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mgt368 Localentrepreneurialcase Esq
mgt368 Localentrepreneurialcase Esq
mgt368 Localentrepreneurialcase Esq
Submitted to:
Esnaina Quader
Lecturer
Department of Management
School of Business and Economics
North South University.
Date of Submission
22nd March, 2019.
LOCAL ENTREPRENEURIAL CASE
Contents
Local Entrepreneurial Case 1: Spacedge
The Story......................................................................................................................................... 4
Company Information ..................................................................................................................... 5
Business Model Canvas .................................................................................................................. 6
“What Actually Motivates Me to Do My Work?” .......................................................................... 7
The Hurdles or Challenges the Firm Is Currently Facing ............................................................... 7
Critical Success Factors .................................................................................................................. 7
Advices for The Young Entrepreneurs ........................................................................................... 8
Local Entrepreneurial Case 2: Skyflora
Background of Sky flora ................................................................................................................. 9
Story of Entrepreneur ...................................................................................................................... 9
Products and Services ................................................................................................................... 10
Niche market ................................................................................................................................. 11
Business Canvas Model ................................................................................................................ 12
Raising of Risk Capital ................................................................................................................. 13
Business Strategy .......................................................................................................................... 13
Marketing Plan .............................................................................................................................. 13
Target Market................................................................................................................................ 15
Analysis of Competitors ............................................................................................................... 15
Critical Success Point ................................................................................................................... 16
Challenges ..................................................................................................................................... 16
Local Entrepreneurial Case 3: Bricks & Bridges
Overview of the Company: ........................................................................................................... 17
Story of the Entrepreneur: ............................................................................................................. 17
Business Model Canvas ................................................................................................................ 19
Raising Risk of Capital ................................................................................................................. 20
Business Strategy .......................................................................................................................... 20
Marketing Plan .............................................................................................................................. 21
Target Market................................................................................................................................ 21
Competitor Analysis ..................................................................................................................... 21
Critical Success Factors ................................................................................................................ 22
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Challenges ..................................................................................................................................... 22
References ..................................................................................................................................... 23
Appendices of Local Entrepreneurial Case 1: Spacedge .............................................................. 24
Appendices of Local Entrepreneurial Case 2: Skyflora ................................................................ 25
Appendices of Local Entrepreneurial Case 1: Spacedge .............................................................. 26
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monitored his surrounding environment in which he saw the window of opportunity is open for
him. High self-efficacy i.e. the conviction that of being successful led Mr. Arman to set up his own
firm named “Spacedge” in 2015.
Company Information
Spacedge is committed to provide the highest quality of professional services, through innovative
design, effective project management. Spacedge is currently providing both architectural and
interior design services targeted to homeowners, restaurant owners as well as business
organization. So, it can be said that Spacedge is following a broad market scope strategy to deliver
its services to clients.
During its inception, Mr. Arman had invested from his savings which was sufficient enough to
rent an office for his firm where he could do all his works. Since he had enough working capital
to run the operations, he didn’t have to take any loans from the banks. The main source of his
savings were the savings from his salary of his first job, the numerous projects that he had done of
his family and friends and the profits that had been generated from DIA. Since the company
provides architectural and interior design services, a portion, ranging from 10-50% depending on
the size of the project, of the working capital that are required for completing the projects are taken
in advance from the clients. Some of the worth mentioning projects, that have been done by
Spacedge are: Uddipon, Kamalir Bari, GP House of Rajshahi, Vacation House at Bashundhara
Residential Area covering an area of 20 Katha, interior design of Playpen School, office space
design of GLT Group, Café Entro, El Dorado Revised, Cine Café,
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Key Partners Key Activities Value Proposition Customer Relationships Customer Segments
Raw material Architectural Design, Creating innvoative as well Client oriented Size: Mass Market.
suppliers, Interior Designs, Booth as customized designs that Service i.e. providing Location: Dhaka City,
Workers, Designs for fairs. meet the needs of clients. Customized services, informing Suburb Areas.
Business Organizations.
Office Rent, Employee Salaries, Wages of workers, Service Revenue generated from making architectural and
interior designs.
