Report

On
Partex Group of Bangladesh
 Submitted to:

Piana Monsur Mindia

Lecturer

Submitted by:

Group members:

Name Id
o Zerin Tasnim 111 143 098
o Papia Sultana 111 151 388
o Afifa Zahid 111 151 151
o Nowshin Naina 111 151 237

Date of Submission: 30th august, 2015

Course code: MGT 1307

Course Name: Principles of Management

Section: NS

UNITED INTERNATIONAL UNIVERSITY

 LETTER OF TRANSMITTAL

30, Aug 2015

Piana Monsur Mindia

Lecturer
Department of Business administration
United International University
Dhaka.

Subject: Submission of report on Partex Group of Bangladesh.

Dear Madam,
It is our great pleasure to submit the report on Partex Group of Bangladesh.
Throughout the study we have tried with the best of our capacity to accommodate as
much information and relevant issues as possible and tried to follow the instructions as
you have suggested. I sincerely believe that it will satisfy your requirements and will
also serve the purpose of our report.
We are grateful to you for your guidance and kind cooperation at every step of our
endeavor on this report. we shall remain deeply grateful if you kindly go through the
report and evaluate our performance.

Sincerely Yours,
Zerin Tasnim Id# 111 143 098
Papia Sultana Id# 111 151 388
Afifa Zahid Id# 111 151 151
Nowshin Naina Id# 111 151 237
 Acknowledgment

Any comprehensive work such as this must owe credit to a multitude of people. I should
acknowledge the contributions of the pioneers in the communication field, especially
those whose teachings have become a part of our thinking. I should acknowledge also
those contributions in the field that helped as reviewers for this report of the Partex
group of Bangladesh. This presentation report has been possible only because of kind
cooperation of my group members. Now thanks to the entire dedicated career
professionals and authors who helped me collect the ideas and case studies included in
this assignment, as well as the many people who shared their guidance. The level of
competitiveness on the market is getting higher, the quality of services and products
does not differ greatly, but the Partex Group expectations are constantly growing. I am
grateful to my group members, who helped me in many ways for making this report. I
am grateful to that institution which provides me important information. I also grateful to
my institution for support and special thanks and most important, I would like to thank
my course instructor Piana Monsur Mindia for bearing with me throughout this
demanding process because the report would not have been possible without her. At
last I would like to thank all my group members for their constant support and guidance.
 Table of Contents Page No.
Letter of Transmittal 3

Acknowledgement 4

Executive Summary 6

Introduction: 7
i.Origin of the report-
ii.Methodologies-
Chapter one:
i. History 7
ii. Background 8
iii.Product description 8-9
iv. Ethical practices 10
v. CSR activity 10
Chapter two: Planning
i.Mission & vision 10
ii.Organization Strategy 11-12
iii. SWOT analysis 12-14
iv. PEST analysis 14-16

Chapter three: Organizing

i.Organizing 16
ii.Organizing Chart 17
iii. Chain of command 17-18
iv. Departmentalization 18-19

Chapter four: Leading & Motivating

i.Leading 19-20
ii. Motivational environment 20-21
Chapter five: Controlling
i.Types of control 21
ii.Levels of control 21-22
iii. Financial control 23
iv. Budgertoy control 23-24
Chapter six: Conclusion & recommendation 24
Bibliography 24

Executive Summary

Partex group is among the large Bangladesh private sector manufacturing and
service based enterprises, owning and operating over twenty units giving value for
money to all customers. The group started modestly in 1959 in tobacco trading and
with prudent entrepreneurship of our Founder Chairman Mr. M.A. Hashem today
they have a stake in tobacco, food, water, soft drinks, steel container, edible oil,
wooden board, furniture, cotton yarn and the IT sector. As companies become
nation or international in scope, they need more information or larger, more distant
markets. As sellers use more complex marketing approaches and face more
competition, they need effectiveness of their managing tools. Managers need more
up-to-date information to make timely decision. In crying out market analysis,
strategies, planning, organizing, leading, and motivating and control managers need
information at almost every turn. They need information about customers,
compactors and other forces in the market place. Increasingly marketers are viewing
information net just as input for making better decision. But also as an important
strategic asset. Since the real life business is always very complex and competitive,
every business has to face the interns competition and those who can successfully
operate within this critical situation can become and brand awareness is very
important.
Introduction:
Origin of the report:
As we are doing Principles of Management, our course instructor Piana Monsur Mindia
has instructed us to prepare report on Partex furniture of Bangladesh.

