Truly Responsible Enterprise database



Company:  Bakosfa Kft. 
Title:  Thinking in a responsible way is not the privilege of the ’big ones’ 
Mission and vision of the company:  Our philosophy is that we could only stay successful in the long term if we could create not only profit, but also values both for our customers and employees. We have been working on a way of creation that cannot really be copied and imitated thus our company is less influenced by the multi national chains.
 
Transport:  The shipping distance is considered to be of national level in our sector. Our company keeps contact mostly with suppliers from Budapest and Pest County. After checking the complete list of suppliers we have got the following result: 8-10 suppliers from Buda (distance of 5-10 km), 7 suppliers from Pest (distance of 15-20 km)
6-8 suppliers from Pest County (distance of 5-20 km) and only one national supplier in 200-km distance.
In the last two years two suppliers have been exchanged for two other ones found in the district and a business relationship has been made with Dunavitex, wholesaling company, which is only 500-meter far from our site.
Our 5-vehicle fleet is serviced and tested in the district.

Competitive prices are expected. In case of small price differences, these are balanced by the spared distance and time.

Delivery aspects are constantly taken into consideration of supplies. We are open thus offers of new suppliers can raise our attention. There are no ‘inherited’ positions for suppliers, thus if a company in the surrounding could offer products at more or less the same price as others we would choose it. This way not only the environment is less burdened, but the so-called local patriotism is also strengthened, in other words, companies in our surrounding can get a chance and we hope that they would once do the same to us.
Supply is centralised, which means that all the products arrive at our company site in Budafok and they are distributed from here to our shops.

The route of the company car is coordinated by a colleague who is responsible to inform the workers about it thus the different departments could harmonise their deliveries and orders with the route of the car. GPS is not yet used.
 
Fairness:  We have a good relationship with our ‘competitors’ in this sector. We are open to each other; we share success, problems, and experience. We do not really think of each other as competitors, because each of us provides different services and product-range
We do not have a significant relationship with multinational companies, we are watching them and trying to learn from them.

Our company do not produce or sell anything which could be harmful for health or could damage the life standard of families. In our opinion DIY could be the sport of the 21st century considering the difficult economical situation and the easily available information, brochures and manuals. In addition, we provide money-saving alternatives, so anybody can have the experience of creating.

In our wood panel cutting department, sizing of the panels are led by an optimalising program, thus the minimal amount of waste wood is left. Plus we try to utilise the waste-wood for smaller producing activities – such as small pieces of furniture, lathes. Shavings for sales are produced from those materials which cannot even be used this way. Shavings left behind are burnt up, which ensures the heating of our 5000 m2 building for the whole year. Gas is not used, the wood-machines are electrical.

During crisis our policy was to keep the number of the labour-force and employment steady. We have met this expectation so far, since we have not dismissed any colleagues: out of 48 people, 5 have been working here for more than 20 years, 14 for more than 10 years, and 25 people for more than 5 years.
The workers can let the owner know their problems and ideas on the forum of ‘ProblemBox’. In ethical cases they could turn to the designated ombudsman that forwards the problem in an anonym way to the leader in charge.
All the workers are congratulated on the birthday by the owner. The colleagues being employed for the longest time are even surprised by a breakfast or lunch. Those who have been working for the company for more than 5 years could ask for a present which could make their working conditions more comfortable – such as boots, glasses, and orthopaedic shoes.
There is a canteen in our company site where freshly made warm dishes are available everyday, lunch is supported by the company by 50%, thus a 3-course diner is available for 400 HUF.

The rate of the workers at the company is the following: 39% are over 45 years old; 35% are women; 4 people are in part-time; 2 mentally disabled people; 1 person is coming back from child care period; 3 pensioners who are present at the company receptions.

There have not been any labour court cases against our company in these 24 years.
 
Economism:  There have more wood-ware shops been closed in the last few years, which apparently strengthens our business, but we are aware that it is more and more difficult to remain competitive with the incredible capital and organisation of the multi-national companies, which dominate more than the 50 % of the market. This rate is 90 % in the Western-European countries, in other words it means that smaller shops are slowly getting out of the market. Unfortunately, the same tendency can be seen in Hungary as well, the traditional wood-ware shops are losing market due to the intensive spread of chains and the competition even between each other. At the same time, the forming of DIY-chains, so typical abroad, has not yet started in Hungary. This is the reason why Ezermester Magyar Barkács Kft (Handyman Hungarian DIY Ltd) has been set up, of which aim is to form and develop the cooperation of the shops in the DIY market. The owners of all the DIY shops in Hungary must be responsible to establish this chain. We are in charge of protecting our market and obliged to represent the Hungarian producers, to protect and secure our values and win the customers showing our advantages (knowledge, short distance, personal contact, meeting personal expectations, providing quality-range, fast reaction, etc)
The chain has been based on franchise system since 2011 and it counts 18 shops at present.
 
