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Internship Report

Nayyer Carpets Industries


G.T ROAD GUJRAT
Semester: 4th (G)
Date of final report: 23/08/2013

ii

Dedication

I want to dedicate my work to my honorable parents and respectable


teachers, whose prayers and efforts make me able to do this task.

Acknowledgment
All the praise is for Allah, the most merciful and beneficent, who blessed me
with the knowledge, gave me the courage and allowed me to accomplish this
difficult task.
I am much thankful to the Allah who gives me patience and power to complete
my internship and he gave me opportunity to learn much through my University.
I am heartedly thankful to my all teachers for giving me enough knowledge to be
able to carry myself efficiently during my internship. I would like to be thankful to
our Course instructor who helped me to complete this project. I am also much
thankful for my respectable Sir Sajid Mehmood as well because, he provided me
opportunity to have such nice experience.
My period of internship in this organization was about six weeks and it was a very
good experience. I would like to thanks Mr. Sayed Imran Ali (General Manager of
Nayyer Carpet Industries) Gujrat, who helped me a lot in internship and I gained
much more than otherwise I would.
I am also especially thankful to Miss. Iram and Mr. Ali (Office Assistant and
Inventory Operator) for her valuable guidance through out the Internship period.

iii

Executive Summery
Nayyer Industries (Pvt) Ltd needs no introduction in Pakistan because of its
famous brands in carpet and non-Woven. There are two production setups of
Nayyer group, one is situated in Lahore while other in Gujrat. Our focus is on
Gujrat factory only. The Gujrat factory is producing the famous brands in Carpet
and non-Woven, these may include carpets in cut pile, loop pile, high pile,
straight, cross over, single sliding needle bar, double sliding needle bar & jute
shifter.
The departments which I have visited for my internship are main departments of
this setup. This report covers their structure, working, functions, strategies and
connection with other departments for the completion of their day to day
activities. The Nayyer group is involved in some other kinds of business but our
focus remains to carpets as it may exceed our scope otherwise. The organization
holds good name into local market but it is also emerging in the Gulf market.
Their Slogan is seen on different documents as The possibilities are endless.
They have captured the most of the countries some of them may include Nepal,
Afghanistan, Dubai and Sharjah. It is to be note that they are exporting the
Carpets with the name of their clients.
The current database in use is known their as WIZMAN, which is good software
for coordination of different activities through out the organization.

iv

PREFACE
In BBA program under University Of Gujrat require six weeks internship in any
recognized organization. The objective is to provide the students an opportunity
to gain experience to work in the environment of that organization.
For this regard, when I had to choose an organization, I visited some companies.
The reason to choose a Company is that, I have a wish to do job in Company.
Among so many companies, I choose Nayyer Industries Limited G.T. Road
Gujrat branch.
The wonderful building, fully equipped, and have 300 employees. Here I learned
a lot, and gain experience to work in the manufacturing environment. I worked
there in IT Department and Production department.
My internship report consists on introduction of Nayyer Industries Ltd. and its IT
System's team.
The success of this effort of course goes to all staff members of the Company
who cooperate with me fully, share insights, and convey me the knowledge
regarding their work. Thanks to all.

Table of Contents
1. Overview of the organization:.........................................................................2
v

a. Brief history:....................................................................................................4
b. Nature of the organization:..............................................................................5
c. Business volume:............................................................................................5
d. Product Lines:.................................................................................................5
1. Brand Portfolio:............................................................................................6
2. Strategies of Branding:................................................................................6
3. Main Clients.................................................................................................6
e. Competitors:....................................................................................................7
f. Brief introduction of the branch where I did internship....................................8
2. Organizational Structure:.................................................................................9
a. Organizational hierarchy chart:.....................................................................10
b. Number of employees:..................................................................................10
c. Main offices:...................................................................................................11
d. Introduction of all departments:.....................................................................11
Marketing Department:..................................................................................11
Production Planning and Development Department:....................................11
Model Room:.................................................................................................12
Costing:..........................................................................................................12
Purchase department:...................................................................................12
Receiving Room:...........................................................................................13
Raw Material Store:.......................................................................................13
Production Department:.................................................................................13
Finished Goods Godown:..............................................................................14
Claim and Return Goods:..............................................................................14
Security:.........................................................................................................15
Quality Assurance and Control Department:.................................................15
Human Resource Department:......................................................................15
Accounts:.......................................................................................................15
IT Department:...............................................................................................16
Engineering and Maintenance Department:..................................................16
Laboratory:.....................................................................................................16
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Drawing Office:..............................................................................................16
Sales Department:.........................................................................................16
e. Organizational Management Analysis:.........................................................17
1. TRAINING PROGRAM:...................................................................................17
a- Plan of Internship program:..........................................................................17
b. Description of the task assigned to me:........................................................19
c. Description of the project assigned to me:....................................................19
2. A. Structure of the MIS/IT department:.........................................................19
a. Department Hierarchy:..................................................................................20
b. Number of employee:....................................................................................20
c- Major Responsibilities & Functions of IT/MIS Department:..........................20
d- Support to other Departments:.....................................................................22
2. B. Structure of Tufted Department:...............................................................23
a. Department Hierarchy:..................................................................................23
b. Number of employee:....................................................................................24
c. Major responsibilities and functions:.............................................................24
2. B. Structure of Cromojet department:..........................................................24
a. Department Hierarchy:..................................................................................25
b. Number of employee:....................................................................................25
c. Major responsibilities and functions:.............................................................25
2. B. Structure of back coating department:....................................................25
a. Department Hierarchy:..................................................................................26
b. Number of employee:....................................................................................26
c. Major responsibilities and functions:.............................................................26
2. C. Feasibility report of computerizing the functions..................................26
a. Hardware and software requirements:..........................................................27
b. System design:..............................................................................................27
c. Implementation or execution of the system:.................................................27
d. Evaluation process:.......................................................................................27
1. Critical analysis:.............................................................................................28

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a. Comparison and evaluation of current strategies with mission and vision


statement...........................................................................................................28
b. Comparison of theoretical concepts with the current practices in various
departments......................................................................................................29
2. SWOT Analysis:..............................................................................................30
a. Strengths:......................................................................................................30
b. Weaknesses:.................................................................................................32
c. Opportunities:................................................................................................33
d. Threats:.........................................................................................................34
3. Internal factor evaluation matrix:..................................................................35
4. External factor evaluation matrix:.................................................................37
5. Threats opportunities weaknesses Strengths matrix (TOWS):.................38
6. Competitive profile matrix (CPM):.................................................................41
7. BCG Growth-Share Matrix.............................................................................43
8. Porter five forces analysis:............................................................................45
9. Ansoff Growth Matrix:....................................................................................47
a. Market penetration:.......................................................................................48
b. Market development:.....................................................................................48
c. Product development:...................................................................................48
d. Diversification:...............................................................................................49
1. Conclusion:.....................................................................................................49
2. Recommendations:........................................................................................50
1. Reference & Sources used............................................................................52
2. Annexes...........................................................................................................53

viii

PART ONE
1. Overview of the organization:

The Nayyer industry limited manufacturing entity. It is manufacturing carpets and


non-woven. It is producing carpets of many
kinds and non-woven as a raw material for
different products.
The nature of products of Nayyer is consumer
durables and interiors. It is a private limited
company.
Starting Year:

1974

Founders & Chairman:

Ch. Nayyer Hussain

C.E.O:

Ch. Mubashar Hussain

Managing Director:
General Manager:
Factory General Manager:
Daily Production:

Ch. Azhar Hussain


Ch. Muhammad Aslam
Syed Imran Ali Shah
10 to 15 Roles

Logo:

Management of the company:


Contacts: Lahore Head Office
21-N, Gulberg-|| Lahore-Pakistan.
Tel: 92-42-5716437-8-9, 5716806-7-8
Fax: 92-42-5716436 - 5716809
Email: nayyer@nayyergroup.com

Board of Directors:
Mr. Ch. Nayyer Hussain

(Chairman)

Mr. Ch. Mubashar Hussain

(Chief Executive)

Mr. Ch. Azhar Hussain

(Managing Director)

Mrs. Naila Mubashar

(Board Member)

Mr. Ch. Bilal

(Board Member)

Mr. Ch. Usman

(Board Member)

Factory Management:

Mr. Ch. Azhar Hussain

(Resident Director)

Mr. Syed Imran Ali Shah

(General Manager)

Mr. Naveed Afzal Sultan


Mr. Mian Ashfaq
Mr. Sayed Habib-ur-Rehman

(Asst. Factory Manager)


(Technical Manager)
(Manager Accounts)

Mr. Ch. Aslam

(Cost Manager)

Mr. Ch. Bilal

(System Manager)

Mr. Mukhtar Ahmad Butt

(Purchase Manager)

a. Brief history:
Mr. Ch. Nayyer Hussain is considered to be the founder of Nayyer industry. It
started its operations in 1974 at Gujrat. Established in 1974 and in the last 38
years it has become the leading manufacturer of following products in Pakistan
and Dubai.

