Chapter 1

Background of the Beverage Industry of Bangladesh

Beverages have a massive market in Bangladesh because of the huge population density derived

demand.After independence the food habit of Bangladeshi people has been changed a lot.

Besides our traditional food consumer of Bangladesh like to take western food also after 1980s.

As a result of global marketing this was not too hard for the consumers. Different foreign food

companies were established in Bangladesh. Beverage industry is one of them. But more

interestingly we don’t know beverage is also our cultural food because beverage doesn’t mean

only carbonated drinks. Yoghurt, soup and lacchi are also beverage of our own tradition which

consumed for the last 100 years in Bangladesh. But carbonated beverage is new in Bangladesh.

Carbonated beverage entered into our market in the later part of 1980. At that time there were

only few companies in Bangladesh. But by the change of time and western culture influences it’s

become very popular in Bangladesh. By year 2000 more than 12 Beverage Company operating

business in Bangladesh and most of them are foreign companies. (Bangladesh Beverage: 2006)

The Beverage market in Bangladesh consists mainly of seven companies. Of these, Pran and

Mojo are the only local brands. Coca-Cola, with its three varieties, namely, the cola-flavored

Coca-Cola, the clear-flavored Sprite and the orange-flavored Fanta, is the number one soft drink

producer in Bangladesh, as well as all over the world. Closing in on Coke is rival Pepsi. Pepsi is

one of the oldest brands in Bangladesh. Pepsi first arrived in Dhaka in 1976 with the cola-

flavored Pepsi, the clear-flavored 7up, the orange-flavored Mirinda and later introduced the

mango-flavored Slice. Pran, on the other hand, started with jam, jelly and pickle. In 1995, it

started producing mango bottled juice, and is currently operating all over the country. Virgin is

renowned worldwide through its brand name. It was introduced in our country by Global

Beverages Ltd. RC Cola entered the Bangladesh market in 1997, and was the first to introduce

the cloudy lemon flavor. It has not been long since Akij group brought out Mojo and Lemu.

They have already gained huge popularity.

1

At present Bangladesh has a very competitive market of beverage. Bangladesh has a relatively

hot weather and people tend to be thirstier. So they prefer to take soft drinks most of the time.

Beverage took the market of Bangladesh in the first half of 1980. In that time two or three soft

drinks were available in the market. But now lots of beverage found in the market. Some of them

are popular and some are not so popular.

List of beverage industry in Bangladesh

No Name of manufacturer Brand Year of establishment

Total workforceOf the group

1 Abdul Monem Limited Coca-Cola, Sprite, Fanta

1982 6000+

2 Agriculture Marketing Company Limited Pran 17 March 1981 30,000

3 Akij Group Mojo, Lemu,Frutica 2000 32,000

4 Global Beverage Limited Virgin 1999 n/f

5 Globe Soft Drinks Limited Uro cola Uro Loemon

2002 n/f

6 Partex Beverage Limited RC Cola, Lychena 6th October 1997

10,000+

7 Transcom Beverage Pepsi, 7up, Mirinda 1976 8000+

Source: various (*n/f=not found)

2

Chapter 2

The Journey of Transcom Bangladesh Limited

Transcom originated with tea plantations in 1885 and is today one of the leading and fastest

growing diversified business houses in Bangladesh employing over 5000 people. Not many

industrial groups in Bangladesh can claim a history of continuous business pursuits stretching

over 100 years. Initially, tea and later jute formed the backbone of the family business. Although

these are still part of the activities, they contribute marginally to the overall group turnover.

These early industrial ventures have moved over to businesses involved in high-tech

manufacturing, international trading and distribution, forming strong ties with a host of blue chip

multinational companies. In recent years, Transcom has emerged as an increasingly significant

media house in Bangladesh. This is the flagship and holding company of the Transcom

enterprises. Transcom Limited is the flagship and holding company of the Transcom enterprises.

Since the beginning of its journey it has been very successful at whatever area it ventured into.

