Study Of Ibrahim Group 131x4a

Study of Ibrahim group “Business communication”

3

3

BUSINESS COMMUNICATION REPORT ON IBRAHIM GROUP

BY KAMRAN SAIF F07MD035

Institute of Business and Information Technology University of the Punjab Lahore

3

ACKNOWLEDGMENT All acclamation to Allah who has empowered and enabled us to accomplish the task successfully First of all we would like to thank our Allah Almighty who really helps us in every problem during the project. We would like to express our sincere and humble gratitude to Almighty who’s Blessings, help and guidance has been a real source of all our achievements in our life. We would like to it that we completed this project due to parents who pray for our success. Last but not the least our team efforts, , cooperation and encouragement showed by each member in the group with each other.

3

DEDICATION Our PROJECT is dedicated to our beloved Parents, teachers, brothers, sisters and all of our well wishers

3

EXECUTIVE SUMMARY Today the world is defined by the term 'Information Age.' All businesses, both large and small, require effective and efficient business communication solutions in order to continuously meet their customer expectations and attain a competitive advantage, and therefore are successful. Whether a company is large or small it is realized that, the right amount of financing, materials, talent, and experience are not enough to succeed without a good communication system in place that enables smooth transaction sealing. Communications is at the heart of regional and international integration. The “IBRAHIM FIBER LIMITED” started with a cloth trading business in the industrial city of Faisalabad. Late Haji Sheikh Mohammad Ibrahim, founder of the Ibrahim Group. The Mission Statement Is “To build the company on the sound financial footing with better productivity, excellence in quality and improved efficiency at lower operating costs by utilizing blend of state of the art technologies”. Ibrahim Group acquired Allied Bank Limited, one of the five largest commercial banks in Pakistan under the scheme of re-construction of the Bank’s capital undertaken by The State Bank of Pakistan. The objective of IFL is profit earning & growth through effective communication. IBRAHIM FIBER LIMITED defines communication by focusing on three objectives A (Attention), B (Brief), C (Clarity). Business communication channel mainly based on E-mail & have in-house E-Mails system that is directly connected with Karachi & Lahore. This E-mail system is design by their I.T department. The decision making approach is both centralized & decentralized. They communicate externally using medium such as conferencing, website, & market mobilization. Ibrahim IT department is very strong. Ibrahim using following technologies to communicate such as Oracle, Microsoft, HP, Siemens and Cisco Provides BlackBerry mobiles phone to managers for communication Ibrahim build strong culture & discipline character. Have Friendly environment within organization & professional outlook that shows their good repute & image. Ibrahim industry has strong interdepartmental communication. In Future Ibrahim Fiber Limited enhance their communication patterns & implement IT technology to enhance effective communication.

