Executive Summary

Soya Bean Oil is very important ingredient in cooking for daily life in our Bangladesh. Teer Soya Bean Oil is the demanded one in our local market. It is a high quality & favorable food item for all.

City Group has a very good Supply Chain which is maintained strictly to deliver the product to the customer.

After analyzing the market demand we have seen that there is a demand in the market for this kind of product. And after SWOT analysis we have seen that the company has a great opportunity to enlarge the business into foreign countries.

The supply chain activities of City Group for Soya Bean Oil shows the real image of a supply chain related to our theoretical lessons that helps us to understand the supply chain activities.

Throughout human history, the frequency and content of meals has varied. These tended to be natural, sweet foods that required little preparation.

In nineteenth-century America, interest in nutritious foods shifted from natural foods to prepared commercial foods. Teer refined soya bean oil is that like of ethnic nutritious food item which is produced from the fresh soya bean seeds and Crude degummed soya bean oil.

1 Supply Chain Activities of Teer Soya Bean Oil| City Group

1.0 Introduction
The world is full of wonders. First the raw materials are collected and using them the finished product is made. And then they are stored in different inventories of different locations. After that it is marketed in the market and people can get them from the retailers in the market. The total process or the functions involved in fulfilling a customer request are called supply chain. Describing a supply chain of one of the big manufacturing company of Bangladesh is a great challenge to me. But I have enjoyed the challenge and the journey to fulfill the challenge to describe the total supply chain activities of the city group for TEER soya bean oil. It is a great pleasure to collect the information and match them with the theoretical descriptions from the lessons. Comparing the supply chain was another interesting tusk.

1.1 Origin of the Study:

The report is prepared to fulfill the requirement of subject Network Relationship & Supply Chain Management in the BBA program of Northern University Bangladesh. My course authorized me to prepare a report about Supply Chain Activities. Gathering practical knowledge and experience about supply chain activities in the large organizations is the primary objective of the report. Besides observing this, it shows how the product is produced and delivered to customer and the whole process is controlled or maintained.

1.2 Objective of the Study:

The primary objective of this report is to fulfill the course requirement as a part required by the course. The secondary objective of the report is to let the student introduce with the practical knowledge of the course. The third objective is making the student capable and fit for the job market, as making report is a prime part of the job. In the meanwhile report will help to understand the effectiveness of the course. The main objective of the report is to complete the BBA program by successfully effecting period. And find out the similarity of the theoretical knowledge with the practical experiences of real Supply Chain Activities.

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1.3 Scope of the Study:

I have some scope and opportunities to collect the data for the report. For these I can collect very important data and information. I can collect it from web site, management personals, relatives etc. from the supporting organizations. I get many effective aids like from the supporting organizations web-site I got a lot of information which help me to prepare the report. I use my university library. From our university library we got many help from relevant reports & books.

1.4 Methodology:
Methodology deal with the method is the principle activity of this analysis. In the methodology I firstly try to find out website contain and difference. Then I try to compare with each other. And finally try to find out the position each other. The study requires various types of information, procedures, and methods of import business. Both primary and secondary data are available have been used in preparing their report. Figure 1.1: Data Collection Method

Data Collection

Primary Data Source

Secondary Data

Discussion with the management personal

Operational Manual

Website

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1.5 Limitations of the Study

The following limitations are apparent in the report: Inaccurate or contradictory information. Field practice varies with the standard practice that also created problem. Electricity problem Respondents had limited time to response my question. A fear works everywhere in the company that if it will hamper the goodwill of the company. Lack of data: The relevant data of the website are poor. For the reason I have to fallen several problem. Some time I could not find the appropriate data it is a large limitation.

