walton bangladesh

Report

on

A study on the variousproducts of Walton

Bangladesh ltd.

Report

on

Walton Bangladesh ltd.

Prepared for

Anika Khurshid

Faculty

College of Business Administration(CBA)

IUBAT- International University of Business Agriculture andtechnology

Submission Date: 30th March, 2013

STUDENT DECLARATION

We the student of BBA, in the college of business administration (CBA) at IUBAT (International University of Business Agriculture and Technology) declaring that this report on the topic WALTON BANGLADESH LTD, has only been prepared for the fulfillment of thecourse of MGT 201 (Management process), it has not been prepared for any other purpose, reward, or presentation.

Name ID Program Section Signature

Shiek Sazzad Hossain

12102401

BBA F

Nusrat Jaman Muna

12102370

BBA F

Rifat Sultana 12102431

BBA F

A.B.M Golam Muktadir

12102392

BBA F

Rehena khatun 12102384

BBA F

Ruksana Akter 12102379

BBA F

Letter of Transmittal:

30thMarch, 2013

Anika Khurshid

Faculty

Colleges of Business Administration

IUBAT- International University of Business Agriculture and Technology

Uttara, Dhaka

Madam,

With due respect, we are here to submit the following report on Walton Bangladesh according to the instructions given by you.

After going to several Walton showrooms in Dhaka and doing a thorough online research on Walton Bangladesh, we have been quite

successful in collecting necessary background information about Walton Bangladesh. A survey among the existing and prospective Walton users also helped us to understand the market trend and the consumer behavior. The following report is the result of our findings and efforts.

We appreciate this opportunity to work under you.

Sincerely Yours,

Shiek Sazzad Hossain Nusrat Jaman Muna Rifat Sultana A.B.M Golam Muktadir Rehena khatun Ruksana Akter

Program: BBA

Section – F

Acknowledgement

At first we desire to express our deepest sense of gratitude of almighty Allah.

With profound regard we gratefully acknowledge our respected course instructor ANIKA KHURSHID, College of Business Administration for his generous help and day to day suggestion during preparation of the report.

We like to give thanks especially to our friends for their enthusiastic encouragement and helps during the preparation of this report us by sharing ideas regarding this subject and for their assistance in making the report healthy.

Excecutive SummeryThis report was commissioned to analyze and evaluate performanceand future prospects of Walton in a growing domestic electronic

market. The research reveals that in a continuously growingmarket, Walton has become a reliable name for customers.Countrywide network, inclination towards quality and dedicatedteam of employees are the main causes of its success. Though ithad started business with home appliances, yet it has always beencommitted to satisfying customer demand by introducing newproducts. Recent production and selling of motorcycle and air-conditioner testifies that position of Walton.

Walton has a goal to double overall market share in the next 5years. It has successfully positioned itself as a customerfriendly and eco-friendly company. Its after sales service hascontributed tremendously in building this image in customers’minds.

Since its target market is middle-income people, the price oftheir products is comparatively lower than those of competitors’.This strategy helps the company greatly in a price sensitiveconsumers market. In recent years Walton has increasedpromotional activities through organizing various national sportsevents.

Further investigations have revealed that to achieve the role ofmarket leader, it will face challenge from foreign brands.Moreover, rapidly growing demand from customers for electronicproducts may put pressure on Walton. It has adopted marketpenetration, product development and market development strategyfor future growth.

The report has found the prospects of Walton promising in itscurrent position. Favorable government policy will help it expanddomestic and international markets in the future.

Table of ContentsSL No Topics Page

A Prefatory Part

01 Tytle Fly 0102 Title Page 0203 student declaration 0304 Transmittal Message 0405 Acknowledgement 0506 Executive Summery 0607 Table of Content 07B The Report Part(1)

08 Description of the Business 08 09

Key success factor 08

10

Financial situation 09

11

Company vision 09

12 Company objectives 10

The Report Part(2)

13 HR manager and their responsibilities 10

14 Production manager and their responsibilities

11

15 Financial manager and their responsibilities

12

16 Market Analysis 12

17 Weakness 14

18 Opportunities 14

19 Threats 15

20 Strategy 15

21 Product 16

22 Price 17

23 Organizational Structure 18

C Supplimantary Part

24 Conclusion 19

25 PRODUCT PICTURE OF WALTON 20

26 Reference 21

Description of the Business .

Walton limited is now the leading Electronics, motors,Machineries service provider in Bangladesh. It is company of ourcountry owns. Walton is now the largest Electronics, Motors,

Machineries service Provider Company in Bangladesh. Bangladesh isthe only owner of this company.

