Final Project Of Principles of Management on Structure, Culture, Strategic Management, and Corporate Social Responsibility of an Organization.

Pakistan Institute of Development Economics Islamabad

Course Instructor :

Mr. Hassan Rasool

Group Members:

M.

sman !"alid #$roup %eader&

Hameed lla" !"an 'aila (s"raf Mu"ammad mar

Muneeba Hassan S"a"baz )lla"i (*an

Submission date:

+,-.+-/..,

(c0no*ledgement

Interviewees:

Table of Contents Brief Introduction of Kohinoor Textile Mills Ltd. Introduction History Mission State ent Structure Culture Strate!ic Mana!e ent Cor"orate Social #es"onsibilities $inancial #eview Conclusion and Su!!estions

Brief Introduction of Kohinoor Textile Mills Ltd. Pa istan Kohinoor textile Mills Ltd is "art of Kohinoor Ma"le Leaf %rou"& which was born fro the trifurcation of the Sai!ol !rou" of co "anies and is a re"utable and leadin! anufacturer of textiles and ce ent. KML% co "rises of Kohinoor Textile Mills li ited 'KTML( and Ma"le Leaf Ce ent factory li ited 'MLC$(. Both co "anies are incor"orated in )a*istan and are listed on three stoc* exchan!es of the country. KTML was established in +,-. at #awal"indi and is one of the oldest co "anies of )a*istan with over -/ years ex"erience in textile anufacturin!. It was initially set u" as a s"innin! and weavin! "ro0ect with 1-&/// s"indles and 2// loo s. However& after decades of a!!ressive ex"ansion and oderni3ation KTML has e er!ed into a fully vertically inte!rated ho e textiles co "any with state of the art ca"abilities for s"innin!& weavin!& dyein!& "rintin! and stitchin!. The co "any has a diverse custo er base with sales in both the local and ex"ort ar*ets. The ain international ar*ets include 4sia& 5uro"e& 6S4 and 4ustralia. Current Capacit! Kohinoor Textiles co "rises of two s"innin! divisions located at #awal"indi 'KTML( and %u00ar Khan 'K%M(. There are a total of nine units with +-+&/// s"indles ca"able of s"innin! a co "lete ran!e of coarse and fine count yarn fro natural and an ade fibers. In "articular& Kohinoor s"eciali3es in fine count yarn for hi!h thread count ho e textile "roducts. The total "roduction of yarn is 17&7//&/// Lbs "er annu . $ive units with 7-&-// s"indles are at #awal"indi and four units with 2-&-// s"indles are at K%M. The dyein! and "rintin! ca"acity is 87 illion eters "er annu and the ca"acity for "re9 treat ent and bleachin! is 2 illion eters. The axi u width ca"acity for bleachin! is ..8 eters and for dyein! and "rintin! is ..1 eters. "B#$CTI%$S "& T'$ C"MP()* +. To carry on the business of & cotton s"inners& and doublers& linen and cloth anufacturers& 0ute& flax& he "& cotton and wool erchants& dyers and anufacturers of bleachin! and dyein! aterials in )a*istan and all over the world. 1. Throu!hout )a*istan and throu!hout the world& to "urchase & weave and otherwise anufacture& buy and sell and deal in all *inds of cloth and other !oods and fabrics& whether textile netted or loo"ed. .. To carry on the business of dra"ers& furnishers and dealers in water"roof aterials and fabrics& sil* weavers& cotton s"inners& cotton !inners& cloth anufacturers& furriers&

haberdashers& hosiers& )auline& 4 erican cloth& floor cloth and all *inds of i itation leathers and rubbers. 8. To carry on all or any of the businesses of sil* ercers& s wholesale and retail dealers of and in textile fabrics of all *inds. -. To carry on the business of i "le ents of all *inds . echanical en!ineers and anufacturers& i "orters and achinery and

