1 TABLEIntroduction

OF CONTENTS Page
2
no
1.1 Nishat Group 3
1.2 Company 7
2.1 vision 8
2.2 Major competitors 9
2.3 Industry evolution 10
2.4 Strategy followed 10
2.5 Human Resources and Corporation culture 12

3 Strategies formulated 14
3.1 Industry structure 14
3.2 Corporate strategy 15
Strategies adopted for Marketing Human resource and
3.4 17
Finance
4.0 Strategy implementation 20
4.1 Organizational structure
4,2 Matching manager to strategy
4.3 Quality Control
5.0 EVALUATION AND CONTROL 22
5.0.1 Design control
Swot Analysis & Pest Analysis 24-31
Porter Five forces model for Nishat mills ltd 32
Conclusion 34
Recommendation 35
References 36
1. Introduction

The Textile Industry:

Over the years, Pakistan is said to be the single crop economy i.e. cotton and textile
that claims the lion's share in terms of the contribution
in the national economy of Pakistan.

Despite efforts to bring in diversification in country's

overall economic get-up the textile sector continues to
be the most important segment of the national
economy. Its share in the economy, in terms of GDP,
exports, employment, foreign exchange earnings,
investment and revenue generation altogether placed the textile industry as the
single largest determinant of the economic growth of the country.

Despite harsh and hard international economic conditions, Pakistan's textile

industry has weathered the storm by coming out of the international crisis in a very
positive manner.

During the year exports were controlled from falling and significant investment was
made in value-added expansion and in Balancing-Modernization- Replacement
(BMR).

Besides fall out of the events of September 11, the implementation of WTO's
agreement, various bilateral agreements have been signed and implemented.

As a result global scenario has changed. Government and the corporate

textile sector adjusted their policies to achieve maximum benefits of free trade. So,

Nishat Mills Limited 2

local structure of the corporate culture, investment pattern and fiscal and monetary
policies were significantly changed.

1.1. Nishat Group

*The Nishat Group* Mian Muhammad Mansha Yaha is the captain of this splendid
ship having around 30 companies on board. Mansha, who owns the Muslim
Commercial Bank as well, is now setting up a billion rupee ($ 17 m) paper sack
project too. He is one of the richest Pakistanis around. Nishat Group was country's
15th richest family in 1970, 6th in 1990 and Number 1 in 1997. Mansha is on
the board of nearly 50 companies. Chinioti by clan, Mansha is married to
Yousaf Saigol's daughter.

He is deemed to have made investments in many bourses, currency and metal

exchanges both within and outside Pakistan. He has had his share of luck on many
occasions in life and has recently been awarded Pakistan's highest civil award by
President Musharraf. He could have bought the United Bank too, but then who
doesn't have adversaries. Nishat Group of comprises of textiles, cement, leasing,
insurance and management companies. If Mansha was bitten by Bhutto's
nationalization stint of 1970, his friends think he was compensated by Nawaz
Sharif's denationalization programme to a very good effect. There is no stopping
Mansha and he is still on the move!

The history of Nishat Group dates back to 1951, when Mian Muhammad Yahya
founded Nishat Mills Limited.

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This man of vision, courage and integrity, Mian Mohammad Yahya was born in
1918 in Chiniot. In 1947 when he was running leather business in Calcutta, he
witnessed by the momentous changes that swept the Indo-Pak subcontinent.

This is story of success through sheer hard work and an undaunted spirit of
enterprise. Beginning with a cotton export house, he soon branched out in to
ginning, cotton and jute textiles, chemicals and insurance. He was elected Chairman
of all Pakistan Textile Mills Association. He died in 1969, at the age of 51 having
achieved so much in so short time.