Head office of Walton is situated at (Jiban Bima Bhaban,level-3)10 Dilkusha C/A Dhaka-1000,HRM Mobile phone and mediaoffice(printers Building, Level 10 & 11, 5 Rajuk Avenue MotijheelC/A Dhaka-1000).Walton central service management system(386/B,Khilgaon Chowdhury para khilgaon Dhaka) They also hve around 19buildings in different area of Dhaka. The factory of Walton issituated at Chandra,Gazipur.

The position of Walton Company better than any other company inBangladesh. They provide good product and service for Bangladeshipeople. Day by day they are developing the value of product. Thedemand of this product not only in our country all over theworld. Walton put a positive impact on the lifestyles of thepeople of Bangladesh. Walton has crossed at 30% million with 35%market share at the end of 2011. There are the 120 outlets ofWalton throughout the country so that customers everywhere canbuy Walton products.

Key Success FactorWalton is the first Bangladeshi company which produce lots of owncountries products, and quality goods at a lower price than anyother company product. Walton works with R.B. groups. It is oneof the top business groups in the country operating with greatreputation since 1977. Walton is providing customers the latesttechnology based products innovative design and excellent qualitywith different models and capacities. Walton brands main productsare (1)Motorcycle(2)Refrigerators & Freezer(3)Airconditioner(4)Mobile phone(5)Television etc. Walton has its own

mold & Die making sections, VMC,CNC wire-cut,EDM machines. It has08 poly urethane forming plants, 15 thermoforming (vacuumforming) units highly equipped metal forming units with powercoating, 2d scanner & printers, nickel-chrome plants and die ;casting section. Walton also has robot operated .Injectionplastic molding plants, highly equipped test labs, printing &packaging section, alloy wheel marketing & Ed plants. Walton hasvery strong & right quality control policy and well equipped qedivision consists of all types of testing device as requiredincluding worlds latest CMM.

Financial SituationWalton strategy is to continue to exercise strong discipline overtheir operating costs and capital expenditure to achieve improvesefficiency and productivity in their operations and leveragestheir existing capacity. They have also plan to reduce theiroperation and maintenances expense by, among other things, usingsolar power, controlling service agreement pricing and lobbyingto reduce the other tax. That’s why they are using as

● continuously grow manufacturer base

● Focusing on high value customer

● Achieve capital and operational efficiencies to improveprofit margins and cash flow generation.

● Increased Brand Awareness and reinforce brand values.

● Increased revenue from new services

● Continue to expand their comprehensive distributionproduct.

● Standard quality certificates including ISO 9001:2008 &ISO 14001:2004.

Walton service network is the country’s only ISO 9001:2008Standard Certified after sales service network.

Company’s VisionWalton vision is “ AMADER PONNO” that means Walton ltd. Is alwaysthere to help the customers get the full assistance ofcommunications services in their daily lives. They want to makeit simple for the customers to get what and when they want it. Sothey are making lots of show room different place in our country.

That’s why they follow the strategy that effectively become thefirst position in Bangladesh. They also are going to lunch infuture new brand mobile, freeze, and motor cycle.

Company’sObjectivesWalton has been established to provide high-quality goods and servicesat affordable prices. Walton has a dual purpose

● To receive an economic return on its investment

● Contribute to the economic development ofBangladesh where technology can play a critical role

The company has developed its strategies so that it earns healthyreturns and at the same time, contributes to development of thecountry. Its aiming to place its product in each village tocontribute significantly to the economic benefit of the poor. It

is the way to get a total uprising in the electronic field. Byaccomplishing the success factors. Walton would like to introducenew quality model product to his honorable customer.

HRmanagerHR manager is a person who controls the human resources of acompany. A human resources manager involves into the seriousdiscipline of the human manpower and maintains the personal,emotional and financial needs of the human beings, as they arenot unit-dimensional entities. And, hence, human resourcemanagement was involved to cultivate a positive work culture inthe organization, motivate the employees and streamline therecruitment process and providing training to the employees.

HR Manager Job Responsibilities:

● Involving in the resources hunting and recruitment process ofan individual.

● Identifying and verifying the documentation of the staff forthe recruitment process.

● Maintaining the records o an employee details.

● Gathering information from other department and employees.

● Arranging the various training and development programs.

● Ensuring about the employee safety, security, welfare, wellnessand health.

● Providing company committee facilitation and participation

● Administering the duties of the performances appraisal andmotivating the employees.

ProductionmanagerProduction manager is a person who collects all materials formaking a product. Production manager mainly guides the planning,scheduling, budget managing, coordination and management ofindustrial process. They also ensure that the production is inagreement with the guild, safety and union regulations. The rangeof this job depends largely on the production system type: massproduction or batch production. In progressive firms, aproduction manager is closely integrated with sales, marketingand finance.

