Table of Contents

Introduction ................................................................................................................................................. 1
Organizational Overview of Akij Group .................................................................................................. 1
Mission of Akij Group: ........................................................................................................................... 2
Vision of Akij Group: ............................................................................................................................. 3
Hierarchy of Akij Group: ...................................................................................................................... 3
Objectives of our Study .............................................................................................................................. 4
Portfolio of AKIJ Group ............................................................................................................................ 4
BCG Matrix Analysis ................................................................................................................................. 5
SWOT Analysis ........................................................................................................................................... 6
Strengths: ................................................................................................................................................. 6
Weaknesses: ............................................................................................................................................. 6
Opportunities: ......................................................................................................................................... 7
Threats: .................................................................................................................................................... 7
Industry Analysis ........................................................................................................................................ 7
Generic strategy: ..................................................................................................................................... 7
Cost Leadership .................................................................................................................................. 7
Focus: ................................................................................................................................................... 7
Differentiation ..................................................................................................................................... 8
Porter's Five Forces Model .................................................................................................................... 8
The threat of new entrants: ................................................................................................................ 8
The bargaining power of suppliers: .................................................................................................. 8
The bargaining power of buyers: ...................................................................................................... 8
The threat of substitutes: .................................................................................................................... 9
The intensity of competitive rivalry: ................................................................................................. 9
Recommendation......................................................................................................................................... 9
Conclusion ................................................................................................................................................. 10

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 Introduction
Akij group, which has been in business for almost 75 years, is now one of the largest industrial
conglomerates in Bangladesh. For a long time, “Akij” has been a well-known name in various
sectors including jute industry, readymade garments, cement, food & beverages, and
ceramics. Moreover, the country’s largest tobacco production and processing plant – Dhaka
tobacco industry – was also under this diversified company. However on July 7, 2018 the Dhaka
Tobacco industry was sold to Japan Tobacco international. At present, there are 21 different
companies under Akij group including Akij Shipping, Akij Agro-Processing, Akij Steel. Sheikh
Akij Uddin, the founder of the founder of Akij Group, started his business activities in the 1940s.
Following this, Sheikh Akij Uddin established Akij industrial Group in the ‘70s. Although not well
known to the present generation as a successful entrepreneur and industrialist, Sheikh Akij Uddin
is a well-known name in the business world of Bangladesh. Historical Background Enlightening
the past history of the business world in Bangladesh, AKIJ Group OF INDUSTRIES is considered
to be one of most profound and aged industries that is still sustaining with great success and
prosperity. It was more than fifty years the company emerged into the market, and it was as small
time jute traders. Entrepreneur, Founder and life time Chairman Late Mr. Sheikh AkijUddin then
initiated the business in 1950s with a single product of cigarette naming Akij Biri. This brand is
one of the biggest and well-known units of Akij Group and it is considered to be one of the oldest
and most well-known products across the country and in the few international market as well. Then
in the late 70s Dhaka Tobacco Industries came to the fold of Akij Group when government decide
to disinvest and hand over the factory to the private sector from the nationalized sector. It was the
first booming stage of Akij Group and from then onwards this entity diversified its business in
various product line and engrave the peak of success. From such small beginnings, it has expanded
into one of the top corporations in Bangladesh, and not only in size. Akij Group is proud of its
infallible quality and excellent service by valuing its consumers as unique individuals and trying
best to provide merchandise to suit the needs of each distinct consumers group. AKIJ group has
never limited its aims to profit making. Besides playing a part in developing the country
commercially, it has also worked hard to preserve its environment and culture. The company is
proud to say that the word wastage means little to them; all their factories have been constructed
with recycling and the environment in mind. The non-profit making concerns of the Group are
involved directly in sustaining the progress of Bangladesh. A large number of people are employed
by them, and cared for as members of the AKIJ family.

Organizational Overview of Akij Group

Akij Group is one of the largest and diversified conglomerates in Bangladesh with a wide range
of business interests in various industries. Founded in the year 1940, the group has now become a
symbol of quality and trust in the country.

