Table of Content: Submitted By-Team Young Managers
Table of Content: Submitted By-Team Young Managers
Section: 16
Submitted by-
TEAM YOUNG MANAGERS
NAME ID#
Submitted To-
Name: Esnania Quader
Department: Management
Email: [email protected]
TABLE OF CONTENT
1
Serial Content Page Number
1 Executive Summary 3
8 Conclusion 29
EXECUTIVE SUMMARY
Nowadays everyone seeks comfort in their daily life. As progress relentlessly towards this it has
been realized that this is the time to pay increasing attention to the subject of human comfort and
entertainment. That’s why there is a huge growing demand of technologies in this world and lots
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of companies are paying attention to it.Walton Group of Industries was founded by S.M Nurul
Alam Rezvi in 1977 as a trading company. Over the next three decades the group diversified into
steel, textiles, electronics and automobiles. Walton entered into the steel industry in late 1970s
and the electronics and automobiles in early 2000s; these areas would drive its subsequent
growth. Since the 2000s Walton has expanded towards electronics and automobiles and these
became its most important sources of income. Walton is one of the highest taxpayers in
Bangladesh and has a strong impact on the country's economy. It is the largest manufacturer of
summary of the company Walton Group of Industries, a brief but extensive report reflecting the
entire timeline; from its inauguration in 1902 to the latest innovations it is developing this year.
Starting with a brief introduction and a list of the executives comprising the managing board, we
shall be discussing the strengths and weaknesses of Walton along with the potential opportunities
in growth and the threats obstructing them. A chart displaying all the factors shall be provided as
well. External and internal factors that are influencing the company’s growth and strategies shall
be covered as well. An analysis of all the information we have procured from the reports has
enabled us to contemplate possible growth strategies. Before concluding the report, we shall
peruse on the various management issues a company, one of the largest manufacturers in
Bangladesh, may well be suffering from and possible solutions to mitigating these problems.
Lastly, a list of books and websites we have taken support from, shall be provided and referred
to.
MISSION STATEMENT
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Walton emerged as one of the leading pioneers in the electronics and automobile industry in
Bangladesh. Walton claims that it serves their customers through efficient management,
excellent workmanship, and after-sales services and continuously strive for innovation and
enhanced efficiency. Walton’s mission statement has always been to attain its position in
themarket by being the leader in the field of electronics, automobiles and various types of home
appliances in Bangladesh by providing the highest quality and recognized safety performance
waste management system and takes pride in their slogan ‘Amader Ponnyo’ by manufacturing
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Walton is the latest multinational electrical, electronics, automobiles and other appliances brand
with one of the largest well-equipped R & D facilities in the world and it carries out its
production through different subsidiaries under the banner of Walton group headquarters in
Bangladesh. Walton Group of Industries was founded by S.M Nurul Alam Rezvi in 1977 as a
trading company. Over the next three decades, the group diversified into steel, textiles,
electronics, and automobiles. Walton entered the steel industry in the late 1970s and the
electronics and automobiles in early 2000s; these areas would drive its subsequent growth. Since
the 2000s, Walton has expanded towards electronics and automobiles and these became its most
important sources of income. Walton has set up its own factory in a large area of land in
Chandra, Gazipur which is around 2 million square feet. Production in this factory started in
2008, now there are more than 7000 employees, technicians, officials, and workers working in
this factory. It is the only factory in Bangladesh manufacturing and assembling motorcycles, air
conditioners, refrigerators, and lifts. It is also one of the biggest and fully operational factories in
Over the decades, Walton has earned the belief and respect of people all over Bangladesh.
Walton is also known for exporting the highest number of electronic products from Bangladesh
to over 20 countries and planning to establish their presence in almost every country in the world
by 2020. Among other conglomerates, Walton is one of the top taxpayers in Bangladesh for at
least 7 times and believes in greater welfare of the home country. Along with paying high taxes,
Walton also earned highest vat payer awards multiple times, global brand excellence awards,
highest export order awards, best local brand award, national environmental award, best
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However, as people are seeking to find comfort in their lives, there is a growing demand for
electronic products and such, overlooking the manufacturing and usage of these products putting
environmental pressure is not something Walton is affiliated with. Walton gives the highest
priority to the environment while producing its goods. Walton’s factory is equipped with
contains at least 40% of ‘green zone’ which is basically 40% of lakes and playgrounds. Walton’s
provides a clean and healthy workplace for employees to work with. According to various
Key Executives-
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S.M. Nurul Alam
Rezvi
S.M. Nazrul
Islam
S.M. S.M.
