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A-Project-on RMBL

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0% found this document useful (0 votes)
34 views26 pages

A-Project-on RMBL

Uploaded by

Devil Joker
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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A Project on

Rancon Motorbikes Ltd

Mgt-210
Section-10
Submitted to
Ms. Afnaan Ahmed
Lecturer
School of Business
North South University

Submitted by
Name ID Contribution
Md. Al-Amin 132 0562 030 Organization Structure
Jayeed Al Sabit 133 0529 030 Strategic Mgt. and SWOT
Fariha Fairot Proshanti 161 2102 048 Org. Internal and External Env.
Surja Saha 171 1885 630 Key Management Issues

Date of Submission: 17th April 2018


Letter of Transmittal
Latter of Transmittals
17th April 2018

Ms. Afnaan Ahmed

Lecturer
North South University.

Dear Miss,

With due respect, we beg and state that we would like to present our report on the analysis on
Rancon Motorbikes Limited. We have interviewed them and asked different question about
Rancon Motorbikes Limited. We all tried our best to match our theories with their answers.
Therefore, we pray and hope that that our team effort will meet all your requirements for the
project. We will always be available to provide further clarifications if needed.

Sincerely,

Md. Al-Amin
Jayeed Al Sabit

Fariha Fairot Proshanti


Surja Saha
Table of Content
Executive Summery…………………………………………01
Introduction………………………………………………..02
Organization Structure……………………………………03
Work Specialization…………………………………03
Departmentalization……………………………..04
Contemporary Organization Design…………………..05
Team Structure…………………………………05
Flexible Work Arrangements……………………..06
Situation Analysis……………………………………08
Internal Environment…………………………..08
External Environment………………………….09
SWOT Analysis……………………………………..10
Executive Summery
Rancon Motorbikes Ltd. has been established to be the Sole Distributor of Suzuki Branded
Motorcycles in Bangladesh. Primarily, they import the Motorbikes in CKD constitution from
India and/or as advised by Suzuki Motor Corporation (Japan). Rancon Motorbikes Ltd, (RMBL)
set up the assembly factory and all subsequent trading activity up to wholesale trade. Rancon
Motorbikes Ltd is building a unique portfolio of Motorcycles sourced from Suzuki Motor
Corporation. They are at all times be determined to exceed their competitors in quality,
originality and value. They relentlessly strive to elevate their brand to become the Motorcycle
Company that most buyers come to across the nation. RMBL wants to be synonymous for all
things Motorcycle related. They aim to offer the people convenience through establishment of a
large and extensive dealer network throughout the country. They want to continuously increase
their channels and go on to train our dealers to provide a personal touch experience that helps
create lifelong customer relationships. They believe, RMBL will be known for its leadership
edge, through our zeal for high standards, their reverence for diversity and their commitment to
creating outstanding opportunities for professional growth so that associates can achieve their
highest potential. RMBL is committed to deliver superior returns to our shareholders by
vigorously pursuing new development opportunities while persistently improving our prosperity.
They are a socially responsible, ethical company that is emulated as a model of success.

Mission Statement
“Quit Following. Lead for a Change.”

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Introduction
Rancon Motorbikes Ltd (RMBL) is the company who introduced Suzuki bikes in Bangladesh.
They have incorporated their journey from December 3, 2012. Rankon Motorbikes is the venture
of Rancon Group. They are the biggest revenue generator of Rancon Group. They have partnered
with Suzuki Motor Corporation, Japan and licensed to assemble and distribute Suzuki two
wheelers throughout Bangladesh. They have 80,000 sft. and more than 80 workers work daily for
assessing the job. The total number of human recourse is 287 and including them they have 138
people in the management section and 151 are in the non-managerial section. When they started
their journey in Bangladesh, they had only imported very few varieties of bikes from Suzuki but
not they have more than twelve (12) varieties of bikes and scooties including Suzuku Hayate,
Lets, Gixxer, Gixxer SF, Access, Gixxer SF Motogp S.D etc. These bikes are very well shaped
and have latest technology which can capture the market very easily. Currently they have
distributed their bikes to 87 dealers and have 2 own Suzuki showrooms. As a brand of
motorbikes, there are several companies who imported different kinds of bikes from different
countries and their brand wise market share is- Hero 10%, TVS 15%, Bajaj 47%, Yamaha 3%,
Dayang 7%, others 2%. Suzukli has captured 6% market share as they are new in this industry.
They have earned revenue in 2016-2017 was 2998.85 million. They have quarterly calculated
their gross profit. In the 1st quarter they had 23.62%, 2nd quarter they had 20.87%, 3rd quarter
they had 25.05% and the 4th quarter they had 30.45% which shows that they have upward gross
profit. Their most selling bike is Gixxer Family which is total 67%. They have total 87 dealers
all over Bangladesh. In 3 years’ time they are already present in 53 districts with 89 showrooms
selling their prize products.

