MASOOD TEXTILE MILLS LIMITED

MASOOD TEXTILE MILLS LIMITED

Case study on Masood Textile Mills

Presented To:- Mr. Liaqat Ali

Presented by:- Muhammad Farasat Zia (09-NTU-5028)
Muhammad Hamza Muhammad Imran (09-NTU-5029) (09-NTU-5030)

MASOOD TEXTILE MILLS LIMITED

History of MTM
Masood Textile mills were incorporated in 1984 with 4 spinning mills. Initially it was engaged only in spinning. In 1993 company changed its strategy by adding up most process and disposed off three spinning units. In 1995 company made its own garments units with only 35 stitching and with 75 sewing machines.

MASOOD TEXTILE MILLS LIMITED

History of MTM
In 1996 company management has made the plan to use its own production of yarn for producing value added products because of the slump in international and local yarn market. For implementing this plan, company made heavy investment in 1997 for modernization and expansion of production facilities towards value added operations. For this purpose 6 dyeing machines were installed and further knitting, dyeing and finishing machinery was being imported.

MASOOD TEXTILE MILLS LIMITED

History of MTM
Building was also constructed to install more stitching machines for producing value added products. In 1998, company was earning 470 million rupees per annum which was increasing day by day.

In 2009, it increases and earning raise to 6120 million rupees per annum.
In 2010, company has more than 1725 sewing machines. Today it has more than 4700 stitching machines of different brands. All credit of this success goes to visionary leadership of Mr. Shahid Nazir, the Chief Executive of the company.
MASOOD TEXTILE MILLS LIMITED

Introduction to company (MTM)

Ch. Nazir Ahmed was the founder of Masood Textile Mills limited. The Masood Textile Mills is established under the companies ordinance 1984. Masood Textile is one of the largest knitted garment manufacturers of Pakistan. The company is 100% export oriented. U.S.A. and Europe are major markets of Masood Textile. It is a quality conscious company. The company is ISO 9002 certified.

MASOOD TEXTILE MILLS LIMITED

Introduction (cont)
It is vertically integrated textile unit. The Masood Textile Mills is leader in creating, developing and manufacturing of knitted apparel products.

MTM translates the conceptual ideas of our customers into reality and shape them through our technical bent. The team here strongly believes that Customer satisfaction is the essence of business today. MTM has the technology with expertise, products with knowledge and most importantly the right mindset to achieve total customer satisfaction.

MASOOD TEXTILE MILLS LIMITED

Introduction (cont)
MTM is the only textile unit in the Pakistan with latest computerized bar code system, which assures quality in every operation from spinning to packing; products of each department carry bar coded stickers which bear all the details and history of the operation of that product. If any problem occurs, one can trace back the root of the problem and enables to prevent that problem to be occurred again in future. In the beginning, they were using manual recording system of inventory, raw material & salaries. Now MTM is the only company which has Direct-to-Store supply chain management system. .
MASOOD TEXTILE MILLS LIMITED

AWARDS

Masood has a pride to win following international awards,

JCPenney has awarded Masood "Operational Excellence Award for 2002"

MASOOD TEXTILE MILLS LIMITED

AWARDS
Masood Textile Mills Ltd. is certified by the WRAP Certification Board.

JCPenney Awards Masood "The best supplier of the region award 2001-2002". The ceremony was held in Singapore on 17th July 2002. Shahid Nazir (C.E.O.) received this award.

MASOOD TEXTILE MILLS LIMITED

AWARDS
Certificates Distribution Ceremony for Trainee Stitch Machine Operator & Supervisor on 02/07/2003

JCPenney 30/09/2003

MASOOD TEXTILE MILLS LIMITED

AWARDS
Russell Corporation 12/07/2003

Tommy Hilfiger 19/06/2003

MASOOD TEXTILE MILLS LIMITED

Our Customers

MASOOD TEXTILE MILLS LIMITED

MASOOD TEXTILE MILLS LIMITED

PRODUCTS
YARN:MTM Spinning is capable of producing more than 35,000 lbs of Combed & Carded ring spun yarn from 6/s to 40/s count. Spinning is equipped with state of the art machines from Japan, UK and Switzerland.