INTRODUCTION: 3

Ibrahim Group at a Glance: The group started with a cloth trading business in the industrial city of Faisalabad. Late Haji Sheikh Mohammad Ibrahim, founder of the Ibrahim Group, settled in Faisalabad after partition of India in 1947 and re-established his ancestral business of cloth trading by the name of “Ibrahim Agencies”. What is known in business today as Ibrahim Group with diversified business interests from Spinning to PSF, Financial Institutions to Banking and Energy, started off as a mere cloth trading agency just half a century ago. It was middle of the fifties, when Sheikh Mukhtar Ahmed, present Chairman of the group, ed in this family business. It was then, that he took initiative to integrate the business vertically upwards adding up yarn trading as an additional line of business. Turning out to be a milestone in the future progress, it did not take long before the group was widely reputed and respected in marketing of cotton and blended yarns. Backed by this goodwill and experience in marketing, in 1980, manufacturing of own blended yarn was initiated by establishment of Ibrahim Textile Mills Limited. With long term considerations and a simple principle of “no compromise on quality “two more textile spinning companies; A.A. Textiles Limited in 1982 and Zainab Textile Mills Limited in 1987 were established. A power generation Company Ibrahim Energy Limited was incorporated in 1991 to improve the efficiency of the existing manufacturing companies. All these manufacturing companies have now been merged into Ibrahim Fibers’ Limited. The Group diversified into the financial services by floating First Ibrahim Modaraba and also established a leasing company; Ibrahim Leasing Limited. Subsequently First Ibrahim Modaraba was merged into Ibrahim Leasing Ibrahim fiber limited Page 14Business Communication Limited. Upon declaration of the privatization policy by Government of Pakistan, Ibrahim Group together with other leading groups participated in the bidding to acquire controlling shares of Muslim Commercial Bank Limited. Under the scheme of reconstruction proposed by State Bank of Pakistan, Consortium of Ibrahim Leasing Limited, Ibrahim Group and its sponsors acquired more than 75% of the shareholding of Allied Bank of Pakistan Limited. Management and control of the Bank was handed over to Ibrahim Group on August 19, 2004. At present Ibrahim Group is holding more than 80% shareholding of this bank. One of the top five banks of Pakistan, Allied Bank has more than 742 branches across the country with 7,139 employees and financial assets of Pak Rupees 234 billion. The Group plans to inject its own dynamism and energy in the bank to turn it 3

into a premier financial institution of the country. After the acquisition of the bank Ibrahim Leasing Limited has been merged into Allied Bank limited. The strength of the group today stands manifold with entrepreneurial skills and visionary leadership of Sheikh Mukhtar Ahmed added with fresh concepts and professional skills of Mohammad Naeem Mukhtar who has done his MBA from the University of Wales, Cardiff, UK. and Mohammad Waseem Mukhtar who has done his Bachelor in Computer Science and Masters in Total Quality Management (TQM) from the University of Glamorgan, Wales, UK .

3

Vision To be a Sustainable, growth oriented company and achieve scale to remain competitive, in the barrier free global economy.

Mission To build the company on the sound financial footing with better productivity, excellence in quality and improved efficiency at lower operating costs by utilizing blend of state of the art technologies. To accomplish excellent results through increased earnings this can benefit all the stakeholders. To be a responsible employer and to take care of the employees in their career planning and reward them according to their abilities and performance To fulfill general obligations towards the society, being a good corporate citizen

Ibrahim Fiber Limited Businesses 3

1. Polyester Immer AG ; market leaders in the Polyester Polymer capacities with nearly 30% share in the world market has supplied the engineering and technology for Ibrahim Fibres Limited Polyester Plant and has also guaranteed not only the designed capacity but the quality of finished goods to be in compliance with world standards.

2. Textile Spun Yarn Division of Ibrahim Fibers Limited consists of three projects; TP1 (Ibrahim Textiles) TP2 (AA Textiles) TP3 (Zainab Textiles) All these projects were operating as independent public limited companies and were listed on stock exchanges in Pakistan till September 2000 before their merger into Ibrahim Fibers Limited. These projects are equipped with Real Time Ring Monitoring System (RTRMS), Uster Ring Expert, Spin Vision, and Coner Pilot for online monitoring and analyzing to facilitate production and efficiency while maintaining quality parameters. Moreover, auto-doffing system has been installed on the spinning and winding machines to automate the manufacturing process. To maintain and to keep an edge we keep on adding latest machinery and technical know-how.

3. Power generation Ibrahim Energy Limited was incorporated as a Private Limited Company on 2nd June, 1991, converted into a Public Limited Company on Feb 26,1992 and the power generation started from January 1994. Ibrahim Energy now merged into Ibrahim Fibers Limited. Power generating capacity of the project is 31.8 MW based on heavy fuel oil. The plant and machinery of the project comprises of 6 furnace oil generating sets, each having a capacity to produce 5.3 MW, supplied by Nigata Engineering Company, Japan.

