Profile of an Entrepreneur and his business
BUS101 Group Report APRIL 8TH, 2010
Prepared By Masroor H. Khan
0930351530
Zeeshan Rahman
0930194530
Fariha Tabassum
0930242530
A.K.M Sharfuddin Chowdhury
0930250530
Prepared For SDU Section 5 Lecturer Department: SCHOOL of Business
LETTER OF TRANSMITTAL April 8, 2010 Mr. M. Saidur Rahman (Saeed) Lecturer Department: School of Business North South University Subject: Submission of group report Dear Mr. M. Saidur Rahman (Saeed), Here is the group report on the „Profile of an Entrepreneur and his business‟ that you asked us to prepare as a part of requirement for our BUS101 course.
In presenting this report, we have tried our level best to include all the relevant information and the explanations to make the report informative and comprehensive.
It was a very enriching and enthralling experience for us to prepare this report. Our report writing skills and communicating skills have improved a lot while doing it. If you should need any kind of assistance in understanding this report, please do not hesitate to consult with us in the classroom.
Thank You for believing in us and giving us this wonderful opportunity.
Sincerely, _______________
______________
_______________
_____________
Masroor H. Khan
Zeeshan Rahman
Fariha Tabassum
Sharfuddin
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Acknowledgements
We would like to thank Almighty Allah for giving us the patience and the ability to work hard with tremendous devotion. First and foremost thanks to our Course Instructor, Mr. Saidur Rahman (Saeed) for his invaluable guidance, encouragement and suggestions throughout the entire BUS101 course. Without his support and faith in us it would not have been possible to complete and submit this report.
We are deeply indebted to our friends and entire family of Mr. Moktar Hossain without whom this report would not have been a success. Their invaluable suggestion and information have taught us much and as a result our preparing this report has been a very positive and uplifting experience.
Special thanks to:
Md. Moktar Hossain, Managing Director, Diamond Melamine Pvt. Ltd Md. Moktar Hossain‟s family {Mrs. Moktar Hossain, Mosharraf and Moshtaq {son}} Minhaz Ahmed, friend, Studying ECONOMICS in NSU Mr. Abdur Rauf Chowdhury, Factory Manager, Diamond Melamine Pvt. Ltd Mr. Forhad Hossain, Senior Supervisor, Diamond Melamine Pvt. Ltd
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Executive Summary We have prepared the following report on the profile of a Business Entrepreneur, Md. Moktar Hossain and his business which is Diamond Melamine Pvt. Ltd.
The following report has been divided into five parts. The first part includes Introduction where our research methodology and objectives, etc. In the second part of the report we have covered the Entrepreneur’s Background you will know about the entrepreneur‟s family background, academic information, work experience and abilities, the staring of his current business, current family conditions and his future plans.
The third part is about the Business Background of Diamond Melamine Pvt. Ltd which includes key information about the company‟s Vision and Mission statement, initial finance, market share and the prospect of the Melamine industry locally and globally.
We have provided comprehensive and informative materials of Business Analysis which covered the innovation, interpersonal relationship, detailed SWOT analysis, business management process, factory and production, products life cycle, turnover comparison graph, ethical and philanthropic activities of the Entrepreneur, and lastly risk management and awareness of Diamond Melamine Pvt. Ltd.
Finally, the fifth part is the Conclusion of the report in which we have commented exposing our opinion on the business and the entrepreneur. This part also carries few recommendations that we have made to the business and the entrepreneur for overcoming some of the flaws and mentioned some methods of increasing efficiency and productivity based on what we have noticed in our comprehensive study process of the business while preparing the following report.
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Table of Contents Serial no:
Item
Page No
0.
Letter of Transmittal Acknowledgement Executive Summary
2 3 4
1.
Introduction 1.1 Research Objectives 1.2 Research Methodology 1.3 Teamwork and Planning
6 6 6-7 7
2.
Entrepreneur’s Background 2.1 Family Background and Academic Information 2.2 Career: The Places He Worked In 2.3 Experience and Abilities (In melamine sector) 2.4 How the Present Business got started 2.5 Current Family Condition and Future Plans
8 8 8-9 9 10 10
3.
