Posted on 14th Nov 2024 01:17:55 AM Marketing
INTRODUCTION
Cotton Textiles is the most important sector among all the import subsisting industries in Bangladesh. Its share, both in terms of value of product and employment it comes in a good position in the large manufacturing sector. The product of yarn is very important for the economy of Bangladesh. Its marketing is also needed in the context of our current position. Bangladesh is not potion of producing a high quality synthetic fiber. Capital and technology are the main constraints for it. But we have the find out the competitive advantages so that we can achieve our goal. Under the sponsorship of Ministry of Agriculture Bangladesh Cotton Development Board (BCDB) undertakes cotton production activities but it achievements is not acceptable. Country needs great support from government to meet the increasing demand of textile. Textile mills of Bangladesh have invested Tk. 10,000 crore for supplying yarn to the garments industry. Textile mills of Bangladesh supply 12%-15% yarn to the garment industry.
After independence in 1971, the government of Bangladesh nationalized the textile, industry and Bangladesh textile Mills Corporation was formed to cater the textile industry.
HISTORICAL BACKGROUND OF THE SUNDARBAN TEXTILE MILLS LTD. (STML)
The textile and apparel industry is expressing profound change throughout the world. The sequential development of textile and clothing industries obviously originates from Indian history. Bangladesh is an agriculture country. National economy of our country depends mostly on agriculture. There is a small contribution of industry on our national economy. Bangladesh Government had established several industries to avoid sole dependency on agriculture. In the essence the government established to fulfill the demand of cotton yarn some textile mills. In this context the Bangladesh Government established Sundarban Textile Mills Ltd.
The manufacturing site of STML is located at Satkhira. The help of China under supervision of BTMC it was established. There are two units in STML named Main unit and Neel Kamal unit. Main unit of STML was established in 30th June 1983. Its original production was 24,960 akus/spindles when it was established. It established on 29.47-acre land property. The main unit of STML began to its production on 1 July 1983. Again it was begun to its commercial production from the 6th October 1983. There was spinning unit when it was established with 260 looms. Being time passing it was losing its business and then the spinning unit layoff its production from the year 1995/96. At the same time there was established another textile unit named Neel Kamal. It was established on may 1995 which original production on 28 May, 1995 and commercial production on September 01, 1996. It was losing continuously from it’s establishment. The Main Unit earned Tk. 4.68 lac, in the 1983/84 and in the year 1992/93 it earned Tk. 4.68 lac. More over in the year 1993-94 it gained losses Tk. 349.47 lac. It has been gaining losses from the year 1993/94. And now it is going on losses.
To reduce the losses BTMC started services charge method. But loss is not driving away but reduced.
These are the overall situation of STML at a glance.
OBJECTIVES OF THE STUDY
The main objectives of this study are the followings:
1. To ascertain the overall performance on the basis of the factors, which are to be considered as determining factors to evaluate the performance?
2. To ascertain the effectiveness of inventory management.
3. To ascertain the factors which are to be considered to evaluate the overall performance of the mill?
4. To find out the efficiency in marketing of cotton yarn.
5. To determine the market share of STML.
IMPORTANCE AND SCOPE OF THE STUDY
Textile is an important sector in our country. As an agriculture country we produce many agricultural products. Cotton is one of them. Cotton products are very essential for the people of our country. it fulfills one of the basic needs. So, it is very important in the crying position in Bangladesh. Yarn is produced from new cotton. Silk yarn is also produced in our country. The market of yarn is very competitive. Under the competitive environment every company is trying to achieve competitive advantage. In order to gain competitive advantage every firm must evaluate its performance, time to time. My study will help to improve the marketing system of yarn and will create the employment facilities for the unemployed people. And finally it will help to evaluate the performance of the STML. For this I have taken to study on it.
Men have fine basic needs as they are food, clothes, houses, education and health. Clothes are the second one. I am studying on textiles. Clothes are made from yarn. Men have to meet up such kind of need. I am not able to meet up such kind of need. But I am trying to find out the actual situation on textiles. In textile industry two types of mills consist in Bangladesh among them there are 63 cotton yarn producing mills in Bangladesh. 95% of raw cotton is imported from foreign. That means 5% raw cotton is produced locally. Textile producing firms are in private sector and public sector. There are 14 textile mills in public sector and the rest in private sector. Public sector mills are gaining profit. I would not bot able to give solution for gaining losses but I can give them some recommendations, which may help the officials of the mill to reconfigure their value chain activities. It should be remembered that the previsions of the WHO Agreement on Textiles and Clothing (ACT) is likely to face stiff completion from its neighbors; for example India, China, Thailand and many other countries.
LITERATURE REVIEW
Some literature has been reviewed relating to the public sectors textile industry in Bangladesh to develop the research gap.
Au (1996), conducted a research, where he mentioned that public sector textile mills faces difficulty in procurement of raw cotton due to financial crisis, production volume is disturbed, cost of production is increased for it. He suggested that, BTMC should allocate more raw cotton for full capacity utilization of various public Textile mills. This will reduce the unit cost of sales, prices of yarn and the mill will be able to sell at a competitive price in our local market. Market research should be conducted by BTMC to know the customers demand and choice. It is also needed to co-ordination between procurement, production and sales for the managerial success of public sector textiles mills.
