Kores (Bangladesh) Ltd. (ISO 9001:2000 Certified Company)
HISTORY: Kores (Bangladesh) Ltd is a manufacturer/exporters and buying agent of Garments having good linkage program with garments industries to support import program from Bangladesh. Kores (Bangladesh) Limited emerged from Magura Group of companies in the year 1998 as one of the best quality sweater manufacturers The Mascot International Limited a sister concern of Kores ( Bangladesh) Limited working as a buying house of different Garments items, mainly sweater of different styles, long pants, shorts, cargo pants on denim/twill fabrics, T-shirts etc., well equipped with skilled and professional team members with commitment to execute big volume orders of the valued buyers.. The company is in a position to open Back to Back L/C for import of yarn and raw materials within a couple of days form the date of receipt of Master L/C for execution of the Export orders. Sister Concern The Mascot International Ltd. A Sister Concern of Kores (Bangladesh) Ltd. Located House No # SW(C)14 , Road No # 7, Gulshan-1 Dhaka-1212, Bangladesh. Phone:-880-2-9883736, 603079, 8829935. Fax:-880-2-8821192, E-mail:-firstname.lastname@example.org Service & quality So far we have been working with different foreign buyers of Italy, France & Denmark to feed back our own manufacturing unit Kores (Bangladesh) Ltd and planning to split orders to our associate industries. If you have a specific query on us we can offer you our services in the following manner: 1) Providing you required customer samples & salesman samples on your specific orders Queries. 2) Offering you our best workable prices on the s/samples. 3) Execution of your export orders maintaining delivery schedule, Follow-up all the steps in the production, keeping you informed about current status of your orders, checking of measurements, weight of garments as per measurements / spec sheet ultimately issuing pre-shipment inspection certificate for & on your behalf.
2 COMPANY OF KORES & MAGURA GROUP Name of the associated companies of Magura Group is:
The Mascot International Ltd. Kores Textiles Ltd Magura Paper Mills Ltd Bangladesh Monespool Paper Mfg. Co. Ltd. Bangladesh Development Company Proposed Project:
We have taken up another sweater project of 600 knitted machines comprising of 3, 5, 7, 10 & 12 GG along with required supporting machines in the next phase, which is now under implementation. Hopefully we would be able to start serving our customers with the new sweater project from January, 2005 onward.
Kores (Bangladesh) Ltd - ISO 9001:2000 Certificate
The Value Chain Management
The Value Chain To better understand the activities through which a firm develops a competitive advantage and creates shareholder value, it is useful to separate the business system into a series of value-generating activities referred to as the value chain. In his 1985 book Competitive Advantage, Michael Porter introduced a generic value chain model that comprises a sequence of activities found to be common to a wide range of firms. Porter identified primary and support activities as shown in the following diagram: Porter's Generic Value Chain
The goal of these activities is to offer the customer a level of value that exceeds the cost of the activities, thereby resulting in a profit margin. The primary value chain activities are: Inbound Logistics: the receiving and warehousing of raw materials, and their distribution to manufacturing, as they are required. Operations: the processes of transforming inputs into finished products and services. Outbound Logistics: the warehousing and distribution of finished goods. Marketing & Sales: the identification of customer needs and the generation of sales. Service: the support of customers after the products and services are sold to them. These primary activities are supported by: The infrastructure of the firm: organizational structure, control systems, company culture, etc. Human resource management: employee recruiting, hiring, training, development, and compensation. Technology development: technologies to support value-creating activities. Procurement: purchasing inputs such as materials, supplies, and equipment. The firm's margin or profit then depends on its effectiveness in performing these activities efficiently, so that the amount that the customer is willing to pay for the products exceeds the cost of the activities in the value chain. It is in these activities that a firm has the opportunity to generate superior value. A competitive advantage may be achieved by reconfiguring the value chain to provide lower cost or better differentiation. The value chain model is a useful analysis tool for defining a firm's core competencies and the activities in which it can pursue a competitive advantage as follows: Cost advantage: by better understanding costs and squeezing them out of the valueadding activities.
6 Differentiation: by focusing on those activities associated with core competencies and capabilities in order to perform them better than do competitors. Cost Advantage and the Value Chain A firm may create a cost advantage either by reducing the cost of individual value chain activities or by reconfiguring the value chain. Once the value chain is defined, a cost analysis can be performed by assigning costs to the value chain activities. The costs obtained from the accounting report may need to be modified in order to allocate them properly to the value creating activities. Porter identified 10 cost drivers related to value chain activities: • • • • • • • • • •
Economies of scale Learning Capacity utilization Linkages among activities Interrelationships among business units Degree of vertical integration Timing of market entry Firm's policy of cost or differentiation Geographic location Institutional factors (regulation, union activity, taxes, etc.)
A firm develops a cost advantage by controlling these drivers better than do the competitors. A cost advantage also can be pursued by reconfiguring the value chain. Reconfiguration means structural changes such a new production process, new distribution channels, or a different sales approach. For example, FedEx structurally redefined express freight service by acquiring its own planes and implementing a hub and spoke system. Differentiation and the Value Chain A differentiation advantage can arise from any part of the value chain. For example, procurement of inputs that are unique and not widely available to competitors can create differentiation, as can distribution channels that offer high service levels. Differentiation stems from uniqueness. A differentiation advantage may be achieved either by changing individual value chain activities to increase uniqueness in the final product or by reconfiguring the value chain. Many of these also serve as cost drivers. Differentiation often results in greater costs, resulting in tradeoffs between cost and differentiation. There are several ways in which a firm can reconfigure its value chain in order to create uniqueness. It can forward integrate in order to perform functions that once were 6
performed by its customers. It can backward integrate in order to have more control over its inputs. It may implement new process technologies or utilize new distribution channels. Ultimately, the firm may need to be creative in order to develop a novel value chain configuration that increases product differentiation. Technology and the Value Chain Because technology is employed to some degree in every value creating activity, changes in technology can impact competitive advantage by incrementally changing the activities themselves or by making possible new configurations of the value chain. Linkages between Value Chain Activities Value chain activities are not isolated from one another. Rather, one value chain activity often affects the cost or performance of other ones. Linkages may exist between primary activities and also between primary and support activities. Consider the case in which the design of a product is changed in order to reduce manufacturing costs. Suppose that inadvertently the new product design results in increased service costs; the cost reduction could be less than anticipated and even worse, there could be a net cost increase. Sometimes however, the firm may be able to reduce cost in one activity and consequently enjoy a cost reduction in another, such as when a design change simultaneously reduces manufacturing costs and improves reliability so that the service costs also are reduced. Through such improvements the firm has the potential to develop a competitive advantage. Analyzing Business Unit Interrelationships Interrelationships among business units form the basis for a horizontal strategy. Such business unit interrelationships can be identified by a value chain analysis. Tangible interrelationships offer direct opportunities to create a synergy among business units. For example, if multiple business units require a particular raw material, the procurement of that material can be shared among the business units. This sharing of the procurement activity can result in cost reduction. Such interrelationships may exist simultaneously in multiple value chain activities. Unfortunately, attempts to achieve synergy from the interrelationships among different business units often fall short of expectations due to unanticipated drawbacks. The cost of coordination, the cost of reduced flexibility, and organizational practicalities should be analyzed when devising a strategy to reap the benefits of the synergies. Outsourcing Value Chain Activities
8 A firm may specialize in one or more value chain activities and outsource the rest. The extent to which a firm performs upstream and downstream activities is described by its degree of vertical integration. A thorough value chain analysis can illuminate the business system to facilitate outsourcing decisions. To decide which activities to outsource, managers must understand the firm's strengths and weaknesses in each activity, both in terms of cost and Ability to differentiate. Managers may consider the following when selecting activities to outsource: • • •
Whether the activity can be performed cheaper or better by suppliers. Whether the activity is one of the firm's core competencies from which stems a cost advantage or product differentiate. The risk of performing the activity in-house. If the activity relies on fast-changing technology or the product is sold in a rapidly changing market, it may be advantageous to outsource the activity in order to maintain flexibility and avoid the risk of investing in specialized assets. Whether the outsourcing of an activity can result in business process improvements such as reduced lead-time, higher flexibility, reduced inventory, etc.
