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Principle of Management (Project)

DECLARATION

We hereby declare that this project report on, “Organizational Analysis and
Management pillar of Hajra Hayat”, which is being submitted in partial fulfillment
of the MBA Life Sciences in University of Veterinary and Animal Sciences, is the
result of the work carried out by me, under the guidance of Sir. Attique-ur-Rahman.
I further submit that this project work has not been submitted to the UVAS before or
for any other purpose

ACKNOWLEDGEMENT

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Apart from the efforts of us, the success of this project depends largely on the
encouragement and guidelines of many others. We take this opportunity to express
our gratitude to the people who have been instrumental in the successful completion
of this project. We would like to show our greatest appreciation to Mr. Attique-ur-
Rahman and Hajra Hayat (C.E.O) of Fashion Designing House. We can’t say thank
you enough for their tremendous support and help. We feel motivated and
encouraged every time when attend their meeting. Without their encouragement and
guidance this project would not have materialized.

“Words are inadequate in offering my thanks to the Group Members for their
encouragement and cooperation in carrying out the project work.”

Finally, yet importantly, we would like to express our heartfelt thanks to our
beloved parents for their blessings, our friends/classmates for their help and wishes
for the successful completion of this project.

Table of content
DECLARATION.............................................................................................................................1

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Executive Summary

This work is an introduction to the fashion industry of Pakistan which has made
quite a lot of progress in just a few years. Ten to fifteen years from now, this
industry was still unknown to actually exist to the masses. Later with the formation
of fashion councils and education centers under the enthusiastic few who wanted to
make a difference and promulgate this very institution of fashion, did. The very
fashion industry took its concrete contour from the old tailor culture that formerly
existed. Today it is one of the most progressing industries in the country. The
fashion industry too, is influenced by external forces be the social, political,
economic, technological or even competitive, which serve as a main driver for this

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industry. Moreover, relations with stakeholders - mainly suppliers, distributors and


customers, and the strength and weakness of its competitors also define activities in
the business.

Hajra Hayat studied in Lahore Grammar School and Sacred Heart Convent in
Pakistan. She went to the College of Home Economics and graduated with a
concentration in arts and textiles. She establishes her fashion house in 1998 in
Lahore. Her expertise was in art mediums and knowledge on textile. Her brand’s
inspiration has always been the strong, independent woman of today, whose
elegance and femininity is enhanced by Hajra Hayat’s classic royal creations.

“Hajra Hayat is one of the most well renowned brands of Pakistan.” A company
formed to revolutionize the tailor-culture of apparel making in our society. Hajra
Hayat is a brand that reaches to all sectors of both the traditional and urban female
fashion demand through a unique combination of pricing and the diversity in the
fashion lifestyles that she offers.

Nonetheless, fashion industry assures new arenas of growth and development; new
opportunities for employment. This industry promises a different national projection
that is serene and contemporary. Later, an extensive internal analysis of the company
of concern is carried out, which in this piece of work is Hajra Hayat.

Her lines are so exquisite and Hajra considers it as her strength. With her financial
strength and international presence, Hajra Hayat intends to bring a change in the
local fashion industry.

INTRODUCTION

Fashion in itself is a very abstract term yet it embraces our everyday lives. The term
has many different definitions and interpretations. According to
The American Heritage College Dictionary, fashion is: the prevailing style or
custom, as in dress or behavior; something, such as a garment, that is in the current
mode; the style characteristic of the social elite. Fashion is a social phenomenon
common to many fields of human activity and thinking. To some, fashion is an art
form. To others, it is life. For most people it is a method of utilizing clothing,
accessories and hair. Fashion is a mode to express yourself, to serve as an extension
of your personality, or even to disguise your true self.

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Hajra Hayat is known to design outfits that are ''wearable'' as her outfits are always
aesthetically pragmatic. Despite several innovations in a show, this Lahore-based
designer held in Karachi recently, it was evident that she hasn't deviated much from
her design philosophy. Her work is sought after, both locally and internationally.
Situated in the fashion heartland Lahore, she holds exhibitions locally and abroad.

Hajra Hayat studied in Lahore Grammar School and Sacred Heart Convent in
Pakistan. She went to the College of Home Economics and graduated with a
concentration in arts and textiles. She establishes her fashion house in 1998 in
Lahore. Her expertise was in art mediums and knowledge on textile. Her brand’s
inspiration has always been the strong, independent woman of today, whose
elegance and femininity enhanced by Hajra Hayat’s classic royal creations.

Hajra Hayyat has been the part of Pakistan Fashion Design Council for the very
first day of its conception. She has conducted many national and international shows
in Pakistan but her first solo show in 2004 in Lahore, then wedding Gold 2006 in
Lahore, Rang De 2007 in Karachi. Internationally she has conducted a showcase in
New York, Chicago, and London and in USA

Hajra Hayat has a passion for creating new designs and clothes lines, which has
created a loyal customer base for her amongst the fashion conscious young
generation. Hajra Hayat is a leading fashion brand of Pakistan that has the finest
couture, which is showcased on the ramp every season. Working since last the 11
years, she started her career in the fashion world at the age of 20 from a home office.
After many remarkable fashion shoots and coverage on national and international
magazines, the brand has experienced exponential growth in the last 5 years and has
seen flagship stores open in Lahore, Karachi, Islamabad and soon coming to Dubai.
She isn't one of those to stick out a feather, expose a leg or come up with crazy color
combinations just to attract attention and establish her as a fashion ''visionary''
simply because she's also not a fortuneteller - she is a designer who designs for the
'now'.

