Chapter One

1.1. INTRODUCTION

US-Bangla Airlines is the largest nationally scheduled airline in

Bangladesh. Apart from scheduled services, the US-Bangla Airlines is

engaged in the operation of national and domestic services and also

international.US-Bangla Airlines has flights to more than 8 destinations

along. Nowadays, the US-Bangla Airlines has successfully been labeled

as one of the pioneering airlines in green technology adaptation and

environmental friendly strategic decisions. The US-Bangla Airlines is

trying already the first airline to be a part of the scheme of Bangladesh

reducing greenhouse gas emissions. Apart from the novelty

improvements towards the ways in which passengers actually fly have

also undergone huge revolutions thanks to the US-Bangla Airlines.

1.2 Origin of the Report:

As a mandatory part the BBA Program, all the students of the faculty of

Business Studies, Green University of Bangladesh have to undergo

three months long internship program with an objective of gaining

practical knowledge about current business world. After this internship

program each and every students have to submit an internship report

mentioning their activities during the internship program.

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I’ve started my internship at the US-Bangla Airlines Limited, Head

Office, Dhaka, o8 November 2015 and I am still continuing my

internship on there. I am submitting my internship report focusing on

the overall performance of Airlines services.

1.3 Objective:

Broad Objective

The main objective of this report is to know about the airlines business

of Bangladesh especially that of US-Bangla Airlines.

Specific Objective:

The specific objectives of the study are to-

Present a profile of US-Bangla airlines

Examine the activities of the company

Asses the financial position of the company

Identify the US-Bangla Airlines strengths and weaknesses

To know present Strategic Management of US-Bangla Airlines.

Suggest some measures for improving the performance of the

company.

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1.4 Scope of the report:

US- Bangla Airlines Limited is one of the renowned airlines in

Bangladesh. The scope of the study is to evaluate the Management Art

of US Bangla Airlines. The report covers the organizational structure,

background, functions and the mangement performance of the

company.

1.5 Methodology:

In order to conduct this internship report both primary & secondary

data have been utilized. The sources of data are-

Primary source of data

Face-to-face conversation with the respective officers and stuffs

of the head office.

Secondary source of data

Website of the US-Bangla Airlines Ltd

Various articles relating general airlines functions and

management.

Relevant information published in various newspapers

Airline’s employees service manual.

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1.6 Constraints:

The constraints of the report and the study are follows:

The report has been conducted within a short time frame.

The study was limited within the head office.

The vital limiting factor is lack of experience and sound

knowledge for such research works.

Necessary data and information are neither adequate nor well

furnished.

The study was conducted by one person there is chance of having

error in any stage of data collection, data entry, data organizing,

data presentation, interpretation of result, etc.

Chapter Two

Organizational Profile

2.1 Corporate Profile

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US-Bangla is one of the leading groups in Bangladesh. It is working

with a broader mission & vision. US-Bangla Airlines is one of the

major business areas of US-Bangla Group.

Other business sectors are

Leather,

Green University

US- Bangla Medical College

Agro

Media

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US- Bangla Resorts and Tourism

US-Bangla Asset

US-Bangla Fashion House

’s etc. Serving with integrity, conducting us and our business in a

honest ethical and trustworthy manner, treating everyone with care,

fairness and respect, providing financial stewardship, growing through

innovation and creativity is the basic core values for our group. For

becoming a profitable organization, develop a solid corporate identity

in our specified targeted market area, to establish good working

relationships and begin working as a team, our primary objective is to

maintain the highest level of customer satisfaction and augment social

benefits.

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US-Bangla Airlines is the first and only ISO certified airlines in

Bangladesh, started its operation in July 17, 2014.The motive of this

company is to provide excellent service through honesty, quality,

integrity, sincerity, joy and professionalism to all our customers.

US-Bangla Airlines was established in 2010 and incorporated both in

Bangladesh and America, US-Bangla Airlines is the updated passenger

scheduled airlines in Bangladesh, initially operating in domestic routes

to and from Dhaka, Chittagong, Cox's Bazaar, Jessore, Sylhet, Saidpur,

Rajshahi and Barisal. The airlines had a plan to go for regional and

important international destinations & now it is flying abroad.

