Co- operative Society: Function & ActivityKingshuk Multi- purpose Co- operative LTD

pg. 1

KINGSHUK CO- OPERATIVE LTDFUNCTIONS AND ACTIVITIES

Submitted to, Salahuddin Ahmed KhanProfessor Department of Finance Faculty of Business Studies University of Dhaka

Submitted by,

Group: 03, Section: BZUBAIRIA KHAN JANNATUN NAHAR FARAH LAMIYA MD. YOUNUS ALI RAZIYA SULTANA SHARMIN AKTER 14-050 14-092 14-102 14-122 14-166 14-114

BBA, 14th Batch Department of Finance University of Dhaka Date of Submission: May 16, 2010

pg. 2

LETTER OF TRANSMITTALMay 16, 2010 Salahuddin Ahmed Khan Professor, Department of Finance University of Dhaka Subject: Submission of term-paper. Sir, It is an immense pleasure for us to submit the term paper on Co- operative Society: Function and Activity, which is prepared as a partial requirement of the course named Financial Market and Institutions (F-304) of BBA program under Department of Finance of Faculty of Business Studies, University of Dhaka. This study has given us the opportunity to learn about the Co- operative Society in details as well as its operations & contribution to the economy. Moreover, this study provided us the privilege to know about the new pattern of co- operative practice adopted by Kingshuk Co- operative LTD. We would like to convey our special thanks and gratitude to you for patronizing our effort & for giving us proper guidance and valuable advice. We have put our best effort to ensure the authenticity of the report. We earnestly request you to call us if you think any further work should be done on the topic that you have chosen for us. Thanking you Group 3 14th Batch, Section: B Department of Finance University of Dhaka

pg. 3

Executive SummaryThe specific form of enterprise called co- operative, relying on the specified principles, has proven successful both in developed and developing countries. For socio-economic Co-operative Bank reduces banking exclusion and fosters the economic ability of millions of people by playing an influential role on the economic growth in the country and increases the efficiency of the international financial system

Kingshuk is one of the leading co-operative societies of Bangladesh,

playing

a model role in different sectors of co-operative in coordination with the government body. It works for the sustainable development of the socioeconomic status of the people in a socially responsible manner under the cooperative act, 2001 Kingshuk. The Kingshuk Co- operative is called as Society rather than an organization. This is because in this case people related to the co- operative are of similar background and mentality. Thus, they are being motivated with the thought that togetherness for a definite purpose will accelerate the achievement.

Kingshuk Co- operative there are different projects conducted under the main operational activities with the facility of necessary training & assistance. Such as- Kingshuk Abasan project, Kingshuk CNG station, Kingshuk participatory school, Kingshuk Greenhouse etc. Kingshuk co-operative fulfills the need to members & can take loan as own savings.

pg. 4

Table of Contents

Chapter Chapter I Chapter II

TopicsConceptual to Practical 1.1 Conceptual Approach 1.2 Profile of Kingshuk Functions & Activities 2.1 Prime Functions 2.2 Division of Activities 2.3 Macro Projects 2.4 SOBAK in Details 2.4 Micro Projects Management and Finance 3.1 Managerial Hierarchy 3.2 Administrative Hierarchy 3.3 Project Management Policy 3.4 Financial System 3.5 Collective Leadership Method 3.6 Vision Planning Contribution to Welfare & Development 4.1 Translating Objectives to Welfare 4.2 Ultimate Positive Impact 4.3 Performance: Past & Present 4.4 Recognition & Achievement Analysis & Findings 5.1 SWOC Analysis 5.2 Seven Stage of Flourishing 5.3 Problem & Policy Implication

Pg No 06

12

Chapter III

20

Chapter IV

28

Chapter V

32

pg. 5

Chapter I

pg. 6

Conceptual Approach to Co- operativeCo-operatives represent the human qualities of ourselves; honesty, democratic consensus mutual concern and self-reliance. Our day starts with the fresh milk, the sugar we use in the preparation of sweets, the vegetables which add taste to our lunch, the jute and cotton made products which are the elements of comfort and fashion, the education our children are imparted, the fish and poultry products that we have for dinner, the juicy fruits we enjoy and the chocolates given to kids to put them sleep; all have some contribution of the co-operative movement. Indeed, co-operatives have touched our lives in more ways than one. Here comes a Graphical over-view of the eventual development of the relationship among Co- operative, Co- operative Movement and Co-operative Bank.

