MASOOD TEXTILE MILLS LIMITED

MASOOD TEXTILE MILLS LIMITED

 Case study on
Masood Textile Mills

Presented To:- Mr. Liaqat Ali

Presented by:- Muhammad Farasat Zia (09-NTU-5028)

Muhammad Hamza (09-NTU-5029)
Muhammad Imran (09-NTU-5030)

MASOOD TEXTILE MILLS LIMITED

 History of MTM

Masood Textile mills were incorporated in 1984 with 4 spinning mills.

Initially it was engaged only in spinning.

In 1993 company changed its strategy by adding up most process and
disposed off three spinning units.

In 1995 company made its own garments units with only 35 stitching
and with 75 sewing machines.

MASOOD TEXTILE MILLS LIMITED

 History of MTM

In 1996 company management has made the plan to use its own
production of yarn for producing value added products because of the
slump in international and local yarn market.

For implementing this plan, company made heavy investment in 1997

for modernization and expansion of production facilities towards value
added operations.

For this purpose 6 dyeing machines were installed and further knitting,
dyeing and finishing machinery was being imported.

MASOOD TEXTILE MILLS LIMITED

 History of MTM
Building was also constructed to install more stitching machines for
producing value added products.

In 1998, company was earning 470 million rupees per annum which was
increasing day by day.

In 2009, it increases and earning raise to 6120 million rupees per annum.

 In 2010, company has more than 1725 sewing machines.

Today it has more than 4700 stitching machines of different brands. All
credit of this success goes to visionary leadership of Mr. Shahid Nazir, the
Chief Executive of the company.
MASOOD TEXTILE MILLS LIMITED
 Introduction to company (MTM)

Ch. Nazir Ahmed was the founder of Masood Textile Mills limited.

The Masood Textile Mills is established under the companies ordinance

1984.

Masood Textile is one of the largest knitted garment manufacturers of

Pakistan. The company is 100% export oriented. U.S.A. and Europe are
major markets of Masood Textile.

It is a quality conscious company. The company is ISO 9002 certified.

MASOOD TEXTILE MILLS LIMITED

 Introduction (cont…)
It is vertically integrated textile unit.

The Masood Textile Mills is leader in creating, developing and

manufacturing of knitted apparel products.

MTM translates the conceptual ideas of our customers into reality and
shape them through our technical bent. The team here strongly believes
that Customer satisfaction is the essence of business today.

MTM has the technology with expertise, products with knowledge and
most importantly the right mindset to achieve total customer satisfaction.

MASOOD TEXTILE MILLS LIMITED

 Introduction (cont…)
MTM is the only textile unit in the Pakistan with latest computerized
bar code system, which assures quality in every operation from spinning
to packing; products of each department carry bar coded stickers which
bear all the details and history of the operation of that product.

If any problem occurs, one can trace back the root of the problem and
enables to prevent that problem to be occurred again in future.

In the beginning, they were using manual recording system of

inventory, raw material & salaries.

Now MTM is the only company which has ‘Direct-to-Store’ supply

chain management system. .

MASOOD TEXTILE MILLS LIMITED

 AWARDS

Masood has a pride to win following international awards,

JCPenney has awarded Masood "Operational Excellence Award

for 2002"

MASOOD TEXTILE MILLS LIMITED

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

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

MASOOD TEXTILE MILLS LIMITED

 AWARDS

Certificates Distribution Ceremony for Trainee Stitch Machine Operator

& Supervisor on 02/07/2003

JCPenney 30/09/2003

MASOOD TEXTILE MILLS LIMITED

 AWARDS

Russell Corporation 12/07/2003

Tommy Hilfiger 19/06/2003

MASOOD TEXTILE MILLS LIMITED

Our Customers

MASOOD TEXTILE MILLS LIMITED

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

MASOOD TEXTILE MILLS LIMITED

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

MASOOD TEXTILE MILLS LIMITED

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

ATHLETIC SPORTS WEAR UNDER WEAR

MASOOD TEXTILE MILLS LIMITED

 VISION STATEMENT

“To be the world’s best apparel

company”

MASOOD TEXTILE MILLS LIMITED

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

MASOOD TEXTILE MILLS LIMITED

 Proposed Vision Statement

To be the leading textile company by exceeding

customers’ satisfaction and achieving market
leadership and operating excellence in every segment
of our company.

