32

American International
University-Bangladesh(AIUB)

Prepared For:

Munsura Rahmatullah
Faculty of International Business

Subject: Global Business Strategy

Report topic: Concord Real Estate.

Prepared By:

Name Id Signature

Imtiaz Tanvir Ahmed 08-10255~1

Md. Abdur Rahim 08-11410-2

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Executive Summary

A special debt of gratitude is due to our respected faculty Munsura Rahmatullah of

American International University-Bangladesh (AIUB) for the valuable guidance in the
preparation of this report. Her vigorous co-operation with the excellence of her
knowledge not only enlightens us but also inspired us to motivate ourselves in bigger
tasks. Then our appreciation goes to Mr. Muhibul Hasan, HR executive of Concord
group, for giving us different information relevant to our project.

We would like to thank Mr. Saiful Islam, senior executives, real estate division of
Concord group for his constant guidance and enthusiastic support to make this report.

Finally we wish to express our gratitude to employees of Concord Real State to provide
us their insightful thoughts and knowledge related to real estate business.

Without all above their effort and co-operations it would have been impossible for us to
complete the project successfully.
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Letter of Transmittal

Munsura Rahmatullah
Faculty and Course Coordinator
Global Business Strategy
School of Business
American International University-Bangladesh
Dhaka, Bangladesh-1212

Subject: Submission of Project on Concord Real State- Bangladesh.

Dear Madam,
We would like to submit our above-mentioned project for your kind perusal.
The project work has helped us to learn about the real life business scenario on various
parts of business strategy such as Concord Real Estate management strategy in terms of
planning span of control, delegation of authority, SWOT analysis of the company,
customer relation management, and their social and ethical responsibilities.
But due to the company’s reluctance to disclose some of their strategy to outsiders, we
had to apply our knowledge of basic strategic concepts. We humbly apologize for any
limitations in our project.
We have tried our best to make the report as practical, accurate and relevant as possible
in the light of the data available to us and offered extensive suggestions, as required per
project to make the report more logical.
Yours sincerely,

Enayet Ullah
Md. Abdur Rahim
Imtiaz Tanvir Ahmed
Rahman Emtazur
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Table of Contents

Pag
e

I) Executive summary…………………………………………………………. 1

II) Letter of Transmittal……………………………………………………….. 2

III) Main Report

Abstract …………………………………………………………………. 5

Introduction……………………………………………………………....4

a. Company at a glance…………………………………………………..7

b. Mission………………………………………………………………..8

c. Ash ridge mission model……………………………………………...9

d. SWOT analysis (internal & external)…………………………………10

e. PESTLE analysis……………………………………………………...12

f. Strategic options………………………………………………………15

g. Human Resource Management……………………………………….16

h. Compete in foreign market to new access…………………………….17

i. Decision making approach……………………………………………18

j. Business ethics………………………………………………………..19

k. Building block of competitive advantage…………………………….20

l. Choice of foreign entry……………………………………………….22

m. Benchmarks…………………………………………………………...23
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n. Marketing plan………………………………………………………..24

o. Conclusion……………………………………………………………26

IV) Bibliography…………………………………………………………………….27

V) Appendices……………………………………………………………………...28

Executive
Introduction Summary

The report discusses the strategic function of Concord real state Limited, the real state
business environment, and the sample allocation project assigned to this researcher. The
main focus of the report is on the ashridge mission model, dynamic strategy, different
analysis and ethical issue and so on.

Concord is one of the oldest business houses in Bangladesh (founded in 1972) and one of
the biggest players in the construction and real estate industry. They have successfully
handed over more projects to satisfied clients than any other company, over 600 in
number and ranging widely in size and cost. They are the market leader in luxury
apartments and the first to produce and use environmentally safe and earthquake proof
building materials in Bangladesh, materials previously only seen in “wealthy nations.”
Many make claims to having the best safety and structural integrity; concord is proven by
independent tests carried out by local as well as foreign experts. From their vast
experience in construction - building bridges, theme parks etc. They employ the best
engineers and most up-to-date construction techniques in Bangladesh today. They have a
unique insight into structural engineering and can handle any project of any size or
difficulty. Apart from our real estate ventures, they have been entrusted to build many
landmark projects in the country, which has been provided in the report.
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The real state business environment in which Concord real state operates is a very
competitive one. However the competition is mainly concentrated among top ten real
state companies. In the report, the nature of the real state industry forces was discussed
by the help of Porter’s Five Forces model. It was shown that although there are several
entry barriers to the industry, intensity of rivalry and bargaining power of suppliers and
consumers poses a threat to Concord real state.