After almost half a century of undaunted success, Nishat group is among the
leading business houses of the country and ranks among the top 5 groups in terms
of assets and sales revenue. The group has its roots firmly planted into four core
business namely

Textiles

Power Generation

Banking

Cement

Nishat Mills Limited 4

TEXTILES

The textile business is further subdivided into 2-textile division:

Nishat Faislabad

Nishat Chunian

The textile capacity of the group is the largest in the country. An addition of 20,000
new spindles, 100 new air jet looms and new dyeing plants has increased the
existing capacity of 242,000 spindles, 740 looms and dyeing and finishing capacity
of 5 million meters. The largest exporters of textile products from Pakistan, for
more then decade!

POWER GENERATION

Nishat group has also been a pioneer in power generation in the private sector of
the country. Nishat setup the first power generation unit in the private sector in
1995.

CEMENT

In 1992, Nishat Group acquired D.G Khan Cement Company Limited (DGKCC)
from the second largest project of the group and is ideally located in the heart of the
country, with easy access to transportation all over Pakistan. DGKCC unit No. 1
has a capacity of 2,200 tons per day. A new unit heaving the capacity of 3,300 tons
was setup in 1997.

Nishat Mills Limited 5

International Finance Corporation and common Wealth Development Corporation
have financed this unit. With the addition of unit No.2, DGKCC has become the
largest manufacturer of cement in Pakistan.

BANK

In 1991, Nishat Group ventured into the financial sector through the acquisition of
Muslim commercial Bank. MCB has grown ever since and is now the largest bank
in the private sector. MCB has a network of over 1200 branches employing over
12,000 people.

Nishat Mills Limited 6

 1.2. The Company

Nishat Mills Limited is a public Limited Company incorporated in Pakistan under

the Companies Act, 1913(Now Companies Ordinance, 1984) and listed on Stock
Exchanges in Pakistan

Nishat Mills

Nishat Mills Limited (“Nishat”) is a public company incorporated in Pakistan and

listed on all three Pakistani stock exchanges. Nishat is engaged in textile
manufacturing.

Which involves spinning, combing, weaving, bleaching, dyeing, and printing,

stitching, buying, and selling of textiles? They deal with yarn, linen, cloth and other
goods including fabrics made from raw cotton, synthetic fiber and cloth.

The Company is engaged in the business of textile manufacturing and of spinning,

combing, weaving, bleaching, dyeing printing, stitching, buying, selling and
otherwise dealing in yarn, linen, cloth and other goods and fabrics made from raw
cotton, synthetic fiber and cloth, and to generate, accumulate, distribute and supply
electricity.

Company is providing quality products to its customers within the Pakistan and
outside the Pakistan. Presently company is exporting its all kinds if apparel
products.

Nishat Mills Limited 7

　

2.1 Vision

　To transform the company into a modern and dynamic yarn, cloth and processed
cloth and finished product manufacturing company with highly professionals and
fully equipped to play a meaningful role on sustain able basis in the economy of
Pakistan.

To transform the company into a modern and dynamic power generating

company with highly professionals and fully equipped to play a meaningful role on
sustainable basis in the economy of Pakistan.

Mission

　 To provide quality products to customers and explore new markets to

promote/expand sales of the company through good governance and foster a sound
and dynamic team, so as to achieve optimum prices of products of the company for
sustainable and equitable growth and prosperity of the company.

Quality Policy

Nishat Mills Limited 8

 　We work together as a team for implementation and continual improvement of
total quality system in order to achieve satisfaction of our internal and external
customers

2.2 Major competitors

Nishat competitors are

Crescent

Chenab

Arzoo

Alkarms

Sitara

Kohinoor

Amtex

But main competitors of Nishat Mill are

“Crescent Textile Mills”

“Chenab Textile”

Nishat Textile Limited has seven spinning units situated in Faisalabad. These units
are equipped with the latest machines in all of their departments. In the spinning

Nishat Mills Limited 9

units the fiber is converted into yarn, and as this the quality of yarn is very
important in the textile sector so spinning units have a lot of importance.

Spinning Singeing Printing

Weaving
Desizing Dyeing

Grey Room
Scouring Finishing

PROCESSING Bleaching
Folding

2.3 Industry Evolution

The Industry in which Nishat mill is operating is an consolidated

industry –which is dominated by few large firms as mentioned above .

