WELCOMEWELCOME

TO

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Apex Adelchi Footwear Apex Adelchi Footwear LimitedLimited

by by --------

History of Apex Adelchi Footwear History of Apex Adelchi Footwear LimitedLimited

APEX” means the peak or the zenith since 1975 we have APEX” means the peak or the zenith since 1975 we have strived to live up to our name. Apex Adelchi Footwear strived to live up to our name. Apex Adelchi Footwear Limited’s Head Office located at Gulshan-1, Dhaka, Limited’s Head Office located at Gulshan-1, Dhaka, Bangladesh and the production plant is located in Bangladesh and the production plant is located in Shafipur, Kaliakoir, Gazipur.Shafipur, Kaliakoir, Gazipur.

Apex Adelchi Limited (AAFL) is a leading manufacturer Apex Adelchi Limited (AAFL) is a leading manufacturer and exporter of leather footwear from Bangladesh to and exporter of leather footwear from Bangladesh to major shoe retailers in Western Europe, North America major shoe retailers in Western Europe, North America and Japan. The company has revenues of USD 119 million and Japan. The company has revenues of USD 119 million in 2012. AAFL pioneered the export of value added in 2012. AAFL pioneered the export of value added finished products export in the leather sector of finished products export in the leather sector of Bangladesh and is also involved in the local footwear Bangladesh and is also involved in the local footwear retail business with the second largest shoe retail retail business with the second largest shoe retail network in the country.network in the country.

Objective, Vision & Objective, Vision & MissionMission

Objectives:Objectives: Manufacturing shoes, boots, sandals, slippers and all kind Manufacturing shoes, boots, sandals, slippers and all kind

of footwear; to market globally not for domestic market.of footwear; to market globally not for domestic market.

Visions for the Future:Visions for the Future: Apex Adelchi Footwear’s vision is, Apex Adelchi Footwear’s vision is, “Honest Growth”.“Honest Growth”.

Missions:Missions: 1. Sustainable Growth1. Sustainable Growth 2. Vendor of Choice2. Vendor of Choice 3 Creating value for our shareholders3 Creating value for our shareholders 4. Proactive compliance.4. Proactive compliance. 5. Corporate Social Responsibility5. Corporate Social Responsibility

Production CapacityProduction Capacity

SWOT analysis:

Strength Weakness

1. Market leader 1.Mixture of difference culture

2. Best quality provider 2.Diversified product

3. Packaging design 3.Limitation of offering

4. Fast mover advantage 4.Price structure

5.Distribution channel strategy

Opportunity Threat

1. Economic growth 1.Government regulation

2. Large potential market 2.Shortage of technical person

3. Potable for all aged group 3.Price war

4. Easy to collect raw materials 4.Potential competitor

5. Chance to create a new demand 5.Deflation of money

Production Capacity (continue)Production Capacity (continue)

Competitors: Competitors: Apex Adelchi Footwear Ltd.’s main competitors in Bangladesh Apex Adelchi Footwear Ltd.’s main competitors in Bangladesh are BATA, AIMCO Footwear Limited, Fortuna Shoes Limited, Shampan Shoes are BATA, AIMCO Footwear Limited, Fortuna Shoes Limited, Shampan Shoes Limited, Titas Footwear Bangladesh and Bay Emporium.Limited, Titas Footwear Bangladesh and Bay Emporium.

Strength of Apex Adelchi Footwear Ltd: Strength of Apex Adelchi Footwear Ltd: With large market share, Apex With large market share, Apex Adelchi Footwear Ltd is the market leader. They have their huge demand in Adelchi Footwear Ltd is the market leader. They have their huge demand in the foreign market because they could keep up the consistency of their quality the foreign market because they could keep up the consistency of their quality and they are the best quality provider. Their packaging is also unique which and they are the best quality provider. Their packaging is also unique which their strength is also. They also take the fast mover advantage of the market.their strength is also. They also take the fast mover advantage of the market.

