Alita Bangladesh Ltd.

I n d u s t r i a l To u r R e p o r t
On
ALITA (BD.) LIMITED
LOCATION: CHITTAGONG EXPORT PROCESSING ZONE (CEPZ)

----PROJECT----

Overall Management practice of

Alita Bangladesh Limited

Industrial Tour Report

 2

I n d u s t r i a l To u r R e p o r t
OVERALL MANAGEMENT PRACTICE ON
ALITA (BD.) LIMITED

Prepared for: Prepared

Preparedby:
by:
Prof.S.M.Nasr Mohammad
ul Quadir Mohammad
Ahasan Kabir
Department of Finance and Ahasan
Class Kabir
ID:09303044
Banking 4thClass
year roll
BBA and ID no:09303044
University of Chittagong 4th year2008-2009
Session: BBA
Session: 2008-2009
Department of Finance and
Banking
Business Administration
University of Chittagong

Course no: 410

Project: Alita Bangladesh Limited, CEPZ

(An Export Oriented Bicycle Manufacturing Company)

DEPARTMENT OF FINANCE AND BANKING

UNIVERSITY OF CHITTAGONG
 3

Letter of Submission

Date: 29th November, 2014

To
S.M.Nasrul Quadir
professor
Department of Finance and Banking
University of Chittagong.

Subject: Submission of report based on industrial tour.

Dear sir,
It is a great pleasure for me to submit you my Report on “Management
Practices in ALITA (BD) LIMITED to fulfill the requirement of 4 th year
BBA program.

For constructing a complete report, I tried my best to gather relevant

information and data as outlined. The preparations of this report enable me
to a great extent to complement my theoretical knowledge with practical
analysis. I would like to express my gratitude for cordial guidance in
preparing my report in the given time.

Thanks a lot for your cordial co-operation.

Sincerely Yours

Mohammad Ahasan Kabir

4th year BBA (F & B)
Class Roll No and ID :- 09303044
Department of Finance and Banking
University of Chittagong.
 4

Bismillahir Rahmanir Rahim

Dedicated To our -
Beloved Parents And Teachers
 5

Table Page Number

Preface 6
Acknowledgement 7
Methodology 8
Objectives and Functions 10
Scope And Sources 11
Limitations 12
Chapter1
Introduction Part 14
Company’s brief history & background 14
Department and Division 17
Chapter 2
Human Resource Development 22
Chapter-3
Marketing Management Part 34

Chapter-4
Management Practice Part 39
Chapter-5
Financial Management Part 42
Chapter-6
Analysis of Problems 47
Chapter-7
Recommendations and Suggestions 51
Conclusion
Bibliography 57
Appendix =========
 6

TABLE OF CONTENT

PREFACE

Now a days there says that present business environment is

changeable .To understand this statement every small and large industry
follow various rules, principles, strategy and their operation procedure. To
capable and understand every student the authority of Finance and banking
Department arrange totally practical education and include into the text
syllabus in the 4th year B.B.A. (F&B) in Chittagong University. This
investigation is one of the parts in the syllabus. Every year arrange such like
of program. After the program every student asked to prepare a tour paper
report. This program actually compliment able that was made for 4th year
B.B.A. (Finance and Baanking) student in Chittagong University. Student
can obtain practical knowledge after study this investigation, which would
not be possible in the way.

I visited ALITA (BD) LIMITED and collected various information

about it. This Tour Paper report is based on that collected information.
 7

Acknowledgement

On submitting this Tour Report of 4th year BBA, I would like to

express my heartiest gratitude and indebtedness to several persons.

First of all I would like to express my deepest gratitude and

heart-felt thanks to my honorable supervisor Prof.Dr.ZAHANGIR
ALAM, ,and Prof.S.M.Nasrul Quadir Department of of Finance and
Banking , University of Chittagong. It is a great fortune for me in
receiving encouragement and co-operation from him. I am indebted
to him for kind guidance, valuable advice, instructions and persuasion
and encouragement to assist me in all stages of preparing this report.
Frankly speaking, I was not able to complete this study without his
advice and kind co-operation.

It is an excellent opportunity to heartiest thanks to Mr A H M

Ferdous, General Manager Alita (BD) Limited & Bicycle plant at
Chittagong, port city of Bangladesh., who helped me to gather
information.

I also extended my sincere acknowledgement to Mr. Zahedul Haque,

Unit Management in manufacturing, ALITA (BD) LIMITED for
helping me through providing necessary information and
data.
 8

METHODOLOGY

At the time of the tour on ALITA (BD) LIMITED, I have followed

several procedures. We know to complicate any kind of task; there is one
best way. That is why I have followed a number of procedures for my
knowledge. The methodology can be portrayed as below –

 Personal observation
 Discussion with the concerned officer and employee of the ALITA
(BD) LIMITED.
 Through the questionnaire.
 Analysis of collected information.

