Case Study of Strategic Management in the ACI limited

Magnificent Chemical Industries (ICI) Bangladesh Manufacturers Limited is a subsidiary of renowned

multinational pharmaceutical ICI Plc., established in Dhaka in 1973 and was a listed Public Limited
Company under Dhaka Stock Exchange on 1976. In 1992, ICI Plc. divested its shareholding through a local
management takeover and the company name was changed to Advanced Chemical Industries (ACI) Limited.

The mission of the ACI‟s is to enrich the quality of life through responsible application of knowledge, skills
and technology, to innovative processes and empowered employees, to provide the highest level of
satisfaction to its customers. The vision is to 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.

Environmental factors are affect the company like social, political, technological and economic factors.is
overwhelming evidence that human activity is contributing to climate change. The company has own
strategy to achieve objectives and develop a series of actions.

There are some strengths ACI such as it has been able to maintain its growth above the market growth, 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. Besides strength there includes some weaknesses of
ACI like ROE is decreased in 2004 than the previous year, rigid credit policy. Capitals are borrowed from
bank.

Opportunities occur in the external environment of a business. This includes 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 customers. Threats come from outside
of a business. It includes 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.

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.

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. 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.

Questions
1. What are the strength of ACI that used to turn its brand weakness into an opportunity?
2. How has ACI strategically addressed external threats?
3. Analyze how ACI’s values influence its business activities?
4. Can you identify any links between some of factors, for example between political, economic and legal
factors affecting a business?

Md.Mobarak Karim
M.Phil. Program
Department of Management Studies, University of Dhaka.