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SECTION B
DEPARTMENT OF MANAGEMENT STUDIES
JAGANNATH UNIVERSITY
Report On BEXIMCO GROUP
Course Title: Strategic Management
Course Code: MGT- 4237
Submitted By
Group 1
10th Batch
Section B
Department of Management Studies
Jagannath University.
Group List
SL NO NAME ID REMARKS
1. Md. Bilat Ali B 140202115
2. Shahrier Fasal B 140202116
3. Tithy Kar B 140202117
4. Amanullah Aman B 140202118
5. Md. Zilkad Hossain B 140202120
6. Md. Ashikur Islam B 140202121
7. Tarun Kumar Das B 140202122
8. Md. Ramim Ahmed B 140202123
9. Md. Shihab Ul Alam B 140202127
10. Pranob Kumar Modak B 140202128
Supervisor:
Dr. Liza Khanam
Assistant Professor
Department of Management Studies
Jagannath University
The main intension of this report is about the practical analysis and representation of
theoretical topics of the course Strategic Management. The topic of this report is to
implement several theories of the book and relate them with a real organization of our
country. So, we have chosen one of the biggest group of companies of our country
BEXIMCO Group. This is the biggest conglomerate group of companies of our country.
They have enormous business sectors and captures a huge portion of the market
share of Bangladesh.
In this report we focused on some specific theoretical aspects of Strategic
Management. At first, we have included the introduction and history of BEXIMCO
Group. We have mentioned the key people of BEXIMCO group who has great
contribution to bring this Group of companies int6o this position. Thereafter we have
analyzed the SWOT of BEXIMCO Group, Porters’ five forces analysis and generic
studies. We have also mentioned the industry verticals of BEXIMCO Group and
diversification among the companies of this group.
We tried to focus on the basic information available in the official website of BEXIMCO
group and Wikipedia. We have also collected some information from some others
dependable sources. We try our best to put necessary information in the report about
the BEXIMCO group of the specific topics within a short period of time. So, there must
be lacking of data and information as we didn’t visit or talked any officials of the group.
We ended up this report with the references of the name of website we have visited
so far to make this report.
TABLE OF CONTENT
1 Introduction 1
1.2 History 2
4 Industry Verticals 8
References 11
Chapter: 1: Introduction
BEXIMCO Group
Type Public Limited Company
Industry Conglomerate
Website BEXIMCO.com
Page | 1
1.2 History:
The company was founded by brothers A. S. F. Rahman and Salman F Rahman in
1972, soon after the establishment of the Bangladeshi Republic. Their family was
earlier engaged in the jute industry of East Pakistan, which once the world's largest
jute producer and exporter. The family business was affected by a nationalization
program in Bangladesh during the early 1970s. However, with free market reforms in
the late 1970s and 1980s, the family regained many of their businesses.
Since the 1970s, BEXIMCO has been a pioneer in Bangladeshi industry, including the
modern textile sector, pharmaceuticals, ceramics and information and communication
technology.
In 2005, BEXIMCO Pharma became the first Bangladeshi company to list on the
Alternative Investment Market of the London Stock Exchange. It also opened its first
overseas retail outlet with the launch of the Yellow clothing brand in Karachi, Pakistan.
Yellow has since expanded to several Bangladeshi and Pakistani cities. In 2009,
Shinepukur Ceramics opened a showroom in Moscow, Russia. In 2010, the company
acquired stakes in several major Bangladeshi businesses, including IFIC Bank, GMG
Airlines, The Independent newspaper and Unique Hotels and Resorts.
The company is considered to enjoy close connections with the Awami League, with
Salman F Rahman serving as a Private Sector Development Affairs Adviser to Prime
Minister and Bangladesh Awami League President Sheikh Hasina, the current Prime
Minister of Bangladesh.
Page | 2
Chapter: 2: SWOT Analysis of BEXIMCO Group
There must be some main strength, weaknesses, future opportunities and potential
threats of every large and small companies. As BEXIMCO is one of the leading group
of companies in Bangladesh so they must have some Strength, Weaknesses,
Opportunities and Threats of BEXIMCO Group. The Strength, Weakness, Opportunity
and Threats of BEXIMCO Group are given below:
STRENGTH:
Strong Brand Image: The BEXIMCO name has now become one of the
most recognizable brand names in Bangladesh. It is synonymous with
innovation, trust and quality.