2.2 Services values:

Trusted: It starts with a commitment to personal and corporate

integrity.

Attributes are honest, fair, dependable, responsive and consistent.

Collaborative: Teaming with co-workers and its customers to provide

services that are better than what can do individually.

Attributes are respect, listening, learning, contributing, customized,

and scalable, robust.

Innovative: Applying technologies, processes, and methods in new

ways to provide quality services.

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Attributes are creative, unique, relevant, practical, proven and

valuable.

Efficient: A focus on improving its own efficiency without decreasing

the strength of its relationship and commitment to our customer.

Attributes are streamlined, economical and friendly.

Global \ Local: The people and facilities that support the customers’

worldwide operations global, regional and local.

Attributes are networked, coordinated, responsive and familiar.

2.3 Service offering

An airline company mainly sells service. It carries passenger or cargo

or both from one point to another point. US-Bangla Airlines offers 8

Domestic routes. From the last 2 year US-Bangla Airlines carried its

passengers by using the following four types of aircrafts:

Bombardier manufactured Three Dash 8 Q400 aircraft. It's a next

generation turbo prop aircraft with jet speed fitted with advanced

avionics. Seat configuration is 76.

Domestic Flights are:

US-Bangla Destination

Dhaka

Chittagong

Cox's Bazar

8

Jessore

Sylhet

Saidpur

Rajshahi

Barisal

2.4 Market Liberalization \ competition:

The CAAB (civil Aviation Authority of Bangladesh) has begin to

liberalize the aviation market in Bangladesh and to provide authority

for new airlines to operate both domestically and internationally

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According to government policy some domestic carriers are also

spreading their wings internationally. As a result the local market is

rolling in triangle motion. The promising private local carriers’ are-

GMG Airlines:

GMG Airlines is a fully owned subsidiary of the GMG Group of

companies and commenced schedule service in April 1998. Now it

operates a fleet of 3 MD-82, 2Bombardier DASH8 Q100 and 2

Bombardier DASH 8 Q2OO aircraft.

It operates domestic services at Dhaka, Barisal, Chittagong, Cox’s

Bazar, Jessore and Sylhet.

It operates international services to Calcutta, New Delhi, Kathmandu,

Kuala Lumpur, and Bangkok. It has two B767-200ER and one B777-

300 on order and plans to introduce new international services to

Karachi, Singapore, Hongkong, Dubai, Abu Dhabi and Muscat during

late 2007 and 2008.

BEST Air:

Best Air is yet another start up airline and is planning to fly both

domestically and

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Internationally (including flights to Bangkok-

Suvarnabhumi ,Chittagon, Guanghou , Jaypur, Calcutta and

Kunming). Best Air has been operating cargo services for a number of

years.

UNITED Airways:

United Airways is a new start up airline that commenced service only in

July 2007. It operates through Bombardier DASH 8-100 service from

Dhaka to Sylhet and Chittagong and also started operation

internationally for Bangkok and Kuala Lumpur.

REGENT Airways:

Regent Airways is a new airline formed in Bangladesh in 2010 by H.G

Aviation Limited, a subsidiary of the habib Group. Regent Airways

operates 2×Dash 8-300 domestically within Bangladesh.

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ZOOM Airways:

Zoom Airways is a cargo airline based in Dhaka, Bangladesh. Formed

in 2002 as Z-Airways and Services, the airline operates cargo charter

flights in Bangladesh and in the South Asia region in 2005, the airline

was renamed to zoom Airways

Novo Air:

NOVOAIR is a limited liability company registered and incorporated in

Bangladesh. It is the premium Scheduled Passenger Airline spreading

wings in the emerging aviation market in Bangladesh and beyond. With

a fleet of EMB-145 Jet and ATR-72 aircrafts, activities are diversified

in passenger, air cargo transportation, travel and holiday services and

high end aviation technology solution.

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Chapter Three

Literature Review

3.1 Overview of Management:

Management in businesses and organizations is the function that

coordinates the efforts of people to accomplish goals and objectives by

using available resources efficiently and effectively.

