Company Analysis On Pacific Jeans LTD

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Company Analysis on Pacific Jeans Ltd.
Career Management (University of Chittagong)
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PROJECT REPORT ON COMPANY ANALYSIS AND

IMPROVEMENT GUIDELINES OF PACIFIC JEANS
LTD.
HUMAN RESOURCE MANAGEMENT

UNIVERSITY OF CHITTAGONG
Submitted to
Abdullah Al Mamun
Assistant Professor
Department of Human Resource Management
University of Chittagong
Chattogram-4331, Bangladesh
Submitted by
Iftekhar Ahmed
ID 15305096
Session: 2018-2019
Chattogram-4331, Bangladesh
Date of Submission: March 10, 2022

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LETTER OF SUBMISSION
10th March, 2022
Abdullah Al Mamun
Assistant Professor
Chattogram, Bangladesh 4331.
Subject: Submission of MBA Project Report.
Dear Sir,
With due respect, I would like to deliver my great pleasure for having such an
opportunity to submit my MBA project report on “Company analysis and
improvement guideline of Pacific Jeans Ltd.”. Without the sincere co-operation and
proper guidance of you, it would not be possible for me to prepare the report. While
preparing this report, I have put my wholehearted effort to overcome all the
shortcomings and tried to interpret my observation in the best way.
I hope you will assess my report considering all the shortcomings. For any kind of
clarification, I will always be available. Your kind advice will encourage me for further
research.
Sincerely Yours,
Iftekhar Ahmed
ID: 15305096
Session: 2018-19

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ACKNOWLEDGEMENT
Preparation of Project report after MBA 2nd Semester may be a mandatory task
consistent with Chittagong University academic curriculum. Actually, our study system
is restricted in theories. We’ve only a few opportunities of practical task. So, this project
program has been designed for the scholars of MBA 2nd Semester to accumulate
practical and special knowledge. Because students should have sound practical
knowledge about the present business world. In developed countries business schools
bestow more magnitude on practical knowledge. Keeping this fact in mind our
curriculum is meant to organize the Project report and that’s why I’ve made this report.
My report concern about Pacific Jeans Ltd.
I owe a profound sense of gratitude to all or any the marvelous persons who have
contributed directly or indirectly in preparing this report. I’m highly pleased to my
honorable supervisor Abdullah Al Mamun, Assistant Professor, Department of Human
Resource Management, University of Chittagong, for his perseverance, direct
supervision and hearty caring.
My hearty thanks also attend my all honorable teachers, friend’s et al. who have helped
me to organize this report. Without their support it might not be possible to organize
this report successfully.

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SUPERVISOR’S DECLARATION
I am happy to certify that the MBA Project report on “Company analysis and
improvement guideline of Pacific Jeans Ltd.” is prepared by a student of Department
of Human Resource Management belonging to Iftekhar Ahmed, ID: 15305096,
Session: 2018-2019, for the partial fulfillment of the MBA program from University of
Chittagong. I certify that this work and contents of this report has been conducted under
my supervision.
Supervisor
Abdullah Al Mamun
Assistant Professor

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EXECUTIVE SUMMARY
As part of my MBA program, I have completed my project on Pacific Jeans LTD.

During my project period I have gained valuable knowledge. So, based on my learning
and experience I have completed my project report on “Company Analysis and
Improvement Guideline of Pacific Jeans Ltd.”
In the first chapter, I describe the background of the study, objectives of the report,
research methods as well as the sources from where the data are collected, and
limitations of the report. The second chapter represents the company background,
mission, vision, and objectives of Pacific Jeans Ltd. Third chapter discusses the
economy of Bangladesh and impacts of RMG sector in the economy of
Bangladesh. The fourth chapter describes the overview of the Pacific Jeans Ltd. with
porter’s five forces analysis. The fifth chapter discusses and analyze internal &
external environment of Pacific Jeans Ltd. with PESTLE, VRIO analysis, product life
cycle, BCG Matrix, balance scorecard, and SWOT analysis. In the sixth chapter value
chain of Pacific Jeans Ltd. has been analyzed and discussed. In the seventh chapter, I
tried to find the relevant problems of the Pacific Jeans Ltd. In chapter eight, I have
given some recommendations based on the problems and this chapter includes the
conclusion also. Finally, the references that I used during the preparation of this report
are given in APA standard format.

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TABLE OF CONTENTS
INTRODUCTION..........................................................................................................
1.1 INTRODUCTION ................................................................................................ 1
1.2 RATIONAL OF THE STUDY ............................................................................ 1
1.3 OBJECTIVES OF INDUSTRY REPORT ........................................................... 2
1.4 RESEARCH METHODS ..................................................................................... 2
1.5 LIMITATION OF THE STUDY ......................................................................... 3
COMPANY PROFILE ..................................................................................................
2.1 COMPANY OVERVIEW.................................................................................... 5
2.2 HISTORICAL BACKGROUND ......................................................................... 5
2.3 UNITS OF PACIFIC JEANS GROUP .......................................................... 6
2.4 FACTORY INFORMATION OF PJL .............................................................. 7
2.5 VISION, MISSION & VALUE STATEMENTS ........................................... 7
2.6 BUYERS OF PJL ................................................................................................. 7
2.7 PRODUCTS OF PJL .......................................................................................... 8
2.8 DEPARTMENTS OF PJL ................................................................................. 8
2.9 WORKING HOURS OF PJL ........................................................................... 9
2.10 ORGANOGRAM OF PACIFIC JEANS GROUP ........................................... 10
2.11 KEY PERSONNEL OF THE GROUP & FACTORY .................................... 11
ECONOMIC ANALYSIS OF BANGLADESH ..........................................................
3.1 ABOUT THE ECONOMY OF BANGLADESH .............................................. 13
3.2 INDICATORS OF ECONOMY ........................................................................ 13
3.2.1 GDP ........................................................................................................................ 13
3.2.2 GDP Growth Rate ................................................................................................... 14
3.2.3 Inflation Rate .......................................................................................................... 15
3.2.4 Per Capita Income ................................................................................................... 15
3.2.5 Unemployment Rate ............................................................................................... 16
3.3 CONTRIBUTION OF RMG SECTOR IN THE ECONOMY OF
BANGLADESH ....................................................................................................... 17
INDUSTRY ANALYSIS ...............................................................................................
4.1 PORTER’S FIVE FORCES ANALYSIS FOR PACIFIC JEANS LTD. .......... 23
4.1.1 Competitive Rivalry between Existing Players....................................................... 23
4.1.2 Bargaining Power of Suppliers for Pacific Jeans Ltd. ............................................ 25
4.1.3 Bargaining Power of Customers for Pacific Jeans Ltd. .......................................... 26
4.1.4 Threat of New Entrants for Pacific Jeans Ltd. ........................................................ 27

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4.1.5 Threat of Substitutes for Pacific Jeans Ltd. ............................................................ 28

EXTERNAL ENVIRONMENT ANALYSIS ..............................................................
5.1 PESTEL ANALYSIS ON PACIFIC JEANS LTD. ........................................... 30
5.1.1 Political Analysis for Pacific Jeans Ltd. ................................................................. 30
5.1.2 Economic Analysis for Pacific Jeans Ltd. .............................................................. 30
5.1.3 Social Analysis for Pacific Jeans Ltd. ..................................................................... 31
5.1.4 Technological Analysis for Pacific Jeans Ltd. ........................................................ 31
5.1.5 Ecological Analysis for Pacific Jeans Ltd. .............................................................. 32
5.1.6 Legal Analysis ........................................................................................................ 32
5.2 INTERNAL ENVIRONMENTAL ANALYSIS FOR PACIFIC JEANS
LTD………………….. ............................................................................................ 32
5.2.1 Product life cycle of Pacific Jeans Ltd. ................................................................... 32
5.2.2 BCG matrix for Pacific Jeans Ltd. .......................................................................... 34
5.2.3 Balance scorecard for Pacific Jeans Ltd.................................................................. 36
5.2.4 VRIO Analysis for Pacific Jeans Ltd.: Based on products ..................................... 37
5.2.5 SWOT analysis ....................................................................................................... 37
ANALYSIS OF THE COMPANY ........................................................................... 40
6.1 PRIMARY ACTIVITIES OF VALUE CHAIN OF PACIFIC JEANS LTD….41
6.1.1 Inbound logistics ..................................................................................................... 41
6.1.2 Operations ............................................................................................................... 43
6.1.3 Outbound Logistics ................................................................................................. 53
6.1.4 Marketing and Sales ................................................................................................ 53
6.2 SUPPORT ACTIVITIES OF VALUE CHAIN OF PACIFIC JEANS
LTD……... ............................................................................................................... 56
6.2.1 Human resource management of Pacific Jeans ltd. ................................................. 56
6.2.2 Technology development of pacific jeans ltd. ........................................................ 65
6.3 RESEARCHES AND DEVELOPMENT DIVISION ....................................... 65
6.4 FINANCIAL MANAGEMENT OF PACIFIC JEANS LTD. ........................... 66
PROBLEM IDENTIFICATION ..................................................................................
7.1 PROBLEMS NEED TO BE DEALT WITH ..................................................... 69
RECOMMENDATIONS & CONCLUSIONS ............................................................
8.1 RECOMMENDATION FOR IMPROVEMENT .............................................. 71
8.2 CONCLUSION .................................................................................................. 71
References ................................................................................................................... 73

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LIST OF FIGURES
Figure 2.1 Units of Pacific Jeans Group (Pacific Jeans, n.d.) ........................................ 6
Figure 2.2 Products of PJL (Pacific Jeans, n.d.) ............................................................ 7
Figure 2.3 Products of PJL (Pacific Jeans, n.d.) ............................................................ 8
Figure 2.4 Organogram of Pacific Jeans Ltd. .............................................................. 10
Figure 3.1 GDP of Bangladesh (trading economics, 2019) ......................................... 14
Figure 3.2 GDP growth rate of Bangladesh (trading economics, 2019) ...................... 14
Figure 3.3 Inflation rate of Bangladesh (trading economics, 2019) ............................ 15
Figure 3.4 Per capita income of Bangladesh (trading economics, 2019) .................... 16
Figure 3.5 Unemployment rate of Bangladesh (trading economics, 2019) ................. 16
Figure 3.6 RMG exports contribution to the GDP ....................................................... 20
Figure 4.1 Porter’s Five forces analysis for Pacific Jeans Ltd. .................................... 24
Figure 5.1 Garments/Fashion Product Life Cycle ....................................................... 32
Figure 5.2 BCG matrix of Pacific Jeans Ltd. ............................................................... 35
Figure 5.3 SWOT analysis for Pacific Jeans Ltd. ........................................................ 37
Figure 6.1 Value Chain ................................................................................................ 41
Figure 6.2 Basic organgram of the human resource department of Pacific Jeans Ltd. 56
Figure 6.3 The personnel recruitment process of Pacific Jeans Ltd. ........................... 59

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LIST OF TABLES
Table 2.1 Board of Directors of Pacific Jeans Group. ................................................. 11

