Bangladesh's Corporate World

Everyone starts up a business hoping that it will become something huge someday. Every day there are hundreds of new businesses being opened across the globe including Bangladesh but only a few make it to the top. An ideal business has a number of characteristics that makes it successful in the long run. Here are nine such characteristics: 1. It does not require a big start up investment on machineries and equipment to make business work. Nevertheless, it tightens up the capital. Yes it is true that every business needs some initial investment. But in this modern era, the startup capital should not be very large. 2. An ideal business does not require 16 or 18 hours of work per day. Dedication and attention is important for any business to stand up properly. An ideal business gives plenty of time to the professionals attach to it to take rest and plan for the next day. 3. An ideal business requires no large number of employees. Having employees means hiring them, firing them and

The World Economic Forum has recently published a survey report in which it is stated that the three factors-inadequate infrastructure, corruption and inefficient bureaucracy are the main barriers for the entrepreneurs in Bangladesh. But even than, some companies like Beximco Group are doing well. They have expanded business in many sectors and became successful. According to the Global Competitiveness Report for 2014-15, 21 percent of businesses have no adequate supply of infrastructures and it is the top barrier of doing business in Bangladesh. Among the top three barriers, corruption places in the second as 20.7% businesses points at it while inefficient government bureaucracy being mentioned by 15.3%. According to the experts of Center for Policy Dialogue (CPD), these top factors are the most problematic factors for doing business for long time as there is an inadequate effort to lessen the extent of the effect of those factors. However, the entrepreneurs predicts better econom

The world is progressing at an outstanding pace. Bringing about packets of ideas with every blink of an eye, the business world is churning with rapid motions of newer perspectives. Interestingly, in the past few decades, business sector of Bangladesh has been rising at an impressive rate. Till the last decade, various Bangladeshi companies followed the age old axiom:”better, faster, cheaper”. But things started to happen rapidly in the past few years. Business innovations that could produce a faster sum of products started to thrive. Companies like Citicell, , Pran, ACI, Beximco etc. left no stones unturned to obtain maximum quantity of products.  Also came new ideas. Initiating from new styles to technological breakthrough, search for the ultimate business formula started and continued. Observing the success, the competitors caught up and adapted these method soon enough. Unfortunately, the criteria of core differentiation between them reached a minimum. Gradually the entrepreneu

In this modern age of technology any individual can communicate with anyone else within the matter of seconds thanks to cellphones and internet. Many Bangladeshi businessmen utilize this opportunity to communicate with their partners and clients via technology rather than meeting them face to face. But is it really the best way to go for a successful business? Some of the most successful corporate houses of Bangladesh were established in an era where face to face meeting was the only option for communication with clients and other associates. Even after several decades those companies are still going strong. The key factor behind this incredible success is just one simple fact- face to face meeting. The impact of social media and technology is obvious in this age. But here are some major reasons why face to face communication beats any other method for a successful business: A face is better than a thousand voices In the recent past there has been an upsurge of online s

People find business marketing of small starting money tough to establish having less option to make it successful. That is why most people think it as a waste of time and money and never tries to set up such types of business. This is found more realistic when the people try to hire professionals or “Branding” consultant but can never make it up having a bad experience. If we talk about hiring consultant for marketing, a person need to be sure about the consultant that he knows the most efficient way of marketing. But sometimes, money is a problem. Not everybody has the ability to consult someone but using various approach ways and planning the work can be done without facing any economic difficulties. Three Small Business Marketing Strategies For Success Firstly the service given by the business people should be so good that people like and appreciate it. Most people say that they will give the best service but it is not as easy as it seems. Also the way they are thinking is

Bangladesh is a low-income country. But it has a stable economy. Bangladesh has the second most ‘pro-capitalist population’ in the developing world to give another boost to the economy. Between 2004 and 2014 the average GDP growth rate was 6%. Now it is over 6.5%. Since independence in 1971 the economy of Bangladesh has made a gradual progress. Now Bangladesh is considered as part of the Next Eleven Emerging Market and one of the Frontier Five. Before 1980, the economy was largely dependent on jute and jute products. From 1990s onward, textile, garment, pharmaceuticals, shipbuilding ceramics, leather goods and electronics came forward. Beximco, ACI, Square Group are the market leaders. And today, the economy of Bangladesh is led by export-oriented industrialization including the garment industry and the textile industry. Garment industries contribute the most. Up to 6-8% of the total growth of the country comes from the sector. Now, there are more than 5000 garment industries acro

Fashion is a popular style or practice, especially in clothing, footwear, accessories and makeup. Fashion is a distinctive and often habitual trend in the style in which a person dresses up. Fashion industry is the product of modern age. In the past tailors and dressmakers were undoubtedly responsible for the innovation of fashion and changing fashion as well. Actually fashion depends on taste of people. For this reason fashion varies from region to region.  Before 20th century most of the dresses were handmade. At the beginning of 20th century fashion magazines were more responsible for adopting and changing fashion. But at present media, social network, fashion websites play the most important role for changing fashion. Though the people of Bangladesh have a unique fashion of their own, they also follow the fashion of many countries. For this there is huge opportunity for the fashion industry to grow. As a result, depending on the taste of Bangladeshi people a huge number of

Bangladesh is a low-income country. But it has a stable economy. Bangladesh has the second most ‘pro-capitalist population’ in the developing world to give another boost to the economy. Between 2004 and 2014 the average GDP growth rate was 6%. Since independence in 1971 the economy of Bangladesh has made a gradual progress. Now Bangladesh is considered as part of the Next Eleven Emerging Market and one of the Frontier Five. Before 1980, the economy was largely dependent on jute and jute products. From 1990s onward, textile, garment, pharmaceuticals, shipbuilding ceramics, leather goods and electronics came forward. And today, the economy of Bangladesh is led by export-oriented industrialization including the garment industry and the textile industry. Garment industries contribute the most. Up to 6-8% of the total growth of the country comes from the sector. Now, there are more than 5000 garment industries across the country. The BGMEA said textile exports are expected to rise to U

