Assignment

On

American International University Bangladesh

American International University Bangladesh

Faculty of Business Administration, EMBA Program

Strategic management of ACI Limited

Submitted To:
S.M. Zakaria
Faculty, American International University Bangladesh

Submitted By:
Mohammad Hossain Babu, ID: 21-92021-1 ,Spring 2020-21

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 Executive Summary

ACI Limited is one of the leading manufacturing company in Bangladesh. This company
captures the whole Bangladeshi market and the international market by their good practice of
strategic management. By this assignment, many strategic practice or theory is represented. This
guides all other management processes in a systematic, coherent, and effective approach. It is a
continuous activity of assessing the strategic direction of the organization and its business and
making decisions on a day-to-day basis addressing changing circumstances. ACI Limited
presents their strategic planning at first that can help them to identify their goal, mission and
objective. Through the strategic management the company can identify its strength, weakness,
opportunity and threats that can make the company more competitive in the market. Then the
company’s growth mostly depends on its external environment that include PEST analysis and
he internal environment which includes the value chain analysis. ACI Limited takes the better
position by their core competencies and ensure safety of it products and operations for the
environment by using standards of environmental safety, which are scientifically sustainable and
commonly acceptable.

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Serial Particulars Page No.
No.

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 1 Introduction 4
1.1 Objective 4
1.2 Methodology 5
1.3 Limitation 5
2 Overview of the company 6
2.1 Background 6
2.2 Mission 7
2.3 Vision 7
2.4 Values 7
3 Strategic Management practice of ACI Limited 8
3.1 Strategic Planning of ACI 8
3.2 Strategic Business Units 9
3.3 Corporate Social Responsibility 10-11
3.4 Hierarchy Level of Strategy 12-14
4 Five force analysis 15-16
5 External Environment Analysis 17
5.1 PEST Analysis 17
6 Internal Environmental Analysis 18
6.1 Value Chain Analysis 19
6.1.1 ACI inbound and outbound logistics 20
6.2 Supporting Activates 20
7 Strategy Evaluation 21
8 Competition 21
8.1 Competitor Profiling 21
8.2 Core Competencies 22
9 SWAT Analysis 23
10 Conclusion 24
11 References 25
1.Introduction
ACI was established as the subsidiary of Imperial Chemical Industries (ICI) in the then East Pakistan
in 1968. After independence, the company has been incorporated in Bangladesh on the 24th of
January 1973 as ICI Bangladesh Manufacturers Limited and as Public Limited Company. This
Company also obtained listing with Dhaka Stock Exchange on 28 December 1976 and its first
trading of shares took place on 9 March 1994. Later on, 5 May, 1992, ICI plc divested 70% of its
shareholding to local management. Subsequently the company was registered in the name of
Advanced Chemical Industries Limited. Listing with Chittagong Stock Exchange was made on 22
October 1995.

1.1Objectives

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The core objective of the study is to find out the credit system of tractor of different brands.
However, the objectives of the study can be described under the following head:
Broad Objective: The broad objective of the assignment on the strategic practice and theory of
ACI Limited.
Specific Objectives: With a view to fulfilling the broad objective some specific objectives must
be satisfied. The specific objectives of this study are as follows:
 Analyzing the practice of strategic management of ACI Limited.
 To illustrate the strategic plan of the company.
 To represent the porters five forces of model.
 Identifying the strengths and weaknesses of ACI Ltd.
 Analyzing the different level of strategies.
 To illustrate the PEST Analysis of ACI.

1.2 Methodology
In order to making this formal and comprehensive report we have gone through a marvelous
experience while collecting and combining all information from Primary and Secondary Data
source.
Primary Data Source:
The assignment aims to provide information on the strategic management practice or theory
followed by the ACI Limited.

Secondary Data Source:

 Visiting the official website of ACI Limited.
 Annual report, organizational brochure, booklet, various books, lip let etc. regarding
present status facilities.
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  Relevant journals and articles available in website.

