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AN INTERNSHIP REPORT
ON
VALUE CHAIN ANALYSIS OF HANDICRAFTS PRODUCT AT
THANAPARA SWALLOWS DEVELOPMENT SOCIETY (TSDS)
Submitted By Supervised By
Md. Musfiquzzaman
ID NO- 1710085120
MBA 16th
Batch (Evening)
Major: Marketing
Institute of Business Administration (IBA)
University of Rajshahi
Dr. Md. Shariful Islam
Professor
Institute of Business Administration (IBA)
University of Rajshahi
Institute Of Business Administration (IBA)
University Of Rajshahi
LETTER OF TRANSMITTAL
To
Dr. A. K.Shamsuddhoa
Director
Institute of Business and Administration (IBA)
University of Rajshahi.
Subject: Submission of the Internship Report
Dear Sir:
I would like to submit my internship report titled “Value chain analysis of Handicrafts product
at Thanapara Swallows Development Society (TSDS)”, which has been prepared as a
requirement for the completion of the MBA Program.
While working on the report, I have tried to follow each and every guideline that you have
advised. It has been a very enlightening experience to work in this new venture and I have
thoroughly enjoyed my internship period at TSDS. The authority of TSDS has also extended
their cooperation whenever required.
I, therefore, would like to request you to accept my Internship report and oblige thereby.
Thanking You
Sincerely Yours,
MD.MUSFIQUZZAMAN
Roll No- 1710085120
MBA 16th
Batch (Evening)
IBA, University of Rajshahi
ACKNOWLEDGEMENT
I would like to thank the internship Supervisor, Dr. Md. Shariful Islam, Professor, IBA, RU who
has helped me in every step of my internship. I am very much grateful to Mr. Md Raihan Ali
giving me the opportunity to complete my internship at TSDS. I am sure that their dynamic
managerial activities will give inspiration to anybody to build one's career properly. I also want
to thank all the team members of the Handicrafts section at TSDS, for their support that I have
been provided for preparing my report. I practically work with them, try to share their
perception, feelings and on the basis of my realization, I prepared report from my own point of
view.
Then at last I shall be grateful to those people who read this report and who shall get benefit
from this report at present and in future.
MD.MUSFIQUZZAMAN
Roll No- 1710085120
MBA 16th Batch (Evening)
IBA, University of Rajshahi
PREFACE
Thanapara Swallows Development Society (TSDS) is an organization where mainly women
work. The village women end their family activities and work in this organization in hopes of
earning extra income. Keeping in view the social and economic development of rural women,
Thanapara Swallows started the journey in the year 1973. About 130 families affected by our
liberation war belonging to this organization. The scope of the organization has increased over
time. The small organization currently has more than 200 employees. About 300 designs of
clothes are being made for ladies and gents.
When production rates are increasing day by day then must try to find new markets. The
collision has to be done with all domestic and foreign producers. There is no substitute for
increasing the value of the product so as to attract new buyers to the new market. In my report, I
tried to find Michael Porter's Value Chain Analysis Model with this organization. I searched in
different directions to create information. I tried to include all the things here.
I segmented my report into five chapters. Fast covers the introduction about the report; second
chapter covers the organizational overview of Thanapara Swallows Development Society
(TSDS). Third chapter consists of job experience of TSDS. Fourth chapter is for the analysis of
the value chain analysis of handicrafts sections at TSDS. Fifth chapter includes findings,
Recommendation, Conclusion and Appendix.
CONTENTS
CHAPTER ONE: INTRODUCTION……………………………………………1-6
1.1 Prelude………………………………………………………………………………………...1
1.2 Objectives…………………………………………………………………………………….2
1.3 Scope of the study………………………………………………………..............................2
1.4 Methodology of the study…………………………………………………………………….3
1.5 Research Tools.............................................................................................................4
1.6 Limitations of the study………………………………………………………………………6
CHAPTER TWO: AN OVERVIEW OF TSDS………………………………..7-17
2.1 Background…………………………………………………………………………………..7
2.2 Company Profile……………………………………………………………........................8
2.3 Mission ……………………………………………………………………………………….9
2.4 Vision…………………………………………………….....................................................9
2.5 Organizational Structure…………………………………………………………………….10
2.6 Organ gram of handicrafts section……………………………………………………….…11
2.7 TSDS handicrafts program…………………………………………………………………12
2.8 Products of TSDS handicrafts………………………………………………………………13
2.9 Present buyers list of TSDS handicrafts………………………………………………….…16
2.10 SWAT Analysis of TSDS Handicrafts Section………………………………………….17
CHAPTER THREE: JOB EXPERIENCE OF TSDS…………………………18-21
3.1 Description of the job……………………………………………………………………….18
3.2 Responsibilities of the job………………………………………………………………......19
3.3 Working Experience……………………………………………………………………...…20
3.4 Evaluation………………………………………………………………………………...…21
CHAPTER FOUR: ANALYSIS………………………………………………22-61
4.1 What is value chain…………………………………………………………………………..22
4.2 Value chain analysis of handicrafts product at TSDS………………………………...……..23
4.2.1 Inbound logistics………………………………………………………………...…23
4.2.2 Operations………………………………………………………………………….26
4.2.3 Outbound Logistics…………………………………………………………...……33
4.2.4 Marketing and sales………………………………………………………………..36
4.2.5 After Sales service…………………………………………………………………41
4.2.6 Procurement………………………………………………………………….…….43
4.2.7 Human Resource Management……………………………………………….……46
4.2.8 Technological development………………………………………………………..49
4.2.9 Infrastructure……………………………………………………………………….52
4.4 Cost drivers of TSDS handicrafts product……………………………………………...…55
4.5 Data Analysis based on buyer interview……………………………………………………..56
4.6 Output of value chain analysis……………………………………………………………....61
CHAPTER FIVE: FINDINGS, RECOMMENDATIONS AND
CONCLUSION……………………………………………………………...……62
5.1 Findings………………………………………………………………………………...……62
5.2 Recommendations……………………………………………………………………………65
5.3 Conclusion……………………………………………………………………………...……66
BIBLIOGRAPHY……………………………………………………………...…67
APPENDIX……………………………………………………………………68-69
LIST OF TABLES
Title Page No.
Table 1: The research concept …………………………………………………………………....4
Table 2: In depth Interview ……………………………………………………………………….4
Table 3: Focus Group interview ………………………………………………………………….5
Table 4: Secondary Data analysis sources ……………………………………………….……….5
Table 5: Organizational Profile ……………………………………………………………….…..8
Table 6: Buyers List……………………………………………………………………………...16
Table 7: Employee feedback about flexible production system…………………………………28
Table 8: Employee feedback about the prevention of product pre-mature failure ……………...31
Table 9: Employee feedback about the relationship between various departments…………..…40
Table 10: Data Analysis based on buyer interview………………………………………..….....56
LIST OF FIGURES
Title Page No.
Figure 1: Organizational Structure……………………………………………………………….10
Figure 2: Organogram of handicrafts section……………………………………………………11
Figure 3: SWOT analysis of TSDS handicrafts………………………………………………….17
Figure 4: Value chain Model………………………………………………………………….....22
Figure 5: Raw materials quality which is procured……………………………………………...24
Figure 6: Raw materials damage reduce strategy………………………………………………..25
Figure 7: Manufacturing process of Handicrafts cloths………………………………………….26
Figure 8: Flexible production system……………………………………………………………28
Figure 9: Product range…………………………………………………………………………..29
Figure 10: Regularly improve the appearance of the products…………………………………..30
Figure 11: Employee feedback about the prevention of product pre-mature failure………….…31
Figure 12: Use updated technology……………………………………………………………...32
Figure 13: Outbound Logistics…………………………………………………………………..33
Figure 14: Deliver products on time……………………………………………………………..34
Figure 15: Flexible delivery capabilities…………………………………………………………35
Figure 16: Relationships with suppliers and customers………………………………………….37
Figure 17: Offering high-quality information to customers……………………………………..38
Figure 18: Strategies to create brand awareness…………………………………………………39
Figure 19: Employee feedback about the relationship between various departments…………...40
Figure 20: Use technical assistance for Services………………………………………………...42
Figure 21: Reliable transportation system……………………………………………………….44
Figure 22: Machineries Quality………………………………………………………………….45
Figure 23: Reward policy………………………………………………………………………...47
Figure 24: Training program……………………………………………………………………..48
Figure 25: Using updated technology……………………………………………………………50
Figure 26: Research and development…………………………………………………………...51
Figure 27: Extensive database…………………………………………………………………...53
Figure 28: Advanced information system………………………………………………………..54
Figure 29: Cost drivers…………………………………………………………………………...55
Figure 30: Quality Consistency of product………………………………………………………57
Figure 31: Brand Preference……………………………………………………………………..58
Figure 32: Flexible payment terms………………………………………………………………59
Figure 33: Delivery capability…………………………………………………………………...60
Figure 34: Output of value chain analysis……………………………………………………….61
CHAPTER ONE
INTRODUCTION
CHAPTER TWO
AN OVERVIEW OF TSDS
CHAPTER THREE
JOB EXPERIENCE
CHAPTER FOUR
ANALYSIS
CHAPTER FIVE
FINDINGS,
TRCOMMENDATIONS &
CONCLUTION
BIBLIOGRAPHY
APPENDIX
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
CHAPTER ONE
INTRODUCTION
1.1 PRELUDE
Handicraft is considered to be an art. The process of manufacturing can be defined as low
technology fragmented and predominantly labor intensive one. This art is being practiced and
developed through generation to generation. The items often represent local culture. Handicraft
items are different from mass production or machine production. People working in this sector
earn their livelihood by making handicrafts item. Handicraft items are different from "arts and
crafts" as they meant to be used for something. Handicrafts maintain a fine line with mass
production and things made in the factories.
However to prepare this report, I worked in Thanapara Swallows Development Society
(TSDS). It was established in 1973 in assistance with The Swallows at Laud in Sweden. It has an
aim to assist the Bangladeshi women who were affected by the Liberation war in 1971. TSDS is
a 100% export oriented handicraft centre based on handloom. During our internship in the TSDS,
we almost worked in every Department of this centre and tried to find out the activities, planning
and many other things as well.
I have completed this report by examining all the department of Handicraft section, such as
Commercial Department, Production Department, Supply Chain Department, Human Resource
Department, MIS Department, and relevant organization like Fair Trade, Insurance Company,
Shipping Company of TSDS.
The main concern of this study is the Value Chain Analysis, the process to analyze the specific
activities through which firms can create a competitive advantage. It is useful to represent the
firm as a chain of value-creating activities. Michael Porter identified “a set of interrelated
generic activities” which share similarity with a wide range of firms.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
1.2 OBJECTIVES
Broad objective: Understanding the value chain activities of Handicrafts product at Thanapara
Swallows Development Society (TSDS).
Specific objectives: The specific objectives are the following.
 To understand the current value chain strategies of Thanapara Swallows.
 To explore how inbound and outbound logistics actually work for Thanapara Swallows
Handicrafts product.
 To identify proper linkage in this organization.
1.3 SCOPE OF THE STUDY
The study has many dimensions and covers a broad area. It focuses mainly on The Value Chain
Analysis which aims to grab the buyer’s attention and create a competitive advantage. To
perform this study skillfully all of the primary action and supporting activities of the process has
been covered effectively. In order to gain an insight into the process of The Value Chain analysis
of the TSDS which is already been mentioned in the introduction. Supply Chain Department,
Human Resource Department, MIS Department and the employees' statement and their working
strategy have been scrutinized and analyzed based on the relevant secondary data which could
have been performed even on a broader spectrum.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
1.4 METHODOLOGY OF THE STUDY
The research is conducted for finding out how Value Chain Analysis of handicrafts product at
TSDS is maintained, what things are considered and the tools used for this purpose. As
Thanapara Swallows has passed its 46 years of glorious journey, it has already a structured Value
Chain in action. My task is to find out the value and present it in this report in a structured way.
That's why, I visit the factory; collect information from the responsible manager and workers.
These Interviews have been administrated by formal and informal. Both structured and
unstructured questionnaire was used.
The methodology includes personal observation, interviews with the responsible person,
qualitative research and observations and secondary data analysis.
Primary Data Sources:
 Personal observation is first and strongest source of collecting information. A three
months window gives me a perfect opportunity to understand its activities.
 Interviews with the responsible person: In the report, primary data has been collected
through interviews with TSDS personality. Interviews have been administrated by formal
and informal discussion.
 Qualitative Research and Observations: A qualitative study will be conducted to
understand the relevant issues following certain surveys of experts (knowledgeable
persons), focus groups and in-depth interviews.
Secondary Data Sources:
 Web Portal of TSDS.
 Various books and article which are related in “Fare Trade” business.
