NISHAT GROUPS OF INDUSTRY

2013

Strategic Management Process

Hassan Mehmood, Muzammil Tufail

Sidra Malik, Sundas Shahid

[ T Y P E T H E C O M P A N Y A D D R E S S ]

Table of ContentSr. no Titles Page no.

Acknowledgment 3

1 Executive summary 4

2 Nishat Group 5

3 History of nishat group 6

4 The Chairmen 7

5 Nishat Business 7

6 Mission Statements 13

7 Vision statements 15

8 Objectives 17

9 Competitors 19

10 SWOT analysis of nishat mills 21

11 SWOT analysis of MCB 26

12 SWOT analysis of D.G khan cement 32

13 SWOT analysis of nishat chnain 44

14 SWOT analysis of pakgen power ltd 48

15 SWOT analysis of adamjee insurance ltd

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16 Strategies 53

17 BCG matrix 58

18 Conclusion 65

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ACKNOWLEDGEMENT All praises belong to almighty Allah who the supreme authority knows the ultimate relation underlying all sorts of phenomenon going on in this universe & whose blessing & exaltation flourished my thought & thrived my ambitions to have the cherished fruit of my modest efforts my humblest thanks to the Holy Prophet Hazrat Muhammad (PBUH) who is forever torch of guidance & knowledge for humanity as a whole.

We deem it our utmost pleasure to avail this opportunity to express gratitude &deep sense of ob l iga t ion to our revered teachers and NISHAT manager for their valuable and dexterous guidance, untiring help, compassionate attitude, kind behavior, moral support and enlightened supervision during this whole project.

Finally, we would like to extend hurtful thanks to our adoring parents and friends for their day and night prayers sacrifices and encouragement, moral and financial support throughout the course of our study. May all of them live long and enjoy a happy life!

THANKS TO EVERYONE

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EXECUTIVE SUMMARY

Nishat Group is one of the top and most diversified business groups in South East Asia. With assets over PRs.300 billion, it ranks amongst the top five business houses of Pakistan the group contain 21 companies Mian Mohammad Mansha, the chairman of Nishat Group.

The main objective of Nishat Group is to increase market share and satisfy its customer and to full fill this objective they develop strategies effectively, it has been noticed that all aspect internally and externally within the industry must be carefully analysed and examined.

Nishat Group has seen that with strong leadership strategic development and change are seen to become dependent of each other. Nishat Group also uses the idea of logical incrementalism via producing and innovating new and existing products. 'Learning through doing approach' to ensure a successful way to success.

They believe that they have the competitive, sustainable advantage in the industry because of three things: big brands, proven invention and differentiated products, and powerful go-to markets. With their strong brand, socially responsible employees and corporate principles and focus on the younger generation

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NISHAT GROUP

Nishat Group is one of the top and most diversified business groups in South East Asia. With assets over PRs.300 billion, it ranks amongst the top five business houses of Pakistan. The group has strong existence in three most significant business sectors of the region namely Textiles, Cement and Financial Services. In addition, the Group has also interest in Insurance, Power Generation, Paper products and Aviation. It also has the peculiarity of being one of the major players in each sector. The Group is considered at same level with multinationals operating locally in terms of its quality of products & services and management skills.

Mian Mohammad Mansha, the chairman of Nishat Group continues the spirit of entrepreneurship and has led the Group productively to make it the leader business group of the region. Mian Muhammad Mansha Yaha is the captain of this splendid ship having around 30 companies on board. Mansha, who owns the Muslim Commercial Bank as well, is now setting up a billion rupee ($ 17 m) paper sack project too.

He is one of the richest Pakistanis around. Nishat Group was country's 15th richest family in 1970, 6th in 1990 and Number 1 in 1997. Mansha is on the board of nearly 50 companies. Chinioti by clan, Mansha is married to Yousaf Saigol's daughter.

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

The group has become a multidimensional corporation and has played an important role in the industrial expansion of the country. In recognition of his unparallel contribution, the Government of Pakistan has also conferred him with “Sitara-e-Imtiaz”, one of the most esteemed civil awards of the country.

History of Nishat Group (THE FOUNDER)The history of Nishat Group dates back to 1951, when Mian Muhammad Yahya founded Nishat Mills Limited. This man of vision, courage and integrity, Mian Mohammad Yahya was born in 1918 in Chiniot. In 1947 when he was running leather business in Calcutta, he witnessed by the momentous changes that swept the Indo-Pak subcontinent. This is story of success through sheer hard work and an undaunted spirit of enterprise. Beginning with a cotton export house, he soon branched out in to ginning, cotton and jute textiles, chemicals and insurance. He was elected Chairman of all Pakistan Textile Mills Association. He died in 1969, at the age of 51 having achieved so much in so short time. After almost half a century of undaunted success, Nishat group is among the leading business houses of the country and ranks among the top 5 groups in terms of assets and sales revenue.

Nishat Group is one of the leading and most diversified business groups in South East Asia with fixed/ current assets of over Rs.300 billion (US$ 5 billion), it ranks amongst the top five business houses of Pakistan. The group has strong presence in three most important business sectors of the region namely Textiles, Cement and Financial Services. In addition, the Group also has reasonable market share in Insurance (Adamjee and Security General), Power Generation, Paper products ( Nishat Shoaiba Paper Mills), Aviation ( Phonix Aviation) and etc. It also has the distinction of being one of the largest players in each sector. The Group has a remarkable position in the market as good as any multinationals operating locally in terms of its quality of products, services and management skills.

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The ChairmanToday Mian Mohammad Mansha, the chairman of Nishat Group, like his father, continues the spirit of entrepreneurship and has led the group to become a multidimensional corporation, with wide ranging interests. Nishat has grown from a cotton export house into the premier business group of the country with 5 listed companies, concentrating on 4 core business, Textiles, Cement, Banking, and Power Generation. Today, Nishat is considered to be at par with multinationals operating locally in terms of its quality products and management skills.

Nishat Mills Limited Firmly believing in ‘Growth through Professional Management’ their corporate culture is based on decentralization, delegation of authority, encouraging the acceptance of responsibility and inculcating quality consciousness. It is our conviction that every successful organization is a reflection on the commitment, dedication, and team spirit of its employees, and Nishat is no exception. Our people are all imbued with the spirit, a fact manifested in our rapid growth and low turnover Nishat continue to strive to be a better group today than what they were yesterday, for their customers, for their shareholders, for their investors, for the environment, for the community and for their employees, for it is with them that Nishat has achieved so much success in last fifty years.

Nishat’s Business

ASSOCIATED COMPANIES – LISTED

Nishat Mills Limited

Spinning  

   Weaving

   Processing

   Home Textile

   Garments

   Power Generation

   Nishat Linen

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Nishat chunian

Nishat Chunian Limited (a textile company)

Nishat Chunian Power Limited (a power generation company)

Pakgen Power Limited DG Khan Cement Company Limited

MCB Bank Limited

Adamjee Insurance Limited

ASSOCIATED COMPANIES – UNLISTED

Nishat finishing mills Lalpir Power Limited

Security General Insurance Company Limited

Adamjee Life Assurance Limited

Pakistan Business Council

Pakistan Aviators and Aviation (Private) Limited

Nishat Dairy (Private) Limited

Nishat USA inc.

