SHUJABAD WEAVING MILLS LIMITED

REPORT

ON

INTERNSHIP FOR MBA PROGRAME

IQBAL OPEN UNIVERSITY

OFALLAMA

Prepared By Muhammad Shahbaz S/o Muhammad Shafiq Roll# Q579638 Reg#05PMN-0238 Address:C/o Aziz Shop Keeper Double Phatik Old Shujabad Road, Chah Thala Wala, Multan.
SHUJABAD GROUP OF INDUSTRIES, MULTAN

SHUJABAD WEAVING MILLS LIMITED Cell# 0302-7487568

Acknowledgement
Countless thanks to almighty Allah, the lord of the whole universe and the greatest force behind my success in my life. I also pay my heartily to Hazrat Muhammad (Peace Be upon Him) whose whole life is marvel and model of any person belonging to any walk of life. I feel great pleasure and honor to express my Heartiest gratitude and deep sense of obligation to my supervisor professor Mr. Mumtaz Mofti for his keen interest skillful guidance, enlightened views, unfailing patience, mastery advice, inspire attitude and valuable suggestions for the accomplishment of present study. In fact it was not possible to bring this work to fruitful conclusion with out his day and night persuasive and sincere efforts. I pay my gratitude to all other respected teachers of Allama Iqbal Open University. Especially The Voice Chancellor of the University Prof. Dr. Mahmood H.Butt is an ideal personality and it is a great blessing of Allah that we have the opportunity to learn from him. I am highly indebted to Mr. Mohsin Hanan (GM Marketing Shujabad Weaving Mills Limited) who provide me useful information during the internship program.

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SHUJABAD WEAVING MILLS LIMITED

I am grateful to those who have directly and indirectly contributed towards the preparation of this assignment.

Finally I would like to thanks to my adoring parents, for their day and night prayers, sacrifices, encouragement, moral and financial support through out the course of study.

Objectives of Studying the Organization

Managers and scholars assume that there exists something that can be called an organization and that this entity has human members who can be distinguished from non-members. But this assumption is increasingly challenged, as it is increasingly unclear how to identify the human boundaries of organizations and the constituency defining their members. Are customers a part of the organization? What about individuals employed through a temporary employment agency or through outsourcing suppliers? We can no longer easily distinguish organizational members from non-members. Some provisional criteria regarding this distinction maintained in the

organizational studies literature are insufficient. The bottom line is that what connects people in and to organizations are emotions. Those who feel a link to an organization are critical organizational constituents, and those who do not feel this link are unlikely to promote organizational goal. Emotion can no

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longer be assumed to be outside managerial responsibilities as it is inherent to any human and therefore organizational process. Recognizing the complexity of emotion in modern organizations is essential to successful management.

MISSION STATEMENT
Mission of Shujabad Weaving Mills Ltd
Mission of Shujabad Weaving Mills Limited is To produce superior quality fabric to face competition in the international market and to train the staff at the world-class level to enhance the maximum shareholders value

SHUJABAD GROUP OF INDUSTRIES, MULTAN

SHUJABAD WEAVING MILLS LIMITED

Historical Perspective
The Shujabad Weaving Mills Ltd was incorporated and set up in Multan as a public limited company. It is one of the first few textile mills to be established in the country with modern air jet looms. The Shujabad Weaving Mills Ltd is situated in Qadirpur Rawan By-Pass, at an area spread on 115 acres of land, and from the very inception, it had been designed as an integrated unit. It commenced its business operations in 2005-06 with 96 looms and finishing capacity of nearly 52,000 meters per day. In the mid 50s sponsor of the company decided to divert its production exclusively towards exports and became the pioneer company to have commenced export of grey cloth from Pakistan in 2007. With the passage of time, the company grew in stature and its sponsors became to be known as Shujabad family. This is the growth period of the Shujabad family business, as the company diversified their investments to more feed mills, oil mills, cotton ginning units, chicks mills & rice mills. and so the Shujabad family came to be known as the Shujabad Group of Industries.

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SHUJABAD WEAVING MILLS LIMITED

As years road on, the Shujabad Weaving Mills Ltd continued to expand its exports and earned the reputation of being the leading exporter of fabric and various products in the home textile sector. The companys prosperity is broad about a better quality of life for those who worked for it. The company provides accommodation for its employees, staff and executives as well as plays grounds, parks shops, community centers, and industrial homes for their welfare. It insures that its work force is happy and their families are well cared of. In its desired to forge ahead in the competitive field of the home textile sector, the company has made investments for updating and modernizing its machinery and equipment and insures training of its employees by hiring and contracting its experts in textile for its workers for its staff. As well as sending executives to recognized institutes in the country and abroad for specialized training in management, accounting, IT and technical training. It was the first textile company to introduce quality circles even at the workers level. The main architect of the sales in the marketing of the Shujabad Weaving Mills Ltd has been its Chairman, Mr. Abdul Wahid, who has led the company for the front. For the year ending in September 2007, the company had generated export sales revenue of $60.94 million, of which clothe accounted for nearly US $ 33.95 million; made ups in the textile sector accounted for US $ 14.16 million; fabric sales accounted for :Us $ 10.31 million. The Shujabad Weaving Mills Ltd has been introduced as a public limited company under the companys ordinance on 16 May 2006.

