History of Qarshi Qarshi Industries (Pvt.) Ltd. is one of the largest natural products companies in Pakistan. It is a modern and progressive facility that manufactures and markets leading brands that have become household names. As a leading manufacturer of Natural Products Qarshi is engaged in promoting healthy living for over seven decades. It has been offering blend age!old "riental and #reek herbal preparations $ith the latest advancements in science and technology to provide safe and effective products to its customers. %rom humble humble beg beginn inning ing in &' &' Qar Qarshi shi Ind Indust ustrie ries s (Pv (Pvt.) t.) Ltd Ltd.. is no$ Pa Pakis kistan tan*s *s lar larges gestt her herbal bal pharmaceutical company. It $as conceptuali+ed ,- years ago by the venerated eastern poet Allama uhammad I/bal. Its inception $as in the shape of a clinic at 0eadon 1oad in the city of Lahore in the heart of Pun2ab $hich $as opened by 3hifa!ul!ulk 4akim uhammad 4assan Qarshi 4e $as a practitioner of herbal medicine and health supplements. 5he clinic $as started $ith a vie$ to provide pure and effective herbal medicines to the general populace. In &' the youngest son of 3hifa!ul!ulk r.I/bal Ahmed Qarshi after completing .3.6 in 6hemical 7ngineering laid the foundations of Qarshi 8a$akhana that has no$ evolved into Qarshi Industries a modern and successful company that out$eighs by far the e9pectations of its original founder. Qarshi Industries is highly rated company in i ts category in Pakistan. It has consolidated its image as a /uality!conscious company and has over the year demonstrated its firm commitment to /uality and strict adherence to international standards. Qarshi takes pride in maintaining a high /uality in its products and superior skills and ac/uiring the latest in advanced technology. Appro9imate annual sales : ;38<-======= Percentage of e9ports : &=> ;3A 7urope and iddle 7ast
Company Profile Nishat ills Limited is the flagship company of Nishat #roup. It $as established in &'-&. It is one of the most modern largest vertically integrated te9tile company in Pakistan. Nishat ills Limited has &'&?= spindles -- 5oyota air 2et looms. 5he 6ompany also has the most modern te9tile dyeing and processing units ? stitching units for home te9itle one stitching unit for garments and Po$er #eneration facilities $ith a capacity of ' @. 5he 6ompanys total e9port for the year ?=&& $as 1s. B.=&- billion (;3< C& million). 8ue to the application of prudent management policies consolidation of operations a strong balance sheet and an effective marketing strategy the gro$th trend is e9pected to continue in the years to come. 5he 6ompany*s production facilities comprise of spinning $eaving processing stitching and po$er generatio Nishat ills D the flagship company of the Nishat #roup D reported a profit of 1s?. billion in the Euly to 8ecember period of the fiscal year ?=&?!&B up -=.-> from 1s&.' billion in the corresponding half of fiscal ?=&? on back of stronger margins and higher e9ports $here rupee depreciation played its part. "n a consolidated basis the company managed to double its profits to 1sC.'& billion in the period. F5he result $as above analyst e9pectations due to higher than estimated revenue gro$thG reported Heeshan Af+al analyst at 5opline 3ecurities. According to a notice sent to the arachi 3tock 79change the te9tile companys revenue clocked in at 1s?.B? billion in the period up ??> compared to 1s?&.? billion in the corresponding half of previous fiscal attributable to stable cotton prices and '> depreciation in rupees value as => of its sales are in the e9port market. Increased demand of yarn from 6hina had been the ma2or catalyst in driving te9tile e9ports in fiscal ?=&B. 5e9tile e9ports in the first si9 months of current financial year touched <.C billion depicting a gro$th of .> year!on!year. International cotton prices averaged 1s-?- per maund in the period $hereas local prices averaged 1s=== per maund. "ne maund is e/ual to B,.B?- kilogramm
