1. Contents
INTRODUCTION .................................................................................................................................................. 3
MISSION & VISION STATEMENT ..................................................................................................................... 3
MISSION ............................................................................................................................................................ 3
VISION ............................................................................................................................................................... 3
NAME OF THE COMPANY ................................................................................................................................. 3
GENERAL GOALS AND OBJECTIVES .............................................................................................................. 3
SWOT ANALYSIS................................................................................................................................................. 3
STRENGTHS...................................................................................................................................................... 3
WEAKNESSES .................................................................................................................................................. 4
OPPORTUNITIES .............................................................................................................................................. 4
THREAT ............................................................................................................................................................. 4
COMPANY IN FOCUS .......................................................................................................................................... 5
Who are the Stakeholders in ELECTOPOWER ENGINEERING................................................................. 5
Identifying our stakeholders ................................................................................................................................ 5
Impact of the stakeholders on the project ............................................................................................................ 5
Co-ordination with a geographically located team .............................................................................................. 5
Mode of effective communication with stakeholders ......................................................................................... 5
Advantages of managing stakeholder’s expectations .......................................................................................... 5
Disadvantages of not managing stakeholder’s expectations ............................................................................... 6
Managerial / Leadership style ................................................................................................................................. 6
Authoritarian (autocratic) .................................................................................................................................... 6
Participative (democratic) ................................................................................................................................... 7
Delegative (free reign) ........................................................................................................................................ 7
Forces .................................................................................................................................................................. 8
Use of Consideration and Structure .................................................................................................................... 8
Strategy Choices ..................................................................................................................................................... 9
INTERNAL STRATEGIC PROBLEMS IDENTIFICATION & ANALYSIS .................................................. 9
VERTICAL INTEGRATION ............................................................................................................................. 9
CERTIFICATION .............................................................................................................................................. 9
EFFECTIVE MARKETING ............................................................................................................................... 9
FOREIGN COLLABORATION....................................................................................................................... 10
HIGH CAPACITY ............................................................................................................................................ 10
MANAGEMENT POLICIES ............................................................................................................................... 10
Pricing Policies ................................................................................................................................................. 10
Promotion Policies ............................................................................................................................................ 11
Distribution Channel Policies (Channels to Be Used for Distribution) ............................................................. 11
Human Resources Policies ................................................................................................................................ 11
Financing Policies (Sources & Uses of Funds) ................................................................................................. 11
Quality Management Policies (Quality system Principles & Management) ..................................................... 12
Environmental Policies ..................................................................................................................................... 12

2. Social Responsibility Policies and Code of Ethics ............................................................................................ 12
Customer Relationship Management Policies ................................................................................................... 12
GROWTH STRATEGY ....................................................................................................................................... 12
Ideal Case .......................................................................................................................................................... 12
Likely Case ....................................................................................................................................................... 12
Organizational Chart ............................................................................................................................................. 13
COMPETITOR ANALYSIS ................................................................................................................................ 14
PERFORMANCE MEASURES ........................................................................................................................... 14
(1) SHORTAGE OF RAW MATERIAL ...................................................................................................... 14
(2) QUALITATIVE DISTURBANCES ........................................................................................................ 14
(3) INTERRUPTION OF PRODUCTION .................................................................................................... 15
(4) SUB - STANDARD PACKAGING ........................................................................................................ 15
(5) COMPLIANCE OF DISPATCH ORDER ............................................................................................... 15
CONTROL TOOLS THAT WILL BE USED ...................................................................................................... 15
ANNUAL REPORT CONTENTS ........................................................................................................................ 15

3. INTRODUCTION
In this report the complete analysis of Electropower Engineering Industry is explained. The complete
profile of our company is also illustrated through SWOT analysis. The competitor analysis and market
share of Electropower Engineering is also discussed here. You can find all the preliminary analysis in
the below project.
MISSION & VISION STATEMENT
MISSION
Our customer loyalty is our profit & way of succession. So we trust on quality and customer trust on us and the
balance of this relation increases our market share day by day.
VISION
We will be the market leader in all segments of electrodes because we have the tools of succession.
NAME OF THE COMPANY
We named our company as ELECTROPOWER ENGINEERING since we’ll be competing in Electrode Industry. We
chose this name since it reflects the industry and implies a Powerful image to the market.
