32

American International University-Bangladesh(AIUB)

Prepared For:

Munsura Rahmatullah

Faculty of International Business

Subject: Global Business Strategy

Report topic: Concord Real Estate.

Prepared By:

Name Id Signature

Imtiaz Tanvir Ahmed 08-10255~1

32

Md. Abdur Rahim 08-11410-2

A special debt of gratitude is due to our respected faculty Munsura Rahmatullah of

American International University-Bangladesh (AIUB) for the valuable guidance in the

preparation of this report. Her vigorous co-operation with the excellence of her

knowledge not only enlightens us but also inspired us to motivate ourselves in bigger

tasks. Then our appreciation goes to Mr. Muhibul Hasan, HR executive of Concord

group, for giving us different information relevant to our project.

We would like to thank Mr. Saiful Islam, senior executives, real estate division of

Concord group for his constant guidance and enthusiastic support to make this report.

Finally we wish to express our gratitude to employees of Concord Real State to provide

us their insightful thoughts and knowledge related to real estate business.

Without all above their effort and co-operations it would have been impossible for us to

complete the project successfully.

Executive Summary

32

Munsura Rahmatullah

Faculty and Course Coordinator

Global Business Strategy

School of Business

American International University-Bangladesh

Dhaka, Bangladesh-1212

Subject: Submission of Project on Concord Real State- Bangladesh.

Dear Madam,

We would like to submit our above-mentioned project for your kind perusal.

The project work has helped us to learn about the real life business scenario on various parts of business strategy such as Concord Real Estate management strategy in terms of planning span of control, delegation of authority, SWOT analysis of the company, customer relation management, and their social and ethical responsibilities.

But due to the company’s reluctance to disclose some of their strategy to outsiders, we had to apply our knowledge of basic strategic concepts. We humbly apologize for any limitations in our project.

We have tried our best to make the report as practical, accurate and relevant as possible in the light of the data available to us and offered extensive suggestions, as required per project to make the report more logical.

Letter of Transmittal

32

Yours sincerely,

Enayet Ullah

Md. Abdur Rahim

Imtiaz Tanvir Ahmed

Rahman Emtazur

Page

I) Executive summary…………………………………………………………. 1

II) Letter of Transmittal……………………………………………………….. 2

III) Main Report

Abstract …………………………………………………………………. 5

Introduction……………………………………………………………....4

a. Company at a glance…………………………………………………..7

b. Mission………………………………………………………………..8

c. Ash ridge mission model……………………………………………...9

d. SWOT analysis (internal & external)…………………………………10

e. PESTLE analysis……………………………………………………...12

f. Strategic options………………………………………………………15

g. Human Resource Management……………………………………….16

h. Compete in foreign market to new access…………………………….17

i. Decision making approach……………………………………………18

j. Business ethics………………………………………………………..19

k. Building block of competitive advantage…………………………….20

l. Choice of foreign entry……………………………………………….22

m. Benchmarks…………………………………………………………...23

Table of Contents

32

n. Marketing plan………………………………………………………..24

o. Conclusion……………………………………………………………26

IV) Bibliography…………………………………………………………………….27

V) Appendices……………………………………………………………………...28

Executive Summary

The report discusses the strategic function of Concord real state Limited, the real state

business environment, and the sample allocation project assigned to this researcher. The

main focus of the report is on the ashridge mission model, dynamic strategy, different

analysis and ethical issue and so on.

Concord is one of the oldest business houses in Bangladesh (founded in 1972) and one of

the biggest players in the construction and real estate industry. They have successfully

handed over more projects to satisfied clients than any other company, over 600 in

number and ranging widely in size and cost. They are the market leader in luxury

apartments and the first to produce and use environmentally safe and earthquake proof

building materials in Bangladesh, materials previously only seen in “wealthy nations.”

Many make claims to having the best safety and structural integrity; concord is proven by

independent tests carried out by local as well as foreign experts. From their vast

experience in construction - building bridges, theme parks etc. They employ the best

engineers and most up-to-date construction techniques in Bangladesh today. They have a

unique insight into structural engineering and can handle any project of any size or

difficulty. Apart from our real estate ventures, they have been entrusted to build many

landmark projects in the country, which has been provided in the report.

Introduction

32

The real state business environment in which Concord real state operates is a very

competitive one. However the competition is mainly concentrated among top ten real

state companies. In the report, the nature of the real state industry forces was discussed

by the help of Porter’s Five Forces model. It was shown that although there are several

entry barriers to the industry, intensity of rivalry and bargaining power of suppliers and

consumers poses a threat to Concord real state.

