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EXECUTIVE SUMMARY




The Klein Schanzlin and Becker (or KSB) Group is one of the leading producers of
pumps, valves and related systems. KSB has expand themselves that they are know all
over the world and mostly everywhere, where there is a new company or building the
products of ksb there its has a history of 130 years in business sector. KSB is one
affiliated group in many countries. The company’s international operation makes the
organization as manageable dimensions for short pathways. They are large enough to
offer the whole spectrum of operations and all the interesting activities one expects of
a global player. They are there in every sector of production engineering, design and
development, sales and marketing, services, materials management or in all the areas
of business administration. The aims to find out whether KSB is managing its
resources for competitive advantages by company’s key business structure and
operations, products as well as provides summary of its strategies.


      The strategic method of making process within the company through porter’s
method. SWOT Analysis of the company provides Strengths, weaknesses,
opportunities, Threats as well as provides a good framework for reviewing strategy,
position and direction of a company or business proposition.


The concern about ksb global strategies is to maintain its growth. It also includes their
transformed business model through innovation that is producing sustainable
competitive advantage. Innovation and research Development are the major emphasis
on the improvement of automation of pumps and valves with the reduction of human
efforts and life cycle cost.
TABLE OF CONTENTS


INTRODUCTION………………………………………………........................4


STRATEGY ANALYSIS…................................................................................6


RESOURCES AND CAPABILITIES…………………………........................10


THE NATURE AND SOURCES OF COMPETITIVE ADVANTAGE……...13


INNOVATION AND CHANGE……………………………………………....14


EVIDENCE OF NEW STRATEGIES FOR GROWTH………………………14


ACTS OF SUCCESS…………………………………………………………..15


CONCLUSION………………………………………………………………...16


REFRENCE LIST……………………………………………………………...17


APPENDICES……………………………………………………………….....18
4

INTRODUCTION
                   KSB has been serving the community since 1887 which is founded in
Germany and expanded almost all over the world in 130 years. Company main
objective was innovation and development in the field of pumps and valves.KSB
Production amenities in 19 countries, marketing companies and service centres in
more than 100 countries. The ksb Group is on furnish all over the world with
approximately 14000 employees globally. With Market capitalization of € 707.6
million sales of companies, offices, agencies and more than 30 manufacturing sites.
2000 highly trained specialists from around 120 service centres offer our customers
global inspection, maintenance and repair of KSB products and even competitor
makes.


       KSB PUMPS COMPANY profiles provided detailed financial data and key
credit information. KSB Pumps Company predominantly operates in the Engineering
Services sector. The Company is principally engaged in the manufacture and sale of
industrial pumps, valves, castings and related parts.



    According to KSB Pakistan is an affiliate company of the world famous German
KSB Group, which was founded in 1871. The KSB Group is among the leading
companies in the field of pumps and valves with subsidiaries and affiliated companies
all over the world. The KSB name stands for the highest standards of product and
service quality.


KSB Pakistan was established July 1959 in Lahore. The production facilities at
Hassanabdal were completed in 1964 and a full fledged foundry was commissioned in
the same premises in 1980. Now the company employees over 500 people and have
Sales Office at Lahore, Karachi, Quetta, Rawalpindi, Peshawar and Multan. The
company also operates through a dealership network throughout the country.


KSB Pakistan became a public limited company in 1979 providing a broader base for
local participation. The company’s shares are traded on both the Karachi and Lahore
Stock Exchanges. The Company received the Merit Trophy for exports of the
5
Federation of Pakistan Chambers of Commerce and Industry and top company award
for exemplary payment to the shareholders by Karachi Stock Exchange.


Another award for corporate excellence and good Management practice as bestowed
on the company by the management Association of Pakistan.


During the last thirty years the company has rapidly expanded its production range to
include a large variety of pumps to serve various sectors of the economy. The new
pumps for local production have been selected to particularly meet the requi8rements
of sugar, paper and other process and chemical industries apart from meet the
requirements of drinking water supply, sewage disposal and surface drainage
schemes. The latest additions have been pumps of large capacity which are
specifically meant for irrigation and drainage applications. Pumps are produced in
various metallurgical executions including cast iron, Ni-resist cast iron, bronze and
stainless steel. The range submersible motors ranging from 3HP to over 100HP.


KSB Pakistan has been the major supplier to the vitally important control and
reclamation projects (SCARP) installed by WAPDA. In the agricultural section,
KSB’s name is synonymous with productivity and reliability. The latest technology
and know how has been made available to KSB Pakistan’s customers.


KSB Pumps are produced strictly in accordance with the design and specifications of
KSB AG in order to maintain standards of the highest quality. Comprehensive
inspection and test bed facilities are available at Works Hassanabdal to ensure
compliance with these quality standards.


The production facilities are also being regularly modernized and extended to cope
with the challenges of new product technology. The foundry is capable of producing
sophisticated automotive components apart from pump and valves casting and is
leading supplier of tractor castings in the country.
6

STRATEGY ANALYSIS:
For several years, the share pump-related services have taken in the value creation
chain has been on the increase. The term is used to describe the road from the raw
material to the consumer plus the value added at every station. In KSB Pakistan the
Structure in the designing of implementing and evaluating strategies is based on the
specific process of the organization’s mission, Vision and objectives, developing
policies and plans. A balance scorecard is often used to evaluate the overall
performance of the business and its progress towards objectives.


