Term Paper On Polar

(Dhaka Ice Cream Industries Limited)

LETTER OF TRANSMITTAL
April 24, 2011
To
Dr. Nazrul Islam
Professor
Department of Business Administration
East West University
Sub: Submission of report on management Practice of Polar(Dhaka Ice
Cream Industries Ltd).

Dear Sir
We are glad to submit our Report on management Practice of Polar(Dhaka Ice Cream
Industries Ltd). We try our best to pick up the practical information for this report. If there
any mistake please excuses us.
We hope that you will accept our report on management Practice of Polar(Dhaka Ice
Cream Industries Ltd.)
Sincerely Yours

Sadia Rahman Diba

Farhana Ahmed Tinny
Ananta Kishor Chanda
Fuad Ibne Ahmed

Acknowledgement
We want to give special thanks toMr. Golam Habib
Head of HR & Administration,

Polar (Dhaka Ice Cream Industries Ltd.)

Dhaka.

1. Purpose
2. Limitations
3. History & Background
4. Vision, Mission, Objectives, Theme
5. Company Profile
6. Products of Polar
7. Market Share
8. Policy of Polar
9. Planning
10. Organizing
11. Leading
12. Controlling

01
01
02-03
04
05
06
06
06
07
08
08-09
10-12

13. Motivation
14. Staff Separation
15. Asset Management
16. Purchase & Procurement
17. Conclusion

13
14
14
14
15

Purpose:
Management is the most important element of a organization. Recently we are going to
complete MGT-101 course which has fundamental ideas of management. Our groups
main purpose is to find how Polar is implementing the ideas of management in their
organization.

Limitations:
We have faced some limitations to research our project, these are given below:

1. Shortage of time.

2. Facing problems in data collection.

3. It was very tough for our group members to fix a same time to group work.

Hisory & Background:

Late Mr. Amanullah Miah, a leading private entrepreneur was the promoter and founder
of Bangladesh Beverage Industries Ltd. (BBIL), which was incorporated much earlier
than the formation of Dhaka Ice Cream Industries Ltd. (DIIL), was initially engaged in
soft drink business, manufacturing and marketing PEPSI cola in Bangladesh, BBIL
expanded and diversified its operation by setting up a new industrial unit on 9 March
1986 and venturing into Ice Cream Business.

It is evident from historical record and a letter from the department of industries, ref #
IPC/2840/85/343 of 09.03.1986, that the Bangladesh Beverage Industries Ltd., 385

Tejgaon Industrial Area, Dhaka, was accorded with the permission to set up a new
industrial unit in the sector of dairy farming and dairy products (Ice Cream) with a
production capacity of 916,5000 liters and an estimated product value of Tk. 36.6
million. Permission was also accorded to establish letter(s) of credit to import
machineries under wage earner scheme for an amount of Tk. 7.99 million.

It is understood that the DIIL commenced its commercial production in early 1988 and
continued with Danish Technical Assistance , supervised by a Danish consultant under an
agreement. After the expiry of the agreement and subsequent working capital problem, the
company ceased its production and sales in and from December 2007. In order to re-start
business, recently there have been some major changes in shareholdings as well as
management of the DIIL. The new management intends to start its production and business
in the first quarter of 2009

Vision:
To gain number one position in Ice Cream sector is their vision.

Mission:
To become a premium food company specially in ice cream sector by producing &
selling best quality products & add values to their stakeholders.

Objectives:
Earning profit with social accountability is the main objective of Polar.

Theme of Polar:
Delight in every bite.

Company Profile:

Name of the Company : Polar (Dhaka Ice Cream Industries Ltd) .

Year of Establishment : 1986

Initial Capital

: 36.6 million.

Board Of directors

: 03 Persons.

Number of Executive

: 68 Persons.

Mid level Executive

: 22 Persons.

Lower level Executive : 20 Persons.

Business Sector

: Food & Beverage.

Authorized capital

: 40 million taka.

Profit

: 5%

Working zone

: All 64 Districts of Bangladesh.

Products Of Polar
The unit as many as 39 SKUs and 25 distinctive brands/flavor. The image of Polar as the
truly customer oriented company emerged because of its introduction of new & exciting
products frequently in the market. There are also premium extruded ice cream sticks
products like Magnum produced out of the state of the art line extrusion technology,
which is the first ever in sub-continent.

Market Share
The competition is pretty stiff in the ice cream market but polar still leads with an approx.
share of 20%, Igloo has approx. 60% market share, followed by Kwality at around 15%
market share, while Milk Vita and Savoy manages the rest.

Some Policy Polar

1. Recruitment Policy.
2. Business travel tour Policy
3. Leave and holiday Policy
4. Corporate cellular phone Policy.
5. Company car allowance Policy.
6. Sales target Policy.

Management Practice Applied In Polar

Planning:
Production of Polar was completely stopped for 30 months. In 2008 new management
took the responsibility to reestablish Polar. After 9 months hurdle they became
successful to start production. They have settled their plan and recruited new people,
bought new parts, and thus they have expand their business. During 2009 they have
achieved 100% target. They saw that Bangladesh has a huge potential market of Ice
cream. In 2010 the management of Polar target twice than 2009 and they have already
managed to achieve it. They have raised 45% more target established for the year 2011.

