Busniness Analysis Report

On
GMT

Preface
This report is written on the basis of observations I made during my 5 months job
and stay with all of GMT employees. I tried my level best to give unbiased
statements and write the truth but as a human may be some point in this report I
showed some biasness. I also mentioned names of employees while I should not.
But I do this just to clear the statements and situations to you. I also tried to give
recommendations on the basis of my knowledge and experience.
As an owner and more experience person you should improve my suggestions so if
you think my suggestions could be improved. It will be highly appreciated.

SWOT
Strengths
Good Will
As Mr. Imtiaz is running business last from 10 years, GMT earns good
will in the market and now there needs to grow this good will by
delivering promised products. On that track record of good will, bank
also supports us.
Employees
Employees are the assets of this company and some of the employees
are really are.
Capital
Capital in the business along with a setup that is already eastablished
are also a strength of this business.
Weaknesses (where corrections could be made)
Transparency (Both ways, Down to Up & Up to Down)
o In our organization, it becomes norms/usual thing to hold information
that should be communicate properly to our employees. Some
employees are holding information to get some personal interest or get
some attention from the owner that they are working very hard,
although they are working very hard but they are also using that
specific information to degrade other guys in the eye of Owner as well
as for their personal interests.
o Daily loading program is not written and neither communicated
properly (to concerned person as they need to ask again and again
from ONE person). If we communicated it properly (like written on
white board) there will be lesser chances of mistakes. And is there
happens any of the mistake then we can easily identifies that who
made it.
o Some of GMTs Employees are more loyal than our Owner thinks as
they just do their work that is nor communicated properly to you.
Example: When I joined here, Customer share contracts and
other related detail with Mr. Ahmed, but he holds that
information (intentionally/ unintentionally) for, I think, personal
satisfaction. We (Azeem & Faisal) always needs to ask him
quantity and price for each of purchase made by GMT because
he is the one who made contracts and deal with you.
Recommendations: You & Ahmed should share information in
written form. Either formally (through emails and by making CC
to related guys) or informally (through Whats app groups where
our Owner can share related information to all of us).

I recommend you to activate/subscribe our own server for emails

on outlook express and also recommend you to listen from
downward (from your labor as well).
Whatever decided to be loaded on the next day, it must be
written on a white board from where everyone can read what
will be the loading plan.
After finalization of loading plan, one person (Mr.
Ahmed/Mr. Faisal/Mr. Azeem) will write that plan on a
white board that should be placed outside on given
format. Mr. Sanjay (fourman) will be responsible to write
loading parties in front of concerned Containers/trallas.
And Mr. Faisal/Mr. Ahmed will be responsible to
write concerned transport parties on that board.
Chain of command & Job Responsibilities.
o There is confusion in chain of command for orders as well as for
reporting. Everyone is getting orders from 3~4 person and this leads to
overlapping and gapping of work. Overlapping means one work is
doing by 1~2 persons while some other works are left behind undone.
Its also leads to make all of employees as their own boss. They force
on one another (as leg pulling) for their personal comfort (and some
also do this to torture others) and sometimes all of us denies to do a
work because of clarity in responsibilities. All of us say one sentence.
(i.e. Its not my responsibility.)
o Some employees are mixing their personal relations with
professional relations
Example: Some of your employees, specially labor, are
blackmailed from superiors
(Supervisor teases PRO and always asks Mr. Ahmed to
send him for work whenever he gets chance). Mr. Ahmed
also did this for Mr. Aziz.
Our four-man, whatever he is doing personally (taking
commission from suppliers & lying), but 2 things must not be
done by him. One is torturing/teasing of labor for getting
personal gain(i.e receiving money in shape of bribery or asking
all of them to provide him whatever he request like cold drinks,
cigarettes, milk, grocery items and torturing other who denied to
give him whatever he request)because they are earning very
calculated income. Second is improper Yard management for
material handling along with improper quality controls (for
regaining our good will).
Recommendations: One man cant control everything of
business minutely. SO he hires trained, energetic and EEMAN
DAR person in his command and he delegates some of his
authorities to them while also ensures that they