MASOOD TEXTILE MILLS LIMITED

PRODUCTS
FABRICS:One of the largest Fabric facility in Pakistan having the capability to produce all kinds of knitted fabrics in 100% cotton & blends.

MASOOD TEXTILE MILLS LIMITED

PRODUCTS
GARMENTS:LOUNGE WEAR

MTM is a leading apparel company in Pakistan having expertise & machinery capable of transforming customer ideas into superior quality garments, which are taken as the most famous brands in the world.
ACTIVE WEAR SLEEP WEAR

ATHLETIC

SPORTS WEAR

UNDER WEAR

MASOOD TEXTILE MILLS LIMITED

VISION STATEMENT

To be the worlds best apparel company

MASOOD TEXTILE MILLS LIMITED

MISSION STATEMENT
"Our Mission is of continual improvement and sustained growth, and of a family of workers. Who are given the best compensation benefits and working conditions in the region. In this respect, MTM continues to emphasize the need to invest in and develop its most precious resource; its human capital. MTM continues to provide training courses and self-enhancement opportunities for all our workers"

MASOOD TEXTILE MILLS LIMITED

Proposed Vision Statement

To be the leading textile company by exceeding customers satisfaction and achieving market leadership and operating excellence in every segment of our company.

MASOOD TEXTILE MILLS LIMITED

Proposed Mission Statement

Produce quality products for its valued customers by continuous improvements, providing proper training and development programs, upgrading of resources and setting quality objectives by analyzing customers' feedback. Provide shorter lead times and best price to our valued customer by enhancing the production efficiencies . Fulfill obligation towards employees and the society. Ahead of our competitors always in new developments and services. To install new machinery and to acquire sophisticated process technology to achieve maximum growth in competitive quality environment. To provide equal opportunities for employees to fulfill their individual goals and aspirations in safe working environment.
MASOOD TEXTILE MILLS LIMITED

Strategy-Formulation Analytical Framework

Stage 1: The Input Stage

Stage 2: The Matching Stage

Stage 3: The Decision Stage

MASOOD TEXTILE MILLS LIMITED

Strategy-Formulation Analytical Framework

External Factor Evaluation Matrix (EFE)

Stage 1: The Input Stage

Internal Factor Evaluation Matrix (IFE)

Competitive Profile Matrix (CPM)

MASOOD TEXTILE MILLS LIMITED

External Factor Evaluation Matrix

Opportunities
1. Increase in apparel retail business

Weight Rating
0.12 4

Score
0.48

2. Exploring new market

3. Modernizing technology 4. Introduce its own label in domestic & international market. 5. Lean manufacturing 6.Export fabric

0.10
0.12 0.05 0.11 0.07

2
4 1 3 3

0.20
0.48 0.05 0.33 0.21

Threats
1. Attitude of the consumer changing 2. Low price offered by other competitors 3. Political instability & government regulation 4. Seasonal orders 0.11 0.09 0.08 0.08 4 3 1 2 0.44 0.27 0.08 0.16

5. Increasing rate of inflation(13.5%)

0.07

0.21

Total

1.00

2.91
MASOOD TEXTILE MILLS LIMITED

Internal Factor Evaluation Matrix

Strength
1. Vertical integrated system 2. High quality product 3. Aggressive R & D 4. Back track system & DTS system 5. Efficient management 6. Flexibility & contingency to increase production 7. ISO certified 9002 8.Financial position 9.Offshore Manufacturing

Weight
0.10 0.11 0.09 0.08 0.07 0.06 0.06 0.09 0.07

rate
4 4 4 4 4 3 3 4 3

Score
0.40 0.44 0.36 0.32 0.28 0.18 0.18 0.36 0.21

Weakness
1. High cost production 2. Employee turnover rate (2.1% per year) 3. Product line limited
4. Small international market share 5. Longer transit time 0.07 0.05 0.04 0.06 0.05 1 2 2 1 2 0.07 0.10 0.08 0.06 0.10

Total

1.00

3.14
MASOOD TEXTILE MILLS LIMITED

Competitive Profile Matrix

MTM
Critical Success Factor Product quality Reputation Management Customer loyalty Market share Technological adoption Weight
0.12 0.09 0.10 0.09 0.10 0.11