3

4. Financial services Allied Bank The consortium of Ibrahim Leasing Limited and Ibrahim Group assumed the control of the Allied bank in August 2004 by injecting Rs 14.2 billion into the capital of Allied bank for acquiring 325 million additional shares.

Milestones Ibrahim fiber limited Page 17Business Communication

2008 Ibrahim Group acquired Allied Bank Limited, one of the five largest commercial banks in Pakistan under the scheme of re-construction of the Bank’s capital undertaken by The State Bank of Pakistan. Ibrahim Group injected equity of PKR. 14.2 billion Into the Bank against 325 million shares of the Bank. Major Modernization & Replacement of the Back process equipment of Textile Plant 1 (Ibrahim Textile Mills Ltd.)

2006 The expansion unit of Polyester plant started commercial production thus increasing the PSF production capacity from 70,000 tons per annum to 208,600 tons per annum.

2004 Four Group companies, Ibrahim Textile Mills Ltd., A.A Textiles Ltd., Zainab Textile Mills Ld. and Ibrahim Energy Limited were merged into Ibrahim Fibers Limited.

2000

3

Commissioning of the Polyester Staple Fiber plant having an annual production capacity of 70,000 tons per annum

1996 The Group commenced the start-up of Polyester Staple Fiber Manufacturing Plant having a capacity to produce 70,000 tons of PSF per annum. The Group established Ibrahim Energy Limited, a 31.8 MW power generation plant.

1990 The Group established the third Textile spinning plant, Zainab Textile Mills Limited, having a capacity of 38,400 spindles.

1984 The Group established the second Textile spinning plant, A.A Textiles Limited, presently having a capacity of 40,128 spindles.

1980 The Group established Ibrahim Textile Mills Limited, a Textile spinning plant presently having a capacity of 58,080 spindles.

Chairman's Message 3

Chairman communicates his message “By carrying out business activities with customer centric focus and by attaining the confidence of our shareholders, customers and society, Ibrahim Fibers aims to be a Company making a significant contribution to the national economy. We will continue to strive for excellence in all spheres of our activities and to manufacture high quality products through the use of advanced technology in our business operations, be an attractive organization to work with and a reliable business partner.” Mohammad Naeem Mukhtar Chairman

INTRODUCTION TO COMMUNICATION In this Field Study Report, we have discussed what is communication, channels of communication, types of communication in an organization, interdepartmental communication in an organization, policies regarding communication & decision making approach etc..For this purpose we have visited and studied the functions relating to our topic of “IBRAHIM FIBER LIMITED”. IFL Stands for

3

 I(Individually & collectively)  F(friendly & caring)  L(life styles with leading qualities) That communicates the IFL Good Image & Repute both internally & externally

Communication Communication may be defined as the transfer of information from sender to receiver, with the information being understood by the receiver. The communication function is the means to unify an organized activity, through transfer of information from one individual to another, or from one system to another. According to IBRAHIM FIBER LIMITED they define communication by focusing on three objectives  A = Attention  B= Brief  C= Clarity

3

Importance of Communication Communications is the means by which people are linked together in an organization to achieve a common purpose. Indeed group activity is impossible without communication because coordination and change would not be effected. Sociologists and psychologists have also realized the importance of communication in interpersonal relationships, and have focused their study on communication networks. IFL give more importance to communication because they emphasize On Attention, Brief & clarity of communication & IFL retain customers through proper communication.

Purpose of Communication The purpose of communication in an enterprise is to effect change. In an organization, there can be two types of communication, i.e. internal and external. Internal communication means communication within the organization, whereas external communication is the communication with the outside environment. The following diagram depicts the purpose and function of communication in an IBRAHIM FIBER LIMITED organization.