Nishat Papers Products Company Limited

Nishat Linen Trading LLC

Nishat Hotels and Properties Limited

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Nishat Developers (Private) Limited

Nishat Hospitality (Private) Limited

NISHAT MILLS LIMITED

NISHAT TEXTILES LIMITED

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

Nishat Mills Limited (The largest composite Unit in Pakistan)

Nishat (Chunian) Limited (The largest composite Unit in Pakistan)

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

NISHAT POWER GENERATION

Nishat group has also been a pioneer in power generation in the private sector of the country. Nishat setup the first power generation unit in the private sector in 1995. It is furher divied into following division:

Nishat Power Limited

PAKGEN POWER LIMITED

The Company was unified in Pakistan on 22 June 1995 under the Companies Ordinance, 1984. The registered office of the Company is situated at 53-A, Lawrence Road, Lahore. The major activities of the Company are to possess, operate and maintain an oil fired power station (“the Complex”) having gross capacity of 365 MW in Mehmood Kot, Muzaffargarh, Punjab, Pakistan. The shares of the Company are listed on the Karachi Stock Exchange (Guarantee) Limited and Lahore Stock Exchange (Guarantee) Limited. Company makes every effort to balance our

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commitment to country's energy needs with minimizing environmental impacts on land, air and water.

DG KHAN CEMENT COMPANY LIMITED

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

MCB BANK LIMITED

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

ADAMJEE INSURANCE COMPANY LIMITED (AICL)

It was incorporated as a Public Limited Company on September 28, 1960 and is listed on all three stock exchanges of Pakistan. The Company commenced operations with a Paid-up Capital of Rs. 2.5 million, which has grown phenomenally in the past 5 decades. As of 30th September 2010 the Paid-up Capital of the Company is Rs. 1.24 billion.it offers Fire insurance, marine insurance, motor insurance and miscellaneous insurance

NISHAT CHUNIAN

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NISHAT CHUNIAN LIMITED

Nishat Chunian Limited has an desirable business history of over two decades. From a diffident start in 1990 with a spinning mill of only 14,400 spindles, the company today has a vertically integrated textile company which prides itself of being the fourth largest textile company in Pakistan (in terms of turnover).

NISHAT CHUNIAN POWER LIMITED

NCPL is a public limited company incorporated in February 2007. The Company is recognized as a power generation project having gross capacity of 200 Mega Watts under a 25 year ‘take or pay’ agreement with National Transmission & Dispatch Company Limited (“NTDCL”). The project has been appointed under 2002 Power Policy of GOP and has been granted a generation license by the National Electric Power Regulatory Authority (“NEPRA”) in September 2007. The company started its commercial operations on July 21, 2010.

NISHAT DYEING AND FINISHING MILLS

NDF is a purpose planned fabric dyeing and project with the volume of 4.2 million meters per month. It is specially planned to handle heavy weight fabrics like twills, drills, canvases / poplins, fabrics with minimum tension, such as stretch fabrics and all high thickness weaves.

LALPIR POWER LIMITED

Covering 26 countries on five continents, Lalpir is one of the largest global power companies. Our 128 Power plants and 14 distribution companies have the capacity to serve 100 million people worldwide. But our reach does not stop there. It offers Bancassurance Products, Corporate, Credit life plan, Health Plans, Protection Plan and Security and general.

NISHAT PAPERS PRODUCTS COMPANY LIMITED

Nishat Paper Product Company Ltd previously known as Nishat Shuaiba Paper Product Company Ltd is a subsidiary of Nishat Group. NPPCL believes in quality work and long term

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business associations. The factory is located in Kallar Kahar and the machinery used for paper bags is state of the art and German factory-made. We are one of the leading and largest manufacturers of paper sacks in Pakistan with a capacity of producing 150 Million bags per annum. It produces LDPE natural bag, protein powder packaging bag, PP woven bag, standing up protein powder packaging and Heat seal plastic protein powder packaging bag etc.

PAKISTANN AVIATORS AND AVIATION

Pakistan Aviators & Aviation offers the suitability and on time performance, conventional airlines just cannot deliver. It offers Air charter, Aerial works, Maintenance, Refurbishing and affiliations.

MISSION STATEMENTS OF NISHAT GROUP

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NISHAT MILLS LIMITED

To provide quality products to customers and explore new markets to promote/expand sales of the Company through good governance and foster a sound and dynamic team, so as to achieve optimum prices of products of the Company for sustainable and equitable

growth and prosperity of the Company.

NISHAT POWER AND PAKGEN POWER LIMITED

To become leading power producer with synergy of corporate culture and values that respect community and all other stakeholders.

MCB BANK LIMITED

We are a team of committed professionals, providing innovative and efficient financial solutions to create and nurture long-term relationships with our customers. In doing so,

we ensure that our shareholders can invest with confidence in us.

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DG KHAN CEMENT LIMITED

To provide quality products to customers and explore new markets to promote/expand sales of the Company through good governance and foster a sound and dynamic team, so as to achieve optimum prices of products of the Company for sustainable and equitable

growth and prosperity of the Company.

ADAMJEE INSURANCE COMPANY LIMITED

Being the leader insurance company of Pakistan’s and second best in asiaour aim is to be a sufficient participant in developing Pakistan’s image by providing maximum insurance

protection at the most competitive price in highly efficient manner for industrial and economic growth.

VISION STATEMENTS OF NISHAT GROUPS

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NISHAT MILLS LIMITED

To transform the Company into a modern and dynamic yarn, cloth and processed cloth and finished product manufacturing Company that is fully equipped to play a meaningful

role on sustainable basis in the economy of Pakistan.

NISHAT POWER LIMITED

Enlighten the future through excellence, commitment, integrity and honesty

MCB BANK LIMITED

To be the leading financial services provider, partnering with our customers for a more prosperous and secure future.

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DG KHAN CEMENT LIMITED

To transform the Company into modern and dynamic cement manufacturing company with qualified professionals and fully equipped to play a meaningful role on sustainable basis in the

economy of Pakistan.

PACKGEN POWER LIMITED

To become leading power producer with synergy of corporate culture and values that respect community and all other stake holders.

ADAMJEE INSURANCE COMPANY LIMITED

Our will is to explore, innovate the differentiate; our passion is to provide leadership to the insurance industry.

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OBJECTIVES OF NISHAT GROUPS

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Nishat textile

Objective of Nishat’s textile is to provide only quality products to their customers. That’s why they attained quality certification like ISO 9001.

To become globally competitive, rise the market share price and to realize maintainable and equitable growth.

D.G khan cement

Objective of DG khan cement is refining efficiency in a difficult environment; operating margins exceed the every previous year's figures, wide cost-cutting measures and good levels of business in the emerging markets.