Co-operative Movement

An autonomous association of persons united voluntarily to meet their common, economic, social and cultural/needs and aspirations through a jointly owned and democraticallycontrolled enterprise

Voluntary movement of the people, carried out democratically by pooling together their resources or carrying on the given activity, with the purpose of the purpose of achieving or securing certain benefits or advantage which given to people cannot virtue and values such as self-help, mutual help, self-reliance and general goods of all

Co-operative Bank

A financial entity which belongs to its members, who are at the same time the owners and the customers of their bank where banks are often created by persons belonging to the same local or professional community or sharing a common interest.

Co-operative banks differ from stockholder banks by their organization, their goals, their values and their governance. In most countries, they are supervised and controlled by banking authorities and have to respect prudential banking regulations, which put them at a level playing field with stockholder banks. In Bangladesh Co- operative organization are supervised by the Governments office for Co- operative.

Co-operative

pg. 7

Principals of Co- operative Bank

Unity & Equality

Self-help & Mutual Help

The principals are the heart of Co- operative organization which is the indicators of the road- map. Beside these principals there are few relevant factors which influence the operational activities of Co- operative organism: a. b. c. d. Proximity Discipline Honesty Economy

Service & Cooperation

Democracy & Impartiality

Features of Co- operative BankHere we reveal the special features of Co-operative Bank which make it different from other forms of financial institution. Its distinct features are:

1. Customer-owned Entities

In a co-operative bank, the needs of the customers meet the needs of the owners, as co-operative bank members are both. As a consequence, the first aim of a co-operative bank is not to maximize profit but to provide the best possible products and services to its members. Some co-operative banks only operate with their members but most of them also admit non-member clients to benefit from their banking and financial services. 2. Community Based Co-operative banks are deeply rooted inside local areas and communities. They are involved in local development and contribute to the sustainable development of their communities, as their members and management board usually belong to the communities in which they exercise their activities.

pg. 8

3. Profit Allocation

A significant part of the yearly profit, benefits or surplus is usually allocated to constitute reserves in case of Co- operative Bank. A part of this profit can also be distributed to the co-operative members, with legal or statutory limitations in most cases. Profit is usually allocated to members either through a patronage dividend, which is related to the use of the cooperatives products and services by each member, or through an interest or a dividend, which is related to the number of shares subscribed to each member. 4. Democratic Control Co-operative banks are owned and controlled by their members, who democratically elect the board of directors. Members usually have equal voting rights. These are the fundamental principles of co- operative society or bank. All the co- operatives round the globe are to adopt and follow these under the respective legal condition.

pg. 9

KINGSHUK MULTI- PURPOSE CO- OPERATIVE SOCIETY LTD.

Corporate ProfileKingshuk is one of the leading co-operative societies of Bangladesh, playing a model role in different sectors of co-operative in coordination with the government body. It works for the sustainable development of the socioeconomic status of the people in a socially responsible manner.

Mission

Our envisioned society will be selfsustained, free from all sorts of violence and pollution and will be based on equality, justice and wisdom with free mind set.

To ensure value based life-oriented education and employment opportunity for its referral groups community by creation and optimum utilization of resource through mutual cooperation irrespective of religion, caste and gender with restoration of environmental balance

Vision

Objective: Socio-economic development of the society Empowering low-level income group These objectives are the prime focus if the Kingshuk Co- operative Ltd. Different formalized projects are prepared and implemented with a close concentration on these five- in- one model of objectives.

Materializing collective effort

Create employment opportunity

Balancing social inequality

Slogan: Collective efforts for individual development Belief: Not only micro- credit but also micro project is the key to the economic development

pg. 10

Initial Stage of EstablishmentFew students of 3rd year studying in the Department of Marketing under the University of Dhaka took the initiative to save for investment. With their innovative thought and work devotion its theme converted to doing the different through non- stop effort in order to develop a new version of cooperative. At first it was named Mishuk and at the timr of registration name was changed as Kingshuk.

1987 A team of 7 college & university students initiated Kingshuk Movement by depositing Tk.350

1988- 89 7 teams, each consisting 11 members, finally shaped up 11 teams consisting of 121 members to lay the foundation under the leadership of a team leader

1990 Registered under the Cooperative Act of Bangladesh under the preview of Ministry of Local Government, Rural Development and Co-operatives

Founder and Chief Executive: S. A. Mahmudi

Evaluation of Kingshuk Co- operativeIn the time- line the second and third stage were crucial as the building up the functional structure was the prime concern. In the forth stage the co- operative got its formal shape with the inspiration coming from the recognition which was a step toward image setting issue. At the fifth stage Kingshuk got a unique shape which has been a benchmark for co- operative in Bangladesh.

