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Final Term Paper Group-2

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Final Term Paper Group-2

Letter of Transmittal
January 4, 2022
Ms. Shabnin Rahman Shorna
Full-Time Lecturer
Department of Management
School of Business & Economics

Subject: Submission of Organizational Management term paper for Fall 2021

Dear ma'am,

We're submitting our Organizational Management term paper for Fall 2021 on
December 31, in accordance with your stringent deadline. We sincerely
appreciate your never-ending efforts to help us gather resounding knowledge in
this limited time frame, despite all obstacles. We've done everything we can to
live up to and exceed your expectations.

As a result, it would be pretty generous of you to accept our diligence and


grudgingly overlook any minor faults we may have committed.

Sincerely yours,

Md. Ahnaf Sadman – 2111608630


AKM. Shadaf Hossain - 2131564630
Sadman Islam Sadman - 2131189630
Sadab Mahmud Shuhan - 2131291630
Ashiqur Rahman - 2131191630

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Acknowledgement
Before we start the discussion about our paper, we would like to extend our
deepest gratitude towards a few individuals who have played inevitable roles in
completing the task since the very beginning. This whole project wouldn't have
been possible without their help, assistance, and guidance. We owe our most
profound appreciation to them.

At first, We must thank our course instructor Ms. Shabnin Rahman Shorna, for
her constant support and teachings that have supported us on our journey whole
process of getting it done. She assisted us every time we needed directions and
looked for answers that we were confused about. We, the group two members,
are very grateful for her contribution.

Similarly, we would like to show our heartiest gratitude to the commitment and
constant assistance of Manzur Ahmed, the assistant general manager of T.K.
Group of Industries helped us by giving his time, efforts, and necessary intel
regarding the project. The task is dedicated to each of those individuals who
helped us while undertaking this task.

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Table of Contents
1. Introduction ................................................................................................................................ 5

2. Mission Statement ...................................................................................................................... 6

3. Products & Brands ..................................................................................................................... 6

4. Corporate Clients ....................................................................................................................... 7

5. Achievements ............................................................................................................................ 10

6. Executive Summary ................................................................................................................. 11

7. Officers of the Company and Company Organogram .......................................................... 12

8. Organizational Structure ......................................................................................................... 13

9. Situation Analysis ..................................................................................................................... 17

10. Competitive Advantage Analysis .......................................................................................... 20

11. SWOT Analysis....................................................................................................................... 22

12. Objectives ................................................................................................................................ 24

13. Management Issues ................................................................................................................ 27

14. Conclusion ............................................................................................................................... 29

15. Appendix ................................................................................................................................. 30

16. Bibliography............................................................................................................................ 32

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1. Introduction
Mohammed Abu Tayab and Mohammad Abul Kalam, two brothers, created the T.K.
Group in 1972. They continued the trading company when their father, Mir Ahmed
Sowdagar, died away, inspired by his success. They were, however, still on the hunt for
new business prospects to better serve the nation. T.K. Group is now one of
Bangladesh's largest corporations. T.K Group is a Bangladeshi company that specializes
in vegetable oil. Steel, shipbuilding, pulp & paper, plastics, cement, and textiles are
among its other businesses. Chittagong is the headquarters of the conglomerate. This is
one of the country's largest VAT payers.

We were taught many approaches and principles of managing an organization as


a student of the MGT-212 course. Our respected course instructor assigned this
assignment to study such procedures and concepts on a real-world basis. We were given
the task of researching a company organization's management activities, internal and
external environment, market circumstances, rivals, etc.

For our investigation, we choose to focus on TK Group, one of Bangladesh's major


corporations. We have presented the findings of our study on TK Group's many
management activities (such as how the manufacturing process is handled and how
employees are recruited, the reasons of their success and failure, and so on) as well as
several environmental challenges in this report (Internal & External). We also
conducted a SWOT analysis of the company's internal and external environments to
determine its strengths, weaknesses, opportunities, and threats. The research also
includes a five-forces analysis to demonstrate the present market situation of TK Group
in comparison to its competitors.

We have to conduct an interview with Assistant General Manager (AGM) Mr. Manzur
Ahmed in order to accomplish our research. For more information, we used the internet
and our text book. We had to confront certain limits in order to avoid the leaking of
critical information about the company since it is a successful enterprise.

