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ZABER & ZUBAIR FABRICS LIMITED

Submitted To: Submitted By:

Date of Submission:

0
LETTER OF ACKNOWLEDGEMENT

21 August, 2019

Shahid Hossain

Senior Lecturer

Department of Management

North South University

Bashundhara, Dhaka-1229

Dear Sir,

We are deeply grateful to our MGT212 faculty, Mr. Shahid Hossain, for giving us this project
and for his constant guidance, support and patience. He has been an invaluable source of
knowledge and has certainly helped us inspire many of the ideas expressed in this report. It
would not be possible without his wonderful teaching and constant support. We express our
heart-felt gratitude towards the administration of Zaber & Zubair Fabrics Limited. Special
thanks go to Mr. Md. Abdul Quddus, General Manager of accounts section, for providing us
with necessary information regarding this report. All mistakes that remain are ours.

Sincerely

NAME SIGNATURE
IFTEKHAR JAHAN SHIFAT
MD. RIAZ UDDIN
AYAZ MOHAMMAD ABRAR TAMIM
MAHIM IZTIHAD MOZUMDER
ZAHIDUL ISLAM

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TABLE OF CONTENTS

Letter of acknowledgement 1
Table of contents 2
Mission statement 3
Executive summary 4
Officers 6
Organogram 7
Situational analysis 8
External factors 8
Internal factors 11
SWOT analysis 13
Strength 14
Weakness 15
Opportunities 15
Threats 16
Objectives 18
Management issues 20
Organizational structure 20
Departments 21
Leadership theories 23
Recommendation 25
Conclusion 25
Bibliography 26
Appendix 28
Photos 29

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MISSION STATEMENT

Our mission is to be the leading and ever-changing manufacturer in the home-textile industry,
prioritizing the satisfaction of our customers. We are committed to build a cost-effective
production system while maintaining product that offers value for money. Our mission is to
contribute to our country as we perform our moral obligations to our society, our
environment and our laws of the land.

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EXECUTIVE SUMMARY

Zaber & Zubair Fabrics Limited is the pioneer in home textile sector, under the country’s
biggest vertically integrated group, Noman Group of Industries. Zaber & Zubair was
incorporated in the year 1997, with an aim to grow up as an internationally recognized home
textile manufacturing company, by fulfilling the requirements of the target market and by
achieving customer satisfaction. The company started its commercial production from March,
2000, under the guidance and supervision of the chairman of Noman Group of Industries, Mr.
Md. Nurul Islam. At present, the company is the country’s highest exporter for the 10 th
consecutive financial years. The factory is located at Tongi, Gazipur, which is near to Dhaka,
the capital city of Bangladesh. The company had invested around USD 800 million to set up
the state-of-the-art machineries in order to meet the challenge of the 21st century textile
world. (Zaber & Zubair, 2019)

What started with an investment of USD 800 million, the company of Zaber & Zubair took
the role of delivering home textile all over the world 18 years ago and till now; the company
has crossed over USD 2.5 billion of exports till 2018. The company has an annual turnover
worth USD 1 billion. And this revenue is expected to increase in the coming years.
(ZABER& ZUBAIR FABRICS LIMITED, n.d pp.7-8)

Zaber & Zubair is the flagship unit of Noman Group of Industries, the country’s largest
vertically integrated group. Zaber & Zubair contributes most to the group’s annual revenue.
In the year 2008, the total revenue of Noman group was equivalent to USD 762.5. The
revenue increased in the year 2009, and it stood to USD 812.5 million. Noman Group
increased its revenue by USD 56.3 million in the year 2011 and in the year 2012; it stood to
USD 937.5 million. The financial performance of the whole company is really satisfactory
amidst the slow market and Zaber and Zubair is expected to contribute its contribution to the
revenue of the group as per business trends. (SlideShare, 2019)

Being one of the top manufacturer of home textile products in the world, the company has a
daily capacity of producing about 4,00,000 meters of finished fabrics or 1,00,000 sets of
various home textile products including bed linens, window furnishings, table and kitchen
linen per day. Other products include apparels such as shirt, pant, pullover, shorts etc. Zaber
and Zubair is not only concerned about its export and financial performance but also pays
attention towards activities regarding social and environmental welfare. A full fledge medical
center is open for all the family members of workers, where medication facility is free of

