Export-Import-A2(51).docx

A.K.KHAN & COMPANYLTD ANDINDIA ANALYSIS(PART- 1& 2) 1
COMPANY AND COUNTRY ANALYSIS FROM THE EXPORT IMPORT PERSPECTIVE
(A.K KHAN & COMPANY LTD. AND INDIA ANALYSIS)
COURSE TITLE: EXPORT IMPORT MANAGEMENT
COURSE CODE: MKT-324
BY
MOHAMMAD EMRAN
ID. 11807051
TO
MAHFUZUR RAHMAN
LECTURER
DEPARTMENT OF MARKETING
CUMILLA UNIVERSITY
DATE: 26 JULY, 2021

PART-1
A.K KHAN AND COMPANY LTD ANALYSIS FROM THE EXPORT IMPORT
PERSPECTIVE
ID. 11807051

Table of contents
Contents
I. Introduction
- History and structure of the company) ----------------------------------------- 4
- The roles of import/export in A. K. Khan & company Ltd. ----------------- 5
- Objectives of the project ------------------------------------------------------------ 5
II. Import/Export Process
• Overview about the products that are imported or exported ------------- 6
• The steps of importing/exporting products ----------------------------------- 6/7
• Advantages and Disadvantages ------------------------------------------------ 7
• SWOT analysis based on export-import perspective ---------------------- 7/8
V. Solution and recommendations -------------------------------------------------- 9
VI. Appendix -------------------------------------------------------------------------------- 11/13

We are known by the companies we keep
I. INRODUCTION
History and Structure:
Abul Kashem Khan (exceptional regarded as A. K. Khan; five April 1905 – 31 March 1991)
became a Bangladeshi lawyer, industrialist and politician. In 1945, he founded A K Khan
& Company, certainly considered one among Pakistan's main conglomerates till 1971,
whilst it have become certainly considered one among Bangladesh's main
conglomerates. Khan served as a member of the Constituent Assembly of India and the
Constituent Assembly of Pakistan. He changed into a federal minister of Pakistan and
member in the Pakistan National Assembly (figure 1.1).
The story of one in all Bangladesh’s oldest industrial groups, A.K. Khan & Company Ltd.,
is intimately woven into the nation’s past, present and future. A.K. Khan & Company Ltd.
is one of the oldest and most renowned private sector organizations in Bangladesh. Late
Mr. Abul Kasem Khan, popularly known as A. K. Khan, established the company after the
Second World War in 1945. Mr. Abul Kasem Khan, started his business from Chittagong,
and after India and Pakistan separated in 1947, Chittagong emerged as the foremost port
city and business center of the country. Within a decade, A.K. Khan & Company Ltd.
became a leading industrial powerhouse and a major contributor to the national economy.
In the early 1950s Mr. A. K. Khan established Insurance Company, Financial Institution
as well as manufacturing industries in Textiles, Jute, Plywood, Tannery, Heavy Electrical
Goods, Shipping and Irrigation. From 1980s the Company started to grow through Joint
Ventures (JV) with famed Multinational Companies in Textile, Telecommunication and
Deep Sea Fishing. A.K. Khan & Company Ltd. (AKK) has been a leader among the ever-
developing enterprise giants of Bangladesh. AKK has performed a pioneering and
leadership position by organizing Financial Institutions, Deep Sea Fishing and
Telecommunication. Today, as company step into the future, A.K KHAN group maintain
our commitment in the business development of Bangladesh by exploring opportunities
from Agriculture to Heavy Engineering. With a successful records of Joint Ventures with

