THE INTERNSHIP RF.PORT ON
MARKETING DEPARTMENT OF
SHAFI SPINNING MILLS LTD.
Submitted To:
Department of Business Administration
(Specialization in Marketing)
Scss i o n 2 005-2 007
S ubm itte d By:
MUHAMMAD SHAH ZAD
Roll No. Q575970
Reg No.01-PSP -0197
Allama Iqbal Open University
Islamabad
Internshi
On Marketin
De artment of
The
MUHAMMAD SHAHZAD
ROLL NO O-575570
REGISTRATIO
ADDRESS FF-12 CENTERA I. PLAZ A
WGARDENTO
LAHORE
2
Phone¡ 042-5886014, 0322-7191120
HUSSAIN 55577@yahoo.com
ee of MBA
TABLE
NTENT
1
Title page.... ... ... ... ... ... ... ... .. . .....
1
2-
List of Contents.... ......................
3
3-
List of tables & illustrations ..........
5
4-
Acknowledgement.... .. . ..............
5-
Introduction............... ...............
6
Objective of studying the Organization. ..
Chapter I
9
11
Overvfi•w of yhe organfiation
1.1
Brief History ........................ .......
12
1.2
Nanire of the Organization. ... ... ... ... ....
19
1.3
Business Volume............ .... ... ... ... ...
21
1.4
Profile of Employees.... ....................
22
1.5
Product Lines. ... .............................
24
Chapter 2
29
2.1
Main Offices................................
30
2.2
Marketing Operations. ... ... ... ... .. . ... ...
30
Chapter 3
3.1
3.2
Structure of the Markeâng Department
33
Number of Employees working in the Marketing
Department. ..................................
34
Marketing Operations.................. .............
35
37
4.1
Marketing strategies...............................
37
4.2
Product Planning & Development. ... ... ... ....
39
4.3
Pricing strategy.... ................................
40
4.4
Distribution Strategy. .............. . ... ... ... ....
41
4.5
Promotional strategy. ... ... ... ... ... .. ..........
41
Cr’tical Analysis.
5.1
Critical Analysis. ................................
5.2
Success and failure of different products of the organization in the
Market along with reasons. ... ... ... ... ... .. . ...
45
5.3
Major Competitors of the Organization. ......
45
5.4
Future prospects of the Organization. ... ... ....
46
43
Chapter6
6.1
Chapter7
Critical analyses of the management patterns of the origination with
Reference to marketing operations, weak areas which need to be
Improved......... .................................
49
Conclusions & Recommendations7••
R•ovemenL
7.1
Conclusions.......................................
50
7.2
Recommendations................................
50
7.3
Suggestions................
52
8.1
Reference & Sources Used. ........ .......
34
LIST OF TABLES & ILLUSTRATIONS
Table No.1 ... . ... ... ... ... ... ... ... ... ... ... ... .. .... 15
Table No.2 ... ......................................... 21
Table No.3 ....... ... ... ... ... ... ... ... ... ... ... .. .... 26
Table No.4 ....... ... ... ... ... ... ... ... ... ... ... .. .... 27
Fig No. 1........................................ ... ..
14
FigNo.2...............................................
14
Fig No 3............................................... 16
FigNo.4.............................................. 16
FigNo.5..............................................
16
Fig No. 6. ....................................................... 16
Fig No 7 ............................................................ 17
Fig No. 8. .................................................... 17
FigNo.9............................................
17
Fig No.10 ..........................................
17
Fig No. 11..........................................
17
Fig No. 12. .......................................................... 18
I-ig No. 13.............................................................. 25
I-ig No. 14...........................................
25
Fig No. 15...........................................
25
dig No. 16. .................................................... 28
Fig No.
17..........................................
28
Fig No. 18...........................................
28
Fig No.
28
19..........................................
Fig No. 20...........................................
29
Fig No. 21..........................................
33
Fig No.
34
22..........................................
I DEDICATE MY SINCE
EFF TS IN OVER
TO GAIN PM CTICAL KN PLEDGE DURING
THE COURSE OF PRESTIGIOUS DEGRFE
PM OGRAMME OF
M.B.A
IN
MAKETING
ALLAMA IQBAL OPEN UNI E STY
ISO AMABAD
MY PARF.NTS
TEACHERS
First of all, 1 am grateful to my Almighty Allah who is the only master of my soul and
spirit. He awarded me with the right amount of health, strength, vigor and vitality to
complete this cm cial task successfully. Then comes the turn nf my Holy Prnphet
(P.B.U.H), who is not only the role model for my personality but for every soul living on
this land mark. His great wnrds of wisdom are greatly responsible for getting me through
this successfully withnut getting into any kind nf my mess.
In this professional arena, every new comer got to have some assistance of some
experienced professionals fur having a better knnw hnw of snme nrganimtinn’s
processing. Similarly, 1 grit the help nf some kind professionals in Shafi spinning Mills
Ltd for having some proper learning during the internship phase. First of all, the General
Manager nf marketing a department named Mr.Kashif Mehmnod was a very kind and
generous person, he kind behavior never allnwed me to be hesitant in his department.
Then, Mr.Qasim Assistant Manger in Marketing department assisted me a lot in
understanding the flnw of documentation in his department. Mr.Tahir (Export Officer)
made me familiar with the depth of all documents. 1 am really thankful to these three
above mentioned personals for guiding me through the right date way of success. 1 am
also very much thankful to the all staff members of marketing department, who were
found to be very keen to transfer their knowledge to the new comers like me.
My parents and teachers always played a very pivotal role in cherishing and nurturing my
career, so, 1 have great regard nf thnse personalities who have some contribution to my
personality one way or annther. 1 am grateful to all these personalities frn m the bottom nf
heart, who made me the useful citizen of society.
Muhammad Shakzad
R
N . 5 5970
Allama Iqbal Open University Islamabad
INTRODUCTION
Spinning is the strangest link nf the value chain in Pakistan’s textile industry. lt is the
nldest industry and has matured over years with considerable investment, human
resources and marketing connects globally to survive under most competitive conditions.
lt has shown vignr and growth under a less sheltered environment compared to India and
China.
Most of the investment in past years has gone into the spinning sector. The industry has
the technology and the capacity to suppnrt high growth levels in the downstream and
upstream production of cotton and cotton products and meet the global trade competition.