Business Background 3.1 VISION 3.2 MISSION STATEMENT 3.3 Initial Finance 3.4 Market position/market share 3.5 Prospect of the industry (Locally & Globally)
11 11 11 11 11-13 14
4.
Business Analysis 4.1 Innovation 4.2 Interpersonal Relationship 4.3 SWOT Analysis 4.4 Business Management 4.5 Factory Premises & Working Condition 4.6 Production 4.7 Product life Cycle 4.8 Performance in terms of annual turnover comparison 4.9 Business Ethics and Philanthropy 4.10 Risk Management and Awareness
15 15 15 16 17 18 18-19 19-20 20-21 21-22 23
5.
Conclusion 5.1 Comment on the Business and the Entrepreneur 5.2 Recommendation to the Business
24 24 24-25
6.
References
26
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1. INTRODUCTION 1.1 Research Objective Although this report was carried out within a short span of time, but we have tried our best to provide the best, accurate, true and relevant information without which the report is not considered to be complete. The following group report on the „Profile of an Entrepreneur and his business‟ was asked to prepare as a part of requirement for our BUS101 course.
The main objective about the research is to know about a successful Business Entrepreneur and how effectively he manages and operates his business. The research will help us in the future to have elaborate information and real life experience about the risks and challenges involved in being an Entrepreneur. This research has developed our public relation, listening and communication skills as we conducted interview of the entrepreneur and some of the related business people.
We have got to learn the methods of preparing a formal business report which has enlightened our knowledge of report writing. Also presenting our research materials in a formal group presentation environment was a major motive which will help us to build confidence of expressing our views openly. This will vastly improve our narration skills.
1.2 Research methodology Knowing about a competent and busy corporate individual such as Mr. Moktar Hossain and his well established business was not an easy task for us. However, Mr. Moktar Hossain was very cooperative in giving us his precious time. We did not have specific set of formal questions prepared for Mr. Moktar Hossain rather we had a casual conversation. Our conversation was very interactive and lasted for almost 3 hours.
Mr. Moktar Hossain invited us to his factory to know about his business and its operations which helped us tremendously to prepare the report.
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When we visited the factory at Brahmmonkitta, Keranigonj we were introduced to Mr.Abdur Rauf Chowdhury (Factory Manager) with whom we had a formal interview. He then introduced us to the senior most factory supervisor, Mr.Forhad Hossain who guided and showed us around the entire factory. Questionnaires for the employees and workers on different aspects of the company also helped us in getting the bulk of the information to know how Diamond Melamine Pvt. Ltd implements its managerial process.
We have also gathered plenty of information about the report from the company website, internet resources, text books and combined efforts of our group.
1.3 Teamwork and Planning Teamwork and co-ordination is extremely important to produce a report that requires extensive research and analysis. Everyone contributed for the completion of the report. This report was created by task distribution starting from planning, collecting information, formatting report, report writing and editing. The focus of the members was always on how to put their best effort in the report. There was massive cooperation and unity among the members which helped in writing a very comprehensive report. This report has taught us a great deal on how to work in a group. This experience of working in a group was truly an enriching and memorable one for all the members.
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2. ENTREPRENEURS’S BACKGROUND Md. Moktar Hossain hails from Rahamatpur, Keranigonj. The enterprise under the ownership of Mr. Moktar Hossain is Diamond Melamine Industries (PVT) Ltd. His dream, devotion, hard work, and dedicated behavior made him the emerging business idol and the genius Business Entrepreneur.
2.1 Family Background and Academic Information th
Md. Moktar Hossain was born on the 5 May, 1960 at Rahamatpur, Keranigonj. His father was th
Jainal Abedin. Md. Moktar Hossain was the 6 son of poor tailor father. His father was so poor that, he could not manage food for his children.
Md. Moktar Hossain started his education from his village‟s primary school, from where he passed with scholarship in class five. After passing class five, he joined Keranigonj high school, where he got scholarship in class eight, which was the one and only sources of his educational expenses. At the time when he was a student of class seven, his father died, leaving nothing but a big family. In 1979, he passed S.S.C examination from the same high school.
