History, Growth and development:

BSRM is the first steel re-rolling mills in Bangladesh which started their first journey at 1952 in

Pakistan period. Taherali Africawala and Akberali Africawala established it as the first re-rolling

steel mills at Nasirabad in Chittagong (About us, n.d.). BSRM emerged as a first steel industry in

our country which is ISO 9001:2000 certified. In 1984 they first brought high strength twisted

bars in our country. BSRM emerged as a large billet making plant in 1996 and later they

introduced BISCO as a second billet making plan began their production in 2010. They produced

actually 250000 tons per annum by this two plant. BSRM introduced their new product “BSRM

MAXIMA” in 2015 and raised their capacity from 120000 MT from 450000 MT per annum

(About us, n.d.).

BSRM is one of the first choices in the steel industry of Bangladesh for national infrastructure

like roads, bridges, building etc. They introduced BSRM Xtreme which was first recognized

graded steel. Their net profit after tax became double from 574.08 million to 1068.23 million in

2010. But a coincidence happened in 2011 and 2012 that was their net profit after tax decreased

and it increased in 2013 and 2014 to BDT 1,394.55 million and 1,239.22 million (The Largest

Steel Industry in Bangladesh, 2016)

They create a lot of working opportunity for the Bangladeshi people. Currently, 2000 people are

working in their industry who are highly skilled and plays a significant role in the steel industry

of Bangladesh They strictly follow employee retention policy to create a future leader for their

company. By proper training and development process, they always try to achieve excellence in

every step of their operation and they also try to set up a learning culture that confirms their

employee’s productivity. (The Largest Steel Industry in Bangladesh, 2016).

Internal Environment Analysis:

Resources: BSRM Steel Mills have two different resources which is much similar to other

organizations. They have both tangible resources and intangible resources.

Tangible Resources:

As indicated by the monetary record of the yearly report of BSRM, in 2016, their tangible

resources are worth of above BDT 9 billion (Summary-of-Balance-Sheet, 2016). They had

assortments of properties, for example, structures, control plants, steel producing plants, gear,

and apparatuses. Presently, BSRM have thirteen workplaces in Bangladesh. They additionally

have 2 workplaces in abroad which are arranged in India. They have one processing plant

building which is at Zorwarganj in Chittagong. It covers two hundred thousand square feet

territory. The workplace is very much outfitted with a few air division units, fundamental oxygen

heater plants, impact heater, coal washing plants, DRI plants, persistent caster volutes, electric

circular segment heaters, scoop heaters, vacuum degassing station. These all cover two-third of

BSRM's aggregate settled resources.

Intangible Resources:

BSRM have additionally some intangible assets which are hard for different organizations in

their industry to duplicate them even subsequent to knowing their tangible assets. They are great

at sourcing crude material is one of their best intangible assets. Other substantial assets are

connected with long understanding, the best brand image in Bangladesh and have the most piece

of the overall industry in Bangladesh with regards to even now process ventures, specialized
capacities. Their constant creation of value items earned them a gigantic place in the brand

image. They additionally have a ubiquity for good after sale administrations which is uncommon

in such a variety of nearby organizations. Every one of these skills has aggregately made

BSRM's notoriety go skimming past finished the normal business standard.

Capabilities:

BSRM Steel Mills has more than two thousand representatives working. They are continually

cooperating to use the greater part of their assets by incorporating those and get the most

astounding yield from those. Keeping in mind the end goal is to do as such, they generally take

after a compelling administration and creation process. BSRM is also cautious with regards to

being the representative. They take worker and give them appropriate preparing framework,

endeavor to build up their gifts. Individuals who work at BSRM end up noticeably experienced.

They likewise turn out to be better qualified at taking care of circumstances. They take powerful

choices such a path along these lines, to the point that it at last outcomes in great efficiency and

quality in the circumstances to come in future. BSRM likewise responds immediately when they

see the focused condition is evolving. They are constantly reliable on one segment, that is their

change of value. They keep themselves refreshed with most recent advancements and take

legitimate measures. This assistance them getting to be noticeably testing towards evolving

business. They additionally have built up a decent correspondence between their building

division and their administration group. This encourages them to permit the most elevated usage

of substantial and immaterial assets. Through imaginative thoughts and streamlined coordination,

they accomplish change in each progression.

The vision of BSRM aggregate is as per the following: to keep up their authority position in the

steel business by creating the best quality steel items, persistently upgrading consumer loyalty

and turning into a dependable business accomplice of their clients and providers. They

additionally need to ensure the enthusiasm of their investors through a feasible development and

esteem creation, embracing moral business hones. The organization esteems quality, unwavering

quality, put stock in, initiative, consumer loyalty, and social obligations, and they need to

continue proceeding with every one of these parts with the biggest achievement.

Industry Analysis

BSRM (Bangladesh Steel Re-rolling Mills) is in Steel Manufacturing Industry of Bangladesh.

Steel Industry in this our country is established and is emerging as one of the major industrial

sectors. Though BSRM steel has been established in 1952, the steel industry did not have a

glorious time until 1990. After 1990 the revolution for the building the modern infrastructure

began in this country and this is when the demand for the steel has started increasing. As of 2012,

there are 400 steel mills in the country across different cities.

