Professional Documents
Culture Documents
TABLE OF CONTENTS
Topic Executive Summary Textile Industry Introduction Mission and Vision Company Profile Business Operation SWOT Analysis PEST Analysis Industry Analysis Market Strategy Competitive Analysis Porter Five Forces Company Life Cycle BCG Matrix Competitive Advantage and Bench Marking Problems and Solutions
Internship Report On Sapphire Group
PAGE NUMBER 4 6 7 9 10 11 13 14 15 17 19 19 22 23 25 26
Page 2
28 29 30
Page 3
Executive Summary
Sapphire group is engaged in the business of yarn which is known as their main strength and they are also engaged in Fabric, Dairies Products, Solar Equipments and Power Generation etc. The system, the style of working & the commitment of the employees in Sapphire is really exemplary. Sapphire has always tried for success & that is why it is known to be one of the leading organizations in Pakistan. The basic purpose of this report is to describe my first experience in Sapphire Group of Company 7 A-K Main Boulevard Gulberg 2 Lahore, where I have joined as an internee in their Marketing department for the duration of 6 weeks. Well 6 weeks is a very small time period and it is very difficult to learn all marketing operations in this time in such a huge and expanding multi-national corporation like Sapphire Group but still I have learned much from the Sapphire Group which includes handling small transactions, to keep the customer in touch and much more. I have discussed about my learning in the whole internship that is all about the Textile Terminologies and process of the productions. I have made it possible to write each and every thing that I have learnt there. I have all my practical efforts in the form of this manuscript thats the asset for my future career.
Page 4
Mission Statement
Sapphire Group Of Pakistan The basic mission statement of Sapphire Group Of Company is to maintain the leading position in their business in order to remain one of the successful business entity in whole country than they focuses on maintaining their good business and ethics and wants to contribute in the development of the community in which they live and work.
Page 5
Background:
As I have not learned not much about the history of the company but I have learned that the basic concept of name Sapphire Group came from East Bengal by this family who than settled in Chiniot and started a first spinning plant in Pakistan in 1969 and than with time it became the one of the largest yarn producing companies in Pakistan, as they say that they build this large business empire of 22 units from a one single unit.
Sapphires Introduction
Introduction of Company:
Sapphire Textile Mills Limited (the Company) was incorporated in Pakistan on March 11, 1969 as a public limited under the Companies Act, 1913 (Now the Companies Ordinance, 1984). The shares of the Company are listed on Karachi Stock Exchange. The registered office of the Company is situated at 212, Cotton Exchange Building, I.I. Chundrigar Road, Karachi and its mills are located at Kotri, Nooriabad, Chunian, Feroze Watwan, Bhai Pheru and Bhopattain Lahore. The Company is principally engaged in manufacturing and sale of yarn, fabric, home textile products and energy sales.
Company annual turnover is about 220 million U.S. Dollars, and has employed 12000 employees in different manufacturing units. We have 11 spinning units, 2 woven fabric units, 1 knitted fabric unit 1 dyeing unit each of woven fabric, knitted fabric, yarn, fiber dyeing, 1 stitching unit and 1 home textile unit. Sapphire Textile Mills Limited is a Pakistan-based company. The Company is engaged in manufacturing and sale of yarn, fabric, home textile products and energy sales. Its subsidiaries include Sapphire Wind Power Company Limited and Sapphire Renewable Solutions (Private) Limited, which is engaged in assembling, manufacturing and sales of alternative energy and lighting products. One of the largest manufacturers and exporters of textile products in Pakistan, Sapphire technology comes from Europe, Japan and USA. Capitalizing on the regions principal crop,
Internship Report On Sapphire Group Page 6
cotton, we source this locally, and augment our offerings by providing imported fiber from the worlds best crops. We work with specialized fibers bringing in the newest innovations from major fiber and chemical producers, and our manufacturing from yarn to finished fabric is performed in our facilities in Pakistan. Synergies are formed with offshore garment manufacturing companies. Our products are marketed to the industry's biggest names in Asia, Europe, Australia, and North America. Over 14,000 employees Annual turnover US $ 435 Million Some of the basic products of Sapphire Group Of Company
Cotton:
The most important component that determines the final quality of finished yarn is Cotton fibres. Technically sound cotton sourcing divisions procure highest standard quality cotton from the best cotton crop areas. American Pima, Australian, & other imported cotton is sourced internationally.