anufacturers of

2. To lease& let out on hire& ort!a!e& sell or otherwise dis"ose of the whole of any "art of the underta*in! of the Co "any& 9 or any lands& business& "ro"erty ri!hts or interest therein. MISSI") ST(T$M$)T Kohinoor Industries has always adhered to hi!h ethical standards and strived to be the industry:s "ree inent anufacturer. The co "any:s Mission State ent enco "asses four "arts: ;ision& Mission& ;alues& and )rinci"les. %ision To be achieved throu!h our Mission& Kohinoor Industries: ;ision is <to be a world9class co "any as defined by the custo ers we serve.< 1"e !o"inoor 1e2tile Mills %imited stated 3ision is to ac"ie3e and t"en remain as t"e most progressi3e and profitable Company in Pa0istan in terms of industry standards and sta0e"olders interest. Mission <=e will exceed our custo ers: ex"ectations in >uality& service& and value? continually increase shareholder value? and "rovide !rowth o""ortunities for our "eo"le.< The Mission is su""orted by our ;alues and "rinci"les: %alues 4Honesty, integrity, and "ard *or0.4 The co "any:s success& as well as the success of individual e "loyees& can be traced to e bracin! and "racticin! these values. $lowin! fro the values of honesty& inte!rity& and hard wor* are a set of "rinci"les that we believe in and use to !overn our behavior as Kohinoor Industries e "loyees. Principles <)eo"le& relationshi"s& custo er& citi3enshi"& innovation& and results.<

People Kohinoor:s "hiloso"hy is to attract& develo"& and retain the best "eo"le. =e focus on !rowin! and develo"in! these "eo"le throu!h continued education& trainin!& and wor* ex"erience. +elationships =e strive to establish and aintain honest relationshi"s with all sta*eholders in the co "any. This is to include e "loyees& shareholders& custo ers& su""liers& and the co unities in which we live. Customer 9 =e reco!ni3e that our custo ers and our ability to exceed their ex"ectations are critical to our total success Citi,enship In the co unities in which we live and the industry in which we wor*& we will actively strive to contribute to a better environ ent for everyone. Inno-ation In an ever9chan!in! of our business. ar*et"lace& new "roducts& services& and technolo!ies are the lifeblood

"ur corporate mission: )ut the custo er first always.

Be flexible to the custo er:s needs. 4dhere to the hi!hest >uality standards. Thin* innovatively but a*e infor ed business decisions. @eliver results

.ualit! Certifications:
S( /000:1002 Confidence in Textile from BTTG Manchester '4ccordin! to Ae*e9Tex Standard +//( Cerficate of (ppro-al ISA ,//+:1/// 5n ISA ,//+: 1/// BS 5n ISA ,//+:1/// '$M( Certificate

3hat is an "r4ani,ational Structure5 4n or!ani3ational structure is a ostly hierarchical conce"t of subordination of entities that collaborate and contribute to serve one co on ai . #es"onsibilities& authorities and relations or!ani3ed in such a way as to enable the or!ani3ation to "erfor its functions.

"r4ani,ational Structure of KTML

The or!ani3ational structure of Kohinoor Textile Mills Ltd. is flat and the flow of authority has a "ro"er channel as shown in the or!ani3ational chart. The chart is divided into a syste atic anner into different boxes while each box denotes a de"art ent or section headed by an inchar!e who su"ervises "lans and controls the o"erations and affairs of the co "any. This or!ani3ational chart shows the flow of authority and res"onsibility fro to" ana!e ent to lower ana!e ent. But accordin! to any observations and "ersonal 0ud! ent& there is a dia!onal and for al relationshi" between ana!e ent whiles the flow of authority in the chart as for al& which encoura!es bureaucratic trends. "+G()I6(TI")(L ST+7CT7+(L 8IM$)SI")S

29 &ormali,ation 19 Standardi,ation

Hi!h Low

I "le entation accordin! to docu ent. =or* is defined so standardi3ation is hi!h.

:9 Speciali,ation

Hi!h

@ividin! wor* activities into se"arate 0ob tas*s. 4s there is a se"aration of de"art ents e.!. s"innin!& weavin! stitchin!& and dyin!. So at KTML "heno enon of wor* s"eciali3ation is dee"ly held and widely shares.
Mana!in! @irector holds the ost of the authority.However& decentrali3ation exists at iddle level of ana!e ent to so e extent.

;9 Centrali,ation

Moderate

<9'ierarch! of authorit!

co bination Hierarchy of authority is blend of both hori3ontal and vertical

=9 Professionalism

oderate

To" ana!e ent has staff has avera!e

oderate orientation. The line

/9Control

Mechanist

Co "any needs enou!h control for stability.

>9 unit! of command

exists

6nity of co

and exists every de"art ent.

209 Span of control

S"an of control is narrow. Therefore or!ani3ation is less efficient but ore effective.