However, as the emphasis of Pakistan’s textile industry is upon spinning activity, major
portion nf yarn prnduced (of gond quality) is exported rather than utilizing large part of it
for producing high value-added products like fabrics, or garments. This is a serious
structural weakness of Pakistan’s textile industry. This yarn impnrted by cnuntries like
Japan (major export market for yarn), Hong Kong, and South Ko rea whn have we11flourished textile industry convert it into high value added products and fetch much
higher prices in the intematinnal market. These countries dn not grow cottn n, but they
have well-established textile industry because they
have
invested
in
modem
manufacturing technology as well as in qualified and well-trained wo rk force. Their
efficient methDds of production have enabled them tn nvercome the handicap nf imported
yarn. Whereas in Pakistan, textile industry continues to suffer due to lack of investment,
and well qualified work force, despite having the advantage of cotton and labour
An impnrtant achievement of the Uruguay Rnund was the decisinn to phase out
restrictions on imports of textiles and clnthing. These restrictions were imposed by
certain developed countries. The Agreement on Textiles and Clothing (ATC) of WTO
which replaced the Multi Fiber Agreement (MFA), provided for the remnval nf these
restrictions in four phases over a period of 10 years. The phasing nut program ended on
January 1, 2005. As a cnnsequence the quotas have been cnmpletely abnlished and the
imprinting countries can no longer discriminate between exports of textiles and clothing.
Moreover, the trade in textiles and clothing has now completely integrated into General
Agreement on Tariffs and Trade (GATT) 1994 and will continue to be gnvemed by its
rules.
Pakistan was the greatest sufferer of the quota regime as it had a high percentage of
textiles and clothing ex ports which were restrained due to quotas by imprinting cnuntries.
Pakistan can, therefore, benefit greatly from the present nun-quota regime of WTO in
textiles and clothing sector
However, there are a number nf npportunities and challenges awaiting the textiles and
clnthing industry of Pakistan in the international market place. For instance, it is being
expected that the importing countries would subsequently try to resort to other trade
restrictinns to take the place nf quotas. These can be in form nf nun-tariff barriers such as
importing countries’ requirements fur the industry to comply with environmental, lab or,
sanitary, phytosanitary or technical regulatiDrlS. The compliance to quality standards and
regulatinns is a cost factor, which the industry will have tn face and prepare
for.
Morenver, cnuntries like China and India have already began giving a tough cnmpetitinn
to Pakistan’s industry under the present quota free environment. A strategy needs to be
made in this regard as well.
hafi
Mill
Shafi Spinning Stills is a spinning mills that has grind name in the varn qrnduct. It prr›duces
the varn by using couon as raw material and it uses the ducal and imqnrtant cotmn for this
Surprise. It uses the ›\+ jade cotton to produce fished gor›ds. It is worlclnp under the I.S.M
Policies and the audit nf I.S.G dune br the if nndv International and it shnws it’s gnc›d
performance thrush the audit whether it’s matter nf qualiu' nr nn nther department Uureentlv
it is consists nn 2fi frames nf men-end mills and S.$ frames nn ring spinning x'arn that pmduce
27.5 bags nf yarn
7.SEO lbs) rim duly basis in ring section and .3.$O bags nf men- end w1th
(S5000 has ). It has a ta et nf 70'/ sales in the fnreipn market and S0% sales nf their
production in th e ducal market.
10
Chairman.
Kh Zahid.
Managùig Direttnr
Kh Kashif Elahi.
OBJE CTI VES OF ST U D YIN G SHA FI SPIN N IN G MIL LS PVT LTD
Main objective of studying SSM was to do internship in order to fulfill the compulsory
requirements nf ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD for MBA degree.
Secondly as SSM is the biggest corporation and business entity of our country and 1 want
to study for my knnwledge.
1 studied GSM in order to understand;
The philosophy and gnals nf the organization in relation to the services it pmvides.
° The infrastructure of the organization.
•
The core objective of the organizatinn existence, which are its customers.
•
The role of the organization as a competitor, and as well as a socially responsible
business organization.
° In Addition tn above, the objective was also to apply theories in the practical
situatinn and draw cnnclusion. For the purpose, the systems and procedures of the
organization were studied in order to learn process.
° To learn Marketing activities of management of SSM. Tn study the hiring and
fling decisions of the management and consider the impact of these decisinns on
employees.
° To learn how management of SSM takes decision for promotions of products.
° to learn the effectiveness of grievances cell in SSM
12
CHAPTE RI
VERVIEW
F THE
ANIZATI
1.1Brief History:
Role of spinning sector in economy:
Spinning is the process nf converting fibres into yarn. The fibres may be natural fibres
such as cotton or man-made fibres (MMFs) such as polyester. Sometimes, term spinning
is also used for production of man-made filament yarn (yarn that is not made from
fibres). Whatsoever is the case, the final product of spinning is yarn
Cotton value chain starts from G inning that adds value to it by separating cotton from
seed and impurities but Spinning can rightly be called as the first process of the chain that
adds value to cotton by converting into a new product i.e. conversinn frnm ginned cottnn
into cotton yarn. The importance of spinning cannot be overemphasized. Since spinning
is in the beginning of value chain, so all the later value added processes of weaving,
knitting, processing, garments and made-ups manufacturing are dependent upnn it. lf
spinning industry produces sub-standard yarn, its effect goes right acrnss the entire value
chain
The spinning sector forms the heart nf the textile industry. This sector produces yarn for
downstream sectors, namely weaving, processing and knitting
Pakistan is the third largest player in Asia with a spinning capacity of 5% of the total
wnrld and 7.6% of the capacity in Asia. Pakistan’s growth rate has been b.2 % per annum
and is secnnd only to Iran amongst the major players. At present, cntton-spinning sector
is comprised of 458 textile units (50 composite units and 408 spinning units) with 8.h
million spindles and 77 thnusand rntnrs in operation with capacity utilization nf 87
percent and 49 percent respectively, during July-Feb 2005-06
St rt
o en end
1992
Shafi Spinning started it’s business on 5 March 1992 when the Chairman of the SSM
come for ripening cermoney.lt started it’s productinn with only 1 5 frames of open-end
machinery that have nnly 3240 routers. That time they start to produce yarn as finished
13
bonds with use nf B grade raw material and mixing with soft waste. The production nf
bags of SSM was only 210 bags(21000 lbs) on daily basis. That time they have nnly one
sales office in Faisalabad.They sell their products only in local market especially in the
Faisalabad area to small traders who manufacture cloth rim looms. That time they have no
alsn more staff of professional type and nut quality cnntrol department.
After three years in 1995 they want to bring improvement in quality of their product. F or
this purpose they decided tn use grade cotton and they visit various cotton factories and
selected for their policy. With the use of this high quality raw material their product of
yarn change into high quality and a blended product of that time and they get more and
mnre prnfit with its sale. Than they decided to purchase more open-end frames for more
production.
Purcha
n-end frames:
After completing fiver years of it’s business start the management of that time especially
Mr. Tariq mills manger visit for more open-end machinery in Germany. After visit he
told the whole situation to Chief of the SSM and Chief Executive of the SSM decided to
get more 10 frames of open-end of modern type and which have modern function and
features fur the purpose of face the increasing demand of yarn. They manage and allocate
funds for the purchasing of more 10 frames of ripen-end.