At Adamjee they believe in giving advice, which is totally objective. Thus rather than simply endorse sale of their policies to generate premium, they focus to clients insurance needs. Their core aim is to provide highly differentiated & innovative set of services to their customers, duly mounting up profits for their stakeholders.

Pakgen power generation

Objective of nishat power generation is mobilizing and generating reasonable and environment-friendly energy resources that is now become the one of the key challengers for any nation in today's world.

Muslim Commercial Bank

Objective of MCB Bank limited is to create and achieve the values, which is one of the back bones of the objective of any well organized and managed organization

The second objective of MCB Bank is to take care of the Human capital, which is a necessary thing for the development and success of any well-established organization.

The third objective of MCB Bank Limited is to make it a place, which is much possible and comfortable for employees of the bank.

The forth objective of MCB Bank Limited is to bring new and latest technology in the actions of the bank

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COMPETITORS OF NISHAT GROUP

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Nishat textile’s competitors Crescent textile mills Chenab textile mills Arzoo textile mills Alkarms textile mills Sitara textile mills Kohinoor textile mills Amtex textile mills

Muslim commercial bank’s competitors

Citi bank Habib bank LTD. Faysal bank Prime commercial bank Abn amro bank Suadi pak commercial bank Indus bank Soneri bank Bank of Punjab Standerd charterd Askari bank

D.G Khan Cement’s competitors

Al- abbas cement Javedan cement Kohat cement Lucky cement Dewan cement Mapel leaf cement Pinoeer cement Danto cement Thatta cement Fuji cement Fecto cement Attock cement Gharibwal cement Bestway cement

Adamjee insurance company’s competitors

IGI Insurance Metlife alico Pak Kuwait takaful company State life insurance company EFU New jubilee insurance

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SWOT ANALYSIS OFNishat mills limited

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Strengths :

Export-oriented organizations Competent finance staff

Professionalism in the employees

Corporate culture

Sound policies

Strong group

Successful history

Computer information system

Accessibility of raw material at cheaper rate

Products are technically competitive

Innovative products

Customer orientation

Proficient production system

ISO 9001-2000:

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Nishat textile is certified under ISO 9001-2000 and so it meets the requirement of international standard and has a value in the mind of concern people.

Strong Security System:

Nishat textile limited has a greater security system. There are different hidden security cameras which capture the all moments.

OKTEX 100:

Nishat is also Oktex 100 certified its mean that Nishat is satisfied to not using hazard chemical using.

High quality product:

Nishat textile limited using advance technology like they have modern machinery by which the quality of product produced is very high.

Latest mechanized machinery:

They are using modern looms which they have purchased from Japan and France. And by using that latest machinery the productivity of the employees are very high.

Incredible market positioning:

Nishat textile is one of the pioneer textiles in the Pakistan so it got the position in the mind of its customer. And being an old textile company people are loyal with it. Nishat has a better position in the mind of its customers.

Highly competent and skilled management:

The management of Nishat is skilled they have hired the foreign graduate people in their management and also experienced people from all over the country.

Highly Motivated Workforce:

They are providing better pay to their employees and also bonus to them which motivate the labor force and they are doing well at work setting.

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Adequate financial resources:

The owner of the Nishat is one of the richest persons of the Pakistan and they have more plant and investment in other industries like cement, Bank, They have sufficient financial resources to meet their necessities.

Competitive advantage:

Because it is an old textile and it has still keep its position in the textile market on all others competitors in the nationwide which is its competitive advantage.

Equipped with MIS System:

They have a management information system by which the departments and employees are connect with each other and they have a data ware house by which they can share their resources easily.

Own power generation plant

They have own power generation plant and Nishat is the pioneer in the private organization who start the power generation. And also selling its produced power to the WAPDA

Weaknesses :

High cost of production

The production cost is high because of not properly utilization of its resources.

Centralized decision making:

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The decisions are made by the upper management which is weakness of the Nishat because they have no proper idea about the situation and their decision can be not fruitful for the company.

Feeble image in the international market:

Because of the other textile dedicated countries like China, Bangladesh etc the intercontinental image in the textile sector is very weak. Those countries providing cheap product to the market then Pakistan's textile industries.

Small international market share:

Although Nishat has very strong in the national wide but it has small market share in the global textile industry due to the sound competitors like china, and Bangladesh etc

Less promotional activities:

The advertising and promotional cost of the Nishat textile is low it can take advantage for more turnouts.

Lack of benefits and rewards for the employees

Some facilities that other providing to their employees likes Transport and medical fee etc Nishat not providing to their employees because of which the productivity of the employees decrease.

Opportunity:

Organization can expand product lines:

Currently the Nishat not dealing in knitwear they can expand their product line by producing knitwear. They have plants and the additional cost for the production will be low for Nishat. And they also have better market status.

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Organization can reduce the cost by proper utilization of resources:

If the cost of different matters which is not utilizing accurately is controlled by the Nishat management they can produce more in a few costs. It has to develop a further organized process for controlling and managing resources.

Organization can hire more well-educated and experienced person:

They can take advantages by hiring more skilled people and they should hire young, fresh and vigorous staff for their betterment.

Advertising growth:

As Pakistani media is growing day by day. There is big opportunity for nishat to use telecommunication media for their promotion.

Threats :

Buyer needs demands changes

Because of the research and improvement the design and the product of Nishat is just satisfactory as compare to competitors in the globally and they are not fulfilling the demand of customer.

Political instability

Political instability affects the Nishat because of the quota system the company can be control by the government to export.

Changed of government policies

Government policies are changing day to day so it is a threat for the Nishat to survive in such a unpredictable situation.

Globally Economic instability

Because of the economic volatility the Nishat affected a lot. Clearance system which is increasing on daily basis in the world can generate many problems for the company and any insecurity in the world like 9/11 may affect also the overall export.

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Severe competition

There is very tough competition for nishat textile because in Pakistan the textile industry is growing rapidly.

Mostly operating in a foreign country’s market

Nishat mostly deals with exporting to foreign countries

SWOT ANALYSIS OF

Muslim commercial bank

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Strength:

The main strength of the bank lies in its services. The other fact that contributes is approaching to each segment of society; another positive concern that becomes the strength of the bank is its innovation some others are as follows

Bank reputation:

MCB has made a reputation of a compact economic institutions over 60 years it focus on growth done enlightening services quality investment in technology and people developing its extensive branch network and evolving a large and stable deposits based .

Technical management skills:

Different department of the MCB bank are developed with technical management skills different situations are technically control to avoid any mismanagement and to run the business smoothly.

Customer satisfaction:

MCB bank by the customer satisfaction it enables the customer thorough providing those effective services and provide them information for their investment choices. Customer always

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trust and believe MCB. MCB bank believes in building and maintains close relationship built on extreme care and dedicate itself as a compliment to MCB credit.

