MGT210 TERM PAPER ON

BSRM STEELS LTD.

Date of Submission: 31th August 2018

 MGT210 Term Paper on

“BSRM STEELS LTD.”

Submitted to:

Quazi Tafsirul Islam

Lecturer

Department of Management

North South University

Submitted by:
Name ID No.
1. Faiza Ripha Choudhury 153 0233 630
2. Jyoti Biswas 171 1144 630
3. Md. Adnan Abir 171 1358 030
4. Zarin Anan 172 1111 630
5. Maliha Haque 172 1977 630
6. Sadat Rabban 172 2202 630

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 Acknowledgement
First of all, we would like to express our gratitude to our Almighty Lord for giving us energy to
complete our whole project. Without His mercy, we could not able to complete our task. The title
of our report is “MGT210 term paper on BSRM Steels Limited.” We are much blessed to all
the members of our group for co-operating cordially to complete this report.

Then we would like to thank our honorable faculty: Mr. Quazi Tafsirul Islam sir for giving us
opportunity to work on our expected company “BSRM Steels Limited”. Besides we can’t
complete our task without his guidance. He made every managerial concept easy to us and we
have applied those concepts in our report.

We also would like to thank our interviewee, Mr. Dibakar Biswas, sales-in-charge of BSRM
Steels Limited for giving his valuable time. Without his assistance, we can’t get proper
information about BSRM. Those information helps us lot to complete our task.

Finally, we, all group members, have given our maximum efforts for making this report and
fulfilled all requirements of this report which was given by our honorable faculty.

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Executive Summary:
Among all steel companies in Bangladesh, the reputation of BSRM is pretty good enough. The
journey of BSRM has started from 1952. The founders of this company were “Akberali
Africawala” and “Taherali Africawala”. In one sentence we want to say about BSRM that they
are ruling in the steel market of Bangladesh since 66 years. The financial success of BSRM is
highly praiseworthy. In the year of 2016-17, they have earned revenue BDT 49,949 million and
gross profit BDT 7,354 million.

In this report, we have tried to present the managerial functions of BSRM. We have applied
various managerial concepts in this report which we have learnt from the “organizational
management” course. First of all, we started the report with brief history about BSRM. Then we
have shared our own understanding about mission and vision of BSRM in the section of mission
statement. Then we have presented the corporate structure of BSRM through flow-chart and also
given brief information about some executives of BSRM in the section of organogram. In
situation analysis section, we have analyzed the internal and external factors of BSRM. We have
used PESTEL analysis tool for presenting the external factors of BSRM. Then we have also
identified attractiveness of BSRM through using porter’s five forces tool. Then we could able to
identify that BSRM is a very much attractive organization. To identify strengths, weakness,
opportunities and threats of the BSRM, we have used SWOT analysis tool. In the objective
section, we have presented certain targets of BSRM. In addition we have discussed those
objectives in details including what types of strategies they are maintaining to accomplish those
objectives. Then we have presented about good and bad things about BSRM in management
issues section. We also want to mention that we could able to present a pretty number of good
things of BSRM but it was very difficult for us to find any bad sides to this company because
they operate their business in a very ethical standpoint. We have used information from different
types of sources such as annual report of BSRM, different articles of newspaper, different
websites, brochure and answer of interview questions for making this report.

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Table of Contents
Acknowledgement..........................................................................................................................2
Executive Summary:.....................................................................................................................3
1.0 Introduction:............................................................................................................................6
2.0 Mission Statement:..................................................................................................................7
3.0 Organogram:............................................................................................................................8
3.1 Corporate Structure:...........................................................................................................8
3.2 Information of some executives of BSRM:........................................................................9
4.0 Situational Analysis:..............................................................................................................10
4.1 Analysis of Internal Factors:............................................................................................10
4.1.1 Strong Corporate Culture:........................................................................................10
4.1.2 Activities of Raw materials sourcing:.......................................................................11
4.1.3 Ensuring the demand of Power Supply:...................................................................12
4.1.4 Maintaining production cost by minimizing Interest Rates:..................................12
4.1.5 Dynamic Human Resource Department and their functions:................................13
4.2 Analysis of external of factors:.........................................................................................14
4.2.1 Political Factor:...........................................................................................................14
4.2.2 Economic Factor:........................................................................................................15
4.2.2 Socio-Culture Factor:.................................................................................................16
4.2.4 Technological Factor:.................................................................................................17
4.2.5 Environmental Factor:...............................................................................................21
4.2.6 Legal Factor:...............................................................................................................22
5.0 Porter’s five forces:................................................................................................................22
5.1 Threat of new entrants:.....................................................................................................23
5.2 Threat of Substitutes:........................................................................................................24
5.3 Bargaining Power of Buyers:............................................................................................24
5.4 Bargaining Power of Suppliers:.......................................................................................25
5.5 Industry Rivalry:...............................................................................................................25
5.6 Outcome:............................................................................................................................26
6.0 Swot Analysis:........................................................................................................................27
6.1 Strengths:............................................................................................................................28
6.2 Weaknesses:........................................................................................................................29

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 6.3 Opportunities:....................................................................................................................30
6.4 Threats:...............................................................................................................................31
7.0 Objectives:..............................................................................................................................32
7.1 Increase Business Capital:................................................................................................32
7.2 Encourage shareholders to invest in Stock Market:......................................................33
7.3 Modernize Manufacturing System:.................................................................................34
7.4 Assure active teamwork management among all employees:........................................34
7.5 Obtain the employees’ high level of self-assurance and professionalism:....................34
7.6 Involve in product and market development:.................................................................35
8.0 Management Issues:..............................................................................................................35
8.1 The good things of BSRM.................................................................................................36
8.1.1 The milestones.............................................................................................................36
8.1.2 Trade Relations...........................................................................................................36
8.1.3 Awards:........................................................................................................................37
8.1.4 CSR Projects:..............................................................................................................37
8.1.5 Landmarks:.................................................................................................................38
8.1.6 Environmental aspect:................................................................................................38
8.2 Bad Things of BSRM:.......................................................................................................38
9.0 Conclusion:.............................................................................................................................39
10.0 Appendix:.............................................................................................................................40
11.0 References.............................................................................................................................41
12.0 Bibliography.........................................................................................................................43

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1.0 Introduction:
Bangladesh Steel Re-rolling Mills, known as BSRM, is the foremost steel manufacturing
company in Bangladesh and they have few dynamic corporate houses in Bangladesh. It was
established in 1952[CITATION BSR18 \l 2057 ]. Two African businessmen named “Akberali
Africawala” and “Taherali Africawala” who founded the company in East Bengal[CITATION
The16 \l 2057 ]. At present they have already earned the huge publicity through providing the
high quality manufactured products. Over and above BSRM really cares about consumer
satisfaction. They always do interaction with their consumers in all stages for understanding their
actual necessities and offer products and services to accomplish their needs. By doing these, they
could able to gain the faith from the majority of the consumers. After many years of starting their
business, now BSRM has become a popular national steel manufacturing company for several
remarkable national projects. The Hatir Jheel project, Zillur Rahman flyover, Mayor Hanif
flyover are few of them and BSRM XTREME steel was used in making those projects and it is
the highest strength product among all products of them[CITATION BSR181 \l 2057 ]. Because
of those project, BSRM has already reached a supreme stage among all other steel companies in
Bangladesh. They are always bringing the evolution of their products through their unique
activities. For example, they have manufactured EMF tested rod. For this product, they have
become the first steel brand whose products can pass five million cyclic loading pressure. It was
tested in the United Kingdom and got consent from 10 global standards. They never compromise
with latest technology. As a result they are using all modern technological materials which are
exported from Europe[CITATION BSR18 \l 2057 ]. These made them distinctive from the rest
of the steel manufacturing companies in Bangladesh. For this reason, BSRM has become the one
of the consumers’ best choice in the construction industry. Besides BSRM usually innovates new
products and these products play a significant role in the vital project of our country, BSRM 50
mm rod is one of them. They manufactured it for the Padma Bridge construction[ CITATION
Dha161 \l 2057 ]. At the end of the day, BSRM is working for making the safe and secured
building nation.

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2.0 Mission Statement:
A challenging moment for an organization is when it has to revise its rules and rephrase its
pathways in the industry ensuring cost cuts to benefit the customers. The Bangladesh
construction industry is dynamic and a major pillar of growth for the country. Being in the game
of supplying for one of the most costly and crucial materials, BSRM guarantees sustainability for
themselves and its customers by attaining the possibilities offered by modern and advanced
technologies. In a challenging time where costs are ever increasing, including steel, it has been
our feat to ensure that our customers continue to benefit more with the better use of our products:
receiving more with less. To incorporate social responsibility into main business decisions,
BSRM incorporates CSR at every level of the business process. BSRM is putting up a CSR
strategy that brings out the intent for Caring, Supporting, and Developing the society where it
begun its journey decades ago – this is how BSRM defines CSR and looks and supports
interventions circumscribing this scope.

