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North South University

Course : MGT489, Sec: 9


Submitted to: Dr. Md Shahedul Alam (Shl)
Submitted by:
Name

ID

Eshrat Farzana Eshika

111 0772 030

Forhad Alam Sadi

08 3198 030

A.K.M Monjur Morshed

103 0705 530

Mohammad Toufique

112 0407 030

Nishat Shaoli Islam

113 0542 030

Sajeed Sarwar

121 0280 030

Mahfuj Alam Morshed

121 1097 030

Topic
Report on Beximco Textile Limited
Industry Segment

Executive Summary
Beximco is one of the largest and established textile companies in Bangladesh from the very
beginning it has invested on the garments sectors. In Bangladesh, RMG industry is one of the most
promising one to developing national growth. Bextex is one of the garments companies of the
Beximco group. In Baximco there are 20 lines with the production capacity of 20,000 units per
day. Bextex has advanced machineries, skillful workers and efficient management teams. Bextex
has built up the cost leadership in the market. It is very much focused in its raw materials and its
quality. They always try to provide their products at reasonable prices. They always provide the
better quality output to the customers at more desirable prices than its competitors. The company
has got the cost leadership for a longer period of time. The factory is situated at the EPZ, Savar
and the head quarter is in the Gazipur. The Bextex has strong partnership with the world class
brand like Wal-Mart, JC Penny, and Target etc. Bextex is providing them quality products in
cheaper prices than its competitors. Thus they have a strong sustainable relationship. Moreover,
when they dont have any order from the outside, the factory produces products for Yellow
which is one of the clothing brands of the Beximco itself. The RMG industry of Bangladesh will
have higher growth and higher profitability in future. As the Beximco Fashion Limited is
producing at its highest operating capacity, it can increase its line so that it can produce more and
earn more profit. Bextex is financially a solvent company. Though, they deliberately delay on the
payment of the labors for this reason the rise of the strike. For this, it can build bad impress to the
foreign buyers about them and sometimes they loss their contracts. So, to avoid those problems
they should pay their workers in time. And to stop further working unrest within the company
itself, it can initiate effective yet compatible incentive plans and appraisals to make sure that its
services are delivered at optimum and therefore keep the status intact. The competitors of
Bangladesh like India, China, Thailand, Indonesia and etc. are getting help from their government
to attract the foreign buyers. So the Bangladeshi government should take these sort of action to
pull the foreign buyers. Thus the RMG sector of the Bangladesh can grow bigger and become
global leader in the garments industry.

Contents
Introduction ................................................................................................................................................... 1
Global Industry Structure .............................................................................................................................. 2
Garments Industry..................................................................................................................................... 2
Global Sales .............................................................................................................................................. 3
Level of Concentration ............................................................................................................................. 5
Global Industry Issues................................................................................................................................... 5
Child Labor ............................................................................................................................................... 5
Wage ......................................................................................................................................................... 6
Technology ............................................................................................................................................... 6
Working Hours.......................................................................................................................................... 6
Environmental Issues ................................................................................................................................ 7
Bangladesh in Global Context ...................................................................................................................... 7
Safety Issues.............................................................................................................................................. 7
Rights of Workers ..................................................................................................................................... 8
Cheap Labor Force.................................................................................................................................... 8
Living Wage.............................................................................................................................................. 8
Gender Discrimination .............................................................................................................................. 9
Analysis ....................................................................................................................................................... 10
Conclusion ................................................................................................................................................... 11
References .................................................................................................................................................. 12
Research Method ........................................................................................................................................ 13

Introduction
Garments industries are one of the vital industries which have the effect of the growth on the
economy. It helps the country hugely to earn money from this sector and therefore also helps to
improve the total well-being of the people. Certain countries get excited about the import and
export on the products which usually are mainly cloths. Mainly the developing countries will be
the exporters and the developed countries will be the importers. Therefore this can be a huge source
for the developing countries to earn money and make their economy grow rapidly. It is also
beneficial for the developed countries simply because it becomes possible to avail the merchandise
to their customers at a much cheaper pace. Therefore it is usually a win-win situation for the
countries. Countries just like India, Bangladesh, China and Taiwan, Pakistan, Tanzania are some
of the established garments industry that export their products to Europe and USA. Through a
contract they receive negotiation for making the merchandise most for them are incredibly popular
brands which are actually made in this developing countries and are also sold there. However the
garments industries, although has boosted the economys welfare, conversely has designed many
environmental issues inside countries as well. The factories create much pollution, and also the
developing countries will not be much careful on the working condition and salary on the workers
so they are even huge critique for industry like this. Moreover in the developing countries the
political conditions are usually unstable most of the time, so it is not very much possible to meet
every days target to offer the delivery within time and because of these constraints many famous
US brands cancelled the contracts to some developing countries. These are the supreme threat for
the industry as it can lower the income of that particular developing state. Every industry has its
opportunities and threats to manage so it is actually nothing new for garments industry too.
Overcoming all the down sides and to find it in a broader perspective the outfits industry has
contributed hugely on earth economy.

As for Bangladesh, the readymade garments industry goes about as the foundation of our economy
and as an impetus for the improvement of our nation. It is the main remote cash acquiring area of
Bangladesh, on which budgetary division is all that much ward upon. This industry is a 100% fare
situated industry, sending out different articles of clothing like shirts, women dress, shorts,
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trousers, and others, particularly in woven pieces of clothing and knitwear, for U.S.A, U.K, and
other European nations.
The "Made in Bangladesh" tag has brought glory for Bangladesh, making it a prestigious brand
over the globe. Bangladesh market which was once termed an "unlimited bushel" has now turned
into a "crate brimming with marvels." The nation, with its constrained assets, has been keeping up
a 6% yearly normal Gross domestic product development rate and has realized wonderful social
and human advancements. It is currently step by step on its way from being a LDC to a center pay
nation.
The huge achievement of readymade article of clothing fares from Bangladesh throughout the most
recent two decades has made this conceivable. The part has surpassed the most idealistic desires.
Today the attire send out segment is a multi-billion-dollar assembling and fare industry in the
nation. The general effect of the readymade article of clothing fares is surely a standout amongst
the most noteworthy social and monetary advancements in contemporary Bangladesh.
With more than one and a half million ladies specialists utilized in semi-talented and gifted
occupations delivering dress for fares, the advancement of the attire send out industry has had
extensive ramifications for the general public and economy of Bangladesh.

Global Industry Structure

Garments Industry

Bangladesh RMG sector starts its journey in 1950 in the Western world. In 1974, Multi Fiber
Agreement (MFA) took place to control RMG products from developing nations to developed
nations. This contract imposed 6% export rate which increases every year from a developing
nations to a developed nations (Fairwear.org, 2015).

