Internship Report on Marketing Glasstech Limited

Executive Summary

It is an internship report that I have furnished on “Total Quality Management (TQM). – A study on Glasstech Limited”. In my report I have analyzed the marketing activities of Glasstech Limited through company analysis in relation with industry analysis. Whereas I have found some problems in it’s marketing activities, internal strengths and weakness, environmental threats and opportunities for the organization. At the end of my report I have recommended for solving the marketing problems, using internal strengths, overcoming internal weakness, facing environmental threats, and indicating the opportunities for the organization that the organization can adopt for its own interest.

Internship

        The theoretical knowledge and practical training is not the same theme. The theoretical knowledge is fulfilled when it can be used in the practical field. For this reason in the several educational institutions the students usually perform the internship. Internship is a practical training which means to acquire knowledge and information. In another direction, internship is a process to achieve practical knowledge about some theoretical lesson. Actually internship means having a practical knowledge from real field of work. In this activity students acquire theoretical and practical knowledge, so that they can appoint themselves to an eligible post after completing their course. Some definitions of internship are given below:

  1. According to Green, “Standard method taken for searching knowledge are meant internship.”
  2. According to Oxford Dictionary. “Internship means practical experience getting in a job”.

Internship has become a part and parcel of modern education. At present other courses of education has aborted internship as a major requirement. Theoretical knowledge is important for development understandability of a student. But except of some practical training these theoretical knowledge is incomplete. During internship the students face various practical problems and thus they learn how to deal with those problems. It increases the students’ efficiency to take decision in proper time and right way.

Form the above discussion; I can conclude that internship is the name of such method, from where a student can acquire practical knowledge as well as theoretical.

Introduction

        From the civilization period people knew how to make glass and how to use glass. At that manufacturer made glass basically from sand. Till today this practice is going on. But the tools used for this purposes have been partially changed. Now a piece of glass can be made from sand, silica gel, mercury etc. Now a days the usages of glass is rapidly increasing in Bangladesh.

     For rapid increasing the market demand of glass, some glass companies are doing operations to meet up the market demand like Glasstech Limited, Nasir Glass, Euro Bangla Glass and PHP Glass. All glass companies are trying to capture maximum customers in order to increase their sales volume as well as profit maximization and also sustain in the glass industry for a long run. Glass industry is now growing stage and there is huge potential market in our country. As a result new competitors are engaged in this glass industry day by day.

    Glasstech Limited is one of the leading companies in glass industry sector in Bangladesh. The products Glasstech Limited are tempered glass, mercury glass, automatic glass door, glass paint, glass brick, glass related fittings, alcotex, vehicle’s glass, windshield & fittings. Glasstech Limited imports their product mainly from well-reputed companies from Belgium, China, Taiwan, Indonesia and Hong Kong. Their target market is industrial buyers, various types of profitable & non- profitable organizations and ultimate consumers.

     Glasstech Limited is a well-reputed organization in glass industry. As their mainly target customer is the industrial buyers, so they are very much well known to industrial buyers. Industrial buyers purchase from them, and then industrial buyers sell it to the retailers and the ultimate consumers. Side by side Glasstech Limited also sells their product to various types of farms and the ultimate consumers.

      I have selected my topic on “TQM (Total Quality Management) of Glasstech Limited”. I think; this is an interesting & uncommon sector. At present glass business field is very competitive because many competitors are playing in this field. To stay in such business field for a long-run TQM (Total Quality Management) must be better than others. So, at present every business organization emphasis on the TQM (Total Quality Management) to satisfy the customers as well as to sustain in their business field for a long run.

Historical Background of Glasstech Limited. 

       Glasstech Limited is a part of R.M. International. The corporate office of R.M. International is situated at Agrabad in Chittagong. R.M. International is engaged in various industries. Glass industry is one of them. Glasstech Limited has three branches. The corporate office or main branch is located at Agrabad in Chittagong. Two branches are located in Dhaka. One is located in Banani and another is in Mohakhali. Glasstech Limited imports glass & its related equipment from Belgium, China, Taiwan, Hong Kong & Indonesia. They receive their container from Chittagong port. Then the major portion of total containers is distributed to the Dhaka office.

       In our country, traditionally buildings are mainly made by bricks. But now a days building are made by glass side by side bricks. Brick’s building is suitable for little multistoried building, but using glass instead of bricks is more suitable for various types of multistoried buildings. Bricks are heavier than glass. For using glass instead of bricks, buildings become less bulky. As a result, buildings can face successfully stronger earthquake and others natural disaster. At present in the whole world, glass is used to build in high-rise multistoried buildings. According to a famous poem; “Buildings made off glass & light”. In our country the numbers of high-rise multistoried buildings are increasing day by day because of, lack of availability of land and higher expansion of business activities very quickly all over the country. Glass is also needed for beautification.

       Glass made product like automatic glass door, temper glass door, glass bricks, vehicle windshields, glass paint & glass fittings are used in office, shop, shopping center, home and profitable & non-profitable organizations. The demand of such types of product is increasing day by day. Because of not only beautification but also to create a positive image to the actual & potential customers and self-satisfaction. Some years ago such type of product was not so available in our country. After entering some glass company like Glasstech Limited into the glass industry, such products are available in glass market and customer can purchase such product in cheaper rate than before. As a result at present, the use of such type of products is in the satisfactory level & rapidly highly increasing.

Background of Glass Sector in Bangladesh

       In the ancient history of Bangladesh, glass was highly costly item. Only a few royal families used glass products in the very short portion. They bought glass product from Arab & Chinese merchants who came to purchase muslin cloths & spices from the sub-continent as well as Bangladesh. In the rule of “Sen” period, only Sen Family used the glass products. At that time glass was more costly than gold. In the rule of “Mughal” period only royal family like emperor, ministers and landlord used glass product. They also bought glass product from Arab & Chinese merchants who came to purchase muslin cloths & spices from the sub-continent. In the rule of “British” period glass become available in royal & rich people. At that time India as well as the sub-continent could produce glass. Side by side, British Government was import glass product from Europe. The quality of glass & glass products of Europe was better than sub-continent’s glass & glass products. But the sub-continent’s glass & glass products was cheaper than European glass. At present glass are not only a product of royal & rich people but also every types of people use glass product.

Concept of TQM (Total Quality Management)

       In 1950 an American consultant “W. Edwards Deming” introduced the concepts of TQM in Japan. In short sense TQM is a system of means whereby the qualities of products or services are produced economically to meet the requirements of the purchaser.

        In broad sense TQM is a unified, integrated and systematic approach, which is involved to consumer satisfaction through delivering the qualified product at the right time in a reasonable price to the consumer. In order to perform TQM effectively, throughout all phases of the enterprise activities such as market survey, research and development, planning of product, design, production readiness, procurement and subcontract, manufacture, inspection, sales and after sales servicing as well as finance, personnel affairs and indoctrination, whole personnel including from the executives down to the managers, foremen and workers are required to participate and collaborate.

        From the above discussions we can identify three major principles of TQM, these are –

i)             Total customer orientation

ii)           Total employee orientation

iii)          Continuous improvement

Significance of the Study:

       Internship program is an important program for the degree of MBA (Masters of Business Administration). It is also a course like factor. But it performs the academic activities differently. In internship program, the students try to achieve both practical & theoretical knowledge. Theoretical knowledge earned at student life especially at BBA (Bachelor of Business Administration) and MBA (Masters of Business Administration). It helps to enrich the students’ confidence concerning the application of their theoretical knowledge in future.

       At present, business is very much competitive. So, to survive in the competition at present globalization era the business bodies need to perform their activities very carefully and effectively. TQM (Total Quality Management) is an important tool in business for surviving in the competition to perform the marketing activities effectively. The company either large or small should go ahead in a planned way by maintaining TQM (Total Quality Management). That’s why; the company always tries to follow the principle of TQM (Total Quality Management.

        The responsibility of TQM (Total Quality Management), the management must apply the marketing plan to achieve company’s strategic objectives. Product planning, design, sales and after sales servicing as well as finance, personnel affairs etc, all are included into TQM (Total Quality Management).

        Each level of an organization must maintain TQM (Total Quality Management) for achieving its specific goal. TQM are becoming more customer and competitor oriented and better reasoned and more realistic than in the past. TQM is becoming as continuous process to respond rapidly changing market conditions. The most frequently cited start coming of realism insufficient competitive analysis and short run focus. So, TQM must be reality basis. The competitor should always deeply as far as possible and the views of the TQM should be long term.

       Glasstect Limited also maintains TQM (Total Quality Management). That is why; I have decided to analyze its existing TQM (Total Quality Management). Also, I have tried to provide Glasstect Limited some possible recommendation. Always I have tried to use my all out knowledge about developing TQM for Glasstect Limited, which I have learnt at academic life. I think my recommendation about TQM (Total Quality Management) would be useful for Glasstect Limited in future.

OBJECTIVES

 To identify the competitors of glass & relevant product.

