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INTERNATIONAL BUSINESS

PRESENTED TO: MR. USMAN GHAURI

PRESENTED BY: NOUMAN KHALID ALI MUNAZZAF UMAR NAEEM

CASE STUDY SAHAF ENTERPRISES LIMITED LAHORE. PAKISTAN. .

• In 2 years. • Sahaf Enterprises entered into carpet export in 1969.Introduction Sahaf Enterprises Sahaf Enterprises Limited Sahaf Group of Industries Sahaf Enterprises Limited Sahaf Corporation Limited Shahdin Limited Company background: • Sahaf Enterprise Company was established in 1925. as a partnership to produce hand made woollen shawls. Sahaf enterprises and Sahaf corporation Limited. they have emerged as group of industries comprising Shadin Limited. . Shadin Limited become one of the largest textile unit of the country. • Within just 2 years. • After about 5 years of business they become a private limited company in 1974.

4m • • Profit gradually came down to 30 million in 1985. REVENUE GROSS PROFIT = 60m = 24. its exported worth was 60 millions.Introduction Company background: • 1979/80 was the best year for Sahaf in terms of exports. having 40% of profit ratio. . in that specific year. due to the recession in international carpet market and the change in the financial priorities. Boost-up in 1986.

Spain and France.Introduction Description of product: • Hand made knotted carpets are made of imported and original wool and cotton. while other 40% normally shared by Italy. Export direction: • About 60% of the exports went to the Germany. ft. • Ranging from 2 >< 3 to 12 >< 18 sq. Switzerland. Holland. Usually from New Zealand. • 80% of the buyers are regular. with finest quality. while other 20% are casual. .

• Germany had 90% demand of Red colour. Spain. • Holland imports large sizes with 80% of Blue colour domination. Framce and Switzerland has same preferences. ft. although Italy imports thin. standard medium sizes • (5 >< 8 and 7 >< 10). The imports soft colours combination in standard rectangular sizes ranging from 2 >< 3 to 4 >< 6 sq. of thick pile. • Germany imports thick pile. now its just 40%.Introduction Export direction: • Italy. .

ANSOFF MODEL .

SWOT ANALYSIS .

Company background STRENGTH: 1: 61 years life span of company producing hand knotted carpets/shawls 2: Knowledge and technical expertise WEAKNESS 1: No past experience of exports to USA 2: High raw material cost 3: Decrease volume of sales/margin 3: Strong business links OPPORTUNITES THREATS 1: Finance availability 2: Focus on diverters .

Description of product STRENGTH 1: Except exported cotton and wool. all other material is collected and managed locally 2: Varity in size and designs 3: In house designing centers WEAKNESS 1: Reliance on imported wool and cotton 2: High holding cost due to different size and designs of carpet OPPORTUNITES 1: New designs having element of antiquity THREATS 1: Competitors can launch a new design .

Exports STRENGTH 1: 80% customers are bulk purchasers so same designs are available in large qualities WEAKNESS 1: Changing customers demands 2: Customers strong preferences with respect to specification of carpets OPPORTUNITES 1: Entrance in new markets THREATS 1: Existing and new competitors .

Carpets Production Agreement STRENGTH 1: Expertise in carpet making 2: Business Links WEAKNESS 1: Over reliance on the work of sub contractors 2: High labor cost 3: Availability of sub contractors due to flexible employment OPPORTUNITES THREATS 1: Child labor enforcement .

In terms of Business STRENGTH 1: Delivering time by air is reduced 2: Good quality 3: Low customers complains after sub services 4: Goodwill WEAKNESS 1: Credit Increase the risk of bad debts 2: High cost OPPORTUNITES THREATS .

Competition STRENGTH 1: High entry Barriers 2: Large market share 3: High quality products of 61 years WEAKNESS 1: High holding cost of stock OPPORTUNITES 1: Foreign markets THREATS 1: Local competitors 2: Foreign competitors .

Carpet Development STRENGTH !: Flexible employment WEAKNESS 1: Understanding the customer‘s actual demands 2: Output is not like as expected OPPORTUNITES 1: New designs THREATS .

CURRET SITUATION .

Modifying existing designs and qualities for export to the US. Qamar Javaid. . 2. Promote existing carpets in the US market. the export director has been doing business successfully since Sahaf began exporting carpets. He has contemplated the following alternatives: 1.Mr. particularly for US. 3. Developing entirely new desiegns and qualities.

Formulation The SWOT can now be used as guiding strategy formulation STRENGTHS M A T C H I N Conversion WEAKNESSESS G OPPORTUNITIES Conversion THREATS .

Keep an eagle eye on customers changing demands. . Focus on short term objectives. Made contracts with locally producers of cotton and wools to reduced the risk of too much relaying on imported raw materials. Build Institutions of Skills & Development for strong man power. Make new distribution channels to attract new customers and to reduce the holding cost. Made new designs. having elements of antiquity to take Edge on competitors.Conversions • • • • • • • Build Institutions for Children so that they continue there study.

• Understanding the culture of the country and what people usually prefers. • Natures.Why we need to do modification? • While lunching our business in any country. especially in carpet market. . • Liking of the people. adaptation is unavoidably needed. • Knowing the values and taste of the people is the basic ingredient for a successful expansion program. • Psychology. • Affordability.

• Distinctive improvisation in designs and patterns.Why we need to do modification? • Carpets should be manufactured according to the customers demands. would surely catch any American eye. . • Synchronization with their lives. • Americans will never say No to any leverage or to any complementing product.

Why modification is needed? Size: US customers are mostly asking for thick pile. standard small/medium sizes: 3 >< 5 4 >< 6 5 >< 8 7 >< 10 Colour: US customers asks for aggressive colours combinations. dark colours are mostly preffered. .

Why we need to do modification? .

Why we need to do modification? .

THANK YOU .