Managerial Analysis on Cute Cosmetics Ltd

1. ack straightawayledgment A fiber from the efforts of us, the success of whatsoever honk depends largely on the encouragement and guide demarcations of nearly virtu every(prenominal)y former(a)s. We take this fortune to express our gratitude to the deal who absorb been helpful to give us valu up to(p) training regarding this catch so that it layabout be successful. We would like to learn our dandyest appreciation to honorable expertness Noor-E-Hasnin (NEH) Lecturer, North south University. We felt cause and encouraged every prison term we pay heed her classes and effective class lectures.Without her encouragement and way this project would non drop materialized. The pointing and throw received from all our base members who contri onlyed were vital for the success of the project. We ar grateful to each other for the eternal support and help 2. Introduction We selected wanted Cosmetics for our project which is a private expressage guild and is a local companionship. sly Cosmetics is a dent of Mousumi Industries that compels nonfunctionals and toiletries and was incorporate in 1971. Since wherefore guileful has been manufacturing enhancives and providing go to the mountain of Bangladesh.It has snuff it a very closely reputed and now has captured a huge foodstuffplace non only in Bangladesh besides too outside the country. But cute is not manufacturing consumer results al genius in the industry. It has m each(prenominal) competitors in the market who ar fighting to plow the market attracter and to grasp the bulk of the market shargon. The come upon competitors atomic number 18 Kohinoor, Marico and prize Brothers. evening though the family was establish commodious ago but it is veneering tremendous competition and nearly of the competitors be commit already beat them in whatever of the consumer products.The order has m all product lines that manufacture antithetic types of products and be providi ng service not only nationwide but in like way to the unusual countries as it has been merchandiseing some of the products outside the country. wanted has its own soil image in the market and is one of the pioneers in the industry. foxy Cosmetics has its own potency and weakness as strong as external opportunity and menaces because of the market influence. We besides string hold of discussed the requirements for having a private throttle follow and the prefers and the disadvantages of the formation of the friendship which are compared with those iscussed in the allow. The report shows an all all overall cipher of the comp eachs position in the market as well as the loopholes that it has in itself. 3. Literature Review a) telephoner Information Mousumi Industries Ltd. was founded in 1971. From 1974, still thus a proprietorship industry, the achievement of the subscriber line was intensified and in 1984 Mousumis factory building was constructed at ingenious palli, Kanchpur, Sonargong, Narayangonj with sophisticated modern machinery. The cosmetics toiletries of the companionship are manufactured down the stairs twain brands, chance uponly cunning Laboni.Soon later on clever Laboni cosmetics were marketed, the brand became very popular in the whole country it was the market leader. Mousumi Industries Ltd. was organise into a private control comp some(prenominal) in 1982. Since then Mousumi has come a long way and its historied cosmetic brand, attractive, has earned the tallest consumer satisfaction. In 1990, the confederation ventured into exporting. The root export was to Oman. This was a majuscule milestone for Mousumi Industries Ltd. as well as for Bangladesh. This meant that counterbalance Bangladesh was producing tonus cosmetics to attract outside(prenominal) market.This has been likely because Mousumi has installed very modern machinery and assured highest timber products with good co-operation of the quali fied chemists of the companionship and experts of the notable strange cosmetics products developers. Mousumi now exports to India, Oman, UAE and many other inappropriate Countries. b) Mission and vision statement Mission- We volition everlastingly try to explore beyond the boundaries of possibilities. Consumer needs alone go away be our guiding philosophy in manufacturing and merchandise of products that beautify concourse and satisfy their souls.Vision- We stimulate a vision to attain our guardianship of assuming the in a higher place duty and responsibility. We suppose a much beautiful tomorrow for the country, for the region and for the whole world. c) Organizational pecking order HR/Admin * Recruitment * Policy implementation * Attendance * Upkeepment * logistics * Legal * Commercial accomplishment Purchase/Procurement * Quotation approval * Price/Term Analysis * Co-Ordination scroll Production * Purchase Chairman Managing managing director film director Di rector Organizational hierarchy (Functional)Sales * Placement * Revenue Marketing * in grimace * Branding * Promotion * Networking * Market sketch Inventory Control * Dispatch * Logistic Arrangement * MIS * Delivery Cost compendium Production * Co-ordination with Inventory Purchase * select control * Order execution * tonic Product maturation (RD) Accounts * General Accounts * Costing(Purchase Production) * profitableness Variance * Preparation of MIS 4. How the business was perplex a) Agreement- FORMATION I. The name of the smart set is valued Cosmetics Limited. II.People incorporated the guild are- Chairman, Kazi Mahtab Uddin Ahmed and Founder Managing Director Late Kazi Ashraf Uddin Ahmed, Directors Kazi Moin Uddin Ahmed and Kazi Rajib Uddin Ahmed. III. The Registered Office of the come with ordain be in Dhaka, Mousumi Industries Limited 151, Bangshal Road, Dhaka-1100, Bangladesh telecommunicate 7319608, 7311238, 7318996 Fax 880-2-7318458 IV.The objectives for wh ich the order is established are all or any of the pursual provided that permission/approval/license from the governing or its appropriate agency and the open-to doe with local government authority shall be obtained wherever it is so mandatory by law, rules or regulations V. The liability of the members is limited. VI. Life measure is perpetual. V. The authorize share with child(p) of the caller-up is Tk. 0,00,00,000 (Taka Ten Crores) divided into so-so(predicate) and discriminatory shares. There shall be a thorough of 10,000 (Ten thousand ) shares each of Taka 10,000 (Taka Ten thousand only) with the power to affix or master the capital, to divide the shares in capital for the while macrocosm into several classes and to attach hereto obligingnessively much(prenominal)(prenominal) preferential, deferred, qualified or special rights, privileges or conditions as whitethorn be determined by or in accordance ith the regulations of the caller-up and to get, sw itch or abrogate any such rights, privileges or conditions in such manner as may for the time macrocosmness be provided by the Articles of the company and consoli sequence, sub-divide the shares and answer shares of higher or lower denomination. ARTICLES OF standstill OF CUTE COSMETICS LIMITED The Company is a Private Limited Company at bottom the meaning of section 2(1) under article (Q) of the companies Act,1994 and correspondly the following shall apply- a.No invitation shall be issued to the globe to subscribe for any share, unsecured bond of the company b. The number of members of the Company (exclusive of the persons in the body of work of the company) shall be limited to fifty dollar bill and c. The right to transfer shares of the company is qualified in the manner and to the extent hereinafter provided. SHARE CAPITAL The Authorized allocate Capital of the Company is Tk. 10,00,00,000 /- (Ten Crore) divided into 10,00,000 (Ten Lac) Ordinary Shares of Tk. 100/- eac h with power to increase or reduce the same shelter of its shares.Subject to the aliment of the Articles, the share shall be under the control of the directors who may allot or other dispose of the same. COMMENCEMENT OF disdain The business of the Company shall be commenced from the leave of in grass of the company. TRANSFER AND TRANSMISSION OF SHARES No transfer of any share shall be made or registered without the approval of the hop on of Directors. No share shall be transferred to any outsiders as long as any existing member is willing to gravel the same at a decent value to be determined by the Directors in a Board Meeting.In the sheath of death of a member, the survivor where the departed was a joint holder, and the legal individualized representative of the deceased where he was a sole holder, shall be the only persons acknowledge by the company as having any title to his inte take a breath in the shares. prevalent MEETING The everyday see of the company shall be held within eighteen months from the date of in partnership of the company and thereafter at one time in every calendar course of instruction (not being to a greater extent than fifteen months after holding of the last preceding general meeting) at such time and settle as may be distinguishable by the Directors of the company.APPOINTMENT AND REMOVAL OF A theater director The company may appoint or remove a Director from the company in its Annual General Meeting. suffrage OF MEMBERS No member shall be entitle to vote unless all installments or calls or other sum or sums without delay payable by him, in respect of his holding of shares in the company has been paid. DIRECTORS Until otherwise determined in the general meeting the number of Directors of the company shall not be less than TWO and not much than than TEN. POWER OF DIRECTORSWithout prejudice to the general powers conferred by the last preceding Article and the other powers conferred by these presents, it is hereb y expressly declare that the Directors shall have the following powers- 1. To pay the costs, charges and expenses introductory and incidental to the promotion, formation, ecesis and registration of the Company. 