Assignment: Strategic Management Process of Karnaphuli

Automobiles Limited

Introduction-
Karnaphuli Group was established in 1954 and have grown into a multifaceted business that
supplies a broad range of services and operates in several sectors. The group's guiding principles
includes competence, integrity, honesty, teamwork, innovation, and faith. Karnaphuli
Automobiles Limited, a concern of Karnaphuli Group is committed to serve the nation by
considering the high demand of quality lubricants. Karnaphuli Automobiles Limited has partnered
with Abu Dhabi National Oil Company (ADNOC) to meet the nation's high demand for quality
lubricants, offering a wide range of Voyager lubricants in various categories for automotive,
marine, and industrial applications. Karnaphuli Automobiles Limited uses strategic management
to succeed in the fast-paced business climate of Bangladesh. The organization recognizes
shortcomings, take advantage of outside opportunities, and build on internal strengths by clearly
articulating its vision, mission, and objectives. Karnaphuli Automobiles Limited identifies the risks
and creating proactive countermeasures, strategic analysis eventually empowers to obtain a long-
term competitive edge in the Bangladeshi market.

Strategic Management Process-

Organizations employ strategic management as an ongoing endeavor for determining their long-
term direction, create plans to achieve goals, and guarantee successful implementation in the car
industry of Bangladesh, Karnaphuli Automobiles Ltd. (KAL) relies heavily on strategic
management. Below is a summary of its main elements:

Vision and Mission-

Vision-
Our Vision is to become a leading contributor in Bangladesh economy, emerging as leading player
in Lubricant Industry. We strive to become a consistent and a major shareholder in lubricant
industry in Automotive and Industrial lubes. Also, we want to make long-term difference in our
industry and earn the trust of our partners and shareholders.

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Mission-
Our Mission is to be a dynamic, profitable, and consistent growth-oriented company through
market leadership. Maximizing excellence in quality & service to ensure attractive returns to
Shareholders. Customer satisfaction, providing high quality products and services and developing
a bridge between us and international brands as well as remaining a decent corporate citizen in all
aspects of its corporate social responsibility.

Objectives-
Any company needs objectives because they give it a clear direction and quantifiable targets to
help it realize its vision. There are various kinds of objectives, and each has a distinct function:

Types of Objectives-
1. Short-Term Objectives: Short-term objectives refer to anything that an organization attempts
at accomplishing in a short amount of time, frequently a year. A fresh marketing initiative, an
eleven percent rise overall sales per month, or a five percent reduction in production costs are a
few instances.
2. Long-Term Objectives: Long-term objectives are ones that should be attained over a long
period of time, frequently three to five years or longer. A few instances are achieving a 20% profit
margin, eliminating debt by 10%, and raising annual revenues by 15%.
3. Financial objectives: Financial performance goals, such as increasing revenues, earnings, or
shareholder value, are the foundation of financial objectives.
4. Non-Financial Objectives: The non-financial factors that affect an organization's performance,
such as innovation, social responsibility, employee engagement, and satisfaction with customers,
are the target of non-financial objectives. As an example, consider increasing staff retention rates,
eliminating carbon footprints, boosting customer satisfaction stages, ranging and improving
product quality.

Karnaphuli Automobiles Limited’s Objectives-

With a focus on expanding the lubricants sector and strengthening Bangladesh's economy,
Karnaphuli Automobiles Limited aims to making substantial strides in the automotive spare parts
the consumer. The objective is to speed up delivery times and enhance supply chain performance
by means of investments in storage facilities and transportation. Additionally, they will prioritize
offering top-notch customer support, which will include thorough post-purchase services and

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technical support following the transaction. In order to lessen their influence on the environment,
they will also use sustainable production and distribution techniques.

Strategy Formulation-
Strategic Approaches for Companies-
One of three primary strategies is what businesses may apply to get an edge over their rivals:
1. Cost Leadership: This strategy focuses on reducing operating along with manufacturing cost
while striving to deliver the most competitive rates.
2. Differentiation: Here, organizations aspire at standing out by offering unique features,
outstanding quality, or outstanding customer service.
3. Focus: Businesses that use this tactic focus on a certain market niche with distinct
requirements. They become highly specialized in catering to that niche, offering tailored
products or services. This approach is effective in fragmented industries with diverse customer
needs.

Karnaphuli Automobiles Limited Strategic Approaches-

Karnaphuli Automobiles Limited operates in the Bangladeshi automobile industry, they have been
employing the below approaches-
1. Cost Leadership: Concentrating on providing the market's most affordable lubricants.
2. Differentiation: Emphasizing unique characteristics like improved effectiveness or eco-
friendly lubricants.
3. Focus: Concentrating on a specific market segment, such as owners of cost-prohibitive
automobiles or motorbikes.

SWOT Analysis of Karnaphuli Automobiles Limited in Bangladesh-

1. Strengths-
➢ Brand Recognition: For many years, Karnaphuli Automobiles Limited (KAL) has been a
widely recognized automaker in Bangladesh, which earned these individuals a solid standing
as a brand and a loyal customer base.
➢ Distribution Network: KAL has a broad spectrum of customers since it most likely maintain
a well-established distribution network throughout Bangladesh.
➢ Government Support: The government of Bangladesh provides assistance to the local car
sector, which would be advantageous to KAL.

