1. business and industrial

January 2015 Tk. 100
Job
Prospects
Bright
But
Preparations
Poor
Processed
Food Industry
Packaging
Dreams
INFUSING
CORPORATE
CULTURE
'Aggressive diplomacy required to bring overseas business' Prof. MA Taslim
January - 2015
CONTENTS
6
from the editor
7
letters to editor
8
short takes
13
cover story
infusing corporate culture
24
interview of the month
prof. ma taslim
54
photo feature
salt industry
95
essay
corporate hunters
44
academia
breaking barriers
January 2015 Tk. 100
Job
Prospects
Bright
But
Preparations
Poor
Processed
Food Industry
Packaging
Dreams
INFUSING
CORPORATE
CULTURE
'Aggressive diplomacy required to bring overseas business' Prof. MA Taslim
Cover Photo :
Titu Zakaria
84
tourism
cox’s bazaar
52
gsr
more than csr
21
academia
bridging gaps
35
share market
year review
28
10
sector focus
packaged food industry
column
creating opportunities
40
62
global economy
global trade and economy
promotion
food and visa
66
63
tech
national hackathon 2014
corporate grooming
expensive perfumes
38
32
money matters
russian economy
regional focus
asean and saarc
88
blue economy
kutubdia
68
January - 2015
70
gadget
xiaomi redmi note 4g review
CONTENTS
innovation
creativity in uncertainty
64
startup
innovation xtreme
72
movies
sony’s post-hack image
74
different perspective
uber’s pr dilemma
60
dining
tarka
76
leadership
presence
78
growth
not worth it
80
career
right time to quit
82
aviation
new supersonic jet
90
word of mouth
FROM
THE
EDITOR
Glimpse of a few
pieces from our
January 2015 issue
A
Another year is gone and it’s a matter of enthusiasm that the New Year, 2015,
has arrived, offering a lot of expectation of positive changes to our life and
business. Of course a new year will do nothing unless we try to change our fate
and that is where the importance of entrepreneurship, or taking initiative lies.
As done earlier, ICE Business Times, in the outgoing year, tied to cover
consistently diverse issues of investment, industries, trade, development,
technology and many more to meet interests and some helpful information for the
stakeholders. In the current issue, we have come up with the lead story on
‘Infusing Corporate Culture’ to take a stock of the state of corporatisation,
corporate governance, corporate social responsibility, and relevant regulatory
affairs.
In an exclusive interview with ICE Business Times, reputed economist and head
of Dhaka University’s Department of Economics, Prof. MA Taslim pressed hard
on taking necessary steps to upgrade skills and productivity of the workforce. As
a former CEO of Bangladesh Foreign Trade Institute, he is anxious about the
persistent downturn in economic activity. But he is hopeful that as our
labour-intensive products such as apparel and footwear is less expensive,
Bangladesh should be able to gradually move out of the bracket of
Least-Developed Country (LDC) and march forward.
According to the University Grants Commission (UGC), around 400,000
graduates are coming to the job market every year, but another London-based
report, The Economist Intelligence Unit, said 47% of the graduate workforce
remained unemployed in Bangladesh. Lack of skills or whichever, should be
addressed and rectified, for the betterment of our succeeding generations.
As shown by British American Tobacco Bangladesh’s annual Battle of Minds
competition, rigorous tertiary education remains the cornerstone to a bright
professional career.
In our sector focus, we looked into how Bangladeshi agricultural goods are
making their way into the superstores of major cities. Local producers have
observed that there is a market for higher-end imported processed food in
Bangladesh. From there, they have realised that there is a market that can be
served with locally produced items. But in terms of quality, have our products
reached a status in world stage? Packaging machineries are also increasingly
being produced locally, which do not offer the longevity of international
machinery, but produce packaging of similar quality. Quality of raw materials
both for products and for packaging is dictating the quality of ultimate output in
this industry. Simply put, higher quality raw materials would produce better
quality product.
Finally, we would like to wish all our readers, patrons and well-wishers happy
holidays and a very happy New Year. We hope that the New Year would be a new
beginning in the quest of solidifying Bangladesh’s growing economy and bring
long-awaited confidence back into businesses.
LETTERS
TO THE EDITOR
Gazipur is indeed the next industrial hub
of the country. In fact, it can also be
considered to be one even now. But is it
really favourable to shift or switch
pressures away from Gazipur? This will
eventually change the way business is
looked at or planned. It’s not just cheap
labour oriented slums that makes Gazipur
the better location, but there are also
other factors like transportationa and tax
policies or other regulations regarding
opening industries. Of course I am in
support of the switch, because I should
love every other district of the country
having equal benefit from such industrial
hubs, as mentioned in that article.
Write to us at
businesstimes.1@gmail.com, or
send us a note at
www.facebook.com/icebusinesstimes
www.twitter.com/BusinessTimesBD
Be sure to visit our website
for online viewing
at www.icebusinesstimes.net
December 2014 Tk. 100
INTEGRATING
RURAL
BANGLADESH
How villages and remote areas get
connected to the market
TA Shakawat Salim, Chittagomg
The article about individualism and the
collective is well-comprehended, I can
relate to my personal experience and
believe that every entrepreneurs should
look fromt the writer’s perspective.
Current business organisations fails to
understand this aspect and causes
unbalanced or sometimes senseless
expectations. Also, I loved the article on
disasters. It really makes us hopeful of our
future and the nation.
The rise
of Gazipur
industrial
Hub
Binayak
Sen finds
elevation in
RMG workers’
status
‘200 TCF gas offshore can solve energy crisis’, says ex – BoI chief Faruq Sobhan
Marzia Farha, Bashundhara
Vol. 5 No. 5
Could you make a story on
traditional games? I have seen
earlier someone recommending
an idea, and then you covered a
story. I think traditional games
could be a good topic!
Hi, it’s been so long since you
have covered topics on
strategy. Those articles are
really helpful for young people
in profession. I hope you would
come up with more in the
future.
COMMENTS
Publisher & Editor
Executive Director
Managing Editor
Executive Editor
Editorial Assistant
:
:
:
:
:
Designer
:
Head of Marketing
:
Assistant Manager Marketing :
Executive, Marketing
:
Finance & Accounts
:
Sales & Distribution
:
January 2015
Abul Khair
Nawshin Khair
Nobonita Chowdhury
Khawaza Main Uddin
Wafiur Rahman
Ahmed Noushad
Sk. Yeahhia
Lucky Begum
Farha Tani
Farhan Nair
Md. Abdul Alim
Md. Manik Mollah
Md. Raju Hossain
Published by Abul Khair on behalf of ICE Media Limited, Kushal Centre, Plot 29, Sector 3, Uttara C/A, Dhaka- 1230
and printed at M.K. Printers,189/1, Tejgaon I/A, Dhaka-1208
Editorial and Commercial office:
Bengal Centre, Plot-2,Civil Aviation. New Airport Road, Khilkhet, Dhaka 1229.
Editorial Queries: businesstimes.1@gmail.com, wafiur.ibt@gmail.com
Advertising, Sales, Subscription and Distribution: 01711339587, 01819412035, 01920335953, 01716783698, 01675736760
Tel: 880-2-8901132, 8901135, 880-2-8901202 Fax: 88-02-8901205
E-mail: businesstimes.1@gmail.com, businesstimes.mkt@gmail.com
SHORT TAKES
Low pay, zero-hour
contracts rise in UK
Hackers target corporate
documents
The year 2014 saw a series of data breaches at US
corporations that sought customer credit card
numbers, user passwords, internal documents and
emails.Hackers broke into Sony’s network and
exposed employment and salary records,and
embarrassing private emails between Hollywood
executives. Home Depot said 56 million payment
cards had been stolen and 53 million email
addresses pilfered. A data breach at
JPMorgan altered 76 million households
and 7 million email businesses.
Hackers took customers’ personal
information affecting up to
154 million active users.
Target’s US sales were
‘meaningfully
weaker’ after a
late 2013 data
theft carried
The government plans to provide numerous tax
into
benefits in the proposed five economic zones to attract
2014.
both foreign and domestic investments. Land developers and
unit investors would be offered competitive packages. Incentives
include tax holiday and duty-free import of vehicles. The investors
may not need to pay income tax for their employees for 10 years.
Economic zones are the newest version of export
processing zones; the government will provide land
and utility, while investing companies will
develop infrastructures. The five zones
will be developed on 8,827.99 acres
of land and they are expected
to create jobs for 1.5
crore people by
2021.
New figures have revealed the dramatic spread of
low-paid, insecure and casual work across the British
economy since the financial crash of 2008. Then, one
in 20 men and one in 16 women worked in the
casualised labour market. Today, one in 12 of both
men and women are in precarious employment,
which includes zero-hours contracts, agency work,
variable hours and fixed-term contracts, according to
new TUC data. The number of men engaged in
casualised labour market rose to 1.06 million from
655,000 in 2008 and that of women increased to 1.08
million in 2014 from 795,000 in 2008.
Incentives
to sweeten
economic zone
deals
S
China leading the world in
innovation?
Chinese firms filed roughly the same number of
applications for “invention” patents as their counterparts in
Japan and America. By 2013 the Chinese figure had nearly
doubled even as the rates in the other two countries held steady.
The growth has been attributed to the out growth driven by the 12th
Five-Year Plan and the associated Chinese National Patent Development
Strategy. Of the desired 2m filings, many will be for “utility” or “design”
patents, which are said to be less substantial than “invention” patents. Almost
all filings over the past three years have come from local firms, not from the
Chinese divisions of multinationals.
India, a bright spot in Asia-Pacific
There is a sharp turnaround about India’s image as an investment destination among overseas analysts. Ratings agency
Standard & Poor’s (S&P) has called India the only bright spot in the Asia Pacific region in an otherwise shaky finish to
year 2014 with all other economies losing momentum. The reason for its sunny outlook for India was PM Narendra
Modi’s government that, the agency said, has picked up the pace of reform after a “modest” start. The agency said that
while China’s economy continues to slow, Japan is in “technical recession” and trade-dependent economies continue to
suffer from lack of external demand.
SHORT TAKES
Myanmar incentivising energy investors
State-owned energy firms in Myanmar will seek foreign partnerships to improve
operations and open up downstream energy operations to investment. So, the energy
industry, an important component of Myanmar’s economy, is likely to prove an
attractive prospect for overseas investors.In addition to the privatisation proposals, the
energy agency would offer nine new offshore blocks for exploration, in a further bid to
bolster Myanmar’s reserves and help meet rising domestic demand in the long-term.In
October, the World Bank upgraded its forecast of GDP growth to 8.5 % for the fiscal year,
from 7.8% previously, thanks to rising domestic demand and increased FDI inflows.
Mangroves’ economic potentials not yet
fully tapped
A lack of carbon finance mechanisms, appropriate policy
interventions, and rapid mangrove deforestation are responsible
for failure to tape economic and social benefits of mangroves,
says a UN report.Ninety percent of mangroves are found in
developing countries and many are under threat. UNEP
estimates the cost of the destruction of carbon-rich
RMG
mangroves, which are being cleared 3–5 times
sector
faster than terrestrial forests, at $42 billion in
targets
economic damages annually.The
management of coastal wetlands is a
$50b exports,
no-regrets approach, with many
leather $5b
additional ecosystem service
The country’s garment
benefits such as fisheries
industry is expected to fetch
production and shoreline
US$50 billion foreign exchange by
protection, which promote
2021. The target was set at the
adaptation in coastal
recently held Dhaka Apparel Summit.
communities.
Garment manufacturers and exporters,
leading global brands, investors, experts and
policymakers drew a roadmap to help
increase earning from RMG exports.
Bangladesh may also churn $5 billion
from exporting leather, leather goods
and footwear in four years.
Leather exporters expressed
the hope at the third global
social responsibility
conference, organised
by BGCCI and GIZ
at a city hotel
in Dhaka.
Most banks in Cambodia
underperforming
Majority of Cambodian banks are underperforming,
providing poor returns on their shareholder
investment. Average return on equity last year for 39
banks was just 6%, according to a report by
investment firm Mekong Strategic Partners (MSP).
Only four other big banks – Acleda, Canadia,
Cambodia Public Bank and ANZ Royal – are said to be
in a state of conform. Some banks who have been in
the market for 20 years are not earning enough
revenue to cover their costs.Given Cambodia’s risk
profile, a 15% return on equity is an acceptable level
for banks to target. But only five banks posted
15%return.
Regional connectivity on tourism emphasised
South Asian countries can integrate their tour packages to lure more tourists for visiting attractive spots. Such a call
came from the third Asian Tourism Fair held in Dhaka recently that recommended promotion of inter-regional tourism.
Nepal has Mount Everest and Bangladesh has Cox's Bazar and CHT that can feature an ideal tourist package. As tourists
often make plans to visit multiple destinations, the SAARC countries can offer an ideally suitable common package at
affordable rates. The SAARC region is one of the most diverse regions, which has been blessed with scenic beauty,
historic and cultural heritage sites, foods and hospitality.
CREATING OPPORTUNITIES
Strategising
on regional connectivity
may be one of major
growth drivers
By Hossain Zillur Rahman*
How connectivity could be utilised as a key factor to
attain higher economic growth with maximum welfare
gains for Bangladesh remains a critical question to
be dealt with, by all stakeholders. The blue
economy is the latest development jargon for us,
which needs to be translated into reality if we
are really serious to use regional connectivity
as a tool for development.
Already, the country enjoys a strategic
geographical advantage of being in the
neighbourhood of three dynamic
growth centres of the global
economy – India, China and
ASEAN.
Exploiting
this
advantage can be a critical
contributor to the desired
growth acceleration of the
Bangladesh economy.
10
January 2015
ICE BusinessTimes
CREATING OPPORTUNITIES
The opportunities in this area, as we have
shown in an earlier study, are twofold: (a)
Bangladesh may emerge as a connectivity
hub for these three growth centres, and (b)
the three growth centres may become major
export
destinations
for
Bangladeshi
products.
Besides, opportunities in the form of marine
fisheries, exploration of hydrocarbon,
increasing external trade and bridge
between major economic powers are
available for Bangladesh, provided required
policies and initiatives are undertaken to
exploit them.
We have also listed a number of strategic
challenges such as Chittagong port
governance, initiating steps on the
long-term agenda of a deep-sea port,
facilitating expanded use of Mongla port,
Padma Bridge, Dhaka-Chittagong growth
corridor, Integrated Multi-Modal Transport
Policy, mass rapid transit for Dhaka and
Chittagong, and upgrading investment in
railway and road maintenance funds.
Bangladesh is pursuing the goal of
achieving the middle income country status
and still a development status with around
US$1,000 may mean that problems of
poverty would still be substantially with us.
Clearly there is a need to sharpen our middle
income ambition towards the high end of
the range. We have already called for
adopting the goal of transforming
Bangladesh into the 30th largest economy
by 2030, from the currently level of mid-40s
worldwide.
This is in no way for an outside dream. What
we will need is, as research shows, an
acceleration in current growth rates by 2-3%
to a medium-high annual rate of 8% and
sustaining the same for two decades can
bring the scaled up middle income ambition
of 30th largest economy by 2030 within
reach.
Strategising on regional connectivity is one
of seven priorities we have identified as
having the most strategic promise for
accelerating such a growth process. They are
Overcoming the Infrastructure Deficit, New
Sectors, New Markets, Engaging on Skills,
Re-Positioning Agriculture for Growth,
ICE BusinessTimes
January 2015
Urban
Strategy,
Strategizing
on
Regional Connectivity and Sustainable
Adaptation to Climate Change. We
believe five important considerations
define the pursuit of our high-end
middle income goal and they are: high
growth, employment focus (inclusive of
self-employment), productivity increase,
economic
diversification,
and
environmental sustainability.
I think we need to study the current
situation in which major powers have
renewed their interests in the Bay of
Bengal region where we are not only
located but also our major economic
strengths lie. If we can’t hand the
challenges, our strategic advantage may
turn into trap and we may miss the
opportunities.
So, it is useful to maintain an awareness
of possible risks which could derail our
desired growth trajectory and afflict us
with the miss-the-bus syndrome which
has characterised some erstwhile
economies rated as potential but
subsequently becoming off-course. The
Philippines is a case in point here, rated
as the Asian country most likely to
succeed in 1960 but currently nowhere
near fulfilling this potential.
We need to ask ourselves about our
strategic strengths and weaknesses and
assess trends and situation in our
immediate neighbourhood and on
regional and global scene. Such exercise
is important for setting strategic
priorities targeting maximisation of our
national interests, especially economic
and developmental interests. We also
need to hold public debates and carry
out substantial research for supporting
Bangladesh’s interests in regional
connectivity or in exploiting the
potentials of the blue economy.
*Dr Hossain Zillur Rahman
is a former Adviser to the
Caretaker Government and
Executive Chairman of Power
and Participation Research
Centre (PPRC).
11
COVER STORY
INFUSING
CORPORATE
CULTURE
Corporatisation still at nascent stage
despite a consensus on corporate
governance; Business entities have
enormous scope to benefit from
By Rezvi Newaz
‘The world has enough for
everyone's need, but not
enough for everyone's
greed.’ This is a quote from
Mahatma Gandhi’s
philosophy, often used by Dr
AB Mirza Md. Azizul Islam,
a former finance and
planning adviser to the
caretaker government, to
depict a backward state of
corporate culture.
‘Individuals, say as
businessmen, may not be
willing to disclose what s/he
does for making profit.
Photos: Din M Shibly
Special Thanks: BAT Bangladesh
COVER STORY
But introduction of corporate
governance in business entities can
ensure transparency, accountability
and fairness in business practice
and serve interests of stakeholders,’
he said detailing his idea of
corporate culture.
Mirza Aziz, who once headed the
Bangladesh
Securities
and
Exchange
Commission
(BSEC),
regretted the delay in ensuring
demutualisation in stock market but
expressed the hope that businesses
would get rid of greed of any
individual if and when corporate
governance proper is there in
running the affairs of companies
and business organisations and
corporate culture is part and parcel
of business practices.
As a developing country with a
nascent
market
economy,
Bangladesh’s corporate world is
mostly
dominated
by
the
first-generation businessmen and
family-run companies. Of course,
there are efforts to introduce
corporate culture in business
entities. However the central issue
of it is good corporate governance.
There are confusing perceptions
about the state of corporate
government or about the issue itself,
among citizens, pressure groups,
14
international agencies and even
investors themselves.
In fact, Bangladesh lags behind
neighbouring countries, especially
India, let alone a global standard in
corporate governance. One reason is
that
most
companies
are
family-oriented.
Motivation
to
disclose information and improve
governance practices by companies
is not there as well. Companies and
individual businessmen receive
hardly
any
appreciation
or
perceptively tangible benefits from
corporate governance practices.
The current system does not provide
sufficient legal, institutional and
economic
motivation
for
stakeholders to encourage and
enforce
corporate
governance
practices. Failure in most of the
constituencies
of
corporate
governance is widespread. Poor
bankruptcy laws, no push from
international investor community
and limited or no disclosure
regarding related party(ies) are also
responsible for the situation.
Still, there is a silver lining of late –
the management and boards have
come to the conclusion that proper
governance processes can protect
corporate reputation, brand image and
shareholder value. According to
Pricewaterhouse
Coopers’
recent
Annual Global CEO Survey, 50% of
retail industry CEOs believes, there is
a strong relationship among all
elements of GRC (governance, risk and
compliance) and effective governance
can be a value driver and a benefit
versus a cost, to their companies.
The Board's general approach is to
act as a self-declared leader-with the
'my company' or 'my governance'
attitude is the root cause of poor
corporate governance practice, as
identified by Farhad Ahmed,
executive
director
of
BSEC.
Accordingly, the Board wants to stay
above accountability and performs
its duty in whatever way it likes. But
under corporate governance, the
Board is a corporate leader being
accountable to the shareholders
having fiduciary responsibilities to
them. ‘The Board sometimes
emphasises
keeping
the
management under their control
with policy and procedures instead
of making the Board members
accountable with any written policy
and reporting framework,’ he said.
‘Thus the tiers of corporate
responsibility and accountability do
not work well, which is not a good
sign for the corporate governance
and sustainable development.’
January 2015
ICE BusinessTimes
COVER STORY
CORPORATE
GOVERNANCE AS
BUSINESS AS USUAL
To get an insight into how
Bangladeshi
corporate
bosses
perceive corporate culture we have
talked to entrepreneurs of the first
generation
and
even
fourth
generation. And irrespective of their
age, each and every entrepreneur
has agreed that practicing corporate
culture is a must to ensure good
business in Bangladesh today.
Latifur Rahman, Chairman of
Transcom Group, thinks there is a
growing
recognition
among
Bangladeshi businesspeople that
corporate culture is required if
businesses are to be made
sustainable. The need to adopt
corporate style management will be
inevitable as business enterprises
become bigger in size and scale.
‘This would require bringing in
professional management alongside
the current entrepreneur/family
management,’ said Mr. Rahman, an
‘Oslo Business for Peace’ prize
winner of 2012, and expressed his
conviction
that
Bangladeshi
businesses have no other option but
to comply with best business
practices.
Hossain Khaled, president of Dhaka
ICE BusinessTimes
January 2015
Chamber of Commerce and Industry
(DCCI), is blessed with ‘feel good’ as
he is currently leading one of the
oldest business conglomerates in
the country, Anwar Group of
Industries, which, he says, follows
the best corporate practices.
Established way back in 1834 by
late Lakku Mia, Anwar Group
remained a family-owned business
concern. But, thanks to the prudence
of Mr Anwar Hossain, the chairman
of the group, who happens to be
father of Khaled, brought in
professionals from outside of the
family circle.
‘As one generation passed the
management responsibility on to the
next one, it transferred the
experience and wisdom achieved
during its tenure of business
operations. This knowledge is
rightly used by each new generation
to make their mark and take the
Group to new heights,’ Hossain
Khaled told. Overtime, he added,
their business entity grew to become
an industrial giant and succeeded in
creating
a
national
and
international network. Anwar Group
currently employs over 12,000
people, described as the backbone of
all the success. ‘None of our family
members are the owners, they are
paid employees only. This tradition
Photo: Stock
is the best example of practicing
corporate culture,’ he said.
Another entrepreneur is Asif
Ibrahim, Vice Chairman of Newage
Group of Industries, who came up
with another kind of thought in this
regard.
‘Corporate
culture
is
something that is still not widely
understood by the Bangladeshi
business houses,’ he said adding
that as many second generation,
foreign
educated
business
entrepreneurs have joined the
private corporate houses by this
time and more are joining, the
concept is increasingly gaining
momentum. Modern management
concepts highlight corporate culture
as an essential tool for any company
to grow and
expand
their
businesses. Delegation of authority
through several departments and
introduction
of
report-based
management are necessary in
Bangladesh context.