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The following are the major industries in which Akij Group has a presence:

1. Tobacco: Akij Tobacco Company Limited is the largest tobacco company in Bangladesh
with a market share of more than 20%. It produces various tobacco products, including
cigarettes, bidis, and chewing tobacco.

2. Cement: Akij Cement Company Limited is one of the largest cement manufacturers in
Bangladesh with an annual production capacity of 1.2 million tons. The company produces
various types of cement, including Portland Composite Cement (PCC), Ordinary Portland
Cement (OPC), and Slag cement.

3. Pharmaceuticals: Akij Pharmaceuticals Ltd is a leading pharmaceutical company in

Bangladesh that produces a wide range of drugs, including antibiotics, anti-inflammatory,
and cardiovascular drugs.

4. Textile: Akij Textile Mills Ltd is a leading textile manufacturer in Bangladesh that
produces high-quality yarn, fabrics, and garments.

5. Food and Beverage: Akij Food and Beverage Ltd is a subsidiary of Akij Group that
produces various food and beverage products, including juice, mineral water, and
carbonated drinks.

6. Ceramics: Akij Ceramics Ltd is a leading ceramics manufacturer in Bangladesh that

produces high-quality tiles and sanitary ware products.

7. Plastics: Akij Plastics Ltd is a leading plastics manufacturer in Bangladesh that produces
various plastic products, including PVC pipes, fittings, and household products.

Apart from these industries, Akij Group also has interests in the printing and packaging industry,
real estate, and energy. With more than 25,000 employees, the group has a significant presence in
the Bangladesh economy and is committed to providing high-quality products and services to its
customers.

Mission of Akij Group:

The mission of Akij Group is to create sustainable value by producing high-quality products and
services that meet the needs of its customers. The company aims to achieve this mission by:

1. Continuously innovating and improving its products and processes to stay ahead of the
competition.

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 2. Developing and nurturing a talented and motivated workforce that is committed to
excellence.
3. Maintaining the highest standards of ethical conduct and corporate responsibility.
4. Building strong and lasting relationships with its customers, suppliers, and stakeholders.
5. Contributing to the social and economic development of Bangladesh through its business
activities and philanthropic initiatives.

Overall, Akij Group strives to be a responsible corporate citizen that creates long-term value for
all its stakeholders while maintaining its position as a leader in the Bangladesh business
community.

Vision of Akij Group:

The vision of Akij Group is to be the most respected Company in Bangladesh by commitment to
quality. Akij group needs to be 1st choice, most preferred, trusted, admired for its consumers and
stake holders and be the best among the competitors, maintaining international food & beverage
standards. To become the leading business conglomerate in Bangladesh, delivering superior value
to customers, shareholders, and society.

Hierarchy of Akij Group:

The hierarchy of Akij Group typically follows a traditional corporate structure with different levels
of management and staff. The exact structure may vary depending on the specific industry or
business unit within the conglomerate. However, a general hierarchy of Akij Group may include:

1. Chairman: The Chairman is the topmost executive in Akij Group and provides strategic
direction to the organization.

2. Board of Directors: The Board of Directors oversees the overall management of the
company and provides guidance on major business decisions.

3. Executive Management: The Executive Management team includes senior executives

such as CEO, COO, CFO, CMO, and other Vice Presidents who are responsible for
executing the company's strategy and managing its day-to-day operations.

4. Divisional Heads: Divisional heads are responsible for managing specific business units
or divisions within Akij Group, such as textiles, tobacco, ceramics, food and beverage,
healthcare, and more.

5. Departmental Heads: Departmental heads are responsible for managing specific

departments within each division, such as human resources, finance, marketing, operations,
and more.

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 6. Supervisors: Supervisors are responsible for managing teams of employees within each
department and ensuring that daily tasks are completed efficiently.