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2.0Corporate Background:
The date 6th February, 1972 marks the journey of a valiant effort in Gandaria, Dhaka - one which marked the beginning of the company known as "CITY OIL MILLS" - the founder Chairman; Mr. Fazlur Rahman started the group from scraps virtually. The initial period was marked with a lot of hardships due to the post war era when the country faced economic fallout. Initially the mission of the company was to produce mustard oil for the local market consumption. The overwhelming demand for the product propagated and the company soon found its way into the business arena. For the next 18 years, the company operated within the vicinity of the Dhaka city and met the demands of the local market. The revenue generated from this soon gave away for the entrepreneur to evolve the company, which was by now one of the largest mustard oil producing plants in the country. A vision - to transform the company to a 21st century conglomerate of the country started. "City Vegetable Oil Mills" was established at Rupshi, on the outskirts of Dhaka city. This effort evidenced an accelerated growth of City Group and the company was soon found to open two more sister concerns by the year 1994 - "Hasan Vegetable Oil Mills Limited" and "City Fibers Limited". Within this period the founder also devised new production units and soon brand was born "TEER", the name itself captivating the hearts and minds of the people. Appearing in this banner was the flagship product, "TEER SOYA BEAN OIL", which soon found a good market share. The overwhelming revenue generated and the unprecedented popularity of the products of City Group soon found its way into the hearts of the people. City Group was by now one of the emerging industries of the country with an ever-expanding business, which led to 21 sister concerns by the end of the year 2006. Presently, the company focuses on meeting and responding to the ever-changing needs of the consumers both home and abroad. Till now City Group is one of the largest company in the country, and business reaching foreign countries making it one of the best conglomerates of the country. Years of meticulous work have paid off and by now CITY GROUP OF INDUSTRIES has started its alteration towards an International Standard Company along with its 21 sister concerns. The journey till now remains an epic adventure with more yet to come and they strive with a quest - "A Quest for Excellence!"

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2.1Key Milestones:
Sl# 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Name of Company Name of Product Mustard Oil MS Rod Refined Soya bean oil & Palm Olein P.P. Oven Bag HDPE Containers Atta, Flour & Semolina Paper Carton Tin Containers PET Bottle and Mineral Water Mustard Oil Refined Soya bean & Palm Olein Beans Indenting P.P. Oven Bag Refined Soya bean & Palm Olein Refined Soya bean & Palm Olein Refined Coconut Oil Poultry & Fish Feed Soya meal & Rapeseed Cake Salt Sugar Year of Establishment 1972 1985 June 1990 October 1992 September 1994 December 1995 September 1999 September 1999 February 2001 April 2001 April 2001 June 2001 2001 August 2001 October 2003 February 2004 May 2004 November 2004 February 2005 March 2005 July 2006

City Oil Mills

City Rerolling Mills City Vegetable Oil Mills Limited City Fibers Limited City Vegetable Oil Mills Limited Hasan Flour Mills Limited Hasan Printing & Packaging Industries Limited Hasan Containers Limited City Vegetable Oil Mills Limited Shampa Oil Mills Limited Farzana Oil Refineries Limited City Dal Mills Limited Grain mark Rahman Synthetics Limited Deepa Food Products Limited VOTT Oil Refineries Limited City Hair Oil Limited City Feed Products Ltd. City Seed Crushing Industries Ltd. City Salt Industries Ltd City Sugar Industries Ltd

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2.2Chairmans Massage:
It gives me a great honor and pleasure to introduce City Group of Industries to you. For over 36 years our company has made valiant efforts in order to provide the consumers in the mass and premium market with quality products. We always look forward into all the aspects of providing quality food and health consumables for you. From the initial days till now we strive always to achieve customer satisfaction by providing quality consumables at rational price. We have presently achieved a reasonable market share in the local market with our products. We are presently exporting in the Middle East and some other places as well and look forward to serve the whole world as an International Brand. We always look forward to you on how to achieve more customer satisfaction. Please let us know regarding any aspect you feel concerned about through our website. We look forward to extend our services through this website. Welcome and wish you best of luck. Hope your journey through our web site will be a pleasant one.

2.3Recognition:
In recognition to his excellent contribution to the business arena of Bangladesh, Mr. Fazlur Rahman, Chairman of City Group received the most prestigious business award "Business Person of the Year 2005" given by DHL-Daily Star Business Award. Our Mission is: To provide high quality health and food consumables for the consumers in an affordable price and raise awareness in the Local & International market for manufactured consumables from Bangladesh. Keeping this goal ahead they embarked on a mission. Along the stages they achieve a lot and the key milestones provides the information of their establishments.

Corporate - Mission Statement

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2.4Corporate Vision
To transform the company to a 21st century conglomerate of the country.