Today there are lots of companies operating in this industry but there are only few who have

created a brand image for them. Among them, BSRM, RSRM, KSRM, Rahim Steel, Anwar Steel

and AK Steel are major players in this industry. The highest steel producing company is the

BSRM, who meets 26% of the market demand. There are few categories of steel that this

industry manufacture like g60, g80, g500. But today the g500 is slowly dominating the market as

it is of better quality and more cost saving. (Steel industry in Bangladesh, n,d)
Steel industry is one of the major contributors to the economy of Bangladesh and this industry is

growing as demand is increasing due to the infrastructure and real-estate development in this

country. (Bangladesh steel sector,2015)

Porter's Competitive Forces Model

Competitive rivalry within the industry: According to the 2014's data, there are 3 major players in

the steel industry in this country – BSRM, KSRM and AKS. Together they meet more than 50%

of the market demand. And the rest of the products are supplied by the other medium and small

size companies (Big Steel Companies displace small ones, 2014). Besides facing competition

from the big players in pricing and costing, the decreasing level of demand is creating extra sets

of problems for the small companies to survive in the market. In a way, the market is becoming

monopolistic as most of the construction companies go only to the market leader to buy steels.

So BSRM is now facing a bit of competition from the KSRM and AKS, so they need to evolve

with the market to maintain its dominant position in the market.

Threat of new entry: To enter in this industry one has to bear a huge initial investment to build

steel mills. Also, the market is already dominated by the 3 big players. So, it would not be

profitable for a new company to enter in this industry. Even the existing smaller companies are

trying to leave this industry. So, it is very unlike that BSRM steel is going to face competition

from the new players in the market.

Threat of Substitution: There are lots of company in this industry who produces the almost exact

same product. Also, there is low switching cost. Hence the customer can change from one

company to other easily. So, the threat of substitution is significant for BSRM in the industry.
Bargaining power of Buyers: Construction companies in this country often goes with the steel

making company who has a good brand image as they think it provides better quality. And only a

few companies have the good image. And the price and quality in the market do vary

significantly. Therefore, buyers bargaining power is medium in the steel industry.

Bargaining power of Suppliers: The steel making industry is heavily dependent on the ship

breaking industry for its raw materials. But recently the dominant players like BSRM, KSRM,

AKS, GPH Ispat have started to produce their own raw materials. But they cannot meet their

demands, so they have to rely on the suppliers to meet those demands. Therefore, bargaining

power of the suppliers is pretty high in this industry. (Market Insight: Emerging Steel Industry in

Bangladesh, 2016)

Industry Life Cycle:

The analysis of the steel industry shows us that it is growing (Steel Industry in Bangladesh, n.d).

Firstly, during the recent years the current government of Bangladesh has undertaken lots of

projects to develop infrastructure which requires a huge amount of steels. Secondly, the real-

estate company is demanding a huge amount of steels for their construction business. Even

though it is a growing industry, the market is dominated by few larger scale companies, like

BSRM, KSRM, AKS etc. The country is in the middle of the infrastructure development and this

the main reason as the industry is growing. But within the next 15-20 years, the industry is going

to be mature. So BSRM should start to plan to continue its dominance when the stage of the life

cycle changes for this industry.

Macro-environment analysis: PESTEL Model

Political Factors

Over the last couple of years, the government is introducing policies to make better infrastructure

in the country. As a result, the need for the construction in the country has increased which in

turn increased the demand for the steel. Also, the political situation of the country is stable now.

So BSRM is able to do business without any political interruption.

Economic Factors

The growth in the GDP in 2017 is 7.3% (Wikipedia, 2017). The country is doing consistently

good over the last couple of years. As the result, the country will look forward to making its

infrastructure and housing system better which will create large demands for steel. So the

company like BSRM will enjoy this economic growth and will be able to do better business.

Social Factors

According to the data, GDP per capita has been growing steadily over the last couple of years. In

2017, it $1602(Wikepedia,2017). As the people's income is increasing they will want to have a

better standard of living. So they will want to have a better house than before. Hence the demand

for construction in the country will rise and subsequently, the demand for steel will rise too.

Technological Factors

Recently major players of the industry brought billet manufacturing technology and the 500-

grade (BSRM Extreme) technology. These initiatives mean that manufacturers are differentiating

themselves by creating better products and also they are improving their overall production
efficiency. This means that big brands like BSRM will get even bigger by gaining more market

share.

Environmental Factors

Steel Industry causes environmental degradation, mostly caused by air and water pollution. It

produces toxic liquid and gaseous substance as a by-product of the production process. But

BSRM has taken extreme precaution to combat these problems. They have installed APC (Air

pollution control) and WTP (Water Treatment Plant) to ensure minimal degradation to the

environment (BSRM, 2017). They discharge dust free air into the atmosphere and recycle water

indefinitely to protect the environment and abide by the environmental laws in the country

(BSRM, 2017).

Legal Factors

The laws provided by the Bangladesh government is quite friendly to the steel industry. BSRM

had no troubles on following those laws and regulations.

Strengths:

Great Competitive Skill:

From the earliest starting point, BSRM demonstrated high consistency in steel generation

segment which has accomplished them incredibly focused aptitudes. With their experience, they

gained the capacities which empower them to work in solid industry rivalry condition.

Reliability:
Giving quality items has earned them to be the most favored business accomplice of the both

clients and providers. They are great at rendering auspicious administration without bargaining

the best quality which accompanies after deal benefits as well. They have earned some overall

gauges by doing Fatigue test, prolongation test, twist test, yield test and so forth which are most

requesting trial of steel (Test, n.d.).

Best Brand Image:

By creating 500W steel without precedent for the neighborhood business, and with appropriate

limited time systems BSRM had an effect in building the impression of value among purchasers

and merchants mind.

Market leader:

In the Steel Market industry of Bangladesh, BSRM is the main organization. They are among the

three major brands of this industry, every one of them three combinedly supplies at a rate of 60%

of the market needs where BSRM at present involves twenty-six percent of the aggregate steel

advertise.

Employee Bonding with BSRM:

BSRM have built up a solid feeling of responsibility towards association in their workers by

understanding belongingness towards BSRM. The organization gives them legitimate esteem.

Therefore, the representatives are inspired to work with their best effort.