foreign companies for the last 3 decades, AKK has advanced key know-how in partnering
with massive MNCs across the globe and still continues to discover new joint project
partners for its various ventures (figure 1.2).
The roles of import/export in A. K. Khan & Company Ltd:
Salahuddin Kasem Khan, Managing Director of AK Khan Company, said AK Khan
Company would lease land to foreign investors, adding that the main objective of SEZ is
to create jobs in the country. Foreign investors stopped coming to Bangladesh due to the
complexity of securing land and instead went to Myanmar or Vietnam. “With the SEZ,
such complications are eliminated. The investors will have nothing to worry about, they
will only have to sublet the plots to us”. AK Khan acquired 200 acres of land in the central
district of Narsingdi, 50 km northeast of Dhaka, over a period of 78 years. Khan said high-
tech industrial units would get privileges in the SEZ, while the textile industry would be
discouraged. Priority areas are information technology, electronics, telecommunications,
healthcare, digital machines, agriculture and plastics, he said. Paban Chowdhury,
executive chairman of BEZA, said: GDP cannot grow without foreign direct investment
inflows, new technologies, jobs and product diversification. "We should get rid of the RMG
addiction." Japan and China have expressed interest in building SEZs in the country, he
said, adding that a group of Indians visited his office on Tuesday to learn about
government-run facilities. Government provided. “We are getting good feedback from
different countries. Exports will increase by $30 billion. According to research by the
Japan International Cooperation Agency, basic jobs will be created if 30,000 hectares of
land can be allocated for the construction of SEZs. SEZ’s will be developed by the private
sector to promote actors, said AKM Mahbubur Rahman, member of the Bangladesh Free
Zone Authority (figure-1.3).
Objectives of the project:
 Create optimal value for all of our stakeholders by adhering to the highest
ethical standards.
 In order to motivate employees to evaluate their performance and track work
results, rewards, sanctions, raises, career development and, if necessary, skills
development should be provided.
 Attract FDI into the country.
 Cost effective production facilities, Create Employment opportunity,
Technology transfer and skill development
 Development of Backward & Forward linkages.
 Constantly pursuing customer satisfaction through providing high quality
products and services.
 Efforts to create job opportunities to reduce the unemployment rate.
 To present Bangladesh economically in the world court.

II. EXPORT/IMPORT PROCESS
Overview of products:
The company is cooperating with the Indian company CEAT to build a tire factory. The
company is also building a private special economic zone in Narsindi, Bangladesh. When
it is completed, it will be the first private one. AKK plans to set up new businesses in
Hospitality, and A K Khan Special Economic Zone (AKSEZ). The products of A. K. Khan
& company Ltd are (figure 2.1),
 Tyree,
 Agro,
 Textile,
 Forestry,
 logistics,
 securities and stock,
 Telecom & IT,
 Hotel & hospitality,
 ICT & logistics,
 Real estate etc.
Upcoming Business Projects are (figure 2.2),
 AKCeycom Limited,
 A. k. Khan Penfabric
 Company Limited,
 AKK- Union (Bangladesh) Limited,
 Bengal Fisheries Ltd.
 Coats Bangladesh Ltd.
 CEAT A.K. KHAN Ltd.
The steps of importing/exporting products (Documentation):
It is known that in 1980 the AK Khan family was among the 10 largest companies or
business families in Bangladesh. The family had 12 businesses before the country's
independence. At the time, the wealth of this group was around seven and a half rupees.
AK Khan & Company establishes SEAT factory in Bangladesh in joint venture with SEAT
Tire Company of India. In addition, the company has also invested in the establishment
of SEZs, private ports and DCIs in Bangladesh. Currently, AK Khan Groups is

establishing an economic zone in Narsingdi district on private initiative. A Special
Economic Zone (SEZ) has been established on a 200-acre site since 2009. At the same
time, an internal container terminal is being built on a 50-acre site. Therefore, the
containers can be easily transported from Chittagong Port by river. This will reduce the
pressure of freight transport by road and rail (figure 2.3).
Advantages:
 Eliminate the unemployment rate of the country through recruitment of strong
and skilled workers
 Famous reputation, Financial capacity
 Good corporate association, Market knowledge
 Reliability, Goodwill, Responsibility
 Management expertise Management
 Broad strategic and territorial basis
 Basic public relations knowledge
 Access to senior management of large companies (chairmen, CEOs, CEOs),
 Good contact with government regulators
 Approach to policy makers, Cost powerful manufacturing facilities.
 Attract new funding into the country.
 Lead to export development.
 Development of Backward & Forward linkages, generation switch and skills.
Disadvantages:
 Legal obstacles.
 The skilled workforce is limited.
 Limited ease of export.
 Lack of stability policy.
 Political instability.
 Lack of policies, rules and regulations on foreign exchange
SWOT analysis based on export-import perspective:
SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. SWOT
analysis is a planning tool used to understand the Strengths, Weaknesses (figure 2.4).
Strengths:
It's a very famous group in our country. So it has stronger sides. So the strengths of the
company are shown below...
 High income of revenue in Bangladesh.
 Huge number of properties