The Value Chain System: A firm's value chain is part of a larger system that includes the value chains of upstream suppliers and downstream channels and customers. Porter calls this series of value chains the value system, shown conceptually below: The Value System ...
Supplier Firm Channel Buyer > > > Value Chain Value Chain Value Chain Value Chain
Linkages exist not only in a firm's value chain, but also between value chains. While a firm exhibiting a high degree of vertical integration is poised to better coordinate upstream and downstream activities, a firm having a lesser degree of vertical integration nonetheless can forge agreements with suppliers and channel partners to achieve better coordination. For example, an auto manufacturer may have its suppliers set up facilities in close proximity in order to minimize transport costs and reduce parts inventories. Clearly, a firm's success in developing and sustaining a competitive advantage depends not only on its own value chain, but also on its ability to manage the value system of which it is a part. Relevant Findings 3.1 Inbound Logistics Required raw materials or accessories are listed bellow: Sl # Item Sl # Item 1 8
Brand Hang Tag
Plastic Hang Tag
Barcode Hang Tag
Elastic String (12")
Metal Clip (200 Pcs/Box)
Process of materials collection: After get the order from buyer then Marketing & Merchandising section communicate with the Dying factory& Accessories supplier. And Marketing &Merchandising manager or Merchandiser consumption of Yarn as per buyer order. Then order to Dyeing factory for Lab-dips development. Here order to that Dying factory which provide the lower cost and better quality& due time delivery. Before Lab-dips order Merchandiser must collect original sample of Yarn / Color swatch / Panton.no from buyer. And given some original swatch is to dyeing factory for Lab-dips development as like as original swatch. After developed of Lab-dips dyeing factory submits for approval from buyer by the Marketing &Merchandiser. Here those shades get the approval from buyer. This shade goes to the bulk production. Purchase to other accessories, Marketing &Merchandising manager or Merchandiser collect the original sample of all required accessories, Such as zipper, button, main label, size label ,care label, hang tag, price tag, poly, blister& carton from buyer. Then communicate with the different supplier for sample development. Which accessories factory provide the lower cost and better quality& due time delivery. We order to those accessories factory for required accessories sample development. After developed the accessories (zipper, button, main label, size label, care label, hang tag, price tag, poly, blister& carton) accessories factory submit for approval from buyer by the
10 Marketing &Merchandiser those shade get the approval from buyer. This shade goes to the bulk production. After approval sample of yarn and accessories from buyer then Kores (Bangladesh)Ltd opened Back-to-Back L/C against master L/C for the accessories supplier. Here, Bank accept 75% Back-to-Back not more. Process of handling of raw materials: Winding dept
Washing dept 10
Whether sufficient lighting/ventilation Whether fire extinguisher provided Whether first aid box provided Whether face mask/cap provided
Yes/No Yes/No Yes/No
Yes Yes Yes
Whether sufficient lighting/ventilation Whether fire extinguisher provided Whether first aid box provided Whether ample space between machines Whether knitted panels are stored in bins Whether proper production & QC records maintained No of supervisors per machine
Whether sufficient lighting/ventilation Whether fire extinguisher provided Whether first aid box provided No of supervisors per machine
Whether sufficient lighting/ventilation Whether fire extinguisher provided
Whether wshd & pre wshd garments are kept in bins Whether proper production & QC records maintained Whether workers are provided protective gear Whether electric boards & switches protected fm water Whether sufficient washing & drying capacity available
Yes/No Yes/No Yes/No Yes/No
Yes Yes Yes Yes
Whether sufficient lighting/ventilation Whether fire extinguisher provided Whether pressed garments are kept in bins Whether proper production records maintained Whether first aid box provided Whether pressing boards are marked for style & size
Yes/No Yes/No Yes/No Yes/No Yes/No
Yes Yes Yes Yes Yes
Yes/No Yes/No Yes/No
Yes Yes Yes
Mending/Trmg Whether sufficient lighting/ventilation Whether pressed garments are kept in bins Whether proper production & QC records maintained QC dept
Whether sufficient lighting/ventilation Whether detailed QC records maintained AQL level followed by the fty for inline & final Inline inspections Final No of persons in the QC team
Yes/No Yes/No 2.5 4.0 12
Sorting & Pkg
Whether sufficient lighting/ventilation Whether garments are sorted by shade before ctn pkg Whether dept is adequately staffed Whether sufficient walking space (aisles) btwn ctns Whether ctns are stacked by style, color & size Whether high stacks are avoided to prevent crushing Whether carton are stacked away from water, oil etc.