Hajra Hayat works on all types of clothing, from cotton,


linen, silk, hand woven khaddar and organdy garments.
She prefers working on colors that are bold and vibrant.
Colors and material that are bland are not her preference.
The cloth is always acquired from the textile hub, Islamabad.
In case if the desired cloth or quality is not available, it is
also imported. The production process at the Hajra Hayat
factory is highly mechanized and up-to-date. She does not

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fear local competition because her processes are highly automated and recent. 200
employees in the factory work on monitoring production and focusing on
embroidery. Though no special MIS software is in place, the company plans to have
one installed soon as market size and demand increases. Moreover, all the activities
in the company’s value-chain is covered by the cost of sale of goods.

Hajra Hayyat has the designer need of ready-to-wear dress line for each age-group
and every occasion catered effectively to. She take care of everyone’s needs and
desires and relies on adequate promotion activities to retain previous as well as
capture more market. Hajra’s prêt line of clothing includes formals, semi-formals,
party line, Mafia line, bridal line and her new MGirl line. Together with this, she
also started her own accessory and jewels line in 2006.

Mafia line: this is a casual, ready to wear line. Mafia is made mostly in pure cottons,
khaddars, lawn, linens and embroidered cottons. This line is primarily day wear
which is affordable and trendy.

Pert Collection: This range is primarily evening wear- slightly more formal, it plays
with exquisite embroideries in resham and crystals on chiffons, silks and georgettes.

Formals: Perfect for wedding needs, this line consists of silks, jamahwars and heavy
hand embroideries in crystals and salma dapka (traditional eastern embroideries)

Hajra Hayyat Brides: A purely couture line which is available only at the bridal
studio in Lahore. It is a made to order line for brides and their families.

Vintage Series: this is the new hip and trendy line by Hajra Hayat offering
everything from clothes to bags and shoes to accessories. It guarantees satisfaction
to the woman who wants it all. It caters to the fun and fearless and is certainly not
for the fainthearted.

Hajra Hayat also holds an international fashion shows at the international level.
Besides being business-minded, Hajra Hayyat is also a socially responsible person.
She holds ramp events at the national as well as international level to help the
deprived class of the society through foundations like Kashf.

Target market of Hajra Hayat will be the “Elite” class and the “Upper middle” class
as only these classes can afford our products and are trendier

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Since the launch of her fashion house, she has been constantly working to promote
her product internationally. At the national level, she has expanded to almost all the
major cities of the country – Lahore, Karachi, and Islamabad. She has plans of
opening her outlet in every city of the country. But her main goal is to export her
product around the world. She wants to make Hajra Hayyat the ‘brand of Pakistan’.
And she has been very successful in doing that.

The company has an independent accountant who is responsible for all the financial
matters of the company. Thought most of the information was confidential, however,
Hajra Hayat’s net profit margin was turn out to be 6.77% after taxes and interest.
And the company’s gross profit margin was found out to be 98.25% which is quite
operative especially in today’s era of economic slowdown. With the pursuance of
her already implemented strategies and adequate control, Hajra Hayat. , no doubt,
can become one of the most successful brands of Pakistan.

Mission Statement

Our Mission is:


 To develop an Ethical Fashion Forum
 To develop a collaborative movement that transform social and environmental
standards in the fashion industry
 To make a broad and fundamental change towards better practices in the
fashion industry within the next 10 years
 To create a clear and consistent system for communication of ethical
standards by fashion businesses

Vision Statement

The raising of consumer awareness in relation to sustainable fashion and to enrich


the local community by introducing unique, locally designed products in a stylish,
modern boutique that retains the thrill of a seasonal market.

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ORGANOGRAM

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ORGANIZATIONAL STRUCTURE

Decision Making Style

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Hajra Hayat used an authoritative decision making style. All research decisions are
made during periodic meetings or by the CEO. However, in lieu of arising need and
global expansion, Hajra Hayat is making decisions on having an R & D department.
Hajra Hayat as the controller all designing and marketing activities take
organization’s key decision about financing, global expansion, etc. However,
production and marketing department have a voice in decisions to make an effective
and efficient result because organization face complex and uncertain environment in
which competitor and technological advancement take lead due to little negligence.
In this situation, R & D department analyze the customer needs and wants,
marketing department ensures that the product will be available at the right time in
right place, so, the provide input in decisions but final decision is taken by the
C.E.O. So the decision making is highly centralized but it is partially decentralized
in some situation.

Organizational Structure
Hajra Hayat’s organization consists of multiple layers of management and thus
forms a taller Organizational Structure. Span of control tend to be Narrow at top
level management. A narrow span of control allows a manager to communicate
quickly with the employees under them and control them more easily. Moreover,
top-level managers have to follow the decisions from the top management and there
lies a clear chain of command as every employee knows his/her responsibility and
they work according to the goals set by the top-level management.

Environment of the head offices is highly formal in which rules and regulation are
strictly followed. At lower level management, rigid rules and regulations are
followed in the organizations and non managerial employees strictly follow the
instruction given by the supervisor. There was clearly defined rules and regulation
about individual’s task, duties, nature of job, etc in organizational rule book.

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Tight supervision and control can create a more conflict situation among employees.
Employees are not skilled, trained and experienced so tight supervision is required.
Less delegation power is given to R& D, production department, and marketing
department in case of emergency when C.E.O was not available.

Departmentalization of Hajra Hayat

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Hajra Hayat’s organization has its own specific way of classifying and grouping
work activities.

