Conten

PAKISTAN TEXTILE INDUSTRY..................................................................................................................................3

TEXTILE AS THE BACKBONE OF PAKISTAN ECONOMY:...........................................................................................4
NISHAT TEXTILE MILLS. LTD...................................................................................................................................5
History...................................................................................................................................................................5
Over the years........................................................................................................................................................5
TEXTILE CAPACITY..........................................................................................................................................5
EXPORT ORIENTED ORGANIZATION...........................................................................................................5
COMPANY INFORMATION...............................................................................................................................6
Plant location........................................................................................................................................................6
VISION & VISION STATEMENT..................................................................................................................................8
Vision statement....................................................................................................................................................8
Mission statement.................................................................................................................................................8
INPUT STAGE............................................................................................................................................................10
EFE MATRIX FOR NISHAT TEXTILE.............................................................................................................11
IFE MATRIX FOR NISHAT TEXTILE..............................................................................................................13
CPM (COMPETITOR PROFILE MATRIX)..........................................................................................................16
MATCHING STAGE..................................................................................................................................................18
SWOT MATRIX OF NISHAT TEXTILE................................................................................................................19
THE STRATEGIC POSITION AND ACTION EVALUATION (SPACE) MATRIX.............................................21
SPACE Matrix of Nishat Textile...........................................................................................................................21
THE SPACE MATRIX.............................................................................................................................................23
AGGRESSIVE STRATEGY..................................................................................................................................23
THE BOSTON CONSULTING GROUP (BCG) MATRIX.....................................................................................24
INTERPRETATIONS:..........................................................................................................................................26
THE INTERNAL-EXTERNAL (IE) MATRIX...................................................................................................27
INTERPRETATIONS:..........................................................................................................................................28
THE GRAND STRATEGY MATRIX.....................................................................................................................29
INTERPRETATIONS:..........................................................................................................................................29
DECESION STAGE...................................................................................................................................................31
THE QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM).................................................................32
INTERPRETATION:............................................................................................................................................33

PAKISTAN TEXTILE INDUSTRY

According to the textile ministry of Pakistan, export targets for the year 2012 are US $ 14 billion.
However exporters fear a shortage of 30% ($4 billion) in textile exports this year due to severe energy
shortage. So, Due to severe energy shortage, textile industry of the country is likely to miss export target
by US $ 4 billion during the current year.

TEXTILE AS THE BACKBONE OF PAKISTAN ECONOMY:

Textile sector is the backbone of Pakistans economy and contributes significantly to the export
sector. Pakistan is the fourth largest producer of cotton and third largest consumer. It contributes 8.5% to
the GDP and employs 38% of the workforce in the manufacturing sector. Its share to the total exports is
about 60%. It is ranked 12th in the global textile exports. Despite facing numerous challenges due to
persistent power crisis, high cost of doing business, poor law and order situation and host of other issues,
Pakistans textile exports managed to grow by 28% during the year 2010-11 as against the exports of last
year.
At present an unorganized part of weaving sector is producing comparatively low value added
grey cloth. The power loom sector employs poor technology; it faces scarcity of quality yarn and lacks
institutional financing for its development. The growth record of Pakistan's textile industry shows a
reverse trend, especially in the weaving capacity of the mill sector, in which the installed capacity of
looms shrunk from 26,000 in 1978-79 to only 8,000 in 2010-11. The organized sector seemingly made a
shift towards cotton spinning rather than make efforts to develop and modernize the weaving sector.

TEXTILES EXPORTS FROM PAKISTAN

Textiles constitute a major exporting sector for Pakistan, which accounts for about 60%of the
countrys total foreign exchange earnings. The major export items are yarn; gray Cloth, finished cloth,
towels and bed sheets and their major customers are the USA, EU, Japan and Hong Kong. Many textile
exports take place under quota arrangements With the EU and the United States. Gray cloth constitutes
roughly 16- 18% of total cloth.

NISHAT EXPORTS FROM PAKISTAN.

Nishat gray cloth exports account for roughly 20 % of Pakistani gray cloth exports. The firm has been
exporting to the USA for many years, and has only recently started to export to EU countries. In Pakistan,
the cotton crop season runs approximately from August to March. Prices are generally high at the start of
the season in August/September, and fall later on as supply increases. Following income tax law, the fiscal
year runs from October to September for textiles sector.