1.3 Limitation
To complete this assignment, I have faced some problem.

 Shortage of time
 Limitation of related with the organization
 Difficulty in collecting data.
 Confidential data

2. Overview of the Company

2.1 Background

ACI Limited was established as the subsidiary of Imperial Chemical Industries (ICI) in the then
East Pakistan in 1968. After independence, the company was incorporated in Bangladesh in 1973
as ICI Bangladesh Manufacturers limited as a Public Limited Company. In 1992, the company
was divested to local management and the name of the company changed to Advanced Chemical
Industries (ACI) Limited. ACI inherited the rich ICI culture of product quality, customer service
and social responsibility. Initially in 1992, ACI started primarily with pharmaceutical business
with a turnover of BDT 80 million only but later the new management brought about
fundamental changes in the policies and in the year 2008 turnover grew to over BDT 7,365

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million. The Company has diversified business interest in pharmaceuticals, agricultural including
fishery & livestock and consumer brands. At present, ACI has three strategic business units
along with 11 subsidiaries, 3 joint ventures and 1 associate. ACI is a fast-growing conglomerate
that has substantial contribution in the economy of Bangladesh. In response to growing demands
of the consumers of Bangladesh, ACI has diversified its business to include wide range of
products in its portfolio. ACI has started its expansion policy by exploring and strengthening the
pharmaceuticals wing further so that it can continue giving unswerving service to the consumers
of Bangladesh. ACI is the first company in Bangladesh to achieve ISO S001 in 1995 for quality
management and the first company to achieve ISO 14000 in 2000 for environmental
management system. ACI is also the first company from Bangladesh to become the honorable
member of United Nation Global Compact. It is the only Bangladeshi company which was
declared as a notable COP (Communication on Progress) recognized by UNGC (United Nation
Global Compact). ACI has been accepted as a founding member of community of Global
Growth Companies by the World Economic Forum which is the most prestigious business
networking organization in the world.

2.2 Mission
ACI’s mission is to enrich the quality of life through responsible application of knowledge, skills
and technology. ACI is committed to the pursuit of excellence through world-class products,
innovative processes and empowered employees, to provide the highest level of satisfaction to its
customers.
2.3 Vision
 Endeavor to attain a position of leadership in each category of their businesses.

 Attain a high level of productivity in all their operations through effective and efficient
use of resources, adoption of appropriate technology and alignment with their core
competencies.
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  Developing their employees by encouraging empowerment and rewarding innovation.
 Promoting an environment for learning and personal growth of their employees.
 Providing products and services of high and consistent quality, ensuring value for money
to its customers.
 Encouraging and assisting in the qualitative improvement of the services of its suppliers
and distributors.
 Establishing harmonious relationship with the community and promote greater
environmental responsibility within its sphere of influence.
2.4 Values
● Quality: ACI always strive to provide the best possible quality for their products and
services in order to meet and exceed customer’s expectation.
● Customer Focus: ACI’s focus is always their customers. They are always to provide the
finest products and services to their customers in order to attract and retain customers.
● Fairness: ACI always attempts to maintain fairness in what they do and produce. This
helped them to gain customer’s faith and confidence and to operate successfully in the
market with their competitors.
● Transparency: ACI maintains transparency by providing the desired goods and services to
their customers and sharing their goals with their employees.
● Continuous Improvement: ACI always attempts to make improvements in their products
and services in order to meet customer’s demands and cope with the current trend. In this
way, they can compete successfully in the market in comparison to others providing the
similar kind of products and services.

3. Strategic Management practice of ACI Limited

3.1 Strategic Plan of ACI

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The Entrepreneurs and business managers of ACI are often so preoccupied with immediate
issues that they lose sight of their ultimate objectives. That is why a business review or
preparation of a strategic plan is a virtual necessity. This may not be a recipe for success, but
without it a business is much more likely to fail. A sound plan should:
 Serve as a framework for decisions or for securing support/approval.
 Provide a basis for more detailed planning.
 Explain the business to others in order to inform, motivate & involve.
 Assist benchmarking & performance monitoring.
 Stimulate change and become building block for next plan.
A strategic plan should not be confused with a business plan. The former is likely to be a (very)
short document whereas a business plan is usually a much more substantial and detailed
document. A strategic plan can provide the foundation and framework for a business plan. For
more information about business plans, refer to How to Write a Business Plan, Insights into
Business Planning and Free-Plan: Business Plan Guide & Template.
A strategic plan is not the same thing as an operational plan. The former should be visionary,
conceptual and directional in contrast to an operational plan which is likely to be shorter term,
tactical, focused, implementable and measurable. As an example, compare the process of
planning a vacation (where, when, duration, budget, who goes, how travel is all strategic issues)
with the final preparations (tasks, deadlines, funding, weather, packing, transport and so on are
all operational matters).