POTER’S FIVE MODEL:

Poter’s five forces have been analysed to develop KSB successful marketing
strategies. By focusing and analysing the structure of and dynamics between the
Five forces – Competitor, Potential new entrants, Customer, Supplier and
Substitute. KSB is working on to find the opportunities for improving upon its
marketing strategies. These forces are identified as follows.


1- Competitor:

1. Price 2. Flexibility 3 . Quality Service 4. Differentiation
5. Time. These five identify the real competitor of the business.
KSB has faced competitions’ from Kirloskar Bros. both companies have achieved
their reason of competitive advantage as well as quality in terms of product services
and innovation.




                                                                                  7
2- Potential New Entrants:


To be provided world class human resource with highly motivated and empowerment
to the new Entrants, which includes Local Training, Training Abroad, Service Award,
Leaves, Medical Insurance, Travelling benefits, salary employment benefits, personal
loans.


In 1970 Dawood engineering introduces new technology in the pumps and valves
business. In after that a joint venture between the cheenab engineering and dawood
revealed new entity in the business of manufacturing goods.


3- Consumer:


Product is to be provided to consumers on economical cost prevailing in the market.
All facilities such as installation, commissioning, periodically repairs & maintenance
are to be provided by the Suppliers. Suppliers as and demanded by them on Priority
basis. KSB Operates in the field of Industry and agriculture sector and industry sector
is related with the industry of spare parts which includes companies such as Toyota
and Honda. but as far as agriculture sector is concerned the actual consumer is the
agricultural land consumer.


4- Supplier:

As large organization KSB deals with lot of suppliers who are providing goods and
services to KSB as well as to its customers.
There is a supply chain Model




                                                                                  8
Consumer


                                         KSB


                      Supplier of component group and systems


                 Supplier of components systems suppliers of c part


            Supplier of un-machined semi finished and standardized parts


5- Substitute:

The sector is in state of rapid growth and technological development, and there fore
new competitors are coming to the sector even though the sector is dominated by KSB
As far as other companies are in they are playing good role in the market.


     1. Products to be supplies on low case
     2. High-performance design or high quality consistent quality.
     3. Rapid delivery (on-time delivery)
     4. Flexibility         = Variety/Volume.
     5. Superior customer service.
     6. Convenience.


SWOT ANALYSIS- KSB:

In SWOT analysis you identify Strengths, weaknesses, market opportunities for your
company and threats to your business. The way to use the analysis is develop
marketing strategies that will minimize the affect of weaknesses on the business.
While maximizing the strengths. By that will help in matching your strengths against
the market opportunities.


                                                                                    9

   1. Strengths
a. Job Knowledge
           b. Productivity
           c. Job perfection
           d. Professional ability
           e. Sense of responsibility
           f. Initiative.
           g. Supervisory/Managerial skills


Weakness:


All weaknesses to be pointed by the immediate
Supervisors/Foreman/Engineer/Managers of their subordinates so that corrective
measures (such as training of the relevant job, discipline, co-operation, attitude &
behaviour) are to be adopted for improvement of quality of products.



Opportunities:


   • Industrial Engineering.
                   Spare parts and other components.

   • Maintenance.
                   After sales services.

   • Distribution.
                Sales offices chain around the country.
   • Operations.
                  Making joint venture with firms. R&D program.

   • Public Relations.
                  Showing the true picture and attracting new buyers.
                                                                                       10
   • Purchasing.
Increasing its physical and technological capabilities.




Threats:


1. Economic conditions.
           The current economical condition of the country.
2. Legal environment.
            The laws conflicts in the business for the legal framework.
3. Technology.
             The technological changes in terms of innovation.

4. Competition.
             More threats from the competitors with low pricing strategy.
5. Markets.
             Business condition and the market condition.



Resources and capabilities:


   1. Labour productivity

In KSB Productivity can be defined as how efficiently and effectively we use our
resources at lowest possible cost. Labour plays a very important role and consider as a
basic unit for the productivity of any organization.

There are many factors that influence on the labour productivity and it is very difficult
to measure. There are many factors that increase the efficiency and effectiveness of
any organization but labour is consider as one of an important element. Labour
efficiency depends upon their skills and knowledge towards their job. If their attitude
towards job is positive and they are internally satisfied with their job they will do their

                                                                                      11
work honestly and they will be loyal with their jobs and their attitude at the work
place will be better than those who are not internally satisfied with their jobs. So there
should be right people at right place.

Experience makes the labour skills high, the high experience in field leads to high
performance at workplace. More experience and high skilled employees play a very
important role in the productivity of any organization. Attitude also consider a lot... if
any employee has high skills but has poor attitude, his performance and output will be
low and this will produce a negative effect on the overall performance of any
organization. So there should be always positive attitude towards work for better
performance. Training also counts a lot. If employees have not accurate knowledge
about their work then the organization's productivity can be low. If the employees do
not know how to use the new technology or new machinery and they have no
knowledge to handle the new technology and they are not trained how to use this, then
this can produce a negative effect on the efficiency of the organization and the
organization can not compete in the market.

Motivation is also another factor in the productivity of KSB organization. if
employees are motivated by their manager their performance level is limited level.
Managers keep their employees' motivation level high they can motivate them by
fulfilling their basic needs, their safety need, he can motivate them by increase their
salary by giving them bonus on their work. they should reward their employees and
treat them equally and eliminate the discrimination among them. He should show
sympathy with their personal problems, promote their work level and should increase
their wages etc.

