Internship Report on Marketing Glasstech Limited

Executive Summary

It is an internship report that I have furnished on “Total Quality Management (TQM). – A study on Glasstech Limited”. In my report I have analyzed the marketing activities of Glasstech Limited through company analysis in relation with industry analysis. Whereas I have found some problems in it’s marketing activities, internal strengths and weakness, environmental threats and opportunities for the organization. At the end of my report I have recommended for solving the marketing problems, using internal strengths, overcoming internal weakness, facing environmental threats, and indicating the opportunities for the organization that the organization can adopt for its own interest.

Internship

        The theoretical knowledge and practical training is not the same theme. The theoretical knowledge is fulfilled when it can be used in the practical field. For this reason in the several educational institutions the students usually perform the internship. Internship is a practical training which means to acquire knowledge and information. In another direction, internship is a process to achieve practical knowledge about some theoretical lesson. Actually internship means having a practical knowledge from real field of work. In this activity students acquire theoretical and practical knowledge, so that they can appoint themselves to an eligible post after completing their course. Some definitions of internship are given below:

1. According to Green, “Standard method taken for searching knowledge are meant internship.”
2. According to Oxford Dictionary. “Internship means practical experience getting in a job”.

Internship has become a part and parcel of modern education. At present other courses of education has aborted internship as a major requirement. Theoretical knowledge is important for development understandability of a student. But except of some practical training these theoretical knowledge is incomplete. During internship the students face various practical problems and thus they learn how to deal with those problems. It increases the students’ efficiency to take decision in proper time and right way.

Form the above discussion; I can conclude that internship is the name of such method, from where a student can acquire practical knowledge as well as theoretical.

Introduction

        From the civilization period people knew how to make glass and how to use glass. At that manufacturer made glass basically from sand. Till today this practice is going on. But the tools used for this purposes have been partially changed. Now a piece of glass can be made from sand, silica gel, mercury etc. Now a days the usages of glass is rapidly increasing in Bangladesh.

     For rapid increasing the market demand of glass, some glass companies are doing operations to meet up the market demand like Glasstech Limited, Nasir Glass, Euro Bangla Glass and PHP Glass. All glass companies are trying to capture maximum customers in order to increase their sales volume as well as profit maximization and also sustain in the glass industry for a long run. Glass industry is now growing stage and there is huge potential market in our country. As a result new competitors are engaged in this glass industry day by day.

    Glasstech Limited is one of the leading companies in glass industry sector in Bangladesh. The products Glasstech Limited are tempered glass, mercury glass, automatic glass door, glass paint, glass brick, glass related fittings, alcotex, vehicle’s glass, windshield & fittings. Glasstech Limited imports their product mainly from well-reputed companies from Belgium, China, Taiwan, Indonesia and Hong Kong. Their target market is industrial buyers, various types of profitable & non- profitable organizations and ultimate consumers.

     Glasstech Limited is a well-reputed organization in glass industry. As their mainly target customer is the industrial buyers, so they are very much well known to industrial buyers. Industrial buyers purchase from them, and then industrial buyers sell it to the retailers and the ultimate consumers. Side by side Glasstech Limited also sells their product to various types of farms and the ultimate consumers.

      I have selected my topic on “TQM (Total Quality Management) of Glasstech Limited”. I think; this is an interesting & uncommon sector. At present glass business field is very competitive because many competitors are playing in this field. To stay in such business field for a long-run TQM (Total Quality Management) must be better than others. So, at present every business organization emphasis on the TQM (Total Quality Management) to satisfy the customers as well as to sustain in their business field for a long run.

Historical Background of Glasstech Limited. 

       Glasstech Limited is a part of R.M. International. The corporate office of R.M. International is situated at Agrabad in Chittagong. R.M. International is engaged in various industries. Glass industry is one of them. Glasstech Limited has three branches. The corporate office or main branch is located at Agrabad in Chittagong. Two branches are located in Dhaka. One is located in Banani and another is in Mohakhali. Glasstech Limited imports glass & its related equipment from Belgium, China, Taiwan, Hong Kong & Indonesia. They receive their container from Chittagong port. Then the major portion of total containers is distributed to the Dhaka office.

       In our country, traditionally buildings are mainly made by bricks. But now a days building are made by glass side by side bricks. Brick’s building is suitable for little multistoried building, but using glass instead of bricks is more suitable for various types of multistoried buildings. Bricks are heavier than glass. For using glass instead of bricks, buildings become less bulky. As a result, buildings can face successfully stronger earthquake and others natural disaster. At present in the whole world, glass is used to build in high-rise multistoried buildings. According to a famous poem; “Buildings made off glass & light”. In our country the numbers of high-rise multistoried buildings are increasing day by day because of, lack of availability of land and higher expansion of business activities very quickly all over the country. Glass is also needed for beautification.