Man-made fibres are procured from world-renowned manufacturers. Actively involved in training of cotton growers and ginners. Each spinning plant is specialized to manufacture specific yarn count.
. Dyed Yarn:
Specializes in versatile dyeing techniques including VAT, Reactive and Disperse. Can offer bleached yarns of desired absorbency. These machines are equipped with state of the art electronic control systems capable of processing 10,000 kg yarn per day
Page 7
Production capacity is 5 million kg of yarn per month. The production is divided into 11 spinning plants. Dyed Yarns 150,000 kg/month. Fibre bleaching capacity of 3500 Kg per day for surgical cotton.
Other Products:
Product range consists of a variety of ring spun, compact spun, open end, dyed and bleached yarns in various counts.
Along with basic cotton and PC yarns we also offer specialized yarns for niche market including MVS, Coolmax, Fortrel, Tencel, Modal, mlange, slub yarns and core spun Lycra yarns.
Moving with times and are inline with latest technology including compact spinning. Key product quality parameters stand amongst the top 5% of the world-class yarn manufacturing companies.
Following are other business which Sapphire Group is also engagaed like:
Page 8
Sapphire Lahore:
Sapphire (Lahore) Limited was incorporated in 1975 as a public limited company in Pakistan under the Companies Ordinance. Its registered office is situated at Main Gulberg, Lahore.
Internship Report On Sapphire Group Page 9
Sapphire group of industries started its business with 43000 spindles at Khariawala Sheikhupura Road. The Company is engaged in business of spinning, weaving, dyeing, stitching, power generating, solar products, dairies, buying, selling and otherwise dealing in yarn, fabric and Sapphire was the
CUSTOMERS
REGION
leader in producing countrys finest Yarn and also it also dealing in made-ups made from raw cotton, synthetic fiber and cloth and also generates electricity for internal use. They have hundreds of employees in their Lahore setup, there are different deparments working together in this office like Marketing, HRM, Finance, R& D and Accounts. The main impressing system is that their all departments are connected with one another through networking software which costs more than 1 million dollars but saves precious time of the employees and helps them in communicating with each other and with the management. They deals in domestic and foreign deals from the same office but different peoples are hired to handle international and local customers independently. In the end I can say that it is perfect organization in our country which is providing benefits to our country in many ways and generating employment for the new comers and our government should made policies which should be helpful for organization like Sapphire.
Page 10
GAP PVH OLD NAVY RIVER ISLAND OXFORD AMERICAN EAGLE FEDERATED LEE ZARA MANGO LINDEX C&A CHAPS MAVERIC RANGLER TOMMY HILFIGER MUSTANG OFTEN PULL AND BEAR
USA USA USA USA USA USA USA USA/EUROPE EUROPE EUROPE EUROPE EUROPE USA EUROPE EUROPE/USA USA EUROPE EUROPE EUROPE
Competitors:
Page 11
There is very tough competition in the textile industry of Pakistan. Following are the salient competitors of the company: Nishat Textiles Artistic Denim Group Kohinoor Textiles.
Labor Market:
Its labor market belongs to Lahore and its outskirts. The company hires both experienced and inexperienced people but experienced are preferred in order to meet the competitive demands. The company treats its employees equally.. Employees are entertain with Bonuses and incentives on the behalf of their performances.
Supplier:
We deal with different suppliers inside and outside the Pakistan The main suppliers of Cotton products are from sindh and other cities as well. The international suppliers of Sapphire are from U.S.A, Russia, Australia and Turkey.
The highest rank in this unit is Chairman under him Executive Director comes. General Manager has three managers below him who are Mill Manager, Technical Manager and Finishing Manager. Each Manager has three Assistant Manager and one Junior Assistant Manager with each assistant manager. And then comes the turn of Functional employees, there is one Machine Technologist under junior assistant manager and the last but not the least, every machine technologist has three Assistant Machine Technologist.
1 2 3
Top Management
Page 13
General Manager
General Manager
Deputy Manager
Asst. Managers
Line Managers
Page 14
SWOT ANALYSIS
Well the purpose of SWOT analysis of the company is to determine the Strengths, Weaknesses, Opportunities and Threats before I go further I should explain that Strengths and Weaknesses are within the organization and Opportunities and Threats are those characteristics which were faced by the Sapphire Group from outside the organization. As an internee I have spent a small time in the organization but following is the SWOT analysis which I have made on Sapphire Company during my stay in the organization.