Erection of New frames:
With the purchase and erection of new frames SSM enables to increase of its production.
First in 3240 FnDters they were producing 210 bags nn daily basis. With the erection and
working of new 10 frames their rooters increase to 5400 and their prndu ction increase
towards the 350 bags (35000) lbs on daily basis. Due to increase of these 10 frames with
2160 rooters company need mnre production staff and sales staff in the sales office
Faisalabad.For this purpose the Labour Officer of that time arrange a meeting with the
Mills Manger and with the Management Director of the Shafi Spinning Mills Ltd.
After this the labour get permissio n fur hiring new production staff and M.D hire new
staff in sales office Faisalabad.
14
Following pictures are on erection and on production stage of open-end section.
FIG 01 (While erection)
FIG 02 (While pmducing yarn)
15
First Export Dispatch 1998:
After the successful erection of new open-end frames the management and sales manger
nf the company want to expnrt their prnduct for this purpose the Chairman of the
company visit variDuS cnuntries of Asia and send sample of his company product and
finally the get a contract of 10/1 hard from Hong Kong .They send their first container of
10/1 hard that was consists on 390 bags(39000 lbs) and send it into Hong Kung in 1998.
After this they get more and more contract from foreign cnuntries and they increased in
ratio of expnrt product and earn a good name in a short time.
At the time of SAFTA implication’s on Pakistan textile industrv.
Huring the last few years, the textile industry in South Asia has grown at a rapid pace,
becoming one of the largest manufacturing sector in terms of contribution to industrial
production, foreign exchange earnings and emplnyment generation. The increasin$
significance and improved performance of the textile industry in the region could be
attributed to a number of factors such as the continued steady demand due to availability
nf quotas, participation of foreign investors particularly from other quota receiving
countries in the industry, adnptinn nf liberalized market policies and the availability of
low cost labour.
Eurnpean Uninn
68.1
China
Korea. Rep. Of
United States
48.Y
34.4
4.6
6.9
11.4
2.7
4.0
7.4
6.8
4.8
3.2
5.9
9.3
5.6
Taipei. Chinese
J apan
49.4
14.95
7.4
7.1
4.2
1û
India
Turkey
4.2
2.1
2.1
3.8
2.7
1.6
2.6
3.1
0.61
0.6
1.4
2.7
0.1
1.2
2.2
0.6
0.7
1.5
Indonesia
Canada
0.9
Table 01
I rin an
After this successful meeting as the above mention the management of the SSM
decided to purchase more frames of ring and back process for more production.
For this purpnse the G.M of the SSMvisit to Germen and Switzerland to see and
purchase the new frames of ring and back process. At last they purchase 35 ring
frames and back process
for supply of material these ring frames.
Erection of Rine Section:
Than the erection of the new ring section under the high supervision of G.M and M.M
of the SS M.However the mills manger was old to this oryanization he helped out his
senior manger in various problem. Both the manger wnrked hard for this process and
technical staff also do hard work.
Pictures after the erectinn nf back prncess in ring sectinn;
FlCi 03(B low Room frame)
FIC 04(Breaker Drawing)
FH 06 (Comber frame)
FIG 05(Drawing Finisher)
Ring and windin g frames alter the erettin n.
FIC 07(Ring frame)
FIG 09(Winding frame)
FIC 08(Ring frame)
FIG 10(Winding
FIG 11 (Winding
during production)
New Production Plan and Process Flow:
After the erection of these 35 ring frames and back process frames SSM enables to have
35 ring
with 17640 spindles and in open-end side with 25 frames of 5400 routers.
So with the increase of these 35 ring frames production increase to 275 bags in ring
sectinn of 27500 lbs on daily basis and in open-end section tnward 350 bags 35000 lbs rim
daily basis. Total production on daily basis reached to 625 bags (62,500 lbs) on daily
basis. Than management increase the export ratio towards 70% and 30% left for local
market.The new process flnw of SSM is as under.
19
FIG 12(New Process Flow)
1.2 Nat
I the
anizati n:-
SSM being a spinning organization is a part of textile industry. lt deals in making yarn
with the use of cotton as raw material. lt gives the products to it’s customers according to
their requirements and needs. lt uses the A+ grade raw material for produce the yarn nf
various specifications. So it completes the order of it’s customers whether he is local
customer or foreign customer in time and give delivery at their expectations. That is the
why this organization have earned his name and get lot nf reputation in a very shnrt time.
2D
Gnats and nbjectives;
SSM assigns the following objectives and goals in 2002
To provide and de elop .sa u, efficient, and f?roflt9mfra/ product.i of yarn for the
.iatnactioii o[the cu.sterner.i, give them according to theirs need.i and de.direr and work
under a quality and product policy, keep [ecu.i on cu.itomei• loynlty and requfrrmrnt.s.
Vision
To be a competitive and customer focused organizatio n with continuing commitment to
excellence and standard.
Mission Statement:
Tn achieve the higher satisfaction level of the external customer and of the internal
customer as well, which helps SSM maintain good customer-supplier chain with in the
company. Customer satisfaction defined through quality and quality is defined by the
custnmer as products and services that through nut their life meet needs and exceptions at
cast that represents value.
•
To be a business house of customers of first class.
°
To be a changed leader.
°
To produce innovative, relevant and cost effective product by setting and
maintaining high standards.
°
To earn profits by achieving the optimal level of production by using the state of
art technologies.
°
To prnvide ideal wo rking environment to employees and to take care in their
career planning and reward them according to their skills and respnnsibilities.
Values;
•
People
•
Relationship
•
Integrity
•
Diversity
•
Environment
u lit
ertifi
tion nd A knowled e
nt o S
The management of the company is committed tn achieve the internatinnal quality
standards in their products. As it has been dealing with international reputable business
houses in the world, which demand the highest quality standard frnm their suppliers. The
company tries to achieve its commitment and has achieved the following certificatinns:
O -9001
ALITY YSTE M:
According to this system management policy is focused on customer satisfaction which
the management ensures thmugh proper planning, continuous improvements, employee
satisfaction, environment friendly production, prevention of environmental pollution,
resource conservation and imp lementation nf relevant environmental, social and cultural
norms and laws.
A- 800 MANA E ME NT
TEM
O -14000 E NVIR NMENTAL
TEM
Beside these certifications, SS M also won the best export performance trophy award
consecutively for the seventh time from the federation of Pakistan chamber of commerce
and industries in their 26‘ FPC Cl Export Trophy Award Ceremony for highest export of
value added cotton fabrics.
The management of the company is also very committed to excel in manufacturing of
high quality products in the future as well. Federation of Pakistan Chamber nf Commerce
and lndustries also awarded businessman for the year gold medal fur investment to the
Chief Executive nf the company at 26‘ trophy award ceremony. lt is the forth gold medal
award conferred upon the chief executive by the FPCCI.