GENERAL GOALS AND OBJECTIVES
The Welding Electrode industry in Turkey is a extremely large industry. It comprises of the manufacturing of
electrodes used for arc welding. There are three broad categories of electrodes, differentiated by the raw
material used to manufacture each.
1. General Purpose Mild Steel (GPMS)
2. Special Purpose Mild Steel (SPMS)
3. Special Electrodes (Maintenance, Stainless Steel, Cast Iron and Bronze).
Turkey, as a fast growing economy with many investments on new construction projects, powerplant projects,
docks, new building sites...etc needs giant amounts of electrodu industry products.
Considering such a high demand, we want to reach our production and sales targets which we will update in
every 6 months. Our short term objective is to grow twice as big as we start the company today, and in the long
term we want to be the leader in the market which we want to achieve in 10 yeaTL
SWOT ANALYSIS
STRENGTHS
 High Capacity for Production as compared to other companies
 Well Reputation (With Regarding to Associated Companies)
 High Quality
 Low Price / Medium Quality Products Diversity
 Customer Loyalty
ELECTOPOWER ENGINEERING will have the capacity to produce 7,000 tons per year as compared to other
companies which are producing maximum 5,500 tons per year. So the company has full resources to become a
market leader.
Being the part of ELECTOPOWER ENGINEERING Group (famous in diversified business of engineering), the
company have the advantage of well reputation of its associated companies especially in institutional sector.

4. ELECTOPOWER ENGINEERING targeting the Gate & Grill segment which are more price conscious as compared to
other segment. This segment only prefers the low price electrode and they don’t saw the quality of product. So
the company will offer them low price electrode with medium quality.
By giving medium quality on lower price the customers are prefer to ELECTOPOWER ENGINEERING as compared
to other brands. Because customer are satisfied with price and they also get quality product. So within a short
span of time the company will succeed in getting customer loyalty. The customer loyalty will help the company to
increase the product line or to offer new brands.
WEAKNESSES
 New entrance to the Market.
 There are already well known producers in the market.
 Unexperienced / Non Professional Management.
The major weakness of ELECTOPOWER ENGINEERING is that the top management is unexperienced. In time we
are going to be more and more experienced and professional as well, then no doubt the company will be a
market leader.
The company is succeeded in getting the customer loyalty. It is easy to get the customer confidence but it is
more difficult to maintain it. So after getting the customer loyalty the company has to pay attention on the quality
of the product. Complaints can be received from different quarters about:
OPPORTUNITIES
The demand of the company’s brand of Welding Electrode is very high in the market. If the company give full
attention and financing to this project it will take more market share from the competitors because people are still
demanding for its brand because of its quality. The company have a good manufacturing capacity with which it
can fulfill the market demand since the company’s market is increasing by 11.3 % per annum for the Welding
Electrode. Currently demand in Turkey is over 30 Ton per year and it has a growth rate of 11.3% per annum. In
Turkey at the moment the total production capacity of all the manufacturing units are estimated to be utilizing
their full capacity.
ELECTOPOWER ENGINEERING have the capacity and resources to also produce General Purpose Mild Steel
(GPMS) and Special Purpose Mild Steel (SPMS). So it is the best opportunity for ELECTOPOWER ENGINEERING
Engineering to manufacture electrode for this segment also. To capture the share of this segment company take
advantage from the reputation of its other associated companies.
THREAT
Imports are considered the greatest threat in this industry. The share of imports in the country’s total
requirement was a healthy 40 % in 2010 - 11, which has rapidly declined due to capacity expansions and the
setting up of new GPMS plants by local manufactureTL Currently the imports only have a 16 % market share. The
GPMS industry feels threatened especially by the Chinese imports which in 2005 - 06 accounted for 69 % of the
total imports by TL volume. The second largest import was from South Korea which had a 10.30 % share in TL
volume. Other significant imports were from Australia (4.39 %), Germany (3.55 %) and the USA (4.35 %). The
electrodes imported from the western countries and South Korea are special purpose electrodes. The percentage
of the imports of special purpose electrodes is not expected to decline due to the lack of technology in the
country to manufacture them.
