Company Profile:

Established Size of facility Market served Major Customers Average annual sales Capital investment Material used Number of employee Shift worked Machines Quality

Year 1989 2,80,8000 sq ft 15% of the total market share of Bangladesh Domestic sale through Companys authorized agents $40,000,000 $6,000,000 Cold Rolling Coil(JISG3141) 238 3 Shift 5 Galvanizing lines 212 to 222,J/S G3302

Table1: Sales, Net profit and Net worth as per audited balance sheet for band 2009

Sales

Net profit

Net worth

KIY Steel Industries Ltd

921,284,152

48,207,574

1,077,277,086

KY Steel Mills Ltd.

1,206,295,284

54,471,299

928,806,494

Source: Companys Accounting Department

Table2: Sales, Net profit and Net worth as per audited balance sheet for band 2010 Sales Net profit Net worth

KIY Steel Industries Ltd

914,348,359

31,169,227

1,108,446,315

KY Steel Mills Ltd.

1,507,142,093

48,784,344

977,590,838

Source: Companys Accounting Department

Financial comparison among three years Capital structure and Profit :

particulars

July-2010

July-2009

July-2008

Paid up capital

1,450,000

1,450,000

1,450,000

Reserve And Surplus

31,900,000

18,850,000

7,975,000

Capital employed

334,578,650

322,578,000

305,078,450

Turnover Profit after tax

1,289,576,000 12,658,500

1,208,334,300 10,548,750

302,192,000 7,735,750

Earnings share

900

750

550

Product type and preferences:

There are basically three types of products in the market. These are Discrete Galvanizing line(GL) and Continuous Galvanizing line(CGL) . In the study it is found that almost twenty percent respondents prefer to sell only GL, ten percent is interested to CGL.

Though around seventy percent of respondents are interested to sell both GL and CGL. This is a previous scenario, but now there is another addition in the product line KY steel. This is named as NOF. NOF uses the most updated technology. This technology reduces The consumption of Zinc, and thus reduces the cost of production. This technology is environment friendly too. Comparison among these three lines of GI Sheet given below.

Product

Zinc consumption

Durability

Price

GL

High

Excellent

High

CGL

Low

Low

Low

NOF

Medium

Satisfactory

Reasonable

So, middle class consumers find it wise to use NOF products. So the demand for NOF is increasing day by day. In fact NOF is the most demandable in the market place.

Brand preference:

In the market driven economy branding becomes the most important part of product management in marketing. Now a day almost nothing goes without branding in the market place. KY Steel uses a very well known brad name and Seal (Chaap) of MURGI (hen), which was previously used by Chittagong Steel Mills Ltd. There is some other well known brand like GARU (COW) - of AKS, HORSE-of PHP, COCK-of S.ALAM. A previous survey shows the bran preference among the consumers as followsBrand preference Seal % of responses

AKS (COW)

38%

KY (HEN)

27%

PHP (HORSE)

21%

S.ALAM (COCK)

14%

Problem Definition: The rapidity of business growth of KY Steel Mills Limited is slow due to the luck of proper utilization of imported technology and raw materials.

SWOT Analysis

Internal

Strengths: 1. Good Brand Name. 2. Skilled Employees & Worker. 3. Good Market Share.

Weaknesses: 1. Imported raw material. 2. Old production equipment

External Opportunities: 1. Introducin g NOF technology. 2. Increase market share. 3. Cost effective. Threats: 1. Increase competition. 2. Time consuming for establishing new NOF technology. Possible Strategy: 1. Establish NOF technology. (O1, S1,S2,S3) 2. Producing cost effective Product. (O2,O3,S1,S3) Possible Strategy: 1. Diversify the firms technology as soon as possible. (T1,T2,S1,S2,S3) Possible Strategy: 1. Build several smaller plant. (O1,O2,O3,W1,W2)
2.Decentralized management and

Production. (O2,O3,W1,W2)

Possible Strategy: 1. Sell the comp (T1,T2,W1,W2)

Alternative Solution: Alternative 1:

Introduce NOF (Non-oxidized Furnace) technology. Advantage: 1. It helps to produce cost effective product for the customers. 2. It also environment friendly. 3. It reduce the wastage of raw materials. Disadvantage: 1. Time consumption is high. 2. Production can be hamper during the establishment.

Alternative -2: Build several smaller plants in present technology. Advantage: 1. Continuous production. 2. Short time needed to build the plant. Disadvantage: 1. Production cost is very high 2. It is the cause the environmental pollution.

Alternative -3 Decentralized management and production. Advantage: 1. It helps to take quick decision about production. 2. Also it increase firms production. Disadvantage: 1. The process is costly

2. It may hamper total decision making process of the organization. Best Alternatives: The best alternative is too introduce the NOF technology in the organization. Because It reduce the cost Helps to produce good quality product at reasonable price It also environment friendly It is the best technology for proper utilization of raw materials.

So, as far long term prosperity of the organization NOF technology is the best solution. Implementation process: NOF technology is a foreign technology we have to follow domestic as well as international strategy. The implementation process are:-