Overview on the Capital of SEVEN STAR Garments (PVT) Ltd INTRODUCTION In July 01, 1994 our SEVEN STAR Garments (PVT) Ltd. started the production. In that time our total capital was only 50 cores. But now our working capital is 400 cores taka. During 14 years our capital increases 8 times. Our decent infrastructure, Hi-Tec technology, sound management performance and certain 3rd parties bring our profitability higher and make our market position very competitive in global market. Our vision is in 2017 we will become a market leader in Bangladesh perspective. If we look lack in our last 5 year of the company, we will find out that our productivity was not increase proportionality. That’s why our market share/position increases 2%, i.e., 10%-12%.
70 60 50 Profit 2.5 40
Defict Decreaase -0.2375% -0.125%
Defecit -0.50%
Deficit -0.625%
Year(JulyJuly) Base Year(20042005)
30 20 10 0 Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
T.R Core 40 50 55 64 70
T.C Core 37.5 47 51.8 60.5 66.25
Profit Core 2.5 3.0 3.20 3.5 3.75
Deficit Core -----0.125 -0.2375 -0.50 -0.625
If we see the graph, it shows that our total revenue increases but our profit does not increase proportionately. That’s why in 2008 May 4 cores TK to overcome employee’s unusual movement that’s why we expand our swing table, but it works a little. Today we all the top level manager passes a quality time to find out the actual problem and make a certain decision among the alternatives. We know each and every situation/alternatives passes into 3 situations
Certainty risk Uncertainty Fig: The continuum of decision-making condition Certainty
risk
Uncertainty
High
Low MANAGERIAL CONTROL
In making decision, all managers must weight alternatives what is problem is today. In all depends in all over creative decision making. Problem Identification: 1) Profit ratio decrease 2) Low productivity 3) Delay shipment 4) Vulnerable political satiation Develop Alternative Solution: 1) production increase along with buyer 2) Increase productivity 3) Investment on developing plant, purchasing production tools etc 4) Searching knew foreign market 5) Entering local market Evaluation alternative solution and make a choice: If we SWOT (strength, weakness, opportunity and Threats) analysis all of the alternatives, we found that every alternative has all of four factors. But if we think our problem and solution, we found only by increasing production we can solution all of that problems. That’s why we have to conclude a group decision with some course of action from a few short run and long run activity. We think it is not a very difficult task for implementing for our companies top level management to increase productivity. If we increase our productivity than we can bring significant change in our organization. Now our different managers represent their action of problem and describe planning to implement their solution. R&D In general, R&D activities are conducted by specialized units or centers belonging to our company, In the context of commerce, "research and development" normally refers to futureoriented, longer-term activities in science or technology, using similar techniques to scientific research without predetermined outcomes and with broad forecasts of commercial yield.
Research and development is nowadays of great importance in business as the level of competition, production processes and methods are rapidly increasing. It is of special importance in the field of marketing where our companies keep an eagle eye on competitors and customers in order to keep pace with modern trends and analyze the needs, demands and desires of their customers. Research and development (R&D) is a process intended to create new or improved technology that can provide a competitive advantage at the business, industry, or national level. While the rewards can be very high, the process of technological innovation (of which R&D is the first phase) is complex and risky. The majority of R&D projects fail to provide the expected financial results, and the successful projects (25 to 50 percent) must also pay for the projects that are unsuccessful or terminated early by management. In addition, the originator of R&D cannot appropriate all the benefits of its innovations and must share them with customers, the public and even competitors. For these reasons, a company's R&D efforts must be carefully organized, controlled, evaluated, and managed. New product design and development is more often than not a crucial factor in the survival of a company. In an industry that is fast changing, firms must continually revise their design and range of products. This is necessary due to continuous technology change and development as well as other competitors and the changing preference of customers. A system driven by marketing is one that puts the customer needs first, and only produces goods that are known to sell. Market research is carried out, which establishes what is needed. If the development is technology driven then it is a matter of selling what it is possible to make. The product range is developed so that production processes are as efficient as possible and the products are technically superior, hence possessing a natural advantage in the market place. Unfortunately, research and development are very difficult to manage, since the defining feature of research is that the researchers do not know in advance exactly how to accomplish the desired result. On a technical level, high tech organizations explore ways to re-purpose and repackage advanced technologies as a way of amortizing the high overhead. We often reuse advanced manufacturing processes, expensive safety certifications, specialized embedded software, computer-aided design software, electronic designs and mechanical subsystems. Working Process of R & D The objective of academic and institutional R & D is to obtain new knowledge, which may or may not be applied to practical uses. In contrast, the objective of industrial R & D is to obtain new knowledge, applicable to the company's business needs, which eventually will result in new or improved products, processes, systems, or services that can increase the company's sales and profits. We work in our R & D department in three types of R & D: ďƒ˜ Basic research, ďƒ˜ Applied research ďƒ˜ Development.
