Executive Summary:
Poultry farm plays a vital role in the agricultural sector of Bangladesh. Poultry production in Bangladesh is spread all over the country without much input. It is a low input-low output profitable system with little care and with almost no extra supplementary feeding. If invested effectively, then, this can be a very profitable venture. This business is very much research oriented and organized. Due to internationally used machineries, this business is now very modernized. BAY Agro Industries Ltd. has been in this business since 1998 and they have settled a trend for the young entrepreneurs. And also other farms in the industry have also proven them very profitable. Before venturing into this area BAY Agro Industries Ltd. extensively carried out research work on the prospect of poultry business in Bangladesh and also revenue that other poultry farms are making from the business. Bay Agro’s price and quality is its competitive advantage through which it was possible to be successful in this industry. To prove that the competitive advantage in agro industries depends on price and quality I conducted survey among the dealers of the Bay Agro based on constructive questionnaire. I have analyzed the data through Frequency, Graphical presentation, Crosstabs, Chi-square, ANOVA, Correlation and Regression analysis. I have found interesting results from the analysis of the data. 80% of the respondents have ranked Bay Agro as no. 1 based on both quality chicks and reasonable price. Among the respondents 75% of the respondents agreed that the pricing policy of the company is ‘reasonable’ on the other hand also 80% said there are at least ‘Good’ chance of getting incentive from this company; also 80% claimed that the company’s after sales service is at least ‘Good’. Finally there is at least ‘High’ chance that 85% of the dealers will continue their business with Bay Agro. So it is clear that price and quality are the tools through which Bay Agro achieved its competitive advantage. Though Bay Agro is doing well in these segments but still there is lots of room for improvements. There some dealers who are still not satisfied with the price and quality of the Bay Agro. So to be a market leader Bay Agro must have focus on these factors.
Origin of The Report:
Agro Industries plays a vital role in the agricultural sector of Bangladesh. Agro Firms is found all over the country without much input. It is a low input-low output profitable system with little care and with almost no extra supplementary.
I am doing my internship at BAY Agro Industries Ltd. As an intern of the company, my job is to provide different services in marketing and production division. In my internship report I will try to analyze the market of Agro industries in Bangladesh by studying on BAY Agro Industries Ltd.
Objective of the Report:The purpose of the report is to make a market analysis of Agro industries in Bangladesh in relation with BAY Agro Industries Ltd. The report is going to be prepared to get in-depth knowledge about how Agro industries in Bangladesh succeeded on their ventures with the example of BAY Agro Industries Ltd.
Scope of the Report:The scope of the report is to find out about the Agro industries in Bangladesh and how BAY Agro Industries Ltd is progressing. The target is to analyze the current market situation and Special focus will be on the revenue analysis.
Significance of the Study:The outcome of this report will help the Bay Agro to understand their competitive advantages along with weakness of their business. It will also reveal their performance from the perspective of their dealers and expectations of their dealers. This will help them to gain new dealers as well as build good relationship with their current dealers.
Poultry Industry Overview:Over the past thirty years poultry processing has changed from an industry of numerous small plants producing variety deboned poultry, traypacks, and further processed products. The innovations that drove structural change had diverse impacts on costs: new processed products raised production costs while new products technologies reduced production costs by increasing line speeds, improving yields and realizing scale economies.
Livestock is now considered as one of the important sectors for creating jobs and alleviation of poverty. The role of this sub-sector in earning foreign exchange through export of livestock products like leather, feather, wool, bone etc. is quite important. The contribution of this subs sector to GDP in FY 2006-07 accounts for 3.51 per cent and the growth rate of this sub-sector was about 5.98 per cent.[1]
Data from Ministry of Fisheries and Livestock reveal that the number of cattle and poultry population in 1991-92 were 4.19 crore and 11.05 crore respectively. In 2007-08, these numbers increased to 5.35 crore and 22.90 crore respectively. In 2008-09 this number increased to 6.44 crore and 23 crore respectively. Production of eggs (hen and duck) stood at 379 crore in 1999-00, in 2008-09, this figure increased to 596 crore.
In a bid to develop livestock resources, the government has set up a large number of livestock and poultry farms through implementation of ADP projects. The livestock and poultry farms set up at the self-initiative while making a substantial contribution to attracting huge investment. The present government in an attempt to strengthen the dairy sector distributed Tk. 2.5 crore among 4,775 registered private dairy farms as an incentive package in FY 2007-08. The provision of this incentive greatly inspired the farmers and as a result, the number of dairy farms has markedly increased.
Item | All Households | Under 0.5 acre | 0.5 to under 1.0 acre | 1.0 to under 1.5 acre | 1.5 to under 2.5 acre | Total under 2.5 acre | Medium holdings 2.5 to under 7.5 | Large holdings 7.5 and above acres |
Poultry | 73713161 | 10725159 | 9159597 | 8285477 | 12801511 | 40971744 | 24729209 | 8012208 |
Fowls(Chicken) | 61093468 | 9084599 | 7722214 | 6940218 | 10648591 | 34395622 | 20313578 | 6384268 |
Source: Bangladesh Statistical Year Book 2008.
Since the 1970s, global production, consumption, and trade of poultry meat have grown faster than that of any other meat. During the 1990s, when demand growth slowed for other meats, including fish, demand growth for poultry meat accelerated and poultry continued to lead the expansion of meat. Although demand for poultry meat was strong relative to demand for other meats in developed countries during the 1990s, the rapid global gains in poultry meat supply, demand, and trade were led by gains in developing countries.
Growth of Meat Consumption by Region
Expansion has been most rapid in the developing Asia region, including China, South Asia, and Southeast Asia, as well as in Latin America. The emergence of the poultry sectors in developing countries, such as Bangladesh, has the potential to affect global and U.S. markets for poultry products, feeds, and related inputs.
USA has huge demand for poultry products which can be captured through our low cost products. Being one of the low cost producers of poultry product in the world Bangladesh, until now, has failed to take advantage of it in its Balance of Payments. By exporting local poultry products Bangladesh could have exported and earned foreign currencies.
SWOT Analysis of AGRO-BASED Industry Infrastructure in Bangladesh: Strengths:
- Round the year availability of raw materials.
- Social acceptability of agro-processing as important area and support from the central government.
- Vast network of manufacturing facilities all over the country.
- Vast domestic market.
Weaknesses:
- High requirement of working capital
- Low availability of new reliable and better accuracy instruments and equipment.
- Inadequate automation with respect to information management.
- Remuneration less attractive for talent in comparison to contemporary disciplines.
- Inadequately developed linkages between R&D labs and industry.