3.2 Strategic Business Units

 Pharmaceuticals
 Consumer Brands & Commodity Products
 Agribusinesses:
o Crop Care Public Health
o Livestock & Fisheries
o Fertilizer
o Seeds
Pharmaceuticals

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ACI carries the legacy of ICI- world renowned British Multinational in providing the people of
Bangladesh with quality medicines and healthcare products. Its state-of-the art pharmaceutical
plant represents Bangladesh's quest for a truly world class manufacturing facility. ACI's rich
heritage leads to innovative and higher value-added formulations.The comprehensive product
range of ACI pharmaceuticals include products from all major therapeutic classes and in various
dosage forms like tablet, capsule, dry powder, liquid, cream, gel, ointment, ophthalmic and inject
able. ACI Parma also has state of the art plant on Novel Drug Delivery System (NDDS). It
produces world class Modified Release drug and medicine to cater the requirement of
pharmaceutical manufacturer of domestic and international market.
It exports high quality pharmaceuticals to a good number of countries of Asia, Africa & South
America.
Consumer Brands & Commodity Products
The Consumer Brands Division boasts in having an unequivocal presence in consumers' heart
with the market leading brands like ACI Aerosol, ACI Mosquito Coil, Savlon. These are the
persistent performers in keeping the household clean and free from germs and harmful insects.
The necessity of pure food in the minds of Bangladeshi consumers especially in the commodity
food business has pushed ACI to fill up the market gap by producing commodity products such
as Salt, Flour and Spices. Now the customers of Bangladesh are ensured with 100% pure Salt,
Spice’s products and Wheat products under the brand name of "ACI Pure".ACI also represents
the world renowned product range of Colgate, Nivea, Tetley, and Godrej & Dabur in Bangladesh
through distribution and forming joint ventures.

Agribusinesses
ACI Agribusiness is the largest integrator in Bangladesh in Agriculture, Livestock and Fisheries
and deals with Crop Protection, Seed, Fertilizer, Agro machineries, and Animal Health products.
These businesses have glorified presence in Bangladesh.CC & PH supplies crop protection
chemicals, Seed supplies Hybrid Rice, vegetable and Maize seeds, Fertilizer Supplies
Micronutrient and Foliar fertilizer, Agri machineries supplies Tractors, Power Tiller and
Harvester and Animal Health supplies high quality Nutritional, Veterinary and Poultry medicines
and vaccines. ACI Agribusiness is having strong partnership with national and international R &
D companies, universities and research institutions. Before introducing any product, it is

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elaborately tested in the laboratory and farmer’s field. ACI provides solution to the farmers
through a large team of scientists & skilled professionals.

3.3 Corporate Social Responsibility

Societal Development through Educational Programs
ACI’s guiding principle in all its operations is to be a ‘responsible corporate citizen’. Thus,
Social Responsibility is a top priority for every individual at ACI. Our endeavors toward
discharging our social responsibilities have become more focused since our adoption of the
principles of the Global Compact.
Initiatives that have shown significant contribution to societal development are Continued
Medical Education (CME) for medical professionals and Children’s Education Programs.
A dedicated team of medical graduates makes up the Medical Services Department (MSD) in
ACI, which carries out CME programs termed ‘Clinical Meetings’ across Bangladesh. These are
essentially non-advertised meets of medical professionals that serve as a training and knowledge-
sharing forum, often conducted by experts on the subject. Our partners in development for these
programs are doctors, medical associations and/or departments, and various study groups. The
level of involvement of ACI in these programs may range from only sponsoring the entire
program to providing all types of services and technical support to the presenter to even
conducting the program by an MSD doctor. Support from MSD include research support for
deliberations at the meet, literature and multimedia presentation for the program, updates on new
technology and thoughts in medical fields, and even educational support to any participant in
their area of interest.
ACI has also undertaken an English Education program in Faridpur, one of the remotest districts
of Bangladesh. This provides support to teach English Language to school going children.
Outcome
Doctors in Bangladesh who are not living in the metropolitan cities have very limited access to
the Internet or any other sources of information. In order to keep them updated on the
developments in the medical practices regularly, the CME program has been proven highly
effective.
ACI believes that by promoting education of children, we are contributing to societal
development by shaping the minds of our future leaders.