Yes/No Yes/No Yes/No Yes/No Yes/No
Yes Yes Yes Yes Yes
Whether all depts. are properly marked
Whether fire extinguishers are highlighted Whether all exits and entrances marked Whether electric boards are marked with "CAUTION" Whether toilets are marked Whether first aid boxes are highlighted Whether generator & boiler are marked "CAUTION"
Yes/No Yes/No Yes/No
Yes Yes Yes
Yes/No Yes/No Yes/No
Yes Yes Yes
Signs & Markings
12 Price list of required raw materials or accessories in the prospect of Bangladesh : Sl #Item
2 Woven Main Label
11 Rubber Puller
$ 0.40/dzn $ 0.45/dzn
IBT Navy (KIDS)
13 GREAT STONE
TGT Red (Girls)
$1.60/dzn Vislon no-5, O/E – Full length $ 2.40/dzn
3 Woven Size Label
Vislon no-5, O/E – half length $ 1.00/dzn
4 Paper Care Label
Nylon no-3, O/E – half length $ 0.65/dzn
5 Printed Price Tag
6 Rubber Patch
Nylon no-5, O/E – Full length
15 Embroidery: ART(0002)>4.80 email@example.com $ 1.20/dzn
‘S’logo(0003)>5 firstname.lastname@example.org $ 1.20/dzn 16 Twill Fabric
7 Woven Badge(AUTHENTIC) $ 0.48/DOZ 8 Fack leather string
10 YOUNG FASHION
Price list of yarn for the running Market SL. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 12
Description 100% ACRYLIC 100% ACRYLIC 100% BRIGHT ACRYLIC 100% COTTON(CARDED) 100% COTTON (COMDED) 100% COTTON(COMDED) 100% ACY H/BULK 100% ACY MELANG 100% ACY CTNLIKE 100% ACY CTNLIKE 100% ACY-SMILING 100% ACR, CASMERE LIKE 100% ACR, CASMERE LIKE 100% ACY CHENILLE (5 GG) 100% COTTON LIKE 100% COTTON LIKE
Yarn COUNT 2/32 ”smm” 2/36 “Smm” 2/40 “NM’ 2/20 “NE” 2/20 “NE” 2/30 “NE” 2/32 “ smm” 2/32 ”smm” 2/26 “NE” 2/28 “NE” 1/9 “NM” 2/36 “smm” 2/32 “smm” 1/3.5 “NM” 2/28 “NM” 2/26 “NM”
Price 1.35/Lbs 1.40/Lbs 1.70/Lbs 2.10/Lbs 2.20/Lbs 2.50/Lbs 1.35/lBS 1.70/Lbs 1.65/Lbs 1.70/Lbs 1.80/Lbs 2.20/LBS 2.10/LBS 1.90/Lbs 1.70/Lbs 1.70/Lbs
17 18 19 20 21 22 23 24 25 26 27 28 29
100% COTTON 50%/50% ACY/CTN(Combed) 50%/50% ACY/CTN(Combed) 50%/50% ACY/WOL( S/D) 50%/50% ACY/WOL (D/D) 85% / 15% ACR /WOL S/D 85% / 15% ACR /WOL D/D 70%/30% ACY/WOL S/D 70%/30% ACY/WOL D/D 70%/30% ACY/WOL S/D 70%/30% ACY/WOL D/D TWISTING CHARGE(ACRYLIC) TWISTING CHARGE(cotton)
2/32NE 2/20 “NE” 2/30 “NE” 2/32 “smm” 2/32 “smm” 2/32 “smm” 2/32 “smm” 2/32 “smm” 2/32 “smm” 2/36”smm” 2/36”smm”
100% COTTON 2.35/Lbs 2.50/Lbs 2.50/Lbs 3.00/Lbs 2.25/Lbs 2.35/Lbs 2.30/Lbs 2.50/Lbs 2.30/Lbs 2.60/Lbs 0.30/lBS 0.25/lBS
Types of Information system use of Kores (Bangladesh) Ltd to Communication: Most of the times face-to-face meeting with supplier or communicate with them by the Telephone, FAX, e-mail as well as mobile phone. The impact of the digital revolution Kores (Bangladesh) Ltd opened their website account (www.koresbd.com ) &e-mail account email@example.com to reach their information to the potential buyer or any other else. Operation Process of production: Sample Section: Buyer given to original sample/sketch /measurement sheet for sample development. if buyer is satisfied on develop sample Then buyer give the approval & After setting the price he/she give the order. Winding section: After receiving the yarn from the dyeing factory (Before bulk production dyeing factory approved by the Lab-dips and three-set of knitting swatch from buyer through buying house or merchandiser).In the Winding section yarn is bobbin. Bobbin size depends on the knitting weight. Generally it is 2½ -3½ Lbs. but requirement of knitting section it could be ½ -4½ Lbs. After this bobbin distributed to the Knitting distributes section. Then knitting distribution section distribute of the bobbin to Knitting section for knitting the garments part by part. After completed the Knitting garments part by part its reach to knitting inspection section for inspection. Then again Knitting garments part by part go back to knitting distribution section. From here Linking distribution section collect Knitting garments part by part for linking & distributed to the linking operator. After completed the linking operator submit to the Linking inspection section. Then garments/products distribute to over lock .After over lock garments go to Trimming section including Light Cheque , here Trimming & Light Cheque both section just identity the problem for repairing in the next section its called Mending Section .After Mending garments/products go to the wash section . When wash is completed then products distribute to Iron section. From here garments distribute to sewing section for attached the main label, care label & size label. after completed sewing garments/products go to PQC .here cheque everything for ensure the perfect quality of
14 garments/products under the direct supervision of Quality controller (QC).When PQC department is satisfied on the garments then products go to the Packing/Packaging section. Here garments would be Packing/Packaging by the poly or blister. Then finally cartoon of the garments, based on the ratio which is given from buyer. Following departments are involved with operation/production in Kores (Bangladesh) Ltd: 1. Winding section 2. Knitting section 3. Linking inspection section 4. Trimming section 5. Mending Section 6. wash section 7. Iron section. 8. sewing section 9. PQC 10. Packaging section REQUIRED MACHINERY’S LIST OF Kores (Bangladesh)Ltd : Sl. 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20
Name of Machine Gauge 36¢¢ Bed 3.1/28 Flat Knitting Machine (wild- 3GG horse) 36¢¢ Bed 3.1/28 Flat Knitting Machine (wild- 5GG horse) 36¢¢ Bed 3.1/28 Flat Knitting Machine (wild- 7GG horse) Power Driven Dial Linking Machine 6GG Power Driven Dial Linking Machine 8GG Winding Machine 8 Spindles each Washing Machine 120 Lbs each Drying Machine (USA) 75 Lbs each Hydro Extractor Auto Placket Machine Steam Iron Sewing Machine (Juki) Overlook Machine (Juki) Button Hole Machine (Juki) Button Stitch (Juki) Weighing Scale (Japan) Heavy Weighing Machine (Korea) Boiler (Fulton USA) 470 kg Boiler Stand by (Germany) 01 Ton Stand by Generator 80 kw. (UK)
Qty. 120 Sets 100 ¢¢ 100 50 Sets 68 ¢¢ 13 Sets 03 Sets 02 Sets 03 Sets 04 Sets 24 Sets 06 Sets 04 Sets 01 Set 01 Set 02 Nos 03 Sets 01 Set 01 Set 01 Set
Maintain standard Quality: With our continued and hardworking efforts in maintaining standard quality of the finished garments our perfect quality checking methods directly responsible to the management will certainly meet the customer’s satisfaction. Method consists of following forms: • 1st inspection after knitting the finished garment parts & rectification, • 2nd inspection after trimming with light checking & rectification. • 3rd inspection & rectification after wash iron and then final inspection (P.Q.C) for perfect quality checking & rectification We never compromise with the above for maintaining our goodwill and reputation. We are committed to timely shipment, maintaining 100% fine quality, strict quality control at every stage of production, responding fast to constantly changing demands. Responsibility/task of design section: Based on catalog or by their own innovativeness/ creativity designer could be creating new design products for sampling. As well as they are developed sample as like as original sample or Sketch or measurement sheet.( which is given from buyer) for buyer approval. Effective& efficient as well as innovative or creative design section can bring better result for the company. That’s why Kores (Bangladesh) Ltd established the IN HOUSE SAMPLE PRODUCTION and recruited the high skilled designer and employees for design section. Last three years Production 1998 – 5,18, 400 Pcs 1999– 6,48,000 Pcs 2000 – 7,00,000 Pcs
List of minimum requirement to build a new factory: 1. TRADE LICENCE. 2. PROJECT PROFILE. 3. COMPANY REGISTRATION BY JOINT STOCK COMPANY. 4. TIN AND VAT CERTIFICATE. 5. BANK ACCOUNT. 6. PROJECT AND WORKING CAPITAL LOAN SANCTION FROM BANK. 7. PROJECT PERMISION LETTER FROM BOARD OF INVESTMENT GOVT. OF BANGLADESH.
