strategic management report

Exotica Melamine Ware

1. Executive Summary

The melamine product manufacturing sector is still in its growth stage. However, the concept of

manufacturing melamine products aims to reach current target group as well as higher middle class

people, corporate sector and exporting internationally. That is why the crucial task of creating the

appropriate culture and educating the customers about the quality and design of our products will be the

top priority of our business. We will differentiate our product by ensuring improved quality than the

market is serving now but at a lower cost because of our new technology at the price that market is

charging. Again, we will come with unique and attractive design and some sort of customization to grab

the higher middle class people, corporate sector and exporting.

The land for establishing the factory is owned by the partners will be leased. All the other requirements

like machine and others will be purchased by the business. However, political instability, local intruders,

inexperienced employees and customers, unawareness about the manufacturing firm of melamine

products would play a crucial role to defy the whole venture. Nevertheless, with rigorous direct selling

and advertisement, a culture towards using melamine products and awareness building will be done. As a

manufacturing firm, Exotica Melamine needs to create a strong, pro-active and effective human resource

base.

As the long term strategy, Exotica Melamine Ware visualizes to be a global brand. As the initial setup

cost is not huge in amount, so we forecasted to reach to break even within less than five years. It will be

easier for the firm to reach the customer easily as we will provide distinctive products at market price.

Along with this, the eventual employee experience, brand name and uniqueness of the product will help

the company in gain economies of scale through experience curve. Eventually, we hope that Exotica

Melamine Ware will be a distinctive manufacturing firm to provide people products with quality, unique

design, affordability and reliability.

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2.2. Team ProfileTeam Profile

Sayba Kamal Athoi

061-479-030

Managing Director

Nibras Yaman

053-159-530

Chief Executive officer

Rehan Muhammad

053-368-030

General Manager

Mosharraf Hossain Saikat

053-141-030

Chief FinancialOfficer

Afsana Jahan

061-478-030

Head of Human Resource

M. Aminul Islam

053-413-030

Head of Marketing

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3. Company Overview

Exotica Melamine Ware is going to produce different kinds of melamine products to add

divergence to the customers’ dining table. It will be a partnership based company, formed by six

individuals having equal share each. Each of the partners of the company will be addressing a

managerial role in the organization and will be working as a team to take any sorts of decision

regarding the execution and development of the company.

We as entrepreneurs see immense opportunity in this sector. Because Melamine Industry is a

growing industry and it has a lot of export opportunities so we entrepreneurs are hopeful about

the success of EXOTICA MELAMINE WARE.

Initially Exotica Melamine Ware will start with 5 machineries and about 50 human resources in

Keraniganj near Dhaka. The company will start its operation with 25 crockery models. Our

product will be the best in melamine industry in Bangladesh. Our company will achieve a

tremendous success in respect of sales amount and market share within a very short time due to

its product quality and competitive price.

3.1 Mission Statement

We, the new generation of melamine producers, will focus on premium quality melamine

products with innovative style and design.

3.2 Vision Statement

Establishing a world wide brand Image by reintroducing Bangladeshi Melamine products in the

Global Market.

3.3 Key products

Different types of melamine cookeries.

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3.4 Strategic goals and objectives

1. We are targeting to capture 10% market share within the first five years of our operation.

2. Our target is to increase our turnover by 15% in the second year, 20% in the third year and

25% in the fourth and fifth year.

3. We want to export our products from the second year of our operation.

4. We want to provide high quality products with a competitive price.

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4. Industry Overview and Analysis

Melamine Industry is one of the many topics that did not get enough attention for research in

Bangladesh. Over and over again many big news papers and analyst has pointed out the

melamine in industry has huge potential in export sector. The industry overview analysis will

clarify the overall environment for this business so that an informed strategy can be put into

action. As our vision statement is to create a Global Brand the Bangladeshi Melamine Industries

competitiveness should be critically analyzed.

Bangladesh's melamine industry has carved a niche in the international market, having started its

journey only 15 years ago, alongside feeding domestic tableware market. The country went into

melamine production in 1989 when Nasir Group's Bangladesh Melamine ventured into the

business. The industry got major boost in the following year with Sharif Melamine coming in a

big way. Inspired by rising domestic and international demand, 13 other companies joined the

melamine bandwagon, creating a Tk 120 crore domestic market. Industry insiders say use of

high-tech machine and quality melamine resin and adoption of latest design have given

Bangladeshi melamine tableware a competitive edge on regional and international markets.

(http://www.bangladesh-web.com/view.php?hidRecord=26516)

Fig: Standing of the melamine industry in Bangladesh

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Melamine Industry

Total Market

http://www.bangladesh-web.com/view.php?hidRecord=26516


The Industry Over will be done in the following four components

Existing Melamine Companies:

Sharif Melamine Industries

Diamond Melamine Industries (PVT) Ltd.

United Melamine Industry

Classic Melamine Industries Ltd.

Crown Melamine Industries Ltd.

Bangladesh Melamine Industry Ltd.

G.Q. Marketing Ltd.

Gold Star Melamine Industries (PVT) Ltd.

Nasir Group of Melamine Industry

Sunrise Agencies

(http://www.bdyellowbook.com/catalog/Mills___Industries/Melamine_Industries/)

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http://www.bdyellowbook.com/catalog/Mills___Industries/Melamine_Industries/


4.1 Five Forces Model:

Michael Porter's famous Five Forces of Competitive Position model provides a simple

perspective for assessing and analyzing the competitive strength and position of a corporation or

business organization. The following figure gives an overview of the Model.

www.businessballs.com.

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Porter’s Five Forces of Competitive Position

Competitive Rivalry, eg:

number and size of firms industry size and trends fixed v variable cost

bases product/service ranges differentiation, strategy

Supplier Power, eg:

brand reputation geographical

coverage product/service level

quality relationships with

customers bidding

processes/capabilitie

Product and Technology Development, eg:

alternatives price/quality market distribution

changes fashion and trends legislative effects

Buyer Power, eg:

buyer choice buyers

size/number change

cost/frequency product/service

importance volumes, JIT

scheduling

New Market Entrants, eg:

entry ease/barriers geographical factors incumbents resistance new entrant strategy routes to market

http://www.businessballs.com/


New Market Entrants: As already outlined the industry has something around 13

companies that are functioning in the melamine sector. However, among them Diamond

Melamine, Bangladesh Melamine, Crown Melamine, Sharif Melamine are the major

players. The industry is mainly saturated with these players. The industry does not have

any complicated legal restrictions of entering as a result barrier to entry is not limited. A

company wishing to open up in this industry can just following legal rules of the

registration as a Limited Company and start its operation. As the company does not

produce any significant amount of water or air pollution so treatment plant is also not

necessary. So entry to this industry will be easy. In the front line of the industry are

mainly the Sharif Melamine and Diamond Melamine who differentiates their price

compared to the other players by positioning superior quality. As a New entrant to this

industry Exotica Melamine Ware should position themselves as high quality with

unique tasteful design. This is the route we wish to take.

Supplier Power: Supplies for the industry comes mainly from Taiwan, Thailand, China

and locally made raw materials. However, only Sharif and Diamond Melamine produces

products with better quality than others thus they use Taiwan raw materials which

obviously increases their product cost. There are also some small melamine companies

that uses locally produced raw materials which make the product quality poor also

durability of the product also decreases. The companies in the industry can easily switch

from one supplier to the other therefore switching cost is low. Though supplier can

threaten to entre the market however most of the suppliers are from outside Bangladesh

so initially it won’t be a threat to us as we hope to capture local market then the

international market. Overall the suppliers bargaining power is lot as companies can

switch to different supplier

Buyer Power: The industry’s supply is divided into two segments one the corporate

clients that is there are many restaurants and organization that order the Melamine

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company to supply their products with the name of those restaurants printed on the

product. These orders are usually quite large thus the corporate buyers have bargaining

power. That is since they buy in bulk so they can easily bargain for price. The segment of

the industry consists of mass customer who buy the product from the retail outlet thus the

buyer does not have enough bargaining power because buyers are not few. The switching

cost is though low but there is certain mark up of the product below no company will sale

and the price of the product is usually fixed and kept at that level. So two different

segments have different level of buyer bargaining power. However, both the segment

cannot threaten to enter the market because setting up cost is high enough.

Product and Technology Development: The market has significant scope for product

development as the market in Bangladesh has been there for the last 13 years the

population of Bangladesh is experiencing a change in taste and design so it is high time

that the design and quality of the existing melamine products can be changed and thus

this can be used to capture the urban middle class. The technology used in the production

can also be developed so make the products more durable, better looking, and superior to

the ceramic products that is the substitute of melamine products. The designs can be

significantly changed to incorporate high class look and also cookeries for children can

be added. There is huge scope in this sector for product development.

4.2 Core Competencies

Core competencies are those capabilities that are critical to a business achieving competitive

advantage. The starting point for analyzing core competencies is recognizing that competition

between businesses is as much a race for competence mastery as it is for market position and

market power. Senior management cannot focus on all activities of a business and the

competencies required undertaking them. So the goal is for management to focus attention on

competencies that really affect competitive advantage.

(http://tutor2u.net/business/strategy/core_competencies.htm)

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http://tutor2u.net/business/strategy/core_competencies.htm


Prahalad and Hamel suggest three factors to help identify core competencies in any business:

What does the Core

Competence

Achieve?

Comments / Examples

Provides potential

access to a wide

variety of markets

The key core competencies here are those that enable the creation of

new products and services.

Since our product design is unique and we have a higher quality we

hope to target the local urban middle class and then the international.

As given in our Vision we want to create a brand that is known

globally. The durability, better quality and unique design is our

positioning and thus this gives us our first core competencies to

capture the market.

