Thursday, 11 August 2016
Sunday, 31 January 2016
Assignment on Organizational Behivior (OB)
Attitude Survey Questionnaire
Please answer each of the following statements using the following rating scale:
5 = Strongly agree
4 = Agree
3 = Undecided
2 = Disagree
1 = Strongly disagree
# Please answer each of the following question by giving Tick Mark.
1. The company encourages me to offer innovative ideas to improve our performance.
Strongly agree (b) Agree (c) Undecided (d) Disagree (e) Strongly disagree
2. The environment of the workplace is comfortable and safe.
Strongly agree (b) Agree (c) Undecided (d) Disagree (e) Strongly disagree
3. I am treated with respect by management and fellow employees.
Strongly agree (b) Agree (c) Undecided (d) Disagree (e) Strongly disagree
4. How satisfied are you with the training and development of employees?
Strongly agree (b) Agree (c) Undecided (d) Disagree (e) Strongly disagree
5. How satisfied are you with the employees benefit package?
(a) Strongly agree (b) Agree (c) Undecided (d) Disagree (e) Strongly disagree
6. I am in a job that best matches my skills and interests.
(a)Strongly agree (b) Agree (c) Undecided (d) Disagree (e) Strongly disagree
7. I feel comfortable suggesting ideas to improve our processes and products.
Strongly agree (b) Agree (c) Undecided (d) Disagree (e) Strongly disagree
8. I can balance the demands of my work life with the demands of my personal life.
(a)Strongly agree (b) Agree (c) Undecided (d) Disagree (e) Strongly disagree
9. I feel that the company cares about its people.
Strongly agree (b) Agree (c) Undecided (d) Disagree (e) Strongly disagree
10. The mission or purpose of the company makes me feel my job is important.
Strongly agree (b) Agree (c) Undecided (d) Disagree (e) Strongly disagree
11. I feel comfortable asking my manager questions.
Strongly agree (b) Agree (c) Undecided (d) Disagree (e) Strongly disagree
12. Overall, how satisfied are you with working for the company?
(a) Strongly agree (b) Agree (c) Undecided (d) Disagree (e) Strongly disagree
Summary of Attitude Survey Questionnaire (Participated By National Bank Limited, Head Office- 12 Employee)
NO
Questions
Strongly Agree
Agree
Undecided
Disagree
Strongly Disagree
1.
The company encourages me to offer innovative ideas to improve our performance.
3
4
2
2
1
2.
The environment of the workplace is comfortable and safe.
4
5
1
2
0
3.
I am treated with respect by management and fellow employees.
2
4
3
2
1
4.
How satisfied are you with the training and development of employees?
3
5
3
0
1
5.
How satisfied are you with the employees benefit package?
3
3
2
3
1
6.
I am in a job that best matches my skills and interests
4
4
3
1
0
7.
I feel comfortable suggesting ideas to improve our processes and products
2
6
2
1
1
8.
I can balance the demands of my work life with the demands of my personal life
1
7
2
2
0
9.
I feel that the company cares about its people.
0
6
4
0
2
10.
The mission or purpose of the company makes me feel my job is important.
3
4
2
2
1
11.
I feel comfortable asking my manager questions
4
4
1
1
2
12.
Overall, how satisfied are you with working for the company?
3
5
2
2
0
Attitudes: Evaluative statements or judgments concerning objects, people, or events. Attitudes are the feelings and beliefs that largely determine how employees will perceive their environment , commit themselves to intended actions and ultimately behave. Attitudes form a mental set that affects how we view something else ,much as a window provides a framework for our view into or out of a building.
Cognitive component The opinion or belief segment of an attitude.
Affective Component The emotional or feeling segment of an attitude.
Behavioral Component An intention to behave in a certain way toward someone or something.
Job Satisfaction: Job satisfaction is a set of favorable or unfavorable feelings and emotions with which employees view their work.Job satisfaction is an affective attitude a feeling of relative like or dislike toward something. A collection of positive and/or negative feelings that an individual holds toward his or her job.
Attitude Surveys: Eliciting responses from employees through questionnaires about how they feel about their jobs, work groups, supervisors, and the organization.
Measuring Job Satisfaction
Single global rating
Summation score
How Satisfied Are People in Their Jobs?
In general, people are satisfied with their jobs.
Depends on facets of satisfaction—tend to be less satisfied with pay and promotion opportunities.
Measuring Employee Attitude:
Organizations are increasingly interested in retaining right talents while targeting for new talents; measuring employees attitude provides an indication of how successful the organization is in fostering a conducive environment which nurtures great attitude among employee’s towards their Job and company .
Because attitude is basically a psychological state, care should be taken in the effort of quantitative measurement, although a large quantity of research in this area has recently been developed.
The usual measures of employee attitude involve an employee attitude survey with a set of statements using a Likert Technique or scale. The employee is asked to evaluate each statement in term of their perception on the performance of the organization being measured.
-END-
Assignment On Effects of public expenditure
Assignment
On
Effects of public expenditure
Submitted To:
Tazrina Floora
Lecturer
Stamford University Bangladesh.
Submitted By:
Name: Sadia Ahmed
ID No. BBA 042 13339
Date of Submission: 09/03/2013
Effects of public expenditure
The government economy is the part of the economy. Different sector of the economy are interdependent and influence each other, similarly, the government sector also is interlinked with rest of the economy. Government sector has the authority to bring certain changes in the economy. It is also an important means of directing the working of the rest of the economy. It is this intricate relationship between the government sector and the rest of economy which spells out different possible effects of public expenditure.
1. Public Expenditure Economic Stability
Economic stability refers to an economy that experiences constant growth and low inflation. Advantages of having economic stability include having increased productivity, improved efficiencies and low unemployment. Common signs of an unstable economy are extended time in a recession or crisis, rising inflation, and volatility in currency exchange rates. An unstable economy causes a decline in consumer confidence, stunted economic growth and reduced international investments.
Growth of international trade and commerce has allowed for the economic stability of one country to affect the stability of others. When a country’s economy becomes unstable, it will experience a large reduction in international investments and spending. Foreigners can also lose significant money if their investments are within a country with an unstable economy. For example, if an investor in France purchased real estate within the U.S. before the economic crisis of 2008, the value of the investment may have dropped to irrecoverable lows even after the U.S.’s recovery.
Economic instability takes the form of depression, recession and inflation. Public expenditure is used as a mechanism to control instability. The modern economist Keynes advocated public expenditure as a better device to raise effective demand & to get out of depression. Public expenditure is also useful in controlling inflation & deflation. Expansion of Public expenditure during deflation & reduction of public expenditure during inflation control money supply & bring price stability.
2. Public Expenditure and Production
Public expenditure may be productive directly or indirectly. Governments, in every country, are running commercial enterprises which are directly productiveThe effect of public expenditure on production can be examined with reference to its effects on ability & willingness to work, save & invest and on diversion of resources.
Ability to work, save and invest : Socially desirable public expenditure increases community's productive capacity. Expenditure on education, health, communication, increases people's productivity at work and therefore their incomes. With rise in income savings also increase and this in turn has a beneficial effect on investment and capital formation.
Willingness to work, save and invest : Public expenditure, sometimes, brings adverse effects on people's willingness to work and save. Government expenditure on social security facilities may bring such unfavourable effects. For e.g. Government spends a considerable portion of its income towards provision of social security benefits such as unemployment allowances old age pension, insurance benefits, sickness benefit, medical benefit, etc. Such benefits reduce the desire to work. In other words they act as disincentive to work.
Effect on allocation of resources among different industries & trade : Many a times the government expenditure proves to be an effective instrument to encourage investment on a particular industry. For e.g. If government decides to promote exports, it provides benefits like subsidies, tax benefits to attract investment towards such industry. Similarly government can also promote a particular region by providing various incentives for those who make investment in that region.
3. Public Expenditure and Economic Growth
The goals of planning are effectively realised only through government expenditure. The government allocates funds for the growth of various sectors like agriculture, industry, transport, communications, education, energy, health, exports, imports, with a view to achieve impressive growth.
Government expenditure has been very helpful in maintaining balanced economic growth. Government takes keen interest to allocate more resources for development of backward regions. Such efforts reduces regional inequality and promotes balanced economic growth.
4. Public Expenditure and Distribution
The primary aim of the government is to maximise social benefit through public expenditure. The objective of maximum social welfare can be achieved only when the inequality of income is removed or minimised. Government expenditure is very useful to fulfill this goal. Government collects excess income of the rich through income tax and sales tax on luxuries. The funds thus mobilised are directed towards welfare programmes to promote the standard of poor and weaker section. Thus public expenditure helps to achieve the objective of equal distribution of income.
Expenditure on social security & subsidies to poor are aimed at increasing their real income & purchasing power. Public expenditure on education, communication, health has a positive impact on productivity of the weaker section of society, thereby increasing their income earning capacity.
Conclusion
Modern economies have all experienced tremendous growth in public expenditure. So it is absolutely necessary for governments to formulate rational public expenditure policies in order to achieve the desired effects on income, distribution, employment and growth.
Assignment on Micro Finance
MICRO CREDIT FINANCE
Literature Review
Microfinance and microcredit.
In the literature, the terms microcredit and microfinance are often used interchangeably, but it is
important to highlight the difference between them because both terms are often confused. Sinha
(1998) states “microcredit refers to small loans, whereas microfinance is appropriate where NGOs
and MFIs1 supplement the loans with other financial services (savings, insurance, etc)”. Therefore
microcredit is a component of microfinance in that it involves providing credit to the poor, but
microfinance also involves additional non-credit financial services such as savings, insurance, pensions and payment services (Okiocredit, 2005).
The History of Microfinance
Microcredit and microfinance are relatively new terms in the field of development, first coming to
prominence in the 1970s, according to Robinson (2001) and Otero (1999). Prior to then, from the
1950s through to the 1970s, the provision of financial services by donors or governments was mainly in the form of subsidised rural credit programmes. These often resulted in high loan defaults, high loses and an inability to reach poor rural households (Robinson, 2001).
