Posted on 10th Sep 2024 10:55:40 PM Management
Chapter ONE
Introduction
Man is the creature which has thirst for knowledge but only theory cannot fulfill that thirst. Through practical work and experience theoretical knowledge is made more useful. But practical field is not a bed of roses; it requires various practical skills, experiences, aptitudes, etc. In the job market, as a newcomer 1 have been assigned to acquire such types of knowledge to adjust with the most dynamic and challenging job. For this internship is essential for acquiring practical knowledge. For getting such types of practical experience, I went the Usha Silk Industry, Sapura, Rajshahi.
Background of the issue
Rajshahi division is in the northern part of Bangladesh has an area of 34513 sq. km and a population of 29.99 million. There are 16 districts and 57 municipalities under Rajshahi. It is famous for archeological and historical sites.
Rajshahi is a city in Rajshahi District in northwestern Bangladesh, and is one of the most peaceful areas of the country.The river Padma,one of the major rivers of Indian subcontinent runs along the city. Rajshahi has a population of 700,000. It is the headquarter of the Rajshahi division, one of the six administrative divisions in Bangladesh. Rajshahi municipality established in 1876, one of the first in Bangladesh. Rajshahi is located near many ancient capitals of Bengal,notably 'Lakhnoiti' or 'Lokhnaboti' and 'Pundra'.
Rajshahi is home to many educational institutes, and is often referred to in Bangladesh as 'education city'. It is famous for pure silk, mango and lichi. Attractive silk products are cheaper in Rajshahi and is often referred to as the 'silk city'. There are also a number ancient mosques, shrines and temples in and around Rajshahi. The city of Rajshahi was declared as the happiest city in the world by the World Happiness Survey in 2006. The city has very peaceful environment.
Rajshahi town is situated besides the river Padma. In monsoon the great Padma is in full spate with its tides and waves whereas in winter it dwindles and you will feel the desert by the side of river. Rajshahi Division is famous for archeological and historical places like Mohastnangor, Paharpur Buddhist Monastery, Kantajee’s Temple, Ramshagar Dighi, Choto Sona Masjid, and Shopnopuri etc.
Objective of the Study
1. To acquire practical knowledge regarding marketing practices of Usha Silk.
2. To find out various activities/services rendered by the Usha Silk industry.
3. To know either the service efficiency of the Usha Silk is effective or not.
4. To identify the strength, weakness, threats and opportunity and observe future growth prospect of this industry.
5. To recommend to overcome the difficulties.
Problem of the Statement
As a business executive of the future, we should have to gather more experience beside our study. We should not concentrate our lessons only in classroom but to implement it in practical life that will help us in our professional life. A clear objective help in preparation of well decorate report in which others take right type of decisions. So, identifying objectives is very much important.
Importance of the Study
Survival is the fittest. Due to the ever-changing nature of the environment on business enterprise can be successful in a long term among gaining sustainable competitive advantages over its competitors which are possible only through preparing, implementing, evaluating and controlling effective marketing plan and taking effective strategies implement them in practical ways.
Usha Silk industry is one of the silk industries, which is producing and marketing in Bangladesh market as well as foreign markets. Because of the lack of proper marketing plan and effective strategies it has not yet achieved required position in the market place. It is really critical to gain the market share and to tap the growing market opportunities through outperforming the competitors in the domestic and selected foreign markets. In order to develop a creative and effective marketing program needs to understand marketing plan. Strategies and tactics and effective knowledge of implementation are essential. This study will be helpful for the marketers and policy makers involved in this industry. Especially it will be an aid to Usha Silk industry's management authority to prepare an effective marketing plan to grape the opportunity
Limitation of the Study
Limitation means the conditions which have the negative impact on the works. During the period of my studies I face a lot of problems the major limitations of the report arc as follows:
Lack of practical experience about study: Most vital limiting factor is lack of knowledge and experience about the practical marketing activities. It is the first time to perform any practical work.
