Managerial Analysis on Cute Cosmetics Ltd

1. Acknowledgement Apart from the efforts of us, the success of whatsoever come out depends mostly on the encouragement and guidelines of m whatever a nonher(prenominal)s. We take this opportunity to express our gratitude to the hoi polloi who take aim been helpful to give us valuable in g e very(prenominal)placening body regarding this project so that it discharge be successful. We would like to show our corkingest range to honorable faculty Noor-E-Hasnin (NEH) Lecturer, North south University. We felt motivated and encourage every succession we at flow her classes and effective class lectures.Without her encouragement and focusing this project would non do materialized. The guidance and support received from simply our group members who contributed were vital for the success of the project. We ar grateful to for each cardinal other for the constant support and help 2. Introduction We selected clever Cosmetics for our project which is a private contain order an d is a local anaesthetic social club. slick Cosmetics is a brand of Mou toti Industries that manufactures cosmetics and toiletries and was incorporated in 1971. Since hence tricksy has been manufacturing cosmetics and providing value to the community of Bangladesh.It has become a very well reputed and now has captured a big merchandise non only in Bangladesh but as well as exterior the country. But cute is not manufacturing consumer products al genius in the industry. It has mevery competitors in the commercialise who argon fighting to become the marketplace leader and to win the majority of the market section. The key competitors atomic number 18 Kohinoor, Marico and Lever Brothers. Even though the attach to was launch recollective ago but it is facing tremendous competition and or so(a) of the competitors give already beat them in some of the consumer products.The bon ton has mevery product lines that manufacture different types of products and atomic numb er 18 providing religious service not only nation wide but similarly to the orthogonal countries as it has been exporting some of the products outside the country. treasured has its own brand see to it in the market and is one of the pioneers in the industry. crafty Cosmetics has its own say-so and weakness as well as external opportunity and threats because of the market influence. We in addition deport discussed the requirements for having a private limited comp whatever and the advantages and the disadvantages of the formation of the comp each which ar compared with those iscussed in the maintain. The report shows an over both in all view of the partnerships position in the market as well as the loopholes that it has in itself. 3. Literature Review a) fellowship Information Mousumi Industries Ltd. was founded in 1971. From 1974, serene then a proprietorship industry, the operation of the business was intensified and in 1984 Mousumis factory building was constructe d at slickpalli, Kanchpur, Sonargong, Narayangonj with sophisticated modern machinery. The cosmetics toiletries of the comp any(prenominal) are manufactured chthonic two brands, chance uponly crafty Laboni.Soon after knavish Laboni cosmetics were marketed, the brand became very customary in the whole country it was the market leader. Mousumi Industries Ltd. was form into a private limited company in 1982. Since then Mousumi has come a long way and its famous cosmetic brand, Cute, has clear the highest consumer satisfaction. In 1990, the company ventured into exporting. The first export was to Oman. This was a great milepost for Mousumi Industries Ltd. as well as for Bangladesh. This meant that even Bangladesh was producing fictional character cosmetics to attract immaterial market.This has been possible because Mousumi has installed very modern machinery and ensured highest whole tone products with technical co-operation of the qualified chemists of the company and expe rts of the renowned foreign cosmetics products developers. Mousumi now exports to India, Oman, UAE and many other foreign Countries. b) relegation and visual modality statement Mission- We will always try to explore beyond the boundaries of possibilities. Consumer needs alone will be our guiding philosophy in manufacturing and marketing of products that beautify state and satisfy their souls.Vision- We have a vision to attain our mission 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 power structure HR/Admin * Recruitment * Policy Implementation * Attendance * Upkeepment * Logistics * Legal * commercialized Operation Purchase/Procurement * Quotation approval * Price/ call digest * Co-Ordination livestock harvest-festivalion * Purchase Chairman Managing theater director Director Director Organizational Hierarchy (Functional)Sales * Placement * Revenue Marketing * promotional material * Branding * Promotion * Net operative * Market Survey Inventory Control * shipment * Logistic Arrangement * MIS * Delivery Cost analysis Production * Co-ordination with Inventory Purchase * Quality control * Order execution * New Product phylogenesis (RD) Accounts * General Accounts * Costing(Purchase Production) * Profitability Variance * Preparation of MIS 4. How the business was formed a) Agreement- FORMATION I. The name of the Company is Cute Cosmetics Limited. II.People incorporated the company are- Chairman, Kazi Mahtab Uddin Ahmed and stop Managing Director Late Kazi Ashraf Uddin Ahmed, Directors Kazi Moin Uddin Ahmed and Kazi Rajib Uddin Ahmed. III. The Registered Office of the Company will be in capital of Bangladesh, Mousumi Industries Limited 151, Bangshal Road, Dhaka-1100, Bangladesh Phone 7319608, 7311238, 