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Executive Summary
Shalimar Cotton Export (pvt) Ltd is renowned name in the textile business; it started
its working in 1980 from a small unit of knits in Faisalabad with a capacity of few tons
production per annum. It gradually got the success and now it has buyers from all over theworld. For me working in Shalimar was a thing of great pleasure as it has best business unit
which is dealing with different Departments and processes, besides this having diversified
workforce which provides the students interns a real time learning environment. During my
six weeks tenure in Shalimar, I have passed a equal portion of my time in each department, in
which I have learnt about the Labor policies, ISO certification procedures, Human Resource
Information Management System (HRIS) as well as the major Human Resource functions
and on the other side I have also learnt about processes they do in their organization and also
about marketing strategies. I have pen down all of my experiences in this report. As I am
doing my specialization in Marketing and wanted to adopt marketing as my profession so this
internship will be very beneficial for me and my career. In my report I have written about the
business unit of Shalimar as well as the departments which are playing a major role to make
it a successful organization. I have also performed different analysis to get a clear picture
about the company and threw light about the company future. In a nut shell, Shalimar Cotton
Export (pvt) Ltd is a learning organization, it not only provide a learning platform to its
employees but student interns as well.
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Table of ContentsAcknowledgement .................................................................................................................................. 1
Executive Summary ................................................................................................................................ 2
Introduction to Shalimar Exports ........................................................................................................... 4
Company Profile ..................................................................................................................................... 5
Introduction ............................................................................................................................................ 6
Historical Prospect .................................................................................................................................. 7
Vision, Mission and Corporate Goal ....................................................................................................... 7
Management Hierarchy .......................................................................................................................... 8
Decision Making Process ...................................................................................................................... 10
Business Units of Shalimar ................................................................................................................... 12
Strategic Business Unit Analysis ........................................................................................................... 14
Industry Analysis ................................................................................................................................... 15
Present status of Textile sector in Pakistan.......................................................................................... 15
PEST Analysis ........................................................................................................................................ 18
SWOT Analysis ...................................................................................................................................... 22
Departments of Shalimar ..................................................................................................................... 26
Marketing Mix (4Ps) of Shalimar......................................................................................................... 38
Product ........................................................................................................................................... 38
Price ................................................................................................................................................ 39
Promotion ...................................................................................................................................... 40
Placement ...................................................................................................................................... 41
Conclusion ............................................................................................................................................ 43
Recommendations & Suggestions ........................................................................................................ 44
Learning as an Internee ........................................................................................................................ 45
Limitations during Internship ............................................................................................................... 47
The Effect of Internship on my Future Career ...................................................................................... 48
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Company Profile
Name Shalimar Cotton Export (pvt) Ltd
Logo
Slogan Where Quality Matters
Established in 1980
Geographical Location Shalimar Road, OFF Sargodha Road Samana Pul.
Faisalabad - Pakistan
Industry Textile
Major Units Weaving, Dyeing, Finishing, Designing, Printing
Number of Employees 2500 Employees
Group Turnover US $ 100 million
Mode of Business Business to Business
Business Based Manufacturer and Exporters
Major Buyer USA, Europe
Certifications ISO 9001-2000
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Introduction
Shalimar Exports is countrys one of the major export oriented companies which mainly
deals with the top quality fabric, home textile and institutional textile. Management at
Shalimar believes on the quality philosophy thats why from yarn to the fabric manufacturing
and from textile to the garment, in each step quality assurance department is there to verify
the quality perhaps this is one of the major reasons of success of the Shalimar in textile
sector. Currently it has more than 2500 employees which are currently working in different
departments of Shalimar and helping the organization to achieve its mission. Shalimar took
its start in 1980 from the small knitting unit having worth of 1,400,000 PKR and now from
the figures of year 2012 the company has the worth of 5,000,000,000 PKR.
Shalimar Exports comprises of Dyeing, Knitting, Stitching, Woven as well as
Embroidery. Evolution of the Shalimar started two decade back and there are several factors
involved behind the success story in which the top most is the upper management philosophy
particularly visionary leadership of Mr. Ijaz Ahmad who develop this business empire in this
age of high competition. Beside this its latest production system, quality philosophy, niche
marketing are all there to make it distinct from rest of the other textile manufacturer.
Corporate value of Shalimar includes Integrity, constant self improvement through
continuous learning, Leadership, Teamwork and Social Responsibility. Shalimar Focuses on
four major corporate pillars.
1. Customers2. Suppliers3. Employees4. QualityThere are two internal props that are employees and quality through which Shalimar is
able to gain and retain the customers satisfaction as well as the suppliers commitments. It isthe company which is highly committed to continuously providing superior customer value,
worker dignity, shareholder satisfaction and society welfare by following the guiding
principles like fulfillment of customer need, communication with vendors, Strict compliance
with quality control system, on time deliveries and Career development opportunities for
employees.
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Historical Prospect
Shalimar was established in 1980 with a single Composite Knit Unit, Shalimar Group
has grown leaps & bounds to branch out not only within its core textile business but has also
incorporated technology oriented services in its line of businesses. Today the company
comprises of Dyeing, Knitting, Stitching & Weaving as well as Embroidery units
In this about 33 years from the starting point of Shalimar it achieves different mile
stones. From a single composite unit of Knitting and about 200 employees now it has more
than 2500 employees in its different unit. The growth of Shalimar is not sudden it took years
to reach at this position. However its worth noting that it remains the property of same
owner who was the actual founder of the company and still it is under their supervision. The
owner of Shalimar is amongst the 20 richest families of Pakistan.
So, from the start the financial position of the Shalimar was quite strong and from the
beginning of the period it has sound position which encourages it to grow.
Vision, Mission and Corporate Goal
Though in the past years, there was greater downsizing and the major changes at
management level throughout the organization but after that from the beginning of year 2009,
Shalimar has been able to stabilize in the market. Shalimar was one of the victims of the
crisis of Textile sector but it is for shorter period. Shalimar has developed its mission and
vision by keeping in view the industry situation as well as the competition in the Market.
Corporate Vision
Shalimar Vision statement states that
Be the first choice of worldwide buyers and brands to choose
us their off shore manufacturing house for their world wide
leading products.
Mission Statement
Shalimar has quite long mission statement which covers all the components of
mission statement like what we are? What we do? And how we do? It states that
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We earnestly and sincerely look forward to satisfying our clientele. We are
continuously researching in innovation and the latest technology to keep pace with
market requirements. Aim is to produce the best range of fabric and embroidery in vogue.
We pay attention to cost effectiveness; therefore we are able to give quality at competitiveprices. We pay due attention to our environment and avoid pollution. Last but not least,
we abhor child and forced labor.
Corporate Goals
The three pillars on which the Shalimar Cotton Export (pvt) Ltd has its corporate
structure are
1.
Continuous improvement2. Customers satisfaction3. Quality of product and system
All these pillars are the pillars of quality system which the organization owns in order to
satisfy its customers. Continuous improvement means the process of quality is not still at a
certain point, it continuously moving towards the improvement and cant be still to some
location, and the sole objective of this continuous improvement is to satisfy the customers
need by giving the customer the quality products.
Management Hierarchy
Shalimar Textile Limited is highly autocratic organization in which authority is in
some hands that used to run the organization by utilizing their authority. Decision making is
there at the top most of the organization and employees find little space to implement their
own decision.
