Deepthy Report R1 C

AN ORGANIZATIONAL STUDY ON
MK TRADING CO. LLC, WADI AL KABIR,

OMAN

By
DEEPTHY RAMAKRISHNAN
Reg. No. 52553

Submitted to the
MAHATMA GANDHI UNIVERSITY
In partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

Mr. SANTHOSH S.
Associate Professor

SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
ALUVA, COCHIN, KERALA 683106


CERTIFICATE

This is to certify that the report entitled, An Organizational study on, MK
Trading CO LLC, Wadi Al Kabir, Oman is a bonafide record submitted by
Ms. Deepthy Ramakrishnan, Reg. No: 52553, in partial fulfillment of the
requirements for the award of the Degree of Master of Business
Administration during the academic years 2013-2015.

Date: Dr. RADHA P. THEVANNOOR
DIRECTOR


CERTIFICATE

This is to certify that the report entitled An Organizational study on, MK
Trading CO LLC, Wadi Al Kabir, Oman has been successfully completed
by Ms. Deepthy Ramakrishnan, Reg. No: 52553, in partial fulfillment of
the requirements for the award of degree of Master of Business
Administration, under my guidance during the academic years 2013-2015.

Date: Mr. SANTHOSH S
ASSOCIATE PROFESSOR

Company Certificate

DECLARATION

I, Deepthy Ramakrishnan hereby declare that the report entitled, An
Organizational study on MK Trading CO LLC, Wadi Al Kabir, Oman is my
original work.
I further declare that this report is based on the information collected by me
and has not previously been submitted to any other University or Academic
body.

Date: DEEPTHY RAMAKRISHNAN
Reg.No:52553

vi

ACKNOWLEDGEMENT
In preparing this Internship training report I have been fortunate enough to get support
from a number of people to whom I shall remain grateful.
First and foremost I thank god almighty for giving me the ability to do this study and
make the venture a success
I express my sincere gratitude to my college, SCMS School of Technology And
Management(SSTM) for giving me such a fantastic exposure of the real corporate
scenario. I place my sincere thanks to Dr. Radha P. Thevannoor, Director, SSTM, for
providing me an opportunity to do an organizational study in the company, as part of the
curriculum.
I am deeply grateful to my faculty in charge and guide Mr. Santhosh S, who was always
a source of inspiration and helped me in the fulfillment of this project.
I also express my deep felt gratitude to the General Manager, Mr. Anwar Shafique,
the Divisional Manager, Mr. V.S. Boban and the Project Coordinator, Mr. Solomon
and all other staffs in MK Trading CO LLC, for rendering timely relevant information,
valuable suggestions, assistance and encouragement which I found extremely useful for
the organizational study. Without which it could have been difficult for me to complete
my organizational study.
I express my profound gratitude to the management for having kindly permitted me to
undertake an organization study in their esteemed organization MK Trading CO LLC.
Last but not least, with deep feelings of indebtedness, I express my heartfelt thanks to my
parents, friends and well-wishers who have directly and indirectly contributed towards
this organizational study.
vii

EXECUTIVE SUMMARY
The organizational study was conducted at MK Trading, Wadi Al Kabir, Oman. The
reason I choose this organization is because there is a rising demand for pre engineered
steel buildings in the present scenario. And MK Trading has been one of the well
established companys of Oman in the pre engineered steel building sector. They design,
fabricate and install steel buildings such as warehouses and multi storey buildings for
Lulu, Oman Oil etc. The main strength of the company is their skilled laborers, highly
qualified engineers with a good amount of technical skills, use of advanced technology
and also is to design cost effective buildings in the shortest duration. All buildings are
designed and manufactured to comply with American and British Design codes and latest
softwares.
The study was conducted from May1
st
2014 to June 1
st
2014. For the project I had the
access to meet the employees of various departments for the considerable time duration
which helped me to gain insight about the type of work they do and study the role and
functions of each department in the organization.
The report is an endeavor to cover the overall organization structure, department,
procedures and functions of the organization and also cover the industry profile and
company profile with their objectives that the company have. The report gives an inside
managerial functions, operative functions towards the product and the employee of the
organization.

TABLE OF CONTENTS
Chapter
No:
Title Page No:
Acknowledgement vi
Executive Summary vii
List of Figures ix
One Introduction
Introduction to the study 1
Scope of the study 2
Objectives of the study 2
Methodology 3
Limitations of the study 3
Two Analysis Of Business Environment
Analysis of remote external environment 6
Industry Profile 10
Industry Analysis 16
Competitor Analysis 21
Three Organizational Analysis
Overview of the Organization 23
Organization Structure 32
Functional Analysis 34
Organizational Analysis 72
Four Observation And Conclusion
Observations and Suggestions 75
Conclusions 77
BIBLIOGRAPHY 78
ix

LIST OF TABLES AND FIGURES

Tables Page No
Table 1 Competitor Analysis 21
Table 2 Business Performance for last 5 years 28
Table 3 Strength of Manpower 29
Figures
Figure 1 Iron and Steel Production in 2013 12
Figure 2 Number of Registered Companies in Gulf
Steel Sector
15
Figure 3 Porters Five Force Analysis 16
Figure 4 Corporate Structure 32
Figure 5 Business and Departmental Structure 33
Figure 6 Marketing Department Structure 34
Figure 7 Marketing Design Data Sheet 36
Figure 8 Estimation Department Structure 39
Figure 9 Estimation Quotations 41
Figure 10 Design Department Structure 42
Figure 11 Design and Detailing Drawings 46
Figure 12 Production Department Structure 47
x

Figure 13

Pre Engineered Building Structure

48
Figure 14 Main Frames 49
Figure 15 Steel Sheet Fabrication 52
Figure 16 Sandwich Panel 53
Figure 17 Finance Department Structure 54
Figure 18 Purchase and Store Department Structure 57
Figure 19 Purchase, Receipt and Order Notes 60
Figure 20 Human Resource Department Structure 61
Figure 21 Quality Department Structure 66
Figure 22 Safety Department Structure 70

CHAPTER- 1
INTRODUCTION

2

Introduction
Introduction to the Study
An organization is a social arrangement which pursues collective goals, which
controls its own performance, and which has a boundary separating from its environment.
Organization is the association formed by a group of people who see that there are
benefits available from working towards achieving a common goal.
Organizational study is the examination of how individuals construct organizational
structures, processes, and practices and how these, in turn, shape social relations and
create institutions that ultimately influences people. Organizational studies comprise
different areas that deal with the different aspects of the organizations, many of the
approaches are functionalist but critical research also provide alternative frame for
understanding in the field.
It is the study of individual as well as group dynamics within an organization. Whenever
people interact in the organization many factors come into play. Organizational study
attempts to understand and model these factors. It is very essential to an MBA graduate
as it helps to associate theory with practice.
In an organization study each and every departments in an organization is being observed
and analyzed in detail. The study gives important to every departments of an organization
and projects their need towards the organization in achieving its objectives. The study
also gives the management trainees an opportunity for interacting with the people
working in the organization and to internalize their good qualities.
Organizational structure means the systematic and orderly arrangement of personnel in an
organization and delegation of authority in order to avoid raw conflict So after an
organization study the trainee will have a very clear picture of the functioning and the
method adopted in the organization and will help the trainee in knowing a lot about the
basic functioning of the organization.

Scope of Study
The organizational study was carried out to know the functioning of the various
departments as knowing it on a practical basis will have different perspective from the
3

theoretical view. Also to know what all steps could be taken by the management for
future development.
The study also gave me the opportunity to study the efficiency of each employee in
completing the tasks assigned in the time allotted which ultimately affects effective
functioning of each department.

Objective of Study
To get an organizational exposure.
To study about the way in which the design, fabrication and erection of the steel
structures is performed.
The study is helpful in understanding the various problems faced by the
organization and what necessary actions could be taken by the management to
overcome these issues.
It helps in understanding the functioning of each department and the
interdependence among each department.
It also helps in analyzing what factors are responsible for attaining job
satisfaction of the employees.
The study also helps in analyzing the superior- subordinate relationship which is
very essential in attaining the goals of the organization.
An overall analysis of the performance can be done by using the SWOT
analysis

Methodology of Study
The study was carried out for a period of 4 weeks and in the meantime, required
information was gathered from the following sources.
1. Primary Data Sources
2. Secondary Data Source
Primary data sources. Primary data are the data that is collected for the first
time. Information was collected by conducting personnel interviews and discussions with
Managers and other officials, employees of the company and also by direct observation.
4

Secondary data sources. Secondary data was collected from books, periodicals,
literature published, Internet and from other various documents. Secondary data like
information regarding the company, its history and profile are collected from company
manuals, journals, brochures, website, and from other company records.

Limitations of the Study
Difficulty in meeting with all the Top level Officials.
Time allotted for the study is insufficient.
Busy schedule of the officers and employees prevented lengthy discussions.
Most of the data is collected by personnel interview and hence the information
may be wrong or incomplete.
Some company documents are confidential so it was not possible to include
them.
Some personal interviews were affected by some personal bias.