L3Business Volume: Year ended 30 June 2009
(Rupees in Million)
2008
2007
2006
2005
2004
22
Nti ''¡
e
Gross pro fit
Taxes Paid
Profit After
Current
Assests
Current
Liabilities
Long term
LOBns
997,588,565
999,186,448
996,694,710
990,258,034
983,374,415
103,823,222
105,982,880
108, 116,456
I 07,4 I 5,995
106,6 71,565
79,806,840
79,252,075
78,73 7,620
7SJ29,135
77,685,345
6,305,452
6,127,3 62
6,1 12,082
fi,072,6 10
fi,030,39 7
17,710,930
20,603,443
23,26ó,784
23, I I 6,523
22,955,823
138,902,448
l 37,601,356
l 36,501,552
1 98,153,355
173,052,150
185,896,3 65
179,575,072
177,419,523
I 76,234,995
174,9 68,218
178,052,1 32
176. I 33,567
175,694,331
I 74,559,693
173,346,269
267,892,68d
267,25G,73G
26fi,590,260
2G4.8G8,6I4
263,027,422
1:0.74
1:0.76
1:0.77
1 :1.12
1:0.98
11.56%
13.25 %
14. 9ó %
T 4.86 %
14.75%
3.92%
4.85 %
5.50 %
5.45 %
5.40 %
1.22
1.48
1. làs
1.65
I.63
5,400
5,400
5,400
5,400
5,400
17,640
I 7,640
17,640
I 7,640
T 7,640
10,022,453
10,201,306
10,215,866
10,211,059
Sbare
Holder’s
Equity
Current
Raio
Gross
"
'
Net Profit %
Eareieg per
sbare
No. of
rooters
No. of
spindles
Total
Productiou
10,203,75d
bable 02
1.4 Profile of em
ees: -
SSM has 925 employees in which 220 are contractual and 705 are permanent employees.
Classificatinns nf emplnrees;
The permanent employees shall be classified under the following categories;
23
(a) Officers; covering all classes of employees from pay group V and abnve including
emp loyees in special pay groups.
(b) Staff; cnvering all areas of employees in pay group 1 to 1 V.
SSM has own training institute named SSMTC(Shafi Spinning Mills Training Center)
in which they trained the employees accnrding to their job descriptions.
Permanent and Cnntractuat Eniptnvees:SSM has two categories nf emplnyees.1 -contractual emplnyees 2-Permanent emplnyees.
E.O.A.B.I Fund
The Coipnration operates a defined contributinn provident fund scheme for its entire
emplnyees equal monthly @2.5% EOABI fund n n basic pay.
Snciat Security Cnntributinn;
SSM also contributes so cial security fund of employees. lt depnsits this fund in the
account of Punjab Social Security Office. With the contributinn nf this fund emplnyee
enables to take medicine in case of illness. Mnreover this institution also gives facility to
emplnyees to free treatment in big hospitals in case nf emergency and in case of serinus
disaster. Due tn this fund marriage grant is also given tn the employees on the wedding
of their daughter.Schnlnrs1iip is also given to employee’s children and with this free
education is alsn annther benefit.
Free Cnuvev ance:
SSM also gives the facility of conveyance to it’s employees. The employees come on
duty by transport of SSM.They also went to their homes on the transport of SSM no any
charges of this facility takes this company from it’s employees.
PROFILE
F MAIN MARKE TIN
Name
Designatinn
Mr. Tanveer Ahmed
Director Marketing
M.B.A (Marketing)
24
Oxford University
Ezpe<ience;
â• 5 years as Marketing Manger in N ishat G roup.
•t• J oined SSM in 2001.
Name
Designatinn
Rana Amanullaha.
Directnr Sales.
M.A.Eco (P.U)
Experience;
4• J oined SSM 1995 and later on Promote as Deputy Sales Directnr in the year 2002
because ofgn nd performance.
Designatinn
Name
Mr.Kashif Mehmood
Marketing Manger.
M.B.A (Marketing)
Quaid-l-Azam University
Experience;
â• 3 Years experience in Sapphire textile grnup as Assistant Sales Manger.
â• J oined SIM in 2001 as Marketing Manger.
4.
Name
Mr lrfan Ahmed
Experience.
Designatinn
Sales Manger
M.B.A (Executive) P.U
â• Joined SSM in 1 997 as Assistant Marketing Manger
4• Promoted in 2002 as Sales manger.
5.
Name
Designatinn
Mr. Muhammad Qasim.
Asst Marketing Manger
M.B.A (Marketing)AlOU
Experience;
â• 2 Years experience as Sales Promotio n Officer in Bilal Fibres.
•t• J oined SSM in 2002.
1.5 PRODUCT LINES: The product of the SS M consists into two main sections and the objective in these two
sectinns is to produce the yarn finished goods prnduct by using the cntton as raw
material. These two sections are as under.
A. Open-end yarn.
B. Ring Spinning Yarn.
n-
Yarn:
Open end yarn consists into two ma in Categories that are as follows.
These two catogeries are produce by cotton and soft waste.
•
Open-end Soft yarn.
°
Open-end hard yarn.
en-end Soft Yarn:
This type of yarn is produced with B grade cntton and with the mixing soft waste using.
Mostly this type product sells into local market only. Currently these counts are running
in this category.
V 5/1 soft in local packing
2G
V 7/1 soft in local packing.
V 8/1 soft in local packing.
en-end Hard Yarn:
This category of yarn is produced by using of A+ grade cotton and no any mixing of soft
waste in it. Mostly the product is prepared for sell into the foreign market.N ow these
counts are running in this category.
V 10/1 hard in export packing.
V 1 2/1 hard in export packing.
22/ 1 hard in local and export packing.
FIG 14(Hard yarn Open-end)
FIG 13 (Soft yarn Open-end)
FOR 15 (Export Yarn Packing Open-end)
Last Five Years Products in Open-end Section.
Last vear Ended June 2009.
A
B
27
2004
2tlO5
2006
2007
2008
126,265
126,314
126,148
126,122
l26,OlI7
12,626,500
l2,63l,4tJtJ
1 2,614,800
1 2,612,200
l2,6OS,7OO
5,727,343
5,729,565
5,722,036
5,720,856
5,719,269
Table 03
&Rinp Spinning Yarn:
Ring spinning yarn is produced mostly for export and it is produced with the use of 100%
Local and Important cotton of A+ grade. lt is divided into 4 cato$eries.
•
Ring spinning cardcd hosiery yarn.
•
King spin ning comber hosiery yarn.
•
Ring spinning Lycra yarn.
•
Ring spinning slub yarn.
Rin S innina d ho
er
rn
This category consists in follnwing cnunts.
20/ 1 carded hosiery in local and expDrt packing.
22/ 1 carded hosiery in export packing.
Rine Spinning Comber Hosierv varn:
This category consists on following counts.
