Project Report

Strategic Management of Kohinoor Mills Limited

Project Report Submitted To:

Dr.Kamran Azam Khan

Project Report Submitted By: Raja Asad Mehmood (7620) Shakeel Ahmed (7372) Muhammad Umer (7374) Date : , December, 2013

Riphah School of Leadership

Faculty of Management Sciences Riphah International University Islamabad

Table of Content
Introduction .................................................................................................................................................. 1 ................................................................................................................................................................... 2 Type chapter title (level 3) .................................................................................................................... 3 Type chapter title (level 1) ........................................................................................................................... 4 Type chapter title (level 2) ........................................................................................................................ 5 Type chapter title (level 3) .................................................................................................................... 6

CHAPTER 1
1.1 Introduction
In this project we are explaining the application of strategic management on industry level. The relation of strategic management with different organizations and companies is more important due to easily understand the strategic management. In this project we are also applying the strategic management concept on Kohinoor mills limited. The concept of selection, implementation & evaluation is very easy in the level of studying but these implementations on industry are very difficult. In this project we are covering the area of finance, marketing, sales, strategies implementation and evaluation of Kohinoor mills limited with the help of basic research. After completing the project we will give some suggestions for researchers, managers and teachers. In this first chapter we are covering the introduction of our project and then the main objectives of project in which we were discussing why we are implementing the strategic management in

industries, impact of textiles industries in the economy of Pakistan since 1947. The main issues and problems of this industry are explained for better study and to take the step for solution of these problems. At the end of chapter whole summary is discussed.

1.2

Overview of Industry

Kohinoor textile Mills Ltd is part of Kohinoor Maple Leaf Group, which was born from the Trifurcation of the Saigol group of companies and is a reputable and leading manufacturer of Textiles and cement. KMLG comprises of Kohinoor Textile Mills limited (KTML) and Maple Leaf Cement factory limited (MLCF). Both companies are incorporated in Pakistan and are listed on three stock exchanges of the country. KTML was established in 1953 at Rawalpindi and is one of the oldest companies of Pakistan with over 50 years experience in textile manufacturing. It was initially set up as a spinning and weaving project with 25,000 spindles and 600 looms. However, after decades of aggressive expansion and modernization KTML has emerged into a fully vertically integrated home textiles company with state of the art capabilities for spinning, weaving, dyeing, printing and stitching. The company has a diverse customer base with sales in both the local and export markets. The main international markets include Asia, Europe, USA and Australia. Kohinoor Mills Limited's vision is to achieve and then remain as the most progressive and profitable textile organization in Pakistan. Incorporated in 1987 as a small weaving mill, today Kohinoor Mills broadly undertakes three major businesses, weaving, processing, and power generation. It has, and continues to develop, a portfolio of businesses that are major players within their respective industries. Bringing together outstanding knowledge of customer needs and leading edge technology platforms, your company undertakes to provide superior products to

its customers. With an annual turnover of over Rs. 6 billion, today Kohinoor Mills Limited employs over 1,500 employees. It aims to create superior value for Kohinoor's customers and stakeholders without compromising its commitment to safety, environment and health for the communities in which it operates. Its products range from greige fabric to processed fabric. (KTML, annual report, 2012).

Kohinoor Mills Limited with its state-of-the-art facilities spread over an area of 103 acres is located at 8th KM Manga Raiwind Road near provincial capital city Lahore. Kohinoor Mills Limited is one of the largest vertically integrated textile manufacturers, started its successful journey back in 1949. The company has achieved annual sales of US$ 140 million to customers based in Americas, Europe, Africa, Australia and Asia. We have diversified products and engaged in manufacturing of Grieg and Dyed Fabrics exported to major brands and retail chains. Kohinoor Mills Limited has employed a highly qualified and technically trained workforce of 1500 people working as a closely knitted family based on corporate culture, values and beliefs. Our team is capable of taking on challenges for fulfilling every work related task with dynamism and dedicated efforts.

