MP Proposal (JSIL)

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JS Investments (Proposal) 1

Research Proposal:

Group Members

Ahsan-ullah BD-04/03

Akbar Aqil BD-28/05

Imran Adeel Haider BD-18/05

Imran Farooqi

Jibran Wasiq BD-21/05

Najeeb Swaleh BD-41/04

Rafay Anwar

Waseem Ahmad BD-66/2004

Course: Managerial Policy

Instructor: Dr. Mahnaz Fatima

Institute of Business Administration


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Table of Contents

TABLE OF CONTENTS ..........................................................................................................................2

JS INVESTMENTS LIMITED (RESEARCH PROPOSAL) ..............................................................................3

INTRODUCTION TO THE COMPANY..............................................................................................................3 RESEARCH PLAN ....................................................................................................................................3 TENTATIVE TABLE OF CONTENTS ................................................................................................................4 TENTATIVE STATEMENT OF MAJOR PROBLEMS ..............................................................................................5 TENTATIVE STATEMENT OF MINOR PROBLEMS ..............................................................................................5

REFERENCES ......................................................................................................................................8

APPENDIX ..........................................................................................................................................9

APPENDIX A:ORGANIZATIONAL CHART .......................................................................................................9 APPENDIX B:TENTATIVE INTERVIEW SCHEDULE........................................................................................... 10APPENDIX C:STATEMENT OF CONTRIBUTION.............................................................................................. 11


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JS Investments Limited (Research Proposal)

Introduction to the Company

JS Investments Limited (formerly JS ABAMCO Limited) was incorporated on February 22,

1995. It undertakes investment advisory and asset management services, and is active in the Investment

Finance Services, along with being a Pension Fund Manager. It is listed on Karachi Stock Exchange

(KSE) since April 19, 2007 with the symbol JSIL.

JSIL is a part of the Jahangir Siddiqui Group, one of Pakistans most diversified and prestigious

financial institutions. Its founding partners also include INVESCO PLC (which manages assets in excess

of USD 370 billion) and International Finance Corporation (IFC). Some important points to consider

about JSIL are:

First private sector asset Management Company in Pakistan. Managing the largest fund size (over PKR 35 billion). First asset Management Company with AM2+ Asset Management Intrinsic

rating by PACRA.

Research Plan

The research will be conducted over a period of approximately three months. Both secondary and

primary data sources shall be used for absolute quality.

To evaluate the financial performance of JSIL and to perform competitive analysis, we will

mostly be looking into secondary data. These include the accounts of the company and its major

competitors

1

, websites of JSIL

2

, its major competitors and the MUFAB

3

, Asset Management Industry

reports published by the MUFAB and various asset management firms and other relevant data sources.

1http://www.mufap.com.pk/Members%20Address.htm

2http://www.jsil.com
http://www.mufap.com.pk/Members%20Address.htmhttp://www.mufap.com.pk/Members%20Address.htmhttp://www.mufap.com.pk/Members%20Address.htmhttp://www.jsil.com/http://www.jsil.com/http://www.jsil.com/http://www.jsil.com/http://www.mufap.com.pk/Members%20Address.htm


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For a functional analysis of JSIL, we will meet the heads of the various business units and a few

middle management personnel. The agenda would be emailed to the interviewee prior to the meetings in

the form of a questionnaire. A tentative interview schedule for the remaining meetings has been prepared

and is attached in Appendix.

On the basis of the data gathered, we will perform a financial analysis of JSIL, an external and

internal environmental analysis and identify major and minor problems facing JSIL. We will then

determine strategic alternatives and recommend one strategy which we feel JSIL should adopt to tackle its

problems. These contents will be part of a Progress Report which will be submitted on March 8, 2008.

Based on the Progress Report and the feedback received on it, a Live Case will be submitted on April 25,

2008.

