In the name of Allah, most Gracious, most Merciful

Internship Report on Naveena Exports Limited

Submitted To

Ma’am Sadaf Ehsan Lecturer, CIIT Lahore

Submitted By

Muhammad Mahmood Aslam Roll No-10 BBA-Batch V

Submission Date

28 August 2009

COMSATS Institute of Information Technology, Lahore

Acknowledgement

I really acknowledge the efforts made by Mr Tuseef Anwar Ex Assistant Manager, Human Resource, Naveena Exports Limited, as well as Mr Rana Ayub Ali Manager Human Resource, Naveena Exports Limited, They provide me guidance in every step to learn the things in a better and productive way, without their support, I may not able to complete this report in due course of time.

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
This Internship Report is dedicated to all the industrial workers, who are the real source of combustion to run the engine of economic activity in country like Pakistan, invest their days and nights but find nothing except few rupees.

Mahmood



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Executive Summary
Naveena Exports Limited is renowned name in the textile business; it started its working in 1965 from a small unit of knits in Karachi with a capacity of few tons production per annum. It gradually got the success and now it has buyers from all over the world. For me working in Naveena was a thing of great pleasure as it has more than one business units which are dealing with different sector, besides this having diversified workforce which provides the students interns a real time learning environment. During my six weeks tenure in Naveena, I have passed a major portion of my time in Human Resource Department, in which I have learnt about the Labor policies, ISO certification procedures, Human Resource Information Management System (HRIS) as well as the major Human Resource functions. I have pen down all of my experiences in this report. As I am doing my specialization in Human Resource Management and wanted to adopt HR as my profession so this internship will be very beneficial for me and my career. In my report I have written about all the business units of Naveena as well as the departments which are playing a major role to make it a successful organization. I have also performed different analysis to get a clear picture about the company and threw light about the company future. In a nut shell, Naveena Exports Limited is a learning organization, it not only provide a learning platform to its employees but student interns as well.

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Contents
COMPANY PROFILE ................................................................................................................................... 3 INTRODUCTION ......................................................................................................................................... 4 MANAGEMENT HIERARCHY ...................................................................................................................... 8 BUSINESS UNITS OF NAVEENA ............................................................................................................... 13 SBU’S ANALYSIS ....................................................................................................................................... 31

INDUSTRY ANALYSIS ................................................................................................................... 32 BOSTON CONSULTING GROUP MATRIX .......................................................................................... 37 PEST ANALYSIS......................................................................................................................... 39 SWOT ANALYSIS ...................................................................................................................... 45
DEPARTMENTS OF NAVEENA GROUP ............................................................................................ 54

HUMAN RESOURCE DEPARTMENT ................................................................................................ 55 QUALITY ASSURANCE DEPARTMENT .............................................................................................. 74 MERCHANDISING....................................................................................................................... 75 FINANCE DEPARTMENT ............................................................................................................... 79 RESEARCH AND DEVELOPMENT ..................................................................................................... 80 MANAGEMENT INFORMATION SYSTEM .......................................................................................... 81 PRODUCTION PLANNING AND CONTROL .......................................................................................... 82 PURCHASE DEPARTMENT ............................................................................................................ 84 EXPORT DEPARTMENT ................................................................................................................ 86
ENVIRONMENT, HEALTH AND SAFETY POLICY ............................................................................... 88 MARKETING MIX OF NAVEENA ..................................................................................................... 90 PRODUCT LIFE CYCLE..................................................................................................................... 95 CONCLUSION ................................................................................................................................ 97 RECOMMENDATIONS ................................................................................................................... 98 LEARNING AS AN INTERNEE ........................................................................................................ 100 GLOSSARY................................................................................................................................... 107 BIBLIOGRAPHY............................................................................................................................ 108 APPENDICES ............................................................................................................................... 109

Naveena Exports Limited

Introduction to Naveena Exports Limited

Introduction to Naveena Exports Limited

Company Profile
Name Naveena Exports Limited

Logo Slogan Established in Geographical Location Industry Major Units Currently working Production Capacity Where Quality Matters 1965 Karachi, Lahore- Pakistan Textile Dying, Knitting, Stitching, Woven, Denim, Apparel Denim, Apparel, Woven, Vtrack 32 million meters-Denim unit capacity 15 million units -Apparel unit capacity Number of Employees Group Turnover Mode of Business Business Based Major Buyer Certifications 6000 Employees US $ 100 million Business to Business Manufacturer and Exporters USA, Europe ISO 9001-2000

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Introduction to Naveena Exports Limited

Introduction
Naveena Group is country’s one of the major export oriented group of companies which mainly deals with the apparel. Management at Naveena believes on the quality philosophy that’s why from yarn to the fabric manufacturing and from textile to the garment, in each step quality assurance department is there to verify the quality perhaps this is one of the major reasons of success of the Naveena in textile sector. Currently it has more than 6000 employees which are currently working in different units of Naveena and helping the organization to achieve its mission. Naveena took its start in 1965 from the small knitting unit having worth of 1,400,000 PKR and now from the figures of year 2007 the company has the worth of 5,000,000,000 PKR. Naveena Group comprises of Dyeing, Knitting, Stitching, Woven & Denim units as well as VTrack, a hi-tech Fleet Management & Vehicle Security system. Evolution of the Naveena started four decade back and there are several factors involved behind the success story in which the top most is the upper management philosophy particularly visionary leadership of Mr Masood Riaz Tata who develop this business empire in this age of high competition. Beside this its latest production system, quality philosophy, niche marketing are all there to make it distinct from rest of the other textile manufacturer. Corporate value of Naveena includes Integrity, constant self improvement through continuous learning, Leadership, Teamwork and Social Responsibility. Naveena Focuses on four major corporate pillars. 1. Customers 2. Suppliers 3. Employees 4. Quality There are two internal props that are employees and quality through which Naveena is able to gain and retain the customers’ satisfaction as well as the suppliers’ commitments. It is

the company which is highly committed to continuously providing superior customer value, worker dignity, shareholder satisfaction and society welfare by following the guiding principles like fulfillment of customer need, communication with vendors, Strict compliance with quality control system, on time deliveries and Career development opportunities for employees.

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Introduction to Naveena Exports Limited

Historical Prospect
Naveena was established in 1965 with a single Composite Knit Unit, Naveena Group has grown leaps & bounds to branch out not only within its core textile business but has also incorporated technology oriented services in its line of businesses. Today the Group comprises of Dyeing, Knitting, Stitching, Woven & Denim units as well as V-Track, a hi-tech Fleet Management & Vehicle Security system. In this about 44 years from the starting point of Naveena it achieves different mile stones. From a single composite unit of Knitting and about 200 employees now it has more than 5,000 employees in its different unit. The growth of Naveena is not sudden it took year to reach at this position however its worth noting that it remain the property of Tata group who was the actual founder of the company and still it is under their supervision. This Tata group must not confuse with the Tata group in India which is a renowned business group of the world. The Tata group working here in Pakistan is a separate entity but it is amongst the 20 richest families of Pakistan. So, from the start the financial position of the Naveena was quite strong and from the beginning of the period it has sound position which encourages it to grow. The graph represented here is the illustration that how Naveena progressed in its 40 years tenure.

Growth of Naveena Textile
4500 4000 3500 3000 2500 2000 1500 1000 500 0 1960-70 Knitting 1970-80 woven 1980-90 1990-2000 2000-2009 Stiching Dying Apparel

Production (Tons)

Growth

Units Extension (over the Year) Graph 1- Yearly Growth of Naveena

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Introduction to Naveena Exports Limited

Vision, Mission and Corporate Goal
Though in the past year 2008, there was greater downsizing and the major changes at management level through out the organization in Lahore but after that from the beginning of year 2009, Naveena has been able to stabilize in the market. Naveena was one of the victims of the crisis of Textile sector but it is for shorter period. Within the period 6-7 Naveena has started its apparel unit. Naveena has developed its mission and vision by keeping in view the industry situation as well as the competition in the Market.

Corporate Vision

Naveena Vision statement states that “We will be the one company committed to continuously providing customer value, worker dignity, shareholder satisfaction and society welfare.”

Principles Followed, to achieve the Vision

There are the following principles which are being followed by the Naveena in order to achieve go beyond its vision. These guiding principles are as follows In time action Clear understanding of customer’s instructions. Clear communication with vendors Clear instructions for production Strict compliance with quality control system. Total devotion maintains first class quality standard. Absolute efforts for in time shipments Career development opportunities for employees

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Introduction to Naveena Exports Limited Mission Statement

Naveena has quite long mission statement which covers all the components of mission statement like what we are? What we do? And how we do? It states that “We earnestly and sincerely look forward to satisfying our clientele. We are continuously researching in innovation and the latest technology to keep pace with market requirements. Aim is to produce the best range of fabric and garments in vogue. We pay attention to cost effectiveness; therefore we are able to give quality at competitive prices. We pay due attention to our environment and avoid pollution. Last but not least, we abhor child and forced labor.”

Corporate Goals

The three pillars on which the Naveena Exports Limited has its corporate structure are 1. Continuous improvement 2. Customer’s satisfaction 3. Quality of product and system All these pillars are the pillars of quality system which the organization owns in order to satisfy its customers. Continuous improvement means the process of quality is not still at a certain point, it continuously moving towards the improvement and cant be still to some location, and the sole objective of this continuous improvement is to satisfy the customers need by giving the customer the quality products.

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Introduction to Naveena Exports Limited

Management Hierarchy
Naveena Textile Limited is highly autocratic organization in which authority is in some hands that used to run the organization by utilizing their authority. Decision making is there at the top most of the organization and employees find little space to implement their own decision. A top level management hierarchy of the Naveena is attached in the appendix 1.

Top Management
As it is a private limited company so, its shareholders is its family member and the ownership is in between two brothers of Tata Family. The owner is actually own the house of Chief Executive Officer and below him is the directors who are really very close to the CEO. Directors are on departmental level that can be director production, director marketing, director services and compliance. These directors are responsible to run their own department. Below these directors, each department owns its head of department who acts as a middle man in between the directors and the mangers. Head of department usually have most of the knowledge regarding the concerned department however directors usually own broaden vision and are responsible for strategic maker for the organization.

Middle Management
In this level of Management there are the managers and assistant manager or in some cases there are some posting of officers who actually play a role of bridge between the top level management and the low level management. Middle level management is the personnel who are actually working for the organization in practical ground. As I have described earlier that it is highly autocratic organization so middle management usually don’t have authority to make the decision even of their daily routine task, they have to go for the head of concerned department or towards the director. Top management usually takes strict action when ever middle management impose its authority and high plenty has to pay by that particular individual. Middle management is that part of management which always remains the victim of job insecurity and any change in the policies of top management can cause them to loose their job. Might be this is the possible reason that efficiency level as well as the motivational level at this stage of the employees remain at the edge of extinction.

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Introduction to Naveena Exports Limited

First Line Management
Usually in services department there exist no post of first line manager except in admin department where some clerical posts are there who are supposed to be the first line manager. In production level there exist supervisor posts including the general supervisor, quality supervisor, stitching supervisor etc. People on these posts are responsible to answer the middle management. Middle management acts as a role of bridge between the top as well as low level management. Turnover rate at this level is very small and on the average people work for the organization for 8-10 years. The possible reason is that the risk of job insecurity is very low except in some chances as in the last year 2008 there was widely downsizing in the knits and dying units of Naveena and for those more than 2,000 workers got fire from the organization.

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Introduction to Naveena Exports Limited

Decision Making Process
As the organization is highly bureaucratic in its structure and organization culture is also autocratic. Command and control of the organization is in few hands and these few hands are responsible for the decision making and rest of the organization is the follower who used to follow the orders imposed by the top management. In centralization decision making, some time when the thing is to make quick decision than it acts affectively while when in some cases the failure of the decision very serious result.

Naveena Human Resource Dilemma In year 2008, Top management decided to start downsizing in two of its units that are Knits and dying, the sudden downsizing was quite shocking news not only for labor level but also at the middle management level. Without taking in confidence to the human resource department, CEO and directors of Naveena decided to change the policy of gratuity for the employees. This causes a serious curse in the employees and they started agitation in the Naveena resultantly Naveena has to close its working for more than a month. The market value of the Naveena started decline and turnover rate in other units also give rise to 50%.

Decision making process in Naveena started from the CEO and directors which is called the competent authority in the HR manual. After getting the consensus from the directors, CEO issues the order to the concerned head of department. Head of department in some causes study the feasibility of the decision (this happens in few cases) if the decision is feasible than HOD put forward this decision to concerned managers or assistant managers and they implement the decisions and later on the results are being compared that it give rise to the acquired results or not. Here the one of the major role is also the unit manger or admin manger which on actual is responsible for the whole unit. It is more responsible for the administrative problems in the organization rather than the decision making. As it is highly bureaucratic organization that’s why decision making power is in few hands, from the head of department, the decisions got implemented to the concerned managers and assistant manager from where it proceed further to the implementation on real grounds.

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Introduction to Naveena Exports Limited There is a larger gap exist between the decision making body and the implementation of the decisions that’s why most of the decisions of management don’t get the success as it should or you may say that the policies in Naveena can not implemented with its real soul rather than it got impose on the employees that’s why it does not lead to the required results. In few cases it leads to the negative phenomenon. In few cases it has also some positive aspect as there is centralization of command so the implementation of decision is not a big problem and people agitate fewer as compared to those textile mills in which there are decentralized decision making bodies. Beside this management can make a quick response to the external forces and this may lead to the flexible decisions.

Decision making bodies

Figure 1- Decision Making Process

As you can see here in this figure the decision making body at Naveena Export limited comprises of the competent bodies in which CEO, Dir and Admin Manager are there to make the decisions and no other stakeholder is there.

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Strategic Business Units of Naveena

Strategic Business Units of Naveena Exports Limited

Business Units of Naveena
Naveena Exports is a well known name in the textile industry. It was established in 1965 since then Naveena Exports work in this field of textile to form innovation and exploring of new efficient and effective productive ways to generate chic and classy outfits for its billion of customers all over the world. Naveena has been an expert and biggest producer of Denim at international level along with Knits and Woven having an annual turnover of $100 million. They have been working on the path of latest productive systems and technology along side its implementation, that has moved them forward and has opened new areas to move high in the field of textiles. “Buyer Satisfaction” is their ultimate goal. Keeping in view their performance besides aggressive marketing they have rigid guidelines on the Quality Control, on time delivery and satisfaction of the buyers. The same passion and entrepreneurial spirit on which the Company was founded on more than 40 years ago continues to drive their on going success. Naveena is a complete vertically integrated group; all its requirements are under one roof to serve the demands of today’s markets and to give the buyers the best service possible. Registered as Naveena Exports (PVT) ltd. and is being headed by Mr. Masood Riaz Tata. Today the Group comprises of the major five units and all of these units have state of the art production system. These major units are

Knitting/Stitching Dyeing Denim Woven V-Track (a hi-tech Fleet Management & Vehicle Security system)

All these units work cross functionally while on financial gains and losses each unit is independent and have no impact on the functionality of other units. I will briefly explain about the working of all these units.

