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Introduction
The Term “Industrial Tour” refers to a report on some industry visiting them physically, observing their process of production/ operation, and gathering relevant data from the management personnel, analyzing & evaluating the findings & drawing comments on the performance of the sample enterprises. As a part of 4th year BBA Program, we have visited Baizid Steel Industries Ltd. (BSIL) & reported on the performance of the company.
Performance means accomplishment of an expected course of action. Management makes efforts to steer the organization towards destination.
Evaluation is the process of identifying the financial strengths and weakness of the company.Performance Measurement of a company has been the subject matter of decision to planners , administrators, managers, Economist and academicians since long. There is a need for comprehensive consideration company so that their performance can be objectively evaluated. We have emphasized the promotional and Marketing activities of this company.
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OBJECTIVE OF INDUSTRIAL TOUR
The key purpose of the industrial tour made by our group was to acquire
practical knowledge about the marketing functions of Baizid Steel Industries
Limited and thus remove the gap between theoretical marketing knowledge that
we have already gained in our BBA program and the practical marketing
knowledge in the steel industry. The objectives of this industrial tour can be
summarized in the following ways:
1. To know the marketing management of Baizid Steel Industries
Limited.
2. To know about the working environment of the company
3. To know the production systems of Baizid Steel Industries Ltd.
4. To know about the procurement policy of the company.
5. To know about the warehousing and transportation system of the
company.
6. To know the internal management system of the company
7. To know about the company’s position in the market.
8. To know the distribution system of Baizid Steel Industries Limited.
9. To study on the product policy of the company
10. To determine the pricing policy of the company and which method is
followed by the concern.
11. To know the promotional policy of the company.
12. To identify the desire valuable dealers and customers.
13. To find out the effects of existing marketing strategies.
14. To identify the marketing problems of Baizid Steel Industries
Limited.
15. To perform the SWOT analysis of the company.
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16. Lastly, to recommends suggestion and solution of the problems
faced by the company
METHODOLOGY OF THE STUDY
This report is prepared on the basis of the practical experience gained
during the period of industrial tour. The information has been collected from
primary sources as well as secondary sources. We prepared a questionnaire
submitted to the management of the company, which helped a lot to get much
quantitative data
Primary Sources:
1. Group discussion with company’s management official’s ranks from
low to top level.
2. Questionnaire submitted to the management of the company
3. Primary information related to distribution has been colleted from
the sales department of the company.
4. Practical experience gained by visiting the factory and the related
departments.
5. By holding long conversion with responsible executives of different
departments.
Secondary Sources:
1. Secondary information has been collected from the literature;
articles, journals, paper and different textbooks are also used when
textbook related data is required to quote.
2. Handbill provided by the company while making industrial tour.
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LIMITATION OF THE STUDY
Our group has tried to the extreme level to collect the maximum
information from BSIL. But this report is not free from shortfalls. While our group
preparing the report, we faced some problems or limitations, which are given
below:
1. The annual report of Baizid Steel Industries Limited was not
provided by the company as a result of which we have not been able
to produce much quantitative data.
2. The industrial tour was only for one day that is not enough to make a
study successful.
3. Lack of adequate time also caused some constraints to the study.
4. Some data could not be collected for the confidentiality and official
secrecy of the company.
5. It is very difficult to discuss marketing practices of the company
separately.
6. Our personal limitation, as still our group members are not
institutionally and educationally sufficient matured, to prepare this
report is also noteworthy.
7. My personal limitation also contributes greatly in making the study
less perfect then desired.
8. We, therefore, hope that the study will be evaluated subject to the
recognition of the above-mentioned shortcomings.
4
COMPANY PROFILE
Baizid Steel Industries Ltd (BSIL) a unit of well known ABC Group of Industries,
having 22 years experience exclusively in steel making, is fully automatic steel re-rolling
mill in the country. Baizid Steel Industries Limited (BSIL) is one of the biggest steel
manufacturing companies in the private sector in Bangladesh. It is a renowned private
limited company. It established in 1986. It was incorporated under the company act. It is
a concern of ABC group. The company is the brainchild of the prominent entrepreneur
named Abu Bakar Chowdhury. Thinking about the increasing demand of steel in the
country this prominent entrepreneur decided to set up this factory. The factory of this
company is located at Nasirabad beside Baizid Bostami road in Chittagong. Now the total
production capacity of the company is 15 ton per hour. The company is using latest and
sophisticated technology to manufacture product. Baizid Steel Industries Limited (BSIL)
has a modern chemical analysis and physical testing lab to ensure the quality of the
product.
