this report is dedicated to my father who is not with me

SHUJABAD WEAVING MILLS LIMITED

REPORT ON INTERNSHIP

FOR MBA PROGRAME

OFALLAMA IQBAL OPEN UNIVERSITY

Prepared By

Muhammad Shahbaz

S/o Muhammad Shafiq

Roll# Q579638

Reg#05PMN-0238

Address:C/o Aziz Shop Keeper Double Phatik

Old Shujabad Road, Chah Thala Wala,

Multan.

Cell# 0302-7487568

SHUJABAD GROUP OF INDUSTRIES, MULTAN


Acknowledgement

Countless thanks to almighty Allah, the lord of the whole universe and the

greatest force behind my success in my life. I also pay my heartily to Hazrat

Muhammad (Peace Be upon Him) whose whole life is marvel and model of any

person belonging to any walk of life.

I feel great pleasure and honor to express my Heartiest gratitude and deep sense

of obligation to my supervisor professor Mr. Mumtaz Mofti for his keen interest

skillful guidance, enlightened views, unfailing patience, mastery advice, inspire

attitude and valuable suggestions for the accomplishment of present study. In

fact it was not possible to bring this work to fruitful conclusion with out his day

and night persuasive and sincere efforts.

I pay my gratitude to all other respected teachers of Allama Iqbal Open

University. Especially The Voice Chancellor of the University “Prof. Dr.

Mahmood H.Butt“ is an ideal personality and it is a great blessing of Allah that

we have the opportunity to learn from him.

I am highly indebted to “Mr. Mohsin Hanan (GM Marketing Shujabad Weaving

Mills Limited)“ who provide me useful information during the internship

program.

I am grateful to those who have directly and indirectly contributed towards the

preparation of this assignment.



Finally I would like to thanks to my adoring parents, for their day and

night prayers, sacrifices, encouragement, moral and financial support

through out the course of study.

Objectives of Studying the Organization

Managers and scholars assume that there exists something

that can be called ‘an organization’ and that this entity has

human members who can be distinguished from non-members.

But this assumption is increasingly challenged, as it is

increasingly unclear how to identify the human boundaries of

organizations and the constituency defining their members. Are

customers a part of the organization? What about individuals

employed through a temporary employment agency or through

outsourcing suppliers? We can no longer easily distinguish

organizational members from non-members. Some provisional

criteria regarding this distinction maintained in the

organizational studies literature are insufficient. The bottom line

is that what connects people in and to organizations are

emotions. Those who feel a link to an organization are critical

organizational constituents, and those who do not feel this link

are unlikely to promote organizational goal. Emotion can no

longer be assumed to be outside managerial responsibilities as

it is inherent to any human and therefore organizational



process. Recognizing the complexity of emotion in modern

organizations is essential to successful management.

MISSION STATEMENT

Mission of Shujabad Weaving Mills Ltd

Mission of Shujabad Weaving Mills Limited is “To produce superior quality

fabric to face competition in the international market and to train the staff

at the world-class level to enhance the maximum shareholders value”



Historical Perspective

The Shujabad Weaving Mills Ltd was incorporated and set up in Multan as a

public limited company. It is one of the first few textile mills to be established in

the country with modern air jet looms.

The Shujabad Weaving Mills Ltd is situated in Qadirpur Rawan By-Pass, at an

area spread on 115 acres of land, and from the very inception, it had been

designed as an integrated unit. It commenced its business operations in 2005-06

with 96 looms and finishing capacity of nearly 52,000 meters per day. In the mid

50’s sponsor of the company decided to divert its production exclusively towards

exports and became the pioneer company to have commenced export of grey

cloth from Pakistan in 2007.

With the passage of time, the company grew in stature and its sponsors became

to be known as Shujabad family. This is the growth period of the Shujabad family

business, as the company diversified their investments to more feed mills, oil

mills, cotton ginning units, chicks mills & rice mills. and so the Shujabad family

came to be known as the Shujabad Group of Industries.