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Strategic Business Units of Naveena Exports Limited

Naveena Knitting Unit
The achievement of excellence in the field of knitting has been a challenge for Naveena. For this purpose, they have always remained adaptable towards the changing fashion trends and styles. This commitment has always enabled them to keep ahead of all of their competitors. These whole procedures and developed systems have evolved them into a progressive and a forward thinking enterprise to own their dreamed accomplishments and to continuously figure out the changes. The Knitting Floor at Naveena is equipped to manufacture both Solid and Striped Fabrics with a number of knitting possibilities such as: Crepe Mock interlock Double fleece Gaufre 4/6 needles Plain Jersey Lock Knit Small Structured Fabrics with Tuck or welts Pique or double pique

When it comes to adding new machinery to Naveena’s fleet, the philosophy is that the machine should be modular, versatile and compatible with other models, thereby allowing us to diversify the production range with ever changing fashion trends. The Knitting facility therefore includes various types of machines to achieve specific types of knits: Striped Fabric knitting Machines Single Jersey Knitting Machines Flat Knitting Machines Due to its high production capacity and less competition knitting was one of the successful business unit having not only the international buyer but local buyer as well, the possible reason is its machinery and production system.

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Strategic Business Units of Naveena Exports Limited

Production Units

Naveena owns two production units located at different geographical location and each of having different production capacity as well as different technology. These units are Naveena knits-Karachi Naveena knits-Lahore At Naveena knitting unit situated in Lahore it capacity is 3.6million tons/annum production while the second unit situated in Karachi has the production capacity is of 2.9 million tons per annum. Naveena knitting unit situated at Lahore is temporarily shut down in the year 2008 while the Karachi unit is currently working. The annual revenue which the company earns from the knitting unit was $35 million. Naveena has a very good repute in the market and all of the customers are international. The major buyers of knitting product of Naveena are Target Stores, Roca wear, Marshall Fields, Abercrombie & Fitch, Ever last, Elko, American eagle, Vetter, Mervyns, Casual Male, Beverly Hills Polo Club. Product Range

Naveena owns a wide range of knitting products that’s the reason that it can attract a wide range of customers throughout the globe. The major products are Crew necks Jackets Polo shirts Auto stripers Henley-Neck Engineered stripers Rugby shirts Feeder stripes Hoodies All are fashioned with different add-ons depending on the demand and the need of the target customers. The cost of the product is also varying from product to product as well as the demand of the order. Usually trend is that the more bigger the order for a particular product and less the cost incur that’s why company agrees too put it on a lower cost to its customer in this way customer as well as the company got benefit from this trade.

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Strategic Business Units of Naveena Exports Limited

Types of Knitting

With their state-of-the-art processing equipment, precision treatment of fabrics has allowed them to produce for fashion savvy customers worldwide. They have specialized trained work face as well as exquisite machines that make them trendsetters in the fashion industry. There are two kinds of knitting which can be performed at Naveena exports limited: 1. Flat knitting 2. Circular knitting

1-Flat Knitting

The purpose of flat knitting is to prepare collars and coughs. They are given the fabric by circular knitting department and after that the technician at the flat knitting machine feeds the designs according to the demand of the buyer. They are given a complete production plan by the PPC department, which they need to follow to get the desired result. Machinery

For the purpose of flat knitting Naveena facility flat knitting department is equipped with 21 automatic flat knitting machines. Three operators, one helper and a master manage them. The capacity of each machine is 250 sets in 24 hours, and according to the statement of machine operators they are easily achieving the maximum capacity on regular basis. All the machines are 14 gauge machines, which mean every machine can have 14 needles per inch. The more the gauge better will be the quality. Common error is that of needle break, which spoils the whole fabric if not detected at once. Setting the needles in the machine according to the requirement is an art and the master has to be the master in this art to get the desired result and to avoid error. Maintenance

There is a separate maintenance department present but there is no concept of preventive maintenance, only break down maintenance is done which costs the organization much more than the preventive maintenance.

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Strategic Business Units of Naveena Exports Limited

2-Circular Knitting

They again get their line of action from the PPC department. The purpose of the circular knitting is to convert yarn into fabric. Machinery

There are total 15 machines 9 of them are computerized and called auto machines. These machines are capable of making maximum stripes on a fabric while using four colors at a time. The auto machines are mostly used for the preparation of fabric of dark colors and having stripes or repeat. The remaining six machines are called feeder machines. They cannot make a stripe more than 2.5 inches on a fabric. Mostly they are used for simple fabrics of white and light colors. Each machine is capable of producing 150 kg per day. A total of 192 cones of yarn can be added to a single machine of four different colors, 48 cones belong to each color. One person handles each auto machine and two feeder machines are under one person. There is a supervisor and a master present to keep check on the things. The machinery is not capable of producing French terry and fleece fabric. Any order of these two fabrics is outsourced. All the machines have flexible gauge facility, which is set according to the buyer requirement. Quality Parameters

After the fabric is prepared it is checked by the quality personnel on a machine called clatter machine, using the 4 point system. This machine enables the quality personnel to detect various defects in the garment, after detecting the error they mark it and send for appropriate corrections. The errors, which cannot be removed, are then cut off in a way that their effect should not be on the finished garment. Laboratory

Naveena owns the latest technology for testing crocking/colour fastness etc. with the help of data color spectrophotometer.

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Strategic Business Units of Naveena Exports Limited

Naveena Woven and Dyeing
With over 25 years of experience in the manufacturing of woven fabrics, commencement of woven garment was a logical extension of business. Naveena woven was established in 2002 as an independent unit to cater for the growing global demand for high fashion garments and jeans. Due to a strong technical and professional backup, at present, Naveena Group is producing 8000 jeans per day and in the near future, management plans to enhance this capacity to 15000 jeans per day. The Weaving unit is fully supported by highly skilled professionals along with state-of-the-art stitching and washing machines from Japan, Italy and Turkey enabling them to produce high fashion products. Naveena has state of the art machines for dying; there are two types of dyeing are available at Naveena that are Yarn Dyeing and Fabric Dyeing. For each type of dying different machines are being used in which different type of dyes can be used according to the need of the fabric as well as the demand of the customers. These types of dyes are reactive dyes which can be used to make covalent bond with the fabric, Disperse dye can be used to make a deep penetration in the fabric, Vat dyes and direct dyes can be used to make a overlapping with the fabric.

Process Involved in Dying

Following are the steps involved in dyeing the fabric

1. Singeing

It is the first step involved in the dying process which is used to remove protruding fibers from the fabrics.

2. De –Sizing

After removing the scam from the fabric, temperature is given to the fabric to remove the size for uniform dyeing (over dry). This process is used to save the fabric from shrinkage.

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Strategic Business Units of Naveena Exports Limited

3. Scouring

Scouring is the step used in the dying process for removing the added and natural impurities from the fabric.

4. Detergents

Detergents are being used to remove soil and keep it suspended in Water. So they don’t penetrate again in the fabric.

5. Bleaching

Again bleaching powder is being used to remove the stains and other dirt material from the fabric or yarn which may remain on the fabric.

6. Removing of color

Yarn is usually of off white color when in neutral state. But in some cases some dirt particles or added impurities are there which change its color. For making it neutral and removing the color from it bleaching powder or liquid bleach is usually used.

7. Length & Fineness of fiber

After getting the equal lengths and fine fibers, cutting of yarn is being done. Here the process of Dying got completed.

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Strategic Business Units of Naveena Exports Limited

Naveena Denim
Denim and jeans are presently in voyage all over the world. The demand for all these products has been increasing widely. One thing is for sure that everybody love jeans and even the celebrities all around the world do have a huge collection of denim outfits as a part of their formal as well as informal wardrobe. But today denim garments are a far most exciting thing for the youngsters. Dozens of washes and hundreds of finishes set apart today’s denim garments. Looking back at the history of denim, it emerged during the last century in the form of canvas, and with the progress of time it developed into twills and drills, slowly leading to the birth of denim. Naveena Denim is involved in the manufacturing of denim fabric right from the yarn to the final product. A team of experienced and skillful staff supports their performance, whose continuous efforts and commitment towards excellence have made them proud to dive their name to reckon with worldwide. Over the years, Naveena has successfully maintained the product quality and its standards. For the betterment of their future through the customer satisfaction they have been complying with the time schedules and delivery deadlines. Capacity

Total Production Capacity
Lahore Unit Karachi Unit

32 million meters
16 million meters 16 million meters

Factory Area
Lahore Unit Karachi Unit 250,000 sq feet 400,000 sq feet

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Strategic Business Units of Naveena Exports Limited

Products

In Lahore as well as Karachi unit of Naveena, there is wide variety of products which can be manufactured. In these products some are modern while rests of them are based on classic techniques. 100% cotton denim De Slub denim Crosshatch stretch denim Poly Lycra denim Flat finish denim Over dyed denim Reversible denim Technical denim For manufacturing of desired denim, there can be used a wide variety of material in which some are of local made while rest of all are imported from the china, Thailand or Japan. Due to the export duties, the cost of manufacturing also got higher as compared to the local textile. The Fabric which is usually used is T-400 Trivera Reflax Raw Material required for Denim production

There are several steps are being involved in order to manufacturing of the denim. It started from the yarn and end at the final shape of the fabric which is called denim. Yarn

Quality output can only be achieved with high quality to begin with. That's why it is so important that the best quality yarn is selected to produce superior denim fabric. The QC Department checks all yarn samples to ensure it is void of any types of impurities. These are the main types of yarn which the Naveena is using for the purpose of knitting the fabric.

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Strategic Business Units of Naveena Exports Limited

Heather yarn

This yarn is the colored form of yarn. For the purpose of getting this yarn, cotton is dyed instead of yarn. The purpose or benefit of dyeing the cotton is that when cotton is dyed then the yarn color is stronger as compared to the dyed yarn. Dyed yarn

Like the Heather yarn, it is also a colored form of yarn but the difference is that in dyed yarn, the yarn is dyed instead of cotton. Slub yarn

The main difference in this yarn is that, the width of this yarn is not same all the way, some where it is slim and some where it is thick. PC yarn

PC yarn means the yarn which is formed with the combination of cotton and polyester. This is used for the purpose of flexibility in the fabric. Ecru yarn

It is one of the most common types of yarn which is used for the knitting of fabric. Almost 70 to 80 % fabric is knitted with this yarn. This yarn is the most economic type of yarn. Selection of Yarn Supplier

Whenever the company receives order for the Denim Garments, the company for the accomplishment of this purpose contacts with different spinning mills for the purchase of yarn. The purchase of the yarn is the duty of the Purchase Department of Naveena. The Purchase Officer responsible for the local purchase negotiates with the suppliers of yarn and selects the suitable supplier for the purchase of the yarn. Naveena Denim is nowadays purchasing yarn of different qualities at different prices from different local suppliers.

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Strategic Business Units of Naveena Exports Limited

Supply of Yarn

The following spinning mills are the major suppliers of yarn of Naveena Exports Limited which provide the quality yarn to the denim unit for further production. Nishat Textile Azgard Nine Crescent Mills Din spinning Sapphire Ejaz spinning Dewan Mills Hussain Mills Great care has been taken while going for selecting the proper supplier of yarn and a process is being adopted for yarn supply. Gate Security

From the spinning mill, the yarn is being loaded on the trucks to deliver it at Naveena Denim. The truck driver has to get the permission from the security guards to enter and to dispatch the yarn. Inward Gate Pass

The truck driver can enter the factory premises if he has the inward gate pass. This inward gate pass is being issued by the spinning mill to their driver as his identity. The security guard of Naveena confirms from the Purchase Department about the yarn order. If the Purchase Department confirms the order, then the supply of yarn is being allowed to dispatch into the factory premises. Yarn Store

Yarn store is the place where the yarn is being kept and further it is being sent into the production area for the formation of fabric.

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Strategic Business Units of Naveena Exports Limited

Purchase order & GRN

At the store gate, the supervisor also confirms the purchase order and after the confirmation, the store man assigns a lot number which is necessary for the identification of yarn. After assigning the lot number the yarn is unloaded and GRN is prepared. Production Process for Denim

There are several steps which are being involved from supply of the raw material to the manufacturing of the denim. After getting the supply from the supplier which is yarn, it passes through from several steps to make it refine and to get the require color and size of it. Rope Dyeing

Rope dyeing is a method in which hundred of yarns are bundled in a shape of rope and are soaked in a large bath. Later, they are pulled up and oxidized in the air; the process is repeated 8-9 times until the colour is fixed. Especially oxidation treatment is a key to sharpen the colour of Indigo and Black. The special feature of Rope Dyeing is that only the surface yarn is dyed where as inside of the yarn remains undyed. Therefore, faded effect like Vintage Denim look comes out. Sizing

Technology has been the greatest enabler of the view millennium. Naveena has invested heavily in high-tech and modern equipments. Their sizing is from Benninger Zell, Germany. These machines combine designs and deliver state-of-the-art fabric processing. Finishing

Finishing department is the last of the fabric process. The divisions have invested in equipment and know how that has been achieved over the years to deliver what their customers want. They have bought high tech finishing machine from Morrison USA with ample capacity for flat finishing processing.

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Strategic Business Units of Naveena Exports Limited

Quality control at Denim

Specimens are taken from each batch Roll and are tested to ensure that the physical standards are met and the shade is correct. If the customer requires any additional information, it is readily available. They have a Quality Laboratory where all physical and colour properties are verified. All data is sent to the customers along with the fabric. Rolls which do not meet expected values are rejected. Testing Parameter Testing Labs and Quality Assurance

ISO 9000 quality assurance systems are implemented at the laboratories of Naveena Denim. The laboratory is in the state of being certified by LEVIS. The following test can be performed. Certifications

Lycra (Manufacturing of Quality Fabric in compliance with Invista’s Quality Standards) Testex (Tested for Harmful Substances) Coolmax ( Manufacturing of Quality Fabric) Wrap ISO 9000 Recently, Naveena Exports Ltd has been certified with ISO 9001:2000 on July 9th 2008.