All of its SBUs be it beverage industry or electronics industry or any other Transcom has always

tried to maintain highest standard. Two highest circulated news papers The daily Star and

Prothom Alo both are best news papers in Bangladesh are owned by Transcom Group. Samsung

hand sets which has become very successful for its smart phones is a part of Transcom Mobile

Ltd . Eskayef Bangladesh Limited (leading pharmaceutical manufacturer – formerly SmithKline

& French SK&F) which is another renowned brand in Bangladesh and it also a SBU (startigic

business unit ) of Transcom group. Transcom food is the sole franchise of KFC and Pizza Hut

both of which are highly successful brands worldwide and also in Bangaldesh. Highest sold soft

drinks in Banglsdeh Pepsi,7 up, Slice are beverage product of Transcom Bevrage Ltd.

Transcom’s latest incorporation is Aquafina bottle water in 2014 which is a very reknownede

product of PepsiCo .the success story of Transcom group goes on and on .within the last 150

years it has evolved into one of the best business conglomerate in Bangladesh.

(http://biac.org.bd)

3

Transcom Today

These early industrial ventures have moved over to businesses involved in high-tech

manufacturing, international trading and distribution, forming strong ties with a host of blue chip

multinational companies. In recent years Transcom has emerged as an increasingly significant

media house in Bangladesh. TRANSCOM is now dealing with several other companies located

in the overseas countries. Day by day the organization is expanding.

1. Distribution: Transcom distribution Co. Ltd. Beverage Distribution Ltd. Transcom Electronics Ltd. Philips Lighting. Transfin Finding 2nd

Trinco Ltd. Tea Holdings Ltd

2. Manufacturing: Bangladesh Electrical Industries Ltd. Bangladesh Lamps Ltd. Transcom Beverage Ltd. Eskayef Bangladesh Ltd.

3. Media : ProthomAlo Daily Star Anandadhara Saptaik 2000 Transcraft Ltd.

4. Tea : M. Rahman Tea Co. MonipurTrea Co. Ltd. Marine Tea Co. Ltd. Heritage Tea

5. Associates: W. Rahman Jute Mills Ltd. Reliance Insurance Ltd. Media World Ltd.

(source:edupedia.educarnival.com)

4

Transcom Beverage Limited

On the basis of an exclusive Franchise for Bangladesh from Pepsico USA, TBL acquired three

modern bottling plants at Dhaka, Chittagong and Bogra from BBIL, Dhaka; EBIL, Chittagong

and NBIL, Bogra; in March 2000. TBL manufactures the famous Pepsi range of beverages-

Pepsi, 7up, Mirinda Orange, Mirinda Lemon, Slice and Soda. As a corporate citizen Pepsico

believes it has a responsibility to contribute to the quality of life in our communities. TBL has

put into action this philosophy through support of social agencies, projects and programs and the

scope of this support is extensive and it has not been difficult to blend with this philosophy since

the TRANSCOM group also followed such a corporate ideology. The main factory of Transcom

Beverage is located in Telichara, Mouchak, Kaliakair, Gazipur. They also have two regional

factories in Chittagong and Bagura.

Products of Transcom Beverage Limited

But the main two products of Transcom Beverage Limited are 7 up and Pepsi. Though there are three other supporting products (Mirinda, Slice and Soda) added later. (History of Transcom: 2008).

5

Step 03Central issues of Transcom beverage ltd

Motto of Transcom beverage ltd :

Motto OF Transcom beverage ltd to deliver sustained growth in Bangladesh and move towards

dominant Beverage Company, delighting & nourishing every Bangladeshi, by best meeting their

everyday beverages needs & stakeholders by delivering performance with purpose, through

talented people.(www.transcombd.com)

Since TBL is a franchise company of PepsiCo. Transcom Beverage Ltd follows the same

mission vision as PepsiCo.

Mission:

Its mission is to be the world's premier consumer products company focused on convenient foods

and beverages. We seek to produce financial rewards to investors as we provide opportunities for

growth and enrichment to our employees, our business partners and the communities in which

we operate. And in everything we do, we strive for honesty, fairness and integrity.

