Vous êtes sur la page 1sur 79

MINISTRY OF EDUCATION OF THE RUSSIAN FEDERATION

PEOPLES FRIENDSHIP UNIVERSITY OF RUSSIA


FACULTY OF ENGINEERING
Engineering Business and Industrial Management Department
Stream: Management
Specialization: Innovation in Business Creation and Management

MASTER'S DISSERTATION

CORPORATE CULTURE AND COMPANY EFFECTIVENESS: BIMAN


BANGLADESH AIRLINES

Student: Murshed Helal


Email: helal@mail.ru
Country: Bangladesh
Scientific supervisor: Ivanova T.B.
Chairman, Professor:
Alekseenko V.B.

Moscow 2015
1

To Alekseenko V.B.,
Head of Engineering Business and
Industrial Management Department
From: Murshed Helal
Group: IBM-204

APPLICATION
I kindly request you to approve as my Master's Dissertation scientific supervisor
Ivanova Tatiana Barisovna

The Topic of the Master Dissertation: CORPORATE CULTURE AND COMPANY


EFFECTIVENESS: BIMAN BANGLADESH AIRLINES

Date:
_______________________
Signature

Calculation and Explicatory Report for the Master's Dissertation


Student: Murshed Helal
Faculty: Engineering
Engineering Business and Industrial Management Department
Specialty: 080200

Topic of the Master Dissertation


CORPORATE CULTURE AND COMPANY EFFECTIVENESS: BIMAN
BANGLADESH AIRLINES

Student: Murshed Helal ( Email : helal@mail.ru)


Scientific supervisor:
PhD, Professor: Ivanova. T. B

Allow the Master dissertation


to be defended at the State Examination Commission
Chairman of Engineering Business and Industrial Management Department
Professor: Alekseenko V.B.
Date____________________

PEOPLES FRIENDSHIP UNIVERSITY OF RUSSIA


FACULTY OF ENGINEERING
Engineering Business and Industrial Management Department
Specialty: 080200 Management
Group: IBM -204

Master's Dissertation
ASSIGNMENT
Student: Murshed Helal
1. Topic of the dissertation: CORPORATE CULTURE AND COMPANY
EFFECTIVENESS: BIMAN BANGLADESH AIRLINES
2. Delivery date of the finished dissertation: __May 2015
3. Bench-mark data: Statistical data
4. Table of Contents CORPORATE CULTURE AND COMPANY
EFFECTIVENESS: BIMAN BANGLADESH AIRLINES
1) Introduction
2) Chapter 1. Theoretical approaches to corporate culture
3) Chapter 2. Corporate culture of Biman Bangladesh Airlines
4) Chapter 3. Technologies of creating an effective corporate culture
5) Conclusions
6) Appendix
7) Bibliography

Date and signature


_______________________
4

9) Scientific supervisor
Parts
Introduction

Scientific
supervisor (SS)
Ivanova T.B.

Chapter 1.

Ivanova T.B.

Chapter 2.

Ivanova T.B.

Chapter 3.

Ivanova T.B.

SS signature

Students
signature

Calendar Plan
NN Stages of the Master Dissertation

1.

Presentation Deadline
for every stage

Literature search, literature review,


bibliography compiling
Compiling Master Dissertation Plan and its
confirmation by the scientific supervisor

05.01.2015

3.

Presentation of the Introduction

15.02.2015

4.

Part 1 presentation of the whole material

12.03.2015

5.

Systematization and analysis of the empirical data

30.03.2015

6.
7.

Collection of additional data


Analysis of the information obtained

12.04.2015
03.04.2015

2.

Scientific supervisors approval of the conclusions


Provision of corrections, alterations and
recommendations
10. Speech writing
11. Acknowledgments (external and internal)
12. Thesis and pre-defense reviews presentation to the
Department
8.
9.

08.02.2015

07.04.2015
08.04.2015
10.05.2015
14.05.2015

Student: __________________
Scientific supervisor__________________________________
Head of the Engineering Business and
Management Department ___________________________________

PEOPLES FRIENDSHIP UNIVERSITY OF RUSSIA


FACULTY OF ENGINEERING
ENGINEERING BUSINESS AND INDUSTRIAL MANAGEMENT
DEPARTMENT

CORPORATE CULTURE AND COMPANY EFFECTIVENESS: BIMAN


BANGLADESH AIRLINES

MASTER'S THESIS
BY

MURSHED HELAL ( Email: helal@mail.ru)


080200-MANAGEMENT

Moscow 2015
7

CORPORATE CULTURE AND COMPANY EFFECTIVENESS: BIMAN


BANGLADESH AIRLINES

Table of Contents
Introduction

.....................................................

10

CHAPTER 1: Theoretical approaches to corporate culture


1.1 Definition of Corporate Culture

................................

13

1.2 Hofstedes cultural dimensions of Bangladesh ......................

15

1.3 The Denison Organizational Culture Survey (DOCS) ..........

18

1.4 Importance of effective corporate culture

...........................

23

CHAPTER 2: Corporate culture of Biman Bangladesh Airlines


2.1.1 Biman Bangladesh Airlines General information ............

26

2.1.2 Biman Bangladesh Airlines Corporate structure ................

35

2.2.1 SWOT analysis of Biman Bangladesh Airlines ................

36

2.2.2 PESTLE analysis

38

...............................................

2.3.1 Online Marketing Strategies

........................................... 41

2.3.2 Customers Relationship Management ( CRM) ...................... 46


2.3.3 Corporate Social Responsibility (CSR) ................................ 48
2.3.4 Innovation in Biman Bangladesh Airlines .............................. 51
2.2.4 The importance of Market Research

................................ 53

2.3.5 Human Resource Management (HRM) ............................... 55

2.4 Analysis of passenger evaluation .............................

57
8

CHAPTER 3: Technologies of creating an effective corporate culture


3.1 How to create an Innovative Corporate Culture ....................... 63
3.2 How to reach company effectiveness

.................................... 66

Conclusions

...................................................... 69

Appendix

....................................................... 70

Bibliography

............................................... 76

DECLARATION

...................................................

79

Introduction
Corporate culture refers to the beliefs and values that have existed in an organization
for a long time, and to the beliefs of the staff and the foreseen value of their work that
will influence their attitudes and behavior. Corporate culture is rooted in an
organization's goals, strategies, structure, and approaches to labor, customers,
investors, and the greater community. Administrators usually adjust their leadership
behavior to accomplish the mission of the organization, and this could influence the
employees' job satisfaction. The knowledge of corporate culture has increasingly
received attention in many field of study. Traditionally, implications of corporate
culture can be understood through a qualitative approach since it believed that
characteristics of corporate culture are complex and difficult to measure as a concept.
As an executive, identifying, understanding and the influencing the organizational
culture can ensure corporate agility and success. As a potential employee, catching a
glimpse of the true culture of an organization will help one decide if the company is a
place where one can contribute and flourish. In, both cases misunderstanding culture
can lead to disaster.
The purpose of this paper is to analyze the corporate culture of Biman Bangladesh
Airlines and to suggest the technologies of making it effective. In this study, it is to
understand organization's vision, values, norms, symbols, assumptions, passengers
feedback etc. We also pay special attention to peculiarities of cross-cultural
communication between different ethnic groups gathered in multinational companies.
The analysis will play a significant role to understand the drawbacks of company and
apply effective strategies to minimize the bottleneck and modernize the company to
maximize the market volume and profit.
Methods and methodology applied in this paper can be used by top managers and HRdepartments of multinational companies in their aspiration to bring fresh air to the
companys environment making it effective and attractive for the personnel and newcomers. The material suggested can be also used in academic sphere.
Relevance of the topic
Due to globalization and global economic affaire the world has been turned into a
global village. People around the world today are moving throughout the world either
for commerce and industrial, tourism and employment or for education and research
purposes. Due to the aforementioned factors, airline industry around the globe is
10

growing and developing rapidly. For survival and forward movement in this ever
competitive global business arena, customers satisfaction through quality of products
and service is very significant factor for impressive market share and profitability. To
pave the way for very many effective and efficient strategies and methods are applied
within the business. Effective corporate culture is one of the most effective and
influential business strategies whose proper implementation accelerates organizational
effectiveness and staff's capabilities to turn the company modern, dynamic and
profitable.
Practical importance of the research
Application of the effective corporate culture on Biman Bangladesh Airlines will
modernize and profitable the sector and promote & diversify the economic activities:
Dynamic, diversify & modernize the Biman Bangladesh Airlines;
Promote organizational effectiveness & standard of service
Save, comfortable and reliable service
Achieve customers' confidence & increase market share
Increased public & private investment;
Increase competitive advantage and staffs capability
The aim of the research
To create and propose an effective & utmost corporate culture for Biman Bangladesh
Airlines
Tasks
- To assay theoretical and methodological approaches of airlines;
To anatomize the key issues affecting the effectiveness of Biman Bangladesh Airlines
To analyze the economic, organizational & service oriented approaches of Biman
Bangladesh Airlines
To identify and advocate key policy instruments (organizational changes, regulatory
measures and economic incentive).
11

To analyze the experience of other modern airlines.


To propose an effective & innovative approach to Biman Bangladesh Airlines.
Object of the research
Economic activity of Biman Bangladesh Airlines: implementation and exercise of
innovative corporate culture may serve as a tool of effectiveness, modernization and
dynamism o
Subject of the research
Corporate culture of the company
Research hypothesis
Proper implementation of effective & innovative corporate culture would turn the
Biman Bangladesh Airlines into modern, dynamic and profitable sectors from
ineffective, obsolete and lose sector
Methodology of Accumulating Data for the Research
Three types of procedures were persuaded to accumulate the data;
Primary data collection
Secondary data collection &
Final data collection
Methods of research: Competitive analysis, SWAT analysis, PEST Analysis & 5C
analysis, questionnaires.