Management includes planning, organizing, staffing, leading or

directing, and controlling an organization to accomplish the goal or

target. Resourcing encompasses the deployment and manipulation of

human resources, financial resources, technological resources, and

natural resources. Management is also an academic discipline, a social

science whose objective is to study social organization.

Some see management (by definition) as late-modern (in the sense of

late modernity) conceptualization. On those terms it cannot have a pre-

modern history, only harbingers (such as stewards). Others, however,

detect management-like-thought back to Sumerian traders and to the

builders of the pyramids of ancient Egypt. Slave-owners through the

centuries faced the problems of exploiting/motivating a dependent but

sometimes unenthusiastic or recalcitrant workforce, but many pre-

industrial enterprises, given their small scale, did not feel compelled to

face the issues of management systematically. However, innovations

such as the spread of Hindu numerals (5th to 15th centuries) and the

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codification of double-entry book-keeping (1494) provided tools for

management assessment, planning and control.

With the changing workplaces of industrial revolutions in the 18th and

19th centuries, military theory and practice contributed approaches to

managing the newly-popular factories.

Given the scale of most commercial operations and the lack of

mechanized record-keeping and recording before the industrial

revolution, it made sense for most owners of enterprises in those times

to carry out management functions by and for themselves. But with

growing size and complexity of organizations, the split between owners

(individuals, industrial dynasties or groups of shareholders) and day-to-

day managers (independent specialists in planning and control)

gradually became more common.

While management trends can change rapidly, the long term trend in

management has been defined by a market embracing diversity and a

rising service industry. Managers are currently being trained to

encourage greater equality for minorities and women in the workplace,

by offering increased flexibility in working hours, better retraining, and

innovative (and usually industry-specific) performance markers.

Managers destined for the service sector are being trained to use unique

measurement techniques, better worker support and more charismatic

leadership styles. Human resources find itself increasingly working with

management in a training capacity to help collect management data on

the success of management actions with employees

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3.2 Stages of Strategic Management:

The strategic-management process consists of three stages: strategy

formulation, strategy implementation, and strategy evaluation. Strategy

formulation includes developing a vision and mission, identifying an

organization’s external opportunities and threats, determining internal

strengths and weaknesses, establishing long-term objectives, generating

alternative strategies, and choosing particular strategies to pursue.

Strategy-formulation issues include deciding what new businesses to

enter, what businesses to abandon, how to allocate resources, whether

to expand operations or diversify, whether to enter international

markets, whether to merge or form a joint venture, and how to avoid a

hostile takeover. Because no organization has unlimited resources,

strategists must decide which alternative strategies will benefit the firm

most.

Strategy-formulation decisions commit an organization to specific

products, markets, resources, and technologies over an extended period

of time. Strategies determine long-term competitive advantages. For

better or worse, strategic decisions have major multifunctional

consequences and enduring effects on an organization. Top managers

have the best perspective to understand fully the ramifications of

strategy-formulation decisions; they have the authority to commit the

resources necessary for implementation. Strategy implementation

requires a firm to establish annual objectives, devise policies, motivate

employees, and allocate resources so that formulated strategies can be

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executed. Strategy implementation includes developing a strategy-

supportive culture, creating an effective organizational structure,

redirecting marketing efforts, preparing budgets, developing and

utilizing information systems, and linking employee compensation to

organizational performance. Strategy implementation often is called

the “action stage” of strategic management. Implementing strategy

means mobilizing employees and managers to put formulated strategies

into action. Often considered to be the most difficult stage in strategic

management, strategy implementation requires personal discipline,

commitment, and sacrifice.

Successful strategy implementation hinges upon managers’ ability to

motivate employees, which is more an art than a science. Strategies

formulated but not implemented serve no useful purpose. Interpersonal

skills are especially critical for successful strategy implementation.

Strategy-implementation activities affect all employees and managers

in an organization. Every division and department must decide on

answers to questions, such as “What must we do to implement our part

of the organization’s strategy?” and “How best can we get the job

done?” The challenge of implementation is to stimulate managers and

employees throughout an organization to work with pride and

enthusiasm toward achieving stated objectives. Strategy evaluation is

the final stage in strategic management. Managers desperately need to

know when particular strategies are not working well; strategy

evaluation is the primary means for obtaining this information. All

strategies are subject to future modification because external and

internal factors are constantly changing.