It is classified according to:

 Functional Departmentalization
 Product Departmentalization
 Customer Departmentalization

Functional Departmentalization:

Hajra Hayat has developed departments according to a group’s functional activities,


such as the:

1) Research and Development Department


2) Production Department
3) Sales Department
4) Marketing Department
5) Financial Department

Product Departmentalization:

Hajra Hayat has developed departments according to different Product lines, such as
the:

1) Mafia Line

2) Pert Collection

3) Formal

4) Hajra Hayat’s Brides

Mafia line:

This is a casual, ready to wear line. Mafia is made mostly in pure cottons, khaddars,
lawn, linens and embroidered cottons. This line is primarily day wear which is
affordable and trendy.

Pert Collection:

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This range is primarily evening wear- slightly more formal, it plays with exquisite
embroideries in resham and crystals on chiffons, silks and georgettes.

Formals:

Perfect for wedding needs, this line consists of silks, jamahwars and heavy hand
embroideries in crystals and salma dapka (traditional eastern embroideries)

Hajra Hayyat Brides:

A purely couture line which is available only at the bridal studio in Lahore. It is a
made to order line for brides and their families.

Customer Departmentalization:

Hajra Hayat has developed departments according to specific and unique customer
who have common needs or problems that can best be met by having a specialist for
each.

Hajra Hayat has developed her outlets according to two types of customers, such as:

1) Elite class customer


2) Upper middle class Customer

Geographic Departmentalization:

Hajra Hayat has developed departments on the basis of geographic region in order to
carry out the operations and activities of different cities and regions and to keep her
up to date with the latest fashion trends and events across the nation and globe.

Head Office:

Lahore

Regional Outlets:

 Lahore M.M Alam Road. +92-42-5871193


 Islamabad MELANGE, F-6. +92-51-2823819
 Karachi Diamond Gallery, Clifton Road. +92-21-5308391-93

International Outlet:

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 Dubai SOIREE, Al-Wasl Road

Organizational Design

The organizational design of Hajra Hayat’s fashion designing houses tends to be


more mechanistic but less organic (mixture of the organizational designs.) Hajra

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Hayat’s fashion designing houses survive in complex and dynamic environment and
have some characteristic of organic organization. Organization also have some
characteristic of mechanistic organization design because it has rigid and tightly
controlled structure, narrow span of control, centralization, high formulization a
limited information network (mostly downward communication).

Hajra Hayat tends to have the mix characteristics of both Organic and Mechanistic
structure, because at upper level it has narrow span of control and at lower level it
has wide span of control. Organization is highly centralized because the decision
making is highly centralized but it is partially decentralized in some situation. At
lower level management, rigid rules and regulations are followed in the
organizations and non managerial employees strictly follow the instruction given by
the supervisor. At the low-level, the organization tends to be more formalized as,
rules and regulation have been clearly defined and employees have less discretion.
The rules and regulation are not that much strict because there are some rules, which
the employees have to follow in any case, and these rules have been clearly defined
to the employees. Managerial staff at top level management are highly trained and
empowered to handle a diverse job activities and problems and these organizations
frequently use employee teams. They require a minimal formal rules and little direct
supervision. But non- managerial staff at lower level requires a tight supervision and
tend to be follow rigid rules and regulation. Organization is highly flexible, so jobs
can be change according to needs.

Structure of an organization follows strategy. Hajra Hayat’s organizational strategies


tend to be focus on two dimensions:

 Innovation
 Imitation

Innovation reflects the organization’s pursuits of meaningful and unique


innovations. Organic design of organization requires more innovations.

Imitation reflects an organization’s seeking to maximize profits opportunities by


copying the market leaders. Organic design of organization requires more imitation
to mimic the industry’s innovation directions.

The organizational designs of Hajra Hayat’s fashion designing houses have Matrix
Organizational Structure. The matrix organization is an attempt to combine the
advantages of the pure functional structure and the product organizational
structure. Hajra Hayat assigns specialist from different functional area to work on a

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projects (fashion competitions, catwalks, ramps, fashion shows, etc) but when the
project is completed, specialist returns to their departments. Sometimes cross-
functional teams are created to work on a specific project.

Industry Analysis

By definition, industry analysis is business research that focuses on the potential of a


firm. Basically, an industry analysis is conducted to addresses three important
questions:

 Is the industry accessible—in other words, is it a realistic place for a new


venture to enter?

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 Does the industry contain markets that are ripe for innovation or are
underserved?

 Are there positions that will avoid some of the negative attributes of the
industry as a whole? (Barringer & Ireland, 2006)

PEST Analysis

Political forces

These include any change in government laws – tax laws, labor laws, patent laws,
government regulation and deregulation etc, political stability, safety and
environmental protection regulations, international trade regulations etc.

In an apparel industry, there is no substitute for clothes, but there may be a substitute
on the procedure of processing them. Fashion industry, too faces threat of substitute
methods of processing. People, especially in a growing economy can easily get ideas
from designer outfits and get them stitched through a neighborhood tailor instead of
buying it from that very designer due to its high price. On the other hand, local
tailors can give you the same design, though maybe not the same quality at a
comparatively low price.

Pakistan Fashion Design Council was an attempt by twenty five of the country’s top
and established designers to create an infrastructure, a platform on which everyone
could collaborate and represent their ideas and designs at the national and
international level; a place where they could:
 Give structure to the expanding vital industry.
 To liaise with the government bodies on matters pertaining to excise duty,
taxation systems, preferential tariffs for cargo etc., and to work towards
creating a fashion districts.

Political instability in the country in terms of political parties or weakness in


governmental policy can prove chaotic for the industry. Under such condition, this
business, like any other business can be severely affected and eventually shut down.
For e.g., national political parties like MQM and MMA reserve a very unfavorable
attitude towards the fashion industry.