INTRODUCTION

Industrial tour is a field project for a student of Business Administration of final

year that gives the student a chance to apply business theory in practice in any
organizational environment. The objectives of the tour are:

 Practical fulfillment of BBA program.

 Application of theoretical knowledge into practice.
 Gaining work experiences
 Having an exposure for searching a good job in future.
 Knowing / understanding gap between theoretical knowledge and practical
situation.
 9

OBJECTIVES & FUNCTIONS

Tour report is a most valuable way for earning practical

knowledge of a professional degree. So, I have also some objectives
of this tour. The main objective of the tour is to gather practical
knowledge and experience on management practices of a
multinational company. The objectives behind the tour are mentioned
below:

1. To find out necessary data of an organization ,

2. To know the company’s Human Resource Management
System.
3. To know about the marketing policy of the organization,
4. To evaluate the performance of this company’s
management systems
5. To know the overall performance of financial activities,cost-
sales, and co-ordinates.
6. To find out the strengths, weaknesses, opportunities and
threats of the company and Problems Analysis.
7. To find out some necessary recommendations for the
company.
 10

Scope & Sources

The current study is conducted primarily in Participatory Research

Analysis (PRA) method and secondarily on practical and theoretical
analysis. Research topic was proposed as per the group decision and
so to the questionnaire. This questionnaire was placed before the
officials of Alita Bangladesh Ltd. subject to the approval of the
research supervisor to provide their answers. Practical visit took
place subsequently. Primary and secondary data was collected from
every possible source. The sources are:

Primary sources:
 Observation of the production and management of the
company,
 Interview of officials and concerned experts,
 Question-answer session with the General Manager of the
company,

Secondary sources:
 Bike engineering Norman,
 Related books,
 Journals,
 Newspaper reports etc.

Finally, the collected data are classified, tabulated, interpreted,

analyzed and presented in the form of tour report thereafter.
 11

Limitations

Every project \Program has some limitations. I faced some constraints during
the course of my Industrial Tour Report.
These are as follows:

1. The rate of success of my study may be limited as I may have failed to

collect proper information due to lack of my experience.
2. Some data could not be collected for their confidentiality and official
secrecy.

3. Time was not sufficient for preparing this report.

4. Collection data is very expensive.

5. Employees are not interested to provide actual information.

6. Production data is relatively applicable for related field.

7. Alita (BD) Limited has no direct sales; as a result we don’t get actual
figure of cost of goods sold, inventories control and account receivable.
 12

Chapter - 1

INTRODUCTION
 13

INTRODUCTION AND BRIEF HISTORY OF THE COMPANY:

Alita (BD) Ltd. (Alita) & Ace Bicycles (BD) Ltd. (Ace) are 100% export
oriented manufacturing companies located at Chittagong Export Processing
Zone. Alita engage in exporting own produced international standard bicycles,
while Ace manufactures necessary parts and components for Alita.

Promoters of Akoko Sdn. Bhd. could successfully interpret the upward import
trend of EU market and threat of increasing operating cost of developed country
and to take the benefit of upward import trend of EU market more competitively
they set up Alita in Bangladesh. The industry is 1st of its kind in the country as a
result there was no supporting industry to supply necessary parts for the
company, and to overcome this promoters simultaneously setup Ace.

Alita and Ace incorporated in Bangladesh with the Registrar of Joint Stock
Companies & Firm on January 04, 1994 and commenced operation in April 1995.
Authorized capital of Alita and Ace are TK. 160 million and TK. 6.66 million
respectively, subscribed & paid up capital of the two companies are TK. 19.97
million and TK. 80 million respectively.
14
 15

F I N D I N G S & A N A LY S I S
 16

Department and Divisions

The following are the major organizational part in ALITA (BD)

LIMITED.

1. Human Recourse Development

2. Marketing Management

3. Management Practice

4. Financial Management
 17

Production process:

7. Valve 5. Spoke hole 3. Rim 1.Rim

Hole Filing Punching Banding Bar
Coiling
Complete Raw
Rim materials
from Store

8. Q.C. 6. Valve 4. Rim 2. Rim

Check hole Joining Cutting
Punching With Pin
Figure: Rim Section

7. Spring 5. Slide Sleeve 3. Anti Dust 1. Plug/Dust

Up (Plastic) Tube Cap (Plastic)

How to
Suspension Assemble
Fork Suspension
Fork

8. Spring 6. Slide Sleeve 4. Erring Clip 2. Muffer Disk

Washer down (Plastic) (If necessary) (Rubber) Bolt
(Rubber)
Figure: Fork Section
 18

Chapter –2

HUMAN RESOURCE
MANAGEMENT
 19

INTRODUCTION:

Human Resource Management (HRM) is an extremely important area in

management, as modern management concepts are increasingly becoming
people oriented in character.

