Styles & TRend

Styles & TRendPRESENTED BYBUSHRA KHANKAINAAT ISMAILMEDIHA SAJJADSHAHER BANO GARDEZIMBA:2-A

INTRODUCTIONCOMPANY BACKGROUNDCASE FACTSIn 1993 textiles formed 65% of the country`s exports of 6.8 billion with knitwear clothing at $462 billion.In 1992 Pakistan produced 13.2 billion bales of cotton.In 1993, an integrated knitwear unit of about 10,000 dozen per month capacity required a capital investment of about 60 million.Vast majority of integrated units operated in Lahore city.

The size of spinning sector could be gauged by the number of spindles.Five years ago virtually all the accessories used in apparel manufacture were imported while simple items like buttons were manufactured locally.Tags attached to garments were imported from Hong Kong because of requisite quality of printing unavailable in Pakistan.Knitwear producers could buy on credit ranging from 30 days upwards.

SWOT ANALYSIS

PROBLEMSCORE PROBLEMNO STRATEGIC MANAGEMENT Theres no clarity of the Strategic Vision for the organization. . There are no clear strategies formulated in order to fulfill the dream of a fully integrated Unit through Expansion & Growth THREE STRATEGIC OPTIONSScenario 1Manufacturing & scatteringBall over on sales and harvestScenario 2Manufacturing & disseminationImpact on Sales and GrowthScenario 3Manufacturing & DistributionImpact on Sales and Growth

Alternative # 1100% Sales to US Market in Category 338 Alternative # 250% Sales to US Market and 50% Sales to Europe & Other Market sAlternative # 3 Sales to Markets Other than US Advantages:New potential Supply Channels Long term relationships New potential Supply Channels Long term relationships Steady supply ordersNo Need to attend foreign Fairs or visit buyers offices Low Quota InvestmentLower Working Capital Disadvantages:Quantitative trade restrictionsStringent/difficult to meet Quality standardsShort Lead times More StressSmaller & costly orderStringent/difficult to meet Quality standards

Lower MarginsLess Market Coverage

RECOMMENDATIONSSTRATEGY SUPPLY CHAIN STRATEGY

Local/Foreign Retail Outlets BACKWARD INTEGRATION FORWARD INTEGRATION MANAGEMENT STRATEGYEXHIBIT ANALYSISExhibit 1Current ratio, quick ratio, and days receivables and pays payable highlights some negatively debts have decreased over time. Total debt/total assets changed from 37.08% to 4.81%.Exhibit 2Export has grown from 1988 to 1993 from $1669 Million Potential Opportunity.

Exhibit 8Pakistan scores lowest in production and management dimensions relative to other competing countries.

Exhibit 9Pakistan has lowest value to volume ratio and thus it earns less foreign exchange with massive imports.

Exhibit 13This exhibit shows how increasing general trend in quota prices and suggests a great degree of volatility for category 338.