ASSIGNMENT

COURSE: MGT 201

SECTION: 10

SEMESTER: SPRING 2023

NAME OF INSTRUCTOR: Tarannum Azim

DATE OF SUBMISSION: 30/04/23

TEAM MEMBERS:

Tafrid Ali Khan 2111201

Abdullah Al-Mamun 2220203

Arnisha Rahaman 2220174

Mohsina Yesmin Mily 2220967

Mohaiminul Haque Ruhan 2110648

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 Table of Contents

Research Method.......................................................................................................................... 3
Executive Summary.......................................................................................................................4
Company Overview....................................................................................................................... 5
PESTLE Analysis...........................................................................................................................6
SWOT Analysis of Walton:............................................................................................................ 8
Stakeholder of Walton :............................................................................................................... 10
Milestones of Walton Group.........................................................................................................11
Findings....................................................................................................................................... 12
Conclusion................................................................................................................................... 13
Reference.................................................................................................................................... 14

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Research Method

The research conducted in this study involves the usage of various sources of information from
websites, journals, and announcements made by the Walton Group. The purpose of the
research was to gather relevant data and information about the external factors, services and
operations, as well as its financial performance and market position. The primary data sources
used in this research includes the official website of the Walton Group, which provided
information about the company's history, mission and values, as well as its product portfolio and
news updates. In addition, the company's financial reports and investor presentations have
been analyzed to gain insights into its financial performance and growth prospects. The
secondary data sources used in this study included academic journals, industry reports and
news articles related to the electronic industry in Bangladesh, where the Walton Group
operates. These sources provided a broader context for understanding the company's market
position, competitive landscape, and regulatory environment.
The data collected from these sources were analyzed using various techniques, including
content analysis, descriptive statistics, and comparative analysis. The findings of the study are
being presented in a comprehensive report, which includes an overview of the company,
external factors, achievements and its strengths and weaknesses. Overall, the research method
used in this study was a combination of qualitative and quantitative approaches, which involved
the use of both primary and secondary data sources. This method allowed for a comprehensive
and in-depth analysis of the Walton Group's operations and performance, providing valuable
insights for investors, analysts, and other stakeholders.

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Executive Summary

Founded in 1977, Walton has grown to become one of the largest electronics manufacturers in
the country. The company is a pioneer in the Bangladeshi electric device manufacturing sector,
with the slogan "Made in Bangladesh." They are now Bangladesh's first multinational
manufacturing business, having started in 2006. Walton Bangladesh Group is a conglomerate
that operates in various sectors of electronics, with a wide range of products including
televisions, refrigerators, air conditioners and mobile phones. They have overcome all obstacles
and are now representing Bangladesh with their high quality products all over the globe. They
have captured the local market with their electronic goods and are now manufacturing two
wheeler vehicles. Since manufacturing is conducted within the country they are able to provide
lower prices with minimal compromisation on quality. Walton has been able to acquire a large
share of the market, they have created a distinct brand image by branding Bangladesh. They
have established a nationwide marketing and support network and are now expanding to global
markets rapidly.

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Company Overview

Since 1977, WHIPLC has been manufacturing refrigerators, freezers, air conditioners,
compressors, and is presently expanding its operations into televisions, home appliances and
electrical appliances. Walton & Marcel has become the most trusted and prestigious brand in
Bangladesh's E&E business because of its robust production base, high-quality goods,
competitive pricing, vast market penetration and not least, rapid after-sales services. As a result,
in a relatively short amount of time both brands have acquired significant market share and
positioned themselves as the most dominant performer in Bangladesh's E&E sector. WHIPLC's
product portfolio comprises refrigerators (both frost and non-frost), freezers, air conditioners,
compressors and televisions.

With one of the largest and best-equipped R&I facilities in the world, Walton is a modern
international brand that produces appliances, electronics, two wheelers and other electrical
goods through a number of subsidiaries that operate under the Walton group headquarters in
Bangladesh. Walton currently employs more than 30,000 people across 22 production bases
spread across 700+ acres of plant space. Based on market demands, the annual production
capacity is 10 million units. Walton is the largest professional producer in the business and has
built an excellent track record for creating electrical and electronics products in the most
competitive manner possible in terms of quality, price, design and innovation.
Walton is a pioneer in producing cutting-edge designs and cutting-edge technologies, with a
leading market share in Multi-Storey Refrigerators, Freezers, Air Conditioners, LED/LCD
televisions, Motorcycles, Smart Phones, and Home Appliances. Walton is trying to expand its
global market presence from 40 to more than 200 countries in order to dominate Go Global and
be one of the top five Electronics Brands in the world by 2030.