Top Management
As it is a private limited company so, its shareholders is its family member and the
ownership is in the hands of the chairman Mr. Ijaz Ahmad himself. The owners son Mr.
Khurram Ijaz is actually own the house of Chief Executive Officer and below him is the
Director Mr. Waqas Ijaz who is the brother of CEO and son of the Chairman and really very
close to the CEO.
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Chairman Ijaz Ahmad CEO Khurram Ijaz
Director Waqas Ijaz
Middle Management
In this level of Management there are the managers and assistant manager or in some
cases there are some posting of officers who actually play a role of bridge between the top
level management and the low level management. Middle level management is the personnel
who are actually working for the organization in practical ground. As I have described earlier
that it is highly autocratic organization so middle management usually dont have authority to
make the decision even of their daily routine task, they have to go for the head of concerned
department or towards the director. Top management usually takes strict action when ever
middle management impose its authority and high plenty has to pay by that particular
individual. Middle management is that part of management which always remains the victim
of job insecurity and any change in the policies of top management can cause them to lose
their job. Might be this is the possible reason that efficiency level as well as the motivational
level at this stage of the employees remain at the edge of extinction.
Export Manager M. Usman IT Manager Abdul Qaddose Finance Manager M.Faisal
Marketing Manager Bilal Ahmad
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First Line Management
Usually in services department there exist no post of first line manager except in
admin department where some clerical posts are there who are supposed to be the first line
manager. In production level there exist supervisor posts including the general supervisor,
quality supervisor, stitching supervisor etc. People on these posts are responsible to answer
the middle management. Middle management acts as a role of bridge between the top as well
as low level management. Turnover rate at this level is very small and on the average people
work for the organization for 8-10 years. The possible reason is that the risk of job insecurity
is very low except in some chances as in the year 2008 there was widely downsizing in the
knits and dying units of Shalimar and for those more than 800 workers got fire from the
organization.
Decision Making Process
As the organization is highly bureaucratic in its structure and organization culture is
also autocratic. Command and control of the organization is in few hands and these few
hands are responsible for the decision making and rest of the organization is the follower who
used to follow the orders imposed by the top management. In centralization decision making,
some time when the thing is to make quick decision than it acts affectively while when in
some cases the failure of the decision very serious result.
Shalimar H uman Resource Dil emma
In year 2008, Top management decided to start downsizing in two of its
units that are Knits and dying, the sudden downsizing was quite shocking
news not only for labor level but also at the middle management level.
Without taking in confidence to the human resource department, CEO and
directors of Shalimar decided to change the policy of gratuity for the
employees. This causes a serious curse in the employees and they started
agitation in the Shalimar resultantly Shalimar has to close its working for
more than a month. The market value of the Shalimar started decline and
turnover rate in other units also give rise to 50%.
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Decision making process in Shalimar started
from the CEO and director which are called the competent authority in the HR manual. After
getting the consensus from the director, CEO issues the order to the concerned head of
department. Head of department in some causes study the feasibility of the decision (this
happens in few cases) if the decision is feasible than HOD put forward this decision toconcerned managers or assistant managers and they implement the decisions and later on the
results are being compared that it give rise to the acquired results or not. Here the one of the
major role is also the unit manger or admin manger which on actual is responsible for the
whole unit. It is more responsible for the administrative problems in the organization rather
than the decision making.
As it is highly bureaucratic organization thats why decision making power is in few
hands, from the head of department, the decisions got implemented to the concerned
managers and assistant manager from where it proceed further to the implementation on real
grounds.
There is a larger gap exist between the decision making body and the implementation
of the decisions thats why most of the decisions of management dont get the success as it
should or you may say that the policies in Shalimar cannot implemented with its real soul
rather than it got impose on the employees thats why it does not lead to the required results.
In few cases it leads to the negative phenomenon.
In few cases it has also some positive aspect as there is centralization of command so
the implementation of decision is not a big problem and people agitate fewer as compared to
those textile mills in which there are decentralized decision making bodies. Beside this
management can make a quick response to the external forces and this may lead to the
flexible decisions.
Decision making bodies
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As you can see here in this figure the decision making body at Shalimar Cotton
Export (pvt) Ltd comprises of the competent bodies in which CEO, Director and Admin
Manager are there to make the decisions and no other stakeholder is there.
Business Units of Shalimar
Shalimar Exports is a well known name in the textile industry. It was established in
1980 since then Shalimar Exports work in this field of textile to form innovation and
exploring of new efficient and effective productive ways to generate chic and classy products
for its billion of customers all over the world. Shalimar has been an expert and biggest
producer of Fabric and Home Textiles at international level along with Knits and Woven
having an annual turnover of $100 million.
They have been working on the path of latest productive systems and technology
alongside its implementation that has moved them forward and has opened new areas to
move high in the field of textiles. Buyer Satisfaction is their ultimate goal. Keeping in
view their performance besides aggressive marketing they have rigid guidelines on the
Quality Control, on time delivery and satisfaction of the buyers.
The same passion and entrepreneurial spirit on which the Company was founded on
more than 30 years ago continues to drive their ongoing success. Shalimar is a complete
vertically integrated company; all its requirements are under one roof to serve the demands of
todays markets and to give the buyers the best service possible. Registered as Shalimar
Exports (PVT) ltd. and is being headed by Mr. Ijaz Ahmad. Today the company comprises of
the major five units and all of these units have state of the art production system. These major
units are
Weaving Dyeing Finishing Designing Printing
All these units work cross functionally while on financial gains and losses each unit is
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independent and have no impact on the functionality of
other units. I will briefly explain about the working of this entire unit.
Shalimar Weaving
With over 25 years of experience in the manufacturing of woven fabrics,
commencement of woven garment was a logical extension of business. Shalimar woven was
established in 2002 as an independent unit to cater for the growing global demand for high
fashion home textiles. Due to a strong technical and professional backup, at present, Shalimar
is producing 8000 bed sheets per day and in the near future, management plans to enhance
this capacity to 15000 sheets per day.
The Weaving unit is fully supported by highly skilled professionals along with state-
of-the-art stitching and washing machines from Japan, Italy and Turkey enabling them to
produce high fashion products.
Shalimar Dyeing
Shalimar has state of the art machines for dying; there are two types of dyeing are
available at Shalimar that are Yarn Dyeing and Fabric Dyeing. For each type of dying
different machines are being used in which different type of dyes can be used according to
the need of the fabric as well as the demand of the customers. These types of dyes are
reactive dyes which can be used to make covalent bond with the fabric, Disperse dye can be
used to make a deep penetration in the fabric, Vat dyes and direct dyes can be used to make a
overlapping with the fabric.
Process I nvolved in Dying
Following are the steps involved in dyeing the fabric
1. SingeingIt is the first step involved in the dying process which is used to remove protruding
fibers from the fabrics.
2. DeSizingAfter removing the scam from the fabric, temperature is given to the fabric to remove
the size for uniform dyeing (over dry). This process is used to save the fabric from
shrinkage.
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3. ScouringScouring is the step used in the dying process for removing the added and natural
impurities from the fabric.
4.
DetergentsDetergents are being used to remove soil and keep it suspended in Water. So they
dont penetrate again in the fabric.