3

As can be seen from the above diagram, the purposes of internal communication in an IFL are as follows:

Internal communication Inside communication means giving and receiving information by all hierarchical levels. It includes vertical communication covering downward communication, upward communication, horizontal communication and diagonal communication. It includes communication flowing at any intermediate level as well as at operating level, or top management level, because internal communication is indeed required by all who work together in an organization to accomplish common goal

3

Requirements for Effective Internal Communication  Internal communication must be recognized as an essential tool of management. It is a way

to achieve corporate objectives, build teamwork, and motive: It can make managers become better leaders. This requirement recognizes that, employee attitudes and resulting performance are improved by effective communication.  Great emphasis must be placed on communication and measurement Communication

cannot be left to chance. There must be a plan who communicates that how to whom, for what purpose and to what effect.  Top management must establish a communication climate other divisions and departments

will reflect this climate  A long‐term investment in professional talent and communication programming must be

made Programming and qualified people cost money, but it is well spent.

Written communication setup of Ibrahim Fiber Limited Written messages also take many forms. At one extreme are the scribbled notes and at the other are formal reports. Regardless of the form, written messages have one big advantage they let us to plan and control the message. The other advantages of written communication are that it can provide records, references, and legal defenses when needed. Written messages can be transmitted to a large audience through the mail or through mass media like newspapers etc. Written communication is also useful in maintaining uniformity in policies and procedures. However, disadvantages of written communication are that the is not immediate, effective messages are difficult to produce if the sender is not sufficiently skilled, and the written communication may create heaps of paper which may become difficult to manage. “IFL strongly focuses on written communication” In the following about different common forms of written communication are explained

3

LETTERS The medium used for written messages to persons outside the organization is the business letters. Business letters are substitute of personal visits and paper representatives of the writer. Letters are written for many purposes such as appointment letters, promotion letters, termination letters, Etc. Letters are also used for downward communication. Letters are written to the customers as well as to other external agencies like suppliers, taxation authorities, governmental regulatory bodies etc.

PARTS OF A BUSINESS LETTER

Memorandums Memorandums are in contrast to the letters which are used for routine in day-to-day exchange of information within the organization and also for downward communication. This medium is basically intended to communicate to employees, the rules, regulations, and policies of the company.

OFFICE MEMORANDA Office memoranda are also used for downward communication. This medium is basically intended to communicate to employees, the rules, regulations, and policies of the company as well as to explain something.

3

External communication External communication is equally important as internal communication to provide a link between the employees and the shareholders and other third parties. As a matter of fact, external communication is considered as lifeblood of the modern business. External communication can be arranged by oral or verbal communication as well as through written media. Telex, television, telephone, tele‐printer, transmitters, STD, ISD, and other modern sophisticated communication technologies can be used for external communication. Written media like letters, circulars, notices, legal notices, newspapers, magazines, manuals, periodical reports, pamphlets etc., are also used towards external communication. External correspondence is mostly in written form except in extraordinary circumstances resorting to telecommunication services. It is utmost necessary to build attitudes, develop rapport, create confidence, win goodwill, morale and influence, mutual understanding by keeping them well informed. There are many broad areas outside the organization about which information should be communicated

Internal communication in IFL Internal communication of IBRAHIM FIBER LIMITED is mainly downward, but upward and crosswise communication is also encouraged.  Establish and disseminate goals of the organization.  To develop plans for achievement of these goals.  To organize human and other resources effectively and efficiently.  To select, develop, and apprise of the organization.  To control all activities.

External communication in IFL External communication helps the managers of IFL to become aware of:  The needs of customers. 3

 The availability of suppliers.  The claims of stockholders.  The regulations of government  The concerns of the communities

Channels of communication in IFL

Internal channels of IFL  E-mails  Faxes  Letters  Reports  Memo

3

 Telephones  Conferencing  Meetings Following are the channels that IFL use to communication within the organization. The most important channel they focus to communicate is “E-MAILS”. All work is done through EMails.IFL have in-house E-Mails system that is directly connected with Karachi & Lahore. This E-mail system is design by their I.T department who is responsible for controlling it & gives access to each & every person within the organization. They communicate on daily basis internally & externally both to Communication more clearly & correctly. And the other work is done by using different channels that are letters, reports etc. Different types of reports are prepared on suggestions or recommendations on personnel, activity execution time and plans for overcoming the difficulties. Reports are made on daily basis & weekly basis. Each & every department of IFL is responsible for submitting their report so that information is update on daily basis. And communication will be more effective & efficient. Minutes are prepared of every meeting for the purpose to implementation of the decision and record.