After that they took the orders for making the carpets on large scale and this
contract gave them a new passion to become a well known organization in
Pakistan.
Within the years of its establishment it started nourishing at a remarkable pace
and started meeting the order of different companies.
Once the setup started increasing it was decided to open its retail outlet and
wholesale depots through out the country. Now the company has more then 300
retail outlets, more than 1500 dealers and 10 wholesale depots all over the
country.
The company had opened its own whole sale and retail shops all over the
country, enlacing the consumers to buy carpets at fixed prices which were a new
trend at that time. This was much appreciated by the consumers. The company
then took another step and entered into the export market realizing that the
country was in dine head of foreign exchange. The exports were made on
international standard and right time delivery became the basis and the Hallmark
of Nayyer and the same trend continues.

b. Nature of the organization:


The Nayyer industry is producing the Carpets and non-woven mainly and
meeting the demands of not only local market but also international markets.
Nayyer Industry is manufacturing concern and producing the consumer durables
products. It is private limited company being listed on Lahore stock exchange
and it includes in the large scale organizations of Pakistan.

c. Business volume:
The Nayyer group is earning 0.5 million US$ annually. There is a contribution in
this revenue is from the Nayyer factory Gujrat.
Business Volume (in terms of millions US $):
Years

2007

2008

2009

2010

2011

Fixed Assets

0.667212

0.344230

0.617721 0.182321

0.823165

Advances

0.981560

0.921354

0.339300 0.512280

0.299680

Stores & Tools

0.626990

0.602432

0.612912 0.988913

0.442322

Debtors

0.996620

0.891881

0.266221 0.638197

0.618774

Cash & Bank

0.286294

0.561316

0.213661 0.344270

0.214530

Investment

0.316798

0.413121

0.312164 0.372122

0.169931

Earning after Tax

0.878200

0.916977

0.221694

0.529132

0.311691

Grand Total

d. Product Lines:
The Nayyer Gujrat is running the following products:

PP and nylon BFC Yarn

Dyed Polyester Fiber

Synthetic needle punch carpets.

Tufted Carpets Woolen & Synthetics

Printed Carpets

Axminster Woven Carpets

Wilton Woven Carpets

Bonded Carpets

Non-Woven Carpets

Technical Felts

Geo-Textiles

Upholstery and Curtain Fabrics

1. Brand Portfolio:
The brand portfolio of the Nayyer Industry Limited Gujrat is
as:
Nayyer Industries Limited (Gujrat & Lahore Factory) dealing mainly with carpets
and non-woven products.

Application of Non-woven Products:


4

The automobile industry is using non-woven materials world wide in different


items such as for car seats, carpets, under lays, door panels head liners and
acoustic insulation. It is also being used on aircraft, trains and boats. It is light
easy to mould, cut and shape, flame resistant and impregnable to many
contaminants, they can be tailor make for every application, offering cost and
weight saving advantages.
Non-Woven have an extremely wide range of characteristics abrasion - resistant
highly absorbent chemically cleanable, chemically wrinkle resistant fealty velvety
filtering fire proof flame proof, water proof, weather proof, environmentally
compatible materials.

2. Strategies of Branding:
The Nayyer is using range brand strategy of its carpet products.
The carpets are used for all kinds of furnishing and interior floor covering. PP,
nylon BFC Yarn and Dyed Polyester Fiber is used for all the Carpets as a raw
material. Primary and secondary is used for the basic layer to make different
kinds of loop.
Technical Felts is used for the back coating. The Cart pipe is sued for the making
roles, while stopper is used for to convert a role into finished goods.

3. Main Clients:
The main customer of the Nayyer Gujrat is Nayyer Display. The Nayyer Display
purchases from the factory and sells in the market at its own. To sell in the
market the Nayyer Display has retail shops through out the country. It also sells
to the stockiest; who sell different companies brands under one roof. Nayyer
Display also sells to the government institutes and firms outside the country.
Nayyer customers are classified under two heads:
a) Local
b) Export

a) LOCAL:
The local customers are as follows:

City Carpet

Choice Centre

Bilal Curtain

Modern Home Gujrat

Ansari Carpet

Riaz Carpet LHR

Al-Masaud Carpet

Hamza carpet

b) EXPORT:
Export clients are:

Qaseem and Raees Khan (Afghanistan)

Al-Mustafa Furnisher (Sharjah)

(Nepal)

e. Competitors:
Nayyer is largest carpet industry working in the country. It has captured most of
the market in Pakistan and it is working to go abroad with its local brands. It has
numbers of the brands which are well recognized in the country. There is no
other company which has such a reorganization of its brands. The only main
competitor of the Nayyer is Venus Carpets and Olympia carpets but inspire of the
fact they are not such reorganization as the Nayyer have. So, it can be said that
Nayyer has monopoly in quality carpet.
However we can include the following in our list:

Venus Carpets (Karachi)

Olympia Carpets (LHR)

Banday Carpets (LHR)

Maqbool Carpet Industries (LHR)

7 Star Rugs (Karachi)

A & M Compilers (LHR)

Abdul Majeed weaving factory (Gujranwala)

Ahmed Oriental Carpets (LHR)

Ahsan Carpets (LHR)

f. Brief introduction of the branch where I did internship


Nayyer Industry was established in 1974 by Mr. Nayyer Hussain .It is located in
Gujrat on G.T road Industrial area. About 300 people are related to this industry.
Initially it was just a small carpet industry but with the passage of time it shows
progress and becomes one of best industries of Pakistan. Key to success of this
industry is quality products .In every department there is no compromise on
quality.
Now Nayyer industry in Gujrat has a great worth and reputation in Pakistan as
well on international level among the best carpet weaving industries.
The resident director of Nayyer Industries Gujrat is Mr. Azhar Hussain. Mr. Syed
Imran Ali Shah is holding the post of General Manager. Factories own up to date
and highly automated machines, which are mostly imported. There is a
laboratory equipped with highly sensitive and modern technology along with
highly qualified staff.
The carpet factory is ISO 9002(A family of standards and guidelines for quality in
the manufacturing and service industries from the International Organization for
Standardization) certified factory, manufacturing quality and famous brand.
There is a main office having different sporting departments like accounts, IT,
costing and purchase along with the offices of resident director and general
managers. The monthly production of the carpet factory is about 450 roles.

Technologies:
The group has made great strides in developing products through improving
production, enhancing quality and consumer oriented approach. This has made
the group one of the biggest industrial group in these products, in the region

Polyester/PP Fiber Plant.

Geo-textile product plant

Nylon & PP BCF Yarn Plant

Wilton Carpet Plant

Tufted Carpet Plant

PP BCF Yarn Plant

Yarns
Nylon and PP BCF yarn plant
Solid Color or Tri Color
Dtex 900 to 2700
Air entangled Up to 10,000 suitable for Weaving, Tufting and Knitting.

Fibers
FIBER EXTRUSION
Dyed Polyester fiber Plant
3 Den to 30 Den
Suitable for Non-Woven and Spinning Industry

Geo Textiles
Two raw polymer materials most commonly used are polypropylene and
polyethylene can also be used when low temperature flexibility or stability
against chemical (leakage) attacks is required. Polyester has superior
tenacity and creep characteristics and is therefore preferred in some
critical reinforcement applications.