Shortage of time: My Term paper program requires at least one year. Because most of the renowned organization do not permit for lesser time than three months. But I have got limited time. And I had to continued scheduled classes of the department and do the work. Due to the time constraints it was quite impossible for me to collect &a\a on all areas of the market to conduct my internship work properly.
Insufficient information from primary and secondary resources: While direct communicating with respondents some of them were not interested to response. Also employees were very busy. The relevant information was not available in everywhere because of their secrecy. It has reduced the acceptability of the report to some extent.
Lack of money: As I am a student, it is difficult for me to collect sufficient fund for this research work. And authority allocated fund is not sufficient. So, I have faced financial problem.
Chapter TWO
Conceptual Issues
Silk Industry is important earning source of any country. Bangladesh is a developing country. There are many Silk Industry in Rajshahi city as well as Doel, Adarsha, Antar, Sunflower, North, Bengal, Amena, ,Fousdar, Naoshad, Tanzil, Usha Silk etc. Silk industry are better position and good facilities.The Rajshahi city is also good facilities on Silk industry likes Doel, Usha Silk , Naoshad etc.
Definition of key Terms
Education in the largest sense is any act or experience that has a formative effect on the mind, character or physical ability of an individual. In its technical sense, education is the process by which “society deliberately transmits its accumulated knowledge, skills and values from one generation to another.
I now need to defined management, in other to highlight the importance relevance, and necessity of studying management.
Management
Management is the process of working with and thought other to effectively achieve organizational objective by efficiently using limited resources in a changing environment.
According to Terry and Franklin, “Management is a distinct process consisting of activities of planning, organization, actuation, and controlling performed to determine and accomplish stated objectives with the use of human beings and other resources.’’
Five part of this definition require closes examination-
• Working with and thought others.
• Organization objective.
• Effectiveness versus efficiency.
• Limited resource.
• Changing environment.
Managerial Functions
For more than half a century, the functional view has been the most popular approach to describing what managers do. It has been popular because it characterizes the management process as a sequence of rational steps. Henry Fayol, a French industrialist tuned writer, became the father of the functional approach in 1916 when he identified five managerial functions, planning, organizing, command, co-ordination, and control.
View of eight managerial functions will describe what managers do and view and preview what lies ahead in this trend.
Planning: Commonly, referred to as the primary management functions, planning is the formulation of futures courses of action. Plans and the objective on which they are based give purpose and direction to the organization, its subunits, and contribution individuals.
Decision Making: Managers Choose among alternatives censes of action when they make decisions, making the correct decision in today’s complex world is a major’s management challenge.
Organization: Structural consideration such as the chain of command, division of labors, and assignment of responsibility are post of the organizing function. Careful organizing helps ensues the efficient use of human resources.
Staffing: Organizations are only as good as the people in them staffing is resuscitation, Training, and developing people who can contribute to the organize.
Communicating: Today’s managers are responsible for communicating. Other Employees the technical knowledge rules and information required to get the job done. Recognizing that communication is a two way process, managers should be responsive to feedback, and upward communication.
Motivation: An important aspect of management today motivation individuals to pursue collective objective by satisfying needs and meeting expectations with meaningful work and valued Rewards.
Leading: Managers become inspiring leaders by serving as role models and adapting. Their management style to the demands of the situation.
Controlling: When managers compare desired result with actual results and take the necessary corrective action, they are keeping things on track through the control function. Deviations from post plans should be considered when formulation new plans.
Wastewaters are disposed of into the wastewater drains without infrastructure for treatment.
Internship by Rajshahi City
Internships provide real-world experience to those looking to explore or gain relevant knowledge and skills required to enter into a particular career field. Internships are of relatively short term with the primary focus on getting some of the job training and taking what has been learned in the classroom and applying it to the real world. Trainees generally have a supervisor who assigns specific tasks and evaluates the trainees’ overall work. For internships for credit, usually a faculty sponsor will work along with the site supervisor to ensure that the necessary learning is taking place.