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Educating the farmers, with a focus on Environment Friendly Practices
ACI has undertaken extensive programs to educate crop farmers all over rural Bangladesh in
Good Agricultural Practices. We have a team of agricultural experts working at the field level
across the country, holding a range of technical trainings and field demonstrations. Their
activities include.
 Field demonstrations on various methods of crop protection, that pose the least hazard for
the environment.
 Training on new technologies of cultivation, for higher yields and new crops
 Training to channel partners (e.g., retailers and agricultural extension workers) and third
parties (e.g., NGO workers)
ACI also has similar education programs for animal and poultry farmers. These include.
 Technical trainings on diverse aspects of farming, and on application of new technologies
 Farmers’ group meeting for sharing of learning and experience.
 Free visits to farms by veterinarians, to identify problems and give advice to individual
farmers
Outcomes
The farmers are mostly illiterate having learnt the art and science of farming by assisting their
family on the fields. Our continuous endeavors to educate farmers have given significant benefits
on three fronts:
 Raising the level of awareness among farmers on improving their agricultural output
through application of new technology, encouraging them to share experiences with
neighboring farmers and, in the long run, developing educated farmers.
 Raising the educational level and technical knowledge of channel partners and third
parties who act as advisors to the farmers.
 Most importantly, making the farmers aware of ways to protect the environment from
hazardous uses of chemicals on their farms, allowing them the opportunity for informed
decision-making.
ACI hopes to continue to play a leading role in promoting greater environmental responsibility
among farmers in Bangladesh.

3.4 Hierarchy Level of Strategy

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Functional Level Strategy

The functional level of the organization is the level of the operating divisions and departments.
ACI Limited follows different type in strategies for different department. The strategic issues at
the functional level are related to business processes and the value chain. Functional level
strategies in marketing, finance, operations, human resources, and R&D involve the development
and coordination of resources through which business unit level strategies can be executed
efficiently and effectively.

 They adopt flexible manufacturing technologies, upgrade the skills of employees through
training and perform research and development function to design products that are easy
to manufacture.
 The products of ACI are more familiar to the customer, so the company tries to innovate
new product and modify the existing product for customer attractiveness.
 They continuously innovate products, promotional activities, packaging and distribution.
This way they can respond quickly to customer demands.

Functional units of an organization are involved in higher level strategies by providing input into
the business unit level and corporate level strategy, such as providing information on resources
and capabilities on which the higher-level strategies can be based. Once the higher-level strategy
is developed, the functional units translate it into discrete action-plans that each department or
division must accomplish for the strategy to succeed.

Business Level Strategy

ACI is the popular manufacturer company that has get their success by following different
business strategies. Through the business level strategy, the company present a division, product
line, or other profit center that can be planned independently from the other business units of the
firm. At the business unit level, the strategic issues are less about the coordination of operating
units and more about developing and sustaining a competitive advantage for the goods and
services that are produced. At the business level, the strategy formulation phase deals with:
 ACI always determine their positioning in the business against rivals.

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  Anticipating changes in demand and technologies and adjusting the strategy to
accommodate them.
 The company tries to influence the nature of competition through strategic actions such
as vertical integration and through political actions such as lobbying.
 Using product features or services
 Increase market share by expanding the network Functional Level Strategies
 Focus is on efficiency, quality, innovation, and customer responsiveness.
 Focus on After Sales Service Human Resource

Corporate Level Strategy

ACI Ltd. always give emphasis on Corporate level strategy that is concerned with the selection
of businesses in which the company should compete and with the development and coordination
of that portfolio of businesses.