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In case of power, any of these parties can adversely affect or even lead to a ban on
this industry which could prove distressful. Similarly strict trade regulations and
excise policies can affect international exports and hence, increase the overall trade
deficit. Environmental degradation posses a great threat to survival of any industry.
Hence, being a socially and environmentally responsible corporation is an essential
for projecting a positive public image.

Economic Forces

Economic forces that impact an industry’s activities include interest rates, income
levels and earning patterns, price wars, oil, currency and labor markets, inflation,
unemployment, availability of credit, fiscal policies, consumption and spending
propensity – living standards, international trade and cooperation policies etc.

Regulatory policies in the country are not very strong and hence achieving patents
for a product or service is relatively easy. Moreover, the government itself promotes
the setting up of new businesses.

Nowadays, there is a growing trend toward two-income households. Individuals


place an increased premium on time; immediate availability and improved customer
service. Customers are willing to pay more if they can obtain it with ease. There is
an increase in the average standard of living in the country with a decrease in
poverty level of 10.6% during the past four years (Economic Survey of Pakistan
2008-2009). This can serve as an opportunity for the fashion industry to enhance
profit margins through ‘add-ons’ provided that the income levels remain stable.
Changes in interest rates often occur due to changes in the exchange and trade
market. A deficit in trade can account for rise in interest rates.

High inflation can slow down business activities and at time generate no profit at all.
The inflation rate the year 2007-08 was calculated to be 10.3% as compared to the
7.9% last year which shows an increased inflation that disadvantaged business
performance country-wide (Economic Survey of Pakistan 2008-2009).However, in
an economically active country with lower trade barriers, resultant price wars can
increase competition and even and industry’s profit margins provided the industry is
dominant as well as has international presence. Similarly, increased unemployment
can provide an industry opportunity to project a positive image and provide training
and employment to the depressed, hence positively contributing to the economy.

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Socio-Cultural Forces

Factors in the socio-cultural front that can influence an industry’s operations include
demographic trends, cultural changes, environmental patterns, population growth,
business attitude, change in tastes and lifestyles, education, ethical concerns, buying
habits, religion, family, values and attitudes etc.

Pakistan, with a population growth rate of 1.8% is the world’s 6 the most populous
country with an estimated total population of 160.9 million. (Economic Survey of Pakistan
2007-2008) Out of this 74% of the total population of Pakistan lies in age group 15 –
34. However, 70% of the population resides in urban areas. (Federal Bureau of Statistics,
2005). With this came in increase in the literacy rate of the country which increased to
55% in the last four years (Economic Survey of Pakistan 2007-2008). Business activities have
also flourished quite in the recent years, partly owing to foreign competitors entering
the market. This has led to an increased change in the lifestyles and mindsets of
people. There is an increased trend towards nuclear and dual-career families which
serves as great opportunity for the industry as the buying power of the consumer is
enhanced. Moreover, with change in lifestyles comes change in tastes.

Nowadays people prefer using customized products and this is an opportunity for the
fashion industry to pursue its target marketing strategy. Fashion industry is an
industry for the youngsters. With such a large and lucrative target market, this
industry can earn huge profits, provided it sufficiently focuses of their needs and
interests. In view of this, fashion industry collaborated with the PBA (Pakistan
Broadcasters Association) to launch a fashion channel worldwide last year by the
name of ETNL (Style Dunia & Youth) which launched in the country (Pakistan
Broadcasters Association (PBA), 2009).

Religion and ethical preferences too, play a major role in shaping strategies and
marketing products, especially if one moves from culture to culture. Fashion
industry in Pakistan, therefore has to take into consideration the limitations that
ethics, culture and religions imply on clothing nationally as well as internationally.

Technological Forces

Though fashion industry is not technologically driven, but is has now become a
necessity; especially if an industry or company wants to maintain competitive edge
or tap into international arena. The focus of today’s industries is on mass

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customization as well as mass production which are not possible to achieve if it is


inept in technology. Several factors impact an industry’s technological
consideration. These are, Government spending in research, changes in Information
Technology, Internet and Mobile Technology, energy use and costs, and
international transaction costs etc.

Specific Environment Analysis

Customer Analysis:

It involves the examination and evaluation of customers’ needs and wants. At the
time of the company’s start up, Hajra Hayyat researched on the need of fashion
industry, found a considerable target market for her product and then launched the
first Pakistani fashion house. She changed the concept of fashion from the dress of
the working women to everyday wear. Today her clientele are spread across the
globe and includes teenagers to 70 year-olds. Hajra Hayyat takes care of the need of
each and every age group. Her contrast and selection of colors defines that each and
every line is tailored to specific clientele’s needs – wild and bold prints for the
youngsters and neutral and serene ones for adult target market. Her customization to
the needs of the customer is an important variable of success of Hajra Hayyat.

Competitors of Hajra Hayyat

Fashion industry in Pakistan is yet in its progressing stages. It has moved ahead from
being embryonic but hasn’t spurted. However, threat of competitors is still an
important factor that govern the operations of this industry; particularly the rivalry
between fashion designers of Karachi and Lahore in terms of ideals have prompted
every company in the industry to strive to develop a competitive edge and nationally
expand as large as possible. This is mainly because the few designers that exist at
present are equal in size and capability.

