Meghna Cement
Meghna Cement
Submitted to
Dr. Mohammad Solaiman
Associate Professor
Department of Marketing
Comilla University
Submitted by
Golam Mohiuddin
ID-19010712
Session- Spring 2019
MBA (Weak End)
28 February 2021
Department of Marketing
COMILLA UNIVERSITY
Letter of Transmittal
Sincerely Yours,
…………………………………….
Golam Mohiuddin
ID-19010712
Session- Spring 2019
MBA (Weak End)
Department of Marketing
Comilla University
i
Declaration of Supervisor
This is to certify that the internship report on “Industry Analysis and Supply Chain
Management of Meghna Group of Industries”. has been prepared by Golam Mohiuddin,
ID-19010712, under my supervision.
The internship report is an integral part of the requirement of MBA (Weak end)) degree from
the Department of Marketing at Comilla university. He has communicated with in regular
basis and the report has been prepared under my guideline and is suitable for submission.
…………………………
Dr. Mohammad Solaiman
Associate Professor
Department of Marketing
Comilla University
ii
Student Declaration
I hereby declare that this intern report titled “Industry Analysis and Supply Chain
Management of Meghna Group of Industries”. is executed as per course requirement for
the post graduate program in marketing. It has yet never been submitted by me or any other
person to any other university or institution for degree or diploma until now. It’s my own
work, and confront to be subjected to any queries or liable for any miss interpretation of the
data presented. Most of the information and data presented has been collected from primary
sources as the market as well as related personnel and the rest was partially collected through
net browsing and further studies of texts, articles and journals. I will not take any
responsibilities for the errors attained for various sources. It will be my humble request to see
them as statistical errors.
………………………..
Golam Mohiuddin
ID-19010712
Session- Spring 2019
MBA (Weak End)
Department of Marketing
Comilla University
iii
Acknowledgement
The theoretical knowledge that is gathered from the Educational institution is not
sufficient to aware the subject matter rather the practical knowledge. In order to resolve the
dichotomy between these two areas, I was assigned to prepare a report on " Industry Analysis
and Supply chain Management of Meghna Group of Industries."
I, Golam Mohiuddin, First of all, would like to express my gratitude to almighty Allah
for keeping me mentally and physically sound to prepare this report. Again, I would also like
to express my heartiest gratitude & thanks to those people, because without their dedication
and contribution this project would not have been possible and would not get the successful
compellation.
I would like to take the opportunity to express my gratitude to my internship advisor,
Dr. Mohammad Solaiman, Associate Professor, Department of Marketing, Comilla
University for his valuable suggestion, without his supervision that would have been
extremely difficult to accomplish.
In the office of Meghna Group of Industries some people continuously assisted to
learn numerous aspects of Supply Chain. Among those people, I want to thank to Md.
Zobayer Hossain, Area Seles, Comilla; who was my organization supervisor. During last
three months, he taught me every logistics work to the point and assigned me in different
activities.
Finally, I humbly appreciate the endurance & assistance of the entire individuals at
Meghna Group of Industries who spent their time in making me able to complete my
Internship Report.
iv
Abbreviations
MGI- Meghna Group of Industries.
HR- Human Recourse
JDE- Specialized Software uses to automated business
SCM- Supply Chain management
TFM- transportation and Freight management
TMS- Transportation and Management System
TM- Transport Module
EDI- Electronic Data Interchange
KPI- Key Performance Indicator
BIWTA- Bangladesh Inland Water Transport Authority
DN- Delivery Note
DOA- Diligence of Authority
GRN- Goods Received Note
S&OP- Sales and Operational Planning
OP- Order Process
v
Table of Contents
No Contents Page
Letter of Transmittal i
Declaration of Supervisor ii
Student Declaration iii
Acknowledgement iv
Abbreviations v
Executive Summary vii
Chapter 1 Introduction
1.1 Background
1.2 Origin of the Report
1.3 Objectives
Chapter 2 Overview of Industry
2.1 History of Industry
2.2 Factors that influence the cement industry
2.3 Overview of the Company
Chapter 3 Supply Chain Management
3.1 MGI Plant
3.2 Production Process
3.3 Supply Chain Management
3.4 Supply Chain and Logistics
Chapter 4 Analysis & Findings
4.1 Factor analysis of the Conceptual Model
4.2 Respondents and their demographic characteristics
4.3 On way ANOVA Test
4.4 Fresh Cement’s conformance quality
4.5 Fresh Cement distribution process is effective
4.6 Fresh Cement provide quality product with low cost
4.7 Advertising helps to know and buy Fresh Cement
4.8 Findings of the Study
Chapter 5 Performance Analysis
5.1 SWOT Analysis
5.2 Porter’s five forces
5.3 Departments of MGI
5.4 Pricing of Meghna Group of Industries
Chapter 6 Job Responsibilities
6.1 Job responsibilities
6.2 Project Work
6.3 Competitors Analysis
Chapter 7 Recommendations and Learning
7.1 Observation
7.2 Recommendation
7.3 Learning
Appendix
Questionnaire
vi
Executive Summary
vii
Chapter 1
Introduction
1
1.1 Background
Bangladesh cement industry is the 40th largest market in the world. Currently capacity of the
industry is about 20 million ton (MT). Top 13 players are alone controlling over 78% of the
total industry capacity. However, the balance capacity still remains quite fragmented. (Zebun
Nahar, 2011)
Development of cement industry in Bangladesh dates back to the early-fifties but its growth
in real sense started only about a decade. The country has been experiencing an upsurge in
cement consumption for the last five years.
Government gave permission for establishing cement industries in Bangladesh in FY1995.
Initially the cement industry took place without the proper analysis of the demand and supply
of cement in the country. Within the span of the two to three years, industry attained
expanded capacity of the product with stable growth rate of consumption.