We will use our domestic plant as a production base for exporting

goods to foreign markets. Initially we will export to India and Bhutan

from the second year of our production. It will minimize both risk and

capital requirements. We will enter the foreign market by contracting

with experienced foreign wholesalers to handle the distribution.

Makes a significant

contribution to the

perceived customer

benefits of the end

product

The fundamental customer benefit that we would provide is - Reliable

and efficient delivery infrastructure (product picking, distribution,

customer satisfaction handling). We will introduce products which are

very unique in design, appearance and features. Our pattern designs

are combined beauty, elegance, usability and durability .Our products

will have the appearance of the ceramics products but with much

better features: bright color, non-toxic material, no smell, endurable of

acid, not get fragile easily, can be applied for the dishwashers. We will

bring in many different types of models with unique shape that are

widely used by families, restaurants and hotels all over Bangladesh

and abroad. Therefore we will follow a differentiation strategy.

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We will try to improve our supply chain efficiency on a continuous

basis. We will collaborate with our suppliers to design new products

and to reduce the time it takes to get new products into the production.

We will make tight collaboration with our distribution channel

partners to wring out distribution cost savings.

We will set up complaint box and suggestion box in each show rooms.

A red box will be placing for taking complains and white box will be

placing for taking suggestions.. All complain will go to the Six Sigma

team of EMW. The problems will be sorted out as early as possible.

Difficult for

competitors to

imitate

A core competence should be "competitively unique": In many

industries, most skills can be considered a prerequisite for

participation and do not provide any significant competitor

differentiation. To qualify as "core", a competence should be

something that other competitors wish they had within their own

business.

Core competencies that are difficult for the competition to imitate:

- Minimization of working capital in the production process

- High manufacturing and distribution quality - reliable products at

competitive prices

- Strong human resource base

-Strong ethical code of conducts

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4.3 Industries SWOT

Strengths:

The company’s strength lies in authority product, better cost control, stiff control of management

over its all activities. To ensure better quality product the company uses best quality raw

materials, highly skilled work force and to motivate workers. Diamond melamine industry use

performance evaluation system. There is a reward system for the out standing performer, in term

of promotion and increased pay which motivates worker to be work efficient and productive.

Where as the company has lowest wastage rate in the industry and high production rate per

employee.

Weakness:

The weakness faced by the company is consecutive effects from its budget constraints. Due to

unavailability of funds, the company is not able to expand its current production facilities, excess

to proper distribution channel, advanced technology and finally promotion to its products, which

is holding the company back to achieve economies of scale and greater market share.

Opportunities:

Better activity products, efficient management creates goodwill for the company in the market,

as we mentioned earlier. The demographic and general economic of the country gives the

company the opportunity to expand. Moreover the liberalization trade policy gives the company

an opportunity to expand internationally. Company’s goodwill helps it to get loan facilities from

the financial institution.

Threats:

It mainly comes from new entrants, pressure from political parties, weak and corrupted legal and

law enforcement structure in Bangladesh, inefficient port management, rising price of oil,

inflation, exchange rate fluctuation and lack of policy continuity from government part. The new

entrains are posing serious trouble for the company both internally and externally. Most of the

new entrants are using low quality raw materials from China, selling them at a much lower price

and they are taking out the experienced workers by offering high wages and salaries. Hartal,

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strike, bribe, container jamming in port, inflation and other raise the cost of production by 20%

more.

TOWS Matrix:

Internal factors

External factors

Internal strength: quality

product, cost control& efficient

management control.

Internal weakness: budget

constraints, lack of advanced

technology& lack of proper

distribution channel.

External opportunities:

domestic expansion,

international expansion,

goodwill, access to

borrowings.

SO strategy: maxi-maxi

Take borrowing to expand

production facility to capture the

larger market share

domestically& internationally

with strict internal control for

interval strength.

WO strategy : mini-maxi

To limit the budget constraints

company should use borrowing as well

as sources of financing, convenient to it

to mature the opportunity it has.

External threats :

Competition, political

instability, macro economic

instability, law& order and

corruption.

ST strategy: maxi-mini

By strengthening the internal

strength through by continuous

improvement. The company

should minimize the threats poses

from external environment.

Overtime production, distribution

at night at hartal period reducing

the effect of flying cost by proper

WT strategy: mini-mini

If the company can increase its budget then

it almost can reduce its internal weakness.

The threats from external environment are

mostly uncontrollable by the company; to

be competitive it should be more efficient

in its production, distribution activities. On

the other hand to minimize the risk arises

from economic, political, law& order etc.

company should be aware of them & has to

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cost control. find out the way how it can best manage

the situation.

4.4 Competitive Advantage

A competitive advantage is an advantage over competitors gained by offering consumers greater

value, either by means of lower prices or by providing greater benefits and service that justifies

higher prices. (http://tutor2u.net/business/strategy/competitive_advantage.htm)

In order to achieve a superior profitability we wish position our product Exotica Melamine Ware,

as a symbol of quality and unique design. This can only be achieved by pursuing a

Differentiation strategy. By definition Differentiation Strategy is:

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http://tutor2u.net/business/strategy/competitive_advantage.htm


This strategy involves selecting one or more criteria used by buyers in a market - and then positioning the

business uniquely to meet those criteria. This strategy is usually associated with charging a premium

price for the product - often to reflect the higher production costs and extra value-added features provided

for the consumer. Differentiation is about charging a premium price that more than covers the additional

production costs, and about giving customers clear reasons to prefer the product over other, less

differentiated products.

(http://tutor2u.net/business/strategy/competitive_advantage.htm)

Here our selection of criteria is unique design and high quality which will justify our premium

price. No one company in the industry targets the higher income earners. Most companies like

Sharif, Crown targets the middle income group which rightfully reflects the product design,

quality even the marketing strategies. However we beg to differ in our product by following the

BEST COST STRUCTURE. The best cost structure is the combination of low cost strategy with

differentiation. We will produce competitively priced products that charge the same price as the

premium quality producers existing in the market however the look of the product will be

refreshing, attractive and tasteful. The core competences described above will help us to achieve

this Strategy. Since we are group of new generation melamine producers we know the total

quality management effectiveness in the production system. The efficiency level will rise.

Greater international correspondence will help us to attract the foreign market.

http://www.12manage.com/methods_porter_competitive_advantage.html

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5. Market Overview

5.1 Potential Customers

The nature of the industry, level of buyers, general economic conditions of Bangladesh and the nature of

the product don’t give the scope to any melamine company to adopt differentiated marketing strategies.

So the company will offer an undifferentiated product, but the target customer group will be the middle

income group to upper income group, those who can afford it. Our geographical target area in terms of

the domestic market will be the urban and sub-urban cities. Though the company is a consumer goods

producer, sometimes it will supplies products to business for their specific order such as SMC (social

marketing company), Hotel Radisson, and over hundreds of decorators including defense mess. Talking

about the foreign markets, we think our neighboring country India has a very strong customer base for our

products. So, we have planes to export our products to India through Bhutan. Exported items will be

produced according to the specification of importer country. The company will also produce customized

products for special orders comprising or more units. Customized product’s features will include

demanded logo, design, size and other such attributes.

5.2 Size and growth of the market

Melamine is not that huge in size yet in Bangladesh, but the growth rate is quite high as the number of

companies and scale of operation is increasing day by day. It replaces the traditional concept of crockery

ceramics, tin, glass etc. by offering affordable, quantity, durable & nice designed products. It got

popularity due to its affordable price and durable quantity. It is durable in a sense that it lasts for 10-12

years without any major damage. It gets popularity with in very short time; the growth of the industry was

so high that was completely unbelievable. It is partly because it positioned itself against high priced

crockery and partly against low priced crockery. As it is for middle class income people its market share

increased rapidly due to socioeconomic structure of our country. Today the total number of firms in this

industry is about 15 to 20; the number is not sure as no published data regarding the industry is available.

Melamine industry is a new concept for the cookeries in Bangladesh since 1987. Before that cookeries

means ceramics, tin made cookeries etc. The ceramic was costly in that sense. It is fragile. On the other

hand tin made cookeries are not standard in good outlook. As melamine combines the feature of

durability & good out look .It can captures the cookeries market rapidly. The demand of melamine

product is increasing day by day. Which creates an opportunities to expand the industry further .The

industry is now its growth stage. Melamine product is mainly for the middle class people. The

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demographic condition of Bangladesh comprises mainly middle class people and the GDP growth rate

over the year is increasing in a positive way, which gives the industry a greater prospective market. The

cheap labor cost of Bangladeshi labor gives the industry a competitive position over its international

competitors. In global market more over the liberalization of trade gives the industry an opportunity to

expand its market internationally.

5.3 Strategic Group Analysis

Strategic group Analysis is used to determine:

Different competitive positions of companies in the industry

Intensity of rivalry within and between groups

Profit potential of various groups

Implications of competitive position

Positioning Map

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Data presented in the figure has been taken from the results of a survey conducted by Diamond Melamine

Industry and our company is positioned based on our assumptions.

As it can be seen from the above included graph, among the five major competitors in the market, United

Melamine offers the product at the cheapest possible price, but the quality of their product is also lower

compared to others. Crown Melamine offers their products in a better quality, but charges a bit higher

price. The current industry leader, Sharif Melamine is able to charge the highest price for their products

due to their established brand name. Sharif Melamine’s closest competitor Diamond Melamine offers a

little better product, but charges a little lower price and they are gaining market share quickly. Now our

company is expected to offer products which are of the same quality as of Diamond Melamine’s, but we

will be offering our products at a little cheaper than them in order to have a competitive edge. Moreover,

our unique designs should give us an upper hand over all the established melamine companies.