The company that study under fashion industry is Hajra Hayyat – the largest fashion
house of Pakistan. The company when formed was the first to start business with a
retail outlet while all her competitors were doing business from home. Today, after
ten years in business, Hajra Hayyat faces competition from direct as well as indirect
sources. A list of her direct competitors include designers like Hasan Shehryar
Yasin, Rizwan Beyg, Generationz, Deepak Perwani, Nomi Shahid, Nikki and Nina,

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Sehyr Saigol, Maheen Khan, Sonya Batla, Maria B, Nayna, Monica Piracha. With
them there are indirect competitors too that pose a threat to Hajra Hayyat. They
include local textile shops, local tailors, and famous brands like Gul Ahmed and
Bareeze that are dealers in un-stitched garments.

Supplier

Bargaining power of suppliers is quite low in Pakistani fashion industry. The major
raw materials required in this case are textiles and embroidery materials. These two
industries – textiles and embroidery are one of the richest and profit producing
industries of the country. Therefore a designer has the power and the choice to
switch among suppliers and even negotiate prices as there are a large number of
suppliers available to provide the same or even better raw materials at negotiable
prices.

SWOT Analysis

External Analysis

The External Analysis examines opportunities and threats that exist in the
environment. Both opportunities and threats exist independently of the firm.
Opportunities refer to favorable conditions in the environment that could produce
rewards for the organization if acted upon properly. That is, opportunities are
situations that exist but must be acted on if the firm is to benefit from them. Threats
refer to conditions or barriers that may prevent the firms from reaching its
objectives.

OPPORTUNITIES THREATS
Expand into Emerging Economies Competitors
Enter New Product Markets New entrants

Acquire More Companies Substitutes

International Sales Economic recession Situation

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Expand Standalone Stores Political situation

Export Opportunities International Economies and trade


restrictions
Increasing trend toward designer cloths Brand Cannibalization

Strategy to be Successful in Market:

Following are the strategies to be adopted to be successful in the market

 Proper care while producing dresses should be adopted


 Proper Inventory management.
 The dress designs should be according to the emerging trends and fashions.
 Designing of dresses according to the consumer tastes/preferences.
 The location of the outlet should be properly selected and attractively
decorated so as to target the consumer effectively.
 The customer satisfaction should be given due importance, because it is the
customer satisfaction, which can increase the sales. Hence, excellent customer
service should be provided.
 Strong relationship with vendor

Internal Analysis

The internal environment of an organization contains the internal resources and


possesses internal capabilities and core competencies. The organization needs to
conduct the internal analysis figure out loopholes in resources, capabilities, and core
competencies. This enables the firm to devise suitable strategies for closing the gaps
in the aforesaid internal components.

Below are a list of all the strengths and weaknesses that are faced by the company.
The strengths are of an advantage to the company while the weaknesses pose threat
and need to be minimized and converted in order to prove beneficial for the
company.

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STRENGTH WEAKNESS

Wide Product Line No mission statement


Strong Brand recognition No written Vision Statement
Decentralized Management Lack of Brand idea Sharing
Diverse Brands Portfolio Weak Advertisement Effort
Financial Strength Rapidly changing the Fashion taste of
people
Easy availability of raw material
Low labor cost

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SWOT Matrix

STRENGTHS WEAKNESS
1: wide product line 1: No mission statement
2: strong brand 2: No written vision
recognition statement
3: decentralized 3: Lack of brand idea
management sharing
3: Diverse brand portfolio 4: Weak advertisement
4: financial strength efforts
OPPORTUNTITIES 1: strong financial 1: Increase print
1: Expand into emerging strength will help to advertisement and e-
economies expand stand alone stores marketing to attract
2: Enter new product to the northern areas of markets like India, China
markets the country as well as as well as the local market.
3: Acquire more enter a new product in
companies market.
4: E-commerce sales 2: Increase online selling
5: Expand stand-alone to California and UK
stores
THREATS 1: Target niche markets in 1: Work on making a
1: Competitors the country that is not written vision and mission
2: New entrants being targeted by statement and project it to
3: Economic recession competitors. make the

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4: Political situation 2: Advertise on brand Hajra Hayat identity.


5: International quality and corporate 2: Increase collaboration,
economies and trade social responsibility to cohesion and idea sharing
restrictions increase customer loyalty. between local designers at
6: Brand cannibalization the platform of the
BOULEVARD.

Management

Management at Hajra Hayat like any other successful company is all about good
planning, organizing, motivating, leading and controlling. The company has a strong
management philosophy that believes is integrity, talent and dedication – if you
can’t make fashion your life, choose another field.

Planning:

Hajra Hayat firmly believes that good and forecasted planning is essential for
achieving a desired goal. Planning is all about preparing for change by bridging the
gap between the present and the future. It enables a company to gather the necessary
resources and carry out tasks in the most efficient manner. At Hajra Hayyat planning
is thoroughly done before the beginning of any new activity or the launch of a new
product. The company also relies on competitive intelligence in order to make
comparative decisions. With no fear on local competition from brands like Hasan
Shehryar, Nomi Ansari, Ammar Bilal, Deepak Parwani, Rizwan Beyg and Nilofer
Shahid etc., the company formulates strategies in view of the international market
and international competitors like Armani, Prada, and Louis Vuitton etc.

Organizing:

Organizing is really important for defining task and authority and effectively and
efficiently allocating resources for any company. At Hajra Hayyat defining line of
authority is important. The company started off with a functional structure with
Hajra being the CEO as well as the controller all designing and marketing activities.
With the company’s expansion across the borders, Hajra Hayyat now is developing

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towards a more divisional structure with line of command spreading internationally.


Since the Hajra Hayyat Accessory launch in 2006, and the company’s aggressive
intensive strategies through market and product development, it won’t be long till
she starts working at each production line separately at the organizational level. At
present, the company employs more than 50 management staff in its outlets across
Pakistan alone.