Global Sales

RMG (Ready-made Garments) could be the leading sector in Bangladesh regarding foreign
currency earnings. Bangladesh is the second largest garments exporter close to china. It has
contributed 80% of entire export earnings. In Bangladesh there are 4 million persons, working in
around 6000 garments industrial facilities and approximately 80% people of which are female. In
FY (fiscal year) 2012-2013 Bangladesh achieved the export benefit 21b (billion) USD (21515.
73m (million) USD). In FY 2013-2014 your strategic target seemed to be 24147. 31m USD by
export marketing bureau of Bangladesh, however in July13-April14 it extends to 19970. 02m
USD that may be 2. 72% more compared to strategic target (19441m USD) do your best. RMG
sector features set a targeted to earn 30b USD by 2015 as well as 50b USD simply by 2021. Low
labor cost, efficient worker, different organizational help and government support will be the main
strengths on this sector. In FY 2012- 2013 Bangladesh exported 1972. 89m USD of shirts, 5185.
48m USD of trousers, 2634. 28m USD of jackets as well as 5143. 22m USD of t-shirts. The major
importers are EU, USA and Europe. Knit garments are generally exported to 148 nations around
the world and woven clothes are exported to 132 countries. Your major buyers are generally WalMart, Target, Grades and Spencer, Tesco, Levis, Zara, JC Dime, GAP, C & Some sort of,
UNIQLO etc. (Hussein, 2015)

Table-1: Major market of RMG industry


(Tk. in million)
Country

Amount

Belgium

3812.00

Canada

6218.00

France

13078.00

Germany

27008.00

India

80.00

Italy

22.00

Netherlands

10619.00

Sweden

3058.00

Turkey

2681.00

U.K.

15411.00

U.S.A

43368.00

Source: Bangladesh bank

Here as we can see U.S.A. is the largest market for RMG industry with Tk.43368million turnover.
Followed by Germany with Tk.27008million turnover, third U.K. with approximate
Tk.15000million turnover. After that France and Netherlands respectfully fourth and fifth position.
Table- 2: Region-wise Share of RMG Export

Year

Export
Share
USA

Export
to

Combined

Export

Share

of

Share

European

USA & EU

Other

Countries

(%)

Countries

Share

to

of

(%)
2001-2002

42.67

55.43

98.10

1.90

2002-2003

38.02

57.12

95.14

4.86

2003-2004

28.64

65.42

94.06

5.94

2004-2005

30.64

64.24

94.88

5.12

2005-2006

33.67

49.77

83.43

16.57

Source: Export promotion Bureau

Level of Concentration

Nevertheless, the income of clothing has enhanced hugely during the past decades and also the
garments sectors tend to be increasing rapidly within the developing countries next the developed
countries as the labors are much cheaper within the developing countries next the developed
places. Also, the financial shows are much better and the degree of concentration just for this
industry is very high as you will find high variety of competitors within the everywhere in the
world giving the cheapest work cost which will help the product for being less connected with
cost.

Global Industry Issues

Child Labor
Child labor has become a major issue in the garment industry worldwide. The international
guideline clearly states that there shall be no forms of labor participation for children who are
between 15-18 years old. Around the world, an estimated 215 million young boys and girls are
employed as child labors. Around 7% of those are engaged in the service of garment and textile
manufacturing. Many international organizations have shown concerned that child labor can be
hidden in supply chains. Bangladesh, China, Vietnam, and India are the biggest players in the
garment industry. They are closely monitored by the ILO. One famous case is about the popular
shoemaker Nike has been accused of using child labor to make soccer balls in Pakistan, however,
Nike has denied the claims urging the company has no control over subcontracted factories
(fairwear.org, 2015).

Wage

Low wage is one of the most important factor which drives the international buyers to make orders.
China is the worlds largest exporter of manufactured garments mainly because the workers are
willing to work at a cheaper rate. The minimum wage in China is $204, which is increasing
steadily. Many have even started to comment this is the end of cheap labor in China (dhakatribune,
2013).
The table shows monthly wage of the following countries:
Bangladesh- $65
India- $113
Pakistan- $1118
Vietnam- $120

Technology

So far, human labors dominate the garment industry around the globe. A research firm Gartner
Inc. has analyzed that by 2030, 90% of jobs will be replaced by smart machines. An Atlanta based
tech Company called SoftWear Automation Inc. promises to transform the apparel industry by
automating production with the help of robots. The robots they made can do basic tasks like sewing
around the button holes. They still lack other skills which only human can do. If such robots are
commercialized then surely a lot of garment workers around the world will find themselves losing
their jobs which will be harmful for the whole community (WSJ, 2015)

Working Hours

In order to meet the excessive demands of the orders, workers are often have to work for long
hours as overtime. In Bangladesh, many workers might have to work for 14-16 hours shifts each
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day and at worse, often six days a week. Workers have to work for more than 10 hours or more in
Pakistan. This overtime is compulsory or forced in many places. This is where many workers get
into conflicts with their employers because sometimes they are being underpaid or they are just
too tired to work.

Environmental Issues

Different fabrics have a number of characteristics to harm the environment. Nylon and polyester
are made from petrochemicals and these synthetics are non-biodegradable. Cotton production
involves intense pesticide use which is very harmful. Also, agricultural lands are taken up for
cotton production which is profitable. This affects local farmers because they are unable to grow
crops. Also a number of production processes cause pollution to the environment such as dyeing.
Dyeing uses a lot of water and if garments fail to treat the unfixed dye then they can end up
polluting rivers (Greenchoice.org, 2015).

Bangladesh in Global Context

Safety Issues

Bangladesh has suffered tremendous setbacks due to the tragedy of Tazreen Fashion and Rana Plaza.
Workplace safety has become the number one priority across the garment industry. Government,
international clients, employers, and other pressure groups are working to ensure international standard
workplace safety. Much thanks to the cancellation of GSP by USA. GSP is a facility given to the developing
nations by developed nations to improve their exports. This facility has been cancelled by the Obama
administration after a serious of factory accidents took place in Bangladesh. To enjoy this benefit again, the
garment industry of Bangladesh has to do more to improve the working environment.

Rights of Workers

Bangladesh employs over 4 million workers in the garment industry. This is the biggest bread earner for
the people of Bangladesh, bringing around $215 billion in revenue. However, little importance is given to
these workers. Little is known to them about their rights also. They must be paid minimum wage which is
around $65. They must be allowed to take leave during holidays or sickness. They have the right to enjoy
facilities such as bonuses, compensation, medical facilities etc. Trade unions must be encouraged across
the whole industry so that there is someone to represent the labor force. Workers have the right to protest
if they are working in an unsafe environment. These things must be taken into account because foreign
clients now make factory inspections to see whether the factories are abiding the laws.