The term ‘HRM’ has been defined in different ways. The British Institute of
HR has defined it “as that part of the management concern with people at work
and with their relationship within an enterprise”. It has also been defined as:-

 The part of the management process which is concerned with the

human constituents of an organization. - E. F. L. Breach.

OBJECTIVES:

The objectives of Human Resource Management are as follows:

a) It is concerned with the optimum utilization of human resources within an
organization.
b) It is concerned with the creation of conditions in which each employee is
encouraged to make his best possible contribution to the effective working
of the undertaking.
c) It also concerned with the development of a sense of mutual respect and
trust between management and workers through sound relations.
 20

d) It endeavors to increase the productive efficiency of the workers through

training, guidance and counseling and
e) It tries to rise the morale of the employees.

Current Terminology:

The terms ‘HRM’, ‘Industrial Relations’, Manpower Management’, ‘Labor

Management’ etc is frequently used as if they are all synonymous.

Responsibility:

The responsibility for performing functions to achieve desired objectives

has in the foregoing been placed upon management. The primary responsibility
for personnel management in a company must be assumed by its top
management. Evaluation of the effectiveness with which desired objectives have
been attained shows where (1) future personnel plans can be improved and (2)
responsible executives can be appropriately rewarded or penalized.

Principles of HRM:

The basic principles are given below:

a. Deal with people as complete individuals. Employees may be hired for
their technical and economic usefulness.
b. Make employees feel worthwhile and related. “People do not live by
bread alone” applies to workers too.

Perspective of HRM:
 21

Human resource management must deal with the present and be

concerned with the future. It must build programs that solve problems in the
framework of today and tomorrow. But if it is to perform its tasks as effectively as
possible, it must also be aware of the past.
Forces and factors and experiences in the past have their impact upon the
present and future.

Findings of the study:

In my visited company, ALITA (BANGLADESH) LIMITED there is a separate

human resource management department. The structure of that HRM
department is as under:

MD

Operation
manager

Finance
Manager

Production
officer

A/ P/O A/PO

Job Analysis:
 22

Job analysis is the procedure by which the facts with regard to each job
are systematically discovered and noted. In short, it is a procedure for obtaining
pertinent job information. This information is recorded basically on two forms to
make a permanent record-one is called Job Description and the other is called
Job Specification. This is the primary and pre-condition before recruiting and
selecting a person. ALITA (BD) LIMITED follows job analysis before employee
recruitment.

Job Description:

Job description is a factual statement of the duties and responsibilities of a

specific job. In other words, it describes the work performed, the responsibilities
involved, the skill or training required.

Job Specification:

Job specification is a statement of the human qualities necessary to do the

job. Usually it contains such items as education, experience, training and
physical skills. ALITA (BD) LIMITED follows job analysis, job specification and
job description.

Employee Recruitment:

Recruitment is the process of searching for prospective employees and

stimulating them to apply for jobs in the organization. The sources of recruitment
can be broadly classified into two categories:
i) Internal source
ii) External source

Findings:
 23

ALITA (BD) LTD. usually searches from internal sources for recruiting the
required candidates. There are some advantages and disadvantages of internal
sources. They are:

Advantages:

1. It increases employees’ performance because employee can go higher

position than previous one.
2. Internal recruitment provides opportunity for establishing essential
relations with employees.
3. It increases morale, job satisfaction and organizational citizenship.
4. It increases facilities for good person job-fit.

Disadvantages:

1. Restriction in case of new employees.

2. Sometimes recruited employees from internal sources have lower stimuli
than recruiting from other sources.

Employee Selection:

After completing the recruitment of employees, then the selection procedure starts.
There are various types of selection test for employee selection. These are:

 Written (subjective type) test,

 Written (objective type) test,
 Oral test
 Medical test
 Others
Findings:
But ALITA (BD) LIMITED makes firstly a short list of applicants from among
all before selection test. And this short list is prepared on the basis of experience
 24

and qualification. Then the company follows the following tests for employee
selection:
 Written (subjective type) test,
 Oral test
 Medical test

But this selection procedure can vary person to person. Such that

For worker: In YSL, there is no written test for selecting workers.

For staff: Departmental manger is responsible for selecting fight people.

For Junior Manager/Brand Manager:

Human resource department takes a series of tests. All the candidates are
required to sit for written test. Besides this, written test, interview, physical test,
group performance test, physical examination is also included.

