Mgt210 Shh 2016 akhtar furnishers PDF

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Summary

Assignment...

Description

AKHTER FURNISHERS LTD.

Prepare for

Prepared by

MGT210.10

Name

ID

Fall 2016

Prity Rahman

1421130030

Faculty name: Shahid Hossain

Nabila Haider

1620019030

NORTH SOUTH UNIVERSITY

Chowdhury Tanvir Ishrak

1330655630

Redwan Ahmed

1611134630

Meher Anjum

1430400630

Ashifur Rahman Sezan

1611352630

Letter of Acknowledgement: December 6th, 2016 To, Mr. Shahid Hossain Senior Lecturer, Department of Management, (SBE) North South University Dhaka, Bangladesh Subject: Submission of term paper on Akhtar Group Limited for Management 210 course. Dear Sir, This report is an accumulation of many people’s endeavor. But at the beginning we would like to convey our sincere appreciation to the Almighty Allah for giving us the strength & the ability to finish the task within the planned time. Then we would like to express our sincere gratitudes to everyone who contributed towards preparing & making this study successfully. First of all we would like to express our sincere & immense gratitude to Md. Abdul Mannan Khan, Assistant General Manager, Human Resource, Akhtar Furnishers Limited. We are deeply indebted to his wholehearted support to us during the term paper preparations. His valuable suggestions & guideline helped us a lot to prepare the report in a well-organized manner. We would also like to thank the authority of Akhtar Furnishers Limited for giving us the opportunity to visit their well renowned organization and supplying us necessary information and published papers and in special recognition. We are also grateful to the other officials at Akhtar Furnishers Limited who helped us while preparing the report by giving their suggestions, assistance & supply of information, which were valuable to us. Group members

Prity Rahman Nabila Haider Chowdhury Tanvir Ishrak Ridwan Ahmed Meher Anjum Asifur Rahman Sezan

Signatures

Table of Contents

Mission:....................................................................................................................4 Vision:.......................................................................................................................4 Slogan:......................................................................................................................4 Executive Summary:...............................................................................................5 Officers of the company:.........................................................................................7 Situation analysis:....................................................................................................8 SOWT analysis:.....................................................................................................12 Objectives of the firm:...........................................................................................16 Management Issues:..............................................................................................17 Conclusion:.............................................................................................................20

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Mission: The mission of Akhtar Furnishers Limited is vastly customer oriented. They impose brilliant supervision and research for giving their customer the premium comfort. Their mission is to design and produce well designed furniture that bring quality for the joy and faithfulness of partners. And also to create quality furniture with enhanced stylish outlooks at a reasonable price for capturing consumer loyalty.

Vision: To be a world class company with innovation and commitment. To be the most trusted & respected business conglomerate in the country. (http://www.akhtargroup.com.bd).

Slogan: “It’s not just furniture, it’s a lifestyle” (http://www.akhtargroup.com.bd).

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Executive Summary: The Brand name of the company is AKHTAR group, which is one of the leading conglomerates in Bangladesh. It is a furniture composite organization at the very beginning. The group formed or started in 2001. The philosophy of the group is to nurture and promote good ideas and growth to provide satisfaction to customers to innovate and go beyond accepted standards of doing business. K.M.Akhtaruzzaman is the owner and founder Chairman of Akhtar Group. He began his business with Akhtar Furnishers Ltd in 1976, which is the top manufacturer of wooden furniture in Bangladesh today. He built Akhtar Foam Industries Ltd in 2008 with the vision to deliver better quality foam products to Bangladesh. With his vibrant leadership in the corporate environment and extraordinary service to the economy, he accomplished the position of as Commercially Important Person (CIP) by the Government of Bangladesh (GOB). Under Akhtar group they have total 15 concerns. Their mother concern is: Akhtar Furnishers Ltd. It is known as furnishers rather than furniture because they provide complete interior solutions. They have their own architects and designers. They focus more on healthy living, elegant decorations, fashion and trends. And their sister concerns are: Akhtar Constructions Ltd, Akhtar Foam Industries Ltd, Jat Holdings Bangladesh Ltd, Thai Bangla Tools Ltd, Akhtar Mattress Industries Ltd, Akhtar Polymer Industries Ltd, Akhtar Board Industries Ltd, Sanafir Fashions Ltd, Akhtar Multimedia Ltd, Akhtar Door Industries Ltd, Trust Builders Ltd, Zaman Enterprise, Akhtar Real Estate Ltd. They have played a role successfully in expanding and branching out the business activities of Akhtar group in various sectors, which contains furnishers, polymer, foam, mattress, chemical, board and property development and industrial establishments. The projects are diversified across Bangladesh and giving the company an immense response and recognition. They have achieved different honors and awards throughout their journey. They have achieved 42National and International Awards too. (Business Award, SME Fair Award, DITF Award & Trade Fair Award from Home and Abroad). The total area of the company they own is about 250 acre. They have 14 showrooms in total throughout the country. They are the first to introduce and provide office furniture in Bangladesh. Since 1976; Akhtar Furnishers Ltd. strives for their designs to reflect customer taste and needs as well. Akhtar Furnishers Ltd. has fundamental standards like ensuring top-notch quality, sincerity in delivering service, and commitment to group work, professionalism and integrity. The 140,000 square feet manufacturing plant is equipped with modern and sophisticated technology and production facilities. They usually invest a lot of money on automatic wood seasoning and chemical plant and ensure the resale value of the wood and furniture. They have grabbed and covered 75% market shares of Jat Holdings, which is about lacquer painting. It is a Joint venture company between Sri Lanka and Bangladesh. Akhtar group mainly focuses target audience, elite and few customers from niche market. Their main motto is creating world-class products with high-class quality. They also invest on the autistics and disabled people. They give practical trainings based on furniture,