CHAPTER-2
BUSINESS ENVIRONMENT ANALYSIS

6

Analysis of the Business Environment
Analysis Of The Remote External Environment
The external environmental factors that affect the companys business could be
analyzed using PEST analysis.
Political Factors : Omans political system has remained comparatively stable
under the rule of His Majesty Sultan Qaboos bin Said al-Said, thus providing a supportive
environment for local and foreign businesses for over 30 years. The Sultan has guided the
country along a sound economic path with a focus on building good infrastructure and the
provision of decent public services a path, which has proved popular in spite of the lack
of a democratic government, thus keeping the risk of political instability low.
In early 2011 there was a surge in frustration among certain parts of the
population centered on the current employment situation, low wages, alleged
corruption in parts of government and rising food prices. To respond to these
demands, the Sultan reshuffled his ministerial team.
Limited Government :
Oman has no income tax, and the corporate tax rate is 12 percent. There is also no
consumption tax or value-added tax (VAT). The overall tax burden is 2.2 percent
of gross domestic income. Government expenditures equal about 38 percent of
GDP. Oil and gas revenues, which constitute 84 percent of total revenue, have
helped to keep public debt low at less than 10 percent of GDP.
Regulatory efficiency:
Discouraging more dynamic job growth, labor laws enforce the Omanization
policy that requires private-sector firms to meet quotas for hiring native Omani
workers.
,the number of Omanis employed in the private sector is rising as result of the
Omanization process (since 1988), aimed at replacing existing expatriate
workers with local labour. In this context, the Government has introduced quotas,
penalizing companies that do not hire Omanis.
Obtaining necessary permits for starting a business takes more than 150 days.
Open Markets:
7

Omans average tariff rate is 3.2 percent. Licensing procedures for several
products deter imports. Foreign investors may not own land. The financial sector
continues to evolve, and commercial banks perform well. Most credit is offered at
market rates, but the government uses subsidized loans to promote investment.
The Muscat Securities Market is active and open to foreign investors.
Economic Factors : The Omani Government promotes and supports foreign
direct investment (FDI) as part of its efforts to expand the private sectors role in the
economy. FDIs are allowed in most sectors of the economy, however, the level of
foreign ownership is often limited and foreign investors are required to employ Omani
labour. FDI flows grew 41% in 2013 to OMR570 million ($1.48 billion), up from
OMR404 million ($1.05 billion) in the previous year.
The World Bank recently projected Oman's real GDP growth at 4.9 per cent in
2014 and five per cent in 2015.
Oman's gross domestic product (GDP), calculated at market prices, grew by 2.8
per cent to OMR 30,627.7 million in 2013, up from OMR29,797.7 million posted
the previous year. Oman is an important exporter of oil.
The contribution from non-petroleum activities is expected to go up this year at a
faster pace than petroleum sector. The growth in manufacturing and tourism
sectors will be the key drivers for the increased contribution.
Significant imports include transport equipment, electrical machinery, mechanical
appliances, and mineral products. One of the countrys largest trade partners is the
neighboring UAE, accounting for 11% of exports and 27% of imports. The steel
imports has thus increased from Al Jazeera Steel and JFE Steel, UAE and hence
beneficial to the industry for steel fabrication and erection.
The NCSI (National Centre for Statistics and Information) data also showed that
total non-petroleum activities grew by 7.6 per cent in 2013, reaching OMR17,
229.6 million, from OMR16, 008.1 million the previous year.

8

Social Factors : Omans health care system, which is largely based on public
sector providers, performs well providing almost universal access to services for Omanis.
There have been heavy investments in medical facilities and human resources since 1970
and the Government spending on healthcare has averaged more than 5 per cent of total
public expenditure over the past five years.
The Omani social insurance system was established by Royal Decree No. 72/1991
and has been in place since 1992, providing old age, death and disability pensions
to public and privatesector employees.
The female population is also given equal importance and hence no gender bias.
The number of Omanis employed in the private sector is rising as a result of the
Omanization process, aimed at replacing existing expatriate workers with local
labour but creating jobs for young Omanis will remain a big challenge in the
coming years.
Technological Factors : The Oman steel industry has reduced its CO
2
emissions
per ton of steel shipped by 30 percent since 1990.
Because of the industrys voluntary investments in R&D and resulting new
technologies, Oman steelmaking processes are highly optimized.
New processes are developed which will revolutionize steelmaking and take
advantage of alternative energy sources.
Most modern large-capacity blast furnaces represent extremely efficient chemical
reactors, capable of stable operation with an impressive range of reactant feed
materials. The injection of pulverized coal, natural gas, oil, and, in some cases,
recycled plastics to replace a portion of the metallurgical coke used as the primary
reluctant and source of chemical energy represents an important development in
the process.
The current expected lifetime of newly rebuilt furnaces is 20 years or greater.
Automatic welding machines have also replaced the manual welding with more
accuracy.

9

Environmental Factors : The Omani Government is committed to
environmental protection and has introduced a set of environmental laws and regulations,
such as the law on the Conservation of the Environment and Prevention of Pollution,
regulations for water, waste, chemicals, radioactivity, environment permits and others.
Oman is also committed to a wide range of international environmental treaties and
accords including the Basel Convention on the Control of Trans boundary Movements of
Hazardous Wastes.

Legal Factors: Collective bargaining is a relatively new concept in Oman, with
the royal decree making it possible to use collective bargaining to set wages and working
conditions. In cases when there is no trade union, collective bargaining can take place
between the employer and five representatives selected by the workers of the enterprise.
Only one trade union federation is allowed: the General Federation of Oman Trade
Unions (GFOTU). There must be at least 25 employees for a union to be formed,
regardless of the size of the company and the Ministry of Employment may refuse to
register a trade union.

10

Industry Profile
About Steel Industry. The industry directly employs more than two million
people worldwide, with a further two million contractors and four million people in
supporting industries. Considering steels position as the key product supplier to
industries such as automotive, construction, transport, power and machine goods, and
using a multiplier of 25:1, the steel industry is at the source of employment for more than
50 million people. World crude steel production has increased from 851 megatonnes (Mt)
in 2001 to 1,607 Mt for the year 2013. (It was 28.3 Mt in 1900).World average steel use
per capita has steadily increased from 150kg in 2001 to 217kg in 2012. India, Brazil,
South Korea and Turkey have all entered the top ten steel producers list in the past 40
years.

Global Scenario. Economic scenario around the world continues to be
challenging but hopefully seems to be bottoming out. Euro Zone, the single biggest
source of concern is struggling to stabilize with active support and leadership from
Germany and France. The US economy staging a slow & steady recovery faces tough
scal deadlines. The world has apparently come to terms with slower growth in China.
Stakeholders are in fact optimistic even with this growth as it is over a large base.
Demand is driven largely by the needs of other industrial companies and is therefore
linked to economic growth. The profitability of individual companies depends on
technical expertise and efficient manufacturing. Large companies have economies of
scale in purchasing raw materials. The specialized nature and use of many products
allows smaller companies to compete effectively.
In the global steel industry, there is growing cause for optimism, as we continue to edge
away from the recession. There are a number of factors that are leading to improved
conditions for steel companies, but there are also several lingering, fundamental issues
that the industry will need to address if it is to see sustained, long-term growth.
In the coming year, the World Steel Associations forecast sees global steel production
increasing by about 3.3 to 3.4 percent. This would be in line with the 3.5% growth, seen
in 2013.
11

The year 2014 will be an important transition year for the global steel industry, because it
will mark the first time since 2011 that all major steel-consuming countries show positive
growth. The year will also mark the first time since 2006 that the growth rate in China
(about 3 percent) will be exceeded by the rate for the rest of the world (about 3.5
percent). This pattern is likely to persist for the indefinite future as China shifts to a
services and consumer-driven economic growth model, and growth in the other emerging
economies takes stronger hold.
These developments suggest that the industry has turned the corner and is headed into
recovery, and several current trends point to continued improvements in 2014. These
include:
Gradually improving capacity utilization, (78.1% in 2013 vs 76.2% in
2012), as excess capacity is slowly absorbed or closed. Here, there is
potential for dramatic improvement if China decides to accelerate the
closing of aging plants and facilities with especially pollution-intensive
operations.
Less disruption in steel trade as Chinese exports slow, in response to the
anti-dumping rulings that have come down in many countries throughout
the world. Indeed, the OECD report 2013 saw a record number of anti-
dumping and countervailing trade cases filed since 1999.
Expected further softening of raw material pricesespecially iron oreas
new supply enters the market. This should provide some relief from the
squeeze created by higher material costs and the inability to pass those
costs on to customers.
In short, the industry is getting healthier, but its condition is still somewhat tenuousand
it will be important to keep a cautious eye on events as they unfold in the coming year.
The industry will need to maintain the discipline to keep eliminating excess capacity,
even as demand creeps up. And as always, companies will need to focus on operational
excellence and efficiency. Efforts in those areas will be valuable regardless of whether
the industrys growth stalls in the near term or continues for the long termand they will
be key to taking advantage of todays opportunities while preparing for an uncertain
future.
12

Figure 1
Iron and Steel production in 2013
Source: Adapted from World Steel Association, www.worldsteel.org/statistics-
archive 2013

Oman and Middle East Scenario. While some projects to increase steelmaking
capacity in the Middle East and North Africa have proceeded more slowly than originally
envisaged large and temporarily immobile inventories of billet and rebar plunging in
value in the wake of the financial crisis several years ago forced reconsideration of their
pace of progress significant advances have been made. Projects at Emirates Steel in
UAE, Sulb in Bahrain and Jindal Shadeed in Oman are examples of regional expansion.
The fundamental advantages of producing steel in the region are unchanged. An
abundance of reasonably priced power for such an energy-intensive industry is one of
them. A plentiful supply of natural gas as a reducing agent for making direct reduced iron
(DRI) is another.
In the Middle East, the most stunning progress will be made in steelmaking itself. It
expects crude steel output to double in the Middle East to 50 million tonnes by 2018 and
to almost 18 million tonnes in North Africa.
13

Jindal is building a 2 million tpy EAF for completion in 2013 that will be fed from its
existing DRI plant in Oman. It then has plans to move further downstream with an initial
investment in a medium section mill, although this has yet to be confirmed.