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PESTLE Analysis

Walton, a Bangladeshi electronics and appliances brand, operates in a unique business

environment that is shaped by various factors. To understand how these factors affect Walton's
operations in Bangladesh, we can use a PESTLE analysis, which examines the Political,
Economic, Social, Technological, Legal and Environmental factors that impact a company.

Political: The political environment in Bangladesh is characterized by a history of political

instability and frequent changes in government. This instability can impact Walton's operations,
as changes in government policies and regulations can impact the company's operations.
Although the relationship between the current Bangladesh government and Walton has been
great. As Walton is greatly contributing to the country's economic development, progress and
growth Land minister Saifuzzaman Chowdhury addressed Walton as a national asset.

Economic: Bangladesh's economy is characterized by rapid economic growth and a sizable

population. Walton faces both opportunities and challenges as a result of this; although it can
profit from the expanding consumer market, it also faces competition from other businesses for
clients.

Social: A vast population and a quickly expanding economy define Bangladesh's economic
climate. Due to the expanding consumer market and the need to compete with other businesses
for clients, Walton has both opportunities and challenges as a result.

Technological: Bangladesh's technical landscape is quickly changing, and Walton has had to
adjust to stay competitive. For instance, to increase customer experience and optimize
manufacturing processes, the corporation has made significant investments in technologies like
AI and automation. The Walton brand's most popular items are freezers and refrigerators.
Walton controls 66% of Bangladesh's refrigerator market. To supply Bangladesh's needs,
Walton shipped refrigerators to a number of nations. When it comes to offering high-quality air
conditioners at competitive pricing, Walton is the market leader in the nation. Twin-fold inverters,
fixed speed ionizers, and comprehensive energy-saving IoT-based smart inverters are all
features of Walton's air conditioners. Modern smart LED televisions are produced and exported
by Walton. Bangladesh's TV market is led by Walton. It has been selling televisions built in its
own plant to various nations since 2010. More than 35 nations throughout the world are
currently receiving Walton TV exports. The sole manufacturer of compressors in Bangladesh is
Walton. The Walton Compressor Factory has a production capacity of around 4 million units
annually. Walton mobile is one of the best selling products. Walton Hi-Tech Industries produces

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Walton Motorcycles. one of the motorcycles with the highest sales in Bangladesh. The
manufacturing of them makes use of Japanese technology.

Legal: Walton is required to abide by a number of rules and laws due to the complexity of
Bangladesh's legal system. To safeguard its goods and brand, for instance, the business must
abide by labor rules and regulations as well as intellectual property laws.

Environmental: Walton in Bangladesh is impacted by environmental variables including climate

change and sustainability. The business has taken steps to lessen its impact on the
environment, such as by investing in renewable energy and cutting waste in its production
operations. Generally speaking, Walton conducts business in Bangladesh in a dynamic
environment that is influenced by a variety of political, economic, social, technological, legal,
and environmental issues. Walton can continue to compete and expand its company in
Bangladesh by keeping an eye on these issues and changing as necessary.

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SWOT Analysis of Walton:

Swot Analysis is a strategic planning and strategic management technique that is used to guide
a person or organization in determining its Strength, Weakness,Opportunities, and Threats in
relation to business competition or project planning.

Strength :

● Wider Product range:Walton provides a wider variety of products, including smart

phones,air conditioning, refrigerators,television, home appliances etc.that are demanded
by the market.
● Low price:Considering the budget of middle class people, Walton provides its products at
a lower price by keeping the cost of production low. It also offers high-quality goods at
affordable prices.
● Large distribution channel :They have large distribution channels with 150 Walton
Plazas, which are their authorized showrooms across the country. Along with that, they
have 450 Walton's exclusive.
● Superior Brand Image : Since the beginning, it has been satisfying to its users. Walton
also has a superior brand image in the market. Walton has countrywide retail sales
outlets and service outlets all across the country. Walton has obtained ISO 9001:2008
International Standardization certification. It was presented in recognition of its excellent
management practices. Walton offers a wide range of handsets with multiple operating
systems.

