Strategic Management Process of Kohinoor Textile Mills

Starting With the Name of ALLAH (S.W.T)

Page 1

Strategic Management Process of Kohinoor Textile Mills

DEDICATED
to the blessings of Allah(S.W.T) who is the biggest source of Knowledge, his Messenger and the Teacher for the whole world The Prophet Muhammad(P.B.U.H), to our beloved parents and all respected teacher

Page 2

Strategic Management Process of Kohinoor Textile Mills

DECLARATION
We hereby declare that this project report, neither as a whole nor as a part thereof has been copied out from any source but in-fact if any material has been used, it is used as the concept of original material taken from the web and all other references are mentioned for subsequent sections. It is further declared that we have completed our work on the basis of our personal efforts and under the sincere guidance of our teacher. If any part of this work is proved to be copied out from any source. We shall standby the consequences. No portion of the work presented in this report has been submitted in support of any application for any other degree or qualification of this or any other university or institute of learning.

Page 3

Strategic Management Process of Kohinoor Textile Mills

ACKNOWLEDGEMENTS
We bow our heads in deep gratitude before Allah Almighty for Blessing us with the wisdom and the capability and granting us the strength to accomplish this project. We are extremely grateful to our beloved parents for catering to all our needs, affording every facility, consoling us when we were fatigued, inspiring us when we started feeling that the project was getting beyond our grasp and praying day in and day out for our success. We are indeed also very appreciative of the contribution of our younger sisters and brothers who provided us the vigor and vitality and shared all our responsibilities towards our respective family during the course of this project. We are very thankful to our kind and competent supervisor, Mr. Salman Maalik for taking the time off his busy schedule in providing us the guidance and according us all the help right from the tricky stage of laying down the conceptual framework to the far more exacting stage of actual execution of this project. We are also thankful to all the employees of the Kohinoor Textile Mills for their kind cooperation.

Page 4

Strategic Management Process of Kohinoor Textile Mills

BACKGROUND OF STUDY
The global scenario that has emerged in the past few years has completely revamped the way business was conducted. Now companies have to take all the foreign competitors in account if they want to survive. Local manufacturers, which were at the beginning only concerned themselves with competitors emerging from the local market, are now struggling to make the place in face of international competition. Textile has always been among the solid industries of Pakistan, this emergence of global competition has also affected Pakistan. Kohinoor Textile has accepted the challenge from global competitors and has operated so efficiently throughout its career that it is not only among the strongest of textile groups locally but also a renowned name internationally, which exports yarn and garments to a considerable extent.

PURPOSE OF STUDY
The prime purpose of the study is to gain knowledge and practical field experience, by knowing that how do the strategic management process is actually implemented in an organization. Moreover we want to know how to make strategies in unseen circumstances.

SCOPE OF STUDY
The scope of this particular study and documented report is confined only to the Kohinoor Textile Mills Rawalpindi

LIMITATIONS OF STUDY
Kohinoor Textile is a very large organization with dozen of factories and offices throughout Pakistan. It would have been impossible for us to cover all of the organization in mere eight weeks, as it requires considerably large period of time. Furthermore, business organizations are very secretive, guarded and reserved when it comes to sharing their business functioning in all facts i.e. financial, Marketing, Human Resource etc. It requires a lot of guile and astute inquiry, not to mention personal contacts in the management of organizations, to get access to confidential or in some cases in non-confidential information. Managers and employees were very hesitant in providing us organizational information (not letting us directly interview frontline workers, strictly restricting video and voice recording interviews as being against their organizational policies) and we had to go through a tedious process to get adequate and sufficient information and we did our best with it.

Page 5

Strategic Management Process of Kohinoor Textile Mills

METHODOLOGY OF STUDY
I have completed my study with the aid of following data collection tools.
PRIMARY DATA

Data compiled for the first time is called primary data. The main sources of primary data are my personal observations and my discussion with the management and staff members.
SECONDARY DATA

Data Collected and compiled before hand for some purpose is known as secondary data. The main sources for secondary data are annual reports, website of Kohinoor Textile Mills (www.KMLG.com) and office records.

