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OCT 4, 2009
Managerial strategy
Marketing strategy
Marketing activities
Departments
Finance dep.
Purchase dep.
Export dep.
MAIN STORE
Time office
HRM
Financial analysis
Income statement
Balance sheet
Ratio analysis
SWOT analysis
Findings
Suggestions
Conclusion
Preface
Internship is an integral part of MBA program, because it gives us the
practical knowledge of what we have learnt during our study period. This
report is written to fulfill the requirement of MBA degree.
Trading keeps much importance in human life. This practice started
when the human beings thought to live together in the formal way. Small
groups of people came together and small colonies were established. This
change in living style started exchange of the things. So when the first thing
was exchanged the trade was come into being.
Now a day the business environment keeps on changing everywhere.
New dimensions of business are coming before us. These dramatic and
dynamic changes in business world require the specialties about the all
aspects of business of today. Because of these requirements, business
knowledge become important and business education becomes the need
of time. Only he person with latest knowledge can survive in this vast field.
But practical knowledge is also necessary along with the theoretical
knowledge. This made the internship an integral part of MBA. One can see
how the theories and knowledge are being practically implemented. This
report is about Crescent Textile Mills Ltd. I did my internship here for 6
weeks and this report carries the information about history, organizational
structure, marketing strategies and SWOT analysis of Crescent Textile
Mills Ltd.
Crescent textile mills limited a leading organization in textile sector was
assigned to me for internship. This report is about my experience and
knowledge, which I have gained during my internship program. In this
report I have made a humble attempt to express most efficiently and
effectively what I experienced and observe at CTM. I think that this report
will be really helpful for those who want to know about CTM.
Acknowledgement
Countless thanks to almighty Allah, the lord of the whole universe and the
greatest force behind my success in my life. I also pay my heartily to Hazrat
Muhammad (Peace Be Upon Him) whose whole life is marvel and model of
any person belonging to any walk of life.
I feel great pleasure and honor to express my Heartiest gratitude and deep
sense of obligation to my supervisor professor ----------------------- for his
keen interest skillful guidance, enlightened views, unfailing patience,
mastery advice, inspire attitude and valuable suggestions for the
accomplishment of present study. In fact it was not possible to bring this
work to fruitful conclusion with out his day and night persuasive and sincere
efforts.
I pay my gratitude to all other respected teachers at institute of
management sciences, Bahauddin Zakariya University,Multan. Especially
Director of the department “Dr. Muhammad Zafar Ullah”, who is an ideal
personality and it is a great blessing of Allah that we have the opportunity
to learn from him.
I am highly indebted to “-------------------“ who provide me useful information
during the internship program.
I am grateful to those who have directly and indirectly contributed towards
the preparation of this assignment.
Finally I would like to thanks to my adoring parents, for their day and night
prayers, sacrifices, encouragement, moral and financial support through
out the course of study.
Company Profile
Crescent Textile Mills is a Faisalabad based textile unit. The
company was listed at stock exchange in 1951. Crescent Textile Mills is
engaged in the business of textile manufacturing of spinning, weaving,
dyeing, bleaching, printing, made ups and otherwise dealing in yarn and
fabrics.
Flagship of large crescent group, CTM’s main area of business is in textile.
As a composite unit having ISO-9002 certification on 1997, which is
engaged in spinning, weaving, processing and is one of the largest
exporters of cotton yarn in Pakistan. The pioneer of Crescent Textile Mills
was Mian Muhammad Shafi, who belonged to Chinyot. Crescent Textile
Mills started as a weaving unit with 500 semi auto looms. Now the present
picture of Crescent Textile Mills is that it is the one of the largest textile
units in Pakistan.
Now Crescent Textile Mills has seven independent complete units of
spinning, 184 weaving sulzer looms, one separate unit of towel & one
complete unit of garments. Crescent Textile Mills has one of the largest
textile-processing units with a capacity of 2.5 million meters fabric
monthly.
The electricity consumed by Crescent Textile Mills is produced by its own
power station located within the boundary of Crescent Textile Mills. All
spinning, weaving, towel, processing and garment units are located within
the same boundary.
The total no of employees are more than 5000 from which 2000 employees
are staff and on permanent basis. Factory runs complete 24 hrs a day and
employees work in three-day and night shifts of 8 hours.