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cost. Majority of the work force are women. Women workers enjoy facilities during
pregnancy and maternal leave. The company funds many non-government schools in
Chattogram. The company always comes forward with aid in terms of any natural disaster in
the country. The company signed an agreement with Dutch-Bangla Bank Limited, to provide
ATM card for all employees. In the future, the company has a goal to become the largest
home textile manufacturer in the world with zero carbon emission. (ZABER& ZUBAIR
FABRICS LIMITEDn.d, pp.1-26)

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OFFICERS

NAME POSITION

Md. Nurul Islam Chairman

A.S.M. Rafiqul Islam Managing Director

Mohammad Shahidullah Chowdhury Executive Director

Mohammad Abdullah Zaber Deputy Managing Director

Mohammad Abdullah Zubair Deputy Managing Director

(Md. Abdul Quddus, interview, July 29, 2019)

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ORGANOGRAM

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SITUATIONAL ANALYSIS

Situational analysis means a process that manager use to analyze an organization’s internal
and external environment to understand the organization’s capabilities, customers, economic,
social and business environment. (American Marketing Association, 2008)

Situational analysis helps us to know an organization’s current position, for which managers
can take proper steps or make the proper planning for an organization according to situational
analysis.

External and internal factors of Zaber & Zubair Fabrics Limited are as follows:

External Factors

External factor is the combination of all the factors or influencers that can affect a business
from outside. These may include customers, competitors, suppliers, economic factors,
political factors etc. (BusinessDictionary, 2019)

Zaber & Zubair have outer factors that can affect the business. Their effect can be both
positive and negative for the firm. A company cannot control its outer factors. The company
should adapt and improvise to stay efficient.

 Customers:
Customers are the individuals or business entities that buy goods or services from a shop or
business. Customers play a vital role towards an organization because the company creates
value for the customers in the form of products and services. And the success and failure of a
business depends on its customers.
Zaber & Zubair is 100% export-oriented textile factory. Customers of Z&Z include some of
the world famous retailers such as Wal-Mart, H&M, IKEA, Disney, M&S, Nitori and so on
and so forth. Sometimes, the customers buy the ready-made products directly from the
factory and sometimes they give customized order to the R&D team and make the products
according to their wants and needs. The success of a business completely depends on the
satisfaction of its customers. Dissatisfaction of the customers can result in complete failure
for the business. So, customers play a vital role as an external factor towards the activities of
Zaber & Zubair Fabrics Limited.

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 Competitors:
Whenever an individual or an organization is engaged in commercial or economic
competition with another, they are known as competitors. Competitors are an important
external factor as they affect the business directly and indirectly. In recent years, the number
of home textiles and garments industry is on the rise. Cheap labor cost, Foreign Direct
Investments are the main reasons for this rise. Some of the major competitors of Zaber &
Zubair are Simco Spinning & Textiles Limited, Square Fashion Limited, Hameem Group,
Opex & Sinha Textile Group and Epyllion Group. Competitors directly and indirectly affect
the function of the company in terms of pricing, products, export.The company always
notices what its competitors are doing and plans their functions accordingly.

 Suppliers:
A supplier is a person or business entity that provides a product or service to another entity.
The role of a supplier in a business is to provide high-quality products from a manufacturer at
a good price to a distributor or retailer for resale. (Oberlo, 2019)
A good supplier is a competitive advantage for a company. Zaber & Zubair is a sister
concern of Noman Group of Industries, which the country’s largest vertically integrated
group. The group hosts 32 companies under its belt. The majority of the supplies for Zaber &
Zubair come from these subsidiaries of Noman Group. Some other suppliers are YKK
Bangladesh Ltd, Montrims Ltd, and Ningbo MH Industry Ltd.

 Economic factors:
Economic factors are the factors of economy that affect a business and include interest rates,
tax rates, law, policies, wages, and governmental activities.(WallStreetMojo, 2019)
The economy has a huge effect on the functions of the company. For instance, if the labor
cost goes up, the production cost of Zaber & Zubair will increase. If the government brings
changes in the economic policy of the country, the company has to adapt to that change.
Otherwise, the company will suffer. An emerging economy is positive for the company. On
the contrary, a declining economy is not profitable for the company.