Tentative Table of Contents

Introduction History The External Environment

- Economic- Social, Cultural, Demographic & Environmental Factors- Technological Environment- Regulatory, Legal & Political Environment- Asset Management Industry in Pakistan- Global Asset Management & Investment Finance Challenges

Functional Analysis- Investments- Finance

3http://www.mufap.com.pk
http://www.mufap.com.pk/http://www.mufap.com.pk/http://www.mufap.com.pk/http://www.mufap.com.pk/


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- Research- Compliance & Risk Management.- Marketing & IR4 Function.- Business Planning & Development.- Operations- Human Resource Management- Information Technology- Sales- IFS invest financial services

Tentative Statement of Major Problems

Although there is a vague direction that JSIL has to be the largest asset management company of

Pakistan, there are no clear vision and mission statements. This leads to the bigger problem that there is

no strategic direction of the company. This is because the asset management business has its roots in

brokerage business, which is not managed strategically by the owners: saeths5 Thus there is no shared

vision or set directions of the organization.

Tentative Statement of Minor Problems

From the information collected so far, the following have been tentatively explored as the minor

problems.

1- Lack of knowledge on mutual funds: In Pakistan, people do not know what mutual fundsare. They only know that they can invest their savings with banks, who give meager returns.

2- Company awareness: People recognize ABAMCO, but not JS Investments.

4Investor Relations

5Pakistani Business Jargon which signifies a mindset of typical business entrepreneurs who are reluctant to adopt

the best business practices commonly believed and implemented worldwide.


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3- Inefficient system at Call Center & Customer Relationship Management: There is nosystem in place to inform of the number of calls a customer made, nature of problems reported,

resolution, and the individual of Operations to whom the request was forwarded. It lacks such analytics,

which could help marketing department in segmenting customers. Thus useful information is being lost,

using which the organization can do a lot.

4- Lack of co-ordination between Marketing & IR: IR is not updated with new campaignsand information that Marketing makes. Thus if a customer calls IR, the IR representative would not be in

a position to satisfactorily answer the queries about new products. Such products are usually what

Marketing dept. would have already sent to press for advertising.

5- Weak sales follow-up system: There is no way to track and follow-up on sales leads thatIR receives. Customers have to wait for days.

6- There are no departmental budgets that could be monitored. There is no system to trackthe expenses and profitability of a campaign.

7- Employee turnover: There is so much competition in the market that people are beingpicked away. In two years, they have had three teams of marketing.

8- Few Distribution channels: There are not many distribution channels. JSILs funds aresold at the branches of Citibank, ABN AMRO and Standard Chartered Bank. But these banks do not

project JSIL funds very much. There are no flags or marketing material for the customers to know and ask

for it. The reason is that there is that banks do not want their customers to withdraw money from them

and invest with someone else. They want to earn on the spread and give away very little to the customers.

9- Internal marketing is missing: There is no realization yet that the business has to changeits way of doing business, and Marketing has to have a say in how the company functions. If that doesnt

happen, customers could be driven elsewhere and JSIL will lose.

10- Internal brand awareness: People within the organization are not aware fully of theproducts that JSIL offers to its customers.


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11- Lack of creativity/old-style approach: The marketing of mutual funds is growing veryfast. Customers are expecting more from the asset management companies. They are also beginning to

realize the importance of brands. Since JSIL is not an established brand yet, people do not have affinity

for it. On the other hand, the mindset of the people at JSIL is to focus on corporate and high net-worth

individuals. In such a fast pace market, JSIL can lose a lot if it doesnt rid itself of this approach.

12- Workflow and Procedural Hassles/ Loopholes: There is no system to facilitate the processof creating a campaign, its approval from the higher authorities and later by Finance dept. which causes a

lot of delay.

13- Lack of wide-scale Accounting System: There is no cost accounting system that couldtell the Profit and Loss of a campaign. Furthermore, there is no inventory management system of the

marketing collaterals.

14- Automation (external): JSILs processes are highly automated and proper checks andbalances are in place but problem arises when they do not get the required information on time in order to

perform their work and this is mainly due to lack of automation at our stakeholders part.

15- Product development: With the passage of time requirements changes and JSIL has tokeep pace with the change of process, system and procedures accordingly.