 To understand the current condition of Glasstech Limited in          order to TQM.

 To identify the problem of Glasstech Limited as per TQM.

 To give some recommendations in order to TQM.

 To acquire practical knowledge side by side theoretical knowledge.

Organizational Structure

Glasstech Limited is an enterprise of R.M International. The organizational structure of Glasstech Limited is as follows-

All the departments of Glasstech Limited are accountable to Executive. Executive is accountable to M.D (Managing Director). G.M (General Manager) and A.G.M (Assistant General Manager) coordinate the departments. They are accountable to Executive and M.D (Managing Director).

Industry Analysis

       Before starting industry analysis we should have to know who are the customers of that industry.

We may segment the customer of the glass industry into two types.

1. Individual buyer (who buy the product for personal use).

2. Industrial buyer

       To analysis any types of industry, we have to proceed through a continuous successive process and for this, at first need to analyze a specific firm’s condition. Glasstech Limited is a firm of glass industry. However it is possible to accomplish industry analysis through the following chart.

Threat of New Entrants:

       If entry barrier is high than possibility will be lower to enter new firms in an industry. This situation is favourable for existing firms but not positive sign for potential up-coming firms. Its depends on the following factors:

  • Ø High fixed cost.
  • Ø High exit barrier.
  • Ø Low market growth rate.
  • Ø Potential market is very small.

In glass industry fixed cost is very high and exit barrier is also high. To start a firm, huge amount of capital is needed. There is a great chance to glass damage in transportation time. Insurance companies of our country are less interest in glass insurance. That means, insurance companies are not interested to take any risk of glass industry. So, there is huge risk to invest in glass industry. As a result the competitors do not inspire to enter this industry. Not only the above factors but also product differentiation, switching cost etc is threat of new entrants. So, the possibility to enter a new firm in this industry is less.

Bargaining Power of Buyers:

       Although there are many glass items with various brand name in glass market, but the bargaining power of the buyer is comparatively low due to less brand competition. In this industry, the company who has achieved unique level through product differentiation, they don’t compete (a face competition) with low quality and low price glass items. For instance, Glasstech Limited never competes with local glass producers. In this situation the buyers’ segment is related with their own buying power and willingness. In generally, the buyers get a few options like Glasstech or Euro Bangla. As a result the bargaining power of buyers is low. This situation is favourable for Glasstech limited. There is a chance to gain profit maximization. But this situation is good in the point of view of a general buyers or industrial buyers. When industrial buyers sell it to the ultimate consumer, here profit becomes little. In glass industry, industrial buyers have to gain little profit.

Threat of Substitute:

       At present glass industry’s has some substitute product. The main substitute product of glass is transparent plastic. Now a days transparent plastic is used instead of glass. Volvo Company use transparent plastic instead of glass in their bus window. Transparent plastic door is the substitute product of tempered glass door. Automatic door can be made by transparent plastic or plywood instead of glass. Hollow Block Bricks is the partially substitute product of glass bricks. Such type of substitute product is cheaper than the glass. So, the above substitute products are threat of glass industry.

Bargaining Power of Suppliers:

      Glasstech Limited imports glass directly from Belgium, Hong Kong and Indonesia. So, suppliers are located in Belgium, Hong Kong and Indonesia. Glasstech Limited sells glass and glass made items, which they make themselves to industrial buyers & ultimate consumers. Glasstech Limited imports directly a large volume of glass from these countries by ship. Though they import a large volume of glass at a time frequently, so bargaining power of suppliers are not strong. On the other hand Glasstech Limited can bargain with suppliers.

Rivalry among the Existing Firms:

      Rivalry means when the market growth rate is zero and in future there is no chance to create new market, in this situation every firms try to cut market share of other firms’ in order to increase own market share. This situation is known as rivalry among the existing firms. In glass industry, market growth is in satisfactory level and the number of firms of glass industry is very limited. So, at present there is no chance of rivalry situation in glass industry.

       At last, it can be said by glass industry analysis that there is no perfect competition. Few firms dominate the total glass industry. So, glass market is an oligopoly market.

Methodology

Methodology is a strategy that is under taken by researcher for doing his research work. So, methodology is very important for doing the research work in a systematic and effective way. In this study, I have analyzed TQM (Total Quality Management) of Glasstech Limited. I have followed descriptive research methodology. For this reason, I have for analyzing various factors related to the study. I have defined their managerial activities step by step as well as the marketing activities related with TQM. I have described the problems in each step & propose some recommendation in each step to over come the problems considering the company’s strength, opportunity, weakness, risk, uncertainty and future intention.

Data Collection Procedure

         I have used both the primary and secondary sources. Primary sources are that sources from where the researcher collects the data directly from the respondent by using questionnaire. Primary data can be collected by telephone or mail or video conferencing or face-to-face communication. To identify the problem, I have talked to executive and authorized responsible persons for their total activities as well as marketing activities to the first hand. Moreover, I have talked to Banani showroom of Glasstech Limited product about 200 industrial buyers and ultimate consumers. The industrial buyers and ultimate consumers are selected randomly. The questionnaires were used to collect the data form industrial buyers and ultimate consumers and employees. The questionnaire was both close-ended and open-ended. Some data have collected form executive. I have collected data orally and some data through questionnaire. The questionnaire was also close and open ended. Besides of executive I have talked to all types of employees & worker for data collection. In addition, I have collected some information form secondary sources.

Sampling Design Process:

         Sampling design process includes four steps. These steps are closely interrelated and relevant to all aspect of marketing research project, from problem definition to the presentation of the result. Therefore sample design should be integrated with all other decision in research project.

Steps in sampling design process are as follows:

Target population: The persons whose are directly or indirectly related with Glasstech Limited as well as glass industry like employees, industrial buyers and ultimate consumers.

Sampling unit: I have taken 200 sample units.

Sampling Technique: I have taken convenience sampling method and cluster sampling method.

Sample size: I have taken 200 samples.

Sources of data:

           Two type’s data are needed to make this proposed research.

 Primary source

 Secondary source

Primary data will be collected from the persons whose are directly or indirectly related with Glasstech Limited as well as glass industry like employees, industrial buyers and ultimate consumers.

Secondary sources are that sources, which are printed out, come of previous research. Secondary data will be collected from possible published media. Such as journals, magazines, newspapers and web site.

Data collection methods are described bellow:

Data Collection Method:

        Data collection is an important task for every researcher. It is not an easy job. The task of data collection beings after a research problem has been defined and research design/plan chalked out. While deciding about the method of data collection to be used for the study, the researcher should keep in mind two types of data primary and secondary. These two sources of requiring data are as follows-

1. Primary Sources of Data:

        The primary data are those that are collected a fresh and for the first time and thus happen to be original in character. In another direction, I can say that primary data are those that are originated by the researcher for the specific purpose of addressing the research problem. The data carry the real characters that are expected by the researcher. To conduct the research these data are used as raw material in the research. The source from where primary data are collected is called primary sources. It is the main source for collecting data from the field. I have collected data from primary sources to make my research work up to date. For this purpose I have collected data directly from customer and various officers of Glasstech Limited. I have collected primary data by the following methods-

a) Survey Method:

        Survey method means a structured questionnaire given to a sample of a population and designed to elicit specific information from respondents. Respondents are asked a variety of questions regarding their behavior, intentions, attitudes, awareness, motivations, and demographic and lifestyle characteristics. Survey questionnaires may be administered in four major modes.

  •  Telephone Survey Method:

        The data that are collected by telephone or mobile phone is called telephone interview. In this method, communication is maintained with responded group and asked a set of questions. In this case, the interviewer uses a written questionnaire and records the answer in written. But it is very costly method. As a student, I am not more capable to expanding this big amount. Since it is more expensive, so I have little used this method.

  •  Personal interview:

        Data that are collected by personal interviewing from home, central location intercept, or any other places. Personal interview method requires a person known as the interviewer asking questions generally in face-to-face contact to the other person. I have collected data by personal interview for my research work. Because, it is not expensive and time-consuming process. One of the most notable advantages of this method is that the reaction of the respondents can be known directly.

  • Mail Survey Method:

        The data that are collected by mail is called mail survey. In the traditional mail interview questionnaires are mailed to pre selected potential respondents. A typical mail interview package consists of the outgoing envelope, cover, letter, questionnaire, return envelope, and possibly an incentive. The respondents may not response under this method. This method is time consuming and expensive. So I didn’t use this method.

  • Electronic Interview Method:

        The data which are collected through e-mail and internet is called electronic interview method. Here, the respondents must be highly educated. It is an expensive method. So, I have used little bit this method.

b) Observation Method:

        Observation involves recording the behavioral patterns of people, objects, and events in a systematic manner to obtain information about the phenomenon of interest.

        In this case the observer doesn’t ask any question to the person. Here, information is noted by observing the behavior of any person in the occurred situation. Information is collected and written from the past events.