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Strategic Business Units of Naveena Exports Limited

Naveena Apparel Unit
Naveena exports limited have just entered in the field of apparel in year 2008-09. In spite of the new ones, it has a lot of orders not only dealing locally but at international as well. Naveena has excellent storage capacity for the storage of the fabric; it has the area of 4200 sq feet in which the apparel unit is currently working. And 1500 sq feet is solely used for the storage of the fabric and about 10 thousand meter fabric remain stored all the time so that productions don’t get disturb. Facilities

The wide range of facilities is available at the apparel unit which makes them an uninterrupted production. Storage

Instead of relying on single store, Naveena has rented out several stores outside the space of Naveena from where it has the storage capacity of 1.5 million meters of Fabrics. Beside this it owns the movable shelf from where it can store the textile for a longer time period. Store also owns the capacity for the storage of Buttons, needles, stitching material and other accessories. Cutting

Naveena has developed the fully automated stretchable table to provide enough and easy space for handling cutting and cutting related accessories. It also has the state of the art static spreader. Stitching

One of the major reasons behind the success story of Naveena is that it completely ignores the system of trial and error. Automated machines have solved the stitching problem and it gives the result with zero percent defects in stitching. Secondly, economies of scale have also helped the Naveena to save a lot of money which tend to reduce its cost.

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Strategic Business Units of Naveena Exports Limited

Wet Processing

A Naveena export limited has invested its best in the world best machines of washing and dying. For this purpose, heavy duty automated machines has been import from the Spain and eastern countries which make their product distinctive than the rest of the companies not only locally but internationally as well. Effects

The company has a wide range of experience in washing and dying and the worker at Naveena is able to perform all types of washing rather it is stone washing or blended color washing technique. Buttoning

As the company has invested much in the washing, dying and stitching, in the same way management don’t hesitate to invest in the finishing of the product. Instead of using the traditional manual type of buttoning, Naveena has imported the Italian machine for buttoning which provisionally buttons the fabrics. Pressing

Automatic topper pressers as well as automatic body pressers with the manual as well as automatic machines are used by the Naveena for pressing purpose. Finishing

Naveena has the most modern automatic machines for washing and dying which can act on different temperature as well as at different conditions. Company give great attention towards the finishing of the product and utmost priority of the management is to make the finished product a quality product so that it may not cause loss for the company or as the customer end as well.

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Strategic Business Units of Naveena Exports Limited

Naveena Vehicle Tracking System
One of the totally different product lines which Naveena group has been adopted is the high profile technology based vehicle tracking system called V track. It is relatively new business in which Naveena is just got entered. A vehicle tracking system is an electronic device installed in a vehicle to enable the owner or a third party to track the vehicle's location. Most modern vehicle tracking systems use Global Positioning System (GPS) modules for accurate location of the vehicle. Many systems also combine a communications component such as cellular or satellite transmitters to communicate the vehicle’s location to a remote user. Vehicle information can be viewed on electronic maps via the Internet or specialized software. Tracking Technologies

Naveena V-track system owns several types of vehicle tracking devices . Typically they are classified as "Passive" and "Active". Passive

"Passive" devices store GPS location, speed, heading and sometimes a trigger event such as key on/off, door open/closed. Once the vehicle returns to a predetermined point, the device is removed and the data downloaded to a computer for evaluation. Passive systems include auto download type that transfer data via wireless download. Active

"Active" devices also collect the same information but usually transmit the data in real-time via cellular or satellite networks to a computer or data center for evaluation.

V-track system by Naveena group used both type of devices combine both active and passive tracking abilities: when cellular network is available and a tracking device is connected it transmits data to a server; when network is not available the device stores data in internal memory and will transmit stored data to the server later when the network becomes available again. Beside this it also depends on the demand of the customer what type of services he/she is being required.

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Strategic Business Units of Naveena Exports Limited

Major markets Vehicle tracking is providing following services to its customers. Stolen Vehicle Recovery: Both consumer and commercial vehicles can be outfitted with RF or GPS units to allow police to do tracking and recovery. In the case of LoJack, the police can activate the tracking unit in the vehicle directly and follow tracking signals. Asset Tracking: Companies needing to track valuable assets for insurance or other monitoring purposes can now plot the real-time asset location on a map and closely monitor movement and operating status. Trailer Tracking: Haulage and Logistics companies often operate Lorries with detachable load carrying units. The part of the vehicle that drives the load is know as the cab and the load carrying unit is known as the trailer. There are different types of trailer used for different applications, e.g., flat bed, refrigerated, curtain sider, box container. Law enforcement or surveillance: A tracker may be hidden on a vehicle to follow the vehicle's movements without the driver's knowledge. Homeland Security: A tracking device can be used to monitor and control vehicles to improve Homeland Security. This may be in the form of tracking all vehicles in a country, or tracking specific cargoes to ensure safe transit to their destination. Transit Tracking: This is the temporary tracking of assets or cargoes from one point to another. Users will ensure that the assets do not stop on route or do a U-Turn in order to ensure the security of the assets.

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Strategic Business Units Analysis

Analysis of Naveena Exports Limited

SBU’s Analysis
Naveena Group has different strategic business units and management at Naveena is well aware that how to use these units strategically. In order to fully analyze the business units of Naveena that are dying, denim, knitting and apparel, I have used different analysis which not only give the true picture of the company’s different unit but it also gives the depiction of the overall industry analysis in which company is currently working. There are four types of Analysis which I have performed in order to explore the working of the organization. Industry Analysis PEST Analysis BCG Matrix Analysis SWOT Analysis All these analysis have been performed by getting data from real time industry situation as well as the organization. Research articles, news articles, internship reports, manuals are being used in order to effectively analyze the working of the organization. The historical data for the analysis has been taken or maximum 5-7 years back while current data till the august 2009 has been used. Due to lack of availability of financial reports I unable to perform the financial analysis of this organization however revenue as well as cost has be mentioned by available data on websites and other company’s documents.

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Analysis of Naveena Exports Limited

Industry Analysis
According to the “ECONOMIST” intelligence report of August 2003 for Pakistan the following observations have been made: Despite Government efforts to diversify exports and widen the industrial base, the industrial sector remains dominated by the Textile sector. Textile Sector still represents 46% of total manufacturing and provides 68% of Pakistan’s Export receipts. The strong performance stemmed from two factors: 1. Increase in import quotas especially by USA, EU and TURKEY 2. Textile industry has invested over US$1.5 billions in new technologies and modernization in the last 3 years. Efficiency and the innovation in textile is the only hope to get the country out of economic problems. Beside this economic crisis, textile industry is the only industry which is still a source of revenue for the country. Present status of Textile sector in Pakistan

Though the textile sector of Pakistan is well developed while in textile our country is lacking behind in Textile Engineering Sector, this particular part of the textile sector is underdeveloped and under utilized. Mostly it caters in the form of spares, components for modernization and machines used in cottage or small scale industries. A cursory look at the structure of Pakistan Textile Industry shows that most of them are cottage industry, small/medium industrial units and few large integrated states of art units. The number of units which fall under each category varies from sub-sector to sub-sector. Similarly the Textile Engineering Units also vary from small, medium and large in size. The Textile Engineering Industry comprises approximately 80% small work shops, 15% medium engineering Units and 5% large Engineering Units. It will not be out place to mention that the large engineering units are in Public Sector.. On the basis of initial survey of Textile Engineering Units (Not complete yet), approximately 500 units are engaged all over Pakistan, employing approximately 50000 work force which is mostly skilled. Even under the present conditions and without any support, Pakistan Textile Engineering Industry is providing import substitution worth around one billion US dollars. This sector also exports to small and medium Textile Units in Bangladesh, Iran, Sri Lanka, etc. Naveena Exports Limited 32

Analysis of Naveena Exports Limited

Competition The present Textile Engineering Industry is up against competition from smuggled, under invoiced and mis-declared components, parts and accessories. For example, in case of second hand machinery, there is little or no check and the competition mainly rests on lower price. Machines smuggled especially from China, India, Taiwan are not better in quality but are selling cheaper. A bold initiative is needed which can boost the production as capacity and markets are there, only change in environment is need. However if we look at the Naveena, Naveena owns the stat of the art machinery which is imported from the Italy and Japan it definitely gives the competitive advantage on its competitors. Due to globalization, there has become a price war between the local competitors also. The textile industries are focusing more on succession planning to get success in future. They are investing in the Research and Development sectors to cut down the costs and to produce a high quality product. Besides this, Naveena has to face competition from: Strong local market New entrants in international market Competition from existing customers Economic recession Taxation changes Before the current time period in the age of year 1999-2006, the whole industry was in good position in Pakistan and the exports was tremendously improving, international buyers were moving towards the Pakistan as due to availability of quality product on a cheaper rate but after the year 2007, scenario got change and due to a lot of factors Pakistan fail to face the competition from the globalized textile units and resultantly units like Naveena faces huge losses.

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Analysis of Naveena Exports Limited

Strong Local Market Competition

From strong local market the competition has been arising from few companies. These companies are well renowned not only locally but also internationally. In these local companies, Naveena has been facing competition at different fields like in some cases, knitting and in local market in dying and same is the case with the apparel. The Major competitors are Masood Textile Mills

Till the year 2004-05 Naveena export was far ahead in the knitting production and export but after that Masood textile develops itself in a very affective way and now it is giving very tough competition to the Naveena. Nichat Mills

Nichat mills, producers as well as supplier of yarn to the Naveena exporter giving tough competition in the apparel manufacturing.

Crescent Bahuman

A well reputed name in the apparel industry having a very well name in the manufacturing of textile, it is also working internationally and Pakistan’s largest exporter of apparel to Europe and US. The trading volume of crescent bahumal in last year was more than $50 million and the production capacity is continuously rising. Gul Ahmed Textile

Gul Ahmed is the renowned name not only locally but internationally. Now the Gul Ahmed comes up with its strong brand name in women dresses Idea, beside this it is also moving internationally.

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Analysis of Naveena Exports Limited

Entrants from International Market

As Naveena is doing most of its business international, so international market competition is quite tough and in fact in international competition exists at country level rather than at companies’ level. As the Naveena is the major textile exporter is the US and European countries, threats of new entrants through out the globe are quite high. The major threatening countries are China

China’s policy of producing in bulk is doing a lot all over the world and china is the world’s largest exporter of the textile products not only to Europe and US but to Middle East as well. Pakistan is facing a lot of direct as well as indirect competition from china. India

India is also an emerging economy, though in quality production of textile India is far behind than Pakistan but still it is going ahead in the field of massive production as well as on time delivery and fulfillment of order issue, it is also competing on cost. Srilanka

Srilanka is also the textile manufacturer as well as the exporter, the industry in Srilanka is flourishing in field of apparels and in near future Pakistan may get a strong competition from this country. Bangladesh

Natural condition of Bangladesh is much favorable for the raw material production as well as the industrialization also got started in Bangladesh which will give a competition to Pakistan as well as to India in the upcoming years.

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Analysis of Naveena Exports Limited

Competition from Existing Customers

One of the threats which Naveena is facing is the competition from the existing customers. At locally and internationally Naveena also act as a supplier for the raw material or in some cases provide certain services to the companies like knitting, dying, stitching etc. Now some of these customers has developed there own capacity which is being utilized not only to fulfill their own need but also started providing services to the other. This can be a great threat for the company. Economic Recession

As it is a period of recession and throughout the globe world is suffering from the economic crisis. In such scenario, affect on textile industry is a natural phenomenon. As the major sufferers of this economic crisis are US and other western countries and in case of Naveena the major part of their exports go towards US and Europe, economic crisis in those countries causes the Naveena to certain blockage of sales. Resultantly company started suffering from losses. That was the reason company have to shutdown two of its units i.e. knitting and dying. Taxation Change

Change in the taxation policies of Naveena has also causes troubles for textile industry throughout the country. Till the age of 2004-2005 there was a massive growth and in textile business through out the world were booming but later in the age of 2006-07 government revived its taxation policies which cause a great trouble thorough out the textile mills. Companies were unable to control their costs that’s why in international market Pakistan looses its control and other rivalry countries like china, Thailand, India, Bangladesh got in the market.

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Analysis of Naveena Exports Limited

Boston Consulting Group Matrix
The BCG matrix measures market attractiveness by market growth rate and it assesses the firm’s ability to compete by its relative market share. The BCG matrix assumes the causal relationship between market share and profitability. The four different SBUs according to Boston Consulting groups are Star Question mark Cash cow Dogs

Apparel Unit Woven High

V-track

Growth Rate Denim Unit Knitting unit Dying Unit

Low

High

Market Share

Low

Stars

Naveena Apparel unit falls into the category of Stars. It generates large amount of cash because of its strong relative market share, but also consume large amounts of cash because of its high growth rate; therefore the cash in each direction approximately nets out. However companies usually invest in star units as they are feeling that the future of their company depends on the success or failure of that particular unit or product.

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Analysis of Naveena Exports Limited

Cash Cow

If Naveena Apparel unit could maintain its large market share, it will become a Cash Cow when the market growth rate would decline. The portfolio of a diversified company always should have stars that will become the next cash cows and ensure future cash generation. Typically needs this cash to support its rapid and significant growth. It generates large amounts of cash for the organization and usually segments in which management can make additional investments and earn attractive returns. In case of Naveena Exports limited, the denim unit is a cash cow for the company which earns a lot of cash for the company and company utilize this cash to run its future units like apparel and woven units.

Question Mark

According to Boston consulting group matrix, a question mark is such a business unit about which you are not about the success or failure. The unit can be very successful in the market or it can be simply being ruined of. In case of Naveena the question mark is actually the Naveena V-track a high profile technology based system. It’s just in starting phase and not earning much. Management has adopted the wait and sees policy about this unit and has not yet decided about the future of V-track.

Dog

Naveena Knitting and Dyeing fall into the category of Dog, because they have low market share due to which this unit was consuming large amounts of cash instead of generating the cash and the management has already taken the decision to dissolve it. It was also uncertain for the management whether they should invest more cash in Knitting Unit to gain a larger share of the market or deemphasize this. So, at last the management decided to liquidate Naveena Knitting and Dyeing as it was unable for the unit to become the market leader and so, could not turn its question mark into a star due to financial crisis at national and international level.