Table 2.2 Factory key personnel of Pacific Jeans Group............................................. 11
Table 2.3 Group key personnel of Pacific Jeans Group............................................... 11
Table 3.1 Contribution of RMG in Total Export of Bangladesh (TRADE
INFORMATION, 2018) .............................................................................................. 18
Table 3.2 Export performance of RMG in FY 2016-2017 (in million USD) (Export
performance, 2018) ...................................................................................................... 19
Table 3.3 OLS Results ................................................................................................. 21
Table 4.1 Bargaining Power of Suppliers for Pacific Jeans Ltd. ................................. 25
Table 4.2 Bargaining Power of Customers for Pacific Jeans Ltd. ............................... 26
Table 4.3 Threat of New Entrants for Pacific Jeans Ltd. ............................................. 27
Table 4.4 Threat of Substitutes for Pacific Jeans Ltd. ................................................. 28
Table 5.1 Balance scorecard for Pacific Jeans Ltd. ..................................................... 36
Table 6.1 Inbound logistics of Pacific Jeans Ltd. ........................................................ 42
Table 6.2 Types of sample & their uses ....................................................................... 45
Table 6.3 Working Process of Sewing Department ..................................................... 48

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CHAPTER ONE
INTRODUCTION

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1.1 INTRODUCTION
RMG is one of the most prominent industry which earns the most in terms of foreign
exchange through exporting clothing of various kinds all over the world. Also,
Bangladesh is in the leading position in the same industry. The industry is supporting
the financial solvency of Bangladesh since its independence. Bangladesh is in the 7th
position in RMG export ranking to the EU.
Among the RMG firms that leads the industry in this country, Pacific Jeans Group is
in the top chart. As leader organization in this industry, Pacific Jeans Group has a lot
for the others to learn from it. So, this made me interested in taking a challenge to
exhibit the pros and cons of this very organization in this report with a goal to introduce
the operational tactics of Pacific Jeans Group to those who need to know.
The project report, a part of the academic discipline for the MBA students, has been
designed to acquire an overall idea and expected that the integration of knowledge in
and experience will enable us to become effective. The focus of this report is to have
an overall idea about how the Pacific Jeans Group conduct their business. Pacific Jeans
Ltd. is located in CEPZ, Chittagong, Bangladesh, which is renowned throughout the
world and serving a line of very prominent brands.
I will analyze the overall operation of business of the respective company with the light
of an outsider’s point of view and will try to find out the problems it faces in managing
and conducting the business give recommendations against those problems.
1.2 RATIONAL OF THE STUDY
This project report is generated under the supervision of Abdullah Al Mamun, Assistant
Professor, Department of Human Resource Management, University of Chittagong.
This report is required to fulfill award of MBA Degree. The topic of the report is
“Company Analysis and Improvement Guideline Pacific Jeans Ltd.”.
I have tried my level best to make the report an excellent one by doing correct justice
to the topic.

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1.3 OBJECTIVES OF INDUSTRY REPORT
The overall purpose of this project is to acquire knowledge about the internal and
external environment of the Pacific Jeans Ltd.
Specific objectives:
• To know about the contribution of RMG sector in the economy of Bangladesh
and to analyze Pacific Jeans Ltd. by using porters five forces model.
• To analyze environmental factors of Pacific Jeans Ltd. by using PESTEL,
Product life cycle, BCG matrix, Balance Scorecard, VRIO analysis and SWOT
analysis.
• To analyze various functional departments of Pacific Jeans Ltd. by assessing its
value chain.
• To find out problems in the Pacific Jeans Ltd. and recommend solutions
accordingly.
1.4 RESEARCH METHODS
Study Design: This report has been prepared based on the information gathered
during the period of project report. The significant feature of the report is that I have
utilized both primary and secondary data to design the report. The Primary data has
been collected from the sample units only by direct interview method. The secondary
data or the sources of secondary data were as manuals, papers, reports, periodicals,
documents and records of the organization.
Primary Data: For collecting primary data, a structured questionnaire was developed
to interview persons directly involved in the organization. In order to collect primary
data, the following methods have been applied:
a. Interview – Direct interview method was used to collect information for

preparing this report.
b. Observation- Surveyor while taking interview will use his own observation to
collect information.

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c. Discussion with various officers and workers.

Secondary Data: I have relied mostly of the secondary data to design the report. To
collect secondary data had to depend on various source of information-the internet,
articles related to the topic and documents provided by the company.
Data Processing, analysis and presentation: All the collected data (primary and
secondary) have been processed and analyzed chronologically. After conducting the
research work, the findings have been processed with the help of some latest computer
program such as MS Word, MS Excel has been used to present and analyze the data.
1.5 LIMITATION OF THE STUDY
I tried my best to collect the maximum information from Pacific Jeans Ltd. But this
report is not free from short faults. The study has been conducted subject to certain
constraints:
• The company’s policies barred it from sharing the level of information

the study requires.
• Lack of sufficient accessible books and journals about Garments industry.
• The website of the company does not provide expected amount of
information required for the study.
• The level of data about the company on the internet is close to scares.
• Published information is not up to date.
I, therefore, hope that the study will be evaluated subject to the recognition of the above-
mentioned shortcomings.

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CHAPTER TWO
COMPANY PROFILE

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2.1 COMPANY OVERVIEW
The Pacific jeans LTD is a concern of Pacific Jeans Group and it is the most modern
fashion wear manufacturing company at Sea-port “Chittagong” in Bangladesh. PJL was
started its construction work in the year of 2006 and completed in the year of 2008
under the instructions and observation of mother factory of Pacific Jeans Group. It was
made its glorious inauguration in 25 April in 2008.
As a part of Pacific Jeans Group, PJL makes a great contribution to boost the economy
of Bangladesh by manufacturing casual wears for global market with about 10,000
workforces. (apparelresources, 2017)
2.2 HISTORICAL BACKGROUND
Mr. Md. Nasir Uddin is designated as chairman and Managing Director (MD) of
Pacific Jeans Group. He made his journey with a factory, named NZN Fashion LTD
in 1984 with only 500 people. He was the first denim manufacturer in Bangladesh and
at first his factory began to produce jeans for an Italian brand. Two years later, Mr.
Md. Nasir Uddin founded the first denim laundry in 1986 at CEPZ in Bangladesh.
With the passage of time, the company has made continuous blooming as premium
jeans Manufacturing Company.
In 1994, He established Pacific Jeans LTD with 1500 people after that the company
expanded its production capacity with eight units named NZN Fashion, Pacific Jeans
limited, Pacific Jeans LTD, Jeans 2000 LTD, Universal Jeans LTD, NHT Fashion
LTD, Pacific Casual and NHT Holding. With continuous focus on quality
improvement and value addition, adoption of updated denim processing technology,
commitment towards maintaining safe and healthy workplace for the workers and
strict adherence to customers’ compliance requirements, this group has become one
of the most preferred suppliers of the leading global fashion retailers. (APPAREL
MERCHANDISING BLOG, n.d.)

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2.3 UNITS OF PACIFIC JEANS GROUP
At present, Pacific Jeans Group comprises of five main business units:
Pacific Jeans LTD

Processing Zone
Chittagong,Plot # 14-19, Sector # 05
Export, Bangladesh.
Products: Jeans and Casual Wears (Bottom)
Per day Capacity: 40,000 pcs
Year of Establishment: 25.11.1994
Pacific Accessories Limited Jeans 2000 Limited

Plot # 07, Sector # 5/A. Plot # 67, Sector # 7
Export Processing Zone Export Processing Zone
Chittagong, Bangladesh Chittagong, Bangladesh.
Products: Garments Acc. & Packing Products: Jeans and Casual Wears Per
Materials Day Capacity: 15,000 pcs
Year of Establishment: 01.07.2000 Year of Establishment: 02.05.2004
Universal Jeans Limited NHT Fashions Limited

Plot # 9-11, Sector # 6/A. Plot # 20-22, Sector # 05
Export Processing Zone Export Processing Zone
Chittagong, Bangladesh. Chittagong, Bangladesh.
Products: Jeans and Casual Wears Products: Jeans and Casual Wears
(Bottom) (Bottom)
Per day Capacity: 50,000 pcs Per day Capacity: 25,000 pcs
Year of Establishment: 01.01.2008 Year of Establishment: 2013
Figure 2.1 Units of Pacific Jeans Group (Pacific Jeans, n.d.)

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2.4 FACTORY INFORMATION OF PJL
Location of Pacific Jeans Ltd : Plot # 9-11, Sector # 6/A, CEPZ,

Chittagong. Nearest port of loading : Chittagong Port (within 30
minutes) Category of the company : ‘C’ type (100% Bangladeshi)
ownership) Total area of factory : 90000 ft2
Total manpower : 9500
2.5 VISION, MISSION & VALUE STATEMENTS
Mission: Be a Global Life wear Solution Company

Vision: Hit the Billion by 2028
Values: Speed; Integrity; Innovation; Sustainability; Quality;
(Pacific Jeans, n.d.)
2.6 BUYERS OF PJL
Figure 2.2 Products of PJL (Pacific Jeans, n.d.)

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2.7 PRODUCTS OF PJL
Man’s Trousers Ladies Trousers kids
• Denim • Long Denim • Kids wear

• Five Pocket • Shorts
• Shorts • Denim Skirts
• Chino • Garments Dye
• Bermuda Skirts
• Garments Dye
Figure 2.3 Products of PJL (Pacific Jeans, n.d.)
2.8 DEPARTMENTS OF PJL
The group operations of PJL are operated in the following list of departments,
• HR & Admin
• Sustainability
• Accounts & Finance
• Audit & Risk assurance
• CAD
• PAD
• Cutting
• Finishing
• Engineering
• Industrial Engineering (IE)
• ICT
• Material Control Department (MCD)
• Sewing
• Transport
• Washing (Wet process Day/Night)

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2.9 WORKING HOURS OF PJL
Shift: 02 (Day Shift and Night Shift)

All departments without Wet Process:
8:00 AM – 4:30 PM (with 1/2 hours launch break)
Washing (Wet Process):

A. Day Shift: 8:00 AM - 4:30 PM (Including ½ hour lunch time)
B. Night Shift: 8:00 PM-4:30 AM (Including ½ hour lunch time)

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2.10 ORGANOGRAM OF PACIFIC JEANS GROUP
Pacific Jeans Group has a very tight, strict and clear organizational hierarchy in place
to define the authority and responsibility of individual employees in the organization.
The organogram of Pacific Jeans Group is,
Figure 2.4 Organogram of Pacific Jeans Ltd.
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2.11 KEY PERSONNEL OF THE GROUP & FACTORY
The table 2.1, 2.2 and 2.3 lists all the key personals of the board of directors, group
key personnel and industry key personnel of the concerning company.
Table 2.1 Board of Directors of Pacific Jeans Group.
Table 2.2 Factory key personnel of Pacific Jeans Group.
Table 2.3 Group key personnel of Pacific Jeans Group.
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CHAPTER THREE
ECONOMIC ANALYSIS
OF BANGLADESH
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3.1 ABOUT THE ECONOMY OF BANGLADESH
Bangladesh’s economic freedom score is 52.7, making its economy the 137th freest in
the 2022 Index. Bangladesh is ranked 29th among 39 countries in the Asia–Pacific
region, and its overall score is below the regional and world averages.
Over the past five years, Bangladesh’s economy has continued to grow strongly.
Growth accelerated from 2017 through 2019, decelerated in 2020, and accelerated
again in 2021. However, a five-year trend of slowly expanding economic freedom has
been broken. With significant score decreases in labor freedom and trade freedom,
Bangladesh has recorded a 2.3-point overall loss of economic freedom since 2017 and
has fallen into the lower half of the “Mostly Unfree” category. Scores for tax burden
and government spending are excellent, but the country lags in rule of law and labor
freedom.
IMPACT OF COVID-19: As of December 1, 2021, 27,983 deaths had been attributed
to the pandemic in Bangladesh, and the government’s response to the crisis ranked
119th among the countries included in this Index in terms of its stringency. The
economy grew by just 3.8 percent in 2020. (The Heritage Foundation, 2022)
3.2 INDICATORS OF ECONOMY
For economic analysis of Bangladesh, I have considered the following indicators:

• GDP
• GDP Growth Rate
• Inflation Rate
• Per Capita Income
• Unemployment Rate
3.2.1 GDP
The Gross Domestic Product (GDP) is a metric that measures the worth of a
country's economic activities. GDP is the sum of the market values, or prices, of all
final goods and services produced in an economy during a given time period.
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GDP (Billion USD)

350.0
274.0 286.0
300.0
249.7
250.0 221.4
195.1
200.0
150.0
100.0
50.0
0.0 2015 2016 2017 2018 2019
Figure 3.1 GDP of Bangladesh (trading economics, 2019)
Bangladesh's economy has progressed significantly throughout this government's

tenure. The economy has improved from its previous state. The government operates
with a goal in mind. This government has undertaken a number of projects in order to
achieve the goal. The ICT sector has undergone a revolutionary transformation, and
this government is focusing on this sector. Bangladesh today has one of the world's
fastest expanding economies. It has drawn a greater amount of foreign investment than
in the past. The value of GDP in 2019 was 286 million USD, which is the highest it has
ever been.
3.2.2 GDP Growth Rate

The GDP growth rate indicates how quickly or slowly the economy is growing or
shrinking.
GDP Growth Rate%

9.0 7.9 8.2
7.6
7.1
8.0 6.6
7.0
6.0
5.0
4.0
3.0
2015 2016 2017 2018 2019
Figure 3.2 GDP growth rate of Bangladesh (trading economics, 2019)
Over the last five years, Bangladesh's GDP has grown at a solid clip. It has crossed
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the 8% barrier for the first time in history, indicating that the economy is in a rising
phase. In the following years, the administration expects to maintain this rate.
3.2.3 Inflation Rate

The rate at which the cost of goods and services rises over time is referred to as
inflation. It can also be regarded of as a decrease in the value of a currency because
consumers can now buy less with the same amount of money.
Inflation Rate %
6.4
6.2
6.2
6.0
5.8 5.7 5.7
5.6 5.6
5.6
5.4
5.2
2015 2016 2017 2018 2019
Figure 3.3 Inflation rate of Bangladesh (trading economics, 2019)
Though the economy of Bangladesh has seen a upward trend in the recent years but
it has failed to reduce the level of inflation. The inflation is always growing which
is a very bad indicator for economy. It says that purchasing power of people has not
improved though the income is growing.
3.2.4 Per Capita Income

The amount of money earned per person in a country or region is referred to as per
capita income. Per capita income can be used to calculate an area's average per-
person income and to assess the population's level of living and quality of life. A
country's per capita income is computed by dividing its national income by its
population.
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Per capita Income (USD)

2500.0
1905.0
1750.0
1606.0
1458.0
1500.0 1303.0
1000.0
500.0
2015 2016 2017 2018 2019
Figure 3.4 Per capita income of Bangladesh (trading economics, 2019)
In the recent years, there has been a huge change in per capita income of
Bangladesh. Last year was the highest which was 1905 $. But in the end, it has not
mattered in a big deal because a huge number of people live under poverty line and
the ever-growing inflation rate has not helped the cause.
3.2.5 Unemployment Rate
The unemployment rate is defined as the percentage of the labor force that is
unemployed. It's a lagging indicator, which means it rises or falls in response to
changes in the economy rather than forecasting them. The unemployment rate is likely
to grow when the economy is in poor shape and jobs are scarce. It is predicted to fall
when the economy is growing at a good pace and employment are plentiful.
Unemployment Rate %
4.4
4.3
4.3
4.3
4.2 4.2 4.2
4.2
4.2
4.1
4.1
4.1
4.0
2015 2016 2017 2018 2019
Figure 3.5 Unemployment rate of Bangladesh (trading economics, 2019)
Though Bangladesh's GDP is increasing, there has been little change in the
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unemployment rate, indicating that the government and private sector have not been
able to meet the expectations of job seekers. Thousands of new graduates graduate each
year, but they are unable to find positions that meet their expectations. One major factor
is their talent level, which forces corporations to hire people from other countries. A
significant number of people work in Bangladesh and earn a significant amount of
money. As a result, both the public and commercial sectors should work together to
increase local people's skill levels.
3.3 CONTRIBUTION OF RMG SECTOR IN THE ECONOMY OF

BANGLADESH
The ready-made garments (RMG) industry contributes to the Bangladesh economy in a

distinctive manner. The industry plays a significant role in terms of employment and
income generation of millions of people especially the poor. Some contributions of ready-
made garment (RMG) sectors to the national economy of Bangladesh are shown below:
RMG sectors contribution to export
RMG sector’s contribution to country’s export has experienced phenomenal growth over
the years. It has evolved as the main export earning sector of Bangladesh.
Following Table shows the comparative statement between RMG export and total export
of Bangladesh and we can say that in 1983-1984, the garments exports are only 31.57
million and the hare of national export is only 3.89%. The RMG export is increasing in a
good way and it reached 30,614.76 and the share of national export is 83.49% as well as
the major part of employment in Bangladesh getting from RMG sector. Table3 shows
that the monthly export performance of RMG of Bangladesh for 2016-2017 and 2017-
2018 in million USD. The RMG exports share in national export in fiscal year 2016-17
and 2017-18 are 81.23% and 83.49% i.e. RMG export is the largest sector of national
export in Bangladesh.
Contribution of RMG industry to the GDP
Garments industry is the largest exporting industry in Bangladesh, which experienced
phenomenal growth during last two decades. The sector has also played a significant role
in the socio-economic development of the country. To show the contribution of RMG
exports to GDP, graphical representation and regression analysis are used here.
Graphical representation: In such a context, Figure3 shows the percentage of ready-
made garments (RMG) contribution to gross domestic product (GDP) of Bangladesh. It
shows that the percentage of ready-made garments (RMG) contribution to the GDP is
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2.74% in FY 1990-191. The contribution of RMG sector to GDP almost is given up

growing pattern. In FY 2017-2018, the percentage of ready-made garments (RMG)
contribution to GDP was 12.26%. Therefore, we can say that the RMG sectors play an
important role in our national economy.
Regression analysis: Since the demand of RMG products is increasing day by day in the
world, so RMG export helps to build up the economy of Bangladesh. To show the
contribution and significance relationship between them, we have used here simple linear
regression model where GDP is considered as the dependent variable (Yt)and RMG
export as the independent variable (Xt). The estimated regression equation is as follows:
Y^t = 21482.86 + 6.22Xt
Table 3.1 Contribution of RMG in Total Export of Bangladesh (TRADE
INFORMATION, 2018)
Year Export of RMG Total export of Bangladesh % of RMG’s to total
export
(in million US$) (in million US$)
1983-1984 31.57 811.00 3.89
1984-1985 116.2 934.43 12.44
1985-1986 131.48 819.21 16.05
1986-1987 298.67 1,076.61 27.74
1987-1988 433.92 1,231.2 35.24
1988-1989 471.09 1,291.56 36.47
1989-1990 624.16 1,923.70 32.45
1990-1991 866.82 1,717.55 50.47
1991-1992 1,182.57 1,993.90 59.31
1992-1993 1,445.02 2,382.89 60.64
1993-1994 1,555.79 2,533.90 61.40
1994-1995 2,228.35 3,472.56 64.17
1995-1996 2,547.13 3,882.42 65.61
1996-1997 3,001.25 4,418.28 67.93
1997-1998 3,781.94 5,161.20 73.28
1998-1999 4,019.98 5,312.86 75.67
1999-2000 4,349.41 5,752.20 75.61
2000-2001 4,859.83 6,467.30 75.14
2001-2002 4,583.75 5,986.09 76.57
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2002-2003 4,912.09 6,548.44 75.01

2003-2004 5,686.09 7,602.99 74.79
2004-2005 6,417.67 8,654.52 74.15
2005-2006 7,900.80 10,526.16 75.06
2006-2007 9,211.23 12,177.86 75.64
2007-2008 10,699.80 14,110.80 75.83
2008-2009 12,347.77 15,565.19 79.33
2009-2010 12,496.72 16,204.65 77.12
2010-2011 17,914.46 22,924.38 78.15
2011-2012 19,089.73 24,301.90 78.55
2012-2013 21,515.73 27,027.36 79.61
2013-2014 24,491.88 30,186.62 81.13
2014-2015 25,491.40 31,208.94 81.68
2015-2016 28,094.16 34,257.18 82.01
2016-2017 28,149.84 34,655.90 81.23
2017-2018 30,614.76 36,668.17 83.49
Table 3.2 Export performance of RMG in FY 2016-2017 (in million USD)

(Export performance, 2018)
Year Month Knit Woven Total

July 1,077.23 1,040.35 2,117.58
August 1,395.61 1,330.68 2,726.29
September 927.95 894.08 1,822.03
October 1,134.35 1,021.19 2,155.54
2016
November 1,097.6 1,212.31 2,309.91
December 1,180.84 1,397.51 2,578.35
January 1,246.72 1,456.81 2,703.53
February 1,015.95 1,209.7 2,225.65
March 1,067.3 1,222.65 2,289.95
April 1,110.62 1,097.86 2,208.48
2017
May 1,250.77 1,236.69 2,487.46
June 1,252.31 1,272.76 2,525.07
Total FY 2016-2017 13,757.25 14,392.59 28,149.84
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Share in national export (%) 39.70 41.53 81.23

July 1,263.34 1,215.95 2,479.29
August 1,605.53 1,439.45 3,044.98
September 878.08 741.77 1,619.85
October 1,239.25 1,054.36 2,293.61
2017
November 1,258.1 1,266.41 2,524.51
December 1,350.97 1,459.58 2,810.55
January 1,311.11 1,571.22 2,882.33
February 1,219.28 1,381.63 2,600.91
March 1,195.48 1,382.93 2,578.41
April 1,219.15 1,251.97 2,471.12
2018
May 1,399.77 1,423.23 2,823
June 1,248.45 1,237.75 2,486.2
Total FY 2017-2018 15,188.51 15,426.25 30,614.76
Share in national export (%) 41.42 42.07 83.49
Figure 3.6 RMG exports contribution to the GDP
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Table 3.3 OLS Results
Variable Coefficient Std. error t-statistic Prob. r R2 Adjusted

2
R
C 21482.86 3505.996 6.127464 1.77E-06 0.98 0.96 0.95

RMG export 6.22 0.245597 25.32124 7.55E-20
From this Table, we can say that the value of R2 = 0.96 indicated that 96% proportion
of the dependent variable (GDP) is explained by the independent variable (RMG
export) and is close to 1 therefore the model is better fit the data. There is highly
significant relationship between GDP and RMG export since the values of correlation
coefficient (r) is 0.98. The coefficient of RMG export measures that if the RMG export
increases 1 USD, then on an average, GDP increases by 6.22 USD. Therefore, we can
say that the contribution of RMG export to GDP has a significant relation and it helps
us to the economy of Bangladesh.
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CHAPTER FOUR
INDUSTRY ANALYSIS
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4.1 PORTER’S FIVE FORCES ANALYSIS FOR PACIFIC JEANS