Crescent Textile Mills was established in 1951 as a private limited
company. Crescent Textile Mills was converted into a public limited
company in 1958. The crescent group effectively controls the company. In
the context of Pakistan, Crescent Textile Mills stands out for the composite
nature of its activities. Superior quality standards with ISO 9002 certificate
management is committed to expand into the higher value added areas of
industry.
Crescent Textile Mills is playing a vital role in the development of Pakistan
specially by earning a huge foreign exchange through exports. Crescent Textile
Mills sells more than 80% of its products to the foreign market. In 1992-93 &
1994, the Crescent Textile Mills was awarded the President of Pakistan Trophy
for export, given to the largest exporter from Pakistan in any category.
Historical Perspective
The Crescent Textile Mills Ltd was incorporated and set up in FSD as a
public limited company. It is one of the fist few textile mills to be established
in the country, and also the first unit of the crescent group. The Crescent
Textile Mills Ltd is situated on Sargodha Road, at an area spread on 115
acres of land; and from the very inception, it had been designed as an
integrated unit. It commenced its business operations in 1951 with 50316
spindles, 500 auto looms and finishing capacity of nearly 4000 meters per
day. In the mid 50’s sponsor of the company decided to divert its
production exclusively towards exports and became the pioneer company
to have commenced export of cloths fromPakistan in 1956.
With the passage of time, the company grew in stature and its sponsors
became to be known as crescent family. The period up to mid 60’s was
also the period of growth of the family businesses as the sponsors/
crescent family diversified their investments to more textile companies,
sugar mills, jute mills, larger trading houses, shipping etc. and so the
crescent family came to be known as the crescent group.
As year’s road on, the Crescent Textile Mills Ltd continued to expand its
exports and earned the reputation of being the leading exporter of yarn,
fabric and various products in the home textile sector. The company’s
prosperity broad about a better quality of life for those who worked for it.
The company provides accommodation for its employees, staff and
executives as well as plays grounds, parks shops, community centers, and
industrial homes for their welfare. It insures that its work force is happy and
their families are well cared of.
In its desired to forge ahead in the competitive field of the home textile
sector, the company has made investments for updating and modernizing
its machinery and equipment and insures training of its employees by hiring
and contracting its experts in textile for its workers for its staff.
As well as sending executives to recognized institutes in the country and
abroad for specialized training in management, accounting, IT and
technical training. It was the first textile company to introduce quality circles
even at the worker’s level and by mid 80’s had graduated to total quality
management and Deming’s 14 points. It was also the first composite
company in Pakistan to obtain ISO 9002 certification and has recently been
certified for “ Oeko-texStandard 100”.
The main architect of the sales in the marketing of the Crescent Textile
Mills Ltd has been its Chief Executive, Mr. Muhammad Anwer, who has led
the company for the front. Besides been awarded every year its highest
sales in yarn and cloth, the C.E has also been recognized as “ the business
man of the year” twice in the year 1993,1994 and 1994,1995 by the
Pakistan federation of Chamber of Commerce and industry. The company
has also been awarded the president of Pakistan export trophy for three
consecutive years in the mid 90’s.
For the year ending in September 2002, the company had generated
export sales revenue of $60.94 million, of which clothe (beached , dyed or
printed) accounted for nearly US $ 33.95 million; made ups in the textile
sector accounted for US $ 14.16 million; yarn sales accounted for :Us $
10.31 million and towel sales accounted for US $ 2.52 million.
The Crescent Textile Mills Ltd has been introduced as a public limited
company under the company’s ordinance on 1 May 1951 and has quoted
on the stock exchange. Crescent energy and SAC are fully owned
subsidies of the Crescent Textile Mills Ltd. The share break down of the
Crescent Textile Mills Ltd is:
Crescent family and group companies 51.57%
Public and foreign institution 48.43 %
List of board of directors is shown below:
Mr. Muhammad Anwer (Chairman& Chief Executive)
Mr. Anjum M. Sleem
Mr. Hamayun Mazher
Mr. Khalid Bashir
Mr. Muhammad Arshad
Mr. Nasir Shafi
The company has signed a joint venture agreement with Green Wood mills
Inc. USA. To set up a composite Denim garment-manufacturing unit at
Bahuman, Dist. Hafizabad under the name and style of crescent green
wood limited.
THE CRESCENT GROUP
The Crescent Textile Mills is a part of Crescent group. Which has established
about 30 companies in various part of the country. The major sector of the
group is an under.
