Final Value Analysis

8/13/2019 Final Value Analysis

1/62

Letter of Submission

07thSeptember, 2013.

To

Mr. S.M.Salmat Ullah Bhuiyan,

Professor,

Department of Maretin! Stu"ies an" #nternational Maretin!,

Uni$ersity of %hitta!on!.

Sub&e't( Submission of Internship Report.

Dear Sir,

)ith "ue respe't # *oul" lie to 'on$ey my no*le"!e that as a part of the re+uirement

for the fulfillment of the MB Pro!ram # ha$e prepare" my internship report after

su''essful t*o month internship atta'hment at -atanpur Steel -erollin! Mills /t".

-S-M . The #nternship report 'on'entrates on %ompititi$e "$anta!e of -S-M *ith

its /imitations an" a Mo"el of Solution.4o* # lie to submitt my paper to you.)ithout

your sin'ere 'ooperation an" proper !ui"an'e it is not possible for me to prepare the

report. 5or this a't of in"ness # am !rateful to you.# ha$e attempte" my le$el best to

prepare the paper this report.

# re+uest your mo"esty an" !ra'ious 'onsi"eration to a''ept my paper as it may suffer

from some short'omin!s .# belie$e an" hope that one *ill fin" this paper informati$e an"

enli!htenin! an" *ill help future resear'hers for e6ten"e" resear'h in this fiel".Therfore

# hope that this *ill meet the stan"ar" of your &u"!ement.

Sin'erely yours,

Mohsina hter,MB, #D 4o( 0730809:

Session( 20102011Department of Maretin! Stu"ies an" #nternational Maretin!,

Uni$ersity of %hitta!on!.


2/62

Acknowledgement

Al-hamdulillah*ho has !i$en me the stren!th ; 'apability to 'omplete the #nternship

-eport. Besi"es this # am !rateful to some parti'ular persons *ho ha$e helpe" an"en'oura!e" me at ea'h ; e$ery step.

t the $ery outset # e6ten" my heartiest !ratitu"e to my honorable tea'her ProfessorMr.

S.M. Salamat Ullah Bhuian, Professor ;


3/62

Prefa'e

The internship pro!ram, a part of the a'a"emi' "is'ipline, for the MB stu"ents in

#nternational Mana!ement has been "esi!ne" to a'+uire pra'ti'al no*le"!e. #t is

e6pe'te" that, the inte!ration of no*le"!e in theories an" pra'ti'es *ill enable us to

be'ome effe'ti$e. Throu!h the internship pro!ram, # ha$e !ot the 'han'e to a'+uire some

e6perien'e, *hi'h is e6pe'te" to enli!hten my 'areer.#t>s really a !reat opportunity to

ha$e the 'han'e to 'on"u't internship pro!ram in the -T4PU- ST


4/62

&'ecuti(e Summer

The report emphasies on %ompetiti$e "$anta!e of -S-M,that hi!hli!hts its 'ore

'ompeten'ies,$alue 'hain anlysis an" the 'ompetiti$e strate!ies.To attain these isuues #

ha$e 'olle'te" "ata from primary an" se'on"ary sour'es .# ha$e 'olle'te" primary "ata

throu!h +uestionnaire an" inter$ie* *ith the e6e'uti$es of the steel 'ompanies an" the

"e$eloper 'ompanies.

%ompetiti$e a"$anta!es !i$e a 'ompany an e"!e o$er its ri$als an" an ability to !enerate

!reater $alue for the firm an" its sharehol"ers. The more sustainable the 'ompetiti$e

a"$anta!e, the more "iffi'ult it is for 'ompetitors to neutralie the a"$anta!e.

Calue 'ahin is a tool for i"entifyin! *ays to 'reate more 'ustomer $alue that ultimately

lea"s a 'ompany to a'hei$e 'ore 'ometen'eis.

%ore 'ompeten'ies are the sour'es of 'ompetiti$e a"$anta!e in that it maes a si!nifi'ant

'ontribution to per'ei$e" 'ustomer benefits, that ha$e appli'ations in a*i"e $areity of

maret an" that are "iffi'ult for 'ompetitors to immitate.

To a'hei$e 'ore 'ompeten'ies a 'ompany shoul" follo* 'ompetiti$e

strate!y.%ompetiti$e Strate!y means lon!term a'tion plan that is "e$ise" to help a

'ompany !ain a 'ompetiti$e a"$anta!eo$er its ri$al.

fter analyin! all the issues it is foun" that -S-M ha$e the !reater opportunity to

'apture a lar!e maret share in near future.


5/62

Table of Contents

!hapter)*+ Introduction Page

#ntro"u'tion.................................................. ............................ 2

Ba'!roun" of the stu"y............................................................ 2

-esear'h problem...................................................................... 3

?b&e'ti$e of the stu"y............................................................... 3

Metho"olo!y of the stu"y......................................................... 8

S'ope of the stu"y.....................................................................

/imitation of the stu"y...............................................................

!hapter),+!ompetiti(e Ad(antage and -alue !hain Analsis

Meanin! of %ompetiti$e "$anta!e.......................................... E

The


6/62

!hapter)0+ Appendi'

Fuestionnaire on steel in"ustry......................................... 81

Fuestionnaire for 'orporate 'ustomers............................... 8

Photo @alary of -S-M..................................................... 91

Biblio!raphy....................................................................... 92


7/62

Chapter1

Introduction


8/62


9/62

Research problem

Ban!la"esh is a "e$elopin! 'ountry.5or the infrustru'tural "e$elopment of the 'ountry

@o$t. tae steps to 'onstru't o$erbri"!e,bri"!e,monuments et'.#n"ustrial se'tor as *ell as

the business se'tor also "e$elope" "ay by "ay.So for in"ustry lie !arments

et',offi'es,shopin! malls,hi!h rise buil"in!s shoul" be buil" up.Moreo$er,our 'ountry

people al*ays "reamt for a house that heHshe *oul" use for himselfHherself an" for the

ne6t !eneration also.To buil" up all these ne'essary 'onstru'tions the essential element is

ro" or rollin! steel bar.Men are no* more 'ons'ious about the en$ironment an" the

natural 'alamities.To prote't their life they *ant that *hat they buil" up shoul" be stron!

enou!h .So for these 'onstru'tion they *ant to use the ro" that is earth+uae resistant.The

home buil"er or the realstate 'ompany ,"urin! my sur$ey, 'laims that the "u'tility of the

ro" of e$ery 'ompany is enou!h more an" e$ery 'ompany "o the


10/62

Methodolog of the Stud

Metho"olo!y refers to the o$erall pro'e"ure of the resear'h.To 'on"u't any resear'h

fla*lessly an" 'ome up *ith any "e'ision, the information ser$es as stan" point. The

ma&or tas of the resear'h is the !atherin! of "ata so that he Hshe 'an 'ome up *ith a final

'on'lusion an" re'ommen"ation. 5or this resear'h the re+uire" "ata 'an be 'olle'te" by

usin! "ifferent sour'es.

Data sources:

This report is prepare" on the basis of the pra'ti'al e6perien'e !aine" "urin! the perio"

of internship. The information has been 'olle'te" from primary sour'es as *ell as

se'on"ary sour'es.

Primar Sources+

The primary "ata *ere 'olle'te" throu!h fa'e to fa'e inter$ie* *ith the e6e'uti$es of

-S-M *ith a +uestionnaire an" also *ith the e6e'uti$es of 'ompetitors of -S-M lie

BS-M an" @P= an" also inter$ie* *ith a +uestionnaire from the "e$eloper 'ompany.

Secondar Sources+

# ha$e been 'olle'tin! se'on"ary information from the *ebsite, arti'les, proposal letter

of the 'ompany,an" pre$ious reports ,prospe'tus, annual report pro$i"e" by the

'ompetitors 'ompany *hile $isitin! them.

