1. 1
Chapter One
1.1. INTRODUCTION
US-Bangla Airlines is the largest nationally scheduled airline in
Bangladesh. Apart from scheduled services, the US-Bangla Airlines is
engaged in the operation of national and domestic services and also
international.US-Bangla Airlines has flights to more than 8 destinations
along. Nowadays, the US-Bangla Airlines has successfully been labeled
as one of the pioneering airlines in green technology adaptation and
environmental friendly strategic decisions. The US-Bangla Airlines is
trying already the first airline to be a part of the scheme of Bangladesh
reducing greenhouse gas emissions. Apart from the novelty
improvements towards the ways in which passengers actually fly have
also undergone huge revolutions thanks to the US-Bangla Airlines.
1.2 Origin of the Report:
As a mandatory part the BBA Program, all the students of the faculty of
Business Studies, Green University of Bangladesh have to undergo
three months long internship program with an objective of gaining
practical knowledge about current business world. After this internship
program each and every students have to submit an internship report
mentioning their activities during the internship program.
2. 2
I’ve started my internship at the US-Bangla Airlines Limited, Head
Office, Dhaka, o8 November 2015 and I am still continuing my
internship on there. I am submitting my internship report focusing on
the overall performance of Airlines services.
1.3 Objective:
Broad Objective
The main objective of this report is to know about the airlines business
of Bangladesh especially that of US-Bangla Airlines.
Specific Objective:
The specific objectives of the study are to-
Present a profile of US-Bangla airlines
Examine the activities of the company
Asses the financial position of the company
Identify the US-Bangla Airlines strengths and weaknesses
To know present Strategic Management of US-Bangla Airlines.
Suggest some measures for improving the performance of the
company.
3. 3
1.4 Scope of the report:
US- Bangla Airlines Limited is one of the renowned airlines in
Bangladesh. The scope of the study is to evaluate the Management Art
of US Bangla Airlines. The report covers the organizational structure,
background, functions and the mangement performance of the
company.
1.5 Methodology:
In order to conduct this internship report both primary & secondary
data have been utilized. The sources of data are-
Primary source of data
Face-to-face conversation with the respective officers and stuffs
of the head office.
Secondary source of data
Website of the US-Bangla Airlines Ltd
Various articles relating general airlines functions and
management.
Relevant information published in various newspapers
Airline’s employees service manual.
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1.6 Constraints:
The constraints of the report and the study are follows:
The report has been conducted within a short time frame.
The study was limited within the head office.
The vital limiting factor is lack of experience and sound
knowledge for such researchworks.
Necessary data and information are neither adequate nor well
furnished.
The study was conducted by one person there is chance of having
error in any stage of data collection, data entry, data organizing,
data presentation, interpretation of result, etc.
Chapter Two
Organizational Profile
2.1 Corporate Profile
5. 5
US-Bangla is one of the leading groups in Bangladesh. It is working
with a broader mission & vision. US-Bangla Airlines is one of the
major business areas of US-Bangla Group.
Other business sectors are
Leather,
Green University
US- Bangla Medical College
Agro
Media
6. 6
US- Bangla Resorts and Tourism
US-Bangla Asset
US-Bangla Fashion House
’s etc. Serving with integrity, conducting us and our business in a
honest ethical and trustworthy manner, treating everyone with care,
fairness and respect, providing financial stewardship, growing through
innovation and creativity is the basic core values for our group. For
becoming a profitable organization, develop a solid corporate identity
in our specified targeted market area, to establish good working
relationships and begin working as a team, our primary objective is to
maintain the highest level of customer satisfaction and augment social
benefits.
7. 7
US-Bangla Airlines is the first and only ISO certified airlines in
Bangladesh, started its operation in July 17, 2014.The motive of this
company is to provide excellent service through honesty, quality,
integrity, sincerity, joy and professionalism to all our customers.
US-Bangla Airlines was established in 2010 and incorporated both in
Bangladesh and America, US-Bangla Airlines is the updated passenger
scheduled airlines in Bangladesh, initially operating in domestic routes
to and from Dhaka, Chittagong, Cox's Bazaar, Jessore, Sylhet, Saidpur,
Rajshahi and Barisal. The airlines had a plan to go for regional and
important international destinations & now it is flying abroad.