Page 6

Strategic Management Process of Kohinoor Textile Mills

TABLE OF CONTENTS
Chapter#01(INTRODUCTION)09 Group History Kohinoor textile mills International customers Chapter#02(MISSION AND GOALS)..15 Mission and Vision Statement Statement of strategic objectives Statement of Ethics and Business Practices Values Chapter#03(INTERNAL AND EXTERNAL ANALYSIS)..19 SWOT analysis IFAS EFAS PORTER 5 FORCES ANALYSIS Chapter#04(LEVEL OF STRATEGIES)...25 Global Level Strategy Corporate Level Strategy Business Level Strategy Functional Level Strategy Chapter#05(ORGANIZATIONA STRUCTURE)28 Information about top level management Organizational Structure Chart Chapter#06(RECOMMENDATIONS)..31 Recommendations Conclusion APPANDIX REFRENCES

Page 7

Strategic Management Process of Kohinoor Textile Mills

EXECUTIVE SUMMARY
This report is based on the course of strategic management, which focuses on various strategies of organizations in both preplanned situation and in a totally unpredicted environment. We, as a study group and students of MBA, conducted a research on a big name in the textile industry of Pakistan and studied their strategies and know how Kohinoor deal with its internal and external environment and completed this project. Although the company representatives were very reluctant to share and impart information about their organizations (based on their organizational policies) but we did the best we could to convince them. In the first section, a little back ground about the company is given, to provide an insight to the reader about the scope of the company. The main body of the report entails all the details about the working environment and conditions of the company in both local and international environment and the varying standards and procedures (big or small). Well this project became so interesting when we got to know that Kohinoor has to deal with a situation where its competitors are its customers and more over when we know that it does not have the same strategy for all its products. It was also very surprising to know that textile output of Pakistan is now not of very good quality international the competition has became so intense and Pakistan has lost its good international reputation in textile industry. The last part of this report contains a brief conclusion and the recommendations section to display the knowledge we have gathered and interpreted based on our knowledge and wisdom.

Page 8

Strategic Management Process of Kohinoor Textile Mills

CHAPTER #

01

KOHINOOR TEXTILE MILLS

Page 9

Strategic Management Process of Kohinoor Textile Mills

GROUP HISTORY
The Kohinoor Maple Leaf Group, formerly known as the Saigol group represents the golden era of history of industrial and commercial development in Pakistan, In 1947 when Pakistan gained independence there was hardly any infrastructure in Industry, Commerce and Banking. The field for development was wide open. Within a span of few years the Saigol Group helped to transform the Industrial and Business scene in Pakistan. The Group established industrial projects in the field of textile mills with spinning, weaving and finishing facilities, a chemical complex producing insecticide, caustic soda, and chlorine and acetate rayon yarn, a sugar refining unit, vegetable oil and paper mills. The group also entered into the field of construction, engineering and banking. Prior to Nationalization of the private sector industries in the early 1970s, the group was one of the largest in Pakistan. The Kohinoor Maple Leaf Group was born from trifurcating the Saigol group in 1976. It is now leading textile manufacturer in the country consisting of one composite textile unit, two weaving and one spinning unit. The Group is also involved in other industrial activities including cement and power generation.

KOHINOOR TEXTILE MILLS LIMITED

COMPANY PROFILE
Kohinoor Textile Mills Limited was established in 1953, initially with 25000 spindles and 600 looms with further expansion in 1954. The company embarked upon a program of modernization and in the last decade, replacement and refurbishment has seen the installation of high technology processing, printing and finishing facilities. Commercial processing of customers, which was not originally envisioned, has also begun. Presently the unit comprises 151,856 1spindles along with complete processing capabilities for scouring and bleaching, mercerizing, dying printing and stitching. Weaving no longer exists at the plant which has since been relocated to two sister companies Kohinoor Weaving Mills and Kohinoor Raiwind Mills (A Division of Kohinoor Textile Mills Limited). Plant is located at Peshawar Road Rawalpindi. The spinning plant has equipment from Crosrol U.K. and Japan. The companys products are sold in both local and export markets. Regular exports sales to South East Asia, U.K. / Europe, USA, Hong Kong, Japan and Australia are a testimony to an ever growing list of satisfied customers who perceive KTML as a manufacturer of quality textile. In 1992, the company participated in

Page 10

Strategic Management Process of Kohinoor Textile Mills

the acquisition of Maple Leaf Cement Factory Limited from Privatization Commission, Government of Pakistan. Kohinoor Textile Mills Limited was initially certified to ISO 9001 by Lloyds Register Quality Assurance, UK on December 16, 1998. Now Kohinoor Textile Mills Limited is certified under the revised ISO standards ISO 8000 from June 2003.

