PAKISTAN TOBACCO COMPANY

Group Members
FARAZ SHAHID
IBRAHIM HAFEEZ
ALI AWAN
MALIK HASSAM
MALIK AHEMAD
SUBHAN ASHRAF
INTRODUCTION
 Introduction

• Incorporated in 1947
•
• Operating under the license of British American Tobacco
(BAT)
•
• ‘Seed to Smoke’ path
MANAGEMENT OVERVIEW
 Management Overview

• Interview
• Mr. Naseer Ali, the strategic planning manager
• ‘Work is never ending’, he said
•
• Grading System of the company defines the Vertical
Hierarchical present in Organization
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§
ORGANIZATION STRUCTURE
Organization Structure
 Organization Structure

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• There is coordination among the hierarchical levels through
formalization
•
• Centralization exists
ENVIRONMENT
 Environmental effects

• Manage Environmental Elements

• Adaption
• Favorability Influence
•
• External Factors impacting the organization
• Legal-political Element
• International Element
• Socio-cultural element
•
• Characteristics of the Organization's Culture are
Administrative
•

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MANAGERIAL DECISIONS
 Managerial Decision Making at PTC

§
• Crisis issues are given priority over non-crisis issues
•
• Programmed decisions are made by the middle-level
management
•
• Non- Programmed decisions are made by the top-level
management
•
• Barriers to effective decision making are eliminated at all
levels
•
STRATEGY DEVELOPMENT TO ACHIEVE
ESTABLISHED GOALS AND PLANS
 PTC’s Vision

§
• “ First choice for everyone”
•
• Vision encompasses the headship in tobacco industry that
is to be on the apex
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§
 PTC’s Vision
•The three strategies include:
•
• Growth
• Includes organic growth and mergers
•
• Productivity
• includes increasing efficiency with minimum resources
•
• Responsibility
• includes socially responsible and following business
principles.
 Mission Statement

• “Our strategy reflects our vision, being the champion of

growth, productivity, responsibility and the winning
organization”
•
• Importance is given to the customers
•
• Use of the latest technology in the production area to give a
competitive edge to the company
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§
Strategic Management Process
•

§
• Vision formulation which leads to the statement of the Mission.
• The mission is then converted into performance Objectives
• To achieve objectives you develop Strategies
• Strategy Implementation
• Evaluation of performance
•

Levels of Strategies
•

• Corporate Level
• Business Level
• Functional Level
 Environmental assessment

§
• Rivalry; Lakson Tobacco
•
• Bargaining power of customers; low
•
• Bargaining power of suppliers; high
•
• threats of new entrants ; not much
•
• threat of substitute
 SWOT

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• Strenght : Market leader, best H.R
•
• Weakness : Highly regulated market
•
• Opportunity : Own leaf operations (leaf growing areas)
•
• Threat : Competition, restrictions by importing countrries
STRATEGIC ORGANISATION DESIGN
 PTC Structure

• PTC follows a functional structure

•
• Functional structure is departmentalization according to the
functional or specialization area.
•
• PTC has HR Manager, IT Manager, Finance Manager,
Finance Manager, Supply Chain manager, Marketing
Manager, Legal Department Manager
 Uses of Functional Structure for PTC

Advantages
• Disadvantages
•

§ Possible Economies of scale for PTC § Managers are trained for a narrow
field of work
§ Functional Structure suitable for
stable environment § Restricted view of organisation
among employees
§ Coordination within functions
§ Difficult to measure performance
§ Development of expertise gives
competitive advantage
HUMAN RESOURCE (HR)
 Human Resource

• HR development
• Recruitment
• Employee database
• Public relations
•
• Training programming
• Company orientation
• Share experiences
• Basic guidance of job description
•
•
LEADERSHIP
 Leadership

Sources of leadership power

•

•
• legitimate power
• reward power
• coercive power
• expert power
• information power
• Referent power
•
MOTIVATION
 Motivation

• Belongingness needs- employees has good relation with

coworkers and higher management
• Esteem needs- as we move upper hierarchy level they get
good important projects, and good offices.
• Than they develop their capabilities and such environment
is created in PTC.
 Motivation

• Factors such as growth, recognition, pays, working

conditions etc.
• Effort performance expectance- employees put their full
effort.
• Performance outcome- resources efficiently, which leads
to required outcomes.
RECOMMENDATIONS
 Recommendations

• Should use divisional structure

•
• Should remain attentive to the changing situation and
should look for new opportunities
•
• Should favour the approach of decentralization over
centralisation
•
• Should formulate more ways of enhancing the training and
development
•
• Some authority should be delegated to the lower level
Thank You!