12

Chapter 1: Theoretical approaches to corporate culture


1.1 Definition of Corporate Culture
For Bangladeshi business environment the term corporate culture is relative new in
spite of the fact that in Western countries proper research and application of this
concept began in 80-th. The notion corporate culture came to substitute the wellknown notion of organizational culture or organizational behavior. Organizational
culture and organizational behavior are factors which have strong impact on
companys effectiveness as they create motivational environment for productive
activity with minimum expenses. The question about how to increase productivity has
been occupying constantly minds of researchers in different countries.
The appearance of term corporate culture was also connected with a new approach
to the main means of production. Human resources sprung to the first place as the
main productive power. New methods were required for management and
development of human resources, especially in the spheres based on knowledge and
intellectual capacity. Why? Our brains are able to create miracles: discoveries,
innovation, and novelty. Very often the creator is not even conscious of the
importance of his invention. He doesnt even know the real value of his results so it is
easy to take advantage of his ignorance to make profit of it. It is imposable to give
him the equal remuneration. Creating an innovative environment which is reached by
corporate culture as an inner sphere of any company the owner can get unlimited
profit through uniting all employees for fulfilling the mission and strategies of the
organization. In other words, innovative corporate culture was found to be the most
effective instrument among the management tools that help to create a favorable
atmosphere for increasing companys effectiveness and improving its market
positions.
The first attempts of corporate culture and national mentality research were made by
Western scientists in 1930th. It was a group of American archeologists headed by
Margareta Mid who offered new and effective instruments to manage people through
the knowledge of their national culture which was generated under the influence of
numerous factors:
- Geographic position of the nation or ethnic group;
- Climate;
13

- Mode of life:
- Land fertility and water;
- Longitude of socio-economic formations;
- Religion, etc.
The research into the above mentioned and other factors even let this group help the
American government to cope with Japan at the end of the 2nd World War turning
this country into the American friend and alien. Unfortunately the scientific activity of
this group is not much open as its members worked for secret American institutions
but their contribution to the research of national mentality of different ethnics is
priceless.
In the 3d quarter of the XX century there appeared numerous definitions of corporate
culture, formulated by different scientists. Then it was G. Hofstadter in the middle of
70th that made a serious analytical work for IBM and its branches in different
countries of the world where the company came across the lack of understating in
cross-cultural communication.
Hofstadter offered his own methodology of research which became well-spread over
the world, paying attention to national features of business behavior.
All of them have their share in the definition of corporate culture: - Organizational or
corporate culture is the pattern of values, norms, beliefs, attitudes and assumptions
that may not have been articulated but shape the ways in which people in
organizations behave and things get done. Though this definition uses corporate
culture as a synonym to organizational culture as the way the personnel and
management are to work together, there is a certain difference between these two
notions. The notion corporate culture is wider as it adds the necessity for every
member of the company to feel protected by the management.
Culture is an abstract concept applied across multiple academic and social fields with
changing contextual meanings. The rapid increase in attention paid to the subject
garnered fundamental disagreements about what culture is and how it should be
studied. Not only is culture difficult to definitively describe, but organizations and
their leaders are in constant pursuit of a good or right or functionally effective
culture. Most can agree that it exists and that its effects are important. Edgar Schein
(2004) concurs that attempts to define culture are not only numerous but vary
14

dramatically, leaving different ideas about what exactly it is. For example, the
Merriam Webster (2011) dictionary presents ten different interpretations of culture
ranging from developing the intellectual and moral faculties to an acquaintance with
and taste in fine arts to the act or process of cultivating living material in a prepared
nutrient. Despite these differences, most authors concur that the concept of
organizational culture refers to the shared values, underlying assumptions, and
behavioral expectations that govern decision making (Schein, 1985; Barney, 1986;
Alvesson, 1990; Hofstede, 1998; Christensen, 2006; Senge, 2006; Kissack &
Callahan, 2009; Rainey, 2009; Cameron & Quinn, 2011). In other words, culture
creates social order, continuity, and a collective identity that generates commitment to
rules about how we do things and how to get the job done within organizations
(Cameron & Quinn, 2011).
The culture of an organization refers to the unique conguration of norms, values,
beliefs and ways of behaving that characterize the manner in which groups and
individuals combine to get things done. This definition is particularly important to a
foreign company activity in a unusual national reality when national personal could
try to insert their own vision of labor activity.
Though these definitions reflect the most important features of organizational culture,
they are not full. More extended definitions were given by American scientist E.
Schein: A pattern of basic assumptions invented, discovered or developed by a
given group as it learns to cope with the problems of external adaptation and internal
integration that has worked well enough to be considered valid and, therefore, to be
taught to new members as the correct way to perceive, think and feel in relation to
these problems.
Russian scientist V. Kozlov considers that corporate culture is: a complex of
suggestions accepted by all members of organization without any evidence; setting
common frameworks of behavior, accepted by the most part of staff. Organizational
culture shows itself in philosophy and ideology of management, value orientations,
beliefs, expectations and norms of behavior. Organizational culture presents the
cumulative characteristic of organization, ways of activity evaluation, and presence of
specific terms that are understood by all employees within a company The most
important aspect of this definition consists in recognition of the cumulative effect of
the corporate culture.

15

1.2 Hofstedes cultural dimensions of Bangladesh


The Hofstede Model distinguished cultures according to five and this model provided
scales from 0 to 100 each dimension, and each country has a position on each scale or
index, relative to other countries. These five dimensions were empirically verifiable,
and each country could be positioned somewhere between the poles.
Hofstede empirically found four dimensions of culture in research across more than
50 countries. The dimensions are: power distance, collectivism versus individualism,
masculinity versus femininity and uncertainty avoidance. Bangladesh was not within
his first survey IBM studies. Hofstede later adds a new dimension, long- versus short
term orientation, based on the student sample of 23 countries around 1985 (2).
Bangladesh was included in this new survey. In Hofstede's first survey many other
Asian countries like India and Pakistan were included. Since Pakistan and India are
the countries nearer to Bangladesh and Bangladesh was a part of Pakistan until 1971
and as these countries have the same nature of history since the British rule and
having the same socio-economic, political and cultural features.
The Hofstede Model distinguished cultures according to five and this model provided
scales from 0 to 100 each dimension, and each country has a position on each scale or
index, relative to other countries. These five dimensions were empirically verifiable,
and each country could be positioned somewhere between the poles.
Table 1: Scores of 5D Hofstedes Cultural Dimensions
Country
Bangladesh

IDV
20

PDI
80

MAS
55

UAI
60

LTO
40

IDV-Individualism
PDI- Power Distance Index
MAS- Masculinity
UAI-Uncertainty Avoidance Index
LTO- Long-Term Orientation

16

Chart 1: 5D Hofstedes Cultural Dimensions of Bangladesh


From the chart above we can compare five cultural factors of Russia, Bangladesh.
Individualism versus collectivism is one of the important aspects of culture's
unstated assumptions'. The assumption that we bound together into tight groups of
interdependent individuals is fundamental to collectivism. Hofstede describe
Collectivist as the vast majority of people in our world live in societies in which the
interest of the group prevails over the interest of the individual and Individualist as a
minority of people in our world live in societies in which the interests of the
individual prevail over the interest of group (4). His Individualism Index (IDV) score
measures the level of individualism and collectivism in a particular culture. Countries
scored low in the IDV are characterized as collectivist.
Scoring 20 of 100 we can say Bangladesh is a less individualistic country.
Bangladeshi people have very close ties their extended family person, within which is
unquestioning loyalty. Major decisions of life for example education and marriage are
dictated from within this group, and family protection will continue in exchange for
absolute allegiance.
Power distance is defined as the extent to which the less powerful members of
institutions and organizations within a country expect and accept that power is
distributed unequally'. Most of the Asian countries under the survey of Hofstede are
found having large power distance. Bangladesh scores high on this dimension (score
of 80) which means that people accept a hierarchical order in which everybody has a
17

place and which needs no further justification. As a Bangladeshi, I can say that it is
not very difficult to notice inequality between people in government, in organization
even within the families.
Hofstede define masculinity as pertains to societies in which social gender roles are
clearly distinct i.e., men are supposed to be assertive, tough, and focus on material
success whereas women are supposed to be more modest, tender, and concerned with
the quality of life, femininity pertains to societies in which social gender roles overlap
i.e., both men and women are supposed to be modest, tender and concerned with the
quality of life.
Bangladesh scores 55 on this dimension and can be considered a a masculine society.
In masculine countries people live in order to work, managers are expected to be
decisive and assertive, the emphasis is on equity, competition and performance and
conflicts are resolved by fighting them out.
The Uncertainty avoidance scores are much higher for Bangladesh.
A standard score in Long term orientation shows that Bangladesh is one the way of its
development.
1.3 The Denison Organizational Culture Survey (DOCS)
Professor Denison for 15 years was researching the impact of corporate culture on
companys economic effectiveness. On data, gathered from 1000 companies he
created a survey, consisting of 4 key elements: Adaptability, Mission, Involvement
and Consistency.

18

Figure 1: The Denison Organizational Culture Survey

Adaptability
Are we listening to the marketplace?
High-performing organizations perceive and respond to the environment,
customers; they are apt to restructure and re-institutionalize behaviors and processes
to adapt to the outer environment.
Creating Change
High-performing organizations welcome new ideas and willing to try new
approaches to doing things, see the necessity of creating constant change as way of
doing business.
Customer Focus
19

Employees recognize the need to serve both internal & external customers and
continually seek new and improved ways to meet customer expectations.
Organizational Learning
Thoughtful risk taking is encouraged. Organizational learning means we gain
knowledge from successes and failures. Our first reaction to reasonable mistakes is
not Who is to blame?, but rather What can we learn?
Mission
Do we know where we are going?
High performing organizations have a mission that tells employees why they
are doing the work they do, and how the work they do each day contributes to the
why.
Strategic Direction & Intent
Strategic direction & intent typically refers to the multiyear strategies high
priorities established to operationalize the vision.
Goals & Objectives
Goals & objectives are the shortterm, specific goals established that help every
employee see how his/her daily activities connect to the vision & the strategy.
Vision
Vision is the ultimate reason you are in business your purpose what you are
ultimately trying to achieve.
Involvement
Are our people aligned and engaged?
Highly involved organizations create a sense of ownership and responsibility.
Out of this sense of ownership grows a greater commitment to the organization and an
increased capacity for autonomy.
Empowerment

20

They clarify those areas where employees can make decisions, have input, or
those areas that are beyond an employees scope of responsibility. This promotes
informed empowerment.
Team Orientation
Teamwork is encouraged so that creative ideas are captured and employees
support one another in accomplishing work goals.
Capability Development
Capability development is practiced in a variety of ways, including training,
coaching, and giving employees exposure to new roles and responsibilities.
Consistency
Does our system create leverage?
Consistency provides a central source of integration, coordination and control,
and helps organizations develop a set of systems that create an internal system of
governance based on consensual support.
Core Values
High-performing organizations have a clear set of core values that help
employees and leaders make consistent decisions and behave in a consistent manner.
Agreement
By engaging in dialogue and getting multiple perspectives on the table people
can reach agreement when difficult issues and problems arise.
Coordination & Integration
Employees understand how the work that they do impacts others and how
other's work impacts them. They make sure that work is coordinated and integrated to
serve the organization as a whole.
Involvement and adaptability reflects flexibility and inclination to changes.
Consistency and mission defines the opportunity to stability and controllability.
Consistency and mission mostly influence the financial indexes as ROA (return
on assets), ROI (total return on investment) and ROS (return on sales). If the rates of
21

consistency and mission are between 3 and 4, it means that ROA, ROI and ROS are
high and operating force of company is big.
Involvement and consistency which altogether constitute internal focus, have
its impact on quality, personnels satisfaction and ROI. Rates from 3 to 4 also reflect
the high level of quality, small percent of defects, right distribution of resources and
higher level of personnel satisfaction.
Involvement and adaptability reflect product and innovations development. If
the rates of these indexes are from 3 to 4, the level of innovativeness and creativity in
production and services is rather high, reaction to changing conditions is fast.
Adaptability and mission (external focus) influence on incomes increase in
sales and market share.
The Denison Organizational Culture Survey completely reflects the connection
between corporate culture and economic effectiveness of the company. It covers the
main aspects of companys business activity: Return on Sales, Return on Investment,
quality of goods, employees satisfaction, level of creativity and innovations,
flexibility, strategies and missions, team-orientation, delegation, corporate education
etc. This model we may use in our diagnostics.
In conclusion, we should say that corporate culture is a serious tool for improving the
effectiveness of any organization. We should not forget that effective corporate
culture absorbs peculiarities of national mentality and national culture. To have
positive business results, corporate culture is to be designed properly, because in case
it develops spontaneously it will never bring any profit, on the contrary it would slow
down the development of the company.
As it was suggested by E. Schein, corporate culture is developed at three levels:
Surface rituals and ceremonies, psychological climate, dress-code, myths and
legends, etc.;
Undersurface values, trusts, strategies and philosophy;
Deep national culture, mentality, peculiarities of perception.
22

According to the theories and methodologies suggested by different scientists,


effective corporate culture is to have the following features: high level of employees
background, strong motivation, fair compensation, innovative environment, staff
professional promotion, social protection, flexibility, friendly atmosphere, etc.
The effectiveness of any organization is defined by its economic (profit, productivity,
environmental compatibility) and social effectiveness (satisfaction of staff, stability,
good team-work, etc.). The influence of corporate culture on the company
effectiveness is analyzed by different methods and strategies.