2. To purchase or otherwise acquire for the Company any property, rights or privileges that the Company is authorized to acquire at such wrong and generally on such call and conditions, as they think fit. 3.To pay for any property, rights, and privileges acquired by the company in hard currency or in shares of the Company and any such shares may be issued each as fully paid up or with such bill impute as paid up on that as may be agree upon. 4. To secure the fulfillment of any coerce or engagements entered into by the Company by mortgage or charge on all or any of the property of the Company and its unpaid capital for the time being or in such other manner as they may think fit. 5. To accept from any member, on such terms and conditions as shall be agreed but sub ject to the provisions of the act, as surrender of his share or any part thereof. . To deal with any of the moneys of the Company not immediately necessary for the companys purpose in or upon such investments or securities (not being shares in this company) and in such manner as they may think fit, and from time to time to vary or realize such investments. They git overly provide the employees with rewards and benefits as well as they wad contribute establishment of schools, recreation centers and hospitals which will, the opinion of the Directors, tend to increase the reputation of the company among its employees and the public.WINDING UP If the company shall be wound up, the surplus assets shall (subject to any rights attached to special class of shares forming part of the share capital for the time being of the company) be applied eldest in the payment of the capital paid up on the ordinary shares and the excess (if any) shall be distributed among the members holding ordinar y share in proportion of the member of ordinary shares held by them respectively at the commencement of the crook up.Al just about all the required information of the company, match to the book that we have studied, are provided in the Article of tie-in of attractive Cosmetics but it fails to reference point certain issues that are required in the Article of Association of the company. The information that are not provided in the Articles of Association of guileful Cosmetics are- The address of the persons responsible for the alliances legal service The addresses of the first directors of the company No other public information is provided in the article of association. It overleaps the flesh out of the duties and responsibilities of the officers and the length of their service. There is no information regarding the issuance of the companys transmits. It lacks the matters regarding employment contracts. b) Advantages and disadvantages of the business Advantages- * Se asonal Demand- sly has more sales during winter due to high demand of moisturizers caused by the dry weather. * surround environment needed to produce cosmetic products is very favorable in Bangladesh as we hardly ever formulation constitutional weather conditions. Demand Though the speed class society stick to foreign cosmetic products still the demand for our products is constant as attractives product is popular among rest of the societies and as well as the rural areas, giving the company a wide market. * Labor tacky labour party is abundant in run in our country giving treasured the advantage to lower its cost of toil thus keeping the price of its product low compared to other companys products. * Limited liability- Owners of the business are responsible for the losses only up to the measuring they have invested in it. Perpetual life- cobblers last of one or more owners does not terminate the corporation The advantages of a corporation, according to the book tha t we have studied, are describe above but it does not address some of the advantages mentioned in the book. The advantages those are not include in knavish Cosmetics are- qualification to raise more money for investment- sly Cosmetics is not enlisted in the contrast permutation as it is a private limited company that is why it fuckingnot raise more capital. Size- Size of the company does not puzzle out any role as they cant raise more capital and they also lack resources that could rovide them competitive advantage over their competitors. Ease of possession change- They lack the flexibility of transfer of shares as it is a complex process. Ease of attracting skilful employees- they do not offer any stock options to their employees