Listed Companies:
• Crescent textile mills limited
• Crescent Knitwear limited
• Crescent sugar mill & distillery limited
• Shakargani mills limited
• Crescent boards limited
• Crescent investment bank limited
• Shams textile mills limited
• Elite textile mills limited
• Crescent jute products limited
• Crescent leasing corporation limited
• Crescent steel and allied products limited
• Jubilee spinning and weaving mills limited
• Pakistan industrial leasing corporation limited
• Premier insurance Co. of Pakistan limited
Unlisted Companies:
• Shams food products Limited
• Crescent ventures International Limited
• Crescent Bahuman Limited
• Crescent greenwood energy Limited
• Crescent energy Limited
• Crescent powertec Limited
Private Limited Companies:
• Crescent group engineering (pvt.) Limited
• Crescent (pvt.) LimitedS
• Crescent software products (pvt.) Limited
• Riaz and company (1962) (pvt.) Limited
• Jhang electric supply corporation (pvt.) Limited
• Crescent business management (pvt.) Limited
• Cresent group (pvt.) Limited
• Crescent group services (pvt.) Limited
• Elite energy (pvt.) Limited
• Juiblee energy (pvt.) Limited
MISSION
STATEMENT
Mission of Crescent Textile
Mills
Mission of Crescent Textile Mills is “To produce superior
quality products to face competition in the international
market and to train the staff at the world-class level to
enhance the maximum shareholders value”
CORPORATE
OBJECTIVES
CORPORATE OBJECTIVES
Following are some main objectives of Crescent Textile Mills:
To arrange timely production and maintain quality goods for entire
satisfaction of the customers
To make Crescent Textile Mills a first choice for the foreign customers
by improving its quality and services.
To extend exports all over the world through better services.
To establish and develop excellent working environment in the
departments.
Computerization
Incline a sense of civic responsibility in the staff members
To achieve company’s objectives
Implementation of ISO-9002 standards
To provide the employees a friendly atmosphere to increase their
commitment and loyalty towards their organization.
MANAGERIAL
&
MARKETING
STRATEGIES OF
CTM
Managerial Strategy Of C T
M
As it’s major competitors are in the country as well as in the foreign
markets, while concerning with the countrywide competitors, there are major
competitors like Nishat Textile Mills Limited, Kohinoor, Gul Ahmed,
M.Farooq, Chenabtextile mills limited, A.M textile mills limited along with
major competitors in European market.
There is strictly needed a strategic focus to face the present intense
competitive situation. The market for textile products is becoming more
competitive every year. The customers are emphasizing on quality over all
other thing and can easily search the most cost-effective supplier anywhere
in the world. Keeping this in mind, Crescent Textile Mill’s focus has been on
meeting its customer’s demands and requirements, improving its
competitiveness, increasing productivity, and enhancing its existing quality
control systems. So it has emphasized on the implementation of the
developed strategies.
Every element of cost and quality is continually scrutinized and
measured according to worldwide standards. Each unit is independently
analyzed as a cost center to make cuts wherever and wherever possible.
The Quality Assurance department has been further strengthened with the
addition of trained staff and state-of- the –art equipment.
Marketing strategy of C T M
Although it may be the duty of the government to ensure availability of
cotton at a reasonable price, it is the exclusive responsibility of Crescent
Textile Mills to implement the total quality management concept. If units are
able to minimize wastage, optimize cost of production, improve quality
standards, ensure product diversification and learn to market the finished
products, no country can compete with Pakistan.
Taiwan, Hong Kong, Korea, Japan, Bangladesh are the large
manufacturers and exporters of value added textile products, but are
dependent on Pakistan and other countries for their requirements of cotton,
cotton yarn and fabric. Their edge is in finishing good quality fabric;
producing attractively designed garments maintaining quality standards and
abide by delivery commitments. These countries also follow different
marketing strategies, while the Pakistani manufacturers first produce a
product and then try to locate a customer; other countries produce what the
importers demand.
Not only this, buyers are often willing to pay a premium for odd
specifications, short delivery time or immediate commencement of
shipments of small lots, extra care in meeting specification and better
quality standards, using better quality package which may not cost as much
as the premium offered.
Lately, the manufacturers of yarn having pragmatic thinking and
realizing the tough completion have started producing dyed cones. They
have not only tabbed a new market segment but also get better return. Isn’t
it not innovative marketing?
Crescent Textile Mills have to realize the harsh reality that the days of
cheap domestic cotton are over, the import of textile products is being
gradually open and quota regime will be phased out gradually. They know
their capabilities as well as shortcomings, products they can produce and
the products the foreign buyers demand, we have to plan today how would
they market their products is the days to come.