8. BGMEA MEMBERSHIP CRITIFICATE. 9. DHAKA CHAMBER CERTIFICATE. 10. IRC AND ERC CERTIFICATE FROM CCI. 11. EPB REGISTRATION CERTIFICATE FROM EPB. 12. LABOUR CERTIFICATE. 13. FACTORY LAYOUT PLAN. 14. ENVIRONMENT CERTIFICATE. 15. FIRE CERTIFICATE. 16. FIRE INSURANCE. 17. BOND LICENCE. 19. PASS BOOK FOR DHAKA, EPZ AND CHITTAGONG CUSTOMS. 20. FACTORY FLOOR INSTALATION. 21. ELECTRICITY, GAS, WASA, BOILER CONNECTION IN THE FACTORY BUILDING. 22. TELEPHONE, FAX AND COMPUTER E-MAIL CONNECTION IN THE FACTORY. 23. COMPLIANCE 24. APPOINTMENT OF WORKER, STAFE AND EXECUTIVES AS PER COMPANY ORGANOGRAM. 25. MARKETING. 26. IMPORT & EXPORT. Outbound Logistics Accessory/ finishing products storage or warehousing system :
Whether proper records maintained Whether sufficient lighting/ventilation Whether ample moving space (aisles) Whether fire extinguisher provided
Yes/No Yes/No Yes/No Yes/No
Yes Yes Yes Yes
Whether proper records maintained Whether sufficient lighting/ventilation Whether ample racks properly marked Whether fire extinguisher provided
Yes/No Yes/No Yes/No Yes/No
Yes Yes Yes Yes
Packing strategy/ system of the finishing garments: For packing the finishing garments we follow the two type of packing system. It could be Poly or Blister. Poly : Based on the size, color garments put into the single poly. Blister: When more then one garments put in together within the poly its called Blister. After completed Poly or Blister packing section follow the ratio and based on this garments would be cartooned, are the following process: Cartoon Ratio Solid Color – Solid Side Solid Color – Assorted Side Assorted Color –Solid Side Assorted Color – Assorted Side Marketing& Sales Products of Kores: The products of the project are extremely well received owing their superb quality reasonable prices & maintenance of delivery schedule. Products covering children’s, men’s, women’s, sweater-pullover, cardigan, vest, skirt, overcoat & poncho etc. in any stitches, designs with different types of yarns like Acrylic, Wool, Cotton, Angora, Boucle, Chenille, Popcorn, Lambs wool, Shetland wool, Mohair, Filigree, loop yarn, Smiling, T.T. Viscose, Poodle yarn, Lycra, different mixed and fancy yarns.
STYLE # KBL - 03
1. Description: Women's skirt and cardigan with two pockets & belt. 1 8 lbs/doz. 7 GG. Yarn: 67% Acrylic, 33% Polyester, loop yarn.
2. Description: Women's hooded cardigan with full open zipper & kangaroo pocket, reverse jersey knit, cables at front. 11 lbs/doz. 3 GG. Yarn: 100% Acrylic.
3.Description: Women's pullover, turtle neck, raglan sleeve, 2 x 2 ribs all over. 10.5 lbs/doz. 7 GG. Yarn: 80% Acrylic 20% polyester.
STYLE # KBL - 04 STYLE # KBL - 05STYLE
4. Description: Men's5. Description: Men's6. Description: Men's pullover, troyer neckpullover, crew neck,pullover, high neck, with antique brasscables & diamonds inmulticolor, cables & zipper having leatherfront. diamonds allover. puller, cables &17 lbs? doz. 3 GG.20 lbs/doz. 3 GG diamonds in front. Yarn: Moon ragYarn: 100% Acrylic. 20 lbs/doz. 3 GGWool. Yarn: 100% Acrylic.
Marketing strategy of Kores (Bangladesh) Ltd: Kores (Bangladesh) Ltd follow the different Marketing strategy for different buyer. Marketing strategy for selected buyer or existing buyer: Marketing strategy for selected buyer or existing buyer including with time-to-time communicate with them and try to fulfill all requirement in each order for keeping the long term relationship. Marketing strategy for potential/new buyer: At first, Communicate with the potential/new buyer by issued Business development letter including complete profile of the factory, By this letter Kores (Bangladesh ) Ltd offer to buyer for factory evaluation .After this on suitable time of buyer he/she visit the factory. If
buyer satisfied on the factory then have a chance to getting activities are happen positively.
order from buyer ,if other
Identified consumers needs then produced/delivered product: First kores (Bangladesh) Ltd identified consumerâ€™s needs then produced/delivered product. In garments business identified consumers needs or requirement is very important. Market segmentation of kores: Kores (Bangladesh) Ltd have done market segmentation. By the market segmentation they choose their market in European Union memberâ€™s country, Canada and USA. Main reasons of those market selections are - available buyer is there and they provide/offer the better price.
Dr.Rehfeld, NKD, Kik, KarlRicker, Compesia Ltd (Germany), (Chepou), Golden Penny Vegotex Belgium), (France), Safico, CoraCasino, Opera, Vetura, Creeks,Megatrade ,Complices Holm Rex & (Peacock Jeans Centre Wibra Supermarket Jecypenny Competitive advantage of Kores:
Denmark), U.K), (Holland), Netherlands), (U.S.A.),
20 With our continued and hardworking efforts in maintaining standard quality of the finished garments our perfect quality checking methods directly responsible to the management will certainly meet the customerâ€™s satisfaction. Method consists of following forms 1st inspection after knitting the finished garment parts & rectification, 2nd inspection after trimming with light checking & rectification. 3rd inspection & rectification after wash iron and then final inspection (P.Q.C) for perfect quality checking & rectification. We never compromise with the above for maintaining our goodwill and reputation. We are committed to timely shipment, maintaining 100% fine quality, strict quality control at every stage of production, responding fast to constantly changing demands. We are managing all the paper work, supervising the production from start to end and shipping the goods in accordance with your instructions IN HOUSE SAMPLE PRODUCTION We arrange required yarns/fabrics/accessories as per requirements of our valued buyers and provide samples on specific queries in a very quicker way to support their sales campaigns. All this and much more is a part of our CONCEPT Process of identify buyer / build up relation with buyer: To build up relation with potential/new buyer: At first, Communicate with the potential/new buyer by issued Business development letter including complete profile of the factory, By this letter Kores (Bangladesh ) Ltd offer to buyer for factory evaluation .After this on suitable time of buyer he/she visit the factory. If buyer satisfied on the factory then buyer given to original sample/ sketch /measurement sheet for sample development. If buyer is satisfied on develop sample .Then buyer give the approval & after setting the price he/she give the order. Within this time or in the shipment time several activities will happen &would be required several times to correspondence with buyer. By this correspondence day by day grow up a relation with buyer.