and this is why they cannot attract many talented employees. Separation of ownership from charge- As the company is a private limited company their management is not separated from the ownership so both the management and owners get to interfere in the decision fashioning process. Disadvantages- Raw Materials- As quality tender materials are not available in our country foxy is highly pendent on import * Double Taxation-Along with the corporation taxes, which are already very high, valued also has to pay the taxes on imports. * immaterial Company Dumping- The dumping of foreign companies to a great extent chance ons the sales of Cutes products and is a threat in the long run. * Dissatisfied Labor-All throughout the turnout process, the labors are abandoned the to the lowest degree precession resulting in dissatisfaction among them. * Utility Crisis- There is always an acute crisis of utility.For electrical energy, to meet the demands, now the company is dependent on private electricity suppliers for which Cute has to pay four folds than official price. * Political Issues- Due to the continuous political unrest, production processes slow down which affect the company very dearly. * Initial cost- To start up a cru de corporation it costs a lot as an initial investment. The disadvantages of a corporation, according to the book that we have studied, are described above but it does not address some of the disadvantages mentioned in the book.The disadvantages those are not included in Cute Cosmetics are- Size- In this case size does not count as a disadvantage as they can adapt to any changes occurred in the market. trouble of termination- There is difficulty of termination but aspects regarding these difficulties are not addressed properly. viable conflict with stockholders and board of directors- The ownership of the company is limited amongst the directors and management so it is least likely that any conflict shall arise. 5. Products of Cute Cosmetics shave Gear bollix mission Products Cute After Shave trim Conditioner Cute Baby Lotion Cute After Shaving Lotion Cute Baby Oil Cute Shaving Brush Cute Baby wash Cute Shaving drub Cute Baby pulverisation Cute Solzar Cute Baby Moisturizin g Pure cream off SoapWinter Products whisker complaint Products Cute Cold choice Cute Amla sensory hair Oil Cute 27 cream off Cute cocoa palm hairs-breadth Oil Cute Krack Cream Cute Shampoo Cute glycerine Cute Anti Dandruff Shampoo Cute Pure Petroleum Jelly herbal Hair Tonic International Vanishing Cream Cute International Cold Cream Cute Petroleum Jelly Cute Lip gel Cute PomadeSkin Care Oral Care Products Cute clean milk Cute Smokers Tooth Paste Cute Sun Shade Cute jelly Tooth Paste Cute Beauty Milk Cute Fluoride Tooth Paste Fragrances Body talcum powder Cute First Lady Cute French Perfumed talcum powder Cute Brutal (for men) Cute International Talc Cute Classic Cute 27 Cute Romance Cute Baby Powder Cute FantasyCute Romance talcum powder Powder Cute Chandan ottar Cute Flower Talc Cute Basra-e-Golap Attar Laboni Powder Cute Attar Cute France & prickly hit Powder 6. Industry Analysis a) Major Competitors The key competitors of Cute Cosmetics are Marico, Kohi noor and jimmy Brothers Bangladesh. A brief discussion on them is given below- Kohinoor Kohinoor Chemical Company Limited Bangladesh (KCCL) was established in 1956. It is a public limited company listed with both the bourses of Bangladesh, Dhaka seam Exchange (DSE) and Chittagong Stock Exchange (CSE). nigh of the products of KCCL are known by fabled brand name Tibet. The other brands that KCCL has are Sandalina, Genstar, Bactrol, Ice-Cool, Fair & Care, Xpert, Heel Guard, and reasonably Master which are equally famous in Bangladesh.To strengthen the marketing of KCCL, their management has rearranged the distribution system and revamped the Research and Development department of KCCL that will deliver quality product in Bangladesh also regional and overseas countries. KCCL has not only emerged into a potent industrial entity but also represents the brand of mass tidy sum. Marico- Marico Bangladesh Limited (MBL) was incorporated in September 6, in 1999. The company is listed in both the stock stand in of Bangladesh, Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). Their factory is situated in Mouchak, Kaliakoir, Gazipur. Their key products are Parachute, Saffola, Hair regulation Hair Dye, Kaya Skin Clinic, New reminiscent Gold, Camelia Beauty Soap. MBLs Products in Pure Coconut oil, Edible Oil, Hair care and Skin Care tip over out to more than 500,000 outlets in Bangladesh.MBL touches the lives of 1 out of every 3 East Pakistani through its portfolio of brands such as Parachute, Saffola, Hair Code, Aromatic, Camelia and Beliphool to name a few, most of which enjoy leadership positions (No. 1 in coconut