2.2 Services values:
Trusted: It starts with a commitment to personal and corporate
integrity.
Attributes are honest, fair, dependable, responsive and consistent.
Collaborative: Teaming with co-workers and its customers to provide
services that are better than what can do individually.
Attributes are respect, listening, learning, contributing, customized,
and scalable,robust.
Innovative: Applying technologies, processes, and methods in new
ways to provide quality services.
8. 8
Attributes are creative, unique, relevant, practical, proven and
valuable.
Efficient: A focus on improving its own efficiency without decreasing
the strength of its relationship and commitment to our customer.
Attributes are streamlined, economical and friendly.
Global Local: The people and facilities that support the customers’
worldwide operations global, regional and local.
Attributes are networked, coordinated, responsive and familiar.
2.3 Service offering
An airline company mainly sells service. It carries passenger or cargo
or both from one point to another point. US-Bangla Airlines offers 8
Domestic routes. From the last 2 year US-Bangla Airlines carried its
passengers by using the following four types of aircrafts:
Bombardier manufactured Three Dash 8 Q400 aircraft. It's a next
generation turbo prop aircraft with jet speed fitted with advanced
avionics. Seat configuration is 76.
Domestic Flights are:
US-Bangla Destination
Dhaka
Chittagong
Cox's Bazar
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Jessore
Sylhet
Saidpur
Rajshahi
Barisal
2.4 Market Liberalization competition:
The CAAB (civil Aviation Authority of Bangladesh) has begin to
liberalize the aviation market in Bangladesh and to provide authority
for new airlines to operate both domestically and internationally
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According to government policy some domestic carriers are also
spreading their wings internationally. As a result the local market is
rolling in triangle motion. The promising private local carriers’ are-
GMG Airlines:
GMG Airlines is a fully owned subsidiary of the GMG Group of
companies and commenced schedule service in April 1998. Now it
operates a fleet of 3 MD-82, 2Bombardier DASH8 Q100 and 2
Bombardier DASH 8 Q2OO aircraft.
It operates domestic services at Dhaka, Barisal, Chittagong, Cox’s
Bazar, Jessore and Sylhet.
It operates international services to Calcutta, New Delhi, Kathmandu,
Kuala Lumpur, and Bangkok. It has two B767-200ER and one B777-
300 on order and plans to introduce new international services to
Karachi, Singapore, Hongkong, Dubai, Abu Dhabi and Muscat during
late 2007 and 2008.
BEST Air:
Best Air is yet another start up airline and is planning to fly both
domestically and
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Internationally (including flights to Bangkok- Suvarnabhumi
,Chittagon, Guanghou , Jaypur, Calcutta and Kunming). Best Air has
been operating cargo services for a number of years.
UNITED Airways:
United Airways is a new start up airline that commenced service only in
July 2007. It operates through Bombardier DASH 8-100 service from
Dhaka to Sylhet and Chittagong and also started operation
internationally for Bangkok and Kuala Lumpur.
REGENT Airways:
Regent Airways is a new airline formed in Bangladesh in 2010 by H.G
Aviation Limited, a subsidiary of the habib Group. Regent Airways
operates 2×Dash 8-300 domestically within Bangladesh.
ZOOM Airways:
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Zoom Airways is a cargo airline based in Dhaka, Bangladesh. Formed
in 2002 as Z-Airways and Services, the airline operates cargo charter
flights in Bangladesh and in the South Asia region in 2005, the airline
was renamed to zoom Airways
Novo Air:
NOVOAIR is a limited liability company registered and incorporated in
Bangladesh. It is the premium Scheduled Passenger Airline spreading
wings in the emerging aviation market in Bangladesh and beyond. With
a fleet of EMB-145 Jet and ATR-72 aircrafts, activities are diversified
in passenger, air cargo transportation, travel and holiday services and
high end aviation technology solution.
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Chapter Three
Literature Review
3.1 Overview of Management:
Management in businesses and organizations is the function that
coordinates the efforts of people to accomplish goals and objectives by
using available resources efficiently and effectively.
