Free Essay

Analysis of Lucrative Sector in Bangladesh

In: Business and Management

Submitted By zzanyomar
Words 1796
Pages 8
Assignment 3

Fin 444.2
Instructor: Mirza M. Ferdous (MzF)

Prepared by Name | ID | Tarek Al Zobaer | 1010052030 | Tamanna Badhan | 1020716020 | Sabreen Sayeed Haider | 1130637030 | Omar Farukh | 1210010030 |

Date of Submission : 05.05.2015

Overview of Singer Bangladesh
Singer Asia is a holding company with operating subsidiaries in the South Asian countries of Sri Lanka, Bangladesh, Pakistan, and India. The subsidiaries in Sri Lanka, Bangladesh and Pakistan are retail businesses engaged in the distribution of a wide variety of household consumer durable products (HCDs), with consumer credit and other financial services available to qualified customers. In each of these markets, Singer Asia is the leading retailer of durable products for the home.

Singer Bangladesh History
The presence of Singer in Bangladesh dates back to the British colonial era when the country was a part of the Indian sub continent. The first operation of Singer began in the year 1905. Later, in 1920, two shops were set up in Dhaka and Chittagong. Operation of Singer began in 1905. Later, in 1920, two shops were set up in Dhaka and Chittagong. After the partition in 1947, Singer in East Pakistan operated as a branch of Singer Pakistan. When Bangladesh was liberated in 1971, East Pakistan branch office was elevated to a country Office.
Firstly, Singer was synonymous with sewing machine. Later in 1985, its management diversified its products into different ranges including televisions, fans, washing machines, irons, microwave ovens, rice cookers, audio products, air conditioners, motorcycles, instant power supply, DVD players, room heaters, kitchen appliances, netbook, laptop, desktop computers and generators. A change in the investment policy in 1979 created new business opportunities and Singer registered as an operating company, with 80% of the share held by Singer Sewing Machine Company (SSMC), USA, and 20% by local shareholders. In 1983 the company was listed with Dhaka Stock Exchange (DSE) and offered 20% of its total capitalization- 2,565 ordinary shares of Taka 100 each. In 2001, it was also listed with the Chittagong Stock Exchange (CSE).

Management practices
Directors are responsible for instituting a system of internal controls to ensure the effective implementation of all policies and decisions of the Board. The Board ensures that the Directors maintain full and effective control of all significant strategic, financial, organizational and compliance issues. The Directors have delegated to Management Committee the responsibility of establishing and implementing a system of internal control appropriate to the business environment in which it operates.

The Company's internal controls are highlighted as follows: * The definition of the organizational structure and appropriate delegation authorities to functional management. * Procedure for the review and authorization of capital expenditures. * Strategic planning and the related annual planning and quarterly forecasting process. * Accounting and financial reporting policies to ensure the consistency, integrity and accuracy of the Company's accounting records. * Reporting and review of financial results and other operating statistics as well as the Company's published half yearly and annual financial statements which are based on a standard reporting system.

The Company has an internal audit department consisting of twelve members and headed by the Head of Internal Audit. The internal control system is maintained and reviewed by an internal audit function that operates on a global basis and reports to the Management and the Audit Committee. The work of the internal auditors is focused on the areas of risk to the Company which is determined on the basis of a risk management approach to audit. The Company has several levels of personnel enforcing these internal controls, while the Internal Audit Department reviews the effectiveness of such controls. Company operations are also subject to be reviewed by the Corporate Internal Audit Division of the parent Company of Singer Bangladesh Limited.

New Role of Singer Bangladesh – Retailer
Gradual transformation of Singer Shops into 'Singer Mega' and 'Singer Plus' started back in 2006 as part of its multi-branding strategy. The main focus of this strategy is to make available varied world famous brands under the same product category for providing customers a variety of choice under the same roof. As such Singer Mega and Singer Plus Shops now offer world famous brands like BEKO, Grundig, Apple, Samsung, Siemens, Skyworth, Videocon, Preethi, Singtech, Dell, Toshiba, Prestige, Lifestraw and many more alongside with Singer.

