Jail Industry in Nepal

Topics: Capacity utilization, Government, Cement Pages: 28 (8659 words) Published: August 17, 2012
Executive Summary
Hetauda Cement Industry Ltd. was established in 1976 A.D. under the government undertaking with the core objectives of the production of cement. In the market, there are many private and government agencies engaged in this kind of manufacturing. Hetauda cement industry has the core competitors like Udayapur Cement Industry (government) and many private cement factories. Hetauda cement industry is the single company to produce clinker in Nepal. It has the very good credit over the market. The capacity of the Industry is 750 Metric Ton per day or 16000 bags of Cement per day. The annual capacity is 260000 MT. The cement industry is operating with many difficulties in the market like labor union issues, strikes and lockouts. The major strengths of the company are market coverage, quality, market credit, government supports etc. The major weaknesses are union stress in the organization, capital, over staffing, cumulative loss, old technologies and so on. Besides this the company has good opportunities from the market in regard of raw material, government support, availability of clinker, investment opportunity to third party, and the failure of key competitors like Himal cement factory and other private organizations. The major threats of the organization are external labor unions, government appointment process of top level management, foreign interest on the cement industry of Nepal as a whole etc. The company has short term objectives of better utilization of raw material, wastages management, managing overstaffing, increasing the annual turnover. It has medium term objectives of optimization of plant capacity, maintenance of plants, management of labor unions, and lessen the cumulative loss. The long term objectives are capital enhancement, replacement of plants, realizing corporate social responsibility, quality assurance to consumer. The structure of the organization is top to bottom and is supported by vertical chain of command. It has no organizations functions like marketing and human resource. The structure is not appropriate in the context of modern management where its competitors are getting closer to the latest technology. The company has not updated in plant and is operating by using of old plants. It has no customer relation management. There is neither front desk nor any other unit to deal with customer in the industry. Organization behavior is less understood by the management. Further this, the company has facing a lot of challenges in regard of human resources. The company is running with over staffing problem and it has no recruiting task since last decade because of over staffing. The company has many beneficial schemes to the employee working in the organization for self retirement and normal retirement. The company is providing the life insurance to the employee and a lump sum package to the employee. Whatever the company is facing the challenges the company has abundance opportunity to succeed over the market if it gives the enough opportunity for the advancement of the company brand image. It is getting a good response from the market in terms of turnover without having any marketing policies. The company needs to be operated in its maximum capacity for which plant replacement and capital enhancement has to be done. Labor unions should be managed properly and employees and line mangers should be provided with training and development opportunity. The company should be able to generate positive work environment and it should foster the corporate social responsibility over the nation. Parallel concern should be given in the management of wastage so that the company would not be noticed by the environmental issues besides its quality slogan.

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Bibliography: Books
Marketing Management; A South Asian Perspective, 13th edition, P. Kotler.
Annual report, Hetauda cement Industries Ltd, 2009
Annual report, Hetauda cement Industries Ltd, 2010
Annual report, Hetauda cement Industries Ltd, 2011
Web Sites
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