       Glass made product like automatic glass door, temper glass door, glass bricks, vehicle windshields, glass paint & glass fittings are used in office, shop, shopping center, home and profitable & non-profitable organizations. The demand of such types of product is increasing day by day. Because of not only beautification but also to create a positive image to the actual & potential customers and self-satisfaction. Some years ago such type of product was not so available in our country. After entering some glass company like Glasstech Limited into the glass industry, such products are available in glass market and customer can purchase such product in cheaper rate than before. As a result at present, the use of such type of products is in the satisfactory level & rapidly highly increasing.

Background of Glass Sector in Bangladesh

       In the ancient history of Bangladesh, glass was highly costly item. Only a few royal families used glass products in the very short portion. They bought glass product from Arab & Chinese merchants who came to purchase muslin cloths & spices from the sub-continent as well as Bangladesh. In the rule of “Sen” period, only Sen Family used the glass products. At that time glass was more costly than gold. In the rule of “Mughal” period only royal family like emperor, ministers and landlord used glass product. They also bought glass product from Arab & Chinese merchants who came to purchase muslin cloths & spices from the sub-continent. In the rule of “British” period glass become available in royal & rich people. At that time India as well as the sub-continent could produce glass. Side by side, British Government was import glass product from Europe. The quality of glass & glass products of Europe was better than sub-continent’s glass & glass products. But the sub-continent’s glass & glass products was cheaper than European glass. At present glass are not only a product of royal & rich people but also every types of people use glass product.

Concept of TQM (Total Quality Management)

       In 1950 an American consultant “W. Edwards Deming” introduced the concepts of TQM in Japan. In short sense TQM is a system of means whereby the qualities of products or services are produced economically to meet the requirements of the purchaser.

        In broad sense TQM is a unified, integrated and systematic approach, which is involved to consumer satisfaction through delivering the qualified product at the right time in a reasonable price to the consumer. In order to perform TQM effectively, throughout all phases of the enterprise activities such as market survey, research and development, planning of product, design, production readiness, procurement and subcontract, manufacture, inspection, sales and after sales servicing as well as finance, personnel affairs and indoctrination, whole personnel including from the executives down to the managers, foremen and workers are required to participate and collaborate.

        From the above discussions we can identify three major principles of TQM, these are –

i)             Total customer orientation

ii)           Total employee orientation

iii)          Continuous improvement

Significance of the Study:

       Internship program is an important program for the degree of MBA (Masters of Business Administration). It is also a course like factor. But it performs the academic activities differently. In internship program, the students try to achieve both practical & theoretical knowledge. Theoretical knowledge earned at student life especially at BBA (Bachelor of Business Administration) and MBA (Masters of Business Administration). It helps to enrich the students’ confidence concerning the application of their theoretical knowledge in future.

       At present, business is very much competitive. So, to survive in the competition at present globalization era the business bodies need to perform their activities very carefully and effectively. TQM (Total Quality Management) is an important tool in business for surviving in the competition to perform the marketing activities effectively. The company either large or small should go ahead in a planned way by maintaining TQM (Total Quality Management). That’s why; the company always tries to follow the principle of TQM (Total Quality Management.

        The responsibility of TQM (Total Quality Management), the management must apply the marketing plan to achieve company’s strategic objectives. Product planning, design, sales and after sales servicing as well as finance, personnel affairs etc, all are included into TQM (Total Quality Management).

        Each level of an organization must maintain TQM (Total Quality Management) for achieving its specific goal. TQM are becoming more customer and competitor oriented and better reasoned and more realistic than in the past. TQM is becoming as continuous process to respond rapidly changing market conditions. The most frequently cited start coming of realism insufficient competitive analysis and short run focus. So, TQM must be reality basis. The competitor should always deeply as far as possible and the views of the TQM should be long term.

       Glasstect Limited also maintains TQM (Total Quality Management). That is why; I have decided to analyze its existing TQM (Total Quality Management). Also, I have tried to provide Glasstect Limited some possible recommendation. Always I have tried to use my all out knowledge about developing TQM for Glasstect Limited, which I have learnt at academic life. I think my recommendation about TQM (Total Quality Management) would be useful for Glasstect Limited in future.

OBJECTIVES

 To identify the competitors of glass & relevant product.

 To understand the current condition of Glasstech Limited in          order to TQM.

 To identify the problem of Glasstech Limited as per TQM.

 To give some recommendations in order to TQM.

 To acquire practical knowledge side by side theoretical knowledge.