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2. Mission Statement
The mission of T. K. Group of Industries is to "create value while making a
difference." The goal of them is to be the best in all of their businesses by focusing
on their 5Ps: people, portfolio, partnerships, profit, and productivity. To keep on
track toward their goal, they adhere to their fundamental beliefs at T. K. Group
of Industries. they believe in the following:
➢ Every action should be transparent
➢ Adaptability to new situations
➢ Creating a conducive atmosphere
➢ Strive to be the best
Their ability to adapt and empower their staff ensures excellence in our activities,
while transparency keeps their conscience intact.

3. Products & Brands

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4. Corporate Clients
Govt. Organizations:

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4.1: Private / Multinational Organizations:

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5. Achievements
Bangladesh's First Superbrands Award-Winning Particle Board Brand:
Super Board Mills Ltd. provides the right product for all of your decorating,
furnishing, packaging, and manufacturing requirements. SBML has been
producing high-quality board and plywood since its inception in 1995.

IAB Build Expo 2019: Arcasia Best Pavillion Award (Super Board):
Super Board Mills Ltd. provides the right product for all of your decorating,
furnishing, packaging, and manufacturing requirements. SBML has been
producing high-quality board and plywood since its inception in 1995.

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6. Executive Summary
The T.K. Group is the subject of this study. It is one of Bangladesh's most important
industries. Commodity trading was where the industry started in 1972. The founders'
entrepreneurial drive aided the company's growth, and new projects in consumer and
industrial product manufacture and marketing were started. With core competencies in
edible oils and fats and successful diversification into other industry areas, the group
has developed as one of Bangladesh's top industrial groups over the years. They're well-
known for their vegetable oil production. Steel, shipbuilding, pulp and paper, plastics,
cement, tea plantations, packaging, and textiles are among their other passions.
Chittagong is the headquarters of the conglomerate. For decades, it has held the hearts
of the people of Bangladesh. Since its inception, this industry has received numerous
national and international accolades. They have received many awards for their
contributions to the country's export and import markets, including "Standard Chartered
Trade Awards" and "Best Brand Award."

When it comes to financial stability, T.K. Group is undoubtedly in a strong position.


During the covid-19 crisis from 2020 to 2021, many businesses were shutting down due
to not generating profit; T.K. Group, on the other hand, did quite well at that time since
the managing director of T.K. Group, MD. Along with all the managerial and non-
managerial employees, Abdul Kalam gave their all into it. In the 2021 fiscal year, the
total asset of T.K. Group was worth 794,52,94,390/- whereas the total equity and
liability were 240,12,94,180/- and 554,40,00,210/- respectively.

"Creating value while making a difference" is their mission. Their goal is to be the best
in all they do by focusing on the 5ps: people, portfolio, partners, profits, and
productivity. They are committed to conducting business in a distinctive and effective
manner in order to serve consumers and customers. By doing so, they hope to become
a dominant player in the business areas in which they operate. They think that effective
business growth necessitates a comprehensive commitment to excellence in
performance and productivity in order to build long-term value.

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7. Officers of the Company and Company


Organogram

Chairman Managing Director Group Director


Mrs. Laila Bilkis Md. Abul Kalam Md. Mustafa Haider
Salary: 6,00,000 Salary: 6,00,000 Salary: 6,00,000

Director Director Director


(Operations and Marketing)
Hasnat Md Abu Obida (Production and Technical)

Salary: 5,50,000 Md. Tariq Ahmed Md. Khurshidul Alam


Salary: 3,95,000 Salary: 3,90,000

N.B: The amounts of salaries are based on conjecture.

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8. Organizational Structure

The formal arrangement of roles inside an organization is known as


organizational structure. The term "organizing" refers to constructing and
designing a corporate structure.
8.1: Work specialization: Work activities are divided into various job
tasks.

8.2: Departmentalization: Departmentalization is how jobs are grouped


together is called departmentalization. Five common forms of it are used,
although an organization may develop its own unique classification.

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8.2.1: Functional Departmentalization: Jobs are divided into


groups based on their functions.

8.2.2: Geographical Departmentalization: Jobs are categorized


based on where they are located or geographic region.

8.2.3: Process Departmentalization: Jobs are categorized by


product line.

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8.2.4: Product Departmentalization: Jobs are categorized by


product or customer flow.

