Readymade Garments Industry of Bangladesh Essay Sample

1. 0 Introduction
1. 1 Background of the survey
The readymade garments ( RMG ) industry of Bangladesh is the fastest turning export oriented industry of the state. Get downing in late 1970ss. the ready made garment industry of Bangladesh now accounts for over 64 % of the country’s entire export gaining. A close expression at the composing of RMG export of Bangladesh over the last two decennaries reveals that the woven garments sub-sector constituted the lion’s portion. In fact. the beginning of the development of RMG sector started with woven garments in 1985. In the first half the 90s. the portion of woven garments was above 80 % . However. the portion bit by bit started to worsen to approximately 70 % in five old ages tardily and to 62 % in 2004 and to 38. 80 % in 2005-2006 ( Export Promotion Bureau Bangladesh. 2006 ) . In add-on. compared to its double-digit growing in the 90s. the woven garments export grew merely approximately 8 % in 2000.

Such a worsening growing rate and a steep diminution of the portion of woven garments export in the entire RMG export makes it pressing to re-evaluate the position of the sector of Bangladesh vis-a-vis with that of the viing states. Furthermore. with the laterality of the advocates of free market economic system. some alterations are taking topographic point in the planetary trade ordinances impacting the readymade garments sector of Bangladesh in general. One illustration of such alteration is the phasing out of the dress quota on December 31. 2004. Under these fortunes. it is imperative to measure the fight of the woven garments sector of Bangladesh in the planetary market topographic point. Hence the research worker studied the overall woven garment industry in group and this survey analyzes the woven garments industry fight of a individual organisation from strategic direction positions. 1. 2 Rational of the Study

The aims of the endeavor analysis are the undermentioned. •To place the vision. mission. aims. and values of the company. •To place the procedure of crafting and executive scheme. •To analyze the company’s resources and competitory place. •To happen out the application of the five generic competitory schemes. •To happen out the application of assorted complementary strategic options. •To happen out the tantrum of the schemes to the company and the industry state of affairss. •To identify assorted variegation schemes.

•To happen out the application of moralss and corporate societal duty. •To place the leading manners and corporate civilization. 1. 3 Scope of the Study
The survey has some boundaries. The undermentioned points delineate those boundaries. •Because of the extremely disconnected nature of the industry even in the domestic market ( with approximately 400 woven manufacturers present in different parts of the woven garments value concatenation ) . collection of endeavors could non be provided. Rather. a whole position point of the endeavor has been taken. This limits the research workers of this survey non to utilize fiscal collection as good since merely a few woven garments industries ( non more than 5 ) are enlisted with the stock exchange. •The analysis has been confined to the cardinal markets of the woven markets. The markets where Bangladesh on occasion exports or where the sum of export is really little. those markets are excluded from the range of the survey. 1. 4 Methodology

1. 4. 1 Research design
The survey. given the nature of the aims. has a descriptive research design. Since this survey is traveling to be one of the earliest surveies with similar aims about the woven garments sector. the research would be of ‘reporting’ sort. Harmonizing to Cooper and Schindler ( 2003 ) . at the really simple degree a ‘reporting study’ is done to supply an history. or to do a summing up of informations. or to bring forth some statistics. They have besides argued that a coverage survey requires really small illation. However. the current survey replies ‘what’ and ‘why’ of Macro environment. industry and competitory conditions. and therefore. requires a great trade of illation. Hence. the current survey would be more suitably termed as a descriptive survey. Therefore. the research design for the survey is descriptive research design. 1. 4. 2 Data aggregation

1. 4. 2. 1 Primary beginnings
The research workers collected the endeavor informations organizing and a figure of cardinal informant interviews ( KII ) with the cardinal individuals in Rahim Textile Mills Ltd. as I have selected this organisation for the endeavor analysis. Due to clip restriction. the participants were chosen through personal contacts and participants’ willingness to take part in the treatment. The cardinal sources considered were senior directors of the selected organisation and a few bankers related to the organisation. 1. 4. 2. 2 Key Informant Interview