VISION 2000
In 1996 KMLG recognized its companies need to sufficiently prepare themselves to face international competition. In part due to reductions in tariff levels and the opening up of the Pakistani economy, being a contractual obligation under the new trading rules envisioned under the World Trade Organization. Consequently in January 1997 management embarked upon an ambitious Vision 2000 program. The Vision 2000 program is geared to ensure group companies and stake holders are prepared to meet the challengers of the new millennium. This shell be achieved through improved human resources; production to international standards and specifications; enhanced technical efficiency; reduction in waste and higher profitability leading to a better return to its stakeholders. To attain the stated objectives under the Vision 2000 program, the already existing finance central function has been strengthened plus three new central functions have been added. These new functions are Quality Systems, Information Technology and Human Resources. To ensure top management commitment to the program an Executive Committee was constituted to formally review the progress towards the stated objectives and to concurrently monitor the performance of Group companies. Key responsibilities for the Vision 2000 team have been defined and include upgradation, modernization and restructuring of the management systems and procedures of Group companies. As part of the Vision 2000 program all companies have now attained ISO 9000 Quality Assurance. Management recognized the difficult road ahead to meet the objectives of its Vision 2000 program and had given its highest priority and full commitment to achieve its stated objectives. In the financial year 2010 the company has reported the revenue from external customers as follows,

Page 11

Strategic Management Process of Kohinoor Textile Mills

The Companys revenue from external customers by geographical location is detailed below, 2 2010 2009

(Rupees in thousands) Europe America Asia, Africa, Australia Pakistan 16, 64,667 40, 40,326 7, 99,050 41, 89,295 1, 06, 93,338 17, 14,770 34, 07,655 3, 65,008 9, 71,466 84, 58,899

Sales
16%

39%

Europe America Asia,Africa,Australia Pakistan 38% 7%

Page 12

Strategic Management Process of Kohinoor Textile Mills

INTERNATIONAL CUSTOMERS U.S.A
Banana republic LEVIS Tommy Liz Claiborne Arrow K-Mart GAP Target VF Haggar Wal-Mart White Stag

Europe
Next Zara C&A Hema Rose by Farah UK Amadues Jeans Mango Brushka British Home Store Carrefour French Connection Tema

Australia
Yakka Charles Parsons King Gee Farah

South Africa:
Wools Worth

Page 13

Strategic Management Process of Kohinoor Textile Mills

COMPANY AT THE GLANCE3

DESCRIPTION
Commencement year Chairmen No. of Spindles Processing of cloth Spinning Certification Electricity Generation No. Of Employees Exports(2010) Profit (2010) IRR(2010) Earnings Per Share(2010) Provision for taxation(2010)

CURRENT POSITION
1953 Mr. Tariq Sayeed Saigol 151902 41975 Meters 85680,000 kg ISO 9001,ISO 8000 10MW 2048 $85M 277867000 Rs. 15-17% 1.91Rs. 98587000 Rs.

To conclude we can say that Kohinoor textile mill is among one of the splendid examples of the companies that played an important part in the economy development of the country.

Page 14

Strategic Management Process of Kohinoor Textile Mills

CHAPTER #

02

MISSION AND GOALS

Page 15

Strategic Management Process of Kohinoor Textile Mills

MISSION STATEMENT1
The company shall achieve its mission through a continuous process of having
sourced, Developed, Implemented and Managed the Bes Leading Edge Technology, Industry Best Practice, Human Resource and Innovative Products and Services and sold these to its customers, suppliers and stakeholders

VISION STATEMENT2
The Kohinoor textile mills limited stated vision is to achieve and them remain as the most progressive and profitable company in Pakistan in terms of industry standards and stakeholders interests

STATEMENT OF STRATEGIC OBJECTIVES (2010-2011)3

Following are the main principles which constitute the strategic objectives of Kohinoor Textile Mills Limited: 1. Effective use of available resources and improved capacity utilization of the Company's production facilities 2. Modernization of production facilities in order to ensure the most effective Production; 3. Effective marketing and innovative concepts; 4. Implementation of effective technical and human resource solutions; 5. Strengthening independence in terms of secure supply of low-cost services and Resources, including energy supply, transportation and logistics services; 6. Explore alternative energy resources; 7. Further improvements in corporate code governance through restructuring of Assets and optimization of management processes; 8. Personnel development, creating proper environment for professional growth of Highly skilled professionals, ensuring safe labor environment, competitive staff Remuneration and social benefits in accordance with scope and quality of their Work; 9. Compliance with local and international environmental and quality Management standards, implementation of technologies allowing complying With the limitations imposed on pollutant emissions; and 10. Implementation of projects in social and economic development of Communities