Strengths:
Differentiation on few products. Employee intention Financially Strong position Availability Of Loan is very easy Fastest Communication within the organiztion High quality product Latest mechanized machinery from Germany & Japan Highly motivated workforce to compete in corporate culture Bestest Yarn producing company in whole country
I have noticed that Sapphire Group has many Strengths which are within the organization and helps the company in generating huge turnover every year like 217 million U.S Dollars, the main strength which I have noticed during my stay in the company is that the working environment of sapphire group is very friendly and cooperative like every senior is always ready to help their juniors, the other main strength of the organization is there is yarn which is most finest in the whole country and no one can compete them up till now. Sapphire is a big group but as we know that every big corporation needs loan in order to make purchases and other expenses, I have noticed that banks loan are available to the company every time they need so they dont have to
Internship Report On Sapphire Group Page 15
face finanacial crises. Company have large number of loyal customers which are doing business with the company for more than ten to twenty years and in the end I can say that there is no organization which can achieve its goal without a motivated workforce and Sapphires workforce is the most loyal and highly motivated workforce.
Weakness:
Most of sales are export so thats why we are dependent on external market Currency fluctuation No advertisement at all No Profit Sharing of different units. Decisions are made independently in some units. Centralized decision making
Every organization also have some weaknesses in them when I asked my head Deputy Marketing Manager about their weaknesses he answered that I dont think that we got any weakness because we are the best one in the market, but some how there are some problems in the company like they dont have a dress code in the organization which gives a very bad impression on a new customer who recently interacted with the company. They dont advertise themselves because they believe that dont have to advertise themselves because they are not making consumer goods and are dealing direct with the domestic consumer but as we know that small industry in our company is also growing day by day and in order to catch these customers they should advertise themselves. Some units except head office centralizes decision making is going on which is not providing the company with benefits. Opportunities: New product development Strong Entrepreneurship Innovative idea High investments were made for the replacement of the machinery.
Page 16
Organization can captured new market segments around the world Organization reduce the cost by proper utilization of resources
Sapphire Group has too many opportunities in the current scenario like they should research for new products and develop them for local consumer which can be beneficial for them.
Threats:
Political Instability in the country Economic Instability Law and Order is not favourable for the company. New entrance of competitors in the market. Changed of Government policies
Threats which are facing by Saaphire group are almost same which are facing by our domestic industry like continuos political instability in out country, as every new government comes they introduced new policies for the industry which disturbs the whole setup of the firms like Sapphire Group. As law and order situation is not good in some parts of country so transporting products is sometime difficult from rural areas because of law and order situation in the country is not good at all. The main threat is new competitors are entering the market as the world is becoming globalized economy different countries are entering Asian markets, so when the competition increases we know the profit decreases so it is another threat for the company.
Marketing strategy
Internship Report On Sapphire Group Page 17
Sapphire is a group starting from 1967 which means that it is an old Textile industry in Pakistan. On its purchase side as I have worked for a whole week in Yarn Procurement department of the Group, which is a small branch of marketing department. I found their business to be such a vast that they ordered their raw material on telephones, they made contracts with the new companies and those companies having already contracts had no need to made. Their fiber is very famous not only nationally but internationally as well. The past year has been tough for the textile industry as competition is increasing steadily and margin of profit is becoming smaller day-by-day. Our competitors from Asia have come up in a big way with lower prices resulting from lower overhead, cheaper and better raw materials and machinery. Countries like China, Indonesia, India and Bangladesh played an active role in the fabric market. Improvement in quality and production capability was the main area of concentration. Market for Yarns was diversified to increase the customer base and reduce dependency on the Far East. In this effort business with Malaysia, Korea, Taiwan, UK and South America was initiated in case of Yarns.
The opportunities are limitless, we have to review and analyze them very thoroughly to associate with the right people in the long run. In shorter term we are building a small amount of quota, which will give us recognition as a bedding supplier. On top Sapphire has developed more direct and closer relationship with its end customers. Oceanic has been our most lucrative and mature marker. In business terms it is our cash cow market. Middle East market is composed of South Africa and the new emerging markets like the UAE, Egypt, Saudi Arabia etc. Sapphire has dedicated new staff with fresh energy for the emerging market. Sapphire has increasing its profitability by working efficiently, procuring better raw material and most importantly kept a very close association with its customers.