Methodology:
Secondary Data:

1) Internet: www.google.com, www.wekipidia .com

2) Industry analysis: Collected information from marketing report, magazines, running

newspaper.

Chapter One:
History of Partex Group of Bangladesh:
The group started modestly in 1959 in tobacco trading and with prudent
entrepreneurship of our Founder Chairman Mr. M.A. Hashem today we have a stake in
tobacco, food, water, soft drinks, steel container, edible oil, wooden board, furniture,
cotton yarn and the IT sector. After Bangladesh was established our Chairman set up
MIS Hashem Corporation (Pvt) Ltd. in Chittagong city meeting the large demand of food
and materials needed for sustaining the needs of a new nation through imports. From
importing to import substitution was the next logical step and the stepping-stone into the
manufacturing sector, which has matured to the multimillion dollar diverse investment of
the Partex Group today.A dedicated work force and committed board members led by
our Chairman and backed by a market oriented corporate strategy has been the
cornerstone of their success. It is a dynamic organization always exploring new
ideas and avenues to expand and grow further. Star Particle Board Mills in the
sixties pioneered an eco-friendly industry to reduce pressure on our scarce forest
recourses. It is an unique combination of environmental protection and
commerce; belaying most doomsayers who claim the two to be at odds. The one
score and ten-year successful perpetuation of our timber substitute products not
only speak volumes of the foresight of Partex's founders but also their vision of
the future business in particular field. These particleboards go on to produce
veneered boards of various design and texture. Also door panels both plains and
decorative in various famishes and sizes. In addition their produce special
furniture boards, stylish furniture and even various plywood on our range of
products.

Beside, in house and outside training, recruits business graduates from reputed
universities as management training for mainstream banking to enrich quality of
human resources contributing towards operations effective and long-term
sustainable results.

Background:
Established in 1959, Partex Group is one of the leading industrial and trading groups in
Bangladesh. It consists of 17 concerns. Over 7,000 employees are working in this
commercial group. In 2000-2001 it's targeting turnover is Tk. 8,000 million and
estimated growth rate 15% per annum. Net worth at current market price  is Tk. 7,500
Million. Over 350 distributors around the nation are engaged in distributing the products
and services. There are over 45,000 outlets where products are marketed. Partex's
movement is many-fold. It extends its network in various sectors extended from milk to
steel products. Let's be familiar with some of the concerns of Partex Group.

Product Description:
Danish Condensed Milk Bangladesh Ltd covers two major production ranges,
"Danish" Sweetened Condensed Milk and "Silver Cross" Full Cream Sweetened
Condensed Milk, both in tin containers of 397 grams. The quality of the products is
maintained stringently at all levels under the technical assistance of Australian Dairy
Corporation

Danish Milk Bangladesh Ltd was launched with the aim of marketing high quality full
cream milk powder throughout the nation. The company markets "Danish" brand spray
dried full cream milk powder both in 500 grams and 1000 grams sachet packs, enriched
with vitamin A and D.

Danish Fruit Juice produces highest quality fruit drinks under the brand name Danish
Fruit Juice. Bangladeshi customers have welcomed the mango, fruit cocktail and
orange flavored drink, hygienically packed in 250ml aseptic packs

Partex Beverage imports and markets the products of Royal Crown Cola Co.
International. It has popularized “RC” beverage brand in every corner of Bangladesh.
Although registered as a Public Limited Company, no public offerings have been made
as yet by Partex Beverage.

Amber Cotton Mills Ltd manufacture 100% export quality carded and combed knit
cotton yarn of various count. Amber has a complete range of the latest Uster testing
laboratory equipment that ensures the quality of the yarn.

