Introduction to corporate portfolio analysis
Bashundhara Group is one of the leading corporate giant in the business world. It has started
operation “For the People, forthe country” as a real estate venture known as “Bashundhara” under
the aegis of the Group’s first concern – the East West Property Development (Pvt) Ltd in 1987.
This project turned out to be a very successful one and had helped foster the growth of trust and
confidence of the urban people in “Bashundhara”. More enterprises were established in the early
1990s, the group experienced this tremendous growth in a span of less than 10 years. The Group
now has over 20 major concerns located in different areas of the country. The multi-faceted
shopping mall and recreation centre called the Bashundhara City has added glamour to the growth
of the group. The Bashundhara City Development Ltd is one step ahead in the longstanding effort
to strengthen links with the general people through the unique offering of commercial operations
and recreation facilities under single roof.
Company summary
Bashundhara Group is one of the most prestigious and experienced commercial and industrial
conglomerates in Bangladesh. The Group took off from the incipient period after establishment of
East West Property Development (Pvt.) Ltd. a real estate concern, which is known as
“Bashundhara”.
Since inception, Bashundhara Group has been actively contributing to the national as well as global
economy by way of effective utilization of resources, using raw materials, production and
marketing high quality products at the most competitive prices and creating employment
opportunities. Bashundhara is now operating with fourteen vital enterprises.
•Current value of the total assets of the enterprises of Bashundhara Group would be about Tk.
15000 million equivalents to approximately US$ 300 million.
• Total turnover of the business amounts to around Tk. 16000 million equivalent to US$
325million.
•Presently 8100 people are employed in various enterprises of the group. Besides, through its
multidirectional economic activities, Bashundhara has created employment opportunities to over
30,000people.
The businesses of this group are Basundhara Paper, International Convention City Basundhara ,
Basundhara City, East-West Property, Basundhara Logistics, LP Gas, King Brand Cement,
Basundhara Steel & Engineering, Basundhara Food & Beverages, Basundhara Tissue, The
Bangladesh Protidin, banglanews24, Basundhara Cement, Basundhara Dredging, Radio Capital
and The Daily Sun. And all of these businesses are going in those fields of business. Through
forward and backward linkage, the enterprises of Bashundhara Group have encouraged
development of various industrial and commercial units in the country. With its expertise in
different fields and extensive human resources, Bashundhara has undertaken various projects. So,
anyone can understand that it is one of the largest groups of industries in this country.
Portfolio analysis
Portfolio analysis is a systematic way to analyze the products and services that make up an
association's business portfolio. All associations (except the simplest and the smallest) are
involved in more than one business each of these is one of the association's strategic business units
(SBUs). Each business consists of a portfolio of products and services.
Portfolio of Bashundhara Group
Enterprise 1- Real Estate
East West Property Development (PVT) Ltd – The flagship company of Bashundhara Group was
founded in 1987 to address the ever increasing housing needs of the citizens in Dhaka.
Enterprise 2- Media & Entertainment
It now owns Bangla dailies – “The Kaler Kantho” and “The Bangladesh Pratidin”, English
newspaper the “Daily Sun” and bilingual online portal “banglanews24.com. Recently has launched
FM radio “Radio Capital”.
Enterprise 3- Steel
Bashundhara Steel Complex Ltd- It was established in 1999 for producing various steel products
used in irrigation, natural gas-based and certified by ISO-9001.
Enterprise 4- Cement
Meghna Cement Mills Ltd- The largest manufacturing unit of Bashundhara Group and has
International Quality Standard certificate (ISO 9001:2008). The company markets its product
under the registered trade mark "King Brand Cement".
Bashundhara Cement- Sole brand of Bashundhara Industrial Complex Ltd (BICL)
Enterprise 5- Paper
Bashundhara Paper Mills Ltd- Unit 1 has so far been producing White Writing and Printing papers,
Colored Printing papers, different types of colored wrappers, Off-set papers, Newsprint and
handmade Cigarette (Bidi) papers of International quality and enjoying market share of above 30%
of the country.
Bashundhara Paper Mills Ltd- Unit 2- Formaly known as Bashundhara News Print & Duplex
Board Industrious. It also produces writing and printing paper for local consumption and also for
printing text book for NCTB.
Bashundhara Paper Mills Ltd- Unit 3 formely known as Bashundhara Tissue Industries.The
import-substitute industry has attained ISO 9002:1994 certification for its quality management
system and ISO 14001:2004 certification for its environment management system.
Brands- Bashundhara A4 paper, Bashundhara Khata, Bashundhara Paper, Bashundhara Hand
gloves, Bashundhara Tissue, Monalisa Sanitary Napkin, Bashundara Baby Diaper.