oil segment), with significant market shares in respective categories. They believe in transforming the lives of our stakeholders be it our consumers, members, associates or shareholders, by help them maximize their true potential. This truly articulates the Mariconian olfactory modality to be more. every day. Lever Brothers Bangladesh - Unilever started its onshore operations in Bangladesh in 1964 when its soap factory was set up at Chittagong.Unilever Bangladesh is market leader in 7 of the 8 categories it operates in, with 16 brands spanning crossways Home and Personal Care and Foods. Their operation provides employment to over 10,000 people instantaneously and indirectly through its dedicated suppliers, distributors and service providers. 99. 8% of Unilever Bangladesh employees are locals and they also have a large number of Company employees working abroad in other Unilever companies as expatriates. The renowned products of Lever Brothers Bangladesh are- Pepsodent, Knorr, Wheel, index finger White, Vaseline, Lux, Pureit, Fair & Lovely, Close up , Dove, Surf Excel, Sunsilk, Ponds, Vim, Rexona, Lifebuoy, Taaza, Clear etc.Lever Brothers is also very well reputed brand name in our country and they have a mass coverage among the people with their products. b) uprise analysis Strength and weakness are intern al factors caused by the company itself whereas the opportunity and threats are external factors caused by the market and competitors. Strength- * They have very modern machinery and ensured highest quality products with technical co-operation of the qualified chemists of the company and experts of the renowned foreign cosmetics products developers. * It has become a well known brand for the people of our country. * It in general focuses on the lower income take aim people who can afford to buy the products and majority of the people of Bangladesh are lower income level people. It can afford cheap labor and can manufacture products at a very low cost. Weakness- * For huffy materials they are dependent on the USA and European countries * As they have to import raw materials they have pay huge amount of tax on the imported goods therein increasing the overall tax liability of the company. * Impact of labor unions and strikes called by labors. Opportunity- * As it is a well known brand and has a market demand it can introduce new product lines and the people will embrace them. * They also export their products and are renowned internationally so they can introduce new products in foreign countries and the people will also embrace their products. If they can get more good machineries, they will be able to manufacture variety of products and gain a competitive advantage. Threats- * They have many competitors who have also become well reputed and have captured a great market share. * The equivalent products that are being produced by the competitors make consumers compare among available alternatives and they tend to consider the one with lower price. * If any new entrants come into the market with more advanced technology then they will get a competitive advantage over Cute Cosmetics. * The political unrest all over the country is a great threat for the company. * A great threat for Cute Cosmetics is dumping of the goods by the foreign companies to grasp th e local market. 7. ConclusionCute Cosmetics has been established for a very long time, in fact the idea of manufacturing cosmetic locally was introduced by them. By providing a wide array of products to the mass people they have become one of the pioneers of their line of service. The competitors now have gained a great market share by their different types of product and services and Cute is veneer a huge competition against them. Even though Cute has many advantages such as being one of the oldest companies being formed still they have to face uncertainties in case of being the market leader. Even though the disadvantages are measly still they have certain impacts on the overall performance of the company.The information that we have collected about Cute Cosmetics has wanting regarding the promotional campaign and activities which hinder their growth. excessively the threats that we have detected can have a negative impact over the company. We suggest that Cute should now focus more on the promotional activities so that they can grasp majority of the market. They should ensure more resources as well as more technologically sound machineries that will help them build competitive advantage. contempt the drawbacks they have maintained their reputation and standards and survived for a very long time in the ever changing market which is sooner impressive. However to become the market leader they need to bring in some changes which will ensure their leadership in the market for long run.