One of the strongest regions for growth has been in the Gulf Co-operation Council (GCC)
market. High oil and gas prices have provided a budgetary boost to governments. In turn,
they appear to have undertaken a political commitment to invest in infrastructure and to
diversify into manufacturing in what remain quite centrally-driven economies. This is
hugely steel-intensive and will underpin medium-term steel demand growth for at least
the next 2-3 years, with Saudi Arabia the key example. This is not only important for
rebar and structural sections, but also for products such as wire rod. As an example, the
Omani governments private investment group Takamul is building a 60,000 tpy
galvanized wire plant in 2013 in conjunction with Singapores Global Steel Industries.

One of the biggest planned investments in the region is the Jindal Shadeed integrated
steel mill in Oman, which will eventually comprise a 7 million tpy iron ore pelletizing
plant, a Midrex DRI/HBI plant, a 2 million tpy melt shop and a long products rolling
mill. Indias Jindal Steel & Power (JSPL) acquired the Shadeed DRI project for $464
million in 2010, and the 1.5 million tpy Midrex DRI/HBI module started up at the end of
that year. Prior to the melt shop commissioning next year, Shadeed has been exporting
the HBI produced just over 1 million tonnes were sold last year. JSPL is now engaged
in expanding the project at Sohar Industrial Port into a complete steelmaking complex,
and a 2.0 million tpy melt shop is scheduled to commission in the final quarter of 2013.
The Danieli-built melt shop will be fed directly by hot DRI, and comprise a 150-tonne
EAF, a 150-tonne ladle furnace, a 200-tonne twin-tank vacuum degasser, and a 2 million
tpy 6-strand billet/bloom caster. The associated infrastructure also includes an air
separation plant, a 4,800 cu metre/day desalination plant and extensive port facilities. The
semis produced will be initially targeted mainly at the Saudi market, as well as domestic
re-rollers supplying Omans infrastructure projects. In time, however, it is planned that
much of the billet produced will be taken up by a 1 million tpy rolling mill for rebar and
14

merchant bar, plus a seamless pipe mill, which are expected to start around 2015. These
represent a $400 million investment, while the melt shop is put at $475 million.

Jindal foresees the DRI plant expanding from 1.5 million to 5 million tpy over the next
five years, which will be fed by a 7 million tpy iron ore pelletizing plant now in the
planning stage. Like several steel mills in the region, Omans Sohar Steel started out as a
pure rolling mill for rebar, and has since integrated back into steelmaking. The rolling
company, Sharq Sohar Steel Rolling Mills (SSSRM), has a capacity for 300,000 tpy of 8-
32 mm diameter rebar, which can be epoxy coated. Sister company Sohar Steel was built
with a 36-tonne EAF and ladle furnace feeding a 3-strand caster for 100, 120 and 130
mm sq billet. It can produce 250,000 tpy of billet.
The port of Sohar is developing into a focus for steel products in the Gulf, with Al
Jazeera Steel Products also being established there. This company buys billet and has
four ERW tubes making lines with a total capacity of 300,000 tpy of international-
standard tube products with plain, threaded and coupled ends. It also has three
galvanizing lines for corrosion-protected tube up to 219 mm diameter. Al Jazeera Steel
has subsequently commissioned a 300,000 tpy merchant bar mill for producing angles,
channels, squares, flats and rounds. The company says it is exporting products to 25
countries, including North America, Europe and Australia.

15

Figure 2
The number of registered companies in Gulf steel sector
Source: Adapted from World Steel Association, www.worldsteel.org/statistics/gulf
sector

Steel consumption across the GCC region has increased underpinned by significant
investment in the construction sector. Saudi Arabia is the largest market in not only GCC
but the MENA region. Saudi Arabia's Hadeed is the world's 40th largest producer of steel
with a production of around five million tons. The GCC countries will continue to remain
a major consumer of steel products, which constitute 60 % of the estimated demand as
these countries continue to invest in infrastructure and the petrochemicals sector to
sustain economic growth.
Saudi and Qatar have regulatory mechanisms in place and hence the steel prices are
controlled in these two markets. Though there are firms that import at cheaper prices and
sell below the administered prices, these two markets have guidelines and are not subject
to wild price fluctuations. Oman uses UAE steel as the benchmark and moves in tandem
with the pricing from Emirates Steel. The Bahrain steel prices are administered by Qatar
Steel and Emirates Steel and it is not a very capricious market. There have been swings in
the UAE market but with Emirates Steel playing an active role, the major swings have
been dampened a bit.
16

Industry Analysis
Porters Five Force Analysis

Figure 3
Porters Five Force analysis
Source: Michael Porter, Competitive Strategy, 1980, Adapted from
www.notesdesk.org/encyclopedia
Threat of New Entrants
The threat of new entrants is high, providing you have the engineering expertise,
sufficient startup capital and necessary tooling, anyone can start an engineering
workshop specialising in steel fabrication.
Through repetition, economies of scale can be gained. Fabricating steel beams for
a high rise building is an example of this.
There is not strong brand identity for steel fabricators. They rely on reputation
with the prime contractors and previous experience. Any new entrant would be
assumed to have the level of expertise necessary to provide steel fabrication for
these large projects.
There are no switching costs for the prime contractors, as each new project is put
out to tender.
17

Steel fabrication companies focus on producing for the local market. MK Trading
do not tender for overseas jobs due to shipping costs. They concentrate on areas in
Oman itself like Sohar, Ghala, and Rusayl etc.
Contracts are obtained through tender and are most likely to be won if tendered at
the lowest price.
Barriers to entry are therefore low in the steel fabrication business.

Threat Of Substitute Products
The substitutes at this level of the industry are concrete, composite steel
concretes and fibre composite.
Composite "I" beams could replace the steel "I" beams in building structures
in high earthquake risk areas as a substitute because it is tough and flexible
Bonding methods used to fabricate composites are as good as welding with
current technology.
Bargaining Power Of Suppliers
The determinants of Supplier Power are quality, reliability, price and delivery.
Suppliers have little power as the steel fabricator can switch from one to
another depending on who is offering the best price and can meet logistical
requirements.
Supplier concentration tends to be in the main centres where the construction
is taking place. MK Trading have relationships with all the steel merchants in
the industry. There are a number of steel merchants in the Rusayl area. Each
individual merchant possesses little supplier power.
A steel fabricator could purchase a steel merchant business and therefore
maximise its buyer power. This would result in a decrease of existing supplier
power.
MK Trading cannot purchase directly from steel manufacturers like Al
Jazeera. Steel manufacturers will only supply to steel merchants who on sell
18

to steel fabricators. Al Jazeera has purchasing criteria that must be met; for
example a minimum purchase quantity of 200 tonnes.
The highest cost component of the job is the purchase of the raw material,
steel. If the purchase price of steel is dropping then it decreases as a
percentage of the total cost of the job. As a consequence of this the steel
supplier power will weaken.
From above arguments our conclusion is that the suppliers power is weak in
this industry.
Bargaining Power of Buyers
The buyers in this industry are the Prime Contractors, large construction
companies that have won tenders to construct the high rises. They respond to
invitations to tender and are selected by price.
The Prime Contractors have the balance of power in this process of tendering and
making the decision on which steel fabricator is selected.
This industry is price sensitive, usually the lowest price wins the tendering
process. There is again no real brand identity in the steel fabrication business. The
Prime contractor will take into account the companys reputation and quality of
work in the past.
The quality and performance of the material the steel fabricators use is important
as all construction in Muscat is subject to quality control, this includes materials
used. The Prime Contractor wants the best quality, the best performance at the
lowest price.
All sub contractors delivering their part of the project on time and at the quality
level required provides an increase in margin for the Prime Contractor. The more
effectively the co-ordination of project changes are dealt will also have a positive
or negative effect.
The bargaining power of the buyer is the greatest among the 5 forces. All tenders
come from the Prime Contractors without them there would be no work for
construction steel fabricators.
19

Competition/ Rivalry
The building differences at this level of the industry tend to be driven by the
design of the building. The architects and engineers have a major input into the
design and therefore the product required from the steel fabricator. They
determine the quality, the sections and the overall shape and profile of the
building. Brand identity is not important or relevant at the steel fabrication level
but is very relevant for architects.
There are no switching costs in the industry at this level of construction. Sub
contractors for building high rise constructions are obtained through a tendering
process; therefore switching costs are not really relevant.
The diversity of competitors in the industry ranges from small locally owned
companies to large multinationals. Some companies are only steel fabricators;
others offer a range of engineering services. MK Trading has a great competitive
advantage over its competitors as it has other engineering as well as fabrication
services.
A lot of the time they dont know what price their competitors are quoting.
Therefore they need to maintain their solid reputation for quality and reliability.
Industry Key Players. The following firms are some of the key players in the
industry
Kirby Steel Builders : Kirby Building Systems is one of the largest pre-engineered steel
building (PEB) companies in the world and is a 100% subsidiary of Kuwait- based
multinational and multi-billion dollar business conglomerate - Alghanim Industries, one
of the largest privately-owned companies in the Middle East. Kirby pioneered the PEB
technology first in Middle East in 1976 and later in India in 1999. Its product list consists
of pre-engineered steel buildings (PEB) applicable for factories, warehouses, metro rails,
supermarkets, aircraft hangars, sports stadiums, auditoriums, etc. Other products include
structural steel, sandwich panels, storage solutions, Kirby Roof (KR), Kirby Wall (KW),
Kirby Deep Decking Panel and Kirby Standing Seam Panel (KSS-600).