ACI carries out the following corporate strategies:

 defining the issues that are corporate responsibilities; these might include identifying the
overall goals of the corporation, the types of businesses in which the corporation should
be involved, and the way in which businesses will be integrated and managed.

 defining where in the corporation competition is to be localized. Take the case of

insurance: In the mid-1990's, Aetna as a corporation was clearly identified with its
commercial and property casualty insurance products. The conglomerate Textron was
not. For Textron, competition in the insurance markets took place specifically at the
business unit level, through its subsidiary, Paul Revere.

Global Level Strategies:

 ACI Limited is using multidomestic strategies because it expanded its telecom business
under different countries with different name.
 Provides different strategies for different countries depend on the people demands
Corporate Level Strategies.

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  Vertically integrated and concentrated on another field.
 They import the raw materials from the places where it is less costly, thus achieve
location economy.

4. Five force analysis

From five force analysis we can know the industry structure and the opportunity and threats. In is
conducted to know about the immediate environment. The competitive structure of ACI Ltd. can
be analyzed using Porter's five forces. This model attempts to analyze the attractiveness of
different products by considering five forces within a market. According to Porter (1980) the
likelihood of firms making profits in each industry depends on five factors:
1. Bargaining power of buyer

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The stronger the power of buyers in an industry the more likely it is that they will be able to
force down prices and reduce the profits of firms that provide the product. For ACI Limited:
 The consumer base of different product of different sector is highly disbursed throughout
Bangladesh.
 Due to High switching cost the companies can compromise on quality and price.
 Lack of awareness among customers like pricing, offerings. Etc.
 There are a few, big buyers so each one is very important to the firm This leads to low
bargaining power of buyer.
2. Bargaining power of supplier
The stronger the power of suppliers in an industry the more difficult it is for firms within
that sector to make a profit because suppliers can determine the terms and conditions on
which business is conducted. For ACI:
 The suppliers do not pose any threat of forward integration.
 Though steel forms a major input, the tractor industry is not most important customer for
steel industry
 Many numbers of suppliers are there for tractor industry.
 Switching cost from one supplier to another is less hence bargaining power of supplier is
less?
3. Threat of Entry
The extent to which barriers to entry exist. The more difficult it is for other firms to enter a
market the more likely it is that existing firms can make relatively high profits. For tractor
industry:
 The tractor industry is capital-oriented with intensive technology requirement.
 Need of a large dealer network.
 High switching cost
 Competitors are very reactive towards new entry.
 Brand loyalty of existing brands is high in tractor industry, Ex, Mahindra in rural
market.
 Up to extent the existing companies have control over the suppliers.

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  High startup capital is required Hence the barriers to entry are high. These barriers are
however moderated by 100% FDI policy.
4. Threat of substitute
This measures the ease with which buyers can switch to another product that does the same
thin. The ease of switching depends on what costs would be involved and how similar
customers perceive the alternatives to be. For tractor industry:
 There are no credible substitutes to the tractors.
 The only option available is bull-plough.
 Power-tellers very low power of substitute hence there is low threat of substitute for
tractor.
5. Rivalry
This measures the degree of competition between existing firms. The higher the degree of
rivalry the more difficult it is for existing firms to generate high profits. For tractor industry:
 The rivalry is extremely high owing to the consolidation that the industry is witnessing.
 Entry of foreign players
 Continuous technological innovation
 Less merger and acquisition of tractor industry increases rivalries.
 Opening of world market hence there is high degree of industry rivalry.

5. External Environment

5.1PESTANALYSIS

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A PEST analysis is used to identify the external forces affecting ACI Limited. This is an analysis
of ACI’s Political, Economical, Social and Technological environment. A PEST analysis
incorporating legal and environmental factors is called a PESTLE analysis.
POLITICAL
The first element of a PEST analysis is a study of political factors. Political factors influence
organizations in many ways. Political factors can create advantages and opportunities
for organizations. Conversely, they can place obligations and duties on organizations. Political
factors include the following types of instrument: - Legislation such as the minimum wage or
anti-discrimination laws. - Voluntary codes and practices- Market regulations- Trade agreements,
tariffs or restrictions- Tax levies and tax breaks- Type of government regime e.g., communist,
democratic, dictatorship Nonconformance with legislative obligations can lead to sanctions such
as fines, adverse publicity and imprisonment. Ineffective voluntary codes and practices will often
lead to governments introducing legislation to regulate the activities covered by the codes and
practices.