Even the Chinese imports, which the local industry feels are a great threat, have declined. From the data one can
see that the Chinese imports enjoyed a very high share in terms of TL volume i.e. 94 %. But the increase in price
from TL 29697 per Ton to TL 40707 per Ton in 2007 - 08 decreased the Chinese share to 69 %. The decline in
the imports brought about by the increase in capacity of the local manufacturers may lead the local
manufacturers to charge higher prices because in the past due to the market presence of the imports the local
industry had no choice but to follow prices of the imports. Currently the average price of the local electrodes is TL
96,000 per Ton whereas the average C & F price of the imports according to the Federal Bureau of Statistics`
figures (Foreign Trade 2010 - 11) was TL 60780 per Ton which after custom duty of 70 % gives the retail price of
the imports as approximately TL 105,000. Upon inquiry in the market the Chinese import was quoted to sell at TL
119250 per Ton.

5. COMPANY IN FOCUS
Who are the Stakeholders in ELECTOPOWER ENGINEERING
1. Mustakeem Nadeem
2. Seniz Pamuk
3. Guntac Kaki
4. ELECTOPOWER ENGINEERING Group (corporate Stakeholders) Silent Partner
Our Company stakeholders are mentioned above who can positively or negatively impact the output of the whole
project. It is very important for our efficient project manager to identify the names of stakeholders during the
initiation stage of the project. Our stakeholders can be external and internal both. For examples ELECTOPOWER
ENGINEERING Group our corporate stakeholders can be the customers, the clients, the project team members,
the functional managers, the account managers, the operation managers, sellers, buyers, sponsors, etc. It is
mandatory for our project manager to identify our stakeholders and manage their expectations throughout the
life-cycle of the project.
Internal stakeholders include Mustakeem, Seniz, Guntac and other managers or employees and are those that are
situated within the company and affect the daily routine of the project. External stakeholders like ELECTOPOWER
ENGINEERING Group are those who are not directly linked to the project but can influence the activities of the
project through various ways. They include the Government, neighbors, pressure groups, political groups, local
councils, and the surrounding communities etc.
Identifying our stakeholders
Ideally our project manager should identify the stakeholders at the initial stages as it will cost hugely if we missed
out any key stakeholders during that period. As per PMI, it is an initiation process in communication knowledge
area.
Impact of the stakeholders on the project
It can be very costly if we ignore any of the stakeholder’s expectations and it can hugely impact the project
negatively like delay in deliveries. Suppose you need the resources for running the project as planned and if we
have managed the expectations of HR manager positively then we will surely get a soft support from our HR
manager because we’ve managed his expectations at the initial stage and the result can be vice-versa in case we
have not managed his expectations initially.
Furthermore, our project manager must manage the influence of all the stakeholders in relation to the project
requirements to ensure a required output. The project manager should take care of the interests of the
stakeholders balancing the requirements of the project.
Co-ordination with a geographically located team
If we are working with a team which is geographically placed then in that case ELECTOPOWER ENGINEERING
should be aware of what are the best ways of communication with that team so that we can work effectively. And
these things should be drafted at the initial stage of the project which should be communicated to them in
advance in the required language. In this way we can manage a team globally without any trouble. We can save
enormous time in our project through it.
Mode of effective communication with stakeholders
Our project manager should know the mode of communication and time of communication (in case of virtual
team) of all the identified stakeholders. A well-discussed format of report (MS-Word, MS-Excel, Power point) can
reduce the problem of communication a lot. So, our project manager should know the right format which the
stakeholders require for viewing progress report, work status, trend report, etc. A lot of controversies can be
reduced adopting these systems of reporting.
Advantages of managing stakeholder’s expectations
It is always plus for our project if we have successfully identified our internal and external stakeholders. Ideally,
we should involve our key stakeholders starting from contracts, SOW, creating project charter (if our project
manager is doing this) and he should involve in effective planning stages. As our project manager we should
monitor their expectations regularly so that we can align the project requirements with their requirements. In the
meantime, we have to maintain our milestone dates, quality planning, cost budgeting as a whole our
performance baselines balancing the stakeholder’s expectations. If we are managing all these – our project are all
right in every aspects. We can save time and money if we are managing the stakeholder’s expectations
effectively.