Production Manager JobResponsibilities:● Watch over the production process and coming up with aproduction schedule

● Sketch out timescale for the work

● Recognizing training need

●Making sure the production is cost effective.

● Responsible the production processes and regulate schedules asper requirement.

● Evaluating the performance of people working under them.

● Figuring out the estimate material and human resources thatwill be needed.

● Implementing the organizations goals and policies along withthe mangers.

● Setting healthy and safe guidelines and making sure they arefollowed stringently. But finally, they see to it customers aresatisfied and goods are produced on time.

FinancialmanagerA financial manager control the finance department, collect thefinance. Financial managers provide financial support and adviceto colleagues and clients, thereby enabling them to analyze thedecisions are vital in making an organization successful andthere is a need to analyze the future implications of a decisionregarding finance. This is carried out by financial managers.Also they help in maintaining and establishing management andfinancial procedures.

Financial Manager Job Responsibilities:

● Interpreting and providing information related to finance.

● Interpreting as well as managing cash flow

● Predicting the possible trends of the industry.

● Giving appropriate advice by analyzing changes

● Formulating long-term business ideas that are useful for theorganization.

Market AnalysisBangladesh with its growing population and economic growth hashuge demand for household products. The fact that only about 60%of the country has electricity available proves that whenelectricity will be available throughout the country, demand willincrease further. As the people of this country are mainly pricesensitive, Walton, being the sole manufacturer of refrigerator,freezer and motorcycle, is very keen to meet the demand of thislarge market by providing competitive prices. Walton’s primarygoal is to capture the local market, as they are still behindmarket leader LG-Butterfly. But they are also exporting theirproducts. Already they have customers in Myanmar, Bhutan and toexpand their market to Africa.

Competitive AnalysisIn the field of home appliances such as television, refrigerator,freezer, air-condition etc.some of Walton’s competitors are:

LG - LG

SONY LG GENERAL

SINGER - GREE

SAMSUNG - SAMSUNG

PANASONIC WHIRPOOL -

Most of these brands have been in this market for a long time.But none of them were able to match the market growth of Waltonin the last 3 years. Although LG-Butterfly is the no.1 homeappliances brand in the country, Walton is catching up fast.Walton has started manufacturing major parts for the assembly ofmotorcycle. Right now they hold nearly 8% of the market share.Its competitors are:

• BAJAJ• HERO• HONDA• DAYUN• TVS• SINGER• BUTTERFLY• ZALLIN

SOWTAnalysis

Competitor

Television

Refrigerator

Air-condition

Strengths:

• Largest electronic base in Bangladesh

• Strong distribution channels and customer service

• Leadership in product development and services

• Good Human Resource and Infrastructure Installation allover the country

• First service advantage

• Well-recognized brand name and reputation

• Loyer Customer Base

• High Ethical Standard

• Experienced management team

Weakness

• Limited items.

• It has management problem.

• Too much inside out thinking in the company.

• Different departments not working together.

• Sometimes a tendency to be ignores.

• High employee turnover.

Opportunities

• Its more show rooms.

• No long-term Distribution/Channel strategy.

• Focus on additional requirement.

• Improved technological improvement and network coverage.

• Increased socialization.

• Demand for new & innovative products.

• Provide online buying facilities.

• Increase the brand value though initial offering.

• New and better interconnection of distributor.

• Huge need for electronic services.

• Declining prices for Walton handsets.

• Economic growth of Bangladesh.

Threats

• Aggressive marketing from company.

• Price war.

• Switching power of customer increased.

• More rigid government regulations.

• Increased marketing/operating costs.

• Increased bargaining power of the consumers.

• Sabotage of installation.

StrategyWalton always try to make the best possible services. Moreover,it does not promise any specific quality standards in service.Walton now try to give service all side in our country. Waltontries hard to offer the best service quality, though, thequality, consistency and accessibility of service is notguaranteed as the same are dependent on various technical,physical, topographical, distinctive, environment, regulatory,legal, and such other factors. Walton has the right to change/very / reduce the extra charges, prices, validity period,product/service feature and any other offers etc at any time inits sole carefulness for any reason subject to officialnotification of such offers prior to giving effect to suchchanges.

ProductWalton has a good number of products available in the market. Thecompany products, home appliances, mobile, generator andmotorbike. A brief description of its major products is givenbelow:

Refrigerator:

Walton mainly produces home appliances. In fact in its websitethe company is introduced as the pioneer in refrigerator

production in Bangladesh. Walton refrigerator & freezer ensureshighest quality compressor, condenser is made by 100% copper,which lasts for 20-30 years. The most important thing is thatevery spare parts including door with different color arechangeable and available everywhere over the country.

