• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
46520765 38893980-pest-of-gul-ahmed
 

46520765 38893980-pest-of-gul-ahmed

on

  • 509 views

 

Statistics

Views

Total Views
509
Views on SlideShare
509
Embed Views
0

Actions

Likes
0
Downloads
5
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft Word

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    46520765 38893980-pest-of-gul-ahmed 46520765 38893980-pest-of-gul-ahmed Document Transcript

    • PEST ANALYSIS OF GUL AHMED Political The global economic slowdown of 2007-08 initially triggered by the subprime mortgage crises in the U.S, as a result was which the U.S. Dollar suffered huge depreciation against major currencies; coupled with the phenomenal hike in oil and food prices, sent shock waves around the world, throwing up enormous challenges for most economic managers. Pakistan was no exception.3 Heavy reliance on imported fuel and food commodities like wheat and sugar placed huge pressure on our balance of payment reserves as our import bill soared. As far as the garment production4 in Pakistan is concerned, the highest value-added product among the textile group, but the price we are getting for our products is less compared to other countries. According to one estimate 70 percent of these units are in the unorganized sector, producing cotton-made articles. These units do not have modern machinery and use the non-mill made cotton cloth. This may be one of the reasons that the price we fetch for our apparel exports is low compared to other countries. As apparels/garments provides the highest value added product among the textile items. Maximum focus should be towards the units producing garments. Our producers in this particular industry should try to adopt (just like in the West) the “Demand for Market Oriented Strategy” i.e., to increase their market power by producing high price fashion clothing. They should go for product differentiation through the promotion of brand names and advertising. And they should also try to increase the efficiency of distribution. With an increase in market power they can easily transfer rising cost to consumer in the form of rising prices. Regulations in your industry • National Business Environment Pakistan’s national business environment is characterized by abundance of semi-skilled and low wage labor, moderate natural resources, poor
    • infrastructure, high rates of corruption, poor governance, moderate level of university-industry collaboration and low scientific research on the factor side. The context of firm strategy & rivalry can be described as highly regulated, bureaucratic business environment, high tariffs, no substantial presence of foreign companies and static corporate culture. The textile industry has been the driving force behind the manufacturing sector growth of Pakistan. This sector accounts for nearly 60% of total exports for Pakistan, 46% of total manufacturing produce and employs 38% of the total manufacturing labor force. Textile trade is classified into two broad categories i.e textile which include yarn, fabric and madeups and clothing which represents ready-made garments. The largest growing sector within the global textiles trade has been the apparel sector – trade in this sector in 1999 accounted for 53% of the total value of global textile trade. Over the last decade, the apparel trade5 has surpassed the trade in textile products such as yarns and fabrics. In the year 2000 total trade in textiles was $157 billion and trade in clothing was $199 billion. There was a switch in trade patterns after 1985 when clothing became more significant as compared to textiles. This sector lies at the pinnacle of the textile value chain, which begins with cotton and synthetic fibers. South Asian countries have established themselves as the most important players in the textile sector. Environmental • what the government says and what market say Pakistan is one of the emerging economies of the world. It has shown great economic growth due to dynamism in its industrial, agriculture and services sectors. The services sector alone has continued to perform strongly and has averaged growth of over 8% per annum since 2000. Services sector contribution to real GDP growth Pakistan’s economic growth7 is broad-based and is shared by all the major
    • sectors of the economy. However, a major contribution towards growth has come from the services sector, which has emerged as a growth powerhouse over the past few years. The commodity producing sectors (agriculture and industry) have contributed two-fifths while the services sector contributed the remaining three-fifths of the 2006-07 real GDP growth of 7.0%. Agriculture and industry contributed 30.2%, or 2.9% percentage points, while the remaining 59.8%, or 4.2 percentage points, came from the services sector. Within the commodity producing sectors, agriculture contributed 1.1 percentage points or 15.1% to overall growth, while industry contributed 1.8 percentage points or 22.7%. The services sector has contributed the bulk of GDP growth for some time. source referenced from smeda Social • Related to your industry Pakistan’s reliance on agriculture is minimizing with the passage of time. It is encouraging to note that the contribution of wholesale and retail trade is increasing. It contributed 19.4% or 1.4 percentage points to GDP in 2006-07. This sector is highly labor-intensive and this higher growth may have contributed to the rise in employment and income levels of people attached to the sector. • A view of the services market “While dealing with a service giver, I am constantly gripped by a fear of being cheated. I have to play extra vigilant; as the fear is not just about the conscious wrong doing on the part of a service giver but also about his skill and ability to deliver the right quality stuff”. These issues are reflected below: • Lack of standardization Services are not standardized. Legislation protecting consumers is still at a very early stage and there are no strong traditions to support customers