6. Disadvantages of not managing stakeholder’s expectations
Our project can hampered effectively if we missed out any key stakeholders and their expectations. The
stakeholders are known as the skeleton for any project. We cannot run our project smoothly without their
involvement. In any case if we have missed out key stakeholders, we have invited trouble for our project. They
can create a lot of unwanted trouble in our project. They can demand for an unacceptable scope change which
can impact on pricing, timing, and the schedule. So, smartly we should define scope involving the key
stakeholders so that we can monitor the scope effectively as per scope baseline. This is sure, if we have failed to
identify and manage the stakeholder’s our project will be over-budgeted and behind the schedule.
Managerial / Leadership style
In our company we use the Leadership style in a manner and approach of providing direction, implementing
plans, and motivating our employees or workforce. The three major styles of leadership we use in
ELECTOPOWER ENGINEERING are:
 Authoritarian or autocratic
 Participative or democratic
 Delegative or Free Reign
Although our Company leaders use all three styles, with one of them normally dominant, bad leaders tend to stick
with one style.
Authoritarian (autocratic)
I want both of you to. . .
This style is used when our leaders tell their employees what they want done and how they want it accomplished,
without getting the advice of their followers. Some of the appropriate conditions to use it is when you have all the
information to solve the problem, you are short on time, and your employees are well motivated.

7. Some people tend to think of this style as a vehicle for yelling, using demeaning language, and leading by threats
and abusing their power. This is not the authoritarian style, rather it is an abusive, unprofessional style called
“bossing people around.” It has no place in our leader's repertoire.
The authoritarian style should normally only be used on rare occasions. If we have the time and want to gain
more commitment and motivation our employees, then we use the participative style.
Participative (democratic)
Let's work together to solve this. . .
This style involves our leader including one or more employees in the decision making process (determining what
to do and how to do it). However, our leader maintains the final decision making authority. Using this style is not
a sign of weakness; rather it is a sign of strength that our employees will respect.
This is normally used when you have part of the information, and our employees have other parts. Even though
our leader is not expected to know everything this is why we employ knowledgeable and skillful employees.
Using this style is of mutual benefit to us and it allows them to become part of the team and allows us to make
better decisions.
Delegative (free reign)
You two take care of the problem while I go. . .
In this style, our leader allows the employees to make the decisions. However, our leader is still responsible for
the decisions that are made. This is used when employees are able to analyze the situation and determine what
needs to be done and how to do it. We cannot do everything! You must set priorities and delegate certain tasks.
This is not a style we use so that we can blame others when things go wrong, rather this is a style to be used
when we fully trust and have confidence in our people below our leader. However, we use it wisely!

8. Forces
Our leader uses all three styles, depending on what forces are involved between the followers, the leader, and
the situation. Some examples include:
o Using an authoritarian style on a new employee who is just learning the job. The leader is competent and
a good coach. The employee is motivated to learn a new skill. The situation is a new environment for the
employee.
o Using a participative style with a team of workers who know their job. The leader knows the problem, but
does not have all the information. The employees know their jobs and want to become part of the team.
o Using a delegative style with a worker who knows more about the job than you. You cannot do everything
and the employee needs to take ownership of her job! In addition, this allows you to be at other places,
doing other things.
o Using all three: Telling your employees that a procedure is not working correctly and a new one must be
established (authoritarian). Asking for their ideas and input on creating a new procedure (participative).
Delegating tasks in order to implement the new procedure (delegative).
Forces that influence the style to be used in our company include:
o How much time is available to produce a flex wire
o Relationships based on respect and trust.
o Managers has the information
o Our employees are trained and they know the task.
o They do surveys are introduce products in the market
o Internal conflicts.
o Stress levels.
o Type of task. Is it structured but sometimes complicated
o Established procedures such as OSHA and training plans are used.
Use of Consideration and Structure
Two other approaches that our leaders use are:
Consideration (employee orientation) our leaders are concerned about the human needs of their employees.
They build teamwork, help employees with their problems, and provide psychological support.
Structure (task orientation) our leaders believe that they get results by consistently keeping employees busy
and urging them to produce.
There is evidence that our leaders who are considerate in their leadership style are higher performers and are
more satisfied with their job

9. Also notice that consideration and structure are independent of each other, thus they should not be viewed on
opposite ends of a continuum. For example, our leader who becomes more considerate does not necessarily
mean that he has become less structured.