 Political factors:
Political factors are those variables which are related to the actions of government and
political situation in the location of the business. (BusinessDictionary, 2019)

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Zaber & Zubair always maintains good relationship with the political parties of the country.
Sometimes, the company faces difficulty because of the political instability in the country.
Very often, the company cannot deliver products on time because of protest, strikes etc. A
stable political condition is a must to achieve maximum profitability for the company.

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Internal Factors

The elements which are present inside the organization and that can affect or can be affected
with the choices; activities and decision of the organization are defined as internal factors.It
encircles the climate, culture, machines/equipment, work and work processes, members,
management and management practices. (BusinessJargons, 2019)

Major internal factors of Zaber & Zubair Fabrics Limited are listed below:

 Levels of Management:
The term “Levels of Management” refers to a line of various managerial positions in an
organization. It is an important part of an organization that maintains productivity and
performance. The size of management increases with the increase of business and the human
resource.
There are mainly three levels of management in the company. They are as follows:
1. Strategic Level of Management
2. Technical Level of Management
3. Operational Level of Management

Strategic Level: Zaber & Zubair Fabrics Limited is controlled by its board of directors and
the chairman. The Managing Director, Executive Director and the 4 Deputy Managing
Directors are included in this level. They usually take all major decisions such for the
company. They are responsible for controlling and overseeing the entire organization. Every
month, a board meeting is held with the heads of every department to discuss about the major
issues and solve problems. The Managing Director is responsible for leading all the head of
departments.

Technical Level: Zaber & Zubair has many departments such as Accounts, HR, Cost &
Inventory, and Marketing etc. The head of these departments are known as technical level
managers. Their technical skill is narrowly focused in a particular area. They usually get
order from strategic level of management and get the work done. They analyze their
department activities and take actions accordingly.

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Operational Level: Managers of this level of management are usually the link between the
workers and the mid-level management. They check and investigate if the workers are doing
their work properly or not. They are known as supervisors, floor managers, team leaders, shift
managers. Zaber & Zubair has sufficient operational managers who work efficiently and
increase the productivity of the workers.

 Products& Services:
Zaber & Zubair is a 100% export oriented company and has a variety of home textile
products such as comforter, pillow cover, bed linen, curtain, table cloth, aprons, towels etc.
The company is also producing apparels such as shirt, pant, pullover, gown shorts etc. Z&Z is
always trying to bring out new products for the market in the future.

 Human Resource Department:


The factory of Zaber & Zubair is the workplace of nearly 8,000 people. Human Resource
department oversees the effective management of this huge workforce. The department works
really hard to increase the productivity of the workers through training, exercise etc. The
department evaluates the workers regularly and tries to maintain their productivity
accordingly. Thus, productive workers increase the efficiency of the company.

 Organizational Culture:
Organizational Culture is a group of internal values and behaviors in an organization. It
includes experiences, ways of thinking, beliefs and future expectations. It is also intuitive,
with repetitive habits and emotional responses. We also call it Corporate Culture. (Market
Business News, 2019)
Zaber & Zubair is a bureaucratic organization. Decision making is centralized and the works
are specialized. The workers follow a specific set of rules and there is an impersonal
relationship between managers and workers. Communication is one-way and downward only.
Creativity of individuals maybe neglected. The management gives awards for excellent
performers. Departments arrange sports competition, picnic, and tour annually for the
entertainment of the employees.

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SWOT ANALYSIS

SWOT stands for strengths, weaknesses, opportunities and threats. It is a frame work or a
method to evaluate a company’s competitive position and develop strategic planning.
(INVESTOPEDIA, 2019)

SWOT analysis assesses internal and external factors of a company. In SWOT, strengths and
weaknesses are internal factors, threats and opportunities are external factors. Strengths
include internal capabilities, resources and positive situational factors which may help a
company to achieve their objectives. Weaknesses include company’s internal limitations and
negative situations which can hamper a company’s performance. Opportunities are favorable
factorsor trends in the external environment that a company can use as advantages. Threats
are external factors which are unfavorable and may give challenges to a company. SWOT can
help to achieve their goals.(Kotler. G 16th)

SWOT Analysis of Zaber & Zubair Fabrics Limited is made below:

STRENGTH WEAKNESS

 Brand image  Obsolete machineries


 Labor cost
 Manufacturing methods
 Expert managers
 Research and Development

OPPORTUNITIES THREATS

 Apparel industries  Political instability


 Demand  Infrastructure
 Expansion of market  Competition

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STRENGTH

 Brand Image:
As Zaber & Zubair is a 100% export oriented company; it has a strong brand image all over
the world. Zaber & Zubair is the third largest home textile company in the entire world and
the largest in South Asia. Some of the buyers of this company include- H&M, Wal-Mart,
IKEA, M&S, Verbaduet, Nitori, Disney, K Mart, and Ekkleboom and so on and so forth.(Mr.
Abdul Quddus, interview, July 29, 2019)

Since the company came into being, it has been validated by lot of third party reputed
institutions, recognized international bodies and customer representatives. Some notable
certifications are BRC Global Standard Customer Product, BSCI, SMETA Audit/Sedex
Member, UKAS QUALITY MANAGEMENT, ISO 9001:2015, ISO 14001:2004 and so on.
Many standards are under implementation such as WRAP, GSV (Global Security
Verification), Step by oeko-tex etc. (ZABER& ZUBAIR FABRICS LIMITED n.d, pp.11-12)

 Labor cost:
Bangladesh is famous for its cheap labor market.The edge gives the Zaber & Zubair a definite
competitive advantage among its peers in the global export markets. Z&Z utilizes this low
labor cost to decrease the production cost attaining more efficiency. They do not have to
spend lot money on workers. It is a very effective and crucial strength for this company
which helps them to make profit very easily.
 Expert managers:
For the last 18 years, the mangers of this company worked hard with delegation of authority.
And because of the true leadership of the management, Zaber & Zubair has turned into a
really successful organization. The managers are selected after many examinations. And they
are expert in what they do. The managers are ambitious and really hardworking and always
striving for the betterment of the company.

 Research and Development: Zaber and Zubair boasts of having a state-of-the-art R&D
team with all the modern facilities. The team always looks out for what the buyers or
customers want or what their need is. Then, by understanding what their customers want,
they design the product accordingly. R&D is one of the major strength for this company.

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WEAKNESSES:

Obsolete machineries:
Although Zaber & Zubair had invested a huge amount of money to build the state-of-the-art
factory during the initial days, but now-a-days many of the machineries of thecompany
became obsolete due to the ever-evolving technology. The company totally depends on old
and traditional machineries and technologies, which is a great weakness for the company.
Their goals also get hampered for not having advanced technology and machineries. The
company may not be able to reach its target production in the future because of this great
internal problem.
Manufacturing methods:
Although Zaber & Zubair have a daily capacity of producing 4,00,000 meters of finished
fabrics or 1,00,000 sets of various home textile products, the company uses old and out-dated
manufacturing methods for the production. This is mainly due to the some traditional
machineries and lack of creativity of the production engineers. If the company adopts modern
manufacturing methods with the help of modern machineries, the company can boost its
production.

OPPORTUNITIES

Apparel industries:
Z&Z is famous to buyers all over the world for home textile and apparels. It is a great
opportunity for Z&Z to seize the apparel market of the world because apparel exporters like
China, Hong Kong, Taiwan are decreasing their investment in apparel sector. As these
exporters are not investing much on apparel sector, if the company invests more in this sector
with a view to meeting the apparel demand all over the world, it might get the company more
profit and can get more market share.

Demand:
Initially, the demand of home textiles products was seen only in the developed countries like
USA, Canada, UK, Germany and other European countries. Day by day, it is becoming
popular all over the world. The company should increase their production based on the
demand of their products and gain more profit.

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Expansion of market:
The present market of Zaber and Zubair is Europe and North America. As the demand for
home textiles and apparels is gradually increasing, there is opportunity for the company to
expand their market to Russia, Japan, Australia and other developing countries.

THREATS

Political instability:
Bangladesh sometimes faces political instability. This is a threat for the company’s economy
and performance. For political instability, company may not give the product to the buyers on
time. Another problem is transportation. Strike is a common obstacle for the shipments that
has to be transported. Shipments cannot be made and for this, the company may suffer
financially. Sometimes the products could get ruined by the strikers; company has to face a
huge amount of loss. The customers and buyers may lose their trust for the company. So
political instability is one of the major threats for this company. Political instability is a
common phenomenon in Bangladesh. There is a positive relationship between political
stability and export of any country. If the country is politically stable, the volume of export
increases, buyers come from all over the world. But, if the country is not politically stable.
The export of our country goes down. So political instability is becoming a threat to the
company

