Performance Evaluation of Evince Paper converting & Packaging Industries Ltd.
Description of Evince packaging company
They have financed to establish a company and they have selected packaging company to conduct the partnership business. Evince packaging company was incorporated on august 1, 2000 and the full operation and production will be started from January 1, 2001. Following are given the description of the company:
· Company Name:
Evince Paper Converting & Packaging Industry Limited.
- The company’s business address(both office and factory) is:
336/c Tejgaon Industrial area, Dhaka-1208, Bangladesh.
Telephone: 8824694, 8810369
Our website: www.Evincep.com
- Company product:
Our product is Packaging boxes that carry garments and pharmaceutical goods which will be exported to abroad.
- Initial Invested capital: TK. 50,00,000
- Our slogan:
Let us be your partner forever
- Our logo of the business:
- Type of Business:
The type of our business will be manufacturing business, which will consist of Director. The names of the five Dept Hard are as follows—
· Sultan Mahmud , will responsible for management department.
· A.A Faizul Ekram Khan, will responsible for finance department.
· Mr.Nurujaman, will responsible for production department.
· Mr.Kober Ahmed, will responsible for marketing department.
· Mr.Al-Haj Ali , will responsible for HR department.
Our vision is to become the market leader of the packaging industry
Within 12 years.
— To provide the customers best quality products.
—To increase the sales every year.
—To make good and friendly relationship with each and every customers, suppliers, and employees.
—To make the maximum use of the raw materials, assets, and labors.
—To bring and use updated technologies for remaining in the best
Description of the product:
Our product is packaging boxes that are used to carry garments goods and pharmaceutical goods which will be exported to foreign countries. The packaging boxes will be in different ply such as 7 ply, 5ply and 3 ply. And it can be different in sizes. The usual size which sold mostly is 60 cm length, 40 cm wide and 40 cm high. But we will also produce other sizes based on the customers’ requirement. Generally other packaging company companies sell only light brown color packaging boxes. But we will bring variation in color. We will desire to produce not only light brown color boxes but also black and white color boxes. Besides these we will make product based on customer’s color requirement.
To produce the product we will mainly use foreign raw materials, local raw materials will also be used in less amount. After passing from six steps of the production we will get our finished goods. For maintaining the strength and better quality we will use both gum and stapler to attach the product.
But if any customer will want to use any one from it (gum and stapler), we will also fulfill their need. By using better technologies and raw materials we will produce our product. So we ensure that our products will be better from others.
Our products strength, quality will be much more reliable to the customers that it will help us positively to compete with other packaging company. Our quality of the product may be a big threat for our competitor.
Finish Good of our Product
Market area & size:
The primary markets for our packaging boxes which provide the greatest sales potential in a relatively short period of time throughout Dhaka’s Garments and pharmaceutical companies who export their product to abroad. The primary customer in the garments sectors will be those who produce human ware and accessories. The target markets are easily accessible and identifiable. Considerable in the product has already been expressed by the following:
1. Primary market:
2. Tamasina Fashion Ltd.
3. Beximco pharmaceutical company.
4. Square pharmaceutical company.
5. M.S.T garments.
6. Nepunika garments.
7. Incepta pharmaceutical company.
9. Solo Fashion.
10. Secondary market:
11. A B C garments.
12. Artic Blue garments.
13. Altaf garments Company Ltd.
14. Annesha style Ltd.
15. Evince Apparels.
16. K A C garments company.
17. Leal Apparels.
All of the above feel that there will be a demand for our boxes because of the practical value of the product and because there is not many enough quality full product currently available which provides the features and low price. Letters of intent have been received from 6 large garments and 3 pharmaceutical companies to purchase our product. The purchases are subject to the product meeting all specifications.
The main parts or element for products manufacturing business is customers. For the customers everyone produces goods. We will always maintain the quality of the products and customers need. Only customer satisfaction can be helping a company to reach in a higher stage of the industry. By analyzing the customer survey we are decide ourselves to introduce as better quality reasonable price and in future we are try to meet their demand. We will attract the customers by providing them different types facilities Customers are the key for us to create growth so in our business we emphasize them very attentively. Once the customers will be satisfied then no other competitors can make harm to us. So we have to give more concentrate to customers’ needs, wants, demand. Among the following industry those are involved to export their products are our customers—
· Garments industry
· Pharmaceutical industry
· Other Industry
Questioners for customer has given in appendix-1
To reach in a good position in the market competing with other companies, we must have to understand the strengths and weaknesses of our competitors, identifying them within area we want to serve and the services they are offering. To know about all these things we have prepared a competitors questionnaire and surveyed among them. The questionnaire is given in the appendix section.