Keeping the above in mind, it seems that some picture paternalistic behavior as almost a barbaric way of getting
things accomplished. Yet, leadership is all about getting things done for the ELECTOPOWER ENGINEERING’s
organization. And in some situations, a paternalistic style of decision-making might be required; indeed, in our
cultures and individuals, it may also be expected by not only those in charge, but also the followers. However,
when paternalistic or autocratic styles are relied upon too much and the employees are ready and/or willing to
react to a more consultative type of leadership style, then it normally becomes quite damaging to the
performance of the organization.
Strategy Choices
INTERNAL STRATEGIC PROBLEMS IDENTIFICATION & ANALYSIS
VERTICAL INTEGRATION
Electropower Engineering is the only manufacturer to backward integrate using wire produced by Power Steels (a
sister company) to manufacture its electrode. Other manufacturers also buy their wire needs from Power Steels
or Metal Steel. But none of the manufacturers are end users and vice versa. The threat of backward integration
from the manufacturers can be ruled out because the demand is dispersed with none of the major buyers buying
quantities that are large enough to justify cost saving through backward integration. Moreover the welding
electrodes constitute only a minor portion of the costs of major manufacturers and fabricators and rather than
cutting down on the electrodes costs they try to cut down on more obviously inflated expenses.
Backward integration into flux manufacturing can be considered but the technology base is not available currently
and the capital expenditure required in chemical Engineering is usually forbiddingly high.
CERTIFICATION
The buyers seeking quality in the electrode industry look for electrodes that are certified for users in a particular
environment. There are institutions which certify that the product conforms to certain standards. The Lloyds
Bureau of Shipping and the American Bureau of Shipping are two such institutions which qualify electrodes. Most
institutional buyers require the manufacturers’ products to be certified.
EFFECTIVE MARKETING
The electrode market is segmented according to the need of the end user in terms of quality and price. The
manufacturers adopt different strategies while targeting the different segments. A leading company like BOC sells
its premium priced product directly to institutional users but when it comes to targeting the low end of the market
BOC relies on its wholesale network in 14 district cities to sell the low priced range of electrodes. Thus the
premium priced high quality product is distributed selectively and the standard product is distributed extensively.

10. This two-pronged approach towards targeting the market has proved successful for BOC and it has been able to
sustain sales due to institutional support even when sales in low end market were jeopardized by price cutting by
competitors. Thus, aggressive institutional selling and extensive reach ensure success in this market.
Electropower Engineering have only one sales office for its distribution, so the company try to enhance their
wholesale network into other cities.
FOREIGN COLLABORATION
The electrode manufacturing process is a moderately technical process. Manufacturers like PAWEL, BOC, Sencan,
Diamond and Electropower setup their projects with technical collaboration, because the technology is not
indigenous. This technical assistance ensures the quality which is required to substitute imports. Besides it
thwarts competition from those local manufacturers who are not technically assisted. BOC Turkey is a
multinational entity backed by British Oxygen U.K., PAWEL was setup under a license agreement with Welding
Engineering of Oerlikon, Switzerland. Shanghai and Diamond have Chinese collaboration
Electropower Engineerings will have the technical collaboration of Kyoto of Japan. Thus the major manufacturers
recognize the need for technical help in order to produce a quality product.
HIGH CAPACITY
In view of the rising demand of electrodes in the country the company with the greater capacity will not only
achieve economies of scale but also gain a greater share of market, making inroads into the already receding
imports.
The highest capacity lies ironically with Electropower Engineerings which has the lowest market share for the first
year, but we plan to increase it and be the market leader in five years.
With demand having outgrown the combined local capacity, the successful manufacturer is one who has the
foresight to expand now in order to reap the benefits from a growing market in the future.
MANAGEMENT POLICIES
Product Definition & Product Features
Electropower Engineering company management has done imperative work by diversifying the entire
business portfolio in a manner that will facilitate the organization to maximize its profitability margin. The
management needs to look into all its raw materials and determine the manner through which substantial goals
and targets will be realized upon purchasing or obtaining all the raw materials. The organization main raw
materials are Steel wire rod, Brass wire rod, Compound of chemicals (Flux) and coating agents and Potassium
and soda silicates. Product is one of the integral aspects within any organization that has motive of maximizing
profitability margin.
