A critical Analysis of the strategic Measures Employed of

Nishat Linen

Course Name:
Management Fundamentals and Practices
Submitted to:
Dr. Fahad Javaid
Submitted by:
Malik Abdul Salam
Registration No.:
FA22-RBA-002

Department of Management Sciences

COMSATS University Islamabad, Lahore Campus.
Table of Contents
Chapter 1.....................................................................................................................................................5
1.0 Introduction...........................................................................................................................................5
1.1 Background of the Study....................................................................................................................6
1.2 Background of Host Organization......................................................................................................6
1.2.1 History of Nishat Linen...................................................................................................................6
1.3Introduction of Nishat Linen...............................................................................................................7
SWOT Analysis.....................................................................................................................................7
STRENGTHS..........................................................................................................................................7
WEAKNESSES.......................................................................................................................................8
OPPORTUNITIES...................................................................................................................................8
THREATS..............................................................................................................................................8
List of major competitors.....................................................................................................................8
Sapphire...............................................................................................................................................8
Gul Ahmad...........................................................................................................................................9
Al-Karam Studio...................................................................................................................................9
Chen-One Pakistan...............................................................................................................................9
1.3.1 Mission Statement of Nishat Linen.............................................................................................9
1.3.2 Vision Statement of Nishat Linen................................................................................................9
1.3.3 Goals and objectives of Nishat Linen.........................................................................................9
1.4 Awards and achievements of Nishat Linen......................................................................................10
1.5 Structure of Nishat Linen.............................................................................................................10
Human Resource Department...........................................................................................................11
Marketing Department......................................................................................................................11
Supply Chain Department..................................................................................................................12
Inglot Cosmetics.................................................................................................................................13
1.6 Product line of Nishat Linen.........................................................................................................14
Ready to wear....................................................................................................................................15
1.7 Problem Statement..........................................................................................................................15
1.8 Objectives of your study..................................................................................................................15
1.9 Significance of study........................................................................................................................15
Chapter 2...................................................................................................................................................16
Literature Review...................................................................................................................................16
 2.1 1st Variable.......................................................................................................................................16
Corporate strategies..............................................................................................................................16
2.2 2nd Variable......................................................................................................................................17
Business level strategies....................................................................................................................17
The business strategy construct........................................................................................................18
Classification of business strategy.....................................................................................................18
Successful business strategy..............................................................................................................18
2.3 3rd Variable.....................................................................................................................................19
Functional strategies..............................................................................................................................19
Marketing Strategies..........................................................................................................................19
Place / Channel of Distribution Strategies.........................................................................................19
Promotion Strategies.........................................................................................................................19
Financial Strategies............................................................................................................................19
Capital Structure Strategy..................................................................................................................19
Dividend Strategy...............................................................................................................................20
Human Resource Strategies...............................................................................................................20
Objectives of Human Resource Management....................................................................................20
Organization Structure and HRM Strategies......................................................................................21
Strategic Management and Performance Appraisal..........................................................................21
Strategic Management and Performance Appraisal Team Training...................................................22
Strategic Management and Performance Appraisal Diversity Training.............................................22
2.4 4th Variable.....................................................................................................................................22
Competitive strategy.........................................................................................................................22
Chapter 3...................................................................................................................................................23
3.1 Framework of study.........................................................................................................................23
Chapter 4...................................................................................................................................................24
Research Methodology..........................................................................................................................24
4.1 Questionnaires.................................................................................................................................24
4.2 Study Design....................................................................................................................................24
Chapter 5...................................................................................................................................................25
5.1 Discussion........................................................................................................................................25
5.2 Discussion on obj 1..........................................................................................................................25
5.3 Discussion on obj 2..........................................................................................................................25
 5.4 Discussion on obj 3..........................................................................................................................25
5.5 Recommendations...........................................................................................................................25
5.6 Conclusion.......................................................................................................................................25
Chapter 6...................................................................................................................................................26
References.............................................................................................................................................26
 Chapter 1