Marketing strategy for off season: For off season Marketing technique for Kores (Bangladesh ) Ltd are-In the off season find out the buyers ( basically those are given the order in off season).It would be lower price. Another off season marketing technique is Subcontract base order shipment. Only for odd season or when our factory is free or hasnâ€™t better order in our hand just these time Kores (Bangladesh ) Ltd respond to lower price offering buyers. 20
Pricing strategy for sweater/garments business: Generally As per garments weight, style, yarn types and required accessories based on these finally setting the price of products. In the following shown how will WIBRA’S running orderPricing strategy
setting the price of Kores (Bangladesh) Ltd in there
Buyer: Wibra Supermarket ART.No-14570011/00 STYLE.No-003.PL ORDER.No-1403729
Yarn: 50/50 (Acrylic/Cotton) Weight: 7-8 Lbs/Doz
Yarn consumption: First select the mid point of Weight. Then, multiple with Wastage Here, mid point of Weight (7-8 Lbs/Doz) = 7.5 Lbs/Doz 7.508% =8.10 Lbs/Doz Now, 50/50 (Acrylic/Cotton) Yarn price = $2.15/Lbs 8.10 Lbs/Doz $2.15/Lbs Yarn price = $ 18.225/Doz Now, calculate the total price of per dozen garments/ Sweater. Yarn price = $ 18.225/Doz Accessories Price = $ 4.00/Doz (Excepted Zipper) Zipper Price = $ 3.00/Doz Bank Charge = $ 2.00 /Doz Cost of making (CM) = $ 14.00 /Doz ________________________________________________________________ Total Price = $ 38.225 /Doz = $ 3.18 / Pcs Selling technique of Kores (Bangladesh) Ltd: Kores (Bangladesh ) Ltd is a 100% Export oriented Garments manufacturer/exporters and buying agent of Garments having good linkage program with garments industries to support import program from Bangladesh.
22 For selling the stock goods, first our Marketing people communicate with the stock buyer. Then provide sample including Packing list & Price to the stock buyer . If buyer accepts it then stock could be selling.
Reason for stock goods: Some of the reason that’s affect for stock goods. These are the following: • Over shipment date or failed to shipment date. • Bad quality or when by the quality company cannot meet the buyer requirement. • Sometimes over shipment date buyer will agree/proposal for air shipment .But total cost & charge of air shipment should be bear of those factory. May be it is better than stock. Buyer found Kores offering from: From website (www.koresbd.com )& e-mail account firstname.lastname@example.org , Internet, BGMEA catalog , FAX, Telephone, mobile ,company brochure etc. Based on the previous performance, better quality, better price offering and maintaining delivery schedule Procedure of after products delivered: After delivered /shipment of products Kores (Bangladesh) Ltd submit commercial document to negotiation bank for payment against Master L/C (Letter of Credit). Commercial document is including as per L/C requirement. Such as – bill of exchange, Invoice, GSP, Packing list, C/O, B/L (Bill of leading), Beneficiary Certificate, Inspection Certificate, and EXP. Service Kores Services Included As one of the best sweater manufacturers in Bangladesh Place all your orders for Bangladesh through our company and you will get a lot of service and support. •
Providing you samples as per your requirement with best price.
Execute export orders maintaining delivery schedules as specified in the L/C.
Arranging yarns & accessories as per requirement of the buyers.
Checking of measurements weight as per spec. sheets & order sheets during the production. Quality Control from a very early start. Our Quality team is directly responsible to the management for perfect quality. Follow up on all steps in the production. Keeping you informed about status of your orders.
• • • •
No goods leave the factory without perfect quality checking & approval from the proper authority MARGIN *Rate of return range is 10-15 Bank outstanding position as 04.11.2004 HPSM & BAIM
HPSM NET OUT STANDING BAIM OUTSTANDING
: Tk.98, 82,959.61 : TK.26, 08,281.75
PSI PSI LIMIT PSI BALANCES
: TK.40.00, 000 : NIL (Adjust in fill)
BB L/C LIABILITY BACK TO BACK L/C LIABILITY BACK TO BACK BILLS LIABILITY F.C. HELD (FOR BB L/C PAYMENT) FBP -
: TK. 26, 93,400 : TK. 1.76,92,200 : TK.1.18.35, 715 : NIL
Bank position August’2004
A. HPSM DISFURSRD : Tk.2, 05 CRORE B. TOTAL PAYMENT : Tk.1, 98 CRORE C. BALANCE OUTSTANDING : TK. 1, 00 CRORE D. PSI LIMIT : TK.40.00 LAC (OUTSTANDING TK 8.00 LAC) E. BAIM OUTSTANDING F. BBLC LIMIT BBLC BILLS LIABILITY FC HELD FBC
: TK.28.00 LAC : TK. 4.00 CRORE (OUTSTANDING TK 1.00 CRORE) : TK. 1.50 CRORE : TK.70.00 LAC : TK. 50.00 LAC
Bank position July’2004 A. HPSM DISFURSRD B. TOTAL PAYMENT
: Tk.2, 05, 04,441.00 : Tk.1, 96, 63,531.00
24 C. BALANCE OUTSTANDING : TK. 1,01,00000,00 D.PSI LIMIT : TK.40.00 LAC (OUTSTANDING TK 8.03 LAC) LOSS/PROFIT OF JUNEâ€? 2004 A. GROSS PROFIT : TK. 26.75 LAC B. NET POROFIT : TK. 11.14 LAC CUMULATIVE LOSS ON 30.05.2004: TK. 138.38 LAC *Rate of return of Kores (Bangladesh) Ltd of last 3 years: Year 2001-02
Amount (TK) -2933510.85
Chairman Managing Director General Manager Manager (Production) Manager (Commercial) Manager (Operation) Manager (Marketing &Merchandising) Merchandiser
Mr. Mustafa Kamal Mohiuddin Mr. Kazi Moazzem Hossian -------------------Mr. Khair Mr. Kabir Ahammed Mr. Rafiqul Islam Mr. Ferdous Akter ----------------------
Company objectives or goals: We intend to serve our customers worldwide with sincerity, goodwill & excellence in gaining name and fame of the company with ultimate goal of making it to a conglomerate. And With our continued and hardworking efforts in the maintaining standard quality of the finished garments our perfect quality checking methods directly responsible to the management will certainly meet the customerâ€™s satisfaction. Maintaining 100% fine quality, strict quality control at every stage of production, responding fast to constantly are changing demands. Our ultimate goal is to make Kores as one of the best sweater manufacturers in Asia. Financial policy & financial supporters of Kores:
As a sweater factory or Buying house Kores (Bangladesh) Ltd maintain there financial policy based on the Master L/C against Back-to-Back L/c. Actually Kores (BD) Ltd working as like as dealer. Master L/C depends on the buyer. Financial Supporter is the following: a) Insurance Company – 1. Megna life Insurance Company. 2. Popular Insurance Company. b) Group Chairman Account records system of Kores: Kores (BD) Ltd keeping there accounting record on Accrual Base accounting system. And using a accounting Software. Total capital or initial investment of Kores (Bangladesh) Ltd: Total Capital or Initial investment For Building, Machinery and all equipment purpose TK 27712000 (Two Crore seventy Seven luck Twelve thousand). Bank Involvement with Kores: Social Investment Bank Ltd. Principal Branch, 15, Dilkusha, C/A, Dhaka – 1000 Fax:-880-2-955901 Tlx:-671557-8 SIBL BJ
Bangladesh. Phone -880-2-9554855/9554822
TO SET UP NEW GARMENTS T0 NEED THE FOLLOWING DOCUMENTS: 1. TRADE LICENCE. 2. PROJECT PROFILE. 3. COMPANY REGISTRATION BY JOINT STOCK COMPANY. 4. TIN AND VAT CERTIFICATE. 5. BANK ACCOUNT. 6. PROJECT AND WORKING CAPITAL LOAN SANCTION FROM BANK. 7. PROJECT PERMISION LETTER FROM BOARD OF INVESTMENT GOVT. OF BANGLADESH.
