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Department of Organization Strategy &
leadership
Faculty of Business Studies
University of Dhaka
Assignment on
Industry and Company Analysis
Course Code: 201
Course Title: Strategy Fundamentals
Date of submission: 06/01/2021
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Submitted by:
Group number 5
Submitted to:
Dr. Mohammad Shariat Ullah
Professor
Department of Organization Strategy and Leadership
University of Dhaka
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Serial
no.
Contents
sPage
no.
1
Group list
2
3
3.1
3.2
Letter of transmittal
Industry Analysis
Industry Name
Industry Definition
4
INDUSTRY ANALYSIS
4.1
4.2
OPPORTUNITY AND THREATS
PORTER'S FIVE COMPETITIVE FORCE MODEL
5
COMPANY ANALYSIS
5.1
5.2
5.3
Company Name
Company Overview
The Value Chain
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1. Group list
1. Mohammad Kamal
ID: OSL-ZH-28
2. Hasan Ahamed Raju
ID: OSL-SM-33
3. Mazharul Islam Shuvo
ID: OSL-MM-47
4. Nazmul Alom
ID: OSL-SM-37
5. Abu Taleb
ID: OSL-ZR-40
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2. Letter of Transmittal
Date: 25.12.2020
Dr. Mohammad Shariat Ullah
Professor
Department of Organization Strategy and Leadership
University of Dhaka
Subject: Letter of transmittal.
Dear Sir,
With due respect, we are the undergraduate students of BBA, OSL 3rd batch have
ready a term paper on Industry and Company Analysis.
As we are in learning curve, this term paper has enabled us to gain insight into the
core fact of Industry and Company Analysis. So, it becomes an extremely
challenging and interesting experience. Thank you for your supportive
consideration for formulating the task. Without your inspiration this would have
been an incomplete one.
Lastly, we would be thankful once again if you please give your judicious advice
on effort.
Yours sincerely,
Group no. 5
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3. INDUSTRY:
An industry can be defined as a group of companies offering products or services
that are close substitutes for each otherthat is, products or services that satisfy
the same basic customer needs.
3.1 OUR INDUSTRY:
Steel Industry.
3.2 INDUSTRY DEFINITION:
Steel industry is an established and growing industry in Bangladesh.
Predominantly based in the port city of Chittagong, the industry has
emerged as a major contributor to the national economy. According to the
experts, the growth of steel industry in Bangladesh is mainly induced by
the rapid expansion of the country's shipbuilding and real estate sector, as
well as the major investments in various infrastructure projects
throughout the country.
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4. INDUSTRY ANALYSIS
4.1 OPPORTUNITY AND THREATS
OPPORTUNITIES
1. Huge scope to increase market share through acquisition.
2. New types of steel products.
3. International scope.
4. Booming Bangladeshi economy.
THREATS
1. New competitors.
2. Probability to lose skilled employees.
3 High commission given by the competitors.
4. Power crisis.
4.2 PORTER'S FIVE COMPETITIVE FORCE MODEL
A. Risk of entrants of potential competitors
Risk of entrants of potential competitors is medium due to
1. High capital requirement.
2. High scale economics.
3. Favourable government policy.
4. Low product differentiation.
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B. The bargaining power of buyer
The bargaining power of buyer is low due to
1. Low cost of switching suppliers
2. Firm’s effort to produce raw materials.
C. The bargaining power of buyers
The bargaining power of buyers is moderate due to
1. The products are used in the wide range of industries such as gas, oil and
Automobile, shipping, consumer power and durables etc. But the number
of reliable sellers is comparatively low.
2. The products are more or less standardized hence the prices are
competitive
D. Availability of substitutes
Availability of substitutes is medium to low
1. Although usage of Aluminium has been rising continuously in the
automobile consumer durable sectors, it still does not pose any significant
threats to steel as the latter cannot be replaced completely and cost
differential is also very high.
E. Competitive rivalry
Competitive rivalry is low due to
1. Among over 400 active firms in the industry.
2. The top 5 companies serve more than half of the demand.
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5. COMPANY ANALYSIS
5.1 Our company:
Bangladesh Steel Re-Rolling Mills (BSRM)
5.2 Company overview:
BSRM Steels Limited is mainly engaged in the manufacture and sale of steel
products. It offers BSRM Xtreme bars, deformed bars, structural sections, and flat
bar springs steel products, as well as offers M.S. billets. The company was
established in 1952 and is headquartered in Chittagong.
Company Analysis BSRM First of all we have to know competitive advantage.
Competition advantage is when a company has greater profitability than the
average profitability of all companies in its industry over its rivals. BSRM
competitive advantage: - As a market leader BSRM steel mills have several
competitive advantages that help the company to make better market position
and profit in the current market. (1) Brand recognition (2) Low-cost high-grade
product (3) Strong product distribution (4) Strong marketing line-up (5) Current
business model BSRM has 61 years’ experience exclusively in steel marketing fully
automatic steel Re-Rolling mill in the country. Now what are the resource quality
for analysing. We have to follow VRIO framework. Here, V-Stand for value R-Stand
for rarity I-Stand for inimitability O-Stand for organization VRIO framework by
which manager could determine the quality of resources. Firstly, the company’s
resources valuable in the sense that they enable the enterprise to exploit
opportunities and counter threats in the external environment. Secondly, those
resources are rare. Thirdly the valuable and rare resources are not inimitable to
other country. Finally, the company organized and managed in a way that enable
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it to exploit its rare, valuable and inimitable resource and capture the value thus
produce.