· Capcep packaging Ltd
· Orisit packaging industry Ltd
· Somahar packaging industry Ltd
· Pettier packaging Ltd
· Magana packaging Ltd
· Century packaging industry Ltd
· P4S Ltd.
· Torit Plastic & packaging Ltd
· Oster packaging Ltd
· Rajouawn packaging industry Ltd
· Bako packaging Ltd
· Osanial packaging & accessorier Ltd
· Nipte packaging Ltd
Among the above competitors, Capcep packaging Ltd, Orisit packaging industry Ltd, Somaher packaging industry Ltd, Patier packaging Ltd.
Ä Capcep packaging ltd. Is located in – 330/c, Tejgaon industrial area, Dhaka. They keep 60% margin and hold 14% market share.
Ä Orisit packaging industry ltd. Is located in – 125/e, Tejgaon industrial area, Dhaka. They keep 58% margin and 13% market share.
Ä Somaher packaging industry ltd. Is located – Block-E, House no.93, Rupnogor Mirpur, Dhaka. They keep 56% and 11% market share.
Ä Patier packaging ltd. Is located in – 107/A, Mohakhale Oearless, Dhaka.
They keep 53% margin and 9% market share.
Questioners for competitors has given in appendix-2
Part 2 – strategic formulation and marketing plan
Overall marketing strategy:
AS we are new company in packaging industry, we will have to make some effective marketing strategy. If our marketing strategy will be appropriate and efficient then we will get benefit in the competition. We are analyzing Strength, Weakness, Opportunities, Threat of our Evince packaging company limited.
9.1 SWOT Analysis of Evince packaging company limited. We are analyzing Strength, Weakness, Opportunities, Threat of our Evince packaging company limited.
· We will give high quality product at a reasonable price to the customer.
· Customers can get boxes of any size based on their requirement.
· We are using advanced technology for producing our product.
· Tejgaon is an industrial area & near to the garments and pharmaceutical factories. As a result we can transport our products to our customers very easily.
· Our business partners are very skilled and efficient, so that they can maintain everything in a good manner.
· We deliver the ordered products at the scheduled time and use our own transportation system.
· Our factory workers are not enough educated, so they cannot communicate properly with the foreign customers.
· Our business is spread at only garments and pharmaceutical industry, so it will be tough for us to catch the market share.
· We produce boxes for only those who export their product, but we do not sell our boxes at local market.
· We do not provide our employees any housing or transportation facility.
· More advanced technologies will be available in future.
· Competition is not very high in this sector, so it will be easy for us to get a good market share.
· We will be able to spread our business and increase our product line in near future.
· The political condition in Bangladesh is very instable.
· Increased rate of load-shedding.
· Garment workers are going on strikes very frequently.
· Price inflation.
· Increase of strong competitors.
9.2 General exposure of overall marketing strategy
Following are given a general exposure of overall marketing strategy:
- We will create a suitable image of our company.
- Our pricing will attract and retain customer.
- We will give adequate advertisement in different news paper, billboard, and an annual dinner party for some particular customer.
- We will select and industrial area for our venture.
- Give free samples to try for the first time.
- We will recruit some handsome beautiful person.
- We will give shaking hand gift for our new customer.
· We will provide credit facilities.
· Our raw materials and machineries will be imported from different countries such as India, china, Korea, Taiwan. So we can use it as our strength.
- For some specific customers we will give a minimum price discount.
In the following we have given the other detail marketing plan and strategies.
Image of the company
When considering the packaging industry it is most important to understand the nature of the market. Packaging is a major point of differentiation in most consumable goods, where competition is intense, prices are already low, and packaging can provide a tremendous marketing advantage at the point of sale. An image of a company that we project will be key factor to attract and retain customer. We will develop an image for our company which will be the mixture of-
To promote our product we will use several tools such as in the initial step we will give customers price discount free product in some particular size of order. To promote it to the customer we will give notebook, calendar, and diary having the name of our company. In future step we will give an annual dinner party for our regular customer. Promotion will be done mostly through personal selling by our executive team. We have developed a detailed sales presentation and have clearly selected companies we will target for personal presentations. We will reinforce the brand name and the main points of product usefulness. Our promotional features are:
The objective is to create a strong awareness about the product and also the brand. We want people to mug our product usefulness and taglines. The “Evince packaging company limited” will create a strong position in the minds of the target customers.
