Faculty of Business Administration

American International University – Bangladesh (AIUB)

A Report on
“Organizational Structure & Design”
Deshbandhu Group

Supervised By:

S. M. Zakaria

Submitted By:

Mostafa Aminul Hassan Dinar Md. Abdullah-Al-Mukit Muhammad Abdur Rob MD Hasibul Hasaan
ID: 20-91676-1 ID 20-91582-1 Sogib ID- 20-91668-1 ID- 20-91647-1

………………………………… ………………………………… ………………………………… …………………………………

Date of Submission: 5th March 2020

28th February, 2020

S.M. Zakaria
Professor
American International University – Bangladesh (AIUB)

Subject: Submission of the Report on Organizational Structure and Design.

Dear Sir,

At first we would like to express our humble respect and sincere gratitude to our
honorable faculty and course teacher (Leadership and Management Skill) Professor S.
M. Zakaria for kind and student friendly approach and attitude to led us through the
executive path of business studies. It is our great pleasure to submit our report as a part
of our EMBA program to you that we are assigned to prepare under your direct
supervision on the topic entitled “Organizational Structure and Design”.

We have got the opportunity to work with officials of different sections of Deshbandhu
Group to learn Organizational Structure and Design processes and procedures
effectively. We tried our level best to present the detailing of the organizational
structure and design of such one of the leading group of companies in the country.

Finally we really love to convey our soulful thanks to our course faculty S. M. Zakaria for
his kind conscent and practical orientation of conducting such kind of assignment. We
are fortunate enough that we have got an experienced and efficient professor like you to
guide us and help us to be in the right track.

It will be a great honor for us if you kindly accept our report.

Sincerely yours

Name ID
Mostafa Aminul Hassan Dinar 20-91676-01
Md. Abdullah-Al-Mukit 20-91582-01

Muhammad Abdur Rob Sogib 20-91668-01

MD Hasibul Hasan 20-91647-01

2
 Content

Serial No. Name Page No.

01 Acknowledgement 4
02 An Executive Summary 5
03 Introduction to the Report 6
04 Organization Overview 9
05 Objective & Format 12
06 Company Background 13
07 Overview: Deshbandhu Sugar Mills Limited 17
08 Organizational Structure (Deshbandhu Group) 18
09 Statistical Data 20
10 DBG: Vision, Mission & Objective 21
11 Deshbandhu Textile Mills Ltd 23
12 Deshbandhu Fiber Ltd. 24
13 GM Holdings Limited 25
14 Trading Companies 26
15 Shopping Mall: RAPA PLAZA 27
16 Deshbandhu Powerplant Limited 28
17 Deshbandhu Media Limited 28
18 Deshbandhu Percel And Logistics Services Limited 29
19 Sahera Waseque Hospital Limited 30
31 Conclusion 31

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 Acknowledgement

We would like to start the acknowledgement by gratefully thanking our

supervisor Professor S. M. Zakaria, who have showed us the path to bring
this case study to the light by suggested us the proper format and provided us
a sample for preparing this report. Next, our warm-hearted gratitude belongs
to the HR department of Deshbandhu Group, who has provided us the great
deal of information, adequate data and images and cooperated us for the
accomplishment of this report successfully. Last but not the least, we would
definitely like to thank each and every staffs of the Brand and Communication
Department of Deshbandhu Group for their kind assistance regarding the
report without whom it would not be possible for us to complete this difficult
task. We got all the necessary guidelines, cooperation, advice from them to
complete this complicated task. Finally we are very much thankful to
Deshbandhu Group, its management for their cordial support to prepare this
case study with important information and data.

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 An Executive Summary
The report is prepared on "An Analysis on Deshbandhu Sugar Mills Limited".
Deshbandhu Sugar Mills Limited has a large products line like mineral, energy
drinks, different types of juices, various types of cold drinks. To maintain this
large product line, Deshbandhu built a strong network in all over this country.
Moreover, Deshbandhu has specialized and skilled FIR to run different
strategies to capture large number of share. Deshbandhu Sugar Mills Limited
organize different and exciting promotional activities to maintain their current
market share and capture others share. In this case, Deshbandhu Sugar Mills
Limited got extra facilities because it is performed under the shadow of
Deshbandhu Group, which is one of the biggest groups of Bangladesh.
Deshbandhu Sugar Mills Limited strongly aligned with mother company
Deshbandhu Group to create synergy. That's why the turnover of Deshbandhu
Group and Deshbandhu Sugar Mills Limited is higher than that of other
companies.