Research Design

Descriptive an" guided in"epth inter$ie* te'hni+ue *as use". Maret response

assessment is a 'omple6 topi' an" it has a number of "imensions. So, "es'ripti$e

resear'h is +uite useful. To in'rease the validityof the "is'ussion, 'he'list *as use" to

ai" the stu"y. The population of this resear'h 'onsists of all the 'ompetitors in the

%hitta!on! metropolitan area.

Rationale behind using direct inter(iew+The information that *as pro'urin! from the respon"ents is $ery strai!htfor*ar" in

nature, so $erbaliin! this information *oul" not be a problem.

Moreo$er, it *as $ery important that respon"ents un"erstan" the un"erlyin! purpose of

the resear'h so that they 'an pro$i"e rele$ant informations.


11/62

Population:

Population means set of entities un"er stu"y.

5pr 'on"u'tin! this resear'h, the respon"ents are taen from the list of 182 "$eloper or

real estate 'omanies *ho are the 'ustomer of steel 'ompanies population operatin! in

%hitta!on! an" another respon"ents are taen from the list of 7 rerollin! steel mills *ho

pro"u'e !ra"e" "eforme" bar in %hitta!on!.

Sample size:

The number of items or units in'lu"e" in the sample from the total population is 'alle"

the sample sie. #n the stu"y, the sample has been "etermine" throu!h &u"!ment

samplin!.

Sample size of the developer company:17 'orporate 'ustomers or "e$eloper 'ompanies

are sele'te" as sample from the list 182 "e$eloper 'ompanies.Small sample sie has been

'hoosen be'ause of 'omple6ity in lar!e sample sie, 'ost, an" limite" time .

Sample size of the steel company:02 steel 'ompanies *ho are the 'ompetitors of -S-M

are sele'te" amon! the 07 rerollin! steel in"ustry.

Sampling method

The sample sele'tion is base" on Au"!ement Samplin!.

"udgment samplingis a non probability te'hni+ue in *hi'h an e6perien'e" in"i$i"ual

sele'ts base" on the &u"!ement of the e6perise.

-S-M itself pro$i"e" me the samples for resear'h as the samples they pro$i"e" are

reno*ne" in the %hitta!on! metropoliron area an" from these it *oul" be possible to !et

the re+uire" "ata.

Data Collection Instruments

4uestionnaire+

5or 'olle'tin! "ata questionnaires are use" as "ata 'olle'tion instrument. #n this

+uestionnaire, the +uestions are base" on the types of information, *hi'h is "eri$e" from

the spe'ifi' ob&e'ti$es

The +uestions, information sou!ht throu!h the +uestions, an" rationales behin" the

+uestions use" in the final +uestionnaire are !i$en belo* in appen"i'es.


12/62

Presentation of the data:

Data that are 'olle'te" from both the primary an" se'on"ary sour'es are presente" as

table an" also use" as the e6planation of the resear'h stu"y.

Scope of the stud

Durin! my t*o months internship pro!ram # !ot the s'ope to !ain no*le"!e about the

maretin! pra'ti'es of -S-M *hile see the a'ti$ities of the bran" mana!er,sales

e6e'uti$es an" the "i$isional mana!er .# also able to no* about =uman resour'e

mana!ement of -S-M an" !ain no*le"!e on the or"er pro'essin! an" billin! an" about

the pro"u'tion pro'ess *hen $isit the fa'atory.# *as able to no* about all these matters

by tain! fa'e to fa'e inter$ie* of the e6e'uti$es of "ifferent "epartment lie maretin!

"epartment,human resour'e "epartment *ith +uestionnaire.

Limitations of the Stud

s # "i" my internship at -T4PU- -


13/62

Chapter 2

Competitive Advantage and

Value Chain Analysis


14/62

Meaning of !ompetiti(e Ad(antage

%ompetiti$e a"$anta!e means a superiority !aine" by an or!aniation *hen it 'an

pro$i"e the same $alue as its 'ompetitors but at a lo*er pri'e, or 'an 'har!e hi!her pri'es

by pro$i"in! !reater $alue throu!h "ifferentiation. %ompetiti$e a"$anta!e results from

mat'hin! 'ore 'ompeten'ies to the opportunities.

%ompititi$e a"$anta!e is an a"$anta!e that a firm has o$er its 'ompetitors, allo*in! it to

!enerate !reater sales or mar!ins an"Hor retains more 'ustomers than its 'ompetitiors.

There 'an be many types of 'ompetiti$e a"$anta!es in'lu"in! the firm>s 'ost stru'ture,

pro"u't offerin!s, "istribution net*or an" 'ustomer support.

%ompetiti$e a"$anta!es !i$e a 'ompany an e"!e o$er its ri$als an" an ability to !enerate

!reater $alue for the firm an" its sharehol"ers. The more sustainable the 'ompetiti$e

a"$anta!e, the more "iffi'ult it is for 'ompetitors to neutralie the a"$anta!e.

'ompetiti$e a"$anta!e is *hat "istin!uishes a person or a !roup of person or an

or!aniation from the 'ompetition in the min"s of 'ustomers. )hether it may be an

employee, a business or a 'ountry, it nee"s to ha$e a 'lear 'ompetiti$e a"$anta!e an"

'ommuni'ate it to the 'ustomers.

5he &ssence of !ompetiti(e Ad(antage

To be!in, it may be helpful to tae a more in"epth loo at *hat it means to ha$e a

'ompetiti$e a"$anta!e( an e"!e o$er the 'ompetition.


15/62

important to the enterprise. =o*e$er, a 'ompetiti$e a"$anta!e is often a sin!le ey

element that !i$es an e"!e to a business beyon" *hat the 'ompetition has or "oes.

-ALU& !6AI$ APPR2A!6 72R ASS&SSI$8 !2MP&5I5I-& A1-A$5A8&

5he -alue !hain 1efined

The i"ea of a $alue 'hain *as first su!!este" by Mi'hael Porter 1:E9 to "epi't ho*

'ustomer $alue a''umulates alon! a 'hain of a'ti$ities that lea" to an en" pro"u't or

ser$i'e.

Mi'hael Porter i"entifies $alue 'ahin as a tool for i"entifyin! *ays to 'reate more

'ustomer $alue.

Porter "es'ribes the $alue 'hain as the internal pro'esses or a'ti$ities a 'ompany perform

to "esi!n, pro"u'e, maret, "eli$er an" support its pro"u't. =e further states that a

firmGs $alue 'hain an" the *ay it performs in"i$i"ual a'ti$ities are a refle'tion of its

history, its strate!y, its approa'h to implementin! its strate!y, an" the

un"erlyin! e'onomi's of the a'ti$ities themsel$es.

5he 8eneric -alue !hain+

The $alue 'hain i"entifies nine strate!i'ally rele$ant a'ti$ities J fi$e primary an" four

support a'ti$itiesthat 'reate $alue an" 'ost in spe'ifi$ business.


16/62

Primar acti(ities of RSRM+

Inbound logistics:

The 'hemi'al 'omponents,ma'hineries,po*er plants,pro"u'tion plants of -S-M all are

the inboun" lo!isti's of it.

To pro"u'e "eforme" bar it is nee"e" fully automate" ma'hine that -S-M ha$e.#t has three pro"u'tion plants.?ne is to pro"u'e 900*TMT bar ,ne6t one is to pro"u'e

@ra"e0 bar an" the other one is to pro"u'e @ra"e80 bar.

-S-M uses 'hemi'al 'omponents lie %arbon' ,Man!anese Mn, Sili'on Si, Sulfur

s, Phosphorus p an" %opper 'u, %hromium %r, 4i'el 4i et'. to pro"u'e billet.