Vision:

PepsiCo's responsibility is to continually improve all aspects of the world in which we operate -

environment, social, economic - creating a better tomorrow than today..

(www.pepsico.com)

6

Different slogan and tag line used by TBL products

Beverage name Slogan/tagline Logo

Pepesi cola “Yea Dil Mange More Aha ………………….”

7 up “mon bole I feel up”

Mirinda Ahhaaaaaaaaaaaaaaaaa

Mirinda lemon “Zor Ka Zahka Dhirasa Lagi”

Slice Simple Joy ka Raas

Mountain dew 'Darr ke aagey jeet hai'

Aquafina Pure Water. Perfect Taste

7

Business policy of Transcom beverage Ltd:

Transcom beverage Ltd is the exclusive PepsiCo Franchisee for Bangladesh. A franchisee ship is

an agreement or license between two legally independent parties or companies .Pepsi first

arrived in Dhaka in 1976 with the cola-flavored Pepsi, the clear-flavored 7up, the orange-

flavored Mirinda and later introduced the mango-flavored Slice finally Aquafina . Pepsi which was already a

very established brand worldwide captured the Bangladeshi market very quickly after being introduced.

As a franchisee company TBL has to abide by all the rules and regulations set by PepsiCo. Transcom beverage

has the right to use pepsico’s brand name, take technical support, financial support, if needed PepsiCo also trains

TBL employees for mastering new techniques .TBL is obligated to comply with complete method set by

PepsiCo to conduct its business, such as the marketing plan. In return TBL has to pay certain amount of

fees and royalties to its franchisor. All rights of both parties are legally protected and in case of any incompliance

franchisor has the right to cancel agreement with franchisee. (www.franchise.org)

Marketing strategy of Transcom Beverage Ltd:

TBL mostly rely on PepsiCo for marketing their products.TBL undertakes many kinds of

marketing activities for its products. Advertising, promoting, packaging, sponsoring and many

other activities are part of marketing.

Pepsi products are advertised and promoted all over the world and its marketing strategies and

advertisings vary based on different countries, regions, and cultures. Billions of dollars is being

spent for advertising pepsi products every year. In Bangladesh TBL (Transcom Beverage Ltd)

advertises its products through different broad cast media like Tv, radio, internet, print media

like news paper, magazine, billboard etc.TBL also undertakes different kind of promotional

activities reduction of price, different kind of quiz competitions organized by TBL. It also

sponsors different kind games , events, concerts etc all of which are part of Transcom’s

marketing strategy.

Its target customers are normally young people aged between 10 to 35. Apart from these low

price, attractive packaging, diverse product offerings are also part of TBL marketing strategy.

8

Production strategy of Transcom Beverage Ltd. (TBL)

Production strategies are long-term action plans of the organization, for the production of goods

and services. It includes the investments to be made, the goods and services to be produced,

technology to be used, and schedule to be followed. (http://kalyan-city.blogspot.com)

For producing TBL products three production plants have been established in Dhaka,

Chittagong, and Bogra. For smooth distribution it has divided the whole Bangladeh into three

different regions. There are hundreds of distributors of TBL who distribute its product all over

Bangaldesh. Production of its products are conducted in four phases first step bottle processing

and production then comes syrup production then syrup processing finally bottling the final

product. Since the demand of TBL products varies based on different seasons and occasions

(Eid, puja,etc) the number of units would be produced is determined based on order placed by

distributors. If too many numbers of products are produced and they are needed to be stocked in

warehouses that would increase production cost and if the number of units produced is few then

TBL would lose valuable customers.

Figure: production and distribution strategy.

9

Chapter 4The HRM Practices and Strategy

Recruitment

Recruitment refers to the process of attracting, screening, and selecting qualified people for a

job. For some components of the recruitment process, mid- and large-size organizations often

retain professional recruiters or outsource some of the process to recruitment agencies.