The promotional outputs will convey the clear message that “Evince packaging company limited” is better than others in the case of quality. The slogan of our company will be “Let us be your partner for ever”. We want use the sentiments of the consumer to deliver our message.
Advertising will be done mostly through personal selling. We will also give ad to the different types of newspaper s, billboard. In the business fair we will give our stall to advertise our product. Basically our strong sales force will be personally involved in the advertising activates for our product to the actual and potential customers. We will maintain a website for collect the orders from the garments and buyers and giving information to the customer about the firm.
Our website address:
Our e-mail address : firstname.lastname@example.org
10.3 Customer service–
For some particular customer who will order a reasonable quantity for our product, we will give them minimum price discount. And we will maintain appropriate delivery schedule for our customer. To satisfy customer Pricing is an important component of any marketing strategy, and always more difficult in the case of a new-to-the-world technology. With nothing on the market to benchmark against, pricing tolerance at various price points was analyzed.
The investigation began with high pricing and tearing down to low pricing. To do this, it was assumed that a particular product (7 ply-60 L/ 40H/ 40W) was offered at $2.85 and that this same product size was offered in the Evince packaging at $2.499. By keeping the ingredient the same, we are able to examine the premium that can be charged based on the new technology. This analysis shows that the consumer is prepared to pay a premium, although pricing structures will have to be developed for each category individually.
10.4 The actual quality of the service performed—
Our product will be better than others in the case of quality, because our product’s raw material will be fully exported from abroad. And by using high quality machineries which also will be export from inroad, we will produce our goods. We will recruit skilled employees; they will carefully produce the product and maintain the required quality of the customers.
We will local our company at Tejgaon industrial area. We select this location for our business because this place’s cost effective rules are suitable for us. By considering the following major cost effective rules we have selected this place—
· Raw materials: we will import our raw material at Chittagong and Beanpole port and through truck we will brought it at Tejgaon.
· Transportation of raw materials: The main depot, of Trucks is in Tejgaon .So the transportation facility is in Tejgaon is available.
· Availability of work force with required skill: As it is an industrial area so there will be available of people. So for our company work force will also be available.
· Utility: the utilities facilities such as electricity, sewerage etc is also available here.
· Transportation of finished goods: In the Tejgaon area there are many garments companies and Pharmaceuticals companies, they are our customer, so transportation of finished goods can be easily made.
· Scope for expansion: If we want to expose our business in further there are many scope to do this in this location.
By considering the above factors we have selected our location at Tejgaon industrial area.
Advertising and promotion
Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. The aims Informative advertising is to create awareness and knowledge of new products or new features of existing products.
We are decided to the Informative advertising in the initial step we because we are going because establish a new business.
The medias of advertising which will be use to advertise our ‘’Evince packaging company’s products has given below—
Newspaper will be the first media for advertise our product. Because our consumers must be read newspaper to know different types of news related to business and other matters. So newspaper map be the best media for us. We will use different types of newspapers such as are Daily Prothom Alo, Daily Independent, Daily Janakantho , The Daily Evince, the Daily Jugantor, Daily Independent ,Daily Ajker Kagoj, , Daily Inqilab, Daily Ittefaq, Daily Janakantho , Daily Inqilab, and Bangladesh Observer.
Billboard will also be used to advertise our product. We will place our billboard in front of the garments and pharmaceutical companies to inform that a packaging company name ‘’Evince packaging company limited has established in Tejgaon.
By using Internet we will advertise our products because it is one of the most important advertising media. We have already bought an Internet Domain. Our Internet address is www.Evincepc.com. People can easily access to this site & get detail in formations about our product, product quality, price, and other facilities. Consumers can also order through internet.
- Stall in business fair
In the business fair we will give our stall to advertise our product because in the business fair different types of customers will come to know about the price, quality of the product.
- Annual dinner party
We will arrange an annual dinner party for some customers those who are involve in the ordering of huge quantities. It may help them to give more orders in future.