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Analysis of Naveena Exports Limited

PEST Analysis
PEST analysis is the analysis which we tend to perform in order to analyze the external as well as the internal environment in which organization is currently working. PEST analysis revolves around the four things. Political Environment Economic Environment Social Environment Technological Environment Political Factors

There is not only the national politics involved in the working of the Naveena but international political environment has a direct influence on the working of the organization. The changes in political government causes to change the priorities got change and it directly affects the policies, resultantly it has a major impact on the organizations of that particular industry. There are many factors, which entice the organization with Government. Tax policy Rebate Quota Industrial policy of Government in term of garments manufacturer Subsidies from Government Labor policy These are the general affects which can have an impact on any industry with the changing in government or political parties. More specifically in textile sector the changing government induce badly to the companies working in that particular industry some of the major impact which due to change in political forces happen are as follows. Minimum Wage Laws Minimum wage is constantly increasing and all organizations are expected to abide by the rules laid out by the Government. Previously the minimum wage was Rs.4000 and now the Government of Pakistan has increased this amount to Rs.6000. This law has been implemented from July 2008 onwards.

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Analysis of Naveena Exports Limited

International Policies Due to international recession, the Government policies of US and European countries are constantly becoming rigid towards the third word countries like Pakistan, India, Bangladesh and this rigidity of policies causes the change in rate and tariff and increases it to several times. Lock of Interest of Local Government Lack of Government support causes a disappointment in the industrialist as well as in the investors mind. For example, no subsidies are being provided by the Government to the textile sector, huge amount of taxes are being implemented, unavailability of basic resources to run the production processes.

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Analysis of Naveena Exports Limited

Economic Factors

No doubt that it is the period of recession and about the entire industrial sector got affected from it and in this case declining period of textile sector is a natural phenomenon. Economic scenario in Pakistan and all over the word has several affect on the textile sector some of them are. Economic Recession Pakistan has a mixed economy where there is both capitalism and communism prevailing so the Government intervention in the textile sector is not on the positive side. The government is not providing any kind of incentives nor subsides. It is constantly levying heavy taxes and quotas. In the crisis of power faced by the country, the textile sector has suffered a lot. The Government did not provide any incentive to the industrial sector in such a time. The textile industries privately arranged their power generators in such an inflationary period. This has increased their expenses too much that they are now unable to run their processes. Naveena has been one of the targets of such policies also. Due to this, the company has faced an economic recession and has closed its units. Pricing of Raw Material Due to increased global demand of cotton, the production of cotton and other fibers is decreasing and this in turn is constantly increasing the price of Cotton. The rising price of cotton has increased the prices of Yarn too much. Yarn is the basic thing for the production of Denim and other apparels. Naveena is recently facing this crisis of higher prices of yarn which has deteriorated their financial condition too much that all the Dyeing and Knitting units have been closed. Oil Prices Increase in Oil prices and Yarn prices have caused inflation and Naveena’s Knitting and Dyeing units have faced recession period. Whereas, the Denim unit is recovering from recession and is entering into a new phase of recovery due to an increase in demand of Jeans and its apparel in international market.

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Analysis of Naveena Exports Limited

Southeast Asia Impact Bangladesh is becoming one of the biggest competitors in Knitting (T-shirts), which is another threat to all the knitting industries of Pakistan. Bangladesh is having skilled labour at low prices and their Government is also providing them full support. Whereas, Naveena was not having any advantage from the Government as well as the increase in wages again proved to be a threat to their financial condition. There is an increase in the purchasing power of consumers as now cheaper clothes are being imported from the China, Taiwan and India. Devaluation of Currency The strength of the Pound sterling as well as the higher cost of imported raw materials have really made a bad impact on the Pakistan economy in this case selling cost is not aligned with the production cost and companies are not earning as much as much they are invested in there.

Social Factors Due to increase in education and technological sector, the buying power of the customers is increasing at a speedy rate. They are becoming aware about the brands and latest fashions. Due to this, they are demanding high fashion at a low price in international market and so the fashion trends are changing at a very fast pace. For this purpose, Naveena’s goal is to provide latest fashion trends with continuous improvement in fabric.

Besides this, the population of youngsters in foreign countries is increasing day by day and they are demanding latest trends at large quantity and styles. For this, Naveena has to produce garments in bulk quantity by decreasing the rejection rate. To achieve greater quantity, they have to opt for latest machinery and skilled staff to produce more and more to fulfill the demands of the international buyers. People are becoming health conscious also and it’s necessary to focus on the welfare of the employees by providing them a neat clean and a healthy environment to work in. It is also mandatory for the company to educate and inform people living near the industrial areas about the environment. They should keep the environment non hazardous.

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Analysis of Naveena Exports Limited

Technological Factors

Technology is also a key sector in term of external environment for garments industry. The technology is working as a substitute for man power with more efficiency. The industrialist has a solid point that it can save cost in terms of  

Error reduction Less labor cost

In order to compete internationally the organization must have to depend on new and advanced technology. Although the technology, which NAVEENA was using currently, was not very low but there is no end in business.

Government subsidies Government has taken initiative to encourage textile industrialists to install latest machinery so as to introduce efficiency in work. As, textile sector is the biggest contributor in the economy of Pakistan, the Government has planned to spend on research and development sector for this purpose. But yet, nothing has been done exactly due to power crisis and inflation in the country.

Focusing on Latest Machines Naveena was using latest technology in the Knitting and Dyeing units and it is importing all the latest machinery and equipments from Korea for the production of Denim. So, in textile sector trends are changing and entrepreneur are moving towards the use of latest machinery which will surely help to enhance the production capacity as well as will be beneficial for increasing quality.

Naveena has always equipped itself with the latest technology as soon as possible. Even now, Naveena has imported new machinery for its new Denim unit Lahore. The transfer rate of technology in Karachi units has been higher than the Lahore units. Naveena is an export company and for this purpose it has faced an immense competition. But unfortunately, higher oil prices and its scarce availability in the country have created loads of hurdles for the company in the coming days for its other units also.

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Analysis of Naveena Exports Limited

Use of IT in Management Information System It can be observed that there is an increase in internet use and mobile technology at international level but Naveena is still not able to communicate efficiently with its foreign buyers through internet. The obsolete office equipment and the poor availability of the internet connection are suffering their orders. Naveena’s Management Information System (MIS) Department is not competitive enough to upgrade its website contents also. They do not have the facility of mobile communication system. They are just dealing through online service by either emails or through telephone calls. But in this competitive and global environment they need to move to mobile communication to attain growth in E-Commerce.

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Analysis of Naveena Exports Limited

SWOT Analysis
Strengths The internal Strength of the company which its own in the form of human resource, technology, brand name can be a major reason for its success in this highly competitive environment. Strong and Prominent International Image

Naveena exports limited is a well known and a well established company in the textile sector. Naveena has set up different contacts with the international buyers over the years and this clearly is strength for this company. That it is not easy for a company to come and straight away make a reputation and gain immediate attention of the buyers or customers, it takes time and Naveena has taken a long time to make itself a stronger company by adopting successfully retained its old customers but has also grabbed the attention of other prominent brands international standards in its products and processes. The Company has not only. Latest Technology

This is a very vital aspect of Naveena’s success in the export of textile products such as Denim. They are using the latest machinery and equipments in their production. The Denim unit is well equipped with latest technology equipments from USA, Belgium, Germany and Taiwan thus making Naveena a strong hub for quality product making. Now the new unit of Naveena Denim is being equipped with the latest facilities and the state of the art machines, which would make it possible to produce 2.7 Million meters of denim fabric daily. This is certainly not possible without latest techniques of production. Competitive Workforce

Naveena is fortunate to have experienced and well qualified employees in all of its production and service departments. Production departments have hired well experienced staff that is specialized in their work. For example the technical manger and production manager have experience of over twenty five years which not only make them specialize in their work but also make them loyal to the company. In the same way, the service departments have people with Masters Degree from well reputed universities and colleges.

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Analysis of Naveena Exports Limited

Variety of Products

To compete in International Market by retaining their potential customers, Naveena is producing a wide range of garments for gents, ladies and children. Denim unit is producing 400 different types of denim fabric in different colors. Latest equipments have been installed to achieve this level. The Knitting and Dyeing units which have been closed now were also equipped with the latest machinery to produce export quality fabric. Creativity and Innovation

Naveena understands and realizes that the door to success lies in the new ideas so for this purpose they have always encouraged creativity and innovation by adopting the scientific management system. MIS Department was being set up independently and was authorized to convert the manual store system and production processes into automatic system to speed up the work. Research and Development Department for every unit was also established to promote innovation through continuous improvement. Management Information System

The computerized systems and soft wares have enabled the company to have a strong check and balance system at every level. From the purchase of a material to the shipping of final product, the complete transparency is made through strong check and balance system. For that purpose MIS department has contributed a lot and an ERP (Enterprise Resource Planning) system had been implemented along with an internal computerized

communication system by installing intercom machines and telephone facilities at all working places of the company. Pay Roll department is also having computerized systems which automatically track the daily entry and exit timings of employees through card reader machines. ISO Certified Company

Naveena has recently been certified with ISO 9001:2000. This shows that the company has successfully achieved the International Standards in its products processes and quality systems. This is again an advantage for the company because some foreign buyers prefer to buy the products only from the ISO Certified.

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Analysis of Naveena Exports Limited

Diversified environment

Naveena has a diverse group of employees in the organization which gives all the managerial and management staff an opportunity to compete and learn by managing their work activities. People from different cities of Pakistan are working in this organization. Naveena has always encouraged people from different backgrounds and areas to come and show up their talents. Locally Working

The cutting, stitching and finishing of the fabric is done at commercial level also. This not only portrays a better image of the company at local level but also it is a source of money. The non-exempt employees of the company who are entitled to work overtime can work and earn in this way.

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Analysis of Naveena Exports Limited

Weaknesses There are some fields in which company is lacking behind in this highly competitive environment. The weaknesses of the company are Individualism

Naveena is best for those people who can work individually rather in team work. Managerial level people involving Assistant Managers, Officers etc. can have a better work opportunity as these level employees need to work and prefer to work individually. The managerial level employees are mostly given the tasks that they have to do independently but on ground they have to work in their teams. So lack of practices towards team work causes the failure. Production capacity

The production capacity of Naveena Unit Lahore is lower than the production capacity of Karachi unit. The major reason is the limited production area and less storage space. Lack of Training and Development

Training and development is an important aspect of an employee’s daily working. At times, in Naveena the new employees are not given the proper training. For example, the new staff at Accounts and finance department was not given the required and proper training for the usage of accounting software Oracle Financial, due to which they were hesitant to use that program. As a result the efficiency of work was reduced. The major problem of ineffective training was that the training needs were not identified properly and so it could not develop the skills of the employees. Similarly, the training sessions are conducted very often which was again a bad sign. Naveena should first of all train their trainers about the identification of training needs and their assessment and later they should be regular in conducting the sessions for the trainees to modify the skills of the fresh candidates to increase the efficiency of work and the confidence of the employees. Boredom Office Environment

The employees have not been provided with the latest and upgraded system to work with. They have to work with the obsolete equipments which not only decrease their work efficiency but also frustrate them. In this way, they spend too much time on small tasks and waste their energy in worthless tasks. Naveena Exports Limited 48

Analysis of Naveena Exports Limited

Lack of Culture of Intrinsic Reward

One of the biggest flaws that employees complain about is that their efforts are not being appreciated and rewarded. This is the most depressing thing about the organization that lower downs the morale of the employees. It has been observed that the employees are given tasks one by one but they are not being recognized for this. The bosses do not spare them for some time neither have a talk with them regarding the completion of their tasks. Lack of team work

Naveena lacks team work at managerial level. Group tasks are not given to the employees rather they are assigned individual work load. It has been observed that the Assistant Human Resource Manager of Knitting do not help or share the work load with the Assistant Human Resource Manager Denim or Dyeing. The HR Department of Naveena shares the same office place but they are unaware about the work activities of each other whereas, they are using the same Oracle software for the data retrieval, they have same designations, have the same responsibilities. This has kept a distance between the employees and they do not feel comfortable with each other. Lack of continuity of Policies

Naveena has made a full fledge Human Resource Manual, which is being followed at workers’ level and they are not being favored in any case. But at the same time, all the policies and procedures become vague for the managerial and management staff. This again lower down the morale of the workers’ and they feel discrimination. This not only affects the image of the company but also shows favoritism and relaxation for the upper level staff only. While in actual an organization is a group of people working together without any kind of discrimination on the basis of same ground. Company should compensate its competitive and hardworking employees to keep them motivating. Too much Specialized Jobs

Naveena’s mostly employees are bore of their jobs and they feel that they have become frustrated by doing the same old tasks again and again. There is no concept of job enrichment in Naveena, rather there is only the concept of job enlargement which in return creates burden for the employees and puts a negative affect on all of them.

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Analysis of Naveena Exports Limited

Opportunities Naveena and other organization like Naveena has a lot of opportunities, if it properly utilize these opportunities than it will be the top most organization. New Emerging Markets

Naveena gives opportunity to those people especially who have the ability to work individually. The organizational culture in Naveena is based upon individuality that has made the employees to work in their own direction by not involving in group tasks. So, the people who work with full honesty and commitment can achieve greater levels of success and appreciation. Bright Local Market

Naveena is currently working as an exporter for US and other European countries. It is not currently working on the local market which is also a bright market. People trends are changing and are moving towards brands. There are very successful brands which are currently working at local level. In these local textile brands are Gul Ahmed Chenone Saphire polo So, Naveena should also thinking to go for such opportunities if it really wants to compete with in this highly competitive environment. New Textile Policies 2009

New textile policy which is being announced in August 2009, textile association has welcomed this policies in which special discounted loan have been announced for the textile mills. Same subsidies have been given on raw material and on other accessories for the production of textile as well as for finished goods. This will open new horizons for the textile association for increasing their trade in Middle East and other Arab countries beside this US and European countries.

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Analysis of Naveena Exports Limited

Threats Beside these opportunities which Naveena and other organization working in Pakistan have, they have also face a lot of threats while working in the Pakistan. Non-supportive government

There have always been risks involved in the textile sector of Pakistan and so Naveena has to face the same threats. Changing Government policies and inflation in the country is creating problems in the production of garment. Naveena has to put out itself from every crisis without any Government help. Even in the power crisis the Government is not providing any favor to textile sector to run their business. The company has to arrange private energy sources to keep themselves alive in the near future which would cost them a lot. Government Policies

The entry of strong competitors in international market like China and Taiwan, there is a possibility that the Naveena could loose its market share in if it not lower its price. These countries have stride at a rapid pace over a few years and many of the international contracts are going from Pakistan to these two countries. They are offering far less price with huge amount of creative designs due to which the buyer is somewhat attracted. It’s a threat in the long run. Unpredictable Forex Rate

This is another threat in the near future as well as at present time because the currency of sterling pound and dollar is increasing at a very fast pace and it would again affect the price of Pakistani products. Firstly the raw materials and other machinery is being bought at higher rates and then the products are being sold at lower prices which has created a huge gap between buying and selling of things.