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6. Overall Strategy

Exotica Melamine ware aimed at producing high quality product at a moderate price by using high quality

raw materials and efficient production technique. We will pursue a strategy of progress and innovation to

produce good quality, value for money melamine products.

6.1 Long term and short term strategy

Short term strategy

Minimizing cost We will try to reduce our cost by building efficient scale facilities, establishing tight

control of production and overhead cost, minimizing the cost of sales, products and

investing in the state of the art manufacturing technologies. (Open learning world

2007).

Flawless qualityFor ensuring continuous success and patronage of our clients, we, Exotica

Melamine Wares, have etched the philosophy of maintaining top-notch

quality in our working methodology. Keen attention is paid to major and

down to the minutest of the details in every process, thereby making it

possible for us to manufacture customized melamine crockery, unbreakable

melamine crockery, dinner sets, serving trays, bowls, gift sets, tableware, etc.

Only the best grades of raw materials are employed in the processes which

are sourced from authentic vendors of the market. With its superior quality

products and competitive prices, the company aims in maintaining a long-

lasting relationship with its clients.

Unique productsWe will introduce products which are very unique in design, appearance and

features. Our pattern designs are combined beauty, elegance, usability and

durability .Our products will have the appearance of the ceramics products

but with much better features: bright color, non-toxic material, no smell,

endurable of acid, not get fragile easily, can be applied for the dishwashers.

We will bring in many different types of models with unique shape that are

widely used by families, restaurants and hotels all over Bangladesh and

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abroad. Therefore we will follow a differentiation strategy.

Competing

Internationally Initially we will compete internationally. This will help us to gain new

customers and to achieve lower cost and enhance the firm’s competitiveness.

By entering the markets of foreign customers we will able to strengthen our

revenue base and long term growth.(Thomson and Strickland 2003)

Export strategiesWe will use our domestic plant as a production base for exporting goods to

foreign markets. Initially we will export to five countries. It will minimize

both risk and capital requirements. We will enter the foreign market by

contracting with experienced foreign wholesalers to handle the distribution.

Improving

supply chain

efficiency

We will try to improve our supply chain efficiency on a continuous basis. We

will collaborate with our suppliers to design new products and to reduce the

time it takes to get new products into the production (Thomson and

Strickland 2003).

Improving

distribution

channel

strategy

We will make tight collaboration with our distribution channel partners to

wring out distribution cost savings.

Increasing

customer

responsiveness

We will set up complaint box and suggestion box in each show room. A red box will

be placing for taking complains and white box will be placing for taking

suggestions.. All complain will go to the Six Sigma team of EMW. The problems will

be sorted out as early as possible.

Implementation

of codes of ethics

We will strictly follow the codes of ethics and will try to incorporate ourselves with

corporate philanthropies.

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Long term strategy

Best cost provider strategy: we will provide our customers more value for the money by

integrating good-to-excellent product attributes at a lower cost than our competitors (Thomson

and Strickland 2003). Our target is to achieve the lowest (best) cost and best prices compared to

rivals offering products with comparable upscale attributes.

TYPE OF COMPETITIVE ADVANTAGE

ADVANTAGE BEING PURSUED

Source: Adapted Michael E. Porter Competitive Strategy (New York Free Press, 1980), pp 35-40

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Overall Low Cost Leadership

Strategy

Broad Differentiation

Strategy

Focused Low Cost Strategy

Focused Differentiation

Strategy

Best – Cost Provider Strategy

Best – Cost Provider Strategy

Lower Cost Differentiation

A Broad Cross-Section of Buyers

A Narrow buyer

segment

Market

Target


By following Best Cost Provider Strategy we will able to incorporate following features for the

company:

Robust Infrastructure: A strong infrastructural setup aids in meeting the rigors of production

and marketing with perfect ease. Exotica Melamine Ware will have a superlative infrastructural

backup by way of hi-tech manufacturing facilities, a large warehouse and well built marketing as

well as research & development unit. Employing cutting edge strategies, we will successfully

manufactured premium quality crockery and other items, thus, fulfilling all of our business

objectives in the most comprehensive manner.

Competing Globally: We will try to become a global competitor. Although global competition

does not exist to a grater extent for melamine industry but we want to capture the market

opportunities wherever possible to become pioneer in delivering high quality melamine products.

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Value - conscious Buyers

Value - conscious Buyers

More value for the money

More value for the money

Good-to- excellent attributes several-to-

many upscale features depending on product

type

Good-to- excellent attributes several-to-

many upscale features depending on product

type

Incorporation of upscale features and attributes

at low cost

Incorporation of upscale features and attributes

at low cost

Match the price of rival and provide better features

Match the price of rival and provide better features

Build a reputation for delivering the

best value

Build a reputation for delivering the

best value

Develop unique expertise in

simultaneously managing costs down

Develop unique expertise in

simultaneously managing costs down


The reason behind competing globally is to capitalize on the core competencies and to spread the

business risk across a wider market base.

Incorporating internet technology in the supply chain and distribution channel: We will

incorporate internet technology to our supple and distribution channel. It will help us to

procuring raw materials from suppliers, reducing inventory requirements, expediting the design

and production of new components, and engaging in mutual beneficial collaboration with

suppliers. Internet technology will help the distribution proportion in two ways; (1) it will allows

us to bypass retailer/wholesale dealers and sell directly to end users and (2) to build a strong

collaboration with distribution channel members.

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7. Company value chain analysis and operational plan:

7.1 Existing core competencies:

Flawless quality Unique products Strong customer responsiveness

7.2 Future competencies:

Even if there are possible emergences of some new melamine businesses in future, we will

able to hold larger market shares because of some of our future competencies.

In Future, our company will be able to achieve superior efficiency through functional level

strategies like

Economies of ScaleEconomies of Scale:: According to our expansion plan, we will posses the ability to serve

a large number of variety customers to achieve greater division of labor and

specialization. Specialization among employees will lead us to provide superior quality

services to our customers.

Learning EffectsLearning Effects:: Learning by doing will help us to attain a lower cost structure; and,

over time, as we learn the most efficient ways to operate our business, there will be

further cost saving. Also, we will be able to develop a more trained and efficient labor

force in future. Thus, operating cost would decline because of increasing labor

productivity.

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Experience CurveExperience Curve:: If our company can pass some good years at the beginning in terms

of revenue, customer number, customer satisfaction etc, we will be the holder of large

market share. By expanding our business, we will be able to serve a large number of

customers and to hold a larger market share, which will lead to systematic lowering of

our cost structure compared to rivals.

Strategic Alliances and Expansion:Strategic Alliances and Expansion: opportunities with various techniques and future

expansion plans of our camping business to different places like United States of

America, Norway, Sweden, Russia, Finland, Kazakhstan, Kingdom of Saudi Arabia

Qatar, Oman, Abu Dhabi,, Dubai, India, Bhutan and Australia and Some other places will

give us the opportunity to differentiate our services and to charge a premium price.

7.3 Product and service overview:

Exotica melamine will produce export quality high class household crockery (dinnerware and

tableware) from melamine. Products made from melamine are extra durable (practically

unbreakable) and long lasting. Our products are shatterproof, dishwasher safe and also

microwave safe. There is no other plastic crockery in the market that has the highest scratch-

resistant than the melamine crockery. Exotica Tableware’s products combine strength and beauty

with marvelous design and are the very best choice for plastic tableware that stands up to

everyday use.

Exotica melamine product line: There are 48 melamine items that make up Exotica

Tableware’s product line.

The following shows the different types of items will produce at Exotica Tableware’s factory:

Soup Plate

Coup Plate

Dinner Plate

Rice Bowl

Serving Bowl

Soup Bowl

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Firni Bowl

Serving Tray with Handle

Serving Tray

Oval Tray

Cover Bowl

Tea Cup & Saucer

Glass/Cup

Mug

Big Rice Spoon

Curry Rice Spoon

Coup Spoon

Service Spoon

Salt Pot

7.4 Facilities:

Process Layout

Since the Exotica Melamine is following the Batch process, so that their facility layout will also

fall under the process layout. They have eight departments. The layout of the plant has been

designed in such a way so that all the manufacturing activity is under one roof such that the flow

of material processed at one stage automatically flows to a next stage of processing thereby

reducing manpower to handle the material from one place to another and avoid waiting time for

the next process.

The advantages of process layout:

The system can handle a variety of processing requirements

System are not particularly vulnerable to equipment failure

Equipment maintaining cost is lower

Possible to use individual systems

The departments for Exotica Melamine process layout are:

Stock Warehouse

Glue & Heating Department

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Cutting Department

Production Department

Grinding & Polishing

Sreening Department

Washing Department

Packing Department

Some physical layout of the departments is provided in the appendix section.

Stock Warehouse:

The raw materials the Exotica Melamine use are 1. melamine compound, 2. melamine shiner, 3.

printed tracing paper. Since the first two mateials are not readily available in the markaet so

Exotica Melamine has give the purchasing order in advance. it takes at least 3-4 weeks to

recived the goods after Exotica melamine made the purchaing order. Therefore Exoticamelamine

keeps ample amount of raw materials on hand so that if there is any sudden increse in demand

they donot run out of stock.

Glue & Heating depatment:

In this department glue is added to the tracing paper and the is dried using industrial elecric oven.

Cutting :

In this department the designed paper is cut into desired shaped and arranged together in such a

way so that it will be easier for next department. The Cutting department and the Glue & Heating

department is situated next to each other to achive efficiency.

Production Derparment:

In the production department all the compiling, compressing & heating are done to give the

product its shape & size. This is largest department and takes up most of the plant space. In this

department there 22 compressing machine so that multiple items can be made at a time. The raw

materials are inserted from one end and the finished product comes out from the other end. The

machines used in the production department are semi-automatic.