        There are some problems in this method. Such as the selected perception of the researcher that biases the collected data, time consuming expensive and there are some personal conducts that are really difficult to observe/perceive. For these problems, I didn’t use observation method in my data collection process.

2. Secondary sources of Data:

        When data are collected from the sources that have been collected earlier is called secondary sources. Secondary data means data that are already available i.e., they refer to the data that have already been collected and analyzed by someone else. Secondary data may either be published or unpublished data. These data have already been passed through the statistical process and used in the research or any other purposes. Secondary data are collected from previous research works, reports, publications and various existing sources. Secondary data are very important to conduct an efficient research and to have fruitful results. I have collected these data from the following sources –

Internal sources:

  • Ø Company profiles.
  • Ø Daily sales records.
  • Ø Prior research reports.
  • Ø Any information regarding Glasstech Limited.
  • Ø Printed works.
  • Ø Company’s leaflet, annual report, and other publications.

External sources:

  • Ø Several types of papers and periodicals.
  • Ø Journals and magazines.
  • Ø Government reports.
  • Ø Newspapers.
  • Ø Internet services.

Questionnaire Preparation:

        Questionnaire is the set of questions that have been fixed earlier on the basis of which the respondents give the answer of the questions. I was very careful when I prepared the questionnaires. Question wording is perhaps the most critical and difficult task in developing questionnaires.

        Especially wording of the questionnaires was emphasized because the clear answers depend on the clarity of the questionnaires. At the time of preparing questionnaires a great care has been taken about the sequence of the questions. The matters that I have emphasized carefully are given below:

  • Ø Using simple language.
  • Ø Use ordinary words.
  • Ø To be specific as possible.
  • Ø Avoid dual statements.
  • Ø Avoid unwanted question positive and negative.
  • Ø Avoid lengthy question.
  • Ø Deduct leading question.
  • Ø Avoid estimated question.
  • Ø Deduct ambiguous question.
  • Ø Avoid generalization.
  • Ø Avoid implicit alternatives.

Except those I have used some close-ended questions so that the respondents can give the answer easily and consequently helped for tabulation. I also used open-ended questions so that the respondents can express their judgment on the questionnaires.

Literature Review

       As per I know there is no remarkable research in upper level on this field. But some persons have taken part in research on this field for their university academic purpose.

       Hossain, Misbah remarks that Glass Company should improve their product variation. He also remarks that there is no perfect competition because of oligopoly market.

       Hassan, Rakibul describes that most of the glass companies’ primary objective is profit maximization not customer satisfaction. But these types of companies have to understand for their bright future in glass industry that profit will come automatically if they can satisfy the customers. May be per unit profit will be decreased but total profit will be increased.

       Gofran, Mazumder Fazle remarks that glass market is more centralized in Bangladesh, though market growth rate is high and actual & potential customers are available all over the country.

Justification of the study:

           At present glass & its relevant products are so important to make or decorate buildings, homes, furniture and vehicles. For high-rise multistoried buildings, glass is very essential to reduce the building’s weight. As a result building becomes long lasting.

           At present many people are directly & indirectly with glass industry. Glass industry can be considered as an important growth providing employment opportunity in Bangladesh. So, glass industry can contribute the economy of Bangladesh.

           If I analyze the TQM (Total Quality Management) and findings some things new, it will be easier for the Glastech Limited how to satisfy the buyers by maintaining overall quality. It will be helpful for the future researchers to do research on this field. It will also create awareness to the potential buyers & potential entires of the glass industry. This research also helps Glasstech Limited as well as the Glass Industry to operate their marketing activities efficiently to increase sales.

Limitation:

  • Sample size of the respndents was not very large. If it is larger than better result might come.
  • Some respondents might not give honest answer.
  • Samples are selected on the basis of convenience.
  • Some of the respondents were not interested in answering the questionnaire.
  • Lack of my experience, some error may be happened.
  • As I am a student, so I don’t have enough money to bear the full expenses of such research work. I have faced the shortage and hindrance of money to do this research work. Because, the expenses of traveling different areas or appointing workers to perform the activities to complete this program is so high, this was not fully affordable for me. So I could not able to collect all necessary information.

Time Schedule:

           To prepare this report the following times has taken:

   Literature review & secondary information……… 20 days

           Data collection…………………………………………. 35 days

           Data analysis & interpretation………………………. 10 days

           Report writing…………………………………………..       9 days

           Computers compose        ………………………………….  3 days

           Binding……………………………………………………  3 days

            Total Time……………………………………………….. 80 days

Product Situation

        Glasstech Limited imports a lot of glass items & its accessories and they produce some products by using glass items & its accessories as raw material. The name of product, model, price etc are given below as tables:

Door items: Glasstech Limited produce glass door by using glass & related accessories as raw material. Glasstech Limited imports these raw materials from Thailand and Indonesia.

Glass Door

Product Name

Quantity

Size

Selling Price (Tk)

10 mm Swing door

(Full Package)

1

42” x 84”

14000

1

36” x 84”

13000

1

30” x 84”

11500

1

30” x 78”

11500

1

30” x 82”

11500

1

36” x 82”

12000

1

36” x 90”

18000

12 mm Swing door

(Full Package)

1

36” x 84”

14500

1

42” x 84”

18000

1

30” x 84”

14000

Source: Glasstech Limited

     Door accessories: To produce a swing door the following accessories are needed. Accessories are imported from Thailand and Indonesia.

Door Accessories (Fittings)

Accessories

Item

Capacity

Quantity

Selling Price (Tk)

Fittings

Floor Hing

20 mm

1

3500

25 mm

1

4500

Top Fittings

1

1500

Bottom Fittings

1

1500

Lock Fittings

1

2800

Source: Glasstech Limited

Door Accessories (Handle)

Accessories

Model

Size

Quantity

Selling Price (Tk)

Door Handle

HD-101

12”

1

1200

HD-101

18”

1

2000

HD-113

12”

1

4000

HD-117

18”

1

3500

HD-118

12”

1

3500

HD-127

18”

1

4500

HD-128

18”

1

4500

HD-129

18”

1

4500

HD-132

18”

1

4500

HD-137

12”

1

6000

HD-140

18”

1

4500

HD-141

18”

1

4000

HD-173

48”

1

9000

Source: Glasstech Limited

Shower Door

Product Name

Quantity

Size

Selling Price (Tk)

Shower Door

(Full Package)

1

700 x 2000 mm

18000

1

800 x 2000 mm

20000

1

750 x 1850 mm

18000

1

750 x 1950 mm

19000

Source: Glasstech Limited

Accessories (Shower Door)

Product Name

Item

Model

Angle

Quantity

Price (Tk)

Accessories (Shower Door)

Wall Hings

SW 301

1

3000

SW 303A

1

4000

SW 305

1

3500

Handle

HD-110

1

2500

Glass Hing

SW 302

180º

1

5000

SW 304

180º

1

4000

SW 3041

135º

1

5000

SW 3049

90º

1

6000

SW 3061

135º

1

5000

Source: Glasstech Limited

Wall Glass: Wall glass is such type of glass that is used instead of brick’s wall as building’s outfit. Glasstech Limited imports such type of glass & its accessories from China, Taiwan and Indonesia.

Wall Glass Accessories

Product Name

Quantity

Model

Selling Price (Tk)

Connection Accessories

1

GF 11L

1500

1

GF 11R

1500

1

GF 12

3000

1

GF 13

3500

Spider Connected Accessories

1

SD 044

7000

1

SD 333

7000

1

SD 444

8000

1

SDC 202

5500

1

SDC 444

9000

Source: Glasstech Limited

Glass Block (Glass Brick): Glass Block is one kind of glass product. This product is used instead of general bricks. Mainly this type of product is used for beautification. Glasstech Limited imports four types of blocks (Clear Block, Small Clear Block, End Clear Block and Colour Block) from Indonesia. At present, this product is very much popular for beautification.

Glass Block (Glass Brick)

Product

Model

Size

Quantity

Price (Tk)

Clear Block

Wave

Standard

1

165

Quadra

Standard

1

165

Toba

Standard

1

165

Candy

Standard

1

165

Pura

Standard

1

165

Bima

Standard

1

165

Ocean View

Standard

1

165

Bubble

Standard

1

165

Broma

Standard

1

165

Vista

Standard

1

165

Diamond

Standard

1

165

Double Star

Standard

1

165

Small Clear Block

Wave

145 x 145 x 80 mm

1

175

Quadra

145 x 145 x 80 mm

1

175

Wave

190 x 90 x 80 mm

1

175

Toba

190 x 90 x 80 mm

1

175

Candy

190 x 90 x 80 mm

1

175

End Clear Block

Wave

Standard

1

500

Toba

Standard

1

500

Colour Block

Wave Dark Blue

Standard

1

250

Wave Dark Green

Standard

1

250

Wave Dark Bronze

Standard

1

250

Wave Frosted Blue

Standard

1

250

Quadra Dark Blue

Standard

1

250

Colour Block

Quadra Light Blue

Standard

1

250

Quadra Bronze

Standard

1

250

Toba Dark Blue

Standard

1

250

Toba Light Blue

Standard

1

250

Toba Bronze

Standard

1

250

Toba Green

Standard

1

250

Ocean View Blue

Standard

1

250

Ocean View Bronze

Standard

1

250

Source: Glasstech Limited

Alluminium Composite Panel: It is an alluminium board. This board is used for building outfit. It pasted on the wall plaster for beautification. It is free from fungus and iron-oxide. It imports from South Korea.