LTD.
4.1.1 Competitive Rivalry between Existing Players
Pacific Jeans Ltd. is the one of the apparels and textile supplier in the US & EU market.
It is shaping itself as a potential market player by providing the most quality with the
cheapest price possible.
Whilst the market is controlled by the bigger players like other companies, the role of
Pacific Jeans Ltd. is still important. Among the very few suppliers, Pacific Jeans Ltd.
imports most of its raw materials, but utilizes other factors of production to produce in
a cheaper manner. It offers investment friendly atmosphere for the brand names to
outsource their production process in Bangladesh.
Pacific Jeans Ltd. is putting up a show against other competitors by providing available
cheap prices and good quality. It has been facing tremendous growth even after the
alleviation of the quota from the US market. This is due close customer relationship
and quality production. It has this advantage against its rivals.
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Threat of new country with low

cost labor coming into RMG
production
bargaining power of Competitive rivallry Bargaining Power of

the Knit and cotton within the industry the customers from
supplier countries for getting the large the countries without
like china and India buyer's orders GSP or qouta facilities
Threat of the rise of synthetic

products, jute or banana fiber
clothes
Figure 4.1 Porter’s Five forces analysis for Pacific Jeans Ltd.
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4.1.2 Bargaining Power of Suppliers for Pacific Jeans Ltd.
Pacific Jeans Ltd. has always been enjoying the upper hand in ordering its inputs from
its suppliers. Pacific Jeans Ltd. has very few input or raw materials of its own. Most of
them are imported. Although this leads to a problem in reducing the opportunity to
initiate backward linkage, and thus increasing the supplier power, Pacific Jeans Ltd.
still manages to acquire the inputs at world price from its suppliers.
But the most importing aspect of Pacific Jeans Ltd. would always be the enthusiasm
and the prospect of growth it provides to the stakeholders in terms of success and
prosperity. Pacific Jeans Ltd.’s suppliers’ power is increasing in a slow but steady
manner as more and more local companies are stepping up to the task. It is creating an
integrated system of supply channel management by which the manufacturer’s work
load is reduced. Pacific Jeans Ltd. is more prone to order through local suppliers who
themselves apply to the task of importing raw materials and components necessary for
the production process.
Table 4.1 Bargaining Power of Suppliers for Pacific Jeans Ltd.
Degree of barriers
Name of Variables
High Medium Low
forces
(H) (M) (L)
Availability of substitute product
Importance of customer to the
Supplier’s
supplier
Bargaining
Differentiation of the supplier’s
Power
product and services
Switching costs of the buyer
Pacific Jeans Ltd. has a good reputation in terms of timely payment to the suppliers.
This reputation is helping create a longer-term relationship with the suppliers (foreign)
and is also giving the local firms initiative to step into the supply chain. It gives the
suppliers a large-scale advantage as the industry is quite concentrated in area basis.
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A good global reputation is helping Pacific Jeans Ltd. match the price with international
quoting with the suppliers both foreign and local ones. Suppliers although having a sort
of upper hand over Pacific Jeans Ltd., also regard it as a reliable source of repayment.
This reputation has been helping Pacific Jeans Ltd. to ensure prompt supply of raw
goods.
4.1.3 Bargaining Power of Customers for Pacific Jeans Ltd.
Pacific Jeans Ltd. realize that the buyer possesses more power than themselves. China’s
lead and India’s march to the top keep the Bangladeshi manufacturers/ suppliers on
their toes. Pacific Jeans Ltd. is providing a large space of choice to the provider in terms
of quality and cost. It is offering the lowest possible production price and also work that
is best in quality. Due to high switching opportunities for the customers, Pacific Jeans
Ltd. has to perform or allow the customers to win in many cases.
Table 4.2 Bargaining Power of Customers for Pacific Jeans Ltd.
Degree of barriers
Name of forces Variables
High Medium Low
(H) (M) (L)
Availability of suppliers
Switching costs
Product differentiation of
Customers suppliers
Bargaining Threat of backward
Power integration by buyers
Importance of the supplier’s
input to
quality of Mobile
Buyers are also interested in the growth aspect of the Pacific Jeans Ltd. It is growing as
a major player in the textile and apparel industry globally and due to the quota system,
it is quite an important player in the field. It still has its quota left in the EU market
where countries like China don’t have the entry. So, many countries are planning to use
Pacific Jeans Ltd. as a hub and buy the service to export under its label. That gives
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Pacific Jeans Ltd. a comparative advantage against the buyers of its services. And due
to immense quality assurance, it is continuing to be the best choice for many buyers in
the industry.
4.1.4 Threat of New Entrants for Pacific Jeans Ltd.
Pacific Jeans Ltd. has yet to reach economies of scale in terms of production. Thus, it
allows potential entrants to pose a threat to its growth. Pacific Jeans Ltd. is in a growing
stage. It’s growing in a rapid pace and is posing itself as an entrant to the more
established players. Thus, the threat of new entrants is quite minimal to its concern.
Table 4.3 Threat of New Entrants for Pacific Jeans Ltd.
Degree of barriers
Name of forces Variables
High Medium (M) Low
(H) (L)
Economies of scale
Product differentiation
Capital requirements are
Incumbent’s control of distribution
Threats of New
channel
Entrants
Incumbent’s proprietary knowledge
Incumbent’s access to raw
materials
Tax (for manufacturer)
Tax (for importers)
Moreover, new entrants would have to gain an advantage against Pacific Jeans Ltd.
whose growth ratio is almost 20% per year even after the MFA. A newer entrant would
thus cause fewer troubles to Pacific Jeans Ltd. The greatest advantage that Pacific Jeans
Ltd. has right now is cheap price (because of cheap labor). Cheap labor would continue
to be available until the living standards go up. Till that happens, labors will have low
rates in terms wages and keep Pacific Jeans Ltd. safe from any sort of new entrants.
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4.1.5 Threat of Substitutes for Pacific Jeans Ltd.

Pacific Jeans Ltd., in terms of substitutes, plays both the roles of an affected and an
opportunist. Other companies are growing their customer base at a higher pace than
Pacific Jeans Ltd. This is due to poor branding, and less power to influence customers.
Due to these reasons, customers sometimes prefer other companies to Pacific Jeans Ltd.
Table 4.4 Threat of Substitutes for Pacific Jeans Ltd.
Name of Degree of barriers

Variables
forces High (H) Medium Low
(M) (L)
The differentiation of the substitute
product
Rate of improvement in price-
Substitutes performance
relationship of substitute product

Differentiation in operation system
More to add, due to the lower production cost, Pacific Jeans Ltd. plays a major role in
substituting the other manufacturers. This opportunity has to be nurtured by the Pacific
Jeans Ltd. to ensure its growth and profitability.
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CHAPTER FIVE
EXTERNAL ENVIRONMENT
ANALYSIS
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5.1 PESTEL ANALYSIS ON PACIFIC JEANS LTD.
5.1.1 Political Analysis for Pacific Jeans Ltd.

Among various features of Pacific Jeans Ltd.’s political situation, most noticeable and
important conditions may be identified as follows –
• Absence of democratic political culture
• Absence the rule of law
• Absence of strong civil society
• Absence of strong political leadership
• Confrontational politics
• Corruption and terrorism
• Negativity/Double standard despite of many drawbacks, our government has taken
some positive initiatives in favor of foreign investors. There are no distinctions
between foreign and domestic private investors regarding investment incentives or
export and import policies. Incentives for investors include - 100% ownership in
most sectors, tax holidays, reduced import duties on capital machinery and spares,
100% duty-free imports and tax exemptions.
• Government policies for Foreign Investments: The stated policy of the government
of Bangladesh (BDG) is to pursue foreign investment actively, and it has enacted
a number of policies to this end. There are no distinctions between foreign and
domestic private investors regarding investment incentives or export and import
policies. Incentives for investors include: 100% ownership in most sectors; tax
holidays; reduced import duties on capital machinery and spares; duty-free imports
for 100% exporters; and tax exemptions.
5.1.2 Economic Analysis for Pacific Jeans Ltd.
From a small garment factory 33 years back, Pacific Jeans has come a long, long way
to be counted as Bangladesh’s top premium jeans manufacturer with annual turnover
of around US $ 400 million, producing over 36 million pairs of jeans yearly from its
five integrated set-ups and employing a workforce of 28,000 people. Apparel Online
caught up with the dynamic & young Director of Pacific Jeans, Syed M Tanvir, to
know his take on the denim industry of Bangladesh and Pacific’s endeavors to remain
the innovator and trendsetter as it is in denim manufacturing, and various other issues.
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5.1.3 Social Analysis for Pacific Jeans Ltd.

Women are the most unused labor force in our economy and those who are working are
not getting well compensation packages as compared to men. And it is garments that
have helped them to engage in the mainstream of the economy. About 78% of total
garments worker are woman who are significantly contributing to their families living
in slums and villages. Hence, they are participating in decision making of families.
From this point of view, the social impacts of Pacific Jeans Ltd. are as follows.
• Woman empowerment has been achieved.

• They are contributing to increase savings.
• They are interested population control
• Economic solvency of woman has been achieved.
• Their Children are getting educated more.
• Awareness about Health care has been increased
• Standard of living is increasing day by day.
5.1.4 Technological Analysis for Pacific Jeans Ltd.

The need for faster technological development is increasingly felt in Pacific
Jeans Ltd. Development plans of Pacific Jeans Ltd. have emphasized science and
technological research to develop technologies through adoption of imported
technology as well as development of indigenous technologies. As the company is
heavily dependent on imported technologies, proper planning is required for
its effective transfer through acquisition, assimilation and adoption. A National
Science and Technology Policy has been formulated and adopted by the Government.
It has laid down the directions for S and T activities and research,
institutional and manpower development. Dissemination and documentation
facilities. The National Council for Science and Technology (NCST)
determines S and T policies, reviews the activities of different institutions and provides
direction towards S and T research and activities.
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5.1.5 Ecological Analysis for Pacific Jeans Ltd.

Ecological impacts of Pacific Jeans Ltd. on the environment are not well enough to
describe because of poor waste management. The improper drainage system is mainly
responsible for it. Besides, government is not taking enough steps for waste
management in the city. Sound and air pollution are the outcome of this industry.
5.1.6 Legal Analysis

Government always encourages garments industry by its supportive hands most of the
time. That’s why a large number of companies have been established here and there in
the city. But recent fire in some notable garments company has drawn the sight of the
government. It has increased some legal and compliance issues. The workers do not
get proper wages and remuneration, working environment and safety from the
companies. That’s why government has intervened on this issue by enforcing the law
and order system. But Pacific Jeans Ltd. is maintaining its legal issues well.
5.2 INTERNAL ENVIRONMENTAL ANALYSIS FOR PACIFIC

JEANS LTD.
5.2.1 Product life cycle of Pacific Jeans Ltd.