So these are the factors to enhance the efficiency of the labours and decrease the
efficiency of the labours. By eliminate the negative factors and increase the positive
factors KSB increase overall its performance.




                                                                                      12
2. Machine Productivity:


                In the past KSB System for purchasing and delivering used the comet
software but analysing the in future that wont work they move to more advance level
software called sap. Machine productivity, in today's working environment, is
something we all must strive for. Software systems aim to improve efficiency through
advanced monitoring of machinery and removing the reliance on additional personnel
who would normally be required to do perform that monitoring.

   3.   Capital productivity:

                   A way of measuring a company's efficiency by comparing working
   capital with sales or turnover. It is calculated by first subtracting current liabilities
   from current assets.



  4. Energy productivity:
        Like labour or capital productivity, energy productivity measures the output
and quality of goods and services generated with a given set of inputs. The ratio of
value added to energy inputs, which is the inverse of energy intensity of GDP,
measured as a ratio of energy inputs to GDP.
Energy productivity is a useful tool with which to analyse the public-policy aims of
demand abatement and energy efficiency because it encapsulates both. By looking in
terms merely of shrinking demand, there is a danger of denying opportunities to
consumers particularly those in developing economies that are an increasingly
dominant force in global energy demand growth. Rather than seeking to reduce end-
user demand and thus the level of comfort, convenience, and economic welfare
demanded by consumers there should be a focus on using the benefits of energy most
productively.
The concept of energy productivity provides an overarching framework for
understanding the evolving relationship between energy demand and economic
growth.

                                                                                       13
Energy-productivity improvements can come either from reducing the energy inputs
required to produce the same level of energy services or from increasing the quantity
or quality of economic output.


Nature and sources of competitive advantage:


Nature and sources


   1. Standardization:
   2. Use of Internet
   3. Computer viruses
   4. Searching for lost or misplaced items
   5. Scrap rates
   6. New workers
   7. Cuts in health benefits


Competetive advantage


   •   The emergence of competitive advantage
           External sources of change
           Changing customer demand
           Changing prices
           Technological change


   •   Sustaining competitive advantage
           Identification
           Incentives for imitation
           Diagnosis
           Resource acquisition


                                                                                14
   •   Competitive advantage in different market settings
Market type
          Source of imperfection of competition
          Opportunity for competitive advantage


   •   Types of competitive advantage: cost and differentiation
       Cost advantage (similar product at lower cost)
       Differentiation (price premium from a unique product)

   Innovation / Change:
   There are plenty of innovation and changes around the world, but the most
   important change is going on the Australia. With water consume and recycling the
   water and in industrial sector high pressure pumps showcasing in exhibition in
   Brisbane 2010.gobally Ksb innovating a product to convert the thermal heat in to
   energy and use it to increased the operating reliability of optimised high suitable
   handling mineral and synethic.
           Maintaining innovation is critical and especially in tough times and
getting it right is as must. In 2009 KSB introduce a new pump called “ZORRO” that
was a new innovative change. That was introduced with the current study of the
customer needs. The company define its change on following factors.
   1. Develop productivity measure
   2. Determine critical )bottleneck) operations
   3. Develop methods for productivity improvements.
   4. Establish reasonable goals
   5. Get management support
   6. Measure and publicize improvement
   7. Don’t confuse productivity with efficiency.




Evidence of new strategies for growth:-
1.   All CNC Machines imported and installed
    2.   Modern technology is being utilized
    3.   Workforce/Management people are being deputed on deputed locally/abroad
         for training.
    4.   Most of facilities beyond the Labour Laws are being extended to workforce.
                                                                                      15
    5.   Best environmental atmospheres have been provided at their workplace to
         facilities the workers and enhance their productivity




Acts of Success:
    1. Empowerment:


                              Empowerment refers to increasing the spiritual, political,
social or economic strength of individuals and communities. It often involves the
empowered developing confidence in own capacities.
    2. Communication:


                            Communication is a process of transferring information from
one entity to another.


    3. Transparency:


                         Transparent procedures include open meetings, financial
disclosure statements, the freedom of information legislation, budgetary review,
audits, etc.




    4. Synergy:
Synergy is where different entities cooperate advantageously for a
final outcome. If used in a business application it means that teamwork will produce
an overall better result than if each person was working toward the same goal
individually.


                                                                                      16

Conclusion:-
KSB is one of the old companies in the world with the major business enterprise.
KSB has a responsibility to our shareholders, employees, customers and the nation to
continually improve the performance of the company and its business. Doing the
works with responsible way will lead the prosperity in the industries and communities
in which it participate, there are plenty of bigger challenges to be face yet, the way the
company is growing to innovation of technology will provide the cutting-edge
technology with less cost in internally and investment.
           The competitive improvement mentioned earlier gives Ksb confidence that
if it’s prepared to take the lead in the new world. It can be seen that various strategies
are used by ksb in order to gain advantages over its competitors. In a competitive
market a company must identify its strengths, weaknesses, opportunities and threats to
strengthen the company and achieve its objectives and target different market. With
technological changes comes innovation and innovation can be good or bad for a
company and in the case of KSB innovation was perceived through vigilance.
17

References:-


KSB Pumps Pakistan 2010, KSB Pakistan History, Viewed 8 March 2010,
http://www.ksbpak.com/history.htm


Wikimapia 2010, KSB Pumps Company, Viewed 9 March 2010,
http://wikimapia.org/11552119/KSB-PUMPS-COMPANY-Rawlpindi