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Three fundamental strategy-evaluation activities are (1) reviewing

external and internal factors that are the bases for current strategies, (2)

measuring performance, and (3) taking corrective actions. Strategy

evaluation is needed because success today is no guarantee of success

tomorrow! Success always creates new and different problems;

complacent organizations experience demise. Strategy formulation,

implementation, and evaluation activities occur at three hierarchical

levels in a large organization: corporate, divisional or strategic business

unit, and functional. By fostering communication and interaction

among managers and employees across hierarchical levels, strategic

management helps a firm function as a competitive team. Most small

businesses and some large businesses do not have divisions or strategic

business units; they have only the corporate and functional levels.

Nevertheless, managers and employees at these two levels should be

actively involved in strategic-management activities. Peter Drucker

says the prime task of strategic management is thinking through the

overall mission of a business: . . . that is, of asking the question, “What

is our business?” This leads to the setting of objectives, the

development of strategies, and the making of today’s decisions for

tomorrow’s results.

This clearly must be done by a part of the organization that can see the

entire business; that can balance objectives and the needs of today

against the needs of tomorrow; and that can allocate resources of men

and money to key results.

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3.3 Key Terms in Strategic Management

Before we further discuss strategic management, we should define nine

key terms: competitive advantage, strategists, vision and mission

statements, external opportunities and threats, internal strengths and

weaknesses, long-term objectives, strategies, annual objectives, and

policies. Competitive Advantage Strategic management is all about

gaining and maintaining competitive advantage. This term can be

defined as “anything that a firm does especially well compare to rival

firms.” When a firm can do something that rival firms cannot do, or

owns something that rival firm’s desire, that can represent a

competitive advantage.

For example, in a global economic recession, simply having ample cash

on the firm’s balance sheet can provide a major competitive advantage.

Some cash-rich firms are buying distressed rivals. For example, BHP

Billiton, the world’s largest miner, is seeking to buy rival firms in

Australia and South America. Freeport-McMoRan Copper & Gold Inc.

also desires to expand its portfolio by acquiring distressed rival

companies. French drug company Sanofi Aventis SA also is acquiring

distressed rival firms to boost its drug development and diversification.

Cash-rich Johnson & Johnson in the United States also is acquiring

distressed rival firms. This can be an excellent strategy in a global

economic recession. Having less fixed assets than rival firms also can

provide major competitive advantages in a global recession. For

example, Apple has no manufacturing facilities of its own, and rival

Sony has 57 electronics factories.

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Apple relies exclusively on contract manufacturers for production of all

of its products, whereas Sony owns its own plants. Less fixed assets has

enabled Apple to remain financially lean with virtually no long-term

debt. Sony, in contrast, has built up massive debt on its balance sheet.

CEO Paco Underhill of Envirosell says, “Where it used to be a polite

war, it’s now a 21st-century bar fight, where everybody is competing

with everyone else for the customers’ money.”

Shoppers are “trading down,” so Nordstrom is taking customers from

Neiman Marcus and Saks Fifth Avenue, T.J. Maxx and Marshalls are

taking customers from most other stores in the mall, and even Family

Dollar is taking revenues from Wal-Mart.9 Getting and keeping

competitive advantage is essential for long-term success in an

organization.

The Industrial/Organizational (I/O) and the Resource-Based View

(RBV) theories of organization (as discussed in Chapters 3 and 4,

respectively) present different perspectives on how best to capture and

keep competitive advantage—that is, how best to manage strategically.

Pursuit of competitive advantage leads to organizational success or

failure. Strategic management researchers and practitioners alike desire

to better understand the nature and role of competitive advantage in

various industries. Normally, a firm can sustain a competitive

advantage for only a certain period due to rival firms imitating and

undermining that advantage. Thus it is not adequate to simply obtain

competitive advantage.

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A firm must strive to achieve sustained competitive advantage by

continually adapting to changes in external trends and events and

internal capabilities, competencies, and resources; and by effectively

formulating, implementing, and evaluating strategies that capitalize

upon those factors. For example, newspaper circulation in the United

States is steadily declining. Most national newspapers are rapidly losing

market share to the Internet, and other media that consumers use to stay

informed. Daily newspaper circulation in the United States totals about

55 million copies annually, which is about the same as it was in 1954.