MUST Apparel
Rating
2 4 3 3 4 4

Elcatex
Rating
2 2 2 2 2 2

Zara Textile
Ratin g
3 2 2 2 2 3

Rating
4 3 4 4 2 4

Score
0.48 0.27 0.40 0.36 0.20 0.44

Score
0.24 0.36 0.30 0.27 0.40 0.44

Score
0.24 0.18 0.20 0.18 0.20 0.22

Score
0.36 0.18 0.20 0.18 0.20 0.33

Financial position
Price competitiveness Research & development Advertisement

0.11
0.09 0.12 0.07

4
2 4 4

0.44
0.18 0.48 0.28

3
4 3 3

0.33
0.36 0.36 0.21

2
3 2 2

0.22
0.27 0.24 0.14

2
2 2 2

0.22
0.18 0.24 0.14

Total

1.00

3.53

3.27

2.09

2.26
MASOOD TEXTILE MILLS LIMITED

Strategy-Formulation Analytical Framework

SWOT Matrix

SPACE Matrix
Stage 2: The Matching Stage

IE Matrix

Grand Strategy Matrix

MASOOD TEXTILE MILLS LIMITED

SWOT MATRIX
Strengths :1.Vertical integrated system 2.High quality of product 3. Aggressive R & D
4. Back track system & DTS system 5. Efficient management

Weaknesses:1. High cost production. 2. Employee turnover rate (2.1% per year) 3. Product line limitation 4. Small international market share 5. Longer transit time to destination

6. Flexibility in production
7. ISO certified 9002 8.Financial position 9.Offshore Manufacturing

Opportunities:1. Increase in apparel retail business 2. Exploring new market 3.Modernizing technology 4. Introduce its own label in domestic & international market 5. Lean manufacturing 6.Export fabric

SO-Strategy : Market development (S3, S6 , S8, O1 & O2 ) Reduction in lead time. (S1, S5, O3 & O5)

WO-Strategy:Product development (W3, O3, & O4) Market development (W4 O1 & O2) Process optimization & Cost mitigation (W1, O3 & O5)

Threats:1.Attitude of the consumer changing 2.Low price offered by other competitor 3.Political instability & government regulation 4. Seasonal orders 5. Increasing rate of inflation(13.5%)

ST-Strategy: Bringing equilibrium in our resources (S1, S2,S3, S6, S8,T1, T2 & T4)

WT-Strategy:Gaining economy of scale (W1, W4, T2 & T5)

MASOOD TEXTILE MILLS LIMITED

Strategy-Formulation Analytical Framework

SWOT Matrix

SPACE Matrix
Stage 2: The Matching Stage

IE Matrix

Grand Strategy Matrix

MASOOD TEXTILE MILLS LIMITED

Space Matrix
Internal Dimensions
Financial Strength (FS) Competitive Advantage (CA)

External Dimensions
Environmental Stability (ES) Industry Strength (IS)

MASOOD TEXTILE MILLS LIMITED

Space Matrix
Financial Strength (FS)
Return on investment Leverage Liquidity Earning per share Net Income +6 +3 +5 +6 +5

Environmental Stability (ES)

Technological changes Rate of inflation Demand variability Price range of competing products Competitive pressure -1 -4 -1 -3 -2

FS = 25/5 = 5

ES = -11/5 = -2.2

MASOOD TEXTILE MILLS LIMITED

Space Matrix
Competitive Advantage (CA) Industry Strength (IS)
Market share Product quality Customer loyalty Technological know-how Vertical integrated system -3 -1 -1 -1 -1 Growth potential Profit potential Resource utilization Ease of entry into market Repute +6 +5 +3 +1 +4

CA = - 7/5 = - 1.4

IS = 19/5 = 3.8

MASOOD TEXTILE MILLS LIMITED

Space Matrix
X-axis = CA+IS = -1.4 + 3.8 = 2.4 Y-axis = FS+ES = 5 - 2.2 = 2.8
MASOOD TEXTILE MILLS LIMITED