Product Varieties:

BSRM is focusing on various client gatherings and to fulfill them they are delivering distinctive

sorts of steels. Some of them are Xtreme, Maxima, Ultima, Xtrong, Centura (Products, n.d.). A
standout amongst the most mainstream among them is Xtreme, which is essentially utilized for

multi storied development or elevated structures, then again, Centura is committed to a low-end

showcase where the main reason for existing is to construct a foundation of wall.

Backward Integration:

BSRM is right now providing billet to different organizations. They have built up some billet

making plant which is helping them to limit their cost and raise their competency.

Strong Distribution Channel:

With more than 300 dealers all across the country, they have made a very strong distribution line

up (Strengths of BSRM, 2016).

Modern Equipment and Technology:

While taking the venture of "Xtreme 500w", BSRM has taken assistance from German advisors

"Badische Stahl Engineering". All the hardware required for finishing the plant were provided by

Danieli Group, Italy which is among the main three providers of machinery in the metal business

everywhere throughout the world (BSRM Steels to set up fourth melting plant, 2016).

Weaknesses

High Interest on Loan:

According to the annual report of 2016, BSRM have over BDT 500 million in credits from

different monetary foundations and banks (Summary-of-Balance-Sheet, 2016). As a result of the

high financing costs, the profit of BSRM goes down.

Low Power Supply:

Bangladesh has an issue in the power area, it makes the deficiency of energy supply issue

inescapable in the mechanical division. In this way, the generation cost increases as steel

factories need to make their own influence supply or give more cash to get control from the

private sector.

Opportunities:

Expansion of Market:

As of now, BSRM has the ability to deliver around 375,000 M. Tons. Before the ending of 2017,

they can build this to 500,000 M. Tons which will help them increasing 34% of the aggregate

market from 26% (SWOT Analysis of BSRM Steels, 2016).

Internal Market:

BSRM turned into a famous organization globally. So, they have possibilities to enter the global

market and have a solid probability to prevail in the near future.

Increased Demand:

Bangladesh is experiencing a statistic blast at the present time. The current consistent GDP

development demonstrates that. Subsequently, the government has subsidized in different

frameworks like Padma Bridge, they also have provided in real estate sectors. These will build

interest for steel in Bangladesh. As indicated by BSRM, the per capita steel utilization is 30 kg
now in Bangladesh. It is over 217 kg in all around the globe. In this way, there is a chance of

expanded demand for steel in our nation.

Threats:

 When BSRM began their journey, the market was newer and the opposition was lower. But,

as of late, AKS and KSRM have turned out to be two noteworthy contenders in light of the

fact that both the organization have all that could possibly be needed the ability to challenge

BSRM and take away a piece of the pie from BSRM as the demand is expanding day by day.
 Despite the fact that the real estate sector of Bangladesh is getting features of late, still, the

instability because of conflicting cost and request change remain. In this way, it means that

there can be a huge change in the interest for steel anytime.

 The steel mills organizations of Bangladesh have no influence over the cost of crude

materials since they don't control the entire production network. Accordingly, the cost of raw

materials is ever changing. Sometimes, the work and vitality cost go way high.

Business Definition Analysis:

Customer Groups

BSRM customer groups include- real estate developers, private contractors, government

institutions and ordinary consumers. According to our primary research, we have figured that

their major source of revenue is real estate developers. When BSRM products are used in
building Padma Bridge then their overall brand image has enhanced and it gained popularity and

credibility.

Customer needs

The customer needs of BSRM involve reliable and faithful construction steel (iron rod) at a

relatively competitive price to similar brands. The rods and steels are BUET (Bangladesh

University of Engineering and Technology) and BSTI (Bangladesh Standards And Testing

Institution) tested as well as they follow ISO (International Organization for Standardization)

standards.

Method of satisfying needs

BSRM satisfies their customer needs of by always trying to maintain their brand quality,

faithfulness and reliability through consistently conducting various tests on their products, and

various certifications on BUET and BSTI. To maintain their quality, they also follow ISO. They

try to showcase that their product has passed the various test, so that their product is faithful to

use in building, bridges, etc. These are the various customer satisfying aspects of BSRM. And

these aspects create BSRM more faithful and reliable to the customer.

BSRM Distinctive competencies:

As a leading and experienced company, the first distinctive competency of BSRM is making a

steel mill with a fully automated steel rolling mill in the country for the first time. BSRM is the

pioneer of the steel industry in this country. In addition, they have their largest production

capacity in the country and they imported their mills from U.K and combined at the sea port of
Chittagong. They also have the best brand image in the market and also received ISO 9001:2008.

They are very concern about the quality of the product. They called their product "Trinity of

strength, safety and sustainability"

Their system of working process is consistent assurance of quality and its implementation will

ensure product quality and thus customer satisfaction with a large production capacity in the

country. This will help them to create a good customer demand and better quality of service with

long lasting durability by XTREME 500 W, Equal Angel, and channel. (BSRM,2017)

The company has already implemented the total quality management system for fewer defects &

less wastage, reduced costs, greater employee satisfaction with appropriate motivation technique

that resulted in improved productivity & environment on which quality has high priority.

Financial Performance:

Financial Performance highlights the financial strength and the profitability of a company. The

Measures of Financial Performance are discussed below;

Liquidity Performance

BSRM Steel Mills Ltd. Is bearing an agreeable level as far as Liquidity execution. As indicated

by their yearly report 2015, we see that the present proportion of 2015, 2014 and 2013 is 1.06,

1.01 and 0.97. For the last 3 money related years (2015, 2014 and 2013) Acid test proportion

0.57, 0.46 and 0.61. This demonstrates a decent position regarding dissolvability. In addition, the
present advantages for current liabilities are around 0.5. It demonstrates that BSRM Steel

contributes more on inventories which are like its competitor's.