NISHAT TEXTILE MILLS. LTD

HISTORY
Nishat Mills Limited is the flagship company of Nishat Group. It was established in 1951. It is one of
the most modern, largest vertically integrated textile company in Pakistan. Nishat Mills Limited has
199,536 spindles, 604 Toyota air jet looms and 40 Sulzer shuttle-less looms. The Company also has the
most modern textile dyeing and processing units, 2 stitching units and Power Generation facilities with a
capacity of 89 MW. The Companys total export for the year 2011 was Rs. 35.610 billion (US$ 416
million). Due to the application of prudent management policies, consolidation of operations, a strong
balance sheet and an effective marketing strategy, the growth trend is expected to continue in the years to
come. The Company's production facilities comprise of spinning, weaving, processing, stitching and
power generation.

OVER THE YEARS

1951
1959
1961
1989
1992
1996
2005
2008

Nishat Mills Limited commenced its business as partnership.

The company incorporated as private limited company.
Nishat Mills Limited was listed on Karachi Stock Exchange.
The Company was listed on Lahore Stock Exchange.
The Company was listed on Islamabad Stock Exchange.
Acquired the operating assets of Nishat Tek Limited and Nishat Fabrics Limited.
Acquired the assets of Umar Fabrics Limited.
Acquired the assets of Nishat Apparel Limited.

TEXTILE CAPACITY
Production process consists of spinning, weaving, processing, and finishing. The processing includes
dyeing, engraving. The textile capacity of the group is the largest in the country. An addition of 20000
new spindles, 100 new air jets looms and new dyeing plant has increased the existing capacity of 24000
spindles, 740 looms and dyeing and finishing capacity of 5 million meters. The group is the largest
exporter of textile products from Pakistan for more than a decade.

EXPORT ORIENTED ORGANIZATION

Nishat mills limited are an export-oriented organization. Nishat mills limited exports more than 90% of its
products mainly to the Far East, Europe and United States.

COMPANY INFORMATION
BOARD OF DIRECTORS:

 Mian Umer Mansha Chairman/Chief Executive

Mian Hassan Mansha
Mr. Muhammad Nawaz Tishna (NIT)
Mr. Khalid Qadeer Qureshi
Mr. Muhammad Azam
Rana Muhammad Mushtaq
Ms. Nabiha Shahnawaz Cheema

MILLS:
Nishatabad, Faisalabad (Spinning units and Power Plant)
12 K.M. Faisalabad Road, (Weaving units & Power Plant)
Sheikhupura. 21 K.M. Ferozepur Road, Lahore. (Stitching unit)
5 K.M. Nishat Avenue (Weaving, Dyeing & Finishing unit,
Off 22 K.M. Ferozepur Road, Lahore. Processing unit, Stitching unit and
Power Plant)
20 K.M. Sheikhupura Faisalabad (Spinning unit)
Road, Feroze Watwan

PLANT LOCATION
Plant location is one of the main long-term strategic decisions normally taken by top management. Nishat
mills limited is ideally located in, Niashatabad Faisalabad.

12- K.M Faisalabad road Shiekhupura.

21- K.M Ferozepur road Lahore.
5 K.M Nishat Avenue Lahore.
Off 22.K.M Ferozepur road Lahore.
20-K.M Shiekhupura Faisalabad (ferozewatan)

Main factory is located at Niashatabad. It is a composite unit. Composite unit means all the process i.e.
from spinning to stitching takes place under one roof. Product process includes spinning, weaving,
processing, finishing and stitching units.

VISION & VISION STATEMENT

VISION STATEMENT
To transform the Company into a modern and dynamic yarn, cloth and processed cloth and finished
product manufacturing Company that is fully equipped to play a meaningful role on sustainable basis in
the economy of Pakistan. To transform the Company into a modern and dynamic power generating
Company that is fully equipped to play a meaningful role on sustainable basis in the economy of Pakistan.