V 18/ 1 comber in local packing.
20/1 comber in local packing.
26/ 1 comber in export packing.
30/ I comber in export packing.
Rine Spinning Lvcra Yarn:
25
This category is use for making socks especially. This category consists in follnwing
counts.
V 12/1 Lycra in export packing
16/ 1 Lycra in local packing.
Rinp Spinning Slub Yarn:
This is that product of yarn that is use for making winter season cloth.
Currently only one cnunts are running in this category.
V 8/1 slub in local packing.
Last Five Years Products in Rinp Section.
Last vear Ended June 2009.
B
A
2 4
2005
2 6
9yx4x
98,905
9¿8U4
9,d84,800
9,890,500
9,88fl,400
4,483,716
28d7
VN,776
9,877,600
4,48tl,45O
2008
94,868
9,486,800
4,303,184
4,486,301
4,45 l,72tl
Table 04
29
Fl€i 16 (C arded Hosiery yarn Ring)
FIC 17 (Comber Hosiery yarn Ring)
FIC 18 (Lycra yarn Ring)
FIG 19 (Slub yarn Ring)
CHAPTER 2
ORGANIZATIONAL STRUCTURE
Chairman
DIRECTORS
Head Office
Producton
Unit
Production
Technical
Director
Purchase
Accounts
GM
Purchase
Finance
MIS
GM
Marketing
Staff
Manager
Sta
FIG 20
2.1Main Offices
Mills Site:
72 KM F aisalabad Sheikhupura Road Ferozewatton.
Finance
Sta
Tel 056—3 731001 —2
Fax 056—3 731003
LAHORE (Head Office)
3-Mehmond Ghaznavi (Abbot)Road Lahore 54000 Pakistan
Tel 042-63 62615,6311127-28
Fax 042—6311126
E-Mail; ShafiÜlwol.net.qk
KARACHI (Sales Office)
Room No. 315 3“ flour Cotton Exchange Building.
1.1 C handrigur Road Karachi.
Tel 021-24 13204-5
Fax 021 2413205
FAISALABAD (Sales Office)
24-Chenab Market Medina Town
Faisalabad Pakistan
Tel 041-64400 1 -2
Fax 041 —644000
2.2 Marketin
erations:
The SSM Marketing Operations consists on the customer’s needs and requirements.
They keep in mind the needs of the customers and the satisfaction of the customers while
launching any new product or while making new policy nr the strategies. All their
planning of product nr planning nf quality or planning nf packing or nn the basis nf their
customer’s needs. That is why they have good name in the yarn market.
While selecting new sector management considers the following.
man
nt
an mana
lt is very big issue for the management of the SSM when they have to manage fur a new
yarn counts. Because they have already full frames that are manufacturing yarn for their
buyers. Sri for matter they have to think and they have to make pnlicy for manage new
nrder. ln this connection management think and make a policy for handle it.
b-What are other c
in
The most important challenge for the management of SSM is that they have to see frnm
other competitors and they have to follow them from seeking them. They visit and see the
problem they are facing. lf the problem is launching new product ,problem of getting new
contract from the buyer or getting of new product contract from old customers.
- While launchin
arn:
This is very big and serious matter for the management nf the SSM when they have grit a
new cnntract frn m the customers for a new prnduct. To complete this contract SSM has to
make a policy for old contract and to complete. lt depends on management that they
delay in the local customers or they stop any extra prnduction of yarn that have in special
times tn launch new product. So the management makes such a production plan in which
whole the matter handled with that production plan and that production policy.
d-Corporate clients visiting.
The must imqnrtant operation of SSM kfarketing Deqarnnent is tn evaluate the cnrpnrate the
customers and then visit run prior basis m create a qnsitive image in the minds nf business
gentle. Though this hfarketinp Department also evaluate the qrr›duct image of x am. Details
nf domestic as well as international marketing nqeratinns nf SShf are as under:
1The SSM has follnwing domestic operation in the city nf Pakistan and in these cities they
have own godown for the distribution of yarn.
SIN DH
1 — Karachi
2-Sanghar.
P U NJ AB
1 -Rawalipindi.
2—Lahore. 4—
3—Faisalabad.
Kasur. 6—
3-MuJtan.
Muzai’iaryarh.
2- Int rnati nal
Shati Spinning Mills L iinitcd is ioanutacturing cncyclopctlic range ot’ alluring,
captivating, charming & elegant yarn which co inniand unstinting appreciation and is
acknowledged in such intensely coinpctiti ve markets like
1. Scandinavian countrics
2. €3ennany
3. France
4. New Zealand
S. Canada
6. U nitcd State or’ Amcri ca
7. U nitcd Kingdom
S. Middle east
9. 1rcland
10. Austria
11. South Atrica
CHAPTER 3
F THE
TIN
DEPARTMENT
34
Significance of marketing department for an nrganizatinn is like its soul. Because this
department puts all nf its efforts to increase the sales of the organizatinn. SSM is a
cnmpauy that has an energetic Marketing department. All penple working here are
aggressive and actinn nriented. Marketing department is responsible fur that how
prnduct is distributed and prnmpted and priced. Basically the cnncentratinn nf
marketing department is nn custnmer needs. SSM is an export-oriented firm en the
demand nf its products is nut nnty in local
but alsn in the fnreign
The marketing functinns are divided intn twn parts gengrapliically: Lncal and
Foreign.
Director
Marketing
Director
Sales
Sales Promotion
Sales
Staff
FH 21
Director
Marketing.
Marketing
Manager
Asst Marketing
Manager
Sales Promotion
Staff
Staff
Disp ch
OfKcer
Staff
FIG 22
3.1 Number of E mplovees Workinp In the Marketing Department:
The most important department in any business cnncern is marketing. lt is the prncess of
planning and executing the conception, pricing, promotion and distribution of ideas,
goods& service to create exchanges that satisfy individual and organizational goals. lt is
the art nf choosing target markets and getting, keeping and growing customer’s
throughcreating, delivering and communicating superior customer value.
Marketing peop le are actually the communicators who materialize the needs of the
custnmers by producing the products needed. They not only sell their products but also
try their level best to satisfy customer needs. Presently about 95 employees are working
in the marketing department of Shafi Spinning Mills Ltd. Whole the marketing
department wnrking under kind co ntrol of Directnr Marketing Mr.Tanveer Ahmed.
.2 Marketin
erati ns
Marketing department always plays a key rule in the success of any
urbanization. Marketing team is cnnsidered as assets for any factor who
nourishes it through getting continuous orders. He is responsible for
negotiating with the buyer, developing and getting approval abnut lab dips,
fabric
and
samples
from
the
buyer
and
forwarding
buyer
requirements/specifications production planning department, so that an o rder
can get delivered on time with all specialization and quality
parameters
requ ired by the buyers.SSM is one nf the few leading finish fabric producer in
Pakistan. Most of the finish fab ric exported to different countries in which
includes USA, Eurnpean countries, South Africa, Australia and snme Asian
countries as well. In order tn cater the needs of this international clientele
adequately, the ro le of marketing becomes vital. The Marketing Manager is
head of Marketing Department at Sapphire. The following sections come under
it and they wnrk in close assnciation with the marketing department.
