Walton Bangladesh

REPORT ON WALTON
Business insights

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Team Azimuth
MD: Musfikus Salehin………………………………….1520233031
MD: Symun Hasan Lian……………………….……….1521213631
MD: Fazla Shahriar………………………...………….1521298631
Emtiaz Shahriar……………………………….………..1521438633
Nurul Azim Sunny…………………………………...….1530528630

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Tableof Contents
SL No Topics Page
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
ChapterOne (Introduction)
Introduction to Walton
Key personnel of Walton
Various products ofWalton
Mission
Vision
Strategic intent
Different departments of Walton
ChapterTwo (SWOT Analysis)
SWOT analysis
ChapterThree (SituationalAnalysis)
Market analysis
5C analysis
PEST analysis
ChapterFour (Porter`s Five Forces Model)
08
09
11
12
12
13
14
15
16
20
21
22
23
25
26

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16
17
18
19
20
21
22
23
24
25
26
27
28
29
Market attractiveness of Walton Group
ChapterFive (Strategic Applications)
ChapterSix (Different ManagementIssues)
Changing organizational structure
Challenge of more dynamic environment
New & redefined business strategy
Increasing diversity
Terms related to competitive advantage
Customer oriented view
Flexible quarter for mobile
Cold management
ChapterSeven (Conclusion)
Major Sources
References
27
30
34
35
35
36
36
36
36
37
38
40
45
46

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Abstract
Date August 2016
University North South University
Course MGT 210
Faculty ABU
Title Report on Walton.
Purpose of the study The report shows several business insights of Walton
Methodology Data collection, Online research.
Keywords Mission, vision, SWOT analysis,5Cs analysis.

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Message from Chairman
Walton has attained prominence as a leader in the field ofelectrical, electronics,
automobiles and other appliances brand with highest quality standards and
recognized safety performance. Walton bases itself in the heart of Bangladesh
upon the production of hi-tech and high value added electronics products
focusing environment friendly operation and waste management system. We
have a long tradition of serving our valued customers to their complete
satisfaction through efficient management, excellent workmanship and after
sales service, which we continue to maintain with our untiring efforts. Our HR
policies and practices are among the best in the industry, valuing the essentials
in attracting, inducting/engaging and retaining the high quality professionals. We
believe in employee satisfaction, upgradation of their skill levels and for this
purpose, the group invests a lot in training & development, incentive schemes,
bonus,etc.
In an era of advanced technologies and new techniques, we continuously strive
for innovation and enhanced efficiency. We are offering a wide range of
advanced technology spanning products from Refrigerators, Freezers, Air
Conditioners, LED/ LCD televisions, Motorcycles, Smart Phones to Other
Appliances.
Walton is the preferred choice of millions of customer across the world because
of its reliability and commitment to quality and price. We are operating many
countries in the world and in the process ofsetting up new operation in markets
such as USA, Europe, Latin America and Africa where we see emerging
opportunities.
I believe, we will emerge on a stronger footing, through a series of management
initiatives targeted at strengthening our core operations including investment in
compressorfactory, home appliances and mobile phones.
S.M. Nurul Alam Rezvi
Chairman of Walton Group.
(collected from Walton official website)

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Executive Summary
This report is on Walton Group to evaluate the performance of it towards customer
satisfaction and integrity as well as the future prospects of Walton Group, regarding appliances
industry, in a developing country like Bangladesh, where it wants to be the pioneer in this
industry in next 5 years.
As the income range of various income group increases, their buying ability increases
and taste for various electronics products changes. Customers want more affordable quality
products within their budget and as a growing company, Walton focus on consumer comfort
and entertainment along with the proper combination of price with their innovative, glossy and
top-notch artificial products. The related strategies help the organization to compete better with
other competitors. Some of the rivalry companies are tech giants like Samsung, Sony etc. In
order to compete effectively with them not only the price-sensitive strategies can help Walton
but also different managerial decisions about their internal and external environment plays an
important role.
To be the leader in appliances industry in Bangladesh, Walton will face challenges from
more foreign brands. The growing pressure of more modest electronics and automobiles will
be another big issue for Walton. Challenged by increasing competition from the local and
foreign brands and with a huge sales target, Walton realized that aggressive and efficient
business is the best way for them. The skilled managers keep their eye on coming decades and
take decisions in real time to adapt their business strategies to cope with changing environment.
We found that the percentage of Walton`s electronics products sale per week is 31 to
40, which is relatively higher than other competitors but in the case of the refrigerator the
percentage is only 10, which needs to be higher in order to capture market share effectively. In

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the case of customer satisfaction, we found that 27.5% of the respondents found Walton`s
services as satisfactory.70% of the respondents think that the price isn`t good enough and only
30% is the opposite thinker.72.5% of respondents said that the advertising program of Walton
isn’t effective enough.
Every organization has to face some problem and Walton isn’t different. The presence
of the company in electronics and automobile’s industry is promising and enriched by several
innovative future projects. Stable political and economic condition, as well as categorical
government help, will help Walton to flourish its business in the domestic market and
international market as well.
Data Source:Internet (slideshare.com)

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CHAPTER ONE
Introduction to Walton Group.