(http://www.kohinoormills.com/page.php?section=Main&page=AboutKWML, 02-12-2013, 7:35 pm.)

The focus is to create a seamless interface throughout the manufacturing process addressing delivery, cost and quality issues by providing the right product the first time, and at the right time. Lead time follow up from order placement to delivery of goods to the customer is the focal point of the apparel division. With extensive investment into systems right from order taking and procurement through to production and delivery, efficient planning is being done to achieve

better lead times to the satisfaction of the ever growing customer demand. The support from inhouse fabric weaving and dyeing gives a new concept and satisfaction to the customer for attaining quality under the same roof a better production lead time making us able to deliver the full package. Apparel Division places the highest emphasis on manufacturing its apparel products with consistent by incorporating efficient and flexible processes to ensure customer satisfaction. Total Quality management is achieved through effective control and continuous improvement of every process. (KTML, annual report, 2012).

MISSION & VISION STATEMENT

The Kohinoor Mills Limited's stated mission is to become and then remain as the most progressive and profitable company in Pakistan in terms of industry standards and stakeholders interest. The Company shall achieve its mission through a continuous process of having sourced, developed, implemented and managed the best leading edge technology, industry best practices, human resource and innovative products and services and sold these to its customers, suppliers and stakeholders.

Business Activities
The Company is principally engaged in the business of textile manufacturing covering weaving, bleaching, dyeing, buying and selling and otherwise dealing in yarn, cloth and other goods and Fabrics made from raw cotton and synthetic fiber and to generate, distribute, supply and sell electricity.

CODE OF CONDUCT
Introduction to the Code

This code has been formulated to ensure that directors and employees of the Company operate with in acceptable standards of conduct and sound business principles which strive for development and growth. The Company takes pride in adherence to its principles and continues to serve its customers, stakeholders and society. Contents This code identifies the acceptable standards under following headings: Core values Business culture Responsibilities Core values The credibility, goodwill and repute earned over the years can be maintained through continued conviction in our corporate values of honesty, justice, integrity, and respect. The Company strongly believes in democratic leadership style with fair, transparent, ethical and high professional standards of conduct in all areas of business activities. Business culture Operations The Company shall formulate and monitor its objectives, strategies and overall business plan of the organization. The Company shall be continuously involved in the research and development of new products while improving quality of existing products using highest level of quality control measures at every stage of its operations. Creativity and innovation must prevail at all levels of hierarchy to achieve organizational excellence. Abidance of Law It is Company's prime object to comply with all applicable laws and regulations and to cooperate

With all governmental and regulatory bodies. Corporate Reporting The Company maintains effective, transparent and secure financial reporting and internal control systems so as to ensure reliable performance measurement and compliance with local regulations and international accounting standards as applicable. The Company strictly adheres to the principles of good corporate governance and is committed to high standards of corporate governance. The Company regularly updates and upgrades manufacturing and reporting systems so as to keep abreast with technological advancements and achieve economies of production. The Company believes in uprightness and expects it to be a fundamental responsibility of employees to act in Company's best interest while holding confidential information and neither to solicit internal information from others nor to disclose Company's figures, data or any material information to any unauthorized person/body. Inside information about the Company, its customers, vendors, employees shall not be used for their own gain or for that of others directly or indirectly. Responsibilities Shareholders The Company believes in maximizing shareholders value by providing consistent growth and fair return on their investment.

Customers The Company considers it imperative to maintain cordial relationship with the customers as integral to its growth and development of business and is committed to provide high quality products and services that conform to highest international standards.