Baizid Steel Industries Limited (BSIL) is led by a group of dedicated
professionals in each department and each department is led by a highly qualified
managing director who is leading the company to meet the challenge of future marketing.
The company has several departments like production department, sales department,
marketing department, purchase department and human resource department. At present
total number of officials of Baizid Steel Industries Limited (BSIL) is about 150 and the
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number of worker is about 300. The number of workers work in the factory is of two
types – permanent workers and temporary workers. The number of temporary workers
varies according to the volume of production. During peak season more number of
workers is engaged in factory. And in the off peak season like rainy season the number of
worker is curtailed.
A visit to the mill is sure to impress any visitor by the huge range of activities
going on there and the enormous facilities the mill possesses.
ORGANIZATIONAL OBJECTIVE OF BSIL
The company has a lot of minor and major objectives out of which few are
mentioned below:
1. To provide standard rod
2. To capture a good market.
3. To export the product in future.
4. To earn a handsome profit.
5. To market the rod at an affordable cost.
6. To do different social activities.
7. Overall to provide the best service.
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ORGANIZATIONAL STRUCTURE OF BSIL
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ManagingDirector
Chief Executive Officer
Assistant General Manager
ManagerProduction
ManagerSales
ManagerMarketing
ManagerAdministration & Purchase
Senior Executive HR
Foreman
Production
Assistant Manager Sales
Executive Marketing
ExecutiveAdministration
Executive HR
In chargeStock & Division
In chargeStore
In chargeLab
AssistantStock &Lab
AssistantStore
AssistantLab
PRODUCTION SYSTEM OF BSIL
Baizid Steel Industries Limited (BSIL) uses effective but not the latest technology
to produce product of standard quality. The production process is carried on at night
under the supervision of a production manger. The maximum production capacity of the
machine is 10 tons per hour and the production per month is about 1800 tons. The
quantity produced is sold due to high demand in the market. Baizid Steel Industries
Limited (BSIL) is facing a number of problems in production:
Electricity Problem:Electricity is one of the important items for production in the factory. As per
requirement Baizid Steel Industries Limited (BSIL) does not get supply of sufficient
electricity per day, which hampers the production process. Tom solve this problem Baizid
Steel Industries Limited (BSIL) has installed generator machine.
Import of Raw Materials:
For production raw material is most important element. Baizid Steel Industries
Limited (BSIL) mainly depends on imported raw materials. At the time of import of
clinker and Gypsum, sometimes it faces the problem of time gap, bank credit and
harassment in port.
Manpower Problem:
Manpower is very important for any production. Sometimes Baizid Steel
Industries Limited (BSIL) encounters the problem of lack of skilled worker in the factory.
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PROCUREMENT POLICY OF BSIL
Raw materials are the most important elements for the production of any product.
Basically two raw materials are used for the production of Baizid Steel Industries Limited
(BSIL) given below:
1. M .S. Billets
2. M. S. Ingots
Out of the raw materials consumed 80% is imported from India and the
remaining 20% is imported from Malaysia, China, UK and Singapore. Besides the scrape
colleted from local suppliers is responsible for a little percent of raw materials.
It is noteworthy that best raw materials for prime quality product is available in
Malaysia and so the management of Baizid Steel Industries Limited (BSIL) always tries
to import such raw materials from Malaysia.
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MARKETING MIX
Baizid Steel Industries Limited (BSIL) is active in marketing management. The
marketing department analyses, makes planning, implements and controls the programs
designed to create, build and maintain beneficial exchanges with target buyers for the
purpose of achieving organizational objective of Baizid Steel Industries Limited (BSIL).
It always analyzes marketing opportunities and threats to market and develops marketing
strategies at different level of marketing department and different stages of product life
cycle.