Enterprise 6- Energy
Bashundhara LP Gas Limited- First private LPG Plant in Bangladesh. Product availability in 45
KG cylinder, 30 KG cylinder, 12 KG cylinder.
Enterprise 7- Services
International Convention City Bashundhara (ICCB)
Bashundhara City- 12th largest shopping mall in the world and the biggest shopping mall in
Bangladesh.
Enterprise 8- Shipping and Logistics
Bashundhara Steel and Engineering- BSEL shipyard has built 2 nos, 1800 MT dwt vessels and
construct ocean going multipurpose and container vessels in near future.
Bashundhara Dredging- Has eight major river transportation dredging facilities.
Bashundhara Logistics Ltd - Founded in 2004, emphasizes problem solutions and customized
approaches to the treatment of forward and backward linkage movements.
Enterprise 9- Food and beverages
Bashundhara Food & beverage Industries Ltd- Bashundhara Atta, Maida, Suji, Bashundhara
Mustard Oil,
1. Selecting appropriate portfolio matrix
Before starting any other analysis, we have decided to build portfolio matrix of Bashundhara
Group that will represent its various SBUs. To develop the firm’s portfolio position. We know that
to analyze the portfolio of an organization Boston Consulting Group (BCG) matrix or General
Electrics (GE) matrix can be used. One of these matrix is selected based on the similarity of the
SBUs. As the SBUs or enterprise of Bashundhara Group is very much diversified we have it useful
to analyze both the matrices.
2. Assessing industry attractiveness:
Attractiveness
Criteria
Wei
ght
Ratin
g
Weighted
Score
Size 0.09 4 0.36
Growth 0.15 5 0.75
Pricing 0.12 4 0.48
Market Diversity 0.03 2 0.06
Competitive
Structure
0.05 3 0.15
Industry
Profitability
0.12 4 0.48
Technical Role 0.04 3 0.12
Inflation
Vulnerability
0.03 2 0.06
Cyclicality 0.05 3 0.15
Customers
Financials
0.09 4 0.36
Energy impact 0.05 4 0.2
Social 0.04 3 0.12
Environmental 0.05 3 0.15
Legal 0.04 2 0.08
Human 0.05 4 0.2
Total 1 Out
of 5
3.72/5
Basundhara group is one of the renowned group of business in Bangladesh. They have wide product line
and category and a strong customer base. When they enter into a new industry with new product category
they assess the attractiveness of the industry on the basis of some potential criteria. There attractiveness
measurement process is-
1. Selecting criteria: They select the criteria on the basis of the specific industry. These criteria are vary
from industry to industry.
2. Weight: They give weight on different criteria on the basis of the specific criteria importance. All together
the summation of all weight of the specific criteria is 1.
3. Rating: Basundhara Group rate all the criteria on the basis of 5 point scale, where point 5 is the highest
valued point of importance and point 1 is the lowest valued of the importance.
4. Weighted Score: the multiplication of weight and rating of the specific criteria gives the weighted score
of the criteria and the summation of all weighted score is the value of attractiveness of the industry.
Evaluation:
The weighted score of industry attractiveness of Basundhara 3.72 in the scale of 5.00. This is a
moderate attractiveness score for the Group. They should focus on legal, market diversity and
inflation vulnerability criteria to improve the score.
3. Competitive position assessment:
In competitive positioning assessment stage Basundhara does the same task, which is done at the
industry attractiveness assessment stage. At this stage they the select some key success factors
which is considered at the situation of gaining success from the competitors. Then they set weight
and rate to the specific factors and the accumulation of weighted score gives the result of
competitive position of Basundhara Group.
Key Success Factors Wei
ght
Rati
ng
Weighted
Score
Market Share 0.1 1 0.1
SBU growth rate 0.03 3 0.09
breadth of product line 0.03 3 0.09
sales distribution effectiveness 0.2 5 1
proprietary and key account
advantages
0.01 1 0.01
price competitiveness 0.04 2 0.08
advertising and promotion
effectiveness
0.06 2 0.12
facilities, location and newness 0.05 3 0.15
capacity and productivity 0.02 3 0.06
experience curve effects 0.05 4 0.2
raw material cost 0.03 2 0.06
value added 0.1 4 0.4
relative product quality 0.1 4 0.4
R & D advantages/ position 0.09 4 0.36
Cash throw – off 0.09 3 0.27
Caliber of personnel 0.04 3 0.12
General Image 0.03 2 0.06
Total 1 3.57
Evaluation:
The Competitive position score of Basundhara Group is 3.57 in the scale of 5.00. This score is also
satisfactory enough but they should concentrate on Market Share, proprietary and key account advantages,
price competitiveness, raw material cost to improve the score
4. Threats and opportunities analysis of bashundhara group:
We know analyzing the opportunities and threats involves us to find the positive and negative
forces that is beyond our control and that can define our plan as well. As we do not have any
control over these elements we need to change our activities and planning to cope with the
changing environment. When to analyze the threats and opportunities influencing factors can be
divided into three distinctive group namely market factors, industry factors and supply factors.