5. BleachingAgain bleaching powder is being used to remove the stains and other dirt material
from the fabric or yarn which may remain on the fabric.
6. Removing of colorYarn is usually of off white color when in neutral state. But in some cases some dirt
particles or added impurities are there which change its color. For making it neutral and
removing the color from it bleaching powder or liquid bleach is usually used.
7. Length & Fineness of fiberAfter getting the equal lengths and fine fibers, cutting of yarn is being done. Here the
process of Dying got completed.
Strategic Business Unit Analysis
Shalimar has different strategic business units and management at Shalimar is well
aware that how to use these units strategically. In order to fully analyze the business units of
Shalimar that are Weaving, Dyeing, Finishing, Designing, Printing, I have used different
analysis which not only give the true picture of the companys different unit but it also gives
the depiction of the overall industry analysis in which company is currently working.
There are four types of Analysis which I have performed in order to explore the
working of the organization.
Industry Analysis PEST Analysis BCG Matrix Analysis
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SWOT Analysis
All these analysis have been performed by getting data from real time industry
situation as well as the organization. Research articles, news articles, internship reports,
manuals are being used in order to effectively analyze the working of the organization. Thehistorical data for the analysis has been taken or maximum 5-7 years back while current data
till the august 2009 has been used. Due to lack of availability of financial reports I unable to
perform the financial analysis of this organization however revenue as well as cost has be
mentioned by available data on websites and other companys documents.
Industry Analysis
According to the ECONOMIST intelligence report of August 2009 for Pakistan the
following observations have been made: Despite Government efforts to diversify exports and
widen the industrial base, the industrial sector remains dominated by the Textile sector.
Textile Sector still represents 46% of total manufacturing and provides 68% of Pakistans
Export receipts.
The strong performance stemmed from two factors:
1. Increase in import quotas especially by USA, EU and TURKEY2. Textile industry has invested over US$1.5 billion in new technologies and
modernization in the last 5 years.
Efficiency and the innovation in textile is the only hope to get the country out of
economic problems. Beside this economic crisis, textile industry is the only industry which is
still a source of revenue for the country.
Present status of Textile sector in Pakistan
Though the textile sector of Pakistan is well developed while in textile our country is
lacking behind in Textile Engineering Sector, this particular part of the textile sector is
underdeveloped and underutilized. Mostly it caters in the form of spares, components for
modernization and machines used in cottage or small scale industries.
A quick look at the structure of Pakistan Textile Industry shows that most of them are
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cottage industry, small/medium industrial units and few
large integrated states of art units. The number of units which fall under each category varies
from sub-sector to sub-sector. Similarly the Textile Engineering Units also vary from small,
medium and large in size. The Textile Engineering Industry comprises approximately 80%
small workshops, 15% medium engineering Units and 5% large Engineering Units. It will notbe out place to mention that the large engineering units are in Public Sector.
On the basis of initial survey of Textile Engineering Units (Not complete yet),
approximately 500 units are engaged all over Pakistan, employing approximately 50,000
work force which is mostly skilled. Even under the present conditions and without any
support, Pakistan Textile Engineering Industry is providing import substitution worth around
one billion US dollars. This sector also exports to small and medium Textile Units in
Bangladesh, Iran, Sri Lanka, etc.
Competition
The present Textile Engineering Industry is up against competition from smuggled,
under invoiced and miss-declared components, parts and accessories. For example, in case of
second hand machinery, there is little or no check and the competition mainly rests on lower
price. Machines smuggled especially from China, India, Taiwan are not better in quality but
are selling cheaper. A bold initiative is needed which can boost the production as capacity
and markets are there, only change in environment is need.
However if we look at the Shalimar, Shalimar owns the state of the art machinery
which is imported from the Italy and Japan it definitely gives the competitive advantage on
its competitors. Due to globalization, there has become a price war between the local
competitors also. The textile industries are focusing more on succession planning to get
success in future. They are investing in the Research and Development sectors to cut down
the costs and to produce a high quality product.
Besides this, Shalimar has to face competition from:
o Strong local marketo New entrants in international marketo Competition from existing customers
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o Economic recessiono Taxation changes
Before the current time period in the age of year 2003-2006, the whole industry was
in good position in Pakistan and the exports was tremendously improving, internationalbuyers were moving towards the Pakistan as due to availability of quality product on a
cheaper rate but after the year 2007, scenario got change and due to a lot of factors Pakistan
fail to face the competition from the globalized textile units and resultantly units like
Shalimar faces huge losses.
Strong Local Market Competition
From strong local market the competition has been arising from few companies.
These companies are well renowned not only locally but also internationally. In these local
companies, Shalimar has been facing competition at different fields like in some cases,
knitting and in local market in dying and same is the case with the apparel. The Major
competitors are.
Masood Textile Mills
Nichat Mills
Crescent Bahuman
Gul Ahmed Textile
Entrants from International Market
As Shalimar is doing most of its business international, so international market
competition is quite tough and in fact in international competition exists at country level
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rather than at companies level. As the Shalimar is the
major textile exporter is the US and European countries, threats of new entrants throughout
the globe are quite high. The major threatening countries are:
China
India Bangladesh Sri Lanka
Economic Recession
As it is a period of recession and throughout the globe world is suffering from the
economic crisis. In such scenario, affect on textile industry is a natural phenomenon. As the
major sufferers of this economic crisis are US and other western countries and in case of
Shalimar the major part of their exports go towards US and Europe, economic crisis in those
countries causes the Shalimar to certain blockage of sales. Resultantly company started
suffering from losses.
Taxation Change
Change in the taxation policies of Shalimar has also causes troubles for textile
industry throughout the country. Till the age of 2004-2005 there was a massive growth and in
textile business throughout the world were booming but later in the age of 2006-07
government revived its taxation policies which cause a great trouble thorough out the textile
mills. Companies were unable to control their costs thats why in international market
Pakistan loses its control and other rivalry countries like china, Thailand, India, Bangladesh
got in the market.
PEST Analysis
PEST analysis is the analysis which we tend to perform in order to analyze the
external as well as the internal environment in which organization is currently working.
PEST analysis revolves around the four things.
o Political Environmento Economic Environmento Social Environmento Technological Environment
Political Factors
There is not only the national politics involved in the working of the Shalimar but
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international political environment has a direct influence
on the working of the organization. The changes in political government causes to change the
priorities got change and it directly affects the policies, resultantly it has a major impact on
the organizations of that particular industry. There are many factors, which tempt the
organization with Government. Tax policy Rebate Quota Industrial policy of Government in term of textile manufacturer Subsidies from Government Labor policy
These are the general affects which can have an impact on any industry with the
changing in government or political parties. More specifically in textile sector the changing
government induce badly to the companies working in that particular industry some of the
major impact which due to change in political forces happen are as follows.
Minimum Wage Laws
International Policies
Lack of Interest of Local Government
Economic Factors
No doubt that it is the period of recession and about the entire industrial sector got
affected from it and in this case declining period of textile sector is a natural phenomenon.
Economic scenario in Pakistan and all over the word has several affect on the textile sector
some of them are.
