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Prepared By Masroor H. Khan Zeeshan Rahman Fariha Tabassum A.K.M Sharfuddin Chowdhury 0930351530 0930194530 0930242530 0930250530
LETTER OF TRANSMITTAL
April 8, 2010 Mr. M. Saidur Rahman (Saeed) Lecturer Department: School of Business North South University Subject: Submission of group report
Dear Mr. M. Saidur Rahman (Saeed), Here is the group report on the Profile of an Entrepreneur and his business that you asked us to prepare as a part of requirement for our BUS101 course.
In presenting this report, we have tried our level best to include all the relevant information and the explanations to make the report informative and comprehensive.
It was a very enriching and enthralling experience for us to prepare this report. Our report writing skills and communicating skills have improved a lot while doing it. If you should need any kind of assistance in understanding this report, please do not hesitate to consult with us in the classroom.
Sincerely, _______________ Masroor H. Khan ______________ Zeeshan Rahman _______________ Fariha Tabassum _____________ Sharfuddin
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Acknowledgements
We would like to thank Almighty Allah for giving us the patience and the ability to work hard with tremendous devotion. First and foremost thanks to our Course Instructor, Mr. Saidur Rahman (Saeed) for his invaluable guidance, encouragement and suggestions throughout the entire BUS101 course. Without his support and faith in us it would not have been possible to complete and submit this report.
We are deeply indebted to our friends and entire family of Mr. Moktar Hossain without whom this report would not have been a success. Their invaluable suggestion and information have taught us much and as a result our preparing this report has been a very positive and uplifting experience.
Special thanks to: Md. Moktar Hossain, Managing Director, Diamond Melamine Pvt. Ltd Md. Moktar Hossains family {Mrs. Moktar Hossain, Mosharraf and Moshtaq {son}} Minhaz Ahmed, friend, Studying ECONOMICS in NSU Mr. Abdur Rauf Chowdhury, Factory Manager, Diamond Melamine Pvt. Ltd Mr. Forhad Hossain, Senior Supervisor, Diamond Melamine Pvt. Ltd
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Executive Summary
We have prepared the following report on the profile of a Business Entrepreneur, Md. Moktar Hossain and his business which is Diamond Melamine Pvt. Ltd.
The following report has been divided into five parts. The first part includes Introduction where our research methodology and objectives, etc. In the second part of the report we have covered the Entrepreneurs Background you will know about the entrepreneurs family background, academic information, work experience and abilities, the staring of his current business, current family conditions and his future plans.
The third part is about the Business Background of Diamond Melamine Pvt. Ltd which includes key information about the companys Vision and Mission statement, initial finance, market share and the prospect of the Melamine industry locally and globally.
We have provided comprehensive and informative materials of Business Analysis which covered the innovation, interpersonal relationship, detailed SWOT analysis, business management process, factory and production, products life cycle, turnover comparison graph, ethical and philanthropic activities of the Entrepreneur, and lastly risk management and awareness of Diamond Melamine Pvt. Ltd.
Finally, the fifth part is the Conclusion of the report in which we have commented exposing our opinion on the business and the entrepreneur. This part also carries few recommendations that we have made to the business and the entrepreneur for overcoming some of the flaws and mentioned some methods of increasing efficiency and productivity based on what we have noticed in our comprehensive study process of the business while preparing the following report.
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Table of Contents
Serial no: 0. Letter of Transmittal Acknowledgement Executive Summary Introduction 1.1 Research Objectives 1.2 Research Methodology 1.3 Teamwork and Planning Entrepreneurs Background 2.1 Family Background and Academic Information 2.2 Career: The Places He Worked In 2.3 Experience and Abilities (In melamine sector) 2.4 How the Present Business got started 2.5 Current Family Condition and Future Plans Business Background 3.1 VISION 3.2 MISSION STATEMENT 3.3 Initial Finance 3.4 Market position/market share 3.5 Prospect of the industry (Locally & Globally) Business Analysis 4.1 Innovation 4.2 Interpersonal Relationship 4.3 SWOT Analysis 4.4 Business Management 4.5 Factory Premises & Working Condition 4.6 Production 4.7 Product life Cycle 4.8 Performance in terms of annual turnover comparison 4.9 Business Ethics and Philanthropy 4.10 Risk Management and Awareness Conclusion 5.1 Comment on the Business and the Entrepreneur 5.2 Recommendation to the Business References Item Page No 2 3 4 6 6 6-7 7 8 8 8-9 9 10 10 11 11 11 11 11-13 14 15 15 15 16 17 18 18-19 19-20 20-21 21-22 23 24 24 24-25 6. 26
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1. INTRODUCTION
1.1 Research Objective
Although this report was carried out within a short span of time, but we have tried our best to provide the best, accurate, true and relevant information without which the report is not considered to be complete. The following group report on the Profile of an Entrepreneur and his business was asked to prepare as a part of requirement for our BUS101 course.