As year’s road on, the Shujabad Weaving Mills Ltd continued to expand its

exports and earned the reputation of being the leading exporter of fabric and

various products in the home textile sector. The company’s prosperity is broad



about a better quality of life for those who worked for it. The company provides

accommodation for its employees, staff and executives as well as plays grounds,

parks shops, community centers, and industrial homes for their welfare. It insures

that its work force is happy and their families are well cared of. In its desired to

forge ahead in the competitive field of the home textile sector, the company has

made investments for updating and modernizing its machinery and equipment

and insures training of its employees by hiring and contracting its experts in

textile for its workers for its staff.

As well as sending executives to recognized institutes in the country and abroad

for specialized training in management, accounting, IT and technical training. It

was the first textile company to introduce quality circles even at the worker’s

level. The main architect of the sales in the marketing of the Shujabad Weaving

Mills Ltd has been its Chairman, Mr. Abdul Wahid, who has led the company for

the front.

For the year ending in September 2007, the company had generated export

sales revenue of $60.94 million, of which clothe accounted for nearly US $ 33.95

million; made ups in the textile sector accounted for US $ 14.16 million; fabric

sales accounted for :Us $ 10.31 million.

The Shujabad Weaving Mills Ltd has been introduced as a public limited

company under the company’s ordinance on 16 May 2006.

List of directors is shown below:

Mr. Abdul Wahid (Chairman)

Mr. Qaiser Shabbir (Chief Executive)



Mr. Muhammad Akram (Director)

Mr. Muhammad Tariq (Director)

Organizational Structure

Head Office


CEO

GROUP CHIEF FINANCIAL OFFICER GM MARKETING GM ADMINISTRATION

MANAGER ACCOUNTS

SNR. ACCOUNTS OFFICER

CHIEF ACCOUNTANT

FINANCE OFFICER

ACCOUNTS OFFICER

GENERAL ADMINISTRAION SECURITY


Marketing Department Structure


GM MARKETING

MANAGER MARKETING MANAGER EXPORT

DEPUTY MANAGER MARKETING

EXPORT OFFICER EXPORT OFFICER

MARKETING OFFICER


Structure of the Marketing

DepartmentMarketing department in Shujabad Weaving Mills is working as:

GM Marketing.

GM Marketing is doing:

Controlling local marketing

Controlling export marketing

Making local contracts with buyers

Making export contracts

Searching for new markets locally and outstation

Promoting sales

Settle marketing relating issues with buyers

Coordinating between marketing and production department

Satisfying buyers

Deputy Manager Marketing.

The Deputy Manager Marketing is the second one to the GM Marketing for local

sales. He normally performs the following actions:



Getting local orders

Making local contracts

Controlling the documentation of local and,

Export sales

Checking the complete documentation of local sales

Coordinating with Accounts

Receiving payments from buyers

Marketing Officer.

Marketing officer is liable to do the following:

Preparing the local contracts

Preparing the export contracts

Preparing delivery orders

Complete documentation of sales

Assisting the Deputy Manager Marketing

MARKETING STRATEGY

Although it may be the duty of the commercial manager to ensure availability of

yarn at a reasonable price, it is the exclusive responsibility of Shujabad Weaving

Mills to implement the total quality management concept. If units are able to

minimize wastage, optimize cost of production, improve quality standards, ensure

product diversification and learn to market the finished products, no country can

compete with Pakistan.



Taiwan, Hong Kong, Korea, Japan, Bangladesh are the large manufacturers and

exporters of value added textile products, but are dependent on Pakistan and

other countries for their requirements of cotton, cotton Fabric and fabric. Their

edge is in finishing good quality fabric & producing attractively designed

garments maintaining quality standards and abide by delivery commitments.

These countries also follow different marketing strategies, while the Pakistani

manufacturers first produce a product and then try to locate a customer; other

countries produce what the importers demand.