Economic Recession
Pakistan has a mixed economy where there is both capitalism and communism
prevailing so the Government intervention in the textile sector is not on the positive side. The
government is not providing any kind of incentives nor subsidies. It is constantly levying
heavy taxes and quotas. In the crisis of power faced by the country, the textile sector has
suffered a lot. The Government did not provide any incentive to the industrial sector in such
a time. The textile industries privately arranged their power generators in such an inflationary
period. This has increased their expenses too much that they are now unable to run their
processes. Shalimar has been one of the targets of such policies also. Due to this, the
company has faced an economic recessionand has closed its units.
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Pricing of Raw Materi al
Due to increasedglobal demandof cotton, the production of cotton and other fibers is
decreasing and this in turn is constantly increasing the price of Cotton. The rising price of
cotton has increased the prices of Yarntoo much. Yarn is the basic thing for the production
of fabric and other products. Shalimar is recently facing this crisis of higher prices of yarnwhich has deteriorated their financial condition too much that all the Dyeing and Knitting
units have been closed.
Oil Pr ices
Increase in Oil pricesand Yarn priceshave caused inflation and Shalimars Weaving
and
Dyeing units have faced recession period. Whereas, the Fabric unit is recovering from
recession and is entering into a new phase of recovery due to an increase in demand ofJeans
and its apparel in international market.
Devaluation of Currency
The strength of thePound sterling, Dollar as well as the higher cost of imported raw
materialshave really made a bad impact on the Pakistan economy in this case selling costis
not aligned with the production cost and companies are not earning as much as much they are
invested in there.
Social Factors
Due to increase in education and technological sector, the buying power of the
customers is increasing at a speedy rate. They are becoming aware about the brands and
latest fashions. Due to this, they are demanding high fashion at a low price in international
market and so the fashion trends are changing at a very fast pace. For this purpose,
Shalimars goal is toprovide latest fashion trends with continuous improvement in fabric.
Besides this, the population of youngsters in foreign countries is increasing day by
day and they are demanding latest trends at large quantity and styles. For this, Shalimar has
to produce fabrics in bulk quantity by decreasing the rejection rate. To achieve greater
quantity, they have to go for latest machinery and skilled staff to produce more and more to
fulfill the demands of the international buyers.
People are becoming health consciousalso and its necessary to focus on the welfare
of the employees by providing them a neat clean and a healthy environment to work in. It is
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also mandatory for the company to educate and inform
people living near the industrial areas about the environment. They should keep the
environment non hazardous.
Technological FactorsTechnology is also a key sector in term of external environment for garments
industry. The technology is working as a substitute for man power with more efficiency. The
industrialist has a solid point that it can save cost in terms of:
o Error reductiono Less labor cost
In order to compete internationally the organization must have to depend on new and
advanced technology. Although the technology, which SHALIMAR was using currently,
wasnot very low but there is no end in business.
Government subsidies
Government has taken initiative to encourage textile industrialists to install latest
machineryso as to introduce efficiency in work. As, textile sector is the biggest contributor
in the economy of Pakistan, the Government has planned to spend on research and
development sector for this purpose. But yet, nothing has been done exactly due to power
crisis and inflation in the country.
Use of I T in M anagement I nformation System
It can be observed that there is an increase in internetuse and mobile technologyat
international level but Shalimar is still not able to communicate efficiently with its foreign
buyers through internet. The obsolete office equipment and the poor availability of the
internet connection are suffering their orders. ShalimarsManagement Information System
(MIS) Department is not competitive enough to upgrade its website contents also.
They do not have the facility of mobile communication system. They are just dealing through
online service by either emails or through telephone calls. But in this competitive and global
environment they need to move to mobile communication to attain growth inE-Commerce.
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SWOT Analysis
Strengths
The internal Strength of the company which its own in the form of human resource,
technology, brand name can be a major reason for its success in this highly competitive
environment.
Strong and Prominent International Image
Shalimar Cotton Export (pvt) Ltd is a well known and a well established company in
the textile sector. Shalimar has set up different contacts with the international buyers over the
years and this clearly is strength for this company. That it is not easy for a company to come
and straight away make a reputation and gain immediate attention of the buyers or customers,
it takes time and Shalimar has taken a long time to make itself a stronger company by
adopting successfully retained its old customers but has also grabbed the attention of other
prominent brands international standards in its products and processes. The Company has not
only.
Latest Technology
This is a very vital aspect of Shalimars success in the export of textile products such
as Embroidery. They are using the latest machinery and equipments in their production. The
embroidery unit is well equipped with latest technology equipments from USA, Belgium,
Germany and Taiwan thus making Shalimar a strong hub for quality product making. Now
the new unit of Shalimar fabrics is being equipped with the latest facilities and the state of the
art machines, which would make it possible to produce 2.7 Million meters of fabric daily.
This is certainly not possible without latest techniques of production.
Competitive Workforce
Shalimar is fortunate to have experienced and well qualified employees in all of its
production and service departments. Production departments have hired well experienced
staff that is specialized in their work. For example the technical manger and productionmanager have experience of over twenty five years which not only make them specialize in
their work but also make them loyal to the company. In the same way, the service
departments have people with Masters Degree from well reputed universities and colleges.
Variety of Products
To compete in International Market by retaining their potential customers, Shalimar is
producing a wide range of products for gents, ladies and children. Fabric unit is producing
400 different types of good fabric in different colors. Latest equipments have been installed
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to achieve this level. The weaving and Dyeing units
which have been closed now were also equipped with the latest machinery to produce export
quality fabric.
Creativity and InnovationShalimar understands and realizes that the door to success lies in the new ideas so for
this purpose they have always encouraged creativity and innovation by adopting the scientific
management system. MIS Department was being set up independently and was authorized to
convert the manual store system and production processes into automatic system to speed up
the work. Research and Development for every unit was also established to promote
innovation through continuous improvement.
Other Strengths
Management Information System ISO Certified Company Diversified environment
Weaknesses
There are some fields in which company is lacking behind in this highly competitive
environment. The weaknesses of the company are
Production capacity
The production capacity of Shalimar is lower than the production capacity of some
competitors. The major reason is the limited production area and less storage space.
Lack of Training and Development
Training and development is an important aspect of an employees daily working. At
times, in Shalimar the new employees are not given the proper training. For example, the
new staff at Accounts and finance department was not given the required and proper training
for the usage of accounting software Oracle Financial, due to which they were hesitant to
use that program. As a result the efficiency of work was reduced.
Boredom Office Environment
The employees have not been provided with the latest and upgraded system to work
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with. They have to work with the obsolete equipments
which not only decrease their work efficiency but also frustrate them. In this way, they spend
too much time on small tasks and waste their energy in worthless tasks.
Lack of Cul ture of I ntri nsic Reward
One of the biggest flaws that employees complain about is that their efforts are not
being appreciated and rewarded. This is the most depressing thing about the organization that
lower downs the morale of the employees. It has been observed that the employees are given
tasks one by one but they are not being recognized for this. The bosses do not spare them for
some time neither have a talk with them regarding the completion of their tasks.
Other Weaknesses
Lack of team work Lack of continuity of Policies Too much Specialized Jobs
Opportunities
Shalimar and other organization like Shalimar has a lot of opportunities, if it properly
utilizes these opportunities than it will be the top most organization.
New Emerging Markets
Shalimar gives opportunity to those people especially who have the ability to work
individually. The organizational culture in Shalimar is based upon individuality that has
made the employees to work in their own direction by not involving in group tasks.