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 3.0 Organogram:
3.1 Corporate Structure:

Board of Director

Group CFO and

Managing Director Director (Finance) Company Secretary

Head of Finance and

Accountant and CFO
Executive Director
Head of Dhaka Corporate Affairs

National Sales Head Country Director Kolkata India

Head of marketing and product development

Head of Supply Chain

Plant Head

Head of
Administration Head of HR

Head of IT

Head of Internal Audit

Head of Technical Project

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Head of CSR
3.2 Information of some executives of BSRM:

Name Designation Picture Annual Salary Attendance Total Annual

(BDT) Fees (BDT) Salary (BDT)
Mr. Chairman 38,700,000 46,000 38,746,000
Alihussain
Akbar Ali
FCA

Mr. Aamier Managing 33,300,000 46,000 33,346,000

Alihussain Director

Mr. Zohair Director 17,100,000 40,250 17,140,250

Taherali

Mrs. Director 9,900,000 31,625 9,931,625

Tahseen
Zohair
Taherali

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 Mr. Mono Independent - 172,500 172,500
Ranjan Dey Director
FCA

4.0 Situational Analysis:

Situation analysis is must for identifying the internal and external environment of an
organization. We divided this term into two parts which are internal factors and external factors.
For making these, we have researched past data of the organization and also gathered
information through interview session. Now we have presented the situation analysis of the
BSRM below:

4.1 Analysis of Internal Factors:

There are some factors which are affecting the BSRM’s environment internally are given below:

4.1.1 Strong Corporate Culture:

BSRM believes that if their organization follows a dynamic culture, their employees will become
more productive and creative. For this reason, BSRM has established a strong culture in their
management system. First of all, they are very serious about the discipline of their employees’.
For an example, HR department of BSRM has made rule for every employees to arrive in the
office at right time. For monitoring it, they are checking the attendance time of every employees
regularly by using software. If they notice that some employees don’t follow their rule, then they
will call a meeting with those employees and warn them not to do late in the future. Even then if
employees don’t come in office in the right time, HR department will give them punishment by
cutting minimum percentage of money from their remuneration. That is why employees of the
BSRM are aware about the time management and obeying the rule strictly. Besides, HR
department also evaluate the get up of their employees. Employees have been ordered to wear
formal dress. This is all about discipline of Employees. Then they have established strong culture
in their corporate tasks too. First one is that they are very people oriented. It means they always
determine to give the best service to their consumer. For this reason, they are giving detailed

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information about the products of BSRM and explaining why BSRM is the best among all other
steel industries to customers very well. Authority also gives opportunity to the customer that they
can test the products by any other third party organization so that they can get actual information
about the products of BSRM properly. Besides, Employees’ are very sincere of their outcome.
When they plan a project, they predict a tentative outcome of their project and set the strategies
how they gain that outcome. They also evaluate their activities regularly while working on the
project and it helps them to reach their outcome as soon as possible. Being team orientated is
another strong thing of the culture of BSRM. At present BSRM has become the market leader in
the steel industry of Bangladesh because of capturing highest market shares among all other steel
companies and they could able to make it possible because of their strong team work. They are
still emphasizing on their team work so that they can reach their future goals as soon as possible.
And finally they are very innovative in regards of producing products. They occasionally launch
new products in the market for increasing the attractiveness of their culture. They have already
launched various products which are XTREME, MAXIMA, ULTIMA, XTRONG, CENTURA
and Square Bar. They don’t stop yet by innovating those products. The product development
team of BSRM are working on this issue regularly so that they can bring new products in the
market in future. This is why the authority of BSRM considered it as a significant part of their
strong culture[ CITATION MrD18 \l 2057 ].

4.1.2 Activities of Raw materials sourcing:

At the current time, BSRM depends on the MS Billets as their partly raw materials in the global
market. But the price of MS Billets in the international market is getting fickleness and this is
why it is very tough for BSRM to maintain the production cost and also the profitability is
getting influenced. They also identified that if they increase their production 700,000 M. ton per
annum, they will give high priority to ensure the demand of MS Billets. For this reason, BSRM
had taken some initiatives for maintaining the production cost. Bangladesh Iron and Steel Co.
Ltd. (BISCO) which is a conducive company of BSRM can accomplish the one-fourth of its
billets demand by contributing 220,000 M. ton MS Billets per annum. Besides BSRM Still Mills
Limited which is another conducive company of BSRM can fulfil the 65 percent of its billets
demand by supplying almost 500,000 M. ton billet per annum[CITATION BSR17 \p 54 \l
2057 ].

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BSRM is not done yet by taking those initiatives for producing MS Billets. They have recently
designed a dynamic plan for producing MS Billets. They have decided to invest 725 cores taka
for setting up a melting plant of BRSM steel Limited at Mirasai in the port city where MS billets
will be produced. Executive Director of BSRM, Mr.Tapan Saha said to the daily star, “this plant
will have the capacity to produce 4.3 lakhs M. ton MS Billets and adding that these products will
be used for accomplishing the current demand of MS Billet of BSRM. This plant will be starting
the production within 2019[CITATION The161 \l 2057 ].” So we can consider that they don’t
compromise on raw material sourcing for maintaining the production cost and it has influenced
the BSRM’s internal environment efficiently.

4.1.3 Ensuring the demand of Power Supply:

In an organization, Resources of power supply play a vital role for maintaining their production
capabilities. At present, Bangladesh is not well established in this sector. For this one reason,
many industrial investment plans have been rejected. According to the demand of steels, BSRM
is the number one brand in the market and for that they have to produce huge amounts of steels
throughout the year. So, Unfailing power supply plant is badly needed for BSRM so that they
can keep maintaining their production growth and the good news is that BSRM has taken a great
initiative for ensuring incessant power supply. They have made an agreement with Power Grid
Company of Bangladesh Limited and set up a substation for using power from the 230 KV
national grid. So, we can conclude that this initiative of BSRM helps them to fulfil their power
supply demand because more than 10,000 MW can be produced from that power grid. It will
create a significant impact on their internal environment[CITATION BSR17 \p 54 \l 2057 ].

4.1.4 Maintaining production cost by minimizing Interest Rates:

BSRM is the market leader among all steel industries of Bangladesh. They are fulfilling the
majority amount of demand of steels in Bangladesh in every year than other steel companies in
our country. If we see the financial statement of BSRM, they have earned 49,949 million BDT
revenue and 7354 million taka gross profit in the year of 2016-17[CITATION BSR17 \p 17 \l
2057 ]. So we can easily understand that they have to invest a huge amount of capital for earning
that amount of revenue. For this reason, they have to take a huge amount of loan from bank for
ensuring the huge capital and maintaining their production growth. Besides they have to
reimbursement their loan with a certain amount of interest rates. It also effects on their

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production cost because it can fluctuate at any time. It totally depends on their professional
activities and BSRM is aware of this and working on this issue regularly so that they can
minimize their interest rates. Their activities help them to get some extra benefits to maintain the
production cost. They have already taken some initiatives for reducing the interest rates. For that
they build a discreet financial management for monitoring it. Besides they do active intercession
with the lenders. And they collect their product’s money from the consumers’ timely. By doing
those activities for minimizing the interest rate, BSRM makes their internal environment stable
and specially for production cost purpose[CITATION BSR17 \p 54 \l 2057 ].

4.1.5 Dynamic Human Resource Department and their functions:

HR department of BSRM has been playing a vital role in developing their business management.
The dynamic HR team of BSRM is responsible for gaining BSRM’s huge success in today’s
market. They believe in “Being an employer of choice”. It means they are motivating their
people for being a future leader. They always give first priority to their human assets. This is
why BSRM provides them non-violent work environment and consistent working culture so that
their employees can heighten their creativity and performance. In the recruitment process, BSRM
always gives priority in talent acquisition so that they can easily attract the workable applicants
for their company to reach the main goals. For this reason, HR department of BSRM follows
well-designed aptitude for conducting interview system so that they can easily identify the right
candidate for their organization as they are usually organizing the bias-free, independent and fair
hire process for betterment of the company. BSRM believes that if the employees of them learn
the culture positively, they will be being passionate about their tasks and will play the role in
production growth of the company. So they sometimes conduct the methodical, systematized
Training and Development activities and they assure to provide the ample developmental
amenities for all employees[CITATION BSR17 \p 65 \l 2057 ]. Our interviewee, Mr. Dibakar
Biswas told us about two training session where he had participated. First one is “sales mastery”
which is a day long course and he attended that training session in the year of 2017. In that
session, he had learnt different selling techniques. By applying those techniques in the real
market, he is able to sell the products at a good price and also a good amount of quantity than
before. Then he talked about another training session which is “Aspire. Perspire. Inspire.” It is
about motivational training session where he had mainly learnt that how an employee can find
out his own excellence for the betterment of the business, how to overcome from barriers while

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working on a particular portfolio and what types of things a seller should think before dealing
with the customers[ CITATION MrD18 \l 2057 ]. For ensuring a safe working environment, the
HR department of BSRM created Health, Safety and Environment policies. BSRM always treats
their every employee like an asset and therefore they focus on Benefit policies. Because of that
policies, employees get Festival Bonuses, Provident Fund and Interest free loan for car scheme,
children education scheme etc. HR department of BSRM also gives rewards and appreciation to
their employees who actually do an outstanding performance for the betterment of the company.
As a result, employees get motivation to give better performance in the future[CITATION
BSR17 \p 66 \l 2057 ].

