Case Study MTM-1a
Case Study MTM-1a
Case Study MTM-1a
History of MTM
Masood Textile mills were incorporated in 1984 with 4 spinning mills. Initially it was engaged only in spinning. In 1993 company changed its strategy by adding up most process and disposed off three spinning units. In 1995 company made its own garments units with only 35 stitching and with 75 sewing machines.
History of MTM
In 1996 company management has made the plan to use its own production of yarn for producing value added products because of the slump in international and local yarn market. For implementing this plan, company made heavy investment in 1997 for modernization and expansion of production facilities towards value added operations. For this purpose 6 dyeing machines were installed and further knitting, dyeing and finishing machinery was being imported.
History of MTM
Building was also constructed to install more stitching machines for producing value added products. In 1998, company was earning 470 million rupees per annum which was increasing day by day.
In 2009, it increases and earning raise to 6120 million rupees per annum.
In 2010, company has more than 1725 sewing machines. Today it has more than 4700 stitching machines of different brands. All credit of this success goes to visionary leadership of Mr. Shahid Nazir, the Chief Executive of the company.
MASOOD TEXTILE MILLS LIMITED
Introduction (cont)
It is vertically integrated textile unit. The Masood Textile Mills is leader in creating, developing and manufacturing of knitted apparel products.
MTM translates the conceptual ideas of our customers into reality and shape them through our technical bent. The team here strongly believes that Customer satisfaction is the essence of business today. MTM has the technology with expertise, products with knowledge and most importantly the right mindset to achieve total customer satisfaction.
Introduction (cont)
MTM is the only textile unit in the Pakistan with latest computerized bar code system, which assures quality in every operation from spinning to packing; products of each department carry bar coded stickers which bear all the details and history of the operation of that product. If any problem occurs, one can trace back the root of the problem and enables to prevent that problem to be occurred again in future. In the beginning, they were using manual recording system of inventory, raw material & salaries. Now MTM is the only company which has Direct-to-Store supply chain management system. .
MASOOD TEXTILE MILLS LIMITED
AWARDS
AWARDS
Masood Textile Mills Ltd. is certified by the WRAP Certification Board.
JCPenney Awards Masood "The best supplier of the region award 2001-2002". The ceremony was held in Singapore on 17th July 2002. Shahid Nazir (C.E.O.) received this award.
AWARDS
Certificates Distribution Ceremony for Trainee Stitch Machine Operator & Supervisor on 02/07/2003
JCPenney 30/09/2003
AWARDS
Russell Corporation 12/07/2003
Our Customers
PRODUCTS
YARN:MTM Spinning is capable of producing more than 35,000 lbs of Combed & Carded ring spun yarn from 6/s to 40/s count. Spinning is equipped with state of the art machines from Japan, UK and Switzerland.
PRODUCTS
FABRICS:One of the largest Fabric facility in Pakistan having the capability to produce all kinds of knitted fabrics in 100% cotton & blends.
PRODUCTS
GARMENTS:LOUNGE WEAR
MTM is a leading apparel company in Pakistan having expertise & machinery capable of transforming customer ideas into superior quality garments, which are taken as the most famous brands in the world.
ACTIVE WEAR SLEEP WEAR
ATHLETIC
SPORTS WEAR
UNDER WEAR
VISION STATEMENT
MISSION STATEMENT
"Our Mission is of continual improvement and sustained growth, and of a family of workers. Who are given the best compensation benefits and working conditions in the region. In this respect, MTM continues to emphasize the need to invest in and develop its most precious resource; its human capital. MTM continues to provide training courses and self-enhancement opportunities for all our workers"
To be the leading textile company by exceeding customers satisfaction and achieving market leadership and operating excellence in every segment of our company.