So, the people who work with full honesty and commitment can achieve greater
levels of success and appreciation.
Br ight Local Market
Shalimar is currently working as an exporter for US and other European countries. It
is not currently working on the local market which is also a bright market. People trends are
changing and are moving towards brands. There are very successful brands which are
currently working at local level. In these local textile brands are
Gul Ahmed
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Chenone
Saphire polo
So, Shalimar should also thinking to go for such opportunities if it really wants to
compete with in this highly competitive environment.
Threats
Beside these opportunities which Shalimar and other organization working in
Pakistan have, they have also face a lot of threats while working in the Pakistan.
Non-supportive government
There have always been risks involved in the textile sector of Pakistan and so
Shalimar has to face the same threats. Changing Government policies and inflation in the
country is creating problems in the production of garment.
Shalimar has to put out itself from every crisis without any Government help. Even in
the power crisis the Government is not providing any favor to textile sector to run their
business. The company has to arrange private energy sources to keep themselves alive in the
near future which would cost them a lot.
Government Pol icies
The entry of strong competitors in international market like China and Taiwan, there
is a possibility that the Shalimar could lose its market share in if it not lowers its price. These
countries have stride at a rapid pace over a few years and many of the international contracts
are going from Pakistan to these two countries. They are offering far less price with huge
amount of creative designs due to which the buyer is somewhat attracted. Its a threat in the
long run.
Growing Competition
Due to globalization, there has become a price war between the local competitors
also. The textile industries are focusing more on succession planning to get success in future.
They are investing in the Research and Development sectors to cut down the costs and to
produce a high quality product.
Politi cal uncertainties
The political situation of the country is quite unstable this causes to lose the
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confidence of the investors. Local as well as foreign
investor hesitates to invest in the country. Beside this political situation of the country,
changing in the government causes a lot of problems like
Late deliveries Higher lead time Instability of Political policies Changes in taxes and tariff
These few and many other political threats are faced by the textile industries all over
the country and getting affected of Shalimar is a natural phenomenon.
Free Trade AgreementsThere are a number of reservations about free trade agreement of textile companies
working in Pakistan. The cost of production of neighboring countries is much lesser than the
Pakistan and this create a hurdle for Pakistani entrepreneur to survive in international arena.
Departments of Shalimar
The departments which are of strategic importance for Shalimar Cotton Export (pvt) Ltd. are
Human Resource Department Merchandising & Marketing Department Finance Department MIS Department Export Department Production, Planning and Control Department
Quality Assurance department
All these departments are of strategic importance and work cross functionally, the
working of one department affect the working of the other department and in this way the
whole corporation work. On broadly basis the Shalimar has been divided on two grounds i.e.
services departments and production department. In services department, there are four
further departments that are services and compliance department, admin department, human
resource department, MIS department.
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While in production department, there are further
lists of department which are usually there to support the production of the organization. In
production wing the important departments are merchandising department which is
responsible for selling of the production, production planning and control department which
is responsible for planning of the production and the raw material as well. Quality assurancedepartment is also there to ensure the quality of fabric. Purchase department is there to ensure
to provide the accessories for the production like fabric and stitching material etc. For
international client export department is there which ensures the international boarder
policies are being followed by the organization and the violation of these policies are not
being done. In this way, the whole corporation work. In my further discussion I will briefly
explain all of these departments.
Human Resource Department
Shalimar is one of the leading manufacturing units in Pakistan that has a large number
of employees. Keeping in view the present trend in the field of Management as well as the
requirement of the quality certification organization Shalimar separately developed its human
resource department which was working under admin department earlier. The Management
at Shalimar believes that it is very important for every organization to develop a world class
Human Resource department to harness the skills and knowledge of their people to achieveexcellence in product, procedures and quality systems.
The Human Resource Department at Shalimar has been formed at the end of 2006 to
accomplish international quality standards at every level. The department is providing
support to top level management in recruitment, selection, compensation as well as in the
field of Training and Development. The functions which Human Resource departments
currently perform at Shalimar Cotton Export (pvt) Ltd. are
Recruitment & Selection Compensation Management Training and Development Performance Appraisal
As the major time period I have passed in Shalimar was in human resource
department so /I have a lot of knowledge about this particular department of the company
and in this report will give you a more detail look of this department as compared to the other
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departments. In broader view human resource
department has not most modern practices which support this department in order to get its
real objective. Management usually took this department as an expense and cost on the
organization. In order to cope with this expense department, a lot of other responsibilities
have also been allocated to this department which is actually not the responsibility of thisdepartment but the incumbents of HRD must be obeyed. For example a HR manager has
nothing to do with payroll but at Shalimar HRD and pay roll work cross functionally and
provide support to the pay roll department as to decrease the burden from the payroll
department.
Human Resource Department Philosophy
Shalimar Group has formed HR department in recent years so as to provide a soundand competitive human capital. They believe that their HR would provide a core competency
through training and development of new and untrained employees in a more efficient way.
Human Resource department of Shalimar Cotton Export (pvt) Ltd. has been developed to
deal with the intellectual capital, emotional capital as well as the social capital.
I ntellectual Capital
Intellectual capital means to develop the specialized knowledge and skills in the
employees by keeping in view the future needs of the organization.
Emotional Capital
Training the employees particularly at managerial level for developing the future
leadership in which the characteristics like self confidence, ambitious and courageous
workforce need to be develop.
Social Capi tal
HR department core philosophy is to develop such a workforce which has a long term
relationship with the organization. Shalimar believes on life time employment policy thats
why it awards benefit on the job as well as after the job i.e. retirement benefits.
HR Objectives
Following are the objectives of Shalimars Human Resource Department to accomplish
its goals and to achieve core competency.
Committed and Dedicated workforce
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Training and Development Compliance with Labor Laws Record Bank for future Hiring
Functions of Human Resource Department
Human Resource department at Shalimar Cotton Export (pvt) Ltd. perform about all the
important functions regarding the human resource. Usually the best of the practices are being
used in the Shalimar regarding the Human Resource. The major functions which are being
performed in the Shalimar group are
Recruitment Selection Training and Development Performance appraisal Retaining and Rewarding
Merchandising & Marketing Department
Merchandising is a global process through which products are produced, sourced, and
sold all over the world. Merchandisers must have leadership for the value chain (developing,
distributing, and selling products) in a global market.
Merchandisers need to see "the whole process" from product innovation through
consumer satisfaction. This requires logical thought processes such as problem solving,
decision-making, and resource management. It is a critical need for merchandisers at
Shalimar, which has strong business background, yet it also stays focused on fashion or other
products that undergo continuous change in the consumer-driven market.
Objectives
Here, the merchandising department is mainly divided into accounts buyers. This
shows that there is individual or a team of merchandising, who takes care of a specific buyer
or account. Merchandising serves the following purposes at Shalimar:
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Gateway
It acts as a bridge between buyer and the company for communication. The success or
failure of getting customer as well as successfully deliver the product depends upon
the Merchandising department.
Marketing
Merchandiser has to market his company in order to increase his customers and
generate more and more revenue. It is the single department who are actually
producing the revenue for the organization and rest of all the departments are used to
spend the money.