Even though, the other two elder brothers of Md. Moktar Hossain were engaged in job, but it was ironical that they had not supported the next two brothers. He got financial help throughout his early life as well as his education career from his immediate senior brother, Md. Rajjab Sharif, who was employed as a compounder in a pharmacy.
2.2 Career: The Places He Worked In Md. Moktar Hossain had a dream to remove poverty from his life, because he knew what the bitterness of poverty was.
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He then joined with his brother Md. Rajjab Sharif as an assistant compounder in the same pharmacy. From the little saving the two brothers started to stock medicines in 1974 and sold the medicines at a higher price when they were scarce in the market. By doing so, Md. Moktar Hossain together with his brother established a drug house in 1976, near Mitford.
He was so devoted to their business that he had no personal life. Despite of their earnest trying, they could not amass a lot with which they could establish a business. In the mean time his elder brother Md. Rajjab Sharif got married with a popular business man‟s daughter of old Dhaka. Later on, he was also the father in law of Md. Moktar Hossain.
With their little savings and support from their father in law, two brothers started to import “Dano milk powder”, then in 1979 they started to import “Red Cow milk powder” .This is the turning point of their lives.
2.3 Experience and Abilities (In melamine sector) In the mean time they amassed enough money to establish a factory, but could not know what type of company would be established. Md. Moktar Hossain came to know about melamine from one of his friend who was an employee of „Bangladesh Melamine‟. He then went to the factory premises of Bangladesh Melamine and got to learn everything about production. The melamine products attracted him very much, and then he instantly took the decision that they would establish a melamine factory.
Initially his elder brother Md. Rajjab Sharif was against his proposal as they knew nothing about melamine industry but Moktar Hossain was persistent in his will that he can make the business possible. He then went to TAIWAN where he took training on melamine industry for six months. His dream came to reality in 1989, when he unveiled the door of “Sharif Melamine Industries (PVT) Ltd” at Kajpur. As melamine was new at that time in Bangladesh, he saw a great potential in this sector. He then went for heavy advertisement fo r “Sharif Melamine Industries (PVT) Ltd”, and within a short time became the top melamine producers of Bangladesh.
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2.4 How the Present Business got started: Md. Moktar Hossain became isolated from his brother Md. Rajjab Sharif in 2002 and established his new venture in melamine industry, named “Diamond Melamine (PVT) Ltd.”. He has always a desire to do something separately, because he said that “I want to reach the level where I can go alone”, and for this reason in 2002, he separated their business and established “Diamond Melamine Industries (PVT) Ltd.”. Within 2 years after establishing, Diamond Melamine became 50 crores.
2.5 Current Family Condition and Future Plans: In personal life he is married and blessed with two sons and one daughter. His elder son graduated North South University and currently doing his MBA from a highly ranked University in UK and the younger two are in an English medium school.
A poor boy who could not afford daily meals regularly, who did not get much opportunity to be educated but become able to raise himself from worst situation of life and became a successful business man in this society, whom we can follow as the role model of our life.
Even when he is 50 years old, Mr. Hossain gets up from the bed at 5:30 AM and goes to bed at around 11 AM regularly because he enjoys working very much. He believes that every single moment is important for a business life.
In the future Mr. Moktar Hossain has plans to expand the factory building and bring in new technologically advanced machinery for production.
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3. BUSINESS BACKGROUND 3.1 VISION: Diamond Melamine Industries (PVT) Ltd strives to be the leading melamine crockery producer in Bangladesh and seeks to meet the demand of its local and global consumers and contribute in making people‟s life better.
3.2 MISSION STATEMENT: Diamond Melamine Industries (PVT) Ltd has the focus to serve its consumers with superior quality, durability, reasonable price by creating values and providing customer satisfaction through its modern and eye catching designs and unique range of products.
3.3 Initial Finance: From the enormous success of Sharif Melamine Industries in which Md. Moktar Hossain was a partner for 15 long years, he derived a huge amount of profit. This profit along with his personal savings and financial support from his friends and family were the vital sources of Diamond Melamine Industries‟ initial capital. He also successfully managed to accumulate bank loan which was another strong financial source of investment into the project.
