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Corporate Scenario
Historical Background of the Company At a Glance Future plans of BEXIMCO Group Mission Vision
Corporate Structure
SBU in a Nutshell
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Corporate Scenario: Beximco is the largest business conglomerate of private sector in Bangladesh. Apart from the national government Beximco employs highest number of people in the country. Over the years since started it could gain a position to symbolize effective management, fund generation, and diversification of exploring business opportunities. Today it is one of the most known names in the countrys business arena. Beximco practices an appropriate combination to delegate authority and responsibility that works to motivate employees and yield better performance for the company as a whole. Recruiting the efficient and potential people, planning to develop human resources, exploring business opportunity, and information management have strengthened the effectiveness and image of the group.
Historical Background of the Company Bangladesh has come a long way since its independence. It has improved key social indicators and the well-being of its people. The Beximco Group of Companies has been an integral part of this progress. BEXIMCO's philosophy is simple: In identifying opportunities, it has targeted those industries, which the country needs most in order to progress and to improve living standards. Beximco is also focused on those industries, which make the most of Bangladesh's competitive advantages in the international market. Bangladesh Export Import Company (BEXIMCO) Ltd. was the first private-sector company to be registered in Bangladesh as a public limited company. The company started its voyage in September 1972. Since then, Beximco Group has been leading public equity offerings in Bangladesh. At the end of 1996, the ten publicly listed companies of the Beximco Group accounted for Tk. 33.87 Billion or 20.4% of the market capitalization of the Dhaka stock Exchange and 1k 31.12 Billion or 21.3% of that of the Chittagong Stock Exchange (CSE). Beximco shares are also the volume leaders on the national bourses, accounting for 22.08% of turnover at the DSE and 29.23% of the turnover at the CSE in
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Strategic Eras
1960 - 70s
ENTREPRENEURIAL SET UP
1980 - 90s
BEXIMCO GROUP OF COMPANIES
with Growth through Addition of Diversification emphasis on professionalism Business And management systems
Establishment of new business entities is not the lone requirement for an emerging economy like Bangladesh. A reliable service infrastructure, especially in financial services is also a vital need. Anticipating this Beximco Group decided to start Beximco Securities Ltd., which is the first firm formed especially for the individual investors, offering a customer-friendly environment as well for its growing number of individual clients.
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At a Glance:
Company Profile: Corporate Headquarters: 17 Dhanmondi R/A, Road No. 2 Dhaka -1205, Bangladesh Phone: 880-2-8611891-5, 8618220-7 9677701-5, 7701165 E-Mail: Beximchq@Bextex.Net Web Site: Www.Bextex.Net Operational Headquarter: Beximco Industrial Park, Sarabo Kashimpur, Gazipur, Bangladesh. Factory: Sarabo, Kashimpur, Gazipur Date Of Incorporation: 30 May, 1984 Commercial Production: 1990 Business Line: Manufacturing And Marketing Of Yarn, Woven, Knit And Denim Fabrics. Listing Status: Public Listed Company. Stock Exchange Listing:
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The future plans are explicit from the following statement of the company chairman; our strategy of re-positioning ourselves for 2005 is going ahead successfully. We have now formed very strong business alliance with most of the large & well-known garment retailer and brands in USA and Europe viz. JC Penney, Levis, PVH, Mervyns, Zara, H&M, and C&A among others. We are now In the process of finalizing relations with those big names who not so far on our customer list. We have also initiated orders with the two largest volume buyers in the world-- Wal-Mart, the single largest company in the world and Carrefour, the largest retailer in Europe and second largest retailer in the world. Our plans are to become an essential supplier to all these companies and have they relied heavily on us to supply those better value-added products. Whatever changes 2005 brings we will he firmly established as the key supplier to the biggest volume buyers as well as the best & most fashionable names in the trade. (Source: Annual report, 2001)
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Mission: Each of the company activities must benefit and add value to the common wealth of the society. The company firmly believes that, in the final analysis it is accountable to each of the constituents with whom it interacts; namely: the employees, shareholders. the customers, the business associates, the fellow citizens and the company
Vision:
Building a true marketing led enterprise with motivated work force, innovative vision, strong revenue and product portfolio, customers satisfaction and understanding of global market.