229 7nit! of direction

exists

Mana!ers and wor*ers are "rovided with sin!le "lan of action. Scalar chain exists fro the lowest level. the to" level ana!e ent to

219scalar chain

5xists

2:9Chain of command

hi!h

=e clearly see fro the or!an !ra that there is certain chain of co and bein! followed e.!. finance KTML is re"ortin! to %eneral @irector $inance. )rocess de"art entali3ation is ado"ted at iddle level of ana!e ent at KTML. There is functional de"art entali3ation i "le ented at u""er level of ana!e ent e.!. )urchase& IT& Shi""in! and Lo!istics& $inish $oldin!& Trainin! Centre. 4ll above de"art ents are re"ortin! to director.

2;9Process departmentali,ation 2<9&unctional departmentali,ation

exists

exists

$?PL()(TI") "& "+G()I6(TI")(L C'(+T L$%$LS "& M()(G$M$)T

=e can subdivide the 2. T"P M()(G$M$)T

illBs

ana!e ent into the followin! three

ain levels.

Consistin! of Chair an& H# C 4d in Mana!er& Senior Mana!er $inance C 4ccounts& Senior Mar*etin! Mana!er and %eneral Mana!er. The To" ana!e ent for ulates "olicies and a*es decisions about the co "any activities for achievin! the ob0ectives. %eneral Mana!er i "le ents these "olicies and decisions in the ills. =hile %eneral Mana!erBs authority consistin! of the followin!. Ma*es decisions within the sco"e of his own authority. 4ssi!ns tas*s to subordinates in their areas. 5x"ects and re>uires satisfactory "erfor ance for subordinates. 1. MI88L$ M()(G$M$)T This level of ana!e ent consistin! of 4ssistant Mana!er& S"innin! Master& Labor Afficer& Security Afficer and Ti e Afficer. This ty"e of ana!e ent receives orders fro %eneral Mana!er and i "le ents the throu!h the co9o"eration of lower ana!e ent. =hile the ain res"onsibility of iddle ana!e ent is to control and direct the o"erations with the consent of %eneral Mana!er to !et wor* done. It involves in standardi3ed "roduction& su""lies& !ood wor*in! conditions and definition of standard "erfor ance and re"ortin! of flow of wor*. :. L"3$+ M()(G$M$)T This de"art ent is headed by 4ssistant Mana!er who is also the inchar!e of accounts section. 4ssistant Mana!er controls all the activities of the ills accordin! to the rules and re!ulations receive fro %eneral Mana!er. =hile he "erfor s the followin! ain function: to aintain !ood relations with outside "ublic. %ood relations between %ovt. and ills. %ood relations with !eneral "ublic. 4d inistration of the resident area of the ills. 4d inistration of the e "loyees who are wor*in! outside the "roduction de"art ent in the ills. @is"atchin! of !oods accordin! to the orders of the Head Affice and "ay excise duty on those !oods. #eceivin! of raw aterials for "roduction de"art ent and "ay custo duty on the aterial. #eceivin! orders fro Head Affice and i "le ent those orders under the su"ervision of %eneral Mana!er. %ivin! daily infor ation about the "roduction and other activities to the Head Affice.

Ma@or department of KTML %IDDID% @5)4#TM5DT S)IDDID% @5)4#TM5DT

=54;ID% @5)4#TM5DT STITCHID% @5)4#TM5DT )#AC6#M5DT @5)4#TM5DT E6I4LITF 4SS6#4DC5 @5)4#M5DT M4#K5TID% @5)4#TM5DT )#A@6CT @5;5LA)M5DT @5)4#M5DT

C7LT7+$
Organizational culture is an concept in the field of management studies. This describes the psychology, attitudes, experiences, beliefs and values (personal and cultural values) of an organization. It has been defined as "the specific collection of values and norms that are shared by people and groups in an organization

KTML CULTURE DEFINED

Organizational values kno n as "beliefs and ideas about hat kinds of goals members of !T"# should pursue. $rganizational values develop organizational norms, guidelines or expectations that prescribe appropriate kinds of behavior by employees in particular situations and control the behavior of organizational members to ards one another.
Stron4 culture Stron! culture is one in which *ey values are dee"ly held and widely shared& havin! a !rater influence on e "loyees. The ore e "loyees acce"t the or!ani3ations *ey values and the !reater their co it ent to those values the stron!er the culture is. Stron! culture hel"s fir s o"erate li*e well oiled achines. Stron4 Culture obser-ed at KTML 4t KTML& we observed that there is very stron! culture. 4ll the e "loyees are "unctual. There is no co "ro ise on cleanliness. Deatness and cleanliness is strictly observed. There is se"arate unifor of wor*ers in every de"art ent. Si ilarly se"arate security "asses are re>uired to enter into each de"art ent. There is strict chec* and balance on security. %uards are hi!hly alert every ti e. 4nd sna" shootin! is strictly "rohibited due to security concerns. 4t that "lace& if so eone is found holdin! ca era or obile in his hand& strict action is ta*en and res"ective thin!s are confiscated at o ent by security !uards. 4t KTML& there is a culture to war ly welco e the visitors. =e were "rivile!ed to have . hrs even fro the busiest %M H#G4@MID. =e were cordially allowed to visit the various de"art ents of the ill. =e observed different "rocesses of "roduction e.!. !innin!& s"innin!& weavin!& dyin!& stitchin! and "ac*in!.