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Analysis of Naveena Exports Limited

Growing Competition

Due to globalization, there has become a price war between the local competitors also. The textile industries are focusing more on succession planning to get success in future. They are investing in the Research and Development sectors to cut down the costs and to produce a high quality product. Political uncertainties

The political situation of the country is quite unstable this causes to loose the confidence of the investors. Local as well as foreign investor hesitates to invest in the country. Beside this political situation of the country, changing in the government causes a lot of problems like Late deliveries Higher lead time Instability of Political policies Changes in taxes and tariff These few and many other political threats are faced by the textile industries all over the country and getting affected of Naveena is a natural phenomenon. Free Trade Agreements

There are a number of reservations about free trade agreement of textile companies working in Pakistan. The cost of production of neighboring countries is much lesser than the Pakistan and this create a hurdle for Pakistani entrepreneur to survive in international arena.

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Departments and their Working

Departments of Naveena Exports Limited

Departments of Naveena Group
As I have discussed earlier that Naveena group is a corporation having different business unit and each business unit has its individual working. Each unit has its own different departments which are responsible for the working on behalf of the management. The departments which are of strategic importance for Naveena Exports limited are Human Resource Department Merchandising Department Finance Department MIS Department Export Department Production, Planning and Control Department Quality Assurance department All these departments are of strategic importance and work cross functionally, the working of one department affect the working of the other department and in this way the whole corporation work. On broadly basis the Naveena has been divided on two grounds i.e. services departments and production department. In services department, there are four further departments that are services and compliance department, admin department, human resource department, MIS department. While in production department, there are further lists of department which are usually there to support the production of the organization. In production wing the important departments are merchandising department which is responsible for selling of the production, production planning and control department which is responsible for planning of the production and the raw material as well. Quality assurance department is also there to ensure the quality of fabric. Purchase department is there to ensure to provide the accessories for the production like fabric, buttons, stitching material, zips etc. For international client export department is there which ensures the international boarder policies are being followed by the organization and the violation of these policies are not being done. In this way, the whole corporation work. In my further discussion I will briefly explain all of these departments.

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Departments of Naveena Exports Limited

Human Resource Department
Naveena is one of the leading manufacturing units in Pakistan that has a large number of employees. Keeping in view the present trend in the field of Management as well as the requirement of the quality certification organization Naveena separately developed its human resource department which was working under admin department earlier. The Management at Naveena believes that it is very important for every organization to develop a world class Human Resource department to harness the skills and knowledge of their people to achieve excellence in product, procedures and quality systems. The Human Resource Department at Naveena has been formed at the end of 2006 to accomplish international quality standards at every level. The department is providing support to top level management in recruitment, selection, compensation as well as in the field of Training and Development. The functions which Human Resource department currently perform at Naveena Exports limited are Recruitment & Selection Compensation Management Training and Development Performance Appraisal As the major time period I have passed in Naveena was in human resource department so I have a lot of knowledge about this particular department of the company and in this report will give you a more detail look of this department as compared to the other departments. In broader view human resource department has not most modern practices which support this department in order to get its real objective. Management usually took this department as an expense and cost on the organization. In order to cope with this expense department, a lot of other responsibilities have also been allocated to this department which is actually not the responsibility of this department but the incumbents of HRD must be obeyed. For example a HR manager has nothing to do with payroll but at Naveena HRD and pay roll work cross functionally and provide support to the pay roll department as to decrease the burden from the payroll department.

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Departments of Naveena Exports Limited

Human Resource Department Philosophy

Naveena Group has formed HR department in recent years so as to provide a sound and competitive human capital. They believe that their HR would provide a core competency through training and development of new and untrained employees in a more efficient way. Human Resource department of Naveena exports limited has been developed to deal with the intellectual capital, emotional capital as well as the social capital. Intellectual Capital

Intellectual capital means to develop the specialized knowledge and skills in the employees by keeping in view the future needs of the organization. Emotional Capital

Training the employees particularly at managerial level for developing the future leadership in which the characteristics like self confidence, ambitious and courageous workforce need to be develop. Social Capital

HR department core philosophy is to develop such a workforce which has a long term relationship with the organization. Naveena believes on life time employment policy that’s why it awards benefit on the job as well as after the job i.e. retirement benefits.

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Departments of Naveena Exports Limited

HR Objectives Following are the objectives of Naveena’s Human Resource Department to accomplish its goals and to achieve core competency. Committed and Dedicated workforce Keeping in view the core philosophy of Naveena, the sole objective of the human resource department is to obtain, manage, develop, motivate and gain the commitment of employees or more technically speaking HR department of Naveena is focusing on the retaining of the employees rather than the hiring of the new ones. Beside this development of a positive corporate culture that promotes commitment to excellence and quality through out the company.

Training and Development Human Resource department is there to identifying the future as well as current training needs and provide the required training to all categories of employees. It focuses on the best utilization of the skills and knowledge of the employees in the organization.

Career development is the biggest issue which the employees are mostly face in the corporate sector, however Naveena exports limited has solve this problem.

Compliance with Labor Laws To ensure that the company meets its social and legal responsibilities towards its employees with particular regard to the conditions of employment, the quality of life at work and the need to promote environmental concerns and occupational health & safety. Beside this it is also the responsibility of human resource department is to ensure industrial peace and harmony through excellent employee relations to achieve optimum level of productivity and contribution towards the quality standards the company aims for. Record Bank for future Hiring HR Department maintains an application databank to facilitate the recruitment process and to fill in any immediate hiring needs. This databank is classified as education wise and job related. Naveena Exports Limited 57

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Functions of Human Resource Department

Human Resource department at Naveena Exports limited perform about all the important functions regarding the human resource. Usually the best of the practices are being used in the Naveena regarding the Human Resource. The major functions which are being performed in the Naveena group are Recruitment Selection Training and Development Performance appraisal Retaining and Rewarding Recruitment

Recruitment strategy of Naveena is to recruit a pool of experienced and qualified staff so as to select the best from them. There are two types of recruitment taking place in Naveena Internal Recruitment External Recruitment Internal Recruitment

All the employees can apply to any post within the Organization but they have to go through all the selection procedures. If an employee is Graduate and he has 4 years of internal work experience, then he would be equivalent to a post graduate with no experience. And if an employee has 2 years of external experience and 1 year of internal experience, then he is considered as 2 years of internal experience. External Recruitment

To rehire the employees for Worker to Assistant Manager Position, the concerned director would approve the application. While on the other end for managers and above positions, CEO would approve the applications for the hiring of the employees.

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Departments of Naveena Exports Limited

Recruitment Procedure

From recruitment to the selection, Human resource department need to perform a variety of steps in order to get the most suitable candidate which can fulfill the future need of the employer. From the job opening of a particular job to the final selection, the process of recruitment revolves around the three stake holders. Head of concerned department Manager Human Resource Supervisor of concerned department In order to make a suitable selection, initially the human resource department play its role and select the suitable candidate for the job opening and after that concerned HOD and supervisor take the decision. 1) The Head of Department (HOD) sends a completed Employment Requisition Form to HR along with special requirements. 2) HR invites and screens the applications and short list the candidates. 3) At least 5 applications for each post are recruited in order to select from the best possible talent available. 4) Naveena uses the following recruitment methods: a) Advertisements on notice boards of the Organization b) Advertisements in newspapers c) Advertisements on the Websites such as : i) www.rozee.com.pk

ii) www.mustakbil.com iii) Brightspyre.com d) Through Recruitment agencies e) Internship Programs f) Professional Organizations

g) Human Resource Consulting Firms like Talent Hunters

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Departments of Naveena Exports Limited

Selection

While going for selecting the suitable candidate, after gathering a large pool of candidate, different selection tools are being used by the Management. Test oral/written Interview *Medical examination *Verification of previous employment records Preferences and Qualification checking Employment Offer Probationary Progress Report

*Medical Examination is being carried out by the Doctor appointed by the organization. But in actual the medical test and verification of the documents do not take place in Naveena but it is written there in the selection procedure of Naveena Exports Limited. Test

Test can be written and oral in Naveena, usually test can be for the assistant manager and the supervisor level job. While for the job of Manager or HOD no such test is pre requisite. Interview

Interview can be panel interview having variety of questions included in it. In interview panel usually three stake holders are there which may include supervisor, Head of concerned department as well as the HR manager or assistant HR manager may be there for interview panel. In Interview usually following type of questions are being asked in the interview. Education, training and professional qualification Technical Competence Intellect level Work Experience Appearance, manner and personality

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At the level of first line manager usually Manager of concerned department as well as the Human Resource Manager was there in order to interview the candidate for suitable knowledge, skills and attitudes. In the interview session, the following questions may be asked from the supervisor or worker level job. Physical make-up Education Work Knowledge Experience General intelligence Personality Mental alertness HRD criteria for Selection

HRM marks against the above criteria by selecting the following appropriate option as each option carries five choices. Inadequate require development meets job requirement exceeds job requirement exceptional = = = = = Extremely not feasible Not Feasible Have skills Have more skills than needed Having skills but might be not feasible

On the basis of all these five criteria the decision for selection or rejection has been taken by the management or the interview panel who have to take the decision. Employment Offer

HR Department ensures that the pay scale as well as position is consistent with the organization’s salary structure. No such decisions have been taken by the selection panel which violates the history of the organization or it may have conflict with the rule written in human resource manual. In some extraordinary situation final decisions can only be of competent authority in which the CEO or directors may include.

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Probationary Period

Rather it is managerial level post or non managerial level post; probation period must be included there. Usually the probation period varies from 3 months to 6 months from assistant manger to HOD level jobs. The final decision of the acceptance of organization as permanent employee can only be taken by viewing the probationary report. In probationary report, following things must be considered by the manager or the HOD of concerned department for making the incumbent permanent. Regularity and Punctuality Volume and Accuracy of work compared to standards Cost, Waste and Time consciousness Drive, Urge and Energy to get things done Trustworthiness and Integrity Initiative and Responsibility Common Sense and Decision Making Effectiveness in getting along with others’ attitude towards subordinates peers and supervisors.

Following recommendations are given to the employee according to the above criteria by the Management Authority: May be promoted May be confirmed probation Training to continue To be terminated

During probation period, no leave is allowed. The employee is not bound by the company and can leave any time without informing. After completion of probationary period, the employee has to give one month notice before leaving and they can wave off for 15 days.

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Training and Development

Naveena believes that the training of employees not only polish their skills but also train them for their job requirements in a more effective way. For this purpose they train and develop their trainers first, so that they could identify the training needs and could develop the other employees for the better job performance, Training Need Identification form for a group of people has been attached in appendix 3, while for individuals TNA is attached in appendix 4. The training session of Trainers consist of 45 minutes. Currently Naveena is conducting an In House “On the Job” Training Session for its employees. Training Need Assessment (TNA) is being used by the organization to record the training needs, name of the employee, designation, department, unit and the date on which the training session was conducted. Both the trainer and the trainee sign this TNA form. Training is usually conducted at the worker level by their corresponding supervisor. It is one of the draw back in the policy of Naveena that no training is there for managerial level or advance level. However for workers following types of training can be conducted by proper analyzing the need for training. Job Description Quality Training Work Instructions Corrective Training Health and safety

The use of In House Trainers save up the cost which is again very beneficial for the company. The Duration of the training is 30 minutes and usually a supervisor under govern of HR manager train the workers in groups of 40-50. After this evaluation is being done by the manager that training gives the required result or not. It is worth noting that no doubt all these procedures are written in the HR manual but unfortunately, in real practice no such things are there.

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Departments of Naveena Exports Limited

Performance Appraisal

The performance appraisal system developed by the human resource department of Naveena Exports Limited is used for the helping of employees rather than judging the employees. The major focus of performance appraisal system is to Judge the work/behavior, not the person. The performance appraisal form for the employees is attached in appendix 5 at the end of this report. Naveena considers that an effective Performance Appraisal system is a positive and a constructive communication and presence of incumbent at the time of appraisal is absolutely necessary. Management of this organization believes that success of an organization is dependant upon the success of its employees. The growth of an organization is reflected in financial results and the financial gains can only be possible if employees perform well. The employees’ performance leads to the success or failure of the organization. The decision of success or failure on the job can be made on the basis of appraisal. It is a gauge to measure the level of success of employees. People want to know what is expected of them, how they fit into the organization and how well they have performed in carrying out their duties. It is strategically important as a development tool for coaching and counseling the employees for better performance. However, in order to achieve its intended objectives, the performance appraisal system should be fair, equitable, transparent and clearly relating to the requirements of the job. The process of performance appraisal must be as objective as possible, and must be carried out only by properly trained appraisers who are fully aware of the strategic importance of Performance Appraisal. Naveena’s performance appraisal system where it is beneficial for the organization on the other hand it is equally important for the employees as they can get a lot of benefit if they perform well in the organization. So, performance appraisal system is of strategic importance for the organization like, Provides incentive to improve by constructively pointing out an employee’s strengths and weaknesses Identifies training and development needs Identifies talent and growth potential to put it to most effective use Eliminates uneven standards of appraisal Steers the activities of employees by identifying goals and standards of performance

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Performance Appraisal Method

HR Department sends forms to the Head of Department (HOD) in the first week of the month in which the appraisal is due. Appraisals are conducted jointly. The Reporting Officer of an employee conducts the appraisal interview and fills out the form. Both reporting officer and employees sign the appraisal form. The employee may note any disagreements with the reporting officer about his/her performance on the form. The Heads of relevant Departments return the form to the HR Department within the next week. Criteria of Performance Appraisal The Performance Appraisal Criteria is much general but with the consensus of reporting officer as well as supervisor and incumbent following things need to be measure. At Naveena exports limited supervisor or immediate boss provide the relevant information regarding the incumbent. Following are the elements which need to be measure. Planning and Control Achievement of Targets Cost Consciousness Communication Skills Decision Making The above characteristics at job are graded as following and then on four point’s scale evaluation of the incumbent can be done.  Excellent  Outstanding  Good  Satisfactory

(4 points) (3 points) (2 points) (1 point)

Total Points achieved = (4 x _) + (3 x _) + (2 x _) + (1 x _) = _ / 60 Rating = Total Points Achieved _ / 60 (100 = _ %)

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Performance Criteria

After evaluation now the results are being compared with the standards and then employees are given the relevant grades. Excellent Outstanding Good Below Increment Rates 51-60 (85%-100%) 42-50 (70%-84%) 33-41 (55%-69%) 33 (55%-Less)

On the basis of performance appraisal results increment is being added in the gross salary of the employees this not only a thing of the encouragement for the job holder, but also it motivates other to work hard. Excellent Outstanding Good Below (20%) (15%) (10%) (05%)

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Rewards and other Benefits

One of the policies of human resource is to rewarding of such employees who work well in the organization this reward can be intrinsic or extrinsic. Intrinsic reward can be in form of recognition or certain non monetary benefits while in case of extrinsic financial benefits are being given to the employee who perform well in his/her job. There is some of the detail of rewarding for the employees who performs well through out the year or in certain quarter. A salary slip is attached in the appendix 6 of this report. Recognition

As I have discussed earlier that Human Resource at Naveena believes that both intrinsic as well as extrinsic rewards are necessary for the employees. In intrinsic rewards management at Naveena acknowledge the effort of the employees at Naveena. Employee of the Quarter

Previously, the policy of Naveena was to select its Employee of the Year from every department. Later, it changed this policy and replaced it with Employee of the Quarter. Criteria for Employee of the Quarter Punctuality/Regularity Number of Years of Service Performance at the end of that particular quarter For Punctuality 1 mark is rewarded whereas, for number of service years also 1 mark is rewarded. Quarters have been divided as: January to March April to June July to September October to December First, second and fourth quarters are for production department whereas; third quarter is for the services department. Rs.10, 000/- are being rewarded to Employee of the Quarter beside this the services of that employee is acknowledged in front of other which really help to motivate others to get the title.