7. Staff: Staff members are the employees who carry out the daily operations of the company
and perform specific tasks to support the overall business objectives.

Overall, this hierarchy allows for clear lines of communication and accountability throughout Akij
Group, enabling the company to achieve its vision and mission while providing value to its
customers, shareholders, and society.

Objectives of our Study

The main objective of our study is –
1. To analyze the historical background of Akij Group.
2. To analyze the organizational overview (vision, mission, objective) of Akij group.
3. To know about the organizational profile, business strategy and operational activities of
Akij group.
4. To analyze the SWOT analysis of Akij Group
5. To identify the internal factors that can impact on the growth of Akij group.
6. To find out the challenges and opportunities that can impact on the growth of Akij Group.
7. To provide some recommendations that can be solve the challenges of the lack of
marketing activities of Akij Group.

Portfolio of AKIJ Group

Akij Group is a diversified conglomerate in Bangladesh with a wide range of investments in
various industries. Here's a brief overview of the portfolio of Akij Group:

Tobacco: Akij Group's tobacco business is one of the largest in Bangladesh and includes the
production of cigarettes, bidi, and chewing tobacco.

Textiles: Akij Group has invested in textile manufacturing, including the production of yarn,
fabrics, and garments.

Cement: Akij Group has a significant presence in the cement industry in Bangladesh, with
investments in cement manufacturing and distribution.

Ceramics: Akij Group has invested in ceramic tile production, including wall and floor tiles.

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Printing and Packaging: Akij Group has a strong presence in the printing and packaging industry,
with investments in printing, packaging, and publishing.

Healthcare: Akij Group has invested in the healthcare industry, including the production and
distribution of pharmaceuticals, medical devices, and hospital equipment.

Food and Beverage: Akij Group has invested in the food and beverage industry, including the
production and distribution of snacks, soft drinks, and bottled water.

Real Estate: Akij Group has invested in real estate development, including residential and
commercial properties.

Overall, Akij Group's portfolio is diverse and spread across many industries. This diversification
can help to mitigate risk and ensure stable growth, although it can also make it challenging to
manage and optimize the portfolio.

BCG Matrix Analysis

BCG matrix (also known as the Boston Consulting Group matrix) is a strategic tool used for
analyzing a company's portfolio of products or business units. The matrix classifies the products
or business units into four categories based on their relative market share and market growth rate.
Here's a BCG matrix analysis of Akij Group:

Akij Group is a diversified conglomerate with businesses in different sectors such as textiles,
tobacco, cement, ceramics, and more. To analyze the portfolio of Akij Group, we need to consider
its different business units or product lines.

Stars: These are products or business units that have a high market share in a high-growth market.
They require a lot of investment to maintain their position, but they also have the potential for high
profits. For Akij Group, some potential star business units could be their tobacco, food and
beverage businesses. These are all growing markets in Bangladesh where Akij Group has a strong
market share.

Cash Cows: These are products or business units that have a high market share in a low-growth
market. They generate a lot of cash for the company but do not require much investment to
maintain their position. For Akij Group, some potential cash cow business units could be their
textile and cement businesses. These are all mature markets in Bangladesh where Akij Group has
a strong market share.

Question Marks: These are products or business units that have a low market share in a high-
growth market. They require a lot of investment to grow, and it is uncertain whether they will be
successful. For Akij Group, some potential question mark business units could be their electronics
or real estate businesses. These are both growing markets in Bangladesh, but Akij Group's market
share is relatively low compared to other competitors in these markets.

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Dogs: Akij Group's dogs are likely to be products or business units with low market share and low
market growth rates. For example, if Akij Group has a low market share and limited growth
potential in the declining printing and packaging industry, its printing and packaging industry
product line is considered as a dog. These products or business units do not generate significant
cash flow and require minimal investment.

Overall, the BCG matrix analysis suggests that Akij Group has a diversified portfolio with some
strong market positions and potential for growth. However, they also have some businesses that
require significant investment to grow and may not be as successful. The company should consider
investing in its star business units and divesting or restructuring its question mark or dog business
units to improve its overall portfolio performance.

