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Jamuna Group Report: SWOT & Analysis

Jamuna Group is a leading Bangladeshi conglomerate established in 1974 with industries including textiles, chemicals, leather, consumer products, and mills. It was founded by CEO Nurul Islam Babu and has since expanded to 24 large enterprises through diversification and new technology. As one of the largest textile producers in Bangladesh, Jamuna Group's denim fabric unit can produce a wide range of denim types and weights using modern machinery imported from various countries. The company aims to continue innovating and expanding its operations to maintain competitiveness in global markets.

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0% found this document useful (0 votes)
544 views29 pages

Jamuna Group Report: SWOT & Analysis

Jamuna Group is a leading Bangladeshi conglomerate established in 1974 with industries including textiles, chemicals, leather, consumer products, and mills. It was founded by CEO Nurul Islam Babu and has since expanded to 24 large enterprises through diversification and new technology. As one of the largest textile producers in Bangladesh, Jamuna Group's denim fabric unit can produce a wide range of denim types and weights using modern machinery imported from various countries. The company aims to continue innovating and expanding its operations to maintain competitiveness in global markets.

Uploaded by

SaifSaemIslam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

1

Group report on

Group members name: Group members Id:


Fairuz Anika Anista 1731101630
Nodi Das 1811513630
Saif Saem Islam 1420659030
Siam Talookder 1811377630
Nazim Mahmood 1721515630
S.M Khaled 1812525630

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Letter of transmittal

22 August, 2019

Quazi Tafsirul Islam

Lecturer, department of Management,

North South University, Dhaka.

Sub: Submission of report on Jamuna Group

Dear Sir,

With due respect we present you the final report of mgt212 on Jamuna Group. The report has
been compiled as per your requirements. While preparing this report we tried our best to include
all the relevant information and analysis as much as possible. We also tried our level best to
relate our theoretical knowledge with our real-life experience.

We hope that you will find this report satisfactory. However, if any explanation is required, we
would be honoured to oblige. We expect your considerable judgment in terms of any accidental
error throughout the report.

Sincerely Yours,

Fairuz Anika Anista

Nodi Das

Saif Saem Islam

Siam Talookder

Nazim Mahmood

S.M Khaled

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Acknowledgement

I would like to express my deepest appreciation to all those who provided me the possibility to
complete this report.  A special gratitude I give to our respected faculty Mr. Quazi Tafsirul Islam
Sir whose contribution in stimulating suggestions and encouragement, helped us to coordinating
our project especially in writing this report.

Furthermore, I would also like to acknowledge with much appreciation the crucial role of our
groups members who work hard and co-operated a lot for this project. Special thanks to
[Link] Tafsirul Islam sir for making the things easy and for the better guidance under which
we had done this such a nice project.

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Table of Contents
 Executive summary..................................................................6
 Introduction..............................................................................7
 History.......................................................................................8
 Profile.......................................................................................9-10
 Mission vision statement........................................................11
 Objective..................................................................................11-12
 Organogram (Hierarchy).......................................................12-13
 Salaries of employee................................................................13
 Company success history........................................................14
 Situational analysis..................................................................15
 Swot analysis............................................................................15-17
 PESTEL Analysis....................................................................17-21
 Porter’s Five Forces................................................................21-23
 Management Issues.................................................................24-25
 Recommendation & Conclusion..........................................26
 Picture & References…………………………………………27-28