2. Organizational Structure:
There are two structure of organization that is hierarchal and flat structure. The
Nayyer industry limited Gujrat has hierarchal structure. It has large number of
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departments, each has good force and jobs are allocated to each department
and independent and separately, headed by separate department head. There
are very few cases at Nayyer Industry Gujrat where two or more departments are
being headed by a single person.
There is a long chain of command, each chain member having one or more subordinates there are large number of level like resident director, general manager,
managers, Assistant managers, staff/supervisor/foreman, and workers. A very
short spans of control each member having.

a. Organizational hierarchy chart:


The highest authority at Nayyer Industry Gujrat is Resident Director which is
being followed by General Manger.
The Hierarchy chart of Nayyer Gujrat is as:
Resident
Director

General/ Production
Manger

Manager
Accounts

Manager
Costing

Manager
Purchase

Manager
Inventory

Technical
Manager

Assistant
Manager

Assistant
Manager

Assistant
Manager

Assistant
Manager

Assistant
Manager

Assistant
Manager

Assistant
Accounts

Assistant
Costing

Foreman /
Supervisor

Assistant
Purchase

Assistant
Inventory

Assistant
Technical

Workers

b. Number of employees:
The Nayyer was started with very little number of employees but now it is
counted among large organizations of Pakistan. Nayyer is operating two carpet
factories, head office in Lahore. The total number of employees with this carpet is
more than 1200 out of which 400 are working in Gujrat factory and about 400 at
Lahore factory and reaming at head office and branch office.

c. Main offices:
It also has branch office at Karachi. The main of the branch office Karachi is to
deal their
Imports and export via sea.
Lahore Head Office
21-N, Gulberg-|| Lahore-Pakistan.
Tel: 92-42-5716437-8-9, 5716806-7-8
Fax: 92-42-5716436 - 5716809
Email: nayyer@nayyergroup.com
Dubai Office
Plot NO MOD 2-9
P.Box: 61060 Jabel Ali
Free Zone - Dubai - U.A.E.
Tel :00971-4-8817572-8 Lines
Fax: 00971-4-8817579

d. Introduction of all departments:


It has number of departments being headed by departments head, which is
mostly a manager. The Nayyer Gujrat does not have its HR, sales and product
development department at Gujrat. These departments work at head office.
These departments work in coordination so that output of the one department

10

makes the input of the other and hence this process goes on until the completion
of the process in unified way.
The functions of these departments are as follows, however these department
work beyond this it is just their basis functions or working:

Marketing Department:
To generate the demand through different tools and to analyze the market trends
and pass all the information to the related departments for the manufacturing of
the final product according to the market demand is the responsibility of the
Marketing department.

Production Planning and Development Department:


Production planning and development is responsible to coordinate the activities
of sample development section that is model room and mainly to allocate the
activities to the production roles. It receives the demand form the marketing
department in term of number of particular roles of carpets with particular size in
particular time. It then works to check the feasibility of the orders received from
marketing department. It also check the availability of materials required for
production. After all these process they develop the production plan and allocate
the activities to the production units according to the capacity of unit.

Model Room:
To develop the sample of the carpet is the responsibility of the model room. The
customer asks for the sample of its order before bulk supply. It then develops the
sample according to the specification given by the customer for his approval. In
case he needs some modification he then sends back the sample and asks for
that modification. Model room then redevelops the sample according to his
instructions. If the sample is approved it develop the pattern of the materials used
in the sample and sends to the production planning department for the bulk
production.

11

Costing:
To allocate the materials and their quantities to be required for the bulk
production and the cost of each carpet role is the responsibility of the costing
department. This department receives the number of the roles to be
manufactured from the planning department and the material that are required in
the production from model room which is called specification. Form these figures
they come up with the nature and quantity of the materials required for bulk
production.
Then they raise material estimate sheet which includes the material required it
quantity and date when it is required. This estimate is handed over to the
purchase department to purchase that material form the market.

Purchase department:
This department is furthered divided in two sections first is local purchase and
other is foreign purchase.
This department receives estimate sheets from costing department and work on
it. If the items are regular which are being purchased already it simply raise
purchase order to the already settled vendor at settled rate. If there is new thing
to be purchased, it asks the costing department to provide sample along with
demand. Purchase department sends this sample to the relevant supplier and
asks them to quote prices. Then they negotiate with the suitable supplier on
settlement of the price and other term they raise purchase order to that supplier.

Receiving Room:
All the materials or other things which comes in the factory go to receiving room
first. All the vendors unload their material at receiving room except bulk material
which is unloaded at their relevant stores.
The receiving rooms inspect the material to make insure that the material is
according to documents enclosed which is called delivery challan. It only ensure
the quantity but not quality.

12

Raw Material Store:


The stores are divided according to the material they store. There are numbers of
stores which include chemical store, technical store, primary store, packing store,
synthetic fiber, yarn store and secondary store.
The store receives the materials from the receiving room after it is passed. The
store counts the materials and if found correct he generates the receiving report
which assures that the material is taken on charge as stock in hand.
The store is also responsible to issue the materials to the production unit against
indent.

Production Department:
The largest and the far most important department in any factory is always is
production department. This department is divided according to their functions
and they are in alien in such a way that output of the one is the input of the other.
Following are the sub production departments:
1. Tufted Department
2. Cromojet Department
3. Back coating Department
The first step in the production process is to issue yarn and primary from the
stores, the issued material is sent to machinery controllers and main production
unit where it is weaved by different kinds of machineries and convert to raw
carpet. After making raw carpet, this carpet goes to printing department where
different colors and designs are printed on the carpet as according to the
requirement. Back coating department receives this soft carpet from production
unit and covers the carpet from back with secondary and some other chemicals,
which prevents the carpet's looped yarn from wear and tear. This back coating
material is manufacture inside the factory and also procure from outside. These
are then sent to the over locking department. After the over locking the carpet is
prepared.

13

Here the inspection is started and after the inspection the carpets are sent to the
packing section where they are packed in the polythene sheets in role shape and
then finally they are sent to the relevant god-owns for dispatch to the depots.
The factory is lead by the factory manger, who is as well the production manager.
The production manger is further assisted by the assistants. There are numbers
of foremen and supervisors with a large number of machines and workers who
are caring daily production activities.

Finished Goods Godown:


The carpets which are manufactured in the production unit are sent to the
finished goods godown, where they are stored until they are dispatched to its
destination. Before dispatching they are segregated

according

to the

requirements of the depots and the retail outlet. There are four stores for the
finished goods which are retail store, wholesale, export go down and export left
over godown.

Claim and Return Goods:


The carpets which are returned by the retailers and the customer being faulty are
kept by the claim and return goods department. Returned goods may include
carpets packed of the wrong size, design which was not required. While, claims
goods include items which become defective within the guarantee period during
its use by the customer. This department receives these carpets and makes
report of its defects and sends to the relevant persons to check whether the claim
is justified or unjustified. If the claim is justified means that the customer is right
to claim the defective is replaced with the new one and the measured are taken
to rectify the error in future. If is not justified no replacement is made.

Security:
The security department is responsible to keep the law and order inside the
factory.

14

This department is being run by the professional security guards in a much


arranged manners. The security staff is appointed at gates and other important
places inside the factory. There are also Hidden security cameras fixed in
different locations of the factory, which cover all the activities and views inside the
factory and these are monitored by the authorities in their offices.

Quality Assurance and Control Department:


Quality assurance department is responsible to maintain the quality of not only
raw material but finished goods also up to mark.
This department is divided in to two section one section is responsible to check
the quality of the incoming raw material and the other is responsible to check the
quality of the carpets in process and at final stage. The section who is at
checking the acuity of incoming material receives the sample of incoming
material along with the approval slip from the receiving room.

Human Resource Department:


The Nayyer Gujrat does not have its HR department at Gujrat, but it is working in
main head office Lahore. The human resource department is basically
responsible for all the matters relating hiring and firing of employees. Here at
Nayyer Lahore HR department is headed by executive with one assistant, this
section handles all the matters relating staff, which includes managers and non
managers other than workers. The HR department is responsible to provide the
man power to the all other departments. This department also holds all the
record of the employees which is presented when needed to general manger and
other related authorities. It is also responsible to conduct the tests and interviews
of the employees for hiring.

Accounts:
One manger along with the assistant manger is leading the accounts department.
This department is dealing with salaries issues. This department performs the
activities, which includes wages and salaries, provident fund, budgets, bill

15

verification, payments to suppliers, accounts management, pensions, loans and


different expenditures.

IT Department:
IT department is responsible to manage all the activities relating to computer
systems and database. This department works as the system support
department for all the other departments so that they can perform their activities
in a better way.
They generate different reports in database on the requests of employees from
different departments. This department holds the strength of nine employees
which includes three programmers, three assistants and two hardware
supervisors and one manger.

Engineering and Maintenance Department:


This department is responsible to maintain all factory asset running smoothly if
undertakes preplan maintenance of all the machinery after the specified period.
There are number of mechanical and electronic engineer they keep the entire
physical infrastructure of the entity in good condition.

Laboratory:
There is a huge laboratory at Nayyer Gujrat being headed by the chief technical
manager and there are number of qualified technician are sporting him. The
laboratory inspects the incoming material which required lab test that chemical
and recording to their specification.
They also undertake any other test recommended by the quality department to
check the material they also instigate the material during the process of
production to know any effect of process on the carpet during manufacturing.

16

Drawing Office:
Drawing office or department is responsible for the design of the carpet required
or demanded by the client. It checks the feasibilities and possibilities of any of the
design, which can be drawn on carpets.
This department also suggests the material and machinery for the design
required.