 Its products are more accepted and popular in our countries than the products
of other companies
 Long experience over 67 years
 More joint ventures with well-known multinational companies
 Inheritance of best practices good trade and brand image
 Strategic alliances with multinational companies
 Strong local and international network.
 Nationwide sales and distribution network
Weaknesses:
As it is a reputable company, it has some weak points.
Very wide trade gap that is unfavorable balance of trade & balance of payment
position: Japan & USA based export but Asia based Import policy.
It has taxes problem.
Corrupted & inefficient Bureaucracy
Lack of listed as Least developed country in World Trade Organization.
Industrial Management Inefficiency.
It has legal problems
Opportunities:
It has a lot of such opportunities.
 International and national market segmentation opportunities Opportunity for
expansion
 Opportunity for growth
 Fast shipment of goods, raw materials and finished products.
 Nominal shipping / logistics charges for shipping.
 Global distribution center.
 Special storage for high value import and export items.
 Domestic market facilities.
 Career opportunity of skilled manpower in the company for reduce the
unemployment rate in our country.
Threats:
Although it is a reputable group of companies. It has threats like,
 competitors,
 political instability,
 bad weather,
 rising commodity prices
 Insufficient support towards innovative,
 fundamental/adaptive research and efforts
 Competitive Market.

III. Solution and recommendations
Without a doubt, The Company is a reputable company in our country. The current
strategic planning situation is good, but it has some problems in the process. If the
company can eliminate these problems, it will be a role model in the Bangladesh and
world trade business sector. The company has some problems in its legal area. If the
company improves their legal matters, they can create more popularity than the previous
ones. Since A.K. khan groups is an established organization, it needs to update its OB
policies. In some cases, they use traditional methods to justify and control their
employees. Therefore, this can cause a major crisis for the organization. The company
must also strengthen the work for the company. Society places high expectations on A.K
Khan & company Ltd.
Recommendations:
► Analyze the duties and responsibilities of the position. Talk to staff to reach
agreement on this requirement.
► Establish performance standards. The supervisor discusses this with the
employee to come to a mutual understanding.
► The development plan should focus on the strengths the person can build on
rather than trying to overcome weaknesses in character and temperament.
► Further check whether future work plans are feasible and achievable for junior
duty staff.
► Establish an effective monitoring and review system to assess employee
compliance with the system.
► Grant appropriate recognition for achievements or setting new goals.

References
® A.K. Khan at Wikipedia https://en.wikipedia.org/wiki/Abul_Kashem_Khan
® Vuli Nai Vulbo NA, Muktijoddhha AKKHAN https://youtu.be/MUJSRcfQpqQ
® Ahmed, Mushir (15 February 2009). "AK Khan groups to invest big fund in
infrastructure, tourism, textiles" http://www.thefinancialexpress-
bd.com/2009/02/15/58956.html
® Towhid Ahmed, Gazi. "AKKhan Co to develop special economic zone". The Daily
Star. Retrieved 14 January 2016 https://www.thedailystar.net/ak-khan-co-to-
develop-special-economic-zone-52211
® Industrializing Bangladesh: The pioneering role of A.K. Khan Groups
https://thefinancialexpress.com.bd/views/reviews/industrialising-bangladesh-the-
pioneering-role-of-ak-khan-1522509635
® Muhith asks NBR to reform high rate of corporate tax
http://www.thefinancialexpress-
bd.com/index.php?ref=MjBfMDlfMTZfMTNfMV8yXzE4MzU5Mw
® McKinsey paints buoyant future for RMG exports
http://www.thedailystar.net/newDesign/news-
details.php?nid=214751?date=2011-12-19
® AK Khan’s stake in AKTel goes to Japanese telecom
giant http://www.thefinancialexpress-bd.com/2008/09/20/45995.html
® DoCoMo to Pay $350 Million for TM International Stake
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a3Wr3qBd97Gc
® Vodafone plans to buy AK Khan’s stake in AKTel http://www.thefinancialexpress-
bd.com/more.php?news_id=23994&date=2008-01-31
® A.K. Khan’s stake in AKTel goes to Japanese telecom giant
http://www.thefinancialexpress-bd.com/2008/09/20/45995.html
® A K Khan Special Economic Zone https://youtu.be/T9LGaA1g28k
® Performance Appraisal System of A.K.Khan and Company
https://www.assignmentpoint.com/business/management/performance-
appraisal-system-of-a-k-khan-and-company.htm