Page 16

Strategic Management Process of Kohinoor Textile Mills

STATEMENT OF ETHICS AND BUSINESS PRACTICES (2010-2011)4

The following principles constitute the code of conduct which all Directors and Employees of Kohinoor Textile Mills Limited are required to apply in their daily work And observe in the conduct of Company's business. While the Company will ensure that All employees are fully aware of these principles; it is the responsibility of each employee to implement the Company's policies. Contravention is viewed as misconduct. The code emphasizes the need for a high standard of honesty and integrity which are Vital for the success of any business. PRINCIPLES 1. Directors and employees are expected not to engage in any activity which can cause conflict between their personal interest and the interest of the Company such as interest in an organization supplying goods/services to the Company or purchasing its product. In case a relationship with such an Organization exists the same must be disclosed to the Management 2. Dealings with third parties which include Government officials, suppliers, Buyers, agents and consultants must always ensure that the integrity and Reputation of the Company is not in any way compromised. 3. Directors and employees are not allowed to accept any favors, gifts or Kickbacks from any organization dealing with the Company. 4. Directors and employees are not permitted to divulge any confidential Information relating to the Company to any unauthorized person. Nor should they issue any misleading statements pertaining to the affairs of the Company. 5. The Company has strong commitment to the health and safety of its Employees and preservation of environment and the Company will persevere towards achieving continuous improvement of its HSE Performance by reducing potential hazards preventing pollution and Improving awareness. Employees are required to operate the Company's Facilities and processes keeping this commitment in view. 6. Commitment and team work are key elements to ensure that the Company's Work is carried out effectively and efficiently. Also all employees will be equally respected and actions such as sexual harassment and disparaging Remarks based on gender, religion, race or ethnicity will be avoided.

Page 17

Strategic Management Process of Kohinoor Textile Mills

VALUES
We are customer focused. We are market oriented. We are committed to people. We achieve through teamwork. We act through integrity. We are result driven.

STRATEGY5
1. Continue to improve the business by: Focusing on customer and improving retention. Customer information strategy and leverage of client base. Lower unit costs. Sales Growth through improved and expanded distribution. Sustained credible investment performance. New products and new market segments.

2. Manage the financial elements of the business to add shareholder value through: Focus on shareholder value added. Effective capital and debt management. Liquidity management. Outsourcing or centralizing certain activities. Improved risk management.

3. Achieve a real competitive advantage by focusing on new business opportunities through: 4. Strategic joint ventures. Acquisitions Start-up projects. Be the employer of Choice by focusing on: Work practices and methods. Training and career development. Rewards and recognition. Two way communication and involvement. Equal opportunity employer. Honesty and integrity.

Page 18

Strategic Management Process of Kohinoor Textile Mills

CHAPTER #

03

INTERNAL AND EXTERNAL ENVIORNEMENT ANALYSIS

Page 19

Strategic Management Process of Kohinoor Textile Mills

SWOT ANALYSIS
SWOT analysis is a strategic planning method used to evaluate the strengths weaknesses opportunity and threats involved in a project or a business venture. It is particularly helpful in identifying the areas for development 1) STRENGHTS The only company to have GOTS( global organic textile standards) award Least claim in the industry i.e. 1-1.5% annual less than industry average of 2.5% Own Electricity Generation i.e. of 10MW it also provide electricity to government at subsidize rates Recent innovations in products like consistency in whiteness Initiated step to transformed IT based systems in production like ERP 2) WEAKNESSES Internal audit system is inefficient and resources could be easily used for personal benefits Most of the orders are not on the time Too much reliability on foreign clients No proper Go down system to place the finished good for long time with Reliability. Employees do not show a proper motivation There is no concept of working in a team 3) OPORTUNITIES Kohinoor mills should start Projects for local markets Online shopping store can enhance the customer level Advertising can make Kohinoor textile mills more renowned Backwards integrations can minimize the costs 4) THREATS There are no consistency in planning of government regarding textile industry High costs of petroleum severely affect the company profitability GAS shortage sometimes leads to stop the production International and local market competition is becoming more fierce