4.2 Analysis of external of factors:

In below, we have used PESTEL analysis tool for identifying external factors of BSRM:

4.2.1 Political Factor:

For any company or industry, the political condition of its respected country where they do
business plays a vital role. BSRM is not excluded from them, Bangladeshi political system and
conditions also has impact on them. There are some political issues described below which
BSRM considers as political factor.

1. Political Uncertainty: Nowadays, political situation of Bangladesh is much stable compare

to the past. So, lately they are not facing any political issues. But when the situation wasn’t
stable, they faced a hard nut to crack as the distribution channel was hampered badly.
During the political violence they couldn’t supply their products timely, in fact sometimes
they failed to supply. An example of political uncertainty is when the national election of
Bangladesh on 2014 when they couldn’t supply their products consecutively in 7 days
because of patrol bombs. Besides, the drivers didn’t want to drive on that time as some of
them got injured before[ CITATION MrD18 \l 2057 ].
2. Foreign Trade Policy: They are abiding by all the rules and regulation implemented by
NBR and the tax commission. NBR applies two types of fiscal policy on them, one is ATI
and another one is VAT. As this VAT is export oriented, they get some discount on that
compared to local sales. In fact, while importing raw materials, they also got some cut offs
in paying tax according to foreign trade policy of Bangladesh as they use it on exporting. In

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 2016, they captured 3rd position among all the heavy industries of Bangladesh in terms of
exporting[ CITATION MrD18 \l 2057 ].
3. Labor Policy: According to international labor policy, a labor can work only 8 hours per
day. BSRM follows this law strictly in factory. Apart from in office, they can stick to this
policy as the goal of a private company is to maximize its profit. Therefore, sometimes for
the pressure of authority the employees have to work one or half hour extra depending on
the situation[ CITATION MrD18 \l 2057 ].
4. Trade Restriction: At present BSRM is exporting their products to India only. For this
they really don’t have any restriction because they supply through EPZ, it has been counted
as export also if they sell their product to abroad, it is counted as export. So there is no trade
restriction on them so far[ CITATION MrD18 \l 2057 ].
5. Tax policy: They are successful to meet all the tax and vat payments which are issued by
government every year. It generally varies every year according to their sales. However,
Mr. Dibakar Biswas confidently said that they are the 100% tax paid company [ CITATION
MrD18 \l 2057 ].

4.2.2 Economic Factor:

A company always wants to do business after analyzing the economic condition of where they
planned to do business. No Entrepreneur wants to invest in such a country where the economic
growth is very squat, inflation rate is so exorbitant. Some economic determinants of Bangladesh
which BSRM thinks have impact on them are given below:

1. Economic Growth:
 Impression over company
It is a big factor to them to explain it. Mr. Dibakar Biswas brings out the illustration of
the houses. 20 years back in villages, there weren’t so many houses which are made up
with concrete but now days most of them have been converted into concrete. Therefore
their sales have been boosted up. He added that “Before 20 years nobody can’t imagine
about, “Padma Bridge” but now it’s bound to happen and BSRM is providing rods to it.
According to him it’s because of the economic expansion[ CITATION MrD18 \l 2057 ].
 Their Footprint on Economic Growth

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 According to Mr. Dibakar Biswas, there are approximately 3000 families are related and
depended upon BSRM. Economic Growth of an employee depends on the growth of
his/her respected company. As the sales of BSRM are increased by 10% every year, it
means company is fattening. So the income of employees and labors are also going up.
He added that inflation rate of Bangladesh is much higher if BSRM couldn’t cope up
with the rate, life standard of staffs might fall. Since it didn’t happen, BSRM obviously
has some impact on economic growth of Bangladesh[ CITATION MrD18 \l 2057 ].

2. Interest Rate:
 Impact on company
As BSRM do repayment on time, they have a great reputation on banking sector. They
deal with almost 60%-70% banks of Bangladesh. As the interest rate is calculated by
comparing inflation rate, they didn’t face that much issue with interest rate of
Bangladesh[ CITATION MrD18 \l 2057 ].
 Impact on their customer:
Though the interest rate didn’t affect them directly but it affects their customer who are
intended to do any construction. For that he gave us an example, when the interest rates
of home lone increases, their sales may go down in some cases[ CITATION MrD18 \l 2057 ].
3. Inflation Rate: Bangladesh isn’t a stable country in terms of inflation rate. So every year
the price of BSRM’s products are also increasing. Therefore, some customers lose their
abilities to buy BSRM’s products. Whence BSRM is losing some shoppers [ CITATION MrD18
\l 2057 ].
4. Disposable Income: The mission of every private sector is to maximize their profit. So, no
private company can’t be satisfied with their disposable income but as BSRM is successful
in their every year’s plan and target, they shouldn’t be dissatisfied. However, Mr. Dibakar
Biswas discloses that it’s totally up to the top management. To increase disposable incomes
every year they make an estimation of how much units have to sell for pyramid profit. They
play with price to maximize their profit[ CITATION MrD18 \l 2057 ].

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4.2.2 Socio-Culture Factor:
1. Population Growth Rate: As BSRM is a construction related company so population
growth rate plays a vital role to them. Mr. Dibakar Biswas counted it as blessing. For this
he gave us an example that in past there were a few universities. But for population growth
the number of universities are increasing day by day and they got a new market to serve. He
mentioned that NSU also used BSRM’S rods for their construction. Regardless, population
growth means more house, more bridge and more construction. So, population growth
increases their sales. We have analyzed their net sales of 2012, 2013, 2014, 2015, 2016 and
2017[CITATION BSR17 \p 24 \l 2057 ] and we found that sales are really increasing as the
population is going up. But we noticed, sales of 2015 weren’t with the flow as our
political situation wasn’t stable. To make it easy, we have provided the graph of net sales
of BSRM from 2012 to 2016-17 below:

Net Sales Qty (M. Ton) of bsrm

MT (Qty.)

1,066,251

679,803
579,376 601,935 604,513

2012 2013 2014 2015 j an '1 6 -J u n e'1 7

2. Cultural Barriers: The cultural factors do not put impression that much for this kind of
heavy steel industry and the market. They are very concern about culture while making
marketing strategies and they try to make people realize that they deliver the safest and the
best products. They do not really engage culture in their manufacturing process and there is
no cultural barriers related to their products. [ CITATION MrD18 \l 2057 ].
3. Safety prominence: “Building a safer nation’ this is the tag with which BSRM came up. It
means safety is their first concern. To meet it they do everything what needs to be done.

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 The main criteria of rod production is the “quality”, for maintaining it in each 15 minutes, a
sample from running production is tested to ensure product quality. Besides, if the
consumer have any confusion, they could test it by themselves from BUET, KUET, RUET
and furthermore[ CITATION MrD18 \l 2057 ].

4.2.4 Technological Factor:

1. Technological Incentives: Before 2005, BSRM wasn’t that much efficient and they were
not able to produce their product according to customer demand. During that period
customers had to wait long period of time to get their ordered products. Therefore, they had
modified their production houses with highly automated and competitive types of
machinery which are designed based on European technology to become more efficient so
they could minimize their cost and also be able to deliver timely as their production was
increased. Though their products are costly compare to other companies but it’s not too
much considering the quality as by developing the technology they nailed to minimize
cost[ CITATION MrD18 \l 2057 ].
2. Level of Innovation: They put product development to their top priority. According to Mr.
Dibakar Biswas, they can’t sustain in the long run if their company don’t develop their
product. He added that if a shopping mall or Mosque use the rods which are produced for
general building, the shopping mall or the Mosque won’t sustain so long like “Rana Plaza”
as the same mistake was made here. So, they continuously try to develop their product
regarding market demand and purpose of using[ CITATION MrD18 \l 2057 ]. For that BSRM is
very creative in terms of level of innovation. As a result, they have already brought
different kinds of products in the market and the details of the products are given below:
 Xtreme:
In 2008, BSRM had introduced Xtreme to market. It is one of the best reinforcing steel
product which was designed for general purpose. It is generally used in for construction
commercial and residential building and bridges which are formed to carry medium and
high weights. Now, it has become the first choice among all steels to the home
builders[ CITATION BSR186 \l 2057 ].

