01.

Reasons for Choosing Interloop:

⇒ I AM INTERESTED IN INTERLOOP SO THAT’S WHY I CHOOSE THIS

ORGANIZATION FOR PROJECTS.

⇒ THE SETUP OF THE ORGANIZATION IS VERY VAST SO IT IS VERY EASY TO GET

INFPRMATION ABOUT THE INTERLOOP.

⇒ AND IT IS ONE OF THE MOST IMPORTANT IMPORT AND EXPORT

ORGANIZATION OF OUR COUNTRY SPECIALY IN CURRENT SENARIO.

⇒ AND I LIKE THE STRUCTURE OF THE ORGANIZATION.

⇒ I THINK THERE IS VERY MUCH NEED TO IMPROVEMENT IN THEIS

ORGANIZATION, I THINK SO THAT WE CAN SUGGEST SOME BETTER THINGS TO

IMPROVE THE ORGANIZATION.

02.History of the INTERLOOP

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 The rise of Interloop epitomizes a true success
story.Interloop started out in 1992 with just 10
knitting machines, it now has 2300 machines
and a workforce of more than 8000, and has
transformed itself into one of the WORLD'S
largest sock manufacturer and exporter. It is a limited company
located in Pakistan's Industrial hub Faisalabad; also known as the
"Manchester of Pakistan". Interloop is an integral part of this
business community, continuously striving to revolutionize business
practices in this region.

Interloop is a complete vertical unit with all processes ranging

from yarn-spinning to packaging and it employs a centralized
computerized system which handles all aspects of operations. We
ensure quickest possible turnaround of shipments with strict
compliance to our customers' specifications.

In pursuance of our goal to achieve and maintain good quality,

Interloop has now set up a high-tech spinning unit that will ensure
finest quality yarn made from the best available natural cotton. This

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 project will enhance the value of money for our customers by
offering even more competitive rates to our clients.

Hard work and utmost commitment from its employees and

management, strict quality control measures, timely shipments and
reliable service standards have been paramount towards Interloop's
phenomenal growth. It is one of the very few firms in Pakistan with
an impressive social responsibility portfolio, realizing that a
commitment to sustainability in all areas of commercial activity
endorse the long term interests of a business

Year Established : 1992

Total Area of Factory: 3,232,000 SQ FT
(300,000 SQ MTR)
Total Covered Area Hosiery Division I: 486,600 SQ FT
( 45,223 SQ MTR)
Total Covered Area Spinning Division: 325,000 SQ FT
( 30,200 SQ MTR)
Total Covered Area Hosiery Division II: 634,530 SQ FT
( 58,972 SQ MTR)

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 03.APPLICATION OF OB MODEL

There are four major models or frameworks that organizations

operate out of, Autocratic, Custodial, Supportive, and Collegial:

o Autocratic — The basis of this model is power with a managerial

orientation of authority. The employees in turn are oriented towards

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obedience and dependence on the boss. The employee need that is met is
subsistence. The performance result is minimal.

INDIVIDUAL
When a new individual enter into an organization then the
bibliographical characteristics are being checked. As well as it
concern with the Interloop organization, in this way they examine
the personality of the individual, gender, marital status and age.
In Interloop organization when jobs have been announced there
description has also been mentioned. In Interloop gender not count
because vacancies are for both male and female and there is no caste
system prevailing in the Interloop organization and no age
limitations are in there.
They check the personality and emotion and on the behalf of these
they see the perception of the individual.
They see the motivation level of the individual and check the
ability to get any thing and check the learning power of the
individual and after that see the individual decision making and
come to know that either this person is right for the job or not.

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 GROUP LEVEL
In the group level communication does metter but as Interloop
telecom is a private organization so in this organization there is no
concept of union level as there is no group structure then there is no
conflict arise between management and employees and there is no
concept of work team and in the Interloop telecom there is no
involvement of power and politics. As there is no formulation of
group so there is no concept of group decision making in the
Interloop telecom sector.