Strategic groups

It’s a set of business unit or firms that pursue similar strategies with
similar resources. Categorizing firms in any one industry into a set of
strategic group is very useful as a way to better understanding the
competitive environment.

So in textile industry the Nishat mill and chenab textile is a strategic group
because they, to some extent pursue the same strategies for marketing, and
act as a prospectors due to broad product line and they focus on product
innovation and market opportunities.

Competitive intelligence

It’s a formal program of gathering information about the

competitors. However the situation is changing so the fastest growing
Nishat Mills Limited 10
intelligence system is necessary for every firm. The intelligence system of
Nishat mills is the reverse engineering process, Industrial espionage.

Forecasting Technique

The forecasting technique used by firm are Brain storming in which

the people sits and share knowledge about what is happening in the industry.

Expert opinion is another technique used in which the experts are called
from other firms or they may be the ex-managers of the same company and
their opinion is taken about coming trends in industry.

2.4Strategy Followed

The strategy followed currently is Differentiation Strategy

A differentiation strategy calls for the development of a product or

service that offers unique attributes that are valued by customers and that
customers perceive to be better than or different from the products of the
competition. The value added by the uniqueness of the product may allow
the firm to charge a premium price for it. The firm hopes that the higher
price will more than cover the extra costs incurred in offering the unique
product. Because of the product's unique attributes, if suppliers increase their
prices the firm may be able to pass along the costs to its customers who
cannot find substitute products easily.

The benefit of this strategy for Nishat mills are

Nishat Mills Limited 11

 • Access to leading scientific research.
• Highly skilled and creative product development team.
• Strong sales team with the ability to successfully communicate the
perceived strengths of the product.
• Corporate reputation for quality and innovation.

2.5 Human Resources and Corporation

culture
� Lowest Employee Turnover.
� Seeks to fulfill the highest practical degree in
administering its welfare and compensation program.
� Apprenticeship and other training schemes at all levels.
It is our company policy to adopt measures to achieve the following
objectives:
� To obtain, manage, develop, motivate and gain the
commitment of company's key resource- the people
who work in and for it.
� To develop a positive corporate culture to promote
commitment to excellence and quality through out
the company.
� To identify training needs and provide required training
to all categories of employees.
� To make best use of the skills and abilities of all those
employed in the organization.
� To ensure that the company meets its social and legal
responsibilities towards its employees, with particular
Nishat Mills Limited 12
 regard to the conditions of employment, quality of
working life provided for them and the need to
promote environment, occupational health and safety.
� To ensure industrial peace and harmony through
excellent employee relations to achieve optimum level of
employee, productivity and to contribute towards
company's aimed quality standards.

Key resources to gain competitive

advantage

Nishat Mills Limited 13

Their resources has been identified and classified in terms of strength and
weaknesses.

• Their corporate capabilities are much more but those which gives it a
competitive advantage over competitor are
• High quality product and Latest mechanized machinery.

The strategy they are using is differentiation and product development

strategy by taking full advantage of its key resources

3. Strategies Formulated
The strategy formulated by Nishat mills are focus strategy ,First they
were focusing on a narrow segment of cotton only but now they are not only
focusing but also looking to broader segment and pursuing a differentiation
strategy to differentiate their selves from other competitors.

3.1Industry structure
The industry in which nishatll mills is operating is consolidated
industry in which there are few giants companies like sitara ,Chenab etcc.

The tactic they use as an offensive tactic is Frontal Assault which

mean head to head with its competitors because they have superior resources
and willingness to persevere.

3.2Corporate Strategies followed

The strategies usually that nishat mills follow are:

Growth strategies

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 • Vertical integration
• Horizontal integration
• Backward integration

In growth strategies the have been growing Backward by moving on value

chain and becoming supplier their selves.

Horizontal integration by Nishat mills is in such a way that they are

expanding their product line and as well as distributing to more geographical
locations.

