hrm final draft
TRANSCRIPT
Chapter 1
Background of the Beverage Industry of Bangladesh
Beverages have a massive market in Bangladesh because of the huge population density derived
demand.After independence the food habit of Bangladeshi people has been changed a lot.
Besides our traditional food consumer of Bangladesh like to take western food also after 1980s.
As a result of global marketing this was not too hard for the consumers. Different foreign food
companies were established in Bangladesh. Beverage industry is one of them. But more
interestingly we don’t know beverage is also our cultural food because beverage doesn’t mean
only carbonated drinks. Yoghurt, soup and lacchi are also beverage of our own tradition which
consumed for the last 100 years in Bangladesh. But carbonated beverage is new in Bangladesh.
Carbonated beverage entered into our market in the later part of 1980. At that time there were
only few companies in Bangladesh. But by the change of time and western culture influences it’s
become very popular in Bangladesh. By year 2000 more than 12 Beverage Company operating
business in Bangladesh and most of them are foreign companies. (Bangladesh Beverage: 2006)
The Beverage market in Bangladesh consists mainly of seven companies. Of these, Pran and
Mojo are the only local brands. Coca-Cola, with its three varieties, namely, the cola-flavored
Coca-Cola, the clear-flavored Sprite and the orange-flavored Fanta, is the number one soft drink
producer in Bangladesh, as well as all over the world. Closing in on Coke is rival Pepsi. Pepsi is
one of the oldest brands in Bangladesh. Pepsi first arrived in Dhaka in 1976 with the cola-
flavored Pepsi, the clear-flavored 7up, the orange-flavored Mirinda and later introduced the
mango-flavored Slice. Pran, on the other hand, started with jam, jelly and pickle. In 1995, it
started producing mango bottled juice, and is currently operating all over the country. Virgin is
renowned worldwide through its brand name. It was introduced in our country by Global
Beverages Ltd. RC Cola entered the Bangladesh market in 1997, and was the first to introduce
the cloudy lemon flavor. It has not been long since Akij group brought out Mojo and Lemu.
They have already gained huge popularity.
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At present Bangladesh has a very competitive market of beverage. Bangladesh has a relatively
hot weather and people tend to be thirstier. So they prefer to take soft drinks most of the time.
Beverage took the market of Bangladesh in the first half of 1980. In that time two or three soft
drinks were available in the market. But now lots of beverage found in the market. Some of them
are popular and some are not so popular.
List of beverage industry in Bangladesh
No Name of manufacturer Brand Year of establishment
Total workforceOf the group
1 Abdul Monem Limited Coca-Cola, Sprite, Fanta
1982 6000+
2 Agriculture Marketing Company Limited Pran 17 March 1981 30,000
3 Akij Group Mojo, Lemu,Frutica 2000 32,000
4 Global Beverage Limited Virgin 1999 n/f
5 Globe Soft Drinks Limited Uro cola Uro Loemon
2002 n/f
6 Partex Beverage Limited RC Cola, Lychena 6th October 1997
10,000+
7 Transcom Beverage Pepsi, 7up, Mirinda 1976 8000+
Source: various (*n/f=not found)
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Chapter 2
The Journey of Transcom Bangladesh Limited
Transcom originated with tea plantations in 1885 and is today one of the leading and fastest
growing diversified business houses in Bangladesh employing over 5000 people. Not many
industrial groups in Bangladesh can claim a history of continuous business pursuits stretching
over 100 years. Initially, tea and later jute formed the backbone of the family business. Although
these are still part of the activities, they contribute marginally to the overall group turnover.
These early industrial ventures have moved over to businesses involved in high-tech
manufacturing, international trading and distribution, forming strong ties with a host of blue chip
multinational companies. In recent years, Transcom has emerged as an increasingly significant
media house in Bangladesh. This is the flagship and holding company of the Transcom
enterprises. Transcom Limited is the flagship and holding company of the Transcom enterprises.
Since the beginning of its journey it has been very successful at whatever area it ventured into.
All of its SBUs be it beverage industry or electronics industry or any other Transcom has always
tried to maintain highest standard. Two highest circulated news papers The daily Star and
Prothom Alo both are best news papers in Bangladesh are owned by Transcom Group. Samsung
hand sets which has become very successful for its smart phones is a part of Transcom Mobile
Ltd . Eskayef Bangladesh Limited (leading pharmaceutical manufacturer – formerly SmithKline
& French SK&F) which is another renowned brand in Bangladesh and it also a SBU (startigic
business unit ) of Transcom group. Transcom food is the sole franchise of KFC and Pizza Hut
both of which are highly successful brands worldwide and also in Bangaldesh. Highest sold soft
drinks in Banglsdeh Pepsi,7 up, Slice are beverage product of Transcom Bevrage Ltd.