Motto

“We believe it is our people who makes the difference and makes us stand apart in the business
growth momentum. People are our biggest ASSETS! Today we have talents from across the
board. People from other M&Cs and top corporate are preferring to work for RMBL”.

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Organization Structure
Work Specialization
Rancon Motorbikes Lltd. is a company who introduced Suzuki bikes in Bangladesh. They
directly imported the bikes from Suzuki Motor Corporation from Japan and distributed all over
Bangladesh. They always determined to compete in the market with the excellent quality, ideas
and core values. In the organization of Rancon Motorbikes, works have been divided based on
the expertise and capabilities of the workers and executives. They use-

1. Job Rotation: When we interviewed them about our project work, they just reflect the
same thing which we covered in our course. They simply rotate the new employees work
several times as they know that the importance of diversity. They believe that the skills
must be achieved through training, orientation etc. A notable incident we have noticed
that when I just normally observing their routine work, they were like very friendly with
each other and talking about their roles and responsibilities. Most of the executives wore
informal dress and their behavior was very motivated. After interviewing some of the
executives we have concluded that their work has been divided based on their skills and
they improved their skills in the very fists months of joining.
2. Job Simplification: In this modern life online, based business and IT sector has been
flourished with a vast number of technological factors. Rancon Motorbikes has already
built a strong website and to maintain that website they have appointed skilled admin
who has greater amount of knowledge. They actively maintain the website and
categorized their bikes based on the priority. There are many employees whose main
work is to check the emails and send back emails on behalf of the company. One of the
executive said that” It is not an easy task to manage although it seems simple but lots of
times it is questionable when the admin and email works are not done properly”.
3. Job Enlargement: Throughout the interview we have noticed that the senior executives
were highly skilled and have that kind of knowledge for sudden decision making. The
senior executives were highly enlightened as they face lots of difficulties and dilemmas.
So that kind of activities are divided these senior executives as they have vast amount of
knowledge to make certain types of decision. For example- In recent times they face
many difficulties about decreasing their sales. So, the senior managers found out the
problem within a short period of time and solve it.

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Departmentalization
Rankon Motorbikes main product is Suzuki bikes and scooties, so they mainly focused on 3
types of departments together to capture the overall market in Bangladesh. They are-

1. Product: Rancon Motorbikes is the only distributor in Bangladesh who imported Suzuki
bikes from Japan and selling in Bangladesh. So, we have already realized that their core
product is Suzuki bikes and scooties. However, they have categorized their bikes and
scooties in terms of the importance. One of the marketing and sales executives told us
about how they capitalize their product and in return they said” In our country young
people are more encouraged to buy stylish bikes within reasonable price. So Rancon
Motorbikes keeps in mind about their product and distribute it. Some of their bikes
information are given-

Sl No Model Price (BDT)


1. Hayate 1,24,950
2. Lets (Scooter) 1,59,950
3. Gixxer 2,24,950
4. Gixxer SF 2,64,950
5. Access (Scooter) 1,79,950
6. Sling Shot 1,49,650
7. GS150R 1,99,950
8. Gixxer Dual Tone S.D 2,29,950
9. Gixxer Dual Tone D.D 2,39,950
10. Gixxer SF Motogp S.D 2,74,950

2. Functional: Rancon Motorbikes has divided several departments for their growth for the
long run. They have audit, finance, HR & admin, marketing, operations, sales & supply
chain. All the departments are linked with each other. When we took interviews, most of
the executives were able to answer everything whether they were from different
departments. The main approach was they have done their works jointly so that the work
cannot be stopped. They started their fiscal year from July and after the end of the fiscal
year specialist auditor audit the overall company’s accounts and share their feedback.
3. Geographical: As they are the only distributor of Suzuki Motorbikes in Bangladesh, so
they normally distributing bikes all over Bangladesh. But their main focus is in Dhaka
and Chittagong. Shahrin Hossain (Senior Executives of HR) told us about why they
basically choose Dhaka and Chittagong because these two areas are the most common
area where all the peoples have their eyes and they are very popular. They have 28
dealers in Dhaka, 13 in Chittagong, 13 in Bogra 10 in Rangpur and 18 dealers in other
zones. So Rankon Motorbikes have most of the distributors in Dhaka and Chittagong.