• The National Monument at Savar

• The Prime Minister's Secretariat
• Hazrat Shahjalal International Airport
• The low-rise block of the Sonargaon Pan Pacific Hotel
• CIBA -GEIGY Pharmaceutical Plant at Tongi
• rdsThe 200 bed hospital in Narayanganj
• The VVIP Residence at Hare Road
• The VVIP Rest House at Testa Barrage Complex
• The 24 storey Janata Bank Head Office Building
• The administrative building of Bangladesh T&T Board
• The head offices of Titas Gas Transmission & Distribution Co. Ltd

At the end of the report some recommendations have been put forward for further
development.
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Abstruct

This report gives an overview on the background of the mission, vision, ash ridge mission
model, dynamic strategy and different analysis of Concord real state company.

Origin of the Report

Munsura Rahmatullah faculty American International University-Bangladesh orally

assigned the students to prepare a formal business report on global business strategy. The
students had to prepare the report according the knowledge they earned through the
Global Business Strategy course. This report is prepared to comply with that instruction.

Purpose

The reports primary purpose is to comply with the partial requirement of global business
strategy. The secondary purpose is to provide information about Concord real state,
which is a pioneer real state company operating in Bangladesh.

Scope
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The report is analytically in nature. The study covers the mission, vision, ashridge
mission model, dynamic strategy and different analysis of Concord real state Company .
The findings are strictly based on the information provided by the respective personnel
and website of Concord Real State Ltd.

Limitations

The authority of the Concord real state company thinks some of the information as
sensitive. They provided only a little information regarding the strategy. As maximum
information was collected through web site so that it was not possible to make research a
bit more.

Sources and Methodology

To collect the information secondary sources were mostly used.

Sources

This report is mainly based upon secondary sources. Since secondary sources were
consulted for an understanding of the real estate business and Concord Real Estate
company globally, such as publications and web pages.

Interpretation of Data and Presentation of Facts

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The information, collected from the relevant personnel and on web site studies were first
recorded and then interpretation of the information was made. The significant findings
are presented systematically throughout the report.

Report Preview

The report is arranged logically to analyze the strategy of Concord Real Estate company.
The report tends to analyze the mission, vision, ash ridge model, dynamic strategy. The
report will give a precise idea about the strategy in the organization. A little analysis was
made at the end of the report.

MAIN REPORT

Company at a Glance

Name: Concord real state company, Bangladesh

Location: HEADOFFICE: concord center 43, north commercial area Dhaka-1212,

Bangladesh.. Phone: 8814028, 8829871. Fax: 9887037,

Email: concord@concordgroup.net Website: www.concordgroup.net

Parent Company: Concord is one of the oldest business houses in Bangladesh (founded
in 1972) and one of the biggest players in the construction and real estate industry. They
have successfully handed over more projects to satisfied clients than any other company,
over 600 in number and ranging widely in size and cost. They are the market leader in
luxury apartments and the first to produce and use environmentally safe and earthquake
proof building materials in Bangladesh, materials previously only seen in “wealthy
 32

nations.” Many make claims to having the best safety and structural integrity; concord is
proven by independent tests carried out by local as well as foreign experts. From their
vast experience in construction - building bridges, airports, theme parks etc. They employ
the best engineers and most up-to-date construction techniques in Bangladesh today.
They have a unique insight into structural engineering and can handle any project of any
size or difficulty. Apart from our real estate ventures, they have been entrusted to build
many landmark projects in the country.

Mission

Concord, one of the remarkable real estate companies, believe that everyone has the right
to high quality, affordable and safe housing, whatever their economic status. Concord
caters for all budgets and incomes. They specialize in luxury apartments and offices and
yet they have also designed and sold thousands of homes and office spaces to the mid-
market and lower income households. For Concord, customer satisfaction is of utmost
importance. According to Concord, We can cater to your every whim, we can custom
design interiors and encourage a great deal of customer participation whether we are
developing your land or selling you an apartment or some office space. We can design
our apartments and buildings to suit your every need and desire. Our dedicated and
professional real estate team is always happy to help. Our projects are built to last,
through providing high quality living and working structures we aim to improve the
quality of life for the people of Bangladesh.
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Ashridge Mission Model

Purpose
“Establishment of the relentless pursuit of quality”

Strategy

.Commitment to quality Value

.Very experienced .Safety and comfort of the

consumer
.Latest and innovative Behavior Standards
design
.Testing laboratory for
.Strictly follows code of ethics formula testing materials.
.Using most effective
technology .Transportation facility for the employees .Concerned about the taste
and opinion of consumer
.Importing materials from .Incentives and bonus
abroad
.Social responsibility by
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SWOT analysis

Internal & External analysis

Internal & external analysis basically are the SWOT analysis of the company. SWOT
stands for Strengths, Weakness, Opportunities & Threats. Internal analysis is the
strengths & weakness. External analysis is the opportunity & threats.