Page 20

Strategic Management Process of Kohinoor Textile Mills

IFAS & EFAS MODEL

To give our project a mathematical touch and know how well is Kohinoor textile mill is responding to the factors in internal and external environment we have applied the IFAS and EFAS model as below,

External Factors
Strengths Least Claim Innovations

Weight

Rating

Weighted Score

Comments

0.3 0.15

4 3

1.2 0.45

Less than industry Remarkable improvement

IT Transformation 0.1 Weaknesses Delay in delivery Reliability on foreign customers 0.25 3 0.15 0.75 Delay to foreign orders Extreme dependence on foreign customers No motivation found 3 0.15 2 0.2 Improvement in production

0.75

Motivation among employees

0.5

Total
Interpreting the results

1.0

3.50

The result of 3 would indicate the organization is well positioned, while the result of 5 would indicated an outstanding performance

Page 21

Strategic Management Process of Kohinoor Textile Mills

External Factors
Opportunities Projects in local market Backwards Integrations

Weight

Rating

Weighted Score

Comments

0.30

1.2

Expanding Markets

0.20

0.60

For Cost Cutting

Online Shopping

0.05

0.10

More Customers

Threats No Consistency in planning

0.25

1.0

Poor Government Policies

Energy Crisis

0.15

0.45

Load Shedding and high prices

Total
Interpreting the results

1.0

3.35

The result of 3 would indicate the organization is well positioned, while the result of 5 would indicated an outstanding performance

Page 22

Strategic Management Process of Kohinoor Textile Mills

POTRER FIVE FORCES ANALYSIS

1) Bargaining power of Buyer: It has been seen from last 3 years that buyers are becoming anger and having problems to purchase the desired products from textile industry of Pakistan. There are several issues which are affecting the textile industry seriously and industry is bearing losses since 2005. The bargaining power of buyers is increasing day by day. The buyers are demanding more and improved quality in very cheaper prices, whether customers are from foreign or are from local markets. The competition at international level has been increased too much. If we look at a glance to USA exports of textile industry from all over the world and especially from Asian countries then we can easily found that Pakistan is offering most less export prices to USA which is 0.91 US dollars per meter. But other countries are getting more than these prices and in these countries; Bangladesh is on top that is getting 3.15 US dollars per meter from USA. Although Pakistan is offering the lowest prices but due to poor quality and present condition of the textile industry as well as of Pakistan present condition are the main reasons that Pakistan is losing its customers. 2) Bargaining power of Suppliers: Bargaining power of suppliers is increasing of textile industry day by day. The Govt. of Pakistan is playing very important role in this activity. As we all know that inflation rate is running upwards like a rocket and utility costs are also increasing day by day. Couple of days ago, Govt. increased the prices of Gas by 31% and all textile mills of Faisalabad strike against this huge increments. Now the cost of petroleum has also been increased due to which manufacturing costs of the companies is affected. The costs of Yarns and chemicals which are used to dye the cloth and for sizing process have also been increased. Textile companies are bearing too much manufacturing costs, if they come to increase their prices then there is a major threat that customers can move to other companies weather it is foreign marker or local market. 3) Rivalry: The competition in the textile industry is becoming very tough. The Textile mills are competing with each other on the basis of their prices they offer, the quality which they produce. Competition at international level is very furious for Pakistan textile industry. The major exporters of textile products are

In Local Market:
NISHAT TEXTILE SAPHIRE TEXTILE

Page 23

Strategic Management Process of Kohinoor Textile Mills

KTM TEXTILE COLONY TEXTILE YUNIS TEXTILE AMTEX CHENAB TEXTILE AL-KARAM TEXTILE GULISTAN TEXTILE FAZAL TEXTILE In international Market: China India Vietnam Bangladesh Korea Pakistan Iran And Pakistan is offering the lowest prices to USA as well as to other countries. But still Pakistan is lacking its quality and also losing its customers. Foreign customers are moving to other countries for the best quality. Although their prices are high but they are exporting best qualities of their products. From these countries, Bangladesh is on the top that is getting 3.15 US dollars per meter. 4) Threats of new Entrants: There is no threat of now entrance. If someone wants to enter in this industry, that company has to face number of competitors which are the big giants of that industry. On the other hand they have to purchase the latest technology, Fuel prices, high labor costs, opportunity cost etc. and major issue is that inflation is increasing day by day and instability of Pakistan Govt. 5) Threat of Substitutes: There is no threat of substitute. Because Textile products and cloths are the basic necessity of the human life and customers cannot move to other products by leaving textile products. Interpreting the results So we can say that Kohinoor textile mills is a 2 star company which means that out of these 5 forces only 2 forces are in favor of Kohinoor mills.

