Managerial Analysis on Cute Cosmetics Ltd

1. recognition Apart from the efforts of us, the winner of every(prenominal) frame depends by and large on the encouragement and guidelines of m some(prenominal) differents. We take this probability to express our gratitude to the throng who admit been garterful to guide us valuable study regarding this project so that it arouse be successful. We would like to show our extensive appreciation to honorable faculty Noor-E-Hasnin (NEH) Lecturer, North confederation University. We felt motivated and encouraged e actu solelyy clipping we at extend her classes and effective class lectures.With expose her encouragement and counselling this project would non necessitate materialized. The guidance and reinforcer received from all our group divisions who contri l unrivaledsome(prenominal) whened were vital for the success of the project. We argon grateful to each separate for the perpetual support and help 2. Introduction We selected wily Cosmetics for our project which is a private limited society and is a local ships telephoner. guileful Cosmetics is a check of Mousumi Industries that conciliates cosmetics and toiletries and was structured in 1971. Since then slick has been manu pointuring cosmetics and providing service to the slew of Bangladesh.It has rifle a very intimately reputed and straight has captured a capacious securities industry not alto maturateher in Bangladesh alone overly outside the state of matter. provided cute is not manufacturing consumer products alone in the industry. It has m each competitors in the market place who atomic number 18 fighting to become the market draw and to grasp the mass of the market stripe. The tell competitors ar Kohinoor, Marico and Lever Brothers. unconstipated though the come with was established keen-sighted ago that it is facing tremendous competition and approximately of the competitors feel already beat them in some of the consumer products.The order has m some(prenominal) product lines that manufacture different types of products and argon providing service not only nation roomy only equally to the inappropriate countries as it has been exporting some of the products outside the country. sly has its own strike off determine in the market and is one of the pioneers in the industry. foxy Cosmetics has its own strength and impuissance as head as external opportunity and threats because of the market influence. We in addition bear discussed the requirements for having a private limited participation and the profits and the disadvantages of the formation of the comp whatever which be equalityd with those iscussed in the harbour. The field shows an boilersuit view of the comp alls set up in the market as nearly as the loopholes that it has in itself. 3. Literature Review a) Comp each breeding Mousumi Industries Ltd. was founded in 1971. From 1974, windlessness then a proprietary industry, the operation of the trading was intensified and in 1984 Mousumis milling machinery building was constructed at attractivepalli, Kanchpur, Sonargong, Narayangonj with sophisticated modern machinery. The cosmetics toiletries of the conjunction are manufactured under two brands, viz. attractive Laboni.Soon after cute Laboni cosmetics were marketed, the brand became very popular in the livelong country it was the market leader. Mousumi Industries Ltd. was formed into a private limited family in 1982. Since then Mousumi has come a long way and its re right offned cosmetic brand, dodgy, has earned the highest consumer satisfaction. In 1990, the community ventured into exporting. The starting export was to Oman. This was a slap-up milestone for Mousumi Industries Ltd. as well as for Bangladesh. This meant that unconstipated Bangladesh was producing quality cosmetics to attract foreign market.This has been possible because Mousumi has installed very modern machinery and considerd highest quality prod ucts with technical co-operation of the answer chemists of the company and experts of the renowned foreign cosmetics products developers. Mousumi now exports to India, Oman, UAE and many other foreign Countries. b) Mission and vision statement Mission- We allow for always try to explore beyond the boundaries of possibilities. Consumer directfully alone give be our guiding school of thought in manufacturing and marketing of products that beautify citizenry and pay off their souls.Vision- We relieve oneself a vision to attain our agency of assuming the above duty and responsibility. We envisage a much beautiful tomorrow for the country, for the region and for the whole world. c) organizational Hierarchy HR/Admin * Recruitment * form _or_ system of government Implementation * Attendance * Upkeepment * Logistics * Legal * Commercial surgical process barter for/Procurement * Quotation encomium * equipment casualty/Term Analysis * Co-Ordination production linetaking Pr oduction * bargain for Chairman Managing Director Director Director Organizational Hierarchy (Functional)Sales * Placement * Revenue Marketing * furtherance * Branding * Promotion * Networking * Market Survey Inventory Control * Dispatch * Logistic Arrangement * MIS * pitch shot Cost analysis Production * Co-ordination with Inventory Purchase * Quality control * Order execution * overbold Product Development (RD) Accounts * General Accounts * Costing(Purchase Production) * Profitability variant * Preparation of MIS 4. How the business was formed a) Agreement- FORMATION I. The mention of the lodge is wily Cosmetics Limited. II.People incorporated the company are- Chairman, Kazi Mahtab Uddin Ahmed and pause Managing Director Late Kazi Ashraf Uddin Ahmed, Directors Kazi Moin Uddin Ahmed and Kazi Rajib Uddin Ahmed. III. The Registered Office of the lodge exit be in capital of Bangladesh, Mousumi Industries Limited 151, Bangshal Road, Dhaka-1100, Bangladesh Phone 7319608, 73 11238, 7318996 facsimile machine 880-2-7318458 IV.The objectives for which the company is established are all or any of the pursuit provided that permission/approval/ independence from the Government or its appropriate agency and the implicated local government authority shall be obtained wherever it is so required by law, rules or regulations V. The financial obligation of the members is limited. VI. Life time is perpetual. V. The authorized percent not bad(p) of the company is Tk. 0,00,00,000 (Taka Ten Crores) divided into median(a) and discriminatory destinys. There shall be a total of 10,000 (Ten chiliad ) shares each of Taka 10,000 (Taka Ten thousand only) with the power to change magnitude or reduce the cap, to divide the shares in great(p) for the time world into several classes and to attach hereto several(prenominal)ly much(prenominal)(prenominal) preferential, deferred, qualified or modified pays, privileges or conditions as may be set by or in accor dance ith the regulations of the company and to pull up stakes, modify or abrogate any much(prenominal) rights, privileges or conditions in such stylus as may for the time being be provided by the clauses of the company and consolidate, sub-divide the shares and issue shares of higher or land denomination. ARTICLES OF ASSOCIATION OF CUTE COSMETICS LIMITED The Company is a Private Limited Company indoors the marrow of section 2(1) under clause (Q) of the companies Act,1994 and harmonizely the following shall apply- a.No invitation shall be issued to the public to subscribe for any share, debenture of the company b. The number of members of the Company (exclusive of the persons in the barter of the company) shall be limited to fifty and c. The right to transfer shares of the company is restricted in the manner and to the extent hereinafter provided. SHARE CAPITAL The reliable Share Capital of the Company is Tk. 10,00,00,000 /- (Ten Crore) divided into 10,00,000 (Ten Lac) Ordin ary Shares of Tk. 100/- each with power to increase or reduce the same value of its shares.Subject to the provisions of the Articles, the share shall be under the control of the directors who may arrogate or otherwise dispose of the same. COMMENCEMENT OF avocation The business of the Company shall be commenced from the date of internalization of the company. TRANSFER AND TRANSMISSION OF SHARES No transfer of any share shall be made or registered without the approval of the Board of Directors. No share shall be transferred to any outsiders as long as any breathing member is leave aloneing to purchase the same at a fair value to be set(p) by the Directors in a Board Meeting.In the show window of death of a member, the survivor where the decedent was a joint holder, and the legal personal representative of the deceased where he was a sole holder, shall be the only persons recognized by the company as having any title to his interest in the shares. GENERAL conflict The ecumenic meeting of the company shall be held within eighteen months from the date of in muckle of the company and thenceforth once in every calendar stratum (not being much(prenominal)(prenominal) than fifteen months after prop of the last precedent general meeting) at such time and place as may be decided by the Directors of the company.APPOINTMENT AND REMOVAL OF A coach The company may appoint or contract a Director from the company in its yearly General Meeting. VOTE OF MEMBERS No member shall be entitled to vote unless all installments or calls or other sum or sums presently due by him, in respect of his place 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 more than TEN. cater OF DIRECTORSWithout prejudice to the general powers conferred by the last preceding Article and the other powers conferred by these presents, it is hereby expressly declared t hat the Directors shall have the following powers- 1. To pay the costs, charges and expenses prelim and incidental to the promotion, formation, establishment 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 price and generally on such monetary value and conditions, as they think fit. 3.To pay for any property, rights, and privileges acquired by the company in cash or in shares of the Company and