Policy of pricing
When setting prices, every company must consider other factors in its external environment. Economic conditions can have a strong impact on the firm’s pricing strategies. In addition, the company’s pricing strategy may affect the nature of the competition it faces. We are always aware of competitors’ prices and offers. We can use them as starting point for our own pricing. Also we have to keep in mind that our price is closer to the competitors’ pricing. Basically, we use price to position its offer relative to the competition. Economic factors such as boom or recession, inflation, and interest rates affect pricing decisions because they affect both the costs of producing a product and consumer perceptions of the product’s price and value. We have also considered what impact its prices will have on other parties in its environment. The government is another important external influence on pricing decisions. Finally, social concerns may have to be taken into account. In setting prices, Evince packaging’s short-term sales, market share, and profit goals may have to be tempered by broader societal considerations. Factors that affect pricing decisions include the nature of the market demand, competition, and other environmental elements. External factor affecting the company’s pricing decisions is competitors’ costs and prices and possible competitor reactions to the company’s own pricing moves.
Whereas costs set the lower limit of prices, the market and demand set the upper limit. Both consumer and industrial buyers balance the price of a product or service against the benefits of owning it. Thus, before setting prices, the marketer must understand the relationship between price and demand for its product. By using a method we will calculate our price. The formulas of calculating price have given in the following:
· By using a formula we calculate how much square meter sheets will be needed for a particular order the formula is:
(Length + wide + 6 all in centimeter) X (wide+ height + 4 all in centimeter) × 2
For example an order of 60 × 40 × 40 cm-7ply, 5 ply, 3 ply.
L W H
(60+40+6) × (40+40+4) × 2
106 × 84 × 2
= 1.7808 /sq.mt.
Cost, margin for per square meter of different plyes are:
7 ply $1.4
5 ply $ 0.95
3 ply $ 0.54
Selling price of 7, 5, 3, ply for an order of 60 × 40 × 40 cm. are
L W H
7 ply = 1.7808 × $ 1.4 = $ 2.499
5 ply = 1.7808 × $ 0.95 = $ 1.70
3 ply = 1.7808 × $ 0.54 = $ 0.96
Method of selling and Distribution
There are several types of distribution system. One distribution system direct related with producer to final consumer. And the following selling and distribution system will be followed by our ‘’Evince packaging company limited’’
1. Garments .companies
2. Buying house.
3. Pharmaceutical Companies.
By following the above system we distribute our products through our own transportation system or consumers own transportation system.
Moreover we consider the following things:
· We show the interest of customer needs.
· We try knowing why they are inclined to buy.
· We will identify how our product & services give benefit.
· We must emphasize the points (Product Criteria) customer likes best.
· Try to understand whether they are price sensitive or quality orientated.
Servicing and warranties
We provide all types of servicing the customer may require. We provide customers products of which color, size or ply they want. Based on the size and ply the price differs. That is why we give them all the options and among them they choose their best option. Someone may want gum and pin together or separately; and we deliver just like they want. We deliver the products on a specific scheduled time promised by us and using our own transportation system. If they found any tearing or defect in the box, we replace them. And we are promised to give the customers any additional services they may need while using our product.
We ensure our customers that if they found the product quality low than our promised quality we will replace them with new one. If customers want to claim it to us they will have to show specific problems and then take the replacement.
Sales and credit term
Sales and sales in credit are the key terms for any business decision making. For this reason we have some sales and credit terms:
· All the sales are preferred to be in cash. But there are many big dealers who don’t want to do business with cash terms. We also don’t want to lose these customers. That’s why we sale to them as a credit sale.
· These credit sales have to be cleared within 90 days.
· The creditors have to show some bank warranties for operating the credit sale.
· After 90 days the person or the bank responsible for the person will have to pay the money.
· If they do not do so, the company can charge a police complain against that person or bank.
· The customers can use credit card or visa card.
· Long range credit will be provided for well known and regular customers, distributors or sellers.
· We give the credit sale option to the whole sale buyers.
· In the whole sale business we follow n/90s and no discount.
· If they return the credit within 15 days, we will list them as our loyal customer.
Other marketing strategy elements
Besides the above marketing strategies further we will use other marketing strategies to compete with other companies those are holding a good position in the industry. Other marketing strategy elements can be the following—
- Social activities
· We will do some social activities by the different types of ad such as we will give ad in small boards which remain in the middle of road. The ad may contain “Keep clean your city every time”, “Plant trees more and more”, “Follow traffic rules and reduces accidents”, “stop child labor” etc. below these ad we will give the name of our company.
· Further we will arrange cultural program, seminars for social purpose.