The recruitment industry has four main types of agencies: employment agencies, recruitment

websites and job search engines, "headhunters" for executive and professional recruitment, and

niche agencies which specialize in a particular area of staffing. Some organizations use employer

branding strategy and in-house recruitment instead of agencies. Recruitment-related functions

are generally carried out by an organization's human resources staff.

The stages in recruitment include sourcing candidates by advertising or other methods, screening

potential candidates using tests and/or interviews, selecting candidates based the results of the

tests and/or interviews, and on-boarding to ensure the candidate is able to fulfill their new role

effectively. (Smith)

The Recruitment Process

Recruitment process is a crucial thing in every organization. Transcom Beverage Limited

follows few steps to select candidates to have them in the organization. For recruiting candidates

for the selected position the company posts advertise in newspapers, websites (For example-

Prothom alo jobs, Bdjobs.com) etc. HR department collect applications externally by this way.

Internal recruitment sometimes encouraged by the authority. Walk-in interviews also being

encouraged to fulfill the vacancies. After getting the CV’s of the candidates, the HR recruitment

department short list few candidates if they fulfill the requirements of the organization’s position.

Then for below manager level position the applicants have to sit for the written test and if they

qualify the exam, HRD asks for the oral test of the candidates. In the interview session

interviewer asks questions to the interviewee according to the position. Formed questions,

relevant questions and irrelevant questions are basic question pattern in the interview. HR head

and other departments head take the interview of the candidates. For example: if the organization

10

look for finance executive then head of finance will also be there to conduct the interview. Then

the candidates have been chosen by the merit list. Finally, the interview panel negotiates about

the remuneration with the candidates and selects the right person for the right position.

Diagram of recruitment and selection process of Transcom Beverages Limited is given below:

Figure: Recruitment and selection process of Transcom Beverage Limited

11

RecruitmentSpecification and job advertisement

1st Selection round:Written testAssessmentShort list

Final selectionRound:Job offerAcceptance

2nd selection round:InterviewReferenceCheck

Pre-selection round:CV screeningLong-list

HiringAnd induction

Job Analysis

Job analysis is another important part of recruitment and selection process. Job analysis means

the process of determining job duties of these positions and the characteristics of the people to

hire for them. Job analysis consists of two parts.

a. Job description

b. Job specification

Job description

Few jobription criteria of Transcom Beverage Limited are given below:

Transcom Beverages Ltd

Address : 10th Floor, Gulshan Tower, Plot # 31, Road # 53, Gulshan Northe C/A Web : www.transcombd.com Business : Transcom Beverages Limited, the franchisee of Pepsi, 7up, Mirinda, Slice, Mountain Dew and Teem for Bangladesh is looking for dynamic and competent professionals to fill the following positions. The Company provides competitive remuneration, excellent job environment for career growth of individuals and practices a performance culture, where talent and creativity are recognized and rewarded.

Position : Assistant Engineer/Engineer (Mechanical)

Area: Chittagong | Category: Engineer/Architects

Job Description/ Responsibility:

Design, implement, maintain, and improve instrument, equipment, facilities, components, products and system for commercial, industrial, and domestic purposes

Operate computer assisted engineering and design software and equipment to perform engineering tasks

Supervise and coordinate manufacturing, installation, maintenance, support, documentation and testing activities to ensure compliance with specifications, codes and customer requirements

Inspect completed installations and observe operation to ensure conformance to design and equipment specifications and compliance with operational and safety standards

Perform detailed calculations to compute and establish manufacturing, construction and installation standards and specifications

Oversee project production efforts to assure projects are completed satisfactorily on time and within budget

Job Nature: Full Time

(www.jobsctg.com)12

Job Specification

A list of a Job’s ‘human requirements’, which is the requisite educational skills, personality, and

so on- another product of a job analysis.