4|Pa ge
They opened many showrooms in different places in Dhaka and Chittagong and actively
selling their motorbikes through showroom.

Contemporary Organization Design


Team Structure
A team structure is one in which the entire organization is made up of work teams that do the
organization’s work. (Stephen.P. Robbins & M. Coulter, 2018)

When we asked about the teams and the collaboration, they were enlightened to share their views
and ideas. They always want diversify workers who has vast amount of knowledge and skills.
They use all 4 types of teams which we covered in our class.

1. Problem Solving: Sometimes they use some external consultants for certain types of
problem solving. But they mainly used their in-house skilled workers whose main work is
to provide resourceful information about how to face certain types of challenges when the
motorbikes sales declining. Their main work is to increase the productivity and when
their work is done they will be tarnished and handle another work.
2. Cross-Functional: Basically, they choose different departments skilled workers or
executives for solving different kinds of problem. They choose 1 specialist from each
department and forming a team through which there are a common goal and everyone has
an equal opportunity to share their views and ideas. As we have already mentioned that
they mainly focused on diversify and skilled executives and worker. The advantage about
the cross functional team is different executives has their own department knowledge and
they implement their knowledge when there is needed. In recent times they have
published a magazine named Torque and this magazine is jointly made by the expertise
of each departments.
3. Virtual: Rancon Motorbikes imports Suzuki motorbikes from Japan and thus several
times in a year there are lots of executives whose work is to go to Suzuki Motor
Corporation in Japan and deals in terms of the company. Many times, the R & D sector
executives need to talk to higher authority in Bangladesh through videoconferencing.
They do it very secretly as there has a chance to leak the confidential information outside.
Telecommuting is the common thing for their communication. Even the executives give
presentation live from Japan. Sometimes they use social media for communicating with
the other colleagues.
4. Self-Managed: Rancon Motorbikes has invested a huge amount of money in Bangladesh
as they introduced Suzuki Motorbikes. So, they needed the best expertise that has
different knowledge about different sectors. We have noticed that all the executives that
we have interviewed have brilliant skills and techniques. They know that it is the

5|Pa ge
company which has lots of reputation. When there is certain situation like price drop of
motorbikes, distributor fraud etc. than certain decision needs to be taken immediately for
the well-being of the company. So this self-managed team which is assigned by the
organization can take several steps against this crisis situation.

Flexible Work Arrangements


When there is motivation than worker will be very enlightened to work. This motivation can be
in terms of benefits. These benefits can increase the output of the company.

Rancon Motorbikes ltd. also knows the meaning of motivation. They believe that these benefits
should be mandatory in each and every organization. They use 2 work arrangements for their
workers and executives and they are-

1. Telecommuting: Rancon Motorbikes has R & D sector and their main work is to go to
different places and work for the company. So they basically give some benefits to the
executives based on their needs. As we have already mentioned that when some
executives went to the outsider country than the only communication process is video
conferencing or telecommuting. There is lots of interview or presentation which needs to
elaborate through videoconferencing. Sometimes executives went to holiday or sudden
incident happened with them which need to work outside of the organization for the cost
saver purpose. So they simply connect with the organization working on virtual system.
They also provide maternal leave, paternal leave etc for the betterment of the employees.
2. Job Sharing: This benefit also given in Rancon Motorbikes ltd. basically job sharing is
nothing but to divide the job between two or more workers which normally done by one
full time employee. They said that they want to increase the productivity by splitting the
job in two or more workers and based on that the payment is given. They can make work
family balance issues by providing shared work between them. When there is any family
member who is ill and one needs to take aid than job sharing is the best approach for
them. That’s why Rancon Motorbikes used this benefit system.