1.0 Introduction
A critical analysis of the strategic measures employed is very important because it can help guide
a company’s management in allocating its resources effectively. A strategic plan can make or
break a company.
A critical analysis of the company’s strategy and its objectives must be conducted in order to
ensure that the company’s strategy is focused on achieving its desired targets. The analysis
should be conducted by an independent third party such as a business coach.
New business expansion and relocation are often factors that require strategic planning. The
strategy should have a solid foundation in terms of measurable objectives and appropriate
measures to measure progress.
In addition, there should be periodic reviews of the strategic plan to evaluate the achievements of
the plan and to assess if it needs to be adjusted to suit changing conditions.
This analysis should involve an analysis of the performance of the company in the last few years
to assess the improvements that the company has made in the last few years to ensure that the
plan is applicable to the current and future business situations.
The study of the company’s performance against its strategic measure should be conducted
regularly so that changes in the strategic measure can be analyzed. Strategic plans and objectives
should also be reviewed every year.
A critical analysis of the strategic measure used by the firm’s internal processes should also be
done regularly. Such analyses will help determine the efficiency of internal processes and its
potential for improvement.
The study of the firm’s performance against its objectives should be done periodically as well.
The review should help identify areas where progress can be made and the potential for further
improvement can be identified.
An effective strategic plan will show a firm’s capacity to achieve its objectives and operational
effectiveness. It will also help determine whether the objectives are within the capacity of the
firm.
A critical analysis of the strategic measures employed by local companies can help create
opportunities that could lead to greater growth. It can help identify areas of improvement, areas
where the firm has room for improvement, and areas where the firm is performing well.
A good strategic plan can help local businesses grow. This can be achieved by establishing goals
that are related to the target of the firm.
This should include metrics to help local businesses to gauge their performance against these
goals. There should also be metrics to identify where additional resources can be deployed to
improve the business.
Such analysis can help guide a company in developing a strategy that will help it meet its
objectives and prevent it from underachieving. These analyses will help it focus on the key
business functions and steps needed to support the objectives.

1.1 Background of the Study

.

1.2 Background of Host Organization

Nishat group of companies is a Pakistani multi-national company which operates in distinct areas
of the business world. The is based in Lahore, Pakistan. The company was founded by Mian
Muhammad Mansha Yahya, a business tycoon, in 1951. Mian Muhammad Mansha is currently
the chairman of the company.
Many of the Nishat group’s subsidiary companies are listed on the stock exchange of Pakistan
which includes the following
 Nishat Chunian Limited
 MCB Bank Limited
 DG Khan Cement Company Limited
 Nishat Power Limited
 Pakgen Power Limited
 There are also many companies of this group that are not listed on the stock exchange
that are as follows
There are also many companies of this group that are not listed on the stock exchange that are as
follows
 Nishat Linen
 Nishat Dairy Limited
 Nishat Hospitality
 Nishat Papers Products Company
 Nishat Hotel and Properties

1.2.1 History of Nishat Linen

Nishat Linen is a subsidiary company of the Nishat group and the daughter company of Nishat
Mill. It is a vertically integrated company. It deals in retail clothing and fashion accessories.
This company sells ready-to-wear and unstitched clothes. Nishat linen has given a whole new
dimension and outlook to the textile industry. The positive image it has created in the minds of
its customers is unbeatable which cannot be ruined by big competitors in the textile industry.
Nishat Linen was founded in 1989 by Naaz Mansha, the wife of Mian Muhammad Mansha. It is
one of the largest retailers in the textile industry of Pakistan. The head quarter of Nishat Linen is
in Lahore.
Naaz Mansha is also running Swarovski chains and pendants in Pakistan. This company opened
its first retail store in 1994.

1.3Introduction of Nishat Linen

Nishat Mills Limited stands as one of the most well equipped, modern and the largest vertically
integrated textiles companies in Pakistan. Due to application of vigilant and tactical
management, effective policies, upkeep of discipline in operations and an effective marketing
strategy the growth trend is expected to continue for years to come. The company’s production
facilities include spinning, weaving, processing and power generation.
NL brings you colors of east spiced up with style and elegance; transforming fashion and
incorporating cultural values into the designs and ideas. We are responsible for putting forth
clothing that represents your taste in dressing up. The beauty is in the colors and the cuts that are
modern yet simple and supremely eye-catching. We care for our customer needs and so we keep
the quality of our products high. May it be women or children; we have something that can click
to everyone’s hearts and minds.
We deal in stitched and un-stitched clothing line, so you may choose what suits your refine grace
the best. Take your pick from our wide ranges and ever- changing new designs appearing
seasonally.
The sophistication and panache of our dresses is simply breath taking. You inspire us and so we
make design that brings the best out of you. For us, it is all about your satisfaction. Form bold
colors to cool ones, all are turned to impressing beauty for you to wear and feel elated. We are
the trend setters of the market and our wears are designed to bring about the flamboyance in your
attire.
Basic patterns rising to the epitome of decency and embellishment, done with our zing touch is
what makes NL an exceptionally wonderful brand to have you adorned with. A wide range to
choose and adopt the style of your own and get yourself pleased by the fantasy beauty that you
deserve, this all is what NL brings you to your fashion box. Uplifted personality and mystifying
beauty is what we aim for. Every woman wants to look good and when you are looking for the
brand that does that for you, NL comes on the top.