Employees The Company is an equal opportunity employer at all levels with respect to issues such as color; race, gender, age; ethnicity and religious beliefs and its promotional policies are free of any discrimination. The Company ensures that employees work towards achievement of corporate objectives, individually and collectively as a team and conduct themselves at work and in society as respectable employees and good citizens. The Company believes in continuous development and training of its employees. The Company has set high standards of performance and recognizes employee's contribution towards its growth and reward them based on their performance. The Company believes development, growth and recognition result in motivated employees. All employees of the Company are part of Kohinoor family and the families of all members are also part and parcel of Kohinoor family. The Company believes that the sense of Belonging to Kohinoor fulfils an essential need of its employees and the organization and as such will always be nurtured. Environment Protecting the environment in which we live is an important element. The Company uses all and Social means to ensure a clean, safe, and healthy and pollution free environment not only for its Responsibility

Workers and employees but also for the well being of all people who live in and around any of the production and manufacturing facilities. The Company will always employ such technology as may be beneficial in maintaining a healthy and hygienic working environment. It also believes in community development without political affiliations with any person or group of persons and

contributes part of its resources for a better environment with an unprejudiced approach. (KTML, annual report, 2012).

1.3 History of Pakistan Textile Industry

The textile sector enjoys a pivotal position in the exports of Pakistan. In Asia, Pakistan is the 8thlargest exporter of textile products. The contribution of this industry to the total GDP is 8.5%. It provides employment to about 15 million people, 30% of the country work force of about 49million. The annual volume of total world textile trade is US$18 trillion which is growing at 2.5 percent. Out of it, Pakistans share is less than one per cent. The development of the Manufacturing Sector has been given the highest priority since Pakistans founding with major stress on Agro-Based Industries. For Pakistan which was one of the leading producers of cotton in the world, the development of a Textile Industry making full use of its abundant resources of cotton has been a priority area towards industrialization. At present, there are 1,221 ginning units, 442 spinning units, 124 large spinning units and 425 small units which produce textile products. The industry consists of large-scale organized sector and a highly fragmented cottage / small-scale sector. The various sectors that are a part of the textile value chain are: Spinning, most of the spinning industry operates in an organized manner with in-house weaving, dying and finishing facilities. Weaving comprises of small and medium sized entities. The processing sector, comprising dyeing, printing and finishing sub-sectors, only a part of this sector is operating in an organized state, able to process large quantities while the rest of the units operate as small and medium sized units. The printing segment dominates the overall processing industry followed by textile dyeing and fabric bleaching. The garments manufacturing segment generates the highest employment within the textile value chain. Over 75% of the units comprise small

sized units. The knitwear industry mostly consists of factories operating as integrated units (knitting + processing+ making up facilities). The clothing sectors both woven and knits are mainly clustering in Karachi Lahore and Faisalabad where sufficient ladies labor is available. Pakistan is the worlds 4th largest producer and 3rd largest consumer of cotton. The Textile and Clothing Industry has been the main driver of the economy for the last 50 years in terms of foreign currency earnings and jobs creation. The Textile and Clothing Industry will continue to be an important engine for future growth of the economy; there is no alternative industry or service sector that has the potential to benefit the economy with foreign currency earnings and new job creation, especially if synergy is developed amongst different sub sectors and efforts are made to aggressively grow the Ready made Clothing Sector. Pakistans Textile Industry had proved its strength in global market during the last four decades. It has proved its strength even in post quota era by not only sustaining its position but, also showing growth during 2005 to 2007, but declined to $11.1 billion in 2008 due to financial and economic melt down globally. The Garment Sector & especially the Knit Garment Sector need special focus in future policies. (http://horizonpak.com/db/Reports/research.pdf,). Table : Export of Textile and Clothing (Us $ millions)

(http://horizonpak.com/db/Reports/research.pdf,).