Ilias
Shamsul Mahbubul
Kanchan
Alam Alam
Group
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Ilias Kanchan Executive Director of Walton 1,00,000
Group
SITUATION ANALYSIS
Internal Factors
Situation Analysis
External Factors
company. This tool is a compilation of tools like SWOT, PEST/PESTEL, Porter’s Five Forces,
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5C Analysis and many more. Walton’s situation analysis includes its internal and external factors
Internal Factors:
2. Research and Developments: Walton is seen to introduce new range of electronic product as
per the technological changes in the environment. For this, they put much effort in the
researchand development sector. The R & D team constantly keep the authority up to date on
new technologies and how Walton can incorporate them for overall betterment.
3. Operations: Walton’s operations are well organized and dealt with dexterous
professionals.The retail organs of Walton run through more than 4000 plazas, exclusive
distributors and dealers.The company has numerous stores in Bangladesh which cater to the need
of Bangladeshi people. The inventory system operates through direct and indirect channels to
provide highest level of customer satisfaction. Walton has also established itself in over 20
countries including the markets of India, Nepal, Bhutan, Myanmar, Maldives, United Arab
They focus on brand equity and thus, the authoritative body tries to provide its employees with
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comfortable environment. Walton’s primary objective is to provide products within low cost and
that is how they attract customers with good culture in their stores.
5. Human resources:Walton has an employee base of around 21000 direct and indirect
employees.At Walton, the employees as well as administrative body are socially responsible and
their corporate social responsibility efforts are aligned to its key businesses. The employees are
fully committed to being responsible corporate citizenship through their products and practices.
6. Stakeholders: Walton is committed to its stakeholders both internally and externally and the
stakeholders also put forth their belief in Walton. The stakeholders look up to Walton for
7. Finance: It has over 40 years of sales and profit experience and it has an increasing sales
record. The financial report of Walton states that it’s still in its growth stage as the company
emerges to acquire customers through new inventions. The company follows market penetration
External Factors:
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Political
Legal Environmental
PESTEL
Economic Social
Technological
1. Political Factors:
Walton has got a stable governmental support. But it has to pay high import duty to import some
2. Environmental Factors:
Walton focuses to be socially responsible. That is, they focus on the overall well-being of the
environment and adjust their production as per the environmental needs. They try to manufacture
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3. Social Factors:
Walton caters to the need of Income group-A and Income Group-B by following market
penetration pricing strategy. They offer products with least cost so that the lower- and middle-
class target groups can buy their products and offer themselves with technological advancement.
They are adapting to the increases in spending power of their target groups.
4. Technological Factors:
Walton is actively catering to the technological changes. In this rapidly changing technological
environment, Walton tries to incorporate latest offerings within low-cost. The manufacturing
process of Walton’s electronic items focus on fast processing and extensive research on
technological changes. They also focus on developing their database, communication channels,
distribution channel as per the technological changes. Walton caters to the needs of customers by
communicating with them and knowing their problems and demands. For this purpose, they have
5. Economic Factors:
As the real GDP of Bangladesh is at its growth stage, the per capita spending is also increasing in
adjustment to that. Thus, Walton’s production is also changing as the per capita income and
6. Legal Factors:
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The vision 2021 of becoming ‘Digital Bangladesh’ encourages Walton to innovate more and
offer more to the society. The Bangladeshi government encourages local companies to increase
Organizational structure
Walton has over 7000 employees who are divided into several departments ranging from
technical, sales and market, human resources, finances, IT, customer relations and
administration. Recent changes in the management structure have brought changes in Walton. At
Walton, employees are selected on the basis of their duties and good skills (Khurshid, 2013).
General
Manager 13
Financial Factory Design
Planning
Department director center
Production HR Admin
center Technical department department
SWOT ANALYSIS
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Strengths Weakness
1. Wider product range 1. Lack of skill men power
2. Strong local presence 2. Low profit
3. Quality Product at a low price 3. Some products are highly priced
4. Strong market position 4. Customer service
SWOT Threats
1. Entry of new competitors in the market
2. Political Unrest
Opportunities 3. Change of customer's demand
1. Introduction of new products 4. Foreign product domination
2. Increase sales ini major cities 5. Future possibilities
3. New strategy to reduce the amount of cost
Strengths:
Wider product range: Walton distributes 4,500 types and models of electric, electronic,
and automotive goods that it imports, assembles, or manufactures. The demand of Walton
because of the good quality and durability. The products of Walton are much flexible to
Quality Product at a low price: Walton is providing quality product at a low price. And
this attracts the people of any level to buy their products because the consumer is getting
Strong market position: Walton has a good market position in Bangladesh. They have
plazas in every district of the country. Walton has 4,986 outlets, sales centers and dealers
Weaknesses:
Lack of skill men power: Walton is a big and repeated company in the country. But the
stuffs that work here are not that skilled and that’s why Walton might lose customers.
Low profit: Walton is providing good quality product at a cheaper price but they are not
gaining that much profit. They are spending more but gaining less.