Management includes planning, organizing, staffing, leading or
directing, and controlling an organization to accomplish the goal or
target. Resourcing encompasses the deployment and manipulation of
human resources, financial resources, technological resources, and
natural resources. Management is also an academic discipline,a social
science whose objective is to study social organization.
Some see management (by definition) as late-modern (in the sense of
late modernity) conceptualization. On those terms it cannot have a pre-
modern history, only harbingers (such as stewards).Others, however,
detect management-like-thought back to Sumerian traders and to the
builders of the pyramids of ancient Egypt. Slave-owners through the
centuries faced the problems of exploiting/motivating a dependent but
sometimes unenthusiastic or recalcitrant workforce, but many pre-
industrial enterprises, given their small scale, did not feel compelled to
face the issues of management systematically. However, innovations
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such as the spread of Hindu numerals (5th to 15th centuries) and the
codification of double-entry book-keeping (1494) provided tools for
management assessment, planning and control.
With the changing workplaces of industrial revolutions in the 18th and
19th centuries, military theory and practice contributed approaches to
managing the newly-popular factories.
Given the scale of most commercial operations and the lack of
mechanized record-keeping and recording before the industrial
revolution, it made sense for most owners of enterprises in those times
to carry out management functions by and for themselves. But with
growing size and complexity of organizations, the split between owners
(individuals, industrial dynasties or groups of shareholders) and day-to-
day managers (independent specialists in planning and control)
gradually became more common.
While management trends can change rapidly, the long term trend in
management has been defined by a market embracing diversity and a
rising service industry. Managers are currently being trained to
encourage greater equality for minorities and women in the workplace,
by offering increased flexibility in working hours, better retraining, and
innovative (and usually industry-specific) performance markers.
Managers destined for the service sector are being trained to use unique
measurement techniques, better worker support and more charismatic
leadership styles. Human resources find itself increasingly working with
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management in a training capacity to help collect management data on
the success of management actions with employees
3.2 Stages of Strategic Management:
The strategic-management process consists of three stages: strategy
formulation, strategy implementation, and strategy evaluation. Strategy
formulation includes developing a vision and mission, identifying an
organization’s external opportunities and threats, determining internal
strengths and weaknesses, establishing long-term objectives, generating
alternative strategies, and choosing particular strategies to pursue.
Strategy-formulation issues include deciding what new businesses to
enter, what businesses to abandon, how to allocate resources, whether
to expand operations or diversify, whether to enter international
markets, whether to merge or form a joint venture, and how to avoid a
hostile takeover. Because no organization has unlimited resources,
strategists must decide which alternative strategies will benefit the firm
most.
Strategy-formulation decisions commit an organization to specific
products, markets, resources, and technologies over an extended period
of time. Strategies determine long-term competitive advantages. For
better or worse, strategic decisions have major multifunctional
consequences and enduring effects on an organization. Top managers
have the best perspective to understand fully the ramifications of
strategy-formulation decisions; they have the authority to commit the
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resources necessary for implementation. Strategy implementation
requires a firm to establish annual objectives, devise policies, motivate
employees, and allocate resources so that formulated strategies can be
executed. Strategy implementation includes developing a strategy-
supportive culture, creating an effective organizational structure,
redirecting marketing efforts, preparing budgets, developing and
utilizing information systems, and linking employee compensation to
organizational performance. Strategy implementation often is called
the “action stage” of strategic management. Implementing strategy
means mobilizing employees and managers to put formulated strategies
into action. Often considered to be the most difficult stage in strategic
management, strategy implementation requires personal discipline,
commitment, and sacrifice.
Successful strategy implementation hinges upon managers’ ability to
motivate employees, which is more an art than a science. Strategies
formulated but not implemented serve no useful purpose. Interpersonal
skills are especially critical for successful strategy implementation.
Strategy-implementation activities affect all employees and managers
in an organization. Every division and department must decide on
answers to questions, such as “What must we do to implement our part
of the organization’s strategy?” and “How best can we get the job
done?” The challenge of implementation is to stimulate managers and
employees throughout an organization to work with pride and
enthusiasm toward achieving stated objectives. Strategy evaluation is
the final stage in strategic management. Managers desperately need to
know when particular strategies are not working well; strategy
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evaluation is the primary means for obtaining this information. All
strategies are subject to future modification because external and
internal factors are constantly changing.