SWOT Analysis

STRENGTHS
1. One of the first few brands to release bed linen in Pakistan.
2. Strong product diversification.
3. Outlets in almost every city of Punjab and three shops in Karachi which is also the
business enterprise capital.
4. Catering all market sections except children.
5. Strong product development & most significantly according to all the times of year.
 6. Affiliation with a professional designer Mahin Khan.
7. Organized details of customer data source.
8. Valuable services to all its dedicated and first-time customers by offering discount cards
and membership credit cards.
9. Limited designs for both fabric and linen can be purchased on the market for every
season that creates differentiation with their product.

WEAKNESSES
1. Nishat linen is not providing the middle and the lower income group that can be seen by
looking at the price selection of their products:
2. Nishat linen will not perform exhibitions therefore customers have little knowledge about
their products with respect to their challengers.
3. Nishat linen is not able to grow its market in Karachi scheduled to high logistics cost
since their mill is in Faisalabad Punjab.
4. All the promotional strategies are centered on materials as it is their superstar product.
Bed linen gets little promotional marketing campaign.

OPPORTUNITIES
1. Nishat linen can turn to get affiliated with more varied designers who are into accessories
as well.
2. Publish their own catalogues for bed linens and fabric and put them at different booklet
stores so that customers have quick access with their designs.
3. Nishat can enter western clothing line which will provide them with an advantage over
their opponents.
4. Their Lahore device is developing denim textile for Levi's which is of superior quality.
This gives an opportunity to Nishat to establish their own denim brand on the market.
5. They should turn to open an electric outlet in an area like North Nazimabad where in fact
the market has a lot of potential and people have the purchasing vitality as well.

THREATS
1. Strong promotional promotions of competitors producing fabrics through exhibitions.
2. Fabric designs of their opponents are available at other shops as well while their fabrics
can be found at their outlet stores only.
3. Most of these bed linens is exported therefore the local market tend to suffer while their
competition like ideas and ChenOne are usually more focused on the neighborhood
market attaining competitive gain.

List of major competitors

Following are the competitors of Nishat Linen

Sapphire
It is also one of the most famous textile brands in Pakistan and also known as high-street
clothing retailer. It also deals in the stitched and un-stitched garments. They are famous for
combining 100% pure fabric with unprecedented design visual to create designer wear at a
moderate price. They are also exporting their products in about 30 countries. Sapphire textile
mills was incorporated as a public listed company in the year 1969.

Gul Ahmad
Gul Ahmad Textile Mills is a Pakistani textile company that deals in the manufacturing and
selling of the clothes. This company has its retail outlets under the title of ‘Ideas by Gul Ahmad’.
They are also in the market for men and women in apparel market in addition to the home textile.
They also provide embroidery, monogramming and tailor-made services. Gul Ahmad was
incorporated as private limited company in 1953. In 1970 it as listed on Karachi stock exchange.

Al-Karam Studio
Al-Karam Studio aims to provide innovative textile solutions around the globe. Al-Karam is a
commonly recognized name with regards to fashion fabrics specializing in a huge scope of
occasional, yard, cotton, chiffon, printed and ready-to-wear textures. It’s a complete creative
concept consisting of kids wear, home textiles, home wear needs to fashion fabrics and
apparels .Al-Karam Textile Mills Pvt. Ltd was established in 1986 as a large vertically integrated
composite textile setup in Pakistan.

Chen-One Pakistan
It is one of Pakistan’s prominent textile groups and one of the largest exporters of home textile
products from Pakistan. Chenab’s processing unit is considered one of the best in Pakistan. Its
main products include Home Textile, Garments, Footwear and Furniture. Its textile products are
not only sold on local level, but they also export their textile products to other companies

1.3.1 Mission Statement of Nishat Linen

“Mission statement of this particular company is to provide the quality products to all its
valuable customers and depending upon its high quality products to discover new markets and to
expand sales of the company through good governance and energetic management. The basic
purpose is to achieve lower prices of quality products so that company’s growth and prosperity
can be enhanced.”

1.3.2 Vision Statement of Nishat Linen

“The vision statement describes that company wants to become the leader in the specific industry
by making over itself into a processed cloth, modern and dynamic yarn and finished product
manufacturing company with latest technology, highly professionals and fully equipped to play a
meaningful role on sustain able basis in the economy of Pakistan.”

1.3.3 Goals and objectives of Nishat Linen

The objectives of Nishat Linen are to strive for excellence in the textile sector and remain at top
of the line in the industry while generating value for its stakeholders through integrity and
commitment. The organization aims to be exclusive and reflect he status of success and power.
Nishat Linen believes that all their products are to fulfill customer’s demands. Nishat Linen also
aims to uplift the personality and mystifying beauty of the wearer.
 The other goal of the company is to transform themselves into a modern organization that is all
in all equipped to play meaningful role on the continuous basis in Pakistan’s economy.