8.2.5: Customer Departmentalization: Jobs are organized into


groups based on the needs of specific and unique customers.

8.3: Chain of Command: The chain of command that runs from the top
of the organization to the bottom, indicating who reports to whom.

8.4: Span of control: The maximum number of workers that a manager


can manage efficiently and successfully.

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8.5: Centralization: The extent to which the organization's decision-


making is concentrated at the top level.

8.6: Decentralization: The extent to which lower-level employees


contribute ideas or influence choices.

TK Group assumes these six fundamental characteristics of organizational


structure.

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9. Situation Analysis
Situation analysis is the process of assessing the internal and external variables
that impact an organization before embarking on a new initiative or project. It
equips you with the expertise to recognize your organization’s, service’s, or
product's existing opportunities and difficulties. As a result, it's easier to develop
a plan to go from where you are now to where you want to be.
The situation analysis of TK group is given below:
9.1: Internal Factors:
TK Group has developed strong cultural principles that have a significant impact
on staff behavior and activities. Their core beliefs and values are deeply held and
widely shared. They share a strong bond in terms of shared values and behaviors.
They inspire and motivate their employees in a variety of ways:
9.1.1: Value of Employees: Although the TK Group is a hierarchical company,
every employee can offer their ideas. Each employee is valued and rewarded
based on the circumstances. Every employee maintains a strict work ethic. They
are hard-working. They are very dependable and responsible. This sort of
behavior makes them one of the best companies in Bangladesh. They are very
positive and adaptive to any situation. They are self-motivated and full of self-
confidence. Professionalism and loyalty are their main attribute of them.
9.1.2: Financial: In order to exist and expand effectively, a company must have
sufficient finances. The financial condition of TK Group is really good and
developing more day by day. Their financial growth is extra-ordinary. They have
numerous segments in their business. All segments are more or less profitable.
Their edible items are very prominent in our country. Their mostly home
production helps them to minimize the production cost which allows them to
profit more.

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9.1.3: Management: From the beginning of the company's journey, the T.K.
group's management has worked incredibly successfully and efficiently. M.D.
Abul Kalam, the current managing director of the T.K. group, takes recruiting
qualified managers very seriously. T.K. Group now employs over 50,000 people
and continues to grow year after year. Managers face various problems as they
carry out their duties as leaders. When managers relocate to another location, they
may find it challenging to adapt to local traditions, dialects, and other issues.
Employees who work under or with them may find it difficult to accept them as
a peer.
9.1.4: Employee and Strategy Risk: Because of its excellent market position,
this company's risk of losing employees is pretty limited. No workers have ever
been caught hitting or causing violence because of any disagreement. A danger
to their strategy is low promotion, fixed pricing, and a lack of product mix
expansion. The danger is increased, but it is not yet in a downward trend.
9.1.5: Transparency: TK Group always maintains transparency within the
organization. They share goals, missions, and plans with everyone. They share
their values. They ask for ideas from the employees and appreciate them. They
ensure equal treatment for all employees in their organization.
9.1.6: Performance Recognition and Motivation: All employees get proper
recognition for their performance in a certain period. They highly try to appreciate
their employees for their brilliant work. They appreciate them in front of
everyone. This feeling of appreciation strongly motivates their people.
These are some of their internal factors that create impact on their activities.

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9.2: External Factors:


External factors and forces influence the performance of the TK Group. The
external environment has a variety of components that managers must be aware
of to formulate a strategic plan for the company. These factors include:
9.2.1: Economic Environment: The economic environment has a substantial
impact on every business. Inflation rates, interest rates, GDP, currency exchange
rates, unemployment rates, and disposable income are all part of the economic
character and section. TK Group is one of the highest taxpayers in our country.
They are creating employment opportunities for the unemployed people of our
country. They also export their product which is causing our economic growth.
They have many investments in our country.
9.2.2: Demographic: Demographically TK group has a strong position in our
country. Their products are highly famous across the country. They have a robust
supply chain across the country. Their products are available in the 64 districts of
our country.
9.2.3: Technological Environment: Businesses are being forced to reconsider
the business technology to contact consumers, make goods, and offer services on
a near-daily basis. We refer to digital technologies like computers, telephones,
and the Internet when discussing business technology. Technologically they are
a bit behind. They do not have any solid promotional activities. This lacking is
stopping them from reaching some potential customers. However, their
production equipment is updated, allowing them to secure their position in the
market.
9.2.4: Political and Legal Environment: The legal environment is such an
environment in which a company operates, is the most complicated and possibly
harmful external aspect it must deal with. Companies must navigate a maze of
rules, laws, and obligations to continue in business. Government plays important