Cheap Labor Force

Bangladesh is the second largest apparel exporter in the world, next to China. The labor force consists of 4
million people. The other key players are India and Vietnam. The minimum wage is about $65 in
Bangladesh compared to Chinas $204. Productivity has always been a major concern for the Bangladeshi
manufacturing sector. On average, a Bangladeshi worker requires more time and the same amount of money
to produce a similar quantity of products. Also, one of the reason for being so cheap is because lower
standard of living in Bangladesh. Whereas, the standard of living is rising at a faster rate in China. More
and more international brands are trying to minimize their costs by moving their production to Bangladesh
because of this purpose. [5]

Living Wage

The minimum wage in Bangladesh does not amount to a living wage. Such low wage may lead to
catastrophic issues such as workers working for extremely long and exhausting hours, suffering from
malnutrition, bad quality of life etc. This inequality between the production and retail sections of the
garment industry is ever-growing. To offset the rise in cost of production, big companies such as Wal-Mart
and H&M must be willing to contribute otherwise the owners may have to pay from their own pockets.
(Living Wage Now, 2015)
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Gender Discrimination

The discrimination of women in the garment factories is commonplace. A vast majority of garment workers
are mostly women. It is said to be women are offered jobs at lower positions, or even sometimes they are
not paid equal to the men. Such matters are not taken lightly by the international community. This is not
happening in Bangladesh only, but also in other countries such as Indonesia. Women are frequently
subjected to verbal and physical abuse. If they complain managers threaten them with firing. Unlike men,
women need a lot of safety precautions such as travelling back home after dark, a safe housing for them
and employers must ensure womens rights are met cautiously.

Analysis
Bangladeshi economic growth is growing faster than past. Garments and Clothing industry, the
Multi Fiber Agreement phase-out will lead to more efficient. The phase may have negative impact
on the economy of Bangladesh but Bangladesh absorbed the shock successfully. Not only this
RMG exports grew significantly both in FY06 and (especially) in FY07. The industry has taken a
large number of steps for this Bangladesh is remains competitive in the industry in this post phaseout period. There are many problems in our garments sectors they can improve their position in
the world map by reducing the overall problems such as management labor conflict, proper
management policy, efficiency of the manager, maintainable time schedule for the product, proper
strategic plan etc. government should take necessary steps to solve the problems. They should
provide some rules and regulation to protect the garments industries, solve the license problem,
quickly loading facility in the port, providing proper environment for the work, keep the industry
free from all kind of political problem and the biasness. They should provide some credit when
they fall. There is a huge opportunity in garments sector for Bangladesh, proper steps will help
them to get a large market in global.

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Conclusion

The Ready-Made Garments (RMG) industry create a better position in the Bangladesh economy.
It is the largest exporting industry in Bangladesh, it helps Bangladesh to develop their economy.
By taking advantage of an insulated market under the provision of Multi Fibre Agreement (MFA)
of GATT, it attained a high profile in terms of foreign exchange earnings, exports, industrialization
and contribution to GDP within a short span of time. The industry plays a key role in employment
generation and in the provision of income to the poor. By this reveluation many poor people get
jobs and made them solvent. To remain competitive in the post-MFA phase, Bangladesh needs to
remove all the structural impediments in the transportation facilities, telecommunication network,
and power supply, management of seaport, utility services and in the law and order situation. The
government and the RMG sector would have to jointly work together to maintain competitiveness
in the global RMG market. Given the remarkable entrepreneurial initiatives and the dedication of
its workforce, Bangladesh can look forward to advancing its share of the global RMG market.

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References
Dhakatribune.com,. 'Wages In The RMG Industry | Dhaka Tribune'. N.p., 2013. Web. 1 Dec.
2015.
Fairwear.org,. 'Child Labor Policy'. N.p., 2015. Web. 1 Dec. 2015.
Greenchoices.org,. 'Green Choices - Environmental Impacts Of Clothing'. N.p., 2015. Web. 1
Dec. 2015.
Hagerty, James. 'Robots Take On More-Elaborate Tasks Amid Worker Shortage'. WSJ. N.p.,
2015. Web. 1 Dec. 2015.
Living Wage Now,. N.p., 2015. Web. 1 Dec. 2015.
Weblog post: Hossain.T. RMG: Leading Earning Sector in Bangladesh. 2015. Retrieved from
http://textilelearner.blogspot.com/2014/07/rmg-leading-earning-sector-in-bangladesh.html
Wikipedia,. 'History Of Clothing And Textiles'. N.p., 2015. Web. 1 Dec. 2015.

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Research Method
For the company and industry report we have interviewed the executives from the Bextex. While
interviewing them we got bellow information.

1. How many products they are using in their product lines?


2. How many workers are working for the Bextex?
3. How many male and female workers are working in Bextex?
4. How many female workers are working in administration?
5. How many male workers are working in production?
6. Who are your target markets?
7. How you are serving them?
8. Do you think the company has any competitive advantage?
9. How you built up your competitive advantage?
10. How many countries you are exporting most?
11. Do you have any loyal international customer?
12. How you are building relationship with them?
13. Do you think this relationship is sustainable for the future?
14. What are the functional level strategies you are following?
15. What are the business level strategies you are following?
16. What are the corporate level strategies you are following?
17. What are the main products you are manufacturing?
18. How you are ensuring the quality of them?
19. Is there any weakness which you guys are trying to overcome?
20. What are the opportunities you can see for the Bextex?
21. What can be the threats for the company?
22. Do you have any buyer in Bangladesh?
23. What is the prediction of you guys about the future of RMG industry?
24. The salary structure is same for both male and female workers?
25. How many children are working here?
26. Are they following the government wage policy?
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27. Is there any government observation here?


28. Are their work place safe and healthy?
29. What steps they took after rana plaza incident?
30. Is there any strike here for wage or job security?

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Thank You Letter


To
Md. Sabbir Newaj Jitu
Assistant Manager

Beximco Textile Ltd. (Yellow)


Subject: Thank you letter.

Respected Sir,

We the students of North South University got the opportunity to visit your company Bextex for
our education purpose. It was a great honor to visit your company and got the opportunity to learn
from you.

Our main reason for visiting is getting knowledge from the corporate world. We believe that your
company certainly gave us to know functional systems and the work procedure of the big
organization like yours.

We would like to thank you for helping us a lot when we went to visit your Bextex and for
providing us enough information which was needed to complete our Report. You and your whole
team were friendly and helpful. The information and the experience provided by is not only helpful
for our project but also helpful for our corporate word in future. Thank you so much for showing
us different things and explaining them to us properly and giving us the accurate information.