 Newspaper article and online article.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
1.5 Research Tools
The tools will be used in the research are as follows -
In depth Interview Unstructured
Focus Group Discussion Unstructured
Consumer Observation Structured
Secondary Data Analysis Structured
Table 1: The research concept
In depth Interview:
Designation Sample
Size
Topic
Value chain TSDS
Handicrafts
2 What is the value chain Strategy of Thanapara
Swallows, how they are being implemented, What
factors are considered, controlling measurement
Research Team
Executive
1 How the database is managed, what type of data
are being stored, he procedure of collecting data,
the analyzing method
Manager Handicrafts 1 The procedure for measuring up marketing
investments and the necessary measurement tools
Factory-in-charge 1 The overall value chain project material
Table 2: In depth Interview
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
Focus Group interview:
Designation Sample
Size
Topic
The inbound logistics, operation,
outbound logistics, sales &
marketing, service
3 How the value chain is made up, what things to
be considered, the maintenance procedure
Table 3: Focus Group interview
Secondary Data analysis sources:
Topic Source
Value and value chain related theory Books, Article, Web site
Marketing and Marketing Related theory and
practices
Books, Article, Web site
Organizational Background Web Site of TSDS
Case Studies on Thanapara Swallows Web site, Internal Data base of TSDS
Handicrafts
Table 4: Secondary Data analysis sources
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
1.6 LIMITATION OF THE STUDY
The main limitation is I will not communicate with any direct consumer so I will miss the
consumer opinion about the product of Thanapara Swallows. For primary data analysis, I will
only have to rely on the information given to me by TSDS employees. Managers don't have
enough time to give the information elaborately. Another limitation is time constrain. It is also
possible that both sampling and non-sampling errors might exist.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
CHAPTER TWO
AN OVERVIEW OF
THANAPARA SWALLOWS DEVELOPMENT SOCIETY
2.1 BACKGROUND
Thanapara Village is located in the northwestern part of Bangladesh on the riverbank of Padma
(Ganges). During the liberation period in 1971, this quiet and peaceful village was transformed
when on the 13th of April, the Pakistani Army suddenly invaded the village and killed over 100
unarmed men. This massacre was the largest atrocity in the Rajshahi District during the war.
With the destruction of the male heads of household, the families in the village faced certain
destitution and hopelessness.
In 1973, the Swedish organization, The Swallows, hearing of the massacre and the resultant
desperation of the survivors, began a relief program on 1st October 1973 providing food and
clothing to the people of Thanapara named The Swallows Association for Social Voluntary
Service, Thanapara Project. The following year, a primary school was also started for the poor
children and a handicraft program for the war-affected women of the village.
Currently, a full-time staff and representative members from all of the village programs manage
the Society. The Handicrafts Program is a self-sustaining operation with 138 women and three
men working regularly. Since gaining full independence from the Swallows Sweden
organization on 1st July 1999, the Thanapara Swallows Development Society has been seeking
ways to make all programs sustainable without having to rely.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
2.2 ORGANIZATIONAL PROFILE
Name of the Organization : Thanapara Swallows Development Society (TSDS)
Founded : 1973
Executive Director : Md. Raihan Ali
Assistant Director : Mahmuda Begum Guinea
Manager (Handicrafts) : Mynul Haque Santo
Legal Status : NGO (Non Government Organization)
Registered Office : Vill- Thanapara, P.O. Sardah- 6271 District. Rajshahi,
Bangladesh.
Number of Employee : 250+
Contact Number : 0722356091 ,01711821173, 01716113809
Website : www.thanaparaswallows.org
E-mail : thanaswallows@gmail.com
Table 5: Organizational Profile
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
2.3 MISSION
Thanapara Swallows Development Society (TSDS) mission is to empower the poor and
underprivileged population by eradicating illiteracy, creating health awareness and self-
employment, raising awareness among the landless for the rights of land and empowering
women by creating economic and social awareness.
2.4 VISION
Thanapara Swallows Development Society (TSDS) vision is to establish a democratic society by
developing the socio-economic condition of the poor.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
2.5 ORGANIZATIONAL STRUCTURE
Figure 1: Organizational Structure
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
2.6 ORGANOGRAM OF HANDICRAFTS SECTION
Figure 2: Organogram of handicrafts section
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
2.7 TSDS HANDICRAFTS PROGRAM
The handicraft program is an ethical business programs deeper connection to the rural root. Born
out to the humble resolve to empower to the marginalized rural women and enable to realize
their full potential handicraft program is one of the biggest programs at TSDS since 1973. It has
been working towards to the TSDS mission of empowering women through economic
development and human capacity building with specific focus on the empowerment of women.
The purpose was to provide
a platform of rural women
where they could have a
place to produce products
and get a fair market price.
Starting a journey with
providing employment for
a limited number of rural
women Handicrafts
program rapidly extended
its support by working
many other artisan and
crafts. The Handicrafts Program is divided into five sections: Weaving, Sewing, Embroidery,
Block Batik and Coconut shell button making. In each of these sections, the villagers to make
products either by special order or for general sale use local materials. Items produced range
from handloom fabrics, to bed covers, wall hangings, women and children clothing to various
types of bags. These products are sold largely in Japan, UK, Denmark, Korea, Taiwan, Australia
and Sweden. The organization is a member of the World Fair Trade Organization (WFTO),
ECOTA Fair Trade Forum, and Bangla Crafts.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
2.8 PRODUCTS OF TSDS HANDICRAFTS
Picture: Ladies Shirts
Picture: Ladies Blouse
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
2.8 PRODUCTS OF TSDS HANDICRAFTS
Picture: Ladies Long Dress
Picture: Ladies Pants and Trouser
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
2.8 PRODUCTS OF TSDS HANDICRAFTS
Picture: Ladies Shorts
Picture: Men's Shirts
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
2.9 PRESENT BUYERS LIST OF TSDS HANDICRAFTS
No Name of Buyer Country
1 The Fair Trade Company Japan
2 People Tree Ltd. UK
3 Decent Bangla Sweden
4 V&V Denmark
5 TWINE Taiwan
6 Ministitch UK
7 Fair Trade South Korea
8 Bhalo Australia
9 Masleen USA
10 700 Rivers USA
11 Sustainable Yours Sweden
Table 6: Buyers List
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
2.10 SWOT ANALYSIS OF TSDS HANDICRAFTS PRODUCT
SWOT matrix or analysis is a powerful technique for understanding organizations Strength &
Weakness and looking for the Opportunities & Threats it may face. Used in a business context it
helps organization carve a sustainable niche in a market. This analysis is mainly based on an
imaginary situation.
Figure 3: SWOT analysis of TSDS Handicrafts Product
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
CHAPTER THREE
JOB EXPERIENCE OF TSDS
3.1 DESCRIPTION OF THE JOB
Getting an internship opportunity in an organization like Thanapara Swallows Development
Society (TSDS) was a great advantage for me. I had the opportunity in the Handicrafts section
under the supervision of Mr. Mynul Haque Santo, Handicrafts section manager.
TSDS is a medium-sized organization which produces wearing clothes in its factory. The main
task of the marketing department is to deliver those products to real buyer, find out a new market
for the existing product, informal research through fashion trend. Though there was a separate
finance and accounts department in the organization, the marketing department is the main
responsible unit to keep sales.
As an intern, I was not given so many tasks with huge responsibility. I have to check the
finished goods when they were storing that.
Sometimes I had to visit the factory. I went to collect the necessary knowledge about the
production process. I was involved in several activities in this organization which was very much
exciting and very good learning experiences. The work experience gave me a good idea of the
overall manufacturing process of their products.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
3.2 RESPONSIBILITIES OF THE JOB
 Monitor the process of collecting orders from buyer.
 Observe the process of making "THANE" cloth in the factory.
 Observe the process of designing cloths.
 Observe the linkage of one section with another section in each steps of making final
cloths.
 See the product display strategy.
 Visit the market where raw martials are purchased.
 Talk to worker in need of research.
 Talk to buyer or buyer representatives who visit the factory.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
3.3 WORKING EXPERIENCE
As an MBA student, I had to perform an internship in a business organization. I did my
internship in TSDS. That was my first experience of working in a professional business
environment. I was very much nervous before joining that organization.
But surprisingly I found out that none of the tasks is that much hard. Everything was in proper
order. The most important thing is to adjust to the professional work environment.
While working in that organization the most important thing I found that interpersonal
communication is the most important to work in an office environment. We need to
communicate with different types of people from different social and cultural background. It is
not easy to blend in a corporate environment so quickly. Positive attitude towards the job and
responsibilities is also important.
In an office environment where each and every activity is connected with each other, one’s
performance affects the whole organization. In our personal, we don’t need to care about others
but in an office the environment we consider everyone’s situation before making a decision.
Hard-working is the key to any success. I had to work hard in my academic career. But working
in a professional environment is even harder. Suddenly starting an 8-hour day job is not easy. I
needed to develop a strong mental attitude for the successful performance in my internship.
Endurance is also important. Working in a corporate environment can be exhaustive. We have to
work with our superiors and subordinates. Not all times our performance is appreciated an
sometimes it controls the subordinates. But everybody must take a patient approach to handle
those kinds of situation.
Working three months as an intern in an organization was a very important experience for me. I
believe it would help me to prepare to take the challenge of the real world.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
3.4 EVALUATION
It was a great experience of working for the first time and this report has been prepared on the
basis of experience gathered during the period of working. The organization did not fix any
responsibilities on me. Mainly I have done production related works beside that I have done
different types of tasks in different desks which is related in the value chain.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
CHAPTER FOUR
VALUE CHAIN ANALYSIS OF
HANDICRAFTS SECTION AT TSDS
4.1 What IS VALUE CHAIN?
Value chain analysis (VCA) is a process where a firm identifies its primary and support activities
that add value to its final product and then analyze these activities to reduce costs or increase
differentiation. Value chain represents the internal activities a firm engages in when transforming
inputs into outputs. Michael Porter identified a set of interrelated generic activities common to a
wide range of firms. The resulting model is known as the value chain and is depicted below:
Figure 4: Value chain Model
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
4.2 VALUE CHAIN ANALYSIS OF HANDICRAFTS SECTION AT TSDS
Porter's value chain model is highly popular in the business world. However, TSDS must not
take it as a rigid, standalone framework by assigning the equal importance to all activities. The
effective Value Chain Analysis requires TSDS to realize that all activities or functions do not
require the same scrutiny level. Hence, the first step of adapting the Porter Value Chain
framework is to identify the importance of activities according to their role in the product
delivery process. Here is the list of primary value chain activities as proposed by Porter:
PRIMARY ACTIVITIS
The primary value chain activities of TSDS are directly involved in producing and selling the
product to targeted customers. Analysis of primary value chain activities can improve the
performance of TSDS as explained below.
4.2.1 Inbound logistics
It is important to develop strong relationships with suppliers as their support is necessary to
receive, store and distribute the product. Without analyzing inbound logistics, TSDS can face
various challenges in product development phases. Analysis of inbound logistics requires a
company to focus on every aspect of transformation from raw material to finished product.
To get an idea about Thanapara Swallows' handicrafts product inbound logistics activities, I
talked to Mr. Mainul Islam Sentu, manager of the Handicraft Section. He gives some information
about the activities of this step. I asked him some questions. The questions and answers are given
below.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
Question 1: Do you procure the best quality raw materials in the market?
Answer: In response to this question, Mr. Sentu said: 'Yes we buy the best quality raw material
in the market. In this case we have no specified supplier. We try to verify the market and buy the
best raw material. However, raw material prices are one of the major regulators here.’
Raw materials quality which is procured
Figure 5: Raw materials quality which is procured
Interpretation: From the interview, it is found that Thanapara Swallows tries to buy the best
raw materials in the market. The most important raw material for this organization's product is
the yarn. Yarn is purchased from Dogachi Bazar in Pabna. In that area, there are wholesale
markets of yarn. At the end of the scrutiny of the quality of the yarn, TSDS has decided to buy
the best yarn at the lowest price. Other raw materials like buttons, polyethylene, and cloth color
are also purchased from those markets as required.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
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Question 2: Do you have any strategies to reduce the damage of raw
materials?
Answer: In response to this question, Mr. Sentu said: ‘Here are some strategies to reduce the
damage of purchased yarn. One of them is to be properly covered during transport. Besides, the
yarn is washed in clear water before being sent to different units and dried in the sunshine. After
soaking in water, the hardness of the yarn is reduced and then drying in the sun. This is very
helpful in preventing damage.’
Raw materials damage reduce strategy
Figure 6: Raw materials damage reduce strategy
Interpretation: From the interview, it is found that basically the main raw material of this
organization is yarn. They first wash the yarn in clean water. After that, the yarn is dried in the
sun. After that, it is sent to make yarn of different colors. Water is also used in this step. Again
the yarn is dried in the sun. This is how useful raw materials are made. The hardness of the yarn
decreases with the addition of water, which increases the durability of the yarn. On the other
hand, it helps to reduce damage.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
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4.2.2 Operations
The importance of analyzing operational activities rises when raw material arrives, and TSDS is
ready to process the raw material into the end product and launch it in the market. Some
examples of operational activities are machining, packing, assembling and testing. Equipment
repair and maintenance also falls into this category.
It includes both- manufacturing and service operations. Analysis of operational activities is
important for improving productivity, maximizing the efficiency and ensuring the competitive
success of TSDS. The increased productivity can help TSDS to achieve consistent economic
growth, increase profitability and set a powerful basis for competitive advantage.
The Handloom fabrics production process is done in two steps. First, it is made whole cloth
which is also called "Thane Cloth". After that, the dress is made in accordance with the demands
of the buyers.
Figure 7: Manufacturing process of Handicrafts cloths
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
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To get an idea about the manufacturing process, I talked to the managers of several units and a
few general staff. They give some information about the activities of this step. As shown below:
 Thane Cloth: This step is first dyed in yarn. After that, the yarn is kept in sunlight to
dry. The dry yarn is now filled with bobbin with a hand charka machine to make clothes.
After that, the Handloom fabrics of various colors are made of yarn from the bobbin. This
Thane cloth is used to weave by the traditional TAT machine in our village. Then the
cloth is sent to the quality controller. After his observation, the cloth is tagged.
At the end of this step, it is either sent to the design section or taken to the warehouse.
The production manager monitors this step very efficiently.
 Final products: This step first involves designing the clothes according to the needs of
the buyers. The cutting master does these designs. After that, the cloth is sent for sewing.
When sewing is completed, then the clothes are sent back to the quality controller's room.
At the end of his checking there, he sent the clothes for labeling. Then the clothes are sent
for iron. After the quality controller inspection again, the clothes are sent for packaging.