Marketing Agents
As an internee I have noticed that Sapphire Group mostly deals with the raw material for the cotton industries and they dont have to advertise themselves thats why they have adopted a
Internship Report On Sapphire Group Page 19
method of hiring different and experienced market agents who keep in touch with the companys customers like Azgard 9, Crescent, Nishat Linen etc. They go to these firms and update them than get their orders directly from them and submit these order at the Head office.
Competitive Strategy
As for as Sapphire Group is concerned its own name is its competitive advantage. Being an old group it has its own name in the field of Textile. Furthermore, its financial assets are also an edge for the group. As being late in paying any party makes future problems which result in delivery of any product to be late and resulting in bad image of the company. The company adopted the pull and push strategy and the performance and the quality of the products are better that is competitive edge for company.
Sapphire Group has been working for 3 to 4 decades and it has passed introductory and growth stage and now it lies in maturity stage because they dont need to advertise themselves. Customers are satisfied with their products.
Page 20
Maturity Stages
BCG Matrix
Sapphires SBUs:
Page 21
Stars:
Yarn and Fabric lies in the category of stars because it has a strong market share and a high business growth rate as well. Demand of yarn is very high in the market and even they dont have to advertise themselves because they have large number of order from outside the Pakistan and same thing is happened with the fabric products.
Cash Cows:
Dairies lie in this category because it has low business growth rate and the rate of market share is very high. They import cows from Australia and New Zealand to provide the best dairy products. This happens because they concentrate more in yarn products but slowly they are intending towards dairies.
Question marks:
Fancy yarn lies in question mark category because it has high growth rate and low market share this happens because sapphire is investing a large sum of money in fancy yarn but the demand of the fancy yarn is not increasing as its quantity is increasing
Page 22
Dogs:
Sapphire has introduced solar products in the market and it lies in the Dog category because it has low market and growth rate is also low/ it happens because these products are highly expensive and everyone cannot afford these products. So, in short we can say that these products failed to make market in Pakistan.
Learning as internee
Well as an internee I can say that I have learnt much from Sapphire group of Company basically I have much interacted with marketing group but I have learned that out student life is quite different from a working in a huge corporate sector like Sapphire which have dealings across the seas, I can say that the basic concept that I have learned is that how to keep and retain your loyal employees to firm and as an internee I have noticed we should make good relations with other staff members. As my keem interest is to join marketing group in my future thats why I have joined marketing department at Sapphire Company under two Marketing managers who had gave me enough knowledge which an internee is supposed to get during his internship. I have learned that it is a very difficult to market and than sale of your product in a globalized economy of this century and the one main thing that I have
learned from my seniors Mr. Shuaib (Asst. Marketing Manager)and Mr. Nadeem (Deputy Marketing Manager) is that we should have faith and believe in ourselves that we are the best whoever we are and wherever we are working when we go out in market to sell our product to customers. This made me clear that a successful marketer should be very confident during his whole career. The other things that I have learned from the organization is that effectiveness and efficiency is always required in every organization in order to become a successful employee and we should always should keep update with the new technology and new
Internship Report On Sapphire Group Page 23
methods of working. Well as an internee I have been assigned with some duties, tasks and I also faces new experiences and problems which I am going to mention below. DUTIES at Sapphire Group: It was a tremendous experience that I have availed with devotion and commitment. I have an interest in textile industry thats because Textile is the back bone of the economy of the country. But one thing I want to share its not easy that looks it has a great toughness and complications in its process but the overall it was nice and great. I discussed about the marketing practices going on in the international Textile market. I.e. to target your customer after knowing needs with product solution of the customer need. I also performed some task in the spinning department like how to calculate the no of frames for a specific order and how many days are require for a specific order. I learnt about the marketing procedure and required of the documents and dealing with customers. All the record is saved. We know every business is done through transaction and in oder to recover these funds and than pile up the files is also my duty. Advertisement is not done at Sapphire but they have hired agents which went to markets and take orders from the domestic customers, my senior manager has sent me 4 times in my whole internship period with these agents in the market so, I can observe the behavior of different customers.
I have been also assigned duty of two weeks to make deal with small customers from outside the country in telephones and internet marketing etc.\
During my internship I learnt about the value that customer is the only who come first. The fulfillment of the demand of customer is our basic motive.