External channels of IFL  Toll free number/U.A.N  Video conferencing  Audio conferencing  Web-site(static)  Newspaper  Marketing mobilization  letters

3

These are the channels that IFL uses to communicate with external environment that includes customer, suppliers, stockholders & government etc IFL communicate with their customers in a better way & correctly to retain their customers. Their objective is communicates clearly with customers. For this they provide facilities to their customer such as a TOLL free Number through this customer gets information regarding their products & services or anything they want to know. By communicating in that ways IFL gain the loyalty of customers. Even no little confusion occur in communication because while communicating with customer or making any contract they confirm it many times. So less chances of miss-understanding occur. Letters are written to the customers as well as to other external agencies like suppliers, taxation authorities, governmental regulatory bodies etc

Decision making approach Two types of decision making approach that are  Centralized  De-centralized

Centralized: The degree to which decision-making is concentrated at a single point in the organizations. Organizations in which top managers make all the decisions and lower-level employees simply carry out those orders. IBRAHIM FIBER LIMITED follow the “Centralized structure” & all work in controlled and checked by C.E.O He is responsible for major decision making.

De-centralized: Organizations in which decision-making is pushed down to the managers who are closest to the action, Employee Empowerment by increasing the decision-making authority (power) of employees. IBRAHIM FIBER LIMITED also follows the de-centralized structure to get strong from employees.IFL communicate with their employees to get and their 3

suggestions regarding company policies & procedures. This communication leads to high growth and profit of the organization. That shows their good management teamwork because IFL can’t take things guaranteed.

IFL Technology for communication During the last decade, digital technology has changed the world in profound and exciting ways. Today we communicate instantly and no one questions the competitive advantages that come when we can communicate and collaborate instantly with customers and business partners around the world. Global supply chains enable businesses to manufacture products and move them to market with incredible speed and efficiency. Mobile devices ensure that we are productive no matter where we are. During the next decade, the world's information will be digitized. As organizations strive for increased profitability and growth, the pressure is on to provide faster, better information to ever-increasing numbers of business s, analysts and decision makers. Everyone wants the ability to reach information they can trust, when they need it, for effective decision-making. Use of Information Technology based solutions fulfills these requirements effectively. The end result is dramatic improvements in collaboration between s, applications, and technology components, generating significant value for any business and creating competitive advantage.

Technologies for communication At Ibrahim Fibers Limited, we have adopted state of the art IT solutions available from various giant in the Information Technology industry like,  Oracle  Microsoft  IBM  DELL

3

 HP  Siemens and Cisco That shows their strong communication with the organization as well as outside the organization.IFL also provides “BLACK BERRY” mobile phones to their employees for communication and for business purpose.IFL defined their HOTLINES Codes for different cities to communicate for Karachi the code is 4200 & For Lahore the code is 5200.

Use of Jargons They also used Official Abbreviation or jargons to communicate in their organization For Example  JA (Javaid Ashraf)  WP (Waseem Pasha)  AY (Asim Yaseen) B/c in this way IFL can deliver the specific message to the specific person easily.

Professional & HR development At Ibrahim Group, strength is derived from a firm belief in the potential of each individual associated with the Company. Every department is managed by highly qualified team of professionals with vast experience in their respective fields. Professional development courses and training programs are frequently undertaken to groom every member of the team. The standards prescribed by international institutions for the quality of management systems, working conditions, hygiene and environment at the workplace are strictly adhered to.IFL communicate with their employees through HRM department that is responsible for hiring, recruitment,

3

appraising, and performance management & give employee training. Through communication employee will motivated both towards organization & towards their work.