Regards,
A.K.M Monjur Morshed, Sajeed Sarwar, Forhad Sadi
Nishat Shaoli Islam, Neev Ayan, Mohammad Toufique
Eshrat Farzana

Students of North South University


Bashundhara, Dhaka.
15

North South University

Course : MGT489, Sec: 9


Submitted to: Dr. Md Shahedul Alam (Shl)
Submitted by:
Name

ID

Eshrat Farzana Eshika

111 0772 030

Forhad Alam Sadi

08 3198 030

A.K.M Monjur Morshed

103 0705 530

Mohammad Toufique

112 0407 030

Nishat Shaoli Islam

113 0542 030

Sajeed Sarwar

121 0280 030

Mahfuj Alam Morshed

121 1097 030

Topic
Report on Beximco Textile Limited
Company Segment

Executive summary
Beximco is probably the largest conglomerates within Bangladesh. It is investing on the major
profitable sectors from the very beginning. One of the profitable sectors within Bangladesh,
RMG industry is probably the most promising one. Beximco Fashion limited is one of the
garments companies in the Beximco group. It has 20 lines using the production capacity
involving 20, 000 units daily. Beximco Fashion Limited has advanced machineries, skilled
workers and efficient management teams. With the aid of those it has generated up a cost
leadership. It maintains a long list of suppliers from which often it gets quality raw materials
at reasonable rates. Thus it provides quality output towards customers at more desirable prices
in comparison with its competitors. The company has got the cost leadership for a longer period
of time. The factory can be found at the EPZ, Savar and the head quarter is at Gazipur. Beximco
Fashion Limited has strong relationships with the world class brands like Wal-Mart, JC Cent,
Target etc. Beximco Fashion Limited is delivering them with excellent products in more
affordable prices than its competitors. Thus they have got a strong eco-friendly relationship.
Moreover, whenever they do not have any order from outside, the factory produces products
for Yellow which is the clothing brands in the Beximco itself and is available to the locals
only. The RMG business of Bangladesh can have higher growth in addition to higher
profitability in the future. As the Beximco Fashion Limited is producing using its highest
working capacity, it can enhance its line so that it can produce more and earn more profit.
Beximco Fashion Limited is monetarily a solvent corporation. However, they intentionally
delay about the payment of the workers that causes the rise in the strike. Moreover, it could
create bad impression towards foreign buyers about them. They can even switch with their
competitors consequently. So, to avoid those problems they should pay their workers in time.
And to keep further operational unrest within the company itself, it can initiate effective yet
works incentive plans and appraisals to make certain its services are delivered at optimum and
for that reason keep the status intact. Additionally, they should increase the distinctive line of
their garments that may bring them an important amount of return, because it is actually
encouraged that a firm expands whenever it's feasible and therefore foster goodwill amongst
its stakeholders.

Table of Contents
Introduction ................................................................................................................................ 3
Overview of the Global Operation and Structure of the Firm ................................................... 4
Strategic Issues Facing the Firm ................................................................................................ 6
Corporate Issues Regarding the Global Context .................................................................... 6
Corporate Issues Regarding the Bangladeshi Context ........................................................... 6
Business Level Issues Regarding the Global Context............................................................ 7
Business Level Issues Regarding the Bangladeshi Context ................................................... 7
Functional Level Issues Regarding the Global Context ......................................................... 8
Functional Level Issues Regarding the Bangladeshi Context ................................................ 8
Analysis...................................................................................................................................... 9
Competitive Advantage .......................................................................................................... 9
Efficiency............................................................................................................................ 9
Quality ................................................................................................................................ 9
Customer responsiveness .................................................................................................... 9
SWOT Analysis of Beximco Textile Limited ...................................................................... 10
Strength ............................................................................................................................. 10
Weakness .......................................................................................................................... 10
Opportunities .................................................................................................................... 10
Threat ................................................................................................................................ 10
Cost Leadership Advantage ................................................................................................. 10
Avoiding the Chasm ................................................................................................................ 11
Quality Control ..................................................................................................................... 11
Competitor Analysis ............................................................................................................. 11
Beximcos Business Model for one Product (Shirt) ................................................................ 12
Customer Segments .............................................................................................................. 12
Value Proposition ................................................................................................................. 12
Channels ............................................................................................................................... 13
Customer Relationship ......................................................................................................... 13
Revenue Stream.................................................................................................................... 14
Key Partners ......................................................................................................................... 15
Key Activities ....................................................................................................................... 15
Cost Structure ....................................................................................................................... 16
Recommendation ..................................................................................................................... 16
Conclusion ............................................................................................................................... 17
1|Page

References ................................................................................................................................ 18
Research Method ..................................................................................................................... 19
Thank You Letter ..................................................................................................................... 20
Appendices ............................................................................................................................... 21
Bangladeshs Share in Global Apparel Export .................................................................... 21

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Introduction
Clothing is one of humans most fundamental needs. Ever since the era of fashion has
started, it has retained the clothes demand high and the people have always tried to reinvent
themselves wearing new clothes of new brands. To fulfill that requirement, many clothing
outfits were established after a while. By that time, some business people have understood the
urge of getting new fashionable clothes to suit their customers fashion statement. Some of the
factories started concentrating on the quality whereas others concern was around the cost
leadership of getting the clothes. Mainly they tried to provide the customers with best quality
clothes at the most cost effective price possible. Moreover, Bangladesh is well known in the
world for providing the high quality RMG products at inexpensive rates. There are several
RMG factories within Bangladesh among which one is Beximco and it is probably the major
factories within Bangladesh, making clothes with the highest quality and cheap value possible.
The Beximco Fashion Ltd. is acknowledged for producing tank top, pants and t-shirts,
etc all types of clothes that are nowadays a necessity in the peoples lives as fashionable clothes
are not a want but a need. The factory not only cares about who wants what regarding clothing,
but they have made sure that while providing people the best clothes, no harm is done to the
Dhaka city. As a result they are situated at the EPZ, Savar along with the head office at Gazipur.
This factory is comprising of 20 lines with a production capacity involving 20, 000 per day.
The main foreign buyers of this factory are the particular Walmart, Target, and many others.
After fulfilling the necessity of foreign purchaser the factory makes use of rest of capacity to
meet the local demand in the brand called Yellow. Beximco has put themselves out there for
the people in a unique way as they have represented them by the name of Yellow to the
common public. However it is a keen juvenile brand which is being sold to the customers,
especially to the youth at the particular Beximco owned stores. Yellow is totally a new brand
name for the people and today it has many creative ideas along with the core masterpiece of all
the needed materials to make clothes. Beximco is rolling out in-house design functions with
teams within Bangladesh and Italy. Also, it has completed partnership with a lot of the worlds
well acknowledged design institutes including Fashion Institute involving Technology,
Parsons, and many others, to get new designs and thoughts from them. Beximco has built strong
working relationships using its core clients as a result of interpersonal communication. Finally
it increase to 80 million lbs. from 11 million lbs. currently along with the annual capacity
involving apparel knits expected to reach 145 million pieces from 20 million pieces currently
is a remarkable increase in future. Beximco Fashion Limited is concentrating on the cost
3|Page

management to attract their customer and trying to give them better quality products at cheaper
prices. With the particular sustainable cost management advantage the Beximco Manner Ltd.
is playing a vital role in the particular RMG industry involving Bangladesh.