Opportunities:
- Large crop and material base in the country due to agro-ecological variability offers vast potential for agro processing activities.
- Integration of developments in contemporary technologies such as electronics, material science, computer, bio-technology etc. offer vast scope for rapid improvement and progress.
- Opening of global markets may lead to export of our developed technologies and facilitate generation of additional income and employment opportunities.
Threats:
- Competition from global players
- Loss of trained manpower to other industries and other professions due to better working conditions prevailing there may lead to further shortage of manpower.
- Rapid developments in contemporary and requirements of the industry may lead to fast obsolescence.
BAY Agro Industries Ltd:From a modest beginning in 1998, it has grown into the largest producer of broiler and layer day-old chicks in Bangladesh. They are also the largest producer of poultry feed in Bangladesh. In Bangladesh, they are the franchisee of Cobb-Van tress of the United States of America for the Cobb 500 broiler, considered to be the best in the world. Hy-line, the oldest poultry breeding company of the world and Cargill, the American feed producer, are the other strategic partners of the BAY Agro Industries Ltd. Group.
BAY Agro Industries Ltd. now operates 2 grand parent farms, 3 parent growing farms, 8 parent production farms, 7 hatcheries and two pellet feed mills. Their present production capacity is 1.8 million day-old chicks per week. About 35% of all chicks sold in Bangladesh come from BAY Agro Industries Ltd. BAY Agro Industries Ltd. has begun exports to the Middle-East and Nepal, and is managing the operations of a broiler breeding farm in the Sultanate of Oman.
Vision:To be one of the best managed commercial organization in Bangladesh in terms of quality, technology, innovation, operational excellence and growth and produce day-old-chicks of the highest international standards.
Mission:
Our mission is to produce best quality day- old-chicks of the country, compatible with international standards.
Production:They mainly produced – 1. Chicks 2. Feed 3. Broilers
Producing Feed
Since starting trial production in January 2000, BAY Agro Industries Ltd.’ centrally located poultry feed mill in Gajaria, Munshiganj has become established as the leader amongst local producers. BAY Agro Industries Ltd.’ goal is to provide international quality feed at an affordable price.
In order to ensure feed quality, BAY Agro Industries Ltd. gets technical assistance for the running of the mill from Cargill, USA. Cargill is the world largest producer of animal feed and runs feed mills in 70 countries. All of the BAY Agro Industries Ltd.’ feed formulations are provided by Cargill, ensuring the international quality of the products.
With a total production capacity of 40 metric tons per hour, BAY Agro Industries Ltd.’ Gajaria plant is the largest in Bangladesh.
Four silos, each of 5,000 ton capacity, are now under construction. A jetty and equipment to unload vessels will be added soon.
Exports:BAY Agro Industries Ltd. is the first Bangladeshi company to start exporting parent stock chicks, hatching eggs and day old broiler chicks. They are exporting to Saudi Arabia, Oman and Nepal. They are now increasing their production in order to increase the export volumes substantially as the Cobb 500 breed is extremely popular in these markets. BAY Agro Industries Ltd. export high quality products at reasonable prices.
Bangladesh is completely free from highly pathogenic and low pathogenic avian influenza. It is completely safe to import chicks and hatching eggs from Bangladesh. Avian Influenza-free certificates from the department of the livestock service of the Government of Bangladesh can be provided with each export shipment.
The Industry Life Cycle:The industry life cycle model consists of-
(1) An embryonic industry environment
(2) A growth industry environment
(3) A shakeout environment
(4) A mature environment
(5) A declining industry environment
BAY Agro Industries Ltd. is in the Growth Stage of the Industry Life Cycle.
SWOT Analysis of BAY AGRO INDUSTRIES LTD:
- Accountable Corporate Governance:
Good Corporate Governance is an issue of vital importance to the Board and Management of BAY Agro Industries Ltd. Group. BAY Agro Industries Ltd. Group’s board has a formal schedule of matters especially reserved for its decision including corporate strategy, approval of budgets and balance sheet, annual financial results. The Board of Directors, as the apex level of authority, is responsible and accountable for the overall direction and is ultimately answerable to regulatory authorities and shareholders for the activities, strategies and performance of the company.
Experienced Senior Management:
The senior management of the company is responsible for promoting the highest level of business ethics and integrity. Their aim is to create and foster a culture throughout the company that emphasizes and demonstrates the importance of maintaining high business ethics and close relationship with customers.
Quality Customer service:
Customers are the focal point of all the company’s activities. BAY Agro Industries Ltd. Group is committed to its customers for excellent, innovative and quality products across all customer segments. The company provides a full range of quality products to small and medium size retailers.
Training and Development:The company has a personnel-training institute with good resources. They give regular training to the officer of both middle and lower levels. Again if there is any strategy or technology change, there will be special training program arranged based on individual needs.
Weaknesses:
BAY Agro Industries Ltd. does not promote their brand or products on a regular basis. They seem to be over confident over their company’s publicity. They some times see it as an extra expenditure. They also don’t do much electronic media advertising. This is a big weakness for BAY Agro Industries Ltd., which may prove to be very big mistake in the future. The company should concentrate more on its promotional activities.
Opportunities
- Using Good market image:
BAY Agro Industries Ltd. Group has quite a strong market image. Local people know BAY Agro Industries Ltd. Group as a center of trust and professional where local expertise use to serve. If they expand their business and utilize this strength as more diversified business opportunities, they can create stronger image in the country.
Expanding the business area:
BAY Agro Industries Ltd. could also boost the number of production facilities to take advantage of increase demand among the existing customer with better products and thus generate more net profit.
Government’s changing attitude towards Private Sector Development:
The government is favoring private sector investment, which is good for BAY Agro Industries Ltd., as they can now expand their business with the favoring rules and regulations of Government of Bangladesh. This kind of government support will lessen their problems. As BAY Agro Industries Ltd. is a local private manufacturer it holds more diversified opportunities to do business on their own interest. They always can expect feedback from government. The tax incentives are also high for Poultry industry in Bangladesh which creates a very favorable condition for conducting business in the country.
Threats:
Political and Legal Environment:
The political environment of Bangladesh is quite unstable and it affects the Industry from performing efficiently. In Bangladesh where the political environment is absolutely unpredictable the external forces constantly keep on changing. For instance, a sudden call of Hartal or strike might end up with the cancellation of the events. Thus, there is an enormous possibility of incurring a huge loss.
Economical Environment:
The immediate challenges for the economy will be a weaker external environment (the EU and US are Bangladesh’s biggest export destinations). This will take its toll on ready-made garment exports (which comprise around 75% of total exports). Although the economy will benefit from lower commodity (especially oil) prices, the government’s high borrowing costs to finance the budget deficit could limit the scope for a sharp fall in inflation.