Sales Department:
As a sale department is situated at Nayyer Display so this reports includes only
those findings which were collected from different employees at Gujrat factory.
The sales department is headed by the country sales manager, who is answer
able to the chief operating officer.

e. Organizational Management Analysis:


The

Organizational

Management

Analysis

is

an essential

element

of

organizational development. An OMA report presents a compilation of the


information obtained from the individual Checkpoint results of a group of
managers. The report provides a factual summary of the perceptions of a
management group with input from the manager's bosses, peers and direct
reports.
In Nayyer there, highest authority is the Chairman of the company. Under whose
chairmanship there is wide span of control. Chief Executive Officer and
Managing Director is also considerable authorities are over there. At Nayyer
industries Gujrat the Resident Director and after him the General Manager are
responsible for all the operations conducting there.
OMA reports guide to future development based on statistically accurate data.
Here human capital has a vital importance with physical capital. The manager,
bosses, groups and peers are working together with the best co-ordination and
cooperation. Manager performs their duties by planning, organizing and
controlling. They are not only passing their orders to employees but they also
have a strong understanding with them. The groups of workers are working
17

together is also a good mutual intention. These kind of work environment have a
consequence to decrease in conflict and increase in work efficiency. Managers
have a view to divide some of the authorities to subordinates to make them
confident and to get good results.

PART TWO
1. TRAINING PROGRAM:
a- Plan of Internship program:
Plan of internship program is given below in tabular form:
Sr. No.
1

Starting Date
3/9/2012

Ending Date

Name of

Duration

12/10/2012

Department
Tufted

(In days)
49

STARING & ENDING DATES OF INTERNSHIP


Starting date: 03-09-2012
Ending date: 12-10-2012
Duration: The tenure is about 6 weeks

Department where I worked:


Internship was my first step in practical life, through which I learnt a lot and it has
aided me in being well equipped with valuable experience that would help me
once I enter the professional life after the completion of my studies.
During the period of 3 September to 12 October 2012, I worked in Nayyer Carpet
Industry as an internee.
My association with this company was being a part of the MIS Department. It was
a great experience for me and it helped me in realizing where my potential lies.
What I learnt at Nayyer over the weeks was how to get along with the people that
I have to work with everyday, building confidence and improving my skills. This
internship has also prepared me for my future career in MIS so this internship
has helped me a great deal.

18

The experience has taught me responsibility, teamwork and how to handle


problems occurring. Even though the nature of work was quite basic as an
internee, nevertheless I got to see what practical life is.
This internship overall has been a great experience. This report gives a profile
of Nayyer Carpet Industry and an insight into the IT department where I was
assigned to work.
This report also reflects my learning and experiences at Nayyer along with
my responsibilities and the tasks that I performed. Last part of the report consists
of some recommendations and suggestions that I have given.

b. Description of the task assigned to me:


I was appointed as an internee at in Nayyer Carpet Industry of Gujrat .Besides
working on 4 department of the company, manager also assigned an important
task to work
I have to record all the material transactions occurred among their different
departments on the Financial Database system.
Besides it, to improve the skills of learning database system Inventory manager
assigned me to open the new codes of their new brands and design. There are
already more than thirty thousands designs of different categories of carpets are
prevailing in their Database system. But it was assigned to me to open some new
codes and some sub brand's code.

c. Description of the project assigned to me:


Inventory and IT Manager under whose kind jurisdiction, I completed my
internship at Nayyer Carpet Industry Gujrat, assigned me a task to develop a
local area network in their department and sub offices. There are four computer
systems in a single room but in different cabins. First of all he assigned me to
develop a LAN and after that I was assigned to develop a Wide area network.
So first I create a local area network with the help of my respected Guide and Sir
Naveed Sultan, and then a wide area network among all computer systems in a

19

single building. It includes the system from reception up to the computer system
in resident director's office.
It was my first experience to develop such kind of networking; I was not expert or
have not done any practice so he helps me a lot to complete this project.

2. A. Structure of the MIS/IT department:


Short for Management Information System and pronounced as separate letters,
MIS refers broadly to a computer-based system that provides managers with the
tools for organizing, evaluating and efficiently running their departments. In order
to provide past, present and prediction information, an MIS can include software
that helps in decision making, data resources such as databases, the hardware
resources of a system, decision support systems, people management and
project management applications, and any computerized processes that enable
the department to run efficiently.
Within companies and large organizations, the department responsible for
computer systems is sometimes called the MIS department. Other names for
MIS include IS (Information Services) and IT (Information Technology).

a. Department Hierarchy:
The IT department is situated at head office Lahore and works under the direct
super vision of chief operating officer followed by IT manager with the team of
one assistant manager, three executives' officers and three officers. The
hierarchy chart of IT department at Nayyer Industry Gujrat is as follows:

20

IT
Manager

Programme
rs

Programme
rs

Programme
rs

Assistant

Assistant

Assistant

Hardware
supervisors

Hardware
supervisors

b. Number of employee:
The IT department has nine employees, responsible for different duties assigned
to them which include three programmers, three assistants and two hardware
supervisors and one manger named as Mr. Naveed Afzal Sultan.

c- Major Responsibilities & Functions of IT/MIS Department:


The Management Information System department serves as an internal reporting
unit of the organization. MIS enables consistent and reliable flow of information
about all the programs even from the remote areas on monthly basis. This
facilitates flexibility and adjustment of any deviation from the planned activities.
The department is responsible to report in quantitative as well as qualitative
terms and has an extensive database of the existing organizational activities.
MIS department at Nayyer Carpet Industry Gujrat performs various tasks which
includes the following:

Generation of incentive sheets

Preparation of monthly/ Quarterly statistical report

Managing accounts on database

Conduct different surveys and monitoring different ongoing projects

21

Development of monitoring tools and designing the formats and procedure


for operational monitoring

To facilitate the regular field visits meetings in order to reflect on project


activities and gather opinion on future development for positive feedback
to management

Planning and Coordinating for conducting specific studies when needed.

Evaluation report at the end of the project

Deal in all related IT works i.e. Networking, Web designing, Trouble


shooting etc.

Direct the operations of computer and related equipment, including


telecommunications and data networks

Develop transitional plans for acquisitions and installation of equipment

Assist program/ department directors in the selection and setup of MIS


equipment and applications

Keep

abreast

of

new

developments

and

trends

and

make

recommendations to management on desirable additions or replacements

Advise managers concerning IT trends, technical problems, need for


equipment, need for software upgrades and priorities

Manages interface throughout the Nayyer Industry with the Internet

Responsible for IT equipment, network system and telecommunication


activities within the Nayyer Industry Gujrat

Provide educational opportunities for Town employees

Evaluate new technologies for possible implementation

Maintain the inter department's Internet presence

Provide efficient and reliable operation of all departments' hardware and


software

Centralize purchasing of computer hardware and software for all


departments

22

About the Department


The Information Technology Department provides a variety of services relating to
computer and telecommunications services, application software development,
design and production services, and software training to all internal departments.
These services encompass personal computers, networks, printers, servers, and
more. The IT Department is an innovator in the field of information technology
management, using a combination of management solutions that maximize
effectiveness and minimize cost. The IT Department also consults with other
departments to analyze and select proper IT solutions for specific applications,
provides internet access, computer training and support, and mobile computing
solutions for other departments.

Development:
Provides design, development, implementation services and continued support of
special data, and databases

Web Development:
The IT Department designs, develops, implements and maintains the Nayyer's
Key website.
Information technology changes rapidly and new systems and technology are
continually being implemented and installed. The IT Department strives to
translate this technology into higher productivity for departments, and higher
quality output for reduced costs of operations.

d- Support to other Departments:


MIS stands for Management Information System, the system that provides
information to the management about a given project or program. IT department
is responsible to manage all the activities relating to computer systems and
database. This department works as the system support department for all the
other departments so that they can perform their activities in a better way.

23

They generate different reports in database on the requests of employees from


different departments.
System and Network Support

Development and maintenance of the departments' communication


infrastructure and wide area network

Maintain file and application servers and network security management,


software distribution, and technical support for hardware and software.

2. B. Structure of Tufted Department:


Nayyer Group is the largest manufacturer of tufted carpets in
Pakistan & Dubai (UAE). It has the widest range of
machinery to manufacture most of the products liked by the
customers worldwide The group is manufacturing carpets in
cut pile, loop pile, high pile, straight, cross over, single sliding
needle bar, double sliding needle bar & jute shifter in the following gauges.
GAUGE:
Cut pile cross over =1/10th, 1/8th, /5/32
Graphic Loop Pile Straight =1/10th, 1/8th/5/32
Cut pile cross over =1/10th, 5/32nd/, 1/8th
Scroll Cut Pile 100/ = 5/31

24

a. Department Hierarchy:

Manager

Foreman

Assistant
Day

Technician

Assistant
Night

Worker

Technician

Worker

b. Number of employee:
In tufted department 15 employees working here. This department is directly
under the control and management of general manager. Mr. M Akhtar is the
incharge of this department as a foreman, under his there are two assistants with
two technicians and five workers. These assistants do their job in different
timings but both have to answer Mr. M Akhtar.

c. Major responsibilities and functions:


Major responsibility of the department is to produce raw carpet in time, besides it
is also the responsible for the material taken from the store for production
process and after completing its task it have to return the remaining material to
25

the store. Tufted department include 6 machines for the different design of the
carpet. And it is also responsible to complete its function on time because output
of this department is the input for cromojet and printing.