Costing
Merchandise makes a cost sheet to see if the product is feasible or not in terms of cost
and revenue. Merchandiser has to calculate the cost of products including all wastes
and accessories to tell the final cost of the product to his customers.
Negotiation
Merchandiser must have a negotiating power on the price to convince his buyers on
specific price to lessen the chances of loss.
Sampling
Merchandiser must send the sample to his buyers for confirmation and satisfaction. At
this stage, Sampling is also done to avoid loss.
I nformation Management
As merchandiser has direct contact with his buyers so the buyers have to give
information about their products requirements and if there is any problem the
merchandiser has to inform his buyers in return.
Implementation
It is the responsibility of merchandiser to prepare the product according to the
requirement of buyer.
Process of Merchandising
At Shalimar Cotton Export (pvt) Ltd, the merchandisers are responsible for carrying
out the merchandising activities, it is not a straight forward one step game rather it is a
complete process which started from initial inquiry of the customer and end at the delivery of
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product.
I nitial Inquiry
An initial inquiry may be a simple fax describing briefly the target price and product
or it may be detailed package from a buyer describing in detail.
I ni tial Research & Development
Initial Research & Development or preliminary discussion is carried out with research
and development department to see if the company has the capability to produce the
product in terms of man and machines.
Costing
Merchandise makes a cost sheet to see if the product is feasible or not in terms of cost
and revenue. For this purpose a cost sheet is prepared, keeping in view the styling and
accessories to be used on the product.
Approval
After the cost sheet is prepared it is presented to the CEO or any other approving
authority for approval. The approval is mainly granted keeping the profit in view.
Merchandising process continues if a specific cost sheet is approved.
Order Booking Status (OBS)
Once an order is received it is mentioned in order booking status. OBS is extensively
necessary to maintain the track of records, capacity optimization, and planning further
through OBS strategic planning is also carried out. It helps in calculating cash in and
out follow. OBS is normally kept confidentially and it is only accessible to predefine
personal.
Sampling
It is the complete process through which sampling approvals are taken. It starts from a
proto sample and ends at shipment sample depending on the buyer as different buyer
have different sampling requirements. Samples may be paid or free depending on the
category, quantity, contract with the manufacturer.
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I nformation Management & F orwarding
All information received from the buyer is forwarded to the relevant department in the
factory as to PPC package, checklist, accessories etc. information is provided which
in terms is processed by the PPC and is forwarded to the relevant departments to start
production.
Buyer & Country Dependence
It is always better to establish an optimum buyer that dependence on the buyer be
balanced so that just dependence on the buyer is also avoided and on the other hand
dependence on too many buyer is also not recommended.
Updating of OBS (Order Booking Status)
OBS could Management Information System lead document in case it is not properly
updated. Special checks need to be maintained for proper upgrading of the OBS ad if
data on the OBS is incorrect capacity and management could be seriously affected.
Quality Assurance Department
The purpose of quality assurance department is to provide the customers with quality,
satisfactory and reliable testing services. The strategy is built around plan, do, check and act
(PDCA), and is reflected in the Shalimars quality oriented system. To achieve high quality
standards, management is continuously investing in up gradation of skills, system and testing
equipment. It also believes in training and team work for successful implementation of high
quality standards. The slogan of the Shalimar is to buy quality, make quality & sell quality.
At Shalimar, quality is first priority for getting customers satisfaction. It is cornerstone of the
success today and tomorrow.
Quality Assurance
The proactive quality assurance system at Shalimar aims to get it right the first time
by rectifying any discrepancies during the course of the process. All the steps involved during
production are documented with continuous feedback into the production process allowing it
to develop further.
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The main component of quality assurance department is specifications of end product
and its quality criteria Documented instructions and the methodology to be followed.
Performance analysis and recording system at every stage to minimize reliance on end-product testing.
Quality is a combination of Skills, System & Equipment so and continuously
investment in training our personnel, revising & improving our processes and systems and
upgrading our testing equipments. Quality checks are made at every stage of the
manufacturing process starting from raw fiber to delivery of final product.
Finance DepartmentFinance Department at Shalimar Cotton Export (pvt) Ltd. is an active body of the
organization having responsibility not only to provide the financial information about the
company but also facilitate the worker in financial services internally in the organization. It
works cross functionally in the organization with different departments. It also provides the
up to date information regarding the financial position as well as a complete review of
revenue and expenditures of the company. As Shalimar is a private entity, so providing
record of their financial assets is not obligatory on it.
Functions of the Department
o Maintenance of books of accounts and preparation of financial statements forthe company so that to be reviewed by the internal auditor of the company.
o Coordination and facilitation for Business planning and budgeting functionin the company and periodic reporting to the management and to the Board.
o Policy & operations related coordination with Management as well aswith the banks to ensure smooth working
o Maintenance of employees accounts/ investments and execution ofpayments and receipts.
o Maintenance of accounts relating to loans taken by the employees or bythe management on behalf of the company by the bank.
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Research and development Department
Research and development or R&D department is related with product development.
It calibrates merchandising activities and forwards the fabrication information into the
product library and gets the exact match. If there is required match, Documentation and
Planning is done, March is developed and PD (product development) Plan is made by the PD
center. If there is no exact match, Technical evaluation (Pricing), Documentation and
Planning is carried out.
Objectives
It issues the work order, tells about the style, design, counts, gauges, fabricfinishing routes and fabric dyes.
It is responsible for to set standards for quality as well as for pricing byglobally visiting the market.
It is responsible for to develop the latest fashion trends as well as to developthe method for producing a quality product in a reasonable cost which the
customers can afford.
Quality Product Requisition (QPR) is made in Research anddevelopment department of Shalimar Cotton Export (pvt) Ltd. .
R&D department facilitates where an idea can be accurately converted in toproduct in quickest turnover rate.
Through its proper planning research and development department is responsible for
maintain as well as for Delivering of all types of samples with speed, accuracy, quality and
competitive pricing.
Management Information System
Shalimar Group has been the pacesetter in Pakistan by adopting scientific
management techniques in the Cotton Industry. For the purpose, an MIS department was
established quite early on and given the same freedom to innovate as any skunk works unit.
The MIS department has an in-house intellectual software development facility for
delivering a powerful stack of technology and comprehensive pre-integrated enterprise
business applications. These applications contain key functionality built specifically to
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enhance top-level management's control over routine
operations and to support their decisions.
The following enterprise business applications have been integrated for better plant floor
to boardroom management:
Oracle E-Business Suite Group Level Financial Management System Human Resource / Payroll Management System (HRMS) Material Resource and Inventory Planning System (MRP) Integrated Manufacturing and Production Monitoring System (PMIS)
Production planning and control (PPC)
Production Planning and Control (PPC) is the nervous system of the organization and
its basic task is to receive information from the merchandising department and link it to the
production. It involves the Pre-Production Analysis to ensure quality and reproducibility.
Monitoring is done for the whole production process and in this we check out the planning
implementation. If the planning is failed, re-planning is done for that. Off- the- track and on-
the- track planning is also done by the PPC. PPC works in collaborates with R&D department
and also get the information from the cutting unit. In this Quality Plan specification, quality,
width, weight, dyes, gauges and counts are mentioned. PPC receive Fabric Consumption
Patterns from the Cutting department and plans that how much fabric must be used.