15
COVER STORY
CORPORATE CULTURE:
STILL A LIP SERVICE?
Despite increase in the share of
industry in the gross domestic
product, there are not many
catalysts who can be considered role
models in various industries for the
young entrepreneurs. Companies,
too, are yet to establish a proper
structure which can provide each of
them from the hassles of running
them haphazardly or only by using
individual talents and efforts at the
same time, incentive to reveal
information
and
improve
governance is also missing to some
extent. Weak legal framework is one
problem in this regard while the
society is in an interface between
informal
sector
and
formal
businesses.
So, a major weakness in ensuring
corporate governance is the virtual
absence of any pressure group.
Shareholders, investor associations,
16
institutional investors and the
financial press can play significant
role in this regard. Also they are
either not aware of their rights and
responsibilities or not organised
under a common platform to
demand
corporate
governance.
Under the circumstances, some
business leaders, who are a bit
frustrated at the slow pace of
corporatisation, reckon corporate
culture to be a lip service.
However, Latifur Rahman, who is
also a former president of
Metropolitan Chamber of Commerce
and Industry (MCCI), does not agree
with that. He thinks the challenge
for companies in adopting corporate
culture is not only employing
professional managers but also
empowering them with real and
meaningful authority. This, he
believes, is the ‘difficult inflection
point’ as companies might hire
professional managers but
entrepreneurs could still be worried
about handing over real authority to
them.
‘To
reap
the
fruits,
professional managers have to be
compensated
competitively,
empowered with real authority and
be treated with respect and dignity.’
Asif Ibrahim, also an ex-president at
DCCI, and Waii-ul-Maroof Matin,
CEO of and Chittagong Stock
Exchange,
echoed
the
same
sentiment about the state of
corporate culture. They feel the
businesses need to hold more
seminars and workshops to make
this concept popular amongst the
private sector entities. Adequate
training is also required.
January 2015
ICE BusinessTimes
COVER STORY
ANY STANDARD
DEFINITION
Bangladesh is
lagging behind in
implementing good
corporate practice
in comparison to its
neighbours
ICE BusinessTimes
January 2015
There is no single global corporate
culture and the concept varies
widely from one country to another
– from Japan to America, Europe to
the Middle East, said Waii-ul-Maroof
Matin. His idea is that as the
companies are in general going
bigger and going public, ‘the best
practices’ are expected to be targeted
to ensure stakeholders’ interests.
‘Also things are changing very fast
and of course for betterment,’ he
said referring to the regulatory
provision to use checklist to take
stock of the corporate governance
status of a company.
‘The
entrepreneur families are also
realising that good corporate
governance adds life to their
companies,’ he added.
IN A GLOBAL CONTEXT
The World Bank, in a study, has
drawn attention to the problems of
the Comptroller and Auditor General’s
(CAG) Office, internal audit, public
accounts, parliamentary oversight,
and public enterprises. It also
contains a section on private sector
accountants and auditors, which is of
primary concern to corporate
governance. The report found a
number of flaws in the accounting
process. The Asian Development
Bank has financed a project on
capacity building of BSEC and
selected capital market institutions.
In its project completion report, the
ADB mentioned that Bangladesh is
lagging behind in implementing good
corporate practice in comparison to
its neighbours, such as India and Sri
Lanka.
17
Photo: Stock
COVER STORY
THE ROLE OF CAPITAL
MARKET
The capital market has a weak link
with
the
movement
for
strengthening corporate governance.
The stock market scandals in 1996
and
2009-10
have
seriously
damaged instead the investors’
confidence in the stock market.
Moreover, there are no bonds
practically that could enforce
corporate governance principles.
Financing by banks is still regarded
the better instrument by most of the
companies since domestic banks
hardly cared about good accounting
or other disclosure, whereas foreign
banks are less interested in long
term industrial financing. Just about
250 securities are traded in
organised capital markets in
Bangladesh and the total value of
18
these securities is worth only a few
billion US dollars.
Dr Mohammad Musa, a professor at
School of Business and Economics,
United International University,
explained why the capital market
has not yet played a strong role in
the betterment of companies and
also in the economy. ‘The set of rules
and regulations governing corporate
behaviour
determines
how
corporations
are
governed.
Therefore, investor protection and
corporate governance are linked,’ he
said. ‘In places where corporate
governance is weak, outside
investors are vulnerable to insider
expropriation. In places where
corporate governance is strong,
outside investors are fully protected.
Insiders cannot expropriate them
(outside investors).’
If the capital market of a country is
not fully developed, investors are
deprived of opportunities to invest
in securities that offer better return
for acceptable risk. Corporations,
too, are deprived of external funds at
cheaper cost to finance new projects.
Therefore,
investor
protection,
corporate governance and capital
market development must go hand
in hand. ‘Good corporate governance
leads to better investor protection
and better investor protection helps
capital markets to develop better,’
the expert pointed out.
January 2015
ICE BusinessTimes
Photo: Stock
COVER STORY
Board members
are required to
understand the
whole gamut of
business. While
they must not
interfere in
day-to-day affairs, it
is important they
have full knowledge
of the business
process and
financial control
ICE BusinessTimes
January 2015
CHALLENGES AND
WAY-OUTS
To make corporate governance
popular the biggest challenge is to
change the mindset of the owners,
said Hossain Khaled citing the
example of BATA. ‘Customers are
using BATA shoes all over the world
without knowing who are running
the business. If BATA can make
money globally complying with laws
of the land, why then is a Hall-Mark
story in Bangladesh?’ he asked.
Farhad Ahmed of BSEC feels that the
corporate bosses should be made
responsible for the failure of big
companies. He emphasises avoiding
‘one man show’ in a company. ‘Other
than quick profit, the owners should
think about long term profit.’ If
Standard Chartered or HSBC can
make profit with a limited number of
branches why all state-owned banks
are
losing
concern
is
not
understandable to him. ‘We need
more of ‘SQUARE’ – like success
stories, not a ‘Hall-Mark’ scandal,’
the official said.
CSE’s CEO Waii-ul-Maroof Matin
underlined the need for education
and training for the board members
to raise their capacity and efficiency
to manage efficiently. Board
members are required to understand
the whole gamut of business. While
they must not interfere in
day-to-day affairs, it is important
they have full knowledge of the
business process and financial
control,’ he said. He observed that
while the entrepreneurs are held
responsible
for
corporate
governance, ‘we often forget that the
minority shareholders have their
responsibilities too’.
And the
independent directors appointed by
the families need to be ready to
shoulder more responsibility.
Asif Ibrahim thinks the main
challenge is in the mindset of the
private companies, majority of
which are still being run by the
owners. There is still a lack of trust
amongst them to delegate their
authorities
to
professional
executives.
Underlining the importance of
adopting corporate management
culture, senior business leader
Latifur Rahman said it would have
to be done by the business
enterprises themselves. ‘Outside
agencies or bodies cannot have any
role in this process,’ he opined.
As the primary regulator, BSEC
would be more visible, its ED Farhad
Ahmed said adding that they are
now looking after listed companies
and that soon under an amended
law non-listed companies would be
brought under the coverage.
19
COVER STORY
CONCLUSION
The
need
for
strengthening
corporate governance is now a
demand of time in line with the
global reality for a sound and
transparent corporate world system.
Given the globalisation of business
and improvement in monitoring of
corporate entities, investors are
willing to invest in companies where
there
is
demonstrated
good
governance practice.
Therefore, the guidelines to improve
general
quality
of
corporate
governance practices are a timely
initiative by the policymakers. In an
emerging market like Bangladesh,
the BSEC can provide conditions to
have independent directors on the
board and audit committee. The
independent directors must work
with integrity and should keep
board decisions confidential.
Corporate governance provides an
effective means of good corporate
behavioural process, which ensures
accountability of those who matter
most in the process and maximises
the value for the shareholders in a
fully transparent manner.
Unfortunately, some companies
listed with the stock market pay
inadequate attention to the ‘rules of
businesses’ and full disclosure of
information, demonstrating a lack
of
corporate
norms
and
responsibility. On the other hand,
there were hardly any rewards for
the companies that instituted
corporate governance practices,
neither were there any penalties for
failing to do so.
Dhaka Stock Exchange is going to
incorporate corporate governance
principles into the list to ensure a
competitive atmosphere in the
capital market. BSEC has notified
certain further conditions for the
public sector companies listed with
any stock exchange, to improve
corporate governance in the interest
of investors.
However, the government cannot
legislate the personal integrity of
key players and no amount of
legislation can substitute trust, faith
20
and confidence necessary for good
corporate governance practice. As
the lead regulatory body overseeing
corporate accounting and reporting,
the BSEC has a critical role to ensure
that public company boards are
properly structured and organised
and have the resources to
accomplish the objectives of adding
value to shareholders, minimise risk
of key shareholders and hold
management
responsible
for
corporate results.
January 2015
ICE BusinessTimes
MANPOWER
JOB PROSPECTS BRIGHT,
BUT PREPARATIONS POOR
Rate of unemployment still
confusing; new survey
would show rising
under-employment
By Rabiul Islam
ICE BusinessTimes
January 2015
Having either no specific goal or no goal
at all, the majority of both educated and
less educated youths in Bangladesh
look for jobs in a traditional manner,
rather than equipping themselves with
necessary arms to meet requirements of
diversified labour market. There is no
policy or arrangement either to facilitate
job-seekers to seize future
opportunities.
21
MANPOWER
Over the past three decades, the
economy sees significant growth,
per capita income increases and the
people’s
choice
has
become
diversified and industrialisation is
taking place gradually. With the
rapid urbanisation, a large segment
of the population would live in the
city, so establishments of hotels,
motels and restaurants would see
robust growth.
A bulk of employment opportunities
would be created in the services
sector, and it is necessary to create
skilled manpower to tap the
opportunity or in other words to
meet the requirements of the
employers. This imperative is of
course well-known to all, especially
policymakers but the jobseekers are
yet to be made ready.
‘I will do whatever job I get’, Anisur
Rahman said instantly when asked
what kind of job he was looking for.
He has just completed MA in
political science from Chittagong
Government College. Rahman, who
hails from Cox’s Bazar and has come
to Dhaka city in search of
employment opportunity, dreams of
a job only for his survival; he has no
choice but embrace any whenever
and whatever he is offered one.
Shajib Raha is a BBA student of 9th
semester at East West University,
who dreams of a job at a
multinational company or a bank.
Raha, who is yet to face the harsh
reality of the job market, is still
optimistic about getting the job of
his choice.
According to the labour survey
report 2010 of Bangladesh Bureau
of Statistics (BBS), the total number
of employed people in the country is
5.41crore. Of them, 2.57crorepeople
are engaged in agriculture, forestry
and
fisheries.
67
lakh
in
manufacturing, 84 lakh in trade,
hotel and restaurant, 40 lakh in
transport,
storage
and
communications, 34 lakh in
community and personal services,
26 lakh in construction and 23 lakh
22
Photo: Stock
O
people in health, education, public
administration and defense. And the
rest of the people are engaged in
other sectors.
BBS report showed only 26 lakh
people to remain unemployed.
However, the public agency would
launch the latest report the next
month. The officials, who are
preparing the report, said the rate of
under-employment is increasing.
According
to
the
latest
(unpublished)
survey
report,
approximately 25,80,000 people are
currently unemployed in the
country. Officials consider the figure
to be positive as the unemployment
rate falls although the population
increased.
When a Master’s degree holder does
the work of an office assistant, it is
considered as underemployment.
When a person works for only two or
three hours a day, that is
underemployment too. Officially,
underemployment means when a
graduate is doing some work, he or
she is not supposed to do.
London-based
The
Economist
Intelligence Unit reported that 47%
graduates are unemployed in
Bangladesh. That report titled ‘High
University
Enrollment,
Low
Graduate
Employment’
found
increased participation in the higher
education.
According to the University Grants
Commission (UGC), the regulatory
body of the tertiary educational
institutions,
around
4,00,000
graduates are coming to the job
market every year.
Apart from graduates, around
5,00,000 students either fail or
obtain poor GPA in Higher School
Certificate (HSC) examinations and
they cannot go for higher education.
They are considered dropped out
students.
Bureau of Manpower, Employment
and Training (BMET) director
(training)
Khalilur
Rahman
admitted to this author that there
are no facilities to train up such a
huge pool of dropped out students.
He said that these youths could be
given two years’ training course in
various trades including electrical,
automobile, refrigeration, wielding
and civil construction. ‘If they are
given training, they would get job.
Many private companies seriously
January 2015
ICE BusinessTimes
MANPOWER
lack this type of skilled manpower.’
The official also felt that a Skills
Development Board should be
established. Besides, a directorate
for skills development could be
formed to support the young
workforce.
The Philippines created Technical
Education and Skills Development
Authority in 1995.
Former President of Bangladesh
Employers’ Federation and a leading
industrialist Md Fazlul Hoque said
around 2,00,000 people from lower
level to higher level are required in
the manufacturing sector. ‘We the
investors are disappointed at the
quality of the education,’ Hoque told
this writer.
‘When we raised the issue, the
authorities concerned criticize us
instead of understanding the issue,’
he pointed out. ‘We don’t get skilled
manpower.’
Hoque observed, ‘We as a nation
have no preparations to tap the
future opportunities’.
Bangladesh Association of Software
and Information Services (BASIS)
President Shamim Hasan said
7,50,000 people would be required
ICE BusinessTimes
January 2015
by 2018. The required manpower
includes
online
application,
e-commerce and graphic design.
‘We have so far a good preparation
to supply the requirement,’ Hasan
claimed.
A joint secretary at the labour
ministry said that there were huge
job opportunities in various sectors
including
RMG,
leather,
pharmaceuticals, ship building, and
plastic industry. ‘We have no policy,
no preparation to seize the
opportunity. We are busy making
money,’ regretted the official who
preferred anonymity as he is not
authorised to speak to the media.
Managing Director of Bengal Tour
Masud Hossain noted that there are
job opportunities in tourism sector.
‘But we do not have skilled
manpower to meet the requirement’.
He
mentioned
that
several
thousands of skilled manpower is
required in hospitals, hotels, motels
and restaurants. At the moment,
30,000 to 40,000 trained people are
needed in Dhaka. Unfortunately this
requirement is not fulfilled.
‘We have no such institution so that
we can produce housekeepers,
waiters and front desk people,’
Masud added.
Without the government’s support
and involvement, this sector would
never flourish, he observed. Asked
about future requirement, he said it
is difficult to provide statistics as
there is no survey in this regard.
Bangladesh is one of the largest
labour sending countries and
around 8 million people are working
abroad, mostly in the Middle East
countries. However, there is no
accurate data.
The country receives around $14
billion as remittance annually and
around 4,00,000 jobseekers go
abroad seeking jobs every year.
Talking to officials concerned, it is
found that the government has no
long term plan to tap the future
opportunities.
‘We had no long term plan but now
we are collecting information
through our embassies to prepare
such a plan in future,’ expatriates’
welfare and overseas employment
ministry joint secretary Nurul Islam
told this author.
According to BMET statistics,
between 2010 and 2014, a total of
23,54,113 migrants went abroad for
jobs. From 2005 to 2009, a total of
28,17,160 migrants had gone
abroad for jobs and such number
between 2000 and 2004 was
11,64,055.
In this regard, the ministry officials
said the overseas job markets
witnessed fluctuations in recent
times. Around 15,00,000 workers
went to Malaysia in 2007 and 2008,
they mentioned, saying the figure
shoot up between 2005 and 2009.
In the wake of shrinking job market
in recent years, the private recruiters
view that new labour markets have
to be explored. Senior vice president
of Bangladesh Association of
International Recruiting Agencies
(BAIRA) Ali Haider Chowdhury said
population is decreasing in many
countries, especially developed
ones, where the number of aged
people is rising, who actually need
care givers.
‘As we have huge number of youths,
we can train them and send as care
givers,’ Chowdhury said.
Experts view that there are huge gap
between
generating
skilled
manpower and to supply to the
labour market.
They mentioned that there is huge
demand of various types of skilled
people in RMG. But supply does not
match, they added. As a result large
number of people from Sri Lanka
and
India
are
working
in
Bangladesh.
They
suggested
streamlining vocational education
to generate skilled manpower.
Centre for Policy Dialogue Executive
Director Mustafizur Rahman echoed
the same voice as he said available
manpower does not match the
requirement of the industry. ‘We have
given emphasis on the 7th five-year
plan to create skilled manpower so
that they meet the requirement,’ the
economist said. He cautioned that the
plan has to be implemented in a
concerted manner.
23
INTERVIEW OF THE MONTH
AGGRESSIVE
DIPLOMACY
REQUIRED TO
BRING
OVERSEAS
BUSINESS
Prof. MA Taslim emphasises substantial
improvement in investment climate
for higher growth
By Khawaza Main Uddin
INTERVIEW OF THE MONTH
----------------------------------------------------------------• Business outlook not very bright
• Uncertain politics engender negative expectations
• Apparel and footwear should carry the economy forward
• Aggressive salesmanship may help Dhaka achieve East Asian momentum
• Increase in investment in education is needed to build manpower
• Entrepreneurs are born, not created, so they need nurturing
• Civil society voice important in society
-----------------------------------------------------------------
I
24
It is extremely important to take urgent steps to upgrade
skills and productivity of the workforce to stay competitive
in the global market, says economist Mohammad Ali
Taslim, as Bangladesh is set to graduate out of the league
of Least Developed Countries (LDCs) in a decade or so and
lose duty-free access to advanced countries.
He feels that the sorry state of infrastructure and serious
governance related problems, makes business investments
expensive and hence unattractive. ‘Investment depends
both on the cost of investment and business expectations
about the future state of the economy,’ Prof. MA Taslim,
former chairman of Tariff Commission and currently the
chairman of Economics department at Dhaka University,
told ICE Business Times in an exclusive interview. He
blamed the domestic political uncertainties for deterring
investments.
Also a former Chief Executive Officer at Bangladesh
Foreign Trade Institute, the economist expressed his views
that those who represent the country must be able to
project an image of Bangladesh that encourages overseas
business to source merchandise and invest here. He
mentioned that the country’s education, which is ‘in
shambles’, cannot supply a competitive workforce for
world class enterprises.
Asked about how to support entrepreneurs, Prof. Taslim
said the government could perhaps ensure that
entrepreneurs are nurtured by means of business-friendly
policies. ‘Successful entrepreneurs and trade bodies could
initiate programmes to incubate entrepreneurship and
sustain fledgling entrepreneurs.’
January 2015
ICE BusinessTimes
INTERVIEW OF THE MONTH
How do you look at the
current trends of business in
Bangladesh?
The downturn in economic activity
seems to be persisting. The private
sector has not picked up. The
private sector credit growth has
suffered some reduction on both
year-on-year basis and during
July-October period. Banks are
beleaguered by ever increasing
non-performing loans. Export is
almost stagnant (July-November)
and there is minimal growth in
imports (July-October) suggesting
weak
industrial
growth.
Agricultural output is also likely to
be stagnant. Business outlook does
not look very bright.
What would you suggest to
bring improvement in
investment climate?
Investment depends both on the
cost of investment and business
expectations about the future state
of the economy. The sorry state of
infrastructure
and
serious
governance related problems makes
business investments expensive
and hence unattractive. The
uncertainties
regarding
the
domestic political situation and the
general break-down in law and
order
engender
negative
expectations about the future of
business and deters investment.
Substantial improvement is needed
to attract large volume of
investment.
Where are, in your views, the
country’s strengths and
weaknesses in terms of
external trade?
A vibrant private sector producing
relatively
less
expensive
labour-intensive products such as
apparel and footwear should carry
the economy forward during the
next decade or so. Generous trade
preferences (GSP) granted by most
developed
countries
are
an
important factor in making our
26
products competitive in the external
market. However, these may become
a handicap in the future unless
urgent steps are taken to upgrade
skills and productivity of the
workforce. This is extremely
important in view of the fact that
Bangladesh will graduate out of the
LDC league in about a decade or so,
and consequently lose its duty-free
status.
How would you define the
role of economic diplomacy in
promoting trade and
attracting investment?
Economic diplomacy is another
name for salesmanship. Those who
represent the country must be able
to project an image of Bangladesh
that encourages overseas business
to source merchandise and invest
here. Bangladesh is yet to achieve
the momentum of the East Asian
countries in their formative years.
Aggressive salesmanship to project
the strengths of the country will
help to build that momentum.
What is your assessment of
the state of regional
cooperation, especially the
connectivity, for promotion of
national interests? How do
you evaluate Bangladesh’s
geo-strategic location in
building bridge between
SAARC and ASEAN and
between economic
powerhouses?
Just about every country regards
itself as having a geo-strategic
importance, and each country has
the capacity to build itself as an
important
partner
of
other
countries. But this requires internal
strength which can be derived from
having a strong thriving economy
and a stable political and
macroeconomic environment. The
real danger is always within.
How do you see the current
education for making
Bangladesh a strong player in
the international arena?
What are your thoughts in
this regard?
Our education is in shambles. It
cannot supply a competitive
workforce
for
world
class
enterprises. Uncalled for political
interferences
in
educational
institutions
must
cease.
Appropriate policies must be
deployed to select, employ and
retain the right kind of teachers and
trainers. Students must have the
right incentives to work hard to do
well. These will require a large
increase in investment in education
and a sincere political will. Given
the background of our politicians
and elite, they have not yet woken
up to the need for proper education.
They have the illusion that grades
and certificates are true measures
of education.
Would you please share your
thoughts of entrepreneurship
and how youths could be
promoted for taking up
business initiatives?
It is said that entrepreneurs are
born, not made. The government
could
perhaps
ensure
that
entrepreneurs are nurtured by
means of business-friendly policies.
Successful entrepreneurs and trade
bodies could initiate programmes to
incubate entrepreneurship and
sustain fledgling entrepreneurs.
What are the sectors or
groups outside of the
government and business
community that could play
important role in bringing
changes in business
environment for ensuring
maximum welfare gains?
The civil society could forcefully
voice public demand in order to
prevent excesses by either group.
January 2015
ICE BusinessTimes
SECTOR FOCUS
EATING FORWARD
Processed Food Industry of Bangladesh
Beckons High Export
By Ahmed Sharif
Sharika Sandil is newly married.
Her husband works for a
multinational company, while she is
engaged with her MBA. Like many
other young couples living in
Dhaka, they have less time for
everything.