There were mainly four dominant players in the cement industry in the year 1998 that
produced their own cement to meet the demand of their customers. These companies were:
Meghna Cement (owned by Bashundhara group)
Eastern Cement (currently known as Seven Horse)
Chatok Cement
Chittagong Cement (taken over by Heidelberg)
After a decade, currently 123 companies are listed as cement manufacturers in the country.
Among them 63 have actual production capacity while 32 are in operation. The current
installed capacity of the industry is 20.0 mn MT.
Meghna Cement Mills Ltd is the first manufacturing unit of Bashundhara Group and it is one
of the largest cement industries in the country producing nearly 1 million metric tons a year.
The Meghna Cement Mills Ltd is an International Standard Organization (ISO 9001: 2008)
certified company having accreditation of manufacturing products for both domestic and
international markets. The company is listed with both Dhaka and Chittagong Stock
Exchanges, the two bourses of the country since 1995 and 1996 respectively. The company
markets its product under the registered trade mark "King Brand Cement".
2
1.3 Objectives
Broad Objective
To analyze the existing cement industry in terms of Supply Chain Management System at
Logistics unit of Meghna Cement Mills Ltd.
Specific Objectives
The specific objectives of this report are:
Scope
This report is intended to be a detailed examination of the activities that take place in logistics
department of MGI and will analyze the details of bills and procurement system of the
company as well as the overall operational efficiency. The analysis is based on information
till August 16, 2015. Any other development of logistics thereafter is thus out of the scope of
this report.
Rationale
The Internship report has been prepared as a part of fulfillment of BBA. This report “Industry
Analysis and Supply Chain Management of Meghna Cement Mills Ltd” was prepared to
analyze the existing industry and the supply chain management system of Fresh Cement.
This report can be useful to the employees of logistics team and other teams dependent on
logistics administration and the management committee and help them make informed
decisions. Moreover, other players of this industry can compare their operations as well and
strategize accordingly.
Limitation
3
I have been an intern at Meghna Cement for around 11 weeks and gathering all the necessary
information within those eleven weeks was quite difficult on both my part and my
supervisor’s part. Moreover, in order to abide by the policy of Data Security of Meghna
Cement Mills Ltd, certain information could not be reproduced in preparing this report, also
accessing information relevant to my report was not encouraged either.
Methodology
To have the initial objectives accomplished, both primary and secondary data was used.
The organizational overview information was derived from various sources including the
annual reports of meghna group, MGI website, the Financial Statements of MGI.
For the procedural and analysis section information was gathered through interview of the
employees working in the Logistics Unit, extraction of relevant data from original sources
and from policy guidelines.
In case of making a comparison with competitors, the websites of such competitors, publicly
available annual reports and interviews have been taken as the major sources of information.
The methodology includes the methods procedures & techniques used to collect and
analyze information. For conducting the study, I have used both primary sources and
secondary sources. The sources are given below-
Many of the data and information were collected from my practical experience and
queries from the executives while doing my internship at Meghna Group. Besides, most of
the necessary data has been gathered by up close and personal meeting with the significant
4
customers of the bank and individuals working in various office, individual examination with
brokers, roundabout sent by Head office and keeping up every day journal which contains
every one of the exercises that has been watch and done in the bank. Some sources are-
i. Face to face conversation with existing & new clients of MGI.
ii. Practical desk work.
iii.Relevant document’s studies as provided by the officers concerned.
Many of the information in this report additionally has gathered from some secondary
sources some of them are-
i. Documents of MGI
ii. Annual report of MGI
iii. Audit reports
iv. Official website of MGI
v. Research journals
5
Chapter 2
Overview of Industry
6
2.1 History of Industry
Cement has been in use by humans throughout history; variations of the material were
used by the ancient Greeks, Romans and Egyptians, with the earliest archaeological discovery
dated to 12-10,000BC in modern-day Turkey. The Romans used a mixture of lime (calcium
oxide) and pozzolan – crushed volcanic ash – to create hydraulic cements, which could set
under water. Other cements used crushed brick, tiles and ceramic pottery as aggregates.
Famous historical buildings made from concrete, still standing today, are the Colosseum and
Pantheon in Rome, and the Hagia Sophia in Istanbul.
The Middle Ages were a quiet time in the history of cement; any discoveries made during this
era remain unknown, although masons are known to have used hydraulic cements to build
structures such as fortresses and canals.
The Industrial Revolution in Europe in the late 18th century saw a flurry of new
developments in cement and concrete, with important contributions made by John Smeaton,
who discovered that the hydraulicity of lime was directly related to the limestone’s clay
content, James Parker, Louis Vicat and Egor Cheliev.
The precursor to modern-day cement was created in 1824 by Joseph Aspdin, a British
bricklayer and builder, who experimented with heating limestone and clay until the mixture
calcined, grinding it and then mixing it with water. Aspdin named this Portland Cement, after
the famously strong building stone from the Isle of Portland in Dorset, UK. His son, William
Aspdin, made the first cement containing alite (an impure form of tricalcium silicate).
In 1845, Isaac Johnson fired chalk and clay at much higher temperatures than the Aspdins, at
around 1400-1500oC, which led to the mixture clinkering, and produced what is essentially
modern-day cement.
Since the 1900s, rotary kilns have replaced the original vertical shaft kilns, as they use
radiative heat transfer, more efficient at higher temperatures. achieving a uniform clinkering
temperature and produces stronger cement. Gypsum is now also added to the resulting
mixture to control setting and ball mills are used to grind clinker.
Other developments in the last century include calcium aluminate cements for better sulphate
resistance, the blending of Rosendale (a natural hydraulic cement produced in New York) and
Portland cements to make a durable and fast-setting cement in the USA, and the increased
usage of cementitious materials to store nuclear waste.