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 Executive Summary

 Textile industry plays a very crucial role in the textile industry of Bangladesh. Textile
manufacturers produce the raw fabrics that is eventually used in producing final
garments. Jamuna is a renowned textile industry. In our project we are ventilating all the
factors of Jamuna Textile which involves in Jamuna Textiles success. We started with an
introduction. Here we discussed about how and when Jamuna Textile was established. In
history, we mentioned about the founder of Jamuna Group (Nurul Islam Babu) and the
designation on which he belongs to. Mr. Babul’s net worth. We also overviewed the
contributions Jamuna provided to Rohingya crisis. Profile involves the goodwill that
Jamuna Textile gathered throughout the time. Jamuna Textile’s whole operation process
they are involved into, is been referred here. A mission vision statement for Jamuna is
given. It is a short statement of why an organization (Jamuna Textile) exists and their
overall goals. The objective provided says what are their aim for the future which they
want to get achieved. An organogram stated the whole structure of how their organization
is designed. The salary for 5 pivotal employees is been provided. We also discussed
about what measures Jamuna took to maintain the globalized modern market.
Diversification of Jamuna is also affirm in ‘company success history’. Then a SWOT for
Jamuna Textile is scrutinized, here the internal and external factors are separated and then
Strength, Weakness, Opportunity and Threat of Jamuna Textile are been elaborated. Then
the circumstance we argued was Porter’s five forces. Here all the five forces are disclosed
and all the factors are extended taking into consideration of Jamuna Textile. Here
Jamuna’s rivalry among existing markets, bargaining power of buyers and suppliers,
threat of new entrance and substitute were analysed. This analysis will help Jamuna to
better understand its market and its customers and so better operate in the market.
Management Issues separates all the positive sides and negative sides of Jamuna Textile.
In PESTLE, Jamuna Textile’s Political factors (legal aspects), Economic factors (like
growth, stability of Jamuna Textile), Social factor, Technological factors, Environmental
factors and Legal factors are been discussed. All those dissect will help Jamuna Textile
operate smoothly in the market. And lastly, a conclusion is provided. Here we ended our
project and provided an overall view for the project.

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Introduction
Jamuna Group is one of the leading Bangladeshi industrial conglomerates. The industries under
this conglomerate include Textiles, Chemicals, Leather, Consumer products, mills etc.

Type Private

Industry Textiles, chemicals, construction, leather, engineering, beverages, media, 

advertisement, electronics

Founded 1974; 45 years ago.

Headquarters Dhaka,

Bangladesh

In 1979, the Jamuna Group has launched by the CEO of NURUL ISLAM BABUL. It is a
public limited company. The organization is an evolving private company that has constant
growth within the competitive industry in Bangladesh, Jamuna Group possesses high values.

Jamuna Group was been formed in 1974 and since then accelerated to its journey with the
commitment to the society to build prosperous Industrial backbone for socio economic
development of the country. More than three decades it has established a number of diversified
industries for manufacturing and marketing of a wide spectrum of consumers and export-oriented
products.

Jamuna Group’s sincere response to the challenge of economic development in congenialatmosp
here for private sector provides major stimulus for phenomenal growth of thegroup. Jamuna Gro

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up have brought the best technology to Bangladesh through a numberof collaborations and joint 
ventures with world renowned and leading companies and stillare trying to implement the latest 
debut technologies through multiple collaboration and joint ventures with the world-renowned le
ading companies for the quality products

 History:

As an evolving private company that has continually grown within the competitive industry
in Bangladesh, Jamuna Group possesses high values, but the most crucial value of the
company is its human resource and the Managing Director, Mr. Md. Nurul Islam. The name,
Jamuna group is inseparably associated with the name of Mr. Md. Nurul Islam, an architect a
pioneer ultimately an Industrial leader in the private sector. To maintain its competitiveness
in todays globalized modern market, Jamuna introduced the best technology along with
machinery and expertise in Bangladesh. Jamuna developed and expanded its enterprises of
multi-dimension for diversifying its product range. In course of 34 years of operation Jamuna
Group expanded into a giant dynasty of 24 large scale enterprises.

Jamuna has a strong goodwill for its products and operation in both local and global market.
It is imperative to point out that Jamuna has built up a new World of textile with the best
technology and machinery imported from Germany, Switzerland, USA, Japan, India, Italy
etc. for producing the best quality products for the global market. Its a denim fabric

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producing unit that can produce every type of denim fabric starting from basic to fancy items
like slub, chambray, cross hatch, bradford etc starting from 4.5 oz to 14.5 oz comparable to
the modern trend of denim market. They are specialized in stretch denim as they are having
the stenter machine that is required for special treatment of lycra. they are equipped with
Mercerizing-Desizing range for flat, soft and over dyed denim fabric. Also, they can produce
various coated denim fabric like PU coated, waxy finish, laminated, pigment/dye coated as
they are having coating head as well. It is equipped with the modern machineries consisting
of latest, guaranteed and precision technologies sourced from Switzerland, Italy, USA, Japan,
India, China and Taiwan. Jamuna Denim is a well-known name in the Denim Industry,
started in the year 2005. Its a composite unit that is capable of making denim garments as its
and #65533; final output. The yarn is being made at Shameem Spinning, denim fabric at
Jamuna denims ltd.(textile division), garments at Jamuna denims ltd.(garment division) and
knitting and knit dyeing at Jamuna knitting and dyeing ltd.(knitting and knit dyeing division)
all are under the same roof and same big name and #65533; Jamuna Group Of Industries Ltd.