Looking
for
convenience, she looks towards
superstores near her home. And
that’s where she got introduced to a
variety of products, especially food
products. ‘Products are not visible at
normal retail stores. If a new
product comes out, how would I
know that they have it in their
store? Superstores display all
products in front of me, and I can
spend a long time looking at
28
products and can compare them,’
she said. She also said that after
discovering new products at
superstores, she again looked for
those at other typical stores.
Superstores have introduced a new
level of convenience to these busy
consumers of today. And various
marketers
have
taken
the
opportunity to come up with
convenience products that go with
this new lifestyle. Some of the
biggest participants in this new
marketing game are processed food
companies. Starting from packaged
groceries and spices to frozen food
items, snacks and dairy products,
this is one of the most vibrant
marketing areas in this growing
economy.
The glitz and glitters
The posh end of Bangladeshi
agriculture goods can be seen at
superstores Dhaka and some other
big cities. Shelves are being filled
with food products coming out of
the production lines of local
factories, utilizing agro-products
produced locally or at least
processed locally. New products are
being added every other day. ‘Just
three years back, when our store
started, there were only three
brands in the market; today there
January 2015
ICE BusinessTimes
SECTOR FOCUS
are
seven,’
said
Habib,
Floor-in-Charge at Carre Family, a
superstore at Mohammadpur area
of Dhaka City, referring to frozen
food items. ‘We had to add and
expand a completely new section to
accommodate the huge number of
(frozen food) items,’ he added.
There was a time when foreign
brands used to dominate here.
Being of high price, they mostly
attracted local elites. But things
have changed dramatically over the
last decade or so. ‘Local producers
have observed that there is a market
for higher-end imported processed
food in Bangladesh. From there,
they have realized that there is a
market that can be served with
locally produced items,’ said Md
Iktekar
Hossain
Sohag,
Sr
Executive, Brand at Romania Food
& Beverage Ltd. He also attributed
the rise in local demand to big
population and higher purchase
capacity. He thinks that higher
purchase capacity has pushed
consumers to look for better quality
food items, and that packaged food
is now being more and more
associated with better quality.
Sharika
Sandil
agrees
that
packaging has a role to play to gain
her confidence. ‘I bought some
sausages a few days back after
being impressed by the posh look of
the packaging,’ she said. Though
she failed to remember the brand
name, she thinks that reputed
brands come up with better
packaging that goes a long way to
gain her confidence. And it now
seems that frozen food companies
like Golden Harvest, Harvest Rich,
Pran, CP, BRAC, Aftab, Saint Martin
Group, Bengal Meat, Kazi Farms
and others are listening. Md Kamrul
Islam Chowdhury, Brand Manager
at Six Seasons Food & Beverage
thinks, ‘Packaging in very important
for brand aware consumers. A
lucrative packaging is usually
associated with good brands.
People’s perception says that good
looks are a prerequisite of good
quality.’
The hard reality of
crossing the border
But in terms of quality, have our
ICE BusinessTimes
January 2015
products reached a status in world
stage? Not necessarily. Industry
people think that we are still some
distance away from equaling
technology standards prevailing in
the Western world. ‘We have
compared our products with that of
Europe and Latin America. Their
products differ a great deal from
ours in terms of taste because of
difference in quality of machinery.
Their packaging is also of much
better quality. We had designed a
pack and printed it locally as well as
in Europe. It was quite obvious that
their printing quality was a great
deal better than ours,’ said Kamrul
Islam Chowdhury of Six Seasons.
Quality is also related to the
willingness of the consumers to pay,
said Iktekar Hossain Sohag of
Romania. He thinks that only the
local producers with a certain level
of quality are able to export their
products. Producers are willing to
invest behind higher quality food
that would be sold at a higher price
abroad.
‘There
are
many
international brands competing for
each market. To survive there, we
have no other way but to invest
behind quality,’ he said. To upgrade
quality of products for international
market, raw materials are being
acquired more selectively and
packaging materials are also being
selected prioritizing quality. But
because of the development of some
food processing machinery in
Bangladesh, it is increasingly
becoming possible for local food
producers to offer products of
certain quality to local consumers.
Packaging machineries are also
increasingly being produced locally,
which do not offer the longevity of
international
machinery,
but
produce packaging of similar
quality. Quality of raw materials
both for products and for packaging
is dictating the quality of ultimate
output in this industry. Simply put,
higher quality raw materials would
produce better quality product.
The quality game
One of the big challenges in making
our agro-products internationally
competitive is ensuring the quality
of
raw
materials.
Industry
concerned think that high usage of
agro-chemicals, lack of sanitary
facilities in rural areas and
proximity of some agricultural areas
to cities where pollution level is
high are some of the major areas
that need to be worked on to ensure
better inputs for this industry.
‘Vegetables produced at Savar and
North Bengal may look similar in
freshness. But the ones produced at
Savar contain much higher level of
toxic lead because of proximity to
Dhaka,’ said Iktekar Hossain Sohag
of Romania. He mentioned that his
exposure to a training organized by
Asian Productivity Organization
(APO) has opened his eyes to the
many facets of quality maintenance
in agro-food processing. A lot of the
companies are also going for
international certification to explore
foreign markets. A recent venture to
upgrade Bangladesh Standards and
Testing Institution (BSTI) food
testing laboratory with Indian help
under the Line of Credit (LoC)
agreement to standardize BSTI
certification can potentially go a
long way to help Bangladeshi food
products become more competitive
in Indian markets. Currently,
attaining clearance certificates from
Indian authorities kill enough time
at the border to discourage
processed food export to India.
News of upcoming BSTI upgrade
encourages industry people, but
some
are
still
apprehensive
regarding the serving (or the lack
there of) mentality of the BSTI
people.
Put it in a package
Although processed food items have
a good market abroad, the local
market is still the focus of attention
for most producers. An estimated
growth rate of 15-20% over the last
one decade made this one of the
most lucrative markets to invest in.
And one of those big investment
areas is packaged grocery – mainly
atta, flour (maida), semolina (suji).
Within just a few years, a large
portion of the un-organized market
for these items had been replaced by
packaged items produced by large
companies with big investments. To
prove that this market is still a
29
SECTOR FOCUS
growth hub, one of the giants of the
Bangladesh
business
scene,
Bashundhara Group, just hit the
market with a Tk 2,000 crore 1,000
ton-per-day capacity plant on the
banks of the River Buriganga to
produce atta, flour and suji.
Existing companies like City Group
(Teer brand), Meghna Group (Fresh
brand), TK Group (Pusti brand), ACI
(Pure brand), Ifad and others are
likely to take note of this to be more
competitive. Consumers may get
benefited from the resulting
competition, provided that the
government keeps the whip ready
for any kind of price manipulation.
Similar changes took place in
packaged spices. Square Group
(Radhuni brand), Pran, BD Foods,
ACI (Pure brand), Partex Group
(Danish and Rani brands), Aftab,
Arku, Meghna Group (Fresh brand),
and many others have brought
convenience to the consumers,
especially
the
urban
busy
consumers.
Convenience-seeking
consumers like Sharika Sandil
think, ‘Some of the older generation
may still be relying on their own
spice grinding process. But their
next generation would certainly
move to the packaged spices.’
Convenience-seekers gave birth to a
market for mixed spices. ‘It may not
have the taste of spices that my
mother used to prepare on special
occasions spending a lot of time.
But this does the job for me
considering the time it saves,’ she
said. All types of mixed spices found
their way into consumer hands Biriani masala, tandoori masala,
kabab masala, fish masala, meat
masala, halim mix, khir mix, and
what not. Though negative publicity
in recent times regarding packaged
spices did much harm, industry
concerned think that it is not likely
to make consumers leave the whole
category.
Showing
production
processes in TV advertisements are
having some positive effects, they
say.
Shift in food habit
It is not just convenience-seeking,
some industry people think that a
shift in food habit among
consumers have helped to establish
30
some food products. Snacks items
filled the afternoon-evening gap.
‘There was a time when people were
only depending on rice. But now
there is a need for more diverse and
new kind of food,’ said Kamrul
Islam Chowdhury of Six Seasons.
Chanachur, biscuits, chips, daal
bhaja, peas, mango bar, chutney,
and many other products are
coming up on a regular basis. This
highly competitive market has
Bombay Sweets, Pran, Partex Group
(Danish), Bengal Group (Romania),
Quasem Food (Sun), Ifad, Square
Group (Ruchi), Six Seasons, Haque,
BD Foods, Olympic, Goldmark, and
many other players. Noodle is
another product that elbows into
this segment, though it has more
diversity in its consumption. Nestle
(Maggi), Pran (Mr Noodles), Colola,
Shejan, Ifad, Mama and many
others have made this a happening
market. New Zealand Dairy was the
latest entrant in this market in
October 2014 with their ‘Doodles’
and ‘Poppers’ brands. Some frozen
food items have taken a very
important place in this happening
segment. Busy consumers like
Sharika Sandil find convenience in
this, ‘Some of the frozen items are
very effective as evening snacks.
Samosa, singara, rolls, French fries,
and many other frozen products are
now
available,
which
make
entertaining guests very easy.’
Chicken and meat products sneak in
here to compete with other mostly
vegetarian products. And do not
forget to add the taste items like
tomato sauce, chili sauce, garlic
sauce, and others. Pickles would
also find their way somewhere
around here. The diversity of
products in this market segment is
evidence of the market’s maturity.
People are no longer happy with
basic products, and producers are
always trying to discover areas of
differentiation with new products,
flavours, advertising, packaging,
promotional campaigns and other
marketing tricks.
Dairy products – waiting
for something?
The one area of processed food that
has not yet seen an explosion is the
dairy sector. Unlike the Indian
market, Bangladeshi market is
heavily dependent on imported milk
powder. Local milk producers have
not flourished like other processed
food. Milk Vita, BRAC (Aarong),
Pran, Akij (Farm Fresh), Abdul
Monem (Amo Milk), RD Milk, and
some others keeping this sector
going.
But
considering
the
dominance of imported milk
powders in the market, it can be
said that the sector needs a lot more
than just increase in production to
make its position strong.
The agricultural revolution in
Bangladesh over the last two to
three decades has ushered a new era
of opportunities for the country. A
stable economic growth has created
a dynamic local market that has
built the base for competing in the
international stage. There are many
areas that still need to be improved.
But looking back at the journey, we
can find inspiration for the
upcoming
battle.
Industry
concerned think that the way this
industry is currently progressing,
Bangladeshi processed food would
attain a strong position in the
international market within a
decade.
January 2015
ICE BusinessTimes
REGIONAL FOCUS
ASEAN AND
SAARC IN
INTRA-REGIONAL
CONNECTIVITY
By Ashik Chowdhury
The Association of Southeast Asian
Nations (ASEAN) is heading for
forming an Economic Community by
2015.
In
its
immediate
neighbourhood, the South Asian
Association
for
Regional
Cooperation (SAARC) is struggling
for making headway towards
greater cooperation. While ASEAN is
marching forward with economic
development
and
regional
integration, the SAARC nations are
yet to break the mental barriers to
establishing connectivity among
themselves.
Before looking into the comparative
facts and figure of the two groups in
furthering regional connectivity and
integration, the charter of the South
Asian Association for Regional
Cooperation
(SAARC)
needs
rereading. Established in 1985,
SAARC in its charter included that
the objectives of the Association
shall be:
1. Promoting the welfare of the
peoples of South Asia and to
improve their quality of life;
2. Accelerating economic growth,
social progress and cultural
32
development in the region and
providing all individuals the
opportunity to live in dignity
and
realising
their
full
potentials;
3. Promoting and strengthening
collective self-reliance among
the countries of South Asia;
4. Contributing to mutual trust,
understanding
and
appreciation of one another's
problems;
5. Promoting active collaboration
and mutual assistance in the
economic, social, cultural,
technical and scientific fields;
6. Strengthening cooperation with
other developing countries;
7. Strengthening
cooperation
among
themselves
in
international
forums
on
matters of common interests;
and
8. Cooperating with international
and regional organisations
with
similar
aims
and
purposes.
The eight major objectives of the
currently eight-nation (Bangladesh,
Bhutan, India, the Maldives, Nepal,
Pakistan,
Sri
Lanka
and
Afghanistan) regional group do not
have any direct reference to the
objective
that
relates
to
establishing,
maintaining
and
improving cooperation covering the
area of intra-regional trade and
connectivity. However, it is obvious
that some way or other the specific
one is implied among the eight
major objectives. In other words, the
ultimate goal of the SAARC charter
is
to
establish
a
regional
connectivity to shore up trade,
businesses and investment among
the
member
countries.
The
connectivity through road, rivers
and railways is perceived as an
economic necessity and constitutes
a part of the service industry during
the days of globalisation.
The size of the economy of SAARC
group is the 3rd largest in the world
in terms of GDP (gross domestic
product) in the scale of PPP
(purchasing power parity) after the
United States and China and the 8th
largest in terms of nominal GDP.
SAARC nations comprise 3% of the
world’s area and in contrast have
January 2015
ICE BusinessTimes
REGIONAL FOCUS
21% (around 1.7 billion) of global
population.
Now, the question arises about the
achievement of the SAARC in its
near three decades of existence.
There
are
some
noticeable
progresses in establishing the belief
among the member states that
stronger connectivity is crucial for
this region’s robust economic
growth and therefore achieving
political stability. There is also
visible headway in steering a solid
initiative to establish new and
upgrade the existing physical
connectivity among the Southeast
Asian nations.
In particular, Bangladesh has long
been trying to have a road
connection with Nepal and Bhutan
through Indian Territory and
eventually with Kabul through
Pakistan. But the initiative got
headwind from Pakistan at the 16th
SAARC Summit at Thimpu, Bhutan
when
the
country
refused
endorsement of the Motor Vehicles
Agreement, which would provide
connectivity between Dhaka and
Kabul crisscrossing the region.
ICE BusinessTimes
January 2015
Beyond SAARC, Bangladesh is also
collaborating with an initiative
establish an economic corridor to
have land connectivity with China,
India and Myanmar. The idea was
mooted by a group of economists in
Dhaka in 1999, which is known as
‘Kunming Initiative’. Since then, the
idea has been moving forward
though at a snail’s pace.
The most recent update of the
initiative is the first meeting of the
joint survey team of the four
nations, which was held in
December in Cox’s Bazar. The team
assessed that there would be need
for an investment of around of $22
billion for establishing the economic
corridor. The corridor would also
strengthen the connectivity among
the SAARC group.
Apart from these initiatives and
some signs of achievement, the
success of SAARC falls far behind
the achievement of another regional
group - Association of Southeast
Asian Nations (ASEAN). It was
established in 1967 as a five-nation
group of Indonesia, Malaysia, the
Philippines, Singapore and
Thailand. Later it became a
10-nation group with inclusion of
Brunei, Cambodia, Lao, Myanmar
and Viet Nam.
As far as connectivity is concerned,
ASEAN made significant progress in
its nearly 50 years of journey. With
effective initiative of ASEAN leaders,
the group has succeeded in
establishing an intra-state and
regional
connectivity
with
a
combination of roads and air
networks.
Currently, Thailand, Malaysia and
Singapore are connected through the
North South expressway. There is a
similar link road to connect
Myanmar, Thailand and Cambodia.
Most of the capitals of the ASEAN
states are also connected with
each-other by direct flights.
Unlike ASEAN group, SAARC has so
far established very limited indirect
land routes in operation between
India and Pakistan or India and Sri
Lanka. Single transit routes connect
Petrapole, India to Benapole,
Bangladesh.
Bhutan
and
Bangladesh are connected through
Phuentsholing, Bhutan, Jaigaon and
Changrabandha,
India
and
Burimari, Bangladesh. Nepal and
India are linked by border towns of
Birgunj
and
Raxaul.
The
Kabul-Pakistan highway connects
Pakistan and Afghanistan.
Direct flight connectivity in SAARC
is also minimal. For instance, there
is no direct flight between Dhaka
and the destinations including
Colombo, Male and Kabul.
The comparison clearly displays a
large disparity between the Cross
Border Integration (CBI) of SAARC
and ASEAN. Experts believe that
ASEAN advanced more than SAARC
in CBI mainly because of its massive
intra regional trade, which drove its
members to soothe out their trade
barriers by the existing zero tariff
regimes among most of its members
including the original five members
and
Brunei.
Some
effective
initiatives such as the ASEAN
Transport Action Plan 2005-2010
also facilitated its members to
establish new roads and air
33
REGIONAL FOCUS
networks and upgrade the existing
ones. Resultantly, the group is
advancing at comfortable pace to
fulfill the ambition of forming an
Economic Community by 2015.
SAARC leaders in different summits
recommended addressing the CBI
and the regional multimodal
transport to link its member states
through various corridors, but the
progress towards achieving the
target was so far slower than it
should be.
The major hindrances to making
progress include inadequate rules
and regulations for crossing the
borders, lack of formal transit
agreement at regional level or
bilateral level, lack of better political
trust and understanding and
skepticism about benefits of the
regional link like transit.
The Asian Development Bank (ADB)
approved a loan for the SAARC
corridors under the Asian Highway
Network project, but the pace of
progress to implement the project
was
incredibly
slow.
The
intra-SAARC trade is still remained
at low, which was among the major
causes
of
low
intra-regional
connectivity. Some recent steps of
34
SAARC members, however, raise the
hope of better regional integration in
the near future. For instance,
Bangladesh is trying to sell seaport
services to Bhutan, India and Nepal,
which would not only generate more
income for the country, but would
also be immensely helpful for
expediting regional trade, business
and investment. The $1 billion soft
loan from India to Bangladesh was
also a significant gesture to improve
transport
infrastructure
of
Bangladesh,
which
would
eventually create a favourable
condition to boost economic
relations among SAARC members.
The SAARC leaders at the 14th
summit in New Delhi, India declared
2010-2020 as the ‘Decade for
Intra-regional Connectivity in South
Asia’. The 17th summit in Addu, the
Maldives called for ‘Building
Bridges’, and the latest 18th summit
in Kathmandu, Nepal was themed
on
‘Connectivity
for
Shared
Prosperity’.
At the Nepal summit, SAARC
leaders reiterated that better
connectivity including highways,
bridges, communications, power
grids, information ways, greater
exchanges and improved visa
regimes and most important
mental
connectivity
are
prerequisites to stronger regional
integration for sustainable growth.
Despite the realisation and the
efforts to some extent, South Asia
still remains the least integrated
region in the world.
For establishing greater connectivity
in SAARC region, experts suggested
on many occasions that the member
countries should solve their bilateral
issues, promote intra-regional trade
and make efficient use of private
resources available. An action plan
with a realistic timeframe for
completion of CBI should also be set
to speed up the connectivity process.
Besides, the SAARC leaders should
think about the prospect and the
benefit of better connectivity to take
the regional connectivity to the level
that former Indian prime minister Dr
Manmohan Singh once thought of: ‘I
dream of a day … one can have
breakfast in Amritsar, lunch in
Lahore and dinner in Kabul.’ It was
not only Dr Manmohan, over 100
years ago Lord Curzon too dreamt of
a route connecting Bangladesh with
Myanmar and China.
January 2015
ICE BusinessTimes
SHARE MARKET
INVESTORS’
CONFIDENCE YET
TO BE RESTORED
30 companies raised
over Tk. 4000 crore
in the past year
By Munir Hossain
S
ICE BusinessTimes
January 2015
Some 30 companies raised funds
amounting to Tk. 4031 crore in
2014, out of which 21 companies
took Tk. 2708 crore through Initial
Public Offerings (IPOs) and 9
companies took Tk. 1323 crore by
acquiring rights shares. All of it
came from the general (small)
investors, who could not reap any
benefits out of it.
The investors had expected an active
secondary bond market, but that
failed in all aspects. Most of the
indexes in the market were much
below the potential. Even though the
demutualisation process at the stock
exchange was complete, the Financial
Reporting Act has not been enacted
yet. Investors have not responded
well to the Tk. 900 crore financing
scheme. Experts say the incentives
and initiatives that were planned by
the regulatory body have not fared
well among the investors. But they
have
forewarned
Bangladesh
Securities
and
Exchanges
Commission (BSEC) for tackling any
future share manipulations.
Supply in Shares
Out of the Tk. 4023 crore taken from
IPOs and rights shares, premium
was worth Tk. 1944 crore. But in
2013 an aggregate amount of Tk.
4986 crore was raised from the
investors. This means a drop in
issuance of share in value by Tk.
963 crore.
35
SHARE MARKET
Rights Share
Nine companies took Tk. 1323 crore
through rights shares in 2014.
Premium consisted of Tk. 717 crore
and the remaining Tk. 606 crore
came from the share market. The
annual revenue from the share
market in 2013 was Tk. 1337 crore,
up by Tk. 14 crore.
IPO
Thirty companies raised over Tk.
4031 crore in 2014, out of which 21
companies took Tk. 2708 crore
through Initial Public Offerings
(IPO). Premium included was Tk.
1227 crore and remaining Tk. 1480
crore from the market. In 2013, eight
companies issued rights shares
worth Tk. 180 crore, meaning an
increase of Tk. 2508 crore in the
outgoing year.
Foreign Investment
Foreigners invested Tk. 5,600 crore
in the share market in 2014, out of
which Tk. 3996 crore was used only
for purchasing shares and selling
involved Tk. 1604 crore. In 2013
they had invested about Tk. 3361
crore in the market, so, foreign
investment here showed a rise.
Bank Loan Repayment
The newly enlisted companies
repaid most of their bank loans in
2014, but had also placed the rest of
the burden on the general investors.
Allegations of Price
Manipulation
Even though company shares soared
during their initial period, they
dipped soon afterwards. A class of
investors, as alleged, systematically
took money from such IPOs. A
newly-enlisted company witnessed
their share price rates skyrocketing,
but the rate dropped by the second
and third day. The prime objective of
this class is to pocket the investors’
money.
Financial Reporting Act
Even though it was approved at the
cabinet meeting, the financial
reporting act has not yet been
rubberstamped by parliament. The
proposed law is aimed at checking
fraudulent practice in preparing
balance sheet of companies and
ensuring transparency in auditing.
Demutualisation
Capital Market
Demutualisation was an initiative
taken to remove ownership from
stock exchange management. A
13-member board has already been
formed, out of which 7 independent
directors have been selected. 40% of
those directors are in management
level.
Index
Refinancing
As of December 24, the market
capitalisation in Dhaka Stock
Exchange stood at Tk. 3.25 trillion,
compared to Tk. 2.64 trillion in 2013.
But if 2014’s new addition shares are
removed, the market capitalisation
would go down further.