ORGANIZATIONAL LEVEL
In organizational level as well as an organization consist on
thousands of employees so there is a culture develop in the
organization and it effect on the organization structure and design.
When organization structure and design change it impact on the
organizational culture and also on the human policies and practices
too. Organization level is high level and in this many human
resource involves.
As well as, its concerned with the human output related with
organizational, individual, and group level we see that:

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 Productivity increase when human input is high for the
organization mean that employees are loyal with their organization.
Motivation level of the employees are high and their decision
making power is also used for organization. If human input decrease
automatically human output will also decrease.
Absence is also a factor through which productivity can be effected
like if employee of the Interloop telecom are on leave then it will
effect the productivity.
Turnover is not good for an organization bacause if an employee
working in your organization from a long time and now he is going
to leave the job temporarily then try to retain that person into
organization because that person know the behaviour of your
organization and he can leak out your strategies. Turnover effect on
the output of the organization.
Satisfaction of the employee must be checked by the organization
because if the employees of the Interloop telecom will be satisfied
then their output will be high than the others employees who’s
satisfaction level is high than other employees.

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 04.Structure of Interloop:
CHAIN OF COMMAND

CEO

General
Managers

Senior
Managers

Managers

Assistant
Managers

Executive
Managers

Coordinators

Supervisors

Team
Members

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Organizational Chart

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 CEO
Mussadaq
Ali
GM

Manager
Manager Manager
Imports and
Production Deptt HR
Exports

Assistant Assisstant Assistant

Assistant Manger
Manager Manager Manager

Super Visors Hr Officers Dealer

Assistant
Officers
Supervisors

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 CEO
Mussadaq
Ali
GM

Manager
Manager Manager
Imports and
Production Deptt HR
Exports

Assistant Assisstant Assistant

Assistant Manger
Manager Manager Manager

Super Visors Hr Officers Dealer

Assistant
Officers
Supervisors

Helper

Helpers

Helpers

SWOT Analysis:

Strengths of Interloop:
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 Superior product quality for customers.
Better customer relationship than competitors.
Extra features and services.
Strong financial base.
Products innovations ongoing.
Good reputation among customers
Good packages according to the target market.
Management is rational and understanding the situation.
Low price as compared to quality provided.

Weaknesses of Interloop:
Less time in market as compared to major competitors
Less coverage as compared to major competitors
Less experienced employees than competitors
Not able to capitalize on start

Opportunities

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• The footwear and apparel industries will benefit from the currently
strong economic backdrop in the United States. Spending is high and is
expected to result in sales growth industry-wide.
• Competition is fierce at all levels in within the industry, especially
among the leaders. This creates a sense of security for the companies that
have been able to create a niche.
• Cost cutting due to restructuring of operations will give many
companies the chance to price products more competitively.
• One area in the industry that is ever changing is research and
development. The strong departments will surely capitalize on the trends
of tomorrow if their efforts are successful.
• Increasing financial recovery in overseas markets proves to be an
area of expansion for the footwear and apparel industry.
• E-tailing, or customer-designed internet merchandise, is threatening
the traditional distribution channels, thus eliminating the "middle-man"
distributors and allowing for increasing profitability.
Threats
• The industry has reached a level of maturity. While style and
technology in apparel and footwear has reached a leveling-off point, the
important aspect now is for companies to differentiate their lines.

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• Inflation is looming over the U.S. economy, which may spark a
cutback in consumer spending.
• Consumers are becoming savvier and may lean towards discounted
items.
PESTAL ANALYSIS

POLITICAL AND LEGAL FACTOR:

The government plays an important role in the operation and
manufacturing products and services in terms of regulations. Following are
some of the factors that could cause Interloop brands to differ materially from
the expected results. These are:
Due to the unpredictable political and governmental changes rules and
regulation are changed quite frequently. Currently government has increased
the taxes in the telecommunication sector that will also a harder in the smooth
operation of Interloop telecom operation.
Before WTO implementation for deregulation of different sectors of the
economy. Pakistan government taken the step to regulate the telecom sector
by the authority of PTA. There are two types of Regulators held by PTA; the
first is called the “Economy Wide Competition Regulator” as the Monopoly
Control Authority.
Also the political governmental rules can not be completely applicable
in this sector due to the regulation authority of PTA.