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Grinding & polishing department:

Situated next to the Production department is the Grinding & Polishing department. In this

department rough edges of the finished products are smoothed out and polished. This department

has two doors, one door is used to rough edges product and the other is used to sent finished

product out of the department to the next department.

Screening:

In this department products will be tested so that it would meet Exotica Melamine standards. The

producted will be tested using electronic weighing machine and skilled person to identify

discoloration. The job in this department is time consuming, so its takes a lot of time for the

product to pass through this department.

Washing:

Situated near the screening department is washing department. In this finished products are

washed with soap water and left to dry. This department is also large as it needs a lot space to

dry the products.

Packing:

This department has two doors, one of them is connected to the plant and the other is connected

to finished goods storage. In this department, the products are packed and sent to the storage.

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Raw Materials


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Department 1

(Stock)

Department 2

(Glue & Heating)

Department 3

(Cutting)

Department 4

(Production Department)

Department 5

(Grinding & Polishing)

Department 6

(Screening)

Department 7

(Washing)

Department 8

(Packing)

Diamond Melamine Process Layout: (Functional)


Value Chain Analysis: The value chain a systematic approach to examining the development of

competitive advantage. In order to find out the source of competitive advantage we must do

value chain analysis. The organization is split into 'primary activities' and 'support activities.

Primary Activities :

Inbound logistics: Our main Inbound logistic is raw materials and the Exotica Melamine use

raw materials are

Melamine compound,

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Melamine shiner,

Printed tracing paper.

Since the first two mateials are not readily available in the markaet so Exotica Melamine has

give the purchasing order in advance. it takes at least 3-4 weeks to recived the goods after

Exotica melamine made the purchaing order. Therefore Exoticamelamine keeps ample amount

of raw materials on hand so that if there is any sudden increse in demand they donot run out of

stock.

7.5 Production

The Process Type at Exotica Melamine

Exotica Melamine uses Batch Processing for production. The main reason for using this

particular process is that, Exotica being a melamine company need some moderate variety in its

production process. Example- the production of different kinds of melamine products is more or

less similar (raw material remains same). Their only difference is in their design and processing

time. Therefore, we may say that the key factor in process selection of Exotica Melamine is

moderate variety in production. Another factor is that, a batch manufacturing facility produces

intermediate volume of each good.

The advantages of batch processing are as follows:

Production flexibility is there.

Per unit cost will be less than job shop.

Planning and scheduling of production process will be moderate than the job shop.

Output variety can be increased but at a less cost.

Equipment utilization will lead to high usage of total capacity.

Batch processing can be performed with semi skilled workers that will reduce the labor

cost.

Theoretically, moderate volume can be a disadvantage of batch processing. But, as Exotica melamine

needs a few more varieties to be added, batch processing helps it to do that. For example, as Exotica

melamine has to produce different varieties of similar products (exp-Dinner plates) to meet what the

customer really expects from them, batch processing is an effective process with which this company can

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satisfy the hidden demands of its customers. Besides this, the company is able to maximize the utilization

of its total capacity, which will help to compete within the industry as it did before.

The Production Process of Dinner Plates:

Exotica Melamine produces more than 48 brands of melamine products. It must be said that most of those

follow a similar production process. For example-the production process of Dinner Plate is quite the same

as Soup Bowl. The basic difference is in the design\shape and time required to process those inputs. Also

different products require different sets of conditions for production. This means things like- temperature,

amount of materials varies for different product while they are produced.

Exotica melamine first receives the raw materials from supplies and stores them at the

warehouse. A sample of the raw materials is sent to the Exotica’s Quality Control Department.

There intensive testing is done on the samples (of raw materials) and then they are compared to

the standard required to produce the melamine. If the raw materials meet the standards then they

are approved by the Exotica’s Quality Control Department and sent for processing (production).

If they fail to meet the standard then they are rejected and sent back to the supplier.

Our product under study “Dinner Plate” has 12 sub-processing units in its production line.

The manufacturing process of Dinner Plates can be described in the following manner:

Adding Glue to Paper:

The printed tracing paper that Exotica melamine outsourcers from other companies, those are

basic print design on the melamine product. Then synthetic glue (cyanoacrylate) is added on the

opposite side of the printed-paper. Labor skill: low

Heating:

After adding the glue, the paper is then dried in a large electric oven. Labor skill: low

Cutting:

After the paper is dried it cut into desired shape according to the design. Labor skill: high

Weighing:

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The ingredients (melamine molding compound- 0.1 to 10 percent of N-methyl-2-pyrrolidone and

a resin selected from the group consisting of epoxy, phenolic and silicone resins) are first

weighted. For dinner plate 125g. Labor skill: low

Heating the Compound:

After weighing, the compound is heated in the furnace for 40 to 60 seconds at 120˚ Celsius.

Labor skill: low

Compressing:

This process is machine intensive. The preheated compound is placed into the machine. The

machine compresses the compound at 180 psi and apply heat at 150-160˚ Celsius for 30-50

seconds to form the basic shape of the plate. Labor skill: moderate

Adding the designed paper:

After forming the basic shape the worker add the designed paper on the plate, then the machine

compresses again at 120 psi and apply heat at 140˚ Celsius. This process attaches the print design

on the plate. Labor skill: moderate

Adding Melamine Shiner:

After adding the print design the worker add melamine shiner (Methyl Ethyl Ketoxime) on to

plate. Then the machine compresses again at 80 psi and at 100˚ Celsius. This process makes the

melamine to shine which would otherwise look dull and gloomy. Labor skill: moderate

Grinding:

After the plate has been made, the edges of the plate are grinded using a grinding machine to

smooth the edges. Labor skill: moderate

Polishing:

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After grinding, the plates are polished to shine even more and look nice. Labor skill: moderate

Plastic Wrapping:

To prevent from dust and other harmful particles the plate are wrapped in plastic; usually three

plate together. Labor skill: low

Packing:

After plastic wrapping the plate are packed into boxes; usually six plate in a single box. The

boxes are made from recycle paper which the Exotica melamine outsources from other

companies. Labor skill: low

At last the finished products go to inventories. The production process ends here. They fulfill the

order slips provided by the marketing department. Thus they meet production schedule.

Exotica’s Quality Control Department plays a crucial role in the whole process. Their task begins

from checking the raw materials (as mentioned earlier) to packing. They can check quality at any

stage of production to assure the best quality.

At Exotica Melamine if the raw materials are rejected before production only then it is sent back

to the suppliers. But if at any other stage of the process a fault is found the rejected items will be

considered just as scrap. The production process is stopped immediately.

Analysis of the process of Exotica Melamine:

Activity Batch At Exotica Melamine

Work in process Moderate Moderate-High

Cost per unit Moderate Moderate-High

Equipment Flexibility Moderate Moderate

Fixed costs Low-Moderate Moderate

Variable Cost Moderate Moderate

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Labor skills Moderate Moderate-low

Volume output Low Low-Moderate

Scheduling Moderate Complex Low Complex

Job Variety Moderate Moderate to High

SHAPE \* MERGEFORMAT

Outbound logistics: Our outbound logistics will be

Warehousing

Order fulfillment

Transportation

Distribution management

4. Marketing & Sales: Marketing and sales activities will be included following

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Adding glue to the printed-paper

Heating the paper to dry

Cutting the paper into desired shaped according to design

Weighing melamine mounding compound

Heating the compound

Putting the preheated compound in the compressing machine &

apply heat to form the basic shape

Adding the designed paper & compressing again with heat

Adding melamine shiner & again compressing with heat

Grinding the edges

Polishing

Plastic wrapping

Packaging

Discharge

Exotuca Melamine (dinner plate) Production process: (Batch)


Channel Selection

Advertising

Promotion

Selling

Pricing

Retail management

Supporting activities:

1. Firm Infrastructure:

Organizational Structure ( we will follow horizontal organizational structure)

Quality management ( We have product quality control department)

Company culture

Public affairs

2. HRM: (Employee recruiting, hiring, training, development, and compensation)

The company follows on the job training for its production workers. To motivate employee the

company pays a performance bonus, promotion. On the other hand company uses a non pay

motivation technique by high lighting the best performer of the month in various sectors.

3. Technological development: (Process automation, design, redesign)

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It uses world-class technology from the Long Chung Company of Taiwan. The sources of raw

materials are mainly from Taiwan, Indonesia, Thailand and China. The best raw material comes

from Taiwan.

4. Procurement: (Purchasing inputs such as raw materials, supplies, and equipment)

Some office equipments: (Computers, Printers, Fax machines, Power Generator, Copier,

etc.)

Technical and Manufacturing equipments: (Semi- automated machine, High-frequency

preheating machinery, etc.)

7.6 Equipment & Machineries:

Since our business will produce melamine products, there will be maximum usage and need for

equipment and machineries in producing the products. However, in running the overall business

we will be using different equipments. We will basically be needing equipments and machineries

for two purposes. One purpose will be to carry out our day to day work in the office and other

purpose will be for manufacturing the products

Some office equipments are listed below:

1. Computers

2. Printers

3. Fax machines

4. Power Generator

5. Copier

Technical and Manufacturing equipments - High-frequency preheating machinery (for melamine

industry):

Function:

It is mainly used to the preheating process before moulding of thermo set materials, such as

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melamine. It enhances the liquidity of materials, and decreases harmful ingredient and increases

the glossiness of the product surface.

Features:

1) Introduce advanced technology from Japan. World famous brands are adopted for the overall

unit. Thus the performance is guaranteed.

2) Full automatic hood structure requires no air supply. Accurate switching is ensured.

3) Modification is convenient; only one press is required for the operation.