The DSE Index stood at 4930 points
at the end of the year, but it was
4266 points as of December 30
2013, indicating a rise. But if new
companies enlisted in 2014 are
removed, the market index would
show a decline even more than the
2013 level.
36
The investors
had expected
an active
secondary
bond market,
but that failed
in all aspects.
Most of the
indexes in the
market were
much below
the potential
Bangladesh Bank had approved of
arranging a 3-year-long refinancing
scheme for those affected by the
share market slumps and crashes.
Though Tk. 600 crore has already
been
raised
through
two
installments, investors’ reaction to
this has not been favourable so far.
Experts’ Views
AB Mirza Azizul Islam, former
finance adviser to the Caretaker
Government, said that most of the
indexes in 2014 had been low, and
DSE had been static. ‘Due to the lack
of investors’ confidence, the market
regeneration has not been possible,’
he said. He advised the BSEC to play
a more active role in this regard.
Investors must be convinced that
price manipulation will not ruin
their investment prospects. Prof. Abu
Ahmed, a market expert, blamed the
political environment for this inertia.
Dr. Baki Khalily echoed similar
sentiments and also expressed
concern over a timeframe for
recovery in investors’ confidence.
Translated from Bangla by Wafiur Rahman
January 2015
ICE BusinessTimes
MONEY MATTERS
FLASHPOINT
Russia: Facing economic fallouts
of political actions
An IBT Desk Report
F
Freefall is the word that the international media have widely
used to report the latest Russian currency crisis which saw
Rouble plunging more than a quarter to a new low of 80 per US
dollar, a new all-time low against the greenback. The crisis has
been attributed to the Western sanctions against Russia over the
Ukraine issue and drastic fall in the price of oil, major source of
revenue earning of Moscow.
The country’s central bank reportedly increased interest rates
sharply, but instead of calming the market the hike was seen as a
sign of desperation. It reckons that GDP could fall by 5% in 2015.
Inflation is currently at 10% but is expected to accelerate rapidly.
Russians are panic-buying; banks are running out of dollars.
38
January 2015
ICE BusinessTimes
MONEY MATTERS
The meltdown of the ruble is said to
be endangering the mantra of
stability around which President
Vladimir Putin has based his rule.
While his approval rating is near an
all-time high on the back of his
stance over Ukraine, the currency
crisis risks eroding it and
undermining his authority.
The head of Russia’s central bank
has warned Russians that they
should get used to a new way of life,
as the country’s embattled currency
continued to plummet. ‘We have to
learn to live in a different zone, to
orient ourselves more towards our
own sources of financing, and to
give
a
chance
to
import
substitution,’ said Elvira Nabiullina,
the chair of the central bank. She
said the interest rate decision had
been taken to stem the negative
effects of the falling Rouble.
However, the higher interest rate
will crush lending to households
ICE BusinessTimes
January 2015
and businesses and deepen Russia’s
looming recession, according to Neil
Shearing, chief emerging-markets
economist at London-based Capital
Economics Ltd.
London-based The Economist has
tried to explain the reasons of the
Russian currency crisis. ‘The
problems were long in the making.
Russia is highly dependent on oil
revenues (hydrocarbons contribute
over half the federal budget and
two-thirds of exports) and over the
past decade it has failed to diversify
its economy. It is horribly corrupt,
has weak institutions and no real
property rights. The Kremlin
distributes oil money via state
banks to firms and projects which it
selects on the basis of their political
importance and their pro-Putin
stance, rather than trusting the
market to allocate capital to the
most efficient firms.’
Putin took over Russian presidency
from an ailing Boris Yeltsin in 1999
with pledges to banish the chaos
that characterised his nation’s
post-communist
transition,
including the government’s 1998
devaluation and default. While he
oversaw economic growth and wage
increases in all but one of his years
as leader, the collapse in oil prices
coupled with US and European
sanctions present him with the
biggest challenge of his presidency.
An opinionated piece, carried by
Reuters, said the year ahead could
see the outbreak of the third
Chechen war, which, in turn, could
be the death knell of the Russian
Federation in its current borders.By
proclaiming ethnicity and religion as
the basis for Russian statehood and
aggression against its neighbors,
Putin is inadvertently stoking the
forces of secessionism in those parts
of Russia that are historically and
culturally Islamic.
39
GLOBAL ECONOMY
GLOBAL TRADE
AND ECONOMY
Oil price plunge, growth on divergent path–
uncertainties loom in 2015, projecting mega trends,
and short-term cautionary notes also galore
An IBT Desk Report
The drastic fall in oil
price at the later part of
2014 has jerked the entire
global business landscape
given the varying impacts of
petroleum products on trade
and economic activities on
different countries.The price of
a barrel of Brent crude has
almost halved from $115 in the
summer to around $60till writing
of this report.The International
Energy Agency (IEA) has predicted
that the demand for oil next year
would be lower than expected in view
of global social instability and
potential for financial defaults in
producers such as Russia.
40
January 2015
ICE BusinessTimes
GLOBAL ECONOMY
However, the falling oil price may be
a boon for the emerging Asian
economies and result in tax cut
which is likely to boost global
consumption and profits for the
export-oriented manufacturers. The
decrease in oil price transfers to
consumer pockets: The International
Monetary Fund (IMF) estimates that
every 10% drop in the price of oil
potentially results in a 0.2% boost to
global GDP. Another way of looking
at it: A $40 fall in oil prices
represents a shift of approximately
$1.3 trillion, 2% of world gross
output, from oil producers to global
consumers.China,
India,
South
Korea and Taiwan account for more
than 55% of the MSCI Emerging
Markets Index.
In the coming year, writes
Mohammed El-Erian, ‘divergence’
will be a major global economic
theme, applying to economic trends,
policies, and performance. As the
year progresses, these divergences
will become increasingly difficult to
reconcile, leaving policymakers with
a choice: overcome the obstacles
that have so far impeded effective
action, or risk allowing their
economies to be destabilised.
The multi-speed global economy is
expected to be dominated by four
groups of countries. The first, led by
the United States, will experience
continued improvement in economic
performance. The second one, led by
China, will stabilise at lower growth
rates
than
recent
historical
averages, while continuing to
mature structurally. The third group,
led by Europe, will struggle, as
continued economic stagnation
fuels
social
and
political
disenchantment in some countries
and complicates regional policy
decisions. The final group comprises
the “wild card” countries, whose
size
and
connectivity
have
important systemic implications.
The most notable example is Russia.
Brazil is the other notable wild card.
Meanwhile, the current global
supply chain provides one possible
explanation to a puzzle that is
troubling
policymakers:
why
ICE BusinessTimes
January 2015
international trade has been
growing no faster than global GDP
in the past few years. Having soared
from 40% of the world’s GDP in 1990
to a peak of 61% in 2011, trade has
fallen back slightly to 60%, the same
level
as
in
2008.
Cristina
Constantinescu and Michele Ruta of
the IMF and Aaditya Mattoo of the
World Bank argue that the
slowdown in trade relative to GDP
reflects the end of a rapid evolution
of supply chains that yielded big
gains in productivity.
This was made possible by the
removal of trade barriers that
followed the completion of the
Uruguay Round in 1994 and the
creation of the World Trade
Organisation (WTO), plus the
integration into the world economy
of China and the former Soviet bloc.
In the absence of further trade deals
or more big countries opening up,
the evolution has slowed, causing a
lasting slowdown in trade.
Global mega trends
Price Water House has come up with
projections of a few mega-trends
following
survey
among
stakeholders.
On current trends, the aggregate
purchasing power of the ‘E7’
emerging economies – Brazil, China,
India, Indonesia, Mexico, Russia
and Turkey – will overtake that of
the G7 by 2030. By 2015, Asia
Pacific will have a larger middle
class than Europe and North
America combined. And the global
emerging middle class will represent
an annual market of some US$6
trillion by 2021. Such trends and
tipping-points mean the traditional
way of classifying economies is
becoming increasingly irrelevant.
PricewaterhouseCoopers
believes
four features will become more
prominent in the global economy.
They are:
Emerging markets will challenge
developed
economies
in
the
production of high-end consumer
durables.
Today’s ‘F7’ frontier markets –
Bangladesh, Colombia, Morocco,
Nigeria, Peru, Philippines and
Vietnam – will become tomorrow’s
growth markets.
An expanding pool of highly skilled
talent will fuel this emergence, with
people from emerging markets
increasingly
leading
global
multinationals.
Developed countries will benefit
from
‘re-shoring’
as
wage
differentials close.
By 2025, the global population will
increase another billion to reach
about 8 billion, with the over-65s
the fastest-growing group. But there
will be sharp regional variations:
Africa’s population is projected to
double by 2050, while Europe’s is
expected to shrink.While these
demographic changes bring risks for
businesses that fail to respond
adequately, they also bring big
opportunities for forward-looking
organisations. And with women in
the G7 countries already controlling
two thirds of the household budget,
the wage gap with men narrowing,
and an estimated 865 million
women set to enter the economic
mainstream in the coming decade,
women’s purchasing power will
continue to rise.
Technology is one of the biggest
disrupting
forces
in
their
organisations. One aspect is that the
time it takes to go from
breakthrough
technology
to
mass-market
application
is
collapsing. In the US, it took the
telephone 76 years to reach half the
population. The smartphone did it in
under10 years.The price of new
technologies is falling equally
rapidly: since 2001, the cost of DNA
sequencing per genome has plunged
from US$96m to less than
US$6,000.
The global rise of cities has been
unprecedented. In 1800, 2% of the
world’s population lived in cities.
Now it’s 50%. Every week, some 1.5
million people join the urban
population, through a combination
of
migration
and
childbirth.Inevitably, this rapid
expansion
is
putting
cities’
infrastructure, environment and
41
GLOBAL ECONOMY
social fabric under pressure. Cities
occupy 0.5% of the world’s surface,
but consume 75% of its resources.
Rapid urbanisation brings major
implications for businesses as they
refocus their offerings, marketing
and distribution towards an
increasingly urban customer base
with
distinct
needs
and
consumption habits. And they must
be alert to new opportunities arising
from lifestyles shaped by rising
population density and readier
access to resources.
The worst-case
scenarios in 2015
There are risks and concerns around
the world. Based on reactions from
foreign policy analysts, military
experts,
economists
and
investors,Bloomberg has prepared a
list of the worst-case scenarios,
which it called ‘A Pessimist’s Guide
to the World in 2015’ as can be
summed up in the following
paragraphs:
* Violence from Syria spills over
into Lebanon, Jordan, Turkey and
beyond after Islamic State and
42
the Assad regime defeat the last
vestiges
of
the
moderate
opposition.
* A third Palestinian uprising
against Israel breaks out after the
March elections. It turns into a
violent
struggle
involving
increasingly
fundamentalist
Palestinian and Israeli fringes.
Militants
from
neighboring
countries flock to the fray.
* Iran, failing to reach agreement
with world powers on limiting its
nuclear program, pushes through
with development of a nuclear
weapon. Israel moves to stop
Iran’s efforts, setting off a
regional war.
* Putin-backed rebels, supported by
Russian forces, drive further west
in Ukraine to create a land
corridor to join up with Crimea.
That triggers deeper economic
sanctions from the U.S. and the
European Union and forces them
to accelerate military support to
the government.
* Confrontations
break
out
between Chinese navy vessels
and fishermen in South China
Sea; Chinese and Japanese fighter
jets engage in a dogfight over the
disputed
Senkaku/Daioyu
Islands. The escalation brings in
allies, inflaming nationalistic
tensions.
* Taliban
militants
in
the
mountainous Pashtun-dominated
regions of Afghanistan and
Pakistan link up with Islamic
State. They make progress in
their quest to take power in Kabul
and Islamabad as the U.S.
reduces its troop presence.
* A terrorist attack occurs on the
scale of Mumbai in 2008, when
luxury hotels and a train station
were
attacked
by
a
Pakistan-based militant group.
Prime Minister Narendra Modi’s
Hindu nationalist BJP (Bharatiya
Janata Party) is pressured into a
harsh response, triggering a crisis
between
the
nuclear-armed
neighbors.
* Islamic State militants ignite a
full-blown sectarian war, pitting
the Shiite Muslim majority against
the Sunni minority. This disrupts
the country’s oil production and
draws U.S. and regional powers
into the conflict.
January 2015
ICE BusinessTimes
ACADEMIA
BREAKING
BARRIERS
Not only are academic/experience gaps
filled in Battle of Minds, but moreover it
is a platform for developing future
leaders of tomorrow
By Wafiur Rahman
Photo Titu Zakaria
W
44
What started off with a road-show last October in Dhaka University’s
prestigious Institute of Business Administration, concluded with a grand
finale on December 8 that befitted the grandeur of this year’s Battle of
Minds, British American Tobacco Bangladesh’s flagship talent recruitment
programme.
Holding road-shows at 8 universities, BAT Bangladesh brought out their
Managing Director, Head of HR, Head of Supply Chain and BAT Bangladesh
managers who were respective university alumni (and BoM alumni in some
cases) and had them tell their stories about their career in BAT Bangladesh
so far. Motivation level for the audience sky-rocketed, as had been the case
in all the universities they had visited. ‘I want to take part in this year’s
Battle of Minds,’ said an undergraduate student of IBA, ‘Most of my senior
classmates, especially the talented ones, have participated in the
competition in the previous years,’ he added. ‘I want to prove my mettle and
stand beside them as one of the successful participants; I know I have what
it takes to win.’
January 2015
ICE BusinessTimes
ACADEMIA
BoM 2014 Exposition
Proud BUETians won first runners’ up
Team IUT impressed as always, winning second runners’ up
ICE BusinessTimes
January 2015
And so began the journey of this year’s Battle of Minds.
What made the experience unique this time was not
merely one reason, but multiple. ‘Battle of Minds has
crossed unique heights this year, with over 2200
applications,’ said Adrita Datta, Talent Manager at BAT
Bangladesh. ‘What makes Battle of Minds unique is
that it recruits future leaders, as the best of the best in
Bangladesh encounter real life business challenges and
delve into plausible solutions for overcoming them,’
she said, ‘but this year, we thought of organising road
shows, where we would have our department and top
management heads speak their minds in front of the
ambitious students. And the response have been
tremendous.’
This emotion was echoed by Rumana Rahman, Head of
HR, in her opening speech of the Grand Finale. ‘Battle
of Minds has not only evolved, but it has evolved in
terms of its magnitude,’ she said, ‘It is not only a
competition for graduates, but a platform for
showcasing their talents and letting them have a taste
of real life work experience. It is because of our effort
that not only business students are applying for Battle
of Minds, but also students from the engineering
background. This year we have had over 2200
applications, which show how students feel about this
competition. Here at BAT Bangladesh we not only
develop people through coaching and training, but
make them go into the real depth of working at
different roles inside the company. This competition
brings out the best of mind and might,’ she added.
45
ACADEMIA
The Main Event
The judges had a tough task in their
hands, and they did not falter
46
The judges for this year were S.M.
Khaled, Head of Supply Chain, Rumana
Rahman, Head of HR and Shahed
Zubair, Head of Corporate and
Regulatory Affairs. They were given the
arduous task of disseminating business
plans that the teams had chalked up in
order to give George’s Café a lifestyle
brand makeover. From marketing
strategies, financial expenditure to
SWOT analyses, the contestants had to
figure out ways on how to boost
revenues and brand exposure for
American expatriate chef George
Smith’s beloved creation.
The teams were in sync with their
respective team member, which was
deduced through their immaculate
presentation patterns. They were in
unison regarding their concept, given
January 2015
ICE BusinessTimes
ACADEMIA
the manner in which they presented
and defended in front of the judges.
The judges, given the task of
dissecting
any
and
every
questionable intrinsic details, had a
field day in taking the teams to the
extent of their knowledge bases.
Various ideas were pitched in front
of the judges. From changing the
entire theme and concept of
George’s Café, to possible expansion
plans and modification of target
group identification, they pitched
every possible concept and gave it
their all into the ideas. The passion
and zeal with which they spoke
were awe-inspiring, and more
importantly, the majority of the
ideas were practical. There were no
audacious or non-feasible ideas
brought to the table. That is
testament to the quality benchmark
that BAT Bangladesh maintained
while selecting the BoM finalists,
something not found in other
business competitions.
What I surmised from their
presentations is that they were
aware about the implications of the
changes they were pitching . They
were aware that they could not go
overboard with their finances, as
drastic changes are neither practical
nor desirable in their given scenario.
That is why I believe they played to
each of their strengths and had their
bases covered with what they were
good at. Amitabh Roy, one of the
finalists from IBA, said that they
had every detail scrutinised before
they were sure about them. ‘Since
we had not worked together as a
team before, we were unsure about
our ability to perform as a unit. But
as soon as we started working, we
critically analysed each other’s
points and supported each other
whenever it was necessary,’ he said.
‘I was really impressed with these
students today,’ said George Smith,
chef and owner of his namesake
café. ‘Some of their ideas were not
what I would call feasible, but some
of them were really worthy of
trying. This competition will help
them to understand how to develop
and improve upon established
business institutions and also to
work with challenges that they
must learn to overcome under any
given circumstances. That is
something that there is no running
away from.’
Memorable experiences on a memorable night, everyone went home happy
ICE BusinessTimes
January 2015
47
ACADEMIA
Rumana Rahman, Head of HR at BAT Bangladesh, gave an
exposition on the greatness of Battle of Minds
Every contestant tried their best to be objective and
immaculate in their presentation
Take-Home from BoM
Shehzad Munim, Managing Director of BAT Bangladesh,
dished out valuable life and professional advice to the
contestants
48
But as the presentations came to a closure, the
students were engulfed with a sense of sadness, as
their experience of working in a business competition,
that too in a reputed multinational company, came to
an end. ‘Battle of Minds is easily one of the best
business competitions that I have been a part of,’ said
Nahian Rochi, another proud IBA finalist, ‘every single
task of the competition challenged my capabilities and
analytical strength.’
‘Every round had its own surprise factor,’ said Farhan
Khaled, another member of team IBA. ‘From the focus
group discussion round to the final presentation
round, each experience was memorable. But the most
enjoyable part was the preparation time for the final
round. We got the opportunity to meet the managers of
BAT Bangladesh, who were kind enough to groom us
for the final round. I believe a secondary objective of
this was to provide us with an insight of the corporate
world. In the end, I would mostly remember Battle of
Minds for the warmth and affection that I received
from the people at BAT Bangladesh, which helped me
to focus on my competition objectives.’
January 2015
ICE BusinessTimes
ACADEMIA
The Grand Awaiting!
Once the presentations were complete, the
judges were given time to accumulate the
marks they had given to each team and add
them up with the marks given for the report
plans each of the team had created.
The chairman of BAT Bangladesh, Golam
Mainuddin and the Board of Directors were
present in the occasion – namely Industries
secretary M Mosharraf Hossain Bhuiyan,
former Defense secretary Kamrul Hasan,
former Liberation War Affairs secretary K.H.
Masud Suddiqui and Managing Director of
Investment Corporation of Bangladesh M
Fayekuzzaman.
This gave way for some more inspirational
speeches for those in the audience and the
student body present in the finale. ‘It had
been a refreshing privilege to watch the
students present their cases before the
judges,’ said Golam Mainuddin. It is true.
They had given it their best shots, and more.
‘Their enthusiasm brought life into the
competition, it was a real delight. All the
finalists have performed well. As with any
other competition, judges will declare the
ultimate winners – but it is the experience
that will make all of them winners in their
respective lives in future. As Battle of Minds
is BAT Bangladesh’s flagship talent
recruitment programme, it is a classic
business competition at heart - it bridges
academic teachings with corporate exposure.
It is made different with real life business
challenges. I am proud to be part of such a
pioneering endeavour by BAT Bangladesh,
which stepped in its 11th year.’
Shehzad Munim, Managing Director at BAT
Bangladesh, had equally inspiring words of
wisdom and appraisal for both Battle of
Minds and its contestants. ‘BAT Bangladesh
is way ahead in the game in terms of talent
recruitment,’ he said, ‘Our managers go on to
have international careers, which tells us
that we as Bangladeshis have to capability to
take on the global stage. Similarly, Battle of
Minds grew significantly in 11 years. From a
humble beginning, it is now the largest talent
platform, with everybody supporting us. I
would ask the students and the future leaders
to be confident in their abilities, as well as
their team working abilities, as it is the key to
success. You must learn to face the future
with an open mind, otherwise the world will
just run past you, without waiting for you to
get on track,’ he advised.
ICE BusinessTimes
January 2015
Conviction was something all the contestants worked on, in order to impress the judges
BAT Bangladesh’s Board of Directors along with Rumana
Rahman, about to read out the names of this year’s victors
Golam Mainuddin, Chairman of BAT Bangladesh,
had words of praise and wisdom for those
present in the audience
49
ACADEMIA
Moment of Truth
‘I am proud to be part of
such a pioneering
endeavour by BAT
Bangladesh, which
stepped in its 11th year’
Golam Mainuddin
Chairman, BAT Bangladesh
‘Our boys have shown
that they have what it
takes to be with the
best of the lot and
fight it out’
Dr. Md. Shahid Ullah
Professor and Head of EEE Department at IUT
As the name of the winning
team was in the offing, there
was no doubt in the audience’s
mind that this was a close
contest. Islamic University of
Technology
(IUT)
was
announced second runners’ up
and Bangladesh University of
Engineering and Technology
(BUET) was declared runner’s
up for this year’s competition.
As the long pauses were
deafened by pulsating heart
beats (as sound effects,) the
suspense was more than
excruciating for the audience to
endure.
It all came to an end when
Golam Mainuddin announced
IBA as the victors of this year’s
Battle of Minds. The team from
IBA had shown that possessing
a clear concept and immaculate
preparation had taken them
miles ahead of the pack, hence
their accolade and getting the
distinction of first prize
winners.
Team IBA with their coveted first prize trophy
50
January 2015
ICE BusinessTimes
ACADEMIA
‘Battle of Minds
provided us the
grandest stage
to show our
potential and it
required us to
use every bit of
practical
knowledge we
had acquired all
these years to
win the
competition’
Reactions Galore
After IBA was declared the
winners, it occurred to me that this
was not only their success, but
also reflected on the hard work of
their esteemed faculties. ‘I was
secretly hoping that our team
would win,’ said Prof. Iqbal
Ahmad, Professor and Director at
IBA, ‘but more importantly, I was
also hoping that they would be
objective, concise and prudent in
their
business
plan
and
presentation, to show that they
were subjected to an extensive
knowledge-based curriculum.’
‘I am proud of my students and
congratulate them on winning this
year’s Battle of Minds,’ said
Homayara
Latifa
Ahmed,
Assistant
Professor
and
Chairperson of IBA’s Career Center.