After that, the final cloths are stored in their ware house.
 Other activities: Many times, after the iron of the cloth, the clothes are sent back to the
factory for various hand designs. This task is a time-consuming task. Female workers do
this with great care. It increases the value of the product a lot. For logical reasons, the
cost of producing such commodities is also increased by a few times. In addition, the
workers here design bed sheets, pillow covers and small bags in various designs when the
demand for products is low.
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University Of Rajshahi
Question 3: Is your production system flexible?
In order to answer this question, I spoke to 20 employees who are directly involved with the
production department. Their opinion is given in the form of a table.
Table 7: Employee feedback about flexible production system
Option Frequency Percentage
Flexible 12 60%
Not Flexible 4 20%
Neutral 4 20%
Total 20 100%
Source: Worker
Figure 8: Flexible production system
Interpretation: From the survey, it is found that there is flexibility in the production system.
Because about 60 percent of workers say they have enjoyed flexibility. Twenty percent said no
and the remaining 20 percent made no comment. However, flexibility in production means the
ability to cope with product diversification. It is related to the fashion trade. It is important to
have flexibility in production to increase the value of the product.
0
60%20%
20%
Flexible
Not Flexible
Neutral
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
Question 4: Do you have a Wide product range?
Answer: In response to this question, Mrs. Sofia Khanam, Production Manager TSDS said,
"Yes, we have a wide product range. Because we have enough variety in size, color, taste or
functionality to appeal to a wide range of potential customers.”
Wide Product range
Figure 9: Product range
Interpretation: From the discussion, it is found that, their product range is quite wide. Because
they can produce new product by different designs, sizes, and colors with core products. This
plays a very helpful role in holding the market. It also helps create new customers. On the other
hand, the wide range of the products also helps to reduce the cost and increase the value.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
Question 5: Do you try to regularly improve the appearance of the products?
Answer: In response to this question, Mrs. Sofia Khanam, Production Manager TSDS said, "Yes,
we always try to improve the appearance of our product because if the product is not good to
see, buyers are not interested to buy.”
Regularly improve the appearance of the products
Figure 10: Regularly improve the appearance of the products
Interpretation: From the discussion, it is found that, TSDS constantly strives to improve the
appearance of products. The appearance of the product is part of the value increase. Therefore,
consumers always think of the design is updated in their clothing. The dress is designed for the
basis of the nation culture or seasonally. However, the top priority is the current fashion trade.
TSDS tries to make traditional clothing in line with the present.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
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University Of Rajshahi
Question 6: Do you try to the prevention of product pre-mature failure?
In order to answer this question, I spoke to 20 employees who are directly involved with the
production department. Their opinion is given in the form of a table.
Table 8: Employee feedback about the prevention of product pre-mature failure
Option Frequency Percentage
Yes 18 90%
No 2 10%
Total 20 100%
Source: Worker
Figure 11: Employee feedback about the prevention of product pre-mature failure
Interpretation: From the discussion, it is found that, almost all workers working at TSDS try to
prevent pre-failure. This reduces the wastage rate. Production costs are also decreased. It is easy
to reduce the price of the product by simply adding value. Otherwise, the rate of wastage
increases. Due to the price of the product increases & it creates negative ideas in the mind of the
buyer.
0
90%
10%
0%
Yes
NO
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
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University Of Rajshahi
Question 7: Do you regularly use updated technology to improve product
performance?
Answer: In response to this question, Mrs. Sofia Khanam said, "No, we don't use any of the
updated technology here. Our workers are used to the transitional system for production.”
Use updated technology
Figure 12: Use updated technology
Interpretation: From the discussion, it is found, there is no updated technology used to improve
product performance. Because everyone here is locally skilled but not accustomed to working
with modern technology. They are traditionally accustomed to using hand-operated machinery.
As a result, the company is unable to attract young consumers with their products. This is putting
them in business risk. On the other hand, it is difficult to find new markets.
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4.3.3 Outbound Logistics
Outbound logistics include the activities that deliver the product to the customer by passing
through different intermediaries. Some outbound logistics activities are material handling,
warehousing, scheduling, and order processing, transporting and delivering to the destination.
TSDS can analyze and optimize outbound logistics to explore competitive advantage sources and
achieve its business growth objectives.
Because, when outbound activities are timely managed with optimal costs and product delivery
processes put a minimum negative effect on the quality, it maximizes customer satisfaction and
increases growth opportunities for the firm. TSDS should pay specific importance to its
outbound value chain activities when its offered products are perishable and require quick
delivery to the end customer.
Figure 13: Outbound Logistics
To get an idea about Thanapara Swallows' outbound logistics activities, I talked to Mr. Arafat
Rahman, In-charge warehouse. He gives some information about the activities of this step. . I
asked him some questions. The questions and answers are given below.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
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Question 8: Do you deliver products on time?
In response to this question, Mr. Arafat Rahman, In-charge warehouse said, ‘Yes, we try our best
to deliver our products at the right time, because if product delivery is delayed, the buyer will
make a false impression about us.’
Deliver products on time
Figure 14: Deliver products on time
Interpretation: From the discussion, it is found that, Thanapara Swallows make every effort to
deliver their products at the right time. This creates a kind of confidence in the consumers about
the brand. Buyers become loyal to these brands. The same buyer repeatedly wants to buy
products of the same brand. Family or friends recommend buying these brand products. Due to
which it is easy to collide with other competing brands. This creates huge potential for
commercial gain.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
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University Of Rajshahi
Question 9: Have your delivery capabilities is Flexible?
In response to this question, Mr. Arafat Rahman, In-charge warehouse said, ‘Yes our delivery
capability is Flexible because we have enough staff for product delivery. They are capable of
delivering any quantity of product delivered.’
Flexible delivery capabilities
Figure 15: Flexible delivery capabilities
Interpretation: From the discussion, it is found that, Thanapara Swallows' delivery capability is
Flexible. Because they have about 13 brand promoters who are only export related. So they have
no problem with delivering any quantity of product. TSDS officials believe that it is possible for
them to send any quantity of goods to any country in the world. This brand promoter helps to get
the order again. Basically, they maintain contact with foreign buyers on various issues. This
helps to get order.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
4.3.4 Marketing and sales:
At this stage, TSDS will highlight the benefits and differentiation points of offered products to
persuade the customers that its offering is better than competitors. Only producing a high quality
product at affordable costs and distinctive features cannot create value until TSDS invests on the
marketing and sales activities. The sales agents and marketers play an important role here.
Some examples of TSDS's marketing and sales activities are- sales force, advertising,
promotional activities, pricing, channel selection, quoting and building relations with channel
members. The company can use the marketing funnel approach to structure its marketing and
sales activities. The marketing strategies can either be push or pull in nature, depending on the
TSDS’s business objectives, brand image, competitive dynamics and current standing in the
market.
Effective and wisely integrated marketing activities can develop the brand equity of TSDS and
help it stand out from the competition. However, TSDS must avoid making false commitments
about product features that cannot be fulfilled by the production department. It indicates the need
to ensure coordination between different value chain activities.
To get an idea about Thanapara Swallows' marketing and sales activities, I talked to Mr. Mainul
Islam Sentu, manager of the Handicraft Section. He gives some information about the activities
of this step. I asked him some questions. The questions and answers are given below.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
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University Of Rajshahi
Question 10: Do you try to improve relationships with suppliers and
customers?
In response to this question, Mr. Mainul Islam Sentu, manager of the Handicraft Section said,
‘Yes, we always strive to develop relationships with buyers and suppliers because as a
production organization we have to do business with people of these two levels. We bought the
raw material from one of them. We sell the final product to others. Having a good relationship
with both parties later in our business practice.’
Relationships with suppliers and customers
Figure 16: Relationships with suppliers and customers
Interpretation: From the discussion, it is found that, TSDS always strives to develop
relationships with buyers and suppliers because they think of it as part of their business. Because
of this enhanced relationship between the two parties, TSDS can easily buy good raw materials
on one side. On the other hand, when sales can increase then Increases customer loyalty. This is
one of the main ways to establish a brand.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
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University Of Rajshahi
Question 11: Do you have any strategy for offering high-quality information
to your products?
In response to this question, Mr. Mainul Islam Sentu, manager of the Handicraft Section said,
‘Yes, we contact our regular customers for new information. When we create a new design dress,
we send the information about it to our target customer’
Offering high-quality information to customers
Figure 17: Offering high-quality information to customers
Interpretation: From the discussion, it is found that, TSDS shares any new information about its
products with regular buyers. That's why they communicate with customers' personal e-mails.
From there, they receive orders for new products. This increases their customer satisfaction. As a
result, the sale of the product increases. Financially, a long-time relationship is established with
the organization and customers. That will benefit the organization in a commercial way.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
Question 12: Do you have any strategies to create brand awareness,
reputation and image development?
In response to this question, Mr. Mainul Islam Sentu said, ‘No, we do not use formal techniques.
We do not advertise commercially. However, we participate in fairs organized by Bangladesh
Embassy in different countries.’
Strategies to create brand awareness
Figure 18: Strategies to create brand awareness
Interpretation: From the discussion, it is found that, although the TSDS does not formally use
any strategy. However, they participate in trade fairs organized by the Bangladesh Embassy in
different countries. Buyers from different countries come to these fairs. Interested buyers want to
know about the organization and its activities. TSDS collects e-mail and mobile numbers of the
interested buyers. Later, when a new feature or product is updated, they communicated to the
buyer.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
Question 13: how is the relationship between product, research, and
marketing departments?
In order to answer this question, I spoke to 15 employees who are directly involved with the
marketing and sales department. Their opinion is given in the form of a table.
Table 9: Employee feedback about the relationship between various departments
Option Frequency Percentage
Very Good 10 66%
Good 3 20%
Bad 2 14%
Total 15 100%
Source: Worker
Figure 19: Employee feedback about the relationship between various departments
Interpretation: From the survey, it is found that, the relationship between products, research,
and marketing departments is very good. As a result, the organization's linkage rate is even
better. It also helps reduce production costs. Moreover, the standard value of the product
increases. On the other hand, the Procurement Department can benefit from properly
coordinating this relationship. This relationship can assist the Procurement Department in its
entirety in any procure.
Very Good
66%
Good
20%
Bad
14%
0%
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
4.3.5 After Sales service:
The pre-sale and post-sale services offered by the TSDS will play an important role in
developing customer loyalty. The modern customers consider post-sale services as important as
marketing and promotional activities. The power of negative e-WOM due to poor support service
cannot be undermined in the current technologically advanced era. The company must analyze
its support activities to avoid damaging brand reputation, and instead use it as a tool to spread
positive word of mouth due to quick, timely and efficient support services.
To get an idea about after sales service activities, I talked to Mr. Raihan Ali, Executive Director
TSDS. He gives some information about the activities of this step. I asked him some questions.
The questions and answers are given below.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
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University Of Rajshahi
Question 14: Do you use high-quality technical assistance for Services?
In response to this question, Mr. Raihan ali said, ‘No, we do not use the latest technology for
after-sales service. In fact, the products we sell do not require the after-sales service. Even then
many times I change the product on the basis of the buyer's complaint.’
Use technical assistance for Services
Figure 20: Use technical assistance for Services
Interpretation: From the discussion, it is found that, it is a medium sized organization. Since the
main task is to make wearable clothes. Therefore, each cloth is properly verified before
packaging. This selection is confirmed by the Quality Controller, who is responsible by the
handicraft manager. Therefore, the customers of this organization do not need after sales.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
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University Of Rajshahi
SUPPORT ACTIVITIES
The support activities play an important role in coordinating and facilitating the primary value
chain activities. TSDS can also benefit from the analysis of its support activities as explained
below.
4.3.6 Procurement:
The procurement in value chain denotes the processes involved in purchasing the inputs that may
range from equipment, machinery, raw material, supplies, raw material and other items necessary
for producing the finished product. Due to its linkage with multiple value chain activities, TSDS
should carefully consider its procurement activities to optimize the inbound, operational and
outbound value chain.
To get an idea about procurment activities, I talked to Mr. Raihan Ali, Executive Director TSDS.
He gives some information about the activities of this step. I asked him some questions. The
questions and answers are given below.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
Question 15: Do you have any Reliable transportation to ensure procure raw
materials?
In response to this question, Mr. Raihan ali said, ‘No, we do not have any reliable transportation
system to collect raw materials.’
Reliable transportation system
Figure 21: Reliable transportation system
Interpretation: From the discussion, it is found that, Thanapara Swallows has not own
transportation system. They are assisted by a third party for delivery at the end of any raw
material purchase. This creates the possibility of wasting raw materials. Again it is too late to
reach the raw materials for poor management. At that time, the production system slowed down.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
Question 16: Do you procure high-quality Machinery for your organization?
In response to this question, Mr. Raihan ali said, ‘Yes, we prioritize quality when procuring our
machinery because the desired production is not possible with Less Quality Machines.’
Machineries Quality
Figure 22: Machineries Quality
Interpretation: From the discussion, it is found that, Thanapara Swallows give priority to
quality when buying machinery because low-quality machines produce less. Again the value of
the product cannot be retained. As a result, the rate of waste increases. This creates a negative
impact on the value of the overall product and the business.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
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4.3.7 Human Resource Management:
TSDS can analyze human resource management by evaluating different HR aspects, including-
recruiting, selecting, training, rewarding, performance management and other personnel
management activities. Effective HR management can allow TSDS to reduce competitive
pressure based on motivation, commitment, and skills of its workforce. The company can also
achieve its cost minimization objectives by analyzing hiring and training costs with their relative
return. The heavy dependence of TSDS on employees' talent will increase the importance of this
value chain support activity.