20

Mammut Steel Builders: Founded in 1997 in Jebel Ali, Dubai and has grown to its
present position as a leading manufacturer of Pre-engineered Building in the Middle East.
Mammut has been on upward growth fuelled by investment in people and technology
which resulted in the construction of its factory in Hamriya Free Zone, Sharjah, and
UAE. Since 2001 Mammut has occupied a total covered area of 25000 square meter
factory in Hamriya which has the capacity to deliver a total of 7000 tons per month of
steel buildings and over 180000 square meters of polyurethane injected sandwich panels.
In April 2007 Emaar Industries and investments (EII) acquired a majority stake in
Mammut Building Systems FZC and has since been involved in assisting the company in
its expansion and growth plans.
Emaar Industries and investments (EII) is focused on maximizing its subsidiaries long
term value, exposing them to industrial best practices, providing a solid and flexible
capital base.

Zamil Steel Builders : Zamil Steel was founded in 1997 to design, manufacture and
supply top quality pre-engineered steel buildings for use as factory buildings,
warehouses, workshops, distribution centers, showrooms, aircraft hangars, schools, sports
halls, supermarkets, office buildings, car parking sheds, and virtually any one, two or
three storey building.

21

Competitor Analysis

Table 1
Competitor Analysis

Company MK Trading North West GSS
Years OF Experience Established in 1983
and hence over 30
years experience
with a better brand
value.
Established in 1995
and has nearly 20
years experience.
Established in 2004
and hence only 10
years experience.
Certification 1SO 9001-2008
certified
ISO 9001-2000
certified
No such certification
Area of the
Manufacturing plant
The area is upto
12000 sq m
The area is upto 8000
sq m.
The area is upto 5000
sq m.
Market Share 30% of the total
market share
22% of the total
market share
13% of the total
market share
Tons produced per
month
Nearly 600 tons are
produced monthly
Nearly 500 tons are
produced monthly
Nearly 400 tons are
produced monthly
Products
manufactured
Steel frames, fascias,
crane and eave
gutters, rafters,
sandwich panels,
purlins, bracings,
roof and cladding,
profile sheets and
steel shuttering.
Steel frames, purlins,
fascias, rafters, roof
and cladding, profile
sheets, crane
structure frame.
Steel frames, purlins,
fascias, rafters, crane
and eave gutters,
profile sheets.

CHAPTER 3
ORGANIZATIONAL ANALYSIS

23

Organizational Analysis
Overview Of The Organization

Background And History. Mustafa And Kamal Ashraf Trading Co Llc was established
in the year 1983 to facilitate its growth in Steel fabrication and Pre-Engineered industry in
Oman and GCC. MK Trading further expanded its services into civil contracting, MEP
contracting, sandwich panel manufacturing & switchgear manufacturing.
They design, fabricate and install steel buildings such as warehouses, multi-storeyed buildings
and filling stations for Shell Oman, Oman Oil & Al Maha and also have in depth experience in
fabrication of special products such as core-Loc shuttering and various steel shuttering works.
They are ISO 9001-2008 certified to ensure quality in various fields of operations.
The projects undertaken are on turnkey basis and provide complete end-to-end solution of our
clients requirements. These include Factory building, Extension of existing facility, Logistic
warehouses, Commercial complex, Food processing industry and Poultry Houses. The address
and the contact details of the organization is as given below
MUSTAFA AND KAMAL ASHRAF TRADING Co LLC
PO Box 2756 Ruwi,
Postal Code 112,
Sultanate of Oman
Telephone: 24812067, 24810725 & 24810471
Fax: 24811427 & 24810581
Email: mktho@omantel.net.om
Website: www.mktrad.com

The Vision And The Mission
Vision: MK Tradings vision is to become the trusted partner in the steel industry
renowned for excellence, leadership and greater values. To set benchmark for value creation
and excellence, building stronger relationship with clients based on tolerance understanding
and mutual cooperation. Providing equal opportunities for employees to grow within the
organization.
Mission: To exceed customer expectation by professional practice in engineering,
manufacturing, delivering high quality products and service. They concentrate in achieving
24

growth through diversification, acquisition and expansion and maintain a superior level of
integrity in interaction with business partners and associates. The employees serve the
customer with highest level of technical knowledge.

Values They Promote
I ntegrity: In MK the quality of having strong moral principles are integrated by
the core purpose of the company.
Commitment: They are dedicated to a policy and committed to achieve superior
quality and service in all our activities.
Teamwork: We strongly believe in combined effective action of a group in
pursuing common goal.
Perform: We constantly strive to achieve the highest possible standards in our day
to day work and in the quality of products and services we provide.

Products
Pre Engineered Steel Building :The PEB conceptor the Metal Building System
was first originated in the United States Of America after the World War II, as one of the
solutions to the demand of fast economic growth, and then transferred the concept to other
industrialised countries. It consists of a complete steel framed building system, with pre-
designed componenets to best suit the unique customer requirements. The final product is a
complete building shell with sub structural systems including mezzanine floors, crane
sysytems, canopies, fascias and interior partitions.
The Peb system offers multiple advantages to the end-user; the most notable are low initial
investment, fast construction time, low maintenance cost, large clear spans, infinite choice of
layouts, inherent resistance to earthquakes,ease of expansion and unique attractive appearance.
PEB System is since long a standard in commercial and industrial market segments such as
wearhouses, distribution centres and industrial facilities, are continuing to make greater
inroads into the low-rise sophisticated building market. Commercial office buildings are mixed
use facilities. Instituitional and governmental constructions are some of the areas where PEB
building systems are being used more and more. These buildings are increasingly recognized
as reliable, aesthetically pleasing, energy efficient and cost-effective building alternatives. The
25

sustainable green attributes of metal building systems with their recycled content and recycle-
ability makes them a natural choice for todays building owners and specifiers.
Purlins: In architecture, structural engineering or building, a purlin (or
historically purline, purloyne, purling, perling) is any longitudinal, horizontal, structural member
in a roof except a type of framing with what is called a crown plate.
In steel building construction, secondary members such as purlins (roof) and girts (wall) are
frequently cold-formed steel C, Z or U sections, (or mill rolled) C sections.
Cold formed members can be efficient on a weight basis relative to mill rolled sections for
secondary member applications. Additionally, Z sections can be nested for transportation
bundling and, on the building, lapped at the supports to develop a structurally efficient
continuous beam across multiple supports.
Rafters: A rafter is one of a series of sloped structural members (beams) that
extend from the ridge or hip to the wall plate, down slope perimeter or eave, and that are
designed to support the roof deck and its associated loads. A pair of rafters is a couple.
Fascias: Fascia is an architectural term for a band running horizontally and
situated vertically under a roof edge, or which forms the outer surface of a cornice, visible to an
observer. Typically consisting of a sheet metal.
The horizontal "fascia board" which caps the end of rafters outside a building may be used to
hold the rain gutter. The finished surface below the fascia and rafters is called the soffit or eave.
A rain gutter is a narrow channel, or trough, forming the component of a roof system which
collects and diverts rainwater shed by the roof. It is also known as an eaves trough, eaves
channel guttering or simply as a gutter.
The eave is the bottom edge of a roof. The eaves normally project beyond the side of the
building forming an overhang to throw water clear of the walls and may be highly decorated as
part of an architectural style.
Columns: Column or pillar in architecture and structural engineering is a
structural element that transmits, through compression, the weight of the structure above to other
structural elements below. In other words, a column is a compression member. The term column
applies especially to a large round support with a capital and base.
26

Beams: A beam is a structural element that is capable of
withstanding load primarily by resisting bending. The bending force induced into the material of
the beam as a result of the external loads, own weight, span and external reactions to these loads
is called a bending moment.
Braced Frames: A Braced Frame is a structural system which is designed
primarily to resist wind and earthquake forces. Members in a braced frame are designed to
working tension and compression, similar to a truss. Braced frames are almost always composed
of steel members.

Accessories
Roller shutters: A roller shutter, roller door or sectional overhead door is a type
of door or window shutter consisting of many horizontal slats (or sometimes bars or web
systems) hinged together. The door is raised to open it and lowered to close it. On large doors,
the action may be motorized. It provides protection against wind and rain.
Ridge Ventilators: A ridge vent is a type of vent installed at the peak of a
sloped roof which allows warm, humid air to escape a building's attic.
Louvers: A louver or Louvre is a window blind or shutter with horizontal slats that
are angled to admit light and air, but to keep out rain, direct sunshine, and noise. The angle of
the slats may be adjustable, usually in blinds and windows, or fixed.

Sandwich panels:
Aluminium composite panel (ACP) also aluminium composite material, (ACM) is a type
of flat panel that consists of two thin aluminium sheets bonded to a non-aluminium core.The
core is commonly low density polyethylene, or a mix of low density polyethylene and mineral
material to exhibit fire retardant properties.
Aluminium can be painted in any kind of colour, and ACPs are produced in a wide range of
metallic and non-metallic colours as well as patterns that imitate other materials, such
as wood or marble.

27

Services
Design Services:
They have a strong engineering strength to design cost effective buildings in the shortest
duration. All buildings are designed and manufactured to comply with American and
British Design codes and latest softwares. These include:
Staad pro - 3D Structural Analysis and Design Engineering Software
Metal building system (MBS) -Complete package from design, detailing, bill of
materials, shop drawings and erection drawings.
Tekla structures -Detailing Software
Autocad -Drafting software
Codes followed are :
Load on all buildings are applied in accordance with: IBC, MBMA & BS 5950.
Manufacturing & erection tolerance applied as per: METAL BUILDING SYSTEM
(MBS)
Hot rolled & Built-up designed as per: AISC, BS 5950.
Cold Formed member design as per: AISI.
Welding done in accordance with: AWS D.1.06.2006.

Manufacturing services :
Once the shop drawing released to factory, required materials identified from the stock
and allotted for each jobs as per the bill of quantity. Once the material is ready then it will
be fed to the CNC machines which are programmed with the appropriate values to
achieve the different parameters as per the requirement of each job. The cut plates are
then assembled and welded into place to form the final structure before being checked for
accuracy. After fabrication proper surface preparation is carried out and painted based on
the required specifications.
The skilled and experienced team of operations, fabricators and welders are equipped
with all the advanced machineries needed to carry out accurate and timely
manufacturing.