2. B. Structure of Cromojet department:


The evolution of technology, a revolution

inn

expression
What inspire you? Color? Texture? Art? Architecture?
Whatever you can imaging.
Cromojet imaging technology makes possible.
By every measure, Cromojet provides the most highly evolved carpet pattern
capability available, allowing quick production of both
custom and standard patterns.
Custom designs do the best job of expressing a
unique image. And with cromojet imaging, creating a
custom

design

is

simple

cromojet

design

professionals can guide you through an un complicated process in which you'll


work with a state-of-the-art Cromojet design computer system to create and
visualize your design

a. Department Hierarchy:
Manager

Assistant

Technician

Assistant

Worker

Technician

Worker

26

b. Number of employee:
In cromojet department 19 employees are working here. Mr. M Mushtaq is the
manager of this department as a foreman, under his there are two assistants with
two technicians and seven workers. This department does their task with the
coordination of Laboratory workers and expertise.

c. Major responsibilities and functions:


Tufted department make raw carpet by using yarn, fiber and primary as a base.
After making raw carpet tufted department send this output to cromojet
department which process on it to convert it into final carpet. Cromojet
department is responsible to make the carpet designed and printed. It is the main
responsibility of the department to design the carpet as according to the demand.
Expertise from the laboratory is consistently with coordination of this department
because of the color mixing and designs.

2. B. Structure of back coating department:


Nayyer group is manufacturing different kinds of carpets. Back coating
department prevents the carpet's Fibers and Yarns, by using the traditional soft
felts, secondary and cotton flannels.

27

a. Department Hierarchy:
Foreman

Assistant
Day

Chemist

Worker

b. Number of employee:
In back coating department 13 employees are working here. Mr. M Shehzad is
the incharge of this department as a foreman, under his there is one assistant
with one chemist and ten workers.

c. Major responsibilities and functions:


Back coating department receives this soft carpet from tufted and cromojet
production unit and covers the carpet from back with secondary, felt and some
other chemicals, which prevents the carpet's looped yarn from wear and tear.
This back coating material is manufacture inside the factory and also procure
from outside. These are then sent to the over locking department. After the over
locking the carpet is prepared.

2. C. Feasibility report of computerizing the functions


I worked in IT department and sub departments of the production department.
During my internship I came to know the different steps and procedure methods
28

of production. Besides IT department I just go through the production process,


here I am giving a report which covers the feasibility to convert the system on the
computerized base.

Feasibility Report for a Computerized System


Purpose
The purpose of the new system that Nayyer Industry should develop is to
improve on the existing paper system. The original system is time consuming
and is inadequate for the production process. As details have to be regularly
updated and altered, the new system will be computerized. The system will allow
its user to:

Add new Inventory to the system

Keep the inventory issue records

Printout hard copy of all kind of documents

Keep a record of all the transactions preformed.

a. Hardware and software requirements:


To continue the production process in a very mannered and symmetric way, we
can use the computer base technology.
Hardware Requirements of the system is not much as it needs maximum of 256
MB of ram with around 1GB of free disk space, having a 32 bit Processor.

b. System design:
The design of the system must not be complex, so that further editing in it can be
easily done. The software must be flexible for other technical development.

Software Requirements
For the development of the proposed system we need visual basic 6.0 or
VB.NET and MS Access or Oracle for development and database. Visual basic is
easy to use and oracle gives high flexibility and security to the database.

29

c. Implementation or execution of the system:


Implementation and execution of the hardware and software required for the
computerization of the production system depends upon the way of working on
this.
In production process we can implement the computerized system through
automated machinery which starts working just by giving instruction from the
system designed for this purpose.

d. Evaluation process:
The purpose of the feasibility is to examine how the original system compares
with the new one. This report will also help to conclude whether it is necessary to
computerize or improve the present system.

PART THREE
1. Critical analysis:
a. Comparison and evaluation of current strategies with mission
and vision statement.
Our vision statement is our inspiration, the framework for all your strategic
planning.
The vision statement answers the question, Where do we want to go?
Whereas, a mission statement is a brief description of a company's fundamental
purpose. A mission statement answers the question, "Why do we exist?"

Our Vision:
To ensure the future of the company and the employees through customer
satisfaction by producing quality carpets, providing a reliable, durable and
affordable carpet for interiors and operating the organization safely, efficiently,
and profitably through continuous improvement.

Mission Statement:

30

Our mission is to provide high product quality. Understanding our customers


requirements and delivering it continuously. Encourage innovation/creativity to
expand and continually improve utilizing quality practices for the production
carpet industry, both in the domestic and international markets.

Current Strategies:
Strategy is the field that deals with the major intended and emergent initiatives
taken by general managers on behalf of owners, involving utilization of
resources, to enhance the performance of company in their external
environments. It entails specifying the organization's mission, vision and
objectives, developing policies and plans, often in terms of projects and
programs, which are designed to achieve these objectives, and then allocating
resources to implement the policies and plans, projects and programs. A
balanced scorecard is often used to evaluate the overall performance of the
business and its progress towards objectives.
Nayyer Gujrat is committing its mission and vision in the sense of quality. No
doubt there is no compromise in Carpet's quality. Nayyer Gujrat is doing
successful efforts to gain its objectives, to continue its mission and to broad its
vision.
They are committing their clear view regarding quality product. They are
providing durable, reliable and affordable quality product as according to the
demand of their customers. They are satisfying the customers by fulfilling their
desired design, color, size and quality. On time product delivery is a plus point for
Nayyer in local as well in international market. Nayyer is industry doing their best
to utilize the sources in a best way to accomplish their goals.
According to their strategy regarding design is also very consistent. As their
mission is "To encourage the innovation" So I found them to following strictly this
point. They are doing new experiences to broad the concept of carpet's design.
There is a point in vision statement, "To ensure the future of the company & the
employees through customer's satisfaction" But I found that company is doing
very well and countless efforts to ensure the company's future but unfortunately

31

there is an absence of HR Department in Gujrat Nayyer industry, who value and


protect the employees rights who are working on low level.

b. Comparison of theoretical concepts with the current


practices in various departments.
Theoretical concepts are those concepts which we studied in the books during
our studies. We listen and understand these concepts for improving our
knowledge and mental skills. We learn these concepts from our teachers,
professors and instructors in the educational institutes. We discuss the matters
and problems with our class mates and other students to resolve them. And at
the end, we practice all these concepts in practical field, during internship, job or
business.
Sometimes theoretical concepts can not implement exactly in all kind of
organizations because of different nature, structure, design and methods. It also
depends on organization's size and business volume.
During my internship, I observed so many theories implemented as according to
the book reference like hierarchy structure, work division, organizing, planning,
leading, controlling, costing, accounting producing and storing. In planning all the
strategies and long term projects are designed by the higher management,
operational or middle managers are responsible to conduct the plans and lower
level management have to complete the assigned task.
Besides it all other departments are performing their functions very well due to
qualified and skilled staff. We have studied the concepts just by words, but in real
life I experienced "The dreams come true" how the book references and
theoretical concepts are being really met to the current business conditions. In
MIS department I observed the project manager performing their tasks in very
efficient manners.
In production department there is a large amount of work, factory machines didn't
stop even after a weak. They work 24 hours properly while during production
process.

32

As we studied different procedure of production process and costing, delivering,


storing, issuance and so many other issues of a manufacturing concern. I found
Nayyer very close to that theoretical concept. Each and every calculation,
operation and different strategies are very close to facts and accuracy. Costing
department use so many formulas and spread sheets to calculate sensitive
amounts, store acquires and issue material as according to the rules mentioned.
Production department do its job success fully. Although there is always a need
to improve, and to flourish the business in a better way, but the Nayyer Carpet
Industry Gujrat is conducting the best policies and strategies to accomplish the
production task assigned by the head office.
Some of the departments are lacked by the most important facilities like there is
no HR department in Nayyer Gujrat which is the biggest weakness of this factory
and other departments like MIS/IT have very low facilitation to do their job on
computerized manners.