Transcom’s latest incorporation is Aquafina bottle water in 2014 which is a very reknownede
product of PepsiCo .the success story of Transcom group goes on and on .within the last 150
years it has evolved into one of the best business conglomerate in Bangladesh.
(http://biac.org.bd)
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Transcom Today
These early industrial ventures have moved over to businesses involved in high-tech
manufacturing, international trading and distribution, forming strong ties with a host of blue chip
multinational companies. In recent years Transcom has emerged as an increasingly significant
media house in Bangladesh. TRANSCOM is now dealing with several other companies located
in the overseas countries. Day by day the organization is expanding.
1. Distribution: Transcom distribution Co. Ltd. Beverage Distribution Ltd. Transcom Electronics Ltd. Philips Lighting. Transfin Finding 2nd
Trinco Ltd. Tea Holdings Ltd
2. Manufacturing: Bangladesh Electrical Industries Ltd. Bangladesh Lamps Ltd. Transcom Beverage Ltd. Eskayef Bangladesh Ltd.
3. Media : ProthomAlo Daily Star Anandadhara Saptaik 2000 Transcraft Ltd.
4. Tea : M. Rahman Tea Co. MonipurTrea Co. Ltd. Marine Tea Co. Ltd. Heritage Tea
5. Associates: W. Rahman Jute Mills Ltd. Reliance Insurance Ltd. Media World Ltd.
(source:edupedia.educarnival.com)
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Transcom Beverage Limited
On the basis of an exclusive Franchise for Bangladesh from Pepsico USA, TBL acquired three
modern bottling plants at Dhaka, Chittagong and Bogra from BBIL, Dhaka; EBIL, Chittagong
and NBIL, Bogra; in March 2000. TBL manufactures the famous Pepsi range of beverages-
Pepsi, 7up, Mirinda Orange, Mirinda Lemon, Slice and Soda. As a corporate citizen Pepsico
believes it has a responsibility to contribute to the quality of life in our communities. TBL has
put into action this philosophy through support of social agencies, projects and programs and the
scope of this support is extensive and it has not been difficult to blend with this philosophy since
the TRANSCOM group also followed such a corporate ideology. The main factory of Transcom
Beverage is located in Telichara, Mouchak, Kaliakair, Gazipur. They also have two regional
factories in Chittagong and Bagura.
Products of Transcom Beverage Limited
But the main two products of Transcom Beverage Limited are 7 up and Pepsi. Though there are three other supporting products (Mirinda, Slice and Soda) added later. (History of Transcom: 2008).
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Step 03Central issues of Transcom beverage ltd
Motto of Transcom beverage ltd :
Motto OF Transcom beverage ltd to deliver sustained growth in Bangladesh and move towards
dominant Beverage Company, delighting & nourishing every Bangladeshi, by best meeting their
everyday beverages needs & stakeholders by delivering performance with purpose, through
talented people.(www.transcombd.com)
Since TBL is a franchise company of PepsiCo. Transcom Beverage Ltd follows the same
mission vision as PepsiCo.
Mission:
Its mission is to be the world's premier consumer products company focused on convenient foods
and beverages. We seek to produce financial rewards to investors as we provide opportunities for
growth and enrichment to our employees, our business partners and the communities in which
we operate. And in everything we do, we strive for honesty, fairness and integrity.
Vision:
PepsiCo's responsibility is to continually improve all aspects of the world in which we operate -
environment, social, economic - creating a better tomorrow than today..
(www.pepsico.com)
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Different slogan and tag line used by TBL products
Beverage name Slogan/tagline Logo
Pepesi cola “Yea Dil Mange More Aha ………………….”