28

Erection and I nstallation:
They have fully dedicated erection team with all required tools and tackles for PEB &
other structural steel erections and follow proper safety at site. Our erection methodology
and practices are well appreciated by the clients. Once the anchor bolt cast in place and
cured, the major components of PEB are erected as primary and secondary structural
systems. After this the roof and wall sheeting will be installed along with the appropriate
accessories. They monitor and supervise the entire project until completion ensuring
timely delivery and excellent product quality.

Business Performance
The financial performance of the company for the last 5 years is given in the table below.

Table 2
Performance Business

YEAR APPROX
TURNOVER(OMANI
RIAL IN MILLION)
APPROX PROFIT(%
VALUE OF
TURNOVER)( IN
MILION)
2008-2009 15 10% of 15= 1.5
2009-2010 12 7.5% of 12= 0.9
2010-2011 10.5 6.25% of 10.5= 0.66
2011-2012 11.25 7% of 11.25=0.78
29

2012-2013 12 7% of 12= 0.84
Strength Of Manpower
Table 3
Strength Of Manpower

CATEGORY NUMBER OF EMPLOYEES
Managers 9
Engineers 22
General Support Staff 14
Supervisory Workforce 11
General Workforce 88
MALE EMPLOYEE
FEMALE EMPLOYEES
TOTAL MANPOWER:
138
6
144

30

Client And Consultant List

Client List :
Petroleum Development Oman
Saud Bahwan Group
Ministry of Defense
Oman Oil
Dhofar Municipality
LULU Hypermarket
Khimji Ramdas
Al Shadeed Steel
Shell Oman
Diwan of Royal Court
Oman Dental College
Modern Poultry Farm

Consultant List:
Al Hatmy Engineering Consultancy LLC
Jurong Engineering
Simon Engineering
Gulf Engineering Consultancy
Dawood Consultancy
Triad Oman Consultants International
Emaar Engineering Consultancy
Muscat Municipality
Scott Wilson Ltd

List Of Projects
31

Some of the projects completed :
Sheraton Extension
Toyota warehouse at Amrat
Oman Dental College
Omani Marble- Rusayl
Oman cable industry
Galfar headquarters at Ghala
Hydrauchloric Acid Plant at Sohar
Chips factory at Rusayl
Poultry farm at Barka
Production unit for Switz Group

Some of the ongoing projects :
Lulu Bowsher
Asain paints at Sohar
Lulu at Barka and Ibra
Youth complex at Salalah
Khimji extension

Recognition And Certification :
MK Trading is one of the first companies in Oman to receive ISO 9001 2008
quality certificate for our management system from TUV Nord Cert GMBH.

32

Organization Structure
Corporate Structure
DIRECTORS

GENERAL MANAGER
DIVISIONAL MANAGER
ADMIN AND FINANCE
MANAGER
ESTIMATION
MANAGER
MARKETING
MANAGER
MANAGER
PROJECT
AND
PLANNING
FINANCE
DEPARTMENT
HR
DEPARTMENT
PURCHASE
DEPARTMENT
DETAILING
MANAGER
DIRECTORS
33

Figure 4
Corporate Structure

Business And Departmental Structure
DIRECTORS

QUALITY
CONTROL
DEPARTMENT
DIVISIONAL MANAGER
MARKETING MANAGER
ESTIMATION ENGINEER
MANAGER
PROJECTS
PLANNING ENGINEER
PROJECTS
ENGINEER
PRODUCTION ENGINEER
DETAILING
ENGINEER
DESIGN DEPT
DRAUGHTSMAN
HR DEPT
ACCOUNTS HEAD
ACCOUNTS
DEPT
QUALITY CONTROL
PURCHASE DEPT
STORES
GENERAL MANAGER
ADMIN AND FINANCE
MANAGER
DIRECTOR
PROJECT COORDINATOR
34

Figure 5
Departmental Structure

Functional Analysis
Marketing Department

FABRICATION SUPERVISOR
ERECTION SUPERVISOR
Divisional Manager
Marketing Manager
Sales engineer Sales engineer
General Manager
35

Figure 6
Marketing Department

Marketing is considered to be the head of an organization. It is the most important
department in an organization. One of the important reasons behind the success of the
company is its marketing strategy compared to their rivals. The system followed by MK
Trading is very unique and it has been very effective. They deal with the clients either
directly or indirectly. The indirect dealings are maintained through consultants. Marketing
Department of MK Trading consists of senior marketing manager and two sales officers
working under him.
Functions of Marketing Department:
To maintain well established contacts and relationships with the clients, contractors
and consultants.
They should mainly focus on Business Development
Should adopt good marketing strategies in order to acquire the quotation from the
client.
The quotation will be given to few sub contractors at the same time for the same job
so its in the hands of the marketing and sales person to convince the client that the
job could be completed in the most optimized way at the least cost and thus acquire
that particular quotation.
He should help the client in making the proposal based on his technical knowledge.
Maintain trust, clarity and transparency with the clients, contractors and consultants
so that more jobs will be awarded in the future.
Keeps informed on competitors' selling policies, tactics, services, and prices offered.
Maintain a good accordance with the estimation and design department as a number
of meetings have to be attended for acquiring the quotation as a number of
negotiations have to be carried out.
36

Value engineering is to done to get better offers.
Under value engineering, then after submitting the offer, the job might have to be re-
submitted according to the planned changes made and in order to get the job.
Make sure that the payment terms are acceptable to the company as in if there is
enough cash flow and that there is good financial strength.

37

Figure 7
Marketing design data sheet
Source: Copy of the sample design sheet obtained from the Marketing Department

Data sheet details:
In order to acquire the quotation, the client will have given a particular design to the
38

consultant who then will give it to many sub contractors and will select the
optimized one.
Based on the design, a data sheet that is to be submitted by the Marketing and Sales
department to the estimation department.
All the details mentioned in the data sheet should be accurate.
Procedure:
The estimation and the design team will work on it and then submit the design for
acquiring the quotation.
The sales, estimation and design officers will then go for meetings, negotiations are
done with client and consultant
The sales person has to be well informed about the project and he should be in such
a position to convince the client to quote the job.
Main competitors:
These are some of the main competitors in Oman.
North-West steel company
Bilad Oman group
GSS Steel
Some of the other main competitors are from Dubai :
Zamil Steel
Kirby Steel
Mamut Steel
Mabani Steel

Pricing:
MK Trading offers quotations at low price compared to others. Its usually accepted
because of the good reputation and goodwill.
Technology:
The technology used is Computer Numerical Control. And automatic welding machines are
mostly used. With advancement in technology they are planning to generate 1000 tonnes
per month from 600 tonnes.
39

Marketing Strategies:
Respond immediately to the enquiries and take in more critical jobs.
The market share at present is 30% and they are planning to extend it to 50% by the
end of this financial year by starting to take international projects from Dubai and
African countries.
Weekly meetings are held along with weekly visit plans.
The jobs are awarded at a faster rate with a good economical design.

df

Estimation Department

GENERAL MANAGER
40

Figure 8
Estimation department

Estimating the cost of the project is the basic step in ensuring the successful implementation
of the proposed plans of action for any project. Estimating engineer helps in estimating the
cost of the project after studying and gathering all the relevant details about the project. The
estimation department of MK Trading consists of a senior estimation manager and two
JUNIOR
ESTIMATION
ENGINEER
JUNIOR
ESTIMATION
ENGINEER
41

junior engineers working under him.

Functions of Estimation Department:

Their main task is to acquire the enquiries from the sales engineers and to quote for
the same.
They identify all the requirements and make sure that all the elements are considered
and verified.
He confers with the engineers, contractors, clients, etc., on the adjustments or
changes that need to be made in the cost estimates and helps in determining the
feasibility of the project.
He determines the scope of work and contents of the project estimate by preparing a
list of bid quantities and items.
He is responsible for calculating the statistical data, prices of various materials, labor
cost, equipment, etc before submitting it to the contractor and client by discussing
with the design department.
Identify and correctly enter item numbers into the Quoting System, to include all
supporting documents.
Confer with Purchasing and Inventory to ensure needed materials are in stock or
available for purchase.
He should have direct contact with the client and consultant and should also be well
prepared for negotiations in order to acquire the quote for job.
The estimated cost and calculations will be carried out only in the estimated team
and wont be shared with any other department.
Any mistake in the estimation can lead to loss to the company.

42

Figure 9
Estimation Quotations
Source: the Copy of the Quotations send to the Main Contractor, Al Jood Trading.

43

Design Department

Figure 10
Design Department
Source: Primary Data

SENIOR DESIGN
ENGINEER
DESIGN ENGINEER
JUNIOR DESIGN
ENGINEER
JUNIOR DESIGN
ENGINEER
DRAUGHTSMAN
DETAILING
ENGINEER
DIVISIONAL MANAGER
44

Design department is split into three divisions starting with design then onto the
draughtsman and then where the final shop drawings are made which is the detailing team.
1. Design team:
Once after getting the enquiries then the design team will make the design according
to the specifications given.
If the contract is obtained then the design has to be again modified with any
respective changes to be made and much more accurate and precise details are given.
There are certain set of standards used based on the code of practice :
American
British
The client will give concept drawings with different views & elevations giving a
overall view of his requirement.
The details of the column length, the rafter length, the wind pressure, and many such
items are given in detail.
The design if done manually will take a long time and hence are done using
softwares. The 2 softwares used here are:
MBS (Metal Building Software)
STAAD Pro ( Structural Analysis & Design)
MBS Software:
It is custom made software for PEBs like warehouses and Industry
buildings.
It is time saving software as it does the design, drawings and details
in one go.
With this, the designer along with the design can generate the
drawings without the help of the draftsman.
STAAD Pro Software:
It can be designed for buildings of any complexity, not necessarily
PEBs.
The only limitation here is that the drawings have to be made for
45

each component separately whereas in MBS, everything could be
done together.