1.4 Awards and achievements of Nishat Linen

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Export Performance
Trophy
 ISO-9001 certification
 IKO-TEX 100 certification
 SA-8000 certification
 Citypad certification

1.5 Structure of Nishat Linen

Total number of employees
 Permanent employees: 600
 Outlet staff: 1000-1100
 Tailors or piece raters: 500-600
 Daily wagers: 300

Assistant Assistant
Cordinator Tailors
Production Manager Manager
Senior Officer Officer Officer
Helper
Shop Floor Cash Counter Sales
Retail/Sales Assistant Executive
Helpers
Manager Manager Executive
General Deputy Assistant Assistant
HR Manager
Manager Manager Manager
Officer Officer
Graphic Content Social Media
Creative PR Executive Designer Writer Handler
Marketing
Senior Media Senior Media
Execution Manager Assistant Executive Executive
O
Design General Deputy Assistant Senior
CE Manager Designer Tailors
Studio Manager Manager Manager Designer
Senior
Deputy
Supply Chain
Manager
Assistant Officers
Manager
Supply Chain Head of Dept Warehouse Head Officers Workers

Logistics Head Officers Workers

Deputy
Costing Team
Manager
Financial
Accounts CFO Controller
Office Boy Senior
Assistant
Assistant
Accounts Senior Deputy Manager
Manager
Team Manager
Senior
Officers
Officers
The following are the departments in Nishat Linen.
 Human Resource Department
 Marketing Department
 Supply chain department
 Production Department
 Fashion Department
 Textile department
 Swarovski
 Accounts Department

Human Resource Department

This is a very key department of any reputable organization. This department plays an important
role in the job identification, on-job job task, duties, and responsibilities. They collect, evaluate,
and organize information about jobs task and candidate responsibilities systematically.
The tasks that are performed by the HR department are as follows:
 The HR department of Nishat Linen decides the salaries and wages of their employees
and workers.
 Check and balance of the staff matters like the hiring of the managerial posts through
website and then shortlist them for the interviews.
 The firing matters of the employees are also overviewed by this department.
 Responsible to check the validness of the documents of the candidates.
 They conduct interviews, questionnaires, and observation for job analysis information for
the purpose of hiring.
 Advertisement of job vacancy is also one of the responsibilities of HR department.
 They also keep record of employee’s check-in and out timings and holidays.
 This department issues the entry cards to employees and visitors and keeps their working
records. This department also keeps the records of internees of each department and
maintains new training plans for new internees they try to keep their trainees and
employees satisfied with their policies.

Marketing Department
The marketing Department of Nishat Linen stretch out to the potential customers, investors, and
the community, while creating a comprehensive image that represents the good image of the
company. The marketing department is further divided into 2 teams
 Creative
The creative team is responsible for shoot of the articles and influencer marketing. They
supervise all the shoots of new articles, short list them and pick out the most suitable article for
the advertisement according to the demand of the art works by the execution team.
They manage all kind of advertisement like above the line, bellow the line and through the line
marketing.
 Execution
And then comes the execution team. This team is responsible for keeping everything up to mark
from the data collected by the customers to shop to hoardings. They are also responsible for
quick implementation of any changes in the policy. They also overlook the sales volume of
articles of different articles; for example, which is the hot selling and send the leftover items to
factory outlets.

Supply Chain Department

Supply chain department of Nishat Linen manages the inventory at every step. They are
responsible for identifying any loophole in any step of the production of the goods and
underlining them to their concerned department for correction along with the possible solutions.
There are around 100 shops that are handled by them, in which they deal with inventories of
different products of the company.
The main task of supply chain department is forecasting, which is based on sales of fabric &
prices of articles of the previous year.
They do different analysis for the forecasting purposes like.
 Sales and stock analysis
 Low selling article analysis
 High selling article analysis
 Designer vise analysis
 Inventory analysis
With the help of the above analysis, they provide all the relevant data to retail and production
department for target setting. The follow up of plans are taken by the supply chain. The supply
chain also oversees the supply of the stocks to the shops based on their sales history.
 Country
Head

Head of
Merchandizing

Head of
Training

Head of
Visual

Retail
team

Area Retail
Manager Manager

Store
Manager

Floor Store
Store Staff
Manager Manager

Inglot Cosmetics
Inglot a Polish cosmetics company was established in 1983. It’s headquartered is in south-
eastern Poland. This company basically manufactures make-up products for women. It is
considered among the most successful makeup companies in the world which sells its products
globally in over 790 boutique stores located in about 127 countries.
 Inglot is also in contract with Nishat Linen which is the master franchise of Inglot.
 Their products come to Pakistan directly from Poland and Nishat Linen clear all the bills
in Dirham.
 They selection of racks is also decided by the Inglot itself.
 The stock of 3 months is imported.
 Inglot department is responsible for overall branding in Pakistan; marketing, social
media, and stock movement (shop to shop)
 Brand Head