Organizational Structure

Glasstech Limited is an enterprise of R.M International. The organizational structure of Glasstech Limited is as follows-

All the departments of Glasstech Limited are accountable to Executive. Executive is accountable to M.D (Managing Director). G.M (General Manager) and A.G.M (Assistant General Manager) coordinate the departments. They are accountable to Executive and M.D (Managing Director).

Industry Analysis

       Before starting industry analysis we should have to know who are the customers of that industry.

We may segment the customer of the glass industry into two types.

1. Individual buyer (who buy the product for personal use).

2. Industrial buyer

       To analysis any types of industry, we have to proceed through a continuous successive process and for this, at first need to analyze a specific firm’s condition. Glasstech Limited is a firm of glass industry. However it is possible to accomplish industry analysis through the following chart.

Threat of New Entrants:

       If entry barrier is high than possibility will be lower to enter new firms in an industry. This situation is favourable for existing firms but not positive sign for potential up-coming firms. Its depends on the following factors:

• Ø High fixed cost.
• Ø High exit barrier.
• Ø Low market growth rate.
• Ø Potential market is very small.

In glass industry fixed cost is very high and exit barrier is also high. To start a firm, huge amount of capital is needed. There is a great chance to glass damage in transportation time. Insurance companies of our country are less interest in glass insurance. That means, insurance companies are not interested to take any risk of glass industry. So, there is huge risk to invest in glass industry. As a result the competitors do not inspire to enter this industry. Not only the above factors but also product differentiation, switching cost etc is threat of new entrants. So, the possibility to enter a new firm in this industry is less.

Bargaining Power of Buyers:

       Although there are many glass items with various brand name in glass market, but the bargaining power of the buyer is comparatively low due to less brand competition. In this industry, the company who has achieved unique level through product differentiation, they don’t compete (a face competition) with low quality and low price glass items. For instance, Glasstech Limited never competes with local glass producers. In this situation the buyers’ segment is related with their own buying power and willingness. In generally, the buyers get a few options like Glasstech or Euro Bangla. As a result the bargaining power of buyers is low. This situation is favourable for Glasstech limited. There is a chance to gain profit maximization. But this situation is good in the point of view of a general buyers or industrial buyers. When industrial buyers sell it to the ultimate consumer, here profit becomes little. In glass industry, industrial buyers have to gain little profit.

Threat of Substitute:

       At present glass industry’s has some substitute product. The main substitute product of glass is transparent plastic. Now a days transparent plastic is used instead of glass. Volvo Company use transparent plastic instead of glass in their bus window. Transparent plastic door is the substitute product of tempered glass door. Automatic door can be made by transparent plastic or plywood instead of glass. Hollow Block Bricks is the partially substitute product of glass bricks. Such type of substitute product is cheaper than the glass. So, the above substitute products are threat of glass industry.

Bargaining Power of Suppliers:

      Glasstech Limited imports glass directly from Belgium, Hong Kong and Indonesia. So, suppliers are located in Belgium, Hong Kong and Indonesia. Glasstech Limited sells glass and glass made items, which they make themselves to industrial buyers & ultimate consumers. Glasstech Limited imports directly a large volume of glass from these countries by ship. Though they import a large volume of glass at a time frequently, so bargaining power of suppliers are not strong. On the other hand Glasstech Limited can bargain with suppliers.

Rivalry among the Existing Firms:

      Rivalry means when the market growth rate is zero and in future there is no chance to create new market, in this situation every firms try to cut market share of other firms’ in order to increase own market share. This situation is known as rivalry among the existing firms. In glass industry, market growth is in satisfactory level and the number of firms of glass industry is very limited. So, at present there is no chance of rivalry situation in glass industry.

       At last, it can be said by glass industry analysis that there is no perfect competition. Few firms dominate the total glass industry. So, glass market is an oligopoly market.

Methodology

Methodology is a strategy that is under taken by researcher for doing his research work. So, methodology is very important for doing the research work in a systematic and effective way. In this study, I have analyzed TQM (Total Quality Management) of Glasstech Limited. I have followed descriptive research methodology. For this reason, I have for analyzing various factors related to the study. I have defined their managerial activities step by step as well as the marketing activities related with TQM. I have described the problems in each step & propose some recommendation in each step to over come the problems considering the company’s strength, opportunity, weakness, risk, uncertainty and future intention.