 Profile:

As progressing private company which is persistently growing within the competitive


industry in Bangladesh, Jamuna Group owns high values, but the most crucial value of the
company is its human resource and the Managing Director, Mr. Md. Nurul Islam. The name,
Jamuna group is inseparably associated with the name of Mr. Md. Nurul Islam, an architect a
pioneer ultimately an Industrial leader in the private sector. He heralded the Jamuna’s
appearance in the arena of private industrial sector in 1974 with the mission and vision of
building newly independent Bangladesh as a happy and prosperous country. Jamuna started
its journey with the Jamuna Electric Manufacturing Co. Ltd in 1974 and it pioneered the
manufacturing electrical accessories and fittings in Bangladesh since 1975. There after JGI
flourished as a giant conglomerate as shown in the chronology.

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Jamuna has a robust goodwill for its products and operation in both local and global market. It is
imperative to point out that Jamuna has built up a new World of textile with the best technology
and machinery imported from Germany, Switzerland, USA, Japan, India, Italy etc. for producing
the best quality products for the global market.

Jamuna Denims Ltd. is a well known and reputed company in the Bangladesh garment industry.
We specialize in designing and manufacturing a variety of products, from basic items to highly
fashionable garments. Guided by our customers’ ideas, our conceptual ideas and emerging trends
in the industry, our highly qualified and experienced teams create superior quality garments that
meet the requirements of all our customers and exceed their expectations. 

It was established in 1991. Our monthly production capacity is 250,000 pieces, and yearly
turnover is $20 million. Our company leverages art, design, technology, and professional acumen
to create high quality merchandise with an uncompromising attention to detail. We are guided by
important core values, mainly hard work, integrity and a steadfast commitment to a constant
level of satisfaction to all of our customers.

 Mission vision statement:

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Vision:
This interpretation of organization business as a means to the material and social well being of
the investors, employees at large leading to accretion of wealth through financial and moral gains
as a part of the process of development of civilization.

Mission:
Produce and provide excellence facilities and un innovative products for people, maintain ethical
slandered in business operation, also ensuring benefit to the stakeholders and peoples of
Bangladesh.

 Objectives:

Jamuna Textile consistently wants to improve product line and want to provide regular rank to its
buyer and clients. Generate workable commercial value shareholders, buyers/clients. Offer
motivating work, extensive opportunities for learning and carrier enlargement. Bearing business
in socially responsible modus. Recover ethical and business usual of skill governance.
Supervision, social responsibility, environmental control. Comprehensive International standard
of compliance as per ISO 9001:2000. Improve suitable leading risk valuation classification.
Ripen a plan for enrolment, reward, training plus tactics. Develop appropriate met, structure,
systems, procedures and approaches. Grow scientific MIS to monitor corporation’s actions.
Jamuna Textile owns and drives unique composite textile plant having foundation, knitting,
staining, ruining and printing facilities producing high quality products like bed sheet, bed cover,

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pillow item, table cloth, shirting fabrics, napkin, bath linen, kitchen linen, bath towel, kitchen
towel, fancy towel and all species of home textile products for promoting in Europe and North
America. Toward individual option the company’s products enter into the local market.

 Organogram: This chart is a diagram that shows the structure of the organization and
the relationships and relative ranks of its parts and positions/jobs.

Organogram of JAMUNA TEXTILE GROUP:

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Salary of employees:

Salary Chart
Designation Employees Name Salary
Managing Director [Link] Hasan 3,25,000
Deputy General Manager Zahidul Islam khairul 3,00,000
Assistant general manager Mujibur Rahman 2,00,000
Admin Manager Johir Islam Syed 1,25,000
Production Manager Shafiuddin Ahmed 1,25,000
 Company Success History:

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To maintain its competitiveness in todays globalized modern market, Jamuna introduced the best
technology along with machinery and expertise in Bangladesh. Jamuna developed and expanded
its enterprises of multi-dimension for diversifying its product range. In course of 34 years of
operation Jamuna Group expanded into a giant dynasty of 24 large scale enterprises.

Over the thirty-four years of operation, the Group has ventured into chemical, leather, garments
and textiles- including spinning, knitting and dyeing, printing. Jamuna has a strong goodwill for
its products and operation in both local and global market. It is imperative to point out that
Jamuna has built up a new World of textile with the best technology and machinery imported
from Germany, Switzerland, USA, Japan, India, Italy etc. for producing the best quality products
for the global market.

