Business Strategy and Planning

Group Members
Ayesha khalid
Shawaal Ahmed
Khuda Yar Zafar
M .Mohid
Swot Analysis of Kohinoor Mills
Strengths
 1. They have composite unit, which helps them reduce cost. As they make finished goods from
raw cotton.
 2. Have a lot experience in the industry which helps them deal with upcoming obstacles via past
experience.
 3. They have latest machinery in their units, which help them with efficiency and effectiveness.
 4. They have built a brand image which helps them in their tough time as customers buy their
name.
 5. Having own electricity plan.
 6. ERP Software.
 8. Market reputation.
 9. Skilled and trained management and employees.
 10. Excellent customer service.
 11. Large market share.
Weakness

 Every booked order is delivered lately.

 Administrative Expenses.
 Reliability on Foreign Customers.
 Team Building
 Too many departments to handle
 Low productivity
 Research & development
Threats
 Right now due to COVID 19 and lockdown in Europe it is a big threat as they have high% to
export which is going too effected badly.
 As $ to Pakistani rupee value fluctuates they can bear a loss on their imports and exports.
 As Bangladesh, china, Vietnam, turkey and India are Pakistan’s international competitors, they
compete Pakistani mills product on rates as they have a lesser cost/unit so they can beat us at
rates , this affects Kohinoor mills too as they sell almost 85% in exports.
 Their public image can be destroyed by pressure groups, as their production is not environment
friendly.
 Political instability
 The cotton textile industry of the country is thus facing both short-term and long-term
problems. Former includes problems of high prices, shortage of raw materials, liquidity
problems due to poor sales and accumulation of huge stocks due to poor demand in the
market.
 Pakistan is facing high cost of production due to several factors like the hike in electricity
tariff, the increase in interest rate, energy crisis, devaluation of Pakistani rupee, increasing
cost of inputs, political instability, removal of subsidy & internal dispute.
 Rapid changes and developments in technology have increased the competition. The machinery
used by the industries in Pakistan is obsolete and outdated. Government fails to provide the
funds and loans to the owner of Kohinoor hence they cannot install new machinery, which can
perform tasks in an easier way
Opportunities
 They can sell their electricity to other surrounding industrial Area
 New Technology
 Projects for the local market
 They can diversify their business by introducing a brand with end product.
(Stitched clothes) hence maximizing profit and they can introduce online
stores.
 They already diversified their business by investing in Honda motors at Multan
road, they can invest in other businesses likewise.
 As CPEC is established they have an opportunity to expand their export and
share.
 Kohinoor mills has a composite unit of spinning and weaving but not of
finished products yet, so to maximize their profit they can start doing that as
wholesales made-up. They will get more return per kg.
Opportunities

 Population Growth- Population is growing rapidly in Pakistan. There is a gap

between the demand and supply of labor, which can be exploited to take
advantage of low labor costs. The labor is usually unskilled and amateurish
hence a significant amount of money and time has to be spent on their
training.
 They can start manufacturing for synthetic polymer because raw materials
and machinery is quite the same as fabrics.
 They can start a new fashion house by making and designing products by
hiring fashion designers from their outlets like Nishat Mills.