Trade reports: According to a trade report the profit of the NTM after tax deduction in the nine months period ended March 31, 2010 has raised to Rs 1,810.!" mi##ion as compared to Rs 1,100."21 mi##ion in the re#ated period ended March 31, 200$, sho%ing an increase of ".&" '. (t sho%s the good reputation of the compan) *ut sti## has pro*#ems of high prices %hich need to *e so#+ed %ot ana#)sis: The -T ana#)ses are of great importance and he#ps in decision/maing for a## sorts of situations in *usiness and organiations. The s%ot ana#)sis for nishat mi##s #imited is as fo##o%s. ot#er et a#...200&4 5-T is a practice %hich he#ps to ana#)se the interna# and externa# en+ironments of an organisation through the c#assification and 6udgement of its trengths, -eanesses, pportunities,
and Threats. -T ana#)sis sho%s an image of the resu#ts of an interna# and externa# audit %hich dra%s attention, from a strategic point of +ie%, to the organisations critica# strengths, %eanesses, the opportunities and threats facing the organisation.5 trengths: 14 ( $001/2000: Nishat texti#e has the certification of ( $001/2000 %hich means its 7ua#it) standards are its ma6or strengths and hence it a#so fu#fi#s the re7uirement of internationa# standard and has a great importance in the industr) internationa##) as %e##. 24 T9 100: Nishat a#so has the certification of otex100 %ith itse#f %hich insures that it doesnt use an) harmfu# chemica#s. 34 ;omputeried machiner): This texti#e giant is using the #atest techno#og) for the production of the high#) 7ua#it) products %hich a#so enhances the production capacit) of emp#o)ees. "4 i##ed management: The high#) si##ed management from a## o+er the countr) has *een hired *) Nishat and especia##) the foreign graduate peop#e in their management contri*uting a #ot in the success of the NTM. &4 A. -eanesses: 14 ?igh production cost: The resources are not *eing use proper#) and due to the economic crisis the rates are going up rapid#) and hence cost of production is increasing as %e##. 24 @ureaucratic organisation:
Another %eaness is the *ureaucratic en+ironment %ithin the organisation. The upper management taes a## decision ignoring the emp#o)ees suggestions. 34 (nternationa# maret: NTM has %ee internationa# maret *ecause of china that is +er) %e## no%n in the cost reduction and creating a *ig pro*#em in the industr) for the NTM internationa##) and the maret share price has gone do%n as %e##. "4 mp#o)ee *enefits and re%ards: Nishat is not pro+iding an) ind of *enefits or re%ards e+en the medica# a##o%ance and transport faci#ities are not gi+en to their emp#o)ees and this put the producti+it) do%n an d therefore there is the #ac of moti+ation in the NTM. pportunities: 14 =roduct expansion: The +er) important opportunit) for the nishat mi## is that it shou#d expand its products in the form of nit%ear. As NTM has p#ants, good maret position and strong financia# *ac so it shou#d a+ai# this opportunit) *) dea#ing in nit%ear. 24 o% cost production: The NTM shou#d use the resources in a good %a) so that the production can *e reduced to a great extent and can maximum the profit ration. 34 (nternationa# maret: NTM shou#d tae the *enefits of g#o*a# recession and has a chance to increase its maret share price internationa##). Threats: 14 =o#itica# insta*i#it): This is the threat %hich cannot *e ignored due to the current circumstances of =aistan and the export of the products ma) affect in account of this. 24: Bo+ernment po#icies: As the po#itica# insta*i#it) is in =aistan and e+er) ne% go+ernment imposes its o%n ru#es and regu#ations and especia##) the sudden increment i n the taxes is not afforda*#e for the NTM. 34 @u)er needs changing: The NTM has a great threat from internationa# maret *ecause of its satisfactor) design and competitors pro+iding the #atest ones %hich can put the NTM reputation do%n. "4 B#o*a# insta*i#it):
The g#o*a# insta*i#it) is sti## in operation for this industr). An) unusua# incident can happen as $C11 %as happened so sti## that ind of threats are a*#e to distur* the compan) performance.