Promotion effectiveness:

MCB has developed a very encouraging promotional principle which create great loyalty and motivations in employees towards the bank

Team based approach:

MCB is team of loyal, determined and trustworthy experts who maintain quality of services done excellent performance and presentation. In MCB bank there established a team determination and accord among employees projects are accomplished through members connectively working as team

Continuous improvement:

MCB bank held diverse training programs which enable the members or staff upgrade their knowledge and skills. MCB has taken initiative to introduced new schemes regarding its product and services, in this way it continuously made improvement in its employees and services.

Quest for quality:

MCB bank always tries to give its customers quality product and services to keep them permanent and loyal customer of bank. It always uses different modes to improve the quality.

Employee respect and dignity:

Every employee in the organization is given due respect and owner irrespective of its status and level .employee feel proud to be a part of the organization.

Large network of branches:

MCB is function by the huge net work of 100 plus online branches countrywide. MCB determined constantly to develop and enhanced its branch network day by day to confirm satisfaction and approachability to its customer.

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Weakness: Some of weaknesses are as follow:

Less productivity from staff

The bank management is unable to use optimum productivity from the staff. The matter of fact is that staff is skilled and experienced but that are not utilized properly to attain optimal productivity

Overburdened staff

Staff is overburdened with unproductively tasks from the management .employee should be used when and where required to get maximum output from them. Right man for right job should be select.

Late sitting trend

The most prominent fault in the bank’s management is that late sitting is becoming the trend of the bank. Although, overtime or late sitting in necessary for the sake of meeting deadlines .but late sitting without purpose is of no use. In MCB late sitting is now trend. If they utilize their proper time then they do not need sit late in the evening.

Lack of organization devotion

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Organization loyalty has deficiency between employees. Employees don’t pay attention to their tasks as they think their job as permanent.

Attitude of seniors towards juniors

Attitude of seniors has to change toward to junior’s .some time seniors attitude are not professional. Some seniors get the advantage of their seniority and they treat the juniors harshly if they do not perform according to their will.

Lack of leadership qualities

For the proper performance towards the achievement of organization goals a strong working environment is necessary and to create this environment senior should play the role of leader. They should understand the problems of their subordinates and try to solve their problems and build a strong relationship that results in the achievement of organization goals efficiently and effectively.

Opportunities: MCB bank may improve its rupee traveler cheques (RTCs) sales by through for new market positions. It can familiarize debt card system or may adapt the current ATM cards into a whole debt card. House financing sector can be targeted to maximize the profit.

MCB bank enter into contract with other banks to use each other ,s ATMs which will result in an increased accessibility to MCB customers and customers of other banks as well as all around the world settlements money are strictly observed so as the money paid may not fall in hands of thus termed extremists for that all predictable money filtering done HUNDIES have been still there is an opportunity for MCB to spread its branch network to several countries highlighting mostly on introducing electronic fund transfer services. Different banking courses can be offered for improving of banking staff

Management skills

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Different management skills courses should be introduced to employees in order to make them familiar management abilities.

Update courses:

Various refresher courses should be conducted for the staff to keep them abreast.

Foreign training:

Staff should be sent for some foreign courses in order to known them for global progress in their respective fields.

IT courses:

For staff it is necessary to have knowledge in this it world various IT courses conducted for the staff

Threats:

Competitions are increasing day by day:

Due to the increase in the number of conventional commercial banks, there is an increase in competition. Also there is a lot of aggressive marketing by the competitor banks .this is also a threat for MCB bank.

Increasing interest rates:

Due to increases in interest rate against loans customer and investors cannot get loan from bank .customer will feel unhappy and they are enable to take much loans which will decreases the business of bank.

Instability of government policies :

Government policies changing day by day and government stability is not there.

Entrance of foreign banks in local market :

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Increasing number of foreign bank is entering day by day in local market .which is increasing competitive market of banking sector.

Weak economic condition of Pakistan

Weak economic condition of Pakistan is producing hindrance in the way to progress because people are not in good financial position to do business themselves or to finance it from the banks.

Unregistered business concern:

Some institutions are not registered so they are not bound to adapt all the policies of STATE BANK OF PAKISATAN. They can make their loaning and inters policies to attract customers.

SWOT ANALYSIS OF D.G Khan Cement

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Strengths

Availability of Raw Material. Imported machinery

Imported Machinery and plants in most of companies, which provide better quality to over all process.

Exporter of cement

During fiscal year 2007-08, country exports stood at 7.712 million tons ($435million) and Pakistan has already established its position as an exporter of cement and clinker in the region, Sources said the industry projections suggested that the cement industry exports would reach to $735 million by the end of 2008-09 and it would touch $1.043 billion by the end of 2009-10

Foreign investment

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Availability of foreign investment and loans has also played an important role n softening the demand for bank credit. The moderation in fixed investment demand in cement, construction and textile is more of a reflection of the fact that these industries had already expanded their capacities in recent years and floatation of debt instruments (e.g., chemical, cement, real estate and ship yard)in the domestic market cement, real estate and ship yard) in the domestic market

Comprehensive strength

The compressive strength is a very important factor of cement. The Portland cement achieves its maximum strength in 28 days. The Pakistan standard PSS232-1883 (R) & British Standard BS 12: 1978 provides for 28 days strength of 5000Psi and 5950Psi respectively for mortar cubes.6

Maximum capacity

Cement industries in Pakistan are currently operating at their maximum capacity due to the boom in commercial and industrial construction within Pakistan.

Effect of GDP:

Following effects of GDP will govern the growth of cement industry in Pakistan

1. Higher GDP growth has positive impact on cement demand2. Cement demand growth rate was double the GDP growth rate in last three years

3. GDP growth is expected to continue to have same positive impact on demand growth

Housing demand to grow:

Following indications have showed a considerable demand of cement in Pakistan

1. Housing projects consume roughly 40% of cement demand2. Currently 0.3mn houses are built annually against demand of 0.5mn

3. Low interest rates, post 9/11 remittances’ inflow, and real estate boom have helped housing sector growth.

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4. Easy mortgage availability and announcement of low cost housing schemes will determine housing sector growth in the long-run

Government’s development spending shall continue to rise due to:

1. Government development expenditures count for one third of total cement consumption2. Increase in development expenditures has helped cement demand to grow at

very high rates3. Increase in PSDP- as announced in Medium Term Development Framework 2005-10 will

help cement demand to grow in the country4. Infrastructure development in a region triggers private development projects having even

positive impact on cement demand

Largest exporterPakistan cement industry is one the largest exporter in Asia, major markets are of Afghanistan and Iraq will be after peace. It’s increased GDP by exports, providing cements in Large Dams Project and earthquake rehabilitations projects.

Effective lab facilitiesLaboratory testing facilities meeting all American and European standards and Vertical cement grinding mills.

Performance Blue Chip

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Cement industry called major Performance Blue Chip in current economic survey 2007-08 because during the first three quarters of the fiscal year 2007- 08, the combined paid-up capital of ten big companies was Rs. 91 billion, which constituted 13.17 percent of the total listed capital at KSE in which Fauji Fertilizer, DG Khan Cement, Lucky Cement played major role

Coal systemToday, we find a relatively better scenario as compare to past. Most of the cement plants, that used to operate on furnace oil, have now been converted into coal system, which has substantially reduced cost of production.