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 Now a day’s Pakistani environment is instable due to political clashes
among political parties. Inside country war and drown attacks in north frontier
areas.
This political instability has led to uncertain environment in the
country, which is a threat for any business including Interloop telecom.
Environment of telecom is investor friendly and have great potential to gain
profit. The mobile phone teledensity which had reached to 55.80 by the end of
December. Still, it means that about half of the population may possess the
phone.
In Pakistan, the total number of subscribers which had touched an all-
time high figure of 90.52 million in October 2008.
Due to huge budget deficit and low growth of economy government
has increased the taxes in telecom sector. Pre-paid customers were charged 14
per cent withholding tax on every new load, which was deducted in advance.
The customers were also paying 15 per cent sales tax on every call. However,
the present government increased the sales tax from 15 per cent to 21 per cent
for mobile users by declaring the mobile phone a luxury item. These kinds of
threats are hindrance in the way of Interloop brand.

ECONOMICAL FACTOR:
Economic conditions are influenced by political and government
policy, being a major influence affecting these can affect the Interloop
telecom strategies. These can affect how easy or how difficult Interloop
telecom is to be successful and profitable in the economy.

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 Over all economic conditions are not very sound .The country risk of
Pakistan goes to 3 which is alarming situation for Pakistan. Due to mistrust in
the Pakistan environment the foreign direct investment has been declined.
This is the thread for Interloop telecom because not new investments in being
carried out in this environment.
Due to inflation the cost of doing business is also gone higher. Inflation
remains the biggest threat to the economy, jumping to 7.9% in 2006 to 23.3%
in first quartile of 2009. This increasing ratio will hurt the buying power of
the consumers that will overall reduce the demand for the products.
SOCIAL FACTOR:
The socio cultural environment summarizes demand and tastes, which
vary with fashion and disposable income, provide opportunities and threats
for Interloop brand.
As Pakistan is an Islamic country and people are very strict in case of
Islam any thing against the philosophy of Islam on either print or electronic
media are treated as against Pakistan. Most of the people dislike anything
extra-ordinary or something which sabotage their culture or subculture.
Pakistani society is largely multilingual and multicultural
The Pakistani people are more social and want to remain in contact
with other people. They celebrate lot of festivals like Jashn-e-Baharan, Eid
Celebrations and other cultural festivals. On these festivals they make calls to
relative and one of the key issues is sending SMS regarding the event. This
will influence the demand for the Interloop product

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 Increasing globalization has amplified the influence of "Western
culture" in Pakistan. The life style of Pakistani people is changing rapidly.
People are more conscious about status pat most all people purchase
multimedia mobile phones. And also there is trend for Black berry sets by
youth which will help in enhancing their product and services.
The total population of Pakistan is approximately 16 billion. The
population is increasing rapidly which increase the number of cellular usage
and help in projecting high profits

TECHNOLOGICAL FACTOR:
Advances in technology can have a major impact on business success.
Technological change impacts socio cultural attitudes as well as on economy.
Companies have technology with which they can compete in the
Pakistan and now companies are investing in their infrastructure to not only
expand coverage but also to upgrade their existing systems.
The current focus in cellular industry is coverage and establishing
franchises which has a positive effect on the Interloop brand
Introduction of CDMA technology in the Mobile SIMS which is also an
Opportunity for the Interloop brand.

Product Mix

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 Product
Not only the largest and finest quality sock manufacturer in South Asia,
INTERLOOP also has a huge and flexible production capacity that
enable us to offer a wide range of high quality socks in thousand of
styles for all age groups.
INTERLOOP offers a wide range of socks in most needle categories,
with specialization in 108N, 120N, and 168N for Boys, Girls, Ladies and
Men. Although we feature cotton terry socks, we can offer products
made with Coolmax, Cordura, merino wool, rayon, SORBTEK, Modal,
Tactel Nylon, Friction free Polyester, Bamboo Yarns, Super wash Wool,
Air max Cotton Blend, Sulcool, Micro Nylon,E-Vap , Far Infra Red,
polypropylene, acrylic, Tactel and many other unique fibers.
Our broad variety includes a wide selection of sports and casual socks
made from the finest Pakistani cotton and many other natural and man-
made yarns. All sports and casual styles are featured including:
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 • Walking
• Running
• Skiing
• Tennis
• Soccer
• Hiking

We can provide our customers socks, covering a broad spectrum including the
finest quality merino wool socks from special Australian wool to 3-D infants'
socks using a seamless toe closure.