‘They have successfully and
effectively bridged the gap
between academic and practical
knowledge/business
acumen,
proving that they are our future
leaders. They have what it takes to
sustain in the real world of
business.’
The relentless team behind the scenes that made this year’s Battle of Minds successful
ICE BusinessTimes
January 2015
Dr. Md. Shahid Ullah, Professor
and Head of EEE Department at
IUT, was all praises for his team.
‘Our boys have shown that they
have what it takes to be with the
best of the lot and fight it out,’ he
said. ‘Teams from IUT have
performed exceptionally well every
year, and this year was no
different. We are slowly filling the
gaps
that
our
engineering
students
feel
when
facing
business dilemmas.’
Keys to Success
‘Battle of Minds provided us the
grandest stage to show our
potential and it required us to use
every bit of practical knowledge
we had acquired all these years to
win the competition,’ said
Amitabh Roy, another member of
IBA’s winning team. ‘We were
given a real life café to brand and
we could literally visualize our
solutions
and
ideas.
The
competition
was
a
great
experience for us not only
because of the competition itself,
but also for the courtesy and
hospitality of the organisers.
Throughout the five days, we
never
felt
like
just
the
participants of a competition, we
were blessed with the warmth
and cooperation of the BAT
Bangladesh managers. Battle of
Minds would always therefore
have a place in my heart for the
exciting journey it had provided
us.’
‘Stress and competition helps
people to rise to the occasion,
which we realised on our journey
to success,’ said Wahida Mashrura
Shukh, another winning member.
‘I take back with me the practical
lessons of life. I learned to work
under pressure, relentlessly, in
uncertainty and to work with a
team for a team. Winning was
certainly a most pleasant aspect
but the battle before it, was the
real takeaway,’ she said. This
year’s Battle of Minds was a
journey that none of the final
contestants will ever forget.
51
GSR
EXTENSION OF CSR,
GLOBALISATION
OF BUSINESS
GSR Dhaka conference annotates on
shareholders’ value and social responsibility
By Ahmed Noushad
B
52
Businesses have hardly any scope for focussing only on its own set priorities at the age of
globalisation. Corporate social responsibility (CSR), the catchword of recent business pursuits, is
set to embrace wider meanings and application. As businesses grow and go international, their
responsibility alongside opportunities and challenges increases. So, Global Social Responsibility
is the term that Bangladeshi businesses need to work on, in the days to come.
Bangladesh has experienced economic progress with a growth of approximately 6% or so, thanks
to the rise in investments in various industrial sectors and relatively low labour cost for industrial
activities. Textiles, agro-businesses, construction, and service sectors are amongst the few that
were impacted by the development. But there are other challenges that need addressing, like
energy shortage, water contamination. waste and social protection issues. These factors could
possibly undermine the growth and even cause social and environmental harms.
January 2015
ICE BusinessTimes
Recent tragedies in
the sector have
made it a lot harder
to do business, and
compliance issues
are weighing hard.
Even then, this
sector has been
growing, slowly
though
In order to respond to these
challenges, Bangladesh German
Chamber of Commerce and Industry
(BGCCI), in collaboration with
others, organised the 3rd Global
Social Responsibility Conference in
Dhaka on December 11. It aimed at
fostering a better understanding of
social responsibility among the
participants.
The
conference
highlighted
the
benefits
of
addressing
environmental
and
social impacts with innovative and
responsible solutions.
Bangladesh’s leather industry and
readymade garment sector were the
main subjects of discussion.
The country’s leather industry is
projected to export $5 billion worth
of finished leather goods in a span
of four years; this is subject to
diversification of products and value
addition. It recorded an export worth
$1.3 billion in the fiscal year
2013-2014 with a set target of $1.5
billion in the year 2014-15. Once
these improvements and the
mindset to revolutionise the
industry
is
incorporated,
an
estimate of 200,000 jobs is expected
to be available.
The projection of $5 billion is based
on the assumption that China’s Cost
of
Doing
Business
rose.
Bangladesh’s leather industry has
the potential to meet certain portion
of the global demand, owing to its
vast
source
of
raw-hides,
competitive cost base, massive
workforce, duty-free access, growing
middle class, and most importantly
the shift of businesses from China to
Bangladesh.
Despite the potentials, there are
environmental and social issues
that need attention. Processing of
leather requires immense water and
use of toxic chemicals, which are
and unfortunately has to be dumped
at rivers and other water bodies due
to lack of proper waste disposal
systems. Adequate training of
workers handling these chemicals is
also at disarray. Besides these,
current tax policies and regulations
regarding import of raw-materials
essential for processing leather are
devolving for the industry.
Concerning the RMG sector, an
earlier target of $50 billion worth of
RMG export is not impossible, also
thanks to the shift in some business
from China to Bangladesh. However,
the challenges of this industry still
needs addressing, and with effective
measures. Recent tragedies in the
sector have made it a lot harder to
do business, and compliance issues
are weighing hard. Even then, this
sector has been growing, slowly
though. The compliance issues and
a dream of making the RMG a $50
billion industry by 2021 was a key
recommendation. Besides workers’
general safety issues and retirement
plans for the workers at RMG related
industries were also put to
attention.
In organising the conference, BGCCI
was joined by Deutsche Gesellschaft
für Internationale Zusammenarbeit
(GIZ) GmbH, which works on behalf
of the German Federal Ministry for
Economic
Cooperation
and
Development (BMZ), the Embassy of
the Kingdom of the Netherlands, the
German
Embassy
and
TUV
Rhineland.
PHOTO FEATURE
ZING IN
TASTE, BUT
LOW ON
EXPOSURE
Bangladesh’s salt industry
needs a financial boost for
an economic zing
Photos by Din M Shibly
Text by Wafiur Rahman
54
January 2015
ICE BusinessTimes
PHOTO FEATURE
Salt industry is an industry for producing salt
from saline water of the sea in the coastal areas
of Bangladesh especially in Chittagong and
Cox’s Bazar areas. Salt is produced seasonally
from December to mid-May. Recently salt
cultivation has also begun in the coastal belts of
Khulna and Satkhira.
Traditionally, salt was manufactured by
vaporizing seawater by fire heat or sunlight.
From 2000-2001 salt was produced in a
different way known popularly called polythene
process, in which salt production per acre is
much higher than old method. In traditional
method, per acre production of was 17.25 m
ton, while in the new method per acre
production of salt has been 21 m ton. and
furthermore, production per acre and the quality
of salt has been very standard. Moreover the
market price of this salt produced in new
method is double.
Salt production is an ancient industry begun in
the coastal zones of Bangladesh. This industry
was developed by people traditionally
specialized in it and was known as Mulunghee.
They used to produce salt by evaporating water
by boiling the saltwater. The salt production
field has been known as Tofol. During the
Mughal period, this sub-sector was
administered by two government departments
known as Jaigir Mahal and Nimak Ewaz Mahal.
There were nearly 39 salt processing and
ICE BusinessTimes
January 2015
55
PHOTO FEATURE
56
January 2015
ICE BusinessTimes
PHOTO FEATURE
production centres under the three chaklas like Nizampur,
Jugdia and Baharchhara. In the 16th century, the salt
manufacturing was a source of income for the government. The
government had a monopoly control over salt production and
trading. The salt traders used to make advances called dadni to
salt producers. The salt industry got a new direction when the
British East India Company acquired Chittagong in 1760 as one
of the three ceded districts from the Nawab. The company made
Chittagong a major source of income for itself by monopolising
salt production in Chittagong. The mulunghees, who were
independent producers before, were now reduced to salt
labourers. Salt production as a monopoly of the government
continued. After 1947, the salt sector was revitalised, but
imposition of heavy custom duty and tax on salt industries in
order to give advantage to salt imported from West Pakistan
became again a barrier to its normal growth.
East Pakistan Small and Cottage Industries Corporation was
established in 1957. From its inception, it began salt production
with its own manpower since 1960. According to a survey
conducted by BSCIC in 1964 there were 16,541 salt growing
units over 11,769 acres of land across the coastline of
Chittagong, Noakhali, Barisal and Khulna. Annual production of
those units engaged 50854 workers generating an annual
income of 20 million taka. In 1990, BSCIC with an estimated
cost of 377 million taka took up a project named Special Product
Development Programme. It included three components of which
salt production was one. There was also an allocation of 118.9
million taka for the development of salt sub-project, which aimed
at achieving self-sufficiency in salt production, (b) improving
quality of salt, and to extend technical knowledge of salt
production. The project was implemented between1990 and June
2000 and continued as a revised project from 1990 to 2005.
In 2006-2007 the project was included in the revenue budget
with its centres at 7 thanas of Cox’s bazar district: Cox’s Bazar
Sadar, Chokoria, Pekua, Kutubdia, Teknaf, Maheshkhali, Ramu
and Banshkhali thana of Chittagong district. The centres are:
ICE BusinessTimes
January 2015
57
PHOTO FEATURE
Uttar Nolvilla, Gorokgata,
Matarbari, Gomatoli, Choufaldandi,
Darbeshkata, Dulhazara, Fulchhari,
Purba Borogona, Sorol and Teknaf.
Under this programme, salt
production, market price and
information collection including
movement, imparting training to
salt farmers and research works
were done. There are 4 production
cum display centres at
Lemoshikhali, Choufaldandqi,
58
Matarbari and Baldarchar. The
programme plays an important role
to keep the price of salt stable and
ensures supply as per demand. At
present 43,553 cultivators are
engaged in 67,751 acres of land in
Cox’s Bazar and Chittagong district
to produce salt in solar method. Salt
is contributing about Tk. 120
million in the national economy
every year. One to 1.5 million people
of coastal belt depends
economically and socially on salt
cultivation. Production of salt in
solar method depends completely on
nature. If the climate is conducive
the production target can be
achieved. In 2009-10, salt
production was 1.7 metric tonnes
against the target of 1.33 tones.
With the increase of population,
cattle heads, and growers of
industries, the demand of salt is
also rising. To meet the growing
January 2015
ICE BusinessTimes
PHOTO FEATURE
demand of salt and to achieve
self-sufficiency in salt production,
BSCIC has extended its salt
production areas to Khulna and
Satkhira through a new project
costing over Tk. 13 million. Under
the project, four experimental salt
training and production centres
were established in Madinabad in
Kaira upazila of Khulna district, Bet
Kashi of Dakop upazila, and
Burigoalini of Shyamnagar upazila,
ICE BusinessTimes
January 2015
and Pratabnagar of Ashasuni
Upazila of Satkhira district. Later
during the period 1992-2002, the
second phase of the Tk. 19 million
project was implemented. The
implementation of the third phase
concluded in 2009 at a cost of over
Tk. 28 million.
Iodised Salt - the project named as
Control of Iodine Deficiency Disorder
was taken as a pilot project on 1989
to eradicate the iodine deficiency.
The government enacted a law on 11
December 1994 to prevent iodine
deficiency diseases. Under this Act,
from 31 June 1995 onward
fortification of all edible salt with
iodine made compulsory and storage
and marketing of non-iodine salt
were prohibited. With cooperation of
UNICEF, 267 iodised salt plants were
set up and each of the factory was
provided with an iodine mixture
machine free of cost.
59
DINING
REDEFINING
INDIAN CUISINE
Tarka brings a breath of fresh air into an
oversaturated Indian cuisine scenario
By Wafiur Rahman
Tarka is the latest addition to the
growing food scene in Banani, in
Dhaka city. The restaurant, opened
on 2 March, is doing quite well.
Tarka is an Indian restaurant that
has tried its best to bring in all the
colours of India. The hand wash
area is absolutely striking; the
basin and tap both are from copper
that gives it a rich Indian look.
Once you enter the restaurant, you
will find yourself in a low-lit terrace
60
with a few rows of benches. The
inside of the restaurant is rather
brightly lit and buzzing with foodies.
There are antique lanterns hung from
the ceiling and beautiful paintings
displayed on the wall. On one side
stands the long open kitchen. So
after you have ordered you can sneak
peek to see what is cooking.
Now that you have finished
appreciating the ambience, it is time
to go through the menu. To those
who are familiar with Indian
cuisine, you will know more or less
what the list might contain. But one
thing you might not know is that
this restaurant is the joint venture
of few friends along with their
mothers. So when it comes to
recipes and cooking skills, be sure
that these come from years of
experience.
Perhaps
their
supervision adds that little extra
thing here.
January 2015
ICE BusinessTimes
DINING
All the food here do have a strong
Indian flavour. Their ‘naans’ in
particular are soft and have great
aroma. For Naans I would
recommend their garlic Naan,
however, they have a Naankulcha
which is Paneer stuffed one that is
new and exciting. Tarka's Chicken
Lajawaab Makhani and Beef Delhi
Night are my favourite dishes to
accompany Naans. Beef Delhi
Nights definitely bring a new
flavour and taste to the Indian
dining scene in Bangladesh. The
dish is a good mix of sweet and
savoury flavours with a subtle sour
taste which makes the dish stand
out loud. Chicken Lajawaab
Makhani is a good looking dish with
lots of thick gravy to complement
the somewhat dry Beef Delhi Night.
Tarka has a range of snacks like
Dosas and Chaats. Particularly, I
would recommend their Paneer
Dosa. The size and filling of the
Dosa is pretty good and the
taste-wise it's delicious. There were
really good recommendations of
their Hyderabadi Biriyani, however,
I haven't tried it yet but seems like a
recommended dish by many.
I found the Tarka special platter to
live up to its name. It has a range of
kebabs, a great fish kebab, prawns
and beef and chicken kebabs as
well. It goes well with Naans and is
more than enough for two people.
ICE BusinessTimes
January 2015
The portions were just right and
offered us an insight into how
traditional Indian spices and styles
of cooking could be kept to make
something delicious. At the end of
the meal, we did not feel stuffed up
or over filled as the food was not too
rich or oily (as Indian food can
sometimes be). The waiters are
friendly and know their menu well.
If you ask them about a dish, they
can tell you what to expect from it.
And perhaps more importantly, their
delivery time is about 15 minutes
and prices are comparatively
reasonable. I could rank it as one of
the best Indian restaurants in town.
For the desserts, there is the Special
Shahi Kulfi and Jafranigulab Jam.
Over all, Tarka has selected items of
popular dishes from many regions
of India. It is truly a journey of
flavours. So next time you crave for
authentic Indian food, you know
where to visit.
House # 62, Road # 10, Block # D,
Banani, Dhaka
Or visit the Facebook page at
w w w. f a c e b o o k . c o m . t a r k a
restaurant
61
PROMOTION
THE BIG
DEAL
Pizza Hut and KFC offers debit and
credit card users of VISA
By Ahmed Noushad
VISA, a name that is more
recognized in this part of the world
as an Icon of Plastic Money, is
getting even bigger with their latest
offer, which was hosted by Pizza
Hut. VISA is offering discount offers
for its card holders at KFC and Pizza
Hut, with 15% savings over combo
meals. This offer is open to both
debit and credit card holders of
VISA; ‘VISA credit and debit card
users can avail of these great offers
on their cards and can get
interesting
discounts on combo
meal at our Pizza Hut & KFC. We
thank VISA for making this possible
for the 3rd time’ – said Akku
62
Chowdhury, Managing Director and
CEO of Transcom Foods Limited, the
franchisee of Pizza Hut and KFC in
Bangladesh.
Under this savings offer Pizza Hut
has bundled the Visa offer combo
meal with : Risotto, Pasta and Pizza
meals for 2 and 4 persons and priced
as less as BDT 1090 for Pizza for 2 Any Medium Pan Pizza from
Favorites line, BBQ chicken wings
and Lemon iced tea/ Pepsi/7up/M
dew/Mirinda. On the other hand KFC
bundled Visa offer combo meal for 1,
2 and 4 persons and price is as less
as BDT 375 for Meal for 1 - 1 Pc Fiery
Grill or HC, Snacker, Mixed Rice,
Regular Coleslaw, Regular Pepsi. The
Visa offer will be available at all 13
KFC and 8 Pizza Hut outlets in
Bangladesh till March 24, 2015.
Mr Akku Chowdhury mentions that
Pizza Hut is hoping for about 10%
rise in their annual sales, ‘we are
confident that the offer will be a
huge success among the Visa
cardholders in Bangladesh’. He is
also projecting that Pizza Hut would
open about four times more
franchises and spread them around
other districts of the country, in the
coming years.
For further information,
please contact:
Transcom Foods Limited
5, Bir Uttam Mir Shawkat Ali Shorok
(South Avenue) Gulshan-1
Dhaka-1212, Bangladesh.
January 2015
ICE BusinessTimes
CORPORATE GROOMING
EXPENSIVE FOR
A REASON
Why men should go for high-end perfumes
Buying expensive perfumes doesn't necessarily ensure you'll
prefer the scent over that of lower-priced fragrances. Some costly
perfumes offer exotic ingredients, however. The quality of some
expensive perfumes may also be better than that of cheap
colognes. The decision of whether to spend a lot of money on
Burberry London
for Men
Creed Aventus
These factors may not be relevant to
everyone who prefers expensive
perfume. Some people buy expensive
perfumes simply for the decorative
bottles they come in. Buying
expensive designer fragrances, or
designer clothing and accessories,
may be a hobby for some. Some
people enjoy collecting expensive
perfumes, just as others collect
porcelain. For collectors of exotic
fragrances, it is worth the price.
Very expensive perfume may be
packaged in a limited-edition bottle.
Many of these expensive perfumes
are bottled in delicate crystal. Some
manufacturers issue a series of
ICE BusinessTimes
January 2015
Gucci Made
To Measure
Mont Blanc
Emblem
collectible bottles. Some bottles may
be made with gold plating, making
the perfume more desirable for
some. Collectors find buying these
high-end perfumes to be a
worthwhile hobby.
Additionally, expensive fragrances
may be custom made for the
discriminating collector. Some
collectors request various custom
bottle designs. It is not uncommon
for celebrities to request custom
designed bottles to reflect their
taste.
Buying
an
expensive
perfume as a unique gift to present
to a special recipient can often be
worth the cost. For special
Versace Pour
Homme
Trussardi
My land
occasions, it may be worth the
money to indulge in a bottle of
costly perfume. For those who find
it impractical to buy very expensive
fragrances, there is an alternative.
A favorite fragrance may be
purchased at a lower cost in a
spray cologne, rather than a
perfume bottle.
The following have been the
best-selling perfumes for men over a
period of time in Perfume World.
Available at 10 branches in
Bangladesh, they have been
preferred by gentlemen, given their
meeting all the attributes for being
the essential perfumes to keep.
63
STARTUP
THE TRIBUTE
GP announces their winner of their
entrepreneurship programme
‘innovation xtreme’
By Ahmed Noushad
W
64
With
over
350
participants
attending the event ‘Innovation
Xtreme (IX)’, GP premiered a
platform where young entrepreneurs
and investors collaborate to share
ideas and business prospects. The
event took place on November 22nd,
at Radisson Hotel, which was and
perhaps
the
biggest
entrepreneurship and startup event
of 2014.
The event generated a crowd with
investors,
experienced
entrepreneurs,
corporate
professionals, students, and both
local and international media to
telecast the potential of innovators
and entrepreneurs birthing in
Bangladesh.
Billionaire
Businessman
from
Nepal, Nirvana Chaudhary gave the
keynote speech and held a workshop
on ‘Billionaire Basics’. Zarif Munir,
MD of Boston Consulting Group gave
a presentation on why now is the
best time to invest in Bangladesh.
Former CEO of Grameenphone and
newly appointed CEO of Uninor,
Vivek
Sood
spoke
about
Telecommunications’ Impact on
Startups and Businesses.
Mustafizur R Khan, founder of
January 2015
ICE BusinessTimes
STARTUP
Startup Dhaka, described Innovation
Xtreme as a ‘One of a kind event’, he
said, ‘Nothing like this has ever
been done before and we are very
happy to hold a sold out event that
validated our vision of technology
enabled businesses in Bangladesh’.
Fayaz Taher, co founder of Startup
Dhaka said ‘ We are here to disrupt
the way business is done in
Bangladesh.
By
bringing
all
stakeholders under the same roof we
have done just that. At IX we have
showcased the brightest, inspired
the early starters, and connected
everyone together’. This is a major
accomplishment and we hope 2015
will be a different year for startups
and tech businesses.
Other
speakers
included
representatives from Golden Gate
Ventures (VC), Fenox (VC), Boston
Consulting Group, Zalora (Fashion
E-commerce site from Malaysia),
MasterCard,
Invest2Innovate
(accelerator), International Finance
Corporation
(IFC),
AlleyWatch
(Media partner from NYC), Jaago
Online School, Augmedix, Solaric,
Payza, Bkash, Magnito Digital, Light
Castle Partners, Gemroc and
Bangladesh Youth Leadership Center
(BYLC) among a number of other
notable organizations.
The central theme of IX 2014 was
‘Innovation
in
Bangladesh’,
highlighting the success stories and
the
opportunities.
The
event
showcased 4 leading ventures,
including 10 handpicked startups
(Biponee, Bongo, Bucket Engineers,
Dam Com, Kokhon, Lidia May,
LightCastle Partners, Paralax-Logic,
Sobji-bazar and ZuumZuum) from
Bangladesh. These 10 startups
presented in front of venture
capitalists and judges in a Mock
Startup Investment Pitching Round.
The main sponsors of the event were
Grameenphone as Title Sponsor and
The EMK Center as Gold Sponsor.
Although
this
event
was
soul-sponsored by Grameen Phone,
its stability was partnered by Magnito
Digital, LightCastle Partners, DES,
American Alumni Association,
ICE BusinessTimes
January 2015
Preneurlab,
G&R,
BASIS
and
Incogmito. Gift sponsors were
Fortuna Bangladesh, IPDC, Ericsson,
DIRD Group, Popular Life Insurance
and IPDC. Media partners were The
Daily Star, Radio Foorti, e27,
Innovation is Everywhere, Alley
Watch, Bamyan Media, and Techjuice.
The three winning
startups were:
ZuumZuum.com
ZuumZuum.com is an eCommerce
platform for lifestyle shoppers
seeking
quality
products
at
competitive prices. They ensure you
have the right products of a brand,
and in a price that is rightful.
ZuumZuum.com is looking forward
to officially launch their own
website by the first of January 2015.
Bongo
The team titled Bongo envisioned an
even better digital picture of
Bangladesh. Their idea was to take
the entire media industry of
Bangladesh in to an archive,
whereby, people around the country
could access important telecasted
events
or
programmes
or
entertainment at any time of a year.
The idea started when the founder
behind Bongo was looking for a
media footage and couldn’t find it.