 Awards:

Best recipient of National and International awards:

Shameem Composite Mills Limited received National Export Trophy, Gold award in 2000-2001.
Shameem Spinning Mills Limited received National Export Trophy, Silver award in 1998-1999.
Jamuna Knitting & Dyeing Limited received National Export Trophy, Bronze award in 1998-
1999.

Jamuna Builders Limited wins Better Building better Winning Competition 2002 of Scan
Cement (Heidelberg-Cement-Group).

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Jamuna Knitting & Dyeing Limited got an award from Miles Handle Sgesellschaft International
MBH & Co., Germany.

 Situational analysis (SWOT analysis):

This is the collection methods that company managers use to analyze an organization's internal
and external environment to understand the organization's capabilities, customers, and business
environment.

Identification of SWOT is important because they can inform later steps in planning to achieve
the objectives. SWOT is expounding in 2 ways – external and internal. Strength and weakness
are frequently internally related, while opportunity and threat commonly focus on the external
environment.

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Internal factor includes- price, quality, operation in large scale, brand image of Jamuna, loan
availability, low labour costs, fewer creativity, importing raw materials, Denim pants,
technological advantages.

And external factor includes- economic, political stability, infrastructure, exchange rate threat,
competition among the domestic market, long-process of custom clearance, export require a long
process, lack of new investment.

 Strengths

Brand image - Brand image / value is one of the biggest strengths of Jamuna Textile. So, the
brand value, itself is a trusted region for all of the Jamuna’s customer and gives Jamuna an added
advantage. Jamuna Denim has a high demand for their product in both local and global market.
Jamuna Denim is a brand worldwide known and used.

Technological advancement – Jamuna has high demand because they supply superior quality
product. Quality has been certified because Jamuna has the best quality technology from USA,
Japan, Switzerland. Due to upgraded technology, quality of Jamuna Denim has been fortified.

Price competitiveness - Price of Jamuna product are competitive in global market. Due to low
labour wage and experienced worker, total cost has become more systematic for Jamuna. All
those lead to low cost and competitive price.

Economies of scale – Jamuna operates in a large scale, this led to economies of scale. And so,
per unit cost is reduced.

Availability of loans - Being a renowned brand, Jamuna can easily acquire loans from bank and
have to pay less burden on procedure for paper work of loan. All these are strengths for Jamuna
Textile.

 Weaknesses

Lack of creativity - There are few rooms available for the worker to be creative. All the product
including competitors, are identical. Due to this buyer can easily replace Jamuna’s product with
other company’s product. And thus, change the supplier (Jamuna Denim).

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Importing raw material - Raw materials for the textile has to be imported from other countries.
So, this requires a long process to import the raw material. Moreover, the quality is not always
up to the expectation, and those faulty products might not be get exchanged. Also, price of raw
material rises because of importing.

 Opportunities

Economic growth - Bangladesh’s economy is one of the speedy growing economy.


According to IMF Bangladesh is the 2nd fastest growing economy. Bangladesh’s growing
economy is an opportunity for Jamuna. Growing economy influence natural resources
availability and efficient human capital. And so, both of this aids Jamuna to fatten and enlarge.
Jamuna can get efficient human resources, better location for land and so on.

Infrastructure - Jamuna Textile’s office is mainly located at Dhaka. Within Dhaka,


infrastructure is quite good compared to other places in Bangladesh. This smoothens Jamuna’s
operations and products movements from one place to another. Thus, all those are added up as
an opportunity for Jamuna Textile.

 Threats

Competition between rivalry companies - Competition is one of the main threats for
Jamuna. The market in both global and domestic market are highly competitive. Jamuna
should concentrate to be more efficient to maintain stability in the market.

Long export process - Exporting product require a long process and so is time consuming
which are considering to be hurdle for Jamuna Textile.

Exchange rate - Exchange rate vary from time to time. So, it is a big risk for Jamuna and their
customer (the country importing them). Sudden change in exchange rate creates more
complexity and thus market for those textiles get more vulnerable.

PESTEL analysis: PESTEL is a configuration that stands for Political, Economic, Social,
Technological, Environmental and Legal factor and how these factors effect a company’s
external environment. Below is the PESTEL analysis of Jamuna Textiles.

