MASOOD TEXTILE MILLS LIMITED

MASOOD TEXTILE MILLS LIMITED

Case study on Masood Textile Mills

Presented To:- Mr. Liaqat Ali
Presented by:- Muhammad Farasat Zia (09-NTU-5028)
Muhammad Hamza Muhammad Imran (09-NTU-5029) (09-NTU-5030)

MASOOD TEXTILE MILLS LIMITED

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

MASOOD TEXTILE MILLS LIMITED

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

MASOOD TEXTILE MILLS LIMITED

Today it has more than 4700 stitching machines of different brands. In 2009.History of MTM Building was also constructed to install more stitching machines for producing value added products. MASOOD TEXTILE MILLS LIMITED . All credit of this success goes to visionary leadership of Mr. Shahid Nazir. company has more than 1725 sewing machines. the Chief Executive of the company. In 1998. it increases and earning raise to 6120 million rupees per annum.  In 2010. company was earning 470 million rupees per annum which was increasing day by day.

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

The Masood Textile Mills is leader in creating.Introduction (cont…) It is vertically integrated textile unit. MASOOD TEXTILE MILLS LIMITED . MTM translates the conceptual ideas of our customers into reality and shape them through our technical bent. developing and manufacturing of knitted apparel products. 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.

Now MTM is the only company which has ‘Direct-to-Store’ supply chain management system. In the beginning. they were using manual recording system of inventory. 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. products of each department carry bar coded stickers which bear all the details and history of the operation of that product. MASOOD TEXTILE MILLS LIMITED . which assures quality in every operation from spinning to packing. .Introduction (cont…) MTM is the only textile unit in the Pakistan with latest computerized bar code system. raw material & salaries.

JCPenney has awarded Masood "Operational Excellence Award for 2002" MASOOD TEXTILE MILLS LIMITED .AWARDS Masood has a pride to win following international awards.

O. Shahid Nazir (C. MASOOD TEXTILE MILLS LIMITED .  JCPenney Awards Masood "The best supplier of the region award 2001-2002". is certified by the WRAP Certification Board. The ceremony was held in Singapore on 17th July 2002.) received this award.AWARDS Masood Textile Mills Ltd.E.

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 .

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

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.

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

VISION STATEMENT “To be the world’s best apparel company” MASOOD TEXTILE MILLS LIMITED .

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

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

Strategy-Formulation Analytical Framework Stage 1: The Input Stage Stage 2: The Matching Stage Stage 3: The Decision Stage MASOOD TEXTILE MILLS LIMITED .

Strategy-Formulation Analytical Framework External Factor Evaluation Matrix (EFE) Stage 1: The Input Stage Internal Factor Evaluation Matrix (IFE) Competitive Profile Matrix (CPM) MASOOD TEXTILE MILLS LIMITED .

Seasonal orders 0.48 0.12 4 Score 0.07 3 0. Exploring new market 3.11 0. Low price offered by other competitors 3.09 0. 5.00 2.08 0.27 0.91 MASOOD TEXTILE MILLS LIMITED . Lean manufacturing 6. Modernizing technology 4.08 0.16 5. Introduce its own label in domestic & international market.21 Total 1.33 0. Political instability & government regulation 4.21 Threats 1. Attitude of the consumer changing 2.07 2 4 1 3 3 0. Increase in apparel retail business Weight Rating 0.Export fabric 0.External Factor Evaluation Matrix Opportunities 1.5%) 0.11 0.20 0.05 0.05 0.48 2. Increasing rate of inflation(13.44 0.08 4 3 1 2 0.12 0.10 0.

06 0.32 0. Aggressive R & D 4.10 0.Financial position 9.09 0.14 MASOOD TEXTILE MILLS LIMITED .1% per year) 3.18 0. Back track system & DTS system 5. Product line limited 4. High cost production 2.06 0.07 0.18 0.40 0.05 0. Longer transit time 0.05 1 2 2 1 2 0.07 rate 4 4 4 4 4 3 3 4 3 Score 0.07 0.11 0.00 3.21 Weakness 1.Internal Factor Evaluation Matrix Strength 1.36 0.10 0.36 0.08 0. High quality product 3.06 0.06 0.09 0.44 0. Employee turnover rate (2. Flexibility & contingency to increase production 7. Efficient management 6.Offshore Manufacturing Weight 0.04 0. Small international market share 5. Vertical integrated system 2.10 Total 1.08 0.07 0.28 0. ISO certified 9002 8.