Infrastructure:
Infrastructure of the country is one of the factors that have a great impact upon the company.
Zaber & Zubair is located at Tongi, Gazipur, which is far away from its shipping point that is
Chittagong port. It takes a lot of time and money for the finished goods to reach the port from
the factory. Sometimes, the buyers or customers may lose interest to come to this region for
unsuitable conditions. Because of the weak infrastructure of this region, the roads are
sometimes blocked. Sometimes, intense rainfall causes flooding which creates a problem in
the delivery system. Extreme weather conditions may reduce the productivity and efficiency
of the workers. In the future, expansion of the factory might turn into a problem because
Tongi, Gazipur is very congested. So, infrastructure may create problem for the factory.

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Competition:
In the present day, entrepreneurs are showing more interest and are keen to invest in the
home textile industry. Big companies are extending their manufacturing plants for home
textiles. Low labor cost and the increasing demand of home textile products throughout the
globe has seen the rise in the number of home textiles companies in the country. And in the
future this will continue to increase. The company may lose its market share due to the
increased number of competitors. The company will have to spend more on marketing
strategies to attract the attention of the buyers. Therefore, increasing competition is a threat
for Zaber & Zubair Fabrics Limited.

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OBJECTIVES

Objective-1: By the end of 2020, we want to expand our market to Russia, japan and
Australia.

Strategy: Our current markets are the buyers from North America and Europe. We want to
expand our market to Russia, Japan and Australia. To achieve this objective, our marketing
department has to play a vital role in attracting buyers and customers from these countries.
Different marketing plans should be devised for these countries according to the needs of the
buyers. Initially, we will export 15% of our entire production to these countries, 5% in each
country. Then, when the demand goes up, we start producing and exporting more in quantity.

Objective-2: By the end of 2021, we want to increase our per-day production capability by
15%.

Strategy: At present, Zaber & Zubair has a capability of producing 4,00,000 meters of
finished fabrics or 1,00,000 sets of various home textile products. We plan to increase this
capability to 4,60,000 meters of finished fabrics of finished fabrics or 1,15,000 sets of various
home textile products per day. For the implementation, we need additional machineries and
supplies. The company will invest USD 300 million for machineries and supplies. The
engineering department will look after the installation of new machineries. Cost and
Inventory department will order supplies accordingly. Under the supervision of production
and operation department, we plan to increase this capability by 5% each year.

Objective-3:By the end of 2022, we want to increase our workforce by 12.5%.

Strategy: Zaber & Zubair is the workplace of nearly 8,000 people. By the end of 2022, we
want to increase the number of workforce to 9,000 people. Since, we want to expand our
company, we need additional workforce. We will create employment for almost 1,000 people
in quota system. 50% of the additional workforce will consist of physically disabled people
and 50% will be people from the minority groups. HR & Admin will recruit people as per the
quota. And train the new recruits up and thendivide the jobs according to the capability of the
workers.400 workers will be recruited by 2020 and the rest 600 will be recruited by 2022
maintaining the specific quota.

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Objective-4: By the end of 2023, we want to reduce our per year carbon emission from 4,000
tons to 2,000 tons.

Strategy: Zaber & Zubair is not only concerned about its financial aspects but also concerned
about the environment. Annually, the company produces approximately 4,000 tons of carbon
and other wastes. We will bring it down to 2,000 tons. Every year we will reduce the carbon
emissions by 500 tons.. The company will spend a total of USD 100 million for bringing in
Effluent plants. We have already 3 Effluent Plants. We will bring 4 more plants, one in every
year. 4 R’s Program (Re-use, Reduce, Recycle and Recovery) is already under-way
throughout our company.

Objective-5: By the end of 2023, we want to be the largest home textile manufacturing
company in the world

Strategy: Zaber & Zubair is currently the largest home textile manufacturer in South Asia
and third largest home textile manufacturer in the world. Our objective is to become the
largest home textile manufacturer in the world in 5 years’ time. The overall investment for
this entire objective is USD 600 million. Firstly, we want to increase the area of our factory,
which covers 350 acres of land, by more 50 acres. We will bring in state-of-the-art
machineries. We plan to increase our per day production as well. Our current yearly turnover
is USD 1 billion. Our target is to achieve a yearly turnover of USD 2.5 billion by 2024. We
will increase it by USD 0.5 billion every year. We will capture the markets in Russia, Japan,
Australia and other middle-east countries by the end of 2024.

