Preface

As Electrical engineering undergraduates, we would have to have the ability in

various sectors like power, machines, installation etc Despite the sector we join,
we will have to face managerial problems, and also to work in an organization it
would be highly important to have a good knowledge regarding management
theories and practical use of them.
This report contains about one of the leading companies in Sri Lanka related to
the business in footwear and tyres. It is non-other than, D.Samsons Industries Pvt
Ltd. The report presents about the corporate culture, environment of the
company and the business they are dealing with. As an undergraduate I have
taken an attempt to present the most important features of the company in brief,
which is related to the management of the organization.
First chapter contains the background of the organization and type of the
business involved. In the Second chapter I have shared the details about the
cooperate culture and the internal and external environment of the organization.
The impact to the organization by the market elements is discussed in the third
chapter. In the fourth chapter I have stated the goals of the company for their
future business activities. The decision making process and the CSR activities are
discussed in the 5th and 6th chapters. Small conclusion is stated at the end in the
7th chapter.

Acknowledgement
First my sincere thanks goes to Dr. Thesara Jayawardane who was conducting the lecture series of
Industrial management and marketing for past few weeks. It was a kind of very important subject for
the engineering students which contains a lot of theories and other subject materials. But she was
doing the lectures confidently and was able to convey the relevant subject matters interestingly.
Next I have to thank Mr. Upul Ketipearachchi, the production manager, Bataduwa main factory, DSI
Pvt. Ltd. For giving me the valuable information regarding the organization, its management and the
environment of the factory. Except the details I have taken from the official web site of the
organization, all the other organizational behaviours and managerial information are directly taken
from him. Finally I have to thank Mr.Pasan Ketipearachchi who was a trainee at DSI Pvt. Ltd for
sharing his experience regarding the organization.

Contents
1.0 Background of the organization/ type of business involved......................................4
1.1 Vision..................................................................................................................... 4
1.2 Mission................................................................................................................... 4
2.0 The corporate culture and environment of the organization.....................................5
2.1 INTERNAL ENVIRONMENT....................................................................................... 5
2.2 GENERAL ENVIRONMENT........................................................................................ 5
2.3 TASK ENVIRONMENT............................................................................................... 6
3.0 The impact of the internal and external market elements upon the selected
Organization.................................................................................................................... 7
4.0 Goals and planning for future.................................................................................... 8
5.0 The decision making process in the selected organization........................................9
6.0 CSR activities carried out by the selected organization..........................................10
7.0 Conclusion............................................................................................................... 10

1.0 Background of the organization/ type of business involved

D.Samsons Industries Pvt Ltd. is one of the largest family owned groups of companies in Sri Lanka,
which serves both domestic and international customers for 52 years. The key products of the
organization are footwear and bicycle tyres. These products are manufactured in company owned
factories and at the same time imported items are also sold. There are about 75 brands which are sold
in more than 200 showrooms. DSI products are exported to more than 40 countries worldwide.
D. Samsons industry was founded by late Mr.D.S.Rajapakshe who lost his parents and struggled in the
life with several businesses containing apparel and footwear. After running through some hard times,
he has identified the opportunities he had and worked through the success. As a result he could open a
slipper factory himself in Galle. He always having that humanity and good management of the
employees through brotherhood took the company to the victorious path of achieving goals such as
SLIM Brand Excellence Award, NCE Export Awards etc
Except the key products, there are 15 sectors in which the company does the business with the staff of
around 9000. Brushes, clay tiles, hydro power, rubber products, rubber compounding, bikes are some
of the above sectors. The DSI Samsons group acts as the local representative for international brands,
such as Reebok, Fila, Clarks, Puma, Dell and Avira. Brands like Oliveira are manufactured at DSI
factories and sold under the brand name of Oliveira.

1.1 Vision

To be the leading contributor to the socio-economic development of Sri Lanka.

1.2 Mission

To invest in manufacturing and services, meeting highest international standards to our global
customers in conventional and niche markets.

2.0 The corporate culture and environment of the organization

As most of the employees in the organization work in factories, their cultures are made especially for
the disciplined behaviour inside of the factories as safety is the most valuable thing. Normally all the
workers follow the same dress code except the managers. But when it comes to the dining area all the
workers from management level to labourers, have the same place to share. And if they take their meal
from factory buffet, the same food is there. According to my point of view, I think it is very important
for an organization to have such equity inside their factories to make a good attitude among the
workers.
2.1 INTERNAL ENVIRONMENT

For the ease of manage, at D.Samson Industries Pvt Ltd. Has a director board under the governance of
the chairman. These directors are heading the each section of the organization. For each factory there is
a General Manager and a board of managers. Then comes the executives and foremen. Around 3000
employees are working under this management hierarchy.

Chairman

Director Board (Finance, IT, Marketing etc.)