For Senior Manager:

This post is filled up through promotion and hiring from other
manufacturing concerns.
The sequence of selection procedure of this company is as follows:
 Advertising in daily newspaper
 Written test taking from short listed candidates
 Oral test
 Medical test
 Final selection

Training and Development:

Training is a corner-stone of sound management. Employees must be

systematically trained if they are to do their jobs well. Moreover, a training
 25

program gives management an opportunity to explain carefully and clearly its

policies, rules and regulations. In a large company, however, the personnel

Manager usually delegates the responsibilities for the training to a manager

or an officer in charge of the training section of the Personnel Department. There
are various kind of training methods that constitute the content of the training
programs. These are:
1. On the job training
2. Off the job training
3. Apprenticeship training

Findings:
ALITA (BD) LIMITED maintains on the job training.
This training is conducted by the supervisors or by a senior employee who is
responsible for instructing the employee. One major advantage of the on the job
training method is that the employee have first-hand experience with the job and
learns by doing.

Performance Appraisal:

Performance appraisal is a systematic appraisal of an employee by his

supervising officer who is conversant with the employee’s job performance. In
other words, it is a process of evaluating performance of an employee by his
superior with relation to his job requirements.

The main purposes and uses of performance appraisal are as follows:

1. Employee performance
2. Employee development
3. Supervisory understanding

Findings:
 26

ALITA (BD) LIMITED maintains the employee performance evaluation

regularly. The company has professional appraisers to evaluate the performance.

ASSESSMENT RATING:

The appraise (employee under assessment) and appraiser

(Supervisor) are required to make joint assessment of the performance

demonstration by

the appraisee during the period.

WAGES AND SALARY ADMINISTRATION:

In a broader sense, it is used to describe all types and forms of

compensation and benefits. It includes hourly pay of production workers and
monthly supervisory, clerical staff, executives etc.
According to popular usage of the two terms, salary normally refers to
those payments that are computed on a weekly, monthly or yearly basis for
“white collar
workers 'whereas wage refers to those payments that are computed on an hourly
or a daily basis for “blue collar workers”.

Personnel department has its own policy for salary and wage
administration.
There are some bases for setting pay. These are as follows:

a. Seniority
b. Experience
c. Performance
d. Position
e. Geographical distance
f. Academic qualification
 27

g. Personal relation

Findings:

In ALITA (BD) LIMITED, there is a specified salary structure for

employees in the organization. The main basses for setting basic pay in this
organization are seniority and performance. But this salary varies employee to
employee.

Employee Benefits and Services:

Nearly every organization provides its employees certain tangible benefits

over and above the basic pay. The term benefits and services is very widely used
to designate this area of personnel management practice. The benefits may be
financial and also may be non-financial benefits and services. The financial
benefits may be-
1. Salary
2. Bonus
3. Allowance
4. Incentives
5. Insurance or provident fund.

Again, the non-financial benefits may be-

1. Communications/transport
2. Medical services
3. Death insurance
4. Accommodation
5. Entertainment
6. Others
Motivation:
Motivation is a general term applying to the entire class of drives, desires,
needs, wishes and similar forces. To say that managers motivate their
 28

subordinates is to say that they do these things which they hope will satisfy these
drives and desires and include the subordinates to act in a desired manner.
Again, motivation can be defined as the process that account for an
individual’s intensity, direction, and persistence of effort toward attaining a goal.
The three key elements in this definition are important.
Motivation-Hygiene Theory –
This theory is also called two-factor theory of motivation and was
proposed by psychologist Fredrick Hertzberg. According to him, Intrinsic factors
such as the work itself, responsibility, and achievement, seems to be related to
job satisfaction, while Extrinsic factors such as supervision, pay, company
policies, and working conditions are associated with dissatisfaction.

Findings:

ALITA (BD) LIMITED. Follow the two factor theory of motivation. They
usually give the importance in to the intrinsic factors of the employees. Intrinsic
factors or Motivational factor which is related to job satisfaction such as
recognition, growth, advancement, work itself and achievement etc. The
organization motivates the employees by the following things:

 Handsome basic pay

 Extra allowance
 Increment in basic pay
 Job security
 Job status
 Good behavior
 Better working environment

Promotion\Demotion:
A promotion is the movement of an employee to another job at a higher level,
normally to one that carries increased prestige, pay and performance
requirements. On the other hand, promotion is the advancement of an employee
 29

to a better job- better in terms of greater responsibility, more prestige or status,

greater skill and especially increased rate of pay or salary. There are basically
three factors as a basis for promotion.

They are:

 Merit
 Seniority
 Merit & Seniority
Findings:

ALITA basically considers the merit and seniority as a basis for promotion
of an employee. In this system, experienced and senior employees both are
satisfied. As a multination organization it is essential and effective.

Interpersonal Relationship:
It improves employee’s morality and organization’s citizenship. ALITA
(BD) LIMITED improve their interpersonal relationship through party, meeting,
counseling, annual picnic and official festival.

Fringe Benefit:

Fringe benefit can be constructing to include all expenditures designed to

benefits employees over and above regular based pay and direct variable
compensation related to output.

In our practical finding, ALITA (BD) LIMITED provides such fringe

benefits.

