This project report has been developed to enlist problems that a Lucky Cement has at the moment. The recommendation for the resolution of problems have been suggested to Lucky Cement Management. My this report has helped Lucky Cement to Strengthen the Dreams

1. TTeerrmm RReeppoorrtt:: PPrriinncciipplleess ooff MMaannaaggeemmeenntt
TTiittllee:: LLuucckkyy CCeemmeenntt,, SSttrreennggtthheenn tthhee DDrreeaammss
Contact Person: Sohail Anjum
Name: Sajjad HussainSayed Class& Section: MBA-III (A)
Contact Person Information:
Marketing Manager
Karachi Headquarter
Email: sohailajnum@lucky-cement.com

2. LLLUUUCCCKKKYYY CCCEEEMMMEEENNNTTT LLLIIIMMMIIITTTEEEDDD (((LLLCCCLLL)))
Vision:
We envision being the leader of the cement industry in Pakistan, identifying and
capitalizing on new opportunities in the global market, contributing towards industrial
progress and sustainable future, while being responsible corporate citizens.
Mission:
Our mission to premium manufacturer by building a professional organization, having
state-of-the-art technology, identifying new prospects to teach globally and maintain service
and quality standards to cater to international construction needs with an environment-
friendly approach
Products:
 Lucky Cement
 Lucky Star
 Lucky Gold
 Chairman
Primary Products
 Lucky Sulpahte resistant cement (SRC)
 Ordinary Portland Coment (OPC)
Core Values:
Ethics and Integrity
(Prestige, honesty, uprightness and Integrity)
Excellence
(Benchmark practices, continuous improvements, efficient and effective
performance)
Innovation
(Creative solution, modernization, first-movers advantage, setting trends)
Customer focused
(Quality and consistency, Commitment, Customer satisfaction, Fair practices)
Social Responsibility
(Sustainable development, philanthropy, community development, environmental
conscious)
Entrepreneurship
(Sense of ownership, loyalty, identifying and grabbing opportunities,
foresightedness, proactive approach, value creation & addition, Business oriented)

3. HHiissttoorryy aanndd PPrrooffiillee::
Sponsored by well Known “Yunus Brothers Group” (YB Group) – One of the largest
export houses of Pakistan, Lucky Cement Limited currently have the capacity of producing
25,000 tons per day of dry process cement.
Lucky Cement Limited came into existence in 1996. Lucky Cement Limited (LCL) is the
Pakistan’s largest producer and leading exporter of quality cement with the production capacity
of 7.75 million tons per annum. The company is listed on Karachi, Lahore, Islamabad, and
London Stock Exchanges.
Over the years the company has grown substantially and is expanding its business
operations with theproduction facilities at strategic locations at Karachi to cater to Southern
regions, Pezu and Khyber Pakhtunkhwa to furnish the northern areas of the country. Lucky
Cement Limited is the Pakistan’s first company to export sizeable quantities of loose cement
being only the cement manufacturer to have its own loading and storage terminal at Karachi port.
Lucky Cement is an ISO 9001:2008 and 14001:2004 certified company and also many
other certifications including Bureau of Indian Standards, Sri Lankan Standard Institute,
Standard Organization of Nigeria, Kenya Bureau if Standards and South African Bureau of
Standards. Other exclusive attributes that allow Lucky Cement to stand ahead of competitors is
its transportation fleet of 77 bulkers and 2 ship loaders.
Organization Structure:

4. Some Important aspects related functions of Management:
Lucky Cement Company, the best exporter in Pakistan, sponsored by “Yunus Brothers
(YB) group” running his business since 1996, who involves in effective decision making and
they are making links between performance and rewards. In the world of Globalization, Lucky
Cement is going smoothly. Effective decisions make the edge over the competitors in cost and
energy and efficient use of resources in order to meet the efficiency and performance. LCL
believes in providing best returns by identifying crisis problems and competitors’ weaknesses,
competitors are Kohinoor Maple leaf Cement Company, Cherat Cement Company Ltd., Thatta
Cement Company, Fauji Cement and DG cement etc. Noman Hassan, Chief Operating Officer
(COO) of LCL, he told that from couple of years, because of two primary products, we ranked
on fourth and fifth. This is because we challenged competitors through consistent quality and we
followed all the norms of market so, today now we are standing here. Two plants (Karachi &
Pezu) are the best plants in Asia which are producing 24,000 tons per day of dry process cement.
The biggest advantage of having a plant in Karachi is that customers are close to cement market
and know the value. Now Lucky Cement is exporting more than 10 countries in which UAE is
one of the major markets. Noman Hassan, Chief Operating Officer, observed a most dangerous
thing for any economy is growing population. Lucky cement is focusing on plantation and trying
to do different things in order to get returns and benefits.
To strengthen LCL focus on local market business strategies they first focus markets
locally then by keeping these things they broaden their ideas in order to increase shares in
International market so that they easily get access in construction market. Economies of scale put
the Lucky Cement to maintain its fixed cost. Energy efficiency is cost effective method to
achieve future targets. Now LCL is planning to replace Coal burning from Tyre Derived Fuel
(TDF). It is for saving energy and special thing in that is it contains same energy as oil contains
and 25% more energy than coal. LCL has feasibility to achieve their targets. LCL has established
their infrastructure at Karachi port; with unique cement bulkers in order to carry cement from
Karachi to any other ports which is with compressor have the capacity of carrying up cement 75
tons of cement. In order to get profitable results, LCL is doing providing environmental
protection measures, donation schemes, occupational safety and health and rural development
programs. They are also focusing on CSR (corporate social responsibility). Company expanded
its sales revenue by 28% from last year and recorded as highest after tax profits. LCL focuses on
people development and professional management. COO (Chief Operating Officer), Noman
Hassan, handles all business operations like Marketing, Sales, Human Resources, and Supply
Chain etc. Like Saifuddin A. khan is GM marketing (South), Muhammad Sohail (GM finance) &
Waqas Abrar (GM HR) they are few senior management who are maintaining the environment.
Lucky Cement is planning to acquire a plant abroad, in which Sri Lanka is one of the preferred
destinations. During the year, the project of electricity with HESCO (Hyderabad Electric Supply
Company), where grid station and 22Km lines are successfully installed and company has supply
to HESCO from July 01, 2012. LCL makes annual reports in order to get best results and