MISSION STATEMENT
To provide quality products to customers and explore new markets to promote/expand sales of the
Company through good governance and foster a sound and dynamic team, so as to achieve optimum
prices of products of the Company for sustainable and equitable growth and prosperity of the Company.

MISSION STATEMENT ANALYSIS OF NISHAT TEXTILE

Components
Costumers
Products / services
Markets
Technology
Philosophy
Self-Concept
Concern of Employees
Concern of Public Image
Concern of public growth and profitability

No
No
No
No
No
No
Yes
Yes
Yes

INPUT STAGE

EFE MATRIX FOR NISHAT TEXTILE

KEY EXTERNAL FACTORS

WEIGHT

RATING

WEIGHTED
SCORE

OPPORTUNITIES
1) Organization can expand Product

0.10

0.3

line
2) Cost reduction by modern

0.06

0.24

0.09

0.27

0.08

0.16

0.09

0.27

0.08
0.07

4
4

0.32
0.28

0.08
0.05

3
2

0.24
0.1

0.04
0.05
0.06
0.07
0.08
1

2
3
4
3
4

0.08
0.15
0.24
0.21
0.32
3.18

Technology.
3) Capture new market segments
around the world.
4) Hire more well-educated and
experienced persons.
5) Organization can reduce the Cost by

proper utilization of Resources.

6) Local market development
7) People prefer quality fabric( quality
awareness)

THREATS
1) Export of raw cotton.
2) Exchange Rate Fluctuations.
3) Political instability.
4)
5)
6)
7)

Globally economic instability

Energy crises.
New entry of competitors.
Buyer needs changes.
Total

REASONING FOR THE WEIGHT:

The result for EFE matrix is 3.18 that is really good. That is showing they can effectively take advantage
of existing opportunities and can minimize the adverse effect of external threats
INTERPRETATIONS :

Opportunities:
Product Expansion: Currently the Nishat is not dealing in knitwear they can expand

their product line by producing knitwear. They have plants and the extra cost for the
production will be low for Nishat. And they also have better market repute.
Cost Reduction: If the cost of different matters which is not utilizing properly is
controlled by the Nishat management they can produce more in a few costs. It has to

develop a further systematic process for controlling and managing resources.

New Hiring: They can take advantages by hiring more skilled people and they should

hire young, fresh and energetic staff for their betterment.

R&D and Global Competition: Because of the research and development the design
and the product of Nishat is just satisfactory as compare to competitors globally and they

are not fulfilling the demand of customer.

Threats:
Political Instability: Political instability effects the Nishat because of the quota system

the company can be restrict by the government to export.

Unpredictable Government Policies: Government policies are changing day to day so it

is a threat for the Nishat to survive in such a changeable situation.

Economic Instability: Because of the economic instability the Nishat affected a lot.
Dumping system which is rising on daily basis in the world can create many problems for

the company and any uncertainty in the world like 9/11 may affect also the overall export.
Energy Crisis: energy crisis prevailing in the last five years is also creating a pathetic
situation even for the big giant like Nishat to survive.

IFE MATRIX FOR NISHAT TEXTILE

KEY INTERNAL FACTORS

WEIGHT

RATING

WEIGHTED
SCORE

STRENGTHS
1) Latest mechanized machinery.
2) Adequate financial resources.
3) Competitive advantage.
4 Equipped with MIS system

0.08
0.09
0.10

3
4
4

0.24
0.36
0.4

0.07

0.21

5) Own power generation plant.

6) ISO 9000 & IKO certified.
7) Biggest composite unit.

0.08
0.06
0.08

4
4
3

0.32
0.24
0.24

0.06
0.07

4
2

0.24
0.14

0.08
0.09
0.04
0.06
0.04
1

3
3
2
3
4

0.24
0.27
0.08
0.18
0.16
3.32

WEAKNESS
1) Centralized Decision making.
2) Weak image in International
market.
3) Lack of benefits & reward to
4)
5)
6)
7)

employees.
High employee turnover.
High production cost.
Small international market share
Less promotional activities.
Total

REASONING FOR THE WEIGHT:

For the matrix the average score is 2.5 and our score is 3.32 which really good so this good score
show a strong internal position of the Nishat textile. This means that the Nishat textile is above in its
internal strength.