The entire report in strategically divided into three parts, First part involves
relevant and accurate information of the company Deshbandhu Sugar Mills
Limited Ltd (DBBL). Overviews of the parent company DESHBANDHU GROUP,
its business units, functional and operational units are also discussed. In the
second part, I analyse the DBBL's overview followed by the 4p (Product, Price,
Place, Promotion) analysis, SWOT analysis, Competitive analysis along with the
marketing strategy analysis and budgeting are being covered in this part. The
third part involves the in-depth analysis of my research work formatted as per
research technique, hypothesis and data presentation and analysis, hypothesis
testing, research findings summary etc. The derived recommendation part of
my research is also being compiled on this segment.

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 Introduction to the Report
"Organizational Structure & Design“

Objectives of the Study

Organizational Structure: The formal arrangement of jobs within an
organization.
Organizational Design: A process involving decisions about six key
elements-
• Work specialization
• Departmentalization
• Chain of command
• Span of control
• Centralization and decentralization
• Formalization

• Work Specialization
 The degree to which tasks in the organization are divided into
separate jobs with each step completed by a different person.
 Overspecialization can result in human diseconomies from
boredom, fatigue, stress, poor quality, increased absenteeism, and
higher turnover.

• Departmentalization
 Functional: Grouping jobs by functions performed
 Product: Grouping jobs by product line
 Geographic: Grouping jobs on the basis of territory or geography
 Process: Grouping jobs on the basis of product or customer flow
 Customer: Grouping jobs by type of customer and needs

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• Chain of Command
 The continuous line of authority that extends from upper levels of
an organization to the lowest levels of the organization and clarifies
who reports to who.

• Span of Control
 The number of employees who can be effectively and efficiently
supervised by a manager.
 Width of span is affected by:
 Skills and abilities of the manager
 Employee characteristics
 Characteristics of the work being done
 Similarity of tasks
 Complexity of tasks
 Physical proximity of subordinates
 Standardization of tasks

• Centralization
 The degree to which decision-making is concentrated at a single
point in the organizations.
 Organizations in which top managers make all the decisions
and lower-level employees simply carry out those orders.

• Decentralization
 Organizations in which decision-making is pushed down to the
managers who are closest to the action.

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• Formalization
 The degree to which jobs within the organization are standardized
and them extent to which employee behavior is guided by rules
and procedures.
 Highly formalized jobs offer little discretion over what is to
be done.
 Low formalization means fewer constraints on how
employees do their work.

