Beruflich Dokumente
Kultur Dokumente
Vision
Mission Statement
Introduction
History
Mission Statement analysis
External Assessment
Internal Assessment
Objectives &Goal
Strategy Formulation Frame work
Input stage (IFE, EFE, CPM)
Matching stage (Space, Tows, Grand
Strategy matrix, BCG, IE matrix)
Decision stage (QSPM)
Strategy Structure match
Strategy Evaluation
Vision Statement
We aim at seeing our firm to be model manufacturing
unit producing high quality t-shirts complying with
requirement of quality. Management system is continuously
improving its effectiveness for total customer satisfaction.
We wish to play a leading role in the knitting sector by
keeping us substantial presence in the export market.
Mission statement
1- To purchase and install state of the art machinery and
to acquire sophisticated process technology to achieve
maximum growth in a competitive quality
environment.
2- To exercise maximum care for improvement of quality
of our products by implying a team of high skill
technicians and professional managers.
3- To strive hard to develop new markets for the sell of
our products internationally.
4- To improve customer satisfaction level by adhering
strictly to quality requirements of our customers in
export market and by improving communication with
customers for receiving prompt feedback about
quality of our product.
5- To attend to the prompt resolution of customers
complaints by taking timely corrective measures to
redress the quality complaints.
6- To improve logistics facilities for our customers
dispatch program and issue all shipments delivery
documents well in time.
7- To make comprehensive arrangements for the training
of our workers technicians, managers.
8- To promote team work sense of transparency and
creativity in our professional and technical people.
Introduction
Shahkam textile mills is located at 23km multan road
Lahore. It was started in 1992. its total production is
exported out not a single piece is sold with in the country.
There are two local competitors Naveena textile and
Masood textile and international competitors Srilanka ,
China and India.
The whole textile industry is going to decline due to
political instability and terrorism and load shedding issues.
The competitive edge if the company is that they have
strong relation with the political regularity authorities and
they have their own yarn production so that they are able to
fulfill any order with sixty days.
The company has its own buying and purchasing
center in Lahore. They also operate in Faisalabad and
Sialkot. The financial crisis in USA is major setback for the
firm because the demand is affect regarding products and
other reason is lack of direct contact with the customer. The
firm has to first contact with India. The head office of
American Eagles, GAP, SPRING FIELD, is located in
India. As for the relationship is concern they personally
donot like to trade with Pakistan. Due to reason of terrorist
attacks in Mumbai the trade or relation with India is going
worst. So there is the problem of communication which is
creating problem for the industry as well.
And other SBU of Shahkam Textile is Shahkam sugar
mills.
`
History
Shahkam industries (Pvt.) Limited was founded in
1992as a small, family oriented Knitwear Factory with 200
employees and a production capacity of 2000 garments a
day. Over the years the Owners and Management have
actively participated in today operations and functioning of
the Company. Heavy levels of re-investment and expansion
have taken place in a series of a year. In 1996 Yarn dying
was added, in 1998 stripers were brought, and in 2002
stitching was expanded.
PEST Analysis
In PEST analysis we discuss the political , economical ,
technological and socio cultural forces which can effect the
industry.
Political forces:
At this level there is no favor has been so far provided to
textile industrialists. As for our international competitors
are concerned their government provide them many
incentives like export rebate, taxes relaxations etc.
As the result the textile industry is flourishing in
Bangladesh and in India. They are grapping the maximum
share of market.
Economical forces:
The financial crisis in USA and increasing inflation rate has
reducing the purchasing power of customer. Most of our
customers in USA divert to India and Bangladesh because
they have economy of scale in their product as far our
products are concerned.
Technological factors:
Technological changes affect many parts of the industry
now customers required the digital printings on shirts.
Shahkam textile has the latest technology (stypes shirts)
and anti chemical technology which save the human body
from allergic disease.
Socio cultural:
Industry analysis
Threats of new entrance
Shahkam textile has no threats of new entrance because the
whole industry declining due to financial crisis and energy
crisis.
There are many barriers to entry
1-capital requirement
A huge amount of capital is require to enter in this industry
so capital requirement is a big barrier for the new entrance.
2-Economy of scale
Existing firms have the economy of scale so it is difficult
for the new entrance to achieve the economy of scale in
such conditions where the whole industry is declining.
3-Product differentiation
Existing firms like shahkam have the strong brand image in
the international market as well in the mind of customers. It
is difficult for the new entrance to compete the industry in
such conditions where the competitors have the strong
brand image.
Retaliation of firms:
Shahkam, Masood, Naveena textile are the major
firms in textile industries there is net to net competition
among these firms so its difficult for new entrance and can
survive.
Industry analysis:
Following the study of industry forces the textile
industry has become an unattractive industry because it has
strong entry barriers. Bargaining power of suppliers and
customers are very high and firms face strong competition
on domestic and international level. These industry
characteristics make it very difficult for firms to achieve
strategic competitiveness and earn above average return.
Opportunity
1-they can deal in local market
Shahkam Textile can deal in local market to open
their outlets
2- Reducing cognitive dissonance
Textile can reduce the cognitive dissonance by
getting the USA customs Certificate (CTPAT)
3-Latest technology
It can acquire new technology related to digital
printing machines.