1.4 Importance of effective corporate culture


Corporate culture unites owners, management and personnel to reach the unique aims
for corporate wellbeing. This unification is the strongest motivation factor. Corporate
culture helps to strengthen the labor discipline as it sets up precise, concrete and exact
labor and ethic frameworks, and forms behavior stereotypes, which are passed to the
company new-comers.
Corporate culture of the transnational company absorbs national cultures and submits
national mentality, creating a new vision of personal and labor relations. Corporations
are interested in constant employees vocational professional training and education
and HR rotation from region to another. It makes personnel stop identifying
themselves with their own country and its national interests, considering them to be
part and parcel of the multinational corporation.
To study the potential effect of culture, we need to be clear on why this culture might
matter. Both in OReilly (1989) and Kreps (1990), culture is considered relevant
because employees will face choices that cannot be properly regulated ex ante. Think
about a firm with a reputation for impeccable customer-care. Both managers and
employees are tempted to save on the effort necessary to provide the best care.
Offering the best effort is costly and the probability of being detected is minimal,
especially if the shirking is only partial: it is hard to prove that the care was only
slightly subpar. Furthermore, the negative consequences of a reduced reputation will
not be felt right away. One bad episode can hardly destroy a long-standing reputation
of excellence. Hence, without the proper motivation, managers and employees are
23

likely to skimp on the quality of their services. Even if the board anticipates this
problem, it is hard to design the proper incentive contracts. How can a firm sustain a
reputation of impeccable service? A solution is to raise impeccable service to the level
of a value that needs to be respected at all times, not a goal that is traded off against
other goals. The advantage of elevating this principle to the level of value is threefold.
First, by advertising it as a companys value a firm is more likely to attract 6 and
retain people who share this value or -- at the very minimum have a lower cost to
live and operate by this value. Second, by promoting top customer service as a value
it makes it clear to the employees that the company accepts no compromises on this
front: it is a commitment not to engage in economic calculations. In this way, for
example, an employee will not trade off the customer satisfaction with a larger profit.
Finally, promoting top customer service as a value facilitates its establishment as a
norm inside the firm. The enforcement of social norms differs in several ways with
respect to the enforcement of legal norms. To be enforceable, legal contingencies
need to be verifiable in court. By contrast, it is sufficient that a contingency be
observable for a social norm to be enforceable. An employee with a negative attitude
towards customers can hardly be sanctioned in court, but he can easily be shunned by
colleagues. Precisely because the judgment and the punishment are administered by
the community, not by a court of law, social norms should be very coarse, so that the
detection of a violation is relatively easy. Last but not least, for a social norm to be
enforced it must be shared by most people in a community. In particular, in a firm it
must be shared and followed by who is at the top. This is really a case of lead by
example. Social norms have typically less enforcement power than legal norms. A
violation of a legal norm can lead to harsh punishments, such as incarceration and (in
some countries) even to death. The violation of a social norm leads to lesser
consequences, such as ostracism from the community. In spite of this limited
punishment, social norms can help ameliorate moral hazard problems inside
organizations. Moral hazard in organizations is twofold. There is a moral hazard at the
top: top managers are tempted to renege their commitment to reward firm specific
investments made by the employees (Shleifer and Summers, 1991). There is also a
moral hazard inside the organization: employees want to save on effort because they
do not fully internalize the benefits this effort brings to the organization. This lack of
internalization is partly due to the inability to measure the employees marginal
productivity and, thus, to reward them appropriately through contracts.

24

In a wider sense of the word corporate culture is a culture of transnational or


multinational companies having their head offices in US or some of the Western
countries. Its branches exist in regions with completely different corporate culture. To
make these companies be effective there is a necessity to set up solid foundation on
which the relations between owners, management staff and personnel, with different
national mentality and culture are to develop in correspondence with the general
mission of the organization and its aims.

25

CHAPTER 2: Corporate Culture of Biman Bangladesh Airlines


2.1.1 Biman Bangladesh Airlines General information
Biman Bangladesh Airlines Ltd. The national flag carrier of Bangladesh has started its
journey from scratch virtually with no aircraft, no ancillaries. It came into operation
immediately after the war of independence. Despite many odds on its journey towards
a long and challenging way to progress, Biman has been able to establish its
reputation as an airline of welcome smile and an ocean of hospitality.
Created in February 1972, Biman enjoyed an internal monopoly in the aviation
industry of Bangladesh until 1996. In the decades following its founding, the airline
expanded its fleet and destinations but it was adversely affected by corruption and
mismanagement. Biman operated flights to 18 international destinations. The airline
was wholly owned and managed by the government of Bangladesh until 23 July 2007,
when it was transformed into the country's largest public limited company by the
Caretaker Government of Bangladesh. Since becoming a public limited company in
2007, the airline has reduced staff and begun to modernize its fleet. The airline has
made a deal with Boeing for ten new aircraft along with options for ten more. Biman
Bangladesh Airlines is certified as safe to fly in Europe by the European Aviation
Safety Agency and it also successfully passed the IATA Operational Safety Audit and
since then, the airline has resumed flights to some of its previous destinations in Asia
and Europe.
In order to modernize Biman fleet with new generation aircraft, Biman signed two
agreements with Boeing in April and May 2008 for purchasing new generation 4 X
777-300ER, 4 X 787-8 and 2 X 737-800 aircraft. Three 777-300ER aircraft joined
Biman fleet in October/November 2011 and February 2014. The 4th 777-300ER is
being delivered on 21 March 2014. Besides, two 737-800s and four new 787-8s are
scheduled to be delivered by Boeing in November/December 2015 and 2019-2020.
Currently Biman is operating 02 domestic and 18 international destinations.
Biman signed an agreement with Egypt Air Holding Company for dry lease of two
777-200ER aircraft, which were added to the fleet as of March 2014. Biman is in a
bid to operate more domestic destinations, as such procuring two Turbo-Prop aircraft.
Biman has already phased out vintage F28 and DC10-30 aircraft from its fleet as a
part of fleet modernization. The airline operates its own ancillary and maintenance
facilities at Hazrat Shahjalal International Airport.
26

Biman Bangladesh Airlines has significantly improved its position as it nears the
finishing line in its long overdue fleet renewal programme. But the carrier continues
to face several challenges and will need network and strategic adjustments if it is to
complete a turnaround. Biman is one of Asias smallest flag carriers, operating only
12 aircrafts on a network of 22 destinations, including 18 international and three
within Bangladesh. Its fleet currently consists of four 777-300ERs, two 777-200ERs,
two 737-800s, two A310s and two newly added Bombardier Dash 8 Q400.
Table 1: Aircrafts in Biman Bangladesh Airlines fleet
Aircraft
In Serviece
Total
12
Airbus A310-300
2
Airbus A310-300ET
0
Boeing 737-800
2
Boeing 747-200B
0
Boeing 777-200ER
2
Boeing 777-300ER
4
Boeing 787-8
0
Bombardier Dash 8
2
Source: CAPA Fleet Database

In Storage
2
0
1
0
1
0
0
0
0

27

Figure 1: Biman fleet Configurations


The journey began with a DC-3 aircraft-an air force plane gifted to the new airline by
the government. But the joy was short-lived. Before any service could begin, the
aircraft crashed while on a training, flight. Biman was finally air borne on March 7,
1972 with flights to Chittagong and Sylhet and on March 9 to Jessore. Thus the
domestic operation of Biman began. Since then there has been no looking back.
Indeed, it was the international operation of the airline which started first. On 4th
March, three days before start of domestic operation, the first flight of Biman's
international operation landed in Dhaka from London with 179 passengers on board.
The aircraft used in the flight was a chartered one from British Caledonian.
It was not an auspicious beginning for a new airline of a war devastated country like
Bangladesh. In the list of priorities for the resource hungry country, the position of an
airline had to be far down the line. The highlights of Bimans 42 years will actually
not depict the agonies that the airline had to undergo, but will give an idea how the
airline is surviving by charting a not so glamorous course like many of the
competition.
1972
Biman began its international operations with flights to London and Calcutta and its
domestic operations with flights to Chittagong, Sylhet, Jessore and Ishwardi. Four F28

27s joined the fleet, enabling Biman to operate domestic services and an international
service to Calcutta. Two of the F-27s were acquired from India and two from the
Netherlands. One DC-6 was also leased for two months.The service to London
continued with the chartered aircraft.
1973
Bangkok became Biman's third international destination and in the domestic sector
Thakurgaon was included in the network. Four more F-27s joined the fleet of Biman.
Two of these gifts from Australia and the other two were purchased from the Fokker
Company. A leased Boeing 707-320C joined Biman's fleet to operate its DhakaLondon services. The airline also purchased another Boeing 707-320C.
1974
Dubai and Kathmandu became Biman's fourth and fifth international destinations. In
the domestic sector services were extended to Cox's Bazar. In the international sector,
services were extended to Yangon, Abu Dhabi, Karachi and Mumbai in 1976. The
second Boeing 707-320C, joined the fleet.
1977
Singapore became another part of Biman's international network. Biman acquired its
third Boeing 707-320C from Trans Air of Canada. Biman was made a corporation
under the title- Bangladesh Biman Corporation. Jeddah, Doha and Amsterdam
became part of Biman's expanding network in the international sector in 1978. Two
more Boeing 707-320C aircraft were acquired, one of them from Japan.
1979
The year turned out to be the year of route expansion. In the international sector,
services were extended to Kuala Lumpur, Athens, Muscat and Tripoli. Syedpur
became a part of the domestic network in the following year. Tokyo and Dahran were
brought within the fold of Biman's network in the following year. An off-line office in
Jakarta was also opened. Another Boeing 707-320C joined Biman's fleet in 1980.
1981
The airline started operations to Rome and Kuwait, but suspended its Tokyo
operation. Biman received one Being 707-320C as a gift from Kuwait and purchased
two F-28s from the Fokker Company.
29

