.
This report has also covers the operations of the different department of the organization which we
evaluated after the visit of the all departments of the entire organization and especially operations
department by taking a thoroughly interview of the operations manager.

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BACK GROUND HISTORY:
Walls is the brand name of Unilevers heart brand ice cream business, used originally in the
united kingdom and also currently in china, Malaysia, Pakistan, Qatar, Saudi Arabia, Singapore,
Maldives, Vietnam and India.When Thomas wall took over the family meat and pie business in
London in 1905, poor summer sales encouraged him to think of other alternatives. Then he got the
idea of ice cream but this idea was shelve due to World War 1 in 1918.

Mac fisheries bought Walls in 1920 who then sold Walls to Lever Brothers in 1922. In 1922,
Walls ice cream started production. By the 1950s, wartime rationing produced a big appetite for
ice cream sales reached 46 million by 1959 and Walls opened a large ice cream factory in
Gloucester. Supermarkets began to stock ice creams in addition to small high street shops. Market
research in the 1970s showed that practically everyone loved ice cream.
In 1993 Lever Brothers formulated a team to search for new business potential in Pakistan. The
team concluded that there is a lot of potential in ice-cream market in Pakistan. In 1995 Walls
launch its factory in Pakistan in 11 months recorded time with twelve products. Walls enter in
Pakistani market through acquisition strategy. Firstly polka demands high price for their company
but latter when Walls starting to gain large market share polka show willingness for
acquisition .So they purchased polka in 1997.

Walls was launched firstly in Lahore in 1995 and later year in Karachi and Islamabad. In 1996,
it was launched in Faisalabad and in 1997 it was launched in Multan, Quetta, Hyderabad,
Peshawar and Sukhar as well, and now its the largest ice cream brand in Pakistan.

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 VISION

Our vision is to grow our business, while decoupling our environmental

footprint from our growth and increasing our positive social impact.

MISSION
Our business has always been driven by a sense of purpose, a thread that
connects us to our founding companies and their social missions to improve
health, hygiene and livelihood in their communities.
We continue to believe that business must make a positive contribution to
addressing the challenges the world faces and that this is the only way a
business will succeed.
In 2009, we launched The Compass-our strategy for sustainable growth,
setting out our determination to build a sustainable business for the long term
sustainability targets.
Walls aims to provide hygiene and nutritious flavors of ice cream and Kulfa
to our target market e.g. students, households and kids.
We continue to work towards the ambitious targets we have set ourselves for
helping our environmental impact, improving the health and wellbeing of 1
billion people and enhancing the livelihoods of the millions.

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We will grow our business by building on our strengths combining our scales
and expertise with our understanding of consumer in diverse markets to
continue providing brands and services that people wants and need by
deploying latest and advanced technology.
Our sustainable business model is to making a difference to millions of
peoples lives and to our environmental impact, and we will keep working to
make these contributions greater not only for general public but also by
enhancing the living standards of the employees.
Were also already seeing evidence that it is strengthening our business by
helping to drive growth, trust and to reduce risk and cost.

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*Components of Mission Statement:
Product
Customers
Philosophy
Market
Technology
Self-Concept
Concern for Survival, Growth and
Profitability
Concern for Public Image
Concern for Employees

ORGANZIATION HIERARCHY

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 Chief Executive Officer

Navid Ali khan

Finance manger

Human resource manager Marketing manager

Bella Dal

Agha Ali Omair Amir

GOODS CLASSIFICATION

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WALLS ice cream comes under the foods and beverages part of the Unilever chain.
WALLS ice creams are consumer, nondurable, convenience, packaged goods. WALLS has
a variety of products, ranging from low priced desserts like Rainbow to premium priced
desserts like Cornetto and Magnum.
Raw materials: Contract Suppliers
Production Unit: One Unit at Manga Mandi
Production Capacity: 10,000 Liters / day

PERISHIBILITY
Required Temperature: -18C.
Life time (Out of freezer): 25 min.
Expiry: 10 months.

PACKING
Multiple packaging

Small packs:
Sticks
Cones
Cups
Take home packs:
liter packs
1 liter packs
Tubs
Bulk packs:
10 liter packs

GROWTH RATE

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The ice cream industry itself is growing with a reasonable rate, but for WALLS the growth
rate is quite encouraging. The major reason for prevailing this dream like growth rate is
the radical growth seen in Cornetto in recent years. WALLS growth rate for recent year
was 12%.