SWOT Analysis

SWOT analysis is a useful tool for understanding a business's strengths, weaknesses, opportunities,
and threats. Here is a SWOT analysis of Akij Group:

Strengths:
a) Diversified portfolio: Akij Group has a diversified portfolio of businesses that includes textiles,
tobacco, cement, ceramics, and more. This diversification helps to reduce the impact of economic
downturns on any one sector.
b) Strong brand: The Akij brand is well-known in Bangladesh and has a reputation for quality
and reliability. Quick Establishment of Brands like Akij Plastics Limited, Akij Cables limited,
Akij Cement Company Ltd, Speed, Mojo, and Frutika made Akij group more reliable and
trustworthy.
c) Strong distribution network: The company has a strong distribution network that helps ensure
its products are widely available nationwide. In order to improve distribution, AFBL keeps a
number of depots across the country. One of Akij Group’s main plants is situated in the Barobaria,
Dhamrai neighbourhood of Dhaka, which is regarded as the heart of the city.

Weaknesses:
a) Limited international presence: Akij Group has a limited international presence, which may
limit its growth potential.
b) Dependence on a few key products: Some of the businesses in the Akij Group portfolio, such
as tobacco and textiles, account for a large portion of the company's revenue. This dependence on
a few key products creates vulnerability to changes in market demand.
c) Limited technology adoption: Akij Group may not be investing enough in modern technology
to improve efficiency and productivity in its operations.
d) Lack of Digital Marketing Activities: The usage of digital marketing substantially helps in
product promotion. Facebook and YouTube are the only marketing promotion channels used by

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the organization because the AFBL digital marketing section lacks strength. They are having
trouble connecting with all of their ideal clients (Jagaran, 2021).

Opportunities:
a) Emerging market potential: Bangladesh is an emerging market with a growing middle class
and an increasing demand for consumer goods. This provides a great opportunity for Akij Group
to expand its business.
b) Potential for international expansion: Akij Group has the potential to expand its businesses
internationally, especially in neighbouring countries such as India and Nepal.
c) Increased investment in technology: By investing in new technologies, such as automation
and artificial intelligence, Akij Group can improve efficiency and productivity, and reduce costs.

Threats:
a) Competition: Akij Group faces stiff competition from both local and international competitors
in many of its businesses. AKIJ Group has set such a high bar for quality, subsequent
neighbourhood companies will have a difficult time competing with them. However, if foreign
organizations place a greater emphasis on strategies that differentiate their products, they may find
that it is easier to acquire their existing customer base.
b) Economic and political instability: Bangladesh has experienced political and economic
instability in the past, which can negatively impact businesses such as Akij Group. Also, the
regulatory environment in Bangladesh can be challenging, with frequent changes to laws and
regulations, and inconsistent enforcement.

Industry Analysis
Akij Group is a diversified business conglomerate in Bangladesh with a significant presence in
various industries such as tobacco, textiles, food and beverage, cement, ceramics, and more. Akij
Group utilizes a combination of cost leadership, focus, and differentiation strategies in its
operations.
Generic strategy:
Cost Leadership: Akij Group focuses on cost leadership by optimizing its production processes
and minimizing its costs. The company strives to produce its products at the lowest possible cost
while maintaining quality. This strategy allows Akij Group to offer its products at competitive
prices and gain a larger market share.

Focus: Akij Group also employs a focus strategy by concentrating its resources and efforts on a
in these industries and provide better products and services to its customers. For example, Akij
Group's tobacco business is a market leader in Bangladesh, and the company has focused on
expanding its operations in this industry.

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Differentiation: Akij Group differentiates itself from its competitors by offering unique products
and services. For instance, the company has introduced many innovative products in the food and
beverage industry, such as flavored milk and energy drinks. This strategy helps Akij Group to
create brand loyalty and a loyal customer base.
In conclusion, Akij Group employs a combination of cost leadership, focus, and differentiation
strategies in its operations to gain a competitive advantage in various industries.