Social Environment:
Bangladesh is a developing country. The national economy has been gaining momentum recently. The national unemployment rate has been hovering at a relatively low level for two years. On the divisional level, especially Dhaka and Chittagong continue to experience rapid expansion and prosperity. As these regions accept many newcomers from the rust belt and other areas, it has become more business focused. Business is booming in the grass root level. The annual growth rates of new small businesses are soaring. Many businesses continue to expand in the countryside.
Technological Environment:
Since internet connectivity reached Bangladesh in 1997, people in Bangladesh have been able to open their doors to the outside world more than before. Then companies within Bangladesh became ISPs, thus paving the way for companies with in Bangladesh to eventually have a web site of their own. This means greater market penetration for Bengali business people. A major proportion of Bangladesh is having access to the Internet. Business organizations are increasingly adapting to the use of Internet than other time consuming modes of communication.
Ratio Calculation: Imperative Financial Data
BAY Agro Industries Ltd. |
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| |
2009 | 2008 | 2007 | |
Current Assets | 526,027,389 | 359,557,262 | 169,645,946 |
Current Liabilities | 11,044,590 | 4,019,095 | 10,831,483 |
Inventory | 100,423,953 | 82,439,210 | 54,648,636 |
Cost of Goods Sold | 823,834,516 | 511,692,375 | 503,464,886 |
Accounts Receivable (Trade Debtors) | 2,606,196 | 7,234,236 | 6,186,282 |
Sales (Turnover) | 1,012,841,476 | 606,951,668 | 601,289,344 |
A/c Payable (Liabilities for Goods) | 3,177,587 | 2,899,345 | 9,464,222 |
Fixed Assets | 139,589,011 | 100,096,562 | 96,255,876 |
Total Assets | 708,990,386 | 502,927,810 | 310,675,808 |
Total Liabilities | 384,919,603 | 261,320,646 | 127,342,282 |
Gross Profit | 139,006,960 | 95,259,293 | 97,824,458 |
Earnings Available for Common Stockholders | 205,962,383 | 20,975,158 | 29,837,956 |
Number of Shares of Common Stock Outstanding | 731,084 | 331,084 | 331,084 |
Common Stock Equity | 73,108,400 | 33,108,400 | 33,108,400 |
Financial Ratios:
BAY Agro Industries Ltd. | |||
Liquidity Ratios | 2009 | 2008 | 2007 |
Current Ratio | 47.63 | 89.46 | 15.66 |
Quick Ratio | 38.54 | 68.95 | 10.62 |
Activity Ratios | |||
Inventory Turnover | 8.20 | 6.21 | 9.21 |
Average Age of Inventory | 43.88 | 58.00 | 39.08 |
Average Collection Period | 0.93 | 4.29 | 3.70 |
Average Payment Period | 1.47 | 9.95 | 5.51 |
Total Asset Turnover | 1.43 | 1.21 | 1.94 |
Debt Ratios | |||
Debt Ratio | 0.54 | 0.52 | 0.41 |
Profitability Ratios | |||
Gross Profit Margin | 13.72% | 15.69% | 16.27% |
Net Profit Margin | 20.34% | 3.46% | 4.96% |
Earnings Per Share | 281.72 | 63.35 | 90.12 |
Return on Total Assets | 29.05% | 4.17% | 9.60% |
Return on Common Equity | 281.72% | 63.35% | 90.12% |
Ratio AnalysisLiquidity Ratios
Current & Quick RatiosOver the last three years under consideration BAY Agro Industries Ltd. has been able to maintain a current ratio of less than 100 and a quick ratio of 70. Taking both the ratios under consideration suggests that BAY Agro Industries Ltd. maintains a very high level of inventory as its current assets thus bear substantial cost since there are certain fixed and variable costs associated with keeping inventory.
Unlike other industries, firms in the poultry industry should not maintain a very high level of inventory since stored inventory in this industry are highly perishable within a short span of time. Thus BAY Agro Industries Ltd. is performing poorly in terms of managing inventory as part of its current assets. Combined analysis suggests that BAY Agro Industries Ltd. has full capability to meet its all short-term obligations since current asset is much higher compared to current liabilities and it maintains a very high level of inventory as part of its total current assets.
Activity Ratios
Inventory TurnoverBAY Agro Industries Ltd.’ inventory turnover (8.20) shows very high liquidity of inventory. Its average age of inventory in 2009 was 43.88 days, which is very good to perform well and gain superior profitability in the poultry industry. This finding compliments the findings above in the current and quick ratio.
Total asset turnover has hovered around 1.94 to 1.43 times for BAY Agro Industries Ltd. over the last three years. This suggests that the company turns over its assets more than 1 time a year.
Debt RatiosThe graph of debt ratio over time for BAY Agro Industries Ltd. suggests that in the last year of 2009 it had increased its debt or in other words increased total liabilities as a percentage of total assets. BAY Agro Industries Ltd. has maintained 40 to 55 per cent debt ratio over the entire period of consideration. The significant hike of this debt ratio could be due to a change in its strategy. This surely increases risk of the shareholders in case of default of the company but this move also increases the profitability of the company as well by increasing financial leverage of the company.
As can be seen from above diagrams BAY Agro Industries Ltd.’ ROA has increased to 29 per cent from 9 per cent in the last 3 years. Going a step further reveals the reason, which is, as has been found earlier, the sudden upsurge of net profit margin from 5 per cent to 20 per cent. These have caused the increase in ROA of BAY Agro Industries Ltd.
HYPOTHESIS:H: 1= quality and price have a significant relationship in gaining competitive advantage in agro industries.
H: 0= quality and price have no relationship in gaining competitive advantage in agro industries.
Hypothesis for Pearson Chi-Square: H0 (Null hypothesis): Variable “The pricing policy of the Bay Agro” and “Ranking based on best packing, grading & counting standards” are independent.
H1 (Alternative hypothesis): Variable “The pricing policy of the Bay Agro” and “Ranking based on best packing, grading & counting standards” are dependent.
H0 (Null hypothesis): Variable “Rate of mortalities at farms under normal circumstances” and “Protection level of the Bay Agro against the “Bird flu” virus” are independent.
H1 (Alternative hypothesis): Variable “Rate of mortalities at farms under normal circumstances” and “Protection level of the Bay Agro against the “Bird flu” virus” are dependent.
H0 (Null hypothesis): Variable “Facing any problem in transportation” and are “The cost / responsibility for delivery” independent.
H1 (Alternative hypothesis): Variable “Facing any problem in transportation” and are “The cost / responsibility for delivery” dependent.