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MANAGEMENT ISSUES

Organizational Structure:

Zaber & Zubair Fabrics Limited follows bureaucratic organizational structure. Bureaucracy,
specific form of organization defined by complexity, division of labor, permanence,
professional management, hierarchical coordination and control, strict chain of command,
and legal authority. It is distinguished from informal and collegial organizations. In its ideal
form, bureaucracy is impersonal and rational and based on rules rather than ties of kinship,
friendship, or patrimonial or charismatic authority. Bureaucratic organization can be found in
both public and private institutions. (Encyclopaedia Britannica, 2019)

Since Zaber & Zubair is a bureaucratic organization, all the decision comes from the head of
the strategic level of the company that is the chairman with the advice of managing director
and deputy managing directors. This decision is passed to the mid-level managers who are
head of the departments of the company. Then, the operational managers get information
from the mid-level managers. The operational managers organize the work and divide the
work to factory workers and other operational workers. Communication takes quite a long
time as decision is passed from the top to the bottom. Sometimes, managers and employees
cannot take decisions effectively regarding a problem. Employees are not allowed to have
interpersonal or departmental communication to discuss about any matter. As a result,
creativity and ideas and not expressed in this organization.

Bureaucracy is characterized by a large amount of red tape, paperwork, many desks, certain
office culture and slow bureaucratic communication due to its many hierarchical layers. This
is the system’s biggest disadvantage of a bureaucratic organization. It is also unfortunate that
employees remain fairly distanced from each other and the organization, making them less
loyal. Bureaucracy is also extremely dependent on regulatory and policy compliance. This
restricts employees to come up with innovative ideas, making them feel like just a number
instead of an individual. (Toolshero, 2019)

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Departments:

 Administration and HR Compliance Department :


Administration department is backbone of an organization. An effective administrator is an
asset to an organization. He or she is the link between an organization's various departments
and ensures the smooth flow of information from one part to the other. Thus without an
effective administration, an organization would not run professionally and smoothly.(Quora,
2019)
HR (Human Resources) compliance refers to the process of defining both group and
individual behaviors in an effort to ensure that they adhere to a company's applicable policies
and laws. (Upcounsel, 2019)
This department of Zaber & Zubair carries out the following activities:
 Prepare to check salary.
 Keep employee service file up-to-date.
 Evaluate employee performance.
 Provide motivation to the workers.
 Meet up the demand of environment and social compliance.
 Handle disciplinary actions.
 Recruit new employees and provide training to the employees.

 Marketing Department :
A marketing department promotes your business and drives sales of its products or services.
It provides the necessary research to identify your target customers and other audiences.
(Chron, 2019)
The marketing department of Zaber & Zubair plays a vital role in promoting the business and
the mission to its customers and buyers all over the world. Marketing department’s job is to
reach out to its prospects, customers, investors and the community while creating an
overreaching image that represents Zaber & Zubair in positive light.
The activities of the marketing department are as follows:
 Track the current trend and evaluate competitors.
 Planning and producing marketing and promotional materials.
 Conducting customer and market research.
 Overseeing outside vendors and agencies.

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 IT Department:
An IT organization (information technology organization) is the department within a
company that is charged with establishing, monitoring and maintaining information
technology systems and services. (TechTarget, 2019)
Zaber & Zubair has a very efficient IT department which a brought a huge change in the
activities of the company. The department oversees all the computers, servers, networks,
telephones, mobiles etc. The department also maintains the official webpage of the company.
The department maintains all the technological issues of the company.Even the smallest
works are being automated. For instance, the IT department automated the attendance of the
employees in the company. This helps the management to keep record of the working hours
of the employees.Transactions, salaries of employee are automated. A head software engineer
looks over the whole department.

 Inventory Department:
Inventory management is the supervision of non-capitalized assets (inventory) and stock
items. A component of supply chain management, inventory management supervises the flow
of goods from manufacturers to warehouses and from these facilities to point of sale.
(TechTarget, 2019)
Zaber & Zubair is one of the largest exporters of home-textile products in the country. To
produce such a huge quantity of products, the company needs a lot of supplies, raw materials
from its suppliers. Inventory department keeps track of the raw materials, supplies. Inventory
department brings efficiency to the company by maintaining an optimal size of the inventory,
by ordering supplies on time. Smooth functioning of the inventory department helps in
producing the goods in time. Thus, satisfaction of the customer is achieved.