1983
The airline entered a new era with the acquisition of three used wide-bodied DC-1030s from Singapore Airlines. Baghdad was made on-line. Biman extended its
international services to Paris and to Rajshahi in the domestic sector in 1984.
1986
Bahrain was brought within Biman's network. One of the Boeing 707-320Cs was
phased out. Services to Frankfurt were extended in the following year.
1988
Riyadh was brought within the network in place of Dahran. Services to Baghdad were
suspended. One more Boeing 707-320C was phased out.
1989
The airline entered the select club of one million passengers. Services to Sharjah were
opened and the suspended service to Baghdad resumed. A new DC-10-30, purchased
from McDonnell Douglas, joined the fleet and the remaining Boeing 707-320C was
phased out. The airline also encompassed modern technology with the commissioning
of a Computerized Reservation System. The Flight Catering Centre at Hazrat
Shahjalal Interantional Airport was commissioned which enabled Biman not only to
upgrade its own in-flight services with high quality food, but also to earn additional
revenues by other airlines. The Ground Training School was merged with the
Apprentice Training School and moved to modern complex at Hazrat Shahjalal
International Airport.
1990
Two ATP aircraft joined the fleet for domestic routes and the F-27s were phased out
in the same year.
1992
New Delhi and Nagoya were included in Biman's international network and
operations to Sharjah were suspended. The $ 30m Hangar Complex at Hazrat
Shahjalal International Airport was commissioned.

30

1993
For the first time Biman crossed the Atlantic with services to New York. Hong Kong
was also included in the network but operations to Nagoya were suspended. Two DC10-30s were taken on lease.
1994
A Computerized Departure Control was commissioned. Biman commenced services
to Brussels and suspended its operation to Amsterdam in 1995.
1996
The two new Airbus A-310 were purchased from Airbus Industries. One DC-10-30
and one A 310-300 aircraft were taken on lease for three years in 1999.
2000
Another DC 10-30 and one A 310-300 aircraft were taken on lease for three years.
Two B 737-300s aircraft were taken on lease for one year in 2003. The leased B 737300 was released in April 2004. Further two F28 aircraft were purchased in May
2004.
2006
Biman commenced services to Manchester on 08 April 2006. Biman suspended its
operation to New York, Brussels, Paris, Frankfurt, Mumbai, Narita and Yangon for
operational reasons.
2007
Bangladesh Biman Corporation turned into a Public Limited Company. E-ticket and
BSP were introduced.
2008
The airline went into an agreement with Boeing Aircraft Company for acquisition of
10 new generation aircraft of 4 Boeing 777-300ER, 2 Boeing 737-800 and 4 Boeing
787 the biggest ever deal in the history of Biman as well as the country. One Boeing
747-300 was taken on lease on ACMI basis for 12 months. Two more 737-800s
joined the fleet in November.
31

2010
One lease-hold Boeing 777-200ER joined the fleet. Two Boeing 737-800s were taken
on lease for 5 years. The aircraft will remain in the fleet till January 2015. The airline
took delivery of one Airbus 310-300 on lease for 3 years.
2011
The first 02 of 04 Boeing 777-300ERs joined the fleet in October and November,
2011 and thus replacing the ageing DC10-30s, the long time backbone of Biman fleet.
2014
The 3rd Boeing 777-300ER joined the fleet on 5th February and the 4th is joining in
the second week of February. Now the airline has a new backbone comprising of
Boeing 777-300ERs, the new work horses of Biman, named as the Palki, the Arun
Aalo, the Aakash Pradeep and the Raanga Pravat.
During the four decades of Bimans existence, many types of commercial airliners
have adorned the fleet- ranging from the early leader, the venerable DC 3 to the
modern Peoples Preference, the Boeing 777. As stated earlier, the airline had
placed a firm order for the fifth generation Dreamliner to complement its fleet. Fuel
efficient Dreamliner is a new wonder of the skies.
Biman can look back with pride to many occasions where it made memorable
contributions to the nation and the travelling public. When the floods of 1988
engulfed the whole country Biman operated an air bridge providing the country's only
link with the outside world. As the flood waters moved up, even on to the run way at
HSIA, the skill and dedication of Biman's pilots kept the air bridge operational.
Biman Becomes Part of History:
On February 20, 2014, Biman operated the historical final-flight of worlds last
passenger DC10-30 on Dhaka Birmingham route and thus recording its name in the
annals of world aviation history.

32

The air transport is required high professional in work to ensure safety, exactly and
fast which are outstanding advantages of traveling passenger by air. Service quality
then becomes significantly important factor to achieve genuine and sustainable
passengers.
All the airports in Bangladesh are operated under the Civil Aviation Authority of
Bangladesh (CAAB), an autonomous body. CAAB is responsible for airports,
runways and air traffic control, taxiways, terminal buildings, warehouse, control
tower, operation and administrative buildings, air navigation and radio
communication system. There are three international and six domestic airports in
Bangladesh. Table 1 & 2 provides the list of Domestic airports & International in
Bangladesh with their locations.
Table 2: Domestic Airports
Location
Rajshahi

ICAO
VGRJ

Barisal
VGBR
Cox's Bazar
VGCB
Jessore
VGJR
Saidpur
VGSD
Source: Biman Bangladesh Airlines

IATA
RJH
BZL
CXB
JSR
SPD

Airport
Shah Makdhum
Airport
Barisal Airport
Cox's Bazar Airport
Jessore Airport
Saidpur Airport

There is another domestic airport under construction in Bagerhat


Table 3: International Airports
Location
Dhaka

ICAO
VGZR

IATA
DAC

Chittagong

VGEG

CGP

Sylhet

VGSY

ZYL

Airport
Hazrat Shah Jalal
International
Airport
Shah Amanat
International
Airport
Osmani
International
Airport

Source: Biman Bangladesh Airlines

33

Excellent and reliable customer service is one of the greatest aspects for an airport and
airlines in todays competitive environment. There are many factors that can help an
airport to build its customer base and customer service can be a determining factor in
the success of an entire operation.

Vision and Mission of Biman Bangladesh Airlines


Vision:
To protect Biman Bangladesh Airlines ltd. in the aviation market as a world-class
airlines
Mission:
To provide safe, Reliable, Efficient and Economical air transport services and to
satisfy customers exceptions while earning sustainable profit and continuing to be a
caring employer.
Goal:
To provide and develop Safe, Efficient, Adequate, Economical and properly
coordinated air transport services, internal as well as international.
Name and logo:
Biman Bangladesh Airlines
White stork flying across the red sun

34

2.1.2 Biman Bangladesh Airlines Corporate Structure

CE0

Director
market &
sales

Director
Custom
Service

Gm Dist. Sales

Gm sales promotion

Director
Admin

Gm sales

Country Dist.
Manager

Director
Finace

Director
e store &
eng.

Gm marketing

Director
project &
planning

Director
flight
operator

Gm cargo

Dy GM Marketing
Manager Export
Manager Reservation

Manager counter

Dy GM Sales

Manager Pax &


Cargo Sales

Manager Agency
Interline

Manager Import
Manager Market
Research

Manager Tariff &


IATA Affair

Manager
Communication

From the structure, We can say that Biman Bangladesh Airlines has a very strong
corporative structure. There are several multifunctional teams who are responsible in
35

different sectors. It is an effective corporate structure in modern competitive business


to achieve expected goals. The modern business strategies are changing because of
new technologies and competitors' polices. To keep the customers closer the Airline
can also change its strategy like recruit more employees in the customers' managing
sector. In modern business online marketing is playing a vital role. Biman Bangladesh
Air should put more attention in online marketing. The airline can recruit personnel in
this sector like Online marketing manager, Social media moderator.
2.2.1 SWOT analysis of Biman Bangladesh Airlines
A SWOT analysis leads the company to identify the positives and negatives inside the
companys organization (Strengths and Weakness) and outside of it, in the external
environment (opportunities and Threats). Developing a full alertness of the
companys situation can help with both strategic planning and decision-making. The
role of SWOT analysis is to take the information from the environmental analysis and
separate it into internal issues (strengths and weaknesses) and external issues
(opportunities and threats).SWOT analysis is done for a company, to find out its
overall Strengths, Weaknesses, Threats and opportunities leading to gauging the
competitive potential of the company.

Internal Strengths
factors
Government backing
fourth generation aircraft in
Biman's fleet
Biggest limited company in
Bangladesh
Strong Brand Recognition

Weaknesses
Corruption
Poor salary range
Careless management
More than 20 percent of the
operational capacity of the planes
remain unutilized
Delays(flight
schedules/administrative procedure)
Adding routes without proper
market study

36

limited destinations
Less innovation
Inattentive Cabin crews
Unreliable service
doesnt have enough source of
entertainment inflight
Less advertisements ( in TVs/Social
links/ Public places)
Absence of competitive spirits
Shortage of information in Biman
database

External Opportunities
factors
1.Can influence the
outstanding hub which it has
created in Bangladesh
2.Brand-new fleet to improve
customer confidence
3.More international
destinations to leverage on its
high charge brand image
4.To making people feel
curious, company can plan
and develop marketing
strategies in its growth areas
where it can attract new
customers. They have a
enormous opportunity to

Threats
A lot of competitors
Should go for low cost flights.
Price of ticket increased because of the
price increasing in oil
Fuel cost raised
Aviation regulation and government
policy
Accidents, luggage robberies affect
customers confident
Political instability in Bangladesh
One of the worlds worst airlines by
37

increase its market base by


expanding across Middle
East, India and China.
5. Offer the most inclusive
and scrupulous training
program to staffs to ensure
brand experience and
suitability

businessinsider
Low rating in SKYTRAX
World's 2-Star Airline
flawed handling of airports

From the SWOT analysis, we can see that the Airline is struggling with many
problems, which are possible to solve easily. One of the main weaknesses is
corruption, many of the high official of the organization are involved with it. The
government and the authority of the Airline should take steps to remove corruption
from the organization because many other weaknesses are there which are happening
because of corruptions.
2.2.2 PESTLE analysis
PESTLE analysis is in effect an audit of an organizations environmental influences
with the purpose of using this information to guide strategic decision-making. The
assumption is that if the organization is able to audit its current environment and
assess potential changes, it will be better placed than its competitors to respond to
changes.
To help make decisions and to plan for future events, organizations need to
understand the wider meso-economic and macro-economic environments in which
they operate. (The meso-economic environment is the one in which we operate and
have limited influence or impact, the macro-environment includes all factors that
influence an organization but are out of its direct control). An organization on its own
cannot affect these factors, nor can these factors directly affect the profitability of an
organization. But by understanding these environments, it is possible to take the
advantage to maximize the opportunities and minimize the threats to the organization.
Conducting a strategic analysis entails scanning these economic environments to
detect and understand the broad, long term trends.