Allocation of resources is also another important decision for the company. The
company is financed completely by the CEO –Hajra. Moreover, the use of skilled
labor for the job also is carefully selected to give every single piece of work ‘

Leading :

Motivation means influencing people to accomplish specific objectives. Staffing, on


the other hand is the essence of human resource management. It includes activities
of recruiting, interviewing, testing, selecting, orienting, training, developing,
evaluating as well as rewarding. The Hajra Hayyat factory currently employs over
200 workers, all recruited after specific procedures that test there credibility to In
terms of motivations, the company always grants a pay rise every month on the basis
of performance. Moreover, the in lieu of employee safety, every process in the
factory is automated. Training is given to operate the machinery. The production rate
of the factory is the highest among the local designers for formal couture on a
monthly basis.

In terms of motivations, the company always grants a pay rise every month on the
basis of performance. Moreover, the in lieu of employee safety, every process in the
factory is automated. Training is given to operate the machinery.

Controlling:

Controlling at Hajra Hayyat is done through monetary incentives given based on


performance. Employees are first trained and the standards of performance are set.
Individuals meeting these standards are considered for the incentives. The company
believes in its employees as an asset and retaining them is essential if it wishes to
avoid further training and hiring costs. It believes employees become experienced
with time and this increases their loyalty to the company which is very essential
particularly in present times of economic slump.

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Marketing

Marketing can be described as the process of defining, anticipating, creating and


fulfilling customers’ needs and wants for products and/or services. This is exactly
what Hajra Hayat invested upon. The company created the demand of branded
designer clothes through awareness. Hajra Hayat made people shift from the
traditional tailor-culture to demand more. Its heavy marketing approach and use of
appropriate mix of marketing made it develop a brand name, an identity which no
other designer had before.

Product

Hajra Hayyat has the designer need of ready-to-wear dress line for each age-group
and every occasion catered effectively to. She take care of everyone’s needs and
desires and relies on adequate promotion activities to retain previous as well as
capture more market. Hajra’s prêt line of clothing includes formals, semi-formals,
party line, Mafia line, bridal line and her new Vintage line. Together with this, she
also started her own accessory and jewels line in 2006.

Product Mix

Product mix is basically a set of all product offered by the company . the structure of
product mix has both breadth and depth.

Product Breadth:

Mafia line: this is a casual, ready to wear line. Mafia is made mostly in pure cottons,
khaddars, lawn, linens and embroidered cottons. This line is primarily day wear
which is affordable and trendy.

Pert Collection: This range is primarily evening wear- slightly more formal, it plays
with exquisite embroideries in resham and crystals on chiffons, silks and georgettes.

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Formals Range: Perfect for wedding needs, this line consists of silks, jamahwars and
heavy hand embroideries in crystals and salma dapka (traditional eastern
embroideries)

Hajra Hayyat Brides: A purely couture line which is available only at the bridal
studio in Lahore. It is a made to order line for brides and their families.

Vintage Series: this is the new hip and trendy line by Hajra Hayat offering
everything from clothes to bags and shoes to accessories. It guarantees satisfaction
to the woman who wants it all. It caters to the fun and fearless and is certainly not
for the fainthearted.

Product Positioning Strategies:

We used two types of positioning strategies in order to bring attention and to


differentiate our product.

 Positioning in relation to the competitors


 Positioning in relation to price and Quality

Positioning In Relation To the Competitors

First of all, Hajra Hayat understand the strategies of its competitors on what basis
they position their products then she positioned her product directly against the
competition. Our competitors are Hajra Hayat, Hasan Shehryar Yasin, Rizwan Beyg,
Generationz, Deepak Perwani, Nomi Shahid, Nikki and Nina, Sehyr Saigol, Maheen
Khan, Sonya Batla, Maria B, Nayna & Monica Piracha.

Positioning in relation to price and quality

Hajra Hayat basically deal with elite class in which customers are less price sensitive
and more fashion conscious so, they buy new and unique style and design at any
cost. In other words Fashion Conscious people are dying to buy a uniqueness of
style at any cost. She provides a higher quality product at higher price. Price act as
an indicator of quality such as customers are more conscious about the ego-sensitive
product such as branded cloths, perfumes and jewelry, etc. Higher-priced branded
dress is perceived to possess a higher quality.

Product Life Cycle:

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Fashion industry is not yet matured in its life cycle. Fashion product life cycles last a
shorter time than basic product life cycles. By definition, fashion is a style of the
time. A large number of people adopt a style at a particular time. When it is no
longer adopted by many, a fashion product life cycle ends. Fashion products have a
steep decline once they reach their highest sales.
The fad has the shortest life cycle. It is typically a style that is adopted by a
particular sub-culture or younger demographic group for a short period of time.
Apparel products often have a fashion dimension, even if it is just color. As fashion
features increase in a product, the life cycle will decrease. Therefore, we are
designing a fashion product with multiple products lines for introduction as each
fashion product's cycle runs its course.

We build their lines to include basic, fashion, and fad products in order to maximize
sales. For example, in formal wear, she has different styles that have classic styling
and colors and are always in the line. Different additional styles may be modified
every two years to include silhouette, length, and collar changes based on the current
fashion. One or two short-cycle fashion or fad styles based on breaking trends may
be introduced once or twice a year. Styles that a popular celebrity or sports hero is
wearing are examples of fashion and fad styles.
Cycle with in Cycles
Design elements (such as color, texture, silhouettes, or any other embellishment)
may change even though the style itself remains popular. Embellished and unique
belts became a fashion now a day, in late 1960’s it become popular and remain
classics. Therefore, its fashion life cycle is very long because it comes with different
style and design continuously and it remain more or less accepted by an extended
period. In 2000’s it reappears with different styles. Hajra Hayat designed her dresses
with different styles of belt that become more popular in fashion conscious people.
Recurring fashion cycle

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After a fashion and design dies, it may resurface. In this situation Hajra Hayat
borrow the ideas from past. When style reappears year later, then we reinterpreted
for a new time: a silhouettes or proportion may recur, but we usually interpreted it
with new change in fabric and details. Nothing is exactly same. Hajra Hayat usually
inspired by the Nature but she use different fabrics, colors, and details that makes
the look unique to today.