The main objective about the research is to know about a successful Business Entrepreneur and how effectively he manages and operates his business. The research will help us in the future to have elaborate information and real life experience about the risks and challenges involved in being an Entrepreneur. This research has developed our public relation, listening and communication skills as we conducted interview of the entrepreneur and some of the related business people.
We have got to learn the methods of preparing a formal business report which has enlightened our knowledge of report writing. Also presenting our research materials in a formal group presentation environment was a major motive which will help us to build confidence of expressing our views openly. This will vastly improve our narration skills.
Mr. Moktar Hossain invited us to his factory to know about his business and its operations which helped us tremendously to prepare the report.
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When we visited the factory at Brahmmonkitta, Keranigonj we were introduced to Mr.Abdur Rauf Chowdhury (Factory Manager) with whom we had a formal interview. He then introduced us to the senior most factory supervisor, Mr.Forhad Hossain who guided and showed us around the entire factory. Questionnaires for the employees and workers on different aspects of the company also helped us in getting the bulk of the information to know how Diamond Melamine Pvt. Ltd implements its managerial process.
We have also gathered plenty of information about the report from the company website, internet resources, text books and combined efforts of our group.
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2. ENTREPRENEURSS BACKGROUND
Md. Moktar Hossain hails from Rahamatpur, Keranigonj. The enterprise under the ownership of Mr. Moktar Hossain is Diamond Melamine Industries (PVT) Ltd. His dream, devotion, hard work, and dedicated behavior made him the emerging business idol and the genius Business Entrepreneur.
Md. Moktar Hossain started his education from his villages primary school, from where he passed with scholarship in class five. After passing class five, he joined Keranigonj high school, where he got scholarship in class eight, which was the one and only sources of his educational expenses. At the time when he was a student of class seven, his father died, leaving nothing but a big family. In 1979, he passed S.S.C examination from the same high school.
Even though, the other two elder brothers of Md. Moktar Hossain were engaged in job, but it was ironical that they had not supported the next two brothers. He got financial help throughout his early life as well as his education career from his immediate senior brother, Md. Rajjab Sharif, who was employed as a compounder in a pharmacy.
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He then joined with his brother Md. Rajjab Sharif as an assistant compounder in the same pharmacy. From the little saving the two brothers started to stock medicines in 1974 and sold the medicines at a higher price when they were scarce in the market. By doing so, Md. Moktar Hossain together with his brother established a drug house in 1976, near Mitford.
He was so devoted to their business that he had no personal life. Despite of their earnest trying, they could not amass a lot with which they could establish a business. In the mean time his elder brother Md. Rajjab Sharif got married with a popular business mans daughter of old Dhaka. Later on, he was also the father in law of Md. Moktar Hossain.
With their little savings and support from their father in law, two brothers started to import Dano milk powder, then in 1979 they started to import Red Cow milk powder .This is the turning point of their lives.
Initially his elder brother Md. Rajjab Sharif was against his proposal as they knew nothing about melamine industry but Moktar Hossain was persistent in his will that he can make the business possible. He then went to TAIWAN where he took training on melamine industry for six months. His dream came to reality in 1989, when he unveiled the door of Sharif Melamine Industries (PVT) Ltd at Kajpur. As melamine was new at that time in Bangladesh, he saw a great potential in this sector. He then went for heavy advertisement for Sharif Melamine Industries (PVT) Ltd, and within a short time became the top melamine producers of Bangladesh.