Being involved in a forward integration they are their selves the distributor
of their goods manufactured.

Mostly they are involved in Taper integration which the firm produces less
then half of its own requirement and buys the rest from outside suppliers

In recession times the strategies followed by Nishat mills

were:
3.3Stability Strategies
The strategy in which the company stops growing and concentrates or
waits for any change in environment.

• Pause/proceed with caution

A company initiate a change only if there is a change in the

external environment of company or industry.

So nishat mills follows this stratregy in sense that they innovate there
offering only if their competitor intend to do so.

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 • No change strategy

A company doesn’t change its strategy because of the following

reason.

The company is either in ok position.

They don’t have many resources.

There is no hyper competition.

The strategy they are following is profitable.

• Profit strategy

This strategy is followed by Nishat mills when there firm sale is not
normal or you can say declining so what they do is that they try to minimize
there cost like advertisingcost,Expenses,R&Dexpenses,But mostly they
reduce there expenses for shorter period of time because in long run they
may suffer losses.

3.4 Strategies Adopted for

 MARKETING
 HUMAN RESOURCE
 FINACIAL
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Marketing Strategy deals with pricing ,Promotion and sistrin=buting of
goods.The strategies are

MARKET DEVELOPMENT

Product development

Market penetration

Market Skimming

These are al strategies of Marketing but the strategies on which nishat mills
is emphasizing is Product development and Market development by pursuing
these strategies they expand there product line and as well as products to
capture the more and more market

Buyer’s Purchase Order:

Nishat Mills Limited

After the sales contract has been signed by the
both par5ties, the buyer issues the purchase order regarding
the specified design, quality & quantity of the product on
their letter head and signed by the higher authority of the
organization .The purchase order includes date, purchase
no., shipment date, and ref. no. , terms, name of the vendor,
description of the products required.
Strike off program:
In simple words you can say strike off programs
is the samples made according to the customer’s
requirement in order to send him for approval. Sometime the
customers demand the strike off program especially when he

Nishat Mills Limited 17

send his requi4eddesigns are very complex and involved
different color shades.
Then export manager prepares strike off program and issues
it to the different departments. Rotary sampling machine
(Austrian made j-zimmer) which can provide12 meters fresh
strike offs according to the requirements is used .This strike
off is carefully examined before sending it the customer for
approval.

Management of Nishat Mills

Limited
Nishat Mills Limited employees are highly qualified
professionals and have a young , energetic and dedicated
team of professionals who have a lot of knowledge to their
credit.
Managers are responsible for the task assigned to them in
their departments and also have to match whether their
respective department is achieving the desired efficiency
level or not.
There are at least three basic requirements for a successful
company and the managers of Nishat Mill Limited are made
to think on these lines:
1. It must provide a product (good or service) that suits
best to the company’s capabilities and for which there is a
sufficient market.

Nishat Mills Limited 18

2. It must provide the product with consistent quality at a
level that appeals to intended customers and satisfy their
needs.
3. It must provide a product at a cost that always an
adequate profit and a
reasonable sale price

3.4.1Training Programs
Training programs should be there to upgrade
the skills of employees.On the job training programs should
be provided so that workers get knowledge about work

Financial overview

OVERVIEW (December 22 2009): Nishat Mills Limited (NML) is the

largest textile composite unit of Pakistan. It is engaged in the
business of textile manufacturing, spinning, combing, weaving,
bleaching, dyeing, printing, stitching, buying, selling and dealing in
yarn, linen, cloth and other goods and fabrics made from raw cotton,
synthetic fibre and cloth, and to generate, accumulate, distribute and
supply electricity.
Its shares are listed on all the three stock exchanges of the
country. Its manufacturing facilities are located at five different
locations in three districts of Punjab. From the foregoing it can be
seen that it is a gigantic and wider diversified unit and its textile
processing functions are fully integrated with information technology
as business processing is dependent on timely providing information
and data. At NML, the management has built comprehensive