5.3 THE VALUE CHAIN
A. Primary activities:
Primary activities of BSRM are those activities, directly involved in the conversion
process of basic raw materials into final output/products including the receipt of
basic raw materials from suppliers marketing of outputs /products to the
customers.
They are grouped into two types of activities related to product and market.
Product related activities are the activities performed by the organisation to add
value to the product and services itself. Market related activities are the activities
performed by the organisation to transfer the finished product or services to the
customers.
Primary activities broken down into four functions: research and development,
production, marketing and sales and customer service.
B. Research and development:
Research and development (R&D) refer to the design of BSRM products and
production processes.
C. Production:
Production refers to the creation of a good or service. These include raw materials
handling and processing (receiving and handling of major raw materials like
coking coal, iron ore, fluxes, boiler coal etc. Crushing, lump ore, crushing and
screening) making of coke, sinter, lime and calcined dolomite, pitch bonded
magnesia bricks, production, of iron, steel, wire rods, TMT bars rounds, squares,
structural (angels, channels and beams), blooms, billets etc. and preparation and
repair rolls.
D. Marketing and sales:
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These include product management, price management, placement(distribution)
management, promotion management, domestic sales (project sales, actual user
sales, retails sales), export sales, sales of special steel, by product sales, planning
and despatch, pricing and policy, contracts, customer relations management etc.
E. Customer service:
These include commercial items, quality aspects, delivery aspects, pre/post sales
contact, and complaint settlement procedure.
F. Support activities:
Support activities ate those activities, not directly involved in the conversion
process but support to take place primary activities in their functions
G. Materials management (Logistics):
The materials management includes vendor development, purchase
management, logistics management, and store management.
H. Information systems:
These includes quality assurance and technology development research and
development, processes automation etc.
I. Human Resource Management:
These include corporate coordination (Manpower Planning, recruitment,
executive establishment, rules and policies, welfare, Parliament cell).
Human resource -non works (human resource development, non-works
personnel, mines, industrial relations), corporate social responsibility, medical,
town administration, Administration (general administration, law, hospitality).
J. Company infrastructure:
Company infrastructure is the companywide context within which all the other
value creation activities take place. This includes organizational structure, control
systems, incentive systems, and organizational culture.
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Unformatted Attachment Preview

Department of Organization Strategy & leadership Faculty of Business Studies University of Dhaka Assignment on Industry and Company Analysis Course Code: 201 Course Title: Strategy Fundamentals Date of submission: 06/01/2021 Submitted by: Group number 5 Submitted to: Dr. Mohammad Shariat Ullah Professor Department of Organization Strategy and Leadership University of Dhaka Serial no. Contents 1 Group list 2 Letter of transmittal 3 3.1 3.2 Industry Analysis Industry Name Industry Definition 4 4.1 4.2 INDUSTRY ANALYSIS OPPORTUNITY AND THREATS PORTER'S FIVE COMPETITIVE FORCE MODEL 5 5.1 5.2 5.3 COMPANY ANALYSIS Company Name Company Overview The Value Chain sPage no. 1. Group list 1. Mohammad Kamal ID: OSL-ZH-28 2. Hasan Ahamed Raju ID: OSL-SM-33 3. Mazharul Islam Shuvo ID: OSL-MM-47 4. Nazmul Alom ID: OSL-SM-37 5. Abu Taleb ID: OSL-ZR-40 2. Letter of Transmittal Date: 25.12.2020 Dr. Mohammad Shariat Ullah Professor Department of Organization Strategy and Leadership University of Dhaka Subject: Letter of transmittal. Dear Sir, With due respect, we are the undergraduate students of BBA, OSL 3rd batch have ready a term paper on Industry and Company Analysis. As we are in learning curve, this term paper has enabled us to gain insight into the core fact of Industry and Company Analysis. So, it becomes an extremely challenging and interesting experience. Thank you for your supportive consideration for formulating the task. Without your inspiration this would have been an incomplete one. Lastly, we would be thankful once again if you please give your judicious advice on effort. Yours sincerely, Group no. 5 3. INDUSTRY: An industry can be defined as a group of companies offering products or services that are close substitutes for each other—that is, products or services that satisfy the same basic customer needs. 3.1 OUR INDUSTRY: Steel Industry. 3.2 INDUSTRY DEFINITION: Steel industry is an established and growing industry in Bangladesh. Predominantly based in the port city of Chittagong, the industry has emerged as a major contributor to the national economy. According to the experts, the growth of steel industry in Bangladesh is mainly induced by the rapid expansion of the country's shipbuilding and real estate sector, as well as the major investments in various infrastructure projects throughout the country. 4. INDUSTRY ANALYSIS 4.1 OPPORTUNITY AND THREATS ➢ OPPORTUNITIES 1. Huge scope to increase market share through acquisition. 2. New types of steel products. 3. International scope. 4. Booming Bangladeshi economy. ➢ THREATS 1. New competitors. 2. Probability to lose skilled employees. 3 High commission given by the competitors. 4. Power crisis. 4.2 PORTER'S FIVE COMPETITIVE FORCE MODEL A. Risk of entrants of potential competitors Risk of entrants of potential competitors is medium due to 1. 