2. SWOT Analysis:
SWOT analysis is a strategic planning method used to
evaluate the Strengths, Weaknesses, Opportunities,
and Threats involved in a project or in a business
venture. It involves specifying the objective of the
business venture or project and identifying the internal
and external factors that are favorable and unfavorable
to achieve that objective. The technique is credited to
Albert Humphrey. In order to take the in depth view of Nayyer Industry we
must do a SWOT Analysis.

a. Strengths:
Nayyer carpet Industry is well known and established manufacturing entity in the
Pakistan recognized by its quality products with a large variety of design and
colors. By reviewing their strengths, I analyze their "Product" as the biggest

33

power they have with "Leading Brands" on a "Large Scale of Production"


controlled by "Strong Management", "Expertise", "Qualified Staff".
Nayyer as a "Customer based" organization has a "Strong Market Position"
with a number of "Sales Channels" not only in Pakistan but also on international
level.
Nayyer

is

"Fasting

Growing"

organization

with

"Sound

Financial

Resources", "Technological Skills" and a key factor known as "Customer's


Loyalty".

b. Weaknesses:
Weaknesses are those internal elements which cause to a deficiency in all kinds
of operations including production, planning, organizing, working and running of a
business.
All the organizations must have the weakness with the internal strength of the
organization, sometimes it happens that a factor which is considered to be
strength may also falls in the category of a weakness. Like wise in Nayyer, I
found its "financial resources", "staff" and "market position" as a weakness
with the entity of strength. Because there is always a possibility to decrease in
financial resources which may results in inconsistent market position. Nayyer
have not arranged "training programs for the employees" to create an
awareness about the latest trends, business rules, current policies so it is also an
internal weakness of the Nayyer to "loose the key staff", who have a strong hold
or grip on the organization in all departments. Besides it there is also some weak
points like "lack of new products" which can cause other weaknesses such as
"low customer retention" or "customer dissatisfaction".
c. Opportunities:
The term opportunity is usually used to have a chance to get a benefit for the
organization from external environment. Opportunities bring the positive change
which are the most beneficial and valued for the firm.

34

Nayyer also have the external opportunities to avail for their betterment and fast
growth. They have the opportunity to "expand" their business by availing the
"funds" from the different financial institutes, by "acquiring" the other firms and
by having the "vendors" who are willing to invest their capital. The greatest
opportunity for the firm is to "sale" out its own product through "new distribution
channels" with "low personal taxes". As it is stronger and established name in
the production of carpets, it is also an external opportunity for the business that
it's "competitors have low power to compete".

d. Threats:
External threats make a firm weak in decision making process. It is most risky to
make decision in uncertain and threatening environment. Threats are most
harmful for business even sometimes firms came to shut down conditions due to
these threats.
Nayyer carpet industry is also facing so many external threats. In Pakistan it is
much harder to establish a strong business entity in such a "fluctuating
economy".
Inconsistent economy makes the market so risky for investment so it is also a
hard task to avail "external source of finance".
"Negative cash flow" is also a threat for the business which results in low
amount of liquid assets. "New technologies" with day to day changes are not
easy to acquire and implement. As today the world is so fast and more
competitive so the threat of "more competition" is also faced by the Nayyer and
this completion can make the volume of sales lower and "low sales volume"
means "low profit".
Political instability results in new "governmental regulations and policies" in
trade are also threatening. It can also provide a possibility to "close a
geographic market". The most biggest and recent threat is "power supply". A
manufacturing firm which has a number of machinery and plants can be badly
affected by this threat.

35

3. Internal factor evaluation matrix:


Internal Factor Evaluation (IFE) matrix is a strategic management tool for
auditing or evaluating major strengths and weaknesses in functional areas of a
business.
IFE matrix also provides a basis for identifying and evaluating relationships
among those areas. The Internal Factor Evaluation matrix or short IFE matrix is
used in strategy formulation. The IFE Matrix together with the EFE matrix is a
strategy-formulation tool that can be utilized to evaluate how a company is
performing in regards to identified internal strengths and weaknesses of a
company. The IFE matrix method conceptually relates to the Balanced Scorecard
method in some aspects.
IFE Matrix of Nayyer Carpet Industry Gujrat:
Internal Strength
Weight
Rating
Weighted Score
1. Staff
3%
3
0.09
2. Customer base
2%
3
0.06
3.Market Position
7%
3
0.21
4.Financial Resources
5%
3
0.15
5. Sales Channels
4%
3
0.12
6. Product
6%
4
0.24
7. Growing
5%
3
0.15
8. Expertise
7%
4
0.28
9. Technological Skills
5%
4
0.2
10. Leading Brands
8%
4
0.32
11.Customer Loyalty
2%
3
0.06
12. Production Scale
4%
4
0.16
13. Management
8%
4
0.32
Internal Weaknesses
1. Staff
2%
1
0.02
2. Financial Resources
5%
1
0.05
3. Market Position
2%
2
0.04
4. Lack of new product
7%
2
0.14
5. Customer Dissatisfaction
4%
2
0.08
6. Low customer Retention
3%
1
0.03
7. Dependence on central server
5%
2
0.1
8. Training of Staff
6%
2
0.12
Major Weakness (1), Minor Weakness (2), Minor Strength (3), Major Strength (4)
Total Weighted Score
100%
2.94

36

Weights are Industry based, and Ratings are Company based.


In IFE Matrix average score is 2.5, so if total weighted scores will below average
point then it will show the company is weak internally. But here weighted points
are more than average point so it is showing that company is internally strong.
*Note:
When a key internal factor is both strength and a weakness, then it must
include twice in the IFE Matrix. The same factor is treated as two independent
factors in this case. It has to assign weight and also rating to both factors.

4. External factor evaluation matrix:


External Factor Evaluation (EFE) matrix method is a strategic-management tool
often used for assessment of current business conditions. The EFE matrix is a
good tool to visualize and prioritize the opportunities and threats that a business
is facing.
The EFE matrix is very similar to the IFE matrix. The major difference between
the EFE matrix and the IFE matrix is the type of factors that are included in the
model. While the IFE matrix deals with internal factors, the EFE matrix is
concerned solely with external factors. External factors assessed in the EFE
matrix are the ones that are subjected to the will of social, economic, political,
legal, and other external forces.
External factors are extracted after deep analysis of external environment.
Obviously there are some good and some bad for the company in the external
environment. Thats the reason external factors are divided into two categories
opportunities and threats.

EFE Matrix of Nayyer Carpet Industry Gujrat:


External Opportunities
1. Strategic Alliances
2. Funding
3. Sales Product
4. Acquisition
5. Lower Personal Taxes

Weight
3%
5%
6%
4%
6%

Rating
3
4
4
3
4

Weighted Score
0.09
0.2
0.24
0.12
0.24
37

6. New Distribution Channels


3%
3
0.09
7. Market Poised for Growth
2%
3
0.06
8. Competition Weaknesses
7%
4
0.28
9. Vendors
3%
4
0.12
10. Expansion
6%
4
0.24
External Threats
1. Economy
6%
2
0.12
2. Lose of key staff
2%
1
0.02
3. Lack of financial resources
3%
2
0.06
4. Cash Flow
3%
2
0.06
5. New Technology
4%
2
0.08
6. Increased Competition
4%
1
0.04
7. New Government Regulation
5%
1
0.05
8. Decreasing Profit
2%
2
0.04
9. Failing sales
2%
2
0.04
10. Closing of Geographic Market
4%
2
0.08
11. Tax Increases
9%
1
0.09
12. Power supply
11%
1
0.11
Major Threats (1), Minor Threats (2), Minor Opportunities (3), Major Opportunities (4)
Total Weighted Score
100%
2.47
Weights are Industry based, and Ratings are Company based.
In EFE Matrix average score is 2.5, so if total weighted scores will below average
point then it will show the company has external threats. But here weighted
points are more than average point so it is showing that company has external
opportunities more than threats.

5. Threats opportunities weaknesses Strengths matrix (TOWS):


SWOT analysis, method, or model is a way to analyze competitive position of the
company. SWOT analysis uses so-called SWOT matrix to assess both internal
and external aspects of doing business. The SWOT framework is a tool for
auditing an organization and its environment.
The concept of determining strengths, weaknesses, threats, and opportunities is
the fundamental idea behind the SWOT model. To present the model in a more
understandable way, scholars came up with so-called SWOT matrix. SWOT
matrix is only a graphical representation of the SWOT framework.
38

What is the difference between SWOT and TOWS?


TOWS analysis is very similar to the SWOT method. TOWS are simply looks at
the negative factors first in order to turn them into positive factors.
TOWS Analysis is a variant of the classic business tool, SWOT Analysis. TOWS
and SWOT are acronyms for different arrangements of the words Strengths,
Weaknesses, Opportunities and Threats.
By analyzing the external environment (threats and opportunities), and internal
environment (weaknesses and strengths), we can use these techniques to think
about the strategy of our whole organization, a department or a team. We can
also use them to think about a process, a marketing campaign, or even our own
skills and experience.
We look at how we can extend our use of SWOT and TOWS to think in detail
about the strategic options open to us. While this approach can be used just as
well with SWOT as TOWS, its most often associated with TOWS.