3.4 Market position/market share: In recent years, the Melamine industry is growing businesses in Bangladesh .Melamine industry expects significant growth rates to persist in the near future so that investments in this segment are very profitable. At present there are more than 20 melamine producing companies that are operating in Bangladesh. Melamine industry is a new concept for the crockery in Bangladesh since 1987.
Melamine dinnerware are preferred by an increasing number of population and growing its demand for its durability(lasts more than10-12 years) and affordability .Whereas ceramics, glass, Page | 11
steel, tin, etc (fragile, breakable, non-durable products)became unpopular and have been replaced by resin melamine products. Melamine products are mainly produced and targeted for middle and lower income groups (i. e, majority of worldwide income groups), its market share increased rapidly due this socioeconomic structure.
Some of the major companies producing melamine crockery are:
Sharif Melamine Industries
Diamond Melamine Industries (PVT) Ltd.
United Melamine Industry
Classic Melamine Industries Ltd.
Crown Melamine Industries Ltd.
Bangladesh Melamine Industry Ltd. (and many more).
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Melamine Industry market Structure
Market Share on the basis of Production
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Market Share on the basis of P roduction • Diamond Melamine Industries (PVT) Ltd.
2.4
• United Melamine Industry
1.5
• Sharif Melamine Industries
4.1
• Crown Melamine Industries Ltd
2
The above data represents the results of a survey conducted by Diamond Melamine Industry. The graph shows comparisons between the 4 major competitors in the Melamine industry with respect to its market share and position. We can observe that Sharif Melamine Industries is leading the melamine market with a fair margin from its nearest competitor i.e. (Diamond Melamine Industries (PVT) Ltd.). Although Sharif Melamine Industries market share is the highest, but taking the time period into account, Diamond Melamine Industry has a remarkable growth in the market share within a relatively shorter period of its operations with their superior quality products and magnificent designs that created larger customer base throughout the domestic and global market. Crown Melamine industries Ltd. and United Melamine industry are behind Diamond Melamine Industry with a fair proportion of market share.
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3.5 Prospect of the industry (Locally & Globally) Condition of Bangladesh, according to demographics results to high growth in middle class people and their increase in the purchasing power gives the industry a greater prospective market. The cost of production is cheaper for our cheap labor cost in Bangladesh providing cost efficiency which makes the Melamine industry to stay ahead in competition against its international competitors.
The demand for Diamond Melamine‟s product h as increased because it is widely distributed in several geographical locations throughout the country and globally and with the increasing amount of consumption of melamine products for households, offices, small roadside restaurant, in School and University canteens, hospitals, hostels, hotels, motels, business organizations and many more.
Diamond Melamine has exported its high quality products in countries like Bhutan, India, Nepal, Saudi Arabia, UK and many more.
Diamond Melamine has also undertaken many deals of customized order for many local and international firms and organizations by carrying out CONTRACT MANUFACTURING. This was done by attaching private-labels or logos of the respective buyers firms in Diamond Melamine‟s crockery and dinnerware products.
Some of the major companies Diamond Melamine has done Contract Manufacturing for include:
BANGLADESH NAVY
BANGLADESH ARMY
UN(UNITED NATIONS)
SMC ORSALINE COMPANY Bangladesh
UMBRO ( UK, IRELAND, FINLAND, SWEDEN & SPAIN )
PUMA ( Finland )
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4. BUSINESS ANALYSIS 4.1 Innovation The designing of the Diamond Melamine Products are very innovative. Special emphasis has been given on developing modern designs, so that the company‟s performance stays in par with time. An expert panel of local designers has been employed on regular basis when the company needs to bring in new designs for their products. Moreover Diamond Melamine is constantly in touch with highly professional international designers who work for them on a contractual basis and has the expertise of working with many multinational firms. This crucial measure to bring in innovation in their products is taken so that the company can maintain an international standard and stay ahead of its competitors. Mr. Moktar Hossain has also planned to establish 20 more technologically advanced machinery within the next 18 months which will help Diamond Melamine to increase their level of production.
4.2 Interpersonal Relationship Mr. Moktar Hossain not only has technical and conceptual skills but he also has a tremendous Human Relation skills. The workers of Diamond Melamine Pvt. Ltd. has the freedom to express, contribute and share ideas and discuss problems regarding any issues directly with the owner himself (Md. Moktar Hossain). Mr. Forhad Hossain (the senior most supervisor of the factory) manages all the production related queries and dissatisfaction amongst the workers regarding any personal or production related matters. So the workers are never left alone in their difficult times.