Nishat Mills Limited 19

information systems for all the locations of the company providing
relevant information accurately to ensure thoroughness in decision-
making and managing company s resources. For reliable and
cheaper power, Nishat has installed its power generation plants.
These are cutting-edge technology, highly efficient reciprocating
engines and gas turbine generators, which besides generating power
are supplying steam and air conditioning, being produced using so-
called waste heat to the production units.
In fact, Nishat Mills is the trendsetter in this type of power
generation in the country. On the marketing side it has entrenched
customer bases in Hong Kong and Europe and during the past few
years, it set its goal to achieve greater market share in Central
American, Spanish, French and Portuguese markets which it
managed to achieve

Nishat Mills Limited 20

4.0Strategy Implementation
In implementing a strategy the willingness of people and structure of
organization must be in accordance to implementation of a new strategy.

So talking in context of Nishat mills the implementation of strategy

depend almost on structure of organization because the structure follows
strategy

4.1Organizational Structure
The structure of Nishat mills is Divisional structure managing diverse
product lines in numerous industries. It decentralizes decision making
authority. This organization grow more by diversifying their product line
and expanding to cover wider geographical areas.

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4.2 Matching Manager to strategy

In Matching manger to strategy as discussed in books ,there is no

such implementation in nishat mills about that which manger have to
do which task nor there are different managers for different
strategies.Simply eacg head of the department is responsible for this
own department and no matter however he plans but he must achieve
his objectives.

4.3 Quality control

As the productions starts, the duties of the
merchandisers increase. They not only have to visit the
designing department to ensure that the work is being done
on the designs, the design are made according to the
requirement of the customer, screens are sent to the
printing department on time etc.They also see that fabrics
are being bleached according to the requirement of the
dying and printing. If the fabric goes for dyeing they should
be very careful about color matching in the printing
department. They have to mange the printing on time. They
also have to give the guidelines to the production
department employees. They have to remain in close
contact with the quality control department in each and
Nishat Mills Limited 22
every stage. The merchandiser also ensures that the fabric
has been reached in the finishing department on the time
and that the finishing is done according to the customer
specification (e.g. water repellent, oil repellent, and fire
retardant).

5. EVALUATION AND CONTROL

Evaluation and control of procedures designs and finance is being

held by an internal employee ,some of the control procedure are as
follow.

5.1 DESIGN CONTROL

Design and Development Planning
For designing of products, there should be
specific arrangements. Department of design planning
should be established, if the enterprise want to achieve
quality certificate like ISO 9001 and ISO 9002.
Design review
 Design should be reviewed once made by the firms.
This design should have some characteristics that
should be in accordance with the business practices.
 Verify Validity Of Design Once design is complete, the
competent authority should verify it.

Nishat Mills Limited 23

  Customer Data Control It is the perquisite for ISO 9001
that proper customer data should be there. This is to
provide customers list if required by the top
management.
 Control of Customer Supply Product
 There should be proper control over customer’s
products.
 Product Identification and Traceability
Product should be clearly identified and
traceable. It should have some
characteristics that distinguish it from
others. It should not be similar with other
products in terms of its name, logo etc.
 Inspection
There should be proper inspection of stores
so that every thing functions according to
manners prescribed by certificates.
 Corrective and Preventing Measures
There should be check and balances. If the
mistakes are made, there should be proper
systems so that they are identified and corrected.
Preventing methods should be there.
Nishat Mills Limited
 Internal Audit
There should be strong internal audit. So all
discrepancies should be

Nishat Mills Limited 24

 disclosed. In order to get ISO 9001 there should be
separate internal audit department.
 Training Programs
Training programs should be there to upgrade
the skills of employees. On the job training
programs should be provided so that workers
get knowledge about work.
 Statistical Techniques
Various statistical tools are required to better
controls the affairs of organization. They should be available
to achieve quality awards. Uses of information technology,
automation of factory, Internet and computer technology are
prominent features in achieving ISO 9001 and ISO 900

