MANAGEMENT REPORT

SAIF POWERTEC LIMITED

MGT210
Section-18
Course Instructor-NNA
GROUP MEMBERS: ID:

ASIB M KHAN 1420688030

MOHAMMAD RAFEE IQBAL 1421414630
ZAHID SAFDER 1420654630
KHAWJA NAYEEM ATHER 1420939030
ABDUL MUKEED ZAHANGIR 1421615030
KAMRUL HASAN BAPPY 1420033030
 Acknowledgement

It’s difficult for me to thank all of those marvelous people who have contributed something of
them to this report. There are of course some very special people who cannot go without
mention.

At first, I express my gratitude and indebtedness to our respected faculty, Ms.Aunima Nazmun
Nahar for her continuous guidance, important advice, encouragement and suggestion during the
preparation of the report. I thank of her for sparing her valuable time to read the report.

Then, I express my sincere gratitude to Mr. Tarafdar Md. Ruhul Saif, Director, in Saif
PowerTec Ltd (SPL) for his guidance, constants supervision and constructive suggestions.
Without his help this report might not have been a comprehensive one. I also like to thank Mr.
ASM Zulficar Hider, Head of Renewable Energy. Without his help, we couldn’t have prepared
this report to be so informative. We have bothered him so many times in connection with my
works, both during and after normal working hours.

Finally I am grateful to all the cooperative staffs of SPL.

 Executive Summary

The report is based on SPL. The company was incorporated in the early 90s with a vision to
become one the leading engineering service providers to the energy sector of Bangladesh. SPL
was fully established by the year 1994 and within the year 2000 SPL became the sole distributor
of Daewoo Diesel generator, forklift and excavator (Korea). The company is handled by
Tarafdar Nigar Sultana, Chairman, Tarafdar Md. Ruhul Amin, Managing director and
accompanied by two Directors, Rubya Chowdhury and Tarafdar Ruhul Saif.

Currently SPL is supplying Mitsubishi Quay Gantry crane (4nos) and ZPMC Rubber Tyred
Gantry crane (5nos) to Chittagong port. Since the year 2007, SPL has managed to secure contract
for complete terminal operation (CCT and MCT). At present SPL has a diversified product and
service line. As for goods, it provides LED Light Bulbs, Solar Energy equipments, Polymer
Plastic, Construction Equipments and Power Backup Systems. In terms of services, SPL
conducts seaport terminal operations and provides all key handling equipments of Chittagong
port. Also provides service and overhauling of power plant and fertilizing factories. SPL is also
engaged in designing, manufacturing of distribution transformer and related power distribution
equipment like Substation, Switchgear, etc. It also assembles complete Solar Power Systems.
The company is headquartered in 72, Mohakhali C/A, Dhaka, Bangladesh and it has provided
jobs to a total of 2000 employees. As for the financial aspects of the business, it had a turnover
of BDT 949 million in 2012 compared to 2013’s turnover of a whopping BDT 1470 million.
 Topics Page
Numbers
Introduction 5-6
The culture of the company 7
Ethical Responsibilities of the company 8
Management overview 9
The External Environmental Factors influencing the company 10

Human resource management 11-12

Motivational Challenges the company is facing 13

SWOT analysis of the company 14-16

Theoretical Implementation 16
The strategy does the company follow from McGregor’s Theory 17
X or Y and the cause

Conclusion and Future prospects of the company 17-18

 Introduction

SAIF POWERTEC Limited (SPL), an ISO 9001:2008 certified company, is leading business
house of power and material handling company. Incorporated in 1991, step by step gradually but
steadily Saif Powertec Ltd. (SPL) started its modest journey into the world of engineering
services to the energy sector of Bangladesh. In 1998, it secured sole distributorship of Doosan
Intracore Co. Ltd., South Korea for their construction & material handling equipments & heavy
lifting equipment and by 2001, established its own factory to assemble Distribution Transformer
& Switchgear and eventually became the first Bangladeshi Engineering service Company to
overhaul 196 ton/hr HP Boiler in Ashuganj Fertilizer and Chemical Company Ltd. Power plant
overhauling, servicing and maintenance became the core business of SPL. In 2004, SPL entered
Chittagong Port by securing a prestigious flagship project from Japan for supply and turnkey
commissioning of four Mitsubishi Ship to Shore (STS) Quay Gantry Cranes and separately 5
ZPMC RTG's from China including their maintenance program on behalf of the respective
principals. Saif Powertec continued its business expansion plan and have entered into the world
of renewable energy in 2010. They have started supplying & installing solar power packages. In
the same year, SPL also established a Plastic & Polymer based manufacturing plant and OEM
supply. Today, within a span of last 22 years, whether it is energy based business or port
operation, Saif Powertec become a renowned brand to be reckoned with, in Bangladesh. In
2008, the company got shipping license under the name of SAIF MARITIME LTD.