The research worker will choose at least 7 proprietors or directors to interview as cardinal sources. This interview will concentrate on the endeavor degree information like the vision. mission. nonsubjective. current public presentation in both local and international markets. the rivals in both markets. merchandises and so on. 1. 4. 2. 3 Secondary beginnings

The research workers have explored the undermentioned secondary beginnings to run into the aims of the study. •Data stock list of Bangladesh Export Promotion Bureau Bangladesh ( EPB ) associating to readymade garments export. •Data stock list of Bangladesh Garments Manufactures’ and Exporters’ Association ( BGMEA ) •On-line intelligence archive of newspapers and intelligence bureaus place and abroad •Annual study of the company

•Books and diaries at the library of Institute of Business Administration and University Press Limited 1. 5 Restrictions of the Study
The current survey is limited by a figure of factors. First. the participants for KII have been chosen handily. Second. the list of inquiries KII has been developed from the abrasion by the research workers themselves. However. these restrictions are non likely to annul the decisions. The grounds are the following. First. the research workers will depend on both primary and secondary beginnings. Second. the primary beginnings have been bifurcated into directors of woven garments companies in Bangladesh. Third. the list of inquiries has been checked for recasting by the teacher of the class. The polish of the list of inquiries following the suggestions of such an adept enhances the relevancy and dependability of the inquiries asked. Hence. these two attacks guarantee cross-validation of information needed to carry through the aims of the study. Strategic Planning procedure for Rahim Textiles Limited

2. 0 Company Profile
2. 1 Vision
The vision statement of Rahim Textile Mills Ltd is “to create added value to the common wealth and to profit the society” . From the treatment with company directors. the research worker revealed that by the above stated vision statement they want to intend to better the well being of valued equity holders. investors. employees and members of the society without disrupting or perturbing the cosmopolitan socio-ecological-economic place and the procedure of human civilisation taking to peaceable co-existence of all the living existences. The vision statement of Rahim Textile Mills Ltd. lacks the of import features of a vision statement. First of all. from the vision the sort of company can non be identified. It is excessively much generic and fails to place the concern or industry to which it is supposed to use. This vision can be applied to companies of any sort of industry. Second. the vision statement is non focused to supply directors with counsel in doing determinations and allocating resources. The vision is besides bland and lacks motivational power. Finally. the vision statement of the company is obscure in significance ; no concrete aim is mentioned in the vision. 2. 2 Mission

Recognize the vision ; the mission of the company is to play a taking axial rotation in export oriented fabric sector through sensible application of Knowledge and Skills. This mission is besides really weak in intending. There is no description of the company’s present concern range and intent in the vision statement. 2. 3 aims

The nonsubjective Rahim Textile Mills Ltd is to maximise our productiveness on rigorous ethical criterions at minimal cost to guarantee optimal growing of wealth of the company. This is fundamentally falls in the type of strategic aim. Since the company is doing net income satisfactorily and the bing fiscal status is healthy plenty. they are concentrating on the strategic aim. 2. 4 History

Rahim Textile Mills Ltd started its journey in 31 December. 1981. The company commenced production in the twelvemonth of 1987. Initially the company was bring forthing merely woven garments. afterwards with the enlargement scheme the company built its capacity in both woven and knit sector every bit good as in dyeing. They already established immense mill at shafipur. Kaliakar and Gazipur. all outside but really much near to the capital metropolis. The company has four sister concerns. They are as follows: •Malek Spining Mills Ltd.