To get an idea about human resource management activities, I talked to Mrs. Mahmuda Ginee ,
Assistant Director TSDS. He gives some information about the activities of this step. I asked him
some questions. The questions and answers are given below.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
Question 17: Do you have any rewards policy for worker performance?
In response to this question, Mrs. Mahmuda Ginee said, ‘We have no formal rewards policy for
our workers.
Reward policy
Figure 23: Reward policy
Interpretation: From the discussion, it is found that, there is no formal rewards policy for the
Thanapara Swallows staff. Since it is a small organization, there are some disadvantages to
adopting such a policy. So, when satisfied with the performance of the employee, the owner
party celebrates with immediate congratulations.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
Question 18: Do you have any personnel training program for an employee?
In response to this question, Mrs. Mahmuda Ginee said, ‘We have no formal training program
for the workers.
Training program
Figure 24: Training program
Interpretation: From the discussion, it is found that, there is no formal training system for the
worker of this organization. The new workers learned the work by seeing other worker. Since the
worker here are all women and everyone is local. Therefore, the new employee does not have to
face any difficulty to learn the job. This work of needle yarn is learned by families. Here they
just have to learn how to operate the machine. However, the worker feels that organizing training
at different times will increase their skills.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
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4.2.8 Technology development
In a modern, technological advanced era, almost all value chain activities depend on
technological support. The technological integration in production, distribution, marketing, and
human resource activities requires TSDS to realize the importance of technology development. It
can be divided into product and process technological development activities. Some examples
are- automation software, technology-supported customer service, and product design research
and data analytics. The research and development department of TSDS is classified in this
category.
To get an idea about technological development activities, I talked to M rs. Mahmuda Ginee ,
Assistant Director TSDS. He gives some information about the activities of this step. I asked him
some questions. The questions and answers are given below.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
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University Of Rajshahi
Question 19: Do you use updated technology regularly?
In response to this question, Mrs. Mahmuda Ginee said, ‘The workers here are not as skilled as
industrial workers. They are mainly local skilled workers. Moreover, hand-operated machines
are used for production purposes. So in that sense, we do not use updated technology or
machinery.’
Using updated technology
Figure 25: Using updated technology
Interpretation: From the discussion, it is found that, there is no use of modern technology in
that sense because of the production work has done on hand operate machines. Moreover, there
is no use of modern technology for product delivery. In view of this, the use of modern
technology in this organization may not be necessary.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
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Question 20: Do you have any research and development section?
In response to this question, Mrs. Mahmuda Ginee said, ‘No, we don't have such a department.
However, the marketing department conducts research on fashion trends, designs, consumer
attitudes, etc. to a small extent. The handicrafts section manager is leading the work.’
Research and development
Figure 26: Research and development
Interpretation: From the discussion, it is found that, although Thanapara Swallows does not
have a formal research department, the marketing department does research on fashion trends,
designs, and consumer attitudes. There is no substitute for research to increase sales or
understand new market demand. Research can be done to understand the needs of the buyers and
make products accordingly. In order to maintain a good reputation in the market for a long time,
the organization continues its research activities.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
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4.2.9 Infrastructure
The firm infrastructure denotes a range of activities, such as- quality management, legal matters
handling, accounting, financing, planning, and strategic management. Effective infrastructure
management can allow TSDS to optimize the value of the whole value chain. TSDS can control
the infrastructure activities (or commonly called overhead costs) to strengthen the competitive
positioning in the market.
To get an idea about infrastructure, I talked to Mr. Raihan Ali, Executive Director TSDS. He
gives some information about the infrastructure of this organization. I asked him some questions.
The questions and answers are given below.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
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Question 21: Do you have any extensive database for marketing??
In response to this question, Mr. Raihan ali said, ‘No, there is no extensive database system that
will support our marketing process.’
Extensive database
Figure 27: Extensive database
Interpretation: From the discussion, it is found that, there is no extensive database system that
will assist in the sales operation. However, the organization has done this work to a lesser extent.
They collect information on target buyers while attending different fairs. The appointed
representative made a list of them. Later, TSDS contacted that's buyers to inform them about the
new product.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
Question 22: Do you have any advanced information system to get deeper
customer insights?
In response to this question, Mr. Raihan ali said, ‘Yes, we arrange to provide superior
information about products to attract customers. In this case, the attempt is made to convey the
correct information to the buyer as per his demand.’
Advanced Information System
Figure 28: Advanced information system
Interpretation: From the discussion, it is found that, they basically share the story behind
making products with consumers. In order to design a product of female workers, the
organization provides information based on the story of the difficulty of completing the task.
Thanapara Swallows provides these stories in picture format to attract buyers.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
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4.4 Cost drivers of TSDS Handicrafts Product
After reviewing all the interviews, it was found that TSDS can control the following drivers to
add value, set differentiation basis and enhance efficiency.
Figure 29: Cost drivers
However, it is important to note that costs can be reduced only to some extent. TSDS Value
Chain Analysis must also consider the customers’ perceived value that may justify the higher
price charged by the company compared to competitors.
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4.5 Data Analysis based on buyer interview
The organization does not sell products directly to the consumer. They sell wholesale products to
popular brands in different countries. These buyers representative come directly to factory visits
to observe the progress of the work. I talked to representatives about various issues.
It can be seen that five interviewees ranked 4 buying factors that were mentioned to them, as the
most important buying factors when purchasing TSDS product. Interviewees ranked the buying
factors from 1 to 5, 1 being least important to 5 being most important.
Buying Factor 1 2 3 4 5 Total score
Product quality
consistency
1 4 23
Brand preference 1 3 1 19
Flexible Payment
terms
2 2 1 9
Delivery
capability
3 1 1 18
Table 9: Data Analysis based on buyer interview
Each of the ranks holds individual value depending on the importance of a buying factor. Each
rank is valued in the following points:
5 points = Most important buying factor
4 points = Important buying factor
3 points = Average
2 points = Not so important buying factor
1 point = Least important buying factor
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Product quality consistency
From the table, it is clear that “Product quality consistency” gets the score of 23. Out of five,
four interviewees ranked it 5 being the most important buying factor and one interviewee ranked
it 3. So, the total score comes, (4x5) + (1x3) = 23.
Quality Consistency of TSDS Product
Figure 30: Quality Consistency of product
Interpretation: From the interviews, it is found that TSDS product quality consistency is very
high. It is very helpful to create a strong brand image for the buyer mind. Therefore, TSDS easily
enjoy competitive advantage then their competitor.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
Brand Preference
From the table, it is clear that “Brand preference” gets the score of 19. Out of five, three
interviewees ranked it 4 being the important buying factor and one interviewee ranked it 5 and
another one interviewee ranked is 2. So, the total score comes, (3x4) + (1x5) + (1x2) = 19
Brand Preference
Figure 31: Brand Preference
Interpretation: From the interviews, it is found that TSDS brand preference is high. Consumers
are repeatedly to buy the products of these brands for the quality of the product. This factor plays
a very important role in gaining a better position than its competitors in the market.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
Flexible Payment Terms
From the table, it is clear that “Flexible Payment Terms” gets the score of 9. Out of five, two
interviewees ranked it 2 being the not so important buying factor and also two interviewee
ranked it 1 and one interviewee ranked it 3. So, the total score comes, (2x2) + (2x1) + (1x3) = 9
Conditional Payment Terms
Figure 32: Flexible payment terms
Interpretation: From the interviews, the buyer has no problem with the payment method of
TSDS. Customers simply prefer to order here because of the flexibility to pay the price. This
factor greatly helps in developing business relationships with buyers.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
Delivery capability
From the table, it is clear that “Delivery capability” gets the score of 18. Out of five, Three
interviewees ranked it 3 being average impact on buying factor & also one interviewee ranked it
4 and another one interviewee ranked it 5. So, the total score comes, (3x3) + (4x1) + (5x1) = 18
Delivery Capability
Figure 33: Delivery capability
Interpretation: From the interviews, it is found that TSDS delivery capability is high. It is also
very helpful to create a strong relationship with the buyer. When the market demand is high,
buyers place more orders here for this factor. This will benefit the company in a commercial
way.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
4.6 LINKAGE OF TSDS VALUE CHAIN MODEL
Note: Arrow indicate support flow
Figure 34: Output of value chain analysis
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
CHAPTER FIVE
FINDINGS, RECOMMENDATIONS AND CONCLUSION
5.1 FINDINGS
The role of value chains is essential in any manufacturing organization. Because the value
associated with the product is so deep that it can create a competitive advantage than other
competitors and helps the buyer to make positive ideas about the product. By properly analyzing
every step of the value chain, it is possible to produce products that are suitable for the customer
by reducing production costs and adding appropriate values. This report deals with the value
chain analysis of Thanapara Swallows Development Society (TSDS) handicrafts section.
Inbound Logistics:
 Thanapara Swallows purchase the best quality raw materials in the market.
 They take a number of effective strategies to reduce the damage of purchased raw
materials.
Manufacturing:
 The production process of Thanapara Swallows is quite flexible.
 They have a wide product range.
 TSDS always try to improve the appearance of their product.
 Their workers try to prevent pre-failure.
 But they do not use any updated technology to improve the performance of their
products.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
Outbound Logistics:
 They do their best to deliver the products at the right time.
 Thanapara Swallows' product delivery capacity is more flexible.
Marketing and Sales:
 They always try to maintain a good relationship with the buyer and the supplier.
 They contact targeted buyers directly to provide information about new products.
 However, they do not use formal techniques to raise brand awareness.
 They have good links to action plans within the manufacturing, research and marketing
departments.
After sales Services:
 Thanapara Swallows does not use any modern techniques for its after-sales service.
Procurement:
 They have no transportation system of their own to provide fast product delivery.
 But they procure the best quality machinery for use in production.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
Human resource management:
 There is no rewards system for the performance of Thanapara Swallows workers.
 There is no training system to improve the skills of their staff.
Technology development:
 They do not use any advanced technology.
 They do not have Research and Development Department.
Firm infrastructure:
 They have no extensive database development for effective marketing.
 They have no advanced information system to get deeper customer insights.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
5.2 RECOMMENDATIONS
Based on my observations, I made recommendations that may help to improve the value of
TSDS handicrafts sections-
 TSDS can select and source premium quality raw material and develop customer loyalty
on the basis of it. It can also use Value Chain Analysis to develop brand identity.
 TSDS can also achieve competitive differentiation by speeding up the delivery of offered
products to the final customers.
 TSDS may use modern machines for production. In addition to the traditional hand-
operated machines, production rates will increase if you start using modern machines.
 Understanding the needs of the final buyer, the dress should be designed in a timely
manner. This will help to attract younger buyers.
 TSDS can start a training program to improve workers skills. It can reduce waste by
increasing the efficiency of the worker. At the same time, the reward system should be
introduced to well-performing workers.
 The web site needs to be more informative. If necessary, the story behind the product
making must be attached.
 To Arrangements for the sale of products in the domestic market. The need to increase
the sale of products by contacting well-known companies such as Aarong, Bishwo Rang,
Foring, Desi Dosh etc, the country's top local clothing brands. This will help increase
production and gain the economy of scale.
Hopefully, these recommendations will help to TSDS handicraft section product value and,
above all, increase product sales. Moreover, if these measures are taken seriously, the
organization will get more benefits than its other competing companies. This is called
competitive advantage.
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
5.3 CONCLUSION
After the liberation war, Sweden Swallows established Thanapara Swallows Development
Society (TSDS) from the thought of helping women who lost their husbands in the war in a
village called 'Thanapara' in Charghat police station in Rajshahi district. The organization
produce THANE clothes with the help of a basic TAT machine and also produces various
dresses with that cloth. At one time there was huge demand for such products, but the number of
producers was counted. But now the demand for such products has decreased, while the number
of producers has increased. Therefore, from the production of the product to deliver the
consumer, it is time to reduce the cost of all steps and provide the highest value. In order to
survive in this market of competitiveness, therefore, the product of the new design as per the
demands of the era must be delivered to the consumers. Otherwise, no production-oriented
organization will survive in this world of free-market systems.
67
Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
BIBLIOGRAPHY
 Annual Report of Thanapara Swallows Development Society (TSDS).
 Web Site: www.thanaparaswallows.org
 Competitive advantage Creating and sustaining superior performance by Michal E.
Porter.
 Strategic Brand Management (Second Edition) by Kevin Lane Keller.
 Principles of Marketing (Sixteen Edition) by Philip Kotler.
 Strategic Management Competiveness and Globalization by Michael A. Hitt.
 Strategic Management (10th
Edition) by Charles W. L. Hill & Gareth R. Jones.
 www.en.wikipedia.org/wiki/Handicraft
 www.en.wikipedia.org/wiki/Fair_trade
 www.peopletree.co.uk
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Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
Appendix
Questionnaire
Dear Sir,
I am a student of Institute of Business Administration (IBA), Rajshahi University. I am currently
assigned to an internship at TSDS's handicraft Section. My internship topic is Value Chain
Analysis of handicrafts section at TSDS. The responses will be used for academic purposes and
its confidentiality will be strictly maintained.
Questionnaire for responsible person who are related in handicrafts section at TSDS
1. Do you procure the best quality raw materials in the market?
2. Do you have any strategies to reduce the damage of raw materials?
3. Is your production system flexible?
4. Do you have Wide product range?
5. Do you try to regularly improve the appearance of the products?
6. Do you try to the prevention of product pre-mature failure?
7. Do you use any strategies for lower defect rate?
8. Do you regularly use updated technology to improve product performance?
9. Do you use any strategies to reduce product damage?
10.Do you deliver products on time?
11.Have your delivery capabilities is Flexible?
12.Do you try to improve relationships with suppliers and customers?
13.Do you have any strategy for offering high-quality information to your products?