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Non Financial Benefits

There are varieties of benefits which are non financial in nature. In which Hajj opportunity, recreational trips, annual dinners and conveys facility. Hajj Opportunity

The Organization sends one Permanent Employee from each unit to perform Hajj each year through sponsorship scheme. The Competent Authority may change the number of Employees being selected for this facility. Medically fit employees who have served the organization for 5 years or more and have never performed the Hajj are eligible. Employees are selected through a draw. The selected employee cannot offer a substitute. Trips and Recreational Facilities

Employees of Naveena can enjoy department trips arranged on the weekends and gazette holidays. Trip would only be possible when there would be a gazette holiday on the week days including Sunday. The trip would not be for more than 3 days. Transportation Facility

Naveena has provided the transportation facility for all the employees. Separate Transportation has also been provided for the women workers. Company Maintained Conveyance

The organization provides conveyance facilities and incurs all the charges relating to acquisition of the vehicle and its regularities and proper maintenance. Moreover, the fuel charges, maintenance charges and other charges relating to the running of vehicle are also borne by the organization. Health Care Insurance Plan

The organization provides a health care insurance to its employees through new jubilee insurance company. Any employee has completed his probation and his Naveena Exports Limited 68

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salary exceeds Rs.10, 000/- per month can get this benefit provided by the organization for himself, spouse and the kids. The 5% premium is borne by the organization and 50% premium is adjusted in 12 equal installments from his monthly salary. This health care plan is only for registered medical bed patient as per insurance policy and does not cover out door patient. Accidental Medical Coverage

If any employee or worker of the organization gets injured during the work, inside or outside the organization, than, he is entitled for medical care by the organization. The organization also entitles him/her with special leave approved by the CEO with full payment and all the benefits. Accidental Death Coverage

If an employee or worker of the organization expires while performing his/her duties for the company or during his tenure, he dies accidentally then the Naveena financially assists the family of the employee. Maternity Benefits

Special leave is entitled to women for about 6 weeks to 12 weeks before or after their delivery. The women can avail this leave with full salary including all benefits. Social Security

This policy is for the workers whose salary is less than Rs.10, 000/-. 6 percent of the salary would be paid by the employer. This amount would be paid to the worker at the time of retirement to provide education and marriage of their children, death and other grants. And currently Naveena is providing social security to its employees. EOBI (Employee Old Age Benefit)

Employees are provided with EOBI after the retirement to provide them the facility of pension. For this purpose, 5 percent is being contributed by the employer and 1 percent is being contributed by the employee. To avail this facility, the employee’s service should be at least 7 years and age should be 60 years. Naveena Exports Limited 69

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Financial Benefits Increment

Increment is given annually in Naveena The employees must complete their year of service in June then they would be eligible for the increment It has been implemented from 1st June The CEO reviews and approves the increment The marks obtained in performance appraisal are used for calculating the increment Advance salary

Employees can take the advance salary in 20th-25th of current month. Employee forwards the application to HR and admin department. Interest Free Loan

The company provides the interest free loan for 5 years to all of its employees. This facility can be availed at anytime duly approved by the CEO. Vehicle Loan Facility

The organization pays following relating to loan-based conveyance facility: 70% cost of vehicle 50% insurance charges 50% annual token charges Depreciation allowance @ 6.25% on reducing balance method for a period of four years, credited in his loan account. The Employee Pays 30% cost of the vehicle before purchase as down payment. Monthly installments. (Through salary as per repayment schedule) of the principle amount. 50% insurance charges. Registration charges of the vehicles. 50% annual token charges. Naveena Exports Limited 70

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After proper completion of loan facility (i.e. employees having paid all the installments), the vehicle is transferred by the organization in employee’s name. The transfer charges are borne by the organization. All the fuel and maintenance charges and any expenses relating to the vehicle are borne by the employee. However approval of CEO would be required for fuel and maintenance allowance. Employee, who avails car loan facility, will also be eligible for loan on account of CNG-kit installation. New car loan can only be applied after completing 4 years and full adjustments of previous loan.

Bonus

Announcements of bonus are sole discretion of CEO. Employees having completed at least one year service as on 31 December with the organization will be eligible for the bonus. A single bonus equals at the last drawn monthly gross pay of the employee.

Gratuity

Gratuity is paid to the employee at the time of leaving the organization or if in case his services are terminated for any reason other than misconduct. This has been implemented from January 2006. Previously, the company was giving two bonuses to its employees but after January 2006 one bonus and gratuity has been given. Gratuity is calculated by multiplying the Number of Service years by last drawn salary. Full gratuity is given to employees who have more than 3 years of service whereas, half gratuity or 15 days of gratuity is being given to employees who have less than 3 years of service. According to labor law, full gratuity should be given to every employee whether he has 1 year of service or more than 3 years of service but this is not being practiced at Naveena.

Attendance Allowance

Employees below the rank of general manager are entitled to get 2.5% of their salary if they remain present on all working days. The 2.5% amount is credited to their monthly salary. Naveena Exports Limited 71

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Punctuality Allowance

Employees below rank of HOD are entitled to get 2.5% of their salary if they swap their cards on time through out the month. The swapping in/out timings would be as under. Swap their cards before IN time Swap their cards after OUT time. The allowance is given after successful completion of probationary period. Leave Encashment

Employees and workers who do not avail any leave are entitled to get pay against that leave. Monetary Fund for Work above Defined Quality and Quantity

Respective HOD, HR Manager and Director Production will set performance standards and give productivity (quality and quantity) targets to departments at the start of each month. Departments surpassing the performance standards and monthly productivity targets would receive a specific amount as reward for their exceptional performance The amount of such reward would be at discretion of the CEO after review of each achievement.

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Human Resource Department Policies Disciplinary Procedures and Discontinuous of Job

An organization performs well only if its employees perform well. To achieve the desired standard of employee performance, it is imperative that the employees are imbued with a sense of belonging which, in turn, is directly dependent on job security the organization provides them. No doubt the best job security is the performance of person himself, yet the implementation of a fair, just and transparent policy has a great role to play, the aim of this policy is to evolve a system which would make the termination of the services of employees a just, fair and transparent hence acceptable to all. Employment may discontinue in any of the following modes: Termination of services Termination during the probationary period is possible without assigning any reason and without any notice. Retrenchment An employee can be retrenched on one-month notice or pay in lieu thereof if he or she becomes surplus due to any genuine reason. The reason has to be mentioned in the retrenched letter. Resignation. Discharge from service on medical grounds. Retirement on achieving the prescribed retirement age. Dismissal from service on being found guilty of misconduct in a domestic inquiry held in accordance with the provisions of law. Dismissal from service on being found guilty of harassing any death. Death Removal from employment is an extreme action which would be taken only when measures like guiding, grooming warning and minor punishments (fine, stopping of promotion/increment and suspension etc) have failed to produce the desired result.

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Quality Assurance Department

The purpose of quality assurance department is to provide the customers with quality, satisfactory and reliable testing services. The strategy is built around plan, do, check and act (PDCA), and is reflected in the Naveena’s quality oriented system. To achieve high quality standards, management is continuously investing in up gradation of skills, system and testing equipment. It also believes in training and team work for successful implementation of high quality standards. The slogan of the Naveena is to buy quality, make quality & sell quality. At Naveena, quality is first priority for getting customers satisfaction. It is cornerstone of the success today and tomorrow. The quality statement of Naveena which is pasted every where in organization is attached in appendix 7 of this report.

Quality Assurance The proactive quality assurance system at Naveena aims to get it right the first time by rectifying any discrepancies during the course of the process. All the steps involved during production are documented with continuous feedback into the production process allowing it to develop further.

The main component of quality assurance department is

Specifications of end product and its quality criteria Documented instructions and the methodology to be followed Performance analysis and recording system at every stage to minimize reliance on end-product testing

Quality is a combination of Skills, System & Equipment so and continuously investment in training our personnel, revising & improving our processes and systems and upgrading our testing equipments. Quality checks are made at every stage of the manufacturing process starting from raw yarn to delivery of final product.

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Departments of Naveena Exports Limited

Merchandising

Merchandising is a global process through which products are produced, sourced, and sold all over the world. Merchandisers must have leadership for the value chain (developing, distributing, and selling products) in a global market. Merchandisers need to see "the whole process" from product innovation through consumer satisfaction. This requires logical thought processes such as problem solving, decisionmaking, and resource management. It is a critical need for merchandisers at Naveena, which has strong business background, yet it also stays focused on fashion or other products that undergo continuous change in the consumer-driven market.

Objectives

Here, the merchandising department is mainly divided into accounts buyers. This shows that there is individual or a team of merchandising, who takes care of a specific buyer or account. Merchandising serves the following purposes at Naveena Gateway

It acts as a bridge between buyer and the company for communication. The success or failure of getting customer as well as successfully deliver the product depends upon the Merchandising department. Marketing

Merchandiser has to market his company in order to increase his customers and generate more and more revenue. It is the single department who are actually producing the revenue for the organization and rest of all the departments are used to spend the money. Costing

Merchandise makes a cost sheet to see if the product is feasible or not in terms of cost and revenue. Merchandiser has to calculate the cost of products including all wastes and accessories to tell the final cost of the product to his customers.

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Negotiation

Merchandiser must have a negotiating power on the price to convince his buyers on specific price to lessen the chances of loss. Sampling

Merchandiser must send the sample to his buyers for confirmation and satisfaction. At this stage, Sampling is also done to avoid loss. Information Management

As merchandiser has direct contact with his buyers so the buyers have to give information about their product’s requirements and if there is any problem the merchandiser has to inform his buyers in return. Implementation

It is the responsibility of merchandiser to prepare the product according to the requirement of buyer.

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Process of Merchandising

At Naveena Exports limited, the merchandisers are responsible for carrying out the merchandising activities, it is not a straight forward one step game rather it is a complete process which started from initial inquiry of the customer and end at the delivery of product. Initial Inquiry

An initial inquiry may be a simple fax describing briefly the target price and product or it may be detailed package from a buyer describing in detail. Initial Research & Development

Initial Research & Development or preliminary discussion is carried out with research and development department to see if the company has the capability to produce the product in terms of man and machines. Costing

Merchandise makes a cost sheet to see if the product is feasible or not in terms of cost and revenue. For this purpose a cost sheet is prepared, keeping in view the styling and accessories to be used on the product. Approval

After the cost sheet is prepared it is presented to the CEO or any other approving authority for approval. The approval is mainly granted keeping the profit in view. Merchandising process continues if a specific cost sheet is approved. Order Booking Status

Once an order is received it is mentioned in order booking status. OBS is extensively necessary to maintain the track of records, capacity optimization, and planning further through OBS strategic planning is also carried out. It helps in calculating cash in and out follow. OBS is normally kept confidentially and it is only accessible to predefine personal.

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Sampling

It is the complete process through which sampling approvals are taken. It starts from a proto sample and ends at shipment sample depending on the buyer as different buyer have different sampling requirements. Samples may be paid or free depending on the category, quantity, contract with the manufacturer. Information Management & Forwarding

All information received from the buyer is forwarded to the relevant department in the factory as to PPC package, checklist, accessories etc. information is provided which in terms is processed by the PPC and is forwarded to the relevant departments to start production. Buyer & Country Dependence

It is always better to establish an optimum buyer that dependence on the buyer be balanced so that just dependence on the buyer is also avoided and on the other hand dependence on too many buyer is also not recommended. Updating of OBS

OBS could Management Information System lead document in case it is not properly updated. Special checks need to be maintained for proper upgrading of the OBS ad if data on the OBS is incorrect capacity and management could be seriously affected.

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Departments of Naveena Exports Limited

Finance Department

Finance Department at Naveena Exports Limited is an active body of the organization having responsibility not only to provide the financial information about the company but also facilitate the worker in financial services internally in the organization. It works cross functionally in the organization with different departments. It also provides the up to date information regarding the financial position as well as a complete review of revenue and expenditures of the company. As Naveena is a private entity, so providing record of their financial assets is not obligatory on it. Functions of the Department

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

Coordination and facilitation for Business planning and budgeting function in the company and periodic reporting to the management and to the Board.

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

Maintenance of employees’ accounts/ investments and execution of payments and receipts.

Maintenance of accounts relating to loans taken by the employees or by the management on behalf of the company by the bank. It controls the working of the Offices under the provisions of Issue and Naveena Finance Department Manuals. It also deals with management of Revenue and expenditure, on the basis of previous data responsible for forecasting the budget for the company for upcoming years. Issuance of weekly Statement of Affairs as required under the Finance division manual, 2001, preparation of Profit and Loss Account and Balance Sheet on yearly basis, formulation of budget estimates of revenue and capital expenditure. Management of General Provident Fund and Provident Fund balances of all employees of the company.

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Departments of Naveena Exports Limited

Research and development
Research and development or R&D department is related with product development. It calibrates merchandising activities and forwards the fabrication information into the product library and gets the exact match. If there is required match, Documentation and Planning is done, March is developed and PD (product development) Plan is made by the PD center. If there is no exact match, Technical evaluation (Pricing), Documentation and Planning is carried out. Objectives

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

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

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

Quality Product Requisition (QPR) is made in Research and development department of Naveena Exports limited.