Weakness of Apex Adelchi Footwear Ltd: Weakness of Apex Adelchi Footwear Ltd: Their products are quite Their products are quite expensive. They have limitations in their offering. Their distribution channel expensive. They have limitations in their offering. Their distribution channel has to be improved. Their product is not much diversified.has to be improved. Their product is not much diversified.

Opportunity of Apex Adelchi Footwear Ltd: Opportunity of Apex Adelchi Footwear Ltd: They are getting a large They are getting a large potential market. Their product is suitable for all age group.potential market. Their product is suitable for all age group.

Threat of Apex Adelchi Footwear Ltd: Threat of Apex Adelchi Footwear Ltd: Since Apex Adelchi Footwear ltd is a Since Apex Adelchi Footwear ltd is a Bangladeshi based company, some time the foreign government impose some Bangladeshi based company, some time the foreign government impose some rules and regulation which does not support the AAFL activities.rules and regulation which does not support the AAFL activities.

Organizational product & featuresOrganizational product & features

Apex products features:Apex products features:

i. i. Women’s Apex Footwear:Women’s Apex Footwear:

a. Casual:a. Casual:

- Mary Janes, Oxford, Stretch, Loafers & Alip, Sandals, Boots, Heels, Clogs.- Mary Janes, Oxford, Stretch, Loafers & Alip, Sandals, Boots, Heels, Clogs.

b. Dress:b. Dress:- Flats, Boots, Stretch, Heels, Sandals.Flats, Boots, Stretch, Heels, Sandals.

c. Sandals:c. Sandals:

- Thong, Slide, Quarter Strap, Gladiator, Flats, Heels.- Thong, Slide, Quarter Strap, Gladiator, Flats, Heels.

d. Boots:d. Boots:

- Dress, Casual, Equestrian, Waterproof, Barriers.- Dress, Casual, Equestrian, Waterproof, Barriers.

e. Athletic:e. Athletic:

- Runner, RX, Apex Runners, Apex Walkers.- Runner, RX, Apex Runners, Apex Walkers.

f. Barriers:f. Barriers:

- Flats, Boots, Oxfords, Clogs, Zips, Mary Janes, Waterproof, Fur.- Flats, Boots, Oxfords, Clogs, Zips, Mary Janes, Waterproof, Fur.

Organizational product & Organizational product & featuresfeatures

g. Lynco Orthotics:g. Lynco Orthotics:

- Customizable, Sports, Casual, Dress, Conform, - Customizable, Sports, Casual, Dress, Conform, Shearling.Shearling.

ii. Men’s Apex Footwear:ii. Men’s Apex Footwear:

a. Casuala. Casual

b. Dressb. Dress

c. Sandalsc. Sandals

d. Bootsd. Boots

e. Athletse. Athlets

f. Lynco Orthoticsf. Lynco Orthotics

iii. Foot Supports, Slints and Gels.iii. Foot Supports, Slints and Gels.

Marketing ActivitiesMarketing Activities

Marketing Process:Marketing Process:

Apex Adelchi Footwear is a B2B company; they do not sell their Apex Adelchi Footwear is a B2B company; they do not sell their products directly to the end user. Their commercial departments products directly to the end user. Their commercial departments work revolves around only selling to and buying from other work revolves around only selling to and buying from other business. Its main activities are keeping contact with buyer or business. Its main activities are keeping contact with buyer or seller and preparing necessary documents according to the type of seller and preparing necessary documents according to the type of the import or export.the import or export.

Sales Contact:Sales Contact:

The buyer and seller located in different countries, concludes a The buyer and seller located in different countries, concludes a sales contract providing the payment method and terms of sale.sales contract providing the payment method and terms of sale.

Issuing letter of Credit: Issuing letter of Credit:

Revocable and irrevocable L/C.Revocable and irrevocable L/C. L/C Advising:L/C Advising:

When the buyers and sellers are in the different countries, the risk When the buyers and sellers are in the different countries, the risk of the non-payment is high and the authenticity of the letter of of the non-payment is high and the authenticity of the letter of credit becomes a major issue.credit becomes a major issue.