INTERPRETATIONS:

Strengths:

ISO Certification: Nishat textile is certified under ISO9001-2000 and so it meets the
requirement of international standard and has a value in the mind of concern people.

Adequate financial resources.

Modern Technology: They are using modern looms which they have purchased from
Japan and France. And by using that latest machinery the productivity of the employees

are very high.

Business Giants: As we know that Nishat is a big giant in industry and they are enjoying
a competitive advantage. The owner of the Nishat is one of the richest persons of the
Pakistan and they have more plant and investment in other industries like cement, Bank,
They have adequate financial resources to meet their requirements. Because it is an old
textile and it has still keep its position in the textile market on all others competitors in the
nationwide which is its competitive advantage

MIS management: They have a management information system by which the

departments and employees are connect with each other and they have a data ware house

by which they can share their resources easily.

Power Generation: They have own power generation plant and Nishat is the pioneer in
the private organization who start the power generation. And also selling to the WAPDA
Its produced power.

THREATS:

Centralized Decision Making: The decisions are made by the upper management which
is weakness of the Nishat because they have no proper idea about the situation and their

decision can be not fruitful for the company.

Scarce Resource Availability: Because of the other textile specialized countries like
China, Bangladesh etc. the international image in the textile sector is very weak. Those
countries providing cheap product to the market than Pakistan textile industries because

of the resource availability and cheap raw materials.

Small Market Share: Although Nishat has very strong in the national wide but it has
small market share in the global textile industry due to the sound competitors like china,

and Bangladesh etc.

Weak Promotional Strategies: The advertising and promotional cost of the Nishat
textile is very low it can take advantage for more turnouts.

Weak Reward system: Some facilities that other providing to their employees like
Transport and medical fee etc. Nishat not providing to their employees because of which
the productivity of the employees decrease.

CPM (COMPETITOR PROFILE MATRIX)

Critical Success
Factors

Nishat
Textiles

Kohinoor
Textile Mill

Weight

Rating

Scores

Rating

Scores

0.30

0.9

1.2

Global Expansion

0.05

0.15

0.2

Market Share

0.05

0.10

0.15

Pricing

0.10

0.4

0.3

Conformance to
standard

0.30

1.2

0.9

0.10

0.30

0.2

0.05

0.20

0.15

0.05

0.15

0.2

Customer
Satisfaction

Promotional
Activities

Persuasion
Organizational
involvement of
employees
Total

1.00

3.4

3.3

EVALUATION

As we know that competitive profile matrix identifies firms major competitors and its
particular strengths and weaknesses in relation to a sample firms strategic position.
Comparisons been made on the basis of the strengths and weaknesses encountered by
careful in depth analysis of competing firms. We have grouped the strengths and weaknesses
of existing firm Nishat mills in order to compare the ratings and weighted scores with its
rivalry potential firm Kohinoor textile mills. This comparative analysis provides important

internal strategic information.

In our case the two most important factors to being successful in industry are gaining and
maintaining Customer Satisfaction and Quality as indicated by weights of 0.30. As
satisfaction of prospective customers plays vital role in enhancing the sales and building
reputation of the firm and Quality provides as a means of excellence in the product or

service that fulfills or exceeds the expectations of the customer.

Nishat mills is strongest on maintaining quality control standards under the ISO stated
standards and is indicated by the rating of 4 whereas the competitor firm is a step behind in

adapting to ISO quality management systems .

The company has a diverse customer base with sales in both the local and export markets.
The main international markets include Asia, Europe, USA and Australia. Kohinoor has a
diversified customer base because of its association and partnership with most of the top
leading brands of the world which has strong persuasion and brand image in market place.
Zara, old navy , champion , Dockers ( san Francisco ) , wrangler, Levi Strauses signature,
banana republic, Yakka ,Li & Fung Limited, Jc Penney ( everyday matters ) , Dickies, fruit
of the loom, Payless (shoe source). Kohinoor is strongest in retaining more customers and is
strongest on customer satisfaction indicated by rating of 4 as compare to Nishat with rating

of 3.
Overall Nishat is strongest as indicated by the total weighted score of 3.4