The National Monument at Savar

The Prime Minister's Secretariat

Hazrat Shahjalal International Airport

The low-rise block of the Sonargaon Pan Pacific Hotel

CIBA -GEIGY Pharmaceutical Plant at Tongi

rdsThe 200 bed hospital in Narayanganj

The VVIP Residence at Hare Road

The VVIP Rest House at Testa Barrage Complex

The 24 storey Janata Bank Head Office Building

The administrative building of Bangladesh T&T Board

The head offices of Titas Gas Transmission & Distribution Co. Ltd

At the end of the report some recommendations have been put forward for further

development.

32

This report gives an overview on the background of the mission, vision, ash ridge mission

model, dynamic strategy and different analysis of Concord real state company.

Origin of the Report

Munsura Rahmatullah faculty American International University-Bangladesh orally

assigned the students to prepare a formal business report on global business strategy. The

students had to prepare the report according the knowledge they earned through the

Global Business Strategy course. This report is prepared to comply with that instruction.

Purpose

The reports primary purpose is to comply with the partial requirement of global business

strategy. The secondary purpose is to provide information about Concord real state,

which is a pioneer real state company operating in Bangladesh.

Scope

The report is analytically in nature. The study covers the mission, vision, ashridge

mission model, dynamic strategy and different analysis of Concord real state Company .

Abstruct

32

The findings are strictly based on the information provided by the respective personnel

and website of Concord Real State Ltd.

Limitations

The authority of the Concord real state company thinks some of the information as

sensitive. They provided only a little information regarding the strategy. As maximum

information was collected through web site so that it was not possible to make research a

bit more.

Sources and Methodology

To collect the information secondary sources were mostly used.

Sources

This report is mainly based upon secondary sources. Since secondary sources were

consulted for an understanding of the real estate business and Concord Real Estate

company globally, such as publications and web pages.

Interpretation of Data and Presentation of Facts

The information, collected from the relevant personnel and on web site studies were first

recorded and then interpretation of the information was made. The significant findings

are presented systematically throughout the report.

32

Report Preview

The report is arranged logically to analyze the strategy of Concord Real Estate company.

The report tends to analyze the mission, vision, ash ridge model, dynamic strategy. The

report will give a precise idea about the strategy in the organization. A little analysis was

made at the end of the report.

Company at a Glance

Name: Concord real state company, Bangladesh

Location: HEADOFFICE: concord center 43, north commercial area Dhaka-1212,

Bangladesh.. Phone: 8814028, 8829871. Fax: 9887037,

Email:  concord@concordgroup.net Website: www.concordgroup.net

Parent Company: Concord is one of the oldest business houses in Bangladesh (founded

in 1972) and one of the biggest players in the construction and real estate industry. They

have successfully handed over more projects to satisfied clients than any other company,

over 600 in number and ranging widely in size and cost. They are the market leader in

luxury apartments and the first to produce and use environmentally safe and earthquake

proof building materials in Bangladesh, materials previously only seen in “wealthy

nations.” Many make claims to having the best safety and structural integrity; concord is

proven by independent tests carried out by local as well as foreign experts. From their

vast experience in construction - building bridges, airports, theme parks etc. They employ

the best engineers and most up-to-date construction techniques in Bangladesh today.

MAIN REPORT

32

They have a unique insight into structural engineering and can handle any project of any

size or difficulty. Apart from our real estate ventures, they have been entrusted to build

many landmark projects in the country.

Concord, one of the remarkable real estate companies, believe that everyone has the right

to high quality, affordable and safe housing, whatever their economic status. Concord

caters for all budgets and incomes. They specialize in luxury apartments and offices and

yet they have also designed and sold thousands of homes and office spaces to the mid-

market and lower income households.   For Concord, customer satisfaction is of utmost

importance. According to Concord, We can cater to your every whim, we can custom

design interiors and encourage a great deal of customer participation whether we are

developing your land or selling you an apartment or some office space. We can design

our apartments and buildings to suit your every need and desire. Our dedicated and

professional real estate team is always happy to help. Our projects are built to last,

through providing high quality living and working structures we aim to improve the

quality of life for the people of Bangladesh.

Mission

32

Ashridge Mission Model

Purpose

“Establishment of the relentless pursuit of quality”

Strategy

.Commitment to

quality

.Very experienced

.Latest and innovative

design

.Using most effective

technology

.Importing materials

from abroad

Value

.Safety and comfort of

the consumer

.Testing laboratory for

testing materials.