7 up “mon bole I feel up”
Mirinda Ahhaaaaaaaaaaaaaaaaa
Mirinda lemon “Zor Ka Zahka Dhirasa Lagi”
Slice Simple Joy ka Raas
Mountain dew 'Darr ke aagey jeet hai'
Aquafina Pure Water. Perfect Taste
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Business policy of Transcom beverage Ltd:
Transcom beverage Ltd is the exclusive PepsiCo Franchisee for Bangladesh. A franchisee ship is
an agreement or license between two legally independent parties or companies .Pepsi first
arrived in Dhaka in 1976 with the cola-flavored Pepsi, the clear-flavored 7up, the orange-
flavored Mirinda and later introduced the mango-flavored Slice finally Aquafina . Pepsi which was already a
very established brand worldwide captured the Bangladeshi market very quickly after being introduced.
As a franchisee company TBL has to abide by all the rules and regulations set by PepsiCo. Transcom beverage
has the right to use pepsico’s brand name, take technical support, financial support, if needed PepsiCo also trains
TBL employees for mastering new techniques .TBL is obligated to comply with complete method set by
PepsiCo to conduct its business, such as the marketing plan. In return TBL has to pay certain amount of
fees and royalties to its franchisor. All rights of both parties are legally protected and in case of any incompliance
franchisor has the right to cancel agreement with franchisee. (www.franchise.org)
Marketing strategy of Transcom Beverage Ltd:
TBL mostly rely on PepsiCo for marketing their products.TBL undertakes many kinds of
marketing activities for its products. Advertising, promoting, packaging, sponsoring and many
other activities are part of marketing.
Pepsi products are advertised and promoted all over the world and its marketing strategies and
advertisings vary based on different countries, regions, and cultures. Billions of dollars is being
spent for advertising pepsi products every year. In Bangladesh TBL (Transcom Beverage Ltd)
advertises its products through different broad cast media like Tv, radio, internet, print media
like news paper, magazine, billboard etc.TBL also undertakes different kind of promotional
activities reduction of price, different kind of quiz competitions organized by TBL. It also
sponsors different kind games , events, concerts etc all of which are part of Transcom’s
marketing strategy.
Its target customers are normally young people aged between 10 to 35. Apart from these low
price, attractive packaging, diverse product offerings are also part of TBL marketing strategy.
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Production strategy of Transcom Beverage Ltd. (TBL)
Production strategies are long-term action plans of the organization, for the production of goods
and services. It includes the investments to be made, the goods and services to be produced,
technology to be used, and schedule to be followed. (http://kalyan-city.blogspot.com)
For producing TBL products three production plants have been established in Dhaka,
Chittagong, and Bogra. For smooth distribution it has divided the whole Bangladeh into three
different regions. There are hundreds of distributors of TBL who distribute its product all over
Bangaldesh. Production of its products are conducted in four phases first step bottle processing
and production then comes syrup production then syrup processing finally bottling the final
product. Since the demand of TBL products varies based on different seasons and occasions
(Eid, puja,etc) the number of units would be produced is determined based on order placed by
distributors. If too many numbers of products are produced and they are needed to be stocked in
warehouses that would increase production cost and if the number of units produced is few then
TBL would lose valuable customers.
Figure: production and distribution strategy.
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Chapter 4The HRM Practices and Strategy
Recruitment
Recruitment refers to the process of attracting, screening, and selecting qualified people for a
job. For some components of the recruitment process, mid- and large-size organizations often
retain professional recruiters or outsource some of the process to recruitment agencies.
The recruitment industry has four main types of agencies: employment agencies, recruitment
websites and job search engines, "headhunters" for executive and professional recruitment, and
niche agencies which specialize in a particular area of staffing. Some organizations use employer
branding strategy and in-house recruitment instead of agencies. Recruitment-related functions
are generally carried out by an organization's human resources staff.
The stages in recruitment include sourcing candidates by advertising or other methods, screening
potential candidates using tests and/or interviews, selecting candidates based the results of the
tests and/or interviews, and on-boarding to ensure the candidate is able to fulfill their new role
effectively. (Smith)
The Recruitment Process
Recruitment process is a crucial thing in every organization. Transcom Beverage Limited
follows few steps to select candidates to have them in the organization. For recruiting candidates
for the selected position the company posts advertise in newspapers, websites (For example-
Prothom alo jobs, Bdjobs.com) etc. HR department collect applications externally by this way.
Internal recruitment sometimes encouraged by the authority. Walk-in interviews also being
encouraged to fulfill the vacancies. After getting the CV’s of the candidates, the HR recruitment
department short list few candidates if they fulfill the requirements of the organization’s position.