Business leaders and industrialists are worried about new VAT law as there is confusion over it. At a discussion organised by Large Taxpayers Unit of the revenue authority, Prime Minister and Awami League President Sheikh Hasina’s private sector affairs adviser Salman F Rahman said “I, on behalf of the business community, welcome the new VAT law, scheduled to be implemented from July 1. But I want to request the NBR to make sure that the revenue officials show a flexible attitude in the first 3-4 months of implementation of the law and consider it as transitional period.” Salman F Rahman was present in the discussion as the chief guest. The NBR chairman Md Nojibur Rahman was on the chair. Responding to the call, NBR chairman assured that the new VAT law will be hassle-free. In the discussion, Salman F Rahman further said the law was initially planned to be implemented from July 2015 but it was delayed by the government amid demands from businesspeople. In the meantime, the

Along with Beximco Group, Square Group, Pran Group, PHP Family is contributing immensely to the economic progress of Bangladesh. Beximco Group and Square Group are the top private sector players but companies like PHP Family are coming up. Sufi Mohammed Mizanur Rahman, an ex banker, established PHP Group which was later re-named as PHS Family. PHP Float Glass is a concern of PHP group and is the pioneer of glass industries in the country. Now PHP float glass industry is the largest glass producer. Ample success in Glass sector along with other indusial sector, PHP group is contributing much to the development of the country. PHP float glass industry limited is Chittagong based sister concern of PHP group. Built on 30-acres of land, with a total investment of Tk 300 crore, the PHP Float Glass Industry at Barabkunda of Sitakunda in Chittagong launched its commercial production in 2005.It produces various types of glass according to local demands. It produces clear-glass sheet of 2MM

Nasir Group is one of the largest industrial conglomerates in Bangladesh. The industries include industrial glass, tobacco, printing and packages, light engineering, melamine. It is one of the leading industries in glass manufacturing sector of the country. The company started its journey in 1977. Now this group expands in every industrial sectors of Bangladesh like tobacco, melamine, printing and packaging and footwear. Recently it started producing energy saving light bulbs. Nasir group has a great role in socio-economic development of the country. Dominance in Glass Sector Glass is one of the products of Nasir Group of Industry. Nasir group has a vital role to make Bangladesh self-sufficient in glass sector. This company provides a large portion of glasses to meet country’s demand. Nasir group started float glass production in 2005. The company built its glass manufacturing factory in Gazipur at a cost of Tk.300 crore. Nasir Glass now holds more than 40 percent of the total mark

Bangladesh army is planning to set up more branches of its charitable school Proyash at all of its cantonments across the country in a bid to educate children with special needs. Proyash, started with “Special child, special rights” slogan, is headquartered in Dhaka cantonment. 35% of its students are from military family. Institutions those help the army in carrying out this noble includes leaving company in Bangladesh, Beximco Group . The authorities started enrolling civilians’ children from 2009 and now 65% students of the school are from civilians.  Authorities spend 1500 taka per students and teachers’ salaries along with other expenditure are met from the donation which comes from different organizations including the army. A multidisciplinary team assesses the student while special Medicare and education are planned after identifying their needs through the audiology tests. The school has an area of 5.44 acres of land with 491 students. This school is not only aiming to

Bangladesh Supermarket Owners’ Association, otherwise known as BSOA requested NBR for implementing a uniform VAT rate for all retail super shops of the country. This request is made so that they can continue the business in full pace. The government applies a 4% VAT on sales of various supermarkets including Agora, Shwapno and Meena Bazar while authorities imposed a package VAT system to general shops according to their sizes and locations. Bangladesh Supermarket Owners’ Association prefers paying VAT on per square feet rate. Customers do not like to pay 4% VAT on sales because general shops pay a flat VAT rate. The BSOA demanded the government either withdraws 4% VAT or implement package VAT system. It says in its statement that otherwise this discrimination will gradually destroy this sector. In comparison with similar markets, in Indonesia, there are 14000 stores of only two chain supermarkets and 3000 are in India. Even, in Sri Lanka, there are 1000 stores while Bangladesh h

An old newspaper advertisement.  British American Tobacco Bangladesh brought Capstan to Bangladesh and it was a leading brand for quite sometimes. The brand however was originally launched by W. D. & H. O. Wills in 1894. 

The ceramic industry in the country is facing challenges like GSP suspension, high import duty on raw materials, and hike in gas tariff. But even than companies like Shinepukur Ceramics Limited, which is a member of Beximco Group and RAK Ceramics (Bangladesh) Ltd. are doing quite well. Beximco Group particularly played a major role in development of the sector. This industry faced a lot of changes for last some years but still it is developing day by day. The local ceramics industries can supply 78% of local demands and it is able supply 100% of demands. But this industry may face much difficulty due to high import duty of raw materials, hike in gas price hike. And if authorities reduce such duty, then ceramic industries will be able to fulfill the local demand of tiles. The country imports the raw materials for ceramic industries from India, Japan, Thailand, Vietnam, Germany and New Zealand. The ceramic companies in the country need to assume the proper market strategies in a bi

The finance ministry said it would provide 10,000 electronic cash registers at purchase price to business including shops and restaurants in a bid to curb VAT dodging in retail sales. The authorities made the use of ECR mandatory 11 types of businesses in 2008. But the use of this ECR remains low due to lack of monitoring. The businesses could suppress the numbers and dodge the customer paid VAT if they do not use this device which keeps a data on sales. That’s why the shops without this device have tendency to sell goods at lower price than that of shops with ECRs.