8
 Organization Overview:

Fast moving consumer goods (FMCG) are experiencing a successive growth in

our country and goods like beverages are in a flourishing state. Everyday
thousands and thousands pieces of beverage products are being consumed.
And to meet the demand and diversified taste, local as well as foreign
companies are immerging and investing in this venture. Many local companies
and foreign franchises have developed an extreme competitive environment in
the beverage market. The beverage market is basically a compilation of wide
range of products with certain attributed affixed with it. The major product
categories that are the core determinants of our market are enlisted below:
 Deshbandhu Sugar Mills Limited, established in 1932, is the pioneer sugar
refinery in Bangladesh and is the first ever member of Refined Sugar
Association (RSA) of London. This previously state-owned Sugar Mills was
turned to private sector refinery in 2001 and kicked off its operation under
its new management in 2002. Since then, Deshbandhu Sugar Mills Ltd.
remains the apex sugar refinery with its world class product quality and
packaging.
 Deshbandhu Polymer Limited is a PP Woven bagging plant, an effort of
vertically integrated diversification of Deshbandhu Group. The basic plant
is supplied by Hao Yu Precision Machinery Co. Ltd. of Taiwan &
LohiaStarlingerLtd., India. Being registered with Board of Investment (BOI)
and Joint Stock Company in 2006, the plant started its production in 2007
with a yearly capacity of 12 Million 50 kg PP woven bags. Recently the
capacity has been expanded to 3.60 million 50 kg PP woven bags per year.
While maintaining its export class quality in PP yarn extrusion, weaving,
film blowing, printing, cutting and stitching, Deshbandhu Polymer Limited
is emerging as the fastest growing PP woven bag plant in the country with
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a wide range of products.
 Deshbandhu Cement, an elegant brand product of Deshbandhu Group,
has finally emerged in the flourishing market of Bangladesh driven by ever
thriving consumer demand and confidence.
 SAHERA AUTO RICE MILLS LIMITED is another effort of vertically
integrated diversification of Deshbandhu Group. The plant is fully
automatic and one of the best and modern fine rice producing units in
Bangladesh where the production capacity is 50,000M. Ton per year.
Competing companies introduces different taste in their products within these
product categories to attain greater market share. Companies impose variety
sorts of marketing strategies to raise their products in the product-life-cycle
(PLC). The entire atmosphere of the beverage industries influenced me to focus
on this segment of the market and experience the operational aspects closely.
For my internship report, I have focused on the topic which is "The marketing
strategies used by a local company, Deshbandhu Food and Beverage Ltd
(DSML), and a comprehensive study and analysis of the consumer perception
regarding these strategies followed by my recommendation regarding the
brand building". Throughout my internship period, I worked with a beverage
manufacturing company Deshbandhu Sugar Mills Limited, and within this
period I got exposed to the entire functioning of how a beverage company
operates in the market. The first hand experience was the core corner stone of
my entire report work.

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 Objective & Format

The core objective of selecting the topic is to better understand the beverage
industry and its respective marketing strategies. Deshbandhu Sugar Mills
Limited Ltd (DSML) came into the food & beverage industry only a few years
back. And within these few years the company came up with wide range of
beverage products. Each of the products are introduced and marketed with
different marketing strategies in order to establish a strong brand image. The
objective of my internship report was to identify whether the marketing
strategies and unique selling preposition (USP) used by DSML for its products
are communicated and perceived by the consumers in the exact pattern
desired by the company. Research and analysis on the consumers helped me to
depict and provide appropriate recommendation regarding the marketing
strategies of brand building of AFBL's products.

11
 Company Background
Parent Company overview (DESHBANDHU GROUP)
Enlightening the past history of the business world in Bangladesh,
DESHBANDHU GROUP OF INDUSTRIES is considered to be one of most
profound and aged industries that is still sustaining with great success and
prosperity. It was more than twenty years ago the company emerged into the
market, and it was as small-time jute traders.

Deshbandhu Group is a leading corporate house in Bangladesh. The Group is

engaged in manufacturing and marketing of Refined Sugar, Food and Beverage,
PP Woven Bag, Cement, Ship Management, Automatic Rice Milling, News
Papers publications, Woven Sweater Manufacturing, Producing Power, Real
Estate Development and Trading of Bulk Commodities. Since its inception as a
trading house, over the last 20 years, this Group has placed itself as one of the
largest fertilizer and bulk commodity importers in the country.

Deshbandhu Group entered into the manufacturing business by setting up the

first ever sugar refinery namely “Deshbandhu Sugar Mills Ltd.” in Bangladesh.
This flagship company in Bangladesh is the only who has got membership of
Refined Sugar Association (RSA), London and the sole exporter of sugar against
Everything But Arms (EBA) Initiative to European Union.

Entrepreneur, Founder and life time Chairman Late Mr. Sheikh Deshbandhu
Uddin then initiated the business in 1950s with a single product of cigarette
naming Deshbandhu Biri. This brand is one of the biggest and well known unit
of Deshbandhu Group and it is considered to be one of the oldest and most
well-known product across the country and in the few international market as
well. Then in the late 70s Dhaka Tobacco Industries came to the fold of
Deshbandhu Group when government decided to disinvest and hand over the
factory to the private sector from the nationalized sector.
12
It was the first booming stage of Deshbandhu Group and from then onwards
this entity diversified its business in various product line and engrave the peak
of success.
From such small beginnings, it has expanded into one of the top corporations In
Bangladesh, and not only in size. Deshbandhu Group is proud of its infallible
quality and excellent service by valuing its consumers as unique individuals and
trying best to provide merchandise to suit the needs of each distinct consumer
group.

