Introduction

Farooq garments introduce as a rapidly growing company manufacturers and exporter of

industrial work wear garments. It was established in 1979 and since then they are serving
valued customers very successfully, we believed in good quality at competitive prices,
user requirement is carefully evaluated and specification are made to meet satisfaction.
The reputation for excellence and performance has been earned through many years by
standard quality products.
Business philosophy, professionalism, honesty and hardworking is the core of our
business policy.
It was family business started from only 2 stitching machines by MR. Muhammad Farooq
and Muhammad Farooq is the pioneer of the organization. In 1979 they actually started
this work later in 1993 their two sons started working in the firm. Their first export shipment
was made in 1996. Since 1996 they develop a lot in Middle East they have earned good
name. In Pakistan and mainly Punjab they are one of the leading work wear uniform
manufacturing firm. Now they have more than 100 stitching units and 50 plus machines.

Porter’s Five Forces Model:

1. Bargaining power of Suppliers:

We are taking our supply means fabric greige from different suppliers or companies
and there are number of suppliers to whom we can go to buy our raw material. As we
have number of suppliers so we have more power in bargaining on our suppliers
because we can easily switch between different suppliers on the failure of negotiation.
So we are more powerful than our suppliers in case of bargaining.

2. Bargaining power of Buyers:

As we are exporting our garments in different countries and are exporting in the areas
where the demand is very high and there are many other companies who are also selling
their products in those countries so we can say that we have less bargaining power in
case of buyers because we are exporting our products in different countries and there are
many other exporters from different countries as they are buying from all over the world
and if we will charge them high they will switch to our competitors which will be loss for
us so we can say that we have low bargaining power in case of the buyers.
 3. Threat of new entrants:
We are working from many years and there is a loyalty between buyers and us so
there is a no or very little threat of the new entrants in the industry because when someone
will enter into this industry he will obviously can be a threat for us because of on his low
price because it is the only card on which that company can play and we are giving quality
from many years and we are consistent in our quality and low price so there is a very
minimum level of threat for us in case of new entrants.

4. Rivalry:
As we are working in the industry in which there are a lot of people who are working
so we have rivalry with many companies in our business and the level of rivalry is high
there also remains a competition between us and our competitors.

5. Potential development of substitute products:

There are a lot of companies in our business who are working with the same products
and they are making continuously substitute products and it can be considered as a threat
for our business because it will reduce more our bargaining power on the buyer because
when they will be dissatisfied from our product then they will move towards the substitute
products.

EFE MATRIX:

FACTORS Weight Rating Weighted

Score
Opportunities:
Can take raw material from many sources 0.10 3 0.30
Sell their products to different retailors 0.10 2 0.20
Innovation because of competitors 0.15 3 0.45
Can expand in Euorpeon market 0.15 2 0.3

Threats:
New entrants will affect the sales 0.10 3 0.30
Good substitutes 0.15 1 0.15
Buyers have more sources to buy 0.15 2 0.30
Centralization 0.10 1 0.10
TOTAL WEIGHTED SCORE 1 2.1

Interpretation:
The response on “taking raw materials from many resources” will have a response
of above average (3) because we have many suppliers and it's our opportunity. We gave
rating (2) to the “sell their product to different retailors” it means that we avail the
opportunity as a average. We can also improve our response to this opportunity to the
maximum rating (4).
We gave the rating (1) to the “centralization” because it is maximum threat and our
response to it is poor. We gave rating (3) to the point “new entrant will affect the sale”
because it is main threat and our response to it is above average.

IFE MATRIX

FACTORS Weight Rating Weighted

Score
Strengths
More suppliers to buy 0.15 4 0.60
Low price and high quality 0.15 3 0.45
Continuous innovation in technology 0.15 3 0.45

Weaknesses
Less motivated employee 0.15 2 0.30
Only one manufacturing outlet 0.10 1 0.10
Low employee involvement 0.15 2 0.20
Poor management 0.15 2 0.30

Total weighted score 1 2.4

 Interpretation
The strength avail the maximum rating (4) and minimum rating (3).
We gave the rating (4) to the “more supplier to buy” because it is our major strength. In
this we gave rating (3) to the “continuous improvement in technology” it means this is our
minor strength. It can be improved to the major strength.
We gave the rating (2) to the “less motivated employee” because it is our minor
weakness. We gave the rating (1) to the “one manufacturing outlet” because it is our major
weakness. It means that the point is major weakness but it can be improved to the minor
weakness.