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Leadership Theories:
Managers of Zaber & Zubair Fabrics Limited can use the following leadership theories:
1. Path-Goal Theory
2. Michigan Studies of Leadership

 Path-Goal Theory:
Management of Zaber & Zubair can adopt the Path-Goal Theory of Leadership. This theory
describes how a leader can motivate his or her followers to achieve group and organizational
goal and the kind of behavior leaders can engage to motivate followers. Motivation is the
main key in this theory. This leadership theory assumes that employees will be motivated if
employees think they can do their work and have an expected outcome. In such a big
organization, there are many departments with different jobs and different types of mentality
among the employees. So, a manager has to understand the characteristics of the group or
individual and their capabilities. For instance, how much pressure can one take, how much
challenge can one take, if the individual needs any preference for the tasks or needs for
affiliation or desire for control etc. Then, a leader should identify the characteristic of the job.
Because, to know whether an individual can manage a work, he has to know about the work
first, so that a leader can choose his leadership behavior to motivate them. A leader can
choose different types behavior based on employees characteristics and job characteristics
such as directive, supportive, participative and achievement oriented. (Leadership and
Innovation, 2010)

 Michigan Studies of Leadership:


The Michigan Leadership Studies were the well-known series of leadership studies that
commenced at the University of Michigan in the 1950s, with the objective of identifying the
principles and types of leadership styles that led to greater productivity and enhanced job
satisfaction among workers.The studies identified two broad leadership styles – an employee
orientation and a production orientation. They also identified three critical characteristics of
effective leaders – task-oriented behavior, relationship-oriented behavior and participative
leadership. (Wikipedia, 2019)
Zaber & Zubair can follow the Michigan Studies of Leadership. As Zaber & Zubair has many
departments, the works of these departments are different. The managers should first
understand the type of work. For instance, for marketing department, leaders should be

23
employee centered, should allow the subordinates to participate so that ideas and creativity
flows in and out. Here, managers communicate closely with the subordinates. Whereas, in the
production sector, the managers should be job-centered to get the jobs done, to achieve the
result. Managers should supervise closely.

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RECOMMENDATION

Zaber & Zubair Fabrics Limited exhibits remarkable performance and has plausible scope to
grow more in the future. Nevertheless, there are some issues that the company must conquer
in order to do so. Here are some recommendations to solve these issues:
 Introduce a more diverse and efficient hiring process to attract more professional
employees.
 Give mandatory modern technological and management skills training to employees
of all levels of the company.
 Make the website of the company up-to-date and more attractive.
 Create an employee satisfaction department to understand the condition of the
employees.

CONCLUSION

In a developing country like Bangladesh, home textile industries play a vital role in the
economic growth of the country. Zaber & Zubair Fabrics Limited is indifferent to this. Zaber
& Zubair is the pioneer of home textiles industries in the country. The company is the
country’s highest exporter for the last 10 th consecutive financial years. It is the largest home
textile industry in South-East Asia. While trying to do their very best in the export business,
the company did and still faces countless obstruction from time to time such as political
unrest, inflation etc. The company is still the pioneer in home textile industry although the
competition is increasing day by day. The company is not only contributing to the economy
of the country but also to the society by creating employment for a large number of people.
The company is also striving hard to be more sustainable and environment friendly. Zaber &
Zubair Fabrics Limited hopes to contribute to the economic growth of the country and
become a zero carbon emission company.

25
BIBILOGRAPHY

Zaber & Zubair,2019. About us. [Online]

Available at: http://znzfashion.com/about-us/

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Encyclopaedia Britannica, 2019. Bureaucracy. [Online]

Available at: https://www.britannica.com/topic/bureaucracy

Toolshero, 2013-2019. Bureaucratic Theory by Max Weber. [Online]

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Quora, 2019. What is the role of administration department in a company? [Online]

26
Available at: https://www.quora.com/What-is-role-of-administration-department-are-in-
company

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Available at: https://en.wikipedia.org/wiki/Michigan_Studies_of_Leadership

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APPENDIX

Financial Performance

28
PHOTOS

With Md. Abdul Quddus, General Manager, Accounts and Md. Mizanur Rahman (FCA),
General Manager, Cost and Inventory.

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Team Scrutinizers

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