Manufacturing
Singer set up its first manufacturing facility for sewing machines in 1980 at Chittagong. 1993 saw the most successful diversification program of the company when its product range was enhanced with the establishment of a new Audio Video Plant at a rented premise at Savar near Dhaka. Initially, production was limited to Color Televisions but in 1994, Video Cassette Players were added to the product range. From early 1995, production of the Black and White TV was also started at the same plant. The company also initiated assembling of Washing Machines in 1996 at another rented premise. The company established Singer Electronics Complex on its own land at Savar, at the outskirt of Dhaka. The complex assembled Radio Cassette Recorder, Washing Machine, Sewing Machine at different times. SMC started assembling state of the art LED televisions from 2011 maintaining the global standard of quality. It is also assembling CRT Televisions. In 2013 Singer's manufacturing facilities went for further expansion by commencement of Singer Furniture manufacturing at the Complex. Besides, Singer started manufacturing Air Conditioners at the same premise in 2014.

Dealer Channel
Despite offering the largest retail chain for Consumer Electronics and Home Appliance industry in the country, around 300 dealers are located across the country to make Consumer Electronics & Home Appliances of Singer and other brands, Singer Cables and Sewing Machines available to more consumers.

Investor Relations
Singer, the company famous for hire purchase schemes and sewing machines, is the largest retailer in Bangladesh. As the country’s largest retail chain, Singer manufactures and markets consumer electronic, home appliances, motor cycle, electric cables and many more. Singer Bangladesh markets products through two distinct channels - its own retail chain shops – Singer Plus and the Dealer Channel. It has presence at the every corner of the country.

Analysis of the Singer’s financing methods
Singer Bangladesh Limited has earned Tk 5,461.23 million in revenue in the year 2011, recording 13.1 per cent growth compared to the previous year. Despite different challenges including global economic crisis and currency devaluation that impacted the economy in 2011, Singer Bangladesh became able to achieve its revenue targets,' Mahbub Jamil, Chairman of the company said. The sustainable and profitable growth of Singer Bangladesh will continue in the future, Mr Jamil hoped at its annual report-2011. "Our key strengths, being our singer brand, our nationwide distribution network, our ability to offer hire purchase and most importantly our Singer staff, will continue to enable us to produce strong results going forward," he added. "As a leading corporate house and a listed company, Singer is trying to establish the best investor relations practices through effective communication with its investors and other shareholders," Mr Jamil said. AM Hamim Rahmatullah, Managing Director and CEO of Singer Bangladesh, said though the year 2011 was undoubtedly a difficult year for the Bangladesh economy, 2011 saw a growth in almost all of major product lines of Singer. Singer Bangladesh now has Authorised capital of 1000,000,000 ordinary shares of Tk 10 each
Of which Issued, Subscribed and Paid Up capital is 61,355,593 ordinary shares of Tk 10 each. And the number of Shareholders as on December 31, 2014 was 14,582.

* In the year 2011, sales turnover of the listed company recorded Tk 5,461 million, which is 13.1 per cent higher than that of previous year. * The company's operating profit increased to Tk 503 million in 2011, registering 1 per cent growth, from Tk 498 million in 2010, according to the annual report 2011. * Total reserves of the company stood at Tk 277.82 million in 2011 while its paid up capital is Tk 392.68 million as of December 31, 2011, which was Tk 224.39 million in 2010. * As of December 31, 2011 Earning Per Share of the company is Tk 10.18. * During the year 2011, there was an up and down movement in share price of the company. The highest share value was Tk 840 and the lowest was Tk 209. * The Board of Director of Singer Bangladesh recommended 30 per cent cash dividend (Tk 3 per share of Tk 10) for the year 2011 based on the performance of the company. * In refrigerators, a 28 per cent growth was registered, the panel television growth was 149 per cent and sewing machine sales grew by 57 per cent. * The company's computer business comprising Singtech and Samsung brands saw a remarkable growth of 63 per cent in 2011 compared to the previous year. * A strong growth-- 153 per cent and 27 per cent-- was also recorded in the washing machine and microwave products versus the previous year.

CSR Initiatives
From its sense of moral obligation to the society, the company undertook different projects under the Corporate Social Responsibility (CSR). Singer's CSR activities in 2011 include Kingbodonti or Bravery Award, mother and child care awareness programme and training for the destitute women. Credit Rating Company (ECRL) rated Singer Bangladesh Limited AA+ in the long term and ECRL-1 in the short term with a stable outlook.
Singer Bangladesh obtained "D & B Corporate Award 2010" for its business performance in 2010 while the company's annual report 2010 won the Merit award from the ICAB National Awards in the manufacturing sector for best published accounts and reports.