Launching Cooperative Theme1987 to 1990

1991 to 1995

Cooperative Expansion through Automobil e Project

Inaugurating Multipurpose Project1995 to 1998

1998 to 2001

Recognition & Stability

Introducing Modern theme of Co-operative2002 to 2005

pg. 11

Chapter II

pg. 12

Operational ActivitiesPrime FunctionThe functions of Kingshuk can be divided into three prime categories according to which the operational activities are designed and performed sequentially. Capital from own activities Capital from other projects

Capital Collection Investment Income from Investment

Own investment Investment in projects

Income from own loan investment Income from other project investment

Division of ActivitiesDividing all the activities among three zones Kinhshuk tends to function properly. The activities- output of these three zones are balanced to achieve target.

3 Zones consist of 25 Branches; Inside Dhaka- 14, Outside Dhaka- 11

Zone 1 Gazipur Joydebpur Shafipur Tongi Mymensing Gauripur Savar

Zone 2 West Manipur Kazipur Rokeya Sarani Pallabi Farmgate Gausia Jatrabari Mauchak Mohammadpur

Zone 3 Mirpur 1 Mirpur 6 Laalkuthi Khulna Bayra Khulna Dakbanglo Raipur Maulovi Bazar

pg. 13

1. Macro ProjectsThese projects are the core projects of Kingshuk through which it operates main functions. The micro projects are designed and structured in such a way that these are protected sufficiently from possible risk because these are the responsible for the moving flow of functions in Kingshuk. At present there are six running project of Kinhshuk serve for the continuous needs of the members. Kingshuk Samabaya Bikash Kendro (SOBAK) Mother program of Kingshuk is to involve mass people in the society & popularize cooperative concept through out the country. It is the savings program which is the prime source of fund of the co- operative. The main purpose of this project is to encourage members to save more and create opportunities of entrepreneurship with a purpose of self- dependency. Kingshuk Abasan Project A housing or real- estate program to fulfill the need of the member belongs to lower and middle income level by providing apartments & housing plots. Kingshuk has already hand- over a significant number of apartments to its deserving members following the appropriate procedure. Moreover, it is confident that it is able to accommodate hundreds of families through these projects. CNG Station Nowadays being involved in a CNG business is one of the flourishing sector on which Kingshuk have been giving necessary attention. The prospect of it attracts a huge number of young unemployed people for whom Kingshuk initiates the project on CNG station. Already 2 stations has been providing services. Under this a number of activities are in operation inside and outside the Dhaka city. Kingshuk Participatory School For introducing a new era of educational system in Bangladesh Kingshuk starts an educational institution for developing human excellence by implementing participatory model between teachers, parents, students & experts with the concept of Japanese educational system.

pg. 14

Kingshuk Greenhouse To step up with the buzzing word of global warming a nursery has been inaugurated to support the minimization of pollution for a healthy environment & develop Contract Grower Farmer entrepreneurship. Under this project Landscape & Gardening is done by the entrepreneurs. Kingshuk Academy It is a research & development center to improve the cooperative model & provide training to enrich the co-operative societys workforce. It publishes journals, magazines & arranges seminar/symposium to popularize co-operative concept in the society. It also provides guidelines to other co-operative societies by creating bridge between the groups of high and low income level.

SOBAK in DetailsMother program of Kingshuk is to involve mass people in the society & popularize cooperative concept through out the country. It is the savings program, which is the prime source of fund of the co- operative. The main purpose of this project is to encourage members to save more and create opportunities of entrepreneurship with a purpose of self- dependency.

Directors Fund: the most important source is directors fund. Initially theseven team each team consisting eleven members started the co-operative by depositing 350tk.directors fund mainly consists of monthly saving and share capital. Initially the seven team each team consisting eleven members started the co-operative movement by 350tk. And in the time of registration the share capital was 11,950tk and now the amount of share capital is 4,255300.

Projects members fund: the main source of capital is projects membersfund. It includes the policy and others saving and deposits-monthly saving, term deposits, project share and project saving. the amount of term savings are 24,44,26,794 and term deposits are 35,10,18,864 and members deposits are 83510901.