Robinson states that the 1980s represented a turning point in the history of microfinance in that MFIs
such as Grameen Bank and BRI2 began to show that they could provide small loans and savings
services profitably on a large scale. They received no continuing subsidies, were commercially funded
and fully sustainable, and could attain wide outreach to clients (Robinson, 2001). It was also at this time that the term “microcredit” came to prominence in development (MIX3, 2005).
The difference between microcredit and the subsidised rural credit programmes of the 1950s and 1960s was that microcredit insisted on repayment, on charging interest rates that covered the cost of credit delivery and by focusing on clients who were dependent on the informal sector for credit (ibid.). It was now clear for the first time that microcredit could provide large-scale outreach profitably.
The 1990s “saw accelerated growth in the number of microfinance institutions created and an increased emphasis on reaching scale” (Robinson, 2001). Dichter (1999) refers to the 1990s as “the microfinance decade”. Microfinance had now turned into an industry according to Robinson (2001). Along with the growth in microcredit institutions, attention changed from just the provision of credit to the poor (microcredit), to the provision of other financial services such as savings and pensions (microfinance) when it became clear that the poor had a demand for these other services (2005). Microcredit Summit in 1997. The Summit aims to reach 175 million of the world’s poorest families, especially the women of those families, with credit for the self-employed and other financial and business services, by the end of 20154 (Microcredit Summit, 2005). More recently, the UN, as previously stated, declared 2005 as the International Year of Microcredit.
Micro-credit in Bangladesh
Bangladesh has experienced rapid growth in the micro-credit sector since 1990.
Prior to 1990, only a handful of organizations were in operation. Many NGOs adopted
and built on the experience of the Grameen Bank. Some of these NGOs experimented
with the Grameen Bank micro-credit delivery system at the beginning and gradually
they developed their own micro-credit delivery system such as BRAC and ASA. Currently, more than 1,000 NGOs operate micro-credit programmes in
Bangladesh. The contribution of many of these NGOS to microcredit
disbursement is very small. For example, a study of 369 NGOs indicates that
the top three NGOs as of June, 1998: held 69 per cent of total credit; held 83 per cent
of total net savings; held 85 per cent of cumulative credit; held 82 per cent of
outstanding loans; and captured 71 per cent of the total revolving fund. Most of the micro-credit institutions follow the flat rate method in calculating
total interest. A very small number follow the declining method in calculating total
interest. Under the flat rate method, NGOs charge interest rates typically between 10
to 30 per cent.
The empirical analysis presented below is based on data collected for three
organisations involved in micro-credit activities in Bangladesh: (1) the Grameen
Bank; (2) the Bangladesh Rural Advancement Committee (BRAC); and (3) the
Association of Social Advancement (ASA).
The Grameen Bank evolved from research project aimed at identifying the
causes of poverty carried out by Professor Muhammad Yunus. He found that capital
constraints had been forcing women to sell their handicraft products to input providers
at prices that were much lower than market prices.
In 2000, membership in the Grameen Bank was about 2.3 million, with a
cumulative loan disbursement of about $3.2 billion.
After independence in 1971, the Bangladesh Rural Advancement Committee
(BRAC) was established. Initially its main objective was to conduct relief and
rehabilitation programmes. It continued to widen its activities and in 1976 established
a micro-credit programme. At present it is prominent among the biggest NGOs in
terms of development and micro-credit activities. BRAC started its micro-credit
programme in 1976.
The Association of Social Advancement (ASA) was established in 1978. It
began its micro-credit programme in 1991. Currently, ASA is the third largest microcredit
organisation in Bangladesh. It has developed a less expensive model for the
implementation of savings and credit program, which has helped it become a more
cost effective and sustainable program (Jain, 1999; Rutherford, 1995). Kalily, Imam
and Khan (2000) conclude that ASA is more cost effective and more sustainable than
the Grameen Bank. By 2000, ASA had extended credit to poor people in 22,740
villages out of approximately 86,000 villages in Bangladesh. The total number of
members of ASA in 2000 was 1.2 million. In the same year the cumulative loan
disbursement and cumulative savings of members stood at $466 million and $97
million respectively. In 2000 the recovery rate of ASA was 99.9%.
Assignment on Insurance (Part 4)
Peoples Insurance Company Limited provides insurance solutions in Bangladesh. The company offers fire, industrial risk, marine cargo, marine hull, motor, contractor’s risk, erection risk, machinery breakdown, deterioration of stock, boiler and pressure vessel, and burglary and housebreaking insurance solutions. It also provides cash-in-transit, cash-in-safe, cash-on-counter, public liability, personal accident, workmen’s compensation, goods-in-transit, comprehensive travel, overseas medi-claim, fidelity guarantee, and bank lockers insurance solutions. The company was incorporated in 1985 and is based in Dhaka, Bangladesh.
The Peoples Insurance Company Limited is very proud to stand beside its customer and general people of Bangladesh when they are in disaster. The company is always a friend of it’s valued customer through its business responsibilities and of general people of Bangladesh through its corporate social responsibilities. Our board of directors leading both types of responsibilities includes veteran insurance personalities, industrialists, doctors, chartered accountant, and business professions. The human resource team is educated in developed countries like USA, UK, Australia, and Germany. The board of directors is chaired by Mr. Abul Basher Mukul, who is always dedicated to the company.
Our vision Our mission is to reach at zenith point of providing quality service and hence achieving highest corporate goal and customer satisfaction. Our slogan is “manush manusher Janna”
Our mission Our assignment is to produce value for shareholders all the way through customer, employee and general people satisfaction
First private insurance company in Bangladesh
A reliable insurance company in the insurance landscape in Bangladesh.
Customers’ satisfaction is our main concern.
We value our customer, we protect our customer.
We provide the protection you need.
Care for you forever
To get you set soon again.
Marches with time
Celebrating 30 years of time
Future Plans
The Company has undertaken various realistic future plans which amongst others include the following:-
To computerize the entire operation system within the shortest possible time
To impart extensive training for the employees at home and abroad. Field force (100%) has to be properly groomed up.
To expand Company's operations to all commercially important places of the country gradually.
To introduce new products depending on the demand of the market.
To observing March as the "Client Service Month" in every year.
To follow "Service First than Business "by expeditious and judicious settlement of claim.
Capital Structure
Date of Incorporation
31 March 1985
Obtained Certificate for Commencement of Business
31 March 1985
Registered with the Department of Insurance
31 July 1985
Authorised Capital
Tk. 50.00 Crore
Issued, Subscribed and Paid up Capital
Tk.15.00 Crore
Listing in Dhaka Stock Exchange
29 July 1990
Listing in Chittagong Stock Exchange
10 October 1995
Prospectus Issued for Floatation of Public Shares
16 August 1990
Amount of Public Subscription
Tk. 3.00 Crore
Registration of Land at 36, Dilkusha C/A,Dhaka-1000.(Measuring 16.85 Katha)
05 March 1998
Inaguration of 22 storied Building Construction work at 36, Dilkusha C/A, Dhaka-1000
09 June 1999
Bonus Share Issued @ 25%
In 2004
Bonus Share Issued @ 100%
In 2005
Listed with CDBL
4th July 2005
Rated by CRISL
CPA-BBB
Corporate Social Responsibility (CSR)
Peoples Insurance Company Ltd has been participating in Corporate Social Responsibility (CSR) continuously since its inception in various ways. As for instance, the company has developed a unique culture to help distressed peoples, environment, heritage, sports, education, employment and much more. A few of the corporate social responsibilities are as follows:
After the natural disasters, we participate in various types of the activities for the reconstruction of the damaged infra-structures. Moreover, when the calamity is over, we try to take care of those who have lost their lives and their valued properties.
We are always in favor of protecting our tradition and heritage. For example, our company always sponsors not only the sports which are our own, for example, Kabadi, Bali Khela, Lathi Khela etc. but also our non-traditional sports like football and cricket.
Our company created a significant number of employment opportunities for the unemployment human resources since its inception. The effort for job creation will continue in future too.
The company has a plan to provide scholarships for the needy brilliant students who want to make a career in the fields of technology and digital sciences.
We have a plan to help the sick-aged people so that they do not consider themselves as a burden of our society.
Finally, the company focuses on the welfare of the employees so that they can have the necessary skills and opportunities to face the challenges.
Head Office Executives
S. N.
Name
Designation
1.
M. H. Khaled
Managing Director & CEO
2.
Nizam Mohammed Uddin
Additional Managing Director
3.
Mezbahul Karim
Deputy Managing Director
4.
Abdullah-Al-Mamoon
Deputy Managing Director
5.
M. Abu Bakar Siddique
Deputy Managing Director
6.
Sib Sankar Saha
Deputy Managing Director & CFO
7.
Md. Shamsul Haque Khan
General Manager-II
8.
Md. Abdul Wohab Khan
General Manager-II
9.
Md. Iqbal Hussain
General Manager-II
10.
Md. Shafrinoor Rahman
General Manager-II
11.
Md.Delower Hossain Chowdhury
Deputy General Manager
12.
Chowdhury Hamid Gaffar
Deputy General Manager
13.
S. M. Nasim
Deputy General Manager
14.
Md. Jahangir Alam
Deputy General Manager
15.
Md. Abdullah-Al-Mobin
Deputy General Manager
16.
Ashique-Ur-Rahim
Deputy General Manager
17.
Mir Zulfequr Rahman
Deputy General Manager
18.
Md. Sharifuddin
Deputy General Manager
19.
Asif Nur
Deputy General Manager
20.
Md. Azizul Haque Talukder
Asstt. General Manager
21.
Md. Kamaluddin Akunjee
Asstt. General Manager
22.
Anisul Mowla Ratan
Asstt. General Manager
23.
Md. Nurul Huda
Adviser(Marketing)
Valued Customers
LIST OF SOME OF OUR VALUED CLIENTS IN THE LAST 5 YEARS.