MARKETING
ACTIVITIES
Supply and trade information
Raw cotton is purchased directly from ginning factories or import on
cash payment basis, the company carries around 6 month’s supply of raw
cotton at time. The buffer stock for raw cotton is 25-30 days during lean
months. Purchasing usually starts at the beginning of the season and the
company emphasis on acquisition of the best possible quality of cotton
each year. Cotton purchasing for on season lasts for about 4-5 months. But
during last 2 years purchase process continued throughout the year.
Spare parts and dyes, chemical etc are imported. Dyes and packing
materials are purchased locally. The credit period for local purchases is 45
days and 15 days on dyes and packing material respectively. Polyester
fiber is purchased from local manufacturer of 120-150 days basis, from ICI
Pakistan Limited.
Distribution and selecting
terms
The company exports are the major portion of both its yarn as well as
cloth production. In the local market yarn is sold directly to brokers who in
turn sell it to other mills for further processing. Grey fabric is sold on cash
basis. Local sales account for 25% of total turnover and are made on
cash/credit basis.
Managing marketing
information
Marketing consist of people, equipment and procedures to get, sort,
analyze, evaluate and distribute needed timely and accurate information.
Internal record systems
The basic information system used by marketing managers is the
internal record system. It includes order to payment cycle, sales reporting
system prices, inventory level etc. By receiving these informations,
managers can spot important opportunities and problems.
The Crescent Textile Mills is maintaining its internal records by keeping
order to payment cycle. In this system sales/marketing department keep
order up-date total order quantity, balance quantity etc. excise deptt.
Prepared invoice under the instruction of sales dept and goods are sent to
their respective orders by special delivery.
Every firm has maintain its marketing intelligence system for the feed back
from customers and agents etc that what has been happening in the
market.
Marketing intelligence system is a set of procedures and sources used by
managers to obtain their every day information about pertinent
development on the marketing environment. The production staffs of
Crescent Textile Mills visit the end users for gathering information about
their product results and they visit to end-user to solve their problems.
Marketing research systems
Every manager is required to conduct marketing research, formal
research on specific problems and opportunities; they conduct a market
survey and product preference test and a sales forecast.
Market demand
Crescent Textile Mills measures demand by adopting the following method:
Sales representative/agent collect data of total yarn demand.
Specific demands of particular count are determined and calculate
the number of users of said product is calculated.
Then total demand is calculated and Crescent Textile Mills plans to get
maximum share from the market demand.\
Marketing Mix
Marketing mix is the marketing task that the firms are to be required its
objective in the target market. The marketing mix consists of every thing the
firm can do to influence the demand for its product.
The many possibilities can be collected into four groups of variables known as
the “4p’s”.
1- Product
2- Price
3- Place
4- Promotion
Product
Crescent textile mill produces yarn, gray cloth and high quality fabric. Their
products play an important role in the building the goodwill of the CTM.
CTM exports more than 80% of its products and remaining they sell in the
local market. Main products of CTM are yarn; Gray-cloth, bed sheet and fabric
etc. all the products are produce according to the requirement of customer
order. CTM Ltd. Also has the distinction of being the only private sector
company in the textile sector, which has entered in to the partnership with
UCHINO, produce and export towels.
The main products of CTM are as follow:
Yarn products
Fabric products
YARN PRODUCTS
Two types of yarn products
1- Cotton Yarn
2- Poly-cotton Yarn
1)- Cotton Yarn
• 20/1 also called 20 single
• 24/1
• 30/1
• 40/1
Some of them are carded and some of them combed.
2)- Poly-cotton Yarn
• 21/1 blended ratio 76:24
• 30/1 blended ratio 68:32
FABRIC PRODUCTS
They can also be distinguished under two heads:
1-Gray Fabric or Cora
2-Other Fabric (processed)
1)- Gray Fabric or Cora
• 20*20/60*60
• 30*30/76*68
• 40*40/100*80
• 12*10/60*60
• 22*22/60*60
• 24*24/68*63
2)- Other Fabric (processed)
• Printed Fabric
• Dyed Fabric
• Bleached fabric or white
STITCHED ITEMS / MADE UPS
Other finished products of CTM are as follow:
• Bed Leering
• Home Furnished Products
• Bed Sheets
• Quilt Set
• Kitchen Knap Kin
• Kitchen Towel
• Kitchen Apron
• Blanket Cover
• Duvet Cover
• Curtain
PRICING
Pricing is the amount of money that customer have to pay to obtain the
product. The price policy of the company should be in such a way that it
should produce a reasonable profit for the company and satisfy the customer.