New technologies and innovations are constantly emerging to improve the sustainability,
strength and applications of cement and concrete. Some advanced products incorporate fibres
and special aggregates to create roof tiles and countertops, for example, whilst offsite
manufacture is also gaining prominence with the rise of digitalisation and AI, which could
reduce waste and improve efficiency and on-site working conditions. Cements are also being
developed which can absorb CO2 over their lifetimes, reducing the carbon footprint of the
building material.
7
2.2 Factors that influence the cement industry
There are certain factors that influence the cement industry. The factors include:
Economic scenario – Phases of growth in the economy are positively linked to cement
company growth.
Cost structure and competitiveness – There isn’t much that cement companies can do
regarding cost structure because the margins are less to begin with. Cost advantages
are usually due to companies having access to a cheaper power source, a quality
limestone reserve, or being close to bigger markets.
Legal, regulatory, and environmental scenario – The cement industry is affected by
regulatory norms. This is prominent in developed countries where environmental
issues are more stringent. This adds to the companies’ costs.
Technological advancement – A disruptive innovation can give the innovating
company an advantage. For example, when companies moved from the wet
manufacturing process to the dry manufacturing process, there was a cost savings of
5%–10% of the overall cost structure.
Geographic advantages – It’s an advantage for companies to be near limestone mines
or waterways. Ease of transportation is an advantage.
8
Export Market : India, Bhutan, Nepal, UAE, Kuwait, Singapore, Malaysia, UK, Hong
Kong, Vietnam
Logistics & Services :Oceangoing Vessel-02, Oil Tanker-15, Lighter-31, Covered
Van/Bus/Truck/Pickup-550, Air Craft-02.
2.3.2 History
The history of one of Bangladesh’s largest leading conglomerates, Meghna Group of
Industries (MGI) can be traced all the way back to 1976 when its predecessor operated under
the name of Kamal Trading Company. The conglomerate itself has humble origins and began
its life as Meghna Vegetable Oil Industries Ltd. in 1989 on a small patch of land in
Meghnaghat, Narayanganj.
The secret to the success and vast expansion of MGI has been diversification and the group
has entered a broad array of different markets and industries including Fast Moving
Consumer Goods (FMCG), building materials, pulp and paper, LPG, feeds, fiber, power
plants, shipping, seeds crushing, chemicals, ship building, dockyard, securities, insurance,
media and aviation. The product range of MGI today is truly impressive and the
conglomerate markets most of its products under the recognisable brand names of "Fresh",
"No.1", "Actifit", "Pure" and "Meghnacem Deluxe". The result of this level of reach and
diversification has been that within Bangladesh one in every two households uses MGI
products and internationally MGI has a substantial presence in the Middle East, Southeast
Asia, Europe, South Africa, North and South America.
As a result of this relentless process of expansion MGI has become a powerful player within
Bangladesh and has become the largest investor in relation to industrial development in
Bangladesh over the last few years. MGI became the first company in Bangladesh to
establish a private economic zone known as the "Meghna Economic Zone", which has since
been followed by the creation of two further economic zones, which are named “Meghna
Industrial Economic Zone” and “Cumilla Economic Zone” respectively. The conglomerate
has expanded even further since this point, with an unprecedented investment of $451 million
in 2020 that has erected nine new industrial units within its multiple economic zones.
Throughout this process, and the history of the conglomerate, in general, the unwavering
commitment of its visionary leader, Mostafa Kamal, Chairman and Managing Director of
MGI, has been pivotal. Renowned for his entrepreneurial expertise and patriotism, Mostafa
Kamal has played a key role in the development of industry, healthcare, education, sports and
social welfare in Bangladesh. The integrity and dedication towards the group that he has
displayed during his tenure, in addition to his philanthropic work, have played a vital part in
the overall success of MGI.
Meghna Group has contributed almost 75 million US Dollars as Tax to the state exchequers
in Fiscal year 2012-2013.
9
This is undoubtedly a glaring example of passionate initiative and a pioneering leadership
role by a private sector investor in country's economic and industrial development.
2.3.5 Vision
To be Bangladesh’s most admired & progressive global conglomerate.
2.3.6 Mission
Delighting our customers and maximizing value through innovative solutions,
inspired employees, adaptation of technological advancements and living in harmony with
environment.
2.3.7 Values
Integrity Customer Focus
Keeping Promises
Respect Team Work
10
2.3.8 Customers or Buyers of the Company
MGI ltd. is fast moving consumer goods in short FMCG manufacturing company.
Customer groups from every sphere of the society use to buy its products. This company also
has cement production unit. Renowned housing companies as well as individual builders also
prefer to buy Fresh cement. In addition, a good number of café, restaurant & dining hotels
use its FMCG products in their everyday life. Beside, this company has aviation business;
normally rich people use this service for their personal use.
11
2.3.10 Subsidiaries
Meghna Group of Industries has the following subsidiaries:
United Sugar Mills Ltd.
Meghna Seeds Crushing Mills Ltd.
United Edible Oil Mills Ltd.
TanveerOil Mills Ltd.
Surma Mustard Oil Mills Ltd.
Unique Cement Industries Ltd.
Fresh Cement Industries Ltd.
Janota Flour and Daal Mills Ltd.
Tasnim Chemical Complex Ltd.
United Fiber Industries Ltd.
Tanveer Polymer Industries Ltd.
Global Ad Star Bag Industries Ltd.
Unique Power Plant Ltd.
Everest Power Generation Company
Tasnim Condensed Milk Ltd.
Tanveer Food Ltd.
Sonargaon Salt Industries Ltd.
United Mineral Water & PET Industries Ltd.
Dhaka Plastic Bottle Industries Ltd.
Meghna Tea Company Ltd.
TanveerPriting& Packaging Industries Ltd.
Tanveer Paper Mills Ltd.
Meghna Pulp & Paper Mills Ltd.
Meghna Shipbuilders & Dockyard Ltd.
Mercantile Shipping Lines Ltd.
United Shipping Lines Ltd.
Meghna Aviation Ltd.
United Feeds Ltd.