DESHBANDHU group has never limited its aims to profit making. Besides
playing a part in developing the country commercially, it has also worked hard
to preserve its environment and culture. The company is proud to say that the
word wastage means little to them; all their factories have been constructed
with recycling and the environment in mind. The non-profit making concerns of
the Group are involved directly in sustaining the progress of Bangladesh. A large
number of people are employed by them, and cared for as members of the
DESHBANDHU family.

13
DESHBANDHU group copes with the present versatile market by being
flexible. Creative new ventures are the secret of our accomplishments.
Portfolios of their ventures are enlisted in the following page:

No. of No. of
SL Member company Officers Workers Total

1 Head Office 130 28 158

2 Deshbandhu Cement Mills Ltd. 21 176 197

3 Deshbandhu Sugar Mills Ltd. 62 425 487

4 Deshbandhu Polymer Ltd. 34 699 733

Deshbandhu Sugar Mills Limited

5 Ltd. 49 361 410

6 Sahera Auto Rice Mills Ltd. 8 63 71

7 Deshbandhu Parcel & Logistics Ltd. 11 40 51

Deshbandhu Shipping Limited

10 17 77 94

Southeast Sweaters Limited

11 21 178 199

Deshbandhu Textile Mills Ltd

12 14 146 160

Deshbandhu Fiber Ltd.

13 18 61 79

GM Holdings Limited
14 8 15 23

Trading Companies
15 14 28 42

Deshbandhu Powerplant Limited

16 11 64 75

Deshbandhu Media Limited

17 7 19 26

Total 2805

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Each of the ventures of DESHBANDHU Group is entitled to be profitable and this
aspect makes them extremely financially strong in the market. Among all the
ventures or units of Deshbandhu Group, Dhaka tobacco industry is the most
profitable one which compiles of the products like Deshbandhu Bin, Dolphin
match, FireFox match etc.

Each of the companies has its own directors who are the offspring of Late Mr.
Sheikh Deshbandhu Uddin. And for each company there is assistant director and
general manger accountable to the respective directors for their operations.

The following departments:

 Finance & Accounts Dept
 Audit Dept
 Administration Dept
 Human resource (HR) Dept
 Purchase Dept
 Import & Export Dept
 Ad & Creative Dept
 IT Dept
 Transport Dept

Are common for each of the enlisted twenty-seven companies and

each department has individual sub-units working separately for all the
companies. With all these, Deshbandhu Group has turn out to be a gigantic
industry which compiles varies category of business and are raging success
towards every sector. Lately Deshbandhu Group has captivated a huge venture in
the beverage market of Bangladesh and has entered in the market with the name
DESHBANDHU Food and Beverage Limited (DSML).
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 Overview: Deshbandhu Sugar Mills Limited

DSML: Background
The company Deshbandhu Sugar Mills Limited Ltd(AFBL), a unit of Deshbandhu
group, came into business in year 2006. It incorporates manufacturing of
variety sort of snack and beverage products selling them to the local market as
well as some of the international market. DSML was a project of TK-450 crore
(appox) and the investment was being made by the parent company
Deshbandhu Group itself, no financial outsourcing was made. And any further
investment needed will be supported by the parent company as well. Since the
invasion of DSML, the company is using its strong resources continuously to
provide various ranges of products in different product lines to its customers.

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 Organizational Structure (Deshbandhu Group)

Head office of Deshbandhu group is compiled in two multi storied building

name DESHBANDHU HOUSE situated in road 27, block K, Banani, Dhaka.
Deshbandhu Group maintains a mechanistic organizational structure where
bureaucratic environment prevails in the work place. Decision making
processes are very centralized towards the directors and top-level executives.
Organogram of the group is graphically shown in the following page:

Chairman
Mr. Golam Mostafa

Managing Director
Mr. Golam Rahman

Advisor

Executive Director

Project Director

General Manager - Group

General Manager - Factory

Company Secretary

Commercial Manager

Accounts Manager

Marketing Manager
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Each of the companies has its own directors who are the offspring of Late Mr.
Sheikh AkijUddin. And for each company there is assistant director and general
manger accountable to the respective directors for their operations. The
following departments:

Human Resource (HR) Department

Administration Department
Deshbandhu Group

Audit Department

Finance & Account Department

Purchase Department

Import & Export Department

Brand & Communication Department

Transport Department

Are common for each of the enlisted twenty-seven companies and each
department has individual sub-units working separately for all the companies.
With all these, Deshbandhu Group has turn out to be a gigantic industry which
compiles varies category of business and are raging success towards every
sector. Lately Deshbandhu Group has captivated a huge venture in the beverage
market of Bangladesh and has entered in the market with the name
DESHBANDHU Food and Beverage Limited (DSML). 18
 Statistical Data

Deshbandhu Group is not a public limited company and not enlisted in the
stock exchange market. It is a complete privately owned venture with no
external public share and corporate share. Each of the ventures of
DESHBANDHU Group is entitled to be profitable and this aspect makes them
extremely financially strong in the market. The directors are the offspring of
the late chairman and founder.
With no debt in the market, Deshbandhu Group of Industries are operating
and performing in the optimum level and is considered to be one of the top
notch leading industries in Bangladesh. Some statistical facts of Deshbandhu
Group is stated below:
 Total number of employees: 50057 (approx) in various categories.
 Annual turnover (revenue) of the entire group in year 2016-2017 was
Tk.23.59billion/ Tk.2358.66 (Crore) approx.
 Tax paid in year 2016-2017 was Tk.15.24 billion/ Tk.1524 (Crore)
approx.
 Tax paying amount is close to 3% of the annual national budget of
Bangladesh. Total investment: Tk. 4.5 billion/450 Crore (approx).
 National achievement: 12

Employees of the Departments of Finance & Accounts, Audit, Administration,

Human resource (HR), Purchase, Import & Export, Ad & Creative, IT, Transport
are NOT included in the 338 total employee list. Employees in these
departments work for DSML but they are considered to be the employees of
DESHBANDHU Group in their respective departments and all their salaries and
benefits are disbursed as per Deshbandhu Group's notion not from DSML.

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 DBG: Mission, Vision & Objective

Vision
We view business as means to the material and social well being of the
investors, employees and the society at large, leading to accretion of wealth
through financial and moral gains as a part of the process of the human
civilization.
 

Mission
Our Mission is to produce and provide quality products, maintain stringently
ethical standard in business operation, and also to ensure benefits to the
shareholders, stakeholders and the society at large.
 

Objective
Our objectives are to conduct transparent business operation based on market
mechanism within the legal & social frameworks with aims to attain the
mission reflected by our vision.

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 Deshbandhu Sugar
Mills Limited

Deshbandhu Sugar Mills Limited, established in 1932, is the pioneer sugar

refinery in Bangladesh and is the first ever member of Refined Sugar
Association (RSA) of London. This previously state-owned Sugar Mills was
turned to private sector refinery in 2001 and kicked off its operation
under its new management in 2002. Since then, Deshbandhu Sugar Mills
Ltd. remains the apex sugar refinery with its world class product quality
and packaging.
The success of Deshbandhu Sugar Mills Ltd. has crossed the borders and
brought another laurel for Bangladesh by pioneering the country’s first
ever export of sugar in 2003-04 to France under EBA initiative which they
followed in later years as well. Deshbandhu Sugar mill initially started with
500 MT production capacities (refining raw sugar) and now its has been
extended to 1500 MT production/ refining capacity per day. Prime
ingredient of Sugar is collected from natural and organic sources to
produce premium quality refined sugar to ensure health of the
consumers. We are one of the major market player in B2B business and
delivering to major sugar whole sellers across the country. We are also
exporting sugar to subcontinent, south Asian region and Middle east
market. These are both whole sales and retail in middle east region. We
are also using our premium quality refined sugar in raw materials for our
beverage products where we are delivering more than 10 SKU in beverage
line up.