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1.1 INTRODUCTION TO WALTON GROUP.
Walton group of industries is the leading group of Bangladesh founded in 1977, by S.M
Nurul Alam Rezvi, as a trading company. After its introduction to now on, numerous
subsidiaries and alliances enriched the group and as a consequence, they went international.
Now Walton group has businesses over worldwide with about 10,000 employees. Their
successful step making is just got spicy flavour with a set of new future plans.
Now, let’s have a look at the Walton Group at a glance.
WALTON GROUP
Walton Group (A sister concern of R.B Group of Companies LTD.)
1.Headquarter 1.Walton Hi-Tech Industries LTD.
Chandra, Palikir, Jaipur
2.Company type Trading and Manufacturing company.
3.Company`s Objective Receiving an economic return on its investment and contribute to the
economic development of a technologically sensitive country like
Bangladesh.
4.Owner Bangladesh is the only owner of the company.
5.Certificates ISO 9001:2008 standard certified.
6.Factories Walton Hi-Tech Ind. Ltd (2,160,000 square feet).; Walton Micro Tech. Corporation
& Walton Corporation Ltd.
(Chandra, Kaliakoir, Gazipur.)

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7.The official business startedin. 1978
9.A present number of
customer care services
120 and rising.
10.The Present number
of employees
Over ten thousand worldwide.
11.Target customers Middle-income group.
12.Industries involved Electronics, steel, textile & automobiles.
13.Main Market Europe, Africa, Oceania,Mid East, Eastern Asia.
14.Export percentage 91 to 100%
15.The number of production
lines
Over 10.
16.Most important source
of income
 Electronics &
 Automobiles
17.Market share 35% market share in the appliances industry.
18.Business type Cash and hire system.
19.Business collaborationwith Peoples Republic of china &
Peoples Republic of Korea.
20.Near future plans a. Build an automobile and motherboard factory in Bangladesh.
b. Laptop & IC production.
c. Semiconductor production from country made raw materials.
Table 1: Walton Group at a glance.

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1.2KEY PERSONNEL OF WALTON GROUP.
S.M Nurul Alam Rezvi (The person with hat), Founder and chairman of Walton Group.
Ilias Kanchan, Executive Director of Walton Group.
S.M. Shamsul Alam, Managing Director, Walton Hi- Tech
Industries Ltd.

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1.3 VARIOUS PRODUCTS OF WALTON GROUP.
(Electronics and automobiles aided by steel and textile related products)
Walton Group`s main products are electronics and automobiles. The steel and
textile related products basically assist/aid in the major product`s designing. It has warehouses
in other countries like china etc.
1.4 MISSON
Based on Walton`s primary structure, it will be the pioneer and strong leader in
the electronics and automobile industry in Bangladesh and worldwide. They can achieve it by
….
a. Ensuring quality products to their customers.
b. Ensuring quality services.

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c. Enhancing the customer analysis program and giving them proper service by mixing
the management, marketing or other department related decisions for the customer
satisfaction and long term customer relationship
d. Elevating the service of customer cares.
e. Implementing an environment that reward team spirit, enthusiasm, innovation, and
friendship.
f. Allocating resource in such a way that will ensure maximum efficiency for Walton.
1.5 VISION
Walton vision is `It`s Our Product` or `Amader Ponno`. From a reliable source,
we collect the elaboration or description of their vision according to which the employee
activities aligned. The elaboration is given below.
`Highest priority to customers’ satisfaction providing latest technology-based
world-class electrical, electronics and automobile products with innovative designs, attractive
models, and excellent quality`
(collected)
For this good, clear, memorable and concise mission and vision statement in
future Walton group can have access to some great opportunities. Like….
 Attracting & hiring new talents.

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 Increasing the productivity of company while using all of their resources to implement
their strategic plans successfully and efficiently.
 Going one step ahead for being the leading appliances manufacturer in Bangladesh &
worldwide.
 And of course, this well-stated mission and vision statement will help them to build or
enhance the organizational culture.
1.6STRATEGIC INTENT.
Walton group`s strategic intent is to be the global leader in appliances industry.
This is not impossible for near future. Some ADB visitor`s said, some years ago while visiting
Walton`s factories, that Walton will be big like Samsung Electronics one day if they can
continue with their present production and satisfaction rate.
1 Corporate strategies: Exceeding customer expectation can give them more profit.
2 Mixing innovative product features to new market environments & areas and acquire
substantial market share.
3 Promote good corporate image and enhance the distribution channel.