They are sharing a benefit to the executives and workers can buy Suzuki bikes less than 50%
money from their original price. Even this 50% taka can be given within 2years of installment or
IMEI system. They are giving these types of benefits for the better output of the employee’s job.
They always try to encourage employee satisfaction because if employee is satisfied that their
customer will be satisfied. When we heard that news we were like amazed as I personally has a
crush on a Suzuki Gixxer. So this benefit can be a booster for the employees of Rancon
Motorbikes.

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They also provide a benefit slightly similar to “Flex Time” which is any employees can come to
the office between 9.30 to 11 o’clock. They are giving these facilities because they know the
situation about our traffic system. So they give these types of flexibilities to the employees.

Recommendations
✓ It is good that executives can wear informal dress. But when outsider come to the
organization and sees the informal dress that it will be questionable. So formal dress code
must be implemented.
✓ They can specialize their worker’s skills by organizing seminar inside the organization.
✓ They currently not provide flex time benefit. So, it must be introduced very soon.
✓ They can manufacture their own motorbikes and that will fall under process
departmentalization. Where there they will be producing each and everything. As they
already said us they will started this procedure soon.
✓ They can introduce bounderyless organization structure so that the flexibility of
employees will be increased and they will have more empowerment for decision making.
✓ They can use whistle blowing protection in their internal organization as they are the only
importer of Suzuki bikes and the competition can be increased.
✓ They can open their own showrooms through which they can sell their bikes directly.

7|Pa ge
Situation Analysis

In situation analysis we will discus about the Internal and external situation of the company.
Internal situations are the culture in the company from which the employees can know and
can understand about the organization. It is a system of shared beliefs held by organizational
members that how they act toward each other. And the external environment is the challenges
and the situation out of the organization. It is the forces and institutions outside the organization
that potentially can affect the organization's environment.

Internal Environment: There are some factors from which an employee can know about culture
and value of the organization. For the company ‘RANCON MOYOR BIKE LIMITED' we
discus abut orientation and material artefacts and symbols.

Orientation: Orientation is the process that helps employees adapt to the organization's culture.
Organizational culture has been described as the shared values, principles, traditions and ways of
doing things that influence the ways organizational members act and that distinguish
the organization from other other organization. In RANCON MOTOR BIKES LIMITED when a
new employee joins the office offer the employee to visit the whole office. Everybody meets
with the new employee in the first day. They introduced with each other. The new employee
visits the recreation hall, prayer hall, cafeteria, meet with MD and the higher-level managers.
In the first day they informed about the mission and specific work that the new employee hate
to do. They informed about discipline, rules, cultures which they should follow. In the 7th day of
joining, the official orientation is held. In the orientation oriented the new employees.
The employees can know about the history, moto, mission, vision and goal from the orientation.
In every weak the company organize a weakly orientation for all the employee to inform the
company's current situation. They present a presentation about SBO. So that from the orientation
the employees can know and understand about the culture and values of the company.

Material Artefacts and Symbols: We may know about an organization that what types of
work environment it is by material symbols or artefacts in creating an organizations personality.
It may express from organization's facilities, employees dress etc. Also, may express by
executive perks which is means that extra benefits provided to a manager, deserved parking
space for certain employees, facilities for employees. In RANCON MOTOR BIKES
LIMITED most of the managers and employees can use the company's transports to come and go
home from office. The employees can buy the motorbike (which the company import) in
50% discount and can pay the money within two years. So, it is a very specious facility for
the employees. When we visited the company, we saw that in front of the office building there
are specific space for the office employee to park their car or motorbike. So, we can
easily understand the organizations personality or value from these types of symbols.

8|Pa ge
External Environment: The term external environment refers to factors and forces outside the
organization that affect its performance. There are many external components which can affect
the company. The economic component encompasses factors such as interest rates, inflation,
changes in disposable income, stock market fluctuations, recession and business cycle stages.
The demographic component is concerned with trends in population characteristic such as age,
race, gender, educational level, geographic location, Income, local laws as well as global
laws and laws of other countries. It also includes a country’s political condition and stability.
The socio-cultural component is concerned about societal and cultural factors such as values,
attitude, trends, traditions, life style etc. The technological components.

9|Pa ge
SWOT Analysis
SWOT is the short term of Strength, Weakness, Opportunity and threats. Strength and Weakness
refer to internal and Opportunity and Threats are external forces. SWOT analysis of a business
helps to understand a business what the advantages are and what the problems are. It helps the
business to pursue the right strategy for their business. Whether they want to grow or not, how
they should grow and stay stable at the current market share.