Page 24

Strategic Management Process of Kohinoor Textile Mills

CHAPTER #

04

LEVEL OF STRATEGIES

Page 25

Strategic Management Process of Kohinoor Textile Mills

LEVEL OF STRATEGIES
Well to find out accurately the level of strategies was the most difficult phase of the entire project because we have to deal with a situation where your competitors are your customers you offer different products at different international market in different ways. So it was totally a multi dimensional project. 1) GLOBAL LEVEL STRATEGIES There are following level of strategies, a) b) c) d) International Strategy Multi domestic Strategy Transitional Strategy Global Strategy

As we know that though Kohinoor mills sells its products at international level but it does not have any SBU at another country. So when it does not have any SBU so its strategies do not fall in any of the above said strategies. However we will shortly discuss how they interact with customers internationally YARN Kohinoor does not export yarn so there is no global level strategy for yarn. INSTITUTIONAL PRODUCTS For the institutional products Kohinoor mills compete on quality basis. 2) CORPORATE LEVEL STRATEGIES

Corporate Strategy is what makes the corporate whole add up to more than the sum of its business unit parts. We determine the corporate level strategy by knowing the 2 basic answers, a) What business should the corporation be in.? b) How should the corporate office manage the array of business units? Well corporate level strategy Kohinoor textile mills strategies are detailed below,

Page 26

Strategic Management Process of Kohinoor Textile Mills

INNTEGRATION When in 1953 Kohinoor mill started it was engaged only in manufacturing of bed sheets, and other items without the facility of stitching, dying e.tc but soon after years Kohinoor started manufacturing its own yarn, and also installed plants for dying, and bleaching. DIVERSIFICATION Kohinoor textile mills have also diversified in other international markets like Africa, Europe. 3) BUSINESS LEVEL STRATEGIES Well Kohinoor mills do not have any specific strategy for all of its products when dealing customers. It has different strategies for its different products. We determine the business level strategy by knowing the 3 basic answers, c) Who will it serve? d) What need those target customers have that it will satisfy? e) How those needs will be satisfied? We will answer these questions one by one for different products YARN For yarn it serves its competitors so it is a unique case where our competitors are their customers, these needs are satisfied on the basis of cost. INSTITUTIONAL PRODUCT For institutional products it provides its products on quality basis. So it has strategy of differentiation for institutional products. 4) FUNCTIONAL LEVEL STRATEGIES Functional level strategies are mainly directed towards, a) b) c) d) Superior Efficiency Superior Quality Superior customer response Superior innovation

Well Kohinoor mills neither have superior efficiency nor Superior customer response. But recently they have started work on innovation.

Page 27

Strategic Management Process of Kohinoor Textile Mills

CHAPTER #

05

ORGANIZATIONAL STRUCTURE

Page 28

Strategic Management Process of Kohinoor Textile Mills

COMPANY INFORMATION1
Information about the upper level management of Kohinoor textile mills is detailed below,

BOARD OF DIRECTORS
MR. TARIQ SAYEED SAIGOL MR. TAUFIQUE SAYEED SAIGOL MR. SAYEED TARIQ SAIGOL MR. WALEED TARIQ SAIGOL MR. KAMIL TOUFEEQ SAIGOL MR. ZAMIRUDDIN AZHAR CHAIRMAN CHIEF EXECUTIVE MEMBER MEMBER MEMBER MEMBER

MR.ABDUL HAI MEHMOOD BHAIMAI MEMBER

COMPANY SECRETARY
MR. M. ASHRAF

AUDIT COMMITTEE
MR. ZAMIRUDDIN AZHAR MR. SAYEED TARIQ SAIGOL MR. KAMIL TOUFEEQ SAIGOL MR. WALEED TARIQ SAIGOL CHAIRMAN MEMBER MEMBER MEMBER

CHIEF FINANCIAL OFFICER

MR. USMAN SAYEED

AUDITORS
M/S RIAZ AHMED & COMPANY (C.A)

