Rahimafrooz Superstores Ltd. launched Agora the first ever retail chain in Bangladesh in 2001. Agora promises a valuable shopping experience that provides quality and fresh products at the right price. It aims to consistently provide a remarkably satisfying and valuable shopping experience through a business that improves the quality of life for customers and team members.
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A report on supply chain of agora in bangladesh
1. Ahsanullah University of Science & Technology
An Assignment on Supply Chain Management System of
Agora
Course Code: BBA-411
Submitted To:
Mrinal Kanti Paul
Assistant Professor
School of Business
Ahsanullah University of Science
and Technology, Dhaka
Submitted By:
Business Junction
2. July 15, 2014
Mrinal Kanti Paul
Assistant Professor
School of Business
Ahsanullah University of Science & Technology
Subject: Letter of Transmittal
Dear Sir,
With due respect we, the undersigned students of BBA 4th year 1st
semester have reported on “Supply
Chain of Agora” under the course: Supply Chain Management.
Though we are in learning curve, this report has enabled us to gain insight into the core fact of supply
chain. We get an idea how to create a suitable supply chain for any company. So it becomes as an
extremely challenging and interesting experience. Thank you for your supportive consideration for
formulating an idea. Without your Inspiring this report would have been an incomplete one.
Lastly I would be thankful once again if you please give your judicious advice on effort.
Yours‟ sincerely,
Business Junction
ID Name
11.10.02.102 Manas Saha
11.10.02.108 Kashed Khan
11.10.02.116 Md. Abdul kaium
11.10.02.128 Shekh Md. Zahidul Hoque
11.10.02.129 Sukanto Biswas
11.10.02.130 Yaiz kawsar Kanak
11.10.02.138 Rony Chandra Acharjee
3. Acknowledgement:
I would like to express my deepest appreciation to all those who provided me the possibility to complete
this report. A special gratitude I give to our course teacher, Mrinal kanti Paul, whose contribution in
stimulating suggestions and encouragement, helped me to coordinate especially in writing this report.
He has been gracious enough to spare time out from his busy schedule for giving us all the necessary
assistance throughout the entire period of the semester and the report writing time. Without him help this
report might not have been a comprehensive one.
We would like to give special thanks to Mr. Harunur Rashid, Head of finance & accounts of Agora.
Furthermore I would also like to acknowledge with much appreciation the crucial role of the staff of
Harunur Rashid, who gave the permission to use all required equipment and the necessary materials to
complete the task. I would also like to thank to my team mate, who help me to assemble the parts and gave
suggestion about the task.
Mr. Bajan saha, accounts manager of Agora, he gives us some important information about the official
procedure and inspiration techniques of Agora to complete this report. They shared their practical
experiences and talk about their loyalty and commitment towards the organization. All of our group
members supported each other, throughout the making of this report and completing it successfully. We
have done some group discussions, where we shared each other„s views on the different issues to
complete this report
4. Table of Content
1.0 Chapter-One: Introduction
1.1 Objectives of the Report
1.2 Methodology of The Report
1.3 Limitation of the report
2.0. Chapter: Two- An Overview of Agora
2.1 About Agora
2.2 Corporate information
2.3 Organization Structure
3.0 Chapter: Three- Supply chain Strategy of Agora
3.1 Supply chain of Agricultural product
3.2 Supply chain of consumer goods
3.3 Supply chain of imported goods
4.0 Chapter: Five-Recommendation
5.0 Conclusion
6.0 References
5. Executive Summary:
Agora is the most popular superstore in Bangladesh. Agora„s interior is similar to most
Supermarkets in design and layout due to trends in marketing. It produce tends to be near the entrance of
the store. Various kinds of products and services are sold (at least 2500 products and services). Milk,
bread, and other essential items are located in the rear and other out of the way places. This is purposely
done to ensure maximum time spent in the store, strolling past other items and capitalizing on impulse
buying. The front of the store or Front-End is where one might find point of sale machines or cash
registers.
Agora has plans to implement self-checkout devices in their stores in an attempt to reduce labor costs as
well as bringing complete customer satisfaction. Understanding the historical context from which some
of today's organizational structures have developed helps to explain why some structures is the way they
are but Agora using a structured which is more horizontally capitalizing on the innovativeness of their
employees. Part of the reason, as this section discusses, is that organizational structure of Agora that has
a certain inertia the idea borrowed from physics and chemistry that something in motion tends to
continue on that same path. Because of this unique management process they have become the leading
superstore in the Bangladesh.