.Concerned about the

taste and opinion of consumer

.Social responsibility by

Behavior Standards

.Strictly follows code of ethics formula

.Transportation facility for the employees

.Incentives and bonus

32

Internal & External analysis

Internal & external analysis basically are the SWOT analysis of the company. SWOT

stands for Strengths, Weakness, Opportunities & Threats. Internal analysis is the

strengths & weakness. External analysis is the opportunity & threats.

SWOT analysis

Strength

the finest structural engineering and architecture combined with striking

aesthetics to create a living space

the market leader in luxury apartments in Bangladesh

Highest quality home that can pass down for generations to come.

Highest safety standards going above and beyond existing building codes.

earthquake proof and environment friendly building materials

Electrical safety measures

Backup generators in every building

SWOT analysis

32

Foreign fixtures and fittings for luxury buildings

Optimal design adhering to all building codes and regulations

Weakness

Most of the apartments costly that only for upper class people

Most of the projects are in centre of city & town area, as a result other low area

don’t covered.

Measuring the projects of Concord it is identify with localization strategy that

don’t match with maximum other real estate business that occur problem of

strategic alliance.

As Concord is a big international company, so their decision making process is

decentralized which can affect the business in host country.

Opportunities

Can find the options of other competitors

Purchasing more land for projects as land price is increasing

Changing strategy which can make best use of strength

Can pursue cost leadership strategy for catching market of developing country

Should increase more market for spreading risk & access to customer & natural

resource.

32

Threats

Lot of strong competitor in the market

Land price is increasing that can hampering the projects

Governments strict rules on real estate company

Object may not be successful because of market selection in developing country

Availability of high quality raw materials can be issue as Concord’s maximum

projects are in developing country like Bangladesh.

Political factors

Lack of political will/commitment to pursue

High rate of tax

Biasness of political parties

Corruption

Strike, Hartal etc.

Barriers in working independently

Doing business by following social responsibility

Lack of protection etc.

Economic factors

Bangladesh has increased gross domestic product to US$224.889 billion

PESTLE analysis

32

The economy has grown at the rate of 6-7% p.a. over the past few years

Limitation on foreign direct investment

The value of the rate of currency is decreasing day by day

sound financial control and regulations

Huge unemployment rate

Corruption

Biasness in making budget etc.

Socio-cultural factors

Demographics: completed more than 600 projects in Dhaka & outside of capital

& in abroad.

Lifestyle preferences: maximum luxurious for elite class

New consumerism: expand market for middle class in Bangladesh

Women in the workforce: Concord is equally employer, but in terms of real estate

sector it is men dominated.

Attitude about the QWL: Always try to extract optimum output from skilled

workforce.

Technological factors

Speed of technology transfer: The whole process in office & site computably

mechanized. Engineering, design and construction teams are using high-tech.

New discoveries & innovation: Always research for ascertain new projects

Effects of new technology in business: Gain access to core competency &

increase competitive advantage.

32

IT: Own web site & updated by different new projects in different new location.

PLC: As it is real estate sector, so investing for long term projects.

Legal factors:

Concord follows strict laws for establishing buildings.

Establishments are approved by standard Building codes of Bangladesh.

Provide proper salaries and facilities to its employees.

Properties meet the safety standards beyond the building laws of Bangladesh.

Properties are certified by ISO 900 & UKAS.

Environmental factors

Climate issues: Concord real estate properties are suitable for all kind of climate

situations possible in a country.

Environmental issues: They use environmentally safe and earthquake proof

building materials in Bangladesh. The materials are of best quality and harm free.

Human rights issues: Concord real estate gives emphasis on Human rights issues

by using safe workplace for employees and access to all needs. They also provide

flexible work hours and safety gears to all its workers.

Pollution: Concord projects are pollution free. This means they use the best

quality raw materials from abroad which are eco friendly.

Recycling issue: Concord real estate follow the 3 r’s method which are reduce,

reuse & recycle. The waste materials that are left after manufacturing is

sometimes reused and remaining are recycled by the industry itself in a proper

manner.

32

Hazard prevention: Concord follows proper method in construction avoiding

hazardous situations. They follow industry standards in applying strategies for

real estate.

According to our study & analysis on Concord group, we decided to place it under the

Think global Act local strategy. This means they employ a combination of global-

local strategy. As they have less foreign market but mainly the local real estate market,

they follow this strategy.

The reasons for this choice are:

Concord real estate applies the same basic competitive strategy theme in all its

foreign markets. They mainly follow the low cost and differentiation strategy.