Marketing
Executive

Supply Chain
Officers
Head

Warehouse/
Area
Manager Invetory
Manager

Shop Makeup
Cashier
Manager Artist

Beauty
Assistant
Advisor

1.6 Product line of Nishat Linen

Nishat's products is highly diversified where it offers bed linens to kitchen coordinates,
upholstery to garments providing it significant positioning and penetration in the market to cater
to the customers who want a one-stop shop experience.
1. Nishat’s complete product line is as practices:
2. Nishat’s - Clothing Lines for women
3. Nishat’s - Clothing Collection for men
4. Bed & Kitchen Linen and Accessories
5. Bed sheets
6. Quilts
7. Bed spreads (regular/ bridal sets)
8. Kitchen (table linen, mats, stand runners, bread containers, aprons)
 9. Cushions
10. Fillings
11. Jai Namaz
12. Fashion Accessories
13. Laces
14. Bangles
15. Shawls & Stoles
16. Handbags
17. Clutches

Ready to wear
Ready to wear product items comes with different prints, styles and high quality fabric for
different age groups .The ready-to-wear racks has update designs for teens, millennial,
Generation X & Baby boomers .The diversity of stitching styles and prints attracts working
women , students, housewives & old citizens equally. Mostly older citizens prefer to buy
unstitches clothes they prefer easy to carry customized clothes on trending styles. Some
collections target culture-loving people through luxury collection like Dastoor, Qareena etc.
While trend loving segment can find modern and latest designs of fusions tops or geometric
patterns print on rack.
Categories of ready-to-wear items are
1-pc products items:
1-pc product items that include stitched fusion tops,shirts,dupattas or bottoms.The market
segments of fusion tops comprises of teens& Millennials who prefer lively colors and modren
designs and cuts .While shirts are sophisticated and decent products items that are heart of almost
every generation except Baby Boomers who likes to wear 3-pc dresses with a uniform
design.The ready to wear bottoms of Nishat Linen have following categories
 Trousers
 Shalwars
 Pants
 Luxury collection of pairs of parts


Trousers,shalwar &pants are both for casuals and formal wear These are decent ,elegant and
have wide variety of colors and designs.The luxury collection has gharara,clouts pant trousers
with motives ,embroidered and dyed trousers.Nishat Linen dupatta also provide the consumers
with best quality and unique designs but there is not much variety available.one can find only
one rack with Limited option
2-PC Products items:
2-pc products items are usually a combinations of shirts and bottom or shirts and dupatta.The
decency of 2-pc items equally appeals the consumers.The luxury collection of 2-pc items has
embroidered items with formal stitching styles.some products items have light designs and can
be used in daily routine while other have heavy embroidery work and clothes cut that is best for
party-wear some of the items are designed culturally while others might have trendy and modern
prints for office-wear.

3-pc Products items:

3-pc products items comprise of shirt,bottoms and dupatta like other products items,3-pc items
also have a vast variety of colors, designs ,print and styles.All generations specially baby
Boomers prefer 3-pc products items because of their uniformity and completeness.
 Customers can exchange articles from NL outlets or E-store within 14 days from the date of
order placement.products must be in its original conditions.cash refuint is compensated by giving
coupons

1.7 Problem Statement

A critical Analysis of the Strategic Measures Employed of Nishat Linen company

1.8 Objectives of your study

 Evaluate the Corporate strategies of Nishat Linen
 What are the Business strategies of Nishat Linen
 Describe the effects of Functional strategies on Nishat Linen
 How Competitive strategies help to compete with competitors of Nishat Linen

1.9 Significance of study

Industry analysis is a market assessment tool used by businesses and analysts to understand the
competitive dynamics of an industry. It helps them get a sense of what is happening in an
industry, e.g., demand-supply statistics, degree of competition within the industry, state of
competition of the industry with other emerging industries, future prospects of the industry
taking into account technological changes, credit system within the industry, and the influence of
external factors on the industry.
Industry analysis for an entrepreneur or a company is a method that helps to understand a
company’s position relative to other participants in the industry. It helps them to identify both the
opportunities and threats coming their way and gives them a strong idea of the present and future
scenario of the industry. The key to surviving in this ever-changing business environment is to
understand the differences between yourself and your competitors in the industry and use it to
your full advantage.s.