38

A PESTLE analysis is a useful tool for understanding the big picture of the
environment in which an organization is operating. Specifically a PESTLE analysis is
a useful tool for understanding risks associated with market (the need for a product or
service) growth or decline, and as such the position, potential and direction for an
individual business or organization.
A PESTLE analysis is often used as a generic 'orientation' tool, finding out where an
organization or product is in the context of what is happening outside that will at
some point affect what is happening inside an organization. The six elements form a
framework for reviewing a situation, and can also be used to review a strategy or
position, direction of a company, a marketing proposition, or idea.

PESTLE
factors

Remarks
Political unrest in Bangladesh

Political

There is not enough political goodwill to increase the airport


capacity or modernize it

Economic

Biman signed a contract with US aircraft manufacturer, the Boeing


Company, to purchase eight aircraft at a cost of Tk 8,728 crore in
2008. Of them, four aircrafts are Boeing-777-300ER model and
remaining four Boeing-787-8 model.( dhakaherald, 9 November
,2013)
Apart from procuring the eight Boeings, Biman later ordered for
another two Boeing-737-800 aircraft. Biman took a syndicated loan
at 4.57 per cent interest from nine local banks. ( dhakaherald, 9
November ,2013)
3. The new CFM56-7 engine for the Next-Generation Boeing 737
and Boeing Business Jet offers customers dramatically lower
operating costs while maintaining industry-leading performance,
reliability, and operability. A reduction of 1 percent in fuel burn can
39

mean an annual savings of up to $15,000 per aircraft (GE Aviation,


june 1997)
Biman lost Tk210 crore in FY 2013-14. During FY 2012-13,
Bimans losses stood at Tk191.6 crore. It was Tk594.2 crore in FY
2011-12 (dhakatribune, 1 november 2014)

Social

Achieved 65% timely flights by adding Boeing 777-300ER to its


fleet (Dhaka tribune, 14 February 2014)
Many Passengers require high quality services on board flights
Asias 9th worst airport ( Prothom Alo, 31 October 2014)

Boeing 777-300ER is 19% lighter than its closest competitor,


greatly reducing fuel requirement: (Dhaka tribune, 14 February
Technological
2014)
Biman Bangladesh Airlines Training Center (BATC) has been
training its ground, flight service and technical personnel ( Biman
Bangladesh Airlines website)
The technologically advanced will use 20% percent less fuel,
provide Biman Bangladesh airlines up to 45 more cargo revenue
capacity (prnewswire, 22 April 2013)
The CFM56-7's advanced technology, which includes threedimensional aero design, a high efficiency wide chord fan,
advanced electronic engine control and active clearance control
systems, will provide significant cost benefits.
1.Approving of flight routings
Legal

40

Environmental rolls-royce trent 892 engine design for environment


Reductions in airport noise
Reduce CO2 emissions
Reduce NOx emissions
( HAW Hamburg, 24 June 2010)

2.3.1 Online Marketing Strategies


Online marketing is the fastest growing and most exciting branch of marketing today.
As the world becomes ever more connected, keeping up with developments and
trends is vital for marketers trying to reach new audiences who are more discerning,
fragmented and cynical than ever. Technology and software are changing at such a
high rate that it seems almost impossible to keep up with trends. Products and services
are evolving and adapting to the online sphere. Online marketing has boomed in
recent years, most companies have used it mainly for advertising or promoting
corporate images. Online marketing can be many types, such as:
a. Advertisement in online
b. Search engine optimization
c. Social media marketing
d. Web Marketing
e. E-mail marketing
a. Advertisement in online
Online advertising plays a vital role achieve the expected goals in modern business.
Nowadays online advertisement has become popular to the companies because its
cheaper and effective than the traditional methods of advertisement.

41

Figure:1 Online advertisement of Biman Bangladesh Airlines


Biman Bangladesh Airlines was not very active in online earlier. The airline has
started its online marketing. Recently a online banner advertisement (Figure: 1) of the
airline has seen in many leading online news portals of Bangladesh. Probably this was
the first advertisement of the national carrier. It proves the top management of the
airline has understood the importance of online marketing. The online advertisement
of Biman Bangladesh Airlines should be increased to promote its brand and to get
prospective customers.
b. Search Engine Optimization
Search engine optimization is a methodology of strategies, techniques and tactics used
to increase the amount of visitors to a website by obtaining a high-ranking placement
in the search results page of a search engine (SERP) -- including Google, Bing,
Yahoo, Yandex and other search engines.
Building a solid SEO strategy consists primarily of selecting relevant keywords and
providing valuable content related to those keywords. In the past, SEO was driven by
factors like keyword placement, keywords density, and even how many times a
keyword was used to link to that page.
But the search engines quickly discovered that keywords could be easily manipulated.
A page that had nothing to do with a keyword could be ranked in top three, just by
optimizing the page. Today, this means that sites who rely solely on keywords are
often ignored by the search engines.

42

In Bangladesh Google and Yahoo are the most popular search engines. Strong search
engine marketing strategies will take the national carrier of Bangladesh more closer to
its customers which will bring a fruitful result for the airline.
c. Social Media Marketing
In the current modern societies, Social Media channels are commonly used in order to
connect people together throughout the world using the Internet. Whether it is through
social networks, forums, blogs or media sharing websites, people can now have a
conversation online, also called interactive dialogue, with anybody and on any
subject, permitting them to share their experiences and valuable information. The use
of social media sites as part of a companys marketing strategy has increased
significantly in the past couple of years. Looking on a business perspective, it goes
without saying that Social Media Marketing has offered a large variety of new
opportunities for companies to promote their brand, products and services.
One of the biggest advantages that advertising through Social Media can offer
marketers is the ability to specifically target customers based on a variety of different
factors. Social Media sites are storing all kinds of data on their users, such as age,
gender, geographical location, interests, and many other pieces of information.
Consequently, these data can be used to reach the companys target audience.
Therefore, marketers can deliver marketing messages directly to the people who are
the most likely to notice them and click on them.
Biman Bangladesh Airlines, the national flag carrier of Bangladesh loses crores of
taka every year, by reducing corruption, improving its services and getting active in
social web sites can reduce the loss, even can turn into a profitable sector by gaining
customers faiths. Besides, it will also help the airline to plan the routes properly by
getting direct feedback from the passengers. If we compare the social media activities
of Biman Bangladesh Airlines with the other productive airlines like Emirates Airline,
Finnair, Aeroflot Airlines we will easily find the differences. For example in
Facebook,

43

Table 1: Comparisons of activities between some airlines in Facebook


Name of Airlines

Activities

Emirates Airline

Having at least 1 post in a day( huge


responses from the passengers) ,
Available in on-line every day from
8am to 8pm (GST) to answer questions

Finnair

Having a very productive post in every


2 days, advertising through Facebook
page,
answering
the
customers
questions

Aeroflot Airlines

Having an effective post in every 3


hours. Answering passengers questions
as quickly as possible

Biman Bangladesh Airlines

Only a post in 3 or 4 months. Not really


productive posts.

Biman Bangladesh Airlines should emphasis on its social media marketing strategies
to get closer to passengers, provide more information and answer the customers
questions as early as possible. By doing this; the national flag carrier can get more
customers satisfaction and can set up a strong bond with them. If we look at the
productive airlines, we will see, they are sharing very effective posts every day. Even,
they are not hesitating to apologize for any kind of technical problems on their pages.
Sam Walton, founder of Walmart said If you have questions, go to the store. Your
customers have the answers. And I think by having social media marketing strategy,
company can receive customers feedback and take the decision how meet customers
needs.
A journalist of Russia Segodniya and lecturer of New Media and E-journalism said
The use of social media in the airline industry has become a rapidly increasing trend.
Airlines are using the social media as a platform for brand development and product
marketing, improving customer service and improving passenger experience e.g.
through updating and responding to customers feedback. But unfortunately
44

Bangladesh Biman still don't have a Social Media strategy which is very much needed
for not only to improve company's positive image but also for advertising and
promotion sales attention.
With millions of users, Social Media Sites makes a convenient target base for people
who are trying to market products or services to people online. Actually, Social Media
Marketing has become a very effective way to drive targeted traffic to companies
website or blogs. The authority of Biman Bangladesh Airlines should set social media
marketing Strategies to promote the company, to get direct feedback of passengers
and to take the company into a profitable sector as well.
d. Web marketing
To accelerate online marketing the airline must create an ecommerce website which
will be full of necessary information and 24/7 format services. An instant chat box
should be created in the website to ensure 24/7 online customers service. Better online
services to the customers will ensure more satisfied old customers and will help to
prospective new customer.
e. Email marketing
Email marketing is directly marketing a commercial message to a group of people
using email. In its broadest sense, every email sent to a potential or current customer
could be considered email marketing. It usually involves using email to send ads,
request business, or solicit sales or donations, and is meant to build loyalty, trust, or
brand awareness. Email marketing can be done to either sold lists or a current
customer database. Broadly, the term is usually used to refer to sending email
messages with the purpose of enhancing the relationship of a merchant with its
current or previous customers, to encourage customer loyalty and repeat business,
acquiring new customers or convincing current customers to purchase something
immediately, and adding advertisements to email messages sent by other companies
to their customers.

45

Figure 2: Email marketing of airBaltic


Email marketing is helping small and big companies to gain more customers in this
globalized world. Many reputed airline companies (Figure: 2) using Email marketing
to reach their goals. Email marketing can bring a positive result for Biman
Bangladesh Airlines also. The top management of the airline should be more concern
about it.
2.3.2 Customers Relationship Management ( CRM)
Customer relationship management (CRM) is a combination of people, processes and
technology that seeks to understand a companys customers. It is an integrated
approach to managing relationships by focusing on customer retention and
relationship development. Customer relationship management is a comprehensive
approach that promises to maximize relationships with all customers, including
Internet or CRM e-customers, distribution channel members, and suppliers.
Customer relationship management (CRM) can help organizations manage customer
interactions more effectively to maintain competitiveness in the present economy.
Managing a successful CRM implementation requires an integrated and balanced
approach to technology, process, and people. CRM involves using technology to
gather the intelligence organizations need to provide improved support and services to
the customers. In other words, CRM is also about what the organizations do with that
information to better meet the needs of their existing customers and identify new
customers, resulting in higher profits for organizations.