Views for the future
Managing Director of Singer Bangladesh Mr Rahmatullah, while sharing his views regarding the future prospects of the company, said, "The Company continues to have its strongest distribution network for consumer durables in Bangladesh. This was further strengthened with opening of 30 new shops in 2011. "The whole sale market was also strengthened with many new dealers joining hands with Singer Bangladesh for the first time, he noted. “The company has the best after sales offering and will continue to strengthen it," the managing director said. Singer Bangladesh lays stress and focused on efficiency of the employees for improving the company's performance, thereby focusing on training their employees both on and off the job.

Singer Bangladesh has the following objectives for its future growth : * To be the market leader in our product range and market segment. * To provide consumers with the best services and shopping experience. * To provide consumers with products of latest technology. * To develop our employees to achieve their real potential. * To provide our shareholders with steady asset growth and return on investment above our industry norm. * To grow our revenue and profits at a rate above the industry norm.

References 1. Singer Bangladesh Annual Report, 2013 2. http://www.singerbd.com/

Similar Documents

Premium Essay

Offering Higher Post to the Fresh Graduates Towards Employee Satisfaction: an Empirical Study on Private Commercial Banks of Bangladesh

...1.0 INTRODUCTION The commercial banking system dominates Bangladesh's financial sector. Bangladesh Bank is the Central Bank of Bangladesh and the chief regulatory authority in the sector. There are a total of 51 banks in Bangladesh, and this banking system is composed of four state-owned commercial banks, five specialized development banks, thirty eight private commercial Banks and nine foreign commercial banks. Hence we can easily say that the private commercial banks (PCBs) comprise for the largest portion of the banking sector. The banking sector has attracted a lot of fresh graduates for a very long time because of their work environment and other facilities that they provide. Moreover, the work environment and culture of the private commercial banks are such that the employees are motivated to work and prove themselves to their employers. One such approach made by PCBs was to offer a higher post to the young, newly hired graduates as they believed that this would help to increase employee satisfaction. This strategy has by many means been successful as well as a little unsuccessful for the banks. The overall study shows that simply hiring employees in higher posts cannot increase their overall job satisfaction; rather, a lot of other factors also need to be considered in order to ensure the satisfaction of the employees. 2.0 OBJECTIVE The main objective of this paper is to show how much effective the attempt was made by the owners of the PCBs to increase......

Words: 4155 - Pages: 17

Premium Essay

Foreign Investment Trends in Bangladesh

...in Bangladesh: Board of Investment of Bangladesh is the principal investment promotion agency engaged mainly in investment promotion, facilitation, and policy advocacy support for the policy makers. The Board of Investment Act 1989 (Act XII of 1989) has entrusted the Board of Investment with responsibility for inter alia "collection, compilation, analysis and dissemination of all kinds of industrial data and establishment of data bank for that purpose"- BOI has endeavored in to portray a brief on Foreign Investment registered from 1977 to 2010 for Joint venture investment and from 1990-2010 for the 100% foreign investment projects. Country wise foreign and joint venture investment during 2009-2010* Country | No. of Projects | Proposed Investment (US$ m) | Saudi Arabia | 3 | 478,652.17 | Australia | 4 | 2,036.23 | USA | 5 | 2,990.33 | Finland | 2 | 3,023.89 | India | 9 | 8,451.53 | South Korea | 12 | 33,768.91 | Malaysia | 3 | 3,056.52 | Netherlands | 5 | 8,544.76 | China | 12 | 21,000.36 | United Kingdom | 5 | 3,507.76 | Pakistan | 2 | 990.91 | Japan | 8 | 2,624.85 | Denmark | 1 | 1,217.39 | Sri Lanka | 2 | 646.23 | Canada | 2 | 1,017.23 | Taiwan | 1 | 502.97 | Singapore | 4 | 1,929.62 | Turkey | 1 | 150.94 | Greece | 1 | 156.81 | Italy | 2 | 1,039.95 | Hong Kong | 5 | 14,805.94 | Total | 89 | 590,114.91 | As a developing country, Bangladesh needs FDI for its ongoing development process. Since independence, Bangladesh is......