Not only this, buyers are often willing to pay a premium for odd specifications,

short delivery time or immediate commencement of shipments of small lots, extra

care in meeting specification and better quality standards, using better quality

package which may not cost as much as the premium offered.

Lately, the manufacturers of Fabric having pragmatic thinking and realizing the

tough completion have started producing dyed cones. They have not only tabbed

a new market segment but also get better return. Isn’t it innovative marketing?

Shujabad Weaving Mills have to realize the harsh reality that the days of cheap

domestic yarn are over, the import of textile products is being gradually open and

quota regime will be phased out gradually. They know their capabilities as well as

shortcomings, products they can produce and the products the foreign buyers

demand, we have to plan today how would they market their products is the days

to come.



MARKETING ACTIVITIES

Supply and Trade Information

yarn is purchased directly from spinning mills or import on cash payment basis,

the company carries around 6 month’s supply of yarn at time. The buffer stock for

yarn is 25-30 days during lean months. Purchasing usually starts as per demand

by the production department to fulfill the different orders. The company

emphasis on acquisition of the best possible quality of fabric. The purchase

process continues throughout the year.

Spare parts and dyes, chemical etc are imported. Dyes and packing materials

are purchased locally. The credit period for local purchases is 45 days and 15

days on dyes and packing material respectively. Polyester fiber is purchased

from local manufacturer of 120-150 days basis.



Distribution and selecting terms

The company exports are the major portion of cloth production. In the local

market fabric is sold directly to brokers who in turn sell it to other mills for further

processing. Grey fabric is sold on cash basis. Local sales account for 25% of

total turnover and are made on cash/credit basis.

Managing marketing information

Marketing consist of people, equipment and procedures to get, sort, analyze,

evaluate and distribute needed timely and accurate information.

Internal record systems

The basic information system used by marketing managers is the internal record

system. It includes order to payment cycle, sales reporting system prices,

inventory level etc. By receiving the information, managers can spot important

opportunities and problems.

The Shujabad Weaving Mills is maintaining its internal records by keeping order

to payment cycle. In this system sales/marketing department keep order up-date

total order quantity, balance quantity etc. excise department. Prepared invoice

under the instruction of sales dept and goods are sent to their respective orders

by special delivery.



Every firm maintains its marketing intelligence system for the feed back from

customers and agents etc that what has been happening in the market.

Marketing intelligence system is a set of procedures and sources used by

managers to obtain their every day information about pertinent development on

the marketing environment. The production staffs of Shujabad Weaving Mills visit

the end users for gathering information about their product results and they visit

to end-user to solve their problems.

Marketing research systems

Every manager is required to conduct marketing research, formal research on

specific problems and opportunities; they conduct a market survey and product

preference test and a sales forecast.

Market demand

Shujabad Weaving Mills measures demand by adopting the following method:

Sales representative/agent collect data of total fabric demand.

Specific demands of particular count are determined and calculate the

number of users of said product is calculated.



Then total demand is calculated and Shujabad Weaving Mills plans to get

maximum share from the market demand.

Marketing Mix

Marketing mix is the marketing task that the firms are to be required its objective

in the target market. The marketing mix consists of every thing the firm can do to

influence the demand for its product.

Many possibilities can be collected into four groups of variables known as the

“4p’s”.

1- Product

2- Price

3- Place

4- Promotion

Product

Shujabad Weaving Mills Limited produces gray cloth and high quality fabric.

Their products play an important role in the building the goodwill of the SWML.

SWML exports more than 50% of its products and remaining they sell in the local

market. Main product of SWML is Gray-cloth. all the products are produce

according to the requirement of customer order.