Basic research has as its objectives a fuller knowledge or understanding of the subject under study, rather than a practical application. As applied to the industrial sector, basic research is defined as research that advances scientific knowledge but does not have specific commercial objectives, although such investigation may be in the fields of present or potential interest to the company. Applied research is directed towards gaining knowledge or understanding necessary for determining the means by which a recognized and specific need may be met. In industry, applied research includes investigations directed to the discovery of new knowledge having specific commercial objectives with respect to products, processes, or services. Development is the systematic utilization of the knowledge or understanding gained from research toward the production of useful materials, devices, systems, or methods, including design and development of prototypes and processes. At this point, it is important to differentiate development from engineering, which can be defined as utilization of state-of-the-art knowledge for the design and production of marketable goods and services. In other words, research creates knowledge and development designs, and builds prototypes and proves their feasibility. Engineering then converts these prototypes into products or services that can be offered to the marketplace or into processes that can be used to produce commercial products and services. R & D and Technology Acquisition In many cases, technology required for industrial purposes is available in the marketplace, usually for a price. Before embarking on the lengthy and risky process of performing its own R & D, our company should perform a "make or buy" analysis and decide whether or not the new R & D project is strategically and economically justified. The following influencing factors should be considered: proprietariness, timing, risk, and cost. PROPRIETARINESS If a technology can be safeguarded as proprietary—and protected by patents, trade secrets, and nondisclosure agreements, etc.—the technology becomes exclusive property of the company and its value is much higher. In this case, the secret of commercial success is staying ahead of competition by developing continuously improved software packages, supported by a strong marketing effort. TIMING If the market growth rate is low or moderate, in-house or contracted R & D may be the best means to obtain the technology. On the other hand, if the market is growing very fast and competitors are rushing in, the "window of opportunity" may close before the technology has been developed by the new entrant. In this case, it is better to acquire the technology and related know-how, in order to enter the market before it is too late. RISK Inherently, technology development is always riskier than technology acquisition because the technical success of R & D cannot be guaranteed. There is always the risk that the planned
performance specifications will not be met, that the time to project completion will be stretched out, and that the R & D and manufacturing costs will be higher than forecasted. On the other hand, acquiring technology entails a much lower risk, since the product, process, or service can be seen and tested before the contract is signed. Regardless of whether the technology is acquired or developed, there is always the risk that it will soon become obsolete and be displaced by a superior technology. This risk cannot be entirely removed, but it can be considerably reduced by careful technology forecasting and planning. If market growth is slow, and no winner has emerged among the various competing technologies, it may be wiser to monitor these technologies through "technology gatekeepers" and be ready to jump in as the winner emerges. COST For a successful product line with relatively long life, acquisition of technology is more costly, but less risky, than technology development. Normally, royalties are paid in the form of a relatively low initial payment as "earnest money," and as periodic payments tied to sales. These payments continue throughout the period of validity of the license agreement. Since these royalties may amount to 2 to 5 percent of sales, this creates an undue burden of continuing higher cost to the licensee, everything else being equal. R & D Project Selection, Management, and Termination Industrial R & D is generally performed according to projects with specific technical and business goals, assigned personnel, and time and money budgets. Therefore, project selection and evaluation is one of the more critical and difficult subjects of R & D management. Of equal importance, although less emphasized in practice, is the subject of project termination, particularly in the case of unsuccessful or marginal projects. SELECTION OF R & D PROJECTS Normally, a company or a laboratory will have requests for a higher number of projects than can be effectively implemented. Therefore, R & D managers are faced with the problem of allocating scarce resources of personnel, equipment, laboratory space, and funds to a broad spectrum of competing projects. Since the decision to start on an R & D project is both a technical and a business decision, R & D managers should select projects on the basis of the following objectives, in order of importance:
Maximize the long-term return on investment; Make optimum use of the available human and physical resources; Maintain a balanced R & D portfolio and control risk; Foster a favorable climate for creativity and innovation.
Project selection is usually done once a year, by listing all ongoing projects and the proposals for new projects, evaluating and comparing all these projects according to quantitative and qualitative criteria, and prioritizing the projects in "totem pole" order. The funds requested by all the projects are compared with the laboratory budget for the following year and the project list is cut off at the budgeted amount. Projects above the line are funded, those below the line delayed to the following year or tabled indefinitely. Some experienced R & D managers do not allocate all the budgeted funds, but keep a small percentage on reserve to take care of new
projects that may be proposed during the year, after the laboratory official budget has been approved. EVALUATION OF R & D PROJECTS Since R & D projects are subject to the risk of failure, the expected value of a project can be evaluated according to the following statistical formula: EV=Pﾃ用tﾃ用cﾃ用f Where P is the payoff if the project is successful; that is, the stream of net income accruing to the company over the life of the new product (or process, or service) resulting from the project. The payoff P is then multiplied by the probability of success, which is the product of three separate probabilities: 1. pt is the probability of technical success, i.e., that the new product or process will meet the technical and functional specifications 2. pc is the probability of commercial success, i.e., that the new product will be accepted by the marketplace and will achieve the forecasted market share 3. pf is the probability of financial success, i.e., that the new product will achieve the forecasted financial goals, in terms of profits, return on investment, and cash flow. Consequently, project evaluation must be performed along two separate dimensions: technical evaluation, to establish the probability of technical success; and business evaluation, to establish the payoff and the probabilities of commercial and financial success. Once the expected value of a project has been determined, it should be divided by the forecasted cost C of the project, in order to obtain a benefit/cost ratio R of the form R EV/C. Obviously the higher this ratio, the more desirable the project. For more advanced and longer term projects, leading to major (rather than incremental) innovation, it may be difficult to establish reliable values of P, C, pt, pc, and pf. In this case, a relative comparison of projects is made based on their respective technical quality and potential business value. Technical quality is evaluated by analyzing and rating the clarity of the project goals; the extent of the technical, institutional, and market penetration obstacles that must be over-come; the adequacy of the skills and facilities available in the laboratory for carrying out the work; and how easily can the project results be transferred to an operation. Potential business value of a project is defined in terms of the market share of an existing market that can be captured by the new product; or by the size of a new market that can be developed by the new product; or by the value of new technology that can be sold by the company or transferred to its customers. After the first tentative list of projects has been established in order of priority, it is "matched" with the existing laboratory human and physical resources to make sure that these resources are well utilized. In fact, creative human resources are the laboratory's most valuable asset, and these should not be wasted by asking researchers to do work outside their disciplines and interests. Also, it is difficult to change in a short time the "mix" of available disciplines and equipment, and to hire and fire researchers. Thus, a shift towards new disciplines should be done gradually, avoiding the underutilization or overloading of the existing resources.
