Kantipur College of Management and Information Technology

A Business Environment report analysis of

Salt Trading Corporation

Kalimati Kathmandu

(A project report carried out as a supplementary activity of the

course"Business Environment in Nepal"BBA fourth semester,
KCMIT college, Affiliated to Tribhuvan University)

Submitted by Submitted to

Ashmi Neupane Binit Shrestha

Bibha Sah

Renuka K.C.

Shruti Gautam

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Abstract in

Economy gr owth an d develo pmen t proc ess.

Ashmi Neupane
Shruti Gautam
Bibha Sah
Renuka K.C.

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ACKNOWLEDGEMENT
This field work report has been prepared under Small Business as partial fulfillment and
requirement of Bachelor of Business Administration (BBA) programs of faculty of
management T.U.

A detailed list of authors, books & other sources which were used as fundamental sources
in course of preparation of this report has been included in Bibliography which will be
useful to those enthusiastic to enter the source

First of all we are very thankful to god for providing abundant grace, good health and
knowledge to do the research project.

Any fruitful work is in competence and is incomplete without a word of thanks to those
involved directly or indirectly in its completion with any sincere gratitude I would like
to thank everyone who has support my project.

We are extremely thankful to our business environment teacher Mr. Binit Shrestha and
our principal mam Mrs. Lalita Chand who gave us a golden opportunity who do this
project and also we are also thankful to the CEO of Salt Trading Corporation who gave
us golden opportunity for to research in the organization

I would appreciate all the staffs who took out their valuable time to give their views and
filled the questionnaire.

Lastly, I take this opportunity to thank my friends who chipped-in with some valuable
suggestions for the betterment of this project.

If any mistakes are found in this report we are very extremely sorry for that.
Group-A

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 Table of contents

S.N Description Page number

1 Chapter-I Introduction of the STC
1.1 Establishment Date 6
1.2 Business Location 6
1.3 Operation Areas/Branches 6
1.4 Products and Services 6-7
1.5 Brief History 8
1.6 Key Achievements 8
2 Chapter -2 Description Of The Industry
2.1 Industry Profile 9
2.2 Competition Level 9
2.3 General Nature 9
2.4 Scope 9-10
2.5 Size 10
2.6 Key names/Key business in the industry 10
3 Chapter-3 Analysis Of Business Environment
3.1 Internal Environment 11
3.2 Macro Environment
3.3 Task Environment
4 Chapter-4
4.1 Profit and Loss Analysis
4.2 Analysis of the business success or not
4.3 Opportunities and threat to the business
4.4 Strength and weakness to the business

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4.5 Future of the business
4.6 Key success factor for the business
Appendix

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CHAPTER I
INTRODUCTION TO THE SALT TRADING CORPORATION
Salt Trading Corporation Limited (STC) is a public-private venture. This
company was established for the purpose of regularizing the distribution of
salt within the country, has now diversified to sourcing and distributing
numerous essential items mostly on the behest of the Government of Nepal

1.1Establishment Date
Established in 1963 A.D. and 2020/5/27 B.S to build a robust product
portfolio across categories, exploring new markets, aggressively expanding
the network and continuing to invest in brand building activities
1.2 Business Location
The central corporate office of Salt Trading Corporation is located at
Kalimati, Kathmandu
1.3 Operation/Branches
STC (Salt trading Corporation) has its zonal, branch, sub-branch and depot
offices spanning the length and breadth of the country. Well it has its 24
branches and it lies all over the Nepal.
1.4 Products and services
STC made proper utilization of its excellent distribution network existing all
over the country. STC offers wide range of daily consumable goods (Salt,
sugar, Rice, Pulses and beans including Lentil, Oil, wheat and derived
products) as well as Paper and allied products, Gas and allied products
(including Gas Regulator & Hose Pipes), Coal, Cement etc.

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Salt Trading Corporation sale its product & services under STC Brand. STC
provides the guarantee of all its products in terms of quality and price.
Following are the products available in STC.
1. Salt: Available in the brand name of Ayo, Bhanu, Shakti and Tej

2. Sugar: Available in different grades and packs.

3. Rice: Available in different varieties and packs.

4. Pulses: Different varieties of pulses are available in different packs.

5. Wheat & Allied Products: Wheat, Wheat Flour, Semolina is available.

6. Oil: Available in Pouches and Jars.

7. Spices: Available in different packs.

8. Paper & Allied Products: Available in different gauze and variety.

9. Cement: Udaypur and Hetauda cement available.

10. Coal: Available in different specifications.

11. LP Gas & Allied Products: LP Gas available under STC Brand, Hose Pipe
& Regulator available in Agni Brand.

12. Tyres & Allied Products: Different sized trucks and non-trucks tyres and
tubes are available.

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 1.5 History of Salt Trading Corporation
The people of Kathmandu Valley have been worshiping Lord Bhimsen’s as
a protector of their business and trade. Four to five decades ago, it was very
difficult to trade and do business with India and Tibet. Business at that time
needed strength (to cope with the geographical situation) and honesty (to have
faith on laborer or traders for goods and services) and for that reason, the
citizens of the valley who were involved in business, used to pray to Lord
Bhimsen’s regarding him as the symbol of power, integrity and honesty. That
is why Salt Trading Corporation Limited has adopted Lord Bhimsen’s mace
as its logo to symbolize power and honesty. Written under the mace are the
words, “Satya Mewa Param Dhanam” which means “Honesty is the Greatest
Wealth” and was taken from the Mahabharata. Hence, the logo of Salt
Trading Corporation Limited symbolizes power and ethos of honest business
practices. Salt Trading Corporation Limited is committed to abide by this
value without any deviation both in principle and in practice
1.6 Key achievements

