You are on page 1of 3

SWOT Analysis:

The SWOT analysis for Nishat mills limited is as follows.

Strengths:

1. Quality Standards:

Quality standards are its major strengths and hence it also fulfils the requirement of international
standard and has a great importance in the industry internationally as well.

2. Computerized machinery:

This textile giant is using the latest technology for the production of the highly quality products
which also enhances the production capacity of employees.

3. Skilled management:

The highly skilled management from all over the country has been hired by Nishat and especially
the foreign graduate people in their management contributing a lot in the success of the NTM.

4. Financial position:

The owner of the NTM is one of the richest people in Pakistan and has the adequate financial
resources which mean the back of the NTM is very strong.

5. MIS:

NTM is fully equipped with the management information system through which the employees
and various departments are connected with each other and share the data with the top
management. So it is a very appreciable system.

6. Power generation plant:

The electricity power is a very immense issue in Pakistan so NTM has its own power generation
plants and producing the power not for itself only but also selling it to the WAPDA.

Weaknesses:
1. High production cost:

The resources are not being used properly and due to the economic crisis the rates are going up
rapidly and hence cost of production is increasing as well.

2. Bureaucratic organization:

Another weakness is the bureaucratic environment within the organization. The upper
management takes all decision ignoring the employee's suggestions.

3. International market:

NTM has week international market because of china that is very well known in the cost
reduction and creating a big problem in the industry for the NTM internationally and the market
share price has gone down as well.

4. Employee benefits and rewards:

Nishat is not providing any kind of benefits or rewards even the medical allowance and transport
facilities are not given to their employees and this put the productivity down and therefore there
is the lack of motivation in the NTM.

Opportunities:

1. Product expansion:

The very important opportunity for the nishat textile mill is that it should expand its products in
the form of knitwear. As NTM has plants, good market position and strong financial back so it
should avail this opportunity by dealing in knitwear.

2. Low cost production:

The NTM should use the resources in a good way so that the production cost can be reduced to a
great extent and can maximum the profit ration.

3. International market:

NTM should take the benefits of global recession and has a chance to increase its market share
price internationally.

Threats:

1. Political instability:
This is the threat which cannot be ignored due to the current circumstances of Pakistan and the
export of the products may affect in account of this.

2. Government policies:

As the political instability is in Pakistan and every new government imposes its own rules and
regulations and especially the sudden increment in the taxes is not affordable for the NTM.

3. Buyer needs changing:

The NTM has a great threat from international market because of its satisfactory design and
competitors providing the latest ones which can put the NTM reputation down.

4. Global instability:

The global instability is still in operation for this industry. Any unusual incident can happen as
9/11 was happened so still that kind of threats are able to disturb the company performance.