5 General Managers for 5 factories

Finance, Production etc Managers for each factory

Executives

Foremen
5

2.2 GENERAL ENVIRONMENT

2.2.1 Technological

In the manufacturing areas the technology is very high as the machines are updated with the newest
technology. Most of the machinery is Chinese. For the printing in slippers and other footwear, the
latest technology is used as the print should be long lasting one for the quality of products.
There is an integrated computer network for all the managing level to foremen so as they could get the
details about financial, production details of the factory. All the factory area is covered by a free WIFI
network where the people have the access to internet.
2.2.2 Legal/Political

As the manufacturing processes are highly deal with the rubber and various chemicals, the legal and
political decisions are very important. Especially when investing for new factories the legal
background, the acts should be highly concerned. The amount of chemicals that the workers are
exposed is highly limited by the government policies for the protection of labourers. So that those
people should have given sufficient masks, guards according to the rules and regulations. These
factories produce the highest share of school uniform shoes. So that the legal/political decisions on
school uniforms is highly important to the production.
2.2.3 Natural

Rubber is a product of rubber tree and it is the main raw material in the production chain. And in the
process there are several chemicals are used. So that the water and other waste, contain all those
chemicals. Hence it could affect the water ways and have to concern all the natural effects that can be
occurred before putting them out from the factory.
2.2.4 Socio-Cultural

Socio cultural effects would take part mainly when designing the products. It is very important to have
a wide range of knowledge about the trends and new fashions not only in domestic market, but also in
the international market when designing footwear. And also it is important to get know the population
density in various categories like gender; age etc because it will be important to get an idea about
the quantity that they produce in different categories.

2.3 TASK ENVIRONMENT

2.3.1 Customers

The main customer of D.Samsons Industries Pvt Ltd is the DSS, (D. Samsons and sons) which is the
parent company. Majority of production orders are made under the request of DSS. But the designing
to packing all are done here. Although there is a parent company, there are some direct purchasing

customers too. For an example the Oliveira footwear are made in DSI factories for the showrooms of
Odel.
2.3.2 Suppliers

The main raw material, rubber is taken from domestic customers and sometimes artificial rubber is
imported from several countries. (Mostly from Malaysia) it is due to the rubber price fluctuations in

the market. The other important thing which goes with the rubber industry is chemicals. Most of the
chemicals are imported from Malaysian suppliers.
2.3.3 Labour Market

For the factory there are several methods to take labourers. The people from neighbouring areas
preferred as the transportation cost would be less. Usually the references are also taken into account. If
the parents are already working in the organization, there is a chance for their children to work there. If
more people are needed, newspaper article will be put and applied people will be selected after an
interview.
2.3.4 Competitors

Since DSI Pvt Ltd supplies majority their products to according to the requirements DSS, competition
has become less. But still they are the people who design the footwear and despite supplying to DSS
they have their direct customers, they have to face the competition with other producers. In that point
of view, they have a lot of competitors from domestic producers and also with the people who do the
business of importing from other countries like Singapore and sell island wide. So that they have to
design their products which can compete with all those domestic and imported brands.

3.0 The impact of the internal and external market elements upon
Organization

the selected

Since it is company which Manu fact the products and at the same time buying and selling is done, the
changes in various market elements can affect or impact the organization. Technological issues is
one of them. Since the factory manufacturing lines consists with machines, the development of
technology can affect the manufacturing processes very much. Except the machines there are numbers
of labours who contributes to the above process. When the technology develops and machine power
become cheaper whereas the labour market is not good, management can easily shift the manual work
into automated processes. And this vice versa. As above mentioned technology and labour market can
impact the organisation.
The main purpose of business is having profit. To have a profit, the goods we produce, should be sold
out to the customers. So customers are the most important part of a business. So the product,
7

designing, quality, price etc should be shaped according to the customers needs. So customers is
one of the most important market elements that can impact upon the organisation. In D.Samsons Pvt
Ltd point of view, the main customer is DSS (D.Samsons and sons) which is the parent organization.
Except that, they have their own business with some other companies. Although the main customer is
the parent company, they have to concern the choice of end customers too.