ñ Customer contract Pre/Post contract activities.
V Sample Development.
The business process is a set of activities to perform business dealing with
customers. The business dealing can be done thrnugh different ways. The
following are the sources to contact with customers are as under.
through the agent of the foreign buyer.
V Direct co ntacts.
V New customer’s inquires.
The business process has two phases:
1. Pre- Contract Phase.
2. Post Contract Phase.
In Pre- Contract phase inquiries are made by customer for informatinn, price
quotation from supplier. lf the customer satisfies from the price quote by the
supplier (SSM) then the customer places a purchase order regarding the
requ ired quantity and quality nf the product (Yarn). The supplier prepare a
contract note against the purchase order of customer
Pre-Contract phase includes the following:
V Inquiry from customer.
PNce Note from Suppler.
k Purchase order from customer.
Contract note from supplier.
POST CONTRACT PHASE,When the pre-contract phase end then post co ntract phase start. In post contract
phase production order is prepared against contract note. The set of activities
which process the contract into the production to the production department.
Then handling the shipping documents after opening the Letter of credit. At
last shipment reach tn the destination and contract come to an end. These
business/marketing prices repeat again and again. The post contract
consists of the fo llnwing steps as under:
•
Production order.
•
Letter of credit.
•
E—Form.
•
Shipment and shipping documents.
phase
CHAPTER 4
FUNCTIONS OF THE MARKETING DEPARTMENT
4.1 Marketin
In nrder to reduce their dependence on a few markets especially Europe,
USA, and Asian new markets were develnped for finish product of yarn..
This diversification not only reduced their dependence on Hong
also gave those better profit
margins at times
Kong
when Hong Kong
but
market
was very depressed. Under this market diversification, they started business
with Snuth Africa, Australia etc.
Cnntactin8 Old Customers
The business with some of the old buyers in Europe was also revived during
this perind after intensive efforts. This revival have
good volumes and
better profit margins.
V New and lunnvative Product Development
They have developed fancy and special verities of finish fabric such as
comber and lycra yarn which
keep on mndernizing their
are
being
equipment
sold at
in order
premium
to
prices. They
maintain
the high
quality of their products.
With the increase of competition, they have become more quality conscious.
In order to achieve their quality standards, they maintaining better quality
by getting yarn frnm pre-approved sources, tighter fabrics inspection in
folding and providing service to their customers.
Marketing strategies includes,
iM
ii
1
Meeting with buyers.
2
Company profile.
3
Buyer Visits.
4
Free Sample.
5
Contacts with agents.
b
e
Marketing manager meets with buyer,
prospective buyer.
This strategy helps
introducing
SSM products
manager to understand
and requirements of buyers as well as marketing people
current trends of market. Through negotiation you
the
to
needs
are aware of
win the sympathy of
buyers and business for company.
Cnmpanv Prnfite:
SSM has also published it profile introducing its key products
to
customers. This bonklet is send to various agencies dealing in purchase of
cotton, fabrics and made-ups. This strategy helps to introduce the company
in out side world. Varinus broachers are also published.
Sometimes buyers visit are arranged tn familiarize them with products,
SSM is offering for their valuable customers. These visits are crucial
for the growth of the company because they help in introducing products
to nthers and also win a lop nf
business
for
the
company.
The
Marketing department frequently invites buyer to shDw them excellent
production process and quality productions.
40
Free Samples;
This strategy is widely too used to boost up exports. Free samples are
delivered to customers. When new prnduct is made, free samples are sent
to loyal customer shDW firms concern for them. Customer satisfaction is
a important aspect because customer is a person who gives meaning to
company.
Contacts with Agents;
SSM is an export oriented urbanization. Mnre than 70% nf its sales constitute
exports. So to capitalize foreign market, SSM has long list of agents
working in foreign market.
This strategy is useful
not able
to communicate
with
buyers; it
can hire
who for
commission introduce their prnducts
when company
services
in market.
is
nf agents
Relationships
with distributors or agents are recognized as critical success factors so
a lot importance is paid to agents whn are valuable asset of firm.
4.2 Pro
ct Plannin
vel
Product planning and development is key to success. Some organization feel
that they cannot survive without R & D. SS M is me of these organizations.
Or$animtions finances research and develop ment projects using either %
age nf sales of methnd nr financing as possible.
Following are some research and development techniques.
SSM has recognized the
impnrtance
nf
business field and very quick to capitalize
information
this
technology
npportunity.
lt
in
has
launched its website which tells buyers about SS M products.
41
APTAMA buyer dictinnarv;
All Pakistan textile mills publish a directory, which includes prospective
buyers. This dictionary is published regularly. Marketing department carefully
analyses it and find buyers for its quality prnducts.
4.3 Pricin Strate
Pricing is the most important strategy in the overall strategy adnpted by SSM because it
is directly related to incentives nffered and price fixation. The must common factors that
effect prices are:
J-Change in price nf cnttnn;
Change in price of cotton directly effect on yarn prices in
situation of increase nr decrease. Because the cDtton is raw material that spinning Mills
are using for produce nf yarn. So the change in cotton prices effects rim yarn prices.
2
ver
eu e
I
Yarn prices of SSM also effects by the rules and
regulation of Govt nf Pakistan and due to International Govt in case of increase in taxes or
due to new duty oz tariff
3- eCat
i
SSM has to facing domestic as well as international competition. There are
so many domestic and international spinning groups that are prnviding yarn product from
all over the Pakistan. So competitive analyses is also carried out before fixing fares.
4- Price Adjustment;
Before
setting prices of products various elements
are kept
into
mind
such ass total manufacturing cost, commission of the agent and L/C terms
includes shipment terms and transpnrtation cost etc.
Customer is nf utmost important. lf customer is old, his track record is good and
enjoys a favorable repute so profit margin my be reduced. Prices area determined
42
nn cost basis by adding certain percentage of profit. This is highly sensitive area. In
2005 all qunta barriers has lifted so pricing has become a crucial factor
4.4 Di
As mentioned earlier, Shafi Spinning mills limited has its agents in each
exporting.Country.Plac includes, channels from producers tn final consumers.
More ever SSM has following strategies for distribution of it’s yarn prnducts.
°
Brokers on domestic levels.
°
Sales Agents on International levels.
°
Finished goods godowns in domestic operations.
°
Own transport for delivery ofo rder.