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SHUJABAD WEAVING MILLS LIMITED

List of directors is shown below: Mr. Abdul Wahid (Chairman) Mr. Qaiser Shabbir (Chief Executive) Mr. Muhammad Akram (Director) Mr. Muhammad Tariq (Director)

Organizational Structure

Head Office
CEO

GROUP CHIEF FINANCIAL OFFICER

GM MARKETING

GM ADMINISTRATION

MANAGER ACCOUNTS

GENERAL ADMINISTRAION

SECURITY

CHIEF ACCOUNTANT

SNR. ACCOUNTS OFFICER

FINANCE OFFICER

ACCOUNTS OFFICER

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Marketing Department Structure

GM MARKETING

MANAGER MARKETING

MANAGER EXPORT

DEPUTY MANAGER MARKETING

EXPORT OFFICER

EXPORT OFFICER

MARKETING OFFICER

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SHUJABAD WEAVING MILLS LIMITED

Structure of the Marketing Department

Marketing department in Shujabad Weaving Mills is working as: GM Marketing. GM Marketing is doing:

Controlling local marketing Controlling export marketing Making local contracts with buyers Making export contracts Searching for new markets locally and outstation Promoting sales Settle marketing relating issues with buyers Coordinating between marketing and production department Satisfying buyers

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Deputy Manager Marketing. The Deputy Manager Marketing is the second one to the GM Marketing for local sales. He normally performs the following actions:

Getting local orders Making local contracts Controlling the documentation of local and, Export sales Checking the complete documentation of local sales Coordinating with Accounts Receiving payments from buyers

Marketing Officer. Marketing officer is liable to do the following:

Preparing the local contracts Preparing the export contracts Preparing delivery orders Complete documentation of sales Assisting the Deputy Manager Marketing

MARKETING STRATEGY Although it may be the duty of the commercial manager to ensure availability of yarn at a reasonable price, it is the exclusive responsibility of Shujabad Weaving Mills to implement the total quality management concept. If units are able to minimize wastage, optimize cost of production, improve quality standards, ensure

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product diversification and learn to market the finished products, no country can compete with Pakistan. Taiwan, Hong Kong, Korea, Japan, Bangladesh are the large manufacturers and exporters of value added textile products, but are dependent on Pakistan and other countries for their requirements of cotton, cotton Fabric and fabric. Their edge is in finishing good quality fabric & producing attractively designed

garments maintaining quality standards and abide by delivery commitments. These countries also follow different marketing strategies, while the Pakistani manufacturers first produce a product and then try to locate a customer; other countries produce what the importers demand. Not only this, buyers are often willing to pay a premium for odd specifications, short delivery time or immediate commencement of shipments of small lots, extra care in meeting specification and better quality standards, using better quality package which may not cost as much as the premium offered. Lately, the manufacturers of Fabric having pragmatic thinking and realizing the tough completion have started producing dyed cones. They have not only tabbed a new market segment but also get better return. Isnt it innovative marketing? Shujabad Weaving Mills have to realize the harsh reality that the days of cheap domestic yarn are over, the import of textile products is being gradually open and quota regime will be phased out gradually. They know their capabilities as well as shortcomings, products they can produce and the products the foreign buyers

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demand, we have to plan today how would they market their products is the days to come.

MARKETING ACTIVITIES

Supply and Trade Information

yarn is purchased directly from spinning mills or import on cash payment basis, the company carries around 6 months supply of yarn at time. The buffer stock for yarn is 25-30 days during lean months. Purchasing usually starts as per demand by the production department to fulfill the different orders. The company emphasis on acquisition of the best possible quality of fabric. The purchase process continues throughout the year. Spare parts and dyes, chemical etc are imported. Dyes and packing materials are purchased locally. The credit period for local purchases is 45 days and 15 days on dyes and packing material respectively. Polyester fiber is purchased from local manufacturer of 120-150 days basis.

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Distribution and selecting terms

The company exports are the major portion of cloth production. In the local market fabric is sold directly to brokers who in turn sell it to other mills for further processing. Grey fabric is sold on cash basis. Local sales account for 25% of total turnover and are made on cash/credit basis.

Managing marketing information

Marketing consist of people, equipment and procedures to get, sort, analyze, evaluate and distribute needed timely and accurate information.