2.5Corporate mission
To provide HYGIENE, HEALTH & EXCELLENCE in food consumables for the consumers at an affordable price and raise awareness in the Local & International market

City Group cares a great deal about the health concern of consumers. This is what enables them to maintain the highest quality of hygiene and health standards while marketing their products, in order to meet the common goal - Excellence! The products have acquired fame and are quite popular in the context of Bangladesh. Each of the brands & products are the ambassadors of the company's goodwill and their struggles to achieve success through quality. The potentials are very high for the products in the market. The entire range of consumables is packed using very high quality food grade packs, PET bottles & HDPE cans. They also use a wide range of world-class high quality machinery in their production units to provide hygienic food consumables to the consumers.

Their Principal Objectives can be further broken down into 5 parts:

Passion for Excellence Business Integrity Pioneering Commitment Development

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2.6Products; They Produced

The past years have been proved to be the testing grounds for City Group in the domestic and international arena. Achieving more than 21 production units - City Group continues with its achievement of milestones every year. Starting after the Liberation war with virtually nothing - City Group has now been able to establish itself as one of the premier level Group of Industries in the corporate arena of Bangladesh and has managed to gain fame overseas as well. Being in the forefront it always encourages the employees to take bold steps in expansion of their business. This is certainly a huge achievement for the company. In the years to come its a hope to play a leading role in the corporate sector of the country and fulfill the common goal - "Quest for Excellence!" Products: Refined Soya Bean Oil Refined Palm Olean Super Refined Palm Olean Mustard Oil Coconut Oil Vanspati Wheat Flour Semolina Mineral water Beans Iodized Salt Refined Coconut Oil Refined Sugar Poultry & Fish Feed Soya meal & Rapeseed cake

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2.7Brands:

Teer, Jibon, Sun, Natural Teer

Teer is the premium brand, which is also our first brand into market. Based upon our corporate logo , it emphasizes on achieving all high quality products, which come to

captivate the heart of the consumers. The three red arrows of EXCELLENCE! Hygiene is a key factor when one particularly produces food items. At City Group it is ensured the entire production unit maintains the highest levels of Hygiene while manufacturing food items, as the business depends upon quality products. It is not only the brand that speaks but also the relentless pursuit of achieving excellence in the products. Each of the flagship products under is cared for with highest levels of symbolize the three aspects of quality HYGIENE, HEALTH &

quality and assuring the strictest standards possible. Each of our consumers throughout the country knows the brand popularly as they would in any other brand. Being of age and respected in the market, all the products under market share that makes the company proud. holds a competitive

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The Products -

has welcomed in her wings are:

Refined Soya bean Oil Mustard Oil Coconut Oil Refined Palm Olein Double Fractionated Palm Olein Beans Vanaspati Atta Flour Semolina (Suji) Salt Soya meal Rapeseed Cake Poultry Feed Fish Feed Refined Canola Oil Sugar

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3.1 The Raw Materials

City Group of Industries rely on excessive imports to ensure proper hygiene and quality levels for food based consumable items. They import all round the year to keep up with the production levels. They encourage all professional companies engaged in export of foreign items to kindly contact them at grainmark@citygroupbd.com Import & Export Department is located in the Corporate Office. The foreign or local suppliers, who are interest to do a business, contact with I&E department to make a deal. The list of food consumable commodities used for regular import is as follows:

Food Items Wheat Peas Pulses Mustard Seeds Canola Seeds Rape Seeds Soya bean Seed Crude Degummed Soya bean Oil (CDSO) Crude Palm Oil Crude Palm Olein Raw Sugar

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3.2Refined Soya bean Oil

Refined from Crude Degummed Soya bean Oil (CDSO) Teer Refined Soya bean Oil is one of the key flagship brands of City Group. Other than that the company also produces Sun Refined Soya bean Oil. The extraction process starts first as Crude Degummed Soya bean Oil (CDSO) is imported directly from foreign countries in large oil tankers to Chittagong port, from where its brought to the refineries of City Group. The CDSO is refined with utmost perfection maintaining a harmony of both International and Local Standards that are required along with safety and hygiene concerns. The refining process eliminates all the impurities that are present in the CDSO in the form of acid oil, moisture, gum and etc making sure it reaches the hands of the consumers in perfect cooking condition. For our consumer benefits the Standard Specifications and Nutrition Facts for Soya bean Oil is provided below: Specifications Refractive Index at 40o C Iodine Value Acid Value Unsaponifiable Matter Saponification Value Volatile Matter at 105o C Percent by Mass 1.466 1.470 122-135 0.06-0.12 mg/g as KOH 3.25 4.00 mg/g as KOH 190.1 192.5 mg/g as KOH 0.08 0.12