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[Link] factors:

Here, we’re considering some political factors which might influence Jamuna Textile. One
principal factor is political stability. The political stability index of 2017 for Bangladesh is -1.25.
the minimum political stability is -1.86 and maximum is -0.37 between the period of 1996-2017
for Bangladesh. So, for Jamuna, political factor might be an issue to consider as -1.25 states a
quite unstable political situation. And an unstable situation creates more complication and
decision making becomes more vulnerable for Jamuna. Corruption is a major problem for
Bangladesh. Out of 180 countries, Bangladesh is in 143rd position according to Corruption
Perception Index ranks. Corruption might origin problem for Jamuna, because it slows down
overall growth in economy. Production slows, allocation of resources gets mismanaged and so
on. Jamuna should contemplate more on working without corruption and should work ethically.
One of the crimes that Jamuna Group committed was evasion of tax. This is highly an unethical
act. This took place in around the year of 2016. This action acted as a drawback for Jamuna
Textile. Jamuna Group was charged 700 crore including interest for this deception. All these
hampered Jamuna Group’s decency and goodwill. And as Jamuna Group’s goodwill was
hampered, Jamuna Textile was also affected. If we examine trade restrictions, then trade within 2
countries always requires a long process. Jamuna Textile have to face all that enormous process,
while exporting their clothing to other country. They have to face high tariff rates, supplementary
duties.

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[Link] factors:

Bangladesh will be 3rd rapid growing economy in 2019 according to a United Nations Report. It
stated that, Economy of Bangladesh will grow at 7.2% in 2020 while India at 7.4%. If we expect
growth in future years, we can expect that a growing Bangladesh’s economy is a grave advantage
for Jamuna Textile. This growing economy will provide Jamuna with a lot of advantages.
Inflation rate will be more stable. Thus, better future plans with fewer defects can be predicted
by them which will allow them to understand their problem better and conquer them and make
more possibility toward profit. The demand for Jamuna’s product will increase because when an
economy grows, demand overall rises. Also due to growing economy disposable income for
Bangladesh’s people will increase. A growing economy usually have a lower interest rate which
will be an advantage for Jamuna in various ways such as Jamuna will be able to borrow money at
a lower interest rate from bank and so would be benefited. Also, general people will also take
more loans and so spending will rise. This will lead to an increase in the aggregate demand and
also demand for Jamuna’s textile products. Although Bangladesh has a huge labour force,
growing economy will lead to low unemployment. Due to this, the labour wage rate might go up
a little. This might increase Jamuna’s expenses for paying more wages.

[Link] factors:

Bangladesh is the eight most populated country in the world with almost 2.2% of the world’s
population. This increased population, in many ways is beneficial for Jamuna Textile. Increased
population means a huge labour supply is accessible for them. Also, high population will lead to
elevated demand for their product. Research said that people between the age of 15-64 is quite
high in Bangladesh. And within this age range, the demand for clothing is also high. Thus, its is
an opportunity for Jamuna to grab the market. If we consider other factors like- lifestyle and
culture, then we can say that Jamuna Denim is quite popular within Bangladesh market as well
as globally. And so is suitable for the culture to fit in and also appropriate for the lifestyle with
youngers.

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[Link] factors:

If we inspect technological factors, we will see that Jamuna has a really advanced technology
within the textile sector. Their machines and equipment are imported from countries like – USA,
Japan, Switzerland. Due to all these advanced machines, work and quality of the product is
upgraded. Product gets more identical with fewer inadequacy. And for this, influence of labour
on Jamuna Textile also decreases. Production process becomes smoothened. Productivity,
efficiency both rises and wastage decreases. On the other hand, Clothing fashion changes quite
frequently. So, the technology or equipment used also needs to be upgraded time to time. But
replacing all those heavy, huge machineries might be a big issue for Jamuna. As this might incur
huge expenses.

[Link] factors:

Weather and climate might not be a concerning factor for them because Jamuna Textile is a huge
plant and mostly uses technology for their production process. So, it is basically an indoor
process. So, climate change is not a concern for them. Pressure from NGO’s might not be a
major consideration for them, as Jamuna Textile itself is an enormous industry and can easily
influence other companies’ decisions. But it is necessary thing to mention that Jamuna Textile is
quite concerned about the environment because industries like textile produces various
poisonous wastages that is quite harmful for the environment. So, they try their best to keep the
wastage as low as possible and use environment friendly materials in producing.