69
Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS)
Institute Of Business Administration (IBA)
University Of Rajshahi
14.Do you have any strategies to create brand awareness, reputation and image
development?
15. How is the relationship between product, research, and marketing departments?
16.Do you use high-quality technical assistance for Services?
17.Do you have any advanced information system to get deeper customer insights?
18.Do you have any rewards policy for worker performance?
19.Do you have any personal training program for an employee?
20.Do you use updated technology regularly?
21.Do you have any Reliable transportation to ensure a quick delivery?
22.Do you procure high-quality Machinery for your organization?

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Internship report on value chain analysis of handicrafts product at thanapara swallows development society (TSDS)

  • 1. AN INTERNSHIP REPORT ON VALUE CHAIN ANALYSIS OF HANDICRAFTS PRODUCT AT THANAPARA SWALLOWS DEVELOPMENT SOCIETY (TSDS) Submitted By Supervised By Md. Musfiquzzaman ID NO- 1710085120 MBA 16th Batch (Evening) Major: Marketing Institute of Business Administration (IBA) University of Rajshahi Dr. Md. Shariful Islam Professor Institute of Business Administration (IBA) University of Rajshahi Institute Of Business Administration (IBA) University Of Rajshahi
  • 2. LETTER OF TRANSMITTAL To Dr. A. K.Shamsuddhoa Director Institute of Business and Administration (IBA) University of Rajshahi. Subject: Submission of the Internship Report Dear Sir: I would like to submit my internship report titled “Value chain analysis of Handicrafts product at Thanapara Swallows Development Society (TSDS)”, which has been prepared as a requirement for the completion of the MBA Program. While working on the report, I have tried to follow each and every guideline that you have advised. It has been a very enlightening experience to work in this new venture and I have thoroughly enjoyed my internship period at TSDS. The authority of TSDS has also extended their cooperation whenever required. I, therefore, would like to request you to accept my Internship report and oblige thereby. Thanking You Sincerely Yours, MD.MUSFIQUZZAMAN Roll No- 1710085120 MBA 16th Batch (Evening) IBA, University of Rajshahi
  • 3. ACKNOWLEDGEMENT I would like to thank the internship Supervisor, Dr. Md. Shariful Islam, Professor, IBA, RU who has helped me in every step of my internship. I am very much grateful to Mr. Md Raihan Ali giving me the opportunity to complete my internship at TSDS. I am sure that their dynamic managerial activities will give inspiration to anybody to build one's career properly. I also want to thank all the team members of the Handicrafts section at TSDS, for their support that I have been provided for preparing my report. I practically work with them, try to share their perception, feelings and on the basis of my realization, I prepared report from my own point of view. Then at last I shall be grateful to those people who read this report and who shall get benefit from this report at present and in future. MD.MUSFIQUZZAMAN Roll No- 1710085120 MBA 16th Batch (Evening) IBA, University of Rajshahi
  • 4. PREFACE Thanapara Swallows Development Society (TSDS) is an organization where mainly women work. The village women end their family activities and work in this organization in hopes of earning extra income. Keeping in view the social and economic development of rural women, Thanapara Swallows started the journey in the year 1973. About 130 families affected by our liberation war belonging to this organization. The scope of the organization has increased over time. The small organization currently has more than 200 employees. About 300 designs of clothes are being made for ladies and gents. When production rates are increasing day by day then must try to find new markets. The collision has to be done with all domestic and foreign producers. There is no substitute for increasing the value of the product so as to attract new buyers to the new market. In my report, I tried to find Michael Porter's Value Chain Analysis Model with this organization. I searched in different directions to create information. I tried to include all the things here. I segmented my report into five chapters. Fast covers the introduction about the report; second chapter covers the organizational overview of Thanapara Swallows Development Society (TSDS). Third chapter consists of job experience of TSDS. Fourth chapter is for the analysis of the value chain analysis of handicrafts sections at TSDS. Fifth chapter includes findings, Recommendation, Conclusion and Appendix.
  • 5. CONTENTS CHAPTER ONE: INTRODUCTION……………………………………………1-6 1.1 Prelude………………………………………………………………………………………...1 1.2 Objectives…………………………………………………………………………………….2 1.3 Scope of the study………………………………………………………..............................2 1.4 Methodology of the study…………………………………………………………………….3 1.5 Research Tools.............................................................................................................4 1.6 Limitations of the study………………………………………………………………………6 CHAPTER TWO: AN OVERVIEW OF TSDS………………………………..7-17 2.1 Background…………………………………………………………………………………..7 2.2 Company Profile……………………………………………………………........................8 2.3 Mission ……………………………………………………………………………………….9 2.4 Vision…………………………………………………….....................................................9 2.5 Organizational Structure…………………………………………………………………….10 2.6 Organ gram of handicrafts section……………………………………………………….…11 2.7 TSDS handicrafts program…………………………………………………………………12 2.8 Products of TSDS handicrafts………………………………………………………………13 2.9 Present buyers list of TSDS handicrafts………………………………………………….…16 2.10 SWAT Analysis of TSDS Handicrafts Section………………………………………….17 CHAPTER THREE: JOB EXPERIENCE OF TSDS…………………………18-21 3.1 Description of the job……………………………………………………………………….18 3.2 Responsibilities of the job………………………………………………………………......19 3.3 Working Experience……………………………………………………………………...…20 3.4 Evaluation………………………………………………………………………………...…21
  • 6. CHAPTER FOUR: ANALYSIS………………………………………………22-61 4.1 What is value chain…………………………………………………………………………..22 4.2 Value chain analysis of handicrafts product at TSDS………………………………...……..23 4.2.1 Inbound logistics………………………………………………………………...…23 4.2.2 Operations………………………………………………………………………….26 4.2.3 Outbound Logistics…………………………………………………………...……33 4.2.4 Marketing and sales………………………………………………………………..36 4.2.5 After Sales service…………………………………………………………………41 4.2.6 Procurement………………………………………………………………….…….43 4.2.7 Human Resource Management……………………………………………….……46 4.2.8 Technological development………………………………………………………..49 4.2.9 Infrastructure……………………………………………………………………….52 4.4 Cost drivers of TSDS handicrafts product……………………………………………...…55 4.5 Data Analysis based on buyer interview……………………………………………………..56 4.6 Output of value chain analysis……………………………………………………………....61 CHAPTER FIVE: FINDINGS, RECOMMENDATIONS AND CONCLUSION……………………………………………………………...……62 5.1 Findings………………………………………………………………………………...……62 5.2 Recommendations……………………………………………………………………………65 5.3 Conclusion……………………………………………………………………………...……66 BIBLIOGRAPHY……………………………………………………………...…67 APPENDIX……………………………………………………………………68-69
  • 7. LIST OF TABLES Title Page No. Table 1: The research concept …………………………………………………………………....4 Table 2: In depth Interview ……………………………………………………………………….4 Table 3: Focus Group interview ………………………………………………………………….5 Table 4: Secondary Data analysis sources ……………………………………………….……….5 Table 5: Organizational Profile ……………………………………………………………….…..8 Table 6: Buyers List……………………………………………………………………………...16 Table 7: Employee feedback about flexible production system…………………………………28 Table 8: Employee feedback about the prevention of product pre-mature failure ……………...31 Table 9: Employee feedback about the relationship between various departments…………..…40 Table 10: Data Analysis based on buyer interview………………………………………..….....56
  • 8. LIST OF FIGURES Title Page No. Figure 1: Organizational Structure……………………………………………………………….10 Figure 2: Organogram of handicrafts section……………………………………………………11 Figure 3: SWOT analysis of TSDS handicrafts………………………………………………….17 Figure 4: Value chain Model………………………………………………………………….....22 Figure 5: Raw materials quality which is procured……………………………………………...24 Figure 6: Raw materials damage reduce strategy………………………………………………..25 Figure 7: Manufacturing process of Handicrafts cloths………………………………………….26 Figure 8: Flexible production system……………………………………………………………28 Figure 9: Product range…………………………………………………………………………..29 Figure 10: Regularly improve the appearance of the products…………………………………..30 Figure 11: Employee feedback about the prevention of product pre-mature failure………….…31 Figure 12: Use updated technology……………………………………………………………...32 Figure 13: Outbound Logistics…………………………………………………………………..33 Figure 14: Deliver products on time……………………………………………………………..34 Figure 15: Flexible delivery capabilities…………………………………………………………35 Figure 16: Relationships with suppliers and customers………………………………………….37 Figure 17: Offering high-quality information to customers……………………………………..38 Figure 18: Strategies to create brand awareness…………………………………………………39 Figure 19: Employee feedback about the relationship between various departments…………...40 Figure 20: Use technical assistance for Services………………………………………………...42 Figure 21: Reliable transportation system……………………………………………………….44 Figure 22: Machineries Quality………………………………………………………………….45 Figure 23: Reward policy………………………………………………………………………...47 Figure 24: Training program……………………………………………………………………..48 Figure 25: Using updated technology……………………………………………………………50
  • 9. Figure 26: Research and development…………………………………………………………...51 Figure 27: Extensive database…………………………………………………………………...53 Figure 28: Advanced information system………………………………………………………..54 Figure 29: Cost drivers…………………………………………………………………………...55 Figure 30: Quality Consistency of product………………………………………………………57 Figure 31: Brand Preference……………………………………………………………………..58 Figure 32: Flexible payment terms………………………………………………………………59 Figure 33: Delivery capability…………………………………………………………………...60 Figure 34: Output of value chain analysis……………………………………………………….61
  • 17. 1 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi CHAPTER ONE INTRODUCTION 1.1 PRELUDE Handicraft is considered to be an art. The process of manufacturing can be defined as low technology fragmented and predominantly labor intensive one. This art is being practiced and developed through generation to generation. The items often represent local culture. Handicraft items are different from mass production or machine production. People working in this sector earn their livelihood by making handicrafts item. Handicraft items are different from "arts and crafts" as they meant to be used for something. Handicrafts maintain a fine line with mass production and things made in the factories. However to prepare this report, I worked in Thanapara Swallows Development Society (TSDS). It was established in 1973 in assistance with The Swallows at Laud in Sweden. It has an aim to assist the Bangladeshi women who were affected by the Liberation war in 1971. TSDS is a 100% export oriented handicraft centre based on handloom. During our internship in the TSDS, we almost worked in every Department of this centre and tried to find out the activities, planning and many other things as well. I have completed this report by examining all the department of Handicraft section, such as Commercial Department, Production Department, Supply Chain Department, Human Resource Department, MIS Department, and relevant organization like Fair Trade, Insurance Company, Shipping Company of TSDS. The main concern of this study is the Value Chain Analysis, the process to analyze the specific activities through which firms can create a competitive advantage. It is useful to represent the firm as a chain of value-creating activities. Michael Porter identified “a set of interrelated generic activities” which share similarity with a wide range of firms.
  • 18. 2 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 1.2 OBJECTIVES Broad objective: Understanding the value chain activities of Handicrafts product at Thanapara Swallows Development Society (TSDS). Specific objectives: The specific objectives are the following.  To understand the current value chain strategies of Thanapara Swallows.  To explore how inbound and outbound logistics actually work for Thanapara Swallows Handicrafts product.  To identify proper linkage in this organization. 1.3 SCOPE OF THE STUDY The study has many dimensions and covers a broad area. It focuses mainly on The Value Chain Analysis which aims to grab the buyer’s attention and create a competitive advantage. To perform this study skillfully all of the primary action and supporting activities of the process has been covered effectively. In order to gain an insight into the process of The Value Chain analysis of the TSDS which is already been mentioned in the introduction. Supply Chain Department, Human Resource Department, MIS Department and the employees' statement and their working strategy have been scrutinized and analyzed based on the relevant secondary data which could have been performed even on a broader spectrum.
  • 19. 3 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 1.4 METHODOLOGY OF THE STUDY The research is conducted for finding out how Value Chain Analysis of handicrafts product at TSDS is maintained, what things are considered and the tools used for this purpose. As Thanapara Swallows has passed its 46 years of glorious journey, it has already a structured Value Chain in action. My task is to find out the value and present it in this report in a structured way. That's why, I visit the factory; collect information from the responsible manager and workers. These Interviews have been administrated by formal and informal. Both structured and unstructured questionnaire was used. The methodology includes personal observation, interviews with the responsible person, qualitative research and observations and secondary data analysis. Primary Data Sources:  Personal observation is first and strongest source of collecting information. A three months window gives me a perfect opportunity to understand its activities.  Interviews with the responsible person: In the report, primary data has been collected through interviews with TSDS personality. Interviews have been administrated by formal and informal discussion.  Qualitative Research and Observations: A qualitative study will be conducted to understand the relevant issues following certain surveys of experts (knowledgeable persons), focus groups and in-depth interviews. Secondary Data Sources:  Web Portal of TSDS.  Various books and article which are related in “Fare Trade” business.  Newspaper article and online article.
  • 20. 4 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 1.5 Research Tools The tools will be used in the research are as follows - In depth Interview Unstructured Focus Group Discussion Unstructured Consumer Observation Structured Secondary Data Analysis Structured Table 1: The research concept In depth Interview: Designation Sample Size Topic Value chain TSDS Handicrafts 2 What is the value chain Strategy of Thanapara Swallows, how they are being implemented, What factors are considered, controlling measurement Research Team Executive 1 How the database is managed, what type of data are being stored, he procedure of collecting data, the analyzing method Manager Handicrafts 1 The procedure for measuring up marketing investments and the necessary measurement tools Factory-in-charge 1 The overall value chain project material Table 2: In depth Interview
  • 21. 5 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Focus Group interview: Designation Sample Size Topic The inbound logistics, operation, outbound logistics, sales & marketing, service 3 How the value chain is made up, what things to be considered, the maintenance procedure Table 3: Focus Group interview Secondary Data analysis sources: Topic Source Value and value chain related theory Books, Article, Web site Marketing and Marketing Related theory and practices Books, Article, Web site Organizational Background Web Site of TSDS Case Studies on Thanapara Swallows Web site, Internal Data base of TSDS Handicrafts Table 4: Secondary Data analysis sources
  • 22. 6 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 1.6 LIMITATION OF THE STUDY The main limitation is I will not communicate with any direct consumer so I will miss the consumer opinion about the product of Thanapara Swallows. For primary data analysis, I will only have to rely on the information given to me by TSDS employees. Managers don't have enough time to give the information elaborately. Another limitation is time constrain. It is also possible that both sampling and non-sampling errors might exist.