Strategists ponder whether the newspaper circulation slide can be halted

in the digital age.

The six broadcast networks—ABC, CBS, Fox, NBC, UPN, and WB—

are being assaulted by cable channels, video games, broadband,

wireless technologies, satellite radio, high-definition TV, and digital

video recorders. The three original broadcast networks captured about

90 percent of the prime-time audience in 1978, but today their

combined market share is less than 50 percent.10 An increasing number

of companies are gaining a competitive advantage by using the Internet

for direct selling and for communication with suppliers, customers,

creditors, partners, shareholders, clients, and competitors who may be

dispersed globally. E-commerce allows firms to sell products, advertise,

purchase supplies, bypass intermediaries, track inventory, eliminate

paperwork, and share information. In total, e-commerce is minimizing

the expense and cumbersomeness of time, distance, and space in doing

business, thus yielding better customer service, greater efficiency,

improved products, and higher profitability. The Internet has changed

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the way we organize our lives; inhabit our homes; and relate to and

interact with family, friends, neighbors, and even ourselves. The

Internet promotes endless comparison shopping, which thus enables

consumers worldwide to band together to demand discounts.

The Internet has transferred power from businesses to individuals.

Buyers used to face big obstacles when attempting to get the best price

and service, such as limited time and data to compare, but now

consumers can quickly scan hundreds of vendor offerings. Both the

number of people shopping online and the average amount they spend

is increasing dramatically. Digital communication has become the name

of the game in marketing. Consumers today are flocking to blogs, short-

post forums such as Twitter, video sites such as YouTube, and social

networking sites such as Facebook, MySpace, and LinkedIn instead of

television, radio, newspapers, and magazines. Facebook and MySpace

recently unveiled features that further marry these social sites to the

wider Internet. Users on these social sites now can log on to many

business shopping sites with their IDs from their social site so their

friends can see what items they have purchased on various shopping

sites. Both of these social sites want their members to use their IDs to

manage all their online identities.

Most traditional retailers have learned that their online sales can boost

in-store sales as they utilize their Web sites to promote in-store

promotions. Strategists are the individuals who are most responsible for

the success or failure of an organization. Strategists have various job

titles, such as chief executive officer, president, and owner, chair of the

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board, executive director, chancellor, dean, or entrepreneur. Jay

Conger, professor of organizational behavior at the London Business

School and author of Building Leaders, says, “All strategists have to be

chief learning officers. We are in an extended period of change. If our

leaders aren’t highly adaptive and great models during this period, then

our companies won’t adapt either, because ultimately leadership is

about being a role model.” Strategists help an organization gather,

analyze, and organize information.

They track industry and competitive trends, develop forecasting models

and scenario analyses, evaluate corporate and divisional performance,

spot emerging market opportunities, identify business threats, and

develop creative action plans. Strategic planners usually serve in a

support or staff role. Usually found in higher levels of management,

they typically have considerable authority for decision making in the

firm. The CEO is the most visible and critical strategic manager. Any

manager who has responsibility for a unit or division, responsibility for

profit and loss outcomes, or direct authority over a major piece of the

business is a strategic manager (strategist). In the last five years, the

position of chief strategy officer (CSO) has emerged as a new addition

to the top management ranks of many organizations, including Sun

Microsystems, Network Associates, Clarus, Lante, Marimba, Sapient,

Commerce One, Cadbury Schweppes, General Motors, Ellie Mae,

Cendant, Charles Schwab, Tyco, Campbell Soup, Morgan Stanley, and

Reed-Elsevier.

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This new corporate officer title represents recognition of the growing

importance of strategic planning in the business world.11 Strategists

differ as much as organizations themselves, and these differences must

be considered in the formulation, implementation, and evaluation of

strategies. Some strategists will not consider some types of strategies

because of their personal philosophies. Strategists differ in their

attitudes, values, ethics, willingness to take risks, concern for social

responsibility, concern for profitability, concern for short-run versus

long-run aims, and management style. The founder of Hershey Foods,

Milton Hershey, built the company to manage an orphanage. From

corporate profits, Hershey Foods today cares for over a thousand boys

and girls in its School for Orphans. Vision and Mission Statements

Many organizations today develop a vision statement that answers the

question “What do we want to become?”