[Link] factors:

Legal factor includes all the things that relates to law. It is an external factor which defines the
way how law can affect Jamuna’s operations. If Jamuna is operating in an ethical way it should
not worry about some legal factors. It also examines the fact that if Jamuna is violating any kind
of rules or regulations which might affect their customers or workers negatively. Bangladesh’s
Law on Exporting has created a scheme to regulate the approval process for exporting and
provide incentives to exporting companies. They have recently simplified the licensing scheme
and increased transparency and predictability by enacting the Law on the Amendment to the Law

20
on exporting. New business registration takes approximately two weeks. Depending on the types
of business activities, new businesses are also required to register with other relevant ministries.
It includes separate procedures and can take up to three months to complete all business, tax, and
employment registration processes. Jamuna has a great opportunity in this market if considered
these factors.

 Porters Five Forces:

This theory is based on the concept that there are five forces that determine the competitive
intensity and attractiveness of a market. Porter’s five forces help to identify where power lies in a
business situation. This is useful both in understanding the strength of an organisation’s current
competitive position, and the strength of a position that an organisation may look to move into.

Strategic analysts often use Porter’s five forces to understand whether new products or services
are potentially profitable. By understanding where power lies, the theory can also be used to
identify areas of strength, to improve weaknesses and to avoid mistakes.

1. Threat of new entrants

The threat for Jamuna Textile due to new entrants in the market is considered as little inflated.
Textile industry plays a vital role for Bangladesh. Textile and clothing are supreme exporting
businesses of Bangladesh as it holds 81% of our total exports. So, more companies get more
enthusiastic to join the textile industry. And so, this might be considered as Jamuna’s threat. But

21
Jamuna operates in high scale which might be a disadvantage for the new entrant brands to make
themselves establish its existence in the market. Because Jamuna might have a competitive
advantage due to economies of scale. Also, Jamuna has a huge brand image and due to this brand
value, Jamuna might be preferred and desired more than other companies.

2. Threat of substitute

While considering substitutes, we can observe that Jamuna Textile have some highly competitive
substitute in the market of Bangladesh. Some textile industries are straight into competition with
Jamuna Textile and they are also equally efficient in this industry like – Beximco Textile and
Square Textile are two major competitors of Jamuna Textile.

Beximco started ‘Yellow’ in 2004 and have introduced 11 stores in Bangladesh. And have top
level branded designer who have top led experience from brands like – Pepe jeans and Massimo
dutti. Square fashions limited, produces wide range of product like polo shirt, t-shirt, trouser,
undergarments and many more. Square fashions also operate in huge scale with resource of
13000 human capital. These two textile industries are major competitors of Jamuna Textile.

Also, there are some small companies like Viyella Textile group. So, all of the competitor’s
products will be regarded as Jamuna’s substitute product. All those industry and brands are threat
for Jamuna Textile. And having substitute might encourage Jamuna to get more efficient overall.
So that everyone might considers Jamuna’s product over others. Briefly we can assume that
Jamuna has a lot of substitutes within Bangladesh.

3. Bargaining power of suppliers

Cotton, jute, wool is the main raw material for Jamuna Textile. While considering cotton
consumption, Bangladesh is in the fourth place around the globe. In 2018, demand for cotton was
8M, out of which Bangladesh only could produce 150000 bales of it. So, the rest of it is imported
from other countries. Importing, itself increases the costs for Jamuna Textile. But as Jamuna
produces in huge dimension, so they import in bulk. And thus, the bargaining power lessens for
the supplier or exporter. Because if the supplier charges higher price they might lose their one of
the immense buyers in Bangladesh. Also, labour supply in Bangladesh is high and 65% of

22
employment is created by the textile industry in Bangladesh. So, labours have really low
bargaining power over Jamuna Textile.

4. Bargaining power of buyers

If we examine the buyer’s bargaining power then it might vary in different market. Like in US
and EU markets, demand is really high for textile and as Bangladesh is one of the prime
exporting countries in textile and clothing, they are highly dependent on Bangladesh’s product
and so the bargaining power of customer in those sector or country might be low. Bangladesh’s
labour cost is low and production process is more cost effective here, as Bangladesh is more
well-ordered than others in this sector. As a result, she can provide goods at a low cost. So, there
is few rooms available for bargaining as price is already low. But within Bangladesh market,
bargaining power of customer is quite high as more substitutes and options are available for
customers. So, they customer can easily change their brand preference and so, within Bangladesh
bargaining power of buyers is high for Jamuna Textile.