EDUCATIONAL REQUIREMENTS B. Sc (Mechanical) from recognized University/BIT

EXPERIENCE REQUIREMENTS

Min Experience: 2 Years Max Experience: 3 Years

REQUIREMENTS

Must have good and pleasant interpersonal skills and leadership qualities to lead his team in a factory environment

Computer literacy (MS Office) must.

ADDTIONAL REQUIREMENTS

Age range 25 years to 30 years Job level: Entry Level job

(www.jobsctg.com)

13

Promotion Practices

Transcom Beverage limited practices promotion in their organization. Every employee of the

organization has been given target and objectives to fill up in certain times. The company does

not follow any fixed promotion criteria. But if an employee fulfills the targets and objectives

given by the organization for last three consecutive years, then the department head can

recommend the employee for a promotion. Transcom Beverage maintains grading system in the

promotion criteria. For example: officer is the first grade of that company, then executive, senior

executive senior, assistant manager, manager etc. comes consecutively.

Transcom Beverage Limited does not believe in demotion process. This organization always

prefers to give a second chance to an employee. An employee gets target or objective to fill up

when he or she joins the company. If the employee cannot do the job perfectly then the authority

thinks to change the department or discipline of the employee. After that if the employee

performs well then he or she can continue the job.

Training and Development Practices

Training and development practices are the crucial and most important part of Transcom

Beverage Limited. After joining the job every single employee has to go under the training

session for ten days. This orientation process performs in every single department of this

company. Every single employee gets the training session on sales and production system of the

company. For example, who joins in finance department that person has to take training on

marketing, sales, production and finance. In sales department the orientation process can go up to

ten days and in finance department the orientation process goes up to fifteen days. The training

process held from desk to desk after three or four days of the orientation.

Both on the job and off the job training session held in TBL. For off the training TBL follows

role plying, lecture methods, conference and discussion method. According to the need of

training and development the total procedure arrange by TBL. If the department (HR, Finance,

Marketing & Sales) thinks that lecture method can be useful for the job then the department

arrange the training session according to that.14

Figure: HR Paradigm of Transcom Beverages Limited

15

National Culture

Job Analysis

Attracting

Recruiting & Selection Testing & slection Interviewing Candidates

Training & development Performance appraisal management

Orientation/ Induction

Developing

Maintaining

Benefits & services Training & development Ethics, justice & fair treatment

Health & safety

Corporate Cultute HRM Paradigm

Performance Appraisal and Management Practices

Annual performance appraisal from every department is being conducted in Transcom Beverage

Limited. On the basis of performance appraisal reward, bonus, increment etc. are being decided

and within December to January this performance appraisal is being conducted.

Compensation, benefits, pay strategy practices

Reward

At the beginning of the year Transcom Beverage Limited gives target and objectives to the

employees and it basically happens in the sales sector. If an employee performs 90% of the target

then he/she will get a fixed amount as a reward. In case of 100% fulfillment of the target the

employee will get additional salary of one month and if it increases to 110% then the employee

will get some extra award from the authority.

Benefits

Except basic salary the company provides extra benefits to the employee. Monthly the employee

get gross salary which includes house rent, medical allowance, insurance etc. Beside this

employees get two festival bonuses. Another benefit is given to the employee that is WPBF

(Workers profit budget and fund). Group insurance is also covered by the organization as well as

provident fund which is contributory by the employee. Employee contributes 10% of the salary

and the company also provides extra 10%.

Bonus

In every two Eid employees get festival bonus. Managerial level’s employee also get bonus

according to the performance of the company and they get a good amount of money if the

company perform well.

16

Salary & increment

Every year this company offers increment of salary (12% to 20 %) and their average increment is

15%. For the worker Transcom Beverage Limited’s pay scale start from BDT 7000 (basic salary)

and officers’ pay scale start from BDT 14000 (basic salary).

Ethics, Justice, Fair treatment practices

In every day to day activity Transcom Beverage Limited practices transparent ethical treatment.

In the training session they organize ethical training practice conference. This basically

emphasize on the leadership training.