There are a lot of fringe benefits which are provided to the employees by this
company. They are:

1. Rest room
2. Reward for long service
3. Uniform
4. Medical facilities
 30

5. Hazard protection
Management-Workers Relationship:

Management and worker relationship are good which indicates high job
satisfaction. Good relationship also indicates high morality, productivity and
group cohesiveness in this team-oriented organization. ALITA (BD) LIMITED
follows counseling, training in order to establish good-management relationship.

Chapter –3

MARKETING MANAGEMENT
 31

MARKETING MANAGEMENT

MARKETING:

Marketing embraces all the business activities involved in getting commodities of

all kinds, including services, from the hands of producers and manufacturers into
the hands of final consumers. ALITA (BD) LIMITED also practices the marketing
management as their marketing mix. But they do not follow the traditional
marketing strategies because it is a 100 % export oriented manufacturing
company.

Bicycles Market :

Bicycle as a sports & leisure items is very popular all over the world, and has
very wide market. With continued increasing trend world bicycles consumption is
over 100 million per year. Among various types of bicycles MTB, ATB, BMX, City
Bikes, Trekking bikes, are very popular with major market share. As a leisure
product bicycle is very design sensitive and due to the sports uses qualitative
sensitive too. As safety measures bicycles needs to qualify certain standards
sets by different regulatory body such as BS6002. America, European Union,
Australia and Japan are the major consumer and importers of bicycles. Major
exporters to these markets are Taiwan, China, Philippines & Mexico.
 32

Bicycle Consumption and import of EU countries for last few years were as
follows:

Year Consumption Import

2012 17,167,000 4,831,000

2013 15,593,000 4,471,000

2014 14,892,000 5,066,000

Companies:

Production and Product line:

ALITA (BD) LIMITED is basically a Bicycles manufacturing company. It actually

produce bicycles based on buyers requirements.

Target Market:

The process of evaluating each market segment, attractiveness and selecting

one or more segments to enter the present market is known as the target market.

In ALITA (BD) LIMITED, there target market is especially for foreign market.
They are marketing their products to CHINA, INDIA and according with
requirements.

Promoters of Akoko Sdn. Bhd. could successfully interpret the upward import
trend of EU market and threat of increasing operating cost of developed country
and to take the benefit of upward import trend of EU market more competitively
they set up Alita in Bangladesh. The industry is 1st of its kind in the country as a
result there was no supporting industry to supply necessary parts for the
company, and to overcome this promoters simultaneously setup Ace.
 33

Alita :

Built-up area of the factory is 31,966 Sq.ft, situated on a land measuring 61,230
sq.ft. The factory is well equipped with necessary machinery and equipment
imported from Taiwan, Hong Kong & Malaysia, which includes computerized
robotic machine and high-speed paint shop. Plant attainable capacity is 180,000
set bicycles, operating 300 working days on a single shift of eight hours per day.

Ace :

Built-up area of the factory is 27,378 Sq.ft, situated on a land measuring 56,375
sq.ft. The factory is well equipped with necessary machinery and equipment
imported from Taiwan, Hong Kong & Malaysia to produce a variety of parts and
components for bicycles. Products of the company includes, Frame, Fork,
Paddle, Saddle, Grips and Alloy Rims etc.

Sales Target:

The sales target is fixed by the marketing department. In that case, it is

ascertained the target in the different terms of period such as monthly, half yearly
and yearly shipment. Another is to make shipment according to their demand.
The target sales or export and the actual performance of the company are the
year wise report.

Promotional Measures:

Promotional decision occupies significant position in the element of marketing

mix skillful promotion can help to increase sales export in the market and to
create expected level image. ALITA (BD) LIMITED attaches much importance to
promotional activities. Three types of promotional program simply taken of the
company deserve mention:
1. Sales promotion (Export or trade oriented)
 34

2. Customer or buyer oriented

3. Online based

Sales Performance and Policies:

Selling is the best marketing task of a company. ALITA (BD) LIMITED lays
stress on promoting sales position of the company. It always makes concerned
efforts to achieve expected sales and keeps the supply position steady. Since
ALITA (BD) LIMITED is 100% export oriented company so it always tries to
develop the sales on global market.

Grading Concept of the Company:

This case has taken by the company in regard to the products. It is followed on
the capable of being divided assorted, group or classification in to certain
common lots that show similarities. We observed that ALITA (BD) LIMITED
maintains grade very strongly on their products size and quality.

Market Structure:
ALITA (BD) LIMITED is a production oriented manufacturing concern. The
nature of production is sports and luxuries bicycles.

Production Performance and Analysis:

The production target for the whole year is controlled by the marketing
department. The annual target is divided as weekly basis. The change in
manufacturing target is occurred from time to time as per the change of the world
market situation. In order to ensure the requirement of production target
regarding product quality and quantity a weekly and regular review is made.