Porter's Five Forces Model

The five forces include:
1. the threat of new entrants
2. the bargaining power of suppliers
3. The bargaining power of buyers
4. The threat of substitutes
5. The intensity of competitive rivalry
Now, let's apply this model to Akij Group, a Bangladeshi conglomerate with interests in various
industries such as textiles, tobacco, food and beverage, cement, ceramics, and more.

The threat of new entrants:

Akij Group operates in multiple industries, some of which may have high entry barriers, such as
the tobacco industry, where the government regulates entry and there are significant costs
associated with obtaining the necessary licenses and permits. However, some other industries, such
as the food and beverage industry, may have lower barriers to entry, which could increase the
threat of new entrants. Overall, the threat of new entrants for Akij Group is moderate.

The bargaining power of suppliers:

Akij Group sources raw materials from various suppliers. Some of these suppliers may have
significant bargaining power due to their size or unique capabilities. However, Akij Group may
also have the ability to switch to alternative suppliers if necessary. Overall, the bargaining power
of suppliers for Akij Group is moderate.

The bargaining power of buyers:

Akij Group sells its products to both individual customers and other businesses. The bargaining
power of buyers may vary depending on the industry and the specific products being sold. For
example, in the tobacco industry, customers may have limited bargaining power due to the
addictive nature of the product. However, in other industries, such as the food and beverage
industry, customers may have more bargaining power due to the availability of alternative
products. Overall, the bargaining power of buyers for Akij Group is moderate.

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The threat of substitutes:
Akij Group operates in several industries where there may be substitutes for its products. For
example, in the food and beverage industry, there may be many alternative brands and products
that customers can choose from. However, in other industries, such as the tobacco industry, the
threat of substitutes may be lower due to the addictive nature of the product. Overall, the threat of
substitutes for Akij Group is moderate.

The intensity of competitive rivalry:

Akij Group operates in several industries that are highly competitive. For example, the cement
industry in Bangladesh is highly competitive, with several large players operating in the market.
However, in some other industries, such as the tobacco industry, the competitive rivalry may be
lower due to government regulations and limited entry. Overall, the intensity of competitive rivalry
for Akij Group is moderate to high.

In conclusion, Akij Group operates in several industries with varying levels of competition and
entry barriers. Overall, the company faces moderate levels of threat from new entrants, bargaining
power of suppliers and buyers, and substitutes. The intensity of competitive rivalry is moderate to
high.

Recommendation
Here are some general recommendations that can help Akij Group to be better in Bangladesh:

Emphasize on sustainability: Akij Group can take steps to minimize its environmental impact
and promote sustainable business practices. It can focus on reducing carbon footprint, conserving
energy and water, and using eco-friendly materials.
Invest in research and development: Akij Group can invest more in research and development to
improve its products and services. This can help the company stay ahead of the competition and
offer innovative solutions to its customers.
Ensure fair labor practices: Akij Group can ensure that its workers are treated fairly and provided
with safe working conditions. This can help the company attract and retain top talent, as well as
maintain a positive reputation in the market.
Engage in philanthropic activities: Akij Group can engage in philanthropic activities and
contribute to social causes in Bangladesh. This can help the company build a strong relationship
with the community and enhance its brand image.
Maintain ethical business practices: Akij Group can maintain ethical business practices and
ensure that its operations are transparent and accountable. This can help the company build trust
among its stakeholders and enhance its credibility in the market.

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 Conclusion
In conclusion, Akij Group is a leading industrial conglomerate with a diverse range of businesses
and a strong presence in several key sectors, including power, construction, and real estate. With
a focus on innovation and sustainable development, Akij Group has established a reputation for
quality, reliability, and professionalism. Its commitment to excellence, combined with its global
reach and strong financial position, make Akij Group a force to be reckoned with in the industrial
sector.

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