Words: 1763 - Pages: 8

Premium Essay

Prospect of Ict Industry in Bangladesh

...PROSPECT OF ICT INDUSTRY IN BANGLADESH Ariful Islam ID: 11164063 Section: 1 Subject Code: BUS 502 Subject Name: Managerial Communication Summer 2011 PROSPECT OF ICT INDUSTRY IN BANGLADESH Abstract ICT is one of the most talked about but unexploited industries in Bangladesh. Last two decades have seen lot of initiatives, both in public and private sector, to stimulate growth in this sector. Although some success has been achieved, Bangladesh lags far behind other South Asian countries like India and Sri-Lanka in terms of employment and revenue generation in the ICT industry. Against such background, this paper takes a close look at the ICT industry of Bangladesh. Starting from the formative years of the ICT industry to different measures taken by the government to support this sector, the paper analyzes the prospects of the ICT industry in Bangladesh. Introduction ICT industry in Bangladesh is relatively new in comparison to other business sectors. However, the unlimited potential of the ICT sector has commended inquisitive interests from all concerned. The impact of global hype of the ICT sector is clearly visible in Bangladesh as well. In the recent years, the local ICT sector has grown enviably. With over 3,000 local enterprises operating in hardware, software and ISP segments, the size of Bangladesh ICT industry at present stands at USD 380 million. With the advantage of earlier initiation, the hardware segment dominates the market share (65......

Words: 2193 - Pages: 9

Premium Essay

Fdi Proposal

...PROJECT PROPOSAL On Foreign Direct Investment (FDI) PROBLEMS AND PROSPECTS OF FOREIGN DIRECT INVESTMENTS IN BANGLADESH Prepared For Md. Sujahangir Kobir Sarkar Lecturer Department of Agricultural Economics & Rural Development Faculty of Business Administration and Management Patuakhali Science and Technology University Prepared By Ashfaqur Rahman Level - II , Semester - II Roll : 039 , Reg. : 01567 Session : 2007-2008 Faculty of Business Administration & Management PATUAKHALI SCIENCE & TECHNNOLOGY UNIVERSITY Date of Submission: April 30, 2010 TABLE OF CONTENTS 1. Background Information of the Project. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2. Statement of Project Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4 3. Objectives of the Project. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4. Justification of the Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5. Benefits of the Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .....5 6. Methodology of the Project. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 7. Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...

Words: 1316 - Pages: 6

Premium Essay

Customer Satisfaction Level of Telecommunication Sector in Bangladesh.

...1.INTRODUCTION History of the telecommunication Industry in Bangladesh: In a highly populated country like Bangladesh, telecommunication can play a vital role to boost the economy and social level of people. The introduction of cellular phones has dramatically changed the lives of businesses and individuals. As there is a growing trend of workers turning from farming to other occupations, the need for mobiles is increasing among the thousands of impoverished villages. The overall efficiency of other business has increased as an aftermath of the government's decision of deregulating the telecommunications sector, which until the late 1980s had been a state monopoly. Privatization of the telecommunications sector began in 1989, when Sheba and BRTA were awarded 25-year licenses to install and operate fixed-wire lines and wireless services in rural areas. The same year, Pacific Telecom Bangladesh got the government's permission to launch the country's first cellular phone and paging service sold under brand name CityCell in collaboration with a Hong Kong-based company. The company targeted only the higher class of the society. During that time price of mobile was above Tk 50,000/=. Naturally, the growth of the industry was too slow. CityCell had a virtual monopoly until 1996, when the government gave licenses to three more companies to operate cell phones in Bangladesh. So, the government decided to bring more companies in the market and break the monopoly.After careful...