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1.7 VARIOUS DEPARTMENTS OF WALTON.
Figure 1: Various departments of Walton Group.
•This department`s job is to prepare accounts report
and financial report.
•Central accouting process and making sure that
nothing goes wrong.
Accounts
Department
•Monitoring and collevting various credit data of field
officers.(Field officers are one of the major
characteristics of WALTON.
•Supervising area manager`s data & evaluate then.
Credit
Deparment
• Working for the proper integration of 4p(
product,price,place,promotion)Marketing
Department
• In Walton both weekly and monthly reports
are submitted by this department.Audit
Department
• Major task is managing the inventory and also
record the total sales and purchases, weekly
and monthly.
Inventory
Department
•This department specialize in product distribution
and also im managing the store in bangladesh and
worldwide.
Logistic
Deparment
•After sales sevice for bulding longer lasting customer
relationship.
•Usually Walton gives 1 year product warranty for most
of the products.
Sevice
Department
•Recruitement/derecruitement; monitoring
employees ; regulating repots etc.Administration
Department

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CHAPTER TWO
SWOT ANALYSIS

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We will discuss the inquiry of the strengths, weaknesses, opportunities and threats
before Walton Group, which is known as SWOT analysis in the business world. The outline of
SWOT analysis is given at the last of this chapter.
Walton has one of the biggest manufacturing plants in South Asia. Walton receives
International Standardization Certification – ISO 9001:2008 for quality management as we
knew from the earlier chapter. The company tries to maintain the quality of its products at its
level based but still it has to face a lot of problems and challenges as well as some beneficial
prospects too. Now we will look at which challenges and prospects that enriched Walton`s
business.
1.Walton provides various kinds of appliances with many outstanding features. The
demand of Walton appliances like freezers, bikes or smartphones is increasing day by day.
2.The people of Bangladesh; they love to use their own product. The products are also
user-friendly and flexible to use.

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3.Walton provides the quality product at a lower price because it has access to
country`s raw materials and labors, better than anyone in the industry.
4.Walton uses high-technology to compete with the market. By this opportunity, the
Bangladeshi people are getting updated.
5.The staffs worked in this company are not so skilled as like the top foreign company
does. Examples include Sony, LG or Samsung. For this reason, many people do not want to
use their product.
6.The accessories used in the new product are not easily available in the local market
so consumer faces many problems when they try to repair their product.
7.There are not many service center available in the whole country.
8.Walton offers a wide range of services that enlarge the consumer’s experience.
Walton gives a new product to consumer simultaneously.
9.Most of the people of Bangladesh lives below the poverty line. The company giving
the people opportunities to overcome poverty.
10.The demand of an app developer is so high in the market and most of the market
contain business for an app developer. This is a huge opportunity to grab the profit.
11.There are too many companies in the market those are providing smart-phones but
do not maintain the minimum requirement of smart-phones that is why the popularity of
smart-phones decreasing day by day.
12.There is a huge chance in Bangladesh to have a great market but the government,
unfortunately, do not support the companies.

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13.The government also do not help the company to import the accessories the
company import the accessories of their own.
14.As the public demand is changing day by day. Public satisfaction is the most
valuable thing to run organized business.
15.The technology is updating rapidly in the world and especially the high ambitious
of our generation is increasing about technological things.
16.Walton`s product line is long and demand is high because of the positive brand
image.
17. The human resource allocation system of Walton is strong enough to create some
positive outcome.
18.Walton has some management problem and the integration among various
department isn`t sophisticated enough.
19.Technologically Walton gets advanced gradually and the capability of production
increased annually.
20. The employees get a good environment for work as well as various organizational
support like insurance, handsome salary, residential support, medical facilities, yearly bonus
etc.
21. The organizational structure of Walton is flexible.
From our discussion here`s a complete outline of the SWOT analysis of Walton
Group.