Alluminium Composite Panel

Brand

Model

Colour

Size

Quantity

Price (Tk)

“Alcotex”  and  “Alcotop”

AT-104 MT

Mat Silver

48” x 96”

1

230

AT-104 MT

Mat Silver

48” x 120”

1

255

AT-303 MT

Bright Silver

48” x 96”

1

260

AT-101

Golden

48” x 96”

1

260

AT-101

Golden

48” x 120”

1

260

AT-301

Bronze

48” x 96”

1

260

AT-302

Green

48” x 96”

1

260

AT-108

Red

48” x 96”

1

260

AT-306 MT

Blue

48” x 96”

1

260

Source: Glasstech Limited

Automatic Door: At present, many organizations and homes use automatic glass door. This door is automatically open and close. When a person comes near the door, sensor identifies the person than the door open. Glasstech Limited imports Automatic Glass Door from Sweden.

Automatic Glass Door

Product

Thickness

Size

Quantity

Price (Tk)

Automatic Glass Door

(Full Package)

10 mm thickness glass

950 x 2400 mm

1

248000

950 x 2500 mm

1

248000

950 x 2300 mm

1

248000

950 x 2200 mm

1

248000

950 x 2140 mm

1

245000

800 x 2200 mm

1

246000

800 x 2300 mm

1

246000

800 x 2400 mm

1

246000

760 x 2500 mm

1

245000

1050 x 2400 mm

1

250000

1050 x 2500 mm

1

250000

Source: Glasstech Limited

Hang Door: Hang door is one type of sliding door connected with some roller hanger in order to sliding. Hang Door is very popular in Bangladesh at present. Its demand is increasing day by day. Mainly hang door is used in office and shops. Its glass and related accessories is imported from Thailand, Taiwan, China, Malaysia and Singapore.

Glass Hang Door

Product Name

Size

Quantity

Price (Tk)

10 mm Glass Hang Door

(Full Package)

42” x 84”

1

40000-50000

(Complete Set)

36” x 84”

1

30” x 84”

1

36” x 78”

1

40” x 78”

1

30” x 78.7”

1

36” x 78.7”

1

40” x 84”

1

Source: Glasstech Limited

Glass Hang Door Fittings

Product

Model

Quantity

Price (Tk)

Roller Hang

H-73W

1

5000

Roller Hang

H-100

1

4500

Side Mount

SM-15

1

700

Top Mount

1

1200

Bottom Mount

BG-15

1

700

Alluminium Section

1

10000

End Stop Holder

ESH-15

1

1000

Source: Glasstech Limited

Glass Sheet: Glasstech Limited imports glass sheet. They sell glass sheet as a full sheet or as square feet. Glass Sheet is imported from China, Indonesia, Taiwan and Belgium.

Glass Sheet (Reflective)

Product

Colour

Size

Imported Country

Price (Tk)

(Per Square Feet)

6 mm Reflective Glass

Deep Green

130” x 84”

China

87

120” x 84”

China

87

120” x 84”

Indonesia

165

126” x 84”

Indonesia

165

French Green

130” x 84”

China

100

Ocean Blue

130” x 84”

China

88

120” x 84”

China

88

120” x 84”

Indonesia

88

Golden Deep

130” x 84”

Taiwan

175

120” x 84”

Taiwan

175

Golden Light

126” x 84”

China

86

120” x 84”

China

85

130” x 84”

China

87

Dark Blue

120” x 84”

China

88

120” x 84”

Indonesia

170

130” x 84”

China

88

Silver

120” x 84”

Indonesia

170

Super Silver Dark Blue

126” x 88”

Belgium

165

Super Silver Pink

126” x 88”

Belgium

175

Golden Pink

126” x 88”

Belgium

175

Silver Light Priver Blue

126” x 88”

Belgium

175

Super Silver Clear

126” x 88”

Belgium

160

Super Silver Green

126” x 88”

Belgium

175

Source: Glasstech Limited

Glass Sheet (Clear Glass)

Product

Thickness

Size

Imported Country

Price (Tk)

(Per Square Feet)

Clear Glass

8 mm

120” x 84”

Thailand

90

10 mm

144” x 84”

Thailand

110

12 mm

144” x 84”

Indonesia

180

120” x 84”

Indonesia

180

15 mm

130” x 84”

Belgium

450

36” x 130”

Belgium

450

19 mm

84” x 130”

Belgium

750

48” x 130”

Belgium

750

36” x 130”

Belgium

750

Source: Glasstech Limited

Glass Sheet (Bronze Glass)

Product

Thickness

Size

Imported Country

Price (Tk)

(Per Square Feet)

Bronze Glass

5 mm

54” x 84”

Indonesia

65

8 mm

126” x 84”

100

10 mm

144” x 84”

130

Source: Glasstech Limited

Glass Sheet (Mirror Glass)

Product

Thickness

Size

Imported Country

Price (Tk)

(Per Square Feet)

Mirror Glass

4 mm

72” x 84”

China

55

72” x 84”

China

60

5 mm

72” x 84”

China

75

78” x 126”

Belgium

220

Source: Glasstech Limited

Glass Sheet (Others)

Product

Model

Model

Country

Price (Tk)

(Per Square Feet)

5 mm Glass Sheet

Dark Blue

120” x 84”

Indonesia

64

130” x 84”

Indonesia

64

Ford Blue

130” x 84”

Indonesia

64

Green

130” x 84”

China

62

Clear Kara Thai

72” x 84”

China

60

D.G Victoria

72” x 84”

China

60

72” x 96”

Indonesia

65

Clear Winner

72” x 84”

China

57

Clear Light

60” x 96”

China

60

Source: Glasstech Limited

Vehicle Glass: Glasstech Limited imports vehicle glass from Indonesia. But they import only windshield as vehicle glass for bus.

Vehicle Glass

Product

Size

User

Quantity

Price (Tk)

Windshield

60” x 100”

Volvo & Hino A/C Bus

1

20000

60” x 96”

Hino Bus

1

18000

48” x 96”

Tata Bus

1

17000

42” x 84”

Mini Bus

1

16000

36” x 82”

Mini Bus

1

15000

Source: Glasstech Limited

Table Top: Glasstech Limited imports table top as well glass table from Thailand.

Table Top

Product

Thickness

Cutting

Size

Price (Tk)

(Per Unit)

Dining Table

12 mm

Square

3.5’ x 6.5’

16000

15 mm

Square

3.5’ x 6.5’

18000

12 mm

Oval

4’ x 8’

20000

15 mm

Oval

4’ x 8’

22000

19 mm

Victoria

4’ x 8’

60000

Tea Table

10 mm

Square

30” x 48”

9000

12 mm

Victoria

30” x 48”

15000

10 mm

Oval

24” x 36”

5000

10 mm

Round

24” x 36”

4500

Source: Glasstech Limited

Procurement

Glasstech Limited procures their product from Belgium, Malaysia, Indonesia, Thailand and China by ship. They import a huge amount of glass & glass related product at a time. As a result per unit cost is comparatively low. So, Glasstech Limited can consume cost advantage. To import product, Glasstech Limited follows some procedure. At first, Glasstech Limited places the order. Then foreign glass companies receive the order and send a feedback. Then exchange rate is fixed up, because of fluctuating exchange rate and a huge time is needed in total procurement procedure. Then bank issue L.C (Letter of Credit) in favour of exporter as Glasstech Limited. Then exporter send product by ship to Chittagong port. Then Glasstech Limited receives the containers by doing tax & other formalities. Then they carry the containers from Chittagong to Dhaka. Then products are stored in warehouse and some products transferred to showroom for display. After shipment of the containers foreign companies are not liable for any demurrage of glass. So, Glasstech Limited has to take all liabilities after shipment. In each time, ±10% glasses are broken.