Methodology of the Study
Problem to solution, there is a long way. How the be done or what is the way of doing the work is called methodology. In research study a methodology is strictly followed. As I conducted an internship program so I have followed the following ways.
Method of Data collection
I have used the following method to collect data.
Secondary Data
I have gone through the annual report, various publications, and show room recorded to collect secondary data.
Chapter THREE
Database
Sources of Data
The information and data for this report have been collected from the secondary sources. Secondary sources of data are-
• Annual report of Silk industry in Rajshahi City
• Website of the Silk industry
• Annual report of the firm
• Published papers BSCIC
• Office record Statistical tools used for Data Analysis
• Several books and periodicals related to the Silk industry
Nature of Data
Secondary Data: Data collected from journals, internet, Books etc.
Tools of the study: Different types of instruments are used to collect secondary data for our study. These tools are– Quantitative.
Data collection Method: The research tools that is, quantitative were distributed to the respondents under the supervision of the members of the Research group. Besides this data also collected through observation.
Data Analysis method: We analyzed and interpreted data with statistical tools and techniques as well as internet, Ms Word, Ms Access
Historical background of silk Industry
According to historical evidence, silk was discovered in China. After China, Korea is the first country where Chinese immigrants started sericulture in about 1200 B.C. The industry later spread to Japan. In the 17 Century the sericulture was flourishing in the then Bengal (Present Bangladesh). Now days there are 58 countries producing silk related products. Among them, 8 countries are-China, India, Japan, Russia, South Korea, Brazil, Vietnam, and Thailand are the leaders in the silk production. The history of silk in Bangladesh is linked with undivided India. According to the historian of the Moghal rule, this industry named ' Bengal Silk' was the measurement of socio-economic development of undivided Bangla. Even under British rule a large amounts of silk products were exported to different countries in Europe. Then Bangla was termed as 'store house of Silk'. In 1889 a silk business association had been established. But because of indifference of British, Govt. huge amount of "Neel" production, changes in political and social sector and attack of "Pebrim" named insect.
The activities of small and cottage industry in between 1947 and 1960 become postponed because of lack of necessary of skilled personnel. Financial support, well thinking policy, overall lack of administrable re-establishment is also the causes of postponing this industry. There was no strong emphasis for its advancement after the liberation of Bangladesh up to 1976. Some notable programs were taken to restore the destroyed industry through establishing Bangladeshi Silk Board In 1978. "Employing technical personnel “these types of program or the measures were taken to reduce the lacking of personnel, and their training needed. Similarly the Govt. provided the subsidy to encourage the farmer to produce silk yarn. The program was continued through two years planning (1978-80) after 1978.
To produce quality silk and making employment opportunities for country side people "The Bangladesh silk board were accepted" 2nfifth year plan in (1980-85) marketing some main target of this program. In 1983 ten separated programs were merged named “combined silk production development project". Bangladesh silk Board helped for expansion of silk production and quality improvement in the third fifth-five year plan (1985-90).
Later, an extreme destroy comes in silk industry in the decade of 90 and the supply of defected silk cocoon from different seeds store and reworking the import tax specified from importing the raw silk and silk yam was the main reason. That's why the demand silk cocoon and silk yarn become at lowest. Even the marketing of such product were closed. In this extreme odd time for developing some step for marketing silk component the NGO's of Bangladesh become ahead to their help. Eventually in 1998 with the assistance and association of NGO's and financial assistance of World Bank for the development of silk production and silk industry. Bangladesh silk foundation has established, but owing to flood problem in 1988 about 7 million mulberries had destroyed, as a result the production of silk cocoon become down from 824 metric ton to 436 metric ton.
According to Bangladesh silk foundation domestic demand for silk fabric is 32000000 meters but local production is only about18000000 meters. In this situation rest amount is imported considering this huge demand the NGO's taken various steps for silk expansion including helping the Govt. to restore the feasibility and reserve foreign currency. As a result, various programs accepted like encouraging silk yarn producer to create market for silk product to make silk production at international standard to use high technologies. [Source: Record book of BSICS]
Background of the Usha Silk Industry
Our economy is an agro-based economy. About 80% of the total population is related with this profession. For cultivating sericulture the climate of Rajshahi is mostly affordable. According to the historian, In the Moghal period some small reeling factories had been established in greater Rajshahi in Bangladesh. In 1897 a sericulture school has been established in Rajshahi. In 1889 a silk business association has been established.