Let’s see how these the factors influence bashundhara group.
Market factors
Market factors are the factors that helps the company analyzing the customers and their
surroundings. Like size of the market, nature of the demand, export opportunities etc.
bashundhara group need to consider the following factors when to analyze the market.
Size of the market
Bashundhara is a diversified company having many SBUs that allows it to serve a handsome
number of customers. When one SBU does not lead enough profit other will help to fill the gap.
Overall growth rate
Growth rate of bashundhara group is quiet satisfactorious and it helps the company to hold the
leading position in many of the product market. It will be considered as an opportunity for the
company. Though many of the products are in mature market but it introduces new products and
SBUs on a regular basis to keep the growth rate ever increasing.
Stage of product marker evolution
As this is a group of companies that means it has a lot of SBUs that varies in stage of product of
life cycle. Many product as the LP gas, cement, real state are in the maturity stage and some others
are at the growth stage as media and entertainment, service and logistics etc. some others are at its
introduction as food and beverage.
Segment growth rates
Segments of different products have different growth rate it is positively related with the stage of
product life cycle. For emerging product like the food and beverage it is high but for the product
that is in mature stage it is low.
Buyer concentration
Buyer concentration is positively related to the number of buyers for the product market. For
FMCG product buyers’ concentration is not high but for industry products like cement, steel and
other raw materials it is very high.it is a threat to the company.
Price sensitivity and stability
This is absolutely dependent on the number of substitute available for the product. When the
number of substitute product is available the price sensitivity is likely to be high but when there is
very limited set of substitute is available price sensitivity is low.
Detribution channel
Bashundhara group uses different distribution channel for different product. Like for FMCG
product it uses intensive distribution channel but for industry product it uses selective as well as
for some cases exclusive distribution channels. It actually depends on the nature of the product.
Demand cyclicity and seasonality
Many of the product face the ups and downs of demand based on seasonality and cycle of demand.
Like worm cloth cold protecting toiletries etc. bashundhara group has diversified product portfolio
that helps the company keep the profit at expected level despite having this effect of the sales of
the product.
Industry factors
These factors are related to the structure of the industry where the company does business. Industry
factors are considered as the key influencing factors to decide whether an industry is attractive or
unattractive. These factors are as follow-
Product differentiation
It signifies the level of product uniqueness that make the product of one company different from
the other companies’ product. Many of the product of bashundhara group has this advantage as the
type of product allow the company to customize the product according to the innovative ideas of
the R&D department of the company as media and entertainment and the food and beverage.
Sellers’ concentration
If the number of seller is very limited in terms of buyer of a product the product is a sellers’
concentrated product. This is a situation where the company enjoys some benefits like setting high
price, designing distribution channel to reduce cost etc. Some of the product of the company have
this benefit as like LP gas.
Barrier to entry
When the new entrants face difficulties to enter into the industry there is barrier to entry to the
industry. If the industry has high entry barrier the existing companies will enjoy some absolute
advantages. Product like LP gas and cement have this issue.
Vertical integration
When the company has the opportunity to merge with the suppliers and distributors there is the
issue of vertical integration. Bashundhara group can have this advantage for cement and FMCG
products.
Capital intensity and industry profitability
When the business needs huge investment to run and the profitability is not promising the industry
is not attractive. But if the ROI is enough investment is not an issue.
Economies of scale and capacity utilization
Economies of scale refers to the idea of reduction of average cost with the increase in volume of
production. Product like cement, papers and food and beverage of bashundhara group enjoys this
opportunities by using the full capacity.
Change in product and process technology
Technology may be both an opportunity and a threat depend on the impact in the industry.
Sometime new technology in production process can lead to the cost minimization.
Supply factors
Factors that affect supply of raw materials. If the supply of raw materials is not available the
company will suffer from the price increase and frequent shortage of raw matarials.
Availability and balance of demand- supply
Availability of raw material defines whether the supply of raw material will meet the demand of
the product. Some of the industry products like cement and gas may face shortage of raw materials.
Supplier’s concentration
If the number of suppliers are very low the price of raw material will be high and the bargaining
power will be at the suppliers end. Threats will high for the company and risk of price increase
will intense.
Import/ export barrier
When the government has policies for import and export that limit the scope the industry will
become unattractive. The company needs to evaluate this issue first before entering into an industry
to remain save.