Space Matrix
Conservative
+6 +5 +4 +3 +2 +1

Aggressive

-6 -5 -4 -3 -2 -1

-1 -2 -3 -4 -5 -6

+1

+2 +3

+4

+5

+6

Defensive

Competitive

MASOOD TEXTILE MILLS LIMITED

Strategy-Formulation Analytical Framework

SWOT Matrix

SPACE Matrix
Stage 2: The Matching Stage

IE Matrix

Grand Strategy Matrix

MASOOD TEXTILE MILLS LIMITED

Internal-External Matrix
Quadrant (I, II, IV) Company should be the in position to Grow and build Quadrant (III, V, VII) Company should be in a position to hold and maintain Quadrant (VI, VIII,IX) Company should be in a position to Harvest or Divest
MASOOD TEXTILE MILLS LIMITED

Internal-External Matrix
IFE Weighted score is (3.14)
Strong 3.0 ~ 4.0 Average 2.0~2.9 Weak 1.0~1.9

EFE Weighted score is (2.91)

High 3.0~4.0

I IV

II V

III VI

Medium 2.0~2.9

VII
Low 1.0~1.9

VIII

IX

The MTM is in the position to Grow & Build

MASOOD TEXTILE MILLS LIMITED

Strategy-Formulation Analytical Framework

SWOT Matrix

SPACE Matrix
Stage 2: The Matching Stage

IE Matrix

Grand Strategy Matrix

MASOOD TEXTILE MILLS LIMITED

Grand Strategy Matrix

Rapid Market Growth
Quadrant II Quadrant I

Weak Competitive Position

Quadrant III

Quadrant IV

Strong Competitive Position

Slow Market Growth

MASOOD TEXTILE MILLS LIMITED

Strategy-Formulation Analytical Framework

Stage 3: The Decision Stage

Quantitative Strategic Planning Matrix (QSPM)

MASOOD TEXTILE MILLS LIMITED

Strategies
In our opinion, the following two strategies should be adopted for QSPM Strategy(01)--- Market Development Strategy(02)--- Process optimization and Cost Mitigation

MASOOD TEXTILE MILLS LIMITED

Quantitative Strategic Planning Matrix

Strength
1. Vertical integrated system 2. High quality product 3. Aggressive R & D 4. Back track system & DTS system 5. Efficient management 6. Flexibility & contingency to increase production 7. ISO certified 9002 8.Financial position 9.Offshore Manufacturing Weight 0.10 0.11 0.09 0.08 0.07 0.06 0.06 0.09 0.07 3 3 4 3 4 3 4 3

Market Development AS TAS 0.30 0.33 0.36 0.21 0.24 0.18 0.36 0.21

Process optimization and Cost Mitigation

AS 4 4 3 4 2 4 3 4

TAS 0.40 0.44 0.27 0.28 0.12 0.24 0.27 0.28

Weakness
1. High cost production 2. Employee turnover rate (2.1% per year) 3. Product line limited 4. Small international market share
5. Longer transit time

0.07 0.05 0.04 0.06 0.05

1 4 -

0.07 0.24 -

4 3 -

0.28 0.18 -

Total

1.00

2.50

2.76

MASOOD TEXTILE MILLS LIMITED

Quantitative Strategic Planning Matrix

Opportunities
1. Increase in apparel retail business 2. Exploring new market 3.Modernizing technology 4. Introduce its own label in domestic & international market. 5. Lean manufacturing 6.Export fabric Weight 0.12 0.10 0.12 0.05 0.11 0.07 4 4 3 3 -

Market Development AS TAS 0.48 0.40 0.36 0.33 -

Process optimization and Cost Mitigation

AS 3 2 4 4 -

TAS 0.36 0.20 0.48 0.44 -

Threats
1.Attitude of the consumer changing 2. Low price offered by other competitors 0.11 0.09 3 3 0.33 0.27 2 4 0.22 0.36

3. Political instability & government regulation

4. Seasonal orders 5. Increase rate of inflation(13.5%)

0.08
0.08 0.07

3 4

0.24 0.28

4 3

0.32 0.21

Total

1.00

2.69

2.59

Grand Total

2.00

5.19

5.35

MASOOD TEXTILE MILLS LIMITED

Recommendation

On the basis of QSPM, we make the decision to adopt the cost reduction strategy

MASOOD TEXTILE MILLS LIMITED

MASOOD TEXTILE MILLS LIMITED