- Change in advertising system
· When our company names will reach to the customers and our sales will also started then we will give persuasive advertising which’s aim is to create liking, preference conviction and purchase of the products. Here we have to spend more in the advertising. So we have to keep capital to spend in the advertising.
- Give ad on the television
In future when we will get a position by increasing sales, then we will use television media for giving more ad for our product.
Description of Premises & Facilities
Our packaging company has located in Tejgaon industrial area, Dhaka.
· We are renting 20000 sq ft areas for our Evince packaging ltd. Ground floor is for using storage. 1st floor and 2nd floor is use for office room. From total space 4000 sqft will be used for office. Another 16,000 sqft of the building side is use for production. Production side is consisting one floor
· Ground floor This floor will provide for storage. Our raw materials will be stored here. There is also a place for storekeeper and finish goods.
· 1st floor This floor will be highly decorated for official use. There are 5 rooms for Director. And 1 room for conference. There will be also some rooms for employs. Fresh room is also available in there.
· 2nd floor This floor provides a large space which is specially use for storage our important file. There are place for board of director.
Raw Materials & Sources of supply:
Raw materials are main component for any production. The quality of the product depends on the raw materials. If the raw material will be high quality then the product quality will also be good. But if the raw material would be defective then product quality will be low and will not be accepted by the customer, which will affect our growth, performance, profit and reputation negatively. So we have to choose best raw material. Our company’s raw materials are given below:
· Paper , which can be different in colors
· Stitching wire
- Sources of raw materials—
We will collect our raw materials from different sources (both foreign and local market).From local, foreign raw materials quality is much better. Such as from:
· Bangladesh, which is our local source.
20.0 production method and equipment
The production method of “Evince Packaging Company Limited” includes six steps. The steps are being described below—
Raw materials (paper sheets) are imported from abroad. Plain sheet is doing corrugated with the corrugation machine. For 3 ply size sheet they need three papers, one up and one down and in middle they give a corrugated paper. In this way they can make 5 ply and 7 ply sheets.
Following has given a corrugated machine—
To make the corrugated paper more finished and beautiful we attach two more papers from both sides. And for doing this we add gum to the corrugated papers through gum pasting machine and then just attach the additional papers. This is the best quality gum imported from Taiwan and Korea.
After attaching the sheets are given to the pressure machine. They are pressured by both sides so that the gum keeps the sheets attaching with each other very well.
After pasting, all the sheets are given to the creasing machine to determine the size of the box based on the customer requirement. The size of the box is given to the machine and the machine cuts the paper according to the given size. Such as 60 × 40 × 40 cm — 7 ply.
L W H
If this command is given at the machine, it will cut the papers of this size for 7 ply sheets.
In this step the sheets are given to the slotting machine. The slotting machine cuts the box perfectly to the required size.
In this step the boxes are gone to the stitching machine. In this machine the boxes are attached with stapler or gum or both based on the customer needs.
This is the final step of manufacturing process. In this step if there is something needed to be written or printed on the box. And in this step the printing requirements are printed on the box. Such as- the company name, the product that would be carried on it etc.
So the above 7 steps are our production method steps. After producing the boxes they are been tied up in lots before delivering to the customers. There are 50 boxes in a lot. After being tied up in lots boxes are supplied to the desired customers.
In case of power fail, stand by Generator for emergency power supply.
Board of Director’s Name
There are also five boards of directors ofdirectors in “Evince Packaging Company Limited”. They are—
- Anwer Alom Chowdhury
- Gulzer Alom Chowdhury
- Rafez Alom Chowdhury
- Rezaul Islam Khan
- Aysha Banu
They take all responsibilities and decisions for conducting the business effectively and efficiently that will help the company to make profit and reach the highest point of the packaging industry.
For staffing we have to make some pre determine staffing plan. Based on this plan we will recruit employees, give salaries, and other benefits. In the staffing plan we are showing some work policies for the employees of our Evince packaging company limited.
First an application form prepared by our company has to fill up by the people who want to do the job. With the application form they have to give necessary documents of their qualification. (The application form of our company has given in the appendix 3).
We have estimated the above required no of employees, salaries based on our initial need. In future no of employees, their salaries may be changed.
23.1 Work Policies for employees
Before hiring employees there should be some work policies. These policies should be a written form so that in occurrence of any sort of accident or incident some steps can be taken immediately. The policies are:
· For lower level workers (production workers, supervisor) the working hour is 8:00 a.m.-5:00 p.m. and for higher level employees it is 9:00 a.m. to 5:00 p.m. They will get a half an hour lunch break and 15 minutes breakfast interval.