4.5 Promotional Strate
Shafi Spinning Mill Ltd run advertising
and promotion campaign on
large scale. The promntion of products can be classified in twn ways,
1. Direct Marketing.
M. Indirect Marketing.
Direct Marketing,•
Promntional activities include presentations, free samples.
•
Presentatinns.
43
These are given to customer in Perl cnntinental Hotel and other different
Places etc.
•
Free Samples.
Free samples are also prnvided so that customer may get an idea
about the quality and excellence nf SS M.
•
Agents.
Direct marketing is done through agents.
center has been established names
marketing design). In
as
In
each
CMD
country
Cnmpany
a
display
( concept
Germany, products of Shafi Spinng mills limited
are displayed in an exhib ition ( Frankfurt)
•
Sales Prnmntinn Manager’sTnurs.
Sales Prnmotion Manager Tnur is also arranged. These tnurs are
arranged to find new buyers in foreign market.
•
Agen ts.
Indirect marketing is done through agents.
SSM
has
direct
contact
with agents who deal with customers on behalf of SSM. The agents
make arrangement between both the parties buyers and sellers. The
agents received cominissinn fur their services.
ADVE RTISIN G
0 Sign Board.
44
0
Print Media.
0
Calendar and diary.
0
Magazines.
0 E-mail and post mail.
CHAPTER S
RITI AI ANALY
1 have gained the practical exposure in a real working environment. 1 have learned that
twn things are most impnrtant in Marketing department that is Communicatinn and
Respnnsiveness in their assignment. 1 have learned interpersnnal and communication
skill and build confidence.
Internal Environment Analyses:Internal Environment Analysis includes strength and weakness within SSM, which are
explained belnw.
Stren pths:
V
Export- nriented organizations.
V Highly skilled labor.
k Talented marketing managers.
V Qualified finance staff.
V Professionalism in the employees.
k Corporate culture.
V Sound policies.
45
Strong group.
V Successful Histnry.
k
Computer infOf’matiDrl system.
V Leads towards Paperless organization.
V Availability nf raw material at cheaper rate.
k Products are technnlogy competitive.
V Innovative products.
Customer nrientation.
k Efficient production system.
Weaknesses:
m
Work over load on staff.
m Time miss management.
m To much centralized operation.
m Rules violation.
m Excessive emphasis on cost effectiveness.
m Below average marketing skills.
m De motivated staff
External environment Analysis: External Envirnnment Analyses means envirDnment prevailing outside SSM like
competitors, stakeholders, and economical and technological environment. Major factors
of external environment is an opportunities available in the market for the SS M &
Threats being posted by the External Environment to SS M, which are as under.
As far opportunities are concerned that are-
•
Rapidly growing economy.
•
lncreasing government incentives for expo rts sectnr.
4ti
•
Enter new markets nr segments.
•
Computer technolngy imprnvement ( online shipment tracking).
•
Vertical market integration.
•
Faster market growth.
•
Untapped market of Russia and Europe .
â• Intensive competition.
4• WTO.
4• Child labor propaganda by various organization.
â• Pnlitical instability in Pakistan.
fi* Globalization.
fi• Labour law modification.
5.1 Successes and Failure of Different Products With Reasons:
Huring my internship in SSM evaluate different products / services and their success and
failure. Those are listed below.
Successful Products;
°
8/1 soft in local packing due to high quality.
°
10/1 soft in local packing due to high quality.
•
10/1 hard in export and local packing due to good packing.
•
20/1 comber hosiery in local packing due to high demand.
•
30/1 comber hosiery in local packing due to blended quality and less cvb.
Failure Products:
o
5/1 soft yarn in local packing due to shade.
o
10/1 slub yarn in local packing due to low demand.
47
o
52
8/1 Lycra yarn in lncal packing due tn shade in color.
or Co
eti or of h Or
n
on
SSM has to face domestic as well as international competitors. Details of which is given
below.
Domestic Competitors;
o F ahed Spinning Mills Ltd.
o Quality Spinning Mills Ltd.
o MG M Spinning Mills Ltd.
o N eelum Textile Mills Ltd.
lolnot rn ti n
et t r
•
Sapphire Mills Ltd.
°
N ishat Group.
•
Shadman Group.
•
Bhenero and Blessed Group.
•
G hulshan and Ghulstan Group.
•
Raiz Textile Mills.
°
Kohin oor Mills.
I the
anization:-
SSM has very bright future. After the incident nf 05 March 1992, when lot nf spinning
has been bankrupted, SSM remains its operations all over the world.
Plannin
Dire
Mana
ment:
45
After the SAF TA role on Pakistan's textile sectnr. The management of the SS M decided
to move their urbanization tnwards new planning, new directions and tnwards new
strategies. For this purpose the Chairman of the company and the M.D of the cnmpany
arrange for a meeting they also invite the Mills Mange o fthe organization in this meeting
in whi1they discussed on these p oints.
°
to hire new professional staff.
°
to work under a quality pnlicy.
°
to work under the I.S.O term and conditions.
°
To start the ring spinning production and ring comber production.
°
FDr the establishing the Lahore Office and a sales office in the Karachi.
•
For the appnintment of new marketing staff and hiring of sales and quality cnntrol
staff.
°
To purchase new and modem quality control instruments.
•
To come in the list nf competitors and compete with them.
•
To increase the ratio of the export product and get more and mnre contract form
the foreign contractors.
•
To start a emplnyee training prngrainme and establishing nwn training school.
•
To get I.S.O certification and wnrk under his permission.
After these points nf meeting the management nf the SSM worked under these points and
they complete following work
They appointed Mr. Zafar (Bsc textile from German)as General Manger and
Mr. Tariq stet his duty as mills manger under the control of new G.M.
They established a o ffice in Lahore office and a sales office in Karachi.
They get registration from I.S.O and start wnrk under it’s rules.
They appointed new marketing sales and accounts.Finance staff
They manage funds for the purchase of new ring back process frames.
They establish non training center for the training nf the workers.
49
Replacin g & Up-gradin g Machinery;
SSM gradually replacing its frames, the ring section is consists on new Rieter frames.
Similarly they are replacing the old machinery in open-end section for more excellence
quality and for the statisfaction nf custnmers.
Organ izatinnal Restructuring;
Management of SSM works hard to improve the image of product lots of steps are
planned in restructuring of the organization like.
Sale of old machinery and scrape.
Rationalization of intematio nal route network.
C lnsure of less productive parts.
Adding additional capacity.
Improvement on crew utilization and layover patters.
CHAPTER 6
Short-falls/Weaknesses of the Marketin De artment:
1- Lack Of Communication;
Communication is the most important aspect in the marketing terminologies. But here in
SSM Marketing Department relationship building is very weak with Sales Agents etc.
and in spinning industry Business relatinnships are very important for customer retention.
T
2 he
rve
Targets are very important in marketing fields. Although there are SPOs in SSM
Marketing department but they are not given any specific target.