5. compare the results. As 28% from previous year, sales revenue has increases and they appraise
the performance by comparing these results.
SWOT analysis identified in The Lucky Cement Company in which their strengths are
such as high quality products, best exports, customer focused and strong financial position in the
market etc. Things like low ads and increasing general expenses are weakening the Lucky
Cement. But this is an opportunity that LCL is investing on new projects (Investment in ICI
Pakistan Business Acquisition, Investment in Cement grinding facility in Iraq, investment in
Cement plant DR Congo etc.), advancement in new technology and plants identified a best
opportunity in Lucky Cement. But in this competitive market price competition and labor union
is a great threat for that company that can any time become dangerous for the company.
Board has provided brief information about the code of conduct, laws, rules and policies,
in order to follow tasks and responsibilities and manage the affairs of the company. COO of LCL
set these tasks and duties to handle all the operation regarding HR, Finance, Marketing, and MIS
etc. All the tasks and duties are to employees and management to tackle these tasks. Currently,
Lucky Cement is a functional reporting structure and it is in contact with Corporate Governance
practices. Lucky Cement focuses on cost reduction and company has made a team in which they
coordinate in a network of goods and services, and coordinate in warehouses as well. Lucky
Cement has given authority to top management to take decisions and setting goals & plans. Mr.
Yunus Tabba (chairman), Mr. Sohail Tabba, Mr. imran Yunus Tabba, they are one of the
members of Board of Directors team and Mr. Muhammad Ali Tabba is CEO, Mr. Noman Hassan
is Chief Operating Officer (COO). This is top management and structure is going centralized, in
which decisions are taken by top management and Board of Directors set goals on overall
organization, “Yunus Brothers Group” but operations are set by Chief Operating Officer, Mr.
Noman Hassan. All the decision are taken by CEO then goes to COO and then all the
responsibilities are delegated middle managers like GM marketing, GM finance, GM HR, GM
Power Generation and then DGM supply Chain, Manager Operation and Manager of brands
communication and coordination.
Lucky Cement hire best people, it focuses on executive development and hire high
executives from top companies. During hiring of year 2011-12, Lucky Cement focused on
creating new environment among employees, and they told to employees that do best things that
they do in everyday life. Their main purpose was to bring a new interaction environment of
newly hired employees. LCL’s approach towards rewarding their employees is based on
performance. Therefore, during year of 2011-12, Lucky Cement has launched new framework of
Performance Management in order to get success, achieve performance and career development
of employees. It helps in effective decision making and it create a link between performance and
reward as well because rewards lead to performance of employees. Lucky Cement has
Performance and Development Plan (PDP) that identify Challenging Goals, Assessment and
planning. Lucky Cement has invested in training and development in order to get employees’
skills and expertise. They are providing On-job-training and external training as well. Other than,
they identify the employee’s needs in order to provide them training.