The managers of Agora have to make decisions as they develop an organizational structure, although they
may not be explicitly aware of these decisions. Agora is synonymous with market at low prices and name
brand quality products. The company basis of success and foundations cannot be credited to the current
management. Agora formula for success simply put is their relationship with customers, employees, and
technology that assists in forming relationships with their suppliers; places Agora as the top discount
retailer, history-development, and Growth Sam Agora to become the top discount retailer.
The Mega Corporation has eliminated top competitors such as Nandan and PQS to reign supreme over
the discount retailing market. Following international trend, discount retailing evolved due to frugality
during year 2000. Agora opened the first outlet in Dhanmondi in 2000. And see what the company could
do to improve. Agora needs to do research on the locations that it moves to. The customs and the people
need to be thoroughly looked into so a new store opens as smoothly as possible. Meeting could be held
with business owners and locals to answer in questions or concerns. Relationships need to be looked at
closely especially between the employees and suppliers so that it becomes one of give, take, and trust and
not so one sided.
6.
7. Chapter: One
1.0. Introduction
1.1. Objectives of the Report
The main objective of the report is to find out the supply chain management system of Agora. Our
honorable course teacher assigns us to prepare this report so that in the job market we can perform
effectively and efficiently and also enlighten the goodwill of our university as well as our teachers. Other
objectives of this report are,
To know the supply chain process of Agora.
To know the organizational structure of Agora.
To know the product of their store which is offering to the customers?
How to create better supply chain?
To know the product promotion strategy of Agora.
To know the communication structure of Agora.
To know their additional services of Agora.
To know their latest lunching product of Agora.
To know its information system.
To know their office management
To know their control system.
To know their strength, weakness, opportunity & threats.
To know their Security system etc.
1.2. Methodology of the Report:
Secondary information: Secondary information has collected by reviewing websites, journals,
brochures and some other relevant documents.
Observation: We were visited Gulshan branches of Agora that time we mainly observed their
products, products prices, their shop„s environment as well as their product prices
8. 1.3. Limitation of the report
In every work there exist some limitations that we face while conducting different activities. In the
process, we also come across certain limitations that hampered the actual findings and analysis of my
research work. Some of these notable limitations can be identified are:
Employees of Agora are usually busy with their daily work and activities, so it is quite impossible
sometime to get time from them for getting information about our report.
Sometimes the authority does not provide their internal information which is very difficult to collect from
any other sources.
To know the information of Agora we had to Gulshan branches of Agora. This place is restricted for
outsider. This is not their shop. This is their office. So it was quite difficult to gather information.
We did not have any proper financial support and limitation of time is also a barrier for making this
report.
9. Chapter: Two
2.0. An Overview of Agora
2.1. About Agora
The retail chain or Rahimafrooz Superstores Limited under the brand Agora had been started in the year
2001. This has been the most dramatic shift in Rahimafrooz’s interests as it represented a diversification from
its main competencies power and the industrial sector. The company has already opened four outlets-
Rifles Square, Gulshan Avenue, Maghbazar and Mirpur Zoo Road in Dhaka and many more are in
progress in Chittagong and other cities of the country.
The superstores are open from 9 am to 8 pm every day. Rush of customers is experienced in the morning
and evening. Most of the employees of Agora are young and well-educated, some with Honor‟s and BBA
degrees.
Agora superstores are currently focused in food retailing, ranging from a wide variety of fresh vegetables,
fruits, meat and fish to grocery, bakery, dairy, personal and household products. Agora provides its
customers with guaranteed quality and freshness. It carries more than 30000 varieties of products and has
plans to expand its product portfolio to carry other ranges of consumer products in the coming years.
Other supermarket brands have since emerged but Agora continues to be the leader and trendsetter.
Agora has been the venue of launching of Thai products, which have by now become common place.
Californian apples were launched here as have been Agora buys products direct from the growers, which
benefits the latter as well as the customers. The products are procured under the direct supervision of its
officials who maintain strict procurement and marketing standards. Products on the shelves are regularly
monitored for expairy dates.