KSB 2010, a World of Difference, Viewed 8 March 2010,
http://www.ksb.com/ksb/web/COM/en/company/konzern/1__ueber__uns/1a__
KSB__in__Kuerze/ksb__ins__kuerze__en__index__art.html


Companies and Markets, KSB pumps company- Company Financial and Credit
information, Viewed 10 March 2010,
http://www.companiesandmarkets.com/Summary-Company-Financials/ksb-
pumps-company-126216.aspx


Anam Rauf n.d., Labour Productivity factors, Viewed 13 March 2010,
http://ezinearticles.com/?Labour-Productivity-Factors&id=3799836


McKinsey & Company 2010, What is energy productivity?, Viewed 18 March 2010,
http://www.mckinsey.com/mgi/publications/global_energy_demand/Energy_Producti
vity.asp
18

Appendix 1
Financial          Quality
History Mission Values Management
                                                                     Reports           Policy




KSB Pakistan


KSB Pakistan is an affiliate Company of the world famous German KSB Group, which
was founded in 1871. The KSB Group is among the leading companies in the field of
pumps and valves with subsidiaries and affiliated companies all over the world. The
KSB name stands for the highest standards of product and service quality.


KSB Pakistan was established in July 1959 in Lahore. The production facilities at
Hassanabdal were completed in 1964 and a full-fledged foundry was commissioned in
the same premises in 1980. Now the Company employs over 400 people and has
Sales Offices at Lahore, Karachi, Quetta, Rawalpindi, Peshawar and Multan. The
Company is ISO 9001 certified by M/s. SGS Pakistan (Pvt.) Ltd. The Company also
operates through a dealership network throughout the country. The Company
operates a full-fledged Service Department comprising of qualified and experienced
personnel capable of undertaking turnkey installation jobs and O&M Contracts.


KSB Pakistan became a public limited Company in 1979 providing a broader base for
local participation. The Company’s shares are traded on both the Karachi and Lahore
Stock Exchanges. The Company received the Merit Trophy for exports of the
Federation of Pakistan Chambers of Commerce and Industry and top Company award
for exemplary payment to the shareholders by Karachi Stock Exchange. Another
award for Corporate Excellence and Good Management Practices was bestowed on the
Company by the Management Association of Pakistan.


During the last three decades, the Company has rapidly expanded its production range
Appendix 2
Industrial Building Waste Water Water Energy                             GA
Drawings   Technical Literature




                       KVP
                       Vertical type, single stage, non-clogging impeller pumps suitable for sewage
                       and effluent disposal from industries, chemical, paper, sugar and food stuff
                       industries. Available for both wet and dry pit installation.
                       Specifications
                          DN               Q                H          TEMP                SPEED
                        65-350      up to 2700 m/hr    up to 85 m   up to 105 ºC      up to 1450 rpm
                          Download Product Intro.
                       Download O&M Manual.
                        Download Drawings.
                       Download Curves.

                       KWP
                       Single stage, non-clogging, horizontal centrifugal pumps used in process
                       design, suitable for mediums that contain suspended solids and viscous
                       substances, finds its applications in building, food, paper, sugar, sewage
                       and effluent industries.
                       Specifications
                          DN              Q                 H          TEMP               SPEED
                                                                    up to -30 ºC
                        65-300      up to 1900 m/hr   up to 120 m                     up to 2900 rpm
                                                                      to 250 ºC
                          Download Product Intro.
                       Download O&M Manual.
Appendix 3
LISTOFPROJECTS




KSB Projects department is involved in new installations, rehabilitation, operation &
maintenance of water and waste water transfer and treatment systems. The Projects
department designs and implements customized, package systems and installations in
close co-operation with our
customers all over Pakistan.
As a dependable partner with
decades of experience, KSB
Projects has the know-how to
offer customers, innovative
systems for all water transfer
applications.


KSB focuses on three
types of projects namely:




     Turnkey construction
     Rehabilitation & refurbishment
     Operation and maintenance           KSB Projects provides the following
Services to the valued customers:


     Complete engineering and design
     Project development and optimization
     Hydraulic and mechanics
     Construction including all civil, mechanical & electrical works


                                                                           KSB Projects,
Appendix 4:




                   International



  •    Home
  •    Corporate



› Go
•   Share         KSB Group: Consolidated                            Quick Access

•   Financial     Balance Sheet                                      Find the information you
                                                                     need quickly and easily.
    Calendar
                                                                         •   Product
•   Financial                       2008            2007
                                     €               €                       Catalogue
                                             %                %
    Reports                        million          million
                                                                         •   Web-Shop
       o    An    Assets
                                                                         •   Product
            nu    Non-current
                                                                             configurato
                  assets
            al
                   Fixed assets     417.6    29.3   340.7     27.1           r
            Re     Deferred tax
                                    13.7     1.0     12.4     1.0
                  assets                                                 •   Downloads
            po                      431.3    30.3   353.1     28.1
                  Current                                                •   Trade Fairs
            rts   assets
                   Inventories      282.1    19.8   238.3     18.9
            Gr     Receivables
                                                                         •   Consultants
            ou    and other         540.4    38.1   485.2     38.6           Platform
                  current assets
            p      Cash and                                              •   Job
                  current
       o    An                      167.6    11.8   181.4     14.4           Opportuniti
                  financial
            nu    instruments                                                es
                                    990.1    69.7   904.9     71.9
            al                                                           •   CAD files
                  Balance
            Re    sheet total
                                   1,421.4 100.0 1,258.0 100.0


            po
                  Equity and
            rts
                  Liabilities
            Ak
                  Equity (incl.
            tie   minority          605.8    42.6   505.9     40.2
                  interest)
            ng
                  Non-current
            es    liabilities
                    Deferred tax
            ell   liabilities
                                    28.1     2.0     13.3     1.1