His disappointment has stirred his
imagination in to creating this
platform, a place where one could
find Bangladeshi media online.
Bongo plans on archiving all the
entertainment
shows
ever
broadcasted, they have even
partnered with several media
channels for sources.
Dam.com.bd
This team which is lead by a young
Japanese team has even a bigger
offer to make for the society,
especially in this confusing market
with buyers of different sect. They
bring forward the most important
information a buyer would want,
that is the ‘actual prize of a product’.
Not only that, they even provide the
best purchasing platform at the
actual price, just as the name
mentions, ‘dam com’ (low price).
65
TECH
IDEAS
GALORE
National Hackathon 2014
promises to deliver socially
responsible apps
By Wafiur Rahman
66
January 2015
ICE BusinessTimes
TECH
A
As many as 1,745 young mobile
application developers got together
at the National Mobile Hackathon
2014 to find solution to 10 social
and national problems. Organised
by the Information and
Communications Technology
Division, the coding fiesta, the
biggest of its kind in the country,
addressed 10 specific local
problems.‘We only see problems in
the social communications media,’
State Minister for ICT Division,
Zunaid Ahmed Palak told the
inaugural ceremony.
O
The Hackathon Know-how
‘One blames the other. We keep
talking about various issues like
traffic congestion, question paper
leakage, corruption. But what is the
solution? Will we only identify the
problems or will we provide
solutions,
too?
The
young
generation will find the solutions to
the various problems of city life in
the hackathon,’ he said.
The Hackathon was organised
under the ICT Division’s National
Mobile Application Development
Awareness and Capacity Building
Programme. MCC Ltd, A2I BASIS,
Symphony, Grameenphone, Robi,
Sol Quest, Google Developer Group,
ICE BusinessTimes
were divided into 340 teams with
each comprising five members
inclusive of both coders and
designers. Forty nine professional
companies also took part in the
competition.
Thirty veteran IT specialists and
programmers
evaluated
the
projects. The winner was awarded
with Tk. 20 lakh of innovation fund
to materialise their project. BD
Ventures Ltd would also provide
them with financial support.
The winners also received several
prizes from Microsoft Mobile,
Symphony,
Robi
and
Grameenphone. Better Stories Ltd
will help them market their product
for a year. The Hackathon started
with a workshop on Vision 2021,
which was conducted by the state
minister. This was followed by a
session on design sprint and paper
prototype, and then the primary
coding. Different technical sessions
were held as well.
QUBEE provided WiFi support at the
event held at Institute of Diploma
Engineers, Bangladesh, and it was
the largest WiFi support for any
event in Bangladesh till date. This
was a massive undertaking on the
part of QUBEE as each auditorium
hosted over 400 people who were all
simultaneously connected on their
devices using the QUBEE WiFi. The
event was a thrilling leap to solve
local issues and bringing public
services to the people’s hand by
innovative solutions through young
tech professionals.
January 2015
Better Stories Ltd, BD Ventures Ltd,
HiFi Public, Social Geeky Advantage
were also partners at the event.
The 10 problems that were selected
for addressing were – question
paper leakage, corruption, sexual
harassment, traffic jam, security on
the highways, sanitation, water
transport safety, cyclone centre
management, reproductive health
and
personal
health.
Using
technology, more specifically mobile
technology, the developers tried to
build solutions to these problems.
The participants – who include
programmers, freelancers, students
and mobile application developers –
Hackathons are globally recognised
as a marathon coding event. It is a
gathering
where
programmers
collaboratively code in an extreme
manner over a short period of time.
Developers,
innovators
and
designers join Hackathon in a team
of 5 people generally to build
innovative prototype to solve some
given problem sets. Hackathon is an
ultimate exhibition of skills for
developers. Any Mobile App
Developer, User Interface Designer
and Web Service experts tale part in
the
event
where
students,
professionals, freelancers are the
main participants.
67
GADGET
XIAOMI REDMI
NOTE 4G
REVIEW
Another budget smartphone alternative,
and it looks good
By Saad Mahmud
Xiaomi is the Chinese smartphone
manufacturer, which quickly rose to
fame in the shortest time of its
existence in the market. The
smartphone manufacturer climbed
to take the Number 3 spot in the
world with the most number of
handsets shipped out of the factory.
Finally, it has entered the
Bangladeshi smartphone market,
facing stiff competition from budget
68
giants such as Walton, Symphony,
Oppo and others. The aim was to
have the MIUI operating system and
a decent smartphone in every hand.
And now, the Chinese smartphone
giant has gone to another extent by
launching the Redmi Note and
Redmi Note 4G, which is a 5.5-inch
phablet and has a pocket-friendly
price tag. We have the Redmi Note
for scrutiny and here is what we
have to state about the Redmi Note
(non-4G variant).
The Redmi Note (non-4G) features a
5.5-inch IPS HD display with a
720x1280 pixel resolution. The
display is protected with a Corning
Gorilla Glass 3 protection, tough
enough to resist scratches and
scuffs caused due to daily use.
Moving ahead, the Redmi Note is
powered by a Mediatek MT6592
chipset which features eight
processors clocked at 1.7GHz each.
Supported by 2GB of RAM and a
MALI-450 graphics processor, the
Note is a powerful handset for daily
work.
The internal storage is 8GB and can
be expanded using a micro SD card,
albeit only to 32GB. The Redmi Note
is provided with a 13MP sensor in
the rear camera and sports a single
LED flash, while the front camera
incorporates a 5MP sensor. One the
connectivity side, the Redmi Note
supports two SIM cards (WCDMA
and GSM), 3G, 2G, GPS, Bluetooth
and Wi-Fi 802.11 b/g/n. Lastly, the
Redmi Note is powered by Xiaomi’s
own MIUI operating system, a
custom brewed version of Google’s
Android v4.2.2 operating system,
and fuelled by a really large 3100
mAh battery. The Redmi Note
weighs 199g (4G weighs 185g) and
the thickness is 9.45mm.
The Redmi Note 4G has an exactly
similar look and configuration,
except for the chipset. The 4G
variant supports LTE 4G data speeds
and is powered by a Qualcomm
Snapdragon 400 chipset with a
quad-core 1.6GHz processor and an
Adreno 305 graphics processor. The
rest of the configuration is identical
to the non-4G variant, except that
the internal storage can be
expanded up to 64GB as compared
to 32GB on the non-4G variant.
The Redmi Note looks almost
similar to the Redmi 1S in terms of
aesthetics, except that it is a little
larger and broader than the latter.
The Redmi Note sports a dual-tone
body with an extremely glossy black
front and white rear panel.
The front panel has the regular look
as found on any of the Xiaomi
devices—earpiece on the top with
the front camera next to it and
January 2015
ICE BusinessTimes
GADGET
backlit capacitive buttons (back,
menu and home) on the lower end.
The volume rocker and power
buttons reside on the right side of
the handset, while the headphone
jack and micro USB port take their
places on the top and bottom,
respectively.
The rear panel sports the 13MP
camera, towards the top-centre,
with an LED flash just below it,
while the chrome-plated Mi logo
and the speaker grill are placed on
the lower end.
The rear panel is extremely glossy
and can attract scratches in minutes
if not handled with care. We
suggest, you opt for a silicon back
cover or alike to save the device
from tarnishing. Xiaomi has a lot of
rear panels for the smartphones and
you could opt for one of these from
the Flipkart website. As for the front
panel, since it sports a Gorilla Glass
3, you need not worry about
scratches. So even if you don’t
install a scratch guard, it would be
fine. However, installing a scratch
guard or screen protector is a
personal preference.
We did notice one issue with the
rear panel—Xiaomi somehow did
not provide a recess to the rear
panel to help open it. Instead, you
have to rely on the groove of the
micro USB slot, on the bottom end,
ICE BusinessTimes
January 2015
to open the rear panel. Below the
rear panel you will find a really
large housing for the 3100 mAh
battery. You have to remove the
battery in order to slide in any of the
SIM cards or the micro SD card.
The handset is a bit too
uncomfortable for regular use. The
device is a bit large and not
recommended for those with tiny
palms. However, is you are looking
for a device with a screen for work
and fun, the Redmi Note is one piece
we can recommend. The device is a
good blend for those looking for a
smartphone with a little bit of room
for a tablet experience.
Switch on the Redmi Note and you
will find everything familiar, if you
have used any of the Xiaomi
handsets. In short, there is nothing
much to talk about the MIUI
operating system unless we see the
MIUI V6 making its debut on one of
these handsets.
Moving on to the camera front,
though the camera is good enough
with a 13MP sensor, we found the
camera capturing images slightly
slower than usual. So you may miss
out on a few important shots while
focussing and grabbing the exact
moment, especially when shooting
action or fast moving objects.
Images shot are also a little above
average - the quality is not at par as
we assumed it would be similar to
the 13MP camera of the Mi3. The
images are a tad darker and could
do with a little more brightness,
though this could be resolved later
by a little photo editing, if needed.
Also the images are found to be a bit
grainy when zoomed in. Lastly, we
also did notice that some colours
being captured are a little too
vibrant and not as natural as it
should be. Overall, the performance
of the camera is above average, and
for the price of the smartphone, we
think it is one of the best you can
get. Pictures captured in HDR modes
were excellent. The camera does a
pretty decent job with the exposure
levels.
On the audio front, the earpiece’s
performance is good enough.
However, the rear speaker is a bit
lower than normal. Though the
audio quality is decent, the audio
volume is pretty low and since the
speaker is on the rear, you would
end up cupping the device with your
palm for an audible experience.
Using a pair of earphones would
resolve this issue for now.
Hopefully, Xiaomi takes care of
these few issues in a software
update.
Overall, the experience with the
Xiaomi Redmi Note was good. The
average performance and large
build can be ignored, but the large
display with an IPS panel and great
viewing angles are crisp and clear
for a good multimedia experience.
The large display also makes it
comfortable for the internet and
casual typing and chatting. The
camera is definitely above-average,
albeit a bit sluggish while capturing
shots.
For a price of Tk. Tk. 15,700, you
can obtain it from Gadget Gang 7.
Find
them
out
on
Facebook.com/gadgetgang7
and
make your order today.
69
INNOVATION
CREATIVITY AMIDST
UNCERTAINTY
How to maintain consistent
work rate during
crucial periods
‘Innovate or die.’ Any astute company has heard this before and heeds the warning.
But while there are countless books, articles, and tools available to help you do it,
there is one crucial facet that we feel makes or breaks any innovation project. We
affectionately call this ‘the grayzone.’
The grayzone is the time we spend in between ‘what we know now’ and ‘where we
need to be.’ This territory is a dive into the unknown, often accompanied by optimism,
excitement, and joy, as well as deep uncertainty, discomfort, and tension.
Entering and making it
through this zone are an
essential part of the
innovation process, and
avoiding it lessens the
chance of creating anything
new. Even for the most
seasoned innovators, this can
be quite daunting. As a team
that travels this territory
regularly, we have identified
some key activities and
mindsets to prepare and help
you through your next foray
in one piece:
70
January 2015
ICE BusinessTimes
INNOVATION
1. Pledge To Take The
Plunge
Decide to do it and hold yourself
accountable. If working with others,
spend the extra time aligning at the
beginning.
Foster
trust
and
commitment amongst one another.
You are embarking upon a journey
into the wilderness together.
2. Keep An Open Mind
‘The more I learn, the more I realize
I don’t know’ -Einstein
It’s essential to have goals and
benchmarks, but rigid structures
don’t leave room for growth. Pencil
in time to adapt, switch course, and
embrace the unexpected. Without
this, innovation doesn’t happen.
One client came to the table with
ample devotion, money, and
confidence, but we misidentified
this confidence as preparedness and
willingness to enter and enjoy the
grayzone.
Much to the contrary, their
confidence came from prowess in
their specific niches and ability to
navigate the status quo. But when
faced with the challenges of
innovating from scratch, a process
entirely foreign to them, their
approaches and mental schemas
didn’t deliver as expected. This
cracked their confidence, created
cognitive dissonance, and aroused
criticism. Tension escalated quickly,
nearly to the point of no return. To
mitigate, the team took a break,
rebuilt rapport outside the context
of the grayzone, and rebuilt
confidence with an easy activity
before going back in.
When innovation happens, it’s hard
to predict how large its impact may
be; part of the beauty is that it’s
regenerative. New ideas beget new
ideas, and the ripple effect is
endless. Value adds come out of the
woodwork
in
unusual
and
unfamiliar places. This is part of the
fun.
3. Get To Know The
Team
Understanding
culture
and
personalities of the team you’re
working with is of utmost
importance. Each new team is like a
ICE BusinessTimes
January 2015
foreign country—they have a
specific culture, or perhaps they’re
just beginning to establish it.
Nevertheless, ‘citizens’ always have
distinct personalities, hierarchies,
and tendencies.
Even when a team is ready to hit the
ground running to meet aggressive
timelines, it is crucial to adapt
culturally and establish trust. This
extra effort at the front end is the
very fabric that holds teams
together in the grayzone.
In one instance, a team’s timeline
was so aggressive that this step was
skipped. When we hit the grayzone,
hierarchies appeared and became
problematic.
Furthermore,
attachment to their status quo
crippled trust in another method
and with those that supported it.
To avoid this, prepare your teams to
learn without harming the ego and
establish trust and intuitive work
flow as teams get acquainted with
each person’s strengths. Always
spend the time to build or rebuild
trust and rapport, and prepare
everyone for what the grayzone
feels like and its value.
4. Lower The Stakes For
Failure
Fear of failure can hinder even the
most seemingly fertile innovation
climate. The team needs to feel safe
to put forth and experiment with
new ideas and approaches without
critical
judgment
attached.
Fostering such a climate lies as
much in the hands of leadership as
it does with each team member.
When a wave of doubt or deadlock
strikes trust that it will pass. If no
one panics, it always does.
The grayzone is, by our definition,
leaving the comfort zone. To leave,
the status quo must be put aside. It
is the ominous storm cloud over
your innovation parade. Though
hitting milestones and meeting
standards is paramount to any
successful program, the great
balancing act requires adaptability
and trust.
5. Bring Tools
If you were preparing to go into the
jungle, you’d bring survival gear.
The grayzone is a similar
adventure—it requires preparation
and tools to survive.
Tools and techniques like centered
design
methods
provide the
touchstones for sense making while
in the grayzone. Hire an experienced
advisor or consulting team to
provide these and guide your use of
them. Lastly, make your schedule a
tool by planning for flexibility.
6. Announce Your
Arrival
Palpable discomfort is a first
symptom—talk about it openly.
Communication is key. Align
internally beforehand to prepare
everyone for what this discomfort
will feel like. Make sure everyone is
confident in the importance of this
stage of innovation.
7. Keep Calm And
Continue
Enjoy it—you’re doing something
different and learning new things,
which has inherent value. Focus on
the benefits of learning the new
process in the present to dull worry
or fear surrounding outcomes.
71
MOVIES
STILL
PRIMITIVE IN VIEWS
What Sony’s hack
reveals about
Hollywood’s struggles
with technology
72
The more leaked documents that make their way across the
Internet in the wake of the massive hacking of Sony Pictures
Entertainment’s computer network, the more we learn about
the way Hollywood really works. Which is to say that for
those who thought the hyperbolic antics of HBO’s
‘Entourage’ were hyperbolic antics: think again. Most
explosive so far is an email spat between Sony’s head of film
division, Amy Pascal and producer Scott Rudin over the
disastrous development of Aaron Sorkin’s Steve Jobs biopic.
January 2015
ICE BusinessTimes
MOVIES
B
ICE BusinessTimes
January 2015
But beyond the sensational value of
these and other revealed documents,
which include code names for stars; the
confidential information of Sony
employees and talent (including
Sylvester Stallone’s social security
number); and unreleased movies, such
as Annie — the hack illuminates
Hollywood’s ongoing struggle to wrap
its
head
around/keep-up
with
technology. From piracy to streaming to
3-D, it’s never been an easy road for
Hollywood to adjust to the fast-paced
digital surge that is redefining how we
make and consume entertainment.
Although there are individuals and
companies — such as Disney and
DreamWorks Animation — that are
taking bold steps when it comes to
embracing
digital
content
and
platforms, many Hollywood operators
remain wary at best of new tech. In part
that’s because the recipe for merging
traditional and digital media is not
entirely clear — for all of the proof that
YouTube and Vine are the preferred
entertainment hubs for young people —
as a story in The New Yorker points out
- there is still not a clear and compelling
monetisation model.
As one cable network executive says in
that story: We have a lot of
conversations about YouTube. We ask,
‘Is it to us now what cable was to
broadcast in 1992?’ The parallels are
there—lower
production
values;
smaller, narrower audience — and it’s
even cheaper, even more niche, even
less profitable today than cable was
then. Only ‘—he hesitated, not quite
ready to change his frame of reference
—’ none of YouTube’s stars have really
crossed over and landed a big show on
Bravo or MTV.
This general ambivalence toward
digital that courses through Hollywood
— the sense that it is the inevitable
future, yet a future that no one quite
understands — and Sony has taken the
form of denial as of late. According to
the Los Angeles Times, when the Dept.
of Homeland Security warned the
studio that its upcoming release, The
Interview, could incite a hostile
response from the North Korean
government in the form of a cyber
attack, the studio looked the other way.
Starring Seth Rogen and James Franco,
the film is a fictitious account of two
journalists who assassinate North
Korean leader Kim Jong-un — not
known for appreciating self-parodies,
particularly those forecasting his
death. Both Sony and the Dept. of
Homeland Security have denied any
discussions.
Even the leaked emails suggest a
naiveté about the unsecure nature of
digital communication. Washington
officials surely (well, in most cases)
know better than to put things down in
writing, any form of writing, lest their
documents be subpoenaed. Hollywood
should behave no differently when
discussing some of the most
high-profile people on the planet —
people upon whom their business
depends — via their iPads.
At this point it’s unclear what the
fallout will be for Sony. There will be
the cost — estimated at tens of
millions of dollars — of rebuilding its
computer network, not to mention
fending off possible lawsuits. But of
greater consequence is how those who
have been harmed (and those who do
not want to be harmed in the future)
react. Will Angelina Jolie take her next
project to Sony? What about other
filmmakers? Reputation is a harder
thing to repair than a network.
If this were an Entourage episode, Ari
would hug it out with those he’d
defamed and swear off email. It won’t
be quite that simple for Sony, though
one can assume they will come out of
this with a less insular attitude toward
technology combined with a new
appreciation of that old-school gadget,
the telephone.
73
DIFFERENT PERSPECTIVE
CUTTING
THE HEAD
FOR CURE?
Uber’s PR disaster in India is due to
a psychological degeneration, not
their services
U
ber, the smartphone-based
service
which
enables
otherwise unlicensed drivers to
provide on-demand taxi services in
major cities around the world, has
been dealt the biggest blow against
its image in a year which has
brought many others. After a
complicated hunt last month,
Indian police officers arrested an
Uber taxi driver on the charge of
raping a woman on an evening.
The transport department of New
Delhi had subsequently banned the
service from operating in the city,
one of 10 in India in which Uber has
established itself. The unidentified
alleged victim, an executive with a
global tax and advisory service
74
consultancy in Gurgaon, was
seeking passage from a party in
south Delhi on that night to her
home in Inderlok, north Delhi, when
the crime is said to have taken
place. She is variously reported as
aged 25-27. The woman used the
Uber smartphone service to order a
cab home, which arrived at
10.20pm. After falling asleep during
the journey, the woman claims that
she awoke to find the driver with
her in the rear seat, assaulting her.
CEO of Uber, Travis Kalanick
released a statement the next day
via the California-based company’s
blog, describing the incident as
‘horrific’,
and
pledging
the
company’s support in bringing the
January 2015
ICE BusinessTimes
DIFFERENT PERSPECTIVE
perpetrator of the assault to justice.
‘We will work with the government
to establish clear background
checks currently absent in their
commercial transportation licensing
programs. We will also partner
closely with the groups who are
leading the way on women’s safety
here in New Delhi and around the
country and invest in technology
advances to help make New Delhi a
safer city for women’.
It is reported that Yadav’s (the
accused driver of the incident)
application to become an Uber
driver in New Delhi was gravely
mishandled – that he was accepted
for the scheme despite not having
undergone
police
background
verification which would have
revealed his seven months in jail
between 2010-2011 associated with
an accusation of rape; that his car
lacked the mandatory GPS system
that Uber requirements mandate,
ICE BusinessTimes
January 2015
but that he substituted that
functionality with a downloaded
smartphone app; and that he lacked
a Delhi Transport Authority driving
license, encouraged (though not
mandatory) for taxi drivers in the
capital city.
Uber has suspended Yadav in the
wake of the allegations, and are
cooperating with the Indian police
on the matter. The company, which
has
drawn
protests
from
participants in licensed cab schemes
in many parts of the world where it
operates, has suffered many PR
disasters in 2014, including its
controversial surveillance policy, its
recent
objection
to
India’s
requirement
for
burdensome
two-factor payment authentication
and a controversial suggestion that
its journalistic critics should
themselves be investigated, but the
Delhi incident would seem to be the
most harmful yet.
The rape allegation against the Uber
driver could lead to a broader
crackdown on Uber’s Indian
imitators as well. One of the most
vulnerable is Ola Cabs, which runs
an Uber-like service with more than
33,000 vehicles operating in 26
cities across the country. Ola
recently received a $210 million
investment from SoftBank, the
Japanese company that is the
largest shareholder in Chinese
e-commerce giant Alibaba.
The crackdown on Uber will have an
impact
on
Ola.
The
Delhi
government said it would stop other
Web-based service providers from
operating until they obtain the
required permits. Less than a week
before the incident, Kalanick crowed
about the company’s growth
potential in Asia. Uber’s latest $1.2
billion financing round, Kalanick’s
wrote on his blog, ‘will allow Uber
to make substantial investments,
particularly in the Asia Pacific
region’. The same day, Uber
announced its launch in Vietnam
and celebrated with a lavish party at
the Hanoi Opera House, featuring a
16-person orchestra.
The future of Uber’s biggest
business in Asia has become
questionable,
at
best.
The
government has since gone a step
farther, adding that Uber is not only
unwelcome, it will be ‘blacklisted’ in
the future. With its Indian business
at risk, the company probably didn’t
help itself with a statement
suggesting that the government, not
Uber, bears responsibility because
of lax regulation.
75
LEADERSHIP
SOLIDIFICATION
Simple Acts That Build
Your Leadership Presence
Discussion about leadership often focuses on big-picture ideas and sweeping gestures. Leaders
are people who take charge and make things happen. We think of them as having big jobs,
larger-than-life personalities, and expansive vision.