Internal record systems

The basic information system used by marketing managers is the internal record system. It includes order to payment cycle, sales reporting system prices, inventory level etc. By receiving the information, managers can spot important opportunities and problems. The Shujabad Weaving Mills is maintaining its internal records by keeping order to payment cycle. In this system sales/marketing department keep order up-date total order quantity, balance quantity etc. excise department. Prepared invoice

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under the instruction of sales dept and goods are sent to their respective orders by special delivery. Every firm maintains its marketing intelligence system for the feed back from customers and agents etc that what has been happening in the market. Marketing intelligence system is a set of procedures and sources used by managers to obtain their every day information about pertinent development on the marketing environment. The production staffs of Shujabad Weaving Mills visit

the end users for gathering information about their product results and they visit to end-user to solve their problems.

Marketing research systems

Every manager is required to conduct marketing research, formal research on specific problems and opportunities; they conduct a market survey and product preference test and a sales forecast.

Market demand
Shujabad Weaving Mills measures demand by adopting the following method:

Sales representative/agent collect data of total fabric demand.

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Specific demands of particular count are determined and calculate the number of users of said product is calculated. Then total demand is calculated and Shujabad Weaving Mills plans to get maximum share from the market demand.

Marketing Mix
Marketing mix is the marketing task that the firms are to be required its objective in the target market. The marketing mix consists of every thing the firm can do to influence the demand for its product. Many possibilities can be collected into four groups of variables known as the 4ps. 1- Product 2- Price 3- Place 4- Promotion

Product
Shujabad Weaving Mills Limited produces gray cloth and high quality fabric. Their products play an important role in the building the goodwill of the SWML.

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SHUJABAD WEAVING MILLS LIMITED

SWML exports more than 50% of its products and remaining they sell in the local market. Main product of SWML is Gray-cloth. all the products are produce according to the requirement of customer order.

The main products of SWML are as follow: FABRIC PRODUCTS They can also be distinguished under two heads: 1-Gray Fabric or Cora 2-Other Fabric (processed) 1)- Gray Fabric or Cora 20*20/60*60 30*30/76*68 40*40/100*80 12*10/60*60 22*22/60*60 24*24/68*63

2)- Other Fabric (processed) Printed Fabric Dyed Fabric Bleached fabric or white

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Strategies In Price Fixing There are two types of price fixing strategies Directly to customer Indirectly to customer

Directly to customer If they sell their product directly to the customer then they fix price in such a way Fixed cost + Variable cost + Desired profit

Indirectly to customer If company sells their products indirectly then they fix price in such a way Fixed cost + Variable cost + Desired profit + Middle mans commission In this case the profit margin depends upon the quality and condition of the market. If the market is new then the price will be new to attract the customers and compete the existing competitors.

PRICING PROCEDURES

1-Pricing Procedure For The Local or National Market SWML sells more then 50% of its products in the foreign market. They sell only extra quality left from the foreign order or defected product in the local market.

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Sometimes SWML sells on its products at cut-price. Because, when some extra quantity is from the foreign order they sell at cut price because, they have already charged their cost from the foreign customer.

2-Pricing Procedure For The International Market Pricing procedure of SWML for export is different from the local procedure. They keep in mind certain factors before changing the price in foreign market. When any customer wants to purchase the products, after negotiation they fix the price. Because, there are certain other factors are also included with fixed cost. The important factors are quality of.

Pricing procedure for export Shujabad Weaving Mills Limited has following procedure for exports Inquiry Customer inquiries are received from telex, fax and letter. They are directly sent for approval to CEO and after approval sent to concerned department.

Costing Costing sheets are prepared for CEOs approval. In the absence of CEO, department G.M Marketing approves price. If both are not available then section Deputy Manager Marketing is allowed to quote the price.

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Approval CEO gives the approval or may give other price to be offered. Contract review & check sheet

Section in charge takes following steps before issuing a contract: Prepare contract review check sheet The requirements are adequately defined and involvements of production areas. In house/out side have the capability to meet the order requirements. After getting approval of costing and review of customer requirements, prices are quoted to customer for confirmation. After confirmation of prices by customer, sales contract is issued to the customer with complete detail of construction, width/size, price, quantity, delivery, payment terms etc. and the cloth order is sent to relevant department.

Purchase order Purchase indent folder are received from customer pertaining to different contract booked sectional in charge check and see any discrepancy of the contract if any is found, then it is come to the knowledge of the customers for amendment. Grey demand Grey demand placed to the following department

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To export sales section for new order or revision To production planning and coordination (PPC) they are coordination between export and processing department. The stock management for updating stock position Inspection Grey cloth for issuance of Grey to processing

Strike off preparation & approval Customer sends their designs either as on art paper; as paper sketch or fabric cutting. From these cuttings the strike off is made.

Assortment Once customer is satisfied with strike off, the order quantity is assorted with design.