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Figure 2: SWOT analysis of Walton Group.
Strengths
 Powerfulsupply & distribution
channel as well as customer service.
 The Productsare standard and Walton is
in economies of scale and it`s MES is
high as well.
 Largest and one of the finest electronics
base in Bangladesh.
 Experienced management team and
high ethical standard.
 Its distribution capability is wide and it
got loyal customers
 As Walton is the first country owned
MNC, they used the available resources
better than anyone.
 It`s human resource distribution and
infrastructure installation is on all over
the country.
 Walton experience in appliances
industry is firm.
Weaknesses
 One major weakness is too
much inside-out thinking.
 The integration among various
departments isn`t sophisticated and a
tendency of ignoring others presents.
 The employee turnover rate in Walton is
high.
 Low percentage in case of frequency
regarding promotion effort.
 Lack of proper decorations in
showrooms.
 Some specific products charged higher.
(freezers,air conditions etc.)
than china based products.
Opportunities
 Short-term distribution
Strategies & more show rooms.
 Gradually increasing technological
improvement and socialization.
 Continuous demand for new, innovative
and quality products and services from
customers or stakeholders.
 New products developing thoughts and
positive corporate image.
 Trustworthy interconnection among
distributors & the ability to increase the
brand value through the initial offering.
 The small and local competitor of
Walton is decreasing.
 Online facilities and continuously
decreasing the price of Walton`s
products.
 The economic development of
Bangladesh.
Threats
 Switching power of customer
increased and the government
regulations on various electronics
products increased.
 A shift of buyers needs and tastes to
another product can happen.
 Now Walton has to deal with much
lower priced substitutes.
 Adverse demographic change can
happen.
 Increased operating costs and price war.
 Sabotage while installation.
S
S
W
O
O
T
T

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CHAPTER THREE
Situational Analysis

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In this chapter, we are going to look at Walton Group`s internal and external
environment/microenvironment and macro-environment, in order to gain an understanding of
Walton`s capabilities as well as the business and customer environment.
Situation analysis is a set of several analyses like the 5Cs analysis, Porter`s five forces
analysis, SWOT analysis etc. We already done with SWOT analysis and Porters five forces
analysis will be given in the later chapter. The 5Cs analysis is the main focus of this chapter.
BRAND POSITION OF WALTON
Stages ofindustry maturity
Embryonic Growth Mature Aging
Dominant
Strong Walton Group
Favourable
Tenable
Weak
Figure 3: Brand position.
Market Analysis
Bangladesh, with its developing populace and financial development, has tremendous
interest for family unit items. The way that exclusive around 60% of the nation has power
accessible demonstrates that when power will be accessible all through the country, interest
will augment further. As the general population of this nation is for the most part value delicate,
Walton, being the sole producer of the fridge, cooler etc.; is extremely quick to take care of the
CompetitivePosition

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demand of this expansive business sector by giving aggressive costs. Walton's essential
objective is to catch the nearby market, as they are still behind business sector pioneer LG-
Butterfly. Be that as it may, they are additionally trading their items. As of now they have
clients in Myanmar, Bhutan and wanting to grow their business sector to Africa.
5Cs ANALYSIS
Figure 4: 5C analysis
Elaboration of the following figure is given in the next page regarding Walton Group.
Company
• Objective
• Position
• Performance
• Product line
Competitors
• identify a competitor.
• Assessment of
competitor.
• Predict futurenitiatives
of competitor.
Customers
• Demographis,advertisi
ng& market size.
• Customer wants and
needs as well as
potential growthof
company.
• Distribution channel
andincome level of
customers.
collaborators
• Agencies
• Suppliers
• Distributors
• Partnership
Climate
• Political and regulatory
environment.
• Economic environment
• Socio-cultural
environment
• Technological analysis.

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Figure 5: 5Cs analysis of Walton Group.
Company
(Walton
Group)
Objective
1.Receivce an
economic return
on investment
&
2.Contributeto
the economic
growth and
development of
Bangladesh.
The position
of walton
group is strong
and its in
growth stage
regarding
industry
maturity.
Performance(
How
efficiently
Walton
acheive its
goals)
1.The export
percentage of
Walton is
91¬1000 %.
2.The total
market share
of walton is
35% and
rising
3.Most of the
products are
Bangladeshi.
Product line
1. Walton
cureent
product line is
above 10 .
Competitors
Identifiable
Competitors.
1.LG,Transtec,
Sharp,Mycell,
Samsung,Hero
honda,Bajaj.
Assessment of
competitor
1.Some
country own
company like
mycell or
some foreign
elctronics
compnay luke
sSamsung or
Sharp put a
controversial
effect on
Walton`s
current
businness
strategies.But
the foreign
companies
continuously
face a huge
challenge from
local
companies.
Future
initiatives
means what
effect can be
posed by
competitor on
Walton Group.
Customers
The customer
analysis is vast
and
complicated
and the
potential
growth curve
also important.
Walton is a
MNC so the
advertising
program
Walton would
choose have to
be sconsistent
with
demographic
or geographic
installation.
Collaborators
Collaborators can
increase ideas and
increase th e
likelihood of
positive revenue.
Agencies:When
Walton`s manager
identify a problem
of the need of new
experienced people
they can call
recruitement
agencies.
a.Agencies are
some type of
middleman in
every organization.
Suppliers: Walton
got suppliers from
country and
foreign country as
well.Suppliers
provide raw
materials which is
needed for
manufacture .
There are 7 types
of suppliers
regarding Walton
and they are
:Wholesalers,manu
facturerrs,franchiso
rs,merchants,expor
tes,importers,drop
shippers and
independant craft
people.
Distributors:Walto
n`s distributors are
very important
because of the
external
Bangladeshi
businness
envirronment,wher
e it is difficult to
reach products on
time.
1.Distributos can
help building better
trading
relationships.
Parnership: Walton
is a sister concern
of R.B Group as
well as allied with
many foreign
alliances and
subsidiaries.
Climate
The political
condition is
varying but it
less likely to
affect the
appliances
industry. But
sometimes
after or before
election
mostly every
organization
pass through
economic
turmoil in
Bangladesh.
Economic
recession in
Bangladesh
isn’t that
distinct.
The social
communicatio
n or promotion
effort from
Walton is
increased and
it`s getting
popular.
Technology
is changing
rapidly, even
in a
developing
country like
Bangladesh,
and all
technology
related
organization
including
Walton
adapted to this
situation.