INFORMATION ABOUT THE COMPANY

SPL was incorporated in Bangladesh as a private limited company on 29 December 2003 and
subsequently converted into public limited company in June 2010 which was certified by RISC
on 19 September 2010.

Date of Incorporation as a private limited Company: December 29, 2003

Date of Conversion into a public limited: June 28, 2010
Nature of Business:

Principal activity of the company is to carry on business of infrastructure-support service. The

company is engaged in importing, trading, assembling and installing generators, sub-stations,
electrical equipments and grid lines. Installation and erection of power plants as well as acts as a
berth/terminal operator for operation of Chittagong Container Terminal (CCT) and New
Mooring Container Terminal (NCT) of Chittagong Port Authority (CPA).
Major Business:

 Chittagong Container Terminal Operation

 Project Management

 TEKSAN Diesel Generator

 DOOSAN Heavy Equipments

 Solar System

 Plastic & Polymer

 Switch Gear, IPS/UPS/VS

Mission
“Establishing the national identity all over the world by innovative success.
Exploring new avenues for increasing customers support as well as business growth.
Monitoring the customers’ perception, that exploring opportunities in all possible areas.”

Vision

“To remain abreast of time in technologically and managerially.

To be a world class port operator.
To provide solution by applying world's best & advanced technical know-how with the best
combination of local & foreign expertise.
To make firm contribution towards the growth of national economy & GDP.”
 CULTURE OF THE COMPANY

SPL maintains a strong organizational structure where values area widely shared among all the
stages of management and employees are able to strongly relate to the ideas and shared views. It
is also a company where the majority of the employees have a detailed understanding about the
company’s history and philosophy. For example, every week coordination meetings are held
among the different departments with their respective department heads. The meetings focuses
on the actions necessary to achieve greater customer satisfaction. This gives the employees the
perfect opportunity to openly share their views and ideas with their respective departments. This
process gives the employees a sense of belongingness in the organization, thus keeping them
highly motivated. Furthermore, the employees are also given the opportunity to report the
internal problems to their department heads. Their department heads discuss the internal
problems with their directors and provide suitable solutions to improve the company’s
performance. The employees are also entitled to give periodic feedbacks regarding the works
they are engaged with.

All in all, in order to maintain a strong culture, the company takes the steps given below:

 Look for competent, able, and willing employees

 Training and socializing people as they hire the staff

 To establish and communicate the key business performance indicators at every level of
the organization

 To train the people to solve problems and continuously improve processes in their daily
work basis

 Developing leaders who live and teach the company's philosophy

 Reward the top performance-and offer help to those who are struggling
 ETHICAL RESPONSIBILITIES OF THE COMPANY

Corporate Social Responsibility (CSR) is an integral part of SPL business strategy. Some of the
CSR activities undertaken by the company are showing as follows:

SOCIAL RESPONSIBILITY

SPL recently has donated funds worth BDT 1 million to the petrol bombed (Molotov) victims
admitted at the burnt unit of Dhaka Medical college hospital. The donation was given in the
presence of the current Shipping Minister Shahjahan Khan.

SOCIAL RESPONSIVENESS

SPL has started renewable power energy business as an alternative source of electricity and SPL
is truly dedicated to improve the present electricity crisis of Bangladesh, aiming both urban and
rural areas.

For providing electricity to the rural areas, SPL has set up sales offices at different ruler areas of
Bangladesh for selling solar house systems (SHS). SHSs are sold and installed through micro
credit program under the guidance of IDCOL (Infrastructure Development Company Limited).
At present SPL has 153 sales offices and number of SHS more than one thousand.
 MANAGEMENT OVERVIEW