Fair treatment practice is used by this organization. If an employee’s performance become poor

and the organization want to go for the legal action then first of all they give a show cause notice

and the employee have the chance to self-defense. The organization also makes an inquiry team

and gets a report about the employee. According to the report what answers they get based on

that the organization take disciplinary action. This company also maintains fair policy about

sexual harassment. If the case seems to be serious then disciplinary action has been taken and if

it is not that a serious issue then the company goes for counseling of that employee.

Labor relations practices

Transcom Beverage Limited follows 99% of the labor laws. For example, they give four months

maternity leave to the female employees. Every two years trade union leader is elected from the

nomination of CBA leader. Transcom Beverage also follows the safety guidance given by the

Pepsico. and training session has organized by the civil defense and fire brigade every single

year. Transcom also follows the grievance procedure properly.

(N, 2014)

17

Organogram of Transcom Beverage Ltd

(Source: personal interview with GM of TBL)

18

Chapter 5Business achievements / success story of Transcom Beverage Ltd (TBL)

Trancom Group started its journey in 1885 with tea plantation later it involved itself with jute

gradually over the last 125 years it has emerged as a diversified company. Over the years

Transcom Group has ventured into beverage, media, electronics, foods and many other

industries. Now Transcom has partnership with international brands like Pizza Hut, KFC,

PepsiCo and Philips. It has annual turnover of more than $350 million (nearly Tk 2,800 crore),

the group employs over 10,000 people. (Daily Star: 18, 2012)

Transcom Beverage Ltd is one of the most successful SBU of Transcom Group. The beverage

company started its journey with the motto to deliver sustained growth in Bangladesh and move

towards dominant Beverage Company, delighting & nourishing every Bangladeshi, by best

meeting their everyday beverages needs & stakeholders by delivering performance with purpose,

through talented people. (http://www.transcombd.com) .TBL started as a franchise company of

PepsiCo and now producing PepsiCo’s beverage products in 3 production plants in Bangladesh

where state of the art machineries are being used. TBL’s latest incorporation is Aquafina in

April, 2014 in its product category which is a very renowned brand of PepsiCo.

Since the beginning TBL has been very successful it meeting the demand of its consumers and at

the same time employees working here is also considered highly satisfied. Ethics and values

have always been the guiding force of TBL. Due to outstanding performances, high ethical

practices and for maintaining commitment to social responsibility Transcom Group’s chairman

Mr. Latifur Rahman was conferred with prestigious ‘’ Oslo Business for Peace Award’’ in 2012

Products of TBL have been highly successful in Bangladesh. In 2012 7UP won the award for

No.1 soft Drink in Beverage Category by Bangladesh Brand Forum. It has also obtained 9th

place among all the brands in Bangladesh at the same event. Which are testaments of TBL’s

product’s high quality.

In 2011 TBL also received honorable ‘’President Ring of Honor Award’’ from PepsiCo for

outstanding performance and extraordinary sales number in its region. Transcom Beverages 19

Limited (TBL) won ‘International Bottler of the year award’ for the third time in recognition of

the outstanding business results in 2009. The success story of TBL goes on and on like this.

(http://www.transcombd.com)

Chapter 6

Unique HRM strategy and achievements

Transcom beverage unique HRM policy involves those guidelines, which make sure by effective

and efficient HRM policy. They believe in standard of flexible and vibrant and may require

adjustment to different scenarios. Hence its accomplishment will be inspired by sound judgment,

agreement with according to present low. As Transom beverage is operating across the world, it

is important that regulation and practices be appreciated everywhere. The Transcom beverage

Management and Leadership Principles include all the possible ways for stimulating Transcom

beverage employees in their action and in their dealings with others. The Corporate Business

Principles state to all the basic rules, which Transcom beverage approve and subscribes to on a

worldwide basis.They address the following basic human resource issues when putting together

their personnel policies:

Equal Employment Opportunity policies

Employee classifications

Workdays, paydays, and pay advances

Overtime compensation

Meal periods and break periods

Payroll deductions

Vacation policies

Holidays

Sick days and personal leave (for bereavement, jury duty, voting, etc.)