STRATEGIES
CORPORATE LEVEL STRATEGIES
During the time of Interloop the corporate strategy was to deliver
the right kind of foot wear to the athletes: the foot wear that suits
their needs. The focus was on manufacturing. Even after the death
of Interloop, in lieu of aggressive competition from Adidas and
Nike there was no change in the strategy and the management kept
its focus on manufacturing. In a business driven by cutting edge
marketing Interloop’s senior management ignored market changes,
taking a conservative course while letting Nike steal its market
leadership with innovative, aggressive marketing and products.
Interloop executives lost touch with their markets, which resulted in
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 dwindling of Interloop market share from an all time high of 70%
to mere 2%.

In February 1993 Interloop acquired Sports Inc a marketing

company founded by former Nike executives Rob Strasser and
Peter Moore. Sports Inc was later merged with US operations of
Interloop.

BUSINESS LEVEL STRATEGIES

Considering the business level strategies of Interloop, Interloop
follows product development and Market development strategies to
enlarge its domain. Interloop while following market development
strategy freshened up the footwear line and sponsored tournaments
in “streetball”, a street version of basket ball. It continuously
follows product development strategy with three new types of shoes
hitting the market this year.
Under the new structure of Interloop each of the three divisions will
produce its own footwear and apparel lines. Each division has been
structured around different Market segments rather than product
areas and each division will follow a different strategy.

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 05.ORGANIZATION COMMUNICATION
Communication Structure:
To meet the communication needs Interloop has used the best
communicatin technology Interloop adopt the communication

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 technology on the basis of effectiveness not on cost.As the have
acquired all the technology from Ericcsson that is known to be the
world’s best vendor.There are some types of communication
involves in organization:

Telephone
system

wireless computer

Types of
communicatio
n

Formal
Fax machine
presentation

Group meeting

Telephone System:
Management employs a telephone operator to use the switchboard
in order to roué out incoming calls to the various extention

Computer:
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 It is used for ending and receiving E-mail messages and viewing
business product.Any information they want to give is done through
proper computerized system.

Fax Machine:
Interloop Telecom has the universal fax number 111111322 it is
not only for employee but for the facilitation of costumer as well.

Group Meeting:
Group meeting is one of the usual practice in Interloop Telecom
there are plenty of conference room and refreshers room available
for such activities.
Some time ther are meeting of supervisors with team, some time
between floor manager and supervisors and some time between
manager and floor manager and so on.
Formal Presentation:
Whenever a department comes up with any things that needs to be
communicated there is always a formal presentation for that does’t
matter if the presentation is subjected to first line or for middle or
higher managemen
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 06.Motivation Factors adopted by Interloop

INDIVIDUAL:
1.Project Care:
Project Care means Celebration of employees. The company
pay for all celebration.

Project care Evening:

Project care start in 2006. It is celebration day
of employees. All the employees get together and celebrate an
evening at some best hotel in Faisalabad like in USMANIA
HOTEL, SERINA etc. The company pay for this celebration all.

Family Visit:
All the family members invite for visit Interloop. They
see the environment of interloop and company give them special
Lunch or Dinner with their superiors.
Family Day:

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 It is full day fun given to family of employee. They can go
to hill station or anywhere else for fun in Pakistan. The company
pay for it.
Anniversary Leave:
Marriage Anniversary leave given and company pay salary
on this leave. All the day they enjoy their anniversary.
2. Workplace health and Safety
Knitting Machines:
These machines are of 10d power. It can
create problem if the power increase for hearing of employees.
Interloop manage this and check them if there power is increasing.
Sometime they rotate the employee for some days.