There are two types of costs:
• Fixed cost
• Variable cost
1- Fixed cost
Fixed cost is the costs, which remain always same whether, are produce large
quantity. Therefore, companies always try to use there full capacity of
production because with increase in production the fixed cost decreases.
2- Variable cost
Per unit variable cost rises as the quantity produced decreases. Following
factors are included in variable cost:
• Dyes and Chemicals
• Transportation
• Cost of material
PRICING PROCEDURES
1-Pricing Procedure For The Local or National Market
CTM sells more then 80% of its products in the foreign market. They sell only
extra quality left from the foreign order or defected product in the local market.
They call the tenders when they want to sell the product in the local market.
They sell to that person whose tender price will be high. Sometimes CTM sells
on its products at cut-price. Because, when some extra quantity is from the
foreign order they sell at cut price because, they have already charged their
cost from the foreign customer.
2-Pricing Procedure For The International Market
Pricing procedure of CTM for export is different from the local procedure. They
keep in mind certain factors before changing the price in foreign market.
When any customer wants to purchase the products, after negotiation they fix
the price. Because, there are certain other factors are also included with fixed
cost. The important factors are quality of.
Approval
CE gives the approval or may give other price to be offered.
Contract review & check sheet
Section in charge takes following steps before issuing a contract:
Prepare contract review check sheet
The requirements are adequately defined and involvement’s of
production areas.
In house/out side have the capability to meet the order requirements.
After getting approval of costing and review of customer requirements,
prices are quoted to customer for confirmation. After confirmation of prices
by customer, sales contract is issued to the customer with complete detail
of construction, width/size, price, quantity, delivery, payment terms etc. and
the cloth order is sent to relevant department.
Purchase order
Purchase indent folder are received from customer pertaining to different
contract booked sectional in charge check and see any discrepancy of the
contract if any is found, then it is come to the knowledge of the customers
for amendment.
Grey demand
Grey demand placed to the following department
To export sales section for new order or revision
To production planning and coordination (PPC) they are coordination
between export and processing department.
The stock management for updating stock position
Inspection Grey cloth for issuance of Grey to processing
Place / Distribution
CTM exports more then 80% of its products. They are using two types of
channels of distribution in export their products.
Direct Channel
CTM Customer
Indirect Channel
CTM Middle man (agent) Customers
As most of the products of CTM are exported, so they use the different modes
of transportation to transfer the product from CTM to the customer country.
Mostly CTM exports its products through ships. There are other modes of
transport also being use:
• Trucking Companies
• Airlines Companies
• Shipping Companies
CTM exports its products to all over the world but the major countries are as
follow:
U.K
U.S.A
Japan
Canada
Australia
Germany
Holland
U.A.E
Srilanka
Egypt
Malaysia
Promotional Strategies
The CTM has not any promotion point its products. Because the demand of
their products in the world is very high. We can easily judge them from their
work. Our export figure is varying high as compare to any individual company.
Sources Of Communication
CTM uses following sources of communication
Textile exhibition
Personal visit to the customer
Customer visit to the CTM
Fax, Telephone, Mail, e-mail etc\
Quality policy of the company is as under
It is the policy of CTM to provide products and services that consistently meet
the expectations of our customers. Encourage total employee involvement in
the never-ending effort to improve the quality of our products and services.
All employees are responsible for the quality of their own work. All have the
authority to initiate action to prevent the occurrence of product nonconformity.
Managers at all levels in the organization are responsible for quality
improvement activities within respective areas.
Top management will provide leadership and direction of achieving quality
improvement by interpreting policy, recommending strategies, organizing
resources, and assisting managers in the development and implementations
plans.
Quality Objectives
The quality objectives of CTM are as follow:
time delivery.
DEPARTMENTS
Marketing Department
Marketing department of CTM for the execution of orders as well as
marketing of the products in foreign countries. The main objective of the
department is to generate the export business with quality products and
better services as well as to provide efficient after sales services.
Division Of Marketing Department
Marketing department of CTM has two divisions as following
Export Sale
Local Sale
Now a day, export sale &local sale departments are under logistics but
work coordination of export marketing.