RSRM also uses scraps to produce billet.Altough e(er re)rolling mill uses scraps

and chemical components to produce deformed bar but the difference is here that

all firms ha(e not the accessibilit.8P69BSIL ha(e half of the capacit to produce

rod than RSRM.:here RSRM produce /0; tons per da 9BSRM produce /;; tons

per da.

Operations


17/62

-S-M pro"u'e "eforme" bar from billet an" billet is pro"u'e" from s'raps.

Scrap < billet < rod

To pro"u'e "eforme" bar at first s'raps are meltin! an" then 'hemi'al 'omponents are

a""e".Then after pro'essin! a hot bar is pro"u'e".Then it is ept for 'oolin! *ith the

natural air.fter 'oolin! it !ets the form of billet.Then a sample of billet is teste" throu!h

the +uality 'ontrol ma'hine.#f there is any !ap of 'hemi'al 'omponents then these are

a""e" an" if there is a''ess of 'hemi'al 'omponents then the +uantity is re"u'e".fter

that,if e$erythin! is oay then the billet is entere" into the auto rerollin! ma'hine to

pro"u'e "eforme" bar or ro".

#f broa"ly e6plaine", "eforme" bars are pro"u'e" from !oo" +uality plain 'arbon mil"

steel billets an" *hen these billets are hot rolle" in automati' rollin! mill,bars lea$in!

fast finishin! stan" are rapi"ly +uen'he" an" 'arefully 'ontrolle" by optimiin! the *ater

pressure for their pearliti' 'ore an" tou!h surfa'e of tempere" martensile .The pro'ess

in$ol$es rapi" +uen'hin! of the hot bars throu!h a series of *ater &ets after they roll out

mill stan",the bars 'oole",allo*in! the 'ore an" surfa'e temperature to e+ualie.The bar

'ore 'ools "o*n slo*ly to turn into a ferrite Jpearlite a!!re!ate.Thus the bars attain the

property of hi!her stren!th,"u'tility an" tou!hness "ue to the formation of tempere"

martensite of outer surfa'e *ith a "u'tile 'ore .

Outbound logistics

-S-M tae or"er from the 'lients or 'ustomers throu!h telephone or online or tae

"ire'ly from the 'ustomer.

)hen 'ustomers !i$e or"er then a profile of 'ustomer is !enerate".fter that sales or"er

'onfirmation sheet is ma"e.Then "eli$ery or"er sheet is prepare" an" then sales in$oi'e,

!ate pass an" tru' "eli$ery 'hallan are !enerate".

The or"er pro'essin! system is totally a 'omputerie" soft*are system.

Then re+uire" amounts of pro"u't are "eli$ere" to the 'ustomer throu!h its o*n

transport.

Mareting and sales


18/62

lthou!h all 'ompany promote a"$ertisement throu!h broa"'ast me"ia, ne*spaper,

billboar" et'. as a 'ommuni'ation tool to promote pro"u't but these are not effe'ti$e .The

most effe'ti$e tool is "ire't maretin! an" sales promotion a'ti$ities.-S-M has the

effe'ti$e sales personnel *ho easily mae a!ree the "e$eloper 'ompany to buy its

pro"u'ts.The en!ineers, mashion su!!est a home buil"er or a pro&e't buil"er to use a

spe'ifi' ro" .So -S-M pro$i"e in'enti$es, !ift items to them.

-S-M also "o many !SRa'ti$ities that promote their bran" ima!e.

5or e6ample, out of the 'ity area -S-M pro$i"e free me"i'al ser$i'e

throu!h 'onta'tin! *ith health J'lini'.

-S-M buil" up more than12 passen!er sha"e amon! them in

%hitta!on! thre are : an" the rest of passen!er sha"e are in Dhaa

an" Sylhet.

-S-M uses roa" si!n that "ire'ts people to a lo'ation, s'hool, 'olle!e,

mos+ue, !ra$e et'.

5rom Te'hnaf to Mirsharai -S-M plante" more than ,lakhs tree

*ithin 1 hour to en'oura!e the tree plantation an" to promote the

ne'essity of !reen en$ironment.This in" of a'ti$ities promote its

bran" ima!e as en$ironment frien"ly.

-S-M also ma"e publi' a"$ertisement as their %S- a'ti$ities.5or

e6ample, a"$ertisement on Stop %hil" /abour, 4ot more than

t*o 'hil"ren, if one it is better, et'.

The pri'e of the pro"u't of -S-M is set by the top mana!ement of the 'ompany.They

follo* $alue base" pri'in! to set the pri'e.But if the 'ompetitors re"u'e the pro"u't

pri'e then it also re"u'es its pri'e but *itout 'ompromisin! its pro"u't +uality.

Service

-S-M pro$i"e loa"in! an" unloa"in! fa'ility to its 'ustomers.#f the $olume of sellin!

pro"u't is hi!h then it pro$i"es free loa"in! an" unloa"in! fa'ility *here BS-M pro$i"es

only loa"in! fa'ility.

Secondar acti(ities of RSRM+


19/62

!irm infrastructure

1. 5echnical departmentJ

2peration Jhere the te'hni'al team ,'ombination of 'hemi'al,

me'hani'al, ele'tri'al an" metalar!y en!ineer en!a!e" *ith main

pro"u'tion.

MaintenanceJthis "epartment also 'ombination of same te'hni'al

person *ho e6e'ute any in" of maintenan'e *or of the plant.

5echnical supportJthe te'hni'al support !roup pro$i"es all in"s of

support to the 'ustomer about +uality an" property of reinfor'ement

bar.

2. Sales = MarketingJ

Marketing group)

There are "i$isional sales offi'er, 'hief sales e6e'uti$e, sales

e6e'uti$e, bran" e6e'uti$e, maretin! e6e'uti$e *ho e6e'ute plannin!

pro!ram for maretin! an" sales poli'y, poli'y for bran"in!.

Sales team>

-S-M ha$e e6perien'e" sales team.?nly be'ause of them the maret

share is no* 20K.4o* -S-M is maret follo*er.Their main'ompetitor is no* LS, LS-M an" @P=. 2 years a!o the situation

*as "ifferent.t that time it *as the +uestion of their sustainability.But

no* only be'ause of them the "e$eloper 'ompany prior them than

LS, @P=.

3. 7inance 1epartment

The responsibilities of the finan'e "epartment are to allo'ate 'ash from "ifferent sour'es

lie ban or in$estment 'ompanies, an" the "istribution of 'ash for pro"u'tion or other

purposes.

8. 1epartment of Research and de(elopment>

This "epartment al*ays "oes the 'ontinuous resear'h for the "e$elopment of the pro"u't,

to brin! $arieties of the pro"u't type an" to intro"u'e ne* soft*are, te'hnolo!y


20/62

"e$elopment for the betterment of the pro"u't that *ill be more en$ironments frien"ly

an" prote't the future nation.

"uman resource management#

-S-M re'ruit employees an" labours throu!h both e6ternal an" internal sour'es.

)hen from e6ternal sour'es they re'ruit them throu!h a"$ertisement in ne*spaper or

online 'ir'ulations.Then after tain! inter$ie* they sele't them an" assi!n the

responsibilities on the basis of thei +ualifi'ation an" e6perien'ee.-S-M pro$i"e trainin!

fa'ilities to mae them effi'ient an" sille" personnel.

The top mana!ement al*ays re$ie* the performan'e appraisal of the employees .Then if

the performan'e is better the mana!ement of -S-M pro$i"e promotions,!ifts or

in'enti$es as re*ar" to moti$ate them.

-S-M pro$i"es t*o bonuses e$ery year an" one bonus is e+ual to the onethir" of the

basi' salary.-S-M pro$i"es transport fa'ilities for the mana!ers.

There is !oo" relationship bet*een the employees an" the top le$el mana!ement.

smooth relationship bet*een the employees an" top le$el mana!ement also moti$ate

the employees.