The word textile, originated from Latin texere, which means "to weave", "to braid" or "to construct". Textiles process involves spinning of cotton and raw wool fiber on a spinning wheel to produce long strands yarn. Yarn is further put through the steps of weaving, knitting, crocheting, knotting, or pressing fibres together to get the end product cloth. As shown in the figure, Spinning is the first process in the cotton value chain that adds value to cotton by converting it into a new product i.e. from ginned cotton into cotton yarn. This yarn is further processed through weaving and knitting to produce fabric. The process of weaving collects the two distinct sets of yarn warp and weft in a way that warp threads run lengthways on the piece of cloth, and the weft threads are inserted over-and-under the warp threads to make a fabric. Whereas knitting is the process of producing two dimensional fabric through one dimensional yarn. In contrast to weaving, knitting does not have straight, parallel running yarn, rather it follows a meandering path, forming symmetric loops symmetrically above and below the mean path of the yarn. These loops are stretchable giving elasticity to the knitted fabric. Provided the type of yarn and the knitting pattern, knitted garments can be stretched as much as 500%. Therefore, knitted fabric is used in stretchable garments, such as socks and hosiery. (http://www.pacra.com.pk/pages/research/archive/sector_study/textile/Study/Textile_SS_Dec_12 .pdf)

Origination of cotton cultivation in subcontinent:

The origination of cotton cultivation and production of textile in the subcontinent5 is traced back to the 4th and 5th millennium B.C. in Indus valley civilization as the indigenous variety of cotton - Desi Cotton, has been produced since that period. The residuals of actual textile and textile material, tools and instruments used in manufacturing textiles, all divulge presence of textile in the Valley. In the early 20th century, another variety of cotton - American Cotton, was

introduced in this region by the British ruling at that time. Initially this variety was imported from the North American continent. However, in 1917, this was cross-breeded with the Desi cotton. The first test-cultivation of the new genetically modified seed 3F, was made in South Western Indian regions by a renowned cotton breeder - Dr. Mohammad Afzal. Biologically, cotton is perennial plant that grows in the forests; nevertheless, with the technological developments, its cultivation period turned seasonal generating higher productivity.
In 1947, independence of subcontinent from the British rule and its division in two independent countries Pakistan and India, opened new avenues for the textile sector. Pakistan then, comprised two areas, East Pakistan (now called Bangladesh) and West Pakistan. The West was the cotton producing area and the East was for jute production. At the time of partition, East Pakistan received only 90 cotton mills out of 389 mills of erstwhile undivided Bengal. Whereas, West Pakistan was left without any industrial setup and inherited merely three textile mills, Colony Mills Limited in Multan, Okara Textile at Okara and Lyallpur Cotton Mill in Faisalabad [formerly Lyallpur]. During 50s, with the more area coming under cultivation, cotton production expended rapidly. In the meantime, under the Open General Licensing [OGL] scheme, Pakistans business community imported plants and machinery. This led to the establishment of Star Textile Mills Limited, Gul Ahmed Textile Mills Limited in Karachi, Kohinoor at Rawalpindi, Nishat and Crescent Textile in Faisalabad. With the Establishment of the Central Cotton Research Institute in Multan in 1970, cotton breeding process attained momentum in the country. Pakistan started exporting printed fabrics in the late 70s to Africa and by mid 80s was sending printed material to Europe.

(http://www.pacra.com.pk/pages/research/archive/sector_study/textile/Study/Textile_SS_Dec_12 .pdf).

1.4

I mp a c t o f t e x t i l e i n d u s t r y o n Pa ki s t a n e c on o my

Pakistans textile industry is a major contributor to the national economy in terms of exports and employment. Pakistan holds the distinction of being the worlds 4th largest producer of cotton as well as the 3rd largest consumer in the world.
TEXTILE INDUSTRYS ECONOMIC CONTRIBUTION Exports 60% Manufacturing 46%

Employment 38%

Source: Economic Survey of Pakistan

(http://www.rcci.org.pk/wp-content/uploads/2012/12/gtopti.pdf) Textile sector is considered as the backbone of the economy. On the other hand, it is facing tough competition in the international market due to increase in cost of production, which is making it less competitive than the neighboring countries India, Bangladesh & China. According to Pakistan Textile Journal, Pakistan is among top 10 textile exporters of the world. Textile export of world over is about $400 billion out of which China tops the list with present export of $55 billion, followed by Hong Kong $38 billion, Korea $35 billion, Taiwan $16 billion and Indonesia, India, Bangladesh and Pakistan $11billion each. During FY 2010-2011 textile exports of Pakistan have continued to grow in the first nine months. According to the Federal Bureau of Statistics (FBS) and the Trade Development Authority of Pakistan TDAP, textile exports grew by 30.38% from July 2010 to March 2011. It showed a positive sign in the constant dwindling textile industry of Pakistan; however this increase can be attributed to the rise in the price of cotton and other inputs along with a significant increase in terms of quantity as well.