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Corporate Structure: Beximco is a group of 34 companies and most of these are being operated through eight divisions. These divisions are created of the companies that are strategically related. The divisions namely are as follows
Textile Division
(Contains 6 Companies)
Jute Division
(Contains 3 Companies)
IT Division
(Contains 3 Companies)
Training Division
(Contains 1 Companies)
Ceramic
Figure 01: Corporate Structure The side branches are the divisions. The segments at the bottom of the tree are not considered, as division rather exists at their names.
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LIST OF MAJOR COMPANIES INCLUDED IN BEXIMCO GROUP: Division Textile Division Company Beximco Synthetics Ltd. Beximco Apparels Ltd. Beximco Knitting Ltd. Beximco Textiles Ltd. Beximco Fabrics Ltd. Beximco Pharmaceuticals Ltd. Beximco Infusions Ltd. Pharmatek chemicals Ltd. I&I Services Ltd. Beximco Engineering Ltd. Shinepukur Holdings Ltd. Bangladesh Export Import Ltd. Beximco Holdings Ltd. New Dacca Industries Ltd. Sonali Ash Ltd. Esses Exporters Ltd. Beximco Foods Ltd. Beximco Fisheries Ltd. Beximco Media Ltd. Independent Television Information Technology Division Others Aviation Daily Independent Beximco Softech Ltd. Beximco Systems Ltd. Bangladesh Online Ltd. Shinepukur Ceramics Gammatech Ltd. GMG Airlines Bextrade Ltd
Chemical Division
Real State & Construction Division Trading Division Jute Division Marine Food Division Media Division
The divisions of the Beximco group have been introduced as following in a brief way.
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CHEMICAL DIVISION Beximco Chemical Division consists of four companies and is mainly involved in pharmaceutical business so far. Beximco Chemical Division with its annual turnover of fifty five million dollars is perceived as the flagship of the Beximco Group. Products and services offered by the Chemical Division are trendsetters in the country.
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Beximco Pharmaceuticals Ltd Beximco Infusions Ltd. Pharmatek Chemicals Ltd. I & I Services Ltd.
BEXIMCO PHARMACEUTICALS LTD. Beximco Pharmaceuticals Ltd. or BPL is one of the leading pharmaceutical manufacturers in the country. BPL manufactures and markets a high quality and cost-effective range of about 80 formulations covering all major therapeutic groups. The commissioning of BPL's Basic Chemicals Unit in 1990, established a very significant milestone in the history of the country's chemical industry. It not only met 90% of the country's demand for two vital raw materials, ampicillin and amoxycillin but also started selling these to overseas markets, including South Korea and Malaysia. BEXIMCO INFUSIONS LTD. Beximco Infusions Ltd. Or BIL, another wing of the Chemical Division went into production in July 1993 with an annual production capacity of 6 million bottles of life saving I.V. fluids. In only three years, BIL managed to gain substantial headway against its competitors attaining a 30% market share in 1996. The sophisticated manufacturing facility and environment control system of the plant is believed to be the most modern in the country, as well as the region. PHARMAPLAN GMBH of Germany, a leading name in IV solutions worldwide, built this facility on a turnkey basis. Well reputed for its quality both at home and abroad, BIL is the first and only Infusions Company in Bangladesh to obtain ISO-9001 certification. OTHERS Apart from divisional identity there are some more companies being operated within the groups corporate structure.
