Omi Shalimar

8/13/2019 Omi Shalimar

1/50


2/50

Executive Summary

Shalimar Cotton Export (pvt) Ltd is renowned name in the textile business; it started

its working in 1980 from a small unit of knits in Faisalabad with a capacity of few tons

production per annum. It gradually got the success and now it has buyers from all over theworld. For me working in Shalimar was a thing of great pleasure as it has best business unit

which is dealing with different Departments and processes, besides this having diversified

workforce which provides the students interns a real time learning environment. During my

six weeks tenure in Shalimar, I have passed a equal portion of my time in each department, in

which I have learnt about the Labor policies, ISO certification procedures, Human Resource

Information Management System (HRIS) as well as the major Human Resource functions

and on the other side I have also learnt about processes they do in their organization and also

about marketing strategies. I have pen down all of my experiences in this report. As I am

doing my specialization in Marketing and wanted to adopt marketing as my profession so this

internship will be very beneficial for me and my career. In my report I have written about the

business unit of Shalimar as well as the departments which are playing a major role to make

it a successful organization. I have also performed different analysis to get a clear picture

about the company and threw light about the company future. In a nut shell, Shalimar Cotton

Export (pvt) Ltd is a learning organization, it not only provide a learning platform to its

employees but student interns as well.


3/50

Table of ContentsAcknowledgement .................................................................................................................................. 1

Executive Summary ................................................................................................................................ 2

Introduction to Shalimar Exports ........................................................................................................... 4

Company Profile ..................................................................................................................................... 5

Introduction ............................................................................................................................................ 6

Historical Prospect .................................................................................................................................. 7

Vision, Mission and Corporate Goal ....................................................................................................... 7

Management Hierarchy .......................................................................................................................... 8

Decision Making Process ...................................................................................................................... 10

Business Units of Shalimar ................................................................................................................... 12

Strategic Business Unit Analysis ........................................................................................................... 14

Industry Analysis ................................................................................................................................... 15

Present status of Textile sector in Pakistan.......................................................................................... 15

PEST Analysis ........................................................................................................................................ 18

SWOT Analysis ...................................................................................................................................... 22

Departments of Shalimar ..................................................................................................................... 26

Marketing Mix (4Ps) of Shalimar......................................................................................................... 38

Product ........................................................................................................................................... 38

Price ................................................................................................................................................ 39

Promotion ...................................................................................................................................... 40

Placement ...................................................................................................................................... 41

Conclusion ............................................................................................................................................ 43

Recommendations & Suggestions ........................................................................................................ 44

Learning as an Internee ........................................................................................................................ 45

Limitations during Internship ............................................................................................................... 47

The Effect of Internship on my Future Career ...................................................................................... 48


4/50


5/50

Company Profile

Name Shalimar Cotton Export (pvt) Ltd

Logo

Slogan Where Quality Matters

Established in 1980

Geographical Location Shalimar Road, OFF Sargodha Road Samana Pul.

Faisalabad - Pakistan

Industry Textile

Major Units Weaving, Dyeing, Finishing, Designing, Printing

Number of Employees 2500 Employees

Group Turnover US $ 100 million

Mode of Business Business to Business

Business Based Manufacturer and Exporters

Major Buyer USA, Europe

Certifications ISO 9001-2000


6/50

Introduction

Shalimar Exports is countrys one of the major export oriented companies which mainly

deals with the top quality fabric, home textile and institutional textile. Management at

Shalimar believes on the quality philosophy thats why from yarn to the fabric manufacturing

and from textile to the garment, in each step quality assurance department is there to verify

the quality perhaps this is one of the major reasons of success of the Shalimar in textile

sector. Currently it has more than 2500 employees which are currently working in different

departments of Shalimar and helping the organization to achieve its mission. Shalimar took

its start in 1980 from the small knitting unit having worth of 1,400,000 PKR and now from

the figures of year 2012 the company has the worth of 5,000,000,000 PKR.

Shalimar Exports comprises of Dyeing, Knitting, Stitching, Woven as well as

Embroidery. Evolution of the Shalimar started two decade back and there are several factors

involved behind the success story in which the top most is the upper management philosophy

particularly visionary leadership of Mr. Ijaz Ahmad who develop this business empire in this

age of high competition. Beside this its latest production system, quality philosophy, niche

marketing are all there to make it distinct from rest of the other textile manufacturer.

Corporate value of Shalimar includes Integrity, constant self improvement through

continuous learning, Leadership, Teamwork and Social Responsibility. Shalimar Focuses on

four major corporate pillars.

1. Customers2. Suppliers3. Employees4. QualityThere are two internal props that are employees and quality through which Shalimar is

able to gain and retain the customers satisfaction as well as the suppliers commitments. It isthe company which is highly committed to continuously providing superior customer value,

worker dignity, shareholder satisfaction and society welfare by following the guiding

principles like fulfillment of customer need, communication with vendors, Strict compliance

with quality control system, on time deliveries and Career development opportunities for

employees.


7/50

Historical Prospect

Shalimar was established in 1980 with a single Composite Knit Unit, Shalimar Group

has grown leaps & bounds to branch out not only within its core textile business but has also

incorporated technology oriented services in its line of businesses. Today the company

comprises of Dyeing, Knitting, Stitching & Weaving as well as Embroidery units

In this about 33 years from the starting point of Shalimar it achieves different mile

stones. From a single composite unit of Knitting and about 200 employees now it has more

than 2500 employees in its different unit. The growth of Shalimar is not sudden it took years

to reach at this position. However its worth noting that it remains the property of same

owner who was the actual founder of the company and still it is under their supervision. The

owner of Shalimar is amongst the 20 richest families of Pakistan.

So, from the start the financial position of the Shalimar was quite strong and from the

beginning of the period it has sound position which encourages it to grow.

Vision, Mission and Corporate Goal

Though in the past years, there was greater downsizing and the major changes at

management level throughout the organization but after that from the beginning of year 2009,

Shalimar has been able to stabilize in the market. Shalimar was one of the victims of the

crisis of Textile sector but it is for shorter period. Shalimar has developed its mission and

vision by keeping in view the industry situation as well as the competition in the Market.

Corporate Vision

Shalimar Vision statement states that

Be the first choice of worldwide buyers and brands to choose

us their off shore manufacturing house for their world wide

leading products.

Mission Statement

Shalimar has quite long mission statement which covers all the components of

mission statement like what we are? What we do? And how we do? It states that


8/50

We earnestly and sincerely look forward to satisfying our clientele. We are

continuously researching in innovation and the latest technology to keep pace with

market requirements. Aim is to produce the best range of fabric and embroidery in vogue.

We pay attention to cost effectiveness; therefore we are able to give quality at competitiveprices. We pay due attention to our environment and avoid pollution. Last but not least,

we abhor child and forced labor.

Corporate Goals

The three pillars on which the Shalimar Cotton Export (pvt) Ltd has its corporate

structure are

1.

Continuous improvement2. Customers satisfaction3. Quality of product and system

All these pillars are the pillars of quality system which the organization owns in order to

satisfy its customers. Continuous improvement means the process of quality is not still at a

certain point, it continuously moving towards the improvement and cant be still to some

location, and the sole objective of this continuous improvement is to satisfy the customers

need by giving the customer the quality products.