The existence of product life cycle in clothing, reaching out more than one or a few
seasons, these cycles are usually expressed as a bell-shaped curve. In the case of
Pacific Jeans product life cycle, the patterns of profitability and the effects of
marketing are described below,
Figure 5.1 Garments/Fashion Product Life Cycle
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Introduction:
When new product of Pacific Jeans comes on the market, it is also revealed by new
techniques. It is promoted through advertisements, fashion shows, fashion magazines
etc. A few customers will be more imaginative than the larger part and, they spend
more money buying new products. The product is initially produced sparingly and
becomes of good quality. Products are invented by popular models or bands.
Growth:
As the popularity of the product of Pacific Jeans gradually increases, the acceptance of
the fashion increases. As a result, the acceptance of fashion increases, which in turn
increases the production of products. During this time the price goes down a bit. Its
quality tends to be less improved when acceptance increases a lot.
Maturity:
In this phase of the product life cycle of Pacific Jeans, the popularity of the product
reaches its peak. At this time fashion spread all around. The popularity of the product
is also lost after a specified time. This creates opportunities for new fashions. When the
popularity of the product decreases a lot, its price also decreases a lot.
Decline:
After a certain period of time, the popularity of old fashion decreases in the new fashion
market. As a result, people get annoyed with it. As people then focus on the new
fashion, the previous fashion is rejected. Fashion is usually compared to “train”.
Because fashion goes fast over time. Don’t wait for anyone.
Both the demand and the production capacity of Pacific Jeans Ltd. are likely to increase
for the upcoming years. Some smaller companies with shut down (just like before) and
the bigger companies will expand more and compete with one another vigorously.
Furthermore, the current administration of Bangladesh has set aside a sizable sum for
the Annual Development Project (ADP) budget for the government's planned
infrastructure projects in Bangladesh. These projects would produce a significant
demand for Pacific Jeans Ltd. in the market in the near future, giving these enterprises
additional options to meet their expanding production capabilities while also earning
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profits. By examining all of the data, it is evident that in the life cycle of a product
(industry in this case), Pacific Jeans Ltd. is now in the growth stage in Bangladesh.
The product life cycle model can aid in the analysis of a product's or industry's various
stages of maturity. As time passes, sales reach their peak. During this era, sales are
frequently increasing. Many competitors appear to enter the market at this point, and
profit appears to be fast increasing.
The facts related to the Pacific Jeans Ltd. industry of Bangladesh can be related. Pacific
Jeans Ltd.'s sales are now expanding as a result of strong demand in both the domestic
and international markets. Furthermore, the number of competitors in this industry is
growing every day. While some smaller businesses are closing, the larger businesses
are expanding and competing with the market's existing players. In the foreseeable
future, these companies and the sector as a whole have a lot of room for expansion.
5.2.2 BCG matrix for Pacific Jeans Ltd.

Portfolio plan of Boston Consulting Group (BCG) that has been developing since 70's
is based on the assessment analysis of existing products, possibilities of modifying
products or manufacturing new ones. Starting from researches done by BCG, it has
been concluded that a strategic position of business is determined in accordance with
relative market participation and a market growth rate.
Growth rate can be positive (meaning growing market), naught (standing for stagnated
market) and negative (i.e. falling market in future). Market growth rate is indicated with
"low" and "high" in BCG matrix meaning that market growth rate of that garment
manufactures is lower or higher than growth of an entire economy of the region.
At so called Boston matrix, products of Pacific Jeans are indicated as follows:
• Stars - products with a high participation on a market and a high market

growth rate (garments that bring profit but needs a large investment in textile
material as well as a technological process of production).
• Cash cows - garments that are main sources of profit
• Dogs - products with low growth rate and low rate of market participation
(garments with low participation on a market that stagnates - stops producing
them).
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• Problem children (question mark) - products with a high growth rate and small
market participation (garments that bring small profit, but are promising so
they cannot be neglected).
According to this matrix an integral indicator of all market characteristics stands for a
growth from the following reasons,
• Growth is the best measure of life cycles of a product

• It is easier to win a market share when product attracts new customers,
• It is easier to keep than to conquer a market,
• Market is larger and non-competitive on a growing market,
• New competitors can be discouraged by aggressive appearance on a growing
market.
•More orders by •Modification of

existing customers garments.
and consumers. • Different Quality
• Winning customers levels of garments.
and consumers over • New design of
from competitors. Problem garments.
• Price reduction Stars
Children
Cash
Dogs
•New segments of Cows
marketing. • New supply on a
new market.
• New channels of
distributionh. • New shops on a new
market.
• New geographical
region
Figure 5.2 BCG matrix of Pacific Jeans Ltd.
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5.2.3 Balance scorecard for Pacific Jeans Ltd.

Table 5.1 Balance scorecard for Pacific Jeans Ltd.
Resources/capabilities Valuable Rare Inimitable Without Type of

Market advantage
substitute
Strong financial Yes No Yes No Temporary

capacity for its competitive
operation. advantage
Modernized and well Yes No No No Competitive

decorated Factory parity
Use of latest Yes No Yes No Competitive

technology. parity
Talent management Yes No Yes No Temporary

practice. competitive
advantage
Experienced & capable Yes No Yes No Temporary
workforce competitive
advantage
A strong corporate Yes No Yes No Temporary

culture competitive
advantage
Sustainable Yes Yes Yes No Competitive

Infrastructure for future advantage
Strong brand reputation Yes No Yes No Temporary

competitive
advantage
Patents & trademarks Yes Yes Yes Yes Sustainable

are very strong competitive
advantage.
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5.2.4 VRIO Analysis for Pacific Jeans Ltd.: Based on products

Is the product valuable?
- Yes
Is the product Rare?
- No
Is the product difficult to imitate?
- Yes
Is the product has substitute products?
- Yes
Based on the product features. The product has temporary competitive advantage.
5.2.5 SWOT analysis
A strategic planning technique used to help a person or organization to find out its
Strengths, Weaknesses, Opportunities and Threats related to business competition
or project planning. It is aimed at specifying the objectives of the business firm or
project and identify the internal and external factors that are favorable and
unfavorable to achieving those objectives.
SWOT analysis of the HR & Admin department of Pacific Jeans Ltd. in provided
bellow-
Figure 5.3 SWOT analysis for Pacific Jeans Ltd.
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Strengths:
1. Superior product quality: Pacific Jeans Ltd. is one of the best known in the
world in terms of product quality.
2. Good market reputation: Pacific Jean Group is one of those firms who are
reputed for its market reputation. All these years of non-controversial
operation made it one of the best.
3. Experienced management: The level of experience and expertise the
management level of this company has it phenomenal.
4. Strong bargaining power: no compromise on question of quality has provided
with a strong bargaining power against its buyers.
5. Functioning EMS System: The Company gives very importance to keep an
EMS system running which makes it efficient in employee management.
6. Strong Supply Chain Network: Maintaining a strong supply network provided
the company advantage in terms of pricing.
Weaknesses:
1. Lack of synergy: The department and the teams of the unit does not display
expected level of synergy in case of team work
2. Lack of coordination: The coordination among department in the same unit
does not seem significant.
3. Lack of skilled workers: Bangladesh as a whole suffers from works not
having any skills and in the case of Pacific Jeans Ltd. it is not any different.
4. Management conflict: The management level officials often disagree in
making a big decision.
5. Workers conflict: the units of the group contains more ten thousand workers
who are bound to involve in conflict.
6. Worker turnover: The units employ workers who are very volatile in terms
of financial and social condition which made the turnover rate higher.
Opportunities:
1. Growing demand of RMG: Clothing has a never-ending demand in the

market. Which the company can exploit as an opportunity.
2. Positive view of buyers: Having a good reputation in the market provides the
company with a positive view of buyers.
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3. Availability of modern technology: The modern era of technology has

revolutionized the way RMG business has been done.
4. Availability of new buyers: the growing population gave birth to a growing
demand for clothing.
5. Functioning EMS system: The effective usage of EMS system can provide
the company with a competitive advantage.
6. Abundance of govt. support: The government of Bangladesh has prioritized
the RMG sector above all other industries in the country.
Threats:
1. Competitive local market: Being an RMG oriented country the local

competition in the production has grown many folds.
2. Political unrest: Bangladesh has a natural pruning towards political unrest.
RMG sector is being hugely influenced by this.
3. New competitors: Being an open market economy made it easy for new
comers to enter the industry.
4. Quick obsolescence of technology: Improvement of technology is
happening in an exponential rate which makes technologies obsolete very
quickly.
5. Low price: Low price is a threat to company profit making. Company
profitability is highly influenced by the lower price of the clothing industry.
6. Competitive global market: The global market of RMG is more competitive
than ever before.
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CHAPTER SIX
ANALYSIS OF THE COMPANY
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In this report I have included information regarding the activities of value chain of
Pacific Jeans Ltd.
Figure 6.1 Value Chain
6.1 PRIMARY ACTIVITIES OF VALUE CHAIN OF PACIFIC

JEANS LTD.
6.1.1 Inbound logistics

Pacific Jeans Ltd. Collects fabrics and trims from different corner of the World. Most
of the time Pacific Jeans Ltd. imports fabrics from China, India, Korea and Pakistan.
All kinds of accessories, yarn / threads are imported from Hong Kong, India, Pakistan
and China as per buyers’ requirements. When buyer confirms an order, Merchandising
dept. books fabrics, accessories & all the other trims needed for that order by opening
back to back L/C against the Master L/C.
When fabrics, accessories and trims are arrived at the factory, store manager verifies
the materials against the delivery report or challan. Then fabrics, accessories and trims
are kept in the store department.
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Table 6.1 Inbound logistics of Pacific Jeans Ltd.
List of All Trims List of Accessories

• Sewing Thread Hanger
• Monofilament Thread
• Multifilament Thread
• Textured Thread
• Core spun Thread
Button Hangtag
Lace Pin/Clip
Elastic Backboard
Rivet Neck board
Lining Plastic staple
Interlining Paper Band
Stopper Elastic bag
Braid Polybag/ Mini polybag
Label -Main label -Size label -Care label Tag pin
Zipper Carton Sticker
• Nylon Zipper Safety sticker
• Metal Zipper Arrow sticker
• Plastic Zipper
Ribbon Collar stand

Hook & Loop Gum tape
Scotch tape
Both side tape
Twill tape Inner Carton
Outer carton
Velcro tape Iron seal
Wadding Tarpaulin paper

Shoulder pad Barcode
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6.1.2 Operations
Sample production is the first step of the operations. Sample department produce
sample as per buyer’s instructions. Before going to bulk production, sample is sent to
the buyer for approval. If buyer approve the sample, bulk production will be started.
Cutting department collect fabrics from store and cut the fabrics according to the
instructions of production manager. After cutting the fabric, layers are sorted size-wise
and color-wise. Each ply is numbered using stickers.
Sewing department received the cutting parts from the cutting department. All the
cutting parts should be distributed to the operator and helper after receiving those from
cutting department. By joining all the parts, a complete garment has to make here
individually. In this section, all the output garments are checked finally by maintaining
one by one method to provide fault free garments into the finishing department.
Finishing room is the last steps of garment manufacturing. After making complete
stitched garments by sewing section, these are passed in finishing department for
quality checking, ironing, folding, poly packing, cartoning to get attractive appearance.
• Sample department of pacific jeans ltd.
Sample department of Pacific Jeans Ltd. plays a significant role to achieve a garment
export order for the factory.
Sequence of Sample Making
Received tech pack from the buyer

↓
Pattern making
↓
Fabric cutting
↓
Print or embroidery (if required)
↓
Sewing
↓
Finishing
↓
QC check
↓
Send to the buyer for approval
Sample making process:

1. Received tech pack from the buyer
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It is the first step of a garment export order. Here merchandiser receives all the tech
pack from the buyer, where tech pack contains all the require information about the
garments order such as reference sample, measurement chart, print instruction,
embroidery instruction, wash instruction etc.
2.Pattern making
Here sample pattern has to develop according to tech pack (measurement chart)
provided by the buyer.
3.Fabric cutting
After developing sample garments pattern, fabric has to cut here by following the
pattern. It’s a very important section to approve the sample in the very first shot.
4.Print or embroidery (if required)
If tech pack contains print or embroidery instructions then those should be completed
in the cutting fabrics according to the tech pack.
5.Sewing
Sewing is another important section to approve the sample by the buyer in the very
shot. Here, garments are sewn according to measurement chart. It should be noted that,
during sewing extra care should be taken to make fault free sample garment.
6.Finishing
Ironing or pressing has done in the garments here according to the measurement chart.
7.QC check
After completing all the above processes, quality controller inspects the sample garment
here by following the tech pack which is provided by the buyer. if arise any problem
here then sample garment sent to the required section for making fault free garment.
8.Send to the buyer for approval
After checking the sample garment by the quality controller (QC), garment sent to the
buyer for approval. If it’s approved by the buyer then merchandiser can start the next
processes for the garments production.
Types of sample & their uses:
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Table 6.2 Types of sample & their uses
Serial no. Sample Use

01 Proto/ Development To convert the pattern into actual garment.
Sample
02 Size set/ Grade/ Fitting To fit the styling of the garment.
Sample
03 Seal Sample To gain approval before the
bulk Production.
04 Pre-Production (PP) To gain approval before the
sample bulk Production.
05 Production Sample To gain approval for shipping the
garment.
06 Sales Man Sample (SMS) To gain approval for bulk production
07 Rack Sample To show the garment on the rack.
Sampling is one of the main processes in Garment Industry and it has a vital role in
attracting buyers. Because the buyers generally place the order after they are satisfied
with the quality of the samples.
• Cutting department of pacific jeans ltd.

The cutting department of Pacific Jeans Ltd. is responsible for cutting fabrics and
feeding the sewing department with cuttings. The cutting department’s capacity is
planned based on the daily feeding requirement of the sewing lines.
Working procedure of the Cutting Department of Pacific Jeans Ltd.

1. Take fabric from the fabric store:
The cutting department gets a cut order from the production manager. According to the
cutting plan, the cutting in-charge generates a fabric requirement sheet or requisition
slip to the fabric store to issue fabrics.
2. Relaxation of fabrics:
Knitted fabrics require relaxation before cutting. After receiving the fabric from the
fabric store, the cutting department opens the fabric from the fabric roll and lays it on
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the table for relaxation for some hours before cutting. Factories also relax fabric in the
fabric store overnight after opening the fabric rolls.
3. Cut order planning:
The cutting master plans the number of markers they need to prepare, the size
combination to be set for each marker and the number of plies to be laid in each marker.
4. Fabric Spreading/ layering:
In mass production, multiple layers of fabric are cut at the same time. So, spreaders lay
the fabric on a cutting table as per total marker length. The layer height is kept up to a
certain inch.
5. Planning markers:
The cutting master plans marker ways, marker lengths and the numbers of plies to be
laid in each lay
6. Making markers:
This is a process of making an outline of garment patterns on the lay for cutting garment
components. After layering, the marker paper is laid on the top of the layer.
7. Cutting fabrics:
After making the marker, garment patterns are cut and taken out from the layer. Various
technologies are used for cutting fabric layers, such as straight knife cutting, band knife
machine cutting and a computer-controlled automatic cutting machine.
8. Sorting, bundling and numbering of garment plies (parts):
After cutting the fabric, layers are sorted size-wise and color-wise. Each ply is
numbered using stickers. Bundles are kept on inventory tables, before these are sent to
undergo the next process.
9. Inspecting cut components:
To maintain the cutting quality, standard cutting components are checked randomly by
quality checkers. If defective components are found, they replace those defective parts.
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10. Sorting printed and embroidery panels:
As per order requirements, printing and embroidery is done on cut panels. Size-wise
sorting is done after receiving printed and embroidered panels. The checking of printed
and embroidered panels is also done by the cutting department.
11. Re-cutting panels:
Re-cutting is done for garment components that require to be replaced in bundles. Re-
cutting requests are received from the sewing department for defective garment parts.
Re-cutting is also done for block panels cut for the printing and embroidery processes.
After receiving garment panels from the printer or embroiderer, these panels are
reshaped.
12. Fusing garment components:
Fusing in garment components is done to stiffen parts of a garment. If needed, fusing

is done at the cutting section (e.g. fusing of the collar and cuff components of formal
shirts).
• Sewing department of pacific jeans ltd.

Sewing section Pacific Jeans Ltd. is the main department for garments manufacturing.
When all the garments are complete to cut in the cutting section, all of these cutting
parts are sending to sewing department for making garment. In this section different
cutting parts are joining together with the help of different types of sewing machine,
threads and needle.
Working process of the Sewing Department of Pacific Jeans Ltd:

Product analysis
↓
Set up target for production
↓
Set up machine layout on the basis of target
↓
Set up operator layout on the basis of target
↓
QC check of product
↓
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Line balancing
↓
Line setup
↓
Distribution all the processes
↓
Cutting parts received section
↓
Cutting parts distribution to the operator and helper
↓
Complete parts making individually
↓
On line QC check
↓
Online quality audit
↓
Counting output and checking with the target
↓
Final quality check (for each Garment)
Working Process of Sewing Department is discussed in the below:
Table 6.3 Working Process of Sewing Department
S/L Process Job

01 Product analysis In which way, a product has to sew, it’s
decided here.
02 Set up target for production Have to set a target for production on the basis
of shipping schedule.
03 Set up machine layout Have to prepare machine setup layout on the
on the basis of target basis of daily target quantity.
04 Set up operator layout on the Prepare operator layout setup on the basis of
basis of target machine quantity.
05 QC check of product Each garment must have to fulfill its right
quality. So, product checking must be needed
by QC.
06 Line balancing Line balancing is a tool used for production
line to capacitate the flow line of production.
07 Line setup Line setup must be needed to achieve healthy
production.
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08 Distribution all the processes All the processes of sewing must be distributed
to the right person to avoid the damage of
garments.
09 Cutting parts received A section, which received the cutting parts
section from the cutting department.
10 Cutting parts distribution to the All the cutting parts should be distributed to
operator and helper the operator and helper after receiving those
from cutting department.
11 Complete parts making By joining all the parts, a complete garment
individually has to make here individually.
12 On Line QC check During running of garments sewing, On Line
QC check must be needed to make fault free
garments.
13 Online quality audit An online quality audit must be needed here to
show the buyer actual fault free product
making
process.
14 Counting output and checking Comparing with target quantity, all the output
with the target garments should be counted here to make sure
achieving the target quantity.
15 Final quality check In this section, all the output garments are
(for each Garment) checked finally by maintaining one by one
method to provide fault free garments into the
finishing department.
• Finishing department of pacific jeans ltd.

Finishing room is the last steps of Pacific Jeans Ltd. and there assembling the operation
are performed. After making complete stitched garments by sewing section, these are
passed in finishing department for ironing, folding, poly packing, cartoning to get
attractive appearance. All types of garments finishing activities are done here.
Working process of the Finishing Department of Pacific Jeans Ltd.:
Received sewn garments from sewing room

↓
Initial quality check
↓
Washing
↓
Button attached
↓
Tread trimming
↓
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Ironing/pressing (inside)
↓
Quality inspection (inside) process wise
↓
Ironing / pressing (outside)
↓
Quality inspection (outside) process wise
↓
Re-pressing
↓
Inspection overall (out looks)
↓
Accessories attached
↓
Folding
↓
Shade sorting
↓
Poly packing
↓
Quality audit
↓
Prepare a packing list
↓
Assorting
↓
Carton pack
↓
Final inspection
↓
Record the documents
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Working process of Finishing department are discussed below:

1. Received sewn garments from sewing room:
Here, sewn garments are received from sewing department for finishing the products.
2. Initial quality check:
Here stitched garments are initially checked by the quality controller. If their found any
repairable or washable defects then garments need repair works in finishing section.
But if found any major sewing defects, fabrics faults then send to the sewing department
for correction.
3. Washing
For wash garments, 100% check is required after receiving the garments from the
sewing department. Defective garments should be rectified and reject products should
be sorted out. If there are any fault like oil marks, stains, other dust and spots then
garment washing must be needed. Some spots are removed by using spot remover and
dust and stains are removed by using machine wash inside the finishing section.
4. Button attached:
Button, button holes, snap button, eyelets are attached on garment in finishing section.
5. Tread trimming:
Garment uncut treads are trimmed by helper in finishing section. Otherwise it creates
major or minor defects in garment.
6. Ironing/pressing (inside):
To remove unwanted wrinkles or crease mark, garments are pressed by using steam
iron. Vacuum tables are used for garment ironing.
7. Quality inspection (inside) process wise:
After complete the inside ironing then inspect the quality of garments.
8. Ironing/pressing (outside):
If the inside garments quality inspection is done then it passes for outside pressing.
9. Quality inspection (outside) process wise:

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Check the outside garments quality like measurement, placement of collar etc.
10. Re-pressing:
When all the quality (like inside and outside) inspection is complete then garments are
placed for re-pressing.
11. Inspection overall (outlook):
Here, quality inspector ensures the overall out looks of garments.
12. Accessories attached:
All kinds of garments accessories like hang tag, price tag, barcode etc. are attached
here.
13. Folding
Garments are folded here as per buyer’s instruction.
14. Shade sorting:
Quality inspector checks the color shade sorting on garments. They calculate a shade
number for each sample based on how close its color shade compared to the standard.
15. Poly packing:
After folding and color shade sorting garments are poly packed here as per buyer
requirements.
16. Quality audit:
Quality audit can be performed in the sewing section as well as in the finishing section.
Effective quality control help to achieve the quality target. Quality audit is done prior
to final inspection.
17. Prepare a packing list:
In this stage, finishing in-charge prepare packing list for cartoning and garment
shipment also. After preparing packing list finishing department inform the
merchandiser.
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18. Assorting:
Before cartoning, finishing in-charge must confirm and follow the color and size wise
assorting system.
19. Carton pack:
Here all the garments should be packed in cartons to send the products safely to the
buyer.
20. Final inspection:
If all the above process is perfectly done then Factory top management, merchandiser,
production manager, QC, finishing inspector and buyer’s representative inspects the
products finally before the shipment.
21. Record the documents:
All details documents from production to shipment must be recorded properly.
6.1.3 Outbound Logistics

