Interloops Project by | White Tigers

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Principles of Management : MGMT3313

Assignment Phase 1
Group Name:
WHITE TIGERS

GROUP MEMBERS:
Abdul Majeed
HM Shakir Abdullah
Muhammad Ahmed
Bilal Ahmed
Azeem Zahid

0009
0027
0028
0022
0038
MCOM5A

Submitted To:
PROF. Saqib Masud

Submission Date:
02-02-2016

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ACKNOWLEDGEMENT
I have great sense of gratitude for the most Beneficent and Merciful Allah who has
Always helped me in all matters of life .I tried but He rewarded me more than I Deserve.
A work is never a work of an individual. I owe a sense of gratitude to the intelligence and
cooperation of those people who had been so easy to let me understand what I needed from time
to time for completion of this exclusive project.
I want to express special gratitude towards Mr. Saqib Masud Lecturer of Principle of
Management for giving us such a unique project.
Last but not the least I would like to forward my gratitude to all the people who stood by me
(HM Shakir, Muhammad Ahmed, Bilal Ahmed, Azeem Zahid) without them I could not have
been envisaged the completion of this project,
their cheerfulness and guidance is an asset for me .I am especially thankful to the Interloop
staff and particularly.
Atta Ur Rehman (Father of Muhammad Ahmed)
For Refereeing us,
Madam Sabra Gul (Operation Manager)
For Giving Us All the essential Information's.
Ahmed Bhatti (The Auditor)
For Helping us in visiting The Site and letting us know how it works

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Executive Summary
This report is analysis of Interloop, one of the worlds largest socks manufacturer with an annual
company turnover exceeding $200 million
The report is according to best of our perception and the knowledge
gained via the books and the courses has been tried to be implemented in the due
courses of the business,
For the convenience of the reader We have tried our level best to make the report
comprehensive and elaborative.
The processes involved in the development and management of Interloop
have been studied thoroughly and the things We have learned will enhance our
capabilities and will polish our managerial skills..

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Table Of Contents
Sr No
1
2
3
4
5
6
7
8
9
10
11
12
13

Descriptions
Acknowledgement
Executive Summary
Introduction
Hierarchy
Departments
Products
Production Process
Customer/Supplier
Score Board
SWOT analysis
Success factors & Limitations
Conclusion
References

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No
2
3
5
7
8
9
10
11
14
15
17
19
19

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Introduction:

Name of Company:
Company Registration Number :
Company Tax No:
Status of Company:

Interloop Limited
26985
0688555-1
ESC

Interloop started out in 1992 with just 10 knitting machines, now has 3800 machines and a work
force more than 13000, Interloop limited has transformed itself into south Asia's largest socks
manufacturer and exporter offering the highest quality socks at a level of service, it has an annual
turn over to the tune of $250 million. It is a complete vertically integrated organization with in
house spinning. yarn dyeing, knitting and finishing facilities. it employs a centrally computerized
system ensuring quickest possible turnaround of shipments in compliance with customers
specification. Hard work and utmost commitment from employees and management, stringent
quality controls measures, timely shipments and reliable service standards have been paramount's
towards Interloops phenomenal growth. at each point of operations, Interloop ensures strict
quality control measures, timely shipments and reliability of service. Interloop has as impressive
social responsibility portfolio, realizing that a sustainability in all areas of commercial activity,
endorses long term interests of a business.
Interloop believe in excellence, customer focus and competitiveness in all areas of business and
are serving clients successfully from various locations and regions of the globe. Their
manufacturing Units are in Pakistan (Faisalabad and Lahore) and Bangladesh. With the main
Marketing office in Pakistan, they have two offices in USA (Winston Salem) and Netherlands
(Almelo).
Their dedicated and profession anal team and the implementation of best industry practices give
them a competitive edge in the prevailing competition and in better serving the customers
beyond their expectations, increasing trends and growth show confidence of customers in the
company business.
Production Capacity:
Knitting per month
dyeing per month
Packing per month
Minimum lead time
Yarn dyeing per month
spinning per month

3.4million dozens
3.5 million dozens
3.5 millions dozens
45-60 days after approvals
285 tons
2400 tons

Mission Statement:
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To be an agent of positive change for the Stakeholders and Community by pursuing an Ethical
and Sustainable Business.