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role for every business. TK group don’t face that much difficulties to operate their
business for this environment.
9.2.5: Competitive Environment: With the development of new technology, the
opening up of international markets, and the growth of consumer expectations,
the competitive environment has become more intense. As one of the successful
companies in Bangladesh, they have many competitions. They have stiff
competition in the country. Many companies offer the same product, but their
quality makes them unique from them.
9.2.6: Global Environment: Being one of the largest companies in Bangladesh
TK Group often contribute to the global environment. They export their product
in various countries and capturing the market in the global sector.

These are some of their external factors that create impact on their activities.

10. Competitive Advantage Analysis


The competitive analysis of a company is determined using the five forces model.
This methodology determines a company's attractiveness and profitability. The
five forces model may be used to analyze a company's current competitive
position and strengths.
10.1: Threat of New Entrants:
The strength of new entrants into a market impacts a company's strength.
The less time and money it takes a competitor to enter a market and become
a credible competitor, the more insecure the position of an established
company becomes.TK Group has this kind of risk because they have many
segments in their business, so there is a high chance of creating a new
business in any exciting industry.

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10.2: Threat of substitutes:


Substitute goods or services that may be utilized instead of a company's
products or services are dangerous. Companies that manufacture products
or services with no near alternatives will have greater freedom to achieve
favorable circumstances and boost pricing Customers will be able to avoid
buying a company's products if it is located near them. Substitutes are
accessible, eroding the company's influence. TK Group has many
substitutes in the market already. In some segments, the substitutes offer a
better deal to the customers. So, they have to improve some of their
segments.
10.3: Bargaining Power of Buyers:
Consumer power or the ability of consumers to bring down prices is known
as the Bargaining power of buyers. The number of buyers or customers a
business has, the value of each client, and the cost of seeking new
customers or markets for the company's goods all impact it. This force can
affect TK Group's business because they have some excellent substitutes
for customers to choose from, allowing them to bargain.
10.4: Bargaining Power of Suppliers:
This part of the five forces model addresses how suppliers might quickly
boost input costs. It is impacted by the number of suppliers of a product's
or company's key inputs, the uniqueness of these inputs, and the cost of
switching to a different source. This force will not affect TK Group's
business because they mostly use their materials, so suppliers will not
affect their business.
10.5: Current Rivalry:
This portion of the five forces model addresses the intensity of competition
among present industry rivals. However, Tk Group does not have highly
intense competition right now. However, their competition is increasing
day by day.

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11. SWOT Analysis

Strength Weakness

SWOT

Opportunity Threats

It's used to set up a company's structure. The key advantages of a company are
its strengths. Weakness permits them to determine what aspects of their
business they should improve. Opportunities help them in deciding their
competitive advantages. Finally, threats help them in identifying their obstacles.
Internal factors include strengths and weaknesses, and external factors include
weaknesses and opportunities. Macroeconomics could be one of the external
factors.
Strength:
➢ The company's top management is its most important asset. They made
significant contributions to the development of their products and the
maintenance of their value.
➢ They have a large number of factories throughout the country.
➢ T.K. Group's most well-known brand, PUSTI, has edible oil, atta, wheat,
Tea, rice, water, lentil, and Suzi. Health, hygiene, and excellence are all
associated with the brand.
➢ Lower-level management is motivated by senior management, which
incentivizes them to work harder.
➢ They have all products like oil, Tea, ghee, flour, mineral water, steel,
cotton, board, and paper.
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➢ They have a well-organized management team.