According to customer tastes and preferences, Concord can sell suitable real

estate projects in foreign countries. They have the capability to customize their

offerings according to customer’s choice. By this they can offer various products

to customers.

They facilitate the local managers to adapt the global approach as they emphasis

on local preferences and competitive conditions by modernizing their products in

order to cope up with market situations.

Strategic Options

32

Division of task Function

Recruiting sources local

employee references

out sourcing

Staffing approach Polecentric approach

Training and development management

Performance appraisal

Compensation policy

Provide maximum experience

Provide variety of example

Label or identify important task features

Make sure general principle are understood

Reward trained behavior and ideas

Use analysis to develop the appraisal system

Check that the appraisal system is behavior oriented, not trait oriented

Evaluator follow some specific written rules written by Concord management

Compensation and benefits are depend on

knowledge of working

Human Resource Management

32

Expatriate

taxation laws

cost of living standard

employee experience

Concord hire some expatriate for top level work

From our analyzing we put Concord real estate under international competition. It

operates in only three foreign countries Singapore, USA & Australia. So, concord does

not emphasis on competition in foreign market, it only emphasis is on establishing strong

position in the local real estate market. In the same time it has a modest ambition to

expand further into international markets.

Following are some of the strategies they follow while entering into international

markets:

Gain access to new customers:

As we know Concord has a good customer base in international markets they strive to be

the very best, using the best quality construction materials, the latest and most innovative

designs and hand picking the supplies and materials from abroad, paying attention to

every detail. By this they can gain access to new customers.

Obtain access to valuable natural resources:

Natural resources are essential materials for establishing a company. Concord as a real

estate company obtains access to natural resources like land, climate& proper site

through applying location economies.

Compete in foreign market to new access

32

Achieve lower cost and enhance competitiveness:

They achieve lower cost by achieving lower cost agents & by doing insurance in lower

interest. International market is all about competition. So Concord enhances its

competitiveness through employing the best engineers and most up-to-date construction

techniques available today in real estate industry.

Capitalize on core competencies :

Core competencies are a firm’s main driving force. Core competencies enable an

organization to excel at the various activities it does to provide value. Concord has

capitalized on core competencies by capturing customer satisfaction from its

establishment. Service, customers, location are its basic core competencies.

Spread business risk across wider market base:

Concord has a wider market base in home country as well as foreign country. So they

have the option to spread and share their business risk across new markets through

expansion.

The real estate of Concord group is a bulky company. They run lot of operations in local

market & also in foreign market. So the key issue like decision making for every single

Decision making approach

32

small operation is not easy matter for the company. Their most of the decision is

centralized in local project in Bangladesh. But for their foreign projects they follow

decentralized decision approach.

Concord Real State Ltd. follows a business ethics, which consists of acceptable & world-

class business conduct. Concord Real State Ltd. also believes that its goal is not only to

earn profit but also considering the social implication of their activities. To contribute

something good to the society & to do something good for the country is the main

objective of this company. The main ethics that Concord Real State Ltd. follows are

mentioned below-

Not to violate any human rights as well as to support & promote the protection of

human rights.

Ensuring community benefits and equality of opportunities

Ensuring the health & safety measures taken for the employee of the company.

Maintaining the consistency with universally accepted labor standards including

those related to exploitation of child labor.

To make sure that it's activities are consistent with sound environmental

management & conservation practices.

Not to make or get involved in any sort of illegal & improper payments, deals or

bribes & refrain from participating in any corrupt business practices.

Business Ethics

32

Comply with all application laws & conduct business in such a manner where

there transparency.

Efficiency:-

Building block of competitive advantage

32

The ratio of output and input.

We know, Efficiency = Output / inputHere, Efficiency of concord = Quality, Customer

responsiveness etc. / Technology, Effort etc. We also know that, productivity leads

togreater efficiency and lower costs.

Capital productivity:

Concord is one of the famous and ancient real estate conglomerates in

Bangladesh. Concord is growing faster day by day.And the popularity is incresing

rapidly. So the capital is also increasing.The capital of Concord is increasing by USD

28000 per year.

Employee productivity:

With the growth of capital, the employee rate of Concord has also

increased. Concord recruits skilled,merit employee for their company. Which has reduced

unemployeement rate of the country.

Quality:-

Concord maintains quality of their product very strictly. They have their

own testing center to examine the condition of raw materials. At the same time they do

not use any polluted or recycled bricks or concrete. Concord has latest technology, skilled

labor, and experienced architect.