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which is known as SWISS contact. The total employers work here are about 3000 people. Their operating costs including salary, constructions and Infra-structure development is more than 2 cores every month. They are also planning their new office site in Vatarah, Sulmaid. Corporate social responsibility (CSR) of Akhtar group aims to increase long-term profits and shareholder’s trust through positive public relations and high moral benchmarks to lessen business and legitimate hazard by assuming liability for corporate activities. CSR strategies of Akhtar group encourages the company to make a positive impact on the environment and stakeholders including consumers, employees, investors, communities, and others.

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Officers of the company: Top Officer

Rank

K.M.Akhtaruzzaman

CHAIRMAN

Dato’ K.M.Rifatuzzman

MANAGING DIRECTOR

Sharmin Akhtar

DIRECTOR

Shaznin Parveen Khan

DIRECTOR

Irin Akhtar

DIRECTOR

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Organogram of the company:

Situation analysis: External Factors: These are the outside influence that can impact a company’s ability to function. It also impacts the ability of a business to achieve its strategic goals and objectives. There are some external factors of AKHTER FURNISHERS Ltd. given bellow:-

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#Customers: A customer is an individual or business that buys the products or administrations created by a business. Customer satisfaction is a marketing term that deals with how products or services supplied by an organization meet or surpass a customer's expectancy. Customer satisfaction is important because it offers marketers and business owners with a metric that they can use to achieve or improve their businesses. AKHTER FURNISHERS Ltd., doesn’t want to stick with regular product. They keep updating their items according to market demand, client expectations and perception and also keep their products in a sensible price that helps them to create a good relationship with their clients. Market research is used to determine the effectiveness of marketing massages and to decide what changes can be made to future marketing programs to improve sales. #Competitors: The achievement and behavior of any business will be relaying upon the degree of competition in its market. Intertype competition is competition among the firms in the same line of business. When two or more firms that are in the same line of business and compete against each other is known as intertype competition. This type of competition is to capture the share of market. Such competitors are: Hatil, Brothers Furniture, Partex, Regal, Otobi and Navana. #Suppliers: Every organization needs inputs such as raw materials, service, energy, equipment, and labor forces. These parties provide such type of input to the organization is called suppliers. AKHTER FURNISHERS Ltd. is also depended on suppliers of materials and they try to take advantage of competition among the suppliers to gain lower price, better quality work and faster deliveries. #Laws: Law is the arrangement of standards which a specific nation or group perceives as directing the

activities of its individuals and which it might authorize by the inconvenience of punishments. AKHTER FURNISHERS Ltd. has some legal system, new laws, rules and regulations which are constantly added due to the political or social changes. All the employees in the organization have to maintain it. #Culture: Culture determines what is acceptable or unacceptable, important or unimportant, right or wrong, workable or unworkable. It encompasses all learned and shared explicit or tacit, assumptions, beliefs, knowledge, norms and values as well as attitudes, behavior, dress and language.

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AKHTER FURNISHERS Ltd. always has given importance to culture as it is a key component in business. It has an impact on the strategic direction of business. As it gives a vision of working style, beliefs and habits of the customers so that they can produce their products according to the values of customer choice. #Technology: Technology is a broad concept that has come to refer to breakthrough in science that allow for better or automated solution. AKHTER FURNISHERS Ltd. is a large manufacturing company. They have lots of employees and workers working in their organization. Now they are exporting products to aboard to enlarge their business. As the demand of the product has been increased and they have to provide them on time so that they are using advance technologies and also using internet, social network and other communication technologies to operate the business work in the organization.

Internal Factors: It is the inner strength and weakness that an organization exhibits. Internal factors can strongly affect how well a company meets its objectives and they might be weakness if they have a harmful effect on business. There are some internal factors of AKHTER FURNISHERS Ltd. is given bellow:#Level of management: Like any other business organization, AKHTER FURNISHERS Ltd. operates through 3 levels of management: Operational, Technical & Strategic management Strategic (Top level Management): It is includes group of crucial persons essential for leading and directing the efforts of other people. Top-level management consists of Chairman, Board of Directors, Managing Director, General Manager, President, Vice President, Chief Executive Officer (C.E.O.), Chief Financial Officer (C.F.O.) and Chief Operating Officer etc.