Management Hierarchy

Shalimar Textile Limited is highly autocratic organization in which authority is in

some hands that used to run the organization by utilizing their authority. Decision making is

there at the top most of the organization and employees find little space to implement their

own decision.

Top Management

As it is a private limited company so, its shareholders is its family member and the

ownership is in the hands of the chairman Mr. Ijaz Ahmad himself. The owners son Mr.

Khurram Ijaz is actually own the house of Chief Executive Officer and below him is the

Director Mr. Waqas Ijaz who is the brother of CEO and son of the Chairman and really very

close to the CEO.


9/50

Chairman Ijaz Ahmad CEO Khurram Ijaz

Director Waqas Ijaz

Middle Management

In this level of Management there are the managers and assistant manager or in some

cases there are some posting of officers who actually play a role of bridge between the top

level management and the low level management. Middle level management is the personnel

who are actually working for the organization in practical ground. As I have described earlier

that it is highly autocratic organization so middle management usually dont have authority to

make the decision even of their daily routine task, they have to go for the head of concerned

department or towards the director. Top management usually takes strict action when ever

middle management impose its authority and high plenty has to pay by that particular

individual. Middle management is that part of management which always remains the victim

of job insecurity and any change in the policies of top management can cause them to lose

their job. Might be this is the possible reason that efficiency level as well as the motivational

level at this stage of the employees remain at the edge of extinction.

Export Manager M. Usman IT Manager Abdul Qaddose Finance Manager M.Faisal

Marketing Manager Bilal Ahmad


10/50

First Line Management

Usually in services department there exist no post of first line manager except in

admin department where some clerical posts are there who are supposed to be the first line

manager. In production level there exist supervisor posts including the general supervisor,

quality supervisor, stitching supervisor etc. People on these posts are responsible to answer

the middle management. Middle management acts as a role of bridge between the top as well

as low level management. Turnover rate at this level is very small and on the average people

work for the organization for 8-10 years. The possible reason is that the risk of job insecurity

is very low except in some chances as in the year 2008 there was widely downsizing in the

knits and dying units of Shalimar and for those more than 800 workers got fire from the

organization.

Decision Making Process

As the organization is highly bureaucratic in its structure and organization culture is

also autocratic. Command and control of the organization is in few hands and these few

hands are responsible for the decision making and rest of the organization is the follower who

used to follow the orders imposed by the top management. In centralization decision making,

some time when the thing is to make quick decision than it acts affectively while when in

some cases the failure of the decision very serious result.

Shalimar H uman Resource Dil emma

In year 2008, Top management decided to start downsizing in two of its

units that are Knits and dying, the sudden downsizing was quite shocking

news not only for labor level but also at the middle management level.

Without taking in confidence to the human resource department, CEO and

directors of Shalimar decided to change the policy of gratuity for the

employees. This causes a serious curse in the employees and they started

agitation in the Shalimar resultantly Shalimar has to close its working for

more than a month. The market value of the Shalimar started decline and

turnover rate in other units also give rise to 50%.


11/50

Decision making process in Shalimar started

from the CEO and director which are called the competent authority in the HR manual. After

getting the consensus from the director, CEO issues the order to the concerned head of

department. Head of department in some causes study the feasibility of the decision (this

happens in few cases) if the decision is feasible than HOD put forward this decision toconcerned managers or assistant managers and they implement the decisions and later on the

results are being compared that it give rise to the acquired results or not. Here the one of the

major role is also the unit manger or admin manger which on actual is responsible for the

whole unit. It is more responsible for the administrative problems in the organization rather

than the decision making.

As it is highly bureaucratic organization thats why decision making power is in few

hands, from the head of department, the decisions got implemented to the concerned

managers and assistant manager from where it proceed further to the implementation on real

grounds.

There is a larger gap exist between the decision making body and the implementation

of the decisions thats why most of the decisions of management dont get the success as it

should or you may say that the policies in Shalimar cannot implemented with its real soul

rather than it got impose on the employees thats why it does not lead to the required results.

In few cases it leads to the negative phenomenon.

In few cases it has also some positive aspect as there is centralization of command so

the implementation of decision is not a big problem and people agitate fewer as compared to

those textile mills in which there are decentralized decision making bodies. Beside this

management can make a quick response to the external forces and this may lead to the

flexible decisions.

Decision making bodies


12/50

As you can see here in this figure the decision making body at Shalimar Cotton

Export (pvt) Ltd comprises of the competent bodies in which CEO, Director and Admin

Manager are there to make the decisions and no other stakeholder is there.

Business Units of Shalimar

Shalimar Exports is a well known name in the textile industry. It was established in

1980 since then Shalimar Exports work in this field of textile to form innovation and

exploring of new efficient and effective productive ways to generate chic and classy products

for its billion of customers all over the world. Shalimar has been an expert and biggest

producer of Fabric and Home Textiles at international level along with Knits and Woven

having an annual turnover of $100 million.

They have been working on the path of latest productive systems and technology

alongside its implementation that has moved them forward and has opened new areas to

move high in the field of textiles. Buyer Satisfaction is their ultimate goal. Keeping in

view their performance besides aggressive marketing they have rigid guidelines on the

Quality Control, on time delivery and satisfaction of the buyers.

The same passion and entrepreneurial spirit on which the Company was founded on

more than 30 years ago continues to drive their ongoing success. Shalimar is a complete

vertically integrated company; all its requirements are under one roof to serve the demands of

todays markets and to give the buyers the best service possible. Registered as Shalimar

Exports (PVT) ltd. and is being headed by Mr. Ijaz Ahmad. Today the company comprises of

the major five units and all of these units have state of the art production system. These major

units are

Weaving Dyeing Finishing Designing Printing

All these units work cross functionally while on financial gains and losses each unit is


13/50

independent and have no impact on the functionality of

other units. I will briefly explain about the working of this entire unit.

Shalimar Weaving

With over 25 years of experience in the manufacturing of woven fabrics,

commencement of woven garment was a logical extension of business. Shalimar woven was

established in 2002 as an independent unit to cater for the growing global demand for high

fashion home textiles. Due to a strong technical and professional backup, at present, Shalimar

is producing 8000 bed sheets per day and in the near future, management plans to enhance

this capacity to 15000 sheets per day.

The Weaving unit is fully supported by highly skilled professionals along with state-

of-the-art stitching and washing machines from Japan, Italy and Turkey enabling them to

produce high fashion products.

Shalimar Dyeing

Shalimar has state of the art machines for dying; there are two types of dyeing are

available at Shalimar that are Yarn Dyeing and Fabric Dyeing. For each type of dying

different machines are being used in which different type of dyes can be used according to

the need of the fabric as well as the demand of the customers. These types of dyes are

reactive dyes which can be used to make covalent bond with the fabric, Disperse dye can be

used to make a deep penetration in the fabric, Vat dyes and direct dyes can be used to make a

overlapping with the fabric.

Process I nvolved in Dying

Following are the steps involved in dyeing the fabric

1. SingeingIt is the first step involved in the dying process which is used to remove protruding

fibers from the fabrics.

2. DeSizingAfter removing the scam from the fabric, temperature is given to the fabric to remove

the size for uniform dyeing (over dry). This process is used to save the fabric from

shrinkage.


14/50

3. ScouringScouring is the step used in the dying process for removing the added and natural

impurities from the fabric.

4.