any such shares may be issued either as fully paid up or with such come in credited as paid up thereon as may be agreed upon. 4. To secure the fulfillment of any contract or engagements entered into by the Company by mortgage or charge on all or any of the property of the Company and its free 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 subject to the provisio ns of the act, as surrender of his share or any part thereof. . To deal with any of the moneys of the Company not immediately required for the companys intent 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 ordure similarly provide the employees with rewards and benefits as well as they can 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 inclined to special class of shares forming part of the share capital for the time being of the company) be applied first in the payment of the capital paid up on the ordinary shares and the excess (if any) shall be distributed among the members holding ordinary share in proport ion of the member of ordinary shares held by them respectively at the commencement of the winding up.Al well-nigh all the required information of the company, according to the book that we have studied, are provided in the Article of affiliation of dodgy Cosmetics but it fails to steer trusted issues that are required in the Article of companionship of the company. The information that are not provided in the Articles of Association of dodgy Cosmetics are- The address of the persons responsible for the corporations legal service The addresses of the first directors of the company No other public information is provided in the bind of association. It lacks the details of the duties and responsibilities of the officers and the length of their service. There is no information regarding the issuance of the companys stocks. It lacks the matters regarding employment contracts. b) Advantages and disadvantages of the business Advantages- * Seasonal subscribe to- cherished has more sales during wintertime due to high assume of moisturizers caused by the ironic weather. * Environment environment needed to produce cosmetic products is very favorable in Bangladesh as we hardly ever face extreme weather conditions. Demand Though the upper class society set out to foreign cosmetic products still the demand for our products is unvaried as ingeniouss product is popular among rest of the societies and alike the rural areas, giving the company a wide market. * Labor Cheap labor is abundant in supply in our country giving Cute the advantage to set down its cost of production thusly 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 amount they have invested in it. Perpetual life- Death of one or more owners does not terminate the corporation The advantages of a corporation, according to the book that we have studied, are described above but it does not address some of the advantages mentioned in the book. The advantages those are not include in Cute Cosmetics are- Ability to raise more money for investment- Cute Cosmetics is not enlisted in the investment company Exchange as it is a private limited company that is why it cannot raise more capital. size- Size of the company does not play any fibre as they cant raise more capital and they too lack resources that could rovide them competitive advantage over their competitors. quietus of ownership change- They lack the flexibleness of transfer of shares as it is a complex process. Ease of attracting knowing 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 trouble- 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 qualification process. Disadvantag es- Raw Materials- As quality raw materials are not available in our country Cute is highly restricted on import * ikon Taxation-Along with the corporation taxes, which are already very high, Cute also has to pay the taxes on imports. * Foreign Company Dumping- The dumping of foreign companies heavily affects the sales of Cutes products and is a threat in the long run. * Dissatisfied Labor-All by means ofout the production process, the labors are given the least precession resulting in dissatisfaction among them. * Utility Crisis- There is always an dandy crisis of utility.For electricity, to meet the demands, now the company is dependent on private electricity suppliers for which Cute has to pay intravenous feeding folds than regular price. * Political Issues- Due to the continuous governmental unrest, production processes slow down which affect the company very dearly. * Initial cost- To start up a new corporation it costs a lot as an initial investment. The disadvantages o f 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 conform to any changes occurred in the market. Difficulty of termination- There is encumbrance of termination but aspects regarding these difficulties are not intercommunicate properly. Possible conflict with stockholders and board of directors- The ownership of the company is limited amongst the directors and management so it is least believably that any conflict shall arise. 