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

Through its proper planning research and development department is responsible for maintain as well as for Delivering of all types of samples with speed, accuracy, quality and competitive pricing.

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Departments of Naveena Exports Limited

Management Information System

Naveena Group has been the pacesetter in Pakistan by adopting scientific management techniques in the Textile Industry. For the purpose, an MIS department was established quite early on and given the same freedom to innovate as any skunk works unit. The MIS department has an in-house intellectual software development facility for delivering a powerful stack of technology and comprehensive pre-integrated enterprise business applications. These applications contain key functionality built specifically to enhance toplevel management's control over routine operations and to support their decisions. The following enterprise business applications have been integrated for better plant floor to boardroom management: Oracle E-Business Suite Group Level Financial Management System Human Resource / Payroll Management System (HRMS) Material Resource and Inventory Planning System (MRP) Integrated Manufacturing and Production Monitoring System (PMIS)

Besides business applications, all the individual production units have been linked up with the boardroom, through individual ERP modules: Denim ERP System Knitting ERP System Dying ERP System

All these three modules are integrated with intranet and a separate Management information system is there for providing it support on back end. Beside this now Naveena has make an agreement with the SAP (system Application program) which will provide their services in the finance department of the company.

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Departments of Naveena Exports Limited

Production planning and control

Production Planning and Control (PPC) is the nervous system of the organization and its basic task is to receive information from the merchandising department and link it to the production. It involves the Pre-Production Analysis to ensure quality and reproducibility. Monitoring is done for the whole production process and in this we check out the planning implementation. If the planning is failed, re-planning is done for that. Off- the- track and onthe- track planning is also done by the PPC. PPC works in collaborates with R&D department and also get the information from the cutting unit. In this Quality Plan specification, quality, width, weight, dyes, gauges and counts are mentioned. PPC receive Fabric Consumption Patterns from the Cutting department and plans that how much fabric must be used. PPC has two further branches 1. Material Resource Planning 2. Production Planning and Monitoring 1-Material resource planning

Material Resource Planning is done for the material procurement, like sundries, yarn and fabric. It is basically done to analyze that how much is needed, what is needed, when is needed, what is the cost of the material and how to acquire the resources. 2-Production planning

It includes the planning like the Sewing Plan (we can also call it as the Master Plan). Back Ward Production Planning is done and this Production Time Line involves when’s and what’s of the production. Date Wise Plans are made from work order to delivery.

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Departments of Naveena Exports Limited

Documents generation in PPC Store Plan

Store Plan can also be called as Accessories Plan. It involves all the documentation about the sundries being used in the production of the order. It also involves the information about Threads, Buttons, Sewing and Labels. Store Plan is basically a Quantity Plan. Dyeing Plan

It is related with the Dyeing of the fabric that how much fabric is required for an order, and then it is converted in to the Acro fabric. It plans for how much dyes and chemicals are required. For the procurement of the materials, PPC goes for the purchase department. Extra Planning

3-5% extra planning is done for the losses. There are some visible losses and some invisible losses. Visible losses occur from cutting to shipment. Invisible losses are being made in Dyeing process and Finishing Process. Any extra planning requires extra cost. So for the additional planning and additional cost, PPC managers have to go for the Chief Executive. The Production Planning and Control is the nervous system of our organization and undoubtedly it is our key success factor. The nucleus of Naveena and Sarah’s remarkable success has been its impeccable system. PPC conducts detailed pre-production analysis to ensure quality and reproducibility.

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Departments of Naveena Exports Limited

Purchase Department

Every aspect of organization for the manufacturing of the product like sundries, stationary, parts of machineries that can be available locally, chemicals and dyes etc. have to be purchase locally from the local markets. These are usually the general items, involve local purchase for the purchase of machines machinery that is not available in the local market, import department involves in such purchases. This whole import department is concerned with the high involvement machinery. They whole purchase department is do not work the work order or purchase order. Things are purchased according the buyer demand. No buying is done without the order. As such no inventory level is maintained for such goods as these goods are utilized immediately and plan is made for the minimum for the week. Three most important documents are used in the purchase department. Store Plan Store plan comes from the Store and purchase Requisition; It comes from the warehouse. Buyer provides purchase Order and according to this the store department make plan. It is made for one supplier only at one time only. Demand of the supplier is mentioned in the purchase order. These documents are used all over department. Responsibilities of Purchase department

Purchase department is of primary importance in the organization, it fulfill and manage the resources for the organization and ensure smooth functioning. It has the following responsibilities. Procure all goods and services required by the company. Determine the most appropriate and effective method of acquisition for

each request for purchase Assure that best value in all procurements is obtained as authorized under Handbook of Operating Procedures. Verify sufficiency of departmental funds for purchases Maintain a liaison with the Texas Building and Procurement Commission as needed on procurement matters. Conduct all formal communications with vendors regarding purchases Provide assistance on procurement matters to all departments

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Departments of Naveena Exports Limited

Working of Purchase department

Manager from the entire departments can send request to procurement department by using the MPR form, on the behalf of this MPR form purchase department is responsible for the procurement. After a suitable purchase, the material has been allocated to the required department. There are two forms usually used for the purchase as well as the delivering of the material in Naveena exports limited. These are MPR: Material Procurement Recognition

Every department issues this then the purchase department is responsible for procurement. Verification is being done later on by an internal auditor of the company that the material purchase was necessary or unnecessary. MRP: Material Requirement and Planning

This document is used within factory for issuing the material. The quantity as well as quality of the material is being checked by the manger of other department and a self audit is being done. In this way, procurement department at Naveena exports limited perform the procurement activity, and the material purchase is being done systematically. In case of violation of any rules written in manual can cause the charge of fraudulent activity.

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Departments of Naveena Exports Limited

Export department
Export department in Naveena Export limited is quite energetic department. A large number of responsibilities and duties are there which export department have to perform. Purchase order is received from buyer through the merchandizing department. A fax message is send to buying house/buyer for opening L/C. Expected Audit date/time received and go-head is taken from concerned unit (manager) to carry shipment. Arrangements are made for the transportation to move the consignment by the road/train/air as per plan. Funds arrangement for the transportation and custom clearance charges are also been carried out by the export department at Naveena Exports limited. Cargo lifting advice is fixed to custom clearing agent/ Forwarder/ Transportation. Forwarder / clearing agent make arrangements for the custom clearance and booking of the space at earliest vessel. The role of the Export manager is to work closely with the merchandising department HOD to build strong business relationships with current and also prospective export customers. Presently Naveena export to 15 countries, with best practice only being operational in a couple of countries, where full marketing support is in place and clear evidence exists of increasing brand awareness and strong growth is building. Many new territories are approaching Naveena to take on the brand, so the role is to identify the best entry strategy and partner across each country, and then to ensure a clear launch plan is in place, which takes account of local market conditions. Responsibilities

The job holder at the export department has to perform following duties as well as responsibilities in Naveena exports limited. To develop relationship with foreign clients, provide them opportunity to come and visit of the company. Interpret the port policies and other export policies and discuss it with directors and the top management. Make proper arrangement of shipment by keeping in view the cost incur or the freight charges incur during the export of material. Working with supply chain department so as to adopt the effective route for the export of goods and materials.

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Business Operations and Policies

Environment, Health & Safety policy

Environment, Health and Safety Policy
Naveena Group firmly believes that a safe, healthy and a positive work environment can only enhance the well-being of all of its employees. They feel that it’s a key motivational factor to maximize the output and to increase the performance of its employees in a much effective and efficient way. Along with ensuring the welfare of their workforce, they feel that it’s their moral and social responsibility to aware its stakeholders about the environment, health and safety (EHS). This not only helps them to create awareness within the employees in a proper and secure way but it also guides the people living in the suburbs of the industrial area about the environment and its related issues. Some of the steps undertaken directly as a result of Naveena’s EHS system include: Review & examination of EHS policies every two years. Recommendations on appropriate steps if a health or environmental risk is detected. Recommendations with a safety point of view for changes in the basic design of machinery. Dedicated first aid facility with paramedic staff Certifications by SGS and Wrap for practical implementation of EHS systems The practical implementations of Naveena's EHS policies are best reflected on the floors of their industrial units:

Denim Weaving & Knitting
There are at least 176 looms in Naveena Lahore and in Naveena Karachi units. These looms are being used to produce export quality Denim Fabric. These looms release minute fibers of cotton yarn during knitting & weaving, which in return pollutes the air. If these looms are not filtered, then these minute particles of yarn can create inhalation problem for the employees in the production area and thus, can make them seriously ill. To avoid all these harmful diseases and various other risks, all the knitting halls and weaving sheds have been designed and equipped to continuously refresh the air.Following are the steps that have been taken in this regard Humidification System has been placed to check fibers from escaping in the air Suction Equipment has also been placed to sweep fragments falling on the floor Dust Masks are mandatory equipment for workers in Knitting & Weaving sheds

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Environment, Health & Safety policy

Dyeing & Processing

During the production of Denim, various types of acids and harmful chemicals are used so as to provide a good kind of finishing to the fabric. As, the nature of the chemicals used in the finishing of Naveena are hazardous and it can create certain harmful health problems, various types of measures have been adopted by the company to provide a secure and a healthy environment for its employees against its exposure. Auto Dispensing System (ADS)

Naveena has installed a safe and a secure pipeline system for the transfer of chemicals from one place to another. Different types of acids and other chemicals are used in the dyeing process which is harmful for human health. To avoid mishandlings and to provide a safe mode of transfer of acids and chemicals from their storage places to the production area, Naveena is using an Auto-Dispensing System. This system not only has reduced the need of human handling but also keep the air clean by absorbing the toxics produced by these acids. Personal Protective Equipment (PPE)

Naveena is also providing latest equipments and machinery for the purpose of minimizing the use of human hands such as face masks, rubber gloves, plastic and metal helmets, certain tools to deal with the chemicals In this way, the employees do not have to make direct contact with the toxic substances and the environment of the production area can also be kept neat and clean by vaporizing the toxic gases produced by the harmful chemicals in the dyeing department. Ergonomic Construction

It can be observed that the amount of chemicals and acids used within the production areas can not be decreased and it keeps on increasing to add value into the products and different processes. For this purpose, the floors of the industrial areas are designed in such a way that they should not remain oily and there should be no slipperiness onto the floors in case of any mishap or leaking of the Bleaching tanks. So, keeping in view the usage of tons of acids and chemicals Dyeing facilities have been designed to leak off any spillage leaving the plant floor comparatively dry.

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Marketing Mix of Naveena Exports Limited

Marketing Mix of Naveena
Marketing mix is the term tends to define the four things on which the whole marketing campaign of the company revolves around. The four necessary components of marketing mix are product, price, promotion and placement.

Product

Though Naveena is major exporters and its customers are business customer, how ever the manufacturing product fall into the category of Consumer Products. Consumer products are those products that are purchased for personal use. Naveena’s Garments are durable due to their high quality fabric used for knitting and stiffness and tear strength in the Denim fabric. In consumer’s products, these garments are included in Shopping Products. Shopping products are purchased only after the buyer compares the various products and brands available through different retailers before making a deliberate buying decision. Similarly, Naveena offers a reasonable price, good quality, various colors and styles in their garments. And most of the advertisement is done through electronic media that includes internet, mails and telemarketing.

Core Product

Core products are those products on which the business is actually based upon. In core products which Naveena offer is usually the finished product includes the knitted product includes T shirts, round neck shirts, Trousers, shorts, etc. Beside these finished products, Naveena also offer fabric or textile to its customers, this may include the denim or jeans. Augmented Product

Augmented products are those which are offered by a company to its customers by developing some enhancement or some value addition. In case of Naveena, the augmented product which is being offered by the Naveena is its apparel products includes Jeans or denim Pants and trousers. Naveena Exports Limited 90

Marketing Mix of Naveena Exports Limited

Price
Pricing of a product matters a lot whenever we are going to sale a product, in this highly competitive environment pricing matters a lot and the sale volume as well as the success or failure of a product all depends on the pricing. Naveena is practicing the Pricing Strategies to attract the new buyers and to retain its major buyers. The company adopted the Market Penetration Pricing Strategy in the introductory stage of product life cycle for both the Denim and the T-Shirts. International Pricing Strategy has been adopted along with the other discounts to overcome the competition. Following strategies have been adopted in the growth stage of Denim. Product Line Pricing  Due to Different Product ranges as each

different design and material Cost. Product Bundle Pricing Optional-Product Pricing Discounts   For the major buyers to retain them For additional features

The company also offers discounts if the payments of bills has been made earlier or in other situation, volume purchase is in bulk. Broadly speaking company is currently offering two types of discounts. Early payment of Bills Volume Purchases

Cash Discount

“2/10, net 30” If the buyer pays the Bill within 10 days then he would be given a cash discount of 2 percent on each item. This discount reduces bad debts and credits collections. Quantity Discount

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

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Marketing Mix of Naveena Exports Limited

Promotion
Company is using the push as well as the pull strategy in order to attract its target customers. Usually internet is the major source of promoting its products beside this other modern techniques are also widely used by the company in order to selling of its products. Target Market

The target market of Naveena is the Major international buyers or such brand names that get their products from Asian countries and sell it to the European or other western countries. To get connected with its target customer Naveena is using the massive media in order to promote its product. Major Buyers Naveena’s buyers are very discerning and vigilant to the quality of the end product as well as the services provided. Its association with these globally recognized and renowned brand names speaks volumes of the product and services they offer. As Naveena Exports Limited is offering a variety of products so the targets buyer are also different depending on the market in which they are offering. Denim

There are well known brands of jeans all over the world. All of these brands sell their products all over the world. For this purpose these brands needs quality in every step of the production in order to survive in the market. Naveena Denim unit is providing their services to all of these target customers quite effectively.

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Marketing Mix of Naveena Exports Limited

Knits

Though knitting unit is currently not working but it has strong base of its customers which will be beneficial for its current apparel unit.

Dyeing Genesis is the major buyer for getting dying services from the Naveena dying unit, currently it is also temporarily shut down.

Woven

Naveena woven at Karachi is currently dealing with the world renowned apparel brand like Zara, Jeans club as well as South Pole.