Trend of Textile Industry during last 10 years

YEARS 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-2011 GROWTH 4.10% 5.20% 20% 24.50% 11.23% 8.40% 4.05% -0.70% -1.78% 1%

Source: Economic Survey of Pakistan

(http://www.rcci.org.pk/wp-content/uploads/2012/12/gtopti.pdf)

Economic Contributions Any development in the country does not restrict its effects to one or two sectors rather; the implications of any such development can be felt across multi-sector pathways. Same has been the case with Textile sector. Here, the discussion is limited to the contributions and effects of development in Textile industry to the Economic and Social spheres of the country.
(http://www.slideshare.net/uuroosa/analysis-of-textile-industry-of-pakistan)

Increase in National Income Any development in the industrial sectors greatly contributes to the Gross Domestic Product of country. Currently, Textile sector alone contributes 9.5% to the GDP. Development of industrial

sector means more investment, employment and production and hence, higher contribution towards GDP. Contribution to taxes The textile industry's overall contribution of taxes in 2011-12 is expected to reach Rs. 23.5 billion, including payments of withholding taxes and applicability of lower rate of sales tax of 4%-6% on local supplies. Textile exports stood at $12.5 billion from July 2010 to May 2011. During the current fiscal year, the tax department collected Rs. 10.5 billion as 1.0% withholding tax. Similarly, textile industry contributed Rs. 2.5 billion at the rate of 0.25% as Export Development Fund (EDF). Break-up shows that the applicability of lower rate of 4%-6% sales tax on local supplies would contribute an additional amount of Rs. 11 billion, annually, to the national exchequer. Moreover, the collection of withholding tax amounted to Rs. 10.5 billion during ongoing fiscal year.

Economic Stability Growth in Textile sector has immensely contributed towards economic stability of the country. This sector alone employs 15 million work force of the country. Moreover, when the finished goods are domestically available, it helps keep prices down and fluctuations due to international market influences are less likely to strike populace. Improvement in Balance of Payments Textile industry has brought structural changes in the pattern of foreign trade of the country. Today, the Textile sector account for about US$ 10.2 billion export of the country. On one hand, this sector helps reduce import bills of textile products and on the other hand, it contributes in

earning foreign exchange thereby helping towards keeping balance of payment in control. Following table presents a comparison of years 2008-09 and 2009-10 with respect to exports of different textile products. Agricultural Development Development in Textile sector greatly affected the agricultural development in turn. It is evident from the fact that if number of textile mills increased from 3 to 600 and spindles from about 177,000 to 805 million respectively in 1947 to 2010 then cotton 15 bales increased from 1.1 million bales in 1947 to 10 million bales by 2010. Increased demand of cotton contributed towards better life of farmer by offering greater market for the raw material. Greater Employment As already mentioned, this sector employs about 15 million or 38 percent of total workforce of the country. If the employment rate is added with the upstream and downstream employment, like in agriculture or export related work opportunities due to this sector then the economic effect of this sector increased manifold. Collateral Industrial Development Development of one industry leads to the development and expansion of other industries. A number of industries and work opportunities are directly or indirectly related with Textile Sector. For example, colors and dies, plastics, printing, machinery etc are equally affected by booms or busts in Textile sector. Enhanced Government Revenues Any industrial development is bound to increase government revenues. Though textile sector is still zero rated for the purposes of sales tax on exports yet the tax on domestic supply and income tax contribute greatly to government revenues.