· For safety of the employees and to prevent accidents there are some special technicians who will check the machineries regularly and before joining workers will be given training on how to operate the machineries, which reduces the risk of accident.
· In case of any accident, employees will be given full help from the company, like monetary help and medical facilities.
· Salary will be given at monthly basis and at the 10th of the next month.
· For overtime working period employees will be paid with 40% incremental amount added with salary.
· Workers can do overtime only when the company gets a big order and have to produce more in a very short time.
· All the employees must come at the office at the scheduled time.
· Cleanliness at everyone’s working area should be maintained.
· Employees will be given promotion or increment in salary based on their performance, increased productivity/efficiency, maintaining rules and regulations and they can get up to 15% increment in their salary per year.
· After joining also employees will be provided training so that they increase their efficiency.
· In the company every employee can have a provident fund, so that they can get some money after their retirement.
· In case of any objection, problem or complain, there will be an supervisor who will handle all these.
· If anyone does not maintain the discipline, disciplinary actions will be taken against them or they will get some penalties, such as have a cut from salary or termination.
· Bonus will be given at two times a year, at the time of Eid-ul-Fitr and Eid-ul-Azha.
· If anyone wants to leave the job he will have to report at the office before one month.
· Employees will be given 6 days (3+3) vacations at the time of two festivals and they will be paid on that time.
· Employees can take 10 days leave in a year (except weekly vacation). But they will not be paid on that time.
· In case of personal needs or family emergency workers will have to inform their supervisor.
· If anyone does not meet the terms ad conditions of the company they will be terminated.
24.0 supporting professional services
Supporting professional servicer is essential for every business. They help us to conduct business properly. Supporting professional can be charter accountant, business lawyer, consultancy firm. For our company we will take the help of some professionals. Such as—
- Chartered Accountant
Kazi Zahir and CO.
Add: 67/4, Kakrail (Ground Floor). Dhaka-1000
- Income Tax Lower
Mr. Shamim Reza
37, new Circular Road, Moghbazar-1217
- Company Lower
Anik Mahmud khan
House 25/6, road- 27 (old), Dhanmondi, Dhaka- 1209
How Organization will be managed, what will be its chart of employee, what we expect from employees, what is Employee’s expectation from employer’s, these has been discussed in this elements—
25.1 Organizational Structure
25.2 Employer’s expectation from employees:
There are some terms that employer’s require from employees. These requirements are —
· Employees should be disciplined
· They should maintain the schedule time.
· In case of any need they should co-operate by doing overtime.
· They should maintain the office environment.
· They should try to increase the productivity and efficiency so that the company growth increases.
· Employees will behave in a good manner and make a good relationship with the customers.
25.3 Employee’s expectation from employer’s:
When coming in a new organization employees also expect something from their employers. The expectations are—
All the terms and conditions that are in the work policy should be fairly maintained by the employers.
The salary given in the work policy should be maintained.
The training facilities employers have promised should be provided.
The roles and responsibilities of employees should be clearly identified.
The working environment they have promised should be given.
Employees should be given to express their opinion, so that they will feel like they are a part of the company.
Employers should make the employees understand about how the company will grow and reach at a better position, so that they would be able to help the company to reach at that position.
If there is any kind of problem among the employees, employers should handle them in a fair way.
Employers should not discriminate in evaluating employee’s performance.
When giving promotion, the efficient employee who actually deserves that opportunity, it should be given.
25.4 Management assistance and Staff Training:
For the assistance of management we have one management directors and one managing director. They will do all activities related to management of the company.
To increase productivity and efficiency of the company staff training is very important. After hiring labor and before starting production work a highly qualified and well experienced Production Manager will conduct crash training and orientation program for-skilled and un-skilled labor. Technical persons will be provided training for better operation and to increase efficiency. We will train them so that the risk of accident can be avoided.
Government rules and regulations
There are some government rules and regulations for every business and everyone have to obey this rules and regulations. When starting a business these rules and regulations have to be considered. Government rules and regulations may affect positively or negatively to the business. These Government regulations have been established for the protection of:
· Competition, &
· The environment.