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Marketing Mix of Naveena Exports Limited

Placement
Naveena has adopted the Vertical Marketing system, in which Naveena, the wholesalers and the retailers are acting as a unified system. Naveena sells its Products to the wholesalers of the Branded Companies. Later, these wholesalers sell the products to the retailers in bulk quantity. Some wholesalers have contracted with the retailers and the others are cooperating with each other. Some time Physical distribution of product is required, for this purpose Naveena has its own delivery coaches and a proper system, with the help of these coaches in Lahore and Karachi, local orders are being delivered by Naveena’s own delivery system while national and at international goods are being transported through mass transit system which can be some truck, railway or by air cargo services. The process of delivering the goods follows through in this way. Purchase order is being received from the buyers through the merchandizing department. A fax message is sent to buying house/buyer for opening L/C. Expected Audit date/time is being received. Arrangements are made for the transportation to move the consignment by the road/train/air as per plan. Funds are being arranged for the transportation and custom clearance. Shipment moves for the Karachi is being planned through the following ways. E.g. Truck, Train, and Air. (Rates are as per shipment volume).

Forwarder / clearing agent make arrangements for the custom clearance and booking of the space at earliest vessel. The requirement of the exports are being fulfilled by the agent, the general requirement for the export of the fabrics include the invoice, packing list, export form, valuation form, bill of entry and shipping bill. While going for to deliver the goods proper arrangements are must so that, the goods can easily be shipped to the customers. If in case the shipment process gets delayed or any other problem occurs during the shipment, it will not only cause the financial losses but the company good will also got ruined.

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Product Life Cycle of Naveena Exports Limited

Product Life Cycle
After launching the product, the management wants the product to enjoy a long and a happy life. They are aware that the product would go through a life cycle. The management of Naveena also wanted to enjoy a decent profit from all its distinct units Knitting, Dyeing, Denim and apparel. But unfortunately due to political instability, inflation and energy crisis, the Knitting and Dyeing units went to decline stage. The management keeping in view the recent circumstances successfully pushed the Denim towards the growth stage. But if we look at the over all PLC of the Naveena Exports limited from year 2003-2005, the company was in growth stage at the end of year 2005, company entered in the maturity phase when profit stuck at a point and at the beginning of year 2006, Company entered into declining stage when overall profitability started dropping and company started suffering losses.

Profit

Period of year 2003-2006

2006- Onward

The situation remains same, when in year 2008; management decided to shutdown its knitting and dying business while carrying on the denim business. At the end of year 2008 company started its new business unit in apparel and management is hoping that company will be in growth stage again in the near future.

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Summing Up

Conclusion and Recommendations

Conclusion
From all above discussion and the analysis which I have performed rather it is the industry analysis or the SWOT analysis, it is clear that that the company position is not much strong and it is not exclusively with Naveena through out the world economic crisis has causes this company and the rest of other companies in textile sector to suffer from such short term losses. However in the PLC it is clear that the company is trying to cover up its short coming and trying to minimize the cost incurring in business process and going for such a business in which profitability is higher and risk of default is quite low. Although, the company has faced political instability, energy crisis and economic recessions which forced the management to wind up its Knitting Units but still it is making progress by hiring experienced and qualified staff to work on the latest machineries and to bring out Naveena from the ocean of crises. It has been observed during the analysis that Naveena has never compromised on its profit margin despite the intense competition in international market that it lowered down the profit margin of all the suppliers of the Knitting Sector. But the increase in wages rose up the cost of production and decreased the profit margin. Besides this, Naveena is trying to pull out itself from the mismanagement of work by formulating and implementing HR policies and procedures, to strictly follow the work instructions by managing the production units. All these efforts would lead Naveena to a better future. At that time, the Government is neither providing any does not subside nor any facility during the economic crisis and on contrary increasing the salary of labor which is increasing the cost of production. This drastic change during the period of loss has developed another hurdle for Naveena. But now in year 2009, textile policy has been revealed and management as well as I myself is quite hopeful enough that in near future, the company as well as the whole industry will be out of crisis.

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Conclusion and Recommendations

Recommendations
As throughout in my report, I have described that company is highly centralized having decision making authority is in few hands which have certain benefits and drawback as well but the overall system at Naveena Exports limited is quite good, there are few things which can be implemented and improvement can be made.

Training and Development
Employees should be properly trained and training and development should not be taken as a formality, it must be taken as a proper need of the employees and focus should be made on it. One of the major reasons of the turnover at Naveena is that there is no career development opportunity for the employees and employees unable to get promotion in spite of deserving that, so, they got dissatisfied and leave the organization. This must not be there in organization; there must be career development opportunity for the employees so that they can work energetically in the organization.

Remuneration System
Remuneration system must be such that it not only meet the need of the staff but give them more so that they may be perform well as they can get motivated from money. A better remuneration package can do more in this highly competitive environment.

Job Enrichment
One of the major problem which I feel that in the work environment worker are facing is the work environment; work environment at Naveena is such that it does not encourage the staff to work effectively, in fact it is such a intense that employees feel burden and they unable to perform. Beside the work environment, jobs of the employees are designed in such a way that it is unable to enhance the worker KSA’s so they don’t enjoy what actually they are doing. Jobs should be such that the worker really enjoy what they are really doing.

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Conclusion and Recommendations

Promotion of Team Work
Naveena’s culture is such that which is actually more towards individualism, staff as an individual are good but as a team are very bad, this thing should be overcome by promoting the team based culture of the company. Work should be divided in team and reward should be on team based rather than on individual basis.

Fair and Unifying Policy
There should be free, fair and equal policy and it must be same for all the individuals, there must not be the concept of more equal in the organization. All must be treated on equal basis and there should be the rule of principles rather than individuals or some personalities on particular seats.

Human Resource as Investment
What I feel while working in Naveena was that the top management is taking HRD as an expense rather than an investment. This concept need to revived and the cost incur on human resource department must be taken as investment as in the future the real capital or asset will be in the form of workforce rather than monetary capital.

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Learning as an Internee

Learning as an Internee
Naveena Exports Limited has a very affective internship program started from a decade back in which students from different disciplines and institutes are being allowed to get the real time practical experience. I was the internee in Human Resource Department in which I am doing my specialization, whatever I read in books, I get the opportunity to see it in real practice. This was really a very beneficial experience for me and I learn a lot during my internship tenure in Naveena.

Duties
Apparently, internee has not officially any responsibilities or duties; it is the internee’s own wish to take the responsibilities by his/her owns self. However he may or may not be accountable for that.

Human Resource Manual

One of the tasks I have to perform during my internship is to learn the policies of human resource department in Human Resource Manual. I was responsible for to learn these policies and then explain it to the assistant manager HR.

Getting Know How about Practical thing

At the start of my internship, assistant Human Resource Manager introduce me with the basic documents and forms used in the HRD as well as in the whole organization, I was responsible to learn the things about the organization and then to answering the queries of other internees of different departments. Documentation and Record Keeping

During my internship, I was also asked to maintain record of the employees, deliver them the required information, and issue them the experience letter and other supporting documents. Preparing the Record List of the Quality Management System and maintaining a master record book. Naveena Exports Limited 100

Learning as an Internee

Calculation of Salaries and Gratuity

Though Naveena has the human resource information system and it was well developed but beside this HRIS it also has some bugs like in compensation system application it can not calculate the exact salaries and gratuity so, I assist HR manager to calculate these salaries. Analyzing Job and development of Job Description

I used to assist HR manager for analyzing the job of the employees as well as to help them in developing the job description of the employees. Training Need Assessment

At Naveena Export Limited, I in the supervision of HR manager and assistant HR manager used to identifying the needs for the training as well as evaluation of training and doing proper documentation for future use.

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Learning as an Internee

New Knowledge Acquired
After doing my internship it becomes clear to me that books are only dealing with the ideal situation while in real world it is not so, and you have to face many problems particularly in human resource field in which you are dealing with humans and the behavior of an individual is always unpredictable, getting in this internship it become much obvious to me. Beside this in books, I just came across with abstract and the concept develop with thorough study able to make a vague mental image while working in a real scenario help me out to develop a clear understanding about different concepts. I have learn a lot with this internship about the corporate sector and particularly about the human resource management. The things which will be very beneficial for my career are 1. Attitude Change 2. Knowledge Enhancement 1-Attitude Change

The attitude problem of mine is solved with the help of this internship, before this I was thinking that working in an organization is more valuable and a piece of cake and my attitude was not so much professional or formal to work in some organization but after this internship, I feel a very positive change in my attitude and It make me mentally prepare to work in some good organization. Corporate Culture

University culture is quite different than the corporate culture, in university students usually take the thing just formality while in corporate sector you actually have to perform other wise for you there will be no place in the organization. Organization Structure

I have to face the organization structure which was highly bureaucratic in which there is centralized decision making authority and you just have to obey the order no matter, right or wrong beside this at the end incumbent is the only person who will be responsible for the results so, you have to act according to the situation and have to remain vigilant.

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Learning as an Internee

Professional Attitude

Going out from the university in an organization is quite good experience as in the university or college life, you are with your friends and remain informal while in organization you have to be formal, there may be one or two of your friends but more of the other are your colleague and the environment in organization is usually very competitive, you have to wear a professional attitude other wise it will be very hard for you to survive.

2- Knowledge Enhancement

This internship was very much beneficial for me, in one side it develop a professional attitude in me while on the other hand it also enhance my knowledge and a lot of new things I come to learn. There are few things which I wanted to mention here. ISO Certification

As Naveena Exports Limited is ISO 9001-2000 certified company, while working here with this organization I got the opportunity to learn about the ISO certification procedures and requirements for HR department to become an ISO certified company. I also got the

opportunity to interview the ISO officials which really enhance my knowledge about the quality certification processes. Performance appraisal System

Before joining the Naveena as an internee, I had a totally different concept of performance management system but after learning in the HRD I come to know real process and how it is beneficial not only for the organization but for the employees also. Management Information System

Naveena has state of the art oracle based management information system, in which there are different system applications, I learnt the usage of HRIS (Human Resource Information System) of Naveena Exports Limited.

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Learning as an Internee

Training

During my internship, I also learn the procedure for analyzing the need of the training and the documents and the methods used for the training of employees. Job Analysis Process

As per requirement of the ISO and the present trend in the field of human resource management, the process of job analysis seems to be of prime importance, I learn that how to conduct the job analysis as well as to development of job description and job specification, during my internship, I used to assist the HR manager in developing the job description of the employees at Naveena.

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Learning as an Internee

Limitations during Internship
As an internee in Naveena exports, I have to face a number of difficulties which create hurdles for my learning as an internee in this organization. Some of the constraints which may limit my study are Time Constraints

Due to short period of time, it was difficult to go for the in-depth analysis of each and every department of Naveena Exports limited. Field of Study

As my field of specialization is Human Resource Management, so my focus was on the human resource department rather than all the departments of the organization but I have compensated this issue by visiting these departments and getting the required information for my report. Data Secrecy

Naveena is a Private Limited Company, which does not allow sharing and transferring its private data. Due to unavailability of Annual Report, the financial analysis could not be carried out and the company’s important documents could not be available. All forms and documents are attached here are just specimen which are very close to the original one but these are not original due to the data secrecy issue. Communication Barriers

As there is autocratic culture of Naveena Exports Limited and the management here is very bossy and there is a communication gap exist between the management and the rest of the employees, this communication gap also create hindrance for me to getting the data from top management.

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Learning as an Internee

The Effect of Internship on my Future Career
Flexibility in work environment matters a lot; I have learnt it while I was doing my internship in Naveena Exports Limited. The office environment is always remain intensive and the individual have to manage it accordingly in the office, in case of failure he will be no more at the job; this is in the ethics of the work environment and all these ethics become more exhaustive when you are in the human resource department and have to deal with all type of employees. You have to prove your self a calm and pleasant personality. As I was not the responsible person for that office and in actual was acting as an observer or a learner. So, I learn that behavior by observing the people in the HR department that what type of personalities you have to face daily and you have to manage it accordingly. Might be if without this internship I go some where in the office, I may commit thousand of such mistakes and employees get curse on me but after observing all that the job of HR manager is very sensitive and a certain image of HR office has been cultivated in my mind, now whenever I will go to some office I can perform well and I am cent percent sure that without this internship I cant do that effectively as I can do after that. This internship proves better for me in two way, on one side it help to develop a personality in me which exactly match the person of HR department and secondly it help to strengthen my decision about the specialization in human resource as my personality exactly match the nature of job.

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Glossary
Admin Administration Apparel Clothing in general CEO Chief Executive Officer CSD Compliance and Services Division DIR Director ERP Enterprise Resource Planning EOBI Employees old age benefit FTA Free Trade Agreement GRN Gross Received Note Gratuity An award given without claim or obligation HOD Head of Department HR Human Resource HRD Human Resource Department HRM Human Resource Management HRIS Human Resource Information System HR Manual Human Resource Manual ISO International Standard Organization JD Job Description Knits Tie or link together MIS Management Information System MMC Material Management and control MRP Material Recognition Procurement MIR Material Issue Recognition PC Yarn Polyester and cotton Yarn PPC Production Planning and control Department PDCA Plan Do Check Act the quality cycle QC Quality Control Department TNA Training Need Assessment T&D Training and Development Yarn A fine cord of twisted fibers (of cotton or silk or wool or nylon etc.) used in sewing and weaving

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Bibliography
[1]. Aiza Anjam, Internship Report on Naveena Exports Limited, 2008 [2]. Abdul Majeed, Trends in Textile Industry of Pakistan, Pakistan Textile Journal, 2007 [3]. Company’s official website, http://www.naveenalahore.com retrieved on July 26, 2009 [4]. Group official web site, http://www.naveenagroup.com retrieved on August 2, 2009 [5]. Human Resource Manual- dying, denim, knitting; Naveena Exports Limited2005-06; [6]. Muhammad Faisal, Internship Report on Naveena Exports Limited, 2008 [7]. Mary A Kirk, About the Textile Industry of Pakistan, e how article, 2006 [8]. Pakistan & Ready to War Apparel Industry, business, textile sector, Lots of Essays, 2009 [9]. Process Manuals, merchandising, quality assurance, research and development, 2002-2003 [10]. [11]. Shukat Ali, Internship Report on Naveena Exports Limited, 2006 Textile Industry Policy for year 2009-2012 , ministry of Finance , August 2009

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Appendices
Appendix-1

Naveena Exports Limited
Top Management Hierarchy

CEO

Director Services

Director Marketing

Director Production

Director Finance

Director Import Export

Director Public Relation

HOD Services and compliance

HOD Marketing

HOD Procurement

HOD Quality

HOD Production

General Manager Finance

Manager Import

Manager Export

Unit Manager

Admin Manager

Manager Services

Manager Compliance

HOD Marketing

HOD Merchandising

Manager Procurement

Manager Fabric division

Manager Finish division

Manager Finance

Manager Payroll

Assistant Mnager Import

Assistnat Manager Export

Manager Production

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