Performance evaluations and salary increases

Performance improvement

Termination policies

20

2009 was imaging year for Transcom Beverage LTD because in this year they win sever award

among this some of national some of international .In addition Transcom beverage limited (LTD)

won the international bottle of the year award for the third time in reorganization of ousting

business awards and 7up won the number 1 soft drink in Beverage category by Bangladesh

brand forum .it has obtained nine place among all brand in the same event .This two

achievementmake them create a unique culture In corporate world more specifically among their

competitors.

Company growth analysis

Transcome beverage limited is vibrant and fast moving. More specifically, the TBL soft rinks

category has been significant growth in the last five years by quality of its relative puerility and

strong consumer demand. At present Transcome beverage growth is $2.4B in the Bangladesh

market and $1.6B internationally. Growth in the energy drink sector for 2009 was 8.7% in the

Bangladesh and 27.8% internationally. This illustrates the size of the opportunity for beverage to

continue increasing their market share in the Bangladesh, expanding their impression

internationally, and entering emerging markets. The recent economic downturn caused a

slowdown in the sale of energy drinks, which are “among the most expensive non-alcoholic

beverages on the market. Sales growth slowed to 10.7% in 2008, following average growth of

46% during 2009-13.However, energy drinks was one of the few beverage

(Placeholder1)categories to experience positive growth during this downturn.

Teens typically consume energy drinks for the taste and the “cool factor,” college students for a

combination of energy and taste (or to mix with alcohol), and young adults for their energy

benefits. Usage of energy drinks among teens is currently around 36%, which is more than twice

that of adults at 15%. Teen girls are nearly as likely to use energy drinks as teen boys, but among

adult women are significantly less likely to drink energy drinks than are men. When it comes to

energy shots, teens are still the consumption leaders. Energy drinks offer busy adults the stamina

to deal with increasingly demanding lives.

21

Margin and Growth Analysis

Last year Transcome beverage has experience positive revenue growth rate amounting 7.9%.

TBL revenue growth over the last two years has been a staggering 26% per year versus 8% for

its competitive group. From a firm valuation perspective, Transcome beverage is trading at 2.5x

revenue and 12.9x EBITDA, which is higher than its competitive group. This is evidence that the

market places a high value on Transcome beverage future growth opportunities. From a

profitability standpoint, Transcome ROA last period was 18.4%, while the median of its

competitive group was 11.8%. From a margin perspective, Hansen’s is in line with its

competition for gross margin, EBITDA margin, and net income margin. The company produces

unlevered free cash flows (FCF) of 8.8% of revenues compared to a median of 10.3% for its

competitive group. B3 Consulting doesn’t see this as a problem because the company has been

making some large capital investments and growing quickly which all contribute to lower

unlevered FCF.

(Financial data collected from Transcom beverage)

Discussion of Transcom beverage ltd’s strength and weakness in a limited scale

Transcome beverage Ltd is leading Soft Drinks Company in Bangladesh. They practice best

human resource that make them unique leader in the market. Also for these reasons they get

some remarkable achievement in 2009.TBL considering 2009 is golden year for transom

beverage. Moreover employee attrition rate in Transcome beverage limited is below five percent,

which clearly indicate that they practice best human resource. However turnover rate in the

marketing department is relatively high .normally who are young fresh graduates just entered in

the job and working in TBL below one year ,they tend leave their job more .this is definitely an

weakness of TBL.

(source :personal interview with NK Bhowmik GM of TBL)

22

Chapter 7Conclusion

As a company that is hundred years old, Trasncom has almost tried all of the strategies there can

be. Transcom Bangladesh Ltd expanded internationally, helped countries’ economical grow,

became environmentally conscious and created joint ventures with other companies which has

enhanced Transcom’s and these companies’ performance by few folds .it has also created job

opportunities for thousand of Bangladeshi workers. Finally it can be said that Transcom has

stood out an idol for other companies, it has immerged as an epitome of quality and standard.