SWOT analysis

Strength

 the finest structural engineering and architecture combined with striking

aesthetics to create a living space
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 the market leader in luxury apartments in Bangladesh

 Highest quality home that can pass down for generations to come.

 Highest safety standards going above and beyond existing building codes.

 earthquake proof and environment friendly building materials

 Electrical safety measures

 Backup generators in every building

 Foreign fixtures and fittings for luxury buildings

 Optimal design adhering to all building codes and regulations

Weakness

 Most of the apartments costly that only for upper class people

 Most of the projects are in centre of city & town area, as a result other low area
don’t covered.

 Measuring the projects of Concord it is identify with localization strategy that

don’t match with maximum other real estate business that occur problem of
strategic alliance.

 As Concord is a big international company, so their decision making process is

decentralized which can affect the business in host country.
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Opportunities

 Can find the options of other competitors

 Purchasing more land for projects as land price is increasing

 Changing strategy which can make best use of strength

 Can pursue cost leadership strategy for catching market of developing country

 Should increase more market for spreading risk & access to customer & natural
resource.

Threats

 Lot of strong competitor in the market

 Land price is increasing that can hampering the projects

 Governments strict rules on real estate company

 Object may not be successful because of market selection in developing country

 Availability of high quality raw materials can be issue as Concord’s maximum

projects are in developing country like Bangladesh.

PESTLE analysis
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Political factors

 Lack of political will/commitment to pursue

 High rate of tax
 Biasness of political parties
 Corruption
 Strike, Hartal etc.
 Barriers in working independently
 Doing business by following social responsibility
 Lack of protection etc.

Economic factors

 Bangladesh has increased gross domestic product to US$224.889 billion

 The economy has grown at the rate of 6-7% p.a. over the past few years
 Limitation on foreign direct investment
 The value of the rate of currency is decreasing day by day
 sound financial control and regulations
 Huge unemployment rate
 Corruption
 Biasness in making budget etc.

Socio-cultural factors

 Demographics: completed more than 600 projects in Dhaka & outside of capital
& in abroad.
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 Lifestyle preferences: maximum luxurious for elite class

 New consumerism: expand market for middle class in Bangladesh

 Women in the workforce: Concord is equally employer, but in terms of real estate
sector it is men dominated.

 Attitude about the QWL: Always try to extract optimum output from skilled
workforce.

Technological factors

 Speed of technology transfer: The whole process in office & site computably
mechanized. Engineering, design and construction teams are using high-tech.

 New discoveries & innovation: Always research for ascertain new projects

 Effects of new technology in business: Gain access to core competency &

increase competitive advantage.

 IT: Own web site & updated by different new projects in different new location.

 PLC: As it is real estate sector, so investing for long term projects.

Legal factors:

 Concord follows strict laws for establishing buildings.

 Establishments are approved by standard Building codes of Bangladesh.

 Provide proper salaries and facilities to its employees.

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 Properties meet the safety standards beyond the building laws of Bangladesh.

 Properties are certified by ISO 900 & UKAS.

Environmental factors

 Climate issues: Concord real estate properties are suitable for all kind of climate
situations possible in a country.

 Environmental issues: They use environmentally safe and earthquake proof

building materials in Bangladesh. The materials are of best quality and harm free.

 Human rights issues: Concord real estate gives emphasis on Human rights issues
by using safe workplace for employees and access to all needs. They also provide
flexible work hours and safety gears to all its workers.

 Pollution: Concord projects are pollution free. This means they use the best
quality raw materials from abroad which are eco friendly.

 Recycling issue: Concord real estate follow the 3 r’s method which are reduce,
reuse & recycle. The waste materials that are left after manufacturing is
sometimes reused and remaining are recycled by the industry itself in a proper
manner.

 Hazard prevention: Concord follows proper method in construction avoiding

hazardous situations. They follow industry standards in applying strategies for
real estate.
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Strategic Options

According to our study & analysis on Concord group, we decided to place it under the
Think global Act local strategy. This means they employ a combination of global-
local strategy. As they have less foreign market but mainly the local real estate market,
they follow this strategy.

The reasons for this choice are:

 Concord real estate applies the same basic competitive strategy theme in all its
foreign markets. They mainly follow the low cost and differentiation strategy.