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Nutrition Facts Per serving of 10 gm Calories Cholesterol Sodium Saturates Monounsaturated Polyunsaturated 90K Cal Nil Nil 1.50 g 2.00 g 6.50 g

Our

Refined Soya bean Oil a flagship product from City Group comes in three types

of Pack to meet the everyday needs of every type of household and consumer. Our packing sizes are provided below:

Food Grade HDPE Poly Bag

900 mL

Food Grade HDPE Can

5 Liters

4 Liters

3 Liters

2 Liters

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Food Grade PET Bottle

5 Liter

4 Liter

3 Liter

2 Liter 1 Liter

500 mL

Tin

16 Liter

Drum

186 Kg 15 Supply Chain Activities of Teer Soya Bean Oil| City Group

4.1Distribution Network
Good product marketing depends on a good and effective distribution network. The company believes in these words and this is what inspires the company to drive further and further strengthen its network. City Group has an extensive array of distribution network and with the help of this network it has been able to extend its products into all the districts of Bangladesh. It looks further into the prospects of extending its distribution network to all the Thana level and welcomes all prospective Distributors / Dealers. This ensures the product availability. Each individual territory is taken care of well in advance by their territory managers and their sales staffs are always there to assist the distributors with the demands. This shows the ability to keep up with the Response Time. The products have been popular with the people of the country and with the overwhelming demand; they are furnishing themselves to meet the new consumer. This shows the Customer Experience about the Teer soya bean oil. The company hopes to meet the consumers through its distributors and look forward with effective planning and strategic campaigning to support its sales. Only the coming days will predict its quality The consumer pack is the vital tool in the day-to-day business of the company. Going out for the mass market the consumers, they take high care into their products and make sure that they are of best quality with the variety. Meeting the standards of BSTI (Bangladesh Standard Testing Institute), all of the products are manufactured with the maximum effort into maintaining quality and hygiene. Starting from the collection of manufacturing items wheat, crude palm olein, soya bean oil till the packing and finally delivery, each of the process is thoroughly checked by the QC staffs who work round the clock to maintain the best quality of products from the manufacturing units. Standard hygienic food grade poly packs and PET bottles are used to obtain the best quality 16 Supply Chain Activities of Teer Soya Bean Oil| City Group

of environmentally perishable items and are packed with the latest machines for the everyday consumers.

The Supply Chain Activities of Teer Refined Soya Bean Oil

Supplier

inventory

Dealers/Distributors

Foreign import Team

Packaging unit

wholesalers

Mongla or Potengya port

City Vegetable Oil Mills Limited (4th & Final Refining)

Retailers

VOTT mill (1st & 2nd Refining)

Farzana Oil Refineries Limited (3rd Refining)

Customer

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Suppliers
City Group of Industries also welcomes prospective companies, which may be interested into supplying raw materials, equipment, etc. They enlisted the suppliers with their plan into their database for evaluation. Mainly the Raw materials for Teer Soya Bean Oil are Crude Degummed Soya bean Oil (CDSO) and Soya bean Seed. The Crude Degummed Soya bean Oil (CDSO) and Soya bean Seed are purchased specially from Argentina, Brazil, Canada, Australia and Russia. Moreover they collect the material from other countries also. There is a foreign import team working in different countries that visit the areas for the grains and negotiate the price and make a deal. After that members of the foreign import team placed the raw materials into the ships to send them into Bangladesh. In this process city group hires the international ships for transportation. Moreover a team of the company always works inside the country to visit various locations to purchase the Soya bean seeds from the best farmer. This trading is generally happens in the Mukam (Haat) of different villages. After that they use different transports like container, trucks, pickup vans etc to send the materials into the production side.

