INDUSTRIAL SICKNESS OF BANGLADESH

CAUSES OF SICKNESS:

The causes of industrial sickness industries are many. They may develop from faulty project planning and appraisal and defective implementation, weaknesses in various functional areas like finance, production, marketing, personnel and management. The environmental factors like social, economic, and political conditions and governmental policy and control also contributes to sickness of industrial enterprises.

FACTORS RESPONSIBLE FOR INDUSTRIAL SICKNESS:

There are external factors as well as internal factors which contribute to sickness. External factors beyond the control of management include those oil which the unit has no direct control. External factors are considered as under

Ø Development of over capacity in the particular sub-sector.

Ø Continuation of unexpected adverse market conditions.

Ø Infrastructural bottlenecks

Ø Recessionary trends

Ø Rise in cost of production but no corresponding increase in prices of finished goods due to regulatory policy.

Ø Adverse industrial relations.

Ø Changes in government policy with regard to subsidies, excise duty, and import/export restrictions.

Ø Non-availability of critical resources like raw materials, power and skilled labour etc.

Ø Imbalance between demand and- supply.

On the other hand the internal factors relate to management and different functional areas and are controlled by the respective industrial unit. Internal factors are considered as under:

Ø Poor capacity utilization

Ø Poor operation of plant and equipment

Ø Obsolete production technology

Ø Poor financial management

Ø Inadequate capacity to handle export process~ and bureaucratic complexities.

It seems that sickness is primarily caused by internal factors which are mostly related to mismanagement in various operational areas e.g. technical, financial, marketing -and external relations etc.