Then the marketing department of the company plans different marketing mix
program like:
Product Mix
Price Mix
Place Mix
Promotion Mix
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PRODUCT
Steel is an industrial product. Baizid Steel Industries Limited (BSIL) has been
producing different type of products made of steel over last 22 years. Following table
shows different feature of the products of Baizid Steel Industries Limited (BSIL):
Product features in numeric figures
Bar nominal
dia
Nominal
weight
Cross-
sectional area
Approximate lengths
(Per metric ton)
mm Kg/m mm meter feet
8 0.395 50.3 2532 8307
10 0.616 78.5 1621 5318
12 0.888 113.1 1126 3694
16 1.579 201.1 633 2077
20 2.466 314.2 405 1330
22 2.985 380.3 335 1100
25 3.854 490.9 259 850
28 4.836 616.0 207 680
32 6.313 804.2 158 518
Source: Handbill provided by Baizid Steel Industries Limited (BSIL)
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CLASSIFICATION OF PRODUCT OF BSIL
The products of Baizid Steel Industries Limited (BSIL) are shown in the
following figure:
Industrial Products of BSIL
Deformed Bar Round Bar
Prime Quality Commercial Quality
1. Round Bar: As the name is implies the shape of the product is round which is
8 mm to 32 mm in size. It is equivalent to ASTM A 615
2. D-Formed Bar :It is more popular at present as it some special qualities. It is
of two types given below:
Prime Quality D-Formed Bar: It is a product of 60 grade. It is
generally used in multistoried infrastructure. Its length is 12 meter.
Commercial Quality D-Formed Bar: It is a product 40 grade. Its
length is 15 meter. It is used in all types of constructions.
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FEATURES OF PRODUCT OF BSIL
1. Durability:
The rod made by Baizid Steel Industries Limited (BSIL) has high durability. The
durability of the company’s product is higher than those of the other competitors.
Generally the contraction made by Baizid Steel Industries Limited (BSIL) to survive for
at least twenty years. Besides the construction can sustain any earthquake for a high risk.
2. Weight:
Baizid Steel Industries Limited (BSIL) Limited is committed to ensure accurate
weight. To measure the product the company uses computerized weight bride, which
results in accurate weight. If any customer or dealer logs any complaint about the weight
of product, the marketing department enquires it. But it is matter of pleasure that the
measurement in weighting is so accurate that hardly any objection regarding weight of
the product has arisen.
3. Quality:
In today's highly technological world, there cannot be any compromise on quality.
At BSIL, this realization has led to ensuring that every product measures up to the highest
International Standards. This is the main reason why most of the quality conscious buyers
and in particular most foreign construction firms working in Bangladesh buy steel from
BSIL. Strict adherence to buyers' specifications in terms of steel grade, profile and close
tolerances on unit mass have enabled BSIL to supply steel to a number of national
projects. BSIL makes different & distinctive from others is that the mill can only use
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M.S. Billets of regular shape and proper size that means it is a hundred percent billet
based mill and the product is quality product. For ensuring high quality of the product the
management of Baizid Steel Industries Limited (BSIL) has taken following steps:
Baizid Steel Industries Limited (BSIL) asks every customer to see the “BSIL G
60” logo on the product and be sure about quality of product.
The organization ensures the quality by continuous checking process in every
stage of the production by sampling.
Baizid Steel Industries Limited (BSIL) has a modern chemical analysis and
physical testing lab to ensure the quality of the product.
BSIL is committed to the customers to take back its product if any authorized
standard lab can prove that its product quality is below the standard.
The products of BSIL are approved by BSTI, which issued certificate in the year
of 1985.
The products of BSIL are tested by BUET (Bangladesh University of Engineering
and Technology)
The products of BSIL are certified by ISO 9001: 2000
The products are produced by automated machine that ensures high quality.
Raw materials with high quality are collected.
BSIL recruit and appoint highly skilled plant engineer, specialist Chemist &
skilled and experienced worker to maintain quality.
BSIL always strictly follows BSTI requirements and manages its manufacture,
inspection and test and servicing in conformance with ISO-9001 all the time.
4. Product Life Cycle:
Baizid Steel Industries Limited (BSIL) already crossed their introduction stage
and its position in the product life cycle is growth stage to maturity stage. By spending
huge amount of money on the product improvement, promotion and distribution the
company have already captured their dominant position.