Overview of the Global Operation and Structure of the Firm


Beximco group of companies is one of the largest conglomerates of Bangladesh which
started its journey in 1970. The group has evolved from being primarily a commodities trading
company to a leading, diversified group since the early days, with a presence in industry sectors
that account for nearly 75% of Bangladeshs GDP. The Beximco groups key businesses
includes ceramics, pharmaceuticals, textiles, jute, information technology, aviation, media,
finance, real estate, construction and energy. The headquarters of the Beximco Ltd. is located
in Dhaka. Its major industries are located at the Beximco industrial park in Gazipur, outside
Dhaka. (Beximcofashions.com, 2015)
Beximco Fashion Limited (BFSL), which is a 100% export oriented garment industry,
is a member of Beximco group. It started its commercial production in 1997. It is located in
Savar which is an export processing zone. The organization is working through an all-round
characterized administration structure headed by CEOs under whom there are official
executives, general administrators for different divisions and as indicated by chain of
command, different senior and mid-level administration staffs. The CEO and the official chiefs,
general supervisors meet at consistent interims represented also by finance, marketing, and
personnel heads. Beximco Fashions Limited (BFSL) produces more than 6 million bits of high
quality dress/easygoing shirts for noticeable brands and retails in USA, Canada and Europe
consistently. (Beximcofashions.com, 2015). Beximco Fashions Limited is overseen by a
gathering of experts including ostracizes and goes for delivering astounding articles of clothing
through a successful quality control framework right from sourcing of fabric to deciding item.
The quantity of representatives toward the start of year 2009 was 2220.
Beximco Fashions Limited focused on the cost leadership. It provides higher quality
products to its customers (B2B) at lower prices. Its really hard to provide higher quality
product at lower prices. But as the Beximco is a large conglomerate in Bangladesh, they have
huge money to invest in any sector. So the Beximco Fashion Limited have invested on
advanced RMG machineries that are effective and efficient, and have less defective rate. With
the fewer defects, the rejection rate has gone down which is helping them to lower their cost.

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Notwithstanding that, they have great association with their suppliers. They have heaps of
supplier in their grasp who are supplying the quality raw materials to them. With these quality
raw materials there are the higher possibilities of improving yield. Because of the high number
of suppliers accessible, they can deal about the cost of the raw material. So they have a
competitive edge over their rivals about getting the raw materials at lower cost. Additionally
as Beximco is a reputed group in Bangladesh the suppliers need to have great association with
them also. So they give them the raw materials at lower costs by having a less overall revenue
which they don't give to alternate clients. In this way BFSL have the completive point of
interest of the expense initiative as their own expense of generation is low because of lower
cost of raw materials.
Beximco Fashion Ltd. is in the garments industry for a stretch of time. So they have the
experience on dealing with the employees. With that their representatives and laborers can
perform successfully and productively. So with the lower cost of the raw materials, propelled
hardware, viable and productive representatives and specialists the Beximco Fashion Ltd. has
the expense administration advantage over their rivals. Be that as it may they pay their laborers
in late. Generally they do a deferral of one week in every installment. Now and again they even
do the postponement in installments of two-three weeks. The global brand, for example,
Walmart and Target has a solid brand picture. To keep up that solid brand picture they need to
give quality item without fail. On the other hand they require their attire item at less cost. And
not everybody can give the higher quality item at lower costs. Pretty much everybody will stick
to a specific cost. The organization which can give items underneath that cost gets the
agreement. As Beximco Fashion Ltd. has the upper hand of expense authority they get the
agreement. Besides they give their dependable clients the items at lower cost as could be
expected under the circumstances. In this manner they pull in the outside clients and keep up
the great association with them.
The Beximco Fashion Ltd has foreign customers mostly. However they have one local
customer which is the brand Yellow. Its one of the clothing brands of Beximco itself. As
the Beximco Fashion Ltd deals with the international buyers with their quality products at
lower price, the Yellow gives them the order of their product if their production plant is idle.
For attracting the Yellow the Beximco Fashion Ltd do not do anything special as they are
the brand of the Beximco Group itself. Moreover when the foreign buyers stops ordering
product regarding some issues like the Rana Plaza or Tazreen Garments Fire, the Yellow
gave order to the Beximco Fashion Ltd. so that they do not incur huge losses.
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The size of the Beximco Fashion Ltd is 19 lines. Per day their production capacity is
20,000 units on average. There are 15 workers are working on each line. The company mainly
focuses on products like shirts, t-shirts and pants. They produce the products according to the
customers design and order. The workers are skillful because they go through a training period
which makes them effective and efficient.
Beximco intends to leverage its market position and global scale, further diversify
operations into highly profitable sectors, capitalize on the domestic growth opportunity and
selectively pursue international opportunities going forward. The group is listed on the Dhaka
Stock Exchange and the Chittagong Stock Exchange with a market capitalization of over $2
billion. (Beximcofashions.com, 2015)

Strategic Issues Facing the Firm


Corporate Issues Regarding the Global Context
Beximco Ltd is a conglomerate group. Thus there are lots of companies under one roof.
Since it is a huge corporation thousands of employees work here. These employees have to
fulfill the demand of the stakeholders as well as ensure the corporate social responsibility.
Mainly Beximco fashion Ltd deals with the clothing that falls under the Beximco Textile and
their brand is Yellow. It is the most wanted brand in our country. It is now are creating the
demand all over the world through its design and price. As the designs are exclusive, it is very
much in demand not only in Bangladesh but also in foreign countries like UK and Pakistan.
Now a days yellow is taking the initiative to expand its business all over the world since it has
very good supply chains and Beximco Fashion Limited is the major supplier of this brand.
However they have to ensure many things to be competitive in the global context, it is a great
achievement for a Bangladeshi Company to open up branches in foreign countries.

Corporate Issues Regarding the Bangladeshi Context


Beximco is now investing to come up with their own supply chain team who will supply
them raw materials and also distributor team who will distribute their own products. As a result
they will get good quality of raw material and will not have to pay any higher cost for it. In
short they dont have to worry about quality and also cost. Furthermore, as they will distribute
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their own products they will be able to cut extra charges of distribution cost. Besides they will
be able to utilize their knowledge regarding market segment and consumer demand. Thus they
will be able to meet the consumer demand by fairly distributing their products. Moreover they
will get the idea of real consumption rate of their products among different districts. It will
eventually help them to understand their consumers taste and also boost their sales.