Unique Hatchery & Feeds Ltd.
Tanveer Steel Mills Ltd.
Meghna Properties Ltd.
Bangladesh National Insurance Company Ltd.
Dhaka Securities Ltd.
Everest CNG Refueling Conversion Ltd.
12
Chapter 3
Supply Chain Management
13
Logistics and Supply Chain Management
Head of
Logistics
and Assistant
Planning Manager
Head of Industrial
Purchasing Ecology
Supply
Chain
Director
14
3.2 Production Process
The different stages of Cement production is described here:
3.2.2 Packaging
The packaging of MGI is likewise done in a computerized way. MGI hosts contract
with third gatherings that produce cement sacks as indicated by prerequisites. Every pack
weights 50 kg and concrete is filled naturally more than 50kg, so that after spillage the
amount does not diminish less than 50kg. Bundled and fixed concrete packs are sent through
carpet lift to the canal boat and truck loader. There are 2 flatboat loaders and 1 truck loaders
in the plant.
15
3.3 Supply Chain Management
In definition, Supply Chain management defines the flow of goods, movement and
storage of raw materials, placing finished goods from production place to customers through
interconnected and interlinked networks of channels and businesses. “Keith Oliver”, a
consultant at Booz Allen Hamilton (Booz and Company) brought the word “Supply Chain
Management” in business world through his interview for Financial Times in 1982.
Gradually, the word spreads to different organizations and became popular in mid 1990s.
Major areas of SCM are operation management, logistics, procurement, information
technologies, product development, sourcing and production. According to Robert Handfield,
Ph.D. (2011), “Supply chain activities cover everything from product development, sourcing,
production, and logistics, as well as the information systems needed to coordinate these
activities.
The general process of SCM follows, design planning, execution, control and monitoring to
maximize customer value and achieve a sustainable competitive advantage. Through SCM
organizations gain various objectives, like creating net value, building a competitive
infrastructure, leveraging worldwide logistics synchronizing supply with demand, measuring
performance globally, calculating supply chain transactions, managing supplier relationships,
and controlling associated business processes.
A definition is given by Hines (2004:p76): "Supply chain strategies require a total systems
view of the links in the chain that work together efficiently to create customer satisfaction at
the end point of delivery to the consumer. As a consequence, costs must be lowered
throughout the chain by driving out unnecessary expenses, movements, and handling. The
main focus is turned to efficiency and added value, or the end-user's perception of value.
Efficiency must be increased, and bottlenecks removed. The measurement of performance
focuses on total system efficiency and the equitable monetary reward distribution to those
Page 33 of 61 within the supply chain. The supply chain system must be responsive to
customer requirements."
16
Barges are likewise stacked in a programmed path for cement and clinker.
17
MGI, Supply Chain has three divisions and Logistics team has two subdivisions
18
outbound (delivery) orders. Transportation and Freight Management for the most part
manages stream of products and data.
With the assistance of TFM individuals can figure out the expense of transportation of
products, it keeps up the nature of merchandise amid transportation, can discover the best
course and mode for the most straightforward transportation.
Transportation administration frameworks deal with four key procedures of transportation
administration:
1. Planning and decision making – TMS will define the most efficient transport
schemes according to given parameters, which have a lower or higher importance
according to the user policy: transport cost, shorter lead-time, fewer stops possible to
ensure quality, flows regrouping coefficient, etc
2. Transportation Execution – TMS will allow for the execution of the transportation
plan such as carrier rate acceptance, carrier dispatching, EDI etc.
3. Transport follow-up – TMS will allow following any physical or administrative
operation regarding transportation: traceability of transport event by event (shipping
from A, arrival at B, customs clearance, etc.), editing of reception, custom clearance,
invoicing and booking documents, sending of transport alerts (delay, accident,
nonforecast stops…)
4. Measurement – TMS have or need to have a logistics key performance indicator
(KPI) reporting function for transport.
Transport and freight management helps organizations to improve the economic well-being,
social interaction, quality of physical environment and quality of daily life. It remains the
bridge between demand and supply by fulfilling the demand of people in new location where
no local supplies are available. Some components of TFM are: transit time, reliability,
accessibility, capability, Security (Coyle, 2011)
19
are kept up and worked in ways that diminish outer expenses (blockage,
contamination, accident hazard, and so on.).
Change cargo conveyance times to lessen blockage
Land use availability ought to increment by bunching regular destinations
together, which decreases the measure of travel needed for merchandise
dispersion.
Vehicle energizes need to keep up effectively and decrease outflows through
outline upgrades and new advances. These incorporate expanded optimal
design, weight Page 36 of 61 diminishments, decreased motor grinding,
enhanced motor and transmission plans, more effective tires, and more
productive embellishments.
Training ought to ad lib for vehicle administrators to energize more pro
Improve passengers’ ability to carry luggage and other baggage on public
transit (Goldman and Murray 2011).
Now a day’s organizations use ERP system for smoothen TFM. Some software providers are
either acquired or merged with supply chain management consultancies and started offering
shippers "blended"; managed and software services as an outsourced process. With new
innovations and technologies the efficiency of freight and commercial transport is getting
improved.
20
Customer Pick-up Carrying:
There is another kind of transportation which is called "Client Pick-up Carrying". In
this connection client will organize transports (trucks/canal boats/trawler) at his own
particular obligation and send the same with legitimate documentation (DN, approval Paper).
The vehicles/transports will likewise take after line frameworks (serial) for stacking at
individual area.
21
owned by MGI; others are handled by third party but monitored and controlled by MGI. At
every point MGI has handling contractor to load and unload goods swiftly.
22
is done in a deliberate manner with the goal that cement sacks can undoubtedly take out when
fundamental. From the distribution center, old concrete packs are dispatched first and
afterward new sacks. Other than distribution centers, there are dump regions where stocks are
kept also.
23
So MGI diminish cost by selecting shorter course for organization exchange and maintain a
strategic distance from longer course.