Activity Profile

As indicated by the yearly report 2015 for the last three monetary years (2015, 2014 and 2013),

stock turnover proportion is 9.69, 3.42 and 6.37. So the organization inventories all things

considered 4.82 times in a year to create its income. It demonstrates the operational productivity

of the firm in regards to changing the inventories into completed merchandise. Furthermore, it

has likewise completed its aggregate resource all things considered 1.41 times to produce its

income. In this manner, it shows a proficient operation of BSRM Steel Mills Ltd.

Solvency and the Market Position of a firm

BSRM's money related records for last 3 monetary year demonstrate the firm is fiscally

sufficiently dissolvable. As the organization's income are around 5-6 times more than its

advantage installments. Additionally, The Company needs to profit tax reductions and to bring

down it cost of capital by keeping up suitable of obligation and value. Along these lines, it

empowers the firm to create more benefit. In addition, the market position of the firm which is
measured by its yearly market capitalization and offer cost is as yet tasteful with continuous

increment in share cost because of its better execution and gainfulness. It guarantees higher

capital pick up for its investors

Profitability of a firm

Measured by BSRM net benefit proportion, return on contributed capital and income per share

productivity of the firm is likewise attractive. For most recent 3 years, the firm is keeping up a

decent adjust of net benefit proportion by and large 4.33%. Moreover, the firm gave 19.8% profit

for the aggregate capital put resources into the firm with a normal earning per share (EPS) of

BDT 4.74 for last 3years for its speculators. The firm gave all things considered 40% of its EPS

as profit and kept and rest of the sum as held income for its interest in organization's

development. In this manner, it demonstrates that BSRM is both beneficial and has benefit

development potential.
Thus, based on the above financial analysis, it can be inferred that BSRM Steel Mills Ltd. has a

decent monetary record. It has both productivity and benefit development which are the markers

that the organization is working to guarantee the greatest advantage for investors.

Competitive Advantages of BSRM Steel Mills Ltd:

Competitive advantages are state of affairs that allow a company or country to manufacture a

good or service at a lower price or in a more desirable fashion for customers. These conditions

allow the productive entity to generate more sales or superior margins than its competition.

(Staff, 2017)

As a market leader BSRM Steel Mills has several competitive advantages that help the company

to make better market position and profit in the current market.

Brand recognition:
Bangladesh Steel Re-Rolling Mills Ltd (BSRM) a unit of well-known H. Akberali Group of

Industries, having 61 years of experiences exclusively in steel making is fully automatic steel re-

rolling mill in the country. The mill was imported from U.K. & commissioned at the sea port of

Chittagong. BSRM is the market leader in the steel Market of Bangladesh. They occupy 12 % of

the total steel market. (TrippleEe,2016)

Low-cost high-grade products:

Another competitive advantage of BSRM Steel Mills Ltd. is its abundant supply of low-cost,

high-grade iron.

Modern Equipment & Technology:

The BSRM "Xtreme 500w" project has been conceptualized by the German consultants

"Badische Stahl Engineering (BSE)" and the complete plant and machinery have been supplied

by Danieli Group, Italy – one of the three largest suppliers of equipment and plants in the metal

industry worldwide. So it has the latest and Modern equipment and Technology. (TrippleEe,

2016)

Strong Products Distribution Lineup:

BSRM has selected more than 300 dealers all over the country so that people can get BSRM

products within a reasonable time. Besides this, they have several sales and supply depots in

Dhaka, Comilla, Borga, Shylet, and Khulna. (BSRM, 2017)

Strong Marketing Lineup:

BSRM has developed a sound and effective marketing policy to share knowledge about their

products with design engineers, thus creating more awareness in the minds of the customers.

ISO 9001-2000 certified company:

BSRM maintained International Standards. As well as maintaining local standards. (BSRM,

2017)

Current Business Model:

As the principal activities of BSRM are to carry on the business production from ship breaking,

accessing of high end new raw materials, producing high quality steel for customers, they have a

value creation process at the basic level which draws out an integration of steel manufacturing

operation which includes the collecting of raw materials, using them in order to produce high

quality steel products. Not only they focus only in producing these, they have been consistently

doing CSR activities to lessen the environmental problems, social issues. This helps them to

establish a sustainable high level of profitability by creating a renowned brand image. As they

are doing different activities, they also calculate the outputs of all the activities of business model

in order to improve the overall quality by taking necessary measurements. The long-term

customer relationship, relationship with strategic groups depends on this highly. The

sustainability of the business highly depends on the alignment of core operations with the

mission, vision, values, and goals. Introducing new technology, brining innovation through

research and development in order to produce newer products which satisfy the customer

demands are the culture of this business.

The purpose of BSRM is to acquire excellent viable technologies, enhance useful resource

performance, growing process innovation and manufacture satisfactory great product with a
 purpose to be environmental pleasant. The overall performance of BSRM is precise due its value

of operation, technological advancement method, and nicely innovative practices. The current

business model canvas of BSRM is shown in a chart below.