5. Critical Resource and skills of Bashundhara Group
Bashundhara group is a prominent company it has some unique resources and skill that help the
company to hold its competitive position.
Strengths: It’s very famous group in our country. So it has more strong sides. So the strong sides
of the Company are shown below….

Huge amount of capital:
As a big & renowned company Bashundhara group has enormous amount of capital that helps to
make expansion of its business unit.
The management system is strong:
The strong management system helps a company to make effective decision. Bashundhara Group
has very strong management system that makes easier company decision making process.
The employees are very qualified:
The qualified employees are very integral part of a company’s stakeholder. Bashundhara group
has 15000 qualified employees that makes easier company’s task and activities.

The workers are practical.
The workers are practitioner to make any types of activity. They maintain code of conducts &
professionality in terms of their activity

The products are acceptable and popular in our countries than other company’s product.
Bashundhara group provides more value in its product than other company. Their brand value and
market share also high than their competitors.
Huge amount of properties.
Bashundhara group is one of the largest industrial conglomerates of Bangladesh. This is the
stronger point to make expansion of its business.
5.1 SWOT Analysis of BAshundhara Group
This is top qualitative evaluation of the key factors affection the company. To know how the
company fairs will and how interesting an investment would be, our analysis follow the market on
a daily basis and you could benefit from their valuable expertise to maximize you knowledge.
Strengths
•Huge amount of capital.
•The management system is strong.
•The employees are very qualified.
•The workers are practical.
•The products are acceptable and popular in
our countries than other company’s product.
•Huge amount of properties.
Weaknesses
•It has legal problems.
•It has taxes problem.
Opportunities
• International and National market segment
opportunities.
•Expansion opportunities.
Threats
•competitors
•Political instability
•Bad weather
•Growth opportunities •Increase raw material price
Findings of SWOT analysis
Through SWOT analysis, we try to find out strong and weak point of the company. Here we find
out strong points more than weak point. The employees of the company are highly qualified. They
enjoys work and do not want to avoid it. The employees of the company work hard to achieve the
organizational goals through self-accept the responsibility without any hesitation. Its market
position is good comparing to others. The working condition of the company is comfortable.
6. Plotting the matrix
6.1 Growth- Share Matrix (BCG Matrix) of Bashundhara Group
Stars- Stars refer the leader position, farthest down on experience curve relative the competition.
Bashundhara Paper, International Convention City Bashundhara, East- West Property Ltd are
currently on the Stars position of Bashundhara Group.
Cash Cows- Cash cows generate funds for other SBUs, maintain market share, maintain quality,
increase usage rate. Bashundhara LP gas, Bashundhara paper, Bashundhara Tissue, The
Bangladesh Protidin, banglanews24, Bashundhara Cement are on the Cash Cows stage.
Question Marks- Low market share in the expanding industry, slow progress in the experience
curve, need substantial cash to improve position. Bashundhara logistics, Bashundhara dredging,
Bashundhara Steel& Engineering, King Brand Cement, Bashundhara Food & Beverages are
currently surviving Question Marks arena.
Dogs- Low market share in mature or declining industry, slow progress in experience curve,
concentrated on niches or limited effort. Bashundhara dredging, Radio capital, The Daily Sun are
on the declining stage or Dogs.
High Relative market share low
High Market growth low
Figure 1: Growth -Share Matrix (BCG Matrix) of Bashundhara Group
Market attractiveness
6.2 GE- Matrix of Bashundhara Group
GE Matrix of Bashundhara Group has been described based on business unit strength and market
attractiveness of current circumstances of business arena.
High Medium Low
High Invest heavily for
growth
- East-West Property
Ltd
- Bashundhara City
- International
Convention City
Bashundhara
- Bashundhara Paper
Invest selectively &
build
- Bashundhara logistics
- Bashundhara Food &
beverages
Develop for income
- King Brand Cement
Medi
um
Invest selectively &
build
- Bashundhara Tissue
- The Bangladesh
Develop selectively for
income
- Bashundhara Steel &
Engineering
Harvest or divest
- Radio capital
Protidin - Banglanews24
Low Develop selectively &
build on strengths
- Bashundhara cement
Harvest
- The Daily Sun
Divest
- Bashundhara dredging
Business unit strength
Figure 2: GE Matrix of Bashundhara Group
Conclusion
Bashundhara Group is one of the biggest corporations in our country. From above discussion
we can say that the corporation portfolio is diversified and balanced. Company can reduce
many of its risks by using the portfolio analysis of above scenario. Now-a-days it wants to
enter in export business to use its unused capacity as well as to reduce risk.