Weaknesses:

● Lack of skilled manpower : The employees in this company are not as skilled as those in
larger companies. As a result, some people do not select their product to use.
● Proper Monitoring Problem Facing In Market Activities :The lack of skilled manpower in
the marketing sector is very visible. Because Of this,Walton is unable to effectively
monitor the market's position.
● Shortage Of accessories : The fact that the accessories used in the new device are
different to collect is another weakness of Walton's products.
● Customer Service : Consumers face problems when they want to get their handsets
fixed.There are few customer service centers available in the whole country that's why
they do not have the power to access people in time.

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 ● Unable To Capture The high-income group:The high-income group still prefers to use
foreign-brand products. This is mainly because the quality of Walton in not trusted by
them

Opportunity :

● Achievement Of Sales Growth Through Introduction Of New Products : Walton can

increase sales growth by introducing new products at lower costs then other companies.
● Employment Opportunities : Hiring skilled workers doesn’t cost a lot of money for the
business. Therefore,there is a great opportunity for expansion.
● After Sales Service : People in Bangladesh will accept Walton products more readily if
excellent products and after-sale service are maintained. Due to its dense population.
Bangladesh has a very high demand for smartphones and many other products of
Walton.
● Government Support : Another opportunity for the company is that they get government
support as they are the only exporter of electronic products in Bangladesh. Moreover,
They can easily get loans from banks with government support.

Threats :

● Unethical Competition Prevailing In The Market : Unethical competition prevailing in the

market foreign brands dominate market share as do LG-Butterfly and Sony-Range,
which are also planning to start their own manufacturing in the country, posing a threat to
the company.
● Public Demand : Markets are dynamic and people's preferences are changing day by
day. If they do not meet the public demand, they may fail to maintain public satisfaction
in the future.
● Competition Innovation : Innovation and the introduction of new products by competition
can also pose a threat to the company.

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Stakeholder of Walton :

A stakeholder is an individual or group that has an interest in a business or organization. They

can either be internal or external. We have identified some of the stakeholders in Walton.

List of Walton's stakeholders :

1. Customers
2. Employees
3. Business partner
4. Communities
5. Shareholders
6. Investors

Identifying Critical stakeholders :

Stakeholders are not created equal.Choosing who stands to gain or lose the most from a
particular policy or plan is frequently included in the Process of identifying crucial stakeholders.
Critical stakeholders are frequently very interested in the expansion of an organisation.A
company performance may suffer, if its stakeholders are not satisfied. By reviewing the Walton
stakeholders list,we identify three critical stakeholders.

1. Clients and customers

2. Employees
3. Investors

Critical stakeholders of Walton

1. Clients and customers : For a business, the tem "customer satisfaction " is important. In this
scenario, Walton will suffer if they are unable to satisfy their clients and customers, which will
eventually impact the company as a whole. For this reason, we can say clients and customers
are critical stakeholders of Walton.

2. Employees : Employees are critical stakeholders because they actively contribute to the
growth of the company. employee turnover will increase if Walton fails to meet their needs,which
will eventually have a negative impact on the company. Therefore, we might say that Walton
employees are critical stakeholders.

3. Investor : Investors play a crucial role in organizations and actively contribute to their
development. If investors are not impressed and there is no possibility for future growth, Walton
will suffer. Because of this, investors are an important shareholder in Walton.

10
Milestones of Walton Group

Walton is a multinational company with operations in several industries with headquarters in

Bangladesh. Here are a few of Walton's accomplishments from the last five years:

Revenue increase: According to sources, Walton's revenue has grown consistently over the last
five years, on average at a 20% annual growth rate. Walton Hi-Tech Industries PLC has
achieved a new milestone in the sales of its elevators, fans, LED lights, switch-sockets and
other electrical appliances. They have sold out electrical appliances worth Tk 1.27 billion in
March this year under its three brands - Walton, Marcel and Safe. Moreover, Walton has
registered 52 per cent sales growth on electrical appliances in 2020-21 fiscal year.

Manufacturing facility expansion: To increase its production capacity for electronics and other
products, Walton has been increasing its manufacturing facilities in Bangladesh located at
Chandra, Kaliakoir, Gazipur. The plant is treated as one of the sophisticated manufacturing
plants in Bangladesh as well as in South Asia. Walton innovates to build a more advanced,
sustainable and environment friendly society through the combination of sophisticated
technologies and expertise. The manufacturing plant of WHIPLC is approx. 5,000,000 sft. of
working space consisting of 19 Buildings and Shades.