4) Safety protection -- Multi-protection measures are taken to ensure the man/machine safety

Exotica Melamine Ware Equipment

Commutator Machinery

The device is mainly applied for the pre-heating processing for thermo-set resin material such as

melamine, epoxy, bakelite and urea plastic, etc., including preformed project such as compressed

molding, transfer molding and extrusion molding, etc.

The H. F. Preheating process is widely applied for Thermo-set plastic molding such as for

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electric components, mechanical parts, bakelite products, urea products, melamine table wares,

and packaging of IC, commutator, transistors and other micro-electronic components.

The device can be used to improve the surface glossiness of (imitating ceramic) products,

prevent water-like wrinkle and strengthen the fluidness of powder resin. It can pre-heat and

soften the powder resin (caking) prior to the plastic packaging for the electronic components and

semi-conductor IC, so as to improve the grade and performance for the products.

7.7 Research and development

R&D department will have a research team comprising engineers, psychologist technicians to

find new information on consumer behavior and competitors. Exotica’s R & D department can

use other researches as a secondary source of data. However, there is very limited amount of

research & development in this sector. Almost all the manufacturers in the country still depend

on research & development done in the other countries.

7.8 Quality Assurance:

Exotica’s Quality Control Department plays a crucial role in the whole process to maintain the

product quality. Exotica melamine first receives the raw materials from supplies and stores them

at the warehouse. A sample of the raw materials is sent to the Exotica’s Quality Control

Department. There intensive testing is done on the samples (of raw materials) and then they are

compared to the standard required to produce the melamine. If the raw materials meet the

standards then they are approved by the Exotica’s Quality Control Department and sent for

processing (production). If they fail to meet the standard then they are rejected and sent back to

the supplier. Moreover, we are careful to assure the best quality of each factors related to the

product manufacturing.

8. Marketing Plan

8.1 Brand Elements

Company Name: Exotica Melamine Ware

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Mission: We, the new generation of melamine producers, will focus on premium quality melamine

products with innovative style and design.

Vision: Establishing a worldwide brand Image by reintroducing Bangladeshi Melamine products in the

Global Market.

Brand Slogan: Creating a divergence in your tableware

8.2 Product, Place, Pricing & Promotion strategies of the company (4P’s):-

Products: -

Our Melamine Industry produces crockery at the cheaper possible price with high quality and unique

design. Our main differentiation from the competitors will be achieved through this unique design of

product, which will serve as the unique selling proposition of our products. In its product assortment it

will include various sizes and designs of Mug, glass, Plates, Bowl, Tray, Spoon, Salt pot & Tea cup. As

crockery melamine endures longer than that of ceramics, glass, and tin made products, we expect to

capture market share of our product quickly. Where as it will use best quality food graded raw materials,

which is hygienic and approved by BSTI (Bangladesh standard and testing institute). Quality product,

attractive designs and standard packaging and distribution system will gain the confidence of customers,

distributors and retailers. This ultimately turns the product as a highly accepted brand among its

customers.

Place (distribution):-

The company follows dual distribution system to distribute its products. It uses 3 distribution

vehicles to transport its product straight to the door of retailers and distributors. More over the company

has two authorized agents through which it tries to cover its distribution needs. The company’s markets

sphere extends beyond the domestic market. After functioning fully in the domestic market, the company

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will also start to export its products into India through Bhutan. Our marketing research indicates that we

have a huge sales potential in India. Since exporting any product from Bangladesh to India is restricted,

we have decided to open an agency in Bhutan. This will not be like a foreign direct investment, but we

will give dealership to a local company in Bhutan to act as our buying house to import our products. Then

we will export our products from Bhutan to India. This how our overall cost will be lower and we will be

able to capture the Indian market.

The domestic Market- (initially)

Pricing:-

To be competitive in the market, the company will adopt target-pricing strategies. Actually

success in target pricing completely depends on how well a company can control its cost. To provide

better quality products at an affordable price normally less than other branded products of same quality.

To reduce cost, by keeping the quality intact, the company reduces its wastage of raw materials, other

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resources, and better-trained human resources management. The wastage level of the company is 50%

lower than its competitors. More over the Management of the company will ensure to reduce wastage

level further more. By being effective & efficient in using raw materials, human resource and

machineries, the company will achieve lowest possible cost for its products than its competitors. Through

standard setting for workers the company increases its production to the highest level at the industry,

which reduces cost in turns.

Promotion (Advertising):-

The company will maintain the best quality for its products and use selected advertisement

medias like radio, television and print media. For radio commercial- the company shall use attractive

music tune and voice of a housewife to grab listeners attention. Advertisement in T.V will be given

between prime Dramas and different cooking shows. The company will specially advertise on ATN

Bangla. In terms of advertising, the company will use attractive models as housewives using the products.

As mentioned earlier, the company will also use print media. Colorful ads will be given in different

newspapers and different cooking/ household related magazines. Moreover, the company will distribute

free calendar, T-shirts for its distributors, sellers & buyers. It will also participate in DITF (Dhaka

International Trade Fair) as a form of advertisement to enhance its brand image, at the same time generate

sales.

This is how we have allocated our budget-

1. TV commercial- The advertisement will be shown only on ATN Bangla, every weekend at once a day

for the whole month. Emphasize will be during the night soap opera and cooking shows. Moreover,

special emphasize will be given in showing the ad on Friday evening during Bengali movie (this is the

most important ad to reach the rural people.

Cost of Commercial: 8*1*Tk.1,000*10s= Tk. 80,000

2. Radio commercial- The radio commercial will be broadcasted only at ‘Radio Today’ every

alternate weekend at once a day for a month.

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Cost of Commercial: 4*1*Tk.1000*10s=Tk.40, 000

3. Print Media- The print advertisements will be put only at ‘Prothom Alo’ on friday (5 col.inchs)

Cost of Commercial: 4*5*Tk.2, 500=Tk.50,000

Total Cost= Tk. 170,000 (per month)

Total cost= Tk. 2,040,000 (1st year)

Summery-

Promotion Type Media Frequency Est. Cost-yr1

TV Commercial ATN Bangla Every weekend, once a

day

960000

Radio Commercial Radio Today Every alternate weekend,

once a day

480000

Print Media Prothom Alo Every Friday, 5 column

inch

600000

Total Yearly Expense 2,040,000

8.3 Segmentation, Targeting and positioning strategies of the company:-

o Segmentation: -

The company will mainly use mass marketing strategy through out the country. Due to the

limitation of resources the company will first operate in some selected districts. In future the

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company has its vision to expand its market area all over the country. Though the company is a

consumer goods producer, sometimes it will supplies products to business for their specific order

such as SMC (social marketing company), Hotel Radisson, and over hundreds of decorators

including defense mess. Exported items will be produced according to the specification of

importer country. The company will also produce customized products for special orders

comprising or more units. Customized product’s features will include demanded logo, design,

size and other such attributes. The company will follows a micro marketing practice with

inclination to build a strong bond of customer relationship with its customers.

o Targeting: -

Market targeting refers to the selection of one or more market segments to which a

company can serve with its resources after considering the alternatives and the potentials of the

market. The nature of the industry, level of buyers, general economic conditions of Bangladesh

and the nature of the product don’t give the scope to any melamine company to adopt

differentiated marketing strategies. So the company will offer an undifferentiated product, but

the target customer group will be the middle income group to upper income group, those who

can afford it. Our geographical target area in terms of the domestic market will be the urban and

sub-urban cities. Through out its production, distribution, pricing and promotional activities there

is no differentiation, either for customers or for any geographical segment in the country. To

capture the export market for melamine products, the company will provides better quality of

products, packaging at a lower price in comparison to the domestic market. Company will reduce

its price from the exported products to the extent it gets tax rebate from tax authority. This gives

the company a competitive advantage in the export market compared to the domestic market and

also over the foreign competitors.

o Positioning: -

The primary target of our company is to re-introduce melamine to both domestic and foreign markets.

Positioning is the combination of marketing strategies which aims at occupying a certain position in the

buyers’ minds. A company might obtain the position in the buyers’ mind through better product

attributes, price or quality, offering the product in a different way than the competitors and so on. Our

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company will offer improved quality of products in the industry at a lower price even than the market

leader, which ultimately helps to position the product in the buyers’ minds as the best quality product.

The market share of the company is expected to grow at a steady pace. The brand 1 melamine, Sharif

melamine is an old and reputed company in the market. It has an establish brand loyalty, good customer

base for which it is less emphasizing less on quality and charging more price comparative to its quality.

Where as our company will be a new company and still trying to make a strong customer base and brand

loyalty in the market, for this reason it is more emphasizing on quality and charging more reasonable

price to its quality.

Positioning Map

Data presented in the figure has been taken from the results of a survey conducted by Diamond Melamine

Industry and our company is positioned based on our assumptions.

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As it can be seen from the above included graph, among the five major competitors in the market, United

Melamine offers the product at the cheapest possible price, but the quality of their product is also lower

compared to others. Crown Melamine offers their products in a better quality, but charges a bit higher

price. The current industry leader, Sharif Melamine is able to charge the highest price for their products

due to their established brand name. Sharif Melamine’s closest competitor Diamond Melamine offers a

little better product, but charges a little lower price and they are gaining market share quickly. Now our

company is expected to offer products which are of the same quality as of Diamond Melamine’s, but we

will be offering our products at a little cheaper than them in order to have a competitive edge. Moreover,

our unique designs should give us an upper hand over all the established melamine companies.

9. Human recourse strategy and planning

It is very important for any company to have a well-defined and apparent HR policy to run the

firm smoothly. It starts from recruitment and continues to turn off. All aspects are included here.