Vision 2015:

We will Strive to be one of the Leading Players in the globe Hosiery Business by providing
best Value to our Stakeholders through Improving our Processes to match Best international
practices.

Vision 2020:

To Double our Turnover by 2020,through value addition. process improvement & nourishing
Talent

Hierarchy:

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Inter Loop Company follows vertical policy making system. All the goals and strategies are
made by executives of the company. Their executive bodies are responsible for that all. The
lower management performs operational tasks. The planning is done from top to bottom in
vertically direction.

Musadaq Zulqarnain
Chairman Of Board

Musadaq
Zulqarnain
CEO/Directo
r Marketing

Navid
Fazil
Chief
operatin
g Officer

Jahan
Zaib
Khan
Banth
Director
Technical

Corporate
Sec

Hosiery
Divisio
n 03

Energy
division

Spinning

Finance
&
taxation

Hosiery
Marketing

MIIS

PMD

P&S

SCL

HR &
Admin

Ops HD
01

Internal
Audit

EHS

Ops HD
02

Merchandisin
g

R&I

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Tariq
rashid
Malik
Director
Sourcing

Muhamma
d Maqsood
Director
Finance
&CFO

Ahmad
Riza
Siddiqi
Executiv
e
Director
SS

00

Azhar
Sadiq
Executive
Director
Ops

Processing
development
& yarn
dyeing

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PPC

Satelite
Unit

QA

Departments:

The Departments of Interloop Can be named as:

Production.
Research and Development (often abbreviated to R&D)
Purchasing.
Marketing (including the selling function)
Human Resource Management.
Accounting and Finance.

Products:

Interloop manufactures and exports a variety of sports and dress socks. According to them they
use 100% pure cotton, cotton blends, Acrylic, coolmax, lycra and Duradry (Polyprolyne wicking
effect) yarns to produce white, melange, mouline and colored socks in both Real heel and Pouch
heel.
All sports and casual styles including:
Walking
Running
Cycling
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Soccer
Gymnasium
Diabetic
Aerobic
Full & Half Cushion
Non Cushion
Bobby Socks
Rib Socks
Woolen Socks
Heat Holders
Heavy Slouches
Coolmax
Ultra Fresh Treated
Army Socks
Knee High Diabetics

Production process:
The Production Process Of Socks can be Drawn As

Yarn
Inspection
Preparation
Dyeing
on Cone Type
Bleaching
Labling
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Knitting
Sewing or
Boarding
Linking and
Clipping
pressing

Quality Check
Inspection
Pre-turning
Pairing

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Packing

Dispatch

Competitors:
Their Main Competitors are:

Kamal Hosery
Gelal Turkey
kahatex Indonesia
Henes South America.

Main Customers:
Their Main Customers are:
Wall Mart
C/K
Nike
Their Business is totally based on B2B means they don't sell the end users but only deals
with the retailers and 99.99% of their business is based on Export.

Suppliers:
They Purchased Most of the raw materials for their product from
Pakistan
but Also import some from
India and from other countries.

Decisions Making:
For decision making process
For the top level management they held
Annual General Meeting in November and in this meeting they decide

Achievements of last year

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Goals for next year

long term goals of the company(For five years)

Centralized decision making system is used here as shown below

Recruitments:
Almost After every quarter depend on the needs of the department they give ads in
newspapers for vacancies. they accept online job applications as well.

ERP Training:
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Interloop schedule ERP training sessions for selected employees recommended by

department heads with regular interval for optimal utilization of ERP.

Score Cards:
They Judge their Monthly and annually performance By elaborating it on score cards.

It provides a framework that not only provides performance measurements, but helps Interlooop
planners identify what should be done and measured. Moreover, it enables executives to truly
execute their strategies.