Weakness:
➢ They don’t have enough marketing skills to promote their products.
➢ They don't have any professionals on staff.
➢ They don't allow for a healthy work-life balance. Employees are unable to
find adequate spare time.
➢ A lack of coordination.
➢ Because of the fixed pricing, they cannot reach the lower and lower-middle
classes.
Opportunities:
➢ Attracting foreign customers.
➢ They are establishing a solid position in the country by ensuring high-
quality products and sanitary conditions.
➢ Exporting their products to the whole world.
➢ They are lowering unemployment in our country by providing jobs.
➢ They are creating opportunities for both labor and the youth.
Threats:
➢ They are primarily Agro-based companies, so they must concentrate on
product preservation.
➢ Their competitor ‘Supreme Group’ provides the best cement worldwide.
➢ Because of their limited marketing promotion, they are unable to reach
their targeted customers as effectively as their competitors
TK Group's SWOT analysis shows that it still has a solid position in the market,
but it can improve its position by focusing on its weaknesses, opportunities and
threats.

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12. Objectives
Objective means goals, desired outcomes, or targets. Every business objective
should be intelligent, specific, measurable, achievable, timed, and relevant. And
the strategy is the plan of action to achieve that objective. So, objective and design
are closely related to each other.

Every business has its own set of aims and objectives that it hopes to reach in the
future by delivering exceptional results. When a corporation begins its journey, it
establishes a goal that it wishes to achieve. It is an essential requirement for any
organization. In a competitive market, no firm or company can survive without
having a competitive advantage.
There are two kinds of goals. One is the stated goal, while the other is the actual
goal. Official assertions of what an organization says and what it wants its
stakeholders to believe about its aims are stated goals. And real goals are
something that an organization pursues.

T.K Group of Industries has its objectives and strategies. Their stated goal is to
put more budget into the advertising sector. Their real goal is to provide
affordable, environmentally friendly products. Their other real goal is to earn a
healthy profit for their shareholders and significantly impact the country's
development.

T.K Group of Industries has divided its objectives into four categories. They are:
Financial Objectives.
Customer Objectives.
Internal Objectives.
Learning and Growth Objectives.

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12.1: Financial Objectives:


This objective is related to the financial performance of the organization.
Increased revenue is the top priority of every industry, especially industries like
the T.K Group. They follow many strategies to achieve this objective, such as
ensuring financial stability, profitability, etc. T.K Group also follows
diversification and grows revenue streams. They make money from various
sources, such as producing more products and services. They set a goal to increase
revenue in multiple sectors to secure the organization's stability and avoid the risk
of relying on a single revenue stream. They are also trying to reduce the cost or
expenses of their industries. These steps will help them to grow bigger.

12.2: Customer Objectives:


A customer is a person who buys goods or services from the company. Customers
are crucial because they are the source of money. Without them, businesses would
cease to exist. To get many customers, T.K Group satisfies the customers in many
ways. Their customers know or are aware that they are not buying the most
expensive product or service or even at the best quality but rather the best value.
This could indicate that their customers are paying less than average for an
average or above-average product. Investing in customer management is another
crucial role. They produce reliable products for their customers so that their
customers can rely on them quickly. They also give offers to their customers who
give them easy solutions on conflict matters. Their products are the best value for
the cost.

12.3: Internal Objectives:


Internal perspectives are usually focused on your company's procedures to excel
in. T.K Group invests a certain amount of money in innovation. They are
improving and focusing on research and development. They also acquire new

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customers from innovative offerings. Reduce error rates also fall on internal
objectives.
12.4: Learning and Growth Objectives:
Learning and Growth Objectives focus on skills, cultures, and organizational
capacity. T.K Group focuses on how to improve their technical and analytical
skills. Technical issues like increasing computers and technological innovations.
They are creating a performance-focused culture. They enhance productivity with
cross-functional teams. They invest in tools to make their stuff more productive.
They are hiring, attracting, and retaining the best talent across the whole country.

From the above objectives, we can clearly say that Tk Group is on a mission to
become the market leader. They strive to enhance the wealth of the stockholders
as a top priority. Even if they are a profit-driven corporation, they seek to earn
customer pleasure by providing distinctive products at a low cost and delivering
them on time.

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13. Management Issues


Managers face challenges and obstacles while overseeing a team of employees,
and attempting to reach goals can be referred to as management issues. Every
organization faces some management issues. The working environment of the
T.K. group is employee-friendly. Every employee at different hierarchical levels
works cohesively with other employees. This mindset of the T.K. group indicates
that it has a strong organizational culture, but it has some drawbacks as well, just
like any other company.