Three fundamental strategy-evaluation activities are (1) reviewing
external and internal factors that are the bases for current strategies, (2)
measuring performance, and (3) taking corrective actions. Strategy
evaluation is needed because success today is no guarantee of success
tomorrow! Success always creates new and different problems;
complacent organizations experience demise. Strategy formulation,
implementation, and evaluation activities occur at three hierarchical
levels in a large organization: corporate, divisional or strategic business
unit, and functional. By fostering communication and interaction
among managers and employees across hierarchical levels, strategic
management helps a firm function as a competitive team. Most small
businesses and some large businesses do not have divisions or strategic
business units; they have only the corporate and functional levels.
Nevertheless, managers and employees at these two levels should be
actively involved in strategic-management activities. Peter Drucker
says the prime task of strategic management is thinking through the
overall mission of a business: . . . that is, of asking the question, “What
is our business?” This leads to the setting of objectives, the
development of strategies, and the making of today’s decisions for
tomorrow’s results.
This clearly must be done by a part of the organization that can see the
entire business; that can balance objectives and the needs of today
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against the needs of tomorrow; and that can allocate resources of men
and money to key results.
3.3 Key Terms in Strategic Management
Before we further discuss strategic management, we should define nine
key terms: competitive advantage, strategists, vision and mission
statements, external opportunities and threats, internal strengths and
weaknesses, long-term objectives, strategies, annual objectives, and
policies. Competitive Advantage Strategic management is all about
gaining and maintaining competitive advantage. This term can be
defined as “anything that a firm does especially well compare to rival
firms.” When a firm can do something that rival firms cannot do, or
owns something that rival firm’s desire, that can represent a
competitive advantage.
For example, in a global economic recession, simply having ample cash
on the firm’s balance sheet can provide a major competitive advantage.
Some cash-rich firms are buying distressed rivals. For example, BHP
Billiton, the world’s largest miner, is seeking to buy rival firms in
Australia and South America. Freeport-McMoRan Copper & Gold Inc.
also desires to expand its portfolio by acquiring distressed rival
companies. French drug company Sanofi Aventis SA also is acquiring
distressed rival firms to boost its drug development and diversification.
Cash-rich Johnson & Johnson in the United States also is acquiring
distressed rival firms. This can be an excellent strategy in a global
economic recession. Having less fixed assets than rival firms also can
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provide major competitive advantages in a global recession. For
example, Apple has no manufacturing facilities of its own, and rival
Sony has 57 electronics factories.
Apple relies exclusively on contract manufacturers for production of all
of its products, whereas Sony owns its own plants. Less fixed assets has
enabled Apple to remain financially lean with virtually no long-term
debt. Sony, in contrast, has built up massive debt on its balance sheet.
CEO Paco Underhill of Envirosell says, “Where it used to be a polite
war, it’s now a 21st-century bar fight, where everybody is competing
with everyone else for the customers’ money.”
Shoppers are “trading down,” so Nordstrom is taking customers from
Neiman Marcus and Saks Fifth Avenue, T.J. Maxx and Marshalls are
taking customers from most other stores in the mall, and even Family
Dollar is taking revenues from Wal-Mart.9 Getting and keeping
competitive advantage is essential for long-term success in an
organization.
The Industrial/Organizational (I/O) and the Resource-Based View
(RBV) theories of organization (as discussed in Chapters 3 and 4,
respectively) present different perspectives on how best to capture and
keep competitive advantage—that is, how best to manage strategically.
Pursuit of competitive advantage leads to organizational success or
failure. Strategic management researchers and practitioners alike desire
to better understand the nature and role of competitive advantage in
various industries. Normally, a firm can sustain a competitive
advantage for only a certain period due to rival firms imitating and
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undermining that advantage. Thus it is not adequate to simply obtain
competitive advantage.