IV. Appendix
Figure 1.3- History & structure of AKK & COMPANY Ltd.
Figure 1.1. AbulKashem Khan(founderof AKK & CompanyLtd.)
Figure1.2. History andstructure of A.K. Khan & CompanyLtd.

Figure2-1. Export/Import products of A.K. Khan Groups
Figure1.3. Pioneeringroleof A.K. khan& company Ltd.
Figure2.2. UpcomingBusinessProjectsof A.K. Khan& CompanyLimited

Figure2.3. Strengths pointof Tax reward in AAK & Company Ltd.
THANK YOU
Figure2.3. Export/Import Documentationof A.K. Khan EconomicZone

PART-2
‘INDIA’ ANALYSIS FROM THE EXPORT IMPORT PERSPECTIVE
ID. 11807051

Table of contents
Contents
I. Introduction (Socio-demographic information of the country)--------------------- 16
II. Export-Import Overview of the country------------------------------------------------- 17
III. PESTLE and SWOT analysis of the country (Export-Import Perspective)----- 18/21
IV. Problems and Recommendations-------------------------------------------------------- 21
V. Conclusion---------------------------------------------------------------------------------------- 22

I. INTRODUCTION
Socio-Demographic ofIndia:
India is the second most populous country in the world with nearly one-fifth of the world's
population. According to the 2019 revision of the World Population Outlook the population
stood at 1,352,642,280,444. Between 1975 and 2010, the population doubled to 1.2
billion, reaching the landmark rate in 1998. India is expected to overtake China as the
world's most populous country by 2024. [8] It is expected to become the first country with
more than 1.5 billion inhabitants by 2030 and the population is expected to reach 1.7
billion by 2050. Its population growth rate is 1.13%, compared with 2.3% from 1972 to
2012. 1983, ranked 112th in the world in 2017. India has more than 50% of the population
under 25 years old and over 65 years old under 35 years old. In 2020, the average age
of an Indian is 29, compared with China at 37 and Japan at 48; and by 2030, India's
dependency ratio will be slightly above 0.4. However, the number of children in India
peaked more than a decade ago and is currently on a downward trend. The number of
children under five peaked in 2007, and since then the number has steadily declined. The
number of Indians under the age of 15 peaked somewhat later (in 2011) and is also
declining now. India has over 2,000 ethnic groups, and all major religions are represented,
as well as four major linguistic families (Indo-European, Dravidian, Austro-Asian and
Sinotibetan languages) as well as two isolated languages: the nihali, spoken in parts of
Maharashtra and the Burushaski language, spoken in parts of Jammu and Kashmir
(Kashmir). 1,000,000 people in India are British and 700,000 US citizens live in India.
They represent more than 0.1% of the total population of India. Globally, only the African
continent exceeds the linguistic, genetic and cultural diversity of the Indian nation. The
sex ratio was 944 women per 1000 men in 2016 and 940 per 1000 in 2011. [18] This ratio
has trended upward over the past two decades after steadily declining over the past two
decades last century.