The most modern selection of production equipment possible in every major department of the plant.

Cement export to India through railway

Most of the cement export to India is through railway. In order to facilitate cement export to India, the railways has doubled its cement capacity and increase its frequency of trains to India from Pakistan. This step has been taken by Pakistan Railways in order to increase cement export to India. Which is regarded as a highly profitable market?

Use of Coal

1. Coal is found in all the four provinces of Pakistan. The country has huge coal resources, about 185 billion tones, out of which 3.3 billion tones are in proven/measured category and about 11 billion are indicated reserves, the bulk of it is found in Sindh.

2. At present most of the cement companies have switch to coal or gas as their basic fuel; the process has been completed in the last 6 to 7 years. According to the data of the All Pakistan Cement Manufacturing Association of mid-2007, the cost of cement production per ton by furnace oil was around Rs2, 083 whereas the cost of production per ton by coal was Rs8, 68, saving Rs1, 215 per ton. Similarly, the saving per bag was Rs60.75, which is a huge difference. Reserves of coal can become strength for Pakistani cement industry if Pakistan import sulphur washing plant from European country than Pakistan cement industry is able to utilize local coal to meet its energy requirement

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Cheaper labor

The labor of Pakistan is very cheap. This is the important strength of the cement industry as the cement companies of Pakistan has to pay less to their labor which result in saving of their income which later on can be utilized in the expansion of cement plant. Which will increase the cement production?

Good Domestic and Foreign Market

The export may reach to $ 500 million increase during 2008. Data for the first quarter of FY08 shows that Afghanistan is Pakistan’s largest cement export market. The prospects for cement exports seem bright in the medium term due to rising domestic as well as regional cement demand.

Good Government Policies

Government policies are in the favor of cement sector. Due to the government favorable policies the cement sector gets the highest growth rate of 21.11% among all the industries of Pakistan in year 2006-07. The total industry installed capacity is expected to reach 49.1 million tons per annum by FY10

High Quality of Cement

Pakistan produces good quality of cement. This is the main reason due to which recently Russia is offering high price for Pakistani cement. Globally Pakistan is recognized for producing good quality of cement due to which countries like Afghanistan, India, Middle East and some African countries prefer to import cement from Pakistan.

Weaknesses

Industrial development

The stage of industrial development, in most of the segments, is still at a very low level of technology and the existing industrial base is very narrow and consists of very basic industries such as cement, sugar, textile, cigarette, edible oil, fertilizer, soda ash, caustic soda, PVC etc.

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Sophisticated infrastructure

Since cement is a specialized product, requiring sophisticated infrastructure and production location. So, most of the cement industries in Pakistan are located near/within mountainous regions that are rich in clay, iron and mineral capacity. Structure of Cement industry in Pakistan is as such that there is not much substitutability to buyers. Which shows that the Cross elasticity of demand is negligible.

Cartel of the cement manufacturers

The customer has no choice at all to switch between two brands of cement due to cartel of all of the cement manufacturers in Pakistan.

Freight charges

The freight charges are a massive 20% of the retail prices. The plants located very close to each other and tapping the same market will have to expand their markets which will increase their freight expenses. Dandot, Pioneer, Maple Leaf and Garibwal are all located within a radius of 100 kilometers and are selling bulk of their production in the same areas and will thus face serious competition from each other.

Similar pricing of cement industry

Consumers face a tough decision with regards to prefer which brand over which because of the similar pricing of cement industry. The formation of cartel by the cement manufacturers have exploited local consumers a lot and this has led to the concentrated degree of oligopoly, where the firms are acting as a single unit to perform their monopoly. Their combined market power is simply a diluted version of the dominance that a single firm with a monopoly market share can exert.

Increase freight charges

Exporters of the cement often complain that railways freight charges for carrying cement from Lahore city to the border of India are Rs500 per ton ($8 per ton) while it covers only 35 km. Against this, they say on the Indian side, the freight is only $3 per ton for bringing goods from Chundrigar to the border area. Cement exports have been badly hit by high fee that is being charged by trucks and also by foreign shipping companies for the haulage of cement from Pakistan to India. This increase in freight charges effect our exports due to which our exports is declining

Logistic Problem39

Some of the cement companies of Pakistan have received orders from Russia with a price tag of Rs 860 per bag. But our logistics is the biggest hurdle in the way as our transportation system is not good enough to transport cement to Russia due to which our cement companies might lose the chance to capture the Russian market which is a highly profitable market.

Usage of Paper bag

Pakistani cement companies export there cement in paper bags because paper bags are cheap as compared to plastic bags. But the Cement exported in paper bags is against the International standards and companies have to pack the cement in plastic bag. The cement export to India could be affected by the shortage of plastic bags used for transporting the commodity. Although there are two companies that are manufacturing plastic bags for cement but they are not able meet the demand. So that’s why Pakistan cement companies export cement in paper bags.

Idle capacity of various players:

The biggest problem of cement industry is the idle capacity of various players. As many cement players are not operating at their full capacity.

Threats Unanticipated increase in interest rates or less

than expected demand growth might create severe crises for the sector couple of years forward

Lack of demand or depressed demand in future will prove to be lethal for the sector that has just started to recover from the miseries of

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90s. Lack of demand forced cement units to operate at very low capacity utilization in nineties. There was a fierce competition among cement manufacturers.

A price war was witnessed which ended up with no conqueror. Similar apprehensions exist for the future when there will be plenty of excess capacity. Any hurdle in the growth of cement demand may force the sector into the price war. Yet, we expect cement manufacturers to act prudent and learn lesson from the history. Any mistake, similar to the one made in the last decade, will again coerce the sector into the era where all are losers with no winner.

Main component of the cost is fuel. Pakistan's cement industry has converted their plants to coal considering it to be the cheapest fuel, but its price in international markets has gone up by more than 300 per cent in the last one year, which directly relate increasing the cost of production.

The demand of cement falls heavily during rainy weather in the country, which directly affects the running cost of a unit. It is only the rising levels of cement exports, which are sustaining the industry.

Instead of appreciating the marketing skills of cement entrepreneurs to explore new markets for cement, the industry is being pressurized constantly without realizing that any reduction in cement exports from Pakistan will not only deprive the country of foreign exchange ($2 billion this year), but will also result in losses to the industry.

The burden of increased input costs has to be borne by the consumers. It is only the government, which can provide relief to the consumers by cutting down or abolishing the central excise duty.

Problems of oversupply situation:

Following problems might arise with the oversupply situation in cement industry:

1. Lower capacity utilization will reduce benefits of economies of scale. High leverage will also adversely affect profitability of new plants.

2. New plants will gain market share at the cost of older players, which are not undergoing expansion. Large idle capacity is will create panic in players and this may result in price wars in the coming years.

IMF Package in Future can cause to decrease GDP and economical development in Pakistan. Which will also be cause to stop development of infrastructure? So it will have huge effect on cement industry also.