In one word, a company is nothing without an excellent HR. The EXOTICA MELAMINE

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WARE also has an HR Policy; but, before that there the some basic principles and

commitments which the company has to maintain; they are-

And the commitments towards the workforce are as follows-

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Basic Principles of the HR Policy

Prohibition of Child Labor Prohibition of any form of Discriminations (Gender, Age, Sex, Race, Religion, Status)Equality Freedom of Association and the Right to Collective BargainingNo HarassmentMaintaining all Possible LegalityCompliance of Occupational Safety & Health Provisions Prohibition of Forced LaborCompliance of Environmental & Safety ProvisionsAffirmative Action Ensuring Social Compliances

Lowest Wage & Salary

Overtime Payments

No Child Labor Proper Environment


The HR Policy of the EXOTICA MELAMINE WARE starts following-

Recruitment Process

Recruitment is an important job for any organization. To recruit there are some steps that the

EXOTICA MELAMINE WARE will go through.

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Job Analysis Manpower Analysis of Number

Selecting Internal or External

Recruitment

Discipline & Rules

Training Programs

Social Compliances

Compensations & Benefits

Legality& No Discrimination

Factory Culture


Job Analysis

The main analysis should be conducted by the supervisors. There are certain reasons to assign

them to analyze-

They can understand the posts needs as they observe closely

They can easily figure out the problems with the existing systems

They would have direct communications with the workers

They needs to figure out or define the following things-

Job Content- what are the responsibilities and the duties the workers need to perform.

How to work or perform the tasks.

Requirements- they should figure out what types of skills and capabilities are needed in

the people. What qualifications are required? It is to be done based on the qualitative

approach.

Relationship & Environment- they should figure out how the worker should behave, to

whom and how they will be liable, what conditions they would work what type of work

environments are there and so on.

After they do the analysis they would hand over their findings to the upper level management.

After their analysis the management would again give the supervisors for the manpower analysis.

Manpower Analysis

Manpower planning at the EXOTICA MELAMINE WARE would be divided into two parts;

which are-

Manpower Plan for workers

Manpower Plan for management

Manpower Plan for workers

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As it is a manufacturing company its success mostly depends upon the productivity of the

workers. Therefore, to make a good manpower plan for the workers is very important for them.

To plan accordingly the supervisor & the HR department goes through the following three steps-

Calculation of Manpower Required

Permission from Higher Authority

Manpower Plan for management

Calculation of Positions Required

Approval from Higher Authority

Selecting Internal or External

External Recruitment

Whenever there would be any empty entry-level post, or lack of internal supply, or new

employees needed then the company should look for the external recruitments. By many sources

and by many methods it can be done. Besides, the market of the labor should be considered;

whether it is tight or loose labor market or not. Normally most of the time there is good supply

of workers; therefore recruiting right person would be difficult due to large number of supply;

whereas, in the management level yet now people do not prefer the Garment industry as a

lucrative place to join. Thus, EXOTICA MELAMINE WARE should do something to make it

lucrative place to join. EXOTICA MELAMINE WARE can brand as an attractive recruiter.

Based on these the management should decide whether to go for internal or external recruitment.

Recruitment

There are some principles which the EXOTICA MELAMINE WARE would follow while

recruiting. These are-

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Principles While Recruiting

Prohibition of Child LaborProhibition of Forced LaborEquality (EEO)No DiscriminationEmployment Contract


At first recruitment notice would be given or published. Then recruitment would be done. For

this following recruitment channels or the methods can be used-

Direct Applications-

Advertise through Newspapers

Electronics Media

Posting

Selection Process: To select from the recruited people the management can go through the

following procedures-

Steps When to do Who to do Description

1. Pre-

Screening

after getting all

the application

forms & applies

Immediate

supervisor; in

some cases HR

It is mainly the screening of

the recruitment after getting

all the applicants

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executives

2. Initial

interview

After selecting

the screened

applicants

HR executives &

Supervisors

In the management level it

would be mostly the written

test to figure out their

knowledge; in the worker level

it would be the promises of

their ability

3. Reference/

other checks

After selecting

candidates from

the initial

interviews

Supervisors It is to check the references; it

also can be the checking of

proper birth certificate to

eliminate child labor; to check

the academic transcripts.

4. Testing To check the

capabilities after

initial interview

Supervisors &

Line mangers

For the worker level it would

be checking the production

capacity; for the management

it would be checking their

capability to handle the blue-

collar

5. Interview Final interview

after testing

For the

management-

HR Director,

HR manager

For the worker-

HR executive,

Supervisors

It is the formal procedure to

know about the candidates and

rank them to final selection

6. Job offer &

Salary

Determinati

Formally offer

the position to

the recruited

HR personnel

through the

departmental

Based on the ranks the selected

deserving candidates would be

given the employment letter &

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on candidates after

the interview

supervisor contract to join the company

where all the terms &

conditions would be written,

which would be kept both to

the employee & employer;

besides, pay grade will be

determined in this stage. For

the workers & lower levels

they will be given specific pay

grade, and there would be

chance for bargaining for the

upper management

7. Other

testing & ID

Card

Formal

procedures after

final selection

By the

responsible

people

Other testing would be done if

required; such as medical

testing with validity; and they

will be given the ID card

(Appendix-02) which they have

show in their work area

(Selection Steps)

(All the history of the candidates would be recorded in the skill inventory and HRIS which is

discussed later.)

Terminations & Unemployment Compensation

To recruit new people to have empty posts is necessary which a resultant of termination is. The

EXOTICA MELAMINE WARE would follow mostly the industry practices in this regard. There

are certain ways to terminate which the EXOTICA MELAMINE WARE is going to follow.

They are-

Retrenchment

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Discharge

Dismissal

Termination

Due to disciplinary action

Retirement

Retrenchment- according to the labor law 2006, section 20, the EXOTICA

MELAMINE WARE authority would be able to retrench any worker if there is

unnecessary internal labor supply.

Discharge- according to the labor law 2006, section 22, the EXOTICA MELAMINE

WARE authority would be able to discharge any worker if he/she has physical or mental

disorder approved by any registered doctor.

Dismissal- for misbehave and criminal activities the EXOTICA MELAMINE WARE

would be able to dismiss any worker without giving any pre-notice and any

unemployment compensation. Besides, if the worker or employee is being dismissed

due to doing misbehave then they will not get any recovery. Followings will be regarded

as misbehave-

Termination- there is mainly two ways to terminate people. They are-

a) Termination by employee- any permanent worker can resign from the post by

giving a written notice of resignation before 60 days of leaving. Besides, a

temporary worker or employee can resign from the post by giving a written notice

of resignation before 30 days of leaving. These are according to the labor law

2006, section 27. But rather giving written notice the worker can leave the

origination paying the same amount of the money he/she would get for that time.

b) Termination by employer- employer can also terminate the employees or

workers through the proper way. There are certain unemployment programs they

need to go through.

Retirement- according to the Bangladeshi labor law after the age of 57 people should

retire from the position.

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Retirement Benefits

According to the labor law 2006 section 26(4) retired workers should be paid all the deserved

and previous dues. Moreover, there should be some retirement benefits for the retired people.

There should be Provident Fund for the employees and workers. In the entire job period an

amount should be saved for them as for the fund which they would get after the retirement. If

any employees get terminated of switched then the saved fund up to that period he or she can

take with him or her.

Training & Development Programs

To enhance the productivity of the entire organization it is very important to provide training and

development programs for the employees and the workers. The EXOTICA MELAMINE WARE

would also provide training and development programs to the employees and the workers. All

the programs would serve the purpose of-

Career planning

Assessments

Competency Modeling

Skill-based training

Company university

Health & Safety

Health and safety issues are vital for any company. The EXOTICA MELAMINE WARE would

also provide the health and safety facilities and required training programs to the employees and

the workers. After certain periods, such as 3-4 months these sorts of trainings would be

conducted. To conduct the programs specialists from outside would be hired. Based on special

needs, like- seasonal diseases, epidemics, these sorts of programs can be organized. These sorts

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of training programs are for awareness of the employees and the workers about how to prevent

from the health damages and how to keep safe own-self and the company’s wealth.

COMPENSATION PLAN

Salary and wages will be maintained in following ways to cope up with the legality of the labor

laws.

Salary & wages pay- this should be paid after determining the regular duration of

workings and the extra work hours.

Increment of salary or wages & Promotion- based on ability and experience salary and

wages would be incremented. Increment will be for 2 times by 10% of the basic for the

management. After that he/she will be promoted.

Payment time- after giving the salary of the first month within next month’s first seven

days it must be paid.

Salary/Wage slip - while giving it slip of clear explanation should be provided.

Defer of salary/wage- wages of worker should never be deferred.

Minimum Wage/Salary - the EXOTICA MELAMINE WARE would pay according to

the following described process or grade ways comparing to the Bangladeshi law.

Deduction from wages- according to Bangladesh labor law 2006, section 125 (2) for

following matters or discipline breaks salary or wages can be cut which can be regarded

as the punishments or negative compensation of the workforce-

Rewards and Incentives

Other than the compensation programs and the benefit programs there will also be some rewards

and incentives for the workers which are-

Reward for crossing target (Recognition)

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If the workers of the production floor can achieve the target of cross the target of the production

before the dead line then they will be given incentives. It can be

Recognition to All

Vocal Appraisal

Reward for extra-units produced (Piece Rate

If the worker can produce beyond the target within his or her time period then he/she can be

rewarded financially with piece rate pay.

Worker/Performer of the Month

Every month the best performer from every unit and from every floor will be rewarded the

recognition of the “Worker of the Month”. In every floor on the notice board their photos will

be hanged for the whole next month so that the entire workforce can recognize them, which will

also be motivating for all.