Once the tentative list of prospects has been modified according to the above, the entire project portfolio of the R & D laboratory should be balanced, in order to control risk, according to three types of probabilities listed above. Technical risk is controlled in two ways:1) by having a spectrum of projects ranging from low to medium-high technical risk; 2) by avoiding "bunching" too many projects in the same technology, particularly if the technology could be replaced by a superior technology during the expected lifetime of the new product. Commercial risk can be controlled by not having "too many eggs in one basket," that is, by targeting different market segments (government, capital equipment, consumer, industrial, international, etc.) and attacking different competitors, since directly targeting a major competitor may trigger a dangerous counter offensive and a price war. Financial risk is controlled by having a majority of small- and medium-size projects (in terms of R & D expense), a few large projects, and no projects that, in case of failure, could bankrupt the company. Financial risk, in terms of cash flow, is also controlled by having a spectrum (in time-to-payoff) of more short- and medium-term projects than long-term projects. This type of spectrum is also psychologically important to maintain the credibility of the R & D laboratory in the face of upper-level executives who keep asking "What have you done for me lately?" By definition, R & D is a risky activity, and there are no "zero risk" R & D projects, since these would then be engineering projects. While the majority of the projects in an R & D portfolio should be categorized as low-risk, some medium-risk projects are justified, and even a few high-risk projects, provided their expected value is high. Finally, project evaluation and selection should be made objectively, in order to develop and maintain a favourable climate for creativity and innovation. Researchers will be naturally disappointed when their projects are not approved. Some may even suspect that other projects were preferred for subjective reasons, such as the "halo" effect (the past track record and prestige of other, more senior, researchers), the reluctance of management to terminate less deserving projects, and especially political influences to select "pet" projects of executives. If there is a feeling that project selection is not done objectively, many researchers, particularly the junior ones, will lose their enthusiasm and renounce proposing new projects of a high potential value for the company. Eventually, if this situation persists, the laboratory will lose its creativity and concentrate on routine low-risk (but also low-payoff) or "political" projects, and it will have difficulty in keeping and attracting the best researchers. Therefore, it is desirable that the project evaluation and selection criteria be properly explained and that all researchers be asked to participate in the evaluation process. Also, the finalized project portfolio should be presented to, and discussed with, all the researchers. MANAGEMENT OF R & D PROJECTS The management of R & D projects follows basically the principles and methods of project management. There is, however, one significant caveat in relation to normal engineering projects: R & D projects are risky, and it is difficult to develop an accurate budget, in terms of technical milestones, costs, and time to completion of the various tasks. Therefore, R & D budgets should be considered initially as tentative, and should be gradually refined as more information becomes available as a result of preliminary work and the learning process. Historically, many R & D projects have exceeded, sometimes with disastrous consequences, the forecasted and budgeted times to completion and funds to be expended. In the case of R
& D, measuring technical progress and completion of milestones is generally more important than measuring expenditures over time. TERMINATION OF R & D PROJECTS Termination of projects is a difficult subject because of the political repercussions on the laboratory. Theoretically, a project should be discontinued for one of the following three reasons: There is a change in the environment—for instance, new government regulations, new competitive offerings, or price declines—that make the new product less attractive to the company; Unforeseen technical obstacles are encountered and the laboratory does not have the resources to overcome them; or The project falls hopelessly behind schedule and corrective actions are not forthcoming. Due to organizational inertia, and the fear of antagonizing senior researchers or executives with pet projects, there is often the tendency to let a project continue, hoping for a miraculous breakthrough that seldom happens. In theory, an optimal number of projects should be initiated and this number should be gradually reduced over time to make room for more deserving projects. Also, the monthly cost of a project is much lower in the early stages than in the later stages, when more personnel and equipment have been committed. Thus, from a financial risk management viewpoint, it is better to waste money on several promising young projects than on a few maturing "dogs" with low payoff and high expense. In practice, in many laboratories it is difficult to start a new project because all the resources have already been committed and just as difficult to terminate a project, for the reasons given above. Thus, an able and astute R&D manager should continuously evaluate his/her project portfolio in relation to changes in company strategy, should continuously and objectively monitor the progress of each R&D project, and should not hesitate to terminate projects that have lost their value to the company in terms of payoff and probability of success. MARKETING DEPARTMENT Marketing department is a vital department for a garments factory. Most of the garments of the Bangladesh have no separate department for the marketing. In this case merchandising department do as the marketing department. But in our factory has separate marketing department and I am the marketing manager there. Our marketing department providing vital information to the merchandising department, which is very much related to increase productivity to the factory. Conduct a Market Analysis Though the terms "marketing" and "marketing analysis" can both be described as games of information, but are not confused. Marketing encompasses all of the activities that go into promoting a product or service. A marketing analysis is the actual assessment of the target population, competition and needs for marketing that product or service.
The marketing analysis process can be broken down into six steps: 1. 2. 3. 4. 5. 6.
Defining the problem Analysis of the situation Obtaining data that is specific to the problem Analysis and interpreting the data Fostering ideas and problem solving Designing a plan
So, why should we embark on the market analysis process? The primary reasons are: • • •
To determine if there is a market for your products or services To establish the need for developing a marketing plan To ascertain market information that will assist in the sale of your product or service
Defining the Problem Our department tries to find out the problems. Because the defining the problem is crucial to conducting a successful marketing analysis. This may require a great deal of time but it is well worth the time and energy expended. Defining the objectives is tantamount to a successful marketing campaign. Many individuals waste valuable time performing good research on the wrong problem. The following questions will assist you in defining the problem:
Are we trying to market our entire product or service line? What specific marketing strategies have we utilized in the past two years? How has each strategy affected sales? What strategies are we currently using? How do our competitors market their product? Do we thank our referral source? Why would someone choose our product? What differentiates our product from our competitors' products? Why do people choose our competitors' products? Do we need to enhance our current product? Who are our customers? Are they from a specific region? How do we attract new customers? How do we increase sales from current customers?