EXPORT DEPARTMENT
CTM has major business of exports, round about 80% of total sales are
from exports. As export market of CTM is divided geographically into four
segments, so to deal each sagment a separate group op person is
allocated who are responsible for all the orders of that specific territory /
sagment.
Export Asia Africa (EAA)
Export U.S.A & Canada (EUC)
Export Yarn &Towel (yet)
Export Europe & Cyprus (EEC)
The process of flow of work in these sections of export departments is
same, so I have explained generally the process and functions of export
department.
The export department is situated within the finance department. There are
a lot of workers, which perform different functions.
Objectives
Following are objectives of export department:
To survive in the world market
Increase export for the growth of the company and the country.
To increase exports for the sake to obtain incentives and privileges of
excise and taxation
Increase exports for obtaining the optimum reputation in the foreign
markets
To get the self-reliance and prosperity level of the company.
EF (export finance)
Planning, Production & Control
Functions:
Stock update
Export documentation
In the modern world all countries whether developed or under developed
are pre-occupied with problems of selling merchandises in foreign
countries. When goods are exported a number of documents are to be
prepared unless the overseas trade is properly documented, the exporter
cannot receive payment and the importer cannot make it.
The major documents involved in the export process or in the foreign trade
are:
Invoice/indent
Letter of credit
Transportation documentation
Packing list
Certificate of origin
Certificate of inspection
Procedure list
Form ‘E’
Bill of exchange
Before going into elaboration of these documentations, one must know
all about them. No person can export any goods until he is registered as
an exporter with Director general of Export Promotion Bureau.
Invoice/indent
A commercial invoice is a commercial document by which the seller
charges the goods to the buyer. The in formations, which this document
provides to the exporter and the importer, are as follows:
Date
Invoice number
Name and address of the buyer and the seller
Order/contract number, description of the goods, quality, unit price and
the total amount of goods exported
Terms and conditions of the payments
Shipment details
Certification on the invoice
Letter of credit
The terms of letter of credit is defined as:
“The confidence of man in man”
In financial and commercial transactions this confidence is displayed
by the willingness of a creditor to grant to a debtor time for payment of the
debt either on the oral or written assurance of the letter that such payment
will be duly effected.
The procedure and the parties involved in the letter of credit are as follows:
Buyer
Opening bank
Advising and negotiating bank
Shipper/Beneficiary
Contract of sales
Transportation document
International trade involves the movement of goods from the warehouse of
the exporter to the warehouse of importer. There are several modes of
transporting goods and several types of documents involved in
transportation process
Mode Carrier Transportation document
By sea Shipping Co. Bill of lading
By air Airline Co Air way bill
By post Postal Services Post parcel receipt
By rail Railway service Railway
By road Trucking Co Road way bill
The transportation documents is the most important document because it is
the evidence the goods are being transported and it enables the importer to
obtain the delivery of the goods in due course.
Transportation document can be classified into two main types, which are
as follows:
Negotiable document
These are the documents whose title can be transferred from one person to
another person. The delivery of goods can be made to the final or existing
holder of the document.
These include bill of lading, railway receipts etc.
Non-negotiable instruments
These are the documents where the title of the goods in not transferable.
The delivery of the goods is only made on the names of the consignee on
identification.
Bills of exchange
Bills of exchange is legally defined as,” An unconditional order in
writing, addressed by person to another, signed by the person giving it,
requiring the person to; whom it is addressed to pay on demand or at a fix
or determinable future time as uncertain in a money or to the order of a
specified person, or to the bearer.
Finance department
This is the major department of the company. Finance department
EXPORT DEPARTMENT
Purchase department
The department is located within the factory. There are eight employees working in the
purchase department.
The decision of the purchase of raw material is med by the top management or when any
new machinery or plant is to be acquired. At the time of the cultivation of the cotton crop,
the decision is made with considering the other factors like requirement, price, quality etc
that how much we should purchase and from whom we should purchase and through what
sources we can finance this purchase. So in this regard, the Chairman with the consultation
of the Mill Manager, General Manager Finance and Technical Manager make the bulk
orders.
The finance division helps them in this regard to arrange eh funds. So in this regard, the
select the bank that provide financing facility at lower rate of interest.
As far as the purchase of raw material is concerned, the purchased department fully
contributed its efforts in this regard. Whenever any section of the mills or he head office
requires any thing they make and purchase indent to the purchase department. At mill, the
storekeeper made this indent, on the other hand of the required thing is available with him,
he makes the delivery to that section.