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PEST Analysis (Climatic factor of 5C analysis)
Political Factors Economic Factors Socio-cultural
Factors
Technological
Factors
Stable Government
Support
Increase in Spending
Power
Changing lifestyle of
the mid-income
group
New instruments and
related low-cost
interventions.
High Import Duty on
Imported Home
Appliance Product
Increase in per capita
income
Manufacturing
products for social
well-being.
Faster manufacturing
and production
processes.
Send out
advancement plans
of Bangladesh
government and
charge Incentives on
Import of Plants
Increase in Spending
Power
Creativity Olympiad,
Student science
search in various
schools, education
funding 7 operating
as a friendly
neighbour are some
characteristics of
Walton Group.
More
communication with
consumers and eco-
friendly operations
and successful use of
CRM in management
for customer
satisfaction and
consumer, supplier
data collection.
Figure 6: PEST analysis of Walton Group.

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CHAPTER FOUR
Market attractiveness

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3.1 MARKET ATTRACTIVENESS OF WALTON GROUP.
In This segment, we are going to discuss the competitiveness of the current
marketplace of Walton group
Figure 7: Porter`s Five Forces model.
The present market condition in Bangladesh is dynamic and the customers want more
than products from companies. They want services, more information, a suitable combination
of product and price with their income, longer after sales services and much more. Those
aspects enhance the marketplace in many ways. Let’s take a look at how competitive Walton`s
marketplace is.
Rivalry
among
existing
firms.
Threat of
new
entrants.
Burgaining power
of sellers aswell.
Number of
substitutes.
Bargaining power
of buyes.

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Figure 8: Elaboration of five forces model regarding Walton.
Together this four forces shows us the current condition faces by Walton Group.
Although the number of substitutes is higher Walton`s products and services but they are
quality products. this is possible because they arrange their imported goods justified in a
•In appliances industry diseconomies of scales is seen .That
means walton cannot produce outputs with lowest unit cost
possible.Walton imports raw materials and some cearamics
related producs,but soon this condition will be surpassed.
•Threat of new entrants is moderate becaause Walton Group has
•a.Significant brand identity &
•b.Significant propietary product differences.(explanation
below)
Threat of new
entrants.
(MODERATE)
•Bargaining power of customers is high because they can switch
to close competitors ( LG,Butterfly) conveniently.& with no
cost.
•Today`s buyers are more sensitive on the combination of
products and prices as well as the details of products(most in
case of appliances and electronics).This tendency increases the
baraging power of buyers higher.
Bargaining power of
buyers.
(HIGH)
•Walton Group imports most of their raw materials and
elctronics parts from China where the production cost is low
and the differences among products arre also low.This
decreases the bargaining power of suppliers.
Bargaining power of
suppliers.
(MODERATELY LOW)
•Walton`s most products are appliances and now in Bangladesh
there are some soob amount of company available to satisfy
customers.Examples include LG,Butterfly,Marcell etc.
•The relative price among walton and various close competitor
isnn`t highly distinct &
•Brand switching cost for customers is lower.
Number of
substitutes.(HIGH)

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country and assemble them properly. The proper combination of products/services and prices
is also present for most of the time. Although different competitors are still advances in the
industry, Walton is catching up fast. As a first country group in appliances and automobile
industry, Walton is doing great.