1.
The ACME Laboratories Limited
2.
Apex Foods Limited
3.
Apex Weaving & Finishing Limited
4.
Bashundhara Group
5.
BOC Bangladesh Limited
6.
Abul Khair Group
7.
DADA Corporation (Korean Enterprise)
8.
Echo Cotton Mills Limited
9.
Erba Group
10.
Fison's (Bangladesh) Limited
11.
Glaxo Smith Kline Bangladesh Limited
12.
Hotel Sarina, Banani, Dhaka
13.
Kader Synthetic Fibers Limited
14.
M.M. Ispahani Group
15.
MSA Spinning Limited
16.
Opex Group
17.
PHP Group
18.
Paxar Bangladesh Limited, EPZ, Savar, Dhaka
19.
Prime Group of Industries
20.
R.M. Group
21.
RAK Ceramic Industries Pvt. Limited
22.
Scholastica Group
23.
Sena Kalyan Sangstha
24.
Shinepukur Holding Co. Limited
25.
Shanta Group, EPZ, Savar, Dhaka
26.
Siemens Bangladesh Limited
27.
Sinha Textile Group
28.
STS Holding (including Apollo Hospitals, Dhaka)
29.
Techno Textile Mills Limited
30.
Youngone Bangladesh Limited, EPZ, Savar, Dhaka & Patenga, Chittagong
31.
AA Synthetic Fibres Limited.
32.
Royal Thai Embassy
33.
Nandan Group
Snapshot of PEOPLES INSURANCE CO LTD (PEOPLE)
OPEN
$56.00
PREVIOUS CLOSE
$55.80
DAY HIGH
$56.90
DAY LOW
$54.70
52 WEEK HIGH
12/6/10 - $115.24
52 WEEK LOW
05/25/11 - $41.50
MARKET CAP
--
AVERAGE VOLUME 10 D
516.4K
EPS TTM
--
SHARES OUTSTANDING
0.0
EX-DATE
04/12/11
P/E TTM
--
DIVIDEND
$0.48
DIVIDEND YIELD
0.86%
K = Thousands M = Millions B = Billions
INCLUDEPICTURE "http://www.bloomberg.com/apps/chart?timeout=10&h=225&w=220&type=gp_line2&range=1y&ticks=PEOPLE:BD&cfg=ChartBuilderVol_bw.xml&img=png" \* MERGEFORMATINET
Our Services Name of the Services
1.
Fire Insurance
2.
Industrial "All Risks" Insurance
3.
Marine Cargo Insurance
4.
Marine Hull Insurance
5.
Motor Insurance
6.
Contractor's "All Risks" Insurance
7.
Erection"All Risks" Insurance
8.
Machinery Breakdown Insurance
9.
Deterioration of Stock Insurance
10.
Boiler & Pressure Vessel Insurance
11.
Burglary & Housebreaking Insurance
12.
Cash-in-transit Insurance
13.
Cash-in-safe Insurance
14.
Cash-on-counter Insurance
15.
Public Liability Insurance
16.
Personal Accident Insurance
17.
Peoples's Personal Accident Insurance
18.
Workmen's Compensation Insurance
19.
Goods-in-transit Insurance
20.
Comprehensive Travel Insurance
21.
Over-seas Medi-claim Insurance
22.
"All Risks" Insurance
23.
Fidelity Guarantee Insurance
24.
Bank Lockers Insurance
AchievementsBusiness & Statistical Information Since 2001 (Figures in Million Taka)
Particulars
2001
2002
2003
2004
2005
2006
2007
Financial Performance
Gross Premium
195.50
212.55
256.43
261.37
259.66
238.68
257.18
Net Premium
135.81
139.60
150.61
145.93
111.62
137.62
163.30
Gross Claim
24.45
23.62
49.80
104.29
55.33
423.24
38.18
Net Claim
19.84
22.11
29.44
37.49
24.50
120.38
23.35
Underwriting Profit / (Loss)
24.46
32.95
33.07
31.88
31.22
(127.54)
0.32
Investment & Other Income
13.55
12.35
12.48
16.86
15.11
21.89
217.39
Net Profit /Loss) befor Tax
36.50
43.92
44.20
47.05
3.27
(144.83)
193.00
Net profit / (Loss) after Tax
29.28
30.02
31.62
32.44
3.27
(141.49)
177.97
Share Capital & Reserve
Paid up Capital
60.00
60.00
60.00
60.00
75.00
150.00
150.00
Shareholders Equity
185.01
198.76
213.82
228.42
204.56
279.58
295.91
Reserve
124.80
138.76
153.82
168.42
129.56
129.58
145.91
Assets
Investment in Shares & Securities
17.41
17.41
18.1
17.83
25.73
25.25
27.62
Cash, FDR & Bank Balance
154.75
163.96
178.53
179.24
121.42
100.28
128.83
Land & Building
174.12
238.83
343.54
496.9
643.49
629.99
490.06
Other Assets
152.45
152.40
127.41
138.20
94.72
103.84
148.69
Total Assets
498.73
572.57
667.58
832.17
885.36
859.36
795.20
Financial Analysis
Dividend in Percentage
26%
27%
25%
25%(stock)
100%(stock)
No Dividend
10%
Earning per share(EPS)
48.8
50.03
52.70
54.07
4.36
-96.55
118.64
Highest/Lowest Market
Price of Share
690/540
675/540
1850/800
800/673
673/270
548/180
Office and Location of Peoples Insurance Company Limited.
Head Office
Peoples Insurance Bhaban (15th Floor), 36, Dilkusha C/A Dhaka-1000, Bangladesh. Phone: 9564166, 7174203-4 Fax: 88-02-9564795 Email: HYPERLINK "mailto:peoples@telnet-bd.com" peoples@telnet-bd.com
ELEPHANT ROAD BRANCH
91, New Elephant Road Dhaka Md. Alauddin Dulal General Manager -II
KAWRAN BAZAR BRANCH
41/1, Kazi Nazrul Islam Avenue (Floor No. 3) Kawran Bazar, Dhaka-1215. Md. Shahnewaz Khan General Manager
Recommendation:
Chapter # 05
5.1 Recommendation
There must be scope for further developments:
Introducing flexible working hours for the workers as that they can look after their personal problem during these flexible hours.
Building a team of committed workers who strongly believe in the organizational goal.
Designing insurance policies that include strict disciplinary action against all bad activities.
Making the planning process more clear of the strategies, goals, action and operational plans in Peoples Insurance Company Limited.
Scanning the national and international environmental for the competitive edge and technological advance in Peoples Insurance Company Limited.
Conclusion
Peoples Insurance Company Limited is one of the leading insurance institutions in Bangladesh. Day by day Peoples Insurance Company is going upward. Peoples Insurance Company Limited is established in 1985.
When we were doing this assignment, we got so much practical knowledge. This practical knowledge helps us lot to know about overall insurance company activities.
Bibliography
The information and data provided by the Peoples Insurance Company Limited is mainly used for this assignment. Basically Bibliography means to write down some book’s, web-sites & other name that help for doing this report but here we tried to write down our theoretical and practical knowledge along with the information of provided by Peoples Insurance Company Limited. The references which are used for prepare the report is given below:
Books
• M. N. Mishra (Insurance Principles and Practice)
• Banglapedia
• Peoples Insurance Company Limited Annual Report 2010
Internet Sources
• HYPERLINK "http://www.Scribd.com" www.Scribd.com
• HYPERLINK "http://www.peoplesinsurancebd.com" www.peoplesinsurancebd.com
• HYPERLINK "http://www.investing.businessweek.com" www.investing.businessweek.com
Assignment on Insurance (part 3)
Government
S/L
Client's Name
1
Jibon Bima Corporation
Non Government
S/L
Client's Name
1
National Life Insurance Company Ltd
2
Bangladesh Gen. Ins. Co. Ltd
3
Peoples Insurance Co. Ltd.
4
United Insurance Co. Ltd.
5
Green Delta Ins. Co. Ltd.
6
Progati Insurance Limited
7
Eastern Insurance Co. Ltd.
8
Eastland Insurance Co. Ltd.
9
Karnaphuli Insurance Co. Ltd.
10
Delta Life Insurance Co. Ltd.
11
Janata Insurance Co. Ltd
12
Phoenix Insurance Co. Ltd
13
American Life Insurance Co.
14
Federal Insurance Co. Ltd
15
Reliance Insurance Ltd.
16
Rupali Insurance Co. Ltd.
17
Purabi Gen. Insurance Co. Ltd.
18
Sandhani Life Ins. Co. Ltd.
19
Bangladesh Co-operative Ins. Ltd.
20
City Gen. Insurance Co. Ltd.
21
Provati Insurance Co. Ltd
22
Prime Insurance Co. Ltd
23
Meghna Insurance Co. Ltd.
24
Meghna Life Insurance Co. Ltd
25
Pioneer Insurance Co. Ltd
26
Mercantile Insurance Co. Ltd
27
Bangladesh National Ins. Co. Ltd.
28
Northern Gen. Ins. Co. Ltd.
29
Homeland Life Ins. Co. Ltd.
30
Golden Life Insurance Ltd.
31
Nitol Insurance Co. Ltd
32
Standard Insurance Ltd.
33
South Asia Ins. Co. Ltd.
34
Paramount Insurance Co. Ltd
35
Cotinental Insurance Limited
36
Agrani Insurance Co. Ltd
37
Islami Insurance Bangladesh Ltd
38
Islami Commercial Ins. Co. Ltd.
39
Global Insurance Ltd.
40
Sonar Bangla Insurance Ltd
41
Express Insurance Limited
42
Asia Insurance Ltd.
43
Republic Insurance Company Ltd.
44
Crystal Insurance Company Ltd.
45
The Loyeds Insurance Co. Ltd
46
Sunflower Insurance Co. Ltd.
47
Union Insurance Co. Ltd.