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Number of employees:
487
Production capacity:
1500 MT / Day

22
 PACKING
Retail Pack 1 Kg Retail pack 1 Kg
DUBAI Market Bangladesh Market

50 Kgs Pack

23
CERTIFICATION in SUGAR

24
CAPACITY
Capital Machinery Exporter Origin
Capital Machinery- Cutt5ong and Sewing Gabbar Engineering Co., India India
Machine  
 
Capital Machinery- Circular Loom Machine Starlinger & Gesellschaft m.b.h ., Austria Austria
   
Capital Machinery- Tapeline Machine Technology Plastomech Pvt. Ltd., India India
   
Capital Machinery- Manual Printing and SAR Industries., India India
Hydraulic Bale Press Machine  
 
Capital Machinery- FIBC Cutting Machine Navrang Machinery Pvt. Ltd., India India
   
Capital Machinery Axletech Engineering Pte . Ltd., Singapore China
 
Capital Machinery Shrijee Process Engineering Works Ltd., India India
 
Capital Machinery Korexim Corporation Ltd., Korea Korea
Capital Machinery Polymma ( H.K) Co., Ltd., China China
Capital Machinery Man-n-Machine., India India
Capital Machinery Ata Machinery (Guangzhou) Co., Ltd., China China
Capital Machinery Guangdong Agricultural Machinery Import & Export China
Company., China
Capital Machinery Guangdong Agricultural Machinery ., China China
Capital Machinery S.k. Enterprises ., India India
Capital Machinery Lohia Starlinger Ltd., India India
Capital Machinery Shrijee Process Engineering Works Ltd., India India
Brand New Pillow Packing Machine Shenzhen Onetuch Business Service Ltd, China China
   
Cookie Depositing Machine Lanton Machinery Equipment Co., Ltd, Hong Kong China
   
Cake/Toast Machine and Mixer Best Way Trade Link (HK) Ltd, Hong Kong China
   
Electric Stacker With Battery Charger Jiangsu Onetouch Business Service Co., Ltd, China China
   
Laboratory Equipments Atago Co., Ltd, japan Japan
   
Direct Puffed Chips Processing Line- Capital Handyware China Engineering Co., Ltd, China China
Machinery  
 
Fork Lift- Capital Machinery Guangxi Liugong Machinery Co.Ltd, China China
   
CAPITAL MACHINERY Guangzhou Tech-Long Packaging Machinery Co., Ltd, China
  China
 
COOLING TOWER (Capital Machinery) Pyramid Co., Ltd Taiwan Taiwan
   
SCREW AIR COMPRESSOR (Capital Gardner Denver FZE, U.A.E Europe
Machinery)  
 
FIRE TUBE STEAM BOILER STEAM MATIC Bono Energia S.P.A, Italy Italy
( Capital Machinery)  
 
AF PET COMPRESSOR (Capital Machinery) Ateliers Francois SA, Belgium Belgium
   

25
 Conclusion
The experience achieved from the organizational structures of Deshbandhu
Group(DBG) enhanced our knowledge portfolio to a greater extent. Every
department of DBG contributes intensive effort regarding the brand building
of the products. The reflection of the effort could be seen from the strategic
marketing/communicational theme and USPs of brands like sugar, polymer,
cement, rice etc. The pace of which DBG is currently accelerating, will
undoubtedly lead the company to the peak of success where majority of the
market shares will be withhold by the brands of DBG. We are concluding our
case study by stating that, being able to work with a company like DBG
enabled us to achieve a bundle of practical knowledge which will turn out to
be a great support for our future strategy formulations.

The main strategy of the group is designing their business as the demand of
the products. Like about brands like sugar, cement, rice, they selected to make
the business through B2B as they prepared buyer throughout nations. On the
hand, about the brands like soft drinks, they prefers to go to direct customers
to enhance their business from door to door.

This study is conducted for the purpose of generating knowledge about to

learn and understand the structure and design of an organization. And our
team is very obliged to Deshbandhu Group, one of the biggest group of the
country, for giving us such privilege and time to research, study and
understand this big venture.

At the end, we truly like to express our utmost gratitude to the our honorable
faculty and coarse teacher S. M. Zakaria sir for leading us from the front to
attain the knowledge of designing such a huge group of industries, to attain
the experience of working with one of the leading group of the country and to
accomplish the goal of case study.

It’s such a great honor for us being your student.

Thanks.

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