#f any labor in&ure" throu!h a''i"ent then -S-M pro$i"e in'enti$es to him. ll 'ost for

the treatment bear by -S-M .If an labour in3ured seriousl than he is compensated

with * lakh taka.

Procurementpur'hasin! of ra* materials,supplies an" other 'onsumable

items as *ell as assets.

-S-M has o*n suppliers of ra* materials

!rom local maret$$

MOD%R& Steel Mills 'td (MSM')

Ratanpur ship recycling industries limited*

!rom international maret#

The mana!in! "ire'tor of -S-M an" MSM/ an" also the %hairman !o abroa" to

'ole't ra* materials.They 'olle't ra*materials from

5hailand


21/62

5urke

South Africa

USA

U? et', *hereas BS-M 'olle'ts ra* materials from 5UR?&%9

!6I$A A$1 I$1IA.

+echnology development#

-S-M intro"u'es familiar soft*are name"


22/62

'ost of the ser$i'e of loa"in! an" unloa"in! fa'ilty et'.

-ertical linage analysis:-S-M analyse the relationship *ith the supplier, "istributor an" the 'ustomer *ith the

'ost of maintainin! relationship *ith them..

Internal differential analysis:-S-M "o the 'ost anlysis to fin" the sour'es of "ifferentiation an" to 'hoose the best

"ifferentiation strate!y.-S-M basi'ally follo* the 'ost lea"ership strate!y. fter

"eterminin! total 'ost they tae strate!ies to re"u'e the o$erall 'ost.

S5RA5&8I! 7RAM&:2R?S 72R -ALU& !6AI$ A$AL%SIS

Calue 'hain analysis re+uires a strate!i' frame*or or fo'us for or!aniin! internal an"

e6ternal information,for analyin! information, an" for summariin! fin"in!s an"

re'ommen"ations. Be'ause $alue 'hain analysis is still e$ol$in!, no uniform pra'ti'es

ha$e yet been establishe".

=o*e$er, borro*in! re'ent 'on'epts from strate!ists an" or!aniation e6perts, -S-M

follo* three useful strate!i' frame*ors for $alue 'hain analysis.These are(

Structure analsis of RSRM@

!ore competencies@ and Segmentation analsis.

Structure Analsis 2f Rsrm 5hrough 5he !ompetiti(e 7orces+

Bargaining power of buyers;

Bargaining power of suppliers ;

Threat of substitute products or services;

Threat of new entrants; and

ntensity of competition

+hreats of intense segment rivalry:

RSRM with its compititors like BSRM9?SRM9A?S98P69BSIL etc ha(e high high

fi'ed costs and e'it barriers are high9ha(e battles of promotional acti(ities.


23/62

The 'ompetitors are tryin! to e6ploit the potential 'ustomers of !ra"e" bar. They are

hi!hli!htin! that other 'onstru'tion materials lie stone 'hips, 'ements et'. are also

a$ailable to support the uses of !ra"e" bar. So, bar!ainin! po*er of the buyer is so hi!h.

+hreat of ne. %ntrants:

There are alrea"y 39 steel 'ompany in Ban!la"esh.mon! them P=P steel

in"ustry,-ahim Steel,n*ar #spat in Dhaa an" BS-M,-S-M,LS-M,LS,@P=,BS#/

are in %hitta!on! *hi'h are fully automate" rollin! in"ustry.There is SS-M in

%hitta!on! but its !reat maret 'o$era!e is in 5eni an" Sa$ar.There is another steel mill

in %hita!on! name" Saleh -erollin! Steel Mill that 'laims itself as rerollin! mill but is

not fully automate".There are ne* 'omers *aitin! to enter into the maret.

+hreat of substitute products or services

Day by "ay in our 'ountry use of Prefabri'ate" Buil"in! system are in'reasein! *here

use "ifferent types of steel !ir"er =Beam,#Beam ma"e by steel &ointin! by nut bolt

system.#t is mainly use in #n"ustrial Stru'ture.But no* usin! also for resi"ential

buil"in!.The main benefit for this system are J not time 'onsumin! lie as 'on'rete

stru'tureit is easy to maintain +uality J it has !reat earth+uae resistin! po*er.So this

system is a threat for -S-M as *ell as for steel in"ustry.But as the !ir"er is importe"

from forei!n maret so it is of less threatenin! as "ee$loper 'ompany mostly uses home

'ountry pro"u'ts as they follo* international stan"ar"s


24/62

7igure+ Porters 0 competiti(e forces

+hreat of gro.ing bargaining po.er of the buyer:

The pri'in! strate!y of -S-M is that they mae un"erstan" the 'ustomers that the pri'e

of !ra"e" bar is reasonable. Lno*le"!eable users are fully a*are about the uni+ueness of

the !ra"e". Stan"ar" test reports help in a'hie$in! the trust of the buyers an" thus re"u'e

the bar!ainin! po*er.#f any 'ustomer *ant the laboratory test report -S-M pro$i"e it.?r

sometimes -S-M !i$e the fa'ility to test the pro"u't free if 'ustomer *ants.

+hreat of gro.ing bargaining po.er of the supplier*

s -S-M has the o*n supplier name" Mo"ern steel Mills an"( -atanpur Ship

Breain! #n"ustry so their is no threat of the the bar!ainin! po*er of the supplier.

!2R& !2MP&5&$!I&S A$AL%SIS

1efinition of !ore !ompetencies

The main stren!ths or strate!i' a"$anta!es of a business. %ore 'ompeten'ies are the

'ombination of poole" no*le"!e an" te'hni'al 'apa'ities that allo* a business to be

'ompetiti$e in the maretpla'e. Theoreti'ally, a 'ore 'ompeten'y shoul" allo* a

Bargaining

power of

buer

Bargaining

power of

supplier

5hreats of

potential entrants

5hreats of

substitutes

Ri(alr

with the

competitor

s of RSRM


25/62

'ompany to e6pan" into ne* en" marets as *ell as pro$i"e a si!nifi'ant benefit to

'ustomers. #t shoul" also be har" for 'ompetitors to repli'ate.

Philip Lotler, in his boo Maretin! Man!ement ,sai" that,

A core competenc has three characteristics+

#*C It is a source of competiti(e ad(antage in that it makes a significant contribution

to percei(ed customer benefits.

#,C It has applications in awide (areit of markets

#C It is difficult for competitors to immitate.D

%ompetiti$e a"$anta!e a''rues to 'ompanies that possess "istin'ti$e

'apabilities.)hereas 'ore 'ompeten'ie' refers to areas of spe'ial te'hni'al an"

pro"u'tion e6pertise,"istin'ti$e 'apabilities "es'ribes e6'ellen'e in broa"er business

pro'esses.

business &ust startin! out *ill try to first i"entify an" then fo'us on its 'ore

'ompeten'ies, allo*in! it to establish a footprint *hile !ainin! a soli" reputation an"

bran" re'o!nition. Usin!, an" later le$era!in!, 'ore 'ompeten'ies usually pro$i"es the

best 'han'e for a 'ompany>s 'ontinue" !ro*th an" sur$i$al, as these fa'tors are *hat

"ifferentiate the 'ompany from 'ompetitors.

!ore competencies of RSRM

Ad(ance technolog or high technolog leadership+

-S-M uses both #n"ian an" Aapanese te'hnolo!ythat ensures highest quality of

production!

2wn Eualit control sstem+

-S-M has o*n +uality 'ontrol system .ThatGs *hy it 'an test an" monitor its proo"u't

+uality imme"iately an" it limits the time 'ost of pro"u'tion an" it is possible to "eli$er

the pro"u't at &ust in time.So , it nee"s no to test the pro"u't outsi"e or by any thir"

party .Thus it re"u'es the 'ost of testin!.