•Knit Asia Ltd.
•New Asia Ltd.
•Salek Textile Ltd.
Rahim Textile Mills Ltd. enlisted in Dhaka stock exchange on 29 March. 1988. 2. 5 Merchandises
The chief woven merchandises of Rahim Textile Mills Ltd are shirts. pants. chapeaus and jackets. largely made from cotton. Recently the company are enlarging its merchandise breadth and bring forthing interior wears for different worldwide celebrated trade names. On the other manus. the company besides produces knit garments merchandises. e. g. jumpers and socks. 2. 6 Export Volume and Finish

As we discussed with the cardinal individuals of the company. the sources were declined to unwrap the exact measure of exports from their production. but they mentioned the proportion of export to entire production. They mentioned that the company exports about 92 % of its merchandises. Most of the export is sent to USA every bit good as the other major part in EU states. 2. 7 Fiscal Performance

The comparative fiscal consequences of Rahim Textile Mills Ltd. are summarized in the undermentioned tabular array. ( Tk. in million )
2007-082006-2007
Turnover191. 442116. 094
Gross profit32. 94713. 222
Operating expenses25. 91512. 248
Operating profit7. 0320. 974
Net net income ( AT ) 6. 8361. 396
Gross margin17. 21 % 11. 39 %
Net margin3. 57 % 1. 2 %
Gaining per portion ( Tk. ) 37. 567. 67

From figure 2. 1. it can be concluded that turnover of the company is consistent and higher in the last twelvemonth. In the last twelvemonth Rahim Textile Mills Ltd. diversified its concern in knitting sector and the consequence is increased turnover in the last twelvemonth. From figure 2. 2. it can be concluded that production of the company is consistent and higher in the last twelvemonth. In the last twelvemonth Rahim Textile Mills Ltd. diversified its concern in knitting sector and the consequence is increased production in the last twelvemonth From figure 2. 3. it can be concluded that gaining per portion of the company is consistent and higher in the last twelvemonth. In the last twelvemonth Rahim Textile Mills Ltd. diversified its concern in knitting sector and the consequence is increased gaining per portion in the last twelvemonth. 3. 0 Internal Analysis

3. 1 Core competences
By the definition of nucleus competency. it is a competitively of import activity that a company performs better than other internal activities. In instance of Rahim Textile Mills Ltd. its nucleus competency is the quality of its merchandises. In production the company has been utilizing its extremely experienced and skilled professional in its fabrication procedure. Therefore it already gained trueness from its purchasers. The company non merely concentrates in quality. but besides maintains the cost of the merchandise so that the cost becomes competitory among the competition in the industry. 3. 2 Distinctive competences

From literature. typical competency is a competitively valuable activity that a company performs better than its challengers. The research workers tried to place typical competency of Rahim Textile Mills Ltd. through cardinal informant interview with the top degree directors of the company. But from the response of the KII participants. it has been revealed that the company has no typical competency to pull the vigorous purchasers in the market. 3. 3 Key resources

Key resource strengths of a company by and large form the basiss of scheme and do the company competitory in the industry. From the KII with the top degree directors of Rahim Textile Mills Ltd. the research worker identified that cardinal resources of the company are: •Highly experienced professional

•Better engineering
•Better market entree
3. 4 SWOT Analysis
In order to carry through SWOT analysis the research worker followed the stairss below. 3. 4. 1 Resource strength and competitory capablenesss
From primary informations of KII and secondary informations. the research workers identified the following resource strength and competitory capablenesss. •Highly experient and skilled work force as its rational capital relation to challengers which provides the company acquisition and experience curve advantages. •Better merchandise quality compared to the medium size competitory challengers •Better client base as compared to the little garments companies •Technology is on norm updated. but non like that of Square fabric or Bex-tex •Capacity is well-matched with its production volume.

3. 4. 2 Resource failings and competitory lacks
Potential resource failings and competitory lacks of the company. as identified by the research worker. are mentioned below. •The company has no clear strategic vision to direct the company towards specific marks •Behind challengers is utilizing e-commerce for their publicity aim whereas the company even has no web site for the convenience of information assemblage by the foreign purchasers. •Its merchandise line is narrow compared to the other challengers in the industry. •It has no trade name image in local market and really weak influence of trade name in the planetary market. merely with the selected providers. •Long lead clip is another important factor for which the foreign purchasers are declined to purchase its merchandises. 3. 4. 3 Market chances

