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ABS

TRA
CT
Nish
at
Textil
e
Mills
Ltd.
is
one
of
the
large
st
Textil
e
Wamic Hassan
L1s15mbam0010
Arslan Asghar
L1s15mbam0008
Daim-ur-Rehman

L1s15mbam0009

Hareem
Submitted to: Mam Madiha Hamid

ACKNOWLEDGEMENTS
First of all we would like to thank Allah for blessing us with such knowledge and giving this
opportunity to do this work. He gave us knowledge, skills and ability to perform in such a good
way marking our excellence.
We would like to thank Mam Madiha Hamid for giving us this task and helping us understand
the key points of this task. We are thankful to Ms. Arooj (Marketing Manager at Nishat Linen)
for helping us with gathering the information about Nishat Textile. Finally Mr. Jawad
Bukhari( Manager Operations at LaLa Textile) helped us with understanding the planning
process in textile mills and leadships skills. We are thankful to all other fellows too.

ACKNOWLEDGEMENTS 2
EXECUTIVE SUMMARY 4
HISTORY OF THE ORGANIZATION 4
INTRODUCTION 4
VISION STATEMENT 5
MISSION STATEMENT 5
GOALS & OBJECTIVES 5
OPERATIONS OF THE BUSINESS 5

Planning function 6
Formal Planning Process Five Steps 6
Level of management involvement in planning: 7
PORTERS 5 FORCES ANALYSIS OF NISHAT MILLS LTD 7
Contemporary Issues 8

Organizing function 9
Managerial Hierarchy 9
Types of Departments 10
Organizational Structure 11
Application of Organization Design 12

Leading Function 12
Application of motivation Techniques: 12
Efforts towards development and training of Employees: 12
Application of team work: 13
Contemporary issues in Managing human resources: 13

CONTROLLING FUNCTION 14
SWOT ANALYSIS 15
RECOMMENDATIONS 17
CONCLUSION 18
EXHIBITS 19
REFRENCES 20

EXECUTIVE SUMMARY
Nishat have continued on this journey from cotton export to now marking its roots in 4 core
businesses. Textile, Cement, Power Generation and Banking. Nishat is serving international level
quality range of products with the help of its exceptional management skills. For electricity
generation they have their own power generation plant and they are also selling electricity to
government.
They have five divisions; Spinning, Weaving, Dying, apparel and processing each working
separately with huge capacity. Nishat is also running its product range with flagship stores all
over the country with the name Nishat Linen.
They are serving with the help of different departments and are using well established
management information system (MIS) to integrate the functions of the organization in a wellmanaged way. We promise to deliver despite the odds.

HISTORY OF THE ORGANIZATION


Nishat Mills Limited is the flagship company of Nishat Group. It was established in 1951. It is
one of the most modern, largest tall integrated textile companies in Pakistan. Nishat Mills
Limited has 227,640 spindles, 789 Toyota air jet looms. The company have advantage of using
latest textile dyeing and processing units, 2 stitching units for home textile, 120W power
generating capacity and for garments two stitching units. Rs. 39.868 billion (US$ 393.683
million) was the companys total exports for 2015. Due to the application of diligent
management policies, consolidation of operations, a strong balance sheet and an effective
marketing strategy, the company is set on the route of growth. The Company's current
production facilities consists of spinning, weaving, processing, stitching and power generation.

INTRODUCTION
Nishat Mills Limited enjoys the benefits of large scale and uses the modern technology and get
an edge. They have implementation of tactical management and effective policies. They have
market oriented market strategy with aim of continues growth. The company provide various
range of products with company having different production facilities such as spinning, weaving,
processing and power generation.

VISION STATEMENT
To turn the Company into a well-positioned and modern yarn, cloth and processed cloth and
finished product manufacturing Company that is fully resourceful to play a meaningful role on
sustainable basis in the economy of Pakistan. To turn the company into well-developed and
modernized power generating company that is completely resourceful to play its meaningful role
on sustainable basis in the economy of Pakistan.

MISSION STATEMENT
To give its customers quality products and also discover new marketplace to expand sales of the
company with good management and foster a sound and dynamic team, so with the purpose of
achieving optimum prices of products of the company for sustainability and equitable growth
and prosperity of the company

GOALS & OBJECTIVES

To make the company more profitable.


To increase the productivity and overall efficiency of the company
To show innovation by introducing new ideas and become the market leader by getting
better than our competitors.
To increase the span of our global marketplace by knowing the needs of our customers
even before they do and develop and maintain our customer base system.
To achieve efficiencies by monitoring and improving internal processes, enhance
organizational structure and ensure the optimal use of available resources.
To keep our pace with the worlds latest technology trends to provide best quality
products and get more productivity with low cost.
To develop and promote the image of the company in front of the concerned people such
as shareholders, creditors and investors etc.
To play its role in social responsibility and environmental sustainability by promoting
awareness and getting it into practice.