Key Partners Key Activities Value Customer Customer Segments

 Meghna  Warehousin Proposition Relationships  Automation
Engineerin g ?  Strong Base  Construction
g Works  Manufacturi  Trusted  Value Driven  Engineering
 Collaborati ng Brand  Consumer goods
ng with  Research  Highly
 New foreign
key and Valued
consumer
materials developmen by all
provider. t stakehol
(Backward der
integration
Key Resources Distinctive Channels Marketing
)
 Access to Competenci  Traditional  Promotion
high end es supply  Providing dealership
raw material  Raw channels  Providing Agentship
 Exceedin materials to  Market research
gly specially consumers
qualified MS (mild that is
aptitude steel) manufactu
bars. rer to
 Top in whole-
the seller to
market retailer to
customers
 New
wholesaler
for foreign
exporting
and supply
Cost Structure Revenue Streams
 Purchasing cost of raw materials  Xtreme
 Inventory cost  Maxima
 Processing cost  Ultima
 Interest on debt  Centura
 Bureaucratic cost for combination  Xtrong
 Expense of energy plant  New items that will be enhanced.
Exploit Booming Bangladeshi Economy: Booming economy of Bangladesh is an open door for

BSRM. They can gain by the expanding request from both government and private development

ventures. As they upgrade their economies of scale by expanding creation because of rising

interest; both productivity is expanded and they can make it much more troublesome for their

rivals to be in the market.

Upgrade Lobbying Process with Government: As specified prior ascent in government ventures

will request a huge extent of the business' deals. Also, BSRM's item is now being utilized for

goliath ventures like Padma Bridge. So, having the capacity to supply in Government tasks will

support BSRM's validity and picture. In such manner, BSRM should utilize prepared specialists

who are knowledgeable about managing such issue or have involved acquaintances with suitable

government bodies.

More Investment in Research and Development: BSRM presented 500W development steel path

in 2008. No new product has been brought since then. Presenting imaginative items or adding

even better items than their portfolio will improve mark picture and may likewise supplant

imported items. In this manner, we trust that BSRM should expand interests in R&D keeping in

mind the end goal to improve their image picture and increment their long run productivity.

Shift in Control of Supply Chain: BSRM intensely depends upon outside providers for old ships

and scrap. By and large, BSRM needs to experience layers of operators and different mediums to

speak with providers. So, this negatively affects their general cost structure and planning.
Therefore, we propose that BSRM have their own particular specialists taking control over

interchanges and furthermore they can acquaint barters with pull in more providers and thus

increment dealing control over providers.

Enhance Working Conditions of Ship Breaking Yards: Earlier the issue has been incorporated

under danger. We accept such an issue can fabricate negative observation for the brand.

Moreover, as BSRM anticipates extending universally as prescribed before these issues may

make obstructions regarding directions and brand picture. The issue may bring up issues with

respect to consistence and comparative components.

Increasing the Market Share of Assam: Bangladesh is near the eastern piece of India what's more,

this speaks to a tremendous open door for getting business sector of Assam (BSRM Corporate

Business Strategies Recommendations, Supply Chain Mergers and Acquisitions, n.d.).

Calculated issues have brought about fairly separation of the specific area of India which implies

in terms of dissemination significant steel makers of India are thinking that it’s hard to achieve

the market. Assam has a populace of over 30 million individuals (Census2011.co.in,2011). This

speaks to potential for framework and other development related improvement. In this way,

despite the fact that BSRM is sending out little volumes of item to the area yet they should begin

arranging appropriations, advancements and different perspectives to increase critical piece of

the overall industry of the district.

Use the Strength to become Market Leader: BSRM is the pioneer in their industry with most

extreme piece of the overall industry among peers and have best brand acknowledgment as

specified in past parts. With respect to the macroeconomic condition as the economy of

Bangladesh develops at a rate over 7% (7.11% GDP development in Bangladesh, 2016) there

would be critical development of land area. This thusly will expand request of development steel.
In this manner, BSRM should, as of now put resources into expanding their generation limit with

the goal that they can satisfy the market request. The way toward expanding limit is tedious and

capital concentrated so if BSRM does not begin arranging now they may get bushwhacked.

Procure Limited Steel Producers and Run Through Strong Distributions: As of now specified,

there are 3 enter development steel makers in Bangladesh however there are different little

makers who are by and large battling as economies of scale is a vital factor. BSRM can obtain

these little makers, utilize their assets and abilities to serve the developing interest.

Corporate Strategic Plan and Recommendations

BSRM is one of the dominant force in the steel industry of Bangladesh. Moreover, the steel

industry is in the growing stage in this country. Keeping these things in mind there are some

corporate strategies that we would like to recommend to BSRM.

• Strategic Alliance: The way steels are being produced are changing. In other countries such as

USA and China, the companies are using a more digitalized process to make their steel. But

BSRM is still producing through their old production process. For example, BSRM produces

their steel through Blast furnace which contains impurities and waste product and as a result the

process less efficient. Whereas the companies like Arcelor Mittal, one of the leading steel

manufacturer in the world, uses basic oxygen furnace to produce their steel

(Corporate.arcelormittal.com, 2017). This process makes them more efficient as there are less

waste product and impurities. BSRM do not know all the know-how of the basic oxygen furnace

process. So we would like to recommend them to form a strategic alliance with other companies

who use the process like basic oxygen furnace to share their resources with each other and during

that BSRM could know how to be more efficient.

• Horizontal Integration: As the steel industry in this country in the growing stage, there are lots

of companies who are commencing their business in this industry. As a result, the competitions

are growing. But BSRM can take care of this competition through acquisition strategy. BSRM is

already one of the biggest company in this country. And they have financial capabilities to buy

some of the company. BSRM is earning a profit of around 5 times more than its interest

expenses, which means they have still funds to take loan to invest in new company. Since they

have a good brand image and stable profitability ratio it will be easier for them to get loans and

buy out new company like Shariar Steel Mills ltd, Kamal Steel and re-rolling mills, Rahima

Isphat ltd etc. Acquiring these small scale companies will not only reduce competition within

their industry but will also help them to achieve lower cost structure, more bargaining powers

over suppliers and buyers. Furthermore, with their established distribution channel they can now

have more revenues and achieve economies of scale.