Words: 6398 - Pages: 26

Premium Essay

Financial Study on Service Appartment

...Capital Investment Analysis [FIDELITY SERVICE APARTMENT] Course name: Financial Management Dr. Jahangir Alam Professor IBA, University of Dhaka Group 13 IBA, BBA 20th, Section A Date of submission: 23rd June 2013, Sunday 1 Capital Investment Analysis [FIDELITY SERVICE APARTMENT] NAMES ID NUMBER Munkasir Masud Muhammad Saiyedul Muttaqin Bijoya Chakraborty Kashfia Tabassum Ahmed Imtiaz Farhan Bin Habib ZR-06 ZR-11 RH-22 RH-42 ZR-61 2 Capital Investment Analysis [FIDELITY SERVICE APARTMENT] 23rd June 2013 Dr. Jahangir Alam Professor Institute of Business Administration University of Dhaka Subject: Letter of Transmittal Sir We are pleased to submit the Capital investment analysis on Fidelity service apartment’s ltd. We have completed the report through putting the theories and techniques learnt throughout the Financial Management course. This report contains analysis of the current market situation as well as possible the evaluation of the feasibility of the project. We have recommended some marketing and financial scopes which might prove imperative. We have tried our very best to tailor the report according to your guidelines. Therefore, we request you to accept our report. We believe that you will find it in order. We are eagerly expecting your feedback on the overall report. Thank you. Yours respectfully Group 13 IBA, BBA 20th, Section- A __________________________ Munkasir Masud, ZR- 06 __________________________ Bijoya......

Words: 15083 - Pages: 61

Premium Essay

Assignment on Grameenphone vs Banglalink

...university | | | | | |Sourov bhattacharjee | |[Let' Many people find telecommunication industry as the most lucrative industry of the world. In fact, telecommunication sector is| |one of the emerging sectors in Bangladesh. Among the 162.22 million people of Bangladesh (WBG, 2011), around 46% of the people are | |using mobile phone. "Although nearly half of the country's population is still below the poverty line, the country has been one of | |the world's fastest growing cellular markets". (Paul, 2009) This definitely clarifies that cell phone has become an integral part | |of Bangladeshi people which brings immense opportunities to the country's telecom service providers.Banglalink is standing far away| |from Grameenphone in terms of subscriber base. The key reasons behind this are - Grameenphone's greater focus on quality, the | |network coverage, strong equity structure and superior resource allocation. These unique competencies of Grameenphone have | |established a stronger brand image for the company while Banglalink is yet to achieve these crucial qualities and difficult to | |achieve them instantly.The Industry Analysis section of this study shows that, both companies are yet to exploit the potentials | |that include – banking service solution, order-purchase platform, remittance services & many more and Banglalink made the......

Words: 8650 - Pages: 35

Premium Essay

Bank

...through an internship program of 3 months duration. As practical orientation is an integral part of BBA degree requirement, I was sent to IFIC bank, Lalmatia Brunch to take real life exposure of the activities of financial institution from 01, June 2014. 1.2 Background of the Study: Modern banks play an important part in promoting economic development of a country. Banks provide necessary funds for executing various programs underway in the process of economic development. Economy of Bangladesh is in the group of world’s most underdeveloped economies. One of the reasons may be its underdeveloped banking system. Government as well as different international organizations have also identified that underdeveloped banking system causes some obstacles to the process of economic development. So they have highly recommended for reforming financial sector. Since 1990, Bangladesh Government has taken a lot of financial sector reform measurements for making financial sector as well as banking sector more transparent, and formulation and implementations of these reform activities has also been participated by different international organization like World Bank, IMF etc. I was placed in IFIC Bank Limited, for 12 weeks long Internship Program to acquire practical knowledge. This is an orientation to the entire banking procedures of IFIC Bank Limited and finally a study on a particular area. 1.3: Objective of the Study: The primary objective of this report is to comply with the......

Words: 5565 - Pages: 23

Premium Essay

Nbfi

...1. Non Banking Financial Institutions in Bangladesh: Initially, NBFIs were incorporated in Bangladesh under the Companies Act, 1913 and were regulated by the provision relating to Non-Banking Institutions as contained in Chapter V of the Bangladesh Bank Order, 1972. But this regulatory framework was not adequate and NBFIs had the scope of carrying out their business in the line of banking. Later, Bangladesh Bank promulgated an order titled ‘Non Banking Financial Institutions Order, 1989’ to promote better regulation and also to remove the ambiguity relating to the permissible areas of operation of NBFIs. But the order did not cover the whole range of NBFI activities. It also did not mention anything about the statutory liquidity requirement to be maintained with the central bank. To remove the regulatory deficiency and also to define a wide range of activities to be covered by NBFIs, a new act titled ‘Financial Institution Act, 1993’ was enacted in 1993 (Barai et al. 1999). Industrial Promotion and Development Company (IPDC) was the first private sector NBFI in Bangladesh, which started its operation in 1981. Since then the number has been increasing and in December 2006 it reached 29. Of these, one is government owned, 15 are local (private) and the other 13 are established under joint venture with foreign participation. 1.1 Recent Development & Activities of NBFIs The major business of most NBFIs in Bangladesh is leasing, though some are also diversifying into......