MASOOD TEXTILE MILLS LIMITED

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

MASOOD TEXTILE MILLS LIMITED

Strategy-Formulation Analytical Framework

Stage 1: Stage 2:
The Input Stage The Matching Stage

Stage 3:
The Decision Stage

MASOOD TEXTILE MILLS LIMITED

Strategy-Formulation Analytical Framework

External Factor Evaluation

Matrix (EFE)

Stage 1: Internal Factor Evaluation

The Input Stage Matrix (IFE)

Competitive Profile Matrix

(CPM)

MASOOD TEXTILE MILLS LIMITED

 External Factor Evaluation Matrix
Opportunities Weight Rating Score
1. Increase in apparel retail business 0.12 4 0.48
2. Exploring new market 0.10 2 0.20
3. Modernizing technology 0.12 4 0.48
4. Introduce its own label in domestic & international market. 0.05 1 0.05
5. Lean manufacturing 0.11 3 0.33
6.Export fabric 0.07 3 0.21

Threats
1. Attitude of the consumer changing 0.11 4 0.44
2. Low price offered by other competitors 0.09 3 0.27
3. Political instability & government regulation 0.08 1 0.08
4. Seasonal orders 0.08 2 0.16
5. Increasing rate of inflation(13.5%) 0.07 3 0.21
Total 1.00 2.91
MASOOD TEXTILE MILLS LIMITED
 Internal Factor Evaluation Matrix
Strength Weight rate Score
1. Vertical integrated system 0.10 4 0.40

2. High quality product 0.11 4 0.44

3. Aggressive R & D 0.09 4 0.36

4. Back track system & DTS system 0.08 4 0.32

5. Efficient management 0.07 4 0.28

6. Flexibility & contingency to increase production 0.06 3 0.18

7. ISO certified 9002 0.06 3 0.18

8.Financial position 0.09 4 0.36

9.Offshore Manufacturing 0.07 3 0.21

Weakness
1. High cost production 0.07 1 0.07

2. Employee turnover rate (2.1% per year) 0.05 2 0.10

3. Product line limited 0.04 2 0.08

4. Small international market share 0.06 1 0.06

5. Longer transit time 0.05 2 0.10

Total 1.00 3.14

MASOOD TEXTILE MILLS LIMITED
 Competitive Profile Matrix
MTM MUST Elcatex Zara
Apparel Textile
Critical Success Factor Weight Rating Score Rating Score Rating Score Ratin Score
g
Product quality 0.12 4 0.48 2 0.24 2 0.24 3 0.36

Reputation 0.09 3 0.27 4 0.36 2 0.18 2 0.18

Management 0.10 4 0.40 3 0.30 2 0.20 2 0.20

Customer loyalty 0.09 4 0.36 3 0.27 2 0.18 2 0.18

Market share 0.10 2 0.20 4 0.40 2 0.20 2 0.20

Technological adoption 0.11 4 0.44 4 0.44 2 0.22 3 0.33

Financial position 0.11 4 0.44 3 0.33 2 0.22 2 0.22

Price competitiveness 0.09 2 0.18 4 0.36 3 0.27 2 0.18

Research & development 0.12 4 0.48 3 0.36 2 0.24 2 0.24

Advertisement 0.07 4 0.28 3 0.21 2 0.14 2 0.14

Total 1.00 3.53 3.27 2.09 2.26

MASOOD TEXTILE MILLS LIMITED

Strategy-Formulation Analytical Framework

SWOT Matrix

SPACE Matrix

Stage 2:
The Matching Stage

IE Matrix

Grand Strategy Matrix

MASOOD TEXTILE MILLS LIMITED

 SWOT MATRIX
Strengths :- Weaknesses:-
1.Vertical integrated system 1. High cost production.
2.High quality of product 2. Employee turnover rate
3. Aggressive R & D (2.1% per year)
4. Back track system & DTS system 3. Product line limitation
5. Efficient management
4. Small international market share
6. Flexibility in production
5. Longer transit time to destination
7. ISO certified 9002
8.Financial position
9.Offshore Manufacturing

Opportunities:- SO-Strategy :- WO-Strategy:-

1. Increase in apparel retail business Product development
2. Exploring new market  Market development (W3, O3, & O4)
3.Modernizing technology (S3, S6 , S8, O1 & O2 )  Market development
4. Introduce its own label in domestic &  Reduction in lead time. (W4 O1 & O2)
international market (S1, S5, O3 & O5)  Process optimization & Cost
5. Lean manufacturing mitigation
6.Export fabric (W1, O3 & O5)

Threats:- ST-Strategy:- WT-Strategy:-

1.Attitude of the consumer changing
2.Low price offered by other competitor  Bringing equilibrium in our Gaining economy of scale
3.Political instability & government resources
(S1, S2,S3, S6, S8,T1, T2 & T4) (W1, W4, T2 & T5)
regulation
4. Seasonal orders
5. Increasing rate of inflation(13.5%)
MASOOD TEXTILE MILLS LIMITED
Strategy-Formulation Analytical Framework

SWOT Matrix

SPACE Matrix

Stage 2:
The Matching Stage

IE Matrix

Grand Strategy Matrix

MASOOD TEXTILE MILLS LIMITED

 Space Matrix

Internal Dimensions • External Dimensions

 Financial Strength (FS)  Environmental Stability (ES)

 Competitive Advantage (CA)  Industry Strength (IS)