Technical (Middle Level Management): People of this group are responsible for executing the plans and politics made by the top-level management. This level of management consists of departmental heads such as purchase

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department head, sales department head, finance manager, marketing manager, executive officer, plant superintendent, etc. Operational (Lower Level Management): Managers of this group actually carry on the work or perform the activities according to the plans of top and middle level management. This level consist of supervisors, superintendent, foreman, sub-department executives; clerk, etc. #Skills of managers: It is the practice of understanding, developing people and their skills. Managers of the organization have the ability to work with people, communicate and understand them. They narrowly focused in the particular area and technically make an improvement in the certain field. Here they have to show their ability to deal with the complexities of life by seeing the big picture in front of them and solve it as soon as possible. #Roles of managers: Managers play a number of roles in evolving organization, including leader, negotiator, figurehead, liaison and communicator. They have to talk with their employees about their problems, solve them and also have to motivate them. They connect their organization with outsiders, collect information and give away that to their employees to make an improvement. They also allocate the resources and lead the organization towards their goal.

SOWT analysis: SWOT analysis is an abbreviation for strengths, weaknesses, opportunities, and threats. It can be defined as an prearranged planning method that processes these four elements of a business. A SWOT analysis can be completed for an organization, item, place, industry, or individual. It involves classifying the objective of the business venture and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. Here is a SWOT Analysis we made from the market information of AKHTER FURNISHERS Ltd.

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S     

Relationship with distributors Financial support Excellent staffs Competitive price Innovation

W 

Depending on foreign suppliers



Lack of good control.



Cost management.



Technical workers



Advertisement

O    

Global market Market leader New customers Convenient location

T    

Competitors Production drought Raw material unavailability Natural disaster

STRENGTH: 1. Relationship with distributors and suppliers: The company maintains a strong relationship with its suppliers and distributors. It is very important for an organization to maintain a healthy relationship with its suppliers and distributors because their production vastly depends on the raw materials provided by the supplier and the distributors help an organization to reach their products to the customers’ doorstep. 2. Excellent staffs: Akhtar Furnishers Limited have well trained and experienced staffs that focus on cultivating productivity and effectiveness. They are confident and ambitious, they take

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down challenges that others shy away from. They are detail oriented, forthright and honest. They also have Excellency of handling sales with strong knowledge of current products. 3. Competitive price: Though competitive pricing means narrowing down the profit margin and which also makes the company vulnerable to the cost rise, the company maintains its product quality as per its accepted price. Their price is very competitive in comparison to otobi, hatil and related other furniture companies. 4. Innovation: Innovation is the advancement of current state. It is needed for a company to continue success. Being zealous and feeling the urgency of making innovation is a strategic lever to effect business growth. The strongest part of Akhtar furnishers is its inventing of new product idea and new design. All of which aims towards improving customer flexibility and satisfaction. 5. Financial support : Nobody knows when the unexpected comes. As Akhtar is a big group of companies, they have to have a strong financial support as a part of organizational caution. The stockholders, the stakeholders are the major contributors of this firm. They are also financially backed up by private banks. They also have arrangements with insurance company.

Weakness: 1. Understanding of niche market: A niche market is a subset of the main market where a particular product is concentrated. Such products satisfies specific market needs. AFL has not seemed to understand the niche market, where to find the buyers, how to segment the market as a specially niche instead of the more traditional furniture channels. 2. Relying on Imported raw materials: For producing the best quality product AFL imports their raw material from abroad which causes vast dependency. The company heavily relies on imported raw materials for its

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production. Any issues that may fail delivery of raw materials can halt production and can cause huge amount of loss. They have to reduce the dependency. 3. Cost management: Cost management is the process of controlling the assets and liabilities of an organization. It is the basic as well as most challenging task of project manager. The company has too much stock in inventory and higher inventory costs. The management team, controlling this section is working their heart and soul to overcome this issue

4. Technical workers: A technical worker is skilled in relevant field and works with great proficiency. They can complete a job using their extra ordinary efficiency. Due to huge job opportunity, technical workers are simultaneously changing their jobs for the payment maximization. And thus the company is losing lots of technical workers.

Opportunity: 1. Global market: The well recognition of Akhtar Furnishers Limited has the possibility to create opportunity of penetration into global market. There is huge possibility of gaining international market share by exporting their well-furnished products. The goal is to supply to international markets. This will further upturn the scale of production and size of company growth rate, and thus they can increase their profit even more. 2. Market leader: A market leader dominates its competitor in customer loyalty, pricing and distribution. AFL is doing a great job at producing and distributing their products. If they maintain their good quality production for 2/3 years, they can be number one furnisher company in Bangladesh. And thus can lead the market. 3. New customers: By understanding target audience, focusing on new sales lead and generating more revenue from existing client can bring in new customers. The demand for classy furniture is increasing day by day. People are losing interest in handcrafted furniture. By proper advertisement and promotion they can conquer this goal. 4. Convenient location: Location is t...