2. Draughtsman
They take inputs from the design team and then will prepare the drawings
using the drawing software - AUTOCAD,
They prepare line diagrams from the drawings given by the designers and
specifying each part like columns, rafters etc. with their actual dimensions,
quantity etc.
These are the drawings that are sent for approval to the consultant.
The consultant will review and will put stamp on it if its approved. In some
cases some comments are written which are to be modified and re-submitted,
Once these approved drawings are received then its sent to the detailing team.

3. Detailers:
He prepares two types of drawings by using TEKLA software.
Shop Drawings:
Shop drawings, also called detail drawings, are used to specify the
exact detailing requirements for fabricating each individual member
(or "piece") of a structure, and are used by the steel fabricator to
fabricate these members.
Complete shop drawings show material specifications, member sizes,
all required dimensions, welding, bolting, surface preparation
and painting requirements, and any other information required to
describe each completed member.
The shop drawings are intended for use by the fabrication shop, and
thus contain little or no information about the erection and installation
of the steel members they depict; this information belongs in the
erection drawings.

46

Erection Drawings:
Erection drawings are used to guide the steel erector on the
construction site ("in the field") as to where and how to erect the
fabricated steel members.
These drawings usually show dimensioned plans to locate the steel
members, and they often also show details with specific information
and requirements, including all work that must be done in the field
(such as bolting, welding or installing Anchor Bolts)
Since the erection drawings are intended for use in the field, they
contain very little specific information about the fabrication of any
individual steel member;

47

Figure 11
Design and Detailing drawing
Source : The copy of the drawings, provided to the client: Asian Paints Middle East,
the consultant: Semac & Partners and main contractor: Al Rawahi obtained from
Design Department

48

Production Department

Figure 12
Production Department

GENERAL MANAGER
DIVISIONAL MANAGER
MANAGER PROJECTS
PROJECT COORDINATOR
PROJECT ENGINEER
PLANNING ENGINEER
PRODUCTION ENGINEER
FABRICATION SUPERVISOR ERECTION SUPERVISOR
49

Manufacturing

Figure 13
Pre Engineered Building Structure
Source: Bansal Metallics, Adapted from
www.machineryforbuildings.com/preengineered buildings

Primary members consist of columns, rafters, beams etc. These are fabricated from high.
Strength Grade 50 or Grade 43 GI Plates. Plates are cut to size and shape. Built up sections
are made from these plates in Automatic Beam welding Line by submerged Arc Welding.
The most common primary framing systems are shown below. All are shown symmetrical
about the ridge line. Framing systems unsymmetrical about the ridge line and Multispan
Framing Systems with unequal width modules are possible but may require more
engineering time and possibly longer deliveries. Practically any frame geometry is possible.

50

Figure 14
Main Frames
Source: Bansal Metallics, Adapted from
www.machineryforbuildings.com/preengineered buildings

Steel Sheet fabrication: Sheet metal is metal formed into thin and flat pieces. It is
one of the fundamental forms used in metalworking, and can be cut and bent into a variety
of different shapes. Sheet metal is available in a variety of thickness and its thickness is
called its gauge. The gauge of sheet metal ranges from 30 gauge to about 8 gauge. The
higher the gauge, the thinner the sheet metal. The Steel material is available in the form of
cold rolled steel.
Sheet metal can be cut, punched, bent, welded and rolled to form all different structures.
They can be made into sheet metal enclosures, card cages, housings, front panels, chassis,
51

cabinets, parts and more.
Manufacturing Technology: The technologies involved are CNC punching,
shearing, plasma cutting, welding and sandblasting.
Production capacity: About 600 tonnes are produced in one month. In some cases
the work shift will be increased to two shifts per day hence doubling the production.
Sheet Metal Fabrication:
1. Shearing
Shear is a piece of sheet metal separated by applying a force to cause the material to
separate. When a great enough shearing force is applied, the shear stress in the material will
exceed the ultimate shear strength and the material will separate at the cut location. A punch
(or moving blade) is used to push the work piece against the die (or fixed blade), which is
fixed.
In cases of separating high thickness sheets then CNC plasma cutting machine is used.
Plasma cutting is a process that is used to cut steel and other metals of different thicknesses
(or sometimes other materials) using a plasma torch. In this process, an inert gas (in some
units, compressed air) is blown at high speed out of a nozzle; at the same time an electrical
arc is formed through that gas from the nozzle to the surface being cut, turning some of that
gas to plasma. The plasma is sufficiently hot to melt the metal being cut and moves
sufficiently fast to blow molten metal away from the cut.
2. Drilling
Drilling is a cutting process that uses a drill bit to cut or enlarge a hole of circular cross-
section in solid materials. The drill bit is a rotary cutting tool, often multipoint. The bit
is pressed against the work piece and rotated at rates from hundreds to thousands
of revolutions per minute. This forces the cutting edge against the work piece, cutting
off chips from the hole as it is drilled.
3. Built up section
The different materials like purlins, columns, rafters to be made into I beams. A Kentex
built up machine is used where the thickness of each plate is given and then they are
52

produced accordingly.
4. Assembling
The different units or plates generated will have to be joined according to the requirement.

5. Welding :
This is often done by melting the work pieces and adding a filler material to form a pool of
molten material (the weld pool) that cools to become a strong joint, with pressure sometimes
used in conjunction with heat, or by itself, to produce the weld.
It is done here mostly manually and in some cases using shielded arc welding.

6. Sand blasting
Sandblasting is a general term used to describe the act of propelling very fine bits of
material at high-velocity to clean or etch a surface. Sand used to be the most commonly used
material, but since the lung disease silicosis is caused by extended inhalation of the dust
created by sand, other materials are now used in its place. Here steel is been used to spray.

7. Painting
The final step is painting where according to the details of the drawings it is painted.

53

Figure 15
Steel Sheet Fabrication
Source: The pictures collected during the study at Rusayl Workshop.

54

Sandwich Panel: A sandwich-structured composite is a special class of composite
materials that is fabricated by attaching two thin but stiff skins to a lightweight but thick
core. The core material is normally low strength material, but its higher thickness provides
the sandwich composite with high bending stiffness with overall low density.
The chemical used for the thick core is Polyurethane with a density of 35-38 kg/m
3
.
The sandwich panels here can be of 4 types:
Galvanized iron (GI) on both top and bottom
Aluminum sheet on the top and bottom.
Top with profile and bottom with plane sheet
Flat panel on both top and bottom
The thickness of the sandwich panel can be 50mm or 100mm.

Figure 16
Sandwich Panel Production Pictures
Source: The pictures collected during the study at Mabellla Workshop

55

Finance Department

Figure 17
Finance Department

FINANCE MANAGER
CHIEF ACCOUNTANT
SENIOR ACCOUNTANT
ACCOUNT ASSISTANT ACCOUNT ASSISTANT
56

The activities expected from a finance department cover a wide range from basic bookkeeping to
providing information to assisting managers in making strategic decisions. What to expect from
the finance department will depend largely on factors such as how much involvement the
owner/manager has in the organization.
The major function of the finance department is to have an overall control of both inflow and
outflow of the financial resources.
Sources of funds:
The main sources of funds are:
I nternal sources of funds : The main sources of internal funds are the money
generated from the sales. Reserves are the sources of funds other than the income from sales.
Current losses are adjusted from these reserves.
External sources of funds: The sources of external funds are banks like Bank
Muscat, National Bank of Oman.

Functions of Finance Department
Prepare and present final accounts:
The Finance team are responsible at the end of each financial year, to record how
well the organisation has performed financially.
In order to show how well the organisation has performed the Trading, Profit and
Loss Account and the Balance Sheet are prepared.
The above documents will then be presented to Senior Management who will be
informed of how much money the organisation has made or lost over the year.
This helps management in making decisions for the future. For example, if they
need to cut costs they may decide to make some staff redundant. Or,
alternatively, if they have made large profits, they may decide to open up a new
store so that they can grow.
Paying Bills on behalf of the Organisation/Departments:
The Finance team are responsible for paying for all purchases made within the
organisation. The design department will submit a requisition form to the
57

Purchases department for new resources. This information is then passed on to the
Finance team who actually pay for the goods ordered.
When the supplier sends an invoice, the Finance team will check that it is correct.
For example, check the quantity ordered; the price of each item etc.
It is essential that all invoices received are paid promptly to the supplier. This
will help establish the supplier relationship which could lead to discounts and
trade credit being offered in the future.
The most common method of payment the Finance team use is a cheque.
The Finance team will ensure that an accurate record of all cheques paid is kept to
make sure that cash is being transferred appropriately.
The person who signs the cheque will be an authorised employee of the Finance
team. There will be a limited amount of employees who are allowed to sign
cheques to make sure that nobody is misusing the organisations cash.
Paying Employees Wages:
It is very important that the Finance Department works closely with the Human
Resources Department in ensuring that all employees are paid the correct amount
and on time.
The Human Resources Department informs the Finance Department exactly how
much each individual employee should receive at the end of each month/week.
Once the Finance team have processed this information in their records, the wages
are automatically paid into each individuals bank account.