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 Maxima:
It is 80 graded product and stronger than Ultima. A building is consist of two structure
one is super-structure and another is sub-structure. Maxima has been created to build any
building’s sub-structure, it means for the basement. It is generally used for making
shopping mall, bridge, culvert etc. Regardless if anyone uses it for their construction of
building in basement, the building will be long lasting[CITATION BSR \l 2057 ].

 Ultima
Bangladesh lies in the earthquake active zone. There were several earthquakes occurred
in our country in past couple of years, some buildings collapsed also some buildings
structures were affected. For this reason BSRM designed a special kind of product by the
instruction of Bangladesh National Building Code (BNBC) which won’t be affected by
this types of quacks, named Ultima. It can be used in any dynamic infrastructures like for
hospitals, schools, airports and so more[CITATION BSR185 \l 2057 ].

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 Xtrong
The market name of this product is Xtrong345. Two types of shapes fall under Xtrong,
one is angle and another one is channel. It is basically 75 graded material. Nowadays
there are so many buildings which are constructed following steel structure like factories,
warehouses etc. For this kind of structure Xtrong was designed. The building which will
be constructed using Xtrong would be long lasting and earthquake tolerable compare to
non-grade material[CITATION BSR187 \l 2057 ].

 Centura
They named this product Centura because it has a lifetime of 100 years. It is actually
made of a unique raw materials named epoxy coated bar. So, it can stay rust-less for long
time. Generally, Centura is especially made for particular projects which usually situated
in coastal areas because epoxy coat protects them from salty water and this is why those
projects will last for long period of time. As epoxy coat doesn’t produced in Bangladesh
so they have to import from abroad. Therefore, the price of Centura is much higher than
others[ CITATION BSR183 \l 2057 ].

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  Square Bar
It is the latest product of BSRM which is square shaped, launched on 2018 and obviously
a graded product. The main difference between BSRM’s square Bar and others is the
density. Square bar of other companies has hollow inside but BSRM’s square Bar is just
like rods, totally solid. So, lasts for long period of time. It is created for making grills of
windows, gates etc.[ CITATION MrD18 \l 2057 ].
3. Technological Awareness: As they use machinery for manufacturing various steel
products which are designed deploying State of the Art European Technology, are highly
automated and competitive. Besides their staffs are highly trained. So, there is no scope to
make any blunder. Moreover, to integrate the operation of basic functions, BSRM also
implemented Oracle e-Business Suite namely, Finance and Accounts, Sales and Marketing,
Supply Chain, Inventory, Maintenance, and Manufacturing[CITATION BSR17 \p 67 \l 2057 ].

4.2.5 Environmental Factor:

1. Weather: During the rainy season they face a significant change in their sales as during the
monsoon season, the construction related works don’t take place that much, their sales go
down. However, they can’t reduce the production on that time as it’s not easy besides if
they reduce, it will quite hard to increase it overtime. So, not to face any shortage in future
they maintain the current production and reservation. As percentage of construction related
works increasing day by day, product doesn’t get damaged[ CITATION MrD18 \l 2057 ].
2. Environment policy: They have taken so many steps to keep their human resources safe
and sound as well as the environment clean. They always try to uphold work place safe,
secure and want to make sure the green environment for all of their staffs also for the
country. As a result, they are using world class Water Treatment Plant for recycling the
water for reusing and to retain the environment free from contamination. Besides, in BSRM
Iron and Steel Co Ltd., BSRM has already bespoke Air Pollution Control system to keep
the air pollution free. Moreover, a rain water harvesting project is almost completed for
their new billet casting plant at Mirershorai. They are expecting that it might put a
marvelous optimistic impact on the environment [ CITATION MrD18 \l 2057 ] . For keeping the

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 environment clean and greener, they had been awarded the “Divisional Environmental
Award” by Poribesh Odhidaptar[ CITATION BSR17 \l 2057 ].
3. Pressures of NGO’s: They give much gravity for CSR that has created good images to
NGO’s. Also they maintain all the rules which are given by the government for
manufacturing company. So, NGOS can’t put much pressure on them [ CITATION MrD18 \l
2057 ].

4.2.6 Legal Factor:

1. Legal Issue: Their top management is very concern about anything related to government.
Mr. Dibakar Biswas claimed that they are 100% tax paid company. Besides they use
automated machine to pay VAT so there is no chance to face any legal issue [ CITATION
MrD18 \l 2057 ].
2. Employment law: They are strict about employment law. After recruitment of new staffs
they give them a training which is included in the employment law, they try to teach them
their organizational culture which is totally designed following employment law [ CITATION
MrD18 \l 2057 ].
3. Consumer protection: They put their consumers to their first priority. Their tag line also
demonstrate that. BSRM does anything what needs to be done to protect their consumer so
they strictly follow the standard given by BSTI, which is BDS-ISO6935-2:2016 [ CITATION
MrD18 \l 2057 ].

5.0 Porter’s five forces:

This tool is actually using for identifying the external attractiveness of an organization. There are
five determinants in the porter’s five forces which we have presented in the following figure. For
analysing these determinants, we asked several questions in the interview session and we are
describing the attractiveness of BSRM below based on the answer of the interview questions:

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 Figure: Porter’s Five Forces

5.1 Threat of new entrants:

It defines how difficult for an existing organization to run their business when a new competitor
arrives in the industry of same category. This determinant is low for BSRM because of several
reasons which are given below:

 The first reason of low threat of new entrants is superior brand power of BSRM. As we
know that BSRM started their business since 1952. From this long period of time, they have
been dominating in the market as well as they have also created remarkable brand power in
the steel industry by earning highest amount of revenue, providing high quality products
and expanding the business internationally. This is why it is very much tough for a new
organization to dominate in the steel industry against BSRM.
 Another reason is huge paid up capital of BSRM. “Paid up capital defines the capital of
an organization that are received from shareholders by selling its’ share in the stock market [
CITATION Inv18 \l 2057 ] .” If we compare the following chart, we can see that BSRM is
getting the highest paid up capital from the stock market among other current known steel
industries of Bangladesh. The reason is that BSRM has been running their business
successfully for a long period of time and it encourages the shareholders to invest in the
BSRM. So it is easy to understand that a huge paid up capital is needed for a new company
if they want to compete with BSRM which is roughly impossible. Because Shareholders
don’t have enough knowledge about new company and this is why they don’t want to invest
their money in the new company[ CITATION MrD18 \l 2057 ].

Name of the Company Paid up capital (mn)

BSRM 3417.75[CITATION Dha18 \l 2057 ]

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 GPH Ispat 3274.43[CITATION Dha181 \l 2057 ]

RSRM 1011.89[CITATION Dha182 \l 2057 ]

Chart: Paid up capital of different steel companies

5.2 Threat of Substitutes:

It refers that how much risk of changing a particular product by taking a substitute product which
is from another industry. The effect of this determinant of BSRM is low because there is no
existence of high quality substitute product in the market. As we know that BSRM is an
organization who is manufacturing and supplying rod in the market. Basically rod is mainly
using for building houses. In our country, tin and bamboo are the common substitute products of
rod for building houses. But these products cannot give proper safety to consumers. Because our
country is a land of calamity. Every year floods and cyclones have been occurring in our country
in multiple times. For this reason those houses which are made by tin and bamboo have been
destroyed since the past years when floods or cyclone happened. This is why consumers are
moving away from those weak substitute products and starting to use rod for building houses to
ensure maximum safety at present time. In addition Bangladesh is also earthquake prone country.
A quite number of earth quake had occurred in our country. But in this regard no substitute
products can not suitable for tolerating the earthquake except rod. It’s also good to keep in mind
that the special rod of BSRM named BSRM Ultima which is the well-known earthquake tolerant
product which has been certified by American Concrete Institute and Bangladesh Building
National Code[CITATION BSR185 \l 2057 ].