26/62

/niversal +esting Machine

-S-M ha$e 100 M. Ton 'apa'ity Uni$ersal Testin! Ma'hine that ensures yiel" stress ,

ultimate tensile stren!th , elon!ation , an" ban" test of the finishe" pro"u'ts

Optical %mission Spectrometer (PD0$1222)

#t has ?pti'al


27/62

$#ma'C ) *,; *,;

Standard of Production 4ualit+

-S-M maintain both the #S? stan"ar",BST# an" STM J19 *here BS-M only

maintain #S? stan"ar"s.

Aahan!ir lam, a professor of %hitta!on! Uni$ersity of


28/62

Plant facilitiesha$e 'ome to in'lu"e J

+hree production plants

O.n po.er plant

+.o .are houses*

Induction Melting !urnaceswith a'adle Refining

!urnaces3

a Continuous Casting plantand

Rolling Mills .ith the latest automated features

O"teel'ompanies re+uire hu!e an" uninterrupte" po*er supply.ny unfa$ourable 'han!e

in po*er relate" re!ulations may affe't the 'ompanies business.-S-M has o*n po*er

plant *hi'h ensures uninterrepte" po*er supply. But BS-M ha$e no po*er plant

@P= ha$e a po*er plant but the 'apa'ity an" flo* of ele'tri'ity is less than -S-M.

2ther au'iliariesin'lu"e J

well eEuipped Crane facilities3

aMainPo.er Substation3

4uality control center

Maintenance Shopsan"

!oreign +echnical e,pertise from 5ermany and India*

Bio facilitiesin'lu"e J

facilities of fresh .ater3

compressed air and

natural gas.

OThe 'ompany also re+uires @as for heatin! billets an" a''or"in!ly shorta!e of !as

supply *ill affe't the operation of the 'ompany. -S-M !as 'onne'tion is 'onne'te" *ith

main "istribution line of %hitta!on! None.So -S-M is en&oyin! uninterrupte" an"

suffi'ient !as supply.


29/62


30/62

Meaning of !ompetiti(e Strateg+

%ompetiti$e Strate!y means lon!term a'tion plan that is "e$ise" to help a 'ompany !ain

a 'ompetiti$e a"$anta!eo$er its ri$al. This type of strate!y is often use" in a"$ertisin!

'ampai!ns by someho* "is're"itin! the 'ompetition>s pro"u't or ser$i'e.

%ompetiti$e strate!ies are essential to 'ompanies 'ompetin! in marets that are hea$ily

saturate" *ith alternati$es for 'onsumers.

Assense of competiti(e strateg+

Pro"u'ers an" suppliers familiar *ith farmin! an" ran'hin! may no* that su''essful

$entures in the steel in"ustry ha$e typi'ally operate" in a 'ommo"itie", pri'e"ri$en

maret, *here all parties pro"u'e essentially the same pro"u't. Su'h 'on"itions imply

that the ultimate *inners are the most 'osteffi'ient pro"u'ers, meanin! that steel

manufa'tureres ha$e histori'ally relie" on strate!ies that fo'use" on lo*er 'osts.

)ith the a"$ent of pro"u't "ifferentiation an" "ire't maretin!, that reality has 'han!e",

an" no* there are both in"i$i"ual an" *holesale buyers are looin! for pro"u'ts *ith

$ery spe'ifi' 'hara'teristi's or spe'ial ser$i'es. These 'hara'teristi's often use strate!ies

that "onGt fo'us on 'osts an" $olumes e6'lusi$ely rather the pro"u't or ser$i'e may be of

premium +uality, be "ifferentiate" from other pro"u'ts an" ser$i'es a$ailable in the

maret.

Su''essful $entures perform a 'ombination of business a'ti$ities *ell, in'lu"in!

maretin!, pro"u'tion, "istribution, finan'e, 'ustomer ser$i'e, an"Hor other a'ti$ities

important to the enterprise.


31/62

1IM&$SI2$S 27 !2MP&5I5I-& S5RA5&8%+

The "imensions of 'ompetiti$e strate!y for 'ompetin! in the steel in"ustry "iffer in

$areity of *ays(

Specialization:

The "e!ree to *hi'h -S-M fo'uses its efforts in terms of its *i"th of its line# the

target customer segments# and the geographic mar$ets served!

-S-M has basi'ally four pro"u't line J

)power 0;;5M5

)power F0 grade

8rade )H;

8rade )/;

ltho!h other 'ompetitors lie BS-M has more pro"u't line but "urin! my sur$ey some

"e$eloper 'ompany lie, Naman Properties an" De$eloper 'ompany, Pra'hir Properties

/imite", llione, -5 buil"ers, Three Star properties, BT# "e$elopers et'.sai" that -S-M

shoul" not in'raese its pro"u't line rather it shoul" 'on'entrate on its pro"u't

+uality.Pro"u't line is not the ultimate thin!, the ultimate thin! is its +uality.

Push vs Pull:

The "e!ree to *hi'h a 'ompany sees to "e$elop bran" i"entifi'ation *ith the ultimate

'onsumer "ire'tly $s the support of "istribution 'hannels in sellin! its pro"u'ts.

-S-M basi'ally follo* Push strate!y to sell its pro"u'ts.

Channel selection:

The 'hoi'e of "istribution 'hannels ran!in! from 'ompany Jo*ne" 'hannels to

spe'ialty outlets to broa"line outlets.


32/62

-S-M has 03 "istribution 'enters,more than 90 sales representati$es,an" se$eral sales

"eposits at Dhaa,%hitta!on!,Sylhet,-a&shahi,Bo!ra an" Lhulna.

)hen sele'tin! "ealer or "istributor, Business turno(er9 8oodwill9 Area co(erage,

7inancial sol(enc, these fa'tors are bein! 'onsi"ere".

Product 6uality:

#t is the le$el of pro"u't +uality,in terms of ra* materials,spe'ifi'ations,a"heren'e to

toleren'es,features an" so on.

-S-M has the hi!hest +uality of pro"u'ts *ith hi!h enon!ation an" ben"ability that is

earth+uae resistant.

+echnological leadership:

The "e!ree to *hi'h it sees te'hnolo!i'al les"ership $erses follo*in! or imitation.

-S-M uses up!ra"e" Aapanese an" #n"ian te'hnolo!y for its pro"u'tion pro'ess

Cost position :

The e6tent to *hi'h it sees lo*'ost position in manufa'turin! an" "istribution

throu!h in$estment in 'ostminimiin! fa'ilities an" e+uipment.-S-M al*ays insist

on 'ost lea"ership strate!y.

Service:

The "e!ree to *hi'h it pro$i"es an'ialliary ser$i'es *ith its pro"u't line ,su'h as

loa"in! an" unloa"in! fa'ility,'re"it "ays an" 're"it limit fa'ility an" so forth.

Price policy:

The relati$e pri'e position of a 'ompany in the maret.Pri'e position *ill usually be

relate"to su'h other $aribles as 'ost position an" pro"u't +uality.

The pri'in! approa'h of -S-M is Calue Base" Pri'in!.

The pri'in! strate!y for ne* pro"u't is Maret Penetration.


33/62

The pri'e of the pro"u't of -S-M is set by Top Mana!ement of the

'ompany.

The in'rease of ra* materials pri'e affe't its profitability.So,to "etermine the

pri'e the fa'tor of Total %ost is bein! 'onsi"ere".