Chairman

Managing
Director

Director Director

Department Department
Heads Heads

Department Department
COO COO
Manager Manager

Production Produciton
Supervisor Supervisor
Manager Manager

Employees Employees Employees Employees

Figure: Management Hierarchy

EXTERNAL ENVIRONMENTAL FACTORS INFLUENCING THE
COMPANY

 Economy: The changes in the world economy are considered to one of the most critical
factors affecting SPL’s different business units. Being a service oriented company, it is
difficult for SPL to cope with the current political instability and chaos. This not only
results in higher transportation costs but also a high level of risk in delivering the heavy
machineries and equipments. Furthermore, currency fluctuations also hamper SPL’s
business activities.
 Finance: The country’s financial downturn seems to be affecting SPL’s business. The
lack of finance leads to lower investments which intern restricts the company’s short term
expansion plans.
 Weather: All the products are not suitable for every weather conditions. Heavy rainfalls
and extreme weather conditions effects SPL’s port handling services and heavy
equipments delivery. During harsh weather conditions solar panels require replacements
and high maintenance.
 Infrastructure: Poor road and traffic conditions leads to delayed delivery of goods and
machinery. Constant load shedding leads to higher manufacturing cost.
 Laws: Changes in the laws and government regulations can directly affect the
environment or communication that are beyond the company’s control and could have a
direct impact on the business.
 HUMAN RESOURCE MANAGEMENT

Motivational Rewards: SPL provides their employees three kinds of rewards and motivation as
a result their employees get motivated to work more efficiently. Those rewards and motivations
are as described below:

 Financial Reward

 Non-financial Reward

 Other Motivations

Financial Rewards: There are some financial rewards to motivate the employees.
Those are the following-

 Profit sharing: Companies that have profit-sharing programs set aside a percentage of

their profits for employees. SPL believes in motivating the employees through profit
sharing, which means the higher the profits the more money the employee receives. This
in turns makes the employees work harder and smarter because now they have a financial
stake in the company.
 Raises: It’s a once-a-year event greatly anticipated by employees. Employees receives
annual raises depending on their performance evaluation and philosophy of the company.
 Bonuses: Bonuses occur one time per year or at a certain number of predetermined times
each year. It attracts the employees to work hard for SPL. SPL also provide bonuses to
employees in achieving certain goals and also provides bonuses during certain festivals
and occasions. This allows the workers to be more productive and efficient.
 Non-Financial Rewards: There are some non- financial rewards to motivate
employees. Those are following-

 Appreciation of Work Done: SPL managers always appreciate the employees for their
working success. It inspires them to do something new always.
 Competition: SPL always try to arrange inter organization competition to find out
talents. SPL believes in selecting an employee of the month from each department.
Selected employees are given certificates reflecting their excellence of performance.
 Job Enrichment: SPL management always appreciates the employees for their brilliant
success. The company also believes in giving certain employees more responsibilities
regarding their work, which in turn makes the employees feel more wanted and they
develop a sense of belongingness.

Other Motivations:

 Arranges annual get together and picnics.

 Salary Increments based on Inflation.
 MOTIVATIONAL CHALLENGES THE COMPANY IS FACING

Every company faces motivational challenges at a stage. SPL is also facing the same challenges
that other companies are facing. Those challenges are following:

 Increasing number of employees and their salaries: To give a good salary and
compensation package for all the employees is a great task. It also motivates the
employees to work more. So this is another motivational challenge they are facing.

 Employee depression: There are many causes that make the employees depressed to
do work. So SPL is trying to make them aware about their work and mentoring them
to solve the problem.

 Working hour: Sometimes long working hours make the employees depressed and
turn out the employees from the organization. So, the employees also cause problems
in the organization structure.

 Working environment: The Company is trying to improve their working environment

to cope up with the change.
 SWOT ANALYSIS

SWOT defines a company’s internal strengths and weaknesses and external opportunities and
threats. The SWOT analysis of SPL is given below:

STRENGHTS:

 High Sales Growth: Over the past few years the company has experienced a significant
increase in turnover. In the year 2013, the company gained over BDT 1400 million
compared to 2012’s BDT 949 million. This proves the company has a prospective future
as far as sales growth is concerned.

 Diversified Product Line: SPL holds a wide variety of products and services which
minimizes the company’s risks.

 Strong customer base: SPL provides construction equipments and generators to major
construction companies and provides solar panels and LEDs to other businesses.

 Technological Dependence: SPL strongly depends on technology, they run their

company with the support of technology. This is not only efficient but this also puts a less
amount of pressure on the workers.

 Service Experience: SPL has been providing port handling services since 2004. Till
2013, SPL handled 450013000 TEUs containers and 2376 container vessels in the 2
terminals of CPA. In other words, SPL is very experienced and highly efficient in its port
handling services.
WEAKNESSES:

 Complex management system: As SPL maintains a wide variety of management system

it turns out to be difficult and complex to organize and manage all the different
departments. Managing the work and performance of 2000 employees requires huge time
and effort.