DetergentsDetergents are being used to remove soil and keep it suspended in Water. So they

dont penetrate again in the fabric.

5. BleachingAgain bleaching powder is being used to remove the stains and other dirt material

from the fabric or yarn which may remain on the fabric.

6. Removing of colorYarn is usually of off white color when in neutral state. But in some cases some dirt

particles or added impurities are there which change its color. For making it neutral and

removing the color from it bleaching powder or liquid bleach is usually used.

7. Length & Fineness of fiberAfter getting the equal lengths and fine fibers, cutting of yarn is being done. Here the

process of Dying got completed.

Strategic Business Unit Analysis

Shalimar has different strategic business units and management at Shalimar is well

aware that how to use these units strategically. In order to fully analyze the business units of

Shalimar that are Weaving, Dyeing, Finishing, Designing, Printing, I have used different

analysis which not only give the true picture of the companys different unit but it also gives

the depiction of the overall industry analysis in which company is currently working.

There are four types of Analysis which I have performed in order to explore the

working of the organization.

Industry Analysis PEST Analysis BCG Matrix Analysis


15/50

SWOT Analysis

All these analysis have been performed by getting data from real time industry

situation as well as the organization. Research articles, news articles, internship reports,

manuals are being used in order to effectively analyze the working of the organization. Thehistorical data for the analysis has been taken or maximum 5-7 years back while current data

till the august 2009 has been used. Due to lack of availability of financial reports I unable to

perform the financial analysis of this organization however revenue as well as cost has be

mentioned by available data on websites and other companys documents.

Industry Analysis

According to the ECONOMIST intelligence report of August 2009 for Pakistan the

following observations have been made: Despite Government efforts to diversify exports and

widen the industrial base, the industrial sector remains dominated by the Textile sector.

Textile Sector still represents 46% of total manufacturing and provides 68% of Pakistans

Export receipts.

The strong performance stemmed from two factors:

1. Increase in import quotas especially by USA, EU and TURKEY2. Textile industry has invested over US$1.5 billion in new technologies and

modernization in the last 5 years.

Efficiency and the innovation in textile is the only hope to get the country out of

economic problems. Beside this economic crisis, textile industry is the only industry which is

still a source of revenue for the country.

Present status of Textile sector in Pakistan

Though the textile sector of Pakistan is well developed while in textile our country is

lacking behind in Textile Engineering Sector, this particular part of the textile sector is

underdeveloped and underutilized. Mostly it caters in the form of spares, components for

modernization and machines used in cottage or small scale industries.

A quick look at the structure of Pakistan Textile Industry shows that most of them are


16/50

cottage industry, small/medium industrial units and few

large integrated states of art units. The number of units which fall under each category varies

from sub-sector to sub-sector. Similarly the Textile Engineering Units also vary from small,

medium and large in size. The Textile Engineering Industry comprises approximately 80%

small workshops, 15% medium engineering Units and 5% large Engineering Units. It will notbe out place to mention that the large engineering units are in Public Sector.

On the basis of initial survey of Textile Engineering Units (Not complete yet),

approximately 500 units are engaged all over Pakistan, employing approximately 50,000

work force which is mostly skilled. Even under the present conditions and without any

support, Pakistan Textile Engineering Industry is providing import substitution worth around

one billion US dollars. This sector also exports to small and medium Textile Units in

Bangladesh, Iran, Sri Lanka, etc.

Competition

The present Textile Engineering Industry is up against competition from smuggled,

under invoiced and miss-declared components, parts and accessories. For example, in case of

second hand machinery, there is little or no check and the competition mainly rests on lower

price. Machines smuggled especially from China, India, Taiwan are not better in quality but

are selling cheaper. A bold initiative is needed which can boost the production as capacity

and markets are there, only change in environment is need.

However if we look at the Shalimar, Shalimar owns the state of the art machinery

which is imported from the Italy and Japan it definitely gives the competitive advantage on

its competitors. Due to globalization, there has become a price war between the local

competitors also. The textile industries are focusing more on succession planning to get

success in future. They are investing in the Research and Development sectors to cut down

the costs and to produce a high quality product.

Besides this, Shalimar has to face competition from:

o Strong local marketo New entrants in international marketo Competition from existing customers


17/50

o Economic recessiono Taxation changes

Before the current time period in the age of year 2003-2006, the whole industry was

in good position in Pakistan and the exports was tremendously improving, internationalbuyers were moving towards the Pakistan as due to availability of quality product on a

cheaper rate but after the year 2007, scenario got change and due to a lot of factors Pakistan

fail to face the competition from the globalized textile units and resultantly units like

Shalimar faces huge losses.

Strong Local Market Competition

From strong local market the competition has been arising from few companies.

These companies are well renowned not only locally but also internationally. In these local

companies, Shalimar has been facing competition at different fields like in some cases,

knitting and in local market in dying and same is the case with the apparel. The Major

competitors are.

Masood Textile Mills

Nichat Mills

Crescent Bahuman

Gul Ahmed Textile

Entrants from International Market

As Shalimar is doing most of its business international, so international market

competition is quite tough and in fact in international competition exists at country level


18/50

rather than at companies level. As the Shalimar is the

major textile exporter is the US and European countries, threats of new entrants throughout

the globe are quite high. The major threatening countries are:

China

India Bangladesh Sri Lanka

Economic Recession

As it is a period of recession and throughout the globe world is suffering from the

economic crisis. In such scenario, affect on textile industry is a natural phenomenon. As the

major sufferers of this economic crisis are US and other western countries and in case of

Shalimar the major part of their exports go towards US and Europe, economic crisis in those

countries causes the Shalimar to certain blockage of sales. Resultantly company started

suffering from losses.

Taxation Change

Change in the taxation policies of Shalimar has also causes troubles for textile

industry throughout the country. Till the age of 2004-2005 there was a massive growth and in

textile business throughout the world were booming but later in the age of 2006-07

government revived its taxation policies which cause a great trouble thorough out the textile

mills. Companies were unable to control their costs thats why in international market

Pakistan loses its control and other rivalry countries like china, Thailand, India, Bangladesh

got in the market.

PEST Analysis

PEST analysis is the analysis which we tend to perform in order to analyze the

external as well as the internal environment in which organization is currently working.

PEST analysis revolves around the four things.

o Political Environmento Economic Environmento Social Environmento Technological Environment

Political Factors

There is not only the national politics involved in the working of the Shalimar but


19/50

international political environment has a direct influence

on the working of the organization. The changes in political government causes to change the

priorities got change and it directly affects the policies, resultantly it has a major impact on

the organizations of that particular industry. There are many factors, which tempt the

organization with Government. Tax policy Rebate Quota Industrial policy of Government in term of textile manufacturer Subsidies from Government Labor policy

These are the general affects which can have an impact on any industry with the

changing in government or political parties. More specifically in textile sector the changing

government induce badly to the companies working in that particular industry some of the

major impact which due to change in political forces happen are as follows.

Minimum Wage Laws

International Policies

Lack of Interest of Local Government

Economic Factors

No doubt that it is the period of recession and about the entire industrial sector got

affected from it and in this case declining period of textile sector is a natural phenomenon.

Economic scenario in Pakistan and all over the word has several affect on the textile sector

some of them are.