Then for below manager level position the applicants have to sit for the written test and if they
qualify the exam, HRD asks for the oral test of the candidates. In the interview session
interviewer asks questions to the interviewee according to the position. Formed questions,
relevant questions and irrelevant questions are basic question pattern in the interview. HR head
and other departments head take the interview of the candidates. For example: if the organization
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look for finance executive then head of finance will also be there to conduct the interview. Then
the candidates have been chosen by the merit list. Finally, the interview panel negotiates about
the remuneration with the candidates and selects the right person for the right position.
Diagram of recruitment and selection process of Transcom Beverages Limited is given below:
Figure: Recruitment and selection process of Transcom Beverage Limited
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RecruitmentSpecification and job advertisement
1st Selection round:Written testAssessmentShort list
Final selectionRound:Job offerAcceptance
2nd selection round:InterviewReferenceCheck
Pre-selection round:CV screeningLong-list
HiringAnd induction
Job Analysis
Job analysis is another important part of recruitment and selection process. Job analysis means
the process of determining job duties of these positions and the characteristics of the people to
hire for them. Job analysis consists of two parts.
a. Job description
b. Job specification
Job description
Few jobription criteria of Transcom Beverage Limited are given below:
Transcom Beverages Ltd
Address : 10th Floor, Gulshan Tower, Plot # 31, Road # 53, Gulshan Northe C/A Web : www.transcombd.com Business : Transcom Beverages Limited, the franchisee of Pepsi, 7up, Mirinda, Slice, Mountain Dew and Teem for Bangladesh is looking for dynamic and competent professionals to fill the following positions. The Company provides competitive remuneration, excellent job environment for career growth of individuals and practices a performance culture, where talent and creativity are recognized and rewarded.
Position : Assistant Engineer/Engineer (Mechanical)
Area: Chittagong | Category: Engineer/Architects
Job Description/ Responsibility:
Design, implement, maintain, and improve instrument, equipment, facilities, components, products and system for commercial, industrial, and domestic purposes
Operate computer assisted engineering and design software and equipment to perform engineering tasks
Supervise and coordinate manufacturing, installation, maintenance, support, documentation and testing activities to ensure compliance with specifications, codes and customer requirements
Inspect completed installations and observe operation to ensure conformance to design and equipment specifications and compliance with operational and safety standards
Perform detailed calculations to compute and establish manufacturing, construction and installation standards and specifications
Oversee project production efforts to assure projects are completed satisfactorily on time and within budget
Job Nature: Full Time
(www.jobsctg.com)12
Job Specification
A list of a Job’s ‘human requirements’, which is the requisite educational skills, personality, and
so on- another product of a job analysis.
EDUCATIONAL REQUIREMENTS B. Sc (Mechanical) from recognized University/BIT
EXPERIENCE REQUIREMENTS
Min Experience: 2 Years Max Experience: 3 Years
REQUIREMENTS
Must have good and pleasant interpersonal skills and leadership qualities to lead his team in a factory environment
Computer literacy (MS Office) must.
ADDTIONAL REQUIREMENTS
Age range 25 years to 30 years Job level: Entry Level job
(www.jobsctg.com)
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Promotion Practices
Transcom Beverage limited practices promotion in their organization. Every employee of the
organization has been given target and objectives to fill up in certain times. The company does
not follow any fixed promotion criteria. But if an employee fulfills the targets and objectives
given by the organization for last three consecutive years, then the department head can
recommend the employee for a promotion. Transcom Beverage maintains grading system in the
promotion criteria. For example: officer is the first grade of that company, then executive, senior
executive senior, assistant manager, manager etc. comes consecutively.
Transcom Beverage Limited does not believe in demotion process. This organization always
prefers to give a second chance to an employee. An employee gets target or objective to fill up
when he or she joins the company. If the employee cannot do the job perfectly then the authority
thinks to change the department or discipline of the employee. After that if the employee
performs well then he or she can continue the job.
Training and Development Practices
Training and development practices are the crucial and most important part of Transcom
Beverage Limited. After joining the job every single employee has to go under the training
session for ten days. This orientation process performs in every single department of this
company. Every single employee gets the training session on sales and production system of the
company. For example, who joins in finance department that person has to take training on
marketing, sales, production and finance. In sales department the orientation process can go up to
ten days and in finance department the orientation process goes up to fifteen days. The training
process held from desk to desk after three or four days of the orientation.
