MGT 489

Section: 18

GROUP PROJECT

Walton Hi-Tech Industries Ltd

SUBMITTED TO
Nazlee Siddiqui
School of Business
Department of Management
North South University

SUBMITTED BY,

NAME ID

Mohiminul Ahmed Sami 1521079630

Fahmida Haque Khan 1513037030

 LETTER OF SUBMISSION

May 11, 2020

Nazlee Siddiqui
Lecturer
School of Business, Department of management
North South University
Bashundhara R/A Dhaka- 1229.
Subject: Submission of a report on “Walton Hi-Tech Industries Ltd”
Dear Mam,
Hope you are doing well. Thank you for assigning us to prepare a report on “Walton Hi-Tech
Industries Ltd.” for the MGT 489 course this semester. We have provided sufficient
information based on the internet and also from our own point of view. We have also provided
APA references of our resources.
We hope you will be delighted to see our report as we have done a thorough research. We are
very grateful for all your support and cooperation throughout the whole course. Without your
proper guidance, it was not possible for us to complete the whole project on time.

Best Regards,
Mohiminul Ahmed Sami
Fahmida Haque Khan
 TABLE OF CONTENT

EXECUTIVE SUMMARY 1

INTRODUCTION 2

Mission 2

Vision 2

Business Model of Walton 2

Organizational Culture 3

CRITICAL ANALYSIS 5

Vision 5

SWOT Analysis 6

Competitor Analysis 8

Corporate level Strategy 8

Business Level Strategy 8

Functional Level Strategy 9

Governance of the strategy 9

RECOMMANDATION 10

Changing Leadership Style 10

Increase Budget for Next Campaign 11

CONCLUSION 12

References 13
 WALTON HI-TECH INDUSTRIES LTD

EXECUTIVE SUMMARY
Walton is aiming to launch an effective strategy of product innovation for the organization to
defend its current market share. To increase the organization’s market share substantially in
the next 3 years Walton is going to bring some changes in its leadership style and future budget
plan. To make the environment friendlier to its employees and to appreciate more innovation
and creativity Walton is going to change its leadership pattern from Autocratic to Authoritative.
The organization is also going to increase its budget for its next campaign which will be more
focused on the upgrading of the IT.

1
 WALTON HI-TECH INDUSTRIES LTD

INTRODUCTION
Walton group of industries is the leading group of Bangladesh founded in 1977, by S.M Nurul
Alam Rezvi, as a trading company. After its introduction to now on, numerous subsidiaries and
alliances enriched the group and as a consequence, they went international. Now. Walton group
has businesses worldwide with about 17,000 employees. Walton hi-tech industries LTD is a
sister concern of R.B group. Walton has earned domestic and global recognition for its
experience and proven track record in a variety of electronics fields. Walton is the pioneer of
developing state of the art designs and modern technology having leading market share
specializing in Multi-Stored Refrigerators, Freezers, Air Conditioners, LED/ LCD televisions,
Motorcycles, Smart Phones and Home Appliances.

Mission

As Walton is the pioneer manufacturer of electronic fields in Bangladesh, their mission is to

continue their business journey through innovation and new technology. Ensuring competitive
price and superior quality of their product to achieve customer satisfaction. ‘It’s Our Product’
(in Bangla: Amader Ponno)—a major slogan of the brand, leaves a strong impression about
Walton’s commitment to deliver the best with Bangladesh identity.

Vision

WALTON has established a milestone as the highest exporting Bangladeshi enterprise in the
field of electronics, with a universal presence in over 20 countries and by 2020 the presence of
Walton will be ensured in almost every country in the world.1

Business Model of Walton

In the beginning Walton was just a trading company which imported raw materials. But in 1992
they started steel manufacturing. In 2002 Walton started its manufacturing in electronic fields.
Since then Walton has been moving forward. Walton has now turned into a leading home
appliances, electronics and automobiles manufacturing company in Bangladesh. It
manufactures refrigerators, freezers, air-conditioners, motorcycles, mobile phones, DVD
players, microwave ovens, washing machines, diesel generators irons and LCD, LED

1
"About Walton." https://waltonbd.com/about. Accessed 3 May. 2020.