Economic Recession

Pakistan has a mixed economy where there is both capitalism and communism

prevailing so the Government intervention in the textile sector is not on the positive side. The

government is not providing any kind of incentives nor subsidies. It is constantly levying

heavy taxes and quotas. In the crisis of power faced by the country, the textile sector has

suffered a lot. The Government did not provide any incentive to the industrial sector in such

a time. The textile industries privately arranged their power generators in such an inflationary

period. This has increased their expenses too much that they are now unable to run their

processes. Shalimar has been one of the targets of such policies also. Due to this, the

company has faced an economic recessionand has closed its units.


20/50

Pricing of Raw Materi al

Due to increasedglobal demandof cotton, the production of cotton and other fibers is

decreasing and this in turn is constantly increasing the price of Cotton. The rising price of

cotton has increased the prices of Yarntoo much. Yarn is the basic thing for the production

of fabric and other products. Shalimar is recently facing this crisis of higher prices of yarnwhich has deteriorated their financial condition too much that all the Dyeing and Knitting

units have been closed.

Oil Pr ices

Increase in Oil pricesand Yarn priceshave caused inflation and Shalimars Weaving

and

Dyeing units have faced recession period. Whereas, the Fabric unit is recovering from

recession and is entering into a new phase of recovery due to an increase in demand ofJeans

and its apparel in international market.

Devaluation of Currency

The strength of thePound sterling, Dollar as well as the higher cost of imported raw

materialshave really made a bad impact on the Pakistan economy in this case selling costis

not aligned with the production cost and companies are not earning as much as much they are

invested in there.

Social Factors

Due to increase in education and technological sector, the buying power of the

customers is increasing at a speedy rate. They are becoming aware about the brands and

latest fashions. Due to this, they are demanding high fashion at a low price in international

market and so the fashion trends are changing at a very fast pace. For this purpose,

Shalimars goal is toprovide latest fashion trends with continuous improvement in fabric.

Besides this, the population of youngsters in foreign countries is increasing day by

day and they are demanding latest trends at large quantity and styles. For this, Shalimar has

to produce fabrics in bulk quantity by decreasing the rejection rate. To achieve greater

quantity, they have to go for latest machinery and skilled staff to produce more and more to

fulfill the demands of the international buyers.

People are becoming health consciousalso and its necessary to focus on the welfare

of the employees by providing them a neat clean and a healthy environment to work in. It is


21/50

also mandatory for the company to educate and inform

people living near the industrial areas about the environment. They should keep the

environment non hazardous.

Technological FactorsTechnology is also a key sector in term of external environment for garments

industry. The technology is working as a substitute for man power with more efficiency. The

industrialist has a solid point that it can save cost in terms of:

o Error reductiono Less labor cost

In order to compete internationally the organization must have to depend on new and

advanced technology. Although the technology, which SHALIMAR was using currently,

wasnot very low but there is no end in business.

Government subsidies

Government has taken initiative to encourage textile industrialists to install latest

machineryso as to introduce efficiency in work. As, textile sector is the biggest contributor

in the economy of Pakistan, the Government has planned to spend on research and

development sector for this purpose. But yet, nothing has been done exactly due to power

crisis and inflation in the country.

Use of I T in M anagement I nformation System

It can be observed that there is an increase in internetuse and mobile technologyat

international level but Shalimar is still not able to communicate efficiently with its foreign

buyers through internet. The obsolete office equipment and the poor availability of the

internet connection are suffering their orders. ShalimarsManagement Information System

(MIS) Department is not competitive enough to upgrade its website contents also.

They do not have the facility of mobile communication system. They are just dealing through

online service by either emails or through telephone calls. But in this competitive and global

environment they need to move to mobile communication to attain growth inE-Commerce.


22/50

SWOT Analysis

Strengths

The internal Strength of the company which its own in the form of human resource,

technology, brand name can be a major reason for its success in this highly competitive

environment.

Strong and Prominent International Image

Shalimar Cotton Export (pvt) Ltd is a well known and a well established company in

the textile sector. Shalimar has set up different contacts with the international buyers over the

years and this clearly is strength for this company. That it is not easy for a company to come

and straight away make a reputation and gain immediate attention of the buyers or customers,

it takes time and Shalimar has taken a long time to make itself a stronger company by

adopting successfully retained its old customers but has also grabbed the attention of other

prominent brands international standards in its products and processes. The Company has not

only.

Latest Technology

This is a very vital aspect of Shalimars success in the export of textile products such

as Embroidery. They are using the latest machinery and equipments in their production. The

embroidery unit is well equipped with latest technology equipments from USA, Belgium,

Germany and Taiwan thus making Shalimar a strong hub for quality product making. Now

the new unit of Shalimar fabrics is being equipped with the latest facilities and the state of the

art machines, which would make it possible to produce 2.7 Million meters of fabric daily.

This is certainly not possible without latest techniques of production.

Competitive Workforce

Shalimar is fortunate to have experienced and well qualified employees in all of its

production and service departments. Production departments have hired well experienced

staff that is specialized in their work. For example the technical manger and productionmanager have experience of over twenty five years which not only make them specialize in

their work but also make them loyal to the company. In the same way, the service

departments have people with Masters Degree from well reputed universities and colleges.

Variety of Products

To compete in International Market by retaining their potential customers, Shalimar is

producing a wide range of products for gents, ladies and children. Fabric unit is producing

400 different types of good fabric in different colors. Latest equipments have been installed


23/50

to achieve this level. The weaving and Dyeing units

which have been closed now were also equipped with the latest machinery to produce export

quality fabric.

Creativity and InnovationShalimar understands and realizes that the door to success lies in the new ideas so for

this purpose they have always encouraged creativity and innovation by adopting the scientific

management system. MIS Department was being set up independently and was authorized to

convert the manual store system and production processes into automatic system to speed up

the work. Research and Development for every unit was also established to promote

innovation through continuous improvement.

Other Strengths

Management Information System ISO Certified Company Diversified environment

Weaknesses

There are some fields in which company is lacking behind in this highly competitive

environment. The weaknesses of the company are

Production capacity

The production capacity of Shalimar is lower than the production capacity of some

competitors. The major reason is the limited production area and less storage space.

Lack of Training and Development

Training and development is an important aspect of an employees daily working. At

times, in Shalimar the new employees are not given the proper training. For example, the

new staff at Accounts and finance department was not given the required and proper training

for the usage of accounting software Oracle Financial, due to which they were hesitant to

use that program. As a result the efficiency of work was reduced.

Boredom Office Environment

The employees have not been provided with the latest and upgraded system to work


24/50

with. They have to work with the obsolete equipments

which not only decrease their work efficiency but also frustrate them. In this way, they spend

too much time on small tasks and waste their energy in worthless tasks.

Lack of Cul ture of I ntri nsic Reward

One of the biggest flaws that employees complain about is that their efforts are not

being appreciated and rewarded. This is the most depressing thing about the organization that

lower downs the morale of the employees. It has been observed that the employees are given

tasks one by one but they are not being recognized for this. The bosses do not spare them for

some time neither have a talk with them regarding the completion of their tasks.

Other Weaknesses

Lack of team work Lack of continuity of Policies Too much Specialized Jobs

Opportunities

Shalimar and other organization like Shalimar has a lot of opportunities, if it properly

utilizes these opportunities than it will be the top most organization.