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CHAPTER FIVE
Strategic Application

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Growth Strategy
Top-notch corporation Walton follows concentration growth strategy through which it wants
to increase the number of products offered or markets served. This will help it to gain more
market share by selling more products. It will also be able to gain huge economies of scale
which will lead to reducing its production cost and make it more competitive in the market.
Walton follows three types of concentration strategies: -
 Market penetration- This strategy is to sell more products in the same market. Walton
can do this by increasing advertisement which would boost demand for its products and
increase sales.
 Market development- This strategy is to sell same products to new markets. Walton
can select those new markets where growth rate is high, so that sales tend to be high.
 Product development- This strategy is to sell new products to the same market. Walton
can improve or modify its present products to increase market penetration within
existing customers.
All these strategies are undertaken by Walton in order to increase sales, increase market share
and be more competitive.
Advantages of concentration strategy: -

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1. It needs to analyze needs and wants of only one segment and then focus all its efforts
on that segment.
2. The concentration of resources which helps to reduce costs.
3. By undertaking the concentration strategies, it will be able to gain the strong position
in the market.
Disadvantages of concentration strategy: -
1. As the company has focused all its efforts on one segment, so if demand falls then its
financial position will also decline.
2. Activities in few locations may lead to higher transportation cost.
3. If there is a significant change in the industry, it can be hard to deal with.
Competitive strategy
Walton’s competitive strategy is cost leadership strategy which means it produces and
provides a better quality product or services to its customers at a lower cost than its competitors
do. This makes it more competitive in the market. Through this strategy, Walton needs to be
highly efficient and do anything to reduce its costs and keep its overhead at a minimum.
To ensure cost leadership Walton needs to acquire some strategies: -
 It needs to find cheaper raw materials to keep production costs lower than competitors.
 Walton needs to ensure that it enjoys high economies of scale, so that its average costs
are lower.
 In order to make costs as low as possible, Walton should make sure that its
transportation costs are low.
 It also needs highly trained workers, so that they can work efficiently to reduce
wastages and costs.
All these strategies will help Walton to maintain a strong cost leadership and gain high
competitiveness in the market.

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Advantages of cost leadership strategy: -
1. Walton will be less affected if the market price falls because it is already selling at
a lower price.
2. As it has cost advantage so it will be protected from its competitor’s firms.
3. Due to low cost, it can sell goods at a cheaper price which will help to increase
sales.
4. Walton’s low price will be a strong barrier against new entrants.
Disadvantages of cost leadership strategy: -
1. Competitors may also undertake cost leadership strategy and lower their price
level.
2. As Walton will charge a lower price, demand may not rise as customers may think
product quality is poor.
3. Walton will not be able to give promotional discounts as it already provides goods
and services at a very low price.
4. Selling at lower prices means profit levels are low, so reducing costs may not
benefit Walton.

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CHAPTER SIX
Different Management Issues Faced by Walton Group.

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6.1.1 CHANGING ORGANIZATIONAL STRUCTURE
At first Walton group`s structure was simple structure supported by the then market
condition like the demand from customers etc. But with time Walton`s organizational culture
become so sophisticated.
Figure 9: Organizational Structure of Walton Group now.
6.1.2 CHALLENGE OF MORE DYNAMIC ENVIRONMENT
Walton Group is now in a new era of development. In this modern age, this group has
to face lots of challenges like….
a. Serving more customers & maintaining a balanced supplier-buyer relationship.
b. Minimizing production cost & finding more country side raw materials
c. Establishing innovative and synchronized customer relationship management
program in order to serve better to customers of different needs and wants.
Gener al
Manager
Design
Center IT Dir ector
Mar keting
Dir ector
Ex per t
Depar tment
Factor y
Dir ector
Pr oduction
Center Planning
Technical
Activities
HR
Depar tment
Admin
Depar tment
Financial
Depar tment
Inter nal
Audit Team

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d. Attracting and maintaining new talents & distributing more team based work
activities and take one step ahead for making the organization more flexible.
e. Finding the right person for the right job.
And a lot more
6.1.3 NEW AND REDEFINED E-BUSINESS STRATEGIES:
Walton`s e-business strategies yet not so sophisticated. Sending the product, service or
software’s via some smart or convenient ways like `Paribahan Distribution`, e-mail aren’t
distinct.
6.1.4 INCREASING DIVERSITY
The managers of Walton group face more diversity in their workplace as the
multinational company being global continuously.
6.1.5 TERMS RELATED TO COMPETITIVE ADVANTAGE.
As being the first multinational company in Bangladesh, Walton group can use the
resources available in the country better than any other competitors and produce at low cost
with efficient effort.
6.1.6 MORE CUSTOMER ORIENTED VIEW
At the beginning, in 1978, Walton`s activities were product oriented. Gradually this
view on product changes from more quality products and better customer relationship as well.