Analysis Of The Situation We analyze the situation is an informal survey of what information is available in the problem area. The analysis helps us to define the problem and ascertain the need for additional information. This process entails informal talks with informed people. When the marketing department is unfamiliar with the situation, the analysis step is of primary
importance. It is important to understand the problem area - including the nature of the target market, competition, the marketing mix and the external environment. Without this knowledge, costly mistakes may result. An example of this problem would be a retailer who wants to survey his customers. A research firm is hired to do in-store interviews. However, as an example, the contracted firm is not aware that many of the stores are in the process of being renovated. As a result, the information collected reveals the customer's focus on the appearance, noise level and difficulty finding items due to construction. The information would be of no value. Primary and Secondary Market Research If we don't have all the answers to the questions listed in the Problem Definition section, we find the answers by either conducting primary research or accessing secondary research. Primary research is research that is proactively created for a specific purpose. Primary research may include focus groups, qualitative surveys and phone interviews. This is information we collect our self. In contrast, secondary research is research that has already been conducted for other purposes. From it valuable information can be gleaned. Secondary research can be found in libraries, online, through periodicals, books, etc. The easiest and most efficient way of accessing this type of data is on the Internet. Library information can also be found on the Internet. The Internet is an excellent tool to conduct a competitive analysis. Data Analysis and Interpretation Data analysis and interpretation is critical in analyzing the market. It is impossible to collect data on every buyer; therefore samples are necessary. A sample buyer is a part of the relevant buyer. How well the sample reflects the relevant buyer dictates its validity. Results from a sample that is not representative will negatively impact our marketing. In addition to sampling and validity issues, marketing department must make sure the data supports the conclusions drawn. This is the interpretation step. Despite use of the correct statistical tool and accurate calculations, the interpretation would be wrong. Marketing Plan This six-step process of market analysis is critical in designing a marketing plan that is tailored to us specific product. The process is extremely helpful in disclosing a significant but previously unrecognized problem. Our marketing plan shows the specifics of how we will market or attempt to sell our product. To reiterate the purpose of this discussion, the marketing plan is to provide us with guidance in analyzing our market. Various resources and software packages are available to enhance our marketing efforts. Software packages are numerous and include: ďƒ˜ Business Plan Pro, Palo Alto Software ďƒ˜ Small Business Advantage, Encore Software ďƒ˜ Jay Conrad Levinson's Guerilla Marketing, Houghton Mifflin Interactive Market Analysis
We do analysis the goal market to determine the attractiveness of a market and to understand its evolving opportunities and threats as they relate to the strengths and weaknesses of the firm. We do the following dimensions of a market analysis:
Market size (current and future) Market growth rate Market profitability Industry cost structure Distribution channels Market trends Key success factors
Market Size The size of the market can be evaluated based on present sales and on potential sales if the use of the product were expanded. The following are some information sources for determining market size:
government data trade associations financial data from major players customer surveys
Market Growth Rate A simple means of forecasting the market growth rate is to extrapolate historical data into the future. While this method may provide a first-order estimate, it does not predict important turning points. A better method is to study growth drivers such as demographic information and sales growth in complementary products. Such drivers serve as leading indicators that are more accurate than simply extrapolating historical data. Important inflection points in the market growth rate sometimes can be predicted by constructing a product diffusion curve. The shape of the curve can be estimated by studying the characteristics of the adoption rate of a similar product in the past. Ultimately, the maturity and decline stages of the product life cycle will be reached. Some leading indicators of the decline phase include price pressure caused by competition, a decrease in brand loyalty, and the emergence of substitute products, market saturation, and the lack of growth drivers. Distribution Channels The following aspects of the distribution system we use in a market analysis: Existing distribution channels - can be described by how direct they are to the customer. Trends and emerging channels - new channels can offer the opportunity to develop a competitive advantage. Channel power structure - for example, in the case of a product having little brand equity, retailers have negotiating power over manufacturers and can capture more margins.
Key Success Factors The key success factors are those elements that are necessary in order for our firm to achieve its marketing objectives. A few examples of such factors include:
Access to essential unique resources Ability to achieve economies of scale Access to distribution channels Technological progress
It is important to consider that key success factors may change over time, especially as the product progresses through its life cycle. PEST market analysis tool For understanding the marketing department uses the PEST analysis. Because the PEST analysis is a useful tool for understanding market growth or decline, and as such the position, potential and direction for a business. A PEST analysis is a business measurement tool. PEST is an acronym for Political, Economic, Social and Technological factors, which are used to assess the market for a business or organizational unit. The PEST analysis headings are a framework for reviewing a situation, and can also, like SWOT analysis, and Porter's Five Forces model, be used to review a strategy or position, direction of a company, a marketing proposition, or idea. Completing a PEST analysis is very simple, and is a good subject for workshop sessions. PEST analysis also works well in brainstorming meetings. Use PEST analysis for business and strategic planning, marketing planning, business and product development and research reports. We also use PEST analysis exercises for team building games. PEST analysis is similar to SWOT analysis - it's simple, quick, and uses four key perspectives. As PEST factors are essentially external, completing a PEST analysis is helpful prior to completing a SWOT analysis.
(Insert subject for PEST analysis - market, business, proposition, etc.)