Although Rahim Textile Mills Ltd. had been running their concern in woven sector merely. they are now spread outing their concern skyline in the knit sector besides. The company realized that its skilled and experienced work force can be utilized in the knit sector efficaciously and expeditiously. We foresee a brighter hereafter for us. Print and dyeing orders shall increase overall. We must go on to endeavor to accomplish more orders which shall guarantee greater advancement and prosperity. It has become indispensable for us to ship upon capacity sweetening and reconciliation of our dyeing & A ; publishing machineries desperately to run into the rigorous quality confidences imposed by the purchasers. We need to better labour productiveness and consistence in quality. We will confront tougher competition both from within and outside. We need to decide issues related to bond and imposts to guarantee faster disposal of imported natural stuffs. We need to work extensively and prosecute the authorities to hold proviso of subsidy and other inducements at different phases of production and procedure to stay competitory in the international market. The conjunct and coordinated attempts will guarantee higher production. better quality to do the production twelvemonth 2007-2008 the twelvemonth of greater advancement and prosperity. 3. 4. 4 Threats to the hereafter profitableness

Day by twenty-four hours the strong challengers are capturing the markets available to the industry in Bangladesh. Another menace is coming from technological alteration. Rahim Textile Mills Ltd. is non big plenty to regularly update its engineering to vie with other cardinal challengers and so losing market portion bit by bit. Besides. the company is confronting cost cut competition from the challengers. 3. 5 Prices and costs fight

The rise in the monetary value of chemicals and dyes by over 30 % besides affected the order credence and overall production. Exporting states of dyes. Chemicals and Colors particularly China. India increased their monetary values doing the market really competitory and hard. Buyers took advantage of the competition amongst similar dyeing printing Factories and offered lower monetary value. Despite such a state of affairs we could better both export and local market monetary values. Dearth of the trained work force had led to hapless labour productiveness and incompatibility in the quality of fabric merchandises. 3. 6 Business theoretical account

A company’s concern theoretical account relates to whether the revenue-cost-profit economic sciences of its scheme show the viability of the concern endeavor as a whole. In instance of Rahim Textile Mills Ltd. concern theoretical account of the company is non merely feasible but besides it shows its success in many back-to-back twelvemonth as the company is doing immense sum of net income regularly. The concern theoretical account of Rahim Textile Mills Ltd. is a proved theoretical account which ensures the company’s viability in the market for a long period- from 1986. 3. 7 Value concatenation of the company

The value concatenation of Rahim Textile Mills Ltd. is similar to the following value concatenation theoretical account. On the value concatenation theoretical account. Rahim Textile Mills Ltd. lacks efficiency in gross revenues and selling. Therefore the company is fring market portion to the competitory challengers. Besides there is no R & A ; D section in the company. This is why they are missing in merchandise invention and merchandise distinction. 3. 8 Dimensions of organisational civilization

Culture of an organisation consists of the features as described in the undermentioned figure. From the position of the woven garments industry in Bangladesh. most of the employees in the industry come from inferior background in footings of both academic and societal position. Almost all the workers’ educational background is either SSC or below SSC. They are largely incognizant about the civilization of the organisation. Even the directors are really small concerned about the civilization of their organisation. From our focal point group treatment. the discussants give importance on the undermentioned features of organisational civilization: Aggressiveness

The directors are aggressive with their workers instead than easygoing. The directors ever give force per unit area to the workers about their public presentation. Even a worker is executing satisfactorily ; she or he is non given any sort of motivational inducement or regards to go on his public presentation. Team orientation

In this industry squad orientation among the employees is about absent. The directors. in most of the instances being incognizant about synergism. make non trouble oneself about the public presentation of squad. instead ever prefer single public presentation. Peoples orientation

Peoples orientation reflects the grade to which the direction determinations take into consideration the consequence of results on people within the organisation. By definition and remarks of the discussants of FGD. this feature of organisational civilization is seldom practiced by the directors in planning. design and execution of production. Outcome orientation

