Abstract:
Many companies are facing a huge problem of decrease in profitability in their annual returns. The reasons are several, of whom one is the credit crunch which erupted from unite states of America and has hit many markets worldwide. Demand has decreased worldwide for different products and many companies are either merging or being supported by the governments to run properly because of weak financial position. Textile plays an important role in Pakistani economy as it forms a major portion of exports. But the decrease in demand has also affected the Pakistani industry especially the textile industry. In addition Pakistan is also facing energy shortage due to which numerous business activities are affected and textile is one of them. But nowadays textile units are either closed or are running on loss.
This study looks at one of the leading textile company, Margalla textile mills whose profitability has decreased due to above mentioned and many other problems. The study looks upon various problems internally and externally and recommends a strategy using strategy formulation framework.