Another approach to lessen logistics expense is arrangement with the transporters and
handlers which for the most part relies on upon sum and improving limit use.
For stock the expense once in a while varies. MGI consistently screen how cost can be
decreased without diminishing quality and administration.
24
Easy bill checking and smooth installment process.
Route shrewd expense examination and recognize chance of addition.
Transporter fulfillment for on time installment.
Solid establishment for a cargo database.
Target accomplishment and overcome gathering review perception
Activates in JDE
Safety
Warehouse administration
Stock administration
Customer criticism
25
Response time
Labor accessibility (for Handling Contractors)
26
3.4.20 Payment Management
For Logistics operational purpose, MGI has contracts with different transporters and
handling contractors as well as with some service providers. They submit their bills to the
Head Office after service received from users with authentication. To provide their payments
MGI need to process that bill for proper checking and documentation after compliance.
27
Monetary Analysis
Programming administration Training
Authority Training
I. Administration and Leadership Skill: How great the representative is dealing with the
workplace, how the worker is performing wellbeing measures and how well in driving
colleagues.
II. Useful Skill: How productively the representative is performing own employment
obligations
In light of these two abilities last assessment is finished. In the event that any
representative has lacking on any range, unique preparing is arranged.
28
3.4.26 Client protestation & come back merchandise oversaw economy.
Client Complaints: In there will be At whatever protestation viewing item quality, afterward
client informs those deals group. Offers fewer groups authoritatively send mail on client
forethought less group to examination. Then afterward investigation, client mind
manager/executive informs logistics less group for substitution cost for merchandise
following endorsement from concerned power.
Come back goods: Assuming that any protestation emerging starting with the client will be
advocated and endorsed Furthermore approved by worried cooperation At that point vital
activity will be taken Toward particular logistics less group to came back merchandise from
client webpage upon Regard laid down to client objections taking care of strategy.
Came back products adjustment: following settlement from claiming client objections
Furthermore bringing physical give back of products starting with customer, webpage station
in-charge/terminal administration faculty speak for ho offers admin cooperation for change
over framework & production about new “SO”. Then afterward accessibility for “SO” in
systems, station / terminal logistics group organize reinstatement for merchandise.
29
Chapter 4
Analysis & Findings
30
4.1 Factor analysis of the Conceptual Model
Factor analysis is a statistical approach that can be used to analyze interrelationships among a
large number of variables. The main purposes of factor analysis are to reduce data to a
smaller set of summary variables and to explore theoretical structure (Malhotra, 2009). Factor
analysis was used in the current research to assess the discriminate validity of the
questionnaire. In this research. Factor analysis were conducted for the items related product,
price, place, promotion and customer Buying Behavior.
Factor analysis of customer satisfaction about marketing mix elements resulted in 5 factors
accounting 67.544% variance. The factor underlying customer satisfaction at different level
of customer perception towards product was as follow:
Product (Factors 1) contained five statements and explained 43.917% of the variance in the
data with an Eigen value of 16.689.The attributes associated with ‘wide range of product
assortments’ ‘Brand image’ ‘Quality’ ‘Durability’ .
Price (Factors 2) contained five statements and explained 17.351% of the variance in the data
with an Eigen value of 6.593. The attributes associated with ‘fare price’ ‘satisfactory
discounts offer’ ‘low priced products’ ‘lucrative price bundling’ ‘fare price ’.
Place (Factor3) contained three statements and explained 4.517% of the variance in the data
with an Eigen value of 1.735. The attributes associated with ‘Distribution process’ ‘constant
supply’ ‘distribution center’
Promotion (factor4) contained five statements and explained 1.696% of the variance in the
data with an Eigen value of .645. The attributes associated with ‘online shopping services’
‘advertising media choice’ ‘direct media ads would have a direct effect on purchase’.
Customer Buying Behavior (factor5) contained four statements and explained .063 % of the
variance in the data with an Eigen value of .053. The attributes associated ‘recommend my
product to my friend family member considering the recent purchase’ ‘recommend to others
considering the overall experience’ ‘satisfied with my decision to use the brand’.
31
Fresh Cement has the biggest brand image .594 3.680 43.917 43.917
in Bangladesh .525 2.974
Fresh Cement’s conformance quality is high.
Fresh Cement is more durable than other brands
Out of 100 questionnaires, all were usable. The demographic characteristics of the respondents are
shown in table 4.1. The major occupation group of the respondents was student 25%; 25%
respondents was service holder, 25% respondents were businessman and 25% respondent was
32
housewife. In terms of level of education, 10% of the respondents had an Up to college level, 30% of
the respondents had a Graduate level, 40 % of the respondents were Post Graduate level and others
are 20%. In the issue of gender distribution of the respondents, most of the respondents were male
80%; the female respondents were 20%. The case of age group the foremost of the respondents was
15 or below years10%,16-30 years 10%,31-45 years 20%,46-60 years 20% and 61 or above years
30%. The income group included those with an annual household income of Below 20000 tk 10%,
20001-35000 tk 20%, 35001-50000 tk 30% and Above 50000 tk 40%.
Respondent(N=100)
Frequency Percent%
Age
15 or below 10 10%
16-30 10 10%
31-45 20 20%
46-60 30 20%
61 or above 30 30%
Gender
Male 80 80%
Female 20 20%
Occupation
Student 25 25%
Service Holder 25 25%
Businessman 25 25%
Housewife 25 25%
Education
Up to college 10 10%
Graduate 30 30%
Post Graduate 40 40%
Others 20 20%
Monthly Income
Below 20000 10 10%
20001-35000 20 20%
35001-50000 30 30%
Above 50000 40 40%
33
4.3 On way ANOVA Test
ANOVA
Interpretation of data: Significance Level of Gender .149 means that this factor cannot
vary on customer buying behavior. Significance Level of Age .148 means that this factor
cannot vary on customer buying behavior. Significance Level of Occupation .000 means that
this factor can vary on customer buying behavior. Significance Level of Education .186
means that this factor cannot vary on customer buying behavior. Significance Level of
Income .001 means that this factor can vary on customer buying behavior.
