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Letter of Transmittal

Date: 7/1/2016
Prof. Md. Muinuddin Khan
Course Instructor,
Faculty of Business Studies,
ASA University Bangladesh.
Subject: Submission of Term paper

Honorable Sir,
With great respect, it is to inform you that we have finally completed the Term paper on
Challenges of project management in Bangladesh A SWOT Analysis. You asked us to make a
term paper a relevant part of the course. To make this report, however, we gathered what we
believe to be the most complete information available. Much of the operating information comes
from secondary research. The remaining data are from the primary research. Only our analysis of
these data are subjective. We would like to thank you very much for providing us such a scope to
experience these practical situations. Ultimately, we would like to say that we have tried a lot to
do our best in spite of various limitations. We desired and endeavored to make this paper a
complete one. Therefore, we hope that this will meet the standard of your judgement.
Thanking you for your kind supervision.
Sincerely yours,
Badhan Kumer Bormon

Acknowledgement

It took us approximately one month to prepare the report. During this period, we came across
many individuals who directly and indirectly helped us at various stages of our work. First of all,
we would like to thank our honorable course teacher Prof. Md. Muinuddin Khan, who
assigned us for preparing a Term- paper on Business Plan as the part of our course objective. To
complete the report we need some helps from different sources. For preparing the report, we took
help from the class lectures, different books on management, finance, accounting etc. So, we
gratefully acknowledge our honorable course teacher for his class lectures, important and
valuable suggestions and advice as well. As well as, we are very greatful to the writers of those
books. We like to take the opportunity to express our heartfelt thanks to the Faculty of Business
Studies, ASA University Bangladesh.

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Table of Content
Contents
Letter of Transmittal........................................................................................................................i
Acknowledgement...........................................................................................................................ii
Table of Contents................................................................................................................... iii-vii
Executive Summery.....................................................................................................................viii
Chapter 01
Introduction to Project Management

Brief history of project management

Projects from prehistory to Victorian times (before 1900) 3


1900 to 1949....................................................................................................................... 3
1950 to 1969....................................................................................................................... 4
1970 to 1979....................................................................................................................... 4
1980 to 1989....................................................................................................................... 5
1990 to the present day...................................................................................................... 6

Chapter 02
The Importance of Project Management in Bangladesh economic
Cost-Effectiveness 9
Better Productivity9
Minimization of Risks

10

Accomplishing Predetermined Goals


Organizational Change
Cost Savings

10

10

10

Economic Development

11

Resource Management

11

GDP Growth 11
Standard of living

12

Optimizing Resource Utilization 12


Vital Role of Project Managers 13
Excellent product quality 13

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Adequate communication13
Reducing risks

14

Strategic objectives and goals 14


Crisis Management

14

Different types of projects

15

Type 1 projects: civil engineering, construction, petrochemical, mining and quarrying.....15


Type 2 projects: manufacturing..........................................................................................16
Type 3 projects: IT projects and projects associated with management change................16
Type 4 projects: projects for pure scientific research.........................................................17
Challenges of project management in Bangladesh 18
Positive factor (Strengths and Opportunities):...................................................................18
Rental power station

21

Chapter 03
SWOT Analysis on Project Management
22-63
Strengths......................................................................................................................
....................... 24-31
Weaknesses ................................................................................................................
........................31- 48
Opportunities................................................................................................................
....................... 48-55
Threats ........................................................................................................................
..........................56-63
Chapter 04
Performance of
ADP ..............................................................................................................................
...66
Chapter 05
.....................................................................................................................................
....66-104
Foreign Direct Investment (FDI) 67
Introduction....................................................................................................................... 68
Necessity of FDI for a country:........................................................................................... 69

Foreign investment opportunity:........................................................................................69


An objective assessment of environment by a foreign investor for his decision making
process:............................................................................................................................. 69
A review of MNCs activities related to FDI:........................................................................70
Revenue Related Motives:...............................................................................................70
Attract new sources of demand:........................................................................................70
Enter profitable markets.................................................................................................... 71
Exploit monopolistic advantage......................................................................................... 71
React to trade restrictions.................................................................................................71
Diversify internationally..................................................................................................... 71
Cost Related Motives:...................................................................................................... 71
Fully benefit from economies of scale................................................................................72
Use foreign factors of production.......................................................................................72
Use foreign raw materials.................................................................................................. 72
Use foreign technology...................................................................................................... 72
React to exchange rate movements..................................................................................72
Comparing Benefits of FDI among countries:.....................................................................73
Host Government views of FDI:..........................................................................................73
Barriers that protect local firms or consumers:..................................................................73
Impact of the FDI decision on an MNC value:.....................................................................74
Significance of foreign investment in Bangladesh:............................................................74
The major incentives for foreign direct investment in Bangladesh are:............................. 74
FDI and Bangladesh:.......................................................................................................... 75
Capitals out flow on the basis of the following sector are as follows:.................................76
Bangladesh Status:............................................................................................................ 77
Foreign Private Investment Projects Registrar with Bangladesh:........................................79
Recent FDI flows over the world:.......................................................................................80
Flow of FDI in South Asia:..................................................................................................81
FDI Inflow by south Asian countries...................................................................................81
Structure & Objectives:...................................................................................................... 82
Functions & Facilities:........................................................................................................ 82
Business set up at a Glance:..............................................................................................84
Terms and Condition of BOI:............................................................................................... 84
The FDI census in Bangladesh:..........................................................................................85
Summary of FDI inflow by components:.............................................................................86

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Sectoral Distribution of FDI:............................................................................................... 88


Trends of FDI Inflow by Sources:........................................................................................88
Investment in EPZs:.......................................................................................................... 91
Investment & Export.......................................................................................................... 91
Major conclusion from the study of FDI inflow in Bangladesh:........................................... 93
Future of FDI in Bangladesh............................................................................................... 94
Extent of the barriers: Policy legislation and implementation............................................95
Cost of inefficiency is high indeed.....................................................................................95
Corruption is a disguised form of taxation.........................................................................96
Policy discrepancy............................................................................................................. 96
Differential treatment........................................................................................................ 96
One stop service of BOI..................................................................................................... 96
Dictated regulatory authority.............................................................................................97
Legal paradox.................................................................................................................... 97
Protection of Intellectual Property Rights (IPR)...................................................................97
Lawsuits..................................................................................................................................
.................................97
Hassles in implementation................................................................................................. 98
Discretionary authority of tax officials...............................................................................98
Registration complexity..................................................................................................... 98
Lack of coordination among state entities.........................................................................98
Fiscal policy changes......................................................................................................... 98
Lengthy customs processing.............................................................................................. 99
Infrastructure..................................................................................................................... 99
Restricted telecommunication access................................................................................99
Power supply..................................................................................................................... 99
Expensive port................................................................................................................. 100
Impact of FDI Barriers on MNCs:.....................................................................................100
Experience of BOC Bangladesh Ltd..................................................................................100
Experience of Siemens Bangladesh Ltd...........................................................................100
Recommendation:............................................................................................................ 101
Ensuring good governance.............................................................................................. 101
Accountability and transparency......................................................................................101
Co-ordination among state agencies...............................................................................102
Strengthening the regulatory authority...........................................................................102

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Rightsizing the government.............................................................................................102


Judicial and legal reforms.................................................................................................102
Tackling corruption........................................................................................................... 103
Fiscal reform.................................................................................................................... 103
Infrastructure reform....................................................................................................... 103

Chapter 06
Conclusion

106

Chapter 07
Recommendation ........................................................................................................
...........................108
Chapter 08
References ...................................................................................................................
............................110

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