For protecting employees, a major concern is the health and safety of employees while in the job. Another major concern is the economic protection of the employees. It involves wage, working hours, overtime pay, equal pay, control of children employment, inability to wok, retirement etc. The protection of consumers is ensured by legislation from the Central and State Ministries of Consumer and Commerce Affairs. It includes health and security of consumers, the handling of credit and the labeling and packaging of products. To maintain the conditions necessary for fair competition many laws have been introduced. It concerns deceptive advertising and promotion methods. To protect the environment, anti-pollution laws has been constituted and it mainly affect the operation of the industries.
They have established “Evince Packaging Company Limited” and some government rules and regulations have affected our business. They are given below—
1) Business Registration:
The name of the firm has been selected as the “Evince Paper converting & Packaging Industries Ltd” and decided to Evincet a partnership business along with five partners. Then we have registered it by the authorized register.
2) Licensing Requirements:
According to Industrial policy 1991, licensing is not required except some business. They have started a packaging company and they may have to deal with foreigners or foreign companies, as now-a-days most of garments are being sold to foreign companies. For this reason we may have to take loan from bank or take L/C or have to gain the trust of foreigners, and for all these we have licensed our company under the appropriate authority.
3) Sales Tax:
They have made a list of goods on which the sales tax should be paid. Our sales tax rate is 25%. But it will change if the government tax rate on sales will change.
4) Income Tax:
All the directors of “Evince Packaging Company Limited” are liable for the payment of income tax. All the partners, board of directors and employees who are in the taxable income range. For our company income tax rate is 13.5%.
5) Labour Legislation:
Labour legislation protect the rights of the empoyees and thus affects the cost of our business. We have included wages, annual and statutory holidays, hours of work and overtime- when calculating our costs. We have a oss in the first year but according to the government policy we had pay al the and bonuses to the employees which is a cause of a further loss to our company.
6) Checklist of legal requirements:
Our business location is at Tejgaon,and depending on these we have prepared a checklist of legal requirements of that area and based on this list we will go for follow up actions. They are given below:
· The building and land on which we are starting up our company if it is registered or not.
· From the local Thana of Tejgaon, we will have to take the permission and clearance if anyone of our partners is related with any illegal activities or not etc. for doing business.
· Types of products and wastes from the factory should not be harmful to the environment.
· Have to take permission from DESA and WASA, because we will need huge electricity and water in the factory and for other official uses.
· We will have to check it there is any legal obligation for doing the business.
· Before hiring employees we will have to check their background f they have any criminal record.
7) Good public relation:
They follow some strategies for making public relation. We try to make a good relation with the local community, because that will help us in that time when we will be in some problem. We will also make some contact with the political elected persons. So our problem problems will be solved very quickly.
Long range plan
We have determined some long range plan for our packaging company. If we will be successful to achieve our present plan then we will try to achieve our long range plan. This plan will help us to compete strongly with other companies. Our long range plans are as follows—
Increase 5,00,00,000 capital
They will purchase our own factory and office.
They will give TV commercial ad.
They will increase our product line.
They will increase our consumer or market such as electronic companies, tea exporting companies, ceramic companies etc.
In future they will use paper and poly both to produce our boxes.
Within 12 years we will increase our sales 80% from previous years.
So we will try our heart and soul to achieve the above long range plan. For this we will do all our activities effectively and efficiently.
Critical risk assumption and solution
Every business has some risk. Without risk no business can be run. Risk is simply an uncertainty of possibility of loss. There are many types of risk. Some can be controlled, others are not. But we will have to keep one thing in mind that we should try to overcome these risks. The risk may be of any type; ultimately it affects our business, specially our money. So we should identify the possible risks and try to manage them. As we are going to Evincet a packaging company we may also face some risks. That’s why we analyzing those risks and trying to find some ways how manage or overcome these risks. The potential risks we may face and their solution has given below—
1. Unskilled labors:
Unskilled labors can be a big risk for our business. They can hamper the productivity and efficiency of our business.
· To minimize this risk we have to select our labor force carefully. We can also provide training facilities to increase their skill.
2. Lack of proper supervision:
Supervision to labor force is essential for betterment of our company. If we do not give proper supervision to our employees they will not work properly and will not concentrate on their work.
· To supervise our employees we will recruit some skilled supervisors who will all the time give their supervision to our employees whether they are working properly or not.
3. Lack of discipline among employees:
If our employees or workers will not be disciplined then it will negatively affect our company’s performance. If they are not disciplined they will not obey our orders, give respect to their seniors.