Data Collection Procedure

         I have used both the primary and secondary sources. Primary sources are that sources from where the researcher collects the data directly from the respondent by using questionnaire. Primary data can be collected by telephone or mail or video conferencing or face-to-face communication. To identify the problem, I have talked to executive and authorized responsible persons for their total activities as well as marketing activities to the first hand. Moreover, I have talked to Banani showroom of Glasstech Limited product about 200 industrial buyers and ultimate consumers. The industrial buyers and ultimate consumers are selected randomly. The questionnaires were used to collect the data form industrial buyers and ultimate consumers and employees. The questionnaire was both close-ended and open-ended. Some data have collected form executive. I have collected data orally and some data through questionnaire. The questionnaire was also close and open ended. Besides of executive I have talked to all types of employees & worker for data collection. In addition, I have collected some information form secondary sources.

Sampling Design Process:

         Sampling design process includes four steps. These steps are closely interrelated and relevant to all aspect of marketing research project, from problem definition to the presentation of the result. Therefore sample design should be integrated with all other decision in research project.

Steps in sampling design process are as follows:

Target population: The persons whose are directly or indirectly related with Glasstech Limited as well as glass industry like employees, industrial buyers and ultimate consumers.

Sampling unit: I have taken 200 sample units.

Sampling Technique: I have taken convenience sampling method and cluster sampling method.

Sample size: I have taken 200 samples.

Sources of data:

           Two type’s data are needed to make this proposed research.

 Primary source

 Secondary source

Primary data will be collected from the persons whose are directly or indirectly related with Glasstech Limited as well as glass industry like employees, industrial buyers and ultimate consumers.

Secondary sources are that sources, which are printed out, come of previous research. Secondary data will be collected from possible published media. Such as journals, magazines, newspapers and web site.

Data collection methods are described bellow:

Data Collection Method:

        Data collection is an important task for every researcher. It is not an easy job. The task of data collection beings after a research problem has been defined and research design/plan chalked out. While deciding about the method of data collection to be used for the study, the researcher should keep in mind two types of data primary and secondary. These two sources of requiring data are as follows-

1. Primary Sources of Data:

        The primary data are those that are collected a fresh and for the first time and thus happen to be original in character. In another direction, I can say that primary data are those that are originated by the researcher for the specific purpose of addressing the research problem. The data carry the real characters that are expected by the researcher. To conduct the research these data are used as raw material in the research. The source from where primary data are collected is called primary sources. It is the main source for collecting data from the field. I have collected data from primary sources to make my research work up to date. For this purpose I have collected data directly from customer and various officers of Glasstech Limited. I have collected primary data by the following methods-

a) Survey Method:

        Survey method means a structured questionnaire given to a sample of a population and designed to elicit specific information from respondents. Respondents are asked a variety of questions regarding their behavior, intentions, attitudes, awareness, motivations, and demographic and lifestyle characteristics. Survey questionnaires may be administered in four major modes.

•  Telephone Survey Method:

        The data that are collected by telephone or mobile phone is called telephone interview. In this method, communication is maintained with responded group and asked a set of questions. In this case, the interviewer uses a written questionnaire and records the answer in written. But it is very costly method. As a student, I am not more capable to expanding this big amount. Since it is more expensive, so I have little used this method.

•  Personal interview:

        Data that are collected by personal interviewing from home, central location intercept, or any other places. Personal interview method requires a person known as the interviewer asking questions generally in face-to-face contact to the other person. I have collected data by personal interview for my research work. Because, it is not expensive and time-consuming process. One of the most notable advantages of this method is that the reaction of the respondents can be known directly.

• Mail Survey Method:

        The data that are collected by mail is called mail survey. In the traditional mail interview questionnaires are mailed to pre selected potential respondents. A typical mail interview package consists of the outgoing envelope, cover, letter, questionnaire, return envelope, and possibly an incentive. The respondents may not response under this method. This method is time consuming and expensive. So I didn’t use this method.

• Electronic Interview Method:

        The data which are collected through e-mail and internet is called electronic interview method. Here, the respondents must be highly educated. It is an expensive method. So, I have used little bit this method.

b) Observation Method:

        Observation involves recording the behavioral patterns of people, objects, and events in a systematic manner to obtain information about the phenomenon of interest.

        In this case the observer doesn’t ask any question to the person. Here, information is noted by observing the behavior of any person in the occurred situation. Information is collected and written from the past events.

        There are some problems in this method. Such as the selected perception of the researcher that biases the collected data, time consuming expensive and there are some personal conducts that are really difficult to observe/perceive. For these problems, I didn’t use observation method in my data collection process.

2. Secondary sources of Data:

        When data are collected from the sources that have been collected earlier is called secondary sources. Secondary data means data that are already available i.e., they refer to the data that have already been collected and analyzed by someone else. Secondary data may either be published or unpublished data. These data have already been passed through the statistical process and used in the research or any other purposes. Secondary data are collected from previous research works, reports, publications and various existing sources. Secondary data are very important to conduct an efficient research and to have fruitful results. I have collected these data from the following sources –

Internal sources:

• Ø Company profiles.
• Ø Daily sales records.
• Ø Prior research reports.
• Ø Any information regarding Glasstech Limited.
• Ø Printed works.
• Ø Company’s leaflet, annual report, and other publications.