A firm must strive to achieve sustained competitive advantage by
continually adapting to changes in external trends and events and
internal capabilities, competencies, and resources; and by effectively
formulating, implementing, and evaluating strategies that capitalize
upon those factors. For example, newspaper circulation in the United
States is steadily declining. Most national newspapers are rapidly losing
market share to the Internet, and other media that consumers use to stay
informed. Daily newspaper circulation in the United States totals about
55 million copies annually, which is about the same as it was in 1954.
Strategists ponder whether the newspaper circulation slide can be halted
in the digital age.
The six broadcast networks—ABC, CBS, Fox, NBC, UPN, and WB—
are being assaulted by cable channels, video games, broadband,
wireless technologies, satellite radio, high-definition TV, and digital
video recorders. The three original broadcast networks captured about
90 percent of the prime-time audience in 1978, but today their
combined market share is less than 50 percent.10 An increasing number
of companies are gaining a competitive advantage by using the Internet
for direct selling and for communication with suppliers, customers,
creditors, partners, shareholders, clients, and competitors who may be
dispersed globally. E-commerce allows firms to sell products, advertise,
purchase supplies, bypass intermediaries, track inventory, eliminate
paperwork, and share information. In total, e-commerce is minimizing
21. 21
the expense and cumbersomeness of time, distance, and space in doing
business, thus yielding better customer service, greater efficiency,
improved products, and higher profitability. The Internet has changed
the way we organize our lives; inhabit our homes; and relate to and
interact with family, friends, neighbors, and even ourselves. The
Internet promotes endless comparison shopping, which thus enables
consumers worldwide to band together to demand discounts.
The Internet has transferred power from businesses to individuals.
Buyers used to face big obstacles when attempting to get the best price
and service, such as limited time and data to compare, but now
consumers can quickly scan hundreds of vendor offerings. Both the
number of people shopping online and the average amount they spend
is increasing dramatically. Digital communication has become the name
of the game in marketing. Consumers today are flocking to blogs, short-
post forums such as Twitter, video sites such as YouTube, and social
networking sites such as Facebook, MySpace, and LinkedIn instead of
television, radio, newspapers, and magazines. Facebook and MySpace
recently unveiled features that further marry these social sites to the
wider Internet. Users on these social sites now can log on to many
business shopping sites with their IDs from their social site so their
friends can see what items they have purchased on various shopping
sites. Both of these social sites want their members to use their IDs to
manage all their online identities.
Most traditional retailers have learned that their online sales can boost
in-store sales as they utilize their Web sites to promote in-store
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promotions. Strategists are the individuals who are most responsible for
the success or failure of an organization. Strategists have various job
titles, such as chief executive officer, president, and owner, chair of the
board, executive director, chancellor, dean, or entrepreneur. Jay
Conger, professor of organizational behavior at the London Business
School and author of Building Leaders, says, “All strategists have to be
chief learning officers. We are in an extended period of change. If our
leaders aren’t highly adaptive and great models during this period, then
our companies won’t adapt either, because ultimately leadership is
about being a role model.” Strategists help an organization gather,
analyze, and organize information.
They track industry and competitive trends, develop forecasting models
and scenario analyses, evaluate corporate and divisional performance,
spot emerging market opportunities, identify business threats, and
develop creative action plans. Strategic planners usually serve in a
support or staff role. Usually found in higher levels of management,
they typically have considerable authority for decision making in the
firm. The CEO is the most visible and critical strategic manager. Any
manager who has responsibility for a unit or division, responsibility for
profit and loss outcomes, or direct authority over a major piece of the
business is a strategic manager (strategist). In the last five years, the
position of chief strategy officer (CSO) has emerged as a new addition
to the top management ranks of many organizations, including Sun
Microsystems, Network Associates, Clarus, Lante, Marimba, Sapient,
Commerce One, Cadbury Schweppes, General Motors, Ellie Mae,
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Cendant, Charles Schwab, Tyco, Campbell Soup, Morgan Stanley, and
Reed-Elsevier.
This new corporate officer title represents recognition of the growing
importance of strategic planning in the business world.11 Strategists
differ as much as organizations themselves, and these differences must
be considered in the formulation, implementation, and evaluation of
strategies. Some strategists will not consider some types of strategies
because of their personal philosophies. Strategists differ in their
attitudes, values, ethics, willingness to take risks, concern for social
responsibility, concern for profitability, concern for short-run versus
long-run aims, and management style. The founder of Hershey Foods,
Milton Hershey, built the company to manage an orphanage. From
corporate profits, Hershey Foods today cares for over a thousand boys
and girls in its School for Orphans. Vision and Mission Statements
Many organizations today develop a vision statement that answers the
question “What do we want to become?”