References
Bashundhara Group, retrieved 27 April 2015, from http://www.bashundharagroup.com
GE Matrix, retrived 27 April 2015, from http://www.wikepedia.org/wiki/ge_matrix
Growth-Share Matrix, retrieved 27 April 2015, from http:// www.wikepedia.org/wiki/growth-
share_matrix
14

Portfolio analysis of basundhara

  • 1.
    Introduction to corporateportfolio analysis Bashundhara Group is one of the leading corporate giant in the business world. It has started operation “For the People, forthe country” as a real estate venture known as “Bashundhara” under the aegis of the Group’s first concern – the East West Property Development (Pvt) Ltd in 1987. This project turned out to be a very successful one and had helped foster the growth of trust and confidence of the urban people in “Bashundhara”. More enterprises were established in the early 1990s, the group experienced this tremendous growth in a span of less than 10 years. The Group now has over 20 major concerns located in different areas of the country. The multi-faceted shopping mall and recreation centre called the Bashundhara City has added glamour to the growth of the group. The Bashundhara City Development Ltd is one step ahead in the longstanding effort to strengthen links with the general people through the unique offering of commercial operations and recreation facilities under single roof. Company summary Bashundhara Group is one of the most prestigious and experienced commercial and industrial conglomerates in Bangladesh. The Group took off from the incipient period after establishment of East West Property Development (Pvt.) Ltd. a real estate concern, which is known as “Bashundhara”. Since inception, Bashundhara Group has been actively contributing to the national as well as global economy by way of effective utilization of resources, using raw materials, production and marketing high quality products at the most competitive prices and creating employment opportunities. Bashundhara is now operating with fourteen vital enterprises. •Current value of the total assets of the enterprises of Bashundhara Group would be about Tk. 15000 million equivalents to approximately US$ 300 million. • Total turnover of the business amounts to around Tk. 16000 million equivalent to US$ 325million. •Presently 8100 people are employed in various enterprises of the group. Besides, through its multidirectional economic activities, Bashundhara has created employment opportunities to over 30,000people. The businesses of this group are Basundhara Paper, International Convention City Basundhara , Basundhara City, East-West Property, Basundhara Logistics, LP Gas, King Brand Cement, Basundhara Steel & Engineering, Basundhara Food & Beverages, Basundhara Tissue, The Bangladesh Protidin, banglanews24, Basundhara Cement, Basundhara Dredging, Radio Capital and The Daily Sun. And all of these businesses are going in those fields of business. Through forward and backward linkage, the enterprises of Bashundhara Group have encouraged development of various industrial and commercial units in the country. With its expertise in different fields and extensive human resources, Bashundhara has undertaken various projects. So, anyone can understand that it is one of the largest groups of industries in this country. Portfolio analysis Portfolio analysis is a systematic way to analyze the products and services that make up an association's business portfolio. All associations (except the simplest and the smallest) are involved in more than one business each of these is one of the association's strategic business units (SBUs). Each business consists of a portfolio of products and services.
  • 2.
    Portfolio of BashundharaGroup Enterprise 1- Real Estate East West Property Development (PVT) Ltd – The flagship company of Bashundhara Group was founded in 1987 to address the ever increasing housing needs of the citizens in Dhaka. Enterprise 2- Media & Entertainment It now owns Bangla dailies – “The Kaler Kantho” and “The Bangladesh Pratidin”, English newspaper the “Daily Sun” and bilingual online portal “banglanews24.com. Recently has launched FM radio “Radio Capital”. Enterprise 3- Steel Bashundhara Steel Complex Ltd- It was established in 1999 for producing various steel products used in irrigation, natural gas-based and certified by ISO-9001. Enterprise 4- Cement Meghna Cement Mills Ltd- The largest manufacturing unit of Bashundhara Group and has International Quality Standard certificate (ISO 9001:2008). The company markets its product under the registered trade mark "King Brand Cement". Bashundhara Cement- Sole brand of Bashundhara Industrial Complex Ltd (BICL) Enterprise 5- Paper Bashundhara Paper Mills Ltd- Unit 1 has so far been producing White Writing and Printing papers, Colored Printing papers, different types of colored wrappers, Off-set papers, Newsprint and handmade Cigarette (Bidi) papers of International quality and enjoying market share of above 30% of the country. Bashundhara Paper Mills Ltd- Unit 2- Formaly known as Bashundhara News Print & Duplex Board Industrious. It also produces writing and printing paper for local consumption and also for printing text book for NCTB. Bashundhara Paper Mills Ltd- Unit 3 formely known as Bashundhara Tissue Industries.The import-substitute industry has attained ISO 9002:1994 certification for its quality management system and ISO 14001:2004 certification for its environment management system. Brands- Bashundhara A4 paper, Bashundhara Khata, Bashundhara Paper, Bashundhara Hand gloves, Bashundhara Tissue, Monalisa Sanitary Napkin, Bashundara Baby Diaper. Enterprise 6- Energy Bashundhara LP Gas Limited- First private LPG Plant in Bangladesh. Product availability in 45 KG cylinder, 30 KG cylinder, 12 KG cylinder. Enterprise 7- Services International Convention City Bashundhara (ICCB) Bashundhara City- 12th largest shopping mall in the world and the biggest shopping mall in
  • 3.