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➢ Partnership: KAL gets access to new markets, technology, and expertise through partnerships
with foreign automakers.
➢ Customer Service: Karnaphuli Automobiles Limited satisfies consumer with exemplary
customer service, which includes immediate responses and reliable counsel. Their committed
team is always it to support you with any inquiries or issues you might have.
2. Weaknesses-
➢ Limited Product Range: KAL might offer a limited range of vehicles compared to
international competitors.
➢ Lack of Economies of Scale: When it comes to economies of scale, KAL may have challenges
in comparison to global behemoths, which could result in increased production expenses.
➢ Financing Options: Customers' narrow choices for financing in against competitors that offer
uncomplicated financing may impact sales.
3. Opportunities-
➢ Growing Automobile Market: The expanding economy of Bangladesh is probably going to
mean more people needing cars, which is good for KAL.
➢ Focus on Local Assembly: Government initiatives promoting local assembly could create
opportunities for KAL.
➢ Strategic Partnerships: Karnaphuli Automobiles Limited's market position can be
considerably strengthened and sustained growth can be fostered through strategic alliances
with foreign automakers.
4. Threats-
➢ Competition: Competition from foreign automakers joining the Bangladeshi market has
increased.
➢ Rising Fuel Prices: Fuel price hikes could decrease consumer interest in personal vehicles for
Karnaphuli Automobiles Limited in Bangladesh, potentially leading to alternative
transportation options like public transit or electric vehicles. To maintain consumer interest,
Karnaphuli should promote fuel-efficient models.
➢ Political Instability: Karnaphuli Automobiles Limited's business activities may be hampered
by the political unrest in Bangladesh, which may result in strikes, traffic jams, and unclear

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 regulations. Karnaphuli needs to diversify its supply networks and have backup plans in order
to reduce risk.

Strategy Implementation of Karnaphuli Automobiles Limited

(KAL) in Bangladesh-
A multifaceted approach (e.g., increasing market share) into quantifiable targets for each
department is to concentrate on translating strategy into action plans, assigning resources, and
department alignment.
➢ Develop Action Plans: KAL develops action plans for each department, identify the specific
activities to achieve objectives. They develop timelines and resource allocation for each
activity.
➢ Resource Allocation: KAL assess the resources for each action plan. They distribute resources
among departments in an effective manner according to their goals and requirements.
➢ Communication and Change Management: KAL has effective communication which makes
sure that all organizational levels are aware of the overarching strategy, action plans, and goals.
They set into effective training programs to give workers the skills and knowledge.
➢ Performance Monitoring and Evaluation: KAL builds KPIs (Key Performance Indicators)
which monitor concentrates on accomplishment.
Tools and Techniques for Implementation-
➢ Project Management Tools: To manage resources, keep track of deadlines, facilitate
departmental collaboration, KAL uses project management software.
➢ Balanced Scorecard: KAL constructs a balanced scorecard for tracking plan-compliant non-
financial and economic achievement metrics.
➢ Performance Management System: KAL implements a system of performance management
that offers rewards to employees who accomplish organizational goals.
➢ Focus on Sustainability: KAL concentrates on environmentally friendly and fuel-efficient
automobiles for Bangladesh's environmental objectives and draw in eco-aware consumers.
➢ Skilling Development: To solve the scarcity of skilled workers, KAL has funded skill-building
programs.

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Strategy Evaluation of Karnaphuli Automobiles Limited (KAL)
➢ Benefits of the Data-driven Evaluation Approach: KAL follows the data-driven evaluation
approach involving market share, revenue growth, customer satisfaction, and brand awareness.
➢ Actionable Insights: KAL frequently monitoring yields timely insights, allowing and modify
the plan as necessary.
➢ Long-Term Vision: In order to determine whether the strategy is in line, KAL always monitor
long-term goals for growth and market positioning.
➢ Recommendations for Improvement Benchmarking: KAL compares the performance
measures on a regular basis with those of major competitors in the Bangladeshi market as well.

Conclusion-
In conclusion, Karnaphuli automobiles Limited has been successfully navigates the increasingly
competitive Bangladeshi market involves a close evaluation of their strategic management
approach. A comprehensive SWOT analysis delivers guidance, and a well defined vision, mission,
and objectives assist them to maximize their strengths and opportunities while minimizing their
weaknesses and threats.

Reference-
➢ Thompson Jr., A. A., Strickland III, A. J., & Gamble, J. E. (2016). Crafting & executing
strategy: The quest for competitive advantage (20th ed.). McGraw-Hill Education.
➢ Grant, R. M. (2013). Contemporary strategy analysis (9th ed.). Wiley.
➢ Fredrickson, E., & Hambrick, D. C. (2000). Moving strategy theory forward: The evolution of
strategic process research. Strategic Management Journal, 21(10), 1043-1077.
➢ Article Detail. (n.d.). International Journal of Advanced Research. Retrieved July 2, 2024, from
https://www.journalijar.com/article/26336/strategic-management-practices-and-performance-
of-the-sme-s-in-bangladesh/.
➢ Karnaphuli Automobiles Ltd. | Karnaphuli Auto Mobile. (n.d.). Karnaphuliautomobiles.com.
Retrieved July 2, 2024, from https://karnaphuliautomobiles.com/.

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