Developing a vision statement is often considered the first step in
strategic planning, preceding even development of a mission statement.
Many vision statements are a single sentence. For example, the vision
statement of Stokes Eye Clinic in Florence, South Carolina, is “Our
vision is to take care of your vision.” Mission statements are “enduring
statements of purpose that distinguish one business from other similar
firms. A mission statement identifies the scope of a firm’s operations in
product and market terms.”12 It addresses the basic question that faces
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all strategists: “What is our business?” A clear mission statement
describes the values and priorities of an organization.
Developing a mission statement compels strategists to think about the
nature and scope of present operations and to assess the potential
attractiveness of future markets and activities. A mission statement
broadly charts the future direction of an organization. A mission
statement is a constant reminder to its employees of why the
organization exists and what the founders envisioned when they put
their fame and fortune at risk to breathe life into their dreams. Here is
an example of a mission statement for Barnes & Noble: Our mission is
to operate the best specialty retail business in America, regardless of the
product we sell. Because the product we sell is books, our aspirations
must be consistent with the promise and the ideals of the volumes
which line our shelves. To say that our mission exists independent of
the product we sell is to demean the importance and the distinction of
being booksellers.
As booksellers we are determined to be the very best in our business,
regardless of the size, pedigree, or inclinations of our competitors. We
will continue to bring our industry nuances of style and approaches to
bookselling which are consistent with our evolving aspirations. Above
all, we expect to be a credit to the communities we serve, a valuable
resource to our customers, and a place where our dedicated booksellers
can grow and prosper. Toward this end we will not only listen to our
customers and booksellers but embrace the idea that the Company is at
their service.
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Chapter Four
Findings and Analysis
4.1Current Strategies
The current strategies of US-Bangla Airlines are in line with the
advancement that the mobile and computing technology is experiencing
at current time. At the same time, the company is also focused on
expanding its business operations to better serve increasing amounts of
passengers due to the slight recuperation of the global economic
conditions. Among the strategies that the airline currently undertake
include
Upgrading the customer experience through the introduction of
mobile applicationservices for business class customers. Along
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with that the company is also experimenting with enabling texting
and mobile services for business class customers during on-flight
hours.
Modernizing the current aero planes while offering new services.
Managing a better cost base operation
Increasing corporate responsibility through environmental
performance and partnerships.
The opportunities that exist in today’s market for airlines in terms of
scheduled passengers is the most and US-Bangla Airlines will
definitely to focus strategic development that will take these markets
into account.
4.2 SWOT Analysis
Conducting a SWOT analysis into US-Bangla Airlines business
operations would be a good way to identify the company’s strengths
and weakness and ways for improvements. It is important that strategic
development is reflected upon US-Bangla Airlines strengths and
weaknesses with relation to competitive threats and opportunities that
exist in the organization’s external Environment.
Strength
US-Bangla Airlines of an established and a well-known brand name
that is reputed with carrying the symbol of Bangladesh Domestic air
travel.
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Largest Bangladesh based national airline in terms of financial size
and stability
Weakness
Poor employee relations histories that was evident in a number of
cabin crew and issues that have not been dealt with carefully.
Reliability and trust issue in terms of safety is not at an optimum
level due to increase in terrorist threat
Innovation and change is slightly slow in terms of US-Bangla
Airlines application.
Opportunities
US-Bangla Airlines rise in the Sky star quality system is an
important marketing area that the company can use to boast
national image
Most competitors have been forced to exit the market due
to the high cost of competing and the struggle of the global
economy.
Reliability in terms of service delivery is still an issue that
is faced by most of US-Bangla Airlines competitors.
Emergence and increasing prominence of new markets
such as budget travelling.
Threats
The Open skies agreement has provided a fair competition for
smaller airlines while also increasing the competitiveness through
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removal of restrictions on international and national routes for all
airlines.