Chapter 2
Literature Review

2.1 1st Variable

Corporate strategies
1. Conventional analyses of corporate strategy seek to account for these alternatives within
the parameters of the discourse. Thus they become cultural lags’, ’irrational hangovers’
which will gradually but inexorably, be undermined by the spread of rational
management techniques .Opposition or alternative perspectives are either negated by
denying them legitimacy or incorporated by considering deviance as
 remediable .Genealogical analysis points to the need to examine these developments not
as the logical outcome of an inevitable and rationalizing process but as the concrete
accomplishment of actors in specific contexts which have as their consequence the
negation of other perspectives. The triumph of corporate strategy cannot be assumed to
be a natural outcome of an obviously superior set of techniques. Rather we need to
examine in specific organizational contexts how it becomes dominant. How is it, for
example, that banks have moved from a traditional view of management and markets
toward a strategic approach to their future? How is it that corporate strategy is now seen
as relevant to the health service and other public services? This is not the outcome of
some neutral unfolding of the logic of history’ but the ’skilled accomplishment’ of
discursive practices by particular subjects. If theorists of corporate strategy reproduce the
naturalness’ of their object of study, they fail to see real struggles that are continuing to
take place over the basis on which organizations should develop. Genealogical analysis
tries to break that ’naturalness’ and open up again the subterranean irrationality which the
discourse has tried to overcome .In summary, then, we would argue that the genealogical
analysis of corporate strategy generates the following issues for empirical research
 The analysis of the conditions through which the discourse of strategy became possible,
focusing particularly on changes in ownership and markets in the post-war years.
 The analysis of its reproduction within academic, organizational and inter organizational
settings by the application of knowledge and technologies of power to social relations. In
particular, the focus here is on the development of expert knowledge which are drawn upon
in the exercise of power by particular groups who seek to define the problems and solutions
for organizations.-
 The analysis of the bases of resistance to the reproduction of the discourse, its knowledge and
its technologies of power. How is it that alternative ways of seeing organizations are negated,
undermined and destroyed by corporate strategy discourse? While making no claim to
provide a comprehensive analysis of corporate strategy, we have problematized the concept
in a way which has not yet occurred in traditional business school approaches to this field of
study. In the next section, we take this further by spelling out some of the ways in which
strategic discourse ’works’ now that it is increasingly dominant in the current social context.
2. Nishat stands up to its social responsibilities both in terms of environment and Welfare.
The company covers housing and medical expenses for its employees and also provides
schooling for their children. A high school has been opened for the children of the
employees and general public of the area. A hospital has been constructed in the vicinity
of the plant. The company also provides recreational and sports facilities for the resident
employees at the production premises. NCL has also established a school and hospital
under the Mian Mohammad Yahya Trust, at a cost of around US$ 700,000. The trust is
sponsored by NCL and members of the sponsors family. The high school opened in 2000
for the children of the employees and general public of the area; has a staff of around 40
teachers and offers education to 400 students. The hospital has also been constructed in
the vicinity of the plant; enabling local population to get immediate medical attention
instead of traveling to the nearest city. Around 80 patients are treated daily in the hospital
by a staff of 30 people which includes 6 qualified doctors
2.2 2nd Variable

Business level strategies

Aggressive marketing has been the major factor in our consistent profitability over the past
years. Our strategy is to remain at the cutting edge in terms of exploring new markets and new
products. The focus is on niche marketing with specialized products. We have differentiated our
business through consistent quality reliable delivery and proactive handling of customer's needs.
Investment in state of the art technology and top quality human resources has been key element
of our business strategy. The organizational structure is lean with very little hierarchy and
bureaucracy compared to other organizations of similar size. This gives us the flexibility to
respond quickly to the changes in the market situation.
The business strategy defined as the medium that determines the long-term direction and field of
the company and determines how the company will obtain the resources needed to meet the
needs of the market and stakeholders. The most important strategies must be present in
companies as business strategy that aims to succeed in individual markets and must be linked to
corporate strategy objectives. The first step is to develop a strategy at the business division level
in analyzing the competitive market by gathering the necessary information about competitors in
the market, and people must be at a high level of competence to meet the needs of customers in
the best way possible. In addition, options to exploit and develop opportunities in the market
should be explored. The business division strategy is likely to be the most visible in every area of
business, and people within each department should have the ability to link their work directly to
their department’s strategy. They should also be aware of the appropriate ways to apply this
strategy by the best means. There is a clear definition of the business department and its tasks,
vision and values. Team Strategy in organizations need a group of opposing work teams to
implement company and business strategy strategies successfully. Each team must have its own
strategy to carry out its assigned tasks. All strategies should support each other to ensure success
for the organization. One of the most important elements of success and effectiveness in the
work of the team is to apply the best management methods to help the team to achieve success,
in addition to managing resources, focusing on quality at work, and excellence in the
implementation of business.