After 1947 most of silk was exported to India. During the 16thdecade, under the control of small and cottage industry East Pakistan Gov. established 12 silk nursery, 20 expansion centers, 1 silk factory, 1 silk research and training institute had been established in Rajshahi.
Overall aspects of the Usha Silk Industry
Al-haj Monjur Faruk Chowdhury, the present owner of Usha Silk industry, wanted to produce silk goods in 1989. He was eagerly interested to build a silk printing industry in his own house by own capital seeing the availability of resources. In 1994 this mill was started to produce main products. Primarily the capital was about TK. 16 lacks and it had only one-show room. Then gradually familiarity and business activity were expanded. Currently its capital is about taka 3.0 corer and it has 3 show rooms.
Usha Silk Industry at a Glance
Name Usha Silk Industry Ltd.
Location Sapura, Rajshahi, Bangladesh.
Date of installation 18-05-1989
Founder Al-haj Monjur Faruk Chowdhury
legislation Registered according industry law
Sources of capital Owner's equity and bank loan
Sources of raw materials Local and foreign (China, Korea, Vietnam, India)
Used fuel Electric energy, diesel, Wood, Kerosene
Number of labor 280 person
Audit facility External Audit
Compensation system Daily, weekly, monthly, production basis
Training facilities Insufficient (only for labor)
Quality control system Own quality control system
That is Usha Silk is situated in the industrial area of Rajshahi. They use raw material for local & foreign sources. They use electricity, diesel, wood and Kerosene as fuel. The number of employees and show room has decreased compared to last five year.
Chapter FOUR
Finding of the Study
Product Analysis
The firm should ensure the quality of silk products according to the consumer needs and expectations so that the consumer can rely upon these products. Quality of a product is the attribute that consumers expect in a particular product. In case of silk product, these attributes may be longevity, design, color combination, print, comfort-in-use, etc. Different classes of consumer expect different types of quality. One may consider longevity as quality while others may prefer comfortable color, design, print, etc. So, quality should be settled 'from consumer's view point. Laundry facilities such as washing and calendaring can be added and offered to consumers.
Usha Silk Factory has three product lines. These are as follows-
a) Ladies' item;
b) Gents' item;
c) Than kapor (Pieces of cloths).
At present the firm includes following products in product line-
Ladies item Gents item Than kapor
Rajshahi silk share Silk/toshor/matka shert Bolaka than
Rajshahi toshor silk Silk/toshor/matkapanjabi Toshor than
Verities hand stitch sharee Silk fotua, kotee Pajama Pajama set Marka than Joysree than Soft than
• Batic print sharee;
• Block print sharee;
• Stripe silk than;
• Afsan serine sharee;
• Art purshian sharee;
• Two piece-three piece;
• Orna, etc.
Usha Silk factory is trying to include new product items in their product line. Price is a very much sensitive factor. There are various consumers. They measure the quality of product on the basis of price. So, price should be fixed at a reasonable range. Usha Silk factory follows fixed price. The prices of the products are determined before production. The customer has a huge bargaining power. Also the target consumer generally does not like bargaining.
They follow the mixed pricing policy. Mainly they follow cost base pricing method. The pricing method is very specific and straight according to present market situation.
Price = Cost plus pricing method
Price lists for individual items of the Usha Silk factory
Table No. 2
Name of the ladies' item Price range in taka
Lower price Higher price
Rajshahi silk sharee 1500 2250
Rajshahi toshor silk sharee 1950
Varieties hand stich sharee 3500 8750
Batic print sharee 1800 2600
Brush fabvric sharee 32000
Block print sharee 3200 3850
Afsan serine sharee 2200 2300
Art purshian sharee 2600 4000
Two piece-three piece 2150 3000
Orna and etc 1350
Source: Office record book.