Over 20 million have purchased products at Agora since the opening of Agora„s first superstore, with
10,000 customers using the Agoras everyday on an average. Rifles Square and Gulshan supermarkets
pull more crowd than the other two. Customers prefer using both cash and credit cards. Agora constantly
launches attractive promotions like Bazimat, Value Week or Super Value Offer or Diamond Ring Offer.
The promoter of the Agora project, Rahimafrooz, is one of the most respected companies in Bangladesh
manufacturing and marketing stored power systems for the automotive industry.
All of Rahimafrooz„s activities are in the service sector, focusing on consumers, an official of Agora„s
operating company Rahimafrooz Superstores Ltd., said. The Agora project was a ground-breaking project
that underlines the potential for harnessing the latent market in Bangladesh, said an executive of a leading
corporate house adding, they have produced a service offering of international standard.
10. 2.2 Corporate information
The Rahimafrooz journey dates back to the early fifties when Late Mr. A C Abdur Rahim founded a
small trading company and paved the way for making of one of today„s leading
Bangladeshi business conglomerates. Over the decades, Rahimafrooz has grown in size, scale, and
diversity. The Group today has seven Operating Companies (SBUs), three other business ventures, and a
non-profit social enterprise. As of 2014, the Group currently employs more than seven thousand people
directly and a further twenty thousand indirectly as suppliers contractors, dealers and retailers. While our
Group activities are coordinated from the Rahimafrooz Corporate Office (RACO), we have eight
Strategic Business Units (SBUs), three other business ventures, and a not-for-profit social enterprise.
Rahimafrooz strengthened their market leadership at home while reaching out to international markets.
Ranging from automotive aftermarket products, energy and power solutions, to a world class retail chain
the team at Rahimafrooz is committed to ensuring best in class quality standards and living the Group„s
four core values –
Integrity, Excellence, Customer Delight and Innovation
2.3 Organization Structure
Manager
Operation
Manager
Functional Head
Chief Executive Officer
Managing Director
HR Audit Marketing
& sales
Accounting
& Finance
Production Internal
Audit
ManagerManagerManagerManagerManager
ExecutiveExecutiveExecutiveExecutiveExecutiveExecutive
11. Vision Statement of Agora:
Mission Statement of Agora:
To give customers confidence and
establish an environment of trust
Offer better range of quality
products.
Establish rational prices &
Offering a clean, healthy and a
friendly environment to customers
for shopping
12. Chapter: Three
3.0 Supply chain Strategy of Agora
Supply chain of Agora is not a lengthy process. Basically their supply chain is totally warehouse-based.
Agora has a large warehouse. At first they store the entire product from different manufacturer in their
warehouse. The transportation cost is totally born by the manufacturing company. Then the stored
products are distributed through the Agora‟s own vehicles to its several outlets. There is no intermediary
between warehouse of Agora and manufacturing company like Unilever. No product directly comes to
the outlet without the hand of warehouse. These are the supply chain of Agora at a glance. Now the
product wise supply chain explanation of Agora.
3.1 Supply chain of Agricultural product
The supply chain of agricultural product of Agora is too much flexible. Agora has contract with some
agricultural firms like vegetables firms, hatchery, poultry firms, mushrooms firms, dairy & flesh firms
(milk, beef, mutton) etc. These firms supply fresh agricultural items as daily, 2 days, 3 days, weekly, bi-
weekly or monthly based to Agora. The transportation costs are taken by the producer. All the products
are first come in warehouse. Then these deliver to outlets.
.
3.2 Supply chain of consumer goods
13. In case of consumer goods Agora has contract with the manufacturer like Unilever, Reckit Benkizer,
Square, Keya, Kohinoor Camicales etc. This company directly deliver product to the warehouse of
Agora. There is no intermediary between this two. The products are never come to the outlets without the
hand of warehouse.
3.3 Supply chain of imported goods
In case of imported goods, Agora collects goods in two ways:
1. Directly import
2. Purchase from import house
a) Directly import
Here Agora directly imports goods from the foreign manufacturer without any intermediary. In this case
the importer is Agora and the exporter is foreign manufacturer. The products come to the warehouse to
outlet to consumers.