Environmental awareness that has constantly risen amongst most
consumers is increasing the pressure on US-Bangla Airlines to
reinvent energy policies and apply strict regulation on flight
schedules during off-peak seasons to adopt environmental
regulations.
Reducing operational costs among competitions is making it hard
for US-Bangla Airlines to settle on previous strategies for profit
margin.
4.3 Porter’s Five Forces factor
Porter’s five forces is an important tool in analyzing the competitive
nature of the airline Industry in order to assess the position of US-
Bangla Airlines in the market. At the same time, the analysis will
enable US-Bangla Airlines to make strategic decisions in order to
increase profitability.
Strength Force/Threat
High Competitive Rivalry
US-Bangla Airlines caters for short haul flights.
Within the short haul there exists little
differentiation between US-Bangla Airlines and its
competitors in terms of pricing and service
offering.
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The short haul market is more fragmented with
many small players
Consolidation of competitors has also increased
competition
High Supplier Power
There exist two major aero plane manufacturers
with high amount of competitiveness. This equals
high bargaining power
Priority of landing slots is given to historic rights
of existing users
Medium Buyer Power
Low concentration of buyers to supplier mean the
buyers have
little bargaining power
Increase internet usage has amplified awareness
and interaction of customers
Lowe cost carriers are seeing surge in buyers due
to economic conditions
Low Threat of New Entrants
Significant barriers towards new entry.
Environment is too competitive. There are also
high capital costs requirements.
Barriers to exit are in place which deters new
entrants.
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4.4 ANS off Product Market Matrix
The Ansoff growth matrix is a strategic tool that helps companies to
evaluate products along with its market growth strategy. The product-
market growth matrix of Ansoff allows a business to grow by virtue of
a new or existing product succeeding in a new or existing market. The
Ansoff matrix outputs a series of suggested growth strategies that
directs the business’ strategy through the following drivers:
Figure above shows the ANS off growth matrix Market Penetration
Growth strategy that focuses on releasing existing products into
existing markets successfully through:
Drive out competitors in mature markets through restructuring.
(Aggressive promotional campaigns)
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Increase customer base through loyalty schemes
Market Development
Selling of existing strategies to new and fresh markets:
Marketing products in new geographical settings.
Different distribution channels.
Different pricing policies for trans-market customer pulling.
Product Development:
Strategy that requires pushing new products into existing markets is
product development. This requires appealing and competent products
which can appeal existing markets.
Diversification
Diversification allows for businesses to introduce new products into
new markets. This strategy allows for a company to introduce and
dominate a market that is non-existent initially. There are too many risk
factors involved with this strategy and companies that take this route
for growth require deep pockets to suppress possible failure.
4.5 BCG Growth-Share Matrix
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The Boston Consulting Group (BCG) growth-share matrix is a strategic
model to guide companies in resource allocation. It is without a doubt;
one of the most widelyused model for portfolio management.
Figure above shows the BCG Matrix model
The BCG matrix can be used to determine priorities that should be
given for the product portfolio of a company.
Companies with diversified product lines can use of the BCG Models
strategies for evaluating the organization’s resources for products.
Placing products in the BCG matrix allows for products to be split into
portfolios in the company- which ate the stars, cash cows, dogs and
question marks.
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Stars (high growth, high market share)
Use huge amounts of cash
Generates large amount of revenue
Leaders in the business and market
Cash Cows (low growth, high market share)
Profits and cash generation is high
Low growth makes investments in product should be low for
higher profit
Always the initial foundation in a company
Dogs (low growth, low market share)
It is better to avoid products which are dogs in the company
Expensive to turn around and better to liquidate
Question Marks (high growth, low market share)
High Demands and low returns make them the most vulnerable
portfolio for products
In time will generate great absorption of internal resource
Investment should be at minimal or zero to generate positive
profit margins.
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US- Bangla Airlines is doing Business in eight domestic routes. These
are Dhaka, Chittagong, CoxsBazer, Jessore, Sylhet, Saidpur, Rajshahi,
Barisal .Now will be discussed Profit analysis basis of BCG Matrix.