Business Level Issues Regarding the Global Context


Yellow is now involved in foreign direct investment meaning that they are opening
branches in foreign countries. Thus they are investing in those countries and earning directly
from those investments. Furthermore this FDI has become successful in so many ways in
earning profit hence this investments brings money back to home country. It is successful over
there because least cost are incurred to produce the products and low price is charged from
foreign customers. Besides that the Beximco Fashion Limited is achieved cost leadership so
that they can attract foreign buyers. People want best quality of products in reasonable price
and Beximco fashion Limited ensure it to their customers. They give the lowest bid as possible
to attract buyers. Thus how they are grabbing more attention of buyers worldwide and making
their product worth of buying by ensuring quality with cost.

Business Level Issues Regarding the Bangladeshi Context


Yellow is almost available in everywhere in Dhaka City and also chaining in
Bangladesh. It is not difficult for people to find a Yellow store to buy its products as it is located
near to their place. This chaining of Yellow ensure much bigger sale of their products meaning
that if a shop is near to people place it will be easier for them to visit and buy their desired
products. Thus Yellow make sure that their stores are located in a place that is not far from
their consumer. This policy will not only boost up their sales but also increase the revenues of
Beximco fashion Limited. That is why Beximco is very focused to let their consumers know
about them and to make sure it work as effectively as possible. They open stores near the
consumers place, do billboard advertising etc. to achieve their target. They use their full
production capacity to ensure that they can meet their consumer demand to win business level
constraints.

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Functional Level Issues Regarding the Global Context


Beximco Fashion Limited is offering the high quality product at lowest price as
possible. Meaning that they have the ingredient to support earning of profit for them. Not only
that Beximco fashion Limited is doing their best to cope up with the things in demand in order
to operate on the functional level. Moreover they created jersey for world cup 2014 to keep
their consumers updated about them. It means that they are trying to fulfill the demand of each
consumer with the things are now in demand globally. In addition to that they are
manufacturing jerseys for Barcleys, Manchester United, teams of English Premiere League,
and Spanish Premiere league like Barcelona. They are doing this because they can produce the
best quality products. By doing so they have earned a goodwill that makes them most wanted
among celebrities. Besides that they are manufacturing clothes for American Eagle, Arcadia
Group, Calvin Klein, H&M, and JC Penny. It means the demand of their clothes is increasing
day by day, as they are updating and also fixing their functional level functions keeping
consumer needs and demands in mind.

Functional Level Issues Regarding the Bangladeshi Context


Yellow is considered as one of the prestigious local brand after Ecstasy. It is known for
its superior quality and has all the needed fashion and style that modern people or new
generation wants. On the other hand Yellow charge a bit higher for their products. Their
strategy is to ensure their quality first, then focus on the innovative products. Due to ensure
continuous innovation they have to charge a bit higher because it leads more cost. Beximco
Fashion Limited provide the raw materials for manufacturing the products for Yellow. They
provide them the quality goods that is why Yellow charge higher. But they also keep the needs
of middle class people in mind. In winter they offer sales up to 70%. It enable those people
who cannot buy their products usually to purchase those during sales. Thus by ensuring all the
details regarding everything that a consumer wants, they build up each and every strategy even
more successful.

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Analysis
Competitive Advantage
Competitive advantage is very important to sustain in industry for longer period of
times for any organization or company. The competitive advantage of Beximco Fashion
Limited is their quality products at the same time they try to charge as low price as possible.
That is why it is well known even to the foreign buyers as well. Although Bangladesh lacks
indigenous cotton product capability, Beximco is being able to leverage labor cost advantage
and also export competitiveness to the maximum.
There are few factories which follows the building block of the competitive advantage.
The building blocks of the competitive advantage of Beximco Fashion Limited is given below-

Efficiency
Beximco Fashion Limited has efficient workers, employees and machineries. These
machineries help them to reduce the time of production during production process. In most of
the organization these steps are done manually which takes more time. It is indeed a privilege
for Beximco. Moreover they provide training to their workers that make the workers more
efficient and effective. For all these their production process is effective and efficient.

Quality
Beximco fashion Limited Manufacture higher quality products. It always maintain
contact with the supplier who provide them quality raw materials for their products.
Furthermore it remains up to date with the new technology and innovation in Bangladesh with
an emphasis on international standard of corporate governance and TQM (Total Quality
Management). In order to provide new design and product development support from fibers to
garments and leading retailers, brands using integrated manufacturing process, technology
collaboration and powerful tools with the major suppliers.

Customer responsiveness
Trend and fashion keep changing over time. That is why Beximco Fashion Limited has
to maintain the changing demand of their consumer effectively and efficiently. With the change
of fashion and trend in the marker consumer order changes. They provide them those products

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of quality but at as low price as possible. Thus it helps them to maintain a trendy image in the
consumers mind.

SWOT Analysis of Beximco Textile Limited


Strength

They have the efficient workforce and machineries to produce effectively and
efficiently.

In Beximco Fashion Limited rejection rate is very low.

They have stable contract with the brand like American Eagle, Arcadia Group, Zara &
JC Penny.

They have seasonal contracts with other brands such as Polo Ralph Lauren, Calvin
Klein, Timbaland, Levis, Ecko etc.

Weakness
The weakness of Baximco fashion Limited is that they pay their workers and employees
late which often leads the labor strikes. Sometimes this delay increases into 2 to 3 weeks.
Moreover for management level employees sometimes they dont pay for a year.

Opportunities
The RMG industry of Bangladesh has more chance to get bigger. Some economists
stated that if we can improve the current issues there is a high chance to get higher return in
future. So they can increase profit by increasing their lines of production.

Threat
Incidents like Tazrin Fashion Fire and Rana Plaza Collapse leads a very negative impact
on the RMG sector of Bangladesh globally. If we dont take any initiative to improve these
issues many foreign investors will leave this market and will choose our competitors like
Vietnam, Myanmar etc.

Cost Leadership Advantage


The Beximco Fashion Limited has targeted broad market as market segment. For that
reason they are providing the products at lower cost. Bangladeshi garments are renowned
worldwide for cheap labor cost. Among all the competitors Beximco has established itself in a

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way so that they can provide their valuable consumers higher quality product but at lower price.
That is why they have built up the cost leadership strategy.

Avoiding the Chasm


Beximco Fashion Limited has nineteen lines of productions. All these lines are utilized
at their highest level. Therefore they have reached their higher level of production. However
Bangladesh will get more foreign contracts if they improve safety issues. Thus if Beximco
invest in more products line they will be able to earn more profit which will enable them to
avoid chasm.

Quality Control
To ensure the quality Beximco Fshion Limited check the quality at the end of the
production. However they could check the quality after every step, but that will increase their
cost. As they have their own raw material supplier and also skillful workers, so checking the
quality after the production is cost effective for them.