48
Asia Pacific Gen. Ins. Co. Ltd.
49
Progressive Life Ins. Co. Ltd.
50
Desh Gen. Ins. Co. Ltd.
51
Takaful Islami Insurance Ltd.
52
Fareast Islami Life Ins. Co. Ltd
53
Prime Islami life Insurance Co. Ltd
54
Popular Life Insurance Co. Ltd.
55
Padma Islami Life Insurance Ltd.
56
Pragati Life Insurance Ltd.
57
Rupali Life Insurance Co. Ltd.
58
Sun Life Insurance Co. Ltd.
59
Baira Life Insurance Co. Ltd.
Bangladesh Insurance Association
Bangladesh Insurance Association was formed on 25 May 1988 under the Companies Act 1913. It is registered with the Registrar of Joint Stock Companies and has 30 members. It aims at promoting, supporting and protecting the interests and welfare of the member companies.Surveyors and insurance agents occupy a prominent position in the insurance market of Bangladesh. The surveyors are mainly responsible for surveying and assessing general insurance losses and occasionally, for valuation of insurance properties, while the agents work to procure both life and general insurance business against commission. The system of professional brokers has not yet developed in Bangladesh. However, it is a common practice of the insurers to engage salaried development officers for promotion of their insurance business.
Bangladesh Insurance Academy
Bangladesh Insurance Academy (BIA) established in 1973 in Dhaka by the government of Bangladesh to impart training to insurance professionals and others taking up insurance as a career. It is an autonomous body attached to the ministry of commerce. The management of the academy is vested in a board of governors formed by the government. The academy conducts various training programmes for personnel in the insurance industry, arranges seminars, symposiums and conferences on issues relating to the insurance business. The academy started functioning in early 1974 with 12 employees.
TOP INSURANCE COMPANIES IN BANGLADESH
Sadharan Bima CorporationSadharan Bima Corporation emerged on 14th May, 1973 under the Insurance Corporation Act. (Act. No.VI) of 1973 as the single state owned organization to deal with all classes of General Insurance & Re-insurance business emanating in Bangladesh.In the pre-liberation days there were as many as 49 privately owned insurance companies underwriting general insurance business along with one central Govt. run-organization, namely, Pakistan Insurance Corporation. After liberation the insurance industry was nationalized vide P.O.No. 95 of 1972.Jiban Bima Corporation (JBC)Jiban Bima Corporation established on 14 May 1973 under the Insurance Corporation Act 1973 with an authorized capital of Tk 200 million divided into 2 million ordinary shares of Tk 100 each. The paid up capital of the corporation is Tk 50 million fully subscribed by the government. The corporation is engaged in life insurance business under the provisions of the Insurance Act 1938, Insurance Rules 1958, Insurance Corporation's Rules 1977, and related other laws enforceable in Bangladesh. JBC is working among the people of Bangladesh with two basic objectives: firstly, to cover the risks and raise savings habits among the people and secondly, create funds for the country’s economic development through innovative life insurance schemes.American Life Insurance Company Alico Bangladesh started full service branch operations in Bangladesh on 15 January 1974 and has since then been marketing individual and group life insurance products under the Insurance Act 1938, Insurance Rules 1958, and other applicable laws. American Life Insurance Company Bangladesh runs its business through its agency offices scattered mostly in big cities such as Dhaka, Chittagong and Khulna. Over 2700 career agents are working for the company. The company has a trained and dedicated work force of 223 employees in Bangladesh.
ASSIGNMENT ON INSURANCE (PART 2)
Chapter # 1
1.1 Introduction
Insurance is a system of spreading the risk of one to the shoulders of many and which is a legal contract whereby the insurers, on receipt of a consideration known as premium, agree to indemnify the insured against losses arising out of certain specified unforeseen contingencies or perils insured against.
Insurance is a written contract, taken with the insuring company that transfers the risk of loss to the insurer according to the terms of the contract. However, not all risks are insurable. If an insurance company would have difficulty calculating the likelihood that a loss would occur because of some risk, it is reluctant to insure against that risk. Risks of this type are generally called uninsurable risks. TYPES OF INSURANCE • Home insurance • Health • Disability • Casualty • Life • Property • Liability • Credit • Insurance financing vehicles
Marine is the oldest form of insurance, which was introduced in Northern Italy sometime between the 12th and 13th century. But the insurance business got an institutional shape in the United Kingdom after establishment of Lloyds Insurance Company in late 17th century. The coffee houses of London played a vital role in developing trade and commerce in the UK. The merchants and traders used to gather in these coffee houses for their business transactions. Edward Lloyd opened one such coffee house in 1680. In late 17th century this coffee house virtually turned into the most famous Lloyds Insurance Company of the UK. During the British rule, some insurance companies started functioning in India. These companies were of various origins including British, Australian and also Indian. After independence, Bangladesh government nationalized the insurance industry in 1972 by the Presidential Order No 95, known as the Bangladesh Insurance (Nationalization) Order 1972. A total of 60 insurance companies are operating in Bangladesh till date. Of these companies, 57 are private, two state-owned and one is foreign. Insurance Directorate, under the Ministry of Commerce, is the regulatory-body of the country's insurance sector.
1.2 Background of the Report
This report has been prepared as a requirement of the Principal of Insurance course. The report was based upon the overall insurance activities in Bangladesh, I was duly approved by our Course Teacher Tazrina Floora. This report will help us know about the overall insurance business in Bangladesh.
Insurance is a system of spreading the risk of one to the shoulders of many. It can be defined as a co-operative device to spread the loss caused by a particular risk over a number of persons who are exposed to it and who agree to ensure themselves against that risk. It is a contract whereby the insurers, on receipt of a consideration known as premium, agree to indemnify the insured against losses arising out of certain specified unforeseen contingencies or perils insured against. It can play an important role in a country’s economy. It is an old form of financial practice of sharing risk, which was introduced in this area in mid-18th century.
1.3 OBJECTIVES OF THE STUDY
The objective of the report is to make us known the practical situation of Peoples Insurance Company overall activities and prepare us to face the complex situation of insurance industry in this country and international. The objectives also represents here chronologically:
To know about insurance business.
Generating an overview of the current insurance scnario in Bangladesh
To know the financial and money market business like insurance.
How it maintain the insurance all over Bangladesh.
To know about the money and credit policies in Bangladesh.
To know the strategy of making relationship with internal and external customer.
To develop our skill about insurance policy.
To survive with the current market situation.
To observe the practice of modern technology in business organization.
Practical knowledge about transaction.
To know about the inflow.
1.4 SCOPE OF THE STUDY
Since Peoples Insurance Company Limited perform various tasks in the insurance business. The survey of the study has been conducted on overall insurance activities. Most of the information is collected from direct questionnaires and other techniques. The analyzing and interpretations of the report have been done with the help of academic teacher in the University Campus.
The scope of the project report is given below:
The back ground of the organization (Peoples Insurance Company Limited)
The different insurance activities and other efforts.
The organization structure and organizing process for effectiveness.
And the other areas of operation in organization.
1.5 Methodology
The project report has been written on the basis of information collected from primary as well as secondary sources. The primary information has been collected from the personnel, in this case WE have used physical attendance to get positive, negative both sides of the project. Then WE got the relevant data for the required project. To carry out the proposed study, data have been collected from two sources: Primary and secondary sources.
Primary data: Primary data for this study have been collected through a well-prepared questionnaire, which contains both open and close-ended questions. Several ways of collecting data have been used like, face-to-face interviews with the respondents, questionnaire surveyed.
Secondary data: Secondary data again are of two kinds, internal and external. Internal secondary data has been collected from the organization Peoples Insurance Company Limited (PICL) and from its brochures and annual reports of different years. External secondary data gathered from various outlets, research reports, and literature’s /magazines, and the internet and internship reports of other organizations.
Secondary sources of data will be used for data requirements of the report.
Secondary sources of data: Use Internet and different articles published in the journals & magazines have been used.
Secondary Sources are:
Textbooks on insurance
Insurance Journals.
Reference books on insurance.
Annual Reports of BGIC.
Internet Books.
Annual report of insurance companies
1.6 Limitations of the Report (Assignment)
Every Assignment (Project and Thesis) has some limitation. In these thesis paper there are lot of limitation are discuss below:
Due to time and cost restriction, the study in concentrated in selected areas.
Difficulty in collecting information
Lack of experience of the researcher and luck of cooperation from the respondents.
This project paper is submitted on theoretical prospective.
The study completely depends on official records, question answer, observation, face to face viva and annual reports.
Peoples Insurance Company Limited, they are busy and they could not give us enough time for discussion about various topes.
Lack of proper information in the websites of the insurance company.
Lack of necessary information in the journals and official publications of insurance companies.
Inexperience and time constraint is the limitation restricting this report from being more detailed.
Secondary data has been collected from the hand books, magazines, which may biased to the insurance business.
Chapter # 02
Insurance Industry Overview
2.Background of insurance business in Bangladesh
2.1 Origin of insurance in Bangladesh
Resistance against colonial or autocratic regimes in the third world has often been led by educated intelligentsia inspired by western ideas of nationalism and democracy has played a dominant role. Most victorious nationalist movements have been in later years reneged from their earlier commitments and few developing countries to day are nationalist, socialist or democratic. But that is a different story.
When the Awami League cane to power in Bangladesh and the peoples party in Pakistan in 1972.It was inevitable that nationalization a wide scale would take place, for both parties had flaunted socialism as part of their political rhetoric. In Pakistan the administrative mechanism for nationalization of banking, insurance and some industries was carefully worked out by the bureaucracy under political leadership, and the takeover in a feel swoop passed of smoothly. Heads of insurance companies, for instance, where invited to tea at a Karachi Hotel. Where they told that while they were having teas the head offices of their companies were being sealed and Government appointed administrators were being put in charge. This was done to ensure that the assets of the companies remained intact and no tempering with accounts, records and documents was possible.