$or KTML& the e "loyees are considered as a value able asset to the or!ani3ation. There is culture of care and welfare of their e "loyees. $or health and safety "ur"ose& a !reat deal of initiatives are ta*en and i "le ented e.!. the wor*ers are "rovided with ear "lu!& face as*s and "rotective head hel ets: so that they ay avoid in0ury and "rotect their vital or!ans durin! wor*. =e also observed that the ad inistration has "rovided the wor* s"ace with "ro"er ventilation and air conditionin! syste . Moreover& ost of the su"ervisors were certified first aid "roviders so that in case any accident& they ay "rovide with first aid at the s"ot. Dew e "loyees are ta*en on erit basis. Merit is the criterion& which is strictly followed at KTML. There is an internshi" of 8 to 2 six wee*s in which fresh !raduates are trained and infor ed about KTML culture. Mini u incentives are !iven durin! this "eriod. 4t the end of this "robation an evaluation is conducted and if the e "loyee is considered fit for the co "any then he is hired and "rovided with handso e salary and !ood incentives. 4ll these factors contribute to the !rowth and develo" ent of the stron! culture which is already dee" routed in KAHIDAA# T5HTIL5 MILLS LT@. )eo"le at KTML do the thin!s ex"ected of the . They do these thin!s because they consider the ri!ht.

Se-en dimensions of culture at KTML

(ttention to detail. It eans de!ree to which e "loyees are ex"ected to exhibit "recision analysis and attention to detail 4t KTML& e "loyees do show accuracy in their wor* and they are *e"t under the *een observation and they analy3e the different situation as well. They !ather the detail and they co e u" with dee" analysis and they are attentive towards detailed infor ation by the ana!e ent. "utcome orientation It is de!ree to which ana!ers focus on results or outco es & rather then how these outco es are achieved. 4t KTML& the ana!ers both consider the outco es and they also "ay attention to how these results are achieved to aintain their >uality. People oriented Most of the decisions at KTML are ta*en at ana!erial levels and hi!her ana!e ent do consider "eo"le i "ortant. 4nd they are also concerned about the effects these decisions can have on the "eo"le concerned. Mana!e ent consults with the e "loyees on i "ortant issues as well.

Team orientation.
4t KML tea orientation is an essence of wor* at non res"ective de"art ents. ana!erial levels to "erfor s"ecific 0obs in

4!!ressiveness: 5 "loyees are coo"erative and co "etitive at non co "etitive at iddle level of ana!e ent. ana!erial level but they are a!!ressive and

Stabilit!:
There is stron! status >uo bein! observed at KTML. Ar!ani3ational decisions and actions stron! stress u"on the above.

Inno-ation and ris ta in4:

Innovation and ris* ta*in! is !iven considerable attention at iddle level of ana!e ent for e.!. in ar*etin! and "roduct develo" ent de"art ent. #eason behind is to ado"t the ever chan!in! trends and to co"e with the custo ers de and. But as KTML is a anufacturin! concern& so they discoura!e these ter s at non ana!erial levels as they have to ado"t se>uential "rocess to !et their 0ob done.

(44ressi-eness:

@e!ree to which e "loyees are a!!ressive and co "etitive and coo"erative. 5 "loyees are coo"erative at non ana!erial e "loyees but they are co "itive at iddle level of ana!e ent.

Strate4ic Mana4ement:
Strate!ic or institutional ana!e ent is the conduct of draftin!& i "le entin! and evaluatin! cross9functional decisions that will enable an or!ani3ation to achieve its lon!9ter ob0ectives. Mana!ers a*e strate!y for the lon! ter "lannin! to achieve the !oals. Strate!ic Mana!e ent is what ana!ers do to develo" strate!ies of an or!ani3ation. Strate!ic Mana!e ent "rocess is a six9ste" "rocess that enco "asses strate!y "lannin!& i "le entation& and evaluation. $irst four ste"s describe the "lannin! that ust ta*e "lace& i "le entation and evaluation are 0ust as i "ortant.