External sources:

• Ø Several types of papers and periodicals.
• Ø Journals and magazines.
• Ø Government reports.
• Ø Newspapers.
• Ø Internet services.

Questionnaire Preparation:

        Questionnaire is the set of questions that have been fixed earlier on the basis of which the respondents give the answer of the questions. I was very careful when I prepared the questionnaires. Question wording is perhaps the most critical and difficult task in developing questionnaires.

        Especially wording of the questionnaires was emphasized because the clear answers depend on the clarity of the questionnaires. At the time of preparing questionnaires a great care has been taken about the sequence of the questions. The matters that I have emphasized carefully are given below:

• Ø Using simple language.
• Ø Use ordinary words.
• Ø To be specific as possible.
• Ø Avoid dual statements.
• Ø Avoid unwanted question positive and negative.
• Ø Avoid lengthy question.
• Ø Deduct leading question.
• Ø Avoid estimated question.
• Ø Deduct ambiguous question.
• Ø Avoid generalization.
• Ø Avoid implicit alternatives.

Except those I have used some close-ended questions so that the respondents can give the answer easily and consequently helped for tabulation. I also used open-ended questions so that the respondents can express their judgment on the questionnaires.

Literature Review

       As per I know there is no remarkable research in upper level on this field. But some persons have taken part in research on this field for their university academic purpose.

       Hossain, Misbah remarks that Glass Company should improve their product variation. He also remarks that there is no perfect competition because of oligopoly market.

       Hassan, Rakibul describes that most of the glass companies’ primary objective is profit maximization not customer satisfaction. But these types of companies have to understand for their bright future in glass industry that profit will come automatically if they can satisfy the customers. May be per unit profit will be decreased but total profit will be increased.

       Gofran, Mazumder Fazle remarks that glass market is more centralized in Bangladesh, though market growth rate is high and actual & potential customers are available all over the country.

Justification of the study:

           At present glass & its relevant products are so important to make or decorate buildings, homes, furniture and vehicles. For high-rise multistoried buildings, glass is very essential to reduce the building’s weight. As a result building becomes long lasting.

           At present many people are directly & indirectly with glass industry. Glass industry can be considered as an important growth providing employment opportunity in Bangladesh. So, glass industry can contribute the economy of Bangladesh.

           If I analyze the TQM (Total Quality Management) and findings some things new, it will be easier for the Glastech Limited how to satisfy the buyers by maintaining overall quality. It will be helpful for the future researchers to do research on this field. It will also create awareness to the potential buyers & potential entires of the glass industry. This research also helps Glasstech Limited as well as the Glass Industry to operate their marketing activities efficiently to increase sales.

Limitation:

• Sample size of the respndents was not very large. If it is larger than better result might come.

• Some respondents might not give honest answer.

• Samples are selected on the basis of convenience.

• Some of the respondents were not interested in answering the questionnaire.

• Lack of my experience, some error may be happened.

• As I am a student, so I don’t have enough money to bear the full expenses of such research work. I have faced the shortage and hindrance of money to do this research work. Because, the expenses of traveling different areas or appointing workers to perform the activities to complete this program is so high, this was not fully affordable for me. So I could not able to collect all necessary information.

Time Schedule:

           To prepare this report the following times has taken:

   Literature review & secondary information……… 20 days

           Data collection…………………………………………. 35 days

           Data analysis & interpretation………………………. 10 days

           Report writing…………………………………………..       9 days

           Computers compose        ………………………………….  3 days

           Binding……………………………………………………  3 days

            Total Time……………………………………………….. 80 days

Product Situation

        Glasstech Limited imports a lot of glass items & its accessories and they produce some products by using glass items & its accessories as raw material. The name of product, model, price etc are given below as tables:

Door items: Glasstech Limited produce glass door by using glass & related accessories as raw material. Glasstech Limited imports these raw materials from Thailand and Indonesia.

Glass Door

Source: Glasstech Limited

     Door accessories: To produce a swing door the following accessories are needed. Accessories are imported from Thailand and Indonesia.

Door Accessories (Fittings)

Source: Glasstech Limited

Door Accessories (Handle)

Source: Glasstech Limited

Shower Door

Source: Glasstech Limited

Accessories (Shower Door)

Source: Glasstech Limited

Wall Glass: Wall glass is such type of glass that is used instead of brick’s wall as building’s outfit. Glasstech Limited imports such type of glass & its accessories from China, Taiwan and Indonesia.