  • 23. 7 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi CHAPTER TWO AN OVERVIEW OF THANAPARA SWALLOWS DEVELOPMENT SOCIETY 2.1 BACKGROUND Thanapara Village is located in the northwestern part of Bangladesh on the riverbank of Padma (Ganges). During the liberation period in 1971, this quiet and peaceful village was transformed when on the 13th of April, the Pakistani Army suddenly invaded the village and killed over 100 unarmed men. This massacre was the largest atrocity in the Rajshahi District during the war. With the destruction of the male heads of household, the families in the village faced certain destitution and hopelessness. In 1973, the Swedish organization, The Swallows, hearing of the massacre and the resultant desperation of the survivors, began a relief program on 1st October 1973 providing food and clothing to the people of Thanapara named The Swallows Association for Social Voluntary Service, Thanapara Project. The following year, a primary school was also started for the poor children and a handicraft program for the war-affected women of the village. Currently, a full-time staff and representative members from all of the village programs manage the Society. The Handicrafts Program is a self-sustaining operation with 138 women and three men working regularly. Since gaining full independence from the Swallows Sweden organization on 1st July 1999, the Thanapara Swallows Development Society has been seeking ways to make all programs sustainable without having to rely.
  • 24. 8 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 2.2 ORGANIZATIONAL PROFILE Name of the Organization : Thanapara Swallows Development Society (TSDS) Founded : 1973 Executive Director : Md. Raihan Ali Assistant Director : Mahmuda Begum Guinea Manager (Handicrafts) : Mynul Haque Santo Legal Status : NGO (Non Government Organization) Registered Office : Vill- Thanapara, P.O. Sardah- 6271 District. Rajshahi, Bangladesh. Number of Employee : 250+ Contact Number : 0722356091 ,01711821173, 01716113809 Website : www.thanaparaswallows.org E-mail : thanaswallows@gmail.com Table 5: Organizational Profile
  • 25. 9 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 2.3 MISSION Thanapara Swallows Development Society (TSDS) mission is to empower the poor and underprivileged population by eradicating illiteracy, creating health awareness and self- employment, raising awareness among the landless for the rights of land and empowering women by creating economic and social awareness. 2.4 VISION Thanapara Swallows Development Society (TSDS) vision is to establish a democratic society by developing the socio-economic condition of the poor.
  • 26. 10 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 2.5 ORGANIZATIONAL STRUCTURE Figure 1: Organizational Structure
  • 27. 11 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 2.6 ORGANOGRAM OF HANDICRAFTS SECTION Figure 2: Organogram of handicrafts section
  • 28. 12 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 2.7 TSDS HANDICRAFTS PROGRAM The handicraft program is an ethical business programs deeper connection to the rural root. Born out to the humble resolve to empower to the marginalized rural women and enable to realize their full potential handicraft program is one of the biggest programs at TSDS since 1973. It has been working towards to the TSDS mission of empowering women through economic development and human capacity building with specific focus on the empowerment of women. The purpose was to provide a platform of rural women where they could have a place to produce products and get a fair market price. Starting a journey with providing employment for a limited number of rural women Handicrafts program rapidly extended its support by working many other artisan and crafts. The Handicrafts Program is divided into five sections: Weaving, Sewing, Embroidery, Block Batik and Coconut shell button making. In each of these sections, the villagers to make products either by special order or for general sale use local materials. Items produced range from handloom fabrics, to bed covers, wall hangings, women and children clothing to various types of bags. These products are sold largely in Japan, UK, Denmark, Korea, Taiwan, Australia and Sweden. The organization is a member of the World Fair Trade Organization (WFTO), ECOTA Fair Trade Forum, and Bangla Crafts.
  • 29. 13 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 2.8 PRODUCTS OF TSDS HANDICRAFTS Picture: Ladies Shirts Picture: Ladies Blouse
  • 30. 14 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 2.8 PRODUCTS OF TSDS HANDICRAFTS Picture: Ladies Long Dress Picture: Ladies Pants and Trouser
  • 31. 15 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 2.8 PRODUCTS OF TSDS HANDICRAFTS Picture: Ladies Shorts Picture: Men's Shirts
  • 32. 16 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 2.9 PRESENT BUYERS LIST OF TSDS HANDICRAFTS No Name of Buyer Country 1 The Fair Trade Company Japan 2 People Tree Ltd. UK 3 Decent Bangla Sweden 4 V&V Denmark 5 TWINE Taiwan 6 Ministitch UK 7 Fair Trade South Korea 8 Bhalo Australia 9 Masleen USA 10 700 Rivers USA 11 Sustainable Yours Sweden Table 6: Buyers List
  • 33. 17 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 2.10 SWOT ANALYSIS OF TSDS HANDICRAFTS PRODUCT SWOT matrix or analysis is a powerful technique for understanding organizations Strength & Weakness and looking for the Opportunities & Threats it may face. Used in a business context it helps organization carve a sustainable niche in a market. This analysis is mainly based on an imaginary situation. Figure 3: SWOT analysis of TSDS Handicrafts Product
  • 34. 18 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi CHAPTER THREE JOB EXPERIENCE OF TSDS 3.1 DESCRIPTION OF THE JOB Getting an internship opportunity in an organization like Thanapara Swallows Development Society (TSDS) was a great advantage for me. I had the opportunity in the Handicrafts section under the supervision of Mr. Mynul Haque Santo, Handicrafts section manager. TSDS is a medium-sized organization which produces wearing clothes in its factory. The main task of the marketing department is to deliver those products to real buyer, find out a new market for the existing product, informal research through fashion trend. Though there was a separate finance and accounts department in the organization, the marketing department is the main responsible unit to keep sales. As an intern, I was not given so many tasks with huge responsibility. I have to check the finished goods when they were storing that. Sometimes I had to visit the factory. I went to collect the necessary knowledge about the production process. I was involved in several activities in this organization which was very much exciting and very good learning experiences. The work experience gave me a good idea of the overall manufacturing process of their products.
  • 35. 19 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 3.2 RESPONSIBILITIES OF THE JOB  Monitor the process of collecting orders from buyer.  Observe the process of making "THANE" cloth in the factory.  Observe the process of designing cloths.  Observe the linkage of one section with another section in each steps of making final cloths.  See the product display strategy.  Visit the market where raw martials are purchased.  Talk to worker in need of research.  Talk to buyer or buyer representatives who visit the factory.
  • 36. 20 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 3.3 WORKING EXPERIENCE As an MBA student, I had to perform an internship in a business organization. I did my internship in TSDS. That was my first experience of working in a professional business environment. I was very much nervous before joining that organization. But surprisingly I found out that none of the tasks is that much hard. Everything was in proper order. The most important thing is to adjust to the professional work environment. While working in that organization the most important thing I found that interpersonal communication is the most important to work in an office environment. We need to communicate with different types of people from different social and cultural background. It is not easy to blend in a corporate environment so quickly. Positive attitude towards the job and responsibilities is also important. In an office environment where each and every activity is connected with each other, one’s performance affects the whole organization. In our personal, we don’t need to care about others but in an office the environment we consider everyone’s situation before making a decision. Hard-working is the key to any success. I had to work hard in my academic career. But working in a professional environment is even harder. Suddenly starting an 8-hour day job is not easy. I needed to develop a strong mental attitude for the successful performance in my internship. Endurance is also important. Working in a corporate environment can be exhaustive. We have to work with our superiors and subordinates. Not all times our performance is appreciated an sometimes it controls the subordinates. But everybody must take a patient approach to handle those kinds of situation. Working three months as an intern in an organization was a very important experience for me. I believe it would help me to prepare to take the challenge of the real world.
  • 37. 21 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 3.4 EVALUATION It was a great experience of working for the first time and this report has been prepared on the basis of experience gathered during the period of working. The organization did not fix any responsibilities on me. Mainly I have done production related works beside that I have done different types of tasks in different desks which is related in the value chain.
  • 38. 22 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi CHAPTER FOUR VALUE CHAIN ANALYSIS OF HANDICRAFTS SECTION AT TSDS 4.1 What IS VALUE CHAIN? Value chain analysis (VCA) is a process where a firm identifies its primary and support activities that add value to its final product and then analyze these activities to reduce costs or increase differentiation. Value chain represents the internal activities a firm engages in when transforming inputs into outputs. Michael Porter identified a set of interrelated generic activities common to a wide range of firms. The resulting model is known as the value chain and is depicted below: Figure 4: Value chain Model
  • 39. 23 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 4.2 VALUE CHAIN ANALYSIS OF HANDICRAFTS SECTION AT TSDS Porter's value chain model is highly popular in the business world. However, TSDS must not take it as a rigid, standalone framework by assigning the equal importance to all activities. The effective Value Chain Analysis requires TSDS to realize that all activities or functions do not require the same scrutiny level. Hence, the first step of adapting the Porter Value Chain framework is to identify the importance of activities according to their role in the product delivery process. Here is the list of primary value chain activities as proposed by Porter: PRIMARY ACTIVITIS The primary value chain activities of TSDS are directly involved in producing and selling the product to targeted customers. Analysis of primary value chain activities can improve the performance of TSDS as explained below. 4.2.1 Inbound logistics It is important to develop strong relationships with suppliers as their support is necessary to receive, store and distribute the product. Without analyzing inbound logistics, TSDS can face various challenges in product development phases. Analysis of inbound logistics requires a company to focus on every aspect of transformation from raw material to finished product. To get an idea about Thanapara Swallows' handicrafts product inbound logistics activities, I talked to Mr. Mainul Islam Sentu, manager of the Handicraft Section. He gives some information about the activities of this step. I asked him some questions. The questions and answers are given below.
  • 40. 24 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Question 1: Do you procure the best quality raw materials in the market? Answer: In response to this question, Mr. Sentu said: 'Yes we buy the best quality raw material in the market. In this case we have no specified supplier. We try to verify the market and buy the best raw material. However, raw material prices are one of the major regulators here.’ Raw materials quality which is procured Figure 5: Raw materials quality which is procured Interpretation: From the interview, it is found that Thanapara Swallows tries to buy the best raw materials in the market. The most important raw material for this organization's product is the yarn. Yarn is purchased from Dogachi Bazar in Pabna. In that area, there are wholesale markets of yarn. At the end of the scrutiny of the quality of the yarn, TSDS has decided to buy the best yarn at the lowest price. Other raw materials like buttons, polyethylene, and cloth color are also purchased from those markets as required.
  • 41. 25 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Question 2: Do you have any strategies to reduce the damage of raw materials? Answer: In response to this question, Mr. Sentu said: ‘Here are some strategies to reduce the damage of purchased yarn. One of them is to be properly covered during transport. Besides, the yarn is washed in clear water before being sent to different units and dried in the sunshine. After soaking in water, the hardness of the yarn is reduced and then drying in the sun. This is very helpful in preventing damage.’ Raw materials damage reduce strategy Figure 6: Raw materials damage reduce strategy Interpretation: From the interview, it is found that basically the main raw material of this organization is yarn. They first wash the yarn in clean water. After that, the yarn is dried in the sun. After that, it is sent to make yarn of different colors. Water is also used in this step. Again the yarn is dried in the sun. This is how useful raw materials are made. The hardness of the yarn decreases with the addition of water, which increases the durability of the yarn. On the other hand, it helps to reduce damage.
  • 42. 26 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 4.2.2 Operations The importance of analyzing operational activities rises when raw material arrives, and TSDS is ready to process the raw material into the end product and launch it in the market. Some examples of operational activities are machining, packing, assembling and testing. Equipment repair and maintenance also falls into this category. It includes both- manufacturing and service operations. Analysis of operational activities is important for improving productivity, maximizing the efficiency and ensuring the competitive success of TSDS. The increased productivity can help TSDS to achieve consistent economic growth, increase profitability and set a powerful basis for competitive advantage. The Handloom fabrics production process is done in two steps. First, it is made whole cloth which is also called "Thane Cloth". After that, the dress is made in accordance with the demands of the buyers. Figure 7: Manufacturing process of Handicrafts cloths
  • 43. 27 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi To get an idea about the manufacturing process, I talked to the managers of several units and a few general staff. They give some information about the activities of this step. As shown below:  Thane Cloth: This step is first dyed in yarn. After that, the yarn is kept in sunlight to dry. The dry yarn is now filled with bobbin with a hand charka machine to make clothes. After that, the Handloom fabrics of various colors are made of yarn from the bobbin. This Thane cloth is used to weave by the traditional TAT machine in our village. Then the cloth is sent to the quality controller. After his observation, the cloth is tagged. At the end of this step, it is either sent to the design section or taken to the warehouse. The production manager monitors this step very efficiently.  Final products: This step first involves designing the clothes according to the needs of the buyers. The cutting master does these designs. After that, the cloth is sent for sewing. When sewing is completed, then the clothes are sent back to the quality controller's room. At the end of his checking there, he sent the clothes for labeling. Then the clothes are sent for iron. After the quality controller inspection again, the clothes are sent for packaging. After that, the final cloths are stored in their ware house.  Other activities: Many times, after the iron of the cloth, the clothes are sent back to the factory for various hand designs. This task is a time-consuming task. Female workers do this with great care. It increases the value of the product a lot. For logical reasons, the cost of producing such commodities is also increased by a few times. In addition, the workers here design bed sheets, pillow covers and small bags in various designs when the demand for products is low.