5.3 Bargaining Power of Buyers:

This determinant refers that how an organization is influenced by their buyers. BSRM is low in
bargaining power of buyers for some motives. We are describing those motives below:

 The first reason is that availability of information of BSRM’s products for Buyers.
Basically BSRM sales their products to consumers through their authorised dealers. When
the authority of BSRM recruit an authorised dealer, they will tell the dealers about their
products and especially price related issues. So if someone wants to be an authorised dealer
of BSRM, they will have to follow all price criteria which are given by BSRM authority. As

Page | 24
 a result, Buyers will get opportunity to know authentic price related information from the
authorised dealer at the time of buying product and also there is no chance for buyers to
bargain with BSRM.
 Another reason is huge market reputation of BSRM because they are the only company
who could sell more than 1 million MT rods in the year of 2016-17. The products of BSRM
are certified by BUET and many other national and international institutions as the safest
products than all other random steel company of Bangladesh though the price of the
products of BSRM are comparatively higher than others. But in regards of the rod, Safety
matters more rather than price and this is why majority consumers choose BSRM
first[ CITATION MrD18 \l 2057 ].

5.4 Bargaining Power of Suppliers:

It refers that how the organization is influenced by their suppliers of raw materials. In regard to
this determinant, the condition of BSRM is low because of several reasons which are given
below:

 First reason is that availability of suppliers of raw materials. A huge number of suppliers
for raw materials of rod exist in the international market. As a result, BSRM has many
alternatives for choosing the supplier. In this regard BSRM follows tender policy to choose
their suitable supplier. First of all BSRM usually releases the circular of the tender in the
international market. After releasing the circular of tender, a lot of suppliers will give their
quotation to BSRM. Then the company choose one quotation from all received quotation
which is efficient for their company.
 Besides BSRM has some own raw material sourcing plants which is another reason for
low bargaining power of suppliers. In here, they are producing the costly raw materials of
rod named billets to fulfil the maximum percentage of their whole demand of billets. As a
result they can able to reduce the production cost. The name of their first raw material
sourcing plant is Bangladesh Iron and Steel Co. (BISCO) which are fulfilling 25% of whole
demand of billets. Another company named BSRM Steel Mills Limited which are also
fulfilling 65% of whole demand of billets. Then they have planned to extend the billets
plant by establishing another billets plant at Mirasai, Chittagong which will start to produce
within the year of 2019[CITATION BSR17 \p 54 \l 2057 ]. This is how the BSRM authority

Page | 25
 decreases the dependency on billets suppliers and makes the bargaining power of suppliers
low[ CITATION MrD18 \l 2057 ].

5.5 Industry Rivalry:

This determinant means that how much competition is going on between all competitors in the
same industry. In regard to this determinant, the condition of BSRM is low due to some causes
which are presented in the next page:

Powerful competitive advantage is the main reason of BSRM for being low in industry rivalry.
Interviewee said to us that BSRM has accomplished several activities which has made them
more advance and unique than other steel companies in Bangladesh. Those activities are given
below:

 The current average sales growth of BSRM is around 1.5 million MT per year and this is
the highest sales growth among all other steel companies in Bangladesh. No steel
companies can’t reach that amount of sales growth yet.
 BSRM is the first Bangladeshi steel company who extended their business internationally in
India. Now they have planned to extend their business in Kenya.
 BSRM has made agreement with PCBG to establish 230kv power supply plant so that they
can enhance the production growth by ensuring continuous power supply.
 BSRM is the only steel company in Bangladesh who has several raw materials sourcing
company.
 BSRM has first modernized manufacturing system by establishing fully automotive
manufacturing machine in their factory among all other steel companies.

By accomplishing those activities, BSRM is able to create strong competitive advantages among
other local steel companies in the steel industry of Bangladesh. This is why BSRM is considered
as low in industry rival[ CITATION MrD18 \l 2057 ].

5.6 Outcome:
Name of Determinants Impact of Determinants Outcome
Threat of new entrants Low In regards to BSRM, 5
Threat of substitute Low determinants of porter’s five
Bargaining power of buyers Low forces are low. So we can say

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 Bargaining power of suppliers Low that the organization is very
Industry Rivalry Low much attractive.

6.0 Swot Analysis:

It is necessary for exploring the external and internal factors of the company. Here we discuss
about the BSRM’s strengths, weaknesses, opportunities and threats through swot analysis. In
here, strengths and weaknesses are the sections of internal analysis and opportunities and threats
are the sections of external analysis. We have researched different papers and asked several
questions to interviewee for making these:

Page | 27
 Top Position at Market
Huge Competitve Advantages
Strong Distribution
Strong Team Work
Strength
Modern Equipment

Dependency on overdraft
Lack of power supply
Weaknesses Not Satisfcaotry Performance in Supply Chain Management

Market Mastery
Cosmopolitan Growth
Enlarging demand of the product
Opportunities

Opponents
Economics Crisis
Labor Union
Government Policy
Threats Political Uncertainity
Infrastructure Development

6.1 Strengths:
1. Top position in market: According to Mr. Dibakar Biswas, they are the market leader in
steel industry in Bangladesh, they have already captured around 28% to 30% market share
considering all grades. No competitor is close to them and they don’t think competitors can
reach them because they are the first steel company in Bangladesh. Besides they are
exporting their product to abroad also their brand value is much higher than
others[ CITATION MrD18 \l 2057 ]. In addition we have got to know about market shares
of whole manufacturing steel companies on Bangladesh from an article of Dhaka Tribune.

Page | 28
 According to that article, BSRM captures individually 30% market shares and this is the
highest amount of captured market shares for a steel company in Bangladesh. Besides
KSRM, RSRM, Anwar Ispat, Shafiul Alam Steel, Shahriar Steel mills jointly capture 50%
market shares of the whole steel market and then the remaining 20% market shares are
captured by Rahim Steel, Bandor Steel and Abul Khair Steel[ CITATION Dha184 \l 2057 ].

Market Share of different steel companies in

Bangladesh.
BSRM
KSRM, RSRM , Anwar Ispat,
Shafiul Alam Steel , Shahriar
Steel mills
20%
30% Rahim Steel , Bandor Steel
and Abul Khair Steel

50%

In the context above, we can conclude that BSRM has gained top position in market by
possessing the highest amount of share individually.

2. Huge competitive advantage: Our interviewee, Mr. Dibakar Biswas thinks their first
competitive advantage is their employees because of their standard recruitment process.
They recruit staffs who are very dynamic and have potential. After recruitment, they give
them a training about 6 months, if anyone fails in that training session then it has been
extended 3 months more. Their 2nd competitive advantage is the quality of their product
and services. Everyone knows about their product’s quality and they try with their level best
to provide the best service. Moreover, BSRM put effort to maintain customer
relationship[ CITATION MrD18 \l 2057 ].
3. Strong Distribution: They work hard in the whole year for their distribution channel. They
have 10 distribution points across Bangladesh and also there are almost 600 dealers who are
serving their products to people. In addition they are exporting rods to our neighbor country
India. As during rainy season, demand of their products decline in some extent, so on that
time they fill their warehouses in full to enjoy the distribution facilities throughout the peak
season[ CITATION MrD18 \l 2057 ].

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 4. Strong Team Work: Their organization culture is quite based on team work. Hence they
train employees very hard so that they can adopt the culture of team work very fast. Mr.
Dibakar Biswas said the main reason why BSRM is now a top brand, is the outcome of
their culture of team work. They are the first steel company in Bangladesh who made a
brand value because before 1952 people can’t imagine there could be brand of
steel[ CITATION MrD18 \l 2057 ].
5. Modern Equipment: Before 2005 if anyone went by the site of BSRM’s factory, they felt
too much heat. However now if anyone enter in the factory, they won’t able to find where
the production is going on. It’s the result of their modern equipment. They modified their
production factory with automated machines which are designed based on European
technology. Therefore they were able to boost up their production and were able to reduce
the cost. Also the staffs find a good environment to work in. Whereas their most of the
competitors can’t enjoy these facilities.

6.2 Weaknesses:
1. Dependency on overdraft: BSRM is a huge manufacturing company so obviously they
can’t run the business without taking loan from bank. However, the amount of loan is too
high so they have to pay a huge amount of money to cover the interest, it effects their net
profit awfully. As their total amount of reinvestment isn’t sufficient, they can’t help leaving
dependency on lone[ CITATION MrD18 \l 2057 ].
2. Lack of power supply: Like other big industrial companies they don’t have their own
power plant. So, they have to rely on government. As Bangladesh isn’t enriched in
producing power, it’s too much costly to buy power from government. However, in the
recent past they have taken the initiative to found a power plan which will be capable to
produce about 150 mega-watt power but it’s on processing[ CITATION MrD18 \l 2057 ].
3. Not satisfactory performance in supply chain management: Sometimes the BSRM
authority fail to predict the actual situation of market. That’s why supply chain fell under in
trouble. Just like on this year from January to March the condition of their supply chain was
too bad. The capacity of their supply chain was about 1 lac to 1 lac 10 thousand Metric Ton
per month but their average sales per month was about 1 lac 50 thousand to 1 lac 70
thousand Metric Ton on that time. It costed them a vast period of time to recover from the

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 back lock. However, they are not able to extent the supply chain because when the demand
falls it will cost them a way more[ CITATION MrD18 \l 2057 ].