Star Particle Board Mills Ltd. produces particle boards, veneered boards, cabinet
boards (timber framed), vinyl boards and plywood in various thickness, size and
densities. All items are produced within the group to guarantee durability and
performance.

Russell Steel Mills Ltd. is an outstanding manufacturer of steel based products. It

produces and makes fully galvanized corrugated iron sheets in different gauges and
sizes.

Partex Real Estate stepped forward with a group of experienced and thoughtful

resources personnel to fulfill the desires of the inhabitants. This company is devoted to
the development of estates of different conditions.

Hashem Corporation is a Chittagong based trading house, which imports Iron, Steel,
Cement, Sugar, Wheat, Dal, Spices, Oil, Paper, etc.

Ferrotechnic Ltd. produces substitutes of wood products for construction and fixtures.

The group also produces high quality furniture from Partex board products. The
company has earned a reputation for its high standard and superior finishing in all of its
products in the field of exclusive furniture, decor and design.
 Corvee Maritime Co. Ltd. the company is now well-equipped with a modern oil tanker
of 1000 M.T. capacity. It is constantly updating its service. The vessel primarily carries,
CDSO, fat products and other oil products.

Ethical Practices of Partex Group:

Partex Group is one of the renowned groups of companies in Bangladesh. It has
gained such a position in today’s market field because of their hard work, proper
planning, guidance, not involving in any unethical activity and so on. It will
continue to strengthen the efforts, aiming to realize continuous growth through
the thorough application of its principles of customer-first, good quality and
affordable price. It will also employ innovation based on knowledge and
continuous improvement to earn the satisfaction of its customers and to
contribute to the kind of future mobility that world needs.

 Live up to our commitments.

 Trust and respect to each other.
 Work as a team.
 Take initiative to exceed standards.
 Transparent and fair in all our dealings.
 Share social responsibility.

Corporate Social Responsibility:

We strongly believe that being country’s one of the largest entrepreneurs we have
duties to boost up others’ potentials. That is why Partex Group always tries to join
hands together with the educational forums, environment and health related issues.

Our engagement with different women empowerment programs has changed many
lives. But the real credit for position change is always to those whom we have enabled
on the path of sustainable and inclusive growth and well- being.

Chapter Two:
Planning:
Partex Vision: To be the country’s most preferred enterprise of building materials,
housing, furnishing and fashion wears providing stronger, safer and lifestyle products.
Achieving its business vision through growth in market reach, increasing operation size,
international distribution, total service and consistent branding activities by the being
most customers focused & Innovative, cost effective & efficient, environmentally
responsible & quality concerned company in the business.

Mission: To combine aggressive strategic marketing with quality products and services
at competitive prices in order to provide the best value for consumers. Grow profitable
through superior customer service, product innovation, quality and commitment.

Organizations Strategy: The strategy of Partex group is stated below:

Corporate Strategy: Partex has vertically integrated both into the Panel-based and
timber-based furniture industry because of their strength in raw material supply.

Competitive Strategy: Because of vertical integration, Partex enjoys some

competitive advantage compared to its competitors.

 Partex has invested Tk.100 crore in the furniture industry and this huge investment
acts as an entry barrier to its potential new entrant.
 Partex will also be able to realize Economies of scope since they are fully integrated
in the furniture industry i.e. from producing raw materials to distributing them.

Industry:
Corporate Office:
Sena Kalyan Bhaban (16th floor),
195 Motijheel C/A, Dhaka- 1000, Bangladesh.

Partex Factory:
Madanpur, Bandar, Narayanganj, Bangladesh.
Phone: +88027647706-7, 7648006-8, 7647724
 Fax: +88027647725
E-mail: spbml@psgbd.com

Customers of Partex: The customer is the next person downstream in the channel
of distribution. Thus the customer for the subject firm in our case was previously the
manufacturer while now it is the wholesaler and the final consumer. Such as, Partex
furniture industries ltd. primarily exists in different areas – consumer like different types
of boards (particle board, veneer board, melamine faced chip board, plywood, PVC
sheet) doors and door frames & furniture.