Marketing Activities (continue)Marketing Activities (continue)

L/C Confirmation:L/C Confirmation: After The Janata Bank and Bank Asia confirms the Letter of After The Janata Bank and Bank Asia confirms the Letter of

credit AAFL starts working on the shipment of the goods. L/C credit AAFL starts working on the shipment of the goods. L/C confirmation means after analyzing the 28 documents confirmation means after analyzing the 28 documents authentication and issuing banks credibility The Janata Bank And authentication and issuing banks credibility The Janata Bank And Bank Asia will now take the responsibility of payment guarantee.Bank Asia will now take the responsibility of payment guarantee.

Shipment through freight forwarder:Shipment through freight forwarder: After the L/C confirmation AAFL contact with freight forwarder After the L/C confirmation AAFL contact with freight forwarder

mostly APL Logistics, CMA CGM or Kuehne + Nagel for shipping mostly APL Logistics, CMA CGM or Kuehne + Nagel for shipping their product to the desired port of destination.their product to the desired port of destination.

Clearing and Forwarding agent:Clearing and Forwarding agent: GSP approval:GSP approval:

Marketing Activities Marketing Activities (continue)(continue)

Presentation of Documents:Presentation of Documents: Bill of ExchangeBill of Exchange Performa InvoicePerforma Invoice Commercial InvoiceCommercial Invoice Packing ListPacking List Bill of LadingBill of Lading Certificate of OriginCertificate of Origin GSP formGSP form Export FormExport Form Amendment Acceptance CertificateAmendment Acceptance Certificate Export proceeds:Export proceeds: In Accordance of In Accordance of Uniform Customs and Practice for Uniform Customs and Practice for

Documentary Credits Apex Documentary Credits Apex Adelchi Footwear Limited Adelchi Footwear Limited follows acceptance method to obtain the export payment.follows acceptance method to obtain the export payment.

LEPESTC AnalysisLEPESTC Analysis

11. Legal: . Legal: AAFL must be maintained these regulations to develop their AAFL must be maintained these regulations to develop their business: Competitive regulations, Employment law, Future legislation, business: Competitive regulations, Employment law, Future legislation, Tax regulations, Regulatory, bodies and processes, Consumer protection, Tax regulations, Regulatory, bodies and processes, Consumer protection, International legislation. International legislation.

2. 2. Ecological: Ecological: AAFL uses natural recourses line, water and show rooms are AAFL uses natural recourses line, water and show rooms are free from smoking.free from smoking.

3. 3. Political: Political: The income source of AAFL get hampered due to political The income source of AAFL get hampered due to political unrest. unrest.

4. 4. Economic: Economic: Due to inflation the rate of Apex production rate increase.Due to inflation the rate of Apex production rate increase.

5. 5. Social: Social: AAFL has some special products depend on the culture of the AAFL has some special products depend on the culture of the area.area.

6. 6. Technological: Technological: The selling process of showrooms of AAFL is digital The selling process of showrooms of AAFL is digital transaction process using banking card as ATM, VISA card etc.transaction process using banking card as ATM, VISA card etc.

7. 7. Competitive: Competitive: In the first month of the year, the competitor liker as In the first month of the year, the competitor liker as Jenny’s shoes produces the school shoes like as AAFL.Jenny’s shoes produces the school shoes like as AAFL.

Operational ProcessOperational Process

1. Raw Materials: 1. Raw Materials: They import machinery mainly from Taiwan, China They import machinery mainly from Taiwan, China and Germany. And they collect leather from Apex Tannery and also and Germany. And they collect leather from Apex Tannery and also from Pakistan, India China, it depends buyers choice.from Pakistan, India China, it depends buyers choice.

2. Production Process: 2. Production Process: After collecting the raw materials cutting After collecting the raw materials cutting department cuts out the leather. In every section AAFL have department cuts out the leather. In every section AAFL have employed experts to look after the work of the worker and improve employed experts to look after the work of the worker and improve the efficiency.the efficiency.

3. Distribution: 3. Distribution: After the completing the production factory sends After the completing the production factory sends confirmation to the head office, and then Accounts and Finance confirmation to the head office, and then Accounts and Finance department calculates the cost of the production. After that department calculates the cost of the production. After that commercial department start processing documents to export the commercial department start processing documents to export the products.products.