The main products of SWML are as follow:

FABRIC PRODUCTS

They can also be distinguished under two heads:

1-Gray Fabric or Cora

2-Other Fabric (processed)

1)- Gray Fabric or Cora

20*20/60*60

30*30/76*68

40*40/100*80

12*10/60*60

22*22/60*60

24*24/68*63

2)- Other Fabric (processed)

Printed Fabric

Dyed Fabric

Bleached fabric or white

Strategies In Price Fixing

There are two types of price fixing strategies

Directly to customer



Indirectly to customer

Directly to customer

If they sell their product directly to the customer then they fix price in such a way

Fixed cost + Variable cost + Desired profit

Indirectly to customer

If company sells their products indirectly then they fix price in such a way Fixed

cost + Variable cost + Desired profit + Middle man’s commission In this case

the profit margin depends upon the quality and condition of the market. If the

market is new then the price will be new to attract the customers and compete

the existing competitors.

PRICING PROCEDURES

1-Pricing Procedure For The Local or National Market

SWML sells more then 50% of its products in the foreign market. They sell only

extra quality left from the foreign order or defected product in the local market.

Sometimes SWML sells on its products at cut-price. Because, when some extra

quantity is from the foreign order they sell at cut price because, they have

already charged their cost from the foreign customer.

2-Pricing Procedure For The International Market



Pricing procedure of SWML for export is different from the local procedure. They

keep in mind certain factors before changing the price in foreign market. When

any customer wants to purchase the products, after negotiation they fix the price.

Because, there are certain other factors are also included with fixed cost. The

important factors are quality of.

Pricing procedure for export

Shujabad Weaving Mills Limited has following procedure for exports

Inquiry

Customer inquiries are received from telex, fax and letter. They are directly sent

for approval to CEO and after approval sent to concerned department.

Costing

Costing sheets are prepared for CEO’s approval. In the absence of CEO,

department G.M Marketing approves price. If both are not available then section

Deputy Manager Marketing is allowed to quote the price.

Approval

CEO gives the approval or may give other price to be offered.

Contract review & check sheet

Section in charge takes following steps before issuing a contract:

Prepare contract review check sheet



The requirements are adequately defined and involvement’s of production

areas.

In house/out side have the capability to meet the order requirements.

After getting approval of costing and review of customer requirements,

prices are quoted to customer for confirmation. After confirmation of prices by

customer, sales contract is issued to the customer with complete detail of

construction, width/size, price, quantity, delivery, payment terms etc. and the

cloth order is sent to relevant department.

Purchase order

Purchase indent folder are received from customer pertaining to different contract

booked sectional in charge check and see any discrepancy of the contract if any

is found, then it is come to the knowledge of the customers for amendment.

Grey demand

Grey demand placed to the following department

To export sales section for new order or revision

To production planning and coordination (PPC) they are coordination

between export and processing department.

The stock management for updating stock position

Inspection Grey cloth for issuance of Grey to processing



Strike off preparation & approval

Customer sends their designs either as on art paper; as paper sketch or fabric

cutting. From these cuttings the strike off is made.

Assortment

Once customer is satisfied with strike off, the order quantity is assorted with

design.

Letter of credit

L/C is established and after receipt of L/C these are checked with regard of

ordered goods by the sectional in charge and discrepancies in L/C are noted and

the customer is informed for amendment.

Dispatch of goods

Dispatch able goods detail along with samples received from folding department.

Each section verifies quantity of goods to be dispatched, they intimate to S & D

section to dispatch goods.

Shipment

Shipment & dispatch is responsible for all documentation and shipment of goods

by air and sea.

ISO department prepared management information system report.



Customer complaints

After receiving the goods if customer found any defect, they complaints the same

to the concerned department in charge. Sometimes send the defective sample

for review.

Place / Distribution

SWML exports more then 50% of its products. They are using two types of

channels of distribution in export their products.

Direct Channel

SWML Customer

Indirect Channel

SWML Middle man (agent) Customers

As most of the products of SWML are exported, so they use the different modes

of transportation to transfer the product from SWML to the customer country.

Mostly SWML exports its products through ships. There are other modes of

transport also being use:

Trucking Companies

Airlines Companies

Shipping Companies



SWML exports its products to all over the world but the major countries are as

follow:

Turkey

U.S.A

Bangladesh

Hong Kong

Italy

Germany

Austria

Promotional Strategies

The SWML has not any promotion point of its products because the demand of

their products in the world is very high. We can easily judge them from their work.