ECONOMICAL
The second element of a PEST analysis involves a study of economic factors. All businesses are
affected by national and global economic factors. National and global interest rate and fiscal
policy will be set around economic conditions. The climate of the economy dictates how
consumers, suppliers and other organizational stakeholders such as suppliers and creditors
behave within society. An economy undergoing recession will have high unemployment, low
spending power and low stakeholder confidence. Conversely a “booming” or growing economy
will have low unemployment, high spending power and high stakeholder confidence. A
successful organization will respond to economic conditions and stakeholder behavior. A truly
global player has to be aware of economic conditions across all borders and needs to ensure that
it employs strategies that protect and promote its business through economic conditions
throughout the world.

SOCIAL

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The third aspect of PEST focuses its attention on forces within society such as family, friends,
colleagues, neighbors’ and the media. Social forces affect our attitudes, interest s and opinions.
These forces shape who we are as people, the way we behave and ultimately what we purchase.
For example, within the UK people’s attitudes are changing towards their diet and health. As a
result, the UK is seeing an increase in the number of people joining fitness clubs and a massive
growth for the demand of organic food. Products such as Wit Fit attempt to deal with society’s
concern, about children’s lack of exercise. Population changes also have a direct impact on
organizations. Changes in the structure of a population will affect the supply and demand of
goods and services within an economy. Falling birth rates will result in decreased demand and
greater competition as the number of consumers fall. Conversely an increase in the global
population and world food shortage predictions are currently leading to calls for greater
investment in food production. Due to food shortages African countries such as Uganda are now
reconsidering their rejection of genetically modified foods.
TECHNOLOGICAL
Unsurprisingly the fourth element of PEST is technology, as you are probably aware
technological advances have greatly changed the way businesses operate. Organizations use
technology in many ways, they have1. Technology infrastructure such as the internet and other
information exchange systems including telephone2. Technology systems incorporating a
multitude of software which help them manage their business.3. Technology hardware such as
mobile phones, Blackberries, laptops, desktops, Bluetooth devices, photocopiers and fax
machines which transmit and record information. Technology has created a society which
expects instant results. This technological revolution has increased the rate at which information
is exchanged between stakeholders. A faster exchange of information can benefit businesses as
they are able to react quickly to changes within their operating environment. However, an ability
to react quickly also creates extra pressure as businesses are expected to deliver on their
promises within ever decreasing timescales. For example, the Internet is having a profound
impact on the marketing mix strategy of organizations.

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 6. Internal Environment
Value Chain Analysis
ACI Inbound and Outbound Logistics
ACI logistics is another of the company’s new and highly ambitious but unrelated businesses.
ACI logistics is in the business of owning and operating neighborhood retail stores. It would be competing with
two other successful local retail chains in the urban areas, namely Agora and Nandon, each with
about 30 stores. These chains are targeted at affluent urban centers and are limited to the two major cities in the
country. Although the concept is new in the country, these two and other smaller chains have gained a
foothold as suppliers of standard, higher quality grocery and other food products at a clean
environment and fixed price. However, the target market of high middle-class consumers is small with a
limited growth. ACI states that it has a separate clientele in mind for its chain “Swapno”, namely the
middle class who aspires for the same services but are not willing to pay high prices. Consequently, Swapno
has targeted less affluent neighborhoods with low-rent smaller stores. ACI management correctly points out that in
the grocery market; there exists huge supply chain inefficiency. There is a large gap between the price received by
the grower and the price paid by the end-buyer. Also, significant improvements can be made by standardizing the
farming, contracting, and procurement and transportation practices. While that part is true, ACI’s plans to
capture the retail grocery market are surprisingly unrealistic.

Supportive Activities
Human Resource Management
ACI HR works with a vision for creating a work-environment to foster creativity, innovation and
productivity for achieving business excellence through dynamic and dedicated people. Human
Resources are the most important asset of the organization. We identify the training needs and
provide trainings accordingly to develop the knowledge and skills of our human resources.
Thought Leadership and Team Building meetings are conducted on a regular basis. We provide
an enabling working environment to unleash the full potential of the employees and a
performance-based career progression. We have a value-based culture where dignity of the
individual is the highest priority. We believe in empowerment and delegation. We organize
different social events like Family Day, Cricket Tournament, and Badminton Tournament etc.
with an objective to strengthen the bondage among the employees. We practice modern HR
Policies and procedures for Recruitment & Selection, Manpower Planning and succession

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planning. We use a combination of qualitative aspects and Balanced Score Card for performance
appraisal. We have attractive policies regarding car loan, gratuity, provident fund and
hospitalization. We offer performance bonus, leave fare assistance, festival bonus and workers
profit participation fund during different times within a year. ACI is a place to learn, grow and
contribute for improving the quality of life of people.