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Planning:
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Identify and develop new Provide analytical support to Becoming the world biggest group strategic initiatives Develop and enhance other partnerships International field projects and field project-preparedness Regional Development Additional Capacity Building Public awareness, policy advocacy and constituency building The time-line for desired outcomes is December 2021. Beximco Group will gather field evidence that we reduced violence and improved the human rights situation for the areas where our teams work. Beximco Group will commission external evaluations of its field projects. Organizational
Improve research portfolio Use of more advanced methods management Train new leaders and techniques. and The Best Workout Routines Adopting new technique and methods to achieve the long run and increase goal Developing a strong structural and foundation Operation and quality Improvement and excellence; New effect and technology Cost minimization Product development; Profit maximization as much as possible Continuous training and
competitiveness
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fundraising,
physical and psychological care for staff, security and administrative support. Beximco Group will be able to deploy 200 or more people in projects at the same time by developing needed training and reserve capacities. 500 people will have completed Beximco Group
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field
project
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engagement of our global network, in all of the following sectors. The Beximco Group will clarify and implement focus and role. Beximco Group will make a special team on HRM named HRST (proposed) The Beximco Group HRST will be able to make informed, effective and efficient policy decisions, in the timescale required, and based on the best available information clearly presented to them. Beximco Group will establish an international office in the Global its governance
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organizational
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Brand reputation (Beximco) Country Market Leader Geographically Diverse Business Great management skills Financial solidity Quality products Planning and development capacity Interdisciplinary know-how Strong Supply-Chain Network Efficient and effective organization Primary references for projects and characteristics Financial solidity Growing sales and Profit Customer loyalty combined with expanding closed ecosystem Strong financial performance( $834 million ) Retail stores Strong marketing and advertising teams Brand loyalty Good owner structure Skilled Human resources Largest Geographical Coverage Access to widest distribution Network though .. High Ethical Standard Share Buyback
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Weaknesses:
Most of the business of Beximco group targeting upper or upper middle class Mixture of different culture use as an excuse not to solve problems Different sub group not work together No long distribution channel Lack of In-house Consulting Division Dependence on Third Party Suppliers High Attrition Rates Acquisition Integration
Opportunities:
Economic growth Huge need of products New international gateway Credit policy can be adopted to increase Sales Restructuring a Business
Threat:
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Rigid government regulation Change of government might lead to competitors having more clout Devaluation of currency (specially TK) Changing consumer needs and habits Open source projects Potential lawsuits Imported raw materials, in some of the companys product Major Player may enter target Market legal and ethical issues Effect of seasonality upon getting raw materials and sales Competition with Beximcos owns smuggled brands.
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Industry Verticals TEXTILES (BEXTEX, YELLOW, SYNTHETICS, JUTE) PHARMACEUTICALS (BEXIMCO PHARMACEUTICALS) CERAMICS (SHINEPUKUR CERAMICS) Real Estate ENGINEERING {BEXIMCO ENGINEERING LTD. (BEL)} M ARINE of FOODS DIVISION Power Buyer In some case ICTproduct & Mselling EDIA {B EXIMCO buyers are so power to bargain asCOMPUTERS the same , product are available in market, but in TV, INDEPENDENT few cases they are bound to BANGLADESH ONLINE specially of BPL product, the product is different than (BOL)} other product in market by AVIATION (BEXTRADE quality and rarity. LIMITED, GMG AIRLINES) FINANCIAL SERVICES (IFIC BANK, BEXIMCO SECURITIES) ENERGY (BEXIMCO PETROLEUM, BEXIMCO POWER COMPANY)
STBU Star
Potential of Entry 29 Star Not so easy to entry into this kind of industry specially Cash Cow 54 when Beximco considered as the Dog 9 largestMark group of the Question 50 country Rivalry among 10 Star organizations 25 There are 31 group operating their business in Bangladesh with nearly product and services, so far rivalry exist among Star 49 them
Substitute of Question Mark products 36 Beximcos products are available in market, so far the price of product is negotiable, Question Mark buyers are 47 able to bargain, and Price is also low.
Power 5 of suppliers Around 30 suppliers 3.1 supply row materials to Beximco group from national and international market, So suppliers doesnt get enough power rather Beximco get bargaining 37 power
Substitute Products
1.2
BCG Matrix:
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Implying
in
In BCG matrix Beximco Pharma, Aviation, ICT &Media, and Textile is at star with High Market Share and High Growth Rate.
In BCG matrix
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In BCG matrix Beximco Ceramics is at Cash Cow with Low Market Share and High Growth Rate.
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In BCG matrix Beximco Ceramics is at Dog with Low Market Share and Low Growth Rate.
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Functional Department:
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Span of Control:
Span of Control of Beximco Group is so wide, they have effective and efficient employers and employee, all of their employees are sincere about their job responsibility. So far the control is easy and the managers, directors, and supervisors jobs become so easy. Approximately 13 employee controlling by a supervisor in Beximco Group.
