Professional Documents
Culture Documents
This paper is prepared based on a case study of garments industry. Mr. Khan
started a garments industry. After running for 5 years, he reached at the break-
even point that is - no profit and no loss. At the same time, he faced some problems
regarding the sustainability of the garments. Here we tried to identify the problems
that faced by Mr. Khan based on the on going garment sectors’ condition of
Bangladesh. According to us, he did not face any budget problem but he faced
performance problem and time problem. After identifying the problems, we tried to
give some recommendations regarding the sustainability of his garments industry
which are discussed here.
18
Flowchart of problems:
18
Problems identification:
18
The problems we have identified so far, are of mainly three types. The problems are
as follows:
1. Performance problems:
18
Garments are facing export and import barriers. In exporting, garments facing high
duty and cota problems. In importing, garments are facing port and customs
problems.
18
1.13 Inefficiency in port management
The Chittagong Port is the most important entry and exit point for trade and
commerce of the country. It is one of the most inefficient and corrupt ports which
seriously hamper the competitiveness of Bangladeshi garment in the world market.
The corruptions are- Frequent work stoppage by different service providers,
transport workers, Excessive dock labor unionism, Politicization of Collective
Bargaining Agents, Direct involvement of powerful local politicians, elite and
musclemen, illegal gratification practices.
2. Time problems:
3. Money Problems:
18
3.1 Fluctuation of international prices
International price fluctuate heavily. As a result, cost of raw materials increases
which ultimately increase the total price.
1. Performance problems:
18
Performance problems and solutions
Effective Communication
Poor communication
Mutual understanding
Labor union
Increasing Competitiveness
High competition
18
For the performance problems showing above, we are giving the following
suggestions:
Effective communication goes both ways- thinking and listening. At first Mr. Khan
has to listen what employees and suppliers are saying, customers or buyers want.
Don’t interrupt and get defensive. Just hear them and reflect back what they’re
saying so they know they are heard. Then Mr. Khan will understand them better and
they’ll be more willing to listen to him.
Foreign Buyer
Try to see from the view point of employees, customer sand suppliers.
Communicate directly with customer and suppliers.
Mr. Khan
Director
Director
18
As messages are passed up or down through the layers of the organization, they
pass through a number of different people who can add, take from, qualify or totally
twist the original message. Mr. Khan has to begin communication with the
directors who receive instruction directly from him. They are then asked to share
this information with their group of front line agents. One way to make sure the
directives or communication that directors pass down actually get to the front-lines
the way he intended is to randomly conduct “round table” discussions. Pull 3-5 front
line agents in for a discussion that is very informal and ask specific questions to get
a feel for the messages Mr. Khan has passed down and to make sure the director is
doing their job.
To overcome fear Mr. Khan must work to develop trust among the employees. Trust
develops when Mr. Khan will do what he says he is going to do - and by doing his
part to help the team succeed.
Mr. Khan has to build trust and not violate the confidentiality of the employees who
are openly and honestly sharing. Again, the key to honest feedback is to create a
trustworthy relationship that employees believe will not come back to hurt them
later.
1.2 Wonderful infrastructural design
To remove this problem Mr. Khan should establish in such type of area where
transportation system is well. Mr. Khan’s garment should have large entrance and
exit way and alternative way to exit in any kind accidents. For fire accident Mr.
Khan’s garment should have enough fire distinguisher. If the garment has large
entrance and exit and enough fire distinguisher then every employee will feel safe
and will do their job with full attention. Governments can also impose some rule
regulation on garments building stricter.
18
The broad quality parameters (ISO 9000 series) have to follow for maintaining the
export quality.
Quality has to be taken care by Mr. Khan, because excuses are not
entertained in international market for negligence for low quality garment
products. So, Mr. Khan has to produce high quality product, use latest design
and technological know- how.
Apart from superior quality of the garment, its pricing, packaging, delivery,
etc has to be also taken care of. Quality needs to be defined in terms of a
particular frame work of cost. So, Mr. Khan needs to follow focus strategy. It
means Mr. Khan has to focus on cost and quality at a time. Mr. Khan should
know to negotiate a premium price after quality assurance is done.