Outcome orientation measures the grade to which direction focuses on
consequences or outcomes instead than on the techniques and procedures used to accomplish those results. In most of the woven garment industry the production directors are outcome oriented. They attach importance to the quality of the merchandises instead than their production procedure and engineering used in production. Attention to detail

Attention to item is the grade to which employees are expected to exhibit preciseness. analysis. and attending to detail. Since most of the workers in the garment industry are unskilled and even they are non provided any sort of preparation. they must follow the guidelines of their work literally as mentioned by the directors. 4. External Analysis

4. 1 Rival Analysis
Major rivals of the Rahim Textile Limited is given below The factors of similarity are largely activism in selling and merchandising. handiness of local natural stuffs. bringing dependability. and degree of backward linkage. 4. 2 Competitive Positioning

In order to place the competitory place of the company. the research worker used strategic group mapping sing the selected 7 companies by the group. In strategic group mapping research workers has given importance to the cost of the merchandises. merchandise quality. active selling. lead clip. bringing clip. and export measure. The figure above shows that Monno cloth. Rahim fabric. Babylon Garments. Desh garments and Viella-tex have similar ranking on the footing of the two properties. All these five companies have higher quality while they are low in monetary value. So. these five companies emerge as a strategic group. On the other manus. Square and Bex-tex have mean public presentation on each of the considered factors of the function and hence. they can be said to fall in the same group. 4. 3 Fabric Industry:

The fabric industry in Bangladesh occupies a outstanding place within the country’s industrial construction. It is the largest fabrication sector. supplying occupations for some 50 % of the entire industrial work force and lending 9. 5 % of the country’s GDP. Besides. it accounts for about 77 % of entire exports. doing it Bangladesh’s taking foreign exchange earner.

In the early 1980s exports were dominated by jute while garment gross revenues were undistinguished. But today garment exports are by far the taking export class. In 2001/02 the vesture sector generated every bit much as US $ 4. 58 bl in foreign exchange. The industry benefits from particular entree to markets in the EU. Canada. Norway and Japan. Because Bangladesh is a least developed state. its fabric and vesture exports enter these states quota-free and duty-free. This grant. together with low labor costs. provides the garment sector with a strong competitory advantage. But in order to bring forth garments for export. the sector has to buy a big portion of its narration and fabric demands from abroad. particularly woven cloths. Few local fabric houses are able to bring forth stuffs of the needed quality or in equal measures. The Bangladeshi authorities is trying to rectify this state of affairs. To cut down the country’s import measure. it is offering revenue enhancement grants and inducements aimed at promoting investors to develop the necessary backward linkages. Profitableness of a market/industry depends on strength of five menaces to profitableness: 4. 4 Porter’s Five Factor Analysis:

4. 5 Industry life rhythm Analysis:
A utile tool for analysing the effects of industry development on competitory forces is the industry life theoretical account. which identifies five consecutive phases in the development of an industry that lead to five distinguishable sorts of industry environment embryologic. growing. stakeout. mature and diminution. Fabrics industry is at adulthood phase in the industrial merchandise life rhythm phase. 5. 0. Scheme Analysis

5. 1 Generic Competitive Strategy
A competitory scheme concerns the particulars of management’s game program for viing successfully and accomplishing a competitory border over challengers. A company achieves competitory advantages whenever it has some type of border over challengers in pulling purchasers and get bying with competitory forces. There are infinite fluctuations in the competitory schemes that companies employ. Chiefly because each company’s strategic attack entails custom-designed actions to suit its ain fortunes and industry environment. The largely used five competitory schemes are shown in the undermentioned figure. 5. 2 Low-cost supplier scheme

Among the five mentioned competitory schemes. Rahim Textile Mills Ltd. achieve overall low-priced supplier scheme. The company is the lowest cost supplier instead than merely being one of possibly several rivals with relatively low costs. The company’s strategic mark is meaningfully lower costs than challengers but non needfully the absolute lowest possible cost. 5. 3 Fitness of the scheme