Advertisement:

The company does not follow any advertisement strategy, only for creating
Markets’ demand ALITA (BD) LIMITED always maintains product quality.
Transportation:
 35

Transportation is a necessary function of marketing because most of the markets

are geographically separated from the area of production. On the basis of
products, there is required the various types of mode of transports to the place of
consumption. In this context the company likes the sea, air and land
transportation to carry on their products. But the company normally prefers the
sea transportation because it contains the large volume of products at a time.

Chapter –4

MANAGEMENT PRACTICE
 36

Management Body:

The companies are managed by its Board of Directors headed by Mr. Yeh Cheng
Min, founder and CEO of the companies. Corporate goal, policy and planning of
the companies are set by the CEO and are executed by a group of professionals
from various disciplines with sufficient working experience.

Mr. Yeh, a business graduate, is a pioneer promoter of the company. He is

engaged in international bicycles business for last two decades. Over the period
Mr. Yeh setup Akoko Sdn. Bhd. in Malaysia, an OEM for European market, Jen
Min Mfg. Co. Ltd., in Taiwan, a manufacturing cum trading house supplying parts
and component to Bicycles industries and Alita & Ace in Bangladesh. Mr. Yeh is
also one of the promoters of “The Premier Bank”, Bangladesh.

Mdm Chang Min Wei, wife of Mr. Yeh is another pioneer promoter and director
of the companies. She is engaged with bicycles business along with Mr. Yeh and
takes care of finance and material control of the companies.
 37

Mr. Chu Say Kar, General Manager of the companies has been in the bicycles
industry for last ten years. He started his carrier in financial sector and worked in
Australia, New Zealand, Malaysia, & Bangladesh in various capacities in multiple
disciplines. Apart from other functions he takes care of International marketing.

Goal or Objective:

ALITA (BD) LIMITED considers production for setting organizational goal

and objectives. Company has establishing rules, procedures, policies or
strategies but do not encourage participative decision-making.

MISSION:
The mission or purpose identifies the basic function or task of an enterprise or
agency or of any part of it. Every kind of organized operation has, at least should
have if it is to be meaningful, purposes or missions.

In our practical findings, the main mission or purpose of ALITA (BD) LTD is to
create or increase profit as a production oriented company.

Specialization:

This company follows work specialization for every employee. Work

specialization refers to every employees should specialized in the particular field.
ALITA (BD) LIMITED does not emphasize generalization.

Policies and Procedures:

One of the most comprehensive definitions of policy refers to the
determination of basic long term objectives and of courses of action and
allocations of resources to achieve these aims.

Decision Making:
 38

Decision making is defined as selection of a course of action from among

alternatives. Decision making may be either centralized or decentralized. The
decision making process of ALITA (BD) LIMITED is centralized by the authority.
The lower level managers can not participate in the decision making.

Span of Control:

The number of subordinates a manager can effectively and efficiently direct.

Wider span are more efficient in term of cost. However at some point wider pan
reduce effectiveness. That is, when the span becomes too large, employee
performance suffers because supervisors no longer have the times to provide the
necessary leadership and support.

Chapter –5

FINANCIAL MANAGEMENT
 39

Financial Planning Process:

Planning involves selecting missions and objectives and the actions to
achieve them, it requires decision making. Alita BD Ltd. has also a strong
financial planning process in which the authority has to formulate these plans.
Most of the time top-level management makes decisions.

Financial Statement:
Financial statement is a statement that contains the financial transactions
for a specified time period. Every company has various kinds of financial
statements but the company did not provide any kind of financial statement
because of their financial secrecy.

CEO of the company Mr. Yeh, is engaged in international bicycles business for
last two decades and has wide experience in every aspect of bicycles business
and has gained reputation as a supplier of quality bicycles at competitive prices.
As a result Alita could easily penetrate into European market within commencing
 40

commercial production through major European importers like E.Reece & Moore
& Large Co. Ltd. and continue to increase its share in the world market.

Development of the company was seriously effected by the outcome of

unfortunate prolonged political instability in 1996, resulting in difficulties in
bringing in raw materials and its ability to supply on time was badly affected.
However due to good relations with the customers and by improved planning in
procurement and logistics, the company regained reputation within a short time.

Financial position of the companies as per latest audited accounts as on June 30, 2013 of
million (Taka) is as follows:

Particulars Alita Ace Combined

Sales 244 91 335

Gross Profit 24 31 55

Operating Profit 6 26 32

Retained Earnings (14) 34 20

Fixed Assets 61 39 100

Net Assets 4 40 44
At the end of the 1st quarter of the current financial year on September 30,2014 the
position is as follows:

Particulars Alita Ace Combined

Sales 158 66 224

Gross Profit 13 26 39

Operating Profit 10 25 35

Retained Earnings (7) 57 50

Fixed Assets 61 40 101

Net Assets 9 62 71
 41

Associates companies:

Shareholders of the companies also promoted and own whole share capital of
the following companies

Name of the Company : Akoko Sdn. Bhd.