But none of us were born with these qualities and achievements. Leadership ability is like a
muscle – it gets stronger as you exercise it, says leadership coach Jonathan Gain, founder director
of Gain Innovations Ltd. A seasoned veteran at Bangladesh’s multinational companies, he now
runs his own firm to inspire people to bringing out their own leadership attributes forward. He
says that enhancing your leadership skills and practicing ‘random acts of leadership’ can
cumulatively build your leadership acumen and help you excel when the big opportunities to lead
come your way. Here are some acts of everyday leadership that can help.
76
January 2015
ICE BusinessTimes
LEADERSHIP
Prepare your mindset
When you prepare the conditions for
your success, you have a solid
platform to support your leadership,
says Gain. Such preparation happens
in a number of ways. On the most
pragmatic level, it means preparing
yourself by building the knowledge
and experience you need to lead.
However, it also means preparing your
attitude, mind and body. That
includes being aware of how you feel,
managing stress, taking care of
yourself physically, and keeping your
mind clear so that you’re able to solve
problems and recognize opportunities
when they arise, he says.
Leadership is about doing less and
being more. The reason you want to
do these kinds of practices is that it
increases your availability to your
task, which is being aware of and
solving problems so that other people
can do great work.
Express you opinion
(even if it's unpopular)
G Sumdany Don, former FMCG
manager turned motivational speaker,
says that leaders aren’t afraid to say
the thing that needs to be said, even if
it’s unpopular. Proposing solutions to
do things better or more effectively
sounds like a no-brainer, but it can be
difficult to create change in some
situations.
Leaders practice speaking up by
looking for opportunities to do so in
appropriate ways. Sometimes, this
requires a strong, firm approach, and
sometimes it requires diplomacy.
Either way, saying something when
your gut tells you things need to
change is the mark of a leader, he
says.
It is important to have critical
thinking and creative skills to be an
effective leader because the best
solution might not always be the
obvious one
ICE BusinessTimes
January 2015
Think About the Big
Picture
While acts of kindness are designed to
make a difference in the life of
another person, Gain says that acts of
leadership are designed to make a
difference in something bigger. That
could mean taking a stand against an
injustice or taking on a role that needs
to be done. Leaders approach every
situation looking for what they can
contribute and how they can make a
difference, he adds. When you’re
contributing ideas to meetings, bring
them back to how they support the
overall goals of the team or
organization. Illustrate that you
understand factors beyond the most
immediate demands.
Find Solutions
Leaders are good at solving problems.
They look for solutions that serve the
needs of the greatest number of
parties and understand that even
effective solutions might not always
be popular. It is important to have
critical thinking and creative skills to
be an effective leader because the best
solution might not always be the
obvious one. Look around you in your
everyday interactions. Are there
problems that need to be addressed?
Can you approach another colleague
and bridge a gap or find a better way
to do something together? These are
simple ways to show your leadership
ability regardless of your position.
Be Authentic
It’s hard to trust someone who is fake,
so effective leaders need to convey
that they’re really being true to who
they are and what they believe, Gain
surmises. Look for ways to connect
with others genuinely and don’t veer
from your beliefs just because you’re
under pressure to do so.
‘One of the ways that we can bring
leadership to any situation is by being
willing to be real, which includes both
being honest about what we’re thinking
and what we’re feeling but also being
genuine and interested in what others
have to say,’ Gain says.
77
GROWTH
NOT
WORTH IT
Why ‘growth at all
costs’ is never
worth it
That old axiom ‘grow or die’ might
apply to certain aspects of human
development or the natural world,
but be very careful how you apply it
to your business. The truth is that
‘grow or die’ can be, and often is,
devastating.
Too many executives are found to
have the mentality of a bodybuilder;
they've come to accept the idea that
growth is synonymous with success.
So they rely on the business equivalent of steroids, bulking up the top
line with things such as overly
aggressive sales tactics, unwarranted price increases, self-destructive
discounting, unnecessary mergers
and acquisitions, or even a poorly
considered IPO. These actions come
with their own list of dire side-effects: alienated customers, burned
out employees, and disillusioned
executives who are left asking one
another, ‘Remind me again, why did
78
we think we needed to grow?’
Please avoid the strong arm
approach and instead think more
like a farmer. Your focus should be
on creating an environment where
growth can occur, and then letting
nature take its course. If that sounds
passive or wimpy, consider that the
farmer's approach to growth takes
greater wisdom, humility, and
restraint than the bodybuilder's, and
that the rewards are far more attractive--and dependable.
At its core, all authentic growth
depends on more customers wanting
more of what your company offers.
Any other drivers--pricing gimmicks,
heroic marketing efforts, forced
acquisitions--are ultimately destructive. In addition to focusing on
customer needs, you should also
work to create the healthiest organisation possible, one free of politics
and confusion that so often choke
off teamwork and innovation. Keep
communication lines open to keep
employees engaged and committed.
And make sure your team is continually reminded of the importance of
having everything the company does
connect to the needs of customers.
There are many ways to communicate with employees. The best example may come from Hayes Drumwright, CEO of Denver-based
technology company Trace3. He
publishes a book every year outlining his thoughts and vision for the
company. If you don't have time for
that, holding quarterly off-sites with
your leadership team is a great way
to address any behavioural dysfunctions that might be sprouting.
When you do these kinds of things,
growth will occur naturally--but
only if it's meant to be. Some companies simply aren't meant to be bigger
than they are. They provide products
and services that satisfy their
customers in a way that pays the
bills, produces reasonable profits,
and allows them to keep their people
employed and fulfilled. And there's
nothing whatsoever wrong with
that.
Yes, some companies are essentially
forced to grow by any means necessary, either because impatient investors are demanding an immediate
return or because disruptive market
consolidation is forcing them to
scale or be swallowed by someone
else. Be grateful you aren't at one of
those companies (and if you are, you
deserve sympathy, not envy),
because they are anything but role
models.
When people think about famous
CEOs, it's a bodybuilder who comes
to mind. But, the best CEOs may be
ranked by the nature of how they
operate, almost always unknown.
They are usually farmers, people
running small or medium-sized
companies exactly as they should be
run, and scaling them at just the
right pace. That's healthy growth,
sustainable, and worthy of admiration.
January 2015
ICE BusinessTimes
CAREER
ENOUGH
SAID
You no longer have good work-life
balance. When you find that you’re
spending less time with your family
because of work, or you cannot
commit the necessary time to your job,
you
should
consider
looking
elsewhere.
When is it the right
time to say you quit?
You graduated with distinction from a
top Bangladeshi university, you joined
one of the coveted corporate houses.
But things do not go according to plan,
as you soon find out that your work
life is miserable, you find your job
miserable and you want to quit every
working day. But when is it the right
time for you to actually quit?
‘For some, the time to leave a job can
be quite clear — where as for others, it
might not be so obvious,’ says Ryan
Kader, an HR headhunter. He added
that some employees know when
they’ve reached a point where it’s time
for a change, ‘because they reflect on a
regular basis to ensure their job aligns
with their long-term goals.’ If the two
are not aligned, they often make
adjustments to keep things on track,
he says.
As for others, they don’t realize they’re
unhappy with their job until someone
points it out to them, or they realize
they spend too much time at, or
outside of work being unhappy about
their position, he adds. ‘It’s the topic
that keeps them up at night thinking,
what should I do? They consult with
friends and family, seeking advice, to
validate their reasoning. They know
the answer, which always involves
change, but the difficult part is making
the change itself.’
Here are 14 signs that your job isn’t a
good fit for you anymore, and it’s time
to consider how you can either
improve the issues or think about
leaving’. If multiple of these signs
apply to your situation, then it’s likely
time to leave as soon as possible,’
Ryan says.
You Lack Passion. You’re not waking
up most mornings with a feeling of
excitement towards your job. That
feeling you had when you first started
working there–thinking about all the
80
Your skills are not being tapped.
possibilities and contributions ahead
with a sense of glee—is gone.
You’re miserable every morning.
Quite simply, you dread going into
work.
Your company is sinking. There’s
no need to go down with this ship. Put
on your life preserver and get in the
water.
You really dislike the people you
work with and/or your boss. You
can try to work out the problems
you’re having with colleagues or your
manager—but know that sometimes
they’re not fixable.
You’re consistently stressed,
negative, and/or unhappy at work.
If you get anxious or unhappy just
thinking about work, that’s a good
sign that it’s time to move on.
Your work-related stress is
affecting your physical health. The
work, people, or culture is unhealthy,
and it has a negative impact on you
physically and mentally. The stress is
present both inside and outside of
work; it’s consuming. Your family and
friends are affected by this, too. When
work starts affecting your health
–physical, mental, or both – it’s time to
get out.
You don’t fit in with the corporate
culture and/or you don’t believe in
the company anymore. You feel that
there are ethical or moral differences in
how the company and you believe the
firm
should
operate;
cultural
differences; work ethic clashes, and so
on. Whatever the issue, you’re morally
misaligned with your employer, and
it’s an uncomfortable workplace
setting.
Your work
suffering. If
performance
is
you’re no longer
productive at work, even though
you’re capable of performing the
task(s), you might want to start
looking for new work.
Management doesn’t acknowledge
that you have more to offer than what
you’ve been contributing for a
significant amount of time, you’ve
been passed over for promotion, or
attempts to take on more challenging
assignments have failed. No one has
said anything, however, you are no
longer getting the plum assignments,
you are no longer asked to attend key
meetings, or your proposals are met
with silence or denial.
Your
job
duties
have
changed/increased, but the pay
hasn’t. Sometimes there’s a good
reason for this. When downsizing has
moved your team into double time, but
certainly nowhere near double
compensation, it may be time to move
on. That’s especially true if the
company is performing well, but it’s
not reflected in your salary or other
rewards.
Your ideas are not being heard. If
your ideas are no longer heard or
valued; you can’t seem to get time with
the ‘powers that be’; or you cannot get
approvals or acknowledgment for
great work, think about finding a new
job.
You’re bored and stagnating at
your job. If you’re not growing or
learning anything new, it might be
time to leave. They say when you’ve
outgrown the position and there is no
opportunity for advancement–or you
seem to work the same job day in, day
out without any opportunity for
growth, even though you crave
more–it’s time to get out.
You are experiencing verbal abuse,
sexual harassment, or are aware
of any type of other illegal
behavior. If you’re the victim of
bullying, sexual harassment or other
egregious behavior, you should
certainly keep an eye out for other
positions, regardless of what corrective
measures you’re taking.
January 2015
ICE BusinessTimes
AVIATION
I
In 2000, Texas billionaire
Robert Bass came across a
theory of supersonic speed and
aircraft wing technology that
made him reach for his
checkbook. First, he bought
five textbooks used in Stanford
University aeronautics classes
to bone up on the subject. Then
as he delved into the physics of
planes, he became increasingly
convinced that a profitable
supersonic business jet was
viable. Says Bass, who flew on
the Concorde, which took
passengers across the Atlantic
faster than the speed of sound
for 27 years until it was retired
in 2003: ‘The more I dug into it,
the more interesting it got.’
So he struck a deal with
Richard Tracy, whose patented
computer model of laminar
airflow over wings had inspired
him, and assembled a team of a
dozen people, including an
engineer who once headed
Boeing’s
high-speed
civil
transport program, to make the
dream a reality. That didn’t
happen at supersonic speed,
82
however. Bass’s Aerion spent
the next decade—and more
than $100 million—working
out technical kinks, causing
many naysayers to wonder if
his high-flying dreams would
ever get off the ground.
Aerion can no longer be
brushed off as a billionaire’s
folly.
In
September
the
company signed a technology
sharing deal with Airbus
Group, which agreed to help
with the design, construction,
and certification of the AS2
business jet. Airbus, itself
formed from the companies
that built the Concorde, lends
credibility to the project, which
is still in the design phase and
is targeting a first flight in
2019. Allan McArtor, chief
executive officer of Airbus’s
U.S. unit and former head of
the U.S. Federal Aviation
Administration,
says
his
company saw value in Aerion’s
technology and predictive tools
for airflow. ‘We want to get out
ahead of the future,’ he says.
‘We don’t want to get caught by
surprise. We don’t want to read
about it.’
Aerion projects the AS2 will
shave more than 4 hours off
the 10 hours and 25 minutes it
now takes to fly from San
Francisco to Tokyo, fueling
demand for 600 such jets over
a 20-year period—even at a
price of $110 million a pop. ‘On
a first-mover basis, there’s a
January 2015
ICE BusinessTimes
AVIATION
RELIVING
THE LEGACY
OF THE JET
PLANES
The slow takeoff of
Robert Bass’ Supersonic
Business jet
pretty significant market there,’
McArtor says, noting Aerion’s
pioneer advantage: There won’t be
room for four supersonic business
jet makers.
Private
aviation
will
adopt
supersonic flight before commercial
carriers, McArtor says, because big
airlines don’t sell speed; they sell
luxury service for business travelers
and low-priced seats for tourists in
coach. But corporate executives and
wealthy entrepreneurs would pay to
fly faster than competitors, says
Steve Varsano, founder of The Jet
Business, in London, which helps
customers buy and sell jets. ‘There’s
no question that there’s a market
for supersonic,’ says Varsano, who
says he has five customers who
signed letters of intent to purchase
the Aerion jet. (It began taking
deposits before the 2008-09
ICE BusinessTimes
January 2015
recession slowed development, and
some deposits were refunded.)
The Concorde failed because it had
limited range (1,000 miles less than
the AS2), was too loud to fly over
land, and lacked the comfort that
wealthy
passengers
were
accustomed to, says Bass, a member
of a storied Texas oil clan, founder
of Oak Hill Capital Partners, and
head of private equity firm Keystone
Group. ‘It was fast class. It was not
first class,’ he says. ‘It was a
tourist-class seat going very fast.’
The AS2 doesn’t require a change in
the U.S. ban on civilian supersonic
flight over land, Bass says. It can
cruise close to the speed of sound
there and then open the throttle to
Mach 1.6 once it’s over water—on
the international runs where speed
matters most. A likely rival is
skeptical. Gulfstream Aerospace
CEO Larry Flynn says he doesn’t see
enough buyers to make a supersonic
jet feasible until the sonic boom can
be mitigated enough to permit
flights over land. ‘That’s going to
take some law changes, particularly
in the U.S.,’ says Flynn, who keeps a
team of engineers working on a
solution.
Bradley Mottier, a General Electric
Aviation vice president for business
and general aviation, says an
engine design with the right
combination of power, noise
abatement, and fuel consumption to
power the AS2 is technically
attainable—at a cost. ‘Can we make
an engine for that? Absolutely,’
Mottier says. ‘The challenge with
the supersonics is what’s the [sales]
volume going to be, and how much
investment is justified by the
potential volume.’
83
TOURISM
STENCH
OF REVENUES
Cox’s Bazar’s fledging dried fish industry
could boost local tourism and product export
By Saad Mahmud
Photos by Din M Shibly
84
January 2015
ICE BusinessTimes
TOURISM
T
The traditional dried fish
market of Bangladesh is
shrinking gradually, and the
reasons are many, one being
lack of proper communication
and proper realisation or
appreication of dried fish as
food itself. With an increasing
population, the demand for
dried fish is rising on the
domestic and international
markets every year. However, a
fall in production is pushing
up the prices of dried fish and
traders are depending more on
low quality imported dried fish
to meet the local demand.
Traders said imported dried
fish accounts for 70 percent of
the local market, a clear sign
of falling domestic output.
‘Local dried fish had more
than 80 percent share in the
domestic market even a decade
ago, but the scenario has
reversed in the last few years,’
said Faisal Hossain, a trader at
Asadganj dried fish market in
Chittagong.
The sector is mainly dependent
on marine fish from deep seas,
said Nani Gopal Das, a
professor of marine fisheries at
Chittagong University. The
production of marine fish fell
due to various reasons; people
are fishing indiscriminately
violating rules, Das said. ‘As
the mother fishes are
destroyed, fish production has
decreased, which brings down
the volume of dried fish.’ Jahed
Hossain, proprietor of Hazi
Bajal Ahmad and Sons, a dried
fish trading house, said
over-fishing in the main
fishing zones, pirate attacks
on fishermen and low income
of the fishermen have led to a
reduced fish production.
ICE BusinessTimes
January 2015
85
TOURISM
He also blamed government
negligence in preserving the marine
fishes. Vigilance by law enforcers to
thwart indiscriminate fishing is
inadequate, he added. The Asadganj
market is a trading hub with around
40 stockists and more than 260
wholesalers. Fishes from all the fish
processing areas, especially the
coastal areas and islands such as
Rangabali, Sonadia, Kutubdia,
Talpatti, St Martin’s, Teknaf,
Banshkhali, Anwara, Moheshkhali
and Cox’s Bazar, come to this
market.
A portion of the dried fish from this
market is exported to the UK, the
USA and the Middle East countries
as the demand is high among the
Bangladeshi expatriates.The Middle
East is the largest market for dried
fish from Bangladesh, covering 90
percent of the total exports, said
86
Farid Ahmad, general secretary of
Asadganj Dried Fish Traders’
Association.
According
to
Department
of
Fisheries, a total of 1,050 tonnes of
dried fish were exported from July
2012 to March 2013. He said
production of dried fish takes place
only for four months — between
early winter and early summer.
Only 30% of the total demand of the
country is met by local production;
the rest is imported from India,
Pakistan and Myanmar, he said.
Around 739 tonnes of dried fish
were imported from these countries
from July 2012 to March 2013, said
officials
of
the
government
department. Around 30 varieties of
dried fish are found in the market.
The most popular ones are Chinese
pomfret
(rupchanda),
Indian
salmon (lakkha), ribbon fish
(chhuri), Bombay duck (loitta) and
shrimp.
The prices depend on quality and
size — rupchanda sells at Tk. 4,000
a kilogram, chhuri at Tk. 1,200,
loitta at Tk. 400, and shrimp at Tk.
800-1,000. The prices of different
types of rangabali and sonadia
dried fishes are higher. ‘Last year, I
bought rangabali rupchanda shutki
at Tk 2,000 a kg, but now the price
has
almost
doubled,’
said
Mostafizur Rahman, a customer
from Chittagong.
If the government takes steps to
preserve marine fish, increase
production, stop pirate attacks on
fishermen and support the traders,
the sector will turn into a profitable
export oriented industry, said
Ahmad of the dried fish traders’
association. Otherwise, the sector
would dry up soon, he added.
Lieutenant
Commander
Atiqur
Rahman of Bangladesh Coast Guard
(east zone) said they face a shortage
of manpower and logistics to patrol
the vast fishing areas and protect
the fishermen from pirate attacks.
Pravati Dey, deputy director (quality
control
and
inspection)
of
Department
of
Fisheries
in
Chittagong, said the government
has taken some initiatives. ‘We
mainly create awareness among the
fishermen and train them on dried
fish production,’ she said.
January 2015
ICE BusinessTimes
BLUE ECONOMY
LIGHTING AN
INDUSTRY
How Kutubdia could
be the next best
destination after Cox’s
Bazar, albeit
temporarily
By Saad Mahmud
A main thrust of country's economy may be on
Cox's Bazar tourism haven. It boasts the
longest unbroken sea beach in the world and
hosts an array of small and big islands. Some
3 million tourists from home and abroad visit
this site during the tourist season alone. But
unplanned development of the beach city
poses nagging problems for the backpackers.
This has made way to raise voice for a new
tourist destination, and critics are opting for
Kutubdia. Lying in the coastal area of
Bangladesh, it stands in the belly of the Bay of
Bengal. This Island is the off coast near
Chakaria and Cox’s Bazar of Bangladesh. It is
famous as it habitats the only lighthouse in
Bangladesh (which also acts as a helping hand
to ships trying to locate Chittagong port,)
which was built during the British period.
They are also famous for providing salt and
dry fish, also a formidable earning source of
foreign currency.
88
January 2015
ICE BusinessTimes
BLUE ECONOMY
Tourism Know-how
In Bangladesh only 39% of the
population has access to the
electricity grid. The cost of running
diesel generators for electricity is
expensive and beyond the reach of
most people living in rural areas,
therefore hydrid systems which
combine renewable energy and a
diesel generator have strong
potential.
A 1000 kW hybrid
wind-diesel
power
plant
in
Kutubdia, Bangladesh was found by
a recent study to be a cost effective
and environmentally friendly way of
supplying power to remote areas
currently not connected to the grid.
Why visit Kutubdia?
It was the exact same question I had
asked myself when I was on my way
to the island. After visiting the place
and talking to the local people, I
realised
that
it
is
your
quintessential bucket-list material.
Kutubdia is one of many islands off
Bangladesh and India affected by
increasingly rapid erosion and some
of the fastest recorded sea-level
rises in the world. These ‘vanishing
islands’ are shrinking dramatically.
Kutubdia has halved in size in 20
years, to about 100 sq km. Since
1991 six villages on the island of
fishermen and salt workers have
been swamped and about 40,000
people have fled.
The 80,000 people left on Kutubdia
all expect to follow suit. ‘The land
here used to be 1km out to sea,’
ICE BusinessTimes
January 2015
says Mohamed Rashed from the
village of Qumira Char. ‘We lost
mosques, a school, shops, farms.
We are scared of the sea now.
Gradually it comes closer to our
homes. When we sleep, we are
scared. Every year the tide rises
more and comes in further. Next
year this village may not exist.’
Rashed moved his house on to a
new three-metre high concrete
embankment in 2008, but the high
tides and tidal surges now top the
barrier. ‘God knows how long this
village will last. If it gets worse I
will have to go to the mainland. We
know the end is coming,’ says
fisherman Jakir Hossain.
At the current rate of erosion
Kutubdia will be off the map within
30 years, along with dozens of other
coastal islands. Sandwip, near
Chittagong, covered 600 sq km 50
years ago. It is now a tenth of the
size, its area having halved over the
past 20 years alone. Further north
along the Bay of Bengal, 12 islands –
home to 70,000 people – are said by
the Bangladeshi government to be
‘immediately threatened’ by the
rising seas; 90 others in Indian
waters, collectively housing more
than 4 million people, are said to be
at real risk. Sagar island is expected
to lose at least 15% of its area in the
next eight years, and may yet suffer
the same fate that befell the island of
Lohachara, which in December 2006
became the first inhabited island
known to be lost to rising sea levels.
For the visitors in Kutubdia , it will
take approximately 2 hours time to
reach to the island by bus, and the
fair will be cheap, roughly Tk.