58

Purchase And Stores Department

Figure 18
Purchase and Stores Department

PURCHASE HEAD
SENIOR ASSISTANT
OFFICE ASSISTANT OFFICE ASSISTANT
59

Purchase Procedures:

Purchase Requisition: It is a document through which the user department requests
the purchase manager to arrange for purchasing the material required. Each department
head prepares the purchase requisition and send it to the purchase manger on receipt of
purchase requisition report. The purchase manager will make necessary steps
for purchasing material that has been mentioned in the purchase requisition.
Plans are made by the purchase department by discussing with the procurement team
about what to purchase, how to purchase, when to purchase and so on.
Purchase manager invite quotations for the supply of materials from different suppliers.
Usually minimum 3 supplier enquiries are taken and the best from them is chosen.
Normally the orders are made in bulk quantity.
The approval is obtained from the Financial Manager The purchase manager then discuss
with the supplier about rate, quality, requirements, quantity, delivery time and
packaging. Then both parties agree that they will enter in to purchase contract according
to supply and payment.
Making of purchasing order: Six copies of the purchase order will be prepared and it is
signed by the Finance Manager.
The company will send two copies of local purchase order to the supplier, one copy to
the purchase department, one copy to the finance department, one copy to the stores
department and the last one will keep it in their running file. The supplier will send back
one copy, an invoice as a token of confirmation. A purchase order will contain the details
such as, the name of the material, quantity to be supplied, agreed rate, quality
specification, time in which it is to be supplied (delivery date), place of delivery, rate
whether inclusive of tax, packing of material, mode of transportation, option if the
material is not supplied on due date and mode of payment.
Generally, 90 per cent of the payment will be made in the next day. In case the delivery is
not made on due date, this 10 per cent will be adjusted.
Receiving and inspection of material: When the material arrives, the drivers have to
report at the gate. The guards will inform it to the purchase department who will
60

give permission to enter into the company. It is mostly taken directly to the sites where
the construction takes place.
The Goods Received Note (GRN) will be prepared and send it to the purchase
department. All the goods are checked and in case of any damage then the purchase
department will inform the supplier after getting the approval from the Financial
Manager.

Materials used for the manufacture of main frames and sandwich panels:
The most important material used is galvanized steel and mild steel which is mostly imported
from Dubai and in some cases from India, Korea etc.

Maintenance of stock:
Specifications of the materials required are communicated to the supplier who supplies the
materials as per specifications. The load of materials entering the factory will be registered at the
factory gate. The load is then sending to the store where the store officials check the materials for
visual defects. Maximum storage capacity of the store is 2000 tons. The company maintains a
minimum stock level of 15 days a minimum of one and a half months.

61

Figure 19
Purchase Request, Receipt Note and Order
Source: The copy of the Purchase Request, Order and Goods Receipt provided to
Khimji Permoglaze (Oman) obtained from Purchase Department

62

Human Resource Department

Figure 20
Human Resource Department

ADMINISTRATION
HEAD
SENIOR HR EXECUTIVE
ASSISTANT
OFFICER
ASSISTANT
OFFICER
ASSISTANT
OFFICER
PERSONNEL MANAGER
63

Human resource is of paramount importance for the success of any organization. It is a source of
strength, aid and, it is the most important asset of an organization. Human resources are the
wealth of an organization which can help it in achieving its goals. Human resource management
is the planning, organizing, directing and controlling of procurement ,development,
compensation, integration, maintenance and reproduction of human resources to the end of the
individual, organizational and societal objectives are accomplished. They spend about 10000
Oman Rial approx. per year for the welfare activities.Human resource management is the
qualitative improvement of human beings who are considered the most valuable assets of an
organization. It is the strategic approach to the acquisition, motivation, development and
management of the organizations human resources.
The primary objective of HRM is to ensure the satisfactory accomplishment of the objectives of
an organization and of its employees and management. It helps workers in accomplishing
individual and organizational goals. The HR manager organizes the HR department to carry out
the functions entrusted to him. In MK Trading personnel department functions are controlled by
Personnel Manager.
J ob Environment: Reporting to factory executive/head of personnel functions; however
keep rapport and liaison with section in chargers in all functional areas.
Current informal ways of working; practice of working on oral instructions and getting
such actions ratified in due course.
Want of documentation by way of proper system and procedures.
Habitual cases of absenteeism and in discipline.
The slow pace of work among the staff, as a part of past work practice
.
HR Policy: The basic principles of MK Trading human resource policies include:

Recruitment based solely on merit by following well-defined and systematic selection
procedures without discrimination.
Sustain motivated and quality work force through appropriate and fair performance
evaluation, reward and recognition systems.
64

Identify training needs within the organization and design and implement those need
based training programmes resulting in continuous up gradation of knowledge, skill and
attitudes of the employees.
Maintain a quality human resource management system plan, design, and train, equip
and motivate the department staff to meet this standard of expectation.
Recruitment: MK Tradings greatest asset is its employees. It is committed to attracting,
retaining, and developing the highest quality and most dedicated work force possible in
today's market. While recruiting new employees MK Trading takes adequate care to identify the
right candidates guard focus on recruiting candidates who display a high degree of learn ability,
i.e. candidates who are open to learn new things and supply the same in new situations we
also place significant importance on professional competence, academic excellence,
analytical ability, term work, leadership potential, communication and innovative skills, along
with a practical and structured to problem solving.
MK Trading follows Internal Recruitment technique as well as External Recruitment system.
External Recruitment is done by giving advertisement in newspapers, thorough recruitment
agencies.
Executives- Assistant Managers and above:
Recruitment is usually done through reference or consultants. CV is collected from the
candidates. It is then scrutinized and the list of the candidates is prepared based on the
CV. Interview is conducted under the observation of the HR and the respective
departmental HOD.
Staff supervisors, line employees:
Recruitment is done through reference or consultants.
Machine operators:
They are usually recruited from India and Bangladesh. In need of any workers like
welders etc. then the information seeking them would be sent to the authorized agents in
these places. They would then advertise in local newspapers and would conduct
interview. Based on the experience and skill level the process of recruitment takes place.
In case of any training required then the company has a tie-up with some of the training
institutes like National Training Institute LLC where 3 months training is given in
fabrication, welding etc.
65

Training: MK Trading human resource department believes that quality is the hallmark
of any successful venture. Quality training and development of human resource is realized
through Identifying training needs within the organization and designing and implementing those
need based training programs to bring about continuous up gradation of knowledge, skill and
employee attitudes.
A week long induction program for freshers. It is conducted by the HODs and the HR.
Development of top performer through leadership development programs aimed at
bringing up future leaders.
During the induction program the company policies, programs, procedures, rules and
regulations, plant overview, job overview are explained to the employees.
This kind of induction program helps the employees gain knowledge about the operations
and the works carried out.
Performance appraisal
The first step towards carrying out performance appraisal at MK Trading is the
evaluation of personal skills for the tasks assigned to an employee during the period
of appraisal .
To evaluate the performance ,different criteria like timeliness ,quality of work
carried out by the employee, customer satisfaction .peer satisfaction and business
potential is considered.
The personal skill of the employees are also evaluated based on their learning and
analytical ability ,communication skills, decision making, planning and organizing skills.
Each of these criteria is measured on a scale and then evaluated.
A performance appraisal system is a strong tool in the development of human resources
in the organization. It is considered as a mutual feedback to the management and
thereby help to decide the carrier growth, training needs and other human resources
development, interventions required for each of them thereby aiding their self-
development.
It is vitally important that every individual has a clear understanding of his or her work,
objectives, and responsibilities, because performance will measure against these.
66

Wages and salary administration:
In MK Trading, the managers analyze and interpret the needs of the employees so that
reward can be individually designed to satisfy their needs.
Here the workers are paid wages and the staff officers managers etc are paid salary. The
wage/ salary system which is followed is the time rate system.
Under this system workers are paid according to the work done during a certain period of
time. He is paid at the settled rate as soon as the time contracted for is spent.
The basic purpose of salary administration is to establish and maintain an equitable wage
and salary structure.
As benefits to the workers, the company provides co- operative stores with credit
facilities, canteen with subscribed food ,staff mess, staff recreation club, ambulance,
festival advance etc.
Attendance:
Every employee shall be given a ticket or attendance card free of cost, showing his
number or name or classification etc. They shall punch their attendance card at the
punching machine and deliver up their card or ticket at the place provided in the time
office before the commencement of each session of the shift in a day.
In case of workmen exempted from availing rest interval, shall punch his card before the
commencement of the shift and soon after his shift work is over.
Provided with the purpose of if a workman fails to punch his attendance card, he shall
lose his attendance for the period unless he makes the report to the manager of his failure
within two hours.
Grievance handling: The company has a Grievance Handling Committee.
On receiving a complaint Committee will sent a memo to the concerned parties. Parties
should give reply within 24 hours. If the Committee is not satisfied with the reply,
they can make enquiry about the complaint. If anyone found guilty, in the enquiry,
they may be punished with four days suspension, increment cutting, dismissal, court
action etc.
If the employee is not satisfied with the redressal then he can file case in the labor court.
67

Quality Control Department

Figure 21
Quality Control Department

GENERAL MANAGER
DIVISIONAL MANAGER
QUALITY CONTROL
ENGINEER
QUALITY CONTROL
ENGINEER
68

MK Trading Company LLC provides engineering services including design, fabrication, supply
and erection of steel structure.
The aim is to provide service to the customer comparable with the highest quality in their field
confirming to specified requirements and cost effective product in the shortest time by the
adoption of the Right First Time principle.
Functions of this department is to ensure that the quality objectives of the firm are relevant to
meet the requirements of the product quality and are periodically measured and compared
against product quality requirement. A major purpose of this department is to ensure that the
quality policy of the firm is conformity with the objectives of this department.
Key Elements of the Quality policy are:
To exceed the customer expectations by ensuring appropriate two-way communication to
enable them to fully understand and fulfill their requirements.
Setting measurable targets to monitor the achievement towards pre-determined
objectives.
To identify the performance against these targets to identify progress.
To provide appropriate resources and a suitable working environment
To monitor, audit and review the systems to identify areas to continually performance.
The company recognizes that their staff is the single most important resource in the achievement
of this policy and so encourage a positive and open culture by providing development and
training.
The quality policy will ensure that the customer requirements are recognized and that consistent
control of requirements is established and maintained.
Objectives of the Quality Department:
To establish and maintain a Quality Management System which gives a control in the
organization.
To reduce the delay in the submission of tenders and quotations.
To reduce the delay in getting the approval drawings from the client by 10%
To reduce the delay in preparing fabrication drawings by 10%
69