Electropower Engineering company should tap in ideas to articulate on ways and approaches through
which it will be in capacity to accomplish all goals and targets within the shortest time possible. For instance,
product policy in any business set up is always concerned with issues relating to design and how marketing
performance can be diversified. The organization should be thus in capacity to product policy complies with
design, branding aspects and quality. This approach would be of much importance given the fact that the
company has been venturing in production of many products that conforms to international standards. In many
world electronics markets, many issues and aspect required to determine the manner through which market
diversification will be arranged or equipped. In every market product features forms the basis through which an
organization is able to continue maximizing all its returns. It is through the same approach that Electropower
Engineering Company will be able to maximize its customer’s base through ensuring that all planned policies that
relates with the product have been realized within the appropriate time frame.
Pricing Policies
Pricing Principles- Competition, Cost, Value
Electropower Engineering Company has also perfected in the realms of pricing policies. The
management has been in capacity to look into obstacles that have been limiting the organization towards
realizing all its goals to a parameter whereby it maximizes profitability level. There are three key and integral
approaches within pricing that Electropower Engineering Company should always regulate and maintain in an
effective area. These are the value, cost and completion that are being witnessed in the product realms. The

11. organization management should be in sound capacity to ensure that all set goals and targets are compatible
with all the market plans. This is the guiding principle through which the organization will be in capacity to foster
considerable completion to all its fierce market rivals. Many of these measures are wholly concerned with the
manner through which the organization will be in reasonable capacity to continue maximizing its market
approaches.
Electropower Engineering Company should also ensure that its entire workforce is in capacity of
producing quality electrodes that comply with the value which is all acceptable in the entire market. The
organization should thus target all potential markets whereby it has a tendency of encountering imperative
competitive position of its products. For instance, the organization Arc welding Electrodes have been an
imperative to manufacture products which have been used in all areas of engineering. Its steel fabrication has
been used to structure fences and grills. It is also through the organization diversification of producing the
products that has led the organization into promoting the growth of Auto industry in Turkey .
Promotion Policies
Corporate Communication, Advertising, Sales Promotion
Electropower Engineering company management should also be in imperative capacity to ensure that it
is able to maximize all the plans in the right approach. In fact, it is through this approach that the organization
has been in capacity to facilitate export potential all over the market place. Most of the markets that the
organization has tapped are concentrated in Central Asia, European countries, Middle East and Africa. This has
been one of the most implemental areas whereby promotion policy of the organization has been witnessed as
fruitful in both short and long term.
All Electropower Engineering company promotion policies should be organized in a manner which
enhances business continuity to unenforceable future. For instance, the recent entry of new plants in the market
is a wakeup call for the organization management to expand its promotion tactics. Electropower Engineering
organization management should also be in capacity to review the three companies which are New light House,
Sana Welding and Diamond Weld Electrodes on how they are carrying their businesses. It is through this
approach that the management will be able to choose the best strategies of improving its promotion mechanism
Distribution Channel Policies (Channels to Be Used for Distribution)
Electropower Engineering Company has been performing well within the parameters of production since
its launch in Turkey. One of the key factors that have enabled the organization to continue maximizing its goals
and targets is the fact that it has been able to coin imperative distribution channels in its entire occupied market
approach. The products that have continued to facilitate its expansion are General purpose Mild Steel (GPMS),
Special Electrodes (Maintenance, Stainless steel ,Cast Iron and Bronze) and Special purpose mild steel (SPMS).
The management should plan and also hypothesize effectively on the cost of its three basic materials
which are the Bonding glue, Flux and Wire. This will enable the promotion team to apply the best policy that will
be in situation of maximizing the profitability margin in the market. Promotion is one of the effective policies
within any management of an organization. It is through it that the organization is able to rationalize all its goals
and targets in a manner that is imperative. The management should also look into the various aspects that
facilitate its diversification in the market place. According to statistics the largest operating cost within the entire
industry is the raw materials which have been proven to be at a level of 70%.Thus, in distribution of products the
team or department responsible with this entire role should check in ways through which all intended objectives
will be achieved.