When the supplier dispatches the goods to the mill, a dispatch advice is made by the
department t other store keeper that the items is dispatched to you. At mill, an inward gate
pass is made and the items sent to the store where the storekeeper prepares goods receipt
note after inspecting the items and this GRN one copy is sent to the purchase office and one
copy is sent to the account s office.
Function of purchase department
Following are functions of purchase department:
o Provide link between the workers and management
o Ensure the implementation of the rule and regulations of the company
o Inquires of the complaints against the workers
o To solve the problems and grievances of the workers.
Main store
The store plays very important role in any kind of manufacturing organization. Here we are
discussing the objectives and functions of the store in any manufacturing organization.
Objectives
Following are the main objectives of any store in the manufacturing organization.
o Planning for arranging the demand
o Provide different demanded items to the different departments
o Communication with the top management
Functions
Following are the main functions of the store keeper has performed in any kind of
organization:
o Collection of demand from different departments and issue material to them
o If stock is not available with it, demand sends to purchase office
o Collection of receipt of material or items purchased
o Keep the stock of items up dated
o Keep the items in the store in systematic manner
o Link with purchase office in the valuation of the items purchased
At Crescent Textile Mills there is the main store at the mill premises, which is situated away
from the production and accounts offices. There are seven men in the store, which deal with
the demand of the different people at the mill.
Time office
At the mill premises there is a time office, which performs following functions:
Prepare the monthly wages of the workers on the basis of the basic and over time
worked
Prepare the final settlement sheet of the worker
Maintain the time register for the workers
Maintain the record of the workers
At Crescent Textile Mills, there are 12 to 15 men working in time office.
At mill premises there is a cashier, which holds the patty cash for the day to expenditures of
the factory and give wages to the workers.
At factory there is a strict security staff at the main gate which checks each and every thing
coming or going from the factory premises.
Personal activities
There is a separate personal department, which performs personal functions in factory.
Recruitment and selection
The personal department helps the upper level management in selecting employees.
Vacancies are filled on the basis o experience, competency and capacity.
Sources of recruitment
Internal sources
If some vacancies are vacant and some junior person fulfills the condition then he is
promoted to that seat.
External source
There are following methods of external sources:
Employee referrals
Some jobs are fulfilled through the reference of the employees already working in the
Crescent Textile Mills.
Unsolicited application
Some times vacancies are filled by choosing among the persons who have send the
applications for the job.
Advertising
If there is any vacancy, an add is placed in the newspaper for that job.
Office working hours
8.30 A.M TO 1 PM
1 PM TO 2.30 Lunch Break
2.30 PM TO 5 PM
HOLIDAY: SUNDAY
LABOUR TIMING
7 AM TO 12 PM
12 PM TO 12.30 PM Lunch Break
12.30 PM TO 4 PM
Retirement age
The employee is retired at the age of 58
Job rotation
There is job rotation system in Crescent Textile Mills. In this way employees are able to
learn more about the system and procedure of the organization
Strengths
Crescent Textile Mills is using imported machinery
It has a strong market image
The customer is aware of the name of the company
It has high financial resources
It has competent staff working for the progress of the company
It has automated system of production
Organization has friendly environment
It has certificate of ISO 9002
It has a wide range of products
It always sets new standards for quality
Its design studio is equipped with latest technology.
It has given a large quota for exports in USA and Europe
Weaknesses
Crescent Textile Mills has ignored than local market
Transit time for international market is comparatively long as compared to India and
China.
There is lack of proper training programs especially for workers. They learn through
experience and from seniors that’s the reason o f high rate of wastage during
production.
Wastage is very high especially in spinning sector
Crescent Textile Mills has no proper sale system for cotton waste and yarn waste.
Some time delivery lates due to lack of production planning
Middle level management is de motivated due to low salary package and promotions
are held after a long period
There is no job commitment among the employees.
There is no proper criteria for performance appraisal that’s why staff in not motivated
No measures has been taken to motivate the employees
Opportunities
As Crescent Textile Mills is ISO-9002 certified company so it has a chance to increase
& expand business all over the world.
The demand of its products is high in international market
Govt is providing rebate facility
Long term loans are easily available
Company can expand its operations easily
Anti dumping duties in European market are overdrawn, so the chance is to increase
the export as compared to last years.
Devaluation of rupee made Pakistani export more acceptable to the foreign buyers.
There is a chance to compete better now.
Govt’s pre import-export policy for cotton is also in favor of Crescent Textile Mills.