Some products are highly priced: Some of their product are highly priced and for this
reason they are not getting that much of a customer attention for that specific product. For
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Customer service: Customer service is very important for a company. Walton may have
their plazas in every district of the country but they do not have their customer service in
every district and because of bad customer service they are losing their customers.
Opportunities:
Introduction of new products: Walton can raise their sales growth by introducing new
Increase sales in major cities: Bangladesh has a huge number of populations, most of
them live in major cities in the country and Walton is targeting those cities to increase
New strategy to reduce the amount of cost: As Walton is not getting that much of
profit out of their products, they should find a new strategy to reduce the amount of cost
Threats:
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Entry of new competitors in the market: The companies like Walton is growing in the
market day by day. They are producing the same products like Walton does and this is a
smartphone but the government, unfortunately do not support the related companies to
broad the business area. The government also do not help the company to import the
Change of customer's demand: The technology is upgrading day by day in the world.
It’s nothing same like before and with that the customer’s demand is also changing.
Foreign product domination: Foreign products are entering the market with same
specification like Walton and this is reducing the sales growth of Walton.
Future Possibilities:As the public demand is changing day by day, if they do not respect
the public demand’s they must fail to maintain the public satisfaction if future. Public
satisfaction is the most valuable thing to run a profitable and organized business.
External Analysis
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Porter’s Five Forces Model
The Five Force analysis of any organization helps to determine and analyze its competitive
environment. It is used to make decisions about the different aspects of competition the
organization is facing and how effectively it could try to cope up with the competition. These
five forces impact Walton’s success rate and this analysis will help us to examine its
attractiveness.
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Local Entrants: As the GDP is rising and the spending power is increasing, new companies are
emerging towards innovation. And thus, the number of local entrants is entering the electronics
Foreign Entrants: Foreign companies are emerging in the Bangladeshi market and they have
For mobile phones: The market is up to date with various similar offered mobile phones. Brands
such as Symphony, Linnex, Xiaomi, Oppo offer similar types of mobile phones categorized
For motorcycles: Due to the socio-economic factors of Bangladesh, the Bangladeshi people
mostly opt for motorcycles for transportation purpose. And thus, the market offers a huge variety
of motorcycles similar to the offerings by Walton within the competitive price range. Example:
For televisions: Local competitors such as My One and Singer offer similar type of televisions
offered by Walton.
For refrigerators: Competitors such as LG, Gree and General offer similar type of refrigerators
For home appliances: The local market is saturated with Chinese home appliances offered by
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Walton uses a mixture of suppliers. Walton has manufacturing firms in the operational countries.
Thus, it has the ability to control its supplies. Walton provides quality products as the supplies
are generated at-house. Apart from that, Walton imports few parts of its products for ensuring
Bargaining power of buyers is the degree to which buyers have the market strength to hold sway
buyers hold a high level of power to influence the market. Local businesspersons sell similar
offerings to consumers without considering tax. So, the prices become lower and customers opt
for similar Chinese electronic supplies rather than opting for Walton. Also, as the buyers have a
ton to choose from other companies’ offerings, they have the ability to manipulate Walton’s
The intensity among rivals increases when the industry growth rate is slow, the demand for the
products fall and product prices descend- none of which is the case of Bangladeshi electronics
market. It’s a very competitive market and the industry is growing faster than ever. Thus, Walton
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Walton’s mission is to capture local market and to double its overall market share in the next 5
years. To do this, Walton must provide superlative quality products and services at an affordable
price. Walton continuously works hard to increase their quality of product and services every
day. Walton’s future plan is to increase local market share for motorcycles from 5% to 25%,
television from 8% to 30%, refrigerator from 13% to 25%, air conditioner from 2% to 10%, et
cetera. Walton’s products are available in the markets of India, Nepal, Bhutan, Myanmar,
Maldives, United Arab Emirates, Qatar, Nigeria, and West Africa. Walton is in the process of
promoting and exporting their products in Australia, Europe, Singapore, Poland, Romania, Saudi
Air conditioners
Refrigerators
Televisions
Motorcycles
Walton’s products are up to international standards and are in the process of penetrating many
new foreign markets. Walton’s products are hitting Nigerian markets already and they are also
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making deals with Bhutan to export their products as there is high market potential in Bhutan for
Walton. Walton is doing well in highly competitive market in Bangladesh because they kept the
prices affordable and targeted its market towards middle income level group and is constantly
developing their marketing system to cope up with changing marketing environment. Walton
also believes it will strengthen their core operations by better management initiatives in the
future. Walton’s strategy for creating a solid place in customer’s mind is its after-sales service.
Walton does this because it believes in customer satisfaction and increasing and retaining
customers.