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“Of course, I cannot deny that the profit I generate from each project motivates me a lot, but there
is something more that motivates me a lot more to continue my works in future and that is, the
happiness that I get when I see my ideas turned into reality.”
The hurdles or challenges that the firm is currently facing is getting payments from the clients in
due time. As mentioned earlier, Mr. Arman takes a portion from the clients before starting any
project and the rest of the amount to complete that project is initially provided by him, sometimes
clients make delay to pay the rest amount of the projects i.e. accounts receivable turnover of
Spacedge is high. This ultimately creates barrier in maintaining liquidity of the firm.
In order to overcome this challenge, Mr. Arman has started doing legal contracts with the clients
before starting any project. The contract specifies each and every detail regarding the project
especially a suitable date is fixed upon discussion with the clients to pay out the due amount in
exchange for the delivery of the projects.
1. Creative Designs: Mr. Arman quoted, “Architecture is just like cooking and architects
are nothing but cooks. All the ingredients are there and you just need to know the right
recipe for the right item. A recipe has no soul, you must bring soul to it. No one is born a
great cook, you have to learn by doing it.” From his quote it is evident that, Mr. Arman
experiments a lot with his designs and always strive to improve it which has become the
most important success factor for his firm.
2. Positive Word of Mouth; Mr. Arman is an experienced architect and his designs have
been always praised by his clients. His motive is to maintain 100% client satisfaction and
which is why his previous clients have referred him to others do their projects. This has
ultimately led to the creation of a chain of customers. As a result, Mr. Arman has never
struggled to acquire any projects from the beginning of his career as an architect.
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Mr. Arman quoted, “Keep on experimenting with your works, there will be times when you will
fail and also there will be times when you will find something new and interesting which be valued
by someone one day. You have to believe that you are doing the right thing and you have to focus
on it. The more you focus, the more you will be successful.”
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Story of Entrepreneur
The story of S is actually a tale of Sky flora and Mr. Sajid Khan, the founder and the CEO of the
organization. We will get to know more about Sky flora but now can take ride with Mr. Sajid
Khan.
Sajid, a 23-year-old young head took the risk of creating a kind of business which is typically a
challenging one. He is a student of North South University. He is doing BBA in Accounting. In
this era of modernization many enthusiasts, passionate young people are wanting to set up business
but, how many of them want to make profit by resolving climate issues. So, this is Sajid Khan for
young who dreamt of a fresh air, healthy living and a green city.
If we look at the venture of Mr. Sajid Khan we will see it has a huge opportunity to go further.
Sky flora basically targets Dhaka as the main market place. Beside this sky flora providing their
services in Narayan gang, Chittagong and Tangail. Sky flora is planning to cover more places.
Though it has an online platform of doing business but Skyflora, now running two offices. Their
head office is Shere Bangla Nagar and another branches office at Uttara. It owns a nursery at
Uttara.
Mr. Sajid is basically a freedom loving person. He said he would have never satisfied him by
working in constraints. Actually, he always wanted to do something by his own. By his activity
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he tried to find solution of society problems. And that’s how he became a social entrepreneur. As
said when he thinks the nature is going to be fresh again the city would be more living friendly.
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Niche market
Sky flora company market is still a niche. They provide customized package services& offering
small range product so that customers can get the service according to the need. All of their services
are done by experienced professionals. Besides that, they offer post service maintenance on
demand.
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Business Strategy
Mr Sajid Khan follows following business strategy:
Product strategy: Mr Sajid Khan’s product strategy is to provide all kind of trees seeds. They
provide home gardeners, flower and fruit growers, farmers and foresters with seeds and seedlings
of specified qualities. He makes his web site using HTML strategy. He uses the hybrid structure
because it gives the potential competitive advantage in his business. The advantages are increased
efficiency, unity customers, increase flexibility. This structure helps to more visualize their
categorical products.
Pricing strategy: Mr Sajid Khan’s pricing strategy depend on types of tree and trees size. He takes
cheaper price than other competitors. For the old customers he provides flower tub, discount and
maintenance services so that those who are not customer of his nursery they are inspire.