FLAT
Vice Chairman
Director
Director
Director
Director
Director
Managing Director (Real state) Managing Director (Bextex) Chief operating Officer
Managing Director (BPL) Managing Director (IT & Media) Organogram: Managing Director (GMG) Managing Director (IFIC Bank) Managing Director (SCL) Managing Director (Energy)
Director Commercial
Internal Auditor
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Leadership styles:
Leader plays an important role in any organizations development. The personality of the leader and his style of leadership can determine the extent to which the organization will develop.Leaders need to be visionary and have the ability to influence others in order to bring about the required change to Baximco Group. The leader can either reduce resistance to change, or increase the pressures for change, or be a pressure for change. In order for employees to be more efficient Leaders must provide staff with a spirit of involvement, motivate them through co-operation and be willing to learn from the organization. Analysing different styles of leadership will help improve understanding and recommend which styles Salman F Rahaman & Sohel F Rahaman must adopt. Different leadership styles include: Autocratic, Bureaucratic, Laissez fair & Democratic leadership styles Autocratic Leadership: Vice Chairman implies the autocratic leadership. He retains as much power and decision making power. He does not consult staff, nor allow to give any input. He wants that staff will obey him without receiving any explanations.
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Leaders & Leadership Designation (Beximco) Chairman Vice Chairman Director Secretary Leadership Laissez-fair Autocratic Democratic Bureaucratic Source of power Referent power Coercive power & expert power Reword power Legitimate power & Expert power
Although each leader imply only one leadership style they sometimes change their leadership style depending on different situations. Training employees is essential; to encourage motivation, increase self-awareness and productivity surrounding their new roles and responsibilities. This will also help sustain the transformation.
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Employee Behavior: Most of the Employee of Beximco Group is Y type people, they are self-motivated, energetic, willing to work, and take responsibility on their solder. But in Case of X type people (People who does not want to work, Lazy, Gullible) they practice some motivational factors. To achieve the goal set by the management Beximco Group always sincere, as they believe human resources is the key of success, so far they always care about their employee and employers. They allow the needed factors of motivation to the employee. Factors includes Motivational Factors of Beximco Group Monetary (Intrinsic) Factors Non-Monetary (Extrinsic) Factors
Attractive Salary Wages and allowance High rate of Bonus Liberal monetary incentives Allowance such as over time allowance, medical allowance, leave travel allowance, house rant, educational and re-creation allowance. Special allowance Job securities and job enrichment Fair treatment to employee Recognition of good work Encouragement for self-development and carrier development Delegation of authority to the subordinate Congenial work condition Helpful attitude of management Fair opportunity of promotion Labor participation management Designation and status
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Reward: A special and unique technique of motivation of Beximco group is intra business unities business case competition regarding existing problem solving. Beximco Group practicing the tactic since 2004 and the tactic doesnt disappoint the management to achieve the goal. The securer of the first three position get medal from the honorable chairman of the group at annual general meeting. It makes the employee interested to work with full enthusiasm and to know the problems of the organization to solve. The timeframe of this reward usually consider as the annual general meeting, but some time they make it Quarterly, Half yearly, and as usual time frame yearly.
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Controlling types (Beximco group): Physical, Human, Informational & Financial resources are the main areas of controlling of Beximco Group. Here they control the whole organization by introducing three levels of control.
Above all, Beximco Group focuses on feedback controlling rather than feed forward controlling or concurrent controlling. takes place after the activity is done -identify the problems and fix the problems may already have caused damage or waste.
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The controlling implies on from a districting operational process. Beximco group focuses on some controlling process (steps) those are establishing standards
Establish standards
Measure
Compare with Square, ACI
Action
Change standard
Financial control
Organizational control systems Budgetary (calendar year) Operating Officers perform this Job Financial statement (yearly, half yearly & quarterly) Ratio analysis (monthly, specially IFIC & Securities) Financial audit half yearly Contingency leadership Bureaucratic control Mid- Level Management (Director, CEO, Secretary)
Structural control
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