STYLES & TREND

PRESENTED BY
BUSHRA KHAN
KAINAAT ISMAIL
MEDIHA SAJJAD
SHAHER BANO GARDEZI
MBA:2-A

INTRODUCTION

COMPANY BACKGROUND

CASE FACTS
In 1993 textiles formed 65% of the country`s

exports of 6.8 billion with knitwear clothing at

$462 billion.
In 1992 Pakistan produced 13.2 billion bales of
cotton.
In 1993, an integrated knitwear unit of about
10,000 dozen per month capacity required a
capital investment of about 60 million.
Vast majority of integrated units operated in
Lahore city.

 The size of spinning sector could be gauged by

the number of spindles.

Five years ago virtually all the accessories used in
apparel manufacture were imported while simple
items like buttons were manufactured locally.
Tags attached to garments were imported from
Hong Kong because of requisite quality of printing
unavailable in Pakistan.
Knitwear producers could buy on credit ranging
from 30 days upwards.

SWOT ANALYSIS
INTERNAL FACTORS
STRENGTHS
1. Low Labor Cost-higher
Profit Margins
2. Strategic Vision,
Professional Attitude.
3. Commitment Of The
Partners

WEAKNESSES
1. Lacked Expensive
Equipment
2. Lacked Finances
3. Policy Decision Making

EXTERNAL FACTORS
OPPORTUNITIES
1. Integrate Backward Or
Forward
2. Target The Middle Eastern
Market
3. Remove The Agents
4. Major Business Through
Lower Margins

THREATS
1. Established Textile
Industries Entering This
Market
2. Bangladesh- Better
Operations, Advance
Equipment
3. Political Instability And
Power Shortage

PROBLEMS

High Quality & On-time

Delivery
Unskilled Labor & Impurities
Quality Assurance
Printing
Bargaining power of buyers
Bargaining power of
suppliers
Competition
Management

CORE PROBLEM
NO STRATEGIC MANAGEMENT
Theres no clarity of the Strategic
Vision for the organization. . There are
no clear strategies formulated in order
to fulfill the dream of a fully integrated
Unit through Expansion & Growth

THREE STRATEGIC OPTIONS

Scenario 1
Manufacturing & scattering
Ball over on sales and harvest
Scenario 2
Manufacturing & dissemination
Impact on Sales and Growth
Scenario 3
Manufacturing & Distribution
Impact on Sales and Growth

Alternative # 1
Alternative # 2
Alternative # 3
100% Sales to US Market 50% Sales to US Market Sales to Markets Other
in Category 338
and 50% Sales to
than US
Europe & Other Market s
Advantages:
New potential Supply
Channels
Long term relationships

New potential Supply

Channels
Long term relationships
Steady supply orders

No Need to attend
foreign Fairs or visit
buyers offices
Low Quota Investment
Lower Working Capital

Disadvantages:
Quantitative trade
restrictions
Stringent/difficult to
meet Quality standards
Short Lead times

More Stress
Smaller & costly order
Stringent/difficult to
meet Quality standards

Lower Margins
Less Market Coverage

RECOMMENDATIONS
Outsource or an
Agreement
Long-term
relationship

Expansion
Europe, Middle East

Bargaining
Power of Buyers
Quality checks
TQM, 6 sigma,
certifications

Bargaining
Power of
Suppliers
Quick Ratio

STRATEGY
SUPPLY CHAIN
STRATEGY

MARKETING
STRATEGY

STRATEGY
MANAGEMENT
STRATEGY

FINANCIAL
STRATEGY

SUPPLY CHAIN STRATEGY

Local/Foreign
Retail Outlets

BACKWARD INTEGRATION

FORWARD
INTEGRATION

MANAGEMENT STRATEGY
Resource
Oriented
Approach

Integrative Consideration Of Economic,

Social And Ecological Resources

Sustainable
Resource
Management

Leads To Innovative Solution To

Rebuild Economic Substance

Human
Resource
Strategy

Enhancing
capacity,
motivating staff,
improving quality.

EXHIBIT ANALYSIS
Exhibit 1

Current ratio, quick ratio, and days receivables and pays

payable highlights some negatively debts have decreased
over time. Total debt/total assets changed from 37.08% to
4.81%.

Exhibit 2

Export has grown from 1988 to 1993 from $1669 Million

Potential Opportunity.

Exhibit 8

Pakistan scores lowest in production and management

dimensions relative to other competing countries.

Exhibit 9

Pakistan has lowest value to volume ratio and thus it earns

less foreign exchange with massive imports.

Exhibit 13

This exhibit shows how increasing general trend in quota

prices and suggests a great degree of volatility for category
338.