Words: 4460 - Pages: 18

Premium Essay

Telecommunication Sector of Bangladesh: a Perspective from Porter's Five Forces Model.

...updated time to time because of new innovation & demand. The power of telephony is forging a new enterprise culture, from banking to agriculture to health care. The opportunities that lie in the telecom industry seem endless & lucrative due to the continuous innovation & growing demand for mobile telephony. Mobile phone has become an indispensable part of Bangladesh's everyday-life and has made a "safe haven" in one of our pockets much like our wallet that we never want to leave at home while we head for our work! Thanks to the telecom-revolution and its relentless evolution that together have made it possible even in developing countries like Bangladesh. This is the dominant device that we now express ourselves through, get our work done and share our pains and pleasures with. In this paper we have analyzed the mobile telecom industry of Bangladesh on the basis of Porter’s five forces model. Here we also show the historical background of Bangladeshi telecommunication sector, the key points of bargaining of suppliers & customers, impact of internet on telecommunication sector, impact of internet on annual growth of the mobile operators, problems of telecommunication sector in Bangladesh, future prospects of telecommunication sector & so on. Here we have also analyzed the competitive strategy of the mobile operators. Very much like the nature of the technology, the telecom industry in our country is also changing very rapidly. This is now in its......

Words: 9332 - Pages: 38

Free Essay

Mis in Agro-Business

...MIS105SECTION: 2 | PREPARED FOR:ASHIK IMRAN KHAN | PREPARED BY-NAME: EMRAN SAYEEDID: 1130833030NAME: CHOWDHURY SAIMA TABASSUMID: 1210194020NAME: MONOLOVA SAMARUKHID: 1210368630NAME: SHOAIB AHMEDID: 1210009030NAME: NISHAT TASNEM EASHAID: 1211168020 | * ABSTRACT- 4 * CONCEPT OF MIS- 4 * FIELD OF MIS DEALS WITH- 4 * AGRICULTURE- 6 * AGRO-SOCIETY AROUD THE GLOBE- 7 * PERSPECTIVE FROM BANGLADESH- 8 * MIS IN AGRICULTURE- 10 * MANAGEMENT IFORMATION SYSTEM IN ACTION- 11 * AGRICULTURE, MIS AND BANGLADESH- 22 * AGRO-SOCIETY OFBANGLADESH BELONGS TO- 23 * CHALLENGES FACED BY AGRO-INDUSTRY OF BANGLADESH- 24 * POSSIBILITIES FROM AGRO-INDUSTRY OF BANGLADESH- 25 * THE GOALS THAT BANGLADESH GOVERNMENT SHOULD ACHIEVE TO DEVELOP ITS ECONOMY AND AGRO-INDUSTRY- 25 * AND WITH MIS- 25 * USING MIS IN AGRO-INDUSTRY MARKETING- 26 * LASTLY- 27 INDEX ACKNOWLEDGEMENT NAME: EMRAN SAYEED NAME: CHOWDHURY SAIMA TABASSUM NAME: MONOLOVA SAMARUKH NAME: SHOAIB AHMED NAME: NISHAT TASNEM EASHA ABSTRACT We are reporting on Management Information Systems practices in agricultural......

Words: 4985 - Pages: 20

Premium Essay

Analysis on the Growth of Balance of Payment and Sectoral Growth in Bangladesh

...Introduction Bangladesh characterised by high population density, low resource base, recurrent natural disasters and persistent socio-cultural instability has come a long way since its independence in 1971. The country has performed well especially in recent years, showing that a country can achieve significan human and social development at relatively low levels of income along with creating strong fundamentals and future growth. The integration of developing and least developed countries with the global economy increased sharply in the 1990s with change in their economic policies and lowering of barriers to trade and investment. Foreign direct investment (FDI) is expected to benefit poor countries such as Bangladesh in a number of ways. Firstly, it supplements domestic investment which is low due to lack of resources in these countries. Secondly, FDI is expected to generate employment, transfer, increase domestic competition and bring other positive externalities such as transfer of good practices. Bangladesh offers attractive investment opportunities to foreign investors and has adopted policies to attract FDI into the country. In fact Bangladesh seems to offer one of the most liberal FDI regimes in South Asia. The economic model was developed based on the past behavior of GDP and the external sector. It indicated that FDI is the sector having the most significant impact on GDP and aid the second most significant. While imports negatively affect economic growth, exports......