6.3 Opportunities:
1. Mastery in Market: They have already captured the largest share in streel industry among
Bangladesh. So, they are the market leader now and they consider it as a big opportunity.
There is no people who got knowledge about streel industry but don’t know about BSRM.
Therefore, when any kind of construction work is initiated, the first name come out to
people’s mind about rod is BSRM. As a result demand of BSRM is increasing day by day.
General public or the government can rely on them without any kind of tension because
they are the largest and the best[ CITATION MrD18 \l 2057 ].
2. Cosmopolitan Growth: At present BSRM is the only one steel company in Bangladesh
who are exporting abroad. India is now the only one consumer and they are trying to
penetrate Indian market more. So, they are doing many workshop in India and negotiating
with Indian government to capture more market share. Besides, they have already taken the
initiative to found a factory in Kenya. As Kenya’s market is rising, they want to capture it.
Moreover, production cost in Kenya will much lower than Bangladesh[ CITATION MrD18 \l
2057 ].

3. Enlarging demand of the product: BSRM’s profitability and prosperity basically depends
on the GDP of Bangladesh. According to World Bank’s prediction it will be around 6.8%
for next couple of years, which is more notable if we compare to other developing
economies in Asia. For civil construction, economic growth is essential because it will
demand more high quality steel products. Stats shows that the average steel consumption in
Bangladesh is around 25 Kg, there is a chance it to be doubled by 2022. Also Bangladeshi
government has approved several policies which are investment friendly to woo foreign
investors. They always aware of any project initiated by government. Likewise, some
enormous projects like Padma Multi-Purpose Bridge, Rooppur Nuclear Power Plant and
Dhaka Metro Rail etc. have created demand for quality steel. BSRM has been selected to
supply specific steel for Padma bridge construction. Lately they signed an agreement with
government to supply rods for Rooppur Nuclear Power Plant. Moreover, civil construction
compasses their large number of market share[CITATION BSR17 \p 38 \l 2057 ].

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6.4 Threats:
1. Opponents: When BSRM was founded on 1952, there was no steel company in
Bangladesh. So, they used the opportunity to build customer relationships and customer
loyalty and enjoyed monopoly market strategy. Then some of steel industries like KSRM,
RSRM and GPH were established and captured some of market share. So, the market of
steel industry became oligopoly. Therefore, penetrating the whole market wasn’t possible
for BSRM. Though they are still the market leader but has lost many opportunities
because of the opponents[ CITATION MrD18 \l 2057 ].
2. Economics Crisis: If any kind of economic crisis occurs in Bangladesh, like others
BSRM will also face many problem. When any economy faces any crisis their interest rate
goes up government increases the tax rate. So, if it happens BSRM will have to pay more
money as interest to bank, which is obviously not a good thing for any company as it
decreases profit[ CITATION MrD18 \l 2057 ].
3. Labor Union: Unlike most of the private sectors, BSRM has a labor union and they are
working together. So far BSRM didn’t face any problem regarding labor union but as an
external stakeholder, labor union is kind of threat to them because as if it strikes for any
reason they will face problem[ CITATION MrD18 \l 2057 ].
4. Government Policy: Government policy is one of the biggest threats for any business
organization. If the government bills laws which are not business friendly like trade
restriction, BSRM will fall under uncertainty. Besides if government imposes a big
amount of tax on home loan, many people will lose the ability to build houses or to buy
apartments. So, steel industry will lose the demand of rods[ CITATION MrD18 \l 2057 ].
5. Political Uncertainty: Though recently political condition isn’t unstable but when
political violence occurs BSRM faces too many problems. Like during the national
election, their distribution channel has been hampered. They fail to deliver their product
timely and it puts a bad impact on their company[ CITATION MrD18 \l 2057 ].
6. Infrastructure Development: If the government doesn’t take new projects which are
associated with construction. BSRM will lose their largest market because Bangladeshi
government has occupied a big percent of their market share. Hefty government projects
like Padma Bridge, Kornofuly Bridge and Gulishthan-Jatrabari fly over, all have one thing
in common that is BSRM inside[ CITATION MrD18 \l 2057 ].

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7.0 Objectives:
Objective refers that certain targets of an organization. All kinds of employees of an organization
are playing their role based on the objectives. Besides top level management of the organization
establishes strategies to accomplish the objectives of an organization. This is why every
organization must have some objectives. It helps them to enrich their productivity. As a
prominent company, BSRM has also objectives which we had known from the interview session.
Now we are presenting below the objectives of BSRM in details:

7.1 Increase Business Capital:

BSRM is one of the most renowned companies in the steel industries of Bangladesh. In the year
of 2016-17 they earned highest revenue among all other steel companies of Bangladesh. For
earning that much of revenue, BSRM had to invest huge amount of Capital. Their main source of
their business capital is the bank loan. For that they have to pay certain amount of interests to
bank regularly which is their main obligation to increase the business capital. For this reason
BSRM has established some strategies to reduce the interest rates so that they can accomplish
their objective. Firstly, they have set up dynamic financial management team who are regularly
monitoring the whole financial related issues. Then they have created new policies such as active
communication with lenders and collect money from customers in time. Besides, Marketing team
of BSRM are making polices to increase the sales growth as they can increase the amount of
profit. It’s good to keep in mind that the marketing of BSRM team usually target in the
beginning of every year to increase sales growth about 5-10% than current sales growth which is
their mandatory policy. Then they set up all marketing strategies based on their mandatory policy
and this is how BSRM increases sales growth and as well as profit too. As a result BSRM can
increase their turnover through taking money from their earning profit[ CITATION MrD18 \l
2057 ].

7.2 Encourage shareholders to invest in Stock Market:

Here is another objective of BSRM to increase the business capital of company. In 2009, BSRM
enrolled itself in the Dhaka Stock Exchange so that they can create another source of earning
capital from the shareholders by selling their share. This is why BSRM usually takes strategies to
develop itself in the stock market so that shareholders can get motivation to invest more in the
BSRM. For this reason, BSRM organizes annual general meeting in every year where they can

Page | 33
make opportunity to talk with all their shareholders directly. In the annual general meeting,
BSRM authority usually shares their success, future plan to their shareholders and also they can
know desire demand which their shareholders want from them. As a result shareholders get
encourage to invest more in the BSRM[ CITATION MrD18 \l 2057 ]. This is why equity of
shareholders of BSRM is increasing in every year. We will easily understand if we see the
following graph that presents the equity of shareholders of BSRM from the year of 2012 to June
2017[CITATION BSR17 \p 66 \l 2057 ]. BSRM believes that it will increase more in future.

Shareholders' Equity of BSRM

12000
10000
Taka in Million

10342
8000 9081
7495
6000 6915
5541
4000
2000
0
2012 2013 2014 2015 Jan '16- June '17

Year

Shareholders' Equity of BSRM

Besides they give decent amount of cash dividend to their shareholders in every year so that they
can become motivate to invest more in BSRM. In 2017 they gave 35 percent cash to their
shareholders[CITATION Dha18 \l 2057 ].

7.3 Modernize Manufacturing System:

Before the year of 2005, BSRM was using manual machine for producing their products. As a
result they had to face a certain number of problems on that time such as their labour were not
fully trained to use the machine. For this reason, Labours of BSRM got injured often times due
to less technical knowledge. In Addition their industry wasn’t eco-friendly on that time. This is
why their industry affected the environment condition of that area harmfully. But at present time,

Page | 34
the company has already moved away from their backdated industry. Now they are using
automotive machines which actually are made to keep the safety of the labours of BSRM.
Besides they set up their modern industry based on the state of art of European technology.
Because of making air and water pollution free area, they have also established air pollution
control system, water treatment plant and rain water harvest project in their industry. It makes
their industry eco-friendly. They don’t stop here yet by doing those steps. The authority is also
aware about the latest technology. They are keeping knowledge about the current revolution of
technology because they never compromise to use the best technological equipment in their
industry in future. This is how BSRM is modernizing the manufacturing system in a well-
organized way[ CITATION MrD18 \l 2057 ].

7.4 Assure active teamwork management among all employees:

BSRM considered this as one of their major internal objective. The BSRM authority actually
applies this objective in their organization to establish strong teamwork skill among all
employees. This is why HR department conducts several seminars with existing all employees to
motivate them so that they can become a dynamic team worker. Besides HR department also
arranges workshop for new employees. As a result, new employees get to know that how an
individual employee can do his duty responsibly in a certain team. By establishing those
strategies, BSRM is able to amplify the teamwork skill and the productivity between all
employees[ CITATION MrD18 \l 2057 ].