H0 (Null hypothesis): Variable “After sale service’ quality” and are “Probability of continuing business with Bay Agro” independent.
H1 (Alternative hypothesis): Variable “After sale service’ quality” and are “Probability of continuing business with Bay Agro” dependent.
Hypothesis for ANOVA: H0 (Null hypothesis): Model is not adequate.
H1 (Alternative hypothesis): Model is adequate.
Hypothesis for Coefficients:H0 (Null hypothesis): βi = 0 [This independent variable is not a significant predictor of the dependent.]
H1 (Alternative hypothesis): βi ≠ 0 [This independent variable is a significant predictor of the dependent.]
Hypothesis for Correlations: H0 (Null hypothesis): ρ = 0 [There is NO actual correlation]
H1 (Alternative hypothesis): ρ ≠ 0 [There is a correlation]
METHODOLOGY:
SAMPLE INFORMATION:
For the organization part, much information will be collected from different documents of BAY Agro Industries Ltd. At the same time the available data about Agro industries in Bangladesh will be portrayed in the report. All the information incorporated in this report will be collected both from the primary sources and as well as from the secondary sources.
PRIMARY SOURCE OF DATA:Primary data is the data which is collected directly from the practical field. The method that will be used to collect the primary data as follows:
Primary sources
- Data collected by the questionnaire.
- Discussions with the officials of BAY Agro Industries Ltd, who were involved with the company for a long time.
- Face to face conversation with other reputed Agro Farms in the industry.
SECONDARY SOURCE OF DATA:The secondary sources of data will be collected from the research papers of Agro Industries. To clarify different conceptual matters, Internet and different articles published in the journal & magazines will be used.
Secondary Sources:
- Research papers relating poultry production.
- Other Published documents, Internet. Journals etc.
Data Analysis:
Data gathered from the survey will be analyzed through Excel and SPSS software. I will use- Frequency, Graphical presentation, Crosstabs, Chi-square, ANOVA, Correlation and Regression analysis.
Data Coding:Coding the data makes data entry much easier and accurate. Data is coded in the variable view, where a number can be assigned to each response. For example, there is a question – “Is there any shed/ room for further expansion?” where ‘1’ can be assigned for a ‘Yes’ response and ‘2’ for a ‘No’ response. When data has been fully coded, only the responses’ code is entered in order to get the results.
Data Entry:In order to use SPSS for statistical analysis, first I need to enter the data into the SPSS software. Without proper data entry will not get accurate results. SPSS has two different views to enter data. They are, data view and variable view. The data view is used for entering coded data, whereas as the variable view is used to describe and code the variables.
Dependent & Independent Variables:Dependent Variable:
Satisfaction of the dealers
Independent Variables:
Pricing policy
Incentives
After sales service
Protection against Virus
Technical support
Margin error:The sample size includes only 20 respondents for this reason I will use 90% confidence level. Any margin of error greater than 10% will not be accepted in this report.
Limitations: As the survey is limited in area, it will not represent the entire population.
Time and cost are the key constraints of the study. Due to lack of time and increased cost we could not raise our total sample size. Therefore lower sample size means more estimation error.
It couldn’t be absolutely sure whether the answers given by the respondents were genuine or vague. They might have filled up the questionnaire without getting into the subject matter properly, which created response bias.
The unavailability of some vital data due to the confidentiality of the company.
Data Analysis:Frequency Analysis:
Capacity of poultry firm:
Table 1: Frequency Distribution of- Capacity of poultry firm
What is your Capacity of poultry firm? | |||||
Frequency | Percent | Valid Percent | Cumulative Percent | ||
Valid | 4000 | 2 | 10.0 | 10.0 | 10.0 |
5000 | 3 | 15.0 | 15.0 | 25.0 | |
6000 | 3 | 15.0 | 15.0 | 40.0 | |
8000 | 3 | 15.0 | 15.0 | 55.0 | |
10000 | 2 | 10.0 | 10.0 | 65.0 | |
12000 | 3 | 15.0 | 15.0 | 80.0 | |
15000 | 2 | 10.0 | 10.0 | 90.0 | |
16000 | 1 | 5.0 | 5.0 | 95.0 | |
20000 | 1 | 5.0 | 5.0 | 100.0 | |
Total | 20 | 100.0 | 100.0 |
There are different amount of capacity regarding poultry firm. The range is from four thousand to twenty thousand.
Table 2: Frequency Distribution of- Shed/ room for further expansion
Is there any shed/ room for further expansion? | |||||
Frequency | Percent | Valid Percent | Cumulative Percent | ||
Valid | Yes | 17 | 85.0 | 85.0 | 85.0 |
No | 3 | 15.0 | 15.0 | 100.0 | |
Total | 20 | 100.0 | 100.0 |
In terms of further expansion eighty five percent people think there is an opportunity for expanding whereas fifteen percent people find no possibility for further expansion. As a result there is huge opportunity for expanding.
Satisfaction with this business:
Are you happy with this business? | |||||
Frequency | Percent | Valid Percent | Cumulative Percent | ||
Valid | Very Happy | 2 | 10.0 | 10.0 | 10.0 |
Happy | 12 | 60.0 | 60.0 | 70.0 | |
Neutral | 4 | 20.0 | 20.0 | 90.0 | |
Unhappy | 2 | 10.0 | 10.0 | 100.0 | |
Total | 20 | 100.0 | 100.0 |
Most of the people are happy with the business. Ten percent people are very happy with the business, twenty percent people find it neutral and only ten percent people are unhappy. At the same time sixty percent people are happy. So, we can say the satisfaction level is above average.
Rank based on maximum shareholder in the area:
Table 4: Frequency Distribution of- Rank based on maximum shareholder in the area
Which company has the maximum share now in your area? (Ranking of Bay Agro) | |||||
Frequency | Percent | Valid Percent | Cumulative Percent | ||
Valid | Rank 1 | 11 | 55.0 | 55.0 | 55.0 |
Rank 2 | 7 | 35.0 | 35.0 | 90.0 | |
Rank 3 | 2 | 10.0 | 10.0 | 100.0 | |
Total | 20 | 100.0 | 100.0 |
Fifty five percent people think Bay Agro has the maximum share in their area, Thirty five percent people find them as second best and Ten percent people rank them as the third best. So, we can say Bay agro captured healthy percentage of share of the market.
Ranking based on best chicken:
Table 5: Frequency Distribution of- Ranking based on best chicken
Which company’s chicks you like the most? (Ranking of Bay Agro) | |||||
Frequency | Percent | Valid Percent | Cumulative Percent | ||
Valid | Rank 1 | 16 | 80.0 | 80.0 | 80.0 |
Rank 2 | 4 | 20.0 | 20.0 | 100.0 | |
Total | 20 | 100.0 | 100.0 |
e market whereas only twenty percent people find them as second best, So we can say the quality of Bay agro is excellent.