5. Brand Name:
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A brand name is a term, name, design or symbol or combination of them intended
to identify the goods and services of one seller or a group of sellers and to differentiate
them from those of the competitors. A brand is a seller promise to deliver consistency a
specific set of features, benefits and services to buyers. The brand name means a
warranty of quality. A brand can deliver up to four levels at meaning that is attributes,
benefits, values and personality. So a brand name is the view of the product, quality and
faults. Baizid Steel Industries Limited (BSIL) has now only one brand named “BSIL”.
The company requests every customer to see the “BSIL G 60” logo on the product and be
sure about its product. In respect of the time the brand had been very popular in market.
6. Packaging:
Some marketers hold the view that packaging is fifth P along with price, product,
promotion and place. Packaging is the activities of designing and producing the container
of wrapper for a product. But as an industrial product the product of BSIL is not packed.
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PRICE
The amount of the money charged for a product or a service or the sum of the
values that consumer exchange for the benefits of having or using the product or service
is called price in marketing. Price is the only element in the marketing mix that produces
revenue. The company should be very careful of this important mix. Because a little bit
change in price can make huge change in market sale. So Pricing is the most flexible and
the sensitive element in the marketing mix. But at the same time, pricing and price
competition is the number one problem facing many marketing executives. Much
company cannot handle pricing well.
Product Wise Pricing of BSIL:
The product wise pricing of the company is given below:
1. Prime Quality Product- TK. 47,500 per ton.
2. Commercial Quality Product- TK.46, 500 per ton.
The prices fluctuate according to competitor’s price, cost of raw materials,
demand in the market and factors.
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FACTOR INFLUENCING THE PRICING OF THE
PRODUCT OF BSIL
A company’s pricing decision is affected both by company’s internal factors and
external environmental factors, which are shown in the following table:
Internal Factors External Factors
1. Marketing objectives. 1. Nature of market and demand.
2. Marketing mix strategy. 2. Competition of current market.
3. Production Cost 3. Others environmental factors.
Baizid Steel Industries Limited (BSIL) considers the best time comes for price
setting. Basically they focus on the demand of the market and competition. That means
the company is highly affected by the external factors. The company always meets the
market demand and it wants to get the market leadership. There is no doubt that the
company must consider the reseller through whom it earns the profits. From the group
discussion with top-level managers we have come to know that reseller contribution is
much more than others factors on the profit. The company always considers the internal
factors, which are fully controllable by the top level of management.
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PRICING APPROACHES AND STRATEGIES OF BSIL
Baizid Steel Industries Limited (BSIL) follows different pricing approaches and
strategies given below:
1. Cost-Based Pricing:
The simplest pricing method is cost plus pricing adding a standard markup to the
cost of the product. Construction companies, for example, submit job bids by estimating
the total project cost and adding a standard markup for profit. The method is popular
because
First, the company is more certain about costs and demand. By adding the price to
cost, it simplifies pricing.
Second, as all firms in the industry generally use this pricing method, prices tend
to be similar and price competition is thus minimized.
Third, the company management feels that cost-plus pricing is fairer to both
buyers and them for calculation.
Baizid Steel Industries Limited (BSIL) followed the cost based pricing at the
initial stage of the production but after few years it was withdrawn. It is notable that the
cost based pricing is popular for the new companies which has just entered or are
thinking to enter into the market. The new company generally cannot follow any other
pricing method.
2. Competition-Based Pricing:
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Consumer will base their judgment of a product value on the prices that
competitors charge for similar products. Here we discuss two forms of competitions
based pricing:
Going-rate Pricing: in going rate pricing, the firm bases its price largely on
competitors’ price, with less attention paid to its own costs or to demand. The
firm might charge the same, more or less than its major competitors. Going
rate pricing is very popular. When demand elasticity is hard to measure, firm
feels that the going rate price represents the collective wisdom of the industry
concerning the price that will yield a fair return. They also feel that holding to
the going price will prevent harmful price.
Seal-bid Pricing: competition based pricing is also used when firms bid for
jobs. Using such pricing, a firm bases its price on how it thinks competitors
will price rather than on its own costs or on the demand. The firm wants to win
a contract require pricing lower than other firms. Yet the firm cannot set its
price below a certain level. It cannot price below cost without harming its
position. In contrast the higher company sets its price above its cost, the lower
its chance of getting the contract.