MASOOD TEXTILE MILLS LIMITED

 Space Matrix
Financial Strength (FS) Environmental Stability (ES)
 Return on investment +6  Technological changes -1
 Leverage +3  Rate of inflation -4
 Liquidity +5  Demand variability -1
 Earning per share +6  Price range of competing products -3
 Net Income +5  Competitive pressure -2

FS = 25/5 ES = -11/5
= 5 = -2.2

MASOOD TEXTILE MILLS LIMITED

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

CA = - 7/5 IS = 19/5
= - 1.4 = 3.8

MASOOD TEXTILE MILLS LIMITED

 Space Matrix
X-axis = CA+IS
= -1.4 + 3.8
= 2.4

Y-axis = FS+ES
= 5 - 2.2
= 2.8

MASOOD TEXTILE MILLS LIMITED

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

-6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6
-1
-2
-3
-4
-5
Defensive Competitive
-6

MASOOD TEXTILE MILLS LIMITED

Strategy-Formulation Analytical Framework

SWOT Matrix

SPACE Matrix

Stage 2:
The Matching Stage

IE Matrix

Grand Strategy Matrix

MASOOD TEXTILE MILLS LIMITED

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

MASOOD TEXTILE MILLS LIMITED

 Internal-External Matrix
IFE Weighted score is (3.14)
Strong Average Weak
3.0 ~ 4.0 2.0~2.9 1.0~1.9
EFE Weighted score is (2.91)

High I II III
3.0~4.0

IV V VI
Medium
2.0~2.9

VII VIII IX
Low
1.0~1.9

The MTM is in the position to Grow & Build

MASOOD TEXTILE MILLS LIMITED
Strategy-Formulation Analytical Framework
SWOT Matrix

SPACE Matrix

Stage 2:
The Matching Stage

IE Matrix

Grand Strategy Matrix

MASOOD TEXTILE MILLS LIMITED

 Grand Strategy Matrix
Rapid Market Growth
Quadrant II Quadrant I

Weak Strong
Competitive Competitive
Position Quadrant III Quadrant IV Position

Slow Market Growth

MASOOD TEXTILE MILLS LIMITED

Strategy-Formulation Analytical Framework

Quantitative Strategic
Stage 3: Planning Matrix
The Decision Stage (QSPM)

MASOOD TEXTILE MILLS LIMITED

 Strategies
In our opinion, the following two strategies
should be adopted for QSPM

Strategy(01)--- Market Development

Strategy(02)--- Process optimization and Cost Mitigation

MASOOD TEXTILE MILLS LIMITED

 Process
Market
Quantitative Strategic Planning Matrix Development
optimization and
Cost Mitigation

Strength Weight AS TAS AS TAS

1. Vertical integrated system 0.10 3 0.30 4 0.40

2. High quality product 0.11 3 0.33 4 0.44
3. Aggressive R & D 0.09 4 0.36 3 0.27
4. Back track system & DTS system 0.08 - - - -
5. Efficient management 0.07 3 0.21 4 0.28
6. Flexibility & contingency to increase production 0.06 4 0.24 2 0.12
7. ISO certified 9002 0.06 3 0.18 4 0.24
8.Financial position 0.09 4 0.36 3 0.27
9.Offshore Manufacturing 0.07 3 0.21 4 0.28
Weakness
1. High cost production 0.07 1 0.07 4 0.28
2. Employee turnover rate (2.1% per year) 0.05 - - - -
3. Product line limited 0.04 - - - -
4. Small international market share 0.06 4 0.24 3 0.18
5. Longer transit time 0.05 - - - -

Total 1.00 2.50 2.76

MASOOD TEXTILE MILLS LIMITED
 Process
Market
Quantitative Strategic Planning Matrix Development
optimization and
Cost Mitigation

Opportunities Weight AS TAS AS TAS

1. Increase in apparel retail business 0.12 4 0.48 3 0.36

2. Exploring new market 0.10 4 0.40 2 0.20

3.Modernizing technology 0.12 3 0.36 4 0.48

4. Introduce its own label in domestic & international market. 0.05 - - - -

5. Lean manufacturing 0.11 3 0.33 4 0.44

6.Export fabric 0.07 - - - -

Threats
1.Attitude of the consumer changing 0.11 3 0.33 2 0.22

2. Low price offered by other competitors 0.09 3 0.27 4 0.36

3. Political instability & government regulation 0.08 - - - -

4. Seasonal orders 0.08 3 0.24 4 0.32

5. Increase rate of inflation(13.5%) 0.07 4 0.28 3 0.21

Total 1.00 2.69 2.59

Grand Total 2.00 5.19 5.35
MASOOD TEXTILE MILLS LIMITED
 Recommendation

On the basis of QSPM, we make the

decision to adopt the cost reduction
strategy

MASOOD TEXTILE MILLS LIMITED

MASOOD TEXTILE MILLS LIMITED