Weight Rating
0.12 4
Score
0.48
0.10
0.12 0.05 0.11 0.07
2
4 1 3 3
0.20
0.48 0.05 0.33 0.21
Threats
1. Attitude of the consumer changing 2. Low price offered by other competitors 3. Political instability & government regulation 4. Seasonal orders 0.11 0.09 0.08 0.08 4 3 1 2 0.44 0.27 0.08 0.16
0.07
0.21
Total
1.00
2.91
MASOOD TEXTILE MILLS LIMITED
Weight
0.10 0.11 0.09 0.08 0.07 0.06 0.06 0.09 0.07
rate
4 4 4 4 4 3 3 4 3
Score
0.40 0.44 0.36 0.32 0.28 0.18 0.18 0.36 0.21
Weakness
1. High cost production 2. Employee turnover rate (2.1% per year) 3. Product line limited
4. Small international market share 5. Longer transit time 0.07 0.05 0.04 0.06 0.05 1 2 2 1 2 0.07 0.10 0.08 0.06 0.10
Total
1.00
3.14
MASOOD TEXTILE MILLS LIMITED
MUST Apparel
Rating
2 4 3 3 4 4
Elcatex
Rating
2 2 2 2 2 2
Zara Textile
Ratin g
3 2 2 2 2 3
Rating
4 3 4 4 2 4
Score
0.48 0.27 0.40 0.36 0.20 0.44
Score
0.24 0.36 0.30 0.27 0.40 0.44
Score
0.24 0.18 0.20 0.18 0.20 0.22
Score
0.36 0.18 0.20 0.18 0.20 0.33
Financial position
Price competitiveness Research & development Advertisement
0.11
0.09 0.12 0.07
4
2 4 4
0.44
0.18 0.48 0.28
3
4 3 3
0.33
0.36 0.36 0.21
2
3 2 2
0.22
0.27 0.24 0.14
2
2 2 2
0.22
0.18 0.24 0.14
Total
1.00
3.53
3.27
2.09
2.26
MASOOD TEXTILE MILLS LIMITED
SPACE Matrix
Stage 2: The Matching Stage
IE Matrix
SWOT MATRIX
Strengths :1.Vertical integrated system 2.High quality of product 3. Aggressive R & D
4. Back track system & DTS system 5. Efficient management
Weaknesses:1. High cost production. 2. Employee turnover rate (2.1% per year) 3. Product line limitation 4. Small international market share 5. Longer transit time to destination
6. Flexibility in production
7. ISO certified 9002 8.Financial position 9.Offshore Manufacturing
Opportunities:1. Increase in apparel retail business 2. Exploring new market 3.Modernizing technology 4. Introduce its own label in domestic & international market 5. Lean manufacturing 6.Export fabric
SO-Strategy : Market development (S3, S6 , S8, O1 & O2 ) Reduction in lead time. (S1, S5, O3 & O5)
WO-Strategy:Product development (W3, O3, & O4) Market development (W4 O1 & O2) Process optimization & Cost mitigation (W1, O3 & O5)
Threats:1.Attitude of the consumer changing 2.Low price offered by other competitor 3.Political instability & government regulation 4. Seasonal orders 5. Increasing rate of inflation(13.5%)
ST-Strategy: Bringing equilibrium in our resources (S1, S2,S3, S6, S8,T1, T2 & T4)
SPACE Matrix
Stage 2: The Matching Stage
IE Matrix
Space Matrix
Internal Dimensions
Financial Strength (FS) Competitive Advantage (CA)
External Dimensions
Environmental Stability (ES) Industry Strength (IS)
Space Matrix
Financial Strength (FS)
Return on investment Leverage Liquidity Earning per share Net Income +6 +3 +5 +6 +5
FS = 25/5 = 5
ES = -11/5 = -2.2
Space Matrix
Competitive Advantage (CA) Industry Strength (IS)
Market share Product quality Customer loyalty Technological know-how Vertical integrated system -3 -1 -1 -1 -1 Growth potential Profit potential Resource utilization Ease of entry into market Repute +6 +5 +3 +1 +4
CA = - 7/5 = - 1.4
IS = 19/5 = 3.8
Space Matrix
X-axis = CA+IS = -1.4 + 3.8 = 2.4 Y-axis = FS+ES = 5 - 2.2 = 2.8
MASOOD TEXTILE MILLS LIMITED
Space Matrix
Conservative
+6 +5 +4 +3 +2 +1
Aggressive
-6 -5 -4 -3 -2 -1
-1 -2 -3 -4 -5 -6
+1
+2 +3
+4
+5
+6
Defensive
Competitive
SPACE Matrix
Stage 2: The Matching Stage
IE Matrix
Internal-External Matrix
Quadrant (I, II, IV) Company should be the in position to Grow and build Quadrant (III, V, VII) Company should be in a position to hold and maintain Quadrant (VI, VIII,IX) Company should be in a position to Harvest or Divest
MASOOD TEXTILE MILLS LIMITED
Internal-External Matrix
IFE Weighted score is (3.14)
Strong 3.0 ~ 4.0 Average 2.0~2.9 Weak 1.0~1.9
High 3.0~4.0
I IV
II V
III VI
Medium 2.0~2.9
VII
Low 1.0~1.9
VIII
IX
SPACE Matrix
Stage 2: The Matching Stage
IE Matrix
Quadrant III
Quadrant IV
Strategies
In our opinion, the following two strategies should be adopted for QSPM Strategy(01)--- Market Development Strategy(02)--- Process optimization and Cost Mitigation
Market Development AS TAS 0.30 0.33 0.36 0.21 0.24 0.18 0.36 0.21
AS 4 4 3 4 2 4 3 4
Weakness
1. High cost production 2. Employee turnover rate (2.1% per year) 3. Product line limited 4. Small international market share
5. Longer transit time
1 4 -
0.07 0.24 -
4 3 -
0.28 0.18 -
Total
1.00
2.50
2.76
AS 3 2 4 4 -
Threats
1.Attitude of the consumer changing 2. Low price offered by other competitors 0.11 0.09 3 3 0.33 0.27 2 4 0.22 0.36
0.08
0.08 0.07
3 4
0.24 0.28
4 3
0.32 0.21
Total
1.00
2.69
2.59
Grand Total
2.00
5.19
5.35
Recommendation
On the basis of QSPM, we make the decision to adopt the cost reduction strategy