Developing a vision statement is often considered the first step in

strategic planning, preceding even development of a mission statement.

Many vision statements are a single sentence. For example, the vision

statement of Stokes Eye Clinic in Florence, South Carolina, is “Our

vision is to take care of your vision.” Mission statements are “enduring

statements of purpose that distinguish one business from other similar

firms. A mission statement identifies the scope of a firm’s operations in

product and market terms.”12 It addresses the basic question that faces

all strategists: “What is our business?” A clear mission statement

describes the values and priorities of an organization.

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Developing a mission statement compels strategists to think about the

nature and scope of present operations and to assess the potential

attractiveness of future markets and activities. A mission statement

broadly charts the future direction of an organization. A mission

statement is a constant reminder to its employees of why the

organization exists and what the founders envisioned when they put

their fame and fortune at risk to breathe life into their dreams. Here is

an example of a mission statement for Barnes & Noble: Our mission is

to operate the best specialty retail business in America, regardless of the

product we sell. Because the product we sell is books, our aspirations

must be consistent with the promise and the ideals of the volumes

which line our shelves. To say that our mission exists independent of

the product we sell is to demean the importance and the distinction of

being booksellers.

As booksellers we are determined to be the very best in our business,

regardless of the size, pedigree, or inclinations of our competitors. We

will continue to bring our industry nuances of style and approaches to

bookselling which are consistent with our evolving aspirations. Above

all, we expect to be a credit to the communities we serve, a valuable

resource to our customers, and a place where our dedicated booksellers

can grow and prosper. Toward this end we will not only listen to our

customers and booksellers but embrace the idea that the Company is at

their service.

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Chapter Four

Findings and Analysis

4.1Current Strategies

The current strategies of US-Bangla Airlines are in line with the

advancement that the mobile and computing technology is experiencing

at current time. At the same time, the company is also focused on

expanding its business operations to better serve increasing amounts of

passengers due to the slight recuperation of the global economic

conditions. Among the strategies that the airline currently undertake

include

 

Upgrading the customer experience through the introduction of

mobile application services for business class customers. Along

with that the company is also experimenting with enabling texting

and mobile services for business class customers during on-flight

hours.

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Modernizing the current aero planes while offering new services.

Managing a better cost base operation

Increasing corporate responsibility through environmental

performance and partnerships.

The opportunities that exist in today’s market for airlines in terms of

scheduled passengers is the most and US-Bangla Airlines will

definitely to focus strategic development that will take these markets

into account.

4.2 SWOT Analysis

Conducting a SWOT analysis into US-Bangla Airlines business

operations would be a good way to identify the company’s strengths

and weakness and ways for improvements. It is important that strategic

development is reflected upon US-Bangla Airlines strengths and

weaknesses with relation to competitive threats and opportunities that

exist in the organization’s external Environment.

Strength

US-Bangla Airlines of an established and a well-known brand name

that is reputed with carrying the symbol of Bangladesh Domestic air

travel.

Largest Bangladesh based national airline in terms of financial size

and stability

Weakness

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Poor employee relations histories that was evident in a number of

cabin crew and issues that have not been dealt with carefully.

Reliability and trust issue in terms of safety is not at an optimum

level due to increase in terrorist threat

Innovation and change is slightly slow in terms of US-Bangla

Airlines application.

Opportunities

US-Bangla Airlines rise in the Sky star quality system is an

important marketing area that the company can use to boast

national image

Most competitors have been forced to exit the market due

to the high cost of competing and the struggle of the global

economy.

Reliability in terms of service delivery is still an issue that

is faced by most of US-Bangla Airlines competitors.

Emergence and increasing prominence of new markets

such as budget travelling.

Threats

The Open skies agreement has provided a fair competition for

smaller airlines while also increasing the competitiveness through

removal of restrictions on international and national routes for all

airlines.