Address : LotNo.6695,Batu7,Jalan Kebun,

42450 Klang, Selangor, Malaysia

Activity : Bicycles manufacturing

Banker : Public Bank Berhad

Ground Floor

28-32, Persiaran Sultan Ibrahim

41300 Klang, Selangor

Darul Ehsan, Malayasia

Name of the Company : Jen Min Mfg. Co. Ltd

Address : Yu Shih Industrial Zone

33, Kung Chiu Road,

Tachia, Taichung

Taiwan

Activity : Trading in Bicycles parts.

Banker : The First Commercial Bank

Taichung Branch, Taiwan

 42

Capital and Capital Structure:

Foreign investment is the main source of capital of the company. The

capital structure normally follows paid up capital. Since the company is always
export oriented so the source of capital must be the foreign investment.

Findings:

The company does not provide any type of financial statement due to their
business secrecy.

Market Share:

ALITA (BD) LIMITED does not enter share market

Short term and Long term Financing:

Most of the company use short term financing to meet their financial
requirements, while long-term (long term dept and equity) is used to meet long-
term capital requirement. There are four basic source of short term financing.

1. Account payable
2. Bank loan
3. Commercial paper
4. Accruals

ALITA (BD) LIMITED always uses the short term finance from company’s
own sources. Long term finance is basically supplied by foreign investment.
 43

Chapter – 6

Analysis of problems
 44

Problems in Alita

To identify the major problems in production department we have to conduct a

SWOT Analysis, which refers identification of a company’s internal strengths
and weakness. It also identify a company’s external opportunities
and threats. Here is the SWOT analysis.

SWOT ANALYSIS:

SWOT Analysis holds for the analysis of

 Strengths
 Weaknesses
 Opportunities
 Threats

STRENGTHS:

1. It has skilled human resources.

2. It can collect required raw materials easily.
3. It has updated machineries.
4. The quality control system of the company is updated.
5. The company is able to supply goods to the customer as the desire of
customer.
6. It has access production capability.
7. It has a reputation of good export service.
8. The company is competence in MIS.
9. Its inventory management is good.
10. It possesses a strong financial management.
 45

WEAKNESSES:

1. The level of job satisfaction in the factory is very low.

2. The working condition of the factory cannot be termed as suitable.
3. Power supply is not smooth.
4. High manufacturing cost.
5. Poor material management.
6. Inadequate skilled human resources.
7. As a modern group of companies has no sound administrative policy to
maintain all its operations and authority is not always delegated and reviewed.
8. Alita has no clear cut way to coordinate among its related companies.
9. Minimum level of promotional activities is undertaken here.
10. Alita has no separate marketing department.

Opportunities:

1. Withdrawal of quota system – which has created an opportunity to

import more products in America.
1. Cost of differentiation advantage – which may help to reduce over
all cost of production.
2. Vertical integration – Forward / Backward; that may help to get raw
material at cheaper price.
3. One stop service facility of Chittagong port authority – that may
ensure availability of row materials at least time.
4. Alita can expand its production capacity if demand necessitates
that.
5. The company can use the image of its M.D. in creating new market.
6. It has still enough export possibilities.
 46

THREATS:

1. It is competing with the existing reputed companies.

2. Increasing foreign competition
3. Political instability.
4. Traffic jam in the city roads.
5. Hazard and corruption in Chittagong port.
6. Fluctuation of price of raw materials.
7. High conspiracy in the administration of the country.
 47

Chapter - 7

Recommendations & Suggestions

 48

Recommendations

In the wake of mountainous challenges for producing goods we need to

formulate a well-planned policy to face it. The manufacturing challenges may be
faced by devising well-thought strategic moves. The following strategies may
help in overcoming growing manufacturing challenges.

Developing strong strategic production planning:

The company has to develop a strong strategic production planning which will
ensure available out put at a right time within optimal cost. For this purpose the
company can follow the EOQ in purchasing raw materials. The company can
also predict about the necessary output after analyzing the previous demand of
output through out the year.

Introduce up dated mechanical technology:

As a member of world market the company is facing competition from the firms of
world wide. The customers of world market always emphasis on quality and then
never compromise with it. So the company must ensure such kind of quality that
is accepted to customer of world market at a reasonable cost comparing with
world competitors. For this purpose the company must have to install the
updated machineries.

Ensure efficiency of workshop technicians:

The company sometimes fails to provide quality goods as customers expected.
For this condition lab technicians are liable to a grate extend. Some times they
fail to provide out put as customers expected quality though the production
facilities are able to produce such kind of out put. So the company should recruit
 49

more competence technicians in workshop. The company also can provide an

opportunity to the present technicians to gather required training.