Ranking based on best packing, grading & counting standards:
Table 6: Frequency Distribution of- Ranking based on best packing, grading & counting standards
Which company maintains the best packing, grading & counting standards? (Ranking of Bay Agro) | |||||
Frequency | Percent | Valid Percent | Cumulative Percent | ||
Valid | Rank 1 | 15 | 75.0 | 75.0 | 75.0 |
Rank 2 | 5 | 25.0 | 25.0 | 100.0 | |
Total | 20 | 100.0 | 100.0 |
Seventy five percent people ranked Bay agro as the best in the market regarding quality control only twenty five percent people find them as second best, so we can say Bay agro maintains the best packing, grading & counting standards.Ranking based on highest weight gain & FCR:
Table 7: Frequency Distribution of- Ranking based on highest weight gain & FCR
Which company’s broilers attain the highest weight gain & FCR? (Ranking of Bay Agro) | |||||
Frequency | Percent | Valid Percent | Cumulative Percent | ||
Valid | Rank 1 | 13 | 65.0 | 65.0 | 65.0 |
Rank 2 | 6 | 30.0 | 30.0 | 95.0 | |
Rank 3 | 1 | 5.0 | 5.0 | 100.0 | |
Total | 20 | 100.0 | 100.0 |
Sixty five percent people think Bay agro broilers attain the highest weight gain & FCR. Thirty percent find them as second best and only five percent ranked them as third. So we can say Bay agro maintains very high standard. Ranking based on popularity in the area:
Table 8: Frequency Distribution of- Ranking based on popularity in the area
Which company’s chicks is the most popular in your area? (Ranking of Bay Agro) | |||||
Frequency | Percent | Valid Percent | Cumulative Percent | ||
Valid | Rank 1 | 12 | 60.0 | 60.0 | 60.0 |
Rank 2 | 7 | 35.0 | 35.0 | 95.0 | |
Rank 3 | 1 | 5.0 | 5.0 | 100.0 | |
Total | 20 | 100.0 | 100.0 |
Sixty percent ranked Bay agro as the most popular chicks provider of the market. Thirty five percent ranked it as second best and only five percent ranked it as third best. So, we can say Bay agro is very popular with its product the satisfaction level of customer is very high.
Ranking based on reasonable pricing:
Table 9: Frequency Distribution of- Ranking based on reasonable pricing
Which company’s chicks prices are most reasonable? (Ranking of Bay Agro) | |||||
Frequency | Percent | Valid Percent | Cumulative Percent | ||
Valid | Excellent | 16 | 80.0 | 80.0 | 80.0 |
Good | 4 | 20.0 | 20.0 | 100.0 | |
Total | 20 | 100.0 | 100.0 |
Eighty percent people define pricing strategy of Bay agro as excellent and twenty percent as good. As a result we can say the pricing strategy of Bay Agro is very reasonable.Ranking based on regularity of supply:
Table 10: Frequency Distribution of- Ranking based on regularity of supply
Which company’s chicks supplies are regular? (Ranking of Bay Agro) | |||||
Frequency | Percent | Valid Percent | Cumulative Percent | ||
Valid | Excellent | 14 | 70.0 | 70.0 | 70.0 |
Good | 6 | 30.0 | 30.0 | 100.0 | |
Total | 20 | 100.0 | 100.0 |
Seventy percent people defines the regularity of supplies of Bay agro as excellent thirty percent defines them as good, So we can say Bay agro maintain excellent supply chain management.Protection level of the Bay Agro against the “Bird flu” virus:
Table 11: Frequency Distribution of- Protection level of the Bay Agro against the “Bird flu” virus
What is the protection level of the Bay Agro against the “Bird flu” virus? | |||||
Frequency | Percent | Valid Percent | Cumulative Percent | ||
Valid | Excellent | 3 | 15.0 | 15.0 | 15.0 |
Good | 13 | 65.0 | 65.0 | 80.0 | |
Standard | 4 | 20.0 | 20.0 | 100.0 | |
Total | 20 | 100.0 | 100.0 |
Sixty five percent defines the protection level of Bay agro against viruses as good, fifteen percent find it excellent and twenty percent people think it maintains a standard protection level. So we can say the standard level of Bay agro in terms of virus protection is great.
Rate of mortalities at farms under normal circumstances:
Table 12: Frequency Distribution of- Rate of mortalities at farms under normal circumstances
What are the mortalities at farms under normal circumstances? | |||||
Frequency | Percent | Valid Percent | Cumulative Percent | ||
Valid | Good | 15 | 75.0 | 75.0 | 75.0 |
Standard | 5 | 25.0 | 25.0 | 100.0 | |
Total | 20 | 100.0 | 100.0 |
Seventy five percent people think moralities at firms is good and twenty five people find it standard. This means chicks provided by the Bay Agro have good life span.
Technical support provided by the Bay Agro:
Table 13: Frequency Distribution of- Technical support provided by the Bay Agro
How is the technical support provided by the Bay Agro? | |||||
Frequency | Percent | Valid Percent | Cumulative Percent | ||
Valid | Excellent | 1 | 5.0 | 5.0 | 5.0 |
Good | 12 | 60.0 | 60.0 | 65.0 | |
Standard | 6 | 30.0 | 30.0 | 95.0 | |
Below Standard | 1 | 5.0 | 5.0 | 100.0 | |
Total | 20 | 100.0 | 100.0 |
Sixty percent people think technical support provided by the company is good. Five percent think it’s excellent thirty percent find it standard and five percent think it’s below standard. So we can say technical support provided by the company is quiet good.
Satisfaction level with Bay Agro:
Table 14: Frequency Distribution of- Satisfaction level with Bay Agro
What is your satisfaction level with Bay Agro? | |||||
Frequency | Percent | Valid Percent | Cumulative Percent | ||
Valid | Excellent | 3 | 15.0 | 15.0 | 15.0 |
Good | 15 | 75.0 | 75.0 | 90.0 | |
Standard | 2 | 10.0 | 10.0 | 100.0 | |
Total | 20 | 100.0 | 100.0 |
Seventy five percent peoples satisfaction level with Bay agro is good ,fifteen percent finds its excellent and ten percent finds it standard, So we can say the satisfaction level with Bay agro is quiet high.Opportunity to get Sales/performance incentive:
Table 15: Frequency Distribution of- Opportunity to get Sales/performance incentive
How much opportunity to get Sales/performance incentive from Bay Agro? | |||||
Frequency | Percent | Valid Percent | Cumulative Percent | ||
Valid | Excellent | 1 | 5.0 | 5.0 | 5.0 |
Good | 15 | 75.0 | 75.0 | 80.0 | |
Standard | 4 | 20.0 | 20.0 | 100.0 | |
Total | 20 | 100.0 | 100.0 |
Seventy five percent people think the opportunity to get Sales/performance incentive from the Bay agro is good, five percent think it is excellent and twenty percent finds it standard. So opportunity to get Sales/performance incentive from Bay agro is much appreciated.