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A poor boy who could not afford daily meals regularly, who did not get much opportunity to be educated but become able to raise himself from worst situation of life and became a successful business man in this society, whom we can follow as the role model of our life.
Even when he is 50 years old, Mr. Hossain gets up from the bed at 5:30 AM and goes to bed at around 11 AM regularly because he enjoys working very much. He believes that every single moment is important for a business life.
In the future Mr. Moktar Hossain has plans to expand the factory building and bring in new technologically advanced machinery for production.
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3. BUSINESS BACKGROUND
3.1 VISION:
Diamond Melamine Industries (PVT) Ltd strives to be the leading melamine crockery producer in Bangladesh and seeks to meet the demand of its local and global consumers and contribute in making peoples life better.
Melamine dinnerware are preferred by an increasing number of population and growing its demand for its durability(lasts more than10-12 years) and affordability .Whereas ceramics, glass,
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steel, tin, etc (fragile, breakable, non-durable products)became unpopular and have been replaced by resin melamine products. Melamine products are mainly produced and targeted for middle and lower income groups (i. e, majority of worldwide income groups), its market share increased rapidly due this socioeconomic structure.
Some of the major companies producing melamine crockery are: Sharif Melamine Industries Diamond Melamine Industries (PVT) Ltd. United Melamine Industry Classic Melamine Industries Ltd. Crown Melamine Industries Ltd. Bangladesh Melamine Industry Ltd. (and many more).
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0.5
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4.5
Market Share on the basis of Production Diamond Melamine Industries (PVT) Ltd. United Melamine Industry Sharif Melamine Industries Crown Melamine Industries Ltd 2.4 1.5 4.1 2
The above data represents the results of a survey conducted by Diamond Melamine Industry. The graph shows comparisons between the 4 major competitors in the Melamine industry with respect to its market share and position. We can observe that Sharif Melamine Industries is leading the melamine market with a fair margin from its nearest competitor i.e. (Diamond Melamine Industries (PVT) Ltd.). Although Sharif Melamine Industries market share is the highest, but taking the time period into account, Diamond Melamine Industry has a remarkable growth in the market share within a relatively shorter period of its operations with their superior quality products and magnificent designs that created larger customer base throughout the domestic and global market. Crown Melamine industries Ltd. and United Melamine industry are behind Diamond Melamine Industry with a fair proportion of market share.
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Diamond Melamine has exported its high quality products in countries like Bhutan, India, Nepal, Saudi Arabia, UK and many more.
Diamond Melamine has also undertaken many deals of customized order for many local and international firms and organizations by carrying out CONTRACT MANUFACTURING. This was done by attaching private-labels or logos of the respective buyers firms in Diamond Melamines crockery and dinnerware products.
Some of the major companies Diamond Melamine has done Contract Manufacturing for include: BANGLADESH NAVY BANGLADESH ARMY UN(UNITED NATIONS) SMC ORSALINE COMPANY Bangladesh UMBRO ( UK, IRELAND, FINLAND, SWEDEN & SPAIN ) PUMA ( Finland )
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4. BUSINESS ANALYSIS
4.1 Innovation
The designing of the Diamond Melamine Products are very innovative. Special emphasis has been given on developing modern designs, so that the companys performance stays in par with time. An expert panel of local designers has been employed on regular basis when the company needs to bring in new designs for their products. Moreover Diamond Melamine is constantly in touch with highly professional international designers who work for them on a contractual basis and has the expertise of working with many multinational firms. This crucial measure to bring in innovation in their products is taken so that the company can maintain an international standard and stay ahead of its competitors. Mr. Moktar Hossain has also planned to establish 20 more technologically advanced machinery within the next 18 months which will help Diamond Melamine to increase their level of production.
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Strengths
Modern Machinery(Taiwan) High Quality Unique Designs Best Quality Raw Materials(China, Thailand, Taiwan) Maintaining Strong Ethics Affordability Durability Low Production Costs Skilled Labor Contacts of foreign Buyers Strong Distribution Channels Performance Evaluation System Strong Human Resource Base Efficient Management Lowest wastage rate High productivity rate Brand Image Greater Economies of scale Panel of local and international designers
Weaknesses
Budget Constraint Poor Advertisement Lack of advanced Technology Less sales promotion Narrow product line Poor marketing Strategy Backdated Accounting System High average cost of production Time consuming product screening and packaging department Allocative Inefficiency of Resources.