After final inspection, goods are arranged for shipment. The merchandiser or the
commercial department will decide on the mode of transportation as per the terms and
conditions of the order and if it is sea, then they will decide the container (LCL – Less
container load or FCL – Full container load) based on the type of goods and book the
carrier. They may use clearing and forwarding agents to arrange for transport. If it is
air transport, then the concerned air carrier will be contacted to transport the goods.
Necessary documents required for export customs clearance are prepared and sent to
the customs department. Once required approval is obtained from customs, the material
is transported to the port. The port authorities will provide bill of lading in case of sea
shipment and air way bill number (AWB) in the case of air shipment.
6.1.4 Marketing and Sales
Merchandiser sourcing foreign buyers and collecting order. Based on the buyer’s
enquiry, quotation with or without samples will be sent to the buyer as per his
requirement. Negotiations will be done with respect to the pricing, terms of payment
and terms of delivery. Once buyer confirms the pricing, terms of payment and terms of
delivery, the merchandiser and his team will send a proforma invoice to the buyer
stating their commitment of sale.
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Pacific Jeans Ltd. is a basically a garment manufacturing company. It produces

mainly jeans pants & trousers. The contribution of garments sectors towards the total
export is a great percentage of this company.
Marketing Department:
Pacific Jeans Ltd. attaches much importance to its marketing tasks for which the
Managing Director himself takes personal interest. The marketing department is
responsible for sales, distribution, market research and handling marketing of
individual products. The total manpower engaged in the marketing department is only
20-40 persons.
Target Market
In Pacific Jeans Ltd, there target market is especially for foreign market. They are
marketing their products to USA, European countries, Canada, Brazil, Germany,
Netherlands etc.
Market Structure
It is a production-oriented manufacturing concern. The nature of production is garments
wear and it produces the consumer goods. Pacific Jeans is 100% export oriented and it
produces for foreign market. The organization’s close competitors are India, Pakistan,
China, and Hong Kong.
Package
The company feels that packaging is more important task to protest the freshness of
their products. The company always conscious on their product, and so that package is
more attractive which attraction to the customer and also describe the product
application.
Pacific Jeans Ltd have been realizing at the long period, the power of good packaging
to create instant customer/buyer recognition of the company or brand .In this regard the
company, before the final packaging to check properly on product defaults, if any
defaults find out and instant to attention concern and rejection of that product.
After checking at first to pack on individual poly bag and wrapper on the carton, which
is printed by board paper?
Marketing of product
Marketing of quality product is the main function of the company. Therefore, there are
no difficulties in case of marketing new product. In shipping there is no problem, only
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port and custom problem is not well satisfied about their market demand. There are no
traditional promotional activities in this manufacturing organization. Because there is a
100% export volume in this organization.
Transportation
Transportation is a necessary function of marketing because most of the markets are
geographically separated from the area of production. On the basis of products to
require the various types of mode of transports to the place of consumption. In this
context the company likes the sea, air and land transportation to carry on their products.
On the above conditions to depend on urgency need which use to the company
requirement. But the company normally prepared on the sea transportation because it
contains on large volume of product at a time. Frequently, the transportation cost would
be minimized. The company has an own transport department and have cargo carrier.
The air transportation use only for urgency met the customer demand. Sometimes, this
air transportation is used for emergency treatment of any top-level executive or their
family members.
Advertisement
This company does not follow any advertisement strategy for creating market demand.
Pacific Jeans Ltd always tries to maintain the product quality. This is their only
promotional activity for attracting the foreign buyers. Because this company is
completely different from any other type of production-oriented company in regard of
buyer attractiveness, buyer convince and getting order from buyer. As a result, in most
of the times, the company get the order from world reputed branded products.
Sales Target
The company have sales target only for international market. PACIFIC JEANS Ltd
follows the research and development program for developing their sales volume or
product quality.
In Pacific Jeans Ltd, there is a sales center, but do not follow the traditional price
discount system even not provide after sales service. There are some sorts of samples
for foreign buyers in this sales center. Besides this, there is only the particular target for
delivering timely the quality products to the enlisted foreign buyers.
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6.2 SUPPORT ACTIVITIES OF VALUE CHAIN OF PACIFIC

JEANS LTD.
6.2.1 Human resource management of Pacific Jeans ltd.

In my visit I know that there is a separate HRD or personnel department in the company.
There are about 3 Human Resource Managers in Pacific Jeans Ltd. The basic Organ
gram of the Human Resource Department is as follows:
GENERAL MANAGER
MANAGER MANAGER MANAGER
(SEC-1) (SEC-2) (SEC-3)
Figure 6.2 Basic organgram of the human resource department of Pacific Jeans Ltd.
Roles of HR department:
• Maintain Liaison with the Administrative Manager.

• Grievances handling of the workers.
• Undertaking training programs for skill development.
• Counseling the rights and responsibilities among the workers.
• Conducting motivational programs.
• Taking care of in-house cleanliness, health and safety.
• Ethical issues and codes of conduct etc.
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The Main areas of Human Resource Management are discussed below:
There is an organized manpower policy in this type of production- oriented company.

This policy includes manpower planning, salary and wages administration, recruitment
and selection, training, performance appraisal, motivation, promotion/demotion,
employee morale, industrial relations, etc.
Manpower Planning
We know that the starting point in attracting qualified human resource is planning. HR
planning, in turn, involves job analysis and forecasting the demand and supply of labor.
Basically, the personnel manager is responsible for manpower planning, but before
taking any decision he consults with line managers.
In fact, Manpower planning is the process by which an organization can engage the
right number of people for the right job at the right time
Number of Worker: 10500 (casual 700)

Male worker: 45%
Female worker: 55%
TYPE number
Technical 6945
Non- technical 2855
Permanent 90%
Casual 10%
Number of officers: 627

Technical: 345
Non-technical: 282
Employee Recruitment and Selection
In most of the organizations, the human resources are properly viewed as their most
important assets. For employee recruitment and selections, the company consider
following factors to formulate principle:
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• Needs of employee for present and future

• Opportunities of collection and selection.
• Economic conditions
• Goals
• Organizational style
• Nature of the tasks
Departmental manager who decides that he needs to add to his staff or to replace
someone who is leaving the organization customarily initiates the process of searching
for a new employee. Commonly he makes a written request to the personnel department
stating that he wishes to hire someone to fill a specific vacancy. The position to be filled
is defined in terms of its job description and of its job specification (human
qualifications). The hiring activity should be integrated with the human resources plans
of the company.
Recruitment
Recruitment is a process to find out quality people for the organization. It is directly
related to a number of personnel or human resource activities are as follows:
Employment planning → Recruiting → providing → Job application → selection
The various types of recruitment procedures are as follows:
• Internal source
• Advertisements
• Employee referrals
• Private employment agencies
• School placement
In my practical findings, Pacific Jeans Ltd. follows the internal sources and advertising
procedures to recruit the people.
And for recruiting employees through advertising, the company follows the daily
newspaper, Internet and others. The company also collects the applications from
applicants by post or courier service and others.
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The personnel recruitment process:
Human Resource Planning
Alternatives to Recruitment
Personnel Recruitment
Internal sources External sources
Internal Method External Method
Recruited
Individual
Figure 6.3 The personnel recruitment process of Pacific Jeans Ltd.
Selection Procedure
After recruitment, the company maintains selection procedure. Pacific Jeans Ltd. makes
a short list of applicants from among all before selection test. This type of short list is
prepared as qualification and experience. There are various types of selection test for
employee selection. These are:
• Written (subjective type) test,

• Written (objective type) test,
• Oral test
• Medical test
• Others
Pacific Jeans Ltd. usually follows the written (subjective type) test; oral test and
medical test for employee selection but this selection procedure can vary person to
person. Such that
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For worker: No written test is undertaken in selecting workers. Job experience is

considered as a vital factor.
For staff: Departmental manger gives instruction to HRM to attract fight people.
For Junior Manager/Brand Manager: As this is an entry-level/mid-level position in

management, Human resource department undertakes a series organization tests. All
the candidates are required to sit for written test. Written test, interview, physical test,
group performance test, physical examination is also undertaken. Then the potential
candidates are human resource Manager.
For Senior Manager: This post is filled up through promotion and hiring from other
manufacturing concerns.
Job Analysis
Job analysis is the process of studying and collecting information related to operation
and responsibilities for specific job. This is the primary and pre-condition before
recruiting and selecting a person. Pacific Jeans Ltd. follows job analysis before
employee recruitment.
Job description
Job description is an organized and factual statement of the duties and responsibilities
for a particular job. Pacific Jeans Ltd. follows job analysis, job specification and job
description for every job.
Job Specification
It is a statement of minimum acceptance of human qualities necessary to perform a job
properly. The company selects employees according to job specification.
Retained Quality People
Retaining the quality people in an organization is an important task for HRD. Every
organization wants to retain quality, experienced and efficient manpower to its
organization. The following strategies are followed to retain quality people:
1. Motivation
2. Promotion
3. Providing extra facilities
4. Training and
5. Others.
Pacific Jeans Ltd. provides promotion and extra benefits to retain quality people to the
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organization. There are basically two types of benefits provided by the company. These
are:
(i) Financial benefits
(ii) Non-financial benefits
(i) Financial Benefits: Financial benefits are as follows:
a. Salary
b. Bonus
c. Incentives
d. Group insurance
e. Food subsidies
(ii) Non-financial Benefits: Non-financial benefits are as follows:
a. Communications/transport
b. Free medical services
c. Entertainment
d. Others
Promotion/Demotion
The most important policy question in promotion is the relative significance of seniority
and competence. In recent times potentiality and competency are considered as most
important basis for promotion. Though there is an increasing pressure and tendency, to
give more weight to seniority in making promotions, because of the great importance
that worker attaches to length of service. Pacific Jeans Ltd. considers the followings as
the basis for promotion.
• Seniority
• Experience
• Performance
• Academic Qualification
Like public concerns, they do not have any system of demotion. HRM urged that the
incompetent employee has to be trained.
Training and Development

For increasing the knowledge, skill and improvement of competency of employees both
in-house and out-door system are followed. There are some training methods for
developing employees. They are:
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• On the job training,

• Apprenticeship method,
• Lecture and conference method,
• Sensitivity training,
• Vestibule training
Pacific Jeans Ltd. follows on the job training.
It means informing the trainees about the nature of work, conditions, and environment
within a short period of time. The company has a separate training department in which
a continuing training system is maintained. Employees are also sending to train up in
foreign country.
Wage and Salary Administration

Personnel department has its own policy for salary and wage administration. There are
some bases for setting pay. These are as follows:
a. Seniority
b. Experience
c. Performance
d. Position
e. Geographical distance
f. Academic qualification
g. Personal relation
h. Others
Average Pay Scale per Month for employee’s US$50.00. The minimum wages for
worker are BDT 2100.00. Pacific Jeans provide two Eid bonuses to employees and
workers.
Motivation
Motivation can be defined as the process that account for an individual’s intensity,
direction, and persistence of effort toward attaining a goal. The three key elements in
this definition are important.
In motivating the employees, the HR department of Pacific Jeans Ltd. has introduced
financial incentives, increment, profit sharing, job security. Pacific Jeans Ltd. follows
the two-factor theory of motivation.
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Intrinsic factors or Motivational factor which is related to job satisfaction such as

recognition, growth, advancement, work itself and achievement etc.
Extrinsic factors are associated with dissatisfaction such as company policy,
administration, supervisions and salaries.
If extrinsic or hygiene factors are available than employees will not be dissatisfied, it
does not mean that employees are satisfied. Because, these are very common factors
and exist in every organization.
Pacific Jeans Ltd motivates their employees through some facilities. These are:
a. Handsome basic pay

b. Increment in basic pay
c. Job security
d. Job status
e. Good behavior
Performance Appraisal
Performance appraisal is a process for evaluating the past performance of an employee
by his supervising officer who is conversant with the employees’ job performance.
There are two types of performance appraisals.
1. Traditional performance appraisal