100-120 . But the beach is empty
and almost there will be no good
facility for fine dining. So I suggest
packed foods and dry foods. There
are many local bazaars in Kutubdia,
so water and sanitation will not be a
problem, but there is no good hotel
to stay at night there. There is a rest
house (daak bungalow) and few
small hotels in the island. The rest
house is comparatively better in
outdoor view.
The easiest way to go to Kutubdia
Island is to go by Mognama ghat
(Mognama jetty). There is direct bus
service
from
Chittagong
to
Mognama, also you can go to
Mognama by CNG taxi from
Chokoria. One can go to Chokoria
from Chittagong, or from Dhaka by
direct bus. It is also possible to go
by Dhaka-Coxs Bazar bus and drop
at Chokoria Bazar. From Mognama
there is boat and speedboat to cross
the channel. Speedboat takes only
10/15 minutes and cost 60Taka
each pax. From Kutubdia jetty, you
can take a rickshaw to go to the
far/sea side of the island where
there is a rest house.
Archaeological heritage of this
island are Kalarma Mosque and
Tomb of Qutb Awliya which are very
popular to its visitors. If you visit
and see the actual scenario of
livelihood status of the local people
of Kutubdia island then you can
imagine the real situation. Young
locals are sitting in the floating
market for their livelihood. This is
everywhere at this island which you
can find easily. November to March
is the right time to Kutubdia Island,
without any kind of hassles.
89
WORD OF MOUTH
Enjoy Christmas at Amari Dhaka
Amari Dhaka, a five star Thai Chain hotel, celebrated
Christmas through different decorations to rejoice the
Christmas Eve in the hotel. The Bangkok based ONYX
Hospitality group recently launched Hotel Amari in
Dhaka. Amari is ONYX’s oldest and most established
chain of hotels. With a network properties spanning
Thailand, Amari embodies a vision of contemporary Asia.
Amari Hotels and Resorts is a Thai-based hotel and resort
chain operating a network of mid to upscale properties
throughout Asia and The Middle East.
With tasty food prepared and cooked by the head chef and
his team - recognizable, classic dishes as well as a
delightful selection of non-spicy and vegetarian options
were part of an exotic culinary experience not to be
missed. Whether you're looking to throw a private office
Christmas party, host a festive dinner or to join in one of
their shared Christmas decoration, Amari Dhaka Hotel is
the perfect choice for all occasions over the holidays.
Get down to business or celebrate one of life’s milestones
with Amari Dhaka. They understand that finding the right
venue is critical to the success of any event, which is why
they offer the best. Let their dedicated team of event
professionals take care of the smaller details so that you
can focus on the bigger picture. Choose from an exceptional
Christmas menu prepared by their highly skilled team of
chefs, and enjoy with something for everyone!
Quantum Consumer Solutions Ltd
celebrates 10th anniversary
Quantum Consumer Solutions celebrated their 10th
Anniversary at Grand Ball Room of The Westin Dhaka Hotel
on 20th November. Quantum, a leading qualitative research
agency in the Asia Pacific Region, set up office in Dhaka in
a joint venture with the Apex group in 2004. Since then they
partnered more than a hundred brands, both global and
local, bringing brand stakeholders a better and more robust
understanding of the Bangladeshi consumer.
Quantum is one of Asia’s leading consumer solutions
companies. The parent company, which was established
in 1990 in India, pioneered new research methodologies
and conceptual frameworks around the sub-continent and
introduced research techniques that recognised the needs
of Asian brands and companies.
Quantum’s work involves understanding consumer
behavior, attitude and perceptions against a socio cultural
backdrop. Our teams of researchers are trained to be
intuitive about and sensitive to consumer motivations
and manifestations. The process involves immersive
observation, primary data collection, analysis of
qualitative and ethnographic data, interpretation,
ideation and finally an actionable and strategic output for
brands and initiatives.
The Chairman, Quantum Group, Dr. Meena Kaushik was
present as the chief guest and delivered a welcome
speech. Managing Director of Apex footwear, Syed Nasim
90
Manzur spoke about the 10 year association with
Quantum. Tirthankar Dash, COO and Ruhina Halim, VP of
Quantum made presentations on Aspirants and
Ramada1n Consumerism respectively. To conclude the
event, a vote of thanks was presented by Rinita Singh,
Group Managing Director. Conversations with Quantum’s
global leaders took place on Frontiers in Qualitative
Research, Quantum 360 - Designing Solutions and
Ethnography - Critical in Bangladesh.
Chairmen, managing directors, department heads,
research and brand managers of multinational and local
organizations, advertising agencies and other research
firms joined in the celebrations.
January 2015
ICE BusinessTimes
SCB Signs MoU with
HungryNaki.com
Dhaka Regency unveils Royal Membership Program
Dhaka Regency Premier Club unveiled a new Membership program on
December 11 named ‘Royal Membership’, a priority Privilege Card with
enhanced privileges exclusively designed for the layer of preferred guests to
a range of premium services. Also Premier Club members will be enjoying a
bag full of stirring privileges at all the Dhaka Regency outlets from
December 15, 2014 – January 15, 2015. Shahid Hamid FIH, Executive
Director of the Dhaka Regency inaugurated the grand night with his opening
speech and expressed his gratitude on behalf of the owners and
management to the prestigious Premier Club Members.
Dhaka Regency Premier Club is an exclusive privilege program aimed at
ensuring guests enjoyment of culinary and lifestyle experience. Around
2000 members are currently active and enjoying exclusive privileges than
any other guest or corporate Partners at all the Dhaka Regency outlets
covering Dining, Accommodation & Entertainment along with the privileges
received from 25 Lifestyle Participating Partners both in home and abroad.
Zonta International
Club IV holds
awareness campaign
Members of Zonta International
Club IV of Dhaka gathered in
front of Gulshan Park on the 1st
of December at 3:30 pm to raise
awareness and increase actions
to end violence against women.
The club distributed T-shirts
among rickshaw pullers with
slogans printed on them to end
violence against women and girl
child. They also distributed
stickers and orange wristbands
to show Zonta’s collective
commitment and conviction for
the campaign.
Zonta International Club is observing 16 days of activism campaign,
‘Zonta says NO to violence against women ‘ which started from the 25th
of November 2014. This is to let everyone know that we Zontians
worldwide take necessary steps to eradicate violence against women once
and for all.
ICE BusinessTimes
January 2015
Standard Chartered Bank, the
leading international bank in
Bangladesh has recently signed a
Memorandum of Understanding
(MoU)
with
HungryNaki.com,
country’s first online food ordering
& delivery site. Under this MoU,
HungryNaki will offer 10% discount
on the food price exclusively to all
the Standard Chartered credit or
debit cardholders who will pay
HungryNaki.com by using their
StanChart credit or debit card.
HungryNaki.com
started
their
operation in end of 2013 with the
goal to facilitate customers to get
food without having to spend a
sweat. With warm welcome from
city’s food lovers this fast growing
ecommerce business is currently
operating in Dhaka and Sylhet cities
partnering with more than 400
restaurants.
And
now,
this
arrangement
with
Standard
Chartered bank will make the food
enthusiasts even more delightful as
their food is to be delivered at the
doorstep with a rewarding discount.
Westin Dhaka Wins World
Luxury Hotel Award 2014
The Westin Dhaka prides itself to
announce that it has earned the most
prestigious World Luxury Hotel Award
2014 consecutively 4th time in 2014 in
the category of Luxury Business Hotel.
December 6th marked the eighth annual
World Luxury Hotel Awards, and the first
time in six years to be celebrated on South
African shores. Local and international
award winning hospitality super stars
shone bright at the gala dinner ceremony
hosted at the Bay Hotel’s majestic
Rotunda in Camps Bay, Cape Town.
General Manager of the Westin Dhaka
Daniel Muhor ‘Located in the heart of the
capital region, with quick connectivity to
perfectly combine both business and
pleasure- The Westin Dhaka is an example
of the best luxury business hotel. To win
this award consecutively 4th time is a
humbling and heartening experience for
the Westin Dhaka.’
91
WORD OF MOUTH
2nd annual SEE
Awards Honours
RMG Industry
The
2nd
Social
and
Environmental
Excellence
(SEE) Award 2014 was held on
Tuesday, 9 December 2014 to
recognise the best practices in
Bangladesh’s
ready-made
garments (RMG) and textile
industries.
The SEE Award is an initiative
of Deutsche Gesellschaft für
Internationale Zusammenarbeit (GIZ) GmbH, which
works on behalf of the German Federal Ministry for
Economic Cooperation and Development (BMZ), in
partnership with the Government of the People’s Republic
of Bangladesh. First held in 2013, the event is
co-organised with Bangladesh Brand Forum, to promote
the importance of compliance in the RMG and textiles
industries. This is done by showcasing examples of the
industries’ best practices to buyers, factories and leading
apparel journals. It also engages the industry
stakeholders to improve different aspects of social and
environmental compliance and inclusive skills
development in the long run.
The award ceremony was graced by the Chief Guest
Honourable Minister for Expatriates’ Welfare and
Overseas Employment Engineer Khandker Mosharraf
Hossain and the Special Guests Honourable State
Minister for Foreign Affairs Md Shahriar Alam and
Honourable State Minister for Labour and Employment
Md Mojibul Haque Chunnu.
In its second year, the SEE Award handed out twenty-five
awards, comprising of 10 platinums, one champion, 10
golds, three honorable mentions and one for best trainer.
The winners were selected in four broad categories,
namely Social Compliance, Environmental Performance,
Inclusive Skills Development, and Building and Fire
Safety Excellence; which were further divided into nine
sub-categories.
In his welcome address Magnus Schmid, Programme
Coordinator, Promotion of Social and Environmental
Standards in the Industry (PSES), GIZ said, ‘Like any other
award, our main objective too was motivation through
recognition. Motivation, that is not only for the winners to
continue with their best practices but also for others to
follow in their footsteps. This gives factories as well as the
industry as a whole, the added value to attract enhanced
international image and increased clientele to follow.’
The City Bank AmEx signs
agreement with Nitol Motors
Ltd
City Bank recently signed an Agreement with
Nitol Motors Limited. Under this agreement,
City Bank American Express Cardmembers will
now be able to enjoy Tk. 1,99,000 savings on
purchase of Tata Nano Twist Car. The discount
will apply as soon as a car is booked
Tk.100,000 as booking money through Amex
Card and the rest amount is paid at a time..
The entire payment can be made by 0% interest
Flexibuy method in 3 to 24 monthly
installments.
Mashrur Arefin, DMD and COO of City Bank
and Md. Abdul Marib Ahmed, Vice Chairman,
Nitol-Niloy Group signed the agreement on behalf of their
respective organizations. Among others Majharul Islam,
Head of Cards, Nazmul Karim, Head of Brand from City
Bank and Md. Tanbir Shahid Ratan, CBO, PCBU from Nitol
92
Motors Limited and other senior officials from both the
organizations were present. The ceremony ended with
discussions on further strategic alliance between the two
organizations.
January 2015
ICE BusinessTimes
WORD OF MOUTH
Super Star Group
launches Pro Lighting
Super Star Pro Lighting of SSG
(Super Star Group) starts its journey
with 360 degree lighting solution,
services and maintenance recently.
Mohammed Ibrahim, Managing
Director and CEO; Aftab Mahmud
Khurshid, Group CMO; Engr Md.
Saimur
Rahman,
Head
of
Professional Lighting and Kazi
Mohiuddin Jilany, Manager Lightings Marketing & Business
Development were present.
Enjoy this holiday season
at Westin Dhaka
In this Holiday season Guests and locals can let The
Westin Dhaka help with their hectic holiday schedules
with year’s most attractive room package at Tk. 9999
including couple breakfast and attractive discounts on
SPA and food. During their stay guests can have the
opportunity for a perfect New Year’s plan for the whole
family and holiday special goodies, decors, savories with
the perfect tastes and flavor to get their holiday done in
the most stress-free way.
Experience the exclusive deluxe room package at Tk.
9,999, this package includes all that is needed for a
memorable holiday getaway. Take advantage of the
complimentary couple buffet breakfast at the Seasonal
Tastes and 4pm late checkout. The package also includes
a complimentary usage of Westin WORKOUT, Swimming
pool, Sauna, Jacuzzi. Enjoy the best holiday getaway with
30% discount on Westin Spa and 10% discount on food
ICE BusinessTimes
January 2015
only.
Also to the occasion of New Year Eve Special dinner will
be served at Tk. 5000 from 06:30pm-11:30pm. Start a
brand new year on the right foot at the Seasonal Tastes
with our selection of delicacies and uplift your soul by
getting 10% discount on SPA treatment this New Year. You
will run out of time before you run out of good choices at
the Westin Dhaka.
Also, Guests can cherish the New Year holidays by
booking a deluxe room at Tk. 9,999 on December 31 and
can enjoy 50% discount on buffet lunch on 1st January,
2015. With the warming aroma delicious foods and
hearty roaring log fires surrounded by beautifully
decorated Christmas trees, The Westin Dhaka provides the
perfect setting to your Christmas and New Year.
93
WORD OF MOUTH
SSG marks five years of
partnership with
Kawamura:
NSU YES! Presents Masters of Ideation 2014
NSU Young Entrepreneurs’ Society (YES!) is going to organize its signature
event ‘Masters of Ideation’ for the third time this year. The event- which
came to life in 2012-comprises of two phases, the intra NSU round and the
Nationwide Inter University round. Masters of Ideation is a Business
Strategy based, case-solving competition aimed at creating a platform to
attract, hone and nurture undergraduate students with talent for solving
complex, real-life situations faced in today’s business arena. The teams will
be judged by eminent corporate personalities from Bangladesh. This year,
the participating teams hail from renowned universities all over
Bangladesh. Of the 40- odd teams participating this year, only six teams will
go through to the final round for a chance to become ‘Master of Ideation’.
This exclusive event is hosted by North South University and organized by
YES!, the only business club of North South University. Since its inception
in 1994, YES! has strived to develop business students of the nation and
prepare them for the professional world through organizing events with
far-reaching implications. YES! Has gained prominence in the student
community for its signature brands- ‘Ad Maker Bangladesh’, ‘Masters of
Ideation’ and ‘NSUers Meet Corporate Icons’. YES! Strives to create, nurture
and promote entrepreneurial mindsets among the young generation of
Bangladesh. Over the years, they have succeeded in creating sensation in
the undergraduate business arena through their multifaceted events.
All events hosted by YES! are unique and represent different fields of
expertise. ‘Masters of Ideation’ gives students a taste of real-life business
scenarios through case analysis and strategy evaluation; Ad Maker
Bangladesh exposes undergraduates from all over the nation to the
challenges of today’s marketing world; ‘NSUers Meet Corporate Icons’ is
aimed at giving the students of North South University a platform to
connect with and experience corporate bigwigs from all over the nation.
94
Through a corporate gathering, SSG
(Super Star Group) celebrated five years
of partnership with Kawamura Electric
Inc.
Japan.
Mohammed
Ibrahim,
Managing Director and CEO of SSG
(Super Star Group) handed over the
crests of honor to Ryoichi Arima,
President, Aftab Mahmud Khurshid, CMO
of Super Star Group along with other
Kawamura delegates in presence of
corporate clients and high officials of
SSG.
SCB Wins The Banker
Awards 2014
Standard Chartered Bank Bangladesh
has been awarded the prestigious ‘Bank
of the Year’ award at The Banker Awards
2014. The award was handed over to
Abrar A Anwar, Head of Corporate &
Institutional Clients of Standard
Chartered Bangladesh at a grand gala
dinner program held recently in London.
While receiving the award Anwar said,
‘we are delighted to receive this award
in 3 consecutive years which is a
testimony of our commitment to serve
our clients in this market consistently
over so many years and we are proud to
be able to make positive contributions
in Bangladesh.’
In total the Bank has won this
prestigious award 4 times in years
2014, 2013, 2012 and 2010. The Banker
is the world's premier banking and
finance resource. Read in over 180
countries around the world, The Banker
is the key source of data and analysis
for the industry.
January 2015
ICE BusinessTimes
ESSAY
CORPORATE HUNTERS
OR PARTICIPATORY
ORGANISATIONS?
Navigating into the Future
–A Corporate Approach
By SM Zakaria
Navigation in high seas involves a
process of constant and precise
determination of the position of a
ship in the endless expanse of water.
The objective of this exercise is
firstly, to get the ship to reach the
final destination of the voyage and
secondly, to manage the risks– that
may emerge out of the conditions
surrounding the position of the
vessel – in order to ensure a safe
passage to the pre-set destination.
Two things appear to hold
paramount importance in the
voyage – (1) reaching the
destination;
in
other
words,
achieving the pre-set objective, and
ICE BusinessTimes
January 2015
(2) safety of man and material.
In business, corporate bodies are
normally expected to operate as
going-concerns,
meaning
the
business entity will not die out in
the foresee-able future and shall
continue operation long enough to
utilise all its assets earning profits
and benefits. It is only ongoing
concern
assumption
that
entrepreneurs embark on certain
business. Under this assumption, a
business entity is viewed to hold the
potential to run for a reasonable
time in order for achieving the
objectives on which it came into
existence. The going-concern
assumption
warrants
every
corporate house to undertake plans,
strategies and actions that ensure
sustainability.
What does sustainability mean?
Establishment and operation of a
business
entity
requires
employment
of
factors
of
production: land, labour, capital and
organisation – all these elements
entail certain expenditures; some
are fixed and some are recurrent.
The going concern assumption
requires that these expenditures be
recovered with expected profits over
a reasonable period of time. In the
event a company is successful in
doing so, that becomes sustainable.
The pursuit of recovery of deployed
funds together with profits calls for
constant adjustments in the
portfolio of activities executed. In
effect, a company or a corporate
body navigates into the future from
the day it starts performing or
sailing. In the contemporary world
of highly complex, competitive and
transformational
trade
and
commerce, Corporate Navigation is
equally volatile and delicate. As in
ocean
navigation,
corporate
navigation warrants year-to-year
Passage Planning mapping out as to
what course the Corporate Ship will
follow and how the Corporate
95
ESSAY
Voyage
will
continue.
This
necessitates Corporate Weather
Forecasting
and
Corporate
Positioning at regular intervals.
Corporate Weather Forecasting is a
daunting job and involves collection
of all sorts of information – taking
the entity to be a manufacturing
establishment: (1) demand of
related products, (2) supply of the
products, (3) production capacity,
(4) marketing and selling capacity,
(5) capacity and nature of
distribution network, (6) financial
capacity
and
availability
of
resources
and
accompanying
conditions, (7) availability of raw
materials and inputs, (8) availability
of spare parts, (9) availability of
energy and power, (10) availability
of labour, (11) nature and changes
in promotional exercises in the
market, (12) fluctuation in costs of
materials, labour, utilities, (13)
fluctuation in administrative and
marketing
costs,
(14)
price
variations, (15) policy shifts at
national and international circles,
(16) political trends, (17) changes in
tariff and taxes, (18) international
atmosphere
concerning
technological
developments,
strategic polarisations and threats
of sanctions and wars, (19) changes
in infrastructural conditions, (20)
speculated changes in natural
environment, where applicable, and
etc.
Collection, scrutiny, processing,
analysis of these information and
then drawing inferences and
conclusions
viewed
against
corporate objectives provide the
framework of Corporate Weather
Forecasting. Once the forecasting
function is completed, Corporate
Passage Planning can commence.
The Passage Plan includes two
components: (1) The Plan - laying
out specific statements of activities
to be undertaken during the plan
period substantiated by reasons and
objectives, (2) Budget – for execution
of the plan.
The Passage Planning method
includes five components: appraisal,
planning, execution, monitoring &
96
evaluation, and adjustments. The
appraisal
component
involves
collection, processing and analysis
of the above information for the
purpose
of
ascertaining
the
Corporate Position in the internal
and external environments. The
planning function deals with
preparation
of
statements
mentioning sequential and parallel
actions with strategies for execution
which represents the Corporate
Voyage Plan. Alongside planning
activities, an affordable budget is
prepared for meeting the financial
requirements for execution of the
plan. The third part of the planning
process is translating the voyage
plan into actions. In the fourth
stage, as the Corporate Ship cruises
through
the
uncertain
and
tumultuous oceans of business,
constant monitoring and evaluation
tasks are carried out to identify and
locate fault lines that pose risks of
losses to Corporate Vault and
Corporate Goodwill. In the fifth
stage, corporations take corrective
steps and modify the Corporate
Voyage Plan and re-position the
Corporate Ship for a safe and
profitable voyage.
Without a definite plan adjusted
with
changes
in
business
environment posing risks and
promising profits from time to time,
a corporate house is prone to cruise
like radar-less ship in an ocean
always pregnant with uncertainties
and dangers. Time bound plans are
safety valves that suggest changes
in the courses of corporations and
ensure benefits avoiding risks. The
plans make corporate objectives
visible
to
the
corporate
functionaries, make them liable for
working hard to achieve set
objectives
and
revamp
a
participatory environment in the
organisation which puts all of them
on a same platform for securing a
same goal.
Over the last three decades, some
corporate houses have been seen to
grow in Bangladesh. They owe their
birth and lifeline to three major
reasons, among others: (1) the
millions of poor people, mostly
lightweight women who brought
about an industrial revolution in the
country
by
offering
labour,
astoundingly cheaper than the
world average, (2) millions of poor
people, mostly heavyweight men
offering hard labour overseas at
cheaper costs than the world
average and remitting foreign
currency needed to shop for
machinery and equipment which
moved the industrial revolution, (3)
the easy capital gains that ensued as
a result of the rise of the garment
industry and the exodus in flocks of
poor people to foreign countries as
odd-job-performers.
These corporate groups are largely
family firms managed by the
founder and his kith and kin. This
left little opportunity for scientific
and participatory management
systems as practiced in western
countries, The easy-go phenomenon
of the export market - due mainly to
the cheap-labour factor and the
high-tech factor that discourage the
western countries to manufacture
garment and textile products
–perhaps serves as an incentive for
local groups to turn back on
systematic planning and budgeting
for pursuing business activities.
Excepting a very few, our corporate
houses are still operated by either a
single finger or in concert with the
other fingers of the same hand, more
in similarity with a primitive hunter
who hunted himself using an arrow
seeing with his own eyes with no
room for other eyes. Most of the
Bangladeshi corporate bodies are
still observed to be performing as
lone Corporate Hunters, NOT as
participatory
organisations
preparing and following plans and
budgets
through
organised
collective works. But, the world
scenario is transforming fast and
putting intensified pressure on the
local organisations to adopt modern
business tools and techniques; more
important than that is the
replacement of the old guards by
younger
Bangladeshis
who
understand the latest lexicon.
January 2015
ICE BusinessTimes