New Emerging Markets

Shalimar gives opportunity to those people especially who have the ability to work

individually. The organizational culture in Shalimar is based upon individuality that has

made the employees to work in their own direction by not involving in group tasks.

So, the people who work with full honesty and commitment can achieve greater

levels of success and appreciation.

Br ight Local Market

Shalimar is currently working as an exporter for US and other European countries. It

is not currently working on the local market which is also a bright market. People trends are

changing and are moving towards brands. There are very successful brands which are

currently working at local level. In these local textile brands are

Gul Ahmed


25/50

Chenone

Saphire polo

So, Shalimar should also thinking to go for such opportunities if it really wants to

compete with in this highly competitive environment.

Threats

Beside these opportunities which Shalimar and other organization working in

Pakistan have, they have also face a lot of threats while working in the Pakistan.

Non-supportive government

There have always been risks involved in the textile sector of Pakistan and so

Shalimar has to face the same threats. Changing Government policies and inflation in the

country is creating problems in the production of garment.

Shalimar has to put out itself from every crisis without any Government help. Even in

the power crisis the Government is not providing any favor to textile sector to run their

business. The company has to arrange private energy sources to keep themselves alive in the

near future which would cost them a lot.

Government Pol icies

The entry of strong competitors in international market like China and Taiwan, there

is a possibility that the Shalimar could lose its market share in if it not lowers its price. These

countries have stride at a rapid pace over a few years and many of the international contracts

are going from Pakistan to these two countries. They are offering far less price with huge

amount of creative designs due to which the buyer is somewhat attracted. Its a threat in the

long run.

Growing Competition

Due to globalization, there has become a price war between the local competitors

also. The textile industries are focusing more on succession planning to get success in future.

They are investing in the Research and Development sectors to cut down the costs and to

produce a high quality product.

Politi cal uncertainties

The political situation of the country is quite unstable this causes to lose the


26/50

confidence of the investors. Local as well as foreign

investor hesitates to invest in the country. Beside this political situation of the country,

changing in the government causes a lot of problems like

Late deliveries Higher lead time Instability of Political policies Changes in taxes and tariff

These few and many other political threats are faced by the textile industries all over

the country and getting affected of Shalimar is a natural phenomenon.

Free Trade AgreementsThere are a number of reservations about free trade agreement of textile companies

working in Pakistan. The cost of production of neighboring countries is much lesser than the

Pakistan and this create a hurdle for Pakistani entrepreneur to survive in international arena.

Departments of Shalimar

The departments which are of strategic importance for Shalimar Cotton Export (pvt) Ltd. are

Human Resource Department Merchandising & Marketing Department Finance Department MIS Department Export Department Production, Planning and Control Department

Quality Assurance department

All these departments are of strategic importance and work cross functionally, the

working of one department affect the working of the other department and in this way the

whole corporation work. On broadly basis the Shalimar has been divided on two grounds i.e.

services departments and production department. In services department, there are four

further departments that are services and compliance department, admin department, human

resource department, MIS department.


27/50

While in production department, there are further

lists of department which are usually there to support the production of the organization. In

production wing the important departments are merchandising department which is

responsible for selling of the production, production planning and control department which

is responsible for planning of the production and the raw material as well. Quality assurancedepartment is also there to ensure the quality of fabric. Purchase department is there to ensure

to provide the accessories for the production like fabric and stitching material etc. For

international client export department is there which ensures the international boarder

policies are being followed by the organization and the violation of these policies are not

being done. In this way, the whole corporation work. In my further discussion I will briefly

explain all of these departments.

Human Resource Department

Shalimar is one of the leading manufacturing units in Pakistan that has a large number

of employees. Keeping in view the present trend in the field of Management as well as the

requirement of the quality certification organization Shalimar separately developed its human

resource department which was working under admin department earlier. The Management

at Shalimar believes that it is very important for every organization to develop a world class

Human Resource department to harness the skills and knowledge of their people to achieveexcellence in product, procedures and quality systems.

The Human Resource Department at Shalimar has been formed at the end of 2006 to

accomplish international quality standards at every level. The department is providing

support to top level management in recruitment, selection, compensation as well as in the

field of Training and Development. The functions which Human Resource departments

currently perform at Shalimar Cotton Export (pvt) Ltd. are

Recruitment & Selection Compensation Management Training and Development Performance Appraisal

As the major time period I have passed in Shalimar was in human resource

department so /I have a lot of knowledge about this particular department of the company

and in this report will give you a more detail look of this department as compared to the other


28/50

departments. In broader view human resource

department has not most modern practices which support this department in order to get its

real objective. Management usually took this department as an expense and cost on the

organization. In order to cope with this expense department, a lot of other responsibilities

have also been allocated to this department which is actually not the responsibility of thisdepartment but the incumbents of HRD must be obeyed. For example a HR manager has

nothing to do with payroll but at Shalimar HRD and pay roll work cross functionally and

provide support to the pay roll department as to decrease the burden from the payroll

department.

Human Resource Department Philosophy

Shalimar Group has formed HR department in recent years so as to provide a soundand competitive human capital. They believe that their HR would provide a core competency

through training and development of new and untrained employees in a more efficient way.

Human Resource department of Shalimar Cotton Export (pvt) Ltd. has been developed to

deal with the intellectual capital, emotional capital as well as the social capital.

I ntellectual Capital

Intellectual capital means to develop the specialized knowledge and skills in the

employees by keeping in view the future needs of the organization.

Emotional Capital

Training the employees particularly at managerial level for developing the future

leadership in which the characteristics like self confidence, ambitious and courageous

workforce need to be develop.

Social Capi tal

HR department core philosophy is to develop such a workforce which has a long term

relationship with the organization. Shalimar believes on life time employment policy thats

why it awards benefit on the job as well as after the job i.e. retirement benefits.

HR Objectives

Following are the objectives of Shalimars Human Resource Department to accomplish

its goals and to achieve core competency.

Committed and Dedicated workforce


29/50

Training and Development Compliance with Labor Laws Record Bank for future Hiring

Functions of Human Resource Department

Human Resource department at Shalimar Cotton Export (pvt) Ltd. perform about all the

important functions regarding the human resource. Usually the best of the practices are being

used in the Shalimar regarding the Human Resource. The major functions which are being

performed in the Shalimar group are

Recruitment Selection Training and Development Performance appraisal Retaining and Rewarding

Merchandising & Marketing Department

Merchandising is a global process through which products are produced, sourced, and

sold all over the world. Merchandisers must have leadership for the value chain (developing,

distributing, and selling products) in a global market.

Merchandisers need to see "the whole process" from product innovation through

consumer satisfaction. This requires logical thought processes such as problem solving,

decision-making, and resource management. It is a critical need for merchandisers at

Shalimar, which has strong business background, yet it also stays focused on fashion or other

products that undergo continuous change in the consumer-driven market.

Objectives

Here, the merchandising department is mainly divided into accounts buyers. This

shows that there is individual or a team of merchandising, who takes care of a specific buyer

or account. Merchandising serves the following purposes at Shalimar:


30/50

Gateway

It acts as a bridge between buyer and the company for communication. The success or

failure of getting customer as well as successfully deliver the product depends upon

the Merchandising department.

Marketing

Merchandiser has to market his company in order to increase his customers and

generate more and more revenue. It is the single department who are actually

producing the revenue for the organization and rest of all the departments are used to

spend the money.