MATCHING STAGE

SWOT MATRIX OF NISHAT TEXTILE

STRENGTHS____S

OPPURTUNITIES____O
Organization
can
expand its product
line
Cost reduction
Cotton cloth export
also export also
increased to $1.13
billion during this
period as compared
to $1.03 billion in
2000-01. The future
in the UAE markets
appears promising
Capture new market
segments
around
the world
Local
market
development
Organization
can
hire
more
experienced
trainers and skillful
employees
Government could

Latest mechanized
machinery
adequate financial
resources
Competitive
advantage
own power
generation plant
ISO 900 and IKO
certified
Biggest composite
unit
Equipped with MIS
system

SO STRATEGIES
Technical filtration with the
help of Nishat's mechanized
machinery can help the
company achieve expansion
i-e through expanding its
current product line.
(S1, O1)
Nishat can gain competitive
edge through cost cutting by
the proper utilization of
financial resources.
(S2,O2)
Using the company's
competitive advantage over
other firms Nishat can focus
on local market development
as well as capture new
market segments around the
world. (S3,O5,O4)

WEAKNESS____W
Centralized decision
making
Weak image in
international market
Lack of benefits and
rewards to
employees
High employee
turnover
Small international
market share
Less promotional
activities
High production
cost
WO STRATEGIES
Competitively capturing new
market segments will result
in strong market image
internationally
(W2,O4)
Organization can reduce
operating cost by considering
employees suggestions and
providing both financial and
non-financial benefits hence
boosting up the morale
which in turn increase
employees motivation
(W3,O2)

apply
sustainable
policies
for
the
interest of exporters
and investors

THREATS___T
Buyers need change
Political instability
Global economic instability
Export of raw cotton
Energy crises
Entry of new competitors
Exchange rate fluctuation

ST STRATEGIES
By capitalizing on the
latest mechanized
machinery Nishat can
effectively meet the
changing needs of its
buyers
(S1,T1)
Keeping in mind Nishats
competitive advantage and
reputation in the textile
industry new entrants
would find it a big risk and
will be hesitant before
entering the industry so
sustainable competitive
advantage would be best
policy here
(S3,T6)
Keeping in view the energy
crises Nishat set up an
independent power plant
which allows automation
and uptime flexible
production of products
(S4,T5)
Nishat is a trendsetter with
adequate financial
resources which facilitates
it to introduce innovative
strategies that can meet the
changing demands of the
customers
(S2,T1)

WT STRATEGIES
By focusing on strong brand
endorsement by international
and national models to gain
customer loyalty in order to
minimize the risk of new
entrants
(W6,T6)
Government should develop
conducive policies and
appropriate measures should
be taken such as TQM
programmers and, to ensure
that standardized products
are being produced
(W2,T2)
Employees should be
appreciated by the
organization and supervisors.
Employee recognition
programs should be
introduced in the
organization. Such plans can
motivate employees not to
just work for the sake of
money but also for their
learning experience.So the
employees will be
encouraged to work which in
turn decrease turnover rate.
(W4, T3)

THE STRATEGIC POSITION AND ACTION EVALUATION (SPACE)

MATRIX.

SPACE MATRIX OF NISHAT TEXTILE

FINANCIAL POSITION (FP)

INDUSTRY POSITION (IP)

Return on Investment.
Liquidity.
Leverage.
Working capital.

Resources utilization.
Growth potential.
Financial stability.
Profit potential.

3
4
4
2
13

STABILITY POSITION (SP)

Rate of inflation.
Barriers to entry into market.
Technological changes.
Price range of competing products.
-10

4
3
4
5
16

COMPETITVE POSITION (CP)

-3
-2
-2
-3

Product quality.
Market share.
Technological knowhow.
Product lifecycle.