PPC has two further branches
1. Material Resource Planning2. Production Planning and Monitoring
1-Material resource planning
Material Resource Planning is done for the material procurement, like sundries, yarnand fabric. It is basically done to analyze that how much is needed, what is needed, when is
needed, what is the cost of the material and how to acquire the resources.
2-Production planning
It includes the planning like the Sewing Plan (we can also call it as the Master Plan).
Backward Production Planning is done and this Production Time Line involves whens and
whats of the production. Date Wise Plans are made from work order to delivery.
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Documents generation in PPC
Store Plan
Store Plan can also be called as Accessories Plan. It involves all the documentation
about the sundries being used in the production of the order. It also involves the information
about Threads, Buttons, Sewing and Labels. Store Plan is basically a Quantity Plan.
Dyeing Plan
It is related with the Dyeing of the fabric that how much fabric is required for an
order, and then it is converted in to the Acro fabric. It plans for how much dyes and
chemicals are required. For the procurement of the materials, PPC goes for the purchase
department.
Extra Planning
3-5% extra planning is done for the losses. There are some visible losses and some
invisible losses. Visible losses occur from cutting to shipment. Invisible losses are being
made in Dyeing process and Finishing Process. Any extra planning requires extra cost. So for
the additional planning and additional cost, PPC managers have to go for the Chief
Executive.
The Production Planning and Control is the nervous system of our organization and
undoubtedly it is our key success factor. The nucleus of Shalimar and Sarahs remarkable
success has been its impeccable system. PPC conducts detailed pre-production analysis to
ensure quality and reproducibility.
Purchase Department
Every aspect of organization for the manufacturing of the product like sundries,
stationary, parts of machineries that can be available locally, chemicals and dyes etc. have to
be purchased locally from the local markets. These are usually the general items, involve
local purchase for the purchase of machines machinery that is not available in the local
market, import department involves in such purchases.
This whole import department is concerned with the high involvement machinery.
They whole purchase department is do not work the work order or purchase order. Things are
purchased according the buyer demand. No buying is done without the order. As such no
inventory level is maintained for such goods as these goods are utilized immediately and plan
is made for the minimum for the week. Three most important documents are used in the
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purchase department.
Store Plan Store plan comes from the Store and purchase Requisition; It comes from
the warehouse. Buyer provides purchase Order and according to this the store department
make plan. It is made for one supplier only at one time only. Demand of the supplier ismentioned in the purchase order. These documents are used all over department.
Responsibilities of Purchase department
Purchase department is of primary importance in the organization, it fulfill and manage
the resources for the organization and ensure smooth functioning. It has the following
responsibilities.
Procure all goods and services required by the company.
Determine the most appropriate and effective method of acquisition for each requestfor purchase
Assure that best value in all procurements is obtained as authorized under Handbookof Operating Procedures.
Verify sufficiency of departmental funds for purchases Maintain a link with the Texas Building and Procurement Commission as needed on
procurement matters. Conduct all formal communications with vendors regarding purchases
Provide assistance on procurement matters to all departments.
Working of Purchase department
Manager from the entire departments can send request to procurement department by
using the MPR form, on the behalf of this MPR form purchase department is responsible for
the procurement. After a suitable purchase, the material has been allocated to the required
department.
There are two forms usually used for the purchase as well as the delivering of the
material in Shalimar Cotton Export (pvt) Ltd. . These are
MPR: Materi al Procurement Recogniti on
Every department issues this then the purchase department is responsible for
procurement. Verification is being done later on by an internal auditor of the company that
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the material purchase was necessary or unnecessary.
MRP: Materi al Requirement and Planning
This document is used within factory for issuing the material. The quantity as well as
quality of the material is being checked by the manger of other department and a self audit isbeing done.
In this way, procurement department at Shalimar Cotton Export (pvt) Ltd. perform
the procurement activity, and the material purchase is being done systematically. In case
of violation of any rules written in manual can cause the charge of fraudulent activity.
Marketing Mix (4Ps)of Shalimar
Marketing mix is the term tends to define the four things on which the wholemarketing campaign of the company revolves around. The four necessary components of
marketing mix are product, price, promotion and placement.
Product
Though Shalimar is major exporters and its customers are business customer,
however the manufacturing product fall into the category of Consumer Products. Consumer
products are those products that are purchased for personal use. Shalimars Garments aredurabledue to their high quality fabric used for knitting and stiffness and tear strength in the
Good fabric.
In consumers products, these garments are included in Shopping Products. Shopping
products are purchased only after the buyer compares the various products and brands
available through different retailers before making a deliberate buying decision.
Similarly,Shalimar offers a reasonable price, good quality, various colors and styles
in their garments. And most of the advertisement is done through electronic media that
includes internet, mails and telemarketing.
Core Product
Core products are those products on which the business is actually based upon. In
core products which Shalimar offer is usually the finished product includes the Fabric, Home
Textile Products, Industrial Textile, Embroidery etc
Beside these finished products, Shalimar also offer fabric or Cotton to its customers, this may
include the fabric.
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Augmented Product
Augmented products are those which are offered by a company to its customers by
developing some enhancement or some value addition. In case of Shalimar, the augmented
product which is being offered by the Shalimar is its apparel products includes equipment for
institutions like hospitals or fabric Pants and trousers.
Price
Pricing of a product matters a lot whenever we are going to sale a product, in this
highly competitive environment pricing matters a lot and the sale volume as well as the
success or failure of a product all depends on the pricing. Shalimar is practicing the Pricing
Strategies to attract the new buyers and to retain its major buyers.
The company adopted the Market Penetration Pricing Strategy in the introductory
stage of product life cycle for both the Fabric and the HOME Textile. International Pricing
Strategy has been adopted along with the other discounts to overcome the competition.
Following strategies have been adopted in the growth stage of Fabric.
Product Line Pricing Due to Different Product ranges as each
different design and material Cost.
http://www.shalimarcotton.com/Products/institutional-textile.htmlhttp://www.shalimarcotton.com/Products/embroidery.htmlhttp://www.shalimarcotton.com/Products/home-textile.htmlhttp://www.shalimarcotton.com/Products/fabric.htmlhttp://www.shalimarcotton.com/Products/institutional-textile.htmlhttp://www.shalimarcotton.com/Products/embroidery.htmlhttp://www.shalimarcotton.com/Products/home-textile.htmlhttp://www.shalimarcotton.com/Products/fabric.htmlhttp://www.shalimarcotton.com/Products/institutional-textile.htmlhttp://www.shalimarcotton.com/Products/embroidery.htmlhttp://www.shalimarcotton.com/Products/home-textile.htmlhttp://www.shalimarcotton.com/Products/fabric.htmlhttp://www.shalimarcotton.com/Products/institutional-textile.htmlhttp://www.shalimarcotton.com/Products/embroidery.htmlhttp://www.shalimarcotton.com/Products/home-textile.htmlhttp://www.shalimarcotton.com/Products/fabric.html8/13/2019 Omi Shalimar
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Product Bundle Pricing For the major buyers to retain them
Optional-Product Pricing For additional features
Discounts
The company also offers discounts if the payments of bills has been made earlier or in
other situation, volume purchase is in bulk. Broadly speaking company is currently offering
two types of discounts.