II. EXPORT/IMPORT PROCESS
Overviewof Export/Import:
India exports about 7,500 items to about 190 countries and imports about 6,000 products
from 140 countries. India exported $318.2 billion and imported $462.9 billion in raw
materials in 2014. The Government Economic Survey of India 2017-2018 notes that
Maharashtra, Gujarat, Karnataka, Tamil Nadu and Telangana account for 70% of India's
total exports. This is the first time the survey includes data on states' international exports.
The survey found a strong correlation between the state's gross domestic product (GDP)
per capita and its share of total exports. With a high GDP per capita but a low share of
exports, Kerala is the only major exception as the state's GSDP per capita is heavily
influenced by remittances. The survey also shows that India's largest companies
contribute a lower share of exports than countries such as Brazil, Germany, Mexico and
the United States. The top 1% of Indian enterprises account for 38% of total exports. The
interim export data for March, released by the Commerce Department at the end of April,
shows a dire situation. According to the data, Indian exports in March 2020 were just over
$ 21.4 billion, despite a promising performance last month. A drop of around 35% this
year, from March 2019 ($ 32.72 billion), hits a multi-year low and the numbers are sure
to drop further. It is important to note that exports fell in most product groups. Some
commodities saw a decline of more than 3,040%, in particular technical products, textiles,
meat, grains, plastics and chemicals, which have been the main drivers of export growth
in recent years. Due to the immediate spread of the COVID19 pandemic to many
countries, global demand has dropped significantly and many orders have been canceled.
In addition, supply chain disruptions due to continued foreclosures have worsened India's
export performance and the situation is expected to worsen in the coming months before
recovery begins. India's electrical machinery and equipment is 40% dependent on imports
from China. However, this has increased from 59.5% in 18 to 40% in 19. Although India
has increased production of low-end electronic components. Its main drawback is the
dependence of imports on China. The auto sector, which accounts for 7.5% of India's
GDP and 49% of manufacturing GDP, is facing a downturn. The coronavirus lockdown
has made the auto industry worse, as 10-30% of auto components are supplied by China.
If factories do not resume operations in China, it could negatively affect the industry.

III. PESTLE and SWOT ANALYSIS
PESTLE ANALYSIS OF INDIA:
Analysis of PESTLE from India. Bharat or Republic is a country located in Southeast Asia.
The total land area of India is 1,269,219 square miles, and it is the 7th largest country in
the world in terms of size and space. It is home to the 2nd largest population in the world
and the most populous democracy in the world. However, the total population of India is
over 1.4 billion people. It is the 4th most biodiverse country in the world. About 21.4% of
its area is forest. Indian culture recognizes and treats wildlife with tolerance and
compassion. Here is the pestle analysis of India as follows;
POLITICAL FACTORS IMPACTING INDIA:
LARGEST DEMOCRACY
India is a democracy in the world with over 1.4 billion people. Stability has played
an important role in attracting more FDI (foreign direct investment).
POLITICAL CORRUPTION
Sometimes this also has an impact on foreign direct investment. The government
recently launched public awareness programs to address this challenge.
CONTACT WITH DEMAND
India has very fruitful trade relations with various countries such as Russia,
Germany, Australia, Japan, USA, Malaysia, Singapore and many others.
MEMBERSHIP AND SUPPORT COUNCIL
India has membership and alliances with organizations such as Commonwealth of
Nations, G20, G8+5, Group of Five, G4, SCO, SAARC, BRICS, WTO and UN.

ECONOMIC FACTORS AFFECTING INDIA:
HIGHEST GDP
According to an estimate, India’s annual GDP (gross domestic product)
was 2.59 trillion dollars, and it’s the 6th highest in the world. The country’s per capita
income in 2020 was 1876 dollars, and it’s the 142nd most elevated in the world.
.
CORPORATE TAX RATE
If you compare India’s tax rate with other countries, it’s much lower and attractive
for foreign investors.
POWERFUL INDUSTRIES
India has the world’s most influential industry in various fields ranging from
medicine, textile, food, engineering, agriculture, mobiles, automobiles, technology, and
many more.
IMPORTS & EXPORTS
India’s top imports are precious stones, pearls, electronic goods, gold & silver,
crude petroleum, and many more. She trades her imports and exports with Qatar, the
USA, Saudi Arabia, Switzerland, UAE, and China. India’s major exports are readymade
garments, machinery, transport equipment, pharmaceutical products, jewelry, and
petroleum products.
SOCIAL FACTORS AFFECTING INDIA:
LARGE CONSUMER MARKET
India has the world’s 2nd largest consumer market comprising of 1.4 billion
people. Most importantly, she provides a plethora of cheap workforce to foreign
companies.
DEMOGRAPHY
India is a multi-lingual, multi-ethnic, and multi-religious country, and there are
approximately 447 spoken-languages in the country.
TECHNOLOGICAL FACTORS AFFECTING INDIA:
STRONG TECH INDUSTRY
According to an estimate, India is the 3rd most technologically developed country
in the world. That’s why the world’s leading tech companies
like Facebook, Google, Microsoft, Amazon, Apple, and many others have
established their offices and investing in the country.

