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International Operation Of A Multinational Company (Banglalink)

3515 words - 15 pages

Table of Contents

Introduction 1

The reasons behind choosing Bangladesh 2

While entering problems faced by Banglalink 4

Industry analysis 5

Operational obstacles faced by the company 8

Entry Strategy 8

Internationalization strategy pursued by the company 10

Possible Strategy Overview 10

Current Environment 11

Conclusion 12

Reference 12

Introduction

Today, telecommunication is one of the major parts of life. Nowadays, the phone is not only used for making calls, among many other functions it’s used for communicating through text-messages and so called multi-media messages, as well as to connect us to the ...view middle of the document...

In a word, Banglalink holds a strong position in the competitive telecom market.

The reasons behind choosing Bangladesh

To find the reason we do a PEST analysis of Bangladesh.

Political Analysis: Bangladesh Government follows foreign investment policies actively. It has passed a number of policies in the budget to attract the foreign investors. The government also set up numerous export processing zones to attract foreign investment. There are no differences between foreign and domestic private investors concerning investment inducements or export and import policies. Inducements for investors include 100% ownership in most sectors, tax holidays, reduced import duties on capital machinery and spares, duty free imports for 100% exporters and tax exemptions. There is also existing legislation which gives the security to the foreign investors. They are: Patent and Design Act of 1911, Patent and Design Rule of 1933, Trademark Act of 1940, Copyright Act of 1999.

Economic Analysis: The economy of Bangladesh is constituted by that of a developing country. Its per capita income in the outgoing fiscal year 2012-2013 is $923 (adjusted by purchasing power parity which is $85 higher than 2011-2012.[1] Significantly lower than India, Pakistan and also lower than the world average $12500 (2012 est.)[2]. According to the graduation by the international Monetary Fund, Bangladesh ranked as the 58th largest economy in the world in 2012.[3] With a GDP of $ 111.9 billion and the economy has grown at the rate of 6.30% p.a. from the previous year.[4] More than half of the GDP belongs to the service sector; nearly half of Bangladeshis are employed in the agriculture sector, with RMG, fish, vegetables, leather and leather goods, ceramics, rice as other important produce.

Social analysis: Companies are facing the challenges of adapting effectively to the changing environment in the context of globalization and in particular in the export sector in Bangladesh. Although Consumer Rights Movement, enforcement of government   regulations and a structured view regarding the economic importance of Social responsibility  are not yet so widespread in the corporate world in Bangladesh, companies have gradually attaching more importance to Social responsibility in the local market as well. They are increasingly aware that Social responsibility can be of direct economic value.  Companies can contribute to social and environmental objectives, through integrating Social responsibility as a strategic investment into their core business strategy, management instruments and operations.   This is an investment, not a cost, much like quality management.  So, business organizations can thereby have an inclusive financial, commercial and social approach, leading to a long term strategy minimizing risks linked to uncertainty.
Technological: The   need   for   faster   technological   development   is   increasingly   felt   in Bangladesh. Development...

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