Quetta Textile Mills Case Study

Firms are able to survive in the industry if managers formulate and implement good decisions. Often, the effectiveness of a manager’s decisions determines his success as a leader. The success of a decision cannot be determined till after its implemented and monitored however several management tools are helpful in concluding whether a decision can be concluded as good or bad. Three of them have been listed below
1. Porter’s Model:
Quetta Textile Mills are an open system therefore the company’s decisions are influenced by its external and macro environment. External Environment consists of all forces outside the firm that may affect its decision. The external environment consists of two parts:
• The Macro Environment which includes government

It faces severe competition from both existing firms and new entrants. If Mr. Adnan had not taken up the order he would have lost an important customer to a competitor thereby losing his firm’s position in the industry. In order to survive every manager must keep a close check on his competitors and any new firms entering the market. He must try to obtain more customers, enter other markets, innovate and take on challenging tasks to stay ahead of his competition. By accepting the order Mr. Adnan is not only entering a new market niche but is also earning profit and improving the company’s

Mr. Adnan was asked to fulfill an order in 7 to 8 months when the order would originally require a period of one year. He was also asked to manufacture cotton of the highest quality in addition to using a new type of yarn which the company had not used before. Customer satisfaction is important for a firm in order to maintain a good reputation in the market and avoid losing out on loyal customers. This order earned Quetta Mills a reputation of a credible supplier and allowed them to enter another market abroad even though capacity had to be extended and machines had to be bought.
Even though the company’s ability to fulfill the requirements of the order highly depends on the presence of reliable suppliers, in the case of this decision, Quetta Textile Mills had greater leverage because of the fact that Pakistan’s economy is primarily agrarian, there were a large number of farmers across Punjab willing to supply high quality of cotton so the company had greater choice and no shortage of quantity enabling them to pick the highest quality raw materials for production.

2. SWOT Analysis
A SWOT analysis is a basic analytical tool that can be used to determine the strengths, weakness, opportunities and threats associated with undertaking a certain