Business Level Strategies and the Performance on an Industrial Enteprise Essay Example

a private limited company under the Companies Act 1994. Later on, it was converted into a public limited company through a special resolution passed in an extraordinary general meeting on September 21, 2008. MBL is a wholly owned subsidiary of Marico Limited in India.

Company Profile

Registered Office

The registered office of the company is located at House #01, Road #01, Sector #01, 4th and 5th floors, Uttara Model Town, Dhaka-1230. Previously, the registered office was situated at 272, Tejgaon Industrial Area, Dhaka-1208. The change of address to the current location took place on July 2, 2008. The authorized capital of the company is Tk. [Maintain and contents as provided]The company's authorized capital was Tk.10,000,000, which was divided into 1,000,000 ordinary shares of Tk 10 each. Additionally, the company was registered with a total of 400,000,000 ordinary shares of Tk.10.00 each, divided into 40,000,000 shares.

MBL is a wholly owned subsidiary of Marico Limited, India. The company's authorised capital was initially Tk. 300,000,000 divided into 30,000,000 ordinary shares of Tk. 10 each. This increase was approved during an extraordinary general meeting held on 18 September 2008. Subsequently, the authorised capital was further increased to Tk. 400,000,000 divided into 40,000,000 ordinary shares of Tk. 10 each. This increase was approved during an extraordinary general meeting held on 31 December 2008.

MBL is involved in the business of Branded Fast Moving Consumer Goods (FMCG) in Bangladesh. The company manufactures, markets, and trades various products under brands like Parachute, Aromtaic Gold, Camelia, Hair Code, Parachute Advansed, Parachute Therapie, Parachute Hair Cream, and Parachute After Shower Gel. MBL's products are distributed to consumers through its own distribution network consisting of 3 sales depots

and Messrs Kallol Limited, which are strategically located throughout the country.

The Agreement with Kallol Limited expired on 31 December 2008. MBL has started its Dhaka depot operations from 1 January 2009 to service its consumers in greater Dhaka. Factory Operations MBL has set up a manufacturing unit at Mouchak, Gazipur and went into commercial production in that unit from 27 October 2002. The factory land measuring 66 decimals and building had been acquired from Quality Chemical Industries Limited on 12th March 2007. Adjacent land of the factory measuring 128.50 decimals had also yet been purchased on 14 November 2007.

An agreement to purchase another plot of land, measuring 15 decimals, was signed on 14 November 2007. Marico Bangladesh Limited (MBL) is a leading player in the Fast-Moving Consumer Goods (FMCG) industry. MBL is a subsidiary of Marico Limited, India (Marico). MBL's range of products, including Pure Coconut oil, Hair care, and Skin Care, are available in over 450,000 outlets across Bangladesh. In the fiscal year 2007-08, MBL recorded a turnover of approximately Tk. 2650 Million (USD 38.4 Million). MBL markets well-known brands like Parachute, Aromatic, Camelia, Hair Code, and Beliphool. Most of these brands have dominant positions within their respective categories, particularly in the coconut oil segment. Parachute, one of the biggest brands in Bangladesh, holds a market share of around 73% in the branded coconut oil segment. It is widely trusted and recognized as one of the top brands in the country. Parachute was recently ranked as the 6th Best Brand in Bangladesh by Brand Forum and the 3rd Best Brand among FMCG brands. Since its launch in the late '90s, Parachute has established itself

as a symbol of 100% purity.

Parachute targets modern women who are embracing the new age and seeking improved means of personal care. The brand has a strong following among urban and rural populations in Bangladesh. Parachute Advansed Enriched Coconut Hair Oil was introduced in 2008 for women who desire more than basic nourishment. It is made from 100% pure coconut oil infused with lemon, henna, amla, and hibiscus to provide beneficial qualities. Consistent use of Parachute Advanced promotes the growth of healthy and beautiful hair.

Parachute Advanced is available in 300ml packs in all leading stores. Parachute Beliphool Light is a jasmine-scented light coconut hair oil for individuals who prefer non-sticky hair and use oil for hair management. This variant of Parachute Beliphool Light contains Vitamin E, which provides comprehensive nourishment to the hair and promotes blood circulation in the scalp, resulting in vibrant and lively hair. Launched in August 2008, Parachute Therapy has already gained recognition as the ultimate solution for hair fall problems.

Parachute Therapies' tackles RDF (root destroying factors) which encompass stress, pollution, water quality, inadequate hair care, imbalanced diet, and aging - the primary cause of hair loss. Parachute Therapies' offers natural Root Activating Alpha Proteins, a special mix of proteins, vitamins, herbs, and minerals that minimizes the impact of RDF, resulting in a decrease in hair loss within just 45 days. Additionally, in the second half of 2008, Parachute introduced its After shower range of grooming and nourishing products specially designed for men in Bangladesh.

The range includes Parachute Advanced After shower Hair Gels and Creams, which both style and nourish hair. These products contain Aqua Limon Moisturizers and Coconut Proteins that

promote hair health and style. The After shower Styling Gels come in Extra Hold and Wet Look variants, while the hair cream range includes Non-sticky Hair Cream and Anti-dandruff Hair Cream.