• Vertical integration: Vertical integration can be both forward and backward but we think BSRM

should get into backward vertical integration that is, expanding their operations in their raw

materials department. Scrap steels and recycled ships are their main source of getting iron ore

which is the primary raw material of making steels (Steel industry in Bangladesh, 2017). And

there are relatively small numbers of iron ore suppliers compared to the number of steel

companies in Bangladesh. As the industry is growing the suppliers might increase their

bargaining power in the future. So to avoid such problems BSRM can invest in the Ship

Breaking industry in Bangladesh. If done so they will be in control of their main raw material.

The other rationale behind suggesting to go for backward integration is that it will improve the

quality of their raw materials and overall scheduling of their production operations. Thus it will

reduce their cost structure and their profitability and efficiency of their business. As there is no
such risk of technological change in extracting iron, investing in the ship breaking industry to get

iron seems suitable for BSRM as they have both financial capabilities and other resources to go

for this option.

Steel industry requires a huge amount of powers and BSRM does not have sufficient power

plants to supply all the powers they need. The corporate level of the BSRM should consider in

installing new power plants to avoid any disruption in their production process.

If these suggestions are taken into account, then BSRM will be able to main its dominance in the

market and will also be able to ensure its sustainable growth.

Business level strategies and recommendations:

BSRM steel should focus on broad differentiation strategy to support their corporate level

strategies as well as their different market segmentation strategies. Broad differentiation

strategies help BSRM to add unique features that allow differentiation of product than other

competitors in the industry.

Broad differentiation strategy: BSRM steel should follow broad differentiation strategy for the

next five years to ensure superior quality of their product. BSRM steel should educate their

customer about their unique product's quality through communication campaign as well as

establish a strong distribution network to ensure BSRM's leadership of market.

Value innovation: BSRM should focus on value innovation to satisfy their customer needs.

BSRM is fatigue tested in the UK and they were testing their product again and again to prove

their commitment towards safety among the customers. By shifting push market to pull market,

the consumer of BSRM demand BSRM more from retailers because of the brand loyalty. BSRM

can go thousands of mile from their competitors by conducting research of value innovations.
Horizontal acquisition: BSRM, KSRM, and AKS are the three giants in the field of the steel

industry in Bangladesh. They consume all most of the market share. But some little steel

company like Rahim Group, Bangladesh Steelco, Monowara Industries and many others also

exist in this industry. BSRM can merge or acquire this type of little company to reduce their

rivalry and emerge as a large enterprise in the steel industry that ensures profitability in the

future. (Big steel companies displace small ones, 2014)

Capacity Control: Small steel companies are forced out from the market day by day because of

more giants are entering the market. BSRM should expand their capacity at a level so that they

can meet the country's entire demand. The demand for steel derives from other sectors like

construction buildings, roads, and infrastructure and so on. So BSRM should expand their

production lines by seeing how much other sectors grow day by day. On the other hand, BSRM

management team can conduct marketing research to know the actual demand of their product.

Functional Level Strategies and recommendations

Organizations based on its size, nature, and scope of business must carry out some functions like:

Marketing, Production & Operations, Human Resource Management, and Research &

Development etc. Careful planning, execution and management of these functions are very

important for successful strategic planning, implementation and control.

Marketing strategy:

Product:

BSRM is country's first producer of 500 MPa yield strength re-bar. In Bangladesh Perspective

Company produces 5type of steels.

Xtreme: Xtreme is a high capacity reinforcing steel for general construction of low and medium

rise commercial and residential buildings and bridges. It is mostly used in building houses.

(BSRM, 2017)

Maxima: Maxima use to build cities, bridges, and factory. Because of that, it is the backbone of

a nation's infrastructure. BSRM Maxima is the perfect element which requires Strength and

security in the same breath. BSRM Maxima can be used in Nuclear power stations and large

river crossing Bridges. (BSRM,2017)

Ultima: BSRM Ultima uses to save the building from earth quick. This steel becomes stronger

and more difficult to break. (BSRM,2017)

Xtrong: Xtrong is a high strength structural steel obeying to ASTM 572 Grade 50 and ISO 630

Grade 345 Channels. (BSRM,2017)

Centure: Corrosion induced failures cause severe heartbreak to concrete structures is most

common in any chemically invasive environments. Century help to corrosion free structure.

(BSRM, 2017)

Pricing strategy:

A pricing strategy is most important to marketing strategy. The success of any business depends

on long run profit, growth, and sustainability. Price because of its influence of unit sale volume

and profit margin, affected long run profit objective. The pricing strategy adopted by BSRM is

market penetration strategy. By setting relatively low price BSRM has managed to obtain a large

market share.

Place:
Place represents the location where the product can be purchased. But in industrial marketing

place is often to as the distribution channel.

Distribution channel: BSRM Distribution Channels are radically at variance with the

Distribution of the Customer Base, there are obviously logistic problems in the supply and

servicing of the customers, and this may represent an opportunity for companies entering that

particular national market to provide a superior service and thereby gain market share.

Promotion:

In marketing advertising, promotion and publicity play an important role in the communication

strategy. Promotion is used to create awareness of the company to increase the sale of the

product and to increase the overall effectiveness of the selling effort.

Promotional activities under by BSRM steel:

News paper

Corporate video

TV commercial

News letter

Production & Operations:

In Bangladesh, the steel industry is growing day by day. The steel industry massive rise in

demand. BSRM should focus on increasing their production capacity. BSRM's product "Xtreme

500W" generates 97% of its total revenue (Bangladesh Steel Industry Review, 2016). Because of

that BSRM decided to setup more Xtreme production plants.

Human Resource Management:

Employee planning:

BSRM HR department projects the long term needs of the employees to support the long term

departmental plan as well as the company's long term goals. BSRM always try to hire talented

and ambitious people for any position within the organization.