Human Resources Policies
Human resource policies are under another area which is hugely important especially in parameters of
realizing all inclusive goals of Electropower Engineering Company. It is through this approach that all imperative
goals and targets will be realized. The organization should forge a powerful human resource department which
will be in capacity to ensure that recruitment, Promotion, Training, Empowerment and Performance appraisal are
all well put under consideration.
Electropower Engineering Company should come out clear as an equal opportunity employer. It is
through this channel that the management will be in capacity to carry out imperative recruitment, training and
promotion strategies. This is one of the key and fundamental approaches which will position the organization in a
position to realize all its articulated goals and targets in the right parameter.
Financing Policies (Sources & Uses of Funds)
For every organization to prosper in all levels of its operation, long lasting imperative plan should be
stressed within the areas of financing. In this area Electropower Engineering should be able to locate all the
necessary ways of financing its business portfolio. In circumstances where there is insufficient of sources of funds
all business operations cannot be accomplished as planned. Thus, it is through this approach that the
organization is able to perfect in all the parameters. The management of the company should review all the
methods that are important in the areas of achieving goals and targets in the right approach through ensuring
that financial parameters have been consolidated. This is important in this area where competition in the market

12. has increased. It can source its funds from leading banks .This will enable the organization to foster imperative
diversification in all areas concerned.
Quality Management Policies (Quality system Principles & Management)
Quality management policies are vital towards ensuring that Electropower Engineering has built a
considerable name in the entire market. It is through this approach that the organization will be able to maximize
and at the same time comply with all the demands of the markets. Quality system and Management facilitates an
organization to coin a sound and solid name with its customers. This is because all issues and concerns of the
clients are always looked into and solved accordingly.
Environmental Policies
Electropower Engineering management should also focus on ways and approaches that will steer the
organization forward towards realization of all solid and quality goals in the market place. Environmental policies
are integral to this organization given the fact it experiences massive emissions of byproduct substances in the
environment. Thus, the management should look into ways on ho w to mitigate the problems and in result
comply with all the market factors that are within the environmental perspective.
Social Responsibility Policies and Code of Ethics
An organization such as Electropower Engineering which deals with large production of products should
always look on ways through which it will be able to maximize its entire profitability margin. Due to its high level
of pollution the organization should also be much vigilant on issues pertaining to social responsibilities policies. In
social responsibility Electropower Engineering should focus on how to fund various kinds of projects in the
society. In this approach or initiative it will have been able to handle all the issues within the parameters of the
customers, suppliers, employees, society and all other areas that touch social responsibility policies. This
approach will have enabled the organization to coin a reputable name with all its stakeholders in the market.
Customer Relationship Management Policies
Customer management policies are important in the organization accomplishment of its core market
objectives. It is through customers that the organization is able to sustain itself in the market. In times like now
that there is an entry of three other organizations in the market Electropower Engineering should find the ways
out on how it can be in capacity to relate well with its entire customers.
GROWTH STRATEGY
Ideal Case
For this we may assume that the tariffs on the finished good will remain at the current levels and the duty on the
import of wire and flux is withdrawn. The wire constitutes almost 70 % of the weight of the electrode in GPMS
electrode and the flux constitutes about 30 % of the weight, whereas in terms of value they contribute almost
equally to the cost of goods sold. Currently the ITP value of wire rod is STG. 210 per ton (Rs. 29,400 approx.). So
the decrease in duty from 65 % to zero would translate into a decrease in the price of wire of about 37 %.
Currently all wire needs are bought locally so this measure would encourage the import of wire from abroad as it
will results in cost savings of nearly Rs. 15,000 per ton. Moreover the removal of duty from the Rutile Sand which
is the major constituent of the flux will result in the prices of flux being lowered by almost 12 %. Together the
two will decrease the cost of goods sold by almost 25 % thus raising the current margins by almost 15 %
because the COGS is approximately 70 % of Sales.
Likely Case
For this case we may assume that the current situation holds true. The duty on the flux and finished good would
remain at the current levels and the slashed duty on the wire rod will encourage imports of the wire which given
the current ITP value of STG. 210 per ton will cost Rs. 12,600 per ton after a duty of 20 % and other charges of
about 8 %. This would mean a decrease in the price of wire of about 26 % which translates into a decrease in
COGS of about 13 %. The margin in this case will improve by 6 - 7 % but not as substantially as in the ideal case
because the flux would still be imported under the previous duty structure.