Evaluation of Production & Performance

In each steps evaluation or auditing of the production and the performances will be done. By

evaluating the production and the performances the strength and the weaknesses will come out

which will helpful for the betterment of the production. To evaluate the production and the

performances the evaluation or auditing technique will be as follows

Total Quality Management

It sustains the competitive advantages by consistently exceeding the current and future

expectations of customers, based on continuous improvement in all processes, goods and

services through the creative involvement of all employees and workers. All the people have to

work on it. Every people will be careful regarding the Quality of the products every time so that

the Quality improves continuously. The EXOTICA MELAMINE WARE will firmly follow

Total Quality Management to construct own self more spirited in the comprehensive apparel

trade market after post MFA era. The quality management objective will be ‘Quality at First

and Forever’ in the business plan and communicated to all level of employees from top level to

lowest level for focusing on the buyers’ desires and expectations with regards to-

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Balanced Scorecard

Balanced Scorecard will also be maintained so that every time the true picture of the production

and performances come out towards the management. The immediate supervisors in every

department will liable to record the findings and to report to the immediate ones, in following

ways the reports will go to the HR personnel so that they can measure or evaluate the

performances.

Leadership

To run the EXOTICA MELAMINE WARE solely depending on autocratic or democratic

leadership style would not be viable. To some extend autocratic is required like as while

controlling the workers; to few extend democratic style is required like as while getting feedback

or suggestions; where as phantom style is also to be used.

Control Power

While controlling the wages, salary, compensation there should be a dictation. The main power

will be in the hand of the management so that the workforce feels that they are liable to the

management. Beside, when supporting them, giving them the compensation there will be the

friendly leadership. The management should understand the mentality of the workers. While

taking the feedbacks from the workers they should behaved friendly so that they feel part of the

company. When suggestions are taken from them then fully autocratic style should be there.

Therefore, it can be said that leadership should vary according to the needs. If the power controls

of the management and the participation of the workforces comply with each other then the

overall mission, vision, or the goal of the company will be achieved.

10. Foreseeable and Unforeseeable Risk

10.1 Foreseeable Risk

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Θ Melamine industry is a lucrative industry. Therefore high expected profit will encourage other new

entrants to come to the industry.

Θ Foreign firms may show their interest in this industry which may decrease our customers.

Θ Increasing price of raw materials is a big threat to us. It may decrease our profitability in the long run.

Θ Unpredictable political situation of the country is another threat to our business. Political instability has

always hampered business of all types in Bangladesh. Sudden hartal, street agitation or highway blockage

by political parties will be great barriers for Exotica Melamine Ware.

10.2 Unforeseeable Barriers

Θ A sudden change in government policy about melamine sector can hamper the operation.

Θ The natural calamities may suddenly take place and that will hinder the operation.

Θ Chances of maritime accident.

Θ Economic downturn can hamper Exotica Melamine Ware as overall income level would go down.

Θ Decrease in purchasing power of the customers.

Market risk

Public demand for melamine product may change drastically over the time. In addition to that, different

external environmental causes like political and legal issues may results in highly risky market situation.

For example, increasing inflation can increase the cost of the company. However, we expect the demand

for melamine product will increase day by day because we are producing a product with ceramic look but

unique in design and high in quality. This intuition regarding the market indicates that there are lots of

prospects for melamine.

Operational risk

The Company has only 50 employees. The absence of the office employees will not hamper the

operations that much. However the absence of lower level workers may create problem.

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Credit Risk

Initially the company will need money to raw materials, equipment and machinery. This money is

expected to finance by taking loans from the bank and from our funds. So if we encounter loss it will be

tough for the company to pay back its debts.

Liquidity Risk

In the first 2 years the company is expected to loss substantial amount of cash due to startup costs. As a

result the company may face huge cash crunch due to losses. In that situation the company may have to

take additional loan from the banks. However, a substantial portion of asset of the company will be

pledged for bank loan. This may force the company into a short-term liquidity crisis.

11. Financial Management Plan

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Melamine is not a new line of business in Bangladesh. Already there are many melamine companies that

are performing in the industry. However it seems to be very prospective as the market is not yet in its

mature stage.

As the new entrants in this market we need to be very cautious about the quality of products, different

promotions, price and also the advertising expenditure which are needed to boost up sales.

As we are going to be market follower, we need to be very much cautious about cost reduction through

improved efficiency and good supervision, not at the cost of bad quality.

General Background

Number of machines will be five.

Each machine is capable of producing different categories of Melamine product.

There is no tax for the first five years for the new company situated in Dhaka and Chittagong, and

as we have decided to set our business in Dhaka so we do not need to pay tax for the first five

years.

We plan to use electricity as the main source of energy, for the initial stage to reduce extra cost.

11.1 Assumptions

After conducting all the required research, forecasting and analysis, we have found that the initial

investment or project cost of our business would be Tk.21000000. We have studied our market and made

some financial assumptions which would help us to invest this total investment effectively and would

give us the maximum return.

The assumptions we have made during estimating our balance sheet for the first five years of the business

are:

2 bighas of lands is bought at Tk.3000000 per bigha.

Office building of 2000 sq. feet will be rented with a monthly rent of Tk.25000.

Office furniture, computers, printers will be bought by investing 500000 and will depreciate at

the rate of 20% per year.

Machinery will depreciate at the rate of 10% per year. ( As per Income Tax Ordinance 1984)

3 delivery vans will be bought at 1000000 each and will depreciate at the rate of 10% per year.

Revenue and cost related assumptions

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It is assumed that:

Revenue will grow at 15% at the second year, 20% at the third year, and 25% at the 4 th and 5th

year initially.

Cost of goods sold is 50% of the revenue.

Wastage level will reduce by 6% for the learning effect and hence increasing operational

efficiency.

Salaries and wages is 15% of the revenue.

Other expenses are 12% of the revenue.

Selling and distribution is 25% of the revenue.

Other expenses in year 1 comprise business start up cost of Tk. 850000 and each year it will

reduce by Tk.50000 because of efficiency and also because of the reduction in the wastage level.

Other Assumptions

Firm will run more on equity than debt, because at initial stage it will be really hard to attract debt

capital.

Market Interest rate is taken to be 14.5% per annum. It is used to calculate the weighted average

cost of capital of the company which is then used to discount the Free Cash Flows of first 5 years’

expected values.

It is assumed that business will run for the foreseeable future.

And as a result we will have to find a terminal value for the company to get an idea about the Net

present Value.

We will follow Straight-line Depreciation method for our fixed assets.

9% interest on the short term investments is considered and the company will get if it invests any

excess cash in hand.

Depreciation

Fixed Asset Schedule Cost in Tk. Dep. Rate

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Land 6000000 0%

Building 2500000 20%

Machine (5) 7000000 10%

Office furniture, computers, printers 500000 20%

Delivery Van (3) 3000000 10%

Total Fixed Assets 19000000

11.2 Financial Plan

Out of total capital requirement of Tk.21000000, Tk.17000000 will be provided by the six share

holders and the rest Tk.4000000 will be financed by loan from friends and family.

Lease facilities will not be allowed as business is in its infant stage probably no company will be

interested to invest in such a new venture.

Total investment required in this project

Breakdown of Investment Tk.

Investment in Fixed Assets 19000000

Investment in Working Capital 2000000

Total 21000000

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Fixed Cost at initial stage Tk.

Owned Land (2 Bighas @Tk 30 lakhs) 6000000

5 Machines @ Tk. 1400000 7000000

Building / Factory Premises 2500000

Office furniture, computers, printers 500000

3 Delivery Van @ Tk. 1000000 3000000

TOTAL 19000000

Working Capital Requirement

There will be approximately Tk.2000000 required for working capital for purchase of Raw

material, payment of wages and all other day to day expenses for running the business.

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11.3 Budgeted Income Statement

Details Year 1 Year 2 Year 3 Year 4 Year 5

Tk. Tk. Tk. Tk. Tk.

Revenue 10,000,000 11,500,000 13,800,000 17,250,000 21,562,500

Cost of goods sold (5,000,000) (5,750,000) (6,900,000) (8,625,000) (10,781,250)

Gross Profit 5,000,000 5,750,000 6,900,000 8,625,000 10,781,250

Expenses:

Selling and distribution

expenses

(2,000,000) (2,875,000) (3,450,000) (4,312,500) (5,390,625)

Administrative expenses:

Salaries (1,500,000) (1,725,000) (2,070,000) (2,587,500) (3,234,375)

Other expenses (1,200,000) (300,000) (250,000) (200,000) (150,000)

Interest Expenses (580,000) (580,000) (580,000) (580,000) (580,000)

Operating Profit (280,000) 270,000 550,000 945,000 1,426,250

Interest income - 49,875 49,875 125,210 177,802

Net Profit / (Loss) (280,000) 319,875 599,875 1,070,210 1,604,052

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11.4 Budgeted Balance Sheet


Assets: Tk. Tk. Tk. Tk. Tk.

Fixed Assets:

Land 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000

Building 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000

Machinery 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000

Delivery Van 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000

Office equipment 500,000 500,000 500,000 500,000 500,000

Total Fixed Assets 19,000,000 19,000,000 19,000,000 19,000,000 19,000,000

Accumulated depreciation (1,600,000) (3,200,000) (4,800,000) (6,400,000) (8,000,000)

Net Book Value 17,400,000 15,800,000 14,200,000 12,600,000 11,000,000

Current Assets:

Cash 2,920,000 1,889,875 1,475,000 3,527,585 4,267,500

Investments - 525,000 525,000 1,318,000 1,871,600

Accounts Receivables 1,500,000 3,625,000 5,939,750 6,764,375 9,404,912

Total Current Assets 4,420,000 5,514,875 7,414,750 10,291,960 13,672,412

Total Assets 21,820,000 21,839,875 22,139,750 24,209,960 26,544,012

Liabilities and equities

Short term liabilities:

Sundry Creditors 1,100,000 800,000 500,000 1,500,000 2,230,000

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Long term liabilities:

Loan 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000

Total liabilities 5,100,000 4,800,000 4,500,000 5,500,000 6,230,000

Equity:

Share capital 17,000,000 17,000,000 17,000,000 17,000,000 17,000,000

Retained Earnings (280,000) 39,875 639,750 1,709,960 3,314,012

Net Equity 16,720,000 17,039,875 17,639,750 18,709,960 20,314,012

Total of liabilities and equities 21,820,000 21,839,875 22,139,750 24,209,960 26,544,012

11.5 Weighted Average Cost of Capital

We know that weighted average cost of capital is the average of the after-tax costs of each of the sources

of capital used by a firm to finance a project. The weights reflect the proportion of the total financing

raised from each source.