INTRODUCTION TO SHAN FOODS
ORGANIZATIONAL HISTORY
Shan Foods came into existence in 1981 when it began operations from a single room. Shan Masala as it was back then, launched full range of spices to cater to local public, due to its popularity. Shan started exporting after a few years due to increased international popularity. ut after sometime, the need to reposition the brand was felt. !t needed to be repositioned as a food brand rather than a spice brand. "e#imaging the organi$ation became necessary for re#positioning of the brand% it was a &ob well done and led to continued success of Shan on national and international fronts. 'ow, Shan Foods is well known as a brand of easy to cook mixes for (akistani food. )he name of Shan Foods has become synonymous with highest *uality and ex*uisite taste. !t continues to carry on, the tradition of authentic cuisine to farthest parts of the world. )here are six broad categories of +arieties Shan deals in including recipe mixes, plain spices, dessert mixes, basmati rice, pickles and salts. )oday, Shan Foods has presence in - countries. )he brand is exported to /, S0, and Middle ast and now to Far ast regions as well.
COMPANY MISSION AND VISION
Shan Foods’ mission explains its success, “ To continuously develop and produce quality products that meet the customers and markets demands, compatible with applicable regulatory requirements. To be a consumer oriented company with keen insigne of food products ensuring quality panty consistency and authentic taste to operate with state of the art technology to obtain optimum results and retain highest quality standard thrived ecient and motivation human resource
and inculcate in them a sense of participation and proved for personal goals and development.” (Shan Foods, 2008)
Shan Food’s vision is “to be a dominant global player in food products and socially responsible company that attains its quality standards so that Shan stands for tradition, trust and good taste.” A fe% )ears #ater it started exporting to urope, Dnited ingdom, Dnited tates and the Midd#e ast. -ithin a decade, han %as exporting to 2& countries
Shan Food exports — at $3!" #illion in ul%&Fe#ruar% F'! (8F'!) — are *pc hi+her than those in 8F'!3 SWOT ANALYSIS SHAN FOODS
Strengths : •
Shan ood has a ver% stron+ herita+e and le+ac% #ehind it -hich has +iven it a stron+ +ood-ill in households
•
Shan oods en.o%s an approximatel% "0/ maret share in the recipes mixes cate+or%
•
Shan oods is a leadin+ exporter o ood items rom 1aistan providin+ it an opportunit% to tap the lar+e +lo#al maret -hich helps it to expand at a rapid pace
•
Shan has a -ide ran+e o products and S’s availa#le consolidatin+ its presence in various niches and eepin+ its customers lo%al to the #rand
Weaknesses : •
Shan is not present in ams and marmalades, etchups cate+ories lie 4ational oods there#% loosin+ an opportunit% maret an% lo%al Shan
customers purchase 4ational products in these cate+ories -hich is causin+ loss o potential sales •
Shan has a lo- maret share outside arachi in the 1un.a# maret -here 4ational en.o%s maret leadership 5his is due to -ea distri#ution o Shan products in 1un.a# maret -hich is causin+ loss o potential sales
Opprt!n"t"es :
•
Shan can verticall% inte+rate to produce its o-n ra- materials -hich -ill not onl% reduce costs #ut -ill also provide it more control over the 6ualit% o input
•
Shan currentl% has a ver% lo- advertisin+ spend in the F7 industr% 9t can deplo% #rand
activations
and
other
innovative campai+ns
to s-itch
customers rom the loose: un#randed se+ment to Shan products •
Shan can also hori;ontall% expand its scope lie national oods and enter the other related ood cate+ories -here it can tap its lo%al customers -ith minimal extra e
Threats: •
5he #i++est threat to Shan is the hi+h in=ation in 1aistan coupled #% a +lo#al recession -hich is puttin+ pressure on the pro>ts and sales
•
5he prevalence o countereit products is also threat to Shan causin+ loss in +ood-ill and potential sales
•
5he emer+ence o ne-er #rand -ith deep pocets can also dama+e Shan’s maret share due to heav% advertisement -hile eepin+ the product 6ualit% close to that o Shan