Diversification of Economy Development in textile sector has helped in diversifying economy by reducing dependence on more production and export of raw material. It also instilled diversification by stimulating collateral industrial development. Pakistans economy relies heavily on its cotton and textile sectors. The cotton-processing and textile industries make up almost half of the countrys manufacturing base, while cotton is Pakistans principal industrial crop, supplying critical income to rural households. Altogether, the cotton-textile sectors account for 11 percent of GDP and 60 percent of export receipts. According to the economic survey of Pakistan2008-09 the Pakistan textile industry contributes more than 60% to the country total exports, which amounts to around 5.2billion US dollars. According to the 2012 Economic Survey of Pakistan, issued by the finance ministry, the textile industry itself constituted about 4% of the total size of the economy. (http://www.slideshare.net/uuroosa/analysis-of-textile-industry-of-pakistan)

1.5 Main Issues and Problems of Textile Industry

Textile industry currently faces massive challenges. Despite introduction of five-year Textile Policy, implementation is yet to be seen. This implies high policy risk for the sector. Moreover, efforts to achieve preferential access to EU market are materialized, but the legislation has been challenged by competing EU countries. Rising cotton prices have pushed raw material costs substantially high, making it difficult for small players in the industry to survive.2 In addition to that power loom sector is affected mainly by poor technology, scarcity of quality yarn and lack of institutional financing, hindering its development from unorganized sector to an organized

one. However, notwithstanding its important role, currently the Textile Industry of Pakistan is facing multiple problems that are discussed below: Power and Energy Crisis Power and energy is an essential factor for the production process, for further sustentation of textile sector, energy sector should be improved. It is very difficult to continue production process without energy. As for as Pakistani textile sector is concern it is faced 8 to 10 hours electric load shading per day and 2 to 4 days Gas load shading per week. Electricity Crisis The power supply totally detached in Punjab and other places of the industrial areas of Pakistan. Due to that the production process has been stopped on a large scale industrial unit that outside the industrial estates in particular province as power shortfall gap crossed 5000 Mega Watts. The industrialists of Punjab were going on strike and shutting down there production in agitation, the textile worker came on the roads to protest against electricity load shading in all key textile hubs across the Punjab. Mr. Shahzad Ali Khan Chairman All Pakistan Textile Mills Association Punjab and central chairman Mr. Ahsan Bashir educated that the textile industry of Punjab became in heavy pressure due to energy crisis and industry is directed towards forced closure, they told that the load shedding of electricity has amplified to 8 hours per day. The electricity distribution to textile industry has arrived at an alarming level and it is disturbing strongly to the industrial potential of earning which is about $ one billion each month and also providing vacancies to millions of workers in Punjab. According to chairman All Pakistan Textile Mills Association Punjab Shahzad Ali Khan addressed that total demand of electric power in Pakistan is less than 11000Maga Watts, it is not much difficult to meet the target of the demand, and the target can be met by thermal generation

but still textile industry is faced long duration load shedding, started from May 2012 and it is increasing on daily basis. Today the circumstances became worst and it became difficult to continue the production process for textile industries of Pakistan. (http://www.kasbit.edu.pk/KBJVol_5/5%20Walayat%20Shah%20%20Pakistan%20Textile%20I ndustry%20Facing%20New%20Challenges.pdf) Gas Shortage There is also gas shortening to the textile industry. The supply of Gas for confined generations already cut down to 6 hours a day in a week for the domestic level customer. In the beginning the textile industry has been exempted from gas load shading but unfortunately recently that facility is not much available, in winter the demand of gas increases from domestic users of gas due to that it causes the shortage of gas to the textile units. If all CNG stations of the country diverted to LPG and the gas is converted to the large scale industries like textile industry of Pakistan and the Fertilizer industry, an industrial forum to prove the importance of gas supply to industries for the growth of country has put forward a proposal but due to the social and political situations it couldnt materialized. However government of Pakistan should take corrective and preventive actions to solve the energy crisis faced by the textile industry of Pakistan. Increasing Raw Material Prices Increasing yarn and raw material prices is also a gigantic challenge for the textile industry of Pakistan. The main cause of increasing raw material prices is that the grower of cotton or farmers of raw material, like cotton are unable to get of their material and middle man enjoys benefits and they are not given the reasonable prices for the raw material may times in Sindh and Punjab