Distribution strategy: Their distribution strategy is from nursery and website to customer.
Customers can easily find their useful tree and seed. He also provides home delivery services.
Promotion strategy: For promotion strategy they use social campaign strategy and digital
marketing system. They took different types of awareness meeting, free tree distribution in school,
college, university and society. They have a Face-book page so that customers can get notification
anything products are available in website. Their new program in 2019, they will distribute more
than 25000 free trees for people among different areas of Dhaka.
Marketing Plan
Because of Sajid Khan’s business existence on nursery place based. Mainly the manager of
Skyflora Mr. Ullash communicate face to face to the customer. When customers come to the
nursery the manager describes about the product and the benefits of various trees and their services.
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Every month they go to school, college and amusement park to encourage the people for buying
and planting trees. Another way they are marketing their product through online website and
Facebook page. They provide several promotional discounts or offers to their customers to acquire
them & make them consensus of the newly offered products and services.
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Target Market
The target market is so open and actually there is no specific boundary in the region.
Age range: People of all ages Mainly Dhaka Hopes to use the most useful
trees and seeds.
Rooftop garden, School, Whole world Those who love the green
College, University, nature.
Corporate Office
Analysis of Competitors
In this type of competitive market in Bangladesh, similar business entrants are always been a threat
for the business. They have faced the same ‘Banayan.com’ is one of their main competitors in
market. With the help of intellectual property and his creative problem-solving ability he always
created new ideas to step up and take first-mover advantage.
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❖ Apart from land, investment in nursery is very low. Plants and seed can bring in very
low price.
❖ There are many Government training center available. So, Mr. Sajid Khan can easily get
free help from these institutions.
❖ Competition is very low. There are very few nurseries in Dhaka city. So, rivalry is low.
❖ Cheap labor cost another important factor for successful business. In this business, very
few labors are needed and cost is very low.
❖ Mr. Sajid Khan also gives home delivery service, which is very rare in this sector.
❖ , Mr. Sajid Khan is very active in CSR activities. He personally teaches benefit of tree
plantation in different school and organization also campaign, rally etc.
Challenges
❖ Shortage of land in Dhaka city. In Dhaka city open land is very short and price of land is
very expensive. People is more willing to invest in real state due to higher profit and
nursery business is less profitable compare to real state.
❖ Air pollution and Dust is bad for nursery and Dhaka is one the most polluted city among
the world. For which is very critical to take care of the plants.
❖ Plant has basically no switching cost and there no brand value.so if new nursery arrives in
the area, sell will most likely go down.
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Within a very short time of its birth Bricks & Bridges Ltd has been entirely successful in
establishing its name in the construction industry. It has also succeeded in gaining fame and its
name as one of the leading construction company in Bangladesh. It has worked with various kinds
of clients across its short lifespan such as Government, Non-Government, and many different kinds
of private organizations. The respectable reputation it has built was exceedingly rewarded by
collaborating in contracts with a number of international organizations, who are currently working
in Bangladesh. Bricks & Bridges Ltd is in really good terms with Obayashi Corporation which is
one of the largest Japanese construction companies across the world, and are accomplishing a
portion of their three bridge projects.
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Glasgow. He has been working comprehensively in the field for more than 30years. He has worked
under many organizations which were both private and government and is highly well-known in
the town of Sylhet for his huge accomplishments in the town of Sylhet, by creating more the first
three skyscrapers there and later on more, one of which belongs to Jalalabad Gas. Previously, he
was positioned as Executive Director at the predecessor of the company, Merit Real Estate &
Development. He is also one of the most well-known Engineers across the entire country for his
exceeding hard work and honesty.
His main motive for starting this business is when he was capable to know his own caliber. He
found out that he is capable of generate more service orients, which highly worked as a
motivational factor for him.
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• Clients • Client
feedbacks
• Government
• Private Key Resources: Channels:
Organizations
• Machinery • Tender base
• Equipment
• Online media
• Dredgers
• Labor
• Materials
• Wages of workers
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Bricks & Bridges was lucky enough not to strive for hardship more in raising capital. The company
already had known clients. These clients were known to the Executive Body of the organization.