Life Cycle Management


Managing on rise:
When our designs at the height of popularity, it may be such demand that more
manufacturers copy it or produce adaptation of it at many price levels. So in this
situation, Hajra Hayat decided right strategies such as
 Product improvement must be formulated
 Bring innovation in the product
 Enhance our promotions
Managing during Maturity:
Hajra Hayat adopted a common strategy for managing during the maturity stage of
product life cycle such as:
 Modify the product
 Devising a new uses for product
Managing during declining
In this stage, eventually, so many copies are mass-produced that fashion conscious
people tire of the style and begin to look something new. Customer still wear the
garment but they are no longer willing to but them at regular price.
When sales are declining, Hajra Hayat have to adopt such strategies:

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Principle of Management (Project)

 Prune unprofitable sizes and models


 “Run out” the product; that is, cut all the cost to bare minimum to maximum
profitability over a limited remaining life of the product.
Fashion Adoption Process:
Trickle down theory
New style and design are usually expensive and
only few people can afford it. Hajra Hayat
basically deals with upper level and then offers
a high quality product at higher price. When
fashion leaders (designers, celebrities, etc)
worn and adopt a new fashion design the many
peoples are exposed to it and some will desire it
for themselves. To appeal this broader group of
consumers, manufacturer and local tailors
produces many copies of it at lowest prices. In
this situation Hajra Hayat usually modify a
designs and bring new features in it.
The length of this process is influenced by the
location. Design of fashion products implies
newness and freshness. Yet as a fashion design
is copied, modified and sold at lower and lower
prices, it losses its newness, quality and other
essential design elements, so, we continuously
intro duce some modification in our designs
Trickle Up :
In this theory fashion design and style first
become popular at lower level and then flows
upward to become popular at higher level. In
this Hajra Hayat usually conduct different
surveys and pay more attention to consumer
innovations and watch people on the streets to
find ideas. Some of these ideas eventually reach her expectations. Then she designed
these styles with some modification and after that fashion leaders adopted it.
Trickle Across:
Modern communication brings the fashion design and styles from around the world
into our homes instantly. At upper level, most of the customer see trend and want to

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look as fashionable as the celebrities. So, we cater the needs and wants of upper
level.
She will visit an international fashion fair held in Germany every year and analyze
the trends and designs of every country and bring these ideas in our country and
convert these ideas into reality with some modifications.

There is no longer one channel of fashion dissemination. Many separate markets


have developed geared to various age range, lifestyle, taste and pocket books. What
appeals to a junior customer would probably not appeal to a missy customer.

Pricing

Pricing strategies for the apparel industry are generally developed by a combination
of factors such as the type of apparel collection being launched; production costs,
along with the customer base. Hajra Hayat uses a competitive pricing strategy.
Bargaining power of customers is low in this industry. This is because there few

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choices to select from. Designers have there set prices that are quite high and fixed –
they cannot be negotiated upon. If talked about competing brands, a buyer cannot
easily switch to other options. Products are homogenous and the prices may either be
uniform or else a buyer has to trade-off with quality of the product.

Consumer Psychology and Pricing:


Hajra Hayat Understand how consumers arrive at their perceptions of prices is an
important marketing priority and recognize that consumers often actively process
price information, interpreting prices in terms of their knowledge from prior
purchasing experience, formal communications (advertising, sales calls, and
brochures), informal communications (friends, colleagues, or family members), and
point-of-purchase or online resources.

 Image pricing is especially effective (for elite class) with ego-sensitive


products such as branded cloths, perfumes and expensive cars. Hajra Hayat
basically deals with Elite class so the consumer prefers price and quality.
Higher prices of branded suits are perceived to posses a high quality.
 Hajra Hayat priced their product in a "left-to-right" manner rather than by
rounding
Setting the Price

Hajra Hayat mostly set a price for the first time when she develops a new product or
introduces a regular product into a new distribution channel or geographical area.
Hajra Hayat has three price points that is highest price, high price and medium high
price.

 Hajra Hayat basically deals with elite class where customer use price as an
indicator of quality. Customers are more conscious about the ego-sensitive
product such as branded cloths, perfumes and jewelry, etc. Higher-priced
branded dress is perceived to possess a higher quality.

Hajra Hayat uses some factor in setting its pricing policy such as

 Selecting a pricing objective

 Determining demand

 Estimate Cost

 Analyzing competitor, cost prices

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Principle of Management (Project)

 Selecting pricing method

 Selecting the final price

Step 1: Selecting a pricing objective

Hajra Hayat basically offers new, unique, marvelous and unique designs, so, she set
high prices to maximize market skimming. When she introduce new product then,
she priced it at a higher price. When design become common as it is copied by other
designers and in local market tailors then she offer her design in new material and
with new embellishment because high initial price does not attract the market
competitor as well as fashion leader and they started to seek for new designs.

Other objective of pricing is survival in intense competition and changing customer


demand.

Determining demand

Elite classes become more conscious about branded product. In different occasion
and seasons, demand will be drastically increase such as in summer formal and pert
collection of Hajra Hayat sold at higher price. Each price will lead to a different
level of demand and therefore have a different impact on a company's marketing
objectives.