Other source: the main source of capital is members fund and directorsfund and the other source is bank loan.

pg. 15

Graphical Format

2. Micro ProjectsThese projects consist of a very attractive feature to encourage people in being a part of Kingshuk. These projects are designed according to the format of venture capital structure which refers to a specific type of framework of managing funds with the participation of the fund supplier in a formal process under the neutral body. Kingshuk- Spinnovation Joint Venture This is a joint venture project of Kingshuk. The purpose is to provide IT services in the national and global market. As Kingshuk does not have any department for technological support because of its insufficient fund and work force Spinnovation functions all the technological operations of Kingshuk to make it well equipped with the modern technology. Kingshuk Health Club It is a fitness project for young health conscious generation. This project was started at the very initial stage of Kingshuk. Thus it has seen many ups and downs of Kingshuk. Gymnasium for providing the facility of health exercise to build up a healthy future work force in each area is its main concern.

pg. 16

Kingshuk Prothoma This is a boutique shop to fulfill the apparel demand of the people specially focused on the young generation. By involving grass root people apparel saree, salwar-kamiz, fotua, panjabi etc. are designed and stitched in order to fulfill the two-edge need of the related people. Kingshuk Chain Store It is one of the early projects of Kingshuk to appease the daily need of the people by offering grocery products. This project provides necessary food items, agricultural product, cosmetics etc. to the people by establishing small size departmental stores in areas with a central management system. Kingshuk Marketing It works to ensure consumer interest by providing quality services. In future this project will be expanding to function as an intermediary between the producer and consumer group. This project is under the development to contribute the economy of the members. Kingshuk Stock Lot Through this project Kingshuk tends to purchase office & household stock lot & sell in the market. In this case Kingshuk maintains a well known network to supply standardized products in the market. Kingshuk Echo-Tourism Kingshuk takes the responsibility to make tourism popular by establishing resorts & restaurants in different spots. To offer people the facility to relax and recharge well designed and maintained arrangements are done along with the eye- soothing green surrounding. Kingshuk Rent-a-Car To implement the perspective of Move Smooth Kingshuk has started to provide transportation services to the people by involving educated unemployed young generation. In this case, pickup, private car etc. is to ease the problem of moving from one place to another. Kingshuk Trade & Development Under this project Kingshuk imports lime stone & supply in the market. The amount of investment in this case is less as the activities are very much limited.

pg. 17

Kingshuk Agro It is a social fisheries project involving the societys people to benefit social infrastructure. Different types of food items specially dry foods as well as different types of things used in domestic chores are produced and distributed.

Kingshuk Construction & Development Kingshuk invest highly in this kind of projects. In this case Kingshuk provides logistic assistance and services in the construction sector. Nowadays, significant number of members is interested in settling and handling such kind of projects. Kingshuk Doberman Securities All the other projects of Kingshuk need highly efficient security thus Kingshuk Doberman Securities provide security services to the Kingshuk Projects. Outside organizations can also hire or can make contract with Kingshuk for Security Services. Kingshuk IMEX Different kinds of hassles are there in case of export-import business. Though Kingshuk suffers from all these it gives effort in exporting, importing & marketing of different goods among the members through this project. Kingshuk Self-Treatment Kingshuk has introduced special kind of treatment system called acupressure. It is said that medicine has side- effects in most of the cases but there is no side- effects in case of acupressure. Kingshuk has made this new method of treatment popular and useful to the society. Kingshuk D-Add Intetior Design & Media Advertisement is going to be the main concern of this project. This project is being developed to make Kingshuk enter into the glamour world. But sponsor is to be needed to make such project successful as large amount of investment is required here.

pg. 18

Statistical OverviewProjectSOBAK Kingshuk Real Estate Kingshuk Transportation Kingshuk Academy Participatory School Green House Nursery Kingshuk Health Club Kingshuk Marketing Kingshuk Prothoma Kingshuk Trade & Development Kingshuk Power Filling (CNG) Kingshuk Self- treatment Kingshuk Construction Development Kingshuk Bridge Total 400 & 150

Related People40,000 1,000 100 100 300 500 1500 250 150 95

Employed People3312 112 105 17 25 93 35 5 5 156 22 14 55

Capital61,61,25,584 31,67,21,657 27,43,195 7,32,985 1,20,82,447 3,40,326 14,09,209 82,24,051 1,37,70,066 2,56,53,059 8,28,38,143 3,23,252 31,01,274

50 44,595 4931 108,40,65,248

pg. 19

Chapter III

pg. 20

Managerial HierarchyThe enthusiastic and energetic members of Kingshuk handle the managerial functions by following the formal procedure. Have a look how it works in a brief way.