-3
-1
-4
-4
-12

CONCLUSIONS
SP average is
-10/4 = -2.5
IP average is
+16/4 = 4
CP average is
-12/4 = -3
FP average is
+13/4 = 3.25
Directional Vector Coordinates:
x-axis: -3 + (+4) = 1
y-axis: -2.5 + (+3.25) = 0.75

THE SPACE MATRIX

CONSERVATIVE
Market penetration
Product development
Market development
Related diversification
-6 -5
DEFENSIVE
Retrenchment
Divestiture
Liquidation

-4

-3

-2

AGGRESSIVE
5
Backward, forward, horizontal integration
4
Market penetration
3
Market development
2Product development
1
Diversification (related or unrelated)
0
-1
0
1 2
3
4
5
6
-1
-2
COMPETITIVE
-3
Backward, forward, horizontal integration
-4
Market penetration
-5
Market development
-6
Product development

This graph shows that Nishat textile is in the third quadrant which is aggressive strategy
quadrant.

AGGRESSIVE STRATEGY
Nishat textile directional vector is located in the aggressive quadrant (upper-right quadrant) of
the SPACE matrix, Nishat is in an excellent position to use its internal strengths to
(1) Take advantage of external opportunities,
(2) Overcome internal weaknesses, and
(3) Avoid external threats.
Therefore, market penetration, market development, product development, backward integration,
forward integration, horizontal integration, or diversification can be feasible.

THE BOSTON CONSULTING GROUP (BCG) MATRIX

No of
division

Description

Revenues

%Revenues

Profits

%pr
ofits

Marke
t share

Relative
market
share

Growth
rate

Nishat
textile

Rs.48565

62.2

4844

43%

80.2

0.8%

53.99%

DGKCC

Rs.18577

23.8

171

1.5%

40.3

0.4%

14%

Power
plant

Rs.10902

13.9

6295

56.4
5

70.1

0.7%

-88%

Rs.78,044

100

Rs.11156

100

Total

Market Share
High
Low
Stars

Question Mark

Cash Cow

Dogs

High

Industrial
Growth

Low

INTERPRETATIONS:
Nishat Textiles is a composite textile unit of Nishat Group. Total number of players in the
industry is 60, and Nishat Textiles is the market leader. It captures 12% market share as a whole.
In 2011, the industrial overall growth rate is 11%, but that of Nishat Textiles is 24% as compare
to the sales of 2008.
Source: KSE (Karachi stock exchange) data for 2011, and 2012.
The industrial growth is high and Nishat Textiles has high market growth as well. So, it lies in
the first quadrant (Stars) of the BCG matrix. It implies that, company has the opportunity to go
for Market penetration to capture more shares in the existing market by using new technology,
and increasing promotional activities. It also has a tremendous option of local market
development.
Other feasible strategies may be the backward integration to secure the supplies in order to tackle
with the threat of exporting of local raw material to foreign markets. Also Nishat Textiles goes
for forward integration to minimize its weakness of transit time of goods and services to its
customers.

THE INTERNAL-EXTERNAL (IE) MATRIX

IFE TOTAL SCORE
ABCD-

High
EF3.0-4.0
GHIJMedium
EFE
TOTAL
2.0-2.99
SCORE

Strong 3.0-4.0

Moderate 2.0 2.99

Low 1.0- 1.99

II

III

Grow and Build

Grow and Build

Hold and Maintain

IV
Grow and Build

V
Hold and Maintain

VI
Harvest

VII

VIII

IX

Hold and Maintain

Harvest

Divest

KLMNOPQRSTULow
V-

1.0-1.99

INTERPRETATIONS:
IFE Total Score (As per IFE Matrix) = 3.18
EFE Total Score (As per EFE Matrix) = 3.32
WAs per IE Matrix, Nishat Textiles lies in first cell, which implies that it should go for aggressive
strategies that are grow and build strategies. The possible strategies for Nishat Textiles may be
the integrations, intensive, and diversifications.
Nishat Textiles has the opportunity to go for intensive strategies to capture more shares in the
existing market by market penetration, market development and product development.

Other feasible strategies may be the backward integration to secure the supplies in order to tackle
with the threat of exporting of local raw material to foreign markets. Also Nishat Textiles goes
for forward integration to minimize its weakness of transit time of goods and services to its
customers.