Here we have done SWOT Analysis on Rancon motorbikes based on internal and external
forces.

Strengths Weaknesses
(i) Suzuki brand name (i) Relatively New in business
(ii) Capable workers (ii) Lower service points
(iii) Customer service
SWOT
Opportunities Threats
(i) Emerging Market (I) Tough competition
(ii) New Technology (II) Registration problems
(iii) Fragmented Industry

Strengths: Suzuki motorbikes is the strongest strengths of Rancon motorbikes limited. It is a


well-established motorcycle company worldwide and there is a huge demand of Suzuki
motorcycles in Bangladesh. Rancon motorbikes has a large number of capable engineer and
workers which they call their human capital. They believe their human capital is the key to their
success. They are emphasizing on the customer service. Because in the competitive market,
customer service makes a huge impact in competitive advantage.

Weaknesses: Rancon motorbikes started their journey at the end of the 2014. When we asked
them, what is their policy in the recession they replied that they do not have one because they
have not faced it yet. This is the problem. Because now Bangladeshi economy is in an unstable
position. Anytime the recession may come. They are new and inexperienced. Another weakness
of them is they have comparatively lower service center than their customers. Most of the time
people who bought Suzuki motorcycle need to come to Dhaka city just to service their

10 | P a g e
motorcycles officially. Though they are trying to focus more on customer service, they have
lower service points. So, they need to create more service points.

Opportunities: Bangladesh is an emerging market for motorcycles. every year the buying rate of
motorcycle is increasing. People are preferring motorcycle because motorcycle is a faster
commuter than other transportations. New technology for motorcycles are an opportunity for
Suzuki. Upgraded technology for motorcycles make it ecofriendly and fuel efficient. People
would like to go for the most ecofriendly and fuel-efficient cars.

Threats: Bangladesh is an emerging market for motorcycles but there are lots of competitors in
the market. There are Uttara motors who are the distributors of Bajaj motorcycles, there are ACI
limited who distribute Yamaha, there are Runner automobile who distributes Dayang, TVS auto
Bangladesh, Niloy motors who distributes Hero motorcycles, etc. There are lots of competitors.
There are also registration problems. Lots of motorcycle buyers face this problem. BTRC do not
provide motorcycle registration on time so customers face problems. Another problem in this
industry is the motorcycle market is fragmented. There are lots of little owned motorcycle shop
in the country. Also, there are a black market of motorcycle. Which really cause problems for the
official dealers. They lose a large number of markets because of the black market.

This is the SWOT analysis of Rancon motorbikes. Rancon Motorbikes is a new company in this
industry but they are growing faster than their competitors. Within two years they have become
the cash cow of Rancon groups. Now they are planning to grow their business based on their
SWOT analysis.

For two companies such as Rangs and Suzuki to work in accord, it is easy to envisage great
synergies being achieved. Suzuki has the technology, the history and products that precede the
brands immaculate global reputation. Rangs has the local know – how, the marketing mastery
and the experience to take Suzuki forward with great force. With all of our mechanisms in place,
we forecast Suzuki being amongst the top contenders in the motorcycle market in just a few short
years.

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Competitive Strategy
Competitive strategy of a company is how the company competes in a market. Rancon
motorbikes use two competitive strategies in the market. One is Differentiation strategy and the
other one is focus strategy.

Differentiation Strategy: differentiation strategy is offering unique value of a product to its


customers. Suzuki motorcycle is one of the most well-known motorcycle brands of the world.
They focus on high quality, innovative design, long durability of the motorcycles. As their
distributor, Rancon motorbikes follows their strategy. They focus on the pricing strategy of
Suzuki. They do not compete other motorcycle brand in Bangladesh for example Yamaha, Bajaj,
Honda by lowering the price of Suzuki Motorcycle. They believe that Suzuki brand name is good
enough to compete in the market.

Competitive
Strategy

Differetitation Focus

Focus Strategy: There are several models of Suzuki motorcycles. Each model is targeted to
different segment of customers. In Bangladesh they target four segments of customers.
Commuter, Scooter, Speedster and Sport. Commuter is for everybody. Who are willing to buy
motorcycle to just to commute. These motorcycles are fuel efficient and are comparatively less
expensive to buy from other Suzuki motorcycles. Scooter is targeted mostly to women. Speedster
and sport are comparatively expensive. They are elegant and expensive. But sport is the most
expensive segment. Sport Suzuki motorcycles are targeted to a niche segment of the market.
Riders who want expensive cars and elegant looks go for Sport motorcycles.