Ready made garment industry is traveling really fast. new rivals are emerging in the market often ; growing rate is diminishing twelvemonth after twelvemonth. To get by with alterations Rahim Textile Mills Ltd. must orient its scheme so that the company can go profitable and competitory to environing competition set uping a typical competency. 5. 4 Strategies for come ining the market

More and more companies are happening themselves in industry state of affairss characterized by rapid technological alteration short merchandise rhythms because of entry of of import and fast-evolving client demands and outlooks -all happening at one time. Due to the entryway of new rivals the market for Rahim Textile Mills Ltd. is shriveling. To vie with these fast moving alterations. this company has to be technologically sound. merchandise advanced to pull the change-demanding client and merchandise variegation. 5. 5 Strategies for get bying with rapid alterations

It is really of import to understand the key driving forces of an industry to make up one’s mind upon the scheme of any company inside the industry. By seeking the cyberspace. reexamining related literatures. implementing cardinal informant technique. and by forming focussed group treatment the undermentioned key forces have been identified. •Growing usage of cyberspace engineering and applications

•Increasing globalisation
•Changes in the buyers’ demands
•Changes in cost and efficiency
•Changes in planetary ordinances in the fabrics and dresss industry In Bangladesh cyberspace engineering and web applications play a critical function in set uping coaction between importers and purchasers abroad. Exporters communicate with Importers though cyberspace where purchasers put their proposal and inquire for command. Prospective Sellerss bid through the cyberspace and the lowest bidder is rewarded with gross revenues contract This is how internet engineering Acts of the Apostless as a span in linking concern people across different parts of the universe. In domestic market there is no such marketer who uses web sites as a portion of their supply concatenation. Amazon uses website as a competitory tool in deriving clients. But such installations haven’t yet gained prominence in a underdeveloped state like Bangladesh. So Rahim Textile Mills Ltd. can take an inaugural eto develop web site for purchasers and providers. The overall planetary trade is increasing phenomenally every twelvemonth and after. In concern the procedure of traveling planetary is mostly marked by increasing volume of export and import and greater figure of licensing. franchising. strategic confederations. joint venture and puting up of foreign subordinates by concern houses.

Thomas Friedman while depicting the tendency of globalisation summed it up in one sentence that globalisation is “farther. faster. cheaper. and deeper. ” ( Hossain and Sandhir 2004 ) Key informant interviews reveal that trade liberalisation has made it much easier for come ining into new market and transport out fabricating activities by out sourcing them. Trade names like Reebok. Marks & A ; Spencer. Denim. Wall Mart. Levies. Nike etc. out beginning their fabrication activities to states like Bangladesh where they can acquire value concatenation activities done cheaper than any other portion of the universe. Although the ready made garment sector is non so much speedy altering. it has to be proactive about the market demand and thereby do itself prepared for the market demand. Other option is the company can respond with the alteration. Rahim Textile Mills Ltd. is sing the latter attack. It is responding with the alterations. When the other companies are contending to cut down lead clip and better bringing clip. this company besides seeking to walk in the same manner. The company is seeking to integrate new engineering for its production procedure. 5. 6 Strategies for prolonging rapid company growing

As Rahim Textile Mills Ltd. is average size company in the woven sector industry in Bangladesh. the company is following “horizon 1: short-jump” for prolonging rapid company growing. By this technique. the company is adding new points to the company’s present merchandise line. spread outing into new geographic countries where the company does non yet have a market presence and establishing offenses to take market portion off from challengers. The aim of this short leap is to capitalise to the full on whatever growing possible exists in the company’s nowadays concern sphere. The sustainability of exports of woven garments in Bangladesh remains under inquiry as the sector lacks backward linkages far from the demands.