    Bangladesh. Enterprise 8- Shippingand Logistics Bashundhara Steel and Engineering- BSEL shipyard has built 2 nos, 1800 MT dwt vessels and construct ocean going multipurpose and container vessels in near future. Bashundhara Dredging- Has eight major river transportation dredging facilities. Bashundhara Logistics Ltd - Founded in 2004, emphasizes problem solutions and customized approaches to the treatment of forward and backward linkage movements. Enterprise 9- Food and beverages Bashundhara Food & beverage Industries Ltd- Bashundhara Atta, Maida, Suji, Bashundhara Mustard Oil, 1. Selecting appropriate portfolio matrix Before starting any other analysis, we have decided to build portfolio matrix of Bashundhara Group that will represent its various SBUs. To develop the firm’s portfolio position. We know that to analyze the portfolio of an organization Boston Consulting Group (BCG) matrix or General Electrics (GE) matrix can be used. One of these matrix is selected based on the similarity of the SBUs. As the SBUs or enterprise of Bashundhara Group is very much diversified we have it useful to analyze both the matrices. 2. Assessing industry attractiveness: Attractiveness Criteria Wei ght Ratin g Weighted Score Size 0.09 4 0.36 Growth 0.15 5 0.75 Pricing 0.12 4 0.48 Market Diversity 0.03 2 0.06 Competitive Structure 0.05 3 0.15 Industry Profitability 0.12 4 0.48 Technical Role 0.04 3 0.12 Inflation Vulnerability 0.03 2 0.06 Cyclicality 0.05 3 0.15 Customers Financials 0.09 4 0.36 Energy impact 0.05 4 0.2 Social 0.04 3 0.12 Environmental 0.05 3 0.15
  • 4.
    Legal 0.04 20.08 Human 0.05 4 0.2 Total 1 Out of 5 3.72/5 Basundhara group is one of the renowned group of business in Bangladesh. They have wide product line and category and a strong customer base. When they enter into a new industry with new product category they assess the attractiveness of the industry on the basis of some potential criteria. There attractiveness measurement process is- 1. Selecting criteria: They select the criteria on the basis of the specific industry. These criteria are vary from industry to industry. 2. Weight: They give weight on different criteria on the basis of the specific criteria importance. All together the summation of all weight of the specific criteria is 1. 3. Rating: Basundhara Group rate all the criteria on the basis of 5 point scale, where point 5 is the highest valued point of importance and point 1 is the lowest valued of the importance. 4. Weighted Score: the multiplication of weight and rating of the specific criteria gives the weighted score of the criteria and the summation of all weighted score is the value of attractiveness of the industry. Evaluation: The weighted score of industry attractiveness of Basundhara 3.72 in the scale of 5.00. This is a moderate attractiveness score for the Group. They should focus on legal, market diversity and inflation vulnerability criteria to improve the score. 3. Competitive position assessment: In competitive positioning assessment stage Basundhara does the same task, which is done at the industry attractiveness assessment stage. At this stage they the select some key success factors which is considered at the situation of gaining success from the competitors. Then they set weight and rate to the specific factors and the accumulation of weighted score gives the result of competitive position of Basundhara Group. Key Success Factors Wei ght Rati ng Weighted Score Market Share 0.1 1 0.1 SBU growth rate 0.03 3 0.09 breadth of product line 0.03 3 0.09 sales distribution effectiveness 0.2 5 1 proprietary and key account advantages 0.01 1 0.01 price competitiveness 0.04 2 0.08 advertising and promotion effectiveness 0.06 2 0.12 facilities, location and newness 0.05 3 0.15 capacity and productivity 0.02 3 0.06 experience curve effects 0.05 4 0.2 raw material cost 0.03 2 0.06 value added 0.1 4 0.4 relative product quality 0.1 4 0.4 R & D advantages/ position 0.09 4 0.36 Cash throw – off 0.09 3 0.27 Caliber of personnel 0.04 3 0.12
  • 5.