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6.1.7 A FLEXIBLE QUARTER FOR SMARTPHONES.
Mobile phone industry is excellent in
Bangladesh with 133.2 million mobile network
subscription,10 million+ smartphones and an
outstanding 232% 3G growth rate guided by 6 powerful
mobile operators.
Walton`s journey to phone making was old and boring
Source: Dhaka Tribune & light castlebd.com but with the introduction of the first android based
smartphone `Primo` and later with innovative, colorful and quality smartphones `Primo
Series`; today Walton has 12% market share in smartphone industry regarding Bangladesh`s
capital. Tech giant Samsung or other foreign smartphone builders are now in the great
challenge before some local companies like Symphony, Walton etc.
This creative turn of Walton Group to smartphone industry has a capability
of revenue or more specifically profit building. Keeping up with this improvement and
maintaining the improvement is a great management issue for Walton Group.

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6.1.8 COLD MANAGEMENT ‼‼
Refrigeratorassemblingin Walton HIL factory Figure 10: Data representing locally made and imported fridge ratio, the percentage per fiscal
year.
The local companies can sufficiently produce refrigerators or fridges and as we can see
the percentage is mind blowing 77.73%. Walton is the pioneer and leader in country made
refrigerator industry and this aspect is another major management concern.
Here are some other management issues faced by Walton Group.
i. The technological investment increased and as a result more technical experts
assigned. Their managers are technology experts as well.
ii. Walton Group invests a lot on internal audit team which is cross-functional.
That means their job isn`t only on financial department rather it’s on all
department for ensuring organizational ethics.
Fiscal
Year
Imported
Fridge
Local
Made
Fridge
Total
Market
Raise/Down
rate
2010-
11
72.29% 27.71% 7.97 lakh 12.3%
2011-
12
49.25% 50.75% 7.53 lakh - 5.5%
2012-
13
39.16% 60.84% 8.11 lakh 7.6%
2013-
14
22.27% 77.73% 10.77 lakh 32.9%

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iii. For controlling customer interactions, a sophisticated two-way communication
program implemented in various customer care centre in Bangladesh by. As
from our data collection, one of our findings was customers are not that much
satisfied with Walton`s customer service.
iv. For a very long time, Walton sponsored our beloved game cricket and this type
of sponsoring is another passive decisional result of management department,
implemented by the marketing department.
v. Walton`s employees are proactive and helpful. That means a balanced work
time combination is created by the managers.
vi. Walton Group is considered as MNC now and their managers successfully
reflect this characteristic by controlling the global team well.

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CHAPTER SEVEN
Findings & Conclusion

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Since the opening of business, Walton’s innovation is always dedicated to the
advancement of society & country and till now it continues with more dedication. This avant-
garde, experimental technology-based corporation has redefined the way for local competitors.
The design of the products is a reflection of modern lifestyle combined with local antiquity.
The capability of meeting customer satisfaction consistently with innovative products as well
as keeping an eye on tomorrow was never easy for any company but with proud, we can say
that one of our local players can do that.
Only some years ago, Walton wasn`t much known to customers due to the lack of
proper promotional effort but now the promotional effort is very decorative. The departments
are gradually integrated and the workforce is continuously augmented. The customer services
and after sales customer services are best among local competitors. More than 57 state-of-the-
art after sales service points along with an ISO certified central service points enriched
Walton’s customer care system. Over 21000 direct and indirect employees are working hard to
reach the topmost level as an organization.
Now Walton is also another name of rectitude, loyalty, probity and sincerity. It is one
of the best tax payers in Bangladesh. It has been maintaining 100% compliances during
decades. It got several awards for minimizing the production cost and perpetuating eco-friendly
environment. Here’re some noteworthy pride of Walton listed below…….
a. Six times 1st
prize for Highest VAT Payer, DITF
b. The Golden Globe Tiger Summit Award,2015(Category:Excellence & Leadership Brand)
c.Asia`s best Employer Brand Award,2015
d.Global Brand Excellence Award,2014

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e. DHL-Daily Start Bangladesh 15th Business Award 2014 forBest Enterprise in Bangladesh.
Some International Certificates of Walton
Registration Certificate ISO-9001 for manufacture and sales ISO 14001: 2004 For the sales
OHSAS 18001:2007 Registration Certificate of Refrigerators & Air Conditioner division. andmanufactureof Air-
Conditioner and refrigerator.
(Information collected from official website)
“In criticism, I will be bold, and as sternly, absolutely just with friend and foe. From this purpose
nothing shall turn me.”
― Edgar Allan Poe
Positive criticism about any organization will help them to find out important
gaps and recover them. Here’re our small recommendations about how Walton
as an organization can perform better.
A wide area in Bangladesh is still unserved. Walton has to be aggressive
to cover the wide areas as well as make profit.