Mainly Baizid Steel Industries Limited (BSIL) follows such pricing, as it is the
best system to survive in market. The company all the time has a watchful eye on the
current market price and change its product price making consistence the price of the
main competitors. Even a slightest change in the price of the competitors product make
the management of Baizid Steel Industries Limited (BSIL) concerned to take new
competitive pricing decision.
3. Geographical Pricing:
A company must also decide the price of its products considering the customers
located different parts of a country or world. It may be of different types like FOB-origin
pricing, uniform-delivered pricing, zone pricing, basing point pricing, freight –absorption
pricing. Baizid Steel Industries Limited (BSIL) sometimes uses this strategy to attract the
customers of all places. It uses it locally. The company set ups two or more zones to set
up such pricing strategy.
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4. Promotional Pricing:
With promotional pricing companies will temporarily price their products below
cost. Promotional pricing takes several forms. Generally manufactures will sometimes
offer cash rebates to the customers who buy the product from the dealers within a
specified time. With promotional pricing Baizid Steel Industries Limited (BSIL)
temporarily prices their products below cost. Promotional pricing takes several forms.
Generally BSIL offers discount and commission.
5. Segmented Pricing:
Selling a product or service at two or more prices, where the difference in prices
is not based on difference in costs. Baizid Steel Industries Limited (BSIL) sells the
product or service at two or more prices. Some times they sells the cement with a
smallest profit to a group of new customer only for entering the market. Besides at rainy
season Baizid Steel Industries Limited (BSIL) is very careful in reduction of pricing.
6. Discount & Allowance Pricing:
Baizid Steel Industries Limited (BSIL) extends cash discount pricing especially to
those customer who regular pay price within credit period. Besides quantity reduction
pricing is also applied for the customer who buy large volumes. Baizid Steel Industries
Limited (BSIL) has a target and if any reseller purchases huge quantity of product at a
time and full fill the target; he is rewarded with quantity discount.
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PLACE
Place means distribution of product. Product is distributed through distribution
channel. Distribution channel is a set of independent organizations involved in the
process of making product or service available for use or consumption by the consumer
or business user. Several types of flows connect all of the institution in the channel.
Business markets commonly include multilevel distribution channel.
The channel of distribution may be of following types:
1. Manufacturer Customer
2. Manufacturer Reseller (Agent/Dealer) Customer
3. Manufacturer Reseller (Agent/Dealer) Retailer Customer
Here first channel of distribution is called zero level channel. Second and last one
is called one level channel and two level respectively. In general industrial product
doesn’t not so long distribution channel as it is in case of consumer products.
Baizid Steel Industries Limited (BSIL) considers the following factors to give any
body agency and to involve anybody as a channel member:
Financial condition of the willing dealer
Marketing capability
Previous background the dealer
Marketing experience
Honesty
Place of shop
Goodwill of the channel member.
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CHANNEL OF DISTRIBUTION USED BY BSIL
Baizid Steel Industries Limited (BSIL) does not follow any specific distribution
channel. The company uses different types of channel of distribution for marking its
product on the basis of market demand. Most often the customers of their products
purchase from the factory directly.
Channels of distribution used by BSIL are discussed in the below------
1. BSIL Customer
2. BSIL Retailer Customer
3. BSIL Agent Retailer Customer
1. Zero level distribution Channel: BSIL sell its products directly to the
customers. Any customers with any requirement can order the company for direct sale to
them. Any customer can call the sales department to loge their requirement without going
through any middlemen. The corporate customers like Equity Property, Ideal
Development, TK Group, Well Group, Diamond holdings do not go through any channel.
The company sell products to them directly which result in cost effectiveness. This type
of distribution channel is responsible for a big volume of sales.
2. One level distribution channel: BSIL uses this channel to reach product to the
customers having small amount of demand. The channel member may be either a retailer
or an agent.
3. Two level distribution channel: BSIL uses this channel to expand market all
over the country. It has appointed agents in the different region of the country who
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transport goods from the factory to their respective sales office and sell them to the
retailer and ultimately the retailers sell goods to the consumers.
IMPORTANT ASPECTS OF DISTRIBUTION CHANNEL
USED BY BSIL
Following discussion reveals the important aspects of the channel of distribution
used by BSIL:
1. Distribution channel of the company is most sound and strongest in the
city of Chittagong.
2. BSIL mostly sells its cement directly to the customers. The system is
working quite efficiently and smoothly.