Corporate Strategy
Corporate strategy of a business is how they want to grow. There are three corporate strategy to
grow a business. Growth, stability and renewal. There are four growth strategies. Concentration,
Vertical integration, Horizontal integration and Diversification. Diversification is two types.
Related and unrelated diversifications. Rancon motorbikes are planning to grow. They have
certain plans which match three growth strategies.
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Stability: in the very first year, they just wanted to be stable. They pursued for the dealership
and they distributed the motorbikes across Bangladesh. They did not have any plan to grow back
then. But when they understood the market, they started thinking of growing. Till one year of
their incorporating, they were following stability. Stability is keeping the business as it is. Not
trying to grow too much or not divesting the business. But from last year their plan has changed.
Now they want to grow. So, they are not following stability anymore. They will follow the
growth strategy.

Vertical integration: Rancon motorbikes just assembled Suzuki motorcycles until now. Now
they want their own manufacturing unit. There they will produce Suzuki motorcycles. Some of
their competitors already started manufacturing. Building own manufacturin g unit saves cost
from importing. It helps to reduce cost and help to compete in the market more efficiently. It
removes different barriers. Building manufacturing unit is the vertical integration of rancon
motorbikes.

Corporate Strategy

Growth Stability

Vertical Integration

Related Diversifications

Concentrations
Diversifications: Rancon motorbikes is also following diversifications strategy. They import
motorcycle accessories by incorporating their own company. The main purpose of that company
is to import necessary motorcycle accessories. This is related diversification. As it the company’s
business is related to motorcycle.

Concentration: so far, we discussed, Rancon motorbikes already tried to pursue or pursued


those strategies. But they have a plan to be the dealer of Suzuki cars to Bangladesh as well. Now
the dealership of Suzuki cars in Bangladesh is somebody else and they are not doing well. But
Rancon motorbikes is doing very well with Suzuki motorcycle unit. So, they are planning to talk
to Suzuki about cars as well. But there will be needing to more capital for being the dealer of
Suzuki cars. So, it is just in the thought process. They may go for the Suzuki cars in the future.

13 | P a g e
They are not going for it now. If they do, it will be the concentration strategy. Concentration
strategy is expanding the existing business units.

Barriers to Grow
there certainly be challenges. Some of the obvious challenges that we anticipate are:

• High capital costs: Any business of this latitude will require substantial capital
investment.
• High production costs: for the first few years, the production costs will be considerably
high. It is not until the later years that we will achieve greater economies of scale as
production volume increases and the cost per unit reduces. In the initial run, however,
these costs are substantially high.
• High marketing costs: Needless to say, the re-establishment of the Suzuki brand after
years of absence in the Bangladeshi market will require a sizeable marketing budget.
• Consumer acceptance and brand recognition: It takes some time before the general
consumers are aware of the products and accept the products. Due to the lack of
awareness, it will take some time before they can establish that acceptance throughout the
nation.
• Training and skills: There is a considerable time and monetary cost involved in training
and licensing fees. Furthermore, there will also be a learning curve prior to achieving full
efficiency amongst all workers.
• Tariff barriers: The overall taxes amount to approximately 108%. As their competitors
gear up for manufacturing, (local integration), they will achieve greater taxation benefits
via reduced import duties plus additional tax holidays.

How Rancon Motorbikes Can Overcome Barriers


• They, as a group, need to build strong relationships with various banks and financial
institutions. They should certainly get in touch with their existing contacts in the banking
industries so as to get the most preferential rates, terms and so on.
• It is given that production costs will be considerably high in the initial years. This will
indeed be a challenge but only to a certain degree. They need to be fully aware of the fact
that this shall be temporary and that in the mid to long term, they will achieve greater
economies of scale.