Wall Glass Accessories

Source: Glasstech Limited

Glass Block (Glass Brick): Glass Block is one kind of glass product. This product is used instead of general bricks. Mainly this type of product is used for beautification. Glasstech Limited imports four types of blocks (Clear Block, Small Clear Block, End Clear Block and Colour Block) from Indonesia. At present, this product is very much popular for beautification.

Glass Block (Glass Brick)

Source: Glasstech Limited

Alluminium Composite Panel: It is an alluminium board. This board is used for building outfit. It pasted on the wall plaster for beautification. It is free from fungus and iron-oxide. It imports from South Korea.

Alluminium Composite Panel

Source: Glasstech Limited

Automatic Door: At present, many organizations and homes use automatic glass door. This door is automatically open and close. When a person comes near the door, sensor identifies the person than the door open. Glasstech Limited imports Automatic Glass Door from Sweden.

Automatic Glass Door

Source: Glasstech Limited

Hang Door: Hang door is one type of sliding door connected with some roller hanger in order to sliding. Hang Door is very popular in Bangladesh at present. Its demand is increasing day by day. Mainly hang door is used in office and shops. Its glass and related accessories is imported from Thailand, Taiwan, China, Malaysia and Singapore.

Glass Hang Door

Source: Glasstech Limited

Glass Hang Door Fittings

Source: Glasstech Limited

Glass Sheet: Glasstech Limited imports glass sheet. They sell glass sheet as a full sheet or as square feet. Glass Sheet is imported from China, Indonesia, Taiwan and Belgium.

Glass Sheet (Reflective)

Source: Glasstech Limited

Glass Sheet (Clear Glass)

Source: Glasstech Limited

Glass Sheet (Bronze Glass)

Source: Glasstech Limited

Glass Sheet (Mirror Glass)

Source: Glasstech Limited

Glass Sheet (Others)

Source: Glasstech Limited

Vehicle Glass: Glasstech Limited imports vehicle glass from Indonesia. But they import only windshield as vehicle glass for bus.

Vehicle Glass

Source: Glasstech Limited

Table Top: Glasstech Limited imports table top as well glass table from Thailand.

Table Top

Source: Glasstech Limited

Procurement

Glasstech Ltd – Dhaka

Closing statement of Glasstech Ltd- Dhaka as 31st December, 2006

[1st July, 2006 to 31st December, 2006]

 Source: Records of Glasstech Limited

Glasstech Ltd – Dhaka

Closing statement of Glasstech Ltd- Dhaka

AS on 31 December -2007

Source: Records of Glasstech Limited

Findings

         The research was limited within respondents in the Glasstech Limited & others. During the research I came to face different facts regarding the respondents’ attitude toward the TQM (Total Quality Management). Here I am stating those findings.

• There were a total of 200 respondents who were surveyed. Among them 82% were male and 18% female respondents.
• The income level of the respondents in a year is Tk. 200000/- to Tk. 1000000/- or above.
• Educational status of the respondents was 6% of them were HSC passed, 60% was Graduate and 34% Post-graduate.
• Respondents were carefully chosen from four different age classes- 12% of the respondents were 18-30 years old, 43% of them were 31-40 years old, 34% respondents were 41-55 years old and 11% respondents were 56 & above years old.
• 22% customers have been using Glasstech Limited’s products for more than 10 years, 36% customers have been using for more than 5 years and 42% customers have been using for less than 5 years.
• 28% customers have been purchasing from Glasstech Limited for more than 10 years, 31% customers have been purchasing for more than 5 years and 41% customers have been purchasing for less than 5 years.
• In product satisfaction level, only 1% customers are dissatisfied, 8% customers are neither satisfied nor dissatisfied, 34% customers are satisfied, 46% customers are very satisfied and 11% customers are delighted.
• Customers’ opinions about product variation is only 6% customers are neutral, 44% says good, 42% customers says very good, 8% customers says excellent and nobody is dissatisfied.
• 62% customers are very satisfied and 38% are satisfied about the location of Glasstech Limited.
• About the relationship with Glasstech Limited; 39% customers said good, 38% customers said very good and 23% customers said excellent.
• About the Total Quality Management of Glasstech Limited; 6% customers said bad 47% customers said good, 38% customers said very good and 9% customers said excellent.
• About the modern customer facilities of Glasstech Limited; 7% customers are neutral, 46% customers are satisfied, 34% customers are very satisfied, 6% said excellent and 7% customers are dissatisfied.
• About the pricing of Glasstech Limited; only 6% customers are not satisfied, 63% says satisfied, 14% customers says very satisfied, 3% customers are delighted and 14% is neither satisfied nor dissatisfied.
• 82% customers believe Glasstech Limited wants a first time customer becomes a life time customer and 18% are not.
• About prevention of risk & uncertainty of Glasstech Limited; Only 8% customers said bad, 12% are neutral, 36% customers said good, 29% customers said very good and 15% customers said excellent.
• 4% customers faced problem in purchasing time and 96% are not faced any problem in purchasing time.
• About overall satisfaction to Glasstech Limited; only 3% customers are not satisfied, 63% says satisfied, 17% customers says very satisfied, 3% customers are delighted and 14% is neither satisfied nor dissatisfied.
• Customers expect from Glasstech Limited; low price, timely delivery, discount, after sales service and price stability.
• 39% customers transact with other glass farms and 61% customers transact only with Glasstech Limited.
• The customers who transact with other glass farms; 7% said it is better than Glasstech Limited, 76% said similar and 17% said bad.