Identifying Strategic Options:


SWOT or TOWS analysis helps us to get a better understanding of the strategic
choices that we face. (Remembering this "strategy" is the art of determining how
we'll "win" in business and life.) It helps us ask, and answer, the following
questions: How do we:
Make the most of our strengths?
Circumvent our weaknesses?
Capitalize on our opportunities?
Manage our threats?

TOWS Matrix of Nayyer Carpet Industry Gujrat:


39

External Opportunities

External Threats

1. Expansion

1. Power supply

2. Vendors

2. Tax Increases

3. Competition

3. Closing of Geographic

Weaknesses

Market

4. Market Poised for

4. Decreasing Profit

Growth

5. Failing sales

5. New Distribution

6. New Government

Channels

Regulation

6. Lower Personal Taxes

7. Increased

7. Acquisition

Competition

8. Sales Product

8. New Technology

9. Funding

9. Cash Flow

10. Strategic Alliances

10. Lack of financial


resources
11. Lose of key staff
12. Economy

Internal Strengths

SO: Strategies that use

ST: Strategies that use

1. Staff

strengths to maximize

strengths to minimize

2. Customer base

opportunities.

threats.

3. Market Position

1. Through Financial

1. Financial Sources and

4. Financial Sources

Resources company can

Technological skills are

5. Sales Channels

expand itself. (S4,O1)

helpful to avoid Power

6. Product

2. New distribution

supply and Cash Flow

7. Growing

channels and acquisition

threats. (S4,S9,T1,T9)

8. Expertise with

help the company to

2. Through Sales

Authentication

grow. (S7,O5,O7)

Channels it is possible to

9. Technological skills

3. Production Scale and

stop the Closing of

10. Leading Brands

Leading Brand make the

Geographic Market.

11. Customer Loyalty

competition tougher.

(S5,T3)

40

12. Production Scale

(S12,S10,O3)

3. Long run Production

13. Management

4. Product is strength

Scale can stop

which surely its sales.

Decrease in Profit.

(S6,O8)

(S12,T4)

5. Strong Market position

4. Strong Market

attracts the vendors for

Position can eliminate

investment and help to

Lack of financial

fund rising. (S3,O2,O9)

resources. (S3,T10)
5. Expertise with
Authentication and Good
Management can stop
Losing of key staff.
(S8,S13,T11)
6. Quality Product can
make Competition
tough. (S6,T7)

Internal Weaknesses

WO: Strategies that

WT: Strategies that

1. Staff

minimize weaknesses by

minimize weaknesses

2. Financial Resources

taking advantage of

and avoid threats.

3. Market Position

opportunities.

1. Market Position can

4. Lack of new Product

1. Funding can increase

reduce the threat of

5. Low customer

the Financial Resources.

unstable Economy

Retention

(W2,O9)

(W3,T12)

6. Customer

2. Through Expansion of

2. Training of staff will be

Dissatisfaction with

the business weakness of

helpful to avoid Lose of

Design

Lacking of new Product

key staff. (W8,T11)

7. Dependence on central

can be eliminate.

Server

(W4,O1)

8. Training of staff

3. Market Position is
helpful to avail Market

41

Poised for Growth.


(W3,O4)
4. To Sale the Product on
a large scale can be
cause to decrease the
weakness of Low
customer Retention.
(W5,O8)

6. Competitive profile matrix (CPM):


Competitive profile matrix is an essential strategic management tool to
compare the firm with the major players of the industry. Competitive profile matrix
shows the clear picture to the firm about their strong points and weak points
relative to their competitors. The CPM score is measured on basis of critical
success factors, each factor is measured in same scale mean the weight remain
same for every firm only rating varies. The best thing about CPM that it includes
our firm and also facilitates to add other competitors make easier the
comparative analysis.
IFE matrix only internal factors are evaluated and in EFE matrix external factors
are evaluated but CPM include both internal and external factors to evaluate
overall position of the firm with respective to their major competitors.
The competitive profile matrix consists of following attributes mentioned below.

Critical Success Factors:


Critical success factors are extracted after deep analysis of external and internal
environment of the firm. Obviously there are some good and some bad for the
company in the external environment and internal environment. The higher rating
show that firm strategy is doing well to support this critical success factors and
lower rating means firm strategy is lacking to support the factor.

42

Rating in CPM represents the response of firm toward the critical success
factors. Highest the rating better the response of the firm towards the critical
success factor, rating range from 1.0 to 4.0 and can be applied to any factor.

There are some important points related to rating in CPM.


Rating is applied to each factor.
The response is poor represented by 1.0
The response is average is represented by 2.0
The response is above average represented by 3.0
The response is superior represented by 4.0

Competitive Profile Matrix of Nayyer Carpet Industry Gujrat:


Critical
Success

Nayyer Carpets Venus Carpet


Weigh Ratin Weight Ratin Weight

Olympia Carpet
Ratin Weight

ts

ed

ed

ed

Advertising

3%

Scores
0.09

Scores
0.09

Scores
0.06

Product Quality

15%

0.60

0.45

0.45

Price

8%

0.16

0.16

0.16

Competitivenes

10%

0.30

0.20

0.20

15%

0.60

0.45

0.45

Management

10%

0.30

0.20

0.20

Financial

18%

0.54

0.36

0.36

Position

15%

0.45

0.45

0.30

Customer

6%

0.12

0.12

0.12

Loyalty
Total

100%

Factor

3.16

2.48

2.30

43

7. BCG Growth-Share Matrix


The BCG Growth-Share Matrix is a portfolio planning
model developed by Bruce Henderson of the Boston
Consulting Group in the early 1970's. It is based on the
observation that a company's business units can be
classified into four categories based on combinations of
market growth and market share relative to the largest
competitor, hence the name "growth-share". Market
growth serves as a proxy for industry attractiveness, and relative market share
serves as a proxy for competitive advantage. The growth-share matrix thus maps
the business unit positions within these two important determinants of
profitability.

Since, year 2012 has been closed and all financial data have
been consolidated.
Following is the information about the 4 Divisions and I categorize and identify
each Division into BCG Matrix
Division

Revenues

%Reven

Profits

% Profits

ue

Market

Growth

Share

Rate

Rs.
1

300000

70

39000

60

0.80

12.3

10000

23

16400

25

0.65

9.6

2110

7600

12

0.27

-6.2

890

160

0.11

-17.5

Total
BCG Matrix of Nayyer Carpet Industry Gujrat:

Relative Market Share Position

44

45

(Percentage)

INDUSTRY SALES GROWYH RATE

High

Medium

Low

Growth rate is -17.5 and relative market share is 0.11


SBU # 4: SBU No.4 is running in total loss as per statistics give because the
market share and growth rate percentage is very low. The management should
sell the SBU to prevent more losses because it has no generation and neither
there is a possibility that it will generate in future. So it is better to sell it out.
Growth rate is - 6.2 and relative market share is 0.27
SBU # 3: SBU No.3 has some better market share and growth rate than SBU 4.
So it can be kept under through observation if there is some betterment, more
investment can be made there to gain more generation and revenue. But more
investment should be made according to the situation analysis.
Growth rate is 9.6 and relative market share is 0.65
SBU # 2: The SBU is generating most of the revenue and the position should
remain maintained for the efficient and smooth running of the business. It has

46

almost monopoly in the market so; there is no threat of competition. There are
more chances of betterment and higher profit.
Growth rate is 12.3 and relative market share is 0.8
SBU # 1: The SBU has acquired the highest market share and growth rate but to
maintain the position is a difficult task because there is a lot of competition. So
the company should remain no stone unturned to maintain the position as it is in
the best interest of the business.

8. Porter five forces analysis:


The Porter's 5 Forces tool is a simple but powerful tool for understanding where
power lies in a business situation. This is useful, because it helps us understand
both the strength of our current competitive position, and the strength of a
position we're considering moving into.
The five forces that Porter suggests drive competition are:
1) Supplier Power: Here we assess how easy it is for suppliers to drive
up prices. This is driven by the number of suppliers of each key input, the
uniqueness of their product or Nayyer, their strength and control over us,
the cost of switching from one to another, and so on. The fewer the
supplier choices we have, and the more we need suppliers' help, the more
powerful our suppliers are.
2) Buyer Power: Here we ask ourselves how easy it is for buyers to drive
prices down. Again, this is driven by the number of buyers, the importance
of each individual buyer to our business, the cost to them of switching
from our products and Nayyer to those of someone else, and so on. If we
deal with few, powerful buyers, then they are often able to dictate terms to
us.
3) Competitive Rivalry: What is important here is the number and
capability of our competitors. If we have many competitors, and they offer
equally attractive products and Nayyer, then we'll most likely have little

47

power in the situation, because suppliers and buyers will go elsewhere if


they don't get a good deal from us. On the other hand, if no-one else can
do what we do, then we can often have tremendous strength.
4) Threat of Substitution: This is affected by the ability of our customers
to find a different way of doing what we do for example, if we supply a
unique software product that automates an important process, people may
substitute by doing the process manually or by outsourcing it. If
substitution is easy and substitution is viable, then this weakens our
power.
5) Threat of New Entry: Power is also affected by the ability of people to
enter our market. If it costs little in time or money to enter our market and
compete effectively, if there are few economies of scale in place, or if we
have little protection for our key technologies, then new competitors can
quickly enter our market and weaken our position. If we have strong and
durable barriers to entry, then we can preserve a favorable position and
take fair advantage of it.