Early payment of Bills Volume Purchases
Cash Discoun t
2/10, net 30 If the buyer pays the Bill within 10 days then he would be given
a cash discount of 2 percent on each item.
This discount reduces bad debts and credits collections.
Quanti ty Discount
Shalimar offers 50 percent discount on each unit if the order exceeds 100 units.
Promotion
Company is using the push as well as the pull strategy in order to attract its target
customers. Usually internet is the major source of promoting its products beside this other
modern techniques are also widely used by the company in order to selling of its products.
Target Market
The target market of Shalimar is the Major international buyers or such brandnames that get their products from Asian countries and sell it to the European or other
western countries. To get connected with its target customer Shalimar is using the
massive media in order to promote its product.
Major Buyers
Shalimars buyers are very discerning and vigilant to the quality of the end product as
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well as the services provided. Its association with these
globally recognized and renowned brand names speaks volumes of the product and services
they offer.
As Shalimar Cotton Export (pvt) Ltd. is offering a variety of products so the targets
buyer are also different depending on the market in which they are offering.
Placement
Shalimar has adopted the Vertical Marketing system, in which Shalimar, the
wholesalers and the retailers are acting as a unified system. Shalimar sells its Products to the
wholesalers of the Branded Companies. Later, these wholesalers sell the products to the
retailers in bulk quantity. Some wholesalers have contracted with the retailers and the others
are cooperating with each other.
Some time Physical distribution of product is required, for this purpose Shalimar has its
own delivery coaches and a proper system, with the help of these coaches in Lahore and
Karachi, local orders are being delivered by Shalimars own delivery system while national
and at international goods are being transported through mass transit system which can be
some truck, railway or by air cargo services. The process of delivering the goods follows
through in this way.
Purchase order is being received from the buyers through the merchandizingdepartment.
A fax message is sent to buying house/buyer for opening L/C.Expected Audit date/time is being received.
Arrangements are made for the transportation to move the consignment by theroad/train/air as per plan.
Funds are being arranged for the transportation and custom clearance. Shipment moves for the Karachi is being planned through the following ways. E.g.
Truck, Train, and Air. (Rates are as per shipment volume)
Forwarder / clearing agent make arrangements for the custom clearance and booking of
the space at earliest vessel. The requirement of the exports are being fulfilled by the agent,
the general requirement for the export of the fabrics include the invoice, packing list, export
form, valuation form, bill of entry and shipping bill. While going for to deliver the goods
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proper arrangements are must so that, the goods can
easily be shipped to the customers. If in case the shipment process gets delayed or any other
problem occurs during the shipment, it will not only cause the financial losses but the
company good will also got ruined.
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Recommendations & Suggestions
The company should launch its products for the home market with a specific name
which will give expansion to the company, loyalty of customer and future benefits as well.
Some of the important recommendations in my point of view are;
The company should update its DBMS for more accurate results The company should spread its business throughout the world and discover new
markets
The company should make new plants in those areas where labor is available at cheaprate in order to minimize its costs.
The company should also focus on local market The company should also motivate its employees by providing them non-cash
incentives in order to achieve desired results.
The company should also expand its business by launching its own brand in garmentproducts because it has the potential to do this.
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was thinking that working in an organization is more
valuable and a piece of cake and my attitude was not so much professional or formal to work
in some organization but after this internship, I feel a very positive change in my attitude and
It make me mentally prepare to work in some good organization.
Corporate Cul ture
University culture is quite different than the corporate culture, in university students
usually take the thing just formality while in corporate sector you actually have to perform
other wise for you there will be no place in the organization.
Organization Structure
I have to face the organization structure which was highly bureaucratic in which there
is centralized decision making authority and you just have to obey the order no matter, right
or wrong beside this at the end incumbent is the only person who will be responsible for the
results so, you have to act according to the situation and have to remain attentive.
Professional Atti tude
Going out from the university in an organization is quite good experience as in the
university or college life, you are with your friends and remain informal while in organization
you have to be formal, there may be one or two of your friends but more of the other are your
colleague and the environment in organization is usually very competitive, you have to wear
a professional attitude otherwise it will be very hard for you to survive.
2- Knowledge Enhancement
This internship was very much beneficial for me, in one side it develop a professional
attitude in me while on the other hand it also enhance my knowledge and a lot of new things I
come to learn. There are few things which I wanted to mention here.
I SO Certif ication
As Shalimar Cotton Export (pvt) Ltd. is ISO 9001-2000 certified company, while
working here with this organization I got the opportunity to learn about the ISO certification
procedures and requirements to become an ISO certified company. I also got the opportunity
to interview the ISO officials which really enhance my knowledge about the quality
certification processes.
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Limitations during Internship
As an internee in Shalimar exports, I have to face a number of difficulties which
create hurdles for my learning as an internee in this organization. Some of the constraints
which may limit my study are
Time Constraints
Due to short period of time, it was difficult to go for the in-depth analysis of each and
every department of Shalimar Cotton Export (pvt) Ltd.
Field of Study
As my field of specialization is Marketing, so my focus was on the Merchandising
department rather than all the departments of the organization but I have compensated this
issue by visiting these departments and getting the required information for my report.
Data Secrecy
Shalimar is a Private Limited Company, which does not allow sharing and
transferring its private data. Due to unavailability of Annual Report, the financial analysis
could not be carried out and the companys important documents could not be available. All
forms and documents are attached here are just specimen which are very close to the original
one but these are not original due to the data secrecy issue.
Communication Barriers
As there is autocratic culture of Shalimar Cotton Export (pvt) Ltd. and the
management here is very bossy and there is a communication gap exist between the
management and the rest of the employees, this communication gap also create hindrance for
me to getting the data from top management.
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The Effect of Internship on my Future
Career
Flexibility in work environment matters a lot; I have learnt it while I was doing my
internship in Shalimar Cotton Export (pvt) Ltd. The office environment is always remainintensive and the individual have to manage it accordingly in the office, in case of failure he
will be no more at the job; this is in the ethics of the work environment and all these ethics
become more exhaustive when you are in the human resource department and have to deal
with all type of employees. You have to prove yourself a calm and pleasant personality.
As I was not the responsible person for that office and in actual was acting as an
observer or a learner. So, I learn that behavior by observing the people in the Merchandising
department that what type of personalities you have to face daily and you have to manage it
accordingly. Might be if without this internship I go somewhere in the market, I may commit
thousand of such mistakes and employees get curse on me but after observing all that the job
of Merchandise manager is very sensitive and a certain image of Market has been cultivated
in my mind, now whenever I will go to some market I can perform well and I am cent
percent sure that without this internship I cantdo that effectively as I can do after that.
This internship proves better for me in two way, on one side it help to develop a
personality in me which exactly match the person of Merchandising department and secondly
it help to strengthen my decision about the specialization in Marketing as my personality
exactly match the nature of job.
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References
www.shalimarcotton.com
Mr. Waqas Ijaz (Director Shalimar Cotton Exports pvt Ltd)
Mr. Abdul Qaddoos (IT Manager Shalimar)
Mr.Bilal Ahmad (Marketing Manager Shalimar)
Mr. Husnain Habib (Supervisor Manufacturing Shalimar)
Mr. M. Usman (Exports Manager Shalimar)
Employees and Other Staff members of Shalimar Cotton Exports pvt Ltd
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