Finance and Planning

ACI Finance and Planning function is the nerve center of the conglomerate. Being the nature of
the structure, ACI Finance and Planning plays the centralized role in all kinds of financial and
accounting services. Meaning it handles financial and accounting matters of not only ACI
Limited but also of all of its subsidiaries supporting the mission and vision of the Group. The
major areas of its activities include:
Commercial Department
Commercial Department of ACI is one of the most vital functional departments of the Company
which deals with the supply chain activities of ACI. In order to keep all the businesses running
flawlessly, the dedicated and hardworking employees of this department maintain a good liaison
with the customers, both national and international. The Commercial Department is consistently
achieving the best prices for the products that we purchase, ensuring enormous amount of cost
savings for the company. It offers invincible professionalism and expertise in the entire
commercial activities of ACI.
MIS Department
MIS department of ACI ensures the overall IT related supports for the company. This department
manages a smooth operation of software's, hardware trouble shooting, and business databases
related to sales and inventory. The MIS department consists of knowledgeable and skilled
programmers and software developers. MIS provides customized report and data analysis to the
management to facilitate effective decision making.
Training
Training activities of ACI is focused on transforming its human capital to achieve business
excellence by increasing the bandwidth of ACI workforce. To win present and future challenges
we identify knowledge and skill sets that are pivotal factors and we design a variety of programs
so that achieving such success by using creativity, agility, flexibility, skill diversity and IT

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technology becomes a custom. We scan external environment for comparing industry practices,
benchmark best practices and implement competency management programs to offer outstanding
services to our valued customers. Enormous and spontaneous shared efforts are made with the
strategic intent of achieving excellence in delivering customized services to meet the ever-
changing development needs of the human resources.
Strategy Evaluation

Now as against the objectives, if we go through all the strategies being mentioned earlier, then
we can see that all strategies are true reflection of the objectives being targeted by ACI Limited.
As an objective of consumer connectivity, responsive supply chain getting online computer
network with suppliers and stronger R&D department and the objective of cost efficiency is
supported by the vertical diversification in an sense that how they are outsourcing production and
going for sub-contracting with their suppliers and having more responsive and cost effective
supply chain and to achieve growth more focused strategy in case of reduction of brands, etc. So,
these strategies are true measures to achieve those objectives.

1. Suitability
2. Acceptability
3. Feasibility
Suitability
Suitability is a broad assessment of whether the strategy addresses the circumstances in which
the organization is operating. For example, the extent to which the strategy would fit with the
future trends / changes in the environment or how the strategy might exploit the core
competencies of the organization. Now if we evaluate the strategy of Uniliver Limited on these
factors that whether the strategies fit with its existing circumstances would be able to compete
with the future trends like the strategy of cost reduction and focused brands and outsourcing
production and consumer connectivity and more responsive value chain.
Acceptability
Acceptability of strategy is concerned with the expected performance outcomes such as the
returns and risk if the strategies are implemented and the extent to which it would be in line with
the expectations of the stakeholders. In case of returns, it’s pretty much assured that returns

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would definitely be enhanced when the cost would decrease, and strategies would result in better
quality products. But the elements of risk are there which could be quite significant in the case of
subcontracting, whether the suppliers would be able to meet the quality standards or not.
Feasibility
Feasibility is concerned with whether the strategy could be made to work in practice or not. And
it’s more concerned with the assessment of practicalities of resourcing and strategic capabilities
i.e., quantitative assessment, which is beyond the scope of this report, so, as an overview, all
strategies seem feasible and some of them has already been implemented as well like the
reduction in brands etc.
8. Competition

8.1 Competitor profiling

The strategic rationale of competitor profiling is powerfully simple.