(subordinates/employees) will never negatively use of their

delegated authorities. So either you should hire trained persons
with good etiquettes/intentions or train them in same way.
Proper job descriptions (authorities and responsibilities) can
also minimize this threat but It will take special attention and
force from your (Mr. Imtiaz Sb) side for job descriptions
implementation as things are not corrected last from many
years.
Record keeping/ Written communication
o As we are doing business on verbal communications, so there happen
many mistakes from both of our parties (buyer/seller for incomplete
information). Our payment delays, our costing changed so as
profit(due to payment terms and delivery terms), our business
relations disturbs so our Good will, our cases delayed and disputes
increases and we were unable to argue on facts & figures. We dont
even exactly know that how many contracts we made for each parties
and how many we fulfilled.
o For shipping line, we should also follow written confirmation and
communication because sometimes we made mistakes and impose its
charges/cost on shipping line and here dispute arises. And due to that
dispute we were unable to continue with a specific shipping line (Shah
Aziz is an exceptional case because I feel there is some
understanding between us).
o STOCK. As we already evaluated stock of our yard, from now onward,
we must purchase/debit our inventory that was returned back in trallas
or in pickups. And also should purchase those empty containers in our
inventory that will be unloaded in yard and discarded for scrap.
(Previously we are not debiting our inventory for these types of
receiving.)
Recommendations: Preparing/Handling of case wise files for
each and every order either we get verbally or through written.
Each file will contain all of its documents along with written
confirmation of sale/purchase order.
Goals, Objectives, Mission & Vision
o We are out of targets. We should have a mission (i.e to fulfill our
customers need) and in accordance with that mission we should build
or plane and targets. Sales along with profit targets. In the end of this
report, a small target summary Is attached. We should also make our
mission statement clear to our customers and employees(other than
profit)
Marketing and customer support/satisfaction
o For local and especially for offshore customers, we must have proper
answering system to their queries. Today we are not responding all of

our emails received from expected customers and even our current
customers are going to be dissatisfied for 2 reasons
Difference in quality for our committed and shipped material.
Delaying in requested information and miscommunication to
them (making promises of giving them their requested
information within 5 to 10 minutes or 30 minutes but will not
respond them for even days.)
o We should response to our existing and expected customers queries
as soon as we can and never ever make promises that we will not full
fill, we should also never give them a deadline to provide requested
material or information if we cant. In my point of view, we should not
make false promises to our customers as we are doing right now. We
just give them diplomatic statements and delays the requested
information without any reason.
o Quality It must be controlled and maintain to rebuilt our name of
good will. For this, as you already suggest, loading person will be
responsible for that.
o We know it difficult for an organization to adjust claims from
employees salary but Just convey them that in future the person who is
on loading sight will be responsible for any claim. It will affect in their
behavior while loading and ultimately our quality will be maintained.
o Build a website of ours and add that website in our visiting cards and
invoices along with newly issued/made email address of GMT server.
o I read a Chinese proverb related to marketing that is If you dont know
how to smile you cannot do business (satisfy you customer).
Dependency
o An organization should always have backup planes for employees and
have everything in written to avoid dependency. I think there is no
need to elaborate this.
Cost Cutting
Transportation
o Transportations are arranged by personal preferences
One person tries to arrange it from Al Haram
2nd person tries to arrange it from that guy from where he will
get some compensation
And some wants to load their own transportation.
o In this fight, GMT suffers. Sometimes drivers faces many problems
from our yard supervisors, even our yard supervisor blackmailed to the
drivers for money or some personal gain and if they deny, he delayed
their container for port submission.
o We should make responsible just ONE person for transportation
arrangements (logistics) and ONE person for loading plane that will
also write loading plan on white board.
HR & Payroll
o We are already going to assign each and everyone his responsibilities