Internal
(attributes of the system)
Opportunities
Unused Land for expansion Increasing demand in local and international market Automated machines to increase productivity Increasing buyers purchasing power Massive Distribution in different geographical areas Expand Product Line Less trade restriction in foreign market Buy more 20 machines in next 18 month to increase production Expand export to more countries Investing in different sector
Threats
Government Intervention Political Instability Increasing Tax rates Corrupted legal and law enforcement Exchange rate fluctuation Inflation Increasing Price of Oil Major Competitors taking away skilled worker by paying higher wages New Entrant using cheaper material and selling low quality product at a low price Complicated port system Rise is sale of competitors products Workers Strike Fall in exports for recession
External
(attributes of the environment)
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Top Level Management Managing Director(Md Moktar Hossain) Business Advisor(Hazi Mezbauddin) Director(Masud Ahmed) Director(Mainuddin Pappu)
Middle Level Management General Manager(Abdul Hakim) Finance Manager Accounts Manager Marketing Manager Distribution Manager Front Line (Supervisory Level Management) Factory Manager(Md.Abdur Rauf Chowdhury) Sr. Factory Supervisor(Forhad Hossain) Other Production Departmental Supervisors
The top level management takes the crucial decision of the business and is involved in Strategic Planning. The middle level management are assigned by the top level management to carry out the tactical planning. The front line (supervisory level) management usually deals with daily operational activities using their technical skills and is well guided by the top level and middle level management in carrying out the task effectively.
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4.6 Production
Production Equipment:
There are 20 production machines (18 of them each weigh 150 tons and the other 2 weigh 200 ton) and the total machinery costs 5.5 cores BDT when bought in the year 2003 from Taiwan. The major raw materials are moulding power, shining powder and paper mainly imported from China, Thailand and Taiwan. There are 2 heating machines as well to heat the designed papers which are finally pasted on the semi finished products.
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Production Capacity:
The factory consists of approximately 400 workers, employed in different departments producing a range of high quality melamine dinnerware and crockery. The factory runs in 3 shifts, 8 hours per shift. Therefore each worker has to work only 8 hours per day. The workers ratio with respect to females to male is 5:2. Daily the accumulated production of the variety of dinnerware and crockery is approximately about 10,000 to 12,000 pieces of products.
Production process:
However in the Growth Stage, Diamond Melamine Pvt. Ltd is facing a dilemma between higher market share and higher profit margin. Higher expenses due to massive distribution ,advertising and providing better quality products has led to sacrificing profit in the short run but improvement in market share in the long can overcome profit shortage in the next stage of the product life cycle.
Source: Armstrong, G., & Kotler, P. (2007). Principles of Marketing (12th Edition)
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Annual Turnover
60 50 50 40 30 Annual Turnover 20 10 5 0 Initial Year 2008 2009 56
Mr. Moktar Hossain is not only following economic responsibilities and legal responsibilities but follows high ethical standards and also contributes remarkably by carrying out philanthropic responsibilities for social welfare of the people and community at large. He has established a
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Mosque adjacent to the factory premises for the employees and the local community. This massive contribution will serve the community for a longer period of time and thus it can be termed as a strategic philanthropy of Diamond Melamine. Moreover he follows corporate social philanthropy such as organizing and sponsoring sports event. Recently Mr. Moktar Hossain has sponsored the first national rugby competition and contributed 60% of the total tournaments budget. All thanks to Mr. Moktar Hossain for creating to such a tremendous opportunity to promote the youth of Bangladesh towards a better future. Mr. Moktar Hossain believes in welfare maximization and therefore Diamond Melamine Pvt. Ltd fits perfectly and completes the 4 parts of Archie Carolls CSR Model.
Philanthropic Responsibilities
Ethical Responsibilities Legal Responsibilities Economic Responsibilities
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Power failure and availability of electricity is a major problem in Bangladesh for which the company has established its own backup power generator to provide the electricity double the capacity of what is generally required for running the production. This system of power generation was set up keeping the future expansion of the factory into consideration.