Table: Glass Demurrage

Year

Broken Rate

2003

8%

2004

7%

2005

11%

2006

12%

2007

9%

Source: Glasstech Limited

Problem:

1. Glasstech Limited imports huge amount product. As a result, sometimes they have to face maintenance problem.

2.  For long time product store in warehouse, cost become increases.

3. For purchasing huge amount product, there is high risk for accident.

4.  Huge time is needed to import.

5.  Demurrage rate is not stable.

Recommendation:

1. Glasstech Limited should try to improve material management.

2. Cost should be minimized.

3. Should be more careful in caring, loading and unloading time from Chittagong to Dhaka.

Production

       Glasstech Limited imports raw material from Belgium, Indonesia, China, Thailand and Hong Kong. For an example, if Glasstech Limited wants to produce an Automatic Sensor Door, they have to imports (procure) 10mm Tempered Glass, Floor Hinge, Top Fittings, Bottom Fittings, Lock Fittings, Door Handle, Sensor Fittings and Electricity Backup System. Then they assemble these in order to produce a complete Automatic Sensor Door. Glasstech Limited also produces Glass Door, Shower Door, Paint Glass, Glass Dining Table & Tea Table and Outdoor & Indoor glass decoration. To make these product they have to use high technology and needs efficient worker & management. Glasstech Limited also provides after sells service. So, in these processes from importing to selling, quality have to maintain to satisfy the customers as well as Total Quality Management.

Packaging Section:

Wrapping: In this unit glasses & its related equipments are individually covered by wrapper.

Tuck Loading: In this stage some (convenience) rapped glasses & its related equipments are inserted in a packet.

Cellophanning: Here tuck loaded packets are folded by polithine paper called cellophane. The cover is given to prevent moisture.

Carton packing: Lastly glasses & its related equipments are packed by carton packet according to their convenience.

Quality Control System

         In modern business concept quality control is must. Without quality control a business organization cannot stay in an industry for a long run. Because, business is much competitive at present. Glasstech Limited also maintains quality. They control quality in manually. But, their quality control is in the satisfactory level. Customers are satisfied on their quality control. Glasstech Limited control quality in every step from import to sell. Glasstech Limited also provide after sales service. This is partially exceptional. Because, only a few farms provide after sales service in glass industry.

From my survey I found the following information:

My question to the customers was “what is your satisfaction level about the product of Glasstech Limited”. The customers provided the following information.

From the survey report, it is found that only 1% customers are dissatisfied, 8% customers are neither satisfied nor dissatisfied, 34% customers are satisfied, 46% customers are very satisfied and 11% customers are delighted.

So, it can be said that according to the customers’ opinion, the Quality Control System of Glasstech Limited is in the satisfactory level.

Recommendation:

1. Though Quality Control System of Glasstech Limited is in the satisfactory level but they should try to improve their quality. Because, it is a continuous process.

2.  The time of after sales service may increase.

Electricity Failure:

For electricity failure the working activities of Glasstech Limited sometimes hampered. Power failure increases wastage and destroys machine hour. Though Glasstech Limited belongs a generator but it is unable to fulfill factory’s demanded power. For this reason BBFL may take following steps-

1. They could request to PDB authorities not to stop power supply with in working hour.

2. Generating system should be more modernized for getting desired power supply.

Wastage:

In production and delivery period, some products become wastage. Although glass products are a bulky product but its production process is very complex. So, a little carelessness can make heavy wastage. It occurs when glass sheets are cut, hole or caring time. Side by side, lack of appropriate measurement some glasses are lost. It is known as hidden loss. For an example, if a glass sheet is cut into 10 pieces in a certain size, here some glass will be destroyed normally. Here, it is possible that a glass sheet can cut into 11 or 12 pieces in same size by using most appropriate calculation. So, here hidden wastage is one or two pieces. Glasstech Limited always tries to minimize their wastage rate.

Here, last five years wastage rate are given bellow: 

Wastage of Glasstech Limited

Year

Wastage Rate

2003

4%

2004

2.6%

2005

1.9%

2006

1.1%

2007

1.3%

Source: Glasstech Limited

The causes of wastage are as follows:

1. The process loss is 3%, which is recognized in the context of      Bangladesh.

2. Sometimes, Power failure causes wastage.

3. Lack of proper concentration of workers.

4. Sometimes, lack of appropriate protection.

Recommendation:

1. Although Glasstech Limited’s wastage rate in the minimum level but they should try to more minimize their wastage rate in order to more quality control.

2. The operators should be more conscious about their duty.

3. The staffs of quality control section have to monitor frequently.

4. Glasstech Limited can arrange a monthly meeting to more enhance their operator’s consciousness about decreasing wastage glass.

Marketing Activities

        According to Philip Kotler; “Marketing is a social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others”. Every body knows that today’s business is very much competitive. In this situation if any business enterprise wants to survive successfully, they must have to follow marketing theories, principles, tools and techniques. As a result, Glasstech Limited follows marketing theories, principles, tools and techniques. They have an effective marketing plan. Now I would like to give a brief idea about Glasstech Limited’s marketing activities according to 4P.

Product: Product is the solution of customers. According to Philip Kotler; “Product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or needs. It includes physical objects, services, persons, places, organizations and ideas”. The production department of Glasstech Limited considers customer based product quality standard. The standard of all glass products are approximately same according to the product category. If there is a chance any deficiency, Glasstech Limited takes quickly all possible initiative by collecting market information regarding defective glass and glass items. Glasstech Limited sells various category glass products like Swing Door, Door Fittings, Door Handle, Shower Door, Shower Door Accessories, Spider Connected Accessories, Glass Block (Glass Brick), Automatic Glass Door, Alluminium Composite Panel, Glass Hang Door, Glass Hang Door Fittings, Glass Sheet (Reflective), Glass Sheet (Clear Glass), Glass Sheet (Mirror Glass), Table Top and Vehicle Glass. So, Glasstech Limited provides to the customers varieties type of product that I have mentioned details in previous chapter.

From this graph, I can say that according to the customers’ opinions about product variation; only 6% customers are neutral, 42% says good, 42% customers says very good, 8% customers says excellent and nobody is dissatisfied.

So, overall condition of product variation of Glasstech Limited is very good and customers are satisfied.

Recommendation:

Although Glasstech Limited’s product variation is very good but they should to do better, because product development is an endless process.

Price: Price is the most important factor of 4P. Only price can return the investment with profit. Glasstech Limited follows a philosophy in pricing which is “Effective price is depend on market than the cost”. They fix up price according to the market demand and customer satisfaction. The price of Glasstech Limited’s products which I have mentioned the previous chapter. Middlemen cannot do easily price fluctuating because, huge middlemen are available in imported glass market and market is very competitive in retailing level.

From this graph, I can say that according to the customers’ opinions about price satisfaction of Glasstech Limited; only 6% customers are not satisfied, 63% says satisfied, 14% customers says very satisfied, 3% customers are delighted and 14% is neither satisfied nor dissatisfied.

So, overall condition of product variation of Glasstech Limited is very good and customers are satisfied.

Recommendation:

Glasstech Limited should find out the cause why 14% customers are neutral & 6% customers are dissatisfied and try to convert them into satisfied customer by all means.

Channel of Distribution: Every organization reaches its product to the present and potential customer in order to sell through some channel or media; this is known as channel of distribution. Glasstech Limited distributes their product through some channels for their sales force. Glasstech Limited follows the following channel of distribution policies:

Zero Level Channel; Producer ® Consumer.

One Level Channel; Producer ® Retailer ® Consumer.

Two Level Channel; Producer ® Wholesaler ® Retailer ® Consumer.

Problem:

1. Glasstech Limited has no sales dealer or selling agent.

2. There are only two warehouses at Dhaka. So, customers have to      purchase of product form Dhaka. As a result, time is wasted.

Recommendation:

1. Glasstech Limited may appoint sales dealer or selling agent.

2. For customers’ time & cost saving, the number of warehouses may   increase.

Promotion: Today’s Business is very much competitive and every business enterprise tries to attract the consumers in favour of them, therefore promotional program plays a vital role for competing them properly. As a business enterprise Glasstech Limited also conduct some promotional programs.

The several promotional programs of Glasstech Limited are as follows:

1. Advertising on News Paper.

2. Personal Selling.

3. Sales Discount.

4. Distributing Wall Calendars.

5. Distributing Wall Clocks.

6. Distributing Diary.

7. Distributing Sample.

All this activities has been performed regularly. Glasstech Limited has developed strong brand awareness in imported glass market as well as in glass industry.

The promotional programs are the most important factor for any business and non-business organizations. The advertising should be the proper way for attracting to the present and potential customers by presenting product related attributes. The advertising amount of Glasstech Limited is higher and the other promotional activities are operated regularly.