46

Strategy

Sales

Customer
Relationship
Management

Customer Service

Social Media

Technical support

Marketing

Figure: Customer Relationship Management


There are only three ways to increase the profitability of a customer base; acquire
more customers, optimize the value of existing customers, or retain the right
customers longer. As the economic climate continues to become more competitive,
the fight over customers intensifies. Of the three choices above, acquiring new
customers is the most expensive. Research shows that acquiring a new customer costs
5 to 10 times more than retaining an existing one. Studies also show that loyal
customers will buy more over their lifetime and are willing to pay a premium for
doing business with someone they like and trust. Therefore, while organizations will
clearly continue looking for new customers, once acquired, they now know that it is
worth a significant investment to keep them. CRM is a way to do that.
In the airline industry, data analysis and data mining are a prerequisite to push
customer relationship management (CRM) ahead. Knowledge about data mining
methods, marketing strategies and airline business processes has to be combined to
successfully implement CRM. Data mining is very useful to support CRM in the
airline industry. In an initial phase of CRM, customer segments based on individual
patterns are found that it describes groups of customers with distinct needs and value.
The segmentation results are very useful for marketing concerns and for improving
customer services. For instance, the derived strategic segments can be used to derive
some high-level business strategies and to perform tactical marketing actions,
respectively.

47

For Biman Bangladesh Airlines, It is very important to develop its Customers


Relationship Management strategies to acquire more new prospective customers and
to obtain existing customers. Th CRM strategies will help the airline to get more
customers faith.
2.3.3 Corporate Social Responsibility (CSR)
Corporations around the world are struggling with a new role, which is to meet the
needs of the present generation without compromising the ability of the next
generations to meet their own needs. Organizations are being called upon to take
responsibility for the ways their operations impact societies and the natural
environment. They are also being asked to apply sustainability principles to the ways
in which they conduct their business. Sustainability refers to an organizations
activities, typically considered voluntary, that demonstrate the inclusion of social and
environmental concerns in business operations and in interactions with stakeholders
(van Marrewijk & Verre, 2003).
Corporate Social Responsibility is a concept which has become dominant in business
reporting. Every corporation has a policy concerning CSR and produces a report
detailing its activity. The broadest definition between of corporate social responsility
is concerned with what is or should be- relationship between global corporations,
governments of countries and individual citizens. More locally the definition is
concerned with the relationship between a corporate and the local society in which
itresides operates.

48

Figure: The Social Contract


Most people intially think that they know what is CSR and how to behave
reponsiblyand everyone claims to be able recognise socially or irresponsible
behaviour without necessarily being able to define it. So there is general agrrement
that CSR is about a company's concern for such things as community involment,
socially responsible products and processes, concern for the environment and socially
responsible employee relations. According to the European commission CSR is about
undertaking volutary activity which demonstrates a concern of stakeholders.
Corporate Behaviour is very important for company success both financially and
concerning the relationship between corporate and business interest. In other words
corparate behaviour is based on all these components and involvse laws, ethics and
coporate social responsibilites. Corporate behaviour has effects not only on
stakeholders but also on the entire economy.When a corporation acts ethically and
socially responsibly in its bussiness decision and strategic planning then that
corporation will be more sutainable.

49

CSR

coporate
behaviour

ethics

law

Figure: Components of Corporate behaviour


Organizations have developed a variety of strategies for dealing with this intersection
of societal needs, the natural environment, and corresponding business imperatives.
Ryanair is Europe's largest law fare airline. Ryanair's steady growth is being achieved
inthe most enviromentally friendsly and sustainable way by investing in the largest
aircraft and technologies (which have reduced fuel burn and CO2 emissions by 45%
over 9 years). Ryanair is currently the industry leader in terms of environment
efficiency and it is constatly working further improving performance.
Biman Bangladesh Airlines should set a progressive CSR strategies to come more
closer customers or promote its brand .
CSR is becoming a leading principle of top management and of entrepreneurs. The
quality of relationships that a company has with its employees and other key
stakeholderssuch as customers, investors, suppliers, public and governmental
officials, activists, and communitiesis crucial to its success, as is its ability to
respond to competitive conditions and corporate social responsibility (CSR). These
major transformations require national and global companies to approach their
business in terms of sustainable development, and both individual and organizational
leadership plays a major role in this change.

50

3.3.4 Innovation in Biman Bangladesh Airlines


What is Innovation? Innovation is crucial to the continuing success of any
organization. Innovation may be defined as exploiting new ideas leading to the
creation of a new product, process or service. It is not just the invention of a new idea
that is important, but it is actually bringing it to market, putting into practice and
exploiting it in a manner that leads to new products, services or systems that add value
or improve quality. It possibly involves technological transformation and management
restructuring. Innovation also means exploiting new technology and employing outof-the-box thinking to generate new value and to bring about significant changes in
society.
Studies have confirmed that all businesses want to be more innovative. One survey
identified that almost 90 per cent of businesses believe that innovation is a priority for
them. The conclusion is that the importance of innovation is increasing, and
increasing significantly. In the current day economic scenario, innovativeness has
become a major factor in influencing strategic planning. It has been acknowledged
that innovation leads to wealth creation. Even though efficiency is essential for
business success, in the long run, it cannot sustain business growth.
Figure 1: The need for Innovation
Technological
Advances

Changing business
environment

The need for


Innovation

Changing customers
and needs

Intensified competition

Although the need for more innovation is widely recognized, there is no commonly
accepted view of what innovation means in a business context. Many employees think
of it primarily as radically new products delivered by R and D departments;
51

Figure 2 : Innovation Process from Paul Trott, 2006

Business must look ahead, not behind. It's not just the big companies that need to do
this. Every business must innovate to compete. They must create new products and
services for new markets. They must be creative, and come up with new ideas that
never would have been thought of before.
Innovation Management is about more than just planning new products, services,
brand extensions, or technology inventions. Its about imagining, mobilizing, and
competing in new ways.
A Study of European Business School, DLR and PricewaterhouseCoopers shows the
most important success factors for innovation are customer orientation, creative staff
and corporate culture.
Being innovative does not mean inventing; innovation can mean changing your
business model and adapting to changes in your environment to deliver better
products or services. Successful innovation should be an in-built part of your business
strategy and the strategic vision, where you create an environment and lead in
innovative thinking and creative problem solving.
In my opinion, innovation is also required to be competitive today and tomorrow. In a
broader sense, innovation is important to the advancement of the society around the
world. New and innovative products can increase the standard of living and provide
people with the opportunities to improve their lives.

52

2.2.4 The importance of Market Research


Market research is any organized effort to gather information about target markets or
customers. It is a very important component of business strategy which is a key factor
to maintain competitiveness over competitors and provides important information to
identify and analyze the market need, market size and competition.
Market research, which includes social and opinion research, is the systematic
gathering and interpretation of information about individuals or organizations using
statistical and analytical methods and techniques of the applied social sciences to gain
insight or support decision making.
Biman Bangladesh Airlines is a national flag carrier, the biggest public limited
company in the country, which is fully owned and operated by the Government of
Bangladesh. The corporate body of Biman namely 'Biman Bangladesh Corporation, is
doing business as Biman Bangladesh Airlines under the Ministry of Civil Aviation
and Tourism. The airline provides international passenger and cargo services to its
destinations. It has air service agreements with 42 countries. Annual Hajj flights;
transporting tourists and non-resident Bangladeshi workers and migrants; and the
activities of its subsidiaries form an integral part of the airline's business.

Table 1: PASSANGER, FREQUENCY & REVENUE (JUL02 JUN13) [1]


PERIOD

FRQ

PAX

REV
(BDT IN CRORE)
1839.00
2057.41
2230.06
2349.56
2194.93
2639.91
2341.49
2453.55
2771.42
3243.89
3384.32
27505.54

JUL02 JUN03
13562
1424802
JUL03 JUN04
14276
1543491
JUL04 JUN05
15388
1537421
JUL05 JUN06
14263
1398556
JUL06 JUN07
11319
1200895
JUL07 JUN08
8460
1375615
JUL08 JUN09
8494
1397664
JUL09 JUN10
8012
1425205
JUL10 JUN11
9037
1602001
JUL11 JUN12
9126
1765922
JUL12 JUN13
6762
1578188
TOTAL
118699
16249760
Source: Mohammad Shah Newaz ,Director, Marketing & Sales, Biman Bangladesh Airlines
53

In FY 201011 it made losses of BDT 2 billion, despite the government exempting it


a debt of about BDT 11.94 billion and BDT 5.73 billion owed to the BPC and the
CAAB, respectively In FY 201112 it made a loss of BDT 6.06 billion
(US$75 million, the airlines highest loss ever), in FY 201213 unaudited figures
show a loss of BDT 2 billion. The airline plans to be fully profitable by FY 2014
15. As of December 2013, The Airline owed BDT 15.60 billion to different sources of
which BDT 3676.2 million to CAAB and BDT 8.50 billion to Padma Oil Company,
its fuel supplier [2]. Aside from incurring losses, the national flag carrier is reputedly
plagued with many problems, including poor customer service, delayed flights and
schedule disruptions. Bangladesh Economic Review 2013 reported that since the
Dhaka government converted the airline into a public limited company in 2007,
Biman posted losses every year except fiscal 2007-08 and 2008-09.

Figure 1: Bangladesh Airlines Profit or Loss fugure from 2007 to 2013


Biman Bangladesh Airlines is counting huge amount of loss every year because of its
poor corporative culture and starting routes without proper market research. The
Airline is going suspend the Dhaka-Frankfurt service from 27th November 2014
because each flight incurs losses of Tk70 lakh due to very low passenger numbers. On
the first flight to Frankfurt this year, only seven travellers were on board the Boeing
777 aircraft that has a capacity of 419 passengers. The Dhaka-Frankfurt route, which
has been offered and discontinued before, was not subject to a rigorous market study
before it was relaunched. Biman Bangladesh Airlines started its service to Frankfurt
54

and the government cancelled flights to Frankfurt in 2006 due to an insufficient


number of passengers.
Biman Bangladesh Airlines suspended it's Yangon and New Delhi operations two
months ago. The airline also has reduced its flights to Kolkata, Hong Kong,
Kathmandu, Bangkok and Kuala Lumpur and planning to add five international
destinations to Tokyo, Japan; Kunming and Guanxu, China; Colombo, Sri Lanka; and
Male, Maldives.
Market research is a way of getting an overview of consumers' wants, needs and
beliefs. Market research is the process of researching to customers and the market.
Market research enables a company to minimize its risks. Entering a new market
always involves risk because it means entering the unknown. Successful businesses
conduct research on a continual basis to keep up with market trends and to maintain a
competitive edge. To get the profits and avoid the economic losses the authority of
Airline must create an effective corporative culture and study the market properly
before starting the routes.
3.3.5 Human Resource Management (HRM)
Human Resource Management is defined as a system of activities and strategies that
focus on successfully managing employees at all levels of an organization to achieve
organizational goals (Byars & Rue, 2006). Employees are the human resources of an
organization and its most valuable asset. To be successful, an organization must make
employee productivity a major goal. The level of productivity can vary depending on
the skill levels the employee demonstrate in their jobs na satisfaction levels of
employees with the organization and their jobs. To develop a high performance and
effective workforce, the organization should use human resource management input
in the following organizational areas:
1.
2.
3.
4.
5.
6.
7.
8.