Environmental awareness that has constantly risen amongst most

consumers is increasing the pressure on US-Bangla Airlines to

reinvent energy policies and apply strict regulation on flight

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schedules during off-peak seasons to adopt environmental

regulations.

Reducing operational costs among competitions is making it hard

for US-Bangla Airlines to settle on previous strategies for profit

margin.

4.3 Porter’s Five Forces factor

Porter’s five forces is an important tool in analyzing the competitive

nature of the airline Industry in order to assess the position of US-

Bangla Airlines in the market. At the same time, the analysis will

enable US-Bangla Airlines to make strategic decisions in order to

increase profitability.

Strength Force/Threat

High Competitive   Rivalry

US-Bangla Airlines caters for short haul flights.

Within the short haul there exists little

differentiation between US-Bangla Airlines and

its competitors in terms of pricing and service

offering.

The short haul market is more fragmented with

many small players

Consolidation of competitors has also increased

competition

High Supplier   Power

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There exist two major aero plane manufacturers

with high amount of competitiveness. This

equals high bargaining power

Priority of landing slots is given to historic rights

of existing users

Medium Buyer   Power

Low concentration of buyers to supplier mean

the buyers have

little bargaining power

Increase internet usage has amplified awareness

and interaction of customers

Lowe cost carriers are seeing surge in buyers due

to economic conditions

Low Threat   of   New   Entrants  

Significant barriers towards new entry.

Environment is too competitive. There are also

high capital costs requirements.

Barriers to exit are in place which deters new

entrants.

4.4 ANS off Product Market Matrix

The Ansoff growth matrix is a strategic tool that helps companies to

evaluate products along with its market growth strategy. The product-

market growth matrix of Ansoff allows a business to grow by virtue of

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a new or existing product succeeding in a new or existing market. The

Ansoff matrix outputs a series of suggested growth strategies that

directs the business’ strategy through the following drivers:

 Figure above shows the ANS off growth matrix Market Penetration

Growth strategy that focuses on releasing existing products into

existing markets successfully through:

 

Drive out competitors in mature markets through restructuring.

(Aggressive  promotional campaigns)

Increase customer base through loyalty schemes

Market Development

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Selling of existing strategies to new and fresh markets:

Marketing products in new geographical settings.

Different distribution channels.

Different pricing policies for trans-market customer pulling.

Product Development:

Strategy that requires pushing new products into existing markets is

product development. This requires appealing and competent products

which can appeal existing markets.

Diversification

Diversification allows for businesses to introduce new products into

new markets. This strategy allows for a company to introduce and

dominate a market that is non-existent initially. There are too many risk

factors involved with this strategy and companies that take this route

for growth require deep pockets to suppress possible failure.

4.5 BCG Growth-Share Matrix

The Boston Consulting Group (BCG) growth-share matrix is a strategic

model to guide companies in resource allocation. It is without a doubt;

one of the most widely used model for portfolio management.

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Figure above shows the BCG Matrix model

The BCG matrix can be used to determine priorities that should be

given for the product portfolio of a company.

Companies with diversified product lines can use of the BCG Models

strategies for evaluating the organization’s resources for products.

Placing products in the BCG matrix allows for products to be split into

portfolios in the company- which ate the stars, cash cows, dogs and

question marks.

Stars (high growth, high market share)

Use huge amounts of cash

Generates large amount of revenue

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Leaders in the business and market

Cash Cows (low growth, high market share)  

Profits and cash generation is high

Low growth makes investments in product should be low for

higher profit

Always the initial foundation in a company

Dogs (low growth, low market share)

It is better to avoid products which are dogs in the company

Expensive to turn around and better to liquidate

Question Marks (high growth, low market share)

High Demands and low returns make them the most vulnerable

portfolio for products

In time will generate great absorption of internal resource

Investment should be at minimal or zero to generate positive

profit margins.

US- Bangla Airlines is doing Business in eight domestic routes. These

are Dhaka, Chittagong, CoxsBazer, Jessore, Sylhet, Saidpur, Rajshahi,

Barisal .Now will be discussed Profit analysis basis of BCG Matrix.