3. The corporate customers of the company are Equity Property, Ideal
Development, TK Group, Well Group, and Diamond holdings etc, which
perform direct sale from the company.
4. The company has not any private carrier of its. It depends on the private
transport company for carrying goods. The company transport goods to
the customer at the their request if necessary. It provides free transport
service to the valuable customers.
5. The company has agent in the city of Shylet, Chittagong, Dhaka and Cox-
bazar.
6. The company uses selective distribution channel of distribution.
7. Agents don’t require depositing any amount of money for getting agency.
8. The company hasn’t experienced still any channel conflict.
9. The company receives order by mail, email, and telephone and through
salespeople.
10. The company uses computerized order processing system, which speeds
up the order-shipping-billing cycle.
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WAREHOUSING OF BSIL
The warehouse of Baizid Steel Industries Limited (BSIL) is situated inside the
factory. It is notable that there is no warehouse outside Chittagong. The warehousing
place is very safety and the internal environment of the warehousing place is suitable for
keeping the products in good condition. In the wet weather no problem is created for
storing rod. Generally no product is stored for long time as the management of Baizid
Steel Industries Limited (BSIL) is always makes wise decision regarding production
considering demand because it may reduce the standard of rod. Maximum three weeks
any product is stored in the warehouse. Wet season is the peak season of warehousing as
demand falls a bit in this season. The management for warehousing is standard. The
security system of the warehousing house is appreciable too.
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PROMOTION
Promotion is one of the four major marketing mixes. In modern marketing system
it is very important for developing good product, pricing it actively and making it
accessible to target customers. The main promotional tools are advertising, sales
promotion, public relation and personal selling. The main promotional objectives of BSIL
are given below:
To create high demand.
To face competition.
To survive in the competitive market
To introduce about the product of the company.
To build-up god will.
To get world wide market
To increase profit.
For this purpose the company prefer newspaper, magazine, sponsorship,
signboard, festoon and sticker. At the time of selection of these media they consider
goodwill and selling quantity. At time of selection of these media they consider the user,
organizational good will, selling quantity. But the most effective promotional activities of
BSIL is to motivate the sales force and resellers:
To assure accurate measure
To prescribe about ISO certificate.
To remind about the product quality
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PROMOTIOAL TOOL USED BY BSIL
Baizid Steel Industries Limited (BSIL) uses sales promotion and advertisement
mainly for promotion. The main promotional tools of Baizid Steel Industries Limited
(BSIL) are as follows:
1. Advertising: In case of advertising the company the company mainly considers
the cost. Besides the company budgets an amount of money for annual advertising
annually. The company uses the following media for advertisement:
Print media like publication
Local and national newspaper
TV channel
Notice
Sign board
Bill board
Project display board
2. Sales promotion: It is short-term incentives to encourage the sale of a product.
The company uses following sales promotion tools:
Sample of products
Discount
Credit sales
Allowance
Commission to agent
Gift for valuable customer
Corporate client conference.
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3. Personal selling: The sales force of Baizid Steel Industries Limited (BSIL)
personally visit the retailers, customers, corporate customers to give idea about its
product and try to promote the sales.
SWOT OF BSIL
STREGHTHS:
1. Quality of the products of BSIL
2. Best technical and managerial support
3. Direct distribution to the end users
4. Long time experience in MS product
5. Goodwill
WEAKNESS:
1. Labor unrest
2. Depending on outside transport
3. Lack of skilled human resources in every level of production and management.
4. Always cannot ensure every size of product
OPPORTUNITIES:
1. New Machine will be installed within few years to double the production volume,
which results in increase in sales volume.
2. Support of engineers and developers.
3. Increasing demand of the rod gradually.
THREATS:
1. Demand may decrease in future
2. Support from financial institutions may decline if loan cannot be repaid in due
time.
3. Support Government may decreases.
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4. Fluctuation in foreign currency may leave affect on increasing price, which may
results in losing profit.
5. New competitors in steel industry may be a great threat to the company.
6. New environmental protection act may affect the production system as well as
production volume.
PROBLEMS OF BSIL
Our group has been able to find out the following problems hampering the
performance of BSIL:
1. BSIL does not use any scientific method to assess the demand of its product in the
market. It produces as much as it can and due to high demand luckily all the
products are sold. But it may face problem when its production capacity will
increase because of installing new machine in future.