· To handle this problem by the supervision of the HR department we will establish a disciplinary committee to deal with undisciplined workers and to punish them.
4. Demand of higher wages:
Sometimes workers unnecessarily demand to increase their salary and wages which can be a threat for our “Evince Packaging Company Limited”.
· To handle this risk we will follow government salary and wages rules and regulations. Further we can do one thing we will give higher salary to employee based on their performance.
5. Low quality raw material:
If the quality of raw material will be low, the product quality will also be low. Then our customers will be dissatisfied with us, which will effect our growth. The suppliers can also give us low quality raw material without informing us. This can cause a devastating loss for our company.
· As we have promised to our customers we will use high quality raw material. We will make sure that our quality does not fall. When collecting raw materials from suppliers we will have to check the quality of them.
6. Maintenance of adequate level of inventory:
If we will not maintain proper inventory level then in case of customer order we may be fall in some potential risk to fulfill their order timely.
· To cope up with this problem all the time we have to maintain a proper level of inventory so that we can fulfill our customer requirements properly. We will appoint a supervisor who will keep checking when and how much should be kept in inventory, and if necessary he will give order and maintain the inventory according to all the requirements.
7. Place of keeping inventory:
To produce our products from raw material or inventory and maintaining the place of keeping of inventory is very important. As our raw material is paper, if it will get wet then we will be totally in loss and will be counted as waste.
· Place of keeping inventory or raw material must be dry. So we will select a place which will be suitable for keeping our raw materials or inventory.
8. Lack of knowledge to operate machine:
In our company we will use advanced technologies day by day. So the workers may not have the overall knowledge of how to operate those machineries. This can have bad effect on the total production quantity. In our country most of the machineries are human operated. So if the labor cannot operate the machineries properly the production work could be stopped.
· If the workers are not aware of the machineries from the beginning we will provide them training facilities. If we bring any advance technology, then we will bring some special technicians along with it and they will train our employees.
Now-a-days load-shedding has become a pert of daily life. But it hampers the flow of work. Interruption in manufacturing process may reduce the quality of the product.
· To overcome this problem we have planned to buy a generator which will be used during the load-shedding.
10 .Natural climate & disasters:
Natural climate and disasters may create a huge risk for our business. Such as flood, rain, earthquake etc. which can damage our property and life.
· We have no control over natural climate and disasters. But we can take some precautions so that any disaster can not do any devastation to our business. We should be up to date with the regular weather report and take precaution according to it.
11 .Political changes:
Change in political environment may be a big risk for our company, because political parties announce hartal many time and it may affect our collection of raw materials, delivery of products etc.
· Generally we do not control it. We can do one thing that is we can make good relationship with every part of our country.
12 .Rising competitors:
Number of competition increase may bring risk for us. Such as it new competition of our business decreased product price, increased quality of product by using better technologies than it can be risk for us.
· To face this risk we have to prepare all the time. For this we have to create large capital so that our increased, improve quality of our product, provide better facilities to everyone, supplies, employees, customer to compete with the competitions.
13 .Lack of proper utilization of marketing strategy:
If we don’t use proper marketing strategies then we can’t able to reach our potential customer, we’ll fail to market our product.
· Before selling our product we’ve to fix what will be our strategies to market our product. How we can analyze what there company do for their marketing strategies.
14 .Governmental regulation:
Government regulation something’s may create risk for us. Such as it government increased income tax, decreased extra fees to import raw materials or make any policies or rules which may not be suitable for our business.
· There we can be prepared previously to change or match up our business with the change of government rules and regulation.
15 .Low sales compare to sales forecasting:
If our sale will be low then we can’t withdraw our cost that is occurs to produce products because it is the main factor to collect money.
· To increase our sale we’ve to use quality raw materials, skilled labor give enough ad that will detail our product to customer. We can also give promotional tools that will help to increased sale.
Increase in price of raw materials or decrease the price of competition product may be creating a risk for us.
· To handle the price change in raw material ability strong. When competitions decrease their price. We will also decrease our price to retain customers.
17 .Lack of proper promotional effort:
Increase in sales is largely depending on the proper promotional activities. For example, hoe we will promote our products to stimulate sales. If we will not give our proper effort to promote our product then it may affect negatively our sales.
· To promote our products we will give adequate advertisement, good promotional tools such as wall watch, t-shirts, annually dinner party etc. we will also give advertisement in the newspaper, and give stall in the trade fair.
18 . Wrong information from market research:
When doing the m