14 | P a g e
• High marketing costs are to be expected as the product will need to gain recognition.
However, this in turn will also yield great returns in the mid to long term. This is an
investment that they are more than happy to make.
• They need to work grass root level marketing campaigns to gain the attention of the
general public towards Suzuki products. Everything from road shows to concerts,
advertising in bus stands, high schools, universities to doing social work.
• They need to certainly conform to all of the rules and regulations as prescribed by the
Government. They should systematically edge towards more localization, so as to
achieve optimal taxation benefit.
• Furthermore, they should employ a full time Public Relations officer. His/her primary
responsibility shall be to capitalize on their exposure, taking care of government tenders
and managing the general the flow of information.

How their Strategies match their Future Goal


Rancon Motorbikes Limited is a relatively new company. They were just trying to stable their
business. But they saw a great future ahead and that is why they want to grow. They could grow
using any of the four growth strategies and they are pursuing for three of them. Because they are
desperate to grow. They could not use Horizontal integration because the market is highly
competitive. Competitors do not want to be the alliance. They do not want to share information.
Because leaking information may end up in losing market share. So, they are trying to pursue
other three growth strategies, Concentration, Vertical integration and Related Diversifications.

15 | P a g e
Key Management Issue
Managerial Role
Managerial Role refers to specific action or behaviors expected and exhibited by the manager.
This company senior manager gives this information for key management issue. And also tell
how to use this in their organization. This role very important for the Rancon Motorbike.
Because this factor provides a cleared method of manager to achieve the goal. This role are more
important for lower level then it is for either middle or top level manager.

1. Interpersonal Role: The Rancon Motorbike organization are involved to provide


information and ideas for run their work forces. Top manager motivates the worker to
achieve the certain goal. They motivate their worker in many ways such as they give
bonus on all festival and they organize a small party for all employ and fast level employ
and their dealer go a tour out of country, company carry their all expenses. Also provide a
nice environmental work places to their employ. It also creates a bridge between the top
management of organization to others and also approach to all the problem. For this
reason, workers are more attractive their work.

2. Informational Role: This role is related how to top manager of their company are
collecting the information inside or outside of the organization. they use date base
information system for collect their information. And supervisor also try to collect their
information. The information is to be about the people from top management to the
lower level employs. They are more careful to collecting information. Sometimes they
collect employ personal information.

3. Decisional Role: This role includes entrepreneurship role that managers takes an
initiative and a decision for gain their certain goal of a company. They also include
worker trying to solve problem. They also take worker and labor feedback. Negotiator are
also included for tied up with some other organization. Sometimes get their idea to set
their goal. This company also arrange meeting for their employ.

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Managerial skill
Managerial skill means an ability or proficiency of a manager in a business organization. Rancon
Motorbike understand the important of the management skill. For this reason, they give more
over view to this factor. There are three skills and this company fallow all of them.

1. Technological Skill: The top level and senior manager have to knowledge about
understanding all managerial problem field level to top level in this company. This skill
tends to be more important top-level manager of Rancon Motorbike. Because they
manage employs productivity, their behavior and how many employs join or left in this
organization. How many product import and sells and which model motorbike sallied
more or less. How much services to the customers. This company manager has all
knowledge of all factor. It is more important for Rancon Motorbike.

2. Humane Skill: In Rancon Motorbike employ has the ability to work well with other
people individually and in a group. They create group in their employ to take better
output. So, employs get better decision. All manager deal with people this is equally
important to all level manager in the organization. They have to know how to make
community in the organization, motivate inspire their employ. For gaining to easy way of
goal.

3. Conceptual skill: It means the ability of knowledge about future is an organization. This
skill more important of top level manager. It is more important of the Rancon Motorbike.
Their organization like CEO and Senior manager have to this skill. Because they know
their future growth and uncertainty of this company. Because there is primary
responsibility for palling and organizing company.

According to Key Management Issue of Rancon Motorbike it is the heart of the company. So,
Rancon Motorbike are continuously maintaining their managerial Role and skill. A manager
never be all these things at once. So, Rancon Motorbike lted. Strictly handel thia managerial
isseue.

