Problem definition of BSRM steel ltd. Through discussion with the management group and Annual Report.

Bangladesh has huge potential steel market. The demand for steel is booming, due to six percent annual growth over the last four years. Currently, the local demand for steel rod stands at 2.5 million MT a year in a market of around BDT 12,000 crore. Roughly 295 operating re-rolling mills at present. BSRM is the leading business firm among steel industries in Bangladesh established in 1952 as East Bengal Steel Re-rolling Mills Limited, which came to be known as Bangladesh Steel Re-rolling Mills Limited in the wake of independence in 1971 is a Steel Rerolling Mill containing the most modern and fully automated re-rolling facilities in Bangladesh. In the high-tech world of today, there cannot be any compromise on quality. At BSRM this realization has let to ensuring that every product measures up to the highest International Standards. As far as management excellence of the company is concerned, improvement and innovations are always in the first priority. In 1987,old manual mill machineries were dismantled and switched over to automatic re-rolling technology and increased capacity to cater to the growing demand of the country and also to keep pace with the fast developing modern technology throughout the world, which enhanced the production capacity from 15000 M. Tones to 60,000 M Tones per annum. This plant was commissioned at a cost of over Tk.11 crores without any long-term loan from any Govt. owned financial institutions. BSRM has pioneered a whole range of modern methods for quality assurance and excelled itself in strategic marketing, consumer research, products innovation and development. BSRM is a symbol of quality in the arena of Steel Re-Rolling whose products are widely recognized to be of international standards. In steel Industry in Bangladesh, BSRM is often use as the synonyms of Durability, strength, Reliability, and Economical. BUT BSRM is a private company runs by family members. Board of directors constitute by their own personnel. It has less democracy in business practice. No intense correlation between corporate office and factories. They have little knowledge regarding each others environment. The country are facing inflation problem in recent times, it may boost up the exchange rate which will increase import cost. The competitors are increasing their investment for rising demand. One of the big competitor AKS invested 700 crores more for their new plant.