4-Expand in target marketing
They can expand their target market in Europe
because they just 5% trade in Europe and 95% in USA.
5-Advertisement
They can do promotion online to expand their target
market.
Threats
1-instable political system
Due to instable political system of Pakistan the foreign
customer hesitate to trade with Pakistan.
2-Terrorism
Due to the increasing threats of terrorism trade and
investment has effected in Pakistan.
3-International competitor
Bangladesh and India are the major competitors at
international level which is attracting the customers. Due to
stability of there countries and incentives given by the their
Govt.
4-constant change in industry
Due to the energy crisis and lack of Govt incentives
there is a constant change in industry
5- Government policies in different countries
Incentives like rebate on export are not given by the
Govt to the Textile industry in current situation.
6-Inflation
Financial crisis in USA effected badly and reduce the
buying power of our customers.
Internal Assessment
Strength:
1-Quality
We have a separate team of 400 Quality Personnel
who report directly to the CEO because Our Quality is our future.
2- Effective Information System
We at the Shahkam have extensive information and
experience of our client’s needs and requests and take special care
to fulfill them.
3-Market Relations
The management of Shahkam takes special pride in
their integrity not only with their buyer but also their suppliers. We
never right a claim that is above the actual cost price and have
always paid our suppliers on time and in a fair manner.
4-Techonological edge
43 stripers in all under one roof, 49 knitting machines,
mechanized calator knitting inspection machines, 97 flat knitting
machines including 12 special gauge collar machines.
5-Labour
Shahkam has a very strict code of conduct with regard
to its attitude towards labor. The owner of the company are fully
expected by the company itself uploads these rules and regulations.
6-Own Equity finance
Shahkam Textile is doing its whole business on Equity base.
7-ISO certified
Shahkam is certified ISO 9001 related to quality, ISO 14001
related to environmental issue.
8-Effective management
Shahkam Textile measures effectiveness and
efficiency of all level of managers and how it will achieve
appropriate objectives.
9-Loyal customer
In B2B market it has some major loyal customers in
USA like GAP (1500 outlets) and Hawk etc.
10-top ranking
Shahkam textile is top ranking firm of Pakistan Textile
industry.
Weakness
1-Spinning unit
Lack of Spinning unit as compare to its competitors
2-lack of energy resources
It has no alternative or self energy resources.
3-Weak R&D
In Pakistan there is no suitable research and development
system regarding to knitting industry.
4-No direct marketing
It is not dealing with USA customers directly lack of direct
contact with the customer. The firm has to first contact with
India. The head office of American Eagles, GAP, SPRING
FIELD, is located in India.
5-Lack of efficiency in solid garment
The firm has lesser machines regarding to manufacturing
solid garments and digital printing garments.
6-lack of innovation
Due to mechanistic culture and constant change in
industry there is no innovation in the firm.
Latest technology .1 3 .3
Advertisement .1 2 .2
Threats:
Terrorism .1 2 .2
International competitor .1 3 .3
Inflation .1 2 .2
TOTAL 2.9
Shahkam Masood
Critical success factors Weight Rating Score Rating Score
Price competitive .2 4 .8 4 .8
Product quality .2 4 .8 3 .6
Customer relation .1 3 .3 3 .3
Good will .1 3 .3 2 .2
Share of market .1 4 .4 2 .2
+4
+3 (
(1.34, 0.33)
+2
+1
CA -6 -5 -4 -3 -2 -1
IS
-1 +1 +2 +3 +4 +5 +6
-2
-3
-4
-5
Defensive -6 Competitive
ES
Copyright 2007 Prentice Hall
-
Ch 6 75
Financial Strengths:
1) The firm is doing its business on self equity finance based.
+5
Industry strength:
Total +10
Environmental stability:
Total -11
Competitive Advantage:
1) Best quality provider
-2
2) Concern for labour
-5
3) Firm has large customer base
-2
Total -9
FS+ES = 5+-3.66= 1.34
Strength Weakness
1-Quality 1-spinning Unit
2-Effective information 2-lack of energy
3-Market relation resources
4-Economy of scale 3-weak R&D
5-Labour 4-No direct marketing
6-Self finance 5-Lack of efficiency in
7-Effective management solid garments
system 6-Not serving Asian
8-Loyal customer market
9-ISO certified
10-Top ranking
Opportunity SO Strategy WO Strategy
1-Deal in local market S(6)O(1) New market W(5)O(3)
2-Reducing cognitive Development Using latest technology
dissonance to increase efficiency in
3-Latest technology solid garments
4-Expension in target
market
5-Advertisement
Tows matrix
Grand Strategy Matrix:
Quadrant2 Quadrant 1
Market Development
Weak Competitive
Strong Competitive
Position
Position
Quadrant 3 Quadrant 4
+20
?
+15
+10
+5
0 Pickle
s
-5
-15
-2
0 0
Chairman&CEO
Chairman
CEO
R&D Marketing
Strategy Evaluation:
NOTE 31-Dec
2007
DOLLARS
OPERATING EXPENSES
ADMINISTRATIVE 22 253601
SELLING&DISTRIBUTING 23 226446
OPERATING PROFIT 20977309
TAXATION 27 53326
PROFIT AFTER TAXES 20881332