Table No. 3
Name of the gents item Price range in taka
Lower price Higher price
Silk / toshor / motka shirt 650 2500
-Silk / toshor / motka panjabi 1150 2700
Silk fotua, kotee 750 1400
Pajama and etc. 350 750
Source: Office record book.
Table No. 4
Than Kapor Price (Tk)
Block than 350
Thoshor than 450
Motka than 450
Jaysree than 450
Soft than 350
Stipe silk than 450
Moyarkothi than and etc 550
From table no. 2 & 3, it is clear that prices of different products vary due to quality and types. Ladies' items charge higher price. Item prices move between products of gents prices item and charge higher than other lower priced items.
Table No. 5
Sales target and achievement for last five years
Financial year Sales target Actual sales Rate of sale
2006-2007 45293000.60 42987586.87 94.91%
2007-2008 51284000.32 49586499091 96.69%
2008-2009 57275000.45 56450240.44 98.56
2009-2010 98450000.00 97307980.00 98.84
2010-2011 18550000.00 18300000.00 99.50
The above table shows the company's actual sales in company's strategy. Here the rate of sale is above 99% and the recent target fulfillment was mostly met. So the result is satisfactory.
Distribution Analysis
Usha Silk Factory generally uses director channel for distributing their products. But out of the Rajshahi City they appoint agents to sell their products. The distribution channel of the Usha Silk is shown below.
a) Factory - show room - consumer
b) Factory - retailers - consumer
c) Factory - wholesalers - retailers - consumer
Number of showrooms
City/town Number of show room
Rajshahi 2
Dhaka 1
Source: Usha Silk administration department
Sales volume by distribution method
year Sales target show room Actual sales show room Sales target middlemen Actual sales middlemen
2006-2007 56% 49.67% 44% 36.8%
2007-2008 59% 46.67% 41% 35.3%
2008-2009 61% 49.80% 39% 33.40%
2009-2010 64% 56.30% 36% 38.60%
2010-2011 68% 68% 45% 5.5%
Source: Usha administration department
The table sales target through showroom was not meet with the actual sales. It is a matter of concern as to why it was not met. The industry closely achieved its target sales during the last five years. They target two ways, i.e. Show room target and middleman target. The achieved rate of show room is higher than middleman. This may have appended due to promotional problem.
Market Analysis
Bangladeshi Silk product market is increasing with the passage of time due to total production and humans being fashionable. Silk items are also being exported to foreign countries such as Italy, UK, etc. Consumers belong to the middle, and high class.
Buying situation
Sales department of the company has increased its 50% sales during festivals like Bid, Puja, etc.
Growth rate
The growth rate of the industry is satisfactory. But USHA SILK is inconsistent to capture the increasing market. In the year 2010-11 the growth rate increased 12% but the industry growth rate increased about 5%. The market growth rates based on sales are given below.
Table No. 1
year Industry growth rate USHA silk growth rate (%)
2006-2007 8.20% 14.2%
2007-2008 10.75% 15.45%
2008-2009 12.32% 17.85%
2009-2010 15.94% 22.2%
2010-2011 19.58% 28.15%
From the above figure and graph, it is clear that the growth rate of USHA silk is higher than other silk industry as a well as whole. This rate increased at an increasing rate during the last 5 years. And for this reasons, it is maintaining a leading position in the silk industry
Environment Situation
There are two types of environment which are micro and macro. But our discussion here is about the macro environment.
Demographic environment
The population growth of Bangladesh is very high which is about 2.48% (2007). It is the great opportunity to create demand of silk of the customer. As we know, the growing population means the growing human needs. Most of the people expect high standard of living. This Conscious pattern is changing day by day in the silk industry. So, we want to give quality silk to the customer.
Economic Environment
The per capita income of the people of Bangladesh is increasing day by day. But it is comparatively very lower to the developed countries' income growth. But customers are very much eager to spend their money for buying clothes. The company has to consider changes of major economy variables such as.