        Now, in the following section I am including the graphical representation of all the above mentioned findings and the response of the respondents regarding the various questions of the questionnaire.

Q3. Are you satisfied using Glasstech Limited’s products?

Q7. What is your satisfaction level about the location of it?

Q8. What is your consideration about the relationship with Glasstech Limited?

 Q9. What is your opinion about the Total Quality Management of Glasstech Limited?

 Q10. What is your observation about the modern customer facilities of Glasstech Limited?

Q11. What is your evaluation about the product variation of Glasstech Limited?

Q12. What is your evaluation about the pricing of Glasstech Limited?

 Q14. What is your observation about prevention of risk & uncertainty of Glasstech Limited?

Q18. Do you overall satisfied to Glasstech Limited?

  Q22. How much popular it, from its competitors?

The following table consists of the total percentage of the various questions of the questionnaire and the respondents’ attitude toward the subject of the question- either positive, negative or no comment.

SWOT Analysis

       The SWOT analysis means to identify the firm’s internal strengths and weakness as well as its external opportunities and threats. From the previous discussion about the Glasstech Limited’s an overall picture or scenery has revealed to us.

SWOT means;

         S = Strength (Favorable internal factors of the organization)

        W = Weakness (Unfavorable internal factors of the organization)

         O = Opportunity (Favorable external factors of the organization)

         T = Threat (Unfavorable external factors of the organization)

Detail findings about the SWOT are presented below;

Strengths of the Glasstech Limited:

        Strength is ability of farms. By using it, a farm can achieve its target and competitive advantages. The existing strengths of this farm are as follows:

1. Glasstech Limited has experienced person who has worked in the various institutions. So, they have gathered knowledge how the farm runs efficiently.
2. Favourable working environment.
3. Good relation between top to bottom.
4. Available human resources.
5. To have some skill labours who are very well trained.
6. They have huge asset to invest.
7. They have no liquidity problem.
8. Employees are very much committed to their organization.

Weakness of the Glasstech Limited:

        Weakness is the internal and existing limitation of a farm for which they become unable to gain competitive advantages. Some weaknesses are as follows:

1. It has no research and development activities.
2. Lack of power supply to the production center and it has no own power system.
3. Lack of rapid decision making.
4. Traditional management system.

Opportunities of the Glasstech Limited:

        Marketing opportunity to a business farm means the area, where the farm will be able to perform its business activities with effectively and profitably. Such as;

1. Whereas to have huge demand of glass products in Bangladesh. So, market can be expanded in the domestic country.
2. Greater possibility to product diversification with quality.

Threats of the Glasstech Limited:

        Threats are an external obstacle or barrier for which a firm can’t achieve its predetermined goals. The major threats of this farm are as follows:

1. Due to globalization the entry barriers are low in every industry. For why, competitors are increasing.
2. Political unrest or instability is another threat of this organization. Because of Hartal and Political Violence, sales and production is hampered and it cannot supply the product at the right time.
3. Increasing other glass organization’s domination.

        It is mainly depending on bank loan and government policies. Favourable policies may be changed by government in any time and bank may create pressure for paying bank loan and interest.

Gap Analysis

       Customer perceptions are subjective assessments of actual service experience. The following figure corresponds to two concepts: customer expectations and customer perceptions that play a major role in service marketing. Customer expectations are the standards of or reference points for performance, against which service experiences are compared, and are often formulated in terms of what a customer believes should or will happen.

         The sources of customer expectations consists of market controllable factors (such as pricing, advertising, sales promises) as well as factors that the marketer has limited ability to affect (innate personal needs, word-of-month communications, competitive offerings). In a perfect word, expectations and perceptions would be identical: customers would perceive that they receive what they thought they would and should.