13. Organizational Chart

14. COMPETITOR ANALYSIS
The competition in the electrode industry is intense. There are 11 different local manufacturers. The
major manufacturers along with their locations and their approximate capacity are listed ahead.
Name of Manufacturer Location Capacity (Tons / Year)
BOC (Formerly Pak Oxygen) Izmit 5,500
PAWEL Izmit 3,000 - 3,500
Riza Engineering Industries Izmit 4,500 - 5,000
Electropower Engineering Istanbul 7,000
Diamond Weld Electrodes Kayseri 4,500 - 5,000
Sencan Industries Izmit 3,000 - 3,500
New Light House Istanbul 2,000
Sena Welding Ankara 1,000
Total 32,500 Ton per year.
Three other manufacturers,
 Premier Engineering in Izmit,
 Castle Engineering in Gebze,
PERFORMANCE MEASURES
The first year expected market shares of the companies are estimated as below:
Company Share of Market
Riza Engineering Industries 18 %
Electropower Engineering 8%
Diamond Weld Electrodes 20 %
Sencan Industries 5%
New Light House 25 %
Sena Welding 16 %
Others 8%
The factors leading to periodical and year to year variation are trying to explain as follows;
(1) SHORTAGE OF RAW MATERIAL
Periodical shortages of Raw Material (especially Steel Wire Rod) with the result that goods are not
available in sufficient quantities to cater for the need of dealers.
Reasons best known to the management.
(2) QUALITATIVE DISTURBANCES
Complaints received from different quarters about:
 Crack in the Welding parts.
 Bad irritation smoke.
 Color change (flux).
 Center out.
 Automatic flux shedding.

15. (3) INTERRUPTION OF PRODUCTION
Constant interruption and production and non dispatches have adversely affected the business results
in deterioration of goodwill of the company as well, which was earned by the company with great
labor and efforts during the last year.
(4) SUB - STANDARD PACKAGING
Proper attention and due care is not being given for packing material (Cartons) it tears, during
handling and packet scatter here and there. The strapping matching was almost out of order and it
was in working position.
The strips were always loose; because of this dealers were losing interest in selling our Electrodes.
(5) COMPLIANCE OF DISPATCH ORDER
The compliance of dispatch order is not being made in accordance with the demand of dealers, but in
generally met as per stock available at that moment. This procedure does not satisfy the parties and
needs to be made as per orders.
The company’s low pace of fulfillment is so much discouraged the parties that they are reluctant to
place fresh orders and hesitating to give further advances but are also urging for return of their
advances.
CONTROL TOOLS THAT WILL BE USED
After we have spent our money, financial statements will reflect how much was spent, how it was
spent, and what it obtained. The managers should use financial statements, such as an income
statement or balance sheet, to monitor the progress of programs and plans.We should closely look at
specific figures that are liquidity ratios, profitability ratios, debt ratios, and activity ratios.
The other control tool will be budget. We will use flexible budgeting in which managers adjusts the
static budget for the actual level of output.
Other than that, we can apply marketing statistics which measure profitability, activity, market shares
and sales quotas.
To make sure that we have efficient and effective human resources, we will include
performance appraisals, disciplinary programs, observations, and training and development
assessments.
Last but not the least, Electropower Engineering Group has some confidential and sensitive
information that we don't want to become general knowledge. Controlling access to computer
databases is the key to this area.
ANNUAL REPORT CONTENTS
1) PROJECTED BALANCE SHEET
2) PROJECTED PROFIT & LOSS ACCOUNT
3) PROJECTED CASH FLOW STATEMENT
4) ANALYSIS OF INCREASE / (DECREASE) IN CURRENT ITEMS OTHER THAN CASH
5) NOTES TO FINANCIAL PROJECTIONS
6) DEPRECIATION SCHEDULE YEAR 1
7) DEBTS SERVICE COVERAGE RATIO
8) FEED BACK & SURVEY REPORT
9) TEST REPORT OF WELDING ELECTRODE
10) MEETING WITH DEALERS