Political • • • • • • • • • •
ecological/environmental issues current legislation home market future legislation European/international legislation regulatory bodies and processes government policies government term and change trading policies funding, grants and initiatives home market lobbying/pressure groups
Economic • • • • • • • • • • •
home economy situation home economy trends overseas economies and trends general taxation issues taxation specific to product/services seasonality/weather issues market and trade cycles specific industry factors market routes and distribution trends customer/end-user drivers interest and exchange rates
•
international pressure groups •
•
international trade/monetary issues
wars and conflict
Technological
Social • • • • • • • • • • • •
lifestyle trends demographics consumer attitudes and opinions media views law changes affecting social factors brand, company, technology image consumer buying patterns fashion and role models major events and influences buying access and trends ethnic/religious factors advertising and publicity
•
ethical issues
• • • • • • • • • • • • •
competing technology development research funding associated/dependent technologies replacement technology/solutions maturity of technology manufacturing maturity and capacity information and communications consumer buying mechanisms/technology technology legislation innovation potential technology access, licensing, patents intellectual property issues
•
global communications
We define a market by what is addressing it, be it a product, company, brand, business unit, proposition, idea, etc, so we are clear about how we define the market being analyzed, particularly if we use PEST analysis in workshops, team exercises or as a delegated task. The PEST subject is a clear definition of the market being addressed, which might be from any of the following standpoints:
a company looking at its market a product looking at its market a brand in relation to its market a local business unit A strategic option, such as entering a new market or launching a new product a potential acquisition a potential partnership an investment opportunity
We sure to describe the subject for the PEST analysis clearly so that a person contributes to the analysis, and those seeing the finished PEST analysis, properly understand the purpose of the PEST assessment and implications. SKILL INVENTORY On this very basic list of skills, check all the ones you’ve used at any point in your life (no need to be expert), and those you could use if asked.
Then complete the steps at the end of the list. They will help you choose which skills to emphasize on your resume & look for in job descriptions Purpose: The purpose of this skills inventory is to help you to be able to come up with different skills that you may be having a hard time thinking of yourself. How to use the Skills Inventory: The following is a sample list of skills found in a cross section of careers. Circle every skill that applies to you. Jot down examples of situations in your working life that demonstrate this skill. administering programs
planning agendas/meetings
updating files
advising people
planning organizational needs
setting up demonstrations
analyzing data
predicting futures
sketching charts or diagrams
assembling apparatus
rehabilitating people
writing reports
auditing financial reports
organizing tasks
writing for publication
budgeting expenses
prioritizing work
expressing feelings
calculating numerical data
creating new ideas
checking for accuracy
finding information
meeting people
classifying records
handling complaints
evaluating programs
coaching individuals
handling detail work
editing work
collecting money
imagining new solutions
tolerating interruptions
compiling statistics
interpreting languages
confronting other people inventing new ideas
dispensing information
constructing buildings
proposing ideas
adapting new procedures
coping with deadlines
investigating problems
negotiating/arbitrating conflicts
promoting events
locating missing information
speaking to the public
raising funds
dramatizing ideas
writing letters/papers/proposals
questioning others
estimating physical space
reading volumes of material
being thorough
organizing files
remembering information
coordinating schedules/times
managing people
interviewing prospective employees
running meetings
selling products
listening to others
supervising employees
teaching/instructing/training individuals
relating to the public
enduring long hours
inspecting physical objects
entertaining people
displaying artistic ideas
distributing products
deciding uses of money
managing an organization delegating responsibility
measuring boundaries
serving individuals
mediating between people
counseling/consulting people
motivating others
persuading others
operating equipment
reporting information
summarizing information
supporting others
encouraging others
delegating responsibilities
determining a problem
defining a problem
comparing results
screening telephone calls
maintaining accurate records
drafting reports
collaborating ideas
administering medication comprehending ideas
overseeing operations
motivating others
generating accounts
teaching/instructing/training individuals
thinking in a logical manner
making decisions
becoming actively involved
defining performance standards
resolving conflicts
analyzing problems
recommending courses of selling ideas action
preparing written communications
expressing ideas orally to conducting interviews individuals or groups
performing numeric analysis
conducting meetings
setting priorities
setting work/committee goals
developing plans for projects
gathering information
taking personal responsibility
thinking of creative ideas
providing discipline when necessary
maintaining a high level of activity
enforcing rules and regulations
meeting new people
developing a climate of enthusiasm, teamwork, and cooperation
interacting with people at picking out important different levels information
The Evolution of Marketing of our Garments Factory 1) We create catalogs using models and better quality photos; we mailed to stores and distributed at regional markets; we don’t marketing to the consumer (some of the better quality catalogs are used by store owners to show consumers styles that they did not order; styles that the store can special order for the consumer. Some stores use the catalog images in local ads and to create direct mail order pieces). 2) Often we advertising in industry (B to B) periodicals using better models and higher quality photos/graphics. Still no marketing by us to consumer although these advertisements are sometimes reproduced and used by stores to market to consumers. 3) Sometime we start doing national advertising; this is used primarily as marketing to stores but also accessible to consumers in focused media. Much improved models, photos, and graphics. (What I mean by ‘directed to stores’ is that these ads were used to leverage orders from stores. “Leave an order for X units or pay such and such an amount and we will list you in the ad”) 4) Sometime we find these listings in national ads to be unproductive and they are eliminated. Although we bring business to the store, we are ineffective in bringing business to that particular manufacturer’s product. Sometimes the style advertised turns out to be a loser and it causes more problems than it is worth. National advertising continues as the manufacturer’s