In Bangladesh an effective government machinery did no exist in the chaotic conditions obtaining an independence following a bitter and brutal war industries was taken over without any inventory, and erstwhile owners ,who were being dispossessed, were allowed to administer their mills and factories till statutory corporations were established.
3.2 Historical Background of insurance Industry in Bangladesh
Insurance is not new business in Bangladesh. Almost a century back, during British rule in India, some insurance companies started transacting business, both life and general, in Bangal.Insurance business gained momentum in East Pakistan during 1947-1971, when 49 insurance companies transacted both life and general insurance schemes. These companies were of various origins like British, Australian, Indian, West Pakistan and local. Ten insurance companies had their head offices in East Pakistan, 27 in West Pakistan, and rest elsewhere in the world. These were mostly limited liability companies. Some of these companies were specialized on dealing in a particular class of business, while others were composite companies that dealt in more than one class of business.
The Government of Bangladesh nationalized insurance industry in 1972 by the Bangladesh Insurance (Nationalization) Order 1972.By virtue of this order, saves and except postal life insurance and foreign life insurance companies, all 49insurance companies and organizations transacting insurance business in the country were placed in the sector under fie operations. These operations were :the Jatiya Bima Corporation,Tista Bima Corporation,Karnafuli Bima Corporation,Rupsa Jibon Bima Corporation and Surma Jibon Bima Corpporation.The Jatiya Bima Corporation was an apex corporation only to supervise and control the activities of the other insurance corporations which were responsible for underwriting.Tista and Karnafuli Bima Corporation were for general insurance and Rupsa and Surma for life insuance.The specialist life insurance companies or for a life portion of a composite company joined the Rupsa and Surma corporations while specialist general insurance companies or the general portion of a composite company joined The Tista and Karnafuli corporations.
The basic idea behind the formation of four underwriting corporations, two in each main branch of life and general, was to encourage competition even under a nationalized system. But the burden of administrative expenses incurred in maintaining two corporations in each front of life and general and an apex institution at the top outweighed the advantages of limited competition. consequently, on 14 May 1973,a restructuring was made under the Insurance Corporations Act 1973. Following the Act, in place of five corporations the government formed two: the SADHARAN BIMA CORPORATION for general business, and JIBAN BIMA CORPORATION for life business.
The postal life insurance business and the life insurance business by foreign companies were still allowed to continue as before .In reality, however, only the AMERICAN LIFE INSURANCE COMPANY continued to operate in the life sector for both new business and servicing, while three other foreign life insurance continued to operate only for servicing their old policies issued during Pakistan days. Postal life maintained its business as before.
After1973, general insurance business became the sole responsibility of the Sadharan Bima Corporation. Life insurance business was carried out by the Jibon Bima Corporation, the American Life insurance Company, and the Postal Life Insurance Department until 1994, when a change was made in the structure arrangement to keep place with the new economic trend of liberalization.
The insurance corporations Act1973 were amended in 1984 to allow insurance companies in the private sector to operate side by with Sadharan Bima Corporation and Jiban Bima Corporation. The Insurance Corporations Amendment Act 1984 allowed floating of insurance companies, both life and general, in the private sector subject to certain restrictions regarding business operations and reinsurance. Under the new act, all general insurance business emanating from the public sector were reserved for the state owned Sadharan Bima Corporation, which could also underwrite insurance business emanating from the private sector. The Act of 1984 made it a requirement for the private sector insurance companies o obtain 100% reinsurance protection from the Sadharan Bima Corporation.This virtually turned Sadharan Bima Corporation into a reinsurance organization, in addition to its usual activities as direct insurer.Sadharan Bima Corporation itself had the right to reinsure its surplus elsewhere outside the country out after exhausting the retention capacity of the domestic market. Such restrictions aimed at preventing outflow of foreign exchange in the shape of reinsurance premium and developing are insurance market within Bangladesh. The restriction regarding business placement affected the interests of the private insurance companies in many ways. The restrictions were considered not congenial to the development of private sector business in insurance. Two strong arguments were put forward to articulate feelings:
Since the public sector accounted for about 80% of the total premium volume of the country, there was little premium left for the insurance companies in the private sector to survive. In this context, Sadharan Bima Corporation should not have been allowed to compute with the private sector insurance companies for the meager premium (20%) emanating from the private sector;
Being a competitor in the insurance market, Sadharan Bima Corporation was hardly acceptable as an agency to protect the interest of the private sector insurance companies and should not have retained the exclusive right to reinsure policies of these companies. The arrangement was in fact, against the principle of laissez faire.
Private sector insurance companies demanded withdrawal of the above restrictions so that they could:
Underwrite both public and private sector insurance business in competition with the Sadharan Bima Corporation, and
The government modified the system through promulgation of the Insurance Corporation (Amendment) Act1990.The changes allowed private sector insurance companies to underwrite 50% of the insurance business emanating from the public sector and to place up to 50% of their reinsurance with any reinsure of their choice, at home or aboard, keeping the remaining for placement with the Sadharan Bima corporation.
4. Present position of insurance business in Bangladesh
In Bangladesh, the Insurance business, after and early stage of dislocation, adventure and experimentation through half a century has now being established as a nascent industry distributed between the public and private sectors. Insurance business evolved in the Indian subcontinent late in nineteenth century when several business companies started their business and a few Christian missionaries began to operate mutual funds to serve their own community members. From Bangladesh perspective insurance business was not a promising sector in its early age but it is getting it’s pace day by day with the growth of overall economic condition of the country.
The privatization policy adopted in the 1980s paved the way for a number of insurers to emerge in the private sector. This resulted in a substantial growth of premium incomes, competition, improvement in services, and introduction of newer types of business in wider fields hitherto untapped.
Up to 2000, the government has given permission to 19 general insurance companies and 10 life insurance companies in the private sector. Insurers of the country now conduct almost all types of general and life insurance, except crop insurance and export credit guarantee insurance, which are available only with the Shadharan Bima Corporation. Numerous institutions, associations and professional groups work to promote the development of insurance business in Bangladesh. Prominent among them is the Bangladesh Insurance Association (formed on 25 May 1988) having 30 members. It aims at promoting, supporting and protecting the interests and welfare of the member companies. Another example is Bangladesh insurance academy.
Surveyors and insurance agents occupy a prominent position in the insurance market of Bangladesh. The system of professional brokers has not yet developed in Bangladesh. A total of 60 insurance companies are operating in Bangladesh till date. Of these companies, 57 are private, two state-owned and one is foreign. Insurance Directorate, under the Ministry of Commerce, is the regulatory-body of the country's insurance sector. At present there are 44 general insurance companies running in Bangladesh. Many other private companies are about to commence business.
HYPERLINK "http://www.daffodil-bd.com/index.php?option=com_content&view=article&id=227:insurance&catid=46:primary-data&Itemid=117" Insurance Companies in Bangladesh
Government
S/L
Client's Name
1
Jibon Bima Corporation
Non Government
S/L
Client's Name
1
National Life Insurance Company Ltd
2
Bangladesh Gen. Ins. Co. Ltd
3
Peoples Insurance Co. Ltd.
4
United Insurance Co. Ltd.
5
Green Delta Ins. Co. Ltd.
6
Progati Insurance Limited
7
Eastern Insurance Co. Ltd.
8
Eastland Insurance Co. Ltd.
9
Karnaphuli Insurance Co. Ltd.
10
Delta Life Insurance Co. Ltd.
11
Janata Insurance Co. Ltd
12
Phoenix Insurance Co. Ltd
13
American Life Insurance Co.
14
Federal Insurance Co. Ltd
15
Reliance Insurance Ltd.
16
Rupali Insurance Co. Ltd.
17
Purabi Gen. Insurance Co. Ltd.
18
Sandhani Life Ins. Co. Ltd.
19
Bangladesh Co-operative Ins. Ltd.
20
City Gen. Insurance Co. Ltd.
21
Provati Insurance Co. Ltd
22
Prime Insurance Co. Ltd
23
Meghna Insurance Co. Ltd.
24
Meghna Life Insurance Co. Ltd
25
Pioneer Insurance Co. Ltd
26
Mercantile Insurance Co. Ltd
27
Bangladesh National Ins. Co. Ltd.
28
Northern Gen. Ins. Co. Ltd.
29
Homeland Life Ins. Co. Ltd.
30
Golden Life Insurance Ltd.
31
Nitol Insurance Co. Ltd
32
Standard Insurance Ltd.
33
South Asia Ins. Co. Ltd.
34
Paramount Insurance Co. Ltd
35
Cotinental Insurance Limited
36
Agrani Insurance Co. Ltd
37
Islami Insurance Bangladesh Ltd
38
Islami Commercial Ins. Co. Ltd.
39
Global Insurance Ltd.
40
Sonar Bangla Insurance Ltd
41
Express Insurance Limited
42
Asia Insurance Ltd.
43
Republic Insurance Company Ltd.
44
Crystal Insurance Company Ltd.
45
The Loyeds Insurance Co. Ltd
46
Sunflower Insurance Co. Ltd.
47
Union Insurance Co. Ltd.
48
Asia Pacific Gen. Ins. Co. Ltd.
49
Progressive Life Ins. Co. Ltd.
50
Desh Gen. Ins. Co. Ltd.
51
Takaful Islami Insurance Ltd.
52
Fareast Islami Life Ins. Co. Ltd
53
Prime Islami life Insurance Co. Ltd
54
Popular Life Insurance Co. Ltd.
55
Padma Islami Life Insurance Ltd.
56
Pragati Life Insurance Ltd.
57
Rupali Life Insurance Co. Ltd.
58
Sun Life Insurance Co. Ltd.
59
Baira Life Insurance Co. Ltd.