  • 44. 28 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Question 3: Is your production system flexible? In order to answer this question, I spoke to 20 employees who are directly involved with the production department. Their opinion is given in the form of a table. Table 7: Employee feedback about flexible production system Option Frequency Percentage Flexible 12 60% Not Flexible 4 20% Neutral 4 20% Total 20 100% Source: Worker Figure 8: Flexible production system Interpretation: From the survey, it is found that there is flexibility in the production system. Because about 60 percent of workers say they have enjoyed flexibility. Twenty percent said no and the remaining 20 percent made no comment. However, flexibility in production means the ability to cope with product diversification. It is related to the fashion trade. It is important to have flexibility in production to increase the value of the product. 0 60%20% 20% Flexible Not Flexible Neutral
  • 45. 29 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Question 4: Do you have a Wide product range? Answer: In response to this question, Mrs. Sofia Khanam, Production Manager TSDS said, "Yes, we have a wide product range. Because we have enough variety in size, color, taste or functionality to appeal to a wide range of potential customers.” Wide Product range Figure 9: Product range Interpretation: From the discussion, it is found that, their product range is quite wide. Because they can produce new product by different designs, sizes, and colors with core products. This plays a very helpful role in holding the market. It also helps create new customers. On the other hand, the wide range of the products also helps to reduce the cost and increase the value.
  • 46. 30 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Question 5: Do you try to regularly improve the appearance of the products? Answer: In response to this question, Mrs. Sofia Khanam, Production Manager TSDS said, "Yes, we always try to improve the appearance of our product because if the product is not good to see, buyers are not interested to buy.” Regularly improve the appearance of the products Figure 10: Regularly improve the appearance of the products Interpretation: From the discussion, it is found that, TSDS constantly strives to improve the appearance of products. The appearance of the product is part of the value increase. Therefore, consumers always think of the design is updated in their clothing. The dress is designed for the basis of the nation culture or seasonally. However, the top priority is the current fashion trade. TSDS tries to make traditional clothing in line with the present.
  • 47. 31 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Question 6: Do you try to the prevention of product pre-mature failure? In order to answer this question, I spoke to 20 employees who are directly involved with the production department. Their opinion is given in the form of a table. Table 8: Employee feedback about the prevention of product pre-mature failure Option Frequency Percentage Yes 18 90% No 2 10% Total 20 100% Source: Worker Figure 11: Employee feedback about the prevention of product pre-mature failure Interpretation: From the discussion, it is found that, almost all workers working at TSDS try to prevent pre-failure. This reduces the wastage rate. Production costs are also decreased. It is easy to reduce the price of the product by simply adding value. Otherwise, the rate of wastage increases. Due to the price of the product increases & it creates negative ideas in the mind of the buyer. 0 90% 10% 0% Yes NO
  • 48. 32 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Question 7: Do you regularly use updated technology to improve product performance? Answer: In response to this question, Mrs. Sofia Khanam said, "No, we don't use any of the updated technology here. Our workers are used to the transitional system for production.” Use updated technology Figure 12: Use updated technology Interpretation: From the discussion, it is found, there is no updated technology used to improve product performance. Because everyone here is locally skilled but not accustomed to working with modern technology. They are traditionally accustomed to using hand-operated machinery. As a result, the company is unable to attract young consumers with their products. This is putting them in business risk. On the other hand, it is difficult to find new markets.
  • 49. 33 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 4.3.3 Outbound Logistics Outbound logistics include the activities that deliver the product to the customer by passing through different intermediaries. Some outbound logistics activities are material handling, warehousing, scheduling, and order processing, transporting and delivering to the destination. TSDS can analyze and optimize outbound logistics to explore competitive advantage sources and achieve its business growth objectives. Because, when outbound activities are timely managed with optimal costs and product delivery processes put a minimum negative effect on the quality, it maximizes customer satisfaction and increases growth opportunities for the firm. TSDS should pay specific importance to its outbound value chain activities when its offered products are perishable and require quick delivery to the end customer. Figure 13: Outbound Logistics To get an idea about Thanapara Swallows' outbound logistics activities, I talked to Mr. Arafat Rahman, In-charge warehouse. He gives some information about the activities of this step. . I asked him some questions. The questions and answers are given below.
  • 50. 34 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Question 8: Do you deliver products on time? In response to this question, Mr. Arafat Rahman, In-charge warehouse said, ‘Yes, we try our best to deliver our products at the right time, because if product delivery is delayed, the buyer will make a false impression about us.’ Deliver products on time Figure 14: Deliver products on time Interpretation: From the discussion, it is found that, Thanapara Swallows make every effort to deliver their products at the right time. This creates a kind of confidence in the consumers about the brand. Buyers become loyal to these brands. The same buyer repeatedly wants to buy products of the same brand. Family or friends recommend buying these brand products. Due to which it is easy to collide with other competing brands. This creates huge potential for commercial gain.
  • 51. 35 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Question 9: Have your delivery capabilities is Flexible? In response to this question, Mr. Arafat Rahman, In-charge warehouse said, ‘Yes our delivery capability is Flexible because we have enough staff for product delivery. They are capable of delivering any quantity of product delivered.’ Flexible delivery capabilities Figure 15: Flexible delivery capabilities Interpretation: From the discussion, it is found that, Thanapara Swallows' delivery capability is Flexible. Because they have about 13 brand promoters who are only export related. So they have no problem with delivering any quantity of product. TSDS officials believe that it is possible for them to send any quantity of goods to any country in the world. This brand promoter helps to get the order again. Basically, they maintain contact with foreign buyers on various issues. This helps to get order.
  • 52. 36 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 4.3.4 Marketing and sales: At this stage, TSDS will highlight the benefits and differentiation points of offered products to persuade the customers that its offering is better than competitors. Only producing a high quality product at affordable costs and distinctive features cannot create value until TSDS invests on the marketing and sales activities. The sales agents and marketers play an important role here. Some examples of TSDS's marketing and sales activities are- sales force, advertising, promotional activities, pricing, channel selection, quoting and building relations with channel members. The company can use the marketing funnel approach to structure its marketing and sales activities. The marketing strategies can either be push or pull in nature, depending on the TSDS’s business objectives, brand image, competitive dynamics and current standing in the market. Effective and wisely integrated marketing activities can develop the brand equity of TSDS and help it stand out from the competition. However, TSDS must avoid making false commitments about product features that cannot be fulfilled by the production department. It indicates the need to ensure coordination between different value chain activities. To get an idea about Thanapara Swallows' marketing and sales activities, I talked to Mr. Mainul Islam Sentu, manager of the Handicraft Section. He gives some information about the activities of this step. I asked him some questions. The questions and answers are given below.
  • 53. 37 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Question 10: Do you try to improve relationships with suppliers and customers? In response to this question, Mr. Mainul Islam Sentu, manager of the Handicraft Section said, ‘Yes, we always strive to develop relationships with buyers and suppliers because as a production organization we have to do business with people of these two levels. We bought the raw material from one of them. We sell the final product to others. Having a good relationship with both parties later in our business practice.’ Relationships with suppliers and customers Figure 16: Relationships with suppliers and customers Interpretation: From the discussion, it is found that, TSDS always strives to develop relationships with buyers and suppliers because they think of it as part of their business. Because of this enhanced relationship between the two parties, TSDS can easily buy good raw materials on one side. On the other hand, when sales can increase then Increases customer loyalty. This is one of the main ways to establish a brand.
  • 54. 38 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Question 11: Do you have any strategy for offering high-quality information to your products? In response to this question, Mr. Mainul Islam Sentu, manager of the Handicraft Section said, ‘Yes, we contact our regular customers for new information. When we create a new design dress, we send the information about it to our target customer’ Offering high-quality information to customers Figure 17: Offering high-quality information to customers Interpretation: From the discussion, it is found that, TSDS shares any new information about its products with regular buyers. That's why they communicate with customers' personal e-mails. From there, they receive orders for new products. This increases their customer satisfaction. As a result, the sale of the product increases. Financially, a long-time relationship is established with the organization and customers. That will benefit the organization in a commercial way.
  • 55. 39 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Question 12: Do you have any strategies to create brand awareness, reputation and image development? In response to this question, Mr. Mainul Islam Sentu said, ‘No, we do not use formal techniques. We do not advertise commercially. However, we participate in fairs organized by Bangladesh Embassy in different countries.’ Strategies to create brand awareness Figure 18: Strategies to create brand awareness Interpretation: From the discussion, it is found that, although the TSDS does not formally use any strategy. However, they participate in trade fairs organized by the Bangladesh Embassy in different countries. Buyers from different countries come to these fairs. Interested buyers want to know about the organization and its activities. TSDS collects e-mail and mobile numbers of the interested buyers. Later, when a new feature or product is updated, they communicated to the buyer.
  • 56. 40 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Question 13: how is the relationship between product, research, and marketing departments? In order to answer this question, I spoke to 15 employees who are directly involved with the marketing and sales department. Their opinion is given in the form of a table. Table 9: Employee feedback about the relationship between various departments Option Frequency Percentage Very Good 10 66% Good 3 20% Bad 2 14% Total 15 100% Source: Worker Figure 19: Employee feedback about the relationship between various departments Interpretation: From the survey, it is found that, the relationship between products, research, and marketing departments is very good. As a result, the organization's linkage rate is even better. It also helps reduce production costs. Moreover, the standard value of the product increases. On the other hand, the Procurement Department can benefit from properly coordinating this relationship. This relationship can assist the Procurement Department in its entirety in any procure. Very Good 66% Good 20% Bad 14% 0%
  • 57. 41 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 4.3.5 After Sales service: The pre-sale and post-sale services offered by the TSDS will play an important role in developing customer loyalty. The modern customers consider post-sale services as important as marketing and promotional activities. The power of negative e-WOM due to poor support service cannot be undermined in the current technologically advanced era. The company must analyze its support activities to avoid damaging brand reputation, and instead use it as a tool to spread positive word of mouth due to quick, timely and efficient support services. To get an idea about after sales service activities, I talked to Mr. Raihan Ali, Executive Director TSDS. He gives some information about the activities of this step. I asked him some questions. The questions and answers are given below.
  • 58. 42 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Question 14: Do you use high-quality technical assistance for Services? In response to this question, Mr. Raihan ali said, ‘No, we do not use the latest technology for after-sales service. In fact, the products we sell do not require the after-sales service. Even then many times I change the product on the basis of the buyer's complaint.’ Use technical assistance for Services Figure 20: Use technical assistance for Services Interpretation: From the discussion, it is found that, it is a medium sized organization. Since the main task is to make wearable clothes. Therefore, each cloth is properly verified before packaging. This selection is confirmed by the Quality Controller, who is responsible by the handicraft manager. Therefore, the customers of this organization do not need after sales.
  • 59. 43 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi SUPPORT ACTIVITIES The support activities play an important role in coordinating and facilitating the primary value chain activities. TSDS can also benefit from the analysis of its support activities as explained below. 4.3.6 Procurement: The procurement in value chain denotes the processes involved in purchasing the inputs that may range from equipment, machinery, raw material, supplies, raw material and other items necessary for producing the finished product. Due to its linkage with multiple value chain activities, TSDS should carefully consider its procurement activities to optimize the inbound, operational and outbound value chain. To get an idea about procurment activities, I talked to Mr. Raihan Ali, Executive Director TSDS. He gives some information about the activities of this step. I asked him some questions. The questions and answers are given below.
  • 60. 44 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Question 15: Do you have any Reliable transportation to ensure procure raw materials? In response to this question, Mr. Raihan ali said, ‘No, we do not have any reliable transportation system to collect raw materials.’ Reliable transportation system Figure 21: Reliable transportation system Interpretation: From the discussion, it is found that, Thanapara Swallows has not own transportation system. They are assisted by a third party for delivery at the end of any raw material purchase. This creates the possibility of wasting raw materials. Again it is too late to reach the raw materials for poor management. At that time, the production system slowed down.
  • 61. 45 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Question 16: Do you procure high-quality Machinery for your organization? In response to this question, Mr. Raihan ali said, ‘Yes, we prioritize quality when procuring our machinery because the desired production is not possible with Less Quality Machines.’ Machineries Quality Figure 22: Machineries Quality Interpretation: From the discussion, it is found that, Thanapara Swallows give priority to quality when buying machinery because low-quality machines produce less. Again the value of the product cannot be retained. As a result, the rate of waste increases. This creates a negative impact on the value of the overall product and the business.
  • 62. 46 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 4.3.7 Human Resource Management: TSDS can analyze human resource management by evaluating different HR aspects, including- recruiting, selecting, training, rewarding, performance management and other personnel management activities. Effective HR management can allow TSDS to reduce competitive pressure based on motivation, commitment, and skills of its workforce. The company can also achieve its cost minimization objectives by analyzing hiring and training costs with their relative return. The heavy dependence of TSDS on employees' talent will increase the importance of this value chain support activity. To get an idea about human resource management activities, I talked to Mrs. Mahmuda Ginee , Assistant Director TSDS. He gives some information about the activities of this step. I asked him some questions. The questions and answers are given below.
  • 63. 47 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Question 17: Do you have any rewards policy for worker performance? In response to this question, Mrs. Mahmuda Ginee said, ‘We have no formal rewards policy for our workers. Reward policy Figure 23: Reward policy Interpretation: From the discussion, it is found that, there is no formal rewards policy for the Thanapara Swallows staff. Since it is a small organization, there are some disadvantages to adopting such a policy. So, when satisfied with the performance of the employee, the owner party celebrates with immediate congratulations.