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Customer Service Strategy

When we interviewed them about our project work, they just reflect this information thy tell us
that This strategy has great significance on the organization. Customer is a key stone of an
organization also business started depends on there. Rancon Motorbike has welled designed
customer service strategy. They give all customer two years warranty after buying their
motorbike. It is a huge time for their customer free services. They create Fifteen customer
services providing center, Fore are in Dhaka city and left are situated some biggest city in our
country. They also increasing their customer services center. All center online based so they
collect their customer information and feedback. And they also create rating system on service
by the customer. For this reason, first line manager easily understands their branch problem. As
Motorbike servicing is a solo process, they also create a cafe with their customer services center.
So that customer can easily and comfortably expand their time. Sometimes they also facing the
customer service problem. And they immediate try to solve them

Social media

It is more use to communicate the Rancon Motorbike organization. They use many social media
for many different issues. Email, Facebook and Skype are use in the organization. Email is the
most important for the internal communication. Skype are use in the organization for video
conference and long-distance meeting. It is so much important for the Rancon Motorbike.
Because they import their product in Japan. So, they need lots of meeting for first line manager
in the organization. They also use Facebook for advertising and community with their Diller who
sells their motorbike on the customers. Though gives advertising on TV but they also think that
Facebook is the great media of advertising. Because younger people like motorbike most and
they also use Facebook more. On the other hand, motorbike sales are increasing day by day.

So, using social media is more important for the Rancon motorbike. If they don’t use social
media they got into more treble to communicate with each other. It also increasing their expenses
such as travel cost etc.

18 | P a g e
Challenges
Challenges is a part of parcel of any company. Rancon motorbike are also facing lots of problem
everyday work activities. Sometimes this company facing also unexpected problem. After that
company try to cope with gradually this problem that are given bellow.

1. Tax rate: Rancon motorbike are import their all Motorbike. When government increasing
their tax rate of all import product, then the product prices higher and demand ware fall
down. That is unexpected problem for the company.

2. Shipping: it is more important of the company. If ship were coming to late, then supply
and demand problem are created. And also damage product were came damage on
container. For this causes, Customer also try to buy another brand of product to fill their
demand.

3. Political issue: this factor effect on business on externally. Though political issue is so
good of Bangladesh now but sometimes un expected situation are created. In this time
motorbike sales are totally stop and employ and labor cannot come proper time in the
organization then the Rancon Motorbike company cannot run their organization.

4. Currency rate: It is more important for changes of Rancon motorbike. Because, this
company buy their product in the dollar prices. This company senior manager gives the
information that before two years dollar prices increasing too much for this reason
company fall a certain amount of losses. It affected their business extremely.

5. Environmental Disaster: it is more common unexpected problem of the Rancon


Motorbike. Because Bangladesh is more disaster country. For this reason, economic
growth falls down. As company distributer are separated all over the count. In some sity
get more treble. So, this distributer facing more problem.

Hence, The Rancon Motorbike ltd. re getting many unexpected problems in the organization and
their top lavel manager try to solve their best once to prevent this type of problem. Now, this
organization can be taken several steps against this crisis situation.

19 | P a g e
Conclusion

20 | P a g e
References
1. Robbins, S. and Stuart-Kotze, R. (2016). Management. Scarborough, Ont.: Prentice-Hall
Canada.
2. Breaking News: New Suzuki Motorcycle Price In Bangladesh 2017 - Huge Price
Reduction. (2017, December 11). Retrieved April 17, 2018, from
https://www.bikebd.com/new-suzuki-motorcycle-price-in-bangladesh-2017/
3. Buchanan, Leigh (1 March 2011). "A Customer Service Makeover". Inc. magazine.
Retrieved 29 Oct 2012
4. SS Gulshan. Management Principles and Practices by Lallan Prasad and SS Gulshan.
Excel Books India. pp. 6–. ISBN 978-93-5062-099-1.
Appendix
Questions
MD Al Amin
1. When the new employees joined in the organization, what types of different activities are
doing for the skill improvement?
2. What is the core work activity which needs to be specialized workers?
3. Which departmentalization technique you are using for your organization?
4. Do you use multiple themes for departmentalization?
5. Does your organization use any teams for problem solving?
6. Which team in your opinion is crucial for crisis situation?
7. Does your organization provide certain types of benefits to the employees?
8. Do these benefits motivate the employees?
9. When there is any situation which needs to be handled carefully than who has the
responsibility for solving that situation?
10. Does your organization use any kinds of networking structure?

Fariha Fairot Proshanti


1. How do the employees know about the organizations culture and value?
2. How does the organization orient its employees?
3. What are the facilities for employees?
4. Does the organization have any story from which employees can know about the
organization?
5. Who are the customers?
6. How does the organizations face challenges?
7. What do they do during economic crisis?
8. Does this organization face any political problem?

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