13.1: Management Skills: The managers of the T.K. group have been working
very effectively and efficiently since the beginning of its journey. The current
managing director of T.K. Group, MD. Abul Kalam is pretty serious when it
comes to choosing compatible managers. The managers are well trained and have
enough experience to manage their span of control.

13.2: Interpersonal Challenges: In most cases, interpersonal conflict cases


among employees and managers are scarce. Approximately 50,000 employees
are working at T.K. Group and the number is increasing every year, so it’s evident
that all the managers and employees are not locals. When a/an manager/employee
is from a different district, they often face difficulties adopting local trends,
dialects, etc. Employees working under/alongside them might find it slightly
difficult to start thinking of them as one of their own.

13.3: Social Media Management: Social media nowadays play a vital role in
each company since people of all ages now tend to spend a good amount of their
time on these but T.K. Group’s performance in this segment is not that
satisfactory. To grab the bigger potential customer group, the managers could
take the required initiatives to improve their social media management skills.

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13.4: Other Challenges: On managerial work, T.K. group managers have many
challenges. Their first challenge is controlling their employees. Second, they have
lots of competitors in the market who are also doing quite well. Lastly, even their
best-selling products have many substitutes in the market, which might be big
trouble for them.

13.5: CSR Activities: when it comes to participation in CSR activities, T.K.


Group is doing pretty good. For instance: T.K. Foundation has built 20 brick
houses and 50 hygienic sanitation systems every year for those in need and
provides free education through a primary school in Chittagong. Apart from
these, the founding members of the T.K. group are the founders of the Chittagong
Kidney Foundation as well.

Recommendations:
• Showing more ads through television and radio.
• Start being more active on social media for better reach.
• There are so many untapped markets so that it can be a huge opportunity.
• Set up offices in the other major cities of Bangladesh
• Build trust among employees and managers by being better
communicators.
• Build their own E-commerce site where customers can get their products
online.
• They should take the opportunity to sponsor any event or sports team to
increase their popularity.

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14. Conclusion
The T.K. Group of Industries was founded in 1972, and the founders'
entrepreneurial spirit aided the company's growth and the introduction of new
enterprises in the manufacturing and marketing consumer and industrial products.
As its offerings are best suited to its target clients, its commercial operations are
expanding day by day. The sales force is capable of successfully operating the
system. T-K has a strong network of distributors who are steadily improving and
becoming more competitive. T.K. follows a cell-by-cell method. The distribution
system has some fundamental and operational issues. As far as product promotion
is concerned, to cope with changing market needs, the company should maintain
sufficient flexibility in combining the parts of its management with those of its
market needs. A pragmatic approach in this area necessitates a constant and
regular assessment of the millennium's evolving technological and
socioeconomic conditions.

If it competes with other companies, T.K. must focus on marketing distribution


channels, price margins, and marketing skills to advertise its products and reach
its target customers.

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15. Appendix

Picture of Visiting Card

Manzur Ahmed

FACTORY
Head Office

FACTORY FACTORY

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Question We Asked:

• What is the increasing rate of the profit of your company?


• Which sector is more profitable in your company?
• What do you think you should change regarding your company’s
management?
• What kind of steps do you take to motivate your employees?
• What initiatives did you take during the pandemic?
• What is the prime reason behind it’s success?
• Is your company planning on expanding the business?
• Can we have the annual report ok T.K. Group of Industries? {Being
a private limited company and having some company restriction
policies, they don’t allow any third party to have access to their
annual report, but they gave us a vague idea about the profit they
generate each year which amounts to 95 million (approximately)}
• What is the primary source behind your strengths?
• What are some of the drawbacks your company has faced over the
past few years?
• Is there any company(es) that you consider your biggest rival? If no,
then why? If yes, how will your company overcome the potential
threats?
• Do you have any plans to improve your social media engagement?
• Are you going to make your company go international in the future?
• Will you ever make your company go public?

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16. Bibliography
❖ Robbins, S. P., & Coulter, M. A. (2020). Management Global Edition
Pearson. ISBN 9780132655040 (14th ed.).
❖ https://tkgroupbd.com/
❖ https://www.thedailystar.net/business/news/tk-group-invest-tk-1744cr-
bangabandhu-shilpa-nagar-1969213
❖ https://tkgroupbd.com/about-tk-group/
❖ https://tkgroupbd.com/acheivements/
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32 | P a g e Please Turn Over

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