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4.3 SWOT Analysis Helpful
Harmful
to achieving the objective
to achieving the objective
Strengths
Internal (attributes of the system)
Modern Machinery(Taiwan) High Quality Unique Designs Best Quality Raw Materials(China, Thailand, Taiwan) Maintaining Strong Ethics Affordability Durability Low Production Costs Skilled Labor Contacts of foreign Buyers Strong Distribution Channels Performance Evaluation System Strong Human Resource Base Efficient Management Lowest wastage rate High productivity rate Brand Image Greater Economies of scale Panel of local and international designers
Opportunities
External (attributes of the environment)
Unused Land for expansion Increasing demand in local and international market Automated machines to increase productivity Increasing buyer’s purchasing power Massive Distribution in different geographical areas Expand Product Line Less trade restriction in foreign market Buy more 20 machines in next 18 month to increase production Expand export to more countries Investing in different sector
Weaknesses
Budget Constraint Poor Advertisement Lack of advanced Technology Less sales promotion Narrow product line Poor marketing Strategy Backdated Accounting System High average cost of production Time consuming product screening and packaging department Allocative Inefficiency of Resources.
Threats
Government Intervention Political Instability Increasing Tax rates Corrupted legal and law enforcement Exchange rate fluctuation Inflation Increasing Price of Oil Major Competitors taking away skilled worker by paying higher wages New Entrant using cheaper material and selling low quality product at a low price Complicated port system Rise is sale of competitors’ products Workers Strike Fall in exports for recession
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4.4 Business Management To define the management of Diamond Melamine Pvt. Ltd, we have used the three level of management Pyramid.
Top Level Management Managing Director(Md Moktar Hossain) Business Advisor(Hazi Mezbauddin) Director(Masud Ahmed) Director(Mainuddin Pappu) Middle Level Management General Manager(Abdul Hakim) Finance Manager Accounts Manager Marketing Manager Distribution Manager Front Line (Supervisory Level Management) Factory Manager(Md.Abdur Rauf Chowdhury) Sr. Factory Supervisor(Forhad Hossain) Other Production Departmental Supervisors
Source: Understanding Business 8th Edition
The top level management takes the crucial decision of the business and is involved in Strategic Planning. The middle level management are assigned by the top level management to carry out the tactical planning. The front line (supervisory level) management usually deals with daily operational activities using their technical skills and is well guided by the top level and middle level management in carrying out the task effectively.
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4.5 Factory Premises & Working Condition Factory Premises: The factory of the Diamond Melamine Pvt. Ltd. is located in Brahmmonkitta, Keranigonj, Dhaka. It has a land area of almost 2 acres (6 bigha). The land consists of an updated 2 storied
building for production of melamine products, big electrical back up area(generator room),accommodation for 50 workers, a garden, parking space for delivery vans, open space for packing waste material and for dumping in the appropriate waste zone and free land space for future expansion of the factory .
Working condition and safety: The working conditions are very healthy and hygienic. A very high level of ventilation is maintained by using numerous exhaust fans and open windows. Workers have to wear uniforms & safety gadgets such as protection glasses, gloves, head gears ,etc so that the powdered waste do not enter their eyes. There are further safety precautions for the workers in case of emergency such as fire extinguisher, fire exit and fire alarm .Health and hygiene is maintained by setting many toilets separated for male and female workers. There is an open garden space and lots of greenery for visual refreshment and beautification of the factory.
4.6 Production Production Equipment: There are 20 production machines (18 of them each weigh 150 tons and the other 2 weigh 200 ton) and the total machinery costs 5.5 cores BDT when bought in the year 2003 from Taiwan. The major raw materials are moulding power, shining powder and paper mainly imported from China, Thailand and Taiwan. There are 2 heating machines as well to heat the designed papers which are finally pasted on the semi finished products.