In some situations, due to various reasons (Like advertising campaigns) the local customers tend to
buy the products which are imported to the market. Sometimes the other brand names and products are
well promoted, or as rumours spread or the newest fashions come under those brand names, trends
are made to use those imported goods. May be this would happen only for a selected age range, but
still these socio-cultural issues would be a threat to the company, if an instant action would have not
been taken. Last couple of years, there were a lot of Malaysian footwear in the market, but as a huge
stand still organisation in Sri Lanka, DSI faced it successfully. They have changed their designs and
defended their market share.
At the same time, if the price of the products of the company is not bearable for the customers, they
would not be able to have an interest towards the products. The price tag should contain a profit
margin, but still the marketing could be done with it. So the price tag should be well decided
considering the economic status of the customers. Again the above example could be taken, as the
Malaysian products were having a large price tag, DSI changed theirs into a pretty lower value in order
to make the local customers interested in. As above socio-cultural and economic status of end
customers are extremely important and have their impacts towards the organization.
Competitors are very important for the customers to have a variety, and good quality products. At the
same time, innovations are taken place as there is a competition too. When some different product is
introduced by a competitor, the existing products have to be changed to defend the market share of the
company. In Sri Lankan footwear market there are a lot of domestic and imported products are there so
that the competition is high. So that the marketing people should always have an eye at the other
products in the market. Once wedge heels were introduced to the market, other competitors made their
business through it. So that DSI Company has took a decision to produce wedge heels. (as per the
orders by DSS). Like that competitors can affect the organisation.

4.0 Goals and planning for future

As one of the major manufacturing companies in Sri Lanka, the ultimate goal of the company is to be
the largest footwear manufacturer in South Asia. In the path of succeeding this goal, they concern
8

about the environmental issues and economic issues as a country. They work towards to supply all the
school uniform footwear of Sri Lankan students at a cheaper price tag and also with sufficient
subsidies to the students who still have difficulties with purchasing them.

They have researches going on to recycle the footwear material wastes. They have planned to reuse the
materials for their production as it would bring environmental benefits. If their researches become a
success, they could probably recycle the materials and produce the goods in a cheaper way.
In all the activities and dealings they shall be guided by a humanistic approach of the founder of
organization. They always treat the community at large as their own stakeholder with a deep sense of
social responsibility, sharing with them the benefits.

5.0 The decision making process in the selected organization.

Decision making is one of the main parameters in an organization which usually depends on the
culture of the company and the scale. Sometimes the decision making process of a small company
does not tally with the same of a substantially huge company or a group. Different organizations have
derived their own methods of decision making processes as their own convenience. In the world there
are 2 most recognized methods as procedure based one and other one is people based which is used
in D.Samsons Industries Pvt Ltd.
People based decision making processes is more convenient here as the organization consists of
factories. All the small scale decision taking authority has given to the separate divisions and separate
personals. As an example, the production manager can take the relevant actions regarding the
production of the particular factory. If some kind of a problem occurred in a machine, or a production
line, the relevant Forman has the authority to take the necessary actions to get it into work again
without taking permission from the higher level officers. But all of them should be maintenance
decisions, not newly commencements. If so, the managerial goes for collective decision making
processes where members from all the levels of hierarchy in the organization are got together and
discussed about the relevant project.
The organization usually decentralise the authority for their own convenience and the ease of
management. Since they have given the authority, they have put a good faith on the employees. All the

labourers have to undergo a training period before getting it a permanent job and they will be given
appropriate tasks with responsibilities.
According to my view, one of the major advantages of having a process like this is, the necessary
actions could be taken at once. In some organizations it would be very hard to complete at least a very
small scale modification, as the permission of higher levels of management should be taken before the
maintenance done. Sometimes the losses would get higher due to the delay of decision making and

approving. Production organizations or factories should have this kind of decentralized approach. The
disadvantage of it is, the responsibility of lower levels is high and the managing levels could have the
trust on lower levels. These do not applicable only for the commissioning projects.

6.0 CSR activities carried out by the selected organization

As a huge organization in Sri Lanka, DSI Pvt Ltd has been conducting corporate social responsibility
activities (CSR) in various situations. One of them is the cleaning project at Galle fortress.
For the 50th anniversary of DSI family, on 11th march 2012, they have organized a massive cleaning up
campaign in the Old Dutch fort, Galle, with the participation of 3000 members of the footwear
manufacturing factories. They have celebrated their anniversary with an idea of social services is the
most important. And with the activity carried out, the idea of the value of Galle fortress would be
speeded out among the society. And at the same time, their name also will be promoted.
The DSI Samson Group strongly believes in the minimisation of environmental damage and makes
every effort to abide by eco-friendly norms and procedures. Samson Reclaim Rubbers Ltd was created
with the sole objective of recycling scrap tyres and other rubber waste to produce trivial yet essential
rubber products such as mats, dock fenders, and conveyor belts. This is not only a money making
strategy but also a corporate service to the society.

7.0 Conclusion

Attending the lectures and learning the subject matters is important to gain
knowledge on the subject. And at the same time, interviewing industrial people
and making such reports can improve the knowledge and would be easy to learn
the theories taught in the class. DSI is one of the major organizations in the
country and hence it was a nice experience to talk regarding the business they
handle and their management techniques. I got a wide knowledge about the
10

operations done in the industry and how they perform in the management in a
real environment.

References
DSI

Samson

Group.

2015.

DSI

Samson

Group.

[ONLINE]

Available

at:

http://www.dsi.lk/. [Accessed 28 July 2015].

11