The company manages the jamming of shipments in the port by employing manager who handles the custom regulation during imports of raw material and exports of finished products.
The company has covered insurance for all its assets as well as for the products that are distributed and exported locally and internationally before it reaches the final agents and buyers. Unnecessary obstacle in production process by intervention of workers has been tackled very effectively by Mr. Moktar Hossain s senior factory supervisor who listen to all his subordinates but does not act as a formal union leader. All the views are taken from the workers and worker strikes and conflicts do not take place.
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5. CONCLUSION
5.1 Comment on the Business and the Entrepreneur
Diamond Melamine already established pronounced beliefs of its customers and progressing forward to build greater brand loyalty. Melamine industry has shown tremendous growth and modernization, keeping pace with overall economic growth. The increase in middle-class consumers and changes in consumption patterns gave Diamond Melamine huge opportunity to reach the level where it stands today. The company has a strong hold in the Bangladeshi market and also has a huge potential to capture the international Melamine dinnerware and crockery market. The heart and soul of Diamond Melamine is Mr. Moktar Hossain, whose relentless hard work and dedication made his business the second largest Melamine crockery producing company in Bangladesh. Starting from a nil position, in extreme poverty he had a lot of struggle and ups and downs. But his never ending enthusiasm and exemplary level of strong determination has led him to such a position which an ordinary Bangladeshi can only dream about. He reached the pillar of success with entirely is own efforts and has managed to win over every challenge required to be a successful entrepreneur. Md. Moktar Hossain has managed his business in very organized manner and his versatile entrepreneurship skills are praise worthy.
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The scheduling in Diamond Melamine is not that complex, therefore Diamond Melanie has huge work-in process on hand. Diamond Melamine should implement more complex scheduling to reduce work-in process and increase efficiency.
In the Production Department, Diamond Melamine is using semi-automatic machine that is perfectly all right with the limited budget. However if Diamond Melamine could increase their budget they could have easily switched to fully automated machine, thus their production cost would have gone down and it would also be more efficient.
In the Screening Department, there is a bottleneck. Since this department is purely labor intensive it takes a lot of time for the product to pass through this department. Diamond Melamine should improve the department by installing machine that automatically check for any defects and reject. Using the machine would give more accuracy and it is less time consuming.
We observed that there is a huge scope to increase productivity. For this Diamond Melamine Pvt. Ltd should follow the strategy of modern day Scientific Management that was developed by Frederick Taylor (father of scientific management) and was a major success for every company who adopted the his principle starting from the early 1900s.Diamond Melamine should therefore conduct the TIME MOTION STUDY. From our close observation we have noticed that the toilet distance for workers are far from the main production departments, also shifting of the semi- finished products from one department to other is time consuming. Improvement in these factors will surely increase efficiency and productivity.
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6. REFERENCES
Armstrong, G., & Kotler, P. (2007). Principles of Marketing (12th Edition) (Principles of Marketing) (12 edition.). Alexandria, VA: Prentice Hall. Crane, A., & Matten, D. (2007). Business Ethics (2 edition.). New York: Oxford University Press, USA. Diamond Melamine Industries (Pvt.) Ltd. (n.d.). Diamond Melamine Industries (Pvt.) Ltd. Retrieved April 7, 2010, from http://diamondmelamine.com/index.html McHugh, J., & Nickels, S. M. (2008). Understanding Business 8th Edition. New York: The McGraw Hill Companies,Inc. Methods, t. S. (n.d.). Free SWOT analysis template. SWOT Methods. Retrieved April 7, 2010, from http://www.businessballs.com/swotanalysisfreetemplate.htm Product Life Cycle model Tom Spencer consulting blog. (n.d.). Tom Spencer consulting blog An evolving perspective on management consulting, business strategy and investing. Retrieved April 7, 2010, from http://www.tomspencer.com.au/2009/01/25/productlife-cycle-model/ Strategic Management Report. (n.d.). Scribd. Retrieved April 7, 2010, from http://www.scribd.com/doc/20813898/Strategic-Management-Report Bangladesh Rugby Association. (n.d.). Bangladesh Rugby Association. Retrieved April 7, 2010, from http://www.bangladeshrugby.com/tournament.php
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