Bangladesh Insurance Association
Bangladesh Insurance Association was formed on 25 May 1988 under the Companies Act 1913. It is registered with the Registrar of Joint Stock Companies and has 30 members. It aims at promoting, supporting and protecting the interests and welfare of the member companies. Surveyors and insurance agents occupy a prominent position in the insurance market of Bangladesh. The surveyors are mainly responsible for surveying and assessing general insurance losses and occasionally, for valuation of insurance properties, while the agents work to procure both life and general insurance business against commission. The system of professional brokers has not yet developed in Bangladesh. However, it is a common practice of the insurers to engage salaried development officers for promotion of their insurance business.
Bangladesh Insurance Academy
Bangladesh Insurance Academy (BIA) established in 1973 in Dhaka by the government of Bangladesh to impart training to insurance professionals and others taking up insurance as a career. It is an autonomous body attached to the ministry of commerce. The management of the academy is vested in a board of governors formed by the government. The academy conducts various training programmes for personnel in the insurance industry, arranges seminars, symposiums and conferences on issues relating to the insurance business. The academy started functioning in early 1974 with 12 employees.
Assignment on Insurance Part-1
Assignment
On
Overall Activities of Peoples Insurance Company Limited
Submitted To:
Tazrina Floora
Lecturer
Stamford University Bangladesh.
Submitted By:
Name: Md. Rafiuddin Biplab
ID No. BBA 042 13331
Name: Sadia Ahmed
ID No. BBA 042 13339
Name: Rownak Zahan
ID No. BBA 042 13345
Name: Mithun Kumar Saha
ID No. BBA 042 13358
Name: Md. Shahriar Abir
ID No. BBA 042 13370
Name: Mehedi Masud
ID No. BBA 042 13384
Date of Submission: 02/08/2011
LETTER OF TRANSMITTAL
01st August, 2011
Tazrina Floora
Senior Lecturer
Department of Business Administration
Stamford University Bangladesh
Dhanmondi, Dhaka
Subject: Submission of Assignment Report.
Dear Madam,
It gives us immense pleasure in presenting here with the assignment on “Peoples Insurance Company Limited”, which was assigned to us as partial fulfillment of the ‘Principle of Insurance’ course requirement. The Assignment gave the opportunity to have an insight on the insurance practice and its performance all over the organ-ization of Popular Insurance Company limited in Bangladesh. We have been tried to provide a brief discussion on overall performance of the company. We have tried heart and soul to make the report attractive, effective and useful.
The Assignment was very much valuable to us as it helped us to gain experience from the practical field. We are grateful to you for providing us this opportunity of gaining such practical experiences and to know how theoretical knowledge is applied in the real world.
With best regards,
Sincerely
Md. Rafiuddin Biplab (BBA 042 13331)
Sadia Ahmed (BBA 042 13339)
Rownak Zahan (BBA 042 13345)
Mithun Kumar Saha (BBA 042 13358)
Md. Shahriar Abir (BBA 042 13370)
Mehedi Masud (BBA 042 13384)
ACKNOWLEDGEMENT
For the successful accomplishment of this report, first we would like to thank the almighty. Next, with warm gratitude from the deepest of our heart we would like to remember all of them who have helped us from every side in accomplishing this report.
We feel very much lucky that we got a fabulous opportunity to carry on our Assignment on such a notable Peoples Insurance Company Limited. This has been working as the overall insurance business in Bangladesh since 1985.
We would like to thanks to Peoples Insurance Company Limited for providing the opportunities for obtained the information of overall business of Insurance. Besides these helps us for different assistance like library facilities, answering the questionnaires, annual report and others.
We would like to admit our cordial gratitude to our honorable Teacher Tazrina Floora, the senior lecturer of BBA, Stamford University Bangladesh for guiding us from start to end in preparing this report. The final accomplishment of this work would not have been possible without her immense assistance and care.
Last of all we would like to acknowledge the Department of Business Administration, Stamford University for providing different facilities like Library and others. Stamford University helps for acquiring the practical knowledge in the field which we have study theoriticals in course.
In essence, we would like to say that project and thesis program on overall insurance practice of Peoples Insurance Company Limited helped us largely in acquiring useful insights about highly utilizing our academic knowledge in terms of practical orientation. Moreover, as our project was of very much practical and early effectual in nature, the assistance from all our guides made us able to apply easily the concepts and tools into practical field. Our efforts as well as those of our supervisors will be fruitful if this work is brought into effect.
Acronyms
PICL = Peoples Insurance Company Limited
BIA = Bangladesh Insurance Academy
Executive Summary
Peoples Insurance Company Limited is one of the leading insurance organizations of Bangladesh. It is a General Insurance company. Insurance is a form of contract or agreement under which one party agrees in return for a consideration to pay an agreed amount of money to another party to make good a loss, damage or injury to something of value in which the insured has a pecuniary( it means economic) interest as a result of some uncertain event. It is a device by which loss is likely to be caused by an uncertain event is spread over a number of persons who are exposed to it and who propose to insure themselves against such an event. That’s why there is very demand of the insurance all over the world. There are many social and economic values of insurance, but perhaps the greatest value lies in the many benefits flowing from the risk in Society.
Peoples Insurance Company Limited (PICL) is a first private insurance company in Bangladesh. PICL was established in 1985. Date of Incorporation and Obtained Certificate for Commen- cement of Business is 31 March 1985. PICL is a reliable insurance company in the insurance landscape in Bangladesh. There are different insurance policies of PICL and those are Fire Insurance, Industrial "All Risks" Insurance, Marine Cargo Insurance, Marine Hull Insurance, Motor Insurance, Contractor's "All Risks" Insurance, Erection"All Risks" Insurance, Machinery Breakdown Insurance, Deterioration of Stock Insurance, Boiler & Pressure Vessel Insurance, Burglary & Housebreaking Insurance, Cash-in-transit Insurance, Cash-in-safe Insurance, Cash-on-counter Insurance, Public Liability Insurance, Personal Accident Insurance, Peoples's Personal Accident Insurance, Workmen's Compensation Insurance, Goods-in-transit Insurance, Comprehensive Travel Insurance, Over-seas Medi-claim Insurance, "All Risks" Insurance, Fidelity Guarantee Insurance, Bank Lockers Insurance. Those Policies are available in Peoples insurance company Limited. Besides different new policies will be launch soon.
Insurance company is providing economic security to the clients as well as creating long term capital in the market.This is a very important factor for the socio economic development of Bangladesh. Peoples Insurance Company was established with a vision that is to reach at zenith point of providing quality service and hence achieving highest corporate goal and customer satisfaction. Our slogan is “manush manusher Janna”.
TABLE OF CONTENT
Chapter # 01
1.1 Introduction
1.2 Background of the Study
1.3 Objective of the study
1.4 Scope of the study
1.5 Methodology
1.6 Limitation of the Assignment
Chapter # 02
2.1 Industry Overview
2.2 Our Organization
2.3 Organizational History
2.4 Background, Vision and Mission
Chapter # 03
3.1 All Product Details
Chapter # 04
4.1 Performance Analysis
4.1.1 Balance Sheet
4.1.2 Five years Line Chart
4.2 SWOT Analysis
Chapter # 05
5.1 Recommendation
5.2 Conclusion
5.3 Bibliography
Wednesday, 27 January 2016
INTERNSHIP REPORT ON CREDIT RISK MANAGEMENT OF SIBL(chapter3)
OF
Al- Arafa Islami Bank Ltd
Credit risk is one of the major risks faced by the bank. This can be described as potential loss arising from the failure of a counter party to perform as per contractual agreement with the bank. The failure may result from unwillingness of the counter party or decline in his/her financial condition. Therefore, bank's credit risk management activities have been designed to address all these issues. The bank has an investment (Credit) risk management committee at head office. The committee reviews the investment risk issues on monthly basis. The bank has segregated the investment approval, investment administration, investment recovery and legal authority. The bank has
INTERNSHIP REPORT ON CREDIT RISK MANAGEMENT OF SIBL(chapter2)
&
Overview of the Bank
With the objective of achieving success here & hereafter by pursuing the way directed by Allah and the path shown by His Rasul (SM), Al Arafah Islami Bank Ltd was established (registered) as a private limited company on 18 June 1995. The inaugural ceremony took place on 27 September 1995. The authorized capital of the Bank is Tk.15000.00 million and the paid up capital is Tk. 8343.24 million as on 31.12.2013. Renowned Islamic Scholars and pious businessmen of the country are the sponsors of the Bank. 100% of paid up capital is being owned by indigenous shareholders.
INTERNSHIP REPORT ON CREDIT RISK MANAGEMENT OF SIBL(CHAPTER-1)
Introduction
&
Organization Introduction:
Credit management is a vital part of any financial institution. Institution’s existence depends on good credit management. It must be an ongoing process that would enable the firm to manage the loan portfolio proactively and earn satisfactory return to the shareholders. The current world is very dynamic and fast changing economy is pressurizing the market players to move very quickly. Every financial institution in this situation is facing various level of difficulty to adjust with various
ASSIGNMENT ON HRM ABOUT AN ORGANIZATION EMPLOYEE SUPERVISION
Electro Mechanical Control Service (eMcS) is an Engineering organization established in 2004, embraced by a group of professional Engineers. This organization is involved in the electro-mechanical design, consultancy and supervision. eMcS extended its activities throughout Bangladesh due to its tremendous performance. The main fields of these activities are- Central Air Condition System, Fire Detection and Protection System, CCTV or Security System, Plumbing System, Electrical System, Solar System, Clean room, Access Control System, Green Building
EXECUTIVE SUMMERY OF AN INTERNSHIP REPORT
On
Credit Management & Performance Analysis
Of
Jamuna Bank Limited
Internship report on credit mgt of JBL(CHAP_2)
JOB RESPONSIBILITIES
AND
OBSERVATION
JOB RESPONSIBILITIES AND OBSERVATION
THE PROJECT CREDITMANAGEMENT OFJAMUNA BANK LIMITED
THE PROJECT CREDIT
MANAGEMENT
OF
JAMUNA BANK LIMITED
Internship program is the most important period for a BBA student. The duration of internship program is 3 months, which carries a best learning process to know about the organization and cope up the environment in such a way like professional employees. The experience that got by an intern during the internship period will make them more smart and professional in their future job sector. I was started my internship at Jamuna Bank Limited, Adabar Branch from 15th May 2015 and its end in 15th august 2015.