    General Image 0.032 0.06 Total 1 3.57 Evaluation: The Competitive position score of Basundhara Group is 3.57 in the scale of 5.00. This score is also satisfactory enough but they should concentrate on Market Share, proprietary and key account advantages, price competitiveness, raw material cost to improve the score 4. Threats and opportunities analysis of bashundhara group: We know analyzing the opportunities and threats involves us to find the positive and negative forces that is beyond our control and that can define our plan as well. As we do not have any control over these elements we need to change our activities and planning to cope with the changing environment. When to analyze the threats and opportunities influencing factors can be divided into three distinctive group namely market factors, industry factors and supply factors. Let’s see how these the factors influence bashundhara group. Market factors Market factors are the factors that helps the company analyzing the customers and their surroundings. Like size of the market, nature of the demand, export opportunities etc. bashundhara group need to consider the following factors when to analyze the market. Size of the market Bashundhara is a diversified company having many SBUs that allows it to serve a handsome number of customers. When one SBU does not lead enough profit other will help to fill the gap. Overall growth rate Growth rate of bashundhara group is quiet satisfactorious and it helps the company to hold the leading position in many of the product market. It will be considered as an opportunity for the company. Though many of the products are in mature market but it introduces new products and SBUs on a regular basis to keep the growth rate ever increasing. Stage of product marker evolution As this is a group of companies that means it has a lot of SBUs that varies in stage of product of life cycle. Many product as the LP gas, cement, real state are in the maturity stage and some others are at the growth stage as media and entertainment, service and logistics etc. some others are at its introduction as food and beverage. Segment growth rates Segments of different products have different growth rate it is positively related with the stage of product life cycle. For emerging product like the food and beverage it is high but for the product that is in mature stage it is low. Buyer concentration Buyer concentration is positively related to the number of buyers for the product market. For FMCG product buyers’ concentration is not high but for industry products like cement, steel and other raw materials it is very high.it is a threat to the company. Price sensitivity and stability This is absolutely dependent on the number of substitute available for the product. When the
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    number of substituteproduct is available the price sensitivity is likely to be high but when there is very limited set of substitute is available price sensitivity is low. Detribution channel Bashundhara group uses different distribution channel for different product. Like for FMCG product it uses intensive distribution channel but for industry product it uses selective as well as for some cases exclusive distribution channels. It actually depends on the nature of the product. Demand cyclicity and seasonality Many of the product face the ups and downs of demand based on seasonality and cycle of demand. Like worm cloth cold protecting toiletries etc. bashundhara group has diversified product portfolio that helps the company keep the profit at expected level despite having this effect of the sales of the product. Industry factors These factors are related to the structure of the industry where the company does business. Industry factors are considered as the key influencing factors to decide whether an industry is attractive or unattractive. These factors are as follow- Product differentiation It signifies the level of product uniqueness that make the product of one company different from the other companies’ product. Many of the product of bashundhara group has this advantage as the type of product allow the company to customize the product according to the innovative ideas of the R&D department of the company as media and entertainment and the food and beverage. Sellers’ concentration If the number of seller is very limited in terms of buyer of a product the product is a sellers’ concentrated product. This is a situation where the company enjoys some benefits like setting high price, designing distribution channel to reduce cost etc. Some of the product of the company have this benefit as like LP gas. Barrier to entry When the new entrants face difficulties to enter into the industry there is barrier to entry to the industry. If the industry has high entry barrier the existing companies will enjoy some absolute advantages. Product like LP gas and cement have this issue. Vertical integration When the company has the opportunity to merge with the suppliers and distributors there is the issue of vertical integration. Bashundhara group can have this advantage for cement and FMCG products. Capital intensity and industry profitability When the business needs huge investment to run and the profitability is not promising the industry is not attractive. But if the ROI is enough investment is not an issue. Economies of scale and capacity utilization Economies of scale refers to the idea of reduction of average cost with the increase in volume of production. Product like cement, papers and food and beverage of bashundhara group enjoys this opportunities by using the full capacity. Change in product and process technology Technology may be both an opportunity and a threat depend on the impact in the industry.
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    Sometime new technologyin production process can lead to the cost minimization. Supply factors Factors that affect supply of raw materials. If the supply of raw materials is not available the company will suffer from the price increase and frequent shortage of raw matarials. Availability and balance of demand- supply Availability of raw material defines whether the supply of raw material will meet the demand of the product. Some of the industry products like cement and gas may face shortage of raw materials. Supplier’s concentration If the number of suppliers are very low the price of raw material will be high and the bargaining power will be at the suppliers end. Threats will high for the company and risk of price increase will intense. Import/ export barrier When the government has policies for import and export that limit the scope the industry will become unattractive. The company needs to evaluate this issue first before entering into an industry to remain save. 5. Critical Resource and skills of Bashundhara Group Bashundhara group is a prominent company it has some unique resources and skill that help the company to hold its competitive position. Strengths: It’s very famous group in our country. So it has more strong sides. So the strong sides of the Company are shown below…. 