8. BGMEA MEMBERSHIP CRITIFICATE. 9. DHAKA CHAMBER CERTIFICATE. 10. IRC AND ERC CERTIFICATE FROM CCI. 11. EPB REGISTRATION CERTIFICATE FROM EPB. 12. LABOUR CERTIFICATE. 13. FACTORY LAYOUT PLAN. 14. ENVIRONMENT CERTIFICATE. 15. FIRE CERTIFICATE. 16. FIRE INSURANCE. 17. BOND LICENCE. 19. PASS BOOK FOR DHAKA, EPZ AND CHITTAGONG CUSTOMS. 20. FACTORY FLOOR INSTALATION. 21. ELECTRICITY, GAS, WASA, BOILER CONNECTION IN THE FACTORY BUILDING. 22. TELEPHONE, FAX AND COMPUTER E-MAIL CONNECTION IN THE FACTORY. 23. COMPLIANCE 24. APPOINTMENT OF WORKER, STAFE AND EXECUTIVES AS PER COMPANY ORGANOGRAM. 25. MARKETING. 26. IMPORT & EXPORT. Member of the business associations: Kores (BD) Ltd is a member of BGMEA (Bangladesh Manufacture & Export Association). Also Kores (BD) Ltd got ISO 9001: 2000 certificates. Process of joining in BGMEA: First, Collect to registration form of BGMEA To deposited Taka.200 to BGMEA account related bank. 26
Then submit to the following documents with completed registration form. Required documents are: a. Trade License. b. Board of Investment certificate “BOI” (Registration Copy). c. Machineries Invoice. d. Bill of lading (B/L) entry e. Import L/C (IL/C) copy. f. Fire Insurance. g. Photo draft of all directors. h. Article of memorandum i. Bank solvency certificate. j. Factory layout. Human Recourse Management HRM practice in Kores (Bangladesh) Ltd: In kores (Bangladesh) Ltd concern of Magura Group till separate Human Recourse Management (HRM) is not established, but total HRM activities of this Group are doing under Administration department properly. Kores (Bangladesh) Ltd as well as Magura Group realized the effectiveness& advantage of HRM practice in modern business tremendously. And very soon kores (Bangladesh) Ltd as well as Magura Group will start separate HRM section. Now, Administration department is involved with the HRM activities. Recruitment policy in Kores: After approved requisition by management then First, Paper advertisement and collect Application from applicant, then issuing Interview card and to applicant. After that, applicants are sit for Interview. From here company primarily select some candidates for Viva voice .From Viva voice finally Selected of employee. Then issuing appointment letter to them. Training facility & development program in kores: On the job training and different training program into the outside organization is arranged for improving the employee’s skill. Both on the job training and off the training system is followed in this group. There are many development programs are arranged, like-Site visit, Weekly meeting, seminar etc. are held to increase employee’s skill. Hiring or fairing system in kores: In some cases hiring and firing systems are followed in this company is their own style, but the company act is adopted in generally. Remuneration /compensation system:
28 There are two types of system are existing in kores (Bangladesh) Ltd as following: a. Remuneration system for the advisor and part-time officials. b. Monthly salary system for the general employee appointed temporary or permanently. Technology development Cope with changing or technological development: In fast changing & competitive world, Kores (Bangladesh) Ltd started our success winning journey with the most modern machineries from USA, Germany, Japan, Taiwan and Hong Kong manned with highly skilled technical production team having many years practical experience behind them. Types of technology/ Machinery in use at Kores factory: AnsSl. Name of Machine Gauge 01 36¢¢ Bed 3.1/28 Flat Knitting Machine 3GG (wild-horse) 02 36¢¢ Bed 3.1/28 Flat Knitting Machine 5GG (wild-horse) 03 36¢¢ Bed 3.1/28 Flat Knitting Machine 7GG (wild-horse) 04 Power Driven Dial Linking Machine 6GG 05 Power Driven Dial Linking Machine 8GG 06 Winding Machine 8 Spindles each 07 Washing Machine 120 Lbs each 08 Drying Machine (USA) 75 Lbs each 09 Hydro Extractor 10 Auto Placket Machine 11 Steam Iron 12 Sewing Machine (Juki) 13 Overlook Machine (Juki) 14 Button Hole Machine (Juki) 15 Button Stitch (Juki) 16 Weighing Scale (Japan) 17 Heavy Weighing Machine (Korea) 18 Boiler (Fulton USA) 470 kg 19 Boiler Stand by (Germany) 01 Ton 20 Stand by Generator 80 kw. (UK) Training program for operator, when implement a new technology /machinery: When new technology /machinery would be implementing then Kores (Bangladesh) Ltd arrange the training program for operator. Although as a BGMEA member our operator/employee joins the several BGMEA training program. Procurement
Process of purchasing inputs, such as-materials, supplies and equipment: After get the order from buyer then Marketing &Merchandising section communicate with the Dying factory& Accessories supplier. And Marketing &Merchandising manager or Merchandiser consumption of Yarn as per buyer order. Then order to Dyeing factory for Lab-dips development. Here order to those Dying factories which provide the lower cost and better quality& due time delivery. Before Lab-dips order Merchandiser must collect original sample of Yarn / Color swatch / Panton.no from buyer. And given some original swatch to dyeing factory for Lab-dips development as like as original swatch. After developed of Lab-dips dyeing factory submits for approval from buyer by the Marketing &Merchandiser. Here those shades get the approval from buyer. This shade goes to the bulk production. Purchase to other accessories, Marketing &Merchandising manager or Merchandiser collect the original sample of all required accessories, Such as zipper, button, main label, size label ,care label, hang tag, price tag, poly, blister& carton from buyer. Then communicate with the different supplier for sample development. Which accessories factory provide the lower cost and better quality& due time delivery. We order to those accessories factory for required accessories sample development. After developed the accessories (zipper, button, main label, size label, care label, hang tag, price tag, poly, blister& carton) accessories factory submit for approval from buyer by the Marketing &Merchandiser those shade get the approval from buyer. This shade goes to the bulk production. After approval sample of yarn and accessories from buyer then Kores (Bangladesh) Ltd opened Back-to-Back L/C against master L/C for the accessories supplier. Here, Bank accept 75% Back-to-Back not more. Generally Kores (Bangladesh) Ltd purchase of inputs-on cash or Back-to-Back L/C. The company is in a position to open Back to Back L/C for import of yarn and raw materials within a couple of days form the date of receipt of Master L/C for execution of the Export orders.
Procurement system/activity: After get the order from buyer then Marketing &Merchandising section communicate with the Dying factory& Accessories supplier. And Marketing &Merchandising manager or Merchandiser consumption of Yarn as per buyer order.