S3"T (nal!sis:

S=AT analysis is a ethodolo!y of exa inin! "otential strate!ies derived fro the synthesis of or!ani3ational stren!ths& wea*nesses& o""ortunities and threats 'S=AT(. The "artnerin! of the different ele ents and the extensive data collected as a result of the analysis can serve as a s"ar* for roundtable discussions and refine ent of current strate!ies or !eneration of new strate!ies. These stren!ths& wea*ness& o""ortunities and threats "lay vital role in deter ination of what sort of strate!y should be ado"ted by an or!ani3ation.

ST+$)GT'S
'(%I)G "3) $L$CT+ICIT* PL()T KML havin! own electricity "ower "lant which is "roducin! not only for the K=ML but also "rovidin! electricity to other co "anies and to !ovt. at subsidy rate. $+P S"&T3(+$ 5#) '5nter"rise #esource )lannin!( has been installed in KML that:s why co "any is savin! all records in syste s and havin! hu!e database. P"3$+ L""MS KML has "urchased latest "ower loo s Toyota 4ir Iet )ower Loo s. That:s why they have reduced the "roduction cost and have increased the >uality and efficiency of their textile "roducts. C+"SS C7LT7+(L C"MM7)IC(TI") In KML there are near about 8-// e "loyees who are fro cultures but fortunately there is no cross cultural co M(+K$T +$P7T(TI") KML is one of the havin! trust fro a0or Mills in )a*istan that:s why they have little bit re"utation in local ar*et and different environ ents and havin! different

unication.

investors

=54KD5SS5S
$MPL"*$$AS M"TI%(TI")(L L$%$L

The one wea*ness of KML is that their e "loyees are not "uttin! their resi!ns in front of find out at to see at the ti e of hirin! the

otivated that:s why they are !ettin! off and otivated.

ana!ers and executives. This is the res"onsibility of H# de"art ent to that what the thin! is that their e "loyees can be

$%$+* B""K$8 "+8$+ IS 8$LI%$+$8 L(T$L* The delivery of each contract is always not done on ti e. The custo er has to wait for 8 to - wee*s to !et hisGher desired "roduct. The li*e Farn and Si3in! of raw aterial. (8MI)IST+(TI%$ $?P$)S$S There are hi!h overhead char!es throu!h out the year "articularly ad inistrative ex"enditures. Mana!e ent whether it is lower ana!e ent or u""er the ana!e ent& the ex"enditures are sa e but co "any is !ettin! e>ually "rofit fro that:s why ex"enditures are increasin!. ain reason is that late "urchasin! of raw aterial. #aw aterial 0ust aterial is not available on ti e and so e ti e it ha""ens that there is shorta!e

aterial durin! the runnin! contract that:s why "roduction de"art ent has to wait for the raw

+$LI(BILIT* ") &"+$IG) C7ST"M$+S 4lways or!ani3ation has to rely on forei!n custo ers. KTML is too ris*y and loss of custo ers. C"MM$+CI(L 8$P(+TM$)T Co ercial de"art ent of KML is showin! its little bit bad "erfor ance. Means always the yarn is onth or for cou"le of wee*s so that a ount should be received to "ay the uch de"endin! u"on their forei!n

custo ers but because of ra"id chan!es in "olitical situation& trade C ex"ort laws it would beco e

"urchased late and on credit and "ay ents are done by the de"art ent always very late. There is no "ro"er or "re9"lan for the su""liers. 5ach ti e "urchasin! of yarn is done belatedly so that loo s not run and hence "er day cost increased and de"reciation also. G"8"3) P"SITI") There is no "ro"er "lacin! for final "roducts to "lace the is "ossibility of ista*e. safely and at the ti e of their dis"atch there

$+P S"&T3(+$

It:s !ood that KML has 5#) software in their syste s. But there are nu ber of errors that are occurred uch ti e. $or exa "le& durin! the dis"atch of "roduct& you have to clic* all the rolls is no o"tion to select the do all these thin!s all and other "roble anually. anually. There is to calculate the wei!ht of "ac*ed rolls. Fou have to

CAMM6DIC4TIAD %4) There are a little bit !a"s in co every thin! fro unication between the de"art ents. May be these confir a*e ista*es and bla e each others to safe the . each and

each other but still they

M4#K5TID% A$ T5HTIL5 )#A@6CTS KML has no "ro"er "lannin! for the Mar*etin!. They advertise about their selves only fro news"a"ers. That:s why li ited nu ber of "eo"le *nows about the .