first real marketing directly to consumers, but it is just ‘out there’ as a way to promote the label. 5) There are a few rare exceptions where a manufacturer has expanded beyond this into billboards, radio, TV, etc., but even in these cases, this is always primarily a way to leverage more business from the stores. We will open retail stores and decide to capitalize on their ability to market directly to the consumer. This was the extent of marketing for most manufacturers until the introduction of the Internet, but in most cases, although the technology was adapted, there was not much of a difference. 6) Photos are emailed to stores that have email addresses; to this day there are still some that do not! Not used by us for marketing to consumer. 7) Catalog images are posted on the Internet in a place (not necessarily a website) where stores that have Internet access could view them. Rather than emailing images we could now email a link that the stores could click to view the images. No need to download from an email. Not used for marketing to consumer, although some stores adopted the technology and begin forwarding those links to their customers. Some stores set up their own Internet presence where consumers can learn about their store. Stores that are doing this are extremely rare; however they find it very cost effective and ultimately profitable form of marketing. 8) Much more elaborate websites are developed by us for a more impressive presence that is more comparable to the quality of their catalogs. These websites are still initially conceived for marketing to stores, not for marketing to consumers. More or less an Internet version of their catalogs. These websites are usually unprofessionally designed with few images with a focus to local clientele. They are nothing more than a glorified Yellow Pages ad on the Internet. 9) We will start promoting our websites by including our domain names in B to B advertising, so stores can access our websites when and where they wish. For the most part these websites had a B to B look and feel as we were still used primarily to convey interindustry info to stores. Still very few stores give the Internet a second thought. MERCHENDISING DEPARTMENT Merchandiser is he who builds up relationship with the buyer and acts as a seller. He plays a vital role in an organization in a sense that he bears more responsibility than other in regards to execution of an order. The responsibilities that he bears on the jobs are as follows: He represents as a buyer to the factory. He represents as a seller to the buyers. He inspects Quality as a buyer (from the buyer’s point of view). He looks into the business to flourish more in future. He tries to offer the deal more competitive without compromising the Quality. His object is to satisfy the buyers to progress more of the future business. Our aim is to impress the buyers by means of (i) Right Product. (ii) Right Quality. (iii) Right Quantities. (iv) Schedule Time Now days, major companies are adopting merchandising concepts, which comply with all procedures to execute and dispatch the shipment on time, considering quality, cost and time.
Merchandisers are serious in the success of any garment retail business. They provide the right products at the right time, enabling a company to match with latest market trends and meet the market demand. In the merchandising concept, time management is a gig to manage one's time properly, so he can focus on value adding actions. Today's garment merchandisers have to move with frequent changes in demand and the developing technologies utilized in manufacturing and production. To find out customer requirements, they regularly visit retail outlets, and come up with latest updates from frontline staff. In order to keep an eye on developments in sourcing, site visits are made every week to mainland factories to meet suppliers and study production. In garment merchandising, there is no specific rule, so it's important to be able to think on one's feet. The main procedures of merchandisers are as followed: Understanding Sample Order Merchandiser has to understand the buyer's requirements after receiving specification in the sample order. In many cases, there are modifications pertaining to the specifications in the order to dispatch on time and the right quality. He has to talk with the in-house veterans on the execution problems of sample orders, as the right information is required in decision making. Managing order route card and production timetable Merchandiser has to manage every single production schedule and order route card that helps to follow-up the execution in the planned way. It is expected to be acknowledged of the various descriptions like: design, no. of modules, no. of operators, how many processes, date of dispatch, quantity, output capacity, and deadlines in the schedules. The sub-ordinates are normally assigned to follow-up with execution of the plan. Merchandiser plans the activities depending on the essentials or non-essentials, and top priority are given to the most essential tasks. This is customary that the essential activities are handled personally or with the support of junior merchandisers/sub-ordinates. In a "daily schedule", merchandiser has to carry-out and categorize which is the most significant and urgent task. The activity that has to be focused with full attention to sweep-off non-essential activities and have to be to be corrected by prioritizing to meet the deadlines. Using route card to reschedule activities To get updated on the current status on the order, the route cards should be utilized. The latest status can be fed into the computers. In case, the buyer ask for the goods prior to the deadline, then merchandiser has to reorganize the schedules to accomplish tasks, output capacity, no. of pieces to be produced daily, substitute arrangements, time availability, supply time, scheduling critical ratio, etc. Submitting pre-production samples The pre-production samples should be provided on time to the concerned buyers. Quality of the sample must be verified. If required, revised samples should be made available to the
buyers. Merchandiser should adjust to the required changes demanded by the buyer. The execution of bulk orders should be made only after samples are approved by the buyer. In-process inspection denote between any tasks in order-execution. In case of nonconformation, it is better to focus on the concerns of quality. Merchandisers that work on complete orders have to check deviation to the production teams so that any amendments can be done to avoid the non-conformities. Solving shortage problem The merchandiser should know about the dearth of any commodity such as fabric, yarn, etc... from the beginning. Actions should be taken immediately to arrange required materials, after discovering the shortage. It is expected that the merchandisers should verify quality of the goods prior to execution of the order. If the material is found unavailable, the superior should be informed about the concern. Communicating with associated people and buyer It is essential to communicate with the buyers regarding the order. It is expected to give some time to the buyer to read the sent messages. Merchandiser should to go through the messages received from the buyer and reply on time. In many cases, merchandisers have to provide order status to the buyers. Also, merchandiser has to communicate with the people that are inhouse, vendors, contractors and job-workers. Only through the right communication can one meet deadline for the concerned orders. Apart from the above mention procedures, merchandiser has to assign subordinates to help him in the order execution, and direct the procedures. He has to revise his knowledge from time-to-time to know current market trends. To record preferences for all the planned activities, use daily or time log systems. The Merchandiser should find out exact reasons for time consumption. It is necessary to keep record of time value and keeping it safe, as it is going to be shared with concerned parties/buyers. It is certain that merchandising jobs need huge time planning.
LOGISTIC DEPARTMENT
Logistics is defined as a business planning framework for the management of material, service, information and capital flows. It includes the increasingly complex information, communication and control systems required in today's business environment The process of planning, implementing, and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of meeting customer requirements.