Walton mainly produces home appliances which are usually lower priced than most of the
competitors in the market. Walton is working to cut down their prices more so that middle
income level people can have comfort in their lives. Walton also sponsored major sports events
in our country, specially cricket and are rushing to do more. Walton is set to launch new
technology products like computers, monitors, memory cards and various high speedy Wi-Fi
routers throughout Bangladesh, which will be assembled and manufactured locally. One of
Walton’s future plan is to release two versions of desktop pcs which will cost around 20000 to
30000 takas. Many Walton gaming laptops, keyboards and mouse are already available in the
local market and many similar products are expected to hit the market soon.
Walton is making their products proudly with ‘made in Bangladesh’ label on them which are
attracting many foreign buyers and are hoping to export more products overseas. Although
Walton is not fully established and grabs the ‘market leader’ title in Bangladesh, it is providing
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the very best products at a reasonable price and is soon to dominate markets domestically and
internationally.
MANAGEMENT ISSUES
Management issue is the process of identifying and resolving the issue. Considering the
management issue there are two types defined in Walton Company. Positive aspects and negative
Positive aspects:The responsibility and maintaining quality of production. Instruct and guide
There are many types of issues which are counted as positive aspects showed in this company.
Considering positive aspect Walton Company have been taken some following method which
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Identifying and Reducing Failed Increasing
Recording mistakes projects Productivity
organization make a team and the perspective of that team is to identify the problem
which affect the company in production, manufacture or selling products. After selecting
those issue, those are handled by the upper manager and deduct from the organization.
Reducing failed project: Managers made plans for creating innovative something and
sometimes those plans faced some conflict among the managers. Taking those projects
some are not doing good in market and some other are just planned and structured but
not profitable for the company. They take step to reduce those projects.
upper level managers have taken responsibility to measure the organization’s production.
They are trying to make more profit in market and taking actions for increasing the
performance. Those action could be more worker, high technical machine, less
consuming time and more profit than previous production (Dolly, 2016.).
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Effective Communication: Walton is the largest Company in Bangladesh as we all
know. This company is organized by many types of people. Considering that, it showed
in the bottom to down, the top-level managers, middle level managers and low-level
managers and workers or employee. Those people are depended on each other to make a
product. They are trying make internal communication among them more effective. This
can be helpful for solving their own conflict. However most of the project fails due to
together to discuss about the project progress. It can also be helpful for reducing the
management. New equipment is been discovered for making more product in short time.
And also new strategy and ideas for creating more profitable relation with consumer in
less time. Implementing this method helps the company more success from previous
years. The employee and the workers in this company have been trained for maintain this
organization. Well training helps the employee and workers for developing new products
in less time.
Negative Aspects:Bad management is considered as negative aspects. Things goes worse and
decreasing the profit, wrong instruct and guide the employee and workers. Those defined as
Considering Walton Company, negative aspects of management can be harmful for this
company.
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Lack of Effective Poor Knowledge for
Poor Communication
Decision-Making the Technology
Lack of Effective Decision making: Decision making is one of the important term in
management. Improper decision making can lead a company in a failure project. It causes
to get good outcome. It stands for the company’s unexpected loss. Moreover, lack of
effective decision making is responsible for stand the company in worse situation.
Poor Knowledge for the Technology:Nowadays the technologies are being updated day
by day. The reason of discovering new technology is for making more product in less
time. If the employee and workers have less knowledge about technology, they will not
able to make more product. Not knowing about using technology can also reduce the
outcome of the company. Poor knowledge for the technology is defined as a negative
aspect of management.
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planning and improper understand of project can be harmful for this company. Workers
and employee will not be able to help each other about the progress of project. Moreover,
problem in this organization. Basically, it is responsible for low economic growth, extend
organization. It also makes the internal and external situation worse. Poor knowledge of
organization.
management is the ability to plan control and spends the hours in a day to effectively
accomplish their desired goal. It is important to establish clear goals and priorities. But
lack of time management can be responsible for not setting personal goals, not
prioritizing, falling to keep a to-do list, ineffectively scheduling the tasks etc. So, lack of
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CONCLUSION
As we can say Walton Company is the largest organization in Bangladesh. This company has
been running its business with good reputation since 1977. This leading company focusing on
the area of electronics in Bangladesh. This company came up with new market segments,
innovative ideas and latest technology to capture the market position. This is company also listed
as one of the highest taxpayer in Bangladesh. This company has also achieved lots of award
which were (The Golden Globe award, highest tax payer award, highest vat payer, Global Brand
Excellence award). Walton has become a company to proud of in this export area. This company
captured a lot of consumers in Bangladesh. They are optimistic about their perpetual growth and
success. They also provide prompt service, show room service and also home service too. This
company distribute more than 4500 types of electric goods, automotive goods and it import,
television, motorcycles etc. Walton company management and marketing executive are being
more skilled and progressive to make their economic growth higher. No doubt in Bangladesh
Walton Company is one of the top four company. And it also endeavored to strengthen its sales
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