A))A#T6DITI5S
D5= T5CHDALA%F The technolo!y has been i "roved for the textile industry and these technolo!ies are bein! ac>uired by the international co "etitors as well as by local co "etitors so they are "roducin! !ood >uality textile "roducts and increasin! the efficiency as well as decreasin! the cost of "roduction. K=ML has the o""ortunity to invest for the new technolo!y. By ac>uirin! the latest technolo!y& they can increase the "roduction >uality& efficiency and can decrease the cost of "roduction. MATI;4TID% TH5 5M)LAF55S H# de"art ent can "rove and show the !ive the incentives to otivate the . they are here for e "loyees by otivatin! the

e "loyees "erfor in! their best. They can find the

otivation level of their e "loyees and

)#AI5CTS $A# TH5 LAC4L M4#K5T K=ML has the o""ortunity to ca"ture the 4""arel or Ho e Tax& @yein!& Hosiery. ar*et share locally by launchin! new "ro0ects 0ust

li*e they have launched J@hana* Jin 4u!ust 1//7. They can start new "ro0ects in !ar ents&

4@;5#TISID% KML has the o""ortunity to advertise about their selves to "ro ote their textile "roducts. They can advertise in international a!a3ines about the selves a!a3ine to "ro ote the selves

KML can "ublish its own local business

Can also be advertised over the internet 'electronic Mar*etin!(

KMLAS "3) S'"PS KML can o"en its own sho"s in local ar*et where they can dis"lay their !ar ents "roducts

'soc*s& Trousers( and 4""arels as well as curtains. ")LI)$ S'"PPI)G ST"+$ KML can o"en its online store where they can show their !ar ents variety and a""arels. The advanta!e of this ste" would be Anline Mar*etin! Ca"turin! the Ca"turin! the The ar*et over internet internationally ar*et over internet locally

aterial which you "ut on your fair "rice sho" can be sold out at online sho"

TH#54TS
P"LITIC(L I)ST(BILIT* 4s we all *now that the "olitical situations of )a*istan are one of the worst situations of the whole world. 5ach new !overn ent establishes its new rules and re!ulations which i "act the industries badly. there are well as other countries . incre ent in the "rices of %as )er liter incre ent in "rice of "etroleu . any a0or issues which are affectin! the textile industry as

Do subsidy for the research and develo" ents in the textile industry. so e subsidy

4!ainst these rules and i "lications& 4ll $aisalabad Textile Mills boycott in Iuly 1//7 by shuttin! down their Mills and factories. Dow the !overn ent has "rovided the in !as field. 'IG' C")S7MPTI") "& P$T+"L$7M The hi!h consu "tion of the "etroleu is also the a0or issues because in international

ar*et& their "rices are !oin! u" and touchin! s*y& due to which the frei!ht costs are increasin! day by day and hence the cost of "roduction& is also increasin! ra"idly which is beco in! the reason of losin! forei!n custo ers of )a*istan. I)C+$M$)T I) &+$IG'T C'(+G$S The "rices of "etroleu have been increased and still increasin! ra"idly. That:s why the

frei!ht char!es have been increased and the cost of "roductions has also been increased by the hu!e a ount. @ue to these incre ents& the sale "rice has also been increased but custo ers are not ready to "ay co "anies are de andin! ore for a !ood >uality instead of better >uality. 4nd trans"ort ore incre ents to use their trans"ortation services.

I)T$+)(TI")(L ()8 L"C(L C"MP$TIT"+S Ane of the ca"turin! the a0or threats at international level which KML and textile industry of ar*et share in forei!n ar*et is

)a*istan has to face& is international co "etition which is !rowin! u" and co "etitors are ar*et share ra"idly that:s why )a*istan:s cuttin! down !radually due to hi!h cost but "oor >uality of their textile "roducts.

