Prepared By:

Md. Anisul Haque

Nuzhat Karim Nisha

A Cased Study on Aarong

Contents

Introduction

Company Insights

Business Analysis

Challenges & Recommendations

Conclusion & Findings

“Introduction- Rise of an Enterprise”

Introduction

Aarong - created in 1978 to provide

Employment

Income generation

Social development opportunities

In 30 years, from a single shop, Aarong had

grown into one of Bangladesh’s biggest retail

chains, with 15 stores in major cities including

Dhaka, Chittagong, Khulna and Sylhet and

one in UK

Aarong embraces and nurtures a

diverse representation of 65,000

artisans, 85% of whom are

women.

HistoryAarong began as a cause – a means to an end for a quiet organization

fighting to uphold the dignity of the marginalized.

1876BRAC- a Bangladeshi NGO dedicated to alleviating poverty

and empowering the poor,

TodayAarong’s reach has spread beyond Manikganj to the rest of the country. It has grown into a thriving international enterprise showcasing ethnic wear to beautiful crafts from silks, handloom cotton, Endi to terracotta, bamboo, jute and much more.

Currentlya significant portion of Aarong earnings go directly into financing the NGO‟s development programs in healthcare, education as well as economic and social development.

History

A: Active: we will execute our plans in an active manner.

A: Appealing: we will make ourselves and our workplace appealing.

R: Reliable: we will carry out our duties in a reliable manner.

O: Outstanding: we will perform in an outstanding manner.

N: Novel: we will always look for novel creative ways of improving everything we do.

G: Genuine: we will be genuine in our thoughts and actions.

Aarong provides the following wide range of services to its workers and suppliers:

• Spot payment on product delivery to encourage efficiency and productivity

• Reach out to producers in remote areas to ensure fair value for their efforts

• Marketing communication and information for artisans

• Advances against purchase orders where necessary

• Training & Education in skill development to raise product quality and marketability

• Product Design and Support in Product Development

• Quality Control to increase producer awareness of the importance of quality

“Company Insights”

Aarong’s Vision

To create a world free from all forms of exploitation

and discrimination where everyone has the opportunity

to realize their potential.

Aarong’sMission

To empower people and communities in situations of poverty,

illiteracy, disease and social injustice. Our interventions aim to

achieve large scale, positive changes through economic and

social programs that enable men and women to realize their

potential.

• Stage 1: Planning Stage and Product Requirements

• Stage 2: Design

• Stage 3: Costing and Merchandising

• Stage 4: Quality Control

• Stage 5: Finished Storage and Inventory Control

Production

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marketing

“Business Analysis”

Political Factors

According to political agreement of Bangladesh government Aarong at present export their products in UK and USA.

Economic Factors

Aarong concentrates on economic factors and they ask customer for tax through VAT with the actual price of the product.

Social Factor

Aarong follows the social factor and by concentrating on that, it determine its target customer and marketing strategies.

Technological Factors

Aarong established online shopping for distributing their product to their target customer and also leverages social media as a means of reaching the target customers.

Environmental Factors

Aarong considers environmental factor important due to the increasing scarcity of raw materials, pollution targets and doing business as an ethical organization.

Legal Factors

Aarong follows legal factors including–health & safety, equal opportunities, advertising standards, consumer rights & laws, product safety.

PESTELAnalysis

SWoT Analysis

• Leading brand reputation

• Variety of products

• Specialist marketing expertise

• Customer loyalty

• High production quality

• Maximum level of sales

• Strong management

• Low product damage rate

• Practice of indigenous customs and values

• Excellent working condition for its employees

Strengths:

SWoT Analysis

• Price is higher

• Limited outlets all over Bangladesh

• Vulnerable to producer

• No direct market experience

• Limited budget for research and development

• Limited financial support

• Sales persons need more training

Weaknesses:

• Variety of products in future

• New distribution channels

• Top grabs in international market

• Capture more market share

• New market segmentation

• Seasonal fashion influence

• Cost advantages

Opportunities:

• Rise of the competition

• Price wars with competitors

• Competitors have some superior products

• Changing technology

• Political instability

• Economic conditions

Threats:

SWoT Analysis

“Challenges & Recommendations”

ChallengesThe production structure involved a dual challenge: Quality Control and Scale of Production

How to maintain demand is the key issue?

Recommendations

Recommendations

“Conclusion & Findings”

Conclusion