Advisory Committee

Executive Committee

Chief Advisor

Chairman

Advisor 1

Vice Chairman

General Secretary Advisor 2 Assistant General Secretary

Treasurer

Member

Member

Member

Member

The Executive committee of Kingshuk plays role in managing the functions towards achieving the goals. The Advisory Committee is an addition to the Executive Committee. When the Executive Committee fails to function properly the Advisory Committee is in action with full force. The Advisory Committee acts an authority in the Kingshuk. It consists of skilled and experienced people who define the future pathway of Kingshuk.

pg. 21

Administrative HierarchyHere the Administrative Hierarchy is shown. This is the form which reflects the way it actually functions sequentially following proper manner.

General Committee (121)

Executive Committee (9)

CEO

SOBAK Kingshuk Real Estate

Formal Proposal Feasibility Study

Kingshuk Green House Kingshuk Academy

Project Planning

Coordinating Functional TeamAnalysis & Selection Financing & Investing

Kingshuk Perticipatory School Kingshuk Power Filling (CNG) Micro Peojects Inspection & Auditing

Human Resource Development

Maintenance & Monitoring

pg. 22

Among the members of the Kingshuk Co- operative the General Committee is formed in the annual general meeting. The Executive Committee is formed through voting among the members of General committee. This committee hires the Chief Executive Officer who is the head of all functional arena of Kingshuk. The CEO maintains a direct link with the Co- ordinating Functional Team. This team is involved directly with all the activities of different Macro and Micro Projects. The Macro Projects consist of less flexibility and these are the ones which maintain the stability and sustainibility of Kingshuk. Thus these are regulated in a structured way. The Micro Projects are much flexible and done in a less formal way.

Life cycle of Project Formal Proposal Firstly a formal proposal is formulated then its feasibility test is done with very few tools and techniques. Project Planning The planning is settled accoring to the limited resources of the Kingshuk. The skilled and efficient human resource is a crucial problem in Kingshuk for which it lags behind. Analysis & Selection The most important portion called analysis is attempted to be done precisely. In case of technological analysis Kingshuk takes the help of technology professional firms. A downside is social cost benefit analysis and market & demand analysis is not done in Kingshuk in numerical term because of limited work force. Financing & Investing In this stage the source of finance is identified on the periodic basis and allocated according to the decision of the Executive Committee after a discussion with the General Committee. No fixed policy regarding the fund allocation among different investment is done according to the financial status and allocation for the project.

pg. 23

Human Resource Development Though the most hard- working department of Kingshuk is its HRD, it needs much more improvements. This department nourishes and motivates people in order to making them skilled and enthusiastic. But the thing which it needs is eligible people because that will lessen their working complicacy. Maintenance & Monitoring This function is operated in a very limited extent. Sometimes here exists the miscommunication which affects the output adversely. Monitoring works needs involving highly professional specialists that Kingshuk lacks. The HRD and Team do these two jobs most of the cases.

Project Management PolicyIn Kingshuk there is no strictly maintained specific project management policy. But the management decides the preference level among all the macro and micro projects. SOBAK is the main source of financing. Micro projects need comparatively less financing while the macro projects need large amount of investment which is financed by the profit earned from the SOBAK and micro projects. The size of the macro projects is larger than the micro ones.

SOBAK Health Club Micro Project Green House Prothoma

Macro Project

CNG Filling

pg. 24

Financial SystemKingshuk Co- operatives main source of financing is its members monthly savings project called SOBAK. Directors contribute much to function the finance and invest properly through their share in Kingshuk and required monthly savings. Moreover, according to their savings amount and saving scheme members of Kingshuk are allowed to apply for personal loan. Project wise savings is allocated according to the decision taken by the management.

Source of CapitalProject Members fund (Policy & Other)

Directors fund (Own fund)

Monthly Savings

Share Monthly Savings Term Deposit Project Savings Project Share

pg. 25

Collective Leadership MethodIt is leadership which is the fuel of Kingshuk Co- operatives functions. In Kingshuk leadership is of two types; Executive Leadership and Project Leadership.

