Company overview:

Nishat group of industries in one of the most important group in Pakistan with the asset of more
than 300 billion rupees. This is the fifth largest group in Pakistan. This group has a strong
command in four sectors named as banking, cement and textile industries and management. The
chairman of the group main Muhammad Mansha one of the richest Pakistani and in 2007 had
been awarded with the highest civil award by Pervaiz Musharraf. Nishat Mills Limited is a
public company operating in Pakistan and is listed on all three Pakistani stock exchanges. This
company is engaged in textile manufacturing including weaving bleaching, spinning, combing,
stitching, dyeing, printing and buying, and selling of textiles. The company is providing high
quality products to all its customers not only within the Pakistan but outside as well.

 Mission statement:

Mission statement of this particular company is to provide the quality products to all its valuable
customers and depending upon its high quality products to discover new markets and to expand
sales of the company through good governance and energetic management. The basic purpose is
to achieve lower prices of quality products so that company’s growth and prosperity can be
enhanced.

 Vision statement:

The vision statement describes that company wants to become the leader in the specific industry
by making over itself into a processed cloth, modern and dynamic yarn and finished product
manufacturing company with latest technology, highly professionals and fully equipped to play a
meaningful role on sustain able basis in the economy of Pakistan.

Pest Analysis:

Macro environmental forces may disturb or affect any company in the world. These forces called
pest stands for political, environmental, social and technological.

 (P)olitical factors:

Due to the unsustainable political and legal factors of Pakistan the current situation is not
satisfactory for this industrial giant. Changing in the government after every 2 or 3 years is a big
issue and after that every government implements its own trade policies which are great
problems. Government should apply sustainable policies for the beneficial of the exporters as
well as the investors.

 (E)conomic situations:

The global economic recession also put the negative impression on the economy of Pakistan and
disturbed it badly. Prices of the commodities have gone up and which minimise the people
purchasing power. The economic condition of Pakistan is not good as well. Inflation rate is
increasing rapidly and the high cost of production not attracting the foreign investors and thus
reduce the profit margin of the investors and the stakeholders as well.

 (S)ocial change:

Rapidly increasing inflation rate has disturbed the lifestyle of the people and hence has affected
the growing demand of the nishat textile mills (NTM) products. So this is another important
factor which is disturbing the nishat mills products because people life style has changed a little
bit.

 (T)echnological situation:

As the advanced technology is being used by every company in the world. It just disturbed a
small portion of the industry but the NTM has very good equipments imported from different
countries. So position from technological point of view is satisfactory as compared to the others.

Swot analysis:

The SWOT analyses are of great importance and helps in decision-making for all sorts of
situations in business and organizations. The swot analysis for nishat mills limited is as follows.
(Kotler et al…2005) “SWOT is a practice which helps to analyse the internal and external
environments of an organisation through the classification and judgement of its Strengths,
Weaknesses, Opportunities, and Threats. SWOT analysis shows an image of the results of an
internal and external audit which draws attention, from a strategic point of view, to the
organisations critical strengths, weaknesses, the opportunities and threats facing the
organisation.”

 (S)trengths:

1) ISO 9001-2000:

Nishat textile has the certification of ISO 9001-2000 which means its quality standards are its
major strengths and hence it also fulfils the requirement of international standard and has a great
importance in the industry internationally as well.

2) OKTEX 100:

Nishat also has the certification of oktex100 with itself which insures that it doesn’t use any
harmful chemicals.

3) Computerized machinery:

This textile giant is using the latest technology for the production of the highly quality products
which also enhances the production capacity of employees.

4) Skilled management:
The highly skilled management from all over the country has been hired by Nishat and especially
the foreign graduate people in their management contributing a lot in the success of the NTM.

5) Financial position:

The owner of the NTM is one of the richest people in Pakistan and has the adequate financial
resources which mean the back of the NTM is very strong.

6) MIS:

NTM is fully equipped with the management information system through which the employees
and various departments are connected with each other and share the data with the top
management. So it is a very appreciable system.

7) Power generation plant:

The electricity power is a very immense issue in Pakistan so NTM has its own power generation
plants and producing the power not for itself only but also selling it to the WAPDA.

 (W)eaknesses:

1) High production cost:

The resources are not being use properly and due to the economic crisis the rates are going up
rapidly and hence cost of production is increasing as well.

2) Bureaucratic organisation:

Another weakness is the bureaucratic environment within the organisation. The upper
management takes all decision ignoring the employee’s suggestions.

3) International market:

NTM has week international market because of china that is very well known in the cost
reduction and creating a big problem in the industry for the NTM internationally and the market
share price has gone down as well.

4) Employee benefits and rewards:

Nishat is not providing any kind of benefits or rewards even the medical allowance and transport
facilities are not given to their employees and this put the productivity down and therefore there
is the lack of motivation in the NTM.

 (O)pportunities:

1) Product expansion:
The very important opportunity for the nishat mill is that it should expand its products in the
form of knitwear. As NTM has plants, good market position and strong financial back so it
should avail this opportunity by dealing in knitwear.

2) Low cost production:

The NTM should use the resources in a good way so that the production can be reduced to a
great extent and can maximum the profit ration.

3) International market:

NTM should take the benefits of global recession and has a chance to increase its market share
price internationally.

 (T)hreats:

1) Political instability:

This is the threat which cannot be ignored due to the current circumstances of Pakistan and the
export of the products may affect in account of this.

2): Government policies:

As the political instability is in Pakistan and every new government imposes its own rules and
regulations and especially the sudden increment in the taxes is not affordable for the NTM.

3) Buyer needs changing:

The NTM has a great threat from international market because of its satisfactory design and
competitors providing the latest ones which can put the NTM reputation down.

4) Global instability:

The global instability is still in operation for this industry. Any unusual incident can happen as
9/11 was happened so still that kind of threats are able to disturb the company performance.