!2MP&5I5I-& S5RA5&8I&S 72LL2:&1 B% RSRM

2(erall !ost Leadership Strateg+

?$erall 'ost lea"ership re+uires firms to "e$elop poli'ies aime" at be'omin! an"

remainin! the lo*est'ost pro"u'er an"Hor "istributor in the in"ustry. %ompany

strate!ies aime" at 'ontrollin! 'osts in'lu"e 'onstru'tion of effi'ients'ale

fa'ilities, ti!ht 'ontrol of 'osts an" o$erhea", a$oi"an'e of mar!inal 'ustomer

a''ounts, minimiation of operatin! e6penses, re"u'tion of input 'osts, ti!ht

'ontrol of labor 'osts, an" lo*er "istribution 'osts. The lo*'ost lea"er !ains

'ompetiti$e a"$anta!e by !ettin! its 'osts of pro"u'tion or "istribution lo*er than

those of the other firms in its maret.

RSRM basicall follow the Cost 'eadership Strategyas its compititi(e strateg.

Reduction of supplier cost and input cost that results in production

economies of scale +

-S-M has o*n supplier of ra* materials

#nput is also 'olle'te" from o*n ship breain! in"ustry

s the supplier an" ra* materials are a$ailable for them so it re"u'es supplier 'ost an"

input 'ost an" thus pro"u'tion 'ost is re"u'e".

Logistical economies of scale as it has low transportation cost+


34/62

-S-M 'an "eli$er their o*n !oo"s to the "esire" points of their 'ustomers as their

re+uirements as(

o -S-M has own truc$an"

o %ood communication with Trailer &wner's Association(.

o #t has own deliverymana''ompany *ith the loa"e" $ehi'les from loa"in!

points to the "eli$ery points of the 'ustomers.

s -S-M has o*n $ehi'le an" "eli$ery man so it has lo* transportation 'ost,thus -S-M

a'hei$e" /o!isti'al


35/62

5hus RSRM is able to create a possiti(e image into the customers mind at a

low cost.

5hus RSRM achie(e promotional economies of scale.

2wn (endor for broadcast ad(ertising+

-S-M has o*n $en"ors throu!h *hi'h it shoot its pro"u'tion pro'ess for

a"$ertisement.

-S-M nee"s not to !o for any other a"$ertisin! a!en'y .ThatGs *hy a

hu!e amount of a"$ertisement 'ost is re"u'e".

So *e 'an say that -S-M has promotional e'onomies of s'ale that is its one of the 'ore

'ompeten'ies.

2wn Eualit control sstem that reduces production time and ensures 3ust in

deli(er and also ensures no cost of product testing+

-S-M has o*n +uality 'ontrol system .ThatGs *hy it 'an test an" monitor its proo"u't

+uality imme"iately an" it limits the time 'ost of pro"u'tion an" it is possible to "eli$er

the pro"u't at &ust in time.So , it nee"s no to test the pro"u't outsi"e or by any thir"

party .Thus it re"u'es the 'ost of testin!.

1I77&R&$5IA5I2$ S5RA5&8%

The se'on" strate!y, "ifferentiatin! the pro"u't or ser$i'e, re+uires a firm to 'reate

somethin! about its pro"u't or ser$i'e that is per'ei$e" as uni+ue throu!hout the

in"ustry. )hether the features are real or &ust in the min" of the 'ustomer, 'ustomers

must per'ei$e the pro"u't as ha$in! "esirable features not 'ommonly foun" in 'ompetin!

pro"u'ts.

Differentiation may be attaine" throu!h many features that mae the pro"u't or ser$i'e

appear uni+ue. Possible strate!ies for a'hie$in! "ifferentiation may in'lu"e(

*arranties

bran" ima!e

te'hnolo!y


36/62

features

ser$i'e

+ualityH$alue

"ealer net*or

#t is important to eep in min" that a $entureGs most effe'ti$e "ifferentiationthe one that

*ill brin! the $enture the most su''ess*ill liely 'ome from &ust one or t*o strate!ies.

Product differentiation of RSRM

20K more po*erful

=i!h elon!ation

=i!h stren!th 'ombine" *ith hi!h "u'tility

Better fati!ue resistant

Better resistan'e to hi!h temperature in 'ase of fire haar"s.

Stron! but easy to ben"

Better *el"ability *ithout loss of stren!th at *el"e" &oints.

Pro"u'e" from the best +uality billet

/en!th Q12 meters

''urate *ei!ht

%ost effe'ti$e

Perfe't "iameter

Uniform stren!th an" lon! lastin!

Product feature of RSRM and 8P6

@ra"eSupply%on"ition

Reil"Sress

4Hmm2

TensileStren!th

4Hmm2


37/62

BS888:

@r.80

80 989 12

STM

19M

@r.79920

920 :0 7"epen"in! on bar

RSRM

0;J/;grade

s rolle" 390 800

,,

RSRM /*0JH;

8rade

s rolle" 819 20 *H

8P6

/;;JH;

grade

s rolle" 819 20 */

RSRM

')

power0;;tmt

s rolle" 0/; H/; *G

8P6 5M50;;w

s rolle" 0;; 0F0 */

1ifferentiation at customer ser(ice+

7acilities pro(ided to the customer

Durin! my sur$ey at "ifferent steel 'ompany an" "e$eloper 'ompany # ha$e

learnt that almost all the steel 'ompanies pro$i"e" same types of fa'ility lie J /oa"in! an" unloa"in! fa'ility,

%re"it fa'ility,

payment per'enta!e fa'ility,

Pro"u't testin! fa'ility.

But the "ifferentiation is here that the steel 'ompanies pro$i"e these fa'ilities on

'ustomer basis.n" all the "e$eloper 'ompany sai" that they are happy *ith the ser$i'es

or fa'ilities pro$i"e" by -S-M than the other 'ompanies.The payment system of BS-M

is "iffi'ult an" 're"it fa'ility is not enou!h.

&asier terms and condition+


38/62

Many "e$eloper 'ompanies prefer -S-M be'ause of its easier terms

and condition!

They also 'laim that the terms an" 'on"itions of BS-M is difficult to

maintainan" it harrasing the company!

So the easier terms an" 'on"ition 'an be treate" as one of the 'ompititi$e a"$anta!e of

-S-M.

A(ailable production and 3ust in time deli(er+

#t is ne'essary to satisfy ones 'ustomer by fulfillin! fis or"er &ust in time.n" it is only

possible *hen their is J

smooth production system3 available production and

an active management system.

#f a 'ompany 'anGt satisfy its 'ustomers *ithin &ust in time "eli$ery then pro"u't or"er

may be 'an'elle" of or "e'line".

Durin! my sur$ey most of the 'lients of -S-M sai" that

-S-M has the commitmentontime and demand fulfillment capacity!

-S-Mproduce available product basedon customer re6uirement.

The deliveryof goods is e,ecuted .ithin the shortest possible timeon

re'ei$in! of *or or"er from 'ustomer.

0ll customers of RSRM agree that the product of RSRM is available.

8henever they need the product it reaches to their hand 9ust in time *here

other 'ompititors pro"u't lieSRM are not available and they have

distribution problem*

The Sales an" Maretin! "epartment pro'essespurchase order of 3maintains

liaison .ith and 6uic responds to the customers*


39/62

&(aluation of customers+

ny 'ompany *hether it is steel in"ustry or not shoul" listen to its 'ustomers.#f the

or!aniation sho* 'oura!e to its 'ustomers to listen them an" try to mana!e their

problens then the 'ustomers thin that they are properly treate" by this or!aniation.

Thus it is possible to !ain trust*orthiness an" the 'ustomer satisfa'tion.

-S-M al*ays pay hi!hest importan'e to its 'ustomers.

#t is $ery mu'h 'areful about its $aluable 'ustomers.5or that reason it has

;Customer


40/62

BSRM pro(ide only Bdays credit facilit*hi'h is not preferrable to its

buyers.

A?S an" 8P6 pro$i"e minimum ?2 days an" ma,imum B2 days 're"it

fa'ility an" ?SRM also no* follo* them.