HR DEPARTMENT Improper Planning Improper planning is an important cause of low productivity. If planner can not calculate the quantity of production with time, raw materials, (In house), manpower and machineries the company must be failure to achieve the target of production. Example: Example: Because of absence (number of worker) company couldn’t achieve the target of production though it had in house all raw materials, machineries properly. Solution: Planner should think that worker might be absent. So, there should be arranging extra manpower. Miss use of skill If the skill employees are not set up in right place a company can not expect the goal of proper productivity.
Example: Suppose in a production line there are 65 operators. There must be variation of skilled but if the variation is high some skilled worker have to waste their time and skilled because of unskilled worked cannot feedback timely. Solution: Right person should be right place. Improper monitoring and Judgment If the Quality of production is not being checked timely production will be less. Example: Because of not being checked properly an amount of complete goods can be rejected at end of the work. The rejected goods will not be calculated in final production. Solution: The quality of the goods should be checked at every stage of work. Lack of training and motivation:: All the employees rejected with production must inform about the product by proper training/Motivation etc. Lack of training can cause of bed quality of work. The employees must be motivated so that they can deliver the best product timely. Example: Suppose the quality In-Charge did not the proper training of checking the products. So, they could not motivate their sub ordinates. Ultimately some bed quality product will be made that must be at the end. Solution: Before starting the bulk production all employees (Top to Bottom) should be trained up about that product. Excessive work Excessive work can cause low production. If the workers don’t get any rest within 7 to 10 days of work physically they will be unfit to work. So they cannot give their best effort. Example: Suppose a machine operator has been working for two weeks without any rest. During working hour he might be sick that can cause low productivity in his whole line. Solution: 7 day rest policy must follow. Unequivalent Judgment To make an important decision everybody related to the work should participate equivalently. Example: If a manager can not Judge the opinion of his subordinate he can make mistake to take the right decision. Solution: The decision maker should be impartial to everybody. Avoiding the health and Safety policy: If health and safety policy is not followed the working environment will be unhygienic for the employees that make cause low productivity. Example: Temperature of the working area is high. In such situation the workers can not work properly and achieve their target. Solution: A company must have health and safety policy and that should be followed by everybody.
Unpleasant Situation Any unpleasant situation can break up the work production. Example: Suddenly electricity supply can be stopped for long time. Solution: Company must have back up of electricity supply such as generator. Late payment If the workers are not paid timely they will be dissatisfied and it will affect their work. Example: Worker can not give attention to work if they don’t get their wage timely. Solution: They must be paid as per local labor law. Lack of logistic support: Lack of logistic support delay the work and it’s may cause of low productivity. Example: suppose a number of worker come to their work because of the company could not send the vehicle timely. Solution: Company should monitor closely if the the logistic support are provided properly or not. Improper layout Improper section and line lay out may cause law productivity. Example: Long distance between related working areas can delay the work and it will effect the production. Solution: All working section of the production should be set up sequent. Job evaluation:: Unfair Job evaluation can make dissatisfaction in the worker mind. A dissatisfied employee can never give his best effort in his work. It may cause of low production. Example: If an industrial worker doesn’t get any Increment or promotion he will not work hard anymore. Solution: Job evaluation should be proper without any discrimination. COMPLIANCE The ready-made garment sector is the backbone of the Bangladesh economy. The RMG sector is now the single largest foreign exchange earner of the country, earning 76% of the foreign exchange earnings. In the last year only Bangladesh earned US$ 7.9 billion dollars in foreign currency through export of garments. The RMG industries have created direct employment opportunities for millions of women who would have otherwise remained unemployed. So the workers of this sector are very much important factor for attaining the goal of the company. The productivity, on time delivery, profits etc are totally dependent on the labor force. So the company should take some decisions in order to ensure the facility for the workers. Company should follow the social codes of conduct.
What are Social Codes of Conduct? Social codes of conduct are rules and guidelines imposed by buyers upon themselves and along their supply chains, both in response to consumer pressure and as part of comprehensive marketing strategies aimed at improving their image. Social and environmental standards as outlined in the Bangladesh Labor Law and Environmental Act set out minimum standards to which manufacturers in Bangladesh must adhere. In contrast, complain with general codes of conducts, which usually contain standards slightly higher than those defined by the Bangladesh laws, is voluntary. The social compliance status of the Bangladesh RMG industry refers to the extent to which the industry meets the requirements of the labor law and/or any other buyer-specific code of conduct or voluntary certification scheme. The current social compliance status of the industry is not satisfactory; there is an urgent need to improve the situation.
For these the manger has taken the following decisions: Decisions taken by the compliance manager: The manager wants to ensure the facilities for the labor force both at their work environment for physical safety and also for financial security. SociaImpacts of the Sector Decisions of the manager
Physical security
1. Fire extinguisher 2. Day care centre 3. Fast aid 4. Emergency stair 5. Free working space 6. Supply of hygiene water
Financial security
1. Wage structure 2. Fair wage structure
If the manager can implement the above decisions in a right way then he will be able to ensure the productivity of the industry. Importance of such decisions: As we know the RMG sector is an important sector in our country. It’s a way of earning foreign currency, creation of employment and so on. Let us discuss the importance of the decision for the company as well as for the country. The importance of such decision can be viewed from two perspectives. These are: 1. from the company view point 2. from the social view point 1. From the company view point a. Increase productivity: Productivity means a performance measure that includes effectiveness and efficiency. Effectiveness is the attain of goals and efficiency is the ratio of effective output to the input required to achieve it. If the company can ensure the facilities for the company it will motivate the workers .This motivation will bring positive effect on company’s productivity. We know motivation is the process that accounts for an individual’s intensity, direction, and persistence of effort toward attain a goal. Now if the manager set a goal to produce a certain unit for a week, then he has to ensure that the workers who will make this goal happen are getting the facility to work within the company. If they are motivated perfectly then they give the effort in working. b. Meet the client’s demand on time: If the company can attain the productivity later they can meet the demand made by the client on time. If they can not make the demand it will create a long term negative effect. They will lose the customer base. In turn it will decrease the long run profit of the company. So to ensure the delivery are making rightly the compliance manager should ensure the facility for the workers. c. Earn profit: The happy workers can make a happy work environment for the company. These happy workers can be the weapon to earn profit comparing with the other company. We know the garments industry of our country is facing a trouble regarding employee dissatisfaction. These will create lots of physical damage and decrease the profit. But if the above measures are taken the company can avoid losses and can earn targeted profit. d. Removal of workers dissatisfaction: Workers can express their dissatisfaction through three ways. The cheap labor force is the major characteristics of RMG industry in our country. There are lots of companies in this sector. So the labor force may quit into another company if they do not get the facility. Voice of the workers may rise for dissatisfaction. It is very unpleasant but common affair in our country that the labor union is expressing their disputes to the owner side by doing the violating act. The dissatisfaction may create chronic absenteeism; reduced effort and increased error rate. These all are creating a negative effort on the performance of the company.