At present. about 20 to 25 per cent of the natural stuffs required for the woven garments are supplied domestically whereas the same for the kit garment is 75 to 80 per cent. The makers depend on the international market for the remainder of the natural stuffs required for both the sectors. Given the form of turning demand for T & A ; C in the international market and the increasing fight from the major exporting states it would be hard for Bangladesh to stand in the competition with her limited supply-side capacity. Bangladesh may supper a serious reverse in outsourcing natural stuffs from the international market. 5. 7 Diversification Strategy

The large hazard of a single-business company is holding all of rhe firm’s eggs in one industry basket. If the market is eroded by the visual aspect of new engineerings. new merchandises. or fast-shifting purchaser penchant. so a company’s chances can rapidly dip. For these grounds the company takes variegation scheme to broaden its concern skyline. In the researcher’s instance analysis. Rahim Textile Mills Ltd. has besides realized the hazard of single-business Company and besides realized that the bing possible resources can be utilized expeditiously if the concern is broadened with the similar sectors. From this position point. Rahim Textile Mills Ltd. has extended its concern in knitting sector every bit good as whirling. 5. 8 Strategies for come ining new concerns

From the position point of input side. Rahim Textile Mills Ltd. considered the undermentioned factors in spread outing its concern skyline in new concerns. •Existing engineerings and expertise complement to the expanded concern •Existing competences and capablenesss are same valuable competitory assets for the expanded concern •New concern in spinning and knitwork is closely related to bing woven garments and so opens new avenues for decrease of cost •The bing providers expanded their supply in whirling and knitting natural stuffs every bit good as purchasers demanding merchandises of knitting garments. Besides the direction of Rahim Textile Mills Ltd. has thought about the result and the benefit of stockholders so that value is added to them. . There were three different picks for the company to diversify in the new concern. The picks are as follows: •Acquisition of an bing concern

•Internal startup
•Joint venture and strategic partnership
5. 9 Ethical motives and Social Responsibility
Corporate societal duty in RMG industry should be ensured for
•Long-run net incomes
•Ethical duty
•Public image
•Better environment
•Discouragement of farther governmental ordinance
•Balance of duty and power
•Stockholder involvements

6. 0 Conclusion & A ; Findingss
The analysis of Rahim Textile Mills Ltd. leads to the undermentioned of import decisions. •The cardinal markets of Rahim Textile Mills Ltd. are the undermentioned: the USA. UK. Germany. Germany. UK. France. Canada. Italy. Spain. Netherlands. Belgium. Sweden etc. These states account for more than 95 % of the woven garments export from this company. •The societal values and life style of the exporting states seem to be promoting for this company ( provided that it can heighten its ain styling ) . On the demographics side. both market shows aging population and about stalled population growing. Technology. such as assorted extremely machine-controlled loom mills create concern if Rahim Textile Mills Ltd. wants to vie in the high-end valued added merchandises. •The buyers’ penchants are chiefly to low monetary value. quality of the fibre content. laundry instructions. state of beginning. trade name name. and environmental friendliness. •Technological alteration is chiefly in the communicating side of the industry.

But in the production side alteration is non playing the critical function. Besides the economic systems of graduated table are non used by the current mills. Due to different hazard factors the enterprisers chiefly outsource their orders instead than increasing capacity. •In footings of strategic group mapping Rahim Textile Mills Ltd. has dramatic similarities with Monno cloth. Babylon Garments. Desh garments and Viella-tex. The factors of similarity are largely activism in selling and merchandising. handiness of local natural stuffs. bringing dependability. and degree of backward linkage. •Organizational civilization in Rahim Textile Mills Ltd. is weak in nature. The workers do non acquire any sort of acknowledgment or excess inducement against their out standing public presentation in the production procedure.

Rather the enterpriser consumes about all the pick of result from the industry. The employees have no control over their work. They are bound to follow the procedure provided by the directors. Organizations provide no preparation to heighten the accomplishment of the employees. •Leadership manner of the industry falls within the dominant leading. The directors ever try to maximise their net income at any cost without sing the benefits of the employees. The leaders of the workers sometimes misguide the workers for the interest of their ain benefit. The leaders lack unity. competency. consistence between word and actions. and trueness. i. e. all the merited qualities of leading.