24 0.27 0.21 2 3 2 2 0.48 0.11 MUST Apparel Rating 2 4 3 3 4 4 Elcatex Rating 2 2 2 2 2 2 Zara Textile Ratin g 3 2 2 2 2 3 Rating 4 3 4 4 2 4 Score 0.12 0.18 0.27 2.24 0.33 0.12 0.36 0.18 0.09 2.44 0.09 0.18 0.18 0.00 3.30 0.20 0.24 0.22 0.44 Score 0.20 0.27 0.36 0.20 0.10 0.48 0.40 0.33 Financial position Price competitiveness Research & development Advertisement 0.14 2 2 2 2 0.24 0.09 0.44 Score 0.Competitive Profile Matrix MTM Critical Success Factor Product quality Reputation Management Customer loyalty Market share Technological adoption Weight 0.27 0.28 3 4 3 3 0.09 0.07 4 2 4 4 0.36 0.40 0.36 0.20 0.26 MASOOD TEXTILE MILLS LIMITED .10 0.11 0.18 0.22 Score 0.53 3.18 0.36 0.22 0.20 0.14 Total 1.

Strategy-Formulation Analytical Framework SWOT Matrix SPACE Matrix Stage 2: The Matching Stage IE Matrix Grand Strategy Matrix MASOOD TEXTILE MILLS LIMITED .

(S1.Low price offered by other competitor 3.Attitude of the consumer changing 2. S5. Lean manufacturing 6.Political instability & government regulation 4. Efficient management Weaknesses:1.1% per year) 3. O1 & O2 )  Reduction in lead time. ISO certified 9002 8.SWOT MATRIX Strengths :1. Product line limitation 4.High quality of product 3.Export fabric SO-Strategy : Market development (S3. & O4)  Market development (W4 O1 & O2)  Process optimization & Cost mitigation (W1. S8.T1. O3 & O5) WO-Strategy:Product development (W3. O3 & O5) Threats:1.Modernizing technology 4. Employee turnover rate (2.Vertical integrated system 2. High cost production. Flexibility in production 7. S6. Small international market share 5. Increase in apparel retail business 2. W4. S2.Financial position 9. T2 & T5) MASOOD TEXTILE MILLS LIMITED .5%) ST-Strategy: Bringing equilibrium in our resources (S1. Introduce its own label in domestic & international market 5.Offshore Manufacturing Opportunities:1. Longer transit time to destination 6. Increasing rate of inflation(13. Exploring new market 3. Back track system & DTS system 5. S8. 2. S6 . T2 & T4) WT-Strategy:Gaining economy of scale (W1. Seasonal orders 5. O3. Aggressive R & D 4.S3.

Strategy-Formulation Analytical Framework SWOT Matrix SPACE Matrix Stage 2: The Matching Stage IE Matrix Grand Strategy Matrix MASOOD TEXTILE MILLS LIMITED .

Space Matrix Internal Dimensions  Financial Strength (FS)  Competitive Advantage (CA) • External Dimensions  Environmental Stability (ES)  Industry Strength (IS) MASOOD TEXTILE MILLS LIMITED .

Space Matrix Financial Strength (FS)      Return on investment Leverage Liquidity Earning per share Net Income +6 +3 +5 +6 +5 Environmental Stability (ES)      Technological changes Rate of inflation Demand variability Price range of competing products Competitive pressure -1 -4 -1 -3 -2 FS = 25/5 = 5 ES = -11/5 = -2.2 MASOOD TEXTILE MILLS LIMITED .

8 MASOOD TEXTILE MILLS LIMITED .7/5 = .4 IS = 19/5 = 3.1.Space Matrix Competitive Advantage (CA) Industry Strength (IS) Market share Product quality Customer loyalty Technological know-how Vertical integrated system -3 -1 -1 -1 -1      Growth potential Profit potential Resource utilization Ease of entry into market Repute +6 +5 +3 +1 +4 CA = .