Huge Market Share: The Group consists of four publicly traded and
seventeen privately held companies. The publicly traded companies –
Bangladesh Export Import Company Limited, BEXIMCO Pharmaceuticals
Limited, Shinepukur Ceramics Limited and BEXIMCO Synthetics Limited –
have a combined market capitalization of approximately $617.34 million.
The Group had total revenues of $834 million in the year ended December
31, 2010.
Foreign Market Share: The Group sells its products and services in the
domestic Bangladesh market as well as international markets. BEXIMCO is
the largest exporter of pharmaceuticals in Bangladesh with a presence in 45
countries. The Group is also the largest ceramics exporter in Bangladesh.
Business Diversity: As BEXIMCO has grown over the years, the flagship
platform now has operations and investments across a wide range of
industries including textiles, trading, marine food, real estate development,
hospitality, construction, information and communication technologies,
media, ceramics, aviation, pharmaceuticals, financial services and energy.
Page | 3
Corporate Level Strategy: As BEXIMCO group is one of the biggest
companies in Bangladesh so they must have a strong corporate level
strategy. They have such a good corporate level strategy that can defend
the competitors and similar group of companies like Meghna group,
Bashundhara group, Navana Group, Square group, ACI group, Akij Group,
Abul Khayer group etc.
WEAKNESS:
Page | 4
Stock Manipulation: BEXIMCO faced accusations of being one of the 60
primary parties involved in the 2011 Bangladesh share market scam.
According to the High Court’s judgment, no direct evidence had been found
against any of the individuals or organizations accused in the case. Not only
are the allegations against the accused uncertain, they have not been
defined appropriately.
OPPORTUNITY:
Page | 5
THREAT:
New Entrance: Different types of new companies are entering into the
market which making threat for the big group of companies like BEXIMCO
and similar type of companies. As they are new they offering cheap price
product in the market which capturing some of the customer of these big
companies.
Page | 6
Chapter: 3: Porters Five Forces Analysis on BEXIMCO Group:
Page | 7
Threats of Substitute Products: Substitute products are goods and services
from outside a given industry that perform similar or the same function as a
product that the industry produces. A substitute product uses a different
technology to try to solve the same economic need. For example, BEXIMCO
Pharmaceuticals have to face a huge competition on their one of the popular
medicine Napa Extra. Different competitors have similar types of medicine for
the same uses in the market such as- Ace plus (Square Pharmaceuticals ltd),
Renova Plus (Opsonin Pharma), Cetam Plus (Pacific Pharmaceuticals Ltd.) etc.
They make a huge competition with the Napa Extra which is a potential threat
for the BEXIMCO Pharmaceuticals Ltd.
i. TEXTILE:
BEXIMCO Textile Division
Yellow
BEXIMCO Synthetic (Public Listed)
BEXIMCO Jute Division
Page | 8
ii. CERAMICS:
Shinepukur Ceramics (Public Listed)
iv. ENERGY:
BEXIMCO Petroleum Ltd.
BEXIMCO Power co Ltd.
v. PHARMACEUTICAL:
BEXIMCO pharmaceuticals (Public Listed)
Page | 9
Chapter: 5: Diversity among the companies of BEXIMCO Group:
The company has both Related and Unrelated diversification among different
sectors of the BEXIMCO group. As the companies are large in terms of market share
and size and the revenue earning condition does not relate on any sector over another.
So, the sector wise diversity is very low but interrelations among the firms of similar
sector is very high. As per example in Textile division they use technology, distribution
channels, products and other logistics services are used by every similar companies
but other sectors like IT division or Sports division don’t use their logistic services. So
here Unrelated diversification works among the different sectors of BEXIMCO group.
But the companies of same sector use the logistics and other materials of one another.
They relate on one another on different aspects of market and business activities. So
here the Related diversification works among the companies of same sector.
Page | 10
References:
i. https://www.BEXIMCO.com/#about
ii. https://www.BEXIMCO.com/#industry_verticals
iii. https://en.wikipedia.org/wiki/BEXIMCO
iv. https://BEXIMCOpharma.com/
v. Strategic Management- Competitiveness and globalization by Michael A.
Hitt, R. Duane Ireland, Robert E. Hoskisson, 12th edition, South Asian
Perspective
Page | 11