Competitors of Partex: Partex Group has the ultimate responsibility to develop new
ideas and make ways to take the country to a new height. It emphasizes on
developing more and more facilities for much bigger industrialization and on
introducing innovative products and services. That’s why there are many competitors.
Particle Market:
 Star Particle Board Mills Limited
 OTOBI
 Foreign imported furniture
 Akij Particles

SWOT Analysis: The SWOT analysis is an extremely useful tool for understanding
and decision- making for all sorts of situations in business and organizations. SWOT ia
an acronym of STRENGTHS, WEAKNESS, OPPORTUNITIES, THREATS. The SWOT
analysis heading provide a good framework for reviewing strategy, position and
direction of a company or business proposition. Partex, as a leading group in
Bangladesh, also maintains SWOT analysis perfectly. The SWOT analysis of partex

Group is given below:

STRENGTHS:

 Material transportation process is easy

  Available of raw material most of the time
 Training provided in a regular basis
 Consistent with missions, as employment is generated
 Technologically advanced in terms of developing new products
 Capacity planning possible in panel based furniture
 Cost and quality can be controlled as they are already in the supply side
 Vertical integration gives competitive advantage
 Forecasting can be done in relation to the following factors about the demand
cycles
 Own supply channel ensures smooth flow of RM
 Labor and technical teams ensure quality and design.

WEAKNESS:

 Manpower turnover
 Dust environment
 Competitor increasing
 Scarcity of raw material something
 Research is mainly observational and participatory
 Initial research suggested that there is demand in this business but partex did not
plan its entry to take advantage of its full potential.
 Programs and plans merely implied and not clearly stated
 Demand fluctuations have been taken as a problem factor preventing capacity
planning

OPPORTUNITIES:

 Possibility for being highly consolidated in the future due to its size, investment
and integration
  Partex already has a brand image
 High capital requirements for entry
 Threat of substitutes
 Close substitutes are not performing in the same market segment
 Partex gauges expected retaliation
 The current differentiation strategy of Partex strong enough to bar both new and
existing competition.
 The brand furniture is growing
 Demand is increasing every year by 15%.

THREATS:

 New companies are coming

 Other company offer more packages
 Breakdown in old machine
 OTOBI and HATIL already have brand loyalty in panel based furniture
 Economies of scale and experience curve effects are not present in timber based
furniture
 High capital investment leading to high exit barriers
 Timber based furniture industry is in mature stage

Pest Analysis: The PEST analysis is a useful tool for understanding market
growth or decline, and as such the position, potential and direction for a business. A
PEST analysis is a business measurement tool. PEST is an acronym for POLITICAL,
ECONOMIC, SOCIAL and TECHNOLOGICAL factor, which are used to assess the
market for a business or organizational unit.

POLITICAL FACTORS:

 Political change impact on production for example during Army government,

company was off for 15 days
  Tax rate also impact on export or import of product or plant machinery
 Government regulation on using tree and resin also impact on production
 Political stability-No
 Risk of military invasion- Yes
 Legal framework for contract enforcement
 Tread regulation and tariffs – controlled
 Anti-trust laws
 Pricing regulation –No
 Taxation- tax rates and incentives – Applicable

ECONOMIC FACTORS:

 Customer services are very fast

 Immediate available of product
 Trouble free operation of product
 Type of economic system in countries of operation- Average
 Government intervention in the free market- Yes
 Interest rates-High
 Inflation rate- Average
 Unemployment rate-High
 Economic growth rate-High
 Labor cost – Low
 Efficiency of financial markets – Yes

SOCIAL FACTORS:

 No social or cultural factor or forces affect production of particle board

 Population, age, gender, education nothing impact on production of particle
board
 Environmental forces may affect because weather condition is important factor
for production and also decreasing forest is harmful for environment
TECHNOLOGIAL FACTORS:

 Partex Star Group is technologically updated we are using internet or intercom

for communication
 Recruiting manpower by using internet
 Attendance registered digitally
 Using ERP/Overall control
 Using word’s most updating technology for production
 Most of the machines are PLC control
Chapter Three:

Organizing:
The Partex Group is structured in sub-holding companies, management units,
concession companies and service companies that provide to the joint ventures and
operating companies in which the group participates all the necessary advice and
financial, technical, management and human resources support that they require, in
accordance with the strategy and guidelines defined by the Holding. Partex Group is
among the large Bangladesh private sector manufacturing and service based
enterprises, owning and operating over twenty units giving value for money to all
customers. The group started modestly in 1959 in tobacco trading and with prudent
entrepreneurship of our Founder Chairman Mr. M.A.Hashem. Today we have stake in
tobacco, food, water, soft drinks, steel container, edible oil, wooden board, furniture,
cotton yarn and the IT sector. After establishment, our Chairman set up M/S Hashem
Corporation (Pvt) Ltd, in Chittagong meeting the large demand of food and materials
need for sustaining the needs of a new nation through imports Today the group has
over twenty family owned private limited companies with a sizable turnover. It’s a
dynamic organization always exploring new ideas and avenues to expand and grow
further.
 The organizational chart of Partex Group

Board of Directors

CEO

Production Financial Marketing Human Customer

Departmenta Department Departmenta resource service
l Managers al Managers l Managers Department Department
al Managers al Managers

Production Financial Market Training Sales

planning planning research group account
departmen departmen departmen service
t t t departmen

Recruitin
g team
Industrial Budgeting Market Individual
design department analysis customer
departmen departmen service
t departmen
Salary
group t

Production Financial Advertising

departmen operational &promotion
t department department
Bases for Departmentalization:
Function departmentalization: Functional departmentalization group together those jobs
involving the same or similar activities.

Product departmentalization: product departmentalization grouping activities around

products or product groups.

Customer departmentalization: customer departmentalization grouping activities to

respond to and interact with specific customers.

Location departmentalization: location departmentalization groups job s on the basis of

defined geographic sites or areas.
Departmentalization of operation:

Partex Group’s operation

Product Functional Customer Location

Departmentalization Departmentalization Departmentalizatio Departmentalizatio

Particle Design Industria Dhaka

l sales (Gulshan,
Mirpur,Tangail
Moghbazar,
Veneer Financ Narsingdi,
Consum
er sales

Melamine Manufacturing Narayangong

faced chip
board

Marketing Mymenshing

Ply wood Individual Partnershi

customer p business Kishorgonj

PVC
Manikgonj

Doors &
furniture
Keranigon

Modhupur
Chain of Command:

Top Line Management: Top managers are responsible for making organization-
wide decisions and establishing the plans and goals that affect the entire organization.
These individuals typically have titles such as executive vice president, president,
managing director, chief operating officer, chief executive officer, or chairman of the
board.

Middle Line Management: Middle managers include all levels of management

between the first-line level and the top level of the organization. These managers
manage the work of first-line managers and may have titles such as department head,
senior manager, project leader, plant manager, or division manager.

First Line Management: First-line managers are the lowest level of

management and manage the work of non managerial individuals who are directly
involved with the production or creation of the organization's products. First-line
managers are often called supervisors, but may also be called sales manager, line
managers, office managers, or even foremen.

Partex Group of Bangladesh is a centralized company as most of the decision making

power are in the hands of the Chairman. In centralized process, the authority and the
power remain in the hand of the Chairman/ President/CEO.
The chain of command in decision making process:

CEO

Top line management

Managing Director

Director

General Manager

Senior manager (sales

Marketing) Mid line management

Senior manager (Marketing)

Manager (finance)

Territory manager

Territory officer
First line management

Sales officer
Chapter Four-
Leading:
Leadership means the use of non coercive influence to shape the group’s or
organization’s goals, to motivate behavior toward the achievement of those goals and to
help define group or organizational culture. There are some styles of leadership which
are shown below:

From the above diagram, we can see that there are five types of leadership style.
Among them, Partex Group follows Auto By virtue of outstanding leadership, foresight
and dedication; it has led to a major spell of diversity and fortification within a brief span
of time.