Develop job satisfaction of workers and officers:

The company should take attempt to develop the job satisfaction among the
worker and officers. For this purpose the company can provide them more
incentives. But what is more effective in developing satisfaction in case of weak
position of the company is informing. The company should inform the workers
about the actual condition of the organization.

Recruit adequate human sources:

Though the company has a group of skilled worker they are not sufficient at
present condition. So the company should recruit adequate human resource thus
it would be able to utilize it full capacity.

Develop high level of manufacturing skills:

Manufacturing skills must be developed to a desired level among the executives

through scientific manufacturing Seduction and time- befitting training to face the
manufacturing challenges properly.

Emphasize on quality and design in products:

Firms are in need of producing goods at the desired quality level in keeping with
international standards to serve the domestic & international buyers effectively.

Stress on cost economy:

 50

To survive and thrive in highly competitive environment, the ability to produce

goods or services at reasonable competitive cost must be attained. The
application of value analysis, computerization in operations and optimal resource
allocation may help achieve cost economy by the firm.

Develop sound marketing infrastructure:

An efficient infrastructure must be developed to ensure efficient marketing of
products or services to the target market. The development of efficient
transportation, tale-communication and port facilities may facilitate smooth
marketing as per the demand of time.

Sound R & D activities:

Sound R & D may enable the firms to bring out time-befitting products & services.
The product obsolescence may be largely reduced and better consumer
satisfaction may be achieved through well-developed R & D activities in a firm.

Search for exploring new markets:

Recent trend in global politics is indicating to the necessity of diversified market

for our textile products reducing over-dependence on the USA market. So,
company should launch a market-searching program in Japan, Australia, Russia,
East Europe, Nordic countries, Mid Asia Africa and Middle East to take an upper
hand in meeting their demand for related products.

IT, research and lobbying:

The company should formulate a cell for research for market of its product
employing experts. This cell will accumulate necessary information and prepare
recommendations derived out of its research works. The top level management
should take steps to implement these recommendations the lobbyist firms in
foreign countries like the USA.
51
 52

CONCLUSION
Alita was set up in 1995 as an export-oriented facility focusing exclusively on the
European market. Last year, the company supplied one of the UK based Falcon
Group subsidiaries 30,000 bikes. With the second unit coming up, we want to
intensify our focus on the European market. 2009 was a difficult year, but
fortunately the market is picking up now.

Meanwhile, Alita is also stepping up the production of its mid-end range.

Currently, offering bikes in the € 36 - 40 range and planning to shift our focus to
alloy bikes in the price range of € 54 - 75. Owned by a Malaysian group, Alita
currently manufactures around 110,000 to 120,000 units annually at its
Chittagong based plant.

Currently some 15 companies in Bangladesh, employing over 3,000 workers, are

manufacturing and assembling bicycles for export. Some of the world’s leading
companies including Britain’s Raleigh, PCM, Motor and Sports, Aldi the
Netherlands, Bachtenkirch Interbike of Germany, M&F De Scheemaeker and
Formula Cycling of Belgium are importing bicycles from Bangladesh. The small
country on the eastern border of India, manufactures all bike categories and has
an export capacity of 2 million units per year.

According to Export Promotion Bureau (EPB) of Bangladesh, the country’s

bicycle export value reached € 25.6 million between July 2012 and June 2013, a
growth of 61.15% compared with the same period of 2011-2012.
 53

In the view of management practices of ALITA (BD) LIMITED we are also

provided with various informations as necessary of sound management. In the
following discussion, we have observed that the company usually practices the
sound management in their working environment. And we also observed that the
company always very much conscious about the human rights. The code of
conducts of the company which were mentioned earlier indicates that clearly. The
production,marketing,human resource management department of the company
is also strength in view of the employee and customer concern.

However, this tour has helped me to learn a lot of practical knowledge

about the management and financial practices of the reputed multinational
company. Finally, I would like to render gratitude to my honorable teacher and
supervisor Prof. Dr. ZAHANGIR ALAM, and Prof.S.M.Nasrul Quadir
Department of Finance and Banking, University of Chittagong, for arranging this
program and support to made this tour report.

BIBLIOGRAPHY
 54

1. David, A. Decenzo, Stephen P. Robin Personnel / Human Resource

Management.
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Hall. 1964.
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1964.
5. Yoder, Dle, Personnel management and Industrial Relations: New Delhi ;
Printice Hall India 1972.
6. Flippo, Edwin B, Personnel Management, New York; Megraw Hill Bllk
Company 1984.
7. Haque S,A, Personnel Management Dhaka: Kalpona publishers 1982.
8. Pigors Pound C.A Myers, Personnel Administration: A point of new and a
methop, New York; Magraw Hill Bllk company, 1956.
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11. Philip Kotler, Marketing Management, 11th edition (2003). Printice Hall
Englewood cliffs N.J USA.

THE END