2. In BSIL there is no use of special statistical and mathematical techniques to take
any marketing decision. The relevant department and the other department are not
familiar with such practice.
3. BSIL does not have own track to carry the finished good to the agent, retailer and
consumer.
4. The standard of the production system used by the company at present is not so
modern.
5. The company’s products have high demand but it cannot increase the production
volume because of limitation of production system.
6. The company is not so careful of maintaining labor friendly environment to in the
factory.
7. The company put more importance on the local market of Chittagong which is not
a good strategy because in future the local demand of Chittagong market on
reduce and the company may face decease in sales volume.
8. The number of corporate customers who are responsible for big volume of sales is
not satisfactory.
9. Warehousing system is not so developed.
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10. The job of skilled workers in the factory is not permanent. It puts more
importance on temporary worker to minimize cost. But because of temporary job
the turnover of skilled worker is very high in the factory as a result of which
sometimes the company faces the problem of lack of skilled workers.
11. Promotional planning is not so effective.
12. Bureaucracy in the different levels of management exists and so sometimes quick
decision-making process is disturbed.
13. The main competitors of BSIL like BSRM, KSRM, Basundara Still Mill have
started exporting products at a higher price than local market price and making
handsome profit but still Baizid Steel Industries Ltd (BSIL) is not thinking of
exporting products abroad.
14. Proper documentation of each and every information is not maintained.
15. The organization gives less emphasis on advertisement of its product, which
leaves a negative affect on the promotion of products.
16. The officials of sales department are not trained up regularly to expand market
share.
17. The company does not perform societal marketing to build up its image.
18. The company does not use environment friendly production system and it is
polluting surrounding environment of its factory area.
19. The company has short-term production plan. It has not any long-term production
plan for five years or more as a competent firm has.
20. In the off peak season the company cannot make proper balance between demand
and supply and so the stock of product is much during the off peak period which
indicates unsatisfactory performance in the inventory management of Baizid Steel
Industries Ltd (BSIL).
21. The lifetime of the company is about 22 years but still the company has not been
able to build its image, as some new competitors have been able within short
period of time.
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RECOMMENDATION
Following recommendations can be made for the betterment of the performance
of the company:
1. BSIL should use scientific method to assess the demand of its product in the
market.
2. The standard of the production system used by the company at present should be
further improved.
3. BSIL should focuses on the diversification of its products to meet the new and
potential demand of the customers.
4. The company should increase the production volume by installing new machine
as it has been informed that the product of company has high demand in the
market.
5. The company should maintain labor friendly environment to motivate the workers
in the factory.
6. The company should think about the expansion of the market all over the country
as in future the local demand of Chittagong market on which it put more
importance, may reduce.
7. The number of corporate customers who are responsible for big volume of sales
should be increased.
8. Warehousing system should be improved so that the quality of the product isn’t
deteriorated if the product is stored for a long time.
9. The job of skilled workers in the factory should be made permanent otherwise the
problem of lack of skilled workers that the company sometimes faces will not be
removed.
10. Promotional planning should be effective.
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11. Bureaucracy in the different levels of management should be minimized and
decision-making process should be faster.
12. The company should think of exporting product at a higher price than local
market price.
13. Delivery schedule should be planned and adhered to that order. Communication
between factory and head office should be improved so that the committed
delivery schedule is realistic with production capacity.
14. Proper documentation of each and every information should be maintained.
15. The organization should give more emphasis on advertisement of its product.
16. Sales department should be more effective to expand market share.
17. The company should use environment friendly production system otherwise in
future the company may face problem created by environmental protection act
and the environmentally conscious pressure group.
18. In the off peak season the company should make proper balance between demand
and supply so that the stock of product is not much.
19. The company should frequently update the marketing strategy
20. The company should carefully observe the strategy used by its main competitors
like BSRM, KSRM, Basundara Still Mill.
21. The company should perform societal marketing to build up its image.
22. It should make long term plan.
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QUESTIONNAIRE
Questions about Profile of the Company
1) Name of the company:
Baizid Steel industries Limited
2) Registered office:
Nasirabad I/A, Baizid Bostami Road, Chittagong.
3) Location of Factory:
Nasirabad industrial area.
4) Types of enterprise:
Manufacturing firm.