I have worked in various Department of Jamuna Bank Ltd, Adabar Branch. In this report, I will try to make an overall analysis on all activities of Jamuna Bank Ltd specially focuses on credit Management department.
Report on credit management of jamuna bank limited(chapter_1)
THE ORGANIZATION
1.1 Introduction
Jamuna Bank Ltd. is a third generation bank in Bangladesh. It provides commercial banking services in the Bangladesh. It is playing an important role to develop the business sector. The growth of this bank is very good. Its motto is to provide a prompt and quick service to the clients. Jamuna Bank Ltd. has implemented well structured online banking systems that make it easier to provide prompt services to the customer. The bank primarily engages in corporate banking, trade finance, project finance, retail banking, small enterprise finance, consumer finance, and syndication. Its range of service offerings include cash management services, payments and clearings, safe deposit locker services, employee benefits, collection services, treasury services, asset management, services and SWIFT for foreign trade.
1.2 History
Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994 with its Head Office at Chini Shilpa Bhaban, 3, Dilkusha C/A, Dhaka-1000. The Bank started its operation from 3rd June 2001.
Jamuna Bank Limited is a highly capitalized new generation Bank with an Authorized Capital and Paid-up Capital of Tk.10000 million and Tk.4488 million respectively. The Paid-up capital has been raised to 840 million and the total equity of the bank stands at 8325 million as on December 31, 2012.
JBL undertakes all types of banking transactions to support the development of trade and commerce of the country. JBL's services are also available for the entrepreneurs to set up new ventures and BMRE of industrial units. Jamuna Bank Ltd. the only Bengali named new generation private commercial bank was established by a group of winning local entrepreneurs conceiving an idea of creating a model banking institution with different outlook to offer the valued customers, a comprehensive range of financial services and innovative products for sustainable mutual growth and prosperity. The sponsors are reputed personalities in the filed of trade, commerce and industries. The Bank is being managed and operated by a group of highly educated and professional team with diversified experience in finance and banking. The Management of the bank constantly focuses on understanding and anticipating customers needs. The scenario of banking business is changing day by day, so the bank's responsibility is to device strategy and new products to cope with the changing environment. Jamuna Bank Ltd. has already achieved tremendous progress within only twelve years. The bank has already ranked at top of the quality service providers & is known for its reputation.
Jamuna Bank Ltd. offers different types of Corporate and Personal Banking Services involving all segments of the society within the purview of rules and regulations laid down by the Central Bank and other regulatory authorities. As per the provisions of Bangladesh Bank license, the Bank has offered initially its shares to public by Pre - IPO and subsequently sold shares to the public through IPO in the year 2004. The shares of the Bank are listed with both Dhaka Stock Exchange Ltd. & Chittagong Stock Exchange Ltd.
1.3 Mission and Vision
Mission
The bank is committed to satisfy diverse need of its customers through an array of products at a competitive price by using appropriate technology and providing timely service so that a sustainable growth, reasonable return and contribution to the development of the country can be ensure with a motivated and professional workforce.
Vision
To become a leading banking institution by playing a significant role in the development of the country
1.4 Objectives of JBL
• To establish relationship banking and improve service quality through development of Strategic Marketing Plans.
• To remain one of the best banks in Bangladesh in terms of profitability and assets quality.
• To ensure an adequate rate of return on investment.
• To keep risk position at an acceptable range (including any off balance sheet risk).
• To maintain adequate liquidity to meet maturing obligations and commitments.
• To pursue an effective system of management by ensuring compliance to ethical norms, transparency and accountability at all levels.
1.5 Core Values
• Place customer interest and satisfaction as first priority and provide customized banking products and services.
• Value addition to the stakeholders through attaining excellence in banking operation.
• Contribute significantly for the betterment of society.
• Ensure higher degree of motivation and dignified working environment for our human capital and respect optimal work-life balance.
• Committed to protect the environment and go green.
• Employees of JBL share certain common values, which helps to create a JBL culture
• The client comes first.
• Search for professional excellence.
• Quick decision‐making.
• Flexibility and prompt response.
1.6 Management
JBL is managed by highly professional people. The present Managing Director of the Bank is a forward looking senior banker having decades of experience and multi discipline of knowledge to his credit both at home and abroad. He is supported by an educated and skilled professional team with diversified experience in finance and banking. The management of the bank constantly focuses on the understanding and anticipating customers’ needs and offer solution thereof. Jamuna Bank Limited has already achieved tremendous progress within a short period of its operation. The Bank is already ranked as one of the quality service providers and known for its reputation.
1.7 Ownership structure
Leading industrialists of the country having vast experience in the field of trade and commerce own 52.48% of the share capital and the rest n held by the general public. JBL’s board currently consists of 19 directors. Authorized capital is tk.4000 million and paid up capital is tk.2230 million on 2010.
1.8 Product/Service Offerings
The Bank has a collection of mode that prepared financial products and services. Such products are based on Monthly Savings Schemes, Consumer Credit Schemes, Lease Finance and Personal Loan for Women and Shop Finance Scheme etc.Jamuna Bank Ltd, also familiar with Q-cash ATM cards for its valued customers providing 24 hours banking services through Debit Cards.JBL offers the following services to valued customer. The Bank is providing different types of services. Some of them are mentioned in below:
Deposit Schemes
Remittance and Collection
Import and Export handling and Finance Loan Syndication
Project Finance
Investment Banking
Lease Finance
Hire purchase
Personal Loan for Woman
24-hours Banking: Q-Cash ATM facility Islamic Banking
Corporate Banking
Consumer Credit Scheme
International Banking
1.8.1 Islami Banking Branch
In the year 2004, Jamuna Bank Limited opened another Islamic banking branch at Jubilee Road, Chittagong on November 27, 2004. The already existing Nayabazar Islamic Banking Branch started its operations from October 25, 2003, the total Islamic banking branches stands at 02 (Two). The operational performance of the branches as on 31-12-2008 is shown through the Balance Sheet, Profit & Loss Account of the Islami Banking Branches below :JBL’s Shariah Council consists of 06 (Six) members, among them 02 (two) are Khatib, 01 (one) is Ex-Economic Advisor, 01 (One) is Vice chancellor, Islami University, 01 (One) is Principal and other one is Banker. During the year 2009, the Shariah council of JBL conducted 03 meetings to discuss all aspects of Islamic Branches operation.
1.8.2 Portfolio Management Service
Since inception, we have achieved an unparalleled reputation as a leading Merchant Banker through providing portfolio management services by maintaining a high level of professional expertise and integrity in client relationships. Keeping customer preferences as an investor in mind, Jamuna Bank Ltd. has designed Investors’ Discretionary Account (IDA) and Bank’s Discretionary Account (BDA). In these accounts the customers may enjoy loan facilities at a ratio 1:1 for investments in private placement, IPO, and secondary market operations.
1.8.3 JBL Special Banking Services:
Special Banking services of Jamuna Bank are considering the Personal services. The bank is offering wideranging products and services. These services and products are matching with the customer’s requirements. Transactions of accounts, savings schemes or loan facilities from Jamuna Bank Ltd make available for every customer in a unique and uniform mixture of easy and expert service superiority.
JBL offers the Special Banking Services like Current Deposit Account, Savings Deposit Account, Short Term Deposit Account, and Fixed Deposit Accounts. It also offers attractive rates on various deposit schemes.
1.8.4 JBL Corporate Banking Services
Jamuna Bank Ltd. offers a complete range of advisory, financing and operational services to its corporate client groups combining trade, treasury, investment and transactional banking activities in one package. The corporate Banking specialists will render high class service for speedy approvals and efficient processing to satisfy customer needs.
Corporate Banking business envelops a broad range of businesses and industries. You can leverage on the know-how in the following sectors mainly:
Agro processing industry
Industry (Import Substitute / Export oriented) Textile, Spinning, Dyeing/Printing
Export Oriented Garments, Sweater.
Engineering, Steel Mills
Chemical and chemical products etc.
Telecommunications.
Wholesale trade
Transport · Hotels, Restaurants
Non Bank Financial Institutions
Loan Syndication
Export Finance
Import Finance
1.8.5 Online Banking
Jamuna Bank Limited has introduced real-time any branch banking on December 31, 2010. Now, customers can withdraw and deposit money from any of its 65 branches located at Dhaka, Chittagong, Sylhet, Gazipur, Bogra, Naogaon, Narayanganj, Dinajpur, Kushtia,Rajshahi, Bashurhat, Sirajganj and Munshigonj. The valued customers can also enjoy 24 hours banking service through ATM card from any of Q-cash ATMs located at Dhaka, Chittagong, Khulna, Sylhet and Bogra.
1.8.6 Types of Deposit account
There are several types of deposit accounts. Each account has different characteristics and every account has some specific purpose to serve.JBL offers the following key Personal Banking Services. According to their uniqueness they are described as follows:
Savings Account:
It is the general account of the JBL (Mirpur Branch) individual or more than two persons can open a savings account on JBL. The officers and authorize persons are issuing cheque book, deposit slips and statement of account to the holder of savings. The officer justifies the information that is submitted by the account holder for opening of the account. The officers of the bank process account-opening formalities.
Current Deposit Account:
JBL is one of the newly established well-reputed third generation private commercial bank in Bangladesh. It operates very diverse current account operation. They serve various types of customers, like current account for private limited company, current account for public limited company, current account for partnership business, etc.
Foreign Currency Account:
The JBL also operate Foreign Currency Account for Bangladeshi Wage Earners or for Foreign Nationals/Company/Firms etc. to send their valued earned foreign currency into the country.