2
 WALTON HI-TECH INDUSTRIES LTD

Television. It sells its products through more than 5,000 outlets, including 350+ plazas or
company owned showrooms, and exclusive distributors and around 17000 + dealers.
Moreover, Walton is highlighted because of its extraordinary leadership. Following table
shows the key people of Walton.

S.M. Nurul Alam Rezvi Chairman, R.B. Group

S.M. Shamsul Alam Managing Director, R.B. Group

S.M. Ashraful Alam Managing Director, Walton Hi-Tech

Industries Limited

S.M. Mahbubul Alam Director, R.B. Group

S.M. Rezaul Alam Director, R.B. Group

S.M. Monjurul Islam Ovee Director, R.B. Group

Today, under the leadership of Alam's eldest brother SM Nurul Alam Rizvi, Walton has
captured about 80 percent of the local refrigerator market in terms of unit sales and about 30
percent share in the local television market.2

Organizational Culture

Walton has 3 types of objectives in terms of their organizations culture which are, “Let's work
together”, “Don't say no”, “Apply your creativity”.

2
"Walton: Made in Bangladesh | The Daily Star." 3 Oct. 2015,
https://www.thedailystar.net/business/walton-made-bangladesh-150850. Accessed 3 May. 2020.

3
WALTON HI-TECH INDUSTRIES LTD

This Figure shows the entire profile of Walton

4
 WALTON HI-TECH INDUSTRIES LTD

CRITICAL ANALYSIS
Walton has achieved reputation through its innovative product in the local and international
market. It is also trying to keep the product price reasonable for its customers. They recruit
around 1000 employees in a year in the Research and Development department3. The engineers
of R&D wing are conducting massive research activities to manufacture world-class LED
televisions. They have already had some success because last year they launched smart LED
television. Walton Group’s MD SM Shamsul Alam said selling products is not the prime goal
of Walton. Rather, it wants to serve the country’s people through delivering the highest quality
technology-based electronics and electrical home appliances.4
Now it's time to introduce the product with the customers.

Vision

Walton will launch a new campaign. The name of the campaign is “Walton Digital Campaign
Season 7”. This campaign has some slight differences from season 6. The aim of the campaign
is to collect a huge database of customers to provide superior after sales service and to generate
sales. Especially Smart TV and Air conditioner sales. As Walton has already 30% market share
of Television in the local market, after this campaign we are expecting a 10% increase in market
shear.
We have several objectives for this campaign
● Duration of the campaign will be 3 months. We are expecting to start the campaign on
1st December of 2020 and end on 28th February.
● Customers will get 40 lakh worth different amounts of cash voucher by purchasing TV,
Refrigeration and Air conditioner and Home Appliance.
● Aim to sale Newly introduced SMART TV and AC models.
● Customers will get a cash voucher while purchasing TV, Refrigerators and AC up to 1
lakh taka. If they purchase other products worth 5000 taka they will get a cash voucher
upto 1000 taka.
● Aim to create a customer database so that if those customers lose their warranty card
those databases will help to provide them after sales service.

3
"Walton: Made in Bangladesh | The Daily Star." 3 Oct. 2015,
https://www.thedailystar.net/business/walton-made-bangladesh-150850. Accessed 5 May. 2020.
4
"Walton focuses on strengthening QC and R&D - Risingbd." 8 Dec. 2015,
https://www.risingbd.com/english/walton-focuses-strengthening-on-qc-and-rd/30113. Accessed 5
May. 2020.

5
 WALTON HI-TECH INDUSTRIES LTD

● Customers will get a special warranty time period for TV and AC which is 5 years.
● From these databases lucky 5 customers will get a total 10 lakh taka cash voucher at
the end of the campaign. On 28th February,2021 a ceremony was held which announced
the lucky 5 winners.

SWOT Analysis

Before launching the program, we have to look into the internal and external situation of the
company. We have to analyses strength, Weakness, Opportunity and Threat. If we look at the
internal situation we can see:

Strength
● Powerful supply & distribution
channel as well as customer service.
● Largest and one of the finest
electronics bases in Bangladesh.
● Experienced management team.
● Its distribution capability is wide and
it got loyal customers
● As Walton is the first country owned
MNC, they used the available
resources better than anyone
● Have human resource all over the
country
● Producing good quality SMART TV
like other good profile competitors.
Weakness
● The employee turnover rate in
Walton is high.
● Have a tendency of ignoring other
competitor presents.
● Low frequency regarding promotion
effort.
● Lack of proper decorations in
showrooms.
● Some specific products charged
higher (air conditions etc.) than
china based products.
● Units of Smart TV production are
few which don't meet the demand.