OPERATIONS OF THE BUSINESS


Nishat Textile works with different division such as Spinning function comes first in the
operations then weaving is another function. Apparel, processing and power generation are other
functions. Nishat textile operates by integrating different functions. Operations of Nishat
includes manufacturing of different product lines for their flagship stores as well as power
generating for manufacturing. Operation also include the exports of the garments in the
international market.

Planning function
Formal Planning Process Five Steps
Nishat linen goals are set by top management and then divisional plans are made to
achieve those goals such as Production plans, Quality assurance plans, Marketing plans
etc.
Step 1: Situational Analysis:
Nishat linen have different product lines such as Pret, Nisha, Naqsh, Kids, Homelinen etc. so
they plan accordingly for each product line and gather information about customers and then
check for trends going on and what competitors are doing then they forecast and gathers all
related information with respect to their product and different trends.
Step2: Alternative goals and plans:
They are well established at this point so they dont need to have much alternative plans they
create just 2-3 plans all are made very carefully and with smart objectives.
Step3: Goal and plan evaluation:
Nishat uses flagship stores, exports and sell online so they just need the plan with the best
possible reach. The one that satisfices the goals set by top management.
Step4: Goal and Plan Selection:
The product designs that will appeal the masses with best budget and marketing plan is selected
whereas branding plan is most important these days in the competitive market with other brands
such as Khadi, Warda and LaLa.
Step5: Implementation:
Finally the plan is set in action each line of seasonal range is produced and launched with proper
plan execution. Our own distribution channel is very strong it helps us in organizing our work in
a better way.
Step6: Control:
After implementation we keep in contact with our store managers on weekly basis getting reports
about customer response and if we dont get much response we put more in advertisement and
check our design range with that of our competitors. Plans are made by top management in
Design heads, Marketing department head, Apparel division head.

Level of management involvement in planning:


The Top management is responsible for planning in the larger picture but each division plans in
its own way to execute the plans made by the top management. Middle managers make their own
goals to achieve the goal of the organization. Low Manager then similarly make plans and they
are then put to working to achieve goals. Top management make plans for long term that are not
detailed just direction to capture the market then middle managers make medium term plans
accordingly to take actions to support that long term plan then with few details. Low level
managers make detailed plans with directions to execute them to achieve the overall purpose of
the organization.

PORTERS 5 FORCES ANALYSIS OF NISHAT MILLS LTD


Micheal porters five forces give you an idea about your firms standing in the market.
BARGAINING POWER OF SUPPLIERS:
The bargaining power of suppliers is Low as Pakistan is one of the major
producers of cotton and cotton is the main component for textile industry. Labor is
also cheap to get so suppliers bargaining power is low and textile have an
advantage.
BARGAINING POWER OF CUSTOMERS:
The bargaining power of the customers is also Low because of brand name and
quality. Customers dont need to change brand they are loyal so they have low
bargaining power. Good market in U.S and Europe also play important role in
strong position of Nishat linen.
RIVALRY AMONG EXISTING FIRMS:
The main rivals of Nishat Textile are Crescent Textile and Chenab Textile. There
is tough competition but still Nishat Textile holds its position very well. Power
over industry is equally divided among big fished such as Nishat, Crescent and
Chenab.
THREAT OF NEW ENTRANTS:
There is threat of new entrants as there is not much competitive edge with respect
to technology other than economies of scale. No barriers in the domestic market
and new entrants can penetrate.
THREAT OF SUBSTITUTE PRODUCTS:
Substitutes depends on the customer loyalty and customer spending behavior and
switching costs. There is always threat of substitutes with alike products such as
Khadi is a substitute for Nishat these days with alike products and flagship stores.

Contemporary Issues
There are a lot of temporary issues faced by organizations. Time bound is the major issue
managers must know their project timelines and how to finish their tasks in time or otherwise
overall production will face delays.
Another issue is availability of resources managers must be aware of resources available and
their consumption and their restocking and delivery time.
Miscommunication takes place creating a lot of major problems at all levels.
Managers must know the abilities of their team and plan accordingly.
Legalities related to plans made must be known some plans face legal issues afterwards and
suffers due to faults in research phase.
Technological role must be kept in mind and its capacity plans made without these things in
mind creates problem to meet targets or overexert the usage of resources.
Financing is important plans made without keeping in mind the finance sources are useless.
Plans should be feasible financially.