THE GRAND STRATEGY MATRIX

Rapid Market Growth
Quadrant II

Weak
Competitive
Advantage

Quadrant III

Quadrant I

Quadrant IV

Strong
Competitive
Advantege

Slow Market Growth

INTERPRETATIONS:
Total number of players in the industry is 60, and Nishat Textiles is the market leader. It captures
12% market share as a whole. In 2011, the industrial overall growth rate is 9%, but that of Nishat
Textiles is 24% as compare to the sales of 2008.NML got the edge of having their own power
plant due to that they are not suffering from industrial power crisis. And sustaining their position
in Market.
As the market growth is high, and Nishat Textiles has strong comparative position in the market.
So, it lies in the first quadrant of Grand strategy matrix, which implies that it should go for
aggressive strategies. The possible strategies for Nishat Textiles may be Market Development,
Market Penetration, Backward and Forward Integrations. And Nishat is also implementing these
strategies by developing their market in a combination with forward integrations by opening

their retail stores named Nishat Linen. They are also going in cotton production which is also a
competitive edge as they are controlling the whole supply chain. And implying with quality
sustainability to cope up with ISO standards.

DECESION STAGE

THE QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM)

Capturi
ng new
market
segme
nts
around
the
world

Develop
a shoe
line for
women

Key factors
OPPORTUNITIES
1) Organization can expand Product line
2) Cost reduction by modern Technology
3) Capture new market segments around the
world
4) Hire more well-educated and experienced
persons:
5) Organization can reduce the Cost by
proper utilization of Resources:
6) Local market development:
7) People spend on quality fabric
THREATS
1) Export of raw cotton.
2) Exchange Rate Fluctuations
3) Political instability
4) Globally economic instability
5) Energy crises
6) New entry of competitors
7) Buyer needs changes

TOTAL
STRENGTHS

Weight

AS

TAS

AS

TAS

0.10
0.06
0.09

4
1

0.4

1
4

0.10

0.08

0.09

0.08
0.07

3
1

0.08
0.05
0.04
0.05
0.06
0.07
0.08

2
2
3

1.00

0.09

0.24
0.07

2
3

0.08
0.1

2
2
2

0.24

0.36

0.16
0.21

0.08
0.1

0.16

1)
2)
3)
4)
5)
6)
7)

Latest mechanized machinery

Adequate financial resources
Competitive advantage
Equipped with MIS system
Own power generation plant
ISO 9000 & IKO certified
Biggest composite unit

WEAKNESSES
1) Centralized Decision making
2) Weak image in International market
3) Lack of benefits & reward to employees
4) High employee turnover
5) High production cost
6) Small international market share
7) Less promotional activities
TOTAL
Sum Total Attractive Score

0.08
0.09
0.10
0.07
0.08
0.06
0.08

2
4
3
-

0.06
0.07
0.08
0.09
0.04
0.06
0.04
1.00

1
3
1
-

0.16
0.36
0.3

0.07

0.12
0.06

2.29

2
4
3
4
3
4
-

0.16
0.36
0.3

0.28

0.12
0.24

2.63

INTERPRETATION:
The two strategies that are considered by Nishat are achieving expansion through expanding
product line and Capturing new market segments around the world. According to Sum of Total
Attractive Score the company should go for capturing new market segment around the world as
its STAS is 2.63.
The attractive score are given on the basis of how much these factors affect the strategy. the more
they effect the higher the score is given. the highest score given is 4 mean the factor is highly
attractive to the strategy.
Nishat can expand product line by developing a shoe line for women so it is highly effective
strategy so it has been given a score of 4. But by entering into international market Nishat is not
expanding the product line so a score of 1 is given. By entering into international market Nishat
will be able to capture international market therefore has been given a score of 4.
The strengths and threats almost effect both the strategy equally as both requires financial
resources and machinery to be implemented. These both strategies if successfully implemented
can lead to competitive advantage but of course only these two strategies cannot gain

competitive advantage but they can help in gaining competitive advantage that is why they have
been given the score of 3. Financial resources is needed to develop new product line and is also
needed to enter into international market that is why it has been given a score of 4. Threats of
political instability, global economic instability somewhat effect the both strategy equally and
buyers need change effect the strategy of developing a new product line so has been given a
score of 3.
Weak image in international market and small international market share are affected by the
strategy of entering into international market that is why they have been given a score of 4 and
4.The strategy of entering into international market is a attractive strategy for Nishat to pursue.