The business strategy construct

Many different definitions and typologies of business strategy have been proposed in the strategy
literature. The original typology is that of Porter, it encompasses the generic strategy of
differentiation, cost leadership and focuses. The strategic classification scheme employed based
on Porter’s strategies of differentiation versus cost. The research considered the generic
strategies of differentiation and cost exclusive of focus because these are the two basic types of
competitive advantage a firm can possess. However, the Strategies may be dimensions along
which firms can score high or low.
 Classification of business strategy
The classification of a firm’s business strategy into different categories of descriptions. The
sample distribution across categories appear in parentheses, Differentiation Company’s business
strategy is to differentiate its product offering by creating a product that is recognized industry
wide as being unique and which can command a premium price due to the uniqueness of its
attribute. Company managers devote a great deal of attention to product differentiation, although
cost reduction is not ignored. The approach or approaches that company uses for differentiating
its products from others may include one or more of the following: quality, brand image,
superior product performance, innovative product technology, product reliability, a large number
of product features or options, excellent customer service, superior accessibility to product,
speed of delivery. The company’s business strategy is to differentiate its products from similar,
competing products based on one or more attributes quality service also to provide a
competitively priced product offering. Therefore, although the company’s major strategic
emphasis is on product differentiation, the firm is also concerned with minimization of costs and
pays a great deal of attention to operating efficiencies. The company’s primary strategic
emphasis is to provide the lowest or one of the lowest priced product offerings available in the
industry. The company aggressively pursues cost reductions from experience, and places a great
deal of emphasis on operating efficiency and fixed cost and overhead control. A secondary
strategic emphasis is on differentiating the company’s products from competing products based
on one or two actual or customer perceived product service attributes. The company’s business
strategy is to achieve overall cost leadership within its industry. Important components of this
strategy include the aggressive construction of efficient-scale facilities, vigorous pursuit of cost
reductions from experience, emphasis on operating efficiency, tight cost and overhead control,
avoidance of marginal customer accounts, and cost minimization in areas like R&D, service,
sales force, advertising, etc. Company managers devote a great deal of attention to reducing costs
although quality service, and other areas are not ignored.

Successful business strategy

Creative a good business strategy should keep in mind before implementing a strategy,
remember what your primary goal is remember your audience or target customers, focus on your
products and services, brag to the public about the uniqueness and quality of the products and
services you are offering, to communicate effectively and justify the price you are charging
customers, make realistic and attainable plans, perform an analysis to identify the possible risks
and have a backup plan ready that you are always equipped to face any kind of competition
.

2.3 3rd Variable

Functional strategies
All organizations irrespective of the size, nature and scope of business must perform the
functions like Marketing Finance Production & Operations Human Resource Management
Research & Development etc. Careful planning, execution and coordination of these functions
are highly essential for effective strategic planning, implementation and control

Marketing Strategies
These strategies involves analysis, development and implementation of activities • Marketing
strategies can be studied under the following areas Product and Service strategies Pricing
Strategies Place / Distribution Strategies Promotion Strategies

Place / Channel of Distribution Strategies

 This strategy depends upon whether the company wants to sell directly or outsource its
distribution function
 Most of the companies still prefer to distribute their products through market
intermediaries •
 Hence channel differentiation can be a distinctive competitive advantage Egg. BSNL’s
success is due to location of pay phones/STD outlets even in corners of small towns and
villages throughout India by appointing agents

Promotion Strategies
 This strategy includes advertising, personal selling and sales promotion
 Companies should have large advertising budgets during product introduction stage in
order to create customer acceptance
 The companies whose brand is enjoying a high market share can have a low advertising
budget
 Companies however spend more on advertising in a highly competitive environment

Financial Strategies
 Finance is a fundamental resource for starting and conducting of a business
 Financial strategies are centered around acquiring capital, reducing cost capital etc.
 Also making complex investment decisions through capital budgeting financing and
dividend decisions capital structure working capital strategies in terms of accounts
receivables, inventories, cash flow management etc.
Capital Structure Strategy
 Capital structure is a mix of equity capital, preference capital, retained earnings and debt
capital
 Companies formulate optimum capital structure strategy in order to balance the
advantages and disadvantages/ risks
 Optimum capital structure possesses the following features
 Generation of maximum rate of return on capital employed for the purpose of
maximization of wealth of equity shareholders
  Excessive debt capital results in risk of solvency of the company hence they should limit
the debt capital at a point where the risk begins
 Companies should adopt a flexible structure in order to adapt the structure to the
economic situations
 The amount of debt capital should be within the capacity of the company to generate
future cash flows
 Capital structure of the company should result in control of risk in debt capital