Organizing function
Managerial Hierarchy

CEO

Director
Processing

Manager
Folding

Manager
Processing

Dy. Manager
Folding

Dy. Manager
Processing
Printing

Dy. Manager
Processing
dying

G.M Local
Marketing

Incharge Fair
Pricing

Dy. Manager
Quality

Sr. Assistant
Manager
waste

Assistant
Manager fair
pricing

Assistant
manager
quality

assistant
manager
waste

Exhibit 1.1
Nishat textile mills follow the formal structure and there is chain of command and
centralized decision making. CEO with his subordinates such as G.M Sales and
Division heads such as Director Processing are top managers while the managers
processing or manager fair pricing or manager of regions or areas are middle
managers. The managers of factory and managers at offices are low level
managers. Nishat strictly follows the formal structure with respect to authority.

Types of Departments
Exhibit 1.2

Human
Resource
Manageme
nt

Internal
Audit

Corporate
Sectariat

Finance &
MIS

Production

Supply
Chain
Manageme
nt

Marketing

Nishat Textile Mills have various departments according to its needs.


HR Department: HR department deals with all kind of issues related to employees or workforce
such as their salaries, the issues they have and the problems they face. HR departments keeps the
environment of the company good and oversees the relationship management inside and outside
the organization.
Internal Audit: This department is a requirement for the company and it keeps the books of
accounts in check and check the working of the internal systems of the organization,
Finance: Finance department check the resource of the firm and gets funds and sponsors. It keeps
the economic environment of the company in check.
Supply chain Management: it is a crucial department in the company your supply chain must be
strong to keep the business running smoothly. All products and all other things needs to be at the
right place at the right time.
Corporate Sectariat: This department is responsible for making strategies and planning for the
overall organization.
Production: Production department is responsible for manufacturing the products and keep in
check the quality control.
Marketing: This department is involved in the promotion activities and advertising activities.
They plan for market penetration and market surveys and knowing customer insight.

Organizational Structure
Exhibit 1.3

Application of Organization Design


It is Matrix organization in which there are different divisions working in their field such as
Spinning, Weaving, Apparel, Processing and Power generation. Then each division have their
own team consisting of members from different departments such as marketing, finance,
corporate, human resource etc. Member from each division are answerable to the head of the
division in which they are working and then they are also answerable to the head of their own
department. Its keeps the organization in check and the working of the organization is double
checked and keeps track of the goals being achieved. It ensures the smooth working of the
company.

Leading Function

Application of motivation Techniques:


Nishat textile is a very well organized firm with strong management understanding the
fundamentals of management. They know how to keep their employees motivated
because they know in return employees will do better work. They keep checking the
employees performance on monthly basis and give incentives and bonuses for good
performance but they know that its not enough so they make challenging goals and with
time schedules as they need to get work done in time to meet their target dates these
things keeps the employees motivated and they provide good work environment by
developing their managers with different managers training programs from time to time
so managers listen to employees give them available resources and sort out their
problems. Employees training programs are also organized from time to time and this
also keeps them motivated. Their HR department is well established and it also helps
employees get in better position. The whole environment of Nishat textile is established
in such a way that keeps the employees motivated.

Efforts towards development and training of Employees:


From time to time Nishat organize seminars on development of employees and different
training programs are organized. When they hire employees they train them first and give
them the same wage rate as other working employees get. This training help Nishat to
keep their product quality maintained. Different training programs are developed for
workers and for managers. They organized executive development program, labor
development program and in-house training programs etc.

Application of team work:


Nishat have different division having its own departments. Teams are of each division
that are working own achieving their own goals for instance Apparel division one team
focuses on making the trendy Nisha style while the other team is working on making the
Home Linen etc. They have different groups working. Nisha by Nishat is marketed
separately.

Contemporary issues in Managing human resources:

Trust should be based on knowledge and intelligence.


Working with multi-generational challenges such as age groups ranging from recent
graduates to senior manager aged 20- 65.
Affected by legislations for workplace such as social security for employees and
workforce and other benefits schemes such as health benefits etc.
Technological advancement have changed the workplace and HR have to check for
telework and flexible schedules and ways of keeping in touch with workforce.
Recruiting and retention problems of employees. Recruiting needs to be precise as
employees at Nishat need to know the fundamentals of the organization because Nishat
secret to best performance is good managers.

CONTROLLING FUNCTION

Control Process is very important for the smooth running of the company there are e steps of
control process.
Step 1: Measuring actual performance:
Manager are required to measure the performance of the employees. Managers at Nishat keep an
eye on the employees because they have monthly evaluation system. They keep observing the
employees from time to time but there are flaws in observation. Then they check the work and
get data on work done, Managers also get information from other employees. In the final phase
managers get written reports about performance of employees.
Step 2: Comparing actual performance:
Manager have set some standards for instance the amount of work done at Nishat is scheduled in
1 hour, managers compare the work done with the standards they have set. If the work scheduled
for 1 hour is done in one hour or not. Manager compare actual work performance with standards
and compare the results to know if there is any problem or everything is going as planned.
Standards are a measure of smooth working of organization. They evaluate if work is overdone
or underdone and make decisions accordingly to take corrective actions or give rewards.
Step 3: Take Managerial action:
Managers after evaluation take corrective actions. They decide if they should take immediate
actions to correct the problem or need to take decisions to solve the problem from the base

sometimes it is not the fault of the employee but the standards set are wrong such as over
expected quota etc.