Establishment of a legal and ethical management


Job anlysis and job design
Recruitment and selection
Distribution of employee benefits
Negotiations with organized labour
Employee terminations
Healthcare career opurtunities
Employee motivation
55

9. Determination of emerging and future trends in healthcare


10.Strategic planning
If we look the Human Resource Management of Biman Bangladesh Airlines we
will see that the airline is having very poor Human Resource Management
dynamics as the tendency of shifting jobs among the airline employees remain
unstable because of poor salary range and facilities.
From the figure we can see that there is a job announcement for the designation
technical executive. In my opinion the Airline should look for more dynamic
employee who is having a excellent academic result.The recruiters did not even
mention the salary range of the employee here.

Figure: Job announcement of Biman Bangladesh Airlines

56

Figure: Job announcement of Bangladesh Biman Airlines


2.4 Analysis of passenger evaluation
The questionnaire was designed to collect information from the customer of Biman
Bangladesh Airlines Limited on their service. The questionnaire was designed simply
and focused mainly on general information of passenger and passenger evaluation
through cabin staff service (such as staff attitude & friendliness), onboard catering
(food, beverage), and onboard comfort (cabin seat comfort, inflight entertainment),
etc. Respondents were classified according to passenger gender, age, nationality,
occupation, location and travel frequency by Biman Bangladesh Airlines Limited.
There were 12 multiple choice questions which were given to the passengers of
Biman Bangladesh Airlines by E-mail and social media. It took 6 months to collect all
the answers from 100 people. There are 80 Bangladeshi and 20 foreigners of different
occupations and ages has answered the questions.

57

Table 1: Passenger Profile by Nationality of Biman Bangladesh Airlines Limited


Demographic
classification

Gender

Bangladeshi Foreigner

Male
Female
Total

70
10
80
Age
26
31-40
27
41-50
18
9
Total
80
Occupation Engineer 20
Doctor
16
Service 10
holder
Teacher 15
Student 15
Others
4
Total
80

Total

Bangladeshi Foreigner
%
%

Total
%

15
5
20
4
13
2
1
20
10
4
0

85
15
100
30
40
20
10
100
30
20
10

70
10
80
26
27
18
9
80
20
16
10

15
5
20
4
13
2
1
20
10
4
0

85
15
100
30
40
20
10
100
30
20
10

5
0
1
20

20
15
5
100

15
15
4
80

5
0
1
20

20
15
5
100

Table 2: Analysis of passenger evaluation of Biman Bangladesh Airlines


Results
Questions

Excellent
%

Very
good %

Good
%

Satisfactory
%

Not
satisfactory
%

Total
%

Services in
cabin
Foods on
board
Qualifications
of cabin crews
Entertainments
in the flight
Services in
Dhaka airport

15

50

30

100

10

25

40

20

100

10

15

30

45

100

25

40

30

100

10

15

30

35

10

100

58

Table 3: Flight delays and problems with luggage


Answers
Questions
Delayed flights in
the airport

Often
%
35

Sometimes
%
20

Never
%
45

Total
%
100

20

65

100

Enough
%
40

Not enough
%
35

Very less
%
25

Total
%
100

45

25

30

100

Problems with
15
your luggage in the
airport
Table 4: Information in the airport
Answers
Questions
Information
displays in the
airport
Useful information
and contents in the
airport

Table 5: Website and Social Media


Answers
Questions
Useful information
and contents in the
website
Useful information
and contents in the
social medias

Enough
%
35

Not enough
%
20

Very less
%
45

Total
%
100

10

30

60

100

59

Table 6: Prices of Air ticket


Answer
Question
Prices of
tickets

Very
expensive %
5

Expensive
%
25

Reasonable
%
35

Cheap
%
35

From the survey we can say that, to bring Biman Bangladesh Airlines into a profitable
sector following steps should be taken
a) Policy Level
1. Biman should have a vision and mission statement
2. To ensure accountability, the Board of Directors needs to be reformed. The
responsibilities of the members of the Board should be specified.
3. Experts on commercial airline and aviation industry must be included as members
in the Board of Directors.
4. Biman should abide by the current business methodologies as used in world top
airline to make it successful and profitable.
5. The Annual Report should be made public. This report must include financial
statements.
6. The Airline should not be exploited in the name of national interest. It should not
operate unprofitable flights
7. Bimans existing procurement rules should be appropriately amended so that
Biman can take its own business decisions
8. Recruitment, transfer, and promotion on political consideration must be avoided
9. The promotion system of Biman should make on the basis of both seniority and
performance in lieu of conventionally seniority basis
10. Increase the range of employees salaries to motivate the employees
11. By introducing an effective corporate culture can create a good working
atmosphere
60

12. Modern cost effective inventory control system should be introduced


b) Service and planning
1. Biman Bangladesh Airlines should set plans of its routes for several years and
need to look for new prospective routes as well.
2. The Airlines need to apply more innovative policies in marketing and put more
efforts in customer service to gain more customer faiths( need to be more
responsible to customers complaints)
3. Providing timely and Adequate Flight information ( Notify customers of known
delays, cancellations and diversions)
4. Deliver baggage on time
5. Meet customers essential needs during long fight delay
6. The Airlines should put more attentions to the passengers who is travelling with
children and to the disable passengers as well.
7. More attentive and professional cabin crews
8. Biman needs to employ more experienced engineer. Its aircraft maintenance is
poor, being one of the causes of delays and flight cancellations
9. Provide quality foods and much more materials to make the passengers journey
more enjoyable
10.Biman should develop and adopt a coping strategy addressing the market need.
Leasing will reduce immediate capital requirements and will allow Biman to
have flexibility in capacity which means that the airlines can scale-up or scaledown available seat capacity according to the market trend
11.Biman should consider closing down the loss-making routes and divert the
flights entirely to the profit-making ones
12.The Airline needs to keep its website continuously updated so that the clients
can get the latest and complete information from the website
13.In order to attract more customers Bangladesh Airline needs to encourage
tourism to Bangladesh. Bangladesh is gifted with the world's longest unbroken
sandy sea beach and a very rich mangrove forest. The Airline should highlight
these aspects and attract tourists.
14. 24/7 online & offline customer service should be ensured. A call center should
be created to ensure 24 hours customers service.
61

Marketing
1. Productive advertisements on newspapers/TV/radio/billboards/electronic
screens in public places
2. Participate in different international exhibitions
3. Sponsor international events (mostly sports events)
4. More active in social media marketing
5. Create an e-commerce website providing necessary information ( Instant chat
box need to add in the website to answer customers questions quickly)
6. Create applications for mobile devices such as ios, android
7. More attention in online marketing
8. E-mail marketing
Moreover, corruption in different sectors of the airline is playing vital role that is
making it difficult for the organization to break away from loss making ways.
Incidents of corruption are evident in purchase and leasing of aircraft, store and
purchase of spare parts, in the tender process and in ticketing and reconfirmation.
Corruption must be totally removed from the organization to bring back the airline's
old glory. People who are doing corruption or involved with corruption (inside or
outside the airline) must get punishment according to the law.

62

CHAPTER 3: Technologies of creating an effective corporate culture


3.1 Creating an innovative corporate culture
Companys corporate culture is a set of values, principles, norms of behavior and
ethics, which create a special environment in the frameworks of which all the labor
and social activity is realized. Each organization has its own corporate culture, which
is formed by formal or informal leader. A formal leader might be its owner or topmanager. Corporate culture is a powerful stimulus for employees identification with
companys mission and goals motivating them for labor achievements. Though the
companys corporate culture is to follow certain methodological principles it remains
original as it reflects its leader characteristic features, his vision of the companys
mission and goals, and particular elements of the proper business. Corporate culture
has external attributes its symbols, dress code, slogans that define it among other
businesses. It also disposes inner content its philosophy, behavioral stereotypes,
forms of authority, etc.
Companys corporate culture is on one side, from the peculiarities of its national
culture and national mentality, but on the other side, takes into consideration its
partners cultural specifics. Correctly formed corporate culture raises top-management
effectiveness as it creates favorable corporative environment for their activity.
According to the Russian researchers T.B. Ivanova and E.A. Zhuravleva, innovative
corporate culture is a culture with clear long-term strategy, effective system (formal
and informal) of gathering information; HR management; and active search and
estimation of new ideas. (Source Corporate Culture and Company Effectiveness, IVANOVA
TATIANA and MARIUS VACAREL page 83)

Its very important the Airline to start an innovative effective corporate culture to
reduce losses and to take into a profitable sector. They should focus on its corporate
culture and innovative marketing before focusing on modern equipment.
Strong motivation based on job satisfaction; direct link between employees personal
goals and companys interests; social status improvement; material motivation;
Fast reaction, flexibility and adaption to changes;
63

Permanent employees professional promotion;


Constant search for new ideas and its implementation; readiness to risk;
Usual participation of employees in decision-making process;
Development of the inner communicational level;
Focus on human values and environmental friendliness;
Strong social policy, comprising medical insurance, care and support of the personnel
in life difficulties;

64

Estimating the necessity of changes

Diagnostics of current corporate culture

Creating a responsible command, who will make the changes

Creating an atmosphere favorable for innovative ideas

Penetration of new modern system of communication Google Apps

Creating conditions for improving the professional level of stuff

Permanent scanning of results

Penetration of innovative ideas

Creating an algorithm of necessary changes

Improving the system of motivations

Improving the psychological climate of the company

Innovative corporate culture


Source: Corporate Culture and Company Effectiveness, IVANOVA TATIANA and MARIUS
VACAREL, Bucharest,

65

3.2 Company Effectiveness


The effectiveness of any organization is characterized by two basic components:
economic and social effectiveness. Economic effectiveness is the reflection of
economic achievements and is easily calculated and observed. Social effectiveness
mostly depends on how the owners take care of the personnel and is discovered by
application of indirect methods of analysis.
Economic effectiveness is described by the following factors:
- Results rating reflects if the tasks are successfully fulfilled;
- Productivity shows if the targets are achieved or not, using the minimal labor input;
- Benefit;
- Profitability concerns the whole process from buying raw materials till realization of
the ready production;
Ecological compatibility nowadays the principals of ecologically friendly production
are among the most important;
Energy consumption
Economic effectiveness may be discovered by statistic data evaluation based on
accounting documents and must be always precise, concise and exact.
Social effectiveness includes the following indexes:
- Labor activity of employees
- Satisfaction of workers from labor activity;
- Relative stability of organization connected with labor fluctuations;
- Good team-work that characterizes psychological climate inside the company;
- Balance between material and non-material motivation;
- Existence of initiative groups of employees, reflecting interests and needs of all the
personnel;
- Average age of employees;
- How often the employees are on sick leave.
66

Organizational effectiveness is critical to success in any economy. In order to achieve


increased and sustainable business results, organizations need to execute strategy and
engage employees.