Both on the job and off the job training session held in TBL. For off the training TBL follows
role plying, lecture methods, conference and discussion method. According to the need of
training and development the total procedure arrange by TBL. If the department (HR, Finance,
Marketing & Sales) thinks that lecture method can be useful for the job then the department
arrange the training session according to that.14
Figure: HR Paradigm of Transcom Beverages Limited
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National Culture
Job Analysis
Attracting
Recruiting & Selection Testing & slection Interviewing Candidates
Training & development Performance appraisal management
Orientation/ Induction
Developing
Maintaining
Benefits & services Training & development Ethics, justice & fair treatment
Health & safety
Corporate Cultute HRM Paradigm
Performance Appraisal and Management Practices
Annual performance appraisal from every department is being conducted in Transcom Beverage
Limited. On the basis of performance appraisal reward, bonus, increment etc. are being decided
and within December to January this performance appraisal is being conducted.
Compensation, benefits, pay strategy practices
Reward
At the beginning of the year Transcom Beverage Limited gives target and objectives to the
employees and it basically happens in the sales sector. If an employee performs 90% of the target
then he/she will get a fixed amount as a reward. In case of 100% fulfillment of the target the
employee will get additional salary of one month and if it increases to 110% then the employee
will get some extra award from the authority.
Benefits
Except basic salary the company provides extra benefits to the employee. Monthly the employee
get gross salary which includes house rent, medical allowance, insurance etc. Beside this
employees get two festival bonuses. Another benefit is given to the employee that is WPBF
(Workers profit budget and fund). Group insurance is also covered by the organization as well as
provident fund which is contributory by the employee. Employee contributes 10% of the salary
and the company also provides extra 10%.
Bonus
In every two Eid employees get festival bonus. Managerial level’s employee also get bonus
according to the performance of the company and they get a good amount of money if the
company perform well.
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Salary & increment
Every year this company offers increment of salary (12% to 20 %) and their average increment is
15%. For the worker Transcom Beverage Limited’s pay scale start from BDT 7000 (basic salary)
and officers’ pay scale start from BDT 14000 (basic salary).
Ethics, Justice, Fair treatment practices
In every day to day activity Transcom Beverage Limited practices transparent ethical treatment.
In the training session they organize ethical training practice conference. This basically
emphasize on the leadership training.
Fair treatment practice is used by this organization. If an employee’s performance become poor
and the organization want to go for the legal action then first of all they give a show cause notice
and the employee have the chance to self-defense. The organization also makes an inquiry team
and gets a report about the employee. According to the report what answers they get based on
that the organization take disciplinary action. This company also maintains fair policy about
sexual harassment. If the case seems to be serious then disciplinary action has been taken and if
it is not that a serious issue then the company goes for counseling of that employee.
Labor relations practices
Transcom Beverage Limited follows 99% of the labor laws. For example, they give four months
maternity leave to the female employees. Every two years trade union leader is elected from the
nomination of CBA leader. Transcom Beverage also follows the safety guidance given by the
Pepsico. and training session has organized by the civil defense and fire brigade every single
year. Transcom also follows the grievance procedure properly.
(N, 2014)
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Organogram of Transcom Beverage Ltd
(Source: personal interview with GM of TBL)
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Chapter 5Business achievements / success story of Transcom Beverage Ltd (TBL)
Trancom Group started its journey in 1885 with tea plantation later it involved itself with jute
gradually over the last 125 years it has emerged as a diversified company. Over the years
Transcom Group has ventured into beverage, media, electronics, foods and many other
industries. Now Transcom has partnership with international brands like Pizza Hut, KFC,
PepsiCo and Philips. It has annual turnover of more than $350 million (nearly Tk 2,800 crore),
the group employs over 10,000 people. (Daily Star: 18, 2012)
Transcom Beverage Ltd is one of the most successful SBU of Transcom Group. The beverage
company started its journey with the motto to deliver sustained growth in Bangladesh and move
towards dominant Beverage Company, delighting & nourishing every Bangladeshi, by best
meeting their everyday beverages needs & stakeholders by delivering performance with purpose,
through talented people. (http://www.transcombd.com) .TBL started as a franchise company of
PepsiCo and now producing PepsiCo’s beverage products in 3 production plants in Bangladesh
where state of the art machineries are being used. TBL’s latest incorporation is Aquafina in
April, 2014 in its product category which is a very renowned brand of PepsiCo.