For facing the competition and developing own brand image more successfully Glasstech Limited can be performed their some additional promotional program in ways that are mentioned bellow-

1. Attractive rewards to the retailers if the retailers can be able to achieve sales target in a certain period.

2. Appointing sales representatives according to requirement.

Marketing is the most important factor in the prevailing competitive market for survives successfully. Marketing functions of Glasstech Limited are good. But they should try to develop more & more. Because, competitors are taking new strategies in time to time, place-to-place and customer-to-customer.Sales Analysis

Glasstech Limited sells their product to customer frequently. They analyze their sales records monthly. If their sales are decreased, they find out what is the cause behind them and take the corrective measure. The sales records of 2007 (January- December) and 2008 (January- June) of Glasstech Limited are given bellow: 

Glasstech Limited

Monthly Sales Statement for 2007 (Month wise)

Sl. No

Month

Sales Amount in Tk

Remarks

1

January-07

47,29,396.00

 

2

February-07

47,83,055.00

 

3

March-07

41,26,933.00

 

4

April-07

63,66,903.00

 

5

May-07

33,70,922.00

 

6

June-07

48,52,084.00

 

7

July-07

74,21,162.00

 

8

August-07

60,40,503.00

 

9

September-07

54,63,753.00

 

10

October-07

26,06,002.00

 

11

November-07

60,20,910.00

 

12

December-07

51,05,142.00

 

Total Sales-2007

6,08,86,765.00

 

Source: Sales Records of Glasstech Limited

Per Month Sales: 6,08,86,765/12=50,73,897.00 Tk. (in average)

Glasstech Limited

Monthly Sales Statement for -2008 (Month wise)

Sl. No

Month

Sales Amount in Tk

Remarks

1

Jan-08

88,49,233.00

 

2

Feb-08

40,04,569.00

 

3

Mar-08

50,54,004.00

 

4

Apr-08

60,58,196.00

 

5

May-08

57,63,370.00

 

6

Jun-08

1,00,84,770.00

 

7

Jul-08

 

8

Aug-08

 

9

Sep-08

 

10

Oct-08

 

11

Nov-08

 

12

Dec-08

 

Total Sales-2008

3,98,14,142.00

 

Source: Sales Records of Glasstech Limited

To find out the sales trends of Glasstech Limited, graphical analysis is the best option. By graphical analysis, we can understand in one sight the overall sales conditions. Here, I use “Line Chart” in order to analyze the sales conditions instead of “Bar Chart”. I think, for any trend analysis “Line Chart” is better than “Bar Chart”.

 

From this chart, it can be said that the sales trends of Glasstech Limited is sometimes increasing and sometimes decreasing the total sales volume. Here, it is clear that when their sales volume is decreased than they are trying to increase sales volume and they become success to increase sales volume. Their sales conditions were poorest in October 2007 and highest in June 2008. Their best condition sales volume was from January 2008 to June 2008. Glasstech Limited should try to keep the last month of sales volume in future. So, at last it can be said that the overall sales condition of Glasstech Limited is better in the context of imported glass market as well as glass industry. In glass industry, demand is not stable. As a result, sales volume is fluctuating and price is also fluctuating.

Cash Flow Analysis

        Cash flow is one of most important tools of financial analysis of an organization. Cash flow indicates capability of an organization that how to use their liquid money. Cash inflow means cash receive and cash outflow means cash payment. Here, the difference between cash inflow & outflow is considered. By analyzing cash flow statement, it is easy to find out that what their current financial condition is. If Net Cash Flow is zero than it indicates that this organization has no ability to spend money with in a short time. If Net Cash Flow (inflow) is negative than it indicates that this organization has no ability to spend money without loan and if in this situation is occurred for a long run than it is very difficult to achieve expected profit. If Net Cash Flow (inflow) is positive buy amount is huge than it indicates that this organization has more idle money and if they invest it than some additional money will come. So, appropriate cash flow (inflow) is essential. Cash flow (inflow) helps to meet up the current expenses. Net Cash Flow (inflow) of Glasstech Limited in September – 07 was Tk. 39,17,632/- and in October – 07 it was Tk. 36,77,764/-. So, they have huge amount of idle money. Their liquidity management is not in the satisfactory level.

Recommendation:

Glasstech Limited should invest their idle money to own organization or to others.

The Cash Flow statements of Glasstech Limited are as follows:

Glasstech Limited

Receipts & Payments (Cash Inflow & Outflow) Statement

For the month of September-07

Inflow( Dr.)

Outflow(Cr.)

Receipts

Amount In Tk. NBL Bank

Amount in Tk. DBBL Bank

Amount In Tk. (Cash)

Payments

Amount In Tk. NBL Bank

Amount In Tk. DBBL Bank

Amount In Tk. (Cash)

Opening Balance

16,44,161.96

18,74,005.76

74,305.00

Cash Deposit To National Bank A/C

24,92,000.00

Cash Deposit To

24,92,000

Cash Deposit To DBL Bank A/C

Cash Sale

20,28,466

Payment to R. M. International

25,00,000

20,86,000

Arman Engineering

1,00,000

Bank charges (T.T.Charge)

2,915

Al- Riyad Glass House

1,00,000

Carriage Inward (Truck Fair)

71,000

Ahmad Glass, B Baria

18,500

Carriage Outward (Pick-Up Van Fair)

1,220

Chowdhury Glass

2,00,000

Conveyance Expense

329

Chittagong glass

3,00,000

Currier & Fax charge, Postage

57

Oishi Thai 

1,00,000

Donation ( Mohakhali Mosque)

2,000

Trade Consult Aluminium 

1,50,000

Fitting charge

10,000

Euro Bangla 

2,00,000

Entertainment Expenses

730

Glass Point 

1,00,000

Godown Maintenance

130

Glass View 

75,000.00

House Rent(show room+godown)

67,639

Mizan thai & Aluminium 

1,90,000

Loading & Unloading Labour Cost

12,950

Mohin glass

1,00,000

Salary & Allowance

52,160

Mr. Pannu

News Paper bill

182

Mr. Rafiuqe

90,000

Cutting charge

600

Lotif Tower

2,00,000

Office Maintenance

91

New glass center

50,000

Photocopy

134

Noor uddin & sons

1,00,000

Sale Refund (Cash)

15,500

Rahman Aluminium

1,10,000

Telephone & Mobile Bill

2,522

Rahmania glass

1,00,795

Water Bill

600

Saad glass, Sylhet

5,43,000

Printing & stationary

2,608

Samata Enterprise

50,000

Night bill

330

Shahjalal Glass House

2,00,000

Others expenses

100

Shams Enterprise

Local Purchase

62,000

Padma glass

95,000

80,000

MD’s Cash Withdrawal

1,54,430

Hive Interior

1,00,000

Cash Payment to Mr. Hanif

5,000

 

Wooden Box

1,275

 

Repair  & Maintenance (Com)

3,100

 

Total Payments/Expenditures

25,02,915.00

20,86,000.00

29,58,687.00

 

Balance C/F (Cash in hand/Bank)

16,51,746.96

20,76,005.76

1,89,879.00

Total Received

41,54,661.96

41,62,005.76

31,48,566.00

Total Received

41,54,661.96

41,62,005.76

31,48,566.00

Source: Records of Glasstect Limited

Glasstech Limited

Receipts & Payments (Cash Inflow & Outflow) Statement

For the month of October-07

Inflow ( Dr.)

Outflow (Cr.)

Receipts

Amount In Tk. NBL Bank

Amount in Tk. DBBL Bank

Amount In Tk. (Cash)

Payments

Amount In Tk. NBL Bank

Amount In Tk. DBBL Bank

Amount In Tk. (Cash)

Opening Balance

16,51,746.96

20,76,005.76

1,89,879

Cash Deposit To National Bank A/C

11,94,500

Cash Deposit To

11,94,500

Cash Deposit To DBL Bank A/C

Cash Sale 

14,30,974

Payment to R. M. International

20,00,000

15,25,000

14,000

Ahmad Glass, B Baria 

Payment to R. M. Interlining

2,00,000

Al Momin tiles, Khulna 

1,02,500

Advance for Godown Tin Shed

1,00,000

Al- Riyadh Glass House 

50,000

Bank charges (T.T.Charge)

2,340

50

Arman Engineering 

1,00,000

Carriage Inward (Truck Fair)

32,900

Blue water, Sylhet

50,750

Carriage Outward  (Pick-Up Van Fair)

2,750

Chittagong glass 

80,000

Conveyance Expense

262

Chowdhury Glass 

3,00,000

Currier  Fax & E-mail  charge

675

Desh Builders 

50,000

Donation (Mohakhali Mosque)

2,000

Euro Bangla 

1,00,000

Fitting charge

1,675

Five Star 

40,000

Entertainment Expenses

700

Glass fair 

50,000

Eid Trip

3,600

Glass Point

1,50,000

House Rent(show room+godown)

66,313

Glass Vision

1,00,000

Loading & Unloading Labour Cost

6,910

LotifTower

Salary & Allowance

50,483

Mohin glass

1,00,000

1,00,000

Eid festival bonus for Eidul fetor

62,000

Mr. Mithu

2,50,000

50,000

News Paper bill

254

Mr. Rafiuqe

1,00,000

Cutting charge

1,000

New  glass center

50,000

Godown  Maintenance

35

Real N Royal

25,900

Photocopy

10

Shafique hardware

50,000

Sale Refund ( Cash)

34,900

Shahjalal Glass House

4,00,000

Telephone & Mobile Bill

9,575

ThaiPalace

14,700

Water Bill

360

Tillottoma

50,000

Local Purchase

6,400

United Glass

1,92,000

Cash Withdrawal by M.D.