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References

JS Investment official website: http://www.jsil.com accessed on 10th

January 2008

Mutual Fund Association of Pakistan; http://www.mufap.com.pkaccessed on 27th

January 2008
http://www.jsil.com/http://www.mufap.com.pk/http://www.mufap.com.pk/http://www.jsil.com/


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Appendix

Appendix A: Organizational Chart


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Appendix B: Tentative Interview Schedule

# Name Position Phone Date and Time Address

1 Surraiya Hasan Head of Human Resources 111-222-626 28-Jan-08 05:40 PM JSIL Head Office, 7th Floor, The

Forum, Block 9, Clifton, Karachi.

(Phone)

2 Bilal Rashid Senior Manager,

Marketing and Investor

Relations

111-222-626 29-Jan-08 12:00 PM JSIL Head Office, 7th

Floor, The


3 Surraiya Hasan Head of Human Resources 111-222-626 02-Feb-08 02:00 PM JSIL Head Office

4 Zafar Iqbal Head of Operations 111-222-626 07-Feb-08 03:00 PM JSIL Head Office

5 Munawar Alam Siddiqui Chairman 111-222-626 JSIL Head Office

5 Bilal Rashid Senior Manager,

Marketing and IR

111-222-626 07-Feb-08 03:00 PM JSIL Head Office, 7th Floor, The


6 Manager Compliance and

Risk

Manager Compliance and

Risk

111-222-626 07-Feb-08 03:30 PM JSIL Head Office

7 Manager Investments Manager Investments 111-222-626 14-Feb-08 03:00 PM JSIL Head Office

8 Manager Business

Planning and Development

Manager Business

Planning and Development

111-222-626 19-Feb-08 11:00 AM JSIL Head Office


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Appendix C: Statement of Contribution

Name: Najeeb Swaleh

Contribution:

Identified alternate organization (Siemens Pakistan) and spoke to relevant people in the organization. Participated in group meetings and task assignments Contributed towards finalizing the research proposal.

Signature:

Name: Waseem Ahmad

Contribution:

Was part of the initial group discussions regarding the identification of the organization and then itsmajor and minor problems.

Researched on the external environment the asset management companies are working in. Worked with the team on preparing the research proposal.

Signature:

Name: Akbar Aqil

Contribution:

Visited the Organization and accessed Mr. Bilal for the interview with the team available. Gathered data on research on the asset management companies already done by Al-Falah Securities

Private Limited for analyzing.

Was part of the initial discussions with JSIL personnel and discussed about the issues and addressJSIL's concerns about the project.

Worked with the team on preparing the research proposal.

Signature:


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Name: Imran Adeel Haider

Contribution:

Identified the organization and accessed the relevant contact person. Conducted research on the asset management companies and the problems they are facing. Held initial discussions with JSIL personnel to iron out the issues and address JSIL's concerns about

the project.

Conducted initial interview with Ms. Surraiya Hasan (Head of HR). Facilitated groups meetings and task assignments. Coordinated the interview with Mr. Bilal Rashid and took notes. Worked with the team on preparing the research proposal.

Signature:

Name: Raafay Anwar

Contribution:

Formulated the tentative table of content needed for the proposal Contributed towards brainstorming of the minor issues concerning JSIL

Signature:

Name: Imran Farooqi

Contribution:

Participated in the brainstorming session at the start of the project Contributed minor points in the collaborative project document

Signature:


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Name: Jibran Wasiq Syed

Contribution:

Participated in the brainstorming session at the start of the project which decided the direction andscope of the project.

Participated in all the meetings sessions regarding the project. Participated in the interview with Mr. Bilal Rashid and took notes. Provided collaborative document sharing facilities which enabled all group members to work

concurrently on a single project document via the Internet.

Made the Research plan, Introduction and final formatting of the proposal.

Signature:

Name: Ahsan-ullah

Contribution:

Participated in the group meetings and brain-storming sessions Helped identify the project issues and proposal development.

Signature:

MP Proposal (JSIL)

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