Indian and Iran industry is also expanding its cement capacity

Presently, India faces an acute cement shortage in its Southern states of Tamil ado and Madras and in north Punjab. However, reports indicated that the Indian industry is also working on a fast

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track to expand their capacity in these regions to off-set the shortfall Major capacities of countries like India and Iran are expected to come online by FY10 and onwards which are likely to convert these countries from dependent importers to potential exporters.

High energy prices

Recently cement industry of Pakistan is facing high energy prices due to increase in the international prices of coal and oil. As our coal contain high percentage of sulphur. Due to which Pakistan cement industry is not able to use local coal as a source of energy. Due to which Pakistan cement industry has to import coal from different countries at high prices. High finance and depreciation cost as Pakistan cement industry is expanding its capacity to get the proper advantage of strong demand of cement in different countries. The total industry installed capacity is expected to reach 49.1 million tons per annum by FY10 and because of higher expansion finance and depreciation cost is also going to rise by the FY10.

Decrease profitability due to competition in cement industry

The sharp decline in cement prices has been witnessed due to domestic competition among producers has dampened the profitability of the industry. This increase in competition among the players has further decreased the prices of cement in the local market. The cement manufacturers decrease the prices of their products in order to get high market as compared to its competitor.

High level of taxation

Presently, the cement industry of Pakistan is heavily burdened due to levy of Federal Excise Duty @ Rs. 750 per ton and General Sales Tax @ 15% on duty paid value. In addition to Federal Excise Duty and General Sales Tax, cement industry is also paying the provincial levies (Royalty and Excise Duty) on acquiring of raw material for production of cement i.e. lime stone and shall clay.

Opportunities The local cement industry faces high upfront fuel

costs. In order to facilitate their conversion to coal, which is widely available in the country, the government has given incentives for imported plant and equipment for coal firing units.

The demand of Pakistani cement is expected to continue to grow at the rate of 20per cent for about four

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years to come. It may then follow traditional growth rate of seven per cent per year. Announcement of major dams will dramatically increase this demand.

Deregulation after accession of Pakistan to WTO is expected to open the window of competition from cheaper markets. There may be no tariff after this deregulation on import of cement allowing its entry into Pakistan from cheaper market at lower rate. Cement from cheaper markets may also block Pakistan’s export of cement to its neighboring countries. Global market has vigorously taken up the advantage of economy of scales and multinational giants now control more than 40 per cent of world production (China not included). The recent acquisition of Chakwal Cement by an Egyptian giant, Orascom may be a beginning of such an entry in Pakistan by multinationals. New avenues for export of cement are opening up for the indigenous industry as Sri Lanka has recently shown interest to import 30,000 tons cement from Pakistan every month. If the industry is able for avail the opportunity offered, it may secure a significant share of Sri Lanka market by supplying 360,000 tons of cement annually.

Government Development Expenditure

Government development expenditures count for one third of total cement consumption. Increase in development expenditures has helped cement demand to grow at very high rates. Increase in PSDP- as announced in Medium Term Development Framework 2005-10 – made the cement demand to grow in the country. Infrastructure development in a region triggers private development projects having even positive impact on cement demand.

Construction of large dams

Construction of four large dams will generate demand of 3.7mn tons as construction activities start. Our estimate does not include demand generation from Skardu-Katzarah dam as its feasibility study in not yet completed. Extent of demand generation will depend on size of dam, type of dam, and extent of relocation/resettlement activities required. Bhasha dam will generate maximum demand as it is RCC concrete dam whereas other dams being Earth fill/Rock fill dams will require less cement for their construction. Resettlement activities for Kalabagh dam will generate maximum demand as it is located in a highly populated area.

Improved access to regional market

Afghanistan is Pakistan’s largest cement export market. The prospects for cement exports seem bright in the medium term due to rising domestic as well as regional cement demand. Pakistan also achieved improved access to India after the complete removal of the 12.5 percent custom duty on Portland cement imports in this country from January 2007, showing improved export

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opportunities for Pakistan. India is planning to import more cement from Pakistan to stabilize prices in the market and the government wants a balance in demand and supply of cement in the current fiscal year. The import of cement from Pakistan has increased manifold during last four months. India has registered a number of Pakistani cement manufacturers, a requirement to facilitate import of cement. Pakistan has already increased the frequency of trains from one to three in a week to carry cement from Pakistan to Wagah border. Due to boom in the construction industry, India needs cement in bulk to meet its growing needs.

Demand of Pakistani cement by Russia

Fresh enquiries have been received from Russia and buyers are quoting very attractive prices as Pakistani cement quality is of very high standard and holds good strength

Earthquake in China

In the month of May china is hit by severe earthquake having the magnitude of 7.8 this earthquake has cause the serious destruction in china. This disaster is also an opportunity for Pakistan cement industry to export cement to china.

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High prices of cement in the international market

Cement exports are expected to soar by a massive 107 per cent due to the primary source of overall cement growth in FY08, the high exports owing to the cement supply shortage in India and Middle East which lead to rocketing cement prices in the region.

Increase in demand of cement due to the upcoming sports event

South Africa is schedule to host the football world cup of 2010 due to which they need to make the football stadiums for the World Cup and Sri Lanka are also expected to approach Pakistani companies for cement imports because Sri Lanka to co-host the cricket world cup of 201

SWOT ANALYSIS OFNishat chunian

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Strengths: NCL’s strengths are its resources and capabilities that

can be used as a base for developing a competitive advantage.

Nishat Group is the largest group in Pakistan in terms of sales, which were about Rs.16 billion (US$ 400 million equivalent) last year.

NCL is in businesses namely power generation and textile.

Our textile division, Nishat Chunian has a spinning capacity of 144,803 spindles situated in 5 units.

Due to having setups at difference locations, we have a benefit of using substructure like roads, electricity load, BMR etc)

The product range is 100% cotton yarn, fluctuating from 6/1 to 30/1 in carded yarns and from 12/1 to 100/1 in combed yarns.

In addition to the above we are also in main rolled stretch yarns of 2 and 3 ply yarns and slub yarns.

The total capacity is 59 million lbs. of yarn per annum. The weaving volume is 293 air jet looms wider width.

The fabric is being exported to numerous companies in Hong Kong, Japan, Korea, USA, South Africa, India and Europe.

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The company trusts in product innovation and has successfully leveraged its strength in yarn business to make a variety of fabrics.

NCL timely improves value to its product like adding of dying facility and home textile manufacturing (mention the year of operations)

Sales comprise more than 80% as export which protects in taxation.

Internal cost controls.

NCL Textile Industry is an Independent & Self-confident industry.

Accessibility of plentiful Raw Material helps to control costs and reduces the lead-time across the process.

Accessibility of Low Cost and Skilled Manpower provides competitive advantage.

Large diversities of cotton fiber are available and have a fast growing synthetic fiber industry.

NCL has large and expanded segments that provide wide variability of products.

NCL has Manufacturing Elasticity that helps to increase the productivity.

Qualified and skilled management.