Chief Executive

Accounts

Accounts

Fit Area Planning Planning

Investment

HRD

Fit Area

Project Director

Investment

HRD

Executive Leadership The Chief Executive of Kingshuk is the light house to the members who shows the way of financial security and sustainability. There are few Chief Executives to make co- ordination among Accounts, Planning, Investment and HRD. The later three departments are to fit according to the requirement of the Accounts department. Here focus is set on the accounts department.

Project Leadership Different projects of a category (category can be real estate, nursery are handled by a Project Manager. Several Project Managers of a category are led by the Project Director. All Project Directors has the power to do each and everything with the projects under his control. Project Directors focus is set on the Human Resource Development.

pg. 26

Vision PlanningThe Vision Planning of Kingshuk Co- operative is based on the intrinsic concepts and calculations. This reflects what happens to the output if any of the inputs go wrong in the functional procedure of Kingshuk. A Matrix Presentation is here to define six different statuses.

Vision + Skill + Incentives + Resources + Action plan = Change (-) + Skill + Incentives + Resources + Action plan = Confusion

Vision + ( - ) + Incentives + Resources + Action plan = Anxiety Vision + Skill + Change (-) + Resources + Action plan = Gradual (-) + Action plan = Frustration (-) = False Start

Vision + Skill + Incentives +

Vision + Skill + Incentives + Resources +

In Kingshuk it is believed that the desired Change comes only when there is a perfect blend of Vision, Skill, Incentives, Resources and Action Plan. If there is any lacking of any of the important factors there are different outcome than the standard one. Then the possible corrective measures are adopted and followed to shape the outcome as near as possible to the desired change which is set as a standard.

pg. 27

Chapter IV

pg. 28

Contribution to Welfare & DevelopmentTranslating objectives to Welfare The objectives of Kingshuk are translated into the functions in the following way.Small savings - Big power Unearthing hidden Prospect Unearthing hidden Prospect Temporary Assistance Co-operative Co-operative Co-operative Co-operative Research Publication Innovation Network

Welfare for Members

Welfare for Co- operatives

Ultimate Positive Impact Lets look at the contribution of Co-operative Bank after combining and compiling the goals and functions. 1. Creating Unity & Solidarity Following the tradition of co- operative the Kingshuk Co- operative is called as Society rather than an organization. This is because in this case people related to the co- operative are of similar background and mentality. Thus, they are being motivated with the thought that togetherness for a definite purpose will accelerate the achievement. 2. Awakening of working Zeal In order to be a part of co- operative people do not need any qualification except desire for development. In case of the model of advanced cooperative like Kingshuk Co- operative there are different projects conducted under the main operational activities with the facility of necessary training & assistance. Thus, now the job- seeking people are no more to be

pg. 29

frustrated in case of unemployment because these opportunities open a new door to them. 3. Solution of the Problem of Capital There are always a large number of people who are interested in doing business. In most of the cases they suffer from the shortage of the fund. Their own fund in the co- operative becomes in use to fulfill their need. This discourages the concept of credit when there is no credit- worthiness of the borrower. In Kingshuk Co- operative members can take loan as much as 80% of own savings from the co- operative. 4. Development of Efficiency Co- operative society offers the chance to develop efficiency which leads to the foundation of a skilled work- force. By utilizing the opportunity to nourish own merit along with the hard work people can take initiative for potential development of the society and country. In Kingshuk Cooperative, members are making full use of the chance of being involved in real- estate project, health- club project etc. 5. Bringing Sustainable Development: The co- operative like Kingshuk re- charge re- arrange the stream of development in a formalized and strategic manner through channeling the capital made by the savings of the members in a prospectus manner. There involves sensibility and analysis in the process of handling the work which ensure the sustainable development of the members. 6. Economic Factor Co-operative Bank like Kingshuk reduces banking exclusion and fosters the economic ability of millions of people by playing an influential role on the economic growth in the country and increases the efficiency of the international financial system. The specific form of enterprise called cooperative, relying on the specified principles, has proven successful both in developed and developing countries. Kingshuk is for the people and by the people; more appropriately it is for the co- operative and by the co- operative. The contribution is nothing but the true result of the effort and attempt adopted by Kingshuk Co- operative in order to making a change in living and life style.

pg. 30

Performance Scenario: Past & PresentParticulars Member Share Capital Savings Deposits Working Capital Fixed Asset Investment At the time of Registration 121 Tk. 11, 950 Tk. 2, 29, 285 Tk. 4, 39, 299 Tk. 6, 313 Tk. 1, 41, 164 At Present Directors: 86 Members: 50000 42, 55, 300 53, 11, 22, 057 64, 97, 17, 235 10, 97, 20, 681 55, 51, 98, 004 Project