Words: 9177 - Pages: 37

Free Essay

Investment Climate in Bangladesh

...business in Bangladesh over years and what will be the course of actions in order to achieve the proper “Investment climate in Bangladesh”. The report is prepared in order to get the knowledge and fulfill the basic requirement to complete the course titled as “Economic Conditions Analysis”. b. Background of the study: Economics is a sea of theories. These theories are the stairway to lift us to a stage from where we can get the entire idea of its different sectors. “Economic Conditions Analysis” is basically theory related course in addition to a mixing of practical incidents to compare theories and its applications. Obtaining theoretical knowledge is only a halfway to reach the target because implementation of theories is the ultimate goal of it. Being a very practical course “Economic Conditions Analysis” requires a large extent of implementation of its theories and procedures in the real life. To meet up this requirement I have prepared the report titled “Investment climate in Bangladesh”. c. Objectives: 1. Broad Objective: The broad objective is to examine investment climate in Bangladesh over years and what should be done for better performance in the upcoming years. 2. Specific Objectives: The specific objectives of preparing the report are as follows: i. To present historical data regarding industrial policy, obstacles to implement and what should be done to create proper investment climate in Bangladesh. ......

Words: 4767 - Pages: 20

Premium Essay

Bus101 Group Project

...Rizvi Ahsan 1030703530 Prepared For Mr. M. Saidur Rahman Core Faculty, School of Business [pic] LETTER OF TRANSMITTAL December, 2010 Mr. M. Saidur Rahman (Saeed) Lecturer Department: School of Business North South University Subject: Submission of the Group Report Dear Sir, Enclosed is a copy of the group report entitled “Profile of an entrepreneur and his Business” submitted as a part of requirement for our BUS 101 course. In preparing this report, we have tried our level best to include all the relevant information and explanations to make the report informative and comprehensive. Helvetia, one of the pioneer companies in the fast food industry of Bangladesh is focused in this report. All the information stated in the report is factual and is taken directly from the interview with the entrepreneur himself on 1st December 2010. It was a very enriching experience for us to prepare this report. Our writing and communication skills have improved significantly while doing it. We will be available for any clarification, if required. Thank You for giving us this wonderful opportunity to work on this project. Sincerely, On behalf of the group, Md. Iftekhar Alam Acknowledgements We would like to thank the Almighty Allah for giving us the physical, mental and emotional energy, devotion, patience and the ability to work hard to prepare this research......

Words: 2918 - Pages: 12

Free Essay

Economic Growth & External Sector Behavior

...Executive Summary The report entitled “Analysis of Economic Growth and External Sector Behavior” mainly focuses on the study of the structure of the external sector of Bangladesh and its impact on GDP. It involves economic models developed to determine the impact of each sector-Export, Import, Foreign Aid and Remittance, on GDP of Bangladesh. It also involves an analysis of the behavior of these factors in three SAARC countries and the application of the regression model developed. The economic model was developed based on the past behavior of GDP and the external sector. It indicated that Remittance is the sector having the most significant impact on GDP and aid the second most significant. While imports negatively affect economic growth, exports have played a very important role over the period. The remittance of Bangladesh has been increasing over the last few years. Hence, its impact on GDP has also been rising. In the span of 34 years export as percentage of GDP increased from 2.2% to 15.4%. Hence, performance was moderately good. The economy has been suffering from ever increasing trade deficits, despite several export promotional measures. Large import payments mainly account for this problem. Foreign aid shows large fluctuations over the period Finally, an analysis was conducted on the behavior of the external sectors in the SAARC countries using the regression model. Export was found to be the dominant sector in India, while imports had the minimum impact on GDP.......

Words: 12238 - Pages: 49