1. Income;
2. Savings;
3. Interest rate; and
4. Savings patterns have large impact on the market place.
And also company has to consider these variables for forecasting economic condition. They are always time bound to buy clothes when they fulfill any needs.
Technological environment-
• The technology is changing very rapidly
• The technology of garments sector is also changing very rapidly.
• There is a great opportunity to innovate.
• The R&D budget is high.
• The Usha Silk production technology is a satisfactory medium to fulfill the domestic market.
Political & Legal
A company or business organization maintains here is regulated for business and management by legislation. Some Acts are-
• Trade Mark Acts - 1940
• Design Acts- 1972
• Essential Commodity Acts - 1956
• Bangladesh Product Control Acts - 1956
Socio-cultural Environment
Due to the educational development and consciousness for higher standard of living, the people of Bangladesh want modern and better silk service and quality silk product
Chapter FIVE
Strategy Analysis General Approach
Strategy Analysis General Approach
There are some few competitive firms that do not control the quality. They do not have good will and registered brand name and they sell their products in lower price. Besides these, some products come through smuggling and also sell in low price. As a result, the factory has lost some of its permanent consumer, especially the price sensitive consumers.
But most of the competitors' positions are alike. The industry is fragmented where there is no leading company. At present, many on-dominant companies are staying in the market and they produce same quality, design, and price them approximately similarly.
Future Goal
Future goal of the firm is to graph the maximum market share and expand the present market. It analyses the competitors by reviewing various publication.
Current strategy
The 2nd component of competitor analysis is finding the competitor's current strategy. Here Usha Silk conducts research work to identify the strategy taken by its competitors.
Assumption
The other crucial component of competitor analysis is identifying each competitor's assumption. Here the firm analyses two types of assumptions i.e. assumption about itself and assumption about industry and other companies in it.
Capabilities
In this sector the firm analyses its strength and weakness and also those of its competitors. The market share of Usha Silk Industries are 11%, Sapura Silk Industry 14%, Doel Silk Industry 9%, Molina 7.5%, Adarsha Silk Factory 7%, Antar Silk Industry 8.5% and Sunflower Silk Factory is 7%.
Market share of competitors
Competitors Market share
Usha Silk, Sopura 11% 14%
Doel 9%
Adarsha 8%
Antar 9.5%
Sunflower 7%
North Bengal 9%
Amena 7%
Fousdar 7%
Naoshad 5%
Tanzil 6%
Source: BSCIC handbook 2011
[Note-some other companies who are in the industry hold the total share of 46%]
The above table shows the position of the Usha Silk in the industry. It contains 8.5% share which is the second best of the industry. That means, we have to consider us as a challenger.
[Note-some other companies who are in the industry hold the total share of 46%]
Generic Strategy
The fundamental basis of above average performance in the long run is sustainable competitive advantage. A firm can take three types of competitive strategies, i.e.
a) Cost leadership;
b) Differentiation;
c) Focus.
Competitive advantages
Lower cost Differentiation
Competitive scope broad target 1. Cost leadership 2. Differentiation
Narrow target 3a. Cost focus 3b. Differentiation focus
Fig: Generic strategy and relative competitive advantage (Source: M.E. Porter Competitive advantage.)
Cost leadership
In it a firm sets out to become low cost producer in its industry. USHA SILK industry tries to maintain cost leadership by managing all the factors related to it.
Differentiation
Usha Silk maintains differentiation with its competitors by using various color, design, brand and packaging.
Focus
Usha Silk mainly focuses on low cost production to meet the competitive challenges.