6. Lucky Cement is focusing that on the basis of performance they are providing rewards.
Injury and accidents are common in these industries. LCL is providing best support for these
things. They set their rewards in compensation structure and pay structure. Lucky Cement is
influencing the competitive world by their aim “I’m Lucky Cement” that simply show the
leadership. Through faith, honesty and excellence they are leading the world. These three things
include in their leadership functions. LCL was unparalleled structure but through changing
dreams into reality and producing quality products and putting competitive edge over the market
have lead them to stand first in the market. In LCL’s performance, they told themselves that
“leadership is a solid as concrete”. This thing shows that how they are influencing other people
to build structure.
Some Issues related functions of Management:
Lucky cement faced a quality issue recently by selling its products to Karachi Stock
Exchanges. The biggest problem faced by LCL is pricing of products with high taxation. High
tax increased the cost per bag, which is of 50 KG. Because of that issue, builders and developers
start protesting against the pricing but later on LCL overcome it. There is main reason to increase
the price that customer should also understand the need of the company, but they do not then
company goes to lower productivity, same case is with Lucky Cement. LCL was under pressure
of competitor, Pakistan Cement Industry. During the year of 2010-11, Cement industry faced the
debts about Rs. 125.5 billion, that caused loss of cement units. Lucky Cement despite having the
best exporter in the Country couldn’t become able to make an image as its competitor Falcon
Cement Company has. Lucky Cement doesn’t have contingency planning in order to identify its
weaknesses and threats. Contingency planning will help to cope up with future problems. Every
business has its own concern; it’s a business of Yunus Brothers Group, so Lucky Cement
running its operations at its own level.
One of the issues of not having the best productivity is centralized structure faced by
LCL. Top management only has the authority at all levels; even it is a large organization and
running its operations at different levels. There is no job rotation in LCL, which is not good for
that organization. LCL is currently using functional structure that can be bad for it in future.
They are coordinating at their levels only. Despite of having good quality of employees and their
value, still Lucky Cement is facing a problem in Human Resource (HR), which mostly
organization face i.e. it only has business and products concept, making organizational divisions,
implementation of solutions rather than Job design and job analysis. Still, all functions of HRM
are followed but there is no proper job analysis.
Lucky Cement’s issue is that they are not identifying the employees’ needs; just they
are focusing on the performance. On the basis of the performance, they are giving benefits and
incentives in order to get productivity. Lack of skills in employees can’t lead to performance. So,
Lucky cement’s issue can be their hierarchy level, when they will not coordinate. The
information would not promote to each other. Lucky cement was criticized by South Africa that
they are selling products without any proper authority and certification. This thing will make a
negative impact in market. If we point out this issue, this can’t influence people.
As LCL has the functional structure, coordination is across departments to departments,
so this can’t make control over the organization.

7. Suggestions& Recommendation:
 Company has to reduce cost, use cost cutting method in order to get productivity
and raise demand.
 LCL should use an effective decision making process by identifying nature of the
problem whether problem is crisis or non crisis; then they have to generate
alternatives accordingly and on the basis of generated solutions company should
evaluate the solutions, then at the end implementation and proper decision making
should be taken.
 LCL should be customer oriented in order to understand customer needs.
 Company should give opportunities to think in new ideas; they should include
their employees in out-of-box thinking.
 Company should forecast their performance periodically; this will help in
evaluating the problems.
 LCL should specify its overall missions and goals, main concern on mission
would enable company to focus on increasing performance. By increasing this
performance customers would increase, products quality would be raised and their
main purpose would be defined. SMART goals are necessary.
 Company should specify its self concept to customers by ads or by any other
mean. Because, company’s branding is very weak. This will help in advertising as
well.
 As company is strong in its public image but he has to focus on employees’
relationship as well. When there will be a friendly environment between top
management, middle management and lower level management. Then dealing
will be easy and coordination would be easy and all the problems would be
defined to each other clearly and no ambiguities would longer more.
 When there would be proper allocation of resources and its utilization then LCL
would able to bring innovation in the industrial market.
 There should be contingency planning in order to identify threats and weaknesses.
 Company should rotate the tasks of employees in order to get performance by
giving new tasks and skills in employees. In that way, employees would able to
get specialized in different fields and LCL would make fame in industry.
 As LCL is dealing with functional structure, coordination is not very much good
across different departments as hybrid structure has. So, LCL should have a
hybrid structure in order to have a good coordination across departments. This
would enable them to get timely information of departments, divisions and
products. They would able to understand customers’ preferences as well.
 There should be decentralized structure, because LCL is a largest organization of
Pakistan, so in order to get quick responses authority should given to lower level
management.

8.  In HRM functions, LCL should identify need or requirement, but there should be
job design. Job analysis in hiring new employees would help LCL to get
performance from skilled workers. There should be no favoritism in hiring
employees, and whole HRM function should be followed in recruiting and
selection.
 As LCL is focusing on performance management and training but there should be
whole process of evaluating employees’ performance so that rewards and benefits
should be set. This will motivate employees and bring an energetic behavior
among employees.
 Company should set goals by their own decisions not biasness and they should
keep all things in ‘check n balance’. They should train their employees if they
found weaknesses and all the hindrances in their work should be removed.
 Company should choose right people for work, specialized one in his field. They
should develop interest in employees by some socially acceptable behaviors.
 In order to get performance from employees LCL should set rewards and benefits
for employees rather than more focusing on other charities. This will help them to
identify the needs of employees and performance would be driven.
 Top management should set benefits and rewards according to the ability if
employees. They should assess their efforts and responsibility in tasks then
accordingly benefits and rewards should set.
When these planning, organizing and leading would be followed then there would be full control
on Controlling as well, this will make coordination very easy.
To improve is to change; to be perfect is to change often.
Winston Churchill..!!