  • 64. 48 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Question 18: Do you have any personnel training program for an employee? In response to this question, Mrs. Mahmuda Ginee said, ‘We have no formal training program for the workers. Training program Figure 24: Training program Interpretation: From the discussion, it is found that, there is no formal training system for the worker of this organization. The new workers learned the work by seeing other worker. Since the worker here are all women and everyone is local. Therefore, the new employee does not have to face any difficulty to learn the job. This work of needle yarn is learned by families. Here they just have to learn how to operate the machine. However, the worker feels that organizing training at different times will increase their skills.
  • 65. 49 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 4.2.8 Technology development In a modern, technological advanced era, almost all value chain activities depend on technological support. The technological integration in production, distribution, marketing, and human resource activities requires TSDS to realize the importance of technology development. It can be divided into product and process technological development activities. Some examples are- automation software, technology-supported customer service, and product design research and data analytics. The research and development department of TSDS is classified in this category. To get an idea about technological development activities, I talked to M rs. Mahmuda Ginee , Assistant Director TSDS. He gives some information about the activities of this step. I asked him some questions. The questions and answers are given below.
  • 66. 50 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Question 19: Do you use updated technology regularly? In response to this question, Mrs. Mahmuda Ginee said, ‘The workers here are not as skilled as industrial workers. They are mainly local skilled workers. Moreover, hand-operated machines are used for production purposes. So in that sense, we do not use updated technology or machinery.’ Using updated technology Figure 25: Using updated technology Interpretation: From the discussion, it is found that, there is no use of modern technology in that sense because of the production work has done on hand operate machines. Moreover, there is no use of modern technology for product delivery. In view of this, the use of modern technology in this organization may not be necessary.
  • 67. 51 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Question 20: Do you have any research and development section? In response to this question, Mrs. Mahmuda Ginee said, ‘No, we don't have such a department. However, the marketing department conducts research on fashion trends, designs, consumer attitudes, etc. to a small extent. The handicrafts section manager is leading the work.’ Research and development Figure 26: Research and development Interpretation: From the discussion, it is found that, although Thanapara Swallows does not have a formal research department, the marketing department does research on fashion trends, designs, and consumer attitudes. There is no substitute for research to increase sales or understand new market demand. Research can be done to understand the needs of the buyers and make products accordingly. In order to maintain a good reputation in the market for a long time, the organization continues its research activities.
  • 68. 52 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 4.2.9 Infrastructure The firm infrastructure denotes a range of activities, such as- quality management, legal matters handling, accounting, financing, planning, and strategic management. Effective infrastructure management can allow TSDS to optimize the value of the whole value chain. TSDS can control the infrastructure activities (or commonly called overhead costs) to strengthen the competitive positioning in the market. To get an idea about infrastructure, I talked to Mr. Raihan Ali, Executive Director TSDS. He gives some information about the infrastructure of this organization. I asked him some questions. The questions and answers are given below.
  • 69. 53 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Question 21: Do you have any extensive database for marketing?? In response to this question, Mr. Raihan ali said, ‘No, there is no extensive database system that will support our marketing process.’ Extensive database Figure 27: Extensive database Interpretation: From the discussion, it is found that, there is no extensive database system that will assist in the sales operation. However, the organization has done this work to a lesser extent. They collect information on target buyers while attending different fairs. The appointed representative made a list of them. Later, TSDS contacted that's buyers to inform them about the new product.
  • 70. 54 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Question 22: Do you have any advanced information system to get deeper customer insights? In response to this question, Mr. Raihan ali said, ‘Yes, we arrange to provide superior information about products to attract customers. In this case, the attempt is made to convey the correct information to the buyer as per his demand.’ Advanced Information System Figure 28: Advanced information system Interpretation: From the discussion, it is found that, they basically share the story behind making products with consumers. In order to design a product of female workers, the organization provides information based on the story of the difficulty of completing the task. Thanapara Swallows provides these stories in picture format to attract buyers.
  • 71. 55 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 4.4 Cost drivers of TSDS Handicrafts Product After reviewing all the interviews, it was found that TSDS can control the following drivers to add value, set differentiation basis and enhance efficiency. Figure 29: Cost drivers However, it is important to note that costs can be reduced only to some extent. TSDS Value Chain Analysis must also consider the customers’ perceived value that may justify the higher price charged by the company compared to competitors.
  • 72. 56 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 4.5 Data Analysis based on buyer interview The organization does not sell products directly to the consumer. They sell wholesale products to popular brands in different countries. These buyers representative come directly to factory visits to observe the progress of the work. I talked to representatives about various issues. It can be seen that five interviewees ranked 4 buying factors that were mentioned to them, as the most important buying factors when purchasing TSDS product. Interviewees ranked the buying factors from 1 to 5, 1 being least important to 5 being most important. Buying Factor 1 2 3 4 5 Total score Product quality consistency 1 4 23 Brand preference 1 3 1 19 Flexible Payment terms 2 2 1 9 Delivery capability 3 1 1 18 Table 9: Data Analysis based on buyer interview Each of the ranks holds individual value depending on the importance of a buying factor. Each rank is valued in the following points: 5 points = Most important buying factor 4 points = Important buying factor 3 points = Average 2 points = Not so important buying factor 1 point = Least important buying factor
  • 73. 57 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Product quality consistency From the table, it is clear that “Product quality consistency” gets the score of 23. Out of five, four interviewees ranked it 5 being the most important buying factor and one interviewee ranked it 3. So, the total score comes, (4x5) + (1x3) = 23. Quality Consistency of TSDS Product Figure 30: Quality Consistency of product Interpretation: From the interviews, it is found that TSDS product quality consistency is very high. It is very helpful to create a strong brand image for the buyer mind. Therefore, TSDS easily enjoy competitive advantage then their competitor.
  • 74. 58 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Brand Preference From the table, it is clear that “Brand preference” gets the score of 19. Out of five, three interviewees ranked it 4 being the important buying factor and one interviewee ranked it 5 and another one interviewee ranked is 2. So, the total score comes, (3x4) + (1x5) + (1x2) = 19 Brand Preference Figure 31: Brand Preference Interpretation: From the interviews, it is found that TSDS brand preference is high. Consumers are repeatedly to buy the products of these brands for the quality of the product. This factor plays a very important role in gaining a better position than its competitors in the market.
  • 75. 59 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Flexible Payment Terms From the table, it is clear that “Flexible Payment Terms” gets the score of 9. Out of five, two interviewees ranked it 2 being the not so important buying factor and also two interviewee ranked it 1 and one interviewee ranked it 3. So, the total score comes, (2x2) + (2x1) + (1x3) = 9 Conditional Payment Terms Figure 32: Flexible payment terms Interpretation: From the interviews, the buyer has no problem with the payment method of TSDS. Customers simply prefer to order here because of the flexibility to pay the price. This factor greatly helps in developing business relationships with buyers.
  • 76. 60 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Delivery capability From the table, it is clear that “Delivery capability” gets the score of 18. Out of five, Three interviewees ranked it 3 being average impact on buying factor & also one interviewee ranked it 4 and another one interviewee ranked it 5. So, the total score comes, (3x3) + (4x1) + (5x1) = 18 Delivery Capability Figure 33: Delivery capability Interpretation: From the interviews, it is found that TSDS delivery capability is high. It is also very helpful to create a strong relationship with the buyer. When the market demand is high, buyers place more orders here for this factor. This will benefit the company in a commercial way.
  • 77. 61 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 4.6 LINKAGE OF TSDS VALUE CHAIN MODEL Note: Arrow indicate support flow Figure 34: Output of value chain analysis
  • 78. 62 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi CHAPTER FIVE FINDINGS, RECOMMENDATIONS AND CONCLUSION 5.1 FINDINGS The role of value chains is essential in any manufacturing organization. Because the value associated with the product is so deep that it can create a competitive advantage than other competitors and helps the buyer to make positive ideas about the product. By properly analyzing every step of the value chain, it is possible to produce products that are suitable for the customer by reducing production costs and adding appropriate values. This report deals with the value chain analysis of Thanapara Swallows Development Society (TSDS) handicrafts section. Inbound Logistics:  Thanapara Swallows purchase the best quality raw materials in the market.  They take a number of effective strategies to reduce the damage of purchased raw materials. Manufacturing:  The production process of Thanapara Swallows is quite flexible.  They have a wide product range.  TSDS always try to improve the appearance of their product.  Their workers try to prevent pre-failure.  But they do not use any updated technology to improve the performance of their products.
  • 79. 63 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Outbound Logistics:  They do their best to deliver the products at the right time.  Thanapara Swallows' product delivery capacity is more flexible. Marketing and Sales:  They always try to maintain a good relationship with the buyer and the supplier.  They contact targeted buyers directly to provide information about new products.  However, they do not use formal techniques to raise brand awareness.  They have good links to action plans within the manufacturing, research and marketing departments. After sales Services:  Thanapara Swallows does not use any modern techniques for its after-sales service. Procurement:  They have no transportation system of their own to provide fast product delivery.  But they procure the best quality machinery for use in production.
  • 80. 64 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Human resource management:  There is no rewards system for the performance of Thanapara Swallows workers.  There is no training system to improve the skills of their staff. Technology development:  They do not use any advanced technology.  They do not have Research and Development Department. Firm infrastructure:  They have no extensive database development for effective marketing.  They have no advanced information system to get deeper customer insights.
  • 81. 65 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 5.2 RECOMMENDATIONS Based on my observations, I made recommendations that may help to improve the value of TSDS handicrafts sections-  TSDS can select and source premium quality raw material and develop customer loyalty on the basis of it. It can also use Value Chain Analysis to develop brand identity.  TSDS can also achieve competitive differentiation by speeding up the delivery of offered products to the final customers.  TSDS may use modern machines for production. In addition to the traditional hand- operated machines, production rates will increase if you start using modern machines.  Understanding the needs of the final buyer, the dress should be designed in a timely manner. This will help to attract younger buyers.  TSDS can start a training program to improve workers skills. It can reduce waste by increasing the efficiency of the worker. At the same time, the reward system should be introduced to well-performing workers.  The web site needs to be more informative. If necessary, the story behind the product making must be attached.  To Arrangements for the sale of products in the domestic market. The need to increase the sale of products by contacting well-known companies such as Aarong, Bishwo Rang, Foring, Desi Dosh etc, the country's top local clothing brands. This will help increase production and gain the economy of scale. Hopefully, these recommendations will help to TSDS handicraft section product value and, above all, increase product sales. Moreover, if these measures are taken seriously, the organization will get more benefits than its other competing companies. This is called competitive advantage.
  • 82. 66 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 5.3 CONCLUSION After the liberation war, Sweden Swallows established Thanapara Swallows Development Society (TSDS) from the thought of helping women who lost their husbands in the war in a village called 'Thanapara' in Charghat police station in Rajshahi district. The organization produce THANE clothes with the help of a basic TAT machine and also produces various dresses with that cloth. At one time there was huge demand for such products, but the number of producers was counted. But now the demand for such products has decreased, while the number of producers has increased. Therefore, from the production of the product to deliver the consumer, it is time to reduce the cost of all steps and provide the highest value. In order to survive in this market of competitiveness, therefore, the product of the new design as per the demands of the era must be delivered to the consumers. Otherwise, no production-oriented organization will survive in this world of free-market systems.
  • 83. 67 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi BIBLIOGRAPHY  Annual Report of Thanapara Swallows Development Society (TSDS).  Web Site: www.thanaparaswallows.org  Competitive advantage Creating and sustaining superior performance by Michal E. Porter.  Strategic Brand Management (Second Edition) by Kevin Lane Keller.  Principles of Marketing (Sixteen Edition) by Philip Kotler.  Strategic Management Competiveness and Globalization by Michael A. Hitt.  Strategic Management (10th Edition) by Charles W. L. Hill & Gareth R. Jones.  www.en.wikipedia.org/wiki/Handicraft  www.en.wikipedia.org/wiki/Fair_trade  www.peopletree.co.uk
  • 84. 68 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi Appendix Questionnaire Dear Sir, I am a student of Institute of Business Administration (IBA), Rajshahi University. I am currently assigned to an internship at TSDS's handicraft Section. My internship topic is Value Chain Analysis of handicrafts section at TSDS. The responses will be used for academic purposes and its confidentiality will be strictly maintained. Questionnaire for responsible person who are related in handicrafts section at TSDS 1. Do you procure the best quality raw materials in the market? 2. Do you have any strategies to reduce the damage of raw materials? 3. Is your production system flexible? 4. Do you have Wide product range? 5. Do you try to regularly improve the appearance of the products? 6. Do you try to the prevention of product pre-mature failure? 7. Do you use any strategies for lower defect rate? 8. Do you regularly use updated technology to improve product performance? 9. Do you use any strategies to reduce product damage? 10.Do you deliver products on time? 11.Have your delivery capabilities is Flexible? 12.Do you try to improve relationships with suppliers and customers? 13.Do you have any strategy for offering high-quality information to your products?
  • 85. 69 Value Chain Analysis Of Handicrafts Product At Thanapara Swallows Development Society (TSDS) Institute Of Business Administration (IBA) University Of Rajshahi 14.Do you have any strategies to create brand awareness, reputation and image development? 15. How is the relationship between product, research, and marketing departments? 16.Do you use high-quality technical assistance for Services? 17.Do you have any advanced information system to get deeper customer insights? 18.Do you have any rewards policy for worker performance? 19.Do you have any personal training program for an employee? 20.Do you use updated technology regularly? 21.Do you have any Reliable transportation to ensure a quick delivery? 22.Do you procure high-quality Machinery for your organization?