5) The year of establishment:
1986
6) Year of commencement of production:
1986
Questions about Management
7) What is the management system of your company?
No answered.
8) Organizational structure?
Enclosed separately.
9) What is the number of workers?
300.
10) What is the numbers of manager & staff?
150
11) What is the working hour?
08 hours per shift
12) What are the bases of employee promotion?
Performance
13) What type of incentive/motivation do you offer to your workers?
Production bonus, festival bonus, leaves allowance, shoe and clothe allowance
etc.
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14) Do you think that your workers or stuff have job satisfaction?
Yes
Questions about Production
15) Who is in charge of procurement of materials and stores?
Senior manager (procurement)
16) What are the basic raw materials used?
M.S Billet
17) What are the sources of raw materials?
UK, India, Malaysia
18) What is the production capacity of the materials?
. 10 tons per hour and 1800 tons per month
19) What type of technology do you use?
Automatic foreign technology
20) Do you have any production plan?
Yes but short term.
21) What is the production plan of 2005 and how much you achieved?
Yes.
Questions about Product
22) What are the products of your firm?
A handbill was provided.
23) What is the brand name of your products?
BSIL
24) Do you pack your product?
No
25) Do your products have ISO standard?
Yes. 9001-2000
26) Do you practice TQM?
Yes.
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Questions about Price
27) What type of pricing policy do you use?
Cost based pricing, competitor based pricing, geographical pricing, segmented
pricing, promotional pricing.
28) Do you use any pricing strategy?
Yes
29) What are the factors that influence pricing?
Price of raw materials, fluctuations of foreign exchanges, local procurements etc.
30) Is there any price discrimination?
Yes but it is kept secret.
31) Is there any seasonal variation of price of the products?
Yes. In wet season price is low.
Questions about Channel of Distribution
32) What marketing strategy do you prefer to follow?
Direct marketing
33) What are the functions of your marketing department in your firm?
Planning of weekly, monthly, & yearly sales, executing the plan.
34) What distribution channel do you use?
Three types.
35) Do you provide transport service to the channel members?
Sometimes.
36) What are the areas of distribution?
Chittagong, Dhaka, Shylet.
37) Do you export any products?
No
38) How do you select the channel members?
On the basis of goodwill & financial condition.
39) Is there any warehouse outside the factory?
No
40) What are the channel objectives?
Long discussion.
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Questions about Promotion
41) What is the amount of annual promotional budget?
Not answered
42) What are the promotional tools?
Advertising, Sales promotion, Personal Selling.
43) What are the advertisement media you use for the promotion of the products?
Advertising, sales promotion, personal selling.
44) What promotional strategy do you use in your company for products?
Not Answered.
45) What are the media of advertisement?
Print media like publication, Local and national newspaper, TV channel, Notice,
Signboard, Billboard, Project display board.
Other Questions
46) What is the sale Volume of the products?
1800 tons per month
47) What is the revenue per year?
Not answered.
48) What is the peak period for your products?
Dry season
49) What is the target sale in the next 3 years?
Not answered.
50) Does your factory cause any environmental pollution toward locality?
Yes. But the company is trying to control pollution.
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CONCLUSION
It is found from the study that the performance of Baizid Steel Industries Limited
(BSIL) is satisfactory but not outstanding. Still the company is improving but very
slowly. Its lifetime is about 22 years, which is a long period of time but still is the
company is not performing so well as its competitors like BSRM, KSRM are doing. It is
notable that the future of our local steel manufacturers is very bright. So if the company
can implement the recommendation, it will be able to capture a good market in future.
Finally we, the members of GROUP- pray to Almighty for continuous improvement and
prosperity of Baizid steel industries Limited.
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REFERENCE BOOKS
PRINCIPLES OF MARKETINGBy-Philip Kotler & Garry Armstrong
MARKETING MANAGEMENTBy-Philip Kotlet
FUNDAMENTAL OF MARKETINGBy-William. J. Stanton
BASIC MARKETINGBy-F.J. McCarthy
MARKETING: STRATEGIC FOUNDATIONBy-J. S. O. Panwar
MARKETINGBy-S.N. Rajan Nair
REFERENCE REPORTS AND FIELS
Different Previous Internship Reports Handbills supplied by the company Paper cuttings
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