Investment till Today: Tk. 55, 51, 98, 004

Various Reserves: Tk. 7, 74, 74, 089

Recognitions & AchievementsKingshuks list of recognition and achievement is no doubt very long. The most inspiring thing is many of the other co- operatives are adopting and following the path of Kingshuk. Kingshuk is prod of these factors; Recognized model of Kingshuk in the co-operative sector Creating platform to offer self-employment opportunity Motivating the educated circle to choose to serve co-operative sector professionally For contributing through the effort of Co- operative the founder chairman of Kingshuk was rewarded gold medal by honorable prime minister as best personality of Co- operative in 1995.

pg. 31

Chapter V

pg. 32

SWOC AnalysisIn this section, we are to analyze the internal and external factors relevant to the operational activities of Kingshuk Co- operative. We define the internal factors as Strength and Weakness while we define the external factors as Opportunities and Challenges according to the language of corporate world. Strength

Voluntary participation of mass people A huge number of people in different zones of Bangladesh are offering own selves in a voluntary approach for the purpose of forming Kingshuk as the light- house of life. Few adverse cases of Banking System and NGO organization have diverted the attention of the potential depositors towards the advanced forum of Kingshuk Co- operative. Trust and co- ordination among the members The most inspiring issue is that Kingshuk makes the practice of freedom of voice which functions as a help- line of maintaining the tradition of trust and co- operation. This is the key of up warding success of Kingshuk. Introducing new dimensions in Co- operative sector It is the interesting point of Kingshuk that it sets the focus as experiment for expertise which encourages the continuous process of doing something in an innovative manner than the other co- operatives. This is such a quality for which Kingshuk stands alone from the crowd.

Weakness

Inefficiency in the management process Kingshuk Co- operative has been suffering from the inefficiency in the management process because of the lack of management line-up of highly qualified professionals.

pg. 33

Indiscipline in the functional cycle There is no standardized fiscal policy about the fund allocation among the projects of Kingshuk. Thus there exists the case of capital rationing. For this reason this co- operative suffered from little financial crisis in 2009. Lack of operational expertise As Kingshuk Co- operative does not have enough fund to hire the highly qualified professionals in different fields. Thus sometimes the standard of the performance is not up to the mark which causes discrepancies between the target and work have been done. Instability of financial sector In a low- income country like Bangladesh, the co- operative sector is not in a good shape because of the minimum attention of Government. For this reason, there is a non- conventional pattern of financial sector in Kingshuk Co- operative.

Opportunity Continuous development of technology To cope up with the demand of the time, Kingshuk Co- operative tends to adopt the various tools and techniques of updated IT field. A renowned IT organization is the associate of Kingshuk for the development and maintenance of software used in operational activities. Moreover, in near there comes more evaluation in the operational activities through the launching of intranet system named as m- wallet. Undoubtedly it will be a start of new era for Kingshuk towards Digital Bangladesh. Experimental Ground of Entrepreneurship From the budding time Kingshuk offers the golden opportunity to a large numbers of unemployed people along with the necessary support and assistance. Through such kind of approach Kingshuk is utilizing the idle work force in the course of wiping unemployment. Branding the Co- operative

pg. 34

Corporate Branding is a buzzword today round the globe which has also stepped in co- operative sector of Bangladesh through Kingshuk Cooperative. Long- term survival Kingshuk Co- operative is established and evaluated on such a concrete base that it will not demolish easily like many other co- operatives in Bangladesh. Its formal organization along with attuned valuation along with the practice of principles assures with evidence that it will stand proudly for the perpetuity.

Challenge Government rule and regulation The lacking of necessary grant and incentive in co- operative sector makes it difficult for financial point of view. Besides, sudden rules and regulations causing adverse effect create a challenging situation for Bangladesh. It is a rumor that Government is going to impose a new rule regarding the membership criteria which is a big threat for co- operatives like Kingshuk. Image hampering activities of other Co- operatives Deceive is very much common in co- operatives of Bangladesh. That is why like the co- operatives of many other countries the co- operatives of our country can not boom potentially. The negative happenings of the other co- operatives naturally create negative attitude in the peoples mind. This causes a danger for Kingshuk as the people tends to take back own share from co- operative and lose interest in it thinking the negative consequences. Lack of interest among skilled people to join Because of traditional thought people still believe that co- operative is not a prospectus field for maintaining the family after fulfilling all financial requirements. Though Kingshuk offers positions with handsome salary in a limited range, there exists an inferiority complex among the potential applicants as Kingshuk is not the very high- profile organization which is an attractive option.