To reduce the time taken in issuing LPO (Local Purchase Order) from 10 days to 7 days.
To reduce the error in manufacturing by 5%
To reduce the error at site by 10%
To reduce the delay in the delivery of material as well as reduce multi delivery by 10%
To reduce the losing jobs on tender by 20%
To increase turn over by 10%
To increase the quality assurance of the products and reduce the consumption of
electricity by 3%
To reduce the wastage in workshop by 10%
Procedures for Quality Assurance:
Control of Documents: This procedure outlines the system of preparation,
authorization, storage, issue, review and modification of documents or data relating to the
Quality Management System developed by the company.
Control of Records: To ensure that all required valid records are maintained
with proper identification in the right location for an easy access. It applies to all the records and
incoming/ outgoing correspondence of the company.
Procedure for Corrective and Preventive Action: The purpose is to control
corrective and preventive action activities required as a result of actual or potential non-
conformances. The non- fulfillment of requirement is called non-conformance.
The action taken to eliminate the cause of an existing non-conformance, defect or other
undesirable situation in order to avoid recurrence is the corrective action. The action taken to
eliminate the cause of potential non-conformance, defect or other undesirable situation in order
to avoid occurrence.
Emergency Response Procedure: Emergency is the abnormal occurrence which
cannot be handled or controlled by the equipment or personnel available in the immediate area.
Fire at office
Fall from a height
Electric shock

70

Procedure for Internal Audit: Prior to the audit an opening meeting may be
held with the relevant Department Head during which the auditor/ team will explain the scope
of the audit, the method of reporting and confirm the closing meeting.
During the audit the auditor may observe areas within the system where there may be potential
for non- conformance or improvement. Any such information shall be recorded. All actual non-
conformance detected during the audit shall be recorded using a non-conformance report form.
Upon the completion of the audit the auditor/team shall prepare an audit report. The auditor/team
shall communicate the results of the audit, including any observations and incidents of non-
conformance, to the relevant staff, the Department Head during the closing of the meeting.
The auditor shall take the corrective or preventive action as required. Then a follow up audit
shall be prepared to verify the implementation and efficiency of the action taken.

Management Review Procedure : To review the performance Integrated
Management System(IMS) , effectiveness and suitability, continuous improvements and
ensuring its continuing capability to meet the requirements of the Product Quality,
Environmental Performance, Occupational Health and Safety Management.
Company has set up SMART (Specific. Measurable, Achievable, Realistic and Time based)
objectives at all levels within the organization based on company level objectives which are
based on:
Views, needs and expectations of the owners, customers, society and staff
Outputs of the management review meetings, planning and internal audit results
Process and product performance
Competitor analysis

71

Safety Department

Figure 22
Safety Department

GENERAL MANAGER
DIVISIONAL
MANAGER
SAFETY ENGINEER
HEAD
SAFETY SUPERVISOR SAFETY SUPERVISOR
72

MK Trading is fully committed to the Health, Safety, Environment Protection and security of the
employees and workers of the organization. It is the companys policy to provide healthy, safe
and secure working conditions and give due consideration to the preservation of the environment
in accordance with relevant standards and guidelines and complies with the applicable national
and international laws, rules and regulations.
It shall conduct its activities and operations with the following objectives:
No harm to people
Provide for safe practices and safe environment
Establish safeguards against all identified threats and risks.
Protection of the environment.
MK Trading shall ensure that these objectives are achieved by:
Maintaining the industry standards of safety and security consciousness, personal
discipline and individual accountability by adherence to an adequate and documented
system of training.
Actively promoting employee participation in measures aimed at improving health,
safety, security and protecting the environment
Keeping all personnel informed of any known or potential hazards and threats that may
affect themselves, their colleagues, their construction workplace or the environment by
pertinent documentation.
Ensuring adherence at all times to the documented operating procedures by system of
internal verification of activities and procedures.
Continuously reviewing all mandatory rules, regulations, industry code and guidelines
that are relevant for the specific projects carried out.
Take all practicable steps to ensure that the contractors work in line with the procedures.

73

Organizational Analysis
Swot Analysis: The basic objective of the SWOT analysis is to provide a framework to
reflect on the ability to overcome barriers and to avail of opportunities emerging in the changing
environment, the diagnosis of the strength and weakness can be fruitfully on if the environment
factors and the market conditions are considered always with internal capabilities.
SWOT analysis is an important tool to find the Strength, Weakness, Opportunities and Threats.
These factors reveal the internal and external factors that affect the company.Strength,
Weakness, Opportunities and Threats are the elements or the key factors that influence the
survival and development of the organization. The following are the SWOT analysis of MK
Trading:
Strengths:
Close relationship with customers, consultants and main contractors.
Have got a good reputation due to a large number of years of experience
They have got a good brand image.
Well qualified and technically skilled manpower.
Efficient use of input materials and expertise in recycling.
High degree of differentiation, specialization and functional flexibility giving the ability
to adapt to the changes in customer preferences immediately.
The company has a sophisticated quality control system.
The companys goodwill is an asset.
ISO certification
Weakness:
Only limited exporting.
High level of dependency on imported raw materials increases vulnerability against
availability and price fluctuations.
74

Labor intensity is causing high labor costs as the employees and work force are
demanding more with the price fluctuations.

Opportunities:
Strengthen the relationship with the customers through the use of IT.
Use group purchasing with other steel fabricators to gain a discount.
Acquire steel supplier.
Use of new technology based equipments is rising.
Growing demand for steel fabricated buildings.

Threats:
Increasing availability of substitutes in the market
Existing competitor or new entrant able to produce and tender at much lower price.
Prime contractor could become a competitor.
Overseas player enter the market

CHAPTER FOUR
OBSERVATION AND CONCLUSION

75

Observation and Conclusion

Observation
The demand for steel fabricated buildings is rising and the clients prefer to approach MK
Trading due to its goodwill and reputation.
A very good employee-employer relationship is maintained.
The employees and workers are very much dedicated to work as there is no unnecessary
indulgement in any talks other than company matters.
Each employee is always free to contact directly with the divisional manager at any time.
As the company meets the changing preference of the customer, it has a healthy customer
relationship.
The company has ISO 9001-2008 certification.
The market share is 30% and they are looking forward to increase to 50%
The marketing and sales team has got a very good communication with the contractors,
consultants and clients.
The employees and workers are given enough number of sick leaves and vocational
holidays.
The company has got a very good infrastructure along with good recreational facilities to
the employees are provided.
There is no wastage of the raw materials as all the left overs sold as scrap.

76

Suggestions
It is advisable to provide a better advertising for attracting more clients and consultants.
The safety of the workers should be taken more into consideration by ensuring they are
wearing safety helmets and boots while at work.
Company can introduce a customer care service for handling complaints and suggestions.
It is recommended to consider each employee as an individual and provide support
during personal crisis.
Monthly counseling could be provided to the employees.
The canteen facility is not at a walk able distance and so each employee has to depend on
their own vehicles to go and have food. In order to avoid this, the canteen could be
shifted within the company locality.
The Research and Development unit could be made as a whole separate unit instead of
having their functions done by the administration team.
Better performance appraisal systems and grievance handling could be provided.
The financial grants could be increased based on the experience and performance.
The management should respond quickly to the leave application of the employees.

77

Conclusion
MK Trading is one of the well performing companies in the Sultanate of Oman, engaged in the
process of steel fabrication. The company was established to meet the growing need of the Pre
Engineered Building. It is reaching new boundaries with its performance. In due course they
have acquired and developed fully fledged capacity in design, fabrication and erection of any
kind of steel structure in infrastructure are as well as industrial development area.
From the study conducted I was able to understand that the customer tastes and preferences are
changing, the competitors are bringing in new sales promotion strategies, and our company is
adapting well to these changes and able to keep up the trust of the customers due to its brand
image, quality ensured and timely finishing of the projects undertaken. The analysis of each
department was carried out and I came to know that the various processes are carried out and
controlled by skilled and efficient staff.
With the cooperation of the staff and the extended interaction of the employees and the
management of the company, it has given in depth knowledge of the organization by giving
information about the manufacturing process, the various departmental functions, and the
organizational structure and also about the interdependence between the employees and the
departments.

78

BIBLIOGRAPHY
Kotler, Philip. (1985). Marketing Management. New Delhi: Prentice Hall of India Pvt. Limited.
Metal Bulletin Focus. (2013). Middle East Steel Supplement, UAE. Retrieved from
www.metalbulletin.com.
MK Trading Company, (2014). Company Profile, Muscat. Retrieved from www.mktrad.com.
SCI, (2012) .Steel Construction Info, UK. Retrieved from www.steelconstruction.info
The Business Year, (2013) Diversification Dreams- Oman Economy, Oman. Retrieved from
www.thebusinessyear.com.
Times Of Oman, (2013).Growth of Market in 2013, Muscat. Retrieved from
www.timesofoman.com
World Steel Association,(2013), Iron and Steel Statistics , Belgium Retrieved from
www.worldsteel.org/statistics-archive 2013
.

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AN ORGANIZATIONAL STUDY ON

MK TRADING CO. LLC, WADI AL KABIR,

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