In terms of market status, the focus is on the consumer. Consumer needs, both stated and unstated, are proactively understood. Insights are vigorously translated into marketable products and solutions. Co-creation with consumers is also emphasized. Systems and processes are created to enhance consumer insights and knowledge.

Transparency and openness are promoted. Diverse opinions are allowed by listening without bias and receiving critique with mutual respect and trust. The organization creates space for diverse opinions by being approachable. Respecting other's time and space is also valued.

Opportunity-seeking is encouraged. Early opportunity signals in the environment are identified to generate growth options. An external focus is maintained, along with environment scanning for trends and shifts.converting signals into growth opportunities:

- Converting signals into growth opportunities: Excelling in continuous improvement of performance standards and building capabilities for long-term success.
- Continuously benchmarking and striving for world-class standards.
- Leveraging strengths while learning from both successes and failures.
- Developing systemic capabilities to sustain excellent results instead of taking shortcuts.
- Embracing boundarylessness by seeking support and influencing others beyond one's function or organization to achieve better outcomes without avoiding accountability.
- Proactively seeking support and influencing others to improve outcomes.
- Valuing multiple perspectives beyond one's functional viewpoint.
- Collaborating with others for better decisions while still being accountable.
- Fostering innovation through experimentation and calculated risk-taking to increase the likelihood of success with radical or pioneering ideas.
- Thinking in unconventional ways and taking calculated risks.
- Experimenting with radical or pioneering ideas through prototyping.
- Systematically reviewing and sharing the

lessons learned from all experiments.
- Having a global outlook by being sensitive to and adaptable in diverse cultural settings.
- Understanding global markets and being sensitive to diverse cultures.
- Being adaptable and willing to learn from different cultures and environments.
- Maintaining a focus on global applicability.Marico's Business Level strategy, known as MBL, revolves around adaptability in creating products, processes, or systems. MBL is a renowned player in the Beauty and Wellness industry, focusing on branded solutions. The company's management strategies emphasize differentiation and a unique mindset called 'Uncommon Sense', which serve as the driving force behind growth in all aspects of MBL's business. Whether it is a Line or a staff function, consumer centricity or pioneering efforts, these strategies form the solid foundation for Marico's commitment to enhancing people's lives worldwide. This commitment is achieved through the development of branded Beauty & Wellness products and solutions.

Marico seeks to provide brands that improve the attractiveness and nourishment of hair and skin. These brands are created using coconut, other natural ingredients, and scientific principles of hair and skin care. Marico also offers products that promote healthy living, using both agricultural ingredients in their natural or processed forms, as well as services. Furthermore, Marico plans to expand its branded products and services globally, beyond the Indian Subcontinent, through franchising.

Marico aims to be a leader in its various businesses by prioritizing consumer needs, setting new standards in product and service quality, and continuously improving through learning processes. The company shares its prosperity among members, shareholders, and associates who contribute to its equity and market value. Additionally, Marico strives to be a friendly corporate citizen by contributing to the betterment of

the communities where it operates. Sales turnover, productivity, and profits are key measures of success. In 2008, Marico's brand Parachute was ranked 6th most trusted out of 849 brands in the coconut oil category. Marico holds a 73% market share in this category and reaches over 9.25 million consumers each month. The company generated a turnover of about Tk.2650 Million. Marico's focus on sustainable profitable growth is evident in its consistent financial performance with a Compound Annual Growth Rate (CAGR) of 39% in turnover and 24% in profits over the past five years. Marico has established its own factory, corporate office, and depots throughout the country. A SWOT analysis highlights Marico's strengths, including being a powerful retail brand known for value for money, convenience, and a wide range of products available in one store.Weaknesses may arise for Marico, the largest grocery retailer in the country, as it struggles to maintain control over its vast empire despite having IT advantages. On the other hand, there are opportunities for growth by acquiring, merging with, or forming strategic alliances with other global retailers, with a focus on specific markets like Europe or the Greater China Region.

Threats - As the leading player in the industry, there are numerous competitors both locally and globally targeting the company. Some of the threats it faces include competitors with better access to distribution channels and the potential introduction of taxation on its products or services. In order to enhance performances, management perception is crucial. The company has positioned itself strategically to become a market leader in various segments it operates in. In just a short period of time, Parachute Coconut Oil has already

gained a significant market share in Bangladesh, currently holding a 72% market share in the branded Coconut Oil (CNO) market of the country.

The company has a great opportunity to convert customers who use loose coconut oil to branded products. With a focus on customer satisfaction, the company is targeting the mass market through a detailed marketing plan. The dynamic marketing team is driving this initiative. Furthermore, the management is actively working to expand their product range through new market development and strategic acquisitions. Marico Bangladesh appears to prioritize market promotion over product production. Management's response: MBL is a fully fledged FMCG company.

The FMCG sector's value chain goes beyond production and includes supply chain, sales promotion, brand building, etc. Worldwide, the combined value of all brands now exceeds half of the total balance sheet size. Marico's "Parachute" is the largest branded coconut oil globally. Following global standards, we primarily deal with brands and emphasize consumer satisfaction. MBL believes in the motto "Consumer is the King" and thus offers products that cater to their needs.