2 = 2.4 + 3.4 Y-axis = FS+ES = 5 .8 = 2.2.8 MASOOD TEXTILE MILLS LIMITED .Space Matrix X-axis = CA+IS = -1.

Space Matrix Conservative +6 +5 +4 +3 +2 +1 Aggressive -6 -5 -4 -3 -2 -1 -1 -2 -3 -4 -5 -6 +1 +2 +3 +4 +5 +6 Defensive Competitive MASOOD TEXTILE MILLS LIMITED .

Strategy-Formulation Analytical Framework SWOT Matrix SPACE Matrix Stage 2: The Matching Stage IE Matrix Grand Strategy Matrix MASOOD TEXTILE MILLS LIMITED .

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

9 EFE Weighted score is (2.9 VIII IX The MTM is in the position to Grow & Build MASOOD TEXTILE MILLS LIMITED .91) High 3.0~1.0 Average 2.0~1.0 ~ 4.0~2.0~2.0~4.0 I IV II V III VI Medium 2.9 Weak 1.14) Strong 3.9 VII Low 1.Internal-External Matrix IFE Weighted score is (3.

Strategy-Formulation Analytical Framework SWOT Matrix SPACE Matrix Stage 2: The Matching Stage IE Matrix Grand Strategy Matrix MASOOD TEXTILE MILLS LIMITED .

Grand Strategy Matrix Rapid Market Growth Quadrant II Quadrant I Weak Competitive Position Quadrant III Quadrant IV Strong Competitive Position Slow Market Growth MASOOD TEXTILE MILLS LIMITED .

Strategy-Formulation Analytical Framework Stage 3: The Decision Stage Quantitative Strategic Planning Matrix (QSPM) MASOOD TEXTILE MILLS LIMITED .

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

Vertical integrated system 2.21 0.28 0.07 0.06 0.Quantitative Strategic Planning Matrix Strength 1. Aggressive R & D 4.08 0.Financial position 9. Flexibility & contingency to increase production 7.40 0. ISO certified 9002 8.11 0.18 0.33 0. Longer transit time 0.24 0. High quality product 3.76 MASOOD TEXTILE MILLS LIMITED .09 0.21 Process optimization and Cost Mitigation AS 4 4 3 4 2 4 3 4 TAS 0.07 0.27 0.07 0.28 Weakness 1. Small international market share 5.10 0.36 0.04 0. Product line limited 4.00 2.28 0.05 1 4 - 0.Offshore Manufacturing Weight 0.50 2.36 0.05 0.06 0. Back track system & DTS system 5. High cost production 2. Efficient management 6.09 0. Employee turnover rate (2.06 0.24 0.07 3 3 4 3 4 3 4 3 Market Development AS TAS 0.1% per year) 3.18 - Total 1.30 0.44 0.27 0.12 0.24 - 4 3 - 0.

08 0.12 0.48 0.35 MASOOD TEXTILE MILLS LIMITED .12 0.21 Total 1.Modernizing technology 4.11 0.08 0. Lean manufacturing 6.07 3 4 0. 5.32 0.33 0.Attitude of the consumer changing 2.20 0.07 4 4 3 3 - Market Development AS TAS 0.33 - Process optimization and Cost Mitigation AS 3 2 4 4 - TAS 0.59 Grand Total 2.36 0.09 3 3 0.5%) 0.05 0. Increase in apparel retail business 2.24 0.36 0.10 0. Introduce its own label in domestic & international market.36 3.19 5. Low price offered by other competitors 0.27 2 4 0.69 2.Export fabric Weight 0.00 5. Increase rate of inflation(13.00 2.11 0.22 0.48 0.Quantitative Strategic Planning Matrix Opportunities 1. Exploring new market 3.28 4 3 0.40 0. Seasonal orders 5.44 - Threats 1. Political instability & government regulation 4.

Recommendation On the basis of QSPM. we make the decision to adopt the cost reduction strategy MASOOD TEXTILE MILLS LIMITED .

MASOOD TEXTILE MILLS LIMITED .

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