Dhaka -Chittagong and CoxsBazer domestic route exist the Cash
cows that means profit and cash generation is high. Low growth
makes investments in product should be low for higher profit.
Dhaka-Sylhet domestic route also exist the Cash cows which
profits are high.
Dhaka –Rajshahi domestic route are existing dogs, here is not
profit gain .It is better to avoid this type of service.
Dhaka –Jessor national route are also existing dogs.
Dhaka-Barisal domestic route exist Questions Marks. That means
High Demands and low returns make them the most vulnerable
portfolio for services.
Dhaka- SaidPpur domestic route are existing Cash cows that
means profit is high.
4.6 Findings
Following finding has been found whilst working in US Bangla group
Management of US Bangla airlines is not up to the mark.
Some strategic decision proved as wrongly chosen
35. 35
The turnover of the employees is high and most of the cases
employees point fingers to the salary structure
Scarcity of efficient engineers is bountiful.
There is no financial department as US Bangla group merged in
accounts & finance section
There has no sales target of ticket seller.
Project analysis forecasting has proven as weaker numbers of
time.
Their Marketing system has proven as weaker than their few
competitors.
Chapter-Five
5.1 Recommendation
US-Bangla Airlines are existed some problems such as marketing
system and project analysis is weaker and employee turnover is high ,
technical core is weaker. This all problem will be solved if
management takes a good strategic policy and must will increase the
forecasting .
Conclusively, from the Ansoff Matrix and BCG matrix analysis, US-
Bangla Airlines should give priority in implementing the SO strategy of
using their strengths to gain in opportunities. This is especially evident
in US-Bangla Airlines Ansoff Matrix and BCG analysis. Their Star
products should be turned into cash cows as the market matures, as
minimal investment will turn in higher returns and profit.
36. 36
This extra cash can be poured into improving on products that are in the
question marks category. As these products are risky and could turn
into dogs, mass amount of cash pouring and brand image renovation
would be an advantage for US-Bangla Airlines. Implementing new
markets into existing markets and rising fast as the market leader will
be easier with strengths such as huge resource pool, established name in
the business and strong merger with other industry leaders.
Due to the scale and scope of US-Bangla Airlines’ operations it was
decided that the focus of this report would be surrounding scheduled
passenger flights. Further recommendations would include strategic
analysis to implement SBU level strategies. Due to lack of primary
research and restricted access to company in formation there may be
limitations in the findings and recommended strategy,
however it is believed that if the general direction of the suggested
strategic intent is followed it will lead to success.
Chapter-Six
6.1 Conclusion
37. 37
US-Bangla Airlines Limited is becoming brand name airline of
Bangladesh. They are trying to enrich the organization, aircraft &
facility with modern policies. If they establish good Strategic
Management, they can be able to develop & compete with the global
challenges. To compete with the other airlines US-Bangla should have
its master plan for global progress. To develop the brand name should
go for strategic analysis and implement the better strategic action. My
implementation of the study will provide a guideline for the
development of the organization if US-Bangla Airlines goes for Best
Strategic management Practices.
Chapter-Seven
Appendix
7.1 Bibliography:
1) https://en.wikipedia.org/wiki/Management
.2) Snyman, R., Kruger, C. J., (2004). The interdependency between
strategic management and strategic knowledge management.
Journal of Knowledge Management 8 (1), pp.5 – 19
3) French, S., (2009). Critiquing the language of strategic
management. Journal of Management Development. 28 (1), pp.6 –
17
38. 38
4) Brown, P., (2005). The evolving role of strategic management
development. Journal of Management Development. 24 (3),
pp.209 – 222
5) Sweeney, M.T., (1994). Benchmarking for Strategic Manufacturing
Management. International Journal of Operations & Production
Management. 14 (9), pp.4 – 15
6) Kyrgidou, L.P., Hughes, M., (2010). Strategic entrepreneurship:
origins, core elements and research directions. European Business
Review. 22 (1), pp.43 – 63
7) www. http://us-bangla.com/
8) http://www.us-banglaairlines.com/
9) http://www.us-banglaairlines.com/about-us/
10) http://www.us-banglaairlines.com/destinations/
11) http://us-bangla.com/index.php?
option=com_content&view=article&id=52&Itemid=37