After sale service’ quality:
Table 16: Frequency Distribution of- After sale service’ quality
How is their “after sale service’’ quality? | |||||
Frequency | Percent | Valid Percent | Cumulative Percent | ||
Valid | Excellent | 1 | 5.0 | 5.0 | 5.0 |
Good | 15 | 75.0 | 75.0 | 80.0 | |
Standard | 3 | 15.0 | 15.0 | 95.0 | |
Below Standard | 1 | 5.0 | 5.0 | 100.0 | |
Total | 20 | 100.0 | 100.0 |
Seventy five percent people think the after sale service of Bay agro is good; five percent people find it excellent. Five percent finds it‘s below standard and fifteen percent finds is standard. So the after sale service of Bay agro is satisfactory.
Facing any problem in transportation:
Table 17: Frequency Distribution of- Facing any problem in transportation
Do you face any problem in transportation of chicks? | |||||
Frequency | Percent | Valid Percent | Cumulative Percent | ||
Valid | Rarely | 13 | 65.0 | 65.0 | 65.0 |
Neutral | 5 | 25.0 | 25.0 | 90.0 | |
Often | 2 | 10.0 | 10.0 | 100.0 | |
Total | 20 | 100.0 | 100.0 |
Sixty five percent people rarely face any problem in transportation of chicks although ten percent people often finds problems in it. As a result there is room for bay agro to improve the transportation system.
The cost/responsibility for delivery:
Table 18: Frequency Distribution of- The cost/responsibility for delivery
Who bears the cost/responsibility for delivery of chicks? | |||||
Frequency | Percent | Valid Percent | Cumulative Percent | ||
Valid | Own | 2 | 10.0 | 10.0 | 10.0 |
Supplier | 18 | 90.0 | 90.0 | 100.0 | |
Total | 20 | 100.0 | 100.0 |
Ninety percent time supplier bears the cost of delivery of chicks only ten percent time the dealers had to bear the cost. As a result the service of Bay agro is much appreciated.
The pricing policy of the Bay Agro:
Table 19: Frequency Distribution of- The pricing policy of the Bay Agro
Compare to others how is the pricing policy of the Bay Agro? | |||||
Frequency | Percent | Valid Percent | Cumulative Percent | ||
Valid | Very Reasonable | 1 | 5.0 | 5.0 | 5.0 |
Reasonable | 15 | 75.0 | 75.0 | 80.0 | |
Same | 4 | 20.0 | 20.0 | 100.0 | |
Total | 20 | 100.0 | 100.0 |
In comparison of the pricing policy seventy five percent people finds the pricing policy of Bay agro reasonable five percent find it very reasonable and five percent think it is as same as others. So the satisfaction level regarding the pricing policy of Bay agro is very high.
Probability of continuing business with Bay Agro:
Table 20: Frequency Distribution of- Probability of continuing business with Bay Agro
What is the probability that you will continue your business with Bay Agro? | |||||
Frequency | Percent | Valid Percent | Cumulative Percent | ||
Valid | Very High | 5 | 25.0 | 25.0 | 25.0 |
High | 12 | 60.0 | 60.0 | 85.0 | |
Neutral | 3 | 15.0 | 15.0 | 100.0 | |
Total | 20 | 100.0 | 100.0 |
The probability to continue business with Bay Agro is high for sixty percent, twenty five percent finds it very high and fifteen percent is neutral. So the service of Bay agro limited is very much appreciated
Cross Tabulation & Pearson Chi-Square:
Now to test the validity of our hypothesis I have compared 4 pairs of nominal variable through cross tabulation. Here I will use Pearson Chi-Square for the test of Independence. In the Chi-Square test of Independence, the frequency of one nominal variable is compared with different values of the second nominal variable. The five pairs that will be tested are given below –
Pair 1:
The pricing policy of the Bay Agro
Ranking based on best packing, grading & counting standards
Pair 2:
Rate of mortalities at farms under normal circumstances
Protection level of the Bay Agro against the “Bird flu” virus
Pair 3:
Facing any problem in transportation
The cost/responsibility for delivery
Pair 4:
After sale service’ quality
Probability of continuing business with Bay Agro
Pair 1:
The pricing policy of the Bay Agro
Ranking based on best packing, grading & counting standards
Table 21: Joint distribution of “The pricing policy of the Bay Agro” by “Ranking based on best packing, grading & counting standards”
Compare to others how is the pricing policy of the Bay Agro? * Which company maintains the best packing, grading & counting standards? Crosstabulation | ||||
Count | ||||
Which company maintains the best packing, grading & counting standards? | Total | |||
Rank 1 | Rank 2 | |||
Compare to others how is the pricing policy of the Bay Agro? | Very Reasonable | 1 | 0 | 1 |
Reasonable | 14 | 1 | 15 | |
Same | 0 | 4 | 4 | |
Total | 15 | 5 | 20 |
From the cross tabulation above we can see that among 20 dealers 15 claimed that Bay Agro’s pricing policy is “Reasonable” and from them 14 dealers ranked Bay Agro as no. 1 based on the packing, grading & counting standards. Only 5 respondents ranked it no. 2. So it is evident that Bay agro not only providing reasonable price but also maintaining high quality for their products. This gave them a competitive advantage over others.
Chi-Square Test:
H0 (Null hypothesis): Variable “The pricing policy of the Bay Agro” and “Ranking based on best packing, grading & counting standards” are independent.
H1 (Alternative hypothesis): Variable “The pricing policy of the Bay Agro” and “Ranking based on best packing, grading & counting standards” are dependent.
Table 22: Chi-Square Tests of Cross-tabulation 1
Chi-Square Tests | |||
Value | df | Asymp. Sig. (2-sided) | |
Pearson Chi-Square | 15.022a | 2 | .001 |
Likelihood Ratio | 15.146 | 2 | .001 |
Linear-by-Linear Association | 11.762 | 1 | .001 |
N of Valid Cases | 20 | ||
a. 5 cells (83.3%) have expected count less than 5. The minimum expected count is .25. |
It is evident from the Chi-Square test that the P-value for this hypothesis test is .001 which is less than .10 (P- value). Hence we can reject the null hypothesis in favor of the alternative hypothesis which is – Variable “The pricing policy of the Bay Agro” and “Ranking based on best packing, grading & counting standards” are dependent.