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Swot Analysis:

Strengths:
Cost Advantages:
Lower costs lead to higher profits for Interloop Limited. Because of their past experience
they know how to undercut rivals on price.

Unique products:
Unique products help distinguish Interloop Limited from competitors. Interloop
Limited can charge higher prices for their products, because consumers cant get those
products elsewhere.

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Financial Leverages:
Financial leverage allows Interloop Limited to use their balance sheet to expand their
business and increase their profits

Economies of Scale:
Economies of scale is the cost advantages that Interloop Limited obtains due to size. The
greater the volume, the greater the advantages.

Technology:
Superior technology allows Interloop Limited to better meet the needs of their customers
in ways that competitors cant imitate.

Opportunities:
New technology:
New technology helps Interloop Limited to better meet their customers needs with new
and improved products and services. Technology also builds competitive barriers against
rivals.

Emerging markets:
Emerging markets are fast growing regions of the world that enable Interloop Limited to
quickly expand.

New markets:
New markets allow Interloop Limited to expand their business and diversify their
portfolio of products.

Weaknesses
Online presence:
The online market is essential for displaying information
and selling products. A weak online presence can result in
lost opportunities for Interloop Limited.

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Threats

Bad Economy:
A bad economy can hurt Interloop Limiteds business by
decreasing the number of potential customers.

Political Risk:
Politics can increase Interloop Limiteds risk factors,
because governments can quickly change business rules
that can affect Interloop Limiteds business.

Gov't Regulations:
Changes to government rules and regulations can
negatively affect Interloop Limited.

Substitute Products:
The availability of substitute products hurts Interloop ltd ability to
raise prices, because customers can easily switch to another
product .

Success Factors:
Employee Attitudes:
A key business success factor is a motivated and committed workforce. Without that, no amount
of vision and planning will provide the framework for growth and prosperity. Attitudes drive
behaviors that result in change. If your employees do not take initiative, make suggestions,

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happily stay late when necessary and strive to do their best work all the time, your business will
certainly stagnate. And Interloop got that factor because of is proper management.

TECHNOLOGY UTILIZATION:
Interloop is utilizing technology to open up new markets and to serve customers, increase
efficiency and for new product development which give it the better chance of besting
competition.
GLOBAL FOOTPRINTS:
To Survive in the market its Interloops strategy to keep an eye on global trend any innovation
new technology any new fashion or every change that can effect its business. Many firms make
the mistake of not carefully overseeing their marketing trends.
MISSION & GOALS:
Interloop has a clear vision and mission. The organization has
clear goals and concrete, attainable objectives. The organization
has a commitment to science-based practices.

COMMUNICATION:
The organization establishes open and frequent communication
with Employees and colleagues. The organization establishes
informal and formal communications links. The organization is
represented by a skilled communicator. The organization
develops newsletters and holds meetings and conferences.

RESOURCES:
The organization is supported by diversified funding streams. The
organization has stable funding.

lIMITATIONS
Lack of trained labor :
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Well its common issue especially in Pakistan because of low literacy rate untrained staff is no
doubt an issue and can be listed as hurdle.

Energy :
Load shutting Gas Issues is an hurdle in every field of life and same as in this case.

Physical infrastructure :
Poor infrastructure Roads, Traffics issues can also be counted as A limitations for growth.

Bureaucratic hurdles :
Gov't interventions, Political instability and political influence in every field also stop us from
growing.

Institutional Rigidities:
Lack of poor laws Implementations and security issues can be considered as an hazard in
business growth.

Conclusion:
Interloop has founded highly structured automated system which can only be beneficial in the
long run if they follow it sincerely and improve it continually.
We have examined Performance Management System, Strategy Map, performance in terms of
Balance Scorecard actual versus target objectives in the form of statistics and graphically too.
Interloop has performed very effectively in Financial, Learning & growth perspectives of
Balance scorecard while they have performed average in Customer perspective and need
improvement in Internal Perspective.

References:
www.interloop.com
www.google.com
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Mam Sabra Gul (OperationManager)

Thanks White Tigers For Supporting Me.

Regards, Abdul Majeed

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