7.5 Obtain the employees’ high level of self-assurance and professionalism:

Here is another objective to increase the productivity of all employees. BSRM believes that if
their employees have strong confidence and high professionalism, BSRM can be able to
develop itself day by day. For fulfilling this objective, HR department of BSRM generally
organizes different training sessions for employees. It is mandatory to presence of each
employees in the training session. From those training sessions, employee get to know how an
employee can do his duty in a dynamic way and also learn a lot of strategies which they can
apply in their profession and get success while working on a particular project. As a result an
employee can enrich their self-assurance and professionalism by participating those training
sessions[ CITATION MrD18 \l 2057 ].

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7.6 Involve in product and market development:
BSRM believes that they have to bring new products to reach different classes of consumers
what they actually need from the steel industry. Because the company knows very well that the
projects of every consumers is not built based on the same structure. Therefore, BSRM has been
bringing several products in the steel market which are Xtreme, Maxima, Ultima, Xtrong and
Centura. BSRM has innovated those products based on different particular structures which are
actually demanded by the consumers. In addition the product development team of BSRM is
habitually working on product development. They are essentially researching on the current
demands of consumers in the market. Besides they are keeping knowledge what types of
project’s structure are constructing in Bangladesh and abroad now so that they can able to
innovate and supply more new products to the consumers based on that information. By
following those strategies, BSRM has recently launched their latest product named “Square Bar”
in the year of 2018.

BSRM has been running their business successfully nationally since 66 years. Now they have
become the market leader in the national steel market. This extra-ordinary achievement actually
makes them more confident to extend their business internationally which is one of their
objective. For accomplishing this objective they first extended their business in India and got
good responses from there. Recently, they have already planned to extend their business in
Kenya because they think that current economic condition of Kenya is favourable for BSRM to
extend their business. Besides they are researching about current economic condition of different
countries so that they can find the more suitable new market where they can encompass their
business[ CITATION MrD18 \l 2057 ].

8.0 Management Issues:

In an article published in The Daily Star it was mentioned that- “Bangladesh today consumes
about 55 lakh tones of rod a year and has an installed production capacity of 70 lakh tones to 90
lakh tones[CITATION The18 \l 1033 ].” The demand for steel is booming, with it being said,
BSRM owns 30% of the country’s rod market share[ CITATION Dha184 \l 2057 ]. Holding such
a big market share in this economy has certainly bring forth many management challenges. In
light of the discussion of management issues, we will be discussing our findings about the good
and the bad things of BSRM.

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8.1 The good things of BSRM
As a successful and vibrant company, BSRM has quite the good sides which are mentioned
below-

8.1.1 The milestones

The company started back in 1952 and came a long way with many milestones which we
consider as the good sides of this company.

1. In 1952 , the company stared its journey with building the first steel rolling mills in the
country
2. In 1996, the company brought the largest billet making plant in the nation which is SMW
(Steel Melting Works).
3. In 2006, The Company brought micro reinforcement wires, below 8mm, for cutting costs to
benefit in the rural construction.
4. In 2009 The company entered into the Capital Market , its shares got listed with the
country’s premier bourses Dhaka Stock Exchange (DSE) Ltd. and Chittagong Stock
Exchange (CSE) Ltd. on 18 January 2009.
5. In 2012, BSRM maximized its capacity to 600,000 MT annually
6. In 2015 The company increased its from 600,000MT to 700,000MT annually, brought out
a new product and started trying a production of world’s biggest induction furnace based
on billet casting project.
7. In 2016-17, BSRM started to set up a new melt plant with a huge capacity and for the first
time their sales crossed 1 M. Ton[CITATION BSR17 \p 12 \l 2057 ].

8.1.2 Trade Relations

It is an achievement that BSRM could setup a subsidiary company in Hong Kong as it was a
decision from the board of directors. This setup will be engaged in delivering steel products and
inspecting raw materials for the BSRM Steels Ltd.[ CITATION Kha18 \l 2057 ].

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8.1.3 Awards:
BSRM has continued to dedicate itself throughout its lifetime towards success and achieving its
goals which is they were awarded for their accomplishments. Few of the awards given to BSRM
are mentioned in the below:

1. BEST BRAND OF BANGLADESH IN STEEL CATEGORY FOR 2011, 2013, 2014,

2015, 2016 & 2017
2. BEST ELECTRICITY CONSUMER AWARD 2015
3. IIUC BUSINESS AWARD 2014
4. JAPAN BANGLADESH CHAMBER OF COMMERCE & INDUSTRY (JBCCI) AWARD
2014
5. 5TH STANDARD CHARTERED - FINANCIAL EXPRESS CSR AWARD 2014
6. MERCANTILE BANK EXCELLENCE AWARD 2015
And BSRM were awarded other momentous awards[ CITATION BSR188 \l 2057 ].

8.1.4 CSR Projects:

BSRM being a huge company is liable to pay a huge sum of tax but it is seen that they are
heavily investing towards CSR Projects which is actually helping them to evade tax to a certain
degree. A few of CSR projects of them are given below:

1. Shopping outlets for the disabled individuals: The Company took an initiative to set up
shops for the disabled people back in 2017 and now they have finished setting up the shop
which is an achievement for the company[ CITATION BSR1810 \l 2057 ].
2. Forest Conservation: The Company took another initiative to join hands with HCMO to
support expanding tree plantation and other activities at landscapes to save the
forests[ CITATION BSR1811 \l 2057 ].
3. BSRM foundation medical centre: To help the poor and needy in rural areas BSRM has
planned to set up medical centres to cater all the medical services of the rural people with a
wide range of services starting from doctor’s consultancy to physical therapy [ CITATION
BSR1812 \l 2057 ].
4. Supporting free education: BSRM took an imaginative step towards giving out free
education to kids in need so it has established BURHANI BSRM School in 2006. The
company gave out free books, extra care to the weak kids, computer training and so on. It

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 has been seen that the board of directors are very careful to oversee this beautiful initiative
taken by the company[ CITATION BSR1813 \l 2057 ].

The company goes on to bring out more CSR projects in the upcoming years to have a better
society for everyone.

8.1.5 Landmarks:
The company has accomplish in completing many major projects for the betterment of the
infrastructure of the county which includes Hatirjheel project, Saidabad Water Treatment plant,
Mayor Mohammed Hanif Flyover and Shah Amanat bridge and the list goes on[ CITATION
BSR189 \l 2057 ].

8.1.6 Environmental aspect:

BSRM being a huge company also have to keep in mind about the affects they have on the
environment and they did so by taking two of the major steps to keep environment clean and
safe. The first step by BSRM was they implemented advanced technology to keep the air free off
pollution and secondly they invested heavily on water treatment by installing water treatment
planting systems[CITATION BSR1814 \l 2057 ].

8.2 Bad Things of BSRM:

If we want to put a finger on any bad thing of BSRM, it is really difficult to do so but every good
thing comes with a cost and through conducting an interview with a representative of BSRM we
got to know a cost or we can call it a failure of the company. The failure of BSRM was a
particular product they wanted to launch called TORSTEEL BAR which was firstly produced by
the company itself but didn’t make through the market as the demand for it was very poor and
didn’t suit the consumer needs for this particular product[ CITATION MrD18 \l 2057 ].

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9.0 Conclusion:
BSRM is one of the titans of construction industry in our country with a lot of milestones in its
lifetime. The future of BSRM looks luminous and strong as it comes up with strong strategies to
take down its challenges every year and looking forward to satisfy its clients as it has been from
the beginning and will continue to do so in the future. BSRM really represents sheer dedication
towards its success and to prolong its venture in the future in a continued successful pattern. This
company knows how to tackle challenging situations and overcome every hurdle and stand
strong in its place. BSRM not only takes care of its customers but also treats all of its employees
like important team members. Besides they really care about the activities which are related to
CSR. BSRM will continue to strive to deliver its products with highest standard of quality and in
a sustainable way keeping its customers in consideration forever.

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10.0 Appendix:
We visited the corporate office of BSRM on 14th August, 2018 for taking an interview session.
On that time, we took a picture with Mr. Zahiduzzaman, Lead sales of BSRM Steels Limited and
our interviewee, Mr. Dibakar Biswas, Sales-in-charge of BSRM Steels Limited.