3- Mndern Marketing Tnnls;
Huring my internship in SSM marketing department, 1 noted that beside of all efforts
made by marketing management there is still need of modern marketing tools and
techniques.
4- Lack nf prnmntinn;
50
Advertising is one o fthe must effective tools nf promotions but it is not being undertaken
effectively by SSM marketing for unknown reasons.
5
k i
S
e
Although SPO’s (Sales Promotion Officers) obtain market information system through
various sources. However, there should be systematic and organized Marketing
lnformatio n Department tn evaluate the tnols and techniques nf other spinning mills
before going tn launch any feature etc.
T i i
f
k i
el
Training is the most impotent concern for the marketing personnel but there in SSM
although training module and criteria is available fur them but that should be improved
on the gmund of new market changes.
A
li
i
O
ke i
i
Although there are well defined Marketing Strategies by SSM but due to lack of
Check and balance methods strategies are not being adopted by the concerns due tn
bureaucratic behavio r.
8- Custnmer Contact;
Another shortfall of SS M Marketing Department is there lack of P.R. We know that
feedback is very important in today’s customer driven environment. So SSM should think
on this effective marketing tool.
6.1 Weak areas. which need to be improved
There are many weak areas for imprnvement in this company tn attract more and more
customers.
•
To understand “Customer is a king”.
°
To find the more opportunities nf the business.
•
There should be conducted regularly training prngrams.
•
Top management should take interest for the implementing the marketing co ncept
in the cnmpany.
•
The commitment should be honnr with clients.
°
To provide the proper facility to emp loyees.
°
To develop a proper vision and mission statement for company.
°
There should be proper workload on employees.
°
There is need of improvement for sales promotion policy.
°
There should be developed a marketing plan prnperly.
CHAPTER-7
on lusions & R
mmendation I
vement
7.1 Conclusions,
This internship is proved to be very helpful for me. 1 got a lot of knowledge and also
the practical aspect of the life. lt is my first experience which is obvinusly very
tough but it will be very beneficial for us in the future.
Besides the abnve mentioned 1 think that Sapphire is one of the best grnup of
textiles in Pakistan and have good repute in the industry of textile as well as Asia.
SSM is an expnrt oriented organization more than 70% of their Open-end and Ring yarn
expnrting in different countries.
Marketing department of SSM is very efficient with stro ng cnmmunication and
negotiation skills and all the members of marketing team behavior leads towards
responsiveness.
All departments
run smoothly with proper planning, control, and qu ick decision making.
.52
At the end 1 would like to express my thanks to the Accounts, Finance, and
Marketing departments for giving time and sharing valuable information. This
information gave me gnod understanding of some basic concept being practiced.
SSM is one of the great, strong, reputed, thrilling brilliant, successful and develnped frnm
every point nf view.
.2 Re
As far as my recommendations my suggeastation are as follow.
1- T
Targets can be achieved properly and thoroughly as assigned by the Head Office. The
local sales staff, agents by providing better facilities like better conveyance and good
wnrking environment in which no one feel boring and tied himself with the duty but that
environment in which every emplnyee work free with nut any pressure in this way he can
give good performance. Incentives for example performance award and good increment
rate and bnnus as well and more ever allowance on Eid days to the customers, in the
result they should achieve these targets.
2- Cnmptaints cell;
Complaints regarding Customer Services and other prnblems should be solving after to
know whole the problem and reason of that problem and also as well as to know ah out
responsible person of that complaint on prior bases to avoid hard image.
3- staff Aiioca‹inn;
They should appoint high level management on experience basis and middle ,lower
management staff on the basis of qualification regarding to department and duties and
than they should trained them for better performance.
4- Proper Mnnitnring;
There should be pm per monitoring of every department and nn every activity regarding
sales, purchase, marketing etc at all level to achieve the organization’s objective i.e. tn
gain maximum business/profit and prnvide better services to the customers
6- Check & Balance;
There should be check & balance system in the marketing department on expenditure and
emplnyees punctuality, to cover malpractices, irregularity etc.
7- Time factnr;
Time factor is very important in any spinning mill sn while choosing schedule there
should be keep in view cnmpetitors and customers requirements etc.
8- Prnper jnb descriptinn:
Proper job description should be resulted by SSM for its employees so that they are clear
about their jobs. Excerpt of it beside of depending daily wages and cnntractual employees
SSM should concentrate on regular employees, so that they can be satisfied and can work
efficiently.
The Company must imprnve production efficiency thmugh increased
automation, re-engineering of system, backward
and forward integration
of operations, moving up the value chain, strategic collabnratinn in the
scenario of WTO.
They should active participate in regain textile exhibitions like one that will
take place in Hubai. ln which leading manufacturers and
decision
makers will participate frnm south Asia, and the middle east.
They should adopt proactive approach in order to avoid comp laints, delays
and problems.
lV.
In order to retain and increase customer base, there is need
for sound
promotional activity.
Focus on creativity and innovation in all respects.
The threats of new cnmpetitors should be considered in all types of
decision making
’
.54
Funds are arranged by taking short term loan facilities from different
banks to finance Cntton prncurement. However if a reserve is created on
monthly basis and maintained
in reserve account for financing such a
big arrangements then financing cost can reduced by talk short- term
loans.
Directors of the firm should delegate signing authorities for routine
documents to Chief Financial Officer nr Manager Accounts and G M
finance,
like signing cheques upon specific limit so that finance matters
can handled easily and on time by finance officials
” ix.
Duplication of wnrk. there should be a reasnnable modification in
the
Accounting software. Gate Entries and Dispatch advices for cotton
received returned should be
prepared
in Accnunting software at
mill
with unique series of G E and DA numbers. On the basis nf these
dncuments, inventory record and reprints are maintained in system then
data and hard copies of G E and DA should be received at Head office.
x.
1 also observe that some times a lot of confusion is created due to
cnmplicated procedures. Sri try to adnpt simplicity in the documentation
and by resolving the communication gap with the other departments
xi.
ln the department of Telemarketing, nnly female members are serving. Their duty is
dealing with farmer and dealers. Mostly farmers hesitate interact with female staff, so
there should be male staff in telemarketing department.
Sales and marketing manager is always overburden, whole cnmpany depends upon
him when he is away from the head office a number of works gn pending, There is
need to appoint another manager, whn could work in his absence.
Purchase and audit manager is same person. lt is very strange a person whose audit
should be done is himself auditor. Sri these posts should not be unified in same
personality.
”
8.1 REFERENCE
RCE
•
Prnduct information
by Marketing & Productio n Department
°
Emplnyees Profile
by HRM & ADMIN.
°
Business Volume data
by Accnunt and Finance Department.
°
www.shafi.net.pk
°
APTMA magazine rim all Pakistan Textile Mills that provides knowledge and
history of textile sector.