Banu (2003) conducted a study which examined that liquidity position of public sector cotton textile mills are not satisfactory. And position of six public sector mills are worst quick liquidity position having almost no quick assets to meet all current claims easily. In order to withstand the adverse liquidity crises in the particular mills under public sector, she suggest that availability of adequate working capital should be ensure, cash inflows should be increased through achieving operating margin and planned management of current assets.
Nurulla (1995) made a study which emphasis on the system on the system of the management board, management council, participative management and participative committee could not be put in test in the textile enterprises of public sector. Whatever the practice of the system was done, it was no in fact, it was no in fact, seen to be effective one. He also mentioned that industrial relations system in the public sector textile enterprises reveals a conflicting relations environment, which can negatively affect the performance of the industry.
Therefore, there is no study covering the topic performance Evaluation of public Sectors Textile Mills. Thus this study aims to cover this new research field.
CONCEPTUAL FRAMEWORK OF PERFORMANCE EVALUATION
Performance Evaluation is an essential part of planning activities that ensures goal are accomplished through the comparison through the actual and desired performance.
Evaluation entails the instamatic collection of descriptive is judgment information necessary to make defective training decisions related to selection, adoption, value, modification of various instructional activities.
• Performance means the daily activities, what a firm performs. Each firm expected to achieve its predetermined target. To achieve those target firm operates various activities. Which activities the firm operates are called performance.
Actual performance should be ascertained as closely as possible in terms of sales, growth, market share, profits, margins, net income, return-on investment and cash flow” — Strategic Marketing Planning.
To facilitate performance evaluation, typically include some sort of comparison standard such as desired or expected performance set forth in a budget or sales forecast. On the other hand, the standard might be the actual performance achieved in a previous period, comparable performances for similar units, sales people, or products in the current period or some other appropriate measures.
Performance evaluation means the comparison of firm’s activities with the predetermined standard. To achieve the target, firm analysis market demand, develop product & offer in the market for consumer satisfaction. Performance evaluation means to evaluate all these activities & find out the deviation between predetermined objectives actual achievement.
To evaluate the performance I will consider its daily operations, production target & achievement, product cost, profitability analysis, sales analysis, financial analysis & marketing efficiency analysis.
“A performance standard is an expected level of performance against which actual performance is compared” performance standard also appear in the form of budget constraints. That is a market is expected to achieve a certain objective without spending more than a given amount of resources.
METHODOLOGY OF THE STUDY
For the purpose of the present study, private sector of the textile industry has been selected. The study is limited to STML. The sample unit has been selected on a purposive sampling basis and also on the basis of the availability of information and managerial cooperation. For empirical analysis five year (from 2000-2005) various data and information have been taken into consideration. The study is based on primary and secondary data. Identify the relevant sources of data, application of appropriate data collection method and use of proper statistical test and techniques for the analysis of the collected data etc, are concerning methodology of the study. This is an analytical and descriptive research. The study was based on primary and secondary data.
A. Selection of the industry
I have selected Sundarban Textile Mills Ltd. based on communication facilities.
B. Data collection procedure
Department of marketing contracted with the Management of STML and permission was received from the Managing Director (MD) of STML to conduct the study.
1) Primary Data Collection Method
Primary data was collected from Sundarban Textile Mills Ltd., though direct method. To prepare a charming report, I have collected data and information by following three types of primary methods. These are described below:
Questionnaire Method
Collecting information for my practical training, at first, I made a questionnaire as the direction of my beloved and respectable teacher about the Sundarban Textile Mills Ltd. After preparing the questionnaire, I have collected the information and data from the officers, labors and other concerned people of my targeted Mills.
Interview Method
I have collected data and information through the interview. I have taken interview of the officers, executives and labors and they all responded all of questions friendly.
Observation Method
I was present physically in every unit of Sundarban Textile Mills Ltd. From this observation and with the help of my practical knowledge, I have collected some information and data about Sundarban Textile Mills Ltd.
2) Secondary Data Collection Method
The only source of secondary data was the official record of the factory. Others sources of secondary data are given below:
· Some published and unpublished research report.
· Books, Magazine and Papers.
· Business and Technical Journals.
· Public records and Statistics.
LIMITATIONS OF THE STUDY
Problems that were arisen during the research, the researcher should state such limitation to provide the reader with insight into special conditions pertaining to the work. In many times internship program becomes difficult due to shortage of some elements as a result our ideas remain simply bookish and our knowledge incomplete, to the end during my research of had forces some problems which are as under:
Limitation related with time
Enough time was not available for research. It could have only one month to collect data and to market a report that is not necessary enough to do this job.
Limitation related with lack of adequate amount of money
I was to face a lot of hindrances to do this research work. I had the lack of adequate amount of money so I could not be able to collect necessary information.
Limitation related with administrative secrecy
Each company must keep some secrecy about itself. To keep the secrecy much information were not disclosed to me, which might be helpful for my study.
Limitation related with secondary data
More secondary data about this unit were needed. But there were no more secondary data.
Limitation related with lack of necessary practical knowledge
It is a main limitation of my research work. I think I have no favorite environment to get necessary practical knowledge. So, it create a big difficult.
Unwillingness to response
While communicating with responsive persons, most of them were very busy with their daily work at that time.
Internship, Report, Performance, Public, Sectors, Textile, Mills, Case, Study, Sundarban, Textile, Limited, Bangladesh, Cotton, Development, Board, Historical, Background, Manufacturing, Satkhira, Conceptual, Framework, Performance, Evaluation, STML, BTMC
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