AARONG- STRATEGIC

MANAGEMENT
Name: Kazi Sajharul Islam
1410028030
Contents
A brief overview..........................................................................................................................................2
Using Strategic Management for the growth of the firm............................................................................2
Internal Stakeholders and Strategic Planning..............................................................................................2
External Stakeholders and Strategic Planning.............................................................................................3
References...................................................................................................................................................5
 A brief overview
The initiative of the concept of Aarong was first come up with by BRAC back in 1978. What is
now considered as one of, if not the most popular lifestyle brand within Bangladesh, started off
as a small company that engaged with rural women in order to support their crafts and pay them
for their talents has now grown into 4530 million BDT business as of the earlier part of this
decade. The firm produces goods such as clothes, jewelry, shoes as well as decorative house
pieces. The company has made significant progress in eliminating rural poverty and has also
provided workshops in these areas to build their skills and efficiency in their field of work. These
employees or artists are offered and provided various support such as free schooling for their
children, subsidized tube wells and sanitary washrooms as well as free healthcare.

Using Strategic Management for the growth of the firm

Aarong used their strategic management skills in order to create best of both worlds in the sense
of keeping the culture alive through the products they sold as well as employing the minorities
i.e. the women in the rural areas who are traditionally not encouraged to work-within the country
and helping make their lives better. The solution to making the company grow includes the
following factors- the company’s mission, vision, their five year growth strategy, and the goals
they had to fulfill according to each of their stakeholders. They named their strategy the non-
profit flower strategy which included the following activities:

1) Creating more working zones for women.

2) Creating a supportive environment for Bengali women.
3) Supporting initiatives that promote women’s rights
4) Increase social responsibility
5) Promote Bengali Culture

Internal Stakeholders and Strategic Planning

The stakeholders- the Bengali women, related society, customers and distributors all benefit from
the strategies mentioned above. The demand for products leads to an increase in demand for
labor which allows more women to join the work force and showcase their talents. On the other
hand, more women joining the work force will allow more products and more product variation
which will draw in more customers and therefore more profits. Product variation will also lead to
a greater market share as different types of products will attract different demographics of
customers.

External Stakeholders and Strategic Planning

Besides those four key stakeholders, there are external stakeholders as well. The politicians,
government, NGO’s who work on women empowerment as well as celebrities who would like to
promote the brand since it would improve their image as it would mean that they also support
women empowerment. The government would be interested as it increases the labor participation
rate which in the long run leads to increased economic growth as it increases gross domestic
output
.
As shown above, that is the strategy the firm uses to help the company grow. Both of the flowers
are grown within the pot and this is done to symbolize the fact that their activities are rooted
through their mission and vision. Even though their goal as a company is to generate profit, their
vision which they put forth does not portray that. The only sort of commercial goal associated
with their vision is when they speak of increasing the brand’s recognition. We can assume that
this would of course lead to a larger market share and increased profit maximization anyways.

What this strategy and the company profile tells us is that with strategic planning and proper
marketing are the key factors to modern companies succeeding in the market place. It also tells
us that weather or not the company is a profiting organization or a non-profit organization or has
both goals; the company needs to ensure that their goals align with the stakeholder’s objectives
in order for it to succeed over time.

Conclusion

Creating the strategic plan helps all stakeholders envision the shorter version of all the outcomes
that the goals will achieve. It also provides an easy to understand outline for stakeholders to keep
them interested. It also allows for an attractive visual form for all sorts of communication
channels. Here it is important to remember that a strategic plan is more than a document that
displays the long term outcomes expected of the company. The outcomes of this planning can be
extracted and presented attractively so that all stakeholders can realize all the attributes of the
strategic planning.
 References
Sazonenka, Y., Towhid, Y. I., & Siemieniako, D. (2018). One-page strategic plan: the case of
Aarong company from Bangladesh. Engineering Management in Production and Services, 10(2),
57–65. doi: 10.2478/emj-2018-0011

Aarong. (n.d.). Retrieved from http://www.brac.net/brac-enterprises/item/878-aarong.