o
o

Timing should be decided and we should (and we can easily) complete

our work in that specified time frame. Loading plane for the next day
should be decided before the end of the day (say before 5O clock) and
Tokens, along with release, must be collected from shipping and
distributed to drivers before 6O clock.
As an owner, you should also held responsible one person for Drivers
gate passes and tokens because they were denied from both sides
(from Mr. Qadeer and from Ahmed). Solution will efficient our
transportation and logistics system as well.
Its good to know that there is culture to distribute EID to all of
employees here in GMT. I just have suggestion to change this eidi to
BONUS (or Bonus Salary) in one year (specially on Eid ul Azha) as
employees needs money for Qurbani.
If we can maintain gratuity, we should. With same rule that gratuity
wiil be paid after 2 years of employment.
I observed following reasons for employees frustrations.
Timing
Respect (you may say whatever you want but not any other
guy/employee/colleague in GMT)
Leg pulling (by 2~3 persons in our yard as groups)
Behavior of Superiors
There should be alignment of organizational goals with the goals of
employees. For this we should give them incentives on the basis of
their performance. While achieving their quantitative goals, we should
continually remind them to maintain quality. (Just after Eid, we should
assign them targets and should think about performance based
incentives.
Build some trust/faith over employees because I read somewhere
during my studies If you dont trust the employees(or cannot trust)
you should replace him/her with some other trusted guy instead of
burning your nights in fear of cheat.

o
Finance & advances
o Our bank charges are too much high, even transaction charges was
recorded on our side while it should be recorded to customers account,
i.e. we are now debiting the same amount that we received in our bank
while before we debit customer account with amount that he deposited
in his bank from transfer (excluding charges). We should also discuss
that which party (Buyer/seller) will be charged for L/C Advising charges
as each time we received L/C, L/C advising charges deducted from our
bank. Forign bank charges needs clarification and I dont know what
and why bank is charging 100~300Aed per transaction as forieng bank
charges.

We should stop advance payments as our bad debts are too high (also
our debtors/creditors amount). Instead of giving advance to others and
bearing an interest on that advance amount, we should purchase on
cash and by our own persons.
We also need to compare the cost of borrowing funds from bank with
profit we are earning from bank against deposited amount. If bank
interest is higher than the profit we received from bank, we should
convert that deposits into working capital. Or minimize that cash to
decrease interest cost.

Opportunities
In international market, there are lots of opportunities to grow. We can
expand this business horizontally or vertically (or from both sides). We can
add different products i.e. non ferrous in our current selling products and we
can also start to purchase buildings or ships by our own self with the help of
bank financing or by some partners. Vertically we can also expand our
business by establishing our own consumption unit of scrap steel by
establishing or purchasing of furnace within or outside of UAE.
If we are not in a position to currently expand our business, we should
consider this option for the future. Because organizations also needs to grows
same as people needs to grow for its survival.
Threats
I dont have much idea about this market, but international suppliers could be
a threat for us. As an example, turning from Europe is less costly as
compared to our export and as per customers feed back it is good than our
product.
Law changes in countries where we are exporting our products may also be a
threat for us because it will decrease demand for our product so here again
we need to explore more opportunities around the globe.
General recommendations
There should be good management of yard for product wise segregation. It will not
only affect our profit but also increase the possibility of loading of unwanted
materials.
Dont be too much expressive, emotional, Quick decision maker Jald baaz and
Personal. Never ever make emotional decision also never ever shouts at employees.
You are a much respected OWNER of this org, if something goes wrong, deal it
professionally. i.e. Issuing a written warning or fine to the guilty persons instead of
shouting at them. Because this disrespect will lead to dissatisfaction. And those who
can encash this disrespect will definitely be encased, and those who cannot will
become dissatisfied.

Monthly plane for Yard and its distribution

Already given

Agenda for Meeting after eid.

Sharing of changes we want in future

Our expectations to follow
Performance sharing
Sharing of Job Description
Assigning of monthly targets
Quality control responsibility
Any other

Daily Loading chart.

Date:___________
Sr. #

Material

Shipping
line

Container
#

Loading
party

Submissio
n