I learnt about the HR policies that how many types of hiring Nishat textile using. And what are the procedures of the Nishat about HR matters.
limited is
I learnt that in the textile sector the cutting and stitching based on two rules
Page 24
Accomplishments
The first thing which I have accomplished by doing internship in Sapphire Group is that it is my dream to work in a corporate sector which have foreign and domestic dealing as much because it gives me enough knowledge of my interest field that a small firm cannot give me in such a short time of six weeks.
I have learned different methods to market your products without using advertisement methods and two times I have registered an order of 40 pound bag of yarn from different customers and I have learnt the nature of customers are different from one another and we should deal them according to their needs.
I have gain a very broad experience of marketing and selling products in different regions from all over the world that every country even some states of a same country have different demands from each other according to their cultures and habits etc. and in order to meet these demands we should be always ready and must update our employees according to the current situation of market.
The main thing which Sapphires Group has blessed me with that time is very important and we should take much care that we should not waste our time because it is very precious.
As an internee we have learned that how we should update our customers about the quality of our products and maintain good relationship with our customers in order to retain them for a long time of period, as the organization has sets their employees mind that we are nothing without our customers.
Page 25
The very important thing which I have accomplished at the organization is keep update with your competitors performance and the methods they are using so, we can compete them in every aspect of our business.
First of all I can say that I have acquired a good marketing while doing my internship at Sapphire Group of Companies. Being an internee I have gained knowledge if you want to be a good marketer than you should be confident on yourself that
As an internee we have not given much difficult tasks to handle because we are new in the market and does know much about he market and simply I can say that 6 weeks is very short time to face such challenges and I can say that the environment at the company is very cooperative and friendly that everyone does not hesitate to ask about the problems he is facing so, there is very short chance of facing problems while working at sapphire but still we Humans are not always thankful and there are some problems which I have faced during my stay at the organization
All tasks are easy and planned according to the experience of internee but one day my manager is on leave and the other manager have assigned me to pile up the files of 150 sales and balance all the account and I can say that it is a very difficult task assigned to me because I dont have knowledge on this and also have fear that if the balance is not equal than there will be very big problem but with the help of one senior staff member I have finished my job.
Page 26
The main problem is that the company staff members are so much busy that they dont want and also dont have much time to share their knowledge with the internees and it is very difficult to lean things from them because the Sapphire group is very huge organization who have dealing in and outside Pakistan.
The other problem which I have noticed is that there is not equal employee opportunity at Sapphire Group for the females as I have learned that there is only one female member in Marketing field among hundreds of people and it is a discrimination. I think that females should get equal chance to share work in our community this problem occurred because the owner of Sapphire Sheikh Abdullah believes that male staff member cannot perform well in the presence of opposite sex.
The other problem is that company should advertise themselves as they are one of the leading manufacturer of yarn, cotton etc in the country but still they believe that they have to advertise themselves because they are not dealing with domestic customer.
The main challenge which internee faced at sapphire is dress code problem as there is no proper dress code in the company and we have habit of dress code which also creates problems for us.
The agents which are hired for the outside market are not much cooperative specially for the internees and they dont share much of their information with me and anyone like me who is doing internship because in my opinion they believe that it is not important for internees.
These are very littler problems and challenges which were faced by me during my internship duration but these hurdles and problems has made me learned that if we want to work in a
corporate sector we should be ready to face these type of challenges because these thing made us strong nough to grow in our field. How Experience Impact my Career:
Internship Report On Sapphire Group Page 27
Well in my opinion I have not learnt much from this intership because it is very short time to understand our business environment because it is a very vast knowledge, the basic experiences which I have gained from this internship is that we should prepare hard for the future because the
business market is changing with days and in order to become a part of this changing business world we should be very competitive in our fields. As I am specializing in Marketing and Sapphire Group is a place where I have different operations regarding to basic principles to specialized marketing principles because Sapphire have different marketing operations in the country as well outside the country with such big corporations like River Island, Levis etc so they add much knowledge in marketing experiences which I dont have before joing the company. I can say that after doing the internship we have came to know the real purpose of our study because we have learned that why are we studying and what will be its implications in my future.Working in a multinational national organization like Sapphire Group Of Companies is a good experience for me.
Bibliography
The main source of data gathered from the Sapphires official website i.e.: www.sapphire.com.pk
Most of the data is collected directly from Mr. Shuaib Raza (Asst. Marketing Manager) & Mr. Nadeem (Deputty Marketing Manager).
All the relevant information available in the HR office, like organizational hierarchies strength reports.
Page 28
http://www.quickmba.com/marketing/product/lifecycle/
Page 29