)5ST 4D4LFSIS
)ALITIC4L $4CTA#
6neven "olitical conditions& deterioratin! law and order situation and instability in !as and electricity "rices are adversely affectin! the textile sector& while !overn ent has hardly ta*en any ste" to !ive so e relief or incentives to the ill owners. Textile ill owners and ex"orter have stron!ly denounced

the recent increase in the !asoline "rices and de anded fro

the !overn ent to withdraw the recent

increase and ta*e serious ste"s to hel" textile industry survive throu!h difficult ti es 4ccordin! to the sources& if "rices continue to increase at current rate& the textile industry would find it difficult to survive as the recent increase has already "roven deadly and any ills have started to shutdown in the wa*e hu!e "rice increase. It was also witnessed that due to "rices increase in !as has not only adversely affected the "roductivity of the textile industry but has also caused sudden increase in the "roduction cost and has badly affected the econo y of the country. An the other hand& textile and the other ex"orters also facin! a lot of challen!es due to increase in the "roduction cost of the s"ecific ex"ort !oods& while such hurdles badly affected the )a*istani ex"orters to in the local and international eet the challen!es and co "ete ar*ets. 5x"orters are de andin! that !overn ent should !ive the

facilities to co"e with the existin! challen!es and not !et involved in favoritis .

5CADAMIC4L $4CTA#
5cono ical factors are also disturbin! the all industries of )a*istan as well as the textile industry. $ro +,,, to 1//7 the inflation rate has been increased by +//K. The last and current %overn ent has been failed to control the econo y. 4s the "rices have been increased& the su""liers try to !et and save ore "rofit fro their invest ents. That:s why "rices are decided and "ut with a hi!h return in the !overn ent 0ust isused ter s of "rofit. Before 1//7& textile industry was !ettin! nu ber of incentives fro these o""ortunities and unfortunately %ovt. "ulled bac* these ty"es of incentives. The ain "roble with the textile industry is shorta!e of electricity& !asoline and "etroleu & due to uch cost that why they have to increase their "rices to earn "rofit

li*e #C@ '#esearch C @evelo" ents( and subsidies on the utilities. But so e co "anies

which Textile industry is bearin! too s"end a lot of oney to run the .

or for brea*9even. There are so e co "anies which have their own electricity "lants but they have to

Ather "roble s which are facin! by the textile industry of )a*istan are Dot availability of s*illed labors. Labors cost is increasin! ra"idly Loosin! >uality of its "roducts in both )oor ar*ets do estically and internationally

onitory and $iscal "olicies of the %ovt. of )a*istan

6neducated "eo"le Investors are "ullin! out their ca"ital fro the ar*et >uic*ly

$orei!n Invest ents are not co in! towards Textile industry

These are the factors which are disturbin! the textile industry stron!ly econo ically.

SACIALA%IC4L $4CTA#S
Textile industry affectin! the society and environ ent in nu ber of ways& so e of the below. )ollutin! the air by "ushin! out ruins of che icals. @ifferent !ases in air react with these ruins which beco e dan!erous for hu an bein!s. Do "ro"er syste to throw out the useless aterials and che icals. are entioned

Most of the useless

aterials and acids are thrown into the fields which are react or disturb the

a!ricultural "roducts seriously. Since the cost of the "roduction and labor cost are increasin! day by day. That:s why the final "roduct cost is also increasin! that:s why "eo"le are buyin! low >uality "roducts and not s"endin! too uch to "urchase.

Textile co "anies are firin! the labors and e "loyees as well because of hi!h "roduction cost and salaries that:s why the une "loy ent rate is increasin! day by day which is not !ood for the industry as well as for the country.

T5CHDALA%IC4L $4CTA#
The technolo!y has been i "roved and u"dated in the textile industry of )a*istan and so e of the co "anies in textile industry are ac>uirin! these technolo!ies. By usin! new technolo!y not only they i "rove their >uality and efficiency but also i "rove their "roduction as well as reducin! the cost of "roduction.

Cor"orate Social #es"onsibilities:

Cor"orate social res"onsibility 'CS#(& also *nown as cor"orate res"onsibility& res"onsible business& sustainable res"onsible business& or cor"orate social "erfor ance& is a for of cor"orate self9re!ulation inte!rated into a business odel. Ideally& CS# "olicy would function as a built9in& self9re!ulatin! echanis whereby business would onitor and ensure its adherence to law& ethical standards& and international nor s

Cor"orate Social #es"onsibilities of Kohinoor Textile Ltd:

CAM)5DS4TIAD B5D5$ITS C $4CILITI5S:

Kohinoor Industries Ltd. "rovides followin! benefits and services to itBs e "loyees: Bonus:

)rofit Bonus is "aid to all e "loyees every year de"endin! on "rofitability of the co "any. #ecreation 4llowance:

#ecreation allowance e>ual to one onth basic "ay is allowed to an e "loyee who has co "leted yearly service without havin! absence or leave without "ay to his credit durin! the year. 4ttendance 4llowance:

4ll e "loyees whose basic wa!es L coat livin! allowance do no exceed #s.+///G9).M are "aid #s.8/G9 ).M. as 4ttendance 4llowance if they have no absence or leave without "ay durin! the onth. House #ent 4llowance:

4ll e "loyees who are not entitled acco odation by the co "any are "aid house rent allowance at the rate of +/K of the basic "ay "er onth. Insurance:

4ll e "loyees of the ills are insured under State Life insurance. In case of any accident or death of e "loyees& the insurance co "any "ays insurance oney to no inee. Leave:

Three ty"es of leaves are !iven to the e "loyees:+. )rivile!e Leave '4nnual Leaves( 1.Medical Leaves ..Casual Leaves' $or staff& 7 casual& +/ edical and +- annual( $or officers +/ casual& +/ edical +- annual.

%ratuity:

%ratuity is !ranted by the ills on resi!nation fro services or ter ination fro services for any reason other than isconduct. =hile 1/ years of services "rescribed for the "ay ent of !ratuity by the co "any. The rate of "ay ent of !ratuity is 1/ days wa!e for every co "letion year of services.

5cono ic and other Incentives:

Co "any also "rovides credit facilities to its wor*ers without any interest. =hile this sche e is *nown as advance "ay ent sche e and s all a ount is deducted fro the e "loyee:s wa!es to recover the credit !ranted by the co "any. @earness 4llowance: ills also "ays dearness allowance to its wor*ers.

Li*e !overn ent e "loyees this Travelin! 4llowance:

Travelin! allowances are "aid to those wor*ers who travel for the $ree 6nifor s:

ills wor*.

The co "any issues unifor s to fore en& "eons& watch en and security staff at free of cost. 4cco odation:

4cco odation is "rovided to about 7/K of the e "loyees. 5lectric& !as& water su""ly and flush syste facilities are ade available by the co "any. School:

Hi!h school for boys and !irls& and "ri ary school for both are functionin! in the ills colony. The co "any "rovided beautiful buildin!s for schools. Till +,M+& the Co "any was runnin! these schools at itBs own cost. 4fter that the sa e were nationali3ed. =elfare Centre:

In the =elfare centre wor*ers club buildin! is "rovided. Sho""in! co "lex to "rovide essential !oods also exists. Canteen:

Co "any is runnin! the ills canteen round the cloc* for wor*ers welfare. Meals and tea are sold at subsidi3ed rates. Co "any is contributin! onthly subsidy #s.18&///G9 ).M. on this account. Medical Centre:

In addition to the Social Security Hos"ital the co "any has itBs own Medical Centre for those e "loyees and their fa ilies who are not covered under the Social Security Sche e. Medical Afficer and )ara9 edical staff is e "loyed in the centre.

Mos>ue:

$or the convenience of its e "loyees the co "any has "rovided a very beautiful and co odious Mos>ue in the ills "re ises. The co "any bears all ex"enses of the Mos>ue includin! "ay of the staff e "loyed therein.

Social Abli!ations =e co "ly with all a""licable labor laws?

Co "any )rofits 4ct& +,27 '=or*ers: )artici"ation( 4ct re!ardin! "artici"ation of wor*ers in co "any "rofits. 5 "loyee Ald 4!e Benefits 4ct& +,M2 4ct relatin! to old a!e "ension. 5 "loy ent of Children 4ct& +,,+ 4ct to "rohibit child labor $actories 4ct& +,.8 Law re!ulatin! labor in factories. )rovincial 5 "loyees Social Security Ardinance& +,2 Sche e "rovidin! health benefits to e "loyees or their de"endents. Industrial #elation Ardinance& 1//1 Law relatin! to trade unions C re!ulations of relation between e "loyer C wor*er. =est )a*istan Industrial and Co ercial 5 "loy ent Ardinance& +,27 Law relatin! to industrial and co ercial e "loy ent

=or*ers: Co "ensation 4ct& +,1. 4ct "rovides for the "ay ent by e "loyers to wor* en for co "ensation relatin! to in0ury by accident.

Biblio!ra"hy:
$or successful co "letion of this "ro0ect we have utili3e different available resources& fro which we have obtain re>uired data. These resources lie in both di!ital and analo! for . Most of the infor ation is obtain fro Internet& while a visit to co "any is also ade to !et further infor ation. =e are than*ful to co "any ana!e ent who had welco e and coo"erate with us.