LEGAL FACTORS AFFECTING INDIA:
 LAWS & REGULATIONS
ENVIRONMENTAL FACTORS AFFECTING INDIA:
 ENVIRONMENTAL CHALLENGES
.
SWOT ANALYSIS OF INDIA:
The capital of the country is New Delhi. India shares borders with Myanmar,
Bangladesh, Bhutan, Nepal, China and Pakistan. Before granting independence, the
British government divided India into two parts; the current Hindu majority is India and
the current Muslim majority is Pakistan. India's annual GDP in 2020 is estimated to be
US $ 2.590 billion and is the 6th highest in the world. Of which, per capita is 1876
dollars, and it is the 142nd highest in the world. About 1,393,409,038 (1.4 billion) people
live in India. Hindi and English are the two official languages of the country. About 80%
of people believe in Hinduism. Here’s the SWOT analysis of India as follows;
STRENGTHS OF INDIA:
banning or restrict the import of non-essential consumer goods,
complete control of different imported goods,
free import of machinery, equipment and development goods other
developments to support heavy industries, and ,
favorable climate for import substitution
removal of all import licensing for capital goods and raw materials, except for
a small negative list in 3 years
WEAKNESSES OF INDIA:
o Declining Share in World Exports
o Small Share of Exports in GDP
o Lower Rank in Competitiveness
o High Cost and Low Productivity
o Slippage in Manufacture - Exports Bank
o Thrust & Extreme Focus
o The spirit of liberalization in grassroots civil servants

OPORTUNITIES AVAILABLE TO INDIA:
 Business Investment
 Basic necessities
 Income Gap
 Liberalization and Globalization
THREATS INDIA HAS TO FACE:
 Extreme Poverty
 Population Bomb
 Hypertension
IV. PROBLEM AND RECOMMENDATION
After an in-depth study of the PESTLE & SWOT analysis of India, we’ve concluded that
India is indeed the world’s leading technologically developed country. Environmental
challenges, increasing population, and ethnic conflicts are some of the serious issues.
High blood pressure, population and scarcity of resources are the burning issues of the
country.
RECOMMENDATION:
► India should utilize its tech talents to attract foreign companies and resolve
other economic and social challenges
► India is expected to launch big plans to utilize its young talents, and economic
prosperity will solve most of the country's problems.
► The analysis must distinguish between the organization of India’s current
position and its future position.
► Always analyze in relation to your competitors such as others country, i.e.
better or worse than your competitors.
► Need for technology orientation, marketing orientation and quality orientation
► Need to Instill nationalism and export culture
►Need to export all kinds of goods
►Need for a stable Government at the Centre
►Be realistic about the strengths and weaknesses of the organization

CONCLUSION
The government should view the export manufacturing industry with an open mind and a
sense of confidence. The maximum benefit will flow to the export-oriented industry. If we
are to make our mark in the global economic community. All trade policies for the benefit
of India's trade and technology promotion should be the subject of a transparent dialogue
before policies are published. It is true that liberalization has taken place to some extent,
but it is still not comprehensive and should be drawn to reasonable conclusions, optimally
and to the full satisfaction of the exporting community.
References
® Demographics of India https://en.wikipedia.org/wiki/Demographics_of_India
® 2_chapter5.pdf
http://lib.unipune.ac.in:8080/xmlui/bitstream/handle/123456789/4013/12_chapter
%205.pdf?sequence=12&isAllowed=y
® India Exports and Imports of Product Groups 2019
https://wits.worldbank.org/countrysnapshot/en/IND/
® India (IND) Exports, Imports, and Trade Partners | OEC
https://oec.world/en/profile/country/ind
® India - Market Overview - International Trade Administration Aug 25, 2020
https://www.trade.gov/knowledge-product/exporting-india-market-overview
® SWOT and PESTLE analysis of India with export/import perspective
https://swotandpestleanalysis.com/pestle-analysis/.
THANKYOU

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