2. Result oriented performance appraisal
In Pacific Jeans, result oriented performance appraisal is followed. There is a
continuous evaluation system for performance appraisal. The company has professional
appraisers to evaluate the performance.
For evaluating performance, this company uses an appraisal form to be filled by

nominee’s associates and superior.
Job Rotation
Pacific Jeans Ltd. follows job rotation strongly when employees feel fatigue and
monotony because of continuation of job. It indicates change the job for sometimes in
order to minimize fatigue and monotony of particular employees.
Interpersonal Relationship
In Pacific Jeans there is a good management-worker relationship. The company always
tries to maintain good interpersonal relationship of employees. It improves employee
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morality and organization’s citizenship. The company improves their interpersonal

relationship through attending party, meeting, counseling, annual picnic and official
festival.
Participative Decision-making
Participative decision-making is one of the core concepts of industrial democracy.
Industrial democracy is the modern global world phenomenon.
Pacific Jeans take participative decision making, but do not encourage CBA. Their
workers are well satisfied and do not want CBA. Although they do not encourage CBA
but take participative decision.
Labor turnover
Labor turnover of company is 2-3%. There are various effects of labor turnover. These
are:
• Deceases of team spirit.
• Increasing the training cost
• Increasing the administrating expenses.
• Difficulty of optimum use of machinery.
Pacific Jeans also face problem in case of labor turnover. But there is only 10% labor
turnover in previous 5 years due to the employee’s personal interest.
To reduce the employee turnover the company gives the promotion and increases the
salary.
Industrial disputes
There are various forms of industrial disputes like:
1. Strike
2. Sit-down
3. Lock-out
4. Go slow, etc.
In Pacific Jeans, there is no industrial disputes and conflicting situation.
Industrial relations
Industrial relation occurs within dynamic conflict situation. Which is permanent and
unalterable so long as the structure of society of the social remains unaltered. Pacific
Jeans follow the industrial relation ordinance of 1969 properly. The existence
relationship between labor and management is good. The management tries to develop
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the relation with the labors. There are no trade union activities in the organization. The
worker welfare committee discussed with BGMEA to solve the any problem.
The company also emphasizes on the following factors to develop industrial relation
• Payment the proper wages within due time.

• Ensure better working condition.
• Arrangement training facilities.
• Ensuring participatory management.
6.2.2 Technology development of pacific jeans ltd.
Information technology is a very crucial and important sector for all organization. In
the view point of today’s complex business world an organization cannot survive
without the help of information technology. Pacific Jeans Ltd. also has separate
information technology.
Pacific Jeans Ltd. is fully resourceful about information technology. A short description
about their capability of information technology is given below:
1) 30 computers for IT department where all records of the company are kept.
2) 12 IT specialist to maintain all the work of this department.
3) 18 computer literate officers to use the computer.
4) Own centrally located server, which coordinate all the computers.
5) All the computers are equipped with Internet facility
Pacific Jeans Ltd. use customized software for their IT department. This company uses
their IT facility:
1) For payroll.
2) To keep the accounts for all departments.
3) To get the latest data about garments sector.
4) To communicate with buyers.
5) To keep the record of Accounts and Finance departments.
6) To get orders and send price catalogue to the buyers by e-mail.
6.3 RESEARCHES AND DEVELOPMENT DIVISION
Pacific Jeans has a separate R&D department for continuous development of product
and quality which is controlled by Head office. This department works for the
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development of new products and new methods. There are four expert personnel
employed in this department who came from Srilanka. Experience leads them to invent
the new products and new method of production. R&D department always engage in
the development of new model/version regularly with customer driven initiative. In
today’s economic recession, company also tries to maintain the product quality.
Company also conducts research work for new product development. Company has
already achieved some international certificate for its product quality. GAP, BSCI,
CAN certificates are their major achievements that are internationally recognized. But
company observed that the cost of conducting research and development activity in
Bangladesh is very costly. Though R&D department consume a huge portion of money,
it can innovate a new technique that can increase the efficiency of the workers and the
company also can operate much more effective way.
6.4 FINANCIAL MANAGEMENT OF PACIFIC JEANS LTD.
The financial management is the custodian of the finance of the organization. The
department keeps all records of the payment and earnings, operating company’s
account with the bank, arrange funds as per requirement and deals with income tax for
the tax matter of the company. This department is responsible for maintaining proper
account of the company’s property and maintaining liaison with the owner for the
financial matters regularly. The key elements of financial management of Pacific Jeans
Ltd. Are discussed below:
Capital and Capital Structure

The main source of capital is the directors’ investment in the company. The capital
structure normally follows paid up capital.
Companies authorized capital : Taka 1,00,00,000.00 (One Crore)
Companies Paid Up Capital : Taka 30,00,000.00 (Thirty Lac)
But in my practical findings, the company does not provide any type of financial
statement due to their business secrecy.
Market Share
Pacific Jeans Ltd. does not enter share market. Therefore, the company has no market
share. It is a private limited business entity.
Short term and Long-term Financing
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lOMoARcPSD|34116882
Most of the firm use short term financing to meet temporarily short falls, while
permanent capital (long term debt and equity) is used to meet long-term capital
requirement. There are four basic sources of short-term financing.
• Account payable
• Bank loan
• Commercial paper
• Accruals
Pacific Jeans Ltd. provides short-term finance from company’s own sources. Long term
finance provides by directors and banks. The company has no problems of internal
financing. Bank Name:
• The Hong Kong and Shanghai Banking Corp. Ltd.
• Credit Agricole Indosuez
• Agrani Bank
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lOMoARcPSD|34116882
CHAPTER SEVEN
PROBLEM IDENTIFICATION
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lOMoARcPSD|34116882
7.1 PROBLEMS NEED TO BE DEALT WITH
According to the above observations we like to draw the following problems in

Pacific Jeans Ltd. for recommended solutions,
1. The organization does not have adequate promotional programs for its product.
2. it faces a wide spectrum of diverse marketing barriers including lack of marketer
competency.
3. There is no child care center for female worker.
4. There is no provident fund for employees and workers.
5. The software application and information strategy are limited due to semi-
skilled operators.
6. Most of its labors have limited whereabouts of the updated machineries and
their usages.
7. The organization is too much dependent on its current suppliers for their raw
materials and packaging.
8. For the lack of production capacities, the organization fail to place the shipment
of merchandise in due time.
9. The processing of the finale products suffers from the shortage of space in
inventory before Christmas season.
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lOMoARcPSD|34116882
CHAPTER EIGHT
RECOMMENDATIONS &
CONCLUSIONS
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lOMoARcPSD|34116882
8.1 RECOMMENDATION FOR IMPROVEMENT
On the basis of findings of the study, I would like to recommend the followings for
the problems in Pacific Jeans Ltd,
1. The organization should build a special branding team with the presence of
expert for promoting their product in their target countries.
2. It should get a number of marketing experts to help them in their issues in
marketing and emphasis on the more updated concept of marketing such as
digital marketing.
3. For its female workers, it should build a properly fashioned and facilitated
child care centre with skilled babysitter and certified paediatrician.
4. As the govt of Bangladesh is establishing mass provident fund system, the
organization can get affiliated with this and can maintain a provident fund.
5. It should hire some IT experts who can operate the software application and
information system as well as conduct training session for other semi-skilled
employees.
6. Training program on the usages and maintenance of the machineries should be
organized regular basis for the labours.
7. It should expand its network of suppliers who can supply quality raw materials
with less money.
8. It should invest more on the expansion of its production facilities with
appropriate production capacity.
9. It should develop a more sophisticated inventory system and invest
accordingly.
8.2 CONCLUSION
At last, I can say that the management portion of all departments of Pacific Jeans Ltd.
is performing its job efficiently. In fact, the all departments are most important
equally to increase the productivity by low cost and to maintain the well reputation.
Beside the executives are very industrious and serious in performing their jobs.
Though there are also some who are not much committed. The executives hardly try
to achieve 90% efficiency.
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lOMoARcPSD|34116882
The organization is maintaining a high-quality work environment in accordance with

the labor Act of Bangladesh. Workers get adequate wages and they get their wages
timely. So, the workers are satisfied and there is no industrial dispute or labor unrest.
If the Company follows the recommendations made in this report, I believe that it can
overcome the present problem. And in the long run the company will be benefited and
it may become the market leader in near future.
There is no doubt that Pacific Jeans has created a good reputation in the market by its
quality product and service. It should maintain the quality and try to diverse its
business.
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lOMoARcPSD|34116882
References
APPAREL MERCHANDISING BLOG. (n.d.). Retrieved from GOLDNFIBER:

https://www.goldnfiber.com/2016/11/pacific-jeans-a-trusted-name-in-jeans-
mechanism.html
apparelresources. (2017). Retrieved from Apparel Resources:
https://bd.apparelresources.com/business-news/sourcing/pacific-jeans-the-
pioneer-and-trendsetter-in-bangladesh-denim-industry/
Export performance. (2018). Retrieved from BGMEA:
https://www.bgmea.com.bd/page/Export_Performance
Pacific Jeans. (n.d.). Retrieved from Pacific Jeans: https://www.pacificjeans.com/
The Heritage Foundation. (2022). Retrieved from https://www.heritage.org:
https://www.heritage.org/index/country/bangladesh
TRADE INFORMATION. (2018). Retrieved from BGMEA:
https://www.bgmea.com.bd/export-performances/4
trading economics. (2019). Retrieved from trading economics:
https://tradingeconomics.com/bangladesh/indicators
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Company Analysis on Pacific Jeans Ltd.

Career Management (University of Chittagong)

Studocu is not sponsored or endorsed by any college or university

PROJECT REPORT ON COMPANY ANALYSIS AND

HUMAN RESOURCE MANAGEMENT

Date of Submission: March 10, 2022

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10th March, 2022

Department of Human Resource Management

Chattogram, Bangladesh 4331.

Subject: Submission of MBA Project Report.

Department of Human Resource Management

Chattogram, Bangladesh 4331.

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Department of Human Resource Management

Chattogram, Bangladesh 4331.

Downloaded by Keya Biswas (keyabiswas541@gmail.com)

As part of my MBA program, I have completed my project on Pacific Jeans LTD.

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4.1.5 Threat of Substitutes for Pacific Jeans Ltd. ............................................................ 28

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Table 2.1 Board of Directors of Pacific Jeans Group. ................................................. 11

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1.2 RATIONAL OF THE STUDY

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1.3 OBJECTIVES OF INDUSTRY REPORT

• To know about the contribution of RMG sector in the economy of Bangladesh

• To analyze environmental factors of Pacific Jeans Ltd. by using PESTEL,

• To analyze various functional departments of Pacific Jeans Ltd. by assessing its

1.4 RESEARCH METHODS

a. Interview – Direct interview method was used to collect information for

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c. Discussion with various officers and workers.

1.5 LIMITATION OF THE STUDY

• The company’s policies barred it from sharing the level of information

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2.1 COMPANY OVERVIEW

2.2 HISTORICAL BACKGROUND

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2.3 UNITS OF PACIFIC JEANS GROUP

At present, Pacific Jeans Group comprises of five main business units:

Pacific Jeans LTD

Pacific Accessories Limited Jeans 2000 Limited

Universal Jeans Limited NHT Fashions Limited

Figure 2.1 Units of Pacific Jeans Group (Pacific Jeans, n.d.)

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2.4 FACTORY INFORMATION OF PJL

Location of Pacific Jeans Ltd : Plot # 9-11, Sector # 6/A, CEPZ,

Total manpower : 9500

2.5 VISION, MISSION & VALUE STATEMENTS

Mission: Be a Global Life wear Solution Company

2.6 BUYERS OF PJL

Figure 2.2 Products of PJL (Pacific Jeans, n.d.)

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2.7 PRODUCTS OF PJL

Man’s Trousers Ladies Trousers kids

• Denim • Long Denim • Kids wear