                    Provisions      269.6    18.9   259.0     20.6
            sc      Liabilities      23.5     1.7    29.6      2.3
                                    321.2    22.6   301.9     24.0
            ha    Current

            ft    Liabilities
                    Provisions      200.1    14.1   180.3     14.3
       o    Int     Liabilities     294.3    20.7   269.9     21.5
                                    494.4    34.8   450.2     35.8
            eri
                  Balance
                                   1,421.4 100.0 1,258.0 100.0
            m     sheet total

            Re    Click here to download the KSB Group's
                  Consolidated Balance Sheet:
            po
Ksb
Ksb

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Ksb

  • 1. EXECUTIVE SUMMARY The Klein Schanzlin and Becker (or KSB) Group is one of the leading producers of pumps, valves and related systems. KSB has expand themselves that they are know all over the world and mostly everywhere, where there is a new company or building the products of ksb there its has a history of 130 years in business sector. KSB is one affiliated group in many countries. The company’s international operation makes the organization as manageable dimensions for short pathways. They are large enough to offer the whole spectrum of operations and all the interesting activities one expects of a global player. They are there in every sector of production engineering, design and development, sales and marketing, services, materials management or in all the areas of business administration. The aims to find out whether KSB is managing its resources for competitive advantages by company’s key business structure and operations, products as well as provides summary of its strategies. The strategic method of making process within the company through porter’s method. SWOT Analysis of the company provides Strengths, weaknesses, opportunities, Threats as well as provides a good framework for reviewing strategy, position and direction of a company or business proposition. The concern about ksb global strategies is to maintain its growth. It also includes their transformed business model through innovation that is producing sustainable competitive advantage. Innovation and research Development are the major emphasis on the improvement of automation of pumps and valves with the reduction of human efforts and life cycle cost.
  • 2. TABLE OF CONTENTS INTRODUCTION………………………………………………........................4 STRATEGY ANALYSIS…................................................................................6 RESOURCES AND CAPABILITIES…………………………........................10 THE NATURE AND SOURCES OF COMPETITIVE ADVANTAGE……...13 INNOVATION AND CHANGE……………………………………………....14 EVIDENCE OF NEW STRATEGIES FOR GROWTH………………………14 ACTS OF SUCCESS…………………………………………………………..15 CONCLUSION………………………………………………………………...16 REFRENCE LIST……………………………………………………………...17 APPENDICES……………………………………………………………….....18
  • 3. 4 INTRODUCTION KSB has been serving the community since 1887 which is founded in Germany and expanded almost all over the world in 130 years. Company main objective was innovation and development in the field of pumps and valves.KSB Production amenities in 19 countries, marketing companies and service centres in more than 100 countries. The ksb Group is on furnish all over the world with approximately 14000 employees globally. With Market capitalization of € 707.6 million sales of companies, offices, agencies and more than 30 manufacturing sites. 2000 highly trained specialists from around 120 service centres offer our customers global inspection, maintenance and repair of KSB products and even competitor makes. KSB PUMPS COMPANY profiles provided detailed financial data and key credit information. KSB Pumps Company predominantly operates in the Engineering Services sector. The Company is principally engaged in the manufacture and sale of industrial pumps, valves, castings and related parts. According to KSB Pakistan is an affiliate company of the world famous German KSB Group, which was founded in 1871. The KSB Group is among the leading companies in the field of pumps and valves with subsidiaries and affiliated companies all over the world. The KSB name stands for the highest standards of product and service quality. KSB Pakistan was established July 1959 in Lahore. The production facilities at Hassanabdal were completed in 1964 and a full fledged foundry was commissioned in the same premises in 1980. Now the company employees over 500 people and have Sales Office at Lahore, Karachi, Quetta, Rawalpindi, Peshawar and Multan. The company also operates through a dealership network throughout the country. KSB Pakistan became a public limited company in 1979 providing a broader base for local participation. The company’s shares are traded on both the Karachi and Lahore Stock Exchanges. The Company received the Merit Trophy for exports of the
  • 4. 5 Federation of Pakistan Chambers of Commerce and Industry and top company award for exemplary payment to the shareholders by Karachi Stock Exchange. Another award for corporate excellence and good Management practice as bestowed on the company by the management Association of Pakistan. During the last thirty years the company has rapidly expanded its production range to include a large variety of pumps to serve various sectors of the economy. The new pumps for local production have been selected to particularly meet the requi8rements of sugar, paper and other process and chemical industries apart from meet the requirements of drinking water supply, sewage disposal and surface drainage schemes. The latest additions have been pumps of large capacity which are specifically meant for irrigation and drainage applications. Pumps are produced in various metallurgical executions including cast iron, Ni-resist cast iron, bronze and stainless steel. The range submersible motors ranging from 3HP to over 100HP. KSB Pakistan has been the major supplier to the vitally important control and reclamation projects (SCARP) installed by WAPDA. In the agricultural section, KSB’s name is synonymous with productivity and reliability. The latest technology and know how has been made available to KSB Pakistan’s customers. KSB Pumps are produced strictly in accordance with the design and specifications of KSB AG in order to maintain standards of the highest quality. Comprehensive inspection and test bed facilities are available at Works Hassanabdal to ensure compliance with these quality standards. The production facilities are also being regularly modernized and extended to cope with the challenges of new product technology. The foundry is capable of producing sophisticated automotive components apart from pump and valves casting and is leading supplier of tractor castings in the country.