General strategy
The product manager now outlines the broad marketing strategy or a game plan to accomplish the objectives incorporated in the plan. In developing the strategy, the product manager talks with the purchasing and manufacturing people to confirm that they are able to supply enough material and produce enough units to meet the target sales volume levels. The product managers also need to talk to the sales manager to obtain sufficient sales force support and the financial officer to obtain sufficient funds for advertising and promotion. We know that marketing strategy starts from the identification of the customers' needs that will be satisfied and ends it through the customers' satisfaction. To meet demand, Usha Silk arranges its marketing strategies. The marketing strategies of Usha Silk contain the factors below:
1. Target customers: The main target group of Usha Silk is upper income and middle group.
2. Positioning: Usha Silk will position its quality products in the mind of customers against competitors (Sapura Silk, Doel, Mohua, and Sunflower).
3. Pricing: The pricing system of Usha Silk follows cost base pricing.
4. Distribution outlets: Increase 7 outlets in Dhaka, Sylhet and Chittagong.
5. Sales force: Company will provide 5% incentives on sales for the irrespective volume increases.
6. Advertising: Increase advertising budget
7. Sales promotion: Increase promotion.
Opportunity and Issue Analysis
SWOT Analysis
It is either positive or negative. First, we analyze the opportunity and threat which exist outside the company and secondly we analyze flip-strength and weakness which exist in internal activities.
Opportunity
Opportunity arises when the environmental trends create the potentials for the company to make greater profit. Here the Usha Silk Industries opportunity analyses are shown below:
New entry barrier
New entry in an industry for a company is very tough because it depends on brand loyalty, absolute cost advantages and economics of scale. So it is the opportunity.
Usha Silk industry
Barriers and profitability matrix
Profitability/Exit barriers
Strong competitive position
Usha Silk industry has the uniqueness in considering its competitors. Though it has 11.5% of market share, it has a great reputation in the market. This reputation becomes one of the important opportunities for this industry.
Price Sensitive
Our target customers are the middle and upper class people. The target customers are not much prices sensitive. So it is an opportunity for Usha Silk.
Latest Technology
Usha Silk Industry has some latest technologies. It helps to earn competence.
Threat
Threat arises when the environmental change endangers the integrity and profitability of the company. Here Usha Silk Factory's threats are shown below:
Collection of Raw Materials
Usha Silk procures 65% of raw materials from abroad which is so tough.
Substitute Products
The price of Usha Silk product is high and fixed. So customers have no bargaining power. For this, they purchase another substitute product.
Inflation Rate
Inflation rate has great impact on company to collect raw materials because Usha Silk procures 70% of raw materials from abroad.
Political Instability
Though the government of Bangladesh is elected by the people, there exists political instability for a variety of reasons. It has its impact upon the market. So it becomes a threat for the company.
Strength
Strength means the factors that create competitive advantages for the company. The strengths of Usha Silk Company are-
Experience and Skilled Manpower
Usha Silk has many experienced and skilled manpower which show the company's strength.
Production System
By using some latest technology, Usha Silk produces systematically.
Quality Product
Usha Silk ensures the product quality. It is an important difference from other competitors. So it is also the company strength.
Control of distribution Channel
Usha Silk reaches its customers by exposing its products by using show rooms, wholesalers, and retailers to the customer. For this, it has full control of distribution channel.
Current Ratio
We know that the standard value of current ratio is 2:1 and the current ration of Usha Silk is 1.36:1. So it is good for Usha Silk.
Its standard value is 1:1. That means, it has capacity to pay for the liabilities instantly.
Weakness
Weaknesses are the factors that increase cost and decrease the company’s profitability position against competitors. Weakness influences the company's failure in the market. The weaknesses of Usha Silk Factory are:
Dearth of Raw Materials
The raw material of Usha Silk product is not available in every tune. So it shows the weakness of the company.
Selective distribution channel
Usha Silk uses some distributors in some major districts on a highly selective basis. For this, company can not increase its volume as per its expectation.
No. Research and Development
MNC's innovation new products and add value with their products through research and development whereas Usha Silk does not give attention to this matter.
Weak information
Basically show room oriented business closes the door of mass awareness.
Issue
Usha Silk industry must consider the follow issues-
1. Improve the product competence;
2. The internal marketing should be incorporated;
*The market comment is so vital.