Costing

Merchandise makes a cost sheet to see if the product is feasible or not in terms of cost

and revenue. Merchandiser has to calculate the cost of products including all wastes

and accessories to tell the final cost of the product to his customers.

Negotiation

Merchandiser must have a negotiating power on the price to convince his buyers on

specific price to lessen the chances of loss.

Sampling

Merchandiser must send the sample to his buyers for confirmation and satisfaction. At

this stage, Sampling is also done to avoid loss.

I nformation Management

As merchandiser has direct contact with his buyers so the buyers have to give

information about their products requirements and if there is any problem the

merchandiser has to inform his buyers in return.

Implementation

It is the responsibility of merchandiser to prepare the product according to the

requirement of buyer.

Process of Merchandising

At Shalimar Cotton Export (pvt) Ltd, the merchandisers are responsible for carrying

out the merchandising activities, it is not a straight forward one step game rather it is a

complete process which started from initial inquiry of the customer and end at the delivery of


31/50

product.

I nitial Inquiry

An initial inquiry may be a simple fax describing briefly the target price and product

or it may be detailed package from a buyer describing in detail.

I ni tial Research & Development

Initial Research & Development or preliminary discussion is carried out with research

and development department to see if the company has the capability to produce the

product in terms of man and machines.

Costing

Merchandise makes a cost sheet to see if the product is feasible or not in terms of cost

and revenue. For this purpose a cost sheet is prepared, keeping in view the styling and

accessories to be used on the product.

Approval

After the cost sheet is prepared it is presented to the CEO or any other approving

authority for approval. The approval is mainly granted keeping the profit in view.

Merchandising process continues if a specific cost sheet is approved.

Order Booking Status (OBS)

Once an order is received it is mentioned in order booking status. OBS is extensively

necessary to maintain the track of records, capacity optimization, and planning further

through OBS strategic planning is also carried out. It helps in calculating cash in and

out follow. OBS is normally kept confidentially and it is only accessible to predefine

personal.

Sampling

It is the complete process through which sampling approvals are taken. It starts from a

proto sample and ends at shipment sample depending on the buyer as different buyer

have different sampling requirements. Samples may be paid or free depending on the

category, quantity, contract with the manufacturer.


32/50

I nformation Management & F orwarding

All information received from the buyer is forwarded to the relevant department in the

factory as to PPC package, checklist, accessories etc. information is provided which

in terms is processed by the PPC and is forwarded to the relevant departments to start

production.

Buyer & Country Dependence

It is always better to establish an optimum buyer that dependence on the buyer be

balanced so that just dependence on the buyer is also avoided and on the other hand

dependence on too many buyer is also not recommended.

Updating of OBS (Order Booking Status)

OBS could Management Information System lead document in case it is not properly

updated. Special checks need to be maintained for proper upgrading of the OBS ad if

data on the OBS is incorrect capacity and management could be seriously affected.

Quality Assurance Department

The purpose of quality assurance department is to provide the customers with quality,

satisfactory and reliable testing services. The strategy is built around plan, do, check and act

(PDCA), and is reflected in the Shalimars quality oriented system. To achieve high quality

standards, management is continuously investing in up gradation of skills, system and testing

equipment. It also believes in training and team work for successful implementation of high

quality standards. The slogan of the Shalimar is to buy quality, make quality & sell quality.

At Shalimar, quality is first priority for getting customers satisfaction. It is cornerstone of the

success today and tomorrow.

Quality Assurance

The proactive quality assurance system at Shalimar aims to get it right the first time

by rectifying any discrepancies during the course of the process. All the steps involved during

production are documented with continuous feedback into the production process allowing it

to develop further.


33/50

The main component of quality assurance department is specifications of end product

and its quality criteria Documented instructions and the methodology to be followed.

Performance analysis and recording system at every stage to minimize reliance on end-product testing.

Quality is a combination of Skills, System & Equipment so and continuously

investment in training our personnel, revising & improving our processes and systems and

upgrading our testing equipments. Quality checks are made at every stage of the

manufacturing process starting from raw fiber to delivery of final product.

Finance DepartmentFinance Department at Shalimar Cotton Export (pvt) Ltd. is an active body of the

organization having responsibility not only to provide the financial information about the

company but also facilitate the worker in financial services internally in the organization. It

works cross functionally in the organization with different departments. It also provides the

up to date information regarding the financial position as well as a complete review of

revenue and expenditures of the company. As Shalimar is a private entity, so providing

record of their financial assets is not obligatory on it.

Functions of the Department

o Maintenance of books of accounts and preparation of financial statements forthe company so that to be reviewed by the internal auditor of the company.

o Coordination and facilitation for Business planning and budgeting functionin the company and periodic reporting to the management and to the Board.

o Policy & operations related coordination with Management as well aswith the banks to ensure smooth working

o Maintenance of employees accounts/ investments and execution ofpayments and receipts.

o Maintenance of accounts relating to loans taken by the employees or bythe management on behalf of the company by the bank.


34/50

Research and development Department

Research and development or R&D department is related with product development.

It calibrates merchandising activities and forwards the fabrication information into the

product library and gets the exact match. If there is required match, Documentation and

Planning is done, March is developed and PD (product development) Plan is made by the PD

center. If there is no exact match, Technical evaluation (Pricing), Documentation and

Planning is carried out.

Objectives

It issues the work order, tells about the style, design, counts, gauges, fabricfinishing routes and fabric dyes.

It is responsible for to set standards for quality as well as for pricing byglobally visiting the market.

It is responsible for to develop the latest fashion trends as well as to developthe method for producing a quality product in a reasonable cost which the

customers can afford.

Quality Product Requisition (QPR) is made in Research anddevelopment department of Shalimar Cotton Export (pvt) Ltd. .

R&D department facilitates where an idea can be accurately converted in toproduct in quickest turnover rate.

Through its proper planning research and development department is responsible for

maintain as well as for Delivering of all types of samples with speed, accuracy, quality and

competitive pricing.

Management Information System

Shalimar Group has been the pacesetter in Pakistan by adopting scientific

management techniques in the Cotton Industry. For the purpose, an MIS department was

established quite early on and given the same freedom to innovate as any skunk works unit.

The MIS department has an in-house intellectual software development facility for

delivering a powerful stack of technology and comprehensive pre-integrated enterprise

business applications. These applications contain key functionality built specifically to


35/50

enhance top-level management's control over routine

operations and to support their decisions.

The following enterprise business applications have been integrated for better plant floor

to boardroom management:

Oracle E-Business Suite Group Level Financial Management System Human Resource / Payroll Management System (HRMS) Material Resource and Inventory Planning System (MRP) Integrated Manufacturing and Production Monitoring System (PMIS)

Production planning and control (PPC)

Production Planning and Control (PPC) is the nervous system of the organization and

its basic task is to receive information from the merchandising department and link it to the

production. It involves the Pre-Production Analysis to ensure quality and reproducibility.

Monitoring is done for the whole production process and in this we check out the planning

implementation. If the planning is failed, re-planning is done for that. Off- the- track and on-

the- track planning is also done by the PPC. PPC works in collaborates with R&D department

and also get the information from the cutting unit. In this Quality Plan specification, quality,

width, weight, dyes, gauges and counts are mentioned. PPC receive Fabric Consumption

Patterns from the Cutting department and plans that how much fabric must be used.

