Short-notes:
1. Saturated market: A saturated market is one in which there is more
supply than demand. This can happen when there are too many businesses
competing for the same customers, or when the market is growing too slowly
to support the number of businesses already in it. Saturated markets can be
difficult for businesses to succeed in, as they may have to lower prices or offer
discounts in order to attract customers.
2. Economy of scale: Economy of scale is a phenomenon that occurs when
the average cost of production decreases as the output of a good or service
increases. This is because fixed costs, such as the cost of machinery and
equipment, can be spread out over a larger number of units, which lowers the
cost per unit. An economy of scale can give businesses a competitive
advantage, as it allows them to produce goods or services at a lower cost than
their competitors.
3. Six Sigma: Six Sigma is a business methodology for quality improvement
that measures how many defects there are in a current process and seeks to
systematically eliminate them. In 1984, a Motorola engineer named Bill Smith
developed the Six Sigma management system. Six Sigma is based on the
statistical principle that 99.99966% of products or services should be free of
defects
4. PESTEL analysis: PESTEL analysis is a strategic planning tool that helps
businesses identify and assess the external factors that can impact their
business. PESTEL stands for Political, Economic, Social, Technological,
Environmental, and Legal. By understanding these factors, businesses can
better position themselves to succeed in the marketplace.
5. SWOT analysis: A SWOT analysis is a framework used in a business’s
strategic planning to evaluate its competitive positioning in the marketplace.
The analysis looks at four key characteristics that are typically used to
compare how competitive the business can be within its industry. SWOT
stands for Strengths, Weaknesses, Opportunities, and Threats. By
understanding these factors, businesses can better develop strategies to
achieve their goals.
6. Turnkey projects: Turnkey projects are projects that are fully designed,
built, and commissioned by a single contractor. The contractor is responsible
for all aspects of the project, from planning and design to construction and
commissioning. Once the project is complete, it is turned over to the client in
a fully operational state. For example, Padma Bridge
7. Management contracts: Management contracts are legal agreements that
enable one company to have control of another business's operations. Business
owners often sign these written agreements directly with the management
company. The contractor is responsible for the day-to-day operations of the
client's business, including hiring and firing employees, setting budgets, and
making strategic decisions. Most management contracts are task-specific and
focused on the work itself, not established outcomes.
8. Strategic Alliances: Strategic alliances are agreements between two or more
companies to work together on a specific project or goal but remain independent. Alliances
can be formal or informal, and they can be used to share resources, expertise, or markets.
For example, Robi and Mastercard signed a strategic alliance agreement in 2022,
Grameenphone and Telenor, BRAC and the World Bank.
9. Overseas Assembly: Overseas assembly is the process of manufacturing
products in a foreign country. Companies may choose to assemble their
products overseas for a variety of reasons, such as lower labor costs, access to
new markets, or avoiding tariffs or other trade restrictions. For example
H&M, Walt Disney Company, Nike.
10.Foreign direct investment: (FDI) is an investment made by a company
in another country. FDI can take many forms, such as building a new factory,
buying an existing company, or investing in a joint venture. FDI can help
companies to expand their markets, access new resources, or reduce their
costs. For example Samsung, Walton, Grameenphone, Shakti, etc.
11.Mergers & acquisitions: (M&A) are transactions in which one company
acquires another company or combines two companies into one. M&A can be
used to expand a company's market share, acquire new technologies, or enter
new markets. For example, Unilever's acquisition of GSK Bangladesh: In
June 2020.
12.Joint ventures: Joint ventures are businesses that are owned and operated
by two or more companies. Joint ventures can be used to share risks and
resources or to enter new markets. For example, BD-Gulf Fertilizer Company
Limited, and Bangladesh-China Power Company Limited.
13.Wholly-owned subsidiaries: Wholly-owned subsidiaries are companies
that are owned by another company. Wholly owned subsidiaries give the
parent company complete control over the subsidiary. For example Samsung
Bangladesh, Citycell, LG Electronics Bangladesh.