34
4.4 Fresh Cement’s conformance quality
35
4.5 Fresh Cement distribution process is effective
From the above table it can be seen that 16% of customers are agree that Fresh Cement
distribution process is effective, 34% customers are Moderately agree, 39% customers are
neutral, 5% customers are disagree about this statement. Here, the minimum customers
support the statement.
36
4.6 Fresh Cement provide quality product with low cost
Fresh Cement provide quality product with low cost
Value Frequency Percent Valid Percent Cumulative Percent
From the above table it can be seen that 22% of customers are agree that Fresh Cement
provide quality product with low cost 34% customers are Moderately agree, 37% customers
are neutral, 6% customers are disagree about this statement. Here, the minimum customers
support the statement.
37
Advertising helps to know and buy Fresh Cement.
From the above table it can be seen that 68% of customers are agree that Advertising helps to
know and buy Fresh Cement,11% customers are Moderately agree,18% customer are
strongly agree, 2% customers are neutral, 1% Moderately customers are disagree about this
statement. Here, the maximum customers support the statement.
38
4.8 Findings of the Study
After completing a comprehensive survey I am able to understand the Marketing Mix and
Consumer Buying Behavior of Fresh Cement. I have attained both positive and negative
Image of Fresh Cement. The survey’s major findings are given below:
In overall, Fresh Cement has strong Brand image all over the country (Based on
sample data). In today’s market place, consumers not only buy the actual product or
service, but the status, perceived benefits associated with the organization that is
doing the selling– intangible qualities that differentiate the item of choice from all
other similar offerings in the marketplace.
It is very important to charging the correct price for a product. If the price is too high
consumers will avoid the product as they will believe it to be too expensive yet if the
product is priced too low they may believe that there is something wrong with the
product for it to be so cheap. A good portion of consumer thinks that increase of price
will hinder them to purchase.
From the data we can say that Fresh Cement brand has undoubtedly the best quality in
the market place.
Consumer always seeks value from desirable product for money. A good portion of
consumer thinks that Fresh Cement provides good value for money.
People are being satisfied by using Fresh Cement than other Brands. Because of
strongly influential factor, Fresh Cement is able to satisfy a large portion of consumer.
The intention of consumer to buy Fresh Cement in near future is positive. Since, Fresh
Cement is meeting consumer’s expectation, so consumers think they buy in near
future.
39
Chapter 5
Performance Analysis
40
5.1 SWOT Analysis
Strength Opportunity
Threats Weakness
5.1.1 Strength :
Fully Intregreted cement Company in Bangladesh
One of the best limestone Miles in Bangladesh
Fully Automated 24 hours automated quality control cement plant
Best Quality Cement
5.1.2 Weakness
It has no owned trans port vehicle
High Price
5.1.3 Opportunity
Going to be merged that will increase its growth.
Opportunity to occupy clinker market in Bangladesh
5.1.4 Threat
Inreasing of fuel and gas price
Legal restrictions
41
42
5.2 Porter’s five forces
The Five Forces That Shape Industry Competition
Threat of New
Entrants
Rivalry
BargainingnPower Among Bargaining Power
of Suppliers Existing of Buyers
Competitors
Threat of Substitite
Products or
Services
43
5.2.2 Bargaining power of buyers ---------------- High
Large number of segmented buyers
Government, more than 20 percent consumer of cements; enjoy monopoly power to
select the cement companies.
Buyers are price sensitive as cement accounts for large portion of infrastructure cost.
As cement industry is likely to be co concentrated in the future, oligopoly structure
would curtail the buyers’ power.
44
5.3.2 Finance and Accounts Departments
The Finance and the Accounts Department of MGI is interlinked. This office is
primarily in charge of keeping and checking on the financial records and to transform the
reports which include the monetary exchanges of the organization. All the monetary reports
and budgetary Board of Directors CEO Finance Director Supply Chain Director Marketing
Director Sales Director Operations Director Director, FMD Strategy Director Legal Director
Page 20 of 61 diary sections of MGI are readied by the Finance and Accounts office. These
offices additionally guarantee the upkeep of the records for the organization. The yearly
spending plan distributed to different branch workplaces are checked by the Finance and
Accounts group. If there should arise an occurrence of any budgetary intricacies to be
determined sheet or yearly reviewing, the office assumes the key part in fulfilling that.
Checking bills, doing installments and repayments are their key assignments
5.3.3 HR Departments
This department is responsible for recruiting potential candidates, training them, making a
succession planning and developing their talent.
Recruitment process
To select a worker, the organization first gives the promotion of the empty position
inside. Intrigued hopefuls from the association are permitted to apply for these positions. The
representative would then need to confront a meeting. On the off, chance that he passes the
meeting then the hopeful would need to take consent from his area of expertise head so as to
switch his specialty or to move to another position. The second alternative is that the interior
referrals are utilized where the representatives of MGI alludes to an applicant who may be
qualified for the empty position of the organization. Last however not the minimum,
opportunity notices are given in both the neighborhood news papers and the online business
catalog of Bangladesh.
Training and development
The preparation and advancement is essentially upheld by the logistics and promoting
office. There are different sorts of preparing projects which are accommodated the
representatives in MGI. The representatives who are working in the Commercial building in
Dhaka are given additionally preparing which is of a more refined nature. This primarily
alludes to doing so as to prepare where the worker essentially learns and by working with
their chief. Then again, other concerned laborers of the organization, for example, the
professionals, bricklayers, engineers, assembly line laborers and the merchants are prepared
throughout the year. Different sorts of at work instructional meetings alongside gatherings
and classes are Page 21 of 61 organized them with help and backing from the promoting and
the logistics division of the organization.