In below, we have attached the visiting card of our interviewee:

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11.0 References
Biswas, M. D., 2018. Interview about manegerial fuctions of BSRM [Interview] (14 August
2018).
BSRM Steels Limited , 2018. BSRM Xtreme| Fatigue Tested Rods in Bangladesh. [Online]
Available at: https://www.bsrm.com/products/xtreme/index.html
[Accessed 27 August 2018].
BSRM Steels Limited. , 2018. BSRM Foundation Medical Center, Mirarsai. [Online]
Available at: https://www.bsrm.com/csr-projects-list/bsrm-foundation-medical-center-
mirsarai/index.html
[Accessed 28 August 2018].
BSRM Steels Limited. , 2018. FOREST CONSERVATION – FATIKCHARI, CHITTAGONG -
BSRM. [Online]
Available at: https://www.bsrm.com/csr-projects-list/forest-conservation-fatikchari-
chittagong/index.html
[Accessed 28 August 2018].
BSRM Steels Limited., 2018. A List of most appreciated BSRM Landmark Projects. [Online]
Available at: https://www.bsrm.com/landmarks/index.html
[Accessed 27 August 2018].
BSRM Steels Limited., 2018. BSRM Centura | Epoxy Coated Rebar Corrosion Free Structure.
[Online]
Available at: https://bsrm.com/products/centura/index.html
[Accessed 19 August 2018].
BSRM Steels Limited., 2018. BSRM Maxima| High Strength rod for High quality projects.
[Online]
Available at: https://bsrm.com/products/maxima/index.html
[Accessed 19 August 2018].
BSRM Steels Limited., 2018. BSRM protects the environment of Bangladesh with the
environment policy. [Online]
Available at: https://www.bsrm.com/quality/environment/index.html
[Accessed 28 August 2018].
BSRM Steels Limited., 2018. BSRM Won Awards for being Best steel Brands of Bangladesh.
[Online]
Available at: https://www.bsrm.com/awards/index.html
[Accessed 27 August 2018].
BSRM Steels Limited., 2018. Shop Outlet For Differently-Abled Person, Chittagong, BSRM.
[Online]
Available at: https://www.bsrm.com/csr-projects-list/shop-outlet-differently-abled-person-

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chittagong/index.html
[Accessed 28 August 2018].
BSRM STEELS LIMITED, 2016-17. ANNUAL REPPORT , Dhaka: BSRM STEELS LIMITED.
BSRM Steels Limited, 2018. BSRM Ultima | Best Reinforcing Steel with Strain Hardening
Property. [Online]
Available at: https://www.bsrm.com/products/ultima/index.html
[Accessed 14 August 2018].
BSRM Steels Limited, 2018. SUPPORTING FREE EDUCATION, BURHANI BSRM SCHOOL,
CHITTAGONG. [Online]
Available at: https://www.bsrm.com/csr-projects-list/bsrm-training-centre-at-durgapur-sharsha-
jessore/index.html
[Accessed 28 August 2018].
BSRM Steels Ltd., 2018. BSRM is the leading steel and rod manufacturing company. [Online]
Available at: https://www.bsrm.com/about-us/index.html
[Accessed 16 July 2018].
BSRM Steels Ltd., 2018. Check out the growth history of BSRM Bangladesh. [Online]
Available at: https://www.bsrm.com/about-us/history/index.html
[Accessed 15 July 2018].
BSRM Steels Ltd., 2018. Xtrong | BSRM the Best Angle Manufacturer in Bangladesh. [Online]
Available at: https://www.bsrm.com/products/xtrong/index.html
[Accessed 27 August 2018].
Dhaka Stock Exchange Ltd., 2018. Display Company Information. [Online]
Available at: https://dsebd.org/displayCompany.php?name=GPHISPAT
[Accessed 24 August 2018].
Dhaka Stock Exchange Ltd., 2018. Display Company Information. [Online]
Available at: https://dsebd.org/displayCompany.php?name=BSRMSTEEL
[Accessed 24 August 2018].
Dhaka Stock Exchhange Ltd., 2018. Display Company Information. [Online]
Available at: https://dsebd.org/displayCompany.php?name=RSRMSTEEL
[Accessed 24 August 2018].
Dhaka Tribune , 2018. Why rod prices go up in local markets | Dhaka Tribune. [Online]
Available at: https://www.dhakatribune.com/business/2018/04/03/rod-prices-go-local-markets
[Accessed 27 August 2018].
Dhaka Tribune, 2016. BSRM producing 50mm diameter reinforcing steel | Dhaka Tribune.
[Online]
Available at: https://www.dhakatribune.com/uncategorized/2016/01/11/bsrm-producing-50mm-

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diameter-reinforcing-steel
[Accessed 19 August 2018].
Investopedia, 2018. Paid-Up Capital. [Online]
Available at: https://www.investopedia.com/terms/p/paidupcapital.asp
[Accessed 27 August 2018].
Khan, S., 2018. BSRM incorporates subsidiary in HK. [Online]
Available at: http://www.today.thefinancialexpress.com.bd/print/bsrm-incorporates-subsidiary-
in-hk-1528560214
[Accessed 27 August 2018].
The Daily Star, 2016. BSRM Steels to set up fourth melting plant | The Daily Star. [Online]
Available at: https://www.thedailystar.net/business/bsrm-steels-set-fourth-melting-plant-1296652
[Accessed 19 August 2018].
The Daily Star, 2018. Rod prices still high: Real estate sector worried | The Daily Star. [Online]
Available at: https://www.thedailystar.net/star-infrastructure/rod-prices-still-high-1612810
[Accessed 26 August 2018].
The New Nation, 2016. BSRM: The largest steel industry in Bangladesh. [Online]
Available at: http://thedailynewnation.com/m/news/80593/bsrm-the-largest-steel-industry-in-
bangladesh.html
[Accessed 20 August 2018].

12.0 Bibliography
These questions which we have asked in the interview session:

1. How does BSRM implement strong culture in their management system?

2. Would you please tell us the name of some training sessions of BSRM where you had
participated?
3. Does political uncertainty have any impact on BSRM?
4. Does BSRM abide by all the foreign trade policy enforced by government of Bangladesh
and what are those?
5. Does labour policy have any impacts on BSRM as if then what are those?
6. Are your company facing any restriction in terms of trading to abroad as if any then what
are those?

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7. Are your company facing any issues regarding tax policy of Bangladesh? Does BSRM
pay tax properly?
8. Do you think BSRM depends on economic growth and as if then how?
9. Do you think your company play an important role in Bangladeshi economy as if then
how?
10. Tell me something about the interest rate of BD? Do you think it’s okay?
11. Does interest rate have any affect your customers as if then how?
12. Tell us something about the inflation rate of BD? Does it has any impact on BSRM?
13. Are your company satisfied with current disposable income? What BSRM does to
increase it?
14. How does population growth rate effect in the sales growth of BSRM?
15. Does BSRM face any cultural barriers?
16. Are your products really safe to use? As if then why? And how do you maintain the
quality?
17. Does BSRM follow latest technology? As if any then what are those?
18. Tell me something about R&D of your company? Is that innovative?
19. Does BSRM launch any new product recently?
20. Is Bangladeshi weather friendly to your company? If not then why?
21. Are your company environment Friendly? What do your company do for our
environment?
22. Does BSRM have any pressure from NGOs’? Why or why not?
23. Does BSRM have any legal issue?
24. Do your company abide by all the laws available for the staffs imposed by government?
25. What does BSRM do to protect your consumer?
26. What would be the condition of BSRM in terms of threat of new entrants? What are the
reasons behind of it?
27. What is the condition of BSRM in terms of threat of substitutes? What are the reasons
behind of it?
28. What is the condition of BSRM in terms of bargaining power of buyers? What are the
reasons behind of it?

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29. What is the condition of BSRM in terms of bargaining power of suppliers? What are the
reasons behind of it?
30. What is the condition of BSRM in terms of industrial rivalry? What are the reasons
behind of it?
31. What are the strengths of BSRM?
32. Why do you think you have achieved top position in market? How much percent do you
have among steel industry?
33. What are the competitive advantages of your company?
34. Tell us something about your distribution channel? How many outlets BSRM has? Any
dealers available?
35. Why is Strong Team Work a strength of BSRM?
36. What are the weaknesses of BSRM?
37. Why the overdraft? What does BSRM do to recover it?
38. Would you please give me some information about lack of power supply that effect your
business?
39. Why is performance of supply chain of BSRM not good? Why don’t you want to
improve it?
40. What are the opportunities of BSRM?
41. Why do you consider your top position in market as an opportunity?
42. What are the threats of BSRM?
43. Do your opponents affect your business? As if then how?
44. How economics crisis affect your company?
45. Why do you think that labour union can be a threat of your company?
46. Why do you think government policy can affect your business?
47. How does political uncertainty affect BSRM?
48. Why does BSRM worry about development of infrastructures?
49. What are the objectives of BSRM and describe those objectives in brief?
50. Would you mention bad things of BSRM?

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