1. Set up industries in strategic and core sectors.

2. Provided basic infrastructure facilities at affordable costs.
3. Promoted balanced regional development by setting up industries in
backward areas.
4. Generated large scale employment opportunities and contributed to the
reduction in unemployment

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Chapter-2
Description of the Industry

2.1Industry Profile
Well regarding to the industry profile of the Salt Trading Corporation it is a
manufacturing industry. Manufacturing industry does not means only
manufacturing the goods. So the Salt Trading Corporation is those type of
industry which manufacture the goods, produce and distribute the goods.

2.2 Competition Level

Regarding to the competition level comparing to the other organizations the
competition level of Salt Trading Corporation is very high. As it is a
government invested company its main objective is to provide proper goods
and services to the people. To provide proper goods and services there may
be the competition between the other companies so there may be the high
level of competition

2.3 General Nature

Regarding to the general nature of the Salt Trading Corporation it is a
government invested organization and it is also the public and private
ownership organization
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2.4 Scope

❖ Import salt at reasonable rates and manage its distribution all over
Nepal.
❖ Import, export and distribute other daily consumer goods and items as
per the need of the country.
❖ Open and operate branches sub-branch depots and offices in different
parts of the country for purpose of import, export and distribution
activities.
❖ Expand offices in all districts of the country.
❖ Invest in foreign companies, work in joint venture with foreign
companies, and do business and trade by registering company abroad.
❖ Work as agent and representative of the corporation for export, import
and trade.
❖ Establish, develop and expand its factories, machineries, vehicles and
raw materials including other goods, semi- processed materials and
processed materials.
❖ Establish new industries and reinvest in old established industries.
❖ Produce, import, sell and distribute chemicals and fertilizers.
❖ Purchase land and get involved in sales and distribution of housing and
leasing, construct housing units, plot and plan Real Estate assets and
related works

2.5 Size

Well regarding the size of the organization it is a large scale sized

organization because regarding to the number of employees there are
400 employees so it can be said as a large scale sized organization.

2.6 Key Names/Key Business

Well different business organization have different key names/ key

business. So, Salt Trading Corporation has the key names as well as key
business. Salt Trading Corporation key name is Salt.

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Chapter-3
Business Environment Analysis
Business environment is the sum total of all external and internal factors that
influence a business. So there are different factors i.e. internal and external
factors that may influence our business. These factors may also can be known
as environment factors. Categorization of the environmental factors are given
below:
3.1 Internal Environment
Well there are different components that may form the internal environment
which are given below:
1. Organizational goals and policies
Well different organization have different organizational goals and
policies. So some of the organizational goals and policies of STC are
given below:
✓ Profit Growth
✓ Market Growth
✓ Social Responsibility

2. Organizational Resources
Regarding to the organizational resources STCs main resources is
human resources i.e. knowledgeful skill and managerial capabilities
resources are working here.
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3. Organizational Structure

Depending on a company's goals and the industry which it operates in,

organizational structure may be different. So, STC has a corporate
organizational structure.

4. Organizational Culture
Depending on the company’s goals and policies organizational culture
may be different. So STC have the organizational culture of market
culture which is based on competition.

3.2 Macro Environment

Macro environment is composed of different factors. Some of the
factors that may composed. Some of them are:

• Economic Environment
Being an economic entity, economic environment is the most important
component for a business. Element of economic environment are given
below:

1. Economic System
Well there are three types of economic system i.e. free market economy,
centrally planned economy and mixed economy.STC consists in mixed
economy which is based on co-existence of both private and public
sectors.
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2. Economic policies
As we know that economic policies are the backbone of the
organization. Without these economic policies our organization cannot
survive. So these economic policies are very important for the
organization. Regarding to the research of the organization i.e.STC has
the economic policy of industry ie industrial policy.
3. Economic conditions
As we know that economic condition represent the economic soundness
of a organization. So also the economic condition of Salt Trading
Corporation also represent the economic soundness.Some of the
economic

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+

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CHAPTER I

INTRODUCTION TO THE SALT TRADING CORPORATION

History of Salt Trading Corporation

The people of Kathmandu Valley have been worshiping Lord Bhimsen’s as a protector of their
business and trade. Four to five decades ago, it was very difficult to trade and do business with
India and Tibet. Business at that time needed strength (to cope with the geographical situation) and
honesty (to have faith on laborer or traders for goods and services) and for that reason, the citizens
of the valley who were involved in business, used to pray to Lord Bhimsen’s regarding him as the
symbol of power, integrity and honesty. That is why Salt Trading Corporation Limited has adopted
Lord Bhimsen’s mace as its logo to symbolize power and honesty. Written under the mace are the
words, “Satya Mewa Param Dhanam” which means “Honesty is the Greatest Wealth” and was
taken from the Mahabharata. Hence, the logo of Salt Trading Corporation Limited symbolizes
power and ethos of honest business practices. Salt Trading Corporation Limited is committed to
abide by this value without any deviation both in principle and in practice

Key achievements

❖ Establishing the homes of people who have lost their homes in Earthquake of 2072
❖ Solving the problem of shortage of fertilizers
❖ To provide proper product and services to the people

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