Health working environment.

Fabric for apparel has been consistently supplying to the demands of the export markets as well as the local garment industry.

In sheeting they have effectively made sheeting fabric with counts up to 400 thread suing Ne 100/1.

NCL now positions among the first rate stretch fabric producers in the national and the international markets.

Now installing 200MW power plant, which gives electricity to WAPDA network worth approx. US$ 235 million, which will give, definite considerable returns to the shareholders.

Weaknesses NCL Textile Industry is highly Disjointed Industry. NCL Textile Industry is highly reliant on Cotton.

Lower Efficiency in various segments.

There is Declining in Mill Segment.

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Lack of Technological Development that affects the efficiency and other activities in whole value chain.

Unfavorable labor Laws.

Lack of Trade association that restrict to blow other potential market.

Lacking to generate Economies of Scale.

NCL has to pay Higher Indirect Taxes, Power and Interest Rates.

Opportunities Growth rate of Domestic Textile Industry is 6-8%

per annum. NCL has a Large, Possible Domestic and

International Market.

Product development and Change to furnish global needs.

Removal of Quota Restriction clues to greater Market Development

Market is progressively shifting towards Branded Readymade Garment.

Increased Disposable Income and Buying Power of Customer open New Market Development.

Developing Retail Industry and Malls offer enormous opportunities for the Apparel, Handicraft and other sections of the industry.

In NCL greater Investment opportunities are available.

Threats Competition from other developing countries,

particularly China.48

Continuous Quality Improvement is essential of the hour as there are dissimilar demand patterns all over the world.

Removal of Quota system will prime to fluctuations in Export Demand.

Threat for Traditional Market for Power loom and Handloom Products and compelling them for product diversification.

Geographical Disadvantages.

International labor and Environmental Laws.

To stability the demand and supply.

To make equilibrium between price and quality.

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SWOT ANALYSIS OF

Pakgen Power Limited

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Strength It’s a 200 MW Combined Cycle Power Plant based on Reciprocating Engine Technology. Offer significant relief locally in the transmission system of Lahore, as it would bypass

long transmission lines and potential step down transformer bottlenecks. The plant generation would be consumed very close to the generation site, thus also

reducing substantial transmission losses Role model for others to follow An active member of Independent Power Producers Advisory Council (IPPAC). The project is a 200 MW RFO fired Reciprocating Engine Technology combined cycle

power plant. Emission from power plant well within limit First company listed in Karachi and Lahore stock exchange. Increasing the general public confidence through sale of shares in august 2009

Weakness Depend on shell Pakistan limited for fuel supply.

Threats the competition from WAPDA and KESC

Opportunity

Today the top priority for Pakistan is Energy and Power Generation.

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SWOT ANALYSIS OFAdamjee insurance company

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STRENGTH Domestic image of companies supported by Prudential’s

international image is strength of the company. Strong and well spread network of qualified intermediaries

and sales person.

Strong capital and reserve base.

The companies provide customer service of the highest order.

Huge basket of product range which are suitable to all age and income groups.

Large pool of technically skilled manpower with in depth knowledge and understanding of the market.

The companies also provide innovative products to cater to different needs of different customers.

WEAKNESS Heavy management expenses and administrative costs. Low customer confidence on the private players.

Vertical hierarchical reporting structure with many designations and cadres leading to power politics at all levels without any exception.

Poor retention percentage of tied up agents.

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OPPORTUNITIES There will be inflow of managerial and

financial expertise from the world’s leading insurance markets. Further the burden of educating consumers will also be shared among many players.

International companies will help in building world class expertise in local market by introducing the best global practices.

Insurance liberalization in India is expected to result in a wider choice of major commercial insurance covers, such as fire, export credit etc.

THEARTS

Large numbers of competitors especially major threat from the India’s biggest insurance company i.e.LIC.

Entrance of many more companies in insurance sector with better plans and schemes which attracts most of customer.

Switching of customers from one to other insurance company because of better schemes provided by other companies.

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Because of fraud done by fake companies many of customers does not trust easily on private companies

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STRATEGIES OF NISHAT GROUP

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Strategies of Nishat Mills Limited Diversification strategy Market development strategy Contacting old customers New & innovative product development Improved quality products

Diversification Strategy

Market yarn is extended to increase the customer base. Under this, diversification program, business with Malaysia, Korea, Taiwan and UK have been started. Product range is also increased to supply for the different needs of increased number of buyers production volume is also augmented by concentrating on uneven counts with a result of increase in volume from 90-95 containers per month to around 115 containers a month.

Market Development

In order to decrease their requirement on a few markets especially FAR EAST, new markets were established for old cloth. This diversification not only focused their dependence on Hong Kong but also gave improved profit margins at times when Hong Kong market was very unhappy. Under this market diversification, they started business with South Africa, Australia, Taiwan, Sri-lanka, Italy etc

Contacting Old Customers

The business with some of the old buyers in Europe was also revitalized during this period after strong efforts. This revitalization gave both good volumes and better profit margins.

New and Innovative Product Development

They have established fancy and superior items like Cavalry Twills, Bedford Cords and dobby items, which are being traded at premium prices. They keep on modernizing their equipment in order to maintain the high quality of their products.

Improved Quality Products

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With the increase of competition, Nishat Mills have become more quality aware. In order to attain their quality standards, they are keeping better quality by receiving yarn from pre-approved sources, tighter fabrics review in folding and providing service to their customers.

Strategies of Nishat Chunian Aggressive marketing has been the major factor in their consistent profitability over the

past years.

Their strategy is to remain at the cutting edge in terms of exploring new markets and new products.

The focus is on niche marketing with specialized products.

They have differentiated their business through consistent quality, reliable delivery and proactive handling of customer's needs.

Investment in state of the art technology and top quality human resources has been key element of their marketing strategy.

The organizational structure is lean with very little hierarchy and bureaucracy compared to other organizations of similar size.

This gives them the flexibility to respond quickly to the changes in the market situation.

Strategies of Muslim Commercial Bank The business strategy of MCB is to provide financial solutions to foremost segments of

its customer base, namely retail and corporate. Distinct business groups have been set up to confirm a more focused tactic in satisfying the diversified customer segments.

The Bank has also established an Islamic Banking unit to proposal Sharia compliant products and services, with devoted Islamic banking branches in six cities. The plan for future is to further realize the capacity of Islamic Financial Systems and to bring Sharia obedient network parallel to current retail network of traditional banking.

Retail Banking Group focuses on trading and middle market segment primarily for building risk assets and trade related business.

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The Group also focuses on the development of inventive consumer asset products for filling the personal needs of the customers.

Strategies of D.G Khan Cement Company conducts market surveys to recognize market trends and customer’s response,

company position in the market etc. There is R and D department which constantly trying to improve the quality of the product at the minimum cost and trying to meet the demand of the customer.

Company always keeps an eye over its competitors actions and its offerings like different promotional schemes, product price etc. It also takes proper stroke according to competitors strategy

Promise: Excellent product quality and customer care are the symbol of DG khan cement

Right decision at right time.