Size:  The business is 25 years old in 2011. The originally 1-person business counts 48 people at present, which is the maximum manageable number regarding present operation. Its central site was founded in 2001 in Budafok, the company has not grown since then. Since this is basically a family-run company opening new sites is not possible, or else it would not increase efficiency. The aim is to make, rearrange, or up-to date shops in the closest surrounding to have more product-lines, services available for customers. Our main ambition is to make both wood and metal product-lines available in each shop, one of our shops is being rearranged for this purpose. Instead of working on more developments, we are convinced that future lies in collaborating with other wood-ware shop owners to work in a chain-like way and to use the presently existing possibilities in a more effective way.

The gross turnovers of the company:
2005: 407M HUF
2006: 448M HUF
2007: 473M HUF
2008: 451M HUF
2009: 450M HUF
2010: 420M HUF

 
Product:  We consider our company as the Mecca of do-it-yourselvers, because not only the necessary materials are available but there are also several services provided, thus we could meet all kinds of expectations. Joiners help customers with mixed structured work. Furniture and articles used everyday are produced, which are necessary both in everyday life and industrial fields. There is a 1 or 2-year warrantee for all the furniture produced and locking systems depending on the lifetime of the product and the requirements of the customer. A well-produced piece of furniture could last for decades, thus it is of great value, while a cheap pre-packed ‘instant’ piece of furniture must be changed in a few years.
We undertake not only producing but maintaining furniture as well. In these cases the amount of profit is not significant, yet a valuable piece of furniture is worth being ‘rescued’, because it could serve its owner even for a lifetime. Wood-ware shops also undertake maintaining locks, coding locking systems, which could also lengthen their lifetime by years.

Wood panel cutting is also performed for brought materials. We most work with panels made from shavings, which are made from recycled wood.
Environment-friendly products can also be found in the range , such as paints, stains, polishes, thus customers could choose.
Since we think that we produce necessary products for daily use, thus we create value, so we put our products on the top of the list giving between 5-15.
 
Stories:  It is an appreciation that several employees of the company have been working here for more than 10 years. It is advisable to make these ‘old’ colleagues use as the weapon of the company and turn them into allies. Thus they help the leader’s work with their useful ideas and flow of information, so the mutual work as a team determines the right path: help to choose the proper size and represent the proper product. These allies can be considered to be a two-way communicational channel ensuring the flow of information in both ways. Colleagues are aware of the fact that for keeping this level of production and sales a different policy is needed than the one which has helped the company to get here. An idea that worked yesterday at a department may need changes today. The most important principle of a businessman in the 21st century is to be flexibility. Not only the leaders but the employees must also be flexible. Our employees can also perform different tasks if necessary. They also understand the importance of flexibility, this way we could react and meet daily challenges fast.
 
Challenges:  Customers and clients have never had so much information available before. The world of internet brings prices in our home, companies providing the same products and services can be found easily. This makes the market more competitive, which provides advantages to the customers. A customer has never been fought so hard for before. Our company must fight not only the local competitors, but also with Europe and the world. It sounds exaggeration, but we meet products from China, Taiwan, Korea, Mexico on daily basis, the European Chains are more and more influential in the market, and all these have an effect on forming our price-calculating policy. Time and information are proved to be the most determining aspects. Time must pass for the price-sensitive customers in order that they take other aspects into consideration besides the price of the product, such as the company in question, the source of the product, or its environment friendliness. Naturally, time cannot only solve the above mentioned problem; the proper information must be forwarded in a proper way mostly via different media or in forms of campaigns. People must become aware of the importance of the responsible way of thinking, in other words if they as conscious customers choose in a conscious way, then companies will also react and behave in a responsible way.

 
Benefits:  Loyal colleagues and suppliers, a company and leadership that customers can trust.
Responsible company philosophy pointing ahead. People and customers are becoming more and more conscious thus those companies adapting the responsible way of working gradually building it in their company philosophy will have advantages.
 
My place in the ‘small world’:  Organising furniture market, second-hand trucking in different towns every month. Collecting old unused furniture by trucks from the countryside and offering other pieces of furniture as an exchange.

Furniture ‘recycle’, make a tender where one could enter with ideas of ‘recycling’ pieces of furniture (e.g. shelves from tables; dining table from sewing table). Organising a week - ‘new from old’ courses where inhabitants can renovate the collected furniture for authorities and public places (re-polish, paint etc) depending on their fantasy and skills.
It could also be an interesting and useful experience to let people bring their own materials or bought at us and let them work in our workshops and use our machines and tools. Each workshop would be led by an expert who could give help to do-it-yourselvers. It could be like copy-general shops where you can make more simple tasks alone or an assistant could do it for you if you want to.
 
Industry:  bútoripar 
Place of implementation:  Budapest 
Date of implementation:  Since 1986 
Founding year of the company:  1986 
Related website:  http:\\www.bakosfa.hu 
Contact person:  Miklós Bakos
Owner
+36 30 949 6443
info[at]bakossecurity.hu