Since the beginning TBL has been very successful it meeting the demand of its consumers and at
the same time employees working here is also considered highly satisfied. Ethics and values
have always been the guiding force of TBL. Due to outstanding performances, high ethical
practices and for maintaining commitment to social responsibility Transcom Group’s chairman
Mr. Latifur Rahman was conferred with prestigious ‘’ Oslo Business for Peace Award’’ in 2012
Products of TBL have been highly successful in Bangladesh. In 2012 7UP won the award for
No.1 soft Drink in Beverage Category by Bangladesh Brand Forum. It has also obtained 9th
place among all the brands in Bangladesh at the same event. Which are testaments of TBL’s
product’s high quality.
In 2011 TBL also received honorable ‘’President Ring of Honor Award’’ from PepsiCo for
outstanding performance and extraordinary sales number in its region. Transcom Beverages 19
Limited (TBL) won ‘International Bottler of the year award’ for the third time in recognition of
the outstanding business results in 2009. The success story of TBL goes on and on like this.
(http://www.transcombd.com)
Chapter 6
Unique HRM strategy and achievements
Transcom beverage unique HRM policy involves those guidelines, which make sure by effective
and efficient HRM policy. They believe in standard of flexible and vibrant and may require
adjustment to different scenarios. Hence its accomplishment will be inspired by sound judgment,
agreement with according to present low. As Transom beverage is operating across the world, it
is important that regulation and practices be appreciated everywhere. The Transcom beverage
Management and Leadership Principles include all the possible ways for stimulating Transcom
beverage employees in their action and in their dealings with others. The Corporate Business
Principles state to all the basic rules, which Transcom beverage approve and subscribes to on a
worldwide basis.They address the following basic human resource issues when putting together
their personnel policies:
Equal Employment Opportunity policies
Employee classifications
Workdays, paydays, and pay advances
Overtime compensation
Meal periods and break periods
Payroll deductions
Vacation policies
Holidays
Sick days and personal leave (for bereavement, jury duty, voting, etc.)
Performance evaluations and salary increases
Performance improvement
Termination policies
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2009 was imaging year for Transcom Beverage LTD because in this year they win sever award
among this some of national some of international .In addition Transcom beverage limited (LTD)
won the international bottle of the year award for the third time in reorganization of ousting
business awards and 7up won the number 1 soft drink in Beverage category by Bangladesh
brand forum .it has obtained nine place among all brand in the same event .This two
achievementmake them create a unique culture In corporate world more specifically among their
competitors.
Company growth analysis
Transcome beverage limited is vibrant and fast moving. More specifically, the TBL soft rinks
category has been significant growth in the last five years by quality of its relative puerility and
strong consumer demand. At present Transcome beverage growth is $2.4B in the Bangladesh
market and $1.6B internationally. Growth in the energy drink sector for 2009 was 8.7% in the
Bangladesh and 27.8% internationally. This illustrates the size of the opportunity for beverage to
continue increasing their market share in the Bangladesh, expanding their impression
internationally, and entering emerging markets. The recent economic downturn caused a
slowdown in the sale of energy drinks, which are “among the most expensive non-alcoholic
beverages on the market. Sales growth slowed to 10.7% in 2008, following average growth of
46% during 2009-13.However, energy drinks was one of the few beverage
(Placeholder1)categories to experience positive growth during this downturn.
Teens typically consume energy drinks for the taste and the “cool factor,” college students for a
combination of energy and taste (or to mix with alcohol), and young adults for their energy
benefits. Usage of energy drinks among teens is currently around 36%, which is more than twice
that of adults at 15%. Teen girls are nearly as likely to use energy drinks as teen boys, but among
adult women are significantly less likely to drink energy drinks than are men. When it comes to
energy shots, teens are still the consumption leaders. Energy drinks offer busy adults the stamina
to deal with increasingly demanding lives.
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Margin and Growth Analysis
Last year Transcome beverage has experience positive revenue growth rate amounting 7.9%.
TBL revenue growth over the last two years has been a staggering 26% per year versus 8% for
its competitive group. From a firm valuation perspective, Transcome beverage is trading at 2.5x
revenue and 12.9x EBITDA, which is higher than its competitive group. This is evidence that the
market places a high value on Transcome beverage future growth opportunities. From a
profitability standpoint, Transcome ROA last period was 18.4%, while the median of its
competitive group was 11.8%. From a margin perspective, Hansen’s is in line with its
competition for gross margin, EBITDA margin, and net income margin. The company produces
unlevered free cash flows (FCF) of 8.8% of revenues compared to a median of 10.3% for its
competitive group. B3 Consulting doesn’t see this as a problem because the company has been
making some large capital investments and growing quickly which all contribute to lower
unlevered FCF.