MANAGER INTERNAL AUDIT

Page 29

Strategic Management Process of Kohinoor Textile Mills

MR. ZEESHAN AHMED

ORGANIZATIONAL STRUCTURE2
CHAIRMAN

Managing Director KRM

Chief Executive Officer KTML

Chief Financial Officer Group Director Finance

Functional Reporting

Company Secretary Director KTML

Manager Tax& Corporate

Manager Procurement

Manager Marketing

G.M Spinning

G.M Processing

G.M Finance

Manager MIS

General Manager Finance

General Manager Production

Senior Manager Marketing

Senior Manager Commercial

Senior Manager Information

Manager Maintenance Page 30

Manager Operations & Utilities

Manager Human Resource

Strategic Management Process of Kohinoor Textile Mills

CHAPTER #

06

RECOMMENDATIONS

Page 31

Strategic Management Process of Kohinoor Textile Mills

We would like to recommend Kohinoor textile mills the following, 1) NEW MARKETS It should not only go in new geographical markets but it should also add new products in its portfolio 2) LOCAL MARKET Kohinoor textile mills should try to develop its market locally. It should also sell its products domestically. 3) INTEGRATIONS Back ward integrations should be done, it could reduce the costs. 4) ADVERTISMENTS Kohinoor textile mills should place its advertisements in international journals which could increase its sales 5) FINISHGOOD PLACEMENT Kohinoor mills should develop a proper Go down for placing its product in a safe way 6) INTERNAL AUDIT Internal audit should be done more effectively and the management work should be cross check 7) INCRESE LIFE CYCLE Kohinoor mills should extend its life cycle. 8) MAKE 5 FORCES MORE FAVOURABLE It should try to make the bargaining power of buyers weak 9) MOTIVATION AMONG EMPLOYEES Kohinoor textile mills should consider its employees as its assets, and it should develop an interest of its employees 10) PORTAL Kohinoor should develop its portal and add the option of sales there

Page 32

Strategic Management Process of Kohinoor Textile Mills

CONCLUDING REMARKS
Kohinoor Textiles is one of the big giants and groups of textile in Pakistan textile industry. Kohinoor textile was listed first time in the market in 1987. Kohinoor Textiles was running under Maple leaf Cement Company till 2006. But in 2006 it separated from Maple Leaf and came into existence with the name of Kohinoor Textiles Mills. Kohinoor Textiles fortunately has its own major divisions just like Dyeing, Weaving, Hosiery, Home Textile, and Geeing Division. KWML is capturing the market share in local market near about 9.3% and it also exporting its fabrics and garments products to the foreign countries especially to USA and European Countries. As the Pakistan textile industry is facing many problems. Kohinoor Textiles is also facing these problems and try defending against them. Kohinoor Textiles also facing number of internal problems such as employees turnover, old technology, having no monthly plan and budgets, every time late purchasing of raw material and then of course late delivery and shipment. The main factor on which they are not paying too much attention is marketing of their textile products. They dont advertise about their products, whether you talk about the Grieg fabric, dyed fabric, garments, and home textile. They always show dependency upon their limited foreign customers as well as on local customers and they dont try to get and meet to new customers. They have to advertise and meet new customers to improve their quality, and capturing the market share whether it is local or foreign market share. They can use e-marketing concept to advertise over the internet.

Page 33

Strategic Management Process of Kohinoor Textile Mills

REFRENCES
CHAPTER # 01
[1] From Manager Marketing [2] Annual Report 2010 [3] Annual Report 2010

CHAPTER # 02
[1] Annual Report 2010 [2] Annual Report 2010 [3] Annual Report 2010 [4] Annual Report 2010 [5] Marketing Department

CHAPTER # 05
[1] Annual Report 2010 [2] Annual Report 2010 Other Reference used for reading are as follows,

www.aptma.org.pk/ www.saleemtex.com/ www.dallasnews.com/.../dews/bus/columnists /jlanders/stories www.ptea.org/ www.alibaba.com/countrysearch/PKsuppliers/Textile_Fabric.html www.dyedfabrics.com/ www.fibre2fashion.com/news/textilenews/pakistan/ www.just-style.com/article.aspx?ID=101227

www.wikipedia,com www.pide.org.pk/Research/Report180. www.bilaterals.org/article.php3?id_article=9230 www.bharattextile.com/newsitems/2003963 www.gia.com.pk/ www.epb.gov.pk/ www.spyfu.com/Term.aspx?t=553759 www.bizeurope.com/businessdirectory/000000 0463.htm www.iptu.co.uk

Page 34