Manufacturer
After reaching into the Mongla and Potengya Port the materials are carried by the company ships (MV CITY) into Chittagong VOTT Oil Refineries Limited where the 1st & 2nd refining are done. Then using MV Tanker Ships the materials are transferred into the Farzana Oil Refineries Limited for 3rd refining which is situated in Rupshee. After that they are moved into City Vegetable Oil Mills Limited for 4th and final refining. The refining process eliminates all the impurities that are present in the CDSO in the form of acid oil, moisture, gum and etc making sure it reaches the hands of the consumers in perfect cooking condition.

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Then the refined soya bean oil is ready for the consumers and it is packetized into the Food Grade Poly bags from City Fibers Limited, into Food grade HDPE cans from Hasan Plastic Industries Limited, into Food Grade pet bottles from City PET Industries Limited and into Food Grade Tins from Hasan Containers Limited. All these packages are printed from Hasan Printing & Packaging Industries Limited where the cartons are produced & printed. All these industries are situated in Rupshee. After 4th refining some oils are packaged into 186kgs Drums for the industrial uses which are from Hasan Plastic Industries Limited. These drums are used for the barrel wise sold oil. Now Teer Refined Soya Bean Oil is ready to use. Now it is stored into the ware houses of the company and according to the orders it delivers 2000 ton of oils everyday to the dealers of the City Group. They get the orders from the distributors by dues or memos of the orders in papers or over the system software and then send the orders to the distributors within a very short time which is not more than 20 days. The company carries the transportation cost for the delivery.

Distributors
City Group has more than 1000 distributors all over the country. The company fixes the area for the distributors and fixes the lowest amount of distributorship for the agencies or dealers who want to get distributorship. Who can carry the cost to hold inventories needed according to the company requirement are selected according to the tender process. Distributors send the orders to the manufacture unit using the due process from the company and within a very short time Distributors get the orders from the wholesalers and they always have the stock. Then they deliver the orders to the wholesalers according to the negotiation of the lead time. It takes one or two days only.

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Wholesalers
Wholesalers are the local groceries of different markets of the different areas. They go to the distributors and order the amount of the products they needed. Then the order is delivered to wholesalers within 2 days. Wholesalers have their own inventories into their shops.

Retailers
Retailers are the local grocery shops and other retail points. They collect the products from the wholesalers or the local distributors in wholesale prices. Then sell the products to the customer at retail prices.

Customers
Customers go to the retail shops or nearest wholesalers to buy the product and after paying the money they can buy the required product from them. Moreover the company directly deals with other companies for the industrially used oils which are provided with 186kg Drums. These types of companies are Olympia Bakery, Decent Pastry Shops, Alamin Foods, and Bonoful etc. On the other hand some chain shops like Agora, Meena Bazar and others have the contract for the Teer refined soya bean oil with the company.

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5.1Supply chain design for Teer Soya Bean Oil

The City Group has a strong supply chain design to make the product always available in the market. They have over 1000 distributors all over the country to cover all the locations with huge capacity. The company has its own transports; moreover it has the deals with other transport companies to avoid the lack of transport. The company uses trucks, pickups vans, containers, tanker ships, ships of its own. The company has a good information system all over the company. Now the computer is using in every offices to list the daily trades with special software.

5.2Supply Chain Planning

Teer Soya Bean Oil is a very popular product in the Bangladesh. It captured in all the segments of Bangladeshi food oil market The company built the strong inventories which has all the features to store the product safely for long time and to avoid the uncertain over demands. So the company always tries to make the inventory full all the time. The company gives the distributorship to dealers who are nearer from each other to make a backup for demand uncertainty. The company has the plan always to promote the product over the country. So they fix the time and plan for the market promotions by advertising the product in radio and TV concerning the demand uncertainty, competitors over the time horizon.

5.3Supply Chain Operation

The company delivers the product everyday according to the due time. The company accepts the individual orders from the customers. The company is determined about its operating policies like the company delivers the product in right time. The works of different units are set to avoid the confusion and indiscipline. 21 Supply Chain Activities of Teer Soya Bean Oil| City Group

5.4Demand Uncertainty
Teer Refined Soya Bean Oil is a daily life product so it has the demand in the market all the time. Thats why the company is always trying to increase the production capacity to meet the local demand. Moreover the demand for the soya bean oil can be predictable. So the company has already increases a great number of channels all over the country. This is a great advantage for the company to beat the short Lead Time. Already the company has different variety of the product. The company is increasing its technological sights in an impressive way that can allow the high levels of innovation. So we can say if there is any Demand Uncertainty the can easily handle the uncertain demand with its assets, policies and the hard works of its employees.