Competitor Analysis
In Bangladesh there are 5400 garment factories. All of these are producing goods at
lower price and also offering it to consumers at lower price. Among all these Beximco Fashion
Limited has better brand image. Moreover getting raw materials from their own supplier at
lower price is an incentive for them than competitors. Their major competitors are Square
Textile, Hamim Group and Sharmin Fashion Limited etc.
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Beximcos Business Model for one Product (Shirt)


Beximco fashion limited is famous for their readymade garments products quality.
They usually produce casual shirts and pants for men, and blouses for women. In this following
section Beximcos business model for one product- Shirt will be discussed in depth.

Customer Segments
The first element of Business Model is Customer Segments. It can be defined as
creating market or for whom one company will make product or value. The Beximco Fashion
Limited does their deals with other brands or even companies. They dont directly sell single
product towards the people. The brands or companies visit them to place orders. Based on that
order they supply apparel products. The main customers of the shirt of the Beximco Fashion
Limited are on the North America & Europe. The well-known clothing brands from people
regions usually place order towards the Beximco Fashion Limited with regard to the shirts. The
Beximco Fashion Limited produces the two exclusive and medium selling price range of shirts.
Beximco usually sells to their customers at cheaper rate, but their customers like- Levis, H&M
charges higher price when they are selling by their own. So basically the famous branded shops
are buying from Beximco at lower rate and again sell it at higher rate- as they are making more
profit.

Value Proposition
Value proposition is a bundle of products and services that create value to the
customers. Beximco Trend Ltd. basically does the business to guarantee the business trade.
Their customers are brands that are world famous, which means quality can be a must to
maintain. However, those brands sell the products at higher price since they have the higher
manufacturer image. Also, when they place their order they might require higher quality at less
price. Ensuring higher quality at lowest price is not possible but you'll be able to give slightly
lower price versus competitors. Beximco is specialized in the cloth manufacturing for them to
charge less than their competitors and because of that their value proposition is more for a
smaller amount. Beximco Fashion Limited has a lot of suppliers in their hands. So they can
bargain with them for their suppliers. Thus they can reduce their cost from the very addition of
the production. The Beximco Fashion Limited provides the higher quality materials from other
supplier at low price tag. Their workforce is competent, effective and efficient. And so, they
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do less mistake during the time of the production. Because rates of the mistakes are less
therefore the rate of the rejection can be less. If the rate of rejection rises, the cost of the
production rises. On the other hand the rate of rejection decreases, the cost of the production
also decreases. Thus the Beximco Fashion Limited produces good quality product at lower
prices because of their customer. As their cost of production is low for them to charge lower
price to their customer. As they usually are providing the higher quality products at low cost
than their competitors there're providing more for a smaller amount value.

Channels
Channel is the process of interacting with customers and delivering them value. Its the
touch point where buyers and sellers clarify both of their requirements. There are two types of
channel for interaction. One type is direct channel, the location where the customer and the
manufacturer meet directly for the transaction. Another is indirect channels, where the buyer
meets with the seller by using an intermediaries. In the situation of Beximco Fashion Limited
the delivery will be based upon the contract with the buyer. At the time from the contract if the
client states that the shirts ought to be delivered by the Beximco Fashion Limited then it uses
a delivery company to ship it for the customer. On the other hand when the customer states on
the contract that they may get their product by themselves then the Beximco Fashion Limited
doesnt hires practically any delivery company. To ship their product inside foreign countries
they do the insurance from the shirts. Sometimes the accident occurs inside middle of the
distribution. That causes the firm lots of losses. To avoid that loss the company does the
insurance. For delivering the shirts inside outlet of Yellow they use their own transportation.
Basically Beximco is the owner of Yellow, by which they are selling their products to the
local consumers.

Customer Relationship
Customers are the only target and heart of any sorts of business. For them the business
earns the revenue is actually that the enterprise runs. Before the client relationship was not
necessarily that main concern on the firms. But as time passes the customer relationship is
getting the major fact on the concern. The major customer for shirt product on the Beximco
Fashion Limited is Walmart, Target and the Yellow. The brand Yellow is one of the clothing
brands on the Beximco itself. However for the other major customers this Walmart and Target
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they should maintain good client relationships. Those customers hand them over huge amount
involving order from that they can earn a lot. If they could maintain relationship along with
those customers then it truly is really profitable for the teenagers. Beximco Fashion Limited
has the cost leadership advantages which has given them the benefit to charge a lot less than
their competitors. But to take care of good relationship with Walmart & Target they give
something more to create them delighted. They give them product with a lot more less price.
Thus they cause them to their loyal client. Sometimes that firm gives them obtain directly
without opting the auction while they have the beneficial relationship.

Revenue Stream
Earnings is foremost for virtually every kinds of business. From the profits of revenue
some sort of company can sustain searching for a longer timeframe. The Beximco Fashion
Limited has the ability of approximately 20000 pcs of production every day. But when its in
regards to the production of shirt they can produce only about 16000 units per day. They
charges only $3.5-$5 for shirts from the customer. Based on the standard of shirt those rates
are less. On the production of the shirt they can earn the income of 5cr-5.5cr annually. It can
vary from the quality of the shirts. Nevertheless this is the average revenue in line with the
production of the shirts. The Beximco Fashion Limited also produces t-shirts, pants and many
others. The given revenue with the shirt is only a percentage of the total revenue of the Beximco
Fashion Limited.
Key Resources:
The Beximco Fashion Limited supplies the higher quality product on their customer at
very lower price. To get that will cost leadership they want the efficient along with effective
machineries, employees and workers. Their main source is their advanced machineries which
can cut the linen into different styles within minutes. If the production manager provides
direction to the cutting unit to cut the cloths in various shapes it reduces those clothes into
different shapes. By using that machine their particular times gets ended up saving. Time is the
actual vital factor to the garments because they could fulfill lots associated with order and earn
plenty of revenue if they could manage the period properly. If they make use of the human
workforce to cut down the pieces with the shirt then it's going to take lots of energy. But using
the actual advanced machine reduces enough time by a great deal. On the different hand the
Beximco Fashion Ltd. choses their manager cautiously because those manager will be taking
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care of all the production from the beginning to the stop. If they will not be good at their job
next there will occur plenty of fault in the actual production. Moreover the actual Beximco
Fashion Ltd. provides their worker appropriate training for creating. So their workers may also
be important resource to the firm. With the aid of those key resources the company is being
more effective and efficient and that is giving the price leadership advantage. The Beximco
Fashion Ltd. is reputed to help its customer for all those reasons.

