Brief Management info on Premier Cement

1. Decision Making Policies of
Premier Cement
Prepared For:
Sutapa Bhattacharjee
Assistant Professor
Institute of Business Administration
University of Dhaka
Prepared by:
Mahbub Rahman Nafee(Roll:05)
Saadman Hussain (Roll : 14)
Md. Rafid-ur Rob (Roll : 26)
Mahee Durdana (Roll : 28)
Nahian Rashid Urbee (Roll : 52)

2. Introduction:
Why we chose Premier Cement?
 Premier Cement is one of the top cement brands in Bangladesh
 Sales of BDT 6,416 million for the 2012-13 financial period
 Profit of BDT 499 million (before taxes)
 Provides a good and safe working environment for its 1500
employees

3. Mr. Khurshed Alam
Chief Marketing Officer
Premier Cement

4. Decision Making Steps

5.  The company does not follow each of the eight fundamental
steps
 The steps they follow are as stated below :
 1. Field engineers detect the problem and report to the top-level
managers.
 2. A trend analysis is carried out and a suitable solution is found.
 3. The solution is then implemented via the field engineers.
 4. The field managers then evaluate the effectiveness of the
implemented solution.

6. Decisions that Managers
make in their Four Roles

7.  Planning:
 Managers take decisions that are in the best interests of the business
 During stable conditions, decisions are made by the manager himself
 In the current unstable and highly competitive market situation,
brainstorming sessions are becoming necessary

8.  Organizing:
 Employs about 1500 employees
 Employees are allocated to their jobs according to the functions they
will be carrying out
 Resources are allocated according to the location of sales outlets and
target consumer groups
 Transportation of materials and finished goods, are done using roads
and waterways

9.  Leading:
 A leader needs three important characteristics, will to do hard work,
sincerity and honesty
 Motivation is done mainly through financial incentives;
performance, sales, target achieving and festival bonuses
 Training and Brainstorming sessions also aid motivation

10.  Controlling:
 Controlling is done through a hierarchy of supervisors.
Regional
In charge
District
In charge
Route
In charge
Route
In charge
District
In charge
Route
In charge

11.  Targets set for employees are supervised and results are
monitored.
 Employee performance is checked on a regular basis and regular
appraisal sessions are held.
 Employees with decreasing performance maybe transferred to
other departments or branches
 Introducing a new Management Information System (MIS) for
improved controlling.

12. Decision Making Approach
Types of Decisions
Decision Making Conditions

13. Types of Decisions and Decision Making Approach:
Types of
Problems
Structured
Problems
Unstructured
Problems

14. Structured
Problem
Rational
Routine
Steps
Problems with load shedding
at factories
Managers take rational
decisions
Use of generators

15. Unstructured
Problem
Intuition Based
Maybe take
New Approach
Recent problems with
blockades
Managers took an
intuition based decision
Changed transportation
routes, and employee
working hours

16. Decision-Making Conditions:
 Mostly face decision making conditions of certainty
 Decisions are mostly rational, hence outcomes can be well predicted
 However, some decisions do involve risk and uncertainty
 Such as, when marketing to new clients, establishing marketing
targets and during political unrest

17. Recommendations:
 Following all the eight steps of the decision making process
 Such as assigning weights to the decision criteria
 And developing more alternatives
 To solve the problem more efficiently