But due to this huge gap of credit das A?S ha(e to face a large amount

of banloan*

So *e 'an say that -S-M ne$er 'ompromise *ith its +uality an" this maes it

'ompetiti$ely one step ahea".

Arrangement of seminers countrwide to make aware the customers about

the product Eualit

-S-M arran!es seminers 'ountry*i"e alon! *ith the engineers# corporate customers#

local people# masonsto a*are them about -S-M itself,itGs pro"u't an" pro"u't +uality

an" the affe't of earth+uae.

lthou!h all the 'ompanies arran!e seminers but the 'ompetiti$e strate!y that maes it

"ifferen'e from others is in its way of arrangements# attitudes#presentations# gift items

etc!

1ifferentiation at Branding

The bran" elements of BS-M 'ontain some important meanin!s. Bran" e+uity. elements

are those tra"emar "e$i'es that i"entify an" "ifferentiate the bran". Bran" elements play

a number of roles.

The lieability an" appeal of bran" elements may also play a 'riti'al role in a*areness

an" asso'iations lea"in! to bran".

There are some elements of bran" of BS-M @roup. These are !i$en belo*(

$ame+


41/62

Bran" name is an important element of the bran". -S-M has "istin'ti$e bran" name. The

%orporate bran" name of the !roup isRSRM. This name 'onsists of follo*in! best bran"

name features, su'h as(

Short an" simple.


42/62

The lo!o of -S-M is an important bran" element of the 'ompany. -S-M has a

"istin'ti$e an" attra'ti$e lo!o. The Iron ManD of the lo!o J Strength9 Safet9 an"

Sustainabilit.

n" the mission statement is Steel for the 4ation. This statement 'reates a sense into

the 'ustomer min" that it is the stron! steel that *ill 'reate a stron! future throu!h the

infrustru'tural "e$elopment of the 'ountry *itha stron! han".

Chapter!"

#ecommendations and

conclusions


43/62

Recommendations+

RSRM should de(elop the marketing mi'

-S-M shoul" set of 'ontrollable maretin! tools J pro"u't, pri'e, pla'e, promotion J

that -S-M blen"s to pro"u'e the response it *ants in the tar!et maret.

Recommendations about product

Durin! my sur$ey many "e$elopers say that -S-M shoul" not in'rease its pro"u't

line rather it shoul" pro"u'e +uality pro"u't

-S-M shoul" sho* test report to the 'lients "urin! ne!otiation.

#t shoul" "e$elop a -esear'h ; De$elopment "epartment for 'ontinuous

inno$ation an" up!ra"ation

Recommendations about pricing


44/62

-S-M shoul" re"u'e pri'e *hen 'ompititors re"u'e pri'e of their pro"u't *ithout

'ompromisin! its $alue.

The 're"it perio" shoul" in'rease more.

Recommendations about distribution of products

The "istribution outlets shoul" be in'rease"

-S-M shoul" pro$i"e both the loa"in! an" unloa"in! fa'ilty .

Recommendations about advertisement

Main! an attra'ti$e ,inno$ati$e,realisti',informati$e a"$ertisement for

Broa"'astin!

Shol" 'o$er important TC 'hannels,5M ra"ios

#n'rease number of billboar"s all o$er the 'ountry

5ull information at the *eb pa!e

Recommendations about sales promotion

@i$e more 'omissions an" !ifts to the "ealers

#n'rease "is'ount an" 're"it fa'ilities

4ot only !i$e in'enti$es to the "e'ision maer or pur'haser of the "e$eloper

'ompany but also to the en!ineers

Recommendations about public relation

-S-M shoul" 'reate "istin'ti$e bran" ima!e of its pro"u'ts thro!h publi' relation by

follo*in!(


45/62

ltho!h it has been arran!e" fe* seminers but it shoul" be 'ontinue in a re!ular

basis alon! *ith the en!ineers,ey persons of the "e$eloper 'omapny,lo'al people

or the lan"o*ners,labors.

/aun'h pro!rams or seminers to 'reate a*areness about earth+uae an"

Ban!la"esh buil"in! 'o"e.

Sponsor $arious pro!rams spe'ially "esi!ne" for youn! !eneration on si!nifi'ant

o''ations in e"u'ational institutions.

To utter the ne'essity of Stru'ture" Ban!la"esh a!ain an" a!ain

These pra'ti'es *ill in'rease the 'orporate ima!e of -S-M

Recommendations about personal selling

&ffecti(e and efficient sales force should be recruited

The sales !ro*th of -S-M is not satisfa'tory as 'ompare" to others.#f -S-M *ants to

in'rease sales !ro*th on 'ontinuous basis , they shoul" re'ruit the effe'ti$e an" effi'ient

sales for'e be'ause effe'ti$e sales people are able to 'reate an" maintain !oo"

relationship *ith "ifferent "e$elopers,retailers,an" en" users.Moreo$er 70K sales of the

steel maret o''ur on the basis of relationship.


46/62

of Ban!la"esh. The Maretin! ; Sales Department of BS-M shoul" eep up its

effe'ti$eness an" effi'ien'y.

Chapter!$

Appendi%


47/62

Questionnaire on Steel Industry of

Bangladesh

Questions:

1. )hat types of ma'hinery "o you useI

. utomate" B. Manual %. Both

2. =o* many pro"u'tion plants ha$e youI

.

3. 5rom *hi'h 'ountry "o you 'olle't ma'hineryI

8. Do you ha$e forei!n te'hni'al e6pertiseI

. Res B. 4o

#f yes please spe'ify,...OOOOOOOOOOOOO

9. 5rom *hi'h sour'e "o you re'ruit employeesI

.


48/62

OOOOOOOOOOOOOOOOOO

E. =o* many pro"u't lines "o you ha$eI

OOOOOO..

:. )hi'h one is your main pro"u'tI

. Deforme" Bar B. n!le %. %hannel D. )ire -o"


49/62

OOOOO..

22. )hat basi' 'ompetiti$e strate!y "o you follo*I

. %ost lea"ership B. Differentiation %. 5o'us

23. )hat is your rea'tion a!ainst your 'ompetitorGs a'tion of pri'e re"u'tionI

. Pri'e re"u'tion B. Dis'ount %. Promotion

28. =a$e you any spe'ifie" suppliersI

. Res B. 4o

#f yes please spe'ify,...OOOOOOOOOOOOOOOOOOOOOOOOO

29. )hat type of fa'ilities "o you e6pe't from your suppliersI

. #nstant Deli$ery B. Dis'ount %. %re"it 5a'ility D. 5ree

Transportation

2. )hat type of fa'ilities "o you !et from your suppliersI

#nstant Deli$ery Dis'ount %re"it fa'ility 5ree Transportation

27. )hat is your "ailyJmonthly pro"u'tion +uantityI

OOOOOOO

2E. )hat fa'tors is 'onsi"ere" for "eterminin! pri'eI

Total %ost Bran"in! Maret Position ?thers

2:. )hat is your pri'in! approa'hI

. %ost Base" Pri'in! B. Tar!et Profit Pri'in! %. Calue Base" Pri'in!

D. %ompetition Base" Pri'in!

30. )ho set pri'eI

. Top Mana!ement B. Maretin! Department %. ''ountin!

Department D. ll

31. )hat is the pri'e of "eforme" bar per ton from fa'tory in this *eeI

80 !ra"e ..

0 !ra"e ..

79 !ra"e .

32. )hat is your pri'in! strate!y for ne* pro"u'tH

. Maret Penetration B. Maret Simmin!