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Dhaka -Chittagong and CoxsBazer domestic route exist the Cash

cows that means profit and cash generation is high. Low growth

makes investments in product should be low for higher profit.

Dhaka-Sylhet domestic route also exist the Cash cows which

profits are high.

Dhaka –Rajshahi domestic route are existing dogs, here is not

profit gain .It is better to avoid this type of service.

Dhaka –Jessor national route are also existing dogs.

Dhaka-Barisal domestic route exist Questions Marks. That means

High Demands and low returns make them the most vulnerable

portfolio for services.

Dhaka- SaidPpur domestic route are existing Cash cows that

means profit is high.

4.6 Findings

Following finding has been found whilst working in US Bangla group

Management of US Bangla airlines is not up to the mark.

Some strategic decision proved as wrongly chosen

The turnover of the employees is high and most of the cases

employees point fingers to the salary structure

Scarcity of efficient engineers is bountiful.

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There is no financial department as US Bangla group merged in

accounts & finance section

There has no sales target of ticket seller.

Project analysis forecasting has proven as weaker numbers of

time.

Their Marketing system has proven as weaker than their few

competitors.

Chapter-Five

5.1 Recommendation

US-Bangla Airlines are existed some problems such as marketing

system and project analysis is weaker and employee turnover is high ,

technical core is weaker. This all problem will be solved if

management takes a good strategic policy and must will increase the

forecasting .

Conclusively, from the Ansoff Matrix and BCG matrix analysis, US-

Bangla Airlines should give priority in implementing the SO strategy of

using their strengths to gain in opportunities. This is especially evident

in US-Bangla Airlines Ansoff Matrix and BCG analysis. Their Star

products should be turned into cash cows as the market matures, as

minimal investment will turn in higher returns and profit.

This extra cash can be poured into improving on products that are in the

question marks category. As these products are risky and could turn

into dogs, mass amount of cash pouring and brand image renovation

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would be an advantage for US-Bangla Airlines. Implementing new

markets into existing markets and rising fast as the market leader will

be easier with strengths such as huge resource pool, established name in

the business and strong merger with other industry leaders.

Due to the scale and scope of US-Bangla Airlines’ operations it was

decided that the focus of this report would be surrounding scheduled

passenger flights. Further recommendations would include strategic

analysis to implement SBU level strategies. Due to lack of primary

research and restricted access to company in formation there may be

limitations in the findings and recommended strategy,

however it is believed that if the general direction of the suggested

strategic intent is followed it will lead to success.

Chapter-Six

6.1 Conclusion

US-Bangla Airlines Limited is becoming brand name airline of

Bangladesh. They are trying to enrich the organization, aircraft &

facility with modern policies. If they establish good Strategic

Management, they can be able to develop & compete with the global

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challenges. To compete with the other airlines US-Bangla should have

its master plan for global progress. To develop the brand name should

go for strategic analysis and implement the better strategic action. My

implementation of the study will provide a guideline for the

development of the organization if US-Bangla Airlines goes for Best

Strategic management Practices.

Chapter-Seven

Appendix

7.1 Bibliography:

1) https://en.wikipedia.org/wiki/Management

.2) Snyman, R., Kruger, C. J., (2004). The interdependency between

strategic management and strategic knowledge management.

Journal of Knowledge Management 8 (1), pp.5 – 19

3) French, S., (2009). Critiquing the language of strategic

management. Journal of Management Development. 28 (1),

pp.6 – 17

4) Brown, P., (2005). The evolving role of strategic management

development.  Journal of Management Development. 24 (3),

pp.209 – 222

5) Sweeney, M.T., (1994). Benchmarking for Strategic Manufacturing

Management.  International Journal of Operations & Production

Management. 14 (9), pp.4 – 15

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6) Kyrgidou, L.P., Hughes, M., (2010). Strategic entrepreneurship:

origins, core elements and research directions. European Business

Review. 22 (1), pp.43 – 63

7) www. http://us-bangla.com/

8) http://www.us-banglaairlines.com/

9) http://www.us-banglaairlines.com/about-us/

10) http://www.us-banglaairlines.com/destinations/

11) http://us-bangla.com/index.php?

option=com_content&view=article&id=52&Itemid=37

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