Now we look at WACC, and we see that its WACC hovers around some 12.90% in the first 5 years of the

business.

The interpretation of this value would be that the ‘rate of return’ or IRR (Internal Rate of Return) has to

be higher than this WACC value to have the project profitable for investors. So, the decision criteria for

whether to run this project or not would be,

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IRR > WACC

In this case,

IRR has to be > 12.90%, on average.

WACC CALCULATION


Long-term Liabilities 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000

Equity 17,000,000 17,000,000 17,000,000 17,000,000 17,000,000

Total LT Debt & Equity (4) 21,000,000 21,000,000 21,000,000 21,000,000 21,000,000

Weight of Debt Wd 0.1904 0.1904 0.1904 0.1904 0.1904

Financial Exp (Int) 580,000 580,000 580,000 580,000 580,000

Cost of Debt, Kd** 0.145 0.145 0.145 0.145 0.145

Owners' Equity (3) 17,000,000 17,000,000 17,000,000 17,000,000 17,000,000

Weight of We 0.8096 0.8096 0.8096 0.8096 0.8096

Cost of Equity (Ke) (b) 0.1250 0.1250 0.1250 0.1250 0.1250

WACC 12.90% 12.90% 12.90% 12.90% 12.90%

** cost of debt is taken 14.5% as any loan provided by Standard Chartered Bank over one year is

charged @ 14.5%

Further Assumptions for NPV

A terminal value will be calculated to calculate the net present value.

It is assumed that the FCF of the company will become constant after the 5th year.

Company does not need to pay tax for the five years, because it will be under tax holiday scheme

approved by government of Bangladesh.

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Net Present Value

The company has a positive NPV. We took 5 years projected cash flow and came up with NPV of

positive value which means that the project is a feasible one.

Terminal Value = FCF of 5th year / WACC

= 3,996,708 / 0.149

= 26,823,545

FREE CASH FLOW CALCULATION

Details Year 1 Year 2 Year 3 Year 4 Year 5 Total

Tk. Tk. Tk. Tk. Tk.

FCF= Rev-

expnses+Dep-

CAPEX

1,320,000 1,919,875 2,199,875 2,670,210 3,204,052

Terminal Value - - - - 24,837,612

Total cash flow 1,320,000 1,919,875 2,199,875 2,670,210 28,041,664

Discounted cash

flows

1,169,176 1,506,208 1,528,679 1,643,500 15,287,416 21,134,979

Initial investment (21,000,000)

Cumulative NPV (19,830,824) (18,324,615) (16,795,937) (15,152,437) 134,979 134,979

PAYBACK PERIOD = 4.99 years or 4 years and 11.88 months

11.6 Break-Even Analysis

If we look at our break-even trends over time, we can easily see a satisfactory downward trend in all of

the burden values. Since break-even point are the minimum points required to be achieved by business

simply to cover its fixed cost, the smaller the values, the less the burden on us. We have done the

breakeven point analysis on the yearly basis. We calculated the break even point on the sales value as the

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range of products of our company is more so it will be very critical to calculate the breakeven point on a

unit basis.

BREAK EVEN POINT


Tk. Tk. Tk. Tk. Tk.

Depreciation 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000

Salaries 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000

Start up cost 850,000 - - - -

Total fixed cost 3,450,000 2,600,000 2,600,000 2,600,000 2,600,000

Variable costs:

Cost of goods sold 5,000,000 5,750,000 6,900,000 8,625,000 10,781,250

Selling and distribution

expenses

2,000,000 2,875,000 3,450,000 4,312,500 5,390,625

Admin exp. - Fixed salary

exp.

850,000 1,025,000 1,320,000 1,787,500 2,384,375

Total variable cost 7,850,000 9,650,000 11,670,000 14,725,000 18,556,250

Revenue 10,000,000 11,500,000 13,800,000 17,250,000 21,562,500

VC ratio to sales 0.785 0.839130435 0.845652174 0.853623188 0.86057971

1-VC i.e. CM ratio 0.215 0.160869565 0.154347826 0.146376812 0.13942029

So, Break Even 16,046,512 16,162,162 16,845,070 17,762,376 18,648,649

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11.7 Internal Rate of Return

Here, we calculate the internal rate of return of our company for the first 5 years of operation, which is a

capital-budgeting criterion that represents the rate of return that a project earns.

IRR CALCULATION

Details Year 1 Year 2 Year 3 Year 4 Year 5 Total

NPV @ 12.90%

Total cash flow 1,320,000 1,919,875 2,199,875 2,670,210 28,041,664

Discounted cash flows 1,169,176 1,506,208 1,528,679 1,643,500 15,287,416 21,134,979


NPV 134,979

NPV @ 13.5%

Total cash flow 1,320,000 1,919,875 2,199,875 2,670,210 28,041,664

Discounted cash flows 1,162,996 1,490,326 1,504,563 1,609,022 14,887,593 20,654,499


NPV (345,501)

IRR=13.07%

The IRR = 13.07 so it is greater then the WACC which is 12.9% so this shows that the project is

feasible.

11.8 Ratio Analysis

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LIQUIDITY RATIO


01. NWC to Total Asset Ratio 0.17 0.25 0.36 0.46 0.60

02. Current ratio 4.02 6.89 14.83 6.86 6.13

There is a trend of Net Working Capital to increase over time. The current ratio is also in a very good

situation which is always above the required ratio.

EFFICIENCY RATIO


01. Total Asset Turnover ratio 0.53 0.61 0.73 0.91 1.13

02. NWC Turnover ratio 0.33 0.41 0.50 0.51 0.53

Overall, the company seems to be getting more efficient over time. Its total asset turn over has increased a

lot in first 5 years of operation and the net working capital turnover ratio also represents a good sign.

PROFITABILITY RATIO


01. Return on investment -1.35% 1.52% 2.77% 4.71% 6.60%

02. Operating profit margin -2.80% 2.78% 4.35% 6.20% 7.44%

03. Fixed asset turn over in

times

0.53 0.61 0.73 0.91 1.13

04. ROA -1.47% 1.68% 3.16% 5.63% 8.44%

05. ROE -1.67% 1.88% 3.40% 5.72% 7.90%

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The company’s return on investment has improved over the time and will stand at 10.49% at the fifth

year. The operation seems to be fine as well, since it has a positive operating profit margin of 9.82% after

five years. This improvement is mainly due to the efficiency in operating expenses in those later years of

business operation.

The companies fixed asset turn over is expected to remain very low. However, this ratio is expected to

take off and be in a good position over time. Because, any business needs to utilize its fixed assets in a

profitable way over time, once they are well experienced into the business.

Finally, to measure, the company’s profitability, we look at their ROA (Return on Assets) and ROE

(Return on Equity) ratios. Both of them show similar patterns. Starting with negative values in the first

year, they are expected to grow at a constant rate in the near future.

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12. Long Term Sustainability

Exotica Melamine Ware will able to sustain in the long run because we are offering more value

for the money by providing a blend of good quality melamine product at a competitive price. Our

existing and future competencies will help our company to survive in the long run. For example

our product designs are very unique and high quality. Therefore we will be able to target the both

local and international customers. As we have said earlier that we want to become global. So we

will give more emphasis on durability, design and better quality. Therefore we will able to create

a global brand name. In addition we will build a robust infrastructure within a decade. It will

help us to enjoy economics of scale and better placement of products to the customers.

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13. References

Open Learning World, Cost reduction strategy, retrieved from www.openlearningworld.com on 25th march,2009.

Thompson, A. , Strcikland, A. J. Strategic Management, 13th ed. , New Delhi: Tata McGrahill Publishing Company Limited.

Bangladesh Web. 2007. Melamine Industry. Avaiable at (http://www.bangladesh- web.com/view.php?hidRecord=26516) [ accessed on 20th , March2009]

www.vaaluebasedmanagement.net [ accessed on 25th March, 2009]

(http://www.bdyellowbook.com/catalog/Mills___Industries/Melamine_Industries/) [ accessed on 25th March, 2009]

www.businessballs.com. [accessed on 25th March, 2009]

(http://tutor2u.net/business/strategy/core_competencies.htm) [accessed on 26th March, 2009]

(http://tutor2u.net/business/strategy/competitive_advantage.htm) [accessed on 26th March, 2009]

http://www.12manage.com/methods_porter_competitive_advantage.html [accessed on 26th March, 2009]

Adapted Michael E. Porter Competitive Strategy (New York Free Press, 1980), pp 35-40

Income Tax Ordinance, 1984. Dhaka. Bangladesh Gadget

www.decentplastic.com [accessed on 26th March, 2009]

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http://www.decentplastic.com/



http://tutor2u.net/business/strategy/core_competencies.htm

http://www.businessballs.com/

http://www.bdyellowbook.com/catalog/Mills___Industries/Melamine_Industries/

http://www.vaaluebasedmanagement.net/

http://www.openlearningworld.com/

strategic management report

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