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Production Capacity: The factory consists of approximately 400 workers, employed in different departments producing a range of high quality melamine dinnerware and crockery. The factory runs in 3 shifts, 8 hours per shift. Therefore each worker has to work only 8 hours per day. The workers ratio with respect to females to male is 5:2. Daily the accumulated production of the variety of dinnerware and crockery is approximately about 10,000 to 12,000 pieces of products.
Production process:
4.7 Product life Cycle The following graph shows the product life cycle o f Diamond Melamine Pvt. Ltd. Here we get to see the product sales and profit over its lifetime. Currently Diamond Melamine’s product falls under the Growth Stage as it is experiencing a climb in product sales. Customers who have previously used Diamond Melamine’s product have achieved great value for their money and satisfaction. Their word of mouth is extremely important to persuade new group of customers, as they are the reference group (opinion) leaders. The rise in completion has given Diamond Melamine Pvt. Ltd opportunity to produce at larger scale as the number of distribution channels has increased for the products growing popularity and demand. Therefore it can reach to more reseller in the existing market via its distribution channels. Page | 19
However in the Growth Stage, Diamond Melamine Pvt. Ltd is facing a dilemma between higher market share and higher profit margin. Higher expenses due to massive distribution ,advertising and providing better quality products has led to sacrificing profit in the short run but improvement in market share in the long can overcome profit shortage in the next stage of the product life cycle.
Source: Armstrong, G., & Kotler, P. (2007). Principles of Marketing (12th Edition)
4.8 Performance in terms of annual turnover comparison The following data represents comparison of turnover in the initial year when Diamond Melamine Pvt. Ltd started operating and recent two years turnover figures which helps in evaluating performance and growths. The effect of the rising of all production costs has made Diamond Melamine to operate at a low profit margin of only 10% in the recent years.
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Annual Turnover 60 56
50 50 40 30
Annual Turnover 20 10 5 0 Initial Year
2008
2009
4.9 Business Ethics and Philanthropy Diamond Melamine Pvt. Ltd. follows a Company Code of Conducts with the commitment of high ethical standards which includes:
No Child Labor(below18years)
No Discrimination(Gender, age, sex, race, political beliefs, maternity status, religion, etc)
No forced Labor
Rights to the employees
Minimizing our impact on the environment
Safe and healthy work place
Free of harassment, abuse or corporal punishment
Standard Hours of Work/Overtime
Secured Environment
Fair Wages
Mr. Moktar Hossain is not only following economic responsibilities and legal responsibilities but follows high ethical standards and also contributes remarkably by carrying out philanthropic responsibilities for social welfare of the people and community at large. He has established a Page | 21
Mosque adjacent to the factory premises for the employees and the local community. This massive contribution will serve the community for a longer period of time and thus it can be termed as a strategic philanthropy of Diamond Melamine. Moreover he follows corporate social philanthropy such as organizing and sponsoring sports event. Recently Mr. Moktar Hossain has sponsored the first national rugby competition and contributed 60% of the total tournament‟s budget. All thanks to Mr. Moktar Hossain for creating to such a tremendous opportunity to promote the youth of Bangladesh towards a better future. Mr. Moktar Hossain believes in welfare maximization and therefore Diamond Melamine Pvt. Ltd fits perfectly and completes the 4 parts of Archie Caroll‟s CSR Model.
Philanthropic Responsibilities Ethical Responsibilities Legal Responsibilities Economic Responsibilities
Source: Business Ethics (2
nd
edition), Crane & Matten, 2007
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4.10 Risk Management and Awareness: Diamond Melamine Pvt. Ltd continuously assesses their risk management program. The company tries to avoid risks by putting more emphasis on their quality. Even if the price of raw material or exchange rate fluctuates the company will have backup inventories of raw materials and necessary supplies for meeting the next two months average production level.
Power failure and availability of electricity is a major problem in Bangladesh for which the company has established its own backup power generator to provide the electricity double the capacity of what is generally required for running the production. This system of power generation was set up keeping the future expansion of the factory into consideration.
The company manages the jamming of shipments in the port by employing manager who handles the custom regulation during imports of raw material and exports of finished products.
The company has covered insurance for all its assets as well as for the products that are distributed and exported locally and internationally before it reaches the final agents and buyers. Unnecessary obstacle in production process by intervention of workers has been tackled very effectively by Mr. Moktar Hossain‟ s senior factory supervisor who listen to all his subordinates but does not act as a formal union leader. All the views are taken from the workers and worker strikes and conflicts do not take place.
