MASOOD TEXTILE MILLS LIMITED
MASOOD TEXTILE MILLS LIMITED
MASOOD TEXTILE MILLS LIMITED
Case study onCase study onMasood Textile MillsMasood 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
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.
History of MTM
MASOOD TEXTILE MILLS LIMITED
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.
History of MTM
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
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. .
Introduction (cont…)
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
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.
AWARDS
MASOOD TEXTILE MILLS LIMITED
Certificates Distribution Ceremony for Trainee Stitch Machine Operator & Supervisor on 02/07/2003
JCPenney 30/09/2003
AWARDS
MASOOD TEXTILE MILLS LIMITED
Russell Corporation 12/07/2003
Tommy Hilfiger 19/06/2003
AWARDS
MASOOD TEXTILE MILLS LIMITED
Our Customers
MASOOD TEXTILE MILLS LIMITED
MASOOD TEXTILE MILLS LIMITED
PRODUCTS
YARN:-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:-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 2:The Matching Stage
Stage 1:The Input Stage
Stage 3:The Decision Stage
MASOOD TEXTILE MILLS LIMITED
External Factor EvaluationMatrix (EFE)
Internal Factor EvaluationMatrix (IFE)
Competitive Profile Matrix(CPM)
Stage 1:The Input Stage
Strategy-Formulation Analytical Framework
MASOOD TEXTILE MILLS LIMITED
External Factor Evaluation MatrixOpportunities 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 MatrixStrength 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
Weakness1. 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 Apparel
Elcatex Zara Textile
Critical Success Factor Weight Rating Score Rating Score Rating Score Rating
Score
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
IE Matrix
Grand Strategy Matrix
Stage 2:The Matching Stage
MASOOD TEXTILE MILLS LIMITED
Strengths :-1.Vertical integrated system2.High quality of product3. Aggressive R & D4. Back track system & DTS system 5. Efficient management6. Flexibility in production7. ISO certified 9002 8.Financial position 9.Offshore Manufacturing
Weaknesses:-1. High cost production.2. Employee turnover rate (2.1% per year)3. Product line limitation4. Small international market share5. Longer transit time to destination
Opportunities:-1. Increase in apparel retail business2. Exploring new market3.Modernizing technology4. Introduce its own label in domestic & international market5. Lean manufacturing6.Export fabric
SO-Strategy :-
Market development (S3, S6 , S8, O1 & O2 ) Reduction in lead time. (S1, S5, O3 & O5)
WO-Strategy:- Product development (W3, O3, & O4) Market development (W4 O1 & O2) Process optimization & Cost mitigation (W1, O3 & O5)
Threats:-1.Attitude of the consumer changing 2.Low price offered by other competitor 3.Political instability & government regulation4. Seasonal orders5. Increasing rate of inflation(13.5%)
ST-Strategy:-
Bringing equilibrium in our resources (S1, S2,S3, S6, S8,T1, T2 & T4)
WT-Strategy:- Gaining economy of scale (W1, W4, T2 & T5)
SWOT MATRIX
MASOOD TEXTILE MILLS LIMITED
Strategy-Formulation Analytical Framework
SWOT Matrix
SPACE Matrix
IE Matrix
Grand Strategy Matrix
Stage 2:The Matching Stage
MASOOD TEXTILE MILLS LIMITED
Space Matrix
Internal DimensionsInternal Dimensions • External DimensionsExternal Dimensions
Financial Strength (FS)
Competitive Advantage (CA)
Environmental Stability (ES)
Industry Strength (IS)
MASOOD TEXTILE MILLS LIMITED
Space Matrix
Financial Strength (FS) Return on investment +6 Leverage +3 Liquidity +5 Earning per share +6 Net Income +5
FS = 25/5
= 5
Environmental Stability (ES) Technological changes
-1 Rate of inflation -4 Demand variability
-1 Price range of competing products -3 Competitive pressure
-2
ES = -11/5
= -2.2
MASOOD TEXTILE MILLS LIMITED
Space Matrix
Competitive Advantage (CA)Market share -3
Product quality -1
Customer loyalty -1
Technological know-how -1Vertical integrated system -1
CA = - 7/5
= - 1.4
Industry Strength (IS) Growth potential +6 Profit potential
+5 Resource utilization
+3 Ease of entry into market
+1 Repute +4
IS = 19/5
= 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 Aggressive
Defensive Competitive
+6
+1
+5+4+3
+2
-6
-5-4-3
-2
-1-6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6
MASOOD TEXTILE MILLS LIMITED
Strategy-Formulation Analytical Framework
SWOT Matrix
SPACE Matrix
IE Matrix
Grand Strategy Matrix
Stage 2:The Matching Stage
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
I II III
IV V VI
VII VIII IX
Internal-External Matrix
Strong Average Weak 3.0 ~ 4.0 2.0~2.9 1.0~1.9
High3.0~4.0
Medium2.0~2.9
Low1.0~1.9
IFE Weighted score is (3.14)
The MTM is in the position to Grow & Build
MASOOD TEXTILE MILLS LIMITED
Strategy-Formulation Analytical Framework
SWOT Matrix
SPACE Matrix
IE Matrix
Grand Strategy Matrix
Stage 2:The Matching Stage
MASOOD TEXTILE MILLS LIMITED
Rapid Market Growth Quadrant II Quadrant I
Quadrant III Quadrant IV
Slow Market Growth
Weak Competitive
Position
Strong Competitive
Position
Grand Strategy Matrix
MASOOD TEXTILE MILLS LIMITED
Strategy-Formulation Analytical Framework
Quantitative StrategicPlanning Matrix
(QSPM)Stage 3:
The Decision Stage
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
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
Quantitative Strategic Planning MatrixQuantitative Strategic Planning MatrixMarket
Development
Process optimization and Cost Mitigation
MASOOD TEXTILE MILLS LIMITED
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
Quantitative Strategic Planning Matrix Market Development
Process optimization and Cost Mitigation
MASOOD TEXTILE MILLS LIMITED
Recommendation
On the basis of QSPM, we make the decision to adopt the cost reduction
strategy
MASOOD TEXTILE MILLS LIMITED