 According to customer tastes and preferences, Concord can sell suitable real
estate projects in foreign countries. They have the capability to customize their
offerings according to customer’s choice. By this they can offer various products
to customers.

 They facilitate the local managers to adapt the global approach as they emphasis
on local preferences and competitive conditions by modernizing their products in
order to cope up with market situations.
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Human Resource Management

Compete in foreign market to new

Division of task Function access

Recruiting sources • local

• employee references
• out sourcing

Staffing approach • Polecentric approach

Training and development • Provide maximum experience

management
• Provide variety of example
• Label or identify important task features
• Make sure general principle are understood
• Reward trained behavior and ideas

Performance appraisal
• Use analysis to develop the appraisal system
• Check that the appraisal system is behavior
oriented, not trait oriented
• Evaluator follow some specific written rules written
by Concord management

Compensation policy • Compensation and benefits are depend on

• knowledge of working
• taxation laws
• cost of living standard
• employee experience

Expatriate
• Concord hire some expatriate for top level work
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From our analyzing we put Concord real estate under international competition. It
operates in only three foreign countries Singapore, USA & Australia. So, concord does
not emphasis on competition in foreign market, it only emphasis is on establishing strong
position in the local real estate market. In the same time it has a modest ambition to
expand further into international markets.

Following are some of the strategies they follow while entering into international
markets:

• Gain access to new customers:

As we know Concord has a good customer base in international markets they strive to be
the very best, using the best quality construction materials, the latest and most innovative
designs and hand picking the supplies and materials from abroad, paying attention to
every detail. By this they can gain access to new customers.

• Obtain access to valuable natural resources:

Natural resources are essential materials for establishing a company. Concord as a real
estate company obtains access to natural resources like land, climate& proper site
through applying location economies.

• Achieve lower cost and enhance competitiveness:

They achieve lower cost by achieving lower cost agents & by doing insurance in lower
interest. International market is all about competition. So Concord enhances its
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competitiveness through employing the best engineers and most up-to-date construction
techniques available today in real estate industry.

• Capitalize on core competencies:

Core competencies are a firm’s main driving force. Core competencies enable an
organization to excel at the various activities it does to provide value. Concord has
capitalized on core competencies by capturing customer satisfaction from its
establishment. Service, customers, location are its basic core competencies.

• Spread business risk across wider market base:

Concord has a wider market base in home country as well as foreign country. So they
have the option to spread and share their business risk across new markets through
expansion.

Decision making approach

The real estate of Concord group is a bulky company. They run lot of operations in local
market & also in foreign market. So the key issue like decision making for every single
small operation is not easy matter for the company. Their most of the decision is
centralized in local project in Bangladesh. But for their foreign projects they follow
decentralized decision approach.
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Business Ethics

Concord Real State Ltd. follows a business ethics, which consists of acceptable & world-
class business conduct. Concord Real State Ltd. also believes that its goal is not only to
earn profit but also considering the social implication of their activities. To contribute
something good to the society & to do something good for the country is the main
objective of this company. The main ethics that Concord Real State Ltd. follows are
mentioned below-

 Not to violate any human rights as well as to support & promote the protection of
human rights.

 Ensuring community benefits and equality of opportunities

 Ensuring the health & safety measures taken for the employee of the company.

 Maintaining the consistency with universally accepted labor standards including

those related to exploitation of child labor.

 To make sure that it's activities are consistent with sound environmental
management & conservation practices.

 Not to make or get involved in any sort of illegal & improper payments, deals or
bribes & refrain from participating in any corrupt business practices.

 Comply with all application laws & conduct business in such a manner where
there transparency.
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Building block of competitive

advantage

 Efficiency:-

The ratio of output and input.

We know, Efficiency = Output / inputHere, Efficiency of concord = Quality, Customer

responsiveness etc. / Technology, Effort etc. We also know that, productivity leads
togreater efficiency and lower costs.
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Capital productivity:

Concord is one of the famous and ancient real estate conglomerates in

Bangladesh. Concord is growing faster day by day.And the popularity is incresing
rapidly. So the capital is also increasing.The capital of Concord is increasing by USD
28000 per year.

Employee productivity:

With the growth of capital, the employee rate of Concord has also
increased. Concord recruits skilled,merit employee for their company. Which has reduced
unemployeement rate of the country.

 Quality:-
Concord maintains quality of their product very strictly. They have their
own testing center to examine the condition of raw materials. At the same time they do
not use any polluted or recycled bricks or concrete. Concord has latest technology, skilled
labor, and experienced architect.