Porter's Five Forces Analysis of Nayyer Carpet Industry Gujrat:

48

9. Ansoff Growth Matrix:


The Ansoff Growth matrix is a tool that helps
businesses decides their product and market growth
strategy.

Ansoff

product/market

growth

matrix

suggests that a business attempts to grow depend


on whether it markets new or existing products in
new or existing markets.
Successful businesspeople spend a lot of time
thinking about how they can increase profits. Theyll
typically have hundreds of ideas about things they
could do, including developing new products, opening up new markets and new
channels, and launching new marketing campaigns.
However, you expose yourself to a whole new level of risk by either moving into a
new market with an existing product, or developing a new product for an existing
market. The new market may turn out to have radically different needs and

49

dynamics than you thought, and the new product may just not be commercially
successful.
And by moving two quadrants and targeting a new market with a new product,
you increase your risk to yet another level.

a. Market penetration:
Market penetration is the name given to a growth strategy where the business
focuses on selling existing products into existing markets.
Market penetration seeks to achieve four main objectives:
1) Maintain or increase the market share of current products
2) Secure dominance of growth markets
3) Restructure a mature market by driving out competitors
4) Increase usage by existing customers

b. Market development:
Market development is the name given to a growth strategy where the business
seeks to sell its existing products into new markets.
There are many possible ways of approaching this strategy, including:
1) New geographical markets
2) New product dimensions or packaging
3) New distribution channels
4) Different pricing policies to attract different customers or create new
market segments.

c. Product development:
Product development is the name given to a growth strategy where a business
aims to introduce new products into existing markets. This strategy may require
the development of new competencies and requires the business to develop
modified products which can appeal to existing markets.

50

d. Diversification:
Diversification is the name given to the growth strategy where a business
markets new products in new markets.
Ansoff Growth Matrix of Nayyer Carpet Industry Gujrat:
Existing

Existing Product
Market Penetration: 4300000

New Product
Product Development:

Market

Carpet

2400000

4600000

Non-woven

1900000

Carpet

2400000

New

Non-woven
Market Development: 3800000 Diversification:

2200000

Market

Carpet

2100000

3100000

Non-woven

1700000

Carpet

1900000

Non-woven

1200000

Note:
This matrix has the estimated values of two products in the scenario of Existing
market and Existing Product, with the different combinations which are:

Market Penetration

Product Development

Market Development

Diversification

PART FOUR

51

1. Conclusion:
In the light of organizational analysis, during my internship I concluded the
organization doing their best. They are following their mission, vision statement,
objectives and goals. They are not only making the profit and securing the future
of the company but they are also participating in the foreign earnings.
They are providing best quality product and with good reputation in the market
the can compete their competitors. The quality should not be compromised at
any cost and payment system to the vendor should be as per agreed means
there must be no delay in the payment to the vendors. They have long term
future plans. The manager of Nayyer is very hardworking, they are not only
making their present secure but also doing efforts to bright up their future. Nayyer
have strong chain of command on all over the firm's operations coordination of all
departments results in splendid products. Working of all departments is
appreciable on individual levels. Groups and peers make their work easier by
creating a healthy environment. The higher management is quit satisfied with this
but there is always need to improve. Some of the workers on lower level are not
much qualified but they are skilled and attached with Nayyer from years. They
know the tools and techniques of their work; they are like expertise in their
relevant fields. It was also observed that distribution of work load was no proper.
Some employees are not satisfied and they found complains regarding the
access of work while some are very relaxing and saying they have not much to
do. I conclude that Nayyer have no proper HR department for their employees in
Gujrat factory and also didn't arrange any of the training program for new
appointed staff as well for the old ones to refresh the knowledge and their skills
but it requires reengineering of their structure
Nayyer have a large scale of production which fulfills the demand of their
customers at the right time and proper delivery which generate the Good will for
the company. They are providing employment to a number of people.

52

In respect of MIS department, I found that there is much limited number of


persons doing work over there, who have no wide knowledge about information
system. MIS provides the IT services to all the departments.
It is very appreciable for the management team of the branch that they gave their
precious time to me and teach me in best possible way. It is difficult to do both
works at the same time, to do their routine work, and to guide me. But they all did
it very well.
2. Recommendations:
Nayyer Industries Limited has an historical importance in the carpets, and nonwoven market. The branch where I did my internship is the biggest branch of the
Nayyer Industries Limited.
Following are the recommendations keeping in view the critical and SWOT
analyses of the organization.
1. Nayyer Company Gujrat has to increase their strength and overcome the
internal weaknesses by taking proper and suitable measures.
2. Nayyer should be more competitive and strong to be the leader in market.
3. The internal weaknesses like the loss of key staff and no training sessions
can be overcome by offering them handsome salary packages and proper
work division with the fresh training sessions for them.
4. Nayyer should take the opportunities prevailing in external environment to
get the good results.
5. Nayyer have to protect itself from itself from external threat like
inconsistent economic condition and new technology.
6. Nayyer should keep the mission and vision statement in view while
planning, making strategies and taking decisions.
7. There must be job rotation. One thing I noticed that if one officer is
working in tufted department, he has been doing it from start of his job.
There must be job rotation department wise.
8. There must be performance based reward system. Salary and rewards
must be on performance base.
53

9. There must be permanent job for employees, because it creates loyalty


and sense of belongingness in employees. This thing can't possible in
contract base job.
10. There must be some recreating activities for employees for refreshment.
11. The top management should bring changes in the system of all the
branches.

Suggestions regarding MIS department:


1. Nayyer Industry Gujrat has to improve in Information system to be more
competitive in coming days.
2. Here, it is strongly needed a fast and accurate computerized network.
3. There is also a need to develop its personal software to protect and
secure the data.
4. Nayyer head office should have a proper Server System, because
sometime due to failing in connection with server daily retinue work of IT
department goes into pending on next day. It creates the problem to keep
up to date their work as well a burden for the employees.
5. As Nayyer doesn't up to date its website from a long time to attract the
customer and their timely feedback, as most of the good firms keep their
web well organized.
6. There must be some computer courses for old officers.

SUPPLEMENTARY PART
1. Reference & Sources used
For Nayyer Industries Limited introduction, its mission and its activities, I
collected material from the following site of Nayyer Industries Limited:

www.nayyergroup.com

For definitions, I use following web links:

www.wikipedia.org

54

www.maxi-pedia.com

http://sbinfocanada.about.com

http://www.quickmba.com/strategy

http://www.mindtools.com/pages/article/newTMC_08.htm

http://www.mba-tutorials.com/strategy

http://www.soopertutorials.com/business/strategic-management

This all effort is with the cooperation of employees of the branch. I mention the
names of some officers just for the purpose of reference.
2. Annexes

Questionnaires:
Q.1- What is your name?
Q.2- What is about your job description?
Q.3- What is your academic background?
Q.4- How much long period of time you are giving your services here?
Q.5- What are your major areas of tasks?
Q.6- How do you meet your daily projects?
Q.7- What have you done to increaser your work performance?
Q.8- Do you think the work is distributed properly?
Q.9- How do you establish friendly relation with your boss?
Q.10- What type of relationship are you having with your subordinates?
Q.11- Do you think your work is creative and have chance to progress?
Q 12- Are you helpful to the office members?
Q.13- Do you think you are able to perform all those tasks which are being
performed by your manager in a batter way?
Q.14- Do your manager involves you in companys important decisions?
Q. 15- Do the work assigned to each individual independently or it is allocated to
workgroup?

55

Q. 16- Do you ever annoyed by your work, job or by your manager? If Yes when
and why?
Q.17- What are your activities in free office timing?
Q.18- Do you think there is any space for progress in your office?
Q. 19- Did you manager transfer his power of attorney to other employees?
Q.20- How The IT has revolutionized the technological development in country?
Q.21- Do you think a professional degree is necessary to get a good job?
Q.24- Do you think that there is any need of training you have?
Q.22- Are there any special training sessions during the job to increase
employees skills?
Q.23- Are you satisfied with your jobs?

56