The garment shown in the catalogue should match with the final garment
delivered and the garment quality should match the samples shown during
taking the orders. It is important to perform according to the promises given
to the buyer. Because in international market, quality reassurance is
required at every point.
Proper documentation and high standard labels on the garment are also
important aspects as these things also create good impression.
18
For overcome this type of problem Mr. Khan should hire higher educated persons by
providing high salary. Because they have the ability to give proper instruction to
their workers like- what the buyers want, what quality of work he expect, how the
work should do etc. Secondly, the workers are uneducated. For that they can not
adopt with the new technology. For such kind of problem Mr. Khan needed educated
workers so that they can easily adopt with new technology. On the other hand it is
easy to provide higher training to the educated workers. Mr. Khan should setting a
minimum wages and salary level and pays the salary and wages on time. And
workers should give large space so that they can move easily. It will make the
employee more motivated to their work and more devoted to the management
policies.
18
Efforts should be made to develop new markets, at least in large Asian
countries such as Japan, China and India. This may help Mr. Khan to sustain
his garments growth in the increasingly competitive global market.
Operations are more efficient when employees perform just one task or only
certain aspects of a task in order for that job to be conducted at its highest
level. Continuous efforts should be exerted to reduce the cost of doing
business by increasing productivity.
Better working conditions with reasonable pay may improve the situation to attract
mid to upper-mid level well-educated citizens of the society, which may help
improve the productivity of labor significantly.
18
equipment and ensure workers have the highest level of training. Mr. khan should
use TQM not only achieve the objectives set out in its policy and strategy, but also,
and equally importantly, sustain and build quality. Mr. khan should use TQM focuses
on encouraging a continuous flow of incremental improvements from the bottom of
the organization's hierarchy. It will make production smooth, increase production
quality as well as management quality.
Mr. Khan has to provide flawless machineries to achieve better output. Mr. Khan instead of
going harsh against the workers must try to find out the real causes of low quality products and
time wastage factors if they really want to bring qualitative changes in their products.
Mr. Khan should use a buying agent who can do all sort of job on behalf of
the company and this will be very much handy, once company has enough
experience doing foreign trade then it can do all the procedures itself.
18
• Activate the proposed Asian Development Bank loan project and
modernize Chittagong Port. The approach of the loan is to allow
privatization of some port operations
• Revise the antiquated Shipping Act, procure more equipment, and
construct the proposed new container port
• Banning all kinds of strikes within it
• Special export processing zones have been set up to ensure smooth
functioning of factories for export processing.
1.14 Increasing Competitiveness
For increasing competitiveness Mr. Khan has to keep the cost of production lower
than that of competitors, bring continuous innovation in technology, offering high
quality product at reasonable and take different promotional activates
2. Time problems
Global Recession
Overcoming global recession
18
Recommendation of time problem:
For the time problems showing above, we are giving the following suggestions:
The BGMEA must look into it thoroughly and start thinking from now on
without wasting time regarding how to tackle the situation and keep our
products export on track which accounts for our foreign exchange.
18
material in low cost when others price is high. Company should keep in mind the
following factors to select a supplier whether to home or abroad:
• Purchase price
• Technological capacity
• Distribution costs
• Reliability regarding just-in-time deliveries
• Service by the raw materials producer
• Quick response
18
The proposed structure is:
3. Money problems
18
Recommendation of money problem:
For the money problems showing above, we are giving the following suggestions:
18
When any business organization firstly starts a business, then government do not
charge any tax on that business for first five years. After five years government
charge high corporate tax. To overcome high corporate tax rate Mr. Khan should
maximize the profit because from profit government do not charge any tax. He can
maximize the profit to develop his product quality.
Conclusion
Mr. Khan should continue the project for sustain his business and earn profit. We
think he will overcome all of his problems if he follows our suggested way.
18
Appendix
The own part done by each group members are given in the next page with name
and id.
18