pg. 35

THE SEVEN STAGE OF FLOURISHING

The way how Kingshuk Co-operative flourished is a process of seven stages. We combine all the seven stages here in the graphical format:

Setting off SelfInitiative

Involving other members

Towards the Goal

Co-operative in Practice

Creating Institutional Entity

Reaching the Zenith Establish Co-operative

1. Setting off Self-Initiative It was a dream to establish a successful co-operative for financial support to the member and make them self-sufficient team of seven college and university student initiated kingshuk movement. The aim to remove the poverty and change the members fate by supporting financially initially encourages establishing a co-operative. Primarily the founder of kingshuk S A Mahamudi decided to establish kingshuk as a co-operative and take necessary measure initially.

pg. 36

Area Selection Initiative & Taking Decision Transparency

2. Involving Others as Member After taking decision, Kingshuk want to gather members. Initially the seven team each team consisting eleven members started the co-operative. And finally eleven teams consisting of 121 members gather to lay the foundation under the leadership of a team leader. To gather members or collect member Kingshuk defined the target area and in this area kingshuk performed-

Positive Publicity on Kingshuk in the targeted Area Searching for Investment Opportunity Involvement of at least 100 Members

3. Towards the Goal The ultimate goal of Kingshuk is to become a leading co-operative in Bangladesh and construct a model. The main objective to socio-economic development of the society and create employment opportunity. In this stage the building up the functional structure was the prime concern for his purpose: Temporary Office Opportunity for Micro Investments of 300 Members Searching Opportunity for Micro Investments Mass Publicity

4. Co-operative in Practice Kingshuk has the co-operative business entity and maintain the cooperative act in Bangladesh. In order to perform as co-operative Kingshuk works according to the co-operative act 2001. Kingshuk practices such factors:

pg. 37

Learning Co-operative rules & regulations Creating Professionals Co-operators Beginning Self Employment Activities 5. Creating Institutional Entity: In this stage the co- operative got its formal shape with the inspiration coming from the recognition which was a step toward image setting issue. Building up Organizational structure to form Co-operative Dividends among the members Driving the Stakeholders towards Positive thinking 6. Establish Co-operative Kingshuk got a unique shape which has been a benchmark for cooperative. Naming the Cooperative Delegating Responsibilities Among Members Standardization of Accounting System

7. Reaching the Zenith Kingshuk is one of the leading co-operative societies of Bangladesh, playing a model role in different sectors of co-operative in coordination with the government body. It works for the sustainable development of the socioeconomic status of the people in a socially responsible manner and performing the general activities.

Conduct of General Meeting Activating the Elected Body to Work Rendering Assistance to Kingshuk Bridge Model

pg. 38

Statement of Problem & Policy ImplicationsWe identify several loop- holes regarding Kingshuk Co- operatives functions and operations. These are what create different problems for the organization in different phases. Following are the factors that complicate the scenario in Kingshuk along with the policy implication.

Identified Problem Inefficient work forces: The problem for which Kingshuk suffers most is the insufficiency of member workforce. Though necessary trainings and guidelines are provided by the Human Resource Management, this is not enough.

Policy Implication Nourishing work force: Extended training program with formal gesture and strict monitoring is needed to make a separate department of Training & Guideline.

Lack of technical knowledge: Because of limited financial capability Kingshuk cannot hire people who have expertise in technical sector. To overcome such kind of problem contract with specialized organization.

Opportunity for technical knowledge: The best performers in training sessions can be provided opportunity of achieving higher education in technical arena

Capital Rationing: As there is no specific Capital Allocation Model: There should be a policy of allocating capital, Kingshuk very specific form of capital allocation. Through a model finance department can suffered from capital rationing in last year. solve this problem. Improper Risk Analysis: Inappropriate Risk Management: In case of Risk method of risk analysis leads Kingshuk to Management Kingshuk identification and face credit risk and other relevant risk measurement to wipe off the risk. factors. Managerial Inefficiency: There is lack of Competency of Management: Management professionalism in managerial mechanism of should be more professional and wellequipped with the trend and technology of Kingshuk. market demand.

pg. 39

pg. 40