30 Then order to Dyeing factory for Lab-dips development. Here order to those Dying factories which provide the lower cost and better quality& due time delivery. Before Lab-dips order Merchandiser must collect original sample of Yarn / Color swatch / Panton.no from buyer. And given some original swatch to dyeing factory for Lab-dips development as like as original swatch. After developed of Lab-dips dyeing factory submits for approval from buyer by the Marketing &Merchandiser. Here those shades get the approval from buyer. This shade goes to the bulk production. After bulk production is dying factory delivery of the yarn to Kores factory at Sanarpar, Shiddirgonj, and Narayangonj. After receiving the yarn from the dyeing factory, then factory activity will start from the winding section and section by section it will be proceed for the finishing products. Within this production schedule Merchandiser follow-up the daily production report because of the due time shipment. And arranged to other required accessories. For this collect the original sample of all required accessories, Such as zipper, button, main label, size label, care label, hang tag, price tag, poly, blister& carton from buyer. Then communicate with the different supplier for sample development. Which accessories factory provide the lower cost and better quality& due time delivery. We order to those accessories factory for required accessories sample development. After developed the accessories (zipper, button, main label, size label, care label, hang tag, price tag, poly, blister& carton) accessories factory submit for approval from buyer by the Marketing &Merchandiser those shade get the approval from buyer. This shade goes to the bulk production. After bulk production accessories factory is delivery all accessories to Kores factory within the given time. Kores Marketing & Merchandising section follow-up and monitor the all activities of Production on daily basis. And time to time communicate with the buyer about the production as well as the due time shipment or if any other incidental situation will happen.
Process of Selecting the suppliers and name of them: After get the order from buyer then Marketing &Merchandising section communicate with the Dyeing factory& Accessories supplier for Lab-dips & sample development. After approval of Lab-dips & required accessories sample from buyer. Then order for bulk production. Here order to those Dying factory& Accessories supplier those provide the lower cost, better quality& due time delivery. Name of the Dyeing factory & Accessories supplier of Kores (Bangladesh) Ltd : Yarn supplier 30
Dong Bang Textiles Ltd House No# 04 (2nd floor) Road No#04. DOHS Banani. DhakaTel: 9887155, 8814246. Fax: 9887007 E-mail : email@example.com
ML Dyeing Ltd ML Tower (5th floor) 1, east Rampura. DIT Road Dhaka-1219 Tel: 9337472, 9338232. Fax: 9337862. E-mail : firstname.lastname@example.org
S.Suhi Industrial Park Ltd Plot # 202(2nd floor), H#07 Prime view, Gulshan Avenue Dhaka-1212 Tel: 9880571, 9884422. Fax: 8816391 E-mail : email@example.com
Baily Yarn Dyeing Ltd 240, Elephent Road Dhaka-1205 Tel: 8624270, 8612408. Fax: 8613695 Mobile: 0189288311 E-mail : firstname.lastname@example.org
Labib Dyeing Miles Ltd House#133(1st floor), R#01, DOHS. Baridhara, Dhaka. Tel: 9893065, 9861930. Fax: 8850243
O.Skohatex (BD) Ltd Omor Sultan Bhaban House#16, Road#04, Sec#03 Uttara, Dhaka-1230 Tel: 8913304, 5920449 Fax: 8912804 E-mail: email@example.com
Ring Shing Textiles Ltd H#5, R#6, Block-K Baridhara Model Town Dhaka-1212 Tel: 9885580-1, 9885586 Fax : 9888885587 E-mail : firstname.lastname@example.org
Accessories Supplier Kartel Asia House#416, Road#30 New DOHS, Mohakhali Dhaka-1212 Tel: 8853693, 8855221 Fax: 8815508 E-mail: email@example.com
Ganky Accessories Haque Chamber (6 th floor), 89/2 panthapath Dhaka-1215 Tel: 8150985 Fax: 8150986 E-mail: firstname.lastname@example.org
Exim business Ltd 11/2, Toyanabee Circular Road (Ground floor), Motijheel C/A Dhaka-1000 Tel: 7161169, 7161317. Fax: 7161317 E-mail: email@example.com
Al-Amin Enterprise 19, Indira Road (1 st floor) Farmgate, Teggon. Dhaka-1212 Tel: 8157296 Mobile: 0189254033 Fax: 8157296.
Fabin Trade Ltd Hosaf Tower (10th floor) 9, Mohakhali C/A, Dhaka-1212 Tel: 9883281, 9883284 Fax: 9883278 E-mail: firstname.lastname@example.org
Down Town Trading Agency 28/H, Toyanabee Circular Road 1st floor, Motijheel C/A Dhaka-1000 Tel: 9568240, 7162576 Fax : 9568240 Mobile : 0172239652.
Dhaka Needle Crafts Ltd (Embroidery Supplier) 115/ka, Pisciculture Housing Society Shamoly, Mohamadpur. Dhaka-1207 Tel: 8116425 Mobile: 0173009206.
Types of transportation to use in business & managing system Generally Kores (Bangladesh)Ltd using in their business Car, Micro bus, Truck, Pick-up van, Cover van, etc for transportations. And Kores (Bangladesh) Ltd Transportations Cost (Approximately) Name
Dhaka - Gazipur, Moymanshing, Dhaka-Chitagong Savar, Narayangong...
Open Truck Pick-up-van
Bangladesh Europe 20-container $1400-1500 40-container $2700-2900 40-high Q $2900-3000
to USA +$100 addition With Europe.
to Hong Kong
New York Air
BD To UK
Standard production capacity of each section in daily basis : /Per Operator
Normal 18-20 Doz/P.O
Critical 3 Doz/P.O
Critical Style (Pcs)
Simple Style (Pcs)
34 Pcs/P.O Mending
If, Linking & Knitting is ok,
Then, 3000+ 500 Pcs
Standard production capacity of finishing products in monthly basis: Present Production Capacity 3gg 5gg 7gg
75,000 pcs/Month (3,5 & 7 Gauges) . 30,000 Pieces 25,000 Pieces 20,000 Pieces
Export Performance of Kores (2004)
Month January-2004 February-04 March-04 Appril-04 May-04 June-04 July-04 August-04
Quantity 16,096 20,320 42921 32120 35472 31081 38112 77180
Value $ 41,060.32 $ 76,320.00 $ 98,398.60 $ 100123.00 $ 117812.10 $ 91904.46 $ 163231.60 $ 326155.00
4. SWOT ANALYSIS A SWOT analysis is overall evaluation of the company’s Strengths, Weakness, Opportunities and Thereat. Strengths and Weakness are internal value creating (or destroying) factors such as assets skills or recourses etc. And Opportunities and thereat are external value creating (or destroying) factors a company can’t control. 4.1 Strengths of Kores: Kores factory build on their own property of Magura Group 34
Kores factory is well equipped with skilled, and expertise and productive manpower. We are under commitment on-time shipment and 100% fine quality In house sample production We arrange required yarns/fabrics/accessories as per requirements of our valued buyers and provide samples on specific queries in a very quicker way to support their sales campaigns. Experienced management team New, innovative product We are here in Dhaka-just on the spot We have a good reputation for fast communication Quality process and procedures We are managing all the paper work, supervising the Production from start to end and shipping the goods in accordance with instructions We are a part of big group financially solvent to run big volume orders The products of the project are extremely well received owing their superb quality reasonable prices & maintenance of delivery schedule.