Television:

Walton produces LED, LCD, and CRT televisions. Walton televisionensures home cinema entertainment. Walton Television’s d4taDigital Technology is one of the most innovative technologicalsolutions that automatically reduces video noise, Selects thebest picture and performs fine-tuning by auto frequency trackingtechnology.

Motorcycle:

Walton motorcycles are now competing with the Indian Hero-Hondaand TVS brand. The motorcycles have become famous because of thespecial specification like mobile phone indicator, digital geardisplay, fuel location meter, air shock absorber, remote control,hydraulic brake, anti-Theft lock and alloy rim etc. Waltonmotorcycles are also fuel-efficient.

Other than these products Walton also produces Mobile handsets,generators, air conditioners, DVD players, and microwave ovens.

PriceWalton’s main target market has always been middle-income group.So they have been very careful in setting their price product.Also the fact that they manufacture their products, it allowsthem to set a lower price than their competitors, as they don’t

have to pay heavy import duty. Below is a comparison of theprices of different products of different brands-

Table 03: Price comparison of Refrigerator.

Model Walton LG TRANSTEC SHARP

10CFT 26,200 35,000 32,000 29,500

10.5CFT

28,100 38,300 32,500 31,000

11.5CFT

29,700 40,600 36,600 37,000

Table 04: Price comparison of TV.

Model Walton LG Sony My One29” colorTV

18,500 28,350 26,350 22,700

37” LCD TV 48,800 65,600 59,500 -

42” LCD TV 75,200 95,000 88,000 -

Table 05 : Price comparison of motorcycle.

Model Walton Bajaj Hero Honda TVS125 cc 103,900 175,000 155,000 160,000

110 cc 96,000 148,500 145,000 140500Cruiser 93,300 120,000 110,000 98,000

In all three products in which we have done market research, itis evident that Walton is providing the customers with the leastexpensive product. It is vital for Walton as price is the onlytool where they have a superior advantage over other brands. Butit must be noted that consumers in higher income level also lookfor quality products. So Walton needs to find a fine balancebalance between price and quality as they move forward in thecoming years.

OrganizationalStructureWalton has now more than 1000 employees. Walton is divided intoseveral department namely technical, sales & marketing, customerrelations, administration, human resources, finance and IT.Recently management has brought a change in the organizationalstructure in view of need of time. Management and organizationstructure of Walton bd Ltd. Are given in the following-

INPUT OUTPUT PROCESS

Organizational Structure

The procedure for determining the dutiesand skill requirements of a job and the kind ofperson who should be hired for it.

Facilities

● They get well environment for work

● They receive handsome salary

● Up level officers get transport facilities

● They get medical facilities

Planning

Admin Dept

HR DeptProduction Center

Technical Dept

Financial Dept

IT

Expert Dept

Design Center

Factory Director

GeneralManager

● They get yearly bonus

● Every employee have different department.

● They also get residential facilities

● Every employee has insurance facilities

SUPPORT● Every customer can get high quality product.

● They can get their necessary product from any showroom.

● They get warranty and guaranty

● They can buy their product in a chip rate

Conclusion

The company has been running its business with good reputationsince 177. Establishment of Walton HIL to manufactureRefrigerator & Freezer, Air Conditioner, and motorcycle etc. inBangladesh is a milestone in the path of success and reputationof the brand WALTON. Walton HIL is the first company to introduceadvanced research and manufacturing technologies and equipmentfor household & commercial Refrigerator & Freeze, Motorcycle andAir Conditioner etc. in Bangladesh. For Bangladesh, Walton hasbecome a company to be proud of in the export arena. Walton hastruly redefined Bangladesh from being a consumer country to aproducer country for home appliances.

WALTON PRODUCTS

Reference:

1.“ITALTEL’S new chief gets what she wants” business week, april 30. 1984,p.51;Robert ball, “italy’s most talked-about executive,” fortune, april 2, 1984,pp. 99-102;marisa bellisario “the turnaround at ITALTEL,” LONG RANGE PLANNING, VOL. 18, NO. 6

(1985), pp.21-24.

2.Zachary schiller, “a model incentive plan gets caught in a vise,” business week,January 22,1996,pp.89-90;caroiyn wiley, “incentive plan pushes production” in Arthur A.thompson,jr,a.j.

3.Susan scherreik, “your performance review:make it perform,”business week,December 12,2001,pp.139-40.

4.http://walton Bangladeshlimited.edu/cahrswp/414,accessed November13,2008

5.Michale totty, “the dreaded performance review,” the wa;bdllstreetjournal,November 27,2006;http//www.halogenoftware.comirl.cornell.edu/cah..

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