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Brand image is very important and the brand image of Walton is fair. In
orderto capturemore market share, it has to build strong brand image along
with sophisticated technology pillared by decorative, sustainable and
quality products.
Proper diversity management and more smoothed R&D department will
play an important role in its growth.
The number ofshowrooms should beincreased and the installations should
be properly integrated for better access to customer information.
The channel of distribution should be strengthened because it will save
time and operational costwill decline.
Walton should pursue the investment in innovation and technology
because their base is technological.
Finding out more skilled professionals from other diverse industries is
another major issues because this type of employees can provide a box of
ideas related to their sector like interior design, waste management etc.
This will help Walton to make its brand image.
Walton should sponsormore educational and sporting events.
One important change should be made to the logo and theme of Walton.
Fordecades we haven`t seen any changes so far. Attractive logo and theme
will help the company to attract more customers.

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Walton can take more private firms help to find out important information
about other competitors (Business Intelligence).
The internal information database should be updated sync chronologically
and simultaneously.
Here`s some recommendations for managers.
They should take the positive ideas and plop the negative parts of the
ideas in one portion of their thought.
Offering more people structured freedom results in low turnover rate.
Managers should consider this.
They should help the employees to build their positive identities and
trimmed the strength out of the employees.
And of course, While the operate for Walton, if they detect any
sophistical problem or discrepancy, they should decipher the
predicament or problem.

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Main Sources
A. Management, twelfth edition
Authors: Stephen P.Robbins & Mary Coulter
B. Wikipedia
https://en.wikipedia.org/wiki/Walton_Group
C. Slideshare.net
Project Name: Marketing Strategy of Waton LTD.
http://www.slideshare.net/nahiduzzaman/walton-clasic
D. Academia.edu
Project Name: Walton Bangladesh
Uploaded By: Anika Khursid.
http://www.academia.edu/5923767/Walton_Bangladesh
E. Walton Official Website
http://www.waltonbd.com/index.php?route=common/home

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References
a. Academia n.d , Walton Bangladesh,viewed 20 July 2016, from
http://www.academia.edu/5923767/Walton_Bangladesh
b. Husain, I, 2016, `Smartphone users onthe rise`, viewed 20 July 2016, from
http://archive.dhakatribune.com//business/2016/jan/24/smartphone-users-
rise
c. Slideshare n.d, Executive summaryaboutwalton company, Viwed 21 July
2016,from
http://www.slideshare.net/seyam2/executive-summary-about-walton-
company
d. Slideshare n.d, Walton Classic, viewed 21 July 2016, from
http://www.slideshare.net/nahiduzzaman/walton-clasic
e. Blablawriting n.d, Walton Bangladesh, viewed 21 July 2016, from
http://blablawriting.com/walton-bangladesh-essay
f. Slideshare n.d, Walton, viewed 21 July 2016,from
http://www.slideshare.net/NabilNassif/walton-43490494
g. Wikipedia n.d, Walton Hi-Tech Industries Limited, viewed 22 July 2016, from
https://en.wikipedia.org/wiki/Walton_Hi-Tech_Industries_Limited

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h. Motorcyclevally n.d, Market Share of Motorcycle Brands in Bangladesh,
viewed 22 July 2016, from
http://www.motorcyclevalley.com/news/market-shares-of-motorcycle-
brands-in-bangladesh/
i. Ovi, I, Hossain, 2015, `Bike makers eye 50% local market share in 3 years`,
Viewed 23 July 2016, from
http://archive.dhakatribune.com/business/2015/jun/13/bike-makers-eye-
50-local-market-share-3-years
j. Assignmentpoint n.d, Internship Reporton SalesPerformanceof RB group
Walton, viewed 23 July 2016, from
http://www.assignmentpoint.com/business/marketing-
business/internship-report-sales-performance-rb-group-walton.html
k. Assignmentpoint n.d, Report on Future Prospects of Walton, viewed 24
July 2016, from
http://www.assignmentpoint.com/business/marketing-business/report-on-
future-prospects-of-walton.html
l. Assignmentpoint n.d, Internship Report on the Market Position of Walton,
viewed 24 July 2016,from
http://www.assignmentpoint.com/business/internship-report-on-the-market-position-of-
walton.html

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m. Saaifk n.d, SWOT Analysis of Walton BD, viewed 24 July 2016, from
https://saaifk.wordpress.com/2014/06/11/swot-analysis-of-walton-bd/
n. Walton Official Homepage, viewed 25 July 2016, from
1. http://www.waltonbd.com/index.php?route=common/home
2. http://www.waltonbd.com/?route=information/information&informati
on_id=4
on_id=9
on_id=13
5. http://www.waltonbd.com/?route=pavblog/category&id=77
Some additional information is also taken from Financial Times and Forbes
websites.

Walton Bangladesh

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