If we look at the external situation we can see:

Opportunity Threat
● Can provide more dealership in the ● Switching power of customer
semi urban area in local market increased
● Gradually increasing technological ● Government regulations on various

6
 WALTON HI-TECH INDUSTRIES LTD
improvement and socialization.
● Continuous demand for new,
innovative and quality products and
services from customers or
stakeholders.
● New products developing thoughts
and positive corporate image.
● Trustworthy interconnection among
distributors
● Online facilities and continuously
decreasing the price of Walton`s
products.
● The economic development of
Bangladesh.
electronics products increased.
● A shift of buyers' needs and tastes to
another product can happen.
● Now Walton has to deal with much
lower priced substitutes.
● Adverse demographic change can
happen.
● Increased operating costs and price
war.
7
 WALTON HI-TECH INDUSTRIES LTD

Competitor Analysis

Walton is dealing with several competitors in the market some of them are local brands some
of are international. Major competitors of Walton in the electronic field are:

Product Category Local Brand International Brand

Television Rangs, Walton, Vision, Sony, Samsung, Panasonic,

Singer, MyOne Toshiba, Phillips, LG, Sanyo

Refrigerator Walton, MyOne, Minister Samsung, Whirlpool,

Kelvinator, LG, Hitachi,

Air Conditioner Butterfly General, LG, Daikin, Gree,

Carrier, Whirlpool.

Home Appliances Electra, Singer, Eco+. Miyako, Sebec, Panasonic,

Sharp, Steamfast

Corporate level Strategy

The main goal is to increase the sales of the product so that the company can capture more
market share in the local market. Already Walton has 30% market share in the Television
market and in the months of January to May of 2019, they have generated 72% market share
in refrigerators and freezers market.5 Now, through this campaign they want to increase more
market share. Moreover, they also strengthen their relationship with the shareholder and the
stakeholder. The executive body of Walton believes soon they will capture the interest of most
of the customers in Bangladesh.

Business Level Strategy

For accomplishing corporate level strategy, we need to concentrate on business level strategy.
For giving 40 lakh worth cash voucher, the company will face a limited budget situation. So
they have to do the following things.
● Allocate the budget in decorating the Walton plazas as well as the promotion
● Allocate some budget in promotion
● Improve product quality with the help of the R & D department.

5
"Walton registers 77pc growth in fridge sales - Independent BD." 18 Jun. 2019,
http://www.theindependentbd.com/post/203822. Accessed 5 May. 2020.

8
 WALTON HI-TECH INDUSTRIES LTD

Functional Level Strategy

This level of strategy is very important to execute corporate and business level strategy. These
strategies specify the final outcomes of the others strategies. At this level we have to follow
these objectives.
● We need to train the employee so that they can cooperate with the business level leaders.
For example, Directors, Marketing Executives, Campaign executives.
● Promotion: Because of the shortage of the budget we have to promote our campaign
online. That means we have to be heavy digitally. Newspapers and OVC can be used
to promote the campaign.
● As Walton has some strength in the R & D department, we can ensure that every product
will be verified by that department to maintain the highest quality.
● We have to reduce the rejection while producing products that means decreasing
defective products to increase unit production.
● As one of our goals is to sell Smart TV and AC we have to increase Smart TV and AC
production so that it can meet the demand of the market.

Governance of the strategy

To control and maintain the strategy types of leadership is important. From the beginning the
higher authorities have maintained autocratic leadership. They took most of the major
decisions as their wish. Though they made some successful decisions, they did not consult with
the following employees. They act like “Do as I say”.
The executives and coordinators of the campaign should act as coaching leadership. They will
guide the area managers and plaza managers how to execute the campaign. But the dealer and
the plaza managers have to act autocratic leadership. Because they have to fill up the target
of the sale.