2. 3. 4. High capital requirement. High scale economics. Favourable government policy. Low product differentiation. B. The bargaining power of buyer The bargaining power of buyer is low due to 1. Low cost of switching suppliers 2. Firm’s effort to produce raw materials. C. The bargaining power of buyers The bargaining power of buyers is moderate due to 1. The products are used in the wide range of industries such as gas, oil and Automobile, shipping, consumer power and durables etc. But the number of reliable sellers is comparatively low. 2. The products are more or less standardized hence the prices are competitive D. Availability of substitutes Availability of substitutes is medium to low 1. Although usage of Aluminium has been rising continuously in the automobile consumer durable sectors, it still does not pose any significant threats to steel as the latter cannot be replaced completely and cost differential is also very high. E. Competitive rivalry Competitive rivalry is low due to 1. Among over 400 active firms in the industry. 2. The top 5 companies serve more than half of the demand. 5. COMPANY ANALYSIS 5.1 Our company: Bangladesh Steel Re-Rolling Mills (BSRM) 5.2 Company overview: BSRM Steels Limited is mainly engaged in the manufacture and sale of steel products. It offers BSRM Xtreme bars, deformed bars, structural sections, and flat bar springs steel products, as well as offers M.S. billets. The company was established in 1952 and is headquartered in Chittagong. Company Analysis BSRM First of all we have to know competitive advantage. Competition advantage is when a company has greater profitability than the average profitability of all companies in its industry over its rivals. BSRM competitive advantage: - As a market leader BSRM steel mills have several competitive advantages that help the company to make better market position and profit in the current market. (1) Brand recognition (2) Low-cost high-grade product (3) Strong product distribution (4) Strong marketing line-up (5) Current business model BSRM has 61 years’ experience exclusively in steel marketing fully automatic steel Re-Rolling mill in the country. Now what are the resource quality for analysing. We have to follow VRIO framework. Here, V-Stand for value R-Stand for rarity I-Stand for inimitability O-Stand for organization VRIO framework by which manager could determine the quality of resources. Firstly, the company’s resources valuable in the sense that they enable the enterprise to exploit opportunities and counter threats in the external environment. Secondly, those resources are rare. Thirdly the valuable and rare resources are not inimitable to other country. Finally, the company organized and managed in a way that enable it to exploit its rare, valuable and inimitable resource and capture the value thus produce. 5.3 THE VALUE CHAIN A. Primary activities: Primary activities of BSRM are those activities, directly involved in the conversion process of basic raw materials into final output/products including the receipt of basic raw materials from suppliers marketing of outputs /products to the customers. They are grouped into two types of activities related to product and market. Product related activities are the activities performed by the organisation to add value to the product and services itself. Market related activities are the activities performed by the organisation to transfer the finished product or services to the customers. Primary activities broken down into four functions: research and development, production, marketing and sales and customer service. B. Research and development: Research and development (R&D) refer to the design of BSRM products and production processes. C. Production: Production refers to the creation of a good or service. These include raw materials handling and processing (receiving and handling of major raw materials like coking coal, iron ore, fluxes, boiler coal etc. Crushing, lump ore, crushing and screening) making of coke, sinter, lime and calcined dolomite, pitch bonded magnesia bricks, production, of iron, steel, wire rods, TMT bars rounds, squares, structural (angels, channels and beams), blooms, billets etc. and preparation and repair rolls. D. Marketing and sales: These include product management, price management, placement(distribution) management, promotion management, domestic sales (project sales, actual user sales, retails sales), export sales, sales of special steel, by product sales, planning and despatch, pricing and policy, contracts, customer relations management etc. E. Customer service: These include commercial items, quality aspects, delivery aspects, pre/post sales contact, and complaint settlement procedure. F. Support activities: Support activities ate those activities, not directly involved in the conversion process but support to take place primary activities in their functions G. Materials management (Logistics): The materials management includes vendor development, purchase management, logistics management, and store management. H. Information systems: These includes quality assurance and technology development research and development, processes automation etc. I. Human Resource Management: These include corporate coordination (Manpower Planning, recruitment, executive establishment, rules and policies, welfare, Parliament cell). Human resource -non works (human resource development, non-works personnel, mines, industrial relations), corporate social responsibility, medical, town administration, Administration (general administration, law, hospitality). J. Company infrastructure: Company infrastructure is the companywide context within which all the other value creation activities take place. This includes organizational structure, control systems, incentive systems, and organizational culture. Name: Description: ...
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