Manufacturer
Customer
OutletSupplier Warehouse
Manufacturer
of Abroad
Customer
WarehouseSupplier Importer
Outlet
14. b) Purchase from import house
In Bangladesh there are many import houses that import goods from abroad and sell it to the buyer like
Janata Foods, Sorwar & Brothers etc. Meena Bazar purchases products from this house. Here the
importer is the import house not Meena Bazar. This is the basic difference between the directly import
and purchase from the import house.
C) Supply chain of Private Brands
Agora produces many private brand products in their own plants. These products are mainly herbal
products like Chandan, Black Tea, Mehendi, Uptan etc. The process of producing these products is
almost same with the traditional supply chain process. The supply chain is:
Process view of supply chain of Agora
There are two different ways to view the process performed in a supply chain (Supply Chain
Management).
1. Cycle view
2. Push/Pull view
Manufacturer
of Abroad
Customer
WarehouseSupplier
Import
House
Outlet
Manufacturer
Customer
OutletSupplier Warehouse
15. Based on those two views, the manager of agricultural foods of Agora explains the process of supply
chain followed by Agora. Those are explained below
1. Cycle View:
There are four types of cycles-
a) Customer order cycle
b) Replenishment cycle
c) Manufacturer cycle
d) Procurement cycle
When the customer order product but that product finish already, they try to get the product form other
outlet. This theory is getting from Sunil Chopra
17. Chapter: Five
4.0 Recommendation
Agora is still not being able to accommodate enough customers. This is a general view of the customers
surveyed, over half suggesting an increase. Unless this problem is solved quickly, the competitors of the
store may take away those “unsatisfied” customers from Agora.
The costs of most perishables are very high compared to the general trend of the market. No matter how the
marketing manager tries to explain their reasons behind this high price the customers would invariably tend to
shift lo the sources that provide them at a lesser price if they do not feel that the price they are paying is
worth the convenience.
The number of staff at the store should be increased because the customer feels that they spend more time
to pay their shopping. This may be a source of more convenient of the customer.
Agora must arrange their product as a way that customers can easily purchase all kinds of products at a
short time, because most customers remain busy so maintain their products with systematically for
reducing the time consumption.
Agora must increase the superior customer service by arranging best quality good
Environment providing discounts and placing the convenient outlets for customers
Home resident
5.0 Conclusion
Agora‟s main concept hinges on its ability to meet the needs of a more advanced society where the
working wife prefers to make at-a-time purchases of daily needs less than one roof. Form a careful
analysis of the ideas and marketing concepts at work in the operation of Agora, it has been possible to
obtain an insight to the essential marketing practices adopted by such retail stores. In a highly volatile
business environment the quest for excellence does not end easily. By adhering to proper marketing
strategies and putting its target market in topmost priority, Agora has been able to edge towards
competitiveness with few formidable rivals to challenge its present position Evidently, by virtue of its
high quality” assurance, provision of a wide assortment of local and foreign products, and a touch of
luxury to appeal to the mind of shoppers, Agora has been able to establish itself as a store that makes
every effort to cater to customer satisfaction.
18. 6.0 Reference
1. Internet-1, 28 June 2014 (1.00 pm)
(http://www.rahimafrooz.com/rahimafrooz_company_profile/about_compnay.asp)
2. Internet-29, 28 June 2014 (1.00pm)
(http://www.rahimafrooz.com/best_superstore/agora.asp)
3. Internet-1, 25 June 2014 (11.07am)
(http://wwww.rahimafrooz.com/rahimafrooz_company_profile/milestones.asp)
4. Internet-1, 27 June 2014 (7.00pm)
(http://www.rahimafrooz.com/best_superstore/agoral.asp)
5. Internet-1, 28 June 2014 (9.00pm)
(http://www.rahimafrooz.com/best_superstore/agoral.asp)
6. Internet-1, 29 June 2014(1.00pm)
(http://www.rahimafrooz.com/best_superstore/agoral.asp)
7. Internet-1, 30 June 2014 (7.00pm)
(http://www.scribd.com/doc/112798029/Agora-Supply-Chain)
8. Internet-1, 28 June 2014(7.00pm)
(http://www.rahimafrooz.com/Default.aspx)