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5. CONCLUSION 5.1 Comment on the Business and the Entrepreneur Diamond Melamine already established pronounced beliefs of its customers and progressing forward to build greater brand loyalty. Melamine industry has shown tremendous growth and modernization, keeping pace with overall economic growth. The increase in middle-class consumers and changes in consumption patterns gave Diamond Melamine huge opportunity to reach the level where it stands today. The company has a strong hold in the Bangladeshi market and also has a huge potential to capture the international Melamine dinnerware and crockery market. The heart and soul of Diamond Melamine is Mr. Moktar Hossain, whose relentless hard work and dedication made his business the second largest Melamine crockery producing company in Bangladesh. Starting from a nil position, in extreme poverty he had a lot of struggle and ups and downs. But his never ending enthusiasm and exemplary level of strong determination has led him to such a position which an ordinary Bangladeshi can only dream about. He reached the pillar of success with entirely is own efforts and has managed to win over every challenge required to be a successful entrepreneur. Md. Moktar Hossain has managed his business in very organized manner and his versatile entrepreneurship skills are praise worthy.
5.2 Recommendation to the Business
In the company, while analyzing we found that Diamond Melamine has large raw material stock, maintaining this large stock the company has to spent more money that increases the fixed cost. To reduce the unnecessary cost Diamond Melamine should use better forecasting method to predict in which period the demand is high or low.
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The scheduling in Diamond Melamine is not that complex, therefore Diamond Melanie has huge work-in process on hand. Diamond Melamine should implement more complex scheduling to reduce work-in process and increase efficiency.
In the Production Department, Diamond Melamine is using semi-automatic machine that is perfectly all right with the limited budget. However if Diamond Melamine could increase their budget they could have easily switched to fully automated machine, thus their production cost would have gone down and it would also be more efficient.
In the Screening Department, there is a bottleneck. Since this department is purely labor intensive it takes a lot of time for the product to pass through this department. Diamond Melamine should improve the department by installing machine that automatically check for any defects and reject. Using the machine would give more accuracy and it is less time consuming.
We observed that there is a huge scope to increase productivity. For this Diamond Melamine Pvt. Ltd should follow the strategy of modern day Scientific Management that was developed by Frederick Taylor (father of scientific management) and was a major success for every company who adopted the his principle starting from the early 1900s.Diamond Melamine should therefore conduct the „TIME MOTION STUDY‟. From our close observation we have noticed that the toilet distance for workers are far from the main production departments, also shifting of the semi- finished products from one department to other is time consuming. Improvement in these factors will surely increase efficiency and productivity.
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6. REFERENCES
Armstrong, G., & Kotler, P. (2007). Principles of Marketing (12th Edition) (Principles of Marketing) (12 edition.). Alexandria, VA: Prentice Hall.
Crane, A., & Matten, D. (2007). Business Ethics (2 edition.). New York: Oxford University Press, USA.
Diamond Melamine Industries (Pvt.) Ltd. (n.d.). Diamond Melamine Industries (Pvt.) Ltd. Retrieved April 7, 2010, from http://diamondmelamine.com/index.html
McHugh, J., & Nickels, S. M. (2008). Understanding Business 8th Edition. New York: The McGraw Hill Companies,Inc.
Methods, t. S. (n.d.). Free SWOT analysis template. SWOT Methods. Retrieved April 7, 2010, from http://www.businessballs.com/swotanalysisfreetemplate.htm
Product Life Cycle model — Tom Spencer consu lting blog. (n.d.). Tom Spencer consulting blog — An evolving perspective on management consulting, business strategy and investing. Retrieved April 7, 2010, from http://www.tomspencer.com.au/2009/01/25/product-
life-cycle-model/
Strategic Management Report. (n.d.). Scribd . Retrieved April 7, 2010, from http://www.scribd.com/doc/20813898/Strategic-Management-Report
Bangladesh Rugby Association. (n.d.). Bangladesh Rugby Association. Retrieved April 7, 2010, from http://www.bangladeshrugby.com/tournament.php
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