To Acknowledge The Problems Faced by Dewan Motors and To Find Appropriate Solutions

To acknowledge the problems faced by
Dewan Motors and to find appropriate

solutions
Presented To:
Miss Mirrat
Presented By:
Zawad Iftikhar 08-0
Adeel Haider 08-0
Arooj Alvi 08-252
Fahad Kashmiri 08-0
Taimoor 08-0400
Date: 19th Feb, 2010

Table of contents:
Executive Summary……………………………………..page #3
Introduction………………………………………...........page #3
Project methodology…………………………………….page #4
Project timeline……………………………………….....page #5
Conclusion………………………………………………page #5
References……………………………………………….page #5
Executive Summary:
Our proposal is concerned with the Dewan Farooque Motors Limited Our main emphasis is on finding
the root causes of the problems faced by Dewan Motors and recommend practical solutions for them.
We will be critically analyzing the entire problems faced by the company and suggest appropriate
suggestions. The primary problems that are of major concern are bureauracratic environment with in
the organization, failure of flow of information within the organization and increased nepotism.
Introduction/ Background:
Automobile industry is concerned with transporting vehicles, which include passenger class, trucks and
recreational vehicles.
Following are the key players in automobile industry in Pakistan;
 Toyota
 Suzuki
 Honda
 Nissan
 Hyundai
In start the main players in this industry are Toyota, Honda and Suzuki and among this now Dewan
Farooque Motors (DFML) also capture a great part of market share in car industry of Pakistan who
manufactures and sale Hyundai Motors and KIA Motors.Dewan Farooque Motors, as a public limited
company was established in December 1998. Within this month, it signed Technical License and
Exclusive Distributor agreements with Hyundai Motor Company, Korea's No. 1 and becomes world's
seventh largest automobile manufacturer.
The principal activity of the company is to
 Assemble
 Progressively manufacture
 The sales of Hyundai and Kia in Pakistan.
Dewan Farooque motors is facing one major problem which is that decentralization that has not been
implemented in the organization. This problem is gradually proving to be very costly for the
organization. The upper administration has to pay attention on this problem otherwise the company
might suffer huge losses or might not be able to extract huge amount of profits and sales which they are
very much capable to achieve. Due to this problem they are also lacking behind their major competitor
Suzuki Motors, who are capturing huge market share.
This problem of centralization in the organization gives birth to some other problems as well which
make the situation worse for the organization. One of them is the flow of communication within the
organization and outside as well. This lack of communication affects the efficient working of the
organization quite badly. The company is divided in several departments.
 Finance
 Marketing
 Sales
 Service
 Sales
 Human resource
 Production planning and material controlling (production forecasting)
 Administration
They are not utilizing the functional departmentalization fully and to their advantage. These different
departments might be working efficiently within their own segments but they are not gelling together as
a team. This is because of poor communication across these departments within the company. Due to
this poor communication a customer’s problems cannot be addressed to the proper department hence
it creates a lack of customer satisfaction. As a result it might cause them to loose their customers.
Another major problem that is hindering the performance of the company is nepotism. The owners of
the company prefer their relatives over other employees and applicants. This is truly unfair as they hire
those people at the vacant positions who somehow are not that capable of performing those duties. But
as they are the relatives of the owners or have a very strong reference at their back, so they get selected
for the posts. The deserving applicants who have the capabilities to perform well at these positions are
neglected and thus, the company suffers.
Nepotism could be accepted at the lower level while hiring labor or lower level employees but moving
up the hierarchical level, it starts to hurt the company. Whenever a manager’s or any other high post is
vacant the owners bring in a new person through reference. They do not select the person from within
the company and the deserving employees are utterly de-motivated. As they have worked hard for the
company’s success and deserve the promotion to higher ranks after working for the company for such a
longer span of time and having all the experience at the back.
Project Methodology:
We intend to analyze the project by first taking a general survey by the people using the services
of this Dewan motors to get their point of view regarding the services provided by the company.
Secondly asking the employees of the company’s autocrative environment and their problems
concerning it and customer’s service, and lastly getting an interview from Mr. Hassan Bin Ahmad,
Assistant Manager Sales, regarding the issues. We also intend to collect data from secondary source i.e.
internet
Project Timeline:
Collecting secondary data.…………………………………………………………………………………….. ...1 st week
Making questioneer of survey and analyzing it…………………………………………………………..2 nd week
Interview of Mr. Hassan Bin Ahmed and employees within organization …………………..3 rd and 4th week
Summarizing the data………………………………………………………………………………………………. 4 th and 5th week
Presentation of the final report……….……………………………………………………………………….5th week
Conclusion:
We believe that this project will fill an existing gap in the Center's knowledge base, a gap that
undermines our organization's ability to effectively serve its clients by providing comprehensive
information. We hope that by this project we will not only help the company to reduce its existing
problems which will increase revenues, profits, capital and investors but also in retaining its old
customers back.
References:
Our Contact:
Hassan Bin Ahmad
Assistant Manager Sales
Phone: 03018445483
Email: hahmad@dewangroup.com.pk
Sources:
http://en.wikipedia.org/wiki/Dewan_Farooque_Motors
http://www.dewan-motors.com/hyundai/index.php

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To acknowledge the problems faced by

Dewan Motors and to find appropriate

Date: 19th Feb, 2010

Following are the key players in automobile industry in Pakistan;

The principal activity of the company is to

Collecting secondary data.…………………………………………………………………………………….. ...1 st week

Making questioneer of survey and analyzing it…………………………………………………………..2 nd week

Summarizing the data………………………………………………………………………………………………. 4 th and 5th week

Presentation of the final report……….……………………………………………………………………….5th week

Hassan Bin Ahmad

Assistant Manager Sales

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