Chapter SIX
Conclusion
Projected Profit and Loss Statement
We know that action program allows the product manager to build a supporting budget. The budget is the basis for developing plans and schedules for material procurement, production scheduling, employee recruitment and marketing operations. On the revenue side, the budget shows the forecasted sales volume in units and the average price. On the expense side, it shows the cost of production. Physical distribution and marketing are broken down into finer categories, and the difference between revenues and sales is projected profit.
Usha Silk Industry's targeted net sales will be TK. 9, 37, 31, 200.00. Reduced cost of goods sold will be TK. 5, 14, 57, 020.74. The marketing general and administrative cost will be TK. 2,04,40,979.26. By considering the cost of goods sold company's gross profit will be TK. 3,22,74,179.26 and by considering the other expenses, its net profit before tax will be TK. 68,33,200.
By considering the above revenue and cost, we can prepare the projected profit and loss statement of Usha Silk in the following way:
Projected Profit and Loss Statement
Usha Silk Industry
From the above income statement of Usha Silk, we find that the company's gross profit will be TK. 57298.2 thousand and deductive expenses net profit before tax will be TK. 10935.12 thousand. The sales volume, gross profits and net are determined by considering company's resources, production capacity, and trend of sales revenue, gross profit and net profit of previous years of the Usha Silk
Control
It is the last step of marketing plan. In this step, the company’s marketing activities are monitored. Through the monitoring of marketing activities, the deviation between estimated performance and actual performance is monitored and then recommended to recover the deviation. Usha Silk Industry will follow three types of plan control-
1. Annual plan control;
2. Profitability control; and
3. Efficiency control.
Through the Annual Plan Control, the Company will perform the activities ensuring that the company is achieving its current sales profits and other goals.
Through the profitability control, the company will perform the task of measuring the actual profitability of product, customer group, trade channels, and order size. Company's accounting system is seldom designed to report the real profitability of different marketing activities.
To control the marketing activities of Usha Silk Industry, efficiency control plan should be used. The efficiency control plan Company will try to determine how various marketing activities could be operated upon more efficiently.
Moreover, to control the marketing activities, it is required to collect data from various sources Here the feedback of customer is very much important. So, the company can collect data from channel members and customers by using following process.
So, at the end of the discussion, we can say that Usha Silk Industry will monitor and control the marketing activities through the annual control plan, profitability control, and efficiency control and collect data from various sources in above ways.
Recommendations
To overcome the difficulties the Usha Silk industry can follow the following recommendations:
Aiming to establish competitive price. For that reason, the company is offering optimal price for the product.
It will take more incentives in production activities. The promotion activities include arranging seminar, symposium, greetings and gifts item distribution to take the customers on cooperate in special occasions.
Companies have to operate promotional activities in all districts.
It needs to attend in various fair to build up the image.
For establishing better organizational culture, company ensures sound corporate Culture.
For smooth distribution system and decorate high class show room, the company requires taking diversities strategy.
Updated information system will be adopted in all management level of the Company. As a part of this, Transaction Processing System (TPS) will be introduced this year.
Bibliography
1. Hoffman, K. Douglas and Bateson, John E. G, Essentials of Service Marketing: Concepts, Strategies & Cases, Second edition, Harcourt College Publishers.
2. Kotler, Philip and Armstrong; Principles of Marketing. Published by Asoke K. Ghosh; Prentice - Hall of India private Limited; 7th Edition.
3. Kotler, Philip; Marketing Management; Published by Prentice - Hall; Upper Seddle River, New Jersey 07458; 11th Edition.
4. Malhotra, Naresh K; Hall John; Shaw Mike and Crisp Mike; Marketing Research; Published by Asok K. Ghosh; Prentice - Piall of India Private Limited.
5. Marketing Journal, Published by Department of Marketing, University of Rajshahi.
6. Stanton J William; Fundamental of Marketing, Published By McGraw-Hill International 10" edition.
7. M. E. Porter-competitive strategy & Competitive-Advantage.
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