Threats
Foreign investment in textile sector in Sri Lanka, Bangladesh and India is a danger in
future for Crescent Textile Mills
It has been seen that many other groups in Pakistan have entered in competition with
Crescent Textile Mills. If they will not be competed well, there is a chance that they
can get share of export from foreign buyers.
South Africa is thinking about to impose the anti-dumping duties on Pakistan textile
exports. If it is imposed, a reasonable export share and big market may be lost.
There is no proper attention towards Russian market. Crescent Textile Mills can get
big orders from Russia. If attention will not be given towards this side there is a
chance that any other competitor can introduce its products in Russia and this market
can be lost.
High inflation rates hinder in competing the Indian yarn at international level.
Fluctuating prices of dollar also affect the purchase of cotton in off-season.
Due to economic crises of eastern countries, so many sales lost during last few years,
but now these countries are again on the road of progress. If the previous customers
are not properly attended, they may be last forever.
Due to military Govt in Pakistan, there is a chance for Pakistan to be declared as a
terror country. So this thing is also a threat for Crescent Textile Mills.
Competitor analysis
The business environment of Crescent Textile Mills is facing tough competition.
Its major competitors are also inside the country as well as in the foreign markets. While
concerning with the countrywide competitors, there are major competitors like Nishat Textile
Mills and there are also other major competitors in the European markets.
The market for textile product is becoming more competitive every year. The customer is
emphasizing on quality over all other things and can easily search the most cost effective
supplier anywhere in the world. Keeping this in view, Crescent Textile Mills focus has been
on meeting its customer’s demands and requirements, improving its competitiveness,
increasing productivity and enhancing its existing quality control systems.
Following are some findings of our report:
There are no motivating factors for the employees
Companies personal policies are not good
The performance appraisal are not carried regularly
Company is facing the main problem of textile industry crises in the country due to
floods, leaf curl virus etc.
The company is unable to use its full plant capacity, which shows that technical staff is
not up to the standards
The employees are not much aware of latest available computer programs
The management is not doing anything for the purpose of satisfying and motivating
their employees and the workers, which may lead towards the more productivity.
Changing Govt policies are providing problems for the company exports policies.
The short-term solvency and long term solvency of the company is better and still
acceptable, because there is still a margin of getting long-term loan.
The net profit margin in increasing since 1995 but it decreased in 1999.
Following are some suggestions
A proper training should be given to the employees and the workers to enhance their
skills to increase their productivity and ultimately of the company.
The management should make the market survey time to time to get more and latest
information about the market factors like the price, demand, current consumer trends
etc.
As the world has become a global village, the management should have the latest
knowledge and information’s about the world because now a little change in any
corner of the world can affect your business.
The top management should give the autonomy and the flexibility to every manage to
make decisions according to the situation at any time and in the absence of the top
managers.
All the duties and responsibilities of the employees and the workers should be clearly
defined.
The computer technology should also be used in decision making as well as in storing
and feeding the data.
The company should make it possible to deliver the goods to the buyers at the agreed
time.
The company should adopt an efficient appraisal system and give rewards to the
employees who have done well.
The management should recruit right persons for the right job.
The management should be able to assess the problems before it’s occurring so that
they are able to find the ways of their solution.
The management should hire multi-skilled workers to get economy of scale.
The company should emphasize on its personnel department immediately on
emergency basis.
Long-term solvency is good but time interest ratio should also be improved.
There should be decentralization in decision-making
An effective relationship and coordination between the departments must be there.
It should be realized to be very clear about the advantages and disadvantages of each
strategy to take effective decision about its continuity to make an effective strategic
implementation.
Crescent Textile Mills should also introduce its brands in local markets.
Company should give proper attention to deal with dead fabric and made ups.
Conclusion
We got a lot of experience from Crescent Textile Mills. During our internship we
came to know that how the different activities take place, what are the procedures
The Crescent Textile Mills is on the way of progress. It has been earning profit for the last
five years. The management is professionally qualified and experienced.
The Crescent Textile Mills should motivate their employees by providing different
incentives. Their salary package is also not attractive. The performance of the Human
Resource department is also not satisfactory.
Crescent Textile Mill’s product (yarn & cloth) is of high quality. The demand of Crescent
Textile Mill’s products is increasing with the passage of time. The company should expand
its capacity as soon as possible to satisfy the demands of their customers.
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LABELS: FAISALABAD, TEXTILE MILLS
1 COMMENTS:
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J U NE 19 , 20 10 1 2: 57 PM
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