PPC has two further branches

1. Material Resource Planning2. Production Planning and Monitoring

1-Material resource planning

Material Resource Planning is done for the material procurement, like sundries, yarnand fabric. It is basically done to analyze that how much is needed, what is needed, when is

needed, what is the cost of the material and how to acquire the resources.

2-Production planning

It includes the planning like the Sewing Plan (we can also call it as the Master Plan).

Backward Production Planning is done and this Production Time Line involves whens and

whats of the production. Date Wise Plans are made from work order to delivery.


36/50

Documents generation in PPC

Store Plan

Store Plan can also be called as Accessories Plan. It involves all the documentation

about the sundries being used in the production of the order. It also involves the information

about Threads, Buttons, Sewing and Labels. Store Plan is basically a Quantity Plan.

Dyeing Plan

It is related with the Dyeing of the fabric that how much fabric is required for an

order, and then it is converted in to the Acro fabric. It plans for how much dyes and

chemicals are required. For the procurement of the materials, PPC goes for the purchase

department.

Extra Planning

3-5% extra planning is done for the losses. There are some visible losses and some

invisible losses. Visible losses occur from cutting to shipment. Invisible losses are being

made in Dyeing process and Finishing Process. Any extra planning requires extra cost. So for

the additional planning and additional cost, PPC managers have to go for the Chief

Executive.

The Production Planning and Control is the nervous system of our organization and

undoubtedly it is our key success factor. The nucleus of Shalimar and Sarahs remarkable

success has been its impeccable system. PPC conducts detailed pre-production analysis to

ensure quality and reproducibility.

Purchase Department

Every aspect of organization for the manufacturing of the product like sundries,

stationary, parts of machineries that can be available locally, chemicals and dyes etc. have to

be purchased locally from the local markets. These are usually the general items, involve

local purchase for the purchase of machines machinery that is not available in the local

market, import department involves in such purchases.

This whole import department is concerned with the high involvement machinery.

They whole purchase department is do not work the work order or purchase order. Things are

purchased according the buyer demand. No buying is done without the order. As such no

inventory level is maintained for such goods as these goods are utilized immediately and plan

is made for the minimum for the week. Three most important documents are used in the


37/50

purchase department.

Store Plan Store plan comes from the Store and purchase Requisition; It comes from

the warehouse. Buyer provides purchase Order and according to this the store department

make plan. It is made for one supplier only at one time only. Demand of the supplier ismentioned in the purchase order. These documents are used all over department.

Responsibilities of Purchase department

Purchase department is of primary importance in the organization, it fulfill and manage

the resources for the organization and ensure smooth functioning. It has the following

responsibilities.

Procure all goods and services required by the company.

Determine the most appropriate and effective method of acquisition for each requestfor purchase

Assure that best value in all procurements is obtained as authorized under Handbookof Operating Procedures.

Verify sufficiency of departmental funds for purchases Maintain a link with the Texas Building and Procurement Commission as needed on

procurement matters. Conduct all formal communications with vendors regarding purchases

Provide assistance on procurement matters to all departments.

Working of Purchase department

Manager from the entire departments can send request to procurement department by

using the MPR form, on the behalf of this MPR form purchase department is responsible for

the procurement. After a suitable purchase, the material has been allocated to the required

department.

There are two forms usually used for the purchase as well as the delivering of the

material in Shalimar Cotton Export (pvt) Ltd. . These are

MPR: Materi al Procurement Recogniti on

Every department issues this then the purchase department is responsible for

procurement. Verification is being done later on by an internal auditor of the company that


38/50

the material purchase was necessary or unnecessary.

MRP: Materi al Requirement and Planning

This document is used within factory for issuing the material. The quantity as well as

quality of the material is being checked by the manger of other department and a self audit isbeing done.

In this way, procurement department at Shalimar Cotton Export (pvt) Ltd. perform

the procurement activity, and the material purchase is being done systematically. In case

of violation of any rules written in manual can cause the charge of fraudulent activity.

Marketing Mix (4Ps)of Shalimar

Marketing mix is the term tends to define the four things on which the wholemarketing campaign of the company revolves around. The four necessary components of

marketing mix are product, price, promotion and placement.

Product

Though Shalimar is major exporters and its customers are business customer,

however the manufacturing product fall into the category of Consumer Products. Consumer

products are those products that are purchased for personal use. Shalimars Garments aredurabledue to their high quality fabric used for knitting and stiffness and tear strength in the

Good fabric.

In consumers products, these garments are included in Shopping Products. Shopping

products are purchased only after the buyer compares the various products and brands

available through different retailers before making a deliberate buying decision.

Similarly,Shalimar offers a reasonable price, good quality, various colors and styles

in their garments. And most of the advertisement is done through electronic media that

includes internet, mails and telemarketing.

Core Product

Core products are those products on which the business is actually based upon. In

core products which Shalimar offer is usually the finished product includes the Fabric, Home

Textile Products, Industrial Textile, Embroidery etc

Beside these finished products, Shalimar also offer fabric or Cotton to its customers, this may

include the fabric.


39/50

Augmented Product

Augmented products are those which are offered by a company to its customers by

developing some enhancement or some value addition. In case of Shalimar, the augmented

product which is being offered by the Shalimar is its apparel products includes equipment for

institutions like hospitals or fabric Pants and trousers.

Price

Pricing of a product matters a lot whenever we are going to sale a product, in this

highly competitive environment pricing matters a lot and the sale volume as well as the

success or failure of a product all depends on the pricing. Shalimar is practicing the Pricing

Strategies to attract the new buyers and to retain its major buyers.

The company adopted the Market Penetration Pricing Strategy in the introductory

stage of product life cycle for both the Fabric and the HOME Textile. International Pricing

Strategy has been adopted along with the other discounts to overcome the competition.

Following strategies have been adopted in the growth stage of Fabric.

Product Line Pricing Due to Different Product ranges as each

different design and material Cost.
http://www.shalimarcotton.com/Products/institutional-textile.htmlhttp://www.shalimarcotton.com/Products/embroidery.htmlhttp://www.shalimarcotton.com/Products/home-textile.htmlhttp://www.shalimarcotton.com/Products/fabric.htmlhttp://www.shalimarcotton.com/Products/institutional-textile.htmlhttp://www.shalimarcotton.com/Products/embroidery.htmlhttp://www.shalimarcotton.com/Products/home-textile.htmlhttp://www.shalimarcotton.com/Products/fabric.htmlhttp://www.shalimarcotton.com/Products/institutional-textile.htmlhttp://www.shalimarcotton.com/Products/embroidery.htmlhttp://www.shalimarcotton.com/Products/home-textile.htmlhttp://www.shalimarcotton.com/Products/fabric.htmlhttp://www.shalimarcotton.com/Products/institutional-textile.htmlhttp://www.shalimarcotton.com/Products/embroidery.htmlhttp://www.shalimarcotton.com/Products/home-textile.htmlhttp://www.shalimarcotton.com/Products/fabric.html


40/50

Product Bundle Pricing For the major buyers to retain them

Optional-Product Pricing For additional features

Discounts

The company also offers discounts if the payments of bills has been made earlier or in

other situation, volume purchase is in bulk. Broadly speaking company is currently offering

two types of discounts.