Nishat Mills Limited 25

 SWOT Analysis

Strengths:
 The major strength of Nishat is its location. The plant is
situated in Faisalabad which is renowned in the world for
textile production.
 Nishat is using the best machinery available in the
market in its all the

Nishat Mills Limited 26

Department, which helps Nishat to produce the world class
products to meet the needs of the customers.
 As Nishat is a part of large industrial group, so it has no
need to search out the raw materials from the market
even during the peak season. For example, they can produce
high quality yarn.
 Nishat management provides an excellent working
environment to its
Employees, which motivate them to work more effectively
and efficiently.
 Nishat has strength to produce the quality products at
the lowest possible prices as compare to their competitors.
 Nishat is an ISO certified company, which produce a
sense of satisfaction to its customers.Nishat also follow the
ISO Standards.
 Quality control department equipped with most modern
machines is also a big
Strength of Nishat, which ensures the quality at every stage
of production. As a result the wastage is very minimal as
compare to competitors.
 Adequate financial resources are also strength of
Nishat. Nishat has the assets of worth about us4.5$ Billion.
 Nishat has highly educated and competent
management and skilled labour which contributed to the
success of Nishat.
 Nishat focuses on the chain stores and other big
customers rather than focusing on the small
Nishat Mills Limited 27
customers.Nishat also focus on the long lasting relations with
the customers. For these reasons its customers are very
loyal.
 Nishat has a good reputation and image in the local as
well as in the
International market, which is also a major strength of
Nishat.

Weaknesses
 NML is purely following the centralized management
style, due to which management has a burden of
decisions, which ultimately takes too much time.
 As most of the machinery is imported from other
countries therefore sometimes few spare parts are not
available in the market which creates problems.
 Although NML pays very high salaries to the top
management, it is not offering attractive salaries to the
other employees of the organization. Therefore the moral
of the employees is decreasing.
 Due to low salaries the rate of turnout is very high
which hinders the growth of the organization.
 The rate of overtime payment to the employees is not
comparable with market. NML is paying at the normal
wage rate for overtime while the overtime rate is always
high in all the organizations.

Nishat Mills Limited 28

 Due to centralized management there is n o delegation
of authority in NML which also hinder motivation of the
employees.
 Less chances of promotion are available for the
employees in NML, which is causing dissatisfaction.

OPPORTUNITIES:
 When the WTO will be implemented, there would be a
great opportunity of increase in exports if NMLl follow the
international standards and provide high quality products to
the customers at competitive prices
 NML should try to implement the latest
ISOstandardsincludingISO14000 series, which will improve
their image and customer satisfaction in the local market as
well as in international market.
 NML can explore the new markets for exports by giving
the different incentives to its employees in the export
department, which will improve its profitability.
 There is a lot of potential in the local market for NiCad’s
products because people believe that Nishat products are
always of high quality. So NML should also focus on local
market.
 Nishat can introduce its garments in the local market by
using the same
Stitching unit. This is also a great opportunity.

Nishat Mills Limited 29

Threats:
 WTO implementation is a good opportunity but it is also
a big threat at the same time it STI fails to provide good
quality and competitive prices to its customers.
 There is no consistency in the government policies
regarding textile sector.
 Incidents like September 11, 2001 attacks would also be
a major threat.
 Political conditions of the country affect both NML and
its customers as well. On one hand it makes reluctant to the management to
make new investments.
On other hand its customers also hesitate before signing
new contacts.
 Increasing rate of electricity and GST are also big
threats.
 Currency fluctuations and exchange rates can also
create problems for NML.

Nishat Mills Limited 30

 Government is focusing on the industrialization and is
giving different
Incentives to the investors. It is also a big threat because the
number of
Competitors will increase.
 More and more competitors (National and International)
are entering in the same markets and offering attractive
pric4es to the customer

　 PEST Analysis

Political Instability.

The political situation of Pakistan is not satisfactory. Due to the rapid

change in the Government every government sets its own new trade policies.