5. Rivalry within the industry

Rivalry within the industry is high. More industries are attracted to get recognition. Textile is
currently, one of the most profitable business in Bangladesh due to its high demand in the whole
world. And in international market Jamuna Textile have to face high competition from China and
India.

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Management Issues:

There are some problems that Jamuna Textile Industry faces. Managing all the things together is
very difficult. There are many things included in managing.

 Textile industry is a huge and diverse industry ranging from handloom sector to export
quality jacquard fabrics, from garment manufacturing units to yarn spinning mills and it
goes on. Exposure to high levels of noise is seen in Jamuna textile factories, particularly
in those in factories where the machines are not as well maintained. This has caused
hearing loss to many textile workers. It can also cause sleep disorders, changes in blood
pressure, anxiety and other ailments. However, they’ve taken steps to solve these
problems like providing those workers free health and medicine facilities, leave of
absence etc.

 Wages of workers is another management issue. Sometimes there could be a possibility


of discrimination between the helpers. Apprentices are helpers who have been working in
the garments for less than three months. After three months, Apprentices are appointed as
helpers. Often female helpers are discriminated against in terms of wages levels, and
these wages are sometimes fixed below the minimum wage rate. If this continues to
happen, there is a possibility to hamper the company’s production as well as overall
performance.
 They don’t make their employees feel important. They have to run under strict rules for
the profit of the company. They can’t make work choices. They need to maintain typical
hierarchy method in every sphere in the industrial work. Sometimes, employees see bad
behaviour and poor performance going unnoticed or unchallenged. It makes them
demotivated. They feel ignored and unappreciated.
 There are some other problems which can be seen. Problems like lack of marketing
tactics, absence of easily on-hand middle management, a small number of manufacturing
methods, lack of training organizations for their workers, supervisors etc.

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There are some good things that Jamuna Textile Industry follows:

 Jamuna textile maintains customer relationship management which is really important to


maximize profit. They build and maintain profitable customer relationship by delivering
superior customer value and satisfaction. Jamuna estimates customer life time value, net
present value of all future profit through company's papers, documents, goodwill etc.
Jamuna Textile interacts with individual customer to improve knowledge about their
needs through communication. It identifies close service gaps and improve the service
recovery to solved the customer problem. Jamuna Textile Industry offers negotiable price
for large volume of customer. Offering the attractive rate at the competitive market;
customer want a better product at lower rate. For that reason, Jamuna offers good price
for customers and buyers.
 Increasing the longevity of the customer relationship- They do many things to create a
good relationship with customers. Focusing disproportionate effort on high value
customer- The most valuable customer can be treated in a special way. Thought gestures
such as – Eid greetings, Christmas, birthday cards, small gifts, or invitation to special
event can send a strong signal to the customer. Jamuna Textile Industry also send or fax
helpful news – paper clipping and relevant articles.
 Among the functional areas in a textile company, marketing exerts the sheer part of the
importance. In Jamuna textiles, proper implementation of the marketing tools as well as
identifying new clients ensures their success of many projects.
 Jamuna textile workers get a good working environment. They get the good amount of
wages now-a-days which encourage them a lot to work more and increase productivity.
They can even take sick leave or emergency leave if it is absolutely needed.

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Recommendations:

1. A plan at all levels of the company, not just at the aggregate level should be established.
2. All departments of Jamuna Textiles should be well informed regarding their goal and
objectives. It is essential to execute their objective into individual targets.
3. Harmonious and cordial relationship should be formed between Jamuna employers and
employees to main a good and balanced environment within the company.
4. Poor working condition should be substituted by agreeable working condition.
5. The company should introduce more promotional activities.
6. Existing management practices should be modernized.

Conclusion:

In the whole system of Jamuna textiles and as well as in textile industry, we’ve found few
problems. These problems are of two types. One is internal problem, means problems that exist
in Jamuna textiles or group which hampers the performance of Jamuna textiles or group. The
second one is overall problem; means problem which exists in the system and as well as in the
industry. Though all those things, the main purpose of doing this project is to know how Jamuna
Textile is managed, how they run their business, their managerial factors and issues and what
helps them to achieve their targets. One of the main reasons for being successful is the support of
Government and their hard work. Throughout this report it can clearly be seen that their overall
management is efficient and continuously improving. In this way the company is running
towards progress and development.

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 A picture with Mr. A. B. M Shamsul Hassan, Director of
Jamuna Group

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