Pair 2:
Rate of mortalities at farms under normal circumstances
Protection level of the Bay Agro against the “Bird flu” virus
Table 23: Joint distribution of “Rate of mortalities at farms under normal circumstances” by “Protection level of the Bay Agro against the Bird flu virus”
What are the mortalities at farms under normal circumstances? * What is the protection level of the Bay Agro against the “Bird flu” virus? Crosstabulation | |||||
Count | |||||
What is the protection level of the Bay Agro against the “Bird flu” virus? | Total | ||||
Excellent | Good | Standard | |||
What are the mortalities at farms under normal circumstances? | Good | 3 | 12 | 0 | 15 |
Standard | 0 | 1 | 4 | 5 | |
Total | 3 | 13 | 4 | 20 |
Above cross tabulation shows that among the 20 dealers 15 claimed that Bay Agro provide sat least “Good” protection against virus and on the other hand all of those 15 dealers said that the mortalities rate of the chicks are also good. There are no respondents who claimed Bay Agro has sub standard protection against virus and also there was no one having sub standard mortality rate. So it can be said that Bay Agro is maintaining good quality for their products.
Table 24: Chi-Square Tests of Cross-tabulation 2
Chi-Square Tests | |||
Value | df | Asymp. Sig. (2-sided) | |
Pearson Chi-Square | 15.077a | 2 | .001 |
Likelihood Ratio | 15.442 | 2 | .000 |
Linear-by-Linear Association | 10.252 | 1 | .001 |
N of Valid Cases | 20 | ||
a. 5 cells (83.3%) have expected count less than 5. The minimum expected count is .75. |
It is evident from the Chi-Square test that the P-value for this hypothesis test is .001 which is less than .10 (P- value). Hence we can reject the null hypothesis in favor of the alternative hypothesis which is – Variable “Rate of mortalities at farms under normal circumstances” and “Protection level of the Bay Agro against the “Bird flu” virus” are dependent.
Pair 3: Facing any problem in transportation
The cost/responsibility for delivery
Table 25: Joint distribution of “Facing any problem in transportation” by “The cost/responsibility for delivery”
Who bears the cost/responsibility for delivery of chicks? * Do you face any problem in transportation of chicks? Crosstabulation | |||||
Count | |||||
Do you face any problem in transportation of chicks? | Total | ||||
Rarely | Neutral | Often | |||
Who bears the cost/responsibility for delivery of chicks? | Own | 0 | 0 | 2 | 2 |
Supplier | 13 | 5 | 0 | 18 | |
Total | 13 | 5 | 2 | 20 |
We can see from the above cross tabulation that bay Agro provide transportation for 18 dealers and among them 13 claimed they rarely face transportation problem & 5 were neutral but no one claimed to have problem. But 2 dealers who use their won transportation system said they often face transportation problem. It is evident that those who take transportation from Bay Agro do not face problem which means Bay Agro is providing quality service to their dealers.
Chi-Square Test:H0 (Null hypothesis): Variable “Facing any problem in transportation” and are “The cost / responsibility for delivery” independent.
H1 (Alternative hypothesis): Variable “Facing any problem in transportation” and are “The cost / responsibility for delivery” dependent.
Table 26: Chi-Square Tests of Cross-tabulation 3
Chi-Square Tests | |||
Value | df | Asymp. Sig. (2-sided) | |
Pearson Chi-Square | 20.000a | 2 | .000 |
Likelihood Ratio | 13.003 | 2 | .002 |
Linear-by-Linear Association | 11.334 | 1 | .001 |
N of Valid Cases | 20 | ||
a. 5 cells (83.3%) have expected count less than 5. The minimum expected count is .20. |
It is evident from the Chi-Square test that the P-value for this hypothesis test is .001 which is less than .10 (P- value). Hence we can reject the null hypothesis in favor of the alternative hypothesis which is – Variable “Facing any problem in transportation” and are “The
cost/responsibility for delivery” dependent.
Pair 4:
After sale service’ quality
Probability of continuing business with Bay Agro
Table 27: Joint distribution of “After sale service’ quality” by “Probability of continuing business with Bay Agro”
How is their “after sale service’’ quality? * What is the probability that you will continue your business with Bay Agro? Crosstabulation | |||||
Count | |||||
What is the probability that you will continue your business with Bay Agro? | Total | ||||
Very High | High | Neutral | |||
How is their “after sale service’’ quality? | Excellent | 1 | 0 | 0 | 1 |
Good | 4 | 11 | 0 | 15 | |
Standard | 0 | 1 | 2 | 3 | |
Below Standard | 0 | 0 | 1 | 1 | |
Total | 5 | 12 | 3 | 20 |
The above cross tabulation shows that among 20 dealers 15 said that Bay Agro’s after sales service is ‘Good’ and all these 15 dealers claimed they have at least ‘High’ probability to continue business with Bay Agro. Though 2 respondents said the after sales service is standard and 1 said below standard, but even then none said their probability is low for continuous business with Bay Agro. So we can say that after sales service is one of the Bay Agro’s competitive advantage which boost the chances of future business success.
Chi-Square Test:H0 (Null hypothesis): Variable “After sale service’ quality” and are “Probability of continuing business with Bay Agro” independent.
H1 (Alternative hypothesis): Variable “After sale service’ quality” and are “Probability of continuing business with Bay Agro” dependent.
Table 28: Chi-Square Tests of Cross-tabulation 4
Chi-Square Tests | |||
Value | df | Asymp. Sig. (2-sided) | |
Pearson Chi-Square | 17.822a | 6 | .007 |
Likelihood Ratio | 16.289 | 6 | .012 |
Linear-by-Linear Association | 9.865 | 1 | .002 |
N of Valid Cases | 20 | ||
a. 11 cells (91.7%) have expected count less than 5. The minimum expected count is .15. |
It is evident from the Chi-Square test that the P-value for this hypothesis test is .007 which is less than .10 (P- value). Hence we can reject the null hypothesis in favor of the alternative hypothesis which is – Variable “After sale service’ quality” and are “Probability of continuing business with Bay Agro” dependent.
Correlation:H0 (Null hypothesis): ρ = 0 [There is NO actual correlation]
H1 (Alternative hypothesis): ρ ≠ 0 [There is a correlation]
Table 29: Correlations of independent variables with dependent variable
Correlations | ||
|
| What is your satisfaction level with Bay Agro? |
What is the protection level of the Bay Agro against the “Bird flu” virus? | Pearson Correlation | .861** |
Sig. (2-tailed) | .000 | |
How is the technical support provided by the company? | Pearson Correlation | .515* |
Sig. (2-tailed) | .020 | |
How much opportunity to get Sales/performance incentive from Bay Agro? | Pearson Correlation | .664** |
Sig. (2-tailed) | .001 | |
How is their “after sale service’’ quality? | Pearson Correlation | .704** |
Sig. (2-tailed) | .001 | |
Compare to others how is the pricing policy of the Bay Agro? | Pearson Correlation | .664** |
Sig. (2-tailed) | .001 |
Protection level of the Bay Agro against the “Bird flu” virus:
Here the P-Value is .000 which is less than P-value .10 and the Pearson Correlation is .861. So we can reject the null and we can state that – “There is a correlation” where the correlation is positive.
Technical support provided by the Bay Agro:
Here the P-Value is .020 which is less than P-value .10 and the Pearson Correlation is .515. So we can reject the null and we can state that – “There is a correlation” where the correlation is positive.
Opportunity to get Sales/performance incentive from Bay Agro:
Here the P-Value is .001 which is less than P-value .10 and the Pearson Correlation is .664. So we can reject the null and we can state that – “There is a correlation” where the correlation is positive.
After sale service quality of Bay Agro:
Here the P-Value is .001 which is less than P-value .10 and the Pearson Correlation is .704. So we can reject the null and we can state that – “There is a correlation” where the correlation is positive.
Pricing policy of the Bay Agro:
Here the P-Value is .001 which is less than P-value .10 and the Pearson Correlation is .664. So we can reject the null and we can state that – “There is a correlation” where the correlation is positive.
From the above correlation it is evident that dealers’ satisfaction with Bay Agro is positively correlated with the factors of price and quality of the Bay Agro. So we can say that in agro industry price and quality is the most important factors as a competitive advantage.
Regression Analysis:From the cross tabulation and Chi-Square Test of Independence I have managed to hold up my main hypothesis. Now I will run regression analysis to find out relationship with the dependent variable and independent variable.
Dependent Variable:
Satisfaction of the dealers
Independent Variables:
Pricing policy
Incentives
After sales service
Protection against Virus
Technical support
Model Summary:
Table 30: Model Summary
Model Summary | ||||
Model | R | R Square | Adjusted R Square | Std. Error of the Estimate |
1 | .925a | .856 | .804 | .226 |
a. Predictors: (Constant), Compare to others how is the pricing policy of the Bay Agro?, How is the technical support provided by the companies? , How much opportunity to get Sales/performance incentive from the suppliers?, What is the protection level of the Bay Agro against the “Bird flu” virus? , How is their “after sale service’’ quality? |
The R-squared of the regression is the fraction of the variation in dependent variable that is predicted by independent variables. This is an overall measure of the strength of association and does not reflect the extent to which any particular independent variable is associated with the dependent variable. The ‘Adjusted R Square’ is an adjustment of the R-squared that penalizes the addition of extraneous predictors to the model. Here the value of our Adjusted R2 is 0.804, which means that 80.4 percent of the total variance in dependent variable has been ‘explained’.
ANOVA:H0 (Null hypothesis): Model is not adequate.
H1 (Alternative hypothesis): Model is adequate.Table 31: ANOVA
ANOVAb | ||||||
Model | Sum of Squares | df | Mean Square | F | Sig. | |
1 | Regression | 4.236 | 5 | .847 | 16.613 | .000a |
Residual | .714 | 14 | .051 | |||
Total | 4.950 | 19 | ||||
a. Predictors: (Constant), Compare to others how is the pricing policy of the Bay Agro?, How is the technical support provided by the companies? , How much opportunity to get Sales/performance incentive from the suppliers?, What is the protection level of the Bay Agro against the “Bird flu” virus? , How is their “after sale service’’ quality? | ||||||
b. Dependent Variable: What is your satisfaction level with Bay Agro? |
The F-test tells us about the levels of significance of at least one of the variables. Here P-Value is .000 which is significantly lower than .10. Hence we can reject the null hypothesis in favor of the alternative hypothesis which is – “Model is adequate.”
Coefficients:
H0 (Null hypothesis): βi = 0 [This independent variable is not a significant predictor of the dependent.]
H1 (Alternative hypothesis): βi ≠ 0 [This independent variable is a significant predictor of the dependent.]
Table 32: Coefficients of independent variables with dependent variable
Coefficientsa | ||||||
Model | Unstandardized Coefficients | Standardized Coefficients | t | Sig. | ||
B | Std. Error | Beta | ||||
1 | (Constant) | .796 | .283 | 2.808 | .014 | |
What is the protection level of the Bay Agro against the “Bird flu” virus? | .954 | .171 | 1.131 | 5.575 | .000 | |
How is the technical support provided by the companies? | -.127 | .117 | -.167 | -1.092 | .293 | |
How much opportunity to get Sales/performance incentive from the suppliers? | .353 | .177 | .339 | 1.999 | .065 | |
How is their “after sale service’’ quality? | .594 | .285 | .716 | 2.083 | .056 | |
Compare to others how is the pricing policy of the Bay Agro? | -1.195 | .385 | -1.145 | -3.106 | .008 | |
a. Dependent Variable: What is your satisfaction level with Bay Agro? |
Model:
Y = A+β1X1+ β2X2+ β3X3+ β4X4
Protection level of the Bay Agro against the “Bird flu” virus:The relationship is significant as the P-Value is less than .10 which is .000. So we can reject the null and we can state that – “This independent variable is a significant predictor of the dependent.”
Technical support provided by the Bay Agro:The relationship is less significant as the P-Value is larger than .10 which is .293. So we can not reject the null and we can state that – “This independent variable is not a significant predictor of the dependent.”
Opportunity to get Sales/performance incentive from Bay Agro:The relationship is significant as the P-Value is less than .10 which is .065. So we can reject the null and we can state that – “This independent variable is a significant predictor of the dependent.”
After sale service quality of Bay Agro:The relationship is significant as the P-Value is less than .10 which is .056. So we can reject the null and we can state that – “This independent variable is a significant predictor of the dependent.”
Pricing policy of the Bay Agro:The relationship is significant as the P-Value is less than .10 which is .008. So we can reject the null and we can state that – “This independent variable is a significant predictor of the dependent.”
Recommendation:
From all the analysis it evident that in this industry price and quality are the most important factors behind success. Though Bay Agro is doing well in these segments but still there is lots of room for improvements. There some dealers who are still not satisfied with the price and quality of the Bay Agro. So to be a market leader Bay Agro must have focus on these factors.