45
Succession planning and talent development
The administration of the association takes a gander at the track records of the
representatives in the progression arranging project. The reputation for the most part
comprises of data identified with the execution of a worker. This reputation is likewise made
by the HR division of the organization. According to the consequences of the reputation, the
lacks of the workers are recognized and obliged steps are taken by the HR staff to help that
representative further evaluate and build up his abilities.
46
The marketing department of MGI follows each and every aspect which is mentioned to gain
the best out of the market and from the customers as well. During Ramadan month they
arranged several Iftar party to be in touch with their loyal and potential customers.
47
prices, are influenced by demand-supply dynamics. Seasonal factors like weak demand
during monsoon in most areas also put pressure on prices. As the freight cost accounts for a
substantial proportion of sales price, the ruling market price of cement becomes different in
different regions.
Factors
There are certain factors that directly have an impact on the pricing strategy at Meghna
Group of Industries. These are as follows:
Price dynamics change in the market. This can be caused by fluctuation in costs
like electricity cost, fuel cost, distribution cost elements etc. For example, if suddenly
the fuel cost goes high by a large margin then the price of the product will also move
upwards.
Seasonality impact. Seasonality means a characteristic of a time series in which the
data experiences regular and predictable changes which recur every calendar year.
Any predictable change or pattern in a time series that recurs or repeats over a
oneyear period can be said to be seasonal. These seasonality changes causes cement
price to fluctuate.
Special offer. During special offers special prices are introduced to go with the offer
Achievements for volume target. If a volume target is achieved then in some
instances reduced prices are offered for a certain time period to the achiever.
Strategic market decision. Sometimes strategic marketing decisions are taken which
Page 28 of 61 affect the price of the product.
Change of imported clinker price. Meghna imports clinkers for production. If the
clinker price moves upwards or downwards then the price of cement moves along
with it.
Non trade customer. For non trade channel customer, price may change based on
negotiation with customers, customer’s purchase order, MOU, business agreements
with the customer and special project based competitive offer etc.
Modes of transportation change/lifting location. If a customer’s mode of
transportation changes then often it causes the price of the product to change as well.
This happens because different vehicles cost different amount of money to deliver
product. Similarly if the location of lifting is changed that also affects the price of the
product.
Freight cost elements change. Another reason for price of the product to change is if
the freight cost elements change. These affect the price of the product directly.
Need to be price competitive in the market. Sometimes to price competitive in the
market the price of the product needs to be marked down. For instance if all the
competitors are selling their product at a significantly cheaper price than sales of
products from MGI will automatically go down. So to be competitive in the market
the price needs to be marked down. (Nasif Kabir Siqqique, 2014)
48
Chapter 6
Job Responsibilities
49
6.1 Job responsibilities
I used to compile monthly transfer costs (freight, handling, BIWTA charges; empty
bags consumption, demurrage) for each transporters and kept record.
my responsibility was to collect the handling bills, recheck them and after processing,
send to Accounts Payable for payment. Besides that I analyzed those bills to find out
whether we can minimize cost at any point.
I was responsible to check their bills with JDE transport module and keep
documentation. Then I took approval from Logistics manager. After processing the
bills I send them to Accounts payable department for check disbursement.
After joining in the Logistics Department, I had to go through the whole Shipment
Process to understand how logistics works are done by MGI. Following that process I
had to do all the assigned jobs. Furthermore, I had prepared two SOP (SOP for ST
Truck Unloading and SOP for Bill Processing) and coordinated in another SOP (SOP
for Depot Opening and Closing).
Participated in preparing the presentation on “Safety instructions”
Monitored the personal protective equipment and timely handover those to each
group.
To analyze the overall cement industry in terms of the current scenario of MGI
To predict the competitiveness among the key players
To have a better understanding of the cement industry of Bangladesh
50
Methodology
This project has been done by collecting information from diverse applicable sources.
A few records have been taken by watching and working with the organization itself. On the
other hand, this report additionally comprises of a lot of information got from both primary
and secondary sources.
In the year of 1995, the administration first gave authorization for building up cement
commercial enterprises in Bangladesh. Notwithstanding, this authorization was given to the
organizations with no sort of exhaustive former investigation of the business. In this way the
Page 53 of 61 beginning stage of the foundation of the concrete business occurred without the
best possible examination of the interest and supply of cement for the nation. Inside of the
51
compass of the following 2 to 3 years, the supply of cement coming into the nation
confronted an extended limit of the item.
To compare between a local and a multinational company I choose Shah Cement and
Heidelberg Cement. In terms of products offerings, production and technology, and price the
differences are analyzed as follows:
52
Products offerings: Shah Cement offers Shah Cement Special and Shah Cement Popular,
MGI offers Supercrete and Powercrete whereas Heidelberg offers only Scan Cement and
Ruby. In order to survive in the industry all top 10 companies uses almost same functional
activities. Every cement company uses unique names to offer their products.
Production and Technology: In terms of technology there is hardly any difference among
them as they are the top players of the industry. Being the market leader Shah cement has
some unique features that make the difference. It has the highest production capacity which
amounts to 2,700,000.00 in MT/year followed by Heidelberg 1,800,000.00 in MT/year and
for MGI it is around 1,600,000.00. When we come to technological aspects Shah cement has
an upper hand like its high-tech bagging plant is capable of producing 3 lac packs per day;
where packaging unit is equipped with exclusively Star linger High tech Machinery. Shah
Cement is the pioneer to use stitch free bags. Meghna has one huge advantage over these two
which is- it can produce its products with its own resources without importing anything from
outside.
Price: Price varies from area to area or locations to locations but very close to one another.
