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Example research essay topic: Sri Lanka Export Oriented - 1,582 words

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... ny like Oman. Ammar Textile when set up its unit Galaxy Textile in Oman the only thing done at that unit is the stitching of the T-shirts. The company have 90 % of work done in Pakistan and only the stitching and the re-export procedure is done in Oman. This shows that all the major operations are done at the mother company.

In Oman the finished product is transferred to their buyers. As the country have good legal, political, and economic condition so there is good opportunity for any industry to grow. As Ammar Textile is 100 % export oriented company and providing its whole product to its buyers, but still the company have a good competition in the international market. One of the biggest competitor in the international market is India, acquiring 40 to 45 % of the market, while some of the other competitors are Srilanka, and Bangladesh. All these countries have major crop of cotton and that is the reason they acquire a bigger portion of the market. As the company have all its major operations in Pakistan so we relate the profit of the Galaxy Textile with Ammar Textile, and it got a reasonable profit through its business. (In Millions except per share data) 1999 1998 % change Net Operating Revenues $ 20, 096 $ 19, 191 7 % Net Income to Share owners $ 125 $ 112 12 % Diluted Earning / Common Share $ 0. 29 $ 0. 28 04 % Cash Operating Profits $ 2, 290 $ 1, 989 15 % Amortization Adjusted Net Income $ 405 $ 350 14 % Total Market Value $ 8, 469 $ 14, 347 (41 %) Labor and technology is the key factor of any industry to grow faster.

Ammar textiles with its two subsidiaries have a skilled and efficient labor with advanced technology. The total strength of the labor working in Ammar and its two subsidiaries are, Ammar Textiles 1700 employees. (including 100 managers) Galaxy Textiles 350 employees. (1 manager, 3 supervisors) The Company strives to create a business environment that encourages local managers and employees, with authority and responsibility, to constantly seek new and better business methods. They are dedicated to seizing opportunities, to improving efficiency and service in ways that grow profits for their customers and their Company, allowing our company to reinvest in our brands. The Company is confident in its commitment to local decision making and responsibility because of the skills, drive, and dedication of its people.

The external environment of an organization mainly consist of the macro environment and industry environment. As for as macro environment is concern following are the factors effecting the Ammar Textiles. Threat of New Entrants: High: - Threat of new competitors entering the industry is High, because the industry is in high growth and there are many exporters fighting for market share. Rivalry among The existing Competitors: High: - Ammar Textiles is facing a intense competition because there are many competitors in the industry searching for Market share.

The main competitors are India, Sri Lanka, Bangladesh, Far east, Hong Kong, Taiwan, Turkey and Spain. Substitutability Hi gh Substitutability as a brand is high Because there are number of brands in the International market. Substitutability as a product is also high because there is a substitute for Knitted shirts like dress shirts. Bargaining Power of Buyer High: - The bargaining Power of buyer is very high because there are many brands in the International market. Bargaining Power of Supplier Low: The bargaining power of the supplier is low because there main raw material is cotton yarn and there are so many supplier in the domestic market. Political/ legal forces High/Low: The political/ legal forces is the most important for every industry.

If this force is not favorable than this is a threat for the existence of the firm. In Pakistan the political and legal forces are high and in Oman it is low. Technological Forces Medium: - There is a technological threat, as this is a age of technological revolution. In case of change it will cause the trouble because the machinery is already very expensive. Economic Forces High: - Pakistani Rupee is continuously devaluate as compare to the dollar but the exporters could not get benefits from this devaluation because the inflation is increasing at a high rate. The prices of Sui-gas and electricity increases up to 37. 5 %.

Now a days there is period of recession in Pakistan. The overall economic condition of Pakistan is not favorable for any type of business. Social Forces Low: - Ammar Textile is the pioneer in adopting environmental standards set by EPA USA and the world bank by installing water effluent equipment in the factory. The company is also implementing the ISO 9000.

corporate strategy of Ammar Textiles is to hold these three units together and make the work with each others corporations. The corporate culture of these three units can be described as a team of workers united and motivated for achieving common goal. The business strategy of the company is to form strategic alliance with its customers like Levis, Timber land, asia penny etc... The company helps Levis to open office in Lahore.

In this way the company is try to hold global customer in its hand. Now they are planning to expand its area like Singapore to compete with India and Japan. The company specialize in manufacturing solid knitwear. Decentralized of work is their functional strategy.

Every department is responsible for its own decision making. The company have high quality of product and 100 % predictability in their goals. At the time when company goes for internationalization they adopt a Strategy in which they emphasis on quality control and follow all the international standards for production. The company is also known as well reputed in the knitwear industry.

The companys product strategy is to produce value added goods according to the samples of the buyers. The company is using Cost plus reasonable Profit strategy. The company have not marketing their own brand name so they are not involved in any promotional activities. When the company sets its unit Galaxy Textiles in Oman they employed the whole labor from Pakistan. So there are no cultural differences faced by the company. The company has effective and efficient distribution channel and provide the finished good to their customers in time.

The company has two distribution channels, The overall evaluation of the mother company and its two subsidiaries are as follows, In Oman the company is successfully achieving its goals objectives, but they are still little behind in achieving their targets. In Pakistan the company is almost achieving their targets, and the reason for this success is the skilled Labor, professional Managers, Quality control, and full determination in achieving the companies Mission Goals and Objectives. The major achievement of the company is that it is the only industry in Asia which have got ISO 9000 certificate. The Companies international focus creates a unique opportunity to meet the demands of the marketplace with targeted innovative strategies and brands. The company has good image among its buyers and a strong hold in knitwear industry, and also has a strong financial positions. The major strength of the company is that it is the only industry in Asia which have got ISO 9000 certificate.

Ammar textiles is the biggest quota share holder in the knitwear industry. The effective distribution channel providing on time delivery to its buyers There is no employees union in the company. Highly decentralized management helps the company to take timely decisions. The company has most advance technology for producing value added goods. The company has special employee training program for effective and efficient management. The strategic alliance of the company with Levis.

The company is bearing high labor cost in Oman. As the company is sending the whole skilled labor from Pakistan. The companys business operations are working successfully and that is the reason the management is overconfident, but in the long run this would create a problem in overall operations. Long working hours creates a problem for the labor that they are not been full determined in their work. The biggest opportunity for the company is to capture the biggest European Market. The company has a chance to increase their market in Japan.

Due to the SAARC the trade barriers are reducing the company can capture the Asian market. The company can promote there own brand name in the international market. The biggest threat for the company in the international market is the intense competition with INDIA, SRI LANKA, and BANGLADESH, due to the over all low cost. The Quota restriction creates barrier in the way of operating the business. Continues changing policies regarding exports and duties.

Ammar Textile is 100 % export oriented company and have created its name for quality and integrity with some of the big name of fashion world. The company is focusing on quality products which are delivered by skilled people the strategic intent is very much help for the employees to conduct their job efficiency. The overall operations of the company is performed successfully. The company should reduce their dependency on the US market i. e. from 80 to 85 % to 60 % and would increase in the rest of the market.

The company should go for European Market as there are lot of opportunity for them to excel with high quality standards. The company should Promote their own Brand name. Bibliography:


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Research essay sample on Sri Lanka Export Oriented

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