    • seeking recompense or damages from a services deliverer. International quality certifications are systems-based requiring a lot of documentation, besides being expensive. There is a need for a simple but effective mechanism, at the level of the sectoral or professional associations, to certify the quality of services and thereby ensure adherence to a consistent set of quality standards. • Free entry and unemployment With rising unemployment, services businesses requiring a minimum level of skill, a small capital outlay and virtually no registration are an easy option for investment to earn a living. With scores of people entering the lower end of the market, competition is high and the range of pricing limited. Therefore, livelihoods are squeezed from the thin margin left after meeting all costs and overheads. Expecting such a market to be quality conscious is an illusion. • Deficiency of trained HR Apart from a few organized sub sectors, like banking, medicine and engineering, there are no credible training institutions offering courses in the skills required for the services sector. Resultantly, most of the artisans in trades like electricians, mechanics, drivers, tailors, barbers, cooks, masons, etc, are trained on the job. The level and quality of skill acquired by them is inconsistent and uneven depending on the source and environment of learning. Socio Cultural: The product made by Gul Ahmed is in sync with the socio cultural aspects of the region. The dresses usually worn by the women and men here are of that material. Gul Ahmed however is not catering to the changing social trends for example the move towards more westernized clothing like Bareeze is doing with ‘Leisure club’. This change in the social and cultural trends can
    • affect Gul Ahmed and it will have to keep re inventing itself to keep up with the times. Plus there is a change towards more acceptability of working women in the society. The firm will have to keep in mind that too because not even ladies have time to get the clothes elaborately stitched now. • Westernization Due to media proliferation and exposure to the western culture the younger generations in Pakistan is becoming more and more westernized. This change in the society has worked in favor of fashion store like Chen One and Bareeze that sell trendy western and eastern outfits for both men and women but for Ideas by Gul Ahmed, this is a territory yet to enter. • Brand Consciousness People are becoming more and more brand conscious. Reliance on foreign brands is increasing. Therefore the Pakistani brands by portraying a hip and a trendy image like the west can capture the interest of people. Technological: On the national level, Gul Ahmed is enjoying technological edge over all the others players in the industry. The technology that is in use in the industry has a lot of room to be improved. It is necessary that the industry undertakes an up gradation in the technology being used. Also, there is lack of efficient R&D and training. The textile machinery used in Pakistan is imported mainly from countries like Japan, Switzerland, Germany, China and Belgium. Gul Ahmed unlike the other mills and factories of Pakistan is equipped with far better technology which helps them to be far more efficient and maintain good quality. But, on the Global scenario the costs of inputs in Pakistan are more than any of the competing countries like India and china. Gul Ahmed has to be more efficient in production and if possible, install more technology in order to meet its aim of becoming international brand.
    • Whereas in IDEAS; they have incorporated Management Information system with incorporation of oracle based inventory management system. This helps them retain, analyze and forecast the inventory in store and demand that is in market for a particular product. Research and development To facilitate the textile industry, government has granted 6 percent Research and Development support to garment exports (both knits and woven). Research and Development support to export of dyed/printed and White, Home Textile at 3 percent and dyed/printed textile at 5 percent of the FOB. The scheme has been discontinued from June 30, 2008. As per the estimates provided by the State Bank of Pakistan, the government has doled out Rs 40 billion to textile exporters of the country
    • Whereas in IDEAS; they have incorporated Management Information system with incorporation of oracle based inventory management system. This helps them retain, analyze and forecast the inventory in store and demand that is in market for a particular product. Research and development To facilitate the textile industry, government has granted 6 percent Research and Development support to garment exports (both knits and woven). Research and Development support to export of dyed/printed and White, Home Textile at 3 percent and dyed/printed textile at 5 percent of the FOB. The scheme has been discontinued from June 30, 2008. As per the estimates provided by the State Bank of Pakistan, the government has doled out Rs 40 billion to textile exporters of the country