Organizational heroes are those who use their personal magic to lead others.
Company’s Chairman, MD, fellow workers are the heroes for an organization because
without them it is impossible to achieve success.
Motivational Environment:
When there is worthy competition, the competitive spirit of people (and organizations)
becomes energized. This is a powerful motivational tool, and one that every leader
should understand how to employ. The only caveat here is when the competition is so
overwhelmingly good that it seems unbeatable, this can discourage people. Or, when
competition is so weak or inept that winning against it is easy; there, people can
become complacent. In both cases the motivational value of competition is diminished,
and loses some of its motivational power. Pride is a motivational tool that works and
works and works. Pride works in developing any kind of “campaign,” whether it is sales,
marketing, new product development, operational improvement or simply getting the
best possible team together. The important point to remember is that motivation is all
about human behavior and Maslow’s hierarchy rules. Few people can move toward
Maslow’s ultimate behavioral result—self-actualization—when they are worried about
survival, shelter, sustenance, etc. This takes us right back to the start. To create an
environment in which people can become motivated, leaders can move through the
steps: first convert anxiety to fear; solve the imminent crisis. Then focus on competing,
and choose competitive targets wisely and well. Finally, appeal to pride of
accomplishment. Then the continued pride of achievement can sustain their motivation
Chapter Five:
Controlling:
Control is an issue every manager faces. Control is a process to regulate organizational
activities to make them consistent established plans, targets and standards. It provides
organizations with indication of how well they are performing in relation to their goals.It
also provides a mechanism for adjusting performance to keep organizations moving in
the right direction.

Types of Control:

There are two types of control. Such as:

 Areas of Control
 Levels of Control.

Areas of Control:

It is of four types. Such as:

Levels of Control:

Financial control:
Financial controls are controls over financial activity to ensure that the desired return on
investment will occur. There are several financial controls that are used to determine
how well the organization controls its financial transactions:

o Income Statement
• Balance Sheet
• Financial Audit
• Financial Ratio Analyses
o Liquidity Ratio
o Profitability Ratio
o Debt Ratio
o Operating Performance Ratio
o Cash Flow Indicator Ratio
o Investment Valuation Ratio
Budgetary Control:
It is the use of comprehensive system of budgeting to aid management in carrying out
its functions like planning, coordination and control. Budgets are typically for one year or
less. It may be expressed in financial terms, units of output or other quantifiable factors.

Types of Budget:
There are three types of budget:

 Financial budget: Financial budgets are financial plans that are structured to
detail projections on incomes and expenses on both a long-term and a short-term
basis.
 Operating budget: An operating budget is a combination of known expenses,
expected future costs, and forecasted income over the course of a year.
Operating budgets are completed in advance of the accounting period, which is
why they require estimated expenses and revenues.
 Nonmonetary budget: It is a planned budget for non financial terms. Such as,
labor budget, space budget and production budget.
Chapter Six:
Conclusion: It is impossible to have a clear-cut idea of a big company within a
short time. But according to my observation this company is suffering from a
tremendous problem in following areas, which are the main obstacle for the company
optimum growth:

 There is a clear gap between Production and Marketing.

 Company sales and marketing people have a package of their action plan.
 Company do not giving its effort in marketing research, market development,
product development, product positioning, un-trapped market, business plan,
marketing plan, product planning, and an effective advertising and promotional
planning.
 Company did much promotional campaign but never try to figure out the reason
for success and failure.
 Individual job responsibility should be very specific.
Company is in developing stage. Gradually it is trying to figure out its system fall and
week corner. In spite of many problems, it is the pioneer in furniture industry in our
country. Hope it will be a systemic and standard organization.

Recommendations:
1) Sales Service should be provided at all the Show-room. It will save time and
effort of the people.
2) Some product design of the company are very traditional.
3) Drop out slow moving product.
4) To increase the sales advertising on Print media, Electronic media should be
increase.
5) Dealer should be available in all district. Then I have to find out according to the
market potentiality for more than one dealer in the same market.
6) At present more training is needed about the salesmanship.
7) Market research for each brand has to be done for getting the clear picture for
product positioning against the competitor products and finding out furniture.
8) The budget will be required to upgrade as its targeted future.

Bibliography
Websites: www.partexgroup.com, www.wikipedia.com, www.partex.net,
www.bangla2000.com