Having outstanding Product in hand.

Continually striving to improve and capture more number of market shares.

Training to Staff.

Strategies of Pakgen Power Limited

Safety, performance and value in electric power generation, transmission and circulation.

Respect our people and provide them the chance to be as successful as they can be.

Meet the energy requirements of our customers in methods that improve their quality of life and protect the environment today and for generations to come.

Recover the environmental and safety performance of our generating fleet, and add to that navy for growth.

Set the standards for safety, efficiency and consistency in our electric transmission and circulation systems.

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Foster strong and creative relationships with our public officials and controllers.

Deliver our leadership, integrity and sympathy as a corporate citizen of every community we serve.

Strategies of Adamjee insurance company Focus is on developing tailor made, unique insurance solutions for customers which

include saving, investment, health and protection plans to cater to a wide customer segment.

Focus is on innovation and automation provides us with a robust system and reduces time to market considerably and lowers distribution cost thus passing the benefit to the customer.

By developing strong and unconventional distribution channels they make accessibility to insurance products convenient for the customers hence strengthening the chances of increasing market penetration.

The prime consideration is to educate customers and create insurance awareness by effectively promoting and positioning the brand through:

1. Innovative products

2. Competitive pricing

3. Flexibility

4. Simplicity

5. Availability and accessibility

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BOSTON CONSULTATION GROUP

MATRIX

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Boston consultation group matrix The BCG matrix or also called BCG model relates to marketing. The BCG model is a well-known portfolio management tool used in product life cycle theory. BCG matrix is often used to prioritize which products within company product mix get more funding and attention. The BCG model is based on classification of products (and implicitly also company business units) into four categories based on combinations of market growth and market share relative to the largest competitor.

BCG STARS (high growth, high market share)

Stars are defined by having high market share in a growing market. Stars are the leaders in the business but still need a lot of focus for promotion a placement. If market share is kept, Stars are likely to convert into cash cows.

BCG CASH COWS (low growth, high market share)

Cash cows are in a state of high market share in a mature market. If competitive advantage has been achieved, cash cows have great profit margins and produce a lot of cash flow. Because of the low growth, promotion and placement investments are less. Investments into supporting infrastructure can improve efficiency and increase cash flow more. Cash cows are the products that businesses strive for.

BCG DOGS (low growth, low market share)

Dogs are in low growth markets and have low market share. Dogs should be avoided and lowered. Expensive turn-around plans usually do not help.

BCG QUESTION MARKS (high growth, low market share)

These products are in growing markets but have low market share. Question marks are mostly new products where buyers have yet to find them.

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BCG MATRIX OF NISHAT GROUPS OF INDUSTRY

Nishat groups include following SBUs

Nishat mills Muslim commercial bank

D.G Khan Cement

Pakgen power limited

Admjee insurance limited

Nishat chunain limited

Market growth

Market share63

STARS

D.G khan cement

QUESTION MARK

Pakgen power limited

CASH COWS

Nishat mills

MCB

Nishat chunain limited

DOGS

Adamjee insurance limited

Nishat Textile Mills

Products of nishat textileNisha, Naqsh, Quilt Covers, Quilted Throw-over, Flat Sheet, Fitted Sheet, Pillow Cases, Cushions, Curtains, Table Linen and Fashion accessoriesStar:Nishat’s Star unit, definitely, is Nisha, their clothing line for women. It is a unit that sells throughout the year. Therefore it has been branded as a Star product line of Nishat as the market for women fabric and clothing is huge, ever growing and presents fairly a lot of potential. It has a high market share due to its uniqueness and quality that differentiates it from its competition.Cash cowsNishat’s bed & kitchen linen and accessories can be categorized as the cash cows with which it receives a strong and steady cash flow throughout the year. The market demand for bed and kitchen linen, however not active, has always been there with a sustained and limited potential for growth.Question Mark:Naqsh, the clothing line of Nishat for men, can be categorized as its Problem Child or Question Mark. It’s a unit that hasn’t shown much possible and as a result hasn’t achieved to gain as much market share or make as much cash as was expected and required of it.DogFashion accessories of Nishat can be labeled as Dog; unit with a low market share in a temperately growing industry of accessories

Division Relative marketShare

Industry growthrate

BCG matrix

Nisha High High STAR

Nishat’s bed & kitchen linen

High Low CASH COWS

Fashion accessories Low Low DOGS

Naqsh low High Question mark

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Muslim Commercial Bank

Division Relative marketShare

Industry growthrate

BCG Matrix

MCB HIGH LOW CASH COW

Corporate banking HIGH LOW CASH COW

Islamic banking HIGH LOW CASH COW

Online services HIGH HIGH STARS

Personal banking HIGH LOW CASH COW

Virtual banking LOW HIGH QUESTION MARKS

Interpretation

The mcb bank made substation growth, recording strong growth in revenue and earnings. Mcb is one of the important banks in Pakistan with the market share of 12.5% in industry. Mcb was once in stars but it didn’t utilize its profits there was a chance of horizontal integration by acquiring RBS shares which wasn’t accessible due to the problem in rates of the shares. Hence Mcb lies in the cash cows. Product development and diversification may be attractive strategies for MCB however retrenchment and divestiture are suitable.

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D.G Khan Cement

D.G Khan Cement is a STAR organization having a high market share of more than 13%. The sales revenue grew by over 15 percent in 1st quarter of 2013. This remarkable growth comes on the heels of a fairly stable local and export prices coupled with a nominal up tick of around 4 percent in Company's sales volume. Since the cement industry is Pakistan is on boom with Government investments in construction projects and lower setup cost as compared to past, the industry is going through an obvious growth. All these signs ensure D.G khan Cement to be a STAR organization

Adamjee insurance

The market share of adamjee insurance limited is very low because of other well known companies in the insurance industry. And in insurance industry the ability of growth is very low because there is very low awareness about insurance in Pakistan. So adamjee insurance company is a DOG organization.

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Pakgen power limited

As it is a private company and there is a monopoly of public company WAPDA in power generation industry so it has a low market share. But due to excessive demand for electricity in Pakistan there is a growth chances. And as result it is a QUESTION MARK organization with low market share but high growth rate

Nishat chunian limited

Ncl falls in CASH COWS because the market share of ncl is high because of its home textile and it’s the first rate stretch fabric producers in the international markets and NCL industry growth is less because industry only focus international market it does not expand its business and not trying to target as much local market.

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Conclusion

Nishat groups of industry are one of the important groups in Pakistan. The system, the management style, the policies & decentralized decision making setting is really notable. In this era of technology, the "Information" is the key to achievement in the business. This means that the victorious businessman will be who will have the right information at the right time. This comment leads to the conclusion that the Information Sharing Process should be enhanced.

The overall analysis is indicating that the company's progress has attained through commitment of employees. The efficiency of its management, their keenness to take benefit of opportunities and face challenges of changing economic picture, this all contributes to the very much better and sound position of company. This is noticeable for the devotion and of the employees of the company.

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