Huge amount of capital: As a big & renowned company Bashundhara group has enormous amount of capital that helps to make expansion of its business unit. The management system is strong: The strong management system helps a company to make effective decision. Bashundhara Group has very strong management system that makes easier company decision making process. The employees are very qualified: The qualified employees are very integral part of a company’s stakeholder. Bashundhara group has 15000 qualified employees that makes easier company’s task and activities. 
The workers are practical. The workers are practitioner to make any types of activity. They maintain code of conducts & professionality in terms of their activity 
The products are acceptable and popular in our countries than other company’s product. Bashundhara group provides more value in its product than other company. Their brand value and market share also high than their competitors.
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    Huge amount ofproperties. Bashundhara group is one of the largest industrial conglomerates of Bangladesh. This is the stronger point to make expansion of its business. 5.1 SWOT Analysis of BAshundhara Group This is top qualitative evaluation of the key factors affection the company. To know how the company fairs will and how interesting an investment would be, our analysis follow the market on a daily basis and you could benefit from their valuable expertise to maximize you knowledge. Strengths •Huge amount of capital. •The management system is strong. •The employees are very qualified. •The workers are practical. •The products are acceptable and popular in our countries than other company’s product. •Huge amount of properties. Weaknesses •It has legal problems. •It has taxes problem. Opportunities • International and National market segment opportunities. •Expansion opportunities. Threats •competitors •Political instability •Bad weather
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    •Growth opportunities •Increaseraw material price Findings of SWOT analysis Through SWOT analysis, we try to find out strong and weak point of the company. Here we find out strong points more than weak point. The employees of the company are highly qualified. They enjoys work and do not want to avoid it. The employees of the company work hard to achieve the organizational goals through self-accept the responsibility without any hesitation. Its market position is good comparing to others. The working condition of the company is comfortable. 6. Plotting the matrix 6.1 Growth- Share Matrix (BCG Matrix) of Bashundhara Group Stars- Stars refer the leader position, farthest down on experience curve relative the competition. Bashundhara Paper, International Convention City Bashundhara, East- West Property Ltd are currently on the Stars position of Bashundhara Group. Cash Cows- Cash cows generate funds for other SBUs, maintain market share, maintain quality, increase usage rate. Bashundhara LP gas, Bashundhara paper, Bashundhara Tissue, The Bangladesh Protidin, banglanews24, Bashundhara Cement are on the Cash Cows stage. Question Marks- Low market share in the expanding industry, slow progress in the experience curve, need substantial cash to improve position. Bashundhara logistics, Bashundhara dredging, Bashundhara Steel& Engineering, King Brand Cement, Bashundhara Food & Beverages are currently surviving Question Marks arena. Dogs- Low market share in mature or declining industry, slow progress in experience curve, concentrated on niches or limited effort. Bashundhara dredging, Radio capital, The Daily Sun are on the declining stage or Dogs. High Relative market share low
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    Figure 1: Growth-Share Matrix (BCG Matrix) of Bashundhara Group
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    Market attractiveness 6.2 GE-Matrix of Bashundhara Group GE Matrix of Bashundhara Group has been described based on business unit strength and market attractiveness of current circumstances of business arena. High Medium Low High Invest heavily for growth - East-West Property Ltd - Bashundhara City - International Convention City Bashundhara - Bashundhara Paper Invest selectively & build - Bashundhara logistics - Bashundhara Food & beverages Develop for income - King Brand Cement Medi um Invest selectively & build - Bashundhara Tissue - The Bangladesh Develop selectively for income - Bashundhara Steel & Engineering Harvest or divest - Radio capital
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    Protidin - Banglanews24 LowDevelop selectively & build on strengths - Bashundhara cement Harvest - The Daily Sun Divest - Bashundhara dredging Business unit strength Figure 2: GE Matrix of Bashundhara Group Conclusion Bashundhara Group is one of the biggest corporations in our country. From above discussion we can say that the corporation portfolio is diversified and balanced. Company can reduce many of its risks by using the portfolio analysis of above scenario. Now-a-days it wants to enter in export business to use its unused capacity as well as to reduce risk.
  • 14.
    References Bashundhara Group, retrieved27 April 2015, from http://www.bashundharagroup.com GE Matrix, retrived 27 April 2015, from http://www.wikepedia.org/wiki/ge_matrix Growth-Share Matrix, retrieved 27 April 2015, from http:// www.wikepedia.org/wiki/growth- share_matrix 14