SWOT ANALYSIS
Strengths

Technology is its major strength as it uses the modern international standard technology
for production of world class products.
Nishat have strong security system for its employees especially for labor which retains
the employees and give them satisfaction.
Nishat is a part of a large industrial group having its roots in different industries so it have
strong financing position.
It workforce is highly motivated and best management team with great working
environment.
They have their own power generation plants.
Quality control have best machinery to keep check on the quality of their products on
different stages.
Nishats ISO certification gives a sense of satisfaction to its employees.
Nishat have Good image in international market as well which gives it more prominent
place.

Weaknesses

The major drawback is Nishat is still following the formal type of organization and its
decision making is centralized. Nishat centralized decision making takes long time and
results in delays sometimes.
Price is high for international market as other competitors are providing products made in
China or Bangladesh while Nishat is making its product in Pakistan with a bit high cost.
Giving high salaries keeps the turnout rate very high which in return results in slow
growth.
Centralization hinders the delegation function which stops the employees to work freely
and be innovative.
International market share is small due to China and Bangladesh share.
Nishat spend more on employees but less on advertisement and promotional activities so
they dont get to attract much in the market.

Opportunities

Exports can be increased with following the procedures laid down by WTO following
international standards and offering products at a competitive prices.
Should implement new ISO standards to capture the international market as they are
more concerned with knowing the in-depth detail of products being provided.
New export zones can be discovered reaching new markets can increase overall
profitability.
Nishat can introduce new products or start new project as people believe in the name of
Nishat so they will have a competitive edge.
Recent brands trend can be used to promote their products more with advertisement as
people now-a-days believe more in brands.
More skilled graduates are stepping in the market and can be hired to skillfully improve
company policies and increase efficiency.

Threats

WTO implementation can be fruitful but if Nishat cannot keep their cost low or maintain
their quality they can suffer heavy losses and lose its place.
Rapid changes in Government policies can be harmful for long planning
Any terrorist incident in Pakistan can cause major unrest in international market which
can impact the marketplace of textile exports.
Increase in competition is a major threat which remains there at all times.
Increase in taxes keeps the company in bad position.
Energy crises is a pest for the profitability of the organization.
Chinese products market penetration challenges the market.
Currency fluctuations makes it difficult to make long term contracts.

RECOMMENDATIONS
These are few recommendation for improving the current condition of Nishat Textile
Mills Ltd.

Females should be promoted in the design division as they having natural esthetical
qualities. They would just introduce new production designs and improve innovation.
Product lines should be expanded with new products range as customers are willing to
buy and there are still wide range of products that can be still used to penetrate new
sectors of garments division such as knitwear etc.
Internal job analysis should be done to know the conditions of the employees working
and improve the system. It will not only result in employees satisfaction but will also
improve motivation level and improve the production.
Males like females should be given transport facility as well because it will save time and
motivate them too.
Medical facility should be given to office administration too not only workforce working
in the mill.
Inventory purchasing should be made better as sometimes there is overstocking making
the funds smaller for other purposes and sometimes understocking which also creates
problems.

CONCLUSION
Nishat textile Mills Limited is one of the largest Textile group of Pakistan having its
root in other industries as well. It still follows the centralized formal system which is
not making things better but slowing the processes and limiting the manager
innovation. Nishat is trying to make itself big in the international market but still
facing some issues with having high cost compared to its competitors.
Nishat is using the latest modern technology to produce the world class products.
Information system is not performing as it should be but management is overall
good so these problems are not so big. Nishat is providing its customers what they
need and quality control makes sure that its quality is not compromised. The major
thing is that at Nishat employees are well motivated although motivation activities
are never enough but still managers are satisfied and are performing well which is
the main cause of Nishat success up till now. Nishat is having some problems but
still having rising sales figures and is expected to be the major component of the
textile industry and be the big time in the international market.
All organizations big or small face problems but it is good management that help
them get out of crises and reach the sky.

EXHIBITS
Exhibit 1.1:
Exhibit 1.1 is about the organizations managerial hierarchy showing the authority levels of
employees and chain of command. There are not much layers and commands come from top
management to low management.
Exhibit 1.2:
Exhibit 1.2 is about different departments at Nishat Textile Mills Ltd.
Exhibit 1.3:
Exhibit 1.3 is about the organization structure it is a matrix organization with divisions and
departments.
Exhibit 2.1:
Exhibit 2.1 is about the control process how control process works in case of different outcomes.

REFRENCES
http://www.nishatmillsltd.com/nishat/pdf/annual15.pdf
http://nishatlinen.com/page/about