Early payment of Bills Volume Purchases

Cash Discoun t

2/10, net 30 If the buyer pays the Bill within 10 days then he would be given

a cash discount of 2 percent on each item.

This discount reduces bad debts and credits collections.

Quanti ty Discount

Shalimar offers 50 percent discount on each unit if the order exceeds 100 units.

Promotion

Company is using the push as well as the pull strategy in order to attract its target

customers. Usually internet is the major source of promoting its products beside this other

modern techniques are also widely used by the company in order to selling of its products.

Target Market

The target market of Shalimar is the Major international buyers or such brandnames that get their products from Asian countries and sell it to the European or other

western countries. To get connected with its target customer Shalimar is using the

massive media in order to promote its product.

Major Buyers

Shalimars buyers are very discerning and vigilant to the quality of the end product as


41/50

well as the services provided. Its association with these

globally recognized and renowned brand names speaks volumes of the product and services

they offer.

As Shalimar Cotton Export (pvt) Ltd. is offering a variety of products so the targets

buyer are also different depending on the market in which they are offering.

Placement

Shalimar has adopted the Vertical Marketing system, in which Shalimar, the

wholesalers and the retailers are acting as a unified system. Shalimar sells its Products to the

wholesalers of the Branded Companies. Later, these wholesalers sell the products to the

retailers in bulk quantity. Some wholesalers have contracted with the retailers and the others

are cooperating with each other.

Some time Physical distribution of product is required, for this purpose Shalimar has its

own delivery coaches and a proper system, with the help of these coaches in Lahore and

Karachi, local orders are being delivered by Shalimars own delivery system while national

and at international goods are being transported through mass transit system which can be

some truck, railway or by air cargo services. The process of delivering the goods follows

through in this way.

Purchase order is being received from the buyers through the merchandizingdepartment.

A fax message is sent to buying house/buyer for opening L/C.Expected Audit date/time is being received.

Arrangements are made for the transportation to move the consignment by theroad/train/air as per plan.

Funds are being arranged for the transportation and custom clearance. Shipment moves for the Karachi is being planned through the following ways. E.g.

Truck, Train, and Air. (Rates are as per shipment volume)

Forwarder / clearing agent make arrangements for the custom clearance and booking of

the space at earliest vessel. The requirement of the exports are being fulfilled by the agent,

the general requirement for the export of the fabrics include the invoice, packing list, export

form, valuation form, bill of entry and shipping bill. While going for to deliver the goods


42/50

proper arrangements are must so that, the goods can

easily be shipped to the customers. If in case the shipment process gets delayed or any other

problem occurs during the shipment, it will not only cause the financial losses but the

company good will also got ruined.


43/50


44/50

Recommendations & Suggestions

The company should launch its products for the home market with a specific name

which will give expansion to the company, loyalty of customer and future benefits as well.

Some of the important recommendations in my point of view are;

The company should update its DBMS for more accurate results The company should spread its business throughout the world and discover new

markets

The company should make new plants in those areas where labor is available at cheaprate in order to minimize its costs.

The company should also focus on local market The company should also motivate its employees by providing them non-cash

incentives in order to achieve desired results.

The company should also expand its business by launching its own brand in garmentproducts because it has the potential to do this.


45/50


46/50

was thinking that working in an organization is more

valuable and a piece of cake and my attitude was not so much professional or formal to work

in some organization but after this internship, I feel a very positive change in my attitude and

It make me mentally prepare to work in some good organization.

Corporate Cul ture

University culture is quite different than the corporate culture, in university students

usually take the thing just formality while in corporate sector you actually have to perform

other wise for you there will be no place in the organization.

Organization Structure

I have to face the organization structure which was highly bureaucratic in which there

is centralized decision making authority and you just have to obey the order no matter, right

or wrong beside this at the end incumbent is the only person who will be responsible for the

results so, you have to act according to the situation and have to remain attentive.

Professional Atti tude

Going out from the university in an organization is quite good experience as in the

university or college life, you are with your friends and remain informal while in organization

you have to be formal, there may be one or two of your friends but more of the other are your

colleague and the environment in organization is usually very competitive, you have to wear

a professional attitude otherwise it will be very hard for you to survive.

2- Knowledge Enhancement

This internship was very much beneficial for me, in one side it develop a professional

attitude in me while on the other hand it also enhance my knowledge and a lot of new things I

come to learn. There are few things which I wanted to mention here.

I SO Certif ication

As Shalimar Cotton Export (pvt) Ltd. is ISO 9001-2000 certified company, while

working here with this organization I got the opportunity to learn about the ISO certification

procedures and requirements to become an ISO certified company. I also got the opportunity

to interview the ISO officials which really enhance my knowledge about the quality

certification processes.


47/50

Limitations during Internship

As an internee in Shalimar exports, I have to face a number of difficulties which

create hurdles for my learning as an internee in this organization. Some of the constraints

which may limit my study are

Time Constraints

Due to short period of time, it was difficult to go for the in-depth analysis of each and

every department of Shalimar Cotton Export (pvt) Ltd.

Field of Study

As my field of specialization is Marketing, so my focus was on the Merchandising

department rather than all the departments of the organization but I have compensated this

issue by visiting these departments and getting the required information for my report.

Data Secrecy

Shalimar is a Private Limited Company, which does not allow sharing and

transferring its private data. Due to unavailability of Annual Report, the financial analysis

could not be carried out and the companys important documents could not be available. All

forms and documents are attached here are just specimen which are very close to the original

one but these are not original due to the data secrecy issue.

Communication Barriers

As there is autocratic culture of Shalimar Cotton Export (pvt) Ltd. and the

management here is very bossy and there is a communication gap exist between the

management and the rest of the employees, this communication gap also create hindrance for

me to getting the data from top management.


48/50

The Effect of Internship on my Future

Career

Flexibility in work environment matters a lot; I have learnt it while I was doing my

internship in Shalimar Cotton Export (pvt) Ltd. The office environment is always remainintensive and the individual have to manage it accordingly in the office, in case of failure he

will be no more at the job; this is in the ethics of the work environment and all these ethics

become more exhaustive when you are in the human resource department and have to deal

with all type of employees. You have to prove yourself a calm and pleasant personality.

As I was not the responsible person for that office and in actual was acting as an

observer or a learner. So, I learn that behavior by observing the people in the Merchandising

department that what type of personalities you have to face daily and you have to manage it

accordingly. Might be if without this internship I go somewhere in the market, I may commit

thousand of such mistakes and employees get curse on me but after observing all that the job

of Merchandise manager is very sensitive and a certain image of Market has been cultivated

in my mind, now whenever I will go to some market I can perform well and I am cent

percent sure that without this internship I cantdo that effectively as I can do after that.

This internship proves better for me in two way, on one side it help to develop a

personality in me which exactly match the person of Merchandising department and secondly

it help to strengthen my decision about the specialization in Marketing as my personality

exactly match the nature of job.


49/50

References

www.shalimarcotton.com

Mr. Waqas Ijaz (Director Shalimar Cotton Exports pvt Ltd)

Mr. Abdul Qaddoos (IT Manager Shalimar)

Mr.Bilal Ahmad (Marketing Manager Shalimar)

Mr. Husnain Habib (Supervisor Manufacturing Shalimar)

Mr. M. Usman (Exports Manager Shalimar)

Employees and Other Staff members of Shalimar Cotton Exports pvt Ltd


50/50