5.5Whether the supply chain of Teer soya bean oil is responsive or efficient:
The company follows the highest quality for the products with the higher margin profit for pricing strategy. According to the Mfg Strategy it follows the capacity flexibility for manufacturing the product. But they tries to reduce the lead time but not at expense of greater cost. According to the supplier selection strategy they prefer the speed, flexibility and quality of the raw materials with the suppliers. City Group has a greater reliance on responsive modes of transportation. For the inventory the company has buffer inventory or stock. So we can say the supply chain of Teer soya bean oil is mainly responsive but it changes the decisions about supply chain activities with different situations focusing on customer satisfaction.

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6.0Drivers of the supply chain

Facilities
City Group has more than 1000 Dealers or distributors all over the country. It looks further into the prospects of extending its distribution network to all the Thana level and welcomes all prospective Distributors / Dealers. The company has two company outlets one of which is situated in Gandaria and another one is situated in Konapara.

Inventory
City group of industries have the huge places for the inventory. The company always maintains the flow of the product regularly. It keeps the inventory full every time.

Transportation
The company usesTrucks Tanker Ships International Ships Containers/ Cargo Pickup vans etc.

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Info System
Info system is very systematic in city group. All the current trading information are saved in computers with a special software and it can be displayed to the other offices of City Group.

Sourcing
The company selects the best suppliers from the outside of the country or inside the country. They choose the raw materials by the experts and then a negotiation happens. After a deal the supplier is selected and evaluated all the time for his supply. If the supply satisfies the QC experts then the company tries to create a good relation with those suppliers for future trades. As the raw materials are purchased by the foreign import department so they physically check the materials and then send them to the manufacturing unit. The team on behalf of the company contracts with suppliers for product availability with quantity flexibility contracts.

Pricing
There is always pricing policy in a company. The city group has some pricing policies also. But which is declared the company follows the international market to make the pricing of the product.

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7.0 SWOT analysis:

SWOT Analysis

Internal Factors

External Factors

Strenghth

Weakness

Opportunity

Threats

SWOT stands for Strength, Weakness, Opportunities and Threats. It is one of the most important steps in formulating strategy for a product.

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7.1 Strength:
. They should follow a good strategy. These are given below: Strong Brand Image in the market. It is healthy. No color is added. All the staffs in company are well experienced and skilled.

Existing Channel.
Good maintenance of supply chain

7.2 Weakness:
Some old processes are followed Sometimes the lead time increases

7.3 Opportunity:
Easy to become a market leader. Dragging new customer. Opportunity to expand business in abroad. Developing a new marketing strategy.

New products Idea. Large Market. Availability of raw materials.

7.4 Threat:
Political unrest. Extortion and rising crimes. New Competitors.

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8.0 Findings:
The purpose of Supply Chain Activities of City Group for Teer Soya Bean Oil is to understand the practical Supply chain activities in real life. The company keep the relationship with the supplier How do they maintain the production and the quality How the distribution network works to deliver the product to the customer hand

8.1 Recommendations:
The promotional activities should be increased. The product should be well designed. The product should be advertised effectively. The product should not be overpriced. Consideration of competitors is necessary.

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9.0 Conclusion:

The City Group is a very well-known company in our Country. Refined Soya Bean oil is the daily needed product in our life. Teer Refined Oil is meeting the daily demands for soya bean oil all over the country with the best quality and that possible happens only for the good Supply Chain of Teer Refined Soya Bean Oil. Hope one Teer Refined Soya Bean Oil will capture the foreign market with the leading power besides meeting the demand of the local markets.

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References
Management personal of City Group Documents
Internship Report Previous Report

Websites
www.citygroup.com.bd

Address
City Group of Industries 115/7 A, Distillary Road, Gandaria, Dhaka-1204, Bangladesh.

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