  • 5. 6 STRATEGY ANALYSIS: For several years, the share pump-related services have taken in the value creation chain has been on the increase. The term is used to describe the road from the raw material to the consumer plus the value added at every station. In KSB Pakistan the Structure in the designing of implementing and evaluating strategies is based on the specific process of the organization’s mission, Vision and objectives, developing policies and plans. A balance scorecard is often used to evaluate the overall performance of the business and its progress towards objectives. POTER’S FIVE MODEL: Poter’s five forces have been analysed to develop KSB successful marketing strategies. By focusing and analysing the structure of and dynamics between the Five forces – Competitor, Potential new entrants, Customer, Supplier and Substitute. KSB is working on to find the opportunities for improving upon its marketing strategies. These forces are identified as follows. 1- Competitor: 1. Price 2. Flexibility 3 . Quality Service 4. Differentiation 5. Time. These five identify the real competitor of the business. KSB has faced competitions’ from Kirloskar Bros. both companies have achieved their reason of competitive advantage as well as quality in terms of product services and innovation. 7
  • 6. 2- Potential New Entrants: To be provided world class human resource with highly motivated and empowerment to the new Entrants, which includes Local Training, Training Abroad, Service Award, Leaves, Medical Insurance, Travelling benefits, salary employment benefits, personal loans. In 1970 Dawood engineering introduces new technology in the pumps and valves business. In after that a joint venture between the cheenab engineering and dawood revealed new entity in the business of manufacturing goods. 3- Consumer: Product is to be provided to consumers on economical cost prevailing in the market. All facilities such as installation, commissioning, periodically repairs & maintenance are to be provided by the Suppliers. Suppliers as and demanded by them on Priority basis. KSB Operates in the field of Industry and agriculture sector and industry sector is related with the industry of spare parts which includes companies such as Toyota and Honda. but as far as agriculture sector is concerned the actual consumer is the agricultural land consumer. 4- Supplier: As large organization KSB deals with lot of suppliers who are providing goods and services to KSB as well as to its customers. There is a supply chain Model 8
  • 7. Consumer KSB Supplier of component group and systems Supplier of components systems suppliers of c part Supplier of un-machined semi finished and standardized parts 5- Substitute: The sector is in state of rapid growth and technological development, and there fore new competitors are coming to the sector even though the sector is dominated by KSB As far as other companies are in they are playing good role in the market. 1. Products to be supplies on low case 2. High-performance design or high quality consistent quality. 3. Rapid delivery (on-time delivery) 4. Flexibility = Variety/Volume. 5. Superior customer service. 6. Convenience. SWOT ANALYSIS- KSB: In SWOT analysis you identify Strengths, weaknesses, market opportunities for your company and threats to your business. The way to use the analysis is develop marketing strategies that will minimize the affect of weaknesses on the business. While maximizing the strengths. By that will help in matching your strengths against the market opportunities. 9 1. Strengths
  • 8. a. Job Knowledge b. Productivity c. Job perfection d. Professional ability e. Sense of responsibility f. Initiative. g. Supervisory/Managerial skills Weakness: All weaknesses to be pointed by the immediate Supervisors/Foreman/Engineer/Managers of their subordinates so that corrective measures (such as training of the relevant job, discipline, co-operation, attitude & behaviour) are to be adopted for improvement of quality of products. Opportunities: • Industrial Engineering. Spare parts and other components. • Maintenance. After sales services. • Distribution. Sales offices chain around the country. • Operations. Making joint venture with firms. R&D program. • Public Relations. Showing the true picture and attracting new buyers. 10 • Purchasing.
  • 9. Increasing its physical and technological capabilities. Threats: 1. Economic conditions. The current economical condition of the country. 2. Legal environment. The laws conflicts in the business for the legal framework. 3. Technology. The technological changes in terms of innovation. 4. Competition. More threats from the competitors with low pricing strategy. 5. Markets. Business condition and the market condition. Resources and capabilities: 1. Labour productivity In KSB Productivity can be defined as how efficiently and effectively we use our resources at lowest possible cost. Labour plays a very important role and consider as a basic unit for the productivity of any organization. There are many factors that influence on the labour productivity and it is very difficult to measure. There are many factors that increase the efficiency and effectiveness of any organization but labour is consider as one of an important element. Labour efficiency depends upon their skills and knowledge towards their job. If their attitude towards job is positive and they are internally satisfied with their job they will do their 11