Heats:
Interloop manages all types of heats. Because heat causes
many diseases. They always watch on machines for safety of
employees.
Injuries:
Before 2006-07 there are many injuries problems in
Interloop. But now there is no major injuries in Interloop but little
bit injuries are held but sometimes in a year.

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 3.Reward and Recognition:
Everything defined by interloop. Like
proper salary, work and Interloop Policies.
Rewads like long-term employees are being rewarded. If a person
do his work best company give him reward like work assigned for a
worker and time is given like 3 days and he did his work well all
and then he is rewarded promotion etc.
Most of the companies rewarded subordinates work to their bosses.
Interloop has recognition of all employees for their work done. Like
if subordinates work 70% and Boss work 30% then they are
rewarded according to their work done. Interloop checkout the team
work and recognized them. If any employee done very good work
he is rewarded and interloop set a photo of that employee on
Website
4.Others
Bonuses:
Interloop set bonus for employees. Employees are assets of
Interloop their first motive is to motivate employees by bonuses.
Buses:
Very nice Conveyance facility for all employees. Peoples
wants go their because they have very good conveyance facility.

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 Mess Facility:
Interloop is subsidies mess
Social Security Facility:
Employees job security and their life’s
security is very strong.
Gratuity:
Company manages gratuity fund for welfare of employees
Provident Fund:
Provident fund given after their retirement.
GROUP:
Reward and Recognition Project care Evening are given to
employees for their motivation.

07.CONFLICTS HANDLING PROCESS

INCOMPATIBILITY PERSONALIZATION

STAGE-1 STAGE-2

Perceived conflicts
DysFunctional conflicts
(Group level
conflicts)

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 CONFLICT HANDLING

STAGE-3

Collaborating

Avoiding

Compromising
OUT COME BEHAVIOUR

STAGE-5 STAGE-4

Increase the
performance Group Behaviour

08.Organization change

Organizational change mean change in the organization due to some

factors and these change factors are as follows which are using in
the Interloop telecom:
TIME:

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 In the Interloop telecom change come time to time. When
you make decision them you have to keep in view the Time factor
because there must be change in any organization with the passage
of time.
WORK FOR DIVERSITY:
In Interloop organization the people who are working there
are from different areas like in Bangladesh and in Pakistan people
are from different geographic and style of living is different from
other.
TECHNOLOGICAL CHANGE:
In this we see that time by time there’s change in the
technology and people like latest technology which work more
efficiently and facilitate more to the people.
ECONOMIC FACTOR:
Economic of the country effect on the organization
behavior.
COMPETITION:
Now this era is the era of competition. In Interloop
organization it compete the other telecom industry and the product
and services of the Interloop with other.
Interloop telecom is in oligopoly situation in which they are
competing to three to five competitors.
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 SOCIAL TRENDS:
Culture of the organization change with the passage of
time because it due to change in society and society change culture
and then culture effect on the values and norms.

09.Organization Stress Management:

POTENTIAL INDIVIDUAL CONCEQUENCES

SOURCES DIFFERENCE

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 1-ENVRONMENTAL 1-PHYSIOLOGICAL
SOURCES  Perception SYMPTOMS

 Economical  Job experience  Headache

uncertainty  Blood pressure
 Technological  Education
change
 Competitors  Hostility 2-PSYCHOLOGICAL
 Social factor SYMPTOMS
 Environmental
factor
 Legal factor  Depression
 Anxiety
2-ORGANIZATINAL  Frustration
SOURCES

 Lack of 3-BHAVIOURAL
communication
 Late sitting  Productivity
 More work in short decrease
time  Turnover
3-PERSONAL SOURCES increase
\Family problems  Absentism
 Financial problems increase
 Personal problems
• Desire
• Unpridict
situation

BibloGraphy:
www.interloop-pk.com
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 www.google.com
www.scribd.com
www.amcy5.com
www.alseek.com
References:
Muhammad Sajjad
Manager Imports and Exports

Imran Riaz
Officer OD Department

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