3.1 Weakness of Kores: After shipment of the products marketing department didn’t collect the post purchase behavior of buyer. Lack of marketing expertise Short number of employee Require more proper coordination between the different departments. Failing to keep commitment for shipment to the buyer in due rime. Sometimes delay payment to supplier. The subordinate are not allowed to take part in the decision or policy making meeting. The decision always flow top to bottom. salary structure and other facilities of the employees is not competitive compare to renewed sweater industry Design section is good but my internee period I could not saw their develop sample approval from buyer at the first time. So, have a chance to improvement in there. Location of the kores factory Some times products quality should not fulfill buyer requirement Damaged reputation – reputation of kores product is not very high. Power centralization by the top management. 3.1 Opportunities of Kores: Developing market area (more county under EU, USA, china, etc.) Kores is a concern of Magura Group , By this reputation it should be go to joint venture with global renowned industry, Can expand their business area by establish the woven, knitting etc. Removal of international trade barriers A market led by a week competitor
36 Opportunity to turn the young educated executive team a dynamic one by initiating a good corporate culture Attain different trade fare and get new idea related with today’s business. 3.1 Thereat to Kores: New garments enter in the market regularly. Government tax and vat structure is not congenial, double taxation exists. Because of the more competition among the garments industry buyer get the more option .That’s why buyer offering lower price. Competitor offers a new, innovative substitute product. Increased trade barriers Taxation may be introduced on your products .delayed payment from buyer create dreadful situation of company’s liquidity and future financial budget plan. Decreasing law and order situation extortion and terrorism could be happen in factory. Switching jobs by the skilled and dedicated employees due to underserved salary and benefits and power centralization by the top management. Conclusion Value chain as a form of identifying ways is to create more customer value. The firm’s success depends not only on how well each department performs its work, but also on how well the various departmental activities are coordinated. The linkages between activities are crucial for corporate success. The linkages are flows of information, goods and services, as well as systems and processes for adjusting activities. Their importance is best illustrated by the kores example: If, Only Kores Marketing section delivers the order & shipment forecasts for the next period to all other departments in time and in reliable accuracy, procurement will be able to order the necessary raw materials or accessories for the correct date. And only if procurement does a good job and forwards order information to inbound logistics, only than operations will be able to schedule production in a way that guarantees the delivery of products in a timely and effective manner – as pre-determined by marketing. In the result, the linkages are about seamless cooperation and information flow between the value chain activities. This discussion reviews the management of value chain advocates to align strategy, finance, information flow, human systems and decision-making processes to achieve the greatest value for the Kores buyers. Regular monitoring and top down, bottom up feedback allow for continuous improvement. Recommendation
The Recommend on the following areas should be: • A marketer can rarely satisfy everyone in a market. So, First task of Kores marketing department must be market segmentation and identity these market which present the greatest opportunity for them .Then setting their target market , after that for each chosen market Kores develops their market offering. • Kores marketing department must try to understand the buyer needs, wants and demands. • Develop the long term relationship with key parties- buyers, buying house and suppliers. • Kores management to build a marketing program to achieve the desires objectives. To achieve the objectives set the effective marketing mix (product, price, promotion and place). • To achieve the ultimate objectives, it’s very essay to follow the proper marketing concept. • That’s will better for Kores to work with repeat buyer than new buyer. Because one estimate is that attracting a new customer can cost 5 times as much as pleasing an existing one. Also, it might cost 16 times as much to bring the new buyer to the same level of profitability as the lost buyer. • So, customer retention is thus more important than customer attraction. • I request to kores to follow modern-customer orientation-organization chart then traditional organization chart. • Hopefully kores define their mission .I would like to say you can shared your mission statement with manager, employees. A clear mission statement guides the employee to work independently and yet collectively toward realizing the organizational objectives. • By the growth shared matrix; BCG (Boston consulting group approach) Magura Group measure the annual growth rate of the market is whish business operate effectively. • Today’s business world moving very first by the digital revolution. The impact of these kores can implement the data based marketing. • Survey on buyer intentions regarding plant, equipment and raw materials. • Take an expert opinion regarding garments business. • Identify their position based on the product life cycle and position of their competitors, and then take a corrective action. • Kores Bangladesh can developed their design section by create the innovative and unique products design for the marketing. For this purpose you can contract with a professional fashion designer in Bangladesh & abroad. • You can improve your procurement department for the better coordination with other section. • You can set the effective promotional tools for buyer awareness about your business. In this purpose kores can rearrange their web site and including more information about kores. • Deciding marketing communication style. • In garments business relationship marketing should be very much effective, Kores can follow this style. • Build a sound relation with marketing department to others department.
• • • • • •
As early as possible you will implement HRM department for your business. It could be bring better result for you. Kores management team can recruit the effective & efficient manager for their business. And ensure its right people for the right position’. Make you employees fell important .Human being wanted to be appreciated and like to fell important. Allow employees to participate decision making that affect them .They can increase productivity, commitment to works. Guide rather than order. Set a good example, the top management set the style for his people. Subordinates always watching their boss. Be a person worth coping. Reward should be contingent on performance.
“You can buy a men’s time, you can buy men’s physical presence at a Given place. But you can not buy his enthusiasm, initiative and Loyalty”- CLARENCE FRANCIS •
By follow the value chain management in your business properly it can maximize value creation consistently. • Value chain management increase corporate transparency. • It’s helps organizations deals with globalize and deregulated capital markets. • Value chain management improves internal communication on strategy. • Value chain management prevents under valuation of the stock. • To follow the value chain management facilitates to improve decision making. • Its helps to balance short-term, mid-term and long term trade off. • If you follow the value chain management, it could be improve s the allocation of recourses, streamlines planning and budgeting. • Value chain management helps better deal with increased complexity and greater uncertainty and risk. Part-1. Reference Part-2. Website visit Part-3. Name & Designation of Respondents Part-1. Reference Books Kotler, Philip. (2003) Marketing Management ; Prentice Hall Upper Seddle River, New Jersey 07458- Eleventh Edition. Newstrom, John W. & Davis, Keith. (2002)Organizational behavior ; McGraw-Hill Irwin Companies. Inc. – International Edition. Kothari ,C.R. (2003-04) Research methodology ; Wishwa Prakashan, New Delhi 110 002- Second Edition
D.Daniels, John. Radebaugh, Lee H. Sullivan, Daniel P. (2004) International Business; Pearson Prentice Hall Upper Seddle River, New Jersey 07458- Tenth Edition. Cravens, David W. & Piercy, Nigel F. (2003) Strategic Marketing ; McGraw-Hill Irwin Companies. Inc. – International Edition. Schiffman, Leon G. & Kanuk, Leslie Lazar. (2004) Consumer Behavior Prentice-Hall of India New Delhi – Eight Editions Islam, K.A. (2001)Human Recourse Mgt Practice in Bangladesh ; Ahasania Books, Dhanmondi, Dhaka-First Edition
Lesikar & Pettit (2002) Business Communication;