MARKET SEGMENTATION
Few of the characteristics upon which the market has been segmented are discussed below:

GEOGRAPHIC
WALLS have segmented its market in four sections in Pakistan such as South, which is
Karachi to SadqAbad and than Central from SadqAbad to Gujranwala and then North
from Gujranwala to upside country.

DEMOGRAPHIC
Demographic variables of WALLS target market are mostly age and income based.
WALLS have created many sorts of ice creams to cater all age groups. The most popular
ice creams amongst kids are Paddle pop, in teenagers Cornetto and Magnum, commercial
packs are popular in families as whole. WALLS cater both females and males in the
society. If we consider the income segmentation, WALLS is targeting upper, middle, and
lower middle income levels.

PSYCHOGRAPHIC
The psychographic segmenting is done on the basis of the taste and health conscious
consumer. WALLS targeted its market by creating an image of high quality and hygienic
products. WALLS was for anyone, anywhere and at any time, this very well explains
psychographic characteristic of WALLS consumer.

COMPETITIVENESS
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Competitiveness is refers to how effectively an organizations meets the needs and wants of
the customers relative to other that offer similar goods and services. Major factors which
are responsible for competition are:
Level of detection of customer needs and wants
Satisfaction of customers
Pricing
Quality
Promotion and marketing of the business
Basic two departments which have direct impact on competitiveness are:
Marketing department
Operations department
Quality oriented products and services have gives competitive edge to the organization.
Convincing and motivational marketing has also leads an organization to best maximum
level of output.

STRATEGY
Every organization sets some goals and missions for the growth and profitability of the
organization. Plans and actions which are developed and taken to fulfill those goals are
known as strategies. Different types of strategies are applied such as:
Low cost
Scale based
Specialization
Flexible operations
High quality services
Operation strategies are evolves in creation and delivering the goods and services while
generic strategies are evolved in entire activities of the organization. Strategies are formed
to meet best possible outcomes from minimum output. Factors which should keep in mind
while formulating strategies are:
Distinctive competences
Environmental scanning
SWOT
Order qualifier
Order winner
Realistic and outstanding strategies by efficient planners can lead an organization to not
only at the stage of order qualifier but also to the stage of better then competition, means
order winner.

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PRODUCTIVITY
Productivity is the measure of the efficient and effective use of resources to gain maximum
output. It can also be defined as the ratio of inputs to outputs. Productivity is the
performance of the organization which can be measured by given formulas:

P=output/input

Productivity growth=current productivity-previous productivity

Previous productivity
Productivity growth is compulsory to control inflation and for the sustainable economy.
Productivity growth is measured to check the:
Overall performance of the organization
Departmental performance e.g. human resource, marketing, finance etc.
Planning workforce requirements
Scheduling equipments
Financial analysis
There are a lot of factors which affect productivity but some of them have very adverse and
aggressive affects on productivity such as:
Capital
Technology
Management
Quality

FORECASTING
Forecasting is a statement about e future value of a variable of interest such as demand. Two major
aspects of the forecasting are the level of demand and the degree of accuracy that can be assigned to
forecast. It can also be long terms and short term on the basis of the potential of the organization. It
has direct impact on the decisions and activities of the organization.

Why forecasting?
To minimize risk
To balance demand and supply (break even point)
To determine the customer behavior
To reduce uncertainties which have negative impact on decision making
To predicts the demand of new and existing products
Anticipating customer needs
Projecting quality improvement
Predicting cost benefit analysis

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 STRATEGIES OF THE ORGANIZATION

Strategies

Business level Corporate level Functional level

Growth strategy Renewal strategy

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Corporate level strategy
Corporate level strategies include growth, renewal and managing and evaluation strategies.

Growth strategy
Walls has adapted latest and advanced technology for the profitability and customer
satisfaction. Walls have higher growth rate which shows the worth of their growing
strategies.fo more growth company should use latest technology s compared to its
competitors. On the basis of nutrition and quality, usage of cow milk is the competitive
edge of the organization.

Renewal strategy
Customer always like innovation in the product line. Although walls has innovation is the
product line and taste by emerging new flavors on continuous basis, but innovation in
packaging and consistent taste and quality should also be considered for growth .

Business level strategy

At business level, walls has applying innovative and diversifying strategy without diverting
from the origin of the product e.g. without diverting from ice cream product rather they
are bringing innovation in taste and diversification in same product line.
Their business units in ice cream lines are:
Walls twister
Wall's cartons
Wall's Cornetto
Wall's Magnum
Wall's Moo
Wall's Rocket

Functional \operational level strategy

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Day to day activities of the different departments like finance,Human
resource,Marketing ,Supply chain and Production departemnts are manged and evaluated
to maximize the profit,to gain customers loyality and to improve Total Quality Controll
System.