Letter of credit L/C is established and after receipt of L/C these are checked with regard of ordered goods by the sectional in charge and discrepancies in L/C are noted and the customer is informed for amendment.

Dispatch of goods Dispatch able goods detail along with samples received from folding department. Each section verifies quantity of goods to be dispatched, they intimate to S & D section to dispatch goods.

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Shipment Shipment & dispatch is responsible for all documentation and shipment of goods by air and sea. ISO department prepared management information system report. Customer complaints After receiving the goods if customer found any defect, they complaints the same to the concerned department in charge. Sometimes send the defective sample for review. Place / Distribution SWML exports more then 50% of its products. They are using two types of channels of distribution in export their products.

Direct Channel

SWML

Customer

Indirect Channel

SWML

Middle man (agent)

Customers

As most of the products of SWML are exported, so they use the different modes of transportation to transfer the product from SWML to the customer country.

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Mostly SWML exports its products through ships. There are other modes of transport also being use: Trucking Companies Airlines Companies Shipping Companies

SWML exports its products to all over the world but the major countries are as follow: Turkey U.S.A Bangladesh Hong Kong

Italy
Germany Austria

Promotional Strategies The SWML has not any promotion point of its products because the demand of their products in the world is very high. We can easily judge them from their work. Our export figure is varying high as compare to any individual company.

Quality policy of the company is as under

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It is the policy of SWML to provide products and services that consistently meet the expectations of our customers. Encourage total employee involvement in the never-ending effort to improve the quality of our products and services. All employees are responsible for the quality of their own work. All have the authority to initiate action to prevent the occurrence of product nonconformity. Managers at all levels in the organization are responsible for quality improvement activities within respective areas. Top management will provide leadership and direction of achieving quality improvement by interpreting policy, recommending strategies, organizing resources, and assisting managers in the development and implementations plans.

Quality Objectives
The quality objectives of SWML are as follow: To have a strong quality check at all stages of production thus paying a way to have a better overall quality of the product and reducing overall rejection. To achieve the sales target. To improve the delivery system and to eventually achieve 100% on time delivery.

Following are some findings of our report:

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There are no motivating factors for the employees Companies personal policies are not good The performance appraisal are not carried regularly Company is facing the main problem of textile industry crises in the country due to floods, leaf curl virus etc. The company is unable to use its full plant capacity, which shows that technical staff is not up to the standards The employees are not much aware of latest available computer programs The management is not doing anything for the purpose of satisfying and motivating their employees and the workers, which may lead towards the more productivity.

Changing Government policies are providing problems for the company exports policies.

The short-term solvency and long term solvency of the company is better and still acceptable, because there is still a margin of getting long-term loan.

Following are some suggestions

A proper training should be given to the employees and the workers to enhance their skills to increase their productivity and ultimately of the company.

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The management should make the market survey time to time to get more and latest information about the market factors like the price, demand, current consumer trends etc. As the world has become a global village, the management should have the latest knowledge and informations about the world because now a little change in any corner of the world can affect your business.

The top management should give the autonomy and the flexibility to every manager to make decisions according to the situation at any time and in the absence of the top managers.

All the duties and responsibilities of the employees and the workers should be clearly defined.

The computer technology should also be used in decision making as well as in storing and feeding the data. The company should make it possible to deliver the goods to the buyers at the agreed time. The company should adopt an efficient appraisal system and give rewards to the employees who have done well. The management should recruit right persons for the right job. The management should be able to assess the problems before its occurring so that they are able to find the ways of their solution. The management should hire multi-skilled workers to get economy of scale.

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The company should emphasize on its personnel department immediately on emergency basis. Long-term solvency is good but time interest ratio should also be improved. There should be decentralization in decision-making An effective relationship and coordination between the departments must be there. It should be realized to be very clear about the advantages and disadvantages of each strategy to take effective decision about its continuity to make an effective strategic implementation.

Shujabad Weaving Mills Ltd should also introduce its brands in local markets.

Company should give proper attention to deal with dead fabric and made ups.

Conclusion
We got a lot of experience from Shujabad Weaving Mills Limited. During our internship we came to know that how the different activities take place, what are the Procedures. The Shujabad Weaving Mills Limited is on the way of progress. It has been earning profit. The management is professionally qualified and experienced.

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The Shujabad Weaving Mills Limited should motivate their employees by providing different incentives. Their salary package is also not attractive. The performance of the Human Resource department is also not satisfactory. Shujabad Weaving Mills Limited product (Fabric & cloth) is of high quality. The demand of Shujabad Weaving Mills Limited products is increasing with the passage of time. The company should expand its capacity as soon as possible to satisfy the demands of their customers.

Refrences & Source Used

I used the reference of my friend Mr. Farooq Taj who work in Shujabad weaving mills ltd as a Marketing officer.

SHUJABAD GROUP OF INDUSTRIES, MULTAN