Strategy
Structure, Capacity
& Capability

Leadership

People system &


process

Employee
Engagement
Passenger
Eperiences
Organizational
Performance
Figure 1: Right Managements Organizational Effectiveness Framework
To reach company effectiveness, it is very important to have a great leader who can
lead the company to the success. Employee engagement and customers experiences
are highly required to achieve success for a company. The airline should develop its
all strategies so that the employees can feel satisfied working in this company and to
gain customers faiths.

67

Great Leadership

Supportive
Infrustructure

Biman
Bangladesh
Airlines

Innovative
Management

Motivated employees

Figure 2: Biman Banladesh Airline's effectiveness


Biman Bangladesh airlines is lacking behind because it's not effective corporate
corporate culture. To enrich the company effectiveness and to bring the airline into
the profitable sector an effective corporative culture is urgently needed.

68

Conclusions
Every organization from small businesses to large corporations has a culture. The
culture refers to the values and attitudes of employees in the business or organization.
The beliefs, ideologies, principles and values of an organization form its culture. The
culture of the workplace controls the way employees behave amongst themselves as
well as with people outside the organization. Corporate culture is important because it
can make or break the organization. An effective corporate culture values each
employee in the organization regardless of his job duties, which results in employees
working as a team to meet the companys and their own personal needs. Effective
corporate culture improves the performance of a business in a number of areas.
Nowadays effective corporate culture is considered to be one of the main keys to
business success. It is especially interesting to analyze multinational companies
corporate culture where different and even opposite ethnic customs, traditions and
behaviors are merged for the sake of its economics effectiveness.
In modern business corporate culture is playing a vital role to achieve company's
expected goals. Biman Bangladesh Airlines has been operating for more than 44 years
now. There have been lots of ups and downs for this Bangladeshi Airline but it has
continued to operate despite all the hurdles and it will be safe to say that they are
holding a healthy position at the moment. The Airline started off really small with
only a single plane to park in their hanger. Today, they have 12 planes and are
pushing to add more to their locker. The airline has the huge opportunities to expand
its business. Companies with losses can't survive long days in the modern competitive
business. So, the top managers of the airline must think about to create an effective
corporate culture so that the company can get back it's old reputation and business
further. Only adding new aircrafts to fleet won't be able to bring the airline into the
profitable sector, if it does not recruit professional personnel in the required fields.
''And you all know very well, what will happen if its shut down. Everyone will be out
of work. We want you to work properly so that Biman can be a profitable
organization''
said Bangladesh Prime Minister Sheikh Hasina while she was
attending an opening ceremony of fourth generation aircraft Boeing 777.

69

Appendix A
Comparisons of activities between some airlines in Facebook
Name of Airlines

Activities

Emirates Airline

Having at least 1 post in a day( huge


responses from the passengers) ,
Available in on-line every day from
8am to 8pm (GST) to answer questions

Finnair

Having a very productive post in every


2 days, advertising through Facebook
page, answering the customers
questions

Aeroflot Airlines

Having an effective post in every 3


hours. Answering passengers questions
as quickly as possible

Biman Bangladesh Airlines

Only a post in 3 or 4 months. Not really


productive posts.

70

Appendix B

71

Appendix C

72

Appendix D
Table: PASSANGER, FREQUENCY & REVENUE (JUL02 JUN13) [1]
PERIOD

FRQ

PAX

JUL02 JUN03
JUL03 JUN04
JUL04 JUN05
JUL05 JUN06
JUL06 JUN07
JUL07 JUN08
JUL08 JUN09
JUL09 JUN10
JUL10 JUN11
JUL11 JUN12
JUL12 JUN13
TOTAL

13562
14276
15388
14263
11319
8460
8494
8012
9037
9126
6762
118699

1424802
1543491
1537421
1398556
1200895
1375615
1397664
1425205
1602001
1765922
1578188
16249760

REV
(BDT IN CRORE)
1839.00
2057.41
2230.06
2349.56
2194.93
2639.91
2341.49
2453.55
2771.42
3243.89
3384.32
27505.54

73

Appendix D
Questionnaires about passengers remarks of Biman Bangladesh Airlines

Name : -

Gender:-

Nationality:-

Age:-

Location:-

1. How do you rate the services in the cabin?


a) Excellent b) very good c) good d) satisfactory e) not satisfactory
2. How do you rate the quality of food during the flight?
a) Excellent b) very good c) good d) satisfactory e) not satisfactory
3. how do you rate the level of qualification of cabin crews?
a) Excellent b) very good c) good d) satisfactory e) not satisfactory
4) How do you rate the entertainments which are provided during the flight?
a) Excellent b) very good c) good d) satisfactory e) not satisfactory

5) How would you rate the service at the airport in Dhaka?


a) excellent b) very good c) good d) satisfactory e) not satisfactory
6) Did you meet with the cases of delayed flights in Hazrat Shah Jalal
International Airport, Dhaka?
a) yes b) never c) sometimes d) often

7) Is there enough information displays for passengers in the Hazarat Shah Jalal
International airport?
74

a) not enough b) very less c) enough d) others


8) did you ever meet problems with your luggage in the airport?
a) many times b) sometimes c) never
9) Do you think enough, there are useful information and contents in the Dhaka
airport?
a) Enough b) not enough c) very less
10)

What do you think about the prices of air tickets?

a) very expensive b) expensive c) reasonable d) cheap


11)
Do you think, there is useful information and contents in the airline's
official website?
a) Enough b) not enough c) very less
12)
Do you think, there is useful information and contents in the airline's
a) Enough b) not enough c) very less

75

Bibliography
Publications:
1. Ivanova T. B., Murshed H., How to reach economic growth of Bangladesh,
Majesty of marketing p121, December 2013, Dinproptrpvsk
2. Ivanova T. B., Murshed H., The role of corporative Culture and company
effectiveness in Bangladesh, I
, p. 13 October 2014, , 2014
3. Ivanova T. B., Murshed H.,The role of innovation in Business,
: , p.
30, 2014
4. Ivanova T. B., Murshed H., The importance of Market Research: Biman
Bangladesh Airlines Majesty of Marketing, December 2014, Dinproptrovsk
Conference
1. CORPORATE CULTURE AND COMPANY EFFECTIVENESS: BIMAN
BANGLADESH AIRLINES , International scientific conference on global
economy and global business, Yekaterinburg 2015
Books
1. Ivanova T.B., Vacarelu M. Corporate Culture and Company Effectiveness,
Moscow-Bucharest, 2013.
2. Orla ODonnell Richard Boyle, Understanding and Managing Organisational
Culture, Institute of Public Administration, 2008
3. Abul Hasnat Opu. Corporate Culture in Bangladesh. Dhaka : Open University Pr.
House,2013.
4. . ., . . :
. . : , 2010.
5. Innovation Process from Paul Trott, Innovation Management and New Product
Development, Third edition, 2006
6. Innovation Performance, Study of the European Business School, DLR and
PricewaterhouseCoopers, 2006/2007
76

7. Dave Evan & Jake mckeeSocial Media Marketing, wiley publishing, Inc. 2010, p. 7
8. Corporate Social Responsibilities, David Crowther and Gular Aras
9. .., ..
. : , 2007
News Papers
1. http://www.dhakatribune.com/bangladesh/2014/nov/01/biman-add-routeswithout-proper-study
2. http://www.dhakatribune.com/business/2014/feb/08/new-boeing-777-arrivesjoin-biman-fleet
3. http://www.thedailystar.net/new-boeing-aircraft-joins-biman-fleet-17556
4. http://www.thedailystar.net/tags/Hazrat%20Shahjalal%20International%20Airp
ort
5. http://www.dhakatribune.com/bangladesh/2013/nov/02/probe-body-findsinvolvement-18-biman-officials-gold-smuggling
6. http://www.prothomalo.com/bangladesh/article/375043/%E0%A6%AC%E0%A6%BF%E0%A6%
AE%E0%A6%BE%E0%A6%A8%E0%A7%87%E0%A6%B0%E0%A6%95%E0%A6%AF%E0%A6%BC%E0%A7%87%E0%A6%95%E0
%A6%9C%E0%A6%A8%E0%A6%AA%E0%A6%A6%E0%A6%B8%E0%A7%8D%E0%A6%A5%E0%A6%95%E0%A6%B0%E0%A7%8D%E0%A6%AE%E0%A6%95%E0
%A6%B0%E0%A7%8D%E0%A6%A4%E0%A6%BE%E0%A6%86%E0%A6%9F%E0%A6%95
7. http://www.dhakatribune.com/op-ed/2013/jul/20/biman-must-avoid-crashlanding
8. http://www.thedailystar.net/biman-sitting-idle-with-large-planes-35180
9. http://news.priyo.com/org/biman-bangladesh-airlines?page=1
10.http://www.dhakaherald.com/news/business/biman-seeks-bb-fund-for-predelivery-payment/
11.http://www.banglanews24.com/beta/fullnews/bn/341602.html

77

Online resoureces
1. http://www.routesonline.com/news/tagged/798/biman-bangladesh-airlines/
2. http://www.flightstats.com/go/FlightRating/flightRatingByCarrier.do?airlineCo
de=BG
3. http://www.biman-airlines.com/
4. http://www.airlinequality.com/Forum/biman.htm
5. https://www.iata.org/whatwedo/safety/audit/iosa/pages/operator.aspx?c=BBC
6. http://worldairlinenews.com/category/biman-bangladesh-airlines/
7. http://www.makemytrip.com/international-flights/biman-bangladesh-bg.html
8. http://www.prnewswire.com/news-releases/boeing-biman-bangladesh-airlinessign-deal-for-777s-787s-57481792.html
9. http://www.aviatorjoe.net/go/compare/A310-300/777-200ER/
10.http://www.boeing.com/boeing/commercial/777family/pf/pf_200product.page
11.http://boeing.mediaroom.com/2011-11-21-Boeing-777-Customers-Benefitfrom-10-New-Environmental-Actions
12.http://www.fzt.hawhamburg.de/pers/Scholz/dglr/hh/text_2010_06_24_EngineDesign.pdf
13.http://www.ch-aviation.com/portal/news/27304-biman-bangladesh-postponesnew-york-flights-to-august
14.http://www.risingbd.com/english/detailsnews.php?news=Country-used-astransit-for-gold,-currencies&nssl=0fcee95cc7b4f2067da8ba1e330de18e
15.http://www.businessinsider.com/worst-airlines-to-fly-economy-2013-5?op=1
16.http://www.flightglobal.com/landingpage/biman%20bangladesh%20airlines.ht
ml
17.http://www.ti-bangladesh.org/beta3/index.php/en/

78

DECLARATION
I, Helal Murshed hereby declare that this work submitted as a dissertation for a
Masters degree in the Peoples Friendship University of Russia is the findings of my
own and that no previous submission for a Masters degree has been made in this
university or elsewhere in parts or whole. The work of others which served as a useful
source of information has been acknowledged by references to the authors.

Date
Helal Murshed
(Masters Student)

..
Date
Prof.T.B.Ivanova
(Supervisor)

.
Date.
V.B.Alekseenko
(Head of Department)

79