New product introductions: Over the past five years, Walton has added a number of new items
to its lineup, including laptops, cellphones, and home appliances. On the occasion of Eid-ul-Fitr,
they also unveiled three new premium models of ceiling fans with attractive designs under the
Walton, Marcel, and Safe brands. These new models include Walton’s Gloria ceiling fan,
Marcel's Rose fan, and Safe Brand’s belly fan. Walton’s average production capacity of
smartphone and feature phone reached around 800,000 and 2,000,000 units respectively. In the
beginning, Walton’s phone gained a lot of popularity as the company was providing phones of
relatively higher specification and exclusive design at reasonable prices.

Increased market share: Both nationally and globally, Walton has been able to grow its market
share across a number of sectors, including the electronics and automotive sectors. Walton
Television Export began in Germany in the country of Europe. This created a new horizon in the
country's television production industry. This will make the Walton Made in Bangladesh tag
marketing expansion program in Europe much easier. The foreign exchange reserves will rise.
The image of Bangladesh will be bright in developed countries. It is known that almost all

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machines of the Walton factory were manufactured in Germany. Walton products are the best
quality in the world. Therefore, the German buyers are more interested in Walton products.

Research and development investment: Walton has made large research and development
investments, enabling the company to create novel goods and maintain a competitive edge. The
company plans to set up a second unit of Walton Hi-Tech Industries with the aim of starting
commercial production within the next two years. According to the MD of Walton Hi-Tech
Industries, the second unit of Walton Hi-Tech Industries will create 15,000 jobs for people.
Walton is planning a wide range of brand expansion worldwide by spreading electronics and
tech products made in Bangladesh all over the world. As a result, the company invested
500,000 USD in establishing Walton Corporation in the United States. Walton plans to establish
branches in India, Nepal, the United Arab Emirates, and South Korea. The company is also
going to launch its own ecommerce Walcart soon. Even though they have an online store called
Walton Plaza, Walcart will be a full-fledged eCommerce site. Furthermore, the company is
conducting research & development with electric vehicles, and Walton may be seen in this
market in the future.

Financial performance: The company was also able to generate strong sales for other products,
which increased the company’s profit to BDT 1376 crore in FY 2018-19. Walton’s factory
currently produces 3,500,000 units of refrigerators and freezers per year. In 2019, Walton made
an agreement with Hyundai Electronics, where Walton will supply 100,000 units of refrigerators
and 20,000 residential air-conditioners.

Findings

Walton's invention has always been dedicated to the betterment of society and country from its
inception, and continuing to do so. The cutting-edge, experimental-technology-based company
is paving the way for local competitors. The product design reflects modern lifestyle blended
with local antiquities. The capacity to constantly fulfill consumer satisfaction with creative
products while looking ahead has never been simple for any company, but their continuous
growth is helping them accomplish their vision of being Bangladesh leading Tech brands and
securing position on the global market. Walton was not well recognized to clients only a few
years ago due to a lack of effective promoting effort, but the promotional campaign is now highly
decorative. The departments are gradually merged, and the manpower is constantly
supplemented. Their expansion to European nations is worth noting since 2020. Customer
service and after-sales service are among the best among local competition. Walton's customer
care system was enhanced by more than 57 cutting-edge after-sales service sites and
ISO-certified central service stations. Over 21000 direct and indirect staff are working tirelessly
to propel the firm to the pinnacle of success. Walton is also a synonym for integrity, loyalty,
probity, and honesty. One of Bangladesh's biggest taxpayers. They have maintained compliance
for decades. Received multiple honors for reducing production costs and maintaining an
environmentally friendly atmosphere.

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Conclusion

Based on the research conducted on Walton Group, it can be concluded that the management
practices of the company have played a significant role in its success. The company has
adopted a decentralized management approach that has enabled it to expand rapidly while
maintaining a strong focus on customer satisfaction. Their focus on employee development,
and a commitment to corporate social responsibility, has enabled them to build a strong and
sustainable business that is well-positioned for future growth. Their dedicated workforce is
capable of meeting the evolving needs of their customers. Walton’s vision of international
recognition is both beneficial for Bangladesh and local competitors. Foreign investors are
showing interest such as LG, Whirlpool wants to invest in Bangladesh’s booming Tech industry
while Walton holds a strong hold in the domestic market expanding to the international market
firmly. Their growth is notably impressive, already exporting to more than 20 countries.

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-sales

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https://www.newagebd.net/article/130322/walton-enters-european-market

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Rising bd.com. (2021, May 4). Walton celebrates export achievement: 1 officials awarded.

Risingbd.com. Retrieved April 27, 2023, from

https://www.risingbd.com/english/business/news/79380

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