Govt. should apply sustainable policies for the beneficial of the exporters as
well as the investors.

Economic situation:

Nishat Mills Limited 31

The economic condition of Pakistan can also affect the foreign investors
increasing inflation rate make the cost of production high and thus reduce
the profit margin of the investor.

Social situation:

The change in the lifestyle of the people affects the growing demand of the
NTM products. The change in the lifestyle and needs in different
demographics also affect the demand of the customers.

Due to all these changes NTM is performing excellent for the excellence
organization as well as for the customer.

Technological factor:

Technological advancement in all the sectors of the country has changed the
entire socio-economic environment. Especially in the textile sector there is a
lot of technological development.

NTM Excellent computerized machines and devices are installed in the

NTM \has made extension in its present setup by installation of well
advanced technology imported from Japan China and France.

Nishat Mills Limited 32

Porter 5 forces model
Michael porter an authority on competitive advantage contends that a
corporation is most concerned with the intensity of competition with in its
industry. The forces which are discussed by porter are;
 Threat of new Entrants
 Rivalry among existing firms
 Bargaining power of suppliers
 Bargaining power of Buyers
 Threat of substitute products
Explaining each of the force in context on Nishat mills.
Nishat Mills Limited 33
  Threat of new Entrants
For nishat mills there has been a threat of entering new firms, So to
defend themselves from this threat they gain economies of scale
And the other barriers which nishat mills create for entrants are;
Product differentiation
Switching cost
 Rivalry among existing firms
Another threat for nishat mills is the hyper competition in
industry.
The firms currently in the industry are also the threat for nishat mills
because their actions affect the profitability of the nishat mills.
Suppose if one competitor reduce the prices so nishat will also have
to reduce whuch in result will effect the profitability of company.

 Bargaining power of suppliers

The bargaining power of supplier also effect Nishat mills
profitability in such a way that if supplier increase their prices of raw
material so definitely the cost will go up as well .

 Bargaining power of Buyers

The bargaining power of buyers is also a threat for a firm
operating in industry. The buyer effect the profitability ion such away
that he wants discounts and other services which might lower the
margin of profit for the company.
 Threat of substitute products
Nishat Mills Limited 34
 The substitute product means any product which satisfies the
same needs. So substitute products in market are also a major threat
for Nishat mills.

Conclusion

　 Nishat Mills Limited is one of the leading groups in Pakistan. The

system, the management style, the policies & decentralized decision making
environment is really remarkable. This report is basically an attempt to
identify the areas which need to be improved. In this era of technology, the
“Information” is the key to success in the business. This means that the
successful businessman will be who will have the right information at the
right time. This comment leads to the conclusion that the Information
Sharing Process should really be improved.

Nishat Mills Limited 35

 The overall analysis is indicating that the company’s progress has
mainly attained through dedication of employees. The effectiveness of its
management, their willingness to take advantage of opportunities and face
challenges of changing economic picture, this all contributes to the very
much improved and sound position of company. This is really appreciable
for the devotion and hard work of all the employees of the company

Recommendations

Recommendations for Improvements are:

• At present facility of bonus is given only to production staff

but such incentives should also be given to Head office Staff.

• Special incentives should also be given to Head on Eid and

on other special days should be given to the workers.

• Medical facilities are given in mill but such facilities should

also be given to management.

• Different training courses should be arranged for the up

lifting and improving the quality of work for employees

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 • They provide transportation facility to only female employees
I think male should also be provided with conveyance
convenience. This will create the easiness for workers and
reduce the wastage of time.

• There is also a problem of work overload for the employees

and it should be control properly so that the employees are
motivated.

• Employees should be paid extra for the work which they

done after working hours.

References

 Nishat Mills Limited

 www.nishatmillsltd.com
 www.Quickmba.com
 Book: Strategic management and policy
 Author: Thomas L.Wheelen/ J. David Hunger
 Strategic management by Fred R.David
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