  • 10. work honestly and they will be loyal with their jobs and their attitude at the work place will be better than those who are not internally satisfied with their jobs. So there should be right people at right place. Experience makes the labour skills high, the high experience in field leads to high performance at workplace. More experience and high skilled employees play a very important role in the productivity of any organization. Attitude also consider a lot... if any employee has high skills but has poor attitude, his performance and output will be low and this will produce a negative effect on the overall performance of any organization. So there should be always positive attitude towards work for better performance. Training also counts a lot. If employees have not accurate knowledge about their work then the organization's productivity can be low. If the employees do not know how to use the new technology or new machinery and they have no knowledge to handle the new technology and they are not trained how to use this, then this can produce a negative effect on the efficiency of the organization and the organization can not compete in the market. Motivation is also another factor in the productivity of KSB organization. if employees are motivated by their manager their performance level is limited level. Managers keep their employees' motivation level high they can motivate them by fulfilling their basic needs, their safety need, he can motivate them by increase their salary by giving them bonus on their work. they should reward their employees and treat them equally and eliminate the discrimination among them. He should show sympathy with their personal problems, promote their work level and should increase their wages etc. So these are the factors to enhance the efficiency of the labours and decrease the efficiency of the labours. By eliminate the negative factors and increase the positive factors KSB increase overall its performance. 12
  • 11. 2. Machine Productivity: In the past KSB System for purchasing and delivering used the comet software but analysing the in future that wont work they move to more advance level software called sap. Machine productivity, in today's working environment, is something we all must strive for. Software systems aim to improve efficiency through advanced monitoring of machinery and removing the reliance on additional personnel who would normally be required to do perform that monitoring. 3. Capital productivity: A way of measuring a company's efficiency by comparing working capital with sales or turnover. It is calculated by first subtracting current liabilities from current assets. 4. Energy productivity: Like labour or capital productivity, energy productivity measures the output and quality of goods and services generated with a given set of inputs. The ratio of value added to energy inputs, which is the inverse of energy intensity of GDP, measured as a ratio of energy inputs to GDP. Energy productivity is a useful tool with which to analyse the public-policy aims of demand abatement and energy efficiency because it encapsulates both. By looking in terms merely of shrinking demand, there is a danger of denying opportunities to consumers particularly those in developing economies that are an increasingly dominant force in global energy demand growth. Rather than seeking to reduce end- user demand and thus the level of comfort, convenience, and economic welfare demanded by consumers there should be a focus on using the benefits of energy most productively. The concept of energy productivity provides an overarching framework for understanding the evolving relationship between energy demand and economic growth. 13
  • 12. Energy-productivity improvements can come either from reducing the energy inputs required to produce the same level of energy services or from increasing the quantity or quality of economic output. Nature and sources of competitive advantage: Nature and sources 1. Standardization: 2. Use of Internet 3. Computer viruses 4. Searching for lost or misplaced items 5. Scrap rates 6. New workers 7. Cuts in health benefits Competetive advantage • The emergence of competitive advantage External sources of change Changing customer demand Changing prices Technological change • Sustaining competitive advantage Identification Incentives for imitation Diagnosis Resource acquisition 14 • Competitive advantage in different market settings
  • 13. Market type Source of imperfection of competition Opportunity for competitive advantage • Types of competitive advantage: cost and differentiation Cost advantage (similar product at lower cost) Differentiation (price premium from a unique product) Innovation / Change: There are plenty of innovation and changes around the world, but the most important change is going on the Australia. With water consume and recycling the water and in industrial sector high pressure pumps showcasing in exhibition in Brisbane 2010.gobally Ksb innovating a product to convert the thermal heat in to energy and use it to increased the operating reliability of optimised high suitable handling mineral and synethic. Maintaining innovation is critical and especially in tough times and getting it right is as must. In 2009 KSB introduce a new pump called “ZORRO” that was a new innovative change. That was introduced with the current study of the customer needs. The company define its change on following factors. 1. Develop productivity measure 2. Determine critical )bottleneck) operations 3. Develop methods for productivity improvements. 4. Establish reasonable goals 5. Get management support 6. Measure and publicize improvement 7. Don’t confuse productivity with efficiency. Evidence of new strategies for growth:-
  • 14. 1. All CNC Machines imported and installed 2. Modern technology is being utilized 3. Workforce/Management people are being deputed on deputed locally/abroad for training. 4. Most of facilities beyond the Labour Laws are being extended to workforce. 15 5. Best environmental atmospheres have been provided at their workplace to facilities the workers and enhance their productivity Acts of Success: 1. Empowerment: Empowerment refers to increasing the spiritual, political, social or economic strength of individuals and communities. It often involves the empowered developing confidence in own capacities. 2. Communication: Communication is a process of transferring information from one entity to another. 3. Transparency: Transparent procedures include open meetings, financial disclosure statements, the freedom of information legislation, budgetary review, audits, etc. 4. Synergy:
  • 15. Synergy is where different entities cooperate advantageously for a final outcome. If used in a business application it means that teamwork will produce an overall better result than if each person was working toward the same goal individually. 16 Conclusion:- KSB is one of the old companies in the world with the major business enterprise. KSB has a responsibility to our shareholders, employees, customers and the nation to continually improve the performance of the company and its business. Doing the works with responsible way will lead the prosperity in the industries and communities in which it participate, there are plenty of bigger challenges to be face yet, the way the company is growing to innovation of technology will provide the cutting-edge technology with less cost in internally and investment. The competitive improvement mentioned earlier gives Ksb confidence that if it’s prepared to take the lead in the new world. It can be seen that various strategies are used by ksb in order to gain advantages over its competitors. In a competitive market a company must identify its strengths, weaknesses, opportunities and threats to strengthen the company and achieve its objectives and target different market. With technological changes comes innovation and innovation can be good or bad for a company and in the case of KSB innovation was perceived through vigilance.
  • 16. 17 References:- KSB Pumps Pakistan 2010, KSB Pakistan History, Viewed 8 March 2010, http://www.ksbpak.com/history.htm Wikimapia 2010, KSB Pumps Company, Viewed 9 March 2010, http://wikimapia.org/11552119/KSB-PUMPS-COMPANY-Rawlpindi KSB 2010, a World of Difference, Viewed 8 March 2010, http://www.ksb.com/ksb/web/COM/en/company/konzern/1__ueber__uns/1a__ KSB__in__Kuerze/ksb__ins__kuerze__en__index__art.html Companies and Markets, KSB pumps company- Company Financial and Credit information, Viewed 10 March 2010, http://www.companiesandmarkets.com/Summary-Company-Financials/ksb- pumps-company-126216.aspx Anam Rauf n.d., Labour Productivity factors, Viewed 13 March 2010, http://ezinearticles.com/?Labour-Productivity-Factors&id=3799836 McKinsey & Company 2010, What is energy productivity?, Viewed 18 March 2010, http://www.mckinsey.com/mgi/publications/global_energy_demand/Energy_Producti vity.asp
  • 18. Financial Quality History Mission Values Management Reports Policy KSB Pakistan KSB Pakistan is an affiliate Company of the world famous German KSB Group, which was founded in 1871. The KSB Group is among the leading companies in the field of pumps and valves with subsidiaries and affiliated companies all over the world. The KSB name stands for the highest standards of product and service quality. KSB Pakistan was established in July 1959 in Lahore. The production facilities at Hassanabdal were completed in 1964 and a full-fledged foundry was commissioned in the same premises in 1980. Now the Company employs over 400 people and has Sales Offices at Lahore, Karachi, Quetta, Rawalpindi, Peshawar and Multan. The Company is ISO 9001 certified by M/s. SGS Pakistan (Pvt.) Ltd. The Company also operates through a dealership network throughout the country. The Company operates a full-fledged Service Department comprising of qualified and experienced personnel capable of undertaking turnkey installation jobs and O&M Contracts. KSB Pakistan became a public limited Company in 1979 providing a broader base for local participation. The Company’s shares are traded on both the Karachi and Lahore Stock Exchanges. The Company received the Merit Trophy for exports of the Federation of Pakistan Chambers of Commerce and Industry and top Company award for exemplary payment to the shareholders by Karachi Stock Exchange. Another award for Corporate Excellence and Good Management Practices was bestowed on the Company by the Management Association of Pakistan. During the last three decades, the Company has rapidly expanded its production range
  • 19.
  • 21. Industrial Building Waste Water Water Energy GA Drawings Technical Literature KVP Vertical type, single stage, non-clogging impeller pumps suitable for sewage and effluent disposal from industries, chemical, paper, sugar and food stuff industries. Available for both wet and dry pit installation. Specifications DN Q H TEMP SPEED 65-350 up to 2700 m/hr up to 85 m up to 105 ºC up to 1450 rpm Download Product Intro. Download O&M Manual. Download Drawings. Download Curves. KWP Single stage, non-clogging, horizontal centrifugal pumps used in process design, suitable for mediums that contain suspended solids and viscous substances, finds its applications in building, food, paper, sugar, sewage and effluent industries. Specifications DN Q H TEMP SPEED up to -30 ºC 65-300 up to 1900 m/hr up to 120 m up to 2900 rpm to 250 ºC Download Product Intro. Download O&M Manual.
  • 22.
  • 24. LISTOFPROJECTS KSB Projects department is involved in new installations, rehabilitation, operation & maintenance of water and waste water transfer and treatment systems. The Projects department designs and implements customized, package systems and installations in close co-operation with our customers all over Pakistan. As a dependable partner with decades of experience, KSB Projects has the know-how to offer customers, innovative systems for all water transfer applications. KSB focuses on three types of projects namely: Turnkey construction Rehabilitation & refurbishment Operation and maintenance KSB Projects provides the following Services to the valued customers: Complete engineering and design Project development and optimization Hydraulic and mechanics Construction including all civil, mechanical & electrical works KSB Projects,
  • 25.
  • 26. Appendix 4: International • Home • Corporate › Go
  • 27. Share KSB Group: Consolidated Quick Access • Financial Balance Sheet Find the information you need quickly and easily. Calendar • Product • Financial 2008 2007 € € Catalogue % % Reports million million • Web-Shop o An Assets • Product nu Non-current configurato assets al Fixed assets 417.6 29.3 340.7 27.1 r Re Deferred tax 13.7 1.0 12.4 1.0 assets • Downloads po 431.3 30.3 353.1 28.1 Current • Trade Fairs rts assets Inventories 282.1 19.8 238.3 18.9 Gr Receivables • Consultants ou and other 540.4 38.1 485.2 38.6 Platform current assets p Cash and • Job current o An 167.6 11.8 181.4 14.4 Opportuniti financial nu instruments es 990.1 69.7 904.9 71.9 al • CAD files Balance Re sheet total 1,421.4 100.0 1,258.0 100.0 po Equity and rts Liabilities Ak Equity (incl. tie minority 605.8 42.6 505.9 40.2 interest) ng Non-current es liabilities Deferred tax ell liabilities 28.1 2.0 13.3 1.1 Provisions 269.6 18.9 259.0 20.6 sc Liabilities 23.5 1.7 29.6 2.3 321.2 22.6 301.9 24.0 ha Current ft Liabilities Provisions 200.1 14.1 180.3 14.3 o Int Liabilities 294.3 20.7 269.9 21.5 494.4 34.8 450.2 35.8 eri Balance 1,421.4 100.0 1,258.0 100.0 m sheet total Re Click here to download the KSB Group's Consolidated Balance Sheet: po