 Customers are less price sensitive and Hajra Hayat charged a higher price than
competitors and still get the business because she convinced a customer that
extra features are added in its designs and also convinced that her designs
offer a lowest total cost of ownership.

 Slight change in price does not affect demand because status, fashion and
brand conscious people buys a dress at any cost.

Step 3: Estimating Cost

Hajra Hayat charged a price that covers its cost of producing, distributing, and
selling the product, including a fair return for its effort and risk. She measure a real
cost associated with serving each customer to estimate real profitability.

Step 4: Analyzing Competitor, Cost Prices and Offers

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Today, after ten years in business, Hajra Hayyat faces competition from direct as
well as indirect sources. A list of her direct competitors include designers like Hasan
Shehryar Yasin, Rizwan Beyg, Generationz, Deepak Perwani, Nomi Shahid, Nikki
and Nina, Sehyr Saigol, Maheen Khan, Sonya Batla, Maria B, Nayna, Monica
Piracha. With them there are indirect competitors too that pose a threat to Hajra
Hayyat. They include local textile shops, local tailors, and famous brands like Gul
Ahmed and Bareeze that are dealers in un-stitched garments.

Hajra Hayat offered a new features in her designs, styles and motives, so, she took a
competitor’s price, cost and possible price reaction into account afterwards, she
evaluate a worth of designs to the customer then added to the competitor price. On
the basis of such information she decided whether she charged more, the same, or
the less than the competitor.

Step 5: Selecting a Pricing Method

Hajra Hayat basically deals with elite class so, she used Going Rate Pricing method.
In this method, she bases its product’s price largely on competitor’s prices and then
she charged same, more or less than the major competitor(s).

Step 6: Selecting the Final Price

Hajra Hayat considered additional factors such as impact of marketing activities,


pricing policy and impact of prices on competitors, then she select a final price.
Hajra Hayat basically uses market-skimming pricing strategy in which she charged
relatively high for new branded designs. The price is usually set at the highest level
so that the most customers will pay for new product.

Brands with high relative quality and high relative advertising obtained higher
prices. When taking a final price decision she considered advertising budget and
product quality in mind. She basically use a geographical pricing method in which
she decided how to price its products to different customer in different locations and
countries.

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Principle of Management (Project)

Suggestions and recommendations

 There are comparatively more growth opportunities for a subordinate as the


number of levels are more.

 Increase print advertisement and e-marketing to attract markets like India,


China as well as the local market.

 Advertise on brand quality and corporate social responsibility to increase


customer loyalty.

 Target niche markets in the country that is not being targeted by competitors
is best opportunity for Hajra Hayat to expand it’s business and earn more
revenues.

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Index

A Decentralized..................................................23
Deepak Parwani...............................................25
Ammar Bilal.....................................................25 Deepak Perwani...................................20, 28, 35
authority..........................................................25 desired goal.....................................................25
B Diverse Brands Portfolio.................................23
E
Brand Cannibalization......................................22
Brand recognition............................................23 Elite...................................................................6
C Emerging Economies.......................................21
emerging trends and fashions.........................22
CEO.................................................................10 environmental patterns...................................19
comparative decisions.....................................25 ethical concerns..............................................19
competitive.........................................19, 20, 25 experienced.................................................5, 26
competitors.........................................19, 20, 25 expertise.......................................................4, 5
Competitors...............................................20, 21 F
controlling.......................................................25
cotton................................................................5 Fashion industry..................................17, 19, 20
customer satisfaction......................................22 Financial Strength...........................................23
D Formals.................................................6, 13, 28

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G P

Generationz.........................................20, 28, 35 Pakistan Fashion Design Council.......................5


global expansion.............................................10 patent laws......................................................17
gross profit margin............................................7 performance....................................................26
Gul Ahmed.................................................21, 35 planning..........................................................25
H Political instability...........................................17
population growth...........................................19
Hajra Hayyat..........5, 6, 7, 13, 20, 25, 26, 27, 28 production.............................................5, 20, 26
hand woven khaddar.........................................5 R
Hasan Shehryar.............................20, 25, 28, 35
human resource management.........................26 R & D department...........................................10
I Rang De 2007...................................................5
resources...................................................25, 26
independent accountant....................................7 Rizwan Beyg..................................20, 25, 28, 35
international fashion shows...............................6 S
L
selecting..........................................................26
labor laws........................................................17 Semi formals.........................................6, 12, 27
Lahore Grammar School................................4, 5 silk.....................................................................5
launch..............................................7, 19, 25, 26 socio-cultural...................................................19
leading........................................................5, 25 solo show..........................................................5
linen..................................................................5 Sonya Batla.........................................21, 28, 35
M special MIS software..........................................6
Standalone Stores...........................................22
Mafia line...............................................6, 12, 27 strategies..................................7, 19, 22, 25, 26
Maheen Khan.......................................21, 28, 35 Substitutes......................................................21
Management.............................................23, 25 T
Maria B............................................6, 21, 28, 35
mission statement...........................................23 task.................................................................25
motivating.......................................................25 tax laws...........................................................17
motivations.....................................................26 Technology......................................................20
N V

net profit margin...............................................7 Vision Statement.............................................23


New Product....................................................21 W
Nikki and Nina.....................................20, 28, 35
Nilofer Shahid..................................................25 Weak Advertisement.......................................23
Nomi Ansari.....................................................25 wedding Gold 2006...........................................5
O Wide Product Line............................................23
,
organdy garments.............................................5
organizing.......................................................25 ,testing............................................................26

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