The thing that would make Trasncom successful is that the proper plan of HR department of the

organization through the execution. Some recommendations are as followed-

Transcom Bangladesh Ltd. is quite effective at sourcing the candidates. They follow

almost every ways which lead to find a good class of employees. But, they skipped one

source and that is finding candidates from former employees. They can reduce their

training and orientation cost by recruiting candidates from former employees.

Transcom favors competitive, stimulating and fair remuneration structures offering an

overall competitive and attractive compensation package. Remuneration includes salary,

any variable part of remuneration as well as social, pension and other benefits. Each

operating company will establish a compensation practice taking into account relevant

external compensation levels as well as the requirement of internal fairness. It is

recommended to undertake regular surveys so as to gather relevant information on the

remuneration levels practiced at a local or national level.

Job satisfaction is quite high in Transcom Bangladesh Ltd.’s employees. The main reason

for this is the employees can shift their department quite easily according to their needs

and skills informing it to their immediate supervisor. So, Transcom Bangladesh Ltd. is

being able to keep their employees satisfied.

23

Discussion questions

What are the core products of TBL?

What are the production strategies followed by TBL?

Describe marketing technique of TBL.

What is the mission and vision of TBL?

What is the business policy of TBL?

What is the recruitment process of TBL?

Is there any recruitment tracker maintained?

If yes then how transparent it is?

If no then what measures have been taken to maintain the tracker?

What is the maximum time for the vacant position to be closed?

Does the job responsibilities and job description are clearly defined to the candidates

appearing for selection process?

What types of criteria are being followed by TBL for promotion practices?

What type of training process is followed by TBL?

What  are  the  main  challenges  (topics)  in  your  office  regarding  Training& Development  at  the  moment?

What strategies are followed in TBL for compensation and benefits management?

Do the company pay extra bonus to the employee for outstanding performance?

Do the company have any specific system for the incentive of the employees? What

are they?

Does TBL practice labor relation practice and fair treatment?

Briefly describe the performance appraisal of TBL.

After having the performance appraisal test do the company maintain any follow up?

What are the unique HR strategies practiced by TBL?

What is the yearly financial growth rate of TBL?

What are major HR strength and weakness of TBL?

24

References

(Transcom Beverages Ltd. (2014). Transcom Beverages Limited (TBL) won the

International Bottler of the year award. Retrieved from

http://www.transcombd.com/index.php?

option=com_phocagallery&view=category&id=1%3Abottler-of-the-

year&Itemid=18&lang=en)

(Transcom Beverages Ltd. (2014). 7UP won the award of No.1 Soft Drink in

Beverage Category. Retrieved from http://www.transcombd.com/index.php?

option=com_phocagallery&view=category&id=2%3A7up-no1-softdrink-in-

bangladesh&Itemid=18&lang=en)

(International franchise Association. (2014). what is a Franchise. Retrieved from

http://www.franchise.org//franchiseesecondary.aspx?id=52625 )

(PepsiCo. (2014). Our Mission & Values. Retrieved from

http://www.pepsico.com/Purpose/Our-Mission-and-Values)

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(Kalian city life. (2013). What are Production Strategies. Retrieved from

http://kalyan-city.blogspot.com/2011/12/what-are-production-strategies-

meaning.html)

( N.K. Bhowmik, organizational Organogram and overall HR practice of TBL, April

05,2014)

James, Smith. (2011, August 5). Planning the recruitment process – What you need to

know: Definitions, Best Practices, Benefits and Practical Solutions [Paperback].

Retrieved April 6, 2014, from http://www.amazon.ca/Planning-Recruitment-Process-

Definitions-Practices/dp/1743047940

Jobsctg.com. (2013,December 27). Retrieved April 6, 2014 from

http://www.jobsctg.com/jobdetails.aspx?jobid=883&t=Assistant-Engineer-Engineer-

Mechanical#sthash.LQsvBIPC.dpbs

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