1,00,000

 

Computer Consumable

1,800

 

Wooden Box

500

 

Phone Repairing

200

 

Total Payments/Expenditures

20,02,340.00

15,25,050.00

18,93,802.00

 

Balance C/F (Cash in hand/Bank)

8,58,606.96

27,92,105.76

27,051.00

Total Received

28,60,946.96

43,17,155.76

19,20,853.00

Total Received

28,60,946.96

43,17,155.76

19,20,853.00

Source: Records of Glasstech Limited

Financial Statement Analysis

       Financial Statement is the mirror of a business organization. Financial Statement indicates the total assets & liabilities of a business organization. It also indicates what type of assets & liabilities they have. By analyzing a financial statement, investors or outsiders of a business organization can know the actual financial conditions, which are the potentialities of sustain for long run and others future probability of that business organization.  From the Financial Statement/Closing Statement 2006 and 2007 of Glasstech Limited, we have find out that their short-term & long-term capital, current assets & current liabilities, opening & closing stock and fixed assets. Their working capital is increased, they have no any long-term liabilities and their current assets are also increasing. In one ward, the financial condition of Glasstech Limited is in the satisfactory level. There is a less chance to fall into financial crisis over night.

The Financial/Closing Statements 2006 and 2007 of Glasstech Limited are as follows to next pages:

Glasstech Ltd – Dhaka

Closing statement of Glasstech Ltd- Dhaka as 31st December, 2006

[1st July, 2006 to 31st December, 2006]

PARTICULARS

AMOUNT (Tk.)

PARTICULARS

AMOUNT (Tk.)

CAPITAL AS ON 30.06.06

24,24,887.37

 CLOSING STOCK OF 31.12.2006

4,19,94,650.00

PAYABLE TO R.M. INTERNATIONAL

5,44,74,504.41

  

 

[UPTO 31 DECEMBER -2006]

 

 MARKET OUTSTANDING/ARREAR

1,24,47,039.00

 

  

 

 

 BANK BALANCE

 

 NATIONAL BANK

1,75,931.96

 

 

 DUTCH BANGLA BANK

12,79,864.71

14,55,796.67

 

 CASH IN HAND

 

1,55,124.00

CAPITAL AS ON 30.06.06

24,24,887.37

 ADVANCE

CAPITAL INCREASED [JUL/06-DEC/06]

12,63,217.89

12,63,217.89

 SHOW ROOM ADVANCE

12,00,000.00

OPENING CAPITAL – 1ST JAN/07

36,88,105.26

 GODOWN ( MOHAKHALI MOSQUE)

9,10,000.00

21,10,000.00

  

  

  

5,81,62,609.67

  

5,81,62,609.67

 Source: Records of Glasstech Limited

Glasstech Ltd – Dhaka

Closing statement of Glasstech Ltd- Dhaka

AS on 31 December -2007

PARTICULARS

AMOUNT

PARTICULARS

AMOUNT

CAPITAL AS ON 01.01.07

36,88,105.26

 CLOSING STOCK OF 31.12.2007 

3,47,67,171.45

PAYABLE TO R.M. INTERNATIONAL 

4,38,41,028.98

  

 

[UPTO 31 DECEMBER -2007] 

 MARKET OUTSTANDING/ARREAR

90,58,252.00

Loan from Managing Director for Mosque Godown

3,82,000.00

  

 

  

 BANK BALANCE

  

 NATIONAL BANK

11,09,276.96

 

 

 Dutch Bangla Bank

16,86,953.76

27,96,230.72

  

 CASH IN HAND

 

1,20,158.00

CAPITAL AS ON 01.01.07

36,88,105.26

 ADVANCE

CAPITAL INCREASED [JAN/07-DEC/07]

20,30,677.93

20,30,677.93

 SHOW ROOM ADVANCE

10,00,000.00

 

 UNDER GROUND GODOWN

5,00,000.00

 

 TIN SHED GODOWN

4,00,000.00

OPENING CAPITAL – 1ST JAN/08

 

57,18,783.19

 GODOWN ( MOHAKHALI MOSQUE)

 

13,00,000.00

32,00,000.00

  

  

4,99,41,812.17

 

 

 

4,99,41,812.17

Source: Records of Glasstech Limited

Findings

         The research was limited within respondents in the Glasstech Limited & others. During the research I came to face different facts regarding the respondents’ attitude toward the TQM (Total Quality Management). Here I am stating those findings.

  • There were a total of 200 respondents who were surveyed. Among them 82% were male and 18% female respondents.
  • The income level of the respondents in a year is Tk. 200000/- to Tk. 1000000/- or above.
  • Educational status of the respondents was 6% of them were HSC passed, 60% was Graduate and 34% Post-graduate.
  • Respondents were carefully chosen from four different age classes- 12% of the respondents were 18-30 years old, 43% of them were 31-40 years old, 34% respondents were 41-55 years old and 11% respondents were 56 & above years old.
  • 22% customers have been using Glasstech Limited’s products for more than 10 years, 36% customers have been using for more than 5 years and 42% customers have been using for less than 5 years.
  • 28% customers have been purchasing from Glasstech Limited for more than 10 years, 31% customers have been purchasing for more than 5 years and 41% customers have been purchasing for less than 5 years.
  • In product satisfaction level, only 1% customers are dissatisfied, 8% customers are neither satisfied nor dissatisfied, 34% customers are satisfied, 46% customers are very satisfied and 11% customers are delighted.
  • Customers’ opinions about product variation is only 6% customers are neutral, 44% says good, 42% customers says very good, 8% customers says excellent and nobody is dissatisfied.
  • 62% customers are very satisfied and 38% are satisfied about the location of Glasstech Limited.
  • About the relationship with Glasstech Limited; 39% customers said good, 38% customers said very good and 23% customers said excellent.
  • About the Total Quality Management of Glasstech Limited; 6% customers said bad 47% customers said good, 38% customers said very good and 9% customers said excellent.
  • About the modern customer facilities of Glasstech Limited; 7% customers are neutral, 46% customers are satisfied, 34% customers are very satisfied, 6% said excellent and 7% customers are dissatisfied.
  • About the pricing of Glasstech Limited; only 6% customers are not satisfied, 63% says satisfied, 14% customers says very satisfied, 3% customers are delighted and 14% is neither satisfied nor dissatisfied.
  • 82% customers believe Glasstech Limited wants a first time customer becomes a life time customer and 18% are not.
  • About prevention of risk & uncertainty of Glasstech Limited; Only 8% customers said bad, 12% are neutral, 36% customers said good, 29% customers said very good and 15% customers said excellent.
  • 4% customers faced problem in purchasing time and 96% are not faced any problem in purchasing time.
  • About overall satisfaction to Glasstech Limited; only 3% customers are not satisfied, 63% says satisfied, 17% customers says very satisfied, 3% customers are delighted and 14% is neither satisfied nor dissatisfied.
  • Customers expect from Glasstech Limited; low price, timely delivery, discount, after sales service and price stability.
  • 39% customers transact with other glass farms and 61% customers transact only with Glasstech Limited.
  • The customers who transact with other glass farms; 7% said it is better than Glasstech Limited, 76% said similar and 17% said bad.

        Now, in the following section I am including the graphical representation of all the above mentioned findings and the response of the respondents regarding the various questions of the questionnaire.

Q3. Are you satisfied using Glasstech Limited’s products?

Excellent

Very Satisfied

Satisfied

Neither Good nor Bad

Dissatisfied

Very Dissatisfied

Worst

+3

+2

+1

0

-1

-2

-3

Q7. What is your satisfaction level about the location of it?

Excellent

Very Satisfied

Satisfied

Neither Good nor Bad

Dissatisfied

Very Dissatisfied

Worst

+3

+2

+1

0

-1

-2

-3

Q8. What is your consideration about the relationship with Glasstech Limited?

Excellent

Very Good

Good

Neither Good nor Bad

Bad

Very Bad

Worst

+3

+2

+1

0

-1

-2

-3

 Q9. What is your opinion about the Total Quality Management of Glasstech Limited?

Excellent

Very Good

Good

Neither Good nor Bad

Bad

Very Bad

Worst

+3

+2

+1

0

-1

-2

-3

 Q10. What is your observation about the modern customer facilities of Glasstech Limited?

Excellent

Very Good

Good

Neither Good nor Bad

Bad

Very Bad

Worst

+3

+2

+1

0

-1

-2

-3

Q11. What is your evaluation about the product variation of Glasstech Limited?

Excellent

Very Good

Good

Neither Good nor Bad

Bad

Very Bad

Worst

+3

+2

+1

0

-1

-2

-3

Q12. What is your evaluation about the pricing of Glasstech Limited?

Excellent

Very satisfied

Satisfied

Neither Good nor Bad

Dissatisfied

Very Dissatisfied

Worst

+3

+2

+1

0

-1

-2

-3

 Q14. What is your observation about prevention of risk & uncertainty of Glasstech Limited?