 Innovation:-
Product innovation:

Concord allows their consumers to choose and select the interior

according to their likeness. And they also give discount to their consumers which create
value for their customer.
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Process innovation:

Concord uses latest technology and prohibits using resources from

outside. Concord uses resources which is available internally. This strategy helped them a
lot to reduce cost and make more profit.

 Responsiveness to customers:-
Concord is highly concerned about the quality and customers choice.
They give their customers full independence to choose interior of the flat. By which they
create value to customers. Concord has become one of the most popular real estate
conglomerates in Bangladesh because of their quality and performance. So
responsiveness to customer is pretty high.

Choice of foreign entry

For entering into a foreign market it is very essential for every company to determine the
best mode or vehicle. The optimum option depends on the company’s strategy. Though
the Concord real estate ltd enter into the foreign market but their market size is very
limited. For entering into foreign market Concord real estate have to analyze some
common factors. These are-

 Decisions

1. Barriers to enter : Imbalance of benefits, costs, risks etc

2. Timing of entry : If Concord take first move, they can preempt & build
share. In contrast they also have to bear pioneering cost.

3. Scale of entry : As Concord is a company of third world country like

Bangladesh, their strategic commitment can be high if they enter vigorously
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into foreign market. In contrast they will be small benefited if they capture
smaller portion of the market.

 Mode

They can enter in to market by both licensed & wholly owned proprietorship. In
foreign markets their competitions products are more qualified than them. So they
have to differentiate their products to earn greater returns where competitors lack
comparable products. For that they have to have two distinctive competencies. These
are-

1. Technological know- how

2. Management know- how

Benchmarks

Organizational cost & performance measure:

Most of the buildings & its interior decoration of Concord real estate make for elite
class or upper class people of the country & it’s very pricey. As most of the local
people are middle class so they lose the larger share of the market.

Competitor’s cost & performance measure:

Some of other competitor performing well in the market than Concord real estate.
Because they market their products at cheap price than Concord & easily enter into
the customers. Though they choose low cost or low provide location but they are able
to capture larger share of the market. For illustration, Asian city, Rupayan,
Modhumati model town etc.

Marketing plan
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Levels of Marketing Plan (Concord Real Estate):

Concord being a market leader in real estate of our country follows a Tactical marketing
Plan. This means they prefer competitive marketing through the following plans:

• Product features:

Its products contain the features of the best quality in its class. The real estate
projects are much customized according to modern standards. So they can use
product specification as their marketing tool.

• Promotion:

Concord uses sales promotion during various real estate fairs in the country in
order to increase its marketing success. They also give offers with their projects as
part of promotion.

• Merchandising:

Merchandising is a very popular marketing procedure. Concord is also not

unfamiliar with merchandising. They buy, develop and sell properties to their
customers or clients all over the country.

• Pricing:
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They price their products according to quality and preferences of their customers.
So, pricing is an important part of their marketing plan. Pricing also helps in
categorizing their products.

• Sales channels:

Concord real estate has a wide range of sales channels. Their sales channels are
the real estate offices around the city. They sell via intermediaries to their
customers by various channels like real estate agents of their own.

• Service:

Versatility is an important element in any company's growth. Within the Concord

Group this is visible in their numerous subsidiary companies that provide a wide
variety of products and services that complement core business. For the last 35
years they have undertaken some of the most prestigious and technically
challenging projects and helped shape the Dhaka skyline. Many of these projects
were commissioned by the government and others by large corporations.
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Conclusion: Concord real state, an Excellent

Organization

According to the strategic thinking views points an excellent organization has the
following characteristics:

 Is oriented toward action

 Learned about the needs of their customers.

 Sustaining the competitive interaction

 Working considering cost as well as value

 Driven by a company philosophy often based on the values of their leaders

 Focused on competitors strength and weakness

 Has a simple organization structure with innovation

 Is must be imaginative, practical and relevant.

According to all these criteria concord real state is an excellent organization in our point
of view. By analyzing the information of this report we can see that it has competitive
business strategy which helps the organization working internationally. Concord real
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state is knows about the need of its customers and its employees as well. So they can
retain both their customers and employees. Company policy, values and strategy are
unique in nature. Concord real state has low work force in comparison of other
companies of their size. All the criteria made concord real state an excellent organization.

Bibliography

1. Mr. Muhibul Hasan,(Human Resource Executive, Concord Group Ltd) Gulshan

(head office), Dhaka, (Personnel and Admin. Interview. 2007)

2. www.concordgroup.net

3.www. .concord group - wikipedia, the free encyclopedia.htm.com

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Appendices
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