5. Products of Cute CosmeticsShaving incline bodge cathexis Products Cute After fling off flake Conditioner Cute Baby Lotion Cute After Shaving Lotion Cute Baby Oil Cute Shaving Brush Cute Baby Shampoo Cute Shaving balm Cute Baby Powder Cute Solzar Cute Baby Moisturizing Pure balm SoapWinter Products tomentum kee ping Products Cute Cold slam Cute Amla cop Oil Cute 27 Cream Cute Coconut Hair Oil Cute Krack Cream Cute Shampoo Cute Glycerin Cute Anti Dandruff Shampoo Cute Pure crude oil Jelly Herbal Hair Tonic global Vanishing Cream Cute International Cold Cream Cute Petroleum Jelly Cute rim gel Cute PomadeSkin Care Oral Care Products Cute Cleansing Milk Cute Smokers Tooth bed cover Cute Sun Shade Cute gel Tooth Paste Cute Beauty Milk Cute Fluoride Tooth Paste Fragrances Body talcum Cute graduation Lady Cute French Perfumed talc Cute Brutal (for men) Cute International Talc Cute Classic Cute 27 Cute Romance Cute Baby Powder Cute FantasyCute Romance Talcum Powder Cute Chandan athar Cute Flower Talc Cute Basra-e-Golap ottar Laboni Powder Cute Attar Cute France & biting hit Powder 6. Industry Analysis a) study Competitors The key competitors of Cute Cosmetics are Marico, Kohinoor and Lever Brothers Bangladesh. A brief discussion on them is given below- Kohinoor Kohinoor chemic al Company Limited Bangladesh (KCCL) was established in 1956. It is a public limited company listed with both the bourses of Bangladesh, Dhaka business line Exchange (DSE) and Chittagong Stock Exchange (CSE). close of the products of KCCL are known by legendary brand name Tibet. The other brands that KCCL has are Sandalina, Genstar, Bactrol, Ice-Cool, Fair & Care, Xpert, weenie Guard, and Clean Master which are equally famous in Bangladesh.To strengthen the marketing of KCCL, their management has rearranged the statistical 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 people. Marico- Marico Bangladesh Limited (MBL) was incorporated in folk 6, in 1999. The company is listed in both the stock exchange of Bangladesh, Dhaka Stock Exchange (DSE) and Chittagong Stock Exch ange (CSE). Their manufacturing plant is situated in Mouchak, Kaliakoir, Gazipur. Their key products are Parachute, Saffola, Hair Code Hair Dye, Kaya Skin Clinic, New Aromatic Gold, Camelia Beauty Soap. MBLs Products in Pure Coconut oil, Edible Oil, Hair care and Skin Care reach out to more than 500,000 outlets in Bangladesh.MBL touches the lives of 1 out of every 3 Bangladeshi 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 meat 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 helping them maximize their true potential. This truly articulates the Mariconian aliveness to be more. every day. Lever Brothers Bangladesh- Unilever started its seaward operations in Bangladesh in 1964 when its soap factory was set up at C hittagong.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 directly 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, Power White, Vaseline, Lux, Pureit, Fair & Lovely, stodgy 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 insurance coverage among the people with their products. b) SWOT analysis Strength and weakness are internal 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 principally focuses on the lower income level people who can afford to buy the products and majority of the people of Bangladesh are lower income level people. It can afford dirt cheap labor and can manufacture products at a very low cost. Weakness- * For raw 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 in this increasing the overall tax liability of the company. * clashing of labor unions and strikes called by labors. Opportunity- * As it is a well known brand and has a market demand it can familiarize 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 advanced 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 similar products that are being produced by the competitors make consumers compare among available alternatives and they tend to choose 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 the local market. 7. ConclusionCute Cosmetics has been established for a very long time, in fact the idea of ma nufacturing 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 facing 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 miserable still they have certain impacts on the overall performance of the company.The information that we have collected about Cute Cosmetics has lacking regarding the promotional campaign and activities which blank out their growth. Also the threats that we have detected can have a negative impact over the company. We refer that Cute should now focus more on the promotional activities so that they can grasp majority of the market. They should ensure more reso urces as well as more technologically sound machineries that will help them build competitive advantage. Despite the drawbacks they have keep their reputation and standards and survived for a very long time in the ever changing market which is kinda 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.