VALUES OF Polar:
Maintaining their value is their first priority of their planning.
Self-reliant/sustainability.
Balance of environment.

 Secularism
Honesty and justice.
Peace and prosperity.
Transparency.
Accountability.
Innovation
Unity

Organizing
Polar is a business organization. Their main target is to become no.1 Ice Cream brand in
Bangladesh. They are working according to their plan. They have structural work plan to
accomplish organizational goal.

Leading
Leadership motto of Polar is you follow or lead. In this purpose age or seniority is not a
fact. In leadership they follow Non Directive style of management. Polar lead their

institution by segmenting their responsibility like administration, audit, Monitoring &

Evaluation, research, planning & publication, human resource development etc. Now
their descriptions are given below.

Administration:

Administration department of Polar is one of the vital departments. At present this

department is run by a senior experienced line manager under close observation of the
head of HR & Administration. The task of this department is to initiate new
administrative rules & regulation as well as monitoring the implementation of those rules
& regulations in the organization. This department is also liable to maintain discipline in
the organization and has the authority to take any kind of disciplinary action with the
consent of the Executive Director of Polar. The administration department also exposes
the significant rights of Polar to the society as well as ensures its benefits from its contact
with the other organizations

Controlling:

Every employee of Polar has given power but that should be used only in working area. If
employee can achieve 98% of the target then its all right but if any one fails to maintain
the target without any certain reason then he would be punished. Polar actually belive in
improving they actually dont control people they call the system as performance
appreciable system.
In Polar controlling functions are mainly handled by human resource department. Polars
controlling functions are given below.

RECUITMENT, SELECTION AND APPOINTMENT OF

STAFF

In Polar there are three categories of staff recruitment policyRecruitment from open competition; this is done by normally floating open advertisement
responding to which CVs from the prospective candidates are collected. If necessary a
shortlist is prepared. Then a recruitment test is conducted. A test again may imply both
written and viva-voce. Evaluation is done based on that test. The candidates are ranked on
the basis of this evaluation. HRD recommends selections of candidates to be appointed
based on this ranking. Then after receiving necessary approval from the appropriate
authority it takes up the job of appointment.

PERFORMANCE APPRAISALS

Performance Appraisal of staff exists in Polar from the year 1988 when the entire process
was conducted by the Administration Department. But from the year 2006 the whole
production has been postponed. process. But from 2009 To carryout the process properly
HRD has been accomplishing orientation programs on Annual Performance Report (APR)
and as a result hereof an employee can properly perform appraisal exercise. In Polar
promotion and normal increment depend on the performance appraisal system.

PERSONAL MANAGEMENT
Personnel management in Polar is done through a system of filing regarding the serving
staff of different departments. The entire process has been so far maintained manually but
recently HRD is planning to conduct the process by developing software. HRD however,
still now, follows the following steps to handle the personal files.

 To prepare plan.
To develop information collection formats according to the software requirements.
To collect information and develop the method of collection.
To verify and classify the collected information.

Motivation System:
Polar follow some techniques to motivate their employees. Management of Polar
motivate their employees through monetary & non monetary way. Polar has segmented
their employees in two ways.
a) Sales Person.
b) Non sales person.
People who works in sales area of Polar are given bonus & rewards on their sales which
has been targeted by the administration of Polar. If they can achieve 98% of their goal they
are rewarded by bonus. The bonus amount for Zonal officers = 20,000 Taka, Regional
officers = 10,0000 taka and for Area sales officers bonus amount is 5,000-7,000 taka.

Bonus for non sales person are given on their Key performance indicator or KPI. For
getting bonus they have to accomplish these works: increasing profit growth, cost
minimization, working efficiently & effectively.

Management authority of Polar distributes 5% over total profit to workers.

Other Management Functions of Polar

STAFF SEPARATION
In this part HRD mainly performs the following tasks:
1. To develop and reorganize staff separation policy.
2. To develop retirement plan.
3. To offer counseling to retain potential staff
4. To recommend clearance on the case of benefits to be given to the staff in the time of
separation based on HR-Policy.
5. To handle the cases of final payment.

Asset Management
1. To develop & to ensure the management of fixed assets policy at Polar.

2. To maintain the inventory of fixed assets & make it up to date half yearly as well as
to provide safeguard to those assets.
3. To ensure proper utilization of fixed assets at Polar.

PURCHASE & PROCUREMENT

1. To ensure purchase & procurement by following Polar procedure and process.
2. To directly take part in purchase & procurement of goods and services.
3. To constitute purchase and procurement committees.
4. To issue work order on purchase.
5. To Process provide logistic support to tendering.

Conclusion:
Polar is one of the favorite ice-cream brand in our country. It has developed its condition
gradually day by day. We know that this company was totally stopped for 2 years. In 2007
new management group gradually develop its condition because this management group
have some vision , mission and various rules and regulation. They have some strategy for
employee, customer, director ,manager ,sells executive. They have some unique motivation
system to motivate people and maintain strong recruitment system to recruitment new
employee. We can

say that this is a good management oriented organization. This

companys main goal is to achieve position number 1 in our country by 2012. We are
hopeful about that. Organization. Because a dead company recovered its life is a difficult

job but management of polar company made it possible. So this organizations

management is strong and goal oriented. We are very much pleased to visit this
organization because we have learnt a organizations management functions practically.