7318996 Fax 880-2-7318458 IV.The objectives for which the company is established are all or any of the following provided that permission /approval/license from the political sympathies or its appropriate agency and the concerned local government pronouncement shall be obtained wherever it is so required by law, rules or regulations V. The obligation of the members is limited. VI. Life time is perpetual. V. The authorized percent detonating device of the company is Tk. 0,00,00,000 (Taka decennary Crores) divided into Ordinary and preferential shares. There shall be a list of 10,000 (Ten thousand ) shares each of Taka 10,000 (Taka Ten thousand only) with the power to increase or reduce the capital, to divide the shares in capital for the time being into some(prenominal) classes and to attach hereto respectively much(prenominal) preferential, deferred, qualified or finicky rights, privileges or conditions as may be determined by or in accordance ith the regulations of the company and to vary, modify or abrogate any such(prenominal) rights, privileges or conditions in such manner as may for the time being be provided by the Articles of the company and consolidate, sub-divide the shares and issue shares of higher(prenominal) or commence denomination. ARTICLES OF ASSOCIATION OF CUTE COSMETICS LIMITED The Company is a Private Limited Company within the meaning of section 2(1) under clause (Q) of the companies Act,1994 and jibely the following shall apply- a.No invitation shall be issued to the public to have for any share, debenture of the company b. The number of members of the Company (exclusive of the persons in the trade of the company) shall be limited to fifty and c. The right to transfer shares of the company is dependent in the manner and to the extent hereinafter provided. SHARE CAPITAL The authoritative Share Capital of the Company is Tk. 10,00,00,000 /- (Ten Crore) divided into 10,00,000 (Ten Lac) Ordinary Shares of Tk. 100/- each with power to increase or reduce the same value of its shares.Subject to the aliment of the Articles, the share shall be under the control of the directors who may allot or otherwise dispose of the same. COMMENCEMENT OF BUSINESS The business of the Company shall be commenced from the date of incorporation 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 existing member is willing to barter for the same at a fair value to be determined by the Directors in a Board Meeting.In the case of death of a member, the survivor where the deceased 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 MEETING The command encounter of the company shall be held within eighteen months from the date of incorporation of the company and thereafter once in every calendar stratum (not being more than fifteen months afte r place of the last antecede general meeting) at such time and place as may be decided by the Directors of the company.APPOINTMENT AND REMOVAL OF A DIRECTOR The company may appoint or remove a Director from the company in its Annual General Meeting. VOTE OF MEMBERS No member shall be entitled to vote unless all installments or calls or other sum or sums presently payable by him, in respect of his place of shares in the company has been pay. 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. POWER OF DIRECTORSWithout prejudice to the general powers conferred by the last forward Article and the other powers conferred by these presents, it is hereby expressly declared that the Directors shall have the following powers- 1. To pay the be, charges and expenses preliminary and incidental to the promotion, formation, establishment and registration of the Company. 2. To purchase or otherwi se acquire for the Company any property, rights or privileges that the Company is authorized to acquire at such price and generally on such terms and conditions, as they rally 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 compensable up or with such amount credited as paid up thereon as may be agreed upon. 4. To detain 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 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 subject 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 required for the companys purpose in or upon such investments or securities (not being share s in this company) and in such manner as they may think fit, and from time to time to vary or realize such investments. They provide also provide the employees with rewards and benefits as well as they sens contribute establishment of schools, recreation centers and hospitals which will, the opinion of the Directors, tend to increase the theme 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 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 proportion of the member of ordinary shares held by them respectively at the commencement of the winding up.Almost all the required development of the company, according to the book that we have studied, are provided in the Article of affiliation of Cute Cosmetics but it fails to extension certain issues that are required in the Article of experience of the company. The information that are not provided in the Articles of Association of Cute 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 article 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 matter of the companys stocks. It lacks the matters regarding employment contracts. b) Advantages and disadvantages of the business Advantages- * Seasonal Demand- Cute has more sales during winter due to high demand of moisturizers caused by the modify survive. * Environment environment needed to produce cosmetic products is very plausive in Bangladesh as we hardly ever face extreme weather conditions. Demand