Superior k n o w l e d g e o f r i v a l s o f f e r s a l e g i t i m a t e s o u r c e o f c o m p e t i t i v e
a d v a n t a g e . T h e r a w material of competitive advantage consists of offering
superior customer value in the firm’s chosen market. The definitive characteristic of
customer value is the adjective, s u p e r i o r . C u s t o m e r v a l u e i s d e f i n e d r e l a t i v e
t o r i v a l o f f e r i n g s m a k i n g c o m p e t i t o r   knowledge an intrinsic component of corporate
strategy. Profiling facilitates this strategic objective in three important ways. First,
profiling can reveal strategic weaknesses in rivals that the firm may exploit. Second, the
proactive stance of competitor profiling will allow the firm to anticipate the strategic
response of their rivals to the firm’s planned strategies, the strategies of other competing
firms, and changes in the environment. Third, this proactive knowledge will give the firms
strategic agility. Offensive strategy can be implemented more quickly in order to
exploit opportunities and capitalize on strengths. Similarly, defensive strategy can be
employed more deftly in order to counter the threat of rival firms from exploiting the firm’s own
weaknesses.

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8.2 COMPETITOR ANALYSIS
Competitor analysis in marketing and management is an assessment of the strengths and
weaknesses of current and potential competitors. This analysis provides both an offensive and
defensive strategic context through which to identify opportunities and threats.
Competitor profiling coalesces all the relevant sources of
c o m p e t i t o r   analysis into one framework in the support of efficient and effective strategy
formulation, implementation, monitoring and adjustment. Competitor analysis is an
essential part of corporate strategy. It is argued that most firms do not conduct this
type of analysis systematically enough. Instead, many enterprises operate on what is
called “informal impressions, conjectures, and intuition gained through the tidbits
of information about competitors every manager continually 13.
 
8.3 Core Competencies
There are many ACI products that exist in the Bangladesh and overseas market. Among this product some
product achieves the better position for quality product.

 The Savlon antiseptic cream that take the greater position in the whole market in
Bangladesh. There are no alternative and competitor of this product.
 ACI aerosol and aci coal are also attractive to the customer for better quality and
reasonable price.
 The agribusiness department is the height profitable sector of ACI for its good seed,
tractor other machineries.

9. SWOT Analysis

Strengths
 ACI has been able maintain its growth above the market growth.
 Market category of ACI is A
 ACI is the first company in Bangladesh to obtain certification of Quality Management
System in 1995.
 The marketing team of ACI is very efficient and effective.

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  Visionary and proficient leadership.
 Dedicated employees.
 Efficient materials management system.
 Appropriate organizational structure.
 Effective control system.
 Appropriate management style.

Weaknesses
 ROE is decreased in 2004 than the previous year.
 Rigid credit policy.
 Capitals are borrowed from bank.

Opportunities
 High potentiality in export sector
 Bargaining power of suppliers and buyers is low.
 Increasing demand of modern technology in terms of cultivation for Agribusiness.
 Large market size.
 Large size of target customer.
 Opportunity of entering new related business.
 Low entry barriers.

Threats
 The industry is highly competitive.
 Export may be reduced if world economy is affected.
 Increase in domestic competitors.
 Changes in economic factors.
 Increase in regional competition.
 Rise of substitute products.
 Increase in industry rivalry.

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9. Conclusion:
The flourishment of any organization requires combined efforts and co-operation from several
parties. Social, political and macroeconomic environment play pivotal role in this regard. But
taking human resource division the company’s betterment purpose the report surely suggest
about structuring its employee management tactics for optimizing cost, improving performance
of its work force. The framework of business laws and legal procedures should facilitate in
managing employee performance in a timely and cost-effective manner. In Bangladesh, the
establishment of a market driven private system is linked to achieving higher employment,
increased productivity, more efficient use of resources and more rapid economic growth. But the
ACI Limited still faces extreme challenges competing with other multinational companies. ACI
Agribusiness is contributing the country and serving the nation in different ways. If it can uphold
it’s much toward advancement, it will be able to set a role model in our country as a leading
company.

Reference

 www.aci-bd.com
 https://www.scribd.com/doc/22520364/Strategic-Management

 www.google.com

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