Innovation:-

Product innovation:

32

Concord allows their consumers to choose and select the interior

according to their likeness. And they also give discount to their consumers which create

value for their customer.

Process innovation:

Concord uses latest technology and prohibits using resources from

outside. Concord uses resources which is available internally. This strategy helped them a

lot to reduce cost and make more profit.

Responsiveness to customers:-

Concord is highly concerned about the quality and customers choice.

They give their customers full independence to choose interior of the flat. By which they

create value to customers. Concord has become one of the most popular real estate

conglomerates in Bangladesh because of their quality and performance. So

responsiveness to customer is pretty high.

For entering into a foreign market it is very essential for every company to determine the best mode or vehicle. The optimum option depends on the company’s strategy. Though the Concord real estate ltd enter into the foreign market but their market size is very

Choice of foreign entry

32

limited. For entering into foreign market Concord real estate have to analyze some common factors. These are-

Decisions

1. Barriers to enter : Imbalance of benefits, costs, risks etc

2. Timing of entry : If Concord take first move, they can preempt & build share. In contrast they also have to bear pioneering cost.

3. Scale of entry : As Concord is a company of third world country like Bangladesh, their strategic commitment can be high if they enter vigorously into foreign market. In contrast they will be small benefited if they capture smaller portion of the market.

Mode

They can enter in to market by both licensed & wholly owned proprietorship. In foreign markets their competitions products are more qualified than them. So they have to differentiate their products to earn greater returns where competitors lack comparable products. For that they have to have two distinctive competencies. These are-

1. Technological know- how

2. Management know- how

Organizational cost & performance measure:

Most of the buildings & its interior decoration of Concord real estate make for elite class or upper class people of the country & it’s very pricey. As most of the local people are middle class so they lose the larger share of the market.

Benchmarks

32

Competitor’s cost & performance measure:

Some of other competitor performing well in the market than Concord real estate. Because they market their products at cheap price than Concord & easily enter into the customers. Though they choose low cost or low provide location but they are able to capture larger share of the market. For illustration, Asian city, Rupayan, Modhumati model town etc.

Levels of Marketing Plan (Concord Real Estate):

Concord being a market leader in real estate of our country follows a Tactical marketing

Plan. This means they prefer competitive marketing through the following plans:

Product features:

Its products contain the features of the best quality in its class. The real estate

projects are much customized according to modern standards. So they can use

product specification as their marketing tool.

Promotion:

Concord uses sales promotion during various real estate fairs in the country in

order to increase its marketing success. They also give offers with their projects as

part of promotion.

Merchandising:

Marketing plan

32

Merchandising is a very popular marketing procedure. Concord is also not

unfamiliar with merchandising. They buy, develop and sell properties to their

customers or clients all over the country.

Pricing:

They price their products according to quality and preferences of their customers.

So, pricing is an important part of their marketing plan. Pricing also helps in

categorizing their products.

Sales channels:

Concord real estate has a wide range of sales channels. Their sales channels are

the real estate offices around the city. They sell via intermediaries to their

customers by various channels like real estate agents of their own.

Service:

Versatility is an important element in any company's growth. Within the Concord

Group this is visible in their numerous subsidiary companies that provide a wide

variety of products and services that complement core business.    For the last 35

years they have undertaken some of the most prestigious and technically

challenging projects and helped shape the Dhaka skyline. Many of these projects

were commissioned by the government and others by large corporations.

32

According to the strategic thinking views points an excellent organization has the

following characteristics:

Is oriented toward action

Learned about the needs of their customers.

Sustaining the competitive interaction

Working considering cost as well as value

Driven by a company philosophy often based on the values of their leaders

Focused on competitors strength and weakness

Has a simple organization structure with innovation

Is must be imaginative, practical and relevant.

According to all these criteria concord real state is an excellent organization in our point

of view. By analyzing the information of this report we can see that it has competitive

Conclusion: Concord real state, an Excellent Organization

32

business strategy which helps the organization working internationally. Concord real

state is knows about the need of its customers and its employees as well. So they can

retain both their customers and employees. Company policy, values and strategy are

unique in nature. Concord real state has low work force in comparison of other

companies of their size. All the criteria made concord real state an excellent organization.

1. Mr. Muhibul Hasan,(Human Resource Executive, Concord Group Ltd) Gulshan (head office), Dhaka, (Personnel and Admin. Interview. 2007)

2. www.concordgroup.net

3 .www. .concord group - wikipedia, the free encyclopedia.htm .com

Bibliography

32

Appendices

32

32

32

32