9
 WALTON HI-TECH INDUSTRIES LTD

RECOMMANDATION
Walton is the latest multinational electrical, electronics, automobiles and other appliances brand with
one of the largest well-equipped R & D facilities in the world which is carrying out its production
through different subsidiaries under the banner of Walton group. The organization has a workforce of
more than 20,000 in total of 22 production bases under more than 680 acres of factory area. Based on
the market demand the yearly production can be 10 million units each year. Walton is a giant
professional manufacturer in the relevant industry and has gained high reputation in terms of its
unbeatable capability for producing Electrical and Electronics goods in the most competitive way in
terms of quality, cost, design and innovation.

However, as Walton is willing to bring a new managing director alone with a new effective product
innovation strategy to increase its market share substantially in the next 3 years, here are 2
recommendations to obtain its goal.

Changing Leadership Style

Walton is greatly indebted to S.M. Nazrul Islam who is the founder chairman of R.B. Group and Walton
companies. He formed Rezvi and Brothers in 1977 which is the parent company of Wanton. His two
sons S.M. Nurul Alam Rezvi and S.M. Shamsul Alam joined R.B. Group and they became the Chairman
and Managing Director. Meanwhile his other three sons--S.M. Ashraful Alam, S.M. Mahbubul Alam
and S.M. Rezaul Alam joined the R.B. Group as Directors. Walton Hi-Tech Industries Limited was
formed in 2002 which is a sister concert of R.B. and Mr. Ashraful Alam became the Managing Director
of this company.

As it can be seen from the beginning of its journey till today the board of directors of this company
were always the family members of the founder and most of the time in this type of cases the Autocratic
leadership style is seen to be followed. And the problem with this leadership style is the leader thinks
he is the smartest and he is always right. It is more like a command and control leadership style.

To launch an effective strategy the right type of leadership style is necessary. And to increase its market
sustainability Walton needs to follow a leadership style which is visionary. The Authoritative leadership
style is more suitable for this company. This leadership style is a sign of visionary leaders who outlines
the way and sets the assumption while engaging and encouraging the employee in the way. When the
situation is uncertain, an Authoritative leader boosts the people.

An authoritative leader does not impose on his employees his plans for the company without explaining
it. He also appreciates others' advice and latitudes on how to achieve common goals.

10
 WALTON HI-TECH INDUSTRIES LTD

Increase Budget for Next Campaign

To sustain in the competing market Walton needs to increase its budget for its next campaign. As it can
be seen in the SWOT analysis that the smart TV production is few which does not meet the demand.
So for the next campaign Walton needs to produce smarter TV to meet the demand. Also the duration
of the next campaign needs to be longer. The showrooms also need to be more decorative.

The world is becoming more and more digital if the organization wants to cope up with the digital era
it needs to invest more on IT. Walton should consider making an online application if it does not want
to be outdated. An online app will also help to increase its sales as it is easier to access and the buyer
gets information about the product easily which makes the purchase of the products easier to the buyer.

11
 WALTON HI-TECH INDUSTRIES LTD

CONCLUSION
Walton is the top leading company in the field of electronics and home appliance in
Bangladesh. Their leadership helps a lot to achieve that reputation in locally and
internationally. But to launch an effective strategy they need to act according to the strategy.
To execute suggested strategy, they need to change their previous leadership perspective.
Moreover, they need to support the strategy financially. If they can execute that campaign, we
expect their market shear will increase at least 10 percent in total. They also need to coordinate
in the corporate, business and functional level strategy.

12
 WALTON HI-TECH INDUSTRIES LTD

References
About Walton. (n.d.). Retrieved from https://waltonbd.com/about

Chowdhury, S. A. (2015, October 02). Walton: Made in Bangladesh. Retrieved from

http://thedailystar.net/business/walton-made-bangladesh-150850

Independent, T. (n.d.). Walton registers 77pc growth in fridge sales. Retrieved from

http://www.theindependentbd.com/post/203822

Profile: Consumer Electronics Industry. (2018, October 09). Retrieved from

https://databd.co/profiles/industries/profile-consumer-electronics

Risingbd.com. (2013, January 15). Walton Bangladesh: A Brief History. Retrieved from

https://www.risingbd.com/english/Walton_Bangladesh_A_Brief_History/743

Risingbd.com. (2015, December 08). Walton focuses on strengthening QC and R&D.

Retrieved from https://www.risingbd.com/english/walton-focuses-strengthening-on-qc-

and-rd/30113

The Walton wonder. (2020, March 02). Retrieved from https://tbsnews.net/tech/walton-

wonder-50416

13