(Financial data collected from Transcom beverage)
Discussion of Transcom beverage ltd’s strength and weakness in a limited scale
Transcome beverage Ltd is leading Soft Drinks Company in Bangladesh. They practice best
human resource that make them unique leader in the market. Also for these reasons they get
some remarkable achievement in 2009.TBL considering 2009 is golden year for transom
beverage. Moreover employee attrition rate in Transcome beverage limited is below five percent,
which clearly indicate that they practice best human resource. However turnover rate in the
marketing department is relatively high .normally who are young fresh graduates just entered in
the job and working in TBL below one year ,they tend leave their job more .this is definitely an
weakness of TBL.
(source :personal interview with NK Bhowmik GM of TBL)
22
Chapter 7Conclusion
As a company that is hundred years old, Trasncom has almost tried all of the strategies there can
be. Transcom Bangladesh Ltd expanded internationally, helped countries’ economical grow,
became environmentally conscious and created joint ventures with other companies which has
enhanced Transcom’s and these companies’ performance by few folds .it has also created job
opportunities for thousand of Bangladeshi workers. Finally it can be said that Transcom has
stood out an idol for other companies, it has immerged as an epitome of quality and standard.
The thing that would make Trasncom successful is that the proper plan of HR department of the
organization through the execution. Some recommendations are as followed-
Transcom Bangladesh Ltd. is quite effective at sourcing the candidates. They follow
almost every ways which lead to find a good class of employees. But, they skipped one
source and that is finding candidates from former employees. They can reduce their
training and orientation cost by recruiting candidates from former employees.
Transcom favors competitive, stimulating and fair remuneration structures offering an
overall competitive and attractive compensation package. Remuneration includes salary,
any variable part of remuneration as well as social, pension and other benefits. Each
operating company will establish a compensation practice taking into account relevant
external compensation levels as well as the requirement of internal fairness. It is
recommended to undertake regular surveys so as to gather relevant information on the
remuneration levels practiced at a local or national level.
Job satisfaction is quite high in Transcom Bangladesh Ltd.’s employees. The main reason
for this is the employees can shift their department quite easily according to their needs
and skills informing it to their immediate supervisor. So, Transcom Bangladesh Ltd. is
being able to keep their employees satisfied.
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Discussion questions
What are the core products of TBL?
What are the production strategies followed by TBL?
Describe marketing technique of TBL.
What is the mission and vision of TBL?
What is the business policy of TBL?
What is the recruitment process of TBL?
Is there any recruitment tracker maintained?
If yes then how transparent it is?
If no then what measures have been taken to maintain the tracker?
What is the maximum time for the vacant position to be closed?
Does the job responsibilities and job description are clearly defined to the candidates
appearing for selection process?
What types of criteria are being followed by TBL for promotion practices?
What type of training process is followed by TBL?
What are the main challenges (topics) in your office regarding Training& Development at the moment?
What strategies are followed in TBL for compensation and benefits management?
Do the company pay extra bonus to the employee for outstanding performance?
Do the company have any specific system for the incentive of the employees? What
are they?
Does TBL practice labor relation practice and fair treatment?
Briefly describe the performance appraisal of TBL.
After having the performance appraisal test do the company maintain any follow up?
What are the unique HR strategies practiced by TBL?
What is the yearly financial growth rate of TBL?
What are major HR strength and weakness of TBL?
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References
(Transcom Beverages Ltd. (2014). Transcom Beverages Limited (TBL) won the
International Bottler of the year award. Retrieved from
http://www.transcombd.com/index.php?
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year&Itemid=18&lang=en)
(Transcom Beverages Ltd. (2014). 7UP won the award of No.1 Soft Drink in
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option=com_phocagallery&view=category&id=2%3A7up-no1-softdrink-in-
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(International franchise Association. (2014). what is a Franchise. Retrieved from
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(PepsiCo. (2014). Our Mission & Values. Retrieved from
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(Kalian city life. (2013). What are Production Strategies. Retrieved from
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( N.K. Bhowmik, organizational Organogram and overall HR practice of TBL, April
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James, Smith. (2011, August 5). Planning the recruitment process – What you need to
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Jobsctg.com. (2013,December 27). Retrieved April 6, 2014 from
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Mechanical#sthash.LQsvBIPC.dpbs
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