Performance appraisal:

Through performance appraisal process the company can evaluate individual current

performance against his expected performance. BSRM normally do performance appraisal once

in a year. It enables management to compare the performance of individuals at the same rank and

also same person performance in different years. BSRM ranks the employee's performance from

very good, medium, average, and below average. On the base of the Ranking BSRM give

rewards to its employees for his/her performance.

Training and Development:

Different seminars and workshops are arranged by BSRM to give training to their employees and

also develop their working skills. This training and development program helps the employees to

understand his/her responsibilities to execute the organizational goals. Employees are trained to

know the changes in the steel market and changes in prices. BSRM also give employees

problem-solving techniques and conflict management.

Compensation and Benefits plans:

Benefits plans aren't same for every year. It depends on the company's financial condition for

that fiscal year. BSRM gives increments every year to its employees. Salary structure and

compensation package is very much competitive based on other competitors.

Research and Development:

The innovative work capacity of BSRM needs to concoct new items that are reliable with their

clients' needs and enhance effective generation techniques that will include some level of

adaptability in the creation procedure and furthermore bring down cost structure. At the display,

this capacity should concentrate more on the Xtreme 500w items and their advancement, since

the achievement earned from this specific division has drawn all other steel producing

organization's consideration. The innovative work needs to have a great association with the

showcasing and creating capacity to produce learning about the clients and the generation

criteria.

Technology Strategy and Recommendations:

For their next five years, BSRM the steel re-rolling mills try to planning different types of

strategy for the company to accomplish their goals and their future planning. So BSRM needs to

follow the best practice of modern technology with ideological movement, new product
innovation besides better lineup and also make sure they have efficient resources to complete

their sustainable market by delivering better quality products to the customer. According to their

business plan, the new technological strategies were accomplished to reduce their waste

materials and more time efficient for their production. Due to their competitive market, BSRM

always need to improve their development speed & quality by consolidation in technology and

(R&D) research and development, pursue the best practice for operational and manufacturing

technologies. Knowledge based engineering application software from BSRM technologies that

speed up their productivity. They also need to concern about the environmental factor that for

producing the BSRM products. They are already concerned about their environment because of

less consumption of carbon monoxide gas when they producing their product and try to filter the

waste materials that contain toxic acid.

BSRM need to come up with innovative product and good quality rod that capture the market

and maintain the product line as before because they already have a huge reputation in this

competitive market. In addition, they can develop their unique product for instance, scratch

resistance product, earth quack zone building materials that consumer can save their roofs and

facades and also save their lives.

For recommendation part, by doing more innovation in the technology sector and also go for

horizontal integration with better distribution channel to improve their production and planning

capabilities. A good application like (SML) - Steel Markup Language can introduce BSRM with

great success in the long run (Canvas.upenn.edu, 2017). Besides, they also introduce more

technologies that can improve their production capabilities.

 For future technological recommendations:

 Laser contouring system.
  Sustainable steel making using Biomass and waste oxides.
 Co2 Abatement and alternative iron making process.
 RFID tags for their warehouse management system.
 Blast furnace optimization via modeling.
 Suspension reduction of iron with Ore concentrates using hydrogen.

Using these technologies BSRM can introduce their market with huge success like laser

contouring of vessels and CFD modeling and also alternative iron making. Without new

technology and modern equipment that will affect the distribution channel & production

capabilities. As they have the multi-level business sector they should be more aware of the

distribution channel.

Revised Business Model:

If BSRM incorporate our suggestions and recommendations, there will be a few changes in their

business model. These changes are shown in the table below:

Key Partners Key Activities Value Customer Customer

 Warehousing Proposition Relationships Segments
 Meghna  Manufacturing  Trusted  Strong Base  Automation
 Research and Brand  Value Driven  Construction
Engineering development  Highly  Engineering
Valued by  Consumer
Works all goods
stakeholder  New foreign
 Collaborating with consumer
 key materials Key Resources Distinctive Channels Marketing
 Access to high Competencies  Traditional  Promotion
provider. end raw  Raw supply  Providing
material materials channels to dealership
(Backward  Exceedingl specially consumers  Providing Agent
y qualified MS (mild that is ship
integration) aptitude steel) bars. manufacturer  Market research
 Market to whole-
 Top foreign leader seller to
retailer to
company(Strategi customers
 New
c Alliance) wholesaler
for foreign
exporting
and supply
Cost Structure Revenue Streams
 Purchasing cost of raw materials  Xtreme
 Inventory cost  Maxima
 Processing cost  Ultima
 Interest on debt  Centura
 Acquisition cost (Horizontal merger)  Xtrong
 Expense of energy plant  New product line (differentiated product)
Governance Recommendations

Controlling Supply Chain Efficiently:

After having more providers, BSRM ought to guarantee that its providers are following
appropriate rules, for example, not utilizing under age workers. This is in a way upgrading the
brand values in some extent as BSRM ought to grow abroad in this manner. To grow bigger, the
organization must concentrate on such issues.

Providing Safer Working Condition:

To be more consistent with worldwide rules and regulation, and have a moderately better brand
value, BSRM should set proper rules and strategies to be followed in the event of any injuries
taking place at the yards and set appropriate remuneration structures. BSRM should develop a
devoted board to manage matters of working conditions, for example, wearing fitting safety gear
will be required for BSRM's workers. BSRM should permit the development of a worker's
organization with its delegate having one seat of the Board. These exercises will massively
improve the brand value of BSRM universally as a brand.

Improving Lobbying Technique with Government:

As of now, BSRM does not hold any rules concerning with the Government. The organization
must plan composed rules with respect to who should approach and arrange the delegates of
Government, how Government needs to be taken care of at suitable rebate terms. These
components should guarantee that anyone who represents BSRM is not occupied with
exploitative conduct, for example, influencing the Government.