 Difficulty in allocating funds: Allocating funds to the different departments turns out to
be difficult due to which certain departments may lack the required funding.

 Highly dependent on imports: Raw materials for solar panels, LEDs and heavy
machineries are all imported from foreign countries so a price rise in the foreign market
may lead to expensive imports, thus increasing the company’s costs.

 Lack of product awareness: The majority of the customers are not aware about the
benefits of power saving technologies like solar panels and LEDs. Due to the products
being expensive many customers may not be willing to buy them.

OPPORTUNITIES:

 Expanding to B2C service: As currently SPL is engaged in B2B trades, the products
such as LED light bulbs and solar panels are not sold in retail stores. So in the long run
the company can expand its market share by retailing directly to the final consumers.

 Globalization: SPL is currently growing at a very high rate which gives it the
opportunity to expand in foreign markets in the near future. Exporting its local made
LEDs and solar panels to foreign markets might prove to be very prospective for SPL.

 Expansion: The long term target of SPL is to expand its local manufacturing factories
(solar, battery, LED).

 Improving Electricity shortage of Bangladesh: SPL started renewable power energy

business as an alternative source of electricity to eliminate the present electricity crisis of
Bangladesh. Selling solar house systems through micro credit program is a growing
opportunity as a large number of rural areas lack electricity.
 THREATS:

 Improvement in National Grid: If Bangladesh turns out to produce or import more

electricity then there might be shortage in the demand for solar panels. Which would in
turn, reduce the sale of solar panels.

 Government regulations: Since SPL is highly dependent on imports, an increase in

government regulations like taxes or tariffs will increase the company’s costs which may
lead to lower sales and profits.

 Rivalry: As this is a growing market, new investors might be attracted to invest in similar
projects due to which SPL might have increased competition in the near future.

THEORY IMPLEMENTATION:

Product falls in Maslow’s Need Hierarchy;

Maslow's hierarchy of needs is a description of the needs that motivate human behavior. In

1943, Abraham Maslow proposed five different kinds of human needs, beginning with the most
basic: survival. Physiological needs, such as food and shelter, are followed by needs related to
safety.

SPL’s products fall under the safety needs of Maslow’s Need Hierarchy. Products such as LEDs
and Solar panels helps save electricity. This is massively benefitting the rural areas as they
consume less electricity. Backup generators are also essential in times of blackouts and load-
shredding, especially in urban areas where the crime rates are high. The availability of electricity
helps make the people feel safe and secure during such times.
The strategy that the company follows from McGregor’s Theory X or Y and
the cause:
The company is following the Theory “Y”. The reason is given below-

This “Y” theory reflects a participative style of management that is de-centralized. It

assumes that employees want to work, are self-motivated and creative, and enjoy working
with greater responsibility. It assumes that workers:

 Willingly take responsibilities and are focused towards achieving the goals.

 Seek and accept responsibility and do not require much guidance and supervision.

 Considers work and task as a natural part of life and solve work problems creatively.

Example:

SPL believes in job enrichment where the employees are entrusted with more work. This
is done because the management feels that employees are happy to share the work load
and help the company. Moreover employees willingly participate in handling more tasks
and accomplish the work efficiently.

CONCLUSION AND FUTURE PROSPECTS OF THE COMPANY

Conclusion:

Firstly, a grand thanks to our course instructor, Ms.Nahar. We had a lot to know about
Saif Powertec Limited (SPL). We acquired immense knowledge about SPL, its Stock
market share, management system, product and services and such others. SPL is a rapidly
growing company and is taking up a big chunk of market share very quickly. SPL has
been showing signs of great potential as it has been consistently performing well leading
to high rise in turnover. Being engaged in a diversified product and service line gives
SPL an advantage over the market competitors.
Future Prospects:

 SPL aims at becoming the most trusted and well-known name in the Bangladesh
renewable energy sector.

 Produce zero maintenance hassle free batteries for cars and industry machineries.

 Entering the foreign market and acquiring foreign market shares.

 Only 10% of the population of Bangladesh use LED light bulbs so SPL is
determined to raise consumer awareness about how LED light bulbs save 70%
energy. Therefore, in the near future SPL anticipates a rise in the demand for LED
bulbs.

 Introducing retail outlets for directly selling products to consumers.