Excellent

Very Good

Good

Neither Good nor Bad

Bad

Very Bad

Worst

+3

+2

+1

0

-1

-2

-3

Q18. Do you overall satisfied to Glasstech Limited?

Excellent

Very satisfied

satisfied

Neither Good nor Bad

Dissatisfied

Very Dissatisfied

Worst

+3

+2

+1

0

-1

-2

-3

  Q22. How much popular it, from its competitors?

Excellent

Very Good

Good

Neither Good nor Bad

Bad

Very Bad

Worst

+3

+2

+1

0

-1

-2

-3

The following table consists of the total percentage of the various questions of the questionnaire and the respondents’ attitude toward the subject of the question- either positive, negative or no comment.

Q:-NO

-3

-2

-1

No Comment

+1

+2

+3

Positive

Negative

3

0%

0%

1%

8%

34%

46%

11%

91%

1%

7

0%

0%

0%

0%

38%

62%

0%

100%

0%

8

0%

0%

0%

0%

39%

38%

23%

100%

0%

9

0%

0%

6%

0%

47%

38%

9%

94%

6%

10

0%

0%

7%

7%

46%

34%

6%

86%

7%

11

0%

0%

0%

6%

44%

42%

8%

86%

0%

12

0%

0%

6%

14%

63%

14%

3%

80%

6%

14

0%

0%

4%

12%

28%

28%

28%

84%

4%

18

0%

0%

3%

14%

63%

17%

3%

83%

3%

22

0%

0%

17%

76%

7%

0%

0%

7%

17%

SWOT Analysis

       The SWOT analysis means to identify the firm’s internal strengths and weakness as well as its external opportunities and threats. From the previous discussion about the Glasstech Limited’s an overall picture or scenery has revealed to us.

SWOT means;

         S = Strength (Favorable internal factors of the organization)

        W = Weakness (Unfavorable internal factors of the organization)

         O = Opportunity (Favorable external factors of the organization)

         T = Threat (Unfavorable external factors of the organization)

Detail findings about the SWOT are presented below;

Strengths of the Glasstech Limited:

        Strength is ability of farms. By using it, a farm can achieve its target and competitive advantages. The existing strengths of this farm are as follows:

  1. Glasstech Limited has experienced person who has worked in the various institutions. So, they have gathered knowledge how the farm runs efficiently.
  2. Favourable working environment.
  3. Good relation between top to bottom.
  4. Available human resources.
  5. To have some skill labours who are very well trained.
  6. They have huge asset to invest.
  7. They have no liquidity problem.
  8. Employees are very much committed to their organization.

Weakness of the Glasstech Limited:

        Weakness is the internal and existing limitation of a farm for which they become unable to gain competitive advantages. Some weaknesses are as follows:

  1. It has no research and development activities.
  2. Lack of power supply to the production center and it has no own power system.
  3. Lack of rapid decision making.
  4. Traditional management system.

Opportunities of the Glasstech Limited:

        Marketing opportunity to a business farm means the area, where the farm will be able to perform its business activities with effectively and profitably. Such as;

  1. Whereas to have huge demand of glass products in Bangladesh. So, market can be expanded in the domestic country.
  2. Greater possibility to product diversification with quality.

Threats of the Glasstech Limited:

        Threats are an external obstacle or barrier for which a firm can’t achieve its predetermined goals. The major threats of this farm are as follows:

  1. Due to globalization the entry barriers are low in every industry. For why, competitors are increasing.
  2. Political unrest or instability is another threat of this organization. Because of Hartal and Political Violence, sales and production is hampered and it cannot supply the product at the right time.
  3. Increasing other glass organization’s domination.

        It is mainly depending on bank loan and government policies. Favourable policies may be changed by government in any time and bank may create pressure for paying bank loan and interest.

Gap Analysis

       Customer perceptions are subjective assessments of actual service experience. The following figure corresponds to two concepts: customer expectations and customer perceptions that play a major role in service marketing. Customer expectations are the standards of or reference points for performance, against which service experiences are compared, and are often formulated in terms of what a customer believes should or will happen.

         The sources of customer expectations consists of market controllable factors (such as pricing, advertising, sales promises) as well as factors that the marketer has limited ability to affect (innate personal needs, word-of-month communications, competitive offerings). In a perfect word, expectations and perceptions would be identical: customers would perceive that they receive what they thought they would and should.

        Customer satisfaction is well depended on how successfully the companies can reduce or close the gap, as shown in the above figure. In broad sense, the process of closing the customer gap can be subdivided into four organization gaps’, discrepancies within the organization that inhibit delivery of quality service.

Organization gap 1: Not knowing what customers expect

Reasons:

  • Inadequate marketing research orientation.
  • Lack of upward communication.
  • Inefficient relationship focus.

Organization gap 2: Not selecting the right service designs and standards

Reasons:

  • Absence of customer-driven standards.
  • Inadequate service leadership.
  • Poor service design.

Organization gap 3: Not delivering to service standards

Reasons:

  • Deficiencies in human resource policies.
  • Failure to match supply and demand.
  • Customer not fulfilling roles.

Reasons:

  • Ineffective management of customer expectations.
  • Over promising.
  • Inadequate horizontal communication.

Coming back to my project, I tried to find out the four organization gaps of Glasstech Limited, considering the data that I have attained through survey and secondary research.

Glasstech Limited’s Organization Gap 1

Not knowing what customers expect

Glasstech Limited does extensive marketing research on a continuous basis. Moreover, there is always bottom-up communication, which enables Glasstech Limited to better understand what customers expect; because the low-end officers deal the customers and they better understand what customers expects.

So, I reach to the conclusion that Glasstech Limited has no organization gap 1′ at present.

Glasstech Limited’s organization Gap 2

Not selecting the right service designs and standards

From the survey results and my personal observation, I found few areas that I identified as gap 2.

  • Price of Glasstech Limited’s products is higher than local glass organizations’ in the context of Bangladesh. Only high level income of people can buy from them. Although their target market is high level income of people.
  • The customer who are located in outside of Dhaka or Chittagong, if they desire to purchase they have to come Dhaka or Chittagong. It is a difficult job to travel all the way for such type of customers and spend significant time sacrificing his/her personal working hours. This is a considerable problem that creates gap.

After knowing such types of problems, Glasstech Limited is trying to solve above these problems.

Glasstech Limited’s Organization Gap 3

Not delivering to service standards

        This gap is also significant at Glasstech Limited. This gap is very important, because it occurs when a organization sets a standard but not deliver as per the standard. From my observation, some areas of gap 3 are:

  • Sometimes Glasstech Limited takes more time to deliver their products to the customers.
  • Sometimes Glasstech Limited is not able to maintain customers’ standard. This can be an alarming problem for Glasstech Limited, because it is very easy to lose customers’ in competitive market.

        Though Glasstech Limited has some service related problems but they are always trying to solve it willingly. Glasstech Limited already has been successful to build a positive and friendly image in their present & potential customers’ minds. Customers think that Glasstech Limited is sincere about solving their needs.

Recommendation

       I have designed my recommendations aiming to close the gaps between customers’ expectations and perceptions regarding Glasstech Limited’s service. My recommendations are:

  • Glasstech Limited should provide economy price product with high price product to the customers that means create new market segment.
  • Glasstech Limited can follow demarketing policy in overfull demand of glass product.
  • Glasstech Limited can also follow remarketing policy when demand is low in glass industry.
  • Glasstech Limited should not price increase when demand is very high, it may decrease their positive image.
  • Glasstech Limited can establish more showrooms in many districts for improving customer service.
  • Glasstech Limited may take extensive program for improving more positive image among their customers.
  • If the some quality products has economy price than the new customer segment will be created and sales volume will be increased. These customers can easily buy the product or service.
  • Glasstech Limited should emphasis to reduce unnecessary expenses and thus they should try to reduce the cost. When the cost will be reduced then the organization will be able to gain more profit and provide more competitive price. As a result sales volume will be increased.
  • Glasstech Limited can arrange seminar, conference to provide proper knowledge about their products.

Conclusion

From the above discussion, it is clear to us that Glasstech Limited has some limitations though they have a strong position in glass industry. It is a profitable organization. Now they are in the profit maximization level. If we look at the SWOT analysis, we can see the strengths of Glasstech Limited are fairly higher than weakness. Since it is a private organization, for this reason they get some advantages. The head office provides maximum decision quickly by using modern tools & technique. The officials of Glasstech Limited can take quick decision. They take routine decision and head office gives some power to take some non-routine decisions. So, the speed of decision making is very quick.

        In the age of globalization, the government follows liberal policy regarding entry of foreign product. So, the barriers of moving product form one country to another are less than previous. Consequently, the market is being more competitive day by day. In this situation it is very tough to survive an organization without having qualified product and strong network of marketing functions. As a result, our local glass companies must be conscious of improving and maintaining product quality as well as marketing functions. They are improving continuously and quickly like Nasir Glass and PHP Glass.

        Moreover, it will be beneficial for our total glass market as well as the glass industry.

Bibliography:

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