farmers burned there cotton to record a strike and the middle man is enjoying the benefits due to that the industry is bearing the costly raw material thats why they started to grow the substitute of cotton like sugarcane etc. In this cause the government and the concerning institutions of government should study the case to solve the problems like this so that the Pakistani textile industry could compete in the global market as a major player because the cost of product is dependable on the prices of raw material. Law & Order Situations in the Country Since 2007, approximately 2118 people of the state have killed in sectarian violence, and 4025 have been injured. Government has consistently failed to protect the lives as well as property of people of Pakistan. In Karachi on overage at least six people were killed per day according to a local newspaper during the firing and cause target killing. Street crimes, snatching from people, kidnapping for ransoms all these issues disturb the business environment especially to compete in the global market with Pakistani competitors. The government should take enormous actions to protect the state and economy of Pakistan. Many industrialists closed their units and moved to neighborhood countries to save there selves from ransoms and many other such kind of issues. Lack of R&D Institutions There is a very tough competition in global markets. The market needs high quality product on reasonable price. To improve the quality of Pakistani textile products the industry should consider on the quality of raw material by the help of research and development institution. Any forum (like APTMA or any other concerning institution) should do work with the help of R&D Institutions to improve the quality of Pakistani cotton by arguing or by providing ideas to the

cultivators of cotton to improve the fiber quality. Once the quality improved the product can easily compete in international markets. Lack of Modern Equipment and Machinery It is also necessary that Pakistani textile industry should be equipped with the modernized machinery to develop quality product and for the innovation of existing products to bust the sale in existing markets and to find new markets all over the globe. Increasing Cost of Production Production cost of textile industry has increased due to rising interest rates and rising inflation as well as declining value of Pakistani currency. It became a gigantic challenge for the textile industry of Pakistan to compete and survive in the international markets. Lack of New Investments The textile industry of Pakistan is faced enormous challenges of stumpy production caused by its superseded textile equipment and machines. To take over this issue the industry needs new investments. There is not any new heavy investment in this sector for a long time. Due to current circumstances of Pakistan nobody is interested to invest in Pakistan. Reasoning to that it seems difficult for Pakistani textile to compete in the international markets. (http://www.kasbit.edu.pk/KBJVol_5/5%20Walayat%20Shah%20%20Pakistan%20Textile%20I ndustry%20Facing%20New%20Challenges.pdf)

1.6 Project Objectives

Application of strategic management in organizations The process of strategies formulations in organizations

The process of strategies implementations in organizations The evaluation of strategies in organizations

1.7

Significance Researchers Acedemations Managers Government

1.8

Project outline:

In this project we apply strategic management on organizations for to better understanding of management. This project is not helpful for only students, by these managers and researchers also get benefit for these types of organizations. We are dividing project into some chapters; in each chapter we explained different topics of this industry with relation strategic management. In chapter one explained the basic introduction of our project, project objectives, background of our industry and its main issues and problems, the impact of this industry in the economy of Pakistan. At the end of this we are giving some suggestions for researchers, managers, teachers, policy makers and government. In chapter two the literature review and methodology of research is explained and use the analysis techniques. In chapter three explained research type, research procedure, data collection method, data analysis techniques. Chapter four of project explained internal & external audit, the selection, implementation and evaluation of strategic management with relation of strategic management to this industry.

Chapter five of project is the end of project in which we give the conclusion and recommendations for researchers, managers, teachers, policy makers and government.

1.9

Chapter Summary:

In this chapter we explained the introduction of our project and objectives of this project. The main objective is this we want to implement our theoretical study with this textile industry. The textile industry is play very important role in the history of Pakistan economy. With the completing of project we were seeing the some important points of this industry.