Dividend Strategy
 This is to decide the amount of profits to be distributed to shareholders after retaining
certain amount of profits as a surplus
 This is for the future investment of the company and earning benefit to the shareholder
 In turn this enables the company to generate the capital for future investment purpose
which involves the least cost of capital as well as risks
 Dividend strategy is to maximize the shareholders return in the long run by maximizing
the value of investment
 Thus dividend strategy balances the current returns and capital gains
Human Resource Strategies
 This is the critical, dynamic and living resource of an organ. Unlike other resources
 HRM strategies percolate into other functional strategies and integrates all of them
towards corporate and business level strategies
 HRM is managing the functions of employing, developing, compensating and utilizing
human resources
 This results in development of human and industrial relations which would shape the
future policies and practices of human resource management
 This is with a view to contribute proportionately to the organizational, individual and
social goals
Objectives of Human Resource Management
 To create and utilize an able and motivated workforce and to accomplish the basic
organizational goals
 To establish and maintain sound organizational structure and desirable working
relationships among all members of the organization
 To secure the integration of an individual and groups within the organization by co-
ordination of the individual and group goals with those of the organization
 To create facilities and opportunities for an individual or group development so as to
match it with the growth of the organization
 To satisfy individual and group needs by providing adequate and equitable wages,
incentives, employee benefits and social security
Organization Structure and HRM Strategies
  Recent development in the organizational structure is the virtual structure
 Virtual organizations is a social network in which all the horizontal and vertical
boundaries are removed
 It consists of individuals working out from physically dispersed workplaces or
individuals working from mobile devices and not confined to any particular workplace
 It is a coordinated intense structure consisting primarily of patterns and relationships,
and this form needs the communication and information technology to function
 Limited number of employees coordinate the function and activities of various
outsourced agencies
 Combine human skills, financial resources, marketing /customer needs, advertising
agencies, innovations etc.
 This is done with the help of communication and information technology
 A network of relationships coordinates the manufacturing, financing, human resourcing,
marketing and other activities
 There are partial and virtual organizations
 They physically perform some activities and outsource the remaining activities
 BATA physically markets its products and outsources the manufacturing activities

Strategic Management and Performance Appraisal

 Just like HRM practices Performance Appraisal practices also depends upon the strategy
adopted by the company
 Traditional techniques of performance appraisal are appropriate for the stability and
sustainable growth strategies
 Appraisal by the superior is appropriate for these strategies
 Modern performance appraisal techniques are suitable for growth strategies like
expansion, diversification, joint ventures, mergers and acquisitions
 Performance appraisal by the customers, subordinates and peers in addition to the
superiors help employees to have a feedback from multiple directions
 This helps in identifying deficiencies and acquire competencies through training and
development
 This along with the 360 degree performance appraisal enhance employee creativity that
contributes to achievements like new product development, low cost leadership and
differentiation strategies

Strategic Management and Performance Appraisal Team Training

 Organizations mostly rely on team work and team management to achieve goals
 This is more prevalent in activities like production, marketing, customer relationship,
supply chain and finance
 Teamwork results in synergy and produces greater efficiency for organizational success
Strategic Management and Performance Appraisal Diversity Training
  Number of employees from varying ethnic groups as well as diverse background has
been increasing
 This brings varied knowledge that helps the organization in making accurate and
efficient decisions
 Organizations need to provide diversity training in order to get the advantage of diversity
 Employers prefer to retain more talented employees while they retrench less talented
employees
 Employers modify the existing HR strategies and craft new strategies in order to pay
more salaries, provide more benefits and create high quality of work life to retain the
best employees

2.4 4th Variable

Competitive strategy
The competitive strategy is primarily a result of the managerial decision-making model to guide
the organization in how to compete in a highly competitive business environment.The basic idea
of the general strategy concept is that competitive advantage is the core of any strategy.
Therefore to gain a competitive advantage needs to make decisions establish a viable
organizational structure and adopt a good management approach to achieve the desired
competitive advantage and the scope of achieving the goal. The previous study found that
strategies that achieve above-average performance in any industry are cost-leading. Each
common strategy involves a fundamentally different path to achieving performance, and the
organization must decide what to pursue the competitive advantage (cost leadership,
differentiation or focus) to achieve the above industry performance. However, there are two
variants of the focus strategy, cost focus and differentiation focus. Organizations that develop,
practice, and maintain differentiated strategies will enjoy industry performance if they are at a
premium price. The organization shows more likely to adopt differentiated strategies to
differentiate themselves from industry competitors. Similarly, if an organization gains overall
cost leadership and performs construction work at a comparable or lowest response price to its
competitors, they can also achieve performance above the industry. However, it is intended to
adopt any of these strategies, especially in a project-based industry where each strategy is unique
and the organization must bargain and utilize all possible sources of cost advantage. The
strategic management and general strategies affect organizational performance in different ways,
so they are adopted by organizations that wish to surpass competitors.

Chapter 3
3.1 Framework of study
Draw a figure showing the relationships between your variables.
 Chapter 4
Research Methodology

4.1 Questionnaires
Find questionnaires on your variables from google. Make a table of your questionnaires and add
5 to 6 items of scale. Then do semi structured interview from manager or employees of
organization,

4.2 Study Design

Qualitative research
 Chapter 5
5.1 Discussion

5.2 Discussion on obj 1

5.3 Discussion on obj 2

5.4 Discussion on obj 3

5.5 Recommendations

5.6 Conclusion
 Chapter 6
References