IFL Communicate towards community care Ibrahim Fibers Limited is committed to constantly strive for higher standards in health, safety and environment. The Company strictly follows the safety standards at all levels and training is provided under the supervision of qualified manager and various sessions are being held to create safety awareness. Environmental issues have raised concern all over the world due to the rapid industrialization and drastic increase in population. In this regard National Environmental Quality Standards as laid down by Pakistan Environmental Protection Ordinance 1997 are being strictly followed. The horticulture department, under the supervision of a qualified horticulturist, has been established and every year a plantation campaign is launched by the Company at all its locations to provide healthy and clean environment to all personnel. Arrangements have been made to provide pure mineralized water, high standard foods and medical care for all the employees working at the plant sites. As part of the organizational culture of IFL, the Company fulfils its social responsibilities and apart from monetary contributions to educational institutions and hospitals the Directors of the Company are directly participating in the management of educational institutions and hospitals.

Formal & informal communication Ibrahim fiber limited communicates in both ways formally & informally. They have friendly environment in their company so that each and every employee feel free to share their ideas, opinions etc.

Interdepartmental communication 3

IFL interdepartmental communication is very strong and effective because they communicate on daily basis and updated data, exchange information as well. For example in IBRAHIM FIBER LIMITED the Marketing department communicates with other department. The figure is given below

Inter-

cultural communication within IFL

IFL communicate in better way by following the culture. IFL emphasis on strong & effective communication within organization that shows their strong culture IBRAHIM FIBER LIMITED  Focuses on professional life style  Emphasis on effective style of communication  Focus on manners  Proper & professional dressing  Style of offices shows strong management  Strong culture  Use Good approach for communication  Follow moral values & ethics  Attentive  Focus on individual character or behavior  Build discipline character

Analysis of the organization in the light of communication

3

Strengths:  Business communication channel mainly based on E-MAILS  Friendly environment  Strong communication channels  Strong IT system for communication  less chances of error in communication

Weaknesses:  Lack or customer awareness through advertising  Technical personnel have less command on effective business writing.

Recommendation Strategies for Improvements After having analyzed the deficiencies of IBRAHIM FIBER LIMITED we would now recommend strategies to overcome these weaknesses in the following lines:

Repetition: Repetition of a message, such as an ment, creates greater impact on the recipients. This technique should be employed. It is important to note, however, that repetition should be only where it is necessary.

Effective business writing: While writing letters or other any type of written communication to others especially to executives of organizations, be sure about the accuracy of figures, facts and words of the correspondence.

Training: 3

Imparting of such training would greatly improve the communication skills of the engineers on technical matters.

Conclusion:  Developing a communication strategy and its implementation in an efficient and effective manner is quite beneficial for an organization.  Need to be transparent about your goals and values.  Consistency has to be maintained.  Need to adopt comprehensive & persuasive methods for that.  All this needs a long term focus.

Key learning outcomes  Able to write all business correspondence  Able to demonstrate how important information technology in business communication today  Have skill required in telephone communication  Ability to plan a group presentation  Able to design relevant visual aid for a presentation  Build confidence  Gain more knowledge about effective communication  Ability to communicate in effective way by using body language

3

 Enhance the knowledge about how organization communicate with internal and external environment effectively  Able to write a C.V  Able to explain the difference b/w formal & informal communication  Learn to enhance personality  Capable to become a good listener as well as good speaker  Capable to organize immense of work  Improve communication skills  Further enhance and develop written communication strategies  Acquire and incorporate relevant vocabulary in both written as well as oral tasks and activities  Interact and participate confidently in group based tasks, discussions and presentations.  Use of an original vocabulary  Clarity and accuracy of the summary  Able to prepare ourselves for an interviews

3