Pricing of cement bags is done by observing the price of the competitor’s products. For a
sample, the business pioneer of cement in Dhaka is Shah Cement. In this manner the cost of
the results of Heidelberg and MGI in Dhaka is altered relying upon the cost of Shah Cement
in Dhaka. Then again, right now Ruby Cement is the marker pioneer in Cox's Bazar and
Supercrete is the business pioneer in Sylhet. In this manner the cost of Heidelberg items in
Page 55 of 61 Cox's Bazar and Sylhet will be altered according to the cost of Ruby and
Supercrete. This methodology does result to a fluctuating cost of the same item starting with
one area then onto the next yet in any case; there is never a hole of more than Taka 10 inside
of the nation.
53
Chapter 7
Recommendations
And
Learning
54
7.1 Observation
From my three months experience I have watched a few issues where MGI has absence of
productivity. I am clarifying those issues here:
In the transportation framework, the transporters once in a while make delay in
conveyance of merchandise, as a result of activity, now and again they waste time in
streets and here and there they squander products quality. This issue makes some
misfortune like client disappointment, loss of merchandise and so on.
Some of the time line of requests happens in view of sudden request from the client in
an odd time. Like, if any client give request by the day's end it is not generally
conceivable to convey item the following morning.
MGI don't load or empty amid terrible climate. In this way, amid the blustery season
the stops here and there get to be out of stock and clients need to sit tight for quite a
while for the merchandise. For terrible climate MGI needs to number loss of
numerous hours.
The stockrooms are overseen in a manual manner, similar to; the amount of stock in
any distribution center is measured from the information of offers, which does not
give precise data. There is no programmed including framework the distribution
centers. For this lacking at some point the distribution centers got to be out of stock or
overload.
MGI assess suppliers by just watching their administrations, yet there is no standard
configuration to gauge the execution of suppliers.
MGI gives great support of its clients, after that it doesn't keep up any estimation level
for client administration. There is no "Service Level Agreement" with its clients.
7.2 Recommendation
MGI can execute GPS framework in the vehicle so that from the head office the
vehicles can be checked. With the assistance of GPS, it can quantify, which vehicle squander
the amount of time in movement and some other issues. It can likewise be observed whether
the transporters are included with any fuel pilferage or some other wrongdoing.
Automation can be acquainted in line administration with give the products to client on time.
During blustery season, transportation for the most part done through trucks. In this way,
long separation ought to be kept away from by truck. It will diminish the expense.
Additionally, taking into account interest anticipating the warehouses ought to be filled
before stormy season.
in every distribution center, programmed checking framework ought to be set up, so that
when the concrete sacks will stack in the stockroom framework will keep record and amid
uprooting products framework will do same. From the both data, correct free space can be
measured and in view of the precise measure of products can be sent.
55
7.3 Learning
Timing: we all know “time is money” and in Meghna I came to know how important
it is to be time specific. If any meeting is on 1p.m then by any means that meeting has
to be on time.
Team work management: every team works to carry out their members to accomplish
the given task whether it is HR, Finance, Marketing or Logistics department. Working
as a unit not as individuals is their main theme.
Corporate manners and culture: in our day-to-day life the way we intend to do things
we just do it but in an organization like MGI I came to know corporate norms,
manners and culture. It seemed to me that everything is structured and organized.
Real work life experience: in these three months I never felt like I was an intern as I
always felt that I was working as a real employee.
Business terms and conditions: my internship gave me a real chance to closely
practice the business terms and conditions.
Communicate with corporate: just doing a job by sitting on the desk and
communicating with corporate people to accomplish a task are two different things.
Fortunately, I got both the opportunity during my internship. I used to communicate
with not only the employees of head office but outside of the head office as well.
Other than that, I have learnt more features of excel, how to do scanning and
photocopy.
56
Appendix
Annual Report of MGI
Business processes, p. a. Business and Industry Portal. Retrieved from
http://www.business.qld.gov.au/business/starting/business‐planning/processes‐
procedures‐standards
Cacioppo, K. Measuring and Managing Customer Satisfaction:
http://www.qualitydigest.com/magazine/2000/sep/article/measuring‐and‐managing‐
customer‐satisfaction.html
Chopra, S. (n.d.). Designing the Distribution Network in a Supply Chain. Retrieved
from
http://www.transportation.northwestern.edu/docs/research/Chopra_DistributionSuppl
yChain.pdf
Coyle, N. G. (2011). Transportation: Critical Link in the Supply Chain. Khalid
Rababah, H. M. (April 2011). Customer Relationship Management (CRM) Processes.
Faculty of Transport and Traffic Sciences.
http://www.klevas.net/en/index.php/moduliai/transporto
https://www.mgi.org/
International Journal of e‐Education, e‐Business, e‐Management and e‐Learning, Vol.
1, No. 1.
Marinko Jurčević, D. M. (n.d.). THE ROLE OF HUMAN FACTORS IN SUPPLY
CHAINS.
Rifat, Khadija Islam. (2014). The Supply Chain Management of Lafarge Surma
Cement Ltd.
Saurine Doshi, H. K. (n.d.). Reducing total delivered costs through improved . A.T.
Kearney.
Transport Module. (n.d.). Retrieved from Klevas:
Vanek, F. (2014, April 1). Increasing Commercial Vehicle Transport Efficiency.
Retrieved from http://www.vtpi.org/tdm/tdm16.htm
57
Questionnaire
Dear Respondent
This is an academic research project entitle as “Supply Chain Management in Cement
Sector: A study on Meghna Group” There are some questions related to your personal
information. I will appreciate your valuable time and support in answering the questions. All
the information collected will keep strictly confidential and shall use for only report purpose.
The research intends to abide by all communal acknowledged ethical codes.
Please indicate at what scale you agree with each statement using the following scale. Please
give tick (✓) mark in the response Colum.
(1) Strongly disagree
(2) Disagree
(3) Moderately disagree
(4) Neutral
(5) Moderately agree
(6) Agree
(7) Strongly Agree
Customer Information:-
58
Response
No Statements
. 1 2 3 4 5 6 7
59