Key Partners
Key partners are the people, who are most important for ones business success.
Beximco fashion captured many famous both local and international brands as their key
partner. Here are some of their key partners names collected from Beximcos web siteSpringfield, VAN Heusen, Calvin Klein, DKNY, J.C Penny, Next, IZOD, Arizona, H&M, St.
Johns Bay, Arrow, Levis, Walmart, Target etc. Arrow, Walmart, Levis are the very well-known
company over the world. Besides this Yellow is very famous in our local Bangladeshi apparel
market. All of these famous brands needs better quality product as their prime target is to create
strong brand image amongst their customers. So if they ever fail to provide good quality
products to their customers they may well lose their reliability. On the other hand those
companies also require to buy the products at cheaper rate as possible. So they need to have
some partner that can provide them the great quality male shirts at lower cost. For that reason
they basically give their orders towards Beximco Fashion Ltd, which is the responsibilities of
Beximco to perform the orders by the due date and hence provide them on excellent time and
location. However, they sometimes obtain the supplies from their buyers and the majority of
the times they get supply from their local firms. Beximco Fashion Limited sometimes gets
order from the world class brands which might be renowned for their particular quality and
additionally the expensive value. They provide them the supply to maintain the exclusivity.

Key Activities
There are several key activities the Beximco Fashion Ltd. does whenever they
manufacture the shirts. They usually bid for to find the order from the buyer. If they can bid
the minimum then they can get the order. After getting the order the buyer gives them the
planning and other details. Depending on which they go for the actual production. Sometimes
absolutely free themes provide the supply if they need to maintain the exclusivity. Alternatively
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if the buyer doesnt give the supply for that production, the Beximco Fashion Ltd. go for their
supplier for the actual supply. After getting the actual supply their creation manager designs
that how you can produce more effectively and efficiently. Determined by that guidance the
actual workers produce the actual shirts. After the production the coffee quality control team
checks the quality of the product to ensure the minimum quality requirements of the customer.
After the QC the actual shirts are prepare to deliver for their customer. In some time of the
creation the workers carry out their activities carefully careful if they do just about any mistake
then that product is going to be rejected. If the sexual rejection rate goes greater than the cost
is going to be higher which may cause the Beximco Fashion Limited to lose their competitive
good thing about the cost management.

Cost Structure
The expense of the shirts depends on the requirements of the order. Usually Beximco Fashion
takes 5-15% profit margin from their customer. This percentage actually depends on the relationship
with the buyer. As they feature the quality solution so their cost is high. But as they've invested on stateof-the-art equipment which makes certain quality product as well as a higher productivity and so per
head cost is falling down that is certainly a huge edge for Beximco like the production cost is less they
are able to make a higher volume of profit. Their cost is practically 85-95% of the price tag on the shirt.

Recommendation
Beximco Fashion Limited can certainly raise their production line in order to get enough return
in future. It has been forecasted by lots of analyst that Bangladesh RMG sector is going to have more
contract in the foreseeable future form foreign buyers. Consequently it is going to be the excellent
investment decision. On the other hand Beximco Fashion Limited pays their workers in late which
sometimes cause strike. As they are solvent company and its their intentional activity, so they should
avoid these because it can damage their fame. If it creates negative brand image in the mindset of their
customer then they can swap to other organization who are maintaining those rules and regulation.
Apart from many Beximco Fashion Limited has the advantage of the cost leadership. In order they
should do their activities in a way that can help them to sustain the competitive advantage for a longer
period of time.

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Conclusion
Beximco Fashion Limited is one of the well-known garments factories in the RMG
industry. They have the competitive advantage of the cost leadership for which they are being
able to draw attention of many well-known foreign brands and making very good associations
with them. They have the efficient and effective machineries, management team and personnel
which are aiding them to retain their competitive advantage. By making use of the competitive
advantage they have built up strong relationship with the international brand like JC Penny,
Walmart , Target and Zara. Bangladeshi garments usually are known the item in the entire
world for providing the standard quality products with the lower price. Among them Beximco
Fashion Limited has cost leadership. Thus, production plants always are being in the utilization
of their full production. However they are doing the constant delay of the payment to their
personnel. They should reduce this delay as its their intentional activity. They should pay them
in time to avoid the strikes. Moreover the foreign buyers can breach contract with them or pay
less due to this fact. However they came to Bangladesh as the garments were offering them the
products at lower cost. But as it is the profitable sector of Bangladesh many stable individuals
can invest in this sector and can develop a RMG factory which can have more competitive
advantages. If they can sustain good relationship with their workers and pay them in time then
the foreign buyers can shift to them. The Beximco Fashion Limited has full financial
capabilities to pay their workers on time. So they really should pay out their staffs in time to
make the connection with all the staff even stronger. The company seemed to be robust from
the earlier instances and with that in time payment it can sustain in the market for a long period
of time without the criticism of the foreign buyers.

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References
Bextex.net,. 'BEXIMCO | Textiles & Apparel Division'. N.p., 2015. Web. 30 Nov. 2015.

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Research Method
For the company and industry report we have interviewed the executives from the
Bextex. While interviewing them we got bellow information.
Company related questions 1.

Who are your target markets?

2.

How you are serving them?

3.

Do you think the company has any competitive advantage?

4.

How you built up your competitive advantage?

5.

How many countries you are exporting most?

6.

Do you have any loyal international customer?

7.

How you are building relationship with them?

8.

Do you think this relationship is sustainable for the future?

9.

What are the functional level strategies you are following?

10.

What are the business level strategies you are following?

11.

What are the corporate level strategies you are following?

12.

What are the main products you are manufacturing?

13.

How you are ensuring the quality of them?

14.

Is there any weakness which you guys are trying to overcome?

15.

What are the opportunities you can see for the Bextex?

16.

What can be the threats for the company?

17.

Do you have any buyer in Bangladesh?

18.

What is the prediction of you guys about the future of RMG industry?

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Thank You Letter


To
MD. Sabbir Newaj Jitu
Assistant Manager
Beximco Textile Ltd. (Yellow)
Subject: Thank you letter.

Respected Sir,
We the students of North South University got the opportunity to visit your company Bextex
for our education purpose. It was a great honor to visit your company and got the opportunity
to learn from you. Our main reason for visiting is getting knowledge from the corporate world.
We believe that your company certainly gave us to know functional systems and the work
procedure of the big organization like yours.
We would like to thank you for helping us a lot when we went to visit your Bextex and for
providing us enough information which was needed to complete our Report. You and your
whole team were friendly and helpful. The information and the experience provided by is not
only helpful for our project but also helpful for our corporate word in future. Thank you so
much for showing us different things and explaining them to us properly and giving us the
accurate information.
Regards,
Eshrat Farzana Eshika
Forhad Sadi
Nishat Shaoli Islam
Mohammad Toufic
A.K.M Monjur Morshed
Mahfuz Alam
Sajeed Sarwar
Students of North South University
Bashundhara, Dhaka.

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Appendices
Bangladeshs Share in Global Apparel Export
Currently Bangladesh share 5% of global apparel export and Vietnam 4%. Economists
say that due to TPP (Trans Pacific Partnership) there is a high chance that by 2024 Vietnam
will beat Bangladesh and will take the second position after China. Vietnam will be able to
increase their share up to 11% because of this agreement. On the other hand if Bangladesh can
fix work environment, safety and political instability issues they will be able to increase their
share up to 7%.

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