So to remove the workers dissatisfaction the company should ensure the facilities fir the labor force.
2. From the social view point: RMG industry is a major export earning sector in our country. So this sector has a very important effect on society as a whole. By ensuring the facility for the labor force the company can bring the well being for the society also. These are discussed below: a. Women Empowerment
It is well recognized that women’s participation in income generation activities lends them a better status within the family and provides them with considerable freedom. A job ensures equitable access to household resources (nutrition) and larger investment on female human capital (health and education). Employment opportunities draw attention to women’s needs for public facilities such as transportation, communication, safety etc. and create a demand for policy response in these areas. It also has created a demand for education and health. As the income by the female member reduces dependency on male income it reduces their vulnerability. It also reduces the possibility of domestic violence against women. Expansion of women’s employment has contributed positively to the improvement of the savings behavior of the poor people since women tend to be better savers. Employment in the RMG industry has provided direct access to cash income for the first time to many poor women. A survey, conducted by the BIDS showed that for 96 percent of the female workers in the non-EPZ areas, work in the garment industry was the maiden wage employment8. The survey also showed that women were taking up such roles paying for house rents and schooling expenses for their children or brothers and sisters. Despite the fact that they have lower incomes, the female garment workers were spending the same amount as the male workers on the studies of their family members. The same survey further showed that female workers were spending their earnings on their marriage, thus taking a big burden off their families. The independent earnings also allow these women to have a greater share in household decision-making. Evidently, wage work at the garment industry has empowered women and improved their status. Savings Regular earning enables a large number of the garment workers to go for some savings. Workers investments on family pension schemes etc. create savings.
b. Population Control Employment opportunities especially for women created positive impact on family planning and population control in the country. Independent workingwomen are getting more conscious about the advantage of a small family, and are exposed to modern family planning methods. Working adolescent girls tend to avoid early marriage as they have their own source of income and are self-dependent. The mean age at marriage for girls working in RMG factories tend to be higher than the national average. How to implement the plan: 1. Healthcare Activities for Workers The medical centers design to provide free primary health care, medicine and advocacy services on reproductive health issues to the garment workers. Such centers can be helpful for the workers to safe their life in any times of accidents. 2. Earn and Learn Programme Under this programme, the company can also provide skill development training on tailoring, embroidery, garments machine maintenance, manufacturing and wool knitting to these students. 3. Work Place Safety Programmes for Workers The company can implement a number of programmes to ensure work place safety for workers as well as management personnel of its member units. In addition to providing support to the members to comply with the safety rules set by the government, the company can organize training and awareness building programmes for the workers and the management staff. The association regularly monitors and follows up proper implementation of safety compliance by individual member factories The Company’s Safety Measures Cell, which organizes the awareness and training programmes, has provided fire prevention and safety training to a lots of employees. The company can also provide compensation to the affected workers and their families. In case of death or injury on work, it pays the cost of treatment and extra compensation to the affected worker or his family. The association also employs the members of the victim's family. 4. The Crash Programme to Avert Work Place Accidents A Crash Programme can be taken to further raise awareness among the workers and management to avert work place accidents. The programme included awareness building on fire prevention, first aid, fire fighting equipment, proper electric wiring and evacuation facilities. Teams formed of experts from the Fire Service and Civil Defense Department, visited and checked the fire safety measures where they demonstrated the fire prevention and evacuation drills in the factories.
5. Launch a day care centre The most of the labor force of the company is female workers. Many of them having children. So if they get a day care centre for their children they can continue their work in tension free manner. 6. Ensure food and sanitation The company can establish a canteen within factory to serve the food at cheap rate for the workers .They can provide clean water, safe sanitary system for the workers. 7. Reform wage structure The company should design the wage structure in a way that it is free from gender bias. It should follow the government wage structure regarding this industry. Consequences of such decisions Already we have discussed the importance of creating facilities for the labor force of the industry. From this discussion it is clear that what will be the consequences if such decisions are implemented the company will be benefitted by many ways. The benefits will be reflected by the following ways: 1. Increased productivity 2. Increased profits 3. Less absenteeism 4. Least error in works 5. Strengthens the customer base 6. Less turnover 7. Better work environment 8. Safe work place 9. Minimize the labor union disputes So it can be easily understood that by implementing the above facilities the company will be able to generate the benefit which will sufficient to cover the cost incur. Conclusion: To mitigate our target through increasing productivity, we found that its our big challenge to implement this big budgetary decision. From the decision tree, here the cost of increasing productivity is TK 85,15,00,000.00 and our forecasting revenue is TK. 92,00,00,000.00 and our desire profit is 6,85,00,000.00. Here profit surplus is Tk. 1, 10, 00,000.00.