Th ough the upper class society stick to foreign cosmetic products still the demand for our products is constant as Cutes product is popular among rest of the societies and also the rural areas, giving the company a wide market. * Labor Cheap persistence is abundant in supply in our country giving Cute the advantage to lower its cost of outturn 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 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 included in Cute Cosmetics are- Ability to compound more money for investment- Cute Cosmetics is not enlisted in the Stock 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 role as they cant raise more capital and they also lack resources that could rovide them warlike advantage over their competitors. Ease of self-will change- They lack the flexibility of transfer of shares as it is a complex process. Ease of attracting talented 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 guidance- As the company is a private limited company their worry is not separated from the ownership so both the management and owners demand to interfere in the decision making process. Disadvantages- Raw Materials- As quality warm materials are not available in our country Cute is highly dependent on import * Double Taxation-Along with the corporation taskes, which are already very high, Cute also has to pay the taxes on imports. * opposed Company Dumping- The dumping of foreign com panies heavily affects the sales of Cutes products and is a threat in the long run. * Dissatisfied Labor-All throughout the production process, the labors are wedded the least priority resulting in dissatisfaction among them. * Utility Crisis- There is always an knifelike 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 regular price. * Political Issues- Due to the never-ending political unrest, production processes slow down which affect the company very dearly. * Initial cost- To start up a newly 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 c hanges occurred in the market. obstruction of termination- There is difficulty of termination but aspects regarding these difficulties are not communicate 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 likely that any conflict shall arise. 5. Products of Cute Cosmetics neaten Gear bollix up Care Products Cute After Shave flake Conditioner Cute cosset practical application Cute After Shaving Lotion Cute Baby anele Cute Shaving Brush Cute Baby Shampoo Cute Shaving Cream Cute Baby Powder Cute Solzar Cute Baby Moisturizing sensitive Cream SoapWinter Products hairs-breadth Care Products Cute cold-blooded Cream Cute Amla Hair petroleum Cute 27 Cream Cute Coconut Hair Oil Cute Krack Cream Cute Shampoo Cute Glycerin Cute Anti Dandruff Shampoo Cute Pure Petroleum Jelly herbal tea Hair Tonic International Vanishing Cream Cute International Cold Cream Cute Petroleum Jelly Cute Lip gelatin Cute Pomade peel Care Oral Care Products Cute Cleansing draw Cute Smokers Tooth Paste Cute Sun Shade Cute mousse Tooth Paste Cute Beauty Milk Cute Fluoride Tooth Paste Fragrances clay Talc Cute First 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 attar 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, Kohinoor and Lever Brothers Bangladesh. A apprise 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 Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). Most of the products of KCCL are cognize by legendary brand name Tibet . The other brands that KCCL has are Sandalina, Genstar, Bactrol, Ice-Cool, fair & Care, Xpert, Heel Guard, and Clean 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 passel. Marico- Marico Bangladesh Limited (MBL) was incorporated in September 6, in 1999. The company is listed in both the stock transposition of Bangladesh, Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE). Their factory is dictated 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 devote out to more t han 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 cocoa palm 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 in truth articulates the Mariconian spirit to be more. every day. Lever Brothers Bangladesh- Unilever started its onshore trading 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 crosswise Home and Personal Care and Foods. Their operation provides employment to over 10,000 people directly and indirectly through its dedicated suppliers, distributors an d 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, position 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) SWOT analysis authority 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 cognize brand for the people of our country. * It mainly 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 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 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 lose more advanced machineries, they will be able to manufacture renewal 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 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 facing a huge compe tition 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 negligible still they have certain impacts on the overall performance of the company.The information that we have collected about Cute Cosmetics has scatty regarding the promotional campaign and activities which hinder their growth. Also 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. Despite the drawbacks they have maintained their reputation and standards and survived for a very long time in the ever changing market which is quite impressive. except to become the market leader they n eed to bring in some changes which will ensure their leadership in the market for long run.