Our export figure is varying high as compare to any individual company.

Quality policy of the company is as under

It is the policy of SWML to provide products and services that consistently meet

the expectations of our customers. Encourage total employee involvement in the

never-ending effort to improve the quality of our products and services.

All employees are responsible for the quality of their own work. All have the

authority to initiate action to prevent the occurrence of product nonconformity.

Managers at all levels in the organization are responsible for quality

improvement activities within respective areas.



Top management will provide leadership and direction of achieving quality

improvement by interpreting policy, recommending strategies, organizing

resources, and assisting managers in the development and implementations

plans.

Quality Objectives

The quality objectives of SWML are as follow:

To have a strong quality check at all stages of production thus

paying a way to have a better overall quality of the product and

reducing overall rejection.

To achieve the sales target.

To improve the delivery system and to eventually achieve 100% on

time delivery.

Following are some findings of our report:

There are no motivating factors for the employees

Companies personal policies are not good

The performance appraisal are not carried regularly

Company is facing the main problem of textile industry crises in the

country due to floods, leaf curl virus etc.

The company is unable to use its full plant capacity, which shows that

technical staff is not up to the standards



The employees are not much aware of latest available computer programs

The management is not doing anything for the purpose of satisfying and

motivating their employees and the workers, which may lead towards the

more productivity.

Changing Government policies are providing problems for the company

exports policies.

The short-term solvency and long term solvency of the company is better

and still acceptable, because there is still a margin of getting long-term

loan.

Following are some suggestions

A proper training should be given to the employees and the workers to

enhance their skills to increase their productivity and ultimately of the

company.

The management should make the market survey time to time to get more

and latest information about the market factors like the price, demand,

current consumer trends etc.

As the world has become a global village, the management should have

the latest knowledge and information’s about the world because now a

little change in any corner of the world can affect your business.



The top management should give the autonomy and the flexibility to every

manager to make decisions according to the situation at any time and in

the absence of the top managers.

All the duties and responsibilities of the employees and the workers

should be clearly defined.

The computer technology should also be used in decision making as well

as in storing and feeding the data.

The company should make it possible to deliver the goods to the buyers at

the agreed time.

The company should adopt an efficient appraisal system and give rewards

to the employees who have done well.

The management should recruit right persons for the right job.

The management should be able to assess the problems before it’s

occurring so that they are able to find the ways of their solution.

The management should hire multi-skilled workers to get economy of

scale.

The company should emphasize on its personnel department immediately

on emergency basis.

Long-term solvency is good but time interest ratio should also be

improved.

There should be decentralization in decision-making

An effective relationship and coordination between the departments must

be there.



It should be realized to be very clear about the advantages and

disadvantages of each strategy to take effective decision about its

continuity to make an effective strategic implementation.

Shujabad Weaving Mills Ltd should also introduce its brands in local

markets.

Company should give proper attention to deal with dead fabric and made

ups.

Conclusion

We got a lot of experience from Shujabad Weaving Mills Limited. During our

internship we came to know that how the different activities take place, what are

the Procedures.

The Shujabad Weaving Mills Limited is on the way of progress. It has been

earning profit. The management is professionally qualified and experienced.

The Shujabad Weaving Mills Limited should motivate their employees by

providing different incentives. Their salary package is also not attractive. The

performance of the Human Resource department is also not satisfactory.

Shujabad Weaving Mills Limited product (Fabric & cloth) is of high quality. The

demand of Shujabad Weaving Mills Limited products is increasing with the

passage of time. The company should expand its capacity as soon as possible to

satisfy the demands of their customers.

Refrences & Source Used



I used the reference of my friend Mr. Farooq Taj who work in Shujabad weaving

mills ltd as a Marketing officer.


this report is dedicated to my father who is not with me

Documents

home textile

marketing

shujabad weaving

public limited

deputy manager

shujabad family

term solvency

marketing