Their area wise activities should be evaluated on monthly basis because area wise visits of
the production unitsshow the pros and cons of the curent startegies and thus they help in
future forecasting of the organization.they should hire some hidden supervisor fo the
evaluation of the activities in entire organization as it will remove the element of fraud.they
should also remove the intermediaries of all activies as it will not tonly reduce the cost but
it will also be beneficial for the organization in sence of experience.

MACRO ENVIRONMENT

Political environment
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Pakistan is a country in which political environment is not stable since some last years
which results in lack of foreign direct investment which effects globalization process of the
local organization. Heavy taxes and lack of subsidies not only affect local producer but also
foreign investors. Walls as it is business unit of the Uniliver which is not severely affected
in Pakistan by political instability but its only increase their cost of production and thus
ultimately customers are facing high prices.

Economic environment
In Pakistan there is a strong black economy due to the circulation of black money
illegal business like smuggling. Pakistan economys is not growing well as it is facing strong
power crisis due to continuous increase in oil prices and also due to loan.
Walls is facing the problem of power shortage which make their production costly because
heavy generators cost they are bearing and they accommodate that cost by increasing the
selling price of every unit.

Social Environment
Now a days people are becoming more price conscious due to inflation and crises
of Pakistan. But Walls is still generating profit because their target market is not only some
certain age groups rather they are targeting every age group.
They are fulfilling the element of corporate social responsibility by joining hands with
different NGOs for the welfare of the billion of the people not only in Pakistan but also in
the entire world.

Technological environment
Walls is using information technology to coordinate and communicate not only
within company but also with extreme parties. They are using electronic management
systems to reduce the cost of handling the inventory order.
They adapted latest technology for the convenience of their customers, suppliers and also
for employees. Marketing through latest technology has increased their sales up to 100%.

Legal environment
Walls currently is not facing any legal issue regarding its employment rule, employees
concerns and product safety and its environmental impact so they are generating maximum
profit without any legal restriction.

SWOT ANALYSIS

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Strengths
Financially strong
Goodwill and brand name
Products can be consumed by suger patients
Caters to every age group
Corporate social responsibility

Weaknesses
Low level of demand internationally
Low target market

Oppertunities
Increse in range of products
Increse in population thus increse in demand
Awarnessis increasing thus quality oriented customers

Threats
Similar atste with HICO
HICO nad OMORE are also capturing market share
Competition
Government instability

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CONCLUSION
Walls is an SBU of Uniliver, which is one of the worlds largest multinational
organization.This report include the little overview of the organziation,its backgroud
history,acquisition and merger with polka.It also include its origin and survival in
pakistan.This report also include the opeations of different department,different strategies
which are applied in organization and also its macro environment. Swot analysis which
depicts the internal and external strengths and weaknesses,is also highlighted.

Table of content

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Acknowledgment-------------------------------------------------------------------------------------------2
Execuitive summary---------------------------------------------------------------------------------------3
Introduction-------------------------------------------------------------------------------------------------4
Background history ---------------------------------------------------------------------------------------5
Vision---------------------------------------------------------------------------------------------------------6
Mission-------------------------------------------------------------------------------------------------------6
Components of mission statement----------------------------------------------------------------------7
Organization hierarchy-----------------------------------------------------------------------------------8
Goods classification----------------------------------------------------------------------------------------9
Perishibility--------------------------------------------------------------------------------------------------9
Packing-------------------------------------------------------------------------------------------------------9
Growth rate--------------------------------------------------------------------------------------------------10
Market segmentation--------------------------------------------------------------------------------------10
Competitivness----------------------------------------------------------------------------------------------11
Strategy------------------------------------------------------------------------------------------------------11
Productivity--------------------------------------------------------------------------------------------------12
Forecasting---------------------------------------------------------------------------------------------------12
Strategies of organization---------------------------------------------------------------------------------13
Corporate level strategies---------------------------------------------------------------------------------14
Bussiness leve strategies-----------------------------------------------------------------------------------14
Funtional startegies----------------------------------------------------------------------------------------15
Macro environment(PESTEL)--------------------------------------------------------------------------15
SWOT analysis----------------------------------------------------------------------------------------------17
Conclusion---------------------------------------------------------------------------------------------------18

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