Short Term Deposit Account (STD):
JBL also offers Short Term Deposit to its valued customers. Short Term Deposit is a deposit account where the payment of interest is paid on month basis. These items include the deposits for a period ranging from 7 (seven) days to 89 (eighty-nine) days. These types of liabilities are payable on special notice or after a specified period other than the fixed deposits. Some of these types of deposits are of the nature of time deposits. The rate of interest on STD account is 4.5% per annum. There are some rules and regulations that must be maintained by the STD account holder. If the STD account holder wants to withdraw the money from the account they have to inform the bank before, otherwise the account holder may not get the interest in full amount
Schemes:
Schemes are the most important sources of enhancing banks deposit. Mainly bank is the lender of money, which is deposited by various types of depositor. These schemes are different in nature and types and also in interest rates. These deposits give the customers to deposit the idle money in profit earning schemes and also provide the security. Jamuna Bank limited as third profit earning to the depositors and generation modern and technology based modern commercial bank offers various types of customer’s friendly deposit schemes to its valued customers. These schemes are highly also unique in security.
Marriage Deposit Scheme
Marriage of children, especially daughter is a matter of great concern to the parents. Marriage of children involves expense of considerable amount. Prudent parents make effort for gradual building of fund as per their capacity to meet the matrimonial expense of their children specially daughters. Parents get relief and can have peace of mind if they can arrange the necessary fund for marriage of their children.
1.8.7 Types of loan of what are offered by Jamuna Bank Limited
Loan (General)
House Building Loan (General
House Building Loan (Staff)
Other Loans to Staff
Cash Credit (Hypo.)
Cash Credit (Pledge)
Corporate Social Responsibilities of the Jamuna Bank Limited
Hire Purchase
Lease Financing
Time Loan
Cons SOD (General)
SOD (Others)
SOD (Export)
PAD
LlM
LTR
IBP
Export Cash Credit (ECC)
Packing Credit (PC)
F D B P
Assignment On Business Plan
Assignment
On
Business Plan
Course: Entrepreneurship Development
Executive Summary
“Alpona Boutique” Shop is a new apparel store that caters to the Bangladeshi people. As our name suggests our focus is to provide customized wear apparel and accessories, and position ourselves as the top retail store servicing this particular market.
Our intentions are to obtain market share and become a central hub of shopping activity for the local population as well as Nonresident Bangladeshis (NRBs) who enjoy wearing fashionable apparel.
“Alpona Boutique” Shop will be located at Dhanmondi. “Alpona Boutique” Shop has centralized itself directly in position to the residential location and social activities of our target market. We believe that this is critical to our initial success and long-term growth.
Highlights
Objectives
1. To create a shopping environment that caters to the apparel needs of the local people as well as NRBs.
2. To receive a 50% profit margin within the first year.
3. To have a customer base of 1,000 by the end of the first operating year.
4. Create employment opportunity.
5. To conserve and uphold culture and values by providing domestic products to NRBs.
6. To generate scope for enhancement for related industries like those who provide the raw material.
Mission
“Alpona Boutique” Shop’s mission is to offer quality, name brand accessories and clothing in an assortment of sizes and styles to accommodate varying styles and shapes.
Keys to Success
In order to succeed in the boutique industry “Alpona Boutique” Shop must:
Provide customers with top notch personalized customer service in an atmosphere of Bengali hospitality.
Carry an assortment of sizes to fit the more ample frames of their target customer base.
Advertise and promote in areas that target customer base will learn about the store.
Continuously review sales and adjust inventory levels accordingly.
Company Summary
“Alpona Boutique” Shop is organized as a partnership among the seven partners of Naziur Rahman,Jana Alam,Saddam akand,Mehedi Hasan,Abu huraira ,Forhad hossain,sahriar taposh.
We will be located at Dhanmondi,Dhaka being the epics-center of the Dhaka community.
The hours of operation will be Saturday - Thursday 9 a.m. - 9 p.m. and Friday 10 a.m. - 12 p.m. There will be extended special hours designated during The Festivals like Eid-Ul-Fitr and Eid-Ul-Azha, and New Year.
All merchandise will be purchased according to the company's mission and customer focus of outfitting all sizes.
Company Ownership
“Alpona Boutique” Shop is organized as a partnership among the seven partners of
Naziur Rahman
Jana Alam
Saddam akand
Mehedi Hasan
Abu huraira
Forhad hossain
sahriar taposh.
Everyone will handle the administrative and managerial duties on rotation.
Start-up Summary
“Alpona Boutique” Shop’s incorporation costs are listed below. The company will start with three months inventory on hand for apparel and accessories as this are the main revenue generator. The majority of the company's assets will reside in inventory.
Start-up
Start-up
Requirements
Start-up Expenses
Trade License
Tk.1, 000
Grand Opening Event
Tk.10,000
Telephone & Utilities (3 months)
Tk.1,500
Infrastructure Development
Store Fixtures/ Decorations
Factory
Tk.150,000
Tk 20,000
Staffing and Recruitment
Tk.20,000
Advertising & Promotion
Tk.15,000
Raw material collection
Tk.70,000
Purchase of Machinery
Tk.90,000
Installation Cost
Tk.10,000
Business/Office Supplies/Stationary
Tk. 1,000
Accessories (Dices, Frames)
Tk.10,000
Total Start-up Expenses
Tk.398,500
Note: It will take 8 weeks to prepare for and start the venture.
Company Locations and Facilities
Alpona Boutique Shop will be located at dhanmondi in Dhaka. This space has 1,200 square feet and has been rented for two years. This location is central to the geographical location for the Dhaka community. We feel it is essential to our initial and ongoing success that we locate ourselves in the heartbeat of the community. We also strive to create an atmosphere of acceptance and community, as well as a retail environment where individuals can identify and bond with their culture.
All business deliveries will be handled through the showroom. The factory is near by the showroom so no extra transportation cost will be needed to bring the products from the Factory to showroom.
Products
Alpona Boutique Shop will carry traditional wear brands. The greatest percentage of merchandise will be in apparel, followed by accessories, and gifts.
Management will rely on customer feedback, suggestions, and sales reports to introduce or eliminate certain brands, styles and sizes.
Saree
Salwar Kameez
Kids' Item
Bed cover
Cushion cover
Curtain
Others
Competitive Comparison
Alpona Boutique Shop has a number of advantages that will allow us to build our brand identity, add value to our merchandise and build a loyal customer base while standing apart from our competitors.
1. Alpona Shopper Card' will entitle customers to a 15% discount after ten purchases.
2. We will offer clothing to fit plus size for all.
3. We will create a sense of culture and bonding with the community by offering products that combine both the culture and innovation.
4. Ourlocation is central to our target customer base.
5. We will maintain a detailed record on each customer, logging addresses, their purchases, size, and brand for customer follow-up and in-house promotional purposes.
Commercial Viability
1. The plan is a sound one because it will create employment opportunities as well as providing scope for related industries.
2. There is a huge demand for clothing, as these items reflect one’s personality and status.
3. The plan is acceptable as there will be no environmental degradation.
4.The investment cost is comparatively lower.
5. The employees required for the project are few in number and available.
6.As the investment is lower the risk associated with the plan is also low.
Sales Literature
Alpona Boutique Shop will use a targeted advertising and sales program to generate publicity and build a customer base.
1.500 full-color postcard flyers with a 10% coupon will be distributed throughout Dhaka two weeks prior to the grand opening event.
2.100 grand opening invites will be mailed to potential new customers two weeks before the grand opening in June, 2014. The invitation will also include a promotional 10%coupon off a customer's first purchase. The customer mailing list has been compiled from contacts the owners have made while in the community.
Sourcing
We will shop for our merchandise as outlined below:
1. With renowned fashion houses like Aarong who have regional representative and showroom located at the Center, we will place our weekly and monthly reorders with them and review new materials.
2. August 2014 is the Eid-Ul-Fitr, the largest festival for Bengali people and apparel featuring the latest collections of all brands will be presented. All orders will be placed bearing Eid in mind.
We will also work to solidify our relationships with sales representatives and vendors so that we may achieve decreased cost of goods. Our competitors,
(both direct and indirect) purchase from the same sources and we believe that through marketing programs and strategic alliances we will begin to gain a competitive advantage.
Technology
Retail apparel establishments have a tendency to have a high number of SKU's because of the level of inventory. It is imperative that an advanced inventory and point of sales program be utilized to maintain stock levels and track sales.
Our business plan will be generated and reviewed on a bi-annual basis and reviewed quarterly to ensure all financial goals and objectives are being reached. It will allow us to make the most of our limited marketing budget by focusing our communications on our target markets and enhancing our marketing knowledge.
Future Products
As we achieve and exceed our sales and profitability goals, Alpona Boutique Shop will add other products to the product line and our own personal in-house label of clothing that will include Alpona-shirts for women and shirts for men. We will expand our line of brands with those that have been repeatedly requested by our customers. An e-commerce website will also be created to increase our distribution channels and expand our customer base to a national level.
Market Analysis Summary
The primary target customer of Alpona Boutique Shop will be the local people in the Dhaka region. As we are situated in the epi-center of the residential community we believe they will make up the largest percentage of our customer base.
The secondary target customers are the NRBS. As the Nonresident population continues to grow rapidly in various parts of the world we expect to receive the patronage of them as they are very loyal to Bengali apparel.
The last target customer of Alpona Boutique Shop is listed as other. As popularity about the store increases we expect to see an assortment of curiosity seekers as well as seasonal purchasers during festival season.
SWOT analysis
Strength
1. Premium price charged to reflect innovation and creativity.
2. High quality raw materials are collected from renowned fashion house.
3. Timely delivery for ordered products.
4. The location of the shop is very much favorable.
Weakness
1. Being a new entrant is one of the weaknesses of the boutique shop.
Opportunity
1. A partially fulfilled customer need is a great opportunity for the shop.
Threat
1. Increasing market price of raw materials and labor.
Market Segmentation
The population of Dhaka is concentrated heavily in the southwestern part of