Strategic control system recommendations:

For establishing an effective strategic plan, we suggest BSRM to implement a strategic control

system in their entire operation so that they can maintain their standard in the field of the steel

industry. Bellow, we give some recommendation which indicates how strategic control system

supports our recommended strategies:

Value innovation: BSRM can use a strategic control system to improve the value innovation

process. Today’s customers are more value oriented. They want a good quality product as well as

cheap rate. When the go for buying, they first focus on the value of that product’s which can

satisfy the customer needs. So BSRM Should introduced a strategic control system in the field of

value innovation as well as create a strong brand loyalty.

Vertical integration: It was recommended earlier that BSRM should go for backward integration

to expand the operation of the raw material department. BSRM can implement strategic control

system in this department to establish a strong supply chain of raw materials. It gives a guarantee

of the better flow of raw materials. As the bargaining power of suppliers might increase in future

BSRM should exploit strategic control system in backward integration to take the control of raw

material supply.
Horizontal acquisition: As there are three giants in the steel industry that consumes almost whole

market share but there are also many small companies available in the industry. In the earlier

part, we recommended to horizontal integration. So, we can execute strategic control system

while applying horizontal integration to reduce the rivalry. The Strategic control system also

helps BSRM to evaluate each of small company based on their performance and gives a proper

guideline to build a large enterprise.

Culture Recommendations:
The present authoritative society is underpinned via the prescribed methodologies. The values,
dream and objectives that BSRM takes after need enabled them will turned into the business
sector pioneer position in the steel business. The prescribed cultural methodologies to each level
of BSRM’s help its strategies. The reason behind this Might be:
Selective objectives: BSRM steel factories Ltd. keeps tabs around particular objectives to a
chance to be refined by its workers. Those objectives set eventually perusing that highest point
level management may be hosting particular targets which is exact and particular. Those present
objective of the agency is illustrated likewise with hold its advertise heading adrift. Position
through guaranteeing most elevated caliber of its item for approaching periods. Will power
BSRM on bring additional innovative work in the association will expand. Handling what’s more
to create those result.

Vision: The vision of BSRM is ‘‘Maintain our leadership positions in the steel industry by-
producing the best quality steel products, continuously enhancing customer satisfaction and
becoming a reliable business partner of our Customers and Suppliers” (Vision – values, 2017).
BSRM’s internal culture is friendly to fulfill their vision. BSRM focuses on quality to achieve
their vision.

Values: BSRM accepts economic development through overhand. Furthermore, flat

reconciliation from claiming also concentrates on personal satisfaction Furthermore unwavering
quality from claiming its results and ceaselessly tries will create them through advancement and
R & D. Besides, it polishes authority society in its association. Around the workers and in
addition outside with lead those market. It tries to guarantee client fulfillment through client
responsiveness on its item nature.
Global Strategy

BSRM, as of now, did not enter into the International market yet. But one of our suggestion to
BSRM was to build a market in the Eastern part of India called Assam. Assam is re-building its
infrastructure, which gives a huge opportunity for steel companies to build a market share.
BSRM being one of the top company in Bangladesh has a reputation in India. So, if BSRM does
business in Assam it can be quite profitable for them. But they need to have strong strategic plans
mainly a strong global strategy to compete with the local companies. So firstly, we would
recommend BSRM to follow Global Standardization Strategy.

To compete with the local competitors of India, BSRM would have to reduce their cost as much
as possible. As steel is a general product everywhere in the world BSRM wouldn't have to think
about local responsiveness to change the product according to their local demand. So, at Assam,
there would a high pressure for cost reduction and low pressure for local responsiveness. Hence
BSRM would have to follow a business model based on pursuing low-cost strategy on a global
scale. That's why we recommended BSRM to follow Global Standardization Strategy.

Another global strategy that we would like to recommend to BSRM is to adopt location
economies. Exporting steels to India or any other country is infeasible and also costly. BSRM
would have to bear huge transport cost if they wanted to export steel. So, we would recommend
opening a factory at Assam to eliminate this cost and make their product more cost effective.

Therefore, if BSRM wants to go Assam for its business operation and build a new market they
need to adopt these strategies to be more efficient and profitable. Assam seems a good market for
BSRM and we think they should build a market there for their product. Upon successful business
operation and experience, BSRM could expand into other countries too.

Ethical Value Proposition

Value, ethics and morality as contracts are highly interdependent to each other. Ethics is defined

as that which constitutes good and bad human conduct (Barry, 1979) and as that which decides
what is good and evil, right and wrong and thus what we ought and ought not to do (Beauchamp

and Bowie, 1983). If BSRM steel company doing any unethical activity on behalf of their code

of conduct, it might hamper to their business and also create a negative impact to the society and

stake holders also. We conducted with overall internal and external environment.

Internal working condition of ship breaking yard: Chittagong where ship breaking yard and their

warehouse are extremely harmful for the environment and also workers. Some cancer-causing

agents are also evaporated this area because of melting the steel. In ship yard, some pristine

beaches into metallic graveyards dotted over with pools of grime and sludge. Another melted of

waste materials get into the ocean. For that reason, the eco system are totally imbalance in the

sea level. Another important suspect of internal environment was fatal accidents. It actually

occurs only because inhaling toxic fumes and overexposure to asbestos. (Cruz, 2012).

Leading by market share in the market BSRM must meet several value creations to achieve their

desired position. Engagement with senior leadership across the organization and embedded

ethics as a core expectation of leadership criteria. They have their strong commitment to their

buyer and supplier and also good relation to the government. Apart from BSRM steel company,

other main competitors are also follow their ethical dilemmas. The dominant performance causes

defects to their company. It creates negative impression to their customer in the long run and

difficult to sustain in the market. A good market evaluation makes a company profitable.
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