With the trust they had with the organization a lot of advance payments were made. When a small
amount of capital generated the organization was ready to take loans for further expansion. The
luck of this organization had favored beautifully while raising capital and the management staff
are really grateful for this, because they did not have to face so much hassle for this situation.
This organization is not of sole proprietorship. Half of the share of this organization is owned by
Impress Newtex Composite Textiles Ltd. It is a subsidiary of the Impress Group of Bangladesh.
The chairman of Impress Newtex Composite Textiles Ltd is also a chairman of Bricks & Bridges
Ltd. Their contribution to funding and raise has highly helped the organization in proceeding
further. Along with capital the organization also enjoys some of the benefits of Impress Group as
well. For Example, banking facilities are one of the extra added benefit.
All the investors are updated on a routine basis to be assured in which direction the company is
heading, and how it is achieving its current goals and objectives. The partners consist of close
friends of the entrepreneur. So, it had used the strategy of internally generated funds at first before
going for external fund-raising strategy.
Business Strategy
The organization had come up with its own strategies by which they have been successful in
implementation quite a number of times. The strategy is called ‘Project Planning’. It has been used
in their project of EPZ in Narayanganj which was effectively executed. The organization had dealt
with a lot less hassle than operations of previous projects.
The company also encourages employee participation in the decision-making processes. It follows
the set of a traditionally managed entrepreneur firm.
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Marketing Plan
As they are REAL ESTATE & DEVELOPMENT COMPANY, they have an uncertain market.
They search their customers on tender basis. It has no marketing team so they have less scope or
it is very hard to reach their targeted customers. Their main focus is on broad market scope strategy
because their business is based on government tenders, which is hard to get because of the
competition. In this case, the company’s goodwill matter, and companies with high goodwill are
more successful in getting tenders easily. They also provide service to private sector by
constructing industrial buildings and factories.
Target Market
Government Tenders: This is their main target customer; they take tender from the government
project. The government is the most profitable customer for them because in case of government
project the hassle in payment process in significantly less.
Private or Commercial Buildings: They also provide service to private sectors by constructing
industrial buildings and factories such as a commercial Building in Purana Palton, Dhaka for
ABED Holdings Ltd. Dhaka, Printing Factory Building for Impress Newtex Group at Gorai,
Mirzapur etc. This private sector also a profitable sector for them but sometimes this sector create
problem with payment.
Geography: Though they provide service all over the Bangladesh, they provided fewer services
in Dhaka city. Their main focus is out of Dhaka city projects. There are currently 8 projects that
are currently going on in places like Tangail, Rajshahi, Shatkhira and Sylhet.
Competitor Analysis
This type of business has very competitive market in Bangladesh because similar business entrants
and rising competition are always been a threat for it. In here, price is great factor. With the help
of goodwill of the company and his creative problem-solving ability he always created new ideas
to step up and take first-mover advantage.
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Challenges
• Fulfillment the expectation of customers: This is important for making long-term
relation with customer and for goodwill. The company’s main focus in government tender
which depends on the goodwill of the company.
• Payment problem: There are some payment problems in private sector. In the beginning
of the company, they conducted a project with Premier Bank which was very big, difficult
project for the company on that time. Though the project was finished within the time, the
Premier Bank was made problem with payment.
• Employee turnover for low salary: The Company gives less salary than government
regulated pay scale. As they are small company, they cannot afford that pay scale which
arise employee turnover.
• Rising Competition: This type of business has a very competitive market in Bangladesh
because similar business entrants and rising competition are always a threat. The only
reason is because of price which is great factor.
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References
https://www.facebook.com/pg/SkyFlora.org/community/
https://www.facebook.com/pg/SkyFlora.org/events/?ref=page_internal
https://www.facebook.com/pg/SkyFlora.org/shop/?ref=page_internal
https://www.facebook.com/SkyFlora.org/?epa=SEARCH_BOX
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Business Card of Mr. K.M. Shadik Arman (Front View) Business Card of Mr. K.M. Shadik Arman (Back View)
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