33. Does the in'rease of ra* materials pri'e affe't your profitabilityI


50/62

. Res B. 4o

38. Do you offer spe'ial "is'ount for 'orporate buyersI

. Res B. 4o

39. Do you ha$e online or"er pla'ement opportunityI

. Res B. 4o

3. Do your 'on"u't any type of maretin! resear'hI

. Res B. 4o

#f yes please spe'ify, ...OOOOOOOOOOOOOOOOO

37. )hat is your maret se!mentation basisI

. @eo!raphi' B. Demo!raphi' %. Beha$ioral

3E. )hat is the sta!e of your pro"u't "eforme" bar in P/%I

. #ntro"u'tion B. @ro*th %. Maturity D. De'line

3:. Do you ha$e your o*n "istributionHtransportation systemI

. Res B. 4o

80. =o* many "istribution 'entres "o you ha$eI

OOOOOO..

81. =o* many sales representati$es "o you ha$eI

OOOOOO..

82. Do you "ire'tly sell to the 'ustomersI

. Res B. 4o

83. 5rom the follo*in! *hat is your "istribution 'hannelI

. %ompany 'ustomer

B. %ompany retailer 'ustomer

%. %ompany "istributorretailer 'ustomer

88. =o* "o you "etermine 'hannel memberI

OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

89. )hat types of in'enti$es "o offer to your "istributors or "ealersI

. %ommission b. llo*an'e '. Spe'ial Pri'e ". %re"it

5a'ility


51/62


52/62

Questionnaire for CorporateCustomers

Demografic Information:

$ame of the institution +

Location of the institution +

$ame of the respondent +

1esignation of the respondent+

!ontact no+

1ate+

Signature+

Questions:

1. )hat is your fa$orite bran" for 'onstru'tionIa BS-M b LS-M ' -S-M

" LS e @P= f BS#/

2. )hat "o you lie about your fa$orite bran" as 'ompare" to othersIa Pro"u't +uality b uspi'ious pri'in!

' Distribution fa'ility " Bran" ima!e

3. )hat types of problem "i" you fa'e at first pur'ahse" bran"I

a Pro"u't +ulity b 5a$ourable pri'in!' Distribution problem " Bran" ima!e

8. )hat !ra"e" "eforme" are you usin! for 'onstru'tionI

a @ra"e 80 b @ra"e0 ' @r"ae900*9. )hat is the re+uirement for your 'onstru'tionI

a @ra"e 80 b @ra"e 0 ' @ra"e900*

. #s there any "efe'ts of BS-M pro"u'tsIa Res b 4o ' DonGt no*

#f yes , *hat is the "efe'tI ..............................................................

7. #s there any "efe'ts of LS-M pro"u'tsI

a Res b 4o ' DonGt no*


53/62

#f yes , *hat is the "efe'tI ..................................................................

E. #s there any "efe'ts of -S-M pro"u'tsI


#f yes , *hat is the "efe'tI ......................................................................:. #s there any "efe'ts of LS pro"u'tsI

a Res b 4o ' DonGt no* #f yes , *hat is the "efe'tI ......................................................................

10. #s there any "efe'ts of @P= pro"u'tsI


#f yes , *hat is the "efe'tI ......................................................................11. #s there any "efe'ts of BS#/ pro"u'tsI


#f yes , *hat is the "efe'tI ....................................................................12. )hat pro"u't "o you thin has less "efe'tI

a BS-M b LS-M ' -S-M

" LS e @P= f BS#/ )hyI ...............................................................................................

13. )oul" you 'onsi"er this pro"u't for your ne6t 'onstru'tionI

a Res b 4o ' Maybe #f no , *hyI .........................................................................................

18. So, *hi'h pro"u't *ill you useI ................................................................

)hyI ...............................................................

19. =o* many tons "o you use per monthIa /ess

than 10

b 1020

tons

' 2030 tons " 3080 tons e bo$e 80

tons

1. Do you thin your preferre" pro"u'ts are rea"ily a$ailable *hen you *ant to buythemI


17. #f no,then *hat *ill be the option for youIa )ait for ne6t "eli$ery b Use another pro"u't

1E. #f use another pro"u't then *hat is your 'hoi'eI

......................................................................................................................1:. )hat "o you thin about the performan'e of your preferre" pro"u'tsI

a


54/62


55/62

a %es b $o

BSRM

?SRM

RSRM

A?S

8P6

BSIL

33. )hat types of promotion most influen'e youI

a "$ertisin!

b Salespromotion

' Publi'relation

" Personalsellin!

e publi'ity

38. =o* +ui'ly the seller respon"s to your +ueryI

a -er prompt b 4uick ' Modest " Slow

BSRM

?SRM

RSRM

A?S

8P6BSIL

39. )hi'h 'ompany 'ontributes to the so'ial responsibility mostI

a BS-M b LS-M ' -S-M

" LS e @P= f BS#/

3. Do you thin that 'orporate so'ial responsibility helps the 'ompany to 'reate apositi$e bran" ima!eI

a Res b 4o ' Maybe

#f yes, *hyI .....................................................

37. Does the 'orporate so'ial responsility of -S-M influe'e youIa Res b 4o ' Sometimes

3E. =o* "o you e$aluate itI.......................................................................................................................

3:. )hi'h 'ompany 'omes to the min" first *hen you thin of pur'hasin! steelI

a BS-M b LS-M ' -S-M" LS e @P= f BS#/

80. Please ran your preferen'e for steel 'ompanies

1. 1st

2.

3. 2n" 4.

5. 3r" 6.

7. 8th 8. 9. 9

th 10.

11. th 12.

13.

81. ?ther than the pro"u't itself ,*hi'h of the follo*in! *oul" most influen'e you

*hen "e'i"in! to buy steela #nternetH*ebsite b )or" of mouth ' "$ertisin!


56/62

" #n"ustrial

publi'ations

e Tra"e sho*sHe$ents f Sales representati$es

82. Please , rate -S-M for the follo*in! attributes-er poor Poor 7air 8ood &'cellent

4ualit

8ood (alue

Usefulness

5rusting

brand

After sales

ser(ice

83. #n the past *ee , ho* many times you ha$e seen promotional a'ti$ities of the steelpro"u'tsI

BSRM times?SRM timesRSRM timesA?S times

8P6 timesBSIL times

88. To maintain the +uality *hat type of stan"ar" or te'hnolo!y a steel 'ompany shoul"

follo*I Mention your opinion ....................................................................................................

89. Sometomes the steel 'ompanies en'oura!e to $isit the 'ompany to see the

pro"u'tion pro'ess an" also allo* the pro"u't testin!. =o* you appre'iate itI ............................................................................................................

8. fter testin! if you fin" the best +uality of a 'ompany than your preferre"

'ompany ,then *ill you shift to that 'ompanyIa Res b 4o ' May be

#f no,*hy ............................................................................87. Does the 'ompany re'all you after selllin! the pro"u'tI

a Sometimes b 4e$er

8E. )hat in" of a""itional ser$i'es or fa'ilities you *ant more from a steel 'ompoanyI

.......................................................................................................

8:. )hat type of payment mo"e you lie most Ia Payment *ithin 're"it perio" b Payment after 're"it perio"

)hyI ..........................................................

90. )hat type of 're"it fa'ility you *ant more an" *hyI...................................................................................................

91. =o* *oul" you rate the ser$i'e of steel 'ompaniesI

-er poor Poor 7air 8ood &'cellentBSRM

?SRM

RSRM

A?S

8P6

BSIL


57/62

pur'hasin! the pro"u'tI

a Fuality b Pri'e ' fter sales ser$i'e

" Bran" ima!e e Trust f ?thers ........................93. )hat is the per'enta!e of your mental satisfa'tionI

..............................................

+"0& O/


58/62

Photo 8alar of RSRM


59/62

&ibliography

Primar data+

Inter(iew with>

Niaul =o+ue,ssistant Mana!er sales,BS-M

Mr.M". Mon&ur lam,Maretin!


60/62


61/62


62/62

Uni$ersity of %hitta!on!

Submitted b+

Mohsina hter

Final Value Analysis

Documents

Transcript of Final Value Analysis