4. Exporting country: 4. Exporting country: Italy, Germany, France, Japan, Hong Kong, Italy, Germany, France, Japan, Hong Kong, Austria, Belgium, Denmark, Finland, Ireland, Greece, Netherland, Austria, Belgium, Denmark, Finland, Ireland, Greece, Netherland, Norway, Check republic, Portugal, Poland, Romania, Sweden, Norway, Check republic, Portugal, Poland, Romania, Sweden, Switzerland, Slovenia, Spain, U.K., Canada, U.S.A.s.Switzerland, Slovenia, Spain, U.K., Canada, U.S.A.s.

Job DescriptionJob Description

1. Nature of the Job1. Nature of the Job

2. Specific Responsibilities of the 2. Specific Responsibilities of the Job:Job:i.i. Maintaining a database of Export, Import and Maintaining a database of Export, Import and

Landed cost,Landed cost,

ii.ii. Work related with Documentary Credit,Work related with Documentary Credit,

iii.iii. Bank Reconciliation,Bank Reconciliation,

iv.iv. Creating VAT/TAX Certificate,Creating VAT/TAX Certificate,

v.v. GSP approval,GSP approval,

vi.vi. Work related with Bill of Lading.Work related with Bill of Lading.

Objective & Subjective factsObjective & Subjective facts

Objective fact: Objective fact: Objective fact is a Objective fact is a clear, measurable and definable clear, measurable and definable reality. reality.

Example: Economic system, National Example: Economic system, National environment etc.environment etc.

Subjective factSubjective fact: Subjective fact is a : Subjective fact is a particular characteristic which is particular characteristic which is dependent on individual’s perception. dependent on individual’s perception.

Example; Human resource.Example; Human resource.

StakeholderStakeholder

All organizations have a number of stakeholders. A stakeholder is a person, organization, interest group or other body which holds a ‘STAKE” in the business.Stakeholders can affect or be affected by the organization’s actions, objectives andpolicies.

Impact Analysis with other 2 Impact Analysis with other 2 competitorscompetitors

Name of the company

Situation APEX Bata Fortuna

Government Stability + + + + + + +

Export Partners + + + + + + + +

Technological Change + + + + + +

VAS + + + +++ + +

Availability + + + + + -

Consumers’ demand + + + + + -

ConclusionConclusion

When we began our report writing on the Apex When we began our report writing on the Apex Adelchi Limited, we did not know what to Adelchi Limited, we did not know what to expect from this internship because we didn’t expect from this internship because we didn’t have enough insight about the industry. But it have enough insight about the industry. But it turned out to be useful experience for us. turned out to be useful experience for us. Although we worked for a short period of time Although we worked for a short period of time with the company it will be helpful for us to get with the company it will be helpful for us to get ahead in the organizational environment. It ahead in the organizational environment. It benefited me as we were able to gain a lot of benefited me as we were able to gain a lot of knowledge about the company and the knowledge about the company and the industry by observing, working with the industry by observing, working with the employees of AAFL.employees of AAFL.

Recommendation Recommendation Reducing the Intermediaries:Reducing the Intermediaries:

By introducing their brand to other countries they can create a By introducing their brand to other countries they can create a new market. new market.

Skilled and trained employees:Skilled and trained employees:

AAFL need to provide necessary training in technical and practical AAFL need to provide necessary training in technical and practical field for their employees to develop skilled manpower.field for their employees to develop skilled manpower.

Automated system:Automated system:

Need to introduce an automated system for tracking the exports, Need to introduce an automated system for tracking the exports, freight, C&F fee etc which will be efficient.freight, C&F fee etc which will be efficient.

Backward integration:Backward integration:

Besides leather they have to rely on every other raw material for Besides leather they have to rely on every other raw material for importing. importing.

Strengthening LFMEAB:Strengthening LFMEAB:

Strengthening the ability of LFMEAB, so they can point out to Strengthening the ability of LFMEAB, so they can point out to government what are the problems in current export procedure government what are the problems in current export procedure and what they need to do to ease them.and what they need to do to ease them.