        Customer satisfaction is well depended on how successfully the companies can reduce or close the gap, as shown in the above figure. In broad sense, the process of closing the customer gap can be subdivided into four organization gaps’, discrepancies within the organization that inhibit delivery of quality service.

Organization gap 1: Not knowing what customers expect

Reasons:

• Inadequate marketing research orientation.
• Lack of upward communication.
• Inefficient relationship focus.

Organization gap 2: Not selecting the right service designs and standards

Reasons:

• Absence of customer-driven standards.
• Inadequate service leadership.
• Poor service design.

Organization gap 3: Not delivering to service standards

Reasons:

• Deficiencies in human resource policies.
• Failure to match supply and demand.
• Customer not fulfilling roles.

Reasons:

• Ineffective management of customer expectations.
• Over promising.
• Inadequate horizontal communication.

Coming back to my project, I tried to find out the four organization gaps of Glasstech Limited, considering the data that I have attained through survey and secondary research.

Glasstech Limited’s Organization Gap 1

Not knowing what customers expect

Glasstech Limited does extensive marketing research on a continuous basis. Moreover, there is always bottom-up communication, which enables Glasstech Limited to better understand what customers expect; because the low-end officers deal the customers and they better understand what customers expects.

So, I reach to the conclusion that Glasstech Limited has no organization gap 1′ at present.

Glasstech Limited’s organization Gap 2

Not selecting the right service designs and standards

From the survey results and my personal observation, I found few areas that I identified as gap 2.

• Price of Glasstech Limited’s products is higher than local glass organizations’ in the context of Bangladesh. Only high level income of people can buy from them. Although their target market is high level income of people.
• The customer who are located in outside of Dhaka or Chittagong, if they desire to purchase they have to come Dhaka or Chittagong. It is a difficult job to travel all the way for such type of customers and spend significant time sacrificing his/her personal working hours. This is a considerable problem that creates gap.

After knowing such types of problems, Glasstech Limited is trying to solve above these problems.

Glasstech Limited’s Organization Gap 3

Not delivering to service standards

        This gap is also significant at Glasstech Limited. This gap is very important, because it occurs when a organization sets a standard but not deliver as per the standard. From my observation, some areas of gap 3 are:

• Sometimes Glasstech Limited takes more time to deliver their products to the customers.
• Sometimes Glasstech Limited is not able to maintain customers’ standard. This can be an alarming problem for Glasstech Limited, because it is very easy to lose customers’ in competitive market.

        Though Glasstech Limited has some service related problems but they are always trying to solve it willingly. Glasstech Limited already has been successful to build a positive and friendly image in their present & potential customers’ minds. Customers think that Glasstech Limited is sincere about solving their needs.

Recommendation

       I have designed my recommendations aiming to close the gaps between customers’ expectations and perceptions regarding Glasstech Limited’s service. My recommendations are:

• Glasstech Limited should provide economy price product with high price product to the customers that means create new market segment.
• Glasstech Limited can follow demarketing policy in overfull demand of glass product.
• Glasstech Limited can also follow remarketing policy when demand is low in glass industry.
• Glasstech Limited should not price increase when demand is very high, it may decrease their positive image.
• Glasstech Limited can establish more showrooms in many districts for improving customer service.
• Glasstech Limited may take extensive program for improving more positive image among their customers.
• If the some quality products has economy price than the new customer segment will be created and sales volume will be increased. These customers can easily buy the product or service.
• Glasstech Limited should emphasis to reduce unnecessary expenses and thus they should try to reduce the cost. When the cost will be reduced then the organization will be able to gain more profit and provide more competitive price. As a result sales volume will be increased.
• Glasstech Limited can arrange seminar, conference to provide proper knowledge about their products.

Conclusion

From the above discussion, it is clear to us that Glasstech Limited has some limitations though they have a strong position in glass industry. It is a profitable organization. Now they are in the profit maximization level. If we look at the SWOT analysis, we can see the strengths of Glasstech Limited are fairly higher than weakness. Since it is a private organization, for this reason they get some advantages. The head office provides maximum decision quickly by using modern tools & technique. The officials of Glasstech Limited can take quick decision. They take routine decision and head office gives some power to take some non-routine decisions. So, the speed of decision making is very quick.

        In the age of globalization, the government follows liberal policy regarding entry of foreign product. So, the barriers of moving product form one country to another are less than previous. Consequently, the market is being more competitive day by day. In this situation it is very tough to survive an